Dealing with Obstacles Before They Become Problems

In my previous post on balancing optimism and pessimism, I discussed the importance of using both optimistic and pessimistic patterns of thinking to identify and overcome problems that may arise as you go after your goals.  Today, I want to look at a specific ACTION you can take in order to do this.

It’s called risk analysis, and you do it whether you realize it or not. It’s just that after you read this, you’ll be able to take an objective, realistic approach to doing it.

Many people get emotionally attached to their goals, such that if they fail to reach a goal, due to some obstacle or problem, they FEEL like a failure themselves.

Let me say this: You are NOT your goals.

In other words, if you fail to reach a goal, it does NOT mean that YOU are a failure.

It simply means that you either don’t really understand your ULTIMATE goals, or that you don’t focus on SOLUTIONS.

A failure simply means that you need to SELECT a DIFFERENT course of ACTION.

And the best time to identify those alternate courses of action is BEFORE the problem arises. That way, when a problem does arise, you ALREADY KNOW your course of action.

And you can use this technique for any goal, whether it’s a business goal, a project at home, event planning, etc.

Risk Analysis

Risk analysis will focus your thinking on SOLUTIONS and finding DIFFERENT PATHS to your goals.  It starts by using the pessimistic pattern of thinking to analyze your goals for potential problems.

So, put on your pessimist’s hat.

Create a chart like the one below for each specific goal that you have.  Enter the goal into the first line. Be specific (include a measure and a deadline).

Next, think of all the things that could go wrong, and enter them into the chart as well (an explanation of each column follows the chart).

Goal: Build a down line of 50 distributors by June 30, 2010.
Potential Problem and Outcome	Probability	Impact	RISK
Unable to generate a steady stream of leads, which will not allow me to build my business	3	5	15
Closing less than 5% of pay-per-click leads will not produce enough ROI to sustain marketing	4	2	8

In the Potential Problem and Outcome column, identify what the potential risk is and what the outcome of that risk will be if it occurs. The outcome should DIRECTLY relate to the GOAL.

In the Probability column enter the likelihood that this problem will actually occur. Use a scale of 1 to 5, with 1 being highly unlikely and 5 being imminent.

In the Impact column, enter the likelihood that this problem will prevent you from achieving your goal. Again, use a scale of 1 to 5 with 1 being very little or no impact and 5 meaning it will completely stop you from reaching your goal.

Multiply the Probability and Impact columns and place the result in the RISK column.

It’s important when you complete the Impact column to consider NOT the RESULT of the problem, but the impact that problem will have ON ACHIEVING THE GOAL.

In the example above, “closing less than 5% of pay-per-click leads will not create enough ROI to sustain marketing” does not mean that your business will collapse and you’ll never be able to sponsor 50 people into your downline. It just means that pay-per-click won’t be a viable source of leads. That’s why the impact ON THE GOAL is only a 2. The impact on using pay-per-click as a source of leads would be a 4 or 5, BUT THAT IS NOT THE GOAL.

Do you see the difference?

On the other hand, “Unable to generate a steady stream of leads” DOES mean that you will not be able to sponsor 50 people by the deadline.  That’s why the impact is a 5. This risk, should it come to fruition WILL stop you from achieving your goal.

Risk Prioritization and Mitigation

Now that you have your RISK totals, you can prioritize your list of potential problems. You’ll want to address the risks with the total highest RISK first, as these will be the most likely to derail your goals.

Use common sense here. If a risk value seem too high or too low, re-evaluate the risk and determine why. Maybe you have the outcome wrong. Maybe the probability or impact isn’t right. Trust your instincts, but FOLLOW THE RULES when you re-calculate the risk!

Now is the time to start using the optimistic pattern of thinking. Determine in what ways you can address the problems to either eliminate them or at least minimize the impact they will have on achieving your goals.

Add another column to your risk chart to include your mitigation actions.

