Consider this scenario. At the end, there is a useful question to ask that can help solve this person’s quandary.
Sarah is the owner of a wildly-successful, 25 year-old structural engineering firm based in Boston. Her buildings are so amazing they’ve been featured in many popular engineering magazines and journals. What sets Sarah’s business apart from every other firm is not just their high quality of product, but their high degree of customer service. This is not your everyday customer service either. I mean her staff would drive down to North Carolina at 3:00 in the morning to correct the position of a weight-bearing wall because it was a ½ centimeter different than the specs. This level of service has been part of her brand for decades, and her customers love it and have come to expect it.
Over the past year, it has become harder and harder for Sarah’s firm to offer that same, consistent level of over-the-top customer service and still be profitable. She’s been racking her brain, searching for ways to keep her business out in front of the pack.
Two years ago, she discovered a new niche market, and decided to capitalize on the opportunity by creating a small division within her existing firm. This new division partners with other companies that construct commercial buildings in need of final touches before occupants can move in. The building owners contract her company to go in, retro-fit and customize the existing spaces to make them more aesthetically-pleasing to the new occupants. This new division doesn’t require the same level of customer service as her core business due to a few key factors: 1) Because the occupant is choosing from a handful of pre-determined options, there are fewer situations where they would want to change something once it has been chosen. Now her production and delivery cost are 70 % lower. 2) Because the parts (exposed beams, cabinets, etc) are pre-fabricated in bulk, she can also get the job done in a fraction of the time it takes any of her closest competitors. 3) As a kicker, her clients tend to be high-end building companies that pay her directly (and handsomely) to work with the occupant as a part of their leasing/purchasing agreement. All of these factors together result in the entire division being 4 times more profitable than expected, and Sarah can’t keep up with the work orders!
This is not a bad problem to have, but it does create a major dilemma for her. She wants to keep her core business afloat because it’s been her baby for 25 years, and it’s what she’s renowned for in the industry. She also wants to expand this new division because it’s an incredible opportunity, and it’s growing like gangbusters!
What to do? What to do? The better question is – What would you do?
There are many ways to approach a solution for this scenario. Here is an important question you can ask that might help Sarah look at her challenge differently:
Question: “Sarah, if you fired yourself today and a new savvy business owner stepped in and took over, what would be the first major decision that person would make to get the business back on track?”
Sarah’s Answer: “They’d probably drop or scale back the old structural engineering business and focus on the newer and more profitable division. There’s virtually no competition there, it stands to make a lot more money, and it’s less of a headache to operate.”
Of course, the solutions to this scenario are infinite, and one would ultimately need a lot more information to make a sound decision. However, if you find yourself in a situation where you’re getting bogged down with making a clear decision, it’s always helpful to put some distance between you and the challenge. This is especially true if you’re a little attached to the project, which is usually the case.
If this situation arises, consider asking yourself:
“If I were to fire myself and someone who really knew what they were doing stepped in, what be the first thing they would do?”
Even if you aren’t a business owner, this tactic can help you make a better decision in a difficult situation by framing your challenge from a 3rd-party point of view, thus detaching yourself from personal feelings that are clouding your clarity. It might not result in a major breakthrough, like it did in Sarah’s case, but it’s a great way to get some perspective on a major challenge that’s got you completely stuck.
To get more tips like this, check out the book; Decisive by Chip and Dan Heath. It’s a great read with practical, helpful strategies for making critical decisions in your business and personal life.
