As an executive consultant and advisor, I help you understand your business in new, powerful ways, solve problems that span business and personal, and serve as an accountability partner. You set the agenda, I help you achieve it. Past clients have said that when we work together, they find themselves with breakthrough ideas that solve even long-standing problems.
We understand your business in new, powerful ways
As you become more senior in your business, you must change your thinking. You must expand your thinking across functions, and be able to link the larger company strategy to your organization’s goals and actions. I help you understand what drives your business strategy and how you can craft an organization to implement that strategy. (And if you don’t have one, I can help you create one!) We cover both breadth and depth of your business.
An entrepreneur had created a niche retail business and wanted to grow. Together we examined his market. We identified what they purchased, how often, and which products were (and weren’t!) profitable. Based on that information, he decided the most sensible course of action would be to dramatically expand catalog and internet sales. He then transitioned to a purely virtual business.
We solve problems that span business and personal
Few decisions in business are purely rational, yet culturally, the rational discussions are the only ones we have at our job. We may not discuss them, but the emotional issues often loom large in business. As a smart, business-savvy third-party with no vested interest, I help you cut through the differing agendas so you have the clarity to choose a course of action.
A CEO’s co-founder, a high-school best friend, was not pulling his weight in the company. The CEO was paralyzed by indecision, and was searching frantically for a way to engage his partner. Together, we determined that the real issue was the friendship, and the emotions were keeping the CEO stuck in indecision. Once we factored this into our decision-making, the CEO was able to lay out the issues with his co-founder and preserve the friendship while negotiating a clean separation.
We provide accountability and action.
With regular meetings, we design an action agenda to reach your goals and then hold you accountable for taking action. When you hit roadblocks, I am your confidential sounding board and brainstorming partner to help you get through those roadblocks.
A project manager in a growing firm wanted to become a member of the executive team at her company. Together we identified the skills she would need to develop, the people she would need to form relationships with, and the projects that would showcase her growing executive abilities. We met regularly to keep her integrating her long-term goals into her daily work life. Two years later, she had achieved her goal.
If you want to work with a coach who can help you build powerful results in your life and business, contact Stever using the Contact link.
Business, culture, politics
A friend on Facebook posted an article about New Jersey outlawing Tesla’s direct-to-consumer car sales. My friend was decrying how Gov. Christie is being anti-free-market. And I agree 100%.
From what I’ve been able to see, it’s pretty clear that the big conservative political donors hate free markets. What they love is whatever give them, personally, the ability to get more wealth. By “free market” they mean “don’t do anything that interferes with my personal ability to make money.” For example, the Koch brothers compete by using their money to alter laws so they win. They don’t compete by being better businessmen.
When it comes to competition, they hate it and undermine it at every opportunity, unless they’re the winner.
When it comes to level playing fields (supposedly the bedrock of markets), they hate it.
When it comes to producing the best product at the lowest cost, they hate it.
When it comes to contributing to the infrastructure they use freely that was funded by the public, they hate it.
Business People Should Loathe Competition
It’s a real education to go to business school and ask: how much of this education is devoted to finding ways to gain a market advantage without actually having to do a better job? The answer: most of it. It’s called “business strategy.” We teach our students how to be anti-competitive and anti-free-market, all in the name of free markets.
This works, however. It works because with the right playing field, pitting anti-free-market forces against each other results in more efficient companies through market selection of companies that are fundamentally better than other companies. This produces better ultimate outcomes for the consumers and society who created the markets to begin with.
But never miss the critical point: free markets work because the players are all trying to gain market advantage by doing a better job than each other. The players themselves are not striving to have a fair market, they’re striving to win and eliminate the competition (and thus the market).
It’s the job of government to make sure the playing field is level enough to keep enough market participants that the market continues to function. Players all want monopoly, government wants thriving market participation.
Mr. Christie’s error is that he’s acting as a businessman. That’s not his job. His job is to take care of all his constituents overall, not just the business ones.
Business, entrepreneurship
As ventures grow and develop, the challenges they present change. Often change is sudden rather than gradual. These sudden changes require a shift in the way the company and/or the top managers do business. These are times when coaching can be most valuable.
The one-room shop. In a one-room company, even if the room is a 60-person room, communication is informal and universal. Roles can be amorphous, with anyone pitching in to help with whatever needs doing.
