Re:Focus

Are You Willing To Strike Out?

In 1923, Babe Ruth broke the record for most home runs in a season. That same year, he also broke the record for highest batting average.

There is a third record he broke that year that most people don't know about. In 1923, Babe Ruth struck out more times than any other player in Major League Baseball.

Babe Ruth was not afraid to strike out. And it was this fearlessness that contributed to his remarkable career. He was the first player to hit 60 home runs in one season, a record he held for 34 years until Roger Maris hit 61 in 1961.  He also held the lifetime total home run record of 714 for 39 years until Hank Aaron broke it in 1974.

He held other records too. He had 1,33o career strike outs - a record he held for 29 years until it was broken by none other than the great Mickey Mantle.

Most people want to hit home runs, the problem is they are afraid to fail in order to get there. As Babe Ruth proved, you can't have one without the other. It's perfectly fine to be a good, solid player who doesn't go down swinging that often...but it also means you won't hit that many home runs. Those players are needed on a team - they are the consistent and reliable players.

However...

If you want to swing for the fences, you have to be willing to strikeout.

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How To Know If A Company REALLY Cares About Its Customers

On a recent visit to the Southwest Airlines corporate headquarters in Dallas, I saw first hand why their customers love them so much. It's because Southwest loves its employees.

Nearly every single company on the planet will say publicly that they care about their customers, but most only "care" because their customers are the ones with the money. To REALLY care about customers means you care about them as human beings, not as walking cash dispensers.

The best way to see if a company REALLY cares about their customers is to look inside to see if they care about their employees first.

100% of customers are people and 100% of employees are people. A company either cares about people or they don't. It can't care about some and not others. That's like being half pregnant.

There is no such thing as a company that loves its employees that doesn't also love its customers.  And it's impossible for a company to claim it cares about its customers if it doesn't care about its employees first. And "to care," I don't mean to care about them as robots paid to do a job, I mean care about them as human beings.

All the "best companies to work for" are also the best companies to do business with.  Container Store, Zappos and Whole Foods, are just three examples of companies known to care about their people and, as a result, are also loved by their customers. It is that combination that makes these companies and others like them more innovative, able to charge a premium if they want to and more financially successful.  They don't treat their people well because they are leaders, they are leaders because they treat their people well.

The picture above is one of the pictures I took at the Southwest HQ (click to see a bigger version). EVERY hallway there is filled with pictures of their people. It's not the pictures on the wall that make the culture strong. The culture is strong because they go to great lengths to hire people who "belong." They go out of their way to care about their employees as human beings. The pictures on the wall are just one of the things they do to prove how much they love their people.

Southwest is a great place to work and their people get along. As a result, their people REALLY care about the customers and their customers repay them with undying loyalty.

I wish there were more companies who REALLY cared about their employees as much as Southwest, because then we'd all enjoy doing business with more companies and more companies would enjoy doing business with us.

Here are some more pictures - click on them to see the bigger versions.

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Why You Need A Partner

The statistics are overwhelming. Couples live longer than single people. One study reported that the mortality rate for single men aged between 30 and 59 is two and a half times higher than those who are married. Though some of the theories point to quality of life and earning potential, the most compelling reason is deeper than that.

As social animals, we function better and cope with stress more easily when we're in a trusting relationship.  After a hard day, for example, there is someone at home to talk to - to air your thoughts.  Whether running errands, keeping the household going or raising a family, on so many levels, the best marriages are like a partnership. And in business...the best partnerships are like a marriage.

We often spend more time with people at work than we do with our own families, so some of the same dynamics should exist at work as at home. Many entrepreneurs say of their companies, "it's like a family," it's only fitting then that the family should have two parents. We all know the increased stress and pressure that single-parent households face.

Whether a formal relationship or not, the best business partners also have strong emotional bonds. This is the person with whom you can close the door and share doubt and expose your vulnerability.  This is the person with whom you can bounce ideas and figure out the best way to "raise the kids." But more than anything, partners keep each other going.

Being an entrepreneur can be a lonely affair. Unlike working in a company, the person at the top doesn't have peers. Whether a formal equity partnership, a senior employee or a right-hand-man or woman, every entrepreneur needs a partner...a business husband or wife. Every entrepreneur needs someone they trust and who trusts them. And if for no other reason, having a partner you love working with will just help you live longer.

