In Business Be the Cause

Would you rather experience the result of actions or create the results? When it comes to business this is an important determinant of the level of success.

A First Principle

The first principle of operations science is causality, also known as cause and effect. In essence it says that any finite event must have an adequate cause. Basically, this is saying that nothing just happens. Although this principle of one of science it really is multi-discipline. Just as in science, social, political, and business events also must have an adequate cause. So what do you do with this knowledge?

Don’t be the Result

In the posting The Proactive Business versus the Reactive Business we looked at the importance of acting rather than reacting. If we are not active in causing things to happen as we want them to occur then our business is disproportionately impacted by outside actions. We effectively give up control. If we are proactive it helps us to be the cause of our business results. Using an example from the blog on proactive versus reactive, rather than waiting to see what our competitors do before we take actions we are more likely to get the results we want if we decide our actions and don’t necessarily make them based on competitors actions.

Be the Cause

Imagine you want to introduce a new product. Do you really need to wait for competitors to offer a similar product and see whether it performs well? No! When you do that your actions are really a result of your competitors’ actions in a sense. Oh the actions you take will have their own results for sure, but by waiting the results may well be much less desirable. This is one reason to be the cause in business. Even if you only get ready to act so that you can respond quickly you are still ahead of the curve as opposed to doing nothing and just waiting on competitors to act.

It’s More than an Outside Focus

This concept is not just related to your business’s interaction with the outside world. It also applies to your internal operations. If you’re concerned about having sufficient cash to pay bills, don’t just sit there waiting to see if you will. If you do then the cash you have available will largely be the result of activities outside of your control. However, if you take steps ahead of time to set appropriate price points, create adequate credit policies, set in motion effective collection practices, control inventory levels, minimize expenses, and so on, then these actions largely will be the cause of the cash available.

So how does your company operate? Do you just sit bake and react or do you take actions to cause the results you desire?

If you want to know more, contact AimCFO – Contact

As always, your comments are welcomed.

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