
Most companies are carrying a business unit, product line, or market position that the leadership team privately knows is not working.
Not failing dramatically. Just not working.
It generates enough revenue to justify keeping it. It has internal champions who built it. Killing it feels political. Fixing it requires admitting the original thesis was wrong. Doubling down requires conviction no one wants to own.
So the decision gets deferred. Quarterly. Annually. Until the cost of delay exceeds the cost of the decision itself.
This is the moment most boards and CEOs arrive at later than they should.
The question is not complicated: Kill it, fix it, or double down?
But answering it honestly requires three things most leadership teams avoid in combination:
1. A clean view of true economics. Not allocated revenue. Not blended margin. The actual contribution this unit makes — or costs — when stripped of internal transfers and optimistic forecasting.
2. A decision framework with a deadline. Not a strategy review. A fixed point at which a specific person makes a call with defined criteria. Without that structure, the conversation loops indefinitely.
3. The willingness to separate analysis from attachment. The people closest to the asset are rarely the right people to make the call. That is not a criticism — it is a structural reality.
The companies that compound well over time are not the ones that never make mistakes. They are the ones that resolve ambiguity faster than their competitors.
A €10m decision sitting in limbo for eighteen months is not a conservative choice. It is an expensive one.
If your portfolio has something in that grey zone, the decision is already overdue.
#businessdecisions #leadershipchallenges #strategicplanning #businessstrategy #decisionmaking
Not failing dramatically. Just not working.
It generates enough revenue to justify keeping it. It has internal champions who built it. Killing it feels political. Fixing it requires admitting the original thesis was wrong. Doubling down requires conviction no one wants to own.
So the decision gets deferred. Quarterly. Annually. Until the cost of delay exceeds the cost of the decision itself.
This is the moment most boards and CEOs arrive at later than they should.
The question is not complicated: Kill it, fix it, or double down?
But answering it honestly requires three things most leadership teams avoid in combination:
1. A clean view of true economics. Not allocated revenue. Not blended margin. The actual contribution this unit makes — or costs — when stripped of internal transfers and optimistic forecasting.
2. A decision framework with a deadline. Not a strategy review. A fixed point at which a specific person makes a call with defined criteria. Without that structure, the conversation loops indefinitely.
3. The willingness to separate analysis from attachment. The people closest to the asset are rarely the right people to make the call. That is not a criticism — it is a structural reality.
The companies that compound well over time are not the ones that never make mistakes. They are the ones that resolve ambiguity faster than their competitors.
A €10m decision sitting in limbo for eighteen months is not a conservative choice. It is an expensive one.
If your portfolio has something in that grey zone, the decision is already overdue.
#businessdecisions #leadershipchallenges #strategicplanning #businessstrategy #decisionmaking
Shared bySage Tan - 23 days ago
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