Empathy and Execution: Balancing People and Performance

Great leaders understand that true success comes from balancing empathy and execution. While achieving results is critical, how you achieve them matters just as much. Empathy fosters trust and collaboration, while execution drives progress. When trading conditions are tough, this balance becomes even more important. Empathy helps leaders connect with their teams, addressing concerns and maintaining morale, while a sharp focus on execution ensures that the organisation stays on course. Together, these qualities enable leaders to guide their teams through challenges, creating sustainable success even in the most difficult circumstances.

Why Empathy and Execution Matter

Empathy without execution can lead to stagnation, while execution without empathy risks burnout and disengagement. Combining the two enables leaders to:

• Build Stronger Teams: Empathy creates psychological safety, encouraging open communication and collaboration.
• Drive Sustainable Performance: Execution ensures that goals are met without sacrificing the well-being of the team.
• Navigate Challenges Effectively: Balancing empathy and execution helps leaders maintain morale while addressing tough decisions.

Consider Howard Schultz, the former CEO of Starbucks, who balanced empathy and execution by providing employee benefits like healthcare while driving the company’s rapid expansion and financial success.

The Role of Empathy in Leadership

Empathy is more than just understanding others’ feelings; it’s about acting on that understanding to support your team. Leaders who lead with empathy:

1. Listen Actively Create space for honest conversations and truly hear what your team is saying.
2. Recognise Challenges Identify the obstacles your team faces, both professionally and personally.
3. Show Appreciation Acknowledge and value the contributions of each team member.

Executing Without Compromising Empathy

Execution ensures that strategies and plans are brought to life. To balance this with empathy:

1. Set Clear Expectations
   • Define what success looks like for your team.
   • Provide clear goals and deadlines while considering individual workloads.
2. Support Accountability
   • Hold team members accountable for their responsibilities without micromanaging.
   • Offer guidance and resources to help them succeed.
3. Celebrate Wins, Big and Small
   • Recognise achievements regularly to maintain momentum and morale.

Practical Tools for Balancing Empathy and Execution

1. The Check-In Framework
   • Begin meetings with a quick personal and professional check-in. This encourages team members to share how they’re feeling and what they’re focused on.
2. Empathy Maps
   • Use empathy mapping to better understand your team’s needs, pain points, and motivations. This can guide how you delegate tasks and set priorities.
3. Execution Dashboards
   • Create dashboards to track progress on goals. Combine metrics with qualitative feedback to balance performance tracking with team well-being.

Case Study: Satya Nadella at Microsoft

When Satya Nadella became CEO of Microsoft in 2014, the company was facing declining relevance and internal silos that hampered innovation. Nadella brought a renewed focus on empathy and execution to revitalise the organisation.

• Empathy: Nadella emphasised a growth mindset, encouraging teams to collaborate, innovate, and learn from failures. He initiated cultural shifts by fostering openness and inclusivity, recognising the challenges employees faced during the transition.
• Execution: Nadella set clear priorities, including a pivot to cloud computing and artificial intelligence, which aligned with future market demands. He held teams accountable while providing the resources needed to succeed.

Outcome: Under Nadella’s leadership, Microsoft not only regained its innovative edge but also became one of the most valuable companies in the world, demonstrating how balancing empathy with execution can drive both cultural and financial success.

Your Leadership Challenge

Reflect on your approach to empathy and execution. Are you leaning too heavily on one side? Use the tools above to find balance and strengthen both your team’s well-being and performance.

The Pivot Point: Knowing When to Change Course

In leadership, one of the most critical decisions you’ll face is knowing when to pivot. Staying the course may feel like a demonstration of commitment, but sticking too long to a failing strategy can lead to wasted resources and missed opportunities. When trading conditions are tough, this ability becomes even more essential. Adapting to shifting circumstances, recognising new opportunities, and making tough calls can mean the difference between survival and failure. Great leaders understand that flexibility, paired with strategic insight, is what enables organisations to navigate uncertainty and emerge stronger.

Why Knowing When to Pivot Matters

Pivoting isn’t a sign of failure; it’s a strategic choice to adapt to changing circumstances. Leaders who pivot effectively can:

• Seize New Opportunities: Redirect resources to areas with greater potential.
• Avoid Sunk Cost Pitfalls: Focus on future outcomes rather than past investments.
• Stay Competitive: Respond swiftly to market shifts or operational challenges.

Consider Netflix, which began as a DVD rental company but pivoted to streaming at precisely the right time. This bold shift allowed them to outpace competitors and redefine their industry.

Signs It’s Time to Pivot

Recognising the need to pivot starts with observing key indicators:

1. Diminishing Returns Are your current efforts yielding lower results despite increased investment?
2. Market Shifts Has the environment changed in a way that makes your strategy less relevant?
3. Team or Customer Feedback Are internal or external stakeholders signalling dissatisfaction or suggesting alternatives?
4. New Opportunities Has a viable alternative emerged that aligns better with your goals?

How to Pivot Strategically

A successful pivot requires careful planning and execution. Follow these steps to change course effectively:

1. Assess the Situation
   • Evaluate your current strategy against measurable outcomes.
   • Analyse the opportunity costs of staying the course.
2. Define the New Direction
   • Clarify what the pivot entails and its intended goals.
   • Ensure alignment with your overarching mission and values.
3. Communicate Clearly
   • Share the rationale behind the pivot with your team and stakeholders.
   • Address concerns and reinforce the benefits of the new direction.
4. Execute in Phases
   • Implement the change gradually, minimising disruption.
   • Monitor progress and adjust as needed.

