How Much Should You Expect From a ... Change?

Toyota looks for a 1 % change from each change it puts in place. This company started from the ashes of WWII and is now the biggest auto company in the world. One could say that its management and shareholders fully understand that success comes in small increments, by having patience and being willing to take the long view.

Many business owners might improve their performance if they adopted these same attitudes.

Too often I hear decision makers objecting that the projected ROI on a new project is too small, or that the time frame to see a difference is too long. Some times these comments are valid. If the risk is great and the outcome is too uncertain, or the framework for the activity is too volatile, maybe the project should not be undertaken.

But how many times are small payoff changes rejected because the payoff is too small, just not worth it?

I think this happens more often than it should. We are accustomed to thinking in terms of big results. The value of our house should go up 25% a year. The new marketing campaign should improve sales 10% per month. A diet is only worth doing if I drop five pounds a week. This stock should do twice as well as the S & P 500.

As soon as I graduate I want to get on the “fast track” so my income will go up 50% a year.

To my way of thinking little good can come of total focus on such thoughts and the bad results can be very bad.

If one takes pride in and encourages small changes which produce small successes, he or she will develop an eye for details which will become second nature as they look at bigger, more complex projects. As the individual develops more appreciation for the process they will find that those around them will become more involved, will offer more suggestions, and will become supportive of all the projects.

Look at this approach as practice. The athlete trains and looks for incremental improvement. He or she takes pride in improving their time or their output according to their timetable leading up to the day of the event. They know that that they have to “build” to reach maximum performance and they have to peak on the date of the competition.

The individuals you employee are in training. They want to be ready when it’s their turn to perform. How will they get there without practice? What’s their training?

As the owner you not only have to develop the business’ strategy and make it happen, you have to get the people in place to handle the growth and expansion. How will you do it?

We read about how different coaches prepare their teams for the season, the playoffs, the “big” game. One dwells on fundamentals while another focuses on low stress routines. We watch how the early victor in the playoff series has to be careful that it doesn’t lose its edge, get complacent.

These same thoughts, discussions, and philosophies are all part of what you as the business owner should consider. There is no “right” answer. What works this year may not work next year. That’s part of the complexities of managing any activity. The key is to remain open to new ideas, to realize that that things change; within the business, within the industry, and in the minds of the consumers who make up the market place.

But one thing stays the same. So long as you are attempting to accomplish results through the efforts of others, you must allow for the differences in abilities, effort, and desire. You must lead and to do so requires that you get the right people working on the same objective. You must get your “players” ready for when it will be their turn at bat.

Consider the successful mangers of the professional sports teams. How many were home run hitters or star quarterbacks, or the MVP of the NBA? Not many. The best mangers came from the ranks, maybe even the benches. They understood slow, steady progress; teamwork and getting the right person in the right position. They knew how to motivate and how to get small, positive, cumulative results from frequent changes. They had great coaches and managers helping them get ready.

Many small projects with small payoffs are an excellent training ground – and the results are cumulative – just look at Toyota. To flip the phrase uttered by that nameless politician; 1% here, 1 % there – pretty soon you’re talking about real money!

Art Consoli held eight corporate positions with Johnson & Johnson before starting his first business. He went on to build over twenty businesses from patents or ideas or from businesses others couldn't make successful. These ranged from starting a veterinarian drug company to taking over a steel fabricating company to developing the first manufactured home subdivision to qualify for every private and government assisted mortgage program in Arizona. He also did ten workouts for lenders and owners; the last was a $30 million, 300 employee, precision parts manufacturing plant that made parts for the auto industry. Consoli's unique background and skills allow him to speak and write about how someone with limited experience can do a self-evaluation which will let him decide which business opportunity is best, how to evaluate opportunities and gain control over the one which offers the greatest potential and then manage that business to success. Readers of his book call and write to tell him how much his book has helped their lives and improved their business.

The author can be reached at http://www.businessstrategyartconsoli.com

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