The Importance of Mindset Capacity for Business Success
The key to achieving business success lies in understanding the connection between mindset types, mindset capacity, and the business outcomes they generate. Certain mindset types are focused on certain types of purpose. For example, sales people are opportunistic by nature. Very often they’re not disciplined. But let’s not average. Most of the famous or infamous CEOs that make the news on a daily or weekly basis or results driven systems thinkers. By identifying the right mindset types and hiring the right people, businesses can unlock opportunities for growth.
Let’s not forget mindset capacity. Businesses that employ people capable of faster and ever more complex decisions, are likely to see economic outcome 6x more so than those who only hire at current capacity.
Looking at some examples, JPMorgan’s net income has increased over a 10-year period from 2012 to 2021 when the company hired results-driven mindset capacity ahead of projected need. The increase in net income was observed 6 to 18 months later, demonstrating the causal link between mindset types and business success.
When JPMorgan Chase & Co. Takes the gas off of results driven hiring, you usually see dips in financial performance 6 to 12 months later. Lately some of their hiring for results has been a little bit challenging. Some of the latest cycles you see with stock price as of May 2023 indicate hiring challenges at the executive level.
Similarly, AutoZone has been a stock market leader for the last 10 years because they have consistently hired mindset capacity ahead of net revenue predictions for over a decade. This shows that a proactive approach to hiring the right mindset types can lead to sustained business success.
However, not all companies get it right. Unisys is a case study of a company that has over-hired certain types of leaders, leading to a slowdown in change and an increase in bureaucratic rules, operational debt, and inflated processes. This has resulted in next to no profitability from 2012 to 2022. This highlights the importance of not only hiring the right mindset types but also maintaining a balance in the hiring process. If Unisys was a regional bank, the stock would probably be stable. It’s essential to understand that as Unisys revenue declines thy further erode hiring mindset capacity to fix the problems – aka, brain drain.
To build a healthy ecosystem, businesses need to focus on identifying the right mindset types and hiring people who possess those mindsets. By remotely calculating mindset and building a target list of leaders with higher mindset capacity than the current average, you will ensure one of the major reasons why great companies keep succeeding. If you think you’re going to hire Fred Flintstone and keep hiring more of them, good luck. Odds are against you.