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Implementing AI Is All About Strategy

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Despite the frequent pessimistic opinions that dominate the news media, the early 21st century business climate does not appear to be substantially different from the prevailing business climate in the mid to late 20th century. Moreover, numerous global wars caused incalculable economic impact and population disruption in previous centuries, during the 1600s – 1800s (Africa, Europe, North America, South America, Caribbean, South Pacific) and the 1910s – 1970s (Africa, Asia, Europe, North America, South Pacific). History indicates that business conditions have never seen some rational, golden period anywhere on earth for a sustained period of documented human history.

So, figuring out how to access whatever resources that can adequately sustain life in one’s society became a hallmark of life in every century that’s hosted all forms of human life and animals as well. That drive caused men to sometimes travel hundreds of miles to prominent cities that launched what we now call major public works projects, such as the ziggurats in Mesopotamia, the Great Wall in China, the Panama Canal in Central America, the Suez Canal in Egypt and the hydroelectric dam on the Blue Nile that was completed by Ethiopia in 2025 (and has more than twice the electrical capacity of the Hoover Dam in Utah).

Economic volatility, a turbulent political landscape, populations on the move, whether motivated by money or war, are an ongoing theme in history. Technological developments, from the invention of the wheel to the invention of the telephone, the invention of the computer (the room-size originals and the personal computer) and now the rapid rise of Artificial Intelligence powered technology tools are disrupting and reshaping how business operations are carried out, in ways we may simultaneously abhor and appreciate.

Many company leaders are said to be rethinking their staffing needs and betting that AI tools can get the work done more efficiently and less expensively than their employees. The advent of online shopping, most notably since the 2020 pandemic shutdown, has resulted in store closings and sizeable lay-offs at CVS, bankruptcy filings at the august Saks Fifth Avenue and the outright closure of Forever 21, JoAnn Fabrics and Rite Aid. Bed, Bath and Beyond, which has closed nearly all of its retail locations, is attempting a come-back. The number of business leaders willing to embrace AI tools, viewing them as innovative solutions capable of performing core operational tasks more accurately, quickly and considerably less expensively than human labor, is on a steady upward trend.

Yet reality shows a different result produced by the typical outcomes associated with AI-powered tech tools. Recent research has shown that when AI-associated operational outcomes are evaluated, achieving a meaningful positive impact resulting from AI technology use is elusive. For example, research shows that 95% of generative AI pilots fail to produce measurable returns. Furthermore, while most U.S. companies are reported to be using AI, only 39% see any impact on company earnings—and the revenue increases are underwhelming. Just 4% of companies have implemented AI capabilities that consistently create the desired value. According to Gartner, fewer than half of AI-powered digital initiatives meet their business objectives.

AI implementation requires the right strategy

Business analysts say there are a number of obstacles that can undermine the plans of company leaders when they attempt to determine where and how to implement AI. A close look at outcomes data typically reveals that most organizations approach AI tools as technical upgrade solutions—they see AI as a tactical solution to a tactical objective. However, they would be much better served to recognize that AI technology is best optimized when you back up and look at the big-picture view, that is strategic, of what the process means to your company and how an AI-powered tool might enhance that process.

In other words, thinking that merely adding one or more AI tools to your existing business processes is probably not going to work. Reexamining your workflows is your best first step. Proposing ambitious transformation initiatives while critical data is locked in outdated and perhaps unusable formats will result in frustration.

Successful strategy, whether its purpose is to launch a new product line or introduce AI technology to your business operations, depends on four elements working harmoniously together—the right tools, the right internal partnerships and relevant data plus insightful interpretation of the information. Good strategy has always been a process that invites study and learning, decision-making and adjusting in response to changing conditions. Problems you encounter with AI implementation might not indicate a problem with your AI-powered tool, but the lack of a good strategy.

AI tools that create value

So how can you figure out where AI-powered technology can do the most good for your business? That is among the most decisive questions you can address this year. Just always keep at top of mind that any AI tools you plan to introduce must deliver measurable positive impact to core business processes and improve decision-making and long-range planning.

  • Marketing and sales (Lead generation, marketing content creation, audience segmentation, targeted advertising)
  • Customer service (chatbot and virtual assistant-handled queries, service personalization)
  • Data analysis and operations (predictive analysis, inventory management)
  • Finance and accounting (faster closing of monthly books, risk management, budgeting and financial planning)
  • Cybersecurity and fraud detection/prevention

Data that is AI-ready

finally, the accessibility, usability and relevance of your company data is essential to the successful implementation of AI-powered tech tools. Remember that AI is trained by the data you feed it—that’s how it models, reveals insights and drives automation. Good data ensures integrity — the proof that what a company claims also aligns with what it reports and does. Garbage in, garbage out, as you already know.

Frequently, critical data might be housed—trapped—in floppy disks or hard-copy documents that, obviously, no AI-powered tool can access. Incorporating AI tools into your organization—and, really, even if you don’t choose an AI solution at this time—business leaders are advised that connecting financial, risk and sustainability data is vital in so many ways. You may have to do the grunt work of updating your data by formatting in 21st cloud century storage, in Excel or Google Docs. Both systems offer cloud-based storage solutions that allow you to upload and manage their documents and spreadsheets online.

