Seeing a situation through a single lens distorts your view and leads to bad decisions.

June 6, 2021, was the 77th anniversary of D-Day. A vital part of the Allies’ success was Operation Fortitude, which was the biggest deception operation of the war. It played on the German high command’s belief that General George S. Patton, Jr. would lead the main attack into France at Calais. 

Eisenhower wanted to blind the Germans to the real attack at Normandy, delay their reinforcements, and buy time to build up a huge allied force in France. 

The Germans saw what they expected to see — Patton’s massive army ready to pounce. Their fixation had the effect that Eisenhower wanted. They did not give up on their fear of a Patton-led attack at Calais until six weeks after the Normandy landings. By then, Patton was leading his tanks toward Paris.   

BlackBerry’s CEO Mike Lazaridis believed that keyboards were essential for hand-held devices. Despite data suggesting that touch screens were gaining popularity, Lazaridis clung stubbornly to his original design. When’s the last time you saw a BlackBerry?

Your blinders thicken when you see what you expect to see.

The single-colored lens is comforting in a world with so much noise. The problem is that you only see what you expect to see, so you are blind to information that gets filtered, and you dig in your heels when information challenges your point of view.

A trusted adviser acts as your kaleidoscope so that you can see the complexity and zero in on the most important data points. Who’s helping you see the tapestry and frame the most important scenes? 

I gave a presentation to the Milwaukee Rotary Club this week on Afghanistan. As many of you know, I spent four combat tours there: three in uniform and one as a civilian. 

Members of the club told me that they’d like to hear about some personal experiences, ways to understand the withdrawal decision, and what’s likely to happen next. I synthesized all that into three main points that apply beyond Afghanistan.

1. You don’t create new wins with old thinking. It seems safer to do what you’ve been doing, even if it’s not working, but there are opportunity costs, too. According to Nobel Prize recipient Daniel Kahneman, people tend to be risk-averse. hey fear losses more than they prize gains. They prefer to smell their own fumes rather than be hit with a blast of fresh air. Whose pumping in the fresh air for you?

2. To grow, you need vulnerability and security. Security without vulnerability leaves you buttoned up and unable to grow. You cannot grow unless you are willing to take off your mental and emotional body armor, and gain exposure to new ideas. Vulnerability without security means you are likely to become someone else’s dinner. Who are your trusted advisers?

3. You gain ground by building bridges, not by digging trenches.  Americans are tossing bombs at each other over politics, identity, and other matters. You can’t move forward while you are digging in. I found in Afghanistan that the only way to make progress was to get out of the trenches and build bridges with people who didn’t agree with me (some of whom were trying to kill me).  Who’s helping you build relationships that broaden your reach and impact?

You can view the presentation at the Rotary Club’s YouTube channel here.

P.S. VALUE-ADDING Leadership(TM) is a master program for leaders and entrepreneurs who want to inspire people to contribute their best and drive the business to new heights. The next program begins the week of May 24. More here.

Accelerating Success

FOCUSED is for leaders and entrepreneurs who want to create and sustain great teams that drive the business to new heights. Apply here.

SENIOR LEADER MENTORING. I have only 1 space available. Get the details here.

Build your StrategyThis program is perfect for small business and nonprofit leaders who want to create a winning game-plan without breaking the bank.

VALUE-ADDING Leadership (self-directed version) is perfect for young leaders people who want to lead as their best selves and inspire people to contribute their best. Check it out herehttps://strategic-leaders-academy.teachable.com/p/leading-well/

Scholarships

If you want to apply for or sponsor someone for a scholarship, contact me at [email protected]

F + P = GD. Facts + Perspective = Good Decisions.

Facts, alternative facts, and fake news is the 2000s version of the trope that there are three kinds of lies: lies, damned lies, and statistics. These problems complicate decision-making and lead to expensive mistakes. 

Six Americans, to date, have experienced blood clots after receiving the Johnson & Johnson COVID vaccine. One person has died. The CDC suspended the J&J vaccine until they can complete further testing to see if there’s a causal linkage to the blood clots. The EU did the same with the AstraZeneca vaccine and then re-authorized its use.

It’s heartbreaking to lose a loved one. The shock is worse when their death is unexpected and linked to something that was supposed to be good for them. The alarming reports have increased vaccine skepticism as people fear that the jabs are unsafe. They prefer the passive risk of catching the increasingly-less-fatal COVID to the active risk of injecting the vaccine.

