Question:  What are the three critical numbers you use to manage your business?  As a leader, what’s your backup system (or at least your plan) when the game suddenly changes?

I’ll get to that question in a minute, but first let me share a personal story.  I continue to be surprised by some of the misconceptions that people have about flying.  This past weekend I was in a conversation with a man who had a friend that was a pilot of a small plane.  This man’s friend took off on a trip cross country and not too far along he had an instrument failure.  The plane did not crash, but the man who told me about it obviously felt some dire anxiety for his friend and his “close call”.  I mentioned to the man that I was a pilot and that about half of all pilots do not have an instrument rating.  Even those who do don’t always choose to file an instrument flight plan, especially if they don’t plan to fly through clouds or in bad weather.

The majority of flying in small planes takes place under what are called visual flight rules:  the pilot is responsible to stay clear of clouds and to see and avoid other traffic–any other planes, helicopters, gliders or balloons that share the skies.  In fact, a competent, well-trained pilot of small planes should be able to fly their plane safely without ever having to look at the instruments.

If that’s the case, why do planes have instruments?  In a word: options.  Instruments (or other measurement systems) give us more options, and usually they offer greater accuracy.

Let’s continue our lesson from flying planes.  When a pilot receives flight training in flying by instruments, one of the first things an instructor will do is demonstrate how easy it is to trick or disorient a pilot once you remove visual cues.  Every pilot must face the humbling lesson that they are not the exception to the rule: disorientation can happen pretty easily, and if you fly in clouds or fog or at night in the mountains in a fairly short amount of time you will lose your way and get yourself in a position you don’t want to be in.  Flying by the seat of your pants, or gut instinct may sound macho or reasonable, but it’s not going to keep you alive in bad weather or when visual references are gone.

When you’re responsible for running an organization (or even a division or large team), the same rules apply.  Through years of experience you may have developed pretty good instincts or a seat-of-the-pants intuitive feel for making decisions and exercising leadership.  But what happens when the external environment suddenly changes, or a new generation with different expectations joins the workforce (and your organization), or a game-changing technology threatens your market space?  The old familiar references are gone or obscured, and if you don’t have instruments, measures or a backup system…a happy outcome is NOT very likely.

Let’s deal with another misconception here.  Any non-pilot who has looked in on a cockpit has probably been overwhelmed by the amount of instruments, dials, levers and buttons they see there.  An airliner is the extreme case, but even a small plane cockpit is daunting or mysterious to the non-pilot.  The truth is, even inexperienced pilots get overwhelmed or transfixed by the instruments in the cockpit until they develop some discipline.  There are a few primary instruments that you must use, and the rest give you additional information or other options if you need them.  The most basic–and essential, or useful–flight instruments are a compass, a clock, and your engine gauges.  A compass tells you direction and warns of drift; it is an underrated instrument.  A clock allows you to keep from running out of fuel (more predictably than fuel gauges!), make time/distance/fuel calculations, and time turns (which is important if you get into bad weather).  Engine gauges indicate engine health and performance; they give you warnings of when your plane is about to become a glider (an extremely useful piece of information).

Think about your business.  What metric/measurement helps you stay oriented the right direction?  Which metric/measurement gives the most useful information about performance, telling you you’re making good progress or warning you that you’re running out of gas?  How do you measure and keep time in your business?  Every good manager knows their three critical numbers and the other numbers that give more accuracy and specialized information.

Leaders also have a backup system for when the game suddenly changes.  Being clear on your own vision and values is the essential first step.  A well-considered strategic plan is the next step.  If these are clear, your judgment and decision making in stressful situations will be much better.  Backup systems anticipate contingencies or emergencies:  scenario planning, disaster recovery plans, succession planning, risk management plans and systems, leadership development and employee training are some of the best examples of ways to be prepared when the ground shifts underneath you and taking the right action is critical.

Flying an airplane and running a business or leading a team are not overly complex, though we can certainly make the task more complicated than it needs to be.  With the right orientation, measures and backup systems in place, these can be enjoyable and fulfilling endeavors.