When Weak Ties are Strong

NOTE from Phil: What follows is an excerpt from the book The Idea Hunter by Andy Boynton and Bill Fischer with William Bole. It’s an academic look at connections, for all of you who want more proof you should make time to connect with smart people. Enjoy!

Idea Hunter Jacket When Weak Ties are StrongDecades of statistical research have demonstrated that professionals need to think elastically about the people in their idea networks.

For example, repeated studies have shown that the longer a project team stays together without significant changes in its composition, the less likely it is to come up with ideas that lead to innovations. This is largely because members of long-running teams get into the habit of culling their ideas from a narrow band of sources: one another. They’re less likely to communicate with people working on other projects and in other departments, and professionally through other channels outside the organization. They’re less likely to come up with fresh solutions to problems.

People on your team would fall into the category of “strong ties,” meaning that you and they belong to overlapping networks of information and ideas. Someone in a different specialty altogether would count as a “weak tie,” as this personal normally travels in a different set of circles organizationally or professionally. Part of achieving real diversity is to understand “The Strength of Weak Ties,” which is the title of a 1973 paper by the American sociologist Mark Granovetter.

Granovetter laid out a seminal social-networking theory that remains highly influential today. He showed that the most valuable information comes from outside a person’s usual network of contacts, through weak ties. He based his finding on interviews with hundreds of job seekers. They were far more likely to land a job through a “weak” acquaintance than through a friend, relative or coworker with whom they shared the same connections. The strong-tie contacts ordinarily spoke to roughly the same people that the job seekers spoke to, so they had more or less the same leads to offer.

In professional life, some of the best ideas will come from weak-tie individuals, whose conversational networks are different from ours. They may well have an entirely different perspective on a subject, one that expands our supply of knowledge and ideas.

People like that are very important to Idea Hunters. They are customers, acquaintances, and many others—including perfect strangers. They do not fit easily into conventional notions of where and from whom to get “expert” opinions, because they’re not experts. That’s not their function. Their role is to say things you might not otherwise hear, spark thoughts that otherwise might not come to mind. What they provide is not a substitute for expertise; it is a supplement.

For example, if you’re getting into the beer business, you’ll naturally want to learn from beer distributors, wholesalers, marketers, and others in the know. But don’t forget to talk to the guy sitting on the barstool next to you.

That’s what Jim Koch did one day in 1984 after walking into a bar at Faneuil Hall in Boston. “I was doing market research,” Koch recalled—with a laugh, because he had really walked into the establishment in need of a drink. But his thirst did not stand in the way of his Hunt. At the time he was already toying with the notion of starting a small craft brewery—his family had been in the business for a few generations. And so he grabbed a stool and began tuning in to his surroundings. He struck up a conversation with a fellow who was holding a Heineken and asked him why he was drinking that particular brew. “I like imported beer,” the man replied. Then Koch asked him how he liked the taste, and the response was surprising, given his stated preference for imported brands. “It tastes skunky,” was the response.

“Skunky” is a beer term for spoiled. At least at the time, imported beers did not have a fresh taste, only in part because they had to travel long distances to the United States. Most of the imported brands also came in clear or green bottles. (They still do, for marketing appeal.) Bit it was a problem, because hops—the key ingredient—spoils with exposure to light. That is why beer has traditionally come in darker-colored bottles, which shield the light-sensitive hops.

It was not a problem, though, for Koch. It was an incredible opportunity. He describes the conversation at Faneuil Hall as his “wow” moment when he realized that he could succeed in the high-end beer market with a fresh-tasting beer. In other words, he could take on the imports, which accounted for just 5 percent of the American beer market at that time. “Their whole business model was based on selling stale and skunky beer to Americans and trying to cover it up with this old-world imagery,” Koch told us. (As for the domestic brands, they too were often stale by the time they reached consumers, at least partly because they spent too much time in warehouses.)

The stranger at Faneuil Hall (a “weak-tie” contact) was a case in point. Evidently he was drinking Heineken for the image and prestige, even while thinking it had a spoiled taste. Talking to that man in that place, not to a wholesaler in a warehouse, was the spark of insight for Koch. He still had much to do along the way to developing his high-end product and carving out a market for it. And he would have to educate the public on the basic fact that beer is a highly perishable product. But he was well on his way. A year after the barroom conversation, Koch launched the Boston Beer Company, which is now by far the largest craft brewery in the United States.

