Tag Archives: Culture

Soccer, Fighter Planes, and Strategy

In most other countries around the world, soccer (“futbol”) is the national past time and a great source of the good kind of pride. It inspires its observers to sing national anthems, set differences aside, and salute efforts where one or many “put it on the line.” During the course of the weekend, I have been observing UEFA 2012, the European tournament held on the same four year schedule as the Olympic games.

One of the interesting things that occurs in the format of the tournament is the pairing of teams against one another wherein one appears–on paper–to have far superior credentials to another. In many cases, a starting lineup for one side can be stacked with players who have 100+ games (matches) on the international stage. With such vast experience, the veteran side enjoys a presumed advantage over the opposition. Often, the more veteran team enjoys an additional upper hand due to the superior ball-handling, striking, and passing skills of its players.

The scenario is analogous to young or smaller businesses trying to compete against prohibitively endorsed large, mature businesses. Yet, whether in futbol or in business settings, we see the underdog come out on top often enough that we realize competition is not decided through analysis and predictions. What, then, are some of the reasons that a presumably out-manned competitor emerges victorious?

If I may bring in yet another comparison without losing the train of thought, I’d like to reference the story of the Tuskegee Airmen, revived through the recent Red Tails movie produced by George Lucas. In the movie, the African-American pilots are disdained by both their own armed forces as well as the haughty Luftwaffe (German Air Force). The heroes are initially perceived as being less intelligent, having slower reflexes, and lacking the experience to get the job done of protecting U.S. bomber squadrons during the second World War strategic air campaigns to reach Berlin and help the Allied forces achieve victory. What the featured pilots bring to the air battles (at least in the movie version) are the following distinctives:

  1. They were not fighting for individual glory,
  2. They were not afraid to take reasonable risks,
  3. They were (for the most part) disciplined in their consistent approach.

In business, it is very important to observe how applying these distinct characteristics would benefit a company’s performance–whether going against peers or seemingly over-matched foes. In order to build the “esprit de corps” requisite to compete will require emotional intelligence. More self-awareness and significant amounts of empathy and self-regulation are traits that are uncommon in the masses, but very evident in those who are not selfish.

Risk taking and management of the risk-rewards trade-off is a nuance rather than the exact science some would have us to believe. As depicted both in the movie and in a game between Spain and Italy this weekend, there is a “right time” to go for the gusto. Italy was successful playing quick attacks over the top of the Spanish defense and the Red Tails had success in attacking peripheral targets after primary targets were taken out. Business strategies that include both a primary objective and additional (discretionary) targets are wise.

Finally, the commitment to the plan–a resolute determination to dismiss the criticism of others and stay focused–is vital. Don’t mistake this focus, however, for sticking to a bad idea too long. Strategies must be proven to be successful before being implemented far and wide and held up as the “best practice.” Once featured, the strategy should be re-evaluated based on results and feedback. While being pursued, however, there can be no dissension among the ranks.

Culture: Key to Performance

Recently, I had the opportunity to address a group of HR leaders on how to improve decision-making within their organizations. (Thank you RWHRMA, Masters Series participants!) The premise of our time together was that better decision-making translates into superior performance and that there are definite ways to improve the quality of decisions. Most of our workshop was used to define the components and use of emotional intelligence (EQ). In order for employees–and managers/executives–to consistently exhibit high EQ, valuing and engaging others is a key.

A focus on others and their needs is a result of purposeful culture development. Paul Spiegelman, founder and CEO of The Beryl Companies, writing for Inc. on June 6, described Beryl’s “10 Cs of Culture:” 

1. Core Values

..when we implemented our values strategy at Beryl about 10 years ago, I began to see how they guided everyday decision-making and how employees referenced them in meetings.  I came to realize they are essential guideposts when developed, communicated, and executed in a consistent manner…We start every big meeting with a conversation about values and tell stories about how our coworkers live by those values on a daily basis.  

2. Camaraderie 

It’s about getting to know colleagues not just as colleagues, but what they’re like outside the office.  To do that, Beryl hosts dress-up days, parties, games, and events all the time..We include not only employees, but also their families.  We publish a bi-monthly full-color magazine called Beryl Life that is sent to the homes of co-workers.  

3. Celebrations 

You can’t underestimate the importance of recognizing your team..we developed a program we call PRIDE (Peers Recognizing Individual Deeds of Excellence).  This allows coworkers to recognize others for living up to Beryl’s core values.  

4. Community

Part of the fabric of a successful company culture is connecting with and giving back to the local community.  

5. Communication

I hold quarterly Town Hall meetings, which includes six meetings over two days..I also have informal “chat and chews” where I bring in lunch for 12 to 15 people and just ask one question–How’s it going?–to get the conversation started.  

6. Caring

Show your employees you genuinely care about them in the totality of their lives..Any manager can explain a situation on an internal website that identifies a coworker, and lists what’s going on (birth, death, injury, wedding, among other things).  That submission generates an email to me that is my trigger to send a personal notecard, make a phone call, or visit someone in a hospital.  

