As an entrepreneur you will typically get advice like, “Fail fast and fail often.” I always found this somewhat amusing, similar to the saying, “It takes money to make money” (a lot of bad investments are made using that philosophy). Living this yourself is an amazing experience – especially when things turn out well. But as I have written about before, you learn as much from the good experiences as you do from the bad ones.
Innovating is tough. You need people who are always thinking of different and better ways of doing things, or who question why something has to be done or made a certain way. It takes confidence to ask questions that many would view as stupid (“Why would you do that, it’s always been done this way.”) But, when you have the right mix of people and culture, amazing things can and do happen, and it feels great.
Innovating also takes a willingness to lose time and money, with the hope of winning something big enough later to make it all worthwhile. This is where a lot of companies fall short because they lack the patience, budget, or appetite to fail. I personally believe that this is the reason why innovation often flows from small companies and small teams. For them, the prospect of doing something really cool or making a big impact is motivation enough to give something a try.
It takes a lot of discipline to follow a plan when a project appears to be failing, but it takes even more discipline to kill a project that has demonstrated real potential but isn’t meeting expectations. That was one of my first, and probably most important lessons learned in this area. Let me explain…
In 2000 we looked at franchising our “Consulting System” – processes, procedures, tools, metrics, etc. that had been developed and proven in my business. We believed that this approach could help average consultants deliver above average work products. The idea seemed to have real potential.
It took a lot of work finding an attorney who would even consider this idea. Most believed it would be impossible to proceduralize a somewhat ambiguous task like solving a business or technical problem. We finally found an attorney who, after a 2-hour no-cost interview, agreed to work with us. When I later asked him about his approach, he replied “I did not want to waste my [his] time or our money on a fool’s errand.”
We estimated it would take 12 months and cost approximately $100,000 to fully develop our consulting system. We met with potential prospects to validate the idea (it would have been illegal to pre-sell the system) and then got to work. Twelve months turned into 18, and the original $100K budget increased nearly 50%. All indications were positive and we felt very good about the success and business potential for this effort.
Then, the terror attacks occurred on Sept. 11th and businesses everywhere saw a decline. In early 2002 we reevaluated the project and felt that it could be completed within the next 6-8 months and would cost another $50K+.
After a long and emotional debate we decided to kill the project – not because we felt it would not work, but rather because there was less of a target market and now the payback period (time to value) would double or triple. This was one of the most difficult business decisions that I ever made.
A big lesson learned from this experience was that our approach needed to be more analytical.
- From that point forward we created a budget for “time off” (we bought our own time, as opposed to waiting for bench time) and for other project related items.
- We developed a simple system for collecting and tracking ideas and feedback. When an idea felt right we would take the next steps and create a plan with a defined budget, milestones, and timeline. If the project failed to meet any of the defined objectives it would be killed – No questions asked.
- We documented what we did, why we decided to do it, our goals, and expected outcomes. Regardless of success or failure we would have postmortem reviews to learn and document as much as possible from every effort.
We still had failures, but with each one we took less time and spent less money. More importantly, we learned how to do this better, and that helped us realize several successes. It provided both the structure and the freedom to create some amazing things. And, since failing was an acceptable outcome it was never feared.
This approach was much more than just, “failing fast and failing often,” it was intelligent failure, and it served us well for nearly a decade.
My son is playing basketball this year (previously he played football and soccer), and recently we went shopping for new shoes. Each store had pictures of Michael Jordan. I used to love watching MJ play with the Chicago Bulls. He was the epitome of skill and professionalism. To this day he inspires me.
Some people are just naturally talented, but even they need to work hard to achieve their full potential. Hard work is an important aspect of being the best of anything, but it takes more than that. It takes doing things in a manner that allows you to continuously improve, as well as a positive mindset and a commitment to success. Once people reach that level of high performance their job begin to look easy, and they may even appear to be “naturals” – just like Mike. But that is just the tip of the iceberg.
Most of my career changes have been unplanned. Opportunities presented themselves, the job seemed interesting, and before I knew it I was fully immersed in something related but different. The potential reward outweighed the real risk.
Many of these things have not come naturally to me. Each time I have focused on understanding the requirements for doing the job well, then looked for examples of exceptional performance, and finally created a systematic approach that allowed me to measure performance and identify areas of improvement on an ongoing basis. From then on it was analyzing my results, thinking daily about even the smallest improvements, and then trying to do even better the next day.
Good enough was never good enough. Introspection can challenging so one thing that I have done is to take time to celebrate wins and intentionally focus on remembering how that feels. In times of stress or frustration those memories can be motivational and help you back on track quickly.
Sales has been a large part of my consulting management jobs since the mid-1990’s, but it wasn’t until I owned my own company that this became a true priority. I ran across a good book, The Accidental Salesperson by Chris Lytle. Back then Chris Lytle had “MAX Training,” and a large part of their focus was increasing your “level” with regard to Prospect and Client relationships. The training was good, and was complementary to systems like Miller Heiman.