The first hire. With your first employee, you become a manager. Decisions must now be made taking the employee into account. Confidentiality and access to information get raised as issues. Delegation, clear communication, evaluating, and motivating your employee become necessary skills.
The first firing. It happens. And it isn’t pleasant. It also sends a strong message to everyone who is left. With the first firing, everyone will realize—really realize—that you are the boss. Handling the dismissal, handling your reactions to the dismissal, and managing perceptions of the remaining employees become the challenges.
The first customer. The market is now aware of you. You have your first chance to collect real customer feedback. The length and cost of the sales cycle becomes apparent. Your cash flow requirements become more knowable, and the strategy/tactics need to respond. And for the first time, you have to deliver on your promises.
The first lost sale. You have to grapple with whether your product should be changed to meet the market, or whether you just had a bad fit between your product and that one prospect. You may find yourself dealing with how to react appropriately, and how not to take this personally.
The two-room shop. Communication that happened through proximity and casual conversation suddenly stops happening. For the first time, you must explicitly identify communication paths and determine how they will operate. Things that have always worked in the past may not work any longer. You’ll grapple with identifying solutions and separating accountability of the system from accountability of the people.
The first fight. There comes a time when, despite the best of intentions, the founders disagree. Really disagree. This is a time to examine the relationship, and make sure you have a structure for working through conflict.
Money runs out. When the money almost runs out, the venture capitalists and other funding sources may hold your feet to the fire, just because they can. You will encounter issues around negotiating, personal balance, and separating your identity from the business to create as objective an action plan as possible.
Cash flow positive. Survival no longer depends on every cash decision! You can invest surplus in longer term projects. Cultures which have been compromised to save money now have the option of improving their business practices. “Spend as little as possible” was your old imperative. Now, you need a way to decide how to use the surplus cash. Culturally, you have an opportunity to increase integrity in how business is conducted.
Once you have cash, how you pick and choose opportunities to pursue becomes less dependent on pleasing outsiders. You are self-funding and have the option of slowing growth to avoid the need for new outside capital.
The Chaos Point. When the company gets too big for one person to keep on top of everything, chaos can ensue. Organization structure becomes necessary, and managers must shift from getting things done to creating an organization in which others can get things done. Delegation, willingness to give up control, learning to guide and create culture, setting compensation systems, building meaningful feedback systems, and hiring all become critical capabilities.
Outside money. With outside money, you are truly accountable to others. Board meetings take preparation, and the outside money may bring restrictions and new constraints. The personal challenges include balancing your own vision and plans with those of the outsiders. Changes in strategic direction may become dependent on outside approval.
The second Chaos Point. Somewhere between 70 and 100 employees, real business systems become necessary. The numbers just get too big: too many job applicants in the pipeline, too many projects to track, too many purchasing requests, etc. Few employees have the business process analysis skills to put systems in place. Those few who have the skills become overwhelmed as everything important is given to them: “Just this once? You’re the only person who gets things done around here.” Building business systems and training underlings in building systems becomes imperative.
Multiple product lines. Once you move to multiple product lines, issues start to arise around your company’s identity: what do you stand for? Who do you serve? If one line is more profitable than the other, are the managers or salespeople paid differently? Are you a single brand? Multiple brands? Issues of focus, resource allocation, balancing the culture, and accountability become important.
Acquisition. When you’re acquired, the challenges revolve around keeping good people, merging your identity, culture, and product lines with your new parent, and defining roles and career paths that work in the new entity.
IPO: the finish line? As rumors of an IPO begin to spread, comparisons start. Who has how much? Whose options are worth what? Will we be as rich as our friends at e-commerce.com? Suddenly, you are legally required to keep a lot confidential from your employees. Issues of fairness, ethics, trust, and reporting requirements arise within the company. The issues are huge: six-figure tax planning, psychological preparations to become rich (it’s not as easy a transition as most people think), learning to make decisions from a large asset base, examining how priorities change, understanding how to manage friends and family, dealing with the public speaking and stress of a road show, and keeping the company together while all this is happening.
Life goes on…publicly. Whoops. The company iPod and you just realized an IPO is just the beginning, not the end. Early employees, who hold much of the company’s intelligence in their heads, become rich enough to leave. The motivation of “someday we’ll be public” is no longer available. Outside pressure to “manage for quarterly results” begins. Preserving the knowledge and skill base of the company while achieving the forecast numbers become two of the biggest challenges. On a personal level, growth opportunities include learning to manage increased analyst scrutiny and formulating your next set of goals and aspirations.
