Sense | Business sense is not a talent, but the ability to pick up on discomfort

Sense

People with business sense do not necessarily see the future.

They simply pick up on the discomfort that ordinary people let slide a little earlier.

Sales are growing.
In meetings, it is said that there are no problems.
The team also appears to be moving forward on the surface.

Even so, something feels off.

The quality of orders is dropping.
Customer reactions are becoming muted.
Chat responses are becoming slower.
People are no longer speaking their true feelings in meetings.
Even though the numbers are being met, the people on the ground look defeated.

People who can pick up on these small discrepancies are called "sensible" by those around them.

But that is not a talent.
They are just looking at things differently.

People with sense do not make decisions based on intuition

In the business world, people are often said to "have sense."

They are quick to decide the direction of new businesses.
They are quick to notice changes in the market.
They are good at reading customer reactions.
They are quick to distinguish between effective and ineffective measures. They are quick to sense the atmosphere of a dangerous organization.

When you see such people, it looks like they have a special sense from the beginning.

But in reality, the more sense a person has, the less they rely solely on intuition to make decisions.

They observe.
They compare.
They doubt.
They break things down.
They compare things against past failures.

And,

they stop and look at things that ordinary people would just let slide, thinking "it'll probably be fine."

Business sense is not,
the ability to come up with flashy ideas.
It is not the ability to say clever things.
It is not the ability to guess the right answer by chance.

It is the ability to quickly pick up on discrepancies appearing within the company, the market, customers, numbers, and the organization.

The sense required by executives and managers is not just the ability to handle problems after they occur.
It is the ability to pick up on small discrepancies before they become problems.

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It is too late to notice after an abnormality appears

Many companies only notice problems after they have grown large.

They review sales methods after sales drop.
They notice organizational problems after employees resign.
They check customer satisfaction after cancellations increase.
They look at profit margins after cash flow becomes difficult.
They realize nothing has been decided after meetings keep increasing.

However, small feelings of discomfort always appear before that.

Sales are growing, but gross profit is not remaining.
New customers are increasing, but referrals are not.
Hiring is being done, but the organization is not becoming stronger.
Meetings are increasing, but decision-making is not becoming faster.
Documents are well-prepared, but no one has decided on the next action.

Problems appear to happen suddenly.
But in reality, there are almost always warning signs.

Whether or not you can pick up on those warning signs.
That is where the difference in business sense appears.

Discomfort appears in quite subtle ways

Discomfort does not necessarily appear as an easy-to-understand incident.

Rather, at first, it appears quite subtly.

For example, no one opposes anything in meetings.
At first glance, it looks like consensus has been reached.
But in reality, it might just be that no one is speaking their true feelings anymore.

For example, sales say, "Everything is going well."
At first glance, it looks like there are no problems.
But in reality, it might just be that the unit price per order is dropping and they are taking on projects under unreasonable conditions.

For example, complaints stop coming from the front lines.
At first glance, it looks like things have settled down.
But in reality, it might just be that they have given up, thinking nothing will change even if they speak up.

For example, reports become thicker.
At first glance, it looks like management is progressing.
But in reality, it might just be that important points are being blurred and documents that cannot be used for decision-making are increasing.

When a company starts to decline, there is no loud noise from the beginning.
Whether or not you can pick up on subtle changes.

That is where sense shows.

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To pick up on discomfort, look at three types of gaps

When picking up on discomfort, first look at these three things.

The first is the gap between words and reality

They say "everything is going well," but the order unit price is dropping. They say "there are no problems," but chat responses are becoming slower. They say "we have reached an agreement," but no one is taking the next step.

If you only look at the words, it seems like there are no problems. But when you compare them to the actual movements, there is a gap.

The second is the gap between numbers and the atmosphere on the ground

Sales are growing, but the team on the ground is exhausted. KPIs are being met, but customer response is lukewarm. The number of new hires is increasing, but the organization is not getting stronger. Inquiries are increasing, but the quality of orders is dropping.

If you only look at the numbers, it seems like things are moving forward. But when you compare them to the atmosphere on the ground, something is wrong.

The third is the gap between decisions and execution

It was decided in the meeting. But no one is moving.

The deadline is vague. The person in charge is vague. What to check next has not been decided either.

Even if you say "it has been decided" in this state, the company will not move forward. It only looks like it has been decided, but it has not been translated into execution.

The gap between words and reality. The gap between numbers and the atmosphere on the ground. The gap between decisions and execution.

Just by looking at these three things, it becomes much easier to pick up on the discomfort in a company.

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Do not let discomfort end as just a feeling

Simply feeling a sense of discomfort does not equate to having sense.

"Something feels off."
"I have a feeling this might be dangerous."
"I get the feeling the atmosphere is bad."

If you stop there, it remains just an impression.
What is important is to transform that discomfort into a structure.

Is this a numbers issue?
Is it a customer issue?
Is it an organizational issue?
Is it a product design issue?
Is it a sales issue?
Is it a delay in management decision-making?
Is the premise itself wrong?

Only when you break down the discomfort can it be used for decision-making.

For example, if sales are growing but profits are not remaining, it might not just be a matter of sales effort.

Perhaps the pricing structure is wrong.
Perhaps the costs are too high.
Perhaps the man-hours are not visible.
Perhaps the contract terms are poor.
Perhaps the customer segment being acquired is wrong.

