The importance of trust between startup founders and investors

Most startup founders have an uncanny ability to suspend disbelief when it comes to the future of their venture. They’re always in sales mode – to themselves, early customers and investors, and the world in general. Startups that are on the brink of huge success are often also on the brink of spectacular failure, the line between the two extremes is often wafer thin.

Early stage startups, by definition, are almost always missing something as they iterate on product-market fit. Meanwhile, early stage angel investors can often see past these shortcomings due to their experience and learnings from their own mistakes, and provide the care and nurturing to founders needed to unlock success.

Investors focusing on early-stage startups understand this reality and accept the associated risks in anticipation of making bets on founders working on ‘10X’ ideas to realise outsized rewards. This relationship between founders and investors is a key ingredient to startup success, and isn’t just from a commercial perspective, but at a personal level – rapport, respect, mentoring and trust are vital.

Early stage investors invest because they believe in the founder at a personal level. There is something about you, and your idea that convinced them that you could make it happen. Usually, it is just a feeling and not some tangible thing they can put their finger on. Ironically, most angel investors will imagine a future version of a startup far more enticing than most sane founders are willing to pitch.

The startup game isn’t for everyone – it isn’t really for most people. At the end of the day the most likely outcome is failure, even angel investors expect most of their bets in startups to fail. In this cauldron of uncertainty and high-stakes, the most important element of the founder-investor relationship is trust.

Startup founders have the singular authority to address high-stakes challenges and make tough decisions. However, to a large extent their autonomy rests on the willingness of the investors to cede it to them. In other words, it depends a lot on investor’s trust. Leaders who violate that trust soon find themselves ousted – Travis Kalanick, whose brash and at times inappropriate behaviour repeatedly raised eyebrows at Uber, was blamed for creating a toxic culture and forced to resign by an investor revolt.

Founder trust has also been eroded by Mark Zuckerberg at Facebook. In April 2018, Zuckerberg was before Congress and questioned about Facebook’s commitment to data privacy after it came to light that the company had exposed the personal data of 87 million users to Cambridge Analytica. Then in September 2018, Facebook admitted that hackers had gained access to personal information of 50 million users. Then a New York Times investigation revealed Facebook had given Netflix, Spotify, Microsoft, Yahoo, and Amazon access to its users’ personal data, including in some cases their private messages.

So when Zuckerberg announced that Facebook would launch a dating app, I shook my head. And then they announced releasing an app that allowed people to share photos and make video calls. Why would anyone trust Facebook with personal data on something as sensitive as dating, or with a camera and microphone given its horrible track record?

Our need to trust and be trusted has a very real economic impact. More than that, it deeply affects the fabric of society. If we can’t trust other people, we’ll avoid interacting with them, which will make it hard to build anything, solve problems, or innovate.

Startup founders can’t build trust unless they understand the three fundamental promises they make to investors and the resulting responsibilities: economic – to provide value to customers that enhance their lives; legal – that they will follow the letter and the spirit of the law; ethics – investors want founders to behave with integrity.

To investors, if founders repay the trust of investment made by delivering the above promises, it means returns; and to society, it means growth and prosperity. But trust is fragile, it waxes and wanes. It means being competent, playing fair, and most of all, acknowledging and, if necessary, remediating, all the impact your decisions have, whether intended or not. Of course, it’s not always possible as a founder to make decisions that completely delight investors, but it is possible to make decisions that keep faith with and retain the trust they have in you, by being authentic and acting with integrity at all times.

Being authentic means that the gap between who you are and who you portray to be as close as zero as possible. In other words, being authentic means bringing the ‘real you’ wherever you go, in every situation and conversation. You can look at it from a moral angle, but I’m particularly interested in making a business case for being authentic.

Let’s start with what happens when you are not authentic. You will start with creating an image of yourself that is different from who you really are. It takes an effort to do that. Now, you will have to act out that image and make everyone believe that what you act out is who you really are. It takes even more effort to fulfil that. Once you act this out, you need to remember this image because you need to behave consistently with your image with all the people that have seen you portraying that image. That seems like a burden that you have chosen to carry to me. That you are interacting daily on a superficial level is odd, as betraying trust means betraying yourself.

Thinking about authenticity made me aware of my own conversations I’d been involved in as an angel investor, and recall the awkward situations where I considered my trust had been abused. Trust in humanity will only continue if we cultivate authenticity and sincerity in face to face conversation, and once these behaviours have lapsed, trust is broken and I’m done with that relationship.

Authentic’ is derived from the Greek authentikós, which means ‘original’, but just being original doesn’t mean you will be perceived as authentic. You could be an original phoney. At its heart, authenticity is about practicing your underlying principles and values – being totally clear about who you are, your purpose and what you stand for. When your rhetoric gets out of sync with your values, you lose your integrity and future persuasiveness suffers.

So I’ve used trust as a key part in assessing my appetite to work with startup founders, and my experience is that it is a hallmark of high-performing startups – employees are more productive, more satisfied with their jobs, put in greater discretionary effort, are less likely to leave, and are healthier than those working in low-trust ventures. Startups that build trust among their customers are rewarded with greater loyalty and higher sales, and negotiators who build trust with each other are more likely to find value-creating deals.

I’ve developed an approach to assess the trustworthiness of founders on five dimensions: competence, motives, means, impact and sincerity. I’ve found that founders who demonstrate these five dimensions can deepen the trust others place in them and foster stronger relationships. Conversely, founders who don’t pay attention to them can easily behave in ways that undermine trust, often without even realising it.

For me, motives and sincerity are the essential qualities I look for, they make up the moral or ethical domain of trust, the areas where I judge founders on the choices they make, whether it’s whose interests they serve (motives), how they go about achieving their goals (means), or whether they own all the effects they have on others (impact).

By understanding the behaviours that underlie trust, startup founders are better able to elevate the level of trust that investors feel toward them, and for me this can be captured into the following three elements:

Positive relationship trust is in part based on the extent to which a founder is able to create a positive relationship with investors. To instil trust a founder must:

  • Be empathetic to the concerns of investors
  • Be open minded and listen to advice
  • Respond to feedback in a constructive way

Good judgement the extent to which a founder is able to show balanced judgement, shrewdness and perceptiveness gives an investor confidence. This means:

  • They show balanced judgement when making decisions
  • Creating conviction when expressing their ideas and opinions
  • Can anticipate and respond quickly to problems, offering solutions

Consistency The final element of trust is the extent to which founders walk their talk and do what they say they will do. Investors rate and respect a startup leader highly if they:

  • Are a role model and set a good example at all times
  • Follow through on their commitments and keep promises.
  • Act in the best interests of everyone, not just themselves

Watching the current political discourse (and deadlock and chaos), I experience a longing for an authentic discussion of the core values that ought to be guiding us as a society. I feel that we are morally adrift, that we do not have a clear sense of how to ground our identities and actions to ultimate values that transcend time and place.

That is not to say that our society is largely immoral. Just amoral, lacking a clear compass or foundational guide at a critical time. Instead of a moral compass, people are constructing their own moral decisions. They don’t seem to know where they belong. They don’t seem to know that they are doing the right things with their lives. They don’t seem to know what the right things are.

And that’s a parallel to startup culture, where founders pursue their own unilateral agenda, failing to ground their perspective in a moral perspective and the legal and ethical commitment they made to angel investors who gave them their first chance. I’m seeing founders following a loose, poorly defined moral individualism that, for many, bleeds into an extreme moral relativism.

The emerging reflections on right and wrong generally reflect weak thinking and provide a fragile basis upon which to build robust businesses. Moreover, founders behaving like this do not rely on any moral traditions or philosophical ethics to make decisions. Instead, the basic position is for each individual to make up their own rules and do what is good for them.

Ultimately, it comes down to personal integrity, the state of being honest, and respecting trust given. The golden rule: don’t do anything that you wouldn’t want someone to do to you. Doesn’t mean it’s wrong or right, that is determined by each person, their experience, their perspective. And of course, we have laws. They pretty much cover it.

I believe that in healthy humans there is an inner compass that guides right from wrong. It may get modified through various lenses of philosophy, religion, and culture, but I think integrity and not causing harm by breaking trust are pretty universal. Unfortunately, it is also possible to get estranged from that compass, the influence of others, circumstances and opportunity may divert us from the path we know to be right.

For founders, it can be hard not to diverge from the path guided and shaped by trustworthiness with their early stage investors if they can see a quick personal gain. However, look in the mirror, and can you reconcile breaking the trust given to you? For certain, it is good to stay in balance and in touch with being a founder your investors trust, as much as you can.

For me, I am never one to patiently pick up broken fragments and glue them together again, and tell myself that the mended whole is as good as new. What is broken is broken, and I’d rather remember it as it was at its best than mend it, and see the broken pieces to remind me that you broke my trust.

Leading a startup in times of political & economic uncertainty

The current global economic indicators make uncomfortable reading, even before the impact of Brexit is factored in. The UK’s Q2 GDP figures recorded the first quarterly fall since 2012, indicating the economy going into reverse. As investment and exports continued to fall, the conclusion is an economy stalling at best.

Consumer spending and government expenditure are currently keeping the economy afloat, a pattern we have seen for a while. Boris Johnson seems intent on easing the public purse strings, announcing a new commitment to spending money every day on health, education, social care and crime. However, this contradicts his tax cutting promises – you simply can’t have a high spend, low tax financial strategy. His numbers don’t add up.

So we are likely to see a growing imbalance in the UK economy, as rising consumer spending and government expenditure offset declines in investment and exports, and the risk of ‘no-deal’ and the uncertainty surrounding Brexit stalls investment. The Bank of England’s low interest rate policy is exacerbating these imbalances too, by supporting borrowing and encouraging savers to look for more risky investments because the returns on bank and building society deposits are so poor.

A Brexit-driven recession in the UK may be avoided, but there is still little clarity on whether the UK will be in or out of the EU come November, making Brexit the big story for the economy with this uncertainty. Johnson has begun to brace us for a no-deal Brexit, ramping up public spending by £2.1bn on preparations including stockpiling of medicines, and a public awareness campaign about potential disruptions.

Businesses remain largely unprepared for a disastrous cliff-edge no-deal and are in sit-and-wait mode, while the CBI continue to speak out against the ongoing economic chaos. At the same time, inflation unexpectedly rose above the Bank of England’s 2% target in July, putting renewed pressure on British households as the cost of living increased.

Also in July, the unemployment rate ticked up to 3.9% while the number of unemployed rose by 37,000. The number of vacancies – which had been on the rise since 2012 – started falling at the start of the year and continues to fall. This suggests that the UK labour market has started to turn down and that weaker economic growth and the rising risk of a no-deal Brexit could be starting to impact the job market, although the jobless rate remains at the lowest level since the mid-1970s.

The average British worker still earns less than they did in 2007. In place of rising wages, consumption is being driven by growing unsecured household debt, which is now the highest we’ve ever seen in the UK. With incomes low, savings drained and debt levels high, a turn in the business cycle will mean financial hardship for families.

Outside of UK specific issues, the global economy is slowing at the end of a ten-year-long weak recovery from the 2008 financial crash. Germany has fallen into negative growth and is heading towards recession. In the US, Trump’s confrontational strategy to a trade war with China is having a negative impact on both countries. Washington and Beijing have ratcheted up the threats of tariffs on each other, dragging down global trade volumes and economic growth.

