When it comes to collaboration, words like support, positive feedback, communication, listening, and mentoring permeate the conversation. However, competition and conflict can also benefit collaboration. Being agreeable and complimentary are all well and good, but we also need counter arguments, constructive criticism, and ideas that challenge our way of thinking to ensure we aren’t getting stuck or creating a bubble of confirmation bias.
Conflict should be viewed as an opportunity and not a constraint in the collaboration process. The simplest strategy is to pursue win-win solutions wherever possible. Expanding information and understanding, reducing risk, and varying value for individuals are all tools to increase the win-win process. For example, many of the work at home discussions are based on historical perceptions rather than an analysis of a job’s structure and requirements. Coming up with solutions that benefit both parties is a great way to turn conflict into something positive.
When it comes to risk, it is well known that we underestimate the upside and overestimate the downside of decisions. Consider the fact that losses are limited to your investment while gains have almost no limits. Do we understand our risk in a situation? When can we and when should we pursue “out of the box” solutions rather than the most probable outcome?
Value can also increase by providing different costs and benefits. Most retail transactions offer mutual gains by providing benefits for the buyer and seller. Issues like service and quality can also increase the long-term value and satisfaction of the customer.
Further, it’s important to remember that conflict and competition are task oriented and not personal matters. For example, it is fine to reward all the participants in little league games. However, we should also give special recognition or rewards to participants who show excellence. The purpose is not to make anyone feel bad, but to acknowledge hard work and encourage improvement. We have all had coaches, mentors, and teachers who pushed us to do our best. That can be done in a positive way, but sugar coating doesn’t often help us improve. It may even hinder our progress. Constructive criticism is essential to learning and developing. And we need to know how to give and receive it effectively.
Conflict is often a result of miscommunication or an unwillingness to hear another side. Thus, listening is a great collaboration tool that can lead to mutual benefits that increase the value of a transaction. Many organizations are debating the effectiveness of working from home versus in office after the pandemic. Convenience, commuting time, cost, and freedom all favor working from home. Communication, interaction, and fewer distractions seem to favor working in the office. Much of the discussion seems to argue one side or the other rather than having an open discussion in an attempt to hear the other side, understand the parameters, and develop maximum solutions. And this often involves some sort of compromise.
Compromise is a common tool to reduce conflict and increase collaboration. However, you must understand the parameters, process and outcomes. For example, compromise can be a great tool in allocating scarce resources in a fair way like compromising on budget allocations to meet different needs. The effectiveness of compromises is also highly dependent on the situation. Issues like safety, security, and legality have little room for compromise. In contrast, uncertain decisions, like product development, almost always require the flexibility of compromise. For example, forecasting has lots of factors, is subject to change, and is seldom 100% accurate. You need the flexibility to compromise on the process, analytics, and risk of forecasts. In particular, using data from 2019, 2020, and 2021 can be highly uncertain because of the pandemic.
Collaboration also enables us to examine alternatives and potential challenges. We must ensure that diverse components and perspectives are included. This might mean welcoming criticism and ideas that challenge our own, but through this “conflict,” we may find greater success. A common challenge that arises here is integrating creative and analytic approaches. It may seem like these two are in conflict with one another, but finding a balance between them will help you develop stronger strategies and/or solutions. This might include discussions of integrating risk and intuition when assessing the probability of success.
Collaboration can be affected by organizational tradition and structure as well. Many large companies have tunnel vision, organizational constraints, and ignore emerging technologies and possibilities. They lack the flexibility to respond to the needs of the market and rely on the use of outdated solutions to deal with new opportunities. They fail to allow the vision, entrepreneurship, and risk necessary to succeed.
So, how do you collaborate in a zero-sum game? Collaboration assumes some mutual goals, which may or may not exist. Winning or losing a game, election, or bet are clearly win-lose situations. But a situation can change if the parameters change. I played high school football for a small private school. We practiced against one of the better large public-school teams. Our team got destroyed every time, but we got more out of the game because we were challenged and, thus, better prepared for the regular teams we played during the season. Sometimes the “win” for the loser is what you take away from the experience—that can be a lesson, practice, or the chance to test out a new strategy.
