In the last two years, I’ve seen more and more people in my social circle starting blogs. Most of which were focussed on a micro-topic, including travelling to South America, to Japan, having a baby, self-help topics, and team-dynamics. All of them with merit, but about 80% of them ran out after a while. What is the problem? How about: finding the inspiration, not getting (m)any comments, balancing it with your actual job, etc. etc. Also, the baby eventually grows up, you eventually return from your trip, and there’s only so much to say about self-help (in my opinion).

But while our perception of blogging has changed over the years, particularly if you listen to early adopters, you could say that in a way blogging has become a mainstream phenomenon. Mainstream not meaning that everyone does it, but that everyone can do it. And the reason for that is I think the popularity of Facebook and Twitter, which is a gateway onto other services (incidentally, not many Facebookers I know that started a Facebook-only blog).

Sure, many companies have entered the game, several blogs have become companies, and many personal blogs have been closed or abandoned.  Consolidation and commercialisation often means that there is no more space for the little guy. But, who cares right? You could still set up 10 blogs in the next hour and nobody would stop you. It’s just, nobody would probably read you, unless you write a really good blog + advertise it a bit. But while traffic is clearly a currency of blogging, as are comments, it does not seem to be driving the adoption of blogs in the short-term.

Looking at the current blogging landscape, I can only conclude that blogging is far from dead. But is is perhaps best to be aware that every blog is not the same. Just take a look at the following categories that I have identified, which I am sure is not a complete selection. There’s:

• The micro-topic blogs, which get started every so now and then, run out after a while, but don’t discourage others from starting their own.
• The small business blogs, for professionals and SMEs seeking to differentiate themselves. Whether these blogs can continue to exist, I think, all depends on whether they can reconcile their short-term profit goals (and needs) with the long term benefits  of blogging, which are far from clear (please don’t take 37 Signals as an example that all SMEs should blog).
• The small media-blog, which is what the Techmeme 100 is all about and which will never go away, as it’s a low-cost competitive approach towards battling/replacing big media.
• The big media-blog, which is really a hybrid of journalism and opinion, neither of which will ever go away.
• The corporate blog, which, similar to the small business blogs, still needs to find a raison d’être for itself. Exceptions are companies that already work on the web, like Google, IBM, Microsoft, O’Reilly.
• The small and large (web-)celebrity blog, which for some is just ego-stroking and for others is an artistic outlet, both of which are justifiable, not only to the people who write them, but I think is also a big driver for the new blood in the blogosphere.

Clearly, no matter what people may say about the rise of micro-blogging and social networks, the blogosphere has become a complex beast, one that continues to attract attention, whether it’s in the form of traffic, comments (those 2 aren’t correlated on Tech IT Easy), or perhaps simple hype.

Blogging is dead, yay, now let’s get blogging!

Vincent

P.S. This marks the 5th anniversary of my blogging, which started in the Summery of 2004. How the time flies by.
P.P.S. Picture is of the St. Louis Gateway Arch, and is meant to be symbolic.

If I ever succumb to the temptation to blog like I did last night, feel free to shoot me. Now, back to our regular programming…

Last week, I wrote about having heroes in your craft and how I found it noteworthy that some examples are more effective than others in everyone’s path to self-improvement. I attributed it to the vague concept of compatible brain-patterns, but really I think it’s a much more simple idea. The reason that my writing heroes have an influence on my craft is because I practice it. In other words, there is a right mix of idea and execution (I would call it semi-right as there’s much room for improvement).

There are plenty of blog posts about this. Most well-known to me is Derek Sivers’ blog post about the “execution multiplier” that makes ideas more or less valuable:

AWFUL IDEA = -1
WEAK IDEA = 1
SO-SO IDEA = 5
GOOD IDEA = 10
GREAT IDEA = 15
BRILLIANT IDEA = 20

NO EXECUTION = $1
WEAK EXECUTION = $1000
SO-SO- EXECUTION = $10,000
GOOD EXECUTION = $100,000
GREAT EXECUTION = $1,000,000
BRILLIANT EXECUTION = $10,000,000

To make a business, you need to multiply the two.

