Solving problems with money?

The “easy” solution is to throw more money at the problem. But while that may fix the problem short-term, it is really only acting as a band-aid. The underlying problem is still there. You may have stopped the bleeding or helped to prevent the wound from getting infected, but you haven’t healed anything.

While it’s tempting to throw money at the problem, use that either as a temporary stopgap, knowing that you need to get a plan together and put it in place ASAP – OR – avoid trying to fix your problems with money altogether (especially if you’re a startup/don’t have expendable cash yet).

Processes vs outcomes

Don’t fall into the trap of only keeping track of your outcomes. It is important to note the difference between the work you put in leading up to the outcome and the outcome itself. What I mean by this is that no matter what you do to prepare for a certain event, there will always be luck involved which is out of your control. For example, you could know the probability that something will occur “X” percent of the time (like a poker hand) and be a relatively good predictor of that thing actually happening. But no matter how much information you have, you have no control over the amount of luck (in your favor or against you) which will occur.

Say you’re playing Texas Hold’em. You’re dealt pocket aces (two of the highest cards) to start the hand. Unless one of your opponents has the other two aces in the deck, you always are starting out with the higher probability of winning before any other cards are shown. But say you lose with that starting hand 3 times in a row. Would you vow to never play pocket aces again, even though statistically you are favored to win? No. That would be valuing the outcome over the process.

The processes you follow should be based on what gives you the best chance to achieve your goals. It may not always work in your favor, but if you are always putting yourself in position to succeed, more often than not, you will.

Measure your processes, not the outcomes. If the outcomes always seem to be going against you, test your assumptions about the processes (maybe you’re missing something). And be sure to not only dwell on the negative outcomes (it’s easier to remember something bad that has happened as opposed to the many good things that have occurred).

Finding root issues

Identify what the root of the issue is…is it a people issue, a process issue, or a tool issue? Does it boil down to having the wrong person on your team? Do you have the right people, but you haven’t trained them well enough or put enough processes in place to allow them to succeed? Or do you have the right people and processes, but they don’t have the tools to succeed?

Discuss potential solutions to your issues. At first, anything should be an option to solve your issue. After all options are on the table, then you can start eliminating those that are not as applicable. Be sure to always keep an open mind and don’t shut down opposing viewpoints.

Solve the key issue. Make sure that this is not a band-aid, but a long-term solution. You don’t want to “solve” something temporarily, only to have it crop back up again in a few months.