FOCUS
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Goodbye, Houdini
Executives must wriggle free of management escapism and try leading instead, says Joe DiVanna
Senior executives are routinely caught in the profits-this-quarter trap. Majority shareholders typically get our attention, and our bonuses are often tied to performance metrics that reflect the philosophy of these shareholders: returns at all costs. Is this merely a form of modernday corporate escapism? Is our responsibility as enablers of long-term corporate sustainability thwarted if we have to make compromises that are short-term in focus? Can the short-term productively reflect the long-term goals? Senior executives are also faced with “I am almost retired” syndrome. Realizing that you are just a few years from retirement can lead to the postponement of decisions that are essential to the long-term viability of an organization. In extreme cases, some senior executives opt to ignore these types of decisions in the hope that the organization might fix itself during the course of normal business. This behaviour is not exclusive to those nearing retirement – it can regularly be seen creeping slowly into one’s personal management-style based on the type of organizational culture. These people are escape artists: they escape making the hard decisions by deflecting them to another time or to other people. Dialogue Q2 2018
Leaders lead
The cure for management escapism is called ‘leadership’. Take a step back from the process of decision-making and look at the context in which decisions are made. A pattern emerges. In many cases, our avoidance of the decision is due to the fact it is a reactive decision. A condition or event has occurred; a decision to coursecorrect is needed; this decision is counter to the status quo – or more precisely – to the plan we are currently executing. That reactive leadership appears disassociated from the strategy or plan, making the senior executive seem not fully in control of the organization. Proactive leadership is easier said than done. Academics and scholars often extol the virtues of proactive leadership but are rarely on the frontline of decision-making where pressure to meet the expectations of multiple stakeholders is often overwhelming. The first step to curing this condition is to recognize that you have the disease.
The diagnosis checklist
Finding out if you are trapped in corporate escapism is not difficult. Ask yourself the following questions: