Currently, everyone seems overwhelmed with stress, change, complexity, uncertainty, and disruption. The pandemic, inflation, politics, crime, and a general increase in depression are all taking a toll on us individually and as a society. With so much on our plates in the midst of all the chaos, how exactly can you improve your business?
There are a few simple strategies that can help improve your business (and your life). For starters, we could all stand to be a little nicer (to others and to ourselves) and we also must learn to reduce the stress, conflict, and uncertainty in our lives.
At Startup Connection, we’ve found that, when feeling stuck or overwhelmed, it often helps to get back to basics. We can all benefit from taking a step back and reminding ourselves of the good advice we’ve gained along the way. We hope the following suggestions challenge you, resonate with you, and help improve your business and life:
Find and maintain balance. Whether it’s passion and reality, Left Brain-Right Brain, qualitative versus quantitative, analytics versus intuition, these seemingly opposing concepts are actually more similar than different. The goal is to find balance and reduce the conflict that often permeates discussions about these ideas in order to develop a more integrated approach.
Practice more civil and positive behavior. This can have significant outcomes while being fairly simple to apply. Saying please, thank you, and asking, “How are you?” can go a long way. Ensure you understand other perspectives and alternatives, listen when others are talking, and work on remembering names and biographies. And, most importantly, be kind.
Understand goals and needs. This applies to your own goals and needs as well as those of your partner(s) in relationship (both personally and professionally). In particular, ask and learn about things like price, service, quality, and reliability in any relationship. Professional sports have done a great job adding entertainment (notice how she got a jersey in the photo) and better food to the consumer experience, which can mitigate the higher costs (and the possibility of your team losing 50% of the time).
Have clear priorities. As Lewis Carroll said, “If you don’t where you are going, any road will get you there.” Reassess and renew efforts on programs that have the most potential. But,it is equally important to eliminate unproductive efforts. Focus on what you’re good at and pay less attention to your weaknesses.
Utilize the 80-20 rule. Many operations and expert mathematicians have long promoted that 80% of sales are made up of 20% of your products. However, suppliers continue to proliferate styles, colors, sizes, and models to, presumably, serve more customers and provide more features. The tough economy has produced a great opportunity to reduce proliferation of products that just aren’t producing.
Always remember measurement. Measurement is simply the increased use of models, probability, risk, numbers, analysis, and even experience and intuition to improve decision-making. In some simple cases, it has proved to be a valuable tool to understand and improve decisions or simply validate prior intuition. The bigger the data and the more complex the circumstances, the more measuring can improve decisions.
Accept that change is accelerating and is more uncertain. Understand and incorporate change like inflation, the situation in Ukraine, changing goivernment, etc into your planning and management. Encourage out-of-the-box thinking and ideas, and avoid normal day-to-day problem solving. For example, you may develop solutions by better understanding underlying causes of issues rather than their characteristics. In other words, address the root cause and not the symptoms. One of the most significant opportunities may be understanding and reacting to demographics. The country is simply getting older, more diverse, more ethnic, and more educated.
Restructure relationships. If you communicate with partners, lots of win-win opportunities can occur. In my own experience, sharing forecasts, production plans, inventory quantities, etc. is one of the easiest and most inexpensive tools that can produce the greatest of outcomes.
Remember that failure ispart of success. Brian K. Mitchell said, “If you aren’t making mistakes, you aren’t trying hard enough.” The experiences of the following innovators best make this point:
Steve Jobs, co-founder of the original Apple Computer, was fired from the firm.
Thomas Edison, one of the greatest inventors of all time, had 10,000 failed trials with his light bulb.
Stephen Spielberg, famed movie director, went solo after being rejected three times from the University of California.
Bill Gates and Mark Zuckerberg, both college-dropouts, went on to, well you know what.
Be more open. Organizations need to be open to measurement, feedback, change, and anything else that comes along. This often starts with fostering an open culture, which includes sharing financials, operations reports, and sales reports.
Put more effort into customer service. While we always focus on product, marketing, finance, and customer service are just as critical. Remember: Anyone can put a product in a store or pictures on the Internet and attempt to sell it. It’s the differences in service that frequently differentiates businesses. Focus on expanding relationships with your ideal customers and the products they support, and give less marketing attention to declining customers and unprofitable products.
Maximize operations. Effective logistics and operations planning starts with determining key issues, understanding tradeoffs, and developing goals and standards. The recent supply shortages in diverse area like airlines, baby food, and computer chips that are crippling our economy exemplify its importance. Scheduling staff, services, and supplies correctly to meet customer needs without incurring excess expense is critical. Customers who wait or walk out of a business because of delays generate the most complaints. Reducing lead times, improving flexibility, and planning can improve effectiveness and lower costs.
