We’ve seen a multitude of change since the start of the Pandemic and it’s continuing to come full speed. Although change is inevitable, we must work to remain equipped to handle the drastic and rapid post-pandemic change we’re experiencing. To do this, there are some areas that deserve our concentrated attention.
Here are some current realities that continue to change and will require us to pay attention, keep up, and take action:
The pandemic is over 18 months old and is not yet over. It will undoubtedly have dramatic long-term effects on our society in ways such as continued stress, virtual work and school from home, vaccines, and new social norms and public regulations. Schools are already planning to cancel snow days and utilize e-Learning when weather is bad. A multitude of businesses are requiring proof of vaccination to enter—this includes restaurants, bars, sporting events, concerts, etc. We need a better understanding of issues and responses to post-pandemic change.
Technology is accelerating and will have long-term effects on our economy as well as our lifestyles. Tech companies like Facebook, Microsoft, Google, and Amazon are dominating. I just got the holiday wish list from my grandkids, which includes a new iPad and phone. Apparel, trips, and personal gifts are lagging while tech leads in sales.
Climate change, slower population growth, and more diversity are significant features of our society. Except for Africa, much of the world is getting older and experiencing slower growth than in previous decades.
Equitable policies and opportunities. The general response to ignore these and other critical issues is unacceptable. Political, social, and economic change are dramatically slow. For example, the time it has taken to adequately address discrimination against minorities and women is embarrassing. Sexual harassment policies and enforcement are decades behind where they should be. 18% of the population is Hispanic and they are virtually ignored.
Stress levels are heightened as evidenced by increased crime, suicides, shootings, drinking, and divorce.
Wealth inequality around the world is increasing and no one is doing anything to stop it. The number of billionaires increased from 1,000 to over 2,000 between 2010 and 2020. Their wealth grew from $3.7 trillion to over $8 trillion. The top 10% represent 80% of the wealth in our country making wealth and income very different things.
The most perplexing part about all of this is that there are solutions to most, if not all, of these problems. We simply refuse to adapt or we adapt too slowly. How have we done a good job in reducing things like car fatalities, drunk driving, diseases like Polio, etc. when we seem completely unable to reduce bullying, illiteracy, poverty, discrimination, gun violence, and climate change?
Not only do we need to possess the willingness to embrace change, we also need to be equipped with the tools that will enable us to react to change and create an action plan to keep up. Here are some suggestions to improve the speed and effectiveness of change and adaptation:
Consider structural changes. For example, there are numerous articles and books on how elite universities recruit and educate the top 1% with little progress in growing or expanding diversity. They also have billions of dollars in endowment and have been growing their endowment funds at rates of 20-40% per year recently and, yet, they are doing nothing to enact change.
In contrast, Mackenzie Scott (Jeff Bezos’ ex-wife who has $60 billion) is changing the structure of charitable giving. She is a disrupter in that she focuses on equality, gives only unrestricted gifts (no building or school names), and donates significant funds to lesser-known institutions, like black colleges, to help transform their entire organization.
Focus on reducing stress. The pandemic has caused significant stress and unhappiness and we need to take action to reverse some of that damage. My neighborhood has made an effort to increase socialization, warmth, and fun. They sponsor holiday parties, social event, networking meet ups, etc.
In general, friendliness, courtesy, and decency could significantly improve things. Greeting someone hello, saying please/thank you, giving hugs, checking in on neighbors, and offering to lend a hand really goes a long way.
Prioritize the 80-20 rule. In the modern business realm, 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.
By focusing on the products that you know your customers want, you’re making them feel much more confident—especially when you’re selling online. Instead of finding new ways to market products that simply aren’t selling, you may be better off pivoting and concentrating solely on what is selling. If you give people what they’re searching for, they’ll buy. If you don’t, they won’t. It’s that simple.
Remember technology is king. Amazon, Google, Facebook, and Apple will survive and grow as they become even more innovative and efficient. Traditional retailers with large real estate platforms and margin requirements are at great risk. Consumers are proving to prefer the perks of working at home, fast delivery, and other convenient Internet processes. Virtual offerings will continue to expand and be utilized and, therefore, they must be integrated into our structures.
