THE MISTAKES SMART PEOPLE MAKE

Have you wonder why smart people sometimes make mistakes that seem like good ideas at the time. Why do clearly intelligent people, including business leaders, make spectacularly wrong decisions costing them time, money, and at worst, the loyalty of their customers and employees? Yes, sometimes apparently intelligent individuals, even geniuses, do things that look exactly like stupidity. That is thrust of this piece.

If we look around us, we can find all kinds of examples of things that smart people got wrong. In hindsight, some of them seem so simple. We look at them and say, “How could a smart guy like him do something so stupid?” “How could this intelligent lady end up marrying a fool like that?”

Let’s look at football team for instance, the Arsenal FC was founded in 1886 by a group of workers employed by the Dial Square workshop at the Royal Arsenal, an armaments factory in Woolwich, Kent (formally part of the new County of London from 1889). They were led by a Scotsman, David Danskin, who purchased the club's first football, and Jack Humble. Arsenal has had a total of 26 managers from inception until this moment, Arsène Wenger being the long serving manager since 1^st Oct., 1996. To his records are: Premier League champions: 1997–98, 2001–02, 2003–04, FA Cup winners: 1997–98, 2001–02, 2002–03, 2004–05, 2013–14, 2014–15, Charity/Community Shield winners: 1998, 1999, 2002, 2004, 2014, 2015

Before the French man took over from the Irish - Pat Rice who was among the four previous managers Arsenal had without a single trophy from Feb 1995 – 1996, he had a successful managerial records with Monaco FC.

Chelsea FC on the other hand has had 38 managers from inception in 1905 till date, José Mourinho being the most exceptional manager with spectacular records: 2005 Football League Cup, 2005 Premier League, 2005 FA Community Shield, 2006 Premier League, 2007 Football League Cup, 2007 FA Cup, 2015 Football League Cup, 2015 Premier League. Even though Roberto Di Matteo made history in 2012 by leading the team to win their first ever UEFA Champions League, Mourinho still remains the finest and most celebrated manager of Chelsea FC.

Looking at the results and achievements of these two coaches Arsene Wenger and Jose Mourinho you will agree with me that they are both smart and good at their job. Even though Arsenal fans will totally agree giving the current form and direction of the club. Mourinho of course had his worst career record too at Chelsea 2015-2016 before being shown the exit-door by the Russian billionaire - Roman Abramovich.

In a nutshell, both managers despite their fantastic results have failed in their realms and fall short of expectations. Why these things happen, and why they have to happen, at least until we understand their causes is the major thrust of this piece. All the errors presented in this piece were cause by ways of thinking that are not stupid; indeed, we need them in order to live. But like many good things, too much of them can be harmful.

Like the two examples given above, there are trade-offs in ways of thinking, just like in anything else we do in life. If I buy a car that is big and comfortable (eg. Jeep), I have to spend more on fuel at N145 per litter and still rising; but if I buy a small, fuel-efficient car (eg. Golf), I lose in luxury.

The same trade-offs apply to the ways we think. For example, if we are wired to safe cost and deliver good results at minimal investment cost. It will affect our predisposition and choice of tools and resources to get the job done thus even if we were given a pot full of money at our disposal just to get the best tools for our job, we would still not want to get expensive tools which are most likely the best. We would rather pick solace in criticizing others who splash lots of money acquiring the best resources to deliver best result. That informs the Newspaper’s headlines such as “Arsene Wenger describes Paul Pogba's £100million transfer fee as complete madness” – (UK Mirror, 31^st July, 2016). “Arsenal transfer news: Arsene Wenger attacks Paul Pogba move and admits need for new defender and striker”- UK Independent, 31^st July, 2016).

Every error in life is as a result of the kind of trade-offs; each one is an example of behaviors we need but that sometimes leads us to error. Time will tell if Pogba’s move was complete madness or not, that same time is all Wenger needed to have used to acquire what he needs to start churning out result instead of critiquing others and waiting until the market is about to close. Perhaps it was a strategic move to wait until when all buyers are out of the market so he could pick the remnants at cheap costs. Just my opinion though, I have high respect for the Sexagenarian but it sometimes baffles me how a smart man like him make stupid decisions.

As my career progresses in the field of Project management and IT consulting, I began to work with more senior professionals who had dedicated the best part of their career to the field, I noticed that the business world did not really have a handle on why people make mistakes in judgment and provided very little training in how to avoid them.

As I continued to look at this problem, a few things became clear to me. These are the points I will like to discuss:

·         The thought patterns that make smart people do stupid things are rooted in our own evolution and development. These thought patterns are not evil or stupid – they are just inappropriate.

