Criteria For a Successful Startup

July 30th, 2010 § 0

Every successful entrepreneur has his own criteria for measuring the success factor of an idea for starting a business. There is also value in studying how others make decisions. Norm Brodsky, a veteran entrepreneur who founded and built half a dozen large companies, uses a simple approach when starting a business.

According to Brodsky, three factors must be at play when venturing out:

An Established Concept

Education can be expensive. Educating the masses can be really expensive, not to mention a daunting task for a business to undertake. Stick with something people are familiar with.

Focusing on an established concept does not lessen your ability to create innovative and revolutionary products. Take Apple for example. They’ve been doing the same thing since day one – developing technology that is intuitively simple, functional and beautiful. The iPad, the iPhone, the Touch – these are all familiar devices. The market does not need a crashcourse on what these devices are and what they do. Yet, they are truly remarkable products that challenge our accepted perception of what technology is able to do, how it’s able to do it – and its aesthetics. Human-centered design has been around for centuries, yet Apple continues to push the envelope.

Takeaway – Instead of painfully searching for the “next big wow thing”, identify a familiar or understood industry/product and build upon it. Just look at what Aaron Patzer did with mint.com – genius!

» Read the rest of this entry «

Mediocrity Fears Excellence

July 9th, 2010 § 0

Mediocrity is intimidated by that which is better. Mediocrity does not strive for improvement. Mediocrity does not believe in change. Mediocrity loves the comfortable. Mediocrity attempts to silence the more excellent. But the best will always rise to the top.

The future belongs to those that trample over mediocrity.

We Need More Forms, Hoops & Procedures; How to Kill Your Business the Bittersweet Way

July 1st, 2010 § 0

A simple theory of input-output in economics states that as more resources are added (the input) such as staff, raw material, time and technology, then productivity (the output) will increase as well.

There does come a tipping point when the production curve makes a downward dash. As input is increased beyond the tipping point, it will begin have an adverse effect on productivity, causing production to decrease quantitatively and qualitatively.

If 5 workers are assigned to lay shingles on a roof of a single-family home, they will get the job done much quicker than with 2 workers. If 20 workers were assigned to the same project, productivity would decrease as communication becomes more complex, task assignment is unaccounted for, worker mobility is limited, etc.

The same holds true in any other system and context.

» Read the rest of this entry «

It’s In Our DNA to Create

June 25th, 2010 § 0

We as humans are creative beings by nature. By our design and DNA we are wired to make stuff and create. The creative drive comes from a inner place, far behind our intellect and our emotions. It is something that cannot be learned or taught. It can only be realized and developed. Since this pure creative drive comes from an inner place, the process of birthing an idea is often hindered and polluted by our intellect and our emotions. Environments that stimulate all five senses enable us to tap into this inner place where the best ideas live. While our senses are being stimulated and engaged, we allow for the ideas to be heard. Yes, there comes a time when we need to convert this idea into a feasible product using our intellect and our emotions. But, we need to find the seed of the idea. And the way to tap into this source is to block out our sensory receptors.

This post is a further explanation to Airports, Coffee & Pavlov’s Dogs.

Airports, Coffee & Pavlov’s Dogs

June 22nd, 2010 § 1

Have you ever wondered why certain environments, music and even scents inspire you and stimulate creative thought and ideas? To expand on this question even further. Why do we come up with the greatest ideas when we’re not coming up with ideas? When we play, ideas happen.

We’re in a constant cycle of growth and learning. As we move through life, we unconsciously develop ways to make our life more efficient by creating habits and routines. We find shorter ways to get from point A to point B. We develop new systems to get things done. And, we often learn efficiency and fall into habits without thinking. Our learning and growing is never without influence; whether the influence is a person, a story, an idea or an internal drive.

One of the forms of learning is Associative Learning. We often refer to this as Classical Conditioning (yes, the story of Pavlov’s dogs!) In a nutshell, if the brain is presented and conditioned with stimuli that evokes a specific response, then anytime a similar stimuli is presented, the same response is triggered. Over time, our minds develop an association between the stimulus and the response.

