Journey of a Serial Entrepreneur

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How to get from where you are to where you want to be

5 Steps on How to Make a Decision

“When you cannot make up your mind which of two evenly balanced courses of action you should take – choose the bolder.” William Joseph Slim

Over the course of this last week I have talked about the decision making process. This process can help us in making difficult decisions. The process forces us to take action and to move from one step to the next in a continuous flow. Standing still has to be avoided at all times. From a business perspective, not being able to make critical decisions or to keep delaying them, will eventually lose you any competitive advantage you may have had. The world unfortunately does not wait for us to find the right time or right opportunity to make a decision. Listed below is a methodology I use for decision making:

1. Objective Clarification: The first step when making a decision is to look at the larger picture. Decision making is not an isolated process of just meeting specific needs, it is one in which broader goals and aims have to be taken into consideration for the future. It is only after clarifying what we hope to gain or learn from the decision we take, do we move to the next step. To learn more on how to clarify objectives behind a decision please click here.

2. Data Collection: The second step involves getting all the facts and figures required to make a decision. This could include, research, surveys, feedbacks or any other form of data collection which would provide us with information to help make a decision. The truth is, it is not possible to have all the facts and figures specially in a time bound situation. Life is about making optimal choices based on, often incomplete information. One must not let lack of data hinder us from making decisions. To learn more about data collection please click here.

3. Listing Options: Once we have adequate data about decisions we have to make, the next step in the process is to develop a list of alternatives. The purpose of this list is to put down on paper different options available.There will always be several possible alternatives available when one has to make a decision.Making an endless list of possible alternatives is not wise, and frankly, will waste a lot of time. Be specific in what you want and develop your alternative list accordingly. To learn more about developing an option list please click here.

4. Evaluating Options: I use a simple model which helps rank options according to our objectives and weight-ages given to specific factors. This enables us to rank each option in an unbiased manner and helps to gauge how they compare against each other on a holistic level. This model is developed on the basis of the prior 3 steps discussed. To learn more about the model and how to use it for your decision making process please click here.

5. Making a Decision: After successfully completing the four steps outlined above, we reach a point where we should have enough information to make a decision. Most of the time, we will not have all the information required, life is all about making optimal choices based on incomplete information. We should not let this affect our decision making process. Once a decision has been made, one needs to take responsibility for it and ensure follow through. To learn more about the final step in the decision making process please click here.

If one were to look back at life, there are bound to be decisions which, in retrospect were not the correct one. The important thing to remember is not the fact that one made a wrong choice, but whether we learned from the mistake or not. We should not let past failures inhibit us from making similar decisions in the future. If one were to take such an approach,  very little progress forward would be made. As mentioned earlier, life is short, we need to have the courage of our decisions, confidence to trust our gut instincts, and keep moving forward. I wish you all the very best on all your life decisions in the future.

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Can you make a decision?

“In any moment of decision, the best thing you can do is the right thing, the next best thing is the wrong thing, and the worst thing you can do is nothing.” Theodore Roosevelt

After weighing all possible alternatives, a decision making point is reached. This stage in the decision making process is where many individuals face problems. Some of the reasons I come across quite regularly for this are; there is inadequate information, I have received mixed reviews from feedback which has further confused me, I want to put this decision off for a while to think about it more, I cannot make this decision alone and, what if I make the wrong decision? These are all valid reasons to put off making a decision. However, if this becomes a recurring pattern in life, then, very little progress would be made when a difficult problem arose. 

Once our homework is done, and we believe we have adequate information about the decision at hand, we have to take a leap of faith. Waiting for the perfect situation, the perfect business opportunity or the perfect partner will invariably hold you back. We have to be proactive and want to move forward, this not only increases confidence, it provides invaluable experience and feedback. It is in moments of decision that we find out who we really are, and what we are made of. Use these opportunities to showcase your skills and abilities rather than shying away from taking responsibility. 

Once a decision is made, the next most important aspect of this entire process is, follow through. We have to be a 100% committed to the decision we make, and take full responsibility for it. This is not a time for excuses or getting cold feet. We must prove to ourselves, as to those affected by the decision that we have what it takes to execute the decision. If one makes a habit of changing one’s minds after taking a decision, this reflects poorly on character and value systems. In business, such a person would be deemed unreliable, and lacking the confidence required to take responsibility. Hence, next time you are put in a position to make a decision, do your homework well ,and when ready, make the decision and follow through. As an added benefit, the feeling one experiences after making a correct decision is amazing, and should be the end goal every time!