66 million people have gotten the J&J jab. If a causal relationship is found, the probability of getting a blot clot from the shot is one in a million. That’s right, 1:1,000,000, which is far lower than the risk of harm from COIVD. Other one-in-a-million chances include being struck by lightning, casting the deciding vote in an election, and flipping a coin that lands on heads 20 times in a row.

President Biden announced on April 13th his decision to remove all American troops from Afghanistan by September 11, 2021. The date marks twenty years after the terrorist attacks on America planned by al Qaeda, which had a safe-haven in Afghanistan.

The Pentagon reportedly urged the President to stay the course. Some experts even argued for putting more forces into Afghanistan. Voices from the national security establishment, including former 4-star general and CIA director David Petraeus (whom I advised for three months in Afghanistan), decried the decision as short-sighted and likely to lead to al Qaeda returning to the landlocked country to plan terror attacks against the United States.

President Biden, however, was skeptical. During his speech, the President spoke of his trip in 2008 to the Kunar River valley. That trip was to my outpost, FOB Bostick. What then-Senator Biden saw was violence in our area had plummeted as more and more Afghans stopped fighting and decided to work together with us. He also saw the limits of what US forces could achieve: we could not provide legitimacy to the Afghan government. They needed to earn the support of the people. Unless they did so, we would be stuck.

Using his twenty-year perspective to weigh the arguments, Biden concluded that the risks of keeping US forces in Afghanistan far outweighed the benefits. The Afghan government has yet to earn enough legitimacy in the eyes of Afghans, and no length of continued US troop presence was going to change that. 

The difference between the poor decision to avoid getting vaccinated and the good decision to remove American troops from Afghanistan is perspective

Perspective provides context that is vital to sound decision-making. F + P = GD. Facts + Perspective = Good Decisions

Who is providing you with perspective so that you avoid drinking your own bathwater or following the bandwagon over a cliff?

P.S. Leading Well is for leaders and entrepreneurs who want to inspire people to contribute their best and drive the business to new heights. The next program begins in mid-May. More here.

“The clarity, buy-in, and accountability we’ve gained,” said Ray Omar, Capital Brands CEO, “has put us on track to reduce costs by over $1m and increase revenues by over $2m.”

Sophistry is a fast-track to losing business because you damage your reputation, brand, and trustworthiness.

Sophistry is the use of fallacious arguments with the intent to deceive. The word comes from the ancient Greek word sophistes, which means an expert or wise person. The Sophists were teachers and speakers whom Plato described as sham philosophers. The characterization stuck.

Today’s sophists are infomercial hustlers, charlatans, and Pyramid schemers who want you to believe something that’s not true. Use this one-size-fits-all digital marketing strategyfollow this checklist to become a creative thinkerinvest in this [silver bullet] scheme, etc.

Good people and organizations can fall into this trap, too. There’s a seductive lure to sugar-coat bad news so that you can ease the pain and anxiety of change or difficulties. It’s a short walk from good intentions toward manipulative “noble lies” and cringe-worthy sophistry. 

People see through the smokescreen right away. No one knows the people like the prince, said Machiavelli, and no one knows the prince like the people.

How do you feel when someone uses words designed to give you a false impression or manipulate your behavior? 

I’ve been a professional member of the National Speakers Association for a couple of years. I’ve gotten good value from the organization and its members, and I’ve given value in return. 

I received an email recently from them notifying me that they are “upgrading” my membership. Oh, that’s good newslet me check it out. The professional speaking business has been hit hard by the pandemic, so I was surprised that NSA would upgrade benefits. That’s pretty awesome.

It turns out that the only upgrade is in the membership dues. They are simply charging more and offering upsells. SlimyI feel like I need to shower

I’ve got no qualms whatsoever about NSA charging higher membership fees and upsells. I have huge qualms about the sophistry. I’m certainly not going to upgrade, and I might cancel altogether based on how they respond to my inquiry.

Lose trust: lose business. Build trust: build business. These are the simplest ratios you need to know, and you don’t need an MBA to understand them. 

I wonder if someone with an MBA approved that deceptive email?

Action steps:
1. Get an outside view so that you avoid drinking your own bathwater. Surround yourself with trusted people who tell you what you need to hear.

