How
do you view the world? Have you ever stepped back and asked yourself if your
outlook is correct? You might be wondering, “How can you measure that?” Well,
you can’t because we all have a particular way of viewing the world, which is
based off of genetics, personal experience, economic status,
political/religious preference, education, and a slew of other factors. But,
you can assess whether your perspective
is effectively contributing to achieving your goals.
We’ve
all been told that when one approach is repeatedly not working, it’s time to
try something else. The same goes for perspectives. Sometimes, problem solving
is as simple as looking at things in a different way. After countless attempts,
a goal may seem unachievable—and that is when it’s time to flip your outlook.
As
business owners, it’s been ingrained in our brains that planning, budgeting,
and expertise are key to success. However, a recent shift in perspective led me
to the conclusion that they actually aren’t that important as we were once
taught to believe. Let me give you an example:
Last
month, I received and invested in four new issues and profited from all four.
One even doubled in a day. They were from different industries, but all related
to technology in some way. The most interesting aspect was that they all lost
significant money, but the losses are mostly growing. This made me take note of
the fact that many new businesses seem more focused on sales growth and
potential rather than targeting profitability. Amazon is a perfect example of
this, as it was viewed for many years as the poster child for growth and losses.
Now, companies like Uber and Wayfair are trying to emulate that model.
This
trend clearly illustrates how traditional methods of planning and forecasting
businesses are dramatically changing in nature and diversity. We’re used to the
notion that traditional small businesses need to show profitability in order to
pay bills and find investors. But, the reality for many new businesses (such as
apps, sharing sites, and innovative technologies) is the requirement to prove
their concept’s worth through larger scale, bigger investments, and exponential
growth/losses over several years. Additionally, forecasts of these larger
entities are generally meaningless and inaccurate because of the risk and
uncertainty.
With
all of that in mind, it’s easy to see how, when it comes to setting goals,
venture capitalist firms strive for potential 100 million-plus entities while
the small entrepreneur is often pleased with a million-dollar entity that makes
10% profit. Each person’s perspective is informed by their circumstances,
needs, and perceived capabilities. Some entrepreneurs are just out of college,
living at home, and may have a somewhat unrealistic view of life. Others are seasoned
venture capitalists or investors (think Shark Tank judge) looking for the next
billion-dollar deal. And then there are business owners in their 30’s or 40’s
with extensive expertise and experience who need to make a living quickly. With
very distinct backgrounds and needs, each of these individuals will come up
with a unique plan of action to achieve their goals and a strategy for
assessing risk, competition, market size and growth, resources, experience, and
expertise.
Circumstance
informs goal setting and perspective makes or breaks whether those goals are
achieved. Consider the following:
The Kaufmann Foundation, a group that promotes business growth, estimates there are about 400,000 new startups every year and that 90% of them will fail before their fifth year.
There are an estimated 131 startup companies that have achieved over $1 billion of valuation in the last few years.
Thus,
in roughly five years, the odds are about 1 in 15,000 that a company will reach
$1 billion in valuation, and 1 in 10 (mostly small companies) will survive five
years. There are, of course, significant variations in these outcomes. For
example, small companies often get bought or sold and many large companies
succeed, but have less than $1 billion valuations.
Also
noteworthy is the fact that most of the billion-dollar companies achieved
exponential growth, but also lost money over several years. For example, Uber,
though a leader in startups, lost over $5 billion in the last quarter.
Compounding the issue is that early investors were paid $4 billion in that
quarter which further complicates the situation. Similarly, nearly every new
large startup shows a dramatic increase in sales, but even more dramatic losses.
The
takeaway, perhaps, is that, with this knowledge, goal setting might benefit from
a shift in perspective. Rather than implementing a strategy that targets outcome,
an approach that focuses on immediate results may be more beneficial. The point
is: the times are changing and what once worked won’t work forever.
