Monday, February 15, 2016

Healthy Eating


These days, a lot of people are interested in eating healthy. And, one staple of the healthy diet seems to be the salad.

Let me ask you a question. How much time do you spend thinking about salad? Hopefully, not too much. But, it is a great lesson in entrepreneurship.

As I have been trying to prove, the great idea is largely a myth. This has been the premise of my last few blog posts. If you have not read them yet, go here and here and here.

You see, a lot of companies have an Inside-Out perspective. That is to say, they ask themselves what can they produce and how can they sell it.

This is essentially the chotsky phenomenon. A lot of companies create products that do not have viable markets. Essentially, they are creating junk, or, solutions for which there exists no real problems.

A much better approach is an Outside-In perspective. Meaning, we need to be market and customer focused. Drucker would call it, "Looking out the window." We need to search for real problems to solve. And, sometimes, the solution is mind-numbingly obvious.

Let's talk about Fresh Express.

While it is true that a lot of people want to eat healthy, it is also true that most people want convenience. And, eating healthy can often be at odds with convenience. Meaning, healthy eating usually requires more effort.

Enter the bagged salad.

A little company, in Salinas California, called Fresh Express, was able to see what the big boys could not. The big produce companies, as big companies often do, kept their attention squarely inside their own windows.

What I mean is, while the big boys were focused on their commodities, things like lettuce, carrots, and radishes, Fresh Express was focused on the customers' problems. This allowed Fresh Express to pick up on what might be called the "elusive obvious." The company did not have some bright idea. They simply saw what other people could not see.

The people, at Fresh Express, asked themselves, “If people want to be healthy, but they also want convenience, why don't we give it to them?” The solution? They created pre-made, single-serving salads and put them in a convenient, airtight bag.

People want to eat salads, but they do not want to go to all the trouble of making a salad. Fresh Express fixed the problem.

Was it a big problem? Well, in 2005 the company got acquired, by Chiquita Brands, for $855 million. Not too shabby for a bunch of lettuce! Next time you are at the grocery store, see if you notice them in the produce section.

To take single-serving salads, and put them in a plastic bag, is ridiculously simple. It is the very antithesis of a great, or bright, idea. And, it is the essence of entrepreneurship.

The fact of the matter is, most successful innovations are amazingly simple. So, if you wish to succeed as an innovator, do not get all sophisticated. Remember to keep it simple.


Monday, February 8, 2016

Zipcar


It is important to remember you do not need a great idea to start a business or to become an entrepreneur. As a matter of fact, you do not even need an idea of your own.

The Austrian economist, Joseph Schumpeter, has been called the Prophet of Innovation. Schumpeter said that capitalism was characterized by a phenomenon he called creative destruction. Creative destruction is the very definition of innovation.

Though Schumpeter did not give much instruction on how to innovate, he was a large influence in the life of Peter Drucker. Drucker built upon and extended Schumpeter's work. 

And, Drucker was no fan of the great idea. In fact, Drucker said, “In the theory and practice of innovation and entrepreneurship, the bright-idea innovation belongs in the appendix.” Strong words.

The reason Drucker disliked the bright idea is pretty simple. Contrary to popular belief, entrepreneurs do not love risk. In truth, if you wish to succeed as an entrepreneur, you are well-advised to minimize your risk.

The main problem with the bright idea is that it is the riskiest of all methods of innovation. Statistically speaking, the bright idea is, by far, the least likely to succeed. Indeed, very few bright ideas end up being a success.

Enter Robin Chase and the stolen idea.

Drucker recommended that all entrepreneurs, and executives, search for the future that has already happened. Robin Chase started Zipcar in her fifth decade of life. At the time, she was living near Boston, had three children, and a strong desire to become an entrepreneur. But, she was never able to come up with the big idea.

Fortunately for Chase she has a very astute friend named Antje Danielson. Danielson is originally for Germany. On one trip back home, Antje noticed a new business concept. Namely, rental car companies that were offering cars by the hour instead of the day or the week.

All Chase and Danielson did was to import the idea of the hourly rental car to America. I say this with nothing but love, but, Zipcar is a stolen idea. And, in 2013, the company was acquired, by Avis, for $491 million. Not bad for about a decade's worth of work. Especially considering that neither Chase nor Danielson had ever been in the automotive industry. Chase did not even like to drive!

Hopefully you agree that entrepreneurship need not be some mystical or elusive endeavor. In fact, like most things entrepreneurship can, and should, be studied systematically. And, as the title indicates, the systematic study of entrepreneurship is a big part of what is blog is all about.

For more examples of the future that has already happened, visit my site courtneyleeds.com


Monday, February 1, 2016

Primekss


This is a concrete story. And, it is a tale of innovation.

Last week I mentioned that I am going for a full-out assault against the myth of the great idea. A lot of people think entrepreneurship is dependent upon having great ideas for products and services. I will be giving you concrete examples to debunk this unfortunate myth.

How much do you know about concrete? Me, I do not know very much. But, what I learned is, concrete and cement are the third leading producers, of CO2 gas, in the entire world.

Obviously, this means concrete and cement are massive contributors to global warming. This is a very real problem. And, as you know by now, entrepreneurs use innovation to solve problems.

Problems are opportunities. The thing is when people think of innovation they tend to think about new products and services. And they miss enormous categories of opportunity.

While it is true that you can start a business around a new product or service, it is also true that you can innovate around various processes. Let me give you an example.

