Last week, we conducted an intensive business acumen program for a group of new hires. The goal
was simple but powerful: build a foundation in strategic thinking and financial management so they can deliver more value to their clients and accelerate their own careers.
At the center of the learning journey was a customized business simulation. In small teams of five, participants ran their own simulated companies, literally walking a mile in their clients' shoes. Over three “years” of running their businesses, they faced the same real-world challenges leaders confront every day: pricing pressures, cost decisions, investments in innovation, and the constant balancing act between short-term wins and long-term sustainability.
The High-Five Moment… That Didn’t Last
After the first simulated year, one team had the room buzzing. They executed a low-price Operational Excellence strategy and immediately jumped into the lead: the most revenue, highest margins, strong net income, healthy free cash flow, and even a stock price bump. They were thrilled; high-fives flying, friendly trash talk echoing across the room.
But by the end of the third year, that same team was technically bankrupt.
What happened? They admitted during the debrief that they “rested on their success.”
Instead of staying disciplined, they became complacent and lost focus. Worse, they muddled their strategy by layering on an ill-conceived push into product innovation. The result was confusion for both their simulated employees and customers, and a decline in performance.
The Lesson: Never Stop Moving Forward
This example serves as a poignant reminder that in today’s volatile business world, you can never rest on your laurels. Winning in year one is meaningless if you can’t sustain it in year three. Complacency kills strategy.
So, what can everyday managers do to avoid this trap? Here are three practical habits that can keep you sharp and moving forward:
- Challenge Your Own Assumptions Daily
Don’t let early wins lull you into thinking your approach will work forever. Ask yourself: What’s changed in the market? What could disrupt us tomorrow? Staying curious and skeptical keeps you adaptive. - Keep Strategy Simple and Clear
The downfall of our simulated team was trying to layer on multiple, conflicting strategies. Stick with clarity. Make sure your employees and customers know exactly who you are, what you do, and why you matter. - Measure Progress Relentlessly
Business success is not about celebrating one strong quarter; it’s about creating consistent, repeatable performance. Track the metrics that matter (cash flow, profitability, customer retention) and never stop pushing to improve them.
In business, the moment you rest on your laurels is the moment you fall behind. The leaders who succeed are the ones who treat every accomplishment as fuel for the next challenge, not a reason to slow down.
Action Step: Leader’s Reflection
Take a moment to reflect: Where in your business, or even in your personal leadership journey, are you resting too much on past accomplishments? Is it a big win you keep replaying instead of building the next one? Is it a strategy that worked last year but may already be outdated? The best leaders don’t coast. They use each success as momentum to take on the next challenge with clarity, energy, and discipline.
