This is a great example of negotiating from a Hollywood Mogul to a future Hollywood Mogul. Barry Diller, then a young executive at ABC on his way to running a few studios and, more recently, IAC, was approaching Lew Wasserman, head of MCA/Universal:
"I was purchasing films for ABC from Universal, and I went to his office, and I asked him - I said, given that we are buying sixty-four units at ,$600,000 each, couldn't you cut one little unit off the sixty-four? Two beats. He stared. He said, 'No.' Nothing more. Just, no. Silence. The stare. And I folded like the cheapest tent. But as I got up to go, dejected, knowing the fool that I was, he walked me out and in that very quiet voice of his he said, 'Next time you try this, be prepared to call it off if you don't get what you want. Because, otherwise, you never will.' And the door closed behind him."
-From When Hollywood Had A King by Connie Bruce.
Wednesday, March 31, 2010
Sunday, March 28, 2010
The Corner Office MBA: Lessons In Leadership
By Lewis Collins
Leadership is a term of art. It has been defined and redefined over the centuries. Each leader has his or her unique leadership style and characteristics. The Reverend Martin Luther King once said: “A genuine leader is not a searcher for consensus but a molder of consensus.” This statement is a crystallization of what a leader must do to lead. Rudy Giuliani was once asked whether leaders are born or made. His response was that he believed that leadership is mostly a skill that people can learn. He indicated that the learning process begins when you are a child and sources of the “DNA” that leaders possess come from parents, friends, colleagues, teachers and clergy. Giuliani also believed that leadership can be honed by reading about great leaders. He believed that by reading about these great examples of leadership, one sharpens their understanding of how great leaders think and act. This article is inspired by, and loosely based on, Rudy Giuliani’s book: “Leadership”.
Everyone’s accountable, all the time. As a leader, it is your responsibility to be accountable for your actions. These actions must be based upon your core beliefs. You as the leader set the tone. Leading by example is not only a platitude – it is a platform.
Are you up to the Challenge? For a business leader to remain effective, he or she must continually challenge themselves. For a leader to lead, everything must be questioned. The most dangerous “infection” a business can experience is the virus of success. Success breeds complacency. As pointed out by the authors of Built to Last, the truly successful business is one that has an unchanging core belief yet continually reexamines itself in light of the changing business culture. Long-term success requires a business leader to hold true to his or her core beliefs and, at the same time, continually challenge themselves to change and adapt to the environment within which the business exists. You must remain vigilant by continually examining each component of the business to determine whether or not that component is in line with its core beliefs and goals. Continually challenge yourself and the business to determine the relevance of everything undertaken.
Bright people debunking your logic test the consistency and validity of your ideas. Being a leader does not give you a corner on the market of ideas. Great leaders surround themselves with bright people who are not “yes men or women”. Tom Peters, one of our nation’s most prominent management gurus, advocates at a leader should surround themselves with contrarians. He believes that contrarians help an organization test and shine a bright light on the dark corners of those ideas. A leader needs the insight of bright people who can look at all aspects of ideas and plans from a contrary viewpoint. In this way they will assist you in honing and validating those ideas and plans.
A real leader leads with a true heart and an honest mind and will not deny a belief simply because it makes him or her uncomfortable. Being a leader involves, on occasion, making tough choices. The tough choices must be made if they are consistent with the core beliefs of the leader and, of course, the organization. It is easy to make decisions when those decisions are popular ones – the true leader, however, makes decisions that are tough. Be your own person. A leader is chosen because the business trusts his or her judgment, character and intelligence. Do not put your finger to the wind of opinion and do the popular thing if it runs contrary to the vision you have laid out and your core belief.
Every decision must be made for the benefit of the business. When a decision is made, the business and its interests must be paramount – above those of your own. This must be a template for every decision that is made. Inspire confidence. It is a leader’s job to instill confidence by believing in his or her own judgment. Lead with ideas . . . and ideals.
Prepare relentlessly! Rudy Giuliani, a student of leadership throughout history, made a very striking observation. He crystallized what he observed as a very important key to making a leader. He wrote: “Preparation – thus eliminating the need to make assumptions – was the single most important key to success, no matter what the field.”
The importance of meetings. Meetings are a way to coalesce ideas, a way to brainstorm and refine. Meetings, however, are meaningless unless they are well-organized, focused and short.
Set the tone early on. When you begin to move forward as the leader of an organization, it is vitally important to communicate your vision, organization and plan early and often. The opening tone you set will motivate, inspire and focus others. Start with small successes. Giuliani tells in his book of one of his earliest “small successes”. This success was with a group of people he referred to as the “squeegee men”. These were people in New York City who would jump in front of cars stopped for a traffic light and squeegee their windshield. After the cleaning, the squeegee men would pressure the drivers for payment. One of the first things Giuliani did when taking over as mayor was to crack down on these “squeegee men”. In a short period of time he was able to eliminate their harassment. This small, tangible, success was a building block for the many large successes that he experienced later in his administration.
