All of our decisions, both personal and business related, are influenced by issues of support versus tough love. When it comes to small business, I prefer an approach that ensures adequate understanding and support in order to help someone develop the confidence and skills required to make sound decisions. This approach can also facilitate tough love strategies (when needed) that require analysis, reality, and challenge. Choosing the timing and nature of the combination can be made effective.
Training, mentoring, teamwork, and confidence are critical for effective decision-making. Nevertheless, tough love in the form of technical information, probability, and risk are necessary to validate the decision process. In other words, you must develop methods of support to realistically assess the tough love components of decision-making.
Here are some suggestions to achieve that balance:
Start with understanding the culture and participants. For example, I tend to be left brain and more technical. Others are more right brain and supportive. You need both. Yet, many people are too proud and reject help. It’s easy to be so convinced of what you’re saying that you end up ignoring how your listeners will receive your words. For example, if you take into account who your audience is, you can cater how you present your information in order to be more effective. This is especially important when dealing with technical information and strong opinions.
Age, status, education, and reputation of the listener and communicator can all dramatically affect perceptions. We frequently underestimate the importance of the perceptions of analytical information in communicating arguments among different groups. For example, our treatment of minority groups like Asians and Native Americans is frequently not considered. If you don’t understand where your audience is coming from, you’re probably not going to be able to help them or communicate effectively with them.
Improve Decision Making. We like simple and easy solutions. People with great intentions can sometimes lack understanding. Simple, clear, and actionable efforts can resolve this. A simple suggestion: annual analysis is much simpler to understand and analyze unless you need the monthly changes.
Communication also needs a “WIN-WIN” mindset instead of a competitive environment. We know positive feedback is received more favorably and, yet, how often do we see (or even participate in) criticism, blame, and one-upping when we find ourselves in pressure situations? Can you find ways to compromise and look for solutions that benefit all instead of just one? For example, following the 80-20 rule and focusing on the best opportunities is one of the most productive efforts to be supportive and address tough love issues.
Tom Peters’ book, Management by Walking Around, is the best management tool for mitigating the support versus tough love dilemma. It encourages a relaxed atmosphere where one can understand the context of an issue or the background of an individual. A corollary of that tool is maintaining informality, which is important in the pandemic environment. Informal meetings with customers and colleagues as well as informal lunches or social events can be highly beneficial. One of the simplest and best tools to develop support is to simply say please, thank you, and ask, “How are you?”
Environmental issues can be the most ignored factor in creating a culture. Hierarchical structures, formal office settings, and even dress code can affect problem solving. We need to understand and adjust to new rules of communication and collaboration. The pandemic has forced us to adapt in a plethora of ways: work from home, social gatherings, video meetings, etc. And there will continue to be change as the “new normal” becomes more defined. It’s important to keep working to understand the environment and how it affects you and your employees, coworkers, and customers. Furthermore, what type of environment can you create to support your small business?
Organizations and individuals with more open communication are more effective. Practices like “need to know” are simply obsolete. The more people know, the more effective they can be in their work. When everyone is on the same page, more gets done efficiently.
We cannot ignore facts, analysis, and challenges when making decisions. It’s critical to remember that they’re most effective when used to support, improve, and understand decisions rather than simply challenge them. Tools like exploring alternatives, listening to experts, writing things down, and informal communication can frequently improve the process. We also need to consider the accuracy and validity of the information, the risk involved in various decisions, and personal preferences. Like so much in life, it’s about finding the right balance and it won’t be the same for everyone. So, take some time to consider: Where can I afford to be more supportive and where do I need to administer some tough love?
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: StartupConnection.net for more information.
Let’s face it: Bureaucracy has lost much of its effectiveness. The entire system needs a dramatic overhaul. Many aspects of bureaucracy actually cause reduced organizational effectiveness. Hierarchy, which implies power based on position, limits the impact of new research and expertise in decision-making. Even Max Weber, one of the original advocates of bureaucracy, understood that it could be threatened when focusing on “the rules” overshadows the actual goals. This happens constantly, which means the system is broken. When things aren’t getting accomplished because we’re stuck following ineffective procedures, it’s time to change the process. We’ve all experienced this. How many times have you found yourself unable to complete (what should be) a simple task because of a flawed system? Ever find yourself passed around from person to person and no one seems to have an answer for you?
We find this model works better for us!
