K♠️ Marginal gains or major overhaul: Choose the right approach for your business 

Most business leaders today have heard about the philosophy of marginal gains. The philosophy championed by David Brailsford as he turned the British cycling team from a good team to a world class, Olympic gold winning team at the 2012 Olympics. And he credits a lot of their success to their philosophy of marginal gains. Looking at everything and getting every little detail right, and getting every little detail improved and improved and improved.

Every 1 percent counts!

Now that is a very valid approach, but this tip is to say just hold back a little bit. I'm not saying I don't believe in marginal gains, I do. But you've got to be slightly careful because I would also suggest there's an opposite approach which is sometimes more appropriate.

Problem or challenge: 

While marginal gains can be effective, it's important to recognise that it may not always be the best approach. Sometimes, businesses may need to focus on more significant changes to address underlying issues.

Complexities: 

Determining the right approach can be complex. Every business is different, each with their own individual circumstances and unique needs and challenges. Every leader is different too, your personal leadership style may influence your preference for either approach. And finally the organisational culture of your company may favour incremental improvements or radical change.

Solution

So like much advice in business and many of my tips, you have to choose as a business leader, what's right for your business today? And I'm suggesting sometimes you might just need NOT to use the marginal gains approach.

The marginal gains approach can lead you into fixing lots of small things, none of which is fundamental. Maybe what your business needs today is for you to focus on one thing that's really important that's going to dramatically change the performance of your business.

So, is it right for your business to focus on marginal gains, lots of little small improvements? Or is it right for your business to focus on the ONE thing that’s important? That I’m afraid is where your judgement and skill is critical!

Taking the metaphor of the cycling team a little bit further. Don't forget that what David Brailsford had was a pretty good cycling team in the first place. So at that level, it was appropriate for him to focus on the marginal gains. All the little things they could put right.

If your business is already good, and you're looking for the marginal gains to take your business to a higher level still then this approach would be effective. But if if you're not already world class it may be that there are some fundamentals that need to be put right first.

Maybe you need to focus on fixing the big problem that's in front of you first. And then later, as you've got the business running well, you can focus on the marginal gains that are going to take you from good to great. 

To determine whether marginal gains or a major overhaul is the right approach for your business, consider the following:

1. Assess your current performance: Identify your business's strengths and weaknesses.

2. Identify critical areas: Determine which areas of your business have the greatest impact on overall performance.

3. Evaluate the need for change: Assess whether marginal improvements or more significant changes are required to address key issues.

4. Consider your resources: Evaluate your available resources (time, budget, talent) to determine the feasibility of different approaches.

Benefits:

By carefully considering your options and choosing the right approach, you can:

• Improve overall performance: Achieve significant improvements in your business's results.

• Optimise resource allocation: Focus your resources on the most impactful areas.

• Avoid wasted effort: Avoid spending time and money on minor improvements that don't yield significant results.

Why it works:

 The effectiveness of marginal gains or a major overhaul depends on your specific business situation. By carefully assessing your needs and choosing the approach that best aligns with your goals, you can achieve the desired results.

Measurement: 

To measure the effectiveness of your chosen approach, track key performance indicators (KPIs) that are relevant to your business goals. These may include:

• Financial metrics: Revenue, profit, and return on investment.

• Customer satisfaction: Customer satisfaction ratings and feedback.

• Employee satisfaction: Employee morale and productivity.

• Market share: Your share of your target market.

My story: 

I’ve always (well for a long time) been good at running business. Doing things right! In case that sounds arrogant, it’s not. It’s a statement of my career mistake.

Looking back, my career was a sequence of being in the wrong place at the wrong time. So please learn from that! Doing things right is not enough. Doing the right things is equally, and I would now argue even more important.

Selling solar panels when the government is funding them as fast as they can be installed was profitable for many businesses that didn’t do it right and very very profitable for those that did it right too.  

Meanwhile selling IT services as I was after the dot com crash was almost impossible. IT was difficult for any business to be profitable as everyone raced to the bottom to survive. Only the well funded, well run businesses like mine survived, albeit making very limited profits because we were in the wrong place at the wrong time.

Don't blindly follow the trend of marginal gains. Carefully evaluate your business's needs and choose the approach that best aligns with your goals. By making informed decisions and ensuring you are in the right place at the right time, you can achieve significant improvements in your business's performance.