Friday, May 31, 2019

10 Change Recommendations To Meet Business Pressures

meet-business-pressuresEvery business professional needs to stay cool under pressure, to be a top performer, and for the sake of their own health. Yet everyone has a melting point – a critical threshold where pressure causes them to respond irrationally. Many people believe their threshold is permanently set by family genetics, or cultural influences, but I believe anyone can train themselves to stay cool.

In my role as a business advisor, I’ve seen it happen many times as business leaders mature, and I’ve felt the change in myself over time. I’ve always been looking for the specific behaviors required to make the change, so I was pleased to see some real guidance in a classic book, “The Melting Point,” by Dr. Christian Marcolli, a world-class expert on sustainable high performance.

I like his ten behavioral change recommendations for improving your ability to stay cool under pressure and deliver sustained world-class business performance under massive intensity:

  1. Define and commit to live by your core values. People who try to be someone they aren’t feel constant pressure. Strive to understand your core values and your deeper purpose (personal and professional), and use only these when making fundamental decisions. Get out of, and don’t take on roles that force you to compromise your values.
  1. Prepare for your key performance moments. Some professionals refuse to prepare for known tough issues, with a false belief that they can finesse any challenge, or they refuse to prioritize. Even the best do extra homework to prepare mentally and emotionally to be at their personal best to deliver on key performance meetings and presentations.
  1. Focus on and recognize incremental progress. The key to sustaining high motivation and a high melting point is feeling that you are making progress on key issues on a daily basis. Sometimes it means reserving daily dedicated time for key issues, to facilitate visible progress. You will then experience satisfaction, instead of increased pressure.
  1. Save 30 percent of your energy for outside activities. Leaving work every day exhausted leads to burnout and easy meltdowns. Save some energy for your family and friends, and restoring balance and vigor to your body. Professionals who don’t manage their diet, exercise, breaks, and sleep, will always find their melting point nearby.
  1. Establish boundaries and say ‘no’ more often. The most productive and respected business people know their limits and assertively protect them. Don’t be afraid to stand up for yourself and courteously explain to bosses or colleagues why certain requests or expectations may be unreasonable. Do the same in commitments to family and friends.
  1. Plan for performance with a reserve. Schedule yourself in such a way that you can expect to deliver your top results at 90 to 95 percent of your energy levels. This allows for those all-too-common occasions when things take longer than expected, or your time is pre-empted for higher-priority tasks. Learn to delegate more as well. Never over-commit.
  1. Manage office political relationships. Time spent building and maintaining key work relationships can dramatically improve your productivity, reduce stress, and raise your melting point. After having assessed your environment, start healthy networking activities, such as lunch, with important people in your professional network on a weekly basis.
  1. Add more inspirational people to your network. When you reach a certain level or role in an organization, it is difficult to find time to spend with inspiring people who can provide you with insights and new perspectives. Set aside time to seek out experts in your field for ideas, as well as mentoring and coaching. Make this a priority in your private life also.
  1. Mentally transition between work and home. To raise your melting point, always take a few minutes of silence at the beginning of each day at work to get mentally and emotionally ready to be at your personal best. Do the same ‘check-in’ with your best side as you transition from work to home. You will connect better with people in both worlds.
  1. Disconnect from work devices in the bedroom. Diligently protect some private space in your home, preferably your bedroom, where no work devices or conversations can appear. This space must be associated only with rest and recovery, to offset the stress and demands of the office. Only make exceptions if there is a true business emergency.

The stakes are higher than ever in this competitive and rapidly changing world. Businesses have become pressure cookers filled with disruptions and chaos. It’s enough to drive the best of us to a meltdown in performance or confidence.

Don’t assume that what you can achieve or tolerate is limited by anything or anyone in your present or past. With a new focus on the right habits, you too can be the cool business leader you now only read about in the news.

Marty Zwilling

0

Share/Bookmark

Wednesday, May 29, 2019

Why Amazon Is the Undisputed E-Commerce Growth Leader

amazon-leader-ecommerceEveryone wants to grow and innovate like Amazon these days. From meager beginnings selling books online back in 1994, Amazon is currently the largest e-commerce retailer and cloud computing platform in the world, and now dominates even the giant Walmart. In my role as a business advisor, I’ve long wondered how to pass their secrets along to other new ventures.

Recently, I saw some help in that regard in a new book, “Think Like Amazon,” by John Rossman, a former top executive at Amazon. He launched and scaled their Marketplace business, and now heads his own firm to help clients innovate and grow in this digital era. He offers over 50 guiding principles, distilled from his tenure at Amazon, to become a digital leader in today’s marketplace.

For those of you who don’t have time to read the whole book, here is a sampling of a few key points that should get you thinking in the right direction, and maybe just keep you a step or two ahead of your big competitors:

  1. Add a platform that provides self-service growth. A platform is a business model and capability that can be accessed and customized by external users. With each outside participant, the platform grows stronger and smarter, and works better for internal users as well. The platform must capitalize on user-generated content and other people’s work.

  2. Create and practice an obsession over customers. Make sure everyone knows it’s their job to maintain empathy and exceed customer expectations. Dive deep into every issue experienced by customers, and don’t delegate figuring out the root causes. Institute deep metrics measuring all aspects of the customer experience. Accept no excuses.

  3. Don’t look for the short journey or a straight line. Jeff Bezos recommends avoiding the constant knee-jerk reactions to the quarter-to-quarter growth mentality that’s popular today. Compensate with shares rather than bonuses to make it happen. Strategize and evaluate your plans over a long period of time to make “bets” that other businesses miss.

  4. Experiment, fail, rinse, and repeat. Digital success depends on moving quickly and measuring the impact of changes through tests. Senior leaders need to be personally involved in defining the tests and reviewing results and implications. Think big, but proceed with only small bets. Distinguish between test failures and poor execution.

  5. Master the magic of small autonomous teams. Amazon is famous for their Two-Pizza.Teams (no bigger than two pizzas will feed), allowing an entrepreneurial mindset more autonomy, agility, and accountability. The business owner must be the leader of the team, written specs are required, and the team must be populated only with A+ people.

  6. Raise the bar to avoid the biggest hiring mistakes. At Amazon, every position hire is assigned a “bar raiser” who is independent from the hiring team, and especially recognized for making good hires. This person assures that haste and manager bias are avoided, the interviews are systematic, and candidates fit well beyond immediate roles.

  7. Stay hungry even when you are successful. Jeff Bezos always instills a sense of urgency by demanding business plans from business leaders on how they would disrupt their own lines of business. He tolerates no “country club culture” or “playing it safe” mindsets. He reacts quickly to slowing growth expectations and efforts to reduce risk.

  8. Use artificial intelligence to reinvent customer experiences. Amazon targets the new machine learning technology to leverage his focus on customers. He deploys it in narrow specific processes to expedite decisions for customers (Internet of Things), and new ways to get to “yes” and eliminate the bureaucracy that forms as companies mature.

The author offers many more principles and actions that have allowed Amazon to become the digital leader they are, and can be emulated in your company as well. Customer and competitive demands are rising across all sectors and experiences. You too can set the bar higher, through constant iteration, innovation, and a relentless customer-first focus. Do what Amazon is doing.

Marty Zwilling

*** First published on Inc.com on 05/15/2019 ***

0

Share/Bookmark

Monday, May 27, 2019

5 Team Dynamics That Raise Real Barriers To Progress

angry-team-no-progressManaging and motivating a team in a startup is more than just using the right interpersonal skills. It’s more than providing recognition, tangible incentives, and clear work goals. A key influencer of satisfaction and motivation, top-ranked by employees, is positive progress and the completion of meaningful work. Sometimes you have to manage progress, not people.

“Busy work” and “grunt work” are deadly terms in a startup environment. So are setbacks, project cancellations, and frequent changes of direction that make people doubt that the work they are doing will ever see the light of day. These points are illustrated in detail in “The Progress Principle,” a classic book from the Harvard Business School, by Teresa Amabile and Steven Kramer.

