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	<title>VCPlan - The Path to Success &#187; company culture</title>
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	<description>How investors qualify entrepreneurs -- How entrepreneurs attract investors.</description>
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		<title>Learn from your mistakes</title>
		<link>http://vcplan.com/archives/268/admin/14-point-list/execution/learn-from-your-mistakes</link>
		<comments>http://vcplan.com/archives/268/admin/14-point-list/execution/learn-from-your-mistakes#comments</comments>
		<pubDate>Fri, 08 May 2009 12:00:50 +0000</pubDate>
		<dc:creator>Steve</dc:creator>
				<category><![CDATA[Customers]]></category>
		<category><![CDATA[Execution]]></category>
		<category><![CDATA[Plan]]></category>
		<category><![CDATA[company culture]]></category>
		<category><![CDATA[long term solution]]></category>
		<category><![CDATA[premium prices]]></category>
		<category><![CDATA[texas instruments]]></category>

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		<description><![CDATA[The hardest thing is NOT admitting a mistake. The hardest thing is learning from a mistake and improving.
Companies make mistakes all the time.  What gets all the press is how they dodge admitting it is a mistake. Either they hope it goes away or they come out and admit they were wrong and are trying [...]]]></description>
			<content:encoded><![CDATA[<p class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-size: small; font-family: Calibri;">The hardest thing is NOT admitting a mistake. The hardest thing is learning from a mistake and improving.</span></p>
<p class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-size: small;"><span style="font-family: Calibri;">Companies make mistakes all the time.<span style="mso-spacerun: yes;">  </span>What gets all the press is how they dodge admitting it is a mistake. Either they hope it goes away or they come out and admit they were wrong and are trying to improve.<span style="mso-spacerun: yes;">  </span>Most recently you see AIG not admitting how they handled the bonuses being a mistake.<span style="mso-spacerun: yes;">  </span>After congressional hearings and a lot of press uproar it has pretty much died down.<span style="mso-spacerun: yes;">   </span></span></span></p>
<p class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-size: small; font-family: Calibri;">When I worked for Texas Instruments, they had a process for learning from mistakes.<span style="mso-spacerun: yes;">  </span>Essentially, we would first discuss the problem and the short term solution. Then, we would look to see if it was systemic and if a long term solution was needed. We would implement that long term solution, and finally, we would come back later and determine if it was corrected.</span></p>
<p class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-size: small; font-family: Calibri;">Unfortunately a lot of companies do not get beyond step 1: discuss the problem.<span style="mso-spacerun: yes;">  </span>The put in a bandaid fix (maybe) and then say that they cannot fix it because either its too big, not that important, or its our culture and so you should give up.</span></p>
<p class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-size: small; font-family: Calibri;">Those companies eventually fail.</span></p>
<p class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-size: small; font-family: Calibri;">TI is going to be around for a while.<span style="mso-spacerun: yes;">  </span>Once, a customer told me that the reason they bought from TI and paid premium prices (some of the highest in the business) was that we were consistently <span style="mso-spacerun: yes;"> </span>on time with the quality they needed.</span></p>
<p class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-size: small; font-family: Calibri;">Next time someone does not want to fix it in the long term ask them if it keeping customers who pay good prices is big enough, important enough, or part of the company culture.</span></p>



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