Everyone talks about demographic statistics like age, race, and geography without giving much attention to the cultural implications that go along with these demographics.
For example, 42% of the current population was born before 1980, making them 45 years or older. That means that about 60% were born after 1980 and have no memory of things like Kennedy’s death, the Vietnam war, The Beatles, using World Book instead of Google, and more. These are two large demographics with completely different sets of lived experiences and – as a result – wildly different worldviews.
I’ll illustrate how this plays out in daily life with two personal examples.
Growing up in the late 1940’s, my parents attached bells to clothes so they could find me when I ran out to play with the neighborhood kids. Today’s parents keep their kids on a much tighter leash — as evidenced by the fact that my neighbor just put up a fence to ensure his toddler would stay in the yard where he could see him.
As a doctoral student in the 1960’s, I researched my Ph.D. thesis at M.I.T. The department of Political Science – which did war research on Vietnam – was next door to our department. Thus, we had bomb scares a few times a week and I was required to haul computer punch cards home every night to ensure they were safe. Do young people today even know what punch cards are? Have they even heard the phrase “do not fold, bend, or mutilate?” Furthermore, people of my generation finished their schooling without laptops, Microsoft Office, or cell phones — a reality that is unfathomable to today’s students.
The most significant demographic consideration today is the nation’s aging population and its impact on economic growth. Contrary to popular opinion, supporting a 2-3% annual economic growth rate requires us to welcome 1-2 million immigrants every year.
While unemployment rates get the most press, it is actually labor shortages that are causing critical economic dilemmas — and this fact directly correlates with immigration.
Currently, a significant share of the about 300,000 jobs created monthly are from immigrants filling some of the over 9 million job openings. This trend is projected to continue for several years, especially with declining birth rates and a declining population in the child-producing ages. Without welcoming immigrants into our country, the lack of available laborers will continue to result in labor shortages and economic struggles.
In contrast, as the population lives longer, many older individuals face critical financial and social challenges. Dementia and Alzheimer’s have become significant dilemmas, especially as financial resources and government benefits decline. Health care needs, safety concerns, and loneliness become significant as friends and relatives pass away. Options for transportation, housing, and entertainment become limited and difficult to execute. A significant number of low-and medium-income seniors experience financial challenges that require them to extend their retirement plan. With increased longevity, even those individuals who have the means to retire want to stay in the workforce longer.
Hispanics make up about 20% of the U.S. population, compared to 7% in 1980. The average age for the Hispanic population is 30, compared to 39 for the total U.S population. This population tends to live in the Southwest. Most have been in this country for more than 10 years, over 80 % speak fluent English, and the average income is $ 59,000. The bottom line is that the Hispanic population is growing, assimilating, and contributing to the economy. Thus, they expect more and more recognition like native Americans.
In general, we need to recognize the diversity of the U.S. population. In the sixties, the nuclear family was considered the norm and typically considered of a white husband and wife, two kids, and a dog. Today, our country has diversified and families look different. Sex, race, national origin, sexual preferences, and age all vary dramatically and need to be recognized. Many of the social issues facing today’s society result from not recognizing and embrace diversity.
Demographics are more than just statistics. Specifically, these cultural shifts provide numerous opportunities and challenges. In particular, as our society becomes more complex, the cultural impact of demographics becomes more significant. In particular aging, Hispanic population increased, and diversity are providing numerous opportunities for better decision making. You must make certain to constantly evaluate relevant demographics and demographic trends as they relate to your business both in the now and in the future. This includes both local and national trends. Demographics can be one of the keys to your business’ success or failure.
Contact me to learn more about how you can research demographics in order to help you market your business more effectively and remove that old elephant from your closet.
Dr. Bert Shlensky, president of Startup Connection, is a graduate of Sloan School of Management at M.I.T. He served as the president of WestPoint Pepperell’s apparel fabrics business & President and CEO of Sure Fit Products. Having provided counseling to over 2,000 clients, he focuses on working with select start up and small businesses.
