Search results
54 results found.
54 results found.
Pythagoras coined the word philosopher to describe himself as a “lover of wisdom.”
Back and Out Again is Mark Morgan Ford’s first collection of poetry – the product of a three-year challenge to write a poem a day. With a willingness to put quantity above quality, he explored dozens of established and some novel approaches to rhyme, rhythm, and form. The subjects ranged from mythology to politics to death to the complexities of human relationships. Of the roughly thousand poems written, these are 91 of his editor’s picks.
CB recently wrote to me about one of his superstars – a promising young (23-year-old) copywriter who has already contributed many great ideas to the business. In fact, he’s so good, that CB is worried about losing him.
“I’m giving this young man the training courses he thinks will help him and the company, giving him autonomy in content, web design, and other projects, and helping him find ways to generate more income,” CB said. “But how do I continue to support him?”
Here’s what I told him…
That’s a very good question.
It’s so important that I’ve written about it many times over the years. And I’m thinking about it right now because I’m involved in an imbroglio over one of Agora’s top marketers leaving one franchise to join another. He’s leaving because the publishers did not listen to the following advice:
Extreme Value…
Recognize the value of your superstars. You can populate your business with good and great employees if you put the work into it and create the right environment. But superstars – they are rare. A superstar is worth 5-10 great employees.
Risky Business…
Recognize the fact that you cannot hide them from the competition. I can’t tell you how many times I’ve seen very smart CEOs try to do this. It works for a while. Then one day a competitor discovers them and makes them an offer that is way above what they are making. When that happens, you are screwed. You can offer to meet or even beat the new offer, and you might even retain that superstar. But he/she will never trust you and always resent you.
The Hook…
Understand what motivates them. Superstars are not motivated primarily by money. Nor is praise a sufficient reward. What superstars want and need most of all is the opportunity – the freedom and the support – to accomplish great things. That is what makes an otherwise great employee a superstar.
The Game Plan…
Compensate them strategically. Money is not the primary motivation, but money matters. Superstars should be paid a base plus incentive compensation. The base should be just above (maybe 5%) what someone else would offer them to do the same job. (And by that, I mean someone else that recognized their value.) The incentive compensation should be structured so that they could make a shitload of money – even more than you. But it should never be so much that they are getting more than they clearly deserve.
The Trap…
Don’t overcompensate. This last point is complicated. It’s easy to overcompensate people with incentive plans. And when you do, you can spoil them to the point where you will have to let them go. I don’t have time now to get into all of that. But in this case, since the young man is a copywriter, the challenge is easier to meet because there are existing formulas that work. You are probably familiar with them. If not, I can send you some examples.
One Final Thing…
Despite what I’ve said, when your business is relatively small (as yours is), you may not be able to compete with the sort of compensation he could get at a company like Agora. Even if you gave him the same base (say, $80,000), it would be nearly impossible for him to make the same incentive compensation with you because your file size and revenues are too small.
Instead, you have to make him feel like he is working for a good business that is doing good. From what I’ve seen, you are already doing this. In fact, I’m sure you are already doing much if not all of what I’ve suggested above. But I thought I’d write it down this way so I could publish it in my blog and kill two birds with one stone!
Imbroglio (noun) – An imbroglio (im-BROHL-yoh) is an intricate and perplexing state of affairs; a complicated or difficult situation. As I used it today: “[Right now] I’m involved in an imbroglio over one of Agora’s top marketers leaving one franchise to join another.”
Saturday, November 3, 2018
New York City.- I’m at Club Macanudo on 63rd Street, in between Park and Madison in NYC. It’s a stately, turn-of-last century townhouse, not unlike Agora’s offices in Baltimore.
The doorman greets me as I enter… like I’m a regular customer. I consider sitting at the oak and glass bar, but it looks a bit busy. So I advance to one of the cigar rooms, past a dining room where men and women are enjoying steak dinners.
I sit down in one of the comfortable leather chairs and order a Smoke & Fire cocktail. “I don’t need the cigar menu,” I tell the server. “I’ve brought something special of my own.”