7. Commitment to Learning

Show your employees you’re committed to their professional growth. This can be done in small, incremental steps. 

8. Consistency

Culture is based on traditions..One-time efforts to improve the culture will feel disingenuous.  

9. Connect

Don’t isolate yourself at the top.  Connect with people at all levels of your company.  Get out of your comfort zone.  

10. Chronicles

Does everyone in your organization know how the company started?  Do they know the personal stories of the founders and what led them to build a sustainable business?  People want to know they are part of something special and unique.  

Do you get the feel that, at Beryl, you could fit in and feel engaged in the key conversation(s) that contribute to its success? What about your company? Do you have a culture that is engaging? If not, what can you do about it? What’s holding you back? Talk with your peers and come up with a plan, then implement it!

Focus, With Help, on Execution, Business Owner!

Turning 40–or any number after 20 and ending in “0”–causes the birthday person to pause and ponder lessons learned up to that point in life. The founder of Contentrix, Alice Seba, shared her list of personal observations (below). Several of them caught my attention for tonight’s blog post.

When Seba makes the point (#2) that entrepreneurs should not try to go it alone, I should a hearty “amen!” The attempt to be a master of everything rather than using outsiders, additional insiders, or advisors/mentors who are a little of both is a huge mistake. Similarly, the isolation exemplified by avoiding friendly relationships with competitors usually is a bad move. Instead, follow the advice to get to know them (#7 & #8) and enjoy the benefits of vicarious growth.

#1.  Working a lot doesn’t necessarily mean working hard…nor does it imply working smart

#2. There is no point in doing things solo

#3. Focus on your talents and your passions, but be realistic

#4. Don’t compare yourself to others

#5. Define success in your own way

#6. You can’t please everyone, nor should you try

#7. Embrace your would be competitors

#8. Making friends in your niche is one of the biggest accelerator to your success

#9. Don’t be a social butterfly

#10. Content has always been what sets long term successful businesses apart from others

#11. Content is one of the simplest, least expensive and most effective ways to generate leads and sales for your business

#12. If you’re not actively building and nurturing your mailing list, you’re stunting your business growth big time

#13. Existing customers are the key to getting more sales

#14. Staying the course will help you get to success much faster

#15. Posting your blog is rarely the most critical activity for a business

#16. SEO was easy in 2002 – It’s like chasing rainbows in 2012

#17. If your children say they need you while you’re on the computer, go to them

#18. If you are just starting out and reek of desperation, scammers will sniff you out a mile away

#19. There comes a point when you have to stop educating yourself and you just have to start doing

#20. I no longer believe in continuously investing in my education to improve my business

#21. It’s okay that a lot of people don’t understand what I do

#22. Technology is my friend, but I don’t mess around with it more than I have to or am capable of

#23. Customer service is a critical part of your business, but it’s a productivity inhibitor

#24. Other people’s blogs can be useful

#25. Nothing on the Internet is private

#26. If you don’t own the site you’re publishing too, you really don’t own that content

#27. Working in batches is great for productivity

#28. I used to think religion and business don’t mix

#29. There is no one quite like you, but you are dispensable…or at least you should be

#30. Tools and Software don’t grow your business, you do

#31. You don’t have to explore everything to diversify

#32. Listen to your audience…they can teach you a ton

#33. There is no shame in selling

#34. If you’re not confident, they’ll know

#35. Knowing the words to use is also important

#36. It’s okay to take a break when you just aren’t into it

#37. To do lists are always meant to be shortened

#38. Use your freedom to do good things

#39. Appreciate and be thankful for what you have

#40. Take care of yourself

The second key theme from the list is the power of focus. Whether choosing to focus on a few strategic relationships (#9), or valuing customers individually (#13), you will find that constantly seeking newness rather than depth will be a distraction that makes success harder to come by. 

Three’s the charm for tonight. In addition to the other two themes, I find it important to mention that there comes a time to just work your business. I am a firm believer in seeking wise counsel and insight but not, as indicated in #20, to the exclusion of executing priorities today.

We’ll attempt to highlight items from the second part of the list tomorrow night!

The Great Urban Entrepreneur

Five years ago, a pair of adventure loving buddies found a way to bring their love of thrills into an urban environment. They since have grown Red Frog Events into an $85 million business that hosts competitions during which teams solve clues and complete mental and physical challenges while discovering their city in a fresh way. Joe Reynolds and Ryan Kunkel have parlayed their $5,000 initial investment into a successful Chicago-based company with more than 60 full-time employees, three signature extreme races and a serious following.

The company’s most popular event, Warrior Dash, a 5K race packed with obstacles like a pond filled with logs, a rock wall, a tunnel of flames and a sinking mud pit, made appearances in 35 cities across the country in 2011 and drew 600,000 participants. This year the company is going international for the second time, taking its events to Ireland and Great Britain. Reynolds says, “When you’re really passionate about your business, you can see lots of tremendous opportunities.”

