Category Archives: Strategy

how much friction is in your business?

Is the friction in your business higher than you think?

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The roads in the area are in the process of being repaved. When I moved here, they were in bad shape and have worsened in the decade since. Ruts, potholes, and rough pavement made the drive an adventure. But it wasn’t until the freshly paved lane stood next to the lane waiting to be repaved that I realized just how bad the old one was. The freshly paved lane was quiet and smooth. Switching lanes brought a significant amount of noise and vibration from the rough surface.

The thing is, things wear down over time. They don’t work quite as well. The friction increases. And it isn’t until they are fixed that you realize how bad it was. That’s why it is important to have measures in place to signal when it is time to make a change. If you go by feel alone, you’ll miss when it is time to pull the trigger. How are you measuring the friction in your business?

the sunk cost dilemma

The Sunk Cost Dilemma

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Last week I called “customer service” to resolve an a billing error. It should have been a very simple fix. I thought I’d be on the phone for no more than 10 minutes. An hour later and 4people, the issue was resolved, kind of. I was mad I wasted an hour of time on such a small issue. Once I was on the phone, I didn’t want to hang up as I was transferred from person to person. I had already invested a lot of time. Surely, the issue would be resolved in a few minutes. It was the classic sunk cost dilemma.

In business, we keep investing in products, services, capital, facilities, etc. because we think it will just take a little more time and money to achieve the results we want. But sometimes continued investment is not worth it. There comes a point when you are just throwing good money after bad. That is when you need to recognize the costs are sunk and should not be the reason to continue investing.

Do you have a method for evaluating whether continued investment is warranted? How do you get out of the sunk cost dilemma?

the most you will ever get is what you ask for

The Most You Will Ever Get is What You Ask For

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Years ago, one of my Rice University classmates made a statement that stuck with me. She said: “the most you will ever get is what you ask for.” And she was right. So often, we are afraid of hearing “no” in response to our request. But the thing is, if you don’t ask, you won’t get what you are looking for. So, why not just ask?

the subtle art of saying no

The Subtle Art of Saying No

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Saying no seems easy. But for many people it is not. I regularly work with people who have too much on their plate. They haven’t said no, whether in their work life or home life, and are overextended. By not saying no, stress levels increase, the most important work doesn’t get done, or other people are robbed of developmental opportunities. In some cases, not saying no leaves other people hanging.

The most successful people I work with have figured out the subtle art of saying no. The person on the receiving end of the “no” understands and walks away understanding why, and respecting the response. And the person who said no is able to focus on the most important things.

Have you mastered the subtle art of saying no? If not, what is holding you back?

what is your customer experience?

Is Your Customer Experience Driving People to Your Competitors?

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Over the weekend, I went to a brick and mortar store to buy a few things for an upcoming event. Of the four items I was looking for, the shelves were empty for two and they only had two (of six needed) of the third item. At a second store, the results were the same. They were out of stock of two of the items. In both cases, the people suggested I look online, but not necessarily at their store.

But here’s the thing: There is no way to capture sales that don’t happen because you are out of stock. And, when you tell people to shop elsewhere, they will.

The lessons from this time of disruption in the retail industry are important to observe and to learn from. Too often people are using Amazon’s dominance as an excuse for a poor customer experience. Website problems, out of stock inventory, and long delivery times are just a few examples of poor customer experience. And when not addressed, the business will go out of business.

Do you know how your customer experience stacks up? What actions can you today to improve your customer experience?

who is in your orchestra

Does your organization operate like an orchestra?

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When was the last time you saw the symphony?

Before the performance begins, each musician tunes their instrument. It is a hodgepodge of disjointed noise. Then, the conductor walks to the center of the stage, raises the baton, and a beautiful melody fills the air.

Do you have a picture of the best performance you’ve been to in mind? That’s how a high-performing organization works. You know it when you see it.

Each person in the orchestra is highly skilled at playing their instrument. They each play their part and have to work together to make a beautiful piece of music. And they all want the best players in each chair. Any weak link will spoil the performance.

Does your organization look and sound like an orchestra? Do you have any weak links? What can you do to strengthen your organization now?

 

are sunk costs impacting your decision making

Are sunk costs impacting your decision making?

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Years ago, a customer of a company I worked for halted their capital spending program. The entire program, no matter how far along the construction was. Some facilities were more than 80% complete. And the amount of capital spent was in the billions. The market collapsed and no longer supported new capacity coming online. So they just stopped.

It was an amazing decision. But it was the right one for them. From that point on, they would have been throwing good money after bad. It takes guts to walk away from that much invested capital. But it was a sunk cost.

Whether it is time or money spent, once the resource is spent it is a sunk cost. Sunk costs are anchors that drive bad decisions. How often do sunk costs impact your decision making?

Are you part of the problem or solution?

Are you part of the problem or the solution?

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A few days ago several folks were talking about manners in the locker room at the gym. The topic du jour—a pile of wet towels at the bottom of the locker that had to be cleaned up by the next person. It happened again, but this time the towels were piled on a bench in two separate piles, probably by two different people. Without a word, a woman picked them up and dropped them in the towel bin. The scene highlighted a basic phenomenon—people that are part of the problem and those that are part of the solution.

This sort of scene plays out daily in work environments. At work, the towel may be an unfinished project that others have to complete or disruption in the workplace that slows the team down. Many times the people that are creating the problem are unaware of their role in it. How are you creating an environment of people who create solutions?

leadership lessons from Laurel vs Yanny

Leadership Lessons From “Laurel vs. Yanny”

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Laurel vs. Yanny was everywhere over the last week. I heard Laurel so clearly, it was hard to imagine hearing Yanny. Surely someone must have adjusted the pitch so people could hear both. So, I went out to the internet to find it. I found a Youtube video that adjusted the sound in a way that was supposed to let you hear both. And I still heard Laurel.

As a leader, it is important to hear different perspectives from your team, your people, and your customers. Sometimes it takes work to hear those perspectives. And sometimes, you won’t hear the perspective directly no matter how hard you try. But, you need some way to know that it exists and it is a valid perspective.

How are you seeking out the perspectives you need to hear?

one ah **** wipes out ten atta boys

One “Ah ****” Wipes Out Ten “Atta Boys”

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He sat there rocking back and forth like he was in a rocking chair.  Hands folded over his belly, thumbs twiddling as he talked.  You could tell by looking at him he had been around the block several times—it wasn’t just the years on his face, it was the calm, but knowing air about him.

“One Ah **** wipes out ten Atta Boys” he said

The comment was simple, but profound. We were talking about risk management and the impact on reputation. When something goes really wrong, it wipes out your credibility and all of the good things you’ve done before. And if you get a second chance, it takes a long time to come back to the status you held before.

How do you make sure you are thinking about risk early? And how do you make sure you don’t have one bad moment that wipes out ten good ones?