Expertise can also be a difficult issue to incorporate into a collaborative environment. We frequently rely (without question) on services and recommendations from people in healthcare or IT. How many times do we even question a doctor about alternative remedies? When possible, doing your own research is useful, but you also need to recognize when to accept an expert’s advice.
Conflict and competition exist everywhere. Whether it’s a rival sports team, a company that provides the same service as you, or a miscommunication with a friend, it’s something we will always have to deal with. So, next time you find yourself in conflict with someone or something, look at it from a different perspective. Can a competitor push you to be better? Can this argument with a family member encourage a conversation that helps you better understand each other’s needs and bring you closer? Can this conflict with a coworker inspire a collaboration that produces something even greater than your original ideas? Instead of feeling that conflict is a hindrance, try to think of it as an opportunity to see things differently and gain more input for decision-making. When handled effectively, conflict can increase collaboration and improve solutions.
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 strategy 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
If we didn’t realize it before, the pandemic certainly proved how important human connections truly are. As social creatures, we thrive on interaction with our peers. So, it is no surprise that many of us struggled personally and professionally while unable to connect with family, friends, colleagues, and coworkers for an extended period of time. However, with vaccinations helping to increase our ability to see each other once again, one of the biggest opportunities we are presented with is the potential to reconnect and start new connections.
We need to consider just how much the last couple of years distanced us from others, aim to accept and adapt to the things that have changed, and actively work to rekindle existing relationships while continuing to build new ones. For example, offices are reopening and we need to understand the pace and extent of the reopening. Water cooler jokes may be obsolete, but connecting via Zoom will probably be here for the long-term.
So, what can you do in this new norm to adjust in order to foster worthwhile and effective connections? This should not be a sophisticated analytical exercise. Instead, I suggest simpler and, sometimes, known recommendations that can be quickly adapted:
Small moments make a difference. Saying please and thank you go a long way. Asking, “how are you?” (and truly listening to the response) can really benefit a conversation.
Be brief. Keep things simple whenever possible. And, when creating a presentation, try cutting it in half… then cut it in half again! It’s better to keep people wanting more.
Make a meaningful impression. Did you know that 90% of most impressions are made in the first 30 seconds of contact, and they are not based on the substance of the communication? Make those 30 seconds count.
Utilize facial expressions and body language. Your eyes, mouth, brows, and other facial features can reveal more than what you say. These clues give professionals better effectiveness in meetings. Especially with the rise of virtual interactions, it’s helpful to be more expressive in order to convey your meaning and/or attitude.
Interpersonal trust. Invest in building personal trust and developing richer sensory experiences that help cultivate connections. For example, our sense of touch (like when we shake hands) conveys emotions that can greatly enhance our communications.
Develop and use new communication tools and don’t depend on PowerPoint. It is among the most overused current communication tool and it ignores the needs of the audience. There is nothing worse than having the lights go out and sitting through a 30-60 minute canned, slick, PowerPoint sales presentation. Instead, aim to create a presentation that engages and interacts with your audience.
Understand and respect colleagues, clients, and competition. Asking questions is one of the best ways to gain a better understanding of someone else’s experience. Additionally, when reviewing your service offering or considering new ideas, try asking yourself what customers are currently using and how your product or service is better? In other words, why should customers choose you? Genuinely knowing your customers will help you answer these questions.
Recognize the benefits and strengths we learned from video and virtual communication. Workers are becoming increasingly comfortable using video and audio-conferencing technology. Companies are acknowledging and accepting the benefits of online meetings, such as greater reach and efficiency. Use these to your advantage.
Focus on engagement. Distractions continue to be a challenge, but they aren’t a result of technological limitations. The solution is actually in the way we run meetings. With enhanced visibility, live chat, polls, surveys, and even sub-conferencing features, guests can easily ask questions, gain clarity, brainstorm, and collaborate together. It’s just a matter of finding what works best for your meetings.
A great presentation relies on several different aspects. It’s not just about the words you say or the images you show. The entire experience plays a part in how much the audience retains or feels inspired. People can become preoccupied with the environment of the meeting. Communication, lighting, room temperature, and other factors can ruin a connection. The easiest recommendation to improve audience connection is with food. We all know what it’s like to get hungry, bored, and distracted, especially in long sessions. Taking breaks and offering snacks can reduce boredom and fatigue.
