Monday, October 26, 2009
Getting your Results on Track
The power of the right question.
Now that you have a simple way to measure you and your team’s 90 day priorities the next critical aspect to consider is what to do if you are behind. Sometimes this is obvious and it involves just spending the time doing what you know needs to next be done to get your tasks moved into the “on track” or “ahead” column. However quite often it is not that clear. The best way that I have found to accomplish this is to ask yourself a question on a consistent basis, i.e. daily, to keep you moving forward in accomplishing the priority task at hand.
The human brain can answer any question so of course the key to this technique is asking the right question. At Business Instincts Group (B.I.G.) the consulting firm I am a part of we have a construct that helps us determine the right questions to ask.
Question Construct:
What: What do you need to do?
Context: Type of action you need to take, i.e. is a new action, a consistent action, a bold action, etc.
Time: How often do you need to take this action, i.e. hourly, daily, weekly, etc.
Result: What is the desired result?
Incentive: Ask, why this is behind and “tag” (see example below)
Example:
As outlined in the October 12 post the measurable result Steve determined for his search engine optimization task was a Page 1 Keyword Search Engine result by Dec 31/09 for Sustainable Startup. Steve also determined that he was about 50% complete this task and that he was behind on it at that time.
The next thing we now do is design a question that Steve can ask himself to determine what he needs to do on an hourly, daily or weekly basis to get on track. FYI, My update meetings with the people I work with more often than not consist of answering the daily questions to determine what needs to be done that day to ensure we are on track with our measurable results.
The question that we designed for Steve:
What consistent action do I need to take today to ensure Sustainable Startup has a page 1 keyword result and I am not stressed by the amount of time it takes to do this task?
Here is the question broken down as to how we designed it as per our construct. What, (What, all the questions we do for this purpose start with “what”), consistent, (Context, to determine context ask the question why is it not getting done. If the answer is, “I don’t have enough time then the context may be consistency. If the answer is I am not sure what to do next the context may be what “new” action.) action do I need to take today, (Time, “today” is used because in discussing Steve he indicated that he needs to do daily work on this task.) to ensure Sustainable startup has a page 1 keyword result (Result, as demonstrated in the October 12/09 posts) and I am not stressed by the amount of time it takes to do it, (Incentive, is determined by asking what has prevented the person to be ahead of schedule on this task to date and then tagging the question at the end with what would prevent this from being the case).
For a video explanation of the above please see today’s accompanying video post
Next post we are going demonstrate this process in action showing how effective it can be as well as demonstrating the different results depending on the seemly slight difference in the question asked.
Wednesday, October 21, 2009
Measurement in an Organization Defines Culture
1. Fits into and relates directly to the big picture. Again, this is why clarity is step one. If everyone in the organization clearly knows what the plan is they can know why the measurement at hand is important. I have found that the best way to ensure that measurement is effective and taken seriously is to have the people responsible for the measures design what the measures should be. By doing this the people responsible are also designing the process of executing the plan and strategy. The White Board Video accompanying this post will go through an exercise that demonstrates how to do this as well as accomplish the following two points.
2. Immediately Self-Measureable. Self Measurement is only effective if it is easily measureable at any moment by the people responsible. If it takes more time to measure or think about measuring than it does to write this sentence, typically people will not measure. Instead, they will get wrapped up in just trying to get things done because measurement has become something that gets in the way of getting things done. My experience has show that if something takes longer than 30 seconds to measure, people avoid measuring.
3. Public. People like and need to perform. If you do not create an environment where they are performers they will not perform. Give people a stage and watch what happens to performance! Making measureables public allows people the opportunity to show how they contribute to the objective. This is healthy from both the perspective of someone knowing where they fit as well as everyone else knowing where that person, team or department fits in an organization.
Monday, September 28, 2009
“Measurement is to an organization as Language is to a society”
Language communicates what is most important in a society and how we as individuals fit into it. Measurement does the exact same thing.
Like language, measurement has infinite dialects and subtext. When one realizes this, the act of measurement becomes an art. Just like mastering a new language, mastering the art of measurement becomes one of (if not the most powerful) of all the assets in your toolbox.
Generally when I am working with clients and we start talking about measurement, almost inevitably one of the “right brain” types pipes up and insists "numbers don’t lie" and that the "measurement is in the bottom line profit". I fully recognize this has validity but I view the bottom line profit as the result and not the measure. If organizations wait until they get their results to determine what needs to be done next, then that organization is in big trouble.
In general I have found most often that measurement is viewed as a discipline. It is quite often something that is imposed or insisted upon by management and shareholders. I rarely have seen a company be sustainable when measurement is enforced. Enforcement of measurement is usually done out of desperation. When I refer to desperation I mean the organization is in trouble and management is looking to increase “productivity” or “output”. Most often I see this as a case of managers and shareholders/investors confusing measurement with results.
Next post we will run through an exercise that can be used to build daily measurement into every position in an organization.
Wednesday, September 16, 2009
Evolution
Two last items on the last dedicated blogger post. 1.) Sustainable Startup Bootcamp is on Friday September 25th. at 1:30pm -4:30pm at 3002 Ogden Rd. S.E. Please RSVP with Erika@cameronchell.com. 2.) Sustainable Startup has a fan page on Facebook. If you do a search within Facebook, "sustainablestartup" it will come up as the first search result. It is just getting started but your joining will help us evolve it to a useful place for your startup initiatives to flourish.