Assess your digital branding and Internet presence. If you research anything about business today, it’s obvious that Apple, Google, and Amazon are three of the most important sales and communication vehicles. Nearly everyone uses their phone and/or laptop to research as well as buy products and services. I argue that digital activities and marketing need a special place in organizations and should be a major part of programs.
Don’t forget that service, image, andculture are frequently the biggest (and often least expensive) ways for small companies to develop a brand and differentiate themselves. Some suggestions: Focus on your target market and segment your ideal customer. Be polite, listen, and then act based on what you have learned. Become a trusted resource to your prospects by providing useful information that will help them make a good choice. Build an email list and send informative mailings on a regular basis. Keep in touch with potential and existing customers.
Creating and maintaining a positive company culture is a critical component in achieving excellence and establishing a great brand. A great strategy without a supportive culture will undoubtedly fail—I’ve seen it happen too many times.
Open systems are also becoming a critical aspect of great cultures as they often reject bureaucracy, authority, and hierarchy. Open systems encourage participation, diversity, new rules, and to some extent, chaos.
The post-pandemic change we’re seeing should be viewed as a critical opportunity to improve sales, profit, and competitive positioning. While there are some technical aspects to this, it is the thinking and integration of the components that can lead to success. This should not, however, become an excuse for ignoring basic good practices. Too many small business owners are getting burned by executing untested marketing strategies—and while it can be easy to get enamored with the latest technology or fad, don’t forget the importance of factors like analysis, expertise, and experience.
The current state of the world and the rapid advancement of technology are stimulating perpetual change that cannot be ignored. But, with the right mentality and a willingness to incorporate tools that will help you successfully adapt, you can thrive in this new normal.
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
“Most people do not listen with the intent to understand; they listen with the intent to reply.” —Stephen R. Covey
We’ve all been guilty of it at one point or another. We get so caught up in thinking about what we’re going to say next, that we fail to listen to what is being said. But, when we don’t work on being a better listener, we rob ourselves of the opportunity to connect with others, gain valuable information, and truly engage in the conversation. So many miscommunications result from a failure to be a good listener and really take in what is being said.
Meanwhile, most of us consider ourselves to be good listeners, when in reality, we could all probably benefit from improving our listening skills. And, acknowledging that we need to be a better listener is the first step.
Here are some examples of how poor listening occurs:
There is no question that there is more communication than ever today and that listening requires more attention, and prioritization. Many of us receive some combination of more than 100 emails, 2-3 hours of TV, 3-5 hours of interaction with a computer, read numerous books, magazines, blogs, and other papers, 1-2 hours of phone conversations, 1-2 hours with social media, 1-2 hours of podcasts, 2-3 hours of meetings, and even a little social time with our family and friends. It’s a lot to take in. How much do we hear and actually take in?
There is no escaping the fact that biases affect our attitudes and perceptions of individuals and information. While it is frequently associated with demographics, it is really much more pervasive. Aware of the fact that preconceived notions (either of a person or the content being discussed) have a dramatic effect on audience members’ understanding and acceptance of information, many presenters work to actively create positive perceptions.
One of the most significant aspects affecting listening is our perception of information. For example, I believe people don’t take enough risk. How much freedom do you allow innovative people to break rules? When do you provide support versus challenging subordinates and colleagues? While there may be analytical solutions to some of these, our predispositions are frequently more important in determining how we respond. Instead of asking questions, being a better listener, and learning more about an unconventional idea, we respond with resistance, usually because it feels safer than taking a chance.
The parameters of listening are constantly changing. New tools like Zoom, targeting, social media, etc. are constantly evolving while old ones decline. I am an original AOL customer who received a disk in the mail (how many of you even remember that?) and am in panic that AOL may cease to exist. However, that creates some great opportunities for companies who want to make mostly older customers feel comfortable—that is, if they’re listening to those concerns.
People love to talk, but hate to listen. Becoming a better listener is not merely not talking (though even that is beyond most of our powers); it means taking a vigorous human interest in what is being said. You can listen like a blank wall or like a splendid auditorium where every sound comes back fuller and richer.