Staying Resilient During a Pivot

Pivots can be challenging, but resilience will help you and your team navigate the process. Here’s how:

• Acknowledge Uncertainty: Be honest about risks while maintaining optimism.
• Foster Collaboration: Involve your team in problem-solving and decision-making.
• Celebrate Small Wins: Recognise progress to keep morale high.

Practical Tools for Evaluating a Pivot

1. SWOT Analysis Use a SWOT analysis to evaluate your current position and potential new directions. Identify strengths, weaknesses, opportunities, and threats.
2. Opportunity Scoring Score opportunities based on criteria such as alignment with goals, resource requirements, and potential impact. Prioritise the most promising options.
3. Scenario Planning Create scenarios to understand potential outcomes of both staying the course and pivoting. This helps mitigate risks and clarify the best path forward.

Case Study: Steve Jobs and the iPhone Pivot

Steve Jobs faced a pivotal decision during Apple’s development of the iPad. The company had already invested heavily in creating a tablet device when AT&T approached with an opportunity to collaborate on a mobile phone—something Jobs had long wanted to pursue but hadn’t prioritised due to market resistance.

Despite the substantial resources already committed to the iPad, Jobs recognised the potential of the iPhone. He deprioritised the tablet project and redirected Apple’s focus and resources to developing the iPhone instead.

The result? The iPhone became one of the most successful products in history, redefining Apple’s future and reshaping the tech industry. This decision exemplifies the power of a well-timed pivot and the ability to focus on the bigger picture.

Your Leadership Challenge

Reflect on a current strategy or project. Are there signs it might be time to pivot? Use the tools above to evaluate your options and determine whether a change in course could unlock greater success.

What Is an HR Business Partner, and Why Do They Matter?

An HR Business Partner (HRBP) is a strategic role within the human resources function, designed to embed HR expertise directly into the business. Unlike traditional HR roles that focus primarily on administrative tasks, compliance, and policy implementation, HRBPs are intended to work closely with specific business units or departments. Their purpose is to align HR initiatives with the organisation’s strategic objectives, ensuring that people strategies directly support business performance.

HRBPs are there to provide tailored HR support to business leaders, acting as advisors on workforce planning, talent management, organisational design, and employee engagement. The goal is for HRBPs to build strong relationships with the teams they serve, enabling them to deliver insights and solutions that improve performance, enhance employee experience, and drive value across the organisation.

In theory, the role of the HRBP represents a significant evolution in how HR contributes to business success. By working alongside operational teams, HRBPs should bridge the gap between traditional HR priorities and the real-world needs of the business. However, the effectiveness of an HRBP depends entirely on their ability to understand the business they are partnering with, which is where challenges often arise.

The Advent of HR Business Partners: Bridging the Gap or Widening the Void?

While the introduction of HRBPs was a step towards aligning HR with the strategic goals of businesses, the role often falls short of its potential. All too frequently, HRBPs lack the operational knowledge necessary to genuinely partner with the business units they are assigned to support.

I often encounter HRBPs who have little understanding of what the business department they are supposed to partner with actually does or how it operates. They lack insight into the department’s day-to-day challenges, key performance drivers, and operational realities. Instead of closing the gap between HR and the business, this disconnect can inadvertently widen it, creating frustration on both sides and undermining the very purpose of the role.

Upskilling HR Business Partners to Understand the Business

While it may seem obvious that HR Business Partners (HRBPs) need a deep understanding of the departments they support, in practice, this level of integration and knowledge-building often doesn’t happen. Many organisations assume that HRBPs can gain the necessary insight simply through conversations or high-level briefings, but this approach rarely provides the depth required to make a real impact.

Because HR professionals tend to be people-oriented, it is often assumed they will fit right in and that the department will welcome them with open arms. On the face of it, this might even appear to be the case—initial relationships may seem smooth, and the HRBP might quickly establish rapport. However, even with a warm reception, the HRBP will be far better placed to support the department if they are fully immersed in its operations. This means not just attending meetings and shadowing team members but, where relevant, aligning their working patterns with those of the department. For example, if the department works shifts, the HRBP should occasionally work shifts as well. By experiencing the realities of the team’s schedules, challenges, and culture firsthand, they can gain insights that are impossible to achieve from a distance. This level of commitment demonstrates to the team that the HRBP is invested in understanding their world, building trust and credibility while equipping them to provide more effective and tailored support. Without this level of immersion, even the most personable and well-intentioned HRBP will struggle to move beyond surface-level engagement.

Why Qualification and Business Acumen Are Non-Negotiable

If you are investing in HRBPs, you must insist they are genuinely qualified to partner with your business. This doesn’t just mean being proficient in HR processes; it means having a deep understanding of the business itself. An effective HRBP should speak the language of the teams they support, understand their pain points, and propose solutions that make both operational and commercial sense.

Some of the best HRBPs I have encountered didn’t come from a traditional HR background. Instead, they started their careers on the shop floor or in operational roles and later retrained in HR. This experience gives them an invaluable edge: they’ve lived the realities of the business, understand how it works, and can connect with frontline employees. They don’t just bring theoretical HR knowledge—they bring practical insights that translate into meaningful, actionable support.

