Definition of Business Insanity
​by Hugh Eason

The definition of Business Insanity is running a company the same way year over year and expecting different results.  This is very similar to what is called Albert Einstein's Parable of Quantum Insanity, though I am not completely sure if he deserves all of the credit.  History has shown that Greek philosophers have studied this concept for centuries, but many businesses today still continue to challenge this concept, believing they will be able to break the cycle.  Truth is, two out of three new business fail in the first 3 years and others limp along for decades, losing money because of this Business Insanity.  At FUNEL Business Management Group, we are committed to helping our clients break this endless loop of futility. 

Executive Leadership of the Company

The Executive Leadership team is the most important group in a company.  The number of people on this team is not as important as the roles and responsibilities each one plays in the company.  Every company needs a visionary leader, a financial gatekeeper and an operational watchdog to function and operate.  In a small business, a single individual may own all three roles but as the company grows it is critical that the individual realizes they cannot continue to wear all the hats in the company; by adding competent and trustworthy team members with clearly defined roles and responsibilities will ensure the company can grow and be successful. 

The leadership team is what guides the company to move forward by developing new products, expanding into new markets, and keeping employees motivated.  This team needs to speak with one voice and agree on the direction of the company while constantly monitoring the progress of their vision and provide guidance along the way.  It is not an easy thing to do, if it was, every company would be on the cover of Fortune magazine.   

Management of Teams

In the real world, teams consists of people from various ages, experiences, and personalities; a good manager is able to lead and motivate team members to accomplish clear and defined goals.  Managers need to develop an environment that exhibits respect, trust and accountability for everyone on the team.  

Companies need good managers (they can recruit them or develop them from within) to lead teams, departments, and projects to be successful.   Managing people may possibly be the most difficult job in someone's career, as there are no set rules or procedures to follow.  Unfortunately, no one is born with the skill to lead and manage people; it is learned through experience and training.  The best managers are continuously learning how to be better at theirs job and sharing this information with the next generation of managers, most likely their team members.

Product Development

Most companies start with the idea that they can do anything and everything for the customer, that making the sale is the most important aspect of the business.  More likely, if the product or service is not unique or have added value, the customer will not buy it.  The product or service needs to be the driving factor for the existence of the company, not the other way around.  

Developing a product or service requires a focused effort on who the customer maybe and how it will help solve a problem they are having today.  The phrase "jack of all trades, master of none" can be used to define many failed products and companies.  The key question that needs to be answered before developing a product is what problem is trying to be solved.  A quick search on the internet will show a plethora of useless trinkets and trash destined for the landfill or recycle bin, make sure that your product will be something that someone really wants and will be used for good.

Sales and Marketing

"Things would be great if we only had more sales"; a phrase spoken by every business owner; but how does a company go about increasing its sales?  It is very important that the Sales and Marketing team be involved in the development of the product or service for the company.  They are the only team at the company who knows the wants and needs of their customers personally.  They can share with the customer the excitement of the next great product from the company and how it will help solve their problems.

Sales and Marketing's key role is to get the word out about the company and its great products.  They must build the excitement and customer want by developing marketing campaigns, trade shows, social media announcements, and other forms of positive communication with the customer.  Nothing will kill a sale quicker than an uninformed and unmotivated sales person in front of a potential customer.  

Company Workforce

Companies often say that their most valuable resource is their workers, but for years employee surveys have shown the opposite.  Many employees say they feel disrespected, marginalized, and alienated from the their company's leadership team and feel they are just a number in the company.  This is where management and the workers clash; management believes their workers are not working hard enough and workers feel management doesn't care or respect them; and this is all before any discussion about wages and benefits.

Keeping company moral high in the workplace is a difficult task for all leadership teams.  Issues such as company leadership, sales, production, work efficiency, wages and benefits, or co-workers can be the source of low moral and confidence at a company.  It is important that these issues be addressed openly and honestly in order to develop corrective action plans for the company to move forward.

Customer Service

This group most likely does not receive enough attention and evaluation from company leaders.  This group, along with Sales, directly interfaces with the customer.  Though Customer Services may not directly effect current sales and revenues, it does greatly impact future opportunities with current customers.

Keys to future business with existing customers fall solely on the experience they had with their last purchase.  Usually it is the customer service team that interacts with the customer to deliver the product on time and resolves any issues they may encounter during the process.  It is vital for a company to have a customer service team that is knowledgeable, understanding and personable as well as empathic to customer issues.  Remember: It is easier to keep existing customers than finding new customers.

Competitive Study

A company can become stagnate over time, offering the same products and services they have been for the last 50 years.  One way to refresh a company's business process is by studying the competition.  Learning from others mistakes can help your company avoid the same costly errors and while possibly improving the design and developing a better product at the same time.  ​By keeping an open mind to innovation and improvement, a company can secure its sustainability and growth for the future.