Things
to keep in mind:
Know your goals, resources, and risk. In particular, really understand your market analysis, competition, and how and why your company is different. Why should customers care? If you can’t answer this question, shift your perspective and look at your company through the eyes of a customer or a competitor.
For small business owners, it’s crucial to consider proper planning, adequate research, business excellence, and well-executed programs. Ensuring profit is critical to being in the 10% that succeed. It’s also important to recognize when any of these areas are failing. For instance, if you’re having problems with planning, consider a different outlook. You may be looking at the issue with blinders on. As previously stated, problems are often solved by simply stepping outside of your traditional way of thinking and assessing the situation from a different perspective.
If you require exponential growth to ultimately succeed, you still need to understand metrics. No matter the size of your business, know the risk and uncertainty, develop the resources, assess the ultimate market, and ensure there is at least a potentially profitable metric down the road. Is cash flow relevant and when?
A plan of action for an unrealistic goal will look impossible while a plan of action for an achievable goal may seem daunting, but doable. Dr. Bert Shlensky, president of www.startupconnection.net, offers experience and 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 book, “Passion and Reality for Small Business Success,” is available at www.startupconnection.net.
Imagine waking up and being excited about going to work.
What would it take for that to happen? Perhaps a boss who understood your
needs? Coworkers who were easy to collaborate with? Clear communication between
departments? A challenging, but manageable workload? Good pay, benefits, and
some fun office perks like free lunches? In short, most of us require a work
environment that supports our needs while encouraging productivity in order to
be happy and successful in our jobs. Employee satisfaction relies heavily on
company culture.
Establishing a successful culture is crucial for the overall
progress of any company and maintaining a positive atmosphere with clear
expectations is essential to facilitating employee performance. A great
strategy that lacks a supportive culture is sure to fail, while an environment
where people feel they are being given the recourses to excel will result in a
much higher success rate.
So, how do you create a successful culture?
Encourage
Communication
Surprise! When everyone is on the same page, things run more
smoothly! Set goals and develop strategies to achieve them. And then share those with your teams.
Inclusive environments foster a stronger sense of belonging, which can increase
performance.
Accept Failure
It’s inevitable. Acknowledging that fact from the beginning
enables everyone to get over their “fear” of it happening. If employees know
they will be supported when it happens, they’ll be more likely to take
(appropriate) risks, which can lead to innovation. When people are afraid, they
can’t perform to their full potential, as fear is one of the leading factors
that holds us back and prevents us from trying new things.
Look for the Positive
We’ve all felt what it’s like to work with/around negative
people—their energy sucks everyone else down to their level. We feed off of
those around us. Create an atmosphere where everyone lifts one another up. Finger
pointing and attempting to place blame is never productive. When a problem
arises, work to find a solution. When mistakes happen, look for the lesson to
be learned and grow. Everyone will be better for it. A culture that focuses on
learning from mistakes will always be more equipped to deal with them when they
arise.
Provide Assistance
Make sure employees have the resources they need to succeed.
That may mean providing additional training, one-on-one feedback, updated
equipment/software, or extending deadlines. Understand your employees’ needs
and let them know they can rely on you to back them up.
Ensure Employees Have
a Voice
This can be as simple as a suggestion box where employees can
anonymously provide feedback. The key here, however, is that all suggestions
must be thoroughly considered. Just allowing people voice their
thoughts/opinions/concerns isn’t enough. Their suggestions must be
appropriately addressed as well.
Treat People Equally
and Individually
This might sound contradictory, but it simply means that,
while everyone should be treated fairly and equally, their individual needs also
need to be taken into consideration. Some might need more supervision or verbal
encouragement while others thrive being left with complete autonomy on a
project.
Bring Back Basics
We all want to be respected, appreciated, and acknowledged.
Be kind and remember that a simple, “Thank you,” goes a long way. And don’t
forget to have some fun. Sure, it’s work, but we all like to have fun while
doing it. Have a company picnic, organize a holiday party, or join an
intramural sport with coworkers. The more you bond outside of work, the
stronger the team will be at work.