Bureaucracy also lacks the vision and flexibility to deal with innovation and the increased pace of change in our environments. In short, bureaucracy, rather than performance, becomes the goal. My worst nightmare regarding bureaucracy is the phrase, “We’ve always done it that way.” It’s a refusal to consider alternatives and, thus, a recipe for failure.
Even more perplexing is the fact that we continue to ignore some proven models of success. Open systems and collaboration, in my opinion, are like winning the trifecta at the horse track. They have been around for a long time, but are just now becoming the norm for success. They reject bureaucracy, authority, hierarchy, and closed decision-making processes. They encourage participation, diversity, new rules, and to some extent, chaos.
It should come as no surprise that open systems are superior and continuing to do things “the way we’ve always done it” is a dead-end. But, society as well as businesses fail to recognize that old paradigms and structures are failing:
Large corporate structures (print publications, big banks, and brick and mortar retailers) are all gradual losers, or even worse. Even Jamie Dimon of Chase recognizes that banks have allowed Fin-Tech startups to threaten their future growth.
Companies and society continue to do what they have done in the past, often with poor results. Despite massive economic and political efforts, issues like income inequality, healthcare, and infrastructure investment will continue to hold our economy back.
How do you move away from bureaucracy and toward open communication?
Innovation and Discipline
Innovation and discipline can coexist. It requires improving autonomy at all levels as you simultaneously increase discipline. For example, Google, among other big corporations, are developing artificial intelligence (AI) programs to write and develop artistic works like music and art. They argue that this technology will greatly enhance an artist’s ability to create. Others disagree, saying that it will just replace artists.
My own experience in the knitting industry showed me that automation greatly enhances an artist’s potential and reduces mundane tasks. (At one time, mechanics had to spend hours making chain links to design a new sweater.) I believe that similar improvements are evident in areas like digital photography and inventory management.
Focus and Diversification
Some businesses try to randomly pursue diverse options by simply throwing s**t at the wall and seeing what sticks. Others complete so much research and planning that, in the process, aspects like goals, probabilities, and outcomes are overshadowed or forgotten. Business owners need to identify priorities and focus. From there, test and adopt or change as opportunities or issues arise. It’s important to remember that many plans are based on wrong assumptions or are poorly executed and, therefore, do not succeed or are unable to adjust to change.
For example, I was working with a client who was trying to execute over 15 different educational programs and was stressed out, over budget, and not managing effectively. We simply cut out the least effective programs, which saved money and, as a result, were able to allot additional attention and resources to the more effective ones. Focusing your strategy can be accomplished with a few simple efforts:
Measure, Estimate, Prioritize, and Adapt.
Follow the 80-20 rule.
Make mistakes and learn from them.
Be open to change and feedback.
Experience and Expertise
In his book “Outliers,” Malcolm Gladwell became famous for stating that, “10,000 hours of practice are required to become a world-class expert.” I am not sure it is 10,000 hours, but my experience indicates that experience and expertise are probably the most important factors in achieving success. That doesn’t mean you need expertise in everything, but it does mean you need at least a hook in the field you are pursuing. And if you know you are lacking expertise in a critical area, I suggest hiring someone to help.
For example, right-brain creatives typically don’t like financial analysis so it’s usually a good idea for them to hire an accountant. In the last couple of weeks, I have had clients with seemingly great ideas and passion who overestimated their gross margins by 10-20%. They simply didn’t do the detailed financial work and didn’t understand that those numbers could make a huge difference between profit and loss.
This argument is not intended to ignore the importance of passion, commitment, innovation, testing, and even mistake making. I’m just saying that both individuals and organizations need to realistically assess the risk of failure and the reward of success. Expertise and experience are critical for accurately evaluating opportunities and new innovations.
Risk and Evaluation
Are all of the aspects of a decision understood? Do you know the probability of reward, the amount of the reward, and the value of the reward? For example, what are the goals of your efforts? My clients are usually small businesses who need to make a profit and earn a living. Thus, they frequently pursue less risk.
In contrast, venture capital firms are frequently pursuing growth and worry whether the enterprise will be large enough to generate large returns. Therefore, they expect a certain amount of loss as well as some lost investments in order to generate large growth and profits in other areas. Where does your business stand? And how much can you afford to risk?
Analytics and Intuition
The increased use of analytics over intuition has been significant in improving the understanding and results of decision-making. While there are no quick and simple resolutions, there are a few simple rules to improve the decision process using both analytics and intuition.