With the right tools, partnerships and data infrastructure, strategy becomes dynamic. The decisions are yours to make, but your AI technology tools will show options and comparisons, warn of risks early on, point out emerging trends and recommend new directions based on real-time insights.

Thanks for reading,

Kim

Image: ©U.S. Army (2024)

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Meeting Primer: Make Every Minute Matter

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So you’ve decided to call a meeting. Maybe you and your client’s team are due for an update/ check-in; or has an unexpected glitch created a project roadblock that demands a problem-solving strategy? Let’s look at the bright side—-has what appears to be an opportunity revealed itself and the purpose of your meeting is to verify that the opportunity is not a mirage and deciding how to proceed?

Oftentimes, a meeting means a decision must be made. When it comes to meetings one thing is certain—the purpose is always about finding the way forward, where you’re going and how you’ll get there. Moreover, there are always action items to follow-up on.

Meetings have a checkered history; there is an unfortunate tendency to deviate from the agenda and get lost in the weeds. Salvation is within reach, however, when the convener—you!—thinks through the key components of the meeting so that you will enable the meeting to both fulfill its purpose and leave the participants feeling energized, engaged and effective.

Agenda

It is your job as meeting convener to create the conditions for a successful meeting. Begin by identifying the purpose of your meeting—must potential solutions to a problem be explored, or must the team determine strategies that will advance a certain goal? Once the meeting purpose is confirmed, the convener will then consider which information and/or actions will be needed to support the meeting purpose and inform the creation of the meeting agenda—which will be the meeting journey roadmap. To create the agenda, allow yourself to do some some free association thinking to get a mental picture of what must be discussed and resolved.

Attendance

Next, decide who should attend, as well as those who perhaps for political reasons you would be wise to invite. There may be certain stakeholders or power brokers who must be in the room (or in virtual attendance), whether you want them there or not. Those on the must-invite list could be a net-positive, however; you may be able to convince one of the VIP attendees to troubleshoot, green-light, recruit allies, approve funding, or somehow advance your vision of what needs to happen.

Following the list of heavy weights, you’ll be free to draw up a list of those who should attend, who you want to attend, because they have the subject expertise and insight that will benefit the meeting purpose. Finally, there are those you should ask to attend because they know how to get things done and can be trusted to carry out important action items—and just as valuable, if there’s a vote taken, they’re with you!

Bear in mind that there may be stakeholders /VIPs who simply appreciate receiving info regarding the outcome of your meeting, but they do not need or want to attend. If someone doesn’t need to be there, offer them alternatives, such as asking them for pre-meeting input or sending them a follow-up meeting summary. Fewer attendees mean more-focused conversations—and ultimately better outcomes.

Use the “Five W’s”—who, what, where, when, and why—to generate the participant list. Who needs to be there? What, if any, special information should you bring in resources to support the conversation (meeting handouts or presentation slides? What information can drive decision-making and needs to be shared and what is just a distraction and doesn’t need to be included?

You must also consider the most inclusive and welcoming format for the meeting—in person or virtual? It’s entirely likely that your meeting will be hybrid and it will be necessary to design logistics that will make those who attend virtually feel fully present.

Engagement and participation

As you know, the best meeting outcomes are achieved when you bring together participants who have the means and motive to contribute something relevant to the proceedings. Lackluster participation in meetings weakens the result by reducing collaboration, hampering decision-making and eroding team unity. How can you encourage more fruitful engagement? Step One is to create an agenda that directs attention to the core purpose of the meeting, whether check-in, problem-solving, or decision that must be made, or opportunity to exploit.

Start by clarifying expectations for the meeting and participants by outlining some of the supportive behaviors you want to see in your meetings. For example, you might emphasize mutually supportive behaviors such as nonjudgmental communication, collaborating to tackle challenges together, sharing of resources and information. It’s also helpful to offer team members different ways to contribute—for example, allow for written input before, during, or after meetings. Giving those who are typically less vocal a structured role can help empower them to speak. When participants know that their insights and wisdom are valued, they’ll find the motivation and courage to speak up and they have the potential to perhaps bring an unexpected idea or perspective that will greatly improve the outcome and relevance of the meeting.

Finally, make every minute count and don’t run over. Set meetings for the shortest time necessary, not by default increments like 60 minutes. Honoring to the agenda and ending on time helps people sustain focus, reduces frustration and communicates to everyone that your meetings are worth attending.

Thanks for reading,

Kim

Image: ©Siphosethu Fanti/peopleimages.com for Adobe Stock

Professional Development , , Leave a comment

Summer Reading List 2023

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There are so many reasons for you to sit down and read a book. Reading is a pleasure, an adventure and an education. Books expand your horizons, awaken your creativity and stimulate your intellect. Reading shows you exciting possibilities, warns you with cautionary tales, challenges and enlightens you with new information and introduces you to alternative points of view. Books open whole new worlds for you.

Reading is also good business, whether you own the enterprise, preside in the C-Suite, or hustle in an entry level position, from barista to call center help desk. Reading is integral to building and maintaining the scope and value of your skill set and for that reason, reading books is integral to professional development. The books you read—in particular business books, but might include history, philosophy, psychology, semiotics, or other disciplines—can strengthen your analytical, problem-solving and creative outside-the-box thinking skills.

