Business

How entrepreneurs can be better leaders 

Entrepreneurs aren’t always known for their people skills. And frankly, neither are engineers. So I felt somewhat challenged recently when I was invited to speak to students at the W Booth School of Engineering at McMaster University, which focuses on creating not just builders, but leaders.

Product-obsessed engineers and always-racing-somewhere entrepreneurs aren’t generally known for having the open, engaging and empowering management style that seems so critical in business today. Still, entrepreneurs thrive on change, so understanding people – and helping them grow  is just one more skill set we have to adopt. 

So I thanked Professor David Potter for his courage in handing me the microphone in front of his classroom of emerging minds, and tried to persuade them that leadership is much more than just getting things done. 

In recent years, I have spent more time  in my own company and with other organizations  helping people adapt their leadership approach to a world of constant, unpredictable change. And as I explained to these engineering students, addressing change succeeds or fails by understanding a concept you rarely learn in the classroom: context.

According to Oxford, “context is a frame of reference – a device you use to extract meaning from random or imperfect information. For me, “context” is the most important word in businessLeaders always need to understand the needs, concerns and demandsthat shape their actions and attitudes – as well as those factors affecting the people you do business with. Knowing all of these different motivations and frames of reference puts you in a position to find common ground and move ahead together.

Context is especially important in managing people. How can you help someone change their behaviour if you don’t take the time to understand why theyve been acting that way” in the first place?

Contextually speaking, see two stages thaentrepreneurs generally go through – andthe quantum leap they need to take to evolve their leadership style. I offer the following framework not just for entrepreneurs, but for those who work with them. 

  1.  The Island Leader: Many entrepreneurs isolate themselves when making decisions within their own businesses – for two fundamental reasons. The first is that entrepreneurs of my generation began their business journeys in a top-down age. Our bosses told us: Keep your head down, put one foot in front of the other, shut your mouth. And in 30 years, they’ll give you a gold watch.” It was an era when business success was created by followingnot standing out. Naturally, this early learning affects the waymany entrepreneurs they deal with people today – especially after fighting so hard to establish their own firms.

    Secondly, who exactly are entrepreneurs leading when we launch our companies? Usually just a few true believers – and often, no one at all. So how can entrepreneurs become great leaders when we so often begin as islands unto ourselves?

  2. The Treehouse Leader: As our companies growentrepreneurs hire other people to work “for” us. Having scant leadership experience, we tend to build our own treehouse on our business island and lob directions from above: “Do this, do that. No, that was yesterday – do this instead.” When you establish your own business, founded on your own personality and worldview, it’s not easy to open up and work more collaboratively.Entrepreneurs’ thick skin hides a lot of bruises. We have heard all the objections that come with trying to do things differently: “That’s a stupid idea. This will never work.” 

But a business model honed in the 20th century doesn’t fit any more. The island and the treehouse have to go. Entrepreneurs must open up and recognize that more heads are better than one.

Twenty years ago, the business world spun more slowly. With longer product lifecycles,you could build a viable business by coming up with one better idea every few yearsBut today’s customers demand constant innovation, customization, rapid prototyping. No leader can do all that alone.

Fortunately, entrepreneurs trying to up their game have natural allies: millennials. I can hear your startled protests, but I don’t see the new generation as entitled, cynical or smug. I associate millennials with communication and collaboration

They have grown up as Gen C, the connected generation. Through technology, they participate in any conversation, on any topic, anywhere in the world. They don’t accept Shut up and keep your head down.” We leaders must adapt. We must learn to converse instead of command.

Respectful conversation is hard – which is probably why our bosses avoided it. Conversing requires mutual respect. If you ask for an opinion, you must treat it with care, and explain why you agree or disagree. Offering a shrug – or no reaction at all – guarantees that conversation will continue without you. 

Did the students get my message? I think they were delighted to be told that their preferred method of communication – frank, fearless and always on – will eventually win in the workplace. I just hope their bosses are fast learners.

No comments

To become truly innovative, Canadians need to become better at thinking creatively

Attractive businesswoman in clean room with city view looking at whiteboard with colorful sketch. Creative and analytical thinking concept. 3D Rendering

Originally published on March 20, 2017 as a Guest Column in The Globe and Mail: http://www.theglobeandmail.com/report-on-business/small-business/sb-managing/ottawa-can-help-but-to-become-truly-innovative-canada-needs-to-embrace-entrepreneurship/article34348521/

With the federal government getting set to unveil its new innovation strategy in its March 22 budget, a scholarly article on “Canada’s Low-Innovation Equilibrium” has asked whether anything short of a crisis can jump-start our efforts to produce the better, smarter products and services we need to keep our economy growing.