‘Outcomes…normally we just measure the height of the files.’
Analytics is simply the increased use of research, models, probability, risk, numbers, and analysis to improve decision-making. In some cases, it has proved to be a valuable tool to understand and improve decisions or simply validate prior intuition—particularly where there is plenty of stability and historical data. For example, I have helped several of my clients improve their businesses by focusing on the 20 percent of customers or products, which we know, statistically, accounts for 80 percent of their sales.
Forget Fear.
Few sports teams, sales calls, or competitions achieve more than a 50 percent success rate. Rather than dwell on and sulk over losses, analyze your mistakes and research how to improve. Additionally, cultivate a business culture that values feedback, encourages communication, and supports collaboration. Open and honest communication on all levels is the only way to move past mistakes in a productive manner.
Empower Employees.
Giving your staff and management teams the freedom to make decisions and take (reasonable) risks can result in improved productivity. When you hire and train talented and trustworthy people, you can rest assured that they will do their jobs to the best of their ability and, ideally, add value to your business. When employees feel trusted and are given the autonomy to take chances, they’re more likely to think outside the box and offer alternative solutions. This authority in decision-making also means that employees will make mistakes at times and it’s important to remember, once again, that without failure, there is no success.
Look Beyond Your Circle.
It’s imperative to have external resources for obtaining information and receiving feedback. You need people who will tell you the truth without sugarcoating it. Make sure you have a reliable network that understands your business needs.
In general, I recommend more consideration of the process of decision-making. How good is our information, what are the consequences of mistakes and how much risk can we afford? I believe with the exception of issues like safety we can afford more risk and openness. We generally are overly concerned with the consequences of mistakes rather than the potential of risk.
And finally, let go of bureaucracy. Yes, it can be scary to transition to something new, but familiarity doesn’t equal success. In fact, sticking with something just because it’s comfortable usually isn’t beneficial. And, shockingly enough, sticking with something that doesn’t work (i.e. bureaucracy) also doesn’t work. It’s broken and it’s not worth fixing. It’s time to replace it.
Dr. Bert Shlensky is the president of www.startupconnection.net. He and his team of experts focus on helping businesses develop integrated customer-focused marketing programs that are key to business startup success. Dr. Shlensky’s most recent book is entitled, “Passion and Reality and Small Business Success.” You can reach Dr. Shlensky at: 914-632-6977 or email him at: bshlensky@startupconnection.net
At some point, through everything COVID, we’ve all wondered: when will things return to normal? The short answer is: never. Things won’t (and can’t) return to the way they once were. And, despite extensive planning and attempts to reopen the economy, there will be change and it will usher in a new normal.
Nowhere is this more evident than with the economy. Every day we hear success stories like Peloton and Papa John’s Pizza who are absolutely thriving. However, this drowns out the noise of businesses like Hertz, JCPenney, J. Crew, and Wework who have gone (or are in the process of going) out of business. Everyone is touting the need to preserve and support small businesses with absolutely no idea how to save them. The reality is that hundreds of thousands of small business are no longer viable and will be gone. Industries such as airlines, travel, gyms, hotels, recreation, sports, and restaurants will need completely revamped models in order to survive.
The economic issues are compounded by the integration of social circumstances. Social distancing is the elephant in the room and it’s completely disrupting many industries: 25% to 50% restaurants, hotels, airlines, and theaters cannot function (profitably) this way. Simultaneously, we are learning to like and, perhaps even enthusiastically, incorporate certain aspects of the current situation into our daily lives. Working from home, delivery and take out, and Zoom meetings are all becoming preferred activities.
An obvious game changer would be a vaccine. However, the uncertainty of when and how that might happen leaves us with no choice but to forge ahead with the information we have and the circumstances in which we currently we find ourselves. So, let’s examine some obvious changes that need to be managed to get to a new normal:
Office space, rush hour, lunchtime eating, and traffic will reduce by at least 15-30% as working from home becomes largely preferred.
Entertainment, sports, restaurants, and travel will reduce by 15-30% as patronage drops due to capacity limits / spacing requirements, cleaning protocols, and other restrictions.
2020 is and will continue to be a chaotic disaster. There is already overwhelming uncertainty regarding a vaccine, the virus itself, the economy, unemployment, education, the upcoming election, and increased social unrest in the form of protests.