It all adds up to fearing the worst that the first global recession since the crash of 2008 is just around the corner. Recessions usually happen every ten to fifteen years: business confidence drops, investment declines, employment stalls and demand shrinks. Eleven years on from the crisis of 2008, expectations are that the next recession is unlikely to be a repeat of the last crash, as while there are risks to financial stability, none will impact the economy in the way the collapse of Lehman Brothers did.

So, let’s draw breath on the economic analysis. As a startup entrepreneur looking for meaning in this analysis, the information has contradictions, a mix of emotion, biases and cold-eyed calculation, yet expresses something about both the mood of investors and the temper of the times. Yes a recession is so far a fear, not a reality, but it is evident firms are struggling to get to grips with uncertainty, and anxiety could turn to alarm.

Often danger signals are ignored until too late. America’s decade-long expansion is the oldest on record so whatever economists say, a downturn feels overdue. For me, the portents are evident, confidence is being eroded and the storm clouds are gathering. My fear is that we’ll have a torpid economy at best, that is prone to curtailing innovation, entrepreneurship and startup investment.

There’s just no way to completely prepare for future uncertainty facing your business, simply understand that circumstances change and unforeseeable events occur, and you can make smart choices to prepare well. Not only will this provide you some peace of mind that you’re as ready as you can be, but you’re more likely to respond quickly and more effectively when trouble strikes, so here are some practical tips designed to help your startup prepare for the unknowns.

1. Stay in the now It’s easy to get caught up in your own startup bubble, but that’s a trap to avoid. One of the best ways to combat uncertainty is to stay abreast of economic indicators, as highlighted above. By being aware of the general state of the economy, and how economic forecasts might affect your business, you can put yourself a step ahead of others.

A forward-thinking entrepreneur understands the value of analysis, and not just ‘gut instinct’ intuition. Are you consistently reviewing your business strategy assumptions, value proposition and pricing to ensure they remain valid?

2. Prepare for multiple outcomes It’s wise to stop assuming a single outcome will turn up as the conclusion of a situation. You should prepare for multiple outcomes regardless of what you expect. Foresight enables you to respond effectively. The best way to prepare is to include your team in the planning process, you’ll get fresh, unique perspectives that are more likely to result in critical and innovative thinking.

There isn’t a crystal ball to help you predict the future, and there are many factors completely out of your control. Instead of trying to guess what’s going to happen next, place as many small bets as you can on multiple outcomes that are within your control. For example, focus on product improvements, customer communications, experiment with pricing and new marketing strategies.

3. Build relationships to create opportunities to grow In times of uncertainty, is a spreadsheet going to help you regain solid footing? It’s possible, but unlikely. The best investment you can make for future stability is relationship building to help weather the rough patches.

What are the signals telling you it’s time to be different and bold? Signals to watch for regarding customers are: Are your regular customers asking you for new things? How are new product/new customer sales against forecasts? When your regulars ask for new offerings they’ve shown you the direction where you’re likely to succeed.

4. Know your numbers When you’re dealing with uncertainty, it’s essential that you have a firm grasp of key financial numbers, cashflow and KPIs so you can make the appropriate changes quickly. Also, sit down with your sales team daily. This will help you pinpoint the messages to be taken between ‘lead’ and ‘lag’ indicators.

5. Regain control of your time Evaluating how you and your team spend your time helps you stay focused on the tasks that grow your business. For example, spending time writing content means you must understand what the timing and targets are for following up leads.

What’s more, tracking your time keeps you in control. It’s like weeding your garden; if you don’t stay on top of the weeds, they’ll eventually consume your entire garden. Also you should automate and delegate as much as possible so you can focus on those aspects of the business where you can personally make a difference.

6. Ensure that your passion adds up Passionate entrepreneurs can have rose-coloured spectacles, over-estimating sales and underestimating costs, being positive on the upsides and conveniently ignoring the downsides. In times of uncertainty, to convert your passion into tangible business, emphasise a strategy that makes financial sense based on how the elements of your business will come together. It’s all about the clarity of your thinking and your assumptions. The numbers fall out from this.

7. Attach to the market, not your idea Passion is an essential ingredient, but a successful start-up is rooted outside the founder, in the market with customers. To turn your passion into revenue, always think about your business from the customer’s perspective. Why would they buy from you? What problem are you solving? What is compelling about your value proposition?

8. Develop a sense of timing Waiting for the right moment to take a decision often makes the difference between success and failure. Adopt a ‘So What?’ and ‘What if?’ mind-set, and map out alternative options. It’s a marathon not a sprint, reflection and consistency are as important as innovation in resetting a ‘business as usual’ model in turbulent times. Be alert, timing is everything. You need to say ‘no’ sometimes, and make some bets.

9. Don’t micromanage Getting deep in the weeds gives you little time to get that 10,000ft perspective, you should work ‘on’ the business not ‘in’ the business, you’ll find your greatest contributions come when you pull yourself back. Focus on your vision and North Star – each week ask yourself What have I done to move the business forward?

10. Don’t be too opportunistic, don’t be too defensive Strike a balance. Adopting a pragmatic, balanced approach is likely to maximise the chances of you surviving a period of uncertainty. Recognising that cost-cutting is necessary to survival while also understanding the role investment and innovation plays in long-term growth, is key to steering your business through choppy waters.

A balanced strategy accepts the reality of the present and reacts accordingly, while also preparing for the future. You can not only survive uncertain times, but also learn valuable lessons that will stand you in good stead for longer term success. Judicious investment, proactive innovation, increased operational efficiency, refocused propositions, honed processes and competitive advancement are all possible when it’s tough going, there are silver linings.

So, are you preparing for the potential recession into which your startup maybe heading in the next six months? Don’t ignore how much is beyond your control nor take your focus off of what is within your control. Develop the resilience, flexibility and competitive edge to ride through the rough waters and come out in good-nick, ready and aligned for when sailing becomes smooth.

Strategic readiness comes through a combination of awareness, flexibility, strong navigational leadership, resilience, collaborative working, considered learning, ongoing innovation and agility. Now is the time to act. Make the necessary adjustments to your business now to help prevent it becoming another statistic of an uncertain environment.

Taking risks is what a startup is all about, but you can research and keep your ear to the ground too – the process of planning is important – but in the end you have to work from your instinct and be fearless. When you’re feeling the apprehension about the horizon, that will help you manage the ambiguity of an unknown future and forge ahead in confidence.

For entrepreneurs, the dream of a future lies in the present moment. Great innovation comes from asking what could be. Don’t be afraid to take a risk to see your dream into reality, even if the waters are choppy. Security is mostly superstition. Avoiding danger is no safer in the long run than outright exposure. Life is either a daring adventure or nothing.

The rock ‘n roll entrepreneurial spirit of Dave Grohl

I have a wish-I-did-what-you-do-for-a-living man crush on Dave Grohl, founder and lead singer of the Foo Fighters. I have cycled through many musical heroes, from Ian Curtis, Johnny Rotten, Joe Strummer to Tim Booth. Whenever I hear Grohl perform or talk, I marvel at his intelligence and zest for his craft. Of course, everyone’s on a mission to be themselves at the deepest level, but I sometimes wish my job was doing what this guy does.

Music gives Grohl his spiritual conviction to ferociously animate himself. He founded The Foo Fighters as a one-man project following the dissolution of Nirvana after the suicide of Kurt Cobain. The band took its name from the UFOs and various aerial phenomena reported by aircraft pilots in WWII – which were known as ‘foo fighters’.

I know an embarrassing amount about Grohl. I could talk your ears off. For example, did you know Dave was the fifth drummer in Nirvana? I always think of that when I’m playing air drums in the car to Everlong – I’ll get my breakthrough I tell myself, I can be patient.

Following the release of Foo Fighters’ 1995 debut album, featuring Grohl as the only musician – so he consequently played every instrument – Grohl recruited bassist Nate Mendel and drummer William Goldsmith, as well as Nirvana touring guitarist Pat Smear to complete the line-up.

The band made its live public debut on February 23, 1995, at the Jambalaya Club in Arcata, California. Goldsmith quit during the recording of the group’s second album, The Colour and the Shape (1997), when most of the drum parts were re-recorded by Grohl himself. Smear’s departure followed soon afterward, though he appeared with the band on live shows, and rejoined as a full-time member in 2011.

The Colour and the Shape is an amazing record, including top tunes such as Monkey Wrench, Everlong, My Hero, and Walking After You. Before its release, Taylor Hawkins joined as drummer, followed by Chris Shiflett as lead guitarist. Fast forward to September 2017, and session and touring keyboardist Rami Jaffee joined as a full member, to complete the lineup.

At their loudest and most animated, Foo Fighters are noisemakers and musicians. Their grinding sheds a spark, which leads to an explosion, which leads to a crescendo. Grohl’s music combines the beauty of minimalism, the importance of music that’s stripped down, and a wall of noise. Foo Fighters tunes are marked by the technique of shifting between quiet verses and loud, sing-along choruses, huge guitars, powerful hooks.

They have the lure of punk with the energy and immediacy, the need to thrash stuff around, but at the same time, we’re all suckers for a beautiful melody. Often it’s a punishing industrial noise, a clattering din, but Grohl is an idiosyncratic figure in a world that tends towards the cookie-cutter.

Grohl is a whirling dervish on stage, and they frequently play concerts for over three hours. He’s a story of sheer passion. For example, on June 12, 2015, Grohl fell from the concert stage in Gothenburg, during the second song of the Foo Fighters’ set, and broke his leg. The band played without Grohl while he received medical attention; Grohl then returned to the stage, sitting in a chair to perform the last two hours of the band’s set while a medic tended to his leg.

The band are deep into their musicianship, and at gigs, each member tips their hat to their heroes – from Queen to The Stones to John Lennon – but the best I’ve seen was Pat Smear leading the band into a quick dash through the Ramones’ Blitzkrieg Bop. When they play, it’s blood and guts. I love their dissonance and the chaos.

Startup founders – as any band founders like Grohl – who want to follow any kind of memorable, meaningful path for their venture or for culture writ large, can’t settle for cheap radio-play solutions, or settle for a ‘one-hit wonder’ mentality.

To create real cultural touchstones, we have to understand that there is no such thing as an overnight success. There is no cheat. No corners to cut. No app store elevation to a speedy triumph. Because let’s face it, the majority of chart-toppers fail to occupy a place in the collective memory as we someday record it. However, Nirvana were inducted into the Rock and Roll Hall of Fame, on April 10, 2014, twenty years after the death of Cobain, so Grohl already has a legacy.

In business terms, you don’t need another ‘hit’, you need to define your vision and ‘what does success look like?’ aligned around specific outcomes. To build companies that create real customer loyalty, credibility, or a following like a band – measured either by word of mouth or clear metrics – you have to build experiences.

Not just products. Not pixel-perfect screens, it’s the human experience that matters most. How people think and feel when they use the thing you’ve built, hyper-memorable encounters, real human experience. It’s like those memorable concerts you’ll never forget. It’s only these kinds of experiences that any of us are likely to enjoy with relish or gusto in a year or two to ensure repeat purchases.

At this stage in the feverish, casino-like startup game, it’s a lottery at best. It’s not about memes, it’s about moments. Not ‘friends’, or ‘followers’ or ‘connections’, but faces. Physical, real-world experiences that complement our lives online, extending it emotionally and naturally, in way that we now need and crave more than ever before. Remember, in this rock-star era of startups, the ‘concert’ is monumentally more rewarding than the record. For customers. For audiences. For people.