We frequently debate the validity, objectivity, and bias of ineffective listening. However, simply recognizing its existence and making an effort to understand how we can improve is more important. We need to consider the problems and develop solutions.
Want to be a better listener and communicator? Try some of these suggestions:
Repeat back what you think you heard. This tactic gives the speaker the chance to repeat themselves if you misheard.
Follow Internet courtesy and practices. What we hear is greatly affected by the nature of the communication. Sending inappropriate emails by mistake is not a good practice, but happens all the time. Be courteous and brief. Target the right people and sites. YouTube, Facebook, and LinkedIn have quite different audiences and impacts. Ensure recipients are getting messages rather than creating spam or complex links.
Keep things interesting. In general, the audience, whether on the Internet or in person, forms its perceptions of a presentation in the first 90 seconds. As an admitted nerd, my presentations can be a little statistic heavy, which can translate as boring. Thus, I try to improve audience reception through tools like editors, comedy, stories, and pictures.
Keep the audience comfortable. Environmental issues can be the most ignored factor in communication. Licensing agreements, celebrity endorsements, and great environments are all designed to make the audience comfortable with presentations. Frequently, seminars are created with crowded schedules to justify the expense of taking people away from work. However, a poor technical speaker at 1:30 p.m. in an over extended morning session or at 5:30 p.m. after an all day session is most likely going to be ineffective. Research shows that serving food and not being the last presenter help to improve the impression you make on your audience. At one company, we had a motto for our presentations and meetings: “FOOD WORKS.” Fruit and penny candy are truly unheralded aids in making a great presentation.
Try to create a “WIN-WIN” environment when communicating. We all know positive feedback is received more favorably and, yet, we revert to criticism, blame, and a one-upping mentality in pressure situations. We seem to follow the common TV format of adversarial commentators that frequently provide more confusion than resolution. Try to keep things positive, constructive, and remember to strive for compromise.
The value of being a better listener is undeniable. It’s a skill and skills require practice and development. Understanding the purpose, content, and importance of communication can also help you improve outcomes. Because, let’s face it, communication is the key to a lot of things including relationships, business, and success.
Dr. Bert Shlensky, President of www.startupconnection.net, offers experience, skills, and a team devoted to developing and executing winning strategies. We guide your plans for business success and unlock your profits. Our process includes clear steps, and over 150 free articles and templates to facilitate your efforts and guide your process. We’re here to help you get on track and stay there as you move forward. We welcome comments, suggestions, and questions. You can write us at: bshlensky@startupconnection.net or call at 914-632-6977
The pandemic was accompanied by an incremental increase in E-commerce. This was not a short-term blip; I believe we simply jumpstarted the inevitable. Therefore, we need to understand the strengths of E-commerce and maximize both the sales and marketing opportunities.
Let’s look at how E-commerce is changing the way consumers engage:
E-commerce sales are now estimated to be about 30-35% of retail sales. Amazon has grown from $28 billion in 2010 to almost $600 billion in 2021. Google ads grew from $28 billion in 2010 to $147 billion in 2020.
Other industries are also dramatically changing and shifting to digital systems. For example, according to Jamie Dimon from Chase, “From loans to payment systems to investing, they have done a great job in developing easy-to-use, intuitive, fast and smart products.”
Retail is facing extensive challenges. Stores are closing and many companies are shutting down altogether. They are also facing higher expenses, decreased traffic, and require higher margins than E-commerce. Personally, trips to places like Lord and Taylor, Pennies, Sears, and K-Mart are now only memories.
These changes are creating significant opportunities for E-commerce. For example:
E-commerce can be simpler and more efficient than regular retail. Delivery, security, and customer service have dramatically improved, which makes it a better experience.
Prices are generally lower as E-commerce doesn’t have the inventory, personnel, logistics, and real estate costs of a brick and mortar store. Additionally, retailers with E-commerce are struggling to balance the costs and prices of two different strategies.
Marketing for E-commerce can be quicker, more flexible, and less expensive than retail. You can quickly see results, test different programs, and compare different strategies with E-Commerce, and testing and comparisons are in their infancy.
Both marketing and sales can provide you a customer or potential customer’s name, e-mail, what they bought, what they considered, and other information. These names can provide low-cost marketing information for years.
