Thursday, October 25, 2007

Thoughts on Machiavelli

I just finished reading "The Prince" by Niccolo Machiavelli. One of his more common themes is "the end justifies the means." Seemingly, no matter what means necessary. So it's not very politically correct to say the least.

I had heard lots of bits and pieces about him because his theories are often referenced in various news articles and business books. I was just curious what it was all about and it's a relatively short little book, so I figured I'd read it.

A few thoughts...

The book is essentially a handbook for the head of a country, emperors, kings, or any other "prince" as he refers to them as.

By handbook, I mean, handbook on the acquisition and use of power. The principles he defines have practical application in almost any other situation dealing with power and authority. Some can be seen played out in our democratic politics and business structures of today. So it makes for an interesting read.

Since this blog is about business, I'll try to keep my comments inline. How does any of this fit into business?

He strongly discourages the use of mercenaries (foreign soldiers who are paid to fight in your army). Mercenaries seem great until they're truly tested. When the battle gets tough, their loyalties are with their own, not with their hired boss. Also, in the cases where they are successful in battle on your behalf, you are endebted to them and they may keep the conquered lands for themselves.

This is akin to outsourcing in today's businesses. It's not fair interpret that to mean that all outsourcing is bad. However, in other ares of the book Machiavelli says that the primary occupation of a prince is "war." So it makes sense to translate that to outsource your primary occupation or business function is not good. Businesses need to understand what their primary business is, and where their "value-added" happens. If that central function is outsourced, then they're just asking to eliminate themselves from the chain of power. Well, one could say for example that a company like Apple who outsources most of their manufacturing to China is breaking that rule. The assumption there is that they're a manufacturer... but they're NOT. Their primary business function is design. There are efficiencies to be gained from outsourcing. But, business have to clearly understand what business they're in, and be sure to keep that function "in-house."

Machiavelli understood the rallying power of setting out to accomplish great things. He mentions that in order to become an esteemed prince one should "embark on great enterprises and give rare proofs of his ability." He understood the concept of people wanting to ally with people who are setting out to do something big. People love worthy causes and big projects where they feel they can contribute.

Machiavelli also reaffirms my previous post about the power of surprise and the story-telling that occurs as a result. He says to "resort to unusual and distinctive acts in civil matters... when someone does something extraordinarily good or bad in civic life, he should reward or punish him in a manner that will arouse considerable comment." Providing a story worth telling is a powerful way to disseminate information.

One last point I want to mention is what he says about how the strength of a principality should be measured. To summarize, he says that a principality needs sufficient power and resources to stand on their own when the need arises, or whether they will always require the protection of others. This could be translated to business that they need adequate funding and resources to get through the tough times. For start-ups, this means having the resources necessary to get through the launch phase.

Those are some lessons from Machiavelli that have practical application to businesses.

Friday, October 19, 2007

Balance

Work v. Personal Life.

It's not simple. I have a tendency to overwork myself to the point where my work becomes ineffective. It is typically better for me to take a short break and start again thank to just keep pushing. If it were not for my awesome wife reminding me to stop...I'd work from 7am to midnight every day.

Sometimes you have to stop long enough to remember why you're working. It's great that I enjoy my work. But when my balance is off I become too one-dimensional. The interesting thing is that the imbalance ultimately hurts my business. Being too focused mitigates my creativity, makes me far less personable, and severely limits my social life.

If you look at that list you realize that each of those qualities are essential for operating a business:

Creativity - Essential for innovation.

Being Personable - Business is about personal connections.

Social Life - Meeting new people expands your vision and exposes you to people with talents and knowledge that could help you in your business life.


I'm not saying that you the only reason you take a break is to help your business. I just think it's cool that it ends up working that way.

Without finding that balance, you've got nothing worth working for.

Wednesday, October 17, 2007

The power of... SURPRISE!!!

In his book "The Starbucks Experience" author Joseph A. Michelli talks about the power of the unexpected. It really hit me, because it's so blatantly obvious when you think about it.

As a business owner, making good on your promises is a good place to start. But, if you really want to set yourself apart, venture into the realm of the unexpected.

Popcorn, peanuts and molasses are not what made "Cracker Jack" a household name. It was the surprise!

You see, nobody tells their friends about getting ordinary service. Because IT'S BORING! You tell your friends about the stuff that blindsides you. The crazier it was the more people are gonna hear about it. Those are the items that make up conversation.

Any brand conscious company wants word-of-mouth advertising because as consumers we are completely inundated with bogus, outrageous advertising claims. We need not look further than the junk mail we throw away every day. That's why a trusted friend's recommendation is more effective than a hundred TV ads.

So, what's the secret to a successful "word-of-mouth campaign" (if there even is such a thing)? It's not rocket science, you purposely and consistently do things that are both unexpected and positive.

The more outrageous, the better! You may have heard the story of the customer who successfully returned a car tire to Nordstroms, or they guy who took a hacksaw to his new Craftsman crescent wrench in the parking lot at Sears only to walk back in and exchange it for a brand new one without a word of complaint.

See, these stories were so extraordinary that I'm sitting here writing about them years after they happened.

Surprise your customers and you'll give them something to talk about.

Tuesday, October 9, 2007

Personal Productivity

David Allen, the energetic-screwball-genius behind "Getting Things Done" has one of the simplest approaches to accomplishing goals that's so simple, it borders on stupid.

Imagine this, complex tasks, can be broken down into simple tasks.

What does that mean? Well, let's say I want to learn how to speak French. If I were to put "Learn French" on my To-do list. It would never happen. In the middle of my hectic day I would look at that item and go... "yeah right!" and skip it.

But, if I'm really serious about wanting to learn French I should take the time to deconstruct the final goal into simple tasks. That processing is what allows me to fill my to-do list with doable, manageable, understandable tasks that ultimately lead me to my final goal.

Only simplified tasks should make it onto your To-do list if you expect your list to be of any use to you. To-do items need a specific action, such as "read and learn 10 new vocab words from www.learnfrench.com". Then, when you look at your to-do list, you don't have to process how you're going to go about learning French. You'll just perform the pre-planned actions necessary to reach your goal.

Tasks, should be just that. Simple tasks, "Learn French" is not a task it's a goal. Goals have their place, but the To-do list is not it. If you make the mistake of putting goals on your to-do list odds are that you feel like an unproductive loser when months pass and you can't check them off.

For your own sanity, sense of accomplishment, and happiness keep your task list stupidly simple.