Challenging Popular Thinking

I was having breakfast with my family and we were discussing a new proposal which I have been tasked to handle. My task was to find a solution to the problem my company now faces. The problem is not new and several companies have implemented their solutions for umpteen years.

When my boss met my team at the discussion table, he revealed the issue and wanted a plan of action from the team. We could all identify with the issue because we were aware of the concept and the current practices in other global companies. We were given three weeks to develop our proposed solution and plan of action.

The issue is not new. My dad and sister said that they were aware of how companies dealt with the issue. However, they argued that it can lead to an increased work load as a result of increased administrative procedures. I have, however, arrived at a different solution without the problems! My sister and dad calls it a modified solution to the problem and it was nothing new! See popular thinking is New = dramatic change.

When the issue was first laid on my desk, the first thing I did was to define the issue, understand its objectives and the existing arguments for the proposal. I challenged its assumptions and found them to be invalid (which means I think it is a darn lousy proposal). If the proposal were not accepted, I can proceed with the current system (don’t change for the sake of changing!). However, should the proposal be adopted, was I able to find a different option (compared to other existing solutions) in achieving the same result but without its set of limitations?

I could have engaged in popular thinking and safely assumed that the existing practices in other companies are the best. If everyone is doing something in a specific manner, it must be a good idea, right? Not necessarily so. A good example is equity investment. Punters are keen on buying equities with numerous buy calls. When the market is riding high, they start investing their capital in those equities. What they don’t realise is that those who have made money are those who have invested and you only gain when you sell! Therefore, it pays to adopt contrarian thinking. All things being equal, buy the equity when everyone thinks it is heading south.

The point is there is a huge difference between acceptance and intelligence. I did not want to blindly follow others and only to find out that I have not thought about what is best (that is why it is important to do financial research and not just count the numbers of “Buy” calls). In challenging popular thinking, I get resistance and objections. Some were uncomfortable with my proposal because it is not significantly different from my company’s existing practice. See what they don’t realise is that that is the beauty of it. But I was not afraid of them. Let me put it this way, you won’t be as wrong as they think you are now and in future you won’t be as right at they think you are too. Therefore, why not be better than you thought you could be…=)

I evaluated the problem, read and listened to the opinions and arguments of others, then worked on two options. One of the options is similar to that of existing practices of other companies (popular thinking) and the other was a modification of my company’s existing practice. Both solutions will achieve similar results. But it will be more costly if one were to adopt the option similar to that of other global companies. In other words, it reduces the company’s profit margin!

When my boss saw my plan of action to the proposal, he loved it!!! "Very fast and analytical!" he said. We did a preliminary test on its practicality and there were no objections to the proposal. However, there was feedback that the existing practice should be continued as it was better than the proposed change. I was right on both counts!

In a nutshell, what is popular is normal and therefore yields average results. What I needed was an effective solution that specifically addresses my issue. A solution done in the same way as everyone else is not going against popular thinking. But a solution done in a different way is challenging popular thinking and it achieves incredible results. To the naysayers out there (including my dad and sister), I am still proud of what I achieved because I chose a different path from you guys.

Update:
To those who are interested. My dad finally agreed that my proposed plan of action is excellent. The key is to challenge the assumptions and deal with the limitations of existing practices.