After the death of Cobain, Grohl did not wallow in grief. He refocused and put himself back into the music. I was supposed to just join another band and be a drummer the rest of my life. I thought that I would rather do what no one expected me to do. I enjoy writing music and I enjoy trying to sing, and there’s nothing anyone can really do to discourage me.

Which means maybe it’s time to find that loud, noisy and energised version of the Dave Grohl in you, in the here and now. And if you can’t, start banging out some version of it in your garage as a start. So, let me count you in to some startup lessons from Dave Grohl. Ready? 1-2-3-4…

Be punk, not perfect Dave started out as the drummer in the punk band Scream. He began drumming on the pillows on his bed as a kid, and then took the rhythm that flowed through him on the road by the time he was seventeen. He never took drum lessons or guitar lessons. Actually he took one drum lesson and the teacher tried to get him to change the way he held the sticks. That was the end of drum lessons.

He’s a self-taught guitarist, too. Grohl recorded the first Foo Fighters album by himself, playing every instrument, in five days. The music he writes and performs is far from perfect, but it’s perfectly him. Passion and emotion are great, ugly, beautiful channels to push your creativity out into the world. No lessons required.

Be a doer Grohl knew what he wanted to do from a young age. However, his family couldn’t afford a drum kit so he would arrange his pillows on his bed and hit them hard enough to make the sounds he wanted. There will always be barriers, but it’s how we overcome them that matter.

Sometimes we feel like going it alone is the hardest thing, but it often results in the most rewarding work. Grohl’s got deep roots in the punk scene, which has a strong tether to the do-it-yourself mentality. Grohl talks about his realisation that he could make it happen with his own hands:

At 13 years old, I realised that I could write my own song, I could record my own record, I could start my own label, I could release my own record, I could book my own shows, I could write and publish my own fanzine, I could silkscreen my own T-shirts. I could do all of this myself. There was no right or wrong, because it was all mine.

Grohl isn’t afraid to roll up his sleeves, show off his feather-tattooed arms, and get to work. So what about you?

Find your passion The idea is just to make music and make good records. There’s not so much career ambition as there is personal ambition… …When you go in to make an album, you want it to be better than the last, you want it to be the best thing you’ve ever done, and you want to stretch yourself musically.

Molly’s Lips was his first Nirvana recording, a session for John Peel’s BBC Radio show. He’d made a start. Grohl is confident in his own shoes. He knows who he is: It’s YOUR voice. Cherish it. Respect it. Nurture it. Challenge it. Stretch it and scream until it’s gone. Because everyone is blessed with at least that, and who knows how long it will last.

Keep your family close To be an effective leader, it can’t be all about the work. A balanced life is a full life, and Grohl obviously enjoys having those closest to him, close to him.

Family commitments are important, keep a balance. It’s often the reason many can’t chase their dreams. Grohl’s a devoted and dedicated father, so he built a studio at home so that he could walk his three daughters to school whilst he wasn’t on tour before getting to work. Now, you often see one of his daughters get up on stage with him at most gigs.

Get stuff done From his early work from Scream, as the drummer for Nirvana and the last twenty-five years as the enigmatic frontman of the Foo Fighters, the output of music and songs that have Grohl’s fingerprints on is stunning.

By his own admission, he can literally not sit still. Whilst band mates enjoy a much needed rest, he often fills that time with side projects and collaborations. Volume can speak volumes, and whilst it’s important to maintain quality, sometimes we need to just get stuff done. So avoid procrastination. Either crack on and finish it, or scrap it and move on.

Care … genuinely In May 2006, Grohl sent a note of support to the two trapped miners in the Beaconsfield mine collapse, in Australia. In the initial days following the collapse one of the men requested an iPod with the Foo Fighters album In Your Honour to be sent down to them through a small hole.

Grohl’s note read, in part, Though I’m halfway around the world right now, my heart is with you both, and I want you to know that when you come home, there’s two tickets to any Foos show, anywhere, and two cold beers waiting for you. Deal?

One of the miners took up his offer, joining Grohl for a drink after a Foo Fighters acoustic concert in Sydney. Grohl wrote a tribute instrumental piece for the next album. The song, Ballad of the Beaconsfield Miners, appears on Foo Fighters’ 2007 release Echoes, Silence, Patience & Grace.

Music is one of the things in our humanity that really matters, and for Dave Grohl, on the final day before all the lights go out for one last time, you can be certain that the cockroaches will be banging out a decent rendition of Everlong.

So you’ve got the itch to do something. Go ahead and make something really special, something amazing, and sing in your own voice like Dave Grohl. That’s what every entrepreneur must do too, use their own creativity to shape their own innovation agenda and make their mark.

Lessons in entrepreneurship from Thomas Telford

For thousands of years the only way to cross the Menai Strait to Anglesey from the North Wales mainland was to walk it at low tide, a perilous experience at the best of times, or to make an equally hazardous ferry crossing. But on January 30 1826, as bands played and locals waved flags and cheered, the Menai Suspension Bridge formally opened, the world’s first modern suspension bridge.

Last Saturday, August 10, marked the two hundredth anniversary of when work had begun building the iconic bridge in 1819, led by Thomas Telford. He had been given the task of improving the London to Dublin journey via the Holyhead road, a route that became the A5. Completing the bridge shaved nine hours on the London to Holyhead journey, and was immeasurably safer.

Because of the high banks and fast flowing waters of the Strait, it would have been difficult to build piers on the shifting sands of the seabed, and they would have obstructed navigation. Also, the bridge had to be high enough to allow the passage of the tall ships of the day. In view of this, Telford proposed that a suspension bridge should be built.

Construction of the bridge began with the towers either side of the Strait. Made from limestone quarried at nearby Penmon, they were brought by barge to the site. The towers were of hollow construction, reinforced with metal girders and stanchions inside. The problem of spanning the 600ft Straits was solved by creating sixteen giant chain cables made from iron, each of them weighing 121 tons.

The cables were strung from the towers across the water in huge loops. In order to stop them rusting, the cables were soaked in linseed oil and then painted. The stonework on the towers was finished in 1824, five years after it had begun. Stringing the giant cables took a further two years. The magnificent Menai Suspension Bridge was called the best road built anywhere before the coming of the motor car.

I was about eight years old when I first stood on the bridge where Telford once stood. It was my grandfather, Sydney Brookes, born on Anglesey, who taught me to love the bridge, with it’s industrial history, that produced such a magical sight. This was to be my first encounter with the Scottish stonemason-architect-engineer-entrepreneur, Thomas Telford, and his achievements have stood out in my mind since.

Telford is a role model for any modern day innovator and pioneer, designing and building an enormous chunk of the infrastructure of Georgian and early Victorian Britain, revered by engineers and industrial archaeologists alike. Born at Glendinning, Eskdale, Scotland in 1757, his father John was a shepherd and died in November the same year. He received elementary education at the local school and also helped out with various jobs around the area. He was known locally as ‘Laughing Tam’.

Aged fourteen he was apprenticed to a stone mason, and examples of his work can still be seen in Langholm and Westerkirk areas today. In 1780 he moved to Edinburgh and worked around Princes Street. In 1782 he travelled to London and gained promotion to a first class mason. He then worked in Portsmouth dockyard as a supervisor, where he developed his design and project management skills.

In 1815 he was commissioned to improve the route from London to Holyhead, which included major works such as Waterloo Bridge at Betws y Coed, Nant Ffrancon pass in Snowdonia, and the Menai Bridge. The commission was extended to include the Bangor to Chester road, which involved the headland roads and tunnels at a Penmaenmawr and Penmaenbach, the embankment crossing the Conwy estuary and the Conwy Suspension bridge. The whole commission was completed in 1826.

He constructed the aqueduct at Pontcysyllte, which carries the Llangollen canal across the Dee Valley in a long iron trough. The aqueduct opened only a few weeks after the battle of Trafalgar, with a flag-flying ceremony that echoed the mood of a nation that was being melded together by industrialisation and military victories. Telford was in the vanguard of this movement, building things not for private gain but for progressive purpose, with the clear intent of creating a stronger and more united kingdom.

Telford grew from a poor shepherd boy from the Borders to become a self-made man and an audacious visionary. In his seventy seven years, the iron-willed Telford worked on many ambitious projects, including ninety-three large bridges and aqueducts. He cut the great waterway, the Caledonian Canal, from sea to sea across the top of Scotland. He constructed more than a dozen road schemes in England and Wales.

He was the architect of over thirty churches in Scotland, worked on water works, improved river navigation and devised drainage schemes. Towards the end of his life he surveyed early railway routes, and died in 1834 just as railways were spreading across the country.

Telford shaped the lives of the Victorian civil engineers who followed him and led the Royal Institution which still guides the engineering profession. Almost everything he built is still in use. An intensely private man, Telford never married or had children, but he was an amateur poet who sent his verses to Robert Burns, a contemporary. He was also a friend and travelling companion of the poet laureate, Robert Southey, who came up with his soubriquet – Colossus of Roads.

He was always on the move, hugely energetic, a man in a hurry to get things done. He wasn’t an inventor, but he was brilliant at seeing possibilities in a project, then finding the right people. One of the joys of his work is that pretty much everything he built was beautifully designed and architected, not simply functional. People cared about the beauty of structures then in a way they don’t now – Wordsworth wrote a sonnet about one of his iron bridges.

Telford advanced the art of building in iron, with many of his bridges remaining in use today. He is buried in the nave of Westminster Abbey, known as the man who joined up the kingdom, not only as an engineer, but as an entrepreneur who could take risks, who knew about design, financing, business, and the importance of teamwork to evolve superior engineering feats at a rapid pace.

So as we admire his finest legacy spanning the Menai Strait some two hundred years after the first block went in place, what can we take from the heritage and spirit of endeavour from Thomas Telford, into our C21st entrepreneurial ventures?

Never give up attitude One eminent trait of Telford was that no matter what the obstacle was, he never gave up. Telford was exceptionally motivated and self-driven. Unlike ordinary men, he displayed outright determination to continue and keep moving forward through all disparities. Telford had a clear vision of what he wanted and was wholeheartedly driven to do the right thing in achieving what he desired. Persistence is very important. You should not give up unless you are forced to give up.

Aim for the big picture Telford targeted exceedingly challenging obstacles, ready to take big risks and had no short-term gains in sight. There was a time when no one believed in his ideas, but this did not get his spirits down. He believed in himself.

In the words of Muhammad Ali, Impossible is just a big word thrown around by small men who find it easier to live in the world they’ve been given than to explore the power they have to change it. Telford’s enormous ambition -to do what everyone said couldn’t be done – far exceeded the vision of everyone around him. Doing the impossible starts with having a grand, albeit crazy, vision. He aimed for breakthroughs and the big picture every time. He brought revolutionary thinking into engineering advancement.

Work on the ground level Telford possessed the ability to think at the system level of design. He knew exactly what he wanted and sat with his team, he was the connection between the vision and engineers’ interest. Telford seemed to be a taskmaster but his attitude set the culture of the team and project. He believed in getting his hands dirty by working with the engineers on the ground. This pragmatic style of leadership never goes amiss in a startup.

