Posted by Jonathan Iannacone on Mon, Nov 26, 2007 @ 03:02 PM
I just finished re-reading Malcolm Gladwell's Blink and wondered to myself if there is a way to "thin slice" successful business owners and executives. By this I mean, if you drown out all the noise and all the variables that could possibly be measured, are there a simple few things that determine success? With this headset I began to contemplate the characteristics of the most successful business owners and executives I know to look for a common thread. The age, experience and personalities are all quite different as are the size and industries of the organizations they excel in.
The commonality is in the way that they approach their work. Two habits pervade all that they do: Focus and Urgency.
Habit #1 Focus:
Everyone works hard (or at least most do), but most people work hard at the wrong things. They are inefficient or irrelevant. Those that are exceptionally successful know what to focus their efforts on. They know what their strengths are and they concentrate on those and get results. They are able to think strategically about what needs to get done and then identify the roadmap to get there. Lou Holtz calls this WIN-What's Important Now, David Allen calls it Getting Things Done. Whatever you call it, it boils down defining what needs to happen and then orchestrating it through action.
Habit #2 Urgency
Ever wonder how you manage to clear your desk before you leave for vacation or how a huge project or order for an important customer gets completed when it absolutely has to. Why, because of deadlines. Many people fail to set or fail to meet deadlines. They are late to meetings, late on project deadlines, do not follow through. The successful people approach their work with a sense of urgency. They have their own internal deadlines that are more stringent than the world around them. If something is due Friday it is finished on Tuesday. If a call or email message with an opportunity comes in, it is answered before the day is out. Something deep inside of them screams "Don't Let It Wait!" Because of this they are better prepared and more adaptable to changing conditions and opportunities.
For success, focus and treat your work with a self-imposed sense of urgency.
Posted by Jonathan Iannacone on Sun, Nov 25, 2007 @ 03:01 PM
What can the movies tell us about business? More than you might think. There are many movies out there that offer rich case studies of what drives success and failure in business. I have chosen a few of my favorites which I go back to periodically for inspiration and entertainment.
Jerry Maguire is one of the few movies that really gives a first hand account of the unbelievable highs and lows you experience that first year as an entrepreneur. His story is of a successful sports agent that finds his conscience. We watch him as he goes from unfulfilled business success to the brink of total disaster and then finally emerges as the triumphant agent who really does care.
It starts with a mission
Jerry's journey starts when he makes the rash late night decision to write a mission statement and distribute it to everyone in his company at their annual conference. He describes it: "I had lost the ability to B.S., ... it was the me I had always wanted to be."
That is how many businesses begin, with the search and belief that there is something better to be created. An ideal. For anyone who is considering going into business, I strongly encourage you to write a mission statement as early as possible. For me, my first mission statement acts as a compass that represents the pure vision of what I hoped to create. Surely there are some things that change over time, but the values and enthusiasm should not.
Who's coming with me
After the release of his mission statement, Jerry is unceremoniously fired and loses all but one of his clients on the first day. As he packs his things to leave the office for the last time he fully expects his assistant to come with him. She does not. In a desperate attempt he implores the office, "if anybody else wants to come with me, this moment will be the ground floor of something real and fun and inspiring and true in this godforsaken business and we will do it together!" All decline except for one.
When you take the big leap, many clients, colleagues, friends and family you thought would be with you decline to come along for the ride. Starting something new is not for the faint of heart. Be sure in what you believe and start with the expectation that you will carry the vision alone because many times it will feel that way.
To the brink and back again
I also like how Jerry Maguire shows us how low the lows can get. He remarks, "Twenty four hours ago, man, I was hot! Now... I'm a cautionary tale. You see this jacket I'm wearing, you like it? Because I don't really need it. Because I'm cloaked in failure!" In exasperation he utters what I feel is the best representation of what it is like to be an entrepreneur in year one: "It is an up-at-dawn, pride-swallowing siege that I will never fully tell you about."
Entrepreneur's remorse, which is a natural feeling as you navigate the quagmire that is a brutal learning curve. Part of you regrets the day you started, but for those that succeed the belief that you are fighting the good fight wins out.
Listen to your conscience
In the movie, Jerry constantly remembers truisms spoken by his mentor Dickie Fox. These ground him and act as his conscience as he does business. As we see Jerry finally succeed on his terms, you witness the well up of emotion and satisfaction that comes with building something you are proud of. Dickie Fox says, "I'm not saying I have all the answers. I have failed as much as I have succeeded. But I love my life. I love my wife. And I wish you my kind of success."
Remember what you want to create, cling to it with all your might and enjoy the ride.