Interpersonal connections are the glue holding together our social circles, our business networks, and our company cultures. When we put in the work to maintain existing relationships and strive to establish new connections in a healthy, respectful, and effective manner, our lives and businesses are better off for it. While some people may have grown distant over the last couple ears, there are always ways to reach out and revive these connections. Great opportunities often arise from those we know. And when we are all looking out for one another, rooting for each other, and helping one another succeed, that’s when we know we’ve truly cultivated valuable and genuine connections.
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 strategy 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
When I started this article a few weeks ago, I thought things were getting less stressful with COVID starting to reduce and the economy booming. Since then, the Ukraine situation has escalated, inflation has increased, and stress seems to be rising again. All of this is a reminder that continual change seems more permanent, and we don’t necessarily know what it is or what it will be. Our strategy should focus on being flexible and preparing for whatever might happen.
For example, my and others stock portfolios dramatically increased between 2019 and 2021 by investing in high profile tech stocks like Amazon. In 2022, those and many other tech stocks are dramatically down. Thus, I am learning to diversify.
Similarly, things like COVID, mask mandates, going to back to work, entertainment, and restaurant businesses are experiencing continued uncertainty rather than a straight return to normality. In contrast, kids seem to be going back to school normally.
The most significant aspect of all of this continual change is increased stress and depression. While many of us experience the roller coaster effects of uncertainty every day, an increase in mental illness, drinking, suicides, and crime point to more long-term and serious implications.
So, what do we do? I recommend understanding some certainties, watching change, and developing more flexible strategies.
Some certainties:
There are new structural trends that are becoming embedded in our culture. While myself and others often discuss them, they need to be given more consideration in our strategies and programs. These include:
Income inequality continues to increase.
Technology continues to boom.
Bureaucracies continue to be less effective.
Some changes to watch:
The economy keeps growing.
Labor will continue to be tight.
These changes are producing inflation, which has not been significant for over a decade.
Ways to implement flexibility:
Review and measure your programs on a more regular basis. In particular, evaluate the potential of alternative strategies, such as Internet versus retail.
Allocate some of your time and financial resources to developing and evaluating new programs.
Understand and implement programs to better manage changes like work from home, revived entertainment and networking, school, and diversity.
While change and its uncertainty are increasing, we need to give even more attention to proven best practices. These include:
Utilize technology. It’s not going away. And, it can streamline many of your processes.
Diversify everything: portfolios, employees, your skill-set, etc. We can’t continue living in our own little bubbles. Diversifying also exposes you to more opportunities for return.
Be prepared to adapt quickly. Change is a constant and it’s happening rapidly these days. Don’t get left behind because you’re unprepared, or even worse, unwilling to change.
Prioritize the 80-20 rule. It has been proven time and again that 80% of business revenues are generated by just 20% of our customers. Yet, we all continue to waste time, money, and inventory dollars on customers that bring in a lower return. This tendency frequently adds unnecessary confusion and complexity.
Focus on service, image, andculture. These are frequently the biggest (and often least expensive) ways for small companies to develop a brand and differentiate themselves. Something to consider: In the current social climate, people are more inclined to connect with a brand or buy from a company that is aligned with a good cause and/or participates in charitable giving.
Consider structural changes. Open systems in particular have a number of benefits including more effective problem solving, leadership, communication, and planning. It might be time to reevaluate how your company functions on a structural level and whether or not it’s producing the results you want.
It always seems that as soon as we think things are “settling down” and we’re falling into a groove, that’s when we’re thrown a curve ball. This is because we’re utilizing a mindset that craves the comfort of consistency and reliability. We need to shift our mindset to one that expects change because, while none of us can predict the future, we can, with certainty, rely on change. This might make you feel uneasy, but know that we are all in the same boat. Try to remember that staying flexible will make adapting easier. And, implementing sound, proven strategies will not only set you up for success, but put you in a position to effectively and efficiently change with change.
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 strategy 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
We are recovering rapidly from the COVID disruptions. The economy is growing at a rate of 5-7% compared to the typical 2-3%. COVID cases and deaths are down 50-70% as we emerge from quarantine and begin to experience some ordinary social behavior. Things are certainly looking up, but during this COVID Recovery period, it’s critical that we continue taking advantage of opportunities to restore normalcy so that we can encourage personal prosperity and growth.