For example, if meetings are increasing but nothing is moving forward, it might not be a matter of the participants' motivation.

Who decides?
What is the meeting supposed to decide?
Who acts after the decision is made?
What should be different by the next time?

It might just be that those points are ambiguous.

For example, if you hire talented people but the organization does not improve, it might not be a personnel issue.

Perhaps the roles are ambiguous.
Perhaps responsibility has not been handed over.
Perhaps there is no authority.
Perhaps expectations are not aligned.
Perhaps the evaluation criteria are blurred.

People with business sense do not let discomfort end as just a feeling.

Pick up on discomfort.
Break it down.
Transform it into a structure.
Use it for the next decision.

Through this repetition, sense is polished.

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Company problems are difficult to see in isolation

Company problems are difficult to see in isolation.

If you look only at sales, things look fine.
If you look only at meetings, it looks like discussions are happening.
If you look only at hiring, it looks like progress is being made.
If you look only at documents, it looks like things are being managed.

However, when you line them up, you can sometimes see that they are slightly misaligned.

Sales are growing, yet profits are not remaining.
Meetings are increasing, yet nothing is being decided.
The number of people is increasing, yet responsibilities are becoming ambiguous.
Documents are increasing, yet decisions are not becoming faster.

Each one seems small.
But when you line them up, they are starting to collapse in the same direction.

I believe that business sense is not just a feeling about this misalignment, but the ability to re-examine it by asking, 'What is this company starting to do wrong right now?'

It is not that you lack sense, but that you are looking at too little.

There are people who think, 'I have no sense.'

But in many cases, that is not a problem of talent.
It is just that they are looking at too little.

You cannot feel discomfort about things you do not know.
If you have no basis for comparison, you cannot notice abnormalities.
If you do not know the patterns of failure, you cannot pick up on the warning signs.
If you do not know how numbers can distort, you will be deceived by superficial growth.
If you do not know the atmosphere before customers leave, you will not notice until cancellations occur.
If you do not know the signs before an organization breaks down, you will not notice until people start resigning.

People with sense do not have a special feeling.
They have many points of comparison in their heads.

They have seen similar companies.
They have seen similar failures.
They have seen similar spinning-their-wheels meetings.
They have seen similar organizational collapses.
They have seen similar distortions in numbers.
They have seen similar customer churn.

Therefore, when they see the events in front of them, they can cross-reference them with past patterns.

In other words, sense is not a talent, but an ability to detect discomfort born from accumulated points of comparison.

So, how do you create those points of comparison?

It is nothing more than the accumulation of knowledge and experience.

Read books.
Look at other companies.
Look at case studies of failure.
Look at the numbers.
Look at customer reactions.
Look at how the front lines are breaking down.

By doing so, you increase your own judgment criteria for:
'This is dangerous'
'This will grow'
'This will not last'

No matter how much you think while those materials are scarce, your sense will not work.

Sense does not work on things you do not know.

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Business sense is not the ability to predict the future

The term "business sense" is somewhat vague.
That is precisely why it is easily dismissed as a matter of talent or intuition.

However, I believe the sense required in the field of management and business is something much more practical.

It is not the ability to predict the future.
It is not the ability to come up with the right answer on the first try.
It is not the ability to come up with ideas that no one else has thought of.

It is the ability to spot discrepancies before it is too late.

Noticing changes in the quality of orders before sales drop.
Noticing resignation in the field before employees start leaving.
Noticing a lack of customer response before cancellations increase.
Noticing distortions in profit margins and cash flow before funds become tight.
Noticing ambiguity in meetings and responsibilities before the organization breaks down.

This is what I think business sense is.

People with sense are not predicting the future.
They are simply spotting small discrepancies that are already present earlier than others.

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Standards you can use tomorrow

What you should look at are not flashy anomalies.
Look at small discrepancies.

Things are going well, yet for some reason, the team is tired.
Things are decided in meetings, yet for some reason, they are not moving forward.
Things are selling, yet for some reason, there is no profit left.
Customers are increasing, yet for some reason, referrals are not increasing.
You are hiring, yet for some reason, the organization is not getting stronger.
Documents are increasing, yet for some reason, decision-making is not getting faster.
People are increasing, yet for some reason, responsibilities are becoming ambiguous.

Do not let these feelings of discomfort slide.
And when you feel that discomfort, look at things in the following order.

First, is there a discrepancy between words and reality?

Next, is there a discrepancy between the numbers and the atmosphere in the field?

And finally, is there a discrepancy between what was decided and what is actually happening?

After looking at these three things, consider where the discrepancy is coming from.

Is it the numbers?
Is it the customers?
Is it the organization?
Is it the product?
Is it the meetings?
Is it the responsibility?

Pick up on discrepancies, turn them into structures, and use them for decision-making.
From there, business sense is polished.

Why does an organization break down even after hiring excellent people?
I wrote about those symptoms in a previous article here.

"15 Symptoms of an Organization Breaking Down Despite Hiring Excellent People"

Business sense is not something reserved only for special people.

If you change what you are looking at, you can polish it little by little.

Next time, I will write about "knowledge," which serves as the material for sense.

Sense cannot function on things you do not know.

If this theme resonated with you even a little, I would be happy if you could like or follow.

In future installments, I will continue to break down business sense not as a talent, but as a set of criteria that can be polished through practical work.