An executive coach can help during many of the “moments of truth.” When growth is happening so quickly, employees (including founders!) may not have the time to grow into their roles; their roles are changing too fast, and they’re too busy building the business. When roles shift, or unquestioned assumptions and rules suddenly stop working, an executive or advisor can help you through what’s needed structurally, motivationally, or personally-to bring things back on track.
Focus, Productivity
The Big Picture
A client asked me to facilitate her senior team’s big picture, strategic planning retreat. It was a $200 million company. They listed important issues on the whiteboard. Item #1? Replace the refrigerated water fountain with a ‘green’ ground-cooled fountain, to show commitment to the environment. Worthwhile? Maybe. But… strategy? big picture? Not even remotely.
We do this in our daily lives, too. A friend tied himself up in court for a year to win a few hundred dollars damages from a fender bender. Was he right? Sure. Was that a good use of his time? No way.
The Big Picture Guides Decisions
“The big picture” matters because it tells you how to spend your time. It guides decision making. If you’re starting a business to build a world-changing empire, that’s one thing. Creating a comfortable business that runs on four hours’ effort a day so you can have free time for friends and family is something different. Even when doing the same activity—building a business—a different big picture leads you to make different decisions in the day-to-day.
If you lose the big picture, you can go very far afield. I once had a client who had 60 employees. The company was bringing in a couple million a year, but it all went to salary for the employees. My client was sleeping on friends’ couches because he wasn’t paying himself a salary. He was living the “build an empire” big picture when what he wanted was a comfortable life. Linking his big picture and his day-to-day transformed his life. By closing his company and becoming a sole practitioner, his income and lifestyle became everything he wanted.
The big picture also gives you important information. If someone makes a bad decision, how you judge it depends on the big picture. If a money manager loses money after representing themselves as a knowledgable professional who manages risk, that mistake may be very bad, indeed. But if someone is carefully investing calculated amounts with the goal of teaching themselves investing, that same loss may be a very good thing. It’s a chance to learn that will help them make good decisions later. A big picture of “I’m guaranteeing your security” versus “I’m learning my craft” changes how we treat the outcomes.
Revisit Your Own Big Picture
Are you paying enough attention to the big pictures in your life? Next time you make a decision or form a judgment, stop and pause. Consider the big picture. If you’re making a decision, what is the reason for making that particular decision? Is there a big picture point of view that will make the decision easier or more obvious? “Should I take out a loan to buy this car?” It’s easy to believe this is a real decision … until you consider that you take the subway to work, you have no need to drive, and you just like the mental image of how you’d look in a cool, sporty convertible. At least in my life, a big picture of “I want to be cool” versus “I need a car to survive in my daily life” makes the decision obvious: no loan, on any terms.
When you make a snap judgment, it’s also a good time to revisit the big picture. “She’s a poor employee because she missed three days of work last week.” If your big picture is “I want compliant workers,” you’d be tempted to give her a pink slip. But if your big picture is “I want skilled employees who do a great job,” you might dig deeper to find out she’s completing her masters degree, coping with finals, and her extra skills are already showing up in the form of high-quality work.
Spend time on a regular basis to revisit your big picture. You may find it guides you towards not only towards a better decision, but towards a wise decision as well.
Business, culture
I’ve recently noticed that many entrepreneurs hire a “marketing person” and then end up with someone who doesn’t do what they expect. Sometimes it’s because they didn’t realize what “marketing” means. Other times, it’s because the person they hired didn’t know what marketing means. Here is a quick guide to understanding the difference between professions that are distinct, separate fields, but get confused, because the titles are so often misused:
Marketer. A marketer decides what market a product will be sold to, how the product will be described to make it stand out from its competitors (called “positioning”), and how it will be priced. A market is a broad set of people who might want to buy the product that can be reached by the company. “Every adult over the age of 25” is not a market, because there’s no way to reach every adult over the age of 25. “Single women between 18 and 35” is a better market because there are magazines, TV shows, web sites, and other venues where members of that group hang out. Those places—often called “channels”—are how a company can reach that market.
A marketer also chooses the message to send to a market. Whether to say “We’re the lowest cost pony rental service in town” or “We have the only purple pony east of the Mississippi” is a marketing decision. The first message will appeal to members of the market who care about price. The second message will appeal to customers who care about … purple.
