The views expressed by the business participants are their own.
When was the last time you took stock of what your business has accomplished and what your legacy will be when you’re gone?
Understandably, most of us are caught up in the daily demands and challenges of running our company or organization while trying to manage our personal lives. Few of us ever take the time to consider what we are working towards in the long term. Where will your business be in 10 years? In 20 years? And what if, due to an unexpected tragedy, you die today and your business is forced to close – what will your obituary say, and what will be written about your business?
“Obituary audit” or “eulogy audit” is an activity often used by individuals to evaluate their lives. It helps to ensure that they live in a way that they will be proud of when they look back on their lives.
It may seem like a volatile process, but it can be a powerful tool for determining whether you and the organization you’ve invested so much time, effort and energy into align with your personal values in a way that will endure long after you. ‘he’s gone. Obviously, there are many business metrics to determine the asset value of what you have built: stock price, dividends paid and market cap, among many others.
Related: 5 Things to Plan for Your Entrepreneurial Legacy
But what if you have to answer the following questions: What is the legacy of your business? What will people say about you and your business when you are gone? Are you happy with what they have to say? There are many examples of companies that have left behind bad legacies. Consider the energy company Enron, which defrauded investors, undercut customers and wiped out its employees’ pensions because of its corporate greed and illegal accounting practices.
Or consider Lehman Brothers, an investment bank that was revered for more than a century before its reputation was quickly erased in a matter of weeks during the early days of the 2008 financial crisis. At first, Lehman’s heavy investments in subprime debt helped them post astronomical profits, but when the market crashed, Lehman’s downfall was swift and brutal. Lehman’s death led to the largest bailout in US history – $619 billion, with investors and American taxpayers left holding the bill.
Legacy is not just how you hope you and your business will be viewed 20 or 30 years from now. It’s about creating a corporate culture now where every decision, big or small, is aligned with the ultimate legacy you hope to leave. It’s about living your legacy today and every day.
For years, the business model has been based on maximizing profits at all costs while doing damage/reputation control through charitable giving. That’s how companies like Purdue Pharmaceuticals operate. They made billions by misrepresenting the data on their highly addictive drug, OxyContin, which is a major contributor to the opioid crisis that continues to plague America today. At the same time, the Sackler family, which owned Purdue, donated millions to the arts, charities and universities. Today, with the family legacy in tatters, many charities and institutions refuse to deal with the Sacklers or trust them.
What these examples show is that both your personal and business legacy is determined by your actions throughout the history of their existence. It’s not just the end result of shareholder profits or a big donation to charity after years of corporate misconduct.
Consumers want companies that are committed to doing more than just the bottom line. They want real companies that walk the talk. That’s why companies like Costco are both profitable and trusted. The Reputation Management Company says Costco has a “legacy of excellence and member satisfaction,” which is one of the reasons they are “the second most trusted company in America” (behind only Patagonia), according to a 2023 Axios study.
They offer low prices, high quality products, treat their employees well and support their local communities through charitable donations, partnerships and pay employees to “volunteer” in the community. They speak and live the legacy of their brand from the CEO to the front line.
Related: Leaving a Legacy: Your Business Success Requires a Continuity-First Approach
So, what does an obituary test tell you about yourself and your company? Is your company or organization creating a proud legacy that aligns with your values? If not, here are a few ideas to get you started:
Create a legacy statement: We’re all familiar with mission statements, but also think about creating a legacy statement that outlines the impact you want your business to have in the long term – be it in your community, country or world.
It should reflect the values you want your company to uphold and the kind of legacy you want to leave behind. Work with your team to develop a legacy statement and incorporate it into your strategic and long-term plans to ensure your company is working towards it every day.
Carry out an inheritance test: Just as you might conduct a financial audit to assess your company’s financial health, a legacy audit can help assess the degree of alignment between your operations and your values. A legacy assessment should include a thorough review of your company’s values, processes, products and culture. Identify areas where you are on track and where you are falling short to create a plan to correct the gaps.
Use a value-based decision-making matrix: To ensure that your business decisions always reflect your legacy statement, consider using a values-based decision-making framework. This framework should include a set of guiding questions or criteria that you and your team can use to evaluate key decisions. For example, “Is this decision consistent with our company values?” or “How will this decision affect our long-term legacy?” This approach ensures that your legacy remains at the forefront and focus of your daily activities.
We all want to be proud of the legacy we leave behind. If you don’t like what you see, work to create the legacy you want.
Source link
