Life
Failing Productively
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 always think of different and better ways of doing things or question why something has to be done or made a certain way. It means shifting away from the “how” and “why” and focusing on the “what” (outcomes). 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 takes a willingness to lose time and money, hoping to win something big enough later to make it all worthwhile. This is where many companies fall short because they lack the patience, budget, or appetite to fail. I believe this is why innovation often comes from small companies and small teams. For them, the prospect of doing something cool or making a big impact is motivation enough to try something, and the barriers to getting started are often much lower.
It also 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., developed and proven in my business. We believed this approach could help average consultants deliver above-average work products in less time. The idea seemed to have real potential.
Finding an attorney who would even consider this idea took a lot of work. 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 asked 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 of 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+. Our confidence was high.
After a long and emotional debate, we decided to kill the project – not because we felt it would not work, but 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, rather than waiting for bench time) and other project-related items.
- We developed a simple system to collect and track ideas and feedback. When an idea felt right, we took the next steps and created a plan with a defined budget, milestones, and timeline. If the project failed to meet any defined objectives, it would be killed – No questions asked.
- We documented what we did, why we did it, our goals, and expected outcomes and timelines. Regardless of success or failure, we would conduct postmortem reviews to learn and document as much as possible from every effort and investment.
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, which enhanced our resilience and helped us realize several successes. It gave us both the structure and the freedom to create amazing things. Since failure was an acceptable outcome, we never feared it.
This approach was more than just “failing fast and failing often”; it was “intelligent failure,” and it served us well for nearly a decade.
Doing it like Mike
My son is playing basketball this year (he previously played football and soccer), and we recently 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 naturally talented but must still work hard to achieve their full potential. Hard work is an important aspect of being the best at anything, but it takes more than that. It takes doing things in a way that allows you to continuously improve, along with a positive mindset and a commitment to success. Once people reach that high-performance level, their jobs look easy, and they may even appear to be a “natural” – just like Mike. But that is just the tip of the iceberg.
Most of my career changes have been unplanned. For example, in 2010, our VP of Sales was fired, and the guy intended to fill the slot quit to go work for Salesforce.com. We had our sales kickoff less than five days away, and nothing was planned yet. The SVP of Sales told me that if I wanted the job, he would give me six months. But if I didn’t cut it at the end of six months, no other job would be waiting for me.
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 focused on understanding the requirements for doing the job well, then looked for examples of exceptional performance, and finally created a systematic approach that let me measure performance and identify areas for improvement on an ongoing basis. From then on, I analyzed my results, thought daily about even the smallest improvements I could make, and tried to do even better the next day.
Good enough was never good enough. Introspection can be challenging, so one thing that I have done is to take time to celebrate wins and intentionally focus on remembering how that feels. Those memories can be motivational in times of stress or frustration and help you get back on track quickly.
Sales has been a major part of my consulting and management jobs since the mid-1990s, but it wasn’t until I owned my own company that it 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 on increasing your “level” in prospect and client relationships. The training was good and complemented systems like Miller Heiman.
Each of these systems helps you prepare, plan, and execute to the best of your ability. And just like basketball, it takes practice to master. With mastery comes success and the illusion that something is easy (or you are lucky). The Seneca quote, “Luck is what happens when preparation meets opportunity,” is so true.
Regardless of the system you use, what matters most is that you try to be the best at examining both positive and negative examples to learn from them. There are lessons to be learned everywhere – especially when you make mistakes! Understanding what makes it good or bad helps you improve as part of an ongoing improvement process.
Incorporating new tools and techniques into what has already been proven to work will help you improve your game. Returning 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 many horrible sales calls and emails. The people have obviously not done any preparation, do not know anything about the company I work for or about me, and often remind me why I stopped listening to them by citing how many times they have tried to contact me.
On the other hand, some talented sales professionals have done their homework, understand their products and the competition, and understand why what they are selling should matter to me – and can articulate that quickly and confidently. I will speak with them and occasionally buy from them. And in either case, I provide my team with real-life examples of good and bad sales techniques.
So, focus on becoming the best example of whatever it is you do, learn from others, and never stop improving. This isn’t about imitation; it’s about uncovering the secrets of their success and learning from them. And if you are lucky, you will have some fun doing it!