They explain that work progress and setbacks matter so much because one of the most basic human drives is toward a person’s belief that he or she is individually capable of planning and executing the tasks required to achieve desired goals (self-efficacy). Steve Jobs had his share of setbacks, but he never let those dampen his team enthusiasm.

Negative events cause uncertainty, doubt, or confusion in people’s sense of themselves, and lowers their motivation for the work. In fact, an analysis of thousands of detailed logs from employees show that setbacks have more power to sway work satisfaction than progress:

  1. The effect of setbacks on emotions is stronger than the effect of progress. The power of setbacks to diminish happiness appears to be more than twice as strong as the power of progress to boost happiness. The power of setbacks to increase frustration is more than three times as strong as the power of progress to decrease frustration.
  1. Small losses can overwhelm small wins. The asymmetry between the power of setbacks and progress events appears to apply even to relatively minor triggers. Similarly, small everyday hassles hold more sway than small everyday assists. Any manager’s job description should start with facilitating subordinates progress every day.
  1. Negative leader behaviors affect work satisfaction for everyone. Managers should avoid actions that negate the value of work in progress. One way is dismissing a team member’s work, or changing priorities arbitrarily, or inadequate communication. Don’t assign people who are clearly unqualified, or over-qualified, to a task.
  1. Failure to facilitate progress and remove obstacles. Consistent daily progress by individual employees fuels both the success of the organization and the quality of those employees inner work lives. This progress principle should be the driving force and the number one objective of every leader.
  1. Other types of negative events – not just setbacks – are more powerful than their mirror-image positive events. Based on employee logs, the connection between mood and negative events is about five times stronger than the connection between mood and positive events. Employees recall more negative leader actions than positive actions.

People often say, “it’s business, it’s not personal.” But work is personal. If people feel capable, then they see difficult problems as positive challenges and opportunities to succeed. Put another way, they develop a “sense of empowerment.” This need grows throughout their career as people compare their achievement with those of their peers as well as their own “personal best.”

As an example, entrepreneurs often have great difficulty relinquishing top leadership positions when their companies have grown beyond their own management capacities, because they have invested so much of their personal identities in what they have built.

In many cases, only you as the founder can remove barriers to progress, such as meaningless tasks and toxic relationships, before they disrupt employee motivation and productivity. Only you can activate the positive forces that enable progress, including “catalysts” and “nourishers.” Start today in your own startup, to eliminate the negatives, as well as accentuate the positive.

Marty Zwilling

0

Share/Bookmark

Sunday, May 26, 2019

7 Keys To Exponential Growth Driven By The Whole Team

exponential-business-growthMany startups and entrepreneurs I advise still default to growing their business via the traditional top-down, order-taking culture. I’m convinced that you can’t stay competitive that way with today’s customers, and today’s employees. It’s time to push decision making down into the organization –insisting that the people closest to the customer and the markets learn and make the decisions.

I saw strong validation for this approach in the classic book, “Sense & Respond,” by Jeff Gothelf and Josh Seiden. They argue that successful organizations spend more time building and maintaining a learning culture of listening to customers, enabling their team to make decisions, and creating new products continuously. Here are seven key elements of the culture we both espouse:

  1. Accept that you don’t know all the answers – show humility. Anything you or your team knows about the market today may change tomorrow. Don’t demand or assume immediate and certain answers. Foster a culture of constant dialog with customers, experimentation, and multiple pivots required to stay competitive and responsive.

  1. Give the team permission to fail, and learn as a result. Experiments are how we learn, but experiments, by nature, fail frequently. If failure is stigmatized, teams will take fewer and fewer risks, and your business will fall behind. Practice blameless post-mortems to honestly examine what went well, and what should not be continued.

  1. Foster self-direction and alignment to a greater mission. If your mission is clear, and the organization is aligned around it, self-direction takes root and delivers superior solutions. Team members will want to take personal responsibility for quality, creativity, collaboration, and learning. You just provide the environment and support for success.

  1. Promote the honest sharing of information – good or bad. Never shoot the messenger of bad news. Don’t forget to listen carefully to the total message before responding. Ask questions without undue emotion, and always focus on the positive or possible solutions. No one learns from no communication, or misrepresentation of data.

  1. Practice a bias toward action – not analysis paralysis. Constant debates and re-analysis of data are the enemy in a fast-moving and competitive marketplace. A thriving process culture today assumes that you will be making many small decisions, seeking feedback, evaluating the evidence, and then deciding once again how to move forward.
  1. Define customer value as the only path to business value. Customer empathy is required today to maintain a strong market position in the face of global competition. Everyone from the CEO to call-center representatives must have a sense of what your customers are trying to achieve, what’s getting in their way, and how you can help them.

  1. Build a team culture of collaboration, diversity, and trust. The best learning teams are smaller, diverse, and work in short, iterative cycles. There is no time today for lengthy, sequential work with hand-offs between specialists. People with different points of view, who trust each other due to social ties, collaborate well to positive results.

With these culture elements, organizations today are emerging and thriving, based on their improved capacity to sense and respond instantly to customer and employee behaviors. The alternative is another Eastman Kodak, who failed to keep up with the transition from film to digital cameras, or another Blockbuster Video, overrun by Netflix and streaming videos on the Internet.

More successful examples include Facebook, which continues to change and lead today, despite assaults from Twitter, Instagram, and others; and Tesla Motors, still leading the electric car market, despite repeated initiatives from the major auto manufacturers and other upstarts. We will soon see if they can hold that lead in the coming era of totally autonomous vehicles.

These winners, and almost every successful new startup, have successfully established a learning culture that customers, as well as employees, are flocking toward. But a cultural transformation doesn’t happen by default; it must be led, even though employees and customers want to work in the new way. Are you an active agent of this change in your company, or a continuing obstacle?

Marty Zwilling

0

Share/Bookmark

Saturday, May 25, 2019

10 Activities That Will Tag You As A Business Leader

Bill_Gates_2017Based on my years of experience as a new business advisor, I always find leadership to be more important to business success than any new technology or innovative solution. The challenge is to adequately define leadership in terms of everyday activities. Most entrepreneurs believe they are leaders, even though the feedback I get from their team and partners may indicate otherwise.

Thus I’m always looking for more practical guidance on the right activities to be perceived as a business leader. I found some great specifics in a classic book, “The Leadership Challenge,” by James M. Kouzes and Barry Z. Posner. These authors bring a wealth of experience in this domain from their workshops, writing, and lecturing on business leadership worldwide.

They have identified ten specific behaviors of exemplary business leaders that I believe every entrepreneur and business professional must focus on to improve their leadership abilities, as well as the perception of others around them as a leader:

  1. Clarify values by communicating shared values. Being viewed as an exemplary leader requires first that you find your voice on your own deeply held values – beliefs, standards, ethics, and ideals. Then strive to understand the same for your constituents. Affirming all shared values is the way to building productive and working relationships.
  1. Set the example by aligning actions with shared values. People listen to what you say, but they follow what you do. How you spend your time is the clearest indicator to all what’s important to you. Your questions determine the path people will follow and focus their search for answers. Show that you actively listen to feedback and model the values.
  1. Envision the future by imagining the possibilities. Even as you stop, look, and listen to messages in the present, you also need to spend considerable time reading, thinking, and talking about the long-term view. Leaders today need to express passion for doing something significant no one else has yet achieved, including society and environment.
  1. Enlist others by appealing to shared aspirations. Enlisting others is all about igniting passion for a purpose and moving people to persist against great odds. You have to engage the hearts and minds of your constituents. To foster team spirit, breed optimism, promote resilience, and renew faith and confidence, real leaders look on the bright side.
  1. Seize the initiative with innovative ways to improve. Leadership is inextricably linked with the process of innovation, of bringing new ideas, methods, and solutions into use. This means making things happen where others don’t, and rewarding initiative in others. It means looking outside your experience, and promoting diverse perspectives.
  1. Experiment to generate small wins and learning. Leaders break down big problems into small, doable actions and initiate experiments that don’t paralyze others with major risks. This creates a climate for learning and winning, to build resilience and grit, as well as incremental progress toward goals. It also builds personal fulfillment, rather than fear.
  1. Foster collaboration by building trusting relationships. Without trust, you can’t lead. You can’t get people to believe in you or each other. Trust is the key to productive relationships, and relationships with peers, constituents and customers are key to great businesses. Building trust requires showing concern for others, and open sharing.
  1. Strengthen others by developing their competence. A well-recognized paradox of leadership is that you become more powerful when you give your power away. The best leaders spend more time supporting and mentoring their constituents to develop their competence and confidence, and then delegate effectively with accountability.
  1. Show appreciation for individual excellence. The best leaders are clear about the goals and rules, expect the best, always provide feedback, and personalize recognition for results. One of the most powerful recognitions is a simple “thank you” delivered in a timely manner. Find out the types of encouragement that make the most difference.
  1. Celebrate victories and a spirit of community. Fun isn’t a luxury at work. Smart leaders find and create occasions to bring people together to publicly celebrate accomplishments and build community. Get personally involved in as many recognitions and celebrations as possible. Show you care by being visible in the tough times.

