Mistake Bank Podcast #5 – Monica Gould of Strategic Consulting Partners

August 31st, 2010

Mistake bank logo#5 in our series of interviews with successful entrepreneurs in which they talk about the mistakes that helped shape their careers. Our guest is Monica Gould, who founded her business, Strategic Consulting Partners, after a successful career at MCI, and has sustained it for more than 10 years.

Monica, like so many of the entrepreneurs I’ve talked to, is very candid and self-reflective, and willing to talk about mistakes, to teach others and to ensure they themselves learn from them. I was struck by Monica’s sense of humor when she discussed the cobbler’s kids dilemma – while she helped companies improve their planning she tended to neglect planning for her own business (something I’ve experienced myself). I’m sure you’ll enjoy the interview.

Monica Gould podcast (31:24)

Content:

0:30 How she got started
11:10 An early mistake…the “we can help you with anything” brand
13:30 Consequences of a consultant losing focus
15:15 A more recent mistake: how long to try to break into a new market?
17:10 “Time is your biggest commodity”
18:50 A difficult situation with a subcontractor
23:45 A final thought on planning…

(audio content copyright 2010 John Caddell)

If you are interested in contacting Monica , please visit her website.

Previous podcasts can be found here.

Silicon Pasture Podcast #1 – Jason Kichline of OnSong

August 10th, 2010

In our inaugural Silicon Pasture podcast, we talk to Harrisburg-based Jason Kichline, developer of the OnSong iPad application that helps musicians and bands manage chordsheets.

My favorite part of the interview is when Jason, when asked why he was able to succeed in building his own business developing websites, credited good timing rather than his own brilliance. Good for you, Jason!

Highlights:
0:35 How he got started
2:45 How can you build a sustainable business out of a hobby?
4:07 The idea for OnSong
7:05 What the app does
9:13 What’s happened since the product’s release
12:30 Marketing OnSong
14:45 On new computing form factors

You can download the podcast here: Silicon Pasture Podcast – Jason Kichline.

[A collection of other Silicon Pasture posts.]

Theme music: “Odyssey” by Woolfy.

Randy Nelson of Pixar: Collaboration is like improv theater

August 10th, 2010

I learned of this video of Randy Nelson, dean of Pixar University, from Garr Reynolds’ Presentation Zen blog. Garr points out many interesting facets of Randy’s presentation, but I was struck by the initial message in the talk, and I’ve been thinking about it a lot the past few days.

Randy says this (all in the first 1:30 of the video):

Two core principles of improv have always guided us. The first is: Accept every offer. If an improviser says to you, “It’s raining a lot in here today,” you don’t say, “Raining in here?” You say, “That’s why they gave us umbrellas.” It’s an offer. You don’t know where it’s going to go, but the guarantee you have: if you don’t accept that offer, it’s going nowhere. You’ve got a sure thing on the one hand: dead end. Or you have a possibility on the other.

The other principle is: make your partner look good. What a great thing. So you know on a team that anything anybody says to you, you’re going to get a chance to “plus” that, you’re going to get a chance to have that be on the table. And they’re going to try to make you look good, not make you look bad.

At Pixar, what we mean by “plussing” is this. You take a piece of work, you take something you’re working on collaboratively, and when it’s given to you, you don’t judge it. You don’t go, “Oooh, this is pretty good; this is what I’m going to do to make it better.” Or, “This isn’t so good, this is what I’m going to do to fix it.” You say: “Here is where I’m starting. What can I do with this? …How do I accept the offer and make my partner look good?”

This made me think of how I learned to collaborate, starting in engineering school and continuing as a programmer and software designer. Collaboration in that environment meant, largely, fighting over ideas. This is how we should design a data structure. We should design a home screen this way. It was a combination of thinking and persuasion. Whoever had a good idea and could persuade the others in the group of its merits, would win the argument.

In my mind, these weren’t destructive arguments. They were, in fact, thrilling. You won some, you lost some, and the results were often really cool.

But when I moved into management this method didn’t work so well. It doesn’t help quiet people contribute to ideas. It’s a peer method and doesn’t work well in a hierarchy. It can divide people. It can be intimidating.

