Every company has blindspots that can be fatal for the future of their business. In this presentation Bill identifies 14 such blindspots he has commonly sees in the businesses he works with. Learn what these blindspots are so that your company can avoid them.

1. William W. Bayer
Lighthouse Growth Resources
Copyright 2009-2013 William W Bayer
www.billbayer.net

2. Why do we have illusions ?
 Tendency to create our own “Incorrect” reality
 Why?
 Avoid problems and pain
 Avoid responsibility
 Avoid conflict
 Scared of changes in responsibility
 Reluctance to accept new data
Copyright 2009-2013 William W Bayer
www.billbayer.net

3. The Factual Results Illusion:
“We know that we are succeeding-look at
these results!”
 Factual results or tribal knowledge?
 Do you objectively measure results?
 Do you have weekly or monthly key indicator
reporting?
 Do you know people are working on the right thing?
 Are you verifying priorities – every day with everyone?
Copyright 2009-2013 William W Bayer
www.billbayer.net

4. The Bank-Partner Illusion:
“Our bank is like our partner”
 Is your bank still a bank?
 What are the terms of your LOC?
 Have your financials deteriorated?
 Has your bank changed owners?
 Have you tested your bank lately?
 Are you friendly with your bank officer?
Copyright 2009-2013 William W Bayer
www.billbayer.net

5. Ease of Change Illusion:
“Change is easy; otherwise it isn’t worth it.”
 Don’t over-estimate your organization’s capacity to
change
 Avoid being imprisoned by your own outdated vision of
your company and your industry
 True change affects people
 If it is easy, it isn’t change
Copyright 2009-2013 William W Bayer
www.billbayer.net

6. The Same Page Illusion:
“Everyone knows what’s important”
 Set clear priorities
 Do a little less a little better
 Establish focus on three priorities
 Realize: lower level employees have
limited range for focus
 Verify priorities frequently
Copyright 2009-2013 William W Bayer
www.billbayer.net

7. The Irreplaceable Loyalty Illusion:
“She may not be an effective employee, but
she’s loyal.”
 The corporate baloney
 The Sales Prevention Department
 Loyal to you, but destroying the business
and the team
 Enforcing policy instead of what is right
Copyright 2009-2013 William W Bayer
www.billbayer.net

8. The Prima Donna Illusion:
“He’s a pain to work with, but he’s our best
employee. We can’t afford to lose him.”
 Great top-line value – But at what cost?
 The impact of special rules for one
 Being held hostage by employees
 “It’s my account” (not the Company’s)
 We’ll lose the customer if …
Copyright 2009-2013 William W Bayer
www.billbayer.net

9. Large Customer Loyalty Illusion:
“We must cater to the needs of our largest
customer.”
 Validate profitability – Is margin intact?
 What are the real costs of providing
exceptional service?
 Consider opportunity cost
 Analyze for possible structural degradation
of your fundamental business as result of
catering to a large low margin customer
Copyright 2009-2013 William W Bayer
www.billbayer.net

10. The Cost Saving Illusion:
“Sometimes saving money
costs a little”
 It’s spending dollars to save nickels
 Match the solution to the size of the problem
 Avoid fire drills
 Don’t consume resources on well promoted trivia
 Reign in the anal-retentive
 Value = Benefit > Cost X 3
Copyright 2009-2013 William W Bayer
www.billbayer.net

11. The Busy-ness Illusion:
“We’re all busy, therefore we are be
productive”
 Activity = Cost, not value, & not profit
 Measure results, not profitability
 Working on the wrong things does not create value.
 Reward productivity, not busy-ness
 Valuable activities create value for customers
Copyright 2009-2013 William W Bayer
www.billbayer.net

12. The Comparison Illusion –
“We’re better than Company X”
 Compared to industry leader or cellar dweller?
 Is your industry healthy?
 Has the structure of your industry changed?
 Are your competitors profitable?
Copyright 2009-2013 William W Bayer
www.billbayer.net

13. The Good People Success Illusion:
“Good people can succeed in any job”
 People succeed (and enjoy) jobs that match their
strengths
 Moving good people to a job that is a bad fit will not
work for long
 Success = Talent + Passion
Copyright 2009-2013 William W Bayer
www.billbayer.net

14. The No-Communication Illusion:
“They don’t need to know that”
 In the absence of information, people fill in their own
blanks
 Corollary – They always fill them in the worst possible
way.
 Not sharing information de-values key employees and
long term employees
 Always communicate changes carefully
Copyright 2009-2013 William W Bayer
www.billbayer.net

15. The No-Incentive Illusion:
“Our employees don’t need incentives-
at least they have jobs!”
 Well constructed incentives are valuable – even in a
weak economy.
 Link incentives specifically to measurable and relevant
individual deliverables
 Global incentives – profit sharing and year end bonuses
are a waste
Copyright 2009-2013 William W Bayer
www.billbayer.net

16. The Organic Teamwork Illusion:
“Give people a chance and they will
work together well”
 Teamwork never happens by chance
 Teamwork requires leadership
 Teamwork requires pro-active action
 Employees become more self-oriented all the time –
making teamwork harder to achieve
Copyright 2009-2013 William W Bayer
www.billbayer.net