Exemplary leadership behaviors like these will always make a profound positive difference in people’s commitment and motivation, their work performance, and the success of their company. Especially if you are don’t yet carry an executive role or title, now is the time to start practicing these activities. The most effective and satisfying leadership comes without a title to lean on.

Marty Zwilling

0

Share/Bookmark

Friday, May 24, 2019

Change Your Management Style To Meet Today’s Culture

angry-bossChange is hard. But these days it’s required and inevitable. Yet, in my daily role as an advisor to entrepreneurs and small business owners, struggling to boost revenues, profits, and earnings, I still see too many managers falling back on command-and-control, a focus on weaknesses, and not enough time for people. The result is lost productivity and a poorly engaged work force.

For example, it may seem quicker and more effective to hand your service desk employees the store policy manual, and tell them to follow the rules, rather than spend time coaching them on how to really listen to customer feedback, and use their strengths to build customer loyalty. Most team members want to do the right thing, but may not have your insights or years of experience.

I just finished a new book, “It’s The Manager,” by Jim Clifton and Jim Harter, leaders at Gallup, who have assembled feedback from the largest study of its kind, including over 37 million people from businesses around the world. It says we still have a long way to go in improving workplace cultures, and moving up workplace engagement from the worldwide current dismal 15 percent level.

They provide abundant details and examples, but net out nicely the top six key changes in culture that I also see and recommend on a regular basis to business managers and leaders that I work with. These are changes in culture that we all need to recognize and adapt to, most clearly driven by the growing percentage of millennials and Generation Z, include the following:

  1. Employees need a purpose as well as a paycheck. For a growing number of workers today, compensation is important and must be fair, but it’s no longer their primary motivation. The emphasis for these people has switched from just a paycheck to having meaning, and so should your culture.
  2. For example, when John Mackey of Whole Foods made it clear to employees that his larger purpose was helping people live a healthier life, his team and his customers found a new excitement beyond groceries, resulting in growth and profitability that easily outpaced the industry, as well as awards as one of the best companies to work for.

  3. Team members want development plus satisfaction. Just offering perks, like fancy latte machines and ping pong tables, does not create lasting team engagement. They want personal and career development. That means you need to pinpoint the right goals for each employee, develop a plan, and commit to taking their careers to the next level.

  4. If you have an employee potentially ready for management, executive shadowing can be a great way to expose them to critical elements of other jobs, while they are still learning in their current role. It is also a great way for employees to more formally explore potential career opportunities internally, before they jump ship to a competitor.

  5. Your people will expect more coaches than bosses. They demand to be valued as individuals, and coached to understand and build their strengths, rather than treated as soldiers and directed to march into battle. The best managers give targeted feedback in their areas of expertise and make connections to others who are better suited to the task.

  6. They want ongoing conversations, not just annual reviews. With modern technology, employees communicate constantly with people who count, and expect their managers to do the same. Annual reviews alone have never worked as a substitute for regular feedback on things done well, and not so well. Meet team members on their own turf.

  7. Don’t fixate on team weaknesses – capitalize on strengths. Gallup research shows that weaknesses almost never develop into strengths, while strengths develop infinitely. You need to recognize and understand weaknesses, but double-down on strengths. A strengths-based culture will also help you attract and keep star team members.

  8. A job can no longer be treated as just a job – it’s your life. All employees spend a majority of their waking hours on the job. For their engagement, they expect support, relationships, appreciation, and satisfaction. With workers now at multiple locations, including home, office, and around the world, it’s impossible to separate work from life.

Even the best business strategies will ultimately fail without the proper business culture and great managers, to give employees what they want most – a great job and a great life. As a technologist, it took me a while to learn that managing people is a lot harder than managing technology, but much more satisfying in the end. I also found it’s never too late to start.

Marty Zwilling

*** First published on Inc.com on 05/10/2019 ***

0

Share/Bookmark

Wednesday, May 22, 2019

As An Entrepreneur, Are You Ready To Meet The Press?

Lewis_Hamilton_-_Media_InterviewNot so long ago, training to meet the press and television reporters was a realm reserved for top business executives only. Now, even the earliest stage startup can rise to visibility or be forever lost by their first media spotlight, so it behooves us all to know the rules early. Most entrepreneurs I know admit to a poor first media interaction, and many are still waiting for the instant replay.

On the social media side, the stakes are just as great. Ask Eric Migicovsky, founder of Pebble, who raised over $10 million on the Kickstarter crowd-funding platform for his relatively low-tech wristwatch with programmed clock faces. Kickstarter may take a bit of the credit for this, but they admit the majority of projects without media attention don’t even approach their funding goals.

There are lots of expensive public and media relations firms out there who can give you the full treatment, but I recommend starting with a good book on the subject, like the classic by media training expert Brad Phillips, “The Media Training Bible.” He provides 101 two-page lessons divided into eight learning categories that I like as follows:

  1. Learn the ground rules for traditional media. Few of us have the background to know when to turn down an interview request, or never use the “no comment” approach, or when it’s more effective to comment “off the record.” Even practical issues, like understanding reporter deadlines, and your own editing rights, are critical.
  1. Craft messages and message supports. A message is a one-sentence statement that incorporates two things: one of your most important points and one of your audience’s most important needs or values, with a call to action. Message supports are stories, statistics, and sound bites that reinforce your message. Both need to be clear and direct.
  1. Make every interview memorable. The key to any effective interview is to articulate a message or message support in almost every answer you ever give. Speak in complete sentences, aimed at the 12-year-old language level, and skip the acronyms. Avoid tentative phrases like “We’re trying” in favor of the stronger “We are doing.”
  1. Answer the tough questions. You must answer every question, every time, or risk appearing evasive, online or on camera. Yet quickly transition back to the message and supports. In all cases, you must stay cool, avoiding anger, sarcasm, or the urge to walk away. Never offer an answer unless you know it’s true – it’s better to say “I don’t know.”
  1. Use appropriate body language and attire. The main impression you leave with an audience may have little to do with your words. Show energy, eye contact, and gestures to enhance the impact of your words. Wear solid colors, and make your look true to your brand and yourself. People judge you and your company in the first few seconds.
  1. Handling different media formats. These days the media formats range from email, phone, radio, television, to social media. Social media includes blogs, social networks, and video-sharing sites. With social media, you are always “on the record” and once you say it, it’s out there forever. All the lessons from traditional media apply, and more.
  1. How to respond to media in a crisis. A crisis is an event, precipitated by a specific incident, that attracts critical media attention and lasts for a definite period of time. It could be a product quality problem, or a major customer complaint on Twitter. The challenge is to be prepared, and communicate quickly and effectively until it’s over.
  1. Prepare, prepare, prepare for every media event. Even the most experienced executives write down what they need to say, and practice for every event. Steve Jobs was a master at this, even though he had years of experience. The result was that every interview or event, online or live, came off naturally and positive. Why do many entrepreneurs think they can “wing it” and get the same results?

