Cognitive decline; one size does not fit all
Mental capacity after 80 is a complex issue with a lot of individual variation. There isn't a one-size-fits-all answer.
With all the noise about the mental capacity of leaders in their 80’s - running arguably the most powerful country in the world - I thought it might be interesting to see the parallels in corporate life which inarguably affects each person’s economic prosperity, innovation and wider social impact even more directly.
A leader in corporate life failing to step down when they should can have a significant negative impact, affecting both the company and its employees. Accepting the premise that one size does NOT fill all, here's a breakdown of the potential consequences of aging and it’s impact on others:
Natural Changes:
Cognitive Decline: Some degree of cognitive decline, such as slower processing speed or occasional forgetfulness, is common with age. This doesn't necessarily lead to dementia, but it can impact daily activities.
Crystallized Intelligence: This refers to accumulated knowledge and skills. Many people retain strong reasoning and problem-solving abilities in their 80s, particularly related to their life experiences.
Company Impact:
Stagnant Performance: Leaders past their prime may lack the innovation and adaptability needed to keep the company competitive in a changing market. They might cling to outdated strategies or be slow to adopt new technologies.
Declining Morale and Employee Retention: Employees may feel demotivated and frustrated if they perceive the leader as ineffective or out of touch. This can lead to low morale, decreased productivity, and higher employee turnover.
Damaged Reputation: If the leader's shortcomings become public knowledge, it can damage the company's reputation and investor confidence. This could make it harder to attract new talent and business opportunities.
Missed Opportunities: A leader who is unwilling to step down may block the path for younger, more capable leaders. This can prevent the company from bringing in fresh perspectives and ideas.
Employee Impact:
Lack of Growth Opportunities: Experienced leaders can provide valuable mentorship and guidance. However, if they stay too long, they can create a bottleneck, hindering the career advancement of talented employees.
Disengagement and Burnout: When employees feel stuck under an ineffective leader, they may become disengaged and lose motivation. This can lead to burnout and a decline in overall well-being.
Reduced Innovation: A leader who is unwilling to adapt may stifle creativity and innovation among employees. They may be resistant to new ideas or hesitant to empower employees to take risks.
Lower Job Satisfaction: If employees feel the company is not prioritizing its future, it can significantly decrease their overall job satisfaction.
It's important to note that not all leaders who stay on longer than some might think will have a negative impact. Experienced leaders can provide valuable stability during times of change. However, when a leader's age or declining abilities start to hinder the company's progress, a smooth transition to new leadership is crucial for long-term success.
A classic turnaround story is that of Apple in the late 1990s. After a period of decline, Steve Jobs returned to the company as CEO in 1997. He implemented a number of key changes, including streamlining product lines, focusing on design and innovation, and launching the iMac. These moves helped to revitalize Apple's brand and turn the company into the tech giant it is today.
Steve Jobs was 42 years old when he returned to Apple as CEO in 1997. The former CEO, Gil Amelio, was 56 years old at the time. Jobs' return and subsequent turnaround of Apple is a well-known example of a new leader successfully reviving a struggling company.
