|
The Leadership Insider network is an online community where the most thoughtful and influential people in business contribute answers to timely questions about careers and leadership. Today’s answer to the question: What’s the best way to keep your company successful? is written by Rich Lesser, CEO of the Boston Consulting Group.
There’s something heroic about a CEO who parachutes into a company that’s facing an existential threat. While such turnarounds are never really a one-person show, it’s the CEO’s boldness and resolve that invariably stand out. They get the credit and the cover story.
But just as impressive, if not as celebrated, is the CEO who upends the status quo when all is (seemingly) well. Such efforts, I believe, require at least as much leadership, tenacity, and vision. They may not seem as miraculous or necessary as a change-or-die turnaround—until you consider how hard it is to instill a hunger for change, and what’s on the line when complacency sets in. Picture the new CEO walking into a historically successful company. This CEO often inherits an organization with an excellent balance sheet, a good reputation, strong market positions—and almost no appetite for broad change.
These organizations tend to be highly self-confident. They are convinced they have the winning model and the best people. Senior executives have received tremendous affirmation, sometimes over decades. Ingrained patterns of behavior have been rewarded over and over again. Internally, silos get built, staffing levels grow, and politics intensify. Self-criticism is often muted. With so much success for so long, what’s the point of being too harsh, anyway?
But the borderline between confidence and complacency is thin. Over and over, historically strong companies have slipped into periods of decline, sometimes precipitously. In fact, the life expectancy of public companies is shorter than ever. So how can the leader of a successful business reset the direction and re-energize the organization before a crisis hits? Every situation is different, but here are some elements that cut across many of those who succeed:
|
|