By Wayne Outlaw

It’s not enough to be intelligent. To be effective as an executive you must have the insight to perceive subtle changes, shifts in behavior, and most importantly, spot trends before they become fully evident. Insight is an essential skill that an executive must develop.

If intelligence was sufficient for success, many businesses from the past would continue to thrive today. In the 40s and 50s, the retail giant Sears, Roebuck & Co. employed many highly intelligent people. In the 60s, Kmart executives perceived the need for a different type of retail establishment and changed the retail landscape with the “blue light special.” Sam Walton, a small retailer from rural Arkansas, perceived delivering everyday low prices on everything was important. He had the insight to realize that in order to grow his business and have scalability, he needed processes, procedures and procurement to create a profit machine that would change retail not just for America, but throughout the world. 

In each example, we must assume each CEO worked to staff the organization with highly intelligent, highly motivated individuals. They were intelligent and motivated so how did a competitor “slip up on them” and take the lead? The key was insight. While those that build a business don’t lose their intelligence as it grows and prospers, they may lose their insight or ability to see or predict real or profound changes. They may become disconnected and not notice the patterns, trends, problems and opportunities, and let businesses run by those with more insight pass them by.

Insight is a skill that can be developed and applied. You can’t rely on others to develop and utilize your insight. Set aside time to “unhurriedly” look at your environment and yourself with an objective eye. If you’re busy hurrying to the next task or continuously preoccupied, it’s impossible to perceive subtle and minor changes.

See your business and yourself objectively as an outsider would, without bias or alibis. It’s easy to rationalize away key changes, such as “Sales are down this year, but the entire industry is down,” or “We’ve lost some to a competitor, but we’ll get it back.” This is one time to be dispassionate to see reality.

Don’t look just at your current goals or tactics you are using to counter a particular situation; take a longer view to see the changes and their real implications. We know to identify the strengths, weaknesses, threats and opportunities that we face in each area of our business, but see them through others, not our, eyes. It may have been easy for KMart executives to be lulled into a sense of false security by saying “We offer the lowest prices,” when an upstart competitor was promoting “everyday low prices with brand name products.”

Identify and record in a journal what you see as the trends and the “real” situation. Develop your insights and review them with an objective person. Many executives have friends in the industry that they can “bounce ideas off” or have give them “a reality check.” Review your observations with this individual and get his or her input and record it. Be sure to ask what you missed about a situation and why it is important. Ask “what else?” and “what does it mean?” Look back later and evaluate your accuracy.

Developing your insight will take time and effort, but it will pay significant dividends. It’s difficult to tell where increased insight will be needed or used; however, once it’s developed, it is an extremely useful tool both professionally and personally. Take the time to exercise and hone your insight.

Wayne Outlaw is a nationally known speaker and consultant who conducts a Charleston CEO Forum for CEOs who want to increase their performance and enhance their lives. He can be reached at 884-9361 or wayne@outlawgroup.com.

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