What each of these systems do is help you prepare, plan, and then execute to the best of your ability. And just like basketball, it takes practice to master. But, with mastery comes success and the illusion that something is easy (or that you happen to be very lucky). The Seneca quote, “Luck is what happens when preparation meets opportunity” is so true.
Regardless of the system used, what is most important is that you are trying to be the best at is to look at both positive and negative examples to see what you can learn from them. There are lessons to be learned everywhere! Understanding what makes it good or bad helps you improve as part of an ongoing process of improving.
Incorporating new tools and techniques into what has already been proven to work will help you improve your game. Going back to the sports analogy, this could be part of what made Michael Jordon so good. He would see something interesting, improve it, and then make it his own.
For example, I get a lot of really horrible sales calls and email. The people have obviously not done any preparation, do not know anything about me or the company I work for, and often remind me of why I stopped listening to them by referring to the number of times they have tried contacting me. On the other hand, there are some really talented sales professionals who have done their homework, understand their products and the competition, and have an understanding about why what they are selling should matter to me – and are able to articulate that quickly and confidently. I speak with them and occasionally buy from them. And in either case I provide my team with real life examples of both good and bad sales techniques.
So, think of the best example of whatever it is you do, and see what you can do to become more like them. This isn’t about imitation, but rather about uncovering the secrets of their success and learning from them. And, have some fun doing it!
I learned many valuable lessons over the course of the 8+ years that I owned my consulting business. Many were positive, a few were negative, but all were educational. These lessons shaped my perceptions about and approaches to business, and have served me well. This post will just be the first of many on the topic.
My lessons learned covered many topics: How to structure the business; Business Goals; Risk; Growth Initiatives and Investment; Employees and Benefits; Developing a High-Performance Culture; Marketing and Selling; Hiring and Firing; Bringing in Experts; Partners and Contractors; The need to let go; Exit Strategies and more.
In my case these lessons learned were compounded by efforts to start a franchise for the consulting system we developed, and then our expansion to the UK with all of the challenges associated with international business.
It’s amazing how more significant those lessons are (or at least feel) when the money is coming out of or going into “your own pocket.” Similar decisions at larger companies are generally easier, and (unfortunately) often made without the same degree of due diligence. Having more “skin in the game” does make a difference when it comes to decision making and risk.
Businesses are usually started because someone is presented with a wonderful opportunity, or because they feel they have a great idea that will sell, or because they feel that they can make more money doing the same work on their own. Let me start by telling you that the last reason is usually the worst reason to start a business. There is a lot of work to running a business, a lot of risk, and many expenses that most people never consider.
I started my business because of a great opportunity. There were differences of opinion about growth at the small business I was working for at the time, and this provided me with the opportunity to move in a direction that I was more interested in (shift away from technical consulting and move towards business / management consulting). Luckily I had a customer (and now good friend) who believed in my potential and the value that I could bring to his business. He provided both the launch pad and safety net (via three month initial contract) that I needed to embark on this endeavor. For me the most important lesson learned is to start a business for the right reasons.
More to come. And, if you have questions in the meantime just leave a comment and I will reply. Below are some of the statistics on Entrepreneurship that can be pretty enlightening:
When I started consulting an experienced consultant told me, “The best Consultants are experts at becoming Experts.” I started my consulting career with that goal in mind. After a few years realized that, “Good consults are people who can learn enough quickly to ask intelligent questions and then connect the dots faster.” This is a great skill for anyone to have regardless of the industry or business.
It’s impossible to be an expert at everything. I believe that it is important to have great depth in a few areas (true expertise), and breadth of knowledge in many areas (enhancing context and insight). Both types of knowledge alone are valuable, but combined they add a dimension that I believe allows a person to be far more effective and potentially much more valuable because it leads to having the ability to pick-up on the dependencies and nuances that others miss.
Just think – How much more effective a salesperson is that understands technology and project management concepts when working to demonstrate fit and create a sense of urgency. Or, an Attorney that understands the complexity of service offerings and delivery – enhancing their ability to construct agreements that are highly protective yet not overly complex or onerous. Or, a programmer that thinks beyond the requirements and looks for ways to improve or simplify the process. Extra knowledge helps with the big picture understanding, and that often leads to providing more value by “thinking outside the box.” Additional knowledge and skills almost always help us become more effective, regardless of what we may be doing.
Increased knowledge, combined with a desire to do amazing things, creates opportunities to make a huge and immediate impact. Sometimes it is because you are asking the questions that others may be thinking but simply cannot articulate in a clear manner. It helps you see the gaps and holes that others miss. And most importantly, it helps you “connect the dots” before others do (often many months before something obvious to you becomes obvious to others). A large consultancy once used the phrase “seeing around corners” as their attempt to make this concept tangible.
So, if you buy into the concept that knowledge is good, the next question is usually, “What is the best way to learn?” People learn in different ways so there really is no one single best way to learn. Understanding how you learn best will help you learn faster.
