Archive for the ‘Business’ Category

A Different Business, My Wife’s Business

July 20th, 2010

It is hot. Actually, hot is an insult to the actual temperatures this summer. My wife, who just started her 8th month of pregnancy, starts her day sitting on the ground, weeding or picking vegetables! Sounds odd? Sounds bizarre?

It all started when we first moved to California. My wife, a straight-A student with scholarships out of the wazoo, was trained as a psychologist and practiced with the mentally ill. She decided she was sick of the mainstream and even more than that, she wanted a job where she wouldn’t need to talk all day. She checked her options and found an organic gardening course and a carpentry course. I, in a last attempt to stick to productivity and something useful, pushed towards carpentry, but lost the battle as she missed the registration’s close date, so she went to study organic gardening in San Francisco. Life is what happens while you are busy making other plans.

She was hooked. She found her destiny! Before I knew it, she became an organic advocate, what you may call tree hugger, earth eater, and I became the enemy of the world representing the corporate capitalism in all the “interesting“ gatherings and new friends she attended and made. What’s life without some excitement?

She graduated her course and started working on different farms and CSA’s (Community Supported Agriculture) and even completed her Master’s degree in community agriculture. In 2003, she had her mind set – she wanted to open her own community supported agriculture farm. We sat down and wrote a business plan, invested some money, got some ground and started. In less than a year the business was profitable. No aggressive marketing and promotion, just word of mouth and reputation.

Today, my wife, her business partner and their employees supply fresh vegetables once a week to 400 families, from the field straight to the house. Organic vegetables are usually 3-4 times the cost of conventional produce, but my wife was not willing to charge that much – she agreed to a maximum of 30% on top of conventional market price. Agriculture workers get paid minimum wage if they are lucky. My wife insisted on paying way above minimum wage even at the cost of hurting margins, just because that is what’s right in her mind! A lady with core values.

I saw this business will catch wind and told my wife that after we succeed with this one, we will open a franchise and open a network of 200 of these farms worldwide based on our expertise. She looked at me and smiled gently as if forgiving a little child and said, “keep your capitalist colonial aspirations to your business, I don’t want to grow beyond the point where I know personally and talk once a month with each one of my customers.”

And so it was. Despite growing demand and a waiting list double the amount of customers she has, my wife is not willing to grow the business. She believes in small and personal and that’s it, end of story. In the meantime, to address the demand that my wife is not willing to fulfill, she helps some of her employees and other farming entrepreneurs open similar CSA’s , coaching and mentoring them. When I ask about competition and what if they end up cannibalizing the business, she smiles again, saying competition is good and there is enough for all of us. Interesting concept .

I can go on and on about this business that operates in a whole different approach and set of values than what we know from the high-tech industry. I can go on and on with stories about happy customers and missed business opportunities. It won’t change the basic fact that it is an amazing business, ran by amazing people who do good to lots of families.

This post is dedicated to all the folks out there who believe that business is about the creation of good products and services, and doing good to employees, customers, partners and the communities we live in.

Happy birthday my dear wife.

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0:0 Why?

June 22nd, 2010

I don’t know if you are following the World Cup games in South Africa. I am not a big soccer fan but I still enjoy loosely following this special event. I am especially fascinated with the connection between team sports and business management, and leadership in general.

All teams are made out of players who don’t usually play together, with no financial incentive to win. So what drives them? Ego, national identity or simple competitive spirit? To make all of these work, you need a leader. To take a bunch of talented players and make them tick leadership is required, the same leadership that is required in business, in military, in politics and in many other fields.

It was amazing to read about the British team eliminating their goalkeeper from the opening team due to a mistake in the first game. Guess what?  The second game ended at 0:0. A very simple axiom in management is that you can’t manage with fear! You need to support your team even if they don’t succeed. A regime of fear will kill innovation and motivation and you will get 0:0.

Remember that! Lead, don’t scare! See the spirit Maradona is driving into his guys…

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Bernanke Offers a Lesson on Happiness

May 19th, 2010

It took me some time to mention this blog post to you folks but its relevancy doesn’t fade away.

This post in the Wall Street journal by Jon Hilsenrath summarizes Fed Chairman Bernanke’s lecture about a Lesson on Happiness.

We hi-tech, especially Venture Capital based startup folks and specifically founders and CEO’s, tend to read only the first point and misinterpret it as “Money is the only thing that matters.”