More recently, Sarah Lacy wrote a post on Techcrunch, entitled “Is Execution More Important than Vision?,” where she differentiates between entrepreneurs that are visionary vs. those that are good at execution. In other words, she categorises people as either fitting in the one or the other.

What is clear from all of these is that ideas unapplied are essentially worthless. Which to me means three things:

1. That if you have ideas in an area that is difficult for you to execute on, you’re probably better off focussing on areas where you can execute them.
2. Or, that it is equally important to find the right resources (skills & knowledge, network & team, money & customers) for your idea as it is to have the idea.
3. That you ultimately need to move towards a system of rapid iteration or rapid prototyping, because, as we all know, ideas are ideas, and the reality will more often than not change your original product idea. The quicker you can test them out and improve them, the better your chances of making a commercial success.

It’s a bit of a leap from my post about writing heroes to executing entrepreneurial ideas, I know, but I think it makes sense.

Vincent

I have hardly any time today, catching up on the week, which is terrible for the creative spirit. So, as a 15 min. therapy, where do good ideas come from? Here are 4 areas that I can think of:

Exploration / Rest: Spending 3 days in Paris and 2 days celebrating the national day of Luxembourg was great for thinking about life, discussing various topics and plans, and brainstorming ideas. It is in a way the anti-thesis of working life, which is focussed on making you into a machine, constantly moving, constantly following a routine, and not breaking out into new creative patterns. Ease of Implementation: Ideas are often abstract and need a lot of work to make them useful.

Iteration: This the primary way that companies innovate, by constantly developing routines, slightly adapting them over a long period of time, until version 2, 2.1, 2.2, 2.infinity, etc. It is why (consumer) products are the way they are. Ease of Implementation: when you actually have new ideas they face the challenge of breaking existing patterns that are cemented into operating companies and more difficult to change. Still, new ideas are often based on practical data and should thus be more easy to implement.

Deconstruction: This is what I call the Sherlock Holmes way or the “where have you last seen it?” way. You are faced with a problem, e.g. finding something you lost or figuring out how an electronic device works. The best way to do it is to break it down into small steps or pieces (deconstructing) and then reconstructing the reality again. In technology, you might also call this reverse engineering. Ease of Implementation: much like iteration, it is based on realities that already exist. Ideas are often better than what came before, because you’re an outsider, taking something apart and throwing away the junk. Ever lost a piece of text you wrote due to your computer/software crashing? I guarantee that your version 2 will be shorter, more to the point, and better.

Conflict: I was discussing this with Jeremy this weekend, regarding the building of teams that can challenge each other. It’s a destructive and constructive process all at once and I think the benefits usually outweigh the risks. Ease of Implementation: It’s difficult to find that kind of talent and the right mix, so I would say that implementation is not easy. It should however be at the top of the agenda of any organisation who wants to be an innovator in its field.

Other ways to come up with fresh ideas? The floor is yours!

Vincent

(I could have picked a more profound movie for this…). In the story of Sindbad, the animated Disney version from 2003, Sindbad and Marina go on an adventure together and fall in love. In the beginning of the film, you find out that Marina always loved the sea and… a little spoiler… in the end she chooses a life on the sea as her future as well. And, in the process, she chooses Sindbad over her originally betrothed, Proteus.

Watching this movie in bed this morning, recuperating from a very exhausting but great few days, I thought about the meaning of it all. And because this is a business and technology blog and I can’t exactly write posts about the meaning of life, I’ll write about what I think it means in a business context instead.

In sales, which by its nature of convincing people to spend their hard-earned cash on a product or service, has a bad reputation, you can either sell a widget (Sindbad) or you can sell a life (the sea). But really you should sell the widget, within the context of the life. So, in other words, the most convincing sales method is to sell an Experience.

Right now, I am sitting at a terrace in the Place Guillaume II in Luxembourg, listening to live music, and drinking my third tea. Had the context been, pardon my French, merde, I would’ve left after the first tea. Had the tea been bad, I would’ve left also. But because the context and the product/service are good, I have become a repeat-customer, at least for today.