The author is Peter Nicholson, one of our brainier Canadians: a physicist, computer-science prof, banker, former Nova Scotia MLA and policy adviser to former Prime Minister Paul Martin. In a highly readable article in the journal Canadian Public Policy, he points out that the business community’s generally downstream, “branch-plant” status has enabled Canadians to maintain a prosperous standard of living despite neglecting the necessary business of developing new products and services. That would explain why a century of policy efforts to stimulate innovation have failed.

But we may not be able to coast much longer. Pointing to “transformative” new technologies such as IT, biotech and nanotech, as well as the need for more and benign energy solutions, he publicly asks how long our business and political leaders can keep neglecting innovation.

I do not question Dr. Nicholson’s analysis. But he is an intellectual, firmly tied into our academic-government-corporate elite, and I believe he’s missing something. Innovation isn’t just corporate R&D flowing out of tax policy. Innovation is an attitude. It’s a way of looking at all aspects of life around us – problems, constraints, delights and discoveries – and wondering how you can use them to create new and better ideas, processes, products and services.

For most of us, business or individual, the greatest innovations will not spring from laboratory experiments or quantum computing. They come from finding new ways to do things better.

Case in point: two of the best-selling products coming out of the ABC-TV show Shark Tank are as humble as you can imagine. Consider “Scrub Daddy,” a smiley-faced scrubbing tool that changes its texture with the temperature of the water you wash with. Inventor Aaron Krause has now built a company around his silly sponge with a portfolio of innovative household products, many sourced from an inventive public.

The other breakthrough: the Simply Fit Board exercise board, developed by a mother and daughter team. The simply curved balance board lets you strengthen your core while doing basic twists and squats. The plastic, neon-coloured boards cost $9 (U.S.) to produce and sell for $40 at Amazon and Wal-mart, a profit margin that enticed investors Kevin O’Leary and Lori Greiner into a bidding war.

I’m not saying that big science and corporate R&D aren’t important. But as the politicians and economists argue over policies and incentives, Ottawa must acknowledge that individual Canadians and entrepreneurs have a huge role to play in boosting innovation. Let’s find creative ways to turn Canadians into more active, curious, creative thinkers and tinkerers. (Look at how the CBC’s Dragons’ Den, the precursor to Shark Tank, has stimulated entrepreneurial creativity.)

And let’s also remember that to become expert innovators, Canadians must do more than come up with good ideas. They must actively bring them to market – which means learning more about business models, market research, production, finance, selling and marketing. These skills must be taught in schools and inculcated throughout society. The federal government is not responsible for education, but it has many levers it can pull – such as workforce development and corporate incentives to better understand market need and product potential, and sponsorship of national pitch contests – to expose more Canadians to the fun and profit of entrepreneurship and creativity.

Bottom line: Innovation is about asking questions, defying social norms, creative thinking, understanding other people’s needs, brainstorming new business models, and learning to be flexible and resourceful when market testing shreds your dreams. These are all apolitical but essential life skills that we will need to prosper in an increasingly competitive world. Innovation is not just for ivory towers, but for kitchen tables, spare bedrooms and garages across the country.

Ken Tencer is chief executive officer of design-driven strategy firm Spyder Works Inc. and the co-author of two books on innovation, including the bestseller Cause a Disturbance. He holds the Institute of Corporate Directors certification (ICD.D). Follow him on Twitter at @90per centRule.

No comments

How a hackathon can encourage your employees to innovate

Group Of Multi-Ethnic People Working On Digital Devices Around Table

Originally published on March 16, 2017 as a Guest Column in The Globe and Mail: http://www.theglobeandmail.com/report-on-business/small-business/sb-managing/hackathons-arent-just-for-hackers-any-more/article34146640/ 

Everyone in business has heard the expression that if you’re not disrupting your market, someone else will soon be disrupting you. But this raw challenge doesn’t help most leaders understand how they’re supposed to get started in the creative-destruction business.

