April 6, 2006

Technology is a tool not a solution – you better know how to use it.

Attitudes, Productivity, Strategy

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Many moons ago a buddy and I got a sub-contracting gig putting roofing shingles on a building. It was our first and last roofing job – we were terrible. And not because we only had old fashioned hammers instead of the (then) new-fangled air guns. No, it was because we didn’t know what we were doing – didn’t line things up right, didn’t use the right kind of nails etc. An air gun would have only helped us makes mistakes quicker.

Technology is like that. Besides knowing how to use it, you have to know what to use it for. For most businesses that means you’re going to have to change the way you work in order to get the benefit of new technology. And you’re going to have to change your mind set. Buying the newest technology won’t do that for you. Ten years ago, many small companies didn’t adopt new technology for that reason. Today that would be a death sentence.

Put Data in Only Once -Use it Often
Here’s a small example in the field of IT – information technology. One of the principles of ideal IT design is that you only have to capture data one time in one place, then you can use it everywhere. This means its much cheaper and easier to use the information you have than it would be if it were only captured on paper.

For example, I know a guy who owns several title companies that do real estate closings. Each time they get a new file, they capture a lot of info including the name of the person who sent the file. In the real olden days, those files were paper. so even though each file had a source, there was no easy way to aggregate that information and learn who had been sending over the most files every month. Or who was sending over the most profitable files, or if there was a pattern of whose files tended to have more problems.

That was the olden days. Putting that information on a computer helped a bit. But unless you changed how people put that information in, you still couldn’t get it out right. Some would put it in a spreadsheet, some in a word processing document. different people might get business from the same source but spell the name differently or one would use a first name and last name and one would use the last name and the company name.

But when the operating procedures (ie the ways people work) are adapted to use the tools, then data goes in the system correctly. Once that data is in the system it’s relatively easy to get it out for all kinds of new uses. This makes it cheap and easy to do things like:

  • Reward people who send the most business
  • Reward people who send the best business
  • Educate people who send problem business
  • Search out and build a better relationships with people who don’t send very much business

However, the owner of the companies that I was telling you about is from the old school. He wasn’t raised on technology, and while he does use it, he’s never been shown how to get the best use out of it. So he didn’t think of all the things he should be able to do with it.

But if you want to survive you’d better get with the program – your competition is, and your customers demand it. Back when I did my one and only roofing job, many knowledgeable roofers still used a hammer, not an air gun. None do today.

Takeaways:

  • If a salesperson tries to sell you solutions – RUN AWAY! They are selling tools.
  • Learn how to use the tools – and that means changing the way you work and the way you think.
  • Have a technology audit – get someone to come in and look at the way you and your people use technology. The result should be changes to the way you work – not just sales of more stuff.

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About the author 

John Seiffer

I've been an entrepreneur since we were called Business Owners. I opened my first company in 1979 - the only one that ever lost money. In 1994 I started coaching other business owners dealing with the struggles of growth. In 1998 I became the third President of the International Coach Federation. (That's a story for another day.) Coaching just the owners wasn't enough for some. So I began to do organizational coaching as well. Now I don't have time to work with as many companies as I'd like, so I've packaged my techniques into this Virtual CEO Boot Camp.

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