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The Problem With Value

There is a problem with any company that says, "we focus on providing value" or "we are a value driven organization."

What do they mean?

There is no standardized definition of the word "value" in business. It's a relative term.

A company focused on "providing value for our shareholders," for example, may act very differently than a company focused on "providing value for our customers."  What's good for one is not always good for the other.  And when a company talks about "shareholder value" - is that long-term or short-term?  The decisions that drive one are often different than the decisions that drive the other.

And what does it mean to "offer your customers value?"  Does that mean the product will cost a lot but every penny is worth it because of the superior quality? Or does it mean that the product or service is really cheap?

To truly offer value, what you need to provide is information.  Let people know what you mean by value so that they can judge you relative to their wants, needs and desires.

"For people who value the ultimate quality no matter the price, we offer the value you desire."

"Want great value? You won't believe how much stuff you'll get for so little money."

"We focus on offering shareholders value on a quarterly basis."

And my personal favorite (because it's true), "Our company is focused on offering our shareholders the best long-term value because we value our customers even more.  And our customers should feel comfortable that they will always be looked after, because we value our employees the most."

Only use the word value when you clearly explain what you mean.  If you don't, people will quickly learn not to value anything you say.

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Why Does Your Company Exist?

 Dan Hesse, the CEO of Sprint, is back making commercials for his company.  In the latest version, he is doing more of what he did in previous ads - selling on price.  The top guy in the company, the big boss, numero uno, looks straight into the camera and tells you Sprint's latest calling plan is better than the competition's. That's what the most senior person in the company wants us to know about his company - they're cheap.

On the opposite side of the spectrum is Phil Knight, the charismatic founder and former CEO of Nike. Knight was the keynote speaker at a conference and, like the CEO of Sprint, he too made a case for why you should choose Nike over the competition.  But Knight took a different approach.  He didn’t say what Nike does or how they are better.  And he certainly didn't attempt to differentiate the company based on price.  Instead, he told a story that explains Why Nike exists.

Looking across the audience, Knight asked those who run to stand up.  And a good percentage of the room stood up.  Then he asked those who run three or more times a week to keep standing; everyone else was asked to sit down.

Looking out at the people left standing, Knight said, "we are for you."

"When you get up at 5 o’clock in the morning to go for a run," he went on, "even if it’s cold and wet out, you go. And when you get to mile 4, we’re the one standing under the lamp post, out there in the cold and wet with you, cheering you on.  We’re the inner athlete.  We’re the inner champion.”

Without a single mention of their latest technologies or which athletes wear their products, Knight makes a vastly more compelling case for Why we want Nike in our lives. Nike may or may not be better, but we are drawn to them because they have a cause.  They know and we know Why the do what they do.  The same can not be said for Sprint and so many other companies.

Phil Knight knows Why Nike exists and he tells us.  It is the same purpose, cause or belief that inspires his employees as well as his customers.  “Just Do It” is more than a tag line, it’s a motto.  It’s a cheer.  It’s a rallying cry. Are Sprint employees inspired to be cheap?

The mistake Mr. Hesse and so many other marketers make is that they tell us what the company does and how they think they are better, but is not a single mention of Why the company exists in the first place.  And it’s the Why that matters most in a purchase decision.  People are not attracted to what you do, they are drawn to Why you do it.  And Why is what truly differentiates one company from another.

Nike doesn’t want to make products for everyone, they want to make products for champions.  Champions are not the ones who always win races, champions are the ones who get out there and try. And try harder the next time. And even harder the next time. Champion is a state of mind. They are devoted.  They compete to best themselves as much if not more than they compete to best others.  Champions are not just athletes.  Champions are entrepreneurs, politicians, nurses, soldiers, students and Hall of Famers.  Nike wants to make products for all champions. 

What Phil Knight can do that so many other CEOs can't is put his company’s Why into words. And because he can, so can all those who work at the company.  And because everyone in his company can put the Why into words, so can we.  Sprint and Nike are both companies built on brand equity in industries in which there is little to no real difference between one company's products and another's. But we all know what Nike stands for. We only know what Sprint does and we may or may not believe they are better or cheaper, but we certainly have no clue Why they exist. 