Many forms of stress release have been taken away or changed due to the stay-at-home order (i.e. entertainment, exercise, visiting with friends). Unmanaged stress can lead to depression, unhealthy behaviors, and increased instances of family abuse.
Other major concerns: absorbing shutdowns, 10% unemployment rate, 100,000 virus deaths, -5% GDP decline, and a few more government stimulus programs.
As states start the process of reopening the economy and more businesses and schools startup again, we might expect a second wave of the virus followed by another (full or partial) shutdown.
Therefore, amidst all of the uncertainty and change, it’s absolutely necessary to focus on stabilizing, developing alternatives, and accepting that a new normal is inevitable.
In contrast, 2021 could offer some huge opportunities and a turnaround in regard to many of the things above. The election, fewer deaths, 4-7% unemployment, 2-5% economic growth, and a gradual relocation / increase of public activities are fairly reasonable predictions.
So, how do we move forward effectively?
Hope for a vaccine should not be discarded, but it also shouldn’t be counted on.
Don’t get distracted looking for quick solutions rather than attempting to implement new paradigms. Drive-in movies and restaurants may be nice temporary activities, but they are not long-term solutions. Meanwhile, opportunities to work-from-home and Zoom calls are providing whole new structural alternatives. The problem, however, is that we need to maximize their potential rather than just settling for their existence.
The pandemic has shed light on the fact that many of our institutions (such as schools, health care, social services, and retirement homes) are extremely broken and require structural change. We need to learn to focus on developing great programs rather than simply putting Band-Aids on problems. For example, nursing homes should be smaller and more patient-centered instead of resembling an overstocked warehouse. Many nursing homes have very diverse populations grouped together with little hope or expertise to service individual needs.
Many other businesses and industries (like post offices) are changing as well. Discussions generally focus on close, fund, or shrink, but alternatives (such as changing models, merging, adding programs etc.) should receive more attention. For example, I have an apparel client who is now making masks and safety equipment. Shifting needs requires shifting business models.
Remote efforts, technology, and innovation are the key trends to keep an eye on. Activities and services that require crowds and/or physical contact will continue to be problematic. I think much of the discussion to follow will be about the technologies regarding issues like social distance in public (i.e. elevators) and how to improve working from home. We have the opportunity to create new work environments and should start by considering the goals, strengths, and constraints. For example, it’s easy to advocate only allowing half the people in an elevator at a time, but that doesn’t get thousands of people up the elevator of a 30-story building in a timely manner.
Everyone tries to discount politics in forecasting, but it is critical during this period. I believe the Democrats will have a landslide in all areas including state and local government. This would certainly embrace climate change, infrastructure, education, health care, taxing the 1%, immigration, and social rights. Less of a landslide or loss would bring about very different changes. Either way, we must incorporate our assumptions into our actions and not ignore politics simply because it’s an uncomfortable topic.
While we’re still not sure what exactly the new normal will require, we do know many of the opportunities and challenges that will come with it. Avoid engaging in obsolete or doomed activities and, instead, embrace innovation, testing, and new paradigms. All cultural change starts with openness, includes a focus on infrastructure and measurement, and requires an awareness of biases. And, ideally, those steps lead the way to cultural change that ends in positive progress.
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
Too many cooks spoil the broth. A child, looked after by
seven nannies, is a child with one eye… Phrase it however you want, but when many
manage one thing, some things are missed or turn out wrong. The camel analogy
specifically criticizes committees and group decision making, implying that
incompetence results when too many people are involved on a project. Therefore,
the camel’s humps reflect bad planning and inept design when the original concept
was a horse.
These proverbs speak to a number of current issues
regarding decision making, innovation, and performance. It’s worth asking: How
disciplined, organized, programmed, and/or fact-based should decisions be? Or are
we heading in the direction of unstructured, flexible, creative, and innovative
planning?
Unfortunately, we tend to rely on preset parameters or
stick to old habits rather than pursuing the most effective process. So, let’s
explore some topics that can help you decide what the best plan of action might
be for any given scenario:
Camel (Committee)
Versus (Horse) Individualism
The simple answer is it depends. If you have a thriving
company with ample market and internal capabilities, diversifying can be an
exciting option. In particular, vertical and horizontal integrations can assist
in achieving better use of your resources. Similarly, if you have operations or
marketing capabilities, cooperation can be highly productive in better
utilizing those resources.
