Learning From Business Failures

If you are a leader or practitioner of #diversity, #equity, or #inclusion, do you facilitate activities, or do you create impact? They're not the same thing. In conversation after conversation I've had with DEI teams in the last few months, a common theme is anxiety in the face of change. The language they've spent years using is being forced to change. The activities they've made into their bread and butter are being suspended or forced to adapt. Newer or less mature DEI teams tend to see their activities and their impact as one and the same. They reason that, if they provide event programming and support employee networks, their impact on the organization must be "event programming existing" and "employee networks feeling supported." In the face of change, they grieve not only the loss of the status quo, but the perceived loss of all impact they could make. More established or mature DEI teams see their activities as a means to achieve their desired impact. They're able to identify problems in the organization that need solving and develop activities that best utilize their resources to solve these problems. They reason that, because the organization fails to adequately create belonging for all of its employees due to inconsistent manager support and a company culture that doesn't value people, they can solve the problem by increasing managerial consistency and creating a more people-centric culture. In the face of change, they grieve the loss of their activities—but can quickly pivot to new ones that achieve the same goals. We can learn a lot from these teams. If you want to sustain your impact even through disruptions to your team's typical operations, you can start by doing the following: 🎯 Define the problem you're working to solve, in context. Data, both qualitative and quantitative, ensures that you can identify the biggest gaps in your organization's commitment to its values, understand what areas DON'T need fixing so you can conserve your effort, and can start strategizing about how to solve root causes. 🎯 Pull out the biggest contributors to unfairness and exclusion. It's one thing if a manager in Sales communicates disrespectfully. It's another thing altogether if the culture of the entire Sales team glorifies disrespect. Understanding the scale of the issues we face can help us prioritize solving the biggest issues affecting everyone, rather than chasing symptoms. 🎯 Design interventions, not activities. Too many practitioners create an initiative because that's what they've been asked to do. Think of them instead as interventions: carefully-designed attempts to shift the status quo from Point A to a more inclusive, more fair Point B, by solving real problems that hold your organization back. The more we shift our work toward real impact, the more effective we'll be—regardless of the sociopolitical climate, regardless of backlash. Let's hone our focus.

When I first became a Regional Restaurant Manager, I learned a $340,000 lesson… One of our restaurants wasn’t breaking down boxes. Adding an extra garbage pickup day would cost $1020 a year in that location. Multiply that by all our locations, and it’s $34,000 a year, or $340,000 over ten years. Just because of boxes! Our restaurant group owner took the time to teach the impact of seemingly small decisions. When you manage multiple locations, you must look at everything in scale. Use the big picture numbers to make your point, even when coaching your GMs and lower level team members. The bigger the number, the more you can really drive the point home and gain understanding. As multi-location restaurant owners and operators, it’s crucial to understand how seemingly small inefficiencies can add up to significant costs over time. By paying attention to these details and teaching our team to think on a larger scale, everyone can make more informed decisions that positively impact your bottom line. What cost pitfalls have you noticed that don’t seem significant but can cost big? I’d love to hear your tips and stories! #RestaurantManagement #OperationalExcellence #CostSaving #MultiUnitManagement

DEI efforts in companies are often totally ineffective. Over the last three years, I’ve discussed DEI with hundreds of HR leaders across dozens of industries in more than 15 countries. That’s a lot of research into what works and what doesn't. Here’s what’s broken in DIY strategies 🔧 🔝 There is no focus on the top of funnel Very few people look at the top of the funnel. There’s no way you can increase diversity in your team without being discovered (and considered) by diverse candidates. By only focusing on reactive hiring, you're setting yourself up to fail. Work on employer brand, recognition, employee advocacy, and discoverability even in periods of low or no hiring. 📊 You aren't working with data Despite what many dinosaurs will have you think DEI is not a fluffy topic. The best DEI strategies (the ones that actually work), lead with data. They ask about the candidate demographics on the platforms they use, they A/B test job descriptions to uncover inclusive language, they go through their own application processes, and they report DEI data all the way to board level. 🫡 DEI isn’t recognised as a strategic company wide objective DEI impacts every single part of your organisation. Diverse companies are more innovative, they’re more creative, ultimately diverse teams are stronger teams who build better products. How is this not worthy of being prioritised? 🦕 Your working environment isn't inclusive Without flexibility, you cannot have inclusivity. Without inclusivity, you cannot expect to attract diverse talent. Simple. When companies do hire diverse talent, often these are the first people to leave, but no one it digging into why (hint: it's often to do with inclusivity). There are so many other reasons that DEI is broken, so which ones would you add? 👷🏽 Flexa #DversityEquityInclusion #FlexibleWorking #EmployerBranding