Salesperson. Marketers deal with defining the product. Once the market is identified, the salespeople actually go out and convince people to buy. The marketer decides, “We’re selling private jet memberships to corporate CEOs.” The salesperson drives out to the country club, finds a CEO, and says, “Would you like to buy a private jet membership?”
Note: the “junk mail” and “spam” professions are often called “direct marketing.” Those professions are rarely marketing; what they are is sales-at-a-distance. Very few people I’ve met who do direct marketing spend much time defining their market and competitive strategy. They spend their time selling.
Copywriter. A copywriter writes the text that will appear on a web site or in an advertisement. Text must accurately represent what makes a product unique and appealing to its target market. Knowing takes a marketing perspective. If it’s ad copy, it must also persuade. That’s a sales perspective. The text must also be clear and well-written. That’s a writing skill. You’ll do best with a copy writer who has good writing skill, and the perspective appropriate to the piece being written. A website “about us” page may require a marketing perspective, while a product sales landing page might require a sales perspective. Don’t assume the same person can write both kinds of copy. Also, don’t assume that a good salesperson or marketer can write good copy. They’re separate skills.
Designer. A designer makes things look good, and creates a certain feel using visual design. The designer will choose your website layout, your fonts, and so on. Designers need to know enough about your site to create the mood you want. That mood, however, is usually decided by the marketers, and it should send the right signals to the target market. Marketing would decide “We want a cartoony, happy feeling because we believe that will appeal to single women between 18 and 35” or they would decide “We want a professional, elegant feel to appeal to single women between 18 and 35.” The graphic designer would then create a look, feel, illustrations, etc. to make that impression.
These are different skills, and they often require different people to get them right. But when you get the right marketing, powerful salespeople, killer copy, and a great design, you’ll build a much stronger, more powerful business than you would otherwise.
Business, entrepreneurship, strategy
It sounds easy: my client wanted to think more strategically. isn’t that the hot buzzword? “Strategic thinking.” Oooh! Sexy. There’s only one problem: what, exactly, does it mean?
You’d think we would know. But I’ve seen executive teams discuss in all seriousness what the lever does on a piece of machinery. That’s about as non-strategic as it gets. In fact, a general rule is that if you read it in a manual, it’s quite likely not strategic.
What is strategic is when you’re doing something that changes the structure of the business in some basic way. Paint a machine lever red? Not strategic. Decide to outsource manufacturing to China? Strategic, because it changes who you hire, how you manage them, and what they’re capable of achieving. You punt your machines and take on eager young managers who speak Mandarin.
This is the first kind of strategic impact: changing organization structure. This includes outsourcing, selecting vendors (since what you can do now becomes expanded and limited by what they can do), mergers and acquisitions, changing the org chart, going public, and hiring and firing people who will in turn make strategic decisions.
Or consider an entrepreneurial client who insists on answering the phones himself. He’s done it since founding the business 20 years ago and prides himself on knowing everything that’s going on. But now that the company gets a hundred phone calls a day, he decides to install an automated attendant, freeing himself to do other things. This is an example of “business process reengineering,” which is a fancy way of saying “doing things differently.” Changing how a business does something is strategic because different hows give the business different capabilities. If your product is produced on a machine that turns out 100 widgets a day, then you simply can’t bid on a job that wants 500 units by tomorrow. If you can rearrange your factory processes and produce 5,000 units a day, whole new markets open up.
Speaking of markets, choosing the markets to compete in, what to sell, and how to price are all strategic decisions. After all, those decisions determine who you’ll hire, how you set up your org structure, and how you’ll deliver your product or service.
The American Express web site lists 20+ cards. I called a friend in Amex’s strategy group to help me understand the difference between the “Platinum Business” and the “Business Platinum” cards. He said, “I work in strategy. I don’t really know our product lines.” A strategy group that doesn’t know the products? I don’t know what they do, but it seems awfully dangerous to be making organization structure and process decisions without even knowing what your customers are buying.
Everything we’ve discussed so far is cross-functional; they can involve changes that affect many parts of a business. Though it’s possible to make strategic decisions in one area of a company without involving other areas, that’s a dangerous game. If our marketing department starts competing in a new market that cares about delivery time, but doesn’t tell our shipping folks, they can set the company up for failure.