In recent months, we’ve witnessed two impressive instances of technological advancements:
Both Philadelphia and L.A. faced bridge collapses on their major highways. Surprisingly, instead of enduring lengthy repair times, both bridges were up and running in just a few weeks. What made this possible was a refreshing shift in approach—various agencies put aside their usual squabbles over goals and methods and focused on speed and quality. This collaboration led to the implementation of new methods and processes.
Similarly, amidst the tragedies of mass shootings, there has been progress in handling such events more effectively. The scathing report from the Justice Department on the Evolve Texas shooting indicates a growing recognition and demand for proper techniques. Key strategies in dealing with these shootings appear to be clear: authority, training, speed, and coordination among agencies. Although we haven’t yet figured out how to prevent them entirely, we’re making strides in responding more efficiently.
Both of these examples underscore the value of the proverb “it takes a village” when it comes to improving decision-making and outcomes. Another pertinent adage is “the chain is only as strong as its weakest link,” emphasizing the importance of addressing vulnerabilities.
Despite these seemingly obvious recommendations, they are often overlooked. Too frequently, we pursue simplistic solutions without fully understanding the complexity of the problems. For instance, proposals aimed at improving education or alleviating poverty often fail to consider the broader context. Enhancing education, for example, may prove ineffective if children are grappling with hunger, homelessness, or lack of support.
Here are some key considerations for fostering a collaborative approach:
View the whole issue and team: Just as in football, where quarterbacks are essential but dependent on the entire team, organizations should recognize the interdependence of different functions. Focusing solely on product and marketing without addressing logistics or customer service can lead to failures, as evidenced by the Boeing 737 Max situation.
Identify and remove bottlenecks: Streamlining processes and activities can enhance efficiency. Companies like Amazon have excelled in this area, significantly improving customer satisfaction through innovations like one-day shipping. Identifying and addressing bottlenecks through changes in procedures and technology can yield substantial improvements. Self-checkout, automatic tolls, and developing apps are just some examples of how this can be implemented.
Balance risk and opportunity: Fear of risk often hampers efforts to pursue promising opportunities. Sports teams are increasingly embracing risk by taking more three-point shots, stealing more bases, and going for it more on fourth down. Outsourcing can be an effective tool to find great resources, speed development, manage fluctuations and increase effectiveness. Businesses can similarly benefit from taking calculated risks to capitalize on opportunities. Additionally, effective management of liabilities, such as costs and inventory, is crucial for long-term success. For example, developing more common parts, stocking components, and focusing on high volume items can increase efficiency and reduce lead times.
Don’t ignore outlying opportunities and people. Optimizing resources, such as expert personnel in medical teams, can significantly enhance effectiveness. For example, head surgical nurses are critical to provide and manage processes, prep and recovery. Similarly, focusing on high-value customers rather than pursuing a broad market can maximize profits for businesses. For example, banks are focusing more on high wealth individuals which provide the most profits than diverse groups with little potential.
Incorporate change in your programs. Change is happening faster and is more volatile and diverse than in the past. Some examples include museums that have recently been directed to not show Native American exhibits unless they are properly approved and owned, resulting in shutting down many of those exhibits. Women’s rights and demographics are all causing dramatic changes as well. In another example, my granddaughter takes four courses via Zoom at an excellent university. Some professors have adapted to this well by developing new and creative programs. Others just put up a boring lecture in front of a few hundred students. Another example is the world’s largest cruise ship holding over 4000 passengers and 40 restaurants just began its first voyage. And organizations are still developing emotional solutions to work at home rather than understanding strengths and weaknesses and maximizing appropriate solutions. Whether it’s adjusting to new regulations or embracing innovative technologies, organizations must be agile and proactive in responding to change.
Address the weakest link: Pay attention to the viability and profitability of markets and initiatives. Understand the root causes of failures, such as the decline in IPOs. As a result of this, many investment bankers, analysts, real estate developers and lawyers are unemployed or underemployed. On that, it’s important to focus on sustainable growth strategies rather than short-term gains.
