Posted by Dave Lorenzo - Business Coach

I  was at a conference a while back and I had the opportunity to interview one of my colleagues about a major business turnaround he had just completed. This gentleman had turned a business that was losing money into one of the most profitable divisions in his company.  He said something during the interview that resonated with me.  When I asked where he began to make changes, he said:

“I started with the little things.  I began holding people accountable for coming to work on time and completing progress reports up to company standard.  I asked people to set goals for themselves and I reviewed their weekly sales call sheets.  I didn’t nit-pick but I made sure that the fundamentals were sound and that people knew I was paying attention.”

When I heard this quote I thought back to my own turnaround experience.  When I was in the hotel industry and I was faced with a troubled property I would always clean up the “back of the house” first.  I would scrub and paint all the areas that the guests wouldn’t see.  I would upgrade the meals in the employee cafeteria and I would re-stripe the employee parking lot. 

After making these changes, I would hold a Town Hall Meeting with the entire hotel staff.  I would explain that we were going to improve every detail of our hotel guests’ experience and we were going to start from the inside out.  That’s why I made all the changes to the back of the house first. 

This is a variation of the Broken Window Theory.  The theory was first detailed in an article titled Broken Windows by James Q. Wilson and George L. Kelling, which appeared in the March 1982 edition of The Atlantic Monthly. The title comes from the following example:

“Consider a building with a few broken windows. If the windows are not repaired, the tendency is for vandals to break a few more windows. Eventually, they may even break into the building, and if it’s unoccupied, perhaps become squatters or light fires inside.

Or consider a sidewalk. Some litter accumulates. Soon, more litter accumulates. Eventually, people even start leaving bags of trash from take-out restaurants there or breaking into cars.”

In other words– the little things matter a great deal.

What are the Broken Windows in your business or your career?  Do you forget to return customers’ calls promptly?  Do you follow-up on all potential opportunities?  Perhaps you should look at your discipline and focus in your current role before seeking another job or starting a new business. 

If you’ve got some broken windows, fix them first - then renovate the rest of the house.

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Filed under: Personal Strategic Planning
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