We are achieving major gains in areas like vaccinations, growing the economy, getting students back to school, and relaxing some guidelines. We’re also seeing an emphasis on social awareness as people continue working to end racial discrimination and minimize destruction in the Middle East. We’re feeling energized to make positive changes despite the fact that progress in areas like racism, gun control, infrastructure, and bipartisan efforts have been disappointing.
The most significant impact of the Pandemic is, perhaps, the acceleration of income inequality (which was already concerning prior to 2020). While most income tax rates have remained pretty consistent for decades, taxes for the top 1% have decreased from over 70% to under 30%. Thus, the country’s top earners have increased their wealth share from 60% to 80%. Inequality also extends to other areas like the K economy where the rich get richer and the poor get poorer. Companies like Alphabet, Amazon, Apple, Facebook, and other tech conglomerates are becoming more and more powerful in both social and economic programs.
There is a great deal of uncertainty regarding the work from home trend, but it will continue at a level of 20-30%, at least. The benefits (no commute time, reduced cost of office space) and improved technologies (Zoom) are too great to be ignored. However, we have not even seen the communication and interaction benefits that can be accomplished as more normal behavior resumes. Therefore, we need to manage, adapt, and develop effective solutions rather than try to execute personal or traditional preferences.
Furthermore, we need more innovation as part of the COVID Recovery. I believe efforts like Artificial Intelligence, electric cars, improved technology in education and business, better health care, solutions to prevent climate change, etc. can contribute to the acceleration of our economy. For example, Biden visited a Ford plant recently to introduce a new truck. It generated more excitement, interest, and publicity than many other efforts. Consider how gains in areas like this are a win-win with few losers or dissent.
Another trend we’re seeing is increased stress levels as a result of more shootings, crime, discrimination, and suicides. Even the Supreme Court is experiencing more stress related contentiousness. To make matters worse, for the last year, physical acts that once provided comfort and encouragement (hugs, high-fives, handshakes) were discouraged. As social creatures that crave human connection, it takes a toll on us mentally when we’re unable to find solace in a hug or vent at the water cooler with friends. On the plus side, however, we’re seeing these gestures being reincorporated into our routines as part of the COVID Recovery.
A positive trend that started during the pandemic (and seems to be sticking around) is an increased focus on mental health. Many people started talking with a therapist as quarantine took its toll. And many health insurance companies encouraged this by offering free counseling services. Hopefully, we continue to proactively manage stress and take time to practice mindfulness because pretending problems don’t exist, overextending ourselves, and being too stubborn to ask for help are all surefire ways to make stress worse. You may be able to keep it bottled up for some time, but it will eventually find a way to rear its head.
The pandemic affected women in a variety of ways. Poor women, in particular, were more likely to experience adverse effects—they suffered more unemployment and were left with more responsibilities (like childcare and homeschooling) than men. These issues also caused an increase in stress, depression, and self-image. COVID Recovery plans need to include more programs and support for women. We must work to empower women, eliminate workplace harassment, improve their healthcare options and the control they have over their own bodies, demand equal pay, and provide equal opportunities.
Another noteworthy area is the Real Estate market, which will remain uncertain for a significant period. This will create some issues, but also provide many opportunities. Restaurant and store closures are causing a massive structural change in retail space. For example, it is estimated that 100,000 to 200,000 (mostly small) restaurants have closed. This will favor larger restaurants by providing greater opportunities for big and more successful restaurants. Residential movement from the city to suburbs is also becoming significant. The return to offices will be slow and probably less than 70-90%. All of these trends are creating huge opportunities for office space design, communication, and recreation.
Travel and entertainment are recovering, but very slowly. While personal travel may resume quickly, business travel and meetings will probably be reduced permanently. Opportunities in these industries will need to support these trends and focus on ways to embrace the slow transition.
Most importantly, no matter where you are in the midst of the COVID Recovery, don’t forget to take care of yourself. Eat healthy meals, exercise, get some fresh air, meditate, try to keep a regular sleep schedule, and be patient (with yourself and others). We’re all going through a lot—cut yourself some slack.
Finally, whenever you identify an opportunity and decide to capitalize on it, make sure to develop and execute solutions. Take comfort in the fact that risk can be reduced greatly with a better understanding of COVID Recovery trends. The Pandemic may have hit us hard, but it won’t keep us down. Keep your head up and stay focused on the possibilities.