Suppliers like Amazon and Google offer significant feedback and suggestions to improve performance and results.
E-commerce offers a much wider range of products including varieties, colors, competition, and promotions. They have a one or a few distribution centers while retailers have to stock multiple stores.
There are numerous marketing tools available including memberships, social media, e-mails, paid search, targeting, and follow up.
There is greater product information available including instructions, directions, ratings, reviews, videos, etc.
It can save time in terms of not going to a store, dealing with out of stocks and, most importantly, being available 24/7.
E-commerce offers a special advantage of being able to market to broader audiences including international and, at the same time, customizing messages to the individual.
A great opportunity for E-commerce is to improve search and information to better interact with consumers and provide a more personal experience. Research has shown that customers love personalized experiences, as it shows the business respects them enough to offer attention. It’s also proven to increase the customer conversion rate.
E-commerce can be especially beneficial to small retailers who can specialize and cater to local customers and competition.
E-commerce allows and encourages integration of sales, communication, branding, and marketing.
The potential growth of E-commerce is virtually unlimited. They key is spending the time to understand and take advantage of the opportunities. In particular, we need to better learn how to communicate with, market to, and provide assistance to the individual customer. Increasing efforts in communication, developing better E-commerce materials, and analyzing potential and results need as much attention as specific marketing efforts. Like most worthwhile endeavors, incorporating and/or improving your E-commerce offering may take some work and time to adjust, but the benefits can be a game changer for your business.
Dr. Bert Shlensky, President of StartupConnection.net, offers experience, skills, and a team devoted to developing and executing winning strategies. We guide your plans for business success and unlock your profits.Our process includes clear steps, and over 150 free articles and templates to facilitate your efforts and guide your process. We’re here to help you get on track and stay there as you move forward. We welcome comments, suggestions, and questions. You can write us at: bshlensky@startupconnection.net or call at 914-632-6977
We all know what happens when we assume… And yet, how many of our decisions are based on untested information and assumptions? Have you ever been told to wait an hour after eating before swimming or you’ll drown? Where did this information come from and why do we accept it to be true?
Bubbe-meise is a Yiddish term used to describe old wives’ tales. Some examples include: It’s bad luck to open an umbrella in the house. Eat all your food—there are starving children in Europe! Chicken soup will cure anything!
In general, we tend to accept beliefs, data, news, teachers etc. as valid. Even putting aside lies, probabilities, bias, incompetence, etc., we accept a lot of bad information, assumptions, and suggestions. Why is this?
We need to question more, check resources, and test assumptions in order to make better decisions.
Frank and Ernest Comic
Perceptions and inherent patterns can also cause inadvertent actions. Recently, social scientists have focused on how we make seemingly obvious decisions. The results show most people tend to be risk adverse, avoid change, and accept the most comfortable alternatives. So, while we can work to change a bad decision at any time, we frequently avoid, delay, or defer change and, thus, draw out a negative situation. For example:
Denying the effectiveness of COVID vaccines is just unexplainable. For years, we have accepted seat belts, polio and various other vaccines, not driving while drunk, and many other safety measures. The vaccines are just a similar precaution to save lives.
Many economic proposals ignore that the k economy is getting even more evident. The k economy argues that economic recovery is experiencing different rates among the poor and the affluent. Specifically, the poor are experiencing even more problems while working class and the rich especially are experiencing exponential gains. Excluding this information is irresponsible and will only produce inaccurate conclusions.
Discussions about returning to work and school are frequently based on personal opinions and biases. Why can’t we recognize we lack perfect information and rely on and test the knowledge we have?
The solutions to these issues are not simple or obvious. However, we can pay more attention to alternatives, successful examples, and valid data while focusing less on personal opinions and bias. In particular, we need to include the parameters and process in our deliberations. Other helpful strategies include:
Get the politics of the issues out of the discussions. How many poor decisions are made because we think that’s what the boss wants? Or because “that’s the way it’s always done?” Or because we’re afraid to speak up? Or because we refuse to acknowledge that the situation has changed? Drop the ego and make fact-based decisions.
