On Stating The Obvious
Larry Fink, the CEO of BlackRock (the world’s largest money manager overseeing $6.5 trillion+), writes an annual letter to the CEOs of the companies they’re invested in.
Needless to say, his words carry weight.
In 2016, he warned about the effects of short-term thinking and quarterly earnings targets and asked companies to lay out a strategic framework for long-term value creation.
In 2017, he reiterated the need for long term planning while factoring in what’s happening around us. “As you build your strategy, it is essential that you consider the underlying dynamics that drive change around the world.”
In his 2018 letter, “A Sense of Purpose,” he emphasized the importance of a clear framework around a company’s purpose and strategy for long term growth. “Without a sense of purpose, no company, either public or private, can achieve its full potential.”
In 2019, his “Purpose & Profit” letter reminded CEOs how profits and purpose are inextricably linked. “Purpose is not the sole pursuit of profits but the animating force for achieving them.”
And 2020, in “A Fundamental Reshaping of Finance,” he wrote about the impact of climate change.
Two thoughts stuck out after reading his letters…
1. Strategy is strategy whether in business or life. And it's important.
I’ve believed this for a while and it’s how I structure my approach to coaching.
Long-Term Planning over Short-Term Planning.
Considering Context over Operating In A Vacuum.
Proactivity over Reactivity.
Purpose over Profits.
I imagine most of us would agree these are not just obvious and fundamental practices for business, but for life as well.
But how many of us would say our companies operate this way... with clear purpose, strategy, and responsibility?
And how many of us would say we operate our lives this way?
Through the years, I’ve gotten a lot of shit from family and friends for focusing so much on purpose and what I want from life, as well as for my approach in going after them. Great things have happened and awful things have happened, but I can 100% say I'm good if today was my last because there wasn't a single dream I didn't chase.
So, if fulfillment and purpose are what we're after, I believe wholeheartedly there are few things more valuable than having a strategy for our lives with clarity in why we’re here, where we want to go, and how we might get there.
2. Sometimes we need to be reminded of the obvious.
But, oftentimes we need to be hit where it hurts to take action.
For the world’s leading companies, Larry Fink has been an annual reminder of foundational principles that underlie sustainable businesses. But the potential impact to their bottom line drives action.
For each of us, there are plenty of Larry Finks in our lives, stating the obvious. If we’ve lost sight of some fundamental truths, I hope we take a regular beat to consider what we need to refocus on.
But what are our unique bottom line equivalents? The things that, if threatened, would finally force us to act on the obvious. A layoff, an illness, a death?
Instead of waiting for those, can we take action proactively, to have more sustainable lives and careers on our terms before we’re forced to?
In other words, what important things are you waiting on doing that you could start doing today? If nothing comes to mind, then that's a solid sign your actions are in line with your priorities. But if something does come to mind, what are you waiting for?
🙏,
Pam
(Inspired by The Daily episode, “Can Corporations Stop Climate Change?”)