Don’t make the same mistake. Learn when your decisions are strategic.
That means decisions about org structure, process–the HOW–, cross-functional decisions, and the marketing decisions of what to sell and who to sell them to.
If you want to learn more about strategy, my very favorite book is Co-opetition by Adam Brandenburger and Barry Nalebuff. I also liked Geoff Moore’s “Crossing the Chasm.” Both books are circa mid-90s. There are 83,416 other business books that will teach you some kind of strategic thinking. I’m not sure the specific strategic approach is very important (though consulting firms will make big bucks telling you otherwise); to me, the value comes from learning to think at a strategic level consistently and integrate strategic thinking into your daily running of the business.
Get-it-Done Guy Resources, resources
Stuart Diamond, best-selling author of Getting More, shares his insights on negotiation. Stuart Diamond is unbelievably impressive. He has taught and advised on negotiation and cultural diversity to corporate and government leaders in more than 40 countries. He is currently a professor from practice at the Wharton School of Business. For more than 90% of the semesters over the past 13 years his negotiation course has been the most popular in the school based on the course auction, and he has won multiple teaching awards. He has taught negotiation at Harvard Law School, from which he holds a law degree and is a former Associate Director of the Harvard Negotiation Project. He has directed a negotiation consulting firm in Cambridge, MA. He holds a BA from Rutgers.
Mr. Diamond is president of Global Strategy Group, which advises companies and governments on negotiating foreign investment and devising strategies, structures and marketing to compete effectively on an international scale: essentially the skills of planning and persuasion. He’s been a successful entrepreneur, negotiated the sales of companies, author, and lawyer. You can read his full biography here.
The Podcast and Downloadable MP3
Podcast: Play in new window | Download
Featured, Misc, Productivity
Everyone loves the concept of “Inbox Zero.” The idea is easy: make it a priority to empty your email inbox every day. It feels great. I agree that it feels great. One member of the Get-it-Done Guy community said it’s how he knows he has control over his email.
I respectfully disagree that inbox zero means you have control over your email. You don’t control the content, the order, or the volume of email that arrives. Inbox Zero is basically a reactive strategy—it says that your inbox is so high priority that you should attend to everything in it every day. Since you don’t control the content, that means shifting your brain through several topics just to scan your inbox in a single session. The order you have to think about those topics is determined by the order messages arrive, not by the importance or relevance of the topic to you. Brains don’t do well with rapid, random context switching. You’re using up brainpower just in the process of triaging the whole inbox. This isn’t just a philosophical issues. In “The Power of Full Engagement” by Tony Schwartz cites research that we only have a certain amount of mental capacity between each sleep cycle. Your brain doesn’t care what you use it on. You can use it up triaging your inbox just as easily as you can use it actually doing good, high-quality work. When I’ve paid close attention, I’ve noticed that email saps my actual productivity.
The amount of your email is determined by others, and the amount of time it takes to scan your inbox is proportional to the amount of email they send. Unless you’re in a completely reactive job and the only people who email you are people whose agenda aligns with yours, taking your time to sort through their email can waste a lot of time. I get about 100 emails a day. If I spent as much as 30 seconds on each one, that would take up the equivalent of a month and a half a year. There’s simply no way that’s a productive use of time in aggregate.
I believe that an empty inbox just means you’ve ceded control of your thinking and priorities to everyone who emails you. They control the volume, order, and substance of your attention for the time you’re processing your email. It *feels good* to have an empty inbox, but it also feels good to gorge on Oreo ice cream cake. That doesn’t mean that Oreo ice cream cake is good for you, only that it feels good. Inbox Zero has the extra sugary bonus that since *some* email is an essential part of our job, it’s easy to believe (with no evidence at all) that therefore it’s useful to spend some time on *all* email.
Rather than striving for inbox zero, I advocate learning to identify the truly relevant emails very, very quickly, with an absolute minimum of cognitive load or context switching.
Hint: consider the concept of semantic priming. When you consider a topic (or even just a word), your brain unconsciously brings to mind associated concepts. I’m assuming that this is part of what happens to drain the mental energy that email drains. How would you use semantic priming to your benefit while processing your inbox?
Hint #2: Consider that humans find it easier to choose between 2 things than 3, and that the framing of a choice–e.g. the choice to read/respond to an email versus to ignore it–will dramatically change the amount of mental energy needed to process that email.