Manage exceptional people and solutions better. The University of Iowa women’s basketball team is energizing the game because of the excellence of their star player. While they focus on maximizing her skills, they also incorporate the team, and she is one of the team leaders in assists and rebounds. Michael Jordan is famous for passing the ball to a teammate in an NBA final when he was guarded by multiple defenders. In business we can get too dependent on a simple tactic in devolving competitive strategies. For instance, even though pricing is more complex than we generally acknowledge, there are other factors like service, speed, and in-stocks than can make pricing irrelevant.
In conclusion, while analytics and problem-solving are essential, fostering teamwork and addressing weaknesses are equally critical for organizational success. Remember, it takes a village. By considering alternative approaches, measuring outcomes, and embracing change, organizations can enhance their effectiveness and adaptability in an ever-evolving landscape. This includes incorporating new approaches, intuition and out of the box solutions.
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: https://www.startupconnection.net/ for more information.
At StartupConnection, we’re all about delivering blogs that are not just informative but also packed with actionable insights. We understand that information overload is real. So, we’re testing a new approach – a blog solely dedicated to parameters, giving you the space to prioritize what truly matters. We’d love to hear your thoughts on this, so feel free to drop us some feedback! In this post, we will be discussing optimizing strategies regarding making decisions and taking action.
Developing Programs with Precision
Sometimes, we’re so engrossed in creating programs that we forget about the parameters needed for optimizing strategies. Let’s simplify it. Here are some straightforward tips to consider parameters effectively:
Crafting Your Money-Making Plan
The “Pro Forma Income Statement”
This may sound a bit grand, but it’s your roadmap to cash flow.
Consider how a big marketing budget can affect your income. It may seem counter-intuitive but spending more on marketing might just boost those unit sales.
Investor-Worthy Plans
Investors crave plans but hate wild guesses. Be the entrepreneur who delivers realistic projections using templates. Specific numbers matter, even if they’re just a start. Remember that sales volume goals and pricing strategies are the building blocks of any plan.
Holistic Planning
Comprehensive Considerations
Levels of marketing, overhead, and administrative costs – they all play a role. Analytical, social, and intuitive considerations should also blend seamlessly into your plan.
Adaptability is Key
The world changes fast, and so should your strategy. Regularly review parameters like population, economy, and social values. Stay updated as the latest variables might just be the game-changer.
Navigating Cause and Effect
Decoding Relationships
Cause and effect can be spurious. Relationships involve a mix of factors. Analytics is critical, but don’t ignore intuition, risk, and low probabilities. Just like Gates, Bezos, and Jobs – master the art of thinking outside the box. It is the outliers and risktakers who create much of the innovation, excitement and change in our society.
Managing Bias and Embracing Risk
Navigating the Bias Maze
Bias, especially in small businesses, is human. Be mindful; assumptions, analysis, and data can sway your decisions. Consider different age groups without falling into bias traps.
Risk and Outcomes
Predicting results with historical data is straightforward. However, for new programs or inconsistent data, it’s about educated estimates. Embrace risk as it’s where innovation thrives.
Commit to Action
Nike’s Wisdom: JUST DO IT!
Not making a decision is a decision in itself. Recognize the importance of parameters in your decision processes.
Balancing the 80-20 Rule
Strategic Account Maximization
The 80-20 rule suggests maximizing old accounts with increased potential before reaching out to new accounts. Balance critique with support, collaboration, and teamwork.
The Expertise Quotient
Seeking and using expertise might be the missing link in your strategy. Collaboration enhances effectiveness, so let’s focus on teamwork as well as obtaining expert support.
In summary, understanding and incorporating parameters into your decision-making process is the secret sauce for success. So, let’s navigate these parameters together and remember that optimizing strategies will help to pave the way for effective and strategic decision-making.
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: https://www.startupconnection.net/ for more information.
We all recognize the importance of change, but also need to consider volatility in affecting change.
Take the stock market, for example – it’s like a rollercoaster influenced by economic twists, social vibes, and market moods. Recently, in 2023, the S&P 500 went up 17% from January to July, then down 11% from July to October, only to bounce back up by 11% from October to November. Minimally, you should evaluate investing for short-term change or simply investing for the longer term.
