Shareholders measure success through share price, debt ratios and other financial measures. For this reason and others, management teams make decisions that attempt to maximize financial performance – buying equipment, investing in systems, right-sizing the workforce, etc. What about the subjective decisions that management makes? These decisions involve interactions with people – attending meetings, solving problems, encouraging feedback, protecting power, etc. These decisions seem somewhat disconnected from dollars, so little thought may be given about their impact to earnings. We sometimes accept these decisions as part of “the culture” – proactive if they are good and reactive if they bad.
WHAT IF… the connection between subjective decisions, organizational change and the bottom line was clarified? WHAT IF… the subjective choices made by management directly contributed to successful change and the bottom line?
Well, the connection CAN BE clarified and these choices DO affect the bottom line! The next time you are faced with a subjective management decision, think about the courageous choice that you could make vs. the political choice you could make. If you knew the truth, your people are waiting for you to make the couraegous choice. One more thing to consider…If your shareholders could have access to the choice you are about to make, what would they expect you to do?