How to be a Better Listener

by Bert Shlensky | Nov 22, 2021 | General Management, Maximizing Effectiveness - Main

“Most people do not listen with the intent to understand; they listen with the intent to reply.” —Stephen R. Covey

We’ve all been guilty of it at one point or another. We get so caught up in thinking about what we’re going to say next, that we fail to listen to what is being said. But, when we don’t work on being a better listener, we rob ourselves of the opportunity to connect with others, gain valuable information, and truly engage in the conversation. So many miscommunications result from a failure to be a good listener and really take in what is being said.

cartoon showing husband and wife seated. Husband says, "When you said we needed to talk, you didn't say I needed to listen."

Meanwhile, most of us consider ourselves to be good listeners, when in reality, we could all probably benefit from improving our listening skills. And, acknowledging that we need to be a better listener is the first step.

Here are some examples of how poor listening occurs:

There is no question that there is more communication than ever today and that listening requires more attention, and prioritization. Many of us receive some combination of more than 100 emails, 2-3 hours of TV, 3-5 hours of interaction with a computer, read numerous books, magazines, blogs, and other papers, 1-2 hours of phone conversations, 1-2 hours with social media, 1-2 hours of podcasts, 2-3 hours of meetings, and even a little social time with our family and friends. It’s a lot to take in. How much do we hear and actually take in?

E-Learning Overload - How can we learn to be a better listener with all these distractions?

There is no escaping the fact that biases affect our attitudes and perceptions of individuals and information. While it is frequently associated with demographics, it is really much more pervasive. Aware of the fact that preconceived notions (either of a person or the content being discussed) have a dramatic effect on audience members’ understanding and acceptance of information, many presenters work to actively create positive perceptions.
One of the most significant aspects affecting listening is our perception of information. For example, I believe people don’t take enough risk. How much freedom do you allow innovative people to break rules? When do you provide support versus challenging subordinates and colleagues? While there may be analytical solutions to some of these, our predispositions are frequently more important in determining how we respond. Instead of asking questions, being a better listener, and learning more about an unconventional idea, we respond with resistance, usually because it feels safer than taking a chance.
The parameters of listening are constantly changing. New tools like Zoom, targeting, social media, etc. are constantly evolving while old ones decline. I am an original AOL customer who received a disk in the mail (how many of you even remember that?) and am in panic that AOL may cease to exist. However, that creates some great opportunities for companies who want to make mostly older customers feel comfortable—that is, if they’re listening to those concerns.
People love to talk, but hate to listen. Becoming a better listener is not merely not talking (though even that is beyond most of our powers); it means taking a vigorous human interest in what is being said. You can listen like a blank wall or like a splendid auditorium where every sound comes back fuller and richer.

Cartoon - Sign says "Active Listening, Session 1." One person says to the other "I'm afraid turn out isn't as high as we'd expected... three of them misheard the date, five got the time wrong, and everyone from marketing went to a hotel in Norwich by mistake!" We all need to learn to be a better listener

We frequently debate the validity, objectivity, and bias of ineffective listening. However, simply recognizing its existence and making an effort to understand how we can improve is more important. We need to consider the problems and develop solutions.

Want to be a better listener and communicator? Try some of these suggestions:

Repeat back what you think you heard. This tactic gives the speaker the chance to repeat themselves if you misheard.
Follow Internet courtesy and practices. What we hear is greatly affected by the nature of the communication. Sending inappropriate emails by mistake is not a good practice, but happens all the time. Be courteous and brief. Target the right people and sites. YouTube, Facebook, and LinkedIn have quite different audiences and impacts. Ensure recipients are getting messages rather than creating spam or complex links.
Keep things interesting. In general, the audience, whether on the Internet or in person, forms its perceptions of a presentation in the first 90 seconds. As an admitted nerd, my presentations can be a little statistic heavy, which can translate as boring. Thus, I try to improve audience reception through tools like editors, comedy, stories, and pictures.
Keep the audience comfortable. Environmental issues can be the most ignored factor in communication. Licensing agreements, celebrity endorsements, and great environments are all designed to make the audience comfortable with presentations. Frequently, seminars are created with crowded schedules to justify the expense of taking people away from work. However, a poor technical speaker at 1:30 p.m. in an over extended morning session or at 5:30 p.m. after an all day session is most likely going to be ineffective. Research shows that serving food and not being the last presenter help to improve the impression you make on your audience. At one company, we had a motto for our presentations and meetings: “FOOD WORKS.” Fruit and penny candy are truly unheralded aids in making a great presentation.
Try to create a “WIN-WIN” environment when communicating. We all know positive feedback is received more favorably and, yet, we revert to criticism, blame, and a one-upping mentality in pressure situations. We seem to follow the common TV format of adversarial commentators that frequently provide more confusion than resolution. Try to keep things positive, constructive, and remember to strive for compromise.

