What’s an easy decision? Do they exist? Perhaps, deciding whether you want chocolate or vanilla ice cream… You have two choices, which do you prefer? Seems pretty simple and straightforward. Now, what if you’ve set a goal to eat less sugar… The scale tips toward vanilla… but, you’ve also set a goal to save money and the chocolate is on sale… Now, there’s even more to consider.
Although choosing an ice cream flavor may seem trivial, is exemplifies a very important point: The more moving pieces involved in a decision, the more difficult it is to make. And while more information enables better decisions, more variables make the decision-making process more complex.
The same applies to goal setting and measurement. We all recognize their importance, but achieving accuracy is more complicated. Setting goals and measuring used to be fairly simple as they usually related to maximizing and measuring dollars in a particular period. But, as is often the case, times change and now traditional guidelines are almost obsolete and need revision.
For example, in our growing and more complex economy, millions of workers have been leaving their jobs and pursuing other options. Work at home, lifestyle expectations, stress, and work environment are all supplementing wages as key factors in employment and turnover decisions. Additionally, climate change, current events with Russia, inflation, COVID, the stock market, politics, and diversity are all experiencing rapid changes and simultaneously impacting our economy and lifestyles.
Consequently, these societal changes also affect goal setting and measuring.
So how do we improve goal setting and measurement to make them work for us?
Consider the details surround a goal: Long-term versus short-term, quantitative versus qualitative, risk, and objective versus subjective. We also need to think about the process and complexity of setting goals. For example, do you want realistic and achievable or stretch goals? If goals are too simple, they can ignore important aspects of a situation. On the other hand, if there are too many aspects to consider, there can be a lack of focus.
Focus on key elements: Measurement has become quite complex. Ask yourself how important are the results, speed, innovation, and quality when measuring performance? For example, I believe automation has improved the speed and efficiency of many customer service processes. However, customer service and satisfaction are frequently sacrificed. How many times have we been completely frustrated with ineffective electronic customer series efforts? There is a trade off here that needs to be taken into consideration.
Make communication a priority: In most efforts and organizations there are multiple goals and demands. With so much to manage, critical issues can arise in the areas of prioritization, comparison, and measurement. Communicating goals and their measurement throughout an organization is frequently a secondary priority. Why have them if you don’t manage them?
Examine alternatives and change: Do we understand and really believe our goals? For example, nearly everyone acknowledges that the college admissions and decision processes are a mess. Measurements gathered from a broken process don’t tell us anything useful. Reevaluate a system that isn’t working and set new goals that will yield worthwhile measurements.
Get specific: We all understand the importance of goals, purpose, and direction in cultivating commitment, success, teamwork and coordination. Yet, somehow the execution often goes awry. One common reason for goals not being set correctly is that it can be a difficult process. One of the advantages of professional sports is that the goal of winning is simple and clear. It’s not always quite that simple in other businesses, but the more specific you can get, the easier it will be to execute.
Consider various angles: Short-term versus long-term goals is the best example of how goals may conflict. Much of the financial crises in 2008 resulted from short-term greed conflicting with long-term rationality. Remember to look at things from various perspectives and how time may affect progress.
Don’t forget about bias: Bias is, perhaps, the biggest culprit in unreliable results. For example, customer service surveys are notoriously designed to create positive publicity rather than fair evaluations. The purpose of measurement should never be to confirm your positive bias.
Goals and measurement need to be a tool for business improvement rather than an end in itself. Goals are not easy to develop or measure, but the process is critical to organizational success.
Set goals to motivate you and your team to grow and use measurement to genuinely gauge where you’re at and where you need improvement. Ask yourself (and answer honestly), “What am I measuring? How am I measuring? And what is the purpose of my measurement?”
Whether it’s sales, profits, service, customer satisfaction etc., reliability and measurement over time are vastly underrated!
Make goal setting a priority and communicate your goals to those involved. Be certain to understand the different needs of different situations. Use clear and simple measurement tools, and be sure to utilize the process for improvement, rather than a tool for criticism. And remember, we set goals to make progress and even if we don’t achieve what we set out to accomplish, we still end up further along than where we started. So, stay focused on your goals, make them word for you, measure your progress, and keep moving forward.