Tuesday, September 1, 2009
Draft One of the Book Outline
Draft one of the book outline: 5 Steps to Building a Sustainable Startup
Step 1. Clarity - being very clear on what we want to accomplish as opposed to what we think we want to accomplish.
Step 2. People - being able to identify who we need and not what we need.
Step 3. Working Plan - "The key to a plan working is not the plan but the process." - Chell, August 09
Step 4. Cash - prioritizing & maximizing your cash.
Step 5. Balance - Live within your means and pay yourself first.
This post completes our goal of having a draft outline for the Sustainable Startup book done by the end of August, (I know it is September 1st :-)
Next post we will continue with the second and third components of a Working Plan. Scalability and Measurability.
Saturday, August 29, 2009
Simple, Simple, Simple.
I am going to use Sustainable Startup blog as an example so you can see how I build out my working plans. Also, because it is real time and you are witnessing and participating in the actual development of the Sustainable Startup business, (this is a reality blog).
Back on May 7th we set out goals for the year, as such we are going to build our working plan for the last quarter of this year based on those goals. Just to review, the goals that were set for the end of the year were as follows, (keep in mind we have hit all of our goals up to this point):
1.) Average one quality post per week as rated by the followers.
2.) Grow from 40 members to 80 members.
3.) Have full clarity on the Sustainable Startup book.
4.) Build a working plan and business plan specifically for the book.
5.) Outline of book finalized.
6.) 33% of the book written in first draft.
So how do we start? As in most things in life you start with a question. I take the first goal, "Average one quality post per week as rated by the followers" and I ask; "What do I need to do to ensure I complete one quality post per week as rated by the members". When I ask I don't "think" I just write. I never stop my pen from writing for 2 -5 minutes. I write what ever my brain is spitting out as fast as I can. When I am in a group doing this on a white board I encourage people to just yell out what ever is on their mind as it relates to answering the question. In doing this you will come up with several answers. The goal is to now prioritize the top three. If I am in a group I give everyone a chance to give their top three actions to ensure the goal is reached. I give each persons top answer a ranking of 3 and their least a ranking of one. I then total up the rankings and the the three with the most points become the three actions of the working plan for that goal. I like to stick to three actions. Three is an easy number to remember and it is generally not to many things to get done. However as you will see below sometimes I increase or decrease the amount of actions depending on their complexity.
As I did the above exercise these are the three actions that game out as the priority actions to do to ensure we hit the goals. You will notice that the actions are not elaborate and that they are doable. I am relatively sure that you will agree that this process can be done by anyone for anything that needs to be prioritize and get done in an organization from reception to CEO.
1.) Average one quality post per week as rated by the followers: A.) Schedule time in my calendar to write just as if it were a meeting. B.) Write daily in smaller chunks. C.) Personally ask for feedback from a different member each week on the current post.
2.) Grow from 40 members to 80 members: A.) Survey the members asking if they would refer anyone to the site and if so why, if not why? B.) Move the blog to a platform that has more flexibility and capability i.e. video. C.) Make it easier for people to sign up i.e all that is required is an email address. D.) Do some Search Engine Optimization work on the site once on a new platform. E.) Do some social on-line networking with other sites in the same space.
3.) Have full Clarity on Sustainable Startup Book: A.) Do Clarity questions, (Step 1). B.) Identify who I need help from or to hire in order to complete the book and get it to market, (Step 2). C.) Corporate VSO - 12 word elevator pitch.
4.) Build a working plan and a business plan for the book: A) Start a PlanHQ session just for the book. B) Research publisher vs self publishing costs/benefits, options. C.) Research and build projections. D.) Look at hiring resource to help write the business plan. Do a VSO for the position.
5.)Out line of book "finalized": A.) Once clarity questions are answered spend 1/3 of my daily Blog writting time on the Book Outline. B) Get feedback from blog members. C) Get feedback and input from published authors in the space.
6.)33% of book written in first draft: A.) Once clarity questions are answered and the outline "finalized" spend 1/3 of my 1/2 of my blog writing time on the book.
If you have signed up for PlanHQ you can now go to it and see each of the goals set up and the actions required to accomplish.
I know this seems to simple but I assure you it is a process that gets things done and they are the rights things to get done. This allows the process to scale across an entire organization but more on that next post.
Hope you are having a great weekend!
Wednesday, August 26, 2009
Step Three. Working Plan
Sunday, August 23, 2009
Touching base
As outlined by the Clarity Questions http://sustainablestartup.blogspot.com/2009/05/answers-from-plan-hq.html for Sustainable Startup the end of the Quarter is approaching on August 31/09. We had three Widly Important Goals to accomplish. I wanted to touch base on where we are at with these.
Goal 1. Average one quality post per week as rated by the members. May 7th was when the goals were posted which equals 12 posts required to meet the quantitative part of the goal. This is post 10 and I have completed post 11, The Working Plan Defined, which will go up Tuesday August 25th. I will have one other post completed and up by the end of the month which will make 12 posts. Post 12 will be demonstration of how to develop and use a working plan based on the clarity and setting the goals/tasks of Sustainable Startup up for the next month (September) and Quarter, (ending December 31/09) running through the working plan process. The first post in September will be a post asking your candid feedback on the blog and the content in particular. Getting your feedback will allow us to see if we are satisfying the qualitative part of the goal - the quality of the posts as determined by the members.
