Waffle words

“I’ve challenged our team to end this year at the No. 1 [sales] position in the marketplace.  If that doesn’t happen. . . my thoughts are simple:  If you’re the most profitable No. 2, it may be a better position in the marketplace.”

Yes, this is a reported quote from a real executive: Kevin Williams, the new CEO of GM Canada, at a press breakfast yesterday.  Do you have any idea what he was trying to say?  I didn’t so I asked a handful of professional friends what they thought.

In general they did not have a clue what this CEO was trying to say though one person actually thought it was a veiled threat of downsizing directed at employees.  And, they all gave a kind of resigned sigh and shrug after they’d thought about it for a few seconds.  It’s just not that unusual in the business world to read or hear statements like this.

So, in the tradition of this blog, this is less about GM and more about what it may reveal about the challenges institutions – especially public institutions – and their leaders face when their executives are out talking to the media or industry analysts.

Any of you who have worked close to a CEO knows that a team of people probably worked on this ‘positioning’ for weeks.  So it’s generally not for lack of expert advice and support.   And, it is highly unlikely that the whole event including this statement wasn’t scripted from beginning to end.  Even so:

• The statement is unclear – Our goal is to be No 1 in sales or No 2 in sales but No 1 in profit? Why isn’t it No 1 in sales and profit?
• The statement is pretty tentative – We might or might not make No 1.  Why?  Is it our strategy or our team?  We don’t know what the best position in the market is – No 1 in sales or No 2 in sales and No 1 in profit?  Is that because we think our competitors will have to buy the No 1 in sales position?

So, what is going on?  Why waffle?  Why not take a stand and clearly state the goal:

• “We will be No. 1 in profit by the end of the year”?   In that case, you’d need to signal to investors that you’re also planning for growth.
• “We will be No. 1 in sales by the end of the year”?  In this case you’d want to signal to investors that you won’t achieve the growth in sales at all costs.

So, why all this signalling?  Why wouldn’t you just state the goal completely and clearly.  Well, you need to give yourselves a little leeway, a little gray zone.   Despite all the talk after the economic meltdown in 2008 big investors are still focused on the short-term.  The next quarter is only 3 months away…  And even for potentially decisive, bold and imaginative leaders the risk of a fickle and volatile market is just too high.

And, that leaves you and me and 10s of 1,000s of customers and employees [and potential customers and employees] scratching our heads and wondering what our  business leaders are smoking?  Is it any wonder employees and customers don’t trust big Corporate?

What do you think?  And, perhaps even more importantly, if you agree with me, what can we do to change the game?

Tags: Authenticity, Employee communication, Message control, Relationship, Transparency