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Perfection is the Poison to Profits
Perfection is the Poison to Profits
BML #105: Why Perfection is Killing Your Profits—And How to Stop It
“You may have heard the phrase “Perfection is the Poison to Profits. (PPP)”
What does that mean? Simply put, it helps you leverage your time for optimal results.
In the words of Peter Drucker, “There is nothing so useless as doing efficiently that which should not be done at all.”
This timeless wisdom serves as a stark reminder that in business, the relentless pursuit of perfection can often be a misallocation of precious resources.
An entrepreneur should always be on the lookout for underperforming resources (low leverage) and find ways to transform them into higher-performing, more impactful assets (high leverage).
This is how you “squeeze more juice” and boost the profits of the business—by maximizing the potential of every resource.
You should do this in every aspect of the business. This builds on mastering priorities.
Perfectionism, while alluring, can trap us in a cycle of over-analysis and endless revisions, consuming time and energy that could be better spent driving value.
When we focus on achieving 80% of our key objectives, we unlock the potential to deliver results in a fraction of the time it would take to perfect every detail.
This shift in mindset is not about lowering standards, but about optimizing our efforts to maximize profitability.
By embracing the 80% rule, we position ourselves to make impactful decisions and accelerate growth, rather than allowing perfection to poison our profits.
Real-Life Example:
I was with a client this week, Dave, who was frustrated because a key technical employee wasn’t hitting an important deadline. This was a crucial deadline. Dave finally asked Chris why the work wasn’t done yet. Chris replied, “Because we still need to perfect it.”
Dave, clearly annoyed, responded, “No, it doesn’t. It just needs to get to this point.”
I jumped in and said, “Perfection is the poison to profits.”
Dave nodded, “Exactly. Chris never considers it done until every ‘i’ is dotted and every ‘t’ is crossed, and that’s killing our cash flow.”
The Allure of Perfection
Perfection is endless revisions. It takes the remaining 20% of the work but 70-80% of the time.
It’s the over-polishing of everything (the shoes, email, the meeting).
Leaders driven by perfectionism believe that by refining every aspect of their business, they can achieve the highest possible quality, enhance customer satisfaction, and build an impeccable brand reputation.
It may seem like you are creating a great business, however, you’re not leveraging your time which can lead to diminishing returns/profits.
The Hidden Costs of Perfectionism
Time Drain: Delays, missed deadlines, longer time to market—all lead to lost profits.
Opportunity Costs: Instead of being focused on new products, innovations, or market expansion, you’re focused on perfectionism.
Employee Burnout: Don’t need to say much here.
Customer Dissatisfaction: Ironically, perfectionism can lead to customer dissatisfaction if it results in delays, unavailability of products, or unmet expectations.
Embrace Excellence Over Perfection
Instead of perfection:
Focus on Value: Encourage a shift from perfectionism to delivering value—meeting customer needs effectively and efficiently.
Prioritization: Emphasize the importance of prioritizing tasks and focusing on what truly matters for profitability and growth.
Iterative Improvement: Advocate for continuous improvement rather than perfection—releasing products or services and refining them based on feedback.
Real-World Example
We were working on an innovative product design that no one had seen.
We did research and thought the market would respond positively.
We got the first draft of the design completed really quickly, within a couple weeks.
Our designers decided to do more research to perfect it, which they thought they did.
It took an additional month to complete.
Guess which design the market loved? The simple, clean first one.
We lost profits in a multitude of ways.
How to Fix the PPP Syndrome?
Set Clear Goals: Encourage setting realistic, measurable goals rather than aiming for perfection.
Embrace ‘Good Enough’: Promote the idea of “good enough” as a standard that meets quality needs without overextending resources.
Encourage Feedback Loops: Implement systems for gathering and acting on customer and team feedback to make continuous improvements.
Master the art of optimal time leverage, and whenever you’re knee-deep in a project, just chant the team’s favorite mantra:
“Perfection is the Poison to Profits—so let’s not drown in the details!”
If you’re facing cash challenges, let’s talk.
