Dr. Rick Franza, Dean of the Hull College of Business, discusses a different, timely business topic each Monday in this column. This week, he talks about how to review the past year to prepare for the new year. The interview has been edited for clarity and impact.
ABD: 2022 is almost in the history books. The end of the year seems like a good time for business leaders to review the past year. Should we just breathe a sigh of relief at having made it through it and move on?
Rick: Often, when people finish big things, they treat it as a relief instead of celebrating. This was our first full year out of the covid-type way of running things, but then we dealt with inflation, high-interest rates, and a tough hiring market. There were a lot of tough things a business had to go through. This was one of those years where you want to look back at it in relief rather than celebrating, but that’s not the best thing to do.
ABD: What are some ways to celebrate the year and look at it constructively?
Rick: One thing is, don’t be too hard on yourself. We tend to be our own worst critics. Look back at what you did well, the resiliency factor of having gotten through the tough stuff, and take a moment to celebrate the good things. Ask yourself, What did I accomplish? What did I get better at? What did we in the business do well to enable us to do better?
But don’t strain your arm patting yourself on the back. There were a lot of other people responsible for the good things. Make sure you take time to thank them.
And then you ask, What did I not do as well as I’d have liked to? What things do I need to improve on? What skill sets do I need to think about in professional development?
Often, we lose the forest for the trees, but it’s important for managers and owners to ask, Am I really making my decisions based on how I differentiate my business from the competitors? Am I executing my strategy? We get so caught up in the day-to-day tasks but ultimately, we’ll be successful if we’re consistent with our strategy and make our decisions based on that.
ABD: You talk about recognizing what you did well or what you need to do better, but often it’s hard for business owners to gain a good perspective on themselves. Is there a way they can do that?
Rick: The end of the year is a good time to get together with some peers who are not necessarily in your industry and talk about things. You’ll find a lot of similarities even if your businesses are different. You can commiserate and learn. There’s a lot of opportunity to learn from people in other industries. You can’t co-opt completely what they did, but you can adapt those ideas for your business.
I’ve also found when I spend too much time consciously thinking about a problem is when I have the hardest time solving it. But when I go for a run or do something else, it frees up my mind to solve it. So this is also a good time to get some distance from the business, as I mentioned in a previous article.
You should be doing the things you’re good at and find people who can do the things you suck at. Leverage what you’re good at by doing more of it. I’m big on humility, but if you’re too humble, you won’t leverage what you’re really good at.
ABD: We hear a lot of news stories about the economy and a possible recession in 2023. What should businesses do to prepare for the upcoming year of economic uncertainty?
Rick: Figure out what’s relevant to you. We can look at the macro indicators but do those really affect you? It’s a good time to think about what processes you have that aren’t that good and how you can make them more efficient to diminish costs and maximize profit. It’s a good time for fresh ideas.
And however secure you are in your position, it’s a good time to update your resume because a new opportunity may come along. It also gives you a chance to reflect on your accomplishments. It helps you promote your business by selling yourself.
Who knows if there’ll be a recession or not. No one is sure what will happen economically. But consider the different scenarios and think about how you’re going to react to each one and deal with it. Be proactive rather than reactive.
