Antidote to activism: high performance

The Best Antidote to Shareholder or Influencer Activism: A High-Performing Organization

In today’s fast-paced business environment, companies are constantly under the microscope. Shareholder activism and influencer commentary are at an all-time high, exerting pressure on boards to respond to critiques and adapt to ever-evolving market expectations. While such activism often stems from well-meaning intentions — pushing for stronger returns, better governance, or more responsible business practices — it can quickly become a distraction, diverting attention from the core business.

However, there is a simple and powerful antidote to these external pressures: running a high-performing organization.

Performance is the Best Defense

No board can afford to ignore shareholders or influential stakeholders. But the most effective way to safeguard a company from their potentially disruptive demands is to ensure it’s performing at the highest level. A strong, thriving business speaks for itself, with results that demonstrate competent leadership, strategic growth, and sound financials. When performance is at its peak, the noise from outside critics tends to diminish. Why? Because results speak louder than any activist agenda.

A high-performing organization creates shareholder value organically, satisfies customer demands, and fosters innovation — all of which leave little room for external parties to argue for drastic changes.

The Right Leadership is Essential

The foundation of any high-performing organization is its leadership. If a company is underperforming, the root cause often points to the executive suite. Boards must take a hard look at their leadership team, starting with the CEO, CFO, and other key executives. Are they the right people to drive the organization forward?

Often, board members already know if there’s a leadership problem. Yet, despite this knowledge, too many boards hesitate to act, allowing the business to stagnate and opening the door to activist interference. It’s a dangerous game to play, especially when replacing ineffective leaders is a crucial step to improving performance.

The Power of Replacing Key Leaders

Changing out leadership, especially at the top, can be a daunting task. CEOs, CFOs, and other key executives often have deeply entrenched relationships with board members and employees, which can make the decision to replace them fraught with emotion. However, the responsibility of a board is to prioritize the health and performance of the company above all else.

Replacing a leader doesn’t just send a message to the broader organization — it signals to external stakeholders, including activist investors and influencers, that the board is committed to excellence. It shows that the company is not willing to settle for mediocrity and is actively taking steps to course-correct when needed. This proactive approach minimizes the leverage external critics can gain, as it demonstrates that the company is already on a path to improvement.

Leading Performance and Setting the Right Culture

Once the right leadership team is in place, the next step is creating a culture of performance. Great leaders are not just there to make decisions; they inspire the organization, rally teams around a shared vision, and foster an environment where employees can thrive.

A high-performance culture values accountability, continuous improvement, and results. Leaders should set clear goals, track progress diligently, and ensure that the entire company is aligned with its strategic priorities. Importantly, a culture of performance doesn’t happen overnight — it requires sustained effort, consistent communication, and a commitment to excellence at every level.

A Sustainable Solution to Activism

When a company is performing well, delivering strong financial results, and fostering innovation, it’s much harder for external critics to gain traction. Shareholder and influencer activism often thrive on perceived weaknesses — underperformance, lack of strategy, or ineffective leadership. By addressing these issues internally and proactively driving performance, boards can effectively neutralize many of the concerns that would otherwise fuel activist agendas.

Of course, shareholder activism won’t disappear entirely. But a high-performing organization provides a compelling counter-narrative. It allows the company to stay focused on its mission and goals, rather than getting bogged down by the demands of outside parties.

Conclusion: Proactive Leadership for Sustainable Success

In the end, the best defense against shareholder or influencer activism is a great-performing organization. If the leadership isn’t driving results, boards must have the courage to make the necessary changes. By ensuring that the right CEO, CFO, and other key executives are in place.