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Ranking your Options

“Choice of aim is clearly a matter of clarification of values, especially on the choice between possible options.” W. Edwards Deming

 Once we have developed a list of alternatives, the next step in the decision making process is to rank them. The ranking process requires basic elements to keep it simple, yet effective. The first element required is developing a criterion list to assess all your possible alternatives against. Listed below, you see an example alternatives list I have created for the laptop example I mentioned yesterday. For this example I singled out what I felt were the most important factors. The same example can be adjusted for just about any decision. Whether you are assessing a new car, business idea, partner, employee or a potential investment opportunity. Develop a list of criterions against which you can assess all the available alternatives. It is important to rank all the alternatives against chosen criterions. 

The next element that is required is, assigning weight ages according to your preferences. I used a 10 point scale for this example, however, there are other ranking scales, and I have personally used a 100 point scale as well. This depends entirely on the complexity of the decision, and the number of criterions being used to assess each alternative. The next aspect is to assign specific scores to each option, based on the criterion. I have used a 5 point scale for the assessment in the example below, 5 meaning, very satisfied and vice versa. After you grade each criterion, multiply the scale score with the assigned weight-ages. Finally, add each options total score, and you have a decision based on resulting total scores for each alternative.

Laptop Rankings

A further complexity to the model above,  particularly when making business decisions, is to add a risk component. I left this component out of the above example to make it easier to understand. Adding a risk component can help you weigh the risk-reward ratio of each alternative. This has been very helpful to me when assessing different business opportunities. The model described above, brings together all the factors we have spoken about in the last couple of days. It is important to understand the logic behind each of the components, and the manner we arrived at this stage. Once we have a total score, we are ready to move to the last stage of the decision making process.

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Developing Alternatives

“The absence of alternatives clears the mind marvelously.” Henry Kissinger

Once we have adequate data about decisions we have to make, the next step in the process is to develop a list of alternatives. The purpose of this list is to put down on paper, the different options available. The purpose of this exercise is to write down all the options floating in one’s head and translate them into a tangible option. This helps put perspective on the decision at hand by giving an overview of the options available. Many individuals like to write down as many possible alternatives as possible at this time. I think this complicates the decision unnecessarily.

The point of adding structure to your decision making process is to streamline it and make it more efficient. When we don’t do this, decisions take longer because of the incessant processing going on in your head. This ends up not only confusing an individual, but also significantly prolongs the time it takes to reach a decision. Therefore, when you develop a list of possible alternatives, only jot down those you are seriously considering and which fit the larger objective behind the decision process. For example lets say you want to buy a new laptop. You have been to the stores, got all the brochures and now sit down to make a list. If your list contains 20 possible laptops you are interested in, the decision will take forever to make. I had to make this decision a couple of months ago. I needed a laptop which was aesthetically pleasing and highly portable. I took a look at a couple of alternatives, the choice came down to a Sony or an Apple, I then made  a decision and settled on the Apple.

I think many of us make the decision making process a lot more complicated than it actually needs to be. There will always be many possible alternatives available when one has to make a decision, like choosing a college, a car, a computer or a mobile phone. Making an endless list of possible alternatives is not wise, and frankly, will waste a lot of time. Be specific in what you want and develop your alternative list accordingly. If for some reason one cannot find enough alternatives or an alternative that fits your criteria, it is possible to delay making the decision. However one should not use this as an excuse to be complacent or avoid making a decision. Once we have our list of alternatives ready, we can move to the next step of the process. 

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Getting your facts right

“Trust your hunches…Hunches are usually based on facts filed away just below the conscious level.” Dr. Joyce Brothers

Carl Jung did the foundational research behind the very popular MBTi personality type test. One of the capabilities of the test is to assess the manner in which we process information and reach decisions. On one extreme of the scale, you find individuals who require all the facts and figures to help them make a logically correct choice. On the other hand of the scale, you have individuals who trust their intuition, and tend to make what may be perceived as more emotional decisions. I happen to be one who trusts intuition a lot more than depending on facts and figures. There have been times this decision making process has got me into trouble, however, the times that things have worked out in my favor outweigh them. What it comes down to is personality type, and our values and belief system. One needs to be comfortable with whichever path one chooses to take.

The truth is, it is not possible to have all the facts and figures specially in a time bound situation. Life is about making optimal choices based on the often incomplete information. One must not let lack of data hinder us from making decisions. If one finds oneself delaying making difficult decisions or finding ways to avoid making such decisions, we need to ask ourselves the cause of such behavior. Confronting this head on will help enable us to progress in life. Life is too short to run away from making decisions which need to be made. We need to have the courage and confidence to trust our instincts and if we make a mistake, to learn from it. A conscious decision needs to be made about actually living life rather than just spectating it from the sidelines.

