Critical infrastructure includes those things that are essential for sustaining our way of life. For me, it includes Diet Coke, pierogies, Peanut M&M’s, and of course, pizza. But for our more serious forms of critical infrastructure, the U.S. government regularly reminds us of the importance of protecting our infrastructure such as safe drinking water, transportation, electricity, communications, food supply, banking, and healthcare, to name just a few. Hurricane Helene in 2024, the COVID-19 Pandemic, and the Southern California wildfires earlier this year served as reminders of how quickly life can be impacted when infrastructure breaks down. And when infrastructure crumbles, life for many begins to go sideways, resulting in a lot of damage and devastation.
Organizations also have critical infrastructure, those things that determine their long-term viability and success. This includes areas like supply chain, technology, finances, workforce staffing, leadership, facilities, and equipment.
In Old Testament history, the Tribe of Issachar was known for understanding the times and knowing what to do. In short, they were wise and discerning. Leaders today also need their own version of this tribe – a gathering of wise people who are always learning, testing assumptions, and planning for scenarios, especially when it comes to guarding their critical infrastructure. Here are six critical infrastructures every owner or leader would be wise to guard.
1. Leadership
In 2001, Jim Collins wrote the best-selling book Good to Great. One of the 11 case studies of success he used was the electronics company Circuit City, which had 567 stores and 34,000 employees. Yet at 2:45 pm on January 16, 2009, Circuit City was gone… forever. That was only 8 years after the publication of the book! The company’s leaders were blinded by success and missed the consumer trends and competitors that were fast approaching – namely Best Buy and Amazon. Organizations rise and fall based on their leadership, which makes leadership one of the most critical aspects of infrastructure.
2. Staff
Every business is reliant on its people – the team members who sell, schedule, serve, repair, respond to emails, and address concerns. Yet, according to the U.S. Bureau of Labor Statistics, the average employee only stays at a job for about four years. Recruiting and retaining exceptional team members is no easy task. And if the Pentagon says that 77% of young people do not qualify for military service, that cannot be a good sign for employers looking to hire. This makes it all the more important that we take seriously the importance of finding talented and motivated staff members and work at making our organizations the kind of place they want to stay for a while.
3. Finances
What owner or manager doesn’t love to see revenue growth? None. But revenue growth does not always result in increased profitability. Finances are to a business what fuel is to an engine – an enabler for long-term growth and essential for daily operations. All it takes for this critical infrastructure to fail is faulty assumptions, ignored emerging trends, fraud, or poor spending decisions. In the 1920s, an oil baron in the southwest U.S. built a house that included a ballroom, 12 bathrooms, three kitchens, a swimming pool, a golf course, and five lakes. Yet, only a few years later, he was broke, the financial engine ran dry, and there were no reserves in the bank. To guard this critical infrastructure, a business owner needs to be a wise steward and carefully manage his or her P&L and balance sheet.
4. Sales and Marketing
Construction. Retail. Financial services. Publishing. Higher Education. Insurance. Regardless of the business, sales are the main source of income. Every organization needs a core group of “finders” – those who are well-networked and gifted at sharing the benefits of your product or service in a way that results in customers taking action. However, a business without a well-grounded ethical foundation can result in a sales team running wild (for example, Perdue Pharma’s marketing of Oxy). With appropriate guardrails and compensation structures, sales can be a highly valued and important function, especially when the product or service adds unique value to the customer.
5. Culture
Every organization has a culture – a unique climate created and shaped by the values and beliefs of either a founder or an influential leader. For example, the founder of Zappos created a culture that acted like a big family. In contrast, Jeff Bezos created Amazon with a culture that focused on productivity and innovation. An organization’s culture influences things like how it treats people, how it handles compensation, what it believes regarding integrity, and how it defines success. According to one study at Harvard, companies with a strong culture increased net income 756% over 11 years. Culture is critical.
6. Technology
For simplicity, I am using technology to refer to hardware, software, and artificial intelligence. The impact of technology on almost every aspect of a business is a given. But, leaders can be blinded by their own biases and expertise. In the early 1990s, when Amazon was getting started, most retailers barely gave a yawn to online retail. It was also in the early 1990s when I was teaching in a college and the discussion of online courses came up. Once again, the brilliant minds dismissed it – education will never thrive online. Both of these are examples of leaders who made big miscalculations for their industries that had devastating effects. AI is now quickly emerging as a disrupter that leaders better pay attention to and learn how to utilize and adapt to its growing influence.
Our experienced team can help you guard your critical infrastructure through strategic planning, executive coaching, and leadership advising. Contact us to learn how.
Jay Desko is the President & CEO of The Center Consulting Group and brings experience in the areas of organizational assessment, leadership coaching, decision-making, and strategic questioning. Jay’s degrees include an M.Ed. in Instructional Systems Design from Pennsylvania State University and a Ph.D. in Organizational Behavior and Leadership from The Union Institute.