The VisionaryDecisiveness Matrix.

By Thomas R. Schori, Ph.D., and Michael L. Garee, Principals, Millennium Marketing Research, 808 E. Ironwood, Normal, IL 61761-5239. Tel. 309-532-8466 -

Having been in the world of business for a fairly long time, we’ve had the chance to observe:

Critical to the success of any business, of course, is to identify that which constitutes a genuine consumer need. Sure, some businesses can survive for a time by "hard selling" that which the market truly does not need. In point of fact, doing that is absolutely the wrong course for a business to follow, and such businesses don’t deserve to survive, nor will they for long.

Assuming the business has identified that which truly constitutes a market need, it appears to us that two factors determine the extent to which the business can be successful in the marketplace, viz., the extent to which its leadership exhibits:

Visionary zeal. To be truly successful (for the long-term, anyway) requires leadership that can only be provided by one with visionary zeal. This means that the leader must have the "gift" for unambiguously envisioning where the business is going and what it must do to get there, coupled with the single-minded focus, enthusiasm, and energy to ensure that it achieves the vision. In other words, the leader must have near child-like confidence that that which he or she envisions truly can be achieved. At the same time, he or she must instill enthusiastic support of that vision among the individuals who make up the business.

Visionary zeal can be found in virtually anyone of any age, although it seems to be most prevalent among younger people. The reason this is true, we believe, is because, as people age, they encounter many obstacles. Only the most zealous in their beliefs are able to continue hurdling over obstacle after obstacle, year after year. Most, even those who start off with great promise, eventually give up the race only to lie down and play dead. That need not be the case, though. Just look at Bill Gates, who no longer is a young man, but he certainly still exhibits the youthful exuberance and visionary zeal that made Microsoft the powerhouse it is today. And there are no signs of his letting up on the relentless pursuit of his vision.

Decisiveness. The leader must also be able to make decisions. Not only must he or she be able to make them, but must also create and maintain an environment in which decision making is encouraged¾ even required! That is, the leader must make a concerted effort to encourage his or her staff to dare to fail. The reality of the matter is, if people know they face a world of "hurt" if they make he "wrong" decision, they either will be slow in making decisions, will only make decisions when there is complete consensus, or will make no decisions at all. If making decisions immobilizes the leader, it surely will immobilize his or her staff. Then, watch out because time is running out for the business.

We’ve found it useful to classify businesses into one of four categories, based upon the extent to which they exhibit the two characteristics of visionary zeal and decisiveness. The descriptions in the Visionary-Decisiveness Matrix, shown below, represent our overall characterizations of the businesses falling into the various categories. Let’s look at how we view the four categories:

Visionary zeal Þ

Decisiveness ß ß

Low

High

Beginning of the end

Days of glory

Low

Final days

Fast road to oblivion

Fast road to oblivion. High on vision, but low on decisiveness. This often happens with new businesses, especially with ones that operate in an environment in which technology is changing very rapidly. A visionary sees an opportunity and creates a business to take advantage of the opportunity. Because technology is moving so rapidly, the technology initially necessary to take advantage of the opportunity has a very brief shelf life. In such an environment, hesitancy in making decisions is a sure-fire route to quick oblivion for the business. The star that rapidly brightens the skies of the world of business can just as quickly fall to earth, never again to be seen. Some of the early entrants into the computer software market are classic examples of this type of business.

Days of glory. This is the prototype of a successful business. This is the sort of business that everyone would like to create, or join. Certainly, this type of business scores high on both visionary zeal and decisiveness. These characteristics are essential for a successful, thriving, growing business, whether it is a newcomer (like Yahoo! and Dell) or an old timer (like Boeing and GE).

Beginning of the end. Low in visionary zeal, but high in decisiveness. Such a business may long have been the epitome of success. Typically, this is what happens when the visionary entrepreneur gives up the reins of the business to "professional managers." He or she may give up control of the business by taking it public. In that case, stockholders may believe that they can squeeze out more profitability if professional managers are brought in to assist (or supplant) this wild-eyed zealous visionary who created the business. And, you know what, those professional managers probably can increase profitability, at least in the short term. That zealous visionary Steve Jobs thought he was doing Apple a favor by bringing professional management, in the form of John Sculley. How wrong he was! Instead of providing Apple with renewed growth and vigor, Sculley actually set the stage for the beginning of the end.

The final days. Low in both visionary zeal and decisiveness. Truly a losing combination. The sad reality is, though, that most businesses probably fall into this category. Professional management has degenerated into bureaucratic management, or, just as bad, management by committee. Such businesses refer to themselves as operating within a "mature" industry. This, they believe, explains why they’re not growing (or why they’re declining). It’s because they’re in a mature industry, not because of anything inherently flawed in the business operation. In fact, however, the business operation is flawed, sometimes quite badly.

It certainly is not inevitable that a business within a mature industry can’t grow. Consider what has transpired for a couple of companies within the U.S. tobacco industry, which for decades has been considered a mature industry. In the past couple of decades, Philip Morris went from 4^th place to dominating the industry. That they were able to accomplish this feat in spite of the fact that they operate within a mature industry is due to the fact that they exhibit high levels of both vision and decisiveness. That is, Philip Morris, in our classification scheme, must be considered as in their "days of glory." In that same time period, R. J. Reynolds fell from industry dominance to a distant 2^nd place. To us, it looks as though they represent a business that is low both in vision and decisiveness, and thus are in "the final days."

A simple warning. Businesses that lack vision and decisiveness are going to find themselves on a steady course of decline and ultimate failure. To succeed in the initial stages of business, as well as in the long run, a company’s leadership must exhibit a high degree of vision and decisiveness. And, they must also encourage staff to be decisive, i.e., to take calculated risks. Coupled with having tapped into a genuine consumer need, it really is as simple as that.