Monthly Archives: January 2009

Daydreaming

 

As soon as I saw the overgrown grass on my recce, I knew that this was the image I wanted to take. At the time it represented potential – a young person dreaming about what their life would be like. Now it reminds me of the beautiful moments in life that are transitory – the perfect afternoon at the beach, your wedding day, your first visit to Paris … moments that can be captured in images but never replicated.

The model was 13 at the time of this shoot – right in the demographic of Dolly magazine who bought an image in this series for $200 back in ’96. I don’t know if it was ever published but if it was, I hope the advice in the article was better than is normally the case.

Jobsolescence

Many of us (myself included) love Steve Jobs, but that’s the problem – we can’t imagine Apple without him.

Today I’m reminded of Seth Godin’s comments during the launch of his Tribes book (in response to a question from the floor at 1hr 23m):

“Apple’s stock going down every time after time someone thinks Steve Job is sick? That’s a huge ego play for Steve – he shouldn’t do that. Steve should have a bench of eight people who are leading the tribe in eight really useful different directions so it won’t matter – he’s going to retire one day and you have to plan for that.”

The Telegraph says that Apple needs to act fast on Steve Jobs succession plan, but that would make it a reaction rather than a plan, right? A succession plan is something that you organise before the CEO gets sick, avoiding a drop of 8% in the company’s share price.

I think everyone should have a succession plan, including employees. For a few years now I’ve had the attitude of making myself redundant in any role I find myself in – if my employer or client still needs me after a long period of time, I can’t have done my job properly.

If in two years I’m the only one who can do my role, I’ve failed to share information and train others. If I’m the only champion for an idea after six months then I’ve failed to either create a valuable idea or to spread it. Instead of attempting to cling to my current role, I should be looking to outgrow it, ready for the next challenge. And as I do this I’ll add more value to my employer/client by sharing my knowledge and skills with other employees. In turn this makes more valuable to this client and my next – it’s a virtuous cycle.

Of course, I’ve never succeeded in making myself redundant, but I’m slowly getting better at it. Maybe one day you and I can make the share price of company go up on the day we leave, rather than down.

Get well, Steve.

Art v Responsibility

In the book ‘U2 by U2’, Bono speaks about the song ‘With or without you’:

“The lyric is pure torment. One of the things that was happening at the time was the collision in my own mind between being faithful to your art or faithful to your lover. What if the two are at odds? Your gift versus your domestic responsibility? […] I remember thinking: ‘Is the life of an artist? Am I going to have kids and settle down and betray my gift or am I going to betray my marriage?'”

Adopting ‘art’ to mean the broadest sense of the word – our passions and raison d’etre – I suspect many of us feel this conflict and some of us are deeply affected by it. Fortunately Bono goes on to answer to his own question:

“I thought these tensions were going to destroy me but actually, in truth, it is me. The tension, it turns out, is what makes me an artist. Right in the centre of a contradiction, that’s the place to be. […] If I had cut loose, what would have become of me? I remember looking at [artists who had] acted with abandon, and had lost marriages, bands, friendships, all in pursuit of the muse. But the muse is taciturn and can abandon you, leaving you with nothing. My muse has different demands. If I’d gone that route, many of my best songs would have gone unwritten. Or if I’d taken the other road, which is straightforward, given myself over to the domestic side of life, the songs would have been lost. It’s the tension between the two that keeps me sharp. You don’t have to resolve them, just don’t go too far either way.”

I suppose this is one aspect of maturity – to be content with and use this tension rather than go to extremes to avoid it. No doubt the angst in the meantime is another dip to push through in order to be successful in both aspects of our lives.


Book Review: The new business road test

Who is it for?
The new business road test is a must-read for anyone wanting to start a new business, now or in the future, and should be read before writing a business plan. Reading the book will help you identify which of your business ideas are likely to be viable and which should be thrown in the bin.

Who wrote it?
John W. Mullins, Associate Professor of Management Practice in Entrepreneurship at the London Business School.

The core idea
John W. Mullins contends that there are seven domains that a business must be tested against and pass in order to be successful:

– Will the fish bite?
– Is this a good market?
– Is this a good industry? (Porter’s forces)
– How long will your advantage last? (Building a sustainable advantage)
– What drives your entrepreneurial dream? (What are your personal goals?)
– Can you and your team execute?
– Your connections matter – which matter most?

Why I liked it
This book gave me clarity in an area where entrepreneurs are typically weak – in performing their due diligence. It has allowed me to systematically look at each business idea and evaluate it objectively, without much overhead.

I think it’s compelling enough to make this bold statement, an echo of a statement in the book, that if more entrepreneurs read this book or resources like it we’d have stronger economies. Entrepreneurs are both a scarce resource and the engine for our economic growth and far too often they waste their time, investment opportunities and considerable talent on projects that have no chance of succeeding.

Balance it with:
The Art of the Start by Guy Kawasaki, which covers starting a venture from a holistic, passion-centric position.

