It Takes Courage To Win. |
Bad numbers do not lie. If something is wrong, the numbers will reveal it. They will not always reveal it in the way that might be best understood, but they will reveal something is wrong. Numbers do not lie. Numbers cannot think or respond to questions. Numbers can only reveal what has been done. The people who gather the numbers, now that is a different story. They will lie about how those numbers and how they were made. People will make wrong assumptions about how those bad numbers were made. They will make wrong assessments about what caused the numbers to become bad. People will actually lie to themselves about what kinds of things produced the wrong set of numbers their business produced. People will lie. Numbers don't lie, people do.
I cannot tell you how many times I have set foot in a retail operation and within minutes I have passed judgement about how that operation is performing, financially. Retail has a specific set of procedures that must be followed in order to produce consistently good numbers. It ain't rocket science. It is slippery grounds, however, but not rocket science. Retail can be an unruly beast if you allow it to dominate how you manage what you should or should not be managing. The beastly attitude a retail operation can harbor has been known to quietly kill good ideas, interesting opportunities, clean efforts of control and as a result...that beastly attitude will produce numbers that are not something an owner would prefer to parade around his contemporaries for fanfare. Retail can be very slippery territory for producing good numbers to reveal. Like I said, I have been inside many retail operations and in seeing how they operate I can closely predict if their numbers are good or bad. There are some very telling signs that reveal what is not being done correctly. Some of those signs of wrong doings will always produce negative results. Always. When I see them, I already know what the numbers are fighting to overcome. Likely, however, the leaders of those retail operations producing wrong numbers are continuing to lie to themselves about how their numbers are going wrong. The numbers are not doing the lying. The people are.
If your numbers are consistently producing unwanted results, your likely producing excuses for why they are doing what they are doing. You are also producing some wrong assumptions about why those numbers are not falling on the financials the way you want them to fall. In fact, sometimes the leaders will adjust how they process their internal accounting to justify where the numbers went wrong and as a result, they will actually place badly produced numbers to be revealed in a way that fits better to their desire. They lie. Leaders will lie about the sources of their bad numbers in an effort to cover what they did not do well. They will tend to disguise how they did what they did not do. It is much like adding gasoline to a small fire. I have watched great leaders make this simple mistake. It is astounding. I have done it myself. Changes need to be made. The numbers are wrong, they are wrongly portrayed and they are arranged to disguise why they are wrong. The numbers don't lie, people do.
When I enter a small retail operation I can usually tell if the leader is lying or not. Ego control is usually the first telling sign. If a leader has not been able to control their ego, that usually means they do not make good decisions with what their numbers reveal. They usually make decisions based upon what makes them look good. Numbers do not usually care if you look good or not. In fact, numbers do not know how to make you look good or not. Numbers only reveal what your operation has done. That's it. Numbers cannot think. They cannot go to the meetings with you and sit at the table to describe how you should have been treating them. They cannot produce a lie. They do not know how to do that stuff. Numbers do not have the ability to manage emotional decisions. Numbers cannot make decisions. Numbers do not drive what you do or how you decide what to do. They only reveal what you have done and what kinds of decisions you have made. Numbers show up after you make the decisions you felt you needed to make. When I enter a small retail operation, this is exactly what I am looking to find. Who knows the numbers, how are they gathered and in what ways do they regularly use those numbers to make the decisions in their business model? Big holes will surface here, immediately, if the model is struggling. I usually do not need to look any further. I already have my answer. The business model is not producing good numbers. Period. Lie all you want, this is where it begins.