What is a Startup?

The term “startup” is sometimes used too loosely and liberally.  Let’s consider the definitions of two respected authorities in the startup world.

startup-owners-manualAccording to Steve Blank, serial-entrepreneur, Stanford University professor, and father of the Customer Development methodology, “a startup is a temporary organization used to search for a repeatable and scalable model.

According to Eric Ries, entrepreneur, blogger, and author of The Lean Startup, “a startup is a human institution designed to deliver a new product or service under conditions of extreme uncertainty.

lean-startupWith respect to the journey any organization takes from founding to going concern, the term startup refers to the beginning of a process or journey.  Steve Blank’s use of the word “temporary” supports the concept of startup as the first step along a journey.  Once an organization concludes the search for a repeatable and scalable model, it can enter subsequent stages of maturity.

In this stage of the company life cycle, an organization is nothing more than an indefinite series of experiments to find and deliver an effective, repeatable, and scalable solution.  Founders are no different than scientists who:

  • start with hypotheses about problem and solution,
  • design experiments to test the various hypotheses,
  • measure results,
  • gather insights and learn from the results,
  • amend the hypotheses to reflect the insights learned,
  • and repeat this process

The more experiments a startup can conclude in a given period of time; the sooner it will arrive at effective solutions that can be scaled to ever growing audiences.  Given that scientists need multiple attempts at getting an experiment right, all of the experiments leading up to the ones that prove to be successful are considered failures.  Thus, we get the phrase, “fail fast, fail often” because if startups do this, they will arrive at success sooner rather than later.  In a world with limited financial runways, it is imperative startups experience a great deal of failure as soon as possible.

According to this definition, is your organization in the startup phase?

Startup Weekend Delivered a Magical Weekend in the Magic City

Florida International University was the site of some incredible magic as Startup Weekend EDU saw one of its most diverse group of people come together to learn and practice critical entrepreneurship skills in order to take ideas from concept to creation in less than 54 hours!  It could not be more fitting that Miami, Florida also known as the Magic City was home to a magical experience for a diverse group of aspiring entrepreneurs that included: students from elementary, middle, and high school; university students; university professors; K-12 teachers; parents; ex-convicts; developers; entrepreneurs; and local professionals.  The youngest participants at this event were 8 years old and they both presented with their respective teams!  

SWmiami2Startup Weekend EDU is a 2.5 day event whereby educators, developers, designers, and entrepreneurs come together to pitch ideas to solve problems in education and form teams around the selected ideas.  Teams then spend the weekend taking these ideas from concept to creation, culminating into a final presentation to a panel of all-star judges from the community.  Judges assess pitches based on clearly defined problem statement, prototype design, validation of problem and prototype, and finally, the business model. This theme was critical for a region that is home to some of the largest school districts going through difficult challenges.  

Having facilitated over 16 events around the country, I thought I had seen it all.  However, nothing could have prepared me for this incredibly diverse group of people and all of the challenges and possibilities that would manifest over the weekend.  To be honest, I was concerned about whether the event could be a success and if everyone would figure out how to work well together quickly enough to deliver a final presentation by Sunday evening to a panel of all-star judges from the Miami community. Continue reading

The Problem with the Silver Bullet

silver bulletWhat is a silver bullet? According to Google, it is “a simple and seemingly magical solution to a complicated problem.”

The problem is that when the problem is complicated, as the definition states, it is likely to have a multitude of variables that behave in many different ways and at times, unpredictably. If you think of all of these moving parts as a moving target, the bullet isn’t really the solution, but rather a tool, and it is the shooter who becomes most important. What this suggests is that we need to stop looking for magical solutions and instead focus on developing and motivating skilled, talented, and creative professionals to solve some of our most difficult problems.

Nevertheless, we look for silver bullets. We are intrigued by and hopeful that we will be able to find a one-size-fits-all solution that can address an entire organization or industry’s woes. We hope that somewhere out there, there is a recipe and/or a state-of-the-art tool that solves a complicated problem for us so easily that even a caveman can do it. We want to believe that we could just write a big check and purchase the proverbial silver bullet. This isn’t a bad dream…for the maker of the silver bullet, this stands to be a profitable product, and for the buyer, it’s a guaranteed way to become a hero. It seems that everyone wins.

The problem, as I stated before, is that it just isn’t that simple. Complicated problems are like moving targets. At best, there are several regular bullets (i.e. tools, recipes, etc.) and the shooter or the professional is the most important part of the solution. If the silver bullet were real, we would not need professionals in our organizations. The mere talk of a silver bullet undermines our skilled, talented, and creative professionals as it reduces them to robots blindly following an algorithm. This attitude and resulting culture will have a significant negative impact on motivation, at all levels of your organizations. Furthermore, it destroys innovation and ingenuity because the responsibility of solving problems is left to those who can purchase the silver bullets, so what is the use of hypothesizing, testing, and building new solutions.

Jack Welch, the former CEO of General Electric (GE), believed everyone all the way down to the assembly line was responsible for solving problems at GE. In fact, he believed the people on the assembly line were better positioned to solve problems than the people who managed them. He would often walk the assembly lines asking people directly what they thought could be done better. As simple as it may seem, asking the question, “what do you think?” cultivated a strong culture of innovation by drawing solutions from all people in the organization. This question also motivated his people by empowering them to contribute to the greater mission of GE. People who understand how and feel that their work contributes to the overall company are more engaged, satisfied, and loyal. The result for Jack Welch was one of the largest, most successful, and innovative companies of all time, whose stock value rose 4,000% during his 20 year tenure. Jack Welch did not believe in silver bullets, he believed in people.

