Key points from this chapterBefore you start finding the solution to your problem, you must decide whether the problem or opportunity is real or imagined. All too often we overreact and spend time and energy on problems and opportunities that are illusions. In many newsrooms, you’ll find a big sign that says: “Nothing is as bad or as good as it’s first reported.” It teaches the reporters not to overreact.
Doesn’t that happen in corporations? There’s a rumor that a key person is quitting, and suddenly everyone’s mind is running through all the different possibilities and decisions that need to be made. What you need to be doing first is confirming or denying the rumor, instead of automatically jumping into a problem-solving process.
The same thing applies to opportunities. Is it a real opportunity or only an apparent opportunity?
Somebody calls to tell us a company in our industry is for sale. We tend to go immediately into a mental decision-making mode: Could we handle the acquisition? How would our employees react? What if a competitor bought it and pumped millions of dollars into it?
What we should be doing first is finding out if it really is for sale. If so, how much are they asking for it, and can it be bought on a leveraged buy-out or in exchange for stock? At this point, you’re seeing if you can locate a disqualifier: You continue to gather information unless you run across something that rules out the acquisition. It’s smart to gather this information well ahead of making a decision. You’re really investigating to see if a decision needs to be made—to see if it’s a real opportunity or just an apparent opportunity. If it’s only imagined, quit worrying. Relax and back off, because unless you overreact, nothing’s going to happen.
Be sure that you understand it properly. I was playing golf at my club once when one of the other players said, “Is anybody thinking of buying a new driver? I’ve got a new one so I’m giving this away.” The thought that he might give me his driver got me excited. Then I found out that his interpretation of “giving it away” really meant exchanging it for $200 of my money. I still bought the driver and was happy with it but it taught me a simple but important lesson: Verify an opportunity or a problem before you pursue it.
Key points from this chapter
Before you spend energy deciding what to do about a problem or an opportunity, verify that it is real.
Be sure that you fully understand the situation.