I don’t think this is restricted to B2C only. In business-to-business, which is the area I operate in, we also sell services which have to either fit within the context of the customer, or create an entirely, new and better context for him. So, for instance, our financial trust manages certain financial affairs for customers who want to settle down their company or savings in Luxembourg and enjoy certain tax- and other advantages. The context/product combination is even more clearer in this case, as we are in fact offering a country as our product. Of course, we still have to do a good job, but we convince our “Marinas” to come here and work with us, through a big-picture sale.

I hate it when salespeople try to convince me about their product without having considered for one second what the financial or other benefit is for me. And there is an incredible amount of these negative experiences out there, which I think is the primary reason for why sales gets a bad rap. If you instead think of it as selling a cruise on the sea, or, better, an sea-adventure with Sindbad, I think you’ll generate much more positive returns.

Of course, this doesn’t always work for a cheap product like tea, where the margins are so low (actually, I think the margins are at about 70%, but 70% of 2 euros is not a lot) that you would rather sell more, more quickly, than spend too much effort on the context and in the process sell more slowly. The difference is perhaps that with a product like tea, the location matters a lot, which means that you have to spend more on rent and include that in the cost of your product.

End of thought for today. If you’re in sales, sell the experience, not just an expense, and I think your quality of working life will increase. I prefer a happy paying customer than just a paying customer, don’t you?

Vincent

(Picture of The SS Rotterdam returning home from her last voyage)

First of all, Paris was great! For three days, Jeremy (Fain, founder of Tech IT Easy & Verteego.com) drove me crazy in a good way, by mapping out every single minute of my life. Similarly to how we met up in Barcelona, it was a great way to get to know the city and at the same time realise that truly knowing Paris will require some further trips back.

Since Tech IT Easy was founded by a Parisian, I felt it was good to go to the source and have a “vision-refresher” as it were. At its peak, this group-blog featured 15 writers, the majority of which was from France or situated there at some point. Many are now spread across this planet and it’s sites like Tech IT Easy that represent a small node where we can occasionally brush against each other (in an intellectual way) and exchange the wisdom we have learned.

Meeting several Tech IT Easy authors, Steve Danino and Emmanuel Perez-Duarte, it reconfirmed to me the intellectual spirit in which this weblog was founded, as well as the search for something, anything, but probably tech- (and/or business!-) related. Many of our authors enjoy a solid educational background, which is both good and bad. Good, in the sense of the value it brings. Bad, because there are many opportunity costs in life and even more so for well-educated men and women. It is clear then that we all write when we can, but more often than not, we cannot.

It is all the more important then to get more (and more and more) fresh blood onto Tech IT Easy to replace those that have moved on, and to connect those who are “old” to those who are “new.” The vision, my vision for Tech IT Easy has always been that of building a community of talented people who directly and indirectly assist each other to make our world a (technological) marvel.

Does that work in practice? In my opinion, only if people work hard at making it happen and the effects are far from direct or instantaneous. Rather, if I need to speak to an interesting person in France (or anywhere really) or bounce a complicated idea of someone, I’ll often look up one of our Tech IT Easy members and vice versa.

A few blog posts that I thought were great and directly showed off the value of some of our members, were Remy Miralles’s posts about being a software developer, and Cecil Dijoux’s (who is incidentally also a musician by night) posts about High Availability Architecture. I have met neither of them yet, but I know the day will come. These posts are more the exception to the rule, which is that, on this weblog, we often do not market ourselves, but instead think out loud and whatever opportunities happen because or outside of it, are the individual’s own. The risk is that sometimes you of course do the opposite of marketing, but hey…

It is the nature of the beast that is blogging that its value is hard to determine. We host this weblog for a negligible amount and the 45 min. a day that I spend blogging on it is also negligible in terms of expense. We could value this blog by asking for money, but apart from some unobtrusive monetisation exercises on the horizon, we will not make a serious effort at that… because it would create a different kind of pressure and hence different kind of focus. But, who knows…

The value that Tech IT Easy has to me, remains to be that node, out of which occasionally there is some new strings that are formed, either intellectually or through building up a new relationship or venture. Everything else is… soft tissue.