Belief in self-analysis Telford believed in self-analysis and critical thinking about oneself. He thought that people did not think critically enough – and it is one of the reasons for startup failure, founders often take too many things for granted without enough basis in their business model and market assumptions. Don’t delude yourself into thinking something’s working when it’s not, or you’ll get fixated on a potentially bad solution.

Being a competent engineer requires you to solve complex problems and navigate around difficult situations when they arise, a useful skill for any entrepreneur. There is little structure and lots of complexity in engineering projects that you need to navigate daily, as someone who is running a start up. You have to assess risks and challenges wisely, and pivot when required.

For both engineers and entrepreneurs, reflection and self-conscious analysis are essential. Both need to examine their projects to prototype better solutions, make changes quickly and persevere even if challenges seem great.

Problem Solving skills Perhaps it’s no coincidence that many entrepreneurs started their companies in a garage – from Apple, Amazon to Harley-Davidson. For many, the idea of a garage is synonymous with tinkering, and you can imagine Telford working through different versions of his thinking – given many of his engineering feats were ‘firsts’ in terms of design and solution

Analysing a problem from a “What if… then” point of view allows a startup founder to face a challenge with an open mind and to reach an educated solution. If the solution is not met, the experiment is not a failure; it is simply restarted.

A ‘crystal clear’ massively transformative purpose Not a phrase around at the time of Telford, but it’s a phrase that captures the inspirational work of Elon Musk, and it applies to Telford. Part of Telford’s ability to motivate his team to do great things was his crystal-clear ‘Massively Transformative Purpose’, which drove each of his engineering ventures. Musk’s MTP for Tesla is to accelerate the world’s transition to sustainable energy. To this end, every project Telford completed was focused on his vision and backed by a Master Plan. Have a vision, make it happen.

Musk says I try to do useful things. That’s a nice aspiration. And useful means it is of value to the rest of society. Are they useful things that work and make people’s lives better, make the future seem better, and actually are better, too? I think we should try to make the future better.

This is the ideology of Telford, and though basic, it’s actually very rare. Think of the other names we associate with entrepreneurship and innovation this century, they’re people who’ve built amazing operating systems, devices, websites or social-media platforms. Amazing innovations yes, but not with the impact Musk seeks to achieve, or indeed Telford delivered.

Telford was Britain’s greatest civil engineer, who can take the credit for much of the industrial revolution’s sublime architecture. His achievements were truly remarkable. Throughout his life he remained a peripatetic bachelor, hurrying from one job to the next, writing instructions and plans from country inns by candlelight.

The roads and bridges he built carried fishermen to the village and the fish to the cities, built the church in which they prayed, the port which landed the herring, and the harbours from which some of them emigrated to new lives in North America: all of them were his.

Telford had the entrepreneurial spark. He was more than just ideas and allure. Telford was a rare business leader who was interested in mankind as a whole and wanted to explore how engineering could change the world he lived in. The Menai Suspension Bridge is a remarkable testimony to this spirit, and his entrepreneurial endeavours.

Greggs: an agile approach to strategy & business model thinking

John Gregg founded his bakery business in 1939, selling eggs and yeast from his bicycle in Newcastle. The business grew, and his son Ian joined his father and mother, selling pies from his van to miners’ wives. They opened their first shop in Gosforth in 1951.

When John died in 1964, the bakery was taken over by Ian, and major expansion began, including the acquisitions of other bakeries such as the Bakers Oven chain from Allied Bakeries in 1994.

Greggs grew to be the largest bakery chain in the UK, home of the bacon sandwich and a coffee for two quid special offer which, disappointingly, is now £2.10 (a friend told me, honestly), famous for pies and pasties and everything you firmly resolved on December 31 would never touch your lips again.

A couple of years ago, Greggs fell victim to adverse PR about its product range and customer base. Oh how the Prêt crowd sniggered into their avocado and crayfish salads. Yet plucky old Greggs just got its head down and kept growing. ‘It’s a northern thing’ no longer serves as an explanation. The patronising notion that Greggs’s popularity is inversely proportional to the nation’s economic fortunes also fails to explain its steady expansion.

Today Greggs generate £1m a week from sales of coffee. It has repositioned the brand from an ordinary bakery-to-take-home to a high growth food-on-the-go entity, meeting changing customer demands and evolving food culture.

A new strategy was introduced in 2013 under CEO Roger Whitehouse, formerly Head of M&S Food, which focused on four pillars: Great tasting freshly prepared food; best customer experience; competitive supply chain; first class support teams.

Whitehouse introduced a ‘restless dissatisfaction’ approach to compliment the traditional business values, ensuring the business would never stand still after recovering from a period of stagnation. He implemented some radical changes, including closing the in-store bakeries, and introducing the ‘Balanced Choice’ range of products with less than four hundred calories, healthier options to the traditional product range.

And it’s worked. Having launched the first vegan sausage roll in January, last week the company announced a 50% rise in profits to £40.6m in the first half of 2019. The business is handing shareholders a £35m special dividend after total sales rose 14.7% to £546m.

In 2016, Greggs weren’t in the takeaway breakfast market but now only McDonalds sells more takeaway breakfasts. With a Fairtrade Expresso, it has overtaken Starbucks to become the third-largest takeaway coffee seller, behind Costa and McDonalds, while only Tesco sells more sandwiches.

So what are the lessons from the success of Greggs changing its business strategy and model that we take into our startup thinking?

1.     Be agile in how you connect with customers

Greggs expects to pass 2,000 outlets this year, 65% are on high streets, with the remaining 35% located in retail and office parks and in travel locations such as railway stations and petrol forecourts. The aim is to change the emphasis of the business so that it is 60% non-high street by the time it has 2,500 shops.

Part of this is having many of its stores open earlier and close later, in order to target those going to and coming back from work, expanding its breakfast menu to suit, and with ‘Greggs à la carte’ stores to open late to 9pm to lure evening takeaway diners.

As well as its new drive-through locations, the company is trialing a click-and-collect service, as well home and office delivery by Just Eat and Deliveroo. They aim to integrate click-and-collect and delivery services with the company’s Greggs Rewards app, which offers free drinks and birthday treats.

Greggs has previously failed with new ideas such as Greggs Moment, a coffee shop-style outlet with seating, and the Greggs Delivered service, which is only available in Newcastle and Manchester city centres, three years after it launched. However, the business is now at a scale where it can experiment without too much risk.

Takeaway: Greggs route to market strategy is to based on expanding their reach to enhance customer convenience, a ‘fish where they swim’ strategy, reducing the barriers between themselves and their customers, uplifting the customer experience and making the ability to connect and purchase convenient.

2.     Build your brand to face your market

Greggs has in recent years persistently bucked the wider trend on UK high streets, where most retailers are struggling to compete as sales shift online and the cost of running stores rises.

In 2013, Greggs began to transition out of the bakery market with the reasoning that it couldn’t compete with supermarkets, switching to focusing solely on the ‘food on the go’ market after discovering that 80% of its business was with that market. They stopped selling bread in 2015.

Greggs has worked hard at getting consumers to think about it as a food-on-the-go chain, developing ideas such as online ordering for collection and home delivery, developing strategic partnerships with their supply chain to focus on the four key pillars of their strategy.

They are more in touch with where the customers are today. It has managed to cater to new markets without being overly ambitious. The builder can still come off the building site and get a hot pasty, but there are also salads. The decor is still recognisable even if it has been upgraded and the older traditional customers still feel comfortable.

Takeaway: Many businesses want profit as their objective. But if you only focus on short-term wins and results, you get distracted from doing the work required to build the skills you need to grow and scale, and it’s the ability to scale that matters. The process is more important than the outcome at early stages of a change of strategy. Focus on getting good before you worry about getting big.

3.     Look forwards, not backwards with your product offering

Greggs sells 1.5 million sausage rolls a week but created the new vegan option due to public demand after an online petition signed by 20,000 people. In recent years Greggs has been innovating within its product range to appeal to a broader range of customers. Its ‘Balanced Choice’ healthy eating range, introduced in 2014, offers options including wraps and salads, all below 400 calories. It also sells gluten-free and several vegan lines.

The company also believes it can take advantage of rising demand for food ‘customisation’, driven by allergies and ‘food avoidance’ preferences, and its stores now make sandwiches to request.

One in eight new customers have bought a vegan sausage roll in 2019, which has overtaken doughnuts and other pastries to become a bestseller. The traditional sausage rolls remain at number one – with its 96 layers of light, crisp puff pastry – but there are more vegan products in development, including a vegan doughnut. It’s worked, such that Ginsters released their own vegan product for the first time in its 52-year history.

Takeaway: Greggs has been bold in its response to the adverse publicity on its offering and changing food culture. Aligning your product strategy with a focused brand image and route to market is core to any business model.

4.     Be clear about your marketing message & tone of voice

Before the Greggs vegan sausage rolls went on sale, TV presenter Piers Morgan sent out a tweet: Nobody was waiting for a vegan bloody sausage, you PC-ravaged clowns. The tone of the company’s response: Oh hello Piers, we’ve been expecting you – friendly but with a slight edge, was perfectly attuned to the ironic, self-confident marketing Greggs has adopted, a James Bond-inspired, droll putdown that was the perfect riposte.

Their hilariously portentous launch video – part of a build-up that parodied the release of a new iPhone model with journalists sent vegan rolls in mock iPhone packaging and stores sold sausage roll phone cases – meant that for days Twitter was engulfed with people talking about a £1 bakery product.

The vegan sausage roll campaign, officially launched to support the Veganuary campaign that encouraged people to give up animal products for a month, followed other memorable promotions include a Valentine’s Day campaign offering ‘romantic’ £15 candlelit dinners in Greggs shops, and a spoof ‘Gregory and Gregory’ event, and one faux pas: a 2017 advent calendar tableau of a sausage roll in a manger. After complaints Greggs apologised and reprinted with a different scene featuring Christmas muffins.

Takeaway: Greggs found its distinctive marketing style in 2012, when it saw off then-chancellor George Osborne’s proposed ‘pasty tax’ on hot takeaway food. Since then it has been consistent in its purposeful, structured and memorable content driven communication strategy, making the brand relevant to its target audience and differentiating its offering in an increasingly competitive market to reposition the brand.

5.     Don’t let your business model become stale

Innovation can be about efficiency. Look at Ikea, and The Billy bookcase. It’s a bare-bones, functional bookshelf if that is all you want from it. The Billy isn’t innovative in the way that the iPhone is innovative. The Billy innovations are about working within the limits of production and logistics, finding tiny ways to shave more off the cost, all while producing something that does the job. It demonstrates that innovation in the modern economy is not just about snazzy new technologies, but also boringly efficient systems.

The Greggs shop environment has been improved and significant investments made in logistics and delivery systems to make them more efficient and scalable. In-store ordering moved to a centralised forecast and replenishment system rather than relying on shop teams filling in manual order forms, which resulted in order accuracy and improved availability for customers.

All shops are on a refurbishment programme (every seven years) to ensure they stay looking bright and welcoming. In-store point of sale and window displays remain key to Greggs’ marketing strategy, however, a loyalty app was also introduced.

Takeaway: innovation in Greggs is about efficiency, economy and effectiveness, searching for ways to make their products even better and affordable for their target market. A ‘back to basics’ focus on the business model reflects the culture and humility of the brand. Combined with brave decision making to implement change and execution in a consistent, simple and continuous manner has delivered the results.