Obviously, each environment is unique and the type of
culture you cultivate will be specific to the needs of your individual
organization. While a majority of these examples are universal, it’s up to you
to decide what culture will work best for the success of your company.
Poll:
Which aspect of work
culture is most important to you?
(Please let us know
in the comments!)
Work/life balance
Benefits package (health care, PTO)
Flexible hours
Positive/likable coworkers
Feeling challenged
Dr. Bert Shlensky, president of Startup Connection ( www.startupconection.net ) is a graduate of Sloan School of Management at M.I.T. He served as the president of WestPoint Pepperell’s apparel fabrics business as well as the President & CEO of Sure Fit Products. Having provided counseling to over 2,000 clients, his focus is on working with select startups and small businesses.
“Who’s in charge here?” A question frequently asked when things go wrong. We want answers when bad decisions lead us to less than ideal outcomes! We demand to know where blame should be placed for any negative situation we find ourselves in! And we tend to assume that all decisions are made at the top level—and, too often, they are. And that’s the problem. Because the best decisions usually include operational features. Learn to make better decisions.
It’s a common misconception that the smartest, most capable members of an organization are at the top, “running the show.” But, that’s naïve thinking because a majority of us have been that employee dealing with an incompetent boss, right? Successful businesses (and governments) have learned that infrastructure, support, and teamwork are integral to effective decision-making. This is why leaders have advisors and the reason many companies utilize think tanks to make better decisions. Sure, there’s often a need for a strong “all-star” to be the face of a business or team, but organizations are finally acknowledging that operations are the glue holding everything together and communication between all levels is imperative.
With that in mind, it’s easy to see why the current trend shows that operations
and analytics are critical components of marketing and planning. Additionally,
automation, technology, customer needs, and the sharing economy are becoming
vital components of the branding and marketing process. Some examples include:
Internet
sales. In the beginning, delivery and security were thought to be major obstacles.
Today, quality customer service, heightened cybersecurity, and speedy delivery have
become virtually standard. Additionally, the elimination of several processing stages
(like those used in brick and mortar stores) can dramatically reduce costs and
prices.
Innovative
marketing strategies. Creativity, differentiation, and advertising have always been the focus
of traditional marketing and branding approaches. However, factors like value,
service, quality, and culture are producing better results. The evidence is
clear if you compare how brands in department stores target their customers
versus the way Amazon and other leading online stores interact with users.
So how do you utilize operations to make better decisions?
“All-inclusive” business structures. Companies are learning to value expertise and experience over the obsolete hierarchy system. Phrases like, “We have always done it this way,” and, “Because I’m the boss,” simply need to be replaced with a commitment to searching alternative options to find the best solutions.
Integrate Functions. For example, an organization’s Customer Service department is frequently owned by the contact center (voice, chat, email), while a marketing team manages its social media. There’s a silo that needs to be broken down with this relationship in order to keep everyone on the same page and maintain communication between departments.
Critical Analysis. More attention needs to be placed on analytics,
review, and alternative approaches. In particular, risk, probability, and goals
need to be taken into consideration as a critical part of problem analysis and
decision-making. An easy and free analysis tool is the Internet. Simply search Amazon
or Google for a better understanding of your competition.
Welcome failure. We view it as a “bad word,” but it’s part of Success. And an important one. Vince Lombardi got it right when he said, “If you aren’t making mistakes you aren’t trying hard enough.” After all, how many times did Thomas Edison fail before he succeeded?
Curb exorbitance. We all know the expression, “If at first you don’t succeed, try, try again.” And as the previous bullet point states, failure helps us learn. BUT, I do like to make a note that there it is necessary to maintain a balance between the encouragement of innovation and the critical analysis of what is and is not working. Stupid questions may not exist, but bad ideas do. And you need to have the tools and judgment to recognize when you’ve spent too much time or effort on something that isn’t worthwhile. A good decision can be as simple as: stop making the same bad one.
