Tag Archives: success

Achieving Failure

Our society values success.

Our work environments value triumphing over the competition. We look to our investments to beat the market. We support our favorite teams, but adore them when they trounce their rivals. Our schools and colleges (mostly) help educate our children, but do so in a way that rewards success — good grades, good test scores and good behavior (as in, same as everyone else). We continually reward our kids for success on a task, at school, with a team.

Yet, all of us know, in our hearts and the back of our minds, that the most important lessons and trials stem from failure — not success. From failure we learn to persevere, we learn to change and adapt, we learn to overcome. From failure we learn to avoid, or tackle obstacles head on; we learn to reassess and reevaluate. We evolve from our failures.

So this begs the question: why are so many of our processes and systems geared solely to rewarding and reinforcing success?

From NPR:

Is failure a positive opportunity to learn and grow, or is it a negative experience that hinders success? How parents answer that question has a big influence on how much children think they can improve their intelligence through hard work, a study says.

“Parents are a really critical force in child development when you think about how motivation and mindsets develop,” says Kyla Haimovitz, a professor of psychology at Stanford University. She coauthored the study, published in Psychological Science with colleague Carol Dweck, who pioneered research on mindsets. “Parents have this powerful effect really early on and throughout childhood to send messages about what is failure, how to respond to it.”

Although there’s been a lot of research on how these forces play out, relatively little looks at what parents can do to motivate their kids in school, Haimovitz says. This study begins filling that gap.

“There is a fair amount of evidence showing that when children view their abilities as more malleable and something they can change over time, then they deal with obstacles in a more constructive way,” says Gail Heyman, a professor of psychology at the University of California at San Diego who was not involved in this study.

But communicating that message to children is not simple.

“Parents need to represent this to their kids in the ways they react about their kids’ failures and setbacks,” Haimovitz says. “We need to really think about what’s visible to the other person, what message I’m sending in terms of my words and my deeds.”

In other words, if a child comes home with a D on a math test, how a parent responds will influence how the child perceives their own ability to learn math. Even a well-intentioned, comforting response of “It’s OK, you’re still a great writer” may send the message that it’s time to give up on math rather than learn from the problems they got wrong, Haimovitz explains.

Read the entire story here.

PhotoMash: CEO Pay For Failure Versus CEO Pay For Success

Photomash-Mayer-vs-SorrellToday’s PhotoMash is a stark reminder that many corporate CEOs live by different rules, which they tend to conjure up themselves.

The PhotoMash comes courtesy of the Guardian on April 19, 2016.

On the one hand we see Marissa Meyer, CEO of Yahoo since 2012. She has presided over the demise of Yahoo — loss of search business to Google, loss of ad share to Facebook, failed investments in new business ventures in the billions of dollars. Yet, since taking over Yahoo Meyer has taken home around $78 million. Further, she’s on the hook to collect another $59 million should Yahoo’s takeover spark her dismissal. Admittedly, Yahoo’s stock price has rallied in recent years, but most analysts attribute this solely to Yahoo’s stake in China’s Alibaba.

One the other hand we have Sir Martin Sorrell, CEO of WPP. Over the last 30 years he’s built WPP from a small UK-based wire and plastics manufacturer, which he used as a shell company, into the world’s leading marketing and advertising services company. By current estimates WPP is valued at around $30 billion. Of late he’s been defending his latest compensation package estimated at $100 million.

Both Meyer and Sorrell tell us they’re worth every penny of remuneration to their companies and shareholders. But while it could be argued that both are earning rather too much compared with the 99.999 percent, only one is deserving. And, that shows the crux of the issue — regardless of success or failure, most CEOs will always win.

Image: Screen shot from the Guardian, April 19, 2016.

Life and Death: Sharing Startups

The great cycle of re-invention spawned by the Internet and mobile technologies continues apace. This time it’s the entrepreneurial businesses laying the foundation for the sharing economy — whether that be beds, room, clothes, tuition, bicycles or cars. A few succeed to become great new businesses; most fail.

