Surviving and Thriving in the Face of Failure – Post #4

Mistakes Happen!

Remember all the buzz about e-commerce and e-business? It was before the Internet boom went bust and it seemed like everyone in the tech space was jumping on the e-hype bandwagon out of fear, greed or confusion. I confess that I, too, got a little sucked into the e-hype and made a somewhat hasty decision to split our business into two distinct divisions: one focused on the tech training we have always offered and the other on our consulting services, which we re-branded “go-e-biz.com.”

It was a catchy little name but it confused our customers. Were we abandoning our training business? Was our consulting service changing into a different kind of service? Were we only interested in clients who wanted to sell something over the Internet?

The answer was “no” in all instances, but the very fact that we had changed our name invited questions and confusion. Ultimately, we chose to “un-create” the brand change and returned to our original name – Intertech — for both aspects of our business. This was a money- and time-intensive exercise that could have been avoided if I hadn’t allowed my emotions to pull me into a hasty decision based on the current business climate (I now can wisely recognize in hindsight!).

As part of the “un-brand” process we did come up with a marketing slogan to help clients and others understand both aspects of our business: “Instructors who Consult.  Consultants who Teach” And by emphasizing the connected nature of our business, we’ve been able to build clients and credibility for both parts of our company.

The lesson learned here was to not buy into the hype, to ask more questions before getting into something, and really thinking through the long-term benefits of these larger strategic decisions. I think it also illustrates an aspect of resiliency: not getting stuck or derailed by a mistake.

Epilogue: A few years later we were looking to acquire another firm. I was very realistic about its potential value to Intertech, the long-term potential, and the need to keep the partners of that firm engaged.  All of those things were part of our offer but the other firm wasn’t interested.  Even though I had spent months trying to make it happen, in the end I knew it was best to walk away from the deal versus to push it for emotional reasons.

Surviving and Thriving in the Face of Failure – Post #3

When stuff hits the fan, don’t go mad!

Losing a major client probably is among the most painful of business failures. It happened to my firm in a spectacular fashion about 15 years ago when we were still starting out.  At that point we had six consultants and trainers working for us. When we lost a major piece of business from our largest client we had two choices: lay off four people (decimating our business in the process) or find some new clients – fast! I’m happy to report that we were able to replace the lost business in time to keep all of our people on board, but it was a difficult and stressful time that I hope never to repeat again.

During the crisis we instinctively understood that transparency with our folks was critical and we were diligent about keeping them updated on our efforts to secure new business. We also worked extremely hard to bring in new clients in record time, which included talking with everyone we knew who might possibly help us meet our goals.

After the crisis passed and we were able to think more long-term, we were determined never to let it happen again. Among the ways we used that experience to build more business resilience:

• Diversifying our accounts so that no single client represented more than 10% of our business
• Anticipating “worst case scenarios” and coming up with response plans well in advance.
• Focusing on positive action versus allowing ourselves to be “jumpy” or overexcited. I have to confess that this was a personal lesson for me as well. I was a newer leader during that first major business crisis and let panic dictate my actions. I relentlessly hounded our ace sales leader about the new client situation as he worked around the clock to secure more business for our soon-to-be-laid-off consultants (sorry about that Ryan!).

Looking back now, I can see how this challenge forged growth for my company and me.

While painful, it laid the foundation for the successful business we are today.

Next post: Learning from emotional mistakes.