In the words of the once great Arnold, I’ll be back!
Vincent

I don’t like to re-blog things, but I’ve long suspected the following to be true and as such it’s worth a mention:

Shouldn’t you announce your goals, so friends can support you?

Isn’t it good networking to tell people about your upcoming projects?

Doesn’t the “law of attraction” mean you should state your intention, and visualize the goal as already yours?

Nope.

Tests done since 1933 show that people who talk about their intentions are less likely to make them happen.

Announcing your plans to others satisfies your self-identity just enough that you’re less motivated to do the hard work needed.

Read more on Derek Sivers’ great blog for musicians and entrepreneurs alike.

Vincent

P.S. I wrote about Derek Sivers before on “Guess Who No. 8” (another tradition we have to reboot soon!)

We’ll be migrating Tech IT Easy from wordpress.com to a self-hosted solution these coming days, so I won’t be posting much, I don’t think. In the mean time, here are a few things flying through my head.

Men can’t get away with this !!

Jason Kottke pointed me towards an anti-fashion-industry trend lead by some women: the wearing-one-dress-slightly-altered-day-in-day-out-trend. Somewhat jealous, because it seems so efficient (and thus manly), but I don’t think men can get away with doing something like that, do you? Then again, men also don’t look quite as attractive…

Factors influencing the ‘virtual office’

I’ve heard several stories of entrepreneurs setting up their companies that they can operate it independently from a location, and if you’ve read some of my posts on “designing companies” and mobility, you know that I feel very strongly about doing something similar. In VAT-law, there’s the rule that you can’t locate your VAT-payments to a VAT-friendly country if you’re doing significant business in the VAT-unfriendly country. I’m guessing it’s quite similar with virtual offices. If your business activities tie you to a particular location, than that is a ‘tax’ that you have to pay.

Since there are plenty of smart tax-lawyers around who know their way around the loop-holes, perhaps it’s time for some ‘expert-consultants’ that help entrepreneurs become location-free?? The 4-hour workweek guy comes to mind.

On building (corporate) Knowledge Centres

I grew up in a library, one which my father built, so I may have a different perspective from people growing up in the more digital, paper-free world. But, to me, libraries are magical and comforting. One of the first things I did, moving to Luxembourg, was to move many of my books here (with more on the way) and asking my boss whether we can set up a library.

More broadly, a library to me stands for building and storing knowledge, whether for individuals or groups, and is a source of creativity, innovation, and also trust. Large consultancies are most famous for doing such things and if you saw the virtual universities some of them have train their staff, you’d be amazed.

No great point to this story, except that I hope that as an entrepreneur/manager/CEO you’ll also consider how to improve the lives of your employees sometimes, as well as consider that your company, which is essentially a living organism, will only benefit from having more knowledge inside of it.

On that philosophical note, I.. am.. out.

Vincent

Tired of the gazillionth post about 10 marketing tips for social marketeers? Tired of marketing all together? I think there’s a reason for that, it’s because marketing should be invisible!

Let me give you a brief example and then I will stfu. For my high school, I’m organising a reunion together with a team of 2-3 people. We started a Facebook group, ca. 140 people from all over the world have signed up. We hold mass-mailing campaigns only to find out what people’s preferences are. We use that data, derived from poll-answers mostly, and design, hopefully, the perfect reunion event.

When the day comes, this September, I’m sure someone is going to say: “thank you for all the work you did.” But that’s b#llsh#t! Because it wasn’t us doing the work, it was everyone filling in what they wanted and everyone designing their own event. All we did was mediate, using the free tools that are available to anyone at zero effort.

That’s the way all marketing should be. Because if you think about it, marketing is about giving customers they want. And how do you do that? You listen to customers, stfu, and deliver.

Vincent

Background: This is an advice that I am giving to someone, who is a traditional artist. She paints and tries to sell her paintings. By writing this down for you, the public, I don’t think I am revealing critical information, in that it is a common sense approach to building a sustainable business. It does not address two critical factors: the intellectual property (which is the art) and the marketing (which comes in part from quality and in other part from choosing the right sales channels).