·         The mistakes that Football club managers, government leaders, and business managers make, those that look like subtle misjudgments, are driven by the same thought patterns as those made by the most ridiculously stupid of our fellows.

·          Intelligence does not prevent these mistakes, at least not perfectly. Indeed, being smart actually seems to make you more susceptible to certain types of error.

Jim Nightingale in his book “Think Smart, Act Smart” buttress this when he divided these mistakes into four major groups according to the underlying Psychological forces behind them:

1.    Wishful thinking: Strong desire makes it difficult for us to think clearly and realistically. Eg: “I can’t work under anyone, I want to own my business and be my own boss”

2.    Mythical Thinking: We are unable to free ourselves from powerfully held beliefs that explain the world for us and to which we have made strong commitments, or are unable to discard an approach that has been successful for us in the past. For example, to be successful, you must be educated!

3.    Tribal Thinking: Social concerns keep us from reaching correct conclusion. Eg: “He is an Igbo guy, they are very industrious let’s employ him”.

4.    Royal Thinking: Issues of power and hierarchy keep us from making good decisions. Eg: “Am too big for those small businesses, leave them for the boys, let’s chase the big fish”.

 

The first two groups contain things that happen to individuals; the last two apply mostly to group situations, where several people are involved in the thinking process. Some of the tips below will be useful in avoiding the business mistakes that even intelligent people make:

1.    Never make decisions unconsciously: Most decisions are made by leaders/managers unconsciously because of the enormous pressure on them. Avoid rash decision, mull over every decision especially in formal decision-making processes. A simple decision can cost your business huge loss.

2.    View the world through the right lens: That is, give the appropriate weight to the right things. If the challenge facing the organization is quality, then getting more people to get the job done isn’t the solution but the right people.

3.    Set the right Goals: Among the most common decision pathologies in organizations are unclear goals. I once worked with the executive team of a newspaper company that provided a good illustration of this problem. Ensure that the goal is clear with you before bring on board other resources to drive them with you. As a matter of fact, the type of goals you set to achieve determine the kinds of resources you will employ to chase them. If 4^th -5^th place in the league is what the goal of the management is, then even if your team has the opportunity to grab the first place, psychologically they will be dragged down to give it up for 5^th place.

4.    Get the right people: Just as explained earlier, the right goal begets the right people, the right people begets the right result.

5.    Get the Right Process: It may sound strange to talk about this as a Nigerian, but the fact remains setting up the processes for an action or decision stand you out. People with the right process get things done faster and better than their counterparts.

 

I agree with Nightingale’s six rules of decision making to avoid errors in judgement.

1.    Look for disconfirming evidence: Probably, the single most important thing decision makers can do is look for evidence that tells them they are wrong.

2.    Do your homework

3.    Stepping outside of the problem to think

4.    Review your decisions and see what worked and did not

5.    Create a strong group of thinking partners/friends/associates

6.    Know your limits and beware of success: Sound strange? Successful people are used to being right, and sometimes this can lead them to assume that they have grasped and understood a problem.

In the spirit of full disclosure, I claim no immunity from these mistakes myself and have fallen prey to each of them at one time or another (many times actually). My aim is to point out some of these errors and recommend solutions that has worked for me and still working, I believe they will be useful in your decision making too especially judgment that affects others.

I wish you the best in your endeavor.

VALUE

·           

I got myself thinking of the word “Friendship” and I come to realise that it means so much more than what it literally represent.

The Webster dictionary defines it as the emotions or conduct of friends; the state of being friends.I saw another interesting definition as "a state of mutual trust and support between two persons". 

Two pertinent words that resonate to me in the definition is mutual trust. One would wonder what earns this mutual trust. It's simply VALUE!!!

Most of the people we claim are friends in our lives today are only there for the gains and benefits(value they get from you). Rarely do you have those who think about the value they bring on the table. The question is always….what do I benefits from being a friend to this person? Even the Society subconsciously ask the same of us. I often hear questions such as "what do you stand to gain from this person".

If anyone is good or nice to you, it’s because of the value they get from you…none wants to carry extra luggage. There’s always a reason for every relationship, people respect and admire you only because of what you bring on the table. Without the value, you are nothing and gradually you will become a silent enemy to the so called “Friends”.

