Are We on the Same Side?

What caught my attention was this excerpt:

"Mr. Bilborough [the CEO of privately held Generation Brands] says that one of his biggest challenges is motivating employees amid uncertainty. Most companies controlled by private equity are sold within three to seven years. Senior executives receive equity, which can be lucrative. But middle managers and lower-level staffers typically don't get stock. 'You're trying to lead an organization when everybody knows we're going to be sold,' said Mr. Bilborough. 'It just hangs over them like a cloud as a constant distraction for people.'"

Exactly!

Whether it is in client companies or in consulting firms, management is always trying to get people to do the things that are good for the firm, but mutual suspicion about incentives and motives can destroy all of these efforts. When seniors and juniors (management and employees) have very different vested interests and incentives, the juniors really begin to question whether everyone's on the same side.

They begin to ask, "Is management making decisions because it's good for the company, or because it's good for them?" They go on to ask themselves, "Should I commit my efforts to doing what's good for my firm, or should I worry about myself?"

By the way, don't think that I'm talking only about "them." These tensions apply to all of us, even if we manage only a small project team. They apply even if we don't manage anybody, but just have to collaborate with others on a project or across departments.
People will always be asking of management (or you) two questions: What time frame is being used for decisions? Are we in this together or not?

The time frame issue is crucial, because it's hard to get your team to accomplish things that take time if they think that you, their manager, is acting with a shorter-term horizon.

This is not a matter of morality (like some Animal Farm chant of "long-term good, short-term bad"). It's OK to be either at different times, but you need to be honest and self-aware about which game you're playing. Managers need to learn that they rarely fool anyone else about their time frame, and it's dangerous to try to fool themselves!

We are all tempted by (and seek) immediate gratification and doing things that pay off in the short term. Underinvesting in the future is something we all do as individuals and human beings, not just as organizations. But we must not be na