Book Short: Sequel Not Worth It

Mastering the 7 Essentials of High Growth Companies, by David Thomson, was a poor sequel to the solid Blueprint to a Billion [review] [buy]– and not worth reading if you’ve read the original.  It was very short for its price and contained mildly interesting examples of “blueprint companies” that augmented the original book but didn’t uncover any new material or add any thinking to the mix.  Basically, it was like another couple chapters that should have been part of Blueprint.

It is not a bad buy in lieu of the original if you haven’t read either one yet, as Blueprint is a bit longer than necessary, but otherwise, you can skip this one.

On a side note – the author’s interactive scorecard is a decent diagnostic tool (though also, I am sure, a lead gen tool for his consulting business).

Book Short:  Culture is King

Tony Hsieh’s story, Delivering Happiness (book, Kindle), is more than just the story of his life or the story of Zappos. It’s a great window into the soul of a very successful company and one that in many ways has become a model for great culture and a great customer service model.  It’s a relatively quick and breezy read, and it contains a handful of legendary anecdotes from Zappos’ history to demonstrate those two things — culture and customer service — in action.

As Hsieh himself says in the book, you can’t copy this stuff and believe it will work in your company’s environment as it does in Zappos’.  You have to come up with these things on your own, or better yet, you have to create an environment where the company develops its own culture and operating system along the broad lines you lay out.  I think Return Path has many similarities with Zappos in how we seek out WOW experiences and in our Core Values, as well as the evolutionary path we took to get to those places.  But as much as I enjoyed reading about a like-minded company, I also recognized the specific things that were different and had a good visceral understanding as to WHY the differences exist.

It is the rare company that gets to $1 billion in revenue ever – let alone within a decade.  For that reason alone, this is a worthwhile read.  But if you are a student of organizational culture and believe in the power of values-driven organizations, this is good affirmation and full of good examples.  And if you’re a doubter of the power of those things, this might just convince you to think twice about that!

Book Short:  More on Email Marketing

My friend Bill Nussey’s The Quiet Revolution in Email Marketing is a good read for those in the industry.  It’s a little different in focus than our recently published book, Sign Me Up!, and in many ways is a good complement.

Bill develops a good framework for Customer Communication Management (CCM) based on his experience as CEO of SilverPop, one of the leading email marketing companies.  He builds on Seth Godin’s permission framework and applies it directly to email marketing, point by point.  He addresses head on every email marketer’s nightmare, when you tell someone what you do for a living, and the person replies “oh, you’re a spammer.”

The book also has a wonderful quote from Bill’s SilverPop colleague Elaine O’Gorman:  “Locking down email policies and enforcement too tightly i like cooking a potato in the microwave.  If you don’t poke some holes in the potato before turning on the microwave, you’ll be doing a lot of clearning up afterwards.”

Book Short:  And It’s Not Just Because I’m In It

Debbie Weil’s The Corporate Blogging Book is a good super quick read for any CEO or senior executive who is contemplating starting a blog — or even better, for those who have decided not to do so.

Weil’s writing style is great and very informal (blog-like, in fact) – a representative snippet is where she tells readers that there are two types of information to worry about posting on a blog, in her words, “stuff you don’t to reveal and stuff you could get sued for.”  And her range of topics is great and deals with issues head-on. Things like fear of losing control, time commitment, and ghost writing are all well covered.

Chapter 8 also includes a great Cliff’s Notes guide to web 2.0 technologies — RSS, podcasting, wikis, tagging — which is useful if you still Feel Like a Luddite about those things.

I did contribute a couple interviews to the book, as did most of the other oft-cited CEO bloggers like Mark Cuban and Jonathan Schwartz in whose company I am somewhat embarrassed and humbled to be. But don’t let that deter you from picking up a copy if you are in the target audience!

Book Short:  Virtuous Cycle

Danny Meyer’s Setting the Table: The Transforming Power of Hospitality in Business is a fun read if you’re a New Yorker who eats out a lot; a good read for entrepreneurs around scaling leadership skills as the business grows; and a great read for anyone who runs a serious customer service-oriented organization.  I’ve eaten at all of his restaurants multiple times over the years except for the new ones at MOMA (perhaps a few too many times at the Shake Shack), and while I like some more than others (perhaps the Shake Shack a bit too much), they all do have great hospitality as a common theme.

While there are a lot of good lessons in the book, Meyer talks about something he calls the Virtuous Cycle of Enlightened Hospitality that matches the general hierarchy of constituents or stakeholders in a business that I refer to at Return Path:   employees, customers, community, suppliers, investors.  His general point is that if you have happy employees, they make for happy customers, and returns for investors will follow.  While the specifics may or not be true of all businesses, I bet the first and last item are — especially for service-oriented businesses in any industry.  I wish we had a better handle on the Community aspect at Return Path, but we at least do an OK job at it, especially given the geographic diversity within the company.

