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Death Spiral

Category : Habits, Lessons Learned

If you’ve ever been to an air show, you’ve probably seen a pilot put an old airplane into what appears to be an out of control tumble towards the ground, only to save the plane and pull out of the spin at the last moment. It’s really a cool stunt, and it’s really dangerous.

But sometimes they don’t make it.

These death spirals can pop up in other areas as well, and no one but a stunt pilot would enter into them on purpose. In business, we can be doing good work, but market changes or internal inefficiencies multiply, and before we know it we’re spinning out of control. Most businesses will just keep doing what they’re doing, hoping to do it better enough that they survive. Most don’t.

It happens in our relationships as well. We wake up one day and poof…who is that person we’re married to or in business with? Remind me again why we are friends? How did I end up hating my job? All too often we only notice that we’re in a death spiral once it’s too late.

What do we do about the dreaded death spiral?

1 – Learn to Recognize It
How do we know when we’re in a death spiral? It’s hard, but there are signs. Look for complacency or unjustified optimism. Look for silent arguments or issues swept under the table. If there’s an elephant in the room stinking up the place (trust me, both real and metaphorical elephants stink), and no one is saying anything about it, you are already there.

2 – Recovering from the Death Spiral
There is only one thing that can save you (beyond divine intervention or accident, and while I’d hope for the former, I wouldn’t expect the either). That one thing will depend on your exact situation and environment and can take many forms. The one thing is drastic and immediate change.

You have to stay calm and assess the situation. But you have to act, and act quickly. The longer you spiral out of control, the more difficult it will be to recover.

The status quo has got you where you are. Sticking to the same route will only get you killed (only figuratively, I hope).

Small changes may only mask the problem or give the illusion of recovery. You need to zig when everyone else zags.

John G. Miller tells a story in his book QBQ: The Question Behind the Question, about a father flying with his daughter. When the engine of their small plane cuts out, he smoothly tells her that something is wrong and he has to fly the plane differently. Had he continued flying as if he had an engine when he didn’t, he wouldn’t have been able to tell the story.

Drastic and immediate change in response to the circumstances, even if all you have is a Hail Mary pass.

3 – No Guarantees
By the time you realize you’re in a death spiral, it may be too late. I’m not saying that you shouldn’t try, but you should be realistic. Even if you do all the right things, you may not recover.

If I fall out of an airplane without a parachute, I’m going to do two things: pray and flap my arms. Flapping my arms is not a sign of lack of faith…it’s meeting God halfway. It may or may not help, but I’m going down fighting and I’ll have a great story to tell either in the hospital or in Heaven.

Can the Death Spiral Be Avoided?
Probably not always. But if you keep your eyes on where you are going and where you are, you’ll see when you get off course. Constant minor adjustments will keep you on the path. Fail to pay attention, and you veer off course. And pay full attention, and external forces can still knock you off course. In your life, career, business or marriage…be prepared and be alert.

What do you think?

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The $224,000 Speeding Ticket

Category : Lessons Learned

Imagine being just 0.11 mph over the speed limit and it ends up costing you $244,000. That’s exactly what happened in Indianapolis today.

No, it wasn’t on the highway…it was on the speedway. The Indianapolis Motor Speedway. And the driver was not happy about it at all.

Juan Pablo Montoya, former Indy 500 winner was leading the Brickyard 400 when he was caught speeding on pit road. His penalty cost him the race, and the extra $244,000 he would have earned had he won. Read about it here.

So what’s the lesson here and how does it apply to your life and mine?

1. Even in the go fast world of auto racing, there are rules that must be followed. If you don’t, it will cost you.

On the race track the cars can go as fast as the drivers and teams can make them go (within the other rules for engines, etc.). At speeds exceeding 200 mph, you wouldn’t think 0.11 would make that be a difference. But on pit road, safety matters, and going too fast endangers the crews and race officials. Sorry Juan…the computers got you on this one.

2. Push the limits, but don’t cross a line unless you’re willing to face the consequences.

At Indy, NASCAR mandates that the pit road speed limit is 55 mph, but gives an additional 5 mph buffer zone to account for variables like avoiding other cars and whatnot. Juan, like all drivers, was pushing the limit as hard as possible, because it’s much easier to pass cars with a fast pit stop than it is on an old, flat race track.

Juan was leading the race with a five second lead…huge in a sport where tens or even hundredths of a second matter. In pushing so hard to maximize his time, he crossed the line. It cost him the race.

We all need margin in our lives. Race car drivers are supposed to live on the edge–they can’t do their jobs properly unless they do so. But the smart ones know when to ride and when to race!

We are faced with choices everyday. Choices that approach lines in our lives. Choices to lie, steal or cheat. Be careful how close you put yourself to those lines, and be prepared for what happens should a “gust of wind” force you onto the other side.

3) Do things differently when you’re the leader.

Juan had a five second lead. He had margin, room to breathe. There was no need to push the limits. It was a hefty price. But he’s not thinking about the money as he tries to go to sleep tonight. The money is nice, but racers race to win. Winning or losing that race meant more to him than the paycheck waiting for him.

Breathe a little as the leader. Don’t get complacent or cocky, but lead with confidence because you have the advantage of your margin. Imagine driving your car down a narrow, winding country road. It’s tight, but it’s fun whipping through those sweeping corners. Now trade your car for a moving truck…a big, wide, heavy, stiff moving truck. The road is the same, but your margin for error has been reduced.

4) Monday starts a new week.

As much as we sometimes hate Monday’s, they are a chance for a fresh start. Juan Montoya can feel bad about losing the race for a little while, but there’s another race on the schedule that he has to prepare for. If he can’t let it go and learn the lessons from his mistake, he won’t stand much of a chance at winning next weekend.

You have to start over from your failures too. You have to pick yourself up when you get knocked down. Can you do that? Can you CHOOSE to do that?

Hope you have a great Monday!

Any thoughts? Leave a comment!