February 4th, 2010
Posted in entrepreneurship, strategy by glen |
Whole person education I am not really a fan of sports. I was a drama and computer geek all through high school and university, and never really bought into the “whole person” education argument, at least until I could see the link between team dynamics in rowing and in companies.
I grew up in New Orleans, whose Saints are headed to the Super Bowl this Sunday. You can’t really come from New Orleans and not bleed black and gold– even the most die-hard non-sports people in my family and friends are all excited for this Sunday. The Saints have always been a decent all-round team, but have never really been very good at anything– generally better offensively, but aside from the Morten Anderson years, never a particularly strong scorers or on defence.
Until this last year.
The Change I’ve been watching mostly highlight reels (hey, I live in the UK, and with no TV, it’s easier). I noted one thing: Every game talked about a defense who scores, and a team turning over the ball, a lot.
What they’ve done is picked (or identified) a core competetive advantage: The Strip. The Who Dat boys have decided that defence is not about stopping the team moving forward but about getting the ball back, which means knocking it out of the hands of the offensive players and turning it over. This has an enormous effect on the opposing team: They suddenly have to play defensively and in many cases the defense has scored.
The Saints are now the highest scoring team in the NFL.
What’s this have to do with business? I know, sports metaphors are somewhat overwrought, and American Football metaphors are lost on my heavily-influenced UK/EU audience. Sorry about that. American Football works so well because it lends itself to analysis as it’s a play-by-play game.
Entrepreneurs (and up-and-running businesses): What are you good at? Do that. The great thing about entrepreneurs is that they are on top of the world, and feel they can do anything. The worst thing is that, particularly in the early days when revenue is scarce and as deals fly by because they’re “not quite right”, they feel they can do anything.
Here’s the thing: If you’re a decent team, say, a consultancy, the temptation is to diverge from your goals and do too many things. Pick one thing that you do really well, and do that one. Do it well. Pass on work that isn’t quite right, or better yet, tell the potential client how you’d approach it within your own framework. Be unambigious about how the game is played– that you focus on the ball (metrics, change management, ideas-to-market, etc).
We focus at the intersection of ideas, people, and technology, building organisational capacity to bring products to market.
October 10th, 2009
Posted in Africa, Social Entrepreneurship, consulting, entrepreneurship, strategy by glen |
I had the pleasure to speak at the Africa Gathering in London this morning. (twitter feed here).
There were a number of emerging themes through the conference, and not necessarily the ones you might think– access to finance, more capital, education.
Nope. What came up again and again was:
TIA This is Africa. Sometimes problems can seem overwhelming. I have talked about this before, but it bears repeating. My take on it: Break the problems down, solve what you can. Innovate around what you can’t.
Open Source/Open Platforms FrontlineSMS, Android, Ubuntu Linux– these give you the tools and abilities to build cost-effective, replicable platforms that won’t break the bank. For all the thrill of open source technology in Silicon Valley, the true innovation may come in Africa, where stuff like Microsoft’s failing ability to register its software (due, admittedly, to fighting rampant software piracy) may mean that the sotware is unusable.
Open platforms create frameworks and fertile ground for new innovations. Enough said.
Turn up and do something… and listen when you get there. The power of doing something, getting over your own inhibitions, going, turning up, is far more important than your ability to make a big, great plan.
On the other hand, the developing world works differently than it does in the developed world. Teddy Ruge of Project Diaspora.suggests getting a member of the diaspora on your team. In whatever case, however, listening is critical. Go. Take a risk. See what works. Give yourself permission to fail, early and often, and learn from your mistakes.
Africans have the solutions to African problems. You know a lot, but you don’t know the context. Africans can solve African problems– this is the difference between Busines Incubation projects around entrepreneurship and NGO projects– Incubators should offer mentorship rather than direction. The essential difference is that mentorship offers assistance to someone to help them do what they want to do, rather than demanding that they do what you think they should do.
The flip side to the TIA problem is that it’s important to believe that things get better, that the creative, innovative entrepreneur inside can find a solution to the problem. The flip side to mentorship is the encouragement, so that when your entrepreneur finds a wall, he figures out how to go under, around, or through it– or to turn that wall to her own advantage.
