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.

Be remarkable. Be a Purple Cow.

Last week Radiohead issued a vast collection (1.8 gigabytes) of unreleased tracks from the sessions for their 1997 album OK Computer, after a MiniDisc archive owned by frontman Thom Yorke was hacked, and were reportedly asked for a $150,000 ransom to return the recordings.

Instead of paying the ransom, the band made eighteen MiniDisc recordings, most of them around an hour in length, available on Bandcamp for £18. All proceeds will go to climate activists Extinction Rebellion.

Frontman Thom Yorke described the hours of recordings as not very interesting, and guitarist Jonny Greenwood – who confirmed the hack via Twitter – said: Never intended for public consumption it’s only tangentially interesting, and very, very long. Not a phone download. Rainy out, isn’t it, though?

Yorke and Greenwood are absolutely wrong: the files are a treasure trove. Frankly, a look behind the curtain of one of the most innovative albums of a generation is priceless.  This hoard of private material is an illuminating chronicle of a band reinventing the mainstream. The eighteen tracks have been documented in a Google Doc by fans. If anyone understands the dynamics of content, innovation and the internet, it’s Radiohead.

Radiohead is an English band formed in Oxford in 1985 by five school friends. Initially the band were called On a Friday, the name referring to the band’s usual rehearsal day in the school’s music room. In late 1991, after a chance meeting between band member Colin Greenwood and EMI’s A&R representative at Our Price, the record shop where Greenwood worked, they signed a six-album recording contract with EMI. At the request of EMI, the band changed their name – Radiohead was taken from the song Radio Head on the Talking Heads album, True Stories.

Since their formation, Radiohead have been lyrically and musically spearheaded by Thom Yorke, the essential spark of innovation in the band. Yorke’s somnambulant ramblings and markedly individualistic performances cutting a strangely solitary figure, making him look like a man in the throes of a tortuous titanic confidence crisis. It’s all there in the songs, spooked, soul-baring millennial masterpieces. Yorke’s vocals trail through atmospherics with angst and despair of a tortured performer.

Radiohead are in many ways the Rolling Stones of Gen Y but without the ostentatious commerciality driven by a marketing machine. They are a serious band that make serious music, a touchstone for adventurous music, yet you have to actively listen to the music and the lyrics, they have meaning.

Just like Joy Division, they are seen by many as morose, gloomy harbingers of doom and introspective sensibilities, purporting monochrome view of the world. Not everyone’s cup of tea but for me there are toe tapping and sing-a-long moments a plenty. Something about Radiohead inspires a disorienting kind of hope.

What Radiohead did to counter the hack was remarkable. It reminded me of Seth Godin’s Purple Cow, the concept that you’re either remarkable or invisible. In a world that grows noisier by the day, Godin’s challenge has never been more relevant.

Godin evolves the traditional ‘4Ps’ marketing thinking with a new P – the Purple Cow. He identified this when he was with his family driving through France and were enchanted by the hundreds of cows grazing on picturesque pastures. For dozens of kilometres, we gazed out the window, marvelling about how beautiful everything was. Then, within twenty minutes, we started ignoring the cows. The new cows were just like the old cows, and what once was amazing was now common.

Worse than common. It was boring. Cows, after you’ve seen them for a while, are boring. They may be perfect cows, brown or black cows, attractive cows, cows with great personalities, cows lit by beautiful light, but they’re still boring. A Purple Cow, though. Now that would be interesting.

On a long car drive you may see some cows on a hill, and see many more as the hours pass. Brown cow. Brown cow. Black Cow. Black Cow. There’s nothing remarkable about them, they pretty much look the same. But if you spotted a purple cow, then wow, that would be remarkable. You’d sit up in your seat and take notice; you might even pull the car over, let the kids out, take some pictures and share them with friends on Social Media.

Godin’s book came out in 2003, before the first iPhone, however, it is almost like Steve Jobs took everything Godin mentions in his book and put it into creating the iPhone. The iPhone succeeded wildly as a product everyone wants, and it stood out like a Purple Cow in the field of normal phones.

Tesla, Uber, Airbnb are all Purple Cows. As is Paypal. Banking is probably one of the hardest industry of all to try to disrupt, because the barriers to entry are huge – you need mountains of capital, regulatory approval, and years of building trust with your customers.

