Beginner Business

My favourite work tool is a notebook and a pen.  (Lately it’s a DeSerres notebook, which is kind of like the Moleskines but a more convenient format, and a Uni-Ball JetStream pen, which is like a gel but without the smudging.)  Lately I’ve taken to slapping photos on them, partly so I can tell my various black notebooks apart, and partly because I think it’s cool.  My last inspirational image was “Epic Failure,” which is a personal entrepreneurial goal.  This latest one inspired me from the 100 Photographs that Changed the World:

A rebuttal to the Tipping Point brings up interesting points, but seems to miss some important points.

Malcom Gladwell’s famous book The Tipping Point put forward the idea that small numbers of people have unusual influence on the spread of ideas and even disease.  However, recent work by researcher Duncan Watts, described in an article in Fast Company (Feb 2008) suggests that these “Influentials” don’t really have as much influence as previously thought.  In fact, anyone can become a major transmitter of an idea.

While the FC article brings up some important counter-arguments to the Tipping Point suggestion that viral effects depend on a small percentage of individuals, it only partly covers the importance of Stickiness.  In the Tipping Point, Gladwell explains that the “Law of the Few” isn’t enough to make a new product or idea popular: it first has to already be “sticky,” meaning that it’s the kind of thing that people are highly inclined to remember and share with others.  However, recent work by researcher Duncan Watts suggests that

This comes up briefly in the FC article: “Watt’s theory says the emergence of a trend depends not on Influentials, but on the susceptibility [emphasis added] of the public to the ‘virus.’

That’s basically what Stickiness is.  If the public is open to accepting and re-transmitting an idea, then anyone who sees it will be more likely to share with others.  That depends a lot on how memorable the idea or product is, and the context (another Gladwell “law”).

The major contribution of Watt’s research seems to be that there’s a lot more randomness going on than the Tipping Point would have you believe.  Sometimes great ideas get ignored, and sometimes dumb ideas get spread through dumb luck.

I stumbled on this, another example where strategy of all kinds is “the same at the top.” This is a list of principles created for WWI dogfighting by the teacher of the Red Baron:

http://en.wikipedia.org/wiki/Dicta_Boelcke

I find it really interesting that in business, often it’s about “fractal”-based success. That is, just as fractals are complex graphics based on very simple rules, business strategy is about learning to use a few extremely important maxims extremely consistently. Sort of like, sure 80% of your decisions and actions might not fall within these, but your ultimate maxims decide your fate in those 20% of the decisions that make 80% or more of the difference. The maxims basically prevent you from making really dumb decisions in the situations that are most likely to impact your success.

I think it’s a big thing, the “ultimate maxims” thing.

Part of it, that you can see from the “Dicta,” is identifying the key dynamic. In WWI, one of the biggest things was that whoever got behind the other and started shooting first, tended to win. Once you know that, you build an entire strategy around it, and until the situation changes, you have the most effective strategy. In the meantime, a lot of the other people are just trying to “be really good fighters” and so they lose, since they’re concentrating on 100% rather than being nearly perfect at the crucial 20%.

Surprisingly, the Red Baron wasn’t known for being the most brilliant fly-boy, or the most acrobatic pilot.  He was a good shot, and more importantly, a stickler with the rules. The right rules.

Ultimate maxims teach us a lot about how to actually put the 80/20 rule into practice:

1. Figure out the crucial dynamic.
2. Develop a strategy based on exploiting this dynamic.
3. Create a set of maxims that ensure you never screw up the most important things.
4. Follow the maxims more strictly than you’d like to.

The title of a post on Tom Peter’ blog caught my eye:

To Get Out of Bed. Or Not Get Out of Bed. That Is the Question.

This was one of the earliest business lessons I learned. When I was a university kid, I occasionally supplemented my two part-time jobs with odd jobs at $10/h with a local entrepreneur, doing low-level marketing tasks like passing out fliers. One day Mr. Entrepreneur calls up and says, “I’ve got a job for you, but I can only pay $8/h this time.” I told him I wasn’t interested. I could actually hear his smile on the other end of the phone.

