Yahoo News To make the big business decisions, find peace, quiet and time to think
Q I recently read an article about how senior executives make big decisions. Most of them advised not to act rashly, but others talked about going with your gut instinct.
How have you dealt with the 'biggies' at Timpson?
A If you’re looking for a magic formula that will help you make up your mind, forget it; picking the right path is better done by backing your judgement. Making a big decision or doing a deal is an art, not a science.
Thirteen years ago, we were negotiating to sell Sketchley to Johnson Cleaners, whose lead negotiator was obsessed with a traffic-light system. Fortunately, his calculations turned on enough green lights and he did the deal. If he had ignored the formula and relied on common sense, I'm pretty sure that he would have abandoned our negotiations.
My system simply involves writing a list with two columns: one for positives; the other for negatives. The exercise helps to get my thinking straight and I’ve usually made up my mind well before finishing the list.
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I never like taking big decisions at a meeting; it’s much better to make up your mind when you have peace, quiet and time to think.
Meetings can be used to debate the issues, but non-executives should leave the final decision to their chief executive.
One of our most important moves would have been thought far too risky. In 2008, photo retailer Max Spielmann's holding company went into administration. After a hyperactive three days spent looking at loads of their shops, my chief executive (and son), James, and I decided to bid for 180 shops.
Sales were falling by 50pc, because analogue film processing was quickly being replaced by digital cameras and mobile phones, but we had a plan, so we paid £1.4m to get a foothold in photo, which is
now our highest turnover service.
If you want new ideas, listen to your own colleagues, who know more about your business than any outsider
Most of our decisions that look risky to outsiders are no-brainers to us, because we constantly travel to our – and our competitors’ – shops to find out the facts.
However, no one can be certain about picking the right people. I didn't know it at the time, but choosing Paresh Majithia, our finance director, has probably been the best decision that
we’ve ever made.
You don't always know which decisions are the big ones, but time will eventually tell you when you’ve made a difference.
Q I'm constantly being pitched by consultants at conferences, but my business is doing well, so I don't feel like I need any help right now, but perhaps a fresh pair of eyes could bring me some real improvements. Should take the plunge?
A Consultants often go to conferences to look for new customers.
On some occasions, I’ve been approached after speaking on stage with an offer of advice on the very subject I was just speaking about.
You say that you’re doing well, so why seek help from someone who knows little about your business and doesn't understand your culture?
There’s always a chance that you could discover a new idea, but it will come at a cost – not just the consultancy fee, but the time that you spend meeting them, getting the advice and then putting it into practice.
Consultants have to be good at selling to build a business; they get you interested with tempting phrases such as, “do you want to improve your bottom line?” or “I can get you closer to you customers.” Before taking the conversation any further, remind yourself that they’re more interested in improving their own bottom line than yours.
If you want a few more ideas, there’s plenty of free advice available. Listen to your own colleagues, who know more about your business than any outsider. Most of our new developments are triggered by someone working in the business.
If your team has the freedom to use their initiative, they will keep finding ways for your business to improve. Aim to develop your company with the help of your in-house team and only use outsiders when you really need their advice. That's what entrepreneurs do.
There’s always the risk that by ignoring an outside offer of advice, you will miss out on the gem of an idea, but it’s probably a risk worth taking.
John Timpson is chairman of the high-street services provider, Timpson.
His latest book, Keys to Success, is available from the
Telegraph's online bookshop here