Goal 2. Grow from 25 followers to 40 members by the end of August. We are at 37 as of today. 3 more to go in the next week. If you think this Sustainable Startup blog worthy we would sure appreciate you recommending it to anyone you think would appropriately benefit.
Goal 3. Have a rough outline for a book. I am anticipating that the outline for the book will be following a similar outline that this Blog has. We will spend time next weekend compiling what we have learned since starting this blog and post a rough outline by month end.
Sustainable Startup Bootcamp held it's second session. Seven of us were in attendance. I thought the energy was really good! If anyone who was there would like to discuss any aspect of it please feel free to comment in the comment section at the bottom of this blog. Two highlights for me: 1.) We are adhering to the values of the bootcamp that the participants defined as most important because of the measurable tasks we put in place - this is a working plan in action! 2.) Clarity Question Challenge, I am looking forward to one on one phone time with each of you over the course of the next month to further review, refine and challenge you on your Clarity Questions.
Lastly, I have some emails that a few of you sent me that I will be getting caught up on in the next couple of weeks. I will follow up via email or phone if appropriate. I hope you have all had a GREAT summer, I look forward to a fantastic fall.
With great regard,
Cameron
Saturday, August 1, 2009
(Measurable) Working Plan
Before I get into this weeks post I would like to make a special mention of Marc Dewalle. Marc is the force behind http://www.northcarolinastartups.com/. Somehow Marc became aware of our first boot camp held last month and took a look at the content on the Sustainable Startup Blog, in particular as it relates to Step one, Clarity. Marc wrote about us on his blog with a positive endorsement. http://www.northcarolinastartups.com/2009/07/24/if-you-answer-just-1-question/ Thanks Marc! After having had a look at Marc's site I want to encourage everyone to check it out, regardless of where you are doing business. If you are into startups or venture capital it is great resource and well put together.
A Measurable Working Plan is not a Business Plan. I am not going to kill a bunch of pixels on the difference between a working plan and a business plan but it definitely is deserving of some upfront clarification. I look at a Business Plan as a summarized research document that is presenting a business case to raise capital. A working plan is process by which you manage your business. I go a little further and call the working plans I put together for investors and/or shareholders Measurable Working Plan(s), I will explain. Because in general I work for investors and shareholders, (the money people) of startups more emphasis is put on accountability as opposed to possibility. Possibility is what the founders and early management tend to focus on, and rightly so I might add. In my experience the accountability mentality has shown to be counter productive to the management team/founder, (I know this goes aganist current popular thinking). Further, I have found it is very often used as quick fix answer that the money people like to throw out when things are not going as per their expectations, "We need accountability" (just as an aside another quick fix answer that I hear a lot is "it is a communication issue"). I have come to believe that the current accountability mentality is about blame and not about problem solving. The fact of the matter that I have witnessed is that it is rare that I have worked with an investor that wants the startup to work more than the founder or founding/early stage management team does. The founder or management team is generally willing to do what ever it takes to make the startup successful. The key that I have found to be effective is to make the project measurable at any point as opposed to "accountable" at certain points. If a project is measurable at any given time I have experienced that a founder and/or management team will make the needed changes or adjustments however harsh to ensure success. If a team is clear and measurable I have not seen an investor that would be more harsh than the team would be on itself. This is why I like the measurable mentality as opposed to the "accountable" mentality. One may think that I am splitting hairs but I assure you that difference is very significant. I hope the writings and interactions we have on this topic on the upcoming posts will provide insight on this matter.
In the next few posts we will layout the five areas that define a successful Measurable Working Plan. Then, explain how to build and manage a measurable working plan on a daily basis.
Thursday, July 23, 2009
Bootcamp and Blog update
We had our first Sustainable Startup Boot Camp on the afternoon of Thursday July 21st. It was Awesome! 10 of us were there and the energy was super cool! The first thing we did was establish the purpose and values of the boot camp and then the actions that will allow us to measure if each of us are managing and participating in Boot Camp based on the "Boot Camp Values" we established. I would so like to write more about this but I think I will leave that to the people that attended. If you attended I encourage you to share your experience, questions and insight in the comment section at the end of this post.
Secondly, I wanted to let everyone know that Blogger has a bug that is affecting the Members listing section of 1000's of blogs that are hosted on the Blogger platform. I apologize for this bug and thank you for letting me know about the problem. You can still sign up as a member of the blog by clicking on the FOLLOW BLOG button at the top of the blog in the thin blue header, (third button from the left). All the bug is currently doing is somehow not letting the Members list be visible on the side bar of the Blog. I am not sure how long it will be before it is fixed. If you are trying to sign up and having problems or have any concerns in general please email Erika, erika@cameronchell.com so that as soon as the problem is fixed or we know of the solution we can inform you.
Thanks for follwoing Sustainable Startup Blog and another thanks to those who were able to attent the 1.st. Sustainable Startup Boot Camp. The Next Boot Camp will be held on Friday August 21st. 12pm (lunch will be served) to 3pm. Please let Erika, erika@cameronchell.com know if you can attend. Boot Camp will be held at Tarco Engineering, (thanks again Tarco - you guys are AMAZING!) 3004, Odgen Rd. S.E., Calgary, Alberta, Canada.
