Entrepreneurial Leadership

Would the sole reason you would be starting your own business be that you would want to make a lot of money?  Do you think that if you had your own business that you would have more time with your family?  Or maybe that you would not have to answer to anyone else?  If so, you had better think again.

On the other hand, if you start your business for these reasons, you'll have a better chance at entrepreneurial success:

An entrepreneur must have a passion for what he is doing. The important thing to remember is that he will hit lows during the process that will make him question his decision. Belief in the idea is important though, and your passion will keep you going.

You should be able to build a competitive edge in the business. It could be in technological processes, marketing relationships or solutions you offer customers.

Entrepreneurs work hard and are extremely goal oriented. Along with hard work, comes the ability to work unsupervised. It is a critical requirement of entrepreneurship. As a paid professional, often someone can blame the system for not providing either the direction or the resources. As an entrepreneur, you no longer have that latitude. You have to work hard, very hard.

Entrepreneurs are flexible, opportunistic and recognize the power of 'emergence'.

I love this story about IBM and its founder Thomas Watson, Sr. It was 1934 or '35. IBM had built the first accounting machines for banks but in the Depression years, no bank was buying anything. IBM was on the brink of bankruptcy. Watson's wife forced him to accompany her to a social event where he was seated next to a middle-aged lady.

While talking with her, Watson described to her the machine IBM had built. It turned out that the lady was in-charge of the library system in New York City. She told Watson that they were in complete disarray, unable to manage their books, and told him that she would need half a dozen of these! Next day, he sold her five of the machines.

Until that moment, Watson had never thought of his computing devices as machines for tracking books. That one sale pulled IBM from the brink of bankruptcy.

Had it not been for Watson's capability to go with the emergent flow of events - moving from accounting machines to the recognition that he could make general purpose computers - IBM would not be what it is today? We all know that the essence of entrepreneurial ability is about building a future and living in it. Sometimes, it is about 'willing' a course for the enterprise. Yet, things do not always go the way you plan. Destiny tests you all the time, plays pranks and shows tiny openings in a moss-covered brick wall behind which often a whole new world awaits.

When it comes to the success of any new business, you - the entrepreneur - are ultimately the "secret" to your success. For many successful business owners, failure was never an option. Armed with drive, determination, and a positive mindset, these individuals view any setback as only an opportunity to learn and grow. Most millionaires possess average intelligence. What sets them apart is their openness to new knowledge and their willingness to learn whatever it takes to succeed.

So why do businesses fail?

·        Failure to anticipate market trends. Lack of market research when entering new markets, resulting in poor sales and return on investment.

·        Overspending. Or spending too much on frivolous luxuries instead of products and services that improve the bottom line.

·        Poor cash flow control: paying creditors too early, buying too much stock or giving customers payment terms that are too long, late payments and bad debts. These can all lead to a lack of working capital and cash flow problems.

·        Failure to listen to customers. Listen to your customers and adapt accordingly.

·        Lack of innovation. Some businesses never change, but they lose their market share when a new company comes along with a new way of doing things

·        Loss of financial support/investment. If an investor pulls out, you may find it hard to attract another one in time.

·        Reluctance to seek professional services. 

3 Ways Power Changes People

How much does power go to your head? If it didn’t, then you’re the exception and you’re magnanimous and generous of spirit.

According to numerous studies, people put into power positions are prone to a couple of behavior changes:

1.    Power makes most people become more focused on their own needs and wants

2.    Power changes people to become less focused on what others need, want and do

3.    Power influences people to act as if rules others are expected to follow don’t apply to them

Consider this scenario. Three people are working together. A plate of five cookies is made available on the break. Social norms dictate that no one takes the last (fifth) cookie, but what about the fourth?

In an experiment for the research study, groups of individuals were placed into teams of three, to evaluate the output (the “boss”). During the break, the experimenter arrived with a plate of five cookies. This allowed each participant to take one cookie, and at least one participant to comfortably take a second cookie, thus leaving one cookie on the plate. No one was expected to take the fifth cookie and no one did. But what about the fourth, the one that could be taken without awkwardness, or negotiation?