"Most of the successful people I've known are the ones who do more listening than talking." - Bernard Baruch

The value of being a better listener is undeniable. It’s a skill and skills require practice and development. Understanding the purpose, content, and importance of communication can also help you improve outcomes. Because, let’s face it, communication is the key to a lot of things including relationships, business, and success.

Dr. Bert Shlensky, President of www.startupconnection.net, offers experience, skills, and a team devoted to developing and executing winning strategies. We guide your plans for business success and unlock your profits. Our process includes clear steps, and over 150 free articles and templates to facilitate your efforts and guide your process. We’re here to help you get on track and stay there as you move forward. We welcome comments, suggestions, and questions. You can write us at: bshlensky@startupconnection.net or call at 914-632-6977

The Potential of E-commerce is Just Starting

by Bert Shlensky | Nov 15, 2021 | Maximizing Effectiveness - Main, Operations

The pandemic was accompanied by an incremental increase in E-commerce. This was not a short-term blip; I believe we simply jumpstarted the inevitable. Therefore, we need to understand the strengths of E-commerce and maximize both the sales and marketing opportunities.

Cartoon showing proud parent saying "Honey, look how cute... the kids have started their own little business." Kids are creating an e-commerce lemonade stand.

Let’s look at how E-commerce is changing the way consumers engage:

E-commerce sales are now estimated to be about 30-35% of retail sales. Amazon has grown from $28 billion in 2010 to almost $600 billion in 2021. Google ads grew from $28 billion in 2010 to $147 billion in 2020.
Other industries are also dramatically changing and shifting to digital systems. For example, according to Jamie Dimon from Chase, “From loans to payment systems to investing, they have done a great job in developing easy-to-use, intuitive, fast and smart products.”
Retail is facing extensive challenges. Stores are closing and many companies are shutting down altogether. They are also facing higher expenses, decreased traffic, and require higher margins than E-commerce. Personally, trips to places like Lord and Taylor, Pennies, Sears, and K-Mart are now only memories.

Cartoon showing mall employees seeing a crowd approaching. One says "The good news is that the stores are crowded. The bad news is that it's because the websites are down." E-commerce affects us all in many ways.

These changes are creating significant opportunities for E-commerce. For example:

E-commerce can be simpler and more efficient than regular retail. Delivery, security, and customer service have dramatically improved, which makes it a better experience.
Prices are generally lower as E-commerce doesn’t have the inventory, personnel, logistics, and real estate costs of a brick and mortar store. Additionally, retailers with E-commerce are struggling to balance the costs and prices of two different strategies.
Marketing for E-commerce can be quicker, more flexible, and less expensive than retail. You can quickly see results, test different programs, and compare different strategies with E-Commerce, and testing and comparisons are in their infancy.
Both marketing and sales can provide you a customer or potential customer’s name, e-mail, what they bought, what they considered, and other information. These names can provide low-cost marketing information for years.

Cartoon with wife on computer asking husband "how did the internet get my bra size?" E-commerce frequently tracks your online habits and purchases.