Surround yourself with great people. Great leaders have great insight. Great insight comes from a variety of sources. The best source for great insight is surrounding oneself with great people. Too many leaders believe that they are “anointed” through their election or appointment to a leadership position. This lack of humility and failure of perspective is one of the single biggest flaws of a true leader.
Servant leadership. A true leader realizes that he or she serves the organization. If a leader believes that they “rule” the organization, they will be an unmitigated failure. To paraphrase Psalm 19, great leaders ask to be free of presumptuousness. The servant attitude will place you in the right frame of mind to lead. It will give you the proper perspective and attitude. You will realize that you brief time at the head of the organization is one of service to the members.
Realize your weaknesses. A good leader realizes that he or she has weaknesses. No one leader has all of the traits and qualities needed for leadership. When a leader realizes this, they can balance their weaknesses with the strengths of others. I am not as good with budgets and financial forecasting. I am more of a big picture, idea man. I realized this shortcoming and, as a result, relied on the sound financial judgment of others to compensate. Leadership, therefore, requires the leader to be honest with themselves. Admit your shortcomings and be a leader by making sure you have a person or persons you can count on to fill the hole in your leadership void.
Motivate and Delegate. A great leader who surrounds themselves with talented people must take the next step by motivating those people to achieve. Allow the people you appoint to encounter challenges on a regular basis. Challenging talented people brings forth their true abilities and allows them to achieve great things. Create a sense of adventure in the job you task them. If highly driven people are not sufficiently challenged, they surrender to self-satisfaction and arrogance. Give them the vision of what you want to accomplish, the leeway to make it happen and the spark to ignite their passion for the project. Empowerment allows businesses to achieve great things. A team can achieve much more than an individual. If you delegate - and then empower the people you delegate - you show your true leadership character. Delegation without empowerment leads to the primary weakness of an organization – micro-management from the top. General George S. Patton once said: “Never tell people how to do things. Tell them what to do and they will surprise you with their ingenuity.” As the Chinese philosopher Lao-Tzu once said: “When the best leader’s work is done, the people say, ‘We did it ourselves’”. This is a great picture of what a leader does through empowerment.
Reflect, then decide. It is often said that the primary difference between intelligence and wisdom is experience. Experience provides you with the underlying facts that allow you to reflect. Experience teaches you what you need to determine the best course of action. It gives you the basis for making a more informed decision. Woodrow Wilson said, “One cool judgment is worth a thousand hasty counsels. The thing to be supplied is light, not heat.” Experience teaches that we should:
1. Be reflective. Consider all your options before making a decision.
2. Be ready to pull the trigger. After considering the options and the counsel of others, the time comes to make a decision.
3. Early analysis. You must begin the process of decision-making by analyzing all of the options at the earliest possible moment.
4. Use creative tension. As pointed out earlier, the contrarians in your organization are very valuable. Use their contrary views, thoughts and ideas as a catalyst to making the right decision. F. Scott Fitzgerald said that the “test of first-rate intelligence is the ability to hold two opposed ideas in the mind at the same time, and still retain the ability to function” – to make a decision.
5. Chart it, outline it, understand it. Most innovative thinkers understand the importance of reflecting before deciding. His “chart it, outline it, understand it” way of thinking helps a leader make the right decisions. This method of thinking allows a leader to: organize the steps to completion; factor in accountability; use creativity to solve problems and, think outside the lines and decide what’s best for the organization.
6. Establish priorities and stick to them. Once a goal is set, the steps to achieving that goal, within a reasonable time frame, must be established to provide a guidepost of achievement, a horizon of accomplishment.
Conclusion. Leadership is the most important ingredient that enables a business to achieve great things. In his book, Good to Great, James Collins underscores the importance of leadership in developing great organizations. A leader must possess many vital character traits. While no leader has all of these characteristics in equal measure, great leaders possess most of these core ingredients. Character, courage, compassion, vision, wisdom, conviction and doggedness are all aspects that a leader must draw upon if they are to lead an organization from “good to great”. Whether that “organization” is your family, or your business – you must be able to tap into these elements to achieve greatness.
I end with the reflections of Alexis de Tocqueville. de Tocqueville, a French writer, poet and historian, came to America to observe, first-hand, what made this country “tick”. He observed:
“I sought for the greatness and genius of America in her commodious harbors and her ample rivers – and it was not there . . . in her fertile fields and boundless forests – and it was not there . . . in her rich minds and her vast world commerce – and it was not there . . . in her democratic congress and her matchless constitution – and it was not there. Not until I went into the churches of America and heard her pulpits flame with righteousness did I understand the secret of her genius and power. America is great because she is good, and if America ever ceases to be good, America will cease to be great.”