Before consumers can know your Why, you must know it. If you don’t know Why you do what you do, how will anyone else?

Your Why starts as a feeling.  Call it drive or passion or inspiration or something in your gut, it doesn’t matter.  Only when that feeling is translated into words can it become actionable and scalable.  Only when others can repeat your Why as clearly as you can, can you lead. And when you lead, you never have to sell on price.

Someone should tell Dan Hesse to stop talking about price and start talking about Why.  Come on Mr. Hesse...just do it.

The Space Between The Vines

Tarzan must have been an entrepreneur. Only an entrepreneur would be so willing to swing from vine to vine without ever looking down.

Big companies that are like big trees.  They are strong, stable and will protect you from the elements.  Every now and then someone will fall or be pushed out of tree, but for the most part they are pretty stable. That's the benefit of living in a tree.  The downside is, trees grow slowly and if you never leave the tree for fear of falling, you'll never see all the amazing life and color in the rest of the forest.  

Entrepreneurs don't much care for big trees.  It's not their fault, they can't help themselves.  They can hear life off in the distance and they want to go explore. But the only way to get there is to grab a vine and swing off the tree.

Opportunities, you see, are like vines. They are everywhere, many of them are in plain sight, just hanging there ready for the grabbing. But most people don't grab the opportunities before them. Most people don't see the vines, they see only the space between the vines.  Most people don't see the opportunity to swing, they see only the risk of falling. And even if they do grab one vine, the odds of them swinging to catch another and another and another are slim; all those spaces between the vines could spell disaster.

Entrepreneurs are different. Whereas most people ignore the opportunities because they can see only danger,  entrepreneurs ignore the danger because they can see only opportunities. They don't see the space between the vines, they see only the vines. And when they leap, they do so looking forward at the opportunity they intend to grab and not at the space they must cross to get there.

This fixation on the vines does not mean they are less likely to fall. Quite the opposite. The vast majority will miss many of the vines for which they are are reaching and will fall some distance as a consequence.  Some will even fall a distance so great they may not be able to get up after they hit the ground.  And every time a vine swinger falls, the tree dwellers will point and scoff and use those incidents to justify staying on the tree. And every time a vine swinger falls, the other vine swingers will see that as a sign that when it is their turn to leap, they will need to leap higher and further to ensure they grab what others missed. The vine swingers, remember, don't see the spaces between the vines, they see only the vines. And vines are the only way to leave the tree and explore the forest.  

Vine swinging is reserved for optimists.  Pessimists stay in the trees.  The pessimists cannot ignore the risk of falling.  The optimists cannot ignore the opportunity to find a better tree. Are you ready to jump?

Thank you to Steve Savad for sharing with me his concept of the space between the vines. I love it.

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No One Misses the Things They Like

We don't miss the things we like, we miss the things we love. Pets. Family. That girlfriend or boyfriend that got away. Believe it or not, the same is true for companies.

Love is an emotional bond, and emotional bonds come in all shapes and sizes. We can form an emotional bond with things that remind us of the past. I LOVE the Jungle Book, for example, because it was the first feature length film I saw in the movies.  I remember my mother taking me to see it. It was such an exciting day.

We can form an emotional bond with things that remind us of someone we love. I LOVE the smell of this one kind of factory lubricant because it reminds me of my Grandfather who worked at a factory and always smelled like work.

And we can form emotional bonds with things that reinforce our world view and reflect our own values and beliefs. I LOVE Lady GaGa because she exists to encourage all the misfits in the world to find their own style, their own voice and embrace it.

Like is different. Like is rational. Even if you like something a lot, you don't have an emotional bond with it.  In other words, you won't go out of your way to get it, you won't be loyal to it and you won't miss it if it's taken away

There are some products and brands that many of us would miss if they were taken away.  Harley-Davidson was going out of business until the employees rallied to keep the company going.  I am not sure if the folks at GM are going out of their way to preserve that brand.  Harley was not just liked, it was loved. 

The way to create a company or product that people love is to infuse it with a belief, a point of view.  Something people can relate to.  No one will fall in love with your product because it's the highest quality.  They may like it a lot, but they won't love it.  No one will love your company because your company is the biggest.  Size alone doesn't command loyalty. 