Perfection is the Poison to Profits
Perfection is the Poison to Profits
BML #105: Why Perfection is Killing Your Profits—And How to Stop It
“You may have heard the phrase “Perfection is the Poison to Profits. (PPP)”
What does that mean? Simply put, it helps you leverage your time for optimal results.
In the words of Peter Drucker, “There is nothing so useless as doing efficiently that which should not be done at all.”
This timeless wisdom serves as a stark reminder that in business, the relentless pursuit of perfection can often be a misallocation of precious resources.
An entrepreneur should always be on the lookout for underperforming resources (low leverage) and find ways to transform them into higher-performing, more impactful assets (high leverage).
This is how you “squeeze more juice” and boost the profits of the business—by maximizing the potential of every resource.
You should do this in every aspect of the business. This builds on mastering priorities.
Perfectionism, while alluring, can trap us in a cycle of over-analysis and endless revisions, consuming time and energy that could be better spent driving value.
When we focus on achieving 80% of our key objectives, we unlock the potential to deliver results in a fraction of the time it would take to perfect every detail.
This shift in mindset is not about lowering standards, but about optimizing our efforts to maximize profitability.
By embracing the 80% rule, we position ourselves to make impactful decisions and accelerate growth, rather than allowing perfection to poison our profits.
Real-Life Example:
I was with a client this week, Dave, who was frustrated because a key technical employee wasn’t hitting an important deadline. This was a crucial deadline. Dave finally asked Chris why the work wasn’t done yet. Chris replied, “Because we still need to perfect it.”
Dave, clearly annoyed, responded, “No, it doesn’t. It just needs to get to this point.”
I jumped in and said, “Perfection is the poison to profits.”
Dave nodded, “Exactly. Chris never considers it done until every ‘i’ is dotted and every ‘t’ is crossed, and that’s killing our cash flow.”
The Allure of Perfection
Perfection is endless revisions. It takes the remaining 20% of the work but 70-80% of the time.
It’s the over-polishing of everything (the shoes, email, the meeting).
Leaders driven by perfectionism believe that by refining every aspect of their business, they can achieve the highest possible quality, enhance customer satisfaction, and build an impeccable brand reputation.
It may seem like you are creating a great business, however, you’re not leveraging your time which can lead to diminishing returns/profits.
The Hidden Costs of Perfectionism
Time Drain: Delays, missed deadlines, longer time to market—all lead to lost profits.
Opportunity Costs: Instead of being focused on new products, innovations, or market expansion, you’re focused on perfectionism.
Employee Burnout: Don’t need to say much here.
Customer Dissatisfaction: Ironically, perfectionism can lead to customer dissatisfaction if it results in delays, unavailability of products, or unmet expectations.
Embrace Excellence Over Perfection
Instead of perfection:
Focus on Value: Encourage a shift from perfectionism to delivering value—meeting customer needs effectively and efficiently.
Prioritization: Emphasize the importance of prioritizing tasks and focusing on what truly matters for profitability and growth.
Iterative Improvement: Advocate for continuous improvement rather than perfection—releasing products or services and refining them based on feedback.
Real-World Example
We were working on an innovative product design that no one had seen.
We did research and thought the market would respond positively.
We got the first draft of the design completed really quickly, within a couple weeks.
Our designers decided to do more research to perfect it, which they thought they did.
It took an additional month to complete.
Guess which design the market loved? The simple, clean first one.
We lost profits in a multitude of ways.
How to Fix the PPP Syndrome?
Set Clear Goals: Encourage setting realistic, measurable goals rather than aiming for perfection.
Embrace ‘Good Enough’: Promote the idea of “good enough” as a standard that meets quality needs without overextending resources.
Encourage Feedback Loops: Implement systems for gathering and acting on customer and team feedback to make continuous improvements.
Master the art of optimal time leverage, and whenever you’re knee-deep in a project, just chant the team’s favorite mantra:
“Perfection is the Poison to Profits—so let’s not drown in the details!”
If you’re facing cash challenges, let’s talk.
© 2024 Deliberate Achievement LLC