| |
|
Article Directory :: Business - General Articles
Most business people use the same level of skepticism about everything they consider. Some are always optimistic that things will work out. Some are always pessimistic. Most people are somewhere in the middle. When a problem selecting the right choice is difficult enough, you will probably find that being very skeptical is the right route. How can you learn to be skeptical if that is not your usual way of thinking?
Although legal concepts can often conjure up the unpleasant connotations of being sued, there is one idea that judges and lawyers use that will make you smile when you turn this principle to your advantage. This concept is one of shifting the burden of proof onto the proposed test. Some would call it "being from Missouri" while others refer to this as being a doubting Thomas.
The basic idea is simple. The proposed cost-reduction test does not get any benefit of the doubt. In fact, if some aspect of the test cannot be successfully argued as to why it will certainly work, you assume that that element will actually fail in the test.
For example, we know that harmful cost-reducing business models can cause you to lose more organizational muscle than fat, just as harmful diets do. So, you should assume the proposed cost reduction tests will cost you customers until proven otherwise. That way of thinking serves to shift the burden of proving that the cost reductions are good ones onto the proposed test. Those who proposed the test can serve as its defenders.
What elements should you be thinking about in this way? While no list can be complete enough to capture every potential area needing proof, here are some areas to consider as a starting point to help you. Please do be sure to add your own ideas. In each case, the test proposal has to make the case that the new cost-reduction-based business model can overcome these assumptions:
- Profitable customers will be lost
- Unprofitable customers will be added
- Costs squeezed out in one area will reappear elsewhere in large amounts due to mistakes
- Top performing employees will be lost
- Weaker performing employees will be attracted
- Quality and performance of your offerings will drop
- Legal liability will be increased
- Cash flow will be harmed
- Regulators will investigate
- Partners will be lost
- Lenders will be concerned and alienated
- Stock price will drop for public companies
What you should assume is that every test proposal could well have flaws in one or more of these dimensions, or in other dimensions that you have added.
Keep track of what you learn. You'll be able to use it to improve your tests.
Copyright 2008 Donald W. Mitchell, All Rights Reserved
Donald Mitchell is chairman of Mitchell and Company, a strategy and financial consulting firm in Weston, MA. He is coauthor of seven books including Adventures of an Optimist, The 2,000 Percent Solution, and The Ultimate Competitive Advantage. You can find free tips for accomplishing 20 times more by registering at: www.fastforward400.com
 EasyPublish™ this article - publishers click here
More articles by Donald Mitchell
|
Free Report!
Ten Essential Secrets Of Article Marketing ... Grab Your Free
Copy Now:
Need Content?
Regular Top Quality Content for your Blog, Ezine or Website ...
Delivered Direct,
For Free!
Click For Details
Arts & Entertainment
Automotive
Business - General
Computers & Technology
Finance & Investment
Food & Drink
Health & Fitness
Home & Family
Internet Marketing/Online Business
Legal
Pets & Animals
Politics & Government
Reference & Education
Religion & Faith
Self-Improvement/Motivation
Social
Sports & Recreation
Travel & Leisure
Writing & Speaking
|
More business articles: - What Can I Use Interlocking Floor Tiles For? (Mark Etinger)
Most places with patios and decks do sell for a higher market value than a home without - so for a quick and sturdy renovation consider interlocking floor tiles. If you need some basic ideas on how these specialized tiles can make your home look and feel a little better, I have just a few suggestions to throw your way! - Blankets - Retailers Carry Patchwork Heritage Collection to Help a Great Cause (Jay Leo)
With your order your will also receive the Blanket America booklet. The booklet contains 14 pages defining the purpose of the Blanket America project, the quilts fascinating history and the President's call to action. Also included is the Blanket America Awareness car magnet - 8 Ways to Build a Killer Credit Score (Suzy Vanstrusen)
This article focuses on eight ways on how you can build a killer credit score that will surely win your lender, landlord, employer and insurer's approval. - What Is Assistive Furniture And How Can It Make My Life Easier? (Mark Etinger)
There are many assistive furniture on the market including manual bed frames, electric frames, press relief surfaces, bed pads and rails. Manual lifts and patient slings are also available and even cushions and back support, hip chairs, Geri chairs, lifts, stools and mobile recliners! Which one is right for you? - What Are Some Basic Refurbished Office Furniture For A Home Office? (Mark Etinger)
Setting up a home office can be easy and cheap, only if you follow the right steps. First off you can BUY whatever you want. It's YOUR home office. So if you really want a big executive desk? Second, did you consider refurbished office furniture? Well... Read on! - Exciting Reasons to Buy New Homes in Sumter SC (Pam Bertrand)
There is never a better time to buy a new home in Sumter, South Carolina than right now! New construction is on the rise and many investors are purchasing these homes before they are even finished knowing full well that they will realize a profit when the market takes a turn upward. - Should I Buy Cubic Zirconia Rings When it Comes To Diamond Engagement Rings? (Mark Etinger)
You can own diamonds without being rich! Some of the lower carat weights are actually quite inexpensive and will look like a million bucks. Here's how you can get the deal of your life buying diamonds online. - Can You Really Be Debt Free Through Debt Consolidation? (Suzy Vanstrusen)
With the recent economic slump, more people struggle with debt repayment and are in need of help. Is debt consolidation the answer? Can you really count on it to be debt free and enjoy financial stability? - Networking Don'ts (Alice Osborn)
Effective networking takes some preparation so you come off looking like the professional you are. Be strong, be bold and try not to make these mistakes listed in this article.
We Automatically Distribute Articles
To Thousands Of Publishers And Web Sites:
Submit Article
All content is viewed and used by you at your own risk and we do not warrant the accuracy or reliability of any of the information. The views expressed are those of the individual contributing authors and not necessarily those of this web site, or its owner, Takanomi Limited.
|
|