About the author: Lewis is a Partner in the Tampa, Florida office of Butler Pappas Weihmuller Katz Craig, LLP. He has served as President of the Federation of Defense & Corporate Counsel (2005-06) and is Past President of the Florida Defense Lawyers Association. Mr. Collins currently holds the position of President of Lawyers for Civil Justice
Leadership is a term of art. It has been defined and redefined over the centuries. Each leader has his or her unique leadership style and characteristics. The Reverend Martin Luther King once said: “A genuine leader is not a searcher for consensus but a molder of consensus.” This statement is a crystallization of what a leader must do to lead. Rudy Giuliani was once asked whether leaders are born or made. His response was that he believed that leadership is mostly a skill that people can learn. He indicated that the learning process begins when you are a child and sources of the “DNA” that leaders possess come from parents, friends, colleagues, teachers and clergy. Giuliani also believed that leadership can be honed by reading about great leaders. He believed that by reading about these great examples of leadership, one sharpens their understanding of how great leaders think and act. This article is inspired by, and loosely based on, Rudy Giuliani’s book: “Leadership”.Everyone’s accountable, all the time. As a leader, it is your responsibility to be accountable for your actions. These actions must be based upon your core beliefs. You as the leader set the tone. Leading by example is not only a platitude – it is a platform.
Are you up to the Challenge? For a business leader to remain effective, he or she must continually challenge themselves. For a leader to lead, everything must be questioned. The most dangerous “infection” a business can experience is the virus of success. Success breeds complacency. As pointed out by the authors of Built to Last, the truly successful business is one that has an unchanging core belief yet continually reexamines itself in light of the changing business culture. Long-term success requires a business leader to hold true to his or her core beliefs and, at the same time, continually challenge themselves to change and adapt to the environment within which the business exists. You must remain vigilant by continually examining each component of the business to determine whether or not that component is in line with its core beliefs and goals. Continually challenge yourself and the business to determine the relevance of everything undertaken.
Bright people debunking your logic test the consistency and validity of your ideas. Being a leader does not give you a corner on the market of ideas. Great leaders surround themselves with bright people who are not “yes men or women”. Tom Peters, one of our nation’s most prominent management gurus, advocates at a leader should surround themselves with contrarians. He believes that contrarians help an organization test and shine a bright light on the dark corners of those ideas. A leader needs the insight of bright people who can look at all aspects of ideas and plans from a contrary viewpoint. In this way they will assist you in honing and validating those ideas and plans.
A real leader leads with a true heart and an honest mind and will not deny a belief simply because it makes him or her uncomfortable. Being a leader involves, on occasion, making tough choices. The tough choices must be made if they are consistent with the core beliefs of the leader and, of course, the organization. It is easy to make decisions when those decisions are popular ones – the true leader, however, makes decisions that are tough. Be your own person. A leader is chosen because the business trusts his or her judgment, character and intelligence. Do not put your finger to the wind of opinion and do the popular thing if it runs contrary to the vision you have laid out and your core belief.
Every decision must be made for the benefit of the business. When a decision is made, the business and its interests must be paramount – above those of your own. This must be a template for every decision that is made. Inspire confidence. It is a leader’s job to instill confidence by believing in his or her own judgment. Lead with ideas . . . and ideals.
Prepare relentlessly! Rudy Giuliani, a student of leadership throughout history, made a very striking observation. He crystallized what he observed as a very important key to making a leader. He wrote: “Preparation – thus eliminating the need to make assumptions – was the single most important key to success, no matter what the field.”
The importance of meetings. Meetings are a way to coalesce ideas, a way to brainstorm and refine. Meetings, however, are meaningless unless they are well-organized, focused and short.
Set the tone early on. When you begin to move forward as the leader of an organization, it is vitally important to communicate your vision, organization and plan early and often. The opening tone you set will motivate, inspire and focus others. Start with small successes. Giuliani tells in his book of one of his earliest “small successes”. This success was with a group of people he referred to as the “squeegee men”. These were people in New York City who would jump in front of cars stopped for a traffic light and squeegee their windshield. After the cleaning, the squeegee men would pressure the drivers for payment. One of the first things Giuliani did when taking over as mayor was to crack down on these “squeegee men”. In a short period of time he was able to eliminate their harassment. This small, tangible, success was a building block for the many large successes that he experienced later in his administration.
Surround yourself with great people. Great leaders have great insight. Great insight comes from a variety of sources. The best source for great insight is surrounding oneself with great people. Too many leaders believe that they are “anointed” through their election or appointment to a leadership position. This lack of humility and failure of perspective is one of the single biggest flaws of a true leader.
Servant leadership. A true leader realizes that he or she serves the organization. If a leader believes that they “rule” the organization, they will be an unmitigated failure. To paraphrase Psalm 19, great leaders ask to be free of presumptuousness. The servant attitude will place you in the right frame of mind to lead. It will give you the proper perspective and attitude. You will realize that you brief time at the head of the organization is one of service to the members.
Realize your weaknesses. A good leader realizes that he or she has weaknesses. No one leader has all of the traits and qualities needed for leadership. When a leader realizes this, they can balance their weaknesses with the strengths of others. I am not as good with budgets and financial forecasting. I am more of a big picture, idea man. I realized this shortcoming and, as a result, relied on the sound financial judgment of others to compensate. Leadership, therefore, requires the leader to be honest with themselves. Admit your shortcomings and be a leader by making sure you have a person or persons you can count on to fill the hole in your leadership void.
