The primary obstacle we must overcome in competitive situations that may drive us to make incorrect decisions is emotion, the feelings that we predict will be felt as a result of the decision and the lack of certainty associated when making these types of decisions. The emotions I’m referring to are not those associated with ethics or the value of possible results, those should be central in the decision making process. These possible defective decisions are based in fear, fear of the unknown, of failing, and even of success. A problem that many individuals and organizations encounter is becoming complacent; failing to evolve and improve their competitive strategies once they reach a goal, whether it is as small as earning a degree or as large as becoming the leader of an industry. This complacency is based in these fears.
Being afraid of the unknown is nothing that can’t be overcame by a simple logical anecdote, “If something is unknown then how can you be afraid it?” There is no need for the fear of something you have no control over, market variances no one has control over, such as fuel prices. But this fear can be nullified by doing your due diligence and budgeting for possible fluctuations. The unknown can also include the unpredictable actions of your competitors, strategic moves that operate out of your planning and attack your competitive advantages. Responding to actions such as these requires fundamental planning actions on your part, doing your homework and budgeting for the unknown. While, of the fears I am describing this is the one we have the least control over, that does not mean there is nothing we can do about it. Once again, stressing the primary aspects of my competitive philosophy, preparation is the primary key to setting goals and objectives and developing competitive advantages, along with eliminating variance.
“I would have failed anyway,” is the anthem of unconfident inaction and is born in what I find to be the most common of these fears, the fear of failure. Many people are so scared trying and failing they do not even try to begin a course of action. Failure is frustrating, disheartening, and often seen as a sign and result of weakness. The problem with this is they do not realize the value of failure, the knowledge gained from putting yourself on the line and not reaching the goals you set out to achieve. Learning from mistakes, so that you both do not repeat them and then use that situation as an analog that can be applied to future situations is a trait that should be valued much higher than that of a flawless record. In other words this is evolution verses complacency. A large difference exists between failing incorrectly, not learning from that failure, and giving up and learning from your failure and using that new knowledge to create value. The fundamental involved here is confidence, the belief in your own ability to make the correct decisions and deal with their consequences. By having confidence you put yourself in a greater position to succeed and begin to eliminate the fear of not reaching your goals.
The final fear associated with the outcome of potential decisions is the fear of actually succeeding; reaching your goals and not knowing what to do once you get there. This is a common problem for even those who have confidence in their decision making abilities and, once again, leads to complacency and lack of evolution. By being afraid of what lies beyond your goals you can sabotage your ability to not only reach your current goals but also respond to the strategic actions of your competitors. The unknown plays a large role in the foundation of this fear, but by performing the proper due diligence you can examine what is on the other side of your goals and begin to plan your next strategic actions long before you reach them, reducing the stress involved as your success increases. Primarily, the objective of this action is eliminating the question of what to do next.
A current example I see of fear and complacency tearing an organization to near failure is Blockbuster Video, an organization that has spent more than the last year downsizing to minimize losses and trying to stay afloat. Granted the economy over the last few years hasn’t helped any entertainment based organizations, but their current woes began over a decade ago after they became the largest movie rental outfit in the industry. Once Blockbuster had reached its goal of being the industry leader they became complacent with their position and began to stop evolving, an action normally based in both the fear of failure and arrogance. A company that large, employing and owning a large number of assets, will stick to their competitive advantages. However, by holding onto what they do well so tightly they lose sight of what may be on the horizon. On Blockbuster’s horizon was a startup that was the first mover into the national web-based mail order section of the movie rental industry.
Not only can we be held back by what we don’t know, but potentially also by that which we know the best. By doing the proper preparation and having confidence in our own decision making abilities we take the first step to eliminating the fears that threaten to distract from and defeat the goals we set out to complete. Defeating these fears is the foundation to not only creating value but also evolving our resources up the competitive chain into the advantages that result in true success.
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