4
Apr
Big buzzword of the last few years: ”Transparency”. Big question – how do you define the word?
The challenge is, some people have a skewed view of “transparency”. My top five on what transparency is not (despite what you might see in your own organization):
- Answering a question truthfully, knowing that the person wasn’t actually asking the right question.
- Announcing the truth, but weighting it in such a way that it could be misunderstood on the receiving end.
- All doom and gloom. It simply is reality, shared as a puzzle ready to be solved.
- Worthy of only a select few. Not everyone needs to see the PnL from last month, but your whole team should understand where you’re at relative to your goals.
- Negotiable.
Communication – honest and complete – is essential to the lifeblood of a fast moving, innovative company. We need to know where we’re at – what tools we have at our disposal, and potential roadblocks on the horizon – in order to operate at maximum efficiency and effectiveness.
As we strive to build organizations of Salaried Entrepreneurs, we need to appreciate that the people on our teams are adults – capable of handling the truth, and willing to work their guts out when they feel respected, trusted, and a key part of the team. Which, if we believe them to be the right people – is exactly how they should feel. Or they should be gone.
29
Mar
I hang out with a lot of Entrepreneurs. Fun crowd too, full of energy and ideas.
Particularly with “greener” entrepreneurs, I often hear of tactics they’re using to appear bigger – automated email replies, telephone answering services, 1-800 lines, etc. While it’s great to create efficiencies where you can, I worry sometimes that in their efforts to appear larger and more established, they can sometimes miss opportunities to embrace their smallness – to use it as an opportunity for real, genuine connection and interaction.
When was the last time you picked up the phone just to call a client? Not to pitch them anything, just to say “hey, how’s it going”, and to listen?
In his book Peak, Chip Conley reminds us of the importance of this:
“The bigger you get as a company, the more you need to create forums for engagement with your customers. Even if you’re big, act small.”
Peak, page 125
If, to you, being “big” means being professional and reliable, then go for it. Sadly, it more often means “aloof and unapproachable”. If that’s the case for you, it’s time to think small again.
Remember – nobody rooted for Goliath.
22
Mar
In reading John Blick’s excellent summary from last week, as well as a refresher on Tribes, I reconnected with the concept of criticism as a good thing.
What happens when I say the words, “Charlie Sheen”? Chances are, you either just said “Winning!” to yourself, or are shaking your head at how the world’s falling apart. Very few people don’t have an opinion on Sheen’s antics of late. Sheen’s polarizing. He get’s people going – either rabidly for (His “Torpedo of Truth” first two tour dates sold out in record time) or against him. I’m not condoning (nor condemning) his actions, simply stating a point – polarization gets attention.
Now, if you can polarize a cause you believe in, then you start to build a tribe. And in the teenage years of the internet, a tribe is one of the most precious assets you can have.
14
Mar
This week’s newsletter discusses two special books – The Mary Kay Way, an autobiography on the life of Mary Kay founder, Mark Kay Ash, and A Special Calling, the autobiography of Dr. Gordon Bell, a pioneer in the field of alcoholism treatment. Both individuals were highly successful in their own fields. The biggest theme through both books though, is the innovators’ whole hearted belief in the Golden Rule; do unto others as you would have them do unto you. And that’s it. That was the “secret to success” for both these celebrated people.
Gary Vaynerchuk has a new book out – The Thank You Economy. In it, Gary talks about the importance of treating your customers and followers with respect. At the end of the day, that’s all we’re talking about. We’re talking about respect. About human connection. About not “counting” your fans, but connecting with them.
Simple message, yet so profound – treat people with dignity, respect and love. It’s not a new one (in fact, it’s one of the oldest). And yet it keeps popping up. Which is to say, we still need to hear it.
Here’s a couple other great books that hit on the notion of the Golden Rule as it applies to business:
I Love You More than My Dog
Greater Than Yourself
8
Mar
The following article was first shared in spring 2011 issue of The Art of… Magazine.
Of the $4.3 Billion in quarterly profit that Apple reported for 2010′s Q4, over $1 Billion came from iTunes sales.*
Seth Godin’s latest book Poke the Box encourages provocation – challenging long held beliefs or accepted practices. Seth (and others) suggest we need to re-examine our “boxes” and relish the opportunity to reinvent them. I’m looking forward to reading it because, personally, I think the box is dead. And at the same time, more important than ever before. Let me explain…
It dawned on me the other day when I did a quick inventory of the juggernaut business success stories of the 21st century – Apple. Amazon. Ebay. Facebook. Google. Zappos. From A-Z (literally), these businesses have one thing in common – they’ve made their billions not by selling better boxes or “thinking outside the box”, but by escaping the box mentality completely. These companies (and others) create platforms.
Simply defined, if a box is a clearly defined product or service, a platform is a basic set of parameters that allow others to create their own boxes.
Whether it’s internally or externally facing, a platform consist of four core components:
- A base: The internet works well for this. So does any existing physical entity.
- Tools: A platform is a place for others to build. Give them the tools to do so.
- Simplicity: Complexity creates walls; a lid. Too many rules and your platform will start to look eerily like a box.
- Purpose: Facebook gives people a chance to connect with their friends. eBay’s a place to make some money. Tell people why they should build on your platform.
The challenge with traditional boxes is that even the most successful have a limited shelf life and a growing number of competitors. Let’s revisit Apple’s revenue report – the other $3.3 Billion in profits from 2010′s Q4 came from iPhones, Macs and iPads. How many of the current versions of those products will be selling the same volumes six months from now? Two years? To be in the box business, you need to be constantly creating new boxes (iPad 2 due out early this year). Not so with platforms. Apple needs to make virtually no changes to the iTunes store to maintain (and likely grow) the current level of activity.
Unlike Boxes, Platforms have exponential growth potential. As more consumers adopt, more contributors are drawn in who, in turn, create more for consumers to adopt. And the faster the platform grows, the harder it becomes for a new competitor to stand a chance. First Mover’s Advantage takes on whole new implications in the Platform world.
So are boxes dead? Traditional boxes, yes. We need to think about them in new ways. As mentioned, the iPad is a box. But it’s also a portal to the Apple platform. And that’s the important part. Understanding that Apple typically keeps 30% of every App sale, how many Apps do you think a consumer has to buy before Apple made more off those than they did off the device itself? There’s a reason why Apple TV was re-launched at $99 last year – Every person that buys one is also committing to a significant number of App Store purchases and, by lowering the price point from the original $229, Apple encourages new user to adopt their platform as well.
The main message is to not limit yourself to box thinking (regardless of whether your “outside the box” or in it). Boxes are best when they act as a base for a well thought out platform.
One final thought on platforms: They work as well internally as they do externally. In my list of platform companies above, I mentioned Zappos; an online shoe retailer that sold in 2009 to Amazon for $1.2 Billion. They sell shoes. Zappos is, however, noteworthy for another reason: Zappos didn’t turn their offering into a platform. Instead, they used the power of the platform internally – turning their call center job description into a platform. From their Las Vegas head office, Zappos call center representatives are given the training, tools and freedom to dazzle and impress their customers on their own terms. No script, just a genuine desire to help. And permission to do so. Does it work? Zappos CEO, Tony Hsieh has 1.2 billion reasons to think so.
*http://www.macrumors.com/2010/10/18/apple-reports-q4-2010-profit-of-4-31-billion-on-20-34-billion-revenue-best-quarter-ever/
