Tag Archives: weaknesses

What’s So Special about You?

I could not have anticipated that a taunt I first heard in grammar school would be a question I’d later ask business owners in all seriousness. Businesses are most successful when they build upon their unique strengths and take appropriate steps to mitigate critical weaknesses.  But recognizing your strengths and weaknesses is easier said than done. Here is an overview.

While it would be impossible to enumerate all attributes an organization might have, the following list will get you started.  As you consider your organization’s strengths and weaknesses, please be absolutely honest.  It’s easy to think only in positive terms, to see only potential or to obsess over weaknesses. However, giving in to one-sided thinking will not result in actionable information. Better to recognize any areas that need attention as soon as possible so that you can address them before they negatively impact your bottom line. On the flip side, don’t fail to recognize where your organization shines. This may lead to discovery of competitive advantages that will help your business to leap ahead.

Expertise/industry savvy and contacts

  • Unique capabilities – what can your organization can do/supply that is not available from competitors?
  • Experience/knowledge of principals and staff – do you offer customers an extraordinary level of expertise or experience?
  • Industry ties – do you belong to and actively participate in industry associations?
  • Influencers – do you regularly engage in two-way communication with industry influencers?
  • Media – would it be likely for the media to contact you were there to be a breaking story in your industry?

Customer base

  • Customer satisfaction/fans – do your customers refer or recommend you to potential new customers?
  • Loyalty – do you receive repeat orders from customers?
  • Diversification – do you have multiple customers in a variety of industries?
  • Are your customers financially stable?
  • Do your customers expect you to compete on price alone?

People

  • Leadership and top managers – is your leadership team complete, respected, knowledgeable and well connected?
  • Overall, do employees have all the skills and qualifications they need?
    • Skill level – does your organization ensure that staff is well trained, up-to-date and knowledgeable?
    • Dedication to quality and customer service – is your organization’s definition of quality and customer service measurable, clear to all members of your staff and considered in every customer interaction?
    • Licenses, insurance and certifications – do you/your staff have all relevant licenses, insurance and certifications?
  • Succession plan/pipeline – do you have a clear succession plan and the means to find and attract sufficient new employees?

Suppliers/raw materials

  • Stable – are your suppliers financially stable?
  • Raw materials – is it likely there will be an adequate supply of raw materials available at a reasonable price?
  • Bench strength – do you have multiple suppliers of key goods or raw materials?

Products/services

  • Are your products and services distinct from those of your competitors?
  • Do you have exclusive agreements to sell products and services in your market?
  • Do you offer a complementary mix of products and services not found at the competition?
  • Is demand for your products and services seasonal and/or tied to events beyond your control? (Weather, subsidies, tax incentives, etc.)

Intellectual property

  • Patents/trademarks – do you own and protect patents and trademarks?
  • Marketing collateral – does your marketing collateral engage and inform your customers base?

Infrastructure

  • Convenience to customers/suppliers – are your organization’s locations accessible to both customers and suppliers?
  • Traffic – if it’s relevant, are you located in a space (either physical or virtual) where your customers are likely to congregate?
  • Visibility – is your organization easy and convenient to find both physically and virtually?
  • Processes and procedures – do you have efficient, documented processes and procedures?
  • Systems – do your systems (computer, telephone, forms, inventory management, etc.) effectively support customers and staff?
  • Technology – do you have all of the industry-specific tools and technology you need to compete for business?
  • Overhead – is your operation efficient?

Financial

  • Financial strength – is your organization on sound financial footing?
  • Banking relationships/access to credit – do you have on-going positive relationships with one or more banks that would be willing to extend credit?
  • Positive cash flow – overall, is your cash flow positive?
  • Terms – are you offered and do you take advantage of suppliers’ best possible terms?

Culture

Culture significantly influences an organization’s ability to attract and retain employees, respond to problems, and to provide a great customer experience. For more on this, read Karen Utgoff’s recent post on looking at your organization’s culture with fresh eyes.

It is often illuminating to involve customers, suppliers and staff in exploring many of the questions above. You can learn a lot by understanding their views. Also, what might have been accurate in the past may not always be true. Support your assessment with facts whenever you can. Refresh this information periodically, more often if your circumstances (market, customers, etc.) are in flux.

Understanding your organization’s strengths and weaknesses will give you a better understanding of internal capabilities. To formulate a strategy, these need to be considered in the context of the external environment. For more on doing so, see this post by Karen Utgoff on sorting out opportunities and threats.

© Copyright 2014 Laurie Breitner. All rights reserved.

Want to Be a More Effective Decision Maker? Beware of Blind Spots and Biases that Can Interfere

By Karen Utgoff

In business and driving, beware of what you can't see. Photo: K. Utgoff

In business and driving, beware of what you can’t see. Photo: K. Utgoff

Business decisions are made every day and mistakes are inevitable — none of us can read minds, know the future, or wait for perfect information. However, it’s sad and unnecessarily costly when a mistake is preventable.

