We can get so obsessed with strategy, our great idea, and finance, etc. that we ignore parameters which can be critical to our success. One of the biggest mistakes I see startup owners make is failing to consider parameters as their North Star.
“If you don’t know where you are going, any road will get you there.” – Lewis Carroll, Cheshire Cat
Over and over, entrepreneurs come to me without a clue about what they’re aiming for. Short term vs long term, profits vs growth, risk and efficiency vs innovation all need to be considered in executing strategies.
One of the most important goals is the changing consideration of effectiveness. MacKenzie Scott and Melinda Gates illustrated this beautifully with their approach to charity and wealth.
They’re spending more instead of building big war chests.
They’re donating to small, more community-based charities rather than established institutions and providing seed money as well as operational funds.
They’re using more subjective funding criteria, requiring less proposal work and demanding less extensive reviews to encourage new organizations and facilitate innovation.
They are funding more women’s and poverty groups.
Their goal was to approach charity more effectively. Their rationale was that funding hunger, health, poverty and social justice with innovative contributions would provide more benefits than the opera or large universities. The result was a complete shift in charitable donations.
Measurement: Just Do It: Measurement is one of the most important parameters. At its simplest, it’s looking at where you vs. where you want to be.
Measurement for the sake of measurement. however, gets you nowhere. Ask yourself (and answer honestly!):
What am I measuring?
What metrics am I using?
What is the purpose of the measurement?
Here’s the thing every successful business owner knows but no one ever tells you: measurements of sales, profits, service, and customer satisfaction are vastly underrated.
Measurement also needs to consider qualitative metrics like speed, motivation, innovation, employee satisfaction, and quality. I recommend using qualitative questions like “How am I doing?” as well as more traditional qualitative measurement tools (remember: these tools run the risk of measuring the wrong information or letting bias inform results).
Embracing change, finding alternatives, being flexible, and innovation are the keys to success. AI, climate change, income inequality, and women’s rights are key factors affecting parameters and strategies. For example, we cannot ignore that baby boomers are aging and whites are less than 50% of new births.
As startup owners, this means the traditional revenue generation approaches may not be working as well as they used to. New markets and demographics need increased attention.
The advantages of AI – in terms of efficiency and speed – are yours for the taking if you take the time to familiarize yourself with the new technology.
Take the time to examine your processes for developing solutions and assessing progress. Many organizations continue to use authority, hierarchy, etc to govern decision making. However, the world – and business – has evolved to recognize commitment, success, teamwork, logistics, collaboration, and coordination as critical parameters in most successful organizations. Invest time in looking at how you come up with solutions, determine what progress has been made, and coordinate across teams.
Tips for Understanding Parameters
Consider Both Social and Analytics Issues: The realities and changes in parameters like population, the economy, political environment, and social values should be regularly assessed. Variables are changing faster and more frequently than ever. The more you understand these parameters, the easier it is to keep up as they change and evolve.
Commit to Action: Nike said it best, “Just Do It.” Refusing to make a decision is a decision in and of itself. Knowing what’s right and failing to act on that knowledge is one of the biggest mistakes startup owners make. Do your research, make your measurements, check in with your gut, then act.
Move Beyond Cause and Effect: Cause and effect is the go-to answer for “why” something happened. One of the oldest questions on cause and effect is the proverbial chicken and egg issue. However, most relationships involve a variety of factors. Dig deeper to identify all the factors involved in an outcome.
Embrace Risk and Trust Your Intuition: Analytics can produce quantifiable data that paints a black and white picture of your reality. Faced with the chance to take a big risk? Check in with your gut — and then trust that feeling. We all know the names of the billionaires who chased dreams others said were insane. The people who think outside the box are the ones who create real change in our society.
Avoid the Pitfalls of Bias: The biggest problem with parameters is the management of bias. Most bias, especially in small businesses, is simply human. Your assumptions, analysis, and data can all unknowingly affect assumptions — ignoring this fact is foolish.
Improve Your Prediction Capabilities: One of the crucial aspects of parameters is risk and outcomes, which are greatly affected by probability and information. Predicting results where significant and consistent historical data is available is fairly simple. Predicting results for new programs with little or inconsistent data requires developing educated estimates.
