How Much is that Bugatti in the Window?

Even if I could afford a Bugatti, the chances of me actually buying one, let alone driving one would be very slim. Why would I drive my vanilla Prius rather than a Bugatti? Basic stupidity? No. (well, maybe.) I would submit to you that it is because for me, a Bugatti is not worth the expense. I think the car looks great and makes one heck of a statement, however in relation to my income, I would never buy one. (Even if I could afford it, it's not important to me)

Sometimes in business, while developing our strategic plans, setting our goals and reviewing our budgets, we set goals for ourselves and organizations that are much higher, and far more difficult to achieve than we realize. We always tell our sales forces to under promise and over deliver. And yet it seems we do the exact opposite to our stakeholders. Why is it that corporate leadership sets strategic plans for target so high and in a short period of time? Is it because were all overly ambitious? Is it because we don't understand that effort and structure it takes to reach that goal? Are we, ego driven?

I have seen this done for several reasons: 

As a motivational goal- If the organization reaches two thirds of where the goal is it is far above what has been promised to the stakeholders of the organization.

A lack of understanding- The true cost of the goal is not fully understood. There are times that goals have been set that are truly beyond the organization’s capabilities because there had been a miscalculation of the effort or most often, the time it will take to achieve that goal. Most often, the goals are met just not in the promised time frame.

Ego-sometimes the leadership needs to show off. Out of these reasons this is the most deadly. In this situation, the leader will push forward at an accelerated rate like a bull in a china shop, completely oblivious to their own personal abilities and the strain that this causes on the corporate structure.

None of these are particularly healthy for an organization. If you are setting high goals as a motivational tool, you will undo any motivational efforts if you do not achieve that goal. Your employees will become discouraged thinking that they are the reason you have not met your goal. This is organizational cyanide. This always backfires and de-motivates employees in the long run. 

If there is a lack of understanding, I'm sorry; there is no cure for stupidity. You need to figure out if you are a smart person doing stupid things or if you are truly over your head. That one is on you.

If you are driving forward at an accelerated pace because of your ego, you will end up doing damage not only to yourself but to your company. There is no excuse for rudeness at an executive level. (Maybe I should blog about that later). I've seen many of these people rise and fall. 

On a smaller scale, I repossessed a brand-new Peterbilt from an independent owner operator (credit misfire) who could not afford the truck. During the postmortem process, I actually called the customer and asked him why he purchased a truck that he obviously could not afford. His answer was overly simple: “Because I looked good in it.”

I had no comeback for that one.

We need to ask ourselves why we want to grow our companies. Why are we aiming for that Bugatti? Is it because we care about the people we work with and want to ensure their success, is it that we want long term success, or is it because we look good in it? 

I for one am not sold on the fact that I would look good in anything I drive, especially a Prius.

Until next blog, enjoy your flavored water and ride the wave of life.

Thanks,

John