Banks’ business models are largely unchanged in hundreds of years, and they’re insanely powerful and almost impossible to displace – as we’re seeing with the Challenger Banks and Open Banking initiatives still to truly disrupt their business model – but for some crazy reason PayPal didn’t seem to care, and became remarkable.

Look at their Purple Cow attributes:

  • PayPal spends less money on technology than even a medium sized bank does. Yet its technology platform is far superior.
  • Consumers trust PayPal as much if not more than they trust their bank. Even though PayPal has been around for a fraction of the time.
  • When a customer buys with their PayPal account, the bank has no clue what the customer actually bought. The transaction appears on the bank statement as ‘PayPal’. That gives PayPal all the power when it comes to data mining.
  • PayPal is quicker to market with just about any kind of payment innovation going.
  • PayPal refuses to partner directly with banks – instead opting to partner with retailers directly.

In a small period of time, PayPal inserted itself as a whole new method of payment to become a real alternative to debit or credit cards. But how did it manage to do it? There are two huge pillars of success to PayPal’s story.

They seized the moment. They got a lucky break when they ‘accidentally’ became the favoured payment provider for eBay transactions. This was followed a few years later by their $1.5bn acquisition by eBay themselves. eBay were smart enough to leave them alone, and their newfound sense of boldness saw them strike a series of deals with other online retailers to try and replicate the success they’d had with eBay.

The second pillar of their success was Partnerships. Banks had always been wary about forming partnerships directly with retailers, instead they relied on their scheme partners Visa/MasterCard to do that for them. They didn’t want the hassle of managing so many different relationships, and were extremely confident about the fact that credit and debit cards would always be at the heart of the financial payment system.

But the problem was that MasterCard themselves were already working on a partnership with PayPal, leaving the banks out in the cold. Today, PayPal has 20% market share of online payments in the US, and 63% of the eWallet space. Almost all of that growth has come from their direct relationships with merchants large and small.

Paypal is a Purple Cow. Making something remarkable means asking new questions and trying new practices, doing the unexpected and creating an offering that is genuinely innovative. Godin identifies some key traits of Purple Cows, for example:

Get into the habit of doing the unsafe thing. Remarkable isn’t always about changing the biggest machine in your factory, it’s about being bold and every time you have the opportunity to see what’s working and what’s not. It’s safer to be risky. Use this mindset to go for the truly amazing moon-shot things.

Explore the limits with early adopters. What if you’re the cheapest, the fastest, the slowest, the hottest, the coldest, the easiest, the most efficient, the loudest, the most hated, the copycat, the outsider, the hardest, the oldest, the newest, or just the most? If there’s a limit, you must test it. The early adopters heavily influence the rest of the curve, so persuading them is worth far more than wasting time and effort trying to persuade anyone else.

Target a niche. The way you break through to the mainstream is to target a niche instead of a huge market. With a niche, you can segment off a chunk of the mainstream, and create an ideavirus so focused that it overwhelms that small slice of the market that really and truly will respond to what you offer. The market is small enough that a few wins can get you to the critical mass you need to create an ideavirus.

Think small. One vestige of the social media explosion is a need to think mass. If it doesn’t appeal to everyone, the thinking goes, it’s not worth it. No longer. Think of the smallest conceivable market and describe a product that overwhelms it with its remarkability. Be remarkable by being curated.

Differentiate your customers. From the above two points, find the market segment that wants your product and ‘own your market’. Within this, find the group that’s most likely to influence other customers – cater to the customers you would choose if you could choose your customers. Have the insight and guts to craft a Purple Cow product/service offering that gets the right people to seek them out.

Find things that are ‘just not done’ in your industry. And then go ahead and do them. Ask ‘Why not?’ – almost everything you do is the result of fear or inertia or a historical lack of someone asking, ‘Why?’ Uber and Airbnb did just that, and what about Tesla – who gave away their IP of their electric batteries.

If you’re remarkable, then it’s likely that some people won’t like you. That’s part of the definition of remarkable. The best the timid can hope for is to be unnoticed. Criticism comes to those who stand out.