There exists a company, in the country of Latvia, called Primekss. Primekss was founded, in 1997, on a very simple premise. The premise was to create a more environmentally friendly form of concrete.

In order to do this, the folks at Primekss first looked to history. What they found was that it was the Egyptians who first developed concrete. One of the things the Egyptians (and later the Romans) did was add blood and horse hair to their concrete.

This caused the Primekss people to think about re-engineering the process of creating concrete. The result was their product that made come to be known as PrimeComposite.

PrimeComposite reduces the emission of CO2 by 30-50% (depending on who you ask.) What's more, builders end up using less PrimeComposite than they had traditional concrete. And, PrimeComposite is less likely to crack than old school concrete.

Now, I do not know about you, but, for me, concrete is about the least sexy product in the world. In fact, on Primekss's website, they brag about being boring.

You see, it is okay to not be sexy. Because, properly understood, entrepreneurship is not appeal sex appeal. It is about making the world a better place. Entrepreneurship is about solving real problems. And, the bigger the problem, the bigger the payoff.

As I stated at the start of this post, entrepreneurship is not about great ideas. Entrepreneurship is about problems, solving problems.

Problems come in many shapes and sizes. In the case of concrete, the solution was to redesign the creation process. Not a great, earth-shattering idea. But, a valuable idea nonetheless.


Monday, January 25, 2016

Why a Great Idea Will Never Make You Rich


Over the last couple weeks I have written some simple ideas about being an entrepreneur. The key word being “simple.”

A lot of people (perhaps most) fall for the myth of the great idea. Meaning, people think they could start a business if they could just think of a great idea for a product or service.

Over the next couple weeks I am going to debunk the myth of the great idea. I am going to start, today, with a guest blog.

The other day I read a great blog post, by Robert Kiyosaki, and I figured I would pass it along. The remainder of this blog are the words of Mr. Kiyosaki:

Moving from thinking ideas to building a business

On December 31, 1879, Thomas Edison did his first public demonstration of the incandescent light bulb.

Today, novel (and bright) ideas are often represented by a light bulb. But the reality is that the light bulb wasn't Edison's idea. As Wikipedia explains, “Many earlier inventors had previously devised incandescent lamps, including Alessandro Volta's demonstration of a glowing wire in 1800 and inventions by Henry Woodward and Matthew Evans. Others who developed early and commercially impractical incandescent electric lamps included Humphry Davy, James Bowman Lindsay, Moses G. Farmer, William E. Sawyer, Jospeh Swan, Heinirch Göbel.”

Many of these early light bulbs weren't functional for commercial use. Edison's genius was to discover the commercial application of the light bulb for the masses-and to find a way to make the light bulb commercially viable. When he revealed his light bulb for the first time, he said, “We will make electricity so cheap that only rich will burn candles.” That was his driving force, and the rest was history

Do you need a light bulb idea?

Today, many want-to-be entrepreneurs fall into the trap of thinking they need a new or novel idea, something the market has never seen. This is false thinking that holds many people back.

Great ideas do not need to be new or unique. They just have to be better. Many of the most financially successful people are not necessarily people who have creative ideas. Many of them often just copy other people's ideas and turn the idea into millions or even billions of dollars.

Getting rich off others' ideas

For example, fashion designers watch young kids to see what new fashions they are wearing, and then they mass-produce those fashions.

Bill Gates did not invent the operating system that made him one of the richest men in the world. He simply bought the system from the computer programmers who did invent it and then licensed their product to IBM.

Amazon.com simply took Sam Walton's idea for Walmart and put it on the Internet. Jeff Bezos became rich much more quickly than Sam did.

In other words, who says you need to have creative ideas to be rich? Usually, only those who are still poor.

So, what is the secret then for these entrepreneurs who take others good ideas and make millions? What separates them from the people who had the good ideas in the first place? Simply put, they understood how business works.

Systems make you rich

As a young man, rich dad gave me insight into how to make any idea an asset by applying the right framework. That framework is what I call the B-I Triangle.

The B-I Triangle is a system and a model for building a successful business, and products or ideas are the smallest components of the triangle. When the components of the triangle are strong and working in harmony, nearly any idea or product can be successful.

So, if you want to be a successful entrepreneur and have been chasing down the fabled great idea, I encourage you to stop and instead start focusing on learning all you can about the components of the B-I Triangle. Then, you won't need your own light bulb, you'll just need to see the opportunities others' great ideas present.


Monday, January 18, 2016

How can this be a good thing?


Entrepreneurship is ALL about change. Change is where the opportunity is at. But, it is also a problem.

Undoubtedly you will agree with me when I say people resist and fear change. In fact, humans are hardwired to resist change. The psychological name, for this phenomenon, is the Status Quo Bias.

The Status Quo Bias has been empirically proven. And, what scientists have found is that we value what we have roughly twice as much as what we could have. Stated simply, we do not want to change.

Let me go a little deeper into the problem. The famous philosopher Søren Kierkegaard said life exists in tension. I agree. Allow me to explain.

Another thing you would have to agree with is the old paradox, “The only constant is change.” Change is inevitable. But, just a second ago we agreed that people resist changing. Can you see the tension?

Enter the entrepreneur. One of the main things entrepreneurs do is we help people to make good changes. So, if you wish to be a successful entrepreneur, you need to be comfortable with change. To that end, I have a little exercise for you.

Here is an exercise, I personally use, when faced with change. Whenever I encountered a change, in my life, I ask myself, “How can this be a good thing?”