But Steven Stein has figured it out. The chief executive officer of Toronto-based Multi-Health Systems Inc. has created an in-house “hackathon” to encourage innovative thinking and transform ideas into new products.

Stein is a true believer in creative destruction. He founded MHS 33 years ago to disrupt the psychological-testing industry by automating conventional paper-based tests for the personal computer. Today, MHS is a global industry leader, with 160 employees and clients in more than 75 countries. But Stein knows his company remains vulnerable to new entrepreneurs with better ideas – so he’s shaking up his team to ensure they develop those bold new products first.

It was an off-site strategy session for senior leaders that launched MHS’s innovation project. “Two years back, we had a presentation on disruption,” Stein said. “We went home and had nightmares about how new people could kick us out of the market.”

Stein and his team knew hackathons were popular, if sometimes messy, events that help small teams turn new ideas into working prototypes fast. Even when they don’t produce new products, hackathons can be powerful problem-solving exercises that can build positive attributes such as agility, risk tolerance and trust. So Stein appointed a team, led by president Hazel Wheldon, in the summer of 2015 to put MHS on the hackathon circuit – and make it fun and engaging.

Since then, MHS has held two hackathons at its Toronto headquarters, and created a five-person “innovation hub” to select the best ideas and turn them into customer-ready products. Innovation is a long game, and the first market tests are still in the field. But Stein believes the process has already been successful. “The biggest benefit is the excitement it created,” he said. “People loved working with new people. It’s been worth it just for the engagement, not just the products we got out of it.”

Could your company pull off a similar innovation coup? Here’s how MHS did it.

  • After researching how other companies managed innovation events, MHS’s hackathon planners developed guidelines and rules. They decided on a one-day hackathon on a January Monday – with the 15 teams competing in a “Demo Day” the following Friday, in conjunction with MHS’s annual awards dinner.
  • Teams formed in groups of five to eight in early fall, so they would have lots of time to develop ideas and research solutions prior to the big day. To help the teams focus, planners identified four sectors as most likely to be disrupted: big data; mobile apps; gamification; and process improvement.
  • As the employee teams took shape (each one restricted to one programmer and one employee from user experience), the planners scheduled a series of “lunch and learns” through the fall. Topics included creating prototypes, writing business plans and making killer presentations.
  • The incentives? The team with the most promising idea (as judged by Stein and a panel of internal and external judges) would win $5,000. There would also be a $2,000 second prize, and a third prize of $1,000.

On hackathon day in January, 2016, the 15 teams had until 6 p.m. to finalize a prototype and hammer out a business plan. MHS supplied food and colour-coded team T-shirts, creating a festive atmosphere. Participants were laughing, sweating, debating and tweeting – so much so that competitors started noticing. For 2017, MHS had to say no to tweets that gave too much away.

All teams presented to the judging panel on the following Friday. Each team was allowed a five-minute presentation, followed by five minutes for answering questions. Stein was thrilled by the winning ideas: an inexpensive “candidate competencies” test for employers to help MHS hack its way into a highly lucrative market; a mobile “early warning” solution that let psychologists share with patients (or their parents) preliminary test results in minutes instead of weeks; and the identification of new markets for some of the firm’s underused mental-health surveys through sales to the insurance industry.

Stein said some of these ideas might have daunted the team prior to the hackathon. “But now these guys have mapped them out. They said: ‘We can do it. Here’s how.’ ”

The next step was for the implementation team to review the finalists’ ideas and adopt the most promising projects. For now, MHS is funding this project through unbudgeted foreign-exchange gains; Stein hopes the group will start paying its way before the Canadian dollar turns up again.

The innovation hub – two psychologists, two programmers and a UX person – fine-tuned initial prototypes for hand-off to sales, which arranged pilot programs with real customers. The team set itself quarterly goals to ensure it was doing its job; in innovation, knowing what to stop working on is just as important as spotting winners.

“Over all, there are eight or nine projects we’re moving ahead with,” Stein said. With two hackathons now under his belt, a pipeline of new projects and a re-engaged work force, he said the whole process has been a winner. “It’s turned us from a disruptee to a disruptor.”

Ken Tencer is chief executive officer of design-driven strategy firm Spyder Works Inc. and the co-author of two books on innovation, including the bestseller Cause a Disturbance. He holds the Institute of Corporate Directors certification (ICD.D). Follow him on Twitter at @90percentRule.

No comments