Creative Reaction

Matt Heinz at Blogging Innovation: “I love the idea of employees… thinking of themselves like entrepreneurs.” I couldn’t agree more.

He asks rhetorically, “What constitutes a set of entrepreneurial attributes that employees could emulate?” then answers his own question. I’ve paraphrased (somewhat).

1. Customer-centric thinking.
2. Frugality
3. Creative problem-solving
4. Immunity to fear
5. Acceptance of failure

Imagine having an entire company of people with these qualities. Wow. That’s an engaged workforce.

I came across this excellent post via an acquaintance of mine whom I follow on Twitter (@apsinkus) and since yesterday was Father’s Day, it is both timely and apt.

After seeing his daughter graduate from High School, Serial Entrepreneur Steve Blank took a look back and wrote Epitaph for an Entrepreneur.

At the core of his post is a list of “Family Rules” and I’m stunned to say I am in complete agreement.

No one says on his deathbed, “I wish I worked more”. In fact, many say, “I wish I spent more time with my family.” If you value your marriage and your children, read Steve’s post now.

Just yesterday, I posted about the fallacy of trying to control the future by predicting it, and now I’ve come across this. Matt at Signal vs. Noise  summarizes a long book-launching interview, in three simple points:

1. Conventional approaches and planning don’t work when you’re trying to get into new spaces
2. Assumptions are what get most companies into trouble, and
3. It’s not failure that companies need to avoid, but rather “failing expensively”

If I could add a fourth point it would be this:

4. A company’s best ideas will fall through the cracks unless there is a way to capture and process them 

So harness the collective insights of your employees. Move ahead quickly and get new products or services in front of people. Plan in such a way that when things do not go exactly as planned, you can quickly recover and move in a better direction.

Small businesses, you can take these cutting-edge insights which some of the more innovative corporations are implementing, and use them to your advantage within days, not months!

A really interesting piece on Mavericks at Work contrasts the differences in thinking between MBAs and Entreprenuers, and declares that Entrepreneurs are better suited to survive tough times. (Life is too short for spoiler alerts.)

The post focuses on the fascinating research of Saras D. Sarasvathy, which focuses on “the ‘causal’ reasoning used by MBAs versus the ‘effectual’ reasoning used by entrepreneurs.”

Lifting an entire section from the post:

Causal reasoning, she explains, “begins with a pre-determined goal and a given set of means, and seeks to identify the optimal—fastest, cheapest, most efficient, etc.—alternative to achieve that goal.” This is the world of exhaustive business plans, microscopic ROI calculations, and portfolio diversification.

Effectual reasoning, on the other hand, “does not begin with a specific goal. Instead, it begins with a given set of means and allows goals to emerge contingently over time from the varied imagination and diverse aspirations of the founders and the people they interact with.” This is the world of bootstrapping, rapid prototyping, and guerilla marketing.

The MBAs’ fallacy is that they try to predict and thereby control the future. Entrepreneurs forge ahead using the resources at hand and nimbly adjust to surprises.

Worth reading. Check it out.

So much for my “getting an MBA for the fun of it” plans. Unless there’s such a thing as a strictly entrepreneurial MBA. Hmmm…

In an NYT article entitled Even the Giants Can Learn to Think Small (free subscription required – don’t bother) we see another nail in the coffin of the “if you’re not growing, you’re dying” mantra.

Part of the “thinking smaller” movement is a desire to provide better service through personalization, and part of it is the need to be leaner in an increasingly global marketplace. In the Times article, Professor Thomas W. Malone of MIT’s Sloan School of Management offers another reason – employees’ “noneconomic goals” like freedom, personal satisfaction and fulfillment. “How much energy and creativity might be unlocked if all the members of an organization felt in control?” he asks. Thinking back, this ties in perfectly to other times we’ve mentioned globalization making good talent harder to attract and keep.

Being smaller and agile has competitive advantages as well; companies as a whole tend to be more entrepreneurial. Philip Rosedale, founder and chairman of Linden Lab (Second Life), says optimizing a company for creativity involves helping all employees regardless of position develop an entrepreneurial spirit. “Most companies erroneously focus on competition and on differentiation from their competitors…the business opportunity lies in turning creativity into productivity.” And as most entrepreneurs know, ideas are worthless unless they are executed.

(If you do read the article, you may pick up on some similarities between Linden Lab’s and Pixar’s philosophies. And if have a really good memory, you’ll remember some similar posts on company and team size here, here, and here)

So, focus on fostering a collaborative, entrepreneurial spirit company-wide, and not growth for the sake of growth, for your business’ success.

I love this story! I’ve long held the opinion that the agency/client relationship should be a long-term commitment based on trust, not unlike a marriage. Staking your livelihood on how well you help a client be successful is bold, as well as allowing an agency to own a piece of your company, and rewarding its work based on performance. Story on Adweek. A number of other groundbreaking examples of agencies owning their ideas (aka IP, aka Intellectual Property) are detailed.