Every entrepreneur in this new era of shrinking attention spans, social media overload, and sensationalized reporting needs to know how to create positive messages, cut through the noise, and motivate audiences with multiple media. Don’t wait for a reputation-destroying disaster to start your learning. You won’t get a second chance for a great first impression.

Marty Zwilling

0

Share/Bookmark

Monday, May 20, 2019

5 Keys To Expanding Your Thinking And Raising Results

Image via Good Free Photos 
It’s time for more entrepreneurs to reset their focus, and shift their thinking to completely different ways of doing things. Everyone talks about innovation, but the majority of business plans I see still reflect linear thinking – one more social network with improved usability, one more wind-farm energy generator with a few more blades, or one more dating site with a new dimension of compatibility. Serious changes and great successes don’t come from linear thinking.

In searching for ways to get this message out, a while back I came across a no excuse, no apology book by Brian Reich, called “Shift and Reset,” which makes some excellent points on ways to increase the range of change in a person’s thinking, or an organization’s results. Here are some of the key principles that he espouses, and I support:
  1. Force and expect change. Everyone knows change is hard and messy, and occasionally painful. But unless we force ourselves to change, innovate, and experiment with different ways of addressing serious issues, we won’t find solutions that are needed. Major innovation won’t happen without real commitment, sacrifice, and hard work.
  1. Measure ability and results, not experience. Move to a model where people are measured on their deliverables, not how hard they are working, or how many years of experience they have. For entrepreneurs, this may mean more learning from experiments, and for organizations it may mean dumping a stagnant team to start over.
  1. Don’t settle, demand the best. If you want to perform at the highest possible level, you need to hire the best people, who have produced consistent exceptional results. More energy needs to be spent on how the teams are organized and how the individuals work together. Leading an organization or a movement requires skills not taught in school.
  1. Launch fast, fail quick, and learn more. Indeed, even the most capable, passionate, and well-supported entrepreneur will succeed only if he or she has a clear plan to follow. But don’t believe that any plan will develop and must remain unchanged throughout the execution process. Plan in your plan for constant change, with learning.
  1. The time is now to think bigger. Great new ideas are emerging from the massive and frenetic coordination of people online and through connections. Let’s make sure they aren’t lost or ignored as we head into the future. Now is the time when smaller, yet dedicated groups can communicate and work to bring together disparate ideas.
Reich makes the point that everyone has a role to play in solving major issues, and driving greater innovation. The Internet and social media facilitates cooperation and collaboration, which is what we need to shift our thinking, then reset our goals and ways of attaining them. It’s much easier to challenge everything we know, and turn them on their sides.

Especially for change in serious social issues and infrastructures, it’s now easier to motivate people to care enough and take action. We will never innovate quickly by following the same, old, tired patterns. We need to realize what being connected really means, and makes possible. Now is the time to change.

Innovation begins with knowing your customer, so that’s always the first place to focus. The shift and reset in thinking applies to finding the solution, more than in defining the problem. Linear thinking on the solution can doom a startup or an entrepreneur. A good step in the right direction is to build a team with diverse backgrounds and perspectives.

This helps break linear thinking, and greatly reduces the probability that you’ll solve a problem in the same old way, or just like your competitors. Another approach is to bring in team members from outside your domain to challenge your thinking. You as an entrepreneur can either take the lead to make real change happen, watch it happen, or wonder what happened. You decide.

Marty Zwilling
0

Share/Bookmark

Sunday, May 19, 2019

6 Marketing Tips To Attract Customers To Your Rollout

Image via Flickr by jardenberg 
Your marketing launch is the most important element of startup success these days, to get customer attention in this world of information overload. Yet it is the one element that too many entrepreneurs focus on only as an afterthought. Everyone assumes their product or service is so great that “word-of-mouth” will carry the day for them.

Even great products need great marketing “content” to fuel the ascent of their online message. A couple of years ago, I saw a classic primer on the key elements of great online content that I like, in “Launch: How to Quickly Propel Your Business Beyond the Competition,” by Michael Stelzner, founder of SocialMediaExaminer.com.

Michael delivers field-tested guidance on how to create the core elements of great content for your announcement, your webinars, blog posts, Facebook contests, newsletters, Internet TV, and other initiatives. It’s all about content that will bring the masses to your business:
  1. Highly relevant. To get to the core of what’s relevant to customers, you need to know them well. Use your content as a way to make a connection between your business and things that matter to them. The more frequently you can deliver content that meets the needs and desires of your customers, the more relevant you will become to them.
  1. Educational. Helping customers discover new ways to solve common problems can quickly build you a loyal following. Your content must continue to deliver new ideas. In simple terms, this is where you share your knowledge, as well as the guidance from other experts, for free.
  1. Easy to digest. A conversational tone should be the basis for all of your content. Highly relevant and educational content if irrelevant if you can’t make it easy for people to understand. Common approaches include the use of metaphors, tell stories, and always stay on topic.
  1. Visually appealing. The eye is just as important as the mind when it comes to customers. The old saying, “A picture is worth a thousand words,” is still alive and relevant. Make sure your paragraphs are short. Use callouts and bullets to help the reader speed through your content.
  1. Conversation inviting. Great content is conversation. If you want to connect with customers, put aside your writing formalities. Your language doesn’t have to be perfect. It’s pretty simple to do. Simply speak out loud. Then write it down. The message should spark a side conversation between friends, and a follow-up comment to you.
  1. Lacks a sales angle. Great content shouldn’t have any obvious marketing messages or sales pitches embedded inside of it. If your content is about your specific product or service, that’s not great content; it’s marketing collateral. People won’t flock to marketing materials.

Creating these core elements is a lot easier if you can team with outside experts to help you. They have what your readers seek – important, worthwhile knowledge, and some experts already have a large following of their own. They are a shortcut that can put you far ahead of your competition.

Some experts are so instrumental that they are called “fire starters.” These are people who have so much influence that their endorsement can ignite your efforts nearly overnight. The best potential fire starters have the eyes and ears of people who closely match your ideal base. Nurture these relationships, and provide generous value to them in return.

Every marketer throws around the word “content,” but few have mastered the art and science of creating useful, thought-provoking, and viral content. Great content doesn’t happen by accident. Start early in your planning, build your own skills, or find the best expertise you can afford. There is nothing more devastating than a good business that fails to launch.

Marty Zwilling
0

Share/Bookmark

Saturday, May 18, 2019

10 Entrepreneur Attributes That Will Make You A Star


Elon Musk via Flickr by TED Conference 
To be successful as an entrepreneur, you don’t have to be a fabulous person, but it helps. Some people, and some entrepreneurs, have that something extra that you can’t quite put your finger on, like Ryan Seacrest is searching for on American Idol. But the entrepreneurs that have it, including Elon Musk and Richard Branson, seem to be able to effortlessly get team members, investors, and customers to follow them anywhere.