Suppliers like Amazon and Google offer significant feedback and suggestions to improve performance and results.
E-commerce offers a much wider range of products including varieties, colors, competition, and promotions. They have a one or a few distribution centers while retailers have to stock multiple stores.
There are numerous marketing tools available including memberships, social media, e-mails, paid search, targeting, and follow up.
There is greater product information available including instructions, directions, ratings, reviews, videos, etc.
It can save time in terms of not going to a store, dealing with out of stocks and, most importantly, being available 24/7.
E-commerce offers a special advantage of being able to market to broader audiences including international and, at the same time, customizing messages to the individual.
A great opportunity for E-commerce is to improve search and information to better interact with consumers and provide a more personal experience. Research has shown that customers love personalized experiences, as it shows the business respects them enough to offer attention. It’s also proven to increase the customer conversion rate.
E-commerce can be especially beneficial to small retailers who can specialize and cater to local customers and competition.
E-commerce allows and encourages integration of sales, communication, branding, and marketing.

The potential growth of E-commerce is virtually unlimited. They key is spending the time to understand and take advantage of the opportunities. In particular, we need to better learn how to communicate with, market to, and provide assistance to the individual customer. Increasing efforts in communication, developing better E-commerce materials, and analyzing potential and results need as much attention as specific marketing efforts. Like most worthwhile endeavors, incorporating and/or improving your E-commerce offering may take some work and time to adjust, but the benefits can be a game changer for your business.

Dr. Bert Shlensky, President of StartupConnection.net, offers experience, skills, and a team devoted to developing and executing winning strategies. We guide your plans for business success and unlock your profits. Our process includes clear steps, and over 150 free articles and templates to facilitate your efforts and guide your process. We’re here to help you get on track and stay there as you move forward. We welcome comments, suggestions, and questions. You can write us at: bshlensky@startupconnection.net or call at 914-632-6977

Financing a Business

by Bert Shlensky | Oct 27, 2021 | Driving Profit - Main, Finance Articles

Financing a Business

Many clients start the entrepreneurial process asking the age-old question, “How do I raise money?” Unfortunately, beginning a business is a process that involves fulfilling a number of requirements before one can even think about raising money. The requirements for financing a business I am referring to may seem obvious, but they are critical to actually raising money:

How much do you need?

How and when will you pay it back?

Why should someone have the faith to invest money in your venture?

What is the expected risk and return?

What are the resources you have or plan to have to support the request?

Financing an Ongoing Profitable Venture

Let’s start with the easiest situation just to understand the parameters.

You have a growing and profitable business with a history of success and little personal or business debt. You have a specific plan to buy physical assets which you can then use as collateral which can be paid back from profits over a specified period. You also have an excellent relationship and history with your bank. Together, these aforementioned facts meet all the simple criteria necessary to obtain a loan for financing a business.[pullquote]Before raising money make sure you have answered these questions:

How much do you need?
How and when will you pay it back?
Why should someone have the faith to invest money in your venture?
What is the expected risk and return?
What are the resources you have or plan to have to support the request?[/pullquote]

In simple terms you have:

Credit Score of 700 or above.
Cash flow sufficient to make required interest and principal payments.
Sufficient capital and collateral to cover the entire loan.
A specific plan, history, and experience to develop confidence in the lender to make the loan.

Financing For a Startup

Now, let’s look at a more typical situation of a startup company. You have a great idea, a little experience but no history, and minimal assets. You (your venture) needs money for development and startup costs before you even really begin.

Tech companies, service companies and many retail businesses, are perfect examples. Before describing the options for financing a business open to you, let’s review some general tips you must consider in your efforts to procure financing.

It is absolutely critical you have a credible plan to convince investors you will succeed and pay the money back. The plan, when laid out properly, should build confidence and trust by the investor in you and your business.
You must know your numbers and facts cold.
- Make sure to understand your assumptions, calculations, and forecasts and be able to answer all related questions. You need the energy, commitment and enthusiasm to obtain financing but it needs to be supported by real facts.
- Be sure to have an accountant you are comfortable with and financial statements you understand and can explain.

Where to Look for Funding

[pullquote]Essential Considerations to Assist in the Procurement of Financing

Develop a credible plan.
Know your numbers and facts.
Have an accountant for guidance.

[/pullquote]There are several potential sources of funds for start-up businesses that should be considered when financing a business. Each potential source should be evaluated on the basis of probability, costs, long-term viability, risk, and business constraints.