“I see–you won’t get out of bed for less than $10/h, huh?”

That was it, in a nutshell. In that moment I understood BATNAs, BHAGs, and diminishing marginal returns in one intuitive leap. And I got a glimpse of what leadership is about.

The bottom line is asking yourself if what you do is REALLY worth getting out of bed for. What’s your time worth?

That’s a big part of leadership, and entrepreneurship is really just leadership taken to the extreme. Entrepreneurship comes from being driven to spend your time on important things.

That’s why time management for entrepreneurs is a little different from many jobniks. It’s not about seeing how many things you can cram into a day. It’s about deciding which things aren’t worth doing at all, and dropping them.

It’s about deciding what’s worth getting out of bed for, and what’s not.

Most entrepreneurs share a belief about fortune: that you make your own luck.

This self-fulfilling prophesy is backed up by science.

1. Keep moving. First, any successful entrepreneur will tell you that it’s all about doing things. And statistics tell us that the more things you try, the more chances you have of being “lucky” - that is, stumbling upon an amazing idea or opportunity. Dr. James Austin talks about how “stirring the pot” by a lot of activity keeps you much more open to certain kinds of luck. For entrepreneurs, a huge component of this is not merely doing things, but being curious enough to try new things and then ask why they do or don’t work.
2. Think lucky. The research of many scientists show that your attitude and behaviour can make you lucky. One great example is Professor Richard Wiseman’s research into the differences between people who see themselves as consistently lucky, and those who think they’re always unlucky. Wiseman discovered that “lucky” people tended to be more open to the kind of possibilities that seem like luck. In one of his experiments, he had people look for photographs in a newspaper where he had hidden a secret message. The people who considered themselves “lucky” tended to find the secret message - which awarded them money - whereas the unlucky people didn’t.
3. Don’t stress. According to Wiseman’s research, “unlucky” people had much higher levels of anxiety. Obviously if everything in your life seems to be unlucky, it stresses you out! But in particular Wiseman found that unlucky people set rigid goals. Maybe Cathy’s so intent on finding a job as a copy writer with a big company that she doesn’t realize the Director of Marketing position with a small firm would be even more perfect for her.
4. Expertise and experience make you lucky. Part of being lucky is knowing what to spot. Joey, who’s been playing video games his entire life, can probably spot a potential winner better than Fred, who thinks video games are for snotty brats. Dr. Austin points to the discovery of penicillin as an example of this combination of experience and expertise.
5. Weird personal quirks help. Having strange tastes can often open you up to seeing possibilities that others wouldn’t. If ever Fred came across a video game that he did like, this could be a sign that the game could appeal to a whole new blue ocean, a demographic that had previously been uninterested in games.
6. Listen to your gut. Not only is your gut often right, but by following your intuition you’ll feel less stressed, and be more open to new possibilities.

There’s a feeling throughout the business world that meetings are a waste of time, yet they’re in no danger of disappearing.  Research suggests that many workers spend at least 5.5 hours per week in meetings, and the number may be more than 17 hours per week for executives.

How do you organize an effective meeting?

The number one complaint is lack of focus.  Lack of focus means lacking a clear agenda and defined goals, but also effectively choosing the attendees.  Often this lack of focus is revealed by an ambiguous meeting style, where brainstorming, status-checking and decision-making are combined.  The end result?  Many meeting attendees feel their time was wasted.

Do You Need to Meet?

Many meetings are called almost out of habit.  So before you even call a meeting, ask yourself two questions:

• Do we really need a meeting?  Or could an email or phone call suffice?
• Who needs to be there?

The Agenda

An agenda listing all items to discuss should always be sent out before a meeting; 2-3 days in advance for small meetings and at least a week in advance for larger ones.  Along with the agenda, any background or reference materials should be included.

The purpose for the agenda is not just to establish the goals of the meeting.  It’s also to give people a chance to think about any decisions they may need to make, and to prepare ideas or necessary materials in advance.

The fewer the items on the agenda, the better.  Most accounts say that more than three items is too many, and one item is best.  Even if there are several items, by sticking to one topic the meeting will still be focused.