The results of the study showed that the “boss” (the evaluator) was clearly more likely to take a second cookie.  (Videotapes of the interactions also showed them more likely to eat with their mouths open and scattering crumbs widely.)

The conclusion is that individuals in power are more “disinhibited” and prone to focus on their own needs to the exclusion of others.

This is just one study showing bad boss behaviors and how “power corrupts.” There are many others. Maybe you can think of a few examples in your experience when the boss ate the fourth cookie with his/her mouth open?

Leave a comment.

If you’re wondering if you’ve fallen into these power traps, you might benefit from some outside coaching. Give me a call.

Are you out of control with the daily drama of the Dow (DJI)?

Often fear originates in our mind because, as much as we try, we have little control over the future. And, the future is where we tend to look for our security, seeking the assurance that everything will be all right. The illusion is that we have control over many variables in our daily life and that seems to make us feel better, at least temporarily. However, we really have no control over anything, other than our next breath and our next thought.

I know of very few people who are not being severely affected by the economic roller coaster roaring through Wall Street and into our daily lives-it is, without doubt, a very frightening ride; the fear of loss and being out of control is palpable. Since the financial meltdown of 2008 I have been observing how the ups and downs of the stock market affect people’s sense of well-being. In some regards the Dow Jones Index (here in after, I’ll just call it Dow) is similar to a barometer that reports the amount of fear pulsating through the collective consciousness. In the financial industry they actually make a practice of measuring these pulsations using a gauge called the VIX (Volatility Index). It is often referred to as the fear index or the fear gauge because it represents one measure of the market's expectation of stock market volatility over the next 30 days. Talk about forecasting our future based on the energy of fear and expectation of loss. The result is, for many, the Dow is like a “reverse” biofeedback device that, rather than detecting how we are feeling, tells us how we should be feeling each day; when the Dow is up it gives us cause to feel good - when the Dow is down it gives us cause to feel a bit down as well. Metaphorically speaking this is like the tail wagging the dog. No wonder we feel so out of control.

If the drama of the Dow has got you feeling down... and up... and down, it is safe to say you are not alone. What is happening on the Wall Street (and in Washington DC, as well as around the world) stirs up our fears because it brings us to the very edge of not knowing what the future holds reminding us that we are not nearly as much in control of our lives we think we are. What I do know is this: While we may not have control over the dramatic events unfolding before our eyes, we have absolute control of what is going on behind our eyes. In other words, we can choose to either respond or react to the mystery of the moment and that choice will determine how we experience the roller coaster ride. The primary reason the drama of the Dow is so volatile is that the system is hardwired to operate reactively, triggered by the fear and the perception of loss rather than faith and expectation of increase. How do you perceive life in this moment? Self-inquiry is a sound spiritual practice you might want to employ as you take a look at how you approach life today. Are you mindlessly and fearfully reacting to or mindfully and faithfully responding to what you see and hear on the six-o’clock news? It’s never too late to change how you perceive what is. (You may want to read a couple of postings I made recently on my Facebook page – on 1. Perceptions – URL: https://www.facebook.com/photo.php?fbid=254789771212592&set=a.158130517545185.36519.100000447132850&type=1&theater  and 2. Mindfullness - URL: https://www.facebook.com/notes/drsurya-m-ganduri/mindfulness/197322030327608.)

The primary difference between mindfully responding as opposed to mindlessly reacting is that by responding we create an intentional gap (or space) in time and mind where we can breathe and pull ourselves out of the future and anchor ourselves in the present moment long enough to become the detached observer of our own thoughts and feelings before we say or do anything. The “response gap” is a sacred space whereby hitting the emotional “pause button” we consciously create an opening for the presence of the Divine to be revealed within us. Will seeing the drama of the Dow through the eyes of Infinite Intelligence give us more control over the uncertainties of the stock market? Not necessarily, but it will absolutely give us control over our own thinking process in the present moment which is our only true point of power. When we are present in the moment we are led to make clear minded choices which can include the mindfulness practice of knowing what and when to let go of that which causes us to suffer.