While organizations and environments continue to become more complex and change at rapid speeds, it’s important to adjust your business plan to accommodate these transitions accordingly. Focusing more on Operations can improve the way your business functions, and allowing the decision making process to start at an operational level is an integral part of adapting a more efficient strategy. When decisions are inclusive, they’re more informed. And I think we can all agree that the more informed we are, the better equipped we are to make better decisions.
Dr. Bert Shlensky, president of Startup Connection (www.startupconection.net ) is a graduate of Sloan School of Management at M.I.T. He served as the president of WestPoint Pepperell’s apparel fabrics business as well as the President & CEO of Sure Fit Products. Having provided counseling to over 2,000 clients, his focus is on working with select startups and small businesses.
“He didn’t even say thank you…” The indignation that we feel when people don’t mind their Ps and Qs is very telling of how our words and actions (or lack thereof) affect those around us. In a work setting, this often manifests as appreciation or respect. When someone simply acknowledges or thanks you for your work, it goes a long way. Employees who feel appreciated tend to perform better and have a stronger sense of fulfillment in their jobs overall. It only makes sense, then, that support and positive feedback are essential in order for a business to grow, increase productivity, and experience positive change.
While providing a coworker with a quick “Great work” is always a morale boost, a shift in mindset and a restructuring of business practices may be necessary before you can truly enact significant change. Establishing a support culture can increase productivity and create an environment where conflict is replaced with respect.
Here are a few key elements to creating Support Culture:
Acknowledge and address
disequilibrium.
The most apparent solution is to simply be aware of any dilemma
that arises and consider the implications. Change generally does not occur
unless there is a need, a conflict, or some sort of imbalance. When one of
these exists, we frequently attempt to squash it quickly to avoid change.
However, when conflict is approached with an open mind, the commitment to entertaining
varying opinions with respect, and a willingness to discuss, we open the door
to possibilities and solutions that we may have otherwise overlooked. In
collaborative settings, this encourages communication and compromise as
participants feel supported knowing that everyone’s best interest is being
considered.
Understand the culture and participants.
What
motivates one person will not inspire everyone. We’re all influenced by innumerable
factors including upbringing, past experiences, and innate qualities. For
example, some people are more left-brain, technical thinkers while others are
right-brain, creative types. These people will have different approaches to
doing the same task and that’s okay. Respect that everyone learns differently
and thrives in varying environments. Honor each individual’s strengths and your
team will be stronger for it.
Organizations
need that variety, as productivity is a result of support and encouragement
combined with the appropriate tools and direction. A great example is how sports
coaches often use a mixture of motivational techniques accompanied by hard work
to get players to reach their full potential.
This
approach only works, however, if you know your audience. Once, during a
planning meeting, in which several finance employees were arguing about how to
improve EBITA, the creative head (who was incredibly talented and somewhat
eccentric) asked, “What’s an EBITA? It sounds like an animal.” The takeaway
here is that we must consider our listeners and respect their background and
point of view. When we try to solve problems without taking everyone’s
perspective into account, we risk misunderstandings. We often get so caught up
thinking our own ideas and opinions are the best that we ignore how the
perceptions of others’ will alter our effectiveness. When you know where
someone is coming from, you better understand how to most appropriately and
effectively support them.
Avoid confirmation bias.
Age, status, education, and reputation of the listener and
communicator can all dramatically affect our perceptions. When we make
assumptions about someone based on these sorts of qualifiers, we either
consciously or subconsciously become biased. And it’s nearly impossible to
genuinely support
someone you’re bias toward.
Whether it’s a positive or negative inference, we jump to
conclusions without all of the facts. If you rely on a GPS system that suggests the fastest route, but does
not include traffic, accidents, or construction related detours in its
directions, your bias is misinformed. Frequently, we underestimate the
importance of analytical information or fail to consider things like experience
when communicating alternatives among different groups. It’s important to know
what your biases are and accept that, while we all have them, it is also our
responsibility to challenge the way we’ve been conditioned to think.
