“If you aim for nothing, you’ll hit it every time.” These wise words from the famous author, salesman and motivational speaker, Zig Ziglar, are precisely why we must set clear, specific goals. Nearly every plan, budget, and proposal start with goal setting and establishing focus. In business, the next recommendation is to make a profit. The rest of the plan then details the programs to achieve that end.
It seems simple enough, right? However, the process of setting goals is far more complicated and can facilitate the remainder of a planning process.
A key issue in developing business and personal goals are the parameters. Even in sports, where the general goal is winning, there are complexities. For example, the goal of minor leagues is more about preparing players for the majors than winning every game. And in little league, things like development, training, participation, and teamwork can be as important as winning.
Goals also operate within the context of other needs. What are the opportunity costs of other activities? What are the costs, investment requirements, and rewards of an effort? What are the social, legal, and environmental considerations? How important are issues like innovation, time, safety, culture, and the whole group in an effort?
Here are some recommendations to consider in developing goals:
Exploring and understanding profit can add dimension to your goal setting. There is more than one description of profit. Some include: long-term profit, short-term profit, cash, present value on investment, profit before or after depreciation, interest or other factors, and expected value discounted for risk. Understanding profit and investment requirements also differ for service, retail, manufacturing, technology and other types of companies.
To compare varying goals, let’s look at small business entrepreneurs and venture capital investors. The small business entrepreneur is mostly concerned with earning enough cash to pay bills and stay in business. (If you recall, 90% of small businesses go out of business within five years.) Venture capital firms are looking at multiple investments and expecting that enough will make significant profit in a few years to more than cover the unprofitable ones. Even the venture capital business has changed dramatically in the last few years. Initial investments are smaller and for shorter periods, profit expectations are more carefully reviewed, and growth expectations are more reasonable.
Measurement is a critical aspect of goal setting. What, when, how and criteria of how we evaluate an effort are critical in decision-making and goal setting. For example, we debate the potential and impact of a recession. However, there are several different ways to measure it such as length, type, impact, etc. Measurement can also be considered from an absolute or relative perspective. In little league, showing up is frequently considered excellence. Improvement from a weak team can also be considered excellence while winning a championship is expected from the best teams. So, knowing what your measurement parameters are is key. Consider cooking, for example. We know measurement is critical, but when a recipe calls for a pinch, dash, shake, and smidgen… what exactly does that mean? It seems like only grandmothers really get it right.
Don’t forget about bias. Bias is, perhaps, the biggest culprit in distorting the development of goals. For example, when evaluating performance, profit can reduce the importance of variables like quality, customer service, logistics, etc. Bias can also cause issues because many non-quantitative goals are more difficult to measure. For example, sports teams generally focus on winning rather than development, culture, or team concept, which may be more important. Look how many teams in various sports have failed by trying to hire super stars and ignoring other requirements for winning.
Timing and time parameters are crucial. Long-term versus short-term is the most frequent difference. However, periods of time are also important. For example, the stock market has been highly volatile in recent years. 2020 and 2021 saw significant gains, 2022 saw significant losses, and 2023 appears to be regaining much of those losses. Goals will vary depending on whether you need cash immediately, are saving for your retirement, investing for inheritance, or any number of other needs and the timeline they require.
Flexibility is key. Businesses are subject to more radical change and need to build adaptable mechanisms into their processes. As we face more uncertainty and instability, we need to focus on changing and simplifying processes to reduce the risks, and our goals must align accordingly. Strategies like pivoting and develop/test/measure/adapt need to be built into our organizations.Examine alternatives and change when necessary. Reevaluate a system that isn’t working and set new goals that will yield worthwhile measurements.
Human and cultural factors must also be considered. How important are excellence and change in our processes? How much innovation effort is in our programs? How complex or detailed are our goals? And keep in mind that customer, supplier, and employee satisfaction can dramatically affect results.
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. The most frequent issue with change is insufficient support and operations. For example, excellence in quality, delivery, and customer service are even more important during periods of innovation. As change is inevitable, organizations simply need to understand their new environment and execute fundamental change.
Make goal setting a priority and communicate your goals to those involved. Be certain to understand the varying needs of different situations. Use clear and simple measurement tools, and be sure to utilize the process for improvement, rather than 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 work for you, measure your growth, 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 met someone and, after they introduced themselves, you forgot their name within seconds? Why does this happen? Why does so much information go in one ear and out the other? Are we at capacity and simply cannot retain any more data? Or are we too distracted thinking about what we’ve going to say next? Why are we not listening to each other?
Listening is key for communication and building positive relationships—both personally and professionally. When we improve listening, we improve our interpersonal connections and our collaboration skills.