October 8th, 2009
Posted in Africa, Social Entrepreneurship, UK, Uganda, entrepreneurship, strategy by glen |
The Hub, York Way King’s X, London
9th-10th Oct, 2009.
I’ll be speaking about, in general, the challenges that investors and entrepreneurs face in Africa, with a specific focus on my partner organisation Appfrica Labs. Come out if you can.
Details at Africa Gathering and on the EventBrite page.
I’m on at 11 AM on Saturday– and to be quite honest, the lineup of speakers puts me in pretty esteemed company.
September 16th, 2009
Posted in Social Entrepreneurship, UK, entrepreneurship, mba, strategy by glen |
My final post from (10000km and a two weeks after) SoCap.
Sorry this is late– I’ve just been indundated by the types of things that inundate your life at the end of five months on the road: I hadn’t slept in the same place (and mostly in the same country) for more than three weeks between April and September. A lot of laundry, email management, and general decompressing time needed to happen.
Metrics MBA-ism is filled with metrics. In fact, there is some research on the impact of metric-heavy MBA thinking on entrepreneurship, and the basic idea is that the two schools of thought are are diametrically opposed.
Dr. Saras Sarasvathy from the Darden School of Business posts her findings at effectuation.org, which broadly suggest that for a certain type of entrepreneur, the whole idea of finding markets, estimating market sizes, and attempting to essentially pre-plan the value of a business is opposite to disruptive models of innovation where marekts are created– i.e., no MBA would have invested in an ice machine because the value of the harvested ice market was too big.
Metrics, Development-style Monitoring and Evaluation (M&E) is a tricky, hard thing. It’s a nightmare for lots of international NGOs as the data collection is done from far away, sometimes by people who don’t understand the value of the information they are gathering (Appfrica may be on to something with their new approach to this…).
Now, add to the difficulty of collecting metrics the ability to compare several projects:
- A clean water project - A new ICT training centre - A new delivery system for vaccines - A new collective agriculture scheme
All of these may cost the same, and have variable outputs– some will have smaller effects on more people, others might be drastically transformational for the lives of a very few. How do you compare them? How you choose between them? How do you decide which was more successful after they’ve run?
Measurement metrics There are a few different approaches to this, many of the latest (ish) are in things like Blended Value and SROI. These attempt to monetise the outputs, so if you increase someone’s productivity (training), then their increased productivity can be measured, turned into dollars, and compared against the increased sales prices that the agriculture scheme generates for its members, and then you report them along with your financial statements. You can add them so that you achieve “profit” in “social returns”. It’s crude but it’s something.
(if you have any better ideas, then by all means suggest away– I don’t think anyone’s particularly tied to these, although they do yield some kind of apples-to-apples comparisons, although the methodologies for each monetisation vary so they end up being apples-to-pears all to often…)
Operational metrics These are, generally, Key Performance Indicators (KPIs). These should be the sorts of things that tell you what’s going on while you’re working– cost per vaccine delivery, cost per avoided pregnancy, cost per trained person. This lets you know if you’re on- or off-target, and then you can start to adjust your thinking and approach based on what’s happening in the field.
My question The question I had with all of this was “What does it all tell you?”
Here’s the thing: Saying you trained 100 people to use the Internet is almost meaningless when you’re 5000 miles away. Saying that you created $50,000 worth of increased productivity is even worse. What you’re trying to get to is a deeper understanding about the effect thatyouvé had on people’s lives.
You want to get to people’s stories. You need the context to know exactly what it means to increase someone’s effective wage $100 a month.
There’s an important thing happening at and around SoCap about creating better, more comparable metrics, but it’s important to not just be stuck in the Excel sheet, but to also communicate what it is that you’re trying to change. There are too many “successful” projects on the ground that achieved exactly what they set out to on the Excel sheet, but didn’t create lasting change.
September 3rd, 2009
Posted in Social Entrepreneurship, entrepreneurship, strategy by glen |
The Bottom Line One funny thing about business is that everything that your uncle told you from your early days is wrong– I was told by most adults as I grew up that the bottom line is what counts. It’s true… to a sense.
Strategy professionals take a different tactic: Profits and the bottom line is oxygen. You can’t live without it. A strategy that chases profits at the expense of all else, however, will likely not produce significant profits in the real world.
