This weekend, I read The 80% Solution – a great e-book by famed business coach Dan Sullivan in which he makes the case that “perfectionism” is a misunderstood and under-reported “enemy” of successful entrepreneurship.
Per the title of his book, Sullivan's suggestion to combat this is simple yet profound - just work to get a task / a project / an idea to “80% done and out” and far more often than not that will be more than good enough.
Now, of course, the author makes the necessary disclaimers.
Like an “80% done right” heart surgery or an “80% safe” airplane, or products with 20% defect rates are obviously recipes for disaster.
But for the vast majority of us, cultivating this 80% mindset will do us a world of entrepreneurial good.
1. Most Stuff Doesn't Work. The sad reality is that most business initiatives - no matter how good our intentions or how brilliant we might think they are, and whether they be new products, new marketing strategies, new hires, process improvements - don't work.
The market greets new products with apathy (big yawns).
Process improvements don’t move the bottom line. The most likely return on a new hire…is exactly what you pay him or her.
For sure, some ideas are revolutionary and transformative, but everyone has to cycle through a lot of duds.
So the more we are able to increase our throughput - to throw spaghetti against the wall as fast and furiously as possible - far more often than not, we are the better for it.
2. Energy. Modern knowledge work, with its infinite distractions and always-on nature, is exhausting.
Maybe not so obviously as exhausting as hard physical labor, but exhausting nonetheless.
And, given that so much of it involves a series of virtual interactions with other knowledge workers facing similarly exhausting electronic loads, accelerating our “personal supply chain” via an “80% and out” mindset reduces insidious energy drains like long e-mail back-and-forths, projects extending beyond timelines and conference calls that just drone on and on.
Taking the “80% is Enough” mindset to all of it can free our energy and re-create a lightness and fluidity to our work like when it was fresh and new.
3. 80% is Fun. A great read in this same vein is Happy Brain Chemicals by Lorreta Breuning. Among its eye-opening findings as to the nature of our “mammalian brains,” Breuning talks about the power of the neurochemical dopamine and its influence on our wants and decision-making.
Dopamine can best be described as the neurochemical of anticipation and excitement.
It is that feeling one has right before one takes a bite of a chocolate cake, or the moment right before the kickoff of the Super Bowl (or for those Patriots fans of ours, the moment right when Malcolm Butler makes that interception!).
We all crave dopamine, and as such, we all crave excitement.
And excitement, because of dopamine, is dependent on “new stuff” - new projects, tasks, relationships, and the like.
“80% is Good Enough” frees up bandwidth for more new stuff to be anticipated and experienced.
And thus more fun.
So think “80% is Good Enough” and be more productive, and have more energy and more fun each and every day.
What beats that?
This week, Axial came out with a great report on the challenges and opportunities facing small and middle market businesses in 2015.
Compiled from interviews with over 100 CEOs, it is chalk full of great nuggets like:
The #1 Thing keeping CEOs up at night is "finding capital to grow their businesses." This challenge has many dimensions - from receivables and cash flow, to commercial banks (in spite of the strong economy) still mostly on the sidelines, to the availability of private equity and other forms of risk capital to fund growth initiatives.
Also ranked high on the list was properly "training, educating, and rewarding" employees.
A great white paper by AGC Partners sheds modern light on this challenge, specifically how technology innovations are “incentivizing and enabling individuals to monetize their skills, time, and possessions like never before.”
Companies like Odesk, 99Designs, and Guru are empowering skilled designers, coders, consultants, and marketers to offer their services to buyers directly, on an as needed, per project basis.
How does this relate to the talent challenges of small businesses?
First, by the simple fact that a lot of talented people - who 10 to 15 years ago would have been available for / interested in traditional W-2 employment - are now effectively out of the traditional work force.
Second, the ease with which buyers (business & consumer) can contract for services with providers and cut out “middlemen” companies that "hire and mark up" creates a whole other level of pricing and other competitive pressures.
Luckily, far outweighing these two challenges is the massive opportunity created by this “collaborative economy” for smaller businesses to access types and qualities of talent like never before.
As I have talked about previously, entrepreneurs and executives that master the art of finding and utilizing outsourced, "shared talent" from around the world - and that let go of fixed ideas of what a company is / should be - will have business model and market opportunities open to them like never before.
