Canadian business academics believe the past decade's focus on short-term profit will shift to a focus on long-term sustainability
The past decade has brought dramatic changes to the world of business and beyond, and the coming decade is expected to do the same. But this time, Canadian small business owners may want to focus less on new and exciting technologies and strategies, and more on the basics.
In a survey of the faculty at Canada's top business schools, the Financial Post found that most business academics anticipate a return to the fundamentals of leadership, as the past decade has put too much of an emphasis on short-term profit.
"I think what's happened over the last decade is that too many people got enamoured with the bottom line and not so much with building the long-term sustainability of their businesses," Glenn Rowe, associate professor of strategic management and director of the executive MBA program for the Richard Ivey School of Business in Ontario, told the newspaper.
As a result, the coming years will likely see a renewed focus on developing a sound business - one that can weather economic storms and bank collapses.
Leadership best practices will also evolve in turn, many business academics told the newspaper. There will be more of a focus on being results-oriented and accountable, as well as being able to motivate and inspire employees in a non-financial way, due to tightened budgets.
The key will be to balance the past decade's focus on short-term success with the emerging focus on long-term sustainability.
"We need to develop people who have a sense of what is it is to be a strategic leader," Rowe told the Financial Post. "It's the ability to be fluent with those with whom you work, to voluntarily make decisions on a day-to-day basis and enhance the long-term viability of the organization. It's the combination of being a manager and a visionary with his or her feet nailed to the ground."
Strong leadership will likely continue to be one of the most important small business tools available, both in the recession and afterward - according to a recent McKinsey Global Survey, leadership was found to be the most important factor in guiding a company through tough economic times, even more so than innovation or internal skills and talent.
