book.chapter The importance of speed

In the contemporary business landscape, the acceleration of operations due to technological advancements has significantly transformed the way businesses operate. Nowadays, consumers expect rapid services, from swift shopping experiences to immediate delivery, and access to information at unprecedented speeds. This urgency to be the first in the market necessitates businesses to operate faster and more efficiently than ever before. The exhilaration of speed is not only enjoyable but also profitable, and it is anticipated that the demand for quick operations will only escalate in the foreseeable future. Research has compellingly demonstrated a correlation between the velocity of business operations and their outcomes. When leaders adopt a quicker pace, they are able to identify problems more promptly and catch emerging trends earlier. This enables the crafting and execution of effective responses to issues at a faster rate, allowing organizations to adapt swiftly and make rapid changes. It is crucial to understand that speed, in itself, is not the ultimate goal but a means to add more value as a leader. Data from over a million 360-degree feedbacks has conclusively shown that speed is a potent indicator of a leader's effectiveness and the success of an organization. Speed serves as a source of sustainable competitive advantage. This is evident in the widespread adoption of Agile development methodologies among software developers, which enhance collaboration and shorten development schedules. Similarly, Lean manufacturing and production methodologies, which focus on eliminating waste and unnecessary processes, enable organizations to produce and deliver products more rapidly. The pace at which an organization operates is largely influenced by its employees, and the speed of the leader plays a significant role in setting this pace. Leaders who operate at a brisk pace signal that speed is valued and sought after within the organization. However, leaders aiming to increase their organization's speed must be wary of two major pitfalls. The first is the dilemma of prioritizing speed over accuracy, which can be challenging. Speed without quality and precision is counterproductive. As a general guideline, leaders who can make swift and accurate decisions set a precedent that encourages others to balance their speed with accuracy. Effective leaders are those who excel in making rapid, yet sound decisions. The second pitfall is the illusion of burnout, which suggests that a faster pace leads to increased stress. Andrew Burnstein, author of "The Myth of Stress," studied this phenomenon and concluded that stress is not caused by activities or the corporate environment, but rather by our emotional reactions to these situations. This explains why two individuals performing the same task may have different perceptions of its stressfulness, with one finding it overwhelming and the other viewing it as a stimulating challenge. The advantages of operating at a high speed are manifold and significant. High-speed work environments lead to increased employee engagement, as employees find their work more enjoyable due to the clear accomplishments achieved. When leaders act quickly and encourage others to do the same, employees are more likely to take on challenging projects and go the extra mile. Research indicates that in the average company, only about 16 percent of employees are willing to take on greater responsibilities. This ratio jumps to 63 percent in companies where leadership speed is evident. Moreover, there is a direct correlation between the speed of leaders and the performance ratings of their subordinates. When leaders lead by example, it motivates the entire team to follow suit. In summary, leadership speed fosters organizational speed, bringing about numerous benefits and advantages. There are no downsides to leadership speed, only significant and substantial upside potential. Elon Musk's business career serves as a perfect illustration of what can be achieved through speedy operations. Within two decades, Musk has founded or co-founded several successful companies, including Zip 2, PayPal, SpaceX, Tesla, Inc., SolarCity, The Hyperloop concept, OpenAI, The Boring Company, and Neuralink. Musk epitomizes the concept that leaders who operate at a high speed are valued more highly than those who are slow and deliberate. Speed is crucial for leaders, perhaps even more so than for others. As Lee Iacocca famously said, " The pace of the leader becomes the pace of the organization." Ralph Waldo Emerson also highlighted the importance of speed, stating, "In skating over thin ice, our safety is in our speed." This underscores the impact of a leader's speed on their engagement and the overall advantage it provides to organizations in a fast-paced work environment and the ever-increasing need for change.