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Name of author Rick Baker, P.Eng.

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Saying "No" & Seeking Simple

by Rick Baker
On Sep 27, 2013

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 3rd 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!

2 Different Ways to Solve Problems

by Rick Baker
On Sep 26, 2013

While the symptoms of many business problems are straightforward, the roots of many business problems are not straightforward. Often the roots of business problems are concealed under a shroud of human behaviour.

To solve business problems we need to do one of two things:

  1. We need to get to their roots and inject remedies at the root level or
  2. We need to replace the existing processes with processes we believe will work.

The more time I spend helping business people remedy serious business problems the more I'm swayed to favour the second approach.

Here are some thoughts about each approach...

Finding the roots of business problems and making changes around those roots in order to remove the problem:

Three things combine to cause business problems. Those three things are people, process, and situations. To the extent you chose the people, designed the processes, and accurately anticipated the situations those people and processes would experience you have ability to understand where things went off course…you have the ability to understand the root cause (or causes) where the problem began (or escalated). All else being equal, the better you know the people, processes, and situations the higher the likelihood you will be able to zero in on the root causes of problems. 'All else being equal' assumes there is no people-baggage or ego-challenge that will confound your ability to investigate the causes behind the problems.

Ignoring the root causes of problems and replacing the existing processes that lead to the problem with well-thought-out processes that remove the opportunity for the problem to continue

When you really stop to think about it, most business processes are simple strings of tasks. The tasks are performed by people or they are performed by machines, which are operated/managed by people. Most business processes happen in a limited number of different situations, which can be anticipated (with forethought). Leaders or managers (either with or without the help of the people involved) can consider the desired outcomes, think through the range of situations, and define the people requirements and the processes required to complete the necessary tasks.

Both approaches to problem solving can generate solutions. If one approach fails then the other can be used as 'Plan B'.

The question is,

What approach should be pursued first?

Often, newcomers favour the 2nd approach...for the wrong reason. Newcomers want to make their mark and prove what they know. That's the wrong reason to favour the 2nd approach because proving what you know is almost guaranteed to alienate people and deprive the newcomer the opportunity to understand the details of the processes.

Often, founders or long-term people use only the 1st approach.  Being familiar with the people and the processes founders and long-term people are confident they can quickly get to the roots of problems. Sometimes they achieve quick positive results much like a teacher can help a student correct an answer to a math question. Sometimes their solutions do not work despite their crystal-clear impression the solution is the right solution. When this happens, there's a high chance the roots of the problems are concealed in shrouds of human behaviour. There's also a high chance the solution efforts will stall and the problem will live on.

It is important to step back when a serious problem arrives. It is important to consider the best way to address serious problems.

If you are a newcomer, do you want to risk alienating people? Depending on the situation that could be the absolute worst thing to do...or it could be the absolute best thing to do.

If you have been in your role for a long period, do you want to presume you can quickly find the root of the problem? Depending on the situation that could be the absolute worst thing to assume...or it could be the absolute best thing to assume.

The more I help business leaders address their problems, the more I'm inclined to:

• first, understand the desired outcome

• next, focus on the situations

• next, develop a solid process that ensures the desired outcome

• then, present the new approach in a way that influences people to buy-in

To be clear: while that's my favoured approach, I know it does not fit certain situations and will not work with certain people. 

Tags:

Solutions & Opportunities

Thought Tweet #832.5

by Rick Baker
On Sep 24, 2013

Thought Tweet #832.5 Converting challenge into change...isn't that the essence of the leader's role?

 

The Thinking Behind The Tweet

Leaders see challenging situations....political, technological, interpersonal, economic, etc.

Leaders envision and desire change.

Leaders inspire other people to convert challenge into change.

Thought Tweet #831

by Rick Baker
On Sep 23, 2013

Thought Tweet #831 Allies will help you build your business. Work to choose allies. And choose your allies carefully.

 

The Thinking Behind The Tweet

And, work to build relationships with your allies. Work to understand their interests, their desires, and their needs. Work to find middle ground and opportunities that satisfies your needs and your allies' needs.

 

Tags:

Entrepreneur Thinking | Solutions & Opportunities | Thought Tweets

Thought Tweet #827

by Rick Baker
On Sep 17, 2013

Thought Tweet #827 Good followers want to vent their strengths. And you want to see strength in action...am I right!

 

The Thinking Behind The Tweet

Good followers want their talents, knowledge, and skills to be linked to opportunities

Good followers expect their leaders to generate those opportunities.

 

Tags:

Solutions & Opportunities | STRENGTHS: People-Focused for Success | Thought Tweets

Thought Tweet #826.5

by Rick Baker
On Sep 16, 2013

Thought Tweet #826.5 We are problem specialists, each of us able to attract an ongoing series of a certain type of problem.

 

The Thinking Behind The Tweet

Many of us don't see the problems coming let alone see we are the specialists who create them, with the huge capacity of help delivered by our unique talent shortfalls in certain areas. 

Tags:

Solutions & Opportunities | STRENGTHS: People-Focused for Success | Thought Tweets

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