Here is the situation: I like (her) paintings, but they are very work-intensive. Each painting can take anything from 2 weeks or more to produce and the end-price reflects this as well. In today’s economy, in any economy, this means that there is a segment of the population that will not be able to afford it it. Museums, who display art worth millions, have overcome this problem quite elegantly, by selling posters and postcards of these art-pieces. Countless other art-industries are based on turning a singular piece of art into mass-produced widgets. Similarly, I think it is much more efficient, for more reasons than the work alone, to do something similar for the independent painter. Again, I don’t think this is a trade-secret or anything; the quality of the art and the sales channels are most critical aspects.

In any business, there are two types of cost. These are fixed and variable. Fixed costs are often significant costs and difficult to remove. A workplace is a fixed cost, so is some of the material used to produce a painting. Variable costs are smaller, often more flexible costs, incurred regularly. Paint would be such a cost and you can affect the cost of producing a painting by using different paint. It’s not quite as easy to change the workshop you work in from painting to painting.

Following is the action-plan:

1. Find out what the total fixed and variable costs are for producing a painting and x amount of reproductions (e.g. 100 posters). In other words, list all the costs in a nice Excel-sheet or piece of paper and add them up.
2. Divide the total costs by the number of posters you want to sell. Those are the costs per product.
3. Decide how much you want to charge per poster. If you or the market decides that this price is below your cost, then there is something wrong with your formula and you are making a loss. If, on the other hand, your price is above your costs, you are doing well.
4. Now… find out how you plan to sell the amount of posters you decided on…

Some … pause in that last point because how can a business man or woman really know that these are the sales they will make? My advice is therefore to keep costs as minimal as possible at the start, focussing a lot on developing the actual sales process.

That’s it really! And it reflects how hard it really is to go from having an idea (and preferably also the skill) to a profitable business. From a right-brained creative approach, you have to do some left-brained accounting, and from a product-focussed, perhaps introversive approach, you now have to become outgoing, market-focussed, and sell. Not easy!

As with all big projects, from writing a thesis to climbing a mountain, it’s my opinion and what I have learned so far, that it is always better to break it down into simple steps, see the relationships between different processes, and understand how the whole project is put together.

I always welcome discussion, so if there is an error in my logic somewhere, please, please contribute through a comment!
Vincent

The “Captain’s Chair” is what I call the chair of the entrepreneur which always has to be filled and which sits prominently in the middle of the office and all the business being conducted within. It comes out of the simple evolution from running a 1-man show, and then hiring on more people to do the work. It also has a lot to do with how sensitive the service is that is being released, and when customers expect services to be at the same level of professionalism that the initial founder has always displayed, it is understandably hard to let go.

It is also a trap that is being written about in plenty of business “self-help” books and is, in my opinion, best solved through designing processes to be as failure-free and as simple as possible. In other words, like the preparation of a McDonalds hamburger, which is a scientifically designed factory process.

One public example of the captain’s chair phenomenon is Micheal Arrington’s Techcrunch, which has, until recently, always been run out of his own apartment, and even today he is (I believe) the no. 1 editor and certainly the no. 1 PR guy. In no other media publication of that size (in terms of readership numbers, not company size) does the founder take such a prominent and involved position and, physically and mentally, I’m sure, it is taking its toll on Arrington. Similarly, I know several small companies, where this is a problem, with similar consequences on the founder.

This is not to say that doing the opposite is necessarily a good thing. As perhaps the case of Starbucks showed, which recently had to ask its original founder, Howard Schultz, to return to the captain’s chair, sometimes an organisation can forget the original values it was based on and do some silly things. In Schultz’s case, I have actually always blamed its problems on his book, which was essentially a franchise manual for anyone who wanted to set up a coffee-shop, and which might have also inspired McDonalds to basically become an affordable Starbucks alternative for the masses. A story for another day, but I think the current Starbucks model is doomed and Schultz will have to redesign the company’s business model from scratch.

There is certainly a careful balance that needs to be maintained when designing a company to both expand a business’s reach, without losing the heart of the business. Together with the simple process of “preparing a burger,” you need to instil the values that also lead to the “smile” that accompanies the sale of the burger and leads to a satisfied customer (and his return-visit).