So I’ve been thinking about how to apply the improv model to more situations. When someone comes to me with an idea, how can I, rather than dismissing it initially (which I am prone to do), “accept the offer”? And how can I use my capabilities, not to critique the idea, but instead to make my partner look good?

What is a Foursquare friend?

August 3rd, 2010

foursquareFoursquare is the latest Big Thing in the social space, following in the footsteps of Friendster (RIP), Myspace (nearly RIP), Facebook (world’s third largest nation) and Twitter. If you’re not familiar with it, Foursquare is a mobile application that uses GPS to know where you are and allows you to “check in” at places you visit. Friends can learn from the application where you are and on the spur of the moment decide to pay you a visit. (Is it obvious that the application started with young people in New York?)

Like all these emergent social apps, people developed uses for Foursquare’s features; for example, as a log of where your travels take you over the course of a day/week/month. And the founders built in a competitive element. If you visit a place more than anyone else, you become Mayor! (Voila–a hook for sponsors. Become mayor of Starbucks = a free coffee. Note that great bartenders have been doing this for ages without the aid of GPS or the World Wide Web.)

I’ve been using Foursquare for the past couple of months, and have learned a lot about myself. One friend remarked, “I know you travel a lot, but you must really travel A LOT to become mayor of the airport!”

And the application is interesting. I wouldn’t say that it’s compelling (yet), and it’s utterly mysterious to many (you check in? what does that mean? why would I do that?). But the combination of mobility, location awareness and social apps will be the next big thing, I’d wager.

With all that, it’s time to get into my real dilemma: who should be my friends on this service?

With Facebook, it’s fairly straightforward. For me, that’s friends and family. If I don’t know you, or don’t like you, you are not my friend on Facebook (and I’m sure the reverse is true).

On LinkedIn, if we worked together, or met in a business context, or were introduced by an associate, you’re in. I will link to you. (People who advertise “I accept all invitations,” however, are banned from my network.)

On Twitter, it’s easy. If you have something interesting to say, I’ll follow you. If you follow me and aren’t a creepozoid or shilling something, I’ll follow you too.

On Foursquare, the friend decision is more difficult. At first glance, given the location aspect, I would want it to be more exclusive than Facebook (if I want to advertise my location to the general public, I can easily check the Twitter box during a Foursquare check-in). Yet the service’s users (despite the hype) are still pretty thinly spread, especially where I live. As a result, I’m inclined to friend local folks whom I don’t know very well, but who are also trying to figure out this Foursquare thing; fellow travelers, as it were.

But a bigger dilemma now is the unsolicited friend request. I’ve seen this message several times this week: “‘So and So’ wants to be your friend on Foursquare. Check out his profile:…”

Who is “So and So”? I don’t know, so I check out his profile. And, unfortunately, there’s not too much there either. A screen name, a list of check-ins, and that’s about it. No biography. No information, a la Facebook or LinkedIn, of how you might be connected to this person. Which lack of information, I suppose, makes the decision easier: No.

I don’t really know whom Foursquare expects you to be friends with. Certainly, their friend requests make it difficult to decide to have an expansive network. Or, alternately, they make it easy to have a small network. And perhaps that’s a good thing.

[I'd love to hear others' thoughts of Foursquare friends. Fire away in the comments. Thanks!]

Silicon Pasture Report – Refurbished is the New New

August 2nd, 2010

When our Wii tumbled off its rack the other week and crashed to the floor, subsequently losing the ability to read game disks, it wasn’t only my kids’ hearts that sank. Mine did as well at the thought of paying another $200 to replace it.

As it turns out, you can ship your broken system to Nintendo (actually, you send it to a subcontractor), who will fix it and send it back for $85, including shipping.

It seems like only a few years ago that electronics were disposable. They were cheap to buy and hard to repair. Things have changed a lot. Refurbished is the new “new.” My MacBook Pro is a refurb. Our workhorse of a coffeemaker was fixed under a program similar to the Wii’s. If your cellphone breaks under warranty, the replacement will be a refurb.

There’s a company here in Silicon Pasture (Harrisburg-Lancaster-York, PA) called recoupIT, and it collects unused, returned or excess consumer electronics, fixes them up, and resells them through its website to people around the country. [People familiar with this area's thriftiness would not be surprised that a powerhouse vendor of reconditioned electronics is headquartered here.]