The lighting is soft. The air is surprisingly fresh, despite the fact that there are about 30 men in the room and they are all smoking. They are mostly middle-aged, but there are some youngsters and a smattering of older men like me. Everyone seems unusually relaxed. No one is working. No one is on the phone. They are smoking and drinking and conversing. I feel like I belong. I’m not an intruder. I’m not an imposter. I’ve earned this.
And there’s more…
Tomorrow morning at 8:30 I will have a private Brazilian Jiu Jitsu (BJJ) lesson from Marcel Garcia, one the world’s most celebrated world champions. I’m pretty excited about it. It’s not easy to get a roll with MG. I’ve known his head instructor, Paul Shreiner, for a couple of years. He hooked me up. I can’t wait to tell one of my BJJ buddies back in Delray Beach about this experience.
I’ll be back at the hotel by 10:30 and I’ll get in an hour or two of writing before K returns from her morning walk. We’ll spend the afternoon at the Met and visiting a midtown art dealer I’ve worked with in the past. He has a 1905 Andre Derain landscape that I’ve been jealously following for nearly 15 years. Maybe tomorrow will be the day I own it. Dinner will be at a favorite restaurant in Brooklyn Heights with Number One Son and Daughter-in-Law and their twin girls.
Wow! How did I get so lucky?
I remember what my partner said to a young man who came up to him at a business event and introduced himself. “I so admire everything you’ve achieved in your life,” the young man said. “Someday, if I’m lucky…”
Smiling, my partner interrupted him. “You get to work at 7 a.m. and go back home at 7 p.m.,” he said. “You do that six or seven days a week for 40 years and the luck takes care of itself.”
Wednesday, October 10, 2018
Berlin, Germany– The first time I put on one of these forums in 2014, it was a great success. It was an open conversation between one of our most successful US-based marketers with a dozen of our marketing directors from all around the world. Everyone came eager to learn. And they did. I took copious notes myself
But 15 minutes into this morning’s presentation, I knew that it was time for a change. Because of the success of the past three forums, attendance had more than tripled to 40 people. As a result, the room had to be arranged seating style (rather than as a single roundtable), and the presentation was no longer an intimate conversation but a lecture.
After the first break, I asked a few of the attendees what they thought. “It’s really good,” everyone said. But I knew they didn’t mean it.
“But did you think it was a little boring?” I said.
“Yes, it was a bit,” they agreed. And this time I could see that they meant it.
There are two basic ways of responding to change:
If one has an ego-investment in the status quo, the tendency toward resistance will greater. And since this forum was my idea, I could hear the hard side of my brain telling me to ignore the Elephant of Boredom standing in the room. “These people are not bored,” it was saying. “They just look bored. You’re paranoid.”
But as 15 minutes turned into an hour and then three hours, even this part of my brain could not deny the factual details: the postures, the droopy eyelids, the clicking and clattering of cell phones and tablets and laptops.
“Okay,” my hard brain admitted. “They are bored. But it’s not because of the format. It’s because of the attendees.”
“Pearls before swine!” my hard brain shouted.
Change is difficult for business. And for a good reason: It opens the door to chaos. It lets in not only light and air but also the possibility of stormy weather. It can result in the disintegration or even the destruction of programs and protocols that have worked perfectly well for years.
In other words, change is not, as some believe, an intrinsically good thing. Like atomic energy, it can be good or it can be terrible. And that’s why people – including very smart people – tend to resist it.
But here’s a fact every experienced entrepreneur knows: When businesses grow, things change. And when things change, businesses must adapt.
So although my hard brain wanted to blame the attendees for the boredom that I was witnessing, my soft brain was whispering: “Don’t kid yourself. They are bored. And the problem is this format of yours. It worked well for three years, but it’s no longer working. If you want this meeting to go well, you have to change it.”
So we changed the format – both the physical arrangement of the seating and the structure of the presentations – and the vitality of the second half of the week was much improved. More voices were heard. Eyes were focused on whoever was speaking. The fidgeting with phones diminished. And the questions at the end of each two-hour session were good and earnest.