Finally, the Axial report shares the startling fact, even though the overall economic prognosis for 2015 is about as good as it can get, that 66% of the CEO’s surveyed rank "market forces” and the overall buoyancies of the US and abroad economies as a top worry.
To this, I would suggest a reading of Nobel Laureate psychologist Daniel Kahneman’s seminal work on negativity bias, where he found “that people regret mistakes twice as keenly as they relish successes.”
When it comes to growth planning, Phil Libin, CEO of Evernote, summed it up best when he noted that "When you point out what can go wrong, you sound smart and sophisticated, and when you emphasize what might go right, you sound naive."
It all kind of fits together: exude and embody optimism (and fight the natural propensity we all have to the opposite), conceptualize and take chances on new business models, and the money will follow.
And this is what CEOs really want, isn't it?
With a little luck, 2015 could go down as one of the best years ever for American business.
Here are seven reasons why:
7. Low Oil Prices. For both businesses and consumers, $50 per barrel oil and $3 per gallon gas have both strong real and psychological benefits.
Real, as in lower input costs for businesses and more disposable income for consumers, and psychological in removing that sense of scarcity and dread that high prices at the pump bring.
6. And It’s U.S. Oil. And, oh yes, as opposed to that oil coming mostly from a collection of unsavory, overseas actors (see Putin, Vladimir), now for the first time in decades the U.S. is poised to be a net oil exporter. These dollars staying home naturally multiply themselves - perking up manufacturing, construction, real estate, travel, tourism, etc.
5. Low Interest Rates. Predicting the direction of interest rates is one of the great fool’s errands, but it does certainly feel like we have made a long-term transition to permanently low rates.
A key factor driving this is Federal Reserve's Chair Janet Yellen’s political philosophy - well-documented over decades - that employment is the most important matter of monetary policy and any “tightening” that might lead to rising unemployment is to be avoided at all costs.
And then there is simple supply and demand -- all the “safe” world currencies (Euro, Yen, Pound) sport extraordinarily low rates too so there is no “currency flight” pressure to drive tightening.
4. U.S. Technology Leads the World. In so many of the growth industries of the 21st century - Mobile, BioTech, HealthcareIT, Robotics, Social Media, Internet of Things - U.S. companies continue to lead the way.
In addition to the massive flows of capital and wealth created and distributed by the top tech. companies (to employees, vendors, shareholders et al.), this leadership also attracts the best and the brightest scientists, engineers, and developers from around to the world to our shores.
And from this human capital new technologies and new companies are born. And new wealth created.
3. Record Exports. U.S. Exports reached $2.3 trillion in 2013, both a new record and up more than $700 billion since 2009. And the soon to be in 2014 numbers will show another record year.
Why? Well for one, U.S. companies, aided greatly by an English language and America-dominated Internet, every year become more and more effective in marketing and selling to global customers (while global customers in turn become far more comfortable in purchasing across the wires).
This powerful trend will only continue to accelerate in the years to come – opening new markets and profit opportunities for U.S companies big and small.
2. Cash Piles on Sidelines. With $1 trillion in cash sitting in the coffers of U.S. private equity firms and $515 billion on the balance sheets of leading tech. companies (try Microsoft with $88 billion, Google with $60 billion, and Cisco with $52 billion), and with this cash in our low interest rate environment earning only fractions of pennies of return, there is a high probability we will see a lot of it pour into growth opportunities this year.
And there are no better growth investments than U.S. entrepreneurial companies, especially the smaller, private ones, that over decades have consistently yielded double digit returns for those brave and foresighted enough to invest in them.
1. Momentum. Good times beget more good times. The solid, economic, political, and social news and results we have had for a few years running now are building themselves into a powerful crescendo for the new year.
Yes, more than a little luck is always needed - mostly in the form of no large, negative political or environmental shocks.
Barring that, on balance for entrepreneurs and executives out there seeking to make their mark, 2015 is looking nice and juicy.
Here's hoping we all make the most of it!
The ending of one year and the beginning of another is a natural time to take stock of all that was accomplished in the past 12 months, and more excitedly, to dream and plan on the great promise of the New Year.
In this spirit, below are a few of my favorite quotes regarding dreaming, planning, goal-setting, and "Going for It!”
