How do you convince a business owner that his practices are hurting the company?
Many times business owners don't want to change their way of thinking and refuse to change the way they approach things. This can result in building walls around them that prevent them from accepting change. How can you help a business owner see this?
In my experience practice owners know it is time to take corrective measures when the insurance payments stop coming in, or when they see a drop off in patient visits, or find themselves sitting in their offices instead of seeing patients.
It does not take a lot of discussion to convince them that something must done to change things once that realization occurs.
Well as an Owner of the Company one should involve in best management practices in the Interest of the Organization.It would be better to have 360 degrees Audit on quarterly basis so as to get a non biased feedback from each and every employee on how He/She would rate the organization in terms policies/practices undertaken.This would enhance the process of reaching down the line of organization to all levels of employees and know their thoughts.Based on an analysis of previous quarters measures can be taken and as said there is always an area of improvement but the doors are never closed for a Change.
Give them examples of new approaches that work, preferably with proven, documented results.
by illustrating the results of his practice versus best practices in his field of activities. I believe most business owners know something wrong in their practices but are not admitting it. Smart consultants and advisors are the ones who don't show this to the business owners but rather show the remedy in the form of 'improvement', 'enhancement', etc.
You've gotta come up with a solution to the problem and show how your solution will be better for the company. A company owner will always go with whatever makes the company more money or more happy customers. So I'd say get your numbers in order and prove your theory.
It is his business and his profit and loss..
You can only give your opinion and it is his decision. As an employee you can give a written observation and /or road map for improvement (without hurting his ego) to him.. and if he realizes and do the correction it is fine.. and if he does not.. you have done your job.
You have a choice/option to switch-over to another job.
By coming up with a constructive suggestion that can improve the maximization of the potential of the company, which is the ultimate goal - never by merely pointing out weaknesses.
in my experience you don't. The most difficult thing to do in sales is convince a prospect they are wrong. the most ingrained trait of human nature is not to be wrong. going back to the time humans began walking upright, to be right was survival and to be wrong could mean death. One wrong move could make the mistaken lunch for a saber tooth tiger!
thats why professional sales/marketing people NEVER try to convince a client they are wrong. Instead they sell the OPPORTUNITY. Then you allow the client to believe it was his idea.
So you'd never succeed telling a client he was hurting his chances by hiding behind a tree, instead you'd suggest "if you could just come from behind that hill he couldn't smell you and you surprise him and we'll all be eating tiger steak and wearing fur coats.
Appreciative Inquirery - find out several things that prove he is respected in some area - this establishes some trust - then move toward anything that isn't working from his point of view. For example, do you sometimes find that although you have given clear directions on a project that employee performace is not what you expected? This kind of trust - and respect does not happen over night- it may take up to a year to establish.
This is a difficult attitude to deal with but one I have come across many times. I think it boils down to how well you can show the owner how it can help his business in a way that is appealing to him. Many times we see how it will help the business but they are looking at it from a different view. If it is revenue that we see will grow, but the owner isn't as concerned with revenue but more in how easy it will be to implement then you have to show the owner the ease of implementation over revenue focus. First step if find out what the owners issues are with changing to this new way, and then start looking at how it improves his area first.
A business owner who won't change their way of thinking and refuses to change their approach is by definition a terrible coaching client.
Instead of wasting energy trying to convince uncoachable people that they need coaching, focus on attracting people who recognize that change will improve their situation. Then you can apply a lot of the answers on this thread to working effectively with those people.
Let us know how it goes, and feel free to contact me if you want to discuss how to attract people who are open to coaching...
I would start from building a set of indicators. It could be business results' indicators or process indicators. These have to be defined together with the business owner so you can learn his/her interests. After that, whatever changes you bring in to the company, it has to be seen / translated into that indicators.
If we can't measure, we can't control. And if we can't control, we can't improve.
P.S.This answer is excluding negotiation skills, personality of the business owner, etc.
Use numbers and negotiate. Getting the book, Getting to Yes by fisher to understand how to work with them on their business and not against them. It's all about how you position yourself and help them.
As Brian noted, deal only in facts and then only in facts that bear directly on the problem you think needs solving. Nothing ancillary. If you can quantify the benefit to making the change, that's even better. Most business owners will do something that makes them a lot more than it costs them. . .so long as they have confidence in the person making the recommendation and doing the underlying analysis.
Beyond that, though, trying to help someone who either doesn't want help of doesn't know that s/he needs it is like trying to put your arm around someone with a sunburn.
Great question, however I have found you cannot convince anyone of anything. All you can do is present the facts and paint a picture of what is reality.
One additional thing you can do is show them how their current view of reality is one of the causes of the current state of affairs. I use this as a qualifying method to determine if I can assist an owner. If they are not willing to humble themselves and admit that they are part of the problem then all the consultative and coaching skills in the world will fall. This is because they are not willing to change even in the face of disaster.
Anyone that has been doing consulting/coaching for any time at all understands that this is a formula of disaster. Humility is the first step in correcting course. - Dino
Start by only dealing in facts on paper, show suggestions that might have worked better and ask if a policy change is needed. Usually if this is done strictly from a pleasant and business first perspective it can be well received. Any sign of critical thinking is likely to result in backlash.
I have always been a person to communicate my concerns for the better of the organization. You should never be afraid to speak up, it is your future. Finding alternative methods that are clear and concise to assist the company is good start, then convince them to give it try.
If it has to do with an ethical issue, This is a tough position to be in. I personally would be up front. I am not suggesting you do this because there could be ramifications.
Best of success, Gil
by convincing him to think out of the box through showing many experience in other companies that made a great success through Decentralization & changing Management. Then Creating the concept of Key Performance Indicators that manage the main Majors on the Company & its reflection on growing business by Numbers & Analysis only...