Are you stuck in a business rut? Ever heard the saying ‘If you always do what you’ve always done, you’ll always get what you’ve always got’? It’s a pretty well known saying that can really apply to a small business owner. Read on to find out one of the key mistakes a business owner can make, and how to avoid it:

Picture the scenario, you’ve built your business from ground up. You’ve slogged 16 hour days to get it where it is and you know every detail of every task, where every penny goes and how every last cog turns. You know what’s best for your business, right? Wrong.

During their research into managers Pfeffer and Sutton (2006) found that many ignored new evidence that was relevant to the decision making process. They found a number of reasons why managers did this;

Problem: Managers trust their own personal experience more than they trust hard facts

This is the situation where no matter what the evidence the manager or business owner doggedly refuses to acknowledge the evidence, instead believing that their knowledge of the business is superior. It might also be the case of where the business owner prefers to act on gut instinct. This is why consultants and outsiders can often look at your business with a critical eye and immediately see what improvements are required.

What action can you take? Look at the hard facts. Are there products, processes or people in your business that are no longer working efficiently or effectively?

Problem: Managers prefer to do what they’d always done

Managers would rather do things the way they’d always done it instead of testing new methods or instigating change. This results in methods that become dated and processes that become inefficient and ineffective.

What action can you take? Remember ‘If you always do what you’ve always done you’ll always get what you’ve always got’. Therefore you need to look to the evidence and make a change. Make one change at a time and assess the results before you move onto the next change. This process applies to everything from marketing to HR.

Problem: Managers are susceptible to ‘expert advice’ and consultant solutions

Once you’ve realised you need advice, there is one further thing to remember. Be wary of taking a consultant’s advice on face value rather than assessing the quality of the advice in the context of your own business. Unless all other factors are equal, advice cannot be universal. Results will always differ business to business as external factors differ.

What action can you take? Listen to advice. Consider the advice in the context of your own business. Test changes. Keep positive changes, drop negative changes. Rinse and repeat. Return to advisers that have been a good fit for your business.

Problem: Managers rely on hearsay and the ‘way things have always been done’

This type of manager fails to innovate, keeping things the same based on little supporting evidence and ultimately holding the business back. This trap is an easy one to fall into as a small business owner as the assumption is that you know best and staff will find it difficult to question new practises and suggest new ways of doing things for fear of negative repercussions

What action can you take? Be more open to new ways of doing things. Create a culture where new ideas and innovation amongst staff is encouraged. Trial new practises. Reward staff for new ideas.

Problem: Managers copy larger businesses

Managers copy the practises of larger businesses without thinking about the impications changes would have on their business. Managers act as if all factors are equal and then wonder why the impact of change is negative.

What action can you take? Consider everything you learn and see in the context of your own business. Look to your own facts and figures to see how change might affect your business.

ref: Management an Introduction by David Boddy

Hard Facts, Dangerous Half-Truths And Total Nonsense: Profiting From Evidence-Based Management. Pfeffer and Sutton (2006)

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