Information Ain't Power Anymore

The phrase information is power has long been used to explain political manoeuvres in public life and in businesses. Generations have striven to acquire knowledge and thereby rise up the food chain.
I would suggest that with the advent of Google and more recently mobile devices like the iPhone, information and therefore knowledge on virtually any subject is available to anyone, anyplace anytime.
So if knowledge is no longer the factor that differentiates us then what is?
The answer as I see it, is time, or more precisely our lack of it. It shouldn't be that way because most of us subscribe to more supposedly time saving devices than our parents ever did. Yet we work longer hours, commute further and proudly claim to be "sooo busy"
Strangely this must mean that the very busy are at a distinct disadvantage. When do they find the time and energy to think creatively, research new opportunities and tap into the infinite knowledge library that is just a click away?
More importantly is our busyness and connectedness fooling us into believing we are establishing and maintaining deep and meaningful relationships when really we are just developing relationships a mile wide and an inch deep.
What if the thing that keeps us busy stopped? Would our lives still have meaning?
Each minute of each day we are free to choose how we use our time, its more valuable than ever, let's not waste it.

Break the rules

When I was young I instinctively believed I knew better and would always look for another way of doing anything that was asked of me.

As I've grown older I've learnt to conform and that very often the tried and tested way is the best.

The trouble is, if none of us ever challenge convention the world can't progress, innovation is the mother of invention and invention is the essence of enterprise. Dyson, Lego and innocent wouldn't exist if their founders hadn't been prepared to defy convention.

Entrepreneurs are rule breakers and if we conform too much we stifle the creativity that drives us. Age does bring wisdom but it can also take away the bravery that we need if we are to stand out from the masses and make a difference.

Fairtrade - Fad or Future?

Is Fairtrade a Phase or the Future?

In recent years, like most professionals with a young family, I’ve found myself becoming not so much a follower of fashion, as a follower of fairness. As a family we do our utmost to fill our shopping basket with fairly traded coffee and ethical chocolate, alongside all of the organic fruit and free range eggs.

As the recession bites it’s tempting to put the altruism to one side and refocus on price as many consumers around Europe are reportably doing. Does this spell the end for fashionable Fairtrade? Or do ethical brands have more to offer than a label that says ‘buy me and be a better person.’

The sudden rise in popularity of these obscure, premium priced products certainly hasn’t escaped the notice of the multi-nationals, many of whom have been keen to add a friendly faced brand to their balance sheet. First, those quirky American hippies Ben & Jerry sold out to Unilever, then Body Shop submitted itself to L’Oreal, later, in the UK, organic chocolate pioneers Green and Blacks were acquired by cocoa giant Cadbury and earlier this year the three college friends that founded smoothie pioneer innocent, were ‘guilty’ of inviting Coke to join their party.

The innocent team claim, that they chose Coke over other suitors, despite the businesses shaky human rights record because they liked the people they met and found them to be smart and honest. They also point out that the money came from Coke with no strings attached, while other potential investors wanted to take control or to limit innocent’s policy of donating 10% of profits to charity. Founder Richard Reed says
“We of course did a boat load of due diligence, it’s the single biggest decision we’ve had to make over the last ten years. We looked into all of the accusations, we spoke to a wide variety of different people and we got extremely comfortable ourselves, that it (Coca-Cola) is a decent business, that the people in it are decent folk and that the company, overall, is a decent company.”

So in this case at least it appears that the corporate giant behaved with integrity. I’d venture that Coca Cola’s motivation for investing in innocent was about far more that getting a return on the £30m invested, they also wanted to understand how ethics can be good business. By any measure innocent is a very successful enterprise, going from an idea and just £500 worth of fruit to a £100m FMCG business in just 7 years is a phenomenal achievement that even a mega brand like Coke could learn from. Especially, if that commercial success can be achieved with a conscience.

Like all listed businesses, The Coca-Cola Company is looking for ways to match it’s Corporate Social Responsibility statements with actions. Charitable donations and allowing staff to work in the community are a gesture at best that has little impact on the bottom line. Whereas doing business the ‘innocent way’ is perhaps, the very essence of entrepreneurship.

It’s possible that Coke have predicted that in future their great size may be a disadvantage. Post recession, consumers will tend towards smaller businesses they can trust, that wear their values on their sleeve, not carefully scripted into a policy statement. In a world in which a Google search often tells a different story than the official marketing, small is beautiful and big is risky. Maybe the meek will inherit the earth.

