Month: October 2013
Things that make you go hmmm
This week I read a story about Astronomers finding a new, free-floating planet (PSO J318.5-22). What I loved about this story is that the planet defies the definition of a planet, as it does not orbit a star. It’s something that shouldn’t exist, or at least something that exists outside the current astronomical framework.
It’s funny how you grow up being taught what is right and how things should work. While knowledge and understanding are good, they can also be limiting. When you just know something should not work, it becomes easy to accept that and move on. It can be a real innovation killer.
Occasionally, something new, different, and sometimes even inconsequential comes around and makes a big difference. Think about Apple’s iTunes. It was created merely as a means to sell iPods. Critics said it would never work. But, it created a paradigm shift in how people consumed and purchased music and video content. Now it is one of the fastest growing businesses within Apple.
Or, think about Twitter. An idea for a microblogging service to send text messages to a group of friends. Now news is reported via tweets, and social media of all types use hashtags to create communities and generate buzz. Something that should have been almost nothing has become powerful and important.
People who know me or have worked for me have often heard this saying: “Don’t give me the 10 reasons why something won’t work; Instead, find the one or two ways that it might work, and let’s go from there.” This statement sets a simple yet very important expectation.
Most people spend a lot of time and effort finding ways to prove that things will or should fail. I find that very frustrating. But, get the right people with the right mindset, and you can do some pretty amazing things. And, like Post It® notes, you might create something really cool that was completely unexpected. But you will never know if you don’t even get started.
So, actively look for examples of products or services that broke the rules. Try to understand the genesis of those ideas. And, the next time you think that something is impossible, remember PSO J318.5-22
Spurious Correlations – What they are and Why they Matter
In an earlier post, I mentioned that one of the big benefits of geospatial technology is its ability to show connections between complex and often disparate data sets. As you work with Big Data, you tend to see the value of these multi-layered and often multi-dimensional perspectives of a trend or event. While that can lead to incredible results, it can also lead to spurious data correlations.
First, let me state that I am not a Data Scientist or Statistician, and there are definitely people far more expert on this topic than myself. But, if you are like the majority of companies out there experimenting with geospatial and big data, it is likely that your company doesn’t have these experts on staff. So, a little awareness, understanding, and caution can go a long way in this scenario.
Before we dig into that more, let’s think about what your goal is:
- Do you want to be able to identify and understand a particular trend – reinforcing actions and/or behavior? –OR–
- Do you want to understand what triggers a specific event – initiating a specific behavior?
Both are important, but they are both different. My focus has been identifying trends so that you can leverage or exploit them for commercial gain. While that may sound a bit ominous, it is really what business is all about.
A popular saying goes, “Correlation does not imply causation.” A common example is that you may see many fire trucks for a large fire. There is a correlation, but it does not imply that fire trucks cause fires. Now, extending this analogy, let’s assume that the probability of a fire starting in a multi-tenant building in a major city is relatively high. Since it is a big city, it is likely that most of those apartments or condos have WiFi hotspots. A spurious correlation would be to imply that WiFi hotspots cause fires.
As you can see, there is definitely the potential to misunderstand the results of correlated data. A more logical analysis would lead you to see the relationships between the type of building (multi-tenant residential housing) and technology (WiFi) or income (middle-class or higher). Taking the next step to understand the findings, rather than accepting them at face value, is very important.
Once you have what looks to be an interesting correlation, there are many fun and interesting things you can do to validate, refine, or refute your hypothesis. It is likely that even without high-caliber data experts and specialists, you will be able to identify correlations and trends that can provide you and your company with a competitive advantage. Don’t let the potential complexity become an excuse for not getting started. As you can see, gaining insight and creating value with a little effort and simple analysis is possible.
Acting like an Owner – Does it matter?
One of the biggest changes to my professional perspective on business came during the time that I was running my own consulting business. Prior to that, I had worked as an employee for midsize to large companies for ten years and then as one of the first hires at a start-up technology company. I felt that doing hands-on work, managing, selling, and helping establish a start-up (where I did not have an equity stake) provided everything needed to start my own business.
Well, guess what? I was only partially correct. I was prepared for the activities of running the business but really was not prepared for the responsibility of running a business. While this seems like it should be obvious, I’ve seen many business owners whose primary focus is on growth/upside activities and not the day-to-day. That type of optimism is important for entrepreneurs – without it, they would not bother putting so much at risk.
People tend to adopt a different perspective when making decisions once they realize that every action and decision can impact the money moving into and out of their own wallets.
Even in a large business, you can usually spot the people who have taken these risks and run their own business. I was responsible for a Global Business Unit with $60+ million in annual sales and ran it like a “business within a business” because I had P&L responsibilities, and the decisions I made mattered to the success of my business unit.
It’s more than just striking out on your own as a contractor or sole proprietor. I’m talking about the people who have had employees, invested in capital equipment and went all-in. These are the people thinking about the big picture and the future.
What do these people do differently than those without this type of experience?
One of the biggest things is they view business as “good business” and “bad business.” Not all business is good business, and not all customers are good customers. There needs to be a fair commercial exchange where both sides receive value, mutual respect, and open communication. You know this works when your customers treat you like a true partner (a real trusted advisor) instead of just a vendor, or at least do not try to take advantage of you (and vice-versa).