Chairperson

Someone needs to lead the discussion.  In some cases it makes sense for the person calling the meeting to also chair it: it can help them stay on track with the topic they’ve chosen, and identify the most important questions.   However, when there is likely to be some disagreement, often the best chairperson is the most outspoken uninterested party: someone who won’t be too involved in the discussion itself, but who is able to get people to shut up and stay on topic.  Roles of the chairperson:

• Keep the meeting focused
• Prevent digressions
• Limit how long any person can talk at one time
• Start and end the meeting on time
• Ensure that quiet people are able to speak
• Accomplish the stated goals of the meeting (eg. make a decision, take an action)

Meeting Styles

Many of the meeting styles that are common in organizations are ineffective.  Status meetings can often be replaced, and just about any regular meeting (eg. weekly status meetings) tends to be a waste of time.  If you really need to get together, you don’t need the excuse of a weekly meeting.  Here are some meeting styles that work:

• Stand-Up or Huddle: It’s a lot like a status meeting, but confined to a short time period of 10 minutes or less, just before people start wanting to sit down.  This is an exception to the rule of “no regular meetings”: you can have Stand-Ups every day and actually see productivity gains.  Since you only have 10 minutes, only members of a team working together should be invited, or occasionally guests who are involved in the team’s activities.  The focus is on what you’re going to do in the next day or so.
• Action Meetings: ONLY for making decisions.  The idea is to present a problem, offer some background information, and make a decision of either YES, NO, or MORE INFO.  If more information is needed, make sure it’s still an action.  That means “think about it” or “do research” isn’t good enough, but “ask the User Interface team if they can add a status update icon” would be an action item.  The hard part about action meetings? Avoiding discussions, lengthy opinions and especially brainstorming.  If more discussion is needed, it should be part of an action.
• Brainstorming: These are hard.  The key to brainstorming is coming up with crazy ideas and avoiding criticism.  Participants should feel comfortable making jokes and suggesting silly ideas, simply because unrealistic and funny suggestions often spark more realistic ideas.  People who can’t help but ridicule or criticize during brainstorming sessions simply shouldn’t be invited back.  Not everyone is great at brainstorming.
• Nitpick sessions: Doesn’t sound like fun, but with the right attitude, these can be both enjoyable and very useful.  This is the chance to call in the incessant critics and get some real feedback.  Once you have a prototype that is soon to be ready, or a long-term plan becoming finalized, call in the nitpickers and find out early what might go wrong.
• Planning sessions: The hard part with a planning session is sticking only to the relevant level of detail.  If you’re planning out the year, choose the date for the yearly training seminars but don’t argue over which speakers to invite - just make a few suggestions.  You can discuss the finer details when you get around planning the actual seminar.
• Emergency meetings: You’re organizing a conference, and Friday afternoon you find out that your speakers for that evening are all going to be very late because of a cancelled flight?  Sometimes when something new comes up, and plans fall apart, you need to have a short meeting to change plans and make new decisions.  The style is similar to a Stand-Up but there’s more emphasis on finding quick solutions to new, urgent problems.
• Cocktails: Sometimes what you need isn’t a formal meeting, it’s just a chance for co-workers to get together in a casual environment and chat.  Whether it’s martinis, beer, lunch or coffee, keeping it “chill” often makes it easier for people to bring up topics and solutions.  Some of the best ideas I’ve seen teams come up with, have come from these get-togethers.  And don’t forget: the food and drink is essential.

The One-and-One Meeting Technique

The most effective way to hold a meeting is to stick to ONE meeting style and ONE issue.  Limit the meeting to a brainstorming on the new marketing campaign, or an action meeting to decide which of the two product designs to use. Keep it to one style and one issue, and you’ll find your meetings are more productive by an order of magnitude.

Schmoozing, the art of making conversation, is a big part of doing business. So why are some people so bad at it? And how can wallflowers become great schmoozers?

There’s no doubt that great conversationalists are usually born with the gift of the gab, but there’s a lot you can learn from great talkers.

