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You are here: Home / Archives for 5 - Industries

The Critical Role of Guiding Beliefs for Any Organization

July 10, 2009 by Matt Perman

Tom Peters writes in his classic In Search of Excellence:

Every excellent company we studied is clear on what it stands for, and takes the process of value shaping seriously. In fact, we wonder whether it is possible to be an excellent company without clarity on values and without having the right sorts of values.

Thomas Watson, Jr., of IBM, wrote an entire book on this long ago in which he summarizes what Peters (and, later, Jim Collins in Built to Last: Successful Habits of Visionary Companies) found to be true of all excellent companies: in order to be an excellent company (and an enduring one), the company must be founded on a coherent set of foundational beliefs. There must be a “core.”

The core is unchanging. Everything other than the core is open to constant change. As Collins points out, the single guiding principle for managing an organization is therefore this: preserve the core and stimulate progress.

Here is how Watson put it in his classic work A Business and Its Beliefs:

One may speculate at length as to the cause of the decline and fall of a corporation. Technology, changing tastes, changing fashions, all play a part. … No one can dispute their importance. But I question whether they in themselves are decisive.

I believe the real difference between success and failure in a corporation can very often be traced to the question of how well the organization brings out the great energies and talents of its people. What does it do to help these people find common cause with each other? And how can it sustain this common cause and sense of direction through the many changes which take place from one generation to another?

Consider any great organization — one that has lasted over the years — and I think you will find that it owes its resiliency not to its form of organization or administrative skills, but to the power of whqt we call beliefs and the appeal these beliefs have for its people.

This then is my thesis: I firmly believe that any organization, in order to survive and achieve success, must have a sound set of beliefs on which it premises all its policies and actions. Next, I believe that the most important single factor in corporate success is faithful adherence to those beliefs. And, finally, I believe if an organization is to meet the challenge of a changing world, it must be prepared to change everything about itself except those beliefs as it moves through corporate life.

In other words, the basic philosophy, spirit, and drive of an organization have far more to do with its relative achievements than do technological or economic resources, organizational structure, innovation, and timing. All of these things weigh heavily in success. But they are, I think, transcended by how strongly the people in the organization believe in its basic precepts and how faithfully they carry them out. (Cited in In Search of Excellence, 280.)

Filed Under: Business Philosophy

Gladwell Reviews Free

July 8, 2009 by Matt Perman

Malcolm Gladwell reviews Chris Anderson’s new book Free: The Future of a Radical Price. (Chris Anderson is the editor of Wired and the author of the 2006 best-seller The Long Tail: Why the Future of Business is Selling Less of More.)

(HT: JT)

Filed Under: Business, New Economy

10 Stunning (and Useful) Stats About Twitter

July 7, 2009 by Matt Perman

This was a helpful article by Rohit Bhargava summarizing “10 standout conclusions” from a recent analytics report on Twitter by the media analytics company Sysomos.

One interesting fact: Tuesday is the best day to tweet something.

Filed Under: Social Media, Web Strategy

What's Not Best: Fake Real Handwriting

June 1, 2009 by Matt Perman

I received a mailing from a fundraising consulting company today advertising a new “cutting edge technology” that they can offer to their non–profit clients: a font that looks like real handwriting but in fact is not. In other words, fake real handwriting.

This is appalling. Why would a non-profit want to use this service? Plain and simple, the thinking behind this seems to be: “We can make your donors think that they are reading real handwriting so that they will feel that the message is more personal. Then, they might give more.”

If you could read the fake-real handwriting in the image above, you’d see this perspective come out as well. But you don’t have to read that to see it. What can the value be in fake-genuine handwriting (they are calling it “genuinely penned handwriting”) if the person knows that it was created by a machine?

If you know that a machine created it, then it no longer seems personal. So the purpose of this “genuinely penned” stuff seems to depend upon the person thinking it is real. But if you think that it is real, then your assessment of the “personal nature” of the writing is not based on reality. In which case, in a very real sense, you’ve been tricked.

Why do certain direct marketing companies — and, in turn, the non-profits who use and follow their consulting services — reduce themselves to such tactics?

This company is being added to my list of things that should not exist.

Filed Under: Non-Profit Management, What's Not Best

A New View on Non-Profits

May 1, 2009 by Matt Perman

Patrick Lencioni is one of the authors that I consistently find most helpful. His latest article [not yet online, but copied below] does an excellent job pointing out the false dichotomy that we often make between non-profits and for-profits.

We often think of non-profits as accepting “lower levels of accountability and productivity and rigor” than for-profits. On the other hand, we often see work at for-profits as failing to give people a sense of mission and failing to tap into their passion and idealism.