2. Speak plainly. Simplicity and clarity boost your credibility and improve the likelihood that what you say is what people hear. I’ve learned this lesson the hard way.

3. Empower people to take remedial action. Ritz-Carlton is famous for giving its front-line employees the ability to fix problems and make restitution on the spot. Oftentimes, you cannot control the problems you face, but you can control how you face them.

Like many Americans, I’m fascinated by Great Britain’s royal family. I lived in London for three years and loved visiting Buckingham Palace and Windsor Castle. I binge-watch The Crown. Queen Elizabeth II exemplifies The Operator, one of our four PROM Servant Leader Archetypes (TM). 

I’m dismayed by the ongoing tension with Harry and Meghan, which was on display in the Oprah interview. Bigotry and bullying are unacceptable, and I’m troubled by the stories the interview revealed. 

There’s only one celebrity in the royal family, so I’m also surprised that the young couple did not seem to get the memo. Some of their anxiety appears to come from a feeling of being underappreciated.

This last problem was entirely preventable.

The royal family seemed not to learn a vital lesson from the Princess Diana tragedy: when you treat people poorly, they are likely to return the favor. People who feel unvalued will vote with their feet out of your company or, in this case, out of the country. They won’t be ambassadors for your brand.

There were probably many good ways to give Harry and Meghan causes they could run with that boosted the royal family’s prestige and impact. Harry has been active with wounded veterans, and Meghan’s star power could have advanced that mission and other good ones without overshadowing the Queen.

This story provides some lessons on what to do with the talent on your team:

1. Put them in positions to use their PROM superpowers so that they succeed, and so does your business.

2. Use our weekly check-in questions to keep them focused on priorities, using their strengths, and getting the guidance and support they need. [Reply to me, and I’ll send you the checklist.]

3. Hold them accountable for doing the right things the right way. Every expectation should include what you want them to do, the outcomes you want to achieve, and the date you want the job done.  

4. Follow-up and be consistent about enforcing your standards. 

5. If you find that your team has toxic talent — highly capable people who undermine your company and their co-workers, then fire them. Toxic talent always costs more than the results they provide.

What action steps are you taking to let your subordinates know that you value their work and want to give them opportunities to contribute their best to your team’s success?

+++++

Last week I wrote that the UN-heroes of the pandemic award goes to big city public school teacher union officials. 

Amy Mizialko, head of the union in Milwaukee, said in a March 14th television interview, “We will not legitimize this notion of learning loss. Our students in Milwaukee Public Schools and students across the nation have learned skills this year that probably families and educators never anticipated that they would learn in terms of self-direction, organization, working with peers in a new way, so we’re not going to agree that a standardized test is somehow a measure of learning or somehow a measure of learning loss.”

I rest my case.

My UN-heroes of the pandemic award goes to big city public school teacher union officials.

Teachers can make a lifelong impact. Mrs. Brayman, Mr. Brayman, Mrs. Evanoff, Mrs. Schneider, Ms. Peterson brought out my best and helped me be who I am today.

Millions of kids, mostly from low-income neighborhoods, have missed the opportunity this past year. The teachers have done their best. Many public school teachers’ unions have kept them out of the schools and away from kids who need them most. The Milwaukee public schools are still not doing ANY in-person classes.

I’m fascinated by how “the science” works differently in private and public schools. My niece and nephew in San Diego have been in person for almost the entire year, and everyone’s been fine. According to a recent article in the Wall Street Journal, there’s no evidence of schools being superspreaders.

Data-denying teachers union officials, however, have fought tooth and nail to keep schools shuttered. The effects on kids who’ve missed a year of school will be long-lasting.

There are some good lessons here for small businesses. As the massive economic renewal gets underway, you’ll want to avoid un-heroes because they are subtraction-by-addition productivity and morale bandits.

1. Say no to selfish talent. A team or unit leader who cares only for their fiefdom will damage your team. I’m sure teachers union officials think they are protecting their dues-paying members, but they’ve forgotten about the common good. My mentor, Alan Weiss, pointed out that attorneys are officers of the court and advocates for their clients. The justice system breaks down when lawyers neglect one of these responsibilities. The same goes for your subordinate leaders.

2. Mind the customer. Had teachers union officials cared about kids and parents — the real customers of schools — they would have fought to get schools open safely instead of throwing up roadblocks. Grocery stores stayed open by putting common-sense measures in place to keep employees and customers safe. Single-issue advocates provide self-interested advice that’s good for their narrow interests but most likely damaging to your community.  