In her classic book on this subject, “The Essentials of Fabulous,” Ellen Lubin-Sherman, who has been tracking fabulous people most of her life as a writer and journalist, tried to net it out. She identifies less than a dozen primary qualities for fabulous people in general, and I have honed and tuned these to ten that apply especially to entrepreneurs, in my experience:
  1. Be passionate about life, as well as your business. Entrepreneurs who have passion in business, as well as their life, may drive us all batty, but there is never a dull moment. These moments are always being transformed into options to be explored. They make life interesting and an adventure, and everyone loves an adventure.
  1. Be delightfully authentic and honest. Authentic entrepreneurs are destined and determined to have fun, as well as move forward in business. They have an unerring confidence that’s inspiring yet attainable. They savor relationships, and are generous with themselves and their smarts, so they attract a savvy following.
  1. Be revered for an amazing positive attitude. Rather than cave when things get tough, optimistic entrepreneurs go analytic, looking for pivots that keep their goals in sight. They are disciplined, upbeat thinkers, but they don’t take themselves too seriously, and know how and when to laugh it off. A negative attitude takes everyone down.
  1. Be warm and completely accessible. Warmth comes from your smile, and facial expressions that indicate genuine interest. Investors and partners look for entrepreneurs that will look them straight in the eye when speaking, and give their full and undivided attention while you’re speaking. Everyone looks for “rapport talk” rather than “report talk.”
  1. Have impeccable manners and flair. Entrepreneurs who are always looking for opportunities to be gracious and considerate are going to be liked, admired, sought after, and trusted. In business, that means staying connected, showing up on time, with no signs of boredom or preoccupation. It’s not always about you, so dress and talk for them.
  1. Be competent and confident. Competent people accomplish more in business because they’re driven by a pronounced sense of purpose. They are willing to put themselves on the line, and have confidently done their homework to know what it takes. They are reliably consistent, and unafraid to ask for help.
  1. Able to just “get it.” Entrepreneurs who “get it” are emotionally attuned to peers and customers, so that their gut-level instincts become informed judgments that move the business forward. “With-it”-ness takes work, like reading the right blogs every day, challenging yourself to stay abreast of the latest technology, and social media marketing.
  1. Have a big bandwidth. Can you talk, with equal engagement and respect, to your company’s CFO and the guy who pumps your gas? Look for opportunities to praise and nurture the people with diversity. Get comfortable out of your circle of interest and expertise. Go for that black belt in networking.
  1. Be vivid virtually. Developing a superior virtual presence requires a mastery of several mediums – phone, email, text messaging, as well as handwritten notes – but the payoff is undeniable. But don’t overuse virtual communication to the exclusion of face-to-face time In all cases, don’t forget your sense of aplomb, mastery of tone, and the spell-checker.
  1. Attract a superstar board of advisors. The right board is a group of individuals who may not know one another, but know you, and know your business domain. Plus, they need to be willing to put their brains and their expertise at your disposal as long as you need it. No entrepreneur is an island, so take the initiative to build an advisory board.
Paying attention to all these things is how you become a fabulous entrepreneur, another entrepreneur idol. I’m sorry, but there is no magic, and it doesn’t happen overnight. Of course, it will never happen if you don’t start or don’t believe. But it’s worth the effort, unless you have something better to do?

Marty Zwilling
0

Share/Bookmark

Friday, May 17, 2019

5 Exciting Technologies That Need Your Execution Help


DNA image via Wikipedia 
As a business advisor and technologist, I often think about the large array of opportunities for entrepreneurs as technology seems to be evolving faster and faster. Yet I still too often hear the question, “Can you give me a really sure-fire idea for starting my own business?” My standard answer is that ideas are a dime a dozen, and success is all about smart execution, not ideas.

Yet from time to time, I try to step back and look for some of the most promising and exciting technologies that I see coming down the pike. In that context, I recommend the classic book, “Driver in the Driverless Car,” by Vivek Wadhwa with Alex Salkever, which categorizes many of the leading ones that everyone, both entrepreneurs and consumers, should be thinking about:
  1. Self-driving cars, trucks, drones, and planes. The opportunities to capitalize on these vehicles are huge, ranging from control software, hardware design, support facilities, to entirely new applications. The challenge, according to a survey from a couple of years ago, is that just one in five people today would entrust their life to a driverless vehicle. Execution won’t be easy.
  1. Artificial intelligence (machine learning). According to experts, computers with more power than the human brain are mere seven to fourteen years away. Artificial intelligence is still young, but already embedded in our everyday lives, through decision support, navigation routing, and much more. Future opportunities for entrepreneurs are endless.
  1. Personalized genomics and healthcare. Advances in the understanding of the genome of an individual is leading to personalized medicine, also termed precision medicine. The next step is manipulation of these genomes to fix and even prevent many disorders, totally change the efficacy of healthcare, and extend and improve your life.
  1. The Internet of Things (IoT). The IoT is a fancy name for the increasing array of sensors embedded in our commonly used appliances and electronic devices, vehicles, homes, offices, and public places. These sensors talk to each other, and to us, via Wi-Fi, Bluetooth, or our smartphones, to help us manage our environment and live a richer life.
  1. Merging of man and machine (robotics and biology). Amazing progress is being made in underlying hardware and software, and costs have plummeted. Siri and her compatriots will soon be able to converse with you in more physical and emotional ways. The mental distinction between humans and machines will become almost imperceptible.
There are many more, but these are ones high on my priority list for entrepreneurs looking for a place to start. Yet with these, as with any other opportunity, there are many risks and implications, pointed out by Wadhwa in his book, for every entrepreneur to consider with each idea. He and I suggest that you always ask yourself the following three questions before starting:
  • Does your idea have the potential to benefit everyone equally? Many technology advances have negative implications for certain industries and segments of society. Your market may be limited to the top one percent of income owners, or may imply values that are unacceptable to the mass market. Consider the societal big picture before jumping in.
  • Does it promote autonomy or dependence? Customers don’t want new technologies to be like recreational drugs that they become dependent on. We all want greater autonomy – the freedom to live our lives the way we wish to and to fulfill our potentials. Entrepreneurs need to focus on ideas that lead to customer autonomy, not dependence.
  • What are the higher-level risks and rewards? Beyond the normal risks of starting a new business, many new technologies have the potential for moral and environmental risks. What if you mess up and create monsters or destroy the environment? Look at the potential side effects and long-term consequences of an idea, before making a legacy commitment to that business.
For me, and for most technologists in business, the future is both very exciting and a bit hair-raising. I certainly see no shortage of ideas and opportunities, but I recommend that every entrepreneur, and every consumer, take a hard look at the broader implications of each new technology. There is plenty of room for good, so select wisely and execute well. The quality of all our lives depend on it.

Marty Zwilling



0

Share/Bookmark

Wednesday, May 15, 2019

“Nail It Then Scale It” - The New Mantra For Startups

Steve Blank via Flickr by jdlasica 
I see more and more entrepreneurs who seem to have everything going for them – vision, motivation, passion, even a good business plan, product, and money, and yet they can’t close customers. Maybe it’s time to look harder at the mantra of a new breed of gurus and successful entrepreneurs, including Steve Blank and Eric Ries, called “nail it then scale it” (NISI).

You can review all the specifics of this approach in the classic book by Nathan Furr and Paul Ahlstrom, appropriately titled “Nail It then Scale It: The Entrepreneur's Guide to Creating and Managing Breakthrough Innovation,” but I will net it out here. I found their five phases of the process to be compelling, based on my own years of experience mentoring startups:
  1. Nail the pain. Great businesses begin with a customer problem that has a big and monetizable pain point. Avoid the three big mistakes, of guessing but not testing the pain (on real customers), selecting a low customer pain (solution is only nice to have), or selecting a narrow customer pain (small number of customers willing or able to pay).
  1. Nail the solution. Neither breakthrough technology nor maximum features will assure that “if we build it, they will come.” In fact, NISI recommends starting with the minimum focused set of features and technology that will drive a customer purchase. Success demands testing the solution early and quickly in the market, then iterating to get it right.
  1. Nail the go-to-market strategy. In parallel with nailing the solution, you need an in-depth understanding of your target customer’s buying process, the job they are trying to get done, the market infrastructure, and a stable of serious pilot customers. Do real tests with real pricing to see if customers will pay you, without being pushed.
  1. Nail the business model. Leverage your customer conversations to predict and validate your business model. For example, when you think about distribution channels, revenue streams, or the relationship with the customer, ask customers what they expect. Don’t forget a viable financial model of costs, margins, customer acquisition, and break-even.
  1. Scale it. Don’t attempt to scale it until you have a proven repeatable business model that predictably generates revenue. Only then is it time to focus on the get-big-fast strategy, and the transformation of three key areas from startup to a managed growth company. These areas include market, process, and team transitions.
These pragmatics and points of focus can effectively counter three core myths which trap too many enterprising and capable entrepreneurs today:
  • Hero myth: Why believing in your product leads to failure. All too often, founders fall in love with their products or technology, ignore negative feedback from customers, and spend years building a product based on a vision that no one else shares.
  • Process myth: Why building a product leads to failure. Conventional wisdom is that after a great idea, the next steps are raise some money, build a product, then go sell the product. This doesn’t work when attacking unknown problems with untested solutions.
  • Money myth: Why having too much money leads to failure. The old saying that “it takes money to make money” isn’t so simple. Money allows entrepreneurs to execute a flawed business plan far too long, rather than stay focused on the market and adapt.
At the heart of it, to be a successful entrepreneur you have to be totally customer centric, and learn to change and adapt as fast as the market. The pace of change in the marketplace is escalating, so entrepreneurs have to improve their ability to deal with change.

