Everyone loves a survivor – people, products, or services. However, “survivorship bias” may cause us to adopt processes, tactics, and structures based on incorrect interpretations of data which can ultimately lead to failures small and large. How do you guard against this bias?
Watch our blog this week as Wayne presents various examples of survivorship bias and presents you with four concrete tips for avoiding it in your business.
We look forward to hearing your thoughts and comments. Thank you.
Also, please get in touch with Charlotte at ckopp@familybusinessinstitute.com for more details about our Contractor Business Boot Camp program. New cohorts start in Feb. and Apr. 2020. Thank you!
Wayne-
Great topic, as always, but one additional factor that I highly recommend is to surround yourself with people who are not afraid to stand up to us as owners and hold us accountable when we stray outside the lines. Many employees are unwilling to call out an owner and are strictly “yes men/women” which is not healthy for any business. Every great business needs healthy debate and differing opinions, so that each and every idea is fully vetted prior to implementation.
I fully agree that the elements that made a business successful 20, 30 or 40 years ago do not necessarily apply today. Every business must evolve by keeping the philosophies and good traits that made them successful, but additionally they must also discard, abandon or amend the things that are not relevant today.
That’s a great observation, Danny, and you’re right: too many companies are populated by yes men/women lacking the courage to call things like they see them!