From the WSJ:

A few high-profile “sharing-economy” startups are gaining quick traction with users, including those that let consumers rent apartments and homes like Airbnb Inc., or get car rides, such as Uber Technologies Inc.

Both Airbnb and Uber are valued in the billions of dollars, a sign that investors believe the segment is hot—and a big reason why more entrepreneurs are embracing the business model.

At MassChallenge, a Boston-based program to help early-stage entrepreneurs, about 9% of participants in 2013 were starting companies to connect consumers or businesses with products and services that would otherwise go unused. That compares with about 5% in 2010, for instance.

“We’re bullish on the sharing economy, and we’ll definitely make more investments in it,” said Sam Altman, president of Y Combinator, a startup accelerator in Mountain View, Calif., and one of Airbnb’s first investors.

Yet at least a few dozen sharing-economy startups have failed since 2012, including BlackJet, a Florida-based service that touted itself as the “Uber for jet travel,” and Tutorspree, a New York service dubbed the “Airbnb for tutors.” Most ran out of money, following struggles that ranged from difficulties building a critical mass of supply and demand, to higher-than-expected operating costs.

“We ended up being unable to consistently produce a level of demand on par with what we needed to scale rapidly,” said Aaron Harris, co-founder of Tutorspree, which launched in January 2011 and shuttered in August 2013.

“If you have to reacquire the customer every six months, they’ll forget you,” said Howard Morgan, co-founder of First Round Capital, which was an investor in BlackJet. “A private jet ride isn’t something you do every day. If you’re very wealthy, you have your own plane.” By comparison, he added that he recently used Uber’s ride-sharing service three times in one day.

Consider carpooling startup Ridejoy, for example. During its first year in 2011, its user base was growing by about 30% a month, with more than 25,000 riders and drivers signed up, and an estimated 10,000 rides completed, said Kalvin Wang, one of its three founders. But by the spring of 2013, Ridejoy, which had raised $1.3 million from early-stage investors like Freestyle Capital, was facing ferocious competition from free alternatives, such as carpooling forums on college websites.

Also, some riders could—and did—begin to sidestep the middleman. Many skipped paying its 10% transaction fee by handing their drivers cash instead of paying by credit card on Ridejoy’s website or mobile app. Others just didn’t get it, and even 25,000 users wasn’t sufficient to sustain the business. “You never really have enough inventory,” said Mr. Wang.

After it folded in the summer of 2013, Ridejoy returned about half of its funding to investors, according to Mr. Wang. Alexis Ohanian, an entrepreneur in Brooklyn, N.Y., who was an investor in Ridejoy, said it “could just be the timing or execution that was off.” He cited the success so far of Lyft Inc., the two-year-old San Francisco company that is valued at more than $700 million and offers a short-distance ride-sharing service. “It turned out the short rides are what the market really wanted,” Mr. Ohanian said.

One drawback is that because much of the revenue a sharing business generates goes directly back to the suppliers—of bedrooms, parking spots, vehicles or other “shared” assets—the underlying business may be continuously strapped for cash.

Read the entire article here.

Goals and Passion Are For Losers

Forget career advice from your boss or the business suit sitting in airline seat 7A. Forget start-up mentors and the advisory board; forget angel investors and analysts with their binders of business suggestions. Forget using your family or local business leaders as a sounding board for your existing (or next) enterprise. Forget the biography of the corporate titan or the entrepreneurial whiz with the obligatory garage.

The best career advise comes from one source, Scott Adams: it’s all about failure.

From WSJ:

If you’re already as successful as you want to be, both personally and professionally, congratulations! Here’s the not-so-good news: All you are likely to get from this article is a semientertaining tale about a guy who failed his way to success. But you might also notice some familiar patterns in my story that will give you confirmation (or confirmation bias) that your own success wasn’t entirely luck.

If you’re just starting your journey toward success—however you define it—or you’re wondering what you’ve been doing wrong until now, you might find some novel ideas here. Maybe the combination of what you know plus what I think I know will be enough to keep you out of the wood chipper.