In summary, understand the importance of parameters in your decision processes. The assumptions, results, effort and process can be greatly aided.
Contact us for a FREE evaluation and get an alternative perspective on your business. We’d love to help you identify the ways to adapt to current trends. No one has time for BS – so we’ll cut straight to the chase and answer any questions you have.
Dr. Bert Shlensky, President of StartupConnection, has an MBA and Ph.D from the Sloan School of Management at M.I.T. He has helped more than 2,000 clients benefit from his business acumen. He now focuses on working with select startups and small businesses.
If I had to sum up potential in a single photo, it’d be this photo of my beautiful granddaughter at her college graduation. Watching her walk across the stage to accept her diploma, I was struck by the realization of all she (and her fellow graduates) have overcome: COVID, virtual learning, unprecedented uncertainty, etc. Suddenly, I realized the value of a positive perspective. What if we all made the conscious decision to focus on the upside, rather than worrying about what could go wrong?
Risk is unavoidable. But if you’re getting bogged down in the scary weeds of what could go wrong, you’re missing out on opportunities. Sure, you might fail, but failure is a part of success and should not be feared. Experience, testing alternatives, and finding effective solutions include failure as part of the process.
“Upside probability” is business speak for seeing opportunities instead of problems. Not convinced of the value of this? Just look at billionaires like Gates, Bezos, Musk, and Zuckerberg for evidence!
Seven Steps to Realized Potential
Build a Positive Culture: Creating a positive culture is as easy as saying “thank you” and praising employees for a job well done. Wondering if you’re building the right kind of culture? Ask yourself a simple question: would I talk to my family the way I talk to my employees?
Inspire Confidence Every Step of the Way: Creating an environment where people believe they can succeed is the key to effectiveness. The biggest opportunities for increasing confidence frequently lie in reducing the factors that inhibit it.
Embrace Technology and Change: While new technologies like A.I and electric cars may experience a few bumps in the road, their potential is both assured and unlimited. Successful innovators embrace new technology, quickly get themselves up to speed, and put these new tools to use for their business.
The WNBA is having to adapt to entirely new popularity, compensation equity, stars, quality of play and attendance all at the same time. This requires numerous adjustments such as how to treat emerging rookies, private instead of commercial travel, larger stadiums, and better communication to effectively manage the increased attention.
Stop Thinking of Planning as a Dirty Word: Whether we’re looking at business trends to guide decision making or checking the weather so we don’t get stuck in the rain, planning is often the difference between success and failure. AI makes it so planning has never been easier but it’s our job to plan effectively – and that requires prioritization. Prioritize the things you’re good at over the areas where you struggle. Identify and compare alternatives to identify new approaches and add insight to the existing ones. Review and modify plans on a regular basis.
Understand Parameters, Improve Strategies: Adaptability is key. The world changes fast, and so should your strategy. Regularly review parameters like population, economy, and social values. Staying updated on the latest variables is often the game changer. Make a decision and then embrace the Nike mentality and JUST DO IT! Not making a decision is a decision in itself.
Create a Culture of Opportunity: Encourage out-of-the-box thinking and ideas and avoid normal day-to-day problem solving. Invite people to test new ideas and scrap the ones that don’t work. Recognize that you will make mistakes and focus on solving them rather than blaming someone.
For example, the population is aging which is creating numerous opportunities and challenges. On the one hand, the population is growing at a slower rate and we will need immigration of workers to maintain economic growth. On the other, we will require numerous growths in certain services like health care, retirement homes, and leisure activities for retired workers.
Collaborate to Win: Collaboration is a proven winning strategy that needs more attention. Quite simply, it provides more alternatives, more analysis, greater satisfaction, and more innovation than working in an isolated silo. Despite these seemingly obvious advantages, collaboration is often overlooked. Too frequently, we pursue simplistic solutions without fully understanding the complexity of the problem.
In summary, let’s all commit to letting new grads relax and explore instead of tormenting them about responsibilities. Lastly, two great quotes to kick off your journey into embracing potential.
“Some people see things as they are and say why? I dream things that never were and say, why not?” – George Bernard Shaw
“What would you do if you weren’t afraid?” – Sheryl Sandberg, addressing the self-doubt that still holds many women back.