3. Beware of perverse incentives. What you measure creates workplace behaviors, so be careful to avoid metrics and awards that discourage teamwork. Too many teachers union officials felt accountable to dues-paying members and not to the community. Use one-on-one check-ins and meetings to have your senior leaders frame their work in terms of advancing company goals and objectives.

Say no to selfish talent, keep the customer in mind, and avoid perverse incentives so that you can make sure un-heroes don’t make their way onto your team.

Amy Mizialko, head of the union in Milwaukee, said in a March 14th television interview, “We will not legitimize this notion of learning loss. Our students in Milwaukee Public Schools and students across the nation have learned skills this year that probably families and educators never anticipated that they would learn in terms of self-direction, organization, working with peers in a new way, so we’re not going to agree that a standardized test is somehow a measure of learning or somehow a measure of learning loss.”

I rest my case.

Is it ok to lie to your employees if you think it’s for the greater good?

I’m probably an outlier on this issue, but I was distraught when I read in the New York Times and Wall Street Journal that Dr. Anthony Fauci announced that he lied about the pandemic. Twice. At least.

His intentions were noble. 

He wanted to prevent a run on N-95 masks so that medical professionals and caregivers had enough of them first. 

So, he said that wearing masks did not slow the pandemic.

He told us that epidemiological studies on herd immunity were wrong. 

Instead of sixty percent, Fauci said that up to eighty-five percent of Americans needed to be immune to stop the virus.

He admitted to raising the percentage to encourage more Americans to get the vaccine.

Dr. Fauci has performed admirable service for America during the pandemic and there are probably people who are alive today because of his advice.

But he decided to tell some Noble Lies, too.

Plato talked about the Noble Lie in The Republic. He used stories (myths) to explain the unexplainable.

What Fauci did was different. He misrepresented scientific information to manipulate Americans. 

He’s not alone.

The self-appointed permission to tell Noble Lies is why people do not trust leaders and experts.

The belief that you can lie to people for their own good is elitist and condescending. A team falls apart when people lose trust.

Here’s what leaders should do:

1. Tell the truth – no matter how good or bad it might be.

2. Let people know what action you want them to take.

3. Discuss why you are asking them to take action. “We need to do X so that Y and Z.”

Take these three steps, and you will gain respect and get the action you need from your team.

Professional credibility takes a long time to build and only an instant to destroy.

Fight, flight, or freeze.

Those responses to fear are hardwired into your amygdala.

Freeze is the most common for leaders, and it can be a silent killer for your business.

A simple framework to understand the fear and overcome it will help you seize opportunities in the 2021-renewal while others are standing still.

You’ve seen it happen. You don’t start the business; you don’t invest in success because of past experiences or self-limiting beliefs about the future. 

Uncertainty heightens the fear of making the wrong decision. 

You cover the paralysis by delaying or asking for more information and new options. 

I’ve done it. I’ve seen it affect an American President, general officers, CEOs, and nonprofit boards and executive directors.

I learned the hard way that you have to get to the root cause of fear to address it.

Imagine a quad chart. 

On the east-west axis, you have past and future.

The north-south axis is success and failure.

1. Fear of past failure occurs when you tried something before, and it did not work out. A business initiative failed, an innovation tanked, you got fired or chewed out. “I can’t do this because I failed last time.”

2. Fear of past success happens when you succeeded at something – perhaps against the odds, and you worry that you cannot pull it off again. “There’s no way I can get those results again, and falling short will diminish me.”

3. Fear of future failure is widespread. You worry that your business or initiative will fail, and you will suffer the consequences. “I want to take this step, but what happens if it doesn’t work?

4. Fear of future success is more subtle. You believe that you will not be up to the challenge of managing growth, “I’m ok leading 10 people, but I cannot handle 50.”

5. Fear of the present uncertainty. Imagine a box in the center of the quad chart. You fear that you might make the wrong decision. “I don’t know if a recovery is coming in 2021, so I will wait and see before making a decision.”

These “freeze” responses keep you standing still. 

When you are standing still, and others are moving forward, you are losing ground.

It’s like stuffing your money into a mattress. 

You don’t lose the money, but inflation lowers its value, and you are missing opportunities for growth. 

Once you understand the nature of the fear, you can take steps to address it.

