Feb
19
Narrow Margins = Status Quo
Filed Under Marketing | Author: Gerald Smith |
Organizations that drift aimlessly on the sea of narrow margins are distracted and obsessed by the fact they have no direction. It is the overwhelming realization of narrow margins that have paralyzed leadership and now fear has set in. Most leaders are parked at status quo. Every effort is given to simply maintain or attain that which was once status quo (a.k.a a perceived stability).
You might expect that those who sail these waters feel isolated and alone. However, the opposite is true, these leaders actually see themselves as very busy and are scurrying about the boat examining every opportunity for what they perceive as any potential for change. Truth is - they are now highly vulnerable as they find themselves over-committed to finding their way back to status quo. And yet they are blind-sided when mutiny occurs and they are forced to walk the plank.
“You will either step forward into growth or you will step back into safety.” Abraham Maslow.
The solution is found by sailing vigorously and passionately directly through the narrow margins. Do whatever is necessary to increase the margin and only then will you find stability along with the space and time for true insight and innovation. Have you been sucked in? Are you, or those around you, unwilling to right-size, down-size, up-size, trial-size…? The solution rarely is found in identifying ways to increase revenue. Instead, focus first on increasing your margins. As a result, increased revenues will follow. We are taught to view the bottom-line as simply “the result of our efforts”. It is actually the beginning. And by which all things will ultimately be measured.
PS. By the way, for-profits and non-profits are no different when it comes to margin, they only differ by what they do as a result of their margin.
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