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 team of experts will address your particular needs while working to save you time and money. You can reach Dr. Shlensky at 914-632-6977
We surround ourselves with too much and superfluous information that complicates decision making and frequently makes it less effective. As a result, we are often incapable of determine what really matters and overwhelmed by the impossible task of focusing on it all. Stop trying to focus on everything! Instead, increase focus on the five areas that really matter.
The 80-20 Rule is a great tool to focus on the most productive activities
Before we review the 5 most important areas of focus, let’s review the 80/20 Rule. 80 % of your sales and profit will come from 20 % of your efforts.
Don’t believe me? Let’s look at what some of the most profitable companies and industries are doing:
Banks are focusing high wealth customers rather than spread their efforts among less productive clients.
Retailers are closing small stores and scaling back on inventory to allow them to focus their time and budget on their most profitable products and stores.
Companies are reducing unproductive practices to improve profits and reduce costs. Costo continues to thrive by offering fewer, more popular products.
As a startup entrepreneur, your primary goal is likely to develop as much positive cash flow as possible within a 12–18-month period. Laser-clear goals require laser focus.
5 Most Important Areas of Focus
Increase Focus on: Change
Change is the only constant in life. While it’s impossible to predict changes, there are ways to train yourself to become singularly focused on finding solutions and making improvements.
Rather than getting overwhelmed by the big picture, focus in on key areas that will jump start your programs. Simplify and reduce uncertainty and stress, understand what really affects your business, and allocate your concentration there.
Change your mindset. Rather than focusing on the hassle of making of changes; frame them as opportunities for increased sales, higher profits, and competitive positioning. This is the kind of flexible thinking that leads to success.
Increase Focus on: Open Systems
Despite the fluctuations, there are several tools for executing solutions and gains. Electric cars, women’s sports, and weight loss drugs are examples of emerging changes that will create massive opportunities
The first order of “open” business is facilitating open communication and collaboration. Empower your staff and management, and trust your employees. This may require reassessing your current workflow and hiring process to ensure you are hiring and training good people, giving them the authority they need to do their jobs well, and understanding that they will make mistakes at times.
Embracing the “status quo” of how things have always been done is the biggest mistake business owners make. Not convinced, take a look at how executing innovative solutions has been a game changer for major corporations.
What did all the success stories have in common? They all embraced the pillars of open systems:
Open Assets
Open Engagement
Open Services
Increase Focus on: Prioritizing
Our problem is not a lack of choices, it’s lack of information about each of those choices. Without all the information, prioritizing is impossible – for business owners and customers alike.
Cheese, beer, bread, and turkey breast are among the most over-assorted products in our lives. Yet, stores spend little time educating customers on varieties, taste, and price of different products. Prioritizing consumer education improves consumer satisfaction, which – in turn – improves consumer retention (and revenue).
Consumer-Facing Prioritization: Prioritize providing what consumers actually want and how they want to get it. Amazon had about 22-24% of all web traffic this holiday season and, yet, we’re still talking about less successful alternatives like retail and Internet outlets rather than educating businesses on how to capitalize on Amazon’s success.
Internal Prioritization: Prioritize what you’re good at and pay less attention to your weaknesses. Much of analytics in sports is based on getting players to focus on the efforts with the greatest probability of success.
Increase Focus on: Managing Risk
We are frequently afraid of risk when dealing with the rapid changes in our society and environment. Relying on old methods and a “we’ve always done it that way” mentality can actually be riskier than adapting and making change.
One of the biggest opportunities in evaluating risk is dealing with innovation and the exceptional. Better data also needs to be accompanied with some risk in searching for the exceptional.
“Risky” Ways to Improve Company Results
Create an open culture within your organization
Encourage testing of ideas
Embrace and cultivate diversity
Permit (within reason) “deviant” behavior
Test innovative recruitment strategies
Increase Focus on: Process
Many planning programs put financial objectives at the end of the process. Developing financial parameters at the beginning and then revising as programs develop has many benefits. It particular, it can help you avoid pursuing poor paths and highlight opportunities.
Key Takeaways
Focusing encourages you to prioritize key issues and reduce attention to insignificant ones. We’ve identified key issues and provided suggestions to help prioritize and consider the most significant opportunities. Encourage out-of-the-box thinking and ideas and avoid normal day-to-day problem solving. Encourage testing new ideas and scrapping ones that don’t work. Also, recognize that you will make mistakes and focus on solving them rather than blaming someone.