As the beginning of this blog suggests, change equals opportunity. And, the reality is, you cannot capitalize on change if you do not ask yourself how any given change can be a good thing.

Let me give you two examples. One personal. The other more public.

First off, I use Realtor dot com a lot. Recently, they changed their search function and it kind of messed me up. However, I asked myself, “How can this be a good thing?” And, I kept trying to get the website to work for me.

It took me a little while, but, it turns out the new search method is actually much better, and more effective, for me. Make no mistake, when the site was changed I almost threw in the towel and went elsewhere. The only thing that helped me was the question, “How can this be a good thing?”

Now for my second example. Most of you will probably remember an old service called Napster. Back in 1999 a guy by the name of Shawn Fanning created a file-sharing software that came to be known as Napster.

Napster was the way many people illegally downloaded music. It turned into quite the ordeal. Many people in the music business thought their industry would be destroyed.

In an attempt to salvage their golden goose many record companies, and artists, banded together and started suing the downloaders. What these companies and artists were doing was a rear-guard action. They were trying to protect the past.

But, Apple Computer was smarter than that. The folks at Apple asked themselves some form of my question, “How can this be a good thing?” And, their answer changed everything. Today, iTunes practically owns the music business.

Tension is a reality of life. You are wired to fight against change. And yet, change is one of the few things you can reliably count on.

If you can overcome the Status Quo Bias, and begin to see change as the opportunity it is, you are moving in the direction of successful entrepreneurship. Good luck!


Monday, January 11, 2016

Entrepreneurship Explained Very Simply


What do true entrepreneurs do? They bring valuable innovations to the market.

Innovation is about making things better.

If you want to be an entrepreneur, a good exercise is to always ask yourself, “Can this be done better?”

When you find something that can be improved upon, and sold to people, you have one important hurdle.

You need to test it out.

That is to say, you need to prove there is demand for your concept. Some might call this a “Pilot.”

Get out there and see if people are willing to pay for what it is you have to offer.

If enough people are volunteering to buy what you've got, then it is all about distributing (selling) your product as quickly as possible.

Easy in theory. Difficult in practice.

Good luck!


Monday, January 4, 2016

Revitalizing Oneself


As we all know, the new year is a time of renewal. A time to begin anew. Any regular reader of this blog is familiar with my nearly ridiculous fondness for Peter Drucker. In honor of Profesor Drucker I would like to give this year's first blog to the man himself.

Drucker once wrote an article describing seven experiences that taught him how to grow, to change, and to age–without becoming a prisoner of the past. The contents of this article have been labeled Revitalizing Oneself. The remainder of this blog post are Peters' words.

I was not yet 18 when, having finished high school, I left my native Vienna and went to Hamburg as a trainee in a cotton-export firm. My father was not very happy. Ours had been a family of civil servants, professors, lawyers, and physicians for a very long time. He therefore wanted me to be a full-time university student, but I was tired of being a schoolboy and wanted to go to work. To appease my father, but without any serious intention, I enrolled at Hamburg University in the law faculty. In those remote days--the year was 1927--one did not have to attend classes to be a perfectly proper university student. All one had to do to obtain a university degree was to pay a small annual fee and show up for an exam at the end of four years.

THE FIRST EXPERIENCE
Taught by Verdi

The work at the export firm was terribly boring, and I learned very little. Work began at 7:30 in the morning and was over at 4 in the afternoon on weekdays and at noon on Saturdays. So I had lots of free time. Once a week I went to the opera.

On one of those evenings I went to hear an opera by the great 19th-century Italian composer, Giuseppe Verdi--the last opera he wrote, Falstaff. It has now become one of Verdi's most popular operas, but it was rarely performed then. Both singers and audiences thought it too difficult. I was totally overwhelmed by it. Although I had heard a great many operas, I had never heard anything like that. I have never forgotten the impression that evening made on me.

When I made a study, I found that this opera, with its gaiety, its zest for life, and its incredible vitality, was written by a man of 80! To me 80 was an incredible age. Then I read what Verdi himself had written when he was asked why, at that age, when he was already a famous man and considered one of the foremost opera composers of his century, he had taken on the hard work of writing one more opera, and an exceedingly demanding one. "All my life as a musician," he wrote, "I have striven for perfection. It has always eluded me. I surely had an obligation to make one more try.”

I have never forgotten those words--they made an indelible impression on me. When he was 18 Verdi was already a seasoned musician. I had no idea what I would become, except that I knew by that time that I was unlikely to be a success exporting cotton textiles. But I resolved that whatever my life's work would be, Verdi's words would be my lodestar. I resolved that if I ever reached an advanced age, I would not give up but would keep on. In the meantime I would strive for perfection, even though, as I well knew, it would surely always elude me.

THE SECOND EXPERIENCE
Taught by Phidias

It was at about this same time, and also in Hamburg during my stay as a trainee, that I read a story that conveyed to me what perfection means. It is a story of the greatest sculptor of ancient Greece, Phidias. He was commissioned around 440 b.c. to make the statues that to this day stand on the roof of the Parthenon, in Athens. They are considered among the greatest sculptures of the Western tradition, but when Phidias submitted his bill, the city accountant of Athens refused to pay it. "These statues," the accountant said, "stand on the roof of the temple, and on the highest hill in Athens. Nobody can see anything but their fronts. Yet you have charged us for sculpting them in the round--that is, for doing their back sides, which nobody can see.”

