Blog

As the war between Russia and Ukraine drags on, President Zelenskyy has shifted from being grateful for any military support to telling the NATO countries what he needs to repel the Russians.

Shocking things happen when the information you give isn’t what the boss happens to want to hear.

For example, I was reading an article about 2 senior Russian oil executives who have died recently of what we'll term unnatural causes.

Let’s be frank – nothing kills an organization's morale faster than making completely unrealistic claims that get your staff all revved up, only to find out you've lied and not only are they not advancing as you promised – they’re in reverse.

Do you remember the story of David and Goliath? The little kid David is given little or no chance to defeat the monster, Goliath. And, armed with nothing but a sling, David expertly lands a rock right between the eyes of Goliath and wins the day.

If the river represents cash flow to your business, what is a dam?

Simply put, the dam – and the reservoir it creates - represents cash in the bank, also known as retained earnings.

In my relentless search for I don't know what, I found an article in the December 1, 2008 edition of Nation's Restaurant News, the trade journal of the restaurant industry, headlined: "Operators Bank On Profit And Loss Scrutiny To Stay Afloat." It made me laugh out loud. The article states that "maximizing the profit and loss statement has become a mantra for restaurant operators during the current economic downturn."

This is then presented as some sort of horrific torture imposed on the owners by a vicious economy. What is not said, but should be, is that maximizing profit shouldn't be paid attention to only after dire economic conditions occur, to be given temporary priority, only until 'things get better.' It's supposed to be what anybody responsible for operating a business does everyday. Including what's then described in the article: ferreting out and cutting wasteful spending, controlling labor and administrative costs; creating products, offers and price propositions customers really want. Any business owner complaining about having to attend to these priorities because of a recession is a moron, and any trade-journal writer taking them seriously is dumber than a sandbox.

Success Needs Sufficient Capital Resources
To succeed in business, you need sufficient capital resources. In fact, it is said that the number one source of failure for small business is running out of money.

If you do not have a realistic assessment of the money that is needed to implement your business plan, you run the risk of running out of money. If you run out of money, your business may likely fail. Failure to have a realistic understanding of the amount of money that is required for the business overall and to implement certain new ventures, particularly, can lead to ruin.

Failing to have adequate money for the business can be a mistake.

1 Failing to Employ a Structured Decision Process
Decisions made without a structured, systematic process may be less than optimal.

Business school courses, academic textbooks, and training programs concerning decision making provide structured approaches, decision models, and tips to make better decisions. The classic approach involves defining the problem, identifying alternatives, undertaking quantitative analyses and qualitative assessments, exploring the risks, and then choosing the best course of action. While a structured decision making process is central to management, too often that approach is ignored.

Failing to employ a structured decision process can be a mistake.