by Nathan Whittacre
The political season in the United States is in full swing. My willingness to pay detailed attention to current political standoffs ebbs and flows. I have recently been paying increased attention to it as the federal government has struggled to pass appropriation bills to fund the country for the next year. As a business leader, I feel it important to understand where the government is headed (cliff or stability?) to better plan for my own company. I’m also interested to see what potential leaders, such as those running to be the next president, have to say as armchair quarterbacks about the decisions being made today.
Don’t worry, I’m not running for political office and this article will turn to a discussion of business and technology. First, though, I am going to talk a little more about current events to bring home an important concept.
Negotiating From Weakness
As a small-business owner, I am increasingly disappointed at the mismanagement of the federal government and many of our corporate leaders. Not for ideological reasons, but for the poor leadership that I see. Whether it is the strikes by the United Auto Workers against the big auto makers or the standoff between different elected officials in Congress, many people in our country would prefer to win for themselves rather than succeed for the country. Because of decisions that improve their individual positions, they tend to negotiate from weakness.
Let me give you an example. The United Auto Workers are currently striking for better wages, shorter work hours and better retirement packages. In a recent article, the Wall Street Journal describes that the CEOs of the automotive companies make over 300 times more than the average worker. That ratio is not unusual for most large companies. I’m not defending that ratio nor saying it is wrong, but the important thing to note is that “over the past four years, the gap at the three [auto makers] has widened.” Additionally, the “median CEO pay package for S&P 500 companies was $14.5 million” last year versus $21 to $29 million for the auto makers.
With that type of gap and recent increase, it puts the management of these companies in a position of weakness in the negotiations with the unions. Because they have already been given big increases in pay without providing for similar increases for the front-line employees, it makes it harder for them to defend themselves against the increases of 40% over the next 4 years, about 20% per year. But the workers aren’t in the best negotiating position either. Their current total pay packages are nearly $60/hour. Some of their demands include a 32-hour work week, guaranteed pay increases, and security against shifts in production of electric vehicles.
Does either side of the argument benefit the companies’ position in the market against innovators like Tesla, Rivian, and Hyundai?
The Problem With Always Needing To Win
Whether it is the federal government struggling to define their spending priorities and constantly borrowing against the future, large companies padding the pockets of their leaders, or front-line workers demanding similar increases for themselves, the decisions are blind to the impacts to everyone else – especially the American consumer and small-businesses. On a recent trip with my kids, I noted the dramatic increase of gasoline prices to over $6 per gallon and the $20 per person basic fast-food meal.
The latest book by author Simon Sinek, “The Infinite Game”, discusses one of the biggest problems that most leaders face. Leaders are taught that they have to win. Win against competitors. Win against the market. Win in contract negotiations. The problem is that unlike sports games, business doesn’t have a definitive beginning and end. “Traditional competition forces us to take on an attitude of winning. A Worthy Rival inspires us to take on an attitude of improvement. The former focuses our attention on the outcome, the latter focuses our attention on process. That simple shift in perspective immediately changes how we see our own businesses. It is the focus on process and constant improvement that helps reveal new skills and boosts resilience. An excessive focus on beating our competition not only gets exhausting over time, it can actually stifle innovation.”
A shift in leadership from winning to constant innovation and improvement can dramatically change an organization. Rather than thinking that beating the competition and making the most money is the most important goal, improving the lives of the customers served, employees grown, and industry improved are the higher goals. Sinek states, “The ability to succeed is not what makes someone a leader. Exhibiting the qualities of leadership is what makes someone an effective leader. Qualities like honesty, integrity, courage, resiliency, perseverance, judgment, and decisiveness.”
The Infinite Game
Okay, what does this have to do with technology?
After reading the book and watching current events, I started to think that the fight in cybersecurity is an infinite game. I often consult with companies about their security. As technology professionals, we have to be right against hackers 100% of the time. Hackers only have to be right once. That is nothing like a traditional game where each time scores a few goals and the one that wins is the team that scores the most. How would it be to play a football game where one team could score 100 touchdowns but lose to the opposing team that just has to hit one field goal? Doesn’t seem very fair? That is the game we are playing in today’s technological age.
I am reminded of a former client that was upset about emails that we would send him giving advice on how to protect his company from cyberattack. He told us to stop scaring him about the threats in the world. He lived a good life and didn’t need to do anything different in his company. About a year after we took him off our security focused email list, his company was hit twice with an employee making a mistake that led to a cyberattack, costing his company over $100,000. So much for living a good life.
Best is Not a Permanent State
Going back to Sinek, he says “Infinite-minded leaders understand that “best” is not a permanent state. Instead, they strive to be “better.” “Better” suggests a journey of constant improvement and makes us feel like we are being invited to contribute our talents and energies to make progress in that journey.” Wherever you are inside your company with technology – or in any other area of your business – think about what you can do today to improve and be a little bit better tomorrow. In my book, The CEO’s Digital Survival Guide, I have several short questionnaires that are self-assessments to see where you are at in different areas of technology. I encourage the reader to choose an area of improvement and focus on doing something for the next few months to move the needle a little further. Consistent improvement will lead to better outcomes and “progress in that journey.” It will put you in a position of strength through technology.
Regardless of what happens in the federal government or union negotiations, leadership is about growing, innovating, and succeeding in the infinite game of business.
Want more insights on business and technology? Be sure to listen to our podcast, Stimulus Tech Talk.