The Law of Lettuce

Starfish, lemons and numerous other animals, vegetables and minerals have found their way into management laws and principles, in recent years.

So I thought it was about time that I came up with one of my own, the Law of Lettuce.
This idea came to me as I threw away yet another unopened bag of salad leaves, as I do most weeks, typically about 4 days after I've paid £2 for the bag of once crispy green leaves. Some weeks we get as many as 2 portions of salad from our 'washed and ready to eat' lettuce before it turns brown at the edges and is laid to rest in the compost heap, though all too often it's wilted long before we even get to it.
As I went back to the fridge I found that someone had kindly left us a whole iceberg lettuce which I was able to put to good use in that night's salad. And the next night's and the one after that and another several days later. The iceberg lettuce not only produced more portions than the bag, it lasted three times as long, yet it cost a fraction of the price of the bagged rocket we'd come to rely upon.
The Law of Lettuce was born. In business and life we waste vast amounts of money on superfluous goods and services, which we mistakenly believe are essential when less expensive and better options are ignored, simply because they feel a bit old fashioned or drab.

As I consider where the lettuce is in my business, items like expensive lawyers, taxi fares and air conditioning fall into the 'bagged rocket' category whilst common sense, walking and working barefoot could be classed as the icebergs.

Who needs banks

One of the first meetings an entrepreneur sets up, is with his bank manager to discuss opening a business account.

Many still believe this partnership between enterprise and bank is a marriage that will guide and support the business throughout its life.

My own experience and that of most business people suggests this hasn't been the case for some time and its getting worse. Service levels have dropped drastically over the last ten years while charges have risen and in some cases become quite devious. For instance Barclays allegedly deduct daily debits first, potentially putting the account into overdraft before applying credits.

If you are about to start a business, before you commit your future to a high street bank take a look at what else is on offer;

• PayPal is becoming an ever more trusted way of paying online


• The Post Office will accept cash deposits without charging whereas banks penalise those depositing cash


• Online accounts that don't offer branch access are often free, Investec is worth a look


• Funding a new venture shouldn't be difficult in an era when savings interest is so low. You just have to let potential investors know you are looking for funding. Write a micro business plan and email to people who might either invest or recommend you to a friend.

I'd far rather invest some of my money in an exciting start up than leave it in the hands of the banks.

Starfish are the future

I've been reminded of this book by two seperate people in the past 24 hours, I predict that 'decentralisation' will be the next buzz word. Of course true decentralisation is not about big organisations letting go a little, its really about individuals taking control by going it alone.

The Starfish and the Spider by Ori Brafman and Rod A. Beckstrom

If you cut off a spider's leg, it's crippled; if you cut off it's head, it dies. But if you cut off a starfish's leg it grows a new one, and the old leg can grow into an entirely new starfish.

Some organisations are just as decentralised as starfish, with no control centre or grand strategy. Think of craigslist and the original Napster, run totally by their own customers. Or Alcoholics Anonymous, which has thrived for decades as a loose network of small groups. Or even al Qaeda, which is so hard to destroy because its cells function independently.

"The Starfish and the Spider", based on groundbreaking research into decentralised organisations, proves that this type of leadership is primed to change the world. Major companies like eBay, IBM, Sun, and GE are starting to decentralise, with great results. Decentralisation isn't easy for people who are used to the classic chain of command organisation. But as readers will learn through this book's fascinating stories - ranging from the music business to geopolitics - it can be a very dangerous trend to ignore.

Define success

Tomorrow I'm going to have some time to reflect, no distractions from IT, colleagues or kids, as I'll be laying in a hospital bed recovering from a minor operation.

Time to reflect is a rare luxury but one worth working for. For much of my working life I've been surrounded by people striving to be successful and I've been one of them, until just a few years ago I was asked;

"How do you define success?"

Despite spending every waking hour apparently working towards it, I couldn't put into words what success meant to me.

Thankfully that question got me thinking about what success looked like to me not just at the end of each day but also at the end of my life when I'm looking back on the deals I've done, money I've earned and the friends I've made or lost.

So now I have a definition and its just three words, I'm not going to write them here because I've learned that what success means to me isn't necessarily 'success' to someone else, but if you are itching to know drop me a line via Twitter.