The biggest businesses can get major programmes horribly wrong. Here are 4 famous examples, the fundamental reasons for failure and how that might have been avoided. Hershey: Sought to replace its legacy IT systems with a more powerful ERP system. However, due to a rushed timeline and inadequate testing, the implementation encountered severe issues. Orders worth over $100 million were not fulfilled. Quarterly revenues fell by 19% and the share price by 8% Key Failures: ❌ Rushed implementation without sufficient testing ❌ Lack of clear goals for the transition ❌ Inadequate attention and resource allocation Hewlett Packard: Wanted to consolidate its IT systems into one ERP. They planned to migrate to SAP, expecting any issues to be resolved within 3 weeks. However, due to the lack of configuration between the new ERP and the old systems, 20% of customer orders were not fulfilled. Insufficient investment in change management and the absence of manual workarounds added to the problems. This entire project cost HP an estimated $160 million in lost revenue and delayed orders. Key Failures: ❌ Failure to address potential migration complications. ❌ Lack of interim solutions and supply chain management strategies. ❌ Inadequate change management planning. Miller Coors: Spent almost $100 million on an ERP implementation to streamline procurement, accounting, and supply chain operations. There were significant delays, leading to the termination of the implementation partner and subsequent legal action. Mistakes included insufficient research on ERP options, choosing an inexperienced implementation partner, and the absence of capable in-house advisers overseeing the project. Key Failures: ❌ Inadequate research and evaluation of ERP options. ❌ Selection of an inexperienced implementation partner. ❌ Lack of in-house expertise and oversight. Revlon: Another ERP implementation disaster. Inadequate planning and testing disrupted production and caused delays in fulfilling customer orders across 22 countries. The consequences included a loss of over $64 million in unshipped orders, a 6.9% drop in share price, and investor lawsuits for financial damages. Key Failures: ❌ Insufficient planning and testing of the ERP system. ❌ Lack of robust backup solutions. ❌ Absence of a comprehensive change management strategy. Lessons to be learned: ✅ Thoroughly test and evaluate new software before deployment. ✅ Establish robust backup solutions to address unforeseen challenges. ✅ Design and implement a comprehensive change management strategy during the transition to new tools and solutions. ✅ Ensure sufficient in-house expertise is available; consider capacity of those people as well as their expertise ✅ Plan as much as is practical and sensible ✅ Don’t try to do too much too quickly with too few people ✅ Don’t expect ERP implementation to be straightforward; it rarely is

As a former startup operator, I have experienced my fair share of challenges. Despite the setbacks, I have learned valuable lessons along the way that have helped me grow and improve my business. Here are 5 key lessons I have learned from the failures of my startup: 1. Don't be afraid to pivot. When your original business plan isn't working out, don't be afraid to change course and try something new. This may involve revising your product or service offering, target market, or business model. By being willing to pivot, you can stay agile and adapt to changing market conditions. 2. Seek feedback from customers and stakeholders. One of the reasons startups fail is that they are not meeting the needs of their customers. To avoid this pitfall, it's important to regularly seek feedback from customers and other stakeholders. This will help you understand their needs and preferences, and make any necessary adjustments to your offering. 3. Be prepared for challenges and setbacks. Starting a business is not easy, and there will inevitably be challenges and setbacks along the way. It's important to be prepared for these challenges and have a plan in place for how to overcome them. This may involve seeking support from mentors or advisors or seeking out resources like grants or loans to help you weather the storm. 4. Focus on building a strong team. A startup's success depends heavily on the people who make up the team. It's important to hire individuals who are skilled and experienced in their respective fields, and who are committed to the company's vision and values. By building a strong team, you can create a positive and collaborative work culture that will support the growth and success of your startup.
 5. Be willing to learn and adapt. As a startup entrepreneur, you will face many unknowns and will need to constantly learn and adapt in order to succeed. This may involve learning new skills, adopting new technologies, or seeking out new opportunities. The failures of a startup can provide valuable lessons for entrepreneurs. By being willing to pivot, seek feedback, prepare for challenges, focus on building a strong team, and be open to learning and adapting, you can overcome setbacks and position your startup for success.

