Management Perspectives

MYTH 1: WORK-LIFE BALANCE IS KEY

Many people chase work-life balance. It is the idea that they can find a happy medium between their professional and personal lives. However, work-life balance is a myth that has been perpetuated for decades. In reality, the two are not separate, and it is delusive to see them as counterparts that need to be balanced.

Rather than trying to balance work and life, it is more effective to integrate them and see work as a part of life. Forget worklife balance and aim to find life balance instead.

Achieving life balance is not only about the time you allocate to any aspect of your life but also about mental health. Prioritising self-care, hobbies, and time with loved ones can help individuals perform better at work and ultimately achieve their goals. The key is to find a blend that works for you, whether it's taking breaks during the workday, working from home, or setting clear boundaries regarding your availability.

If work is sucking the life out of you, and as a result, you spend non-work time with recharging, only to have your energy depleted again the next day, something is fundamentally wrong. Work should be a contributor to your life balance, not something that needs to be counter-balanced.

MYTH 2: SUSTAINABLE BUSINESSES CANNOT EXIST AT SCALE

For a long time, there was this notion that sustainable businesses were only possible on a small scale. The idea was that if you wanted to be environmentally conscious, you had to make sacrifices in terms of profit and growth. However, this is not the case.

In fact, sustainable practices can lead to cost savings and increased efficiency, which can result in greater profitability. Furthermore, consumers are increasingly prioritising sustainability in their purchasing decisions, which can lead to increased demand for sustainable products and services.

Patagonia, the billion-dollar apparel and gear company, for instance, is a poster child for sustainability in business. The company has not only achieved financial success but also made significant strides in environmental and social sustainability, by constantly challenging themselves to find new solutions to old problems.

Sustainability can take many forms, from reducing waste and emissions to promoting social responsibility. Regardless of the specific practices, sustainable business models can be profitable and successful on a large scale.

MYTH 3: THE CUSTOMER IS ALWAYS RIGHT.

The notion that customer focus is all that matters has been around for over a century, and it is a common belief that the customer should always come first. While it is important to prioritise customer satisfaction, it is not the only factor that matters in business.

Listening to customer feedback and addressing their needs can lead to loyal customers, but businesses should also consider their own needs. For example, businesses also need to focus on employee satisfaction, financial performance, and their own identity.

A few years back, we took the decision to walk away from a lucrative client contract. While working with the customer, we became aware of questionable ethical standards in their business. This customer was exploiting vulnerable groups for financial gain. The customer is always right? Certainly not. For us, it was more important to protect and maintain our own integrity and live up to our values than to continue to service that client.

MYTH 4: STRATEGIC PRICING IS COMPLEX

One common myth in business is that finding the right price for your offering is highly complex. As a result, many businesses do not even try to find the optimal price point. Instead, they simply base their pricing either on their own cost structure or the pricing of the competition—and as a result leave huge parts of their profit potential untouched.

While it is important to be aware of the competition, businesses should follow a more strategic, value-based pricing approach. This can maximize their profit potential in smarter ways, than trying to sell more and more products at a certain price point.

Big businesses, for example car manufacturers, use elaborate pricing methods like conjoint measurement to determine ideal price points and bundles. The core of these methods is about understanding which aspects of your offering clients value the most, related to the price of your product or service.

Once you understand what customers truly value about buying from you, you can differentiate your offering in ways that it reflects their willingness to pay. This allows you to move away from cost or competition focused pricing.

Every business can do that on a small scale, for example by surveying their customers, or by asking them while you work with them. Figure out what the true value is you bring, and how it relates to your pricing. It’s as easy is that.

MYTH 5: FAILURE IS ALWAYS BAD

Nobody likes failure, and we typically see it as a setback to success. We try to avoid making mistakes, sometimes at all cost, because we fear the consequences. However, failure can be a valuable learning experience that ultimately leads to larger future success.

In fact, many successful business leaders have experienced failure at some point in their career, some of them extensively. Take Virgin founder Richard Branson, for example. Over a dozen of his businesses went bust, including his attempts to sell Virgin Cola, lingerie, wedding dresses, and cosmetics. Branson kept going and turned Virgin into the success it is today. The key is to learn from mistakes and use them as an opportunity to grow and improve. By reframing failure as a learning experience, businesses can take more risks and innovate without fear of failure. This can lead to breakthroughs and new ideas that ultimately lead to success.