Lessons Learned from Small Business Ownership
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. Each new effort built on the success and lessons learned from those previous efforts.
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. I believe that this experience has made me a better leader, custodian of business, and employee – all because of this newfound understanding.
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 I believe 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. You start a business because you are running toward something big, and not because you are running away from something.
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 gave me the opportunity to move in a direction that I was more interested in (shifting away from technical consulting and moving toward 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 a 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:
Bureau of Labor Statistics stats on Entrepreneurship in the US
Connecting the Dots Faster
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, regardless of the industry or business.
It’s impossible to be an expert at everything. I believe having great depth in a few areas (true expertise) and breadth of knowledge in many areas (enhancing context and insight) is important. Both types of knowledge alone are valuable, but combined, they add a dimension that allows a person to be far more effective and potentially much more valuable because it leads to the ability to pick up on the dependencies and nuances that others miss.
Just think – How much more effective is a salesperson who understands technology and project management concepts when working to demonstrate fit and create a sense of urgency? Or, an Attorney who 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 who 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 and a desire to do amazing things create 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” 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, 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, what you did to figure it out, workarounds, 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.
I believe the best way to get ahead is to learn the position, innovate, optimize, and 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; 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 for my business. The funny thing was that I was working on that degree to raise the bar for my children, so this was just a bonus for me.
There are also other great ways to learn – ways that only require an investment of your time. There are many good free online courses. If you are interested in learning something or need to know more about it, 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!
OpenCulture (directory with content from multiple sources)
Open Education Database (directory with content from multiple sources
Diamonds or just Shiny Rocks?
During a candid review years ago, my boss at the time (the company’s CEO) made a surprising comment. During an executive meeting, he called a break and invited me to get a coffee with him. He said, “Good ideas can be like diamonds – drop them occasionally, and they have a lot of value. But sprinkle them everywhere you go, and they just become a bunch of shiny rocks.” This wasn’t the kind of feedback I expected, but it turned out to be both insightful and 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 are just there and don’t care much about anything. This opinion is based on 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”). If true, this is a sad reflection of employees and work environments. 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 didn’t completely align with my thinking, but they were interesting nonetheless.
So, back to the story…
Before working at this company, I ran my own business for nearly a decade and consulted for 15 years, working with large corporations and startups. I am used to taking the best practices learned from other companies and engagements and incorporating them into our business practices to improve and foster growth. Efficiency was the key to growth and profitability.
I take a systemic view of business and see the importance of optimizing all components of “the business machine” to work harmoniously. Improvements in one area ultimately positively impact other areas of the business. From my naive perspective, I thought I was helping everyone by helping those with “easily solved problems.”
My perspective lacked one important thing. These were not easy problems to the other business leaders. They were struggling and asking for help. By providing an answer off the cuff, it made them look and feel bad in front of the rest of the team.
I learned that while trying to be helpful, I was insensitive to the fact that my “friendly suggestions based on past success” stepped on other people’s toes, creating frustration for those I intended to help. Providing simple solutions to their problems reflected poorly on my peers.
Suggestions and examples that were intended to be helpful had the opposite effect. Just as bad, it was probably just as frustrating for me to be ignored as it was for others to have me infringe on their part of the business. The resulting friction was very noticeable to my boss, which led to our unscheduled coffee break.
Those ideas (“diamonds”) may have been considered had I been an external consultant. But as part of the leadership team, I came across as someone only interested in myself (leaving “shiny rocks” lying 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, engaged people have the greatest potential to make a difference. Part of being a business leader is making sure you have the best possible team and 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 their talent. They could actually be detrimental to the overall team dynamics. Understanding what drives someone from one category to another is a great first step in being sensitive while still staying effective.
Second, doing what you believe to be the right thing isn’t necessarily the best or right way to approach something. Being sensitive to the big picture and testing whether your input is being viewed as constructive was a big lesson for me. If you have good ideas but are ineffective, consider that your execution could be flawed. Self-awareness is very important.
Third, use your own examples as stories to help others understand potential solutions to problems in a non-threatening way. Let them connect the story to their own problems and find their own solutions. This helps them become more effective and allows 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 achieving business goals than about who gets the credit.
While this seems like common sense 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 to employ the best techniques, which is ultimately critical to the team or organization’s success.
Where Ideas, Experiences, and Lessons Learned Intersect 