Business Perspectives for Creative Leaders part 3 of 7
Ok, wow. I’m pumped.
Today was better than I had expected. Knowledge is power. At least, it feels like I’ve just acquired a super power and I’m ready to lift Go Media over my head and carry it up to the promise land. Here are a few brief thoughts on my first day of classes:
The course is very aptly named. As you’ll read shortly, they are really teaching us new ways to look at our business. These new perspectives empower you to have radical insights into how you could improve your company. So, they don’t tell you: “Here is the formula for your business, now go apply it.” Instead they say: “Here is a new way to look at your situation. What do you see?”
The information is incredibly pragmatic. I had a few fears coming into this course. One was that they were going to be teaching us highly theoretical concepts that were not easy to apply at Go Media. Not so. Not only was the information incredibly applicable, they were even very respectful of the realities of life. For instance, they might follow up a concept by saying: “Of course, business is a constantly evolving science. This concept might be applicable now, but fall apart in a year. You need to be constantly vigilant in listening to the market and finding what works.” Also, they frequently said: “This is the concept you’re working towards. But I don’t have to pay your bills. We understand that this is a process.” I appreciated that level of humility and candor. They gave many examples of failed businesses and would say: “And these were well funded, incredibly intelligent people!” It’s just nice to hear a Yale professor basically say: “Hey, business is tough.”
The professors are amazing. They’re brilliant, funny and experienced. Another fear I had was that these professors would be “academics” with no real world experience. I was wrong on that too. Our two professors today had vast experience in the business world. Our second professor today, Barry Nalebuff, was the co-founder of Honest Tea (which he sold to Coca-Cola.) He was an adviser to the NBA in their recent player negotiations and he’s written six books – among other things. Basically, these professors are no joke. I wonder if I would have been an even better student if I had such brilliant professors growing up. I certainly appreciate them now!
The accommodations continue to be first-class all the way. Thank God I’m only here for a week. With food this good I’m sure I’m packing on the pounds fast. How can you pass up chocolate-dipped strawberries, organic brownies and chocolate mousse in an egg-shell. I mean seriously, this is ridiculous. Not only that, they continue to gift us. Today I got an embossed leather notebook. Even if I hated the lessons today (which obviously I didn’t) I would owe them a nice review based purely on the gifts they keep giving us!
I do have a few pictures, then let’s get to the stuff you REALLY care about – the knowledge!
The Beinecke Rare Book and Manuscript Library. Yesterday I posted a picture of the outside of this funky building. Yes, those are translucent marble walls. Let me say it again; r-i-d-i-c-u-l-o-u-s!
This is the Yale Commons dining hall – used in the Harry Potter movie!
This is a mirror in The Study Hotel. I SWEAR they put these flattering mirrors in hotels. They are warped just enough to make the viewer look taller (skinnier) than they actually are. It’s brilliant. Every time I’m waiting for an elevator I’m staring into the mirror thinking: “Well, alright! I think I’ve lost a few pounds.” But deep down I know it’s just a lie.
Now, before I share this information with you, let me just say; There is no way I will possibly be able to recap all the wisdom that was taught to me today. I won’t even try. Also, I need to have a certain respect for the work that has gone into this course. It wouldn’t be fair for me to publish all the slides I’ve been provided or copy the text verbatim. So, I’m going to do my best to sum up some of the concepts in my own words. And hopefully, you’ll be able to explore them further and put them to use.
Some wisdom from my classes in no specific order:
There was a great emphasis put on getting to know and understand your customer. What is actually valuable to them? Why didn’t they hire you? I know we all THINK we know what our customers want. But do we really? When a client does not accept your proposal do you offer to take them out to lunch so you can ask them what specifically made them hire a different firm/designer? It’s not always easy to get this information from clients. So, that’s your challenge. How do you do a better job getting feedback. Why do they hire you? What are their needs? How can you improve your company? It is the CUSTOMER that determines what the business is.
You can decide who you want to work for and target them. But do you really know who you want to work for? Who is your ideal customer. It’s easy to think: “Well, I want to work for NIKE!” But in the real-world what are the true implications of working with Nike? Will you get to do branding? Will you have lots of creative control? Will it be a bureaucratic free experience? Probably not! Maybe a small start-up is actually a better customer. Do a pros and cons analysis and think about who your true ideal client is, not your perceived ideal client.
Keep your value proposition short. It’s called “resonating focus.” You determine 2-3 of the MOST IMPORTANT values to your customer and focus on those. Creating long lists of benefits or attributes of your company or product will only dilute your sales pitch. Again, this requires research! You have got to get to know your customer.
When making decisions, you should always consider the lifetime value of a customer. If you’re focused on the profitability of one project, you’ve got the wrong perspective. You must identify your very best customers and treat them like gold – even if that means losing some money in the short term.
When trying to build your customer base, don’t waste your time trying to sell your services to non-customers. Instead, try to focus on selling more to your existing customers. It’s always cheaper to up-sell an existing client than it is to get a new customer.
When thinking about growing your business, it’s easy to focus on trying to steal a bigger piece of the “pie” from your competitors. Here’s another thought: make the pie bigger! Sometimes your competitors are also your complementors. It’s a grey world! Don’t assume you need to defeat your competitors in order to grow your business. A good example is two bars located next to each other. Are they competitors? Of course. But they also complement each other. Bar goers like to “bar hop.” They can’t bar hop if there is only one bar! These bars might want to get together to open a third bar. Now people can bar hop even better. The net result is that more people will come to their bars because they’ve build a bar district. They’ve worked together to increase the value of both of their bars. They’ve made a bigger pie! Consider what businesses complement yours. Figure out how to leverage that to grow the pie!
Professional Services marketing by Mike Shultz and John Doerr
Co-opetition by Barry Nalebuff
The Art of Strategy by Barry Nalebuff
Ok, so, I think I’ve given you enough to think about for one day. Find a dark room and ponder these questions. I better get some more reading done before I hit the sheets.