nGenera: Collaboration for the Enterprise

Seemingly creating a class of software not previously served directly, nGenera is a company that I suggest keeping an eye on. Not talking about their executive team who's chalked full of the dream team of successful entrepreneurs and software vets. I'm talking about the idea of integrating and valuing collaboration in the Enterprise. This seems to be really a cool idea at start-ups, but one which gets hardly a raised eyebrow, and definitely not a standardized application that will serve the needs of multiple business segments, groups, teams, etc. One app? That's a bold business. I'm not even talking about how they encourage exposing this to their customers' customers and partners. That one is where I literally get chills - both from the risk and the excitement of the possibility to build true loyalty and instantly deliver value to our customers woven into a fabric of transparency created from deliberately using a platform designed specifically for collaboration.

Everyone working together. Simple, Enterprise Software. I might vomit, this is so cool.

I bet they get bought in less than 12 months for a significant valuation.

Linchpins: Who are they?

Seth Godin has been one of my favorite authors for some time. His (in my opinion, greatest) book is called Linchpins.

I think he's an artist of the greatest kind, one who creates truly usable and relevant thoughts. Ok, enough about my love of Seth.

I wanted to exercise some of the ways I see and identify the qualities he talks about of indispensable linchpins in his book in my own way. So, the following is the qualities of a "linchpin" and what to do when you think you've got one.

Who are they?

They’re the ones who may not ask for the credit, but deserve it. The guy who tirelessly works on things and seemingly every day comes up with great, new ideas. This person wants to be valued, but knows credibility is earned… AND is willing to work hard to be valued. They don’t always agree, but thoughtfully comment and provoke conversation. Want a debate? Let’s go. Need something yesterday? Fine. This guy isn’t the just the hardest worker, he’s the smartest. He can sell, make, talk, write, and do – all at the same time. They’re a blue-skies thinker, but act in swift manners on small tasks. They always seem to be working on something important. They seem to get the job of 3 people done by themselves. They expect others to play team ball and are quick to share, collaborate and offer up advice when asked. This person doesn’t call himself a leader, others call him one though. This guy is genuinely excited about his work. He isn’t one to self-promote or call out his wins in a victory dance. He sometimes pisses people off by coming across crass or rude, but honesty hurts sometimes and he’s willing to shed the façade of politics in the nature of transparency and productivity. They understand that the process of planning is often more important than the plan. They don’t complain unless they’ve got a better option. They think hard. This guy doesn’t necessarily need anyone to help him be more effective, and seemingly needs fewer resources to achieve an objective.

So, you think you got one? Now what?

First and most importantly, pay this person Top of Market. They deserve it and if you don’t someone else will. Secondly, generally stay out of the way but in the loop. Know what this person is achieving and learn from them. Don’t cater to their every whim, but genuinely care about their opinion and help them to grow. Also, keep plenty on their plate. This person won’t need to be “assigned” many things, because they’ve thought through what needs to be done and is already doing it. Help to facilitate their plan and support them however is best and the least obstructive way possible. Don’t manage this person, coach and teach them. They aren’t going to produce better, faster, or more because of you. They’ll do it because it’s important to them. Don’t make this person into your MJ of Nike automatically, but let them decide the visibility they want and discuss your plan together. Provide an example for them to continue to be better – not everyone who is a linchpin will stay that way, but longevity of linchpins is strengthened if they have a path of encouragement and continuous improvement. This is accomplished through having a great embodiment of something better to strive to emulate. Let him create his own reality. If you do, the outcome is far greater than if you corner him into expectations and confine his reach. Don’t subscribe this person to the rules of the rest. This person deserves exception.

Winners know when they’re on a losing team. The people you surround your linchpin with are going to determine if you hit your goals or if you embarrass your pithy goals and demolish expectations.

Now, Go. Identify your Linchpins. And… make something happen.

Define "Best Practice"

I especially like when we can determine a process which is "best practice"

What does that mean though?

