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.
The word “uncertain” doesn’t usually give us much hope. It implies instability, insecurity, and vulnerability—all things most of us try to avoid. But, perhaps, we can find a way to embrace uncertainty and find a way to make it work in our favor.
As we forge ahead into 2021, there will certainly be a significant amount uncertainty. Generally, we try to predict future trends based on recent past events. However, 2020 had such immense disruption that it is almost useless to use it as a base. Many argue that this uncertainty causes pessimism and lowers expectations. However, I argue we need to embrace uncertainty, as it creates opportunities and should incite positive expectations.
Why? Well, let’s take a look at the following paragraph describing American economic trends: “Despite this prosperity, major shifts were occurring in American business and the workforce. Preexisting corporations were merging and becoming larger, more powerful conglomerates. Consumers increasingly were doing their shopping at discount chain stores and their dining at inexpensive fast-food restaurants, leading to a decrease in the number of single-proprietor businesses. Meanwhile, manufacturers were relocating from the Northeast and Midwest to nonunion Southern states, taking jobs with them and robbing industrial cities of their vitality. Manufacturers also were opening factories in foreign countries to take further advantage of cheap labor. These shifts led to a decline in the power of unions.” (The 1960s Business and the Economy: Overview | Encyclopedia.com)
While this could describe much of today’s economy, it’s actually a description of the 1960s. It shows progress after disruption and it’s arguable that the 1960s had even more disruption than we have currently (consider the assassinations, civil rights, wars, and general social change). After major turmoil, we still achieved more growth, technological improvements, and social change than we’ve seen today. I believe that the stress we’re currently experiencing as a country could produce the same excitement that we saw in the 60s. On the other hand, it may be difficult to replicate Kennedy, the Beatles, a moon launch, the computer explosion, Martin Luther King Jr., and some of the other revolutionary changes that took place during that decade. But, history repeats itself…
And, historically, change usually occurs after disruption (and we have most definitely experienced a lot of that). In my own experience with corporate turnarounds, it’s much easier to motivate, innovate, and develop collaboration in troubled or changing organizations than within those whose culture is based on the closed-minded rule of “we’ve always done it this way.” It’s amazing how many individuals and organizations have incorporated new efforts like E-commerce, work-from-home, Zoom, etc. in order to adapt to the times and, as a result, have actually improved their results.
While we tend to focus on the negatives, there are many circumstances that should create a more positive environment if we learn to embrace uncertainty. The most significant may be the coronavirus. I suggest we focus our planning on the potential of the vaccine by spring or summer more than the tragic experiences of today. In other words, rather than just worrying about the possibility of shutting down in the near future, we should be adopting a mindset of: How do we keep a business viable today in order to thrive in the fall? How do we learn to embrace uncertainty?
I recommend focusing on these three areas that create significant opportunities for positive thinking: technology, expectations, and analytics.
While we seem to constantly advocate for technology, I think we underestimate it. For example, financial advisors continue to advocate balanced portfolios with traditional companies and bonds, but here’s the reality:
In 2016, if you had invested $10,000 in each of P&G, G.E., G.M, and Exxon (all among the leading companies of the day), it would be worth $35,000 or a loss of about $5000. If you had invested the same amount in Amazon, Google, Facebook and Microsoft, it would be worth $169,000 or a gain of about $139,000. If you had invested the $40,000 in 3% bonds, it would be worth about $46,000 or a gain of about $6,000. Yet, advisors tout Exxon as a great opportunity for 2021 despite the growth in electric cars, energy saving efforts, and reduced energy consumption.
Pay attention to areas like E-commerce, A.I., infrastructure, medical research, etc. These will produce dramatic opportunities for growth and investment.
Positive Expectations are a critical cause of growth and success. Venture capital, increased risk, and positive thinking can produce dramatic results. Low interest rates and inflation have had a huge impact on reducing actual risk. My favorite musical has always been My Fair Lady because of the Pygmalion effect, which infers that having positive expectations leads to enhanced performance, which results in a higher probability of success. The implication is that confidence and energy will increase if we believe in ourselves. On the other hand, a negative self-perception results in a significantly lower chance of succeeding. What we think we’re capable of, therefore, basically becomes a self-fulfilling prophecy.
