Wednesday, March 25, 2009

Half Full, Half Empty, or a New Perspective?

"One's first step in wisdom is to question everything -- and one's last is to come to terms with everything."
Georg Lichtenberg
German scientist and satirist
Is the glass half full or half empty? This metaphor is often used to talk about optimism or pessimism. However, what if we asked a different question about the glass? How might that change our perspective...and the actions we take next?

Everyone likes straightforward questions and answers, but business issues are rarely that simple (if they were, they probably would have been resolved long before now). At a minimum, strategy requires consideration of current and future market opportunities, competitive position, core competencies, key assets, and financial implications. Similarly, the messy reality of execution requires a deeper understanding of how an issue impacts a complex web of policies, processes, people, and systems. All of this requires perspective.

To gain this perspective, you typically need to assess an issue from multiple angles (e.g., various stakeholders, various levels of the organization, strategic vs. tactical). Building on the example of the glass of water, one might ask the following questions:
  • Is the status of the glass critical for our business? How does it stack-up to our other priorities? When is an answer required? Can the question be delegated?
  • The glass is actually full -- 50:50 air/water. Which do you want in the glass? Why? Is there a better alternative?
  • Is the water volume in the glass trending up, or trending down? Is the trend accelerating or decelerating? Is the trend positive or negative? What is driving these changes? What can we do to positively influence the trend?
  • Is the volume of water sufficient for our needs? Over what time period? What is the process for refilling the glass?
  • Is the glass over-sized for its purpose? Under-sized for future needs? Is there a better use for the glass?
  • Do we own the glass? Lease? Can we leverage a partner's glass?
  • Do we need a glass at all? Can a different approach (e.g., water fountain) meet our needs more efficiently and/or effectively?
Please note: I never advocate "boiling the ocean" or making an issue more complicated than it needs to be. Balance additional analysis against an issue's importance, value differential of options, reversibility of a decision, available resources, and desired time line. When all else is equal, simple strategies, business models, and execution plans generate the most value over time (because they are most likely to have superior execution!).

That said...When faced with a significant business situation, it's almost always wise to take a moment to "peel the onion." The perspective you gain will help ensure you're working towards the most important goals, targeting the root causes with the most impact, and executing on plans with the best chance of success.

So, is the glass half full or half empty? With a different perspective, it could be almost anything.

Monday Morning Actions
  • Look at your business from a different perspective. Consider the potential views of customers, partners, channels, employees (current and potential candidates), shareholders, debt holders, and potential investors. What concerns do each group have?
  • Assess how a private equity buyer or turnaround specialist would view the value potential of your business
  • Identify one business issue that may benefit from additional perspective; briefly explore the issue with cross-functional stakeholders to generate new ideas
  • Identify one business issue that is being overcomplicated; make a call on the issue
  • Mentor a subordinate on the value of perspective in problem solving

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