Understanding, and acting upon, Cause and Effect in your business requires a great deal of attention and honesty. If you don’t take the time to properly analyze what is happening in your business and the results you are creating you will end up misunderstanding the Cause and Effect of the actions you take, and this misunderstanding can have a big impact on your success.
There are many ways of misunderstanding Cause and Effect in your business (and your life) but two of the big ones, that Andrea and the WTL Team see over and over again in business, are “Fusing” and “Disassociating”.
Fusing Cause and Effect
The first mistake you might be making when trying to understand Cause and Effect in your business is by attaching, or fusing, a Cause and Effect that, in reality, have nothing to do with each other:
My idea sucks (cause), so I am not making money (effect) in my business.
Facebook doesn’t work (cause), no one is signing up for my list (effect).
Not making money in your business can be connected to so many different factors. Does your idea suck? Or are you missing the other possibilities and fusing the idea and missing money together as an incorrect Cause and Effect?
Likewise, the link to poor list growth could have nothing to do with your activities on Facebook, that connection may be in your imagination. Likewise, there is likely something that IS causing your lack of growth that is in your blind spot.
Disassociating Cause and Effect
A similar mistake can happen in the opposite direction. Instead of fusing together unrelated causes and effects, you end up ignoring, or disassociating, the true connection between a cause and effect.
I always feel hopeless and grumpy (cause). I can’t find enough clients (effect).
I work 14 hours a day (cause). I have been getting sick (effect) more often than usual.
If potential clients experience your hopelessness then why would they sign up to work with you?
Overworking, and not caring for your Golden Goose, will result in exhaustion and illness. In both cases, if you can see the link between the Cause and Effect that you have been ignoring you can take action and solve the problem.
Getting Clear on Cause and Effect so you can do the right things (and stop wasting effort on the others)
The next time you face a challenge in your business, instead of jumping to a Cause and Effect conclusion, take some extra time to really look at the challenge, and see if you can uncover a different cause than you first suspected:
- Write the challenge (the effect) down at the top of a piece of paper
- Write down the reason (the cause) you think you are experiencing this challenge.
- Write down as many other possible causes (even ones that feel crazy and unrelated) for this challenge that you can think of.
- Beside each possible cause write down any supporting evidence you have that this is the cause.
- Review all of your causes, and supporting evidence, and circle the one that now seems the most likely.
- Take action on solving the challenge with this new information.
Of course, having others help you analyze these things is an excellent way to go deeper, and ultimately build this into a CEO habit you return to consistently.
Taking the time to fully analyze the Cause and Effect of challenges in your business can shed new, and important light on what’s actually happening, and reduce the chances that you are acting on emotions or assumptions that may be leading you astray.
We spend a lot of time on the Wealthy Thought Leader campus detangling the above scenarios with business owners. This article contains all you need to make it real for yourself – as long as you try it!