Excerpted from THE IDEA HUNTER: How to Find the Best Ideas and Make Them Happen (Jossey-Bass; April 2011) by Andy Boynton and Bill Fischer with William Bole.

Pick up your copy of The Idea Hunter and learn more about weak ties and more!

4 Common Big Mistakes Small Businesses Make

Note from Phil: What follows is a guest post from Riley Kissel. It’s always good to learn from other’s mistakes, and this post shares 4 of the most common, and biggest, mistakes small businesses make. I hope you enjoy it!

Running a good business, regardless of what it is, always operates on the same principals. Being your own boss can be nice, but if you’re not thinking beyond the concept phase, you’re in for some hard lessons.

Probably the most common reason why new companies fail is through poor financial management. You have to run a tight ship and learn from other people’s mistakes if you ever hope to avoid some of the most common problems that small businesses fall victim to including:

Not Knowing Your Audience Understanding the consumer base that you’re trying to appeal to is a key pillar of success. Simply having a product or service isn’t enough. Whether you’re selling shoes or you’ve got a vending business, you have to know who your target audience is and what they’re interested in. Expecting that your market will find you is a quick path towards going out of business.

Launching Before You’re Ready Launching your business at the right time is really important, but what’s more important is not doing so prematurely. If you don’t have the adequate capital to start, but you get antsy and feel compelled to act, this could derail the whole thing. Before you do anything, make sure you’re in a good position to fund the day-to-day operations of your business and have everything in line. Small businesses often fail due to insufficient cash to get off the ground. Often, it’s hoped that the capital will come in, but you have to expect not to make any money for at least the first few months. Make sure you have the money you need to operate, at least in the short-term, without netting any profits.

Not Marketing Enough You can’t expect that business is going to find you. As an owner, you have to be on the clock, 24-7, working to establish business connections and building a consumer base, and you can do so through real world advertising or online approaches. Even if you’re on a tight budget, you can use social media as a platform to make people aware of your presence. Take any opportunity you can to promote yourself, even if it only translates into a few sales. Let word of mouth build, but understand that people aren’t going to know about you unless you tell them.

Thinking Short-term over Long-term At first, you have to be thinking short-term. As your business progresses and you have some capital in reserve, you can then start thinking a few steps ahead. This doesn’t come until later so at first you need to be approaching your business and changing tactics day-by-day. For example, if you have a catering business that only has one client a day, you don’t want to buy three catering vans because you want to eventually service more than one client daily. Knowing when to grow is important and you should only do so when the time is right. The reason why most businesses fail is due to the business owner. Knowing when not to act is just as important as knowing when to act.

These are some of the common pitfalls that face small businesses. You can’t afford to make these mistakes in today’s economy if you ever hope to stand the test of time. Don’t be a victim of your own design and make sure you’re running your business the smart way.

Your turn: What have YOU found is a common mistake small businesses make? Share your thoughts in the comments please.

Generosity—Your Trump Card

Note from Phil: What follows is an awesome guest post from Jodi Glickman, author ofGreat on the Job jacket thumb Generosity—Your Trump Card Great on the Job: What to Say, How to Say It. The Secrets of Getting Ahead.

Time and time again, I’m asked about the most important qualities needed to get ahead in the workplace. Is it technical prowess? Good networking skills? The right timing, or just plain good luck? I don’t think it’s any of these, actually.

Instead, I’d argue that dynamic and honed communication skills are the keys to success at work. Sure, we all need to be technically proficient to do our jobs well. But technical skills aren’t enough. They are simply “check the box” skills, meaning you’ve got to have them to get-by. But to make it to the top, to advance through an organization, to get promoted, to be compensated well—for those things you’re going to need some kick-ass communication skills.

And for that reason, you need to be generous. Excellent communicators are generous communicators—they share information readily, they share credit broadly and they share of their time and expertise selflessly.

Are you always thinking about how to make your boss’ life easier or better? If so, you’re a generous employee. Are you always leading with the punch line when you share information (so that I don’t have to guess at what you’re talking about or waste my time listening to you for 10 minutes when I only have two)? If so, you’re a generous communicator.

