Don’t rest on your achievements

KONICA MINOLTA DIGITAL CAMERA
Not so smart phone – but good for making calls

Over the weekend there has been a lot of press about Liam Fox’s comments that British business leaders are more interested in playing golf on a Friday afternoon than seeking international trade deals.

To my mind the comments from the Minister for International Trade demonstrates how out of touch politicians can be with the reality of running businesses both large and small. Long boozy lunches and taking Friday off to play golf with the chaps is a very old-fashioned view of the world of work.

However misguided I think he is, there may however be a small grain of truth in what he said about resting on our achievements of the past.

Last week Apple launched the iPhone 7 and it is hard to remember that prior to 2007 there were no smart phones or at least the smartest phone on the block was Blackberry. Hmm where are they now?

Apple have totally dominated, in financial terms, the smartphone market since its inception. But Apple wasn’t always very successful. In 2001 they lost US$25m and their net profit margin was 1.1% in both 2002 and 2003. Hardly results to boast about.Apple Profit vs iPhone SalesWell everything changes and nothing stays the same. Apple’s iPhone sales have probably peaked and look like falling back by about 15% this financial year. This isn’t a surprise. After all you can’t continue to sell 230m phones a year and expect that market to continue forever. Everyone who wants an iPhone pretty much already owns one. So the desperate search for new revenue sources is on, hence Apple’s move into music, TV, watches and perhaps even cars.

This process equally applies to all businesses both large and small.

Look at Marks & Spencer’s inability to compete in clothing now or Tesco’s problems with their out of town stores (and their alleged £326m accounting fraud to cover it up). I used to buy clothes in River Island many years ago and then their clothes, well became a bit rubbish (for me anyway). Recently I have gone back to buying clothes from them because the quality is right, the price point spot on and the style is perfect for me. Who has changed – River Island or me? It doesn’t really matter. Change is all around us and companies need to change and adapt as their customers change.

The world moves on, clients want different things, products and services become out of date.

If you don’t change then someone else will
seize your opportunity.

 

What can we learn from Olympic performers?

Discobolus of MyronI was at the gym the other day running on a treadmill while watching the women’s marathon. Normally I run at a modest 10 kph pace which keeps up my fitness without killing me. But on this occasion I noticed I was running faster and needed to increase the treadmill speed. The strange thing was not feeling as if I was working harder than normal and that made me wonder why.

As I was cooling off, I realized that I had been following along in the foot steps of the marathon runners without consciously knowing that I was doing anything different or working harder. So simply by watching others perform my own performance improved.

Does this apply in the business world?

Absolutely. Finding and following in the footsteps of people we admire can have a very positive impact on our performance. We’ve all worked with colleagues who can show us how to better handle difficult people or go about a challenging project. So surround yourself with Olympic quality colleagues and watch your skills and abilities improve.

[Editor’s note: Peter seems to be suggesting he was running at the same pace as the women marathon runners and frankly he is deluding himself. The winner’s average pace was 17.58kph over 2 hours and 24 minutes. Somewhat faster than Peter has ever run in his life.]

To succeed you have to accept failure

YOU CAN ONLY WIN IF YOU LEARN TO ACCEPT FAILURE.

I have just finished watching the Australian Tennis Open final between Andy Murray and Novak Djokovic. One thing that occurred to me during the match was the similarity between failure in sports competition, failure in business and losing in poker.

Winning is easy to cope with (although as I saw at the poker tables last night this can lead to a fatal over-confidence), but what about failure? We all hate it right? It makes us angry and sometimes affects us long after the event.

IT’S ALL ABOUT PERCENTAGES

In most sporting fields, including golf, tennis and Formula 1, we often hear commentators and players speaking of playing a percentage game. So assuming a good tennis shot percentage is around 85% it follows that 15% of the time we will not be successful. In Formula 1 they talk about driving at 95% and in poker a 60% chance of winning a hand is almost always the right percentage play. However in poker that means we lose 40% of the time and fate being capricious and cruel, sometimes that 40% comes all at once and we lose consecutive hands where we had a statistical advantage.

Business decisions are equally at risk of failure. No business decision has a 100% guarantee. Apple’s move into mobile technology looks brilliant now, but at the time there was no promise of success. Tesco supermarket’s move into the US market might have been a very well thought out strategy but it failed. So businesses equally make percentage plays.

WE NEVER FORGET A FAILURE

What happens when we fail? We remember it well and usually vividly because they upset and disrupt our equilibrium. We cannot get out of our minds the ‘what-if’s’and the ‘if-only’s’. When we win we celebrate how smart and talented we are and then promptly forget the success.

In poker when a player gets angry and upset losing a hand where they were a statistical favorite, we say they go on tilt. Tilt can last a few minutes, days or even weeks and it can adversely impact good decision making. Tilt also happens to executives and managers as well as businesses in general.

WHAT DOES THIS TELLS US?

We are surrounded by failure. Operating in any situation where the result is not guaranteed means we must be prepared to handle failure when, and not if, it arrives. What has this got to do with Andy Murray losing? Well I am not sure why he collapsed when he was 2-love up in the 3rd set. Perhaps one of his percentage shots missed and he just was unable to let it go. One thing is certain, Andy will need to let this relative (he got to the final after all) failure go, if he is to win another grand slam.

If you are interested in learning more about handling failure and as a by-product become happier and healthier in your work, then get in touch today.