Monthly Archives: September 2017

Unintended Consequences

It’s Foodie Friday and I have unintended consequences on my mind. What spurred that were a couple of food-related things. I went to do some research about an alcoholic product and of course, I was asked to verify my age before being allowed to read the brand’s website. I assumed that was some sort of regulation imposed on beer, wine, and booze makers since it’s the sort of thing I caution clients about doing all the time: preventing the user from completing their task as seamlessly as possible. As it turns out, there is no rule requiring alcohol brands to do this. What it might do, however, is deter the very people who should have more information about alcohol – young people – from getting educated. This is an unintended consequence. If they lie about their age to gain access, you’ve also caused them to violate the Computer Fraud and Abuse Act, and making them break the law is another unintended consequence.

I also read a piece on the growth of restaurant delivery services:

As mobile food delivery apps like Seamless, UberEats, Caviar, and Postmates steadily expand their delivery zones and their customer bases, many restaurants are increasingly relying on delivery orders as a significant source of revenue — and they’re having to adapt operations accordingly to keep up with demand.

The unintended consequence here is that restaurant personnel are often spending so much time servicing the take-out business that the customers seated in the dining room have a lesser experience. Putting aside the fact that there is the potential for a restaurant’s reputation to suffer when the product delivered is way inferior to the product in the dining room, a failure to properly prioritize the kitchen to service the folks who have journeyed to the dining room could set up a lose-lose situation, with neither the folks eating at home nor the people eating out being satisfied. There is also the stress caused by having to refine the operations plan to support the take-out business.

We see unintended consequences all the time. Kudzu went from being an ornamental plant to a menace. When the British governor of Delhi, India addressed a cobra infestation by putting a bounty on cobras, they got more, not fewer, snakes, as people raised them to collect the bounty. I’m sure you’ve seen examples in your business of this, whether it’s a different response to a price change than what was anticipated or a sudden wave of popularity of a brand or product based on some bit of social media madness.

Whatever it is, it’s incumbent on all of us to think about every decision in the context of what the effects of a course of action might be. Who is affected and how? How will it affect competitors and what might their possible responses be? Do this more each alternative you’re contemplating and your odds of avoiding an unintended consequence will improve. You with me?

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Navigating To Success

One of the roles I play along with my regular consulting gig is an advisor. I am what’s call a “Navigator” at one of the oldest incubators in the area. Each month, the Navigators get together and listen to a pitch from a resident company. It’s good practice for them (you can NEVER have enough practice pitching your business) and it’s good for us to become better-versed in what’s going on.

Most of the companies headquartered at the incubator are engaged in scientific research of some sort and there are a lot of Ph.D.’s wandering around the building. They know a phenomenal amount about their fields and about the company they’re germinating. The problem is that they don’t seem to know that they’re building a business and not a science experiment. We had one of these get-togethers yesterday and I was speaking to another Navigator, comparing notes about the companies we’ve seen and the pitches we’ve heard. He had found, as had I, that most of these very smart entrepreneurs had no trouble explaining the nuances of some very complicated science but had massive difficulty in explaining how they were going to make money.

A book from a few years ago wrote up research that found that 87.5% of Millennials disagreed with the statement that “money is the best measure of success.” On a personal level, I couldn’t agree more with their thinking. There ARE many more important things in life that reflect success and failure. On a business level, unfortunately, that’s dead wrong. When you raise capital, your ability to provide a return on that investment – i.e. money – is the measure of success. Otherwise, you’re not a business: you’re a charity. Since these entrepreneurs – almost all of whom are Millennials – claim to be building businesses, part of what I and the other Navigators help them do is to focus on the business of their business and not just on the science and their products.

We ask them the kinds of questions I hope you ask yourself. What problem are you solving? Who else is solving it? Why is your solution better? How much will it cost to build your product at scale? How is it priced? What is the profit margin? What’s the competitive set in how big a market? Pretty basic questions, I know, but these are smart people who have never been asked them before. The ones that can answer them clearly are the ones that will get funded and survive. Do you fall into that group?

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I Don’t Need A Hero

If you’ve spent any time reading this drivel, you’ve probably seen my constant nagging to provide value by solving problems. No, I’ve not changed my thinking about that, but I’d like to put one stipulation on the statement: make sure that the problem is real. I’m thinking specifically of those people who have hero syndrome. Not the seriously ill type such as the firefighter who is also an arsonist, lighting fires so they can save the day. I mean the people who are constantly solving problems that don’t exist.

I used to work with someone who would stick their head in my office and report that some client or partner was having an issue. They also told me not to worry – they were on the case and would handle it. Phew! Of course, it was rather odd when I mentioned to one of the “saved” partners that I was happy that my team member was able to solve their issue and the partner had no clue what I meant. Fortunately, the “hero” in question moved on not long afterward.

The other side of the equation is also true. There are people who are the “go-to” people in various areas and who become indispensable, so much so that their mental and physical health can suffer because they don’t want to disappoint anyone. It’s another aspect of hero syndrome. They feel as if they won’t be appreciated if they ask for help. Instead, they often become bitter, burnout, or both.

How do we handle people with hero syndrome? First, make sure the problems they are solving are real and are worth solving. Not everything is a crisis, you know. Second, make sure that they have the resources to solve the problem quickly, efficiently, and completely.  Sometimes for those of us who were higher-ups, it means getting your hands dirtier than usual, often doing work for which you’re overqualified. I always felt as if I was paid to be everyone’s safety net, so if it was a job I could do, I did it. I have plenty of paper cut scars from making last-minute copies and assembling binders when I was needed. Finally, pay attention to the folks who are constantly being heroes. Make sure they’re not lighting the fires they’re busy extinguishing. Make sure no one is constantly backlogged with work and everyone knows it’s OK to just say “no” when they’re overwhelmed. Those times are when those of us in management earn our pay.

Make sense?

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Filed under Consulting, Helpful Hints, Reality checks