I will sign off tonight letting you know you can expect to see a new blog post as it relates to the next step "A Working Plan" next week.
Sunday, July 5, 2009
1st. Sustainable Startup Boot Camp
This is a quick post to announce the start of Sustainable Startup Boot Camp. The first session is going to be held the afternoon of July 21st. Bootcamp will be once a month and is designed to follow the posts of the blog starting with Step 1, (Clarity Qestions), through to Step 5, (PLWYMPYF). Bootcamp is an offering to the Sustainable Startup members in support of feedback for the blog's eventual book. No fee is associated with the Bootcamp but feedback and referrals to the blog are always welcome if warranted. In addition to the Step Work we will also be using and demonstrating different techniques useful for PlanHQ the on-line businessm plan software that Sustainable Startup Blog uses. We plan on videoing the sessions and posting the exercises and highlights.
The first session will be from 1pm - 4pm at 3004, Odgen Rd. S.E. Calgary, Alberta, Canada.
Email Erika@cameronchell.com if you would like to register.
Finally, I want to say thank you to Jessee and his partner Adam, (our new member) as this bootcamp was a result of the two of them talking up what they have been able to apply in the first couple of steps of Sustainable Startup.
In the next post we will start Step Three a measurable Working Plan.
Thursday, June 18, 2009
Mapping Individuals Actions to Corporate Goals in 15 minutes!
I have found that people in general follow a consistent pattern in being part of a team. first they will tend to do and move toward doing what they are good at. Second they will tend to do or move toward doing what they feel contributes most to their success on the team. HR departments in general are really good, as are profiling systems in helping facilitate the first part; getting people contributing in ways that they enjoy and are good at. However, the second part of the equation is all about the clarity of the project and if someone is feeling they contribute or have value. I cannot emphasise enough the enormous importance of this second part and how due to its subtleties it is generally overlooked to the dire consequences of the team member and the successful desired outcome of the project. Not being able to manage where people can best feel they contribute is in my opinion one of the most prevalent reasons projects, startups and companies in general fail. The first part of solving this is step one, the Clarity Questions, (as outlined in previous posts). The second part is a mapping technique I have modified from the Verbalised Summary Objective, (VSO) technique. As you may recall the The VSO technique is also the foundation on which I displayed how I liked to build a "10" word elevator pitch. I was originally introduced to the VSO technique by Paul, one of Sustainable Startup's followers. He directed me to the following 3 1/2 min video http://www.bnet.com/2422-13731_23-265800.html. The video is of Howard Muzio, CEO of Group Harmonics explaining the VSO technique. Howard is using the technique for a slightly different purpose but I have found that with a bit of a twist it has been a great tool for aligning peoples talents to the company's objectives. I encourage you to view the video now and then come back and finish reading this post.
A explained in the video the formula goes like this, I use "x" (my resources) with "y" (people) for "z" (result). I have modified it for our purpose to, I use "x" (my resources) with "y1" (people) and/or "y2" (to do) for "z" (result).
I will use Erika who works on this blog with me as an example. In doing this exercise I ask two key questions. First I ask; With respect to the Sustainable Startup Blog how do you currently spend your time and with whom doing what? When Erika and I did this originally the answers were:
1/3 time on the web researching.
1/3 time administrating
1/3 time marketing
The second key question I ask is: What do you want to be doing and what do you feel you should be doing to hit the goals we have outlined in the Clarity questions.?
(You will notice that this question address both the want and the contribution, "feel you should be doing" that make up the two areas that people most gravitate toward in doing a job or working on a team) The answers I get are also more thought out and more specific but the first question is still very important as it provides a base to build on. Also, I follow the formula closely when working through the second question, in particular by paying attention to the "z" for what result. You will notice in the example below each area of the work described now has a purpose that inevitably relates back to the clarity questions.
I spend 20% of my time researching other blogs and how they are building content.
I spend 20% of my time researching other blogs and how they are attracting followers.
I spend 20% of my time with Cameron reviewing my findings, discussing ideas, understanding where we are going with his writing.
I spend 10% of my time on administrative tasks so that people have a professional experience with the blog.
I spend 10% of my time updating PlanHQ so people can see how PlanHQ works and interacts with the blog.
I spend 10% of my time marketing the blog online in a manner that we can hit follower targets.
This process takes some work in terms of having to examine what someone is doing. At first, (assuming your clarity questions are done) this make take a hour. As you become more familiar and practiced at it you can complete it in 15 min. As a company or project matures and more people are added or as goals change you can spend 15min with team members redefining their roles as they best match the clarity questions. I have found few tools as powerful as this.
One question you may have is; What do I do if this is a new hire or potential hire? I share the clarity questions with the person and then start with question #2. It is a great technique to use in an interview to see if someone really "gets it" and will be a contributor to your team. If you hire the person I suggest that you go through this process the first day they start then again at the beginning of their second week, then again at the beginning of their second month, then again at the beginning of their second quarter and then on an as needed basis but generally no less than two times per year.
This post was not easy to write and this is one of those techniques best explained by doing or demonstrating. If anyone would like to spend an hour on the phone or in person going through this for them self or their team members I would be happy to do so. If you take me up on this offer I would ask that if you think the process is usefull that you refer a friend or collegue to participate in the Sustainable Startup blog. Please feel free to email myself, cameron@cameronchell.com or Erika, erika@cameronchell.com if you would like to take us up on this offer.