Equity – Personal, Friends and Family

Equity is the amount of money you can put into the business on your own:

Money you don’t have to borrow or pay back.
Equity may also include effort (sweat equity) put into the business for it to get underway.

In general, it is difficult to start a business without any of your own, a friend’s or family’s equity to show commitment. Keep in mind it is much easier to obtain other investors if you are contributing 10% – 50% of the financing depending the project in question.

Investor Equity

Investor Equity can come in a variety of different forms. Depending on the type, they can provide significant funds especially for businesses such as services which traditionally have little assets or collateral. These investor equity sources typically expect more risk but in return correspondingly expect returns. As a general rule, they require agreements that place a number of constraints on the business, e.g. salaries to you and how expansion might be made and carried out. As part of the equity investor formula, the more you give up, the less is left for you and the less control you have, particularly, if you have to give up more than 50% of your equity.

Equity investors vary but can include:

suppliers,
partners,
venture capitalists,
private equity dealers,
private offerings,
private investors, and
Angel investors.

Traditional Banks and Loan Institutions

It is important to remember that banks need to balance their goals particularly when viewed in relation to loaning money. Banks reduce risks and make certain they get paid back. Understanding and acknowledging these factors can help reduce some of the stress one feels when dealing with bank bureaucracy, requirements, paperwork, etc. As stated earlier, the better your history, relationship, collateral, ability to repay loans, plans, etc., the higher the probability of getting a loan. Keep in mind that obtaining a traditional bank loan for financing a business startup is a more and more difficult undertaking than it was decades ago.

Additional Sources to Help Find Money and/or Guarantee Loans.

Community Based Lenders

Non-profit, independently financed, private or public organizations, which often make loans to small businesses or entrepreneurs who do not qualify for traditional commercial bank loans. These loans are often referred to as “Character Loans.” They do not require strict credit, cash flow or collateral requirements. They still require, however, character, a business plan and location in/or near the local community.

Finding a Guarantor or Co-Borrower for Obtaining a Loan.

Often time a family member or close friend is reluctant to give you cash upfront but they think you have a good idea for a business and a good chance to succeed. They may be willing to either guarantee a loan or co-sign for a loan.

Small Business Administration (SBA) Loans

The SBA does not lend money, rather it provides guarantees to a bank. The guarantee means, if a person does not repay a loan, the SBA will pay a major percentage of the loan back to the bank. All banks can make SBA guaranteed loans, but most have restrictions on what types of loans they are willing to make. Just as with most traditional banks, the SBA only wants to guarantee loans to people who are likely to repay the loan. All SBA loans are made to individuals for a business. The individual is personally liable to repay the loan.

Financing Outside the Box – Guerrilla Financing

To find money to finance your business you must consider every possible choice available. Going outside the box to find financing is often referred to as, “Guerrilla Financing.” The more you know about your business, the more options are available. Remember, both lenders and investors look for the same thing in a business – VALUE. Projected earnings and even management skills are considered part of this value proposition.

Crowdfunding

If money is the only thing stopping you from doing something good in the world, stop waiting and start doing some good! Nothing better symbolizes entrepreneurship than fundraising. Social entrepreneurs are no different. Today, there are a host of online resources for what today has become known as crowdfunding.

Crowdfunding was initially used by “social entrepreneurs” who turned to this method as a way to fund their projects, films, books, and social ventures.

Today, one of the best know crowdfunding sites is Kickstarter.com. Kickstarter is the 800 pound gorilla in crowdfunding, originally designed and built for creative arts, many technology entrepreneurs now use the site, some reporting to have raised millions of dollars. The Kickstarter funding model is an all-or-nothing model. You set a goal for your raise; if your raise exceeds the goal, you keep all the money, otherwise, your supporters don’t pay and you don’t get anything. This protects supporters from some of the risk of you running out of money before your project is completed. There are a now a number of her crowdfunding sites to consider: Indiego, Crowdfunder, Rockethub, Somolend, and more.

Free Financing Through Operational Belt Tightening

We frequently worry about financing a business but often fail to pursue strategies that might help avoid the need.