I generally assume people identify this through various degrees of understanding other options, trying lesser performing things and landing upon the "best practice." This is also generally based upon sound, fully vetted research and practically exercised by leading (read: large, profitable enterprise) organizations.

Although, often times it's complete horeshit. It's a way for others to rally around the idea of being "best practice" or "best-in-breed" despite the trueness and/or validity of the claim.

Also, my best practices are not necessarily yours, nor should they be. Context is forgotten and we're blanketed with the assumption of conformity. In Software, it's all about lead gen, sales tools and development methodology. I can sell you on a agile methodology and why it's critical and provides the best output and product in a lean organization. Although, it may not work "best" for you, in your world, with your product, challenges and people.

So, in the end - while the idea of nominating and classifying things, practices and products as "best" is a good idea. Context is crucial. Don't get sold by the color of the paint.

Like the army preaches - be the best YOU can be.

Intel: "Constructive Confrontation"

I was reading about Intel and some of their cultural beliefs recently. In the DNA is ingrained the idea that conflict is encouraged, challenges to ideas promotes ideas to be thought thru. They call it "Contstructive Confrontation."

The concept seems logical. More discussion, no backing down, defend and (dis)qualify. Although, this is seemingly more easily agreed upon verbally than exercised in business these days.

Small Companies, Large Fortune 500, Amongst Partners, Clients, Vendors...

Seemingly all of our interactions have a cloud of deceit and slice of falsehood. People are not encouraged to challenge each other and disagree. Maybe this is more of a protective instinct set on by our reaction to a shaky economy full of unpredictability. Or, people have some more evolving to do.

Scrap all of it I say. If you can't stand up and say "that's crap and here's why" then I don't believe you have the courage and where-with-all to be successful in the first place. Take a position. Have an opinion, defend it.

What happened to being open and honest without fear of retribution or judgment, if indeed, you have the best interest at heart for the organization? I can look into someone's eyes and tell you what they want to say half the time. Saves us both the time. Unfortunately, they don't often step up and express their beliefs, opinions or comments to prove me right or disprove my perception. Fear cripples most of us. Job security is a blanket of protection often blocking authenticity and it is highly flammable.

37 signals talks about how they do this delicately and still make agreement and encourage debate. They ask simple questions like "who wants it more?" which can often prevent one person from taking a strong disagreement into the depths of a divide that widens with discourse.

Go. Make something happen.

Cultral Fit > Technical Fit

Eric Brown puts it simply - The culture of a company determines the ability (or inability) to extract the true value of any software. The technical fit, while important, is only able to be realized if and when it is embraced by it's user community.

I'd add to this by saying that it's incumbent upon the software company to advise the client on the requirements for maximizing and optimizing user uptake and acceptance. Explaining that the software solves challenges and provides a better path to achieving an objective isn't enough. It becomes an accountability and ethical discussion about who is responsible...both being the real answer.

I would err on the side of saying the software company is partly to blame for any failure due to lack of proper roll out. Not because the software company didn't' deliver on it's promise, but simply because they didn't know the business, it's players and how things worked. Ignorance is not bliss.

Obviously the lions share of the blame rests upon the owner of the project and/or who drove/decided upon the purchase. Consideration of the human element is often lost. Technology is only as good as the user lets it be.

Great Stuff.

What did people do before...

Digital Cameras
Cell Phones
Facebook
Text Messaging
Silverware
Television
Email
Internet
Electricity...

I love this question. It inspires you to think about the evolution of something that has become a stable piece of our daily lives. Something so pervasive and value-added, you don't even consider using an alternative or elect not to use it at all. But, people moved from something, made the transition. There was a moment when someone said, yeah I'll give this electricity thing a shot.

I don't have the patience... GET EXCITED or GO HOME

Why this is important: You can't be incredible with 9-5ers. You can float and maybe keep a business running, but growth? forget it. You need all-stars who infect others with a passion for excellence.