Hope you have a great week,
Cameron
Wednesday, June 10, 2009
passion x SIMPLE = practical
This post is all about the second part of the Sustainable Startup People Formula, "Simple".
If your startup is doing less than $25mm per year and/or not doubling in size annually I would be very skeptical of its success potential if it has an “HR department”. That’s correct, “if it has an HR department”. I am not against HR departments or their function; in fact I think their intended function is the most important aspect of the business. So much do I think of the function of HR that in a startup I believe the function must be handled by the senior or founding executive of the startup. I am not talking about processing payroll or the administrative tasks of HR, I am talking about areas like employee strength analysis, job descriptions, compensation, performance reviews. Also, in a startup I am not for over analysis and/or overuse of “profiling” systems. These systems have their place in a statup and are very important as an organization matures but initially I think they are relatively ineffective.
I have not seen strict personality profiling systems be overly effect in startups. These systems tend to be very accurate and insightful but not overly practical in mapping to what is getting done in the startup and what needs to get done with the resources you have. As we all know the art of the startup is in succeeding with limited resources. Rarely do we have “unlimited” resources to call upon to hire the “perfect profile” for each job task, description or title we need in order to get to market. Using the process that I will describe and demonstrate next week we can map goals to the tasks currently being done by the people currently doing them. In doing this you will see your holes and more importantly who needs to attend to your corporate strengths. You can determine who best can currently fill in what is lagging and who needs to absolutely stay focused on what is most important, (What is most important to focus on is your strengths. Your strengths are your key differentiators, Clarity Question #4)
What have we covered in the SIMPLE part of the formula? 1.) You don't need an HR department for a start up, but that HR is the most important aspect of a startup to be handled by the senior executive. 2.) Profiling systems are good but generally assume you have the money to resource the perfect person for the specific positions you have to fill. Next weeks post will describe the practical process to map your existing resources to what most importantly needs to get done in your start up.
Thursday, May 28, 2009
The People Formula, PxS=P
Sustainable Startup blog is best experienced when used in conjunction with PlanHQ, an on-line business planning tool. If you want free access to planHQ for the Sustainable Startup blog email erika@cameronchell.com and she will send you a login name and password.
You will always here it said that people are your most valuable asset. I have learned that people are also by far your most expensive and complex asset. Based on this notion and a lot of hard lessons, I have developed a formula that I keep front and center whenever I am dealing with HR or the “people asset”. Over the next couple of weeks we will run through this formula as well as an accompanying method I use to implement it. The formula is PxS=P. Passion x Simple = Practical.
Passion. Much ado is made about passion and without it a startup stands little chance for any level of success. Most startups love attracting people to their cause and attracting passionate people to a cause is generally not that hard. In saying that, one of the most prominent reasons for failure in startups is that startups attract passionate people to a cause. Lets me stress this again so you don’t think I made a mistake in what I wrote; "One of the most prominent reasons startups fail is that they attract passionate people to a cause". A cause is something that brings about an effect or a result. A causes on it's own is a problem. A causes is a "big idea" and big idea’s have a lot of interpretations of what the big idea is, how it gets accomplished, why it needs to be accomplished, who should accomplish it, and the most contentious, who’s cause or idea is it? Passion is a double edge sword. While a passionate team can bring enthusiasm, drive, fortitude, adherence, focus, dedication, and more, it can also bring politics, ego, obstinance, burnout, and disappointment amongst other challenges. In order for passion to be effective it needs to have a purpose. A purpose channels and causes passion. While a cause can bring about a change a purpose gives reason and direction for that change. A purpose has context, a context that is created from clarity (There is that word again "clarity". Everything starts with step 1 (clarity) as previously outlined. Clarity, Clarity, Clarity).
With clarity you can create purpose. With purpose you are less likely to attract the “wrong” passionate people which is just as important as attracting the “right” passionate people. By really working the clarity questions from Step 1 with your team you are putting in the first, most important, least expensive, and most effective layer of HR screening possible. In doing this you will automatically implement the most important aspect of the formula: Attract people to a purpose not a cause.
Tuesday, May 26, 2009
The People
The last few years there has been a deeper focus in the business world around having a living business plan. A plan that is used for more than just raising capital or communicating to shareholders. This is a great concept but I have seen little that actually explains how this is done or what real expectations a company should have around it. PlanHQ is a great online tool to help us accomplish a living business plan. What we are doing here is applying a methodology and subsequent process to accomplish a "living business plan". The process that I use with my clients and ventures has has five Steps. I have outlined them in earlier posts but here they are for review:
1.) Clarity - Accomplishing what we want as opposed to what we think we want, (Huh??)
2.) People - We must be able to identify who we need and not what we need.
3.) Working Plan - Measurable.
4.) Cash - Fuel to establish and grow.
5.) Balance - PLWYMPYF (Personally Live Within Your Means, Pay Yourself First).
We have now worked through Step 1. You will notice that I did not say we have completed it. As this is a process it is something that we will always be improving and never really "completing". Note: Step 1 is the key to the quality and success of the other steps as EVERYTHING in this process is built on Clarity.
In the next Blog post, (late this week/early next week) we will start Step 2. The People.
I hope you enjoy the content and experience of Sustainable Startup. Please feel free to comment and invite others.
Have a great week!
Tuesday, May 19, 2009
Through the use of it's Reality Blog Sustainable Startup followers can experience a startup without the risk.
