How to say 'Yes' before saying 'No' regarding changes

In the business world, we have to be strategically able to face both opportunities and threats so that we can evaluate and draw a proper conclusion. With high competition in the market today, only those strong enough can stay in the market. Many have failed and disappeared from the scene. 

Past failures should become good lessons for management to avoid repeating the same mistake. However, the negative impact of this experience is that it could hinder some people from taking risks to avoid any possible failure. The tendency to say “No” to an incoming opportunity will be high in this situation, taking into account the following signs as a support for arriving at the conclusion:

Sluggish market: Most companies may not want to expand their business during an economic slowdown. There will be more cautious decisions to go on with new investment or expansion. However, it is also possible that with an in-depth market study, this may not always be the case. 

Too many uncertainties: It is difficult for many people to make a decision under uncertainty. However, the question is, “What is the proper level of certainty needed to make a good decision?” Under some circumstances, it is almost impossible to collect all information sufficiently. By that time it can be too late for the company when other players move faster.

 Time constraints: Many projects cannot get approved because the estimated time required is longer than the available time allowed. Under this obvious picture, management seems to deny any offered opportunity because of the limited resources they have.

 Complacency mind-set: Some people prefer staying within their comfort zone and don’t want to take on any new challenge. They don’t want to force any change before the time has come. This dangerous thinking may cause huge damage to the company when it finds out that it is too late to make things better. 

To avoid missing good opportunities arising from the fast-moving business environment, management needs to learn how to say “Yes” before saying “No” from a strategic point of view. 

In fact, a few tools are available for good decision-making before jumping to any conclusion. One effective way to evaluate the potential of a business opportunity is by doing a feasibility study.

This process can take a short or long time depending on the information on hand and the complexity of the project. The following are key pieces of information required in this kind of study:

Sound business assumptions: It is important for management to come up with well-developed assumptions, including information on such variables as marketing, product, service, revenue, expenses and investment.

Financial calculations: From the assumptions made from market research and surveys, the responsible person can run a financial model that will disclose the financial picture in terms of return on investment for decision-making. 

Action plan: In the study, an action plan should be defined to understand the whole picture. This would be set out clearly with a responsible person designation. The proper timeline has to be estimated to meet key milestones.

Review and approval: The final stage of the project study involves a review and then approval by authorised people, who can be the company’s board of directors or a committee set up for the purpose. An effective review process can result in the rejection of the proposed project. Thus, it is important for the project owner to prepare for any Q&A session.

Before saying “No” to the open opportunity, we can learn to start from a “Yes” attitude and then start the exploration process to assess it until a final conclusion can be reached. In the future, “Yes” may also imply the notion of “Let’s see how it works”. 

 

Yanyong Thammatucharee, head of international finance and operations at Central Marketing Group, can be reached at [email protected].