6.     Ensure your folks keep clear heads

Amidst the hullaballoo and the fury of the frantic activity in the coming and going of customers at busy times, staff have to keep a clear head. In the heat of the moment, they cannot get caught up in the intensity and frenzy. Resilience in times of peak demand is needed to keep the customer experience as fresh and stimulating as the steak bakes.

When you go to a Greggs, the staff are so engaged in what they do its untrue, they are like whirling octopus serving customers, and they do it with good humour, bantering with regulars, enjoying the success of seeing returning customers, before going again.

With 10% of profits going to the Greggs Foundation to help fund Breakfast Clubs for children and over £1m raised annually for Children in Need, the vegan pastry has helped change the perception of Greggs, but fundamentally it’s a people business, about delivering service, experience and the community it operates.

Takeaway: So, focused on a simple, core value proposition – reasonable quality food at reasonable prices, consistently produced and scaled – but the fundamental premise is to make customer experience the brand differentiator.

Many takeout food companies are head-on competition to Greggs, but due to its focused marketing strategies highlighting choice, quality, nutrition & easy access, the company is able to create sustainable advantage.

Changing lifestyles, changing eating habits and increasing health awareness factors are affecting the growth of the companies in this industry. Greggs has set its strategy from a customer’s point of view and with customer-based insights, to ensure the business model is as robust as it can be.

Adopt Greggs’ agile approach to strategy and business model thinking, to focus on the horizon and hold your vision. Do something everyday to move your business forward, and that makes you stand out from the crowd. A sheep has never stood out from another sheep, so don’t follow the herd blindly. People will take notice.

The innovation mindset of Alan Turing

Alan Turing is the founder father of computer science, the originator of the dominant technology of today. But these words were not spoken in his own lifetime.

Turing, the progenitor of modern computing, is a giant on whose shoulders so many now stand. Post war at Manchester University, his genius embraced the first vision of modern computing and seminal insights into what we know as ‘artificial intelligence’. As one of the most influential Bletchley Park code breakers of World War II, his cryptology yielded intelligence that hastened the Allied victory.

Turing has now been recognised for the enormous impact his work has had on how we live today, chosen by the Bank of England to be the new face of its £50 note. The note will include a table and mathematical formulas from his work, and also include a quote: This is only a foretaste of what is to come, and only the shadow of what is going to be.

The Bank of England has hidden a tribute too – on the banknote are the numbers 1010111111110010110011000, which is a binary code that can be converted into decimal numbers to reveal Turing’s birthday – 23061912 or June 23, 1912. The new polymer £50 note is expected to enter circulation by the end of 2021.

On June 7, 1954 Turing died a criminal, forced to endure chemical castration following a conviction under Britain’s Victorian laws against homosexuality. The UK Government subsequently apologised for his treatment in 2009, and he was granted a royal pardon in 2013. A coroner determined that he had taken his own life from cyanide poisoning, a half-eaten apple beside him. The motive for his apparent suicide remains unclear, but known homosexuals were denied security clearances, which meant that Turing could not be involved in secret work during the Cold War, leaving him excluded and embittered.

Turing’s name is associated with the top-secret wartime operations of code breakers at Bletchley Park, where he oversaw and inspired the effort to decrypt ciphers generated by Nazi Germany’s Enigma machine, which had once seemed impenetrable. The Germans themselves regarded the codes as unbreakable.

On declaration of war, Turing joined the Bletchley Park code breakers at the Government Code and Cypher School, the forerunner of GCHQ, working in makeshift huts. Turing’s section, ‘Hut 8′, deciphered Naval and in particular U-boat messages, and was a key unit at Bletchley.

Their greatest initial challenge was figuring out the method of encryption of the German Enigma device, which was invented twenty years earlier by Arthur Scherbius, a German electrical engineer who had patented it as a civilian machine to encrypt commercial messages. The machine worked by entering letters on a typewriter-like keyboard and then encoding them through a series of rotors to a light board, which showed the coded equivalents. The machine was said to be capable of generating almost 159 quintillion permutations.

At the time, German submarines were prowling the Atlantic, hunting Allied ships carrying vital cargo for the war effort. The Allies relied on the cryptologists to decode messages betraying the U-boat locations. By one estimate, Turing’s work may have cut the war short by two years. They allowed code breakers to decipher up to 4,000 messages a day.

By 1942, Turing was the genius loci at Bletchley, famous as ‘Prof’, shabby, nail-bitten, tie-less, sometimes halting in speech and awkward of manner, the source of many hilarious anecdotes about bicycles, gas masks, the foe of charlatans and status-seekers, relentless in long shift work. He was known for chaining his tea mug to a radiator to prevent it from being taken by others.

In the last stage of the war (for which he was awarded an OBE) he created the ‘Universal Turing Machine, in effect the digital computer, a machine that would offer unlimited scope for practical progress towards embodying intelligence in an artificial form.

The concept of the Turing Machine has become the foundation of the modern theory of computation and computability. Imagine, as Turing did, each particular algorithm written out as a set of instructions in a standard form. The work of interpreting the instructions and carrying them out is itself a mechanical process, and so can itself be embodied in a particular Turing Machine, namely the Universal Turing Machine, ‘one machine for all possible tasks’.

It is hard now not to think of a Turing Machine as a computer program, and the mechanical task of interpreting the program as what the computer itself does. Additionally, the abstract Universal Turing Machine naturally exploits what was later seen as the ‘stored program’ concept essential to the modern computer: it embodies the crucial insight that symbols representing instructions are no different in kind from symbols representing numbers.

Turing’s post-war work at the University of Manchester on the first functioning British computers was hugely significant. He laid down principles that have moulded the historical record of the relationship between humans and machines. He was fascinated by the interplay between human thought processes and the computer, and spoke about ‘building a brain’.

At Manchester, Turing made highly significant contributions to the emerging field of computing, including the Manchester Mark 1, one of the first recognisable modern computers. Turing essentially pioneered the idea of computer memory, publishing a seminal paper, On Computable Numbers, referred to as ‘the founding document of the computer age’.

His ‘Abbreviated Code Instructions’ marked the beginning of programming languages. Out of this came pioneering innovation on what would now be called neural nets, written to amplify his earlier suggestions that a sufficiently complex mechanical system could exhibit learning ability. This was never published in his lifetime.

At Manchester, Turing could perhaps have led the world in software development. His partly explored ideas included the use of mathematical logic for program checking, implementing logical calculus on the machine, and other ideas which, combined with his massive knowledge of combinatorial and statistical methods, could have set the agenda in computer science for years ahead.

This, however, he failed to do; his work on machine-code programming was produced only as a working manual, limited in scope. Instead, there followed a confused period, in which Turing hovered between new topics and old.

Out of this confused era arose, however, the most lucid and far-reaching expression of Turing’s philosophy of machine and Mind: his paper Computing Machinery and Intelligence (1950) showed the wit and drama of the Turing Test that has proved a lasting stimulus, a classic contribution to the philosophy and practice of Artificial Intelligence research.

Eccentric, solitary, gloomy, vivacious, resigned, angry, eager, dissatisfied — these had always been his ever-varying characteristics, and despite the strength that he showed in coping with difficult personal circumstances, no-one could have predicted his shabby treatment, which caused his demise.

Turing’s work breaking the Enigma machine remained classified long after his death, meaning that his contributions to the war effort and mathematics were only partially known to the public during his lifetime. It wasn’t until the 1970s that his instrumental role in the War victory became public with the declassification of the Enigma story. The actual techniques Turing used to decrypt the messages weren’t declassified until 2013.

From Tesla, to Turing, to Jobs, to Musk, entrepreneurs’ vision and endeavour pushes civilisation forward. They are the driving force of human evolution, the vanguard of innovation leading us into the future. Innovators are not just those who run a business as entrepreneurs, an innovator is anybody who is consciously building the future that has an impact on society.

To create something truly original requires a sense of courage, curiosity and vision. The interesting paradox here is that often those who invent new things also have a healthy disrespect for what has already been achieved. They use the past not as a boundary, but as the frontier upon which to innovate.

In this sense, those seeking to innovate to find reassurance in the discomfort of originality, as those who strive to create new things are quickly confronted by the stark reality that we live in a world that finds comfort in doing what is tried and tested. The battle against conventional wisdom, therefore, becomes the innovator’s greatest encounter.

Turing’s scientific contributions are in line with many of history’s greats. It’s also easy to recognise many of Turing’s personality traits in today’s tech entrepreneurs who succeeded him. All are great dreamers, certainly, but they also possess a tenacious and sometimes intransigent character with regards to the realisation of their vision.

Turing’s is a parable of radical innovation that goes beyond incremental advances in search of great opportunities that have the potential to open up a nexus of possibilities for society. It is what Peter Thiel, in his book Zero to One describes as 10x innovation, meaning that it provides a solution at least 10 times better than the current available solution.

Thiel points as examples to the Google algorithm, which was at least 10x more powerful than the others search engines that preceded it, as well as the Amazon platform, which offered at least 10x more books than any bookseller in the world. It is this kind of innovation, he notes, the world goes from a state of impossibility to a market reality.

Not many entrepreneurs today are working on 10x projects. Perhaps it is Elon Musk, with his SpaceX, Hyperloop and Tesla projects that will mark him out as the 10X innovator of the early C21st. The 10x innovation can sometimes be scary – recall the introduction of modern cinema in 1895 by the Lumière brothers, where the audience fled the room when they thought that the train in the movie would come out of the screen!

Fast-forward two decades from Turing’s death, to guys making personal computers in a garage in San Francisco in 1976. They had a name for their product and needed a logo. They idolised Turing’s ingenuity, genius and talent for putting together the first computer, and decided to honour him and comment on his persecution by removing a single bite from the apple graphic they had picked to represent their company.

And that’s how we got the iconic Apple logo on the back of all of our phones, computers, and iPods. Designer Rob Janoff says it was an easy choice, a tribute to Turing by Jobs and Wozniak. Jobs said the apple logo symbolises our use of computers to obtain knowledge and, ideally, enlighten the human race.

So the story goes – other theories – that the logo references Newton’s discovery of gravity also exist. The original apple logo from 1976 featured a hand drawn image of Isaac Newton under the tree where the apple fell with the copy: A mind forever voyaging through strange seas of thought alone. Perfectly sums up Apple, as pioneers.

Whatever the story of the Apple logo, everyone using a keyboard, opening a spreadsheet or a word-processing program today, is working on an incarnation of a Turing machine and his legacy of innovation.

We don’t celebrate Turing enough, probably in part because of his sexuality, and also probably because he was a computer scientist and mathematician. We don’t value that history enough either. For me, putting him on a banknote for the public to see everyday is a start. Better, put him in the school curriculum as an icon in the history of science.

Turing was a remarkable 10x innovator. We can only see a short distance ahead, but we can see plenty there that needs to be done, he once said of himself. Whatever you’re working on as an innovating entrepreneur today, this week, this month, look to the achievements and mindset of Alan Turing. You cannot climb uphill by thinking downhill thoughts. He didn’t stop to think how far he could go, neither should you.

Take a giant leap for your startup

On July 20, 1969, the world slowed down to watch a key moment in human history. Dinners went cold, families stayed up late, staring at their television sets. After a journey of eight days, three hours, eighteen minutes, thirty-five seconds Neil Armstrong walked a few steps down a ladder and placed his boot in the fine light-gray moon dust, followed by Buzz Aldrin. We were all standing there with them.