Motivate and Delegate. A great leader who surrounds themselves with talented people must take the next step by motivating those people to achieve. Allow the people you appoint to encounter challenges on a regular basis. Challenging talented people brings forth their true abilities and allows them to achieve great things. Create a sense of adventure in the job you task them. If highly driven people are not sufficiently challenged, they surrender to self-satisfaction and arrogance. Give them the vision of what you want to accomplish, the leeway to make it happen and the spark to ignite their passion for the project. Empowerment allows businesses to achieve great things. A team can achieve much more than an individual. If you delegate - and then empower the people you delegate - you show your true leadership character. Delegation without empowerment leads to the primary weakness of an organization – micro-management from the top. General George S. Patton once said: “Never tell people how to do things. Tell them what to do and they will surprise you with their ingenuity.” As the Chinese philosopher Lao-Tzu once said: “When the best leader’s work is done, the people say, ‘We did it ourselves’”. This is a great picture of what a leader does through empowerment.
Reflect, then decide. It is often said that the primary difference between intelligence and wisdom is experience. Experience provides you with the underlying facts that allow you to reflect. Experience teaches you what you need to determine the best course of action. It gives you the basis for making a more informed decision. Woodrow Wilson said, “One cool judgment is worth a thousand hasty counsels. The thing to be supplied is light, not heat.” Experience teaches that we should:
1. Be reflective. Consider all your options before making a decision.
2. Be ready to pull the trigger. After considering the options and the counsel of others, the time comes to make a decision.
3. Early analysis. You must begin the process of decision-making by analyzing all of the options at the earliest possible moment.
4. Use creative tension. As pointed out earlier, the contrarians in your organization are very valuable. Use their contrary views, thoughts and ideas as a catalyst to making the right decision. F. Scott Fitzgerald said that the “test of first-rate intelligence is the ability to hold two opposed ideas in the mind at the same time, and still retain the ability to function” – to make a decision.
5. Chart it, outline it, understand it. Most innovative thinkers understand the importance of reflecting before deciding. His “chart it, outline it, understand it” way of thinking helps a leader make the right decisions. This method of thinking allows a leader to: organize the steps to completion; factor in accountability; use creativity to solve problems and, think outside the lines and decide what’s best for the organization.
6. Establish priorities and stick to them. Once a goal is set, the steps to achieving that goal, within a reasonable time frame, must be established to provide a guidepost of achievement, a horizon of accomplishment.
Conclusion. Leadership is the most important ingredient that enables a business to achieve great things. In his book, Good to Great, James Collins underscores the importance of leadership in developing great organizations. A leader must possess many vital character traits. While no leader has all of these characteristics in equal measure, great leaders possess most of these core ingredients. Character, courage, compassion, vision, wisdom, conviction and doggedness are all aspects that a leader must draw upon if they are to lead an organization from “good to great”. Whether that “organization” is your family, or your business – you must be able to tap into these elements to achieve greatness.
I end with the reflections of Alexis de Tocqueville. de Tocqueville, a French writer, poet and historian, came to America to observe, first-hand, what made this country “tick”. He observed:
“I sought for the greatness and genius of America in her commodious harbors and her ample rivers – and it was not there . . . in her fertile fields and boundless forests – and it was not there . . . in her rich minds and her vast world commerce – and it was not there . . . in her democratic congress and her matchless constitution – and it was not there. Not until I went into the churches of America and heard her pulpits flame with righteousness did I understand the secret of her genius and power. America is great because she is good, and if America ever ceases to be good, America will cease to be great.”
About the author: Lewis is a Partner in the Tampa, Florida office of Butler Pappas Weihmuller Katz Craig, LLP. He has served as President of the Federation of Defense & Corporate Counsel (2005-06) and is Past President of the Florida Defense Lawyers Association. Mr. Collins currently holds the position of President of Lawyers for Civil Justice
Saturday, March 27, 2010
SIFTABLES - The Future Of Toys
As chips get smaller, computers get smaller and take on different forms. The technology allows for a greater combination of the what used to be purely physical that can now incorporate a digital component.
Davis Merrill created SIFTABLES, a fascinating technology that takes a basic block and transforms it into a mini-computer with the ability to sync and connect with other blocks to form a network. The toy may never be the same. This demonstration shows a very preliminary examination of the possibilities. Child development will be particularly affected by the technology as it creates greater interest from the young user and combines tangible usage as a new learning medium.
Davis Merrill created SIFTABLES, a fascinating technology that takes a basic block and transforms it into a mini-computer with the ability to sync and connect with other blocks to form a network. The toy may never be the same. This demonstration shows a very preliminary examination of the possibilities. Child development will be particularly affected by the technology as it creates greater interest from the young user and combines tangible usage as a new learning medium.