When in doubt or with little information to base a decision, consult others who may help guide you. This helps get a different perspective on the matter and may make it easier to make a decision. I have spoken about mentors in great detail, and how they have consistently helped me in decision making relating to both my life and business. Sometimes it just takes that little bit of re-affirmation, and at others, it may require a radical point of view. Either way, if we do not ask others for feedback and advice, we are not allowing ourselves to grow as individuals. Once you have your facts, figures and gut feeling, it is time to move to the next step of the decision making process.

Related Articles:

– How do you process information?

– How do you make a decision?

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5 Strategy Based Games

“What do you want to achieve or avoid? The answers to this questions are objectives. How will you go about achieving your desired results? The answer to this you can call strategy.” William E Rothschild.

This week we have talked about ways to flex analytical thinking capabilities so as to become more adept at developing and executing strategic directives. One of the ways which has contributed substantially to my personal growth in strategic based thinking, has been its application in a variety of strategic games I have played. Most of these games have simple rules, and can be played by a broad spectrum of individuals ranging from children to adults. When we begin to scratch the surface of these rules, we notice more complexities. Strategy development follows similar lines. To develop and deploy an effective strategy is a challenging task. Listed below are five strategy based games through which I have learnt many valuable lessons.

1. Chess: This game teaches several fundamental concepts, such as preparation, patience and sacrifice, key proponents in development of strategic planning. Chess provides an ideal playing ground to practice, and hone skills needed in these particular segments. It teaches us to see patterns, which may lead to future positions, and how to take advantage of them. At the same time it forces us to continue looking at the bigger picture, to ensure that we are aware of all positions on the board, so as to take advantage of them. To read more about the parallels between chess and strategy please click here.

2. Bridge: Is a game which helps develop skills to work with others, communication, learning to trust instinct and, actual ‘table’ play. As a partnership based game, effective communication with your partner is critical so as to read and understand the partner’s hand. Developing and deploying strategic directives works in the same way. We have to learn to work together to formulate them, at the same time we have to communicate them effectively to the rest of the team, to ensure smooth deployment or play. To read more about parallels between bridge and strategy please click here.

3. Poker: Among the many things which can be learnt from this game are aggression, controlling emotions and attention to detail. Most of these qualities are also required to ensure successful deployment of any strategy. Without them, we see poor execution and unravelling of plans midway, due to the inability to master these factors. It is essential that we develop and be adept at understanding our own thresholds and abilities to find success. To read more about the parallels between poker and strategy please click here.

4. Monopoly: An all time favorite strategy based game, this gives players insights into negotiating, deal making and situational analysis. There are several strategies which players take to win at this game, unfortunately they are often short sighted. This is due primarily because we develop strategies based solely on the short term . These could be in the form of hitting quarterly targets or maintaining specific share price. Most of these strategies do not take into account long term implications of these decisions, which have the potential to be detrimental to the company’s future. To read more about parallels between monopoly and strategy please click here.

5. Risk: A game with an end goal of, world domination. It teaches players several principles relating to allocation of resources, partnerships and aggression. Most of these principles form the basis of successful strategies. The ability to fully utilize in-hand resources in the most efficient manner is a challenging task. Furthermore, to progress as an organization,  strategic alliances need to be formed to accelerate the rate of growth. These principles are covered in the game, in a simple yet effective manner. To learn more about parallels between risk and strategy please click here.

On the journey as an entrepreneur, learning has to be an ongoing factor. Using creative methods to exercise analytical and thinking capabilities helps to see situations from different angles. This equips us with the ability to make better decisions, be more productive and reach our goals faster. 

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Risk

“Move not unless you see an advantage; use not your troops unless there is something to be gained; fight not unless the position is critical. If it is to your advantage, make a forward move; if not, stay where you are.” Sun Tzu

Competing for world domination is what the game of Risk is all about. This is a military based game, where players put their respective armies against each other. The game provides each player with the ability to be involved in strategic maneuvering, brings in an element of luck with the dice and gives ample opportunities to form and break alliances. In a way, it simplifies all the complexities of war, into a simple game where the player with the greatest foresight and a little luck, usually emerges victorious. Unlike Monopoly, this game allows for more creativity and imagination due to the movements allowed on the board. Playing straightforward strategies leaves you exposed, and vulnerable to attacks. 