(h) x (w) = (r). (h)What strategically different or exceptionally strong resource you use to deliver your product or service, (w) Whom your consumer or user of the resource is, and (r) is for what Result.
By having answered the clarity questions the formula becomes plug and play, however it still takes discipline. What is the resources you use to deliver your product or service. The answer to this question is the same answer as to question four of the Clarity questions, "How does our approach differ from that of our competition?" In the case of Sustainable Startup blog it is that we are a reality blog building a startup (The Sustinable Startup blog) in real time via PlanHQ. Whom in the Case of Sustainable Startup are the followers of the Blog and the Result is the experience the followers get from the reality blog.
The net result of this elevator pitch is: The Sustainable Startup blog...uses it's (h)Reality blog to give the (w)followers the experience of a (r)startup without the risk.
It takes some work to widdle down what you want to get across only to what is most important.
In using the formula keep the following in mind:
1.) Avoid cognitive dissonance, introduce only one concept and benefit in your elevator pitch.
2.) Let your audience think through the model and "get it". You will know this will happening if they ask you questions that are singular and you find them easy to answer. Remember, keep your follow up answers in the same format - singular and 12secs.
Monday, May 11, 2009
10 Lessons From A Failed Startup
This week on the blog we are still on the topic of Clarity. I will run through a process that will build an elevator pitch that can be delivered in 12 seconds. Yep 12seconds!
Finally, welcome to the new followers. If you would like to be part of the PlanHQ online business plan for Sustainable Startup send your email address to erika@cameronchell.com and she will have PlanHQ grant you access.
Thursday, May 7, 2009
Answers from Plan HQ
Clarity Questions: Sustainable Startup blog.
Why does the organization exist, and what difference does it make in the world?
The Sustainable Startup Blog exists to be an interactive forum to explore, challenge and flush out ideas and concepts of building a "sustainable startup". My ideas and contributions to this blog come from my 26 years of experience of doing startups. This difference I hope that this blog makes is that we are able to zero in on what it takes to make a startup sustainable and then somehow in some form and manner take the information and interaction from this blog and expose it in a practical and elegant way to the startup world for the social and economic benefit of entrepreneurs and their glocal communities.
It is my view that entrepreneurship and startups in particular are vital to a sustainable economy and society. The better our entrepreneur and startup abilities in a society the better the society’s potential.
What behavioral values are irreplaceable and fundamental?
In my view there are three fundamental values required in order to fulfill this blogs stated purpose.
1. Adherence. Containing the scope of posts and discussion within the purpose of the blog.
2. Open Minded Risk. Allowing posts, comments and all interaction to not have to be the "right" answer but opinions, views and/or insights of how build a sustainable startup.
3. Consistency. The timing and nature of the posts, comments, discussion and interaction must be such that it not only engages people but keeps them engaged in an ever more passionate manner.
What business are we in and against whom do we compete?
This blog is in the best Practices arena of the Venture Capital Industry.This blog competes with any other blog looking to build credibility with and
garner the trusted attention of Venture Capital and Angle Investors.
How does our approach differ from that of our competition?
One, this blog is not so much for the venture capital player looking to raise capital but for the venture capital player looking to grow and maximize her venture capital investment.
Second, this blog is what I am calling a reality blog. This blog is building itself as a sustainable startup. I plan on doing this with the Sustainable Startup Blog live/in real time and transparently. Hopefully we will all be able to take our experience from this Reality Blog and apply it where useful in our own venture investments.
5a. What are our Goals this month? (April/May)
4 quality posts (as rated by the Blog followers) as it relates to PlanHQ and how to
use the tool.
Grow from 20 followers to 25 followers through social networking and
recommendations from existing followers.
5b. What are our Goals for this Quarter? (May - August 2009)
Average 1 quality post per week as rated by the followers.
Grow from 25 followers to 40 followers through social networking and recommendations from existing followers.
Use the blog writing and feedback from followers as the basis to have and outline for a book.
5c. What are our goals for the end of this year? (End of 09)
Average 1 quality post per week as rated by the followers.
Grow from 40 followers at end of August to 80 followers through social
networking and recommendations from existing followers.
Full clarity on a book based on the writing and feedback of the blog. The clarity
will come from the six clarity questions.
Business Plan written specifically for “the book” – using planHQ methods
outlined and developed in the process the blog group is currently undertaking with
PlanHQ.
Have an outline for a book complete based on the writing of the blog and the
feedback of followers.
Have approximately 33% of the book written in first draft.
5d. What are our goals for next year? (End of 10)
Average 1 quality post per week as rated by the followers.
Grow from 80 followers at end of 2009 to 200 followers through social
networking and recommendations from existing followers by end of 2010.
Book Written.
Business Plan being executed.
5e. What are our goals for five years from now?
For the followers of this blog to SIGNIFICANTLY capitalize on the experience and purpose of this first “Reality Blog”. (As per question 1. The Sustainable Startup Blog exists to be an interactive forum to explore, challenge and flush out ideas and concepts of building a "sustainable startup". This difference that this blog is trying to make is that it is able to zero in on what it takes to make a startup sustainable and then somehow in some form and manner take the information and interaction from this blog and expose it in a practical and elegant way to the startup world for the social and economic benefit of entrepreneurs and their glocal communities.)