"You see things; and you say, 'Why?' But I dream things that never were; and I say, 'Why not?'"
- George Bernard Shaw
(My comment: reflects the essence of the entrepreneurial spirit)
"What is not started today is never finished tomorrow."
- Johann Wolfgang von Goethe
(My comment: the "fierce urgency of now" must always inform and drive us. We live in too fast-moving a world, too merciless a marketplace, to in any way dawdle or delay.)
"Success is not final, failure is not fatal: it is the courage to continue that counts."
- Winston Churchill
(My comment: The most accomplished executives and entrepreneurs that I have worked with have impressed me as much with their fortitude and resiliency as they have with their “glamorous” attributes - brilliance, connections, salesmanship, etc.
"Really great people make you feel that you, too, can become great."
- Mark Twain
(My comment: This is the essence of leadership in modern, collaboration-driven organizations. The best managers build alignment and focused energy around shared goals and objectives.
"Goals are dreams with deadlines."
- Diana Scharf Hunt
(Our comment: The great ones dream it and do it NOW!)
Happy New Year, and may 2015 be the best year of all of our lives!
December is a natural time to reflect upon the accomplishments of the past 12 months, and to set goals and objectives for the New Year.
In doing so however, most of us think too much about next year, and too little about our longer term and multi-year business horizons.
There are some benefits to this, I mean who can really forecast market and competitive conditions and customer wants and needs beyond just a few months these days?
And, given high rates of personnel turnover endemic to our ever-increasing “low switching cost” workplace, it can feel even more difficult to do so from a “bottoms-up” resource and organizational chart basis.
But forecast we must.
Because it is only through thinking and planning long-term that we access the reflective cores of our minds and spirits to “come up with” breakthrough business ideas simply inaccessible from the “reactive” present.
• How to better leverage our company’s intellectual and brand assets to develop new products and services
• How to lay the ground work for new marketing campaigns, targeting new customers in new markets (with more favorable competitive conditions)
• How to expand globally
• Rethinking our companies’ organizational charts (and rewriting job descriptions)
• How to access outsourced and virtual pools of human talent to scale quicker and more cost-effectively
• Re-languaging our organizations’ value propositions (More pithily describing the features and benefits of our product and service offerings)
• Redrafting our mission and vision statements (and by so doing re-motivating and re-focusing ourselves and our organizations)
• And perhaps most importantly, defining with a laser like precision The Exit Plan for our organizations and for everyone in it (and getting out of No Man’s Land!)
Figuring out how to pursue opportunities and how to overcome challenges like these is almost always best done with a Start at the End approach: visioning out to the future and working backward from there.
How far to look out? I think Three Years is best.
It is long enough to get to that space of the “unbounded future” (reflect on being three years older than you are right now), while being short enough that the projects and action items arrived at very much need to be “gotten after” right away.
So, let’s all use this special time of year to reflect longer term on our more idealistic and on our bigger opportunities…
…the pursuit of which will transform our sometimes humble and prosaic day-to-day work into something far more profound.
Happy Holidays to You and Yours!
Every day I see entrepreneurs trying to find that right balance between keeping their intellectual property and business models confidential while sharing and promoting themselves to the investors, partners, and customers whose interest they so very much need to pique.
My bias generally falls strongly on the side of transparency - both because it is a virtue unto itself - and because it takes a lot of effort in our “everything end up on the Internet for all to see” age to truly maintain confidentiality.
However, I have a more fundamental reason why I generally advise entrepreneurs and investors not to worry all that much about confidentiality.
Supply and demand.
Quite simply, there very few entrepreneurs out there with the “right stuff” to actually build profitable businesses.
And those that have it are on balance, either too busy, too rich, and/or my favorite just too ethical and decent that 999 times out of 1,000 as opposed to the problem being someone of substance stealing a business idea, that the far more likely reality is a vast and unrelenting sea of apathy toward it.
Now, this does not mean that there is no place for confidentiality in modern business.
But the reason why it is important is usually more subtle than the fear of idea theft.
You see, for the vast majority of companies without eight figure+ R & D budgets, the reason why confidentiality is important has to do with the under-appreciated context of mystique.
Oxford defines mystique as "a fascinating aura of mystery, awe, and power surrounding someone or something."
