Bestselling author Jim Collins says leaders manage differently when considering a 10+ yr time horizon vs. what is best right now.
The challenge is maintaining a long-term outlook when leading a business day-to-day.
Here's the first of 3 Big Ideas for reaching your firm's full potential.
Strategic vs. Opportunistic Business
A key, but often overlooked component of managing for long-term value differentiating between strategic business and opportunistic business.
Strategic business is business that is worth more than the fees you charge for it. It could be a client where you expect significant follow on business. It could be an influential client you are counting on for credibility or referrals. It could be a lead customer in a new market.
Opportunistic business is everything else. There's nothing wrong with opportunistic business. We all take on opportunistic business.
The critical point is knowing the difference. You never want to put opportunistic business ahead of strategic business. Yet, companies do this all the time.
When everyone at your firm knows the difference, a lot of decisions and priorities get managed closer to the client. Your firm becomes more responsive and transparent to clients. It also becomes easier to manage.