Think about it, why is it that we have so many friends in good times and just a few or none standby you when things are not so good. Isn't it time you review "your friends"?I found the tips helpful, you might too. Try it out:

•  Pay attention to the facts and every details – every relationship is for a purpose. Don’t get deluded!
• Evaluate the worth and gains of your friends to you.
• Become selective of friends – Not everyone deserves to sit on your table.
•  Grow your value – give friends a reason to want you.
•  Manage your supply- don’t make yourself available cheap to all friends. If they value you, they will look for you.

Measure your worth today and you will start having productive and loyal friends who really matters not some parasites.

Apply same to your business and I bet you only clients that matters will be on your list.

Best Regards

Lanre Yusuf

Business Development Consultant

Your Smile...My Delight!!!

THE NICEST CUSTOMER WHO NEVER COMES BACK!!!

c

onsider the customer who complains and criticises you for the bad service you deliver. You ought to be grateful that he is giving you the opportunity to correct yourself and make amends in some tangible way.”- Kissmetrics

I love barbecue popularly known as Suya. Especially if its well spiced and garnished. There are two Suya spots in my neighbourhood, both at an acceptable hygienic standard. I should be one of their most frequent customers if not the best customer. You know who I am talking about. I’m the one who never complains, never shouts, never performs or causes a scene when I am unhappy with their service. I don’t ask for jara (bonus) even when I feel am cheated, I just keep mute and walk away.

I don’t even say anything when someone who came in after me is served before me. I am patient and polite and I am prepared to wait even longer for their attention.

The same attitude is what I display when I come into your store or business premises, I don’t act the arrogant, belligerent, or sarcastic customer who tries to draw attention to himself because I consider myself more important than anyone else present and expect you to jump to my ever wish and whim. In fact I am very polite when you get upset because I want to look at more than one product before making up my mind.

I am not like so many other customers who wouldn’t hesitate to get nasty with you if they are kept waiting or don’t get the answers to their enquiry. NO, my dear friend, I am your nicest customer you will ever meet, in fact, I’ll tell you what else I am!! I am the CUSTOMER WHO WILL NEVER COME BACK!!!

You see, I have a different style of behavior. This behavior is also far more deadly than screaming and shouting to vent my anger. A customer who never comes back will make you lose your profits, respect, good name, as well as potential business from other customers who he/she speak to regularly.

I start to amuse myself when I see the vast sums of money being spent by companies to entice customers or attract new ones to come into their store, when they could have saved their company that expense by providing good customer service.

Consider the customer who complains and criticizes you for the bad service you meet out. You ought to be grateful that he is giving you the opportunity to correct yourself and make amends in some tangible way.

For service organization like mine, always remember: The customer, who knows he gets good service, becomes very forgiving when mistakes are made. Just as Jeff Haden puts it in his article 8 Guaranteed Ways to Drive Customers Away –  “Your most profitable customers are almost always long-term customers.” Don’t lose them by making any of the following mistakes:

1.        Change too many players. It’s tempting to assume long-term customers love your brand. More often than not they love your employees. Customers don’t buy from companies. They buy from people-;your people.

Since relationships are the lifeblood of a small business, don't rotate salespeople, customer service reps, or key contacts unless you have to. Do everything possible to protect and foster the relationships your employees forge. Employees are rarely interchangeable where strong business relationships with customers are concerned.

2.      Treat new and existing customers too differently. Offering discounts or incentives to land new customers is often necessary, but existing customers can quickly resent the fact their loyalty is not rewarded.

Think hard about the carrots you offer new customers and make sure you “reward” existing customers just as much-;if not more. Never forget that while new customers create an immediate top-line impact, sales to existing customers typically result in a bigger impact on your bottom line.

3.      Focus too heavily on price. Being the low-cost provider is a definite competitive advantage. Good luck maintaining that advantage.

Somewhere, someone is planning to steal your customers through lower prices. Your goal is to provide the best value. Value is an advantage you can maintain through a combination of price, schedule, service, and relationships. If your marketing focuses mostly on price you'll train customers to constantly look for a lower price, both from you and your competition. Spend at least as much time finding ways to increase value as you do finding ways to lower costs and prices.

4.      Push too hard to grow same-customer revenue. Trying to sell more to existing customers is smart, but don't do so blindly. First know what each customer needs and only then try to meet those needs. Never suggest a product or service a customer doesn't need. And never ask, “Is there anything else we could do for you?” unless you already know the answer and are ready to provide a great solution. Otherwise you're just pushing, and customers hate being pushed.

5.      Accept high employee turnover. While high turnover is a fact of life in a few industries, in most cases employees leave because they aren't treated well. So do customers. Unless systems truly drive your business, you can’t expect to have long-term customers unless you first have long-term employees. If turnover is high, find ways to fix it. Otherwise customer turnover will always be high, too.