Think about it. You don’t walk around saying “Where can I find some oxygen?” You move around pursuing your own needs– taking care of the kids, getting to work, minimising time stuck on the Tube, getting the right diet and exercise, and the oxygen is there.
What happens Companies that pursue profits kind of die. They are too focussed on the short term. They dilute their core service offering and don’t have a core competitive advantage. Imagine if you had a company that cared for lawns. Your strategy is to pursue profits at the expense of all else, but what you know is lawnmower care, maintenance, grass growing rates, fertiliser application, and the transport and logistics required to care for all of this.
Someone comes along and shows you slot machines. These have higher margins. Your strategy is to make the most money possible. You sell your mowers, fire your people, and buy a bunch of slot machines and try to go round and put them wherever appropriate. You don’t know the licensing, bar owners, etc. This isn’t your business. What do you think your profits will do?
Imagine, now, that you have a different strategy: To make the most beautiful lawns in the city. You do your business well. All of your employees take pride in their work. Customers flock to you.
SoCap09 What I’m hearing at SoCap is a lot of thought about impact along with investment– and most of the most interesting people are, broadly, making this point. Figure out what effects you want to see (beautiful lawns) over profit, and find the best entrepreneurs (or social entrepreneurs) that you can to build these businesses, whether they are for-, non-, or aren’t concerned about profits.
September 2nd, 2009
Posted in Uncategorized by glen |
Social Capital Markets 2009 The SoCap conference is on, on my final few days in San Francisco. I’m here with an as-usual probably unusual perspective, as a for-profit worker in innovation but with a passion for development and social media.
There’s been, so far, a few interesting themes coming out, the first of which is Common Good investing.
Selling up without selling out My first conference session was called “Selling up without selling out”, which addressed how companies like Ben & Jerry’s, Tom’s of Maine, or The Body Shop sell up to larger PE funds or trade sales and how to keep your social mission.
In true conference fashion, there was very little discussion of actual strategies. It seemed to boil down to:
- Have a good relationship with the CSR people in the acquiring organisation (or, failing that, another power broker who has a remit or passion to keep your social mission alive)
- Get acquired by the right person (who believes in your mission), i.e., a fund like Calvert or Satori Capital.
- Don’t get acquired - build your business to succeed and generate cash (from Better World Books)
Socially Responsible Investing: 1995-2005(ish) One of the most interesting things, however, was the closing remarks that Terry Mollner from Calvert made. He talked about the first tranche of socially responsible investing (a term he says should be falling by the wayside shortly).
Socially responsible investing is the next evolution from the no-sin funds– i.e., no guns, alcohol, or tobacco, which your financial advisor might have structured for you due to your personal or religious beliefs. It’s a well-structured, easy to understand, and exclusive– broadly, a list of companies or practises that are excluded from investment. The exclusive nature hearkens back to an us-vs.-them mentality– we (the enlightened few) are trying to change the world while them (profiteering corporate managers) are trying to amass all the wealth at the expense of anything.
These days are, from a certain perspective, over.
Common Good Investing The new model is harder to define and understand, and it’s related to the shift to constant learning, that I’ve talked about before. There’s no good-housekeeping seal that shows that you are a good business. This person wants organic. That person wants Fair Trade. That person wants Local. Another wants pro-poor. Another is concerned with the environment. An awful lot of people just want to know that they’re doing the right thing, whatever the right thing is, but they aren’t sure which of the above is better.
In the UK, we’ve seen a shift to ethical branding– at the first Oxford Business and Environment Summit, which I co-founded, Ella Heeks, the marketing manager for Able & Cole talked about how they had carefully crafted their brand to be constantly on the leading edge of what it means to be doing good, so that their customers can trust that, when they shop A&C, they are getting low-carbon, organic, or whatever it is that they want to care about but don’t have the bandwidth to keep up with, because their learning capacity is being stressed by everything else. this is a great example of a brand helping people to learn (and A&C puts leaflets in with their vegetables telling you why this cabbage is good– it’s local, organic, sustainable, fair-waged, or whatever).
