Where Most Entrepreneurs and CEOs Fail
Few business failures result from one big mistake or reversal of fortune, although one is a very dangerous number in business. Instead, they come from a series or pattern of top-dog ineffectiveness in these key areas.
- As noted by Fortune Magazine, the failure to deal decisively with people problems. Where ever I go, staffing continues to be a hot topic and the best piece of advice I have on this subject is hire slow, fire fast. I do however advocate that you fire people at a time that suits you, not them. The likelyhood of correcting ‘their’ incompetence is remote to zero, although stubborn entrepreneurs continue to try.
Most business CEOs do it the opposite way. The only indespensible person should be you.
- Entrepreneurs and CEOs often fail to pay close attention to their core business and are easily distracted. In fact, bored with key tasks, that extract the most income and success in their business and are easily lured away by more ‘sexy’ new adventures. Instead, look to make tiny tweaks in the core moneymaking functions of the business. As Dan Kennedy says “small hinges swing big doors”.
- Being slow and sluggish to respond when the need arises. When beauracracy steps in the time it takes to go from idea to reality lengthens greatly, costs increase and performance detoriates. Decisiveness is now replaced by deliberation. You’re ability to respond to customer and marketplace changes slows dramatically.
Put simply another way things don’t get done as fast as they used to. And this is dangerous because in today’s advanced technological environment, it’s even easier to go from leader of the pack to trailing the pack in a the blink of an eye. To paraphrase Ray Crock of McDonald’s fame, “You have to reinvent faster than you can copy, preserving your core strengths, altering and adding to your message to be more timely.”
Slowness to respond is caused by the desire to avoid painful change, hardwork and the abandonment of assets in which much has been invested.
- Not recognising your first responsibility as an entrepreneur or CEO is to sales and marketing. Most CEOs in particular spend little if any time in this area, and prefer instead to delegate. Trump pointed out early in the piece that sales was the key responsibility of the leader. Yet, unfortunately, they are often uncomfortable with this scenario or don’t recognise sales and marketing as a core responsibility.
5. Not staying in touch with the wants, fears, desires and needs of your customers and prospects. The more distance a leader becomes from the actual client, and their experiences with you, the more likely serious problems are to develop. The less ‘authentic’ your marketing is, the less likely you are to succeed.
Best regards
Mal
