Staring Down the Risk
Risk is a manifestation of necessary change.
Continuing on the 95/5 rule from my most recent Indie Insights blog and understanding that focusing on the 5% of the business will change the other 95% requires an element of risk. Risk is a manifestation of necessary change. Growth requires taking risks; however, you can take comfort in knowing that mitigating risk comes from focusing on the 5%.
Maureen Doron, the owner of SKIRT, shared in the blog mentioned above (watch the video interview) that the risk she took changing her return philosophy and making it a marketing effort. One client remarked to me after listening to the interview that it was a new wrinkle to a trade-in event.
That represents one example of how focusing on the 5% changed her business significantly by adding new customers, breaking daily sales records, and generating an extraordinary amount of goodwill
Rick Ford, a retired M1 consultant and a good friend, wrote to me after the blog post that he found his clients often made rules based on how the 5% who did not give a rip, to catch them, and that resulted in making it a lot harder for the 95% who genuinely cared. Once the rules changed to reflect the 95%, who truly cared about the business, the 95% took off and developed an owners mentality. The 95% then held the 5% accountable, or they left. A great deal has been discussed about the importance culture plays in keeping and attracting people. Not making rules based on the 5% is a good beginning to creating a healthy culture where your people can thrive.
There are additional ways to start to engage with your people to build empowerment, and that requires a level of trust. Trust, as the saying goes, is earned and does not happen overnight. The question is, are you willing to risk investing in trusting your people?
The way to start trusting your people is to involve them in problem-solving. There is a technique to this, and to get the ball rolling, you should bring in your M1 Retail Expert or hire an outside facilitator. Brainstorm a list of issues that are common to you and your people, select one issue to solve, and go for it. Remember to make sure that the issue and the solution both involve data. If you can’t measure it is not an opportunity or problem, and if it cannot be measured, it cannot be solved.
Implementing a solution that your people helped solve will begin the journey of developing trust and motivation and your people acting as owners and not renters of their jobs.
In my follow-up blog, I continue to discuss how to identify focusing on the 5% that will change the other 95% of the business. The challenge for every business owner is always about staring down the risk and deciding which risk is necessary for your growth. This requires a laser focus and not chasing shiny objects.
Onwards, and Upwards,
Marc Weiss - Co-founder, Management One