There are numerous activities that companies can do to reduce investment costs and lower overall expenses. The most common include:

rent instead of purchasing,
deferring payable terms,
shipping direct to consumers,
outsourcing etc.

Making these changes can have real impact on an organization as it relates to costs and investment. Putting these changes into place can make investors happier. These opportunities need to be considered as critical operational components. As an example, many start-ups are required to prepay expenses due to a lack of credit experience. Similarly, borrowing on credit cards is usually discouraged because of the associated high interest rates. Despite these problems, businesses can use credit cards to avoid pre-payments. All they have to do, for example, is to pay credit card charges on time which could translate to 10-30 day free money.

Financing Concerns

Finding Investors needs to be a two way street. Clearly you want to avoid loan sharks, etc. However, there are real considerations businesses need to consider when seeking investors:

Evaluate the bank by finding out what it has to offer that will fit your needs and your capability for assuming the debt.
Many entrepreneurs use smaller financial institutions which don’t provide the type of loans or products a business needs for growth:
- Letters of credit,
- wire transfers, and
- credit cards

Above are examples of services that may be required.

Don’t be afraid to ask for references of other clients and talk to higher level executives in the organizations you are seeking funds.
Determine the process, time, and requirements from the organization where you are seeking financing. Assume there will be delays, more information requests and mistakes. For example, when you send information be sure it is received.
If possible, encourage efforts to understand your investors, site visits, introductions to you and their participants, etc… For example, in my bank, I have a customer rep who has been there for years. He warns, guides, and facilitates, and even sometimes breaks rules, to expedite my needs.
Share changes in the business that may affect your needs or the investor’s prospects. This can be accomplished formally or informally depending on the issue. For example, if you may need letters of credit, make sure to plan ahead instead of waiting for the supplier demand?

I learned a simple rule in raising money several years ago. If you are doing well and providing investors with expected returns and little risk, the relationship is great and they may even encourage you to grow faster than you should. On the other hand, if you are missing plans and affecting investors’ returns, the relationships can sour quickly. This result has some simple tips that summarize the process of finding investors:

It is a two way street that requires honesty, understanding and communication.
Don’t overestimate what is needed to meet your plans.
Understand your needs and risks to find the right kind and type of investors.
Develop plans, measure results, and satisfy investor requirements to monitor investor potential concerns.

Skill Is Only the Start of Successful Change

by Bert Shlensky | Oct 7, 2021 | Planning, Startup Main

It is always incredible to see the training, skill, and excellence displayed at the Olympics. However, the passion, focus, and commitment are even more impressive. When working toward a goal, we want to see that our efforts are producing successful change. Yet, too often, the majority of our focus is centered on analytics, expertise, skill, profits, and science. Unfortunately, these tools sometimes ignore other critical requirements for successful change and better decision-making, such as: passion, focus, trust, effort, risk, and commitment.

I hope that my passion will be a marketable skill

These elements of successful change are frequently lower priorities because they are difficult to measure and make analysts uncomfortable. For example, decision makers frequently hate considering risk, despite the fact that it is present in almost every issue. Additionally, due to the high levels of uncertainty involved, we are often slow at measuring results in periods of rapid change like a pandemic, inflation, and new innovations.

"You see things; and you say, 'Why?' But I dream things that never were; and I say, 'Why not?'" - George Bernard Shaw

Change is hard, even when it’s successful change, we are often hesitant to adapt.

As a business consultant, I constantly hear, read advice, and see comments focused on worries, concerns, caution, etc.—basically, all the old paradigms related to achieving business success. In my experience, more attention needs to be given to the areas that are difficult to measure. Some suggestions to accomplish this include:

Positive thinking is vital. A good chance at success requires a balance between reality, paranoia, action, and positive thinking. An interesting tactic is to focus more on how you succeed with some clients than fail with others.
Positive thinking does not necessarily mean avoiding or ignoring negatives. Instead, it involves making the most of the potentially bad situations, trying to see the best in other people, and viewing yourself and your abilities in a positive light.

"When you've finished your affirmations, dear, don't forget to put your trousers on."