There’s always room for improvement. What are some ways you’d like to improve your business? And what are you going to do to successfully accomplish those things?
Dr. Bert Shlensky, president of Startup Connection, prides himself on his ability to define what is unique about each and every business. He works closely with individuals to develop a personalized approach that targets specific areas of concern and offers solutions based on his 40+ years of experience. His expert team will address your particular needs while working to save you time and money.
If you think are you aren’t susceptible to denial, you’re in denial. It’s a difficult thing to manage, compared to simple lying, because much of denial can be unconscious and, as a result, more difficult to recognize and change. But, change we must, because denial prevents us from seeing and addressing critical issues that could greatly affect outcomes, both personally and professionally.
I find that, except for the news, we favor positive circumstances and sometimes deny challenges. We “see what we want to see” by checking the stock market or the score of the game only when we’re ahead. We look for positive weather forecasts and focus on the great things about our kids. This type of tunnel vision can make it hard to see the whole picture. It can also affect decision-making in cases where positive bias greatly alters assessments.
Psychologically, denial is a mechanism that results from the inability to cope with reality. However, there is an immutable fact about denial: it does not work as a long-term problem-solving mechanism. Reality always wins. And when it does, the next step in the process is blame, which shifts responsibility onto someone or something else. Blame eases the pain when reality bites. But, we need to take ownership of our actions and recognize that if we work to avoid bias and denial, we can often avoid having to face a harsh reality down the road.
Bias is one of the greatest deterrents of accurate scientific analysis. I also believe social bias can be more impactful than statistical. These include our preconceived perceptions and assumptions. I am always amazed that many programmed employee selection tools outperform interviews, especially in jobs requiring specific skills. Similarly, the perceptions of many presentations are established in the first minute or so.
Cultural and environmental factors also affect bias. Dress, demographics, weather, location, and culture all affect perceptions in the decision-making process. These can also be used to your advantage when talking to colleagues by increasing bonding with similar people. Whenever I meet someone who is also from the Southside of Chicago like I am, agreement on differences becomes much easier.
Denial is more prone to happen when there is more complexity and variables involved in a situation. Our brains try to counter this by attempting to create simplicity. Once we understand that this is what is happening, we can use to our advantage. For example, we all know simplicity can help decision making by prioritizing, focusing, and pursuing clear goals. On the other hand, we need to consider multiple factors like rewards, probability, environment, resources etc. in making our decisions. Here are some examples where the two strategies can be complementary:
The 80-20 rule (which states 80% of results are from 20% of effort) calls for focus to be more important than ever. Eliminating unproductive efforts is the most important aspect of the 80-20 rule.
More data, variables, and analysis are generally good, but it must be useful, valid, and correct. For example, if you are measuring an outcome, pinpoint the important factors rather than trying to measure everything. In particular, you should be careful to avoid random relationships and misinterpreting cause and effect. For instance, pre-pandemic data may be less relevant than before.
Most efforts have multiple goals like sales, growth, profit, quality, good will, satisfaction, etc. What is the priority and importance of these goals and how are you measuring them? Personally, I am always battling writing long blogs that are intellectually interesting versus short practical blogs with specific recommendations.
There are tradeoffs among innovation, experience, excellence, risk, and quality. Quite simply, the more innovation you pursue, the more trial and error. In contrast, you want experience and quality if you are doing things like open-heart surgery.
Denial reduction can also be affected by our attitudes and mood. Don’t underestimate the benefits of just taking a break or getting enough sleep in developing a more realistic approach. One of the side effects of working from home may be an endless workday and a lack of distractions, which provides no time to relax and reenergize.
Balancing simple and complex tasks can be improved by focusing on your strengths and paying less attention to your weaknesses. For example, I have a client who has the best product in the industry, but charges a little more money. She has achieved success by moderating some prices, but mostly developing messages that explain her quality difference.
Don’t underestimate intuition, which is quite different from denial. While we continually get more data to make better decisions, we should not forget our gut feelings. Someone does win the lottery and some of the best outcomes come from low probability efforts. For example, the pandemic has caused great uncertainty about 2022 and there are lots of opportunities to take a little more risk.
The use of virtual rather than rigid models can help deal with complex issues. They are easier to understand, diagnose errors, and manage multiple situations. In general, we are moving towards more flexibility in decision-making.