Besides offering great deals on cool electronics, recoupIT provides a service to manufacturers, retailers and large purchasers, who end up collecting piles of product without a good process for dealing with it. recoupIT manages the entire asset recovery process: it takes a company’s surplus equipment, repairs and sells the usable product, and recycles the rest. It’s not only good business, but good for the environment.

According to the Central Pennsylvania Business Journal, recoupIT’s revenues approach $7MM annually. That’s a lot of green.

[Disclosure: I know the owners of recoupIT. Our kids went to preschool together. Everyone is connected here in Silicon Pasture!]

Other Silicon Pasture Posts:
Charlie Crystle’s Focus
What In Hell Is Collectivus?
Report from Silicon Pasture 2

From the Mistake Bank: “The Power of Positive Failure”

July 29th, 2010

Mistake bank logoThere is enough of a chorus of ideas (such as this one from Nancy White referencing Chris Corrigan who points to Alexander Kjerulf) around learning from mistakes and failures that I feel we may be on the cusp of an actual movement here. Most recently, David Simms posted “The Power of Positive Failure” on the HBR Conversation blog.

Simms recounts an experience hosting a panel in which he asked the speakers to relate stories of failures they suffered through. He was amazed at how willing the panelists were to discuss their mistakes, and how much they had learned as a result. He also encourages readers to be more willing to share their own mistakes. I heartily agree.

By the way, when reading “The Power of Positive Failure,” be sure to read the comments. There are some great mistake stories there. And if you want to read/hear/see more mistake stories, visit The Mistake Bank’s temporary home (http://mistakebank.com), which will bring up a set of posts from my work in gathering and learning from mistake stories. (You’ll find plenty of my own stories in there, believe me.)

Related Posts:
A Mistake Bank story from Don McFadden – due diligence in real estate

Mistake Bank Podcast #4 – Donald McFadden on Due Diligence in a Real-Estate Transaction

July 28th, 2010

Continuing our look at successful entrepreneurs and the mistakes that shaped their careers. This video was part of the Mistake Bank Ning site, and I was reminded of it as we toured the city of Wilkes-Barre, PA, last weekend. My wife was driving, and from time to time she’d point to a building and say, “My dad owned that one.”

This story was from the beginning of my father-in-law’s real-estate investment career, and to me says a lot about due diligence. I’ve heard many entrepreneur mistake stories where inadequate due-diligence was at the heart of the issue. On the other hand, diving into a deal without having everything figured out, and then making it work, eventually brought these business owners to another level of success.

So: mistake or bold move? Discuss.

Don McFadden on Due Diligence in a Real Estate Transaction – a Mistake Bank story from John Caddell on Vimeo.

Prior Mistake Bank podcasts:
Tim Berry of Palo Alto Software
Charlie Crystle of Chilisoft
John Bliss of BlissPR

Nice is nice, but customer service means solving problems, first and foremost

July 26th, 2010

I’ve been immersed in studying customer service calls for more than a year now. I’ve gotten very attuned to how customer service representatives handle requests, and I’ve drawn one major conclusion: nice is nice, but effective beats it hands down.

I have to confess that I hadn’t crystallized this thought until I read “Stop Trying to Delight Your Customers,” by Matthew Dixon, Kathy Freeman, and Nicholas Toman, in the July-August Harvard Business Review. This perceptive article is full of clear thinking and good ideas about what good customer service (both web self-service and telephone service) means.

Most importantly, the authors reject the idea of delighting customers in favor of effectively solving customers’ problems. They underline this theme by referencing their study (through the Corporate Executive Board) showing that customers’ loyalty was only slightly positively affected by great customer service, while disloyalty was heavily influenced by poor service. In other words, you can’t create (too much) loyalty by over-the-top service, but you can easily drive customers away with lousy service.

This helps explain something I’ve witnessed among companies that take intense pride in their customer service: what seems like great service from the rep’s point of view may not be great service from the customer’s point of view. One example is the question of whether or not to transfer the call. When a customer has a technical problem, it’s ideal if the first person who answers the phone can solve the problem. However, a timely transfer to a tech is far preferable to a rep spending countless minutes researching knowledge bases to try to learn about an unfamiliar issue.

