True entrepreneurs have the gift of seeing opportunities everywhere. True entrepreneurs have the curse of seeing opportunities everywhere. The very trait that allows them to envision the possible, allows them to get distracted from achieving the possible.

I recently had lunch with a client, two co-founders of an up-and-coming consulting firm. Having helped them narrow and redefine their focus, and reformulate their positioning, they’re now excited about the possibility of pursuing multiple new verticals and even international work.

Stop. Take what you’ve proven in one vertical and successfully extend it into a ripe-for-adoption second vertical. And defer the complexities of doing business internationally – cultural differences, staffing, regulations, and so on – until that second vertical is proven. Then you’ll have a vertical-independent platform from which to grow your business and expand in the direction you choose.

Many growing businesses lose focus and spread themselves too thin. As a result, they outstrip their infrastructure and ability to deliver. And they implode.

There will always be more opportunities than you can exploit. Always. Narrow your focus. Intensify your commitment. And rigorously execute.

Your thoughts?

Michael

Business is so complex. If only they could boil it down to a few, simple rules for success.

They can. And they have. The authors of a recent HBR article looked at over 25,000 companies across 44 years and deduced … dadada, daaaaa … the three rules for success! (Caution: You may not want to get too excited yet.)

Rule number one: Better before cheaper. OK, hard to break into or upend a market with a so-so product regardless of the price. Got it.

Rule number two: Revenue before cost. No revelation here. You can’t efficiency your way to success if you don’t have revenue. Get the lifeblood flowing before you obsess over cost.

Rule number three: There are no other rules. Cute. I guess “The Two Rules of Success” seemed a touch light for a title, so they came up with this third rule.

So there you have it. Feel better now? No, me neither.

Think I’ll stick with my three rules for success: Develop and sustain the right focus. Continually create the right environment. And get the right people. Do those three things with ruthless consistency and your people will do what it takes to win.

Your thoughts?

Michael

As a leader you need candid and specific input from your people. The straight goods. Not just generalizations or feel-good fluff. So how do you make sure you’re getting it? Answer: Ask the right type of questions.

Don’t Ask: General Questions

“How are things going at the plant?” “Good.”

General questions produce answers that yield little if any information. And they leave too much room for spin. “Good” could mean anything from “Well, the place hasn’t burnt to the ground yet,” to “We’re starting to see some solid productivity improvements.”

Don’t Ask: Positive-Assumption Questions

“Is morale still strong at your location?” “Ya, pretty strong.”

Faced with a positive-assumption question, most employees are reluctant to disappoint. So they respond by weakly confirming the positive assumption. “Ya, pretty strong,” could mean, “Sure, among those who haven’t jumped ship yet.”

Do Ask: Negative-Assumption Questions

“What’s the number one challenge you’re facing in your department?” “Our main supplier has become unreliable at meeting delivery commitments. It’s causing havoc with our production schedule and ultimately we’re disappointing our customers.”

That’s real information that points to a line of constructive questions: “Do we understand what is causing supplier unreliability? Do we know how long it’s likely to continue? How could we adjust our schedules to take this into account? What short-term alternatives are there?”

Psychological research has found that respondents are far more likely to divulge problems when asked negative-assumption questions (87%) versus positive-assumption questions (59%) or general questions (10%).

The point? To get real information, ask negative-assumption questions with positive intentions.

Your thoughts?

Michael

How strong is your brand? Here are three benchmarks against which to test it:

1) Focused and Memorable

It’s often said that you can’t be all things to all people. You can’t be both Courvoisier and Coca Cola. Every strong brand is known for something. That something has to be memorable. It can’t be convoluted and it can’t be too conceptual. What is BMW known for? Performance. That’s why their tagline is (can you complete it?) “the Ultimate _______  _______.”

2) Desirably Different

Everyone talks about differentiation but there are many ways to differentiate yourself that are irrelevant (or even offensive) to the market. You have to be different in a desirable way. Colgate Kitchen Entrees, BIC disposable underwear, and Harley-Davidson perfume were all different. Quick test: desirable or not?

3) Ruthlessly Consistent

If you crave a burger from time to time and you find yourself traveling, you want to know that the Big Mac in Austin will taste like the Big Mac in Boston. Your desire is based on an expectation and if your experience doesn’t match it then you’re disappointed with the brand. With strong brands, your brand experience consistently matches your expectations.

How does your brand measure up against these three attributes? And which attribute should you strengthen to be more competitive?

Your thoughts?

Michael