» Read the rest of this entry «

Hire the Freaks, Crazies and T-Shaped People

June 18th, 2010 § 0

Every organization needs a strong team. Every progressive organization needs a dynamic team that will lead the organization forward. Without a dynamic team of unique personalities, likes and interests the creative culture and the life of an organization grows bland and stale. Individuals who are nontraditional create a healthy tension in the way ideas are generated, shared and executed by offering unpredictable perspectives. Some of dynamic individuals include:

Freaks – As Tom Peters put it, freaks are the only (only) ones who succeed – as in, make it into the history books. Jeremy Gutsche states that Nontraditional thinkers offer the maverick ideas and the personality a company needs to adapt.

Crazies – Hire Crazies and avoid moderation (Kevin Robers, CEO of Saatchi & Saatchi)

T-Shaped – Tim Brown of IDEO, fills his company with individuals that posses this quality. As Tim puts it

T-shaped people have two kinds of characteristics, hence the use of the letter “T” to describe them. The vertical stroke of the “T” is a depth of skill that allows them to contribute to the creative process. That can be from any number of different fields: an industrial designer, an architect, a social scientist, a business specialist or a mechanical engineer. The horizontal stroke of the “T” is the disposition for collaboration across disciplines. It is composed of two things. First, empathy. It’s important because it allows people to imagine the problem from another perspective- to stand in somebody else’s shoes. Second, they tend to get very enthusiastic about other people’s disciplines, to the point that they may actually start to practice them. Tshaped people have both depth and breadth in their skills. (Read full article by Morten T. Hansen)

Progressive minds and thinkers have an advantage over survival. Every species that does not adapt will eventually become extinct. The same holds true for individuals and businesses. Smith Corona would be in a very different place had it only staffed it’s offices with nontraditional thinkers.

Great companies understand this principle. And, the smart companies do something about it.

Quantity is Not Quality – Online Users & The Quality of a Click

June 14th, 2010 § 0

What does concrete data really say about the quality of a click. How can we measure the quality of concrete data to better understand online users within our communities?

If 500 individuals “like” a post or a page, it is simply 500 individuals who clicked the “like” button. We can assume if the number is high, then the probability of a genuine click is higher. But this does not necessarily provide us with a clear picture of the quality of the clicks and users.

I’m not sure that we can effectively track social media efforts, yet. This might be one of the reasons why companies across the globe are having a difficult time justifying cutting their ad dollars out of traditional media to fuel social media. But, if social media efforts were brought to a halt at a brand that currently utilizes online social channels, there would be a measurable dent in their bottom-line, even thought we can’t track the upfront efforts.

Looking at hard data is a classic quantitative approach. And there’s always validity with numbers. But, how do we measure the quality of the data? Certainly we can make educated interpretations of the data, but this will not give us a true understanding of the quality of our users, followers or community.

I’m a firm believer in numbers and concrete data. Numbers cannot lie. But numbers are representative of quantity, and not of quality.

(A response & dialogue to Mitch Joel’s post on The Almighty Endgame Of Marketing on Six Pixels of Separation)

Testing Your Ideas

June 11th, 2010 § 0

No entrepreneur wants to waste their time developing a business idea that will only end up flopping. Here’s a simple test to determine whether your idea has a chance of becoming valuable and desirable, or you’re just wasting your time and resources.

The above drawing takes into account two factors, PR value and Needs value.

Bottom Left -If your idea falls into this quadrant, just stop. No one will ever buy your product, nor will the press care for the lack of a story.

Top Left - This quadrant can be described as the typical publicity stunt without the proper backing. The story is great. PR loves it. Mass exposure is achieved. But the immediate rise is short-lived after the public realizes your product is without value and doesn’t fill an actual need.

Bottom Right – A great idea without PR support is paved with a journey of an uphill push. Eventually the product will make it into the mass market, only after it’s passed the chasm.

Top Right – If you’re story or idea is newsworthy, it is the best free advertising anyone can get. If you’re story is really good, it will spread like wildfire through blogs, tweets and likes. A great idea coupled with immediate publicity equals a true winner.

Bottom line, as you come up with ideas, make sure people will buy it and there’s an interesting story behind it for the press to eat up.

Thank you @gaeblerdotcom for sharing your approach on Gaebler.com

Work & Play. The Art of Living

June 2nd, 2010 § 0

The master in the art of living makes little distinction between his work and his play, his labor and his leisure, his mind and his body, his information and his recreation, his love and his religion. He hardly knows which is which.

He simply pursues his vision of excellence at whatever he does, leaving others to decide whether he is working or playing.

To him he’s always doing both.

