fatal illusions: 14 blindspots that can kill your business
DESCRIPTION
Every company has blindspots that can be fatal for the future of their business. In this presentation Bill identifies 14 such blindspots he has commonly sees in the businesses he works with. Learn what these blindspots are so that your company can avoid them.TRANSCRIPT
Fatal Illusions: Blindspots That Can Kill Your Business
William W. BayerLighthouse Growth Resources
Copyright 2009-2013 William W Bayer www.billbayer.net
Why do we have illusions ?Tendency to create our own “Incorrect”
realityWhy?
Avoid problems and painAvoid responsibilityAvoid conflictScared of changes in responsibilityReluctance to accept new data
Copyright 2009-2013 William W Bayer www.billbayer.net
The Factual Results Illusion:“We know that we are succeeding-look at these results!”
Factual results or tribal knowledge?Do you objectively measure results?Do you have weekly or monthly key indicator
reporting?Do you know people are working on the right
thing?Are you verifying priorities – every day with
everyone? Copyright 2009-2013 William W Bayer www.billbayer.net
The Bank-Partner Illusion:“Our bank is like our partner”
Is your bank still a bank?What are the terms of your LOC?Have your financials deteriorated?Has your bank changed owners?Have you tested your bank lately?Are you friendly with your bank
officer?Copyright 2009-2013 William W Bayer
www.billbayer.net
Ease of Change Illusion:“Change is easy; otherwise it isn’t worth it.”
Don’t over-estimate your organization’s capacity to change
Avoid being imprisoned by your own outdated vision of your company and your industry
True change affects peopleIf it is easy, it isn’t change
Copyright 2009-2013 William W Bayer www.billbayer.net
The Same Page Illusion:“Everyone knows what’s important”Set clear prioritiesDo a little less a little betterEstablish focus on three prioritiesRealize: lower level employees
have limited range for focusVerify priorities frequently
Copyright 2009-2013 William W Bayer www.billbayer.net
The Irreplaceable Loyalty Illusion:“She may not be an effective employee, but she’s loyal.”
The corporate baloneyThe Sales Prevention DepartmentLoyal to you, but destroying the
business and the teamEnforcing policy instead of what is
rightCopyright 2009-2013 William W Bayer
www.billbayer.net
The Prima Donna Illusion:“He’s a pain to work with, but he’s our best employee. We can’t afford to lose him.”
Great top-line value – But at what cost?
The impact of special rules for oneBeing held hostage by employees“It’s my account” (not the
Company’s)We’ll lose the customer if …
Copyright 2009-2013 William W Bayer www.billbayer.net
Large Customer Loyalty Illusion:“We must cater to the needs of our largest customer.”
Validate profitability – Is margin intact?
What are the real costs of providing exceptional service?
Consider opportunity costAnalyze for possible structural
degradation of your fundamental business as result of catering to a large low margin customer
Copyright 2009-2013 William W Bayer www.billbayer.net
The Cost Saving Illusion:“Sometimes saving money costs a little”
It’s spending dollars to save nickelsMatch the solution to the size of the
problemAvoid fire drillsDon’t consume resources on well
promoted triviaReign in the anal-retentiveValue = Benefit > Cost X 3Copyright 2009-2013 William W Bayer
www.billbayer.net
The Busy-ness Illusion:“We’re all busy, therefore we are be productive”
Activity = Cost, not value, & not profitMeasure results, not profitabilityWorking on the wrong things does not create
value.Reward productivity, not busy-nessValuable activities create value for customers
Copyright 2009-2013 William W Bayer www.billbayer.net
The Comparison Illusion – “We’re better than Company X”
Compared to industry leader or cellar dweller?
Is your industry healthy?Has the structure of your industry changed?Are your competitors profitable?
Copyright 2009-2013 William W Bayer www.billbayer.net
The Good People Success Illusion:“Good people can succeed in any job”
People succeed (and enjoy) jobs that match their strengths
Moving good people to a job that is a bad fit will not work for long
Success = Talent + Passion
Copyright 2009-2013 William W Bayer www.billbayer.net
The No-Communication Illusion:“They don’t need to know that”In the absence of information, people fill in
their own blanksCorollary – They always fill them in the worst
possible way.Not sharing information de-values key
employees and long term employeesAlways communicate changes carefully
Copyright 2009-2013 William W Bayer www.billbayer.net
The No-Incentive Illusion: “Our employees don’t need incentives-at least they have jobs!”Well constructed incentives are valuable –
even in a weak economy.Link incentives specifically to measurable and
relevant individual deliverablesGlobal incentives – profit sharing and year
end bonuses are a waste
Copyright 2009-2013 William W Bayer www.billbayer.net
The Organic Teamwork Illusion:“Give people a chance and they will work together well”Teamwork never happens by chanceTeamwork requires leadershipTeamwork requires pro-active actionEmployees become more self-oriented all the
time – making teamwork harder to achieve
Copyright 2009-2013 William W Bayer www.billbayer.net