What’s holding you aloft in 2020?
Whether or not you have cracked the code of 2020, most CEOs have spent the year snapping back to a changed reality. In our last blog, we looked at the importance of being engaged, insightful, and plugged in as the “table stakes” of leadership change in turbulent times.
But all the engagement in the world is pointless if you don’t know the direction from which your headwinds and tailwinds are coming.
More to the point: If your company were an airplane, then insights—the detailed information you need to understand competitors, targets, trends, and market news—can be considered the wind beneath your wings.
And if you don’t have a keen focus on how these megatrends are keeping your ship in blue skies, you may just find yourself hopelessly lost in a cloud bank. And falling asleep at the controls – well, that could just be deadly.
A recent example: I was working with a large hospital group in the mid-Atlantic region that was trying to understand why a satellite emergency care facility wasn’t generating the profits they expected. My first fact-finding mission—a demographic market survey—uncovered a critical misstep by the group: There was simply no need for the satellite facility to begin with, based upon the existence of other healthcare facilities in the region and the size of the market.
It became abundantly clear: A simple dive into the basic blocking-and-tackling of insights would have saved the company millions – and the awful mistake of building something for which there was no demand.
It’s a faux pas that I see repeated time and again: Leaders, without any research whatsoever, and based simply on a “good idea,” are convinced to plunge resources into products or services that fall flat in the market, and then wonder why they’re not making any sales.
In my view, this is but one example of why the ability to look at data and insights is a critical skill for CEOs who are looking to make more effective decisions – a basic tenet of being in charge these days.
So, what types of insights should a CEO be focused on in order to ensure the relevance of their offerings? Here are just a few fundamentals that I believe are useful:
Customer Focus: It’s important not to become too far removed from your buyers these days. In days of yore, it used to be that successful CEOs could get away with pushing off customer insights on other department heads. Now, with digital marketing, and the availability of instant knowledge about target audiences, the CEO has to be keenly aware of market factors which can move for – or against – them quickly.
The most successful CEOs I work with are the ones that have innate knowledge about their customers and their relationships with their companies. They even phone customers directly to hear what is driving their decision making. In this manner, they can see a necessary pivot coming if customer needs are changing, or if the market is exerting different forces on their business.
Insights Machine: Some companies have elevated insights to an art form and have even installed Chief Information Officers to help lasso, wrangle, and otherwise manage myriad data points into submission. This new CIO role ensures that a member of senior leadership has accountability for delivering proprietary knowledge and a library of information that helps keep the company’s competitive edge sharp.
Research, Analyze, Repeat (Often): Both CEO and CIO will benefit from a robust and dynamic industry analysis program that delivers insights on a very regular basis. No longer is it appropriate to conduct this type of research once a year – once a quarter may be the appropriate interval to gather data that spells out all the threats and opportunities that are hitting their specific industry. And in my experience, the most insightful companies don’t just insist, but mandate, that their entire senior leadership team, as well as their board members, consume this knowledge.
As an example, I worked with a company recently that was experiencing massive shipping delays as a result of the pandemic and couldn’t quite figure out why. After gathering insights, they learned that lighter packages were being delivered significantly faster than heavier ones. By unbundling some of the shipments into smaller chunks, they could significantly accelerate their supply chain.
Another company in the beverage industry was having trouble sourcing the bottles that their drinks were packaged in – and upon analysis, learned that this would remain a challenge during the pandemic. They pivoted their entire production line to can-based packaging to ensure their ability to keep up with the surging demand for their product.
In our next blog, we’ll roll up what we’ve learned about the importance of being an engaged and well-informed CEO and put these traits to work in honing your competitive advantages in the marketplace.