As a CEO, you’re going to make big decisions—and with those decisions come the possibility of big mistakes. These mistakes can have a significant impact on your reputation and require you to pivot.
You might:
- Hire the wrong person for a critical role
- Pursue an initiative that doesn’t align with your company’s goals
- Make a bold bet that ultimately doesn’t pay off
And that’s okay.
Mistakes are part of the journey, and every leader will encounter them. What’s not okay is continuing to pour your company’s precious resources into a mistake once you’ve recognized it.
Pivoting Requires Admitting You’re Wrong
When you realize you’ve made a mistake, it’s natural to feel a range of emotions:
- Shame: You may feel that your credibility is on the line.
- Embarrassment: You might worry about what your team or peers think of your decision-making abilities.
- Fear: You could be concerned that the Board might question your leadership or even consider replacing you.
These are legitimate concerns, but they can’t dictate your decisions. The longer you let these emotions control you, the deeper the mistake can grow, potentially causing more harm to your company.
Recognizing the Need to Course-Correct
Here are some common scenarios where you might recognize a mistake:
- Hiring the Wrong Executive: You brought someone on board who isn’t the right fit for your company’s culture or goals.
- Expanding to the Wrong Location: You opened a new office in a market that isn’t delivering the expected returns.
- Pushing a Product Without Proper Research: You advocated for a new feature or product without enough research, and it’s clear it won’t succeed.
- Designing an Ineffective Compensation Plan: You created a comp plan for your sales team that’s not driving the desired results.
Acknowledging these mistakes is the first step. The next, and most crucial step, is to take action to correct them.
How to Correctly Pivot
Once you’ve identified a mistake, it’s essential to act swiftly and decisively:
- Part Ways with the Wrong Executive: It’s never easy to let someone go, but sometimes it’s the best decision for both the individual and the company. Handle the situation with compassion and professionalism.
- Shut Down the Underperforming Office: If the new location isn’t working out, it’s better to cut your losses early rather than continue to invest in a failing venture.
- Kill the New Feature: It can be tough to admit that a product idea won’t work, but it’s better to focus on initiatives that have a real chance of success.
- Redesign the Sales Compensation Plan: If the current plan isn’t motivating your team, don’t hesitate to make changes. A well-structured comp plan is vital for driving sales performance.
Pride vs. Progress
As a leader, you won’t be infallible. Mistakes will happen, and that’s part of the journey. But don’t let pride stand in the way of doing what’s best for your company. The real danger lies in letting your ego prevent you from admitting a mistake and making the necessary corrections.
In the end, the ability to recognize and correct mistakes is what sets great leaders apart. It’s not about avoiding errors altogether—it’s about how you respond and pivot when they happen. Don’t let pride or fear cloud your judgment. Instead, focus on making decisions that are in the best interest of your company, even when it means admitting you were wrong.
By embracing this pivoting mindset, you’ll not only protect your startup's future but also earn the respect of your team and stakeholders for your honesty and decisiveness.
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