Let me start with some tips on what not to do. Beware of advice about successful people and their methods. For starters, no two situations are alike. Your dreams of creating a dry-cleaning empire won’t be helped by knowing that Thomas Edison liked to take naps. Secondly, biographers never have access to the internal thoughts of successful people. If a biographer says Henry Ford invented the assembly line to impress women, that’s probably a guess.

But the most dangerous case of all is when successful people directly give advice. For example, you often hear them say that you should “follow your passion.” That sounds perfectly reasonable the first time you hear it. Passion will presumably give you high energy, high resistance to rejection and high determination. Passionate people are more persuasive, too. Those are all good things, right?

Here’s the counterargument: When I was a commercial loan officer for a large bank, my boss taught us that you should never make a loan to someone who is following his passion. For example, you don’t want to give money to a sports enthusiast who is starting a sports store to pursue his passion for all things sporty. That guy is a bad bet, passion and all. He’s in business for the wrong reason.

My boss, who had been a commercial lender for over 30 years, said that the best loan customer is someone who has no passion whatsoever, just a desire to work hard at something that looks good on a spreadsheet. Maybe the loan customer wants to start a dry-cleaning store or invest in a fast-food franchise—boring stuff. That’s the person you bet on. You want the grinder, not the guy who loves his job.

For most people, it’s easy to be passionate about things that are working out, and that distorts our impression of the importance of passion. I’ve been involved in several dozen business ventures over the course of my life, and each one made me excited at the start. You might even call it passion.

The ones that didn’t work out—and that would be most of them—slowly drained my passion as they failed. The few that worked became more exciting as they succeeded. For example, when I invested in a restaurant with an operating partner, my passion was sky high. And on day one, when there was a line of customers down the block, I was even more passionate. In later years, as the business got pummeled, my passion evolved into frustration and annoyance.

On the other hand, Dilbert started out as just one of many get-rich schemes I was willing to try. When it started to look as if it might be a success, my passion for cartooning increased because I realized it could be my golden ticket. In hindsight, it looks as if the projects that I was most passionate about were also the ones that worked. But objectively, my passion level moved with my success. Success caused passion more than passion caused success.

So forget about passion. And while you’re at it, forget about goals, too.

Just after college, I took my first airplane trip, destination California, in search of a job. I was seated next to a businessman who was probably in his early 60s. I suppose I looked like an odd duck with my serious demeanor, bad haircut and cheap suit, clearly out of my element. I asked what he did for a living, and he told me he was the CEO of a company that made screws. He offered me some career advice. He said that every time he got a new job, he immediately started looking for a better one. For him, job seeking was not something one did when necessary. It was a continuing process.

This makes perfect sense if you do the math. Chances are that the best job for you won’t become available at precisely the time you declare yourself ready. Your best bet, he explained, was to always be looking for a better deal. The better deal has its own schedule. I believe the way he explained it is that your job is not your job; your job is to find a better job.

This was my first exposure to the idea that one should have a system instead of a goal. The system was to continually look for better options.

Throughout my career I’ve had my antennae up, looking for examples of people who use systems as opposed to goals. In most cases, as far as I can tell, the people who use systems do better. The systems-driven people have found a way to look at the familiar in new and more useful ways.

To put it bluntly, goals are for losers. That’s literally true most of the time. For example, if your goal is to lose 10 pounds, you will spend every moment until you reach the goal—if you reach it at all—feeling as if you were short of your goal. In other words, goal-oriented people exist in a state of nearly continuous failure that they hope will be temporary.

If you achieve your goal, you celebrate and feel terrific, but only until you realize that you just lost the thing that gave you purpose and direction. Your options are to feel empty and useless, perhaps enjoying the spoils of your success until they bore you, or to set new goals and re-enter the cycle of permanent presuccess failure.

I have a friend who is a gifted salesman. He could have sold anything, from houses to toasters. The field he chose (which I won’t reveal because he wouldn’t appreciate the sudden flood of competition) allows him to sell a service that almost always auto-renews. In other words, he can sell his service once and enjoy ongoing commissions until the customer dies or goes out of business. His biggest problem in life is that he keeps trading his boat for a larger one, and that’s a lot of work.