All of this makes responsible investing more tricky– it’s easy to say that one wants to invest in social enterprise, but we know that businesses that lead towards a more sustainable society in a broad sense– by doing simple things like pension plans, taking care of their workers, working towards their communities, or anything else, outperform similar businesses who don’t. Employee turnover has a cost. So do lawsuits. Happy workers are more productive.
Finding those businesses don’t lend themselves to a stock screen on your bloomberg machine, unfortunately. There are a few groups like the B Corp who are trying to make a list of things that companies should do, but doesn’t lend itself to what you care about.
The trick, it seems to me, is to investigate companies not just on their practises, but to see if they practice what they preach, and what their strategy is. In your company, make sure that your strategic priorities do include exactly what nonfinancial external effects you actually want to see from your business.
September 2nd, 2009
Posted in Social Entrepreneurship, consulting, entrepreneurship, strategy by glen |
We’ve seen a lot of shifts in the last few dozen years– my parents lamented that I would never live in a world where a job was something you could have for a lifetime, and people of my parents’s age were tarred with the worst of both– they wree promised a lifetime job but, mid-career, the beginning of the shift came in.
Myself and many of my peers, however, don’t really mind. The average Gen-X-er, it is thought, will have 3-5 careers (not jobs) in his or her lifetime (at last! Somewhere where I’m right on target– my third career in my mid-30s). We were called slackers and told we had ADD in high school and in our 20s, but in all actuality (or at least from my perspective), we are the first wave of constant learning and constantly changing what we do.
The old way My grandmother was born in 1907. She was one of eighteen children because it was the tail-end of an agrarian economy where children’s lives were often too short. There weren’t cars. If my grandmother were in the UK, she’d have been using shillings and guineas.
The people of my grandmother’s time have had to deal with decimalisation, the shift to the metric system, world wars, an end to protectionism, the rise of a globalised economy (twice), the great depression, the end of banking hours, the introduction of ATMs, credit cards, chip-and-pin systems, push-button phones, mobile phones, computers, the Internet (my grandmother stopped here– mobile phones were enough) and more.
…And now You may notice on this list that, as these new introductions have come closer to the present day, they have gotten closer and closer. Disruptive innovations are a huge driver in the economy, from google to facebook to email to twitter to openid to SOAP to java, we have to deal with new things all the time– new modes of interaction, new tools that we love to joke how they “simplify” our lives (we have to email, blog, and tweet)
How many things have you had to learn in your job? Word. Excel. Powerpoint. (and the new interfaces) Salesforce. Gmail. SharePoint. Your VPN. Your SecureID fob. IM. Skype. The new phone system. The fiddly expense form. The new reporting system on the Intranet. The TPS report forms.
Not only that, but the rules are changing faster and faster. In accounting, there’s XRBL, new and changing IFRS, and new laws coming in every market due to the financial crisis.
In software development, there are always new frameworks and companies are reinventing themselves so quickly that much software is released as “beta” these days. Gmail has just come out of beta after five years.
Modes of charity, development, and giving are changing constantly– almost too fast for us to keep up.
Your job You have a single job: this job, if you are broadly a professional, is to learn. Constantly. Not necessarily in school, although we do see more people going to school later in life and schools like the Open University reporting increased enrollment.
Economist subscriptions are up, even as newspaper subscriptions are down. Chart-topping books include social psychology by Malcolm Gladwell, economists like Steven D. Levitt, and statistics books like Nassim Nicholas Taleb.
What opportunities does this open up? How does this change the game? Branding? How you prepare for your career? What you want from life?
August 7th, 2009
Posted in UK, consulting, entrepreneurship, strategy, travel by glen |
Expectation I had the fortune to go to Sardegna recently for a friend’s wedding. Everything about this place is pretty awesome. The service is attentive yet chaotic– it’s hard to instil a strong series of values when you have four hours off in the middle of the afternoon in 40 degree (C) heat. When there’s a queue at any café, the whole system bogs down– although it’s rather forgivable as it’s probably bogging down because the owner has decided to hop out from behind his counter to get in the photos being taken “with the pretty ladies”. This is OK, because it’s expected.
On the way, we had a stopover in Milan. And they had an interesting thing there (as we were transferring from international to internal flights we had to pass through the baggage claim area). And this is what I noticed on the way out
_of_IMG00090_tn.jpg) You can see when your flight arrived and when the bags should be out.