Technology and expectations can be enhanced with improved measurement and analysis. Some simple ways to implement analytics: review goals, probability, risk, and measurement. Basically, ask yourself how you’re doing and where you can improve.
More advanced analysis, testing, and measurement may include creating more dynamic and interactive efforts, which can boost the development of strategies. Allowing for failure and considering alternatives can also be useful. Incorporating operations, customer service, branding, and pricing in decision making can create new, successful approaches. Accept this fact now: Mistakes will occur. So what? Learn from them and move on. Mistakes are only bad if you keep making the same ones.
So, you see, positive expectations can have a dramatic impact on success. Yes, there is uncertainty ahead, but when has there ever been zero uncertainty? A feeling of security at any given moment doesn’t actually equate to certainty. We can’t predict the future and we don’t know what tomorrow holds. There will always be uncertainty, so embrace uncertainty and trust that the “unknown” is where possibility lives. Facing unexpected change is the fastest way to determine if you’re a pessimist or an optimist. What will you be? A defeatist or an opportunist? Why not try expecting greatness? Expect it from yourself, from others, and from the universe. Because when you expect it, it’s easier to find.
Please visit our website www.startupconection.net to book a Free Session in which we can help you develop an action plan that will evaluate potential and risk. We always discuss process, expected outcomes, and cost before you make any commitment.
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.
“The 1960s Business And The Economy: Overview.” Encyclopedia.com, www.encyclopedia.com/social-sciences/culture-magazines/1960s-business-and-economy-overview.
“Business proposals and applications? Yay!” is probably something you’ve never thought. They’re time consuming, tedious, and, very often, frustrating. Whether you’re writing and sending or receiving and reading, there is a better process to write better proposals that we can all implement to make everyone’s life easier.
On one hand technology has made it easier to write, submit, and receive multiple proposals. However, this also increases the number of unqualified proposals and puts more demand on readers. For example, if I post about a job opening (even with specific qualifications), I get hundreds of replies. While some are excellent, I can tell the majority just copy and pasted a formatted response. I mean, why not? It only takes a few seconds to respond that way and MAYBE you have a shot…
I argue, however, that our current process of writing and receiving proposals and applications has simply not kept up with the technology of generating them. The most difficult issue is unqualified applicants. In many cases, job descriptions fail to include basic requirements like location, full or part-time, skills needed, and education/experience requirements. When they do provide specifics, many applicants ignore them or simply don’t read thoroughly. Because it’s easy to click and send, we end up wasting each other’s time.
The process to write better proposals is made even more complicated due to mistakes and carelessness. Here are some examples and ways to avoid these issues:
I have received proposals that I can tell are copied and pasted because they have other client’s names on them. Huge red flag there. If you’re the person sending this: Read things before you send them. It looks highly unprofessional. If you’re the person receiving this, it’s probably a waste of time to consider it. Has this person really read the description of what you need if they can’t even take a minute to look over their response?
Fees are often confusing and/or misleading in the same letter. In particular, refund information is frequently contradictory. These are usually settled, but why not avoid the confusion to begin with by taking the time to proofread?
Applications that show little awareness that they have read requirements or the nature of the request are annoying. Make sure to address the specifics. Details are important and stand out to someone who is choosing between various applications.
Too many details can be overwhelming. For instance, pages of legal or unnecessary information often clutter up a proposal. While things like payment conditions and adhering to laws are appropriate, much of the rest is simply irrelevant. Packets are often sent out that include a broad range of information that isn’t applicable to everyone. For example, if a job is remote, don’t send pages about in-house rules/expectations. Be relevant.
Additionally, proposals need to meet clients’ needs and goals. Things you should consider and/or address in your proposal: Are you truly qualified to provide what is needed? What are the technical versus creative aspects of a request and how will you approach each? What kind of budget is available? When is the deadline? Is it part-time or full-time? Is it a one-time project or ongoing relationship? How much of the request is analysis and understanding versus established solutions? Why are you right for this job? What skills or experience makes you stand out from other applicants?
While going through proposals, the first thing I do to reduce the number of applicants is to eliminate all that lack the experience and skills I requested. I also get rid of the ones with low fees—you get what you pay for and you don’t want a plumber when you need an electrician.