Observers call him lucky. What I see is a man who accurately identified his skill set and chose a system that vastly increased his odds of getting “lucky.” In fact, his system is so solid that it could withstand quite a bit of bad luck without buckling. How much passion does this fellow have for his chosen field? Answer: zero. What he has is a spectacular system, and that beats passion every time.

As for my own system, when I graduated from college, I outlined my entrepreneurial plan. The idea was to create something that had value and—this next part is the key—I wanted the product to be something that was easy to reproduce in unlimited quantities. I didn’t want to sell my time, at least not directly, because that model has an upward limit. And I didn’t want to build my own automobile factory, for example, because cars are not easy to reproduce. I wanted to create, invent, write, or otherwise concoct something widely desired that would be easy to reproduce.

My system of creating something the public wants and reproducing it in large quantities nearly guaranteed a string of failures. By design, all of my efforts were long shots. Had I been goal-oriented instead of system-oriented, I imagine I would have given up after the first several failures. It would have felt like banging my head against a brick wall.

But being systems-oriented, I felt myself growing more capable every day, no matter the fate of the project that I happened to be working on. And every day during those years I woke up with the same thought, literally, as I rubbed the sleep from my eyes and slapped the alarm clock off.

Today’s the day.

If you drill down on any success story, you always discover that luck was a huge part of it. You can’t control luck, but you can move from a game with bad odds to one with better odds. You can make it easier for luck to find you. The most useful thing you can do is stay in the game. If your current get-rich project fails, take what you learned and try something else. Keep repeating until something lucky happens. The universe has plenty of luck to go around; you just need to keep your hand raised until it’s your turn. It helps to see failure as a road and not a wall.

I’m an optimist by nature, or perhaps by upbringing—it’s hard to know where one leaves off and the other begins—but whatever the cause, I’ve long seen failure as a tool, not an outcome. I believe that viewing the world in that way can be useful for you too.

Nietzsche famously said, “What doesn’t kill us makes us stronger.” It sounds clever, but it’s a loser philosophy. I don’t want my failures to simply make me stronger, which I interpret as making me better able to survive future challenges. (To be fair to Nietzsche, he probably meant the word “stronger” to include anything that makes you more capable. I’d ask him to clarify, but ironically he ran out of things that didn’t kill him.)

Becoming stronger is obviously a good thing, but it’s only barely optimistic. I do want my failures to make me stronger, of course, but I also want to become smarter, more talented, better networked, healthier and more energized. If I find a cow turd on my front steps, I’m not satisfied knowing that I’ll be mentally prepared to find some future cow turd. I want to shovel that turd onto my garden and hope the cow returns every week so I never have to buy fertilizer again. Failure is a resource that can be managed.

Before launching Dilbert, and after, I failed at a long series of day jobs and entrepreneurial adventures. Here are just a few of the worst ones. I include them because successful people generally gloss over their most aromatic failures, and it leaves the impression that they have some magic you don’t.

When you’re done reading this list, you won’t have that delusion about me, and that’s the point. Success is entirely accessible, even if you happen to be a huge screw-up 95% of the time.

Read the entire article here.

Image courtesy of Google Search.

Cluttered Desk, Cluttered Mind

Life coach Jayne Morris suggests that de-cluttering your desk, attic or garage can add positive energy to your personal and business life. Morris has coached numerous business leaders and celebrities in the art of clearing clutter.

[div class=attrib]From the Telegraph:[end-div]

According to a leading expert, having a cluttered environment reflects a cluttered mind and the act of tidying up can help you be more successful.

The advice comes from Jayne Morris, the resident “life coach” for NHS Online, who said it is no good just moving the mess around.

In order to clear the mind, unwanted items must be thrown away to free your “internal world”, she said.

Ms Morris, who claims to have coached celebrities to major business figures, said: “Clearing clutter from your desk has the power to transform you business.

“How? Because clutter in your outer environment is the physical manifestation of all the clutter going on inside of you.

“Clearing clutter has a ripple effect across your entire life, including your work.

“Having an untidy desk covered in clutter could be stopping you achieving the business success you want.”

