Six Barriers to New Business Success

Incentives

Incentive systems in creative firms often misalign with business goals, leading to inefficiencies and misdirected efforts. Blair Enns highlights how firms that focus heavily on pitching attract individuals who thrive on the thrill of the pitch, making it difficult to shift towards more sustainable business practices 1. He emphasizes the importance of aligning incentives with desired outcomes, noting that commission-based models can drive sales teams to pursue any revenue, regardless of client fit 1. David Baker adds that systems designed for efficiency might inadvertently reinforce outdated behaviors, suggesting a need for reevaluation 2.

You want to look at what people are going to do, look at how they earn their money.

--- Blair Enns

Aligning incentives with strategic goals is crucial for fostering a culture that supports long-term success.

   

Accountability

Accountability systems play a pivotal role in either supporting or hindering new business strategies. Blair Enns points out that many firms fail to record sales conversations, missing opportunities to correct and improve business development strategies 3. He argues that without observing these interactions, firms cannot effectively address and rectify poor practices 3. David Baker stresses the need for new accountability mechanisms that do not simply reinforce existing inefficiencies 2.

Sales conversations are the place where your business development strategy, your pricing strategy, your positioning strategy, all these things go to die.

--- Blair Enns

Implementing robust accountability systems can transform these conversations into opportunities for growth and improvement.