If it’s not already evident, making these changes quickly had two positive effects. It made the presentations stronger and better received. But it also made me feel good about myself, since I had accepted the need for change instead of resisting it.
I learned how to do this 20 some years ago when I first went to work with Agora Publishing. About six months into it, I recommended a marketing idea that bombed. I felt terrible about it. So terrible that I insisted on paying the company the $70,000 it lost on MY idea. Some months after that, we lost as much or more on an idea Bill had. Looking at the results for the first time, we were both shocked at how badly it had done. I expected him to carry the same guilt I had with my idea. Instead, he smiled and shrugged and said something I’ll never forget. He said, “Gee, I guess that wasn’t such a good idea after all!”
That was one of the best experiences I’ve ever had in business. It helped me understand, almost instantly, the freedom that comes with separating your ego from your work. In the years since, I’ve coached into action countless ideas that didn’t pan out. And each time that happened, I repeated Bill’s words: “I guess that wasn’t such a good idea.”
The challenge when facing the need for change, especially when what needs to change is your idea, is to tune into that soft side of your brain. And the only way to do that is to reduce your ego attachment to the idea.
I’ve never been able to detach completely from my own ideas, but I’ve made progress. And that’s been helpful.
The next time you introduce a successful idea into your business, give yourself a day or two to feel good about it. Then mentally kiss it goodbye. Let the idea become the property of the business by desisting from referring to it as “my” idea. Talk about it as if it is the idea of everyone involved. And give credit to everyone that helps realize it.
Of course, that means you get less glory when the idea is working. But the benefit is that the hard part of your brain will be less resistant to recognizing and accepting the problem and coming up with a new solution.
Change is difficult, but it’s necessary. When your business is growing at a moderate rate, a need for change will likely be years apart. But when growth is fast, as it often is with entrepreneurial companies, you might have to recognize (and suggest) the need for change as frequently as every six months.
I am sometimes asked – and I don’t know why – what course of study I recommend for college students wishing to become successful in business. My answer usually provokes skepticism if not scorn. I recommend liberal arts.
In the age of the Internet and the new economy, specialized technical knowledge is revered. Most of those who ask my opinion figure I’m going to say something like “computer programming” or “communications engineering.” In fact, I think that type of education is the least likely to put you at the top of your field – either as an entrepreneur or as a corporate climber.
There are several reasons.
First, technical knowledge is temporary. The trendier the technology, the faster it changes. What you learn now will become less true as time goes on. Eventually, it will be obsolete.
Plus, technical majors take a lot of time. The typical engineering student – if he aims to get into a good graduate school – must use up most if not all of his credits on subjects that only a fellow techie would even begin to understand. All that specialization leaves little time for “softer” skills like reading, writing, and thinking. And virtually no time for hanging around and having fun.
But the main reason I advise against a technical major is that technical workers have secondary roles in business. In How to Become CEO, Jeffrey Fox distinguishes between “staff jobs” (which make a business work) and “line jobs” (which make a business profitable). He says that in most companies “most of the people are either in administration or field sales. Administrative people are not bad, or untalented, but they are not on the cutting edge. The company doesn’t depend on them.”
I made this point to FS just the other day. He had the idea that he would “do better” in business if he majored in computer sciences or some such “high-tech” major – even though he didn’t especially like that course of study.
From what I’ve seen in business, I told him, staff people (and I’d include all technical people in this category) are unfairly but often viewed as:
Good line employees, on the other hand, are seen as:
Now let’s look at the other side. What’s so good about liberal arts?
A liberal arts education teaches you three skills: to think well, to write well, and to speak well. And in the corporate world – and in the entrepreneurial world as well – wealth is created by analyzing problems, figuring out solutions, and selling those solutions. In other words, a liberal arts education is tailor-made to give you the skills you need to succeed in business. And not just to do well. I’m talking about going all the way to the top.