When it comes to getting others to listen to you, think about how you are presenting the information and how you want it to be received. Consider factors like timing, delivery, and environment. When, where, and how are you telling someone something? In general, the audience, whether on the Internet or in person, forms perceptions of a presentation in the first 90 seconds—that gives you a small window to capture their attention and make a good impression. Environmental issues can be the most ignored factor in communication. For example, if you’re giving a presentation in a room that’s too hot or has a lot of distractions, your audience is less likely to retain what you say.
Additionally, when we engage others genuinely, they are naturally more inclined to pay attention. Too often we underestimate the power of a smile, a kind word, an honest compliment, or the smallest act of caring. The most effective tool to enhance listening that I use is the “out of the box” approach of “FOOD WORKS.” Fruit and penny candy are truly unheralded aids in making a great presentation.
Here are some specific suggestions to help improve our own listening as well as get others to effectively listen to us:
Have a clear focus especially with regard to goals. Time frame, perceptions, quantity versus quality, topic, and especially the sharing of goals can critically affect listening. Providing an outline is helpful so people can see what will be covered and can easily follow along.
Don’t ignore bias. Whether we admit it or not, we all have biases. And it’s a huge problem when it comes to listening. Analysists love to discuss mathematical formulas and measurement in affecting bias; however, most bias (especially in small businesses) is simply human. For example, our most recent experience, preferences, and desires can have a significant impact on what we hear.
Be willing to hear both sides. It’s important (and frequently imperative) to take risks in order to expand, grow, and adapt. By listening to the real benefits and potential consequences of actions, you may be willing to take more chances. Additionally, this will help you make more informed decisions overall.
Don’t assume people know what you’re talking about. For example, common business terms like Gross Profit, EBITA, Clicks, Conversions, Fixed Costs, and Investment may not be understood by some of the audience.
Be clear and concise. Simplify wherever possible and focus on factors that really affect your presentation. The audience will lose interest if the presentation is too long, complex, or poorly communicated.
Be the expert. If you’re not confident in what you’re saying, you’re more likely to communicate it wrongly or ineffectively. Make sure you know what you’re talking about.
Prioritize openness. Does the listener trust what is being said? And does it cover relevant issues? When we share information openly, we establish a sense of trust.
Actively look for ways to improve. Discuss challenges and opportunities. For example, if miscommunications are happening, find the source of the problem. Is it coming from the presenting side or the listening side? You can then implement supportive strategies.
Understand the audience and diversity. Demographics are affected by age, location, socioeconomic status, race, gender, etc. Current events have certainly affected trends for many minority groups. Staying up-to-date on your target audience, the issues they face, and their habits will help improve your awareness and communication.
Listening should always be a priority. Understanding the purpose, content, and importance of communication can help you improve outcomes. You should also consider your own listening process. The next time you catch yourself asking someone to repeat their name or find yourself zoning out during a presentation, ask yourself why? Figure out where the communication failed and learn from it. Maybe the speaker wasn’t being clear or maybe you’re someone who needs to take notes or repeat a name out loud in order to retain it. The more you understand your own communication strengths and weaknesses, the better equipped you’ll be to listen and be heard.
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. For more information, please visit our website: www.StartupConnection.net.
Imagine you’re taking a road trip. You’ve planned out your entire route. You know every highway you’re going to take and every stop you’ll make along the way. Now, imagine you’re following the directions you’ve made when suddenly there is a huge detour. A landslide is blocking the road—rocks and debris everywhere. What do you do? Forge ahead on the same dangerous path even though it would utterly ruin your car and cause you injury? No. Of course you wouldn’t do that. That would be dumb. You would find another, safer road to get to your destination successfully.
This is exactly why we need to realize that the best plans are flexible. Too many times, we create a plan and think that it’s final. But, how can something be final when you don’t know what variables will exist down the road (pun intended!)?
And yes, you do need a plan, but it needs to be dynamic and flexible so that it can adapt to changing circumstances. Long detailed business plans designed for a third party like an investor or a plan that has no flexibility are usually not productive because they are too static to be useful in a real-life scenario. A popular alternative, based on a variety of “lean startup principles,” is to skip the plan in favor of an organic plan that tests alternatives, measures, and adapts to changes in your business and the environment. Try to remember that the best plans are flexible.
A dynamic plan has some significant advantages. It allows you to examine options like a good, better, and best forecast. Dynamic plans also allow you to gain some understanding of the interaction of variables. For example, it can show you how variables like growth, marketing, operating expenses, and investment affect sales, profit, and growth. Most importantly, it encourages the exploration of alternatives rather than relying on a fixed model.
