In this episode of the Thoughtful Entrepreneur, your host Josh Elledge speaks to Fortuna Advisors’ Gregory Milano.
Fortuna Advisors works with companies to help them embrace leadership culture. As companies grow, they need more help in behaving like they’re in it for the long haul. If you set the bar low, it becomes too easy to reach your goal. Shoot higher and set ambitious goals for your team to try to achieve. This will curb the mediocrity of setting the bar low.
First of all, set a measure of performance that’s a single and complete measure. How Fortuna does this is to measure the cash profits of a company against the expected return of the investors. Once you measure this value, you should measure it against last year’s performance, not ‘the plan.’ Better is always the goal, so you need to compare these KPIs against your plan for the new year and how it might compare to previous performance.
Even if your goal is to optimize things for your investors, Gregory explains, you need to care just as much about both the employee and the customer experience. The only way to do this is to care about innovation. Companies that innovate and speak on social issues and advocate for their customers, employees, and communities tend to see massive growth and revenue.
Your goal should always be to make your company a better version of itself. If you don’t actually pay attention to what needs to innovate to grow your business, it won’t, plain and simple. Gregory shares a story about a medical tech company his team worked with that pivoted from prioritizing stock buybacks to focusing more on research and development. Making these changes added services to their product-based offerings to keep revenue going. The results were staggering. Their revenue shot up, client and employee retention went up, they grew their team and client base, and went on to help even more patients. Not only did the business grow and see unprecedented success, but their positive impact on the world grew, too. This all came with a pivot that focused on leadership culture.
The key is to be willing and able to embrace change. Innovation isn’t always easy or simple to attain. You have to commit yourself to ambitious excellence and be open to new systems. This takes aligning yourself and your team with leadership culture, and this is where Fortuna Advisors can help.