We need to reject this false dichotomy. Although it may often be this way, it doesn’t have to be.

I think that a new era has begun for non-profits. More and more people are realizing that a non-profit can be a place driven by an incredible mission while at the same time accomplishing that mission with excellence, discipline, and remarkable innovation. As a result, more and more talented people are realizing that they can go into the non-profit sector to make an impact on the world without sacrificing excellence in their work. And as a result of that, the work of non-profits is becoming even more innovative and excellent — thus resulting in an even greater impact for good.

In fact, Jim Collins writes in his monograph Good to Great and the Social Sectors, “Social sector organizations increasingly look to business for leadership models and talent, yet I suspect we will find more true leadership in the social sectors than the business sector” (p. 12). Why? Because “the practice of leadership is not the same as the exercise of power.” Social sector executives have to rely more on influence than power to get things done, and therefore the social sector environment provides a significant catalyst to the development of leadership.

So a new day has dawned for non-profits — an era where they are seen as a place that satisfies a person’s desire for both mission and excellence. And the result is that great things are being done and will be done.

When it comes to for-profits, we also need to reject the idea that their work is productive but not meaningful. For-profits, also, need to affirm and tap into their employee’s sense of purpose and mission.

This is happening more and more — and, interestingly, can happen in part through partnerships with innovative non-profit initiatives. But that’s not the only way it can happen. It is possible to see the work itself as meaningful and purposeful in its own right, and then also as connected to wider purposes for the good of the world.

As a result, whether in the for-profit sector or the social sector, we can and should have both a sense of mission and an outcome of excellence in our work.

Well, time to get to Lencioni’s article. Since it doesn’t look like it’s on his website yet, I’m copying it here in full:

[Read more…]

Filed Under: 4 - Management, Non-Profit Management

Facebook Connect

March 30, 2009 by Matt Perman

For those of you who haven’t yet informed yourself on what Facebook Connect is, here is a helpful summary.

Here’s the brief summary:

Facebook Connect is the next evolution of Facebook Platform, enabling you to integrate the power of Facebook Platform into your own site. Enable your users to:

  • Seamlessly “connect” their Facebook account and information with your site
  • Connect and find their friends who also use your site
  • Share information and actions on your site with their friends on Facebook

I think there are some very exciting things that will be happening because of this!

Filed Under: Technology

Playing it Safe is a Trap

March 25, 2009 by Matt Perman

Michael Gilbert had a helpful article last spring in Nonprofit Online News called Playing it Safe is a Trap: Five Syndromes in Online Marketing.

That’s a great title, and I’d say the concept applies to much of work and life — not just nonprofits and online marketing.

His five points in the article are:

  1. Seeking safety in best practices
  2. Seeking safety in the wrong metrics
  3. Seeking safety in self-promotion
  4. Seeking safety in cautious language
  5. Seeking safety in control

Here are a few helpful excerpts:

When it comes to communicating with their current and prospective stakeholders online, nonprofits will often choose the path that feels the safest to them. They do this in regard to their methods, their metrics, their language, their content, and their management practices. I argue that such a choice is anything but safe and indeed is responsible for some of the most serious and common mistakes that a nonprofit can make.

….

Ultimately, we seek to control things that needn’t be controlled, in our desire to avoid the uncertainties that come with the kind of communication practices that truly light a fire in people. Indeed, we are simply afraid to light that fire because at some point it will no longer be in our control. We set up time consuming approval processes, elaborate branding requirements, and many other mechanisms to ensure that the communication of our staff and our stakeholders all remains firmly managed. Even our notion of “viral marketing” tends to involve setting things up to encourage our stakeholders to do exactly what we tell them to do.

This is not the place to describe the alternatives to these fear avoidance tactics. (Indeed, I sometimes feel like all our other work is about such alternatives.) But it’s important to note that the alternative isn’t just random risk taking. That’s a straw man that we set up to justify our actions. The overarching alternative is simply to practice letting go, a bit at a time. The more we allow anxiety and fear to guide our decisions, the more power we give them and the harder it is to break free. Breaking these five patterns is a good place to start.

Filed Under: Non-Profit Management

Where Social Networking is Going

March 8, 2009 by Matt Perman

TechCrunchIT has a good Q&A on the social web with Google’s Kevin Marks. Right away, his comments on the first question are very significant:

Q: We keep hearing that “Google wants to make the web more social.” What does that mean?

Everything on the web is more interesting when it takes place with friends. Today’s social networking sites are the online contexts where you and your friends go to be social, and the time we spend on them shows the attraction.

