1. Define the problem = Start with a thorough information gathering process by speaking to all people involved. If your biggest customer complains that your product is starting to fail, for example, talk to the customer to learn exactly where the problem lies. Using the information you get, analyze your product to see what ways you can rectify the problem and improve your product
2. Explore the costs of failure = In connection with the problem, what exactly will failure mean? List down what this problem would really mean for your business, including financial costs, how this affects your relationship with customers as well as any partnerships. Using the example above, if your biggest customer pulls out their account, will your business survive? How will it affect your cash flow and revenues? Understanding the impact of a problem and knowing the worst case scenario can push you to act on it fast.
3. Explore the benefits of success = From viewing the negative, now see the flip side: what will happen if you successfully resolve the problem? Will your biggest customer keep their account with you? Will you be able to expand your product line if this issue is resolved? The author explains that
we be making in five
years?
– What new acquisitions
would protect us from
cyclical business
swings?