Here are some additional ideas of ways you can be generous and get ahead:

Think about next steps (so your boss doesn’t have to). What are you doing to move the ball forward? When you complete a project, take a moment to celebrate; then quickly shift gears to think about what comes next — implementation, execution, distribution? Don’t wait for your boss to ask the question — anticipate her questions and come with a plan of attack for moving forward. You’ll gain respect, admiration, and be thought of as the go-to guy if you’re always thinking two steps ahead.

Always ask your boss or coworker if he has a moment to speak. Just because your coworker’s office door is open doesn’t mean it’s a good time to talk. Before you launch into a dialogue about tomorrow’s meeting or start shooting off questions, ask if he’s got a minute for you. Give him an “out” if he tells you it’s actually not a good time. Graciously take your leave and offer to come back at another time that works for him… He will be so much more likely to follow up with you or pick up phone next time around if you give him an escape hatch when he really needs it.

Share credit easily. Throw around props like it’s your job. People love to hear they’re doing a great job. Make an effort to recognize your team regularly for a job well done or for extra effort. It doesn’t cost you anything. Research shows that employees care more being recognized for good work than almost anything else. So send an email to the top brass and mention the great work of your team (by name) or give them a shout out in the next staff meeting.

Give Back. Don’t let all the brilliance you’ve gathered over the years go to waste. Be gracious with your time and your expertise, and contribute to the collective learning of to those around you. Your professional highs and lows are equally valuable to those just starting out in the workplace. Concede your mistakes, highlight your proud moments, give feedback and offer guidance. Take the time and interest to help develop your junior team and build up your bench.

At the end of the day, the more people like you, the more they’ll go out on a limb for you—recommending you for a promotion, going to bat for you at review time, choosing you for high profile projects or assignments. The basic laws of karma hold true in the workplace—the more good you put out into the world, the more good that comes back into your own. So go ahead and play the generosity card; you’ll be amazed to see that it works like a charm.

Jodi Glickman photo Generosity—Your Trump CardJodi Glickman is the president and founder of Great on the Job, where she teaches people how to communicate effectively in the workplace. She is the author of Great on the Job: What to Say, How to Say It. The Secrets of Getting Ahead. (St. Martin’s Griffin; May 2011). You can follow her at @greatonthejob.

Decisive Leadership

NOTE from Phil: What follows is a guest post from a book I’m currently reading. I think the article is helpful for leaders from all disciplines and backgrounds, and is one of the more interesting concepts I’ve seen, that being a checklist for leaders. I hope you enjoy it!

Decisive Leadership

Guest post by Michael Useem, Author of The Leader’s Checklist

Leaders Checklist Cover Decisive LeadershipImagine yourself in this position: Less than five months ago, you were summoned from the private sector to join a newly formed national government. Your background is in retail; now you are heading up the nation’s mining industry. You are abroad on a state visit, still working to come up to speed, when word reaches you from your home office that there has been a mining disaster — a cave-in deep below, death toll unknown, nearly three dozen missing.

Or envision this: For decades, your financial services firm has sailed along. Not only have revenues soared; your company has also earned a treasured AAA credit rating while creating an extraordinary wealth engine: a little giant of a division that insures against debt defaults, including subprime mortgages. Continuing prosperity seems predictable, but suddenly the market implodes. Subprime mortgages turn noxious. Lehman Brothers goes under. Your AAA rating slips to AA, then A-; and with the downgrades, you have to post billions of dollars in collateral that you simply do not have. This boat is sailing straight toward a roaring waterfall, and you are standing at the helm.

Or this one: The enemy has surrendered after a four-year conflict that has left more than half a million dead, and your army commander has assigned you to arrange one of the war’s crowning moments, the formal surrender of the enemy’s most venerated army. The tone, the texture of the ceremony, the formalities of receiving the enemy — they are entirely for you to craft.

These are not, of course, hypothetical or anonymous events. Laurence Golborne, the new mining minister for the Republic of Chile, was visiting in Ecuador on the night of August 5, 2010, when his chief of staff back in Santiago sent him a simple but urgent text message: "Mine cave-in Copiapó; 33 victims." Twenty-eight hours later, at 3:30 a.m. on August 7, Golborne arrived at the remote site of the mining disaster in the Atacama desert of northern Chile. Soon, hundreds of millions of people around the globe would be witnessing one of the greatest mining rescues of all time.