Reconciling what we have control over and what we don’t have control over is the first step to making peace with what is. There always has been and shall continue to be the metaphoric roller coaster rides in life, be it the stock market, the weather, or any of the other millions of variables over which we really have no control. Perhaps there is greater wisdom than we know in the ancient saying, “This too shall pass.” It’s true - anything that has a beginning must also have an end, including the current cycle of economic uncertainty. That awareness may take a bit of the power away from those who worship the god of the VIX.

If the drama of the Dow has you feeling down and a bit out of control, gently guide yourself back to the remembrance of the Divine Essence from which you came, which  is also the ultimate source of all that is. You are one with the source of your good so focus on what you do have control over - your next breath and your next thought. May it be one that brings you peace in this moment... after all, it’s really all there is, so why not breathe and enjoy the ride.

Paralysis by Action

We've all heard it or seen it. The analyzer that needs to run just one more test, develop one more contingency plan before doing anything.  They get so mired in the details that they hesitate to take action.

What about Paralysis through Action? Seems impossible, right? If I'm doing, how can I be paralyzed?

I was talking to an entrepreneur about his decision-making style and it was clear that he was highly practical. The highly extrinsic, or practical, is always concerned with doing. They might just ship a bunch of material to a jobsite and begin working on a house without even a set of blueprints. This entrepreneur owns four businesses - one of them in India - and is constantly involved in his teams' projects and tasks. He's doing a lot, so he should be highly successful. But is he?

Yes, he makes money. Yes, he has four businesses that are productive. Through our discussion, he realized that while he knew he was moving fast down the highway, he really didn't have a clear picture of where he wanted to go. He likened it to going to Rockford from Chicago and taking side trips to Schaumburg, Naperville, De Kalb, etc. He might NEVER get to Rockford!

This is what I mean by "Paralysis by Action."

What do you think? Do you think it can really happen? Any examples?  I'd love to hear them.

Is Analysis Paralysis Stopping You From Taking Action?

Analysis Paralysis is where you can’t make any forward progress because you bog yourself down in details, tweaking, brainstorming, research, and… anything but just getting on with it. Sound familiar?

It’s something I struggled with. Partly out of fear of failure, partly because I love the idea-generation phase of projects, mostly because I am an analysis geek on occasion.

There is hope though, even for chronic cases.

It’s not actually about setting your sights low, or dropping your personal standards. What you have to do is identify those things you have to get right from the get-go, those items that do need analysis, and what can be fixed later.

While it is perfectly natural to want to spend time thinking about a project, especially one with an element of risk, there comes a point where any more thinking is counter-productive and you need to start making some progress.

1.     What do you absolutely have to do for the project to be a success?

2.     What tasks can absolutely not be put off while later?

3.     What are the most painful items to change post launch?

4.     What could realistically go wrong?

With procrastination it always comes down to just doing it but discovering the reasons why you aren’t (other than being a lazy geek making excuses!) can be very helpful in getting your sorry behind working. Analysis Paralysis often comes from learned behavior over several years. Either it has proven beneficial, so you do a little more thinking and planning each time, or not enough planning has caused problems so each occasion you get a little more cautious.

It never fails to surprise me how different the world seems when my analysis faces reality. We all get some things right while other things seem to come from outer-space and no amount of thinking would have predicted it. Thinking on your feet is often as important as any amount of analysis.

7 Tips to Help Overcome Analysis Paralysis

1.     Plan

You still need a plan no matter what, but this time round, over planning is not allowed. Think of what are the things that you need to know before you start and get a grasp of it. Brain storm for what would be the most painful thing to change and get more information and make a wiser decision. Be sure to know, what are the things that could possibly go wrong and try to prevent them. Be proactive rather than reactive.

2.     Set a Deadline for Your Planning Session

Allocate a deadline for your planning session and be strict with yourself and only spend that certain amount of time for planning. When we have a specific time slot for planning, we will have a lesser tendency to over plan.

3.     Just Start

When you finished your planning session, stop asking yourself “what if” questions. Just start doing it and learn everything that you do not know along the way.