Designing companies must thus, in my opinion, be a rich process, involving the founder(s)’s, the employees’, and customers’ input, finally leading from the single business to the chain of businesses serving all customers equally or superiorly well.

Vincent

If you think about how the iPhone was launched so many months ago, or rather at what stage the iPods were at, you know that apps were always on the horizon. The iPod G5 introduced a wider range of games that you could buy through the iTunes store, which already introduced us to the idea of buying apps, well games really, through that venue.

When the iPhone arrived, there were NO apps; App-support was basically web-coded widgets with limited functionality. The reason for this was, I believe, that there was no competition to speak of + perhaps the complexity of setting up such a venture. Apps for other phones existed, ok, but it was either in a decentralised fashion (Java for instance), or very centralised and very limited in its offering (e.g. Blackberry & Palm), at least compared to the current iTunes store.

It took pressure from the market [jail-breaking & media] and perhaps already the idea in the back of Apple’s heads to release the app-store a little over a year after the initial device was launched. When it did launch, there was lot’s of hype, lot’s of love, and good news for Apple iPhone numbers both on the device-sales side and that of app-sales.

How the other device makers reacted was two-fold and really quite half-heartedly. Most hardware makers focussed on what they did best: hardware. Touch-screen after touch-screen device entered the market. The most interesting software-based strategy came from Google, which, I guess, realised the potential of mobiles as computing platforms and, more importantly, as search/internet/”revenue for Google” enabled devices in everyone’s pocket.

The current app-store offerings are still lacking with many big parties attempting to launch one for their platforms. The key-factors in terms of adoption seem to be having a critical mass of both users and developers, both of which represent a chicken & egg problem for many, something that the initial iPhone circumvented quite elegantly.

The most promising devices today are Google-/Android-powered phones and the, still somewhat vapoury Palm Pre. The latter seems to be the most competitive, hardware-wise, with much ex-Apple talent having contributed to the Pre’s development. On the App-store front, it’s still very early days, but reports are disappointing.

So, the question is, what can phone-makers and software-makers do to compete with the new “Microsoft” (=Apple) of the mobile space? The choice, to me, appears two-fold:

1. Emulate Apple in whatever way possible: create a great device and create an app-store with a sufficient supply of apps.
2. Or, create a great device and find a way to elegantly get apps onto it, without all this centralising nonsense.

By the wording, it’s obvious that I prefer the second option. As good as the iTunes store is, it isn’t amazing for developers and it isn’t as profitable for Apple as one would think either. The biggest problem for competitors is similar to the music-situation, that Apple has critical mass, which attracts the greatest amounts of customers and is a nearly insurmountable challenge for new entrants.

Where Apple clearly leads is in its developer-support, which isn’t quite as apparent from other software/hardware makers, except perhaps Microsoft (but mainly on the PC-side) and perhaps Google. Palm, as yet, does not offer a comparable service to developers, or to put it in another way, Palm developer conferences are not yet sold out in the way Apple’s WWDC is each year.

Final thoughts:

• I think that developer support is key in any smart phone strategy these days, as mobile devices continue to become computers in your pocket.
• I don’t think that centralised app stores are necessarily the way to go, except (and I suspect this) if the mobile carriers are demanding it.
• The simplest thing would be to create a web-based categorised list of a apps that developers can add to;
• implement mechanisms that vote and demote apps according to their usefulness and other attributes;
• and create / implement mechanisms that prevent abuse (e.g. P2P apps or VOIP apps, though I think the latter can no longer be considered this)
• And continue to innovate on the hardware, because I think there is plenty of innovation left. What makes the iPhone so desirable is the app-support, but the hardware is really nothing to write home about.

Note: I purposefully left the links towards the end, because it allows for a more time-efficient, easier to write (and, maybe, read) article. Links with additional info are included in below list:

• Mossberg on Palm Pre
• Apple App store numbers
• The incredible app store hype (one of many developer complaints)
• Palm developer network

Inspired by the Grasshopper podcast on Venture Voice.

Har har,

Vincent

This is not a show-off post, more a question about making the transition from student-hood & freelancer to professional. Working at a financial trust, whose very name suggests that we should be trustworthy people, I like to think that being nice and creating things that people love, is also good for business.