Hint #3: Consider the behavior of people who send mail. Contrast their pre-email behavior (stamps, envelopes, etc.) and post-email. What was different? Why? What implications does this have for responding to senders?
Business, Get-it-Done Guy Blog, Misc
In the discussion of my pirated products, Steve Remingon posted some good points to my Facebook page.
… you are assuming that the all 202 people who have downloaded the audio version of your book will not like what they hear, realise this information will be useful to have around and then go out and buy a paper copy. Alternatively they may like what they hear and then contact you to pay you for a services in another way.
Second, the people who do not subsequently buy an audio or paper copy of your book were never going to spend the money in the first place so you or the publishers in fact have not lost any money.
These are good points. Right now, I only have a couple of products, so increasing awareness by giving one of them away for free won’t lead to many additional sales because there’s not much else for them to buy. One of the favorable reviewers on the pirate board has already suggested they have someone sign up for my next paid program, record it, and post it on the board. I suppose I should be flattered?
While the meme of “lots of awareness will turn into increased sales” is a popular one, I suspect for every Cory Doctorow, there are 100 people like me who haven’t succeeded with that equation. The difference is that almost by definition, Cory’s grassroots popularity also spreads the story of grassroots success, while the absence of grassroots success doesn’t spread the story of “what a crappy strategy.”
I’ve been giving away free content for eleven years. The magical tidal wave of potential customers that is supposed to result never materialized.
“They wouldn’t have bought anyway” may be true. If that’s true, then unless they’re generating follow-on sales, I would rather they not have my material at all. If it’s not valuable enough to them to pay for it, and they don’t want it badly enough to buy, then they shouldn’t have it. That’s how an economy works.
“It’s OK to steal because I wouldn’t have bought the thing I stole” is not a defense that works in any legal, moral, or ethical system I’m aware of. And if a single one of those pirates would have purchased a program and now didn’t, then I’m out money.
Cost to Copy is Only One Piece of Cost
People confuse incremental production cost with total production cost. I attended MIT, Harvard Business School, and Deming’s “Total Quality” college. Then I applied big chunks of that to developing personal productivity products. The cost to me of that production is well into the six figures , not to mention several years of my life. Even the audio production of the MP3s takes time, effort, and cost. The fact that the final step in the chain—copying an audio file—has no cost attached to it doesn’t mean that it was somehow free to produce.
I don’t know. I’m just frustrated. I’m going to keep doing what I’m doing for now, but if I have a wonderfully huge underground following that doesn’t translate into enough sales to pay my mortgage, at some point I’m going to pull the plug and go do something that makes money.
HBSWK, leadership, Uncategorized
I am establishing a publishing house in Africa, and have put together a team with great potential. What strategies and skills must I employ to make the most of this potential? What is the best way to lead a crop of great people?
By assembling a great team, you’ve already put yourself ahead of the game. Rather than jump-starting the company on your own, you’ll have the easiest time, the most fun, and probably the most success by developing the team and letting the team develop the business. You just have to organize them and point them in the right direction.
Have you ever worked in a really high-functioning team? In great teams, each member brings their best to the party. They only do the things they’re best at, and they do them superbly. The work gets divided to play to each person’s strengths.
Identify your team’s strengths
Get the team together and explore each other’s backgrounds, expertise, likes, and dislikes. Match your discoveries to the work, so tasks go to whoever is most likely to finish them well and quickly.
Does a team member have contacts, industry experience, or experience in specific companies that will be valuable to the group? Put them on related tasks. Experience in a functional area or two can make a resident expert in those areas. Those with great people skills should be doing people work, while those who prefer to work behind the scenes can do research and build infrastructure.
Don’t limit yourself to obvious business strengths. Mental traits can be even more valuable over time: long-term thinking, short-term thinking, idea orientation, data orientation, comfort with stress, technological comfort, people skills, strategic thinking, ability to challenge assumptions. There are hundreds of ways to slice mental traits, but whatever your framework, know that mental traits become great strengths when matched with the right challenge.
For example, some people prefer to follow established procedures. The business press worships “innovation,” “disruption,” and “destroying old paradigms.” Well, guess what? “Out-of-the-box” disruption is great for occasional big conceptual leaps, but it’s the established procedures that drive a successful business. And when boarding a plane, who really wants a disruptive, out-of-the-box pilot, anyway? Give me a pilot who loves completing their sixty-point safety checklist today with the same precision and care they used the first time they went through it.
