The last couple years have been stressful, unpredictable, and rocky, to say the least. Getting back on track and accomplishing more in 2022 is going to take dedication and focus. This may feel like a major feat after so much uncertainty, but, rather than looking at the big picture, which can often seem daunting, let’s focus in on some key areas that will jump start a successful year.
How exactly do we reduce feelings of overwhelm and hone in on specific goals? Here are some key focus areas for success in 2022.
Focus on: Simplifying
We need to take it one step at a time. Focus on individual issues and their consequences rather than the overall uncertainty and stress in the economy and within ourselves.
A corollary of focus is “keep it simple stupid.” Simple also relates to the characteristics of your forecasts. Focus on factors that really affect your business so you can understand them and estimate factors that are not as significant. For example, look at aggregate costs and administrative expenses rather than trying to forecast small items like telephone, utility, and insurance costs on a monthly basis.
Simplify, wherever possible, so you do not lose sight of the forest for the trees.
Focus on: Change
While change continues to dominate and disrupt our society, we need to focus on solutions and improvements. The most recent examples are the resurgence of COVID cases, the uncertainty of “build back better,” and inflation, which will have an unknown impact on our economy and political environment.
The post-pandemic changes 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. Read more on this topic here.
Bottom line: Forecasts are often wrong. Change is inevitable. Be prepared to be flexible.
Focus on: Technology
Despite the fluctuations, there are several tools for executing solutions and gains in 2022. These are based on the strong growth and development we’ve seen, especially in technology, over the last few years.
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. Tech stocks still represent about 50% of growth in the S&P and tech is the focus of many startup ups.
Focus on: Prioritizing
We have too many choices, but aren’t informed about our options. Cheese, beer, bread, and turkey breast are among the most over-assorted products in our lives, but stores spend little time educating customers on varieties, taste, and price of different products. Making it a priority to educate consumers about their options would improve customer satisfaction.
Additionally, prioritize providing what consumers actually want and how they want to get it. Amazon had about 22-24% of all web traffic this holiday season and, yet, we’re still talking about less successful alternatives like retail and Internet outlets.
Consider Focused versus Comprehensive solutions: There is a big difference between ensuring that you focus on key issues and trying to cover every possible variable. We frequently make decisions and develop strategies based on general goals and assumptions rather than focusing on specifics.
Prioritizing can dramatically improve results. Focus on what you are good at and pay less attention to your weaknesses. Much of analytics in sports is based on getting players to focus on the efforts with the greatest probability of success.
Focus on: Removing bias from data
Comparing forecasts to 2021, 2020, and 2019 requires some special consideration to understand the differences. The biggest problem with forecasting is bias. And, whether we admit it or not, we all have them. Analysts love to discuss mathematical formulas and measurement in affecting bias, but most bias, especially in small businesses, is simply human. Your assumptions, analysis, and data can all unknowingly affect results.
A key element of balancing expectations and probability is to develop, test, measure, and adapt.
Focus on: Risk
We are frequently afraid of risk when dealing with the rapid changes in our society and environment. The Internet, digital technology, mobile phones, Google, and Amazon are examples of technology that is transforming our lives. Relying on old methods and a “we’ve always done it that way” mentality can actually be riskier than adapting and making change.
Focus on: Process
Many planning programs put financial objectives at the end of the process. Developing financial parameters at the beginning and then revising as programs develop has many benefits. It particular, it can help you avoid pursuing poor paths and highlight opportunities.
Additionally, work to create a more open and honest culture, which encourages open communication and collaboration. Empower your staff and management, and trust your employees. This may require reassessing your current workflow and hiring process to ensure you are hiring and training good people, giving them the authority they need to do their jobs well, and understanding that they will make mistakes at times.
As we head into a year new, what are some specific areas you’d like to improve? Focus on those. Try to channel your energy into clear goals rather than on general ideas. And remember that success takes time and consistency. It may not happen overnight, but if you keep putting in the work, you will see progress.
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.
We’ve seen a multitude of change since the start of the Pandemic and it’s continuing to come full speed. Although change is inevitable, we must work to remain equipped to handle the drastic and rapid post-pandemic change we’re experiencing. To do this, there are some areas that deserve our concentrated attention.
Here are some current realities that continue to change and will require us to pay attention, keep up, and take action:
The pandemic is over 18 months old and is not yet over. It will undoubtedly have dramatic long-term effects on our society in ways such as continued stress, virtual work and school from home, vaccines, and new social norms and public regulations. Schools are already planning to cancel snow days and utilize e-Learning when weather is bad. A multitude of businesses are requiring proof of vaccination to enter—this includes restaurants, bars, sporting events, concerts, etc. We need a better understanding of issues and responses to post-pandemic change.