6. Who has to do what for us to achieve our goals for this month, this quarter, this
year, five years from now?
This Month
Cameron: 1 Quality post per week
Invite 10 people to view the blog. from my database.
Use 12 second tweeting video to update and promote blog to my social
network.
Ask blog followers for recommendations and referrals to follow the blog.
Implement some sort of survey mechanism (maybe a widget) to the blog
to be able to get candid feedback on the posts from the blog followers.
This Quarter
Cameron: 1 Quality post per week
Invite 40 people to view/participate in the blog. from my personal
database.
Use 12 second tweeting video to update and promote blog to my social
network.
Ask blog followers for recommendations and referrals to follow the blog.
Erika: Start Sustainable Startup groups on Major social networks all linking back
to the blog.
Ask blog followers if they would like to chair any of the Social network
discussion groups.
This Year
Cameron: 1 Quality post per week
Invite a minimum 90 people to view/participate in the blog from my
Personal database.
Use 12 second tweeting video to update and promote blog to my social
network.
Ask blog followers for recommendations and referrals to follow the blog.
Ensure full clarity for a book.
Design/experiment with a system whereby they will receive credit and possible monetary participation in book profit.
Erika: Design program to exponentially grow social network groups.
Get publishers, VC Firms and writers actively participating in the blog and book loop process.
Blog
Followers: ?
5 years
Cameron: 1 Quality post per week as rated by feedback of followers.
Erika: Research and market one quality blog post per week.
Blog
Followers: Participate in one quality blog post per week.
Monday, May 4, 2009
Wednesday, April 29, 2009
Clarity Questions - ANSWERED
If you have already signed up for PlanHQ then you will have received an email alearting you to the updates to the plan.
Further you will notice that Erika has set up a new Goal catagorie called Bucket List. This is a place for anyone to input ideas, goals, objectives or thougths that they may not yet know where or how the idea may fit into the plan. It is also a great place just to dump brainstormed ideas or random thoughts you may have with respect to a plan you are building such that they do not get forgot and can be used or brainstormed later. Often I find this list, when reviewed by other team members invokes a lot of new and better ideas as well as constructive critisims -very important.
Someone inserted a Goal,
All members of this blog should discuss the value of such an endeavor in person. 29 June 09 (in 2 months) "The perspectives each member brings to the sustainable HQ blog will be unique and thus, its application will be better understood if all suggest why we feel the concept is a valuable one."
If you inserted this goal, thank you for participating and GREAT suggestion! I would like to suggest that if you insert a Goal I encourage you to put your name on it, (not necessary but it would help). Anyway, I think this is a great idea for a "if you can make it" get together over a lunch or breakfast (my treat) to discuss this process. Also it is a great networking opportunity for all of us. Details to follow over the course of the next number of weeks. If anyone has any thoughts or feedback on getting together please email myself, cameron@cameronchell.com or erika@cameronchell.com.
Finally, you will notice in PlanHQ I set up a new goal to be completed by next Friday called Elevator Pitch. In next weeks blog post I will go through a process call Verbalized Summary Objective (VSO) which is a great exercise for developing your elevator pitch (10 words or less) based on the answers to the clarity questions.
Wednesday, April 22, 2009
Time to Get Started
To start I think it important to understand the philosophy under which I have built business and advise my clients as to what to look for in investing in startups or building them. This will give us some context for the process that I employee using Plan HQ. Before I do this however I want to say that this philosophy comes from my experience in working with some amazing people on some amazing deals and from a lot of reading over years. Not much of what I do is really new, most of it is a mash of great thinkers and authors ideas, concepts and teachings. However, what I do think is of unique and of great value is the experience that each one of us can bring to implementing this and other philosophies to this process. Philosophies, most importantly that have been honed by all of our years of education in the school of hard knocks. :-)
Philosophical Business Context: (The 5 must haves in order of importance)
- Clarity - being very clear on what we want to accomplish as opposed to what we think we want to accomplish. (Huh??)
- People- We must be able to identify who we need and not what we need.
- Working Plan - Measurable.
- Cash - Fuel to establish and grow.
- Balance - PLWYMPYF (Personally Live Within Your Means, Pay Yourself First).
1. Clarity: Most often the reason we are doing a startup is not the reason we think we are doing a startup. Ultimately this leads to conflicting values, directions and decisions. I imagine we can all identify with the story of a friend or a colleague who came to us and said that he was wanting to start a company or buy a particular business. Then, when asked why he or she wants to do that, the answer becomes, long(ish), justified(ish) and complex in logic. This is the first sign that the person is 1.) Not being honest as to why they want to start the company or buy a particular business 2.) Not clear at all as to why they really want to take on the endeavor in question, or 3.) A combination of 1 and 2. I am adamant on this point when looking at deals or working with clients. "If someone cannot answer why they are starting or buying a particular company and why it makes sense in 10 words or less they are either lying, ignorant or both." -Chell
The best tool I have come across to gain clarity on a project is a series of 6 questions outlined by Patrick Lencioni in his book Obsessions Of An Extraordinary Executive.
The six questions are:
- Why does the organization exist and what difference does it make in the world?
- What behavioral values are irreplaceable and fundamental? (I find that three is as many as you can have with out diluting what is important to you. The best way to answer this is to look at the person in your organization or the role model you have in building the start up and ask yourself what are the three most recognizable traits that person has. This will more likely than not will represent the in some form the three top values that are irreplaceable for you and fundamental to your business success.)
