Ben Woodhead Deputy editor - digital

Ben Woodhead is deputy editor - digital at the Financial Review Group. He writes on business, technology, politics and the economy and can be found on BRW, The Australian Financial Review and Smart Investor.

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Five business clichés that can spell disaster

Published 27 August 2012 05:26, Updated 28 August 2012 06:08

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Five business clichés that can spell disaster

If you think the customer is always right, you could be making the wrong choice for your business. Photo: Glenn Hunt

Via American Express’ small-business oriented Open Forum come five unwritten rules of business that can have disastrous consequences if they’re followed doggedly.

At least that’s the verdict of speaker and author on all things entrepreneurial Mike Michalowicz, whose Provendus Group aims to help companies that have hit a plateau get back into growth mode.

His tips for business clichés to be wary of:

  1. The customer is always right: Make that, the right customer is always right, Michalowicz advises. “Ultimately, you cannot adequately service a customer who isn’t a match for you business, and you shouldn’t try.”
  2. Put new hires on automatic probation: Three-month probationary periods for new hires are almost universal, putting the onus on recruits to prove their new boss made a good choice. “Talk about getting off on the wrong foot!” says Michalowicz. “A new employee should be welcomed with celebration and encouraged with ‘show us what you can do’ instead of ‘prove to me I didn’t make a mistake hiring you’.”
  3. Promote top performers to managers: Just because someone’s crackingly good at their job doesn’t mean they’ll be crackingly good as a manager. There are different skills required and in the worst case, a top performer who’s made a manager when they’re not equipped will cost your business sales and demotivate other employees.
  4. It’s all about the bottom line: Money made isn’t the only determinate of business success, writes Michalowicz. Ask yourself, “What kind of impact did the business have on its customers and community? How many employees are being supported by the business? What innovations did the company bring about?”
  5. Hire experienced “A” players: Experience doesn’t always equal quality. Look for intangibles in prospective hires, such as attitude, outlook and intelligence. Then give them the experiences they need to thrive.

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