What Are You Building Without Being Aware?

“Most people overestimate what they can do in one year and underestimate what they can do in ten years.” ― Bill Gates

“This cuts two ways.” — Christian Muntean

I practice Spanish for 3–5 minutes a day. It’s barely anything. But, I recently took a short work trip to Mexico. My Spanish wasn’t pretty, but I was able to get around and do my business without a problem. And I didn’t have to play charades even once.

It helps that I studied Spanish in high school and college. But those were decades ago. Language is a perishable skill. I want to retain if not grow in my ability with Spanish.

So, I practice Spanish. A little bit. Consistently.

Success (and failure) is often the result of degrees or increments. Small changes that eventually add up over time.

This concept is well captured in Alan Weiss’ 1% Solution™. Similar to the idea of compound interest — Alan frames it this way: If someone only makes a 1% improvement each day, in 70 days, they’ll be twice as good.

It’s the concept that matters here. Not the precise math. The point is continuous incremental improvements add up significantly over time.

The Dark Underbelly of The 1% Solution: 1% Erosion & 1% Compounding Problems

Here’s the problem with the 1% Solution. It can work in reverse. If we lose 1% each day, in 70 days, we could lose twice as much.

It might be a 1% erosion. Or it might be a 1% compounding problem. But slowly and surely, it’ll cost you.

I often drive past a particular local business. That business should be a gold mine. And perhaps it was for a while. The concept is a bullseye. The market is perfect. They have a monopoly. The location is ideal. What they sell — people want.

But they’ve deferred maintenance for so many years, they can’t effectively provide their service. Almost all their infrastructure needs to be replaced. It’s past fixing. As a result, they lose many customers.

Additionally, if they were to attempt to sell, it would be difficult, if not impossible, to find a buyer.

For the lack of not investing their 1% into upkeep, they risk losing 100%.

For Leaders, Here Is The Application:

One of the biggest challenges for leaders is — not leading.

If we consistently ignore or defer providing leadership, management, or maintenance — over time, the consequences can build up.

These problems don’t go away. Sometimes they go dormant. But they’ll wake up. And they rarely do at a convenient time.

The solution is — lead. Provide active leadership. Especially in the areas you prefer to avoid.

I couldn’t tell you how many leaders have told me that their organizations were riding high — without problems one year before they imploded due to internal, avoidable issues.

And it isn’t that these leaders didn’t lead. They did.

But they didn’t provide leadership in uncomfortable, boring, or personally challenging areas.

They led where it was easy, where the grass was already green, or where the birds sang to them. They avoided what smelled, seemed messy, or appeared threatening or confusing.

It cost them.

Don’t Despair!

Here are 1% Solution examples to help you avoid 1% Erosion or 1% Compounding Problems:

• Prepare personal finances years before retirement or exit.
• Develop strong financial management practices.
• Do your taxes on time.
• Build a culture of accountability.
• Build a culture where behaviors and outcomes reflect organizational values and vision.
• Manage toward outcomes or results.
• Use hiring, orientation, and training practices that are in alignment with organizational values and vision.
• Build and maintain a technical, management, and leadership bench.
• Consistently invest in staff development. You probably say your people are your most important asset. Nurture that asset.
• Address or remove toxic staff, customers, or vendors.
• Resolve conflicts.
• Have difficult conversations.
• Build and maintain policies, processes, or procedures that support your value, vision, and growth.
• Review your compensation philosophy and structures regularly.
• Diversify your customer base or business model.
• Maintain your equipment and facilities.
• Plan for capital upgrades.

And so on. Add to or create as needed.

This is a list of items that will make your organization stronger. There is no mystery to this. Some of them can be deferred for years and even decades before you truly feel the cost.

Does This List Seem Overwhelming?

Remember the 1% Solution.

Identify what needs to be worked on and start. Just try to achieve 1% progress each day. Work with your team so that everyone is pursuing 1% progress. In the beginning, progress may not be evident.

But give it just a little time — and you’ll see the difference.

Take good care,

Christian

Originally published at https://www.christianmuntean.com on October 18, 2022.