The Agile Scaleup

Using Rap to Run Companies; Launch on the Cheap; Ownership Thinking; RH Workshop Schedule

"...keeping you great" HEADLINES:     Broke: Ran Out of Change   Suggested US Presidential Campaign Theme by CNN Viewer Spring "Rockefeller Habits" Workshops Announced -- Cedar Rapids, Seattle, Denver, Des Moines, Milwaukee, Philadelphia, Austin, Halifax, Vancouver, Portsmouth, Toronto, Portland, and Madison. Dates and details under EDUCATION below. 5 Ways to Launch a Business on the Cheap -- not quite the title FORTUNE chose for my latest Venture column, but if you know someone stuck in a big company and wants to launch a business, the column might be helpful. Thanks to insight readers Chuck Sacco, Eddie De La Cruz, and Clint Drawdy for sharing their corporate escape stories. The column is online and in the February 27 issue on the newsstands. Using Rap to Run Companies -- looks like I'm not the only raging fan of Ben Horowitz (and his blog), partner at the venture capital firm Andreessen Horowitz. Take 4 minutes to read this insightful Feb 20 NY Times article on Ben and how he uses rap to run and advise firms. Notes Horowitz "All the management books are like, 'This is how you set objectives, this is how you set up an org chart,' but that's all the easy part of management (OK, that hurts!)...the hard part is how you feel. Rap helps me connect emotionally." Board Clash -- to further quote the NY Times article: "Recently, for instance, one of the entrepreneurs that Andreessen Horowitz financed clashed with a disparaging board member. Mr. Horowitz advised the executive that he was being too deferential and needed to show his strength. He said he sent the executive 'Scream on Em,' a rap song by The Game, because its "super aggressive" lyrics -- so aggressive that none can be printed in a family newspaper (or my insights!). "I couldn't have explained what I was talking about quite right, but he called and said, 'I've been listening to that song every day, and everything is better,' " Mr. Horowitz said." It's one of the more fun biz articles I've read in awhile - worth the 4 minute distraction - then download some of the rap he suggests for various situations! Ownership Thinking -- we're sending out to book club members, today, Brad Hams' book Ownership Thinking: How to End Entitlement and Create a Culture of Accountability, Purpose, and Profit (read the first 4 pages of Chapter 2 first). Former President of Mrs. Fields Cookies in Mexico, I've known Brad for over a decade through his close association with Jack Stack and the Great Game of Business. I consider Brad's new book the implementation manual for Jack's philosophies of ownership thinking (different than employee ownership), critical number usage, and incentives. Biggest Mistakes with Incentives -- Brad, who is also keynoting the FORTUNE Leadership Summit May 15 - 16, Atlanta with Jim Collins, tackles incentives right upfront -- read the first four pages of Chapter 2 when you get the book and it will pay for your time. There is a right and wrong way to set up incentives - and they are too expensive to waste. One key is to make sure the incentives are self-funded i.e. the improvements being incentivized actually generate cash to fund the incentives. In turn, people mistake incentives for ownership thinking - it's actually the fourth step, not the first - and Brad explains why in those first four pages of Chapter 2. Anchor or Wind -- my latest analogy - does it feel like your growing team of employees is a heavier and heavier anchor you're dragging behind you or are they providing ever more wind to your back? Brad's book will help you turn an anchor into wind! Beijing Bound -- I'm heading to China next week - excited to get back to that dynamic country.

Richard Branson; Bari Jay; White Lodging; China

"...keeping you great" HEADLINES:   Hang with Richard Branson -- more below, but first... Have You Mastered Doing Business with Large Companies? For my next FORTUNE column I'm looking for strategies you've used in landing/maintaining FORTUNE 500-sized clients -- ideas that will be fresh and new to growth firms. What's different about working with them now than five years ago--and how have you adapted to the new realities? Have you found new and highly effective ways to win big-company clients and retain them? Are you using technology in smart ways to build and maintain relationships with Fortune 500-size clients? What early mistakes did you make in working with big companies and how are you avoiding them now? FORTUNE requires I share a rough idea of revenues and whether your company is profitable or not. Email me at [email protected] Common Traits of Hugely Successful Entrepreneurs -- if you're a founder/entrepreneur, please stop what you're doing for 3 minutes and read, study, devour, and live the traits Ted Leonsis outlines in his Feb 6 blog post - he nailed them with specific examples of firms (like Groupon) in which he's invested. Ted continues to lead the world by the way he leads his life. And all BOGers, Ted is keynoting our 20th anniversary reunion Oct 25 - 27, MIT - don't miss it. The Chinese Are Coming -- Germany's eyes are on China. The biggest acquisition of a German company by a Chinese firm took place this week. The "Hidden Champion" Putzmeister, an icon of German manufacturing prowess, was taken over by its Chinese rival Sany. Chancellor Merkel is on a visit to China, which has now become Germany's biggest trading partner. If you care about what's happening in the world of business, read these two quick articles by Hermann Simon entitled "The Chinese are Coming" and "China on the Way to Normality." Chinese Factory with No People -- if you think the Chinese are sitting on their hands, Hermann Simon writes in his second article this week, after a two week visit to China, about his visit to the most modern flat screen production facility in the world, recently opened in 2011. Covering 73 hectares (180 acres), what struck him besides the enormity of the facility was that there weren't any workers, except for a few handling maintenance and programming!! "I was seeing a highly automated factory in the middle of China; one that profits very little from low cost labor." Simon outlines three other mini cases of Chinese business activity that might surprise you. It's why I'm heading back to China Feb 29 - Mar 1 to lead a 1.5 day workshop for EO Beijing and interview a few potential partners. Daily Huddle -- "We've really gotten good at this," notes Susan Parker, co-founder of Bari Jay, an $11 million NYC-based bridesmaid and prom dress manufacturer. "It's phenomenal - everybody knows what's going on everywhere else, so now if dresses are running late and someone picks up the phone they're not babbling." Read more in this Feb 8 NY Times blog by Adriana Gardella about how Mark Green, their Gazelles coach, helped Bari Jay establish a purpose (powerful guide for employees) and daily huddles - and how they are structured. Congrats White Lodging -- if you watched the Super Bowl, did you notice the JW Marriott that was constantly being shown with the image of the Super Bowl trophy? That's the largest JW and newest property of Gazelles' client White Lodging. Bruce White, Dave Sibley, and their team, with over 160 hotels, engage Gazelles' execution coaching process using our Rhythm dashboard system to keep everything running smoothly. Hang With Sir Richard Branson on Necker Island March 24 - 31...limited to a small group; several Gazelles' friends/clients have raved about the experience. Richard, one of today's most inspiring forward-thinkers, plays host at his breath-taking and luxurious home, along with my good friends Joe Polish (President of Piranha Marketing) and Yanik Silver (Founder of Maverick Business Adventures). Its 7 days of marketing and business brainstorming. This is their 4th trip to Necker Island. To get more details, please contact Eunice Miller at [email protected] or by phone at 480-889-3022. If you'd like a preview of what you can expect on Necker Island - click on the link to watch a highlight video from the most recent trip:

