In the world of business, we often get caught up in the numbers game. We meticulously plan our financial decisions, always keeping an eye on the potential returns on our investments. This approach, however, can sometimes blind us to the less tangible factors that can significantly impact our business performance. Today, I want to explore one such factor – the environment, and how it can be your business’s hidden variable for success.
When we say environment, we’re not talking about the physical location of your business. No, we’re referring to the atmosphere, the culture, the workspace where your employees spend their days. The environment in which your team operates can have a profound effect on your business, and it’s often overlooked when allocating financial resources.
To illustrate this point, let’s take a detour into the world of sports, specifically marathons. Recently, the men’s marathon world record was broken by a Kenyan runner, Kevin Kiptum. Interestingly, five out of the six times the world record has been broken since 2011, it has been by Kenyans. Researchers initially attributed this dominance to genetics or altitude, but these theories have been disproven. The latest theory? The environment. Running is Kenya’s national sport, and the structured competition level brings out the best in their athletes.
So, what does this have to do with business? Much like the Kenyan runners, the environment in business can yield extraordinary outcomes. I learned this the hard way. In the early stages of my business, I made decisions based purely on potential revenue. One such decision was to skimp on office space, believing it wouldn’t contribute to additional revenue.
Fast forward ten years, and we found ourselves with a siloed culture. Teams worked independently, leading to a lack of cohesion and collaboration. It took someone pointing out the obvious – we needed to house everyone under the same roof – for me to realize the impact of the environment we had created. In hindsight, investing in a unified workspace would have been worth it, even without an immediate dollar return.
This experience taught me a valuable lesson – function follows form. The structure of your business environment influences its operation. It’s not always about dollars and cents. The environment in which you place your people can significantly impact their behaviors and, ultimately, the success of your business.
Consider a scenario where two team members, let’s call them Bill and Dave, need to work together but are separated due to the office layout. The disjointed workspace makes their collaboration challenging, leading to inefficiency. It might cost a substantial amount to remodel the office, but the improved collaboration could lead to far greater returns in the long run.
The takeaway here is to consider the environment when making business decisions. Don’t just focus on the black and white numbers. Consider how your environment shapes the behaviors of your team. It’s far more influential than you might think.
So, take a moment to examine your business and its environment. You might just unlock that hidden variable that propels your business to new heights. Remember, it’s not always about dollars and cents. Sometimes, the key to success lies in the environment you create.
Until next time, keep growing your business.
- Hugh Reardon