Tuesday, March 23, 2010
Clif Bar - A Model Of Growth
Gary Erickson had a problem. He was an outdoor enthusiast in need of nourishment but stuck with a stale tasting Powerbar he could not bring himself to eat.A seemingly simple problem, but one that becomes much larger for an entrepreneur. You either accept the mediocre product dominating the market or you get up and challenge Goliath with one of your own. Erickson, then the owner of a bakery, went to his mother's kitchen and created a great tasting energy bar for athlete's like himself. He turned his homemade creation into a nutritional powerhouse sold nationwide. The most amazing aspects of Clif Bar's ascent in the market is it's lack of outside funding, slow and organic growth dictated by the founder, and a rich pay day from Quaker that was refused.
As I have mentioned before, listening and selling directly to your customer is essential in discovering the best product. Erickson and his wife went to marathons, triathlons, and bike races talking to the very athlete's who needed their bar most. Great taste was the kicker but the functional value of the bar is what sold. Using little advertising, the company chose to grow organically with the founder keeping control throughout the process. Word of mouth is the most powerful form of marketing that exists and it can be very fast in certain circles. Athletes proved to be one of those circles.
There was a little luck involved in Clif Bar's success as the company started getting big just as a national demand wave started sweeping the country for nutritional foods and supplements. The company now found their product featured prominently in supermarkets as well as the small specialty stores to which they owed their start. Everything came to fruition through revenue. Erickson cut deals with his distributors for discounts in exchange for cash on delivery and was able to pay suppliers out of incoming revenue. It is because of this excellent money management that he found the coveted control.
When QUAKER came calling with a big buyout offer, temptation certainly struck but the offer was ultimately turned down. There seem to be two types of entrepreneurs. Some want to start a business to cash-out while others want to run the company as long as they are able. There is nothing wrong with either type it just comes down to a matter of personal preference. If the business is successful, money will be made in both scenarios. Ultimately, you are either OK with prolonged gratification or not.
Clif Bar is a rare example of this level of success but one that is as good a case study as any on small business growth into national brand. The expansion was slow, controlled, and done on revenue.
Thursday, March 18, 2010
How To Get Rich
How do you lay the foundation for getting rich? Its a process we all must have the patience and passion to attain.Mark Cuban understands how to get rich. His success has come from the ability to see opportunity and take the necessary steps to accomplish his goals. This is certainly an over-simplification, but understand that is a macro-approach to the situation. Gaining real wealth means expending all the resources at your disposal and committing the house when the right shot comes around. In youth, the stakes are high but manageable. I don't want this blog to always seem like we have nothing to lose because of our age, but it should drive home the point that now holds fewer consequences.
Even if the right opportunity is not in front of you at this moment, the preparation will make all the difference. Mark has always been very specific about the role discipline must play starting out. There are no shortcuts to real wealth and no gimmicks that will actually make this process any easier than the sweat and stress involved. The discipline takes on a few dimensions. The first is the discipline of saving money and shopping smart. No matter your salary, conserve as much money as possible, not for long term retirement, but in order to have the cash available to make a significant play at the right opportunity. Cash is king in business.
The next facet of discipline involves the patience it takes to wait for an unstable market to attack. Get the best deal possible and be ready for a bust at any time. Learning the business you want to pursue should include learning the historical causes of booms and busts. You must commit to understanding the data and the ramifications from numbers that seem inflated or overexposed. It is during these times whe you use that money you have been conserving. See the opportunity and seize it.
Monday, March 15, 2010
Clay Shirky: Cognitive Surplus
What do you do with your spare time? Are you improving yourself or society?
We grew-up on TV. It's a fairly simple fact that television changed the way we utilize our free time and it has been that way for over 50 years. Clay Shirky gives a phenomenally insightful speech at the Web 2.0 Conference on what this technology has done to the population and how we will buck the trend with a fundamental shift in the way we utilize media.
After World War II, the 5-day work week meant we had to learn as a population how to use our time away from work. Television and, as Clay singles out, the sitcom took hold and held a tight grip on our hours. For this period of time, there were few other options. There were no blogs, no podcasts, no file sharing, and no open-source technology. Well, the world has changed. In what Clay identifies as an Architecture of Participation, media is turning into a triathlon. The population now wants to consume, produce, and share their media. It's the time of the people.
Think of all the hours wasted staring at a television that provides little in return. Something as simple as sharing an idea means you have taken the time to change society. That idea can circle the globe within seconds of striking the enter key. And, certainly, doing something is better than nothing. Pick your platform and utilize it. Who cares if your ideas are not entirely original? Piggy-back on the wisdom of others. Sharing is still a pillar of new media, just give the originator their credit.
Clay says some extremely insightful things as he surmises the argument. The future is in participation. He says, "Media that is targeted for you that does not include you is not worth watching." Many industries dying a slow death can attest to this (newspapers, music, etc.). Locking out the user sets the stage for a major coup. The over-throwers are the same users you used to call customers.
We grew-up on TV. It's a fairly simple fact that television changed the way we utilize our free time and it has been that way for over 50 years. Clay Shirky gives a phenomenally insightful speech at the Web 2.0 Conference on what this technology has done to the population and how we will buck the trend with a fundamental shift in the way we utilize media.