The process of writing and receiving proposals can be time consuming, inefficient, and produce mediocre results. If we make concentrated efforts to improve the process in order to write better proposals, the finished product will be more successful. Before submitting a proposal, ask yourself: Do I understand the goals and requirements? Do I have the experience and qualifications requested? Have I expressed all of this clearly in the proposal? If you can answer yes to all of these, submit away! And remember: make it personal—to them and their needs as well as to yourself. After all, they are hiring YOU. So, highlight what makes you special and how your unique talents are the best fit to execute their needs.
Bert Shlensky, president of Startup Connection is a graduate of Sloan School of Management at M.I.T. He served as president of WestPoint Pepperell’s apparel fabrics business as well as President & CEO of Sure Fit Products. Having provided counseling to over 2,000 clients, he now focuses on working with select startups and small businesses.
Just go for it? Really? Yes, really. Sometimes you need to downplay cautions, history, probabilities, and all the other excuses standing in your way. There will always be reasons to hesitate on any decision, but the bottom line is: You can prepare all you want, but you’ll never be 100% prepared.
While observing organizations, I consistently find that while skills, finance resources, competition, marketing, and operations are critical, it’s actually the intangibles that often make the difference. For example, culture, expectations, and excellence greatly affect success more than we acknowledge.
The world is and will always be ever-changing. So, we should accept more uncertainty and take more chances. Jobs, Bezos, Gates, Zuckerberg, etc. all took incredible risk in order to succeed. Should you go for it? Consider this example of alternatives:
Accepting a $100,000/year job with reasonable certainty of continuity versus embarking on an entrepreneurial venture with the potential of being a multi-millionaire and achieving your dream career. If you’re considering the practical probabilities, risks, and potential of these choices, you’ve ignored the argument to go with your intuition, gut, and passion. And so many of us ignore these things naturally because we were taught to analyze excessively and rely heavily on numbers and statistics. But, in many cases, knowing and calculating an expected value actually has more traps than virtue. For instance, you limit yourself by relying on a projected number and, therefore, may disregard solutions and strategies that could have even greater potential.
It is my belief that we don’t choose passion enough. However, there are several factors that actually make the entrepreneurial path more desirable: 1) you can take a job any time 2) you’ll gain great experience from the entrepreneurial endeavor 3) you’ll probably suffer fewer losses than expected. For example, most young people will experience several jobs changes before they’re 30 anyway… So, why not take some risk pursuing a dream? Go for it!
Passion also acts as an important incentive, which can result in success. Don’t underestimate it! Many experts argue that we achieve only a small portion of our potential because we’re stuck in boring, unsatisfying, and dead-end positions. I have many colleagues who remain in dying industries (like retail) and have suffered for years. They’re stuck in declining companies that have failed to adapt to emerging trends like E-commerce, logistics, and operations. But, what could we achieve if we were able to escape those soul-sucking jobs? As Sheryl Sandberg said, “Consider what you would do if you weren’t afraid.”
So, you’ve decided to “Go For It.” Now what?
Establish successful parameters. We frequently underestimate our denial and overestimate perceived barriers. For example, the pandemic is clearly changing parameters and we need to adapt rather than wait for things to return to the way they were. The entertainment industry, energy companies, work at home options, and urban real estate are all areas that are undergoing dramatic change and will permanently alter the economy as well as our lifestyles. Additionally, technology, E-commerce, productivity improvements, and Zoom are opening the door for more opportunities. Use these changes to your advantage.
Consider social factors. Income inequality, partisanship, racial equality, and diversity are among the social topics that are changing our culture, practices, and awareness. Similarly, the aging and minority populations in our country are creating dramatic shifts in our society. We simply spend too much time on partisan arguments about these issues rather than developing solutions and maximizing opportunities.
Encourage positive change. For example, women are fighting for equal opportunities and treatment. This requires some much-needed cultural adjustments as well as some operational changes like creating proportional bathrooms in sports stadiums. Additionally, working from home is enabling many parents to fill both work and parent duties. An important and needed change is actively recognizing that women have been held back and working to maximize their potential.
Accept failure. (But, don’t quit!) Mistakes are inevitable. Edison may have said it best, “Many of life’s failures are people who did not realize how close they were to success when they gave up.”
Look for the positive and be the positive. We’ve all felt what it’s like to work with/around negative people—their energy sucks everyone else down to their level. We feed off of those around us. Create an atmosphere where everyone lifts one another up. When a problem arises, work together to find a solution. When mistakes happen, look for the lesson to be learned and grow. Everyone will be better for it. A structure that focuses on learning from mistakes will always be more equipped to deal with them when they arise.