In contrast, the less resources, knowledge, or experience
you have with cooperation, the less you should do it. Diversification does not
work effectively in business cultures that have no synergy. Similarly,
cooperation frequently fails when it is done to solve or cover up weaknesses. The
K-Mart and Sears merger is one of the best examples of failed diversification
which was executed with poor management and a prayer that two losers would make
a winner.
Innovation Versus Discipline
I believe innovation and discipline can coexist. You
simply need to focus on improving autonomy at all levels as you simultaneously
increase discipline. For example, Google, among other big corporations, are
developing artificial intelligence (AI) programs to write and develop artistic
works like music and art. They argue that this technology will greatly enhance
an artist’s ability to create. Others disagree, saying that it will just
replace artists. My own experience in the knitting industry showed me that
automation greatly enhances an artist’s potential and reduces mundane tasks. I
believe that similar improvements are evident in areas like digital photography
and animation.
George Bernard Shaw said, “The reasonable man adapts himself to the
world; the unreasonable one persists in trying to adapt the world to himself.
Therefore, all progress depends on the unreasonable man.” Similarly, Steve Jobs
quipped that if he asked customers what they wanted; it would be obsolete
before he got it on the shelves. So, it remains that innovation is a
necessity, but if it’s unmonitored, you may end up with that pesky camel…
Focus Versus
Diversification
Some businesses
try to randomly pursue diverse options by simply throwing s**t at the wall and
seeing what sticks. Others complete so much research and planning that, in the
process, aspects like goals, probabilities, and outcomes are overshadowed or
forgotten. Business owners need to identify priorities and focus. From there,
test and adopt or change as opportunities or issues arise. It’s important to
remember that many plans are based on wrong assumptions or are poorly executed
and, therefore, do not succeed or are unable to adjust to change.
For example, I
was working with a client who was trying to execute over 15 different
educational programs and was stressed out, over budget, and not managing
effectively. We simply cut out the least effective programs which saved money
and, as a result, were able to allot additional attention and resources to the
more effective ones. Focusing your strategy can be accomplished with a few
simple efforts:
Measure, Estimate, Prioritize, and Adapt.
Follow the 80-20 rule.
Make
mistakes and learn from them.
Be open to change and feedback.
Experience and
Expertise
In his book “Outliers,” Malcolm Gladwell became famous for stating
that, “10,000 hours of practice are required to become a world-class expert.” I
am not sure it is 10,000 hours, but my experience indicates that experience and expertise are probably the
most important factors in achieving success. That doesn’t mean you need expertise
in everything, but it does mean you need at least a hook in the field you are
pursuing. And if you know you are lacking expertise in a critical area, I
suggest hiring someone to help.
For example, right-brain creatives typically don’t like
financial analysis so it’s usually a good idea for them to hire an accountant.
In the last couple of weeks, I have had clients with seemingly great ideas and
passion who overestimated their gross margins by 10-20%. They simply didn’t do
the detailed financial work and didn’t understand that those numbers could make
a huge difference between profit and loss.
This argument is in no way intended to ignore the
importance of passion, commitment, innovation, testing, and even mistake making.
I’m just saying that both individuals and organizations need to realistically
assess the risk of failure and the reward of success. Expertise and experience
are critical for accurately evaluating opportunities and new innovations.
Risk Evaluation
Are all of the features of a decision understood?
Do you know the probability of reward, the amount of the reward, and the value
of the reward? For example, what are the goals of your efforts? My clients are
usually small businesses who need to make a profit and earn a living. Thus,
they frequently pursue less risk.
In contrast, venture capital firms are
frequently pursuing growth and worry whether the enterprise will be large
enough to generate large returns. Therefore, they expect a certain amount of
loss as well as some lost investments in order to generate large growth and
profits in other areas.
Analytics Versus
Intuition
The increased use of analytics over
intuition has been significant in improving the understanding and results of
decision-making. This shift was greatly influenced by the growth and confidence
in behavioral economics fostered by authors like Daniel Hahnemann, Richard
Thaler, and Michael Lewis. While there are no quick and simple resolutions,
there are a few simple rules to improve the decision process using both
analytics and intuition.
Analytics is simply the increased
use of research, models, probability, risk, numbers, and analysis to improve
decision-making. In some cases, it has proved to be a valuable tool to
understand and improve decisions or simply validate prior intuition—particularly
where there is plenty of stability and historical data. For example, I have helped
several of my clients improve their businesses by focus on the 20 percent of customers
or products, which we know, statistically, accounts for 80 percent of their sales.
