Category: Business, Organization, and Management

  • It’s hysterical that Boeing just uses trucks to haul these giant sections of air

    It’s hysterical that Boeing just uses trucks to haul these giant sections of aircraft up I5 through Seattle traffic like its today’s produce headed to market. Incongruous.


    Source date (UTC): 2012-07-31 13:10:00 UTC

  • STARTUPS Discussed two startups this week. At two ends if the scale. Both really

    STARTUPS

    Discussed two startups this week. At two ends if the scale.

    Both really good ideas. Both well thought out. Small one a good numbers play. Big one a great strategic play.

    Great management. Well thought out. Good people to spend time with.

    This never happens. Ever. Most ideas are a waste of time. And I never see two good ideas in one week. Ever.

    Maybe the recession has done its job. ๐Ÿ™‚

    Congrats to both. ๐Ÿ™‚


    Source date (UTC): 2012-07-26 21:13:00 UTC

  • A COACH’S JOB IS RECRUITING, RECRUITING, RECRUITING Spent the evening with a coa

    A COACH’S JOB IS RECRUITING, RECRUITING, RECRUITING

    Spent the evening with a coach of one of the big college basketball teams. (Mostly talking smack, of course.) But mostly about work, our divorces, and life. Despite the vast differences in our disciplines, it sure felt like we were in the same business: the job is recruiting talent, and giving it direction. There isn’t that much more to it.


    Source date (UTC): 2012-07-11 01:35:00 UTC

  • WHERE DO ENTREPRENEURS COME FROM? “Following the lives of 6,116 young people in

    WHERE DO ENTREPRENEURS COME FROM?

    “Following the lives of 6,116 young people in the 1970 British Birth Cohort from birth to age 34, we examined the role of socioeconomic background, parental role models, academic ability, social skills, and self-concepts as well as entrepreneurial intention expressed during adolescence as predictors of entrepreneurship by age 34. Entrepreneurship was defined by employment status (being self-employed and owning a business).

    For both men and women, becoming an entrepreneur was associated with social skills and entrepreneurial intentions expressed at age 16. In addition, we found gender-specific pathways. For men, becoming an entrepreneur was predicted by having a self-employed father; for women, it was predicted by their parentsโ€™ socioeconomic resources. These findings point to conjoint influences of both social structure and individual agency in shaping occupational choice and implementation.”

    – Courtesy of Tyler Cowen at MarginalRevolution.


    Source date (UTC): 2012-07-11 01:30:00 UTC

  • AQUANTIVE BUST At the time, I viewed it as an act of executive desperation. It w

    http://business.time.com/2012/07/03/microsoft-writes-off-most-of-its-2007-6-3b-ad-business-bet/MICROSOFT’S AQUANTIVE BUST

    At the time, I viewed it as an act of executive desperation. It was.


    Source date (UTC): 2012-07-05 05:38:00 UTC

  • How Do The Best Graphic And Web Design Firms Handle Sales?

    SALES: It varies by the size of the company.   Small companies generally are hired because they are local and cheap for small projects. Small projects get more attention and quality from small local companies. Big companies hate small stuff and are expensive. Selling to local companies is really just a matter of knocking on doors and showing work until they give you some of it.

    Large agencies are generally hired for their breadth of services, ability to scale, and strategic understanding.  Large agencies are able to attract and pay for a lot of talent in sales and delivery.

    Most opportunities are found through relationships between people who know each other.  But customers are always seeking new agencies and ideas. So customers will sometimes seek out an agency that wins awards or does promotional work for interesting clients.

    But most new companies do not have relationships and must generally produce gratis work for non-profits to promote its abilities. Much of the best award winning creative work is done gratis.  Usually, established companies are too conservative to fund projects that are useful for the agency to use in a sales pitch.

    Rarely do companies get off the ground without one or two accounts to support the startup.