Like the miners in Chile, American International Group (AIG) — the financial services giant heading for the cataract — was ultimately rescued through direct government intervention. The company was deemed "too big to fail," though it was almost too toxic to save. When the subprime mortgage market in which AIG was deeply invested began to collapse, top AIG executives had taken few protective measures. Their tone-deaf response to the tumultuous events that unfolded left the company vulnerable to one of the greatest corporate collapses in business history.

How different the actions taken by Union officer Joshua Lawrence Chamberlain when Ulysses S. Grant handed him the historic duty of coordinating a follow-up ceremony to Robert E. Lee’s April 9, 1865, surrender at Appomattox. Chamberlain decided that instead of humiliating the Confederate army, as might have been expected after four years of civil war, he would somehow salute the enemy to start a process of national reconciliation.

Two of the leaders we have just met were well prepared when summoned to moments of decision. The other, recent history showed us, was obviously not. To be sure, few of us are likely to have our mettle tested in such trying circumstances. But all of us can and should prepare for less-public crises in our own spheres of serving, to be decisive when it really counts.

My work on leadership development in the U.S. and abroad — and the work of an array of other researchers and observers — tells me that the absence of an action checklist is one of most correctable lapses in leadership. Through the simple step of creating and consistently applying the equivalent of a pilot or surgeon’s checklist, a leader is readied for whatever may come.

I have also become convinced that with leadership, as with much else, brevity is the soul of wit. Albert Einstein once described the calling of modern physics as an effort to make the physical universe as simple as possible — but not simpler. The leader’s checklist is likewise at its best when it is as bare-bones as possible — but not more so. Just fourteen mission-critical principles can define its core for most leaders, and the principles vary surprisingly little among companies or countries. 
Four of the mission-critical principles for a leader’s checklist stress having a vision of where you want the enterprise to go and then taking charge, acting strategically, and deciding decisively:

1. Articulate a Vision. Formulate a clear and persuasive vision and communicate it to all members of the enterprise.

2. Take Charge. Embrace a bias for action, of taking responsibility even if it is not formally delegated, particularly if you are well positioned to make a difference.

3. Act Strategically. Set forth a pragmatic strategy for achieving that vision both short- and long-term, and ensure that it is widely understood; consider all the players, and anticipate reactions and resistance before they are manifest.

4. Decide Decisively. Make good and timely decisions, and ensure that they are executed.

Taken together, these principles constitute a foundation for what we often deem to be decisive leadership. But they also come with an underlying proviso so vital that it should constitute a still additional principle, in my view, on everybody’s checklist. To appreciate the importance of that extra principle, we elaborate on the Confederate surrender at Appomattox (elaboration of the rescue in Chile and the failure of AIG can be found in The Leader’s Checklist).

General Grant, who had accepted the formal surrender on behalf of the Union at Appomattox, ordered a follow-up ceremony three days later, with more than 4,000 Union soldiers to be lined at attention on one side of a field. General Lee’s defeated infantry units were then to march onto the field to place their regimental flags and firearms at the foot of a Union officer in charge. For the honor of orchestrating the event and taking charge of it, Grant had designated a citizen soldier from Maine, Joshua Lawrence Chamberlain.

As the first Confederate brigade approached Union forces, Chamberlain ordered a bugle call that told Union soldiers to "carry arms" — a posture of respect in which soldiers hold the musket in their right hand with the muzzle perpendicular to their shoulders. Both Union and Confederate soldiers understood its meaning, since their military traditions had emanated from the same sources.

A Southern general riding near the front of the Confederate forces, John B. Gordon, appreciated the respectful signal that Chamberlain’s soldiers displayed toward the Rebel soldiers on their day of ignominy, and Gordon ordered the same posture to be displayed in by his own troops.

The incident became known as a "salute returning a salute," a moment remembered for years by those who witnessed or heard of it, and one that implied reunification. Some of Chamberlain’s fellow officers were angered by witnessing such a fraternal act after fighting the same soldiers on so many killing fields. And for Chamberlain himself, it was a matter of saluting those who had tried to kill him only days before.

