Entrepreneur: Work on your business not in your business

I have been a member of Entrepreneurs' Organisation (EO) for five years.  There is a regular theme at any large international gathering (see you in EO Cape Town?) about the role of an entrepreneur.  The saying is that "you should work on your business not in your business".

The successful scale entrepreneurs are those that work on their business rather than in their business.  They are like a mechanic working on the engine rather than the carburettor within the engine.  If they become part of the engine the energy gets dedicated to just keeping the motor running rather than improving the motor.

My early professional work experience was in Accenture. I spent 9 years in total, with 4 in the role of project manager. Accenture prides itself on "hands-on" management - where managers take full responsibility and are involved in the details of the work.  A "good" Accenture manager is details oriented, knowledgeable, dedicated and highly responsive to his team, peers, bosses and clients (ie lives on his blackberry/laptop).  This is my model of how to run an organisation.  I have spent the last 6 years as an entrepreneur (applying my Accenture manager model) and have now decided that I need to change my belief system around what role I should be playing as manager/leader of my business.  I feel a need to respond to employee emails. I feel a need to be on top of sales process. I feel that I owe people my time and energy.  I want to break this cycle. I didn't stop being an employee in someone elses organisation to become an employee in my own organisation (on less salary and nobody to thank me in the bi-annual performance interview).

Cameron Herold of Back Pocket COO was asked by Fortune magazine "How do you motivate your employees?"  He said, “I don’t. I refuse to try to motivate people. What I want to do is try to take people who are already motivated and inspire them to do the stuff they know they have to do, and give them the systems and tools to create change. Then be there to support them.”

I like his philosophy. My scarce resource is energy (here is Sid Savara on self motivation) - I can use it up on others or use it up on myself and surround myself with those that bring their own. That is my plan.

Who would you bet on?

Warren Buffett gave a talk to a group of MBA students at the University of Florida in 2007.  The video is at the bottom of this post (on the blog). He starts with an interesting question.

He says [2:30] "Think for a moment that I granted you the right to buy 10% of the future income of any one of your classmates for the rest of his or her lifetime. You can't pick one with a rich father, that doesn't count. You got to pick someone who is going to do it on their own merit.  Which one are you going to pick?"

Imagine 100 of your colleagues, family, friends.  Who would you choose?  Are there two or three faces that come to mind?  Maybe if you are lucky with your friends, 10 or 15 jump into your mind.  But, you have to choose one.

Warren suggests that there are various methods to do the final selection.  Would you use school or university grades?  GMAT?  Most likely not.  These are not great indicators of success in life.

If not grades then what?  How about your best friend?  Set up a pact - "I'll choose you if you choose me".  A good plan?  I don't think so.

So, if grades aren't the criteria; If friendship isn't the criteria; then what should be your criteria for selecting the person to place your bet on?

Warren says that he has 3 criteria:

1. Integrity - coherence between values and words, words and actions; responds well in bad times as well as the easy times.
2. Energy - gets up every day and starts moving.
3. Intelligence - here, Warren clarifies that he is not looking for grand strategic planning type intelligence; not for chess type intelligence - but for a type of course correction intelligence that allows for small course corrections that mean that instead of running headlong into a brick wall, there is enough intelligence to change course and only receive a glancing blow to the shoulder.

 A good basis for selection?  Do you know who you would bet on?  Would it be yourself?  You already own 100% of your own future income...  are you a good bet?  In a future blog I will give three ideas to improve your energy, intelligence and ability to live your values.  Interested?

Public speaking to change minds – lessons from the world of politics

This is a guest post from Rob Marchant, a key member of Tony Blair's campaign team at Labour Party head office between 1998-2002.  Rob is founder of Barcelona Green, a startup aimed at climate change challenges.  He examines some political examples of public speaking from the US and the UK.

Loved or loathed they might be by the public at large, most of the best-known examples of public speaking come from politicians.  They certainly get more practice than most of us – after all, they do it for a living – and a great speech, such as “Ich bin ein Berliner” or “We will fight them on the beaches”, can move even the most cynical of commentators.  Although we can’t all be a Kennedy or a Churchill, we can still learn from such seasoned speechmakers as we look to lead others.

There are many pedestrian reasons why we might give a speech: to thank people, to raise a point or to merely deliver information, like the figures from an annual report.  However, a good political speech changes minds.  You will never turn people’s beliefs on their heads – no speech can do that – but by gently coaxing the listener you can often win the day on a single issue.  Here are some examples from well-known politicians on winning speeches:

Home in on your one “winnable” resistance point.  Every year, Tony Blair’s most important speech as Prime Minister would be to the Labour Party Conference in September.  Blair would spend most of the speech building up rapport and trust with his audience.  And then, once he had them eating out of his hand towards the end of the speech, he would drop in a single but controversial proposition, and they would give him the benefit of the doubt.  They never saw him coming.

