Maintain a clear sense of a company's core focus and identity.
A company is tasked with creating and maximizing value profitably in its domain over time, within the bounds of the law, while following a code of ethics.
The last two decades have witnessed intense politicization and polarization in the public square. Norms and positions shift overnight. New mantras appear suddenly, and everyone – individuals and institutions – is expected to adopt them. In some ways, these become litmus tests. Depending on a company’s prominence, its leaders are expected to pass these tests in various forums and the media.
Most executives have chosen the path of least public resistance and adhered to whatever the prevailing cause may be. This has included public statements of support and re-orientation of core operations. It has occurred on issues of social and cultural concern and geopolitical conflicts. There are, however, never-ending requests to take a side, and as certain issues have demonstrated, there is a lack of clarity on what side to take.
In a changing world, companies should instead adopt a mission-first orientation and return to first principles of maximizing value. This means being apolitical and not adopting public positions unrelated to the core business. Being mission-first does not mean violating the law, acting unethically, or avoiding community engagement. It does mean staying in the lane of an institution’s mission.
The impact of this approach leads to internal clarity, external consistency, and deep focus on a company’s core. This increases productivity, efficiency, and profitability.
Ultimately, more high-performing companies also mean more value for society.