No matter how successful you’ve been in your business or career, no matter the educational degrees and professional certifications you’ve earned, regardless how amazing the team you collaborate with, you are destined to encounter challenges as you progress through your working life. You may find the answer to your dilemma while reading a book. Whether your book describes the grit and timing needed to launch a business, provides insight into how you can expand and grow your enterprise, or explores the art of leading or managing teams or organizations, there are books that will teach you to recognize and overcome obstacles and coax the best performance from your team and yourself.

The books included here are appropriate for every stage of your working life. The authors are people who’ve experienced obstacles in the business world and lived to tell the tales. Who better to learn from than someone who has already conquered the difficult predicament you’re facing now, or will encounter in the future?

Start With Why Simon Sinek (2009)

Sinek explores a way of thinking, acting and communicating that cultivates your ability to rally and inspire those with whom you work and interact. A defining behavior of that charismatic quality is demonstrated when you ask yourself (and your collaborators) why? When there are important choices or decisions to make, starting with the deceptively simple question why—-why is this matter important? why should we attempt to resolve the issue in this way?—-has the potential to put you on a path that will result in better answers, better strategies and, by extension, will allow you to achieve more fulfillment in your work and your life.

Leaders in organizations who have the courage to ask why—and question common assumptions, behaviors and practices—typically thrive even when others around them are failing. Often, their why is well articulated and forms part of their identity as it informs the reasons that people do the things that they do. Great leaders and visionaries have a powerful why and they invite others to explore it with them.

https://www.barnesandnoble.com/w/start-with-why-simon-sinek/1016513563

The Personal MBA Josh Kaufman (2010)

The Personal MBA delivers need-to-know information from that which MBA programs consider fundamental, from the five elements of business to the 10 ways to evaluate a potential target market and in the process, the book saves you the time and money involved in earning the formal degree. The Personal MBA breaks it down and helps you understand functions that are essential to business success—from finance to sales, marketing to operations, to the nuances of psychology, motivation and teamwork, to creating systems. Kaufman distills everything you need to know to transform your business, or your career.

https://www.barnesandnoble.com/w/personal-mba-josh-kaufman/1102823220

The Power of Geography Tim Marshall (2021)

Marshall explores 10 regions that are positioned to shape global politics in a new age of great-power rivalry—Australia, Iran, Saudi Arabia, the UK, Greece, Turkey, the Sahel, Ethiopia, Spain and (surprise!) Space. Learn why Europe’s next refugee crisis is perilously closer than it appears now. Examine the roots of the tragic instability that roils the Sahel; understand why Middle Eastern nations would be wise to look beyond oil to secure their future; explore why western Asia is one of the most volatile flashpoints of the 21st century; and contemplate why Earth’s atmosphere is set to become the world’s next battleground.

https://www.simonandschuster.com/books/The-Power-of-Geography/Tim-Marshall/9781982178635

Thinking the Future (2021) Clem Sunter and Mitch Ilbury

Think about it—every decision you make impacts the future! We constantly make choices that affect the next week, next year or upcoming decade. The problem is, you can be blinded by what you want or expect the future to be. Scenario planning experts Clem Sunter and Mitch Ilbury posit that the futurist’s art of decision-making, where the flexibility of thinking like a canny fox plays a key role, will be a deciding factor in successfully adapting to a complex and interconnected world.

https://www.penguinrandomhouse.co.za/book/thinking-future/9781776096299

How Big Things Get Done (2023) Bent Flyvbjerg and Dan Gardner

Understanding what distinguishes triumphs from failures has been the life’s work of Oxford professor Bent Flyvbjerg, who’s often called “the world’s leading mega-project expert.” In How Big Things Get Done, the author identifies common errors in judgment and decision-making that cause projects, big or small, to fail.

Happily, Flyvbjerg also shares research-based principles that will make your projects succeed. The book includes numerous helpful and vivid examples, ranging from the building of the Sydney Opera House, to a home renovation in Brooklyn gone awry.

https://www.barnesandnoble.com/w/how-big-things-get-done-bent-flyvbjerg/1141634446

Traction: Get a Grip on Your Business (2007) Gino Wickman
Don’t let common problems and frustrations overwhelm you and your business entity. In this book, you’ll learn the secrets of strengthening the Six Key Components of your business. You’ll discover simple yet powerful ways to run your company that will give you and your leadership team more focus, more growth, improved outcomes and more enjoyment.

https://books.google.com/books/about/Traction.html?id=VVDZCQAAQBAJ

Influence: The Psychology of Persuasion (1984) Robert Cialdini

The author cogently explains the psychology of why people say “yes”—and how to apply these understandings. You’ll learn the six universal principles, how to use them to become a skilled persuader and how to defend yourself against them. The principles apply to readers at every stage of your career journey. Influence will move you toward profound personal change and act as a catalyst for your success.

https://www.goodreads.com/book/show/28815.Influence

Your Next Five Moves: Master the Art of Business Strategy (2020) Patrick Bet-David

From the creator of Valuetainment, the #1 YouTube channel for entrepreneurs, is a practical and effective guide to thinking more clearly and achieving your most ambitious professional goals. Combining these principles and revelations drawn from Bet-David’s rise to successful CEO, the book is a must-read for any serious executive, strategist, or entrepreneur.

https://www.barnesandnoble.com/w/your-next-five-moves-patrick-bet-david/1136404932

Never Split the Difference: Negotiating As If Your Life Depended On It (2016) Chrisopher Vos, Tahl Raz

Negotiations take place in many different sectors of life, such as politics and business, and also in some critical events, most dramatically demonstrated by hostage situations. The book is a guide to the wisest behaviors to exhibit when stressful situations develop, whether that involves the need for negotiation techniques in hostage situations or in business. The authors describe what to do, questions to ask and how to react in situations that require negotiation.