Well, a small piece of advice: read through all the points and make sure you get to the 4th, 5th and 6th points – they are as valuable as money if not more.

Those of you who have founded a company or who run one or manage parts of a business, ask yourself how these points manifest themselves in your management style, approach and most importantly, in your actions.

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LeBron James and the Self-Satisfaction Challenge

May 13th, 2010

The other day, the Boston Celtics took a 3-2 lead in the NBA conference semi finals against the Cleveland Cavaliers. First of all amazing basketball, second amazing fight, third admirable against all odds dig in deep by the Celtics, never say die and just go out there and make it happen.

I don’t know where it is going to end, but I am willing to gamble that the Celtics will take it all, not because they are a better basketball team but because they have character and character is what matters. LaBron and team have a chance to win and prove once and for all that they have it in them and don’t choke when it matters.

I like LaBron. He is no doubt a gifted basketball player and a true fighter, but something bothers me with the crowning of a king before he has ever ruled one day in his life, and even then crowning is not my cup of tea. All this talk about being great, winning championships, number 23 T-shirt, owning a basketball team etc. is way too much coming from someone who has yet to win a championship.

In business, like in sports, a good team never celebrates too early and never declares victory before its time. Winning a POC, being selected and even closing a deal doesn’t mean you are done. You still need to make sure the customer uses and gets value from your product and that your next releases stay ahead of the curve.

So when you lead a sports team, a business team or any other team, enjoy victories but never become arrogant, never think you are on top of the world, because the moment you do that, someone will come and topple you down.

LaBron has the opportunity to become a winning leader or stay just a very talented basketball player, time will tell.

Let the game begin…

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IT Billing and Chargeback – And What Makes Me Happy

April 22nd, 2010

They say a good leader is tested in his absence. Well, I will test that some day. In the meantime, I get filled with joy and know we are doing well when good things happen without me even knowing about them.

The joy of when you get your company from 0 to a place where deals you’ve never heard of just close and features you have never thought of are added to the product is unbelievable.

I was reviewing demand generation campaigns today and watched a presentation prepared by Cummins on their use of our solution for billing and chargeback and the benefits they have achieved.

Cummins has been my customer for more than 5 years now. I have visited them many times. We have presented jointly in different events. But I have never come across such a simple, straight-to-the-point, fact-based story of our joint success. No glamorized design or sophisticated marketing copy, just pure value as it comes straight from the Midwest.

Watch the presentation here:

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Go-To-Market Strategy and Culture

April 13th, 2010

In the Frankfurt airport, on my way back home. I love visiting customers in Germany, many of them real old hard core industrial companies, the kind that actually produce stuff people use. I arrived at one of the customers, a large manufacturer, signed in and started making my way to meet the CIO.

I was walking through many manufacturing buildings, all well-organized. Next to each building’s entrance were old-fashioned black bicycles with a license number and a small basket, property of the company used by all employees to get around this large manufacturing plant. The sidewalks were full of employees in blue overalls riding bicycles from one place to another. An information sign shared the fact that there are 6,500 employees on site, 75% blue collar, 20% white collar, and 5% trainees. I kid you not – I did not invent this. In some places blue collar employees are a big source of pride and rightly so!

The meeting with the CIO and his team was fascinating. These guys have been doing for 14 years now, in Excel spreadsheet and Access database, what our products do. These folks have an IT Business Service catalog in place since 1994. No one was even thinking about that then. They are doing everything: Service Catalog, IT usage based cost allocation, IT actual vs. budget tracking, IT Unit cost analysis, IT billing and chargeback and much more. Obviously they were thrilled to see there is an off-the-shelf product for all of this that will make their life much simpler.

This brings me to an important and frequently overlooked business strategy aspect: culture! When deciding how to go to market, where to start selling, where to expand to, often companies analyze the size of relevant available markets, price point, leverage, accessibility and so on. A missed but very important parameter is the cultural fit of your product or services to a specific market. Not all cultures are equal. A product that will sell great in the US will not sell well in Germany, by definition. Culture heavily influences your addressable market! Don’t forget that – you can avoid lots of wasted time and money.

Some homework on this topic for all of you:
1. Why is Starbucks an amazing success in the US but a miserable failure in France?
2. In what country are text messages the most popular and in which the least, and why?