Create a positive culture. Say please, thank you, and show that you care about people via praise and encouragement.
Accept that operating a small business is a process. Recognize that you will make mistakes. Your goal must be to develop, test, measure, and adapt rather than give up after the first or second problem.
Encourage open communication, a sense of realism, and focus on problem solving. Be sure to constantly assess your situation. Develop expert support and, when appropriate, have discussions with outside and inside colleagues.
Be prepared to pivot quickly. The market changes constantly and so do your customers’ lifestyles. So, you need to be able to shift along with it. By expecting that your market can change from year to year, you’re being proactive in your thinking, and can create flexible plans to adapt to these changes.
Know your sh*t, but be ready to listen. There is extensive research supporting the idea that people don’t change unless they believe in it.So, when given the opportunity to argue your case, try to emphasize the benefits for the other party. It’s well proven that tactics like collaboration, trust, and listening work better in decision making than dictating, lecturing, and proclaiming false expertise.
Develop, test, measure, and adapt. Many plans, forecasts, and proposals are done in a static format with one dimensional analysis and results. They’re usually flawed because we live in a more dynamic and interactive world. For example, branding, marketing, pricing, and operations all must be viewed as an integrated program rather than separate and isolated activities. Similarly, businesses need to have alternatives at the ready, as well as a process in place to adapt. Mistakes will occur, but remember, Steve Jobs got fired and Tom Edison tested thousands of light bulbs before succeeding.
Understand your goals, resources, and risk. In particular, really understand your market analysis, competition, how and why your company is different, and why customers should care. Are you focused on long-term growth or quick profits? While testing alternatives is a great strategy, ensure that you are focused on priorities that you can execute well and that will have the most potential.

"Skill s are cheap. Passion is priceless." - Gary Vaynerchuk

Analytics is an incredible tool for improving progress, developing alternatives, and measuring outcomes. However, in order to achieve successful change, it needs to be supplemented with passion, effort, commitment, and focus. Without these, it’s much easier to throw in the towel when things get difficult. You may have been born with the innate skills necessary to win countless gold medals, but without the drive, determination, and dedication to go for it, those natural abilities may not reach their full potential. It’s the passion that pushes you to succeed.

Dr. Bert Shlensky, president of www.startupconnection.net, offers experience, skills, and a team devoted to developing and executing winning strategies for businesses of all kinds. This combination has been the key to client success. His books for the business entrepreneur: Marketing Plan for Startups and Small Business and Passion and Reality for Business Success, are available at www.startupconnection.net.

Dr. Shlensky is a graduate of Sloan School of Management at M.I.T. He served as the president of WestPoint Pepperell’s apparel fabrics business & President and CEO of Sure Fit Products. Having provided counseling to over 2,000 clients, he now focuses on working with select startups and small businesses.

Contact us at: 914-632-6977 or BShlensky@startupconnection.net

Testing Assumptions Can Result in Better Decisions

by Bert Shlensky | Sep 28, 2021 | Operations

We all know what happens when we assume… And yet, how many of our decisions are based on untested information and assumptions? Have you ever been told to wait an hour after eating before swimming or you’ll drown? Where did this information come from and why do we accept it to be true?

Comic about what happens when you make assumptions.

Bubbe-meise is a Yiddish term used to describe old wives’ tales. Some examples include: It’s bad luck to open an umbrella in the house. Eat all your food—there are starving children in Europe! Chicken soup will cure anything!

In general, we tend to accept beliefs, data, news, teachers etc. as valid. Even putting aside lies, probabilities, bias, incompetence, etc., we accept a lot of bad information, assumptions, and suggestions. Why is this?

We need to question more, check resources, and test assumptions in order to make better decisions.

Cartoon with child telling storyteller: "This fact-checking site says no cow has ever jumped over the moon." — Frank and Ernest Comic

Perceptions and inherent patterns can also cause inadvertent actions. Recently, social scientists have focused on how we make seemingly obvious decisions. The results show most people tend to be risk adverse, avoid change, and accept the most comfortable alternatives. So, while we can work to change a bad decision at any time, we frequently avoid, delay, or defer change and, thus, draw out a negative situation. For example:

Denying the effectiveness of COVID vaccines is just unexplainable. For years, we have accepted seat belts, polio and various other vaccines, not driving while drunk, and many other safety measures. The vaccines are just a similar precaution to save lives.
Many economic proposals ignore that the k economy is getting even more evident. The k economy argues that economic recovery is experiencing different rates among the poor and the affluent. Specifically, the poor are experiencing even more problems while working class and the rich especially are experiencing exponential gains. Excluding this information is irresponsible and will only produce inaccurate conclusions.
Discussions about returning to work and school are frequently based on personal opinions and biases. Why can’t we recognize we lack perfect information and rely on and test the knowledge we have?

