My quick video summary
From Youngme Moon, author of Different: Escaping the Competitive Herd
–99% of Business leaders think their product offering is different, yet most regular people(their customers) have difficulty seeing any difference. Products seem the same.
–Ask yourself this questions: if you went out of business tomorrow, where would your customers go and would they even miss you?
–There is no formula for being different. But every differentiated brand does the following: Says no to many of the benefits their competitors offer, and offers many things (saying yes) their competitors would never offer.
–Great case studies: IKEA and Mini Cooper.
–They turn negatives into personal positives for the customer. Their competitors turn positives into negatives
–‘Different’ brands provoke friction, an emotional reaction that focuses the customer’s decision.
–Deliberately push away groups of customers–not for everyone.
–The negative is where the “gold” is.
–Too many companies pay too much attention to competitors, ending up duplicating them
–Customers can tell you what they want, but can’t really tell you how to be different. When they tell you how to be better, they are telling you how to copy competitors. That’s why this is hard.
–Different and crazy look the same when you start. Give crazy time to incubate before criticizing it.
–Passion plays a big role in being different. Makes you mystical. It helps to have a culture of passion to be different.
Daniel Pink, Author of Drive:
–What most of us “know” about motivation is wrong. Based on Folklore and Intuition. Not Science.
–What we do to motivate our people actually hinders their motivation and hurts your business.
–If/Then compensation works well with repetitive mechanical like work.
–Works horribly with even Rudimentary Cognitive work. Most work today requires at least Rudimentary Cognitive Skills.
–If/Then compensation says to the employee that this is no longer their work and hinders creativity
–You must pay fairly. If compensation violates basic fairness the motivation game is over.
–You must pay people enough to take money off the table as a motivator. When they aren’t worrying about money they will think about their work and perform much better.
–Autonomy, Mastery and Purpose are the motivators.
–Management is a technology from 1850.
–When you ask people to describe their best bosses. They say “High Standards, and They game me “Freedom” to do the job. Not “He hovered over me and watched everything I did.”
–Autonomy can be synonymous with Accountability
–Mastery–Getting better at things is very motivating.
–Annual evaluations are awkward kubuki style events. Don’t measure progress
–You must increase the metabolism of your feedback.
–Purpose: Help people understand their contribution and the difference they make.
–Spend 2x more time on why than how.
–Sales commission: Higher base with profit sharing always works better. More collaboration. Customers like it better. See them as agents not sales people.
–People are not slightly taller, less smelly, biped donkeys, why do we treat them this way?
Alan Miltz–See my previous blog post from Monday. Covered the same material.
–But the key question is are you borrowing to fund growth or pay for waste?
Alexander Osterwalder–Business Model Generation. I’ve got to get his book.
–3 things business people don’t do well 1. discuss their business model. 2. Design their model. 3 Test them before they build them.
–He advocates the business model canvas. Draw the picture of it to discuss it and design it and test it. www.businessmodeltoolkit.com
–The temptation to quit comes right before your model starts succeeding.
Looking forward to today: And then coming home.