This interesting game has quite a few parallels to the world of business and strategy:

1. Allocation of Resources: Each player has a finite amount of resources allocated to them. The placement of these resources is a critical aspect of the game. One may choose to have loosely scattered armies all over the board, they may decide to fortify certain key positions with the bulk of their resources, or they may aim to use their resources collectively and be aggressive. Each strategy has its advantages and disadvantages, a similar predicament occurs in the real world when we develop strategies. The deployment of limited resources is critical to whether the overall strategy will be successful or not.

2. Partnerships: Conquering the whole world, even in a game, is an arduous task, one that can rarely be done alone. The game calls for players to partner together, to improve their chances of winning and become a more feared adversary. Without these partnerships one is usually outflanked or outnumbered, and an early exit in the the game is imminent. The same principles apply in the real world. In order to reach goals and objectives, partnerships are an essential component. Choosing partners carefully and correctly is vital to ensure the success of any campaign.

3. Aggression: In my experience of playing this game, the opponent who chooses to fortify a small portion of the board heavily, usually faces eventual defeat. Opponents who choose a defensive style of play, lack the creativity or willingness to go out of their comfort zones, fearing the unknown. Unfortunately such behavior is punished heavily in this game as well as in the real world. When pursuing goals and dreams, being aggressive is often vital to acheive them . Focusing efforts on offensive strategies instead of defensive ones will bring a greater share of victories, rather than defeats in my opinion. 

In the game of Risk there is an element of luck, due to the requirement of rolling a dice. Once the dice is rolled, nothing can be done to change what was rolled. What we do have control over, is how we react to what we may have rolled. In life we have the same choice. We cannot change the hand that we have been dealt. What we can change is how we choose to play it. Remember to keep your end goal in mind, and formulate short term tactics to reach it.

 

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Monopoly

“Monopoly is a game which calls for long term strategic planning in order to succeed. “ Anonymous

There were very few games as exciting as Monopoly when I was growing up. It was by far one of my favorite board games, I still enjoying playing it today. There was something about the game, which drew me to it, maybe it was the immense satisfaction I got from figuring out how to convince my opponent to make a deal, the thrill of watching my opponents land on my hotels or just plain winning. I do believe that playing this game from such a young age was, to an extent, instrumental in developing my passion for business and deal making. As I grew older I began to notice the parallels between the board game and business. 

Listed below are some prominent parallels:

1. Negotiation: Monopoly requires players to make deals for swapping properties or other concessions during the course of the game. Very rarely do players want to give up something which they know will put them at a disadvantage in the game. It all comes down to how convincingly you negotiate and structure deals, so that they fit into your plan and appear to be favorable to your opponents as well. Individuals act in similar ways in the real world, and an ability to close a deal comes down to your negotiation and persuasion skills. 

2. Situation Analysis: In the game of Monopoly, it is critical that you adjust strategy according to the number of opponents as well as the nature of their behaviour patterns. Going ahead blindly and acquiring every piece of property you land on without a set objective, will place you at a definitive disadvantage. When developing business strategy, the same concerns have to be taken into account. Not paying attention to these factors, creates exploitable vulnerabilities in your plan. 

3. Integrity: Sometimes individuals will say just about anything to close a deal. In Monopoly this could be, “I will let you off three times on my hotels”, “We can share profits on this property” or “I will never charge you on this square”. However, I have seen these promises broken many  a time and a friendly game turn sour. In a game revolving around dealmaking, one’s word is really all there is. If no one trusts you or your word does not carry weight, no one will want to make a deal with you. The same rule applies in all aspects of life as well. Keeping true to your word will give your team reason to believe in you, will give investors the confidence to invest in you and will allow you to sleep well at night. 

Looking ahead and adjusting strategy according to forecasts is essential in the game of Monopoly and the game of life. One has to learn to trust gut instincts, and be confident in how to move forward. Keeping your word and honoring deals is mandatory. Understand your opponents and learn what drives them. At the end of the game of Monopoly there can only be one winner, make sure you have the drive and ambition to be that person. 

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Poker

“The most common mistake in history is underestimating your opponent; it happens at the poker table all the time.” David Shoup

Poker is a game associated with luck and random chance by most people. The immense media attention has contributed to a large extent, to the explosion in the number of poker players during recent years. The rules of the game are fairly straightforward, any amateur can be taught the game in no time. Due to this low learning curve, this game has witnessed a massive influx of players who just want to “try” their luck at it , so to speak.  Admittedly, there is an element of luck to this game, as there is with most card games. However, this element of luck creates a deceptive illusion, and beginners finds themselves losing rapidly to the more seasoned players. The fact of the matter is,  understanding probability stakes and an innate skill for reading people’s faces provides stronger players, with a huge advantage in this game. 

