Leaders Drive The Bus(iness)

As I am writing this article, there are a multitude of corporations in the midst of layoffs and world governments are attempting to contain the impact of asset write-downs that have triggered bank runs.

Whenever economic situations like this occur. (Statistically every 7~ish years) There are a lot of people who get displaced from companies that grew like crazy during the boom times when there was cheap credit and/or what looked like a 'new paradigm' for the economy.

Side-Note: Whenever you hear somebody say "This time it's different" it means they are trying to sell you something that only makes sense in an expansion. Use the hand that isn't pushing them away to keep a firm grip on your wallet.

Now we get to the companies that grew like crazy during the expansion and are now in danger of missing earnings targets, so layoffs are happening.

You might ask ... Isn't this normal?

My answer is that it's only normal for businesses with people in positions of authority who are trying to be 'passengers' on the bus instead of driving it.

So what does a Passenger on the bus look like?

• Passengers are the people who complain about needing more people on their team before they can solve problems. (aka 'Empire Building')
• Passengers are the people who talk about the efficiency of 'their' department instead of talking about creating value for the whole company.
• Passengers are more concerned about the value of their company stock account than the business value that has been created for their customers. (I think that last sentence might ruffle a few feathers...)
• Passengers are contented to attend meetings and answer emails all day, without moving the decisions forward that will create value for the shareholders and customers.

What it really comes down to is an ownership/accountability mindset (Driver) vs. a passive/reactionary mindset (Passenger).

"Passengers in Positions of Authority are not Leaders … Leaders Drive"        

With that said, every business has passengers. Passengers are absolutely necessary to do the critical work of your company. In fact, not everybody in the business can be a driver. (The word for this situation is 'chaos')

The problem comes when the people eleveated to positions of authority are still passengers instead of becoming drivers.

So what does a Driver look like?

• Value-First: Drivers start with customer/owner value and work backward.
• Creative Problem Solvers: Drivers figure out how to grow without 'building an empire' so that the inevitable downturn will not require large layoffs.
• People-Focused: Drivers understand that their value comes from increasing the value output of the people on their team by more than they are paid.
• Creators of Productive Tension: The only situation where everything goes smoothly all the time is one where the goals are sandbagged and people aren't growing. Drivers create productive tension, take risks, fail, learn, and improve.

The same phenomenon applies to banks and banking. With money moving at a faster speed than ever before, banks that run on old business models are more fragile than ever before. Drivers who understand the bigger picture and are value-focused will see the need to adjust their strategy. (Ex. Maintain more liquidity than is required by the regulators.)

What it all comes back to is that Leaders need to drive.

Leaders need to drive value, direction, and their people.

Down economic times are when it's hardest to be a driver, but it's also when it's most important.

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**This article was proudly written without the influence of A.I.