Life
Acting Like an Owner – Does it matter?
One of the biggest changes to my professional perspective on business came when I started 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.” Having P&L responsibilities meant the decisions I made mattered to my success and 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 gone 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.
For example, “bad” salespeople (who may very well regularly exceed their quotas) typically do the following:
- Only care about the sale and their commission – not profitability, fit, customer satisfaction, or the effort required to support that customer.
- Selling products and services people don’t need.
- Making promises they know will not be met is a typical sign of a person who does not think like an owner.
- Their primary focus is on personal short-term benefit, and not on growing accounts or the success of the business.
These are examples of someone who does not think or act like an owner.
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 and 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. On the flip side, you need to quickly weed out people who are not a good fit. Making good decisions quickly and decisively is often a hallmark of a successful business owner. The saying about hiring slowly and firing quickly makes even more sense when you are running a lean operation that requires every person to contribute to the company’s success.
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. Agility can be a significant competitive advantage. My company often contracted with Fortune 100 companies for this very reason. We could attempt something faster, for less money, and with less scrutiny than could be done internally. Those companies were outsourcing innovation.
Sometimes, this means specialization and customization, and sometimes, it means personalized attention and better support. Regardless of what is different, these people pay attention to 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. This can be a learned skill, developed out of necessity.
Former business owners are usually more conscientious about money. I created a “my money” policy on expenses. If someone felt something was important enough for their success that they would spend their own money on it, then they had my blanket approal to move forward. This approach created understanding and accountability.
Every dollar in the business provides safety and the opportunity for growth. Most owners 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 and growth of their company.
While these are common traits of successful business owners, you can develop them even if you have never owned a business. Hence the title, Acting like an Owner.
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? When leading, are you being fair and transparent with your team? 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. I did this to personalize what they were doing so it would have more impact. 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 them (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, goals, and aspirations. We become part of their story, and this new story becomes 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 with it.
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.
The Power of Simplicity
“If you can’t explain it simply, you don’t understand it well enough.” – Albert Einstein
In the first part of my career, I didn’t care much for consultants. My experience was that they would come in, tell you what to do, and then leave victoriously while we were stuck trying to implement something that just wouldn’t work. They seemed to make everything seem so complex—often to justify their cost.
Then, I met an amazing consultant who shared something valuable with me. He explained what he believed differentiated a true consultant from a contractor (something I wrote about a decade later in a Tech Republic article). He then made me aware of the Einstein quote above. This was one of those pivotal moments in my career.
For many years, I have met many interesting people. Some seemed to try to intentionally obfuscate even the easiest things to make themselves seem brilliant. Others took such a circuitous route that you sometimes forgot what you were trying to understand and fix. And sometimes explanations were just so tangential that the main point was lost entirely. There are likely many reasons for these experiences – some intentional and many not. The real lesson learned is that it wasn’t just consultants who can be incomprehensible, and that clear, comprehensible communication is critical to effectiveness.
Just think about the power of a well-crafted “elevator pitch” when you meet someone new or the ability to quickly explain how your company differentiates itself from the competition (piquing their curiosity, making you the more interesting, or helping your company become the better/safer choice in your prospect’s mind).
Or being able to articulate your business strategy in a way that people understand (and can explain to others). That understanding can create interest, leading them enough to want to learn more and become part of making that happen.
The best consultants, as do the best employees/managers/executives/business owners, have this ability to explain something simply. While this is only one attribute of success (likability, powers of persuasion, integrity, knowledge, and skills are others), it is something that can be taught, developed, and consistently applied.
The power to “explain it simply” is the power to make a difference through better understanding, and that is what communication is all about!
The People Who Move the Dial
Whether you are a business owner, a manager, or a parent, finding the right way to motivate your team is important to maximize performance and results. Each person is a little bit different and is looking for something a little different, and once you figure out what is important, you can help increase their impact. Not everyone wants to be a star – which is usually OK (as long as they have the right attitude, skills, and work ethic and add value).
Then there are those exceptional people who want to be the best, are willing to take risks, work hard, and “think differently” in order to succeed. These people are self-motivated and continue to raise the bar for the entire team as part of a high-performance culture. These are the people who move the dial.
I’ve had the pleasure of being taught by people like this, working with people like this, managing people like this, and helping a few become people like this. Occasionally, you have a few special people working together, which is when amazing things happen. These people are generally curious and wonder, “Why not?” They are confident (not arrogant), intelligent, and passionate about success.
Back when I was funding medical research projects, I had a trip scheduled to Philadelphia. I asked a friend at a local hospital to make an introduction to meet someone from “CHOP” (the Children’s Hospital of Philadelphia). They were ranked as a top hospital and research facility, and I wanted to learn why. She made the introduction, and we scheduled a lunch meeting. I was looking forward to the meeting but had no real expectations (other than being asked for money).
