Well, we will not go into the meaning we give to a particular situation today. We will focus our discussion in the assumption that analyses have been done and the situation has been identified as a problem.
Now, I see people 'solving' problems in my line of work and many are not clear of what they can or cannot do. I guess it's fair to say that if our solutions to a problem evolve around what we cannot do, it is not a good strategy.
So, at the very beginning when we approach a problem, we can first determine what we can or cannot do so that we focus on the right strategies. However, do note that if there are areas where we don't have the capability, do remember that we can leverage on others to help.
To keep it simple what strategies are more effective, I have coined an acronym 'S.O.A.P.' It stands for 4 approaches to a problem : Solve, Overcome, Avoid and Prevent.'
Solve:
We design a solution that can neutralize the problem. For example, we fix a leaking tap or change the tyres of our car. When using the 'solving' approach, check whether you have the RESOURCES to get the job done. Resources here refer to time, money and effort. If yes, the solving is an effective way.
Prevent:
We always here the saying 'prevention is better than cure'. While preventing seems to be the best solution, the question remains: Can you control the source of the problem? If you have no control of the source, then preventing will not be effective. We employ the right staff to execute the work to prevent facing problems later. The key to this strategy is that we have CONTROL over the source of the problem.
Avoid:
In avoiding, we have no control over the source of the problem. When the problem happens, we make sure we are out of harm's way and in doing so, are not affected by the negative factors. Avoiding is a good strategy if we have MOBILITY i.e. we have the capability to move things around. Examples of avoiding a problem is like we back up our business data. We know hacking and computer virus could cause data loss, so we keep a separate set of backup in an independent storage.
Overcome:
When we don't have the resources to solve a problem, we don't have control over the problem source and we cannot avoid the issue, then overcoming becomes a relevant approach. In other words, we receive the beatings of the problem but we compensate the situation with benefits from other sources so that the net effect is not too bad. When a person is stuck in a jam, she may overcome her frustration by listening to her favorite songs.
Now, let's use SOAP on some of the common scenarios below:
- Your expenses will go up when GST is implemented:
- Can you stop GST? No. So prevention is out.
- Do you have the resources to solve GST? No, you are not the government.
- Can you avoid? Well, if you want to migrate, then it makes sense. If not, no.
- Can you overcome? Yes, that's the only option left anyway :) We can increase our price like the rest to make more money and we can look for new business to cover for higher expenses. We can also save by cutting wastage.
- Your business will cost higher once GST is implemented and you anticipate your customers may buy less:
- Solve: I'm able to justify the price increase and my clients should be able to accept since my products are unique (i.e. you have the resources to maintain sales)
- Prevent: I lock the price in 2014 for 2 years so that my customers get 6% discount to nullify GST.
- Avoid: I position my services under 'education' so that it is exempted from GST.
- Overcome: Well, I need to get more customers to cover for the possible sales decline in my current customers.
Happy solving!