Support risk taking. If we know we have support, we are more likely to take (appropriate) risks, which can lead to innovation. When people are afraid, they can’t perform to their full potential. Fear is one of the leading factors that holds us back and prevents us from trying new things.
Focus on collaboration. Make sure the organization has the resources it needs to succeed. That may mean providing additional training, one-on-one feedback, updated equipment/software, or extending deadlines. Understand your organization’s needs and let employees know that they can rely on you to back them up.
Treat people equally and individually. This might sound contradictory, but it simply means that, while everyone should be treated fairly and equally, each person’s individual needs must also be taken into consideration. Some might require more supervision or verbal encouragement while others thrive being left with complete autonomy on a project.
“Going for it” does require a different perspective—you must look to the future and not the past. Here are three different examples that illustrate this idea: 1) Wayne Gretzky was a great hockey player who revolutionized the game. One of his contributions was Gretzky’s rule, which states that you skate to where the puck is about to go, rather than where it’s been. 2) Xerox developed the personal computer in the 1970s, but dropped it when they didn’t see any future. Steve Jobs, who bought the technology for almost nothing, toured the facility in 1979 and presumably hopped around and yelled, “What is going on here? You’re sitting on a gold mine! Why aren’t you doing something with this technology? You could change the world!” 3) Prior to Jobs’ revelation, Moore’s Law was created, which states that operating circuits could double their performance every year. That forecast (which was true for decades) allowed the computer industry to shrink all its components and increase performance annually to plan for new developments on the basis of that expectation.
Think about this: What’s the point of a band covering a song if they don’t change it up and put their own spin on it? So, I suggest: Look at what is, but find a way to see beyond that and run with it. Robert Kennedy’s paraphrasing of a George Bernard Shaw quote is quite fitting: “There are those that look at things the way they are, and ask why? I dream of things that never were, and ask why not?” And I ask: Which will you be?
Dr. Bert Shlensky, president of Startup Connection (www.startupconection.net) is a graduate of Sloan School of Management at M.I.T. He served as the president of WestPoint Pepperell’s apparel fabrics business as well as the President & CEO of Sure Fit Products. Having provided counseling to over 2,000 clients, he now focuses on working with select startups and small businesses.
Risk is a critical part of every decision. And, frankly, I think we all need more of it. We tend to think of risk as a taboo concept and it’s really not—once you understand it.
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In order to benefit from risk, you need to define what risk is to you. Some people view risk as the “potential for harm or hazard” (think bungee jumping). I view risk as an “uncertain circumstance in which one manages to maximize the gains.” But, how do you maximize the probability of success?
Here are some key parameters that affect risk-based decisions:
Consider conditions. For example, you have almost certain probability that, in general, October will be cooler than September. However, forecasting a certain day adds risk and uncertainty.
Reduce risk where you can to allow even more risk in other areas. For example, more analytics in sports is creating opportunities to assess strengths/weaknesses and create new winning strategies. It has enabled athletes to take more three-point shots, hit more home runs and longer golf drives, and score more touchdowns. Similarly, surfers used to ride 29-30 waves and now they are comfortable in 50 to 80-foot waves. Jet Ski rescues, inflatable vests, and leashes are among the tools that reduce uncertainty and increase potential.
Know the value and probability of the reward. Winning the lottery has an extremely high reward, but also has low probability. Purchasing investment bonds has lower return than buying stocks, but the risk and volatility of buying stocks is higher.
Value is also affected by the law of diminishing returns, which states that: as the input or value increases, the incremental changes become less important. It is easily summarized by the old saying, “Too many cooks spoil the broth.” Other examples include adding superfluous benefits to an offer, endless presentations, annoying excessive service, or just making the reward dramatically above what is needed or desired. Let’s say you love pie, but only have it once in a while as a treat. In this instance, the value is higher. But, if you eat it every day, it becomes less special and the value decreases. The same goes for a visit with your in-laws: Once a month is good, one a week might be less good, and every day might really be pushing it…
Understand the perceived importance of the reward. People generally regret losses more than they appreciate gains—and that is a key factor to consider when making any decision. When choosing a college to attend, decisions depend on area of course study, school size, location, tuition, the school’s reputation, etc. Are some of these factors more important than others? It varies depending on the individual.