And, As Always:
Don’t neglect key elements of success: We sometimes forget that the chain is only as strong as the weakest link. Operations, customer service, and logistics are just as important as traditional functions. They present huge opportunities for a business to become more efficient and differentiate itself (i.e. selling on Amazon or bundling products).
Always be willing to improve. What are some specific areas you’d like to improve? Focus on those. Try to channel your energy into clear goals rather than on general ideas. And remember that success takes time and consistency. It may not happen overnight, but if you keep putting in the work, you will see progress.
We welcome comments, suggestions, and questions. You can write us at: bshlensky@startupconnection.net or call at 914-632-6977
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.
The challenge of learning through trial and error, not just getting a pat on the back, often leads to better outcomes. When I was a kid, all the neighborhood children, regardless of age, would play sports together. The little ones, like me, hardly stood a chance against the older kids, but they encouraged us to keep playing. I’ll never forget the thrill of hitting my first home run and seeing the older kids cheer because I had managed to do something remarkable. That’s a bit like how women’s college basketball teams improve by practicing with men—they get tougher and more skilled because of the higher challenge.
Both of these examples illustrate that facing a challenge head-on and even messing up a bit is more beneficial than just raking in trophies. Charan Ranganath points out that trial and error learning, like doing practice SAT tests, is more effective than just memorizing vocabulary. In general, learning through trial and error enables you to understand and learn from your mistakes.
When it comes to decision-making and performance, it’s not just about support and positive feedback; it’s also about embracing challenges and gaining experience.
Consider this scenario: Would you prefer competing against an expert, facing a challenge, and learning from the experience, or compete against someone where you clearly have the upper-hand?
Most people would rather spar with an expert and learn something valuable than easily win against a novice. Failure isn’t the opposite of success; it’s a steppingstone to it.
We’re often too scared of failure, avoiding risks even when they could lead to big wins. This fear holds us back in all sorts of ways, from trading stocks to making bold plays in sports. It’s not just about taking risks; it’s about being smart with the risks we take. Take Microsoft’s bold move with AI and Bing—while Alphabet played it safe, Microsoft embraced the chance to innovate.
Our reluctance to embrace new information or consider alternatives can stymie us, as we saw during the fluctuations of the pandemic. Yet, if we analyze, test, measure, and evaluate, we can learn from failure without being paralyzed by it. Kids are fearless experimenters, ever resilient, and we should take a leaf out of their book.
It is interesting watching emerging industries like A.I. and electric cars in considering success and failure. Every day there seems to be a story about emerging success or a bump in the road. In addition, the rewards for the winners will greatly justify the risk. These industries will continue to grow, and the risks taken now could pay off big time in the future.
Experience and practice reduce the challenges and provide support for future success. Many training programs are based on continued training, mentoring and trial and error. Even some aspects of surgery can be practiced on a computer. Hospitals with the most activity in providing a particular service have better results. Making the first souffle seldom succeeds, but practice can make them delectable. It is also beneficial to grow gradually and increase difficulty as you progress. For instance, I was surprised to learn that swimming is more difficult to develop conditioning in than running.
In the end, the real trick is to focus on growth and learning without the pressure of a win-lose scenario. That’s why practice teams for women’s sports emphasize skill development over direct competition—it’s about learning, not just winning.
Contact us for a FREE evaluation and get an alternative perspective on your business. We’d love to help you identify ways to adapt to current trends. No one has time for BS—so we’ll cut straight to the point and answer any questions you have. Reach us at:
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. Please visit our website: https://www.startupconnection.net/ for more information.
I dedicate this article in memoriam of Daniel Kahneman, a champion of rationality, who recently passed away at the age of 92.
This piece reflects on his profound influence on our understanding of rationality. Kahneman’s work inspired a critical examination of the economic models that too often claim constancy, only to unravel under real-world conditions. He prompted us to reconsider our assumptions and the very notion of rationality.
Rationality and the Real World
Kahneman, his colleagues, and followers led the movement towards questioning rationality. Many of us have listened to economic arguments that start with “ceturus paribus “(all things being equal) and then proceed with all kinds of formulas that ignore that warning.