It's generally not a "rah-rah" meeting, or series of meaningless "let's go team!" pow-wows that will do this. It isn't forcing meetings or even having "fun" (alcohol) at work and/or after work. It isn't even building team unity through what most people call outings or retreats. These are cool, but not going to get someone excited to the point where they shoot bulls-eyes and work tirelessly.

It is... appealing to their sensibility and demonstrating how effort and participation pays off. Allow everyone to contribute, know who the real stars are and give them more to handle. I don't like the phrase "going above and beyond" cause I think that should be expected. Talk to me about what you've done besides what you're SUPPOSED TO DO, then you've got my attention. Make big promises and keep them.

It is achieved by first having the right people who are intrinsically motivated, driven to obliterate their goals and contribute real value, nix that, create real value. It's selfless teamwork. It's setting examples through proven results. Expect others to be great, ask them to, specifically. Don't accept anything less than amazing. Have an attitude of excellence, it's infectious. It's never giving in, but knowing when to give up, move on. Fail, but admit it, pick yourself up and then set your sights on something else and run fast.

I don't care for the "great job" and "good work" and "way to go" comments making you feel as though you've given positive reinforcement. Some people really need this, so do it for those that need it. Understand what motivates people and how they want to be managed, find a middle ground with them based upon your style.

I can go on and on about organizational motivation, but the message is simple. Attract great, self-driven, selfless talent in the first place and the rest will all come together. Don't kuhm-by-yah and rah-rah me up and down my day or micro-manage and fear monger me towards my goals. Don't sit idly either, making excuses and blaming factors that are clearly not correlations to a lack of performance. Don't ask questions all the time, and not offering answers or paths toward success and wonder why you fall short so consistently, only following with more questions. You are a slug.

If you are not excited about what you are doing... stop. go home. Or, find a way to be an artist, a linchpin... and improve your attitude. If you wake up and don't want to go to work, don't. I don't want you here anyways. Chances are you are a poisonous person who breeds negative energy. Save yourself the gas, you'll need the extra cash soon enough. I don't have patience for mediocrity, just-enough effort and inept people. Show me your willing to strike out, but go for home-runs, you get more at-bats in my roster.

Like the great Ricky Bobby said so eloquently "...here's the deal I'm just the best there is... that simple. I wake up in the morning and piss excellence. I'm just a big, hairy, American winning machine."

Go. Make something Happen.

Joy of a Salesperson

This is too classic not to post, share and circulate. I laughed so hard I nearly collapsed.

http://www.youtube.com/watch?v=cVLAvix-dX0

10 steps to Product-Market Launch

I like steps and process - only as much as they  can help you, which in this case with a goal of determining a viable market and launching a new product, would qualify as such.

New Market Viability  

10 step process to evaluating a new market or industry. 

1.       Identify Pockets of Obsession

a.       What is the most pervasive and obstructive pain or challenge that is facing a market?

b.      Who is pissed off or scared silly?

2.       Measure Relevance

a.       Determine if the obsession is related to your Core Value Proposition

b.      Is this technically even feasible?

c.       If this is possible, how hard would it be (prelim scope)

3.       Determine Macro-Market

a.       Baseline assumptions of what this looks like post launch

b.      What is the Revenue outlook (short and long range, firm and loose models)

4.       Determine Viability

a.       Can we do this with the Resource, Headcount and expertise we have now?

b.      Are there already mature players in this space?  Competitive make-up?

c.       Is this project worth the effort (more narrow LOE)

5.       Sketch it Out

a.       SOW and Market-driven Development. 

b.      Pick three to five customers and allies to co-develop and crerate a cross-functional team

6.       Test First Version, pre-Beta

a.       Perform Market Analysis and more thorough forecast

b.      Re-iterate based upon ongoing closed-loop feedback from all angles

7.       Recruit Early Adopters

a.       Strategy for capturing early market adopters – discounts and locked-in pricing

b.      Expand preliminary trial users to their operations

8.       Build Excitement and Version 2

a.       Build Momentum. 

b.      Start talking about what we’ve got and what the value is to the buyers

c.       Invest in Marketing

9.       Build final Iteration (or next one)

10.   Go To Market & Launch

Now, Go. Make Something Happen.

