When you reach the middle of the year, is it a time for celebration or redoubling of efforts…or both?As leader of your organization, it is your place to seek out and tell the truth about what is working and not working. This can be a tough role but necessary.
Assumptions get in the way of good business practices
Your willingness to see things as they are and not what you wish them to be shows up in testing assumptions. As an example, one of my Irish clients is really excited about launching his product in the US. However, he had a number of assumptions that just did not hold water hen he looked at them more closely. For starters, he assumed he knew how American consumers thought about Irish products. He also did not realize the costs involved as well as the various legal (immigration law, small business law, employment law, etc.) issues that needed preparation. It was in the business plan review that he was able to test his assumptions before committing large amounts of money.
But there are other assumptions that need testing
1. While I could spend a whole blog post on the cognitive biases that could interfere with a small business owner’s performance, one can quickly prove demoralizing as well as financially dangerous. Sunk cost fallacy which is the thought process that “I’ve committed so much money to X that I have to make something of it.” Some might say that this is throwing good money after bad.
2. “There is money for all of our plans” could be another assumption if cash flow is not monitored. Taking time to go through the financials, even if you are not a money person, does matter since it indicates if you need to step up business development or maintain your current course.
3. “I’m sure it’s getting done” I’ve worked with a couple of business owners who found out the hard way that not holding their staff accountable cost them thousands of dollars. Without asking your people if they are fulfilling their assignments or having agreed-upon measurements, you are potentially telling them that you are incompetent or disorganized.
There are more assumptions you might be making about time, your role(s) or any number of things. The key is to ask questions, even to what seems obvious, so that you have a clear picture of how your business is performing.
That is the CEO Mindset
Whether you have the title or simply take on the mindset, you are CEO. This makes you the one who sets the tone for the whole organization and shows through words and actions the most desired values and behaviors. Whether you use a SWOT analysis or another tool to answer the questions, you show a curious, honest and pragmatic type of leadership. Taking this approach during the mid-year business plan review promotes problem-solving, brainstorming and acknowledgement of successes and failures. Question your assumptions and stay willing to see things as they are.
How can you access the CEO Mindset?
Here are some suggestions to start implementing the CEO Mindset for yourself:
- Be a pragmatic visionary. Take your vision, build business goals that support it and measure your results.
- Examine the data for trends, patterns or anomalies
- Stop and listen so you can become aware of your assumptions
- Manage your attitude. Notice if you are overly optimistic, frustrated or tired can affect how your evaluate your data or interact with your staff.
What other assumptions need to be questioned by the business owner/ chief executive?
What are the best tools or resources for asking the right questions?
About the author: I’m Elli St.George Godfrey, a small business coach and executive coach who guides established small business owners in Ireland, Northern Ireland and the US to be comfortable in their own skin. I have a deep appreciation for learning and understanding my client’s business style and culture. Whether you are re-focusing your small business or expanding in your own backyard or into another country, my 3 keys coaching process helps clients move from being excited about growing to having the tools to make it actually happen. Curious? Schedule your complimentary coaching session here.