Start with a smile. Learning how to look at someone warmly is the most important part of schmoozing. We’re not talking about fake smiles, either. It’s about letting warmth and happiness radiate from you so that people naturally just want to bask in your glow. You can learn to smile warmly at will.

When I had my first serious job interviews, I trained myself to react to pressure by smiling. I’d imagine myself feeling nervous in front of an interviewer and I forced myself to smile broadly and warmly. By the time I got to the interviews, sure enough, it worked. The more nervous I got, the bigger my smile got, and by smiling I relaxed. Many of the interviewers commented on how easy-going and friendly I seemed. If only they knew why!

Schmoozing is about learning who people really are. Ultimately you’re trying to learn about the person behind the face, name and job title. That’s how you build a connection with a person.

So how do you do it? First, don’t let common myths about schmoozing stop you from being a great conversationalist.

THE MYTHS

1. You need a great opening. The only opening you ever need is “hi!” with a big smile. Your attitude says much more to a stranger than the specific words.
2. You have to remember everyone’s name. Some of the best conversationalists I know are lousy at remembering names. It’s good to keep track of people, but more important is the way you treat them. A warm smile and “hey, I can’t believe I’ve forgotten your name!” can be just fine. More important than their name is who they are.
3. I have nothing to say. This might be true. If you’re not a great schmoozer, you probably don’t know what to say. The best idea is to learn more about the people you’re talking with. So prepare a list of things that you should seek to find out, such as:
   • Name - Obviously.
   • Job - What do they do? Do they love or hate their job? What would they rather be doing?
   • Hobbies - Eg. “Harry, I imagine you don’t get a lot of time away from your law practice, but what do you do to relax?”
   • Opinions - What systems or languages does the programmer like? How does the investor feel about technical analysis versus value investing? What does the Yoga instructor think of Pilates or the Alexander Method?
   • Advice - Often people love to give advice related to their area of expertise.
4. Never discuss politics or religion. Simply wrong. You won’t get people talking if you stick to the weather, and you won’t learn who they are until they reveal what they care about.
5. Let them do all the talking. It depends. The key is being truly interested in the people around you and in what they say. One on one, you can often learn a lot by just listening. At the same time, by talking and opening up to the other person, you make them more comfortable opening up to you. And at larger gatherings, the key is to connect with what people are saying. Don’t compete for air time. The best way to enter the conversation is to reference what someone else has said, since by recognizing their contribution to the conversation you make them interested in what you have to say and demonstrate that you’re not just barging in.
6. Don’t prepare, just act naturally. That works for experienced schmoozers whose lifetime of schmoozing serves as preparation, but if schmoozing came naturally you wouldn’t need this list, right? You give yourself an advantage if you prepare for situations in advance. Find out who’s coming to a party or event and Google them or ask around. Going to a gardening conference? Pick up a horticultural magazine. Prepare a list of people you’d like to meet and things you’d like to ask them.

How do I break into a group of people talking?

Sometimes it can work to simply stand or sit down beside the others and start listening. However I’ve found it even more effective to create segues. You’re walking by a group and overhear something. “Hey, did you just say that Windows Vista had a better interface than MacOS X?” “Did you say you’d seen the new Tom Hanks movie? Is it good?” As I’ve said before, more important than the words is the way you say them. If your smile is good enough, you can use just about any segue, even a fake one:

You: “Hey, did you just say you’d installed Linux on your kid’s computer?”

Guy: “Uh, no…”

You: “Oh really? I could have sworn I heard ‘Linux’!”

Guy: “Haha, actually I said I was reading limericks to my daughter before bedtime.”

You: “That’s great that you’re reading to your daughter. They say that reading to your children greatly increases their interest in reading later on. Have you ever read her The Giving Tree?”

Guy: “Yeah, that’s a great one!”

You can try your segue, and see how the group reacts. If you seem to have interrupted a private conversation, just move on and harass someone else at the party. Eventually you’ll find someone desperate enough to talk to you.

Just kidding.

Speaking of which, that’s the other most important thing. Along with your non-fake smile, try to take it easy and laugh a lot. Either people will like talking to you because you’re fun, or at least you’ll be able to laugh at their lack of interest in what you have to say. (Cretins.)