Leaders have to make tough decisions. It is what their position requires them to do. Whether in business, at school, in government, or anywhere else, leadership is often measured by the ability and willingness to do the right thing.
With that in mind, here are four work-related decisions all leaders should make.
Time to Let Go
As a homeowner, one of the worst things you sometimes have to deal with is pests. Whether it is flies, cockroaches, or mites, a few of these creatures can have a long-lasting, damaging effect on a property. In such cases, your best bet is to contact a rodent or mosquito control services provider to deal with the issue before it becomes unmanageable.
The same is true for companies with bad employees. One bad apple can influence others, and before you know it, the entire business is in disarray.
But how does a leader decide whether to fire a particular person or keep him and give him one last shot? After all, these are also human beings with rents to pay and mouths to feed.
Unfortunately, there is no simple answer to this question. Still, as the head of an organization, one should look at the long-term effect this person might have on others and the business itself and whether his ability and skill level are worth the trouble that comes along with them.
A product or service being successful in one area does not guarantee it will thrive in another. No matter how unique it is, how far ahead of the competition it might seem, or how profitable it has recently been, economic outlooks and consumer trends change at the drop of a hat. While yesterday’s smartphone could be the talk of the town, today or tomorrow, things could be very different.
One of the biggest qualities all leaders have is knowing when to push forward and hold back. They understand the intricacies of a specific situation in ways others cannot and can galvanize the troops to focus on achieving a seemingly impossible goal.
Still, there are a few points company heads can look into when considering an overseas expansion. For instance, one aspect they can explore is cultural similarities. How similar or different is the country I am planning to go into from my own? Are there any potential synergies that will help the business develop and expand? What consumer behaviors parallel those of the citizens back home?
A careful analysis of the answers to these questions will aid in making the most suitable decision for your firm.
In the financial investments world, two terms are often heard in internal meetings and sessions with clients. They are “sweet spot” and “perfect timing.” It makes you wonder why there are two of them, when, in reality, they mean pretty much the same thing.
In any case, the sweet spot is that distinct moment that most investors dream about finding but few ever do. It is when a stock is at the highest it will ever be, and thus, it should be sold.
From a business perspective, entrepreneurs and small company owners often reach that moment when they have to decide whether to sell their business to a larger corporation or keep the status quo. Of course, there are advantages and disadvantages to both decisions. If there weren’t, the choice would be as easy as pie.
In these instances, the leader’s vision and corporate acumen are truly tested and the great ones differentiate themselves from the rest of the pack.
Shut It Down
In the words of the great oracle from The Matrix Revolutions, “everything that has a beginning, has an end.” As obvious as this might sound, a mistake many organizational leaders make is not knowing when an enterprise has run its course and reached the end of its productive life. Even worse than that, some entrepreneurs know the company cannot be saved but remain defiant and unwilling to use common sense when making business decisions.
No matter how much effort you have put into your organization’s growth or how much you love your staff, the best decisions in life are often made when having a clear and dispassionate mind. Keep in mind that a business is a legal entity, not a live one. Remember also that choosing to shut down now can be a good thing moving forward. Besides saving money that can be better used later, you are giving your employees the time to adjust, accept the reality, and find a position elsewhere.
Four important decisions all business leaders should make are deciding whether to keep or fire employees, expanding globally, selling the business, and closing the company down. When done right, they can be the difference between a thriving corporation and one left in the dust.