(Note this was one of Fred’s favorite parts of the book as well from his review — nice to see a professional investor in agreement!)

Book Short:  Entrepreneurs in Government

Leadership and Innovation:  Entrepreneurs in Government, edited by a professor I had at Princeton, Jim Doig, is an interesting series of mini-biographies of second- and third-tier government officials, mostly from the 1930s through the 1970s.  The book’s thesis is that some of the most interesting movers and shakers in the public arena (not elected officials) have a lot of the same core skills as private sector entrepreneurs.

The thesis is borne out by the book, and the examples are interesting, if for no other reason than they are about a series of highly influential people you’ve probably never heard of.  The guy who ran the Port Authority of New York for 30 years.  The guy who built the Navy’s fleet of nuclear submarines.  The head of NASA who put a man on the moon.

The biggest gap I identified between the success of these individuals and business entrepreneurs is the need for cultivation of direct relationships with congressional leaders, true in almost all cases.  I’m not sure there’s a proper analog — shareholders, maybe — but that’s clearly a skill that is required for the heads of agencies to succeed with their political patrons.

It’s an interesting read overall, particularly if you’re an entrepreneur who is considering a future career change into government.

Book Short – A Smattering of Good Ideas that further my Reboot path

Ram Charan’s The Attacker’s Advantage was not his best work, but it was worth the read.  It had a cohesive thesis and a smattering of good ideas in it, but it felt much more like the work of a management consultant than some of his better books like Know How (review, buy), Confronting Reality (review, buy), Execution (review, buy), What the CEO Wants You to Know ( buy), and my favorite of his that I refer people to all the time, The Leadership Pipeline (review, buy).

Charan’s framework for success in a crazy world full of digital and other disruption is this:

Perceptual acuity (I am still not 100% sure what this means)

1. A mindset to see opportunity in uncertainty
2. The ability to see a new path forward and commit to it
3. Adeptness in managing the transition to the new path
4. Skill in making the organization steerable and agile

The framework is basically about institutionalizing the ability to spot pending changes in the future landscape based on blips and early trends going on today and then about how to seize opportunity once you’ve spotted the future.  I like that theme.  It matches what I wrote about when I read Mark Penn’s Microtrends (review, buy) years ago.

Charan’s four points are important, but some of the suggestions for structuring an organization around them are very company-specific, and others are too generic (yes, you have to set clear priorities).  His conception of something he calls a Joint Practice Session is a lot like the practices involved in Agile that contemporary startups are more likely to just do in their sleep but which are probably helpful for larger companies.

I read the book over a year ago, and am finally getting around to blogging about it.  That time and distance were helpful in distilling my thinking about Charan’s words.  Probably my biggest series of takeaways from the book – and they fit into my Reboot theme this quarter/year, is to spend a little more time “flying at higher altitude,” as Charan puts it:  talking to people outside the company and asking them what they see and observe from the world around them; reading more and synthesizing takeaways and applicability to work more; expanding my information networks beyond industry and country; creating more routine mechanisms for my team to pool observations about the external landscape and potential impacts on the company; and developing a methodology for reviewing and improving predictions over time.

Bottom line:  like many business books, great to skim and pause for a deep dive at interesting sections, but not the author’s best work.

A Sense of Urgency, by John Kotter, is a solid book – not his best, but worth a read and happily short, as most business books should be.  I originally was going to hold off on writing this post until I had more time, but the subject matter alone made me think that was a mistake and that I should write it while it’s fresh in my mind.  <g>

The three tools to fight complacency are the organizing framework for the book — bring the outside in, behave with urgency every day, and turn crises into opportunities — are all good thoughts, and good reminders of basic management principles.  But there were a couple other themes worth calling out even more.

First up, the notion that there is a vicious cycle at play in that urgency begets success which creates complacency which then requires but does not beget urgency.  The theme is really that success can drive arrogance, stability, and scale that requires inward focus — not that success itself is bad, just that it requires an extra level of vigilance to make sure it doesn’t lead to complacency.  I’ve seen this cycle at different times over the years in lots of organizations, and it’s one of the reasons that if you look at the original companies on the Dow Jones Industrials index when it was expanded from 12 to 30 around 100 years ago, only one of them (GE) still exists.

