Navigating the Unknown: How to Remain Decisive and Agile
This interview series is designed to inspire game-changing strategic leadership - an elite level of performance estimated to be achieved by about 5% of leaders today. Leaders like Indra Nooyi, Herb Kelleher and Howard Schultz.
It features insights and experiences from innovators, creators, leaders, authors and strategic leadership experts - each working at a current edge of discomfort to amplify their strategic impact and transform the future of leadership. Each guest is invited to take my Strategic Impact Quiz, which identifies where they are on their journey to game-changing strategic leadership - are they a THINKER, PLANNER, CREATOR? Or have they achieved the elite performance level of a TRANSFORMER??
I hope their stories inspire you, each day, to be just 2% more of that trailblazer you are called to be.
Today on the Game Changer Series, I’m joined by Raj Sodhi, Board Member, Operating Director, Digital Innovator and Technology Strategist.
Q: As a serial entrepreneur and innovator, I imagine you were often coming up with new ways to create value. Yet with so many opportunities to pursue, strategic trade-offs are needed to bring clarity and focus.?What advice do you have for making these difficult decisions?
A: Trade-offs are constant and necessary. They include:
In my experience, the most effective way to make the best trade-off decisions is to run various combinations of trade-off scenarios using a financial forecast modeling exercise. This requires good data, conviction on the assumptions for each trade-off and an objective leadership team. The outcome of this process is a fact-based and structured approach to a modified plan that the company can rally around. It’s also important to look at which trade-offs are permanent vs. those that can be deferred to a future time.
I was part of a fintech business in the early 2000s, where we maintained our competitive advantage and drove significant growth by focusing our R&D dollars toward revenue-generating innovation. There was a rapid increase in InfoSec events across Fintech at that time. ? We made a series of trade-offs to fund the right security initiatives to protect our users and the business from the risk of bad actors and an InfoSec event. This ultimately led to a decision to sell the business and be part of a larger organization with a centralized and scaled InfoSec function. Although this decision was tough, it was right for the team and the business.
Q: What advice would you give other leaders about taking risks and creating new sources of value??
A: Many people have bold ideas. Few people have the experience to see around the corner or the stamina for the hard work to see the idea through.
I’ve learned that the best way to shape a great idea is to clearly understand the market and build an accurate model of how the future will play out.?
Next, place the business or idea inside this model and play forward the strategy, the competitive response and likely outcomes. If you get this right (or mostly right), the risks are significantly reduced, and you can change course as the market and customers react to the execution of the plan and ultimately capture a significant share of the value created.
Innovation doesn’t have to be a big bang. Instead, having the organizational agility to change go-to-market strategies, product/service offerings, etc., can help navigate the risks.
Q: High-stakes decisions, fraught with uncertainty, are foundational to strategic leadership. What counsel would you offer to individuals hesitant to take big risks due to potential backlash?
A: Transformational thinking and programs are often met with resistance. Addressing the opposition with a clear articulation of success metrics and the long-term value creation opportunity can ease the backlash. Often, it’s not the idea being resisted but rather a lack of understanding of how to execute. It’s important to bring others along and help them adapt to the new ways of thinking.
领英推荐
Q: How have you been able to align a team around a shared purpose/direction that started with diverse perspectives, opinions and objectives??
A: To establish a foundation, I like to have a strong understanding of the market dynamics, customers, and competitors and have a firm handle on the current state of the business and its capabilities.
Next is strategy formulation – this is a team effort. The strategy formulation process helps the team challenge assumptions, refine scope, define sources of competitive advantage, specify capabilities needed, and sequence execution priorities.
Test the thinking in the market by building confidence through iterative learning.
Q: You are known for turning vision into results.? What role do strategic measures play in helping you and the team advance towards your strategic direction?? What advice do you have for creating these?? How are they similar or different to standard operating measures and KPIs?
A: The north star for the business is the Mission, Vision and aspirations for the company's performance. The model that drives the business forecast is an essential tool in strategic planning. The mechanics of what drives organic growth – levers and limits, in addition to the possibilities and realities of inorganic growth- paint the picture of the business's potential. From here, the value-creation plan should connect KPIs to the forecast. In my experience, the day-to-day operational metrics that drive the KPIs are often forgotten. It’s important that the business connect the dots and force accountability on the operating metrics, KPIs and achieving the performance MoM / YoY.
Q: Great leaders learn from past mistakes instead of hiding from them. What was one of the hardest strategic mistakes you had to own and course-correct??
A: When integrating teams, especially through M&A, it’s essential to understand cultural alignment and address differences early. Sub-cultures between businesses are manageable when there is a clear alignment on values, accountability, inclusivity, and empowerment.?
At one point in my career, I didn’t address the toxic culture of a newly acquired entity early and directly. I accepted that this was tolerable based on the strength of the business's financial performance. In the end, not addressing the culture had a material adverse impact on performance, caused high staff turnover, and resulted in an erosion of trust in the business and my team. Ultimately, changing leadership, resetting culture and doing the hard work to build back performance in the business was the only way to course correct.
Q: Raj, you've often been recognized for your caring leadership style. And a game-changing strategic leader must actively manage the balance between leading with conviction and connection. How have you learned to balance these seemingly opposing characteristics?
A: Be consistent, be transparent and be yourself. We don’t need to change who we are based on the circumstances to succeed.?
Great leaders are decisive and comfortable not having all the answers immediately.
Be objective and open to feedback while maintaining a healthy boundary between your role as a leader and your friendships.
Don’t promise more than you can deliver simply to rally the team. Follow through on all commitments you make. This helps build a foundation of trust.
Be part of setting an example about healthy debate, the value of purposefully introducing counter points of view, and the importance of alignment and support for the agreed path forward.
Take a genuine interest in the team and their development as leaders and as a team. Always be accessible to support them.
Thank you for participating in the Strategic Impact Quiz, Raj, and contributing to this series. Are you a THINKER, PLANNER or CREATOR? Your result could give you the insight you need to elevate your strategic impact. Take the quiz and get started HERE.
Subscribe here to receive more Game Changer series interviews sent straight to your inbox!
Great piece, Karin!