Most leaders are conditioned to punish a “miss” and reward a “hit.” But in an era of sustained disruption, that binary thinking is a liability.
Here is a counter-intuitive lesson from Ram Charan: GE’s former CEO Jack Welch once gave the highest bonus to a division leader who fell short of their targets.
Why? Because that leader outperformed the competition while navigating a catastrophic external environment. Other divisions hit their numbers easily because the wind was at their backs, not because they executed better.
In the latest Wharton Nano Tool, the message is clear: To survive sustained change, you must stop “sticking to the plan” and start rehearsing for reality.
The Strategic Shift:
- Kill Rigid KPIs: Sticking to unrealistic targets during disruption promotes corner-cutting and demotivation.
- Rehearse the “Pivot”: Don’t just plan for growth; practice the exact budget and personnel shifts required if a supply chain breaks (like a drought in the Panama Canal).
- Identify Blockers: Find the single individual in a critical role who is psychologically unable to grasp a new reality—and move them.
True Organizational Resilience isn’t about predicting the future. It’s about having the Strategic Foresight to build a budget that breathes and a culture that adapts.
Your Move: Look at your Q4 targets. If the market shifted today, would your current KPIs drive ethical agility or desperate rigidity?
#LeadershipDevelopment #StrategicPlanning #ChangeManagement #BusinessAgility #Wharton
Leave a comment