Bond with the audience.  Bill Clinton, a true master of empathy, can win the hearts of a potentially hostile audience immediately by a choice phrase, signalling that he is “one of them”.  In his famous 1994 “you need to turn the light on in Virginia” speech, he starts by affectionately name-checking the local party dignitaries.  Then, as he hits the most controversial passage, he starts it with, “I am a Southerner.  I love this part of the country”.  No matter that Virginia is over a thousand miles from his home in Arkansas, and no matter what he says now, the audience are with him.

Passion wins, especially at the end.  When it comes to passion, Martin Luther King’s training as a Southern Baptist minister gave him a head start over most of us – at times his iconic “I have a dream” speech reads like gospel singing.  If you believe it, they’ll believe it.  And who has ever written a better ending to a speech than "Free at last! Free at last! thank God Almighty, we are free at last!"

Strong vocal delivery is important for credibility.  Margaret Thatcher, although perhaps not naturally a gifted orator, made the best of what she had.  She even had special voice training to lower the pitch of her speaking voice – she felt that her higher-pitched, woman’s voice lacked gravitas.  Her political persona as the “Iron Lady” was entirely consistent with her somewhat slow and deliberate speaking style, giving the impression that she was not to be deterred or trifled with.  Perhaps her best was the 1980 conference speech which subtly ridiculed her Cabinet critics for their vacillation and political “U-turns”, while contrasting her own strength of purpose:  “You turn if you want to.  The lady’s not for turning!”  With that, Thatcher’s place as party leader was safe for the next ten years.

Be yourself – although you can and must practice, you can’t be someone you’re not.  People move others most when they speak from the heart.  Humour can be devastating – or devastatingly bad, if you get it wrong.  Prime Minister Harold Wilson was a down-to-earth but rather witty speaker.  However, he didn’t dare introduce humour in his speeches until he was confident enough of his delivery – that is, when he became Prime Minister.

Don’t be heavy-handed or negative about rivals.  Audiences will usually react against this and it cheapens your message.  However, bashing the opposition in an audience is usually a crowd-pleaser, and unites you with the audience around the common enemy.  Learn from the pols: if you’re a Republican, bash the Democrats.  If you’re a businessperson, bash the competition.

Coin a phrase and catch the moment – Speeches have often assured their own place in history, in part, by exactly reflecting the zeitgeist: see Macmillan’s “wind of change” speech, about the end of empire in Africa, or Reagan’s “tear down this wall” about the anticipated end of the Cold War.  Even better, use a mantra which will be repeated: Barack Obama’s stroke of genius with “Yes, we can” made him and his message instantly memorable.

Not all speeches are political in nature but most, to some extent, look to influence opinion.  We might never have the charisma of the political heavyweights: but we can all be warm and confident, and take people with us.

Rob Marchant runs a consultancy business in marketing, web communications and management, and is currently raising funds for his first startup, Barcelona Green.  His career spans management consultancy, investment banking and technology, as well as having been a key member of Tony Blair's campaign team at UK Labour Party headquarters during 1998-2002.  In 2000 he travelled to Washington to meet the campaign teams of Al Gore and the Democratic National Committee.  He is also an experienced public speaker and facilitator who has stood for the Parliament in the UK.   Originally educated at Oxford, he has an MSc in Economics from the University of London and gained his Global Executive MBA from IESE in 2004.

Twenty minutes with Doctor Alastrue. The most important thing.

Yesterday, I spent 20 minutes speaking to Dr. Alastrue, a general surgeon in the Teknon medical clinic.  I need to have an operation - due to too much exercise (did I mention the triathlon in June).

I am currently interested in the challenges of experts communicating well to non-experts.  In the case of me speaking with Dr Alastrue with his 30 years experience as a practicing medical professional, it was a true case of an expert (him) communicating to a non-expert (me).

He sat me down and asked some basic questions. He asked me to explain why I had come to see him.  He explained that he would do some tests.  He explained why.  He explained what he found.  He explained what it meant.  He used his hands to demonstrate a simple model of what is happening.  He looked at me while he spoke and listened to me when I spoke.

I asked him what makes a great surgeon.  He told me "25% great technique, 25% great problem solving skills and 50% being a human being."  The great surgeons are able to empathise with the fellow human beings that are their patients and the family and friends of their patients.

I believe that a huge challenge of experts communicating to non-experts is that what is interesting to the expert is way over the head of the non-expert; what is interesting and relevant to the non-expert is painfully obvious and boring to the expert.  However, there is nothing more important that seeking to be a human being over and above seeking to be a "doctor" or "expert" or "leader" or "professor".

The most important thing is to be a human being.  JK Rowling knows this.  Steve Jobs knows this.  Dr Alastrue knows this.