Openness can also facilitate avoiding denial. Organizations need to be open to measurement and feedback. Observing, understanding, and sharing financials, operations reports, and sales reports are the first step. Simple research tools that social media can provide can be used regularly. A management style such as the “walk around” and asking simply, “how are you doing, is there anything you need?” can be priceless. Look for alternatives and ‘what if’ discussions.
We all experience denial, but it is our responsibility to admit when we’re allowing our own biases to influence us or giving in to our brain’s desire to simplify complex issues. Therefore, we must constantly work to develop safeguards that will help recognize, test, and avoid denial. Because when we can see the full picture clearly, we are able to react and respond in the most effective way.
When I started this article a few weeks ago, I thought things were getting less stressful with COVID starting to reduce and the economy booming. Since then, the Ukraine situation has escalated, inflation has increased, and stress seems to be rising again. All of this is a reminder that continual change seems more permanent, and we don’t necessarily know what it is or what it will be. Our strategy should focus on being flexible and preparing for whatever might happen.
For example, my and others stock portfolios dramatically increased between 2019 and 2021 by investing in high profile tech stocks like Amazon. In 2022, those and many other tech stocks are dramatically down. Thus, I am learning to diversify.
Similarly, things like COVID, mask mandates, going to back to work, entertainment, and restaurant businesses are experiencing continued uncertainty rather than a straight return to normality. In contrast, kids seem to be going back to school normally.
The most significant aspect of all of this continual change is increased stress and depression. While many of us experience the roller coaster effects of uncertainty every day, an increase in mental illness, drinking, suicides, and crime point to more long-term and serious implications.
So, what do we do? I recommend understanding some certainties, watching change, and developing more flexible strategies.
Some certainties:
There are new structural trends that are becoming embedded in our culture. While myself and others often discuss them, they need to be given more consideration in our strategies and programs. These include:
Income inequality continues to increase.
Technology continues to boom.
Bureaucracies continue to be less effective.
Some changes to watch:
The economy keeps growing.
Labor will continue to be tight.
These changes are producing inflation, which has not been significant for over a decade.
Ways to implement flexibility:
Review and measure your programs on a more regular basis. In particular, evaluate the potential of alternative strategies, such as Internet versus retail.
Allocate some of your time and financial resources to developing and evaluating new programs.
Understand and implement programs to better manage changes like work from home, revived entertainment and networking, school, and diversity.
While change and its uncertainty are increasing, we need to give even more attention to proven best practices. These include:
Utilize technology. It’s not going away. And, it can streamline many of your processes.
Diversify everything: portfolios, employees, your skill-set, etc. We can’t continue living in our own little bubbles. Diversifying also exposes you to more opportunities for return.
Be prepared to adapt quickly. Change is a constant and it’s happening rapidly these days. Don’t get left behind because you’re unprepared, or even worse, unwilling to change.
Prioritize the 80-20 rule. It has been proven time and again that 80% of business revenues are generated by just 20% of our customers. Yet, we all continue to waste time, money, and inventory dollars on customers that bring in a lower return. This tendency frequently adds unnecessary confusion and complexity.
Focus on service, image, andculture. These are frequently the biggest (and often least expensive) ways for small companies to develop a brand and differentiate themselves. Something to consider: In the current social climate, people are more inclined to connect with a brand or buy from a company that is aligned with a good cause and/or participates in charitable giving.
Consider structural changes. Open systems in particular have a number of benefits including more effective problem solving, leadership, communication, and planning. It might be time to reevaluate how your company functions on a structural level and whether or not it’s producing the results you want.
It always seems that as soon as we think things are “settling down” and we’re falling into a groove, that’s when we’re thrown a curve ball. This is because we’re utilizing a mindset that craves the comfort of consistency and reliability. We need to shift our mindset to one that expects change because, while none of us can predict the future, we can, with certainty, rely on change. This might make you feel uneasy, but know that we are all in the same boat. Try to remember that staying flexible will make adapting easier. And, implementing sound, proven strategies will not only set you up for success, but put you in a position to effectively and efficiently change with change.
Dr. Bert Shlensky, President of www.startupconnection.net, offers experience, skills, and a team devoted to developing and executing winning strategies. We guide your plans for business success and unlock your profits.Our strategy includes clear steps, and over 150 free articles and templates to facilitate your efforts and guide your process. We’re here to help you get on track and stay there as you move forward.
We welcome comments, suggestions, and questions. You can write us at: bshlensky@startupconnection.net or call at 914-632-6977
We’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
Success is affected by a variety of factors. Sure, people get lucky and win the lottery while other people spend years focusing on excellence and perfecting their talents without ever catching a break… But, when it comes down to it, most of us usually need a mixture of excellence and luck to succeed.
