Surprise Management: Diversify to Weather Tough Times

Today’s businesses have used Change Management and Risk Management with varying degrees of success. While these strategies can help companies prepare for an unknown future, they fall just short of accomplishing the strategic goals that 21st century companies need if they are to keep pace with rapidly changing market conditions. What will it take to fill the gaps in these two theories? Surprise Management.

Background

We all know how disconcerting change can be. And when we add surprise to the equation, we face a huge organizational challenge. Uncertainty, unpredictability, and our all-too-human inability to dictate outcomes are facts of life that organizations must address if they are to thrive.

The natural fear of uncertainty often leads organizations to implement uncertainty-reduction (or risk-management) measures—and hence the development of Risk Management theory. Many have tried to eliminate “the surprise factor”—with varying degrees of success. One method that’s been suggested for eliminating surprise is to anticipate surprises before they happen and take appropriate steps to minimize their occurrence—certainly a commendable goal. Yet, a surprise by its very nature cannot be foreseen. (Otherwise it wouldn’t be a surprise.)

A more realistic way of phrasing the above goal might be to say that reducing surprise involves an attempt to predict what could go wrong (i.e. to project risk) and put in place preventive measures against these potential problem occurrences—measures which not only minimize the overall number of occurrences but also reduce the number that are actually surprises. It is only in this sense that Risk Management can “eliminate the surprise factor.” While it would be impossible to anticipate the surprises themselves, this thorough projection of future possibilities would undoubtedly help eliminate some surprises, simply because the organization would now be aware that these eventualities could potentially occur. Yet, the success of this approach in managing surprise is limited.

In contrast, Change Management, by providing both managers and workers with the tools they need to handle the reality of change across a rapidly evolving business landscape—and perhaps equipping them for various specific future eventualities—can at least help an organization prepare for surprises, if not reduce the frequency of their occurrence.

Surprise Management: A More Comprehensive and More Flexible Approach

Surprise Management—a concept which is thoroughly analyzed in a 2005 article in the British Journal of Management, “Surprises in Management and Organization: Concept, Sources and A Typology”—presents the rationale for addressing unwelcome (and perhaps even welcome) surprises through the concept of diversification (despite the authors’ non-use of that specific term).

The authors define surprise as “any event that happens unexpectedly, or any expected event that takes an unexpected turn.” The main point of the piece may be distilled into the following brief summary: Because unpredictable events and unexpected turns of events (aka, surprises) cannot be precisely controlled, a more diversified and more flexible approach is needed for an effective response.

As the authors state, “Surprises can potentially result in organizational catastrophes (e.g., Shrivastava, 1992),” and they therefore conclude that “rather than merely insisting on the prediction of surprises, organizational researchers should investigate how organizations might develop the resilience and mindfulness necessary to deal with unanticipated events.”

Surprise Management Tools

A few surprise-management strategies the authors recommend for developing such mindful resilience follow:

  • Bricolage (constructing a solution from whatever diverse resources may be at hand)
  • Improvization (“the ability to access creativity in the moment and under pressure, to resolve or direct the resolution of a situation to meet [company] objectives…”)
  • Distributed decision-making (a decision-making process [that is] distributed across multiple participants, each of whom contributes to the final decision by performing one or more tasks)
  • Minimal structuring (implementing “a set of consensual guidelines[,] agreements, [and] co-ordination devices that attempt to focus the activities of people around a common set of goals and deadlines without limiting their discretion to best decide how to reach these goals)
  • Dynamic adaptive capabilities (“the capacity of…institutional approaches to permit actions that are effective ‘adaptive’ responses to changing environmental circumstances”)

The above approaches combine to provide the diversified organizational response that today’s enterprises need to skillfully manage the surprises that might otherwise prove catastrophic to their successful operation—helping them not just survive, but thrive.

About the Author: Guest post contributed by Sarah Carling, on behalf of Injury-lawyers.net.au.

Forex Brokers

If you are looking to invest your funds into something that’s promising and can double your investments in the least amount of time possible, consider Forex trading. It is a fact that Forex market is a continuously growing and ever-evolving industry. Though it is a multifaceted one, one thing that can describe Forex markets is that they are lucrative. Still, complexities and obstacles should be considered as well since the market won’t just hand you money for simply investing your money and time on it. Arriving well prepared, skilled and knowledgeable will help you protect your investments as well as increase the potential for revenues.