- What business are we in, and against whom do we compete?
- How Does our Approach differ from that of our competition? (This is also known as your Overt Benefit. Doug Haul, Jump start Your Business Brain).
- What are your goals this month, this quarter, this year, next year, five years from now? (Thematic goals and Strategic goals. I like to break it up that you have one thematic goal for each time frame above and then three strategic goals that support each of the thematic goals. The strategic goals could also be viewed as the top three objectives required to obtain the thematic goal.)
- Who has to do what to achieve our goals for this month, this quarter, this year, next year, five years from now?
You will notice that my first posts on this Blog are are posts answering these questions. The most important aspect of a startup is clarity so in everything I do I start with getting clear by answering the above six or very similar questions. FYI, I use this approach not just for building a business plan or investing in a startup. I use this 6 question process for any endeavor I am considering taking on in my life.
Answering these 6 questions will get you clear on why you want to do something and not why you think you want to do something. Quite often after answering these questions if you are honest with yourself you will come to the conclusion that why you are doing what you want to do just is not compelling enough to be successful. Conversely, you may also find that it is more compelling than what you originally thought and for different reasons than you thought. These 6 questions are one of the most powerful business tools available. If you are honest and thorough they are very tough questions and can take a full day or more to answer even for a simple plan or project.
If you are signed up for the PlanHQ process you will see that I have created a GOAL called Corporate Clarity. I have made me responsible for the Goal. I then have created an action called attach/post in the Corporate Clarity Goal the six clarity questions for for people to answer and attach their responses back. I then have given a due date for the questions to be answered back in draft and then another action for a final version of the questions to be posted once I have any feedback from the Business Builders, (you) drafts. All of you should have received an email from PlanHQ alerting you to my updates in PlanHQ.
Saturday, April 11, 2009
On week until we start with PlanHQ
Friday, April 3, 2009
Lets Make A Plan
PlanHQ is a web based business plan tool that turns your static document and spreadsheet into a dynamic and up-to-date overview of where you’re going and how you’re tracking.
With PlanHQ, your business plan changes as your business changes, not just once or twice a year. Your whole team is actively involved in creating and actioning your plan and can align and prioritize all their work against company goals. This means that everyone is always working to plan and ensures you achieve your goals.
Who is PlanHQ for?
Entrepreneurs: Keep your multiple ventures on track. Startups: Turn your ideas into a fully functioning business.Growing Businesses: Set, update and monitor goals as your business grows.Investors/VC’s: Easily track your portfolio companies at any time.Business Coaches: Play an active role in implementing your advice.
When you use PlanHQ:
Planning is a process, not an outcome
Your entire team is involved in achieving your plan
Your plan TELLS YOU what needs doing and what’s changed
Strategic goals result in immediate actions
You can track progress towards achieving your goals
Wednesday, April 1, 2009
A great site to check out www.killerstartup.com
Monday, March 23, 2009
How does the approach of this blog differ from that of other blogs in the best practices arena of venture capital?
Thursday, March 19, 2009
What Business is this Blog in and aganist whom does it compete?
This blog competes with any other blog looking to build credibility with and garner the trusted attention of Venture Capital and Angle Investors.
Monday, March 16, 2009
Top Two Operational Values of A Start up
I will give you the top two values I have seen in a successful startup. I would give you three but I only have time to write about two of them this afternoon.
1.) Trust. Everything in a startup comes back to trust. If you are trying to attract a new or your first customer, if you are raising capital, if you are recruiting talent or any other aspect of what you are doing in a startup comes down to trust. In a startup you are doing something new or different in some form. It is a risk to not do the “norm”, regardless of the potential cost or time saving or what ever efficiency or cool factor you offer by dealing with you - you are a startup you are a risk in some form. Trust is everything and it is made up of two factors i.) Competence. ii.) Character. A great resource regarding this value of trust and the economics of it is Stephen Covey Jr.'s book Speed of Trust.
2.) The Second Value is something I call "Clarherence" . This is really two values that are interdependent on each other. The first is Clarity. I take my startup clients through a 6 question clarity exercise. By the end of this exercise the startup knows exactly who and what its differentiator is and what it must focus on, (LASER FOCUS!). The second value is Adherence. Adherence is similar to focus but different in the fact that it attaches to something more specific than focus. For Example; Focus is usually a reference point for entrepreneurs to stay with only one deal or stay focused in or on one industry. Adherence by contrast will attach specifically to the clarity questions/answers or exercise. Adherence will then allow you to build an operational plan that actually builds and supports a culture based not just on a vision which is usually vague and unattainable but rather on the clarity of the vision which is specific and executable. Clarherence is the secret sauce of culture, (more on this in some upcoming writings). The best resource I have found for clarity is Patrick Lencioni's book The Four Obsessions Of An Extraordinary Executive.
Sunday, March 15, 2009
Behavioral Values
In my view there are three fundamental values required in order to fulfill this blogs stated purpose.
1. Adherence. Containing the scope of posts and discussion within the purpose of the blog.
2. Open Minded Risk. Allowing posts, comments and all interaction to not have to be the "right" answer but opinions, views and/or insights of how build a sustainable startup.
3. Consistency. The timing and nature of the posts, comments, discussion and interaction must be such that it not only engages people but keeps them engaged in an ever more passionate manner.