Leadership that manages for the long-term
Like many of us these days, I woke up this morning craving some positive news in the midst of our current economic instability. Just as I was sitting down to write, our UPS delivery arrived for the day. The driver is always friendly and at the same time efficient – never a wasted motion. I was somehow reassured both by the normalcy of the delivery and also by thinking about the company behind it – United Parcel Service (UPS). This is a company that does not make it into the news for any spectacular short-term gain, but is known for its steady and consistent growth.
I put on my organizational culture hat and thought that UPS is most likely a company with a strategic cultural driver of commitment to a long-term vision. With this kind of driver in place, leaders are guided to balance their decisions concerning a possible short-term business gain against how well the decision will help the company achieve its long-term strategies. Most likely, some portion of profit is re-invested into development of new products or services; and, leaders probably consider the needs of all stakeholders when making strategic decisions. In the long-run this approach helps the company maintain a stable and committed workforce through good and bad business cycles.
Thus, I was not much surprised when I found the current CEO of UPS, Scott Davis expressing similar views in a recent interview with the Atlanta Journal & Constitution (Q&A / Scott Davis, Chief executive officer of UPS by Rachel Tobin Ramos, 9/20/08)
“We’re not really managing for the next quarter but many years into the future… It sounds folksy, but we really think our job is to leave the company in better shape for the next generation…We all feel very much involved in the outcome of this company (UPS). We still have about 30 percent of the company owned by insiders, both active employees and retirees.”
I do feel more positive about the potential of our country after thinking about UPS and the model it offers future company founders and the leaders of today. We need to find successful models to guide us in how to transform our short-term gain focus into personal and organizational visions that balance what is good for today with what is good for the long-term.