    If I understand your question above, ‘Design Services’ is what you’re selling. 
    The problem is that for marketers, design services are like buying paper towels, toilet paper, and dish soap: they’re commodities. Design isn’t scarce. The difference between all but the top talent is marginal. So to get clients, you need to sell something other than the work itself.  Generally, you’re willingness to do it cheaply, or with greater customer service. Or perhaps because you understand their business or customers.  Largely; it’s “ease, dependability and price”.

    Most agencies MARKET rather than sell themselves.  Most service companies SELL themselves rather than MARKET themselves.  The question is, whether you have the money and talent to market yourself, or whether you are still just a service company and need to sell commodity services directly until you have relationships and business understanding. 

    PROCESS: 1)if you’re small just knock on doors and learn about possible client’s businesses.  Eat whatever ‘bugs’ you have to in order to get in the door.
    2) Develop a pitch team of Creative, Editorial, Technical, Marketing and account management.  Most of the time, in my experience, there are only two strong people out of that set in any given company. 
    3) if you get big enough, then hire a salesperson.  Usually the founders of small firms perform sales.   Sales people are very risky. Almost all business I have purchased in my life have gotten in trouble when the founders try to stop selling and hire salespeople.

    RFP’s: have a very bad name largely because customers will steal ideas, and because most of the time you’re just ‘column fodder’.  Pitches are EXPENSIVE.    A big agency for example only might put in five pitches a year. But they would spend hundreds of thousands of dollars on each pitch. A midsized agency might spend over 50K for each pitch and do more of them, and a small agency less than that. It’s expensive.  A commodity agency might never pitch just sell services based upon proposals.  So, if you’re in the pitch business, it’s best to pick the RFP’s you’re capable of winning and then to absolutely kill it with good ideas, and price on the pitch. 

    My main bit of criticism, as someone who almost never loses a pitch, is that it’s not worth pitching something that you havent given your all.  So only pitch when you’re willing to give it your all, and where what you’re pitching is really valuable to the customer.  Everything else is a waste of time and money.  Count on at least one-quarter of your business leaving each year, so that if you want a greater than 20% growth rate – which is what attracts customers and talent – then you need to sell enough pitches to generate 40-50% of your revenue a year. If you figure out the average size of your accounts as they exist today, then the size of the pitches you feel you can win, then the rate of your wins, it’s just some simple math.   (Most agencies are puny, at under 5M in billings.) 

    (I’m trying to keep this simple enough for a Quora posting, so if something isn’t clear then ask.)

    SOFTWARE: Adobe suite. Macs. You need to be able to speak PC well enough to work with and deliver customers assets though.

    REFERENCES: There are notoriously few books on this business that are worth reading.  Ogilvy on Advertising is about all you really need to know.  There is one on copywriting the name and author escapes me.  Maister’s book on being a “Trusted Advisor” is as timeless as Ogilvy’s.   Other than Seth Godin’s attempt to shock the old guard into thinking about the identity of consumers today little has been written that’s really valuable. (There book about the marketing history of Mazda is good too.) Generally, high minded and fashionable books on marketing and advertising are just nonsense.  Find work. Take care of clients. Accumulate talent.  Try to survive. It’s a craft. Not a science.  It’s not that complicated.

    LAST BIT OF ADVICE: Creativity is not magic. It is the process of filling your mind with related information then playing while the subconscious does its thing.  It’s repeatable. It’s procedural. And you can get good at it as an individual or team.  The best defense against doing bad work is to simply collect as much work as possible and keep examples of both good and ‘failures’.  I can’t tell you how many ideas I’ve shot down by using an example of a known failure.

    OVERALL: It is a murderously overpopulated business in transition from a highly profitable past to a less profitable future, where you are little more than a commodity and where you live hand-to mouth in exchange for the freedom to work in a field that accepts “playing” as doing work.

    https://www.quora.com/How-do-the-best-graphic-and-web-design-firms-handle-sales

  • In The Us, Is It Realistic To Try To Achieve Labor/progressive Goals In Businesses Through More Active Shareholder Participation Rather Than Government Regulation?

