Several months ago, I attended an event to celebrate the professional excellence of Central Ohio executives. When I entered the sparsely lit, underground garage, I decided to be strategic about where I would park to avoid congested traffic following the event. I spotted the perfect space… one that might save a few minutes at the end of a very long day.
Before I backed my car into the coveted spot, I assessed my surroundings, mentally gave myself the “all clear” sign and proceeded to park. Suddenly I was startled by a loud bang.
My heart raced, I put the car into park and I exited the vehicle to evaluate the situation. I thought I had been cautious in looking out for potential hazards. However, I had backed into a massive, concrete post that blended with adjacent surroundings and wasn’t visible within my vehicle’s blind spot. Because I had failed to expect the unexpected, the unscathed post won as evidenced by the significant cost incurred to repair my SUV.
This experience provided an excellent opportunity to ponder different types of blind spots within business and how they can cause a collision course within our careers.
It is estimated that 30 percent of executives are toxic leaders. They have blind spots. They don’t see that their negative leadership styles prevent their teams from optimizing organizational performance. Other leaders have communication blind spots that directly correlate with a poor ROI on their human capital. Regrettably, the list of leadership blind spots is vast.
Clear eyes for making deals
High-cost blind spots can exist when executives are engaged within M&A activities. I recall a time when our corporation was involved in an opportunity for market share gain. The development officers were “over the top” excited about the high-value possibilities expected from this deal. As is often the case with M&A, time was tight with pressing deadlines, the multiple contracts were complex, and in this instance, the work of the proposed entity represented uncharted waters for our company.
When the deal was done, celebrations ensued, and, within a matter of months, the new business enterprise began to falter. Our multi-disciplinary team had reviewed the proposed contractual language for proper business terms. Amid our haste and naïveté, however, we didn’t slow down long enough to ask ourselves a vital M&A question: “What language needs to be in the contract that is currently missing?”
Our blind spot of failing to expect the unexpected contributed to a bad business outcome.
Be purposeful; learn from the past
As you find yourself in the adrenaline rush of M&A activities, I encourage you to be on the alert for blind spots. Be purposeful in expecting the unexpected. Document your experiences from each successive deal and learn from any mistakes. Don’t take for granted any aspect of the transaction and work closely with all team members, not only to review the “ink on paper” of the proposed contracts, but also to include the “must have” business terms and associated language that can position the new business enterprise for success.