Developing a dynamic plan still requires covering traditional basics, such as:
Plans must balance the need to dream with the need to be realistic. The solution is frequently to develop backups, prepare for contingency, and accept failure. In particular, failure is often a requirement for success. Yet, we sometimes fail to recognize its value in the process of achieving success. For example, fear and uncertainty accelerate the concerns about failure. Many studies have shown that we are about twice as likely to avoid losses as pursue gains. We must listen to that little voice that whispers, “How will you know it won’t work if you don’t try?”
And, if it doesn’t work, you have more information to utilize for the next attempt.
Finally, setting clear goals is essential to an effective plan. As Mark Twain said, “If you don’t know where you are going any road will get you there.” The distinction between dynamic and focused are not contradictory. You need a concise summary of what the company is about and how it will achieve its mission. If you’re a human being living on Earth, you probably know that it’s very rare for things to go exactly as planned. Therefore, your business plan needs to focus on how your company will succeed in various circumstances. It should also define the target market, financial parameters, and define operational requirements. Understanding that the best plans are flexible will help you, and your business, succeed.
Remember, your plan is a tool—like a map—that is regularly considered, and modified when you come up against those landslides. 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: www.StartupConnection.net for more information.
Have you ever assessed your decision making process? What are the factors you take into consideration? Too often, we neglect parameters and this is a mistake. Parameters must be included in our decision making in order to improve results.
What do I mean by this? Well, understanding risk, rewards, and the importance of various issues can help guide your decision. 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!
And while that may sound daunting, it’s the way it’s always been—change is inevitable and we must embrace it. So, don’t allow fear, uncertainty, or tradition to prevent you from trying something new.
For example, here are three different well-known approaches to decision-making. Which one are you and is it working for you?
Nike’s advice: JUST DO IT!
Steve Jobs: “Because the people who are crazy enough to think they can change the world are the ones who do.”
Traditional ideology: “We have always done it that way.
Now, here are some considerations to help improve our understanding of parameters and inform how we approach decision making to get better results:
Not making a decision is a decision. If you see the right choice and fail to act on it, that’s a mistake. For example, lots of people think about quitting their jobs, but few actually do. Similarly, we talk a lot about things like health, weight loss, reducing stress, saving money, and being more supportive, but seldom do we take action.
We assume cause and effect when the relationship can be spurious. One of the oldest questions on cause and effect is the proverbial chicken and egg issue. Statistics and other details make it very easy to assume that a relationship among factors is a straight line. However, most relationships involve a variety of factors, as shown in the chart below:
Analytics can produce better results, but intuition, risk, and low probabilities can be effective. We all know the lottery is a bad bet, but some people do win. Similarly, many billionaires like Gates, Bezos, and Jobs have achieved fame by pursuing high risk and out of the box alternatives. It is the outliers that create much of the innovation, excitement, and change in our society.
Forecasting parameters can improve decision making and identify great alternatives. What are you forecasting and how will it affect your actions? For example, the pandemic has altered time perspectives in developing and analyzing forecasts. 2019, 2020, 2021, 2022, and 2023 all have different parameters and need to be considered as such.
The biggest problem with parameters can be bias. Most bias, especially in small businesses, is simply human. Your assumptions, analysis, and data can all unknowingly affect assumptions. Analysis of different age groups like millennials and baby boomers can vary simply by using different starting and ending birth years.
One crucial aspect of parameters is risk and outcome, which are greatly affected by probability and information. Predicting results where there are significant and consistent historical data can be fairly simple; however, predicting results for new programs or with little or inconsistent data requires developing educated estimates.
Beware of confirmation bias. Don’t we want to believe that our ideas are terrific, and thus, focus more on their potential for success? Of course, we do. The challenges associated with the ideas are sometimes given a smaller amount of our attention; it’s just human nature. We bias our analysis towards successes and tend to ignore negatives. One business that has benefited greatly from this concept is the casino business.
Organizations need to be open to measurement and feedback. Observing, understanding, and sharing financials, operations reports, and sales reports are the first step. A management style such as “walking around” and checking in with employees can be priceless.
At the end of the day, you can improve assumptions, results, effort, and process by simply knowing your parameters and understanding the use of analytics and intuition in your decision processes. As the saying goes, “A chain is only as strong as its weakest link.” Make sure to figure out where your weak links are as well as your strengths.
Contact us for a FREE evaluation and get an alternative perspective on your business. We’d love to help you identify ways to adapt to current trends. No one has time for BS—so we’ll cut straight to the point and answer any questions you have. Reach us at:
Dr. Bert Shlensky, President of StartupConnection.net, has an MBA and PhD from the Sloan School of Management at M.I.T. He served as the President of WestPoint Pepperell’s apparel fabrics business & President and CEO of Sure Fit Products. More than 2,000 clients have benefitted from his business acumen over the course of his long career. He now focuses on working with select startups and small businesses. Please visit our website: StartupConnection.net for more information.