“You are wrong," Phidias retorted. "The gods can see them." I read this, as I remember, shortly after I had listened to Falstaff, and it hit me hard. I have not always lived up to it. I have done many things that I hope the gods will not notice, but I have always known that one has to strive for perfection even if only the gods notice.

THE THIRD EXPERIENCE
Taught by Journalism

A few years later I moved to Frankfurt. I worked first as a trainee in a brokerage firm. Then, after the New York stock-market crash, in October 1929, when the brokerage firm went bankrupt, I was hired on my 20th birthday by Frankfurt's largest newspaper as a financial and foreign-affairs writer. I continued to be enrolled as a law student at the university because in those days one could easily transfer from one European university to any other. I still was not interested in the law, but I remembered the lessons of Verdi and of Phidias. A journalist has to write about many subjects, so I decided I had to know something about many subjects to be at least a competent journalist.

The newspaper I worked for came out in the afternoon. We began work at 6 in the morning and finished by a quarter past 2 in the afternoon, when the last edition went to press. So I began to force myself to study afternoons and evenings: international relations and international law; the history of social and legal institutions; finance; and so on. Gradually, I developed a system. I still adhere to it. Every three or four years I pick a new subject. It may be Japanese art; it may be economics. Three years of study are by no means enough to master a subject, but they are enough to understand it. So for more than 60 years I have kept on studying one subject at a time. That not only has given me a substantial fund of knowledge. It has also forced me to be open to new disciplines and new approaches and new methods--for every one of the subjects I have studied makes different assumptions and employs a different methodology.

THE FOURTH EXPERIENCE
Taught by an Editor-in-Chief

The next experience to report in this story of keeping myself intellectually alive and growing is something that was taught by an editor-in-chief, one of Europe's leading newspapermen. The editorial staff at the newspaper consisted of very young people. At age 22 I became one of the three assistant managing editors. The reason was not that I was particularly good. In fact, I never became a first-rate daily journalist. But in those years, around 1930, the people who should have held the kind of position I had--people age 35 or so--were not available in Europe. They had been killed in World War I. Even highly responsible positions had to be filled by young people like me.

The editor-in-chief, then around 50, took infinite pains to train and discipline his young crew. He discussed with each of us every week the work we had done. Twice a year, right after New Year's and then again before summer vacations began in June, we would spend a Saturday afternoon and all of Sunday discussing our work over the preceding six months. The editor would always start out with the things we had done well. Then he would proceed to the things we had tried to do well. Next he reviewed the things where we had not tried hard enough. And finally, he would subject us to a scathing critique of the things we had done badly or had failed to do. The last two hours of that session would then serve as a projection of our work for the next six months: What were the things on which we should concentrate? What were the things we should improve? What were the things each of us needed to learn? And a week later each of us was expected to submit to the editor-in-chief our new program of work and learning for the next six months. I tremendously enjoyed the sessions, but I forgot them as soon as I left the paper.

Almost 10 years later, after I had come to the United States, I remembered them. It was in the early 1940s, after I had become a senior professor, started my own consulting practice, and begun to publish major books. Since then I have set aside two weeks every summer in which to review my work during the preceding year, beginning with the things I did well but could or should have done better, down to the things I did poorly and the things I should have done but did not do. I decide what my priorities should be in my consulting work, in my writing, and in my teaching. I have never once truly lived up to the plan I make each August, but it has forced me to live up to Verdi's injunction to strive for perfection, even though "it has always eluded me" and still does.

THE FIFTH EXPERIENCE
Taught by a Senior Partner

My next learning experience came a few years after my experience on the newspaper. From Frankfurt I moved to London in 1933, first working as a securities analyst in a large insurance company and then, a year later, moving to a small but fast-growing private bank as an economist and the executive secretary to the three senior partners. One, the founder, was a man in his seventies; the two others were in their midthirties. At first I worked exclusively with the two younger men, but after I had been with the firm some three months or so, the founder called me into his office and said, "I didn't think much of you when you came here and still don't think much of you, but you are even more stupid than I thought you would be, and much more stupid than you have any right to be." Since the two younger partners had been praising me to the skies each day, I was dumbfounded.

And then the old gentlemen said, "I understand you did very good securities analysis at the insurance company. But if we had wanted you to do securities-analysis work, we would have left you where you were. You are now the executive secretary to the partners, yet you continue to do securities analysis. What should you be doing now, to be effective in your new job?" I was furious, but still I realized that the old man was right. I totally changed my behavior and my work. Since then, when I have a new assignment, I ask myself the question, "What do I need to do, now that I have a new assignment, to be effective?" Every time, it is something different. Discovering what it is requires concentration on the things that are crucial to the new challenge, the new job, the new task.

THE SIXTH EXPERIENCE
Taught by the Jesuits and the Calvinists

Quite a few years later, around 1945, after I had moved from England to the United States in 1937, I picked for my three-year study subject early modern European history, especially the 15th and 16th centuries. I found that two European institutions had become dominant forces in Europe: the Jesuit Order in the Catholic South and the Calvinist Church in the Protestant North. Both were founded independently in 1536. Both adopted the same learning discipline.

Whenever a Jesuit priest or a Calvinist pastor does anything of significance--making a key decision, for instance--he is expected to write down what results he anticipates. Nine months later he traces back from the actual results to those anticipations. That very soon shows him what he did well and what his strengths are. It also shows him what he has to learn and what habits he has to change. Finally, it shows him what he has no gift for and cannot do well. I have followed that method for myself now for 50 years. It brings out what one's strengths are--and that is the most important thing an individual can know about himself or herself. It brings out areas where improvement is needed and suggests what kind of improvement is needed. Finally, it brings out things an individual cannot do and therefore should not even try to do. To know one's strengths, to know how to improve them, and to know what one cannot do--they are the keys to continuous learning.