I would combine this definition with one of my favorite lessons from my long ago MBA marketing class - namely that in a modern marketplace there is zero difference between "actual" and "perceived" value.
So, in these contexts, the value of non-disclosure derives not so much from the threat of a nefarious competitor stealing an idea as it does from how the aura of confidentiality bestows on an idea that “fascinating aura” that draws people and resources to it.
And from this aura flow many wonderful things: brand equity, pricing power, and marketing effectiveness being chief among them.
Now for those who say that this is quite the cynical view of things, I would encourage them for the next seven days to not take in any entertainment media - no movies nor television nor Internet - nor to appreciate the lovely design of an iPhone, and certainly to not gaze fondly on an elegantly dressed and coiffed woman or man.
In other words, to suffer for just one week like the terribly poor, extraordinarily unfortunate and very mystique - deprived people of North Korea must unconscionably suffer through every day of their lives.
And then come back and tell me that mystique doesn’t matter.
So let’s appreciate mystique - that beautiful elixir of the modern marketplace – for its own sake as the incredible gift and blessing it is.
And as marketers, as salespeople, as product designers, as entrepreneurs let’s gracefully use confidentiality and discretion to help create it.
It is hard not to laugh when I hear tired old refrains like "Nobody reads business plans anymore" or "In a world of lean startups, there is no time for strategic planning."
Why do otherwise intelligent and well-meaning businesspeople say and think things like this?
Well, for starters as human beings we all struggle to emotionally grasp the impact of the history not made, of the things that don't happen.
You see, poor strategy does not manifest itself as much in high profile flame-outs as perhaps it did in days of yore (see Pets.com, eToys, etc.) as it does in nothing of note ever being accomplished.
As in companies that grow slowly, if at all.
And make no profits.
And are led by entrepreneurs whose talent and work ethic doesn’t translate into the kind of pay and lifestyle they seemingly deserve.
Missed opportunities, lost years, unrewarded work.
These are the real but hidden costs of poor strategy.
Now, the other big misconception around strategic plans is confusing the “form of deliverable” with the process itself.
Again, this is a case where otherwise smart and well-meaning businesspeople make an obvious, but critical error: They equate the plan with a physical document.
And when done poorly, more often than not a document that is only tangentially connected to the “real business” it supposedly represents.
Now, the good news is that the literature is filled with great best practices - tested over thousands of businesses - as to how to lead strategic planning processes that are connected to the actual marketing, sales, operations, and finances of a company.
Even better news: Inexpensive, effective, and everywhere accessible business software-as-services are connecting the dots between “big” strategy and the “small” to do’s, tactics and action items at the living, breathing heart of a business.
Tools like CapitalIQ, Simplycast, The Resumator, Box, Grasshopper, Wufoo, Smarsh, IfByPhone, SnapEngage, Docusign, Hootsuite, Infusionsoft, and Interspire that automate traditionally laborious and repetitive business functions.
This is where 21st Century Strategy lives.
Now, as for those who prefer to cling to their tired clichés, well I guess they can always reminisce about how things were back in the 20th Century.
But for those who need more than nostalgia to sustain them, there has never been a better time to win by doing strategy right.
P.S. Like to demo our dashboard offering? Then Click Here to learn more.
In my posts over the past few weeks, I have talked about the power of business intelligence dashboards, and why companies that use them enjoy triple the revenue growth and double the profit growth of companies that don’t.
This is driven by the simple two facts that a) businesses today collect more data than ever before and b) wading through and making sense of it all is overwhelming as this data is collected and stored in multiple locations, including in CRM and ERP systems, in accounting software, in advertising and marketing platforms, in social media sites, and so on.
So it is the executives who quickly access this data - and connect the dots between it all - that incrementally but inexorably make better strategic and tactical decisions, gain competitive advantage, and win.
Intrigued, but not sure exactly how an executive dashboard would work for your business?
If so, you’ve come to the right place, because my team and I have created a special webinar where I share best practices as to how today’s best run companies use executive dashboards to:
• Identify the most important business metrics to track
• Develop real-time visibility into their organizations
• Improve employee performance
• Make more intelligent business decisions
• And ultimately grow sales and profits
Importantly, this webinar will neither be an academic lecture nor a sales pitch in disguise. Rather, it will be an intense hands-on workshop where I will share key tips and tactics as to how to harness the power of executive dashboards in your business right away to grow revenues and make more money - while working less and having more fun.