4.     Forgo Perfection

I know there is a Mr (or Ms) Perfection inside you and you want to get everything perfect on the get go but it is highly not possible that everything will turn out the way you want to be in the first place. Just forget about perfection and start taking action.

5.     Momentum

Once you start your project, do not stop and think too much again. Just have a list of to-do items, regardless whether it is big or small and keep on completing the task.

6.     Learn To Make Decision

This is an important skill that can help to overcome analysis paralysis. By knowing how to make a faster and wiser decision, we can take action faster and get more things done. Practice your decision making skills by setting a 5 seconds rule to make your daily decision. (Ex: What beverage am I going to have? Coke or lemon tea.)

7.     Find an Action Taker

Find someone who is able to take action easily. Whenever you are stuck with analysis paralysis, find them and talk to them about your problem. Most likely you will get a positive reply and get the momentum you need to get going.

 

Parting Words

These tips worked fine for me in helping me to take action and also to achieve results. Analysis without action does not help you to have any kind of positive results. Now, you have the tips to help you overcome analysis paralysis, why don’t you go start something that will help to enhance your life today?

Finally, Stop thinking about it and start doing something.

Is Passion Critical to Your Success

Passion is one of those potentially arbitrary words that are difficult to define. Passion, as defined by the dictionary, is “a strong liking or desire for or devotion to some activity, object, or concept.”

Having passion for your business is critical to your success. Why? Without passion and enjoyment for your business you won’t be motivated to make it the best company it can be. Sadly your customers will get very bored of you and what you have to offer.

Without passion and joy for the work that you do, it’ll show in your company’s personality and have a direct effect on your branding. Yes, passion for your business is that important.

So the question is do you have passion for your business? Do you get up most mornings looking forward to your day? If the answer is no, if you’re finding that you’re lacking passion and joy for your business consider a few options.

If there is no passion, you need to make changes…

1. Eliminate the Tasks That Drive You Mad

Make a list of the current work related activities you do enjoy and find pleasure in. Now make a list of the work related tasks you don’t enjoy. The tasks you really despise and procrastinate on and simply don’t do. Looking at your two lists. What can you do to make list number one, the list of activities you do enjoy, more a part of your day? In many cases the answer is simply to outsource the tasks that you dislike.

2. Refresh Your Memory

Think back to why you started your business in the first place. What were your motivations? What were your goals? What was your passion? Write them down and take a look at all that you’ve achieved. If you’re far from your goals, if you’ve yet to achieve them, what can you do to get back on track? Often times, goals can serve to re-motivate and re-excite your passion.

3. Gratitude Helps

Think about all that you have to be grateful for. Make a list. In fact, many business and success coaches recommend creating a gratitude journal and writing in it every day. Remembering all that is good and right in your life can really reinvigorate your passion for your business and your life.

4. Work with Passionate and Motivated People

Being the owner of a small business can be a lonely job. Surround yourself with passionate and motivated people and you’ll not only find it’s contagious, you’ll find that your business success will improve as a direct result.

Mastermind groups, business coaching, networking with enthusiastic and like minded professionals, and even outsourcing with people who are passionate about their business are all excellent ways to become part of a winning team.

5. Integrate

Integrate your current passions into your business. If you’ve found that your passion for your business has simply waned, consider what you do enjoy and brainstorm how you can integrate your current passion into your business.

Passion breeds profits, if your passion is lacking or altogether missing, spend some time finding it. It’s important not only for the success of your business but the happiness of your life.

How else are you managing your passion? I'd like to hear your ideas and other points of view.

Life – Dinner Principle

The “Life-Dinner” principle is valid not only in the relationship between a parasite and its host, but also in a great many other inter-species and intra-species interactions. This principle was originally identified (and named) in systems of the predator and prey type. Put simply, rabbits run faster than foxes for the simple reason that they are running for their lives, while the fox is only concerned about its supper. But the rabbits always stay a little faster than the foxes; because a fox can afford to go without dinner sometimes, but a rabbit can never afford to BE dinner. So the foxes always push the rabbits to go faster. You decide which is the more potent motivator.