I’m a fan of reading. A good book may reinforce ideas you already know, may introduce you to a few concepts or ideas that seem like they could help (giving you something to test), and often present many ideas that you know or feel just won’t work. Just don’t become one of those people who changes their beliefs and approach with every book they read (or what I refer to as “The book of the month club manager.“)
I’m also a fan of hands-on learning. The experience of doing something the first time is important. Keeping detailed notes (what works, what doesn’t make sense and what you did to figure it out, work-arounds, etc.) enhances the value of that experience. It’s amazing what you can learn when you “get your hands dirty.”
What about formal education? I’ve never been a fan of the person who wants to get a degree in order to get a promotion. There are certainly some professions where education is critical to success (often through legitimacy as much as anything else). My advice to people is to work towards a specific degree because it is important as a personal goal, and because it could possibly help you get a different or better job in the future. I will never criticize anyone for learning, going to school, or getting another certification or degree.
My personal belief is that the best way to get ahead is to learn the position, innovate, optimize, and then deliver incredible results. You won’t “knock it out of the park” every time, but those “base hits” will help you score and ultimately win.
This is not to say that formal education is bad, because I don’t believe that at all. I was working on my MBA at the same time I was expanding my consulting business from the US to the UK. I had a concentration in International Business, so I could apply many things I was learning right away. This bit of serendipity both enhanced my learning experience and helped me make better decisions that had real implications to my business. The funny thing was that I was actually working on that degree to raise the bar for my own children, so for me this was just a bonus.
There are also other great ways to learn – ways that are only require an investment of your time. There are many good free online courses. If there is something you are interested in learning or need to know more about, there is almost always a place to find free or low cost training. These are great investments in yourself and your future, and may help you learn to connect those dots faster.
Below are links to a few good free learning websites. Do yourself a favor and check them out. And, if you know of others leave a comment and recommend them to others. Enjoy!
During a very candid review years ago, my boss at the time (the CEO of the company) made a surprising comment to me. He said, “Good ideas can be like diamonds – drop them once in a while and they have a lot of value. But, sprinkle the everywhere you go and they just become a bunch of shiny rocks.” This was not the type of feedback that I was expecting, but it turned out to be both insightful and very valuable.
For a long time I have held the belief that there are four types of people at any company: 1) People who want to make things better; 2) People who are interested in improvement, but only in a supporting role; 3) People who are mainly interested in themselves (they can do great things, but often at the expense of others); and 4) People that that are just there and don’t care much about anything. This opinion is based on a working and consulting at many companies over a few decades.
A recent Gallup Poll stated Worldwide only 13% of Employees are “engaged at work” (the rest are “not engaged” or “actively disengaged”). This is a sad reflection of employees and work environments if it is true. Since it is a worldwide survey it may be highly skewed by region or industry, and therefore not indicative of what is typical across the board. Those results were not completely aligned with my thinking, but was interesting nonetheless.
So, back to the story…
Prior to working at this company I had run my own business for nearly a decade, and was a consultant for 15 years working at both large corporations and startups. I am used to taking the best practices learned from other companies and engagements, and then incorporating them into our own business practices to improve and foster growth.
I tend to take a systemic view of business and see the importance of having all components of “the business machine” optimized and working in harmony. Improvements in one area ultimately have a positive impact in other areas of the business.
While I was trying to be helpful, I was being insensitive to the fact that my “friendly suggestions based on past success” stepped on other people’s toes, and that was creating frustration for the people that I was intending to help. By providing simple solutions to their problems it reflected poorly on my peers. In hindsight this should have led to increased collaboration among the executive team.
Suggestions and examples that were intended to be helpful had the opposite effect. Even worse, it was probably just as frustrating to me to be ignored as it was to others to have me infringe on their aspect of the business. The resulting friction was very noticeable to my boss.
Had I been an external consultant, those same ideas (“diamonds”) may have been considered. But as part of the leadership team I was coming across as one of those people who were just interested in themselves (leaving “shiny rocks” laying around for people to ignore or possibly trip over).
Perception is reality, and my attempts to help were hurting me. Luckily, I received this honest and helpful feedback early in this position and was able to turn those perceptions around.
What are the morals of this story?
First, people who are engaged have the greatest potential to make a difference. Part of being a business leader is making sure that you have the best possible team, and are creating an environment that challenges, motivates, and fosters growth and accountability.
Disengaged employees or people who are unwilling or unable to work with/collaborate with others may not be your best choices regardless of how talented they may be. They could actually be detrimental to the overall team dynamics.
Second, doing what you believe to be the right thing isn’t necessarily the best or right way to approach something. Being sensitive of the big picture and testing whether or your input is being viewed as constructive was a big lesson learned for me. If you are not being effective then consider that your execution could be flawed. Self-awareness is very important.
And third, use your own examples as stories to help others understand potential solutions to problems in a non-threatening way. Let them make the connection to their own problems, thereby helping them become more effective and allowing them to save face. It is not a competition. And, if someone else has good ideas, help support them through collaboration. In the end it should be more about effectiveness, growth, and achievement of business goals than who gets the most credit.
While this seems like common sense to me now, my background and personal biases blinded me to that perspective.
My biggest lesson learned was about adaptation. There are many ways to be effective and make a difference. Focus on understanding the situation and its dynamics in order to employ the best techniques, as that is ultimately critical to the success of the team or organization.