~ James Michener, Author

Bad Meat Detector Labelling, a Visualization of Freshness

June 1st, 2010 § 0

This is genius innovation! A labeling system that reacts to the product and tells a story.

Consumers are conscious over the quality of food products they purchase, and often the concern is just as equal over the legitimacy of food labels.

To solve this problem, To-Genkyo designed a food label that changes color by reacting to ammonia given off when food is spoiling. If the product is no longer edible, the change of color makes the barcode non-scannable.

» Read the rest of this entry «

Unknown Color Theory

June 1st, 2010 § 0

The most commonly known and considered aspect of color:

  • Chroma – The actual color. We simply refer to this aspect as color. When people talk about matching, they’re referring to this aspect.

The least considered aspects of color:

  • Value – The lightness and darkness of a color; tints and shades.
  • Temperature – Whether a color is cool or warm, and yes a blue can be warm or cool.
  • Intensity – The vibrancy of a color.

The unknown, and crucially important, aspects of color:

  • Distribution – The location of color, where the color is used and the proximity of a color to other colors. The nature and personality of a color can drastically change when it’s location is changed.
  • Quantity – The amount of a color used. Large amounts of red will be perceived differently than red used as an accent.


Deductive & Inductive Reasoning As Opportunities

May 28th, 2010 § 0

The greatest ideas typically result from Abductive Reasoning, where one looks at a set of seemingly unrelated data with the understanding that a solution is there.

Two additional reasoning methods can be used to develop ideas and explore opportunities, Deductive and Inductive Reasoning.

Deductive Reasoning (DR) begins with a Theory, an observation or speculation about a particular interest or subject; a belief. According to the New Oxford American Dictionary, a definition of Theory is a “supposition or a system of ideas intended to explain something, esp. one based on general principles independent of the thing to be explained.” A Hypotheses is then formed around the Theory, to provide an explanation that is not based on concrete evidence. Through a series of testing, observations and prototyping the Theory is proven either true or false. DR works from the general to the specific.

  • Application: DR works well with existing ideas (products, services, beliefs). Implementing DR in a creative session can expose weaknesses of a particular idea, thus providing an opportunity to improve the idea, or create a new one.

Inductive Reasoning (IR) works from the specifics (observations, testing, prototyping) to the general (The Theory).

  • Application – IR is a great tool that can be used by entrepreneurs to identify and capitalize on trends. By observing cultural nuances, social shifts and early-adopter behaviors, theories can be concluded and turned into entrepreneurial opportunities.

Having a broader understanding of reasoning and logic, additional approaches are available for identifying and generating ideas.

Flow Theory: Eliminating Complacency for Maximum Results

May 20th, 2010 § 0

Complacency and apathy are the beginning of a downward spiral; for individuals and organizations. In the context of productivity and accomplishment, a forward tension exists between two factors; Skill Level and Challenge Level.

Skill – the ability to do something well; expertise
Challenge – a task or situation that tests someone’s abilities

Both factors are organic, ever-changing and expandable. Therefore individuals and organizations have the ability to maximize the output of ideas, innovations and productivity by identifying and intentionally balancing the Skill and Challenge levels.

Flow theory, coined by Psychologist Mihaly Csikszentmihalyi, is the mental state of performance when an individual with a task at hand experiences energized focus, complete involvement, and achievement.

Flow is focused motivation. It is a single-minded immersion and represents perhaps the ultimate in harnessing the emotions in the service of performing and learning. In flow the emotions are not just contained and channeled, but positive, energized, and aligned with the task at hand. To be caught in the ennui of depression or the agitation of anxiety is to be barred from flow. The hallmark of flow is a feeling of spontaneous joy, even rapture, while performing a task. (Emotional Intelligence, Daniel Goleman)

According to Mihaly, three condition must be present to achieve Flow:

  1. One must be involved in an activity with a clear set of goals. This adds direction and structure to the task.
  2. One must have a good balance between the perceived challenges of the task at hand and his or her own perceived skills. One must have confidence that he or she is capable to do the task at hand.
  3. The task at hand must have clear and immediate feedback. This helps the person negotiate any changing demands and allows him or her to adjust his or her performance to maintain the flow state.

If one possesses highly developed and unique skills, and applies the expertise in a non-challenging context – feelings of relaxation, boredom and dissatisfaction will accompany the task, ultimately leading towards apathy and complacency. Similarly, if one places themselves in a highly challenging situation without having the right skill set, feelings of anxiety and worry will arise – also resulting in apathy and complacency.