Technology is accelerating and will have long-term effects on our economy as well as our lifestyles. Tech companies like Facebook, Microsoft, Google, and Amazon are dominating. I just got the holiday wish list from my grandkids, which includes a new iPad and phone. Apparel, trips, and personal gifts are lagging while tech leads in sales.
Climate change, slower population growth, and more diversity are significant features of our society. Except for Africa, much of the world is getting older and experiencing slower growth than in previous decades.
Equitable policies and opportunities. The general response to ignore these and other critical issues is unacceptable. Political, social, and economic change are dramatically slow. For example, the time it has taken to adequately address discrimination against minorities and women is embarrassing. Sexual harassment policies and enforcement are decades behind where they should be. 18% of the population is Hispanic and they are virtually ignored.
Stress levels are heightened as evidenced by increased crime, suicides, shootings, drinking, and divorce.
Wealth inequality around the world is increasing and no one is doing anything to stop it. The number of billionaires increased from 1,000 to over 2,000 between 2010 and 2020. Their wealth grew from $3.7 trillion to over $8 trillion. The top 10% represent 80% of the wealth in our country making wealth and income very different things.
The most perplexing part about all of this is that there are solutions to most, if not all, of these problems. We simply refuse to adapt or we adapt too slowly. How have we done a good job in reducing things like car fatalities, drunk driving, diseases like Polio, etc. when we seem completely unable to reduce bullying, illiteracy, poverty, discrimination, gun violence, and climate change?
Not only do we need to possess the willingness to embrace change, we also need to be equipped with the tools that will enable us to react to change and create an action plan to keep up. Here are some suggestions to improve the speed and effectiveness of change and adaptation:
Consider structural changes. For example, there are numerous articles and books on how elite universities recruit and educate the top 1% with little progress in growing or expanding diversity. They also have billions of dollars in endowment and have been growing their endowment funds at rates of 20-40% per year recently and, yet, they are doing nothing to enact change.
In contrast, Mackenzie Scott (Jeff Bezos’ ex-wife who has $60 billion) is changing the structure of charitable giving. She is a disrupter in that she focuses on equality, gives only unrestricted gifts (no building or school names), and donates significant funds to lesser-known institutions, like black colleges, to help transform their entire organization.
Focus on reducing stress. The pandemic has caused significant stress and unhappiness and we need to take action to reverse some of that damage. My neighborhood has made an effort to increase socialization, warmth, and fun. They sponsor holiday parties, social event, networking meet ups, etc.
In general, friendliness, courtesy, and decency could significantly improve things. Greeting someone hello, saying please/thank you, giving hugs, checking in on neighbors, and offering to lend a hand really goes a long way.
Prioritize the 80-20 rule. In the modern business realm, it has been proven time and again that 80% of business revenues are generated by just 20% of our customers. Yet, we all continue to waste time, money, and inventory dollars on customers that bring in a lower return. This tendency frequently adds unnecessary confusion and complexity.
By focusing on the products that you know your customers want, you’re making them feel much more confident—especially when you’re selling online. Instead of finding new ways to market products that simply aren’t selling, you may be better off pivoting and concentrating solely on what is selling. If you give people what they’re searching for, they’ll buy. If you don’t, they won’t. It’s that simple.
Remember technology is king. Amazon, Google, Facebook, and Apple will survive and grow as they become even more innovative and efficient. Traditional retailers with large real estate platforms and margin requirements are at great risk. Consumers are proving to prefer the perks of working at home, fast delivery, and other convenient Internet processes. Virtual offerings will continue to expand and be utilized and, therefore, they must be integrated into our structures.
Assess your digital branding and Internet presence. If you research anything about business today, it’s obvious that Apple, Google, and Amazon are three of the most important sales and communication vehicles. Nearly everyone uses their phone and/or laptop to research as well as buy products and services. I argue that digital activities and marketing need a special place in organizations and should be a major part of programs.
Don’t forget that service, image, andculture are frequently the biggest (and often least expensive) ways for small companies to develop a brand and differentiate themselves. Some suggestions: Focus on your target market and segment your ideal customer. Be polite, listen, and then act based on what you have learned. Become a trusted resource to your prospects by providing useful information that will help them make a good choice. Build an email list and send informative mailings on a regular basis. Keep in touch with potential and existing customers.
Creating and maintaining a positive company culture is a critical component in achieving excellence and establishing a great brand. A great strategy without a supportive culture will undoubtedly fail—I’ve seen it happen too many times.
Open systems are also becoming a critical aspect of great cultures as they often reject bureaucracy, authority, and hierarchy. Open systems encourage participation, diversity, new rules, and to some extent, chaos.