It is highly recommended to go for appropriate consultation with a financial adviser and educate you regarding the trade. If after the consultation you are ready to step into the plate, you will need the guidance and expertise of a good Forex broker by your side. You can’t initiate trading foreign currencies without the help and services of a broker, especially as a novice. Remember, even the most skilled and experienced traders and investors can still make erroneous decisions that can cost significant amounts of money. Though it is quite important, one shouldn’t rush towards finding and choosing a Forex broker. You need to guarantee that the broker that you want to employ is listed among the premier Forex broker directories.

Employing a reputable and reliable broker isn’t something that magically happens overnight. You will require devotion of your time, effort and attention to look for someone who can render you with the most suitable service for your needs. One should realize that in order to find and work with a good broker, you’ll first have to know what a good broker does and how they work so that you can make educated decisions.

If you don’t desire to spend huge amounts of your time and attention looking for a good Forex broker, you will need to tap into the right sources accessible online. A fast online search will bring you a variety of brokerage firms that will enable you to bypass the hassles of finding sources and leads through manual search options. Furthermore, you can make your final decision reliant upon the rankings that are rendered by a few independent agencies.

There are many benefits entailed from hiring a Sunbird forex broker. One is that you are partnered with a professional whom will act as a mediator between you and the buyer or seller of the foreign currency, making lines of connection easier and proper. Another is that you are educated by the broker on key trading strategies and help you make more profitable and educated decisions.

5 Budget Management Tips for the Small Business Owner

Running a small business means pushing your products and services against the odds created by big business and natural competition, making every dollar worth counting at every turn. Limiting overhead and increasing profits are mainstays for all businesses but their minute importance is even more pronounced for small businesses, with a single bill or lost sale potentially making the difference between success and failure.

If you’re a small business owner looking to exert greater control over your budget through new tools and ideas, consider these five budget management tips for small business owners:

1. Separate Personal and Business Finances

Separate Personal and Business Finances

Keeping the money you use for home expenses separate from that intended for business is an absolute must for long-term success. Good accounting entails knowing exactly where expenses and profits belong and mixing these different financial areas, whether on paper or only in your mind, has the potential to lead to disaster.

2. Maintain Six Months of Expenses

Maintain Six Months of Expenses

While often easier said than done, having ample cash to fall back on is of absolute importance if you intend to see your small business to long-term success. Even the most well-thought out startups require time and patience to turn a profit and having money put away for both personal and business expenses to help you through the initial tight stages will help both you and your business to remain viable from opening day onward.

3. Become a Professional Accountant

What better way is there to manage your finances accurately than by becoming a professional yourself? Small business owners in the United States are able to study for and complete the Uniform Certified Public Accountant Examination at any time, giving you the cutting-edge knowledge and tools required to take full, hands-on control over your finances, both personal and business. You’ll need to pass cpa exams in order to do that though.

4. Take Your Taxes Seriously!

Take Your Taxes Seriously!

Whether you take our advice above to consider becoming a certified public accountant or you hire an outside professional to manage your finances, be sure to take your tax returns very seriously. This challenging requirement of being self-employed is more complicated than seemingly endless tax returns; polls show that one of the biggest tax problems faced by small business owners is failure to submit returns at all. The most cited reason for non-submitted taxes is a failure by the business owner to save taxes owed throughout the year only to balk at the total amount when that lack of financial management makes paying a tax bill impossible. To avoid such problems, always be sure to calculate the taxes and other government premiums owed on a regular basis throughout the year, maintaining accounts to hold those funds until the time that they’re needed.

5. Reassess Your Finances Regularly

Reassess Your Finances Regularly

Too often small business owners find themselves needing to review their expenditures when financial difficulty presents itself, leaving months or even years of unnecessary spending in their wake. To avoid wasting even a single dollar on unneeded overhead, take the time to review the money you spend on maintaining your business and make decisions to reduce or even eliminate costs whenever possible, avoiding uncertainty in the future and helping your business to remain viable even during the tightest of times.