Kahneman stimulated us to challenge assumptions and what is perceived as rational thought. In particular, changing data, bias, wrong data, and wrong interpretations can greatly alter analysis. One of the best examples is the pandemic where we didn’t – and still don’t – fully understand or consider the disruptions and their impact. It’s been a stark reminder of how unpredictable variables can render our data and logic incomplete.
The Dynamics of Decision-Making
I argue considering issues like bias, probability, time, and value can greatly enhance the rationality of decisions. We often assume that the information behind probability is correct. Stock advisors’ have been wrong far too often particularly as it relates to stocks that continue to increase. Our sports teams’ probabilities are probably the most common example of overestimating the rationality of outcomes. Our perceptions can significantly affect the probabilities we use. We should consider how biases color our forecasts, often painting an unrealistically rosy picture. It’s a reminder that our self-perception can diverge significantly from how others, such as our supervisors, may assess us.
Time is also a crucial factor in our decisions. A small entrepreneur is frequently worried about short-term returns in order to make a living. Venture capitalists expect short-term losses in order to grow businesses and make huge long-term gains. Similarly, the actual value of a lottery jackpot can significantly diminish when the payout time arrives. Acknowledging the importance of timing can guide more rational decisions.
The Pursuit of Better Data
We need more focus on the nature, quantity, and quality of data. The more data, the more reliability – and the less data, the more variability. We need to assure that the variables we consider to predict success are, in fact, reliable. As we navigate through an ever-changing landscape of social, economic, and political shifts, the need for accurate and comprehensive data becomes increasingly apparent.
Confidence in the Face of Uncertainty
Confidence, too, plays a vital role in shaping our strategies. Risk is underestimated by worrying about losses more than gains, ignoring outliers, and not following intuition; the success that can follow initial setbacks.
Confidence is greatly affected by understanding the parameters of decisions. Playing cards with your friends is a zero-sum game because the total winnings equal the total losses except for expenses. Investing in the stock market is over the long-term a win-win because history shows it has increased 5-15% annually. Gambling in total is a lose-lose because the house wins a particular percentage on bets. Yet we continue to lose money on an enormous amount of gambling debts.
Failure is often a requirement for success. As Thomas Edison said, “I have not failed. I’ve just found 10,000 ways that won’t work.”
Yet we sometimes fail to recognize its value in the process of achieving success. For example, fear and uncertainty accelerate the concerns about failure. Many studies have shown that we are about twice as likely to avoid losses as pursue gains. For example, we will trade stocks with gains twice as fast as selling stocks with losses despite tax advantages for selling losses. Sports teams consistently take fewer three-point shots, steal fewer bases, and attempt fewer two-point conversions than the odds would dictate.
A key process to mitigate failure is to analyze, test, measure, evaluate and examine alternatives. Why are kids not afraid of failure yet we become more afraid as we age? Just watch kids try things after they fail. I am always impressed with kids who won’t stop riding after they learn to ride a bicycle. It’s this fearlessness in the face of failure provides a valuable lesson in resilience for all of us.
Rationality also includes compromises. We tend to prefer to avoid loses rather than pursue gains. For example, most people will choose to flip a coin to avoid losses rather than do nothing for an equal choice.
Bias and Decision-Making
Bias is a critical issue in disrupting decisions and rationality. In fact, 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. For example, demographic considerations like aging, ethnic background and geography are not fully considered.
I also believe that social bias can be more impactful than statistical bias. This includes our preconceived perceptions and assumptions. I’m always amazed that many programmed employee selection tools outperform interviews especially in jobs requiring specific skills. Such tests remove things like unconscious age, sex, and racial discrimination.
Cultural Influences on Rationality
Cultural and environmental influences on bias suggest that our backgrounds can both hinder and facilitate understanding. Shared origins can often lead to more harmonious interactions. For example, dress, demographics, weather, location, and culture all affect perceptions in the decision-making process. These can also be used to your advantage. For instance, whenever I meet someone who is also from the Southside of Chicago, agreement on differences becomes much easier.