Focus on a “WIN-WIN” approach when communicating.
We all know
positive feedback is received more favorably and, yet, how often do we revert
to criticism, blame, or a “one-upping” mindset when we find ourselves in
pressure situations. Support and encouragement are essential to innovation. It’s
important to create and maintain a positive atmosphere where people feel safe
sharing ideas.
Avoid
negative talk and never enter a discussion with the goal of “winning.” It’s not
about winning or losing; the purpose of communication is to share ideas and come
to an agreement on the best solution—whether that’s through compromise or one
party acknowledging that, this time around, perhaps their way isn’t the best
approach.
I like to
refer to Sheryl Sandberg’s advice about establishing an encouraging environment
where people feel confident enough to consider the question, “What would
you do if you weren’t afraid?” When we feel supported, we’re able to let go of
inhibitions. That’s when we’re free enough to experiment and throw out “crazy”
ideas without the fear of failing or being ridiculed. Because those “crazy”
ideas are usually where innovation is born. Similarly, we should look at
mistakes, and even failure, as learning experiences rather than defeats.
Frequently, those frustrations also lead to inspiration.
Be inclusive.
Inclusion
always yields a sense of camaraderie and support. When it comes to
administration, I highly recommend Tom Peters’ “Management by Walking Around.” It
advocates for a more relaxed atmosphere where there is less of a separation
between “bosses” and “subordinates.” It suggests that employees are more
productive in environments that encourage cooperation over intimidation.
Examples of this include informal meetings, going to a coworker’s office
instead of demanding they come to yours, open office space with collaborative
workspaces, and more face-to-face time.
Communicate openly.
Organizations
and individuals who communicate openly are more successful. Keeping everyone
informed inspires a sense of belonging and results in increased productivity.
The old mentality of maintaining exclusivity amongst execs is inefficient and only
fuels a sense of separation. The more people know, the more effective they can
be.
Respectfully manage individuality.
There are always going to be eccentrics who need to be managed differently. Similarly there will be people who need more direction. Learn to appreciate and utilize everyone’s varying skillsets. This may mean giving more freedom to creatives who produce their best work at odd hours or being stricter with employees who thrive under pressure and deadlines. You will also need to address issues of under performance. However, the main point to remember here is to approach all situations with a sense of empathy and respect. When you approach people with a desire and intent to help, they’re much more inclined to be receptive to feedback and help your business increase productivity.
Mind Your Ps and Qs.
This is the most obvious and yet, too frequently, forgotten. The
easiest way to show support and appreciation is through simple words of
acknowledgement like “please,” “thank you,” and “nice job.” Remembering and
using people’s names or referencing a detail you discussed in a previous
conversation goes a long way. Letting people know they are seen and being heard
is one of the highest forms of respect. We all know how good it feels to be on
the receiving end of that.
Establishing a strong sense of respect between customers, suppliers, and coworkers is a critical
component of success. And while it takes constant effort, it is relatively
inexpensive. A great starting point is to simply check in with yourself and ask
if you’re making a consistent effort to see things from others’ point of view
and understand where they are coming from. How much more efficient and
compassionate would we be if we applied this mentality to all aspects of our
lives?
Dr. Bert Shlensky, President of The Startup Connection, offers guidance to help small business achieve maximum sales and profit. He utilizes his 40 years of high-quality experience to launch your business to the next level via technological, social, and online integration. Call or email to setup a free consultation:
“I’m not playing anymore!” A phrase most often yelled by a child (or an adult) who isn’t winning. We all know these people: they aren’t happy unless they’re in first place, they own ALL the Monopoly properties, and the other team is crying. We’re taught not to be sore losers, but we often forget to acknowledge the negative effects of being a poor winner—especially when it comes to the cut-throat world of economics where everyone is striving to create the best decisions at any cost. Learn why beating your competition isn’t everything.
