Every calling is great when greatly pursued. - Oliver Wendell Holmes, Jr. (1841-1935)

Learning From Failure

Here’s a dismal statistic for you: Of new businesses that fail, 80 percent do so within first five years. Why?

According to The Executive Committee, a San Diego based organization that works exclusively with its more than 6000 member CEOs, reasons for business failure are not complicated and tend to surface repeatedly. Ultimately, many may be placed in one of two categories: systems or leadership. Each category has a number of components, any of which can sink proverbial ship. This list is not exhaustive, but should give you an idea of critical elements that, when missing, lead to failure.

System Meltdown

Systems are “pieces” that allow your business to function effectively and efficiently. They are “how” things get done. Failure in systems will surface in:

* Lack of knowledge. Knowledge is an important part of any enterprise. It may take form of marketing knowledge, product or service knowledge, or even financial knowledge. Who are your customers? What are they looking for? How do you read a financial statement for true story it tells? “Knowledge is power”- power to succeed.

* Lack of policies and procedures. Successful businesses provide a clear road map of how work gets accomplished in their environment. How and when will you bill clients for your services? Will you offer a satisfaction guarantee? What about refunds? Without such maps, costly mistakes can happen.

The Critical Role of Leadership

Leadership has, without doubt, biggest impact on business success or failure. Even though you may be a sole proprietor, your leadership skills are crucial to successful operation of your business. The forms of leadership or lack thereof are:

That information is stunning because it demonstrates need for pro-active communication and conflict management training in workplace. Equip yourself with these skills. They will be endlessly useful in all areas of your life. When I work on these skills with corporate groups, you can feel relief in air. Folks feel a greater sense of self-confidence when they have skills to confront difficulties. Makes sense, doesn't it? If your workplace is suffering, work with your employer to have issue recognized and addressed. Just one or two days of training can make an enormous difference.

Think of lack of productivity that stress of conflict creates. Who can attend to their work when they are concerned about possible confrontations, accusations or 'cold shoulders'? People have feelings. Feelings are powerful. Fear is one of most powerful, and that's what's showing up when you work in a tension-filled environment. There is enough tension in creativity and deadlines that normal, productive work creates. Who needs tension caused by fear, poor communication and small minds?

The first and most important thing to do is to exam your own behavior. How are you treating that person you perceive as difficult? Is there anything in your posture, facial expression or tone of voice that prevents friendly interaction? Often, when you have already decided that you don't like someone, or that they don't like you, that attitude is conveyed in your non-verbal communication. Work on yourself first.