Dr. Bert Shlensky, President of StartupConnection.net, has an MBA and PhD from the 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. More than 2,000 clients have benefitted from his business acumen over the course of his long career. He now focuses on working with select startups and small businesses. For more information, please visit our website: https://www.startupconnection.net/
The word “uncertain” doesn’t usually give us much hope. It implies instability, insecurity, and vulnerability—all things most of us try to avoid. But, perhaps, we can find a way to embrace uncertainty and find a way to make it work in our favor.
As we forge ahead into 2021, there will certainly be a significant amount uncertainty. Generally, we try to predict future trends based on recent past events. However, 2020 had such immense disruption that it is almost useless to use it as a base. Many argue that this uncertainty causes pessimism and lowers expectations. However, I argue we need to embrace uncertainty, as it creates opportunities and should incite positive expectations.
Why? Well, let’s take a look at the following paragraph describing American economic trends: “Despite this prosperity, major shifts were occurring in American business and the workforce. Preexisting corporations were merging and becoming larger, more powerful conglomerates. Consumers increasingly were doing their shopping at discount chain stores and their dining at inexpensive fast-food restaurants, leading to a decrease in the number of single-proprietor businesses. Meanwhile, manufacturers were relocating from the Northeast and Midwest to nonunion Southern states, taking jobs with them and robbing industrial cities of their vitality. Manufacturers also were opening factories in foreign countries to take further advantage of cheap labor. These shifts led to a decline in the power of unions.” (The 1960s Business and the Economy: Overview | Encyclopedia.com)
While this could describe much of today’s economy, it’s actually a description of the 1960s. It shows progress after disruption and it’s arguable that the 1960s had even more disruption than we have currently (consider the assassinations, civil rights, wars, and general social change). After major turmoil, we still achieved more growth, technological improvements, and social change than we’ve seen today. I believe that the stress we’re currently experiencing as a country could produce the same excitement that we saw in the 60s. On the other hand, it may be difficult to replicate Kennedy, the Beatles, a moon launch, the computer explosion, Martin Luther King Jr., and some of the other revolutionary changes that took place during that decade. But, history repeats itself…
And, historically, change usually occurs after disruption (and we have most definitely experienced a lot of that). In my own experience with corporate turnarounds, it’s much easier to motivate, innovate, and develop collaboration in troubled or changing organizations than within those whose culture is based on the closed-minded rule of “we’ve always done it this way.” It’s amazing how many individuals and organizations have incorporated new efforts like E-commerce, work-from-home, Zoom, etc. in order to adapt to the times and, as a result, have actually improved their results.
While we tend to focus on the negatives, there are many circumstances that should create a more positive environment if we learn to embrace uncertainty. The most significant may be the coronavirus. I suggest we focus our planning on the potential of the vaccine by spring or summer more than the tragic experiences of today. In other words, rather than just worrying about the possibility of shutting down in the near future, we should be adopting a mindset of: How do we keep a business viable today in order to thrive in the fall? How do we learn to embrace uncertainty?
I recommend focusing on these three areas that create significant opportunities for positive thinking: technology, expectations, and analytics.
While we seem to constantly advocate for technology, I think we underestimate it. For example, financial advisors continue to advocate balanced portfolios with traditional companies and bonds, but here’s the reality:
In 2016, if you had invested $10,000 in each of P&G, G.E., G.M, and Exxon (all among the leading companies of the day), it would be worth $35,000 or a loss of about $5000. If you had invested the same amount in Amazon, Google, Facebook and Microsoft, it would be worth $169,000 or a gain of about $139,000. If you had invested the $40,000 in 3% bonds, it would be worth about $46,000 or a gain of about $6,000. Yet, advisors tout Exxon as a great opportunity for 2021 despite the growth in electric cars, energy saving efforts, and reduced energy consumption.
Pay attention to areas like E-commerce, A.I., infrastructure, medical research, etc. These will produce dramatic opportunities for growth and investment.
Positive Expectations are a critical cause of growth and success. Venture capital, increased risk, and positive thinking can produce dramatic results. Low interest rates and inflation have had a huge impact on reducing actual risk. My favorite musical has always been My Fair Lady because of the Pygmalion effect, which infers that having positive expectations leads to enhanced performance, which results in a higher probability of success. The implication is that confidence and energy will increase if we believe in ourselves. On the other hand, a negative self-perception results in a significantly lower chance of succeeding. What we think we’re capable of, therefore, basically becomes a self-fulfilling prophecy.
