The Importance Of Knowing Where You’re Going and Knowing Your Market Niche, #1

Yesterday, I had the opportunity to do two very cool things. At o’dark thirty I hosted a breakfast business event, an author’s talk, at the Columbia Tower Club here in Seattle. Keith McFarland was in town promoting his recently published book, THE BREAKTHROUGH COMPANY- How Everyday Companies Become Extraordinary Performers, released in January and already climbing quickly up the New York Times Best Seller List for business books. It’s being widely hailed and believe me, I plan on devouring it soon! You may want to check it out at a bookstore near you. In any case, Mr. McFarland had some interesting and insightful comments in his forty-five minutes and I’ll share the key points here.

First, it is not what you make; it is what you make of it. There are many mundane or non-sexy businesses out there, businesses that have no apparent opportunity to grow, no huge upside like the latest tech fad company. Owners of these types of businesses take what they have and decide they are going to grow the business. They are going to be opportunistic and find a niche they can exploit. For instance, it may be a product company or a service company that decides they will be the absolute world’s best in customer service. They look to the future and have a very clear idea about what the company will look like and what revenue size it will be.

Second, it is not how you as a company owner/leader are wired, it is how you wire the company. As an owner/leader, you have a distinct style and personality. You can’t do it all as you grow the business. You have to get the company set up and aligned for growth. You have to get the systems and people in place and set the tone. Your people should ‘get it’ when doing their work and in how they see the value of what they do because of the way you’ve put the organization together.

And third, it is not about getting the right people, it is about getting your people right. Sure, the picture painted in GOOD TO GREAT is a good one, about getting the right people in the right seats on the bus. And, the model that Jack Welch introduced at GE where they skim off the bottom 10% performers each year makes sense because every year the quality of the people in the organization goes up- the bar is raised. Yet, in these two examples we’re looking at companies that are long established and big time players. In smaller organizations that wish to grow, you have to work with what you have. You don’t have the luxury of being a top brand that can pick and choose from the best and brightest. As Mr. McFarland noted, people are way more capable of way more than you can possibly imagine. You have to get close to your people- find ways to get them super engaged and look for ways to allow them to use their gifts and talents so they flourish.

Next blog, I’ll tell you about my visit to an old friend and business associate, someone I worked alongside for about four years. He’s recently bought a business in one of these traditional businesses.

Awareness, Learning and Application

Every day I’m reminded of two things: how much I get stuck in my paradigms and how much I don’t know. I have to admit that I’ve been a student of concepts that Stephen Covey brought forth in his Seven Habits series- his messaging resonates with me and the way I think. One learning out of many was that paradigms, or patterns of thought, are neither good nor bad- they just are. Awareness of our paradigms and examination of the relevance or value of them is what brings us to greater understanding and real knowledge.

When I do my sales training classes, at the end of each session I ask: “What is new? What was validated? Now, what are you going to do with the information?” In both our business and personal lives (and many people would say they are one in the same- we are who we are) it’s important to at least have an awareness of what we’re thinking about and what we believe. We need to be open to learning new things and re-learning old ideas and concepts.

I would bet that most people clearly understand the value of learning new concepts, ideas, data, etc. This is information and knowledge that wasn’t known before and you can see real value in it. It adds to your total knowledge bucket.

It’s important to not only learn new things but to validate the prior learnings. Have you ever thought that you needed a tool or gadget, gone to the store, bought it, come home, used it, and then shortly thereafter found you had the same thing stuffed in a drawer or tool box? Knowledge is like that. Often, we learn something new and put it in a drawer. It sits there for years. We forget it’s there and it sure could have come in handy. When we re-learn it, we can see the value and how to apply it to current situations. That’s why re-validating prior learning is important.

The hard part is to take what we learn and apply it to life. It’s hard because sometimes it just seems like too much work or we don’t believe we can do it or maybe it really doesn’t apply or work. The vast majority of good business teaching (books, seminars, workshops) is relevant and practical. Have an attitude that the change or hard work required will produce benefits. Be intentional, disciplined and focused in your application. My experience is that the sooner you apply what you learn the better off you’ll be.

The Tax Man Cometh

I don’t have a lot to say today, except that I hope you got your taxes done and that a refund is headed your way. Unless, of course, you made so much money that you owe a bit more. Making more and owing more isn’t such a bad thing!

