The Agile Scaleup

4 Ideas for 2014; Businessperson of the Year; Best of 2013; Avoid Dreamliner!

"...keeping you great"

HEADLINES:

Boeing's Dreamliner Unreliable -- more below, but first...

4 Biz Trends for 2014 -- consider these four ideas in my latest Venture column in Fortune as you prepare your one-page strategic plan

Businessperson of the Year -- and Fortune's winner? Elon Musk. And the key? Ecosystem builder. In an article entitled "The shared genius of Steve Jobs and Elon Musk" they note "To appreciate Jobs' and Musk's contributions, you must pull the camera back. What they did uniquely was to imagine the broader ecosystems in which those products could become transformative." Interestingly, Ram Charan, one of the top biz thought leaders in the world (16 books) noted at our recent Growth Summit that creating ecosystems was what he thought was key as well. It's not enough to create great products - the entire ecosystem in which it operates needs to be designed - and the key word is "design." Please take 3 minutes to read this insightful article.

Best in 2013 -- for a look back over 2013, here's Fortune's take on the best book, best turnaround, best IPO, best building, best movie, etc. It's worth clicking through, picking up topics to discuss with colleagues and customers at the upcoming holiday parties!!

Amazon -- this company (including Zappos) and its founder garnered three of the "Best in 2013" honors including "Best Hiring Spree." Notes Fortune, "In the first three quarters of 2013 it added 21,400 employees, bringing the total headcount to 109,800, an increase in staff of more than 400% over the past five years." However, once hired it's nearly impossible to get promoted notes Brad Stone in his new book entitled The Everything Store: Jeff Bezos and the Age of Amazon. And the review process is brutal, embodied in what are called twice annual OLRs (organization and leadership reviews). Here's a link to Stone's except in BusinessWeek that includes a description of the 10 layers of promotion available in Amazon - might be useful for some - and a link to an internal company presentation on OLRs. Thanks to Randy Cohen, founder of TicketCity for pointing me to this article. I just ordered Stone's book - looks like a good read over the holidays.

Microsoft Ends "Stack Ranking" -- in turn, the big news last week is that Microsoft ended major components of its stack ranking process, mimicked after Jack Welch's practice at GE of eliminating the bottom 10% of the workforce each year, something GE has ended as well. What are replacing it -- more frequent and qualitative feedback sessions. This WSJ article provides more details if interested.

Best Employee Feedback -- based on columns 1 (Core Values) and 7 (Individual KPIs and Priorities) of the Gazelles' One-Page Strategic Plan, the best feedback process is:

1. Every employee is able to objectively answer the question "did I have a good day or week" because their specific performance KPIs are visible and priorities reviewed at the weekly meeting. Usually in the form of checklists, spreadsheets, dashboards, etc.
2. Leaders tie ongoing praise and reprimands back to the core values e.g. "thank you for immediately following up that customer request - this is key to maintaining Ecstatic Customers."

If these two things are constantly going on, the quarterly and/or annual feedback process isn't as necessary. More importantly, weekly feedback gives everyone time to make course corrections.

Avoid the Dreamliner -- I used to live by the rule "if it ain't Boeing, I ain't going" but their new 787 Dreamliner is a nightmare. It's unreliable and unsafe, so avoid looking a flight on this aircraft if you can. Why the rant? Last Friday a software glitch grounded my flight from Shanghai to LA for five hours, eventually leading to the flight being cancelled. This caused me to miss my first paid keynote in 31 years!! A brand new plane grounded by software glitches - inexcusable and dangerous.

Moscow, Mumbai, and Toronto -- my final three events for 2013 - Moscow YPO Nov 26 - 27; Mumbai public workshop Dec 5; and Robin Sharma's "The Titan Summit" Dec 12.

Align Your Team for 2014 -- and here's a link to the rest of the one-day Rockefeller Habits workshops hosted between now and the end of the year - a perfect day to get your team aligned and ready for 2014.

COACHING:

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Update China; Ohio State Football; Save a Fireman's Life; Crowdfunding Video

"...keeping you great"

HEADLINES:

"Crossing the river by feeling stones" -- the perfect motto for entrepreneurs, describing how they navigate their way through the marketplace one step at a time, this quote is attributed to Deng Xiaoping, who explained this is how he would lead market reforms in China in 1978. Significantly, this phrase was repeated by the top Chinese Communist Party officials Tuesday upon releasing their much awaited Third Plenum decisions. It's always this Plenum that sets the direction of China for the coming decade. And the summary (this Shanghai Daily piece provides a concise overview if you scroll down the article)? - deep reforms moving the country to a more market-driven economy. Take two minutes to inform yourself on what's happening in the second largest economy in the world.

China's New Free Trade Zones -- I'm in Shanghai all this week with EO and YPO and though the NY Times looks like it has a good overview of the Plenum decisions, I'm blocked from viewing the publication as well as YouTube and various other websites (I hope the reforms eventually fix this in the next decade)! Nevertheless, everyone is bullish on the country and we're excited to be supporting, with the guidance of our new Chinese partner Eric Schmidt, some significant growth firms in the region with our tools and techniques. There is specific interest in the new Free Trade Zone established in Shanghai a couple months ago. Here's a WSJ China piece on the opportunities this may provide.

New Fire-Free Zone -- after the devastating Arizona fires that killed 19 Yarnell firefighters, Jim Moseley, one of the founding board members of EO and skilled trombonist who performed the last couple years at our Summits in Phoenix, is developing a fire blanket using NASA technology that dramatically outperforms the current blankets. He's looking for donations to help complete the project, a labor of love for Jim. Here's his crowdfunding-like site if you're inclined to help out with a few dollars.

