Annual income twenty pounds, annual expenditure nineteen, nineteen and sixpence, result happiness. Annual income twenty pounds, annual expenditure twenty pounds, ought and six, result misery.
We’re all familiar with Mr Micawber’s quote – and while inflation may have changed the numbers, the essential truth of Charles Dickens’ words can never be challenged. Translate them into business and they’re the reason you monitor your cash flow, the reason you check your KPIs and the reason you keep a lid on the expenses.
Yes, you can get away with spending that extra shilling in the short term, but annual expenditure of twenty pounds, ought and sixpence catches up with you in the end. ‘The mills of the Gods grind exceeding slow,’ Sextus Empiricus pointed out in the 3rd Century, ‘But they grind exceeding fine.’
Make no mistake, the result of that extra shilling of expenditure is misery. There is nothing that drags you down – mentally and physically – like staring at the cash flow every night, realising it just doesn’t add up.
So make sure you don’t spend that extra shilling, and you can forget about Wilkins Micawber, and be happy for the rest of your business career.
Or maybe not…
…Because I think there are other areas of business life where the ‘Micawber deficit’ can have a significant impact on your happiness. It’s not just the cash flow.
Let me turn for a moment from Micawber to Maslow – and his hierarchy of needs. Right at the top of the pyramid is self-actualization: as Maslow put it, “what a man can be, he must be.”
Nowhere is this more true than in business. And it takes me right back to last week’s post and the decision to ‘move to the next level.’ If you feel you can do it, you have to do it. If you don’t, you’ll end up frustrated and disappointed – and ultimately, a danger to your business.
We’ve had a recent innovation at TAB York. Before the meeting starts I ask every member for a ‘mark out of ten.’ It’s not quite ‘life, the universe and everything,’ but it is an indication of how they’re feeling – about life and business.
Supposing I were to take that one stage further – and ask the board members to rate their own performance over the last month: to give themselves a mark out of ten?
The actual mark wouldn’t matter: one man’s eight is another woman’s six. But in the context of this blog, one thing emphatically would matter. We all have minimum standards for ourselves. Whether that’s a six or an eight is immaterial. We all have a number that reflects the minimum level of performance that’s acceptable – that in Maslow’s terminology, confirms our self-actualisation.
To miss that number on a consistent basis – to regularly deliver less than your best – is a recipe for long-term unhappiness. As Mr Micawber might have said:
Monthly target eight, monthly average eight point one, result happiness. Monthly target eight, monthly average seven point nine, result misery.
There are few worse feelings than performing below the level you’re capable of: do that consistently, and it starts to eat into you. And suddenly ‘could have, should have, would have’ are rearing their ugly heads…
KPIs and the cash flow are crucial to the health of your business: but monitoring the KPI that’s your own performance is every bit as important.
Mention of KPIs takes me back to last week’s post: to cricket, a sport which is most emphatically measured in KPIs. Bluntly, I’m not sure whether to order a slice of humble pie or send an invoice…
You may recall that I was mildly critical of Joseph Edward Root. I wonder if he really wants to be one of the game’s greats or merely very, very good. Let’s see if he makes the decision [to move to the next level] over the next five days…
Joe Root – obviously having read the blog on the Friday morning – responded with 254 in the first innings and the highest aggregate runs ever scored by a batsman at Old Trafford.
So don’t ever tell me the blog doesn’t work! And if you’d like me to be mildly critical of your football team as the season approaches, simply send a large cheque to ‘Reid Sports Predictions.’ I’ll do the rest…
I’m now off on holiday for a week. The blog will be back, relaxed and refreshed on August 12th. And I’ll be back determined to deliver at least 8.1 to all my members through the rest of the year.