1. A leader with a GREAT WHY that manages to disconnect execution?
2. A Leader who manages great execution with no WHY?
There are a lot of ways to go out of business. Many of those ways appear random but are completely predictable yet companies that follow Revenue Science™ do fail from less predictable “Black Swan” events, rapid changes in technology, politics, the market or other environmental factors.
Two of the most common predictable reasons for business failure are leaders with a GREAT WHY that manages to a random execution model and leaders who manages a great execution model with no connected WHY!
Let’s talk about both of these reasons for failure and how each leader can avoid these causes for failure and manage their business in a more complete way with predictable success.
A leader with a GREAT WHY that manages to disconnect execution is the most disappointing. This leader talks about a WHY based on a worthy intention often embraced by everyone around them. The WHY may be good for the country, the local community, the environment, children or any higher purpose.
This leader finds early investors, an excited staff, committed partners and eager customers. They are all attracted by this WHY and ready to support the shared dream and everything starts with a flurry.
The flurry may last for weeks, months, years or even decades until the WHY bubble bursts and the world expects real results or competition presents better ways to reach the same WHY. This WHY only business model keeps telling the “Worthy Intention” story and hopes the organization will make it all real. Since everyone in the organization can talk about the WHY they all must know what the correct execution. The result of everyone executing their work based on their interpretation of HOW to make the WHY real is Chaos. When the organization is small and before competition, the common LOVE of the WHY seems to be enough. Even one knows everyone and they will work all the hours it takes to move the WHY forward.
As the organization gets larger and is racked by competition the wheels come off and the business dies. Everyone is in mourning for the loss of the dream and can’t understand what happened.
The simple answer is every WHY requires an aligned HOW that is supported by intentional deployment making WHAT gets done a discipline shared by everyone inside and out. No matter how powerful the WHY it requires the aligned HOW and WHAT to focus the energy and resources.
Leader two manages for great execution. Since there is no WHY they just demand results. This leader is able to teach, train, measure everything and everyone internal and external. As long as the market wants to be fulfilled by this leader and will accept a “good enough” product this leader excels. They hire execution experts, they pay for performance, and drive everyone to higher and higher levels of outcomes.
Over the long-term this leader has to buy other companies and products because they don’t understand the market, always compete on price and hope to figure out growth and margin maintenance.
One day this business exists and is paid for cash flow and customer list. They are a few valuable staff who will work for the highest offer.
This leader’s team may have developed a HOW to support their WHAT. As long as the market didn’t change or demand something with higher value the well-executed WHAT supported by an average HOW works.
This leader will move from one execution opportunity to another until they realize that long-term success starts with a compelling WHY and an aligned HOW. Once you have those in place a well-executed WHAT is a valuable and powerful, but not until then.
Both of these leaders will go out of business. The first will make many sad and confused. The second will disappear and be soon forgotten. Revenue Science™ is about predictable outcomes and organizations that ignore an aligned WHY, HOW and WHAT will go out of business just at different speeds.