Here are some simple
guidelines to help manage decision making dilemmas:
Understand goals,
tasks, and complexity. For example, the more uncertainty and unclear
information, the more you need to rely on intuition.
Integrate the proper
role of expertise. If you have complex tasks that require diverse resources,
incorporate collaboration. If you have standout experts with extensive
experience rely on their abilities. For example, I am always fascinated how
surgeons and lawyers delegate tasks to paralegals and surgical nurses.
Test, measure, and
adapt. Gather information, confirm ideas, adapt and improve winning ideas.
Incorporate risk to
evaluate the potential and results of success.
Don’t be afraid to
follow your passion, commitment, and instincts.
Take a break. We are
frequently too consumed and stressed with our tasks. We don’t take time to
incorporate efforts like training, casual lunches, social events, new ideas,
reading, and informal meetings into our routines.
The goal is really to find a balance between group decision making and individual efforts so you don’t wind up with a camel when you wanted a horse. Recognize when analytics, facts, and research can improve your decisions. And don’t be afraid to follow your intuition when traditional answers don’t seem correct. Taking probabilities, risk, and values into consideration, you should be able to find some harmony between the two ends of the spectrum.
Imagine waking up and being excited about going to work.
What would it take for that to happen? Perhaps a boss who understood your
needs? Coworkers who were easy to collaborate with? Clear communication between
departments? A challenging, but manageable workload? Good pay, benefits, and
some fun office perks like free lunches? In short, most of us require a work
environment that supports our needs while encouraging productivity in order to
be happy and successful in our jobs. Employee satisfaction relies heavily on
company culture.
Establishing a successful culture is crucial for the overall
progress of any company and maintaining a positive atmosphere with clear
expectations is essential to facilitating employee performance. A great
strategy that lacks a supportive culture is sure to fail, while an environment
where people feel they are being given the recourses to excel will result in a
much higher success rate.
So, how do you create a successful culture?
Encourage
Communication
Surprise! When everyone is on the same page, things run more
smoothly! Set goals and develop strategies to achieve them. And then share those with your teams.
Inclusive environments foster a stronger sense of belonging, which can increase
performance.
Accept Failure
It’s inevitable. Acknowledging that fact from the beginning
enables everyone to get over their “fear” of it happening. If employees know
they will be supported when it happens, they’ll be more likely to take
(appropriate) risks, which can lead to innovation. When people are afraid, they
can’t perform to their full potential, as fear is one of the leading factors
that holds us back and prevents us from trying new things.
Look for the Positive
We’ve all felt what it’s like to work with/around negative
people—their energy sucks everyone else down to their level. We feed off of
those around us. Create an atmosphere where everyone lifts one another up. Finger
pointing and attempting to place blame is never productive. When a problem
arises, work to find a solution. When mistakes happen, look for the lesson to
be learned and grow. Everyone will be better for it. A culture that focuses on
learning from mistakes will always be more equipped to deal with them when they
arise.
Provide Assistance
Make sure employees have the resources they need to succeed.
That may mean providing additional training, one-on-one feedback, updated
equipment/software, or extending deadlines. Understand your employees’ needs
and let them know they can rely on you to back them up.
Ensure Employees Have
a Voice
This can be as simple as a suggestion box where employees can
anonymously provide feedback. The key here, however, is that all suggestions
must be thoroughly considered. Just allowing people voice their
thoughts/opinions/concerns isn’t enough. Their suggestions must be
appropriately addressed as well.
Treat People Equally
and Individually
This might sound contradictory, but it simply means that,
while everyone should be treated fairly and equally, their individual needs also
need to be taken into consideration. Some might need more supervision or verbal
encouragement while others thrive being left with complete autonomy on a
project.
Bring Back Basics
We all want to be respected, appreciated, and acknowledged.
Be kind and remember that a simple, “Thank you,” goes a long way. And don’t
forget to have some fun. Sure, it’s work, but we all like to have fun while
doing it. Have a company picnic, organize a holiday party, or join an
intramural sport with coworkers. The more you bond outside of work, the
stronger the team will be at work.
Obviously, each environment is unique and the type of
culture you cultivate will be specific to the needs of your individual
organization. While a majority of these examples are universal, it’s up to you
to decide what culture will work best for the success of your company.
Poll:
Which aspect of work
culture is most important to you?
(Please let us know
in the comments!)