Tom, the furniture sales guy

I just got a new living room set today.  I'm stoked, but more than anything was pleasantly surprised and excited to work with Tom, my sales guy.  If you're anything like me, you dread going to the furniture mega-warehouses where the sales people are generally overly aggressive and come across creepy and annoying.  Tom, however, was none of those things and I'd like to take a few moments to recap some great things Tom did and didn't do that helped him close the deal. 

Fist of all, he came across casual and had no cheesy intro.  This made me feel at ease.  No following me around pestering me, but he was within an ears shout if we needed him.  And we did, and guess what?  Tom answered every question and didn't try too hard to press the sale.  We were convinced on a sectional, but then we switched our minds when we saw another couch and love seat combo.  So, Tom helped us overcome our anxiety by explaining that if we moved or decided to change the arrangement, this would be more amenable to doing so.  This was a great explanation of an obvious and likely situation we'll find ourselves in some day.  He also related his own personal experiences but not negating our tastes. 

He knew the product, when to press, when to add some sauce to the mix, and when to walk away.  At one point he read a situation and backed away saying "I'll let you tell each other what you really think - I'll be back in 10 minutes."  This was perfect and did allow us to weigh our options in private. He kept the situation light, causual but professional.  He added knowledge and insight when necessary and provided relief from purchase anxiety.  He was also incredibly patient with us as we changed our minds 12 times. 

The best part of all of it, though, was after we made things final - when we realized the store had been closed for over 20 minutes.  Tom never rushed us, didn't even tell us or warn us, and simply stayed by our side providing help as we completed our transaction.  Then, he walked us out and thanked us for the business. 

Tom, who I spoke with more in depth after we had decided upon our couch and accoutrement, has been in sales for over 45 years.  He is a surefire pro.  Tom is going to retire at the end of this year and work part-time a few days a month, because he likes the job.  No doubt he's one of the best. 

Thank you Tom. 

Cheers!

Back in Black.

Having been on the road the last week, I had ample time to "collect" my thoughts.  I do my best thinking when I'm traveling - I think it has something to do with the fact that I am going somewhere physically so my mind feels like it can be free to go more places too. 

I was lucky to have been around some great people who inspire some good thinking as well.  I'm going to try and sum up a few interrelated thoughts.

Firstly, We talk a lot in the software world about making our customers more productive and efficient through technology.  While a technology solution can be a significant contribution to the effort in making things better, faster, stronger - it isn't the only consideration, or even the most important one.  Sometimes its the people that need to be "upgraded."  You can place technology and the latest, greatest software around someone, but if they're not going to embrace it and make a concerted effort to integrate it into their daily lives, then its a lot of wasted code.  The end-users need to buy-in and adopt the technology - this can be done by clearly demonstrating the value of what it will do, outlining concise organizational goals around the project and getting them excited about the new, shiny toys.  Sometimes you need to replace these people. 

Secondly, you must not sell this internally as the next coming of Christ.  I am never a fan of over-selling, principally because it encourages the under-deliver concept, and that's never good.  So, be careful when you think something will help. Talk about how it might not help and what the cost/benefit would be.  ROI projection should be a part of everything.  Consider your baseline data and sources, do your homework and ask incredible questions and make some firm projections so you can financially discuss the impact - that will help and ultimately what matters most.  If I can show you a 3 month pay-back or break-even... everything else is background music.

