E-M8, Business, Innovation, Management

E-M8 Entrepreneurial Management for Eternal Mission

Discovering purpose through engaging in business, exploring the disciplines required for purposeful business.

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Paranoia is bad for business

February 14th, 2009 · No Comments

Business is fundamentally about relationships. If there is no relationship, however shallow, there is no transaction and transactions are at the root of the business. Paranoia makes relationships costly and thus hinders business. But on the other hand, trust that is undeserved is just as bad. In the end of the day the two extremes feed on each other. Every time someone trusts too much they are likely to get burned and every time they do, they are likely to become more paranoid.

The solution is to base the trust on something solid, on well spelled out contracts, on small incremental steps that limit exposure for everyone, on a track record of past performance and referrals of others. There is nothing more trust building than putting it in writing and putting a price on not delivering on each side of the bargain.

So, lack of paranoia is not blind trust, rather, an expectation that since the relationship creates value for everyone, it is in the best interests of all parties to not screw it up. That and love… After all, occasionally we will screw it up, or someone will want to grab for a bigger slice of the pie and at that point only love and forgiveness can keep us from becoming bitter and paranoid people who are afraid to engage in business.

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