Blue Ocean Strategy, which (in spite of being IMHO a very dry book) helps entrepreneurs see beyond fighting in competitive markets (a red ocean strategy) to find new markets where you have no competition (a blue ocean strategy).

Middlemen Gatekeepers

Recently my brother and I visited a high street, high-end audio equipment retailer. In the hushed tones of faux luxury we browsed under the gaze of a self-important salesman. My brother didn’t need him – he knew all the models, the specs, comparison prices and that some of these very expensive hi-fi units were already superceded. We walked out without conversation or purchase.

The concept of a middleman as a gatekeeper – someone you must go through to purchase – died several years ago. The only way to survive as a middleman now is to add value that a customer needs and can’t obtain on their own. Be an advisor, simplifier, connector, risk carrier, troubleshooter … whatever your prospective customers need.

A reason to come

Near my office is a cafe that has practically no foot traffic, is almost always empty and changes hands every year or so. For each new owner the temptation is obvious – a fully fitted kitchen & cafe with low rent. There’s also a conceit – ‘I can run this business better than the last guy’.

Sadly each of the three owners I’ve met ran the cafe in exactly the same way – as a completely conventional cafe inviting passers-by to drop in for a coffee or light snack. It’s a business model that requires plentiful prospective customers and a scarcity of competition. Funnily enough, that kind of location doesn’t come with low rent.

“Build it and they will come” doesn’t apply for any business – you need to give people a good reason to visit. A reason worth stopping what they were doing, traveling at their cost to your business and giving you their hard-earned cash. If you don’t know what that reason is, your prospective customers certainly don’t.

The world outside

I was talking with a shop assistant recently – her job was not secure and her mother was worried that “at nineteen you’ll lose the only job you’ve ever had”.

Why would someone cling to a job where they sit alone in an empty store? If it appears foolish it’s because we can see possibilities for her that she can’t. But from her perspective she’s safe inside her small world – the outside world offers only fear.

The key is to realize that we’re all in the same situation – no matter how large our world, it’s all we know. You’ll never know what possibilities lie outside it unless you step out and take a look.

Perhaps the Men in Black say it best:

Short term thinking

Here’s a partial transcript of the Australian TVC for Panadol Back & Neck:

“Back pain can really get in my way. That’s why I rely on new Panadol Back & Neck. It’s active ingredient works where I need it fast so I don’t need to hold back. Panadol back and neck is my choice.”?

What’s the “active ingredient” in Panadol Back & Neck? 500mg of paracetamol. That would be the same as the Panadol that first went on sale in the UK in 1956. So what’s “new”? The name & packaging.

Head & Shoulder’s have just started advertising a “new Hair Retain for Men” shampoo product (a subject near and dear to my heart). The active ingredients? The same as normal Head & Shoulders. So what’s “new”? The name & packaging.

I can understand the need to remove consumer’s uncertainty – a consumer stands at the supermarket shelf looking for a product that solves their particular problem. If it’s back pain, they want to find a box that says ‘relieves back pain’.

And I can understand the need to promote the benefits of a product – no doubt there’s some link between scalp health and reduced hair loss that the Head and Shoulders team can point to (but seemingly not on their website). And I don’t doubt for a second that Panadol Back & Neck relieves back and neck pain.

What’s not reasonable, however, is to imply that you have a new product with remarkable benefits, when it’s the same unremarkable product that you’ve been flogging for years. In doing so these companies are purchasing a short term boost in sales by withdrawing part of the trust they have deposited with us over the years. And with this kind of behaviour, there isn’t much trust left.

Interpretation and comparison

I grew up on Sanitarium Weet-Bix for breakfast – my folks bought it because it was healthy with only 3.3% in sugars. Moreover, Sanitarium took the high moral ground in the 80s and 90s, waging war with Kellog’s Nutrigrain and others by pointing out that their high sugars content (33% for Nutrigrain) was not at all nutritious.

Since then Sanitarium have presumably decided that making money is more important than health, and have released two Weet-Bix Crunch products – Honey and Cocoa – in which the sugars content is 29.4% and 28.7% respectively. Ultimately that doesn’t bother me – it’s their brand and they can dilute it if they want to.

What does bother me, however, is that having set the brand expectation of low sugar products over many decades of commitment to that brand promise, the packaging for the 28.7% sugar Weet-Bix Crunch Cocoa tells me only how good it is:

I used to be able to trust Sanitarium to tell me what was healthy for me – I could buy any of their products without reference to the nutritional panel. Now I can’t. Now I must interpret what they say about their products, and compare the nutrional content of their products to those of other brands. And as soon as I’m forced to do that, I have no brand preference for any of the entire Sanitarium product range.

The dumbest part of this is that we’ll all find out anyway, so it can be stated upfront. Find a way to prominently state that it’s got a higher sugar content than we expect and we might buy it as a treat for our kids anyway.

Trust needs no interpretation or comparison.