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
Have you ever asked a question only to receive the dreaded, “Because I said so,” response? This is often a phrase repeated to children, but even adults are prone to hear things like, “Because this is the way we’ve always done it.” If you’ve been on the receiving end of these statements, you know that they are never satisfactory explanations to questions. They’re a cop out—a way to evade the underlying issues and, perhaps, an unintentional admission of one’s fear of change or refusal to embrace innovation. And, that is exactly how we get stuck in patterns that don’t work within systems that are unwilling to adopt new structural paradigms—even when it’s the obvious answer.
Many people, myself included, have been writing on this topic for 5-10 years—reiterating time and again that our economy is dramatically changing and many analysts are ignoring the consequences. What is even more perplexing is that we continue to ignore some proven models of success.Several years ago, Walter Isaacson wrote in The Innovators about the impact of technology, the digital computer, and Internet revolution. These trends have only accelerated in recent years. One of the most interesting themes is the commitment, diversity, collaboration, and even friction, among diverse participants in almost every phase of the revolution, such as Jobs and Wozniak or Gates and Allen.
The results of this technological shift are evident in a comparison of stock performance of traditional companies versus newer tech companies. The stocks of P&G, I.B.M., G.E., Coca Cola, Dupont, and AT&T have DECLINED an average of 8% annually over the last 5 years. In contrast, the price growth of companies like Google, Facebook, Apple, and Amazon has increased at a rate of 24% annually. This trend is also evidenced by G.E. and other huge companies’ recent decision to dissolve their outdated structure.
To put that in perspective: investing $100,000 in the traditional companies 5 years ago, would be worth about $66,000 today. Investing $100,000 in the tech companies 5 years ago would be worth about $300,000 today.
Financial advisors also seem to be reluctant to embrace this shift. For example, much of their discussions focus on bonds versus stocks rather than tech stocks versus industrial or value stocks.
It’s really no surprise that so many businesses are failing considering both society and business refuse to recognize that old paradigms and structures are already obsolete or are well on their way. For example:
Large corporate structures (like print publications and brick and mortar retailers) are all gradual losers, or worse.
Companies as well as 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 back our economy.
With little real attention to these changing trends, the poor performance of many organizations is virtually a given.
Even more distressing is that it’s the structural paradigms of these organizations producing much of the deficient results, rather than the typical financial discussions. For instance, the long-held propositions that business advantages, like economies of scale and utilizing expertise and marketing synergies, are simply false in many cases. Rather, these and other former industry leaders are failing because of the following limitations:
Many large companies have tunnel vision, organizational constraints, etc., and ignore emerging technologies and opportunities.
They lack the flexibility to respond to the needs of the market and use outdated solutions to new problems.
They fail to allow the vision, entrepreneurship, and risk necessary to succeed, while heaping huge income growth on unproductive leaders.
In contrast, new structural paradigms are providing numerous opportunities for successful change:
The success of smaller, more innovative companies shows that many organizations should get smaller (or act smaller) in order to effectively deal with today’s environment.
Reducing layers and creating professional cultures are a start. Boards and management need to split up organizations like G.E., create spinoffs, or implement more independent groups. That may be what’s really necessary to maximize the potential of both individuals and organizations.
Large organizations say they want excellence, entrepreneurship, innovation, risk-takers, etc., but, really, they tend to encourage mediocrity. For example, short-term goals and reviews for both organizations and individuals actually inhibit the development of more positive cultural characteristics, rather than spur them on.
Testing and failure, which are critical parts of innovation, are punished more than rewarded. Even sound risk-taking is reduced because of the fear of repercussions within the organization. In short, organizations frequently ignore the advice, “you can’t score if you don’t take a shot.”
Organizations need to be open to measurement and feedback. Looking, understanding, and sharing financials, operations reports, and sales reports are the first step towards embracing new structural paradigms. Simple research studies, social media, and other devices are additional tools.
Open systems and collaboration are like winning the trifecta at the horse track. Open systems have been around for a long time but are 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.
These new structural paradigms, cooperation, smaller can be better, and open collaborative systems, offer great hope for organizations. While they rely on innovative approaches to problems, the solutions are readily available. Therefore, once we acknowledge that different strategies are needed, we can implement new tactics, provide opportunity and education, and allow our organizations to be effective.
I strenuously argue that if we do not learn to accept and accommodate innovation and deviant behavior both inside and outside of organizations, we cannot change or achieve excellence.
“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
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.
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.
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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