Facebook's Stand-up Meeting; More Sales Channels Win; Grew 350%; Feb 16th Webcast

"...keeping you great" HEADLINES:   What's the impact of making the right decisions every day? Successful growth companies do not lack ideas or options - what they lack is the time and resources to do them all. One of the biggest problems is their ability to pick the right one. Attend the webcast - 2 Tests to Know You Are Making the Right Decisions to Achieve Your 2012 Plan by Patrick Thean, CEO of Gazelles Systems and author of Execute Without Drama, to gain access to simple tools that will help your team choose the right decisions. You will move faster to achieve your 90 Day, Annual and 3-5 Year Plans with the right priorities. February 16th @ 1:00 EST Click here to register. PLEASE NOTE: this is a Private Webcast for companies with revenue at least $10 million annually Facebook's Stand-up Meeting -- check out today's WSJ for an article on daily stand-up meetings - they continue to go mainstream as small and large firms find the power and time savings of a short meeting to get aligned. Even Facebook is using them (big IPO news this week). Thanks to Josh Yudin, President of The Academy of Marketing, for bringing this to my attention. More Sales Channels, More Sales -- if you face a question of channel conflict, let it go. The research is clear - the more distribution channels you have (that reach your core customer), the more sales. It's why Dell is now selling through Wal-Mart; and Apple opened retail stores. I was surprised by the number of Growth Summit registrations generated by our LinkedIn efforts. Here's a link to my latest syndicated "Growth Guy" column on the topic. The New Experts -- Bob Bloom, retired US CEO of Publicis Worldwide and author of The New Experts, points out that today's customer has three lethal weapons: Instant access to information, immense choice, and the capability to make real-time price comparisons. Result: Customers are calling the shots in today's marketplace. They want products and services available when and where it's convenient for them. Again, this is why you must be in ALL channels that reach your core customer. Core Customer -- so you don't go broke opening additional channels, it's critical you know who your core customer is - the "juicy red center" of your market as Bob Bloom refers to it - so you can target your channel strategy. Bob's book Inside Advantage is the best how-to book for figuring this out. More specifically, there are four critical decisions - decisions he helped Southwest Airlines, Perrier, T.G.I. Friday's, and hundreds of other leading brands determine when he was CEO of the third largest ad agency in the world: WHO -- Who is the core customer of the enterprise. This defines the potential customers most likely to buy the product or service in the quantity required for optimal profit. WHAT -- What is the inside offering that the business will own and leverage. This tangible and emotional customer benefit is the company's inside advantage. HOW -- How becomes the persuasive strategy that will convince the core customer to buy the firm's uncommon offering vs. all competitive offerings. This sells WHAT to WHO. OWN IT! -- is the series of imaginative acts that will celebrate the company's uncommon offering and make it well known to its core customer. Through these acts, the company or brand becomes what its uncommon offering says it is. It's the fun and magical part of the Growth Discovery Process. Grew 350% in Difficult Market -- since retiring, Bob Bloom has been helping growth firms nail these four decisions in a process that costs a fraction of what big firms paid (it's his passion!). Notes Paul Taylor, CEO and Founder, Webmarketing123: "Bob's Inside Advantage process helped us bring a laser focus to who our customer sweet spot is. Today, our metrics-driven Inside Advantage is an integral part of the language we and our clients benefit from, so it's no coincidence that our revenue grew 350% in a difficult economy." Email Bob and have someone who figures this stuff out in his sleep help you nail down these four decisions [email protected]. His website is www.insideadvantage.org. Bob helped us at Gazelles with similar results - his approach works - and it's why I've integrated his approach into our new 7 Strata of Strategy framework.