Utilize analytics. This is an incredible tool for improving success, developing alternatives, and measuring outcomes. However, analytics can be less reliable when the data is wrong, we assume invalid relationships, sampling is inappropriate, and risk is not considered.
Review and evaluate processes and decisions. It is unreal to me that objective testing mostly outperforms personal interviews in staffing decisions. But, the reason is mostly because of poor training and bias.
Stop using old or incorrect data. We need to check that our sources are correct and up-to-date. The pandemic has significantly affected data and trends using 2020 information. The census shows some dramatic changes in the population—in particular, we need to consider diversity. For example, different regions have significantly different ethnic characteristics.
Don’t ignore facts and tradeoffs. Going back to the office has many tradeoffs such as commuting time and communication among employees. We need to understand the issues, develop flexible solutions, and test various alternatives rather than relying on personal preferences of people.
Consider the conditions of a situation. Facts are frequently more independent than we think. If you flip a fair coin, the odds are still 50-50 (regardless of the last few flips because the flips are independent). However, sports analysts have proven that certain conditions, like left-handed batters hitting to right field, are more probable.
Don’t assume cause and effect. We frequently jump to conclusions before doing a proper analysis. Differing and multiple goals (such as short-term and long-term) can impact the understanding of cause and effect. Medical symptoms are often incorrectly diagnosed because a correlation was detected, which could be mere coincidence. Too often, an assumption is made and a diagnosis is given before things like environment, heredity, or psychological factors are even taken into consideration.
Check your biases. The biggest issue is probably bias, which is most evident in political and economic arguments. Questions like: Why are the poor are poor? What is the impact of IQ? How will the stock market perform? What are the causes of crime? These types of questions all involve a complex analysis of a variety of factors. And yet, everyone seems to chime in with an unchecked, biased opinion.
Bias is one of the greatest complications when it comes to accuracy in the scientific analysis of decisions. This includes statistical problems like sampling, measurement, and development of information. I also believe that social bias can be more impactful than statistical bias—this includes our preconceived perceptions and assumptions about factors affecting decisions. Cultural and environmental factors also affect bias.
Analytics, tradition, and experience are all valuable tools that help improve decision-making. However, we need to ensure that the assumptions behind those tools are accurate and reliable. In particular, our rapidly changing environment (especially in regard to issues like COVID) requires regular testing and validation. Similarly, creativity and intuition that defy some analyses are becoming increasingly necessary. Search alternative causes and solutions, test your assumptions, and always ask yourself: Why do I believe what I believe? How do I know my information is correct?
Dr. Bert Shlensky, President of www.startupconnection.net, offers experience, skills, and a team devoted to developing and executing winning strategies. This combination has been the key to client success. We welcome comments, suggestions, and questions. You can write him at: bshlensky@startupconnection.net or call at 914-632-6977
If someone offered you a million dollars, would you accept it? Some of us might be quick to answer yes, when in reality, we should be asking, “What are the conditions?” You need to know the parameters in order to make sound decisions and understand variables or analysis. Parameters describe specific characteristics of our population, market, and environment. They are critical because we frequently ignore aspects of a situation that are critical to our analysis.
For example, details of the 2020 census were just published and there are some clear trends that need to be considered. Most importantly: Diversity is not just some political issue. The growth of minority groups, urban population, the south, and the decline of the white population are actually critical factors in understanding marketing and analytical challenges.
Income inequality, diversity, global events, and the environment (including the pandemic) are key factors affecting even small businesses. Here are some parameters to consider that may help improve effectiveness:
Population: In 1990, the white population represented over 80% of the population compared to 57% today, and it will continue to decline.
Social changes: Women and minorities are not always treated with dignity as employees and consumers. Andrew Cuomo’s recent explanation of his behavior reminded my wife that she still remembers going to buy a car and being ignored by dealers and being called “honey.” We need to consider proper behavior towards all participants.
The Internet of Things: The Internet and its usage, especially among younger people, will continue to explode. Nearly every consumer-based market is dominated by businesses that are capitalizing on the Internet of Things, like Amazon and Google. Similarly, sharing services like Uber, Airbnb, Amazon, and thousands of other businesses are disrupting their individual markets.
Analytics: Chances are that your competitors are already taking advantage of a myriad of advanced analytical tools. CRM systems are completely changing the game and giving businesses new opportunities to understand their customer base.