Another area Dixon, Freeman and Toman focus on is on preventing downstream calls. As they explain, this is not the same as first call resolution (FCR), because it’s possible to resolve a customer’s issue (thereby achieving FCR) but not head off a forseeable next call. An example: helping a customer find and download a wild new mobile app may answer the customer’s specific question, but if the rep explains how to use the app, the customer won’t need to call back.

Stop Trying…” is well worth reading in full. It provides a fresh look at customer service and helps remind us (me) that great customer service is about solving problems. If only the CEO of a certain broadband service provider, which I called no fewer than four times to solve a critical service interruption and which offered an appointment 5 days later as a solution, had read it. [Mr. Roberts, that means you.]

Silicon Pasture update: Treff’s 10 reasons

July 23rd, 2010

Treff LaPlante of WorkXpress, a Carlisle-based software and IT services company, knows what it is to start a high-tech business in Central Pennsylvania. He’s written a guest post for the Central Pennsylvania Business Journal’s Gadget Cube (the author of which, Andréa Maria Cecil, is also a great friend to the region’s entrepreneurs) listing “10 Great Reasons To Start a Software Company in Central PA.”

If you’re local to our area, and you’ve got an idea for a great company or product, read Treff’s post for some helpful tips. And join the New Tech Meetup of Central PA to get to know some fellow travelers.

[Silicon Pasture is our partially tongue-in-cheek term to describe the tech startup environment in the Harrisburg-Lancaster-York, PA, area, known more for candy, snack foods and dairy products than startups. But perhaps that will change. You can read more Silicon Pasture posts here.]

Stop picking on the mailroom guy: the empty strategy of squeezing the bottom of the ladder

July 22nd, 2010

A guy I used to work with left an all-hands meeting one day. The company had just announced a layoff (it was long enough ago that this was still stunning, not an everyday occurrence like it is now). He turned to me and said, “They always get rid of the mailroom guy.”

What he meant was that the burden of whatever circumstances caused the company to cut back fell on the lowest-paid employees. And whatever mistakes the mailroom guy had made, they hadn’t caused the company’s distress.

Lots has changed since that meeting, but the “mailroom guy” syndrome hasn’t. Companies still press down on the lowest-level employees to try to make themselves more competitive. This has led to reduced benefits, reengineering, offshoring, etc., etc. Generations of management consultants made partner by cutting costs at the bottom level. (It didn’t help consultants’ relationships to recommend cost cuts at the executive levels, did it?)

Finally, there is a dissenting view emerging in the business literature. Jody Heymann’s recent book “Profit at the Bottom of the Ladder: Creating Value by Investing in Your Workforce” discusses case studies of companies on three continents that have been successful while providing superior benefits and wages to their ground-floor staff. A recent New York Times article profiles a Dominican garment factory that pays a living wage to their employees and advertises that fact on the goods they sell.

Finally, Harvard Business School professor Zeynep Ton has just published a case study of the Spanish retailer Mercadona. According to Ton,

Mercadona offers the lowest prices in Spain, and its operational performance exceeds that of comparable Spanish and foreign chains. In 2008, Mercadona’s sales per square foot was 60 percent higher than that of France’s giant Carrefour, and more than twice that of an average U.S. supermarket. Sales per employee were 18 percent higher than that of other Spanish supermarkets that disclosed financial information that year and more than 50 percent higher than U.S. supermarkets. By all measures, its inventory productivity is much higher than that of its competitors….

For Mercadona, investment in employees is part and parcel of process and product improvement. In 2008, the chain invested four weeks of training time and €5,000 for each new store employee. “In the United States,” Ton points out, “the norm is only seven hours, and the difference shows.”

For example, Mercadona cross-trains employees so their productivity is not tied to store traffic. Cleaners can work the cash registers during busy periods, and cashiers can shelve products during downtime. Departmental specialists can assist customers during busy periods and order merchandise and arrange their sections during slack hours.

Much of the value proposition around investing more in ground-level employees is the benefit of lower turnover that results from better pay, benefits and working conditions. But better trained employees that have more flexible work roles improve efficiency as well.

The strategy of squeezing every last cent out of the workforce has reached the end of the road. Perhaps it’s time to explore a different approach. Stop picking on the mailroom guy.

Related posts:
A New/Old Idea: Pay People for Producing More
To Motivate Front-Line Employees, Use Their Insights