After World War II, the 5-day work week meant we had to learn as a population how to use our time away from work. Television and, as Clay singles out, the sitcom took hold and held a tight grip on our hours. For this period of time, there were few other options. There were no blogs, no podcasts, no file sharing, and no open-source technology. Well, the world has changed. In what Clay identifies as an Architecture of Participation, media is turning into a triathlon. The population now wants to consume, produce, and share their media. It's the time of the people.
Think of all the hours wasted staring at a television that provides little in return. Something as simple as sharing an idea means you have taken the time to change society. That idea can circle the globe within seconds of striking the enter key. And, certainly, doing something is better than nothing. Pick your platform and utilize it. Who cares if your ideas are not entirely original? Piggy-back on the wisdom of others. Sharing is still a pillar of new media, just give the originator their credit.
Clay says some extremely insightful things as he surmises the argument. The future is in participation. He says, "Media that is targeted for you that does not include you is not worth watching." Many industries dying a slow death can attest to this (newspapers, music, etc.). Locking out the user sets the stage for a major coup. The over-throwers are the same users you used to call customers.
Sunday, March 14, 2010
Talent Development
If you look carefully at the former employers of many of the most successful entrepreneurs and executives in the world, you will start to notice a pattern. Certain companies have an uncanny ability to develop talent. This doesn't happen by chance, but because they take the time to find potential and nurture growth. GE, Proctor & Gamble, Coca-Cola, and Microsoft are known to be some of the best and they invest a great deal of money and resources to keep it that way.In my business, the William Morris Agency mailroom was the ultimate place to start a career. Young graduates would take substantial pay cuts (and check their pride) in order to deliver mail for the talent agency and it's stable of stars. Michael Eisner, David Geffen, and Barry Diller are just a few of the media industry legends willing to work their way from the bottom-up. While there are now more agencies to choose from, the mentality is still the same. Work the long hours, accept the low pay, and learn all you can. If you don't work out, there are 100 other kids willing to take your spot. This program is a little more extreme than the talent development programs at your typical company, but there is something to be said for succeeding in an environment like this.
I started thinking about talent development while reading this article from Bloomberg Business Week about the next generation of tech companies being started and/or funded by former Google employees. The conglomerate has produced an unbelievable number of start up founders that are revolutionizing all areas of technology. Those who are not starting the companies are investing and helping in early-stage development. It should be said that the ex-Gogglers have more money than your typical young, former employee, but it's more than just the money that is creating all this success and wealth. It's about the network and experience that comes with working at Google. These entrepreneurs and investors have direct involvement in Justin.tv, mint.com, Foursquare, Twitter, Facebook, Tapulous, Y Combinator, and bit.ly to name a few. The network is kept alive through events organized for the purpose of sharing information and ideas.
So where is the lesson here? Really it is two-fold. First, do your research on the companies who will identify your talent and open doors through development for the future. Sometimes there may be a pay cut from other opportunities, but understand it as an investment in your future. The second lesson is the importance of recognizing people with whom a relationship will be mutually beneficial and fighting to keep that connection alive.
Saturday, March 13, 2010
The Future of Money
Could the financial transaction industry be going the way of the music, television, and publishing industries?The situations feel similar. A tight, protected system built over many years and controlled by a select group of super-companies that have free reign to charge and operate how they please. Then, a group of developers come through and make the entire business open, easy, and cheap. The internet provides the opportunity and the entrepreneurs create the innovation. WIRED proposes the idea that we may be in for a fundamental shift in the way we transfer money with Paypal as the instigator.
Creating the credit card was the first monetary revolution that our generation accepted as standard. In fact, I can't remember life without plastic money. The change from cash only made banks more powerful as they could charge fees for merchants to accept this form of payment. It's really the ultimate partnership between the card companies and the financial institutions and it's one that costs the business owner 6 times what that purchase would cost with cash.
Paypal used to just be the primary form of payment on Ebay, but has done something I believe most large tech companies will do in the future; open the code to developers and let them create new innovations that originate new revenue streams for the company. This country is full of highly educated tech developers lacking the proper established networks and systems used to create highly innovative new companies. When Paypal opened up, thousands of coders came in and made the business of transferring money easier and available on whatever platform you use most. It could be on your smart phone, through social media, and even through subscription services available on ITUNES. They are effectively taking the arduous 10-step process of the past and breaking it down to 3-7 steps for a complete transaction.
Thursday, March 11, 2010
Discover Your Business
Sometimes to discover your business, you just have to start your business.Steven Blank defines a start up as an organization formed to search for a repeatable and scalable business model. The business model essentially describes how your company will make money. Ask any leader to describe their business model and I can almost guarantee you won't get anything resembling a short answer. The reason is simple, in order to maximize profits and efficiency, the boss has to understand the smallest nuts and bolts of the business. This comes from experience and, most of all, the desire to have this knowledge. One of the benefits of starting a company is that you become the first and hardest working employee. There isn't a job too big or small for someone who can't afford a staff.