Technology and expectations can be enhanced with improved measurement and analysis. Some simple ways to implement analytics: review goals, probability, risk, and measurement. Basically, ask yourself how you’re doing and where you can improve.
More advanced analysis, testing, and measurement may include creating more dynamic and interactive efforts, which can boost the development of strategies. Allowing for failure and considering alternatives can also be useful. Incorporating operations, customer service, branding, and pricing in decision making can create new, successful approaches. Accept this fact now: Mistakes will occur. So what? Learn from them and move on. Mistakes are only bad if you keep making the same ones.
So, you see, positive expectations can have a dramatic impact on success. Yes, there is uncertainty ahead, but when has there ever been zero uncertainty? A feeling of security at any given moment doesn’t actually equate to certainty. We can’t predict the future and we don’t know what tomorrow holds. There will always be uncertainty, so embrace uncertainty and trust that the “unknown” is where possibility lives. Facing unexpected change is the fastest way to determine if you’re a pessimist or an optimist. What will you be? A defeatist or an opportunist? Why not try expecting greatness? Expect it from yourself, from others, and from the universe. Because when you expect it, it’s easier to find.
Please visit our website www.startupconection.net to book a Free Session in which we can help you develop an action plan that will evaluate potential and risk. We always discuss process, expected outcomes, and cost before you make any commitment.
Dr. Bert Shlensky, president of Startup Connection, prides himself on his ability to define what is unique about each and every business. He works closely with individuals to develop a personalized approach that targets specific areas of concern and offers solutions based on his 40+ years of experience. His expert team will address your particular needs while working to save you time and money.
“The 1960s Business And The Economy: Overview.” Encyclopedia.com, www.encyclopedia.com/social-sciences/culture-magazines/1960s-business-and-economy-overview.
Innovation. What does it mean to you? Is it something you embrace? Or is it an idea you find daunting and shy away from? If you find yourself in the latter category, it’s time to reassess your relationship with innovation because it’s imperative if you want your business to stay relevant in an ever-changing world.
As we continue to navigate through a global pandemic, specific recommendations on how organizations and individuals can be more innovative have surfaced from various sources. I argue, however, that we need a more flexible approach to innovation.
Now, in order to enhance innovation, we must first understand it and consider what our goals are in trying to do it. For example: There is a big difference between writing a new song and developing a vaccine for the Coronavirus.
Some questions to consider:
Are you tweaking a problem, examining alternatives, or creating an entirely new solution?
Does the problem involve diverse expertise, extensive analysis, and extensive outside resources?
What resources, constraints, risk, and requirements will affect innovation?
Let’s expand on a few of these issues:
Are you solving problems or developing new concepts?
Much of corporate innovation revolves around finding better or new solutions to existing problems. For instance, for many years, car companies focused on developing better combustible engines, retailers focused on developing better shopping experiences, and IBM focused on building bigger and better computers. In contrast, other companies focused on developing entirely new solutions, which gave us the electric car, E-commerce, and the cloud.
Decisions regarding these issues involve a number of considerations. Do you give research groups complete freedom or do you require specific goals and financial objectives? How much risk and error do you encourage and allow? In general, venture capital firms allow more risk and pursue a home run while corporations tend to stick with more planned efforts.
While new markets and technologies are exciting, minor innovations can also be very productive. Logistics involving areas like inventory management, customer service, and sourcing can have dramatic impacts on cost, sales, and profits. In particular, Amazon has become extremely good at what they do: Prime, their own truck fleet, and automated safe warehouses have dramatically stimulated their performance.
Simple measurement and focus can dramatically improve results. Reviewing sales by product, P&L, and the 80-20 rule can inspire effective new practices. I have a client who switched 70% of her business from retail to E-commerce and has grown 40%. The process also requires new strategies on pricing, inventory management, and marketing. One huge advantage was that she was able to introduce new products on the Internet almost immediately rather than waiting 6-12 months for the retailers to make and execute decisions. In this instance, a problem was solved using existing concepts, but it was innovative for her specific company.
How are your decisions affected by analytics and intuition?
