Prioritize Neutral-to-Winning Strategies and Embrace Continuous Advancement

The persistent myth of perfection is holding businesses back, creating blind spots and hindering genuine advancement. In this conversation with Dave Mortensen, president and co-founder of Self Esteem Brands (Purpose Brands), we uncover the often-overlooked dynamics of stakeholder value and the critical importance of "living in the gray." Mortensen argues that true progress isn't about achieving an unattainable ideal but about consistent forward movement, even amidst imperfection. This perspective is vital for leaders who find their organizations stalled, struggling to execute despite seemingly good ideas. By mapping stakeholder impact and embracing iterative progress, businesses can avoid creating win-lose scenarios and instead foster sustainable, widespread value. Anyone aiming to break through plateaus in growth or execution will find a powerful framework here for navigating complexity and fostering a culture that champions honest feedback.

The Illusion of Perfection: Why Advancement Trumps Flawlessness

The allure of perfection is a powerful siren song for businesses. It promises a flawless product, a seamless customer journey, an organization without a single flaw. But Dave Mortensen argues forcefully that this pursuit is not only unattainable but actively detrimental to growth. "Perfection to me is growth and advancement," he states, reframing the concept entirely. For over two decades, Anytime Fitness has achieved consistent positive growth and store openings, a feat Mortensen attributes to a relentless focus on advancement rather than getting "too caught up in perfection." The danger, he explains, is that the pursuit of an idealized state can lead to missed opportunities and a failure to move forward. When teams become enamored with perfecting a single aspect, they risk creating "ugly" outcomes or simply stagnating.

This relentless drive for perfection often stems from a misunderstanding of stakeholder value. Businesses may pour resources into a product that customers love, only to discover it creates significant operational burdens for their own teams or franchisees. Mortensen emphasizes the necessity of a "stakeholder map," a deliberate exercise to assess the impact of strategic priorities on every party involved--staff, investors, franchisees, their employees, customers, and vendors. The goal isn't a perfect win for everyone, an impossibility he acknowledges. Instead, it's about avoiding "win-lose-lose-win-win-lose scenarios" and striving for strategies where every stakeholder is at least neutral, if not winning.

"It is impossible to create a win-win-win-win-win scenario. What you don't want to create is a win-lose-lose-win-win-lose scenario. I care more about creating some wins throughout the organization, but making sure we don't create losses while we do it."

When this mapping is neglected, organizations develop "blind spots." They might be excelling in one area, say customer satisfaction, while inadvertently creating friction or disincentive for another critical group, like their operational staff or franchisees. This imbalance, Mortensen suggests, is a primary reason why well-intentioned strategies fail to execute. The value doesn't spread; it gets bottlenecked or even lost because a key stakeholder group is experiencing a loss or significant friction. The strategy must be dynamic, adapting year over year to address the evolving needs of different stakeholders, rather than being rigidly fixed on an abstract ideal.

"Living in the Gray": The Strategic Advantage of Nuance

In a world increasingly polarized, Mortensen champions the power of "living in the gray." This isn't about indecisiveness; it's about a sophisticated understanding that most complex problems don't have simple, black-and-white solutions. He draws a parallel to politics, suggesting that "all the answers are in the middle." When leaders refuse to engage with perspectives that challenge their own, they risk alienating crucial segments of their ecosystem--their culture, their customers, their employees.

The danger of success, Mortensen notes, is that it can insulate leaders. As organizations grow, the very people who report to you may become hesitant to challenge your decisions, creating an echo chamber where "you must now always have the right answers." This is precisely why actively soliciting dissent is crucial. He advocates for curiosity about "the voice not speaking in the room," recognizing that critical insights often come from those who are observing, processing, and perhaps even disagreeing silently. This requires leaders to not only be open to challenge but to actively solicit it, creating an environment where diverse viewpoints are not just tolerated but sought out.

"As leaders, as we grow in leadership, less people want to challenge you, and you're absolutely right. So you need to ask them to. I need to hear your opinion. And that's where you get curious about the voice not speaking in the room."

This commitment to nuance extends to idea generation. Mortensen posits an 80/20 rule for great ideas: "Great ideas for our organization do not happen at corporate. Do not happen out of my mouth." Instead, he believes the "gold" is found by sifting through the noise in the field, with customers, and with franchisees. This requires a willingness to engage with a large volume of information, much of which will be irrelevant or unhelpful. The crucial differentiator is the willingness to "work hard through the 80% to get to the 20%." This is where competitive advantage is forged--in the disciplined effort to extract value from the periphery, a task many leaders avoid because it's difficult and time-consuming. It's about listening not just for what people say they want, but interpreting the underlying needs, much like Steve Jobs famously did with the iPod, understanding the desire for music access even when customers couldn't articulate the specific product.

The Long Game: Embracing the Journey Over the Destination

Mortensen’s advice to his younger self is a powerful distillation of his philosophy: "Play the long game." In an era obsessed with speed and immediate results, he sees a concerning trend where individuals want success "faster than they" can truly achieve it. The true value, he argues, lies not in the balance sheet or the speed of arrival, but in the "experiences you went through through the journey." This perspective is crucial for fostering resilience and a sustainable approach to growth.

This philosophy underpins the actionable takeaways for leaders and organizations:

• Embrace Iterative Progress Over Perfection: Recognize that advancement is the true measure of success. Launch, learn, and iterate rather than waiting for an unattainable ideal. This means accepting that initial versions may have flaws but are necessary for forward momentum.
• Map Your Stakeholders: Before launching any new initiative, product, or strategy, meticulously map its impact across all stakeholders. Identify potential win-lose scenarios and proactively adjust to ensure neutral to positive outcomes for everyone involved. This requires deep empathy and a willingness to see the system from multiple perspectives.
• Actively Solicit Dissent: Cultivate a culture where challenging leadership is not only accepted but encouraged. Specifically ask for the opinions of those who are quiet, and create psychological safety for them to voice concerns and alternative viewpoints.
• Sift for Gold in the Noise: Commit to engaging with your customers, field teams, and franchisees to uncover valuable insights. Understand that most of what you hear will be noise, but dedicate the resources and patience required to find the 20% of "gold" that can drive significant innovation.
• Embrace the "Gray" in Decision-Making: Resist the urge for simplistic, binary solutions. When faced with complex issues, actively seek out and consider opposing viewpoints. "Living in the gray" allows for more robust, adaptable, and ultimately more effective strategies.
• Invest in Data Infrastructure: For organizations looking to leverage emerging technologies like AI, recognize that "good AI requires great data." Prioritize building a clean, accessible data warehouse that can feed these powerful engines. This is a foundational, longer-term investment that pays dividends in enhanced decision-making and operational efficiency.
• Play the Long Game: Shift focus from immediate wins to the sustained journey of growth and experience. This mindset fosters resilience, encourages learning from mistakes, and ultimately leads to more profound and lasting success. This pays off in 12-18 months and beyond, building a foundation of durable success.