Why | People who grow don't stop at the facts that occurred

Why?

Last time, I wrote about the sense of discomfort in the workplace.

Click here for the previous article

When a company starts to decline, it doesn't start with a big problem.

Chat replies become slower.
People stop speaking their minds in meetings.
The phrase "I'm fine" is used more often.
Even though there are more documents, decision-making doesn't get faster.
Even though the numbers are being met, the expressions on the team's faces become heavier.

Whether or not you can pick up on these small anomalies.
That is where the difference in business sense appears.

However, just picking up on the discomfort is not enough.

"Something feels off"
"I feel like the team is tired"
"I feel like there are more meetings"
"I feel like customer reactions are becoming weaker"

If you stop here, it's just an impression.

People who grow don't stop at the facts that occurred.
They always think about why it happened.

Just listing facts won't move a company

Within a company, facts are lined up every single day.

Sales targets were not met.
The average order value dropped.
Cancellations increased.
The number of sales meetings was insufficient.
Recruitment did not progress.
Meetings dragged on.
Projects were delayed.
Complaints emerged from the team.

Of course, looking at the facts is important.

If you don't look at the facts, you won't understand the current situation.
If you don't look at the numbers, you won't see the discrepancies.
If you don't listen to the voices on the ground, you won't grasp the atmosphere.

But just listing the facts won't move the company forward.

Sales targets were not met.
Cancellations have increased.
Recruitment is delayed.
Meetings are increasing.
The team is tired.

If you stop here, it's just a report.

Reports increase.
Documents increase.
Meetings increase.

However, the countermeasures do not change.
This is because they are not looking at the structure behind the facts.

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Skipping the "why" leads to shallow countermeasures

When a problem occurs, many companies immediately jump to countermeasures.

Sales are insufficient.
Therefore, let's increase sales volume.

Cancellations have increased.
Therefore, let's strengthen follow-ups.

Recruitment is not progressing.
Therefore, let's increase job media outlets.

Meetings are long.
Therefore, let's issue agendas in advance.

The field is exhausted.
Therefore, let's hire more people.

At first glance, it looks like they are moving forward proactively.
However, countermeasures that skip the "why" tend to be shallow.

Is the reason sales are insufficient...

A problem with sales volume?
A problem with the quality of sales meetings?
Is the target off?
Is the pricing not right?
Is the customer's problem weak to begin with?

Is the reason cancellations have increased...

A lack of follow-up?
A misalignment of expectations?
Insufficient explanation at the time of introduction?
Is the product's value not being communicated?
Is it different from what the customer really wanted?

Is the reason recruitment is not progressing...

A problem with the media?
Is the appeal weak?
Is the company's appeal not being communicated?
Are the conditions not matching?
Is the ideal candidate profile vague to begin with?

Is the reason meetings are long...

A problem with the agenda?
Is there no one to make decisions?
Are the points of discussion not organized?
Is responsibility ambiguous?
Is the execution after the decision not designed?

If you take action without looking at the cause, you will only be touching the surface.
And then, the same problem will happen again.

"Why" is not about assigning blame.

When you ask "why," some people feel like they are being blamed.

Why couldn't you do it?
Why were you late?
Why are the numbers insufficient?
Why didn't you check?

When you ask in this way, the team goes on the defensive.

They look for excuses.
They polish their reports.
They avoid responsibility.
They stop speaking their true intentions.
They stop reporting problems early next time.

This will not improve the company.

The "why" used to sharpen business sense is not about assigning blame.
It is a question for looking at the structure.

Why did these numbers turn out this way?
Why was this decision delayed?
Why was it not decided in this meeting?
Why did this customer leave?
Why couldn't this person take action?

Ask not to blame, but to find reproducibility.

It is not just about finding the reasons why things didn't go well.
Look at the reasons why things went well in the same way.

Why did this initiative grow?
Why did this customer continue?
Why was this team able to act?
Why was it decided in this meeting?
Why did these numbers improve?