Posted by Jonathan Iannacone on Sat, Nov 24, 2007 @ 02:59 PM
If you've scheduled an appointment with us over the past few weeks you might have noticed that parking has been quite scarce in Back Bay lately. This is because there are no less than three major movies filming in our neighborhood with more set to film in the next few months. You might ask yourself, has Boston suddenly become the "it" place to be? Why here, why now? I can tell you the simple answer...Tax Credits.
According to an October 12th Boston Business Journal article "A Trickle-Down Story from Hollywood", major movies have spent $154 million in Massachusetts since a new Tax Credit came into effect in 2006. This compares to $67 million spent over the 7 years before the legislation. I would say the credit has been pretty effective so far, wouldn't you?
If you can look past the inconvenience of that large production trailer sitting in your preferred parking spot, you will arrive at a fundamental truth: the Tax Code might be the single most effective tool the government has to influence behavior. Think 401ks, home ownership and sales tax holidays. Using the Tax Code works and it helps to supercharge economic activity.
These movies need actors, extras, costumes, makeup artists, storage facilities and movers. This is in addition to places to eat, sleep and shop. Translation: jobs. So the next time you see Kate Hudson walking down Newbury Street, be sure to thank her for doing her part to help the Massachusetts economy keep on rolling.
All the recent movie activity has given me an itch to write about what you can learn about business at the movies. In the next few weeks, I will pick a few favorites that I feel teach the most about successful business practices. Get your popcorn ready!
Posted by Jonathan Iannacone on Fri, Nov 23, 2007 @ 02:57 PM
Over the years I have had the privilege of working with many different businesses of varying sizes and industries and I'll let you in on a little secret...they are not as different as you might think. Take away a few zeroes or some industry specific language, and the drivers for success are pretty much universal. So what I am about to tell you applies to all businesses and in particular start-up businesses.
The Numbers
I am a numbers guy, so I will begin with a few. Depending on what and where you read you will find the following statistics:
50% of businesses will fail in the first year
80% will fail in the first five
96% will never reach $1 million in revenue in a year.
Not very encouraging.
These businesses were started by passionate entrepreneurs who put in long hours and painstaking efforts. However, in the end, 80% will walk away from their dream and 96% will only be marginally successful. Why?
Reason #1, They forgot who was king.
Cash, greenbacks, clams, dough, dead presidents...whatever you call it, cash is king. The sad truth is that many businesses are doomed from the start because the business began without enough capital to survive.
The main mistake is that the business only has enough funding if everything goes perfectly. But everything never goes perfectly...businesses are cyclical, costs overruns are normal when starting out, and it takes time to get the word out. Before long, the owner is digging into personal funds earmarked for something else and well on the way to increased stress and decreased credit scores. The lack of capital starts to limit spending decisions. Key purchases, personnel hires and marketing spends are all passed on because there is not enough money to fund them. In the end, the business fails not because the business model was flawed but because there was not enough cash to execute the plan.
Reason #2, They need their vision checked
Most people that start businesses fall into two categories: worker bees or big idea machines.
The worker bee usually starts a business that resembles their previous job or perhaps is something that they like to do and are already good at. The problem with worker bees is that they are nearsighted. They started the business hoping for an idealized version of a job they like to do, but did not factor in the infrastructure necessary to make it grow. In the end, they create a job that was like their previous job with one important difference...it is much harder.
The big idea machine on the other hand sees the big picture with hundreds of employees, multiple offices, big national write ups and industry changing business practices. Their shortcoming is that they are farsighted. From day 1 they go to work on complex messaging, large partnerships and expensive initiatives. The employees of the business try valiantly to implement the ideas which are really suited for a mature company with thousands of customers. Before the business even has a chance to do any of these initiatives well, the big idea machine is already touting the next greatest idea. Ultimately, the company ends up doing nothing very well and frustration overtakes everyone involved.
Know your destination, what you want your business to eventually become and then define how you are going to take a meaningful step towards that goal in the next 90 days. Why do you think new Presidents get so much accomplished the first few months they are in office? I believe it is their 100 day plan, a plan that focuses on things that can be successfully completed. If only the President would continually implement 100 day plans over a 4 year term, imagine how much would get done!
Reason #3, They don't fail enough
This may seem counter-intuitive, but bear with me. Failure is part of every business, so it is best to embrace it from the start. Too many entrepreneurs are afraid to fail and as a result end up failing only once and then its over. They wait too long and bet too big. A business should be constantly learning about its customers, testing new things and pushing the envelope. Understand that small failures are inevitable, but total failure is not an option. As the saying goes: Fail Fast, Fail Often, Fail Cheap. Do not wait for perfection, get to market and start tinkering (messaging, pricing, offering, servicing).
Avoid these three pitfalls and you will be well on your way to creating a successful business.