Wealth distribution is becoming increasingly more unequal. 10% of the population control 80% of the wealth in this country. The pandemic has only accelerated this trend.
Our physical and social environments continue to shift. Climate change, political unrest and polarization, as well as other disruptions around the world are causing increased instability. We need to be ready to adjust accordingly and, therefore, these areas require significant new analysis and strategies. Recent rapid changes in areas like COVID, New York State, and Afghanistan illustrate the need to recognize both the speed of change and the need for new solutions.
Income: The reality is that the top 1% of the population accounts for about 80% of income (and this number continues to increase) while the lower 20-40% continues to struggle. Marketing to struggling service workers requires far different strategies than marketing to Silicon Valley millennials. We need to recognize the presence of the K-economy (one for the rich and one for the poor) and develop differentiated solutions.
The pandemic: Data from 2020 and 2021 needs to be carefully considered. For example, productivity is currently running 3-4% compared to a historic 2-3%. Is that permanent, a trend, or just a temporary result? There are presumably about 10 million unfilled jobs and there are 9 million people looking for work. How will that evolve? What are the permanent social impacts in areas like work from home, business travel, virtual education, entertainment, health care, etc.?
As you consider parameters, here are some suggestions to help you adjust:
Embrace diversity. We need to be aware of our environment and recognize where there is inequality. And then, work to create equitable change.
Improve measurement and understanding. Improved analytics gives us the capabilities to better understand populations and responses. For example, Hispanics represent 18% of the population and Asians 8%, while blacks represent an almost constant 12%. These segments are more concentrated in certain geographic regions, but need more attention in every focus. Hispanics also represent 17% of the under 18 population and only 4% of the over 70 population.
Remember that interacting parameters have as much impact as individual. Bias change, potential, etc. all affect decisions and outcomes. For example, analytics advises us to pursue the most likely outcomes. However, intuition, passion, and effort underscore most venture capital successes.
Manage changes in parameters. The best example is in finance where the economy has experienced low interest rates and inflation for the last several years. One outcome is that stocks have returned 10-15% while bonds only 2-5% over the last 10 years. However, financial advisors have been slow to change and investors have received lower returns.
Don’t ignore tools to understand parameters. While factors that may show relationships, don’t misunderstand cause and effect. Many algorithms assume linear distributions while information is frequently more complex. In particular, intuition and outside outcomes are more likely than we think. Probability and risk should always be considered in analysis.
Parameters need to be managed to improve decisions. Understanding the risk, the rewards, and the importance of issues can improve outcomes. Don’t allow fear, uncertainty, or tradition to lower your potential and prevent you from trying something new. This includes both analytical and social issues. The realities and changes in parameters like populations, the economy, political environment, and social values should all be reviewed and considered regularly. The most important thing to keep in mind is that many variables are changing faster and more often than ever before. So, not only do you need to understand parameters, you need to keep up with the latest ones!
Dr. Shlensky is a graduate of Sloan School of Management at M.I.T. He served as the president of WestPoint Pepperell’s apparel fabrics business & President and CEO of Sure Fit Products before starting StartupConnection. Having provided counseling to over 2,000 clients, he now focuses on working with select startups and small businesses.
When it comes to our business, we want to ensure we’re hiring quality employees who we can trust. Selecting and reviewing employees is a critical aspect of your business’ success—you’re choosing who you’ll work alongside, who will represent your brand, carry out day to day tasks, and interact with customers. How do you ensure that you’re selecting employees that are a good fit?
Although many of us consider ourselves experts on employee selection and evaluation, there are numerous objective reviews of the process that show significant opportunities to improve. The major issues usually revolve around what you are selecting and how and what you are measuring. In particular, personality and “fit” frequently receive too much attention while skills, experience, and motivation do not receive enough. I would also argue that the process is burdened with many complex efforts that produce minimal results.
The process of selecting and reviewing employees can be significantly improved with some simple tools that incorporate both the nature of the job and measuring the right factors correctly.
What are you really looking for? Looking for a car mechanic, surgeon, and other specialists is far different than looking for a social worker, manager, or other candidate that needs to fit in and support an organization.