Work your Hobby

In the news yesterday morning I was reminded that by the time I reach 65, the retirement age will be beyond 70.

In the pub last night I tried my first pint of Hadham Gold, a beer created in our local micro brewery. Fellow drinkers told me that the brewer, who lives in our village, had always enjoyed making beer as a hobby, then a few years ago he decided to turn his hobby into his work. My guess is that he isn't the least bit concerned that he might have to keep working for another 5 or 10 years before retirement.

The same is true for numerous photographers, travel writers, wood workers, cooks ... the list is endless.

Maybe we would be happier working for less money but more reward doing the things we love so that our working life is just as much fun as our retirement.

You are not alone

If you are itching to leave your job and start something new a survey published today by the Chartered Institute for Personnel Development finds that 22% of employees are looking to change jobs as soon as the opportunity arises.

Trust in large firms and the management of these organisations is at an all time low resulting from badly handled redundancies and questionable corporate morals. At the same time applications to ethical companies and charities have never been stronger.

What's the point

Do you know your purpose?


Being in business implies a desire to make money but making money is not an end in itself.


For some the goal is to make enough money to buy a yacht, fund their children's education or to have the time to travel.

These personal goals can be quite motivating for their owners but tend not to inspire others. The employees who's commitment and dedication will ultimately determine whether the goal is achieved also need a 'cause' to work for.

An increasing number of entrepreneurs have instead set their businesses a purpose which goes beyond making a profit to making the world a better place;


"We sure aren't perfect, but we're trying to do the right thing.
It might make us sound a bit like a Miss World contestant, but we want to leave things a little bit better than we find them. We strive to do business in a more enlightened way, where we take responsibility for the impact of our business on society and the environment, and move these impacts from negative to neutral, or better still, positive. It’s part of our quest to become a truly sustainable business, where we have a net positive effect on the wonderful world around us. "
http://www.innocentdrinks.co.uk/


"Why are we in business? For us it is not as simple to make a profit. Like any company we require a profit to stay in business. But it is not the reason we are in business. The thing that has not changed from day one is the desire to make people think about the world we live in. This is, and always will be, why we are in business."
http://www.howies.co.uk/


"Wealth creation, for distribution.
We want to see our profits and resources used to support a range of community and social projects as well as strengthen our business."
http://www.freshgroup.co.uk/


If you are starting a business make time to work out your purpose, it's the single thing that will motivate your future staff more than pay and conditions.

Becoming the Trusted Advisor

As many leave employment to become their own boss their first cheque will probably be earned through some form of consultancy.

While it's true that we use consultants for their specialist knowledge or competence, of equal importance is a consultant's character.


Those who excel as consultants very often spend time working on projects beyond their original brief. They are so trusted by their clients that they are regularly asked to tackle additional assignments, thereby significantly increasing their earnings per client.

So how do we build that trust? Contrary to what some believe, trust cannot be earned by good behaviour alone. In fact it comes from a combination of factors, all supported, or undermined by our level of self interest - the higher our self interest the less we are trusted.

This formula adapted from Maister, Green and Galliford's trust equation in The Trusted Advisor, Free Press 2001 illustrates the difference between character and competence

Relationship, Credibility, Dependability

Trustworthiness = --------------------------------------------------------------
Self-Interest

If we are to become trusted advisers then we must be willing to put our own agenda to one side.

Busy Fools

I thought Blackberrys, Microsoft Outlook and Open Plan Offices were all supposed to save us time and make us more efficient. Yet most of the middle managers I come across seem to be busier, more stressed and consequently more indecisive than ever before.

A packed diary might fool some into thinking we are successful but in truth it simply says we have no time to seize new opportunities, think creatively or sit down with a colleague in need.

Here are a few of the tricks I’ve picked up from those that seem to have got the balance right;

• Be clear about your priorities – know what your role requires of you and where you want your career to go, eliminate any activity that doesn’t relate directly to these objectives


• Avoid committees – they rarely make good decisions, they spend far too much time discussing minutiae and they steal time from your diary way into the future


• Learn how to close a phone call – with a few well chosen phrases. My favourite is ‘don’t let me keep you any longer’ This way you can politely terminate the call without ending the relationship


• Don’t get comfortable – some of my most productive meetings have been conducted standing up and the worst, in unventilated meeting rooms in comfortable chairs


• Break habits – just because meetings normally start at 10am and last for 60 minutes in the conference room it doesn’t mean that’s the right formula. Try different durations, locations and times depending on the urgency and desired outcome.