Promotions and discounts do not a good business make. Customers are a fickle bunch, and it is your job as a business owner to draw people to come to your business. And, especially in Singapore, where there is often a new restaurant or bar opening, keeping fresh and relevant is ever more important. The question is, are discounts a good way to draw customers is? The short answer, in my opinion, would be no. I probably learned this the hard way as I ran the restaurants and bars in my charge. Discounts can be a way to get people in at certain times, especially when it is quieter, but it can also create certain unexpected outcomes that might not be especially good: 🍻 Training Customers to Expect Promotions and Discounts When you consistently offer promotions and discounts, you inadvertently train your customers to expect them. This can be detrimental in the long run as customers might only choose to patronize your business when there is a discount available. This expectation can lead to reduced sales during non-promotional periods, making it challenging to maintain a steady revenue stream. Over time, this can erode the perceived value of your products or services, as customers begin to view your regular prices as inflated. 🍻Eats into Your Top Line, Affecting Your Bottom Line Offering discounts directly impacts your top line revenue. While you might see a temporary boost in sales volume, the reduced price points mean your overall revenue decreases. This can have a cascading effect on your bottom line, as your fixed costs remain unchanged while your revenue shrinks. The margin erosion caused by frequent discounts can make it difficult to cover operational costs, let alone achieve profitability. 🍻Branding: Discounting Your Brand and Business Discounting can also have a significant impact on your brand's perception. When you frequently offer discounts, customers may start to perceive your brand as less valuable. This can be particularly damaging in markets where brand prestige and perceived quality are important. If customers associate your brand with constant sales and discounts, they may question the quality of your offerings. Maintaining a strong brand image is crucial for long-term success, and frequent discounting can dilute your brand equity. Combining these factors, the long-term effects of relying on discounts to drive traffic to your business are often not great. While it might provide a short-term boost, it can lead to decreased customer loyalty, reduced profitability, and a weakened brand image over time. Instead, focusing on delivering exceptional value, quality, and customer experience is a more sustainable strategy for attracting and retaining customers. By doing so, you can build a loyal customer base that appreciates your brand for what it truly offers, rather than just the discounts it provides. #entrepreneurship #business #lessons

This is one I've been reflecting on for quite some time: my fellow #diversity and #inclusion practitioners are burning out. 🤯😩😵💫🔥 Some reasons behind that are quite obvious: many of us have been put in our roles with little-to-none preparation or onboarding, by business leaders with too much of a sense of urgency given the pressure on organisations to respond to the unprecedented social unrest right after George Floyd was murdered in 2020. Given the lack of planning, many took over roles with loose job descriptions, slim budgets and indifferent peers. No wonder the formula didn't work. There's more to that, though. As this Harvard Business Review article highlights, this job demands constant emotional labour and surface acting (when people try to fabricate positive emotions when they do not genuinely feel positively and suppress negative emotions when they feel them) – particularly for professionals of colour. As a result, frustration and exhaustion mount. Here's what any wise business leader can do to actually set their DEI leaders up for success: rethink how your DEI programmes are designed. When programmes take what’s known as a "discrimination-and-fairness" paradigm approach, DEI leaders experience more burnout because the organisation’s focus assumes employee differences are sources of problems that must be managed. Alternatively, when organisations take a "learning-and-effectiveness" approach, which values employees for who they are, #burnout is less frequent. How does one do that, though? 1️⃣ Conduct regular DEI climate assessments: rely on surveys to get insights, so you can count on effective benchmarks to assess future progress (other than over-relying on subjective notions of success on the role); 2️⃣ Assess and improve HR policies to ensure equity: there's only so much a DEI leader can do if our HR policies are stuck in the last century – we gotta ensure whenever inequities emerges there's a plan to redress them; 3️⃣ Top management must demonstrate consistent, enthusiastic DEI support: racism, sexism, ageism and all the other - isms were not invented by a single person, so can't be addressed by a DEI leader alone. It takes a village and here it's critical that the C-suite not only leads by example, but also ensures there's clarity that complacency or indifference to DEI have no place in the organisation; 4️⃣ Institutionalise DEI roles with the power and resources to effect change: give us the money and access to the resources needed to have the impact that's envisioned. We gotta have a seat at the table if we want to really walk our talk; 5️⃣ Provide resources for social support when emotional regulation is necessary: this job is tough! Ensure DEI leaders have access to peer networks, external coaches and/or industry mentors. We gotta help each other here. What other tips would you add to this list, based on your experience?

