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From Cutting Tool Engineering

When not to listen: People & Companies

Repeat work is great, but shops have to guard against the comfortable complacency that such work can generate at the expense of diversifying its customer base. Said diversification is essential to a shop's growth.

May 15, 2018By Keith Jennings

All shops love repeat work. Sometimes too much, and therein lies a problem.

Many shop managers ask, “Why spend development hours on new projects when the gravy stuff continues to come in?” Answer: Because diversification of a shop’s customer base is essential to growth. Complacency and comfort can be dangerous to any business if allowed to permeate.

I’ve certainly read my share of stories about U.S. companies that were bought out, relocated or merged. Then the new owner took the company’s expertise and improvements and passed them on to a new supplier in Asia.

As a result of these new realities, it’s essential that you pursue new accounts so your customer base becomes as diversified as possible.

On the other hand, what happens if your lead engineer or shop manager says “no” to some of that diversification? What if he or she doesn’t recommend taking a job that you’ve evaluated and determined may be worthwhile? After all, it’s a given that the engineer’s or manager’s input is valuable and carries a lot of weight.

There are times, however, when your instincts tell you to ignore feedback and take a different path. Sometimes it’s necessary to take some risk—to “go it alone”—whether it’s about recruiting new business or some other aspect of running your shop.

Making the wrong decision now and then is inevitable and may lead you to question your judgment. Don’t. Even if a situation doesn’t work out, it’s not indicative of failure on your part. It’s a sign of leadership. Consistent failure isn’t leadership, but deciding to go against the advice of others can pay off.

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