At the same time, more entrepreneurs are jumping into the fray, and less money is available from investors. It’s time for a new startup model. In my view, savvy “super angel” investors such as Mike Maples, Jr., and leading incubators such as Y Combinator, are already on this one. How far behind is your startup?

Marty Zwilling
0

Share/Bookmark

Monday, May 13, 2019

5 Steps To A Winning Assault On The Army Of Investors

Image via Flickr by lumaxart 
Don’t charge the hill until you are “ready.” This probably seems obvious to military types, but I see entrepreneurs violating this rule all the time. They approach key potential investors way too early, trying to talk their way up the hill, with no supporting business plan, and before they have a support team around them. Needless to say, they usually get shot down, and get no second chance.

The first rule is to separate your advisors from your investors. Perhaps a close personal friend can be both (the earliest stage and first tier investors should be “friends and family”). But for angel investors and venture capital investors, just remember that investors are not on your team (yet). You only get once chance to make a great first impression.

Continuing with my military analogy, here are some logistics, suggested ammunition, and an assault strategy (the bold points apply to every aspect of building the business):
  1. Do your reconnaissance first. Before you meet a potential investor, check them out on the Internet and through your advisors. You need to know exactly what the investor has done before, what he is doing now, and what will interest him If you walk into his office cold, and can’t convince him you meet his interests, you will walk out cold.
  1. Coordinate and brief your support team. Make sure all your advisors and team members know exactly what your mission is, and if possible, have at least one of them make prior contact to set the stage. If the investor thinks you are coming to ask for domain advice, and you ask for money, your success probabilities are shot.
  1. Fully prepare for the assault. Don’t try to talk and demo your way up the hill. Talk bounces off and won’t stop any bullets. Lead with your two-page executive summary, be prepared to give a ten-slide investor presentation. Keep your big guns, the business plan and financial model, in your holster but visible for backup.
  1. Put your ear to the ground before charging ahead. Offer to give your executive presentation, but he may want just the elevator pitch. Listen, and follow his lead with confidence and enthusiasm. Don’t insist on a product demo – he is buying the business, not the product. If you have an hour, use no more than 20 minutes for presentation.
  1. Follow-up to assess progress or casualties. Have someone else, if possible, follow up with the investor the next day, to find out what really happened. If you didn’t learn anything from the meeting, you weren’t listening. Most VCs won’t volunteer to the Founder what they think, because that limits their options later.
By now, you are probably saying that this is “old school;” when going to Sand Hill Road offices was like going to the principal’s office. There you were ushered into a gorgeously appointed conference room for a precise amount of time with a serious-looking partner. Now some VCs and angels actually hold court in a nearby Starbucks or Paradise Bakery.

But believe me, investors are, if anything, tougher now than then. Don’t be fooled by the informality. Preparation, professional image, confidence, and strategy are just as important as they ever were. The strategy of “I’ll talk to him informally and early, find out what he doesn’t like, and then I’ll fix it,” is pure folly. Napkins don’t really work as your business plan.

Some of the most prepared “teams” I have seen are essentially one person, with a few part-time advisors, who seem to overcome all obstacles. One person can look like an army charging the hill, if they use all the networking facilities of the Internet, all the tools available to build business plans, financial models, and product prototype.

Don’t be afraid to use some mercenaries to back you up (outsourcing, consultants). All the shortcuts up the hill are rigged with minefields. Better safe than sorry. This is serious business.

Marty Zwilling
0

Share/Bookmark

Sunday, May 12, 2019

6 Keys To Making Timely Changes To Save Your Business


Image via Wikipedia 
Change is about the only thing constant in the world of startups. Despite their own focus on changing the world, they often forget that they too have to change rapidly and often as the market evolves. Too many find that out too late, and are left chasing a rabbit that is long gone.

The solution is to establish and maintain a culture and processes that don’t view change as a discrete event to be spotted and managed, but as an ongoing opportunity to improve competitiveness. Chris Musselwhite and Tammie Plouffe, in a classic HBR article on change readiness for large companies, define it as “the ability to continuously initiate and respond to change in ways that create advantage, minimize risk, and sustain performance.”

Since the startup environment is usually more volatile, the challenge there in balancing advantage, risk, and performance, is more critical than in big companies. The following initiatives that Chris and Tammie define for large companies apply just as directly to startups:
  1. Improve change awareness. How good are you and everyone on your team at proactively scanning the environment for opportunities, emerging trends, and customer feedback? This contextual focus is critical to innovation and survival – the right product at the right time.
  1. Increase change agility. Change agility represents a startup’s ability to immediately and effectively engage everyone in pending changes and innovations. It starts at the top with the founder and CEO, but has to extend quickly to the bottom of the organization. This requires leadership, teamwork, and trust at all levels.
  1. Expedite change reaction. This is the ability to appropriately analyze problems, assess risks, and take responsibility for problem-dictated and market-dictated changes, while still sustaining the day-to-day business activities. It’s called the management of unplanned changes, or how well your startup reacts to crises.
  1. Implement change mechanisms. Every organization needs to have specific mechanisms in place to facilitate change, including regular effective communication, reward systems that reinforce desired change behavior, and accountability for results. These won’t work in an autocratic or dysfunctional management environment.
  1. Build a change readiness culture. Change readiness is hard work, and requires creativity sometimes in conflict with task orientation. People have to have the right attitude, and make the choice from the beginning to be ready to change at any time. They need a sense of urgency to handle change, and confidence in their leaders.
  1. Imbue customer change focus. The more everyone in the startup is obsessed with satisfying customer needs and providing better customer service, the more effective the startup will be in adapting to change. Provide direct customer contact to everyone, as well as training.
Experts say that we live in a world where the pace of change is accelerating at the fastest rate in recorded history. On the other hand, change management practices seem to be changing very slowly, resulting in a 70% failure rate of change initiatives. Failure rates this high demand a new mindset and startups are the logical place for this to happen.

For starters, the whole team needs to be constantly trained and encouraged to develop their skills. Relevant skills include continuous improvement of existing methods, processes and devices against a set of quality metrics. The ultimate skills, which lead to innovation and totally new processes, usually come from experimentation and special studies.

In summary, change will happen. If your people and your startup do not change, statistics say you won’t survive. It’s up to you to get out of your comfort zone and make things happen in your startup, rather than let things happen to your business.

Marty Zwilling
0

Share/Bookmark

Saturday, May 11, 2019

6 Ways To Prepare Your Company For The Future Of Work

Image via Pixabay 
It’s time to take the drudgery and dread out of work at your business. You don’t like it, millennials won’t put up with it, and current productivity levels at work continue to decline. Only 32 percent of American workers are even engaged at work today. Most workers are still rushing to retirement, where they hope to escape to more stimulating activities with a real sense of accomplishment.

In my view as a long-time business advisor, this problem is driving a new entrepreneur age, with the lure of doing what you love, and loving what you do. Yet most startups soon degrade into the negative work environments of more mature businesses, unless they know how to change their approach right from the beginning, and continually focus on the key pillars of work transformation.