Businesses have one fundamental problem that presents itself endlessly in different disguises: how to sell products/services profitably. There are many, many solutions to this problem. Even in a specific situation on a specific day, there is always more than one. And the person who can regularly come up with solutions – and convince others that his solutions should be implemented – is the person who is going to get the rewards. The money. The power. The prestige.
Yes, you can improve your thinking, writing, and speaking skills while enrolled in a technical curriculum. But it will happen indirectly and additionally. It won’t be what you are mainly concerned with. With a liberal arts education, you ensure that you will spend most of your time learning and practicing the very skills you will use later to get your ideas and solutions sold.
I’m not criticizing technical people. They are very valuable. I’m simply saying that if your goal is to get to the top of any organization, public or private, you need to be a very good thinker, writer, and speaker. And a liberal arts education is designed to help you with that.
I’ve known very successful business leaders that did not have a liberal arts education. The CEO of Agora, a billion-dollar company I consult with, is one. He was educated in accounting and worked his way up to CFO. But he was smart enough to see that he had reached the end of that line. So he gradually moved his way into discussions about marketing and sales and product development. Eventually, he became a very good thinker and speaker on these issues. And when it came time to appoint a new CEO, he was the logical choice.
During my trip to South Africa and Australia last year, my business partner Bill Bonner and I had a conversation that should interest you. For those of you who don’t know, Bill and I worked together to found Agora publishing.
We were speaking about our company’s future. Right now, Agora is a $400-plus million publishing business with high profitability and good growth. By any conventional standards, it is a great business. But Bill is not satisfied. His goal is to make Agora a business that will last a hundred years. Very few businesses are able to do that.
To accomplish Bill’s goal, Agora will have to develop what Warren Buffet calls a “long-term, durable competitive advantage.”
Coca-Cola is a perfect example of what I’m talking about. Coca-Cola has been selling the same product since 1892. It spent money inventing its core product over one hundred years ago. Today, it spends very little money on research and development. It also has low manufacturing costs, since the machinery required to make Coke rarely needs updating.
These factors give Coca-Cola a big, long-term advantage. They can devote all the money they don’t spend on research, development, and manufacturing to marketing. That is how Coca-Cola stays way ahead of its competition.
This got me thinking about investing. Coca-Cola is one of the companies that Warren Buffet invested in many years ago. After losing money by investing in some speculative opportunities, Buffett realized he would be much better off investing in businesses that were more established and had distinct competitive advantages—businesses like Coca-Cola, Kraft Foods, and American Express. Berkshire Hathaway, his holding company, owns these kinds of companies. He buys them and holds them. If their share prices drop, he doesn’t sell them. He buys more shares. His goal is not year-by-year profits, but owning more and more shares of great companies.
This strategy is very different from what most professional investors use. Yet, it works. In fact, it works very well. Everyone acknowledges that Buffet is the most successful investor in history.
I met Ken in 1976 when I was teaching English literature at the University of Chad in N’djamena, Chad. Ken was also on the faculty teaching American literature.
After my stint Kathy and I moved to Washington DC where I worked as an editor for a publishing business. Ken returned the next year and I found him work as an editor and proofreader. When I relocated to South Florida in 1982 the first person I hired was Ken. He arrived by Greyhound Bus looking — well, you know how Ken often looked.
I took him right to JC Penny’s and bought him three new sets of clothes including three clip-on ties. The next night I helped him find an apartment within walking distance from our offices. For the next five years Ken worked as he always worked: punctually and punctiliously. He was one of about five editors and proofreaders we employed. One of them was, like Ken, an ex-college professor. Another had edited the Chicago Style manual. Ken enjoyed the camaraderie of his colleagues. Back then language correctors like Ken were vital and necessary. This was long before personal computers and spell check programs.
When we sold the Oxford Club to Agora Ken came along as part of the package. I knew he preferred city living to life in the Florida suburbs and he told me later that he was very happy to be living in downtown Baltimore within walking distance of work and his favorite theater on Charles Street and within reach of the ballpark and the library.