Sign Up Now
Note that to promote interaction, we are limiting this program to no more than 35 attendees. So click below to register before the spots fill up!
Look forward to your attendance!
Last week, I wrote about the power of business intelligence dashboards.
How, for the first time, smaller businesses can harness the power of big data to more efficiently and profitably manage their companies.
Some readers expressed skepticism that this "stuff" actually works.
That it is just more "noise” that causes entrepreneurs to get “lost in the weeds” versus long-term thinking and planning.
There is some truth to this.
Heck, “Big Data” at its worst is probably best personified by Wall Street “quant jocks” who equate positive expected value "bets" with larger, more foundational truths of right and wrong, and of good and bad.
To these concerns, let me offer a few suggestions as to how to best utilize business data to support, but not drive, leadership and managerial decision-making.
The first point is that for the vast majority of small businesses “getting lost” in the data is the least of their concerns.
A far bigger one is simply analyzing anything more than the barest minimum of balance sheet - "i.e. How much money is in the bank?" and profit and loss statement - i.e. “What were our sales last month?” data.
And when broader data, like the number of incoming leads, sales proposals, average call hold time, marketing spend per action, e-mail open and click-through rates, is analyzed…
…so much of it is either incomplete or just flat-out incorrect to make doing so an exercise in futility.
AND the data that is complete and accurate sits in so many places, Excel worksheets on the sales manager's computer, deep in a little understood (and used) CRM, in the reporting functionality of software as services like Grasshopper, IfByPhone, Constant Contact and Google Analytics to name just a few…
…that a way too high percentage of the time and energy set aside to analyze it is outright wasted in simply accessing the reports from the data sources that house it!
The simple answer to these challenges is to utilize a best-of-breed business intelligence dashboard that:
• Automatically collects and updates all the data in one easy to access place;
• Has alerts built-in to flag incomplete or way-out-out-the ordinary data; and,
• Is arranged and presented in a visual and formatted way that works for the executive reviewing it.
But it goes deeper than this.
You see, leading and managing a business based on proper data collection and analysis is no longer a choice - it is a necessity.
Because all of our best competitors are doing it.
And doing so along with proper and appropriate strategic repositioning as the consistent and correct interpretation of the data allows, affords, and demands.
Or, as David Byrne of the Talking heads once so famously said “This ain't no party…this ain't no disco…this ain't no fooling around. “
You see, when it comes to data-driven decision-making, it has become a matter of going big or staying home.
As in admitting that one is really not that serious about growing and sustaining a business of lasting value - one agile enough to adapt and evolve in the face of technological and marketplace change, and of competitive threat.
Now, I don't believe this.
No, the best entrepreneurs I know are as serious as they can be about not just surviving but thriving in this massively opportunity-filled world of ours.
Just take it one step, one click, one API integration at a time.
Sooner than you think, your business will be running more responsively, more nimbly than ever.
Then watch the profits follow.
To Your Success,
P.S. Like to demo our dashboard offering? Then Click Here to learn more.
Last week, I wrote about the strong ambition across the globe to have a "Silicon Valley of One's Own," and to replicate the otherworldly innovation of a region that has produced more than 75% of the World’s Unicorns - technology companies started since 2003 that now have valuations of more than $1 billion.
Then, on Monday I went deeper into the drivers of this remarkable concentration along with the macroeconomic drivers of today’s very hot IPO and M&A Markets: long-term low interest rates, the $1.5 trillion in cash held by big tech. companies and private equity firms seeking deals, and venture investor’s now almost universal realization that only via extremely large exits they obtain alpha.
All of this is well and good, but what we found out was of much greater interest was to look at the common attributes and mindsets of these unicorns and their prospective investors and then how to integrate these elements into YOUR entrepreneurial and investment approach, especially when:
• As an entrepreneur, you know that you don’t have a business with “billion dollar potential”
• As an investor, you are more frightened than excited by the “big outlier” return phenomenon
We put it all together and boiled it down to the most essential and actionable insights, and are going to share them via webinar on Thursday at 7 pm ET / 4 pm PT.
Do sign up now via this link: https://www2.gotomeeting.com/register/622073466
I look forward to your attendance and feedback!