Discipline makes Daring possible.

Exit

Exit

Investors and business angels have a clear exit strategy – grow fast for 3-5 years, sell up and crystallise the gains. Happily, this strategy often coincides with that of the entrepreneur, who wants to get this business idea going, and then move on to the next.

Most small business owners don’t have an exit strategy, or certainly don’t start with one.

Thinking about exit often only happens when some event reminds us of our mortality. If that doesn’t happen, the business simply winds down to nothing alongside its owner.

Partly this is due to our natural tendency to think short-term; partly because we simply can’t imagine ourselves without our business, and partly because we don’t believe our business could survive without us.

Perhaps then, rather than focus on our own exit, we could focus instead on the future life of our business as we would focus on the future life of our child – with the aim of making it independent?

If a business was a child, we would nurture it through the early years, then start giving it more responsibility and autonomy, so that when the time is right, the child leaves us, ready, willing and able to make its own dent in the universe.

This doesn’t mean you exit your business with nothing, it just changes who you might sell it to.

Who better than the people who helped you raise it?

Perspective

Perspective

I’ve been having a problem with “employee engagement” for a while now. It’s a similar problem to the one I have with “customer experience”.

I’ve been thinking about why this is is, and I’ve realised that its because both these phrases speak from the same perspective. They’re really about ‘me the employer’ or ‘me the seller’. Actually, they are most often used by corporates, so are often really about ‘me the shareholder’.

As a result they feel (to me at least), manipulative, even extractive. They are about what I can get from you the employee, or you the customer.

Employees don’t want to be ‘engaged’, they want the same things you do:

Agency – to make their own ‘me-shaped’ dent in the universe.

Mastery – to learn and master new skills.

Autonomy – to be free to choose how we make their dent.

Purpose – to do this for something bigger than themselves, that has meaning beyond the sale.

Community – to do all this with ‘people like us’.

And the only experience the customer wants is one that gives them at least some of the same things you want:

Agency – to make their own ‘me-shaped’ dent in the universe.

Mastery – to learn and master new skills.

Autonomy – to be free to choose how we make their dent.

Purpose – to do this for something bigger than themselves, that has meaning beyond the sale.

Community – to do all this with ‘people like us’.

Perhaps if more businesses thought from this perspective, and tried to give their employees and customers what they really want, we’d have a happier, more productive world.

Beyond Automation

Beyond Automation

It’s hard to imagine a more old-fashioned business than shipping goods around the world under sail, yet that’s exactly what’s beginning to flourish right now, thanks to 21st century technology.

The internet, and some clever (open source) platform software connects a global community of producers, consumers and small ports with merchants like New Dawn Traders, enabling sailing ship enthusiasts to voyage ‘for real’, carrying profitable cargo as well as people who’ve bought into the experience; bringing the theatre of a ship coming in to small ports – turning ‘online shopping’ into a community event.

What’s more, these cargos may travel under sail, but the ships use the latest navigational and forecasting technology to stay on course, and avoid being taken by surprise by the weather.

What’s fascinating is what doesn’t get automated. Hauling ropes, for example is done old-school, by hand, by the crew.

“You can get motorised winches, that would do all this at the touch of a button,” Alex Geldenhuys of New Dawn Traders tells me, “but doing it by hand and voice is great exercise, fantastic team-building and very good for morale. Why would you want to get rid of that?”

For this group of people, automation isn’t the end game, it’s the means to a completely new game, that creates space for the very best of what it means to be human – curiosity, connection, community, and care for the planet.

That’s a future I’d like to see more of.

Dismantling the E-myth

Dismantling the E-myth

In his E-myth books, Michael Gerber identifies three key roles in a business: the entrepreneur, who drives the vision for the business; the technician, who does the work, and the manager who acts as a bridge between them, planning and organising the work of technicians to achieve the entrepreneur’s vision.

If the vision is shared by everyone, do you then need managers?

I don’t think so, but you do still need management – a way for the technicians to know what they have to do, and how well they are achieving the vision, so they can work out for themselves how best to move forwards.

This is great news for small business owners, because I’ve only ever met one person who wanted to be a manager.

If the vision is explicit and shared, and technicians manage themselves, do you then need an entrepreneur?

No, but you do need entrepreneurship – a way for technicians to see new ways to deliver the vision profitably.

So, if you can push both management and entrepreneurship down to the people who actually do the work, what happens to the entrepreneurs who founded it?

Their baby will have grown up, to be independent, autonomous with their original vision still in its DNA.

They get to choose what they do next.

Virtual Reality

Virtual Reality

The right metaphor can get to the heart of your promise faster than a speeding bullet, creating an instant bond between you and the people you want to serve.

Metaphors work because they are simple, direct and emotional.

A good metaphor paints a picture worth a thousand words: “Longcroft Luxury Cat Hotel”.

The best metaphors conjure up an ongoing relationship: “Let us be Houston to your space mission”, “Welcome to our loving family”.

A metaphor that truly captures your promise acts as a compass for everyone involved in the business – your team, your collaborators, your suppliers and your clients. Whatever the situation, people will always know the right way to go.

But you can take it even further, by using your metaphor to actively design the way your business works, creating your own virtual world, where people take on different roles to play out what that metaphor means for your clients. If you get the metaphor right, it won’t even feel like work.

And that means you can make your business autonomous.

If everyone knows their part, has access to all the right props, and has a compass for when things go astray, they don’t need you to watch over them do they?

Go Blunt

Go Blunt

Once upon a time, a long time ago, I had clothes to wash. I was in Brussels, and the place I was staying had no washing machine, so I headed off for the nearest launderette.

What’s stuck in my mind all these years later is the instructions on the washing machine. On one side of the door they were in French, on the other, Flemish.

The French instructions took up 4 times the space, and talked about “making coins to be introduced into” the machine.

The Flemish on the other hand was blunt – “stick your penny in the slot”.

The point of this story? If you are struggling to explain what your promise is, try blunt.

Leverage

Leverage

“Give me a lever long enough and a place to stand, and I will move the Earth”.

We tend to focus on the lever, but the ‘place to stand’ is just as important.

Without sure footing, the lever can’t get purchase.

When you know the essentials are being done consistently, you can experiment at the edges to make things better.

Discipline makes daring possible.

Constraints

Constraints

No composer would present his orchestra with a blank scoresheet and expect them to play – not even John Cage.*

Creativity requires constraints. The blank sheet of paper numbs imagination.

  • “Thinking outside the box”
  • “Pushing the envelope”
  • “Pushing boundaries”
  • “Bending/stretching/breaking/re-writing the rules”

If you want the creativity, you have to create constraints people can work from.

Discipline makes daring possible.

*Cage’s box was for the audience, not the orchestra.

Exclusivity

Exclusivity

Not everyone wants what you could do for them.

Not everyone who wants what you could do for them, wants the way you do it.

Not everyone who is willing to work for or with you wants to do things ‘the way we do them round here’.

Not everyone who could buy into your franchise wants to follow your system.

But for the ones who do, you are the answer to their prayers, and they’ll tell their friends.

They are why you do what you do, the way you do it.

Find them. Help them find you.

Overhead

Overhead

When you add a manager to a business, you add overhead. So the first effect of hiring someone to replace yourself as manager or supervisor – so you can work on your business instead of in it – is to take a real hit in profitability.

What if, instead of appointing someone new to manage your people, you appointed them to manage themselves? You could use the saving in overhead to invest in them instead, building a supporting framework, coaching, mentoring, training, and of course a fair share of the rewards.

When you want to expand to serve more customers or clients, you can simply add more people.

Those who’ve taken this approach have found the return on this kind of investment to be well worth it.