It's magic

A few months back, we wrote about optimism and pessimism and the need for a small business owner to have a pragmatic view of his or her world.

Fixating on the bigger picture -- that is the macro environment -- is often more valuable as personal entertainment than it is productive for your enterprise.

Everyone lives in the same macro environment.  It suits some; doesn't thrill others.  The difficult job you have is to figure out how these big picture issues do, will or won't affect you and organization, without letting your personal preferences and interests color your judgement.

It's a hard task.  There are many cognitive biases that we all succumb to from time to time.  Here's a link to a list of 61 of them. 

Which gets us back to positive thinking, or rather, rational pragmatic thinking.  How do you check your own work, so to speak?  In a recent article, The Danger of Positive Thinking, Geoffrey James offers some tips for preventing a lapse into magical thinking:

School's in

Discussions at our monthly TAB Board meetings are usually both deep and wide-ranging, as you might expect from a gathering of business owners and CEOs who've come to "talk shop."

From initiatives to ideas to strategies for implementing same, the conversations can get intense.  Board members are focused on improving their operations and their ability to manage the constant change that comes from that striving.  As my colleague John Dini wrote this week, while failure may indeed be an option, in order to succeed, good enough never is.

Or as C.S. Lewis said:  "Experience is a brutal teacher.  But you learn.  My God, do you learn." 

Some lessons from the field, from the mouths of CEOs:

• Follow the money: When analyzing sales results, "Follow the money."  Poor closing rates usually mean an inability to ask for the sale (the money) or to get to the decision maker (the money.) Find out which it is and coach to correct.  Or find someone who wants to follow the money.

• Focus on focus: When assigning new initiatives or tasks, always ask two questions: "What do you need to perform this and what do I need to take away?"  This helps focus yourself and your staff on the resources and commitments needed to execute the task and also generates buy-in.  Both are critical to successful delegation.

Your aim, please?

"In the long run, men only hit what they aim at."- Henry David Thoreau.


I bet you didn't think of old Hank Thoreau as a management guru.  Perhaps you know him better as  "author, poet, philosopher, abolitionist, naturalist, tax resister, development critic, surveyor, historian, and leading transcendentalist."

The sentiment above is a nice thought on focus. And that's how the quote is often used, including by yours truly.  We love focus.  Focus is important; you can't hit your targets without being able to sight them.

But focus is only half the story and quote (literally.)  Thoreau's coda is "...therefore, though they should fail immediately, they had better aim at something high."

A romantic sentiment, beautifully expressed.  But is Thoreau's quote espousing a good business principle?  Is it the big picture that matters? Is vision is more important than accomplishment?

We've looked at the both the "vision thing" and "failure is the best path to success" before, and found a fixation on either, to the exclusion of the other, somewhat problematic.

Dead-eye

This week we mark two milestones:  the two-year anniversary of our TAB business and blog post number 50.

We will be celebrating the former with friends of TAB at our Summer Social, to thank them for their support of our enterprise.  Without you our journey would not have gotten much past the start, would not been nearly as fulfilling and surely would not have been as much fun.  We will all refrain, though, from expressing our inner Kool and the Gang.

As to this blog, over the past year we have tried to reflect that journey through our weekly posts, channeling the information, advice, trials and triumphs of our members and the organizations and individuals that make up our community.  It has been given me the ability to pay forward the education that I am continually receiving from the Capital Region business owners, leaders and entrepreneurs who are successfully leading their organizations forward.

About time

"Everybody's talking at me.  I can't hear a word they're saying." - Harry Nilsson.

 

Do you practice management by tuning out?  

There's the tuning out that Harry Nilsson sang about:  unhappy with your current situation, you shut out the world because you just can't handle one more request from yet another needy person.  You long for more control, a better situation, a clearer path, but aren't sure where that place may be or how to get there.  You are stuck in neutral; you know that there's a road not taken for you, but you can't find your keys.

There's also the productive kind of tuning out, one that's sadly not immortalized in song.  It's where you actively limit your distractions, focus on your priorities and feel a tangible sense of accomplishment.  You are in control, in balance, working on your business rather than in your business.  You make some progress every day, and hit your goals over time.

We all live in the same age of distraction.  It affects us all, and especially for those of a certain age, time seems to be accelerating away from us.  There's too much to do and realistically, not enough time available to do it all.  We are constantly running to catch up to our to-do lists and not making progress.  I call it the one head, many hats syndrome.

Shark Jumping

It's a new year, and the armchair quarterbacking on 2011 is in full swing, as a variety of businesses, mostly retail, report December results.  It looks like a mixed bag...some gainers, some laggards, some BIG losers.

Sears and Kmart seem to be among the losers, with the announcement that they will be shuttering stores across the country.  Will we lose these venerable names to the dustbin of business history?  Possibly, and they would join a decidedly non-illustrious group.

While attention is paid on the failure rate of small and start-up businesses, as noted in this recent blog post, there is also a continuing churn at the top of the corporate heap:

Comparing the Fortune 500 companies in 1955 and 2011, there are only 67 companies that appear in both lists. In other words, only 13.4% of the Fortune 500 companies in 1955 were still on the list 56 years later in 2011, and almost 87% of the companies have either gone bankrupt, merged, gone private, or still exist but have fallen from the top Fortune 500 companies (ranked by gross revenue). Most of the companies on the list in 1955 are unrecognizable, forgotten companies today.  That's a lot of churning and creative destruction, and it's probably safe to say that many of today's Fortune 500 companies will be replaced by new companies in new industries over the next 56 years.

Along with Sears and Kmart, Best Buy seems to be jumping the shark as well. This Forbes story tells a tale that is all too familiar to customers, but seems to continually escape notice of those leading these sinking ships.  In nearly all cases, the operators lose touch with the customers...and start selling what they want, rather than what the customer wants or needs.

Smaller business owners have a natural advantage over these behemoths, in that they are closer to their customers, but, alas, often suffer the same "buy what I have" rather than "sell what you want" mentality.

It's the customer who decides your businesses fate.  Engaging yours in an active dialog about their wants and needs is the single best thing you can do to grow your business.