E320: The Leadership Delusion: Why Feeding Zombies Is Killing Your Future
Wake up to reality. Or…
Here's an ugly reality that is rarely acknowledged? in boardrooms: your "sure thing" could be draining life from you. That unit you're strengthening? The product line or project you've invested good money in but still without return? The "tested" plan that hasn't borne fruit for years yet? They're not only underperforming; they're nearly dead assets. And you're footing the bill for the funeral. (I know it is painful to read this)
Legacy is loved by senior leaders. It's comforting. Familiar. But legacy is a liar. It tells you, "Stay the course. Cling to what you've built. Double down." When the market (reality) has already moved on without you and has changed.
Blockbuster mocked Netflix's DVD-by-mail idea. Kodak invented the digital camera—then shelved it to protect film. Sears clung to department stores while Amazon reinvented “convenience”. These were not failures of imagination. They were failures of courage. The courage to accept a new reality and adapt accordingly.
Ask yourself:
When did "prudence" come to be synonymous with "shirking tough choices"? Sometimes “being cautious” is about making bold decisions.
?2. Why Smart Leaders Chase Ghosts
You're familiar with the sunk cost fallacy (the tendency to continue investing heavily in a decision, project, or endeavor just because of the time, money, emotion and effort already spent - even when doing so is irrational and wrong) . And yet here you are, investing millions in a dying market/project because "we've always done it this way" or “we already started, so let's finish it.” Because laying off the team feels disloyal. Because changing your mind may appear weak. Because of ego or stubbornness. Because failure feels more frightening than slow death…
But… Every dollar spent on yesterday is stolen from tomorrow. (read this again)
Opportunity cost isn't a theory; it's the sneaky killer of innovation. While you're busy getting bogged down in rationalizations, your competitors are out there redefining the game and you are depleting your rare resources.
?3. Zombie Markets Bite Back
Zombies do not go quietly. Zombies drain resources, talent, and focus. Zombies foster a culture of denial. They also have an unhappy habit of dragging healthy divisions down into their pit.
The Corona pandemic didn't "disrupt" markets—it revealed rot that already existed. Retail, hospitality, fossil fuels—entire industries are transforming or dying. Market shift, disruptions and geopolitical changes are also “a form of Corona.”
The question isn't "Will this market die?" It's "Will we die with it?" (read this again)
?4. How to Recognize a Zombie (Before It's Too Late)
- The Return On Investment (ROI) Mirage: If growth requires huge effort for only micro returns, it's not a market—it's a hospice.
- Customer Stockholm Syndrome (falling in love with your captives): Your loyalists to old realties are not a market—they are a museum exhibit.
- The Innovation Black Hole: Leaders and teams spending 80% of their time on maintenance, not innovation? Red flag.
Zombies flourish in denial. Kill them with data on reality. What is the data telling you?
?5. The Art of Strategic (smart) Surrender (or cutting loses)
Leaving is not failure—it's strategy.
- Audit Ruthlessly: Don't finance it if you wouldn't invest in it today. Eliminate it tomorrow!
- Pivot Fast: Shift resources to adjacencies. Microsoft dropped Windows phones for cloud supremacy.
- Reward Courage: Advocate for leaders who gracefully conclude projects, rather than solely those who expand them.
6. Legacy Is Not Only About Protection - It's About What You Create Next?
The market remains indifferent to your years of service. Your stock price won’t surge simply because you endured. Exceptional leaders do not cling; they curate. Your job is not to preserve the dead wood of the past. It's to bet on the future.?
Final Thought: Time is running out. Will you still be polishing your trophies, or will you start building new ones? The marketplace rewards the leaders—not the laggards.?
In personal life and work, the exit is over there. The future is wherever you dare to create it.
Michael?
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