However, we need to stop focusing on crushing the
competition and concentrate, instead, on creating more win-win scenarios. When
developing the best business strategies for your company, you might think it’s
imperative to get rid of any and all opposition, but competition makes us
better. When an athlete has a strong opponent to go up against, you better
believe they’re going to train harder and longer and, ultimately, get stronger.
With the right mindset, we can learn things from competitors and they will push
us to excel.
How can you
adopt a “Win-Win” mindset in order to generate better results overall?
Understand
That Sharing Does Not Equal Losing.
The tendency is to think that it’s always a zero-sum
game, meaning that there can be only one winner and everyone else must,
therefore, be a loser. But, this outlook makes it impossible to create
sustainable business models. Rather than looking to create win-lose situations,
it’s much more beneficial to find ways to “grow the pie,” as they say.
Costco is a great example of this: They provide a
package deal, which doesn’t add to their bottom line, but still provides the
consumer with benefits that enhance their shopping experience. Other examples
include dinner or airline packages, which include add-ons that make customers
feel like they’re getting more for their dollar, but simultaneously don’t
actually raise the business’ production cost. They key here, however, is to
make sure that your free offerings are desirable. The goal is to increase value
for everyone.
Rethink
“Compromise.”
Too many people, falsely, assume that a compromise
means they’ve lost or that they’re being forced to forfeit something. In
actuality, compromising usually makes you stronger. By listening to the needs
and understanding the goals of your partners (both personal and business), you
build and strengthen the relationship.
When you are willing to consider another party’s
interests, they will, in turn, be more open to catering to your own. In
particular, you might discuss things like price, service, quality, and
reliability. Different transactions hold varying expectations (i.e. to someone
stuck in the rain, availability is more important than price or even the quality
of an umbrella while quality is a crucial factor to someone purchasing a car). Finding where to give and take will help
create an improved outcome for all. In the end, communication is essential to
producing win-win outcomes.
Recognize That
Success Does Not Equal the Failure of Others.
How many profitable barbershops, Italian restaurants,
and grocery stores exist in your neighborhood? Enough said.
Be Open to a
New End Goal.
We often go into situations with a precise vision and
set expectations, but this limits potential. If we’re able to keep an open mind
and test different ideas (i.e. pricing, delivery time, production style, etc.),
we might discover a scenario which strays from our original idea, but
ultimately achieves better results for all parties involved. This requires open
communication between suppliers, colleagues, customers, and even competition.
It also means being open to feedback. Look, listen,
and analyze. Face it: you don’t always know what’s best and the insights of
others may be the missing link to improved productivity and the key to creating
the best business model for your company.
Accept That
Failure Is Part Of Success.
It’s
often said that if you aren’t making mistakes, you aren’t trying hard enough. It’s
safe to say that the experiences of these innovators illustrate this point:
Thomas Edison, one of the greatest inventors of all time, had 10,000 failed trials with his light bulb.
Stephen Spielberg, famed movie director, went solo after being rejected three times from the University of California.
Bill Gates and Mark Zuckerberg, both college-dropouts, went on to… well, you already know.
So: Try. Fail. Learn. Improve. Losing is where we
grow. Too often, winning provides a sense of false security. Accept that
there’s always going to be someone striving to do what you do better than you
do it. And then keep pushing yourself to be your own very best.
Once we accept that success isn’t built on the failure
of others, we open ourselves to a multitude of opportunities. Consider
different perspectives, encourage innovation, and accept the inevitability of
mistakes. You might be surprised at how beneficial it is (and how good it
feels) to win and watch others win simultaneously.
When you want to stand out, reach out to Bert for the tools that will build your “sticky” brand. My focus is on understanding and analyzing your dilemmas and challenges, so your company becomes profitable faster.
Call (914) 632-6977 or email me at bshlensky@startupconnection.net. Don’t leave without signing up for our useful free eBook!
Feeling stumped or overwhelmed? Contact Bert at (914) 632-6977 or Email to start the process. Thanks!