"Why" is not a word for blaming failure.
It is a word for transforming events into a form that can be used for the next decision.

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People who grow see phenomena and structures separately.

What makes the difference in business is what happens after seeing the phenomenon.

Even when looking at the same facts, there are those who stop there, and those who dig down to the structure.

For example, sales increased.

People who stop there see it as "it went well." But people who grow look at how it grew.

Did new customers increase?
Did the unit price of existing customers rise?
Was it achieved through discounting?
Is it dependent on a specific salesperson?
Did the entire market just grow?
Is it the effect of a temporary campaign?
Are you forcing the team to work extra hours?

Even with the same sales increase, the meaning is completely different.

For example, meetings increased.

People who stop there see it as "collaboration increased." But people who grow look at the content of those meetings.

What kind of meeting is it to decide what?
Who makes the decisions?
What is being taken away from the meeting?
Are you discussing the same points every time?
Has the team's behavior changed after the meeting?
Is the structure such that things won't progress unless you increase the number of meetings?

Even with the same increase in meetings, the meaning is completely different.

For example, an employee resigned.

People who stop there see it as "personal circumstances." But people who grow look at the signs leading up to it.

When did that person start speaking up less?
Were the expectations aligned?
Did their responsibilities increase without being given the authority?
Were the evaluation criteria ambiguous?
What did the supervisor overlook?
Are the same signs appearing in other members?

Even with the same resignation, the meaning is completely different.

Do you stop at the phenomenon?
Or do you look at the structure?

This is where the difference in business sense emerges.

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When you repeat "why," the position of your countermeasures changes.

When you repeat "why," you realize that the countermeasure you first thought of is off the mark.

For example, the sales closing rate is dropping.

Looking only at the surface, it appears to be a problem with sales ability.
Therefore,

You conduct sales training.
You increase role-playing.
You increase the number of sales meetings.
The manager accompanies the sales staff.

Of course, there are cases where that is necessary.
But when you dig into the "why," you can sometimes see a different landscape.

Why did the closing rate drop?

The people we are negotiating with have changed.

Why did the negotiation partners change?
Because we changed the marketing appeal.

Why did we change the appeal?
To increase the number of leads.

Why did we prioritize the number of leads?
Because the KPIs were too focused on lead volume.

Looking at it this far, the problem is not just sales ability.

Marketing KPI design.
Target misalignment.
The connection between sales and marketing.
Management that pursues quantity over quality.
The numbers that management is looking at.

It expands that far.
Then, the countermeasures also change.

Instead of just sales training, we review the target.
We look at lead quality.
We change the KPIs.
We look at customer attributes after the sales meeting is set.
We change the meeting structure between sales and marketing.

When you dig into the "why," the focus of your countermeasures shifts.
This is important.

If you misidentify the location of the problem, no matter how hard you work, the company will not move.

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Numbers are useless unless you ask why

Numbers are important.
However, numbers have no meaning just by looking at them.

Sales went up.
Gross profit went down.
Churn rate went up.
The number of business meetings increased.
The number of hires increased.
Overtime hours increased.

Numbers show facts.
But they don't tell you the reasons.

What is the reason sales went up?
What is the reason gross profit went down?
What is the reason the churn rate went up?

What is the reason orders didn't increase even though the number of business meetings did?
What is the reason the organization didn't get stronger even though the number of hires increased?
What is the reason results didn't improve even though overtime hours are increasing?

If you don't ask these questions, numbers are just reports.

In companies with weak management, numbers are just lined up.

But even though they are looking at the numbers, the company doesn't move.
Why?

Because they aren't using the numbers for decision-making.

A variance occurred.
What does that mean?
Which assumption was wrong?
Which action plan will be changed?
Who will act by when?
Which numbers will be checked next time?

Only after deciding these things can numbers be used for management.

The ability to look at numbers is not just the ability to read them.
It is the ability to ask "why" about the numbers and turn them into the next action.