Goal: Build a down line of 50 distributors by June 30, 2010
Potential Problem and Outcome	Probability	Impact	Total	Mitigation Actions
Unable to generate a steady stream of leads, which will not allow me to build my business	3	5	15	Determine at least 5 lead sources. Create a plan for implementing those lead generation mechanisms.
Closing less than 5% of pay-per-click leads will not produce enough ROI to sustain marketing	4	2	8	Locate training courses on closing leads. Discuss closing with Joe Schmoe, the expert closer in my upline. Listen in on 3-way calls to learn closing techniques.

Notice how the column is titled Mitigation Actions. You always want to make sure that your mitigation plans are ACTIONABLE. They MUST be things you can DO.

For example, a mitigation plan to “get better at closing leads” is NOT actionable!

On the other hand, “locate training courses”, “talk to Joe Schmoe”, and “listen in on three-way calls” are all actionable.

How do you know if a mitigation plan is actionable?

Just ask yourself, is this something I can PHYSICALLY do RIGHT NOW, or do I have to THINK about what needs to be done? If you can physically do it right now (or schedule it for a SPECIFIC TIME) then its actionable.

Look at the examples above again. See the difference now?

Risk Recovery

But what happens if a risk actually comes to fruition? What if, even with your five different lead sources, you still can’t generate a steady stream of leads? What if, even after all of your training, you still can’t close more than 5% of your pay-pre-click leads?

It’s best to know what you will do BEFORE the problem arises, so add another column to your chart.

Goal: Build a down line of 50 distributors by June 30, 2010
Potential Problem and Outcome	Probability	Impact	Total	Mitigation Actions	Recovery Actions
Unable to generate a steady stream of leads, which will not allow me to build my business	3	5	15	Determine at least 5 lead sources. Create a plan for implementing those lead generation mechanisms.	Based on leads coming in, recalculate the goal. Focus in on the lead source generating the best leads and expand on it.
Closing less than 5% of pay-per-click leads will not produce enough ROI to sustain marketing	4	2	8	Locate training courses on closing leads. Discuss closing with Joe Schmoe, the expert closer in my upline. Listen in on 3-way calls to learn closing techniques.	Drop pay-per-click as a lead source for now. Allocate funds to an alternate lead source. Recalculate goal if necessary.

In the Recovery Actions column, list the actionable steps you will take to recover from the risk.

Pretending that problems won’t happen is unrealistic. Knowing what action you will take IMMEDIATELY if they do arise will go a LONG way in helping you feel more confident and staying on track to your goals.

I also want you to notice that NONE of the recovery actions say you should give up!

Even if you can’t brainstorm any recovery actions, there is ALWAYS at least ONE action you can use in ALL circumstances.  But ONLY use it as a LAST RESORT!

The action is this: Readjust your goal.

RARELY should this be your ONLY recovery action.

In this example, you might decide to sign up only 25 people instead of 50, or push the date out to the end of the year.

Your Risks Are Alive!

It is very important to re-evaluate your risk analysis periodically.  Some may go away, others will need to have their Probability or Impact values readjusted based on your current situation. Cross off any Mitigation Actions you have completed, and add any new ones.

You may also find new risks that present themselves. Follow the same procedure above to evaluate, mitigate and plan a recovery should they occur.

The idea, of course, is to eliminate risks from the list or at least mitigate them to the point where they are insignificant.

Like I said, you do this anyway. Every time you think of a problem or anytime an obstacle is presented before you, you analyze it.  You identify the risk it poses to reaching your goals, and you make a decision how to handle it.

Risk analysis just makes it controlled, and allows you to identify problems before they derail you or set you back.  It increases your confidence, focuses your energy on your goals, and relieves worry about things that could go wrong.

Don’t spend TOO much time on this! It should NOT get in the way of your day-to-day operations.  Focus on your MAJOR goals only.  It will take a little longer to set up initially, but should not take too much effort to maintain.

Use this technique for business goals, a project that you are working on either at work or at home, or for the next big event that you are planning.

Give it a try, and let me know how it works for you!

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