1. Fear of past failure. Identify the problems that led to the failure and put measures in place to prevent them from recurring.

2. Fear of past success. Reframe your measures of success. Focus more on developing others or creating different business lines, for instance, than meeting past targets.

3. Fear of future failure. Put together two or three viable options for reaching your goals and compare them. Create an action plan for the best option. Once you see how to achieve your goal, getting there becomes much easier!

4. Fear of future success. Determine what capacities you need to excel at the next level and develop them. Find the right support to help you succeed and avoid expensive mistakes along the way.

5. Fear of the present uncertainty. Review your options (to include doing nothing) and assess the risks and opportunities. Pick the best option and go with it. Your decision will probably work out. At worst, it is unlikely to be fatal, and you can make adjustments along the way.

What is your top takeaway from this article? Leave a comment below or email me directly: [email protected]

P.S.  If you’d like to discuss your 2021 goals, use this link to schedule the time that works best for you.

We will discuss your goals and obstacles during the call, and then I’ll offer you two or three action steps that get you moving forward. No sales, no B.S.

Why Help the Restaurateur?

Why Help the Restaurateur?

Serving those who serve

Why am I passionate about helping the restauranteur?  After serving in the military for 23 years, why would I now choose to work with restaurateurs and quick-service franchisees?  The answer is quite simple: I want to continue to serve by serving those who serve!  Can you think back to some quick-service restaurant that broke the monotony of your day-to-day?  What fast-casual dining restaurant answers the age-old question of “what’s for dinner?”  Food remains integral to building relationships, our country’s economy, our culture, and our way of life. The restaurant industry is one of the most dynamic, cut-throat, and often unappreciated sectors in today’s marketplace. 

GUTS – Radical Courage

It is no easy road to be an entrepreneur entering such a demanding industry.  It takes real GUTSradical courage—to join such a space.  Food expenses are rising.  Operating costs, to include the rising cost of wages, are a challenge. The increasing price of leased real estate is a looming foe.  In addition to these costs, the complex nature of marketing, sales, and communication make running a restaurant no easy task. Never mind trying to infuse a level of sustainable growth.  

Key Trends

In the NRA’s 2019 State of the Industry Report, they highlighted five key trends that continue to be at the forefront of the challenge:

  1. A competitive business environment.
  2. Staffing as a top challenge.
  3. Pent-up [customer] demand remains elevated. 
  4. Technology incorporation continues.
  5. Food preferences continue their rapid evolution.

Past performance does not dictate future success

Unfortunately, these trends do not soften the statistics of the past two decades either.  As you often hear it said, past performance does not dictate future success, but hindsight makes it clear that it is a significant challenge to be a successful restaurateur in today’s environment.   The numbers are staggering, with no relief in sight. Research has estimated some 60% of restaurants don’t survive their first year; Anywhere from 70-85% of restaurants either change the owner’s hands or go out of business in the first five years according to a 2005 study.  And personnel turn-over within the restaurant space is commonly observed to be as high as 70% annually. There is much to be gained as a restaurateur. However, it takes something special to not only survive but grow. 

How can I serve you best?

I have spent the past six months transitioning from my career in the Army and thinking about this VERY blog.  My aspiration: how can I serve YOU best?  I have visited a countless number of quick-serve and fast-casual dining restaurants.   I have watched and spoken to the men and women who are doing it, day-in and day-out, and my hats off to you! 

Three action steps

Here are three small things that may serve you well in your endeavor to be the best in your business:  

  1. Take deliberate time to reflect on this year’s five trends, and rate your restaurant? How are you doing in those challenge areas?
  2. Rank order them. Which presents you with the most formidable challenge? Is it staffing? Are you meeting customer demands? Are you integrating the newest tech? Is it staying food-relevant? Rank-order them, one to five.
  3. Do ONE thing about the top three. You can’t fix everything, but you certainly can do one to three tangible tasks to make your business better today.

You can do IT!

Don’t know where to start? Please feel free to reach out. You can do IT. Whatever IT is.

How sustainable is your business or nonprofit? This chart will help

Is your business or nonprofit a zombie or a volcano?

Use this Simple Chart to find out and learn what to do about it.

Zombie or Volcano?

By the end of this article, you’ll be better positioned to answer three crucial strategic questions for your business or nonprofit:

  1. Is my organization sustainable?
  2. How can I realistically assess the situation and avoid confirmation bias?
  3. How can I frame my strategic options so that I make the best decisions?

