“Winning Now, Winning Later — How Companies Can Succeed in the Short Term While Investing for the Long Term” by David M. Cote (Harper Collins Leadership, $28.99).
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“Winning Now, Winning Later — How Companies Can Succeed in the Short Term While Investing for the Long Term” by David M. Cote (Harper Collins Leadership, $28.99).
The problem with “short-term make the numbers” thinking: It doesn’t build the foundation for what’s next. Cote, who became the CEO of Honeywell in 2002, found an organization steeped in “intellectual laziness (IL).”
What’s IL? Using the same-old-same-old (so-so) processes and procedures to run a business in a market where change dominates its future. IL turns departments into silos competing for resources needed to meet their short-term goals “without concern for their actions’ broader consequences.” Essentially, there’s long-term organizational goal or planning.
IL also affects the view of the customer. By focusing solely on what’s directly in front of them, intellectually lazy managers lose touch with changes in market demands and their supply chain. The adherence to so-so eschews critical inquiry, which values stakeholder feedback as the way to solve problems and anticipate needs. When running a so-so business, you lose competitive advantage.
How do you rid yourself of the constraints created by IL? Recreate culture around Cote’s five initiatives:
1.”Growth” — Listen to customers. Listen to the market. Invest in the future through R&D. Take intelligent risks.
2. “Productivity” — Create a learning environment by practicing continuous improvement. Share what’s working and what isn’t. Find solutions to what isn’t. Also, remember that cutting corners doesn’t improve products.
3. “Cash” — Manage working capital. Pay attention to financial and operating leverage metrics. Ensure you fund R&D; let it explore trends, not just products.
4. “People” — Continually, invest in intellectual capital; talent development motivates people. Challenge employees to contribute ideas. Define success in terms of the organizational goals and their personal goals.
5. “Organizational Enablers” — Develop cross-functional platforms and ways to measure their application and outcomes across the organization.
Takeaway: Management must be the role models for change.
