fatal illusions: 14 blindspots that can kill your business

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


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Avoid being imprisoned by your own outdated vision of your company and your industry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


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


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 …


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


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


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?


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


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


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


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