In contrast, career HR professionals without this exposure may struggle to gain the trust and credibility of the teams they support. This isn’t a criticism of HR expertise, but rather a recognition that to truly partner with the business, HRBPs need more than HR knowledge—they need business acumen.

Building Better HR Business Partners

To realise the full potential of the HRBP role, organisations should:

1. Prioritise Business Acumen in Recruitment: Look for candidates with operational or cross-functional experience, even if their HR qualifications are still in progress.
2. Invest in Business Knowledge: Provide HRBPs with immersive training or shadowing opportunities in the departments they will support, so they can build their understanding from the ground up.
3. Challenge the Status Quo in HR: Encourage HR leaders to embrace a broader perspective, linking people strategies directly to business outcomes rather than solely HR metrics.
4. Encourage a Two-Way Partnership: HRBPs should not just provide advice; they should actively listen and engage with operational teams, demonstrating they are as invested in the success of the business as the employees they support.

HR Business Partners have the potential to transform the relationship between HR and the business, shifting it from a source of tension to a powerful driver of organisational success. But achieving this requires more than good intentions—it requires ensuring that HRBPs are equipped with the skills, knowledge, and mindset needed to truly partner with the business. When done right, HRBPs can elevate both HR and the teams they support, creating lasting value for the entire organisation.

The Hidden Cost of Remote Work – Why Leaders Are Losing Their Influence

In the era of remote work, many businesses celebrate flexibility as a productivity win. But for leaders, there’s an unintended consequence: the dilution of their influence. Without regular in-person interactions, leaders lose opportunities to connect, align, and inspire their teams in ways that foster performance and growth. This guide explores why business leaders are losing their impact and how this affects team cohesion, performance, and culture.

The Cost of Leadership Absence

Leaders play a critical role in showing the way and leading by example. Their behaviours set the tone for the organisation, creating a benchmark for how to act, think, and approach challenges. When working remotely, leaders lose the opportunity to:

• Stop, praise, and coach: In the physical workplace, leaders naturally encounter moments to recognise great work, correct small missteps, or coach someone toward a better outcome. These moments often arise informally, during chance encounters or as they observe the team in action. In a remote setting, these opportunities vanish unless actively scheduled.
• Model desired behaviours: A leader’s punctuality, professionalism, and approach to challenges are often unconsciously mirrored by their teams. Being visible—whether by rolling up their sleeves during crunch time or demonstrating calm under pressure—is harder to replicate when interactions are limited to structured meetings.

The Subtle Art of Leading by Example

Great leaders inspire action not just through formal communication but by their presence and conduct. In an office, this might look like:

• Engaging with everyone: Leaders who walk the floor, check in on their teams, and take the time to connect demonstrate accessibility and approachability. This fosters trust and reinforces alignment.
• Reacting in the moment: Leaders can immediately respond to challenges, showing resilience and problem-solving in action. Teams learn through observation, an experience remote environments rarely provide.
• Celebrating success: Small wins often go unnoticed in remote settings. In-person interactions allow leaders to stop and praise individuals or teams, reinforcing positive behaviours and morale.

When these actions are absent, teams can feel unmoored, leading to disengagement and a loss of momentum.

The Impact of Missing Visual and Subtle Cues

In-person leadership is enhanced by non-verbal communication and environmental observation. Remote work strips these tools away, making it harder for leaders to:

• Spot disengagement: A furrowed brow, slumped posture, or lack of energy in the office signals frustration, confusion, or burnout. In video meetings, these cues are often hidden or muted entirely.
• Sense cultural drift: In-person, leaders can observe how employees interact with one another, identifying early signs of misalignment or tension. Remote work makes it harder to pick up on these signals.
• Coach in real time: A quick correction or guidance offered in the moment is far more effective than a delayed conversation. Leaders lose the immediacy of teaching and course-correcting when they aren’t physically present.

Quantifying the Value of Direct Influence

Studies consistently show that the physical presence of leaders enhances performance:

• Direct interactions lead to up to a 25% performance boost compared to remote management (Harvard Business Review).
• Face-to-face communication is 34 times more effective than written requests (MIT Sloan).
• Teams with visible leadership report 30% higher engagement and 23% higher satisfaction (Gallup).

The performance gains are tied to the ability of leaders to influence directly through action, presence, and interaction.

The Cost of Lost Opportunities

When leaders are remote, they miss out on the small but impactful moments that define great leadership:

Stopping and praising: Without physical proximity, it’s harder to celebrate effort or outcomes in the moment, leading to diminished morale and motivation.

Real-time coaching: Correcting misunderstandings or guiding someone toward better performance is delayed in remote settings, which may allow small issues to snowball into larger problems.

Reinforcing culture: The visible embodiment of values—whether through work ethic, collaboration, or decision-making—is a powerful tool for alignment. Leaders lose this when they operate primarily via screens.

Hybrid Models: A Compromise, But Not a Solution

While hybrid work models allow for some in-person interaction, they are ultimately a compromise rather than a solution. As a leader, I am not a fan of hybrid approaches because they can often feel fragmented and fail to fully recreate the benefits of consistent, physical presence. However, they are better than nothing, and if a fully in-office model isn’t possible, hybrid arrangements can help mitigate some of the downsides of remote work.