The benefits from risk are a result of integrating the above examples to maximize results. Let’s look at the game of craps as an example: When you roll two dice, there is over a 40% probability you will roll a 6, 7, or 8 and about a 6% probability you will roll a 2 or a 12. So, if you’re placing a bet, knowing the odds (i.e. the probability of the reward) will reduce the risk. Betting is based on your willingness to risk in order to earn higher or lower rewards. The most forgotten aspect of craps (and all betting, for that matter) is that, over the long run, the house wins which is why casinos are so profitable.
Risk needs to managed rather than feared. Understanding the risk, the rewards, and the importance of each can help you improve outcomes. Don’t allow fear, uncertainty, or tradition to lower your potential and prevent you from trying something new. Only those who dare to risk going too far can find out how far one can go.
Key factors to consider to increase the benefits from risk:
Understand all the information. Knowing background, probabilities, and parameters can greatly enhance outcomes. For instance, investment decisions are greatly influenced by history and trends. However, because there is so much change due to the pandemic, the risk is now more volatile and opportunistic. Knowing the circumstances around your decisions is key.
Psychology. Assessing risk has a number of psychological constraints: a) People tend to take more risks to win back losses and less risks to follow up on winnings. b) Marketers love to push fear. When you are buying a car, appliance etc., they push its safety, reliability, and excellence. After you commit, they try selling a warranty. They induce fear by citing all the things that can go wrong. c) We overestimate our skills and luck. Tons of profits are made at casinos and in sports betting based on countless people believing that they can beat the odds.
Think about your decisions and the outcomes. We often perceive decisions as win-lose situations where one-party wins and another loses, but there are different types of decisions. Changing that mentality to “win-win” can have dramatic benefits and we tend to underestimate the opportunities we have to achieve this. For example, who would have believed decades ago that the mergers of Vietnam and Germany would be so successful? So, when making a choice, brainstorm ways to maximize benefits all around.
Rethink your strategy: Zero sum game versus non zero-sum game. Which are you employing? The best negotiations result in both parties winning. This takes collaboration, assessing varying (or even opposing) goals, and increasing the metaphorical “pie.” In particular, try to understand what is important and unimportant for each party involved. For example, many traditional retailers viewed online shopping as a liability in terms of disrupting their regular business. Now, they’re viewing it as a savior, recognizing it’s a safe and effective way to meet the needs of their consumers.
Risk mitigation. The best, simplest, inexpensive, and most effective way to mitigate risk is to gather more information. The more you know about making a decision, the less risk it will involve. Other tools include: insurance, diversification, and leverage. One of the challenges of mitigation is that people often use it to take even more risk and that defeats the purpose.
Listen to your gut. Sometimes you just have to ignore some of the information and go for it. We tend to overthink things or we let fear stop us from taking risks, but there is no gain without trying and no reward without risk. If your intuition is telling you something, it’s usually worth listening.
Risk needs to managed rather than feared. Understanding the risk, the rewards, and the importance of each can help you improve outcomes. Don’t allow fear, uncertainty, or tradition to lower your potential and prevent you from trying something new. Only those who dare to risk going too far can find out how far one can go.
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When you want to stand out, reach out to Bert for the tools that will build your “sticky” brand. My focus is on understanding and analyzing your dilemmas and challenges, so your company becomes profitable faster.
Call (914) 632-6977 or email me at bshlensky@startupconnection.net. Don’t leave without signing up for our useful free eBook!
Feeling stumped or overwhelmed? Contact Bert at (914) 632-6977 or Email to start the process. Thanks!
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When you want to stand out, reach out to Bert for the tools that will build your “sticky” brand. My focus is on understanding and analyzing your dilemmas and challenges, so your company becomes profitable faster.
Call (914) 632-6977 or email me at bshlensky@startupconnection.net. Don’t leave without signing up for our useful free eBook!
Feeling stumped or overwhelmed? Contact Bert at (914) 632-6977 or Email to start the process. Thanks!
![[while reading "Economic News" at a news stand]
"I'm not as interested in the strength of the economy as in whether it's on my side."](https://i0.wp.com/startupconnection.net/wp-content/uploads/Im-not-as-interested-in-the-strength-of-the-economy.jpg?resize=725%2C236&ssl=1)