• Say no – not ‘I’ll consider’ it or ‘Come back to me, next week’ Busy fools allow their mouths to operate independently to their brain, just say what you mean.


• Ignore email – at the very start of the day, begin by mapping out what you really need to achieve rather than allowing your Inbox to dictate your day.


• Go on a course – If Microsoft Outlook or similar handles your email and diary then set aside half a day to improve your knowledge of its functionality and the settings you use. Most people don’t use these systems efficiently and an hour invested in training could save you days over the next year.


• Take action – Reply, file or delete every email and letter on first sight, don’t let them loiter around, take action immediately.


• Tell the world – how you operate, if you find it best to check emails at defined times, say before 10am and after 4pm include a note to that effect in your signature. Do likewise with ‘out of office’ and voicemail.
  
  In the future, there will be yet more gadgets that need our attention; managers must take back control so that the technology doesn’t manage them.
  

Big is Bust

I used to think, like many of our corporate leaders that big was beautiful. Words like grow, acquire and expand never failed to feature prominently in strategic plans.

Now industry giants like General Motors fail while Reva makers of the G Wiz electric car, foresee a 3 to 4 fold increase in production over the coming year. In air travel British Airways is close to bankruptcy having lost £148 million in three months alongside mammoth pension liabilities. In the same industry newer, smaller and more nimble operators are opening new routes.

Contrary to popular belief, being big is no longer a recipe for success. In fact, in the current trading conditions for many, its a recipe for disaster. Smaller businesses tend to;

• have better internal communication


• are more trusted by their clients


• command greater loyalty from staff


• foster a spirit of team work


• innovate more quickly


• adapt to change earlier

All characteristics required to survive the recession. A recession that, as a result of redundancy is creating a host of new start ups. Independent businesses owned by the guy or girl that does the work, with no need to answer to shareholders. Motivated simply by a heartfelt commitment to serve the customer - isn't that a better way to do business?

Traders and Toilers

You are probably very good at your job, so in theory you could run a successful business doing what you already do well, or could you?

It seems to me that the most successful entrepreneurs are rarely highly skilled at making the product their business provides. Richard Branson probably can't fly an Airbus but that doesn't preclude him from being a very successful owner of an airline.

As one considers the leap from employment to self employment its important to assess whether we have the talent required to grow a business. Here are a few questions which might indicate the level your entrepreneurial instinct;

What did you trade at school?
It might have been pens, records or books, it doesn't matter what it was. The fact that at an early age you were trading is a sure sign you'll be a success in business.

Do you advertise and sell your old cars or part exchange?
Part exchange is the easier option but its also a sign that you'd rather take the easier route than squeeze out the extra profit that's essential for a business to succeed.

Without checking, write down how much cash you have on you now.
One of the wisest sayings in business is "Turnover is vanity, profit is sanity but CASH is king"
If a business can control it's cash it wont fail, this means not just knowing what's in the bank at any given moment its also about being able to ask for the cheque without embarrassment or hesitation.

So if you are about to make what could be the biggest decision of your life take a moment to assess whether you really have what it takes. If you have doubts don't give up, get input from others and look for a partner that balances your skill set.

Time to share

Perhaps its the recession or maybe there's an awakening that there could be more to life than serving a corporate god for the rest of our waking lives.

Over the past few weeks several friends and clients have asked to 'have a word' The 'words' have all been similar; change, new, different. The sentiment is always the same, they want to leave the 9 till 5 and start their own business.

Apparently most recessions breed a flurry of new businesses as people choose to set up on their own rather than search for a new job. This one looks to be no different. Unlike the early 90s when I made the leap some factors are easier now.

There's no need for premises or even a business phone line, simply get a decent Blackberry or iPhone and your office goes wherever you go. We all do our own typing anyway so you don't need to hire administrative support at the outset. Advertising is most effective online and its immediate, so there's no need to time your start up to coincide with the annual publication of the Yellow Pages.

Most importantly of all, size really doesn't matter! Most clients whether they be consumers or corporates now know that its the person that delivers service not the logo. If you can be trusted to deliver what you are selling you are well on your way.