Rapid Evolution in Our World
Our world is evolving fast. Technology, our tastes, and what’s considered normal are flipping markets on their heads. Leisure, travel, and entertainment are booming unexpectedly. Even the diet industry is getting a facelift thanks to new drugs helping people shed pounds. It’s a game-changer.
Social, political, and economic events are regularly disrupting our environment. From weather havoc to terrorism, it seems like endless crises.
Managing Unpredictability
How do we handle all this unpredictability? First, we’ve got to understand volatility and figure out how to manage it. When bridges suddenly collapsed in Philadelphia and Los Angeles, they were fixed in record time – thanks to clear goals, teamwork, and innovative solutions. We need the same approach for everything, from health issues as we age to dealing with climate events and political shake-ups.
Take our health, for instance. As the years pile on, it’s a good idea to play offense. Waiting for a health crisis to hit is like playing catch-up. Hitting the gym, eating a bit healthier, and throwing in regular checkups are like the MVPs in the game of avoiding health rollercoasters. Same goes for other bumpy rides, like dealing with the economy, wild weather, or political shake-ups.
Look at how we’ve been stepping up our game in handling weather drama like fires and hurricanes. It’s all about staying on top of things, being ready, and finding solutions. That’s the playbook we can follow for other curveballs that life throws our way.
Emphasizing Communication and Cooperation
Communication, coordination, and cooperation should be our priorities. Fire departments focus on safety and prevention rather than just enforcing laws. Why can’t we do the same for issues like crime, making things better between police and communities?
Rethinking Progress and Success While Being Aware of Bias and Risk
It’s time to rethink progress and success. We’ve made huge strides in areas like reducing smoking and drunk driving. Reviewing plans is important, but we need to do it together and be open to expert advice for better problem-solving.
Don’t forget about bias and risk: Bias is, perhaps, the biggest culprit in unreliable results. “It won’t happen to me” may be the greatest cause of unexpected volatility. Here’s the thing. We love to be right. We hate to be wrong. So, we will go to extraordinary lengths to make sure that we’re proven correct. And we won’t even know we’re doing it. Our brain, working surreptitiously in the background, doesn’t alert us too how biased we actually are.
Creating a Supportive Environment and Setting Specific Goals
Creating a supportive environment, both physically and socially, can help us deal with crises better. This includes a safe, productive and supportive physical space, along with social and businesses practices that are fair, consistent and understood can significantly add to the capability to deal with crises.
Getting specific with goals and solutions is key. We all get the importance of goals, but sometimes we spend too much time pointing fingers instead of finding solutions. Take a cue from success stories like fire safety and emergency highway repairs.
It’s all about staying open and analytical. Businesses need to understand their environment, learn from both wins and losses, and be open to new ideas. In other words, don’t be like Jack Nicholson saying, “You can’t handle the truth.”
Embracing Change for Better Solutions
In a nutshell, recognizing that change and ups and downs happen is the first step to tackling problems. We need tools to understand and predict change – just like we do with things like COVID and flu shots. Being prepared and understanding volatility will lead us to better solutions and alternatives.
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.
Which line is longer? You may think it’s the middle line because the arrow points jut out. But the truth is, they are all the same size! You might not have figured it out if it was not pointed out to you. We tend to hang on to our initial perception of a situation or a problem, because we believe in deciding things as soon as we can. In some things, such as the belief that grandparents are allowed to spoil their grandkids, you will run into no arguments. But in other things, a little perspective can help immensely.
The economy has several measures of progress and each of us uses the one which support our perceptions of growth or decline A current trend since the pandemic illustrates how critical perceptions can affect our opinions and policies. For instance, income inequality is increasing as evidenced by the fact that 69 percent of the total wealth in the United States was owned by the top 10 percent of earners. In comparison, the lowest 50 percent of earners only owned 2.5 percent of the total wealth. and that many Americans don’t have $400 to pay for an emergency. On the other hand, the collective net worth of the bottom one-fifth went up from $3.3 trillion in 2019 to $4.2 trillion at the end of the second quarter of 2022, indicating they can finance a better lifestyle.
What is critical is that we understand our perceptions and their impact on our decisions, activities, and behavior.