Climate Change: A Rational Approach Needed
Climate change represents a glaring example of collective inaction in the face of overwhelming scientific consensus, emphasizing the urgent need to shift toward sustainable practices. For the 10th consecutive month, Earth in March set a new monthly record for global heat — with both air temperatures and the world’s oceans hitting an all-time high for the month, according to European Union climate agency.
Climate scientists attribute most of the record heat to human-caused climate change from carbon dioxide and methane emissions produced by gas. “The trajectory will not change until concentrations of greenhouse gases in the atmosphere stop rising, which means we must stop burning fossil fuels, stop deforestation, and grow our food more sustainably as quickly as possible. Until then, we expect to break more records.
In summary, the world is far from a place where all factors are equal or decisions purely rational. By deepening our understanding of biases, recognizing the significance of time, scrutinizing probabilities, and demanding better data, we can refine our decision-making process. There is a pressing need to embrace a more nuanced and informed approach to rationality.
Contact us for a FREE evaluation and get an alternative perspective on your business. We’d love to help you identify ways to adapt to current trends. No one has time for BS—so we’ll cut straight to the point and answer any questions you have. Reach us at:
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. Please visit our website: https://www.startupconnection.net/ for more information.
In a world that often feels like it’s on repeat, the allure of outliers—the unexpected, the overlooked, the underappreciated—beckons with the promise of untold rewards and opportunities. We tend to underestimate those who dare to look beyond the horizon of the familiar and the safe. Yet, amidst the constant hum of change, volatility, and disruption shaping our modern landscape, many of us find ourselves clinging to the comfort of the predictable. This, however, is precisely where we might be missing out on monumental growth opportunities.
Trailblazers of the Uncharted Path
Consider the luminaries who’ve left indelible marks on the canvas of history: Steve Jobs, who was ousted from his own company only to return and redefine the technology landscape; Thomas Edison, whose relentless experimentation illuminated the world; Stephen Spielberg, whose initial college rejections did not deter him from becoming a cinematic titan; Bill Gates and Mark Zuckerberg, whose college dropout status did not prevent them from building empires. Their journeys underscore a pivotal insight: greatness often emerges from the outliers, from the willingness to embrace risk, to venture where intuition leads, even when it diverges from the well-trodden path. Seek outlier opportunities.
Capitalizing on the Edges of Expectation
The realm of outliers is not just about the people; it’s also about seizing on phenomena, trends, and opportunities that lie at the edges of our expectations. Like umbrella vendors who materialize at the first hint of rain, those who prepare to capitalize on these outlying events are the ones who often reap outsized rewards. Major corporations like Home Depot, The Red Cross, and Walmart exemplify this approach, developing contingency plans for unforeseen weather events, thereby not just mitigating risks but also turning potential crises into opportunities.
Harnessing Demographic Transitions
The most evident way to pursue outliers is to capitalize on emerging trends. One such fertile ground for outlier opportunities is the aging population. As we stand on the cusp of a demographic shift, with a significant portion of the global population moving into retirement, the potential for innovation in services designed to enrich the lives of the elderly is vast. From enhancing mental and social engagement to addressing the specific healthcare needs of this demographic, the aging population presents a panorama of possibilities waiting to be explored and cultivated.
Innovating the Financial Norms
The financial landscape is also ripe for outlier strategies. Traditional investment advice, like the 60-40 stocks-to-bonds ratio, is being challenged by the stark variances in returns, particularly highlighted by the tech sector’s explosive growth. These divergences signal a need for more nuanced, dynamic investment approaches that can adapt to the ever-evolving market trends.
Mastering Disaster with Cooperation
We need to recognize that volatility and change should be viewed as landscapes brimming with potential. Companies that have learned to navigate and even thrive in the face of disasters—be it Home Depot with hurricanes or schools enhancing safety protocols—demonstrate that with preparation and adaptability, challenges can be transformed into lucrative ventures. One major improvement is the cooperation rather than friction among agencies in dealing with disasters. For instance, Governor Hochul of New York even promotes that New York is the “Master of Disaster”.
Anomalies and Untapped Potential
Outlier opportunities also occur from anomalies that just occur. Consider the legal industry transformation led by firms like Skadden Arps and Wachtel Lipton, which, in the face of discrimination, carved out new niches in litigation and corporate takeovers, reshaping the legal landscape. Similarly, dealing with poor facilities, limited coaching and recruiting, and weak marketing all kept women’s sports in the background. Powered by exceptional talents like Caitlin Clark, women’s sports growing recognition points to the vast potential in markets and domains that have been historically undervalued or ignored.