Decision-making used to be a simple choice between things like experience and intuition. However, Artificial Intelligence and other tools have added a new dimension to reduce the uncertainty of decisions. There are even major breakthroughs in medicine regarding the diagnoses and treatment of disease using improved statistics and analysis. The development of the Coronavirus vaccine has also been greatly accelerated by new technologies and processes.
Tools and presentations are also dramatically changing. For example, a colleague of mine objected to my website because it was too dependent on PowerPoint and Excel. While these are great tools and are the most used for analytical and presentation methodologies, they do have many limitations. The information can be old, longitudinal analytics is frequently lacking, they are not interactive, and they may not be visual enough. The lesson being: we must continue to challenge our ways of doing things…
Analytics as a new dimension requires consideration of new parameters. The most important is replacing hierarchal structures with collaboration, analysis, and facts. Many organizational structures are based on hierarchy and this simply needs to be replaced by a search for excellence and consideration of alternatives. Additionally, as we deal with more complex goals and analysis, we must remember that intuition is still important. In particular, the more creativity and uncertainty there is in a situation, the more intuition is required.
Some of this dilemma is created by the differences between “left-brain” and “right-brain” thinkers. Left-brained people are said to be more analytical, logical, detail and fact orientated, numerical, and more likely to think in words. Right-brained people are said to be more creative, free-thinking, intuitive, able to see the big picture, and can visualize more. So, whichever you are, perhaps try asking someone who thinks differently than you how they would handle something you’re working on—you might realize they have an entirely different approach that may or may not be better than your own.
The most important aspect of this discussion is to understand the use of analytics versus intuition in your decision-making process. We love to hang on to our hunches, beliefs, experience, and hierarchy. We even twist facts and ignore reality to provide continuing support for an argument. But, we need to invest time and money to analyze, filter, and review ideas. New analytical tools can enhance our flexibility, testing, ability to adapt, and the evaluation of alternatives.
Are you focusing on excellence and collaboration?
Innovation requires collaboration. It thrives with participation, diversity, new rules, and (to some extent) chaos. It also rejects bureaucracy, authority, hierarchy, and closed decision-making processes.
A major component of collaboration is excellence. Large organizations say they want excellence, entrepreneurship, innovation, risk takers, etc. However, they often fail to revise practices that encourage mediocrity (i.e. hierarchal structures and non-diverse cultures). Testing and failure (both critical parts of innovation) are punished more than rewarded. Even sound risk taking is reduced because of the fear of repercussions within the organization. In short, organizations frequently ignore the advice: “you can’t score if you don’t take a shot.”
It’s also important to note that exceptional people are often eccentric and can be challenging to manage. You may find that these employees like to work odd hours, need specific environmental stimuli for inspiration, and, generally, refuse to do things in a traditional way, which can often be disruptive to an organization’s flow. The upside, of course, is that they’re producing remarkable work.
Does your company culture encourage innovation?
While we tend to focus on innovative methods and technologies, we sometimes forget that culture can dramatically affect innovation. For example: California has about 15,000 patent applications a year compared to less than 200 in eleven other states. There are simply more resources and a more comfortable culture in California, which spurs innovation. Some organizations encourage testing, failure, and research while others believe in the “we have always done it this way” approach (which never stands up to the test of time). You need a forward-looking company environment for innovation. For example, market research should be a tool rather than an absolute. As Steve Jobs said:
Are we having fun yet?
In order to balance innovation, you must enjoy what you’re doing. You started your business because you had passion—Don’t lose that! If you’re truly happy doing what you’re doing, your customers will want to buy into that. They will feed off of your excitement!
You have to be willing to change with the times. And you have to give emerging business trends more than just a passing thought or you may miss out on big opportunities. Consider multiple and dynamic alternatives, goals, and methods. Innovation is the key to growth, profit, and sustainability. And the great thing is: there’s no one way to do it. Be innovative about innovation—the possiblities are endless!
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, he now focuses on working with select startups and small businesses.
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!
![[while reading "Economic News" at a news stand]
"I'm not as interested in the strength of the economy as in whether it's on my side."](https://i0.wp.com/startupconnection.net/wp-content/uploads/Im-not-as-interested-in-the-strength-of-the-economy.jpg?resize=725%2C236&ssl=1)