There are a few parallels that can be drawn from the game of poker to strategy and business. Some key elements I drew from the game are:

1. Aggression: Calculated aggression in the game of poker, forces other players at the table to react to your style of playing. Done correctly, this enables stronger players to manipulate many situations to their advantage. In business, and specially strategic development, the same theory applies. If one remains passive in outlook and allows external factors to disrupt the game plan, progress will be slow. One has to be an instigator to bring change, and one needs to pursue goals aggressively to reach them. Sitting back and expecting things to happen is a flawed strategy.

2. Controlling Emotions: The players at a poker table who allow their emotions to override logic and rationale, are the first to lose their chips. There are very few games I have played, in which controlling emotions plays such a vital role. It has taught me a great deal about patience and keeping a level head even when things become terribly long. Developing such patience can help greatly in all aspects of life, and provide a distinct advantage over those who lose their cool too quickly.

3. Attention to Detail: The game of poker is about gathering as much information about other players as possible. This could be their betting patterns, gestures or even the way they talk. Poker, does to a large extent boil down to how well you can read your opponents. Players who are able to identify patterns earlier in the game, can win, regardless of what others may be holding in their hands. In business and strategic development the same rules apply. The inability to understand your competition and identify trends leaves your organization at a great disadvantage. 

Developing keen insights about your opponents, and understanding your own personal threshold limits can be extremely valuable assets. By the same token, knowing when to accept defeat and when to keep your calm is equally important. This game punishes those with large egos, and rewards those who are able to keep their emotions and egos in check. Life works in very similar ways, the sooner we get adept at understanding these intricacies, the sooner we can reach our goals.

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Bridge

“A winner listens to his partner’s point of view; A loser just waits until it’s his turn to express his own.” Anonymous

Bridge is a game that was played regularly by my grandparents and parents. As a result, I learned this game at a very young age. I still have many fond memories of sitting beside my grandparents while they played their weekly bridge game at our home. It was fascinating to see the dynamics between the four individuals who were playing. Being a team based game, I remember being told how critical it was to carefully select partners and develop relationships. Like any team based game there were arguments and disagreements over how certain hands were played, which actually added an exciting dynamic to the game. 

On the surface, bridge appears to be a simple game with set rules of how to play the 13 cards each individual is dealt. However, that is only the beginning. There are many intricacies and conventions which arise when you begin to talk about bidding tactics, counting cards, table play and being able to read your partners as well as the opponents. Some parallels I can draw from bridge in comparision to strategic thinking are:

1. Teamwork: Without teamwork bridge cannot be played optimally. It requires both partners to have established understanding of each other’s style of playing  as well as the  conventions they follow and play to. From a strategic point of view one can draw parallels to business teams, as it is easy to tell which teams work well together as compared to those who don’t. When a team is not looking at ways to improve communication and productivity together, they are missing out on massive potential. Therefore establishing team building skills through games like bridge can be extremely beneficial.

2. Communication: Bridge is all about communicating with your partner the strengths and weaknesses of your hand , and then go on to play the hand optimally. However, the bidding process is complicated and requires a deep understanding of bidding styles and conventions as well as interpretation of your partners bids. The team which is able to communicate most effectively is usually the one with a substantial advantage in the game. Strategically, the same conclusions can be reached regarding communication. If teams do not communicate effectively they will suffer as  a result. On the other hand effective team communication can develop into defining competitive advantages over peers.

3. Instincts: Trusting your gut becomes easier with time and experience. Initially there is doubt about one’s instincts even when it appears to be a logical sequence. In bridge one needs to accurately place  one’s opponents cards relative to bidding and past rounds. There needs to be confident dependence on one’s ability to trust one’s counting & retentive skills as well as instinct in the placement of cards. This develops ones ability to rely on one’s instinct with greater comfort. Trusting your instincts when developing and executing strategy is necessary. Without it, you lack the confidence and ability to communicate effectively with the rest of the team. 

Bridge is an enjoyable game which sharpens analytical and team building skills. Unfortunately it is not a mainstream game and therefore does not enjoy the popularity of other card games such as poker. Nonetheless, it is a game I recommend, so learn it and play it as recreational activity among your team.

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