A business is in business to make money, so if your work is not profitable, you should not do it. And, if you are not delivering value to an organization, it is very likely that you would be better off spending your time elsewhere – building your reputation and reference base within an organization that was a better fit. While that may not be true for all business endeavors (think how long it took Amazon to become profitable and where they are now), it generally is true for employees at all levels.
“Bad” salespeople (who may very well regularly exceed their quotas) only care about the sale and their commission – not the fit, the customer’s satisfaction, or the effort required to support that customer. Selling products and services people don’t need, charging too little or too much, and making promises they know will not be met are typical signs of a person who does not think like an owner. Their focus is on the short-term and not on growing accounts. As an aside, their compensation plans generally only reward net new business and first-time sales, so these actions may not be completely their fault.
How you view and treat employees is another big difference. Unfortunately, even business owners do not always get this right. I believe that employees are either viewed as Assets (to be managed for growth and long-term value) or Commodities (to be used up and replaced as needed – usually treated as fungible, as if they are easily replaceable). Your business is usually only as good as your employees, so treating them well and with respect creates loyalty, and results in higher customer satisfaction.
Successful business owners usually look for the best person out there, not just the most affordable person who is “good enough” to do the job. The flip side is that you quickly need to weed out the people who are not a good fit. Making good decisions quickly and decisively is often a hallmark of a successful business owner.
Successful business owners are generally more innovative. They are willing to experiment and take risks. They reward that behavior. They understand the need to find a niche where they can win and provide goods and/or services tailored to those specific needs.
Sometimes this means specialization and customization, and sometimes it means personalized attention and better support. Regardless of what is different, these people observe the small details, understand their target market, and are good at defining a message articulating those differences. These are the people who seem to be able to see around corners and anticipate both problems and opportunities. They do this out of necessity.
Former business owners are usually more conscientious about money, taking a “my money” perspective on sales and expenses. Every dollar in the business provides safety and opportunity for growth. These usually are not the people who routinely spend hundreds or thousands of dollars on business meals or who take unnecessary or questionable trips to nice places. Money saved on unnecessary expenses can be invested in new products, features, or marketing for the benefit of an organization.
While these are common traits found in successful business owners, it is possible to develop them even if you have never owned a business.
When selling, are you focused on delivering value, developing a positive reputation within that organization and with your customers, and profiting from long-term relationships? When delivering services, is your focus on delivering what has been contracted – and doing so on time and within budget? Are your projects used as examples of how things should be done within other organizations? Are you spending money on the right things – not wasteful or extravagant things?
These are things employees at all levels can do. They will make a difference and help you stand out. That opens the door to career growth and change. And it may get you thinking about starting the business you have always dreamed of. Awareness and understanding are the first steps towards change and improvement.
There’s a story in there – I just know it…
I was reading an article from Nancy Duarte about Strengthening Culture with Storytelling, and it made me think about how important a skill storytelling can be in business and how it can be far more effective than just presenting facts and data. These are just a few examples. You probably have many of your own.
One of the best salespeople I’ve ever known wasn’t a salesperson at all. It is Jon Vice, former CEO of the Children’s Hospital of Wisconsin. Jon is very personable and has the ability to make each person feel like they are the most important person in the room (quite a skill in itself). Jon would talk to a room of people and tell a story. Mid-story, you were hooked. You completely bought what he was selling, often without knowing what the “ask” was. It was an amazing thing to experience.
Years ago, when my company was funding medical research projects, my oldest daughter (then only four years old) and I watched a presentation on the mid-term findings of one of the projects. The MD/Ph.D. giving the presentation was impressive, but what he showed was slide after slide of data. After 10-15 minutes, my daughter held her Curious George stuffed animal up in front of her (where the shadow would be seen on the screen) and proclaimed, “Boring!”
Six months later, that same person gave his wrap-up presentation. It was short and told an interesting story that explained why these findings were important, laying the groundwork for a follow-on project. A few years later he commented that his initial presentation became a valuable lesson. That was when he realized the story the data told was far more compelling than just the data itself.
A few years ago, the company I work for introduced a high-performance analytics database. We touted that our product was 100 times faster than other products, which happened to be a similar message used by a handful of competitors. In my region, we created a “Why Fast Matters” webinar series and told the stories of our early Proof of Value efforts. This helped my team make the first few sales of this new product and change the approach the rest of the company used to position this product. People understood our value proposition because these success stories made the facts tangible.
I tell my teams to weave the thread of our value proposition into the fabric of a prospect’s story. This makes us part of the story and makes this new story their own (as opposed to our story). This simple approach has been very effective.
What if you not selling anything? Your data tells a story – even more so with big data. Whether you are analyzing data from a single source (such as audit or log data) or correlating data from multiple sources, the data has a story to tell. Whether patterns, trends, or correlated events – the story is there. And once you find it, there is so much you can do to build it out.
Whether you are selling, managing, teaching, coaching, analyzing, or just hanging out with friends or colleagues, being able to entertain with a story is a valuable skill. It is also a great way to make many things more interesting and memorable in business. So, give it a try.
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