Conclusion

While small business management does present difficulties not typically found in the workforce, creating and sticking to a well-thought out plan is the key to maintaining your freedom from the daily grind, making it a more than worthwhile endeavor for any entrepreneur. Follow the tips laid out above, recognize and tackle the hurdles unique to your niche and give your small business your all in an effort to ensure the best possible chance of a successful financial future!

About the Author: Jessy is a small business owner working full-time in the Internet

Image Credits: 1, 2, 3, 4.

The Dual Entrepreneur: How to Balance Running Two Companies at Once

In general, entrepreneurs are idea people. They don’t necessarily have to be creative in the classical artistic sense, but they have to be flexible, self-motivated, and able to follow through on a good idea.

Many budding entrepreneurs hold themselves back by spreading their work too thin. Do you think Mark Zuckerberg would be orchestrating billion-dollar buy-outs if he’d focused half his energy on Facebook, and the other on opening a pizza chain?

Getting a business off the ground requires your full attention. Once it’s up-and-running, however, it’s possible to expand. Just look at many of the world’s most famous athletes and musicians who balance careers in Hollywood and on the playing field. Mark Cuban is a terrific example, juggling ownership of the Dallas Mavericks NBA team, Landmark Theatres, and chairing the HDNet cable TV station.

So how do you get to be the next Mark Cuban? While I’m far from the Forbes 500 list, I can happily say that I’ve successfully managed to maintain two profitable businesses for the last six years.

entrepreneurship tips
Image: @boetter / Flickr

Believe That You Can Do It

I opened my first business when I was 12-years-old in my home country of Iran. Raised by a father with a strong emphasis on self-sufficiency, two partners and I began a small potato chip factory. We hired a few employees and sold chips to supermarkets and local schools.

That same spirit of motivation led me to dentistry school. Nearly two decades ago, with a fresh doctorate in hand, I threw myself whole-heartedly into my practice. Over time, I built wealth that needed to be invested. Wall Street didn’t appeal to me, so I bought real estate. When the housing market dropped, I took the wake up call as a sign to diversify.

Like any entrepreneur, I always have my eyes open for new ideas with revenue-generating potential. At one point, I recognized a need for a glass and mirror provider in our market, found a suitable partner, and went into business again. Although my wife might say I’m addicted to work, my dentistry practice never suffered.

Love What You Do

If owning a dentistry office and running a glass and mirror supply company bored me or stressed me out, I’d quit one or the other. Because I’ve found industries that appeal to me, I rarely feel like I’m actually working.

Let’s put it this way — my son plays video games for an hour a day. He says it’s his ‘down time.’ My wife watches soap operas for an hour each afternoon that’s her down time. And what I do in front of the computer for my businesses is truly a down time for me. It’s not work. If it was, there’s no way I’d be able to do it. At home on the computer, I can casually answer emails and truly relax. I enjoy what I do, so it’s more of a game than anything.

Sure, it’s a cliché, but I fully believe the old quote that says, “Find something you love to do, and you’ll never work a day in your life.”

Don’t Rule Anything Out

Ten years ago, I would never have imagined I’d own a glass and mirror company. When the opportunity arose, however, I didn’t overlook it because of my lack of expertise in the area.

It’s not so much the product that matters when you’re an entrepreneur, but the business itself. As long as you know how to run a business and you understand the numbers and how to market and sell, then the product just has to be something that interests you. It could be glass or wood or anything — if you understand business and recognize a need, you’ll succeed.

For me, personally, dentistry and glass sales go hand-in-hand for my lifestyle. Being a dentist is a physical vocation that fills my days, while glass and mirror sales are a number-crunching, analytical job that I do in the evening. It’s like a hobby.

If you already own a successful business and another opportunity arises, don’t run away from it for fear of being over-burdened. As long as you enjoy both jobs, running two businesses can truly be a pleasure.

What combination of businesses would you most like to own or manage?

About the Author: Bahram Nasehi is a Vice President and partner at Dulles Glass and Mirror. He is instrumental in the developement and manufacturing of commercial and residential glass products including tempered glass, glass table tops and shower doors.