Lexus vs Prius: Why “Good Enough” Leadership is Often Best

My wife and I are Lexus owners. Specifically, we drive a Lexus HS250h, a hybrid sedan that shares a lot of its DNA with the Toyota Prius. When we were car shopping years ago, we actually test drove both the Lexus and the Prius. The decision was quick – within moments of driving the Lexus, we knew it was the better fit for us.

We told ourselves it was a practical choice. We were replacing a problematic car and had racked up significant mileage on our Toyota Corolla in a short time. However, if I’m honest, it was also a bit of a splurge. Neither of us had ever owned a luxury vehicle before, and we had the financial flexibility to indulge a little.

The truth is, a Prius would have been perfectly adequate. It’s a reliable car that would have comfortably and efficiently gotten us where we needed to go. Recognizing this distinction is vital, especially when we consider our limited resources, particularly as leaders. I often encounter managers who seem to expect “Lexus standards” in every aspect of their team’s work – demanding maximum effort, time, and resources on every task, with zero room for error. They push for A+ performance constantly, aiming for impossibly high benchmarks.

But here’s the critical point: When everything is prioritized as critical, nothing truly is.

There are times when achieving A- or even B+ results is perfectly acceptable, even strategically smart. Economists refer to this principle as “good enough is best.” Think about washing your car. Spending five hours detailing your car might yield a marginally better result than a 30-minute wash, but the immense time investment simply isn’t worth the slight improvement for most people.

Effective leaders understand the art of this trade-off. They discern when “Lexus-level” excellence is truly required and when “Prius-level” performance is sufficient. Certainly, strive for Lexus results when it truly matters. The core deliverables for your clients, whether internal or external, should consistently reflect Lexus quality. When these critical areas are at stake, it’s time to invest more, work harder, and mobilize resources. Demand the highest standards and ensure everyone is fully engaged.

However, it’s equally important to clearly differentiate between tasks that demand that level of intensity and those that don’t. A key question to ask yourself: If a task isn’t executed to “Lexus quality,” will anyone, besides yourself, truly notice or care?

For instance, we’ve invested considerable time in website and graphic design over the years. While our websites are visually acceptable, our organization isn’t known for its stunning graphics, nor is website design central to our core mission. In this area, achieving A- or B+ results is perfectly adequate and allows us to focus our “Lexus-level” efforts where they truly count.

Are you clearly communicating to your team when Lexus-level results are necessary and when Prius-level results will suffice? Share your thoughts in the comments below. Remember, the Prius is an excellent car too, perfectly suited for many journeys.

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