This was an incredible revelation to me– sometimes it takes 5 minutes for bags to start rolling out while other times it’s more along the lines of 20 minutes. Someone at the Milan airport noticed this and did something about it. Now you can decide if you want to run to the restroom or queue right at the conveyor belt for your bag. If you want to get a coffee from the vending machine or sit down and wait.
Alitalia bag handling at Heathrow On the other hand, when I returned to Heathrow, Alitalia’s ground crew (they were handling the bags as well as the flight in this case), notified us the bags would be delayed 15 minutes.
After 15 minutes, they said 20-30 minutes.
After 25 minutes, they said another 20-30 minutes. At which point I went to the counter to inquire. I got the most amazing story.
What had happened was this: The computer indicated that there were about 20 bags missing from the flight. As the baggage barcodes are read automatically in a baggage sort centre, someone was poking at the computer (probably without the appropriate permissions or something) trying to figure out which bags were missing and which weren’t. Meanwhile, no one was taking the bags off of the aircraft– the plane and passengers sat for over an hour before they got the crew together to unload the bags.
Of course, if they’d done this in the first place, then they would have avoided annoying the 120 or so passengers whose bags weren’t lost. And focussed on fixing it for the 20 people whose bags were lost.
Because of this inability to handle the situation at the time, the ground crew was off unloading another flight and they coudln’t unload the bags for the longest time. Me? My bag was fine. The delay, however, made me the last train from Victoria and had to decide to take three buses home or a £25 taxi.
Terrible handling of expectations, Alitalia.
Zeitgeist, biker bar, San Francisco This is a bar that probably has the worst customer experience ever– if you use typical views of service. There’s a sign saying that regulars (friends of the bar staff) get preferential service. The hamburger counter is open at odd times, and when they have too many orders they shut down– and they’ll shout at you if you hang out waiting for it to reopen.
Why? They pour great vats of beer and cook a damn good $5 burger. It screws them up to have too many orders pile up, get lost, get greasy. The only can make so many burgers, and their back garden ensures that they’re packed 180 days a year.
They provide pitchers of a wide variety of great beer at decent prices, amazing bloody marys, and good burgers and home fries. They provide a great environment to hang out, drink, and meet people. The experience is what matters. If you’re rude or slow, they’ll shout at you.
Experience and expectations and brands The Zeitgeist experience is what you want, though. They know who they are and provide exactly that.
Alitalia, of course, doesn’t care. Air ticket purchases are based on price. Once you’re receiving your baggage you’re locked in. Still, though, this is the level of screw-up that puts people off of airlines. Almost every frequent traveller I know has one or two airlines they just won’t fly. Alitalia’s on mine until I see how they respond to my note.
*update* To top it off, the customer service emails they gave me three days ago all bounce.
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July 6th, 2009
Posted in Africa, Social Entrepreneurship, consulting, entrepreneurship by glen |
Zimbabwe, six months later…
I took another trip to Zimbabwe last week to meet with a number of people about a voucher programme for African Enterprise Partners’ first investee, Mobile Transactions.
The difference in Zimbabwe from the last time I was here six month ago is palpable. And the country is, quite simply, beautiful. It’s not the water world that Uganda is, but it’s well-appointed with water and could quite easily take its place back as the Breadbasket of Africa.
Why on earth was I tempting cholera and fuel shortages in order to go to Harare now, in the middle of winter (without even a proper jacket– it was about 8 degrees Centigrade)? Mobile Transactions has been developing a electronic voucher product that could be of huge use in agricultural subsidies, which can help support and grow markets rather than undercutting local businesses with subsidised imports. The problem with vouchers is the liquidity issue– shops need to purchase inputs and then collect vouchers to get paid for them– which may take months. With an electronic account, distributors can be credited instantly– and the voucher scheme operators get to monitor the usage of their vouchers in real-time, adapting the program as they see fit and as needs are required, including running different types of vouchers in different areas.
The trip
TIA did rear its head, a bit. Our assistant didn’t get the proper paperwork to export our vehicle in time, so we couldn’t drive across the border (we were a bit concerned as the fuel in the tank was *probably* just enough to get us to Harare and back to the border. Loads of people sell fuel– potentially cut with water, cooking oil, or whatever– near the border but we would only risk it if required.
