Your business needs focal points to succeed

Thomas Schelling is a nobel prize winning economist who introduced the idea of focal points in 1960.

A focal point is a strategy that players are likely to naturally choose. Schelling’s original example was two strangers trying to meet in New York on a particular day, but not knowing a time or place. He suggested that underneath the main clock at Grand Central Station at mid-day would be a focal point and many people would successfully meet there even with almost no information.

This has applications in business too.

If you a own a business and employ people to run large parts of it for you, or if you are managing a large team then they will operate better if they have focal points.

These focal points will be clear strategic goals for the organization that allow everyone to make co-ordinated decisions. You want your people to be able to make the same decisions you would make but without your input on every decision. Focal points allow this to happen.

Today’s takeaway: Has your business got focal points and does everyone know what they are?

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