THE SEVENTH EXPERIENCE
Taught by Schumpeter

One more experience, and then I am through with the story of my personal development. At Christmas 1949, when I had just begun to teach management at New York University, my father, then 73 years old, came to visit us from California. Right after New Year's, on January 3, 1950, he and I went to visit an old friend of his, the famous economist Joseph Schumpeter. My father had already retired, but Schumpeter, then 66 and world famous, was still teaching at Harvard and was very active as the president of the American Economic Association.

In 1902 my father was a very young civil servant in the Austrian Ministry of Finance, but he also did some teaching in economics at the university. Thus he had come to know Schumpeter, who was then, at age 19, the most brilliant of the young students. Two more-different people are hard to imagine: Schumpeter was flamboyant, arrogant, abrasive, and vain; my father was quiet, the soul of courtesy, and modest to the point of being self-effacing. Still, the two became fast friends and remained fast friends.

By 1949 Schumpeter had become a very different person. In his last year of teaching at Harvard, he was at the peak of his fame. The two old men had a wonderful time together, reminiscing about the old days. Suddenly, my father asked with a chuckle, "Joseph, do you still talk about what you want to be remembered for?" Schumpeter broke out in loud laughter. For Schumpeter was notorious for having said, when he was 30 or so and had published the first two of his great economics books, that what he really wanted to be remembered for was having been "Europe's greatest lover of beautiful women and Europe's greatest horseman--and perhaps also the world's greatest economist." Schumpeter said, "Yes, this question is still important to me, but I now answer it differently. I want to be remembered as having been the teacher who converted half a dozen brilliant students into first-rate economists.”

He must have seen an amazed look on my father's face, because he continued, "You know, Adolph, I have now reached the age where I know that being remembered for books and theories is not enough. One does not make a difference unless it is a difference in the lives of people." One reason my father had gone to see Schumpeter was that it was known that the economist was very sick and would not live long. Schumpeter died five days after we visited him.

I have never forgotten that conversation. I learned from it three things: First, one has to ask oneself what one wants to be remembered for. Second, that should change. It should change both with one's own maturity and with changes in the world. Finally, one thing worth being remembered for is the difference one makes in the lives of people.

I am telling this long story for a simple reason. All the people I know who have managed to remain effective during a long life have learned pretty much the same things I learned. That applies to effective business executives and to scholars, to top-ranking military people and to first-rate physicians, to teachers and to artists. Whenever I work with a person, I try to find out to what the individual attributes his or her success. I am invariably told stories that are remarkably like mine.


Monday, December 28, 2015

Keep Banging On


Craig Ferguson is one interesting dude. Do you know who he is? He is a comedian who used to be on The Drew Carey Show. But, he is better known for the ten years that he did The Late Late Show.

I think Ferguson is a genius. He is a cool dude to boot. However, about this time last year, The Late Late Show came to an end. For the first segment, of his last show, Ferguson did a musical cover of a song titled “Bang Your Drum” by the Scottish band Dead Man Fall.

In the past year, I must have listened to the song a million times. So, I figured I should pass it along. The video includes quite a number of A-Listers. Check it out! Click here to watch the video on YouTube.

Happy New Year!!

Keep banging on...


Monday, December 21, 2015

Far Niente


A couple weeks ago I wrote a post about the fact that no one is ever doing nothing. The post was titled, “Busy Doing Nothing.” Click here to read it.

What I did not mention, in the previous post, is the fact that the phrase, “Doing nothing,” is a contradiction. Perhaps a paradox, I am not completely sure.

At any rate, there exists a winery, in the Napa area, called “Far Niente.” Which, translated from Italian, basically means, “Doing nothing.” I have enjoyed some lovely wine, from Far Niente, and the name inspired this post.

The mind can be a very wild place. As the old saying goes, “An idle mind is the devil's playground.” It is for this reason people love to stay busy. Even if what they are doing is utterly useless. Soon I will post an interesting article titled, “Addicted to Distraction.” Stay tuned.

Being left alone, to our thoughts, can be quite intimidating. Have you ever thought about that? Have you ever tried to meditate? It ain't easy. That said, I am a huge fan of meditation. I think everyone should do it.

I first learned to meditate back in college. I had heard of the idea and it intrigued me. So, I bought a CD from Andrew Weil and gave it a whirl.

Quieting the mind can be a very difficult thing to do. Perhaps that is exactly what makes the practice so valuable. Meditation might be the best way to learn how to focus.

And, the ability to pay attention is the critical first step in improving the quality experience. That is a key takeaway from Mihaly Csikszentmihalyi's phenomenal book, Flow.

For our purposes, we are not really concerned with improving the quality of experience, per se. If you are an entrepreneur, or a knowledge worker, your work requires some degree of creativity. And, creativity demands that we learn how to integrate information.

For this reason, I believe you need to make time to waste time. Meaning, we need time to reflect. One of the best ways to do this is with a mundane task. Showering would be an example.

That great ideas come to us in the shower has become something of a cliché. It also happens to be true. The reason is that our mind is engaged but it is doing a task that it has mastered.