Playing it safe. Following the rules. They seem like the best ways to avoid failure. Alas, that pattern is a dangerous and mistaken fallacy. In a crowded marketplace, fitting in is failing. In a busy marketplace, not standing out is the same as being invisible. Boring is always the riskiest strategy. Startups realise this and work to reduce the risk from the process. They know that sometimes it’s not going to work, but they accept the fact that that’s okay, as ultimately, chewing your own cud leads to being remarkable.

Understand the urgency of the situation. Half-measures simply won’t do. Being noticed is not the same as being remarkable. Running down the street naked will get you noticed, but it won’t accomplish much. It’s easy to pull off a stunt, but not useful. Extremism in the pursuit of remarkability is no sin. In fact, it’s practically a requirement. Remarkability lies in the edges. It doesn’t always matter which edge, more that you’re at (or beyond) the edge.

Part of what it takes to do something remarkable is to do something first and best. Roger Bannister was remarkable. The next guy, the guy who broke Bannister’s record wasn’t. He was just faster, but it didn’t matter.

Godin challenges us to be a Purple Cow, crafting something truly exceptional in everything we create or do. Like the Radiohead reaction to being hacked, like Tesla giving away their IP and PayPal did in challenging the status quo, be unexpected, be innovative, standout from the crowd, make people stop in their tracks and think. Be remarkable.

The myopic thinking of 110% effort

During a meeting I had last week, a bloke poured water into his glass and it overflowed slightly. Clumsy I said jokingly, to which he replied, Not really, I always give 110%. This is one of my utmost bugbears: You CANNOT give 110% effort, and this chap had used the phrase twice times already – before attempting to fill a glass 110% – trying to convince me he was going to be the next Elon Musk.

I call on the mathematically literate to join forces with me and together defeat the scourge of giving 110%. It’s a numeracy blight on the intelligence and lexicon of our country and it needs to be stopped. For non-pedants wondering why this phrasing that peppers sports vox pops and TV talent shows annoys me so much, maximum effort is 100% – 110% is beyond your capacity.

Even 101% means you are making an effort beyond your actual capacity. Some may argue it’s justified as you’re increasing your effort beyond what you thought was possible for you – you’re going the extra mile – yet that’s irrelevant as the percentage is a measure of maximum output.

You can only pour water into a glass to fill it 100%, and thus you spill 10% if you’ve given it 110%. The expectation to give or receive 110% would also mean it would have to be reasonable to expect many other things that fly in the face of logic and what is impossible according to the laws of physics. A day is 24 hours in duration so how could you expect it to magically become 26.5 hours long? Where is the 110% there? An idiomatic expression for going beyond, that’s all, but it’s meaningless.

I know this is a lot of numbers, but stick with me. I recall walking into the front room one Saturday afternoon and the dog was watching Sky Sports, when one footballer being interviewed promised to give 110% and later another promised 150%. Did this mean one was going to output more effort than the other? No, it means both of them were talking utter poppycock.

Maybe I’m too literal, maybe I’m too curmudgeonly, but you can only give 100%. I know the phrase is meant to embody the notion of doing more than what was thought to be possible, but to me it puts the emphasis on the wrong element. It’s not that you did more than you could, which is impossible, it’s that you had the wrong assumption about what was possible to begin with.

So I’m a founder member of the Quantitative Pedants 2019. Of course, percentages greater than 100 are possible, that’s how startups experience 200% growth in year-over-year revenue, to pick one example. It all depends on what your baseline is – x% of what?

Here’s actually a more serious (and more mathematically precise) way to look at this. Economist Stephen Shmanske produced a paper titled Dynamic Effort, Sustainability, Myopia, and 110% Effort that actually brings some stats and benchmarks to bear to figure this out in the right context.

For Shmanske, it’s all about defining what counts as 100% effort. Let’s say ‘100%’ is the maximum amount of effort that can be consistently sustained. With this benchmark, it’s obviously possible to give less than 100%, but it’s also possible to give more. All you have to do is put forth an effort that can only be sustained inconsistently, for short periods of time. In other words, you’re overclocking.

And in fact, based on the numbers, entrepreneurs pull >100% off relatively frequently, putting forth more effort in short bursts than they can keep up over a longer period. But in giving greater than 100%, this can reduce your ability to subsequently and consistently give 100%. You overdraw your account, and don’t have anything left. This seem like a rough-but-reasonable analysis of what athletes and other people mean when they use the ‘110%’ language.

