Do great companies have reserve mindset capacity to handle the BS?
Step 5 – Great companies have leaders that have the reserve mindset capacity.
Companies that have reserve mindset capacity are better equipped to absorb and process more complex data and situations, and are also more skilled at predicting and prescribing outcomes. They represent less than 4% of the companies that are publicly traded. Our studies indicate less than 2% of privately traded companies and as low as 1% are in a situation of reserve mindset capacity. Reason why private companies struggle is because so many of them are start ups or don’t have mature business models in place yet. Thinking capacity and reserve decision capacity is a critical factor that sets successful companies apart from their competitors.
According to a study by McKinsey & Co, companies with reserve mindset capacity are six times more likely to succeed at transformational initiatives. This underscores the importance of assessing the mindset capacity of current and future leaders as part of any effort to drive growth and innovation within an organization.
You might be picking up on the transformation aspect of McKinsey’s work. Of course they’re going to talk about transformation because that’s what they sell. I would argue that every business is currently undergoing transformation. Maybe some regional bank somewhere in the world is not maybe somebody that sells ice or plumbing supplies. Almost everybody in the next few years will be going through transformation. It’s an overused concept overused threat. At the risk of being the boy who cried wolf I think it’s real this time. I am confident that mindset is one of the few tools that will be the catalyst for success. Not that mindset is in itself something that is successful. It’s not. It’s the decisions that come out of focusing on your A and B employees customers, etc.
What are we comparing ourselves to?
Auditing mindset capacity against a set of knowns, such as competitors, best employees, former employees, or best-in-class companies, is an important step in this process. This allows companies to identify gaps in their own leadership and better understand what mindset types are needed to achieve their strategic goals.
For example, if a company wants to expand into a new market or launch a new product, it may need leaders with a growth mindset who are comfortable taking risks and exploring new opportunities. On the other hand, if a company is focused on streamlining operations and improving efficiency, leaders with a process-oriented mindset may be better suited to lead these initiatives.
By auditing mindset capacity and identifying the specific mindset types needed to achieve strategic goals, companies can better align their leadership teams with their business objectives and drive growth and success. This requires a deep understanding of the company’s unique needs and goals, as well as a commitment to ongoing assessment and development of leadership capabilities.
Identification of the right model is important to understanding skill supply and how it relates to mindset supply and demand.
As a professional, I specialize in tackling complex challenges that are vital to the future success of a company. My expertise lies in identifying purpose-driven projects that are geared towards growth and innovation. I’m passionate about approaching these projects in a unique and creative way that reduces friction, eliminates operational debt, and positions the company for long-term success.
My focus is always on the future but not at the expense of the present challenges. – I believe that businesses should be forward-thinking and crush their existing friction in debt with a passion. By taking a holistic approach to problem-solving, I help companies uncover new opportunities for growth and development, while minimizing risk and optimizing resources.
Whether you’re looking to transform your company’s operations, expand into new markets, or develop innovative products and services, I have the experience, knowledge, and passion to help you achieve your goals. Let’s work together to build a brighter, more successful future for your company.
Next up, architecting the change. Why ecosystems of data are critical to architecting the rate change.