President Kennedy’s vision for putting a man on the moon stretched the best minds in aerospace to their limits and necessitating new ways of thinking and working – everything a startup needs to do.

It was incredible innovation, but it was also intimate. The Lunar Module was small – the two astronauts had 4.7m3 of pressurised volume between them, roughly twice the volume of a red telephone box. A tiny world, but a fully functioning spacecraft like none before it. Everything else on Apollo had been tried out at a smaller scale, but there had never been anything like the Lunar Module, designed to come down to land by its commander’s hand and eye in a place where nothing had landed before.

Humans going into space, the prospect of an unprecedented experience. Their hearts are beating fast. They see the moon surface in contours, pocked surface, hard-to-judge distances and near horizons, which gives them the ‘Earthrise’ view of Earth.

At the critical moment, Aldrin got a klaxon ringing in his earpiece. The console responded with error code 1202. Despite months of simulations, Aldrin didn’t know what this one meant; Armstrong, equally baffled, radioed Mission Control for clarification. The stress in his voice was audible. In that critical moment, hurtling like a paper plane toward the surface of the moon, the guidance computer had crashed.

The two men had trained for a computer error scenario, but it was up to Houston to make the call. When Mission Control heard Armstrong’s tense request for information, a well-rehearsed sequence of events played out. The scenario was a go – because below a 100 feet altitude an abort was no longer possible. Armstrong would be forced to attempt a landing even if his computer was malfunctioning.

He had little margin for error. On a hard crash landing, the astronauts might be killed; on a not-so-hard crash landing, the astronauts might survive, only to be stranded on the moon. In this nightmare scenario, Mission Control would bid Armstrong and Aldrin farewell, then cut communication as the two prepared to asphyxiate. Michael Collins, in the command module, would make the long journey back to Earth alone.

Imagine pulling the plug on the moon landing. Imagine not pulling the plug, then explaining to a nation and their families why two astronauts had been killed. By the time Houston relayed the message to Armstrong, almost 30 seconds had passed.

Armstrong resumed assessing the course to the landing area, from spending hours studying surface photographs, committing landmarks to memory. He’d noticed earlier that his trajectory was a little long, but before he could fully react, Aldrin queried the computer for altitude data. As before, he was answered by an alarm. The computer crashed again.

Back at Mission Control, was Don Eyles, 26 years old, who had programmed the software for the final descent. The first restart had alarmed Eyles. The second terrified him. This was not just a glitch but a crash. Eyles was out of the command loop, but he knew how the computer worked better than anyone. What Eyles deduced in that terrifying moment he would not reveal publicly for years to come: this scenario was not a go. It was an abort.

The console displayed nothing, just blank. Armstrong’s heart began to race, rising to 150 bpm, the same as a man at the end of a 100m sprint. With the moonscape zipping by outside his window, he was the closest any human had ever been to another world.

There were five computer crashes in four minutes. Mission Control went quiet, there was nothing useful left for them to say. Armstrong, following protocol, assumed manual control. He was going to have to eyeball it, piloting a malfunctioning spacecraft on an alien world.

He slowed the forward momentum, then rotated the legs toward the surface. Aldrin read aloud a steady stream of figures. With almost no fuel to spare, the Lunar Module dropped in slow motion to kiss the surface upright, and the particles of moondust hung suspended in the sunlight until the gentle lunar gravity pulled them back to rest.

Shortly afterwards, Armstrong planted the first human foot on another world. With more than half a billion people watching on television, he climbed down the ladder and proclaimed That’s one small step for a man, one giant leap for mankind. Only a few have shared this vantage point.

Armstrong and Aldrin spent 21 hours, 36 minutes on the moon’s surface, including a rest period of seven hours sleep. They blasted off back home, knocking over the American flag they had planted. They reunited with Collins, then three days later, splashed down in the Pacific.

Now, half a century after Armstrong planted his foot on the surface of the Moon, a new era of space exploration is beginning. Falling costs, new technologies, Chinese and Indian ambitions and a new generation of entrepreneurs promise a bold era of space development. It will range from the big business of launching and maintaining swarms of communication satellites in low orbit to the niche one of tourism for the wealthy.

Back in 1969, I was there. I saw Armstrong take his giant leap for mankind in grainy black and white images on the television screen. I’ve always had a keen interest in space adventure. At university, when looking through the Careers Guide for Graduates 1984 I stopped at the letter ‘A’ and send off applications for ‘Accountancy’ roles. I never got to ‘Astronaut’. Anyway, there probably wouldn’t have been the legroom in my allocated Apollo seat.

Landing on the Moon is, for me, mankind’s greatest entrepreneurial act. Think about it. Go outside tonight and look up. Imagine yourself up there, looking down. Imagine! How would you feel, blasting out of the atmosphere, orbiting the Earth, and standing on the moon! WOW.

Courage, ingenuity and one heck of a big adventure, leaping off into the unknown, driven by your vision, just like launching your own startup business. So what lessons can we take from the anniversary of this extraordinary achievement for startup entrepreneurs?

1. It starts with a vision

President John Kennedy went before Congress on May 25, 1961 and said we were going to the Moon. To say Kennedy’s vision was bold and set an ambitious timeline is an understatement. As a startup founder, he set down the purpose and the vision, expectations that you don’t think are realistic.

2. Have a sense of purpose

We knew what had to be done. How to do it in 10 years was never addressed before the announcement was made. But quite simply, we considered the program a number of phases – Dr. Maxime Faget, Chief Engineer & Designer of the Apollo command and lunar modules

When launching your startup, it’s a case of not knowing the unknowns, so don’t bother in trying to craft a detailed plan based on guesses, instead, break it down from the big vision into small steps and focus on attaining each one, one at a time.

3. Iterate – and don’t be afraid to modify the plan

On descent to the moon, the Lunar Module’s computer died, threatening the landing sequence. Likely crash at an alarming velocity, Armstrong took manual control, while Aldrin fed him altitude and velocity data. They successfully landed on the moon’s surface with just seconds of fuel left. If they hadn’t acted, Armstrong’s iconic moonwalk would never have happened.

No business plan survives the first contact with a customer, so remember that even the most well thought out startup plans may need to be altered if circumstances change or a new opportunity arises.

4. A startup is an experiment

We said to ourselves that we have now done everything we know how to do. We don’t know what else to do to make this thing risk-free, so it’s time to go – Dr. Christopher Kraft, Director of Flight Operations

Without taking that risk, the achievement would never have been made. NASA handled risk by actively looking for it and constantly asking themselves, ‘What if?’ It’s about calculated risk, don’t let an acceptable amount of risk keep you from pushing ahead.

5. It’s all about the team & communication

The Apollo team scaled rapidly, from a small founding team to thousands of people. Coordinating such an effort required aligning the entire team with set priorities. At no point was any team in the dark about what another group was doing, or what support needed.

As your startup team grows, don’t just trust communication will fall into place on its own, or that everyone assumes the same priorities. Create a communications plan, and check in frequently to ensure processes are running smoothly.

6. Recruit for attitude and fill your skills gaps

Responsibilities were delegated to people who didn’t know how to do things, and were expected to go find out how to do it – Howard Tindall, Mission Technique Coordinator

Delegating to people who don’t have experience may seem counterintuitive, but NASA actively encouraged this – the average age of the Operations team was 26, most fresh out of college. NASA gave someone a problem and the freedom to run with it, and the results speak for themselves. Do the same in your startup, give people the opportunity to grow.

7. Keep asking questions

The Apollo program was home to some of the most brilliant minds, and yet no one was shy about their mistakes. They made learning from their errors a central part of their process. Failure was simply an opportunity to learn and improve.

For a startup, get out of the building, talk to prospective customers and fail fast – validated learning and making retrospectives an ongoing part of your model, not one-time events, it is crucial to startup success.

8. Celebrate success as a team

We would like to give special thanks to all those Americans who built the spacecraft – the construction, design, the tests, and put their hearts and all their abilities into this. To those people tonight, we give a special thank you – Neil Armstrong, July 26 television broadcast from orbit.

At every opportunity the astronauts called the world’s attention to the efforts of their teammates back on the ground. So when you win that first customer as a startup, share that applause with the team.

Armstrong dared to dream. Life has its its twists and turns – he was nearly killed twice in his NASA training, but he never quit. Success is failure turned inside out, and you never can tell how close you are. He lived his life for a decade dedicated to training and preparation, absorbing the set backs as well as keeping his dream alive. Now whether you’ve launched a brick-and-mortar startup or mobile app, taking an idea into a product is a miraculous one. Fifty years on we’re reminded of the legacy left behind.

Armstrong had the true spirit of a pioneering entrepreneur, and Steve Blank has rewritten Kennedy’s Apollo vision, capturing Armstrong’s spirit: We choose to invest in ideas, not because they are easy, but because they are hard, because that goal will serve to organise and measure the best of our energies and skills, because that challenge is one that we are willing to accept, one we are unwilling to postpone, and one which we intend to win.

Only those who will risk going too far can possibly find out how far one can go, said poet T.S. Eliot, capturing everything about Armstrong, Aldrin and Collins that makes them true entrepreneurs. What a giant leap for mankind they made. Now go and make a giant leap for your startup.

Avoid a milkshaking from dissatisfied customers: adopt the Netflix way

The word ‘milkshake’ first appeared in 1885, as an eggnog-like drink made with whiskey. However, by the turn of the century, milkshakes were no longer alcoholic and were made with flavoured syrups, such as vanilla, chocolate, or strawberry.

The milkshake came into being as we know it – thick, creamy and chilled – in 1922, when Stephen Poplawski invented the blender, patenting a machine that reduced fruits and vegetables to a liquid. Later it inspired the invention of the bendy straw – by Joseph Friedman in 1937.

We all enjoy whizzing up a refreshing milkshake or smoothie. We’ve got indulgent chocolate, banana and strawberry flavoured shakes, plus healthy fruity shakes. However, my personal favourite is an Eton Mess freakshake. It’s my own signature recipe, a strawberry milkshake with a monster makeover – white chocolate and crushed meringues.

And then everything changed in 2019 when ‘throwing milkshakes’ emerged as a symbol of dissent. Milkshaking took off in Warrington in May, when a milkshake was thrown at Tommy Robinson, a notorious far-right activist. Videos went viral on social media under the hashtag #milkshake, drawing millions of views, and a phenomenon was born. Other far-right leaders enjoyed the same treatment, including Nigel Farage, subjected to a banana and salted caramel milkshaking. A good splattering.

Milkshaking concerns caused Scottish police to ask a local McDonalds near a subsequent Farage rally to cease selling milkshakes and ice cream. In true fast food rivalry, Burger King tweeted: Dear people of Scotland. We’re selling milkshakes all weekend. Have fun. Love BK #justsaying.

Prior to this, Milkshakes were tossed at US president Donald Trump’s recent visit to the UK, and in June a woman in Florida hurled a shake at Matt Gaetz, a congressman known for making xenophobic remarks, in what seems to be the first case of American milkshaking.

Whilst milkshaking as a form of protest is new, the art of sticking it to politicians with perishable food is old school. The first documented case of food as protest took place in 63AD, when a Roman governor was bombarded with turnips. Cream pies became a popular protest in the 1970s, drawing inspiration from classic C20th slapstick comedies, including the films of Charlie Chaplin.