    Being a shareholder is like being a voter. It’s more symbolic than meaningful. Companies of any size are affected either by a) threats to the brand perception by customers or b) threats at regulation.  These two are more effectives strategies than minority share ownership.

    IMHO there is a trending body of thought that suggests shareholders are not owners but speculative lenders. The recent Apple dividend distribution was caused by economists blogging and publicly decrying the company’s hoard.  This caused the company to issue dividends defensively.  And the powerlessness (and frankly, lack of utility) of shareholders was part of that discussion.  Lynn Stout has written a book “The Shareholder Value Myth” and I think it accurately represents the mythology around shareholder ownership.

    https://www.quora.com/In-the-US-is-it-realistic-to-try-to-achieve-labor-progressive-goals-in-businesses-through-more-active-shareholder-participation-rather-than-government-regulation

  • In The Us, Is It Realistic To Try To Achieve Labor/progressive Goals In Businesses Through More Active Shareholder Participation Rather Than Government Regulation?

    Being a shareholder is like being a voter. It’s more symbolic than meaningful. Companies of any size are affected either by a) threats to the brand perception by customers or b) threats at regulation.  These two are more effectives strategies than minority share ownership.

    IMHO there is a trending body of thought that suggests shareholders are not owners but speculative lenders. The recent Apple dividend distribution was caused by economists blogging and publicly decrying the company’s hoard.  This caused the company to issue dividends defensively.  And the powerlessness (and frankly, lack of utility) of shareholders was part of that discussion.  Lynn Stout has written a book “The Shareholder Value Myth” and I think it accurately represents the mythology around shareholder ownership.

    https://www.quora.com/In-the-US-is-it-realistic-to-try-to-achieve-labor-progressive-goals-in-businesses-through-more-active-shareholder-participation-rather-than-government-regulation

  • Can Scrum/agile Project Management Be Used Effectively In A Digital Agency?

    I agree with Dave, despite being an advocate of Scrum in most circumstances.

    A controversial argument:

    Scrum was developed for:
    1) Small teams of  talented people.
    2) Strong buy in from the client(s) who are effectively members of the team.
    3) To compensate for the evolutionary accumulation of knowledge as development progresses.

    HOWEVER
    1) It is less contractually defensible without extraordinary change control – the causal relationship between goal, budget and what is accomplished is often open to greater risk of litigation or loss.
    2) Clients are often comprised of different factions attempting to undermine each other, and conflicts not resolved in contracts are often impossible to avoid, leaving the agency exposed to failure, caused by the client discord.
    3) There are a lot of people in the industry who lack the discipline to work in this manner, and the addition of contractors often exacerbates the problem.
    4) It used to be more difficult for agencies to attract top technical talent.  This is declining but is still, to some degree, true.

    INFORMED OPINION
    Is that it is better suited to teams who work together all the time, and in particular for product development, and less comforting to use in high risk environments with a significant amount of customer management.

    Given the tendency of the major agencies to have less trusting delivery relationships with their clients I would have to approach any question extremely cautiously less one or two major failures a year remove all perceived benefit from the broader financial and relationship questions.

    https://www.quora.com/Can-scrum-agile-project-management-be-used-effectively-in-a-digital-agency

  • Have Any Corporations Embraced Equitable Or Just Compensation Models?

    Um.. This is one of those problems that’s really nonsense. 

    All employees should be compensated at market rates. Otherwise if you are lower, they won’t stay, if they are over, your competition will eat you.

    Compensation is not equitable WITHIN A COMPANY. It is equitable across ALL COMPANIES.

    Do not fall into the trap of confusing the ‘fiarness’ of a family, with the alliance of people that work together in a company.

    https://www.quora.com/Have-any-corporations-embraced-equitable-or-just-compensation-models