Without question, Never Split the Difference can teach you a new and useful competency. Raz and Vos offer unique perspectives that will improve anyone’s negotiations skills, from novice to advanced.

https://www.barnesandnoble.com/w/never-split-the-difference-christopher-voss/1122714695

Freelance Your Way to Freedom (2022) Alexandra Fasulo

Freelancing phenomenon Alex Fasulo delivers a practical, step-by-step guide to navigating the potential and perils of launching your Solopreneur side hustle. The author draws on her experience of scaling a $36,000/year Fiverr gig into a million-dollar enterprise. She explains how to manage those critical moments in business when decisions need to be made quickly and without warning.

In the book, you’ll find actionable tips and hands-on examples to make the gig economy work for you. The book is a must-have for Freelancers, Solopreneurs and Entrepreneurs, as well as anyone who participates or is interested in the future of work.

https://www.barnesandnoble.com/w/freelance-your-way-to-freedom-alexandra-fasulo/1141301804

Happy 4th of July to my American readers! To all my readers, thanks for reading. I appreciate.

Kim

Image: Johann Hamza (1850-1927, Austria) A Gentleman Reading in the Library

Professional Development , Leave a comment

Bad Decisions: Or, Why We Screw Up

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Research has shown that every day, we make 2000 decisions, i.e. choices, by another name. Most of our decisions are minor and we make them quickly, almost without thinking. We decide what to wear to work in the morning, we choose whether to eat lunch now or in 30 minutes.

But a select few of our decisions have serious consequences and for that reason they demand serious thought, if not actual research. The choices we make affect our health, safety, finances, relationships, our time and our reputation. Ultimately, our decisions define our lives. Consistently making good decisions can be considered among the best things we can do for ourselves, in both our personal and professional lives. 

Now when we make a decision, we do not always have all of the information that we’d like to have. Sometimes, what one could reasonably expect to be a sound decision turns out to be less than positive because of factors that were unknown when the decision was made.

According to Michael Erwin, CEO of the not-for-profit organization The Character & Leadership Center, U.S. Army Reserves Lt. Colonel, Asst. Professor in Leadership and Psychology at the U.S. Military Academy /West Point and author of Lead Yourself First (2006), those faced with an important decision should be mindful of the following conditions, which are capable of undermining good decision-making:

Decision fatigue

With so many decisions to make, especially those that will have a big impact on our own lives or the lives of others, it’s almost inevitable to avoid decision fatigue. To counter it, identify the most important decisions you need to make and arrange to make them when your energy levels are highest.

Social Psychologist Roy Bauminster studied mental discipline at Case Western Reserve University in Cleveland, OH and at Florida State University in Tallahassee.  His work indicates that it’s best to make important decisions in the morning after eating a light, nutritious breakfast. Our brains derive energy from healthy food and that helps us to comprehend and value long-term prospects and bolsters decision-making ability.  In the morning we have enough willpower to exercise the self-control needed for making important strategic or financial decisions.

Bauminster advises that we tackle big decisions first, before we have to make numerous smaller decisions that will sap energy and lead to decision fatigue.  So do your best to schedule client meetings for early in the day, before late afternoon, whenever possible. Write and pitch proposals early in the day as well.

According to the researcher Martin Hilbert, Professor of Communication at the University of California at Davis and instructor of the seminar Information and Communication Technology: A Venture into Applied Data Science, our brains process about five times the amount of information today as we processed in 1986. Consequently, many of us live in a continuous state of distraction and we struggle to focus. Ongoing distractions are detrimental to sleep, productivity, concentration and, yes, decision-making.

To counter this, schedule time each day to go offline and step away from email, social media, news and the onslaught of the Information Age. It’s easier said than done, but do-able if you make it a priority.

Insufficient information

Researchers at Northwestern University’s Kellogg School of Management in Evanston, IL found that in a typical meeting, an average of three people do 70% of the talking. As author Susan Cain describes in her book Quiet: The Power of Introverts (2012), many introverts are reluctant to speak up in meetings until they know precisely what they want to say. Unfortunately, introverts fairly often feel blocked by overly expressive extroverts and they keep their insights to themselves. As a result, decision-makers might ignore or gloss over certain possible answers or options, perhaps due to the bias of habit (“we’ve never done that before”).

Meeting conveners can temper this inclination by sending out a meeting agenda 24 hours in advance, to give everyone time to think about their questions and suggestions regarding the agenda items. Furthermore, it is incumbent upon the convener to create an environment that encourages all attendees (whether they participate physically or virtually) to contribute— i.e., speak up and share information and when necessary, persuade others to examine and question their assumptions.

Introverts often ask the right questions, or contribute great ideas and relevant information to their teams, because while the extroverts are busy talking over one another and doing whatever possible to monopolize the conversation, introverts are quietly listening and thinking, questioning and analyzing. Decision-makers can greatly benefit from input supplied by the quiet members of their team.