People love Southwest Airlines because their brand, their people, their service and their marketing reflect the belief in the common man.  People love Disney because everything they say and do is about good clean family fun.  Other companies make age-appropriate cartoons for kids, but Disney movies "feel" different. People love Patagonia because their brand, their people, their products and their marketing reflect that genuine outdoor spirit.  It's not faked.  It's real.

Your quality, service, features and price may get people to like you...they may even like you a lot. But if you want people to LOVE your products, brand or company, then what you do has to stand for something. Everything has to reflect the purpose, cause or belief upon which the company was founded in the first place.  And if everything you do brings that founding belief to life, you can enjoy a lifetime of loyalty form the people who work for you and the people who buy your products.  Don't you just love that?

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The Cost of Your Job

On an average Saturday night, a cab driver in New York City will earn about $400-$450.  A day shift on an average Sunday will bring in $200-$250. Why, then, does Rajindar Singh, a cab driver who usually gets the Saturday night shift, volunteer to drive the Sunday shift instead?  

As Mr. Singh explained to me, Saturday nights are awful. The night is long. There are a lot of very drunk passengers. And nearly every shift, he’ll have to exchange words with one of his drunk passengers after he drives them to the location they asked only to find out that, once they arrive, they discover that, thanks to their inebriation, they had told  the cab driver the wrong address and then refuse to pay for the mistake.   

Sundays, Singh reports, are much nicer. “People are going to brunch or going shopping,” he says. They are in a good mood and the driving is more relaxed. He knows the money is not as good, but he prefers it. 

Rajindar Singh proves it again; there is more to a job than money. Intellectually, we all know that, but how many of us take a job simply because it pays better than an alternative job? We spend more time at work than we do at home so it’s important to consider how we feel when we’re at work. If you’re a manager or you own the company, it’s your responsibility to create an environment and manage a culture that people want to come to every day. That may include letting go of people who, even if they are good at their jobs, are like cancer in the culture; they eat away at it until they destroy the motivation and productivity of everyone else in the system.  

If you work for a company, then it’s your responsibility to consider the people with whom you’ll be working as much if not more than just the job you’ll be doing and the money you’ll be making.  Refusing to do so may make you a little extra money in the short term, but it will soon force you to look for another job, live in misery with the job you have or become the cancer that the owner finally decides to cut out.

Rajindar Singh, incidentally, is a very happy guy who enjoys his job and the people he meets...well...on every day except Saturday nights.

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Planning Is Everything. The Plan Is Nothing.

Dwight Eisenhower said, "planning is everything, the plan is nothing." I didn't know what he meant until recently.

Whether you're starting a business or managing your career, when we set out on the journey the plan often look like this:

Our goals are clear and the path is clear.  All that's left to do is to follow the plan - to walk down the path.

But when we actually start the business or set out on our careers, the path actually looks more like this:

In reality, most plans are rendered useless almost as soon as they are put in motion. There is still some value in the original plan, however.  It defines the goal or the outcome we desire.  And that's the most important part of the original plan - that the destination is clear; the reason you're on the journey in the first place.

When you looked at the second picture, did you see only the crowd blocking the path or did you look into the distance to see the buildings - the destination?  Even in this little exercise, looking at the building and wondering how to get there is vastly more inspiring than looking at the crowd and wondering how you'll get through it.

The same is true in our businesses and in our careers. We often lose sight of the destination and can see only the people coming at us in all directions.  We see only obstacles. But simply by looking up, looking ahead, the obstacles seem to become less daunting.   

With your eyes refocused, start planning as you go and start planning ahead. Learn to be flexible. Learn to anticipate; something with which the original plan offers no help.

Should you move to the left or the right of the man in the baseball cap? What about the guy in the sunglasses?  Soon you'll have to pass the guy in the orange jacket. Or perhaps there's a completely different route to take altogether.

As a fun little exercise, try this when you actually walk down the street. Focus ahead at what you'll have to pass and have in your mind a plan of action.  You'll be amazed how much quicker you get to your destination and you'll be astounded how much more fun you'll have getting there.  The crowd will no longer be a sea of obstacles, and the journey will feel like a game.

Then do the same for your business or your career. The plan, you see, is nothing. Planning is everything.

