Equilibrium in Leadership Capability and Capacity Will Ensure 'Calm & Steady' Growth!

The way to ensure and maximize long term bottom line and top-line growth is to achieve equilibrium between in Leadership 'Capability' and 'Capacity.' Before we dive into what these mean let me briefly explain what I mean by 'equilibrium'. If you were to Google the word equilibrium it will be defined as "...a state of balance or a stable situation where opposing forces cancel each other out and where no changes are occurring. An example of equilibrium is when you are calm and steady."

I am an economist by training and learnt very early on that all markets, free markets anyways, are in a constant motion to achieve balance. For example demand and supply are in constant motion to find balance and when they do then 'supply = demand' and we have 'equilibrium'. If supply moves out of sync to demand or vice versa then, 'prices' and 'quantities' start a 'dance of motion' where supply eventually equals demand and force markets to equilibrium. Simple, right? Well, not quite! There are a myriad of variables that are at play, some independent and some random but many controlled and by design, that allow governments and economies minimize the uncertainty in 'when' and 'what' leads to markets being stormy and bumpy.

What is to markets and macro economics is also very analogous to what drives top-line and bottom-line growth inside organizations. What 'supply' and 'demand' are to markets is what 'Capability', i.e., "the power or ability to do something", and 'Capacity', i.e., "the amount that something can produce", are to Leadership decisioning and direction'ing within the organization. When these two are in equilibrium then, and only then, can we ensure 'calm and steady' organizational growth.

However, unlike economics, the science of Leadership development has not done its diligence. It has not provided businesses with variables to control the 'Capability' and 'Capacity' of leadership such that they are measurable and predictable. This lack of understanding leads to the inability to prescribe as to how much to dial-up each component in order to achieve top-line and bottom-line growth that is both maximized and sustained.

All existing techniques evaluate leadership capabilities alone and that too in a partial manner. The evaluation happens only in the context of the leader alone. There is never an attempt to equip the leader with ways of improving themselves and their businesses at the same time. There is nothing that evaluates the capacity of leadership. Further, nothing that ties improvements or declines in leadership capability and capacity, in causal ways, to business performance.

Good news is that was then and this is now! Things have changed as there is a 'modern leadership' movement afoot. A movement where this lack of measurement and accountability is addressed via:

• Step #1: Upgrading evaluation of leadership to include attributes of capability and capacity

• Step #2: Creating new age analytics that ensure the accuracy (validity) of these attributes to predict top-line and bottom-line impact

• Step #3: Activating a decisioning engine that catalyzes organizational consistency (reliability) in delivering evidence based, prescriptive, leadership interventions that can be tied to driving top-line and bottom-line business metrics

It is high time that we shift our mindsets to imagine a world where there is more accountability and control of leadership capability and capacity because that world is already here. It is our obligation, as stewards of organizational growth, to not rest till we achieve the sophistication and maturity that the federal reserve has in controlling trillions of $'s of growth. We now have modern leadership capabilities for a modern leadership world where we can measure attributes of Leadership Capability and Capacity such that we can control these two to achieve the equilibrium state that will guarantee calm and steady organizational growth.

Intrigued?

Reach out as it is time for your Leadership Capability and Capacity to flourish, burgeon and boom!