But in the history of protest foods, one stands above the rest: eggs. They’re cheap, widely available, and make a mess – ask David Cameron and Jeremy Corbyn. Audiences have thrown anything and everything at stage performers to vent their ire – poisonous snakes, chairs and peanuts, while tomatoes took off in the C19th and subsequently inspired Rotten Tomatoes, one of the web’s most popular film review sites.

In post-war Greece, the practice of throwing plastic pots of tzatziki became so popular that the government introduced legislation to curb it. Law enforcers shaved the heads and cut the hems of the trousers of yogurt-wielding protesters who were caught, who were then marched through the streets as a form of public shaming.

Whether it’s milkshakes, cream pies, eggs, tomatoes or tzatziki, shows of passion or frustration from customers never get quite so extreme in business relationships. But sometimes, small changes have a big impact on how customers perceive the quality of your relationship and make the difference between loyalty and high churn rates.

According to research, it costs five times more to find a new customer than to retain a current customer.  In this age of automation, caring for your customers has never been more important.  At any moment, an unhappy customer can share their opinion through social media- or a milkshake! That’s why it’s even more important than ever to create an excellent experience for your customers to help develop your relationship with them into a lasting one.

Walt Disney said it best, Do what you do so well that they will want to see it again and bring their friends. Creating a genuine relationship between your business and your customers can help scale positive word of mouth. Creating a customer-focused culture should be a priority. Most businesses are failing when it comes to the customer experience, which is your opportunity to swoop in and engage those disillusioned customers into switching.

If there is one business we can learn from regarding getting close to their customers and providing a knock-out experience it’s Netflix, the subscription-based entertainment streaming service that offers its users on-demand access to a vast library of films and TV shows, including original in-house productions that are not available elsewhere.

For a set monthly fee, Netflix customers can access the platform’s content on demand whenever and wherever, and build their own user profiles to receive bespoke-tailored viewing recommendations.  Netflix began as a DVD rental and sales service operating by mail order in 1997, but has evolved into the world’s most popular television streaming service, with over 137 million subscribers.

By 2005 Netflix had floated the idea of a brand-new concept to futureproof their business in the face of declining interest in mail order DVD rentals. Under the working title of ‘Netflix Box’, the concept was that users could download a film overnight to watch the next day. However, 2005 also saw the successful launch of YouTube streaming, which quickly reached a position of market dominance despite the then-low video quality of its offerings.

Netflix’s plans for Netflix Box were ultimately shelved, and they began to develop the original on-demand TV and movie streaming service that we know today. The addition of original content to the platform in 2011 helped to secure Netflix’s reputation as the go-to video streaming service worldwide.

Netflix puts the customer at the centre of their business model. Their market dominance is enabled and supported by audience insights and a high level of individual user personalisation that helps to ensure that people who subscribe to the platform keep coming back for more, and tell their friends.

The brand serves as one of the best examples of customer personalisation and content strategy you can find, so what can they teach us to help startups identify better prospects, reach more of them, and increase sales.

1. Let your work make your reputation Netflix relies heavily on content marketing rather than brand marketing. Letting your work speak for itself is one of the most powerful ways to build consumer loyalty and brand. This enables Netflix to make effective use of social media in spreading the word about a new show, or getting people talking about a relaunched classic.

2. Be original Netflix Originals make up a significant portion of the most-watched content, and the viewing preferences help to not only increase viewing figures for this, but inform the development of future productions too. If you can offer something novel or original that provides you with a USP, you will immediately gain a competitive edge.

3. Remove customer pain points Removing customer pain points is important to user experience, increasing customer loyalty and boosting sales. Netflix achieves this successfully in a number of ways: an initial no-commitment free trial month incentivises a risk-free initial sign-up; the sign-up process is simple, and not overly intrusive.

This initial month’s engagement often provides all of the information Netflix needs to secure an ongoing subscription sign-up by using the insights developed to personalise and incentivise the content offered.

4. Innovate Netflix is synonymous with innovation, and this continues to drive growth and the expansion of the platform to an ever-wider audience of viewers. The company has unleashed a download-and-go feature that allows users to watch shows offline, and this effort was followed up by a push to improve Netflix’s mobile experience, which is important as the company expands into foreign territories where people prefer to watch video on their phones.

5. Use smart data, not just personal data Knowing your audience, and collating the type of data about them that you need to translate it into useful content and experience, is vital. But besides the usual ‘hard’ data, Netflix takes into account the browser patterns and usage preferences of its users to provide the most personalised and relevant content and relationship.

6. Enable self-service Based on ur basic profile information, Netflix fine-tunes their understanding of your viewing preferences by inviting you to bookmark shows and express an interest in different genres. This results in personalised recommendations that you have self-curated, and thus tailored to appeal to you.

7. Focus on your USPs and make them work for you One of my favourite features of Netflix is that most series of shows are released in their entirety – you can watch a whole season straight through on the day it is released. This ‘binge watching’ is one of Netflix’s most defining USPs, and a large part of their appeal.

8. Build the brand The Netflix brand’s tone of voice is engaging, humorous and quick witted, and this helps to translate it across multiple platforms that viewers might use to find out more, or to make a decision on subscribing. The brand values are a function of all the attributes of their product outlined above – is your brand as closely linked to your customer offering and experience.

The Netflix model is ubiquitous and speaks for itself. They understand the power of their unique offerings and the value proposition to customers, but it’s putting the customer not the content at the centre of their business model, which creates and sustains brand loyalty.

Summary

By building up a comprehensive picture of your target customers and fine-tuning the content that you offer to them to create a highly personalised, dynamic user experience, you are able to predict their needs and negate pain points.

All startups can learn from the Netflix approach to innovation and delivering this to their customers. Applying these insights across other industries might seem ambitious, but such insights are highly scalable and relevant to virtually every sector.

Originating and delivering on unanticipated customer needs is true customer innovation. Rather than focus on customer satisfaction and providing a better product than the competition, aspire to long-term customer delight and pioneer new frontiers, with less competition.

There’s little chance of humiliating milkshakes being thrown from dissatisfied or protesting customers here. Netflix have transformed customer focus to customer obsession, so that they see the product through their eyes. So, leverage the Netflix way to knock out your competition and build your customer base. Then sit back and enjoy an Eton Mess freakshake.

Extracts from an article by Polly Kay on the competitive strategy of Netflix were used in this blog.

True grit: the dna of northern startups

Manchester was, and continues to be, the home of great free-traders and free-thinkers. It has a stunning C19th architectural heritage but today is a proud C21st European city of technology, science and education, with a clubbing scene second to none – or the Hallé Orchestra, if that gets your toes tapping more.

Manchester was the site of the world’s first railway station, the place where scientists first split the atom, and the home of the first stored-programme computer. Today, tech start-ups abound, there is enough shared workspace options for every woman and her dog, and internship students and apprentices with high ambitions for themselves have great opportunities.

The elements of Manchester’s well-being are based on long‑term deep-rooted social cohesion, personal resilience and sheer graft. Compare this to the imbalance with the south-east economy, with its reliance on foreign funds and an over-sized financial services sector.

So what is it about the north that has seen people pull themselves up by their bootstraps, and grab opportunity by the scruff of the neck to set up their own businesses? It certainly isn’t anything to do with government.

The Power Up the North campaign was launched in June in a co-ordinated effort from thirty northern regional newspapers, a demonstration of regional solidarity on an unprecedented scale. The united call was for the devolution of investment, powers to self-govern and for the north to make its own future. The campaign, led by The Manchester Evening News, The Yorkshire Post, The Liverpool Echo and The Northern Echo, called for the government to launch a revolution in how the North is viewed and treated by government.

In 1962, Harold Macmillan’s home secretary Henry Brooke warned that if the Government did not prevent two nations developing geographically – a poor north and a rich south – our successors will reproach us as we reproach the Victorians for complacency about slums and ugliness. On multiple metrics, the north fares worse than the south, a yawning imbalance on income, life expectancy, and spending on everything from culture to business.

Policy orthodoxy has assumed that investment in London would create a trickle-down effect, but in practice this has never happened, and the north-south divide in England remains Europe’s most regionally imbalanced country. Since austerity began, public spending in the North has fallen by £6.3bn, while spending in the South has risen by £3.2bn. A time-warp persists. It shouldn’t be cheaper and quicker to get from London to Paris than from London to Newcastle.

Faced with such stark disparities, Power Up The North calls for new economic, social and industrial strategies that are informed by an awareness of the challenges and opportunities facing the region – an independent north would be the ninth-largest economy in Europe. Both Scotland and Wales have smaller economies but enjoy far greater devolved powers.

Through its promotion of the Northern Powerhouse, David Cameron’s Government paid rhetorical tribute to the north of England. Yet the reality remains that the original vision for the Powerhouse of a joined-up market and labour force enabled by connectivity could not be further from the reality.

Cameron’s Northern Powerhouse legacy produced little more than a succession of bland ministers who knew little about the north, and cared even less. Today, the Northern Powerhouse minister does not have a budget, or a cabinet seat. How is the voice of the north to be heard at the top table? But this is not a sob story. Power Up The North offers a timely reminder that the future of our country does not begin and end at the M25.

I’m glad I am northern. I grew up with a coal bunker outside of the house and teenage years in pubs with chunky beer glasses with a handle. I miss that – the beer glasses with handles, not the coal-bunker. I was 17 before I caught sight of Euston Station. I had no need of London then and I guess it had no need of me. However, I do believe there is such a thing as a northern sensibility and it’s nothing to do with chips & gravy. It’s a grittiness that I think is behind the sheer determination of our startup communities.

The north has a dictionary and thesaurus of its own and its words are for everyone. As Paul Morley describes the north: warmth, decency, truth and proper beer, with a side order of menace, whilst T S Eliot noted Lancashire wit is mordant, ferocious, and personal.

When you’re northern, you’re northern forever, and you’re instilled with a certain feel for life that you can’t get rid of. Let me not become too misty-eyed, but there are places in which brass bands and allotments still thrive. There is still much about northern life that would make Orwell puff on his pipe and smile.

Of course, there are also town centres that have become desolate denizens of payday lenders, discount stores and kebab shops, and employment opportunities are desperate for many despite what The Bullingdon Boys would have you believe. However, the north scores highly for self-employment hot spots, an indication that people are willing to strive for prosperity under their own efforts, even if that’s a matter of necessity after paid employment has been lost.

With jubilant jeers from the Government benches and bold growth forecasts, the innate fire-in-the-belly entrepreneurial spirit that made northern cities great from the Victorian Era onwards is present today with renewed vigour and confidence. In the lexicon of media clichés, the north is always grim, but let’s accept that there is and will always be a North-South divide because the leverage of wealth towards the global-status of London is an irresistible force, but the northern enterprise culture never died, it just went into hibernation.

But what is missing is a recognition of the innate entrepreneurial and mercantile spirit that made the great northern cities in the first place, and that from my perspective living on the edge of the Pennines, quality of life and purpose derives from people, landscape and culture, rather than weight of money.

I’m fed up of working with some great entrepreneurs and founders based in the north who can’t raise funding for some amazing innovations, backed by talented teams, yet there are five new online food delivery startups raising £2m a week in London. Or so it seems. So stuff them I say. Let’s get some of the Wilson-Gretton-Hannett-Erasmus- Saville spirit from Factory Records and let’s crack on with the unknown pleasures of our own efforts.