Work/life balance
Benefits package (health care, PTO)
Flexible hours
Positive/likable coworkers
Feeling challenged
Dr. Bert Shlensky, president of Startup Connection ( www.startupconection.net ) is a graduate of Sloan School of Management at M.I.T. He served as the president of WestPoint Pepperell’s apparel fabrics business as well as the President & CEO of Sure Fit Products. Having provided counseling to over 2,000 clients, his focus is on working with select startups and small businesses.
Creating a business plan is a lot like forecasting the weather… those who are in charge of predicting a storm get blamed if they are not 100% accurate. The same logic applies to business planning in terms of timing, expediency, and execution. This can lead many business owners to abandon ship, rather than seeing it as an opportunity to change course. Always remember, business planning is a process.
Carl Schram, former head of the Kauffman Foundation for Entrepreneurship, recently wrote Burn the Business Plan, which echoes a similar strategy for a streamlining the planning process. Reis and Schram are mostly right to criticize excessively lengthy business plans. At Startup Connection, we argue that business plans are necessary, but that they need to flexible and dynamic (and meant primarily for yourself, not others.) As the saying goes, “If you don’t know where you are going, any road will get you there.” Making plans for others (especially venture capital firms) and following specific rules almost guarantees the process will not be useful to you. In addition, venture capital firms account for a very small segment of business financing, especially in the beginning. A business plan is not just a document to be stored on a shelf; it should establish parameters and be developed, tested, and be continuously revised. Even with a “perfect” business plan, there will be failures along the way. In particular, failing and learning from failure are critical components of the ongoing planning process. Business planning is a process.
Some Planning Suggestions
There is no cookie-cutter approach to writing a business plan. Get your ideas on paper before stressing about the organization of information. Don’t stifle yourself. Write it in your own words, as simply and concisely as possible.
Focus on your passion. A successful business plan should express why you think your business is a good idea and why you will succeed. If you need to dress it up in a suit and tie to show to investors, do that later. A business plan should be YOUR vision.
Common Parts of a Business Plan
Every business plan is different because every business is different. However, there are some common elements to consider, such as:
Mission statement
Goals
A description of products and services
Ideal customer
Analysis of the industry and your competitors
Marketing and sales tactics
Operational plans
Manufacturing and delivery logistics
Resources necessary (this includes labor, equipment, and facilities)
Financial budget
Also, focus on the components that are most important and challenging, rather than worrying about making every section perfect.
Some Further Tips
Don’t be too verbose: A formal business plan must focus on the needs of the audience and the entrepreneur. Business plans must be on point and clear. Typically, plans should be 15-30 pages. If additional details are required, put them in a short appendix.
Think it through: You might have a great idea, but have you carefully mapped out the steps you’ll need to make the business a reality? It’s worth investing your time in the planning phase to ensure you might make money in the long run.
Do your research: Investigate everything you can about your proposed business. Google and Amazon are great and easy tools to understand the market and your competition.
Be realistic about your competition: Is your product or service something people really want or need, or is it just “cool?” Why do you think people will buy your product or service?
Get feedback: Obtain as much feedback as you can from trusted friends, colleagues, nonprofit organizations, and potential investors or lenders. You’ll know when you’re done when you’ve heard the same questions and criticisms again and again. The goal is to have a good answer to almost everything that can be thrown at you.
Completing the business planning process can be challenging, but it should also be interesting, productive, and satisfying. The hardest part is developing a clear picture of the business that makes sense, is appealing to others, and provides a reasonable road map for the future. Another challenging aspect is integrating your products, services, customers, marketing, operations, management, and financial projections seamlessly together. However, these pieces should not dilute your enthusiasm to succeed.
Dr. Bert Shlensky, president of Startup Connection ( www.startupconection.net ) has an MBA and PhD from the Sloan School of Management at MIT. He served as the president of West Point Pepperell’s apparel fabrics business & President and CEO of Sure Fit Products. Having provided counseling to over 2,000 clients, he focuses on working with select start-up companies and small businesses. Call today for a free consultation, so we can use our business plan templates to take your business to the next level.
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!
Creating a business plan is a lot like forecasting the weather… those who are in charge of predicting a storm get blamed if they are not 100% accurate. The same logic applies to business planning in terms of timing, expediency, and execution. This can lead many business owners to abandon ship, rather than seeing it as an opportunity to change course. Always remember, business planning is a process.
Common Parts of a Business Plan