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Success is also dangerous if you don't ask why

Many people ask "why" when they fail.
But what is truly important is to ask it when you succeed as well.

If you feel relieved because you succeeded, you won't leave behind any reproducibility.
If you don't look at why things went well, you won't be able to do the same thing next time.

Was it just that the market was growing?
Was it just that the competition was weak?
Was it the strength of a specific person in charge?
Was the timing just good by chance?
Was it just that the price was low?
Was it supported by the trust of existing customers?
Was it just that the front line was pushing themselves to absorb the load?

Success is easier to misunderstand than failure

They mistake the reasons for their success as their own ability.
They mistake a tailwind in the market as a victory of strategy.
They mistake the overexertion of the front lines as the strength of the organization.
They mistake a chance order as sales prowess.

This misunderstanding is dangerous.
Companies that do not break down their successes will miss the mark on their next decision.

People who grow ask "why" not only about failures but also about successes.

Why did we grow?
Why were we chosen?
Why did it continue?
Why did it move?
Why was it decided?

Those who can structure success can use it for their next decision.
Those who leave success as a mere feeling assume they can do the same thing next time.

This difference is significant.

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The habit of asking why creates criteria for judgment

Business sense is not a one-off flash of inspiration.
It is the result of continuously turning daily events into criteria for judgment.

When you repeat the question of "why," criteria for judgment remain within you.

This way of growing is dangerous.
This meeting will not reach a decision.
This hire will fall apart after they join.
This revenue will not leave any profit.
This customer should not be pursued.
This KPI will distort the front lines.
This organization has ambiguous responsibilities.

Such criteria for judgment are not acquired overnight.

They are accumulated little by little by not letting the facts that occurred pass by, and by asking "why" every time.

That is why people who grow do not stop at the event.
They always transform it into a structure.

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Criteria you can use tomorrow

When something happens, it is better not to jump straight to a solution.
First, ask why.

The following five things are what you should look at.

The first is, what happened?

Did sales drop?
Did gross profit decrease?
Did the number of meetings increase?
Did cancellations increase?
Is hiring not progressing?
Is the team exhausted?

First, do not leave the facts ambiguous.

The second is, where is it showing up?

Is it showing up in the numbers?
Is it showing up in customer reactions?
Is it showing up in meetings?
Is it showing up in the atmosphere on the ground?
Is it showing up in chats or reports?
Is it showing up in the ambiguity of responsibility?

Look at where the problem is appearing.

The third is, why did it happen?

Is it a people problem?
Is it a structural problem?
Is it a problem with how numbers are viewed?
Is it a problem of customer understanding?
Is it a problem of responsibility design?
Was the premise wrong to begin with?

Do not jump to a single conclusion about the cause.

The fourth is, which premise was incorrect?

The market premise?
The customer premise?
The organizational premise?
The pricing premise?
The man-hour premise?
The hiring premise?
The execution capability premise?

Find where the premise failed.

The fifth is, what will you change next?

Will you change the KPI?
Will you change the target?
Will you change the meeting structure?
Will you clarify who is responsible?
Will you review the pricing?
Will you change the order acceptance criteria?
Will you decide what to stop doing?

The purpose of asking why is not to analyze.
It is to change the next decision.

Do not let the facts that occurred end as just facts.
Think about why they happened.
Turn them into a structure.
Connect them to the next course of action.

Only by going that far does experience become a standard for judgment.

How to move a company using KPIs and budget-versus-actual management instead of just ending with analysis.
I wrote about that in a previous article here.

"Management Strategy | Moving a company using KPIs and budget-versus-actual management instead of ending with analysis"

Business sense is not polished just by looking at what has happened.

It is polished when you break down the facts, ask why, and use them for your next decision.

Next time, I will write about "comparison".

People with sense are always comparing things with other cases.

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

From next time on, I will continue to break down business sense not as a talent, but as a standard for judgment that can be polished through practical work.