New Fundraising Free Zone -- the SEC has finally issued its rules, all 500+ pages, allowing anyone to invest in crowdfunded ventures, not just accredited investors. Unlike Kickstarter and Indiegogo, which are more retailing websites letting people advance purchase new products/services; true crowdfunding lets you raise up to $1 million from as many people as you like with just a few restrictions. One of the champions of crowdfunding, Sherwood "Woody" Neiss, has shared this short video which provides more details on the new law.

New Way to the End Zone -- ...and last, here's an insightful NY Times article on how Urban Meyer assembled "a collection of nine main assistants unlike any other in college football." Since recruiting this coaching staff The Ohio State University Buckeyes have been undefeated!
Here are a few of the many key takeaways from the article, the first equivalent to Topgrading's "virtual bench" idea as Meyer anticipated going back into coaching:

Urban Meyer started with a notepad, the first page blank. He scribbled "OC" and drew a line underneath. Same with "DC." And "OL."... Those headers stood for various assistant positions -- offensive coordinator, defensive coordinator, offensive line coach -- and underneath them, Meyer wrote the names of potential candidates. He kept the list on him, in his suit pocket, as he analyzed college football games for ESPN in 2011. He tracked statistics, made notes in the margins, scratched names off...Meyer figured he would eventually coach again, and he knew that his next head coaching job, his fourth, would be different. His staff would NOT be stocked with loyal assistants who understood the Meyer Way and its demands.

The spouses matter too...

He also paid attention to the coaches' wives. He had seen others "create conflict in our programs." (So) he scheduled a family night, in which players ate with the assistants' wives, each Thursday, attendance mandatory.

It's all about alignment and practicing how to practice:

Each assistant received a manual, Meyer's coaching bible, with tabs for "recruiting" and "schedules" and "weight training," every detail laid out. He sat down the Assistants the first time they met and went through it all, page by page... He talked about alignment, one of his favorite words. He detailed his philosophy. He brought his staff out to the practice field and practiced how they would conduct practice. He cared little, through the spring of 2011, about schemes and actual plays.

It's a fascinating piece with lessons on how a CEO should assemble and support his/her management team. Thanks to Gazelles coaching partner, and HUGE Buckeyes fan, Dr. Jon Iveson, for sharing this link.

COACHING:

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5 Best Books 2013; Buffett-Munger Advice; Profit/X Examples; Best Strategic Decision; Holiday Gifts

"...keeping you great" 

HEADLINES:

We're good at lifelong learning. Warren is better in his 70s and 80s, in many ways, than he was when he was younger. If you keep learning all the time, you have a wonderful advantage.
	Charlie Munger, Warren Buffett's Partner  Berkshire Hathaway

5 Best Biz Books 2013 -- my latest list is online and on the newsstands in the Nov 18 issue of Fortunemagazine - add these five outstanding biz books to your reading list and corporate library. 

Congrats to Rajeev Agarwal -- speaking of books, I continue to encourage CEOs to write a book as a way to generate interest in their company (potential customers and employees). Rajeev Agarwal, founder of Redmond-based MAQ Software (and GazellesPro member) just released a book entitled What I Did Not Learn at IIT. Clearly geared to attracting tech talent in India, it has both a catchy title and great looking cover! Congrats Rajeev. 

Buffett's and Munger's Best Advice -- rarely interviewed together outside their annual gathering in Omaha, Fortune managed an exclusive joint interview with Warren Buffett and Charlie Munger. Take one minute to scan how they've helped each other over the years (and who feels they helped the other more!). And Munger's take on envy is worth the minute. Then here's a link to the extended interview of the Buffett/Munger duo and several other powerful duos willing to support and learn from each other. Do you have such a biz partner? So long as you get along, it makes the journey a lot more fun. 

Profit/X Clarification -- one of the most important findings in Jim Collins' research still generates a lot of confusion -- his Profit/X concept. In my latest Growth Guy syndicated column, as you prepare your 2014 One-Page Strategic Plans, I delve into the power of choosing the right Profit/X (actually, the numerator can be anything - revenue, employees, GM, etc.) and how the "X" needs to align with your BHAG (Big Hairy Audacious Goal). If all this is confusing, take 3 minutes to scan through the column. It's one of the most important strategic decisions you'll make so it's critical to get it right. 

"H#!! Froze Over" -- ...and check out this short article on what might be one of the greatest strategic decisions of all time - Apple's rebel engineers defying Steve Jobs wishes and making iTunes available for the PC. It's a one minute read if you have time. 

Best Time to Give Holiday Gifts -- knowing that this is culturally specific, John Ruhlin, author of Cutting Edge Sales, suggests the week before Thanksgiving or the middle of January are the best times to give holiday gifts if you want a 100x impact. This way you avoid getting lost in the noise of other gifts your customers receive during the 4 weeks between Thanksgiving and the New Year. Notes Ruhlin, "It is best to give a gift in the middle of July when no one expects it then to be one of 100 gifts a busy executive receives and get lost in the chaos." 

"Thanks" Giving Gifts -- ...and if you're looking for an appropriate gift, books are always great way to position you as a lifelong learner - and a way to share knowledge that will help your customer's business and ignite a business-focused conversation. We have a few boxes (36 to a box @$10/book plus shipping) of The Greatest Business Decision book available as one option. Email Missy Giltner if interested.

COACHING: 

Need help implementing the Rockefeller Habits?