Newton's First Law tells us that objects in motion tend to stay in motion. This applies to the brain. The recommendation I am making is that you do structured activities. Activities that you know how to do.

Steve Jobs was famous for the walks that he would take. Myself, I like to hike in the hills. Either way, each one of us has certainly “mastered” walking. This engages the mind but leaves plenty of computing power to think of other things.

Lots of people enjoy driving to clear their head. And, if it helps you solve your problems, I say, “Go for a drive.”

All-in-all what I am saying is that we should schedule our ideal time. The time when we do nothing. But, there is a twist.

With all due respect to wine drinkers, for most people, casually enjoying a glass offers no structure or direction. I encourage you to intentionally do easy things that have a beginning and an end.

Walks, hikes, and showering are all great ways to free the mind for integrative thinking. Yard work and doing the dishes might work as well.

I am a believer in the mundane. And, I believe we should not pooh-pooh the ordinary. Properly channeled, mundane tasks can be great opportunities for creative thinking. Provided we pay attention to the times we are far niente.


Monday, December 14, 2015

THE WINNER, AND NEW...!!!


This past weekend was a big one for sports fans. Stick with me, and let me explain, because this post contains a great lesson on effectiveness.

In this post, I will interchangeably use the words effectiveness, success, and achievement. As you might know, the two main things, that impede achievement, are fear and doubt. This post is about doubt.

Have you ever noticed that super-achievers tend to be arrogant? Do not get me wrong, once a person is successful it is smart to feign humility. Warren Buffett is an absolute master at it. But, to achieve high levels of success requires enormous amounts of confidence. Perhaps even arrogance.

The reason is simple. The reason is one word: doubt. On your entrepreneurial journey, doubt will be your ever present companion. And, it is a real pisser because doubt is simultaneously a big thing and a bad. It is a paradox.

Doubt is good when it comes in the form of a healthy skepticism. A healthy does of skepticism will help you sniff out, and avoid, the hucksters. And, let's be honest, there is a lot of snake oil out there.

The bad form of doubt is self-doubt. When things are not working out the way you had planned, doubt will be there to rush in. We euphemistically believe that doubt keeps ego in check. But, the truth is, doubt destroys entrepreneurs.

And, that brings me to this past weekend. Over the weekend, Conor McGregor defeated Jose Aldo to become the UFC featherweight champion. There is a good chance you might have heard about McGregor.


McGregor is obnoxiously confident (to borrow a phrase from Gary Vaynerchuk.) Indeed, many would call Conor cocky. He is. But, is that a problem?

Don't get me wrong, sometimes it seems Conor goes too far. He does talk trash about his opponent. Which is rough. But, the trash talk is meant to gin up controversy, sell more tickets, and make more money. As far as the fight game goes, it can be a smart move.

Aside from the trash talk, is arrogance a problem? Not necessarily. When it comes to effectiveness and entrepreneurship, confidence works much better than doubt. Have you ever heard the saying, "Often wrong, never in doubt"? Pretty wise.

As an aside, I am a big fan of Jim Collins. I think he is a smart dude. But, Collins had led lots of people astray with his notion of “Level 5 Leadership.” If you have not read Good to Great let me summarize and tell you that Level 5 Leadership is about being humble.

Listen, now is neither the time nor place to get into a thorough discussion on the complexities of human beings. Suffice it to say people can be simultaneously confident and humble. To cut to the chase, I disagree with Collins on his conception of leadership.

Leaders might choose to present themselves as humble. But, believe me, under the surface, a successful leader is very confident. If Level 5 Leadership is so necessary, how do we account for people like Steve Jobs and Donald Trump?

Anyhow, back to Conor McGregor. Saturday night Conor took the belt from Jose Aldo. If you are not familiar with mixed martial arts you need to understand that Aldo had not lost a fight in ten years. Ten years! And, Aldo was widely considered the best fighter in the world, pound-for-pound.

I think we have all heard that quote, attributed to Henry Ford, “Whether you think you can, or you think you can't–you're right.” It is mostly true. But, one thing that is certainly true is that you cannot beat the best fighter in the world if you do not believe you can.

Belief, faith, confidence. These are the antidotes to doubt. And, doubt is an insidious problem. For this reason, I think we can forgive people for going too far with the confidence thing.

Life is not black and white. It is a gradient, not unlike a dimmer switch. We need to concern ourselves with tendencies more than absolutes. I am talking about leaning in certain directions. And, if you ask me, when it comes to entrepreneurship, I think it is wise to err on the side of too much confidence rather than too much humility.

Don't be an ass. But, do believe in yourself. Unapologetically. 

Monday, December 7, 2015

Busy Doing Nothing


If you are an entrepreneur, you are a salesperson. Period. Full stop. How does that feel? If you object, we might need to iron your brain out a little bit.

You see, if you are to build a successful business, you must get attention. Lots and lots of attention. On this point, sales trainer Grant Cardone is spot on. Here is an image I took from Cardone's website:


This is where a lot of people fall down. The reasons people fail to get the necessary attention are numerous. Some people do not know how to get attention. Others do not like the idea that they will be judged. While some do not like interrupting people. It is this last reason I wish to focus on in this post.

Let me make an important and unequivocal statement. When you aim to get people's attention you will always be interrupting. Always. That statement is a tautology.

The first job of a salesperson is prospecting. Prospecting is simply the act of searching for something of value. In the case of an entrepreneur, prospecting means searching for customers and distributors.