I found these pillars, and the first principles behind them, pulled together well in a classic book, “Embracing Progress: Next Steps For The Future Of Work,” by A. Sophie Wade. She has lived and worked in five countries, and consulted with major corporations, as well as startups, in transforming their workplaces to be more productive as well as more satisfying. The pillars of change she details include the following:
  1. Embracing and adapting to technology. Technology is not the solution per se, but it provides the key enablement, drivers, and support for the required flexibility, integration, communication, metrics, and affordability that are required in the workplace today. More people as a substitute for technology is not a solution. No one is happy or satisfied.
  1. Build engagement through culture and mindset. Employee engagement is a measure of emotional commitment, leading to work focus, which translates to productivity, satisfaction and happiness. It starts with a mindset, but requires a like-minded community and culture to survive. Leaders must embrace respect, reciprocity, and recognition.
  1. Show leadership, transparency, and empathy. For leaders today, the success factors include a progressive, open attitude to new ideas and processes, wherever they may come from. The goal must be to eliminate organization silos, flatten hierarchies, and empower employees within projects. Make sure roles match interests and capabilities.
  1. Coach for productivity, performance, and creativity. The traditional once-yearly look-backward performance paradigm has to be replaced by daily or weekly coaching focused on a career roadmap ahead. Leaders at all levels need personal engagement with employees, to understand their interests, skills, and match to roles needed in the future.
  1. Focus on values, cultural impact, and environment. There has to be more to your business today than making money, to get employee engagement and satisfaction. Company values must include respect for the environment and social good. The costs of these elements will be more than repaid by employee engagement and customer loyalty.
  1. Treat freelancers and contractors as employees. Today your talent pool is worldwide, including salary as well as contract arrangements. All must feel that they are committed to the same goals, and part of the same team – not second-class citizens. They all need the same feedback, respect for their input, and coaching to maximize their engagement.
As obvious as many of these principles may seem, the reality I see is that most organizations and most business leaders have not embraced them yet. I believe this is largely because the traditional “command-and-control” management practices are long-established habits, and it’s hard to find the time to really engage with your team, and be sensitive to individual interests.

Recent studies reveal that highly-engaged organizations are experiencing double the success rate of less engaged ones. And there is nothing like success to put fun and satisfaction back into your work, and the work of your employees. When was the last time you saw members of your team happily working well past required hours? Maybe it’s time for you to break some old habits.

Marty Zwilling
0

Share/Bookmark

Friday, May 10, 2019

7 Keys To Using Social Media to Kickstart Your Brand

Image via Pixabay 
After a frustrating meeting with a small business client recently who didn’t “have time” for social media, I was surprised to find evidence on the Internet that up to one quarter of small business owners are still hesitant to invest time, money, and effort into a social media strategy.

They don’t realize that they are missing out on a great opportunity for “free” promotion, as well as taking a great risk by not listening to what customers are saying, and not monitoring or responding to undeserved challenges to their reputation.

The classic example from several years ago was United Airlines not staying tuned in to social media, resulting in a unrecoverable customer problem causing great damage to their reputation, escalating to countless articles, and even a book, “United Breaks Guitars.” On a more positive note, there is a wealth of evidence that social media has resulted in some big paybacks.

Of course, nothing is totally free, and I have heard the horror stories of relatively small companies finding thirty or more employees spending most of their time scanning and using social media for promotions, or engaging high-priced consultants who never seem to be able to show any real return for all of their efforts.

I recommend the following steps as a start for maximizing your own return. I recognize that some of these may seem, well, basic to our social media-savvy readers, but based on my own recent experience in the real world, there are still plenty of people looking for a place to start:
  1. Research the use of social media by your customers. If your customers are consumers, especially on the upscale and younger side, social media is likely their number one source for brand decisions. On the other hand, if your business is selling commodities to government entities, social media may rightly be at the bottom of your list.

  2. Choose the best social media platform for your domain. If your interest is in reaching business professionals, LinkedIn has by far the greatest potential. Snapchat is almost exclusively a young person’s hangout, but you will likely find consumers of all ages on Facebook and Twitter. For B2B environments, consider who makes the buy decisions.

  3. Approach influencers and key stakeholders appropriately. Social media is not all about being social, or treating everyone casually. For serious customers and investors, treat them with respect and stick to topics that are interesting and relevant to them. Viral videos, personal anecdotes, and informal surveys would likely be counterproductive.

  4. Integrate social media into your overall marketing strategy. Just like ignoring social media is not smart, relying on it totally is likely not an optimal strategy. Most businesses need a mix of offline and online marketing, promotions, loyalty programs, and community involvement. This required mix must be reviewed and updated as your brand matures.

  5. Pay special attention to attract a strong first impression. It definitely pays to get some help with your first step into social media, since first impressions often become lasting ones. Jumping in haphazardly with poorly a focused message is definitely non-productive, and may harm your business. Do your homework before you begin.

  6. Use business metrics and tools to tune your efforts. More social media activity doesn’t mean a higher return on investment. Start by getting familiar with social media analysis tools, such as Google Analytics, Snaplytics, and SproutSocial. Always gauge progress by business indicators, like customer acquisition cost and customer satisfaction.

  7. Demand professional business skills and customer advocacy. The people who lead and deliver your social media content need to fully understand your business, and be able to make real decisions on behalf of your customers and your business. Customers today rate will your business by the quality of your social media listening and response.
Too many business owners still consider social media a fad for chatting with your friends, or keeping up with the news. In fact, it’s much more than that today, and has become one of the most important tools for every business to keep in touch with customers, and build a brand. As with any business tool, you need to use it correctly, and measure the cost against the return.

Marty Zwilling

*** First published on Inc.com on 04/25/2019 ***
0

Share/Bookmark

Wednesday, May 8, 2019

5 Key Drivers For Creating A Board For Your Startup

Image via Flickr by MDGovpics 
Many entrepreneurs I know are confused by definition and need for an Advisory Board versus a Board of Directors. Some view both of these as a waste of time and burden on the CEO, while other founders surround themselves with insiders and cronies in an attempt to expedite and add credibility to their own interests. I suggest a few simple considerations will clarify the alternatives.

By definition, Advisory Boards are voluntary and have no fiduciary responsibility. Yet I suggest a small one has value for every startup, starting at inception, prior to a major investor or key business scaling initiative. This Advisory Board is a good test drive for the more formal Board of Directors required later, when going public (IPO) or the entrance of venture capital investors.

In all cases, board members should be selected individually for their ability to independently add value to the expertise and experience of the management team, with no obligation or intent to add weight to internal views. The details of these considerations are outlined in a classic book, “The Board Book,” by Board expert and founder of The Board Institute, Susan F. Shultz.

Shultz provides a set of considerations that I recommend to every entrepreneur for deciding when and how to create the board that has the most value to a specific CEO and a specific business. These considerations include the following:
  1. Are you looking for advice or a boss? Most founders and CEOs will not voluntarily establish a formal Board of Directors, unless they are trying to attract a major investor, preparing for an IPO, or planning for an acquisition. As an alternative, every CEO needs an Advisory Board to help them grow, which they can ignore or fire at their pleasure.
  1. How much are you willing to spend on your board? Advisory Board members often serve for a nominal retainer, or one percent of the equity, whereas Directors for even a small company would expect at least a five-digit retainer, plus meeting expenses. Also expect that much more of your time will be required to sustain a Board of Directors.
  1. What role do you want in selecting board members? Board of Directors members must be formally elected by stockholder votes for a stated term. Obviously, a CEO can recommend directors, but CEOs directly select Advisors, and they are replaced as interests and needs change. Legally, Directors are accountable for corporate conduct.
  1. Do you expect involvement in company operations? Advisory Board members rarely get involved in operational roles versus strategic issues, while specific Directors often spend much time on executive compensation, processes to satisfy regulatory requirements, and reviews of budgets, acquisition proposals, and major policy changes.
  1. How many board members need you work with? A Board of Directors must represent all constituents, so it often grows to ten or even twenty members, although I recommend keeping the numbers uneven (to eliminate tie votes), and less than ten. For Advisory Boards, I recommend three to five as max, to limit costs and time spent for support.
The challenge is to avoid the mistakes that can compromise any Board, advisory or formal, in its independence or effectiveness to the business. Shultz discusses many of these, but here are a few which are the most common in my experience:
  • Failure to focus strategically rather than tactically. Most stockholders think only about the next quarter, and most CEOs worry about short-term survival. Since Boards are a function of both of these, it’s hard to find boards able and willing to keep a proactive focus on strategy. They tell you what you need to hear, not what you want to hear.
  • Too many beholding insiders, friends, and family. Insiders will tell you what you want to hear. Their allegiance, sensitivity to rank, and familial biases make open discussions difficult, and interlocking directorships set up too many situations where directors work for favors from each other, or work against each other due to non-business issues.
  • Lack of involvement and leadership by the CEO. Even with all the right people on the Board, it’s still the CEO who sets the culture, drives the focus, and makes the difference. The best CEOs balance the focus between strategy and selected current issues. They stay in touch, transparently provide info, and make Board recommendations happen.
Thus, it is my view that every entrepreneur and every business needs at least a couple of outside advisors, if not a formal Board of Directors. As an angel investor, I judge readiness for investment by their presence or absence, by the CEO’s relationship with them, and by the quality of the advisors. It’s a resource that you can’t afford to ignore if you intend to stay competitive today.

