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The leader must act with balance, even in difficult times, without neglecting the long term so that the company is increasingly respected – Photo: Shutterstock
When I think of today's corporate leader, I remember the classic image of the professional balancing trays between passenger tables on a vessel in rough seas. The leader of a company needs to convey confidence to all stakeholders even under the turbulence of an increasingly interdependent world. At the beginning of 2023, leaders are encouraged to reflect on their role in strengthening the reputation of companies, in adverse scenarios of high uncertainty. These are questions that arise in the light of the potential for damage caused by their decisions to the image and reputation of strong brands, not to mention the damage caused to the economy, the market, and the shattering of confidence, which throws more uncertainty into the corporate world in relation to its controls and metrics.
I see it as an opportunity to rethink the influence of the management model focused on the short term, the pressure for immediate results, the seduction of bonuses and even the emphasis on the individual agenda in decisions that put at risk an entire business structure with countless ramifications. What are the expectations of stakeholders and what postures and attitudes are expected from those who lead?
This new CEO is required to have a holistic view of the company's performance and of his own role. Managers who seek a multistakeholder perspective and who are guided by governance based on values practiced in everyday life, draw up planning with a long-term vision, value good governance, ethics and the daily practice of the company's values, dedicating time to strengthening the organization's culture. And that means saying some “no”, leaving aside easier paths, and, on the other hand, incorporating the intersection between the PF (Individual Person or CPF) and PJ (Legal Entity or CNPJ), which become a single body , the “leader-company”, where the communicating vessels are permanent.
“There is no doubt about the importance of cash flow and results. The difference is how they are achieved.”
Paul Polman, in his book Positive Impact, co-authored with Andrew Winston, narrates the proposed acquisition of Unilever, of which he was CEO at the time, by Kraft Heinz. It was up to him to face the dilemma: whether or not to deliver a company with a culture of valuing all interested parties, all stakeholders, to a buyer known for its culture strongly focused on cutting expenses, and with shareholder-oriented management. There is no doubt about the importance of cash flow and results. The difference is how they are achieved. By choosing not to, the author allowed the company to continue bringing to everyone the positive impact that gives the book its title.
In a company with a strong corporate culture, essential for success, everything that deviates from what is the essence and agreed purpose is automatically rejected. And so consistency is maintained in the relationship with its different audiences, which is of great value in preserving its reputation. In leading this process, the leader focused on reputation is aware that his role is to manage complexities, acting in the short term without neglecting the long term and the consistency of results, resisting immediate pressures. When you don't act like this, you disconnect from what the company has as its greatest success factor, the engagement and trust of its audiences. By persisting, like the professional described at the beginning, balancing himself even in troubled waters, the company is increasingly respected and admired, which, in the end, generates a positive impact on the business.
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Lorival Luz It is member of the Board of Directors of Inter&Co
The signed articles reflect the opinion of the authors