For public companies the Holy Grail is the quarterly results. The quarterly results are also one of the deadly diseases left over from the industrial era that infected the minds of leaders and managers. Results are a disease that is hard to cure and that is why many companies struggle today.
Results at all cost are what destroyed many an organization and corrupted the hearts and minds of many industry leaders.
Deadly Diseases Perpetuated by the Results Mentality
Managing by the results perpetuates “moral, social and mental diseases” that destroys value for all stakeholders and not just shareholders. The mental, social and moral diseases are evident by actions and attitudes dominated in organizations doomed to fail. These include:
- Human capital is less important than financial capital
- Relationship capital is something you use rather than build
- Strategic capital is what we use to beat up our competitors
- Structural capital is what we invest in tangible things that produce profits.
- Work is a place not a not a value added activity
- Value is something we receive rather than create
- “Social” is a technology rather than a philosophy
- Results are what we produce rather than what we earn
- Power is appointed to those with the position and the ability to control
- Money is the result of producing and selling more
These 10 diseases have been perpetuated by infections created by old knowledge that is no longer relevant to the human network.
10 Remedies to Stop the Infections
Mental, social and moral diseases come from an infection of the mind perpetuated by old business models and social paradigms reflected by the ten diseases listed above. There is a social shift underway that provides the remedy to the mental, social and moral maladies created from incestuous thinking of the past. These remedies start by learning and understanding the following 10 truths:
- Financial capital is produced from human, strategic, structural and relationship capital
- Relationship capital is earned from human engagement that represents the institution
- Strategic capital is created from collaboration not competition
- Structural capital is what you provide people so they can leverage the value they create
- Work is an activity of affinity not a place
- Value is something that we co-create
- Social is a philosophy that attracts human capital
- Smarter Companies create results from intangible capital
- Power lies in the network not the individual
- Producing more value creates more value than money
Learning and understanding these truths is the first step to getting cured from the maladies of the past. Organizations that do not embrace these truths will find it difficult to thrive, and potentially, survive given the results that the deadly diseases produce.