Recently, Jeb Blount wrote a book titled Fanatical Prospecting. In the book Blount agrees with me. He says that we must always be interrupting people. Let us expound upon the idea.

One way to get attention is with the cold call. For various reasons, a lot people would sooner die than make a cold call. Many do. And, while I do not agree with everything Grant Cardone teaches, one point we definitely do agree on is the value and importance of making cold calls.

Back to my tautological statement. Whenever you endeavor to get a person's attention you will be interrupting that person. To put it in different terms, nobody is sitting around doing nothing.

Think about it. I can think of a great activity which is meant to do nothing. That activity is meditating. However, even people who are meditating are not doing nothing. What are they doing? They are meditating!

As you might be able to tell, I have spent some time thinking about this concept. Can you think of a person who is doing absolutely nothing? It is harder than you might think.

A person who is "Keeping Up with the Kardashians" would appear to be doing nothing. But, what would they say they are doing. They are watching television, of course.

The best example I could come up with, of a person who is busy doing nothing, is the image of a person sitting on their front porch, sipping on a cold glass of iced tea. Now, is that person doing nothing? No! S/he would tell you that s/he is relaxing!

The irony of the whole thing is, what do most people say when you ask what they are doing. “Nothing,” right? It is so funny.

Fun and games aside, it really is true that everyone is always doing something. So, whenever you try to get a person's attention you are necessarily interrupting that person.

And, here we run into a big problem. Most of us were raised to believe that it is rude to interrupt people. That belief is not necessarily true, but we have all been taught it. The problem occurs if we take the lesson too literally.

The fact of the matter is that sometimes it is completely appropriate to interrupt a person. Let us come up with an example. Imagine that a couple of neighbors are chatting it up on one of their driveways. The conversation gets pretty interesting and they lose track of their small children.

Now let us imagine you come walking by and notice that the child has gotten into imminent danger. To take an extreme example, the child is playing with some downed power lines. I do not know if that ever really happens but I want to drive the point home.

What would you do? Would you not interrupt the parent's conversation to ask if that is their child? Of course you would! And, would the parents be upset with the fact that you interrupted? Quite the contrary, it is much more likely that they would thank you for the interruption.

The fact of the matter is, it is completely appropriate to interrupt people. The key is to have something of great value to say. In sales we speak of the importance of relevance. What we have to say is valuable if it is relevant to the prospect's life.

In fact, the company MarketingSherpa found that 92 percent of B2B buyers are open to cold calls if the salesperson is relevant. I think this finding is not too surprising. But, it is nonetheless important and it bears repeating.

I am always amazed at the number of people who flat out refuse to make a cold call. It is sad, really. As I have mentioned, one of the main problems is a fear of interrupting people. And, I hope this blog has done at least something to help allay that irrational fear.

It is important that we all learn how to make a cold call. Because, as Grant Cardone would say, “Strangers have everything you want.” It is a cute little statement. It is easy to remember and it drives home the point.

Personally, I prefer the way sales trainer Mike Bosworth puts it. Bosworth says we need to be searching for latent pain. This is especially true of entrepreneurs. True entrepreneurs solve new problems, or fix existing problems in new ways. Either way you will need to get attention. You will need to interrupt people.


Monday, November 30, 2015

The Surprising Difference Between Careerism and Leadership


Coming off of our weeks long discussion about Stephen Covey's effectiveness I thought I would mix it up. This week I want to give you a guest post. The rest of this post was written by Bill George who is a professor at the Harvard Business School.

In my new book, Discover Your True North, I challenge readers to ask themselves this key question: Are you leading with purpose or just trying to get ahead?

Do you actually believe in something larger than your compensation, your career trajectory or your next success?

I often tell young leaders, if their work has no meaning or satisfaction, they are better off quitting and sitting on the beach until they decide what they want to do.

Many people's work is completely disconnected from their values and their purpose. This lack of purpose isn't something to deal with by working with a nonprofit in your spare time. If you don't take action to address this disconnect, it can become like an insidious cancer that eats at your soul. Long-run, a lack of purpose can lead to burnout, poor decision-making and even moral derailment.

Understanding Your Purpose

Your purpose is the genuine deeper meaning in your work. It reflects why you do what you do.

Understanding your purpose is essential to becoming a better leader. People who lead with a sense of purpose that is aligned with their company's purpose make better long-term decisions and are more authentic.

But this is not as easy as it sounds. Discerning your purpose takes a combination of introspection and real-world experiences before you can determine where you want to devote your energies.

The first step to knowing your purpose is to understand your life story. We all face times of crisis, pain or rejection in our lives. Reflecting on the life you've lived helps you to discover your True North - the beliefs, values and principles most important to you.

Before you take on a leadership role, ask yourself: "What motivates me to lead this organization?" If the honest answers are simply power, prestige and money, you are at risk of being trapped by external gratification as your source of fulfillment.

This never works. Why? Simply, you can never have enough money, fame or recognition. When you give someone else the power to decide if you're successful (whether it's the Forbes 400 list or an invitation to Davos), you lose. If you allow some external force to define your success, you have essentially abdicated your soul.

There is a deep voice inside you that yearns to bring your unique gifts to this world. If you neglect that voice, you create deep misalignments that eventually will surface.

Purpose at Work

Ken Frazier traveled a unique road en route to becoming CEO of Merck, the leading pharmaceutical research company. Born before the 1863 Emancipation Proclamation, Frazier's grandfather was a slave in South Carolina. He sent his son, Frazier's father, to live in Philadelphia. With no formal education, Frazier's father became a janitor, yet taught himself to read, reading two newspapers a day. In spite of his limited opportunities, he had a profound influence on Frazier's life.

