Corporate shift to entrepreneurial values?

It was fun to read the article on the new rules for companies - as opposed to Jack Welch's old rules - in this week's Fortune. In particular, I got a big kick out of Rule #5: Hire Passionate People. This is intended to replace the old rule of hiring only the A crowd and firing the the C's (while the B's madly tried to move up the alphabet chain).

Of course, entrepreneurs are all about passion, and I've been discussing it in this blog frequently. In fact, one of the recent posts 'Deluded by passion?' is about the feasibility of being passionate about a corporate job, and proposes yes, it is possible to be passionate about your role and what you do, though the corporate goal may be less than electrifying. So it was interesting to read about the big companies trying to get 'passion' into their interview checklists, but in all fairness, some of them have always done so, not just because it is the current fad - Apple for one has a history of favoring passion in its hires.

The other rule that stood out was Rule #2: Find a Niche, Create Something New. Again, this is how entrepreneurs thrive - or stay in the game, as pointed out in One Size Doesn't Fit All. When you're just getting started, you're not consumed with being #1, you're fighting to stay alive and finding
customers rooting through under-served niches.

Which bring us to Rule #3: The Customer is King. It was shocking to read the disconnect between executive and customer perception on service. On the other hand, it is almost impossible to find a startup that is not obsessive about its customers - they jump through so many hoops to attract and retain their customers they could be auditioning for Cirque de Soleil. A point of interest - the old rule was that 'shareholders rule'. There could be some of that in funded startups too where investors may drive the agenda and literally rule, but usually any investor who's had operational experience is unlikely to slip on the customer focus.

All in all, I must confess to a certain smugness on reading this article and seeing the startup values moving into the rulebooks of the corporate giants. It's a vindication (maybe these are not 'niche' values after all) and it also offers hope that the big guys will remember their roots and what being in business is all about.

One size doesn't fit all

If you've ever pitched your idea to someone, you'd have experienced this. The eyes veer off to the side, there might be a small pursing of the lips closing round a 'hmmm' or two. You can almost see little gear-thingies or neurons or whatever coming to life as they ponder the question "what does this remind me of? what is this like?".

This desire to seek similarities, it's a very human trait. It seems to help in our understanding, and we use it a lot when describing things to others. "Like" is probably one of most commonly used prepositions - and not just by pre-teen girls. 'Lost' is like 'X-Files' and 'Survivor' mashed-up (or not). A 'dosa' is like an Indian crepe. Shutterfly is like Snapfish. Google is like Yahoo - wait, no it isn't, it's like MicroSoft, no it isn't, or is it like (this could go on for a while).

This is not a bad thing, after all it helps promote understanding. But there is a side effect. When you try to judge a business idea by what it is 'like', your view of it is informed by the connection. This may actually have the unlooked for effect of causing you to misunderstand the idea, which in turn could cause you to dismiss the idea as one that's been done already.

As an entrepreneur, you have to hold on to some simple truths. One, if you have an idea that has a chance of working, most likely someone has already done something that is 'like' it. And that could be a good thing - it won't be your blood on the proverbial edge. Two, even if there's an established player, you may very well be on to something better with your approach. Case in point, the afore-mentioned Google, a late entrant to the search engine space which already had its share of 800-lb primates. Three, seek the differentiation in the niches served. There are very few truly universal solutions. With 6 billion plus people on earth, that's not hard to believe. Four, if you find competition in your niche, if in fact "it's been done already", you still have one more option - get to know your customers, really really well.

I'm going through this almost on a daily basis, and I'm not only learning to tell a better story, I'm getting to be a better listener when a fellow entrepreneur tells his. It helps to remember that 'similar' doesn't mean 'same' and there is a market full of Goldilocks out there looking for just the right fit.

Deluded on passion?

A few days after I'd made the post on finding others with similar passions, I happened to read Jon Carroll's column in the San Francisco Chronicle (June 22, 2006). I really like his columns when I do read them, though admittedly it is not on a daily basis.

It was an amusing and timely (to me) column. He'd quoted Nancy Friedman's post 'Our Passion is Your Problem' - which was an entertaining read too. She (and Carroll) focus on the obvious disconnect between corporate words (aka marketing) and corporate actions. Yes, it is hard to believe that everyone in a large corporation making widgets is passionate about their work, and honestly, most corporations are passionate only about the bottom line. They may specialize in pharma, beauty products, earth movers, whatever - drumming up 'passion' for the speciality is a often hype for maintaining focus in their specific business.

But, when I read the statement 'I know no one who approaches the daily grind with passion' it gave me pause. While it may be true if what you do is a grind, but there are many, many people out there who're fired up about their jobs and don't think of work as a chore. If what you're doing is interesting to you, and you're working with good people, at the very least you're not dragging yourself to work, and most likely you're looking forward to it. Personally, even when I was in the corporate world, there were long periods of time when I was absolutely consumed by, and loving, what I was doing, and couldn't think of a better word than passion to describe my feeling.

Then there's the entrepreneurial angle. I've mentioned passion as being non-negotiable for an entrepreneur about a kazillion times and see it proven true almost on a daily basis. In fact, entrepreneurs don't lose their passion even when their companies become large corporations. Examples are obvious and plentiful - Ford, Gates, Jobs, etc. They insist on passionate people by their side when they're starting out, and will most likely continue to favor them as they grow, though the focus of passion may change.

Discounting the excesses of marketing speak in other arenas, in the entrepreneurial world, looking for people who're passionate about their work is not a fantasy quest - and not doing so could lead to dire results.