Therefore, by balancing high levels of Skill and Challenge, an individual and organizations are able to generate high output of ideas, productivity, satisfaction and forward momentum.

Given the organic nature of Skill and Challenge, one must continually strive to develop skills, and apply the skills in highly challenging situations.

Ready, Fire! Aim

May 19th, 2010 § 2

Kevin Roberts, CEO of Saatchi and Saatchi lives his life and operates his business by a simple credo:

1. Ready. Fire! Aim.
2. If it ain’t broke…Break it!
3. Hire crazies.
4. Ask dumb questions.
5. Pursue failure.
6. Lead, follow…or get out of the way!
7. Spread confusion.
8. Ditch your office.
9. Read odd stuff.
10. Avoid moderation!

Just Get Things Done, and Not Another Strategy Plan!

May 18th, 2010 § 0

“We have a ‘strategic plan.’ It’s called doing things.” ~ Herb Kelleher

  • It’s not about talking to do something
  • It’s not about thinking to do something
  • It’s not about planning on doing something
  • It’s not about creating hoops to jump through
  • It’s not about creating forms
  • It’s not about distributing memos
  • It’s not about meetings
  • It’s not about adding more resources
  • It’s not about inner-office politics
  • It’s not about bureaucracy
  • It’s not about policies
  • It’s not about the leadership
  • It’s not about nostalgia
  • It’s not about could’ve, should’ve, would’ve
  • It’s not about playing business

It’s about getting things done!

To Identifying The Purpose, Answer the “Why” Question

May 18th, 2010 § 0

At the beginning of the day, every organization must ask themselves the provocatively dumb “Why?” question; “Why are we doing this?”

Non-monetary success cannot be determined without understanding your true purpose behind what you do? Getting into business to make money is not the purpose, it is merely a result of the vision that birthed the idea which has been translated into a viable business.

Organizations like Apple and Starbucks understand their Why, Microsoft and Dunkin Donuts does not.

Variations of Why Questions:

  • Why should anyone care about what you do?
  • Why are you doing what you’re doing?
  • Why should you, the leader, care about your idea?
  • Why do you think your idea (product, service, belief, etc.) is needed in this world?
  • Why should your customers spend their money on your idea?
  • Why should your employees care and support your idea?

If the above questions cannot be answered, your business is simply just operating without a true purpose – even if monetary success is achieved.

Target of a Genius

May 16th, 2010 § 0

Talent hits a target no one else can hit; Genius hits a target no one else can see.

— Arthur Schopenhauer

From Inside Out – How to Create Change

May 13th, 2010 § 0

How do you explain why others are able to achieve things that defy all assumptions?

All the great leaders and organizations in the world think, act and communicate the exact same way, and it’s the complete opposite of how everyone else does it.

Very few organizations know why they do what they do, their purpose, their belief, their cause.

Why does your organization exist?
Why do you get out of bed in the morning?
Why should anyone care?

Typically, most organizations think, act and communication from the outside in (starting with the What, then How, and finally Why), going from the clearest to the fuzziest.

The greatest individuals and organizations think from the inside out – starting with the Why.

Watch the full story by Simon Sinek…

Law of Diffusion of Innovation

May 13th, 2010 § 2


Innovators 2.5% – These are the ground-breakers, the risk-takers, the creative thinkers and entrepreneurs whom by nature are designed to change the world.

Early Adopters 13.5% – In this category are the individuals that believe in the product, the ones that buy the story out of an emotional decision – an inner drive to identify oneself with something of similar value and purpose.

The Chasm – Between the Early Adopters and the Early Majority exists The Chasm, the tipping point before a product is accepted by the mass market (68%, Early and Late Majority). When looking at a new business conversion rate, if your figure has not reached the 12-15% mark, your product has not entered the mass market.

Early Majority 34% – These people will not try something until someone else has tried and tested the product.

Late Majority 34% – This group will only welcome the idea and product long after the majority acceptance. These are the skeptics.

Laggards 16% – This final group essentially has no choice but to accept the product. Either tradition or ignorance defines this category.

Creativity & Innovation Dependency

May 12th, 2010 § 0

Creativity is what’s needed for Innovation to happen.
Innovation is what could happen as a result of creativity.

« Older Entries