Empower your people to solve problems for your organization instead of shopping around for a silver bullet. Your people will be the ones to best positioned to decide what the best tools are for solving complicated problems and how and when to apply them. Create a culture of innovation where everyone is a part of the solution.

Design for Awesome: How 19-hour School Days Can Transform Education

What if school were open from 5am to midnight?  That is, what if school was open for 19 hours a day?  Well, anytime I have brought that up, people in education have dozens of reasons why it can’t be.  Anything from those hours are not humane to it’s just not possible.  None of the answers have ever sounded convincing.  What’s more is that everyone is looking at it from the perspective of his or her own lives, not the people schools serve.  Most of the reasons I have heard have to do with not wanting to work longer hours, there’s not enough in the budget, or there just aren’t enough people.

I beg to differ though.  I think everyone is reading into the question the wrong way.  When people talk about extending the school day, it’s often to extend classes, make them longer,  extending the teacher work day, or adding more class time.  But that isn’t the only way to martial arts schooldesign a 19-hour school day.  When I was in 7th grade, my dad enrolled me in a martial arts school.  I went to about one class a day that ran about 60-90 minutes.  I absolutely loved it.  As the weeks went on, I started showing up a little earlier to warm up on my own and practice.  I would then stay a little later so that I could get in a little extra practice time.  Then one day I finally decided to ask the instructor (owner) if I could come in during non-class times to practice.  And what he told me I would never forget.  He said I am a student at his school and this is now my school.  I am not just welcome for class, but at anytime.  As long as the doors are open, I am welcome to come by, practice, talk to him, or just hang out.  Essentially, he said this was my second home and I should feel welcome.  So I did just that, I started showing up anytime I wanted.  On days off from school I spent several hours there practicing, talking to Master Lee, and reading the martial arts magazines.  It was pretty awesome! Continue reading

3 Steps for Building a High Performance Team

Successful businesses do well because of their amazing teams, not their products and services.  Many of us will probably agree that people and teams are the most valuable asset any business possesses and also your most critical competitive advantage.  Rowing Team - HPTUltimately, ideas can be copied, modified, and upgraded.  However, it is difficult to copy teams and/or steal them (well, most of the time).  Furthermore, a well-functioning team is more productive and efficient and thus delivers more value and output for the same money.  However, this is all a moot point if you are not unleashing the power of your team.  If your team is not producing and performing at its best, you are not enjoying these benefits and are susceptible to competition.  This puts you in a position to have to fight competition in more dangerous (i.e. costly, detrimental, etc.) battlefronts like pricing and advertising.

Barcelona Team

A great example of a high performing team.

Building and developing a high performing team requires many important ingredients.  However, there is one fundamental element that forms the foundation for high performing teams and that is clear and concise objectives and roles.  To use a sports metaphor, consider one of the most high performing soccer teams in the world, FC Barcelona.  They are very clear about their objectives (i.e. hold the ball, control the flow of the game, take high percentage shots).  For the record, not all soccer teams have the same objectives.  They also have clearly defined roles and operational strategies for how they execute their objectives.  For a better understanding of what this looks like in action, click on the image of the team for a short video.  You can see from the video how their team looks like a thinking and breathing organism of its own.  It’s not about one person.  It’s about an entire team coming together.

The following is a list of steps necessary to ensure you too have a strong foundation from which to develop your high performance team.

1.  Design and consistently communicate clear and concise business objectives.  This typically begins with the vision of the organization – a clear picture of what, where, and how the business will look, feel, and operate at some point in the future.  The vision also includes what the environmental context will look, feel, and operate like in the future.  In other words, this is the future that the organization is running after.  Next comes the mission.  This will clearly communicate “how” your business will run toward the vision.  From the mission, come your specific objectives.  The more clear the vision and mission are, the more easily you can create, communicate, and evaluate objectives for the business.  These clear and concise objectives are critical to the foundation of high performing teams because it gives way to the next important step.

2.  Design the operational strategy, plan, and processes that will define how the business operates in order to achieve its objectives and execute its mission on a consistent basis.  Imagine your business as a thinking and breathing organism.  When you design your business operations strategically, your business takes on a life of its own.  This has many benefits from a competitive and operational perspective.  Competitively, it is difficult to copy or steal an entire operations strategy and process.  Operationally, it means that the business does not rely solely on people like the owners or top executives to operate successfully.  Instead, the leaders can focus on doing what they are supposed to do – lead – while the business is positioned to operate efficiently and effectively on its own.  With this strategy and plan in mind, you are now ready to begin the next critical step.

3.  Design clearly defined and concise roles that support your operational strategy.  With your operational strategy, plan, and processes, you now have what you need to design the most effective roles for your organization.  These roles will be the ones necessary to maintaining the operation and if clearly defined and communicated, your team will have a deep understanding of the essential role they play within your operational context.  Furthermore, when roles are designed clearly and fit effectively into an operational context, it significantly reduces friction (i.e. employee stress, operational inefficiencies, miscommunication, etc.) in the business.

Equipped with this strong foundation, you can begin to build and develop your high performance team.  This insight is just as important for a three-person company as it is for a 20,000-person organization.  Two weeks ago, I was coaching a startup company that was suffering from some friction and we realized it was due to a lack of clearly defined objectives and roles.

Leaders from successful startup businesses, with anywhere between 2-10 employees, all the way to Fortune 100 companies like General Electric (specifically during the Jack Welch era) have leveraged this framework for building and developing powerful teams.

Start by evaluating your vision, mission, and objectives.  Then look at your business-wide operational strategy to ensure it lives and breaths to accomplish the objectives and execute on your mission.  Finally, take a look at the roles in your organization to ensure you have all of the right people on the bus and sitting in the right seats.