Why you need a business plan and how to develop one that leads to action not the dust bin.
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This podcast is 13 minutes 10 seconds long.
A transcript of the podcast is available in PDF download format here.
Why you need a business plan and how to develop one that leads to action not the dust bin.
This podcast is 13 minutes 10 seconds long.
A transcript of the podcast is available in PDF download format here.
Successful Intelligence: how practical and creative intelligence determine success in life by Robert J. Sternberg (NY: Penguin Putnam, 1997)
(download a PDF of this book review whitepaper)
Throughout my life I have been interested in intelligence, mine and that of others. From early years at Taft School where I was regularly described as a “gross underachiever” to later in my work life when I began to understand that “smarts” came in all shapes and sizes, intelligence has been an interesting issue. Who has it and how can you figure out what kind each person has?
Successful Intelligence (SI) presents an interesting addition to my own practical knowledge of intelligence and a further jumping-off point from Howard Gardner’s efforts in Frames of Mind: the theory of multiple intelligences.
The preface gives away the whole story. Let me quote a bit:
“Successful intelligence is the kind of intelligence used to achieve important goals. People who succeed, whether by their own standards or by other people’s, are those who have managed to acquire, develop, and apply a full range of intellectual skills, rather than merely relying on the inert intelligence that schools so value. These individuals may or may not succeed on conventional test, but they have something in common that is much more important than high test scores. They know their strengths; they know their weaknesses. They capitalize on their strengths; they compensate for or correct their weaknesses. That’s it.” (bold in text) (p. 12)
So, this is quite an invigorating start! Intelligence is something we use in day-to-day life.
The first half of SI takes up a review and critique of traditional efforts to define and measure human intelligence. For those of us who followed the uproar over The Bell Curve (Herrnstein and Murray, 1994) or have otherwise been exposed to critiques of standard approaches to intelligence, skip quickly to Part III “Successful Intelligence Is What Counts”.
SI posits three key elements of successful intelligence:
Analytical intelligence focuses on problem solving. SI discusses this under the following headings:
Creative intelligence focuses on finding good problems. Here SI struggles to develop a coherent and satisfying definition for creative intelligence by posing an “investment theory of creativity”. Unfortunately, this discussion struggles with a metaphor standing in as a definition: “Creatively intelligent people are like investors. They buy low and sell high.” This line of argument leads to the following notion of what creativity is about:
“In the investment view of creativity, then, the creative person buys low – comes up with an idea that is likely to be rejected and derided. That person then attempts to convince other people of the value of the idea and thus increase the perceived value of the investment. If he has finally convinced others of its value, the creative person sells high – leaves the idea to others and moves on to the next unpopular idea.” (p.190-191)
From my perspective and experiences in the business world, this gives much too much importance to the Don Quixote aspects of the process. What exactly is the “investment” here? Is it really true that creative people set out to be “rejected”? (Perhaps, some reading in the literature of innovation in industry might be helpful here. Although these are looking at the problem of creativity from a more macro level, Eric von Hippel’s Sources of Innovation and Everret Roger’s Diffusion of Innovations might shed some light on creativity.)
Leaving aside my quibbles about the difficulties SI has with defining creative intelligence, this chapter closes with a set of observations about how to develop creative intelligence. The section headings provide a good slice though these (paraphrased here):
Successfully intelligent people:
The discussion of practical intelligence is altogether too brief because too much of this chapter is taken up with further efforts to debunk various standing notions of the connection between standard views of intelligence and real world success.
“Practical problems are characterized by, among other things, an apparent absence of the exact information necessary for solution and also by their relevance to everyday experience.” This leads to a discussion of the roll of “tacit” knowledge. BUT, SI’s use of the word “tacit” bears little resemblance to either my own usage or a dictionary definition (in this case my usage and the dictionary are in good synch).
“What, exactly, is tacit knowledge? It has three characteristic features. First, tacit knowledge is about knowing how – about doing. It is procedural in nature. Second, it is relevant to the attainment of goals people value, not the kind of academic drivel without practical value that teachers sometimes try to stuff in students’ heads. And, third, it is typically acquired with little help from others.” (p. 236)
Now, if we strip out SI’s confusing use of the word “tacit” (perhaps you may want to substitute “practical” or “worldly”), we now have a statement about that body of knowledge that one gains through the actions, association,and activities of day-to-day life – the world of knowledge accumulated through work, hobbies, social interactions and play. Go back and reread the paragraph quoted above. Excise “tacit” and substitute “worldly”. Now we can see what SI is trying to say. I have more than a small quibble with SI’s third feature. In my experience, most of my “worldly” knowledge was directly or indirectly gathered from the people around me. This usually occurred in an expressly “helping” mode.