Multi-tasking

There are few jobs left in the world today that don’t require at least some multi-tasking. While that’s the reality, research pioneered in 2009 by Earl Miller, Professor of Neuroscience at the Massachusetts Institute of Technology, showed that performance, including productivity and effective decision-making, can be diminished by as much as 40% when we attempt to focus on two (or more) cognitive tasks simultaneously. When called to make an important decision, set aside a block of time so that you can devote the required thought and focus to the question (or task).

Analysis Paralysis

The Information Age has deluged us with an abundance of information—Big Data, algorithms and a vast array of metrics— and there’s almost no end to the amount of information one can access. However, more information doesn’t necessarily lead to the best result.

Information overload can hinder the decision-making process; the more information there is to consider, the longer it takes to make the decision. Which data thread should we follow? Analysis-Paralysis, which is an expression of confusion and fear, can set in.

Because time is often a factor in big decisions, knowing when to draw the line on data gathering and move forward to finalizing your decision is a valuable leadership skill. While the decision-making process should be thorough, the best way to make good decisions is not to continually search for more information but instead to understand what information will be useful, review the selected data, set a decision-making deadline and adhere to it.

Emotions

Strong emotions have the power to impair one’s ability to make sound decisions and it is advisable to delay important decisions when one is angry, frustrated, excited, or even very happy. May I also include fatigue, inebriation, illness, pain and hunger in this category?

During those times, one’s ability to reason and take a measured and balanced view of an important question or unfolding events usually disappears. When blood sugar drops, a trip to the grocery store often results in a shopping basket filled with the wrong foods. Sending an email when angry or frustrated can present a danger to one’s career or business, since the temptation to use provocative or even harsh language could be strong and the ability to self-censor may be low. Likewise, inebriation, fatigue, illness and pain may potentially diminish one’s ability to think clearly and reach a rational decision about anything of importance.

When faced with an important decision while in the grip of strong emotions or similar feelings, honor your emotional state and focus on self-control. Give yourself time to calm down and gain perspective on what is happening. Forgive yourself, postpone your response, breathe and take a time-out. Have a cup of tea. If possible, you might also take a nap or a shower. Resist the temptation to respond to people or make decisions while you’re flustered or agitated.

Thanks for reading,

Kim

Image: Sir Peter Paul Rubens (Belgium, June 1577 – May 1640) The Fall of Man, Adam and Eve 1628-1629, courtesy of The Prado Museum, Madrid

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How to Make Better Decisions

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Making good decisions is a crucial life skill and a defining component of success in life and business but so many times we wonder what the best course of action might be. Theoretically, we make decisions after evaluating the available information, weighing the potential impact of our actions (or inaction) and determining what appears to be the best option. But truth be told, we rarely have all the information that could guide us as we decide and as a result, decision-making is loaded with unknowns. Not only that, our perception of the best course of action is inevitably shaped by our past experiences and personal biases.

Fortunately, methods exist that have been designed to limit some percentage of the unknowns and biases inherent in decision-making. One approach, a type of strategic planning known as scenario planning, has been attributed to 1950s era executives at the RAND Corporation.

In its most simplified form, scenario planning involves imagining three possible future environments for each decision alternative: a future where things get better, a future where things get worse and a future where they stay about the same. Scenario planning also allows decision-makers to factor in variables: what you know, what you don’t know and what you don’t know you don’t know.

Scenario planning requires decision-makers (and strategic planning teams) to think outside the box and imagine what might happen if a certain road is taken and then create a story line that “paints a picture” of what your life or business will look like while on that road.

When faced with an important decision, we all tell ourselves a story that describes an idealized version of what our life will look like if we do (or avoid) a certain thing. For example, if you’re thinking of changing careers, you tell yourself a story of how much more satisfying and/or lucrative work will become if you make the change. If you’re considering a move to a warmer climate because you’ve had enough of winter, your story focuses on the avoidance of snow and ice and the warm, soft breezes that await in the new location.

If you include a scenario planning exercise in your decision process, you’ll be encouraged to fill in a few more potentially relevant details that go beyond the rosy picture that you paint as you daydream about new possibilities. If you’re seriously considering a job change, scenario planning will guide you to fully investigate, among other things, the credentials or professional experience you must earn to successfully change careers and how much time and money that will cost you. The ROI of the career change is another component you’ll examine as you objectively evaluate your likely job prospects and reasonable expectations for professional advancement and earning ability.

In addition to scenario planning, there is also a clever decision-making support tactic called the “pre-mortem” that was developed by psychologist Gary Klein, Ph.D. and his team in 1989. Inspired by the post mortem, when a coroner or hospital pathologist performs an autopsy on the deceased to determine the cause of death, Klein’s pre-mortem technique flips the script. “Our exercise,” Dr. Klein explains, “is to ask decision-makers to imagine that it is months into the future and that their plan has been carried out—-and it has failed. That is all they know; they have to explain why they think it failed.”

So you think you want to move to Florida? OK, so you move down in early November, just ahead of winter. You’ve got no snow to shovel and that’s a relief. But there are alligators on the golf course and you know, those things eat pets and people. You’ve been down there for 8 months and you’ve had to call an exterminator 3 times because there are these scary bugs crawling through your house. Not only that, but Christmas didn’t feel like Christmas when the temperature was 80 degrees. Oh, and in the winter everyone you know begged to stay with you for a week so they could escape the snow and ice but you were in no mood to entertain people because your vacation is scheduled for August. Maybe this move was not the greatest choice? The pre-mortem will make you think about many potential downsides to your decision and help you understand if you can live with the fallout.