To my surprise, a half-dozen people in a large conference room with a catered lunch greeted me. They presented on their various projects (such disclosures were unusual, as they did not know me and, even riskier, knew I was involved with research projects at other facilities). Everyone in the room was amazing, and the department head (Dr. Terri Finkel) was one of the most impressive people I had ever met.
After lunch, I told Dr. Finkel I appreciated the lunch, but wondered why she went to so much trouble when I never promised to do anything in return. She smiled and replied, “We love what we do and love having the opportunity to talk about our projects and passions to people with similar interests.” That made a huge impression on me, and within a few months, we were funding projects using a unique new approach that Terri suggested. The approach was in response to my question about getting the most “bang for my research dollars” (thinking more like a businessperson than a researcher).
Over the next few years, this team did incredible things that had a tangible impact on Pediatric Rheumatology and the quality of life for children with Juvenile Arthritis. Many great researchers were involved, but two of them really stood out (Drs. Sandy Burnham and Randy Cron – both continue to do amazing things to this day). The results of this team were so much better than everyone else we supported. They provided a huge return on my investment, and I can take pride knowing that I made a difference through these efforts while helping launch their careers.
To me, it came back to the basics. Intelligent people who were passionate about making a difference, confident enough to be challenged, and led by a visionary person who saw an opportunity to motivate her team and help me achieve my goals. It’s the best type of win-win scenario possible.
These people moved the dial back then and continue to move it today. It is a thing of beauty to watch stars like this perform. These people shine twice as bright as they guide others toward success. And you can find them in every industry and every walk of life – you just need to look.
Using Technology for the Greater Good
My company and my family funded a dozen or so medical research projects over several years. I had the pleasure of meeting and working with many brilliant MD/Ph.D. researchers. My goal was to fund $1 million in medical research and find a cure for Juvenile Arthritis. We didn’t reach that goal, but many good things came out of that research.
Something that amazed me was how research worked. Competition for funding is intense, so there was much less collaboration between institutions than I would have expected. At one point, we were funding similar projects at two institutions. The projects went in two very different directions, and it was clear that one would be much more successful than the other. It seemed almost wasteful, and I thought there must be a better, more efficient, and cost-effective way of managing research efforts.
So, in 2006 I had an idea. What if I could create a cloud-based (a very new concept at the time) research platform that would support global collaboration? It would need to support true analytical processing, statistical analysis, document management (something fairly new then), and desktop publishing. Publishing research findings is very important in this space, so my idea was to provide a workspace that supported end-to-end research efforts (inception to publication, including auditing and data collection) and fostered collaboration.
This platform would only work if there were a new way to allow interested parties to fund this research that was easy to use and could reach a large audience. Individuals could make contributions based on areas of interest, specific projects, specific individuals working on projects, or projects in a specific regional area. The idea was a lot like what Crowdtilt is today. This funding mechanism would support non-traditional collaboration and hopefully greatly impact the research community and their findings.
Additionally, this platform would support the collection of suggestions and ideas. Good ideas can come from anywhere – especially when you don’t know that something is not supposed to work.
During one funding review meeting at the Children’s Hospital of Philadelphia (CHOP), I made a naïve statement about using cortisone injections to treat TMJ arthritis. I was told why this would not work. A month or so later, I received a call explaining that my suggestion might work, with a request for another in-person meeting and additional funding. Conceptual Expansion at its best! That led to a new research project and positive results (see http://onlinelibrary.wiley.com/doi/10.1002/art.21384/pdf).
You never know where the next good idea might come from, so why not make it easy for people to share those ideas.
By the end of 2007, I had designed an architecture based on SOA (service-oriented architecture) using open-source products that would do most of what I needed. Then, in 2008 Google announced the “Project 10^100” competition. I entered, confident that I would at least get an honorable mention (alas, nothing came from this).
Then, in early 2010 I spent an hour discussing my idea with the CTO of a popular Cloud company. This CTO had a medical background, liked my idea, offered a few suggestions, and even offered to help. It was the perfect opportunity. But, I had just started a new position at work, so this project fell by the wayside. That was a shame, and I only have myself to blame. It is something that has bothered me for years.
It’s 2013, and far more tools are available today to make this platform a reality, and something like this still does not exist. I’m writing this because the idea has merit, and I think there might be others who feel the same way and would like to work on making this dream a reality. It’s a chance to leverage technology to potentially make a huge impact on society. And it can create opportunities for people in regions that might otherwise be ignored to contribute to this greater good.
Idealistic? Maybe. Possible? Absolutely!
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