She is adamant cleaning up will be a boon even though some of history’s biggest achievers lived and worked in notoriously messy conditions.

Churchill was considered untidy from a boy throughout his life, from his office to his artist’s studio, and the lab where Alexander Fleming discovered penicillin was famously dishevelled.

Among the recommendations is that the simply tidying a desk at work and an overflowing filing cabinet will instantly have a positive impact on “your internal world.”

Anything that is no longer used should not be put into storage but thrown away completely.

Keeping something in the loft, garage or other part of the house, does not help because it is still connected to the person “by tiny energetic cords” she claims.

She said: “The things in your life that are useful to you, that add value to your life, that serve a current purpose are charged with positive energy that replenishes you and enriches your life.

“But the things that you are holding on to that you don’t really like, don’t ever use and don’t need anymore have the opposite effect on your energy. Things that no longer fit or serve you, drain your energy.”

Briton has long been a nation of hoarders and a survey showed that more than a million are compulsive about their keeping their stuff.

Brains scans have also confirmed that victims of hoarding disorder have abnormal activity in regions of the brain involved in decision making – particularly in what to do with objects that belong to them.

[div class=attrib]Read the entire article following the jump.[end-div]

[div class=attrib]Image: Still from Buried Alive Season 3, TLC.[end-div]

Sales Performance and Extroversion

There is a common urban legend that to be successful in most deeds one needs to be an extrovert. In business, many of us are led to believe that all successful CEOs and corporate-titans are extroverts. We also tend to think that to be a top-flight sales person one also needs to be an out-and-out party-animal. Well it is a myth, now backed up by the most comprehensive meta-study (a study of studies) to date on extroversion and business performance.

[div class=attrib]From the Washington Post:[end-div]

Spend a day with any leader in any organization, and you’ll quickly discover that the person you’re shadowing, whatever his or her official title or formal position, is actually in sales. These leaders are often pitching customers and clients, of course. But they’re also persuading employees, convincing suppliers, sweet-talking funders or cajoling a board. At the core of their exalted work is a less glamorous truth: Leaders sell.

So what kind of personality makes the best salesperson — and therefore, presumably, the most effective leader?

Most of us would say extroverts. These wonderfully gregarious folks, we like to think, have the right stuff for the role. They’re at ease in social settings. They know how to strike up conversations. They don’t shrink from making requests. Little wonder, then, that scholars such as Michael Mount of the University of Iowa and others have shown that hiring managers select for this trait when assembling a sales force.

The conventional view that extroverts make the finest salespeople is so accepted that we’ve overlooked one teensy flaw: There’s almost no evidence it’s actually true.

When social scientists have examined the relationship between extroverted personalities and sales success — that is, how often the cash register rings — they’ve found the link to be, at best, flimsy. For instance, one of the most comprehensive investigations, a meta-analysis of 35 studies of nearly 4,000 salespeople, found that the correlation between extroversion and sales performance was essentially zero (0.07, to be exact).

Does this mean instead that introverts, the soft-spoken souls more at home in a study carrel than on a sales call,are more effective? Not at all.

The answer, in new research from Adam Grant, the youngest tenured professor at the University of Pennsylvania’s Wharton School of Management, is far more intriguing. In a study that will be published later this year in the journal Psychological Science, Grant collected data from sales representatives at a software company. He began by giving reps an often-used personality assessment that measures introversion and extroversion on a 1-to-7 scale, with 1 being most introverted and 7 being most extroverted.

Then he tracked their performance over the next three months. The introverts fared worst; they earned average revenue of $120 per hour. The extroverts performed slightly better, pulling in $125 per hour. But neither did nearly as well as a third group: the ambiverts.

Ambi-whats?

Ambiverts, a term coined by social scientists in the 1920s, are people who are neither extremely introverted nor extremely extroverted. Think back to that 1-to-7 scale that Grant used. Ambiverts aren’t 1s or 2s, but they’re not 6s or 7s either. They’re 3s, 4s and 5s. They’re not quiet, but they’re not loud. They know how to assert themselves, but they’re not pushy.

[div class=attrib]Read the entire article following the jump.[end-div]