Thirdly, is the notion of the "fear of failure."  This one goes back to the first point - in which I believe you should employ people who take some risks, and also are willing to assume some ownership of their job.  Each day you should ask yourself, "...if i was the CEO, what would I do?"  This is inherently not how most people operate - we live in a world where the system enables you to hedge yourself against any potential for failure and assume no position so you can be exempt from being associated with anything ugly.  What people don't understand is that great companies let people fail, because when you let someone fail, you're also letting them win and if they win, we all win.  Most people who do a "decent" job are the former.  If you want to be great, I believe you need to risk failure. 

Dr. Joyce Brothers puts it simply:  "Accept that all of us can be hurt, that all of us can and surely will at times fail. Other vulnerabilities, like being embarrassed or risking love, can be terrifying, too. I think we should follow a simple rule: if we can take the worst, take the risk."

Cheers!

Fundamental Sales Formula

Works in 'nearly' every b2b environment, as long as you've already established a few benchmarks...

1. People have a pervasive challenge or sensitive issue for which you can contribute value.
2. You have Capable, Talented People (in-house) that buy-in to the service or product, believe in the leadership and are committed to work hard.

Then, you can apply this formula and expect success.  The formula is:   

Conversion = Activity + Endurance

Conversion, for our purposes, means sales or creation of new opportunities.  This can also be converting trial users, freemium accounts, etc.

Activity is not based upon raw volume and email blasts, but targeted 1-to-1 contact.

Endurance is the ability to call and contact the same person with a level of rigor and determination that earns you the credibility you need to escalate the prospect and present.

Most Sales People are afraid of this model, because it requires you to contact people proactively and not wait for them to call you or sit idly for 'Marketing' to send you leads.  I believe in it, have seen it work well and exercise it daily.  I also believe you need to appeal to prospects through content and other channels where they spend time consuming information - but nothing beats a conversation.  So, pick up the phone!

Cheers.

James Dobbs
jdobbs@qualtrax.com

Pricing Science

Seth Levine provides some very sound thinking around pricing determination and models. Seth is a managing director at the Foundry Group, a Boulder, CO-based VC specializing in Internet Software companies. He's flanked by some pretty incredible partners, a la Brad Feld, so his words have credibility from my perspective. 

http://www.sethlevine.com/wp/2010/08/pricing-models-the-freemium-myth-and-why-you-may-not-be-charging-enough-for-your-product

Nugget: "...most companies vastly overestimate their prospective customers’ ability to understand the features of their product (thinking the value of each feature is self evident). It also complicates the buying process as prospective customers try to figure out how much of each of those great features you’ve developed they want, and doesn’t create clear delineations between pricing tiers."

I'm a fan of KISS in most things, especially pricing. We've recently revamped our product pricing at Qualtrax. I hope this makes more sense for our prospects to understand.

I'm a fan of packages. I like to feel like I have some levels and modules that I can decide upon initially, upgrade to, or add later. It makes sense. I also like to pay for what I use - the notion of pay-by-the-drink instead of open bar. This is easier to facilitate through SaaS model where you can remotely control accessibility and measure usage.

In terms of price sensitivity, especially in early markets, it's a toss-up.  I believe you should give early-mover advantages to first adopters.  This should include a large services package to help them customize the tools and to also ensure they get-out-of-it what they expected or more.  As the market matures and moves toward a more predictable demand, stabilize your discounts and learn to close the loop from market feedback.  If your saving $100K/year for your customers - then price your software based upon perceived value and ride that as central to your value proposition, messaging and positioning.  If you want to quickly grab market share in an untapped less developed industry vertical, then price it aggressively and develop staged add-ons and additional modules to capture more revenue and offer up more software or services that help you realize long-term goals and pay for the initial market discount.

What do you think?

Starting the sale

There's a fundamental issue with sales methodology that is often exercised throughout organizations - especially software. The common misconception is that a customer has a problem for which you can provide a solution. This represents a philosophy where people are constantly facing problems and nothing is working well. What a doom-and-gloom way of looking at the world!

In fact, there are a couple of things we need to address, aside from assuming everyone has problems, pains and obstacles in their organization.

