The more successful an executive becomes in business is the more dangerous life becomes, for like energy, power cannot be created or destroyed, it can only be transferred from one person to another. These threats are all around both from external sources – Competitors, Politicians and Community Activists (Lobbyists) and from your inner-circle – Employees, Directors and even Family and to a lesser extend Associates. Business school fails to adequately prepare executives for success.Today Business Plan addresses strategies to deal with external threats. Planning for price wars (the under pricing or dumping of goods and services to win more market share), product improvement (the research and development, branding or combining products to increase customer loyalty), employee pinching (luring key personnel with a proven track record) and protecting business secrets (formulas, copyrights and trademarks) has become second nature, as Competitors expects such tactics. This is respectable and long-established business practices.
Another expected external threat comes from Politicians, especially if the executive has publicly chosen a side. The traditional and safe approach is to donate equal time and money to all political parties and avoid any repercussions. However, if an election race is competitive the executive may find a direct link between voting patterns and customer loyalties that may lead to a public endorsement of one party to protect the business. The Business Plan has to take into consideration that these heated elections can become violent with physical attacks on both fixed assets and human life and can linger long after the election date.
Lobbyists or Community Activists operate very much in the same manner as Politicians, backed by a constituency and promising change. Because they are single issue groups, they are many and they do not have deadlines. The executive has a difficult decision as to who to support and how often. From issues, such as, the ease of doing business, religion and sport to issues on the environment and lifestyles, there is a Lobbyist or Community Activist for each and every matter. Problems and threats surface when a particular group or issue is denied support and this can drive action against the business.
Internal threats can be the most dangerous. Employees’ unions can present difficulties, such as sabotage or strikes, during contract negotiations. Management or high level staff maybe disloyal and disclose trade secrets to others, persuaded by financial gains, career advancement or physical intimidation. Directors or Business Partners maybe planning a takeover bid or to oust the executive backed by rival elements and even, a family member maybe planning legal or other action to plot the demise of the executive.
It is the Associate or Consultant that depends on that particular executive for income that would be the most loyal. Professionals, whose interest is easy to read and to provide, can offer unbiased opinions on any situation with only the executive’s fate in mind.
Rationale
T.A.J & Associates Company Limited uses this occasion to comment on topics that have been covered, both academically and by the mainstream media, to add its opinion and point out investment opportunity, not to invoke any social action.
