Having spent more than two and a half decades in the corporate sector and the last seven in academia, I’m conscious of a dilemma which executives and professors face. The dilemma being “Where should I focus my limited resources for the best possible outcome? Do I fix the losers or fuel the winners?”
Now some of you may wonder how this dilemma is relevant in both the boardroom and the classroom. Let me explain.
Most companies manage a portfolio of products and brands which are intended to maximize the impact of the firm’s capabilities and resources, essentially money and manpower (also referred to as time). It is fair to say that no firm ever has enough time and money to do everything that the corporate heart desires. Ambitious CEOs, COOs, CFOs and every C-suite executive worth his or her salt dreams big and envisions a bold and bright future for their firm. This translates to super normal growth in sales and profit delivered through business strategies that expand existing brands and businesses while simultaneously launching new products and pursuing new markets and categories.
Along the way, some businesses will deliver expected results while others miss their goals. This mixed bag therefore needs to be managed. That is where leaders must choose exactly how much energy to put into getting the non-performers back on track. The issue is not simple since some non-performers may have involved high profile and very public corporate plans, they may represent the big bets on the future and could be a key part of a general revival of the firm’s fortunes. Others may be smaller initiatives that are falling behind for multiple reasons, one of which may be under-funding or lack of management attention.
I’ve found that irrespective of circumstances, many leaders tend to view the fixing of poor performing businesses as a priority, often giving time and attention way more than the potential payback. My sense is that in boardrooms, failure of any kind is unacceptable and equated with the reputation of the leader and the team. High powered teams and long hours sometimes do produce the desired turnaround yet equally may have little or no positive results to show for the effort.
The question to answer is “Would the firm’s overall business have been stronger if management had spent more time fueling the winners?”. An honest assessment would probably lead to a realignment of resources.
In the classroom, the academic community has a similar challenge. As I teach at a business school, I’ve faced this issue every semester.
Typically, one third of the students in a class may be actively engaged, one third may be passively engaged and the rest don’t care at all. As the professor, I have to choose where to devote my energy.
In my experience, those who don’t care, rarely ever will. For this lot, my only rule is that they should not disturb and distract the professor and their fellow students.
Some students who are passive are in fact interested in the subject, though they prefer to stay below the radar possibly due to lack of confidence or a generally reticent nature. For some the awkwardness of a silly question or a wrong answer is the issue. Identifying such students can be a tricky affair and engaging them has to be done sensitively. I’ll readily admit that I haven’t got it right every time.
My biggest learning is that my own time in the classroom is best used in driving the passion of students who are determined to get the most out of the course, the faculty and the whole B-School experience. These are the ones who do the prescribed reading, actually pore over case studies and use the classroom to share experiences, clarify doubts and solidify their learning. This cohort is like a high potential brand that will break records in sales, profit and market share if it is supported with strong investments in Marketing, innovation and of course management attention. By focusing on these students, I help to spur their interest and deepen their understanding of the subject which creates a superior ROI for them and for me.
I realize that some of my colleagues in the corporate sector and in academia may disagree with me and I will readily acknowledge that handling an issue as complex as this has many dimensions and considerations. After weighing the options, this is the choice I’ve made.
Now over to you. Where do you focus your time – fixing the losers or driving the winners?