Interestingly, there is evidence suggesting that employee turnover might be lower in remote or hybrid firms, which could be an argument in favour of maintaining some level of flexibility:

• A 2017 study found that companies offering remote work options experienced a 25% reduction in employee turnover compared to office-only setups.
• Research by Remote.com noted that businesses with remote and hybrid models reported higher employee retention rates from 2019 to 2022, while turnover for office-based workers increased by 11.5%.
• A Stanford University study showed that resignations decreased by 33% among employees transitioning from full-time office work to a hybrid schedule.

These findings suggest that flexible work arrangements may enhance retention by addressing employee preferences for work-life balance and autonomy.

That said, while lower turnover is beneficial, it doesn’t eliminate the challenges associated with diminished leadership influence, reduced alignment, and the loss of immediate coaching opportunities. Leaders must weigh these trade-offs carefully when designing their workforce strategies.

Embracing the Challenge

Leadership is as much about being seen as it is about communication. When leaders are visible, they can inspire, guide, and support their teams in real time, creating a culture of excellence through action. Remote work need not entirely erase these opportunities, but leaders must actively find ways to compensate for the gaps it creates.

By leading by example, praising, and coaching in the moment, leaders can retain their influence and foster the high performance that comes with it. Whether through hybrid models or increased strategic interaction, rethinking how leadership is practised in a remote world is essential for long-term success.

Sources:

1. Gallup: “The State of the Global Workplace”
2. Harvard Business Review: “Why Face-to-Face Communication is Better than Digital”
3. MIT Sloan Review: “The Power of Proximity in Leadership”

About the Author

Trevor is the Managing Partner of NorthCo, a fellow of the Institute of the Motor Industry and a member of the Institute of Interim Management. Trevor is a respected C-Suite leader, Chairman and professional Interim Leader. For over a decade, he has provided interim leadership solutions to private equity, venture capital, and asset-backed firms. Whether it’s to stabilise a business during a turbulent trading period, fill a temporary skills gap or support a management team to navigate challenging situations, Trevor’s wealth of experience and proven track record in delivering value creation and retention plans demonstrate his ability to lead and support operational management teams effectively. To find out more about his approach, explore his LinkedIn profile and read what others say about Trevor.

How HR Professionals Can Drive Strategic Priorities Beyond “Personnel” Matters

I’ve always believed that people make the difference in business—whether for good or bad. The right people in the right roles can drive extraordinary outcomes, while the wrong dynamics can bring even the best-laid plans to a grinding halt. Yet, I’ve also observed how many businesses squander the potential of a strong, operationally oriented HR professional.

Too often, HR is relegated to the rear echelons, focused on policies, compliance, and firefighting. But HR shouldn’t be confined to personnel matters—it should be forward deployed at the sharp end of the business, directly supporting strategic goals and operational needs. If businesses want a personnel manager, they should hire one and save the expense of a Chief People Officer or HR Director. But if they’re going to invest in a senior HR professional, they need to fully utilise the range of skills they bring to the table.

The challenge is that many CEOs and MDs simply don’t know how to use professional HR effectively. HR leaders often find themselves underutilised, operating reactively rather than proactively. CEOs need to ask themselves whether they are equipping their HR function to drive the business forward—or keeping them in a “personnel” box that limits their potential.

Here’s how CEOs can get HR out of the personnel shadow and forward deploy them as critical players in achieving strategic goals.

Integrate HR into Strategic Planning

The first step is to stop treating HR as an afterthought in strategic discussions. Too often, HR is brought in to “make it happen” once the plan has already been written. Instead, involve HR from the outset, giving them a seat at the table when strategy is being shaped.

• Share the strategic priorities with your HR leader and ask for their input on how people and culture can support those goals.
• Encourage HR to challenge assumptions about talent, structure, and resourcing that could undermine the plan.
• Ensure HR understands the commercial realities of the business, so their recommendations are grounded in operational needs.

When HR is part of strategic planning, they can align their initiatives with the broader goals of the business, ensuring that people-related efforts are fully integrated into the roadmap.

Define HR’s Strategic Role in the Business

Many CEOs expect HR to focus on compliance, recruitment, and employee relations—important, yes, but hardly strategic. To unlock their potential, CEOs must clearly define the role they want HR to play in achieving the company’s goals.

• Position HR as a driver of organisational performance, not just a function for “keeping the wheels turning.”
• Align HR’s priorities with measurable business outcomes, such as revenue growth, market expansion, or operational efficiency.
• Hold HR accountable for delivering strategic impact, not just ticking boxes.

By framing HR as a performance enabler, CEOs can push the function to rise above transactional work and deliver meaningful results.

Demand a Talent Strategy, Not Just Hiring Plans

If talent is the lifeblood of any business, HR should be the architect of how that talent is acquired, developed, and retained. CEOs must expect HR to take a proactive approach to workforce planning that directly supports the business’s strategic goals.

• Insist on a workforce plan that anticipates future needs, not just current vacancies.
• Ask HR to identify critical skills gaps and provide solutions to close them, whether through hiring, upskilling, or restructuring.
• Ensure HR is building leadership pipelines to secure the future of the business.

A professional HR leader should be able to articulate how their talent strategy is enabling the business to hit its targets—and adjust that strategy as the business evolves.