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If You Want A More Stable Job, Start A Business

As so many companies scratch their heads trying to figure out how to attract more loyal customers, most are unable to solve an even bigger problem:  how to attract more loyal employees. 

There is no such thing as a loyal employee anymore.  Unlike the world in which our parents grew up, ours is one in which a corporate job no longer means 30+ years of service and a gold watch at the end.  Loyalty these days is a few good years.

But it cuts both ways.  Companies aren't so loyal to employees either.  We live in a day and age when companies use layoffs to balance the books.  I've been there - I was once laid off after only being with the company for 6 weeks.  It's a scene we've all seen many times over.  Someone goes to work thinking that all was well, then are sent home the same day without a job. No performance issues. No warning. One day you've got a job, the next day you don't. This is what it means to have a "stable job" these days.

The irony is that starting a business, something with over a 90% chance of failure, is actually more stable. Where you can lose your job from one day to the next in the corporate world, if you start a business, you'll know months ahead of time if the end is nigh. It doesn't happen over night. Yes, an entrepreneurial venture is definitely more stable; what's missing is regularity. 

When you have a job (stability aside), you can count on getting a paycheck on a regular basis for the same amount each time.  Regardless of how the company does, you get paid.  Nice and regular. If you decide to start a business, however, you will be giving up that regularity. Some months are flush and some months are lean. Sometimes you know where new business can come from and sometimes you don't. Feast or famine is the name of the game in the short run. 

The reason most people don't start businesses, even though they are more stable, is because of the irregularity. The devil you know is better than the devil you don't. Not knowing, for most people, is debilitating.  We can all deal with good news, we can even deal with bad news. But not knowing is the hardest thing to deal with of all. The best entrepreneurs don't have to be the smartest. They don't need to have the best ideas or  management skills - I know some very smart, inspiring, big idea types with great management skills who work for corporations. Entrepreneurs are simply more comfortable with the unknown.

If you don't know what you're doing and you don't know how to fix every problem; if you don't know what will work and what won't; if you don't know who will help you and who will ignore you; if you don't know if you'll get paid this month and if you don't know what the future holds, start a business; you're perfectly qualified. Everyone else should find a less stable job.

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Forget Human Resources, Listen To The Receptionist

He could practically taste the job. Arthur was interviewing for a company he's admired for a long time.  He really wanted to work there and this was his shot.  The good news is, he is a top contender for the position. He's well qualified. He's got the right experience and the right education. He comes highly recommended and his interviews with the company brass all went very well. So obviously it came as quite a shock to Arthur when he learned he didn't get the job.  Worse, the job went to someone less experienced than he was. And to the company's credit, they made the right decision.

Early in the interview process, Arthur was asked to meet with a junior member of the team, someone who he would out-rank by a few positions if he were to get the job. In the interview, Stacy, the junior staffer, asked a straightforward and reasonable question of Arthur to which he replied, "it's more complicated than you would probably understand, so I don't feel like explaining it all to you."

And that was his downfall. As well qualified as Arthur was, it turned out he wanted the job but he didn't want to be on the team. He's condescending to those beneath him and because of it, it cost him. There is no way that the senior brass would have seen this side of Arthur, if they didn't have him meet Stacy. "No matter how talented he is," she told them, "there is no way I want to work with him. He's not a team player and he's be a bad fit in the company."  The good news is, management listened to Stacy.

Though the names have been changed, this story actually happened. And it raises an invaluable lesson; there is more to an employee than their qualifications. They have to want to be a part of the team and be a good fit on it. If they have to work with people above and below their level, then the people above and below should want to work with them.

No matter the position, no matter the size of the company, no matter the job, the receptionist should be included in the decision making.  When someone walks into an office for a meeting to pitch their services or an interview for a job, they know they are there to impress. But very often, the show doesn't start until the decision maker or the influencers are in the room. That's where the receptionist comes in.

If someone mistreats the receptionist when they enter the office, then how will they treat the receptionist if they get the job?

How you do anything, goes the old Buddhist saying, is how you do everything. And do you really want someone in your company who doesn't see everyone in the company as a valuable member of the team?

Two companies that specialize in helping you really get to know a candidate before you hire them are Salo LLC and Wall Street Services. And if you're looking for a job, they will help you really get to know a company before you apply, also.

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