For the vast majority of their time, ELT members are engaged in tasks that fall under their C-Level hat. So is it any wonder that they forget to “change hats” when participating in management meetings or executive leadership off-sites? Often, this leads to tugs-of-war, dragging these meetings down to tactical discussions and short-term focus – when in fact, the single most important role of the CEO’s senior level management team is to think beyond short-term, departmental perspectives and consider the company’s path forward as a single entity.
Just to clarify, ELTs must certainly spend time sharing updates, putting out fires and discussing ongoing tactics – but in my opinion, this is not their most important function in the company; rather, it is to be critical mid-to-long-term strategic decision-makers.
- Not Enough Time to Think
In their C-level roles, ELT Members often spend most of their time knee deep in execution – often as another player on the field so to speak rather than as the head coach of their respective departments. So when they manage to break away and convene for management meetings, they show up relatively unprepared, having spent insufficient time reviewing materials sent ahead of the meeting… actually, in too many cases, such prep materials are not even circulated.
- Not Thinking Optimally
Sadly, even when time is set aside to think, it is often not used effectively.
I have had the pleasure and privilege of working with many of the world’s most veteran and capable executive leaders. Yet even they are not immune to the internal biases and external distractions that plague us all. Often they do not properly define desired outcomes and success metrics (“Value Oriented Mindset”) to serve as focal points against which alternatives can be weighed and compared. Instead, they are preoccupied with the challenges of insufficient resources (“Resource Oriented Mindset”), and pressing deadlines(“Solution Oriented Mindset”).
Rational decision making has a formula, no matter the industry or the product or service. It involves a very specific logical sequence of questions, each focusing on a different strategic component:
Desired Outcomes / Value Creation: “What is the future state we wish to achieve?”
Obstacles: “What is likely to prevent us from achieving this desired future state?”
Solutions: “What are some of the ways to overcome these obstacles?”
Resources: “What will we need in order to fuel/execute the solutions we select?”