Thus an elastic 100% does exist, but only temporarily, and at the cost of future performance – you borrow from the future in short-spurts of extraordinary effort. As well-renowned basketball coach John Wooden used to say to his players, if you don’t give 100% today you can’t make up for it tomorrow by giving 110%: your maximum effort is 100% of what you are capable of – period.

Every entrepreneur wishes there were more hours in a day to get their work done. These days, with all the new technology, many are convinced that multi-tasking is the answer. Yet there is more and more evidence that jumping tasks on every alert for a new email, text, or Skype call actually decreases overall productivity.

According to Rasmus Hougaard, the founder of the Potential Project, delivering mindfulness programs to Amex, Nike and Accenture, taking time for what matters, there are some basic rules that can help you manage your focus and awareness in work activities. Practicing these will ensure greater productivity, less stress, more job satisfaction, and an improved overall sense of well-being.

With mental health of entrepreneurs being given more attention, to balance the machismo of I work 24/7, this is highly relevant. Hougaard outlines eight mental strategies that every entrepreneur needs to cultivate, to keep the mind clearer and calmer, and increase your overall productivity.

Mentally be fully present and engaged in the current task Presence is foundational for focus and mindfulness, it means always paying full attention to the people around you, making a conscious decision to intentionally be more present.

Deliver rational responses rather than impulsive reactions This requires patience, and an ability to stay calm in the face of challenging situations. Patience is more concerned with larger goals, rather than temporary quick-fix solutions. Practice by stopping and taking a few breaths to calm down, before reacting.

Choose to always give honest and constructive responses It’s easy to give negative responses and find the downside in a proposal made to you. However, make a conscious decision to always find the positive aspects, even if it’s a proposal that isn’t for you and you can see lots of downsides. Practice positivity in every interaction with people.

Approach every situation with a beginner’s mind Without a beginner’s mind, what you have seen and done in the past, called habitual perception, can be problematic. It means you may not actually see today’s reality. Practice by overtly rejecting any habitual perceptions, and challenging yourself to be more curious in your day-to-day activities.

Refrain from extended fighting with problems you can’t solve Accept and realise that every problem can’t be solved, and frustration won’t resolve the issue. It will just make you less effective and less happy. Practice by choosing to move on, without carrying an inner battle.

Balance your focus between instant gratification and discomfort work Consciously identify the tasks that come easy to you, versus tougher tasks, and also a balance between short-term and long-term, that inevitably have different levels of satisfaction once completed. Practicing awareness of balance will lead to a change in your level of achievement and long-term avoidance.

Proactively seek moments of joy throughout your day Most of us are ‘always on’, always connected and always running, all day. The key here is to anticipate at least some activities you enjoy daily. Many people find this in just sitting still for a few minutes in quiet contemplation, maybe reading or going for a walk. Whatever it is, just switch off and find some personal quiet time.

Consciously let go of heavy thoughts and distractions Letting go is a simple but hard to do mental strategy to clear your mind and refocus on the task at hand. Let go of a problem stuck in your head means putting it to one side, and when you return, create the opportunity to refocus your thoughts.

Without these initiatives to balance your effort and get a clear focus, most people will find their ability to focus declining, yet still live with the rhetoric of 110% effort. We all face overload, increased pressure to move fast, and a highly distracted work reality. Our attention is continuously under siege, with more things and stuff to do causing distractions.

Pragmatic optimism is not fashionable, yet virtually any problem that can be articulated clearly enough can be solved without overthinking and overworking it to 100%+ effort. Being comfortable with uncertainty is perhaps the most important trait we can develop in ourselves as entrepreneurs, and not default to becoming overwhelmed.

Are there occasionally stressful moments? Sure, such is startup life. Is every day peachy? Of course not . But do your best so that on balance be calm , by choice, by practice. Be intentional about it. Make different decisions than the rest, don’t follow-the-lemming-off-the-cliff worst practices. Step aside and let them jump!

Chaos should not be the natural state at work. Anxiety isn’t a prerequisite for progress. Keep things simple, leave the poetry in what you make. When something becomes too polished, it loses its soul. It seems robotic.