All this learning allows for tweaking or complete shifts in the business philosophy as the search continues for a repeatable and scalable model. It's where you meet customers and learn about your product from an outside perspective. It's where you learn the real profit margin on each unit delivered. It's where you discover your business.
The hardest part of this early stage development is the lack of money and direction. This is where that eternally optimistic voice in your head must keep reinforcing faith in your instincts and the product. As this NY Times article points out, even Pandora took 348 pitches to land VC financing.
Monday, March 8, 2010
The World's Most Innovative Companies
Fast Company's list of the World's Most Innovative Companies is a fascinating look at the speed required to keep business on the cutting-edge. A leader's ability to anticipate the future and answer consumer's questions before they ask is crucial to constantly creating new products and services that will increase revenue. Here are a few highlights from this year's list:
Sportvision: The company that brought us the yellow first down line and the digital strike zone is now breaking down every aspect of a single play in Baseball. Two cameras set up at the stadium will capture 600 locations and allow managers to determine which player has the best knack for play-making by analyzing their movements to the ball and the player's range. The technology also breaks down a pitcher's trajectory and how prone he is to be stolen against. Yes, this takes the feel out of a game that is very much instinct and reaction, but it is still pretty cool to know.
Glam Media: I include this example only to show how new media is transforming how we receive information. The company is a network of 1,500 blogs targeted for women. It's significance is in the ability to provide so many marketing opportunities from one media company (a right once reserved for only highly diversified newspaper and TV/Movie media conglomerates) to it's advertising partners. The business thrives on it's innumerable micro-audiences still of high value to marketers.
Ngmoco: I previously spoke of the incredible business mobile app development has become. Short for next generation mobile company, NGMOCO creates games, mostly for the iphone, and gives them away for free. Their revenue comes from virtual goods and services layered into the programs to enhance game play and sold for a fee. The company also launched it's PLUS+ network in order to create a community to display scores and challenge others through social media.
Katalyst: I like this company for so many reasons. Being in the media industry, I understand very clearly the dramatic shifts taking place and threatening the hierarchy that has been strong for about 85-90 years. Ashton Kutcher, the founder, has taken his production company to the front of the curve. Most movie stars simply use their celebrity to setup production companies to produce their movies, but Ashton is using his status to help large corporations reach a younger audience through new media. He uses the web to showcase his series, shorts and help promote the companies through his extensive social media network. I believe he has the potential shift entire marketing campaigns and media strategy.
Dreamworks Animation: The movies are not why I chose to include them on the list. It's because they are now an incubator for new technology developed to enhance the movie experience which is spun-off to the Silicon Valley community. They are far more than a movie studio now.
Scribd: Self-described as a community of 'millions of readers, millions of documents', this service allows anyone to upload, comment, vote up or down, and tag any document. The service is easy-to-use and let's anyone share their findings or read the findings of others. There are also partnership deals with large media companies that provide the opportunity to read books and newspaper articles both for free and at a fee.
There are so many other innovative companies changing the world. Take some time and learn about the advances. Intellectual curiosity is an important trait to develop in your business career.
Sportvision: The company that brought us the yellow first down line and the digital strike zone is now breaking down every aspect of a single play in Baseball. Two cameras set up at the stadium will capture 600 locations and allow managers to determine which player has the best knack for play-making by analyzing their movements to the ball and the player's range. The technology also breaks down a pitcher's trajectory and how prone he is to be stolen against. Yes, this takes the feel out of a game that is very much instinct and reaction, but it is still pretty cool to know.
Glam Media: I include this example only to show how new media is transforming how we receive information. The company is a network of 1,500 blogs targeted for women. It's significance is in the ability to provide so many marketing opportunities from one media company (a right once reserved for only highly diversified newspaper and TV/Movie media conglomerates) to it's advertising partners. The business thrives on it's innumerable micro-audiences still of high value to marketers.
Ngmoco: I previously spoke of the incredible business mobile app development has become. Short for next generation mobile company, NGMOCO creates games, mostly for the iphone, and gives them away for free. Their revenue comes from virtual goods and services layered into the programs to enhance game play and sold for a fee. The company also launched it's PLUS+ network in order to create a community to display scores and challenge others through social media.
Katalyst: I like this company for so many reasons. Being in the media industry, I understand very clearly the dramatic shifts taking place and threatening the hierarchy that has been strong for about 85-90 years. Ashton Kutcher, the founder, has taken his production company to the front of the curve. Most movie stars simply use their celebrity to setup production companies to produce their movies, but Ashton is using his status to help large corporations reach a younger audience through new media. He uses the web to showcase his series, shorts and help promote the companies through his extensive social media network. I believe he has the potential shift entire marketing campaigns and media strategy.
Dreamworks Animation: The movies are not why I chose to include them on the list. It's because they are now an incubator for new technology developed to enhance the movie experience which is spun-off to the Silicon Valley community. They are far more than a movie studio now.