There are in fact 5 distinct ways to sell that are effective, not just problem/solution-focused.

1. Something is broken, Can you fix it. (problem)
2. Nothing is broken, but we know it can be better. (goal)
3. My boss told me we should improve this. (need)
4. I just failed an audit. (disaster)
5. I perceive your software to improve something (perception)

Once we identify their motivation and ways in which we can provide a path towards their objective - we can understand the sales process we need to use.

Solution to a goal doesn't translate well. My goals can include things which your solutions do not speak towards. My goals are improving something which I do not identify as a problem, but an inefficiency.

My needs are something I, personally, do not care about. My needs are someone elses in fact.

My disaster needs an immediate fix. I don't have time for your solution-sales process. Help me now.

My perception prior to understanding your tools is that I had the best way. I perceive my process to work well now, but now I see the virtues of your software and believe it is a valuable improvement.

Happy selling.

James Dobbs

Obession-focused marketing

Great post from "Test-Driven Marketing" written by Nick Van Weerdenburg. Great insight Nick.

"Say you’ve done all the modern marketing activities perfectly- you have a buyer, a problem, a need, and a market. Now I’m going to do the unthinkable and suggest that maybe you should NOT market to this buyer.

Why? Because he’s not obsessed."

http://testdrivenmarketing.com/329/marketing-to-centres-of-obsession-visionaries-and-thought-leaders


Enjoy!

Make meetings work

I'm no saint of the church of effective communication, but I work on improving my communication actively, nearly daily. I welcome feedback and closing the loop towards preventing a breakdown or gap or lack on understanding due to poor communication.

Here's one you may have run into:

Have a meeting. End. Takeaway: ? Meet again: "Um, whats happening now?"

It generally occurs when one or several of these things are happening:

1. The person identified as the "owner" of a particular task is not the right person
2. The owner doesn't understand what is expected of them
3. The assignee or meeting leader does not clearly demonstrate what is expected and when
4. The entire group met after 2pm (always have meetings in the morning)
5. The meeting was the 5th on the same topic and burnout, group think or abandonment of the issue is starting to spread
6. There is no champion for the end result
7. Break things up into mini-milestones, too much given at once creates confusion on where to start and what order

Now, I'm no fan of meetings where people are huddled around a spreadsheet either, but they're necessary sometimes. Working from the same page is going to get you further, faster. Make your meetings actionable and individuals accountable. Send an email out afterward and call each person given a task half-way through the meeting and delivery date of their respectable assignments to measure progress and keep people focused. Getting this started is the hard part, keeping it moving is easy once people understand their roles, expectations and that you will find them and keep them accountable.

Cheers!

James

3 reasons people win/lose software deals

3 reasons people win software deals:

Not going to proliferate a locked vault of secrets - most of you should know this. I found it truly amazing though, that many, who do not work on front lines do not appreciate that the "technical fit" is not the thorniest bush to be concerned about.

1. Technical Fit. Yes, it must work. Great Demo. Slick Interface. It must play well in the sandbox of other software packages and yes the infrastructure (or lack thereof) must be able to support it. Got it, this is a must.

2. Political Fit. Brace yourself, you can sell even without a good technical solution by maximizing the political landscape of your prospective customer. New leadership - convince them this is their chance to make their mark. Failing business with increased pressure to perform - help them see how your solution will be a bright torch leading them to safety and stability. Competitive penetration too thick - help them see how replacing it or playing nicely together is profitable and actually less risky.

3. Economic Fit. The CFO should be approving all enterprise software purchases, so get him to see the ROI, not the cost model. You need to start the process for achieving executive buy-in to the pay-back or expected return very early in the sale. Address it with key influencers and mid-level managers so that you can contribute to a theme throughout the evaluation - this will be discussed in the 90% of the time you are not directly involved, but you are a topic of discussion behind closed doors.

Cheers!
James