D Wade's business decision
In case you've been living under a rock the past few days, Dwayne Wade has a big choice ahead of him - try and rehab his shoulder and make it back in time for a playoff run to defend his title, or get season ending surgery and be 100% healthy for next year. Anyone and everyone thinks they know what he should do.
People who think he should rehab are saying that he should do everything possible to be on the court for every game possible. They say that the Heats window is closing (it is) with aging veterans like Shaq, Antoine Walker, Gary Payton, Eddie Jones, etc and that Dwayne Wade "owes it" to those guys, the organization, and the fans to try to win right now at all costs.
The other camp says that the only way to completely heal a shoulder is surgery, and he's placing his long term health and the health of the Heat franchise in jeopardy to get back to a team that was barely .500 WITH him in the lineup.
No side is "right" but both sides make great points. So you say, "that's nice Adam...but I hate sports and wtf does this have to do with being a business owner?"
Dwayne's decisions are similar to the business decisions we make every day. It isn't always better to sell out the future health of your company to make as much money as possible. If you could earn $1million in revenue if you cut all sorts of corners, is that better for your business than earning $750K and properly satisfying every customer and planning properly for future growth? If you don't put effective and efficient processes in place than your businesses long term health will likely suffer. If you don't plan properly for scaling your business, you will run into problems as you grow.
In my opinion the smart business owner "gets surgery" and sacrifices some cash for the future health of the company. And I think most private companies think like this. But the odd thing with public companies is that CEO's are brought in to turn around a company on a whim - essentially to try to win a championship now at all costs, in turn hurting the long term health of the business. Not only does this effect employees, it effects shareholders. If you are planning on holding the stock for 20 years for retirement, is a CEO whose brought in to increase the bottom line within a five year window really acting in your best interest?
It will be interesting to see what D Wade does...
People who think he should rehab are saying that he should do everything possible to be on the court for every game possible. They say that the Heats window is closing (it is) with aging veterans like Shaq, Antoine Walker, Gary Payton, Eddie Jones, etc and that Dwayne Wade "owes it" to those guys, the organization, and the fans to try to win right now at all costs.
The other camp says that the only way to completely heal a shoulder is surgery, and he's placing his long term health and the health of the Heat franchise in jeopardy to get back to a team that was barely .500 WITH him in the lineup.
No side is "right" but both sides make great points. So you say, "that's nice Adam...but I hate sports and wtf does this have to do with being a business owner?"
Dwayne's decisions are similar to the business decisions we make every day. It isn't always better to sell out the future health of your company to make as much money as possible. If you could earn $1million in revenue if you cut all sorts of corners, is that better for your business than earning $750K and properly satisfying every customer and planning properly for future growth? If you don't put effective and efficient processes in place than your businesses long term health will likely suffer. If you don't plan properly for scaling your business, you will run into problems as you grow.
In my opinion the smart business owner "gets surgery" and sacrifices some cash for the future health of the company. And I think most private companies think like this. But the odd thing with public companies is that CEO's are brought in to turn around a company on a whim - essentially to try to win a championship now at all costs, in turn hurting the long term health of the business. Not only does this effect employees, it effects shareholders. If you are planning on holding the stock for 20 years for retirement, is a CEO whose brought in to increase the bottom line within a five year window really acting in your best interest?
It will be interesting to see what D Wade does...
posted by Adam McFarland at
2/24/2007 06:21:00 PM
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