The Potential Cost of Leading By The Numbers

Posted by JJ (Hans) VAN DER LAAN on 20 July 2018 15:00:00 CEST

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If you’re like most executive leaders, the career climb you have been on has most certainly forced you to engage with senior leaders who are focused almost exclusively on the numbers.
Whether the spotlight is on sales growth, profitability, or perhaps total returns to shareholders, there is no doubting that most CEOs, for example, are driving hard toward achieving, if not exceeding, expectations for the financial health of the enterprise.

After all, these are a reflection of his or her reputation, and your boss may believe that delivering on those business objectives is the fastest track to a huge increase in salary or bonus or the reason they could lose his or her job if things go poorly. Particularly within public companies, the performance expectations around meeting quarterly revenue and profit targets is intense, and rife with opportunities to overlook the potential cost of leading purely by the numbers. Of course, one must recognise that setting ambitious goals can be a magnet for growth-minded talent and a real source of clarity for people up and down the organisation who want to understand where the company is heading and why.

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Topics: Financial