Nancy Mann Jackson says (in her Entrepreneur magazine article about him) “Reynolds had previously owned a house-painting company, but had no idea how to contend in the event-production business. What he did know was that he loved competing and creating fun experiences–and he wanted to share his passion with the masses. With hard work and dedication, he’s now doing just that. If, like Reynolds, you’d like to turn what you love into a viable business enterprise, start with these six tips:”

1. Don’t count on passion alone.

“Sometimes passion can blind you to the potential downside of your idea,” says John Torrens, a serial entrepreneur and an entrepreneurship professor at Syracuse University. “The one non-negotiable factor for any sustainable business is that they solve a problem for a specific customer segment in a way that is appreciably better than the next best alternative. Get as much feedback from potential customers as possible. No matter how great you think the idea is, you still need to understand what your market thinks.”

Remember the details. There are tons of ancillary functions that go along with running a business that must be performed well for it to succeed.

Dole out responsibility.  You’ll either have to delegate the primary work to others, or you may choose to delegate managing the operation to someone else so you can continue to focus on the primary work yourself.

2. Hire passionate people.

Having employees who share your zeal for the business will help your company succeed. For instance, at the Warrior Dash Louisiana in 2010, a series of tornadoes tore through the landscape during the event. Neither Reynolds nor Kunkel were in Louisiana, but the staffers who were managing the race stayed up through the night to repair the course and get all the obstacles ready again, so the competitors who weren’t able to finish could complete the course the following day.

3. Share your passion.

If you have a hobby, likely there are others out there who share that interest and would like to learn more about it. Sharing your knowledge can be a great way to build your business.

4. Keep the passion alive.

Reynolds and Kunkel make a point to continue competing in races themselves so they can maintain their love for running and recreation. Rather than feeling responsible for thinking of everything and micromanaging their employees, Reynolds and Kunkel empower their staffers to develop solutions to their own problems.

5. Prioritize fun.

Torrens says, “In the authentically passionate companies, everything grows from that passion, including the people, policies, branding and community relations. That obsessive focus on whatever it is that gets you out of bed can’t be faked, but it takes work to create the circumstances under which it can thrive. “

6. Expand your passion.

Reynolds launched Red Frog Events because he wanted to combine his love for adventure travel and competitive runs. But over the past five years, he and Kunkel have realized they are excited about producing recreational events in general, not just runs. This year they plan to enter the music festival industry, starting with their own Firefly Music Festival, which they hope will compete with some of the world’s largest such events.

Refuse to Lose (Investors’ Money)

Clarence Wooten, who sold his start-up Image Cafe to Verisign 7 months after founding for $23 million, told an audience at MIT/Sloan recently that there are keys to the entrepreneurial mindset. Barb Darrow with GigaOm summarized his comments into 12 lessons:

  1. Paycheck is an addiction. Not unlike crack cocaine. Entrepreneurs have to break that addiction to build an asset that will pay off long-term, not in a weekly paycheck.
  2. Beware of naysayers. Because 99 percent of this country works for the 1 percent, they  have risk-averse employee mentalities. Don’t listen to them.
  3. Just do it. Be like Nike. There is no roadmap. If you don’t do it, it won’t get done. Work lean. Corporate people are used to resources — HR departments, assistants but entrepreneurs do it on their own.
  4. Fail fast, fail cheap. You will fail a lot because you’ll need to try a lot things. So do that on the cheap. Instagram’s first product  – Brbn — failed but they distilled that app to its bare essence and it caught fire.
  5. Partner pitfalls. It’s scary to be out there alone. You want someone to share the ups and downs. Often one partner will work harder than the other but share the same upside. Share the downside as well and don’t necessarily split equity equally. Set up reverse vesting:  When you issue founder’s stock, make sure it vests in case someone leaves they don’t leave with all equity just with what has vested.
  6. Be naïve. Unlearn what you learned in corporate America about hierarchy. Being naive means being ballsy. Facebook turned down a $1 billion offer from Google and people thought Zuckerberg was crazy. He wasn’t but he may have been naive. That paid off pretty well.
  7. Business is a team sport. Would you rather own 100 percent of a $1 million-a-year business or 20 percent of a $100 million-a-year business? Everyone needs equity. You need as much brainpower as possible.
  8. Challenge your comfort zone. I knew I had to put myself out there speaking in public. I wasn’t comfortable with it but I did it.
  9. Image matters. People judge you when you talk about your company and you have one chance to make a first impression. If you’re not a design person, don’t do your own logo. Crowdsource if you need to.
  10. Shadow of a leader. You determine what your company culture looks like. Build it as a place you want to work every day. People watch you. At Image Cafe, I brought in a CEO who was religious. I wanted to act like a customer to get competitors’ pricing and she said “absolutely not.” She set the ethical tone.
  11. Investors want their money back. This is important. Investors back you. Your integrity is on the line. So know your exit strategy. I’ve never lost an investor’s money and I carry that chip with me every day.
  12. Cash and customers. Lessons 1 through 11 you can learn on your own but for #12 it helps if you have some education and understanding finance and marketing.

Wooten feels that entrepreneurship is a combination of talent, preparation and hard work. Following the 12 guidelines above will give you as an entrepreneur a chance to be more successful.