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Relying on Others

This morning it was cold when I got up. I turned up the thermostat and nothing happened, so I got a hammer and climbed up into our attic. Using my phone’s light to see, I stepped over HVAC ductwork and under beams to get to the furnace’s panel. I turned off the power and then I hit the furnace a couple times with the hammer. I flipped it back on and waited, crouching in the freezing dark. It cycled up, the pilot flame lit, and then after a moment the gas fired and the furnace started to heat our house.

This morning started the same as four of my last seven days.

I installed the furnace a couple of years ago. I read a Mr. Money Mustache blog where he replaced a furnace in around a day. It took me around three and a half months working weekends to learn HVAC and put it in.

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Winners Get to Win, Losers Get to Learn

A friend of mine is going through some hard times in his business. Within six weeks, a key manager that he invested in left for another company. Seven clients in a declining industry cancelled their plans and dropped his monthly revenue by more than a hundred thousand dollars.

It sucks.

We’ve all experienced some form of this. Either through our choices, misfortune, or a combination of the two we experience challenge as a result of losing.

Winning is great. Winners are rewarded. People love winners and winning tends to accumulate advantages.

Losing is great too. Losing is the beginning of opportunity, learning, and growth. While winning’s rewards are visible and immediate, losing’s rewards are internal and hidden by time.

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When Elevator Conversations Matter

I used to roll my eyes at elevator pitches. They seemed to be the verbal equivalent of business cards. People toil over the design, the byline, and the embossed fonts and the result is that they get tossed into the garbage with everyone else’s beautiful cards. Similarly, folks will spend hours workshopping the perfect pitch, but I’ve never heard of a single sale occurring in an elevator.

Yesterday, I was running registration for our local Rotary Club with a product manager for a SaaS company. It was still quiet, before Rotarians had started to arrive, and we were talking shop. He asked, “What does your company do?”

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What a CVP Tells You About You

A couple of weeks ago at the DCBKK conference, I attended a session on hosting virtual summits.

What struck me about the speaker was that they created excellent offers for every stakeholder in their virtual summits. There was a compelling reason for businesses to sponsor their virtual events, to present as a speaker, and to attend.

A clear and effective value proposition is fundamental, but it’s something that many of us (mea culpa) tend to gloss over.

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Plans, Financials, Management

At the DCBKK conference a couple of weeks ago, they closed out with a speaker that talked about turning around a SaaS company that was on the verge of bankruptcy. They were hired in as a CEO after seven other CEO’s had failed to fix things and were able to get everything back on track in a couple of years.

What struck me about the speech was that it was mostly about fundamentals:

  • Planning
  • Financial forecasting
  • Operational alignment
  • Management

These are things that we all think we know pretty well.

But the speaker focused on deeper levels of these fundamentals:

  • Detailed plans with three scenario cases for each stage of objective
  • Pro forma business cases in forecasting
  • Operational alignment using OKR’s, EOS, and financial metrics
  • Managing like an investor rather than an operator

One of my working theories is that excellence isn’t found in the esoteric and new, but rather it’s discovered at a deeper level of the familiar.

If you were to evaluate the fundamentals of your business, what categories would be under developed?


Featured images is Philosophia et septem artes liberales, the seven liberal arts. From the Hortus deliciarum of Herrad of Landsberg (12th century). The seven liberal arts established in ancient Greece were: astronomy, math, geometry, music, rhetoric, grammar, and logic. Used under public domain.

Marketing Credence Goods

I recently read “How Clients Buy,” a book on marketing consulting services. It was a good read, but I disagreed with the premises that they build their strategy upon. They begin by differentiating selling products from consulting and assert that consulting is fundamentally different and doesn’t behave according to normal market forces because it’s a “credence good.” This isn’t true and the misunderstanding leads to blind spots in pricing and marketing tactics.

The book quotes Asher Wolinksy, a professor at Northwestern to define credence goods:

“The term credence good refers to goods and services whose sellers are also experts who determine the customers’ needs. This feature is shared by medical and legal services and a wide variety of business services. In such markets, even when the success of performing the service is observable, customers often cannot determine the extent of the service that was needed and how much was actually performed.”

Asher wolinksy

To provide an example, if you’re like me and you know little about cars, mechanics are credence goods. I have no clue if I’m being charged appropriately, if work was done, or how to vet their work.

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Rubicons & Growth

I’ve long had a goal of leaving for a month and coming back with more money in our checking account than when I left.

After being out for a little more than two weeks I came back yesterday and that was the case. It wasn’t a month, but it was inline with the spirit of the goal. I didn’t know exactly where the revenue came from other than as a result of our operations. And, while I was gone, we hired a new team member and onboarded them without issue.

Yesterday, I wrote about identifying the edge of your capability. Understanding where that edge is provides intelligence about where to invest in growth.

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Shipwrecks & Discerning Edges

While in Thailand these last two weeks, I completed training on Nitrox and advanced wreck diving on a WW2 wreck.

In a wreck, you simultaneously have to monitor normal dive constraints along with the added challenges of low visibility in a constrained environment. I was managing my air, depth, no decompression time, my buoyancy, a dive light, and a spool of nylon line. The nylon line is for you to follow blindly out of the ship if someone accidentally “silts up” the dust in the wreck by kicking it with a fin. While you dive, you have to play it out and tie it off at regular intervals with specific techniques to avoid it creating other problems.

It’s like navigating a multi-level labyrinth in the dark, with a time limit, where you risk death if you lose track of what’s happening or don’t complete tasks correctly.

It’s really fun.

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Time Off

A couple of years ago, I took a month off and followed the changing autumn leaves along the length of Japan. I started in Sapporo and slowly made way to Fukuoka by train. It was an epic trip. Afterwards, I had an incredibly productive finish to the year.

When it comes to getting things done, I think we place too much of an emphasis on “time management” and not enough on “energy management.” A big piece of the energy puzzle is simply time off.

Which is what I’m going to be doing for the next couple of weeks. I’m heading to DCBKK in Bangkok and then to an island in the Gulf of Thailand for some diving and, if the weather cooperates, sailing and climbing.

If you’re at DCBKK, give me a holler. Otherwise, enjoy the wonderful autumn and I’ll be back at the desk in November.


Featured image is Religious melancholia and convalescence used under public domain.

Sideways

“If you want advice, ask for money. If you want money, ask for advice.”

I like this adage, not because it’s a hard and fast rule, but because it speaks to the sideways nature of things.

There’s a difference between our intent and our effect.

The founder of Patagonia didn’t have an aim to build an outdoor clothing empire, but rather to improve the tools he used for rock climbing. He realized that solving his own and others problems provided a way to make a living.

Concerning growth, there are different perspectives to see the work you do.

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