Use HR to Build a Culture That Drives Results

Culture can make or break a business. Yet many CEOs leave it to chance, assuming it will take care of itself. HR is uniquely positioned to shape and embed a culture that supports the organisation’s strategic objectives.

• Work with HR to define the cultural attributes that will drive success, such as innovation, accountability, or collaboration.
• Ask HR to measure and manage cultural alignment across the organisation.
• Use culture as a tool for differentiation—both to attract top talent and to retain the people who thrive in your business.

By tasking HR with owning and shaping culture, CEOs can ensure it becomes a competitive advantage, not a stumbling block.

Insist on Data-Driven Insights

CEOs rely on data to make decisions—but often, HR is left out of the equation. Modern HR should be as data-savvy as any other function, providing insights that inform strategy and demonstrate impact.

• Ask HR for data on key metrics like retention, engagement, and workforce productivity.
• Expect HR to use predictive analytics to anticipate challenges, such as skills shortages or attrition risks.
• Require HR to quantify the ROI of their initiatives, showing how they contribute to the bottom line.

A professional HR leader who can speak the language of data will quickly earn their place as a trusted advisor to the CEO.

Empower HR to Lead Change Management

Strategic priorities often involve significant change—whether it’s restructuring, entering new markets, or adopting new technologies. HR should be at the forefront of managing these transitions, ensuring they succeed from a people perspective.

• Involve HR in planning and executing change initiatives, not just communicating them.
• Encourage HR to develop robust change management strategies that minimise disruption and build buy-in.
• Hold HR accountable for the success of change efforts, measuring adoption rates and long-term outcomes.

By empowering HR to lead on change, CEOs can ensure that strategic initiatives are not derailed by poor execution or resistance to change.

Expect Strategic Impact from HR

Finally, CEOs must set the expectation that HR will deliver tangible, strategic results. This means moving beyond vague goals like “improving employee satisfaction” and focusing on outcomes that directly support the business.

• Ask HR to demonstrate how their work is driving business performance, whether through improved productivity, reduced costs, or faster time-to-market.
• Celebrate HR’s successes and communicate their impact across the organisation.
• Continuously challenge HR to push boundaries and find new ways to add value.

When CEOs hold HR to high standards of performance and impact, they create the conditions for HR to truly excel.

Final Thoughts

Many businesses underutilise their HR leaders, keeping them stuck in a “personnel” mindset that limits their potential to add strategic value. But HR has the capability to be so much more. When fully utilised, HR can act as a force multiplier for achieving business goals—driving performance, shaping culture, and enabling change.

If you’re a CEO or MD, it’s time to ask yourself: Am I using my HR team to their full potential, or am I keeping them in the shadows of “personnel” work?

Businesses succeed or fail on their people. HR has the potential to tip the scales—but only if they’re given the tools, mandate, and trust to lead from the front.

This guide is part of NorthCo’s Leadership Series—designed to help leaders unlock the full potential of their teams. Subscribe to our newsletter for actionable strategies and insights that keep you one step ahead.

About the Author

Trevor is the Managing Partner of NorthCo, a fellow of the Institute of the Motor Industry and a member of the Institute of Interim Management. Trevor is a respected C-Suite leader, Chairman and professional Interim Leader. For over a decade, he has provided interim leadership solutions to private equity, venture capital, and asset-backed firms. Whether it’s to stabilise a business during a turbulent trading period, fill a temporary skills gap or support a management team to navigate challenging situations, Trevor’s wealth of experience and proven track record in delivering value creation and retention plans demonstrate his ability to lead and support operational management teams effectively. To find out more about his approach, explore his LinkedIn profile and read what others say about Trevor.

Challenging “Best Practice”: Are You Using It to Signal Authority or Drive Real Value?

During a recent assignment, I attended a presentation from a CTO who was outlining the company’s technology strategy. Midway through his slides, he mentioned that certain processes were “aligned with Best Practice”—a phrase he seemed confident would solidify his position. However, as the presentation unfolded, it became clear that this endorsement was, at best, a veneer. There was little evidence that he actually understood the “Best Practice” he was referencing, nor could he explain how it applied specifically to our challenges. The phrase had simply been added because it sounded credible, as if invoking “Best Practice” alone would close down debate and validate his decisions.

It’s a scenario I’ve encountered repeatedly in leadership discussions. While “Best Practice” can be a valuable concept, too often it’s used as a placeholder—a buzzword that fills in for genuine understanding or critical analysis. Leaders invoke it as a signal of authority, but all too often, it becomes a way to avoid difficult questions, diminish curiosity, and stifle innovation. This trend begs the question: does invoking “Best Practice” truly reflect a commitment to excellence, or are we merely following a script?

To be clear, I’m not advocating against following best practices where they truly apply. When a practice is well-evidenced and genuinely serves your specific needs, it can be invaluable. But there’s a difference between mindful adherence and unthinking obedience. My challenge is for leaders to approach “Best Practice” with curiosity, always asking how it applies to their unique situation rather than accepting it at face value.

In this article, I want to encourage you, as a leader, to rethink your reliance on “Best Practice” as an unexamined benchmark. Instead of using it as a conversational trump card, let’s foster a culture where each so-called “Best Practice” is scrutinised, questioned, and adapted to meet the unique needs of your business. This means asking uncomfortable but necessary questions when “Best Practice” is cited and encouraging your team to demonstrate real understanding and curiosity.