Klein attests that the pre-mortem has proved to be a much more effective way to recognize the lurking flaws in a decision. Magical thinking, from groupthink to confirmation bias, blinds us to potential pitfalls once we’ve become attached to a decision. By forcing ourselves to imagine scenarios where a decision turned out to be disastrous, we can discover the holes in the plan.

Eventually you must pull the trigger and commit to a decision. In some cases, working through the initial phases of decision-making will lead to an obvious choice. But if a decision you can accept still seems unattainable, the final phase can be completed with an old-school pros and cons list. What have you got to lose?

Thanks for reading,
Kim

Image: Paul Gauguin (June 7, 1848 – May 8, 1903) detail of “Where Do We Come From? What Are We? Where Are We Going?” (1978-98) courtesy of the Museum of Fine Arts, Boston

Marketing , , , Leave a comment

Market Research Matters

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“If you build it, they will come” is a myth. When evaluating the likely prospects of a business venture, new product or service, or entrance into a new market, good market research is your non-negotiable Step One.  The ability to create and sustain profitability must be demonstrated up front, in advance of committing time and money to its launch.  The only way to reliably predict whether your shiny new idea has broad appeal is to carefully research the marketplace and examine the story that emerges.  The good news is that if you are onto something, market research will help you define the size and potential of the market; decide how and when to enter it; reveal how target customers prefer the product or service to be described, packaged and delivered; the acceptable price range; and show you how to achieve market penetration and profitability goals faster.

Many decision-makers are uncertain as to the type of data that is relevant and the advent of big data has unfortunately complicated matters.  There is copious data available, but what will help your team to make the best decision?  Dionne McPhatter is a market research guru and co-founder of The Strategy Collective, a New York City and Los Angeles marketing firm that builds custom analytics that help clients better understand their customers and make more informed business decisions.  McPhatter  recommends that decision-makers identify what is called in market research circles the “path to purchase” and arrange for the product or service to touch as many “landmarks” as possible.

Some relevant data is free, or inexpensive.  Google Trends is free and a decent place to start your search and learn how many people in your city last year searched key words associated with the product or service (I found the now-defunct Google Wonder Wheel far superior, however).  Learning about competitors who provide your service, or something similar or complementary to it, is also revealing.  Tour a few of their websites and figure out business models and marketing messages.  If you are thinking about launching a business, you will write a business plan and do lots of research.  Contact your local library to learn about business reference material such as industry magazines and demographic information.

Further, there is value in spending some money and visiting professional organization meetings and attending conferences, so that you can meet prospective clients and learn the expectations and value they place on your product or service.  Listen and learn and discreetly take notes.

As you collect and examine data, a picture of the target customer groups,  competitors and the overall marketplace will begin to emerge.  The downside is, those who amass a large amount of data can become confused about what is relevant: the data threads may be too numerous to easily prioritize.  The challenge of decision-makers is to discover the relationships and triggers between the data points and eventually see what motivates clients along the path to purchase.  From there, you can confidently develop goals and objectives, strategies and action plans and a business model that will build and sustain a profitable launch.

Thanks for reading,

Kim

 

 

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Know the Stakeholders, Close the Deal

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Freelance consultants,  business owners and sales professionals rise,  fall and are measured on our ability to make sales and form strategic alliances that supply vital revenue to the businesses we represent.  To get those deals done,  we rely on stakeholders within the prospective client’s organization to advocate for us.  While there is but one signature on the proposal contract,  there are always powerful influencers whom the decision-maker is inclined to consult.  To successfully close an important deal,  you must identify the three types of stakeholders who powerfully influence important buying decisions: champions,  decision-makers and blockers.  Learn the motivations of these stakeholders and figure out what is on the line for them if the deal goes through,  or is allowed to fade away.

Step 1 is getting your foot in the door,  the first hurdle of the deal.  Step 1 requires that you enlist a project champion,  for it is s/he who invites you to pursue the deal and helps you achieve Step 2,  learning the identities of whom you must convince or outwit.  Your champion knows the decision-maker for the deal and will facilitate your access.  The champion influences the decision,  but s/he is not the decision-maker.  Some champions have relatively little power within the organization.  What they do have is the respect and the ear of the decision-maker.

Paul Weinstein,  an investor and adviser to technology,  media and entertainment companies,  notes that   “Champions understand the personalities and processes on a granular level and can navigate the culture in an organization.”  Weinstein also points out that the primary motivation of the champion is often status.  Champions want their colleagues and superiors to know that they not only can recognize an innovative opportunity when it appears,  they also have the ingenuity and power to build support and get approval.

The champion is typically at a point in his/her career where risks can be taken.  S/he is deeply invested in getting the deal signed.  The key to working effectively with the champion is to collaborate on a strategy and convince the decision-maker to green-light the proposal.

While champions are comfortable with risk,  decision-makers are invariably risk-averse.  They are C-suite executives who have the power to say yes or no to big deals and they will be held accountable for the final outcome.  Their name would be on the contract and if the deal goes sour,  it would be their reputation  (or possibly their job)  on the line. Because this individual has a lot to lose,  the anxiety level associated with the decision to give thumbs up or down will be in exact proportion to the level of expected scrutiny  (and embarrassment)  should they pass on a deal that subsequently brings big profits to a competitor,   or sign off on a deal that proves to be unfortunate.