A critical factor is our perceptions of the presenter, the environment and the communication. Licensing agreements, celebrity endorsements and great environments are all designed to make the audience comfortable with presentations, but we seldom acknowledge how they affect our individual behavior. It’s great to have a convention in Honolulu to present your ideas, but if everything about the presentation is solid, it should work just as well in Dubuque, IA or Nome, AK. Environment is important but it should supplement and enhance a convincing presentation, and not be used to make up for incomplete or inadequate data. For instance, a steakhouse can have the right look, but if the meat is not tender and does not deliver the expected flavor, no one is going to dine there after a while; they might find the local diner more appealing because you get what you are looking for in a meal.
Our perceptions frequently exclude key data or are based on highly uncertain information. While they are present in our environment and affect our decisions, we usually avoid consideration of issues like religion, intelligence, politics, wealth, sex, morality, and appearance in our discussions. Part of that is simply out of politeness, but it never hurts to take that into consideration when deciding on a course of action or a strategy to take. In contrast, we may express opinions about issues like climate change, politics, immigration, electric cars and artificial intelligence with insufficient knowledge or analysis. Again, we often let our initial perceptions do the analyzing for us. Patrick Mahomes and Travis Kelce are great football players, but do they really know so much about life insurance that you would automatically go with State Farm? One would hope you would do as much homework on which insurance company to go with as they did as to which insurance company to endorse! After all, they don’t want to waste their time and money either.
One of the most significant aspects of behavior 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. But thinking outside the box, stepping away from perceptions, can lead to greater clarity. Risk does not always mean throwing a dart blindfolded; it simply means going against what you consider the norm, through research and analysis. Remember what Davy Crockett said:
Bias is critical issue in perceptions. Bias is one of the greatest complications when it comes to accuracy in the scientific analysis of decisions. This includes statistical problems like sampling, measurement, and development of information. For example, assessing Covid accurately is problematic due to varying demographics such as age, race, and other factors that convolute the analysis. In many cases, these can be understood, but are still challenging.
I also believe that social bias can be more impactful than statistical bias. This includes our preconceived perceptions and assumptions. I’m always amazed that many programmed employee selection tools outperform interviews especially in jobs requiring specific skills. Such tests remove things like unconscious age, sex, and racial discrimination. At the end of the day, you want the best person to handle the responsibilities you give them, and you want to remove anything that impedes that decision. Again, what seems like a risk has been whittled down to where the risk is minimal.
Cultural and environmental factors also affect bias. Dress, demographics, weather, location, and culture all affect perceptions in the decision-making process. These can also be used to your advantage in talking to colleagues by increasing bonding with similar people. Whenever I meet someone who is also from the Southside of Chicago, agreement on differences becomes much easier.
Style and personality greatly affect perceptions. Race, sex and age are the most common factors. Differentiating personality types like “right brain or left brain” or analytical versus creative greatly affects perceptions. For example, we greatly underestimate the positive or negative impact of using math in many arguments.
We also need to consider the timing of perceptions. In general, the audience, whether on the internet or in person, forms perceptions of a presentation in the first 90 seconds. That does not seem to be much time, but the right focus and the right keywords can get the train going and make for an exciting ride. Now, as an admitted nerd, my presentations can be a little boring. Thus, I try to improve their acceptance rate through tools like editors, comedy, stories, and pictures. I have learned the hard way that my poor spelling has sidetracked some of my best arguments. Thank goodness someone invented spellcheckers!
Let’s start a conversation – no matter what stage you are in with your business. As an exercise, tell us how you have better managed perceptions, or been victim to its bias. Then, tell us what areas you to need focus on in order to see improvement.
Dr. Bert Shlensky earned a PhD from the Sloan School of Management at M.I.T., mentored a few thousand clients at Score and his own practice, grew Sure Fit products from $ 50 million dollars to $150 million in sales including $ 60 million of direct internet sales, was President of WestPoint Pepperell’s Apparel Fabrics Business and headed the $400 million Culet Shirt Group.
In short, he knows what works and can help you lead your company to greater profitability and success. Find out more at StartupConnection.net, or email Bert at:
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!
