business

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Trust yourself

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c/o Medium

Artificial Intelligence (AI) lacks business acumen, it cannot delve into a business and apply nuance, experience, or patterns learned from other contexts. Back in the days when I used to sell clothes and accessories, I visited various businesses and noticed that many of them faced similar problems, despite different contexts. I think by observing these patterns, I can now have meaningful conversations with leaders and senior executives about their businesses. While AI can analyse data and provide information, it cannot interpret it in a way that human beings can understand, because it cannot grasp the context of what is truly happening in a business. What do you think?

Can they see the correlation?

Moving from asking insightful questions to internalising that information and then communicating it to decision-makers is what I do – bridge building, connecting the dots between various elements. As without this skill, building a business case becomes difficult. Trust is built when you articulate value bridges unique to your customers in a language they understand. By asking better questions, you’ll better understand how your services help your customers achieve their outcomes.

Back in the days

I wrote this text in 5 years ago…
”SB Consultancy is a customer experience research and consulting firm that helps organisations become more customer-centric.  My goal is simple: accelerate the path to delighting customers. I am a strategic optimiser, helping organisations improve business results by changing how they deal with customers. As part of this focus, I examine strategy, culture, interaction design, customer service, branding and leadership practices. I am passionate about spotting emerging best practices and helping companies master them and I also speak about these topics in keynotes and lecturing engagements.”

The best performers

High-performance in any chosen field whether it be business, stage or sport requires involves ongoing management of one's mindset. I think it's about continuously evolving your personality, expanding your abilities, and being open to facing new challenges. Therefore, this journey toward high-performance isn't just about success in your profession; it's also about nurturing your mental and emotional well-being. This holistic approach emphasises the interconnectedness between personal growth, professional success, and overall well-being.

One of the most valuable laws

One of my favourite principles is the Principle of Conservation of Energy, which essentially states that energy cannot be created or destroyed in an isolated system, only transformed from one form to another. This principle transcends various fields, from physics and engineering to economics and even psychology. In finance, for example, the concept of conservation of energy could be related to how resources are allocated and redistributed without any loss. I think it's incredible how foundational principles like this one can have such wide-reaching implications across diverse domains.

Busy vs. productive

There is a difference between busy and being productive!
Being productive is really about narrowing your focus, it’s about prioritisation and it means you carefully select what’s most important, and eliminating things that are not so important. I think you should invest your time and energy in things where it’s going to make a difference to your goals and outcomes. A successful day is a day where you make massive progress on the things that matter for you. There are only two major things that make you productive in sales, one is opportunity creation and, and the other is opportunity capture.

“Being busy is about being good at everything while being productive is about being great at a few important things.”
— Burrellism

If I had the key

Senior executives require specific knowledge to effectively carry out their roles, for example, they need to know both how to create exciting, profitable new ideas for their business and how to implement them. In other words, they need both intellectual and practical knowledge. I think they need a combination of intellectual insight and practical skills.

 

Business operations today are focused on enhancing efficiency by optimising processes that may no longer be relevant in the present. This often involves analysing historical data to identify cost-saving opportunities and efficiency enhancements. Unfortunately, this approach frequently leads to a narrow focus on cost reduction, with the finance department receiving accolades for these efforts while escaping accountability for missed opportunities.

There's no easy route

Standard economic theory envisions individuals endowed with perfect information, complete trust, and consistent preferences while possessing a complete understanding of their utility functions. In other words, they possess clear knowledge of their desires, their willingness to invest, and a deep-seated trust in their potential sellers. Many economic models build upon these foundational assumptions, and these models operate under the notion that the sole avenues to enhance a product's appeal involve reducing its cost or expanding its functionality. I think that we have allowed economists to create a culture in which business makes the same assumptions that dictates the only means to enhance value is through efficiency improvements. However, reality teaches us otherwise, value creation can also arise through the establishment of trust, by telling a story which frames the price of the product or function of the product in a new enlightening and more motivating way or selling it in such a way that fosters confidence in the consumer's decision.

Four ways

There are only four ways to increase profit:

  1. Increase volume

  2. Increase price

  3. Reduce cost

  4. Change product mix

It's important to note that these strategies are not mutually exclusive, and often, businesses use a combination of these approaches to achieve sustainable profit growth. Also, other strategies and factors can influence profitability, such as marketing, branding, customer service, and innovation. Even though I think that understanding the changing market dynamics is typically the most effective way to increase profit over the long term. The effectiveness of these strategies can vary depending on the industry, market conditions, and the specific circumstances of a business. Contact me via e-mail to arrange a meeting about a more well-rounded approach that considers all aspects of your business.

Meaning and structure

Starting a business is a multifaceted journey that involves bringing a marketable skill, idea, service or product to life, creating value for your target audience, and leveraging your knowledge, abilities, efforts, and time to achieve success. Adaptation, continuous learning, and effective resource management are ongoing processes that contribute to the growth and sustainability of your business. To ensure you have a clear understanding of your business venture, you should consider the following questions:

• What exactly is it that you do?
• Who is your target audience?
• Why does your business matter?

Are you thinking about starting a business? Contact me via e-mail and book a business development strategy meeting.

Embracing the concept of anti-fragility

Are you familiar with Nassim Taleb’s “Barbell Strategy”? 

