Long-time real estate expert and President of Cal West Apartments, David Malcolm, notes that we live in an era of rapid, sometimes off-putting change. Artificial intelligence is becoming more advanced by the day; the global political atmosphere is chaotic; and the economy is completely unpredictable. All these factors in combination leave business leaders in a tight spot.
Successful leaders must rely on two seemingly contradictory traits to thrive in the current business atmosphere. They need to simultaneously operate at lightning speed and be patient enough to stick to a long-term vision.
Be Very Nimble
To David Malcolm, speed is essential. So too is the ability to respond to situations not just reactively (defensively), but also proactively (offensively). Being informed of your industry is part of the process. It’s critical to read everything you can, have discussions with other like-minded leaders, and assess industry trends to anticipate potential landscape shifts or threats.
“I’m in the real estate business, including home-building. As the situation regarding tariffs evolves (and at times devolves), I need to know if building materials will be affected,” Malcolm wrote in his Forbes piece. “Do I need to move fast to get materials to build new homes now, or do I need to wait until the situation changes? If it changes, will costs actually increase? Do I buy new, efficient appliances for our rental properties to save on electricity and water costs now or later?”
These thoughts are all part of Malcolm’s reactive, rapid response. But he’s also constantly thinking on the offensive in an effort to bolster future opportunities. As he put it, “When the opportunity to acquire a new property comes up, I move very fast to lock up exclusive or first-right options. Then I can take time to do due diligence, but I haven’t lost out because someone moved faster than me.”
And Be Solid—Rock Solid
But there is a danger to always being in “rapid response” mode—you might sacrifice your long-term vision. That’s where the contradictory traits come into play. In today’s business world, leaders must be committed to their organization’s long-term performance.
David Malcolm believes the best leaders can do both. Moreover, he knows they have to do both.
“A clear vision helps you play the long game while you react quickly to changing circumstances. It incorporates lasting values and is the north star for you and everyone who works in your organization,” Malcolm wrote.
The key is to view your vision as a highly adaptable roadmap and your tactics as the activities that can shift in the blink of an eye. To Malcolm, a leader “needs to move fast and shift tactics to meet the moment of outside factors, while he or she ensures the tactics are in line with the existing or updated strategy, all driving toward a north-star vision.”
When Assessing Risk, Look Before You Leap
Like many successful business owners, David Malcolm is a believer in taking risks. But those risks still require careful consideration. The traits discussed above both carry inherent risk in the business world. Reacting quickly to every perceived threat means sacrificing some semblance of your long-term vision. On the other hand, constantly pondering the future might mean you’re letting the world pass you by.
When assessing the risk of both, Malcolm recommends asking yourself a set of important questions: “What is your and your organization’s risk-tolerance level? Is rapid response the best way to deflect risks and seize opportunities, or does it carry the very real possibility of losing your way? Is being anchored to a long-term vision a self-limiting behavior that means you miss opportunities and don’t adapt to changing circumstances?”
Again, the key is to balance both traits simultaneously while anticipating as much as possible. As the Great One, Wayne Gretzky, once said, “I don’t skate to where the puck is; I skate to where the puck will be.”
Or, as Malcolm puts it in more modern business terms, “The business leader who moves fast with a clear picture of the optimal future is always skating, but always with an eye to where tomorrow’s payoff will be.”
About David MalcolmWith a five-decade track record of success in the real estate industry, David Malcolm is the President of Cal West Apartments, which has provided financing and homes for thousands of residential and commercial clients. Malcolm has also served in several civic offices and is a generous contributor to many public and private organizations.