Scribd: Self-described as a community of 'millions of readers, millions of documents', this service allows anyone to upload, comment, vote up or down, and tag any document. The service is easy-to-use and let's anyone share their findings or read the findings of others. There are also partnership deals with large media companies that provide the opportunity to read books and newspaper articles both for free and at a fee.
There are so many other innovative companies changing the world. Take some time and learn about the advances. Intellectual curiosity is an important trait to develop in your business career.
Saturday, March 6, 2010
Execute
Consultants tend to be good consultants because they have the ability to analyze information and suggest solutions. Analysis is an important part of business but has nothing to do with how successful your company will be. The single determining factor in achieving your goals is the ability to implement. In other words, make things happen.
Let's back-up for a second. I am not saying that having the numbers and understanding your business won't pay dividends in the long run, I am simply saying that any good executive or entrepreneur has the the ability to 'Just do it'. The importance of this ability for entrepreneurs is made expertly by Mark Suster.
What does it mean to make things happen? It means to close the sale, convince suppliers to discount prices, hire qualified people, fire under performing employees, and constantly advance forward. In short, pay the bills and expand.
In my business, I am tasked everyday with delivering on near impossible tasks no matter how mundane without excuses. There is no room for being passive and you better have a good reason for not executing. It is part of our internal training. Our company is so successful because it is filled with self-starters and doers. This is not to say that everyone must operate at this level or that it's the only way commerce functions, but it could be the difference between your start up becoming a profitable business or your department meeting it's yearly targets.
Be aggressive, execute, and make things happen.
Let's back-up for a second. I am not saying that having the numbers and understanding your business won't pay dividends in the long run, I am simply saying that any good executive or entrepreneur has the the ability to 'Just do it'. The importance of this ability for entrepreneurs is made expertly by Mark Suster.
What does it mean to make things happen? It means to close the sale, convince suppliers to discount prices, hire qualified people, fire under performing employees, and constantly advance forward. In short, pay the bills and expand.
In my business, I am tasked everyday with delivering on near impossible tasks no matter how mundane without excuses. There is no room for being passive and you better have a good reason for not executing. It is part of our internal training. Our company is so successful because it is filled with self-starters and doers. This is not to say that everyone must operate at this level or that it's the only way commerce functions, but it could be the difference between your start up becoming a profitable business or your department meeting it's yearly targets.
Be aggressive, execute, and make things happen.
Thursday, March 4, 2010
Pivot: A Turning Point in Web Exploration
Pivot may revolutionize the way we use the internet.
Gary Flake, founder and director of Live Labs at Microsoft, demonstrates a new technology that allows for the discovery of patterns and links invisible in standard web browsing. It essential has the ability to sort not only massive amounts of data but also content. Use of the internet shifts from just surfing page-to-page to actually becoming a web of connected sites, information, and content. The combination of all the knowledge and insight from the innumerable sources of the web defined, sorted, and well-presented could define what it means to be connected in the future.
Gary says this is something in between searching and browsing. It is that middle road that makes it so innovative. You would have the ability to operate on a much larger scale and move from many things to many things as opposed to a tedious search of fragments.
Gary Flake, founder and director of Live Labs at Microsoft, demonstrates a new technology that allows for the discovery of patterns and links invisible in standard web browsing. It essential has the ability to sort not only massive amounts of data but also content. Use of the internet shifts from just surfing page-to-page to actually becoming a web of connected sites, information, and content. The combination of all the knowledge and insight from the innumerable sources of the web defined, sorted, and well-presented could define what it means to be connected in the future.
Gary says this is something in between searching and browsing. It is that middle road that makes it so innovative. You would have the ability to operate on a much larger scale and move from many things to many things as opposed to a tedious search of fragments.
Monday, March 1, 2010
It Must Be A Marketing Problem
Steve Blank knows the difference between a marketing and a sales problem.
The first step in solving this problem is getting between the departmental finger pointing and investigating the nuts and bolts of how the product is moved to the consumer.
For any budding company, a great deal of the first sales come from friends and contacts of its board members and employees. As Steve points out, this is can be a potentially significant problem as it inflates sales numbers and sets impossibly high goals and projections. In addition, it keeps the sales team from really getting out in the field and interpreting the problem of the customer and solving that problem.
A company that lacks customer discovery is lost. They have no idea where to enhance or adapt the product and cash is pouring out. Steve says there is not better time to get back to basics and fire the wayward employees. The founder needs to reclaim his job as the most passionate and engaging salesman for his product.
The first step in solving this problem is getting between the departmental finger pointing and investigating the nuts and bolts of how the product is moved to the consumer.
For any budding company, a great deal of the first sales come from friends and contacts of its board members and employees. As Steve points out, this is can be a potentially significant problem as it inflates sales numbers and sets impossibly high goals and projections. In addition, it keeps the sales team from really getting out in the field and interpreting the problem of the customer and solving that problem.
A company that lacks customer discovery is lost. They have no idea where to enhance or adapt the product and cash is pouring out. Steve says there is not better time to get back to basics and fire the wayward employees. The founder needs to reclaim his job as the most passionate and engaging salesman for his product.
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