The post-pandemic change we’re seeing should be viewed as a critical opportunity to improve sales, profit, and competitive positioning. While there are some technical aspects to this, it is the thinking and integration of the components that can lead to success. This should not, however, become an excuse for ignoring basic good practices. Too many small business owners are getting burned by executing untested marketing strategies—and while it can be easy to get enamored with the latest technology or fad, don’t forget the importance of factors like analysis, expertise, and experience.
The current state of the world and the rapid advancement of technology are stimulating perpetual change that cannot be ignored. But, with the right mentality and a willingness to incorporate tools that will help you successfully adapt, you can thrive in this new normal.
Dr. Bert Shlensky, President of www.startupconnection.net, offers experience, skills, and a team devoted to developing and executing winning strategies. We guide your plans for business success and unlock your profits.Our strategy includes clear steps, and over 150 free articles and templates to facilitate your efforts and guide your process. We’re here to help you get on track and stay there as you move forward. We welcome comments, suggestions, and questions. You can write us at: bshlensky@startupconnection.net or call at 914-632-6977
“Most people do not listen with the intent to understand; they listen with the intent to reply.” —Stephen R. Covey
We’ve all been guilty of it at one point or another. We get so caught up in thinking about what we’re going to say next, that we fail to listen to what is being said. But, when we don’t work on being a better listener, we rob ourselves of the opportunity to connect with others, gain valuable information, and truly engage in the conversation. So many miscommunications result from a failure to be a good listener and really take in what is being said.
Meanwhile, most of us consider ourselves to be good listeners, when in reality, we could all probably benefit from improving our listening skills. And, acknowledging that we need to be a better listener is the first step.
Here are some examples of how poor listening occurs:
There is no question that there is more communication than ever today and that listening requires more attention, and prioritization. Many of us receive some combination of more than 100 emails, 2-3 hours of TV, 3-5 hours of interaction with a computer, read numerous books, magazines, blogs, and other papers, 1-2 hours of phone conversations, 1-2 hours with social media, 1-2 hours of podcasts, 2-3 hours of meetings, and even a little social time with our family and friends. It’s a lot to take in. How much do we hear and actually take in?
There is no escaping the fact that biases affect our attitudes and perceptions of individuals and information. While it is frequently associated with demographics, it is really much more pervasive. Aware of the fact that preconceived notions (either of a person or the content being discussed) have a dramatic effect on audience members’ understanding and acceptance of information, many presenters work to actively create positive perceptions.
One of the most significant aspects affecting listening is our perception of information. For example, I believe people don’t take enough risk. How much freedom do you allow innovative people to break rules? When do you provide support versus challenging subordinates and colleagues? While there may be analytical solutions to some of these, our predispositions are frequently more important in determining how we respond. Instead of asking questions, being a better listener, and learning more about an unconventional idea, we respond with resistance, usually because it feels safer than taking a chance.
The parameters of listening are constantly changing. New tools like Zoom, targeting, social media, etc. are constantly evolving while old ones decline. I am an original AOL customer who received a disk in the mail (how many of you even remember that?) and am in panic that AOL may cease to exist. However, that creates some great opportunities for companies who want to make mostly older customers feel comfortable—that is, if they’re listening to those concerns.
People love to talk, but hate to listen. Becoming a better listener is not merely not talking (though even that is beyond most of our powers); it means taking a vigorous human interest in what is being said. You can listen like a blank wall or like a splendid auditorium where every sound comes back fuller and richer.
We frequently debate the validity, objectivity, and bias of ineffective listening. However, simply recognizing its existence and making an effort to understand how we can improve is more important. We need to consider the problems and develop solutions.
Want to be a better listener and communicator? Try some of these suggestions:
Repeat back what you think you heard. This tactic gives the speaker the chance to repeat themselves if you misheard.
Follow Internet courtesy and practices. What we hear is greatly affected by the nature of the communication. Sending inappropriate emails by mistake is not a good practice, but happens all the time. Be courteous and brief. Target the right people and sites. YouTube, Facebook, and LinkedIn have quite different audiences and impacts. Ensure recipients are getting messages rather than creating spam or complex links.
Keep things interesting. In general, the audience, whether on the Internet or in person, forms its perceptions of a presentation in the first 90 seconds. As an admitted nerd, my presentations can be a little statistic heavy, which can translate as boring. Thus, I try to improve audience reception through tools like editors, comedy, stories, and pictures.
Keep the audience comfortable. Environmental issues can be the most ignored factor in communication. Licensing agreements, celebrity endorsements, and great environments are all designed to make the audience comfortable with presentations. Frequently, seminars are created with crowded schedules to justify the expense of taking people away from work. However, a poor technical speaker at 1:30 p.m. in an over extended morning session or at 5:30 p.m. after an all day session is most likely going to be ineffective. Research shows that serving food and not being the last presenter help to improve the impression you make on your audience. At one company, we had a motto for our presentations and meetings: “FOOD WORKS.” Fruit and penny candy are truly unheralded aids in making a great presentation.
