From the Editor
Luis Ayala
As a consultant for distilled spirits producers, I am used to clients experiencing all sorts of problems, from fermentation issues to blending inconsistencies. Most of these problems are technical in nature and can easily be fixed in-house, once the proper procedures are defined and implemented. Many of the recent calls I’ve received, however, revolve around the topic of what to do about the Tariffs affecting imported goods needed for the survival of a distillery: raw production materials, equipment and bottling dry goods. These problems originate outside the distilleries and, thus, their solutions are not the typical ones.
When tariffs hit a precariously-balanced budget, throwing the finances into disarray, the first reaction may be a system-wide reduction or elimination of non-critical expenses, along with hiring freezes and/or firings. While these actions do have an immediate impact on the bottom line, they do little to protect the long-term survival.
- Research from Princeton University shows that people who live in poverty have to use a lot of their brainpower to deal with the challenges that come with being poor. This means they have less brainpower left to think about other important things in their lives. Because of this, they are more likely to make mistakes or decisions that can make their money problems worse. Likewise, a business that is on financial “life support” is not able to take advantage of growth opportunities, if these require capital or workforce investments.
- There is also the ‘abundance mindset,’ a concept credited to the self-help author, Stephen Covey. In his famous book, the 7 Habits of Highly Effective People, he describes the ‘abundance mindset’ as the belief that there is plenty out there and enough resources for everybody. This is at the core of Covey’s “Habit 4: Think Win-Win.” Most people think about succeeding in terms of someone else failing, and thus life becomes a zero-sum game. Win-win is about constantly seeking mutual benefit in all human interactions. To go for win-win, we not only have to be empathic, but also confident. We not only have to be considerate and sensitive, but also brave.
Searching for “win-win” involves all team players: it should be carried out before employees or contractors are let go. Isolated executives in a conference room will never come up with as many options as a team involving all the parties.
Cheers!
Luis Ayala,
Editor and Publisher
http://www.linkedin.com/in/rumconsultant