But, this isn’t an article about motivations, but rather a very simple principle with far reaching consequences: Priorities matter. Things survive for a reason. Existence implies viability.

Therefore we should always be on guard when given easy answers to hard questions and simple metrics to explain complex businesses.  Life is much more complicated than dinner.

Rabbits, Foxes and Cuckoo Birds

Let’s draw some analogy between the culture and business by thinking deeply about things like rabbits, foxes and cuckoo birds.

Rabbits that are born slow are more likely to get eaten, enlarging the proportion of fast rabbits in the gene pool. Foxes that are fast enough to catch the slowest rabbits survive and continue to propagate, but only need to be fast enough to stay well fed.

If foxes became too efficient or rabbits became too slow, neither would survive. All of rabbits would get eaten and the foxes would either starve or have to seriously change their business model.

The cuckoo story is more bizarre. They have evolved to lay eggs that look so much like those of other birds that they are able to drop them in their nests, leaving the unsuspecting victims to do the hard work of nurturing the cuckoo offspring.

Why haven’t the other birds evolved a defense mechanism against the ruse?  Most likely the costs would outweigh the benefits. They nurture far more of their own eggs than those of the deceitful cuckoos and that’s what they need to do in order to thrive.

Expending the energy of a few dinners is more than worth it when life hangs in the balance.  Nature is a great optimizer.

Life and Dinner in Business

Once you become aware of the Life-Dinner principle you start seeing it everywhere. All too often, it is put in clichéd terms of “long-term vs. short-term,” but it’s really about the difference between having a true commitment to excellence and just keeping up appearances.

Consider the following example:

Leadership vs. Optimization: Optimization is about getting more of what you want with fewer resources.  Leadership is about getting your people to want what you want. Leadership requires not only investment, but serious dedication to the overall mission.

It’s easy for an outside consultant to come in and optimize. Leadership doesn’t show up in excel spreadsheets and there are always ways to squeeze out a few points of margin for a few quarters. By then, the consulting project will be over and impressive ROI results will have been delivered.

Issuing directives is always easier than building a consensus. Organizational charts always look better when they are simple and streamlined. The real world, however, is quite a bit messier.

A False Choice

Many would like to pose the Life-Dinner principle as a tradeoff – do you want to eat today or tomorrow? It isn’t that simple. You have to do both.  What is really at issue is whether you truly want to win or just put up stats and make it look good.

Top professional athletes understand this. They don’t ask, “Is it better to practice hard or play hard?” To be at the top of your sport, field or industry you need to constantly work to be your best every day, even when no crowds are cheering and there is no relevant balance sheet item.

Here is an important note: doing your best and being your best does not mean being at your peak at all times. There is a natural ebb and flow of our energy, attention, and intention across each day. Some days you do better thinking than on other days. Some days you are better listener than on other days. Doing your best means being the best you can be in any given moment, even if you know you have done better on other days. Similarly, being your best varies from day to day and from time to time. One cannot be upbeat and enthusiastic all the time. Being your best means getting the most out of a particular moment, even if other moments felt a lot better.

Most of us operate under a myth in business and often in life in general. We think of it as the 110% rule. There is this unfortunate and unrealistic belief on the part of many leaders that they and their people can and should show up and operate at ‘110%’ every day. The danger is that dinner is always more obvious than life. At the end of the day, you know if your belly is full or not.

So, How Do You Measure ROI?

In our quest for measurable ROI, we forget that the term is meaningless without clear objectives. Are we evaluating only for our dinner or for our life as well?

·   Are we happy with brand awareness or do we also measure brand attributes such as quality, value and other category specific measures of satisfaction?

·   Are we satisfied with marketing campaigns that produce sales, or are we working towards consumer advocacy?

·   Do we measure only sales and profits, or are we pushing for an increasing return on capital?

Research studies have shown that the best companies spend years determining which factors drive their business. Key metrics are specific to a company’s strategy and culture and are therefore often elusive. There is no textbook answer.

Dinner is simple. Life is complicated. Don’t let anyone ever tell you differently.