Recognising the Hidden Motives Behind “Best Practice”

One key issue with “Best Practice” is that it’s often wielded as a tool for control. Some leaders use it to assert authority or shut down debate, making it difficult for alternative perspectives to surface. Rather than fostering a culture of inquiry and adaptability, this approach creates a rigid environment where questioning is subtly (or not so subtly) discouraged.

As a leader, it’s essential to recognise when “Best Practice” is being used as a tool for avoiding scrutiny or as a quick fix to justify decisions. When left unchecked, this can lead to stagnation and missed opportunities. The true value of “Best Practice” lies not in its mere adoption but in its thoughtful, context-specific application.

Spotting the “Best Practice” Facade

Here are some signs that “Best Practice” might be used without genuine understanding:

1. Lack of Contextual Relevance: When asked to explain how a best practice specifically applies to their project or team, some managers may struggle to articulate its relevance. They might use generic statements like “It’s industry standard” without connecting it to the unique dynamics of their own operation.
2. Buzzword Overload: If terms like “Best Practice,” “industry-leading,” or “state-of-the-art” are sprinkled into presentations without supporting detail, it’s often a sign that these phrases are being used to impress rather than inform.
3. Resistance to Challenge: Leaders who cling to “Best Practice” as a defence are often resistant to feedback or challenges, even when alternate approaches might offer a better fit. This can hinder innovation and frustrate team members who want to contribute ideas.

Equipping Yourself to Question “Best Practice”

To move beyond surface-level adherence, start by encouraging your managers to ask questions that reveal the depth of understanding behind “Best Practice” claims:

• “What makes this the best approach for our unique situation?”
• “How has this practice been adapted by other teams facing similar challenges?”
• “Are there any limitations to this approach that we should be aware of?”

These questions prompt presenters to prepare meaningful answers, grounded in specifics rather than generic phrases. Moreover, they signal that “Best Practice” isn’t a substitute for critical thinking or adaptability—it’s a baseline that should always be subject to scrutiny.

Building a Culture of Curiosity and Customisation

To move beyond superficial references to “Best Practice,” aim to foster a culture of curiosity. Empower your team to question established norms and to approach challenges with an open mind. When managers are encouraged to develop solutions that fit their specific circumstances, they develop a stronger sense of ownership and a greater capacity for innovation.

Imagine leading a team that not only follows “Best Practice” but adapts it intelligently to fit its unique goals. Such a team moves beyond imitation and becomes a driver of true best practices within the business, building a legacy that goes beyond adherence to industry norms.

Conclusion

The next time “Best Practice” is cited in a presentation or strategy meeting, pause and consider its application. Is it there as a shield, an empty phrase, or is it truly adding value? By fostering a leadership culture that values understanding over signalling, curiosity over complacency, you can move beyond buzzwords and into a realm of genuine, sustainable success.

About the Author

Trevor is the Managing Partner of NorthCo, a fellow of the Institute of the Motor Industry and a member of the Institute of Interim Management. Trevor is a respected C-Suite leader, Chairman and professional Interim Leader. For over a decade, he has provided interim leadership solutions to private equity, venture capital, and asset-backed firms. Whether it’s to stabilise a business during a turbulent trading period, fill a temporary skills gap or support a management team to navigate challenging situations, Trevor’s wealth of experience and proven track record in delivering value creation and retention plans demonstrate his ability to lead and support operational management teams effectively. To find out more about his approach, explore his LinkedIn profile and read what others say about Trevor.

Managing Negativity Bias in Operational Analysis and Strategic Problem-Solving

At NorthCo, our work often centres around identifying operational efficiencies, guiding contingency planning, and solving strategic challenges. Conducting in-depth operational reviews, planning for potential risks, and designing actionable strategies demand a careful balance of objective analysis and forward-looking optimism. Yet, as we delve into these high-stakes assessments, a common human tendency – the “negativity bias” – can sometimes cloud our judgement, subtly pushing us to focus disproportionately on risks over opportunities.

Negativity bias, a hardwired evolutionary response, favours attention to potential threats, which has served humanity well for survival. But in today’s business environment, this bias can lead to overly cautious decisions, missed opportunities, and an imbalanced focus that limits growth. In NorthCo’s context, understanding and managing negativity bias is crucial to delivering balanced and actionable solutions for our clients. Below, we explore how negativity bias can affect operational analysis, contingency planning, and problem-solving, and we provide actionable strategies to counteract it.

The Role of Negativity Bias in Operational Leadership

In operational and strategic consulting, our ability to objectively assess and guide our clients’ next steps is essential. However, negativity bias can lead us to overemphasise potential pitfalls or problems, obscuring an objective view of both the current state and the optimal path forward. For example:

• Operational Analysis: In operational reviews, focusing too heavily on deficiencies without balancing them against strengths can lead to an overly negative portrayal, which may cause clients to adopt overly conservative measures, limiting potential growth.
• Contingency Planning: When preparing for risks, it’s natural to be cautious, but too much focus on worst-case scenarios can restrict proactive problem-solving and result in overly complex or costly safeguards that may not be necessary.
• Strategic Sessions: In strategy development, an overemphasis on past challenges or potential obstacles can detract from the client’s vision and make it difficult to pursue bold initiatives.