We’ve all been asked the glass half empty or half full question… It’s easy to give this discussion more importance than it deserves, or even make it more complicated than it really is. The bottom line is that the question aims to determine whether someone is an optimist or a pessimist. But, what this question fails to consider is whether someone is a realist. I know people who are optimist realists and some who are pessimistic realists. Both can be effective; it’s simply a matter of approach. The commonality, though, lies in the fact that they look at things from a realistic and, often, analytic lens. And that is why they get results.
Take poker, for example. Professional betters fold about 75% of the time after seeing the first two cards. Amateurs only fold 50% of the time. This has nothing to do with whether they were optimistic or pessimistic about their chances. It has to do with understanding the game and considering statistics from a strategic perspective.
The stock market is another example where assumptions and “opinions” can be dangerous. How many stocks like WeWork, Peloton, Teladoc, and Zoom all grew based on unrealistic expectations and then crashed? In 2021, nearly every new issue is down an average of more than 50%.
Furthermore, analysis and AI are valuable and often help improve results, but we have to also consider the accuracy and validity of the analysis. For example, the pandemic has made much of the data from 2019-2021 less reliable in forecasting. Economic, political, and environmental changes can impact the assumptions and process of our analysis. Case in point: higher winds and higher water temperatures from climate change worsened the impact of Hurricane Ian. Structural changes, like the war in Ukraine, crime, and inflation, can also affect our assumptions and analysis.
Timing and circumstances should also greatly influence our perceptions and predictions. While we may understand product life cycles, we often forget how age, competition, and technology can affect our progress. For example, over 60% of advertising is over the Internet rather than traditional media. And many politicians and managers continue to serve despite waning capabilities and energy.
In general, being optimistic is frequently recommended to keep a positive attitude, understand potential, and motivate maximum efforts. And, while many issues require evaluation, there are plenty of opportunities to capitalize on optimism. The pandemic has stimulated new opportunities like working from home and virtual learning that need to be given time to reach their potential. For example, small Universities are sharing courses with other local Universities to expand the offerings available to students. These need more analysis and objective thought rather than simple opinions to have success—this is where that realism comes back in play. It’s great to be excited about good ideas, but we also need to take a realistic look at whether they are effective.
And, when it comes to decision-making and implementing new ideas, we can all afford more risk. People tend to have a pessimistic view of risk-taking. Or, they believe you need to be optimistic to benefit from risk. But, it’s really more about being realistic and evaluating results and considering alternatives. We need to recognize that the upside of many risks is much greater than the limited downside. Additionally, need to understand outcomes and accept reality. Part of that reality is that failure is always part of the process.
Other culprits that pull us away from reality include denial and bias. Denial can make us avoid potential negative outcomes or ignore facts. Bias causes us to overestimate markets, ignore competition, and not consider the issues in execution. These can be a result of our enthusiasm—we want to believe something is true because we are excited about the possibilities. This is a great example of how unchecked optimism can actually thwart our efforts.
So, how can we make sure we maintain a realistic outlook and approach?
Encourage openness. Organizations need to be open to measurement and feedback. Share financials, operations reports, and sales reports. More eyes equal more feedback. This can reduce oversight and bias.
Search alternatives. Don’t get stuck doing it one way. Try new things and see if you can do it ever better.
Discourage enablers. While experience and expertise can improve results, one of the worst strategies in our changing environment is “we have always done it this way.” It simply ignores change, alternatives, and processes. This mindset is frequently fueled by proponents who fear change and discomfort. Don’t allow people to enable this narrow-minded thinking. It’s not inclusive and not realistic.
Measure correctly. Are you in need of quantitative or qualitative measurements? On one hand, quantitative measures are simpler to document, measurable, objective, and comparable. However, we must ensure we are using the right measurements and analyzing correctly. Qualitative data can measure issues we don’t always consider and allow for intuition. However, qualitative can also be easily compromised and measure wrong factors.
In the end, whether the glass is half empty or half full doesn’t really matter as long as we can see that the glass exists and that there is more than one way to interpret how much water it holds. People will always see things differently—our education, experience, genetics, history, circumstances, and a variety of other factors influence how we view the world. Rather than arguing about the differences in our perceptions, perhaps we can discuss them and learn from each other. Together, we can expand our collective knowledge by considering the potential and opportunity that exists in our unique interpretations of data and circumstances. And with a realistic approach to analysis, and a genuine desire to pursue new, improved, and varying outcomes, we can achieve more together.
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
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.
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