6.      Forget what keeps the lights on. Every business has principal products or services that form the foundation of the business. Every business also has key customers that form a foundation. Over time key products and services-;and key customers-;can get taken for granted while newer, sexier, higher profile initiatives get all the focus. Make a list of the customers you can't afford to lose. Then list what those customers buy. That list is the foundation of your business. Never forget what keeps your lights on.

7.       Reward the wrong employee behaviors. This happens most often in sales, like when commission rates are much higher for new customers than existing customers. If that's the case and I'm a salesman, why should I work to maintain existing accounts when I get paid a lot more to find new ones? That approach only works if your systems ensure someone else takes over the responsibility for forging great relationships with existing customers. Think about the incentives you provide and goals you set for your employees, and make sure they encourage the outcomes you really want.

8.      Make problem resolution painful. Policies and guidelines are great for ensuring that employees comply, but a customer with a problem doesn't care about your policies. She just wants her problem fixed. Let employees use complaint-resolution policies as guidelines rather than rules. Give employees the freedom to make judgement calls. Resolving a customer problem or complaint can help your business establish an even stronger customer relationship when you give employees the freedom to make that happen.

 

Wish you good luck in your business!!!

For more insightful piece, visit our blog

YOUR CUSTOMER IS YOUR BUSINESS!!!

On a rather busy Friday last year, I took a quick break from work and dashed to a commercial bank to withdraw funds for the weekend. The cashier that “served” me was not smiling and had a nasty habit of hissing once every 2 to 3 minutes. Irritated, I urged him to hurry up as I had other things to do. He didn’t as much as acknowledge me as he handed me my money in an envelope.

After counting and signing to confirm completeness I started walking towards the security doors, before I could exit I heard the cashier calling me back rather hysterically, embarrassed I returned to the counter and with a puzzled expression I asked “Is there a problem Sir?” Incredulously - this hiss every minute non-smiling cashier - beamed a rather plastic but well-designed smile at me and said in a loud voice “Thank you for coming today Sir, and please do have a nice day” Then sensing my shocked expression he leaned forward and whispered “Sorry about that Sir, but the CCTV’s in the banking hall have been fixed and the MD has mandated us to smile and say that to every customer, I just forgot to say that earlier on; that’s why I called you back”.

My experience with that cashier is a true example of a lack of customer focus. A lot of us have been through so many customer service trainings and still do not get the concept! I can’t say that I blame them though! You can’t practice customer service if you do not understand customer focus.

“Do what you do so well that they will want to see it again and bring their friends.” - Walt Disney

Customer service has to do with the “How” – the “what to do”, the “how to do” and the procedures of serving your customers. On the other hand, customer focus has to do with the “why” – the reason behind this service we are providing. You cannot provide excellent customer service if you do not know why you have to. The above cashier had been told the “what to do” by his MD, but his actions obviously showed he didn’t understand the reasons behind these actions. The easiest way to understand your organization’s customer focus is to take a good look at your company’s Mission and Vision Statements. Those 2 statements provide you with all you need to know about why you serve your customers in the first place.

Obtaining clarity on your company’s Vision and Mission will give you purpose and with that you can serve your customers even better. If your mission is to provide solutions to your customers’ business problems you will not be serving him/her by providing them with more problems in the first place! Like Charles H. Perkhurst said “Purpose is what gives life a meaning”. In this context obtaining clarity about what you do and where you are heading in your company will give you purpose in your work life and with purpose excellent customer service becomes second nature.

“Customer service is not a department, it is an attitude”…Nnanna Nduka-PMP

10 WAYS TO MAKE CUSTOMERS FALL IN LOVE WITH YOUR BUSINESS (culled from https://blog.kissmetrics.com)

1. Treat your Customers Right – Genuinely Interact

2. Don’t Come on Too Strong – Respect Your Customers

3. Always Listen – Hear What Your Customers are Saying

4. Continue to Satisfy – Offer Ongoing Support and Specials

5. Treat a Customer Like a Valued Partner – Communication is Two Way

6. Build Trust – Alert Customers to Large Scale Changes, Good or Bad

7. Be Transparent – Honesty is Crucial When it comes to Mistakes

8. Follow Through on Your Word – Follow Up on Promises

9. Recognize Responsibility – The Customer is Always Right

10. Always Say "Thank You" - Kindness and Gratitude will Take You Far

BUTTOM LINE

If we don’t take care of our customers someone else will!!!