But the model of going to a single website to interact with other people is changing. In the future, we expect everything on the web will become more social, augmenting the many things you already do on the web. Whether you’re shopping, deciding what to read, or researching a topic, knowing what your friends, or family, or the people you respect think about that product, book, or source of information is a vital part of the web.

I call this the “social cloud,” meaning that “social” will be integrated with the web so that you don’t think about it anymore. Charlene Li calls this same idea “social networks become like air.” The web itself is like this — following links seems like second nature to us because we know a URL can take us anywhere. Social isn’t there yet, but that’s the highest level goal of the OpenSocial project — to make interacting with people a natural part of how we use the web.

Read the whole thing.

Filed Under: Social Media, Web Strategy

Your Organization's Purpose Matters More Than Ever

February 13, 2009 by Matt Perman

Also in the latest Gallup Management Journal is an interview with Roy Spence called Your Company’s Purpose Matters Now. Its point is that “in this rough economic climate, it’s more critical than ever that you and your customers know why your company is in business.”

Here are a few excerpts:

Purpose is not just a crucial differentiator; it’s the strategic structure that pulls companies through the worst of times. Companies should determine their purpose — “a definitive statement about the difference you are trying to make in the world,” Spence says — then craft their leadership, management, operations, strategy, and tactics to further that purpose. What’s more, a purpose-based approach simplifies many difficult decisions and makes an uncertain future easier to navigate. …

While everyone in corporate America is cutting costs and trying to stimulate new revenues, organizations that have a clear purpose won’t be looking for silver bullets or grasping at straws or just cutting cost with no clear focus. Instead, they will have more clarity in their cuts and more certainty on how to stimulate revenues. For example, though Wal-Mart and Southwest Airlines are going through this economic Armageddon like everyone else, they know that all cuts in cost must translate into lower prices so people can live better or into lower airfares so more people can go and see and do things. These are not just cuts for their own sake.

The article has a helpful illustration from Southwest Airlines of the centrality of purpose to creating real value for people.

Filed Under: b Vision, Business Philosophy

Now This is a Good Vision Statement

February 10, 2009 by Matt Perman

This is what Jeff Bezos said about the Kindle: Amazon’s Wireless Reading Device at a Monday press conference: “Our vision is every book ever printed in any language all available in 60 seconds.”

Here’s why that is a good vision:

  1. It’s simple.
  2. It’s clear.
  3. It takes things all the way: “every book ever printed in any language.” Yes! It’s not “most books” or “95% of books.” To be remarkable, you have to be bold and go the full distance. 95% does not inspire. But 100% — that’s amazing.
  4. Its fulfillment would be a tremendous service to the world.

Now, here’s something not so great:

Some publishers and agents expressed concern over a new, experimental feature that reads text aloud with a computer-generated voice.

“They don’t have the right to read a book out loud,” said Paul Aiken, executive director of the Authors Guild. “That’s an audio right, which is derivative under copyright law.”

Here we have a recommendation that the kibosh be put on a really great idea because “they don’t have the right to read a book out loud.” This is another example of how innovation is stifled and how good ideas get killed. Sure, there may be issues, but let’s figure them out. Let’s not point to process and say “well, this shouldn’t be done.”

What about the copyright law, though?

An Amazon spokesman noted the text-reading feature depends on text-to-speech technology, and that listeners won’t confuse it with the audiobook experience. Amazon owns Audible, a leading audiobook provider.

Wouldn’t it be interesting if the Kindle, or a device like it, could by means of this audio feature bring great access to books into societies with currently low literacy rates? In other words, such a device could perhaps make it possible for those who can’t read to still “read” some great books by listening to them via the text-to-speech technology. And what if everyone was given one?

Someone could say “well, you would run into problems with recharging those devices because electricity would probably not be reliable or available, and beyond that if the literacy rate is this low, probably food and water are higher priorities. Also, people just might not be interested in that.”

Well, good points. But the way forward is not to then stop and give up on the idea (whether this one or any other), but figure out if there is a way to do it which overcomes the obstacles. Maybe not. But don’t kill ideas too early. At the very least, exploring them could lead to something different, more workable — and better.

Filed Under: b Vision, Publishing, Technology

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Matt Perman started What’s Best Next in 2008 as a blog on God-centered productivity. It has now become an organization dedicated to helping you do work that matters.

Matt is the author of What’s Best Next: How the Gospel Transforms the Way You Get Things Done and a frequent speaker on leadership and productivity from a gospel-driven perspective. He has led the website teams at Desiring God and Made to Flourish, and is now director of career development at The King’s College NYC. He lives in Manhattan.

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