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Details, Details, Details

March 25th, 2010

In management school (life for me, I am a horrible academic student) they teach us that to delegate responsibility and think strategically is the right way to run a business or any other organization, and in general I would agree, but why then are the most successful founders and CEO’s all detail-oriented in a way that can drive you crazy and cause an MBA professor to jump off a cliff? Bill Gates, Steve Jobs, Larry Allison, just to name a few.

I am spending the last week accelerating our marketing activity to ride the tremendous swell of success we are experiencing. The amount of details one needs to master and pay attention to is always mind-boggling, and as always, god or the devil is in the details, depending on how good you and your team are.

Marketing, like anything in a business, doesn’t work if you are good only in volume and process. Success depends on the very small critical things. First and above all clean, sharp , attractive copy and design of everything you do, banners, landing pages, Adwords, website, presentations, product UI and much more. Second is focused, specific, narrow detailed targeting, to understand the very intimate details of whom you are targeting and how. Third is accessibility. Getting to and doing anything with your company or your product or your services should be the most accessible, easy to do thing on the face of this earth.

When you try to apply these principles to a task list like the one bellow, you end up with lots of details, details, details.

Lead generation campaigns

Integrated campaigns
Webinars
Blasts

Events

Events
Road shows
Local groups

Web advertising

Google Adwords
Banners and landing pages at key media by keyword
Banners on competitor key mentions

SEO

Keywords
Rankings

Social media

Blog
Twitter
Facebook
LinkedIn
YouTube
Other

Web site

Design
Landing pages
Social media
More videos
Use cases
Wider Solution option

PR

Cloud
More
Talkbacks

Analysts

Regular briefings
Every six months, a day with Forrester and Gartner
White papers
Webinars
Case studies
Twitter
Webinar and blasts invites

Sales support

Sales presentations
Specific solutions presentations
Demos
Collateral

Strategic

X integration with
x
y
z
(Marketing censored the actual names, how do you like that they pay attention to details!)

ECO System

So who is right,  MBA schools or Bill Gates, Larry Ellison and Steve Jobs? I will always go for the latter. Well, the truth, like everything in life, is somewhere in the middle. You need to be able to go very high and strategic and at the same time very low and detailed. When you go low and detailed do it in a coaching way, in a way that builds the foundation for you team to continue being detail-oriented and care about every bit, even when you are back to strategy.

To succeed, you must have GREAT people and a talent in passing the spirit of what you are trying to achieve, not only the tactics and process. A practical suggestion? Never compromise in hiring, lead by example, dive into details and care about them.

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A Marketing Dilemma

March 16th, 2010

Do you go wide or specific?

Every start up at some point faces the dilemma whether to be very specific in its messaging or go broad. Specific is good. It is simple, to the point and great for lead generation and sales. On the other hand, wide sets a vision and defines a category which helps with investors, bankers etc.

My opinion is very clear: describe what you do in a very specific, easy to understand way, and good things will follow. The majority of successful software companies started very focused and with a very simple message. Mercury interactive- testing, Success Factors – employee performance management, Oracle- data base, Salesforce.com- sales force automation and the list goes on, I apologize in advance to those I did not include…

Broad messages and 3 letter acronyms are for well-established companies. Mercury at above $400M allowed itself to try Business Technology Optimization BTO. At that size, you can try. SuccessFactors, after going IPO and passing $100M in revenue mark, allowed itself to shift from “employee performance management” to “Business Execution Software (BES).”

That’s all great, but not for start-up companies. Keep it simple! Just imagine a kitchen Utensils Company would position itself as Lifestyle Optimization Solutions (LOS). They wouldn’t sell even one food processor. Customers will always reward you for no fluff, straight and to the point practical communication.

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The Art of Usability and Product Packaging

March 11th, 2010

The mission is easily defined: create a software solution that a potential buyer will get an evaluation login for, and after a week playing with the software, she will choose to buy a subscription to use the solution.

Simple ha! Simple to set as a mission, very tough to execute on.

The way to success goes through intimately understanding your customer and use cases, a simple design, a clean look and feel, lots of “no we are not doing that,” out of the box content, data cleansing and mapping automation.

My product management and engineering teams are getting there very soon. We are leading the way as the first non-contained software, software that relies on enterprise data, to-go SaaS – and successfully.

Stay tuned. Amazing stuff is about to come!

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