We decided to go ahead and cross “by foot” as they say, and hire a taxi on the Zim side. The only issue– no taxis. Busses would leave from Lusaka but wouldn’t stop at the border. We were advised that hitching was our only option.
The very nice official, however, who issued us our visas told us to talk to his friend the guard at the exit gate, who hooked us up with a truck (labeled of course “no unauthorised passengers”) who took us to Harare for $10US, getting us there just in time for our meeting.
Dollarisation
Zim’s been switched to US Dollars, although South African Rands, British Pounds, Euros, and Botswanan Pula are widely accepted. Prices are quoted in dollars and change (if any) will be given in Rands or Pula.
Prices have actually stabilised a bit– The latest inflation figures I’ve seen put it at -1%.
Things aren’t all rosy, however. Huge settling has happened in the economy which is good, but the outlook is bleak, if tinged with a bit of hope. Just a bit, though. The general sense is that things are going to get better, but not after they get a bit worse.
Stores are closed. Fuel lines are common (though less so a couple of months ago)– Americans who remember the fuel crisis in the 70s may recognise this:

That’s a filling station on the left, and a huge queue for a minibus in front.
What next?
We exited the country after a single 2 hour meeting, twenty-nine and one half hours after entering. Even for me an dmy ridiculous amount of travel, this is a new record (the previous was about 50 hours in Kenya).
Mobile Transactions thinks that there’s huge potential in Zimbabwe: It’s got smart, driven people, and a desperate need for liquidity. It’ll be a while before Mobile Transactions can perform its core business, but MT are keen on and hopeful that they may be able to run their voucher programme and reduce transaction costs rather significantly.
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May 16th, 2009
Posted in Africa, Social Entrepreneurship, Uganda, consulting, entrepreneurship, strategy by glen |
I wonder what, exactly, is my job title sometimes. My card says “Partner — East Africa” but that doesn’t say much.
I’m working with Mike on his pitch for SBSVC. He don’t exactly need capital, but it’d make AEP move faster, further, and achieve profitability sooner.
The early-stage companies that I’m working with, has got me thinking, as I always do, about the market and landscape here in sub-Saharan Africa, most of the same problems and issues that entrepreneurs face back in Silicon Valley, London, New York, or Asia– they are just magnified here.
Venture capital
There are a lot of misconceptions around venture capital and angel investing. Most entrepreneurs go out looking for the largest possible cash flow at the lowest valuation, without considering what else the VC might bring to the table, i.e.
Experience
Contacts
Networks
Advice
Business
Modeling
These are just a few of the things. Most VCs (the only ones I’d want investing in me) have experience as entrepreneurs and at running businesses. Most of what I see as the big failures in VC from the past– I lived & worked through the heart of the dot.com and the Web 2.0 bubbles– have been, broadly, the fault of having the wrong investors. Kozmo.com being the prime example– some guy with an Excel spreadsheet thought they should take this FMCG service company and sell Palm Pilots at a huge markup.
The VC should be the person who, once they’ve picked you as an investee, will do the right things to make the pie bigger. It doens’t matter so much if you give her huge equity slices; she should work to make the pie big enough so that all parties have more actual cash.
Partner
One of the women I’m pre-screening as a p0tential investee is a fascinating woman. She’s lived and worked all over the world, but is here in Uganda and has invested heavily in a fish farm. Fish farming is controversial worldwide, but here in Uganda the fish that are typically farmed are catfish and tilapia– two of the “OK” fish to farm (low resource usage, high tolerance for variable conditions, etc).
She is excited about the opportunity to work together on an equity basis, in partnership.
Mentor
Mike had originally been using the term “Venture Search” for our model, but it has a fairly specific meaning that is tangential to, rather than describing exactly, his business model.
I like the term “Mentor Capitalist”: Provide many of the benefits of a traditional VC, but in a more hands-on fashion. Provide network breadth while the VCs provide depth.
Building markets
The market for angel investing and venture capital has to spring from the fertile ground of entrepreneurship; entrepreneurs, however often need start-up capital. In some cases– in the cases where AEP is trying to work– tilling that entrepreneurial soil to attract interested investment capital and a new network of angel investors, setting up a virtuous cycle.
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