Additionally, many efforts focus too much attention on long-term potential when many candidates will be gone in short periods. I think the interview question “where do you want be in five years?” is usually irrelevant. Many people won’t be there in five years, they don’t have a real answer to the question, and their answers are often based on interview training rather than validity.
In my opinion, skills, intelligence, experience, and motivation are far better predictors of success than social skills, common interests, and appearance. While this may seem like common knowledge, many decisions concerning selecting and reviewing employees are made in less than a minute (based mostly on appearance). This is a partial explanation for a well-proven theory that analysis can outperform interviews in predicting performance especially in well-defined situations.
How are you measuring what you’re looking for? In general, the process of selecting and reviewing employees is less effective with informal interviews, few criteria, too many data points, and less structure.In contrast, clear criteria, more structure, and trained interviewers can improve the process.
For example, the process of one person conducting multiple interviews with random people and averaging the evaluations has many potential concerns. In contrast, having different interviewers reviewing various relevant concerns and comparing the results can be highly beneficial to get valid perspectives. These initial evaluations should also be independent until all reviews are public to prevent results from being influenced by external factors.
Diversity should be an opportunity and not a burden. There is no denying that explicit and implicit discrimination are more common than we realize. In particular, when you review diversity in occupations, politics, business, etc. the progress is very slow. It will take aggressive and committed strategies to accelerate the process. Even programs like STEM (which attempt to get more women into science) do not fully understand the barriers and reluctance to accept more recruits.
Diversity is an opportunity: it increases the number of qualified and excellent people to select from and can increase organizational effectiveness. Areas like law, medicine, and the military have greatly benefited from increased diversity. Employee diversity also adds to the perspective of organizations. It can provide greater understanding of the strategies and needs of particular segments and audiences. We need to recognize that women make up about half the labor force and minorities currently make up over 50% of births. Fostering a company culture that focuses on inclusion will only make your business stronger.
Background information like skills, education, experience, and references are more important than you realize. Skills, education, and experience are fairly reliable determinants of the potential for success. In particular, education does show real accomplishment, maturity, and skills of candidates. However, it’s important that these factors don’t become the sole criteria so that other great people aren’t precluded from consideration. For example, how many great candidates are excluded due to professional organizations recruiting only at the top schools?
How do make a final decision when selecting employees? Frequently, the most significant barrier is bias. While simple predictors and sharing perceptions after interviews can be very helpful, we must be careful to avoid the trap of judging candidates after a minute or so on superficial criteria. We must also look for special characteristics that might make a candidate unique. Ask yourself: Am I looking for people who can just do the job, people who will be long-term employees, or someone who possesses something extra special?
The right fit depends on their needs as much as it does on yours.
Test and evaluate your results. Are you measuring your results and achieving your goals? Are your methods and processes effective? Are you attracting and reviewing the right candidates? For example, finding the right pool of candidates to choose from is a critical step in the process. This might mean you need to change where you’re advertising the job or expand the location you’re hiring in—is this a job that can be done remotely? You may need to consider out of state candidates. Perhaps, you need to rewrite the job listing—some excellent candidates may not apply if the listing has spelling errors or the description doesn’t sound enticing enough.
If you find that you’re not hiring effective candidates, take a look at your process. Are you differentiating between job requirements, candidates, and methods? It’s not a one size fits all process. For example, some jobs require great social skills and some do not. When interviewing candidates, make sure you’re focusing on the skills they possess that could make them great and not the skills they lack, if they aren’t essential to the position.
In general, objectivity, skills, structure, and alternative reviews can improve the hiring process while bias, subjective reviews, and poor information can detract from it. And keep in mind that great people don’t always make great employees. Therefore, in our efforts to be more effective in selecting employees, we must understand the process and acknowledge the difference between a candidate who is qualified on paper and an employee who is a valuable asset to our company.
Dr. Shlensky, President of StartupConnection.net, is a graduate of Sloan School of Management at M.I.T. He servedas the president of WestPoint Pepperell’s apparel fabrics business & President and CEO of Sure Fit Products. Having provided counseling to over 2,000 clients, he now focuses on working with select startups and small businesses.
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