Monday, January 11, 2010

The Law of Unintended Consequences

Often we do things that have an opposite effect. For example, you tell one of your children not to lick a metal post on a freezing day and they will likely to try it to see if what you said is actually true. Or, a standard response to a "Fresh Paint" sign is to touch to see if the paint really is wet.

In managing a business the best intentions often have unintended and far reaching consequences. For most entrepreneurs there is no greater unintended consequence than working hard and not getting the results because the ladder is leaning up against the wrong wall.

Planning for success in an entrepreneurial venture requires organizing activities and time to facilitate the greatest probability of success. However, there is one thing that stands at the front of the line when organizing time and events – focusing on the right things. Let me share an experience on how trying to do the right thing does not always end up that way.

Jim Arsons became a franchisee after being downsized from his 25 year stint in the corporate world. As he started his new business he spent 12-14 hours a day, five and six days a week. He loved and was passionate about his job and being his own boss was definitely better than working this hard for someone else.

However, his business just did not take off like he thought it would. He arrived each morning before 7:00 AM with the intention of preparing for the day and then get out and call on prospect and clients to generate sales. However, he usually never got out the door because “things happen” and he got sucked into a flurry of operational issues. Every day he seemed to disappear into the fabled Black Hole of Operations before he could get out the door.

Intent: Get into the office early and plan the day.

Consequence: Things happened and he disappeared into the Black Hole of Operations.

Solution: Plan the day at home before leaving for the day and come into the office later in the day vs. first thing in the morning.

Result: Dramatic change in sales.

Moral: Often we do one thing with the right intent but the opposite happens.
As you plan for the future, think about what you do and what actually is happening.

If you focus on the core aspects of making money, it is more likely than not that your bank account will grow vs. working hard and not having the right things happen and seeing your bank account slowly drain away.

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