Wouldn’t it be wonderful if you could reduce avoidable errors at little or no cost? My experience tells me that many business owners, executives and managers could do just that if only they were more aware of personal tendencies that influence their decisions as well as vulnerabilities we all have that stem from the way we (that is, our brains) perceive and analyze situations and information. Cultivating this self-awareness is one of the lowest cost — but most challenging — ways I know to become a more effective decision-maker.

Perception and perspective are tricky things. Optical illusions exploit the way our brains work, causing us to misperceive objects and images. We often consider these to be tricks that aren’t very important to daily life, yet there is at least one major exception: the passenger side mirrors on our automobiles, which come with an engraved warning reminding us that “Objects in the mirror are closer than they appear.” In addition, to use this mirror effectively a driver must be aware of the blind spot. Both the blind spot and misperceiving distance are problems because (when we are in the driver’s seat) our brains are quick to misinterpret the image in the mirror as physical reality.

In similar ways, business decisions are vulnerable to misperceptions or skewed perspectives. Vulnerabilities generally fall into two categories: those everyone shares as part of the human condition and those that are particular to an individual. As with the side mirror, being aware is a critical first step to minimizing their impact.

No one is perfect; individual inclinations and gaps sway all of us. The ability to be self-critical is key. Here are some questions intended to provoke useful self-examination:

  • Do you tend to be overly optimistic or pessimistic based on recent experience?
  • Do you defer to experts or discount their opinions completely?
  • Do you balance intuition and evidence or automatically favor one over the other?
  • Do you probe for information and knowledge or make do with whatever is available?
  • Do you actively seek alternative views or protect yourself from being challenged?
  • Do you tend to make decisions too early or delay until the situation is critical?
  • Do you fear scrutiny or embrace it?
  • Do you change your mind too easily in the face of new information or resist too much?

Individual inclinations and tendencies can and do negatively impact decision-making.  None of us can escape entirely but self-awareness can help balance and counterbalance our weaknesses while making the most of our strengths.

It is also important to factor in biases and blind spots that researchers have identified as hardwired into each of us. Though hard to counteract, there are steps that can help to manage these human factors. Robert Wolf provides an excellent starting point in his post on “How to Minimize Your Biases When Making Decisions” for the HBR Blog Network. In my consulting practice I have seen these biases reinforced or mitigated by an individual’s personality and decision-making patterns; so be mindful of their interplay.

Another human factor to consider is willful blindness. This phenomenon is not confined to business decisions but can have a devastating effect on an organization in which it occurs. Especially insidious is that blind spots render issues that require attention or decisions invisible until they become crises, sometimes presenting an existential threat to the organization or inflicting terrible harm on others. To learn more, listen to Margaret Heffernan’s TED talk on the topic or read her article on “Willful blindness: When a leader turns a blind eye” in the Ivey Business Journal online.

While the focus of this post is on individual decision makers, it applies to teams as well. Startup ventures, intrapreneurial teams, and top management at organizations (large and small) are all susceptible. As with individuals, teams have their own vulnerabilities. Teams that are comfortable with internal conflict and seek information from divergent sources may be less susceptible to willful blindness but may have difficulty absorbing the final decision when it’s time to do so. Alternatively, the danger of willful blindness or confirmation bias may increase when team members are discouraged or punished for raising important concerns or contributing information.

SWOT spotHas this post convinced you that you can become a more effective decision maker? If so, use the information here to assess your own decision-making habit and patterns. Ask people you trust to level with you about your strengths and weaknesses. When you spot an opportunity to improve yourself or your team(s), remember that change is difficult and requires persistence. Progress takes time and set backs will occur. Keep at it; there is a lot to gain.

© Copyright 2013 Karen Utgoff. All rights reserved.

What’s your SWOT Spot?

By Laurie Breitner

In real estate the old saw is that the three most important things are location, location, location. In business — especially a small business — it’s focus, focus, focus. My colleague Karen Utgoff and I have been encouraging business owners to think this way for years, each from our own perspective.

Karen is a market strategist and often looks at businesses through that lens. That is, what are the opportunities and threats that could impact a business? As an operations person, I have a different viewpoint. I consider a business’ strengths and weaknesses. Of course each of us does that within the context of the business’ specific mission and target market. When we work together, we joke that I handle the S-W while she deals with the O-T. It’s our effort to bring a little humor to the topic and it usually gets a laugh.SWOT spot

So, expect to read about ways to determine and operate within your organizations’ SWOT spot — the place in your market where you can take advantage opportunities, mitigate threats, utilize your strengths and minimize your weaknesses.

 

© Copyright 2013 Laurie Breitner. All rights reserved.