Although SI is hardly a comprehensive or mature statement of exactly what successful intelligence is or how we can encourage its development, it at least moves the discussion of intelligence onto a plane where we can think of intelligence as a poly-dimensional entity. This gets us beyond the intellectually barren territory of IQ and other such nonsense. Further, SI helps to move us towards notions that can support practical thinking and policy making to support increasing the body of successful intelligence in all human beings.
Viewing this from my personal perspective as a business manager, I could not help but note the immense surface overlap between SI’s description of successful intelligence and many of the underlying principles ascribed to high-performance organizations. Here, for example, are statements (bolded in the SI text) from the discussion of Problem Solving:
“Successfully intelligent people don’t wait for problems to hit them over the head. They recognize their existence before they get out of hand and begin the process of solving them.“(p. 158)
“Successfully intelligent people define problems correctly and thereby solve those problems that really confront them, rather than extraneous ones. In this way, the same problems don’t keep coming back into their lives. They also make the effort to decide which problems are worth solving, in the first place, and which aren’t.” (p. 160-161)
“Successfully intelligent people carefully formulate strategies for problem solving. In particular, they focus on long-range planning rather than rushing in and then later having to rethink their strategies.” (p. 163)
“Successfully intelligent people represent information about a problem as accurately as possible, with a focus on how they can use that information effectively.” (p.165)
“Successfully intelligent people think carefully about allocating resources, for both the short term and the long term. They consider the risk-reward ratios and then choose allocations that they believe will maximize their return.” (p. 169)
“Successfully intelligent people do not always make the correct decisions, but they monitor and evaluate their decisions and then correct their errors as they discover them.” (p. 170-171)
Now, if you substitute the words “successful companies” or “successful organizations” for “successfully intelligent people, you will get a set of useful statements about high-performance organizations. Hmmmm…
In today’s New York Times Warren Buffett writes about why he is buying American equities. He includes the following epigram:
Here is a link to the op-ed article, “Buy American. I Am.” in the 10/17/08 New York Times
More reasons why the old maxim is still true: “Don’t Bad Mouth The Competition”.
This podcast is 4 minutes 9 seconds long.
The other day I met a business person and was chatting about the marketplace for his business – plumbing actually – and found myself listening to a small scale tirade attacking several of his competitors for what he felt to be “sleazy, slipshod practices”. This incident brought me back to thoughts about what I think is a proven business maxim, “Don’t Bad Mouth The Competition”.
The most obvious reason not to denigrate competitors is that it always distracts your potential customer or, worse, a current customer, from thinking about you and your products and services. If your customer brings up a competitor, this is an opportunity to learn more about what the customer wants and needs. Ask questions about what the customer is requesting. Are there service or product gaps between you and the competitor? If the customer mentions a competitor price, do not respond until you have explored in detail what the customer’s requirements are. Apples and oranges do not sell for the same price, and, you do not want the conversation to rush to price before you have a chance to explore the whole value of a possible piece of business with this customer.
Loss of trust is also frequently a consequence of bad mouthing competitors. After all, don’t we all think when we hear a person trashing someone, “I wonder what this guy says about me when I am not around.” This loss of trust can be permanent. There are many people who will simply stop doing business with a company represented by people who speak badly of others. In almost any event, you will be introducing doubt at a personal and business level into the equation.
There are further reasons to eliminate trash-mouthing from your business behavior. This behavior distracts you from confronting why the competitor has customers at all. They must be doing something right. What are they doing? Maybe you should be learning from them? Further this behavior distracts you from understanding and clearly demonstrating your value to your potential customers and more important reinforcing these values.
If you encourage or allow your employees to engage in bad mouthing, you are also providing them with a psychological crutch to explain why they are not performing well. This same psychology allows them to run the silent movie in their heads of the villainous competitors who are nefariously taking business away from them. They need to spend that time and energy thinking about how they can add value to customers where the only sales and profits come from.
Now we should be clear, and this is not squirming out of the message here, the maxim to avoid bad mouthing does not mean that you should not point out in a very factual manner where the differences are between you and your competitor. There are many situations where a customer will be thankful that you have presented a clear analysis of the trade-offs among a number of companies’ offerings. Be vigorous, fair, and factual. You will win points for this.
So, the next time you feel the urge, or you hear one of your own company’s personnel winding up for a session of trash mouth, stop and think it through.
Shifting your focus from weaknesses to strengths is a powerful step towards being personally more effective and building a more effective organization.
This podcast is based on an earlier blog posting: “Managing for Weakness – a mis-management myth”.
This podcast is 7 minutes 21 seconds long.
You can download a PDF file with the transcript of this podcast