Be aware that the decision-maker is unlikely to actually use whatever it is you’re selling,  or even know much about it.  Decision-makers focus on macro issues.  They rely on others to help them reach decisions,  because they don’t have time to immerse themselves in the details of anything other than big picture issues.  They will understand a strategic alliance,  however.

Win over your decision-maker by working with your champion to supply credible evidence that portrays the deal as a winner that will make him/her look good.   Help your champion to help the decision-maker perform due diligence by providing third-party validation,  analyses and other data that refutes all naysayers,  meaning the blockers.

We perceive blockers as haters and sometimes that is true.  Blockers seldom have the power to say yes,  but they do have the power to persuade decision-makers to say no.  Like champions,  blockers are also motivated by status.  They use the power of their relationship with and access to the decision-maker in a negative way and pour on the doubt to undermine and discredit you and your proposal.  Be advised that your blocker may be a sworn enemy of your champion and that s/he may be most willing to play dirty.  Your blocker may have a competing proposal for which s/he is champion,  his/her own bid to impress the higher-ups.

Paul Weinstein urges that you take blockers very seriously and strive to either win them over to your way of thinking or devise with your champion a method to neutralize their complaints.  If there is no personal enmity between your champion and the blocker,  then relevant and credible third-party support should rectify the problem.

In summary,  Weinstein says  “the secret to closing deals lies in mastering this balance.  If you can support your champion,  coax your blocker and  convince your decision-maker,  you’re golden.  Each of the three stakeholders brings a unique set of motivations to the table.  Your job is to understand them in order to align their interests and get the deal done.”

Thanks for reading,

Kim

 

Sales , , 1 Comment

When the Sale Slips Away

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Whether we like it or not,  Freelance consultants are salespeople.  Before we are able to ply our given trade,  we must first sell prospective clients on the idea of hiring us to do what we do,  whether it’s web design or floral design.  Steve W. Martin,  professor of Sales Strategy at University of Southern California’s Marshall School of Business,  says that those who sell should be cognizant of the lowest common denominator of decision-making: stress.

Martin observes that stress is the death of rational decision-making.  Stress shortens the attention span,  escalates mental exhaustion and typically results in analysis-paralysis.  Despite the  “buying signals”  that your prospective client may display,  more than likely s/he is experiencing fear and doubt when speaking with you about your product or services.

The stress this creates serves as the key factor in determining whether or not the deal gets done.  The most successful salespeople anticipate,  seek to identify and learn to counteract that stress and enable the sale.  Giving prospective clients information and diplomatically phrased and presented tactical advice that will help them fight against internal organization politics is a useful part of your sales strategy as well.  Here are a couple of more reasons that your sale dies on the vine.

Stalled sales cycle

Customers are more cautious than ever and moving them through the sales process can become an almost Sisyphean task.  Steve W. Martin correctly labels this common phenomenon as an internal problem that occurs when project sponsors do not know how to sell their concept to the senior executives who are able to give the  green light.   Further, certain sales cycles are prone to be lengthy in the best of circumstances.  It is too easy for your contact person/project sponsor to get distracted and turn attention toward developing issues and in the process push your sale to the back burner,  where it drifts into oblivion.  Then there is sometimes reluctance to take responsibility.  As a result,  project sponsors involve more of their co-workers in the decision process and you know what happens when there are too many cooks.

Product information and vendor selection

As we enthusiastically pitch our services,  prospective clients often wonder if we are telling the whole truth.  Compounding that is the reality  (or perception)  that differences between many products and services are almost insignificant.  Buyers are often skeptical because they may have been lied to by previous sales people.  The client may feel that 1). it is necessary to separate fact from fiction when talking with someone who is trying to sell something and 2). it’s pretty much all the same thing anyway.  Selling on service and operational efficiencies and the resulting benefits is the best antidote.  Avoid selling on price if at all possible, because it reduces you to a commodity.

When preparing for your next prospective client meeting,  keep in mind the inevitable presence of stress in your would-be client’s work environment.  They don’t quite know who or what to believe.  They’ve got co-workers,  subordinates and bosses judging them.  They are torn between acting in the best interest of the company and in the best interest of themselves.  There is also the now-prevalent belief that not spending money is best for the organization’s bottom line and no one’s reputation suffers for declining to spend money.  Making no decision just gets easier and easier.

Thanks for reading,

Kim

 

 

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Make the Right Decisions and Do the Right Thing

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I’m back with more on decision-making because in this perilous economic climate,  which shows no signs of abating,  the ability to make good decisions is so crucial.  Our survival depends upon being able to size up a situation or puzzle through a dilemma and make wise choices that will put us on the right path,  whether we are Freelancers,  business owners or employed/unemployed professionals.

But then again,  when in history has good decision-making not  been an important skill? The results of wise decisions made by the pharaohs in Egypt gave the world a magnificent civilization that thrived for 3000 years and the architectural wonders that are the Sphinx and the pyramids.  Doing business has always been about making decisions,  in ancient times and the present.