Shifting Academic and Economic Landscapes
Other anomalies providing huge opportunities are the switches in college education from a focus on liberal arts to more employment-related majors. In particular, computer programming, design, engineering, and computer science are rapidly expanding while language, philosophy, and other traditional liberal arts majors are declining. In addition, schools like the U. of Illinois, Northeastern, Johns Hopkins, and Carnegie Melon are expanding, becoming more select and graduates are earning higher earnings.
Immigration as Economic Catalyst
While immigration has become a major political issue, it is more importantly a critical economic opportunity, and it presents yet another dimension where the narrative of challenge versus opportunity plays out. With economies grappling with labor shortages, the infusion of new talent and skills through immigration can act as a catalyst for growth, if navigated with foresight and strategic planning.
Rising from Challenge to Opportunity
Outlying opportunities also emerge from special events. The biggest barrier is that we become obsessed with the challenges and consequences rather than the opportunities. For example, we are still failing to manage the consequences of the pandemic. The nature of work and where it occurs have changed and we seem to adapt rather than manage. Working at home versus the office seems to be a political issue more than analyzing the economic, decision-making and social consequences.
Adapting Education in Post-Pandemic Times
Education seems to be making the least adjustment. While it is clear young children lost significant learning during the pandemic there seems little priority to restore the losses or ensure newer students get excellent opportunities.
Political and Economic Shifts as Opportunities
Political, social and economic events can create significant opportunities and challenges. Declining birth rates, geographic changes and climate control are also occurring and require better planning and management.
Health Innovations and Lifestyle Changes
With 39% of Americans considered obese and an additional 31% overweight, new weight loss drugs have the potential of having a major impact on diet and improving other health results like heart attacks and length of life. Weight loss programs, diet, exercise, and other programs have had limited results helping people lose weight and keeping it off. However, the new weight loss drugs have shown tremendous results in helping people lose weight and keep it off. They have even greater potential if issues like price, some side effects, and proving long term potential can be resolved.
Embracing Risks and Rewards in the Outlier Odyssey
Yet, the pursuit of outliers is not without its risks. The terrain is often uncharted, the outcomes uncertain. The key to navigating this uncertainty lies in a balanced approach—testing waters with modest commitments, being vigilant and adaptable, and never losing sight of the inherent passion and creativity that drive innovation. Exceptional customer service, the willingness to collaborate, and an open-minded approach to problem-solving emerge as critical enablers in this journey.
The Future Beckons: Will We Take the Leap?
So, where does this leave us? On the precipice of opportunity, with a choice to make. Will we tread the familiar paths, or will we venture into the realm of outliers, armed with the insights, strategies, and courage to explore the unexplored? The outliers beckon with the promise of growth, innovation, and transformation, challenging us to rethink our perspectives, to be agile, and to always be on the lookout for the next unexpected opportunity.
As we navigate this odyssey, let’s remember that outliers are not just about taking risks; they’re about understanding and managing those risks with intelligence, creativity, and a deep-seated belief in the potential that lies beyond the conventional. It’s a journey that demands resilience, adaptability, and a relentless pursuit of the extraordinary. And in this quest, the rewards—both personal and professional—can be as boundless as the outliers themselves.
In embracing the outlier odyssey, we might just find that what once seemed like distant possibilities are, in fact, within our reach, waiting to be seized and transformed into the next chapter of our success stories. The question is, are we ready to take that leap?
—Let’s start a conversation – no matter what stage you are in with your business. As an exercise, tell us how you have better managed challenges. Then, tell us what areas you to need focus on in order to see improvement.
Dr. Bert Shlensky of StartupConnection.net earned a PhD from the Sloan School of Management at M.I.T., mentored a few thousand clients at Score and his own practice, grew Sure Fit products from $50 million dollars to $150 million in sales including $60 million of direct internet sales, was President of WestPoint Pepperell’s Apparel Fabrics Business and headed the $400 million Culet Shirt Group. In short, he knows what works and can help you lead your company to greater profitability and success.
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!
