How The Mighty Fall

Last week, I went to select a book for a short trip that I could easily carry and read quickly. Two books in my need-to-read pile fit this criteria: "Only The Paranoid Survive" by Andy Groves, and "How The Mighty Fall" by Jim Collins. At the time, I did not consider that these two books addressed the same topic. Both discuss challenges facing companies, and explain that some companies rise to the occasion while others falter. Andy Groves describes how Intel transitioned from memory to microprocessor, dealt with a Pentium flaw in 1994, and managed through the explosive growth of PCs. Intel overcame these potentially catastrophic events thorough disciplined pursuit of its core business philosophies. Jim Collins studies great companies that stumbled or failed in an attempt to understand the underlying causes of business decline.

Your Unfair Advantage

In his recent blog post on pitching to potential investors, Guy Kawasaki argues that a startup needs an unfair competitive advantage. He states "That’s why they are called unfair advantages...If everyone had them, the field was level, and everyone was created equal, then they would be called fair advantages, which is an oxymoron." Whereas pitching to investors is important, it is vastly more important for a startup to actually execute its unfair advantage. Unfulfilled promises to investors do not leave anyone very happy.

My experience has convinced me that the primary unfair advantage of any  startup is an ability for rapid decision making. I am not just referring to the early days when a startup must be opportunistic and meet the needs of any customers that it finds. Later, as a startup attempts to break out to become a successful mid-size company, it must also leverage its ability to quickly make correct decisions. Success requires an organization that combines three essential elements:
1) the right team,
2) clear objectives,
3) and a constant focus on rapid execution.

Goal Setting

Over the past few months, my management team and I have been working on our 2012 Operating Plan. We are in the process of defining our goals, metrics, and budgets for 2012. This process, which we do every year, is always a combination of analysis, strategic thinking, constructive conflict, and some educated guesswork.

Great Managers Enable Exceptional Performers

Most everyone wants to perform well in their work. Very few people wake up in the morning wanting to fail or do poorly. Occasionally you will find someone with a bad attitude, which can be easily resolved by removing that person from your organization. More often, those who do not perform at the highest levels are missing one of the following:

1. clear expectations on what is required of them.
2. the necessary training or procedures to know how to do their work correctly.
3. the materials and equipment necessary to perform well.
4. the proper fit into a role at which they can excel. 

Execution Matters More (than Strategy)

What is execution?  Execution is the ability to get things done and to drive results, even in the face of unexpected obstacles.  It is the ability to make decisions and solve problems that ultimately result in achieving strategic goals.  Strategic goals focus activities on success, but single-minded attention to flawless day-to-day execution is how success is achieved.