Try to create a “WIN-WIN” environment when communicating. We all know positive feedback is received more favorably and, yet, we revert to criticism, blame, and a one-upping mentality in pressure situations. We seem to follow the common TV format of adversarial commentators that frequently provide more confusion than resolution. Try to keep things positive, constructive, and remember to strive for compromise.
The value of being a better listener is undeniable. It’s a skill and skills require practice and development. Understanding the purpose, content, and importance of communication can also help you improve outcomes. Because, let’s face it, communication is the key to a lot of things including relationships, business, and success.
Dr. Bert Shlensky, President of www.startupconnection.net, offers experience, skills, and a team devoted to developing and executing winning strategies. We guide your plans for business success and unlock your profits. Our process includes clear steps, and over 150 free articles and templates to facilitate your efforts and guide your process. We’re here to help you get on track and stay there as you move forward. We welcome comments, suggestions, and questions. You can write us at: bshlensky@startupconnection.net or call at 914-632-6977
The pandemic was accompanied by an incremental increase in E-commerce. This was not a short-term blip; I believe we simply jumpstarted the inevitable. Therefore, we need to understand the strengths of E-commerce and maximize both the sales and marketing opportunities.
Let’s look at how E-commerce is changing the way consumers engage:
E-commerce sales are now estimated to be about 30-35% of retail sales. Amazon has grown from $28 billion in 2010 to almost $600 billion in 2021. Google ads grew from $28 billion in 2010 to $147 billion in 2020.
Other industries are also dramatically changing and shifting to digital systems. For example, according to Jamie Dimon from Chase, “From loans to payment systems to investing, they have done a great job in developing easy-to-use, intuitive, fast and smart products.”
Retail is facing extensive challenges. Stores are closing and many companies are shutting down altogether. They are also facing higher expenses, decreased traffic, and require higher margins than E-commerce. Personally, trips to places like Lord and Taylor, Pennies, Sears, and K-Mart are now only memories.
These changes are creating significant opportunities for E-commerce. For example:
E-commerce can be simpler and more efficient than regular retail. Delivery, security, and customer service have dramatically improved, which makes it a better experience.
Prices are generally lower as E-commerce doesn’t have the inventory, personnel, logistics, and real estate costs of a brick and mortar store. Additionally, retailers with E-commerce are struggling to balance the costs and prices of two different strategies.
Marketing for E-commerce can be quicker, more flexible, and less expensive than retail. You can quickly see results, test different programs, and compare different strategies with E-Commerce, and testing and comparisons are in their infancy.
Both marketing and sales can provide you a customer or potential customer’s name, e-mail, what they bought, what they considered, and other information. These names can provide low-cost marketing information for years.
Suppliers like Amazon and Google offer significant feedback and suggestions to improve performance and results.
E-commerce offers a much wider range of products including varieties, colors, competition, and promotions. They have a one or a few distribution centers while retailers have to stock multiple stores.
There are numerous marketing tools available including memberships, social media, e-mails, paid search, targeting, and follow up.
There is greater product information available including instructions, directions, ratings, reviews, videos, etc.
It can save time in terms of not going to a store, dealing with out of stocks and, most importantly, being available 24/7.
E-commerce offers a special advantage of being able to market to broader audiences including international and, at the same time, customizing messages to the individual.
A great opportunity for E-commerce is to improve search and information to better interact with consumers and provide a more personal experience. Research has shown that customers love personalized experiences, as it shows the business respects them enough to offer attention. It’s also proven to increase the customer conversion rate.
E-commerce can be especially beneficial to small retailers who can specialize and cater to local customers and competition.
E-commerce allows and encourages integration of sales, communication, branding, and marketing.
The potential growth of E-commerce is virtually unlimited. They key is spending the time to understand and take advantage of the opportunities. In particular, we need to better learn how to communicate with, market to, and provide assistance to the individual customer. Increasing efforts in communication, developing better E-commerce materials, and analyzing potential and results need as much attention as specific marketing efforts. Like most worthwhile endeavors, incorporating and/or improving your E-commerce offering may take some work and time to adjust, but the benefits can be a game changer for your business.
Dr. Bert Shlensky, President of StartupConnection.net, offers experience, skills, and a team devoted to developing and executing winning strategies. We guide your plans for business success and unlock your profits.Our process includes clear steps, and over 150 free articles and templates to facilitate your efforts and guide your process. We’re here to help you get on track and stay there as you move forward. We welcome comments, suggestions, and questions. You can write us at: bshlensky@startupconnection.net or call at 914-632-6977
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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