After his mother died when he was 12, Frazier and his sisters had to fend for themselves after school, avoiding the gangs that dominated the streets outside his house. "I learned very early from my father that one has to be one's own person and not go along with the crowd," Frazier says. His father asked him, "Kenny, how are you going to carry on your grandfather's narrative of being free and your own person? You better do what you know is right, and not be fixated on what other people think of you.”

While studying at on Penn State scholarship, Frazier decided he wanted "to become a great lawyer like Thurgood Marshall, affecting social change." At Harvard Law School, he was acutely aware he wasn't from the same social class as his classmates. He wryly notes, "Lloyd Blankfein [CEO of Goldman Sachs] and I were the only students who 'were not of the manor born.”

Shortly after he joined Merck, Frazier took on the extremely difficult task of defending Merck from over 40,000 lawsuits filed after the pain drug Vioxx was withdrawn from the market due to alleged cardiovascular problems. Frazier did so successfully, catapulting him into the CEO's chair where he faced a greater challenge: short-term shareholders pressured him to cut back Merck's research as several of its competitors were doing. Frazier stayed the course, committing to spend a minimum of $8 billion per year on research in order to pursue cures for devastating diseases like cancer and Alzheimer's.

Reflecting on his sense of purpose, Frazier explains, "Merck's purpose is aligned with my personal sense of who I want to be and what I hope to contribute to the world. At Merck, you have the opportunity to make tangible contributions to humanity. There's a yearning in all of us to leave something meaningful behind, because we know we have a short time on earth. Merck gives me the chance to leave something to people 20, 50 or even 100 years from now because we did the right things today.”

Asked what his father would say about his remarkable success, Frazier says modestly, "He'd say, 'The boy did what he was supposed to do.'”

Turning Purpose Into Action

Your leadership purpose is not meaningful until it is applied to solving problems you encounter in the real world. When you align your personal purpose with an organization's mission, you unlock the full potential of people in the organization.

That's what I tried to do at Medtronic where we connected employees' True North with the company mission of "restoring health, alleviating pain and extending life." My successors, especially current CEO Omar Ishrak, have pursued this mission with vigor, contributing to the 100 times increase in the company's market value over the past 26 years. More importantly, the number of people each year restored to full health has grown from 300,000 to 15 million.

As long as you focus on your True North, understand your purpose and use it to make a difference in the world, you can leave a legacy that inspires those who follow.


Monday, November 23, 2015

Sharpen the Saw


This week is the last of Stephen Covey's 7 Habits of Highly Effective People. If you recall, from earlier, the first three habits were characterized as “Private Victories.” And, the second three habits Covey called “Public Victories.” As one might expect, the private victories come before the public victories.

This final habit is all-encompassing and universal. The idea comes from that old anecdote which says, if you have five hours to chop down a tree, four of those hours should be spent sharpening your saw.

We all know that without effort it is virtually impossible to stay sharp. Covey writes, “As soon as we leave the external discipline of school, many of us let our minds atrophy.” I believe this is a rather unfortunate mistake. To counter this natural tendency to atrophy I like a quote I once heard. The quote said, “The only time you can coast is when you are going downhill.”

For most of us, it takes a crisis for us to work on improving ourselves. Knowing this, Thomas Jefferson is quoted as saying, “Every generation needs a revolution.” But, Jefferson was being overzealous.

I agree with Peter Drucker who said, “We now know that 'revolution' is a delusion...It results from senile decay, from the bankruptcy of ideas and institutions, from failure of self-renewal.” Alexis de Tocqueville pointed out that revolutions do not demolish the prisons of the old regime; they enlarge them.

To my way of thinking, staying sharp, self-renewal, entrepreneurship, and growth are all virtually synonymous. Entrepreneurship is fundamentally about renewal. It is about constant, never-ending improvement. It is about growth, which I believe is life's imperative.

I talk a lot about my love for Peter Drucker. But, if I had to pick one book, as my favorite of all time, it would probably be Flow by Mihaly Csikszentmihalyi. As it turns out, Csikszentmihalyi used to teach at the same school as Drucker. Actually, Mihaly is still there though Peter has passed.

There are so many important lessons to take away from the book Flow. However, for our purposes today, I wish to point out one lesson in particular. If you really understand what Csikszentmihalyi is saying, you realize that growth is the imperative of life.

If you will allow me to get nerdy for a minute, I would like to make a quick reference to physics. The Second Law of Thermodynamics is a governing principle of the cosmos. Without getting too deep into it, just understand that the second law has to do with a concept known as entropy.

To put it in lay terms, entropy is practically synonymous with the words decay and death. If you truly understand entropy, you realize that life exists because it can. And, life is completely dependent on growth. It is like what the character Andy said in the move The Shawshank Redemption. We need to either, “Get busy living, or get busy dying.”

Sharpening the saw is the living part. It is growth. You may know the name Ray Kroc from McDonald's fame. Kroc put it this way, “As long as you are green, you are growing. As soon as you are ripe, you start to rot.” In slightly different terms, Steve Jobs said, “Stay hungry. Stay foolish.”

However you wish to think of it, growth is the imperative and we must always sharpen our saw. Covey states, “I commend to you the simple practice of spending one hour a day every day doing it – one hour a day for the rest of your life.” Sounds good to me.