Second, that busy-ness can masquerade as urgency but actually undermines urgency.  A full calendar doesn’t mean you’re behaving with urgency.  Kotter’s example of an Indian manager is great:

If you watch the Indian manager’s behavior carefully and contrast it with the hospital executive’s, you find that the former relentlessly eliminates low-priority items from his appointment diary. He eliminates clutter on the agenda of the meetings that do make it into his diary. The space that is freed up allows him to move faster. It allows him to follow up quickly on the action items that come out of meetings. The time freed up allows him to hold impromptu interactions that push along important projects faster. The open space allows him to talk more about issues he thinks are crucial, about what is happening with customers and competitors, and about the technological change affecting his business.

Finally, Kotter’s theme of “Urgent patience” is a wonderful turn of phrase.  As he says,

It means acting each day with a sense of urgency but having a realistic view of time. It means recognizing that five years may be needed to attain important and ambitious goals, and yet coming to work each day committed to finding every opportunity to make progress toward those goals.

How true is that?  It’s not just that big ships take a long time to turn…it’s that big opportunities take a long time to pursue and get right.  If they didn’t…everyone would do them!  Urgent patience is what allows you to install a bias for action in your team without causing panic and frenzy, which is never productive.

Thanks to my friend Chad Dickerson for recommending this book, a great read as part of Operation Reboot Matt.

Thanks to my friend and long-time former Board member Jeff Epstein, I recently downed a new book, You’re in Charge – Now What?, by Thomas Neff and James Citrin.  I’m glad I read it.  But it was one of those business books that probably should have just been a Harvard Business Review article.  It’s best skimmed, with helpful short summaries at the end of every chapter that you could blow through quickly instead of hanging on every word. 

The authors’ 8-step plan is laid out as:

1. Prepare yourself during the countdown
2. Align expectations
3. Shape your management team
4. Craft your strategic agenda
5. Start transforming culture
6. Manage your board/boss
7. Communicate
8. Avoid common pitfalls

Ok fine, those make sense on the surface. Here are three things that really stood out for me from the book:

First, “working” before you’re officially working – the countdown period. I tried hard NOT to do this when I was between things, but I’m glad I did the things I did, and now, I wish I had done more. The most poignant phrase in the book is “scarce time available during your first hundred days.” That is an understatement. As my “to read” pile grows and grows and grows with no end in sight…I wish I had done more pre-work.

Second, remember that in every interaction, you are being evaluated as much as you are evaluating. And note that for many people, they will be thinking very critically, things like “do I want to work with this person…is he/she showing signs that he/she wants to work with me?” Yes, we all know as leaders, we live in a fishbowl. But I think that may be even more true during the first couple months on the job.

Finally, this phrase stood out for me: “Acknowledging and in some cases embracing your predecessor can sustain a sense of continuity within the organization and instill a sense of connectivity with employees’ shared past.” There is frequently a temptation to focus on things that need change, which invariably there are…and which invariably you will hear from people who are happy to find a willing new ear to listen to them. But this posture of acknowledge/embrace is especially true in my case, where my predecessor is the founder and 25-year CEO who continues on as our active chairman.

I know there are a ton of books like this on the market, and while I’ve only read this one, I’d say that if you’re starting a new CEO or executive-level job, this is a good one to at least skim to get some ideas.

Book Short:  Way, Way Beyond Books

The Everything Store: Jeff Bezos and the Age of Amazon, by Brad Stone, was a great read.  Amazon is a fascinating, and phenomenally successful company, and Jeff is a legendary technology leader.  The Everything Store is a company and personal biography and totally delivers.

Forget about the fact that Amazon is now almost $100B in revenues and still growing like mad.  I find it even more amazing that a single company could be the largest ecommerce site on the planet while successfully pioneering both cloud computing services and e-readers.  The stories of all these things are in the book.

As a CEO, I enjoyed reading more of the vignettes behind the things that Amazon is reputationally known for in the tech world – doors as desks, their unique meeting formats, the toughness of the culture, the extensive risk taking of growth over profits, and what works and does not work about Bezos’ authoritative and domineering style.  And it’s always great to be reminded that even the biggest and best companies had to cheat death 10 times over before “arriving.”

This is good fun and learning for anyone in the business world.  It reminded me most of Walter Isaacson’s biography of Steve Jobs ,which I wrote about here, although it’s more of a company history and less of a biography than the Jobs book.

Book Short:  Legal Aid

The Entrepreneur’s Guide to Business Law, by Constance Bagley (HBS) and Craig Dauchy (Cooley Godward), while not exactly a page-turner, is a great reference book for even experienced CEOs. It’s pretty broad in its coverage of all major legal issues an entrepreneur will face, from patent law to firing employees.

Remember, you may make fun of lawyers on occasion or grips about their fees, but they DID attend law school for three years, after all. If nothing else, the $20 on this book will almost certainly save you at least 10x that in reduced legal fees someday, for something.