BUILD BACK BETTER

SHORT-TERM THINKING FOR MANY BUSINESSES TO A BUILDER MENTALITY IS STIFLING GROWTH THEY NEED TO RETURN

- DAMIEN MARTIN

To maximize shareholder value, executives need to focus less on maximizing shareholder value. It’s that paradox that led Dan Adams, founder and president of the AIM Institute to write “Business Builders: How to Become an Admired & Trusted Corporate Leader.” With so much emphasis placed on quarterly earnings reports, leaders lose sight of long-term growth and goals, things that really build the foundation of a healthy and thriving enterprise that’s self-sustainable. To counter this, they – and the boards that hire them – need to rethink their strategies and focus on leaving a stronger company than they inherited.

“When you got that promotion, you were not handed a laurel wreath,” Adams says, “You were handed a trowel.”

PRIMARY FOCUS

The trouble with putting so much attention on quarterly earnings reports is you’re looking back at the previous three months instead of looking ahead to the long term. Developing a new product or service that delivers value to customers – and thus makes for a more valuable company – can take years, and it can cost money upfront. Those are not things that necessarily jibe well with a good quarterly report, but they make a huge difference over time. That’s not to say those quarterly reports don’t matter, but there’s nothing leaders can do to change the past.

“You can’t ignore that, but you have to decide where your primary focus is,” Adams told BOSS.

“You know, if you’re in target practice with a bow and arrow or a rifle or something, you can’t have two different targets, right? You have to pick your main target.”