Often,  we must make decisions fast and on the fly.  Data available may be incomplete and possibly unreliable.  The ground shifts underfoot and the clock is ticking.  We’re anxious and stressed,  maybe borderline panicky.  Critical thinking is probably clouded by our biases,  born of preferences,  fears and past experiences that we pass off as intuition or gut feelings.  It’s disturbingly easy to be blind to the smart decision that is staring us in the face.

But if we intend to survive and maybe even thrive,  we have to learn to play the had that’s dealt and that means making the right decisions in a timely fashion because time is money.  We can get some much-needed assistance from author Guy Hale,  who provides useful guidance on how we can learn to make credible decisions in an imperfect world in his book  “Think Fast: Accurate Decision-Making, Problem-Solving and Planning” (2011).  Hale recommends the following:

I.  Figure things out
Analyze your situation and see the big picture.  Gain an understanding of how and why you are faced with this decision.  Did your actions,  or inaction,  bring you to this point,  or was it circumstance? Discover the root cause.

Maybe your decision is a positive one,  like you’ve been invited to work with a new client or form a strategic partnership with a colleague.  You’ll need to determine whether the arrangement is likely to be a good fit and that means weighing your options and making a decision. 

II.  Plan and act
Identify the time frame in which you must respond.  Identify potential obstacles and risks and the unknowns that may impact the outcome of the decision,  to the best of your ability.  Identify factors in your favor and how you can best employ and magnify them to your advantage.  Draw up a list of people who will become your allies,  willing to help you if needed and do the same to identify those likely to oppose you.

Use scenario planning to project possible outcomes for the decision: best-case scenario,  worse-case scenario and a couple more that split the difference.  Consider the short and long-term consequences of your choices and think also about who and what will be impacted by what you decide and how they are likely to react.

III.  Factor in Murphy’s Law
Do whatever you can to prevent events from turning sour by controlling everything that you can control,  while recognizing that some things may not go according to plan.  Have Plan B  (and maybe also Plan C)  ready to roll,  just in case.  Know that you’ve been thorough and diligent in your decision-making process and have faith.  Try to relax and roll with the punches and learn from any errors in judgment.

Thanks for reading,
Kim

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Decisions, Decisions

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We’re in business and all day long there are decisions to make.  Which business strategies look the most promising?  How should I price my services for this project?  Is the money they want to attend this conference really worth it?  If I pay this guy to make my website more interactive am I really going to get more billable hours out of it,  or will Mr. Web Developer be the only one getting paid in this deal?  Everyone in business had better have sharp decision-making skills,  because everything we do hinges on our judgment,   including how to interpret the data used in data-driven decision-making.

Eventually,  decision-making makes our brains tired.  Our thinking gets fuzzy and we might even become irrational.  We’re unable to stay focused and we make careless errors.  We sometimes do and say stupid things.  The name of this condition is called decision fatigue.  We bring it on by making too many decisions.

By the end of the day,  we’ve waded through so many choices and options that we get punch-drunk.  We don’t realize it,  but the more choices—i.e. decisions—we make throughout the day,  the more difficult it becomes for the brain’s cognitive processes to efficiently make another,  and still another,  choice.  Return emails now or at the end of the day?  Finish the report that’s due tomorrow or listen to a webinar? Green salad or fruit salad for lunch?

Energy and willpower eventually become depleted,  we lose self-control and we screw up.  We blow off the diet and the gym and dive into a bag of cookies instead.  We forget our budget and buy shoes we don’t need.  We ignore the report that’s due and read the Onion.

To get some rest,  our tired brains prod us to look for shortcuts and we become sloppy or reckless.  We may act impulsively because we don’t have the mental energy to consider the big picture and weigh the consequences of our actions.  We are prone to taking the easy way and that can mean doing nothing—which is a decision in itself,  but it doesn’t feel that way to the brain.  Of course,  avoiding a decision can cause problems in the long run but in the here and now,  we may just decide to  “table”  the decision.

But we have work to do and decisions to make,  so what should we do when we need to do the right thing?  Social psychologist Roy Bauminster studied mental discipline at Case Western Reserve University in Cleveland, OH and at Florida State University in Tallahassee, FL.  His work indicates that it’s best to make important decisions in the morning after eating a light,  nutritious breakfast.  Our brains derive energy from healthy food and that helps us to comprehend and value long-term prospects and bolsters decision-making ability.  In the morning we have enough willpower to exercise the self-control needed for making important strategic or financial decisions.

Bauminster advises that we tackle the big decisions first,  before we have to make numerous smaller decisions that will sap energy and lead to decision fatigue.  In practice,  schedule your client meetings for early in the day,  before late afternoon whenever possible.  Write and pitch proposals early in the day.

But then again…Bauminster’s findings indicate to me that it’s possible to get a proposal slipped into the budget late in the day, when your client is a bit tired and defenses are down.  You may alternatively have a good proposal rejected because the client is too tired to decide and it’s easy to turn you down.  It’s a roll of the dice,  I suppose.

Also,  where does this leave the night people?  The energy derived from nutritious food holds the key.  Bauminster found that decisions and choices made immediately before lunch were often less than optimal,  so if you’re more of a night person,  making decisions and seeing clients in the two hours after lunch may work.  Discussing business deals over lunch or dinner can also be beneficial  (for any of us, actually,  even morning people like me).  You must decide.

Thanks for reading,

Kim