Take the night off - and read about thinking

A book that nudges you into thinking in a whole different way... in this case, about thinking itself ... is a great way to get those synapses firing.

Treat yourself to an evening (or two) with Thinking, Fast and Slow by Daniel Kahneman; the preceding link goes to a review I particularly liked, so I'm not going to attempt to improve on it here. A friend recommended Thinking, Fast and Slow via Facebook, saying it caused a "paradigm shift" in his own thinking. I am particularly taken by the concept of the systematic mistakes and non-logical thought processes to which most of us succumb. Just one example: Test subjects are more likely to opt for surgery if told that the “survival” rate is 90 percent, rather than that the mortality rate is 10 percent. Mind you, not all of us fall for this one – but as you read, I imagine you'll find yourself nodding ruefully at times!

Kahneman explores the strengths and (more important) the limitations of heuristics (experience-based techniques for problem solving) and reveals some of the limitations on our "System 1" or "nearly automatic" thinking. While it is imperative not to have to rethink everything from the ground up, it became apparent to me as I read that taking care not to over-assume and speed to resolution on problems might serve a purpose professionally and personally.

I'd enjoy hearing your take. Me? I'm questioning my snap assumptions... that is, when I remember to take the time to do so.

One question every person in charge should ask

There is not much of a silver lining to the Gulf oil spill, but people in charge – whether entrepreneurs, executives or longtime business owners – can garner valuable wisdom from one of the many mistakes that made the disaster more likely.

Potentially, busy with the severe recession, the financial sector bailout and the fight for a national health care plan, the Obama administration missed at least one ball it should have been keeping in the air: effective regulation of the oil industry in general and of deep-water drilling in particular.

The potent lesson for those of us in charge? There's a question we should ask ourselves often, and that we should grant ourselves the mental space and creative license to answer: What am I missing?

It's natural and tempting to get on a track and follow it, or to create a plan and execute it without taking the time and energy to step to the side and take stock - frequently. Are you missing opportunities? Not alert to certain dangers? Letting issues, people, money, or projects slide while you deal with everyday urgencies and tempests in a teapot?

It's true that people in charge have many of their best ideas while driving, showering or taking a vacation. Extend that freedom of mind into your everyday routine. Assign or put aside routine tasks to facilitate your own creative thinking. Read a business book on a new topic. Ask yourself if there's anything on your mind that you're not dealing with (it's often right there below the surface). Access your right brain.

What am I missing? I'm glad I asked myself. I'll ask again. And again.

Thinking short-term?

If you're like many US company executives or entrepreneurs in 2010, you bet you are. And for good reasons.

-Shareholders are demanding results after a tumultuous run
-Cash flow is... eh
-You're itching to hire, to grow revenues... in short, to do what companies do best

Even as you focus on the immediate, you're no doubt aware that you mustn't lose sight of the more distant horizon (the cross country drive vs. the drag race). How can you align the two?

-Don't accept today what you don't want to live with tomorrow. Cutting your prices, appealing to a less-desirable customer or client echelon, conducting down-and-dirty marketing and sales campaigns... these choices may allow you to meet short-term goals, but if they harm your firm's market profile or long-term prospects, think twice. In fact, think about Wall Street investment firms and how some of them look to the public today (thanks in some measure to basing bonuses and such on short-term results).
-Even when you're generating the quick buck or the immediate sales, have your five-year game plan not only in mind but also in writing. Where does your company need to be? What is the path from A to B to C? Post Great Recession, it may be time for a new marketing plan, perhaps even a new business plan. Talk with us.
-Get some help. Create an advisory board, talk with a well-reputed business growth consultant, watch what's going on in your industry and similar industries. Remember that 2013 will look as different from 2010 as did 2007. Conditions are changing as we speak.

We welcome your perspective, either as a comment to the blog or through a private email to our offices.