Can you overcome setbacks, or do you get easily discouraged? Are you confident, or do you smell of insecurity? You can’t be thin skinned or faint hearted when you run your own show. You’ve got to have vision, stamina, creative thinking and, most of all, grit and resilience. Even when your friends and family think you’re nuts, there are fundamentals of being a self-starter to push yourself outside your comfort zone. Easier said than done.

I get to work with many incredibly gifted entrepreneurs, and I’ve noticed a common thread that connects them: grit and resilience. They’re all bravely owning who they are to push their business forward. They put in the hard yards to get there. It’s all too easy to let doubt fill your hearts and minds and create self-doubt that our dreams are too far-fetched or if we’re good enough, but grit and resilience – not other people’s money – gets them through.

Sometimes you have to give yourself a good pep talk: note to self. Remember how far you’ve come, not just how far you have to go. You are not where you want to be, but neither are you where you used to be; Spectacular achievement is always preceded by unspectacular preparation. Never hope for it more than you work for it.

Grit trumps everything else. And it’s not just a north of England thing, research shows that it is one of the defining characteristics of successful start-up entrepreneurs. Psychologist Angela Duckworth’s research at Penn State University defines psychological grit as perseverance and passion for long-term goals. Check out her TED talk here:

http://www.ted.com/talks/angela_lee_duckworth_the_key_to_success_grit.html

Duckworth’s research focuses on two traits that predict success in life: grit and self-control. Grit is the tendency to sustain effort towards goals. On average, individuals who are gritty are more self-controlled, stay with their focus, and succeed.   She’s formulated a survey to determine your level of grittiness, see how you score: https://sasupenn.qualtrics.com/SE/?SID=SV_06f6QSOS2pZW9qR My ranking was 4.25, 85% on the True Grit dashboard. Not bad!

Grit has emerged as a significant indicator for success – even more than IQ, talent, and social intelligence. It’s the part of you that simply will not give up on your ideal future and works to figure out a path to get there. Many people lack this grit because they see life as a series of circumstances that happen to them rather than an ideal future that they can create.

Actor Will Smith talks a little differently about grit: The only thing that I see that is distinctly different about me is I’m not afraid to die on a treadmill. I will not be outworked, period. You might have more talent than me, you might be smarter than me, you might be sexier than me, you might be all of those things – you got it on me in nine categories. But if we get on the treadmill together, there are two things: You’re getting off first, or I’m going to die. It’s really that simple.

Launching your own startup is like jumping off the cliff with no parachute, with no promise of a parachute. You need grit and mental toughness to manage your mind-set and emotions whilst you aim for that landing spot for your business.

Grit gives you the sheer will power and determination to keep going day after day, when the going gets tough. Sometimes it’s difficult to see progress, how can you keep your eyes on the prize and yet your head down during the inevitable slog period of anything worthwhile? You fall down seven times, but have to get up eight.

Grit, courage and the human spirit are at the heart of everything I believe in, and I see that in the northern entrepreneurial vibrancy. Perseverance is the hard work you do after you get tired of doing the hard work you already did. Over time, grit is what separates fruitful lives from aimlessness, and imagine this: the north fully restored from its own efforts. That’s True Grit.

Jony Ive: how to respond when a rockstar exits your business

Jony Ive, the chief architect of ground-breaking and distinctive designs from the iMac to the iPhone, announced on Thursday that he is leaving Apple. Ive’s work seeded a tech revolution that has changed our lives. He was the key influencer on the simplistic designs of the most sought-after gadgets on the planet, curator and custodian of the Apple aesthetic. That aesthetic impulse dovetailed nicely with a business model based on frequent upgrades.

Ive’s mark is on everything Apple builds, from the airy, minimalist chic of its retail stores to seminal devices like the iPhone and iPad, newer pieces like the Apple Watch and the HomePod speaker – while Airpods look set to become another classic.

But Ive’s influence extended beyond hardware design. In 2012, he took over design of Apple’s software, which resulted in an overhaul of the iPhone’s operating system, iOS. Ive jettisoned the cutesy faux leather and paper icons and pseudo-3D textures, opting for flat and abstract iconography.

He has always sought to make things that aren’t just beautiful but are extremely functional too. He sees design about self-expression: the spark of a dialogue between inspiration and possibility; the idea sort of bashes backward and forward between a thought, a conversation, another drawing; it remains very fluid for quite a while.

Of the handful of companies that have defined C21st tech, only Apple sells its own hardware. It’s difficult to determine how much Ive’s physical designs contributed to Apple’s twenty-year growth, versus their software or marketing, but the look of the products is a big part of Apple’s brand. Ive was obsessed with the idea that the look and feel of a product was as important as the technology inside.

He gave Apple desirability. He stripped away layers of clunky technological design and created these incredible smooth shiny objects with rounded edges and fewer buttons. He applied the tradition of German modernism, which upheld the philosophy that less design was better, and simplicity was a desirable product attribute: the more you can reduce something, the more beautiful and functional it is. He created the ideal of a tech product, which was easy to use, beautiful and uncluttered.

Ive’s departure comes at a tricky moment for Apple, which became the world’s first trillion dollar company in 2018, but has faltered amid increased competition, slowing demand for smartphones, and the escalating trade war between the US and China. The company shocked investors in January when it downgrades sales forecasts.

The departure of Ive is the latest sign of major shifts in Apple’s strategy. Apple became one of the world’s most highly valued companies on the back of the iPhone, but sales of the device have begun to decline and it appears the age when hardware ruled everything has passed. Apple has begun openly discussing what’s next.

The most important thing is Apple’s culture of innovation. They are unbelievable in creating hardware, software and services, and getting them to work together. Increasingly, unifying the whole Apple experience over the individual product is showing up in their strategy. The biggest sign of change came in March when CEO Tim Cook discussed how the company was planning to launch a series of subscription services – Apple News Plus, Apple TV Plus, and Apple Arcade, a gaming service. There were no new hardware announcements.

Apple said that Ive’s role would be split, with Evans Hankey taking over industrial design and Alan Dye human interface design, reporting to COO Jeff Williams, an executive known for his operational skills, not his vision for product and design. The subtle demotion of the design group shows that Apple is emphasising its online services, the power of its components and how its products seamlessly work together, as opposed to their design. The design goal now is driving focus to the screen. A more distributed design decision-making process might be good for Apple.

Ive’s departure will not immediately impact. Apple still has talented designers, and the product planning process takes about three years, so it’ll be a while before we see the first products without Ive’s fingerprints on them.  Equally Ive’s departure may not hurt too much because of their new focus on streaming services. It’s not as if the iPhone and iPad, are going to see radical innovation anyhow, and these markets won’t see the sort of explosive growth of the past, thus there’s less need for a superstar hardware designer hanging around.

Although he’ll continue to work with Apple via his new design firm, where this leaves Apple and Ive with his new one-foot-in-one-foot-out job is unclear. Notwithstanding this, Ive leaves a yawning gap and is clearly irreplaceable as he has been one of the most important figures throughout the past few decades, his fingerprints are deeply woven within Apple’s core DNA. After the death of Job in 2011, it’s the most significant departure of somebody who was a core part of the growth story. Ive was Job’s co-founder of the second incarnation of Apple.

So how does Apple, or a startup, come to terms with the exit of a rockstar employee, or co-founder? The immediate concern is the impact on culture and loss of knowledge. Will this immediately have a downward spiral impact on the dynamics and confidence of the team, and their productivity? Here are some key steps to consider to address the issue.

Wish the former team member well privately and in public It’s not productive to be hurt or offended when someone leaves, on the other hand, you have everything to gain by parting on good terms. When a key team member leaves, understand and support the decision that’s right for him or her, thank them for their contribution, and wish them well. Do this privately and publically.

Maintain respect for the individual As a result of this approach, some of my best colleagues have returned to work with me, whilst others have become advocates. People leave for all sorts of reasons, many, if not most, of which will have nothing to do with you or your company, and everything to do with the life circumstances of the team member.

Be open and honest with your people The business need the straight story, authenticity in the face of what on the face of it is ‘bad news’, is what builds trust. It’s also important to be candid with your employees. Be clear that the departure is unwanted, change is unavoidable, but we have a solution to make it through the turbulence.

Move quickly to stop any false rumours, but don’t be afraid to show your vulnerability. If losing this team member is a big blow for you, tell them. Move on from the negative emotion of the moment by sharing your feelings, and see the challenge as an opportunity as a result.

Think it through, but do it quickly Every action has an equal and opposite reaction. When you get big news, you have to make big plans, and fast. Don’t get bogged down by emotion and stall from thinking about the next steps. Folk in the business don’t immediately need to see a plan, but they do need to know there will be a plan, and quick.

Ask your inner team for help Your team wants to help, they want to come together to overcome this challenge. You don’t have to take this on by yourself. It’s OK to say I’m really sad to be losing Jo, and it’s going to be tough to get through the next few months without her. I’ll need your help to explore all the options and come up with a plan by the end of the week. Show that you’re open to input for your proposed plan.

Build consensus around a plan, and implement it Many startup leaders fall into the trap of thinking they need to express boundless enthusiasm and confidence at all times, and always have a plan. If you come up with a plan by yourself and simply tell everyone else what it is, you’ll have less committed buy in.

Gather ideas from your team and let them create the plan with you. Focus on turning a negative into a positive. Ask for their input on how this situation provides an opportunity to do things better. As your team feels ownership, they’ll be more involved in overcoming the challenges posed by the loss of the team member.

Don’t assume you must instantly replace My preference is always to promote from within if possible, but now is the time to stay calm and think, not leap into a quick, knee jerk reaction. As the enterprise evolves, it’s imperative that you take time to evaluate the future options now available on role, skills and structure – a potential new hire could help the company with their new skills or fresh perspective – and only then determine how the role should be defined, who should fill it, and when. It’s better to make the right decision than a fast decision.

Discover your team’s hidden strengths A team may already have the resources it needs to still be successful, it may simply require some creativity and a return to basics. What talents have been hidden or lying dormant? What skills have never been shared or developed? Losing a star performer may provide a way to better engage and retain others.

See this as an opportunity for skills development and growth Every person has an inner drive to grow and develop, instead of viewing the loss as a vacuum in the business, reframe the situation as an opportunity to upskill the current team to a new level.

Steve Jobs and Jony Ive, the Jagger and Richards of Apple. Despite my thoughts on how to respond above, it’s impossible to see the company not stumbling now it’s without the most creative partnership in recent business history.

Both looked to the horizon beyond the day-to day, wanting to wrestle with the big things that made a difference. Both were relentlessly curious, fixated on following through until satisfied with the outcome, restless to a point of perfection.

With hardware getting harder, the focus of technological innovation has shifted to machine learning-based software running on cloud based servers, rather than individual devices. In smart homes, cars and wearable devices, increasingly the battlefield for tech giants like Apple, Google and Amazon, voice interfaces are more central than the tactile-visual interfaces Ive excelled in.

No wonder, then, Ive picked this moment to step away. His new firm, LoveFrom, will have Apple as a client, but Apple no longer needs him like it did. Once Ive stopped being essential, per his own paramount rule, it was time for him to disappear.

But the man who started his career by designing toilets and toothbrushes and ended up giving us the most profitable product in history is assured of his legacy. How Apple move forward with their strategy without his influence is a challenge many organisations face when they lose their own rockstar. It will be interesting to see how they respond.