Many big businesses are struggling with downsizing, rightsizing, and other kinds of sizing activities that are aimed at reducing costs and building efficiencies. As big companies do these sizing things they regularly use strategies that foist work on smaller businesses. Sometimes the big businesses insist their suppliers do the extra work...the auto sector and Walmart have embraced this strategy for decades. Sometimes the big businesses insist their customers do the extra work...perhaps that's what the insurance companies are doing right now.

In any event, much work is off-loaded from the backs of big businesses onto the backs of small businesses.

In many instances, the small business people accept this as a fact of life. Small businesses who serve as suppliers to the auto sector have informed me in no uncertain terms, "We must accept this as a cost of doing business." And, I've let them know just how fragile their business model is and always will be if they accept that way of thinking.

Why are these people more-or-less oblivious to the fact they have choices?

Have any of these people taken the time to understand the 80/20 Rule?

Why don't these people perform cost/benefit analyses or some other analyses that will help them understand saying "Yes" is killing their businesses?

Why are these people so hungry for volume they bite off huge chunks of extra work then choke on them?

Why don't these small-business people at least make an attempt to simplify or, better still, automate the work that gets dumped on them by the big businesses?

I know how they'd answer those questions.

"We're too busy to figure out stuff like that."

• Too busy to seek out 3^rd Alternatives
• Too busy to borrow brilliance from other business sectors
• Too busy to negotiate
• Too busy to learn better ways

No kidding...

Of course they're too busy!

They're too busy doing work that has been discarded by other folks who know they cannot afford to do it.

***

True entrepreneurs don't let their businesses get caught in these sorts of traps.

True entrepreneurs see the problem coming at them.

As the problem approaches they make a quick decision: does this Problem contain the seeds of an Opportunity?

'Yes' or 'No'?

Quickly now, 'Yes' or 'No'?

If 'No' then simply don't accept the off-loaded work.

If 'Yes' then figure out how - innovate how - to take on the extra work and gain profit from it.

And - sometimes 'Yes' means the creation of a new service or product.

And sometimes 'Yes' means the creation of a new small business.

And, on occasion 'Yes' means the discovery of a gold mine.

And... Regularly, people think or say - "Why didn't I think of that?"

...Exactly!

Some businesses have slipped away into unprofitable territory.

Some businesses have taken a serious hit and are sinking.

Some business are doing OK, but/and face an opportunity to climb to the next level.

Some of these businesses will gain advantage under a turnaround; all of these businesses will gain advantage under a TurnAhead. 

What's a TurnAhead?

The first step in a TurnAhead is getting control of Cashflow and tied to this, solidifying Gross Margin. With the 80/20 Rule in mind, what things have the greatest impact on Gross Margin - particularly, what Revenue pieces have the greatest impact on Gross Margin? Focus on those pieces. Solidify them. Expand them. Duplicate them.

This first step involves clear and accurate communication with the most-trusted people available in the organization. This means a series of simple questions followed by simple answers. Questions beyond simple ones are the wrong questions. Answers beyond simple ones are signals of confusion and unhelpful thinking.

The roots of big problems are simple roots.

The keys to big opportunities are simple keys. 

The challenge you will always face is: simple does not mean evident or obvious...in foresight. Simple means simple in hindsight and, if you are really skilled, simple means common sense in real-time. 

So, when you are working on a TurnAhead:

• concentrate on trusted people who think accurately,
• focus on Gross Margin and Cashflow,
• ask and repeat simple, clear questions, &
• act only on the simple, clear answers.

The 4 Hierarchies of Delegation

When you assign responsibility and expect accountability you can give your subordinate one of the following 4 instructions:

1. Investigate, report facts back to me, and I will make a decision on what you need to do.
2. Investigate, give me alternative actions, with pluses and minuses of each, and give me your recommendation on the best option...then I will decide what you need to do.
3. Think it through then activate your plan and advise me of what you did.
4. Think it through then activate your plan and there is no need to inform me.

***

Subordinates should be accountable for their performance of delegated tasks.  This can be achieved by:

• Evaluating performance based upon subordinates staying within authority boundaries.
• Measuring performance based upon achieved results.
• Scheduling update meetings with the subordinates. 
• Listening to subordinates and coaching about action adjustments.

 ***

To be successful subordinates must be given the following structure:

• A detailed job description
• A written system to be followed
• Training, coaching, & mentoring
• Goals that can be measured
• Goals that are achievable
• Guidelines and standards of performance
• Timeline schedules to be followed
• Authority to act (Levels of authority should be pre-assigned...see above example of 4 Hierarchies)
• Rewards for performance of actions and results