The solutions to these issues are not simple or obvious. However, we can pay more attention to alternatives, successful examples, and valid data while focusing less on personal opinions and bias. In particular, we need to include the parameters and process in our deliberations. Other helpful strategies include:

Get the politics of the issues out of the discussions. How many poor decisions are made because we think that’s what the boss wants? Or because “that’s the way it’s always done?” Or because we’re afraid to speak up? Or because we refuse to acknowledge that the situation has changed? Drop the ego and make fact-based decisions.
Utilize analytics. This is an incredible tool for improving success, developing alternatives, and measuring outcomes. However, analytics can be less reliable when the data is wrong, we assume invalid relationships, sampling is inappropriate, and risk is not considered.
Review and evaluate processes and decisions. It is unreal to me that objective testing mostly outperforms personal interviews in staffing decisions. But, the reason is mostly because of poor training and bias.

"Did you fact check this before reposting it?"
(response) "I don't need to. It agrees with my preconceived view and biases, so it must be true!"

Stop using old or incorrect data. We need to check that our sources are correct and up-to-date. The pandemic has significantly affected data and trends using 2020 information. The census shows some dramatic changes in the population—in particular, we need to consider diversity. For example, different regions have significantly different ethnic characteristics.
Don’t ignore facts and tradeoffs. Going back to the office has many tradeoffs such as commuting time and communication among employees. We need to understand the issues, develop flexible solutions, and test various alternatives rather than relying on personal preferences of people.
Consider the conditions of a situation. Facts are frequently more independent than we think. If you flip a fair coin, the odds are still 50-50 (regardless of the last few flips because the flips are independent). However, sports analysts have proven that certain conditions, like left-handed batters hitting to right field, are more probable.

"The most misleading assumptions are the ones you don't even know you're making." - Douglas Adams

Don’t assume cause and effect. We frequently jump to conclusions before doing a proper analysis. Differing and multiple goals (such as short-term and long-term) can impact the understanding of cause and effect. Medical symptoms are often incorrectly diagnosed because a correlation was detected, which could be mere coincidence. Too often, an assumption is made and a diagnosis is given before things like environment, heredity, or psychological factors are even taken into consideration.
Check your biases. The biggest issue is probably bias, which is most evident in political and economic arguments. Questions like: Why are the poor are poor? What is the impact of IQ? How will the stock market perform? What are the causes of crime? These types of questions all involve a complex analysis of a variety of factors. And yet, everyone seems to chime in with an unchecked, biased opinion.

Bias is one of the greatest complications when it comes to accuracy in the scientific analysis of decisions. This includes statistical problems like sampling, measurement, and development of information. I also believe that social bias can be more impactful than statistical bias—this includes our preconceived perceptions and assumptions about factors affecting decisions. Cultural and environmental factors also affect bias.

Cartoon with Cat telling growling dog: "Have you considered unconscious bias training?"

Analytics, tradition, and experience are all valuable tools that help improve decision-making. However, we need to ensure that the assumptions behind those tools are accurate and reliable. In particular, our rapidly changing environment (especially in regard to issues like COVID) requires regular testing and validation. Similarly, creativity and intuition that defy some analyses are becoming increasingly necessary. Search alternative causes and solutions, test your assumptions, and always ask yourself: Why do I believe what I believe? How do I know my information is correct?

Dr. Bert Shlensky, President of www.startupconnection.net, offers experience, skills, and a team devoted to developing and executing winning strategies. This combination has been the key to client success. We welcome comments, suggestions, and questions. You can write him at: bshlensky@startupconnection.net or call at 914-632-6977

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