Just about every small business owner and nonprofit leader I know is incredibly busy. You are so passionate that your work stops feeling like work and becomes a part of you. You love what you do and do what you love. But is there a downside?

As a matter of fact, there is. Leaders can get so caught up in their product, service, or cause that they become blind to the first strategic question: how sustainable is my business or nonprofit? Ignoring or avoiding this question can lead an organization to become a zombie (sleepwalking to failure) or a volcano (suffering catastrophic growth on the way to failure).

A zombie is an organization that is no longer increasing its revenue or expanding its impact. It is merely paying the bills and keeping the lights on until the money runs out. The problem, of course, is the drain of talent and resources entailed by clinging to the status quo. Zombies do not fail fast—they linger.

A volcano, on the other hand, is an organization that grows faster than it can manage. Often, leaders fail to recognize the problem until too late. They get distracted by the euphoria of success and drawn into the chaos that they fail to develop their leaders and systems to handle it. At some point, growth becomes unmanageable. A major crisis or scandal often breaks the organization.  

There are simple and common reasons for these problems.

Confirmation bias is one of them. This refers to the tendency to place excessive weight on data that conforms to our existing beliefs and to discount information that does not. Confirmation bias can help explain why nonprofits cling to causes that too few donors will support, and why businesses fixate on products and services too few customers want to buy.

It gets worse. Those with confirmation bias tend to dig-in their heels when confronted with disconfirming facts and information. Highly-selective data drives their decision-making. Like the sooth-sayers of old, people invested in the status quo may be at higher risk of searching the entrails for hidden messages that everything is fine.

The result: 50 percent of businesses are no longer around after five years and only 28 percent of nonprofits report any financial activity after ten years.

A disciplined look at the big picture may help leaders make better decisions.

This simple quad chart could be useful. The north-south axis depicts profitability: the + direction means revenues exceed expenses. The east-west axis is for impact. The + direction denotes the tangible impact on your cause or mission.  

Is Your Business or Nonprofit a Zombie or a Volcano?

Four strategic directions emerge from this quad chart. The upper right quadrant is the ☺ place. Solid revenues and clear impact give your organization a strong foundation for growth. The danger in this situation is growth beyond your ability to manage it – catastrophic growth.

To avoid that problem, you will need the right team in place and a sound strategy.

Within the upper left space is a situation in which revenues are ahead of expenses, but the actual impact of the product or service is unclear. This is a dangerous position because you may be tempted to hire more staff and commit more resources. If, after some time, you cannot clearly articulate your impact, then revenues are very likely to dwindle. This means layoffs and possible bankruptcy. One of my clients found himself in exactly this situation; saving and repositioning the business was painful but ultimately successful.

A sound strategy in this situation is to maintain your current scope and scale but fix how you measure and explain your impact of the mission or cause.

If that becomes impossible, then merge with another organization. The ideal time to do so is when you can bring substantial resources to bear. This gives you leverage and influence. Too many organizations make this decision too late and have little bargaining power.

The lower right is where many organizations turn into zombies. Your team is making an impact, you believe, but your revenues are insufficient. This may be the result of one or more problems. The way you are measuring and explaining impact, for instance, might not be convincing. Your strategy could be causing you to miss important shifts in the marketplace, or your business plan could be wasting time and resources on activities that are no longer valued.

Again, you have two options. First, try to fix what is impeding your progress. Get a comprehensive and thorough strategy review and organizational assessment to determine if the required changes are feasible. If yes, give yourself a decision-point for knowing when to move to the second strategy option: merge.

If you decide that your organization is unlikely to recover, your best option is to merge.

The lower left quadrant is the place – insufficient resources and impact. Your best option here is to harvest: shut down, learn from the experience, and begin again with something different. Failing fast successfully requires you to measure your revenues and impact from the very beginning and to set a decision-date to establish whether your business is viable.

This chart should be a part of every business or nonprofit strategy. It is a constant reminder to determine the compelling impact you are trying to make, measure it, and explain it clearly to your customers or donors. The aim is to create a virtuous cycle: compelling impact results in positive revenues and greater revenues lead to higher impact. When one or both of these elements is flatlining or declining, you need to diagnose the problem quickly and decide whether to improve your organization or close it down.