A critical aspect of NorthCo’s role is to help clients achieve a balanced perspective that acknowledges risks while also focusing on their strengths and opportunities. By understanding negativity bias and its effects, we can guide clients toward well-rounded, resilient solutions.

Identifying Negativity Bias in Analysis and Planning

Recognising negativity bias is the first step in countering it. In our engagements, the following signs can indicate negativity bias is impacting our assessments or strategic recommendations:

• Overemphasis on Shortcomings: If operational reviews dwell primarily on what’s wrong without sufficient attention to operational strengths, we risk undervaluing existing assets that could form the basis for future growth.
• Avoidance of Bold Solutions: In contingency planning, a disproportionate focus on failure scenarios can prevent us from presenting forward-looking solutions or advocating for growth opportunities.
• Echoing Past Problems: Focusing excessively on past missteps during strategy sessions can stifle innovation and reinforce outdated narratives, rather than promoting a proactive approach to future challenges.

Identifying these tendencies during planning sessions or reviews enables us to course-correct and maintain an objective stance.

Strategies to Overcome Negativity Bias in NorthCo’s Services

To deliver balanced solutions, NorthCo applies the following strategies to ensure that our assessments, planning, and problem-solving approaches maintain a forward-thinking and constructive focus:

• Highlight Both Strengths and Challenges: In operational reviews, we ensure a comprehensive assessment by presenting strengths alongside areas for improvement. Recognising existing efficiencies not only boosts morale but also informs realistic, sustainable action plans.
• Frame Contingencies with a Growth Mindset: When discussing potential risks, we balance this with considerations for positive outcomes. Rather than focusing only on what could go wrong, we work with clients to identify opportunities that could arise in different scenarios, encouraging a mindset that is both cautious and growth-oriented.
• Incorporate Balanced Feedback Loops: During strategy sessions, we guide clients to reflect on both achievements and setbacks, supporting a culture that learns from the past without being bound by it. By celebrating what works, we empower teams to carry forward effective practices while addressing improvement areas.
• Use Constructive Language: Our team takes care to use balanced language that accurately conveys both the challenges and opportunities facing the business. Instead of framing an issue as a failure, we might present it as an opportunity to strengthen processes or realign resources. This approach fosters a positive perspective even in challenging conversations.
• Promote a Collaborative Review Approach: Rather than merely pointing out problems, NorthCo’s approach involves the client team in developing solutions. This fosters buy-in and promotes a shared focus on overcoming challenges, as well as recognising the potential for growth and success.

Countering Negativity Bias in Business

To manage negativity bias effectively, businesses can adopt structured practices that promote a balanced approach to risk and opportunity. These methods help leaders maintain an objective perspective and make decisions that are as informed by possibilities as they are by risks:

• Use Balanced Scorecards: Regularly track both positive and negative performance metrics to ensure decisions are informed by a full picture of company health.
• Implement Scenario Planning: Weigh both risks and rewards in strategic decisions to counterbalance a natural focus on threats.
• Encourage Constructive Feedback: Ensure feedback sessions focus on strengths as well as areas for improvement, reinforcing positive behaviours and achievements.
• Regular Review of Innovations and Successes: By consciously reviewing successes and lessons from previous achievements, leaders can shift focus from just solving problems to seeking growth opportunities.

Creating a Positivity-Conscious Framework for Clients

An integral part of NorthCo’s service is helping clients create an environment that balances caution with optimism, especially in high-stakes or operationally complex scenarios. We apply the following methods to help clients counter negativity bias within their own teams:

• Emphasise Successes During Debriefs: After operational analysis or strategic sessions, we actively highlight successes and positive aspects, showing how these can be leveraged for future growth. This helps instil a mindset focused on continuous improvement rather than fear of failure.
• Encourage a Future-Focused Vision: In contingency planning and strategy, we encourage a “what could be” mindset, helping teams envision the potential rewards of calculated risks. By encouraging a forward-looking approach, we equip leaders with a perspective that looks beyond current issues to future possibilities.
• Conduct Regular, Balanced Reviews: We recommend regular reviews that objectively assess both successes and areas for improvement. This practice enables clients to make informed decisions without dwelling disproportionately on setbacks, keeping morale high and focus sharp.

Building a Resilience-Oriented Culture

At NorthCo, we believe that resilience is essential for navigating business challenges, particularly in dynamic or high-risk environments. A resilience-oriented culture doesn’t simply bounce back from setbacks; it leverages them as learning experiences, which in turn reduces the influence of negativity bias. Here’s how NorthCo helps organisations cultivate resilience:

• Encourage Adaptive Problem-Solving: We train leadership teams to approach challenges with flexibility, assessing multiple solutions rather than fixating on a single path. This adaptability ensures that teams can pivot effectively when facing unforeseen issues.
• Integrate Continuous Learning Practices: NorthCo’s strategy sessions include reflection exercises that encourage learning from both successes and challenges. By fostering an environment that views setbacks as learning opportunities, we help teams embrace a growth mindset.
• Strengthen Team Collaboration: A resilient culture thrives on collaboration, where different perspectives can balance the natural tendency toward negativity. We promote open communication channels and regular team dialogues, which help team members feel supported and reinforce a shared commitment to collective success.

NorthCo’s Approach to Balanced Leadership

Counteracting negativity bias requires a deliberate and structured approach. NorthCo specialises in creating this balance, providing clients with tools to build resilience and optimism into their strategic planning and operational analyses. By focusing on both challenges and opportunities, we ensure that our clients are equipped to make confident, well-rounded decisions that drive sustainable growth.