Every ending is a chance for a brilliant new beginning. Not long ago, my team came across a surprising email on our competitor's mailing list... An announcement that they were closing shop and offering a final 50% clearance on their stock. It was a wake-up call. Instead of just watching them fade away, I reached out to the company owners. They confirmed that the business was shutting down. Rather than taking on a failing enterprise, we saw a golden opportunity. We negotiated to acquire their key assets... Their domain, email list, and online presence to boost our brand visibility. Given that around 40% of our trade comes from the US, this move has significantly strengthened our position in the market. Here’s what I took away from the experience: 1/ Spot Opportunity in Adversity: When competitors crumble, it might be your moment to shine. 2/ Act with Clarity: Identify what truly matters. We didn’t need the whole business, just the assets that could drive our growth. 3/ Embrace Strategic Acquisitions: It’s not just about expansion; it’s about reinforcing your market position with the right resources. Have you ever turned a competitor’s setback into a breakthrough for your business?

Despite widespread recognition of the benefits of diversity, many believe that promoting or hiring individuals from underrepresented groups solves the issue, but they often overlook the need for sustained inclusivity. Promoting diversity without creating an inclusive environment diminishes the long-term success of diversity, equity, and inclusion (DEI) initiatives. Even when diverse individuals reach leadership roles, many face unique challenges. Often labeled as "DEI hires," they encounter extra pressure to perform, making it difficult for them to succeed without proper support. Businesses tend to prioritize diversity but neglect the equally crucial aspects of equity and inclusion. This lack of support leads many leaders from underrepresented backgrounds to leave their roles. To ensure sustained diversity, equity, and inclusion, companies must provide ongoing resources such as skill development, equitable compensation, and inclusive workplace practices. Leaders should foster an accepting environment by soliciting and acting on feedback. Ultimately, DEI initiatives require intentional, company-wide efforts to create lasting change in leadership diversity. #diversity #equity #inclusion #belonging

This "disillusionment with DEI" we're seeing today reminds me of the Ostrich Effect, where both companies and DEI professionals are acting like ostriches. Companies rebranding DEI into some "meritocracy excellence" fluff or those completely halting investment in it are burying their heads in the sand to avoid acknowledging that people are diverse and will continue to have different needs and access to opportunities. By ignoring this reality, they miss out on their true organizational potential. Younger employees will demand it even more, leading to a loss of competitive advantage in the future. This disillusionment stems from a misunderstanding of the business case for diversity. It doesn't come from merely having different faces in the room. You must strategize, form teams wisely, address systems and processes, and grow leaders who can create a climate of diverse information exchange. Yes, it takes effort. But the collective intelligence from well-leveraged diversity is your best business case, yet you've never aimed for it because it's unknown and hard. The same goes for DEI professionals who have fed companies false promises. The intention to engage as many people as possible in much-needed changes was noble. However, some of us tried to deliver results alone, without a budget or solid competence, which meant failure from the start. Now, as we observe disengagement, we again bury our heads in the sand as if there's no problem. There is: things don't work this way, and our task is to change the approach, not the mission. We need to think holistically, introduce change consciously, use an evidence-based approach, plan strategically, manage stakeholders, work with influence, and not promise to deliver anything without the resources. DEI is a new field, and it's no surprise we're all learning as we move forward. That's normal. What's not normal is to remain rigid in our thinking and approaches. Diversity work, in my opinion, starts with mindset work. It begins with thinking in first principles, then in systems, realizing cognitive and emotional processes involved, mitigating bias in our judgment, self-discovery, understanding the social context and power dynamics, discovering others who are different from us, learning evidence-based methods to address decision-making pitfalls, and finally, acting thoughtfully. It's not as fun as taking an industry report that says diversity drives performance and buying one-off easy solutions, I get it. But ignoring it like an ostrich moves us nowhere, and we've all got a bright future to move towards together. ________________________________________ Looking for more insights on better thinking? 📨 Join my free newsletter: https://lnkd.in/dsyQSRxV