For President Abraham Lincoln, the South’s capitulation at Appomattox constituted not only an ending point for the armed rebellion but also a starting point for national reconciliation. Even for him, however, the road to reunion was a bitter pill given the Union’s grievous losses on the battlefields. Events would take a horrible personal turn just two days after Chamberlain’s salute to the Rebel army as the president and his wife watched a performance at Ford’s Theatre in Washington.

For both sides, though, gestures of reconciliation were more important than the hostilities that remained. The latter were natural, the former learned, and Chamberlain’s moment at the conclusion of the Civil War serves to remind us of the vital importance of the additional leader’s checklist principle: placing common mission ahead of personal interest or animosity, especially when its seems least natural to do so.

The leadership principle of mission first is well expressed in our oft-used phrases of "servant" or "selfless" leadership, and it is well captured in a U.S. Marine Corps dictum: "The officer eats last." In business, it appears in Jim Collins’s appraisal as one of the defining qualities of those who lead their companies from "good to great." Decisive leadership depends upon articulating a vision, setting strategy, taking charge, and making timely decisions — and taking all such actions with common purpose set firmly ahead of self-interest.

© 2011 Michael Useem, author of The Leader’s Checklist

About the Author: Michael Useem, author of The Leader’s Checklist, is the Director of the Center for Leadership and Change Management and William and Jacalyn Egan Professor of Management at The Wharton School of the University of Pennsylvania. He is the author of The Leadership Moment, Investor Capitalism, and The Go Point, among other books. The Leadership Moment was included in The 100 Best Business Books of All Time, written by the business book experts at 800-CEO-READ, and listed as one of the 10 best leadership books on the Washington Post‘s "Leadership Playlist." Useem’s articles have appeared in the Chicago Tribune, Fast Company, Financial Times, Fortune, Harvard Business Review, McKinsey Quarterly, New York Times, U.S. News & World Report, Washington Post, Wall Street Journal, and elsewhere.

Useem has presented programs and seminars on leadership development with American Express, China Minsheng Banking Corporation, Citigroup, Coca-Cola, Comcast, Eli Lilly, Estée Lauder, Fidelity Investments, GlaxoSmithKline, Goldman Sachs, Google, Grupo Santander, Hewlett-Packard, Intel, Johnson & Johnson, Microsoft, Morgan Stanley, Motorola, National Football League, New York Fire Department, The New York Times, Nokia, Pew Charitable Trusts, PriceWaterhouse Coopers, Samsung, U.N. Development Programme, U.S. Department of Justice, U.S. Department of Veteran Affairs, U.S. Marine Corps, U.S. Military Academy, World Economic Forum, and other organizations.

For more information please visit http://wdp.wharton.upenn.edu, and follow the author on Facebook and Twitter

A Tale of 2 Guest Posts

number 2 224x300 A Tale of 2 Guest PostsAs any reader of this blog knows, I like to showcase other people here, as the web is about more than just me. I’d like to share a tale of 2 guest posts, and talk about how you can do better guest posts to get more traffic to your site.

Guest post 1

Content rich, original article, focused on things the folks who read this website and who connect with the readers. Author monitored the comments section, engaged with those who commented, tweeted out the link to her network, shared it on Facebook, and did a great job promoting my site and her article.

Results: high engagement, many people reading the article and sharing the article. Others tweeted and Facebooked the article, folks commented, and even today, it’s a popular article several months later. And the links in the article and the author bio got clicked many times, as readers wanted to learn more about the author.

Guest post 2

Advertising like style of article, focused on his business, no connection to my readers. No comments to monitor, also no tweets and no Facebook shares.

Results: low engagement, few people read the article, and one comment very upset that I would post something so blatantly advertising. Zero clicks on any links in the article so far.

4 Lessons for other guest posters

1) Adding value works, blatant advertising messages don’t

2) Original content works best

3) If you want something to get traffic, you have to push it a little bit yourself

4) Monitoring and responding to comments is worthwhile

I’ll work to get more type 1 guest posts and less type 2 guest posts in the future. Thanks to you my great readers for your feedback and encouragement and demand to do a better job for you. This would be a lonely place without you here.

 A Tale of 2 Guest Posts