Tag Archives: Reality checks

Pay Me Now Or Pay Me Later

One thing that frustrates me is some folks’ inability to understand cost and value. There have been a few times over my last decade of consulting when that inability manifests itself in a particularly bad way. I’ve begun work with clients on more that one occasion where the client has spent a lot (in one case, close to a million dollars) of their seed money to build websites that didn’t accomplish what the client needed them to do. Most of the reason for this was that they hired the lowest-cost option. They failed to see that the value they needed was in their provider understanding the client’s business and delivering a solution that met the business requirements. Instead, they hired someone who made them a beautiful website that was fairly useless from a business perspective. That’s cost vs. value. They saved on cost and failed on value.

Startup companies are notoriously short of funds. Often the founders are working without pay and the thought of paying consultants, lawyers, accountants, and other professionals is anathema to them. That’s a big mistake. I worked with another startup that took intellectual property advice from “a friend who had done this before” instead of a lawyer. I noticed a potential problem with their name immediately but they were happy to go with their friend’s advice despite my asking about a legal opinion. As a result, once they launched their brand, they received a cease and desist letter informing them that they were infringing on another trademark. That resulted in a major depletion of their remaining funds to rebrand and to pay a lawyer to respond to the C&D. Cost vs. value in action.

What’s my point? If you’re venturing onto new grounds, hire some guides before you get lost. You’re going to be paying these professionals at some point and you might as well do so early on. Yes, it’s a cost you don’t think you can afford, but the value you receive can prevent very expensive mistakes and will ultimately save you money in the long run. Had I or any reasonably smart consultant been involved early, we would have talked about what analytics we needed from the website to make actionable business decisions before we worried about anything else. Every dollar spent on the site afterward would advance the business’ goals and not to making art rather than commerce.

Pay us now or pay us later. I think the sooner the better. You?

1 Comment

Filed under Consulting

New Greens, New Breaks

One of the first things you learn about writing is that you generally want to stick to writing “what you know.” That’s why things around here generally revolve around business, golf, and food. Sometimes those three things intersect (a bad food experience at an obviously failing snack bar on some golf course?) but generally I manage to get two of the three put together, and all the screeds have a business point to make.

Today, as is often the case on Mondays, something occurred to me on the golf course over the weekend. My home course replaced the greens last summer. We went from bent grass greens to Minverde Bermuda greens. I can hear your eyes rolling, but let me explain what that has meant and why it just might be meaningful to you and your business.

One thing with which many businesses are dealing, either directly or indirectly, is climate change. In the case of golf courses here in North Carolina, it’s meant that some strains of grass just can’t take the heat and clubs spend a lot of money trying to prevent them from dying. There are dead spots, root rot and massive fans that are installed near some greens which run up the power bill trying to cool down the grass that can’t take the heat. Our place lost parts of 5 greens two years ago. The takeaway is that you can believe or not believe in climate change but you can’t ignore the effects that whatever is going on is having. I don’t suspect you run a golf course, but you may stock seasonal items or have staffing needs that are weather-dependent and you can’t stick to the calendar as you once knew it.

That, however, isn’t my main point today. One of the other things that happened when they replaced the greens is that everything was different. The speed was different, the way the ball moved on the green was different, and the new greens were very hard, so you couldn’t land the ball where you used to because it would bounce and roll. The breaks (how the ball moved in response to the topography) were completely different, so all of the local knowledge you had was gone. I will tell you that it’s frustrating to have a putt you’ve made many times before suddenly not move as much as it once did. It is also difficult to train yourself to ignore the slope you know is there because you also know the ball isn’t moving the way it used to.

That sort of thing happens in your business. Things change and you can’t operate under your old belief system. I may believe the ball will move three feet left but on the new green, it barely moves. You may think to be on Main Street will assure you of foot traffic but when the new mall opens, your reality will be quite different. You need to do the best you can is reading the new terrain and adjust your thinking. Otherwise, you’re going to be missing the mark quite a bit, sort of like I did this weekend. New greens mean new breaks and that means a new look at everything you do. Make sense?

Leave a comment

Filed under Consulting, Helpful Hints, Reality checks

Engineers And Lawyers

Techcrunch published a piece yesterday that caught my attention because I think it hits a proverbial nail right on the head. It dealt with the topic of fake news but I think it has important things to say to any of us in business as well. To quote the piece, “The real problem isn’t fake news; it’s that people have given up on that search for truth.” It’s a topic we’ve touched on here many times but I really like how the author – Jon Evans – explains to two different mentalities under which many of us operate these days.

I still tend to come at the world with what he calls an engineer’s mentality. I look at the information in front of me, seek out as much new information as I can, and adjust my thinking even if what I find contradicts what I believed previously. Whether you think of that as an engineer or a scientist or just being an adult, it seemed as if most of the people I knew operated under a similar paradigm.

He goes on to make the point that most people today operate instead with a lawyer’s mentality. You pick a side (generally based upon who is your client!), and then sort through all the available information, picking and choosing that which supports your side while discarding (at best) or belittling (at worst) that which doesn’t. In other words, many of us approach the world with what can be a fatal case of confirmation bias.

Many of my closest friends in the world are lawyers. In their personal lives, most of them actually tend not to bring their professional mentality to their personal thinking. That said, what’s wrong with the lawyer’s point of view? Simple. That one-sided analysis of the “facts” will be offset in front of a decision-maker – a judge and/or jury – by the other, equally biased set of facts presented by the opposing counsel. In business (and life), we generally have to weigh ALL the information ourselves and do the best we can with respect to sorting out the truth or the best course of action. We need to be our own opposing counsel if you will.

We need to think like scientists. It’s fine to have a point of view or an initial hypothesis, but we really need to apply the scientific method in our business laboratories and validate our thinking. Not all data are meaningful or even truthful. Neither are all the things we hear from coworkers. Do your research, form your own opinions. Given where we are as a country, it might not hurt each of us to think about our thinking and how we go about forming our non-business opinions too, don’t you think?

Leave a comment

Filed under Helpful Hints, Reality checks