They Lied To You Again
Blame the media. Blame the self-help you can be a millionaire promoters. You can blame anyone... but did they just tell us what we wanted to hear?
Verne Harnish of Gazelles suggested a Malcolm Gladwell article last week for a different reason than I am recommending it today. I do not like to send you something that you may have already received, however this article is important.
THE LIE: Successful entrepreneurs love risk and get funded after failures.
THE TRUTH: Successful entrepreneurs avoid risk just as you avoid a dog mess on the sidewalk. They go around it. They take routes to avoid it. And when a successful entrepreneur accidentally steps in it, risk disgusts them and they get rid of it quickly.
I apologize for the graphic representation of risk, but I have endured too much pain in my career because of thinking risk is acceptable. I spend a lot of time now consulting with other companies to help them lower their risk with employees and in business decisions.
Great entrepreneurs calculate the possible loss, downside or other risks rather than the upside. Possibly my favorite quote from the article is by Marty Gruss, who said: "Watch the downside; the upside will take care of itself."
MEETING IDEAS
THEY LIED TO YOU AGAIN is a reality check. Stop fantasizing that everything will work out. Do not go directly to ulcer-town, but be realistic about your debt load, business agreements and expectations with others.
This is one of the reasons a growing number of companies are hiring us. I coach them through a 3-month S.W.O.T. analysis of their systems and processes for fully engaging their people. Why? Because IT LOWERS RISK (and increases your potential for long-term success). The amazing thing is, we often identify something during implementing the program that more than pays for its cost - instant ROI.
Consider asking your people these questions with your senior management to evaluate your risk. What is the worst-case scenario for your company, executives, employees, clients or vendors in the following areas:
1. Employees. Your processes to hire, manage, develop and retain people. Employees are your biggest cost and determine the future of your organization. Your processes for fully engaging them should almost eliminate the downside risk and create massive opportunities for upside benefits.
2. Debt. Debt kills. Unfortunately I know this from experience. Try to eliminate debt from your organization.
3. Partnerships. The most important part of any partnership agreement is the definition of how the partnership is terminated. Be VERY careful with this wording.