At the same time, a business is about turn-over and offering good value for money, and I sometimes feel that blogging and other stuff can distract from these commercial activities.

How do you feel about it in your job?

Vincent

I think I must be a geek because I like creating order (that doesn’t automatically mean that I’m a very orderly person, rather the opposite).

One of my first priorities in my new position was to orientate myself in the “order” of things, or rather to have a good view on what the process from customer generation to customer acquisition is (my interpretation of the lifeblood of every company).

So my questions, very formal, covered following three elements:

• what is the profile of a customer most valuable to our company?
• what are the USPs of our company for these customers?
• what is the process of converting potential customers into actual customers?

The answer was that there is no simple answer to the question, except that over time I would learn to understand what was possible or not.

It kind of follows the paradigm that the famous Harvard Business Review article called “The Knowledge-Creating Company” introduces, where experts possess a lot of tacit knowledge, which they use to do their job (Incidentally, the HBR-article is authored by Ikujiro Nonaka and Hirotaka Takeuchi, who are the original protagonists of the Scrum approach).

In other words, over time, by accumulating experience, I would be able to develop a type of instinct regarding stuff like what a good customer is, what optimal solution is for him, and how the internal process works of customer conversion.

But the article takes it further (and is also my inspiration) in that from tacit or implicit you move to explicit knowledge, meaning that processes are documented and standardised. A kind of spiral forms, indicated in the picture below. This also reminds of Gerber’s franchise methodology in the E-Myth Revisited.

The question is what internal and environmental conditions have to exist for this spiral to function properly, and whether it can be applied universally to all company processes. I do not think so and would ague that in environments that are constantly changing, like global finance or when starting a company, making things too explicit undermines the speed-advantage that the tacit approach brings.

A little academic perhaps (you know me… ), but what do you think? What company processes typically need to be made explicit, and which are not served by this?

Vincent

First, what I love about business plans. I contains four elements very close to my heart: Writing, talking to people, innovation, and entrepreneurship. That is not to say that writing business plans is a fun activity that should be taken lightly. The crux of writing a business plan is that it needs to be executed upon. And that is where the complication arises.

One of my last freelance projects was amazing fun and in two ways very rewarding. Financially, because the investment that followed it, far exceeded the more than generous fee I was paid. Creatively, because my involvement lead to a lot of focus product- and strategy-wise, and we developed what I thought was a clear timeline as to the execution of the plan in different phases of product and market development.

But, as mentioned, writing a plan does not mean that it reflects the reality. I was reminded of this again, listening to a venture hacks podcast on “pitching hacks” (you can watch and listen to the presentation here). Business plans are worth squat, because a. there’s a lot of them, and b. the proportion that is executed upon is fairly small.

In theory, business-plans serve as a way to make the strategy of a young company explicit. Kind of like Gerber’s “Franchise manual” for startups in the E-Myth Revisited, it allows you to solidify what you do while you’re doing it. But, I don’t think it automatically leads to a (better or actual) business…

…

Those three dots is where I stopped writing some three weeks ago, and I have in the mean time developed my thoughts further on this. I think that the gist of good business planning is taking ownership of the project. And the single most important key-component of the business plan is the timeline section. And the single most important action as an entrepreneur is to already have at least 10-30% completed of that timeline.

In other words:

• if you’re an entrepreneur you should write your own business plan: you cannot outsource this!




• The most well-developed section of your plan should be your timeline: as conservative and realistic as possible!




• The best way to illustrate the value of your plan (and timeline) is to already be following it: actions scream much louder than written words!

If those three components are in place, I think that the world of business planning and entrepreneurship would be a much better place.

End braindump…

Vincent

Addentum: The problem of multiple agendas! I should also add that another complication is that plans are written with a singular vision in mind, perhaps alternative scenarios are included, but it still very often reflects a singular approach to “doing things.” But… many companies are composed of multiple people, who may or may not have multiple agendas. I still think it can belong to taking ownership of the idea, in the sense that the plan is worked on together and perfected until everyone agrees with it. But more often than not, the business function is delegated to certain individuals, meaning that this isn’t the case.