For me, the bad part about taxes isn’t having to pay them, because we need services and infrastructure. It’s my total mistrust of public officials to spend our money wisely and the entitlement expectation in this country that wastes huge amounts of money. I don’t agree with many of the government programs and allocations but beyond that I have lost confidence that anyone at the county, state and federal level has any competency on using our dollars properly on any program. Cost overruns and lack of accountability are the norm.

The question that I hear from others, and I’ll admit that I say to myself occasionally, actually amuses me: “Well, why can’t they be more responsible and be held to the same standards as normal people and businesses, which have to manage within a budget and not spend more?” Answer: because too many people and businesses in this country don’t manage within a budget. They spend more than they should, they don’t plan ahead and think they need it all. Fiscal responsibility starts at home and moves outward. Now, excuse me while I head to Costco and buy that 54” plasma TV that I don’t really need and can’t afford. Man, the NBA playoffs will be super on that screen…

New Thinking

“Innovation is super fragile. It’s very easy to kill. We need a stubborn, rebellious attitude.” Douglas Merrill, CIO, Google

I like that quote, especially the ‘stubborn, rebellious attitude’ part. I also like looking up definitions of words in dictionaries. Let’s see what some definitions of Innovation are, from various sources:

• something new or different introduced;
• the act of introducing something new;
• something newly introduced;
• a creation (a new device or process) resulting from study and experimentation;
• the act of starting something for the first time; introducing something new;
• the creation of something in the mind.

So, it sure points to creating or doing something new and different, and introducing or applying it.

What kind of person are you? Are you a thinker? Are you someone who comes up with new ideas or pushes the envelope? Are you always looking for new, creative ways to do something better or offer something to the market that is unique and additive?

What kind of company do you work for? Do they encourage and foster new ideas? Are they really open to hearing something different? Do they have as a part of their strategic plan a section on Innovation? Do they recognize creativity or the role of the creative process?

If you’re in technology, my guess is probably so. Technology certainly innovates at a rapid pace and those in the business know that the next big idea is always just around the corner, and it could be the competitor who puts you out of business. Most technology companies that I’ve been exposed to are very intentional in their approach to innovation.

If you’re in old-line manufacturing or services, you may not be as active in innovation. To be frank, most old line privately held companies that I’ve seen do some innovation, but not nearly enough. Oh, there are always a few new ideas and technologies to apply to older businesses, but these are pretty predictable and often are applications of existing technology to enhance what is already in place. It’s really rare when I’ve seen something totally new come out of an organization with direct application and benefit to the organization itself or its customers.

Here’s why Innovation is critical, for businesses large and small: study after study shows that companies that focus on innovation are usually the big winners. They have higher profits, happier employees, happier customers, a competitive advantage and a more prosperous and sustainable future. If you do not have innovation in your strategic game plan you’d be wise to start…NOW. Remember the old saying, “If you’re not doing it, someone else is.” And that someone else will eat your lunch.

More on communicating clearly

I went to a terrific workshop this past Saturday, put on by the Northwest chapter of the National Speakers Association (NSA). The guest presenter was Patricia Fripp, a world class speaker and trainer. If you’ve ever had a chance to see Patricia in action, you know what an impressive speaker and communicator she is. If you haven’t, you owe it to yourself to seek out an opportunity to hear her. She shared some key tips on speaking and communicating. Most, if not all, of Patricia’s suggestions can be applied to marketing and sales.

You might recall an old radio commercial series that ran for years by a company named Verbal Advantage. I remember words from their ads and their slogan: “You are what you speak. Every day, people judge you by the words you use”. It must have been a darn good phrase, because I remembered it, and it’s true. One of the key points Patricia made was the need for clear, crisp, concise language. Just one of the many takeaways I got was to use language that doesn’t use jargon or tired and overused phrases or terms. Use language that differentiates you from others and tells people that you are worth listening to and paying money to. Don’t be sloppy or boring. Be precise. Low level language equates to low level thinking and value. Lack of tight, crisp language devalues you and your message.

Take time to revisit your various communication delivery channels: your Elevator Speech, webpage, blog, flyers, etc. Get rid of language that is verbose, repetitive or confusing. I’ll bet that you’ll find huge areas for improvement.