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I want to examine specifically the two types of currency that every organization has at their disposal – Will and Resources.
RESOURCES – This currency is easy to calculate and is tangible. We can calculate this by means of revenus, profit, cash flow, venture capital, private equity, store prices and so on. Resources generally come from outside sources like customers, investors and these represent the sum total of all financial metrics that contribute to the health of the organization.
WILL – In contrast, is intangible and harder to measure. When we talk about will, we’re talking about the feelings people have when they come to work. Will encompasses morale, motivation, inspiration and commitment, desire to engage, desire to offer discretionary effort and so on. Will generally comes from inside sources like the quality of leadership and the strength and clarity of the Just Cause. Will represents the sum of all human elements that contribute to the health of the organization.
All leaders whether operating from a finite or infinite mindset know that resources are essential. All leaders whether finite or infinite agree that will is also essential. Can you name me one CEO who thinks their people are unimportant. The tension lies in the reality that Will and Resources can never be equally prioritized. There are always circumstances in which one is pitted against the other, times in which leaders must decide which one to sacrifice. The question; “Which one will they choose?” Every leader has a bias!
Most of us have sat in corporate meetings in which leaders have gone over their agenda – it looks something like this: 1. Growth 2. Market Share and Demographic targets 3. Our People. This illustration shows there are at least two other items that are more important than “Our People.” How leaders list priorities illustrates their bias and their bias influences how decisions are made. Finite Leaders focus on score. These decisions impact people via layoffs and downsizing operations. It is easier to calculate the immediate savings when operating from a bias of SCORE!
Infinite Leaders look ahead to minimize profit lose versus sustaining human capital. The solutions may take longer but, when people are valued time is not always a priority. Thinking beyond the hard times, an infinite minded leader is willing to wait the quarter or the year or more savings to accumulate if it means safeguarding the people. These leaders understand that people drives discretionary effort, problem solving skills, imagination, and teamwork. These things are necessary for the future of the organization. The bottomline that we all understand is that when we lose experienced staff while waiting for new staff to be onboarded and acclimated to the new culture impacts productivity and profit margins. If you factor in low morale in high-turnover jobs it should make you a bit curious as to whether the money saved was actually worth it.
BIG TAKEAWAY
As a leader we can control how we spend and invest our resources. However, we have a lot less control over how our resources are made. Politics, economic cycles, market fluctuations, customer preferences, technological advancements, weather, and all other forces can create havoc on our ability to amass resources. On the other hand any organization can create an endless supply of Will. Leaders are in total control over the source of Will. Will is generated by company culture. We all understand that culture eats vision for breakfast!
LINKS
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Game Theory Resource Books
Game Theory for Business by Paul Papayoanou
Finite and Infinite Games by James Carse
The Infinite Game by Simon Sinek
List of Games in Game Theory – https://en.wikipedia.org/wiki/List_of_games_in_game_theory
Q&A – Contact me at ShepherdsAdvantage@gmail.com
Music: “Gratitude Mood” by David Arivett. You can learn more about his music by clicking on his name. THANKS DAVID!
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