Ready to overcome negativity bias in your organisation? Contact NorthCo to explore how we can help your team achieve a balanced perspective that empowers success.

Research and further reading

1. Research on Negativity Bias – American Psychological Association’s article on negativity bias.
2. Behavioural Economics and Loss Aversion – Daniel Kahneman’s work on loss aversion, Khan Academy – Nobel Prize references for behavioural economics.
3. Mindfulness in Business – Harvard Business Review’s articles on mindfulness in leadership, available on HBR.org.
4. Building Resilience in Teams – McKinsey (McKinsey.com) and Forbes(forbes.com) articles about fostering resilience in workplace culture.

About the Author

Trevor is the Managing Partner of NorthCo, a fellow of the Institute of the Motor Industry and a member of the Institute of Interim Management. Trevor is a respected C-Suite leader, Chairman and professional Interim Leader. For over a decade, he has provided interim leadership solutions to private equity, venture capital, and asset-backed firms. Whether it’s to stabilise a business during a turbulent trading period, fill a temporary skills gap or support a management team to navigate challenging situations, Trevor’s wealth of experience and proven track record in delivering value creation and retention plans demonstrate his ability to lead and support operational management teams effectively. To find out more about his approach, explore his LinkedIn profileand read what others say about Trevor.

A Quick DIY Guide to Driving Operational Efficiency and Growth

For many business leaders, the pressure to maintain operational efficiency while managing transitions and pushing for growth can feel relentless. The window for making strategic moves can close quickly, and it’s often better to get ahead of the wave before your flexibility starts to shrink. Taking control early—before conditions force your hand—provides far more room for effective decision-making.

While bringing in expert operational advisors can be transformative, you can also take proactive steps internally to identify opportunities and address inefficiencies before they become major roadblocks. This guide offers a straightforward DIY approach to managing your operations more effectively, allowing you to take control of your organisation’s future.

1. Conduct an Operational Review

Your first step should be an honest and thorough review of your current operations. Take the time to step back and assess your existing processes. Ask yourself the following questions:

• Are there any bottlenecks or inefficiencies slowing down progress?
• Which processes are outdated, unnecessary, or redundant?
• How effectively are you utilising your current resources?

DIY Tip: Bring together your leadership team for a process mapping session. Map out each key operational process from start to finish, identifying pain points or areas where things slow down. Be critical but constructive in your analysis—this is your chance to streamline and improve.

2. Evaluate Your Cost Structure

Cost rationalisation is often the key to unlocking more efficient operations and preparing for future growth. But this isn’t just about cutting costs—it’s about ensuring resources are allocated effectively.

DIY Tip: Go through a line-by-line review of your cost base. Separate costs into two categories: essential and non-essential. Essential costs directly contribute to your core business objectives, while non-essential ones can potentially be reduced or eliminated.

Be sure to involve your finance team in this exercise and look for opportunities where small changes can create significant savings without disrupting business operations.

3. Create a Contingency Plan

Every business faces uncertainty, and successful leaders know that the best way to manage uncertainty is to plan for it. Contingency planning isn’t just about preparing for the worst; it’s about giving your team the confidence to make decisions quickly when circumstances change.

DIY Tip: Start by identifying your biggest risks—whether they are operational, financial, or related to external factors like market shifts. Then, develop a trigger-based plan. For example, if revenues fall below a certain threshold, what immediate actions should you take? Be specific about decision points, who is responsible, and what actions should be taken.

Contingency plans should be reviewed regularly, especially as new risks emerge.

4. Facilitate Collaborative Planning Sessions

Often, the best ideas and solutions come from within your team. By creating a collaborative environment, you can leverage the collective knowledge and experience of your leadership team to drive growth and efficiency.

DIY Tip: Run a facilitated planning session with your leadership team. Start by clearly defining the key objective—whether it’s improving efficiency, transitioning the business, or preparing for growth. Use structured brainstorming techniques like SWOT analysis or scenario planning to encourage diverse perspectives and creative solutions.

Remember to document your ideas and develop a clear action plan at the end of the session, with individual responsibilities and deadlines.

Final Thoughts

While operational advisors can offer immense value in driving rapid results and growth, there’s a lot you can do as a leader to take the reins on operational improvement. By systematically reviewing your operations, evaluating costs, planning for uncertainty, and facilitating strong collaborative sessions, you can lay the groundwork for long-term success.

When you need deeper expertise or an external perspective, that’s when professionals step in to help. But until then, these steps can serve as your guide to improving efficiency and positioning your business for growth.

You can read about some of our recent case studies here.

About the Author

Trevor is the Managing Partner of NorthCo, a fellow of the Institute of the Motor Industry and a member of the Institute of Interim Management. Trevor is a respected C-Suite leader, Chairman and professional Interim Leader. For over a decade, he has provided interim leadership solutions to private equity, venture capital, and asset-backed firms. Whether it’s to stabilise a business during a turbulent trading period, fill a temporary skills gap or support a management team to navigate challenging situations, Trevor’s wealth of experience and proven track record in delivering value creation and retention plans demonstrate his ability to lead and support operational management teams effectively. To find out more about his approach, explore his LinkedIn profileand read what others say about Trevor.