Seven Speaking Suggestions from Reagan's Speechwriter

I have just read "On Speaking Well" by Peggy Noonan, speechwriter to Ronald Reagan.  She sums up persuasive speaking with seven suggestions (some good additions to my 12 tips for Public Speaking):

1. Be not afraid.  Relax, it’s only a speech.
2. Think logically about the case you are making, and make it.  Try to imagine your speech being reduced to a headline.
3. Your style shouldn’t be taller than you are. Don’t imitate. Say it the way you would say it to a friend.
4. The most moving thing in a speech is always the logic. Never try to make them cry, try to help them think.
5. Use humour when you can. No one ever left a speech saying “I hated the way she made me laugh out loud”.
6. Give your speech before you give it.  Read a draft or two aloud to friends or family. The fifth time you give your speech will be better than the first time.
7. Use your own gestures, respect your own quirks.  Be you.  (Check out my previous blog post on 3 keys to powerful delivery)

“When you forget yourself and your fear, when you get beyond self-consciousness because your mind is thinking about what you are trying to communicate, you become a better communicator” Peggy Noonan.

How to turn around a company

A couple of years ago I had some discussions with Solera Capital about taking on a role in Europe leading the change at a company called Audatex, an insurance claims adjustment business.

Solera explained their simple, three part philosophy that they apply to managment of their acquired companies:

• 30/30
• 80/20
• 90/10

30/30 - Every manager who controls resources is asked to come up with a workable plan to achieve 30% greater output using 30% less inputs.

80/20 - Every person in the acquired organisation is asked to drop 80% of their projects, to-dos, reports and focus on the 20% that they personally decide are the most important and valuable activities.  Solera are brutal in this process - if somebody has 20 projects, they must stop 16 and focus on 4.  They are not allowed to choose 5.

90/10 - If anybody does not achieve their objectives, they receive 10% of the "blame".  90% goes to their boss.  The only reasons why somebody will not meet their objectives are that they a) don't understand their objectives, b) don't have the resources necesary to achieve their objectives or c) are not motivated to meet their objectives.  a) is bosses' fault. b) is bosses' fault.  c) is a personal fault, but the boss should have intervened and replaced the individual with somebody with the right motivation to take advantage of the opportunity.

Clear, brutal, and requires tough decisions; but highly effective looking at Solera's track record.

On goal setting. How I do it. (Do not try this at home)

I was on the Air Europa flight back from Madrid sat with JC Duarte and Manuel Vidal-Quadras.  At a certain point we watched as JC pulled up an impressive iPhone application that allows him to track his time.  This led to a discussion about how to be effective with time.  I feel that I am not effective with my time and can easily waste hours on the unimportant (facebook, searching for information on Wikipedia and reading 10 other interesting but not directly relevant web pages).  I do however, tend to be good at achieving my goals. I know I could be a lot more effective, but keep myself to aim to achieve 3 important things each day.

I took some time to think about how I manage myself to achieve goals. I am interested in others' strategys and tactics to effectively achieve the important things in their lives.

1. Daydream & Visualise Benefits: I imagine myself in the future having accomplished the goal. I try to write a few words about this image. My top priority goal this year is write a book. I can see it available in all those airport bookshops that I pass on my travels.  I am too good at this bit and can sometimes end up living in a future, better world rather than being truly present in the here and now.
2. Be Realistic: This is where I need to work harder. I find it easy to imagine the benefits and to be optimistic about achieving them, but hard to be realistic about the obstacles that stand in the way; and getting down to systematically overcome these obstacles.  I write two significant obstacles that will make it difficult to achieve the goal. Writing a book is a lonely process - I decided that I need to write 1000 words every day - and publish a blog post about once a week.
3. Brainstorm: How can I overcome these obstacles?  The benefits can only come about if I am serious about overcoming the obstacles.  Is there a way to minimise the obstacles? How would someone else overcome these obstacles?  If I can't see how to overcome the obstacles I think it is better that I admit that I am not going to achieve the goal.  I am not good at this.  I want to believe I can be great at everything.
4. Action plan: 9 years of Accenture means I can do this in my sleep. Break the goal down into actions - list the actions.  Establish rewards for achieving significant progress points along the list of actions. Set dates. Write it down.  I like the feeling of crossing out actions as I complete them (like this).  No online tool has ever given me the same satisfaction as a big blue line drawn through the text on the page.  I have hired a coach to help me with the book. We have worked on a list of chapters - completing chapters is easier than completing the whole book in one go.
5. Start: Just a few minutes right now.
6. Public Commitment: I tell people that I will accomplish a goal.  I just told you that I will write a book.  I also want to give a speach to an audience of 5000 people one day.  I want to take my daughter to Disneyland (haven't decided Paris or Florida).  I tell different people for different goals.  I have some sports/fitness friends and they know that I will run a sprint triathlon this year. It would be better if I was able to let them know about the obstacles and how they could help (sometimes with a simple "come on man"; the swim is the big challenge for me in the triathlon).  I attach a date to when I mean to achieve the goal.  June 6 is the sprint triathlon. August is the book. I need to decide what is the best age for my daughter's first Disney experience...

My current list of life goals is on the right panel of this blog.