Marty Zwilling
0

Share/Bookmark

Monday, May 6, 2019

7 Problem Solving Mistakes To Avoid In Your Business

Image via Flickr by Fortune Conferences 
In every business, especially new ones, quick and effective problem solving is a critical skill. The problems you face are more complex and moving faster than ever before, and the consequences of a poor or incomplete solution can be costly to your business, and well as to your community, human health, and the environment. What we learn in school hasn’t kept up with the demands.

For example, there is no question that Theranos and Elizabeth Holmes faced a host of complex problems in their drive to offer a comprehensive blood test from just a finger stick and a single drop of blood. Yet few would have believed that problems could have brought down such a promising solution, as well as the reputation of the founder, despite a $9 billion valuation.

I found some real insights into today’s problem solving challenge in a new book, “Bulletproof Problem Solving,” by Charles Conn and Robert McLean. These authors have more than thirty years of experience in complex problem solving, including solution approaches, in McKinsey & Company, start-up companies, and many social and environmental organizations.

Based on my own thirty years of experience in large and small business, and advisory roles with new businesses, I support their summary of the common pitfalls that many business leaders experience in facing the problem solving challenges in the marketplace today:
  1. Settle for weak problem statements, without root cause. Rushing into analysis with a vague problem statement is a clear formula for long hours and frustrated customers. You need clarity around the decision-making criteria and constraints, the time frame required, and an indication of action that will occur when the problem is solved, or not solved.

  2. Asserting the answer based on bias, ego, or passion. Asserting any solution without proper validation in this complex world is a recipe for disaster. No matter what your conviction or experience (“I’ve seen this before”), the stakes are too high to try to force an answer. In this age of instant and total communication, you can’t fool customers.

  3. Failure to break the problem into component parts. Only by first finding all the cleaving points that allow you to dissect the problem, will you likely find the most serious crux of the issue. Elizabeth Holmes never focused on how many false positive blood tests were sending people to the hospital, or she might not have minimized the problem.

  4. Neglecting divergent views and team culture norms. Groupthink amongst a team of managers with similar backgrounds and traditional hierarchy makes it hard for anyone to see the real alternatives clearly. Every leader needs to make sure and listen to people with a diversity of experiences, who are open-minded, and have no ulterior motives.

  5. Rely on an incomplete or outdated analytic tool set. Some issues can be resolved with “back of the envelope” calculations, while complex modern issues may demand more time and sophisticated new tools. For example, sometimes no amount of regression analysis is a substitute for a well-designed real world experiment with “big data” analysis.

  6. Failure to link conclusions to a compelling action plan. Analytically oriented teams often say, “We’re done” when a solution is found, but don’t follow-through with a plan to communicate complex concepts to diverse audiences, and sell their action plan to stakeholders. Effective solutions capture the total audience with compelling actions.

  7. Assuming each problem can be solved once and for all. Rarely is a problem solved totally the first time. Complex problems have a messiness about them that takes you back and forth between hypotheses, analysis, and conclusions, each time deepening your understanding. Expect your problem solving to be iterative and a learning process.
Every leader needs to adopt a systematic approach to problem solving and continually hone their skills. The authors present a seven-step approach that works for them, and has been proven across multiple business arenas. I recommend that you do your homework to find a system that works for you and avoids the pitfalls outlined here. The longevity of your business today totally depends on it.

Marty Zwilling

*** First published on Inc.com on 04/21/2019 ***
0

Share/Bookmark

Sunday, May 5, 2019

8 Steps For Developing Employees To Generate Loyalty

Image via Flickr by University of the Fraser 
It’s a whole new world out there in the workplace. Millennials want work that matters, and don’t care for hierarchies. Boomers are coming back to work, but because of their experience, they may be insulted by constant feedback. All prefer more flexible hours, the chance to work from home, and the traditions of lifetime loyalty to one company no longer apply.

Loyalty to a given company now has to be inspired rather than assumed. These challenges, with recommendations for addressing them, were detailed nicely for me in the classic book, “The Boomerang Principle,” by Lee Caraher, who has built several companies, and has helped many others manage Millennials, reduce turnover, and improve satisfaction and the return hire rate.

She and I both offer the following insights on how to green your own pasture by helping employees find and use their strengths, and inspiring them to be more satisfied and productive, on your side of the fence, and even happily return if they do wander in their career advancement:
  1. Provide a structured approach to mentorship. Mentoring is the number one request by Millennials in the workplace. They are used to, and appreciate, relationships with older people who will help them navigate their way. Coincidentally, Boomers love to share their guidance to bridge the generation gap. Thus mentoring inspires loyalty all around.
  1. Create a culture of specific and timely feedback. Everyone needs feedback, but they dislike just the annual performance reviews. Employees today expect a culture where feedback, both positive and corrective, is natural, timely, and constructive. Adjusting your style so that each employee hears you is the mark of a leader who generates loyalty.
  1. Focus on the next step, as well as the current role. Employees need to feel that their role today in your team will be beneficial to their career tomorrow, and what opportunities you might see for them. If you match that with commensurate training and professional development coaching, you will see their commitment, productivity, and loyalty in return.
  1. Allowance for today’s work flexibility needs. Today, it’s not only caring for children, but also caring for elderly parents or relatives. Real work flexibility also caters to personal preferences regarding the time and location of work, not just fixed options. With our new devices and pervasive Internet access, almost any work can be done from anywhere.
  1. Define work deadlines rather than work hours. Flexible work requires inflexible deadlines that are specific – time, date, time zone – and consistently met. Measuring attendance-only from nine-to-five is not satisfying or productive for the company or the team. Overt planning takes into consideration each team member’s preferred schedule.
  1. Adjust salary practices as careers progress. The old standard practice of three percent raises every year, for people in their early career, basically ensures that your younger talent will look elsewhere quickly. For good performers, larger increases early (10-15 percent) generate loyalty. Ensure that all employees are paid at market rates.
  1. Create an expectation of happiness at work. Happiness and loyalty tend to go hand in hand. Unhappy team members are a drag on everyone’s performance as well as loyalty. Unhappiness comes most often from under-appreciation, lack of understanding of what is required, and resentment of punishment for mistakes. Don’t let these happen.
  1. Expect career transitions and plan for them. No employee today stays forever, because they need career broadening. Your company also benefits from a regular infusion of new ideas, skills, and experience, so treat transitions as mindful and positive. Employee loyalty includes what they say to peers, and their potential to return later.
Make your company a good place to be from, as well as a good place to work. No one will say it’s easy, or you shouldn’t have high expectations from every team member. The longer you keep non-performers, energy suckers, or toxic people on your team, the more likely you are to lose the good people. However, always set a high bar for your behavior on the way out for anyone.

Just because someone isn’t right now doesn’t mean he won’t be right later. The best companies create cultures to which employees want to return, which provide both short-term and long-term benefits. That’s the new lifetime loyalty, and it serves everyone better than the old model of the same employees forever. Is your company there yet?

Marty Zwilling
0

Share/Bookmark