Yes, the Barbell Strategy is a concept Nassim Taleb introduced in his book "Antifragile: Things That Gain From Disorder," which is designed to help individuals and organisations navigate uncertainty and volatility. Taleb suggests that in situations of high uncertainty and unpredictability, it's best to avoid the middle. This means staying away from investments or strategies that have moderate risk but limited upside, as they can be vulnerable to unexpected events. Taleb’s says we should put 80% into less risk, low reward investments to ensure that you don’t go bankrupt, and then put a small percentage into things where you have a finite knowable downside and where the potential upside can be huge. I think it’s essential you look at them differently, the way you react when you lose money in 20% range should be with “it could happen” eyes. On the other hand, if you lose money in the 80% bracket you should panic, as this investment is not supposed to be losing you money.

 

A large part of business is about being totally logical, consistent, pursuing efficiency, exploiting what you already know, following best practice, etc., etc. I think the Barbell Strategy can be applied to financial investments as well as to various aspects of life, including career choices, personal health, and decision-making. It's a way to thrive in a world where uncertainty and randomness play significant roles.

Effort vs. results

The Pareto Principle is also referred to as the 80/20 rule, and the concept originated from an observation made by Italian economist Vilfredo Pareto. This principle suggests that approximately 80% of effects are driven by 20% of causes. Therefore, I think one should focus on the 20% that yields 80% of the results as not everything is a priority.

Remember that results must be S.M.A.R.T (Specific, Measurable, Achievable, Relevant, and Time-Bound) and should be defined in terms of goals that can be clearly measured. If the goals are achieved, the results are accomplished, and the job is done. Efforts are actions and they specify the plan that must be executed to achieve the results.

Reconciling different goals

Image: Aaron Lynn ©

Goals: What’s best for the customer? What’s best for the local community? What’s best for the planet? These are all noble causes, but often teams can’t come to an agreement on these goals. It’s not uncommon for teams within organisations to have conflicting or even opposing goals where the only common ground is they all work for the organisation, and they all want it to be successful. Therefore, they turn to a question that much more straightforward, much easier to measure and far more sinister: What’s best for the organisation?

Whenever we ask that question it’s all over, as I think the primary focus shifts to what's best for the organisation in terms of profitability, which can sometimes lead to decisions that prioritise financial gain over other considerations such as employee well-being, environmental impact, or ethical concerns. Organisations today demand constant scale and growth, and when push comes to shove, we have to be able to support our family and we all want stability in our lives. When the decision is about feeding our families or stretching the truth, I think most people are going to choose the latter.

This may give you perspective

I think we often underestimated how similar people are to each other, just as businesses tend to share common challenges. My focus primarily revolves around assisting small and medium-sized enterprises (SMEs), and I support them in three key areas:

  1. Traffic Generation: This involves attracting potential customers, whether it's driving foot traffic to physical brick-and-mortar locations or directing online traffic to their websites.

  2. Competitive Differentiation: Businesses often grapple with standing out from their competitors, and I work with my clients to help them establish a unique and compelling identity in their respective markets.

  3. Market Expansion: Finding new opportunities and markets for their products or services is a crucial aspect of business growth, and I provide guidance in identifying and tapping into these untapped areas.

Contact me via e-mail for an initial discover meeting.

Are you a value creator?

When I enter a business meeting, my focus is consistently directed towards identifying elements that can provide the client with either an opportunity for growth or a stimulating challenge. Ultimately, I’m looking for things that are going to motivate them to act. It’s not enough to just tell them what they want to hear because I am supposed to be the expert in what I do. I aim to serve them by creating value and sharing insights into their thought process.

Here’s a line of questioning:
- What are your views and values? 

- What do you believe is good, right, and true?
- Where do you think your market’s going?

- Have you identified the intersection between your business and the market? 

- What are your recommendations based on what you believe to be good, right, and true? 


It's a balancing act

Are you aware that your knowledge is a valuable asset?
I think your skills and abilities play a significant role in how you deliver your product or service and will contribute to the quality of your offering. Whether it's your craftsmanship, problem-solving skills, communication abilities, or technical expertise. This knowledge guides your decisions, helps you make informed choices, and enables you to stay competitive and relevant. Industry expertise, understanding of customer needs, and your insights into market trends are also valuable assets. All of these attributes contribute to the overall customer experience and differentiate you from competitors. Contact me via e-mail to book a confidential 1:1 sparring session.

Prioritise and sharing

I think that if you want to be an effective consultant it's essential to prioritise what's most important over what's merely relevant. Your role is to provide valuable advice and recommendations to your clients, guiding them towards the results they desire, as without fulfilling this consultative duty, you risk becoming irrelevant in their eyes. To become a successful consultant your approach should involve breaking down complex information into manageable parts – facts and impacts. Your ability to understand the overarching trends in the world, and then assess their implications for your clients, giving them a clearer picture of how these trends will affect their businesses. This foundational knowledge will serve as a basis for crafting well-informed and actionable recommendations for your clients, and this will also position yourself as a trusted advisor

Small transactions in awesomeness

Part of Western culture, the science and technology we developed is measuring things, even things that are unmeasurable. I think one of the pleasures of art is it takes us away from the world of measurement and allows us to feel enormous dwells of emotion.

““You can’t manage what you can’t measure.””
— Peter Drucker

Expectation vs. anticipation

Working together or purchasing this product or service is bound to be an amazing experience. The outcome of this collaboration or purchase will significantly influence whether customers will choose to return for more or hire the company for future projects. In both business and life, striking the right balance between making enticing promises and avoiding overpromising is crucial because it's essential to deliver on what you have pledged. The truth is our satisfaction with any outcome often depends on the expectations we had before attaining it. It's the desire and anticipation that drive our actions, not merely the eventual reward.

““Perceived value motivates you to act, actual value motivates you to repeat the action.”
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— Burrellism