Equally, chose fulfilment ahead of growth. Small is not just a stepping-stone. Small is a great destination itself. Build something of purpose, of intent. Growth can be a slow and steady climb. There is no hockey stick graph, simply looking inwards at the success you are achieving, it may be the time to accept no last minute rushes to ‘go the extra mile’ will make a difference long-term.

I am turned off by the super rapid growth companies. It’s not stable. Just look at oak trees. They grow slowly, but they have the kind of solid foundation to withstand storms and other disasters. You need a solid core, which is why I’m such a big fan of consistent and steady growth.

Periods of extraordinary effort borrow from the future. It just doesn’t work. Thomas Edison captured it well, with his words: Genius is 1% inspiration and 99% perspiration. Maximum effort is the minimum requirement for sure, but 100% is all there is to give and that’s that.

The problem isn’t that we have too little time – we all get the same amount of time each day and each week – it’s possible that we have too many things to do. Actually, the real problem is that we want to do too much in the time we have. We want more, and what we have is never enough. It’s this lack of being satisfied that is the real problem. If time flies when you’re having fun, it hits the afterburners when you don’t think you’re having enough.

We live in actions, thoughts, breaths and feelings, not in figures on a dial, yet it is the hands on the clock that dictate our attention. It’s being here now that’s important. Time is a very misleading thing. All there ever is, is the now.

What might have been is an abstraction, whilst time remaining is a perpetual possibility, but both exist only in a world of speculation. As T S Elliot said, Footfalls echo in the memory, down the passage which we did not take, towards the door we never opened.

So, let’s reflect again on the words of Annie Dillard: How we spend our days is how we spend our lives. What we do with this hour, and that one, is what we are doing. The most productive entrepreneurs think about what their time will be worth in the future, and focus on doing stuff today that is important for tomorrow. Think about it, all that really belongs to us is time in the moment – and that’s 100% of today, nothing more.

The failure of Jamie’s Italian shows Blitzscaling isn’t a growth strategy for every startup

My Oldham born wife is one of the finest cooks I know, and at the same time, one of the most vicious critics of celebrity TV chefs. Whilst she effortlessly makes two soft centred poached eggs on toast – such seductive delights are the basis of our thirty-five year relationship – she generously peppers criticism on any TV chef who appears to pay more attention to their own ego than the flakiness or their pastry or the creaminess of their stilton and celery soup.

Whilst James Martin is in her current good (cook) books, a regular target of her wrath is Jamie Oliver. His image as a slightly mouthy, salt-of-the-earth chap was always slightly at odds to her refined Northern palate, but apart from once paying a fortune for a mediocre meal at his Jamie’s Italian outlet in Manchester, I’ve taken little notice of him.

But last week in an era of millennials eating habits graduating from cheese on toast to avocado on rye, the failure of Jamie’s Italian restaurant chain is a perfect example of how not to scale a startup venture. Susan, it seems, really does know best.

The mass-market chain was founded by Oliver and his Italian mentor, chef Gennaro Contaldo, in Oxford in 2008. The chain rapidly expanded to 43 outlets by 2016. However, appetite waned as it faced rising competition from numerous Italian-inspired rivals and the market became crowded after private equity investors piled into casual dining chains.

Consumers became nervous amid the uncertainty of Brexit, while the rise of takeaway apps and delivery services such as Deliveroo and JustEat and high street food takeaway emporiums, and the emergence of home-eating kits such as Gusto and Hello Fresh, encouraged the Netflix generation to stay at home on the sofa.

Jamie’s Italian struggled for relevance as people changed their eating habits. It first showed signs of trouble in 2017 when it closed six outlets as its relatively expensive prices and unexciting menus failed to stand out from the crowd. The chain made a £30m loss that year and the chef pumped £13m of his own money to keep it afloat. January 2018 saw the closure of a further twelve outlets, and Oliver injected another £4m. Customers would buy his books and watch his shows, but choose to eat out in a rival restaurant.

Susan always said the end was nigh when he added chorizo to paella. But of course he’s not alone, other chains, such as Carluccio’s, Prezzo, Byron Burger and Gourmet Burger Kