%202022%20(SMALL).png)
Co-authored by Gerard Kunkel and Chris Faw
“No” can be a stifling word – but it can also be a liberating word. The word "no" carries a dual nature that can either constrain or empower, depending on how it’s used and perceived. In today’s fast-paced product development landscape, leaders face the challenge of prioritizing work amidst a flood of technological options and intense competition. The ability to say "no" is crucial, especially when resources are limited, and the pressure to innovate is high.
Saying "no" allows leaders to create focus, ensuring that teams concentrate on a smaller set of critical features, which are executed with excellence. This focus helps prevent the common
pitfall of spreading efforts too thin, which often leads to mediocre products. Additionally, saying "no" helps manage risk by reducing complexity and minimizing the chances of delays, cost overruns, and quality issues.
Strategically, saying "no" reflects a commitment to long-term goals rather than short-term gains. It fosters better alignment within teams, leading to more efficient resource use and stronger organizational cohesion.
Stifling Aspect of "No":
When "no" is overused or applied without thoughtful consideration, it can become a stifling force. In this context, "no" might discourage creativity, innovation, or the exploration of new ideas. It can lead to a culture of fear or complacency, where team members hesitate to propose bold initiatives or think outside the box. If leaders habitually say "no" without offering constructive feedback or alternatives, it can create a negative atmosphere where potential breakthroughs are stifled, and growth is hampered.
Liberating Aspect of "No":
Conversely, when used judiciously and strategically, "no" can be incredibly liberating. It allows individuals and teams to focus on what truly matters, freeing them from the burden of unnecessary tasks, distractions, or features that don’t align with the core objectives. By saying "no" to certain requests or ideas, leaders can create space for their teams to excel in areas that have the most impact. It empowers people to prioritize effectively, manage their time better, and concentrate their efforts on delivering high-quality work.
When “No” means “Yes”:
Leaders should take great care in explaining what we are doing vs dwelling on what we are not doing. By carefully forgoing those projects that don’t create immediate or long-lasting value, we must articulate what we will do instead. Catalogue and celebrate the “yes”. Teams need a common manageable vision and mountain to climb. By saying “no” we are creating the ability to say “yes” . “Yes” to focus and create the bandwidth needed to concentrate on those few, but vital priorities. Formulate, describe, publish and measure the progress of “yes”.
Moreover, a well-considered "no" can clarify vision and direction, helping teams avoid the pitfalls of spreading themselves too thin. It encourages thoughtful decision-making and aligns everyone toward shared goals, fostering a more focused, productive, and innovative work environment.
“No!” to hot dogs:
What’s more American than hamburgers and hot dogs? Founded in 1940, McDonalds is the number one fast food franchise in America but take a look at the menu and you will see no hotdogs. While McDonalds has actually experimented with the “McHotdog”, it has yet to be deployed on a wide scale basis. There has been a consistent “no- to hotdogs” indicating McDonalds is just fine spending their time and resources improving their advertising, store locations, staffing, pricing, supply chain management and existing menu items to drive stockholder value. Ray Kroc famously said, “there is no telling what’s inside that hot dog skin”. Despite an underground fanbase and perhaps some pressure from franchisee owners, the McHotdog remains on the sidelines. The “no” has kept the operation more streamlined while keeping the consumer focused on the existing, successful core signature items already available on the menu. Sure, if they added hotdogs, they would see significant sales, but would those sales just be moving around the dollars from existing products while creating more operational hassle? Further, think of marketing budget required to brand and educate the consumer and make the wiener a winner. This “no” requires organizational discipline but has created a dependable, repeatable experience that seems to have worked well for the number one fast food purveyor in the country.
“Yes!” to hot dogs!
Costco is a great example of when saying “yes” to maintaining a bargain price (even loss-leading) is the right business decision.
Since the mid-1980’s Costco has offered a hot dog and soda combo for $1.50. And even into 2024 Costco no plans to raise the price of that iconic $1.50 hot dog and soda combo, despite inflation. Speculation of a price increase arose after a former CFO hinted the price might not be safe, but the current CFO confirmed the price will remain at the current level. This low price food combo is a key part of Costco's pricing strategy – and it has achieved a widely known cult status. You see, they are selling ~200 million combos annually. Jamie Loftus, author of Raw Dog, says another part of the combo's appeal is an almost-mythical anecdote involving its brush with price inflation, in which then-CEO Craig Jelinek went to his predecessor, Costco co-founder James Sinegal, to broach the topic of increasing the hot dog combo price. According to legend, as well as Jelinek himself, as shared by Sinegal, there was no room for discussion. “He said, ‘If you raise the effing hot dog, I will kill you,’” Jelinek recalled in a 2018 interview with 425 Business.
In summary, while "no" can sometimes limit possibilities, it can also be a powerful tool for setting boundaries, maintaining focus, and ultimately achieving greater success. The key lies in understanding when and how to use it.
Key Takeaways:
Focus: Saying "no" allows teams to concentrate on what truly matters.
Risk Management: It reduces complexity and potential points of failure.
Strategic Discipline: Leaders demonstrate a commitment to long-term success.
Alignment: Clear priorities lead to better teamwork and resource allocation.
Comments