Not surprisingly, circumstances also affect success. Last year, the pandemic left millions of workers unemployed whereas, this year, many employers can’t find workers. Was the loss of jobs simply “bad luck?” Is the inability to find workers due to a lack of excellence? It’s difficult to say when circumstances are not black and white if it was due to excellence or luck.
In contrast, many efforts like sports and skilled trades require a certain level of excellence to succeed. The application process for elite colleges provides a good example of this. Hundreds of thousands of students with excellent grades, test scores, and experiences apply to the top universities. Many of these universities admit only 3-5% of the applicants. Thus, like many efforts, there is a level of excellence required to participate, but luck can play a part in the final selection process.
So, how do we change our efforts to develop better chances of success?
When it comes to luck, there are lots of ways to improve your chances:
TRY. As Wayne Gretzky said, “Only one thing is ever guaranteed, that is that you will definitely not achieve the goal if you don’t take the shot.” So, buying more lottery tickets or applying to more schools can improve your chances!
Understand your environment. This can include the economy, culture, demographics, etc. You clearly have better chances of succeeding in today’s environment than during the pandemic. Women and minorities are also gaining more employment opportunities than in the past.
Look at more alternatives. The discussion should not be retail versus E-commerce, but how to maximize both. Outsourcing and expert resources should be regular considerations. Automation and the development of inexpensive accounting, inventory, and financial tools can create significant improvements.
Prioritize. This is a critical tool to improve what we perceive as luck. Using the 80-20 rule, eliminating ineffective programs, and focusing on winning results can all benefit effectiveness. For example, I am always amazed at the time and emotion we spend caring about sports teams that have no chance of winning.
In general, there is more potential in improving excellence and effectiveness rather than focusing on luck. Some ways to boost excellence:
Find what you do best. Walt Disney once said, “Do what you do so well that they will want to see it again and bring their friends.” This is one of the best mantras for excellence. Do I (and does our team) have a sense of pride and passion for our efforts?
Spend more time reviewing the processes of change versus excellence. The debate of pursuing improved excellence versus change is affected by a number of issues. We need to understand how problems affected by goals versus tactics can require different solutions. Here are some examples where organizations simply need to understand their new environment and execute better:
Demographics: The world is simply getting older and more ethnically diverse. For example, minority births represent more than 50% of current U.S. births.
Digital transformation: Businesses need to change rather than just execute. Opportunities like the cloud, Google, CRM systems, digital phones, apps, etc. are simply changing the processes, costs, and marketing of business. Amazon and other online retailers are revolutionizing the need for traditional brick and mortar stores. Similarly, sharing sites like Uber and Airbnb are revolutionizing their industries.
Adapt and fully implement change. Businesses are subject to more radical change and need to build mechanisms into their processes. While we will face more uncertainty and instability, we need to focus on changing and simplifying processes to reduce the risks. Strategies like pivoting and develop/test/measure/adapt need to be built into our organizations.
Focus on your customers. Are you satisfying their product, service, and value needs? For example, many companies have improved results by setting a goal of exceeding rather than just meeting customer needs.
Develop a stronger pricing strategy. There are numerous tools to improve results without deteriorating your brand. Packaging efforts like bundling and unbundling, quantities, timing, quality, the Internet, and service are all elements that should be part of pricing strategies. For example, Costco and Four Seasons Hotels follow quite different, but successful value strategies.
Set goals and measure results. Focus on judgement measures as well as quantitative. We must have greater awareness of what, how, and why we are measuring. In particular, it is sometimes easier to measure activity (visits, clicks, customers) than results (sales, conversions, and profits).
Pay attention to how bias and prejudice affect decisions. Last year, everyone criticized the NBA for not hiring black coaches. This year, most of the hiring changes were black. The best part was that race did not seem to be a part of the process.
Excellence and luck are both important for success. They need to be understood and managed rather than viewed as excuses. Understanding the risk, the rewards, and the role experience and skill play in our decisions can improve outcomes. Don’t allow fear, uncertainty, or tradition to lower your potential and prevent you from trying something new.
Everyone’s situation is different—you may start with a little luck and need to focus on excellence or you may be at the top of your game, but just can’t catch a break. Wherever you find yourself, take a step back and look at what you’re working with—what do you need more of? Excellence or Luck? And what will you do to obtain it?
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 and President & CEO of Sure Fit Products. More than 2,000 clients have benefitted from his business acumen over the course of his long career. He now focuses on working with select startups and small businesses. For more information, please visit our website: https://www.startupconnection.net/
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!
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