June 2007 Archives

James Hong photo James Hong from startup HOTorNot published a terrific read on his blog: "Reinventing HOTorNOT, Part I".

James talks about mistakes they made along the way, challenges they face, recruiting and retaining talent in silicon valley, and more.

Some great insights presented - and I appreciate his transparency.

The central theme of his post, "stop clinging to the past and jump into the future", is spot on for companies that face disruption and need to innovate.

A few of the nuggets from James' post:

  • "The other thing we did is start encouraging innovation again, rather than squelch it in fear of our any changes hurting the cash cow."
  • "...it is better to find people you believe in and take a chance on them than in trying to control and own them. People will work a lot harder if they are working for themselves and feel in control of their own destiny than they will for you."
  • "In the future of the web, the majority of value is in innovation and the quality of execution, not in the funding resources a company can provide... giving employees a healthy share, and a majority share in the case of spinouts they are primarily responsible for is not only not a bad idea, it's the BEST idea."
  • I'm looking forward to reading Part 2.

    (Photo credit: valleywagprime)

    X-teams image The Financial Times has a good review of the new book X-teams - How to Build Teams that Lead, Innovate and Succeed" (By Deborah Ancona and Henrik Bresman - on Amazon).

    The book is about the importance of building teams with an external focus that reach outside the company for new ideas. From the article:

    It is often said that the larger a company becomes, the less adept it will be at creating innovative products and services. Massive scale and corporate inertia tend to engender internal fiefdoms and bureaucracy and stifle communication and creativity.

    The antidote, claim Deborah Ancona and Henrik Bresman... is to train and empower special innovation-focused and multi-disciplinary X-teams. ...Such teams combine diverse expertise, communication skills, good contacts and the ability to reach outside the company for fresh ideas.

    "Radical innovation is increasingly done in small and mid-sized entrepreneurial firms," the authors write. "Add to that the increasing number of universities forming industry alliances and making money from their research," they say, and we now live in what Ancona and Bresman term an "era of open innovation". An era where scouting for ideas and developing close contacts outside the organisation are vital to success.

    Procter & Gamble, is mentioned as an example. When P&G found its financials sliding and new product pipeline slowing in 1999, the company abandoned its traditional approach of in-house research and development and turned to the outside world for help. The traditional "research and develop" approach was replaced by a "connect and develop" strategy of working with external partners. The result: 35 per cent of P&G's new products now come from outside the company and the company has driven impressive financial results.

    Google Photo I recently attended a presentation titled "Innovation at Google", by David Bercovich, product marketing manager at Google.

    Among the highlights of his presentation, Bercovich shared key lessons learned about product management.

    People have a close connection to Google, Bercovich said, because it has opened up information to people and changed the perception people have of sharing information. Before, people who had information had power. Now, in the interconnected world, sharing information has power.

    From a marketing perspective, it's interesting to remember that Google didn't do a lot of advertising to attract new users. For most people who use Google's services, a friend said to them: "You've got to try this because it is great." Bercovich notes that as we're more networked, that kind of viral marketing happens more. That's one reason why I believe it is so critical to focus on Net Promoter Score in running a business.

    When you think about it, the consumer technology world is innovating because you're one click away from a consumer going somewhere else. For Google, "It's all about innovation, because there are no switching costs in search," Bercovich said.

    Here is a summary of Google's product management tenets, as presented by Bercovich:

    1) Fast is Better Than Slow.

    While there's an old saying "patience is a virtue", users are impatient. Google has found that if they slow search by 1/10 of a second, there are significant decreases in search usage. What does that say about user experience in other parts of the web? People don't have a lot of patience.

    There are implications to how to deploy web services. The world sped up, but for many companies how they deploy didn't change.

    In the old model: define all the requirements; evaluate build vs. buy; issue an RFI or RFP; select a vendor; conduct a bake off; define an implementation plan; customize the application; build an end user training plan; deploy the application. That takes a long time.

    In the new model: get the product out quickly, let early adopters provide feedback and have that shape the product. New product development must be iterative, not a big bang. Launch and improve. Fail quickly and learn.

    In the past, safe was better. Now, the speed at which industries are changing makes an important case for speed and taking more risk.

    2) Simple is Better than Complex.

    Google search today has essentially the same simple experience it did in 1997. Today, all the innovation happens behind the scenes, so the products are easy to use. No user manual is needed.

    3) Assume Chaos and Deal with It.

    As a basic approach, Bercovich advises: encourage risk taking, don't punish failure. "If you're not making mistakes every month or quarter, you're not taking enough risks," Bercovich said.

    In terms of dealing with chaos, Bercovich says that manual categorization and hierarchies are dead. As an example, he has 108,000 emails in his inbox. The old way of putting mail into folders isn't scalable.

    "Search is the only scalable option," Bercovich said.

    And this example applies to information across a company: rather than structurally manage each piece of content, allow people to search the information they have access privileges to.

    Of course, search isn't always the right tool: for example browse and discovery are important for media.

    Bercovich notes that there is a difference between not being structured with information categories vs. not being structured in your approach to problem solving.

    How does Google approach problem solving? "Google's core philosophy in hiring is hire athletes, not shortstop," Bercovich said. "If you hire a person to solve a particular problem, over time that problem changes."

    Organizationally, he advises forming small teams, and moving people around a lot.

    "Put a small team on something. Put it on the web. Test it," Bercovich said.

    (Photo credit: smanjo)

    Inc. Magazine has a great feature article on Ultimate Ears:

    "How Jerry and Mindy Harvey saved Alex Van Halen's hearing (what's left of it), learned some important lessons about business, and built Ultimate Ears, a $22 million company that is deeply embedded in the culture of the music they love."

    Having had a chance to meet Jerry and some of the folks at UE a couple of years ago, I enjoyed reading this story behind the story.

    Related Links... my other posts about Ultimate Ears:

  • Review: Ultimate Ears UE-10 (UE10) Custom In Ear Monitors
  • Ultimate Ears triple.fi 10 earphones reviews

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