A strength is nothing more—and nothing less—than a skill so well matched to a task that the results are stellar. Know your team’s skills, and you can all begin turning those skills into strengths.
Use your team to hone direction
Once you have the right “who,” the team can pool resources to choose the “what.” You’ve chosen a business, and your team can hone the strategy and tactics you’ll use to make it successful. In the book Good to Great, Jim Collins suggests that a team choose a single concept—your “hedgehog concept” —to unite the business. The hedgehog does only one thing: roll into an ironclad ball. But the strategy works so well that it’s invincible on its own turf. Your hedgehog concept comes from a brew of your individual values, skills, competencies, and a healthy dose of business sense.
Passion. Rally your company around something you can be passionate about. If you’re all deeply devoted to children, youngsters, and family, for goodness sake, don’t concentrate on publishing HTML reference manuals. Publish books for teens, young adults, and families. Choose a strategy that unleashes your collective inspiration!
Being the best. Your hedgehog concept should be something at which you can be the best in the world. It doesn’t mean you are the best, just that you can become the best. This can be trickier than it seems. Your team members and their skills will contribute to deciding where you can excel. Competition can also affect your choices. Even if you have the perfect team, existing players may have locked up areas of opportunity. If I were starting a grocery store, for instance, I’d be careful about hedgehog concepts that put me head-to-head with Wal-Mart. “Huge stores with great service” is a concept that’s taken. Even a superb team probably couldn’t be best in a world dominated by Wal-Mart.
Using Your Team’s Strengths
Economic viability. Your hedgehog concept should make money. You should also be able to identify your economic drivers in the form of a measurable “profit-per-x.” Often, the “x” is not obvious. For your strategy to make sense, you may choose a subtle “x.” Collins relates the story of a company whose strategy was to cluster stores in one geographic area to be most convenient for customers. Rather than measuring profit per store, the company realized that profit per neighborhood was the key to driving operations, compensation systems, and organizational learning in pursuit of convenience for their customers.
Monitor the commitments your team makes
As you begin implementing your strategy, pay close attention to the commitments you make. Commitments provide flexibility and focus, but can also bind you to a long-term course of action. Since your venture is quite young, you don’t have a lot of operating knowledge to choose commitments wisely. So keep yourself as flexible as possible until you’re fairly sure of your course of action.
Commitments come in all shapes and sizes, but some of the most powerful are the agreements you make on how to frame the world. Your beliefs about what customers want and how they behave, if propagated throughout your company, are a very powerful frame. Ken Olsen, founder of Digital Equipment Corporation, was famous for rejecting IBM’s frame that computers meant room-sized boxes that were only useful to large corporations. He built DEC and revolutionized the industry by inventing the minicomputer. Unfortunately, he got caught in his frame of the minicomputer being The Answer. Oops. In the late 1990s, his once-leading company was acquired by upstart PC maker Compaq.
Supplier and distributor relationships can become commitments. Decisions to vertically integrate (or not) can become commitments. Deeply held cultural values can become commitments. Large capital expenditures can become commitments. One entrepreneur recently told me his company had perfected the ability to open a new market and quickly achieve a 25 percent-plus profit margin. Unfortunately, while going up their learning curve, they built factories several times their optimal size. The company’s survival is still touch-and-go—not because it’s a bad business, but because early commitments have saddled the company with unproductive, expensive assets.
Become a leader, not a manager
Finally, spend regular time leading rather than managing. You’ve got a good team, and you’ve jointly chosen a direction. Now your job is keeping the company on track. Keep your team working well together, and make sure you’re building a company where everyone plays to their strengths. Know your hedgehog concept, discuss it regularly, and make sure it guides the company’s daily decisions. Spend time thinking strategically with your management team. Have them project the hedgehog concept out one, three, or five years into the future, and steer the company and its commitments towards that reality.
Your job is creating an environment where your employees can do their best. Give them all the credit. Recognize and celebrate their accomplishments. When they screw up, lead an “after action review” to help them learn. Remember that you’re building a culture that brings out and amplifies everyone’s strengths, so use mistakes as an opportunity to reexamine the strengths of the team and change your tactics, your assumptions, or your organization.
For now, focus on getting your company off the ground. You’ve hired the crew; together you’ve charted the course. Now stand back and let them bring the dream to fruition.
