All in Strategy
In his first letter to shareholders, Amazon CEO, Andy Jassy, wrote:
“In every business we pursue, we’re constantly experimenting and inventing. We’re divinely discontented with customer experiences, whether they’re our own or not. We believe these customer experiences can always be better, and we strive to make customers’ lives better and easier every day.
There's an allure to the grand strategy, the flourish and ambition behind the work we do. We love the exciting, glamorous and sexy parts, because that gets noticed.
And while those aspects of our work are indeed important, of far more importance is the more detailed, granular executional work, as I discuss in today's episode.
Rivalries in sport and in business are fueling mechanisms.
They spur us on to stay alert, work harder and innovate more deeply, to ensure we stay ahead of our competition. More often than not, that’s defined as one or two specific competitors. In that respect, competitive rivalries are a good thing - they keep us focused on the end goal and make us better. The greatest rivalries are the stuff of legend.
Chris Brogan, a writer whose thinking I really admire, recently wrote about the idea of freedom and the struggle so many of us face between our decision to lead (which requires venturing into the unknown) or be led (where we’re told what we should be doing), especially when it comes to our work.
To illustrate this idea, he included in his most recent email (which I’d highly recommend you subscribe to), a quote from Loki, from the Marvel Comic Book Universe, as he subjugates a crowd of people:
The idea of balance - and its importance - is discussed by all and sundry as being key to a healthy life. And it is - in the long term.
But in the short term? Balance doesn't move you forward, and it doesn't help you achieve greatness, as I discuss in today's podcast.
In the list of priorities of any organization, and specifically the management team, keeping everyone happy cannot be high up there. Any mission and its related strategy will - if done with concerted intent, structured focus and ability to execute in mind - polarize. That is, it will have its proponents and its detractors.
And if you, as a leader, have done your homework and have determined that that strategy is fit for purpose and the best path forward, then bringing everyone along cannot be a priority.
One of the hardest but most valuable abilities we can develop is the ability to maintain strength in our convictions, our beliefs and our vision. This is true in all walks of life, but particularly so where you’ve been tasked with achieving a specific objective or leading a team towards a particular end goal.
In that quest, you are called upon to define the specific path, chart out how best to navigate it, and then, as you embark on the journey, bring others with you.
A lack of a brand is a forcing mechanism.
There’s nothing to hide behind, nothing to protect you or carry you in a conversation.
A lack of brand requires you to be crystal clear about what you have to offer and what you represent. It forces you to do the work, to the point that someone decides to engage with you - because the value you offer compels that engagement.
There’s an adrenaline rush, a state of heightened performance, that comes with growth, when things are going well. It’s a positive state because it’s a sign that others value what we’re doing and, by definition, in increasing numbers.
All of us want that kind of growth for our enterprises (and ourselves) because it is a sign that things are working. That kind of growth motivates the organization and pushes us to believe, commit ourselves and achieve more. All good things.
The success of whatever we do depends, without question, on our people. It's a cliche but it's true.
So it's important when formulating our teams, to make sure we have the the right "ingredients" in place - not only technically but philosophically. The wrong ingredients will ruin the entire dish, which is the topic of today's episode.
I read a tweet the other day about a founder who was worried that his company was growing at “only” 25% a year and, as a result, felt he needed to get bought.
Now, to any objective observer, if you were to set up a business that returned 25% top line growth year over year, that would be considered, without question, a successful enterprise. I mean, we’ve all heard that stat about how 80% of new businesses fail within the first year. So then to not only get past that but to also flourish and grow, is a heck of an achievement.
Near the end of Crypto.com’s SuperBowl commercial earlier this year, in which Lebron James goes back in time to talk to his 17 year old self, the younger Lebron asks his future self what’s most on his mind:
“Is the hype too much? Am I ready?”
He’s looking for reassurance, of course, some certainty that the choices he’s about to make, the risks he’s about to take, are the right ones. Valid concerns for a 17 year old.
When we’re presented with change of any material scale, it’s not uncommon for us to hesitate, to be concerned.
We wonder what the change will mean for us, how our work will be altered, what ‘price’ we’ll have to pay.
All natural and normal reactions, because change can be scary and overwhelming.
There’s a passage in Ayn Rand’s book, The Fountainhead, where the central character, Howard Roark, lays out his personal rules for Architecture. He says:
"Here are my rules: what can be done with one substance must never be done with another. No two materials are alike. No two sites on earth are alike.
A while ago, a good friend of mine sold his company in what was regarded by all parties as a wildly successful outcome. In a little over a decade, he had taken it from an idea to a material, profitable entity, one that was valued enough to be bought out by a major industry player.
From the outside looking in, then, every decision he ever made looked to be validated…
One of the ways that my firm helps organizations is by forecasting commodity prices. That is, we study specific commodities (e.g. High Density Polyethylene) and, using both quantitative models as well as qualitative analysis, provide a view as to what will happen to the prices of those commodities 6 to 12 months out. It’s not a perfect science but it’s helpful in driving better decision making.
Every so often, I’ll have someone ask us for a detailed 24 month forecast. And every time, my answer is the same.
Nature loads the gun, nurture pulls the trigger. Or genes load the gun, lifestyle pulls the trigger.
I believe this phrase (using “genes” and “lifestyle” instead of “nature” and “nurture”) was first used in a research paper about obesity, but it applies to so many aspects of our lives. It speaks to the complexity of life, of how we might be oriented and what we might be able to influence.
From a young age, we're programmed with the idea that we'll grow up to get a job and do our work. But we don't often consider what that means.
Why are we doing what we're doing? What are we trying to achieve? As I discuss in this episode, it has to be about more than the money - whose mission are we serving?
In my last post, I wrote that, instead of focusing on having more choice, we should focus on having more confidence in our choice.
This is harder than it sounds, of course, as it demands that we do the work to understand our values, our decision criteria and what it is we’re looking for, as we make decisions about the work we do. If we know what we want, then we’ll make better, more confident decisions.
In business environments, surprises are not a good thing, because the main thing we want is predictability.
And the only way we can ensure predictability is for us to do the work necessary. This means both listening and communicating much more than we do, as I discuss in today's episode.