Ken was always a very private person. Although we spent lots of time going to movies and arguing about them over beers, I never was able to pry any information about his past. I heard that he was a professor at a university in Missouri and had once been married. He confirmed those two facts but never told me another detail.
Ken was extremely bright and well educated. But during our friendship his intelligence was applied only to movies (he was interested in anything tagged as “grim, stark and depressing,” he once told me) and sports (about which I know nothing) and less frequently about literature and English grammar. Still I always considered him a good friend and I think he felt the same way about me.
During the years I was commuting to Baltimore Ken was part of a very exclusive movie club that met once a week. After I moved to Florida we saw one another only occasionally but when we did it was always cordial and private, just as it had always been.
When Jenny Thompson told me that Ken had lung cancer I came up to visit him and try to persuade him to spend whatever time he had living in our guest cottage where he could be taken care and surrounded by friends of his, the former members of the Florida movie club from so many years ago. If you know Ken you won’t be surprised to learn that he was very agitated by the suggestion. It was way too much of a change for him. He had his own plans — to get him admitted into a hospice that Jenny had mentioned to him. He was equally insistent that he didn’t want chemotherapy. “I’m well beyond seventy,” he told me. (That was the first time he had ever mentioned his age and it was not more specific than that) and I’ve had a good enough life,” he said. “I want to do this my way,” he said.
He had — and those of you who know Ken will also appreciate this — a carefully handwritten, eight page treatise which he handed me that provided all the reasons why I should not try to talk him into moving to Florida or having chemotherapy. All his reasons, not unexpectedly, were sound and beautifully expressed. All except one. One of the eight or ten reasons he didn’t want to undergo chemotherapy was that he had “heard that it could make you lose your hair.” As he was reading this sentence to me I couldn’t help but gaze amazedly at the wild outcropping of gray hair mixed with bald patches that constituted his hairstyle that day. But I didn’t argue. There was never any advantage to be had from arguing with Ken.
Last week Alice, who had been kindly taking care of Ken, told me that he was in the hospital after suffering burns and smoke inhalation. His apartment somehow had caught fire. I’ll never know whether the fire was an accident or Ken was just tired of waiting. But he died within a week’s time, which I think he was ready for. Jenny stopped by to see him in the burn unit. She told me he was disconcerted to have visitors but kissed her hand gently and then told her to be damn sure nobody else comes by to bother him.
One final anecdote: in one of my visits with Ken I was attempting to help organize his estate, such as it was. He had, through Agora, a nice sized retirement fund, which he had directed to two old friends from Missouri. So that was fine. He told me he wanted to give me something but the only thing he had was the cash in his savings account that, he said, would be too trifling for “a man of your means.” I told him I thought he should give it to his two friends and he agreed. But the process was very complicated. He would have had to take a trip to the bank that he adamantly refused to do. I figured I would just tell him I had taken care of it and send the money — I figured it couldn’t have been more than a thousand dollars — to his friends and that would be the end of it. Just to be sure I asked him how much he had in the bank. “How the hell do I know?” he shouted. “I put money in there and I pay my bills!” I spent about a half hour sorting through the reams and reams of papers and magazines and bills that filled his living room and found a recent bank statement at last. His account had something like $150,000 in it.
Intelligent strategies for starting and growing a small business with minimal personal financial risk
A comprehensive guide for entrepreneurs from one of the most successful business creators in recent years, The Reluctant Entrepreneur: Turning Dreams into Profits addresses the fears and misconceptions that many people have about starting their own businesses, walking prospective owners through the necessary decisions they need to make before even putting a business plan in place.
Presenting solid, reliable strategies based on author Michael Masterson’s own successful practices, and debunking some common illusions entrepreneurs have about their businesses, the book is a vital resource for anyone looking to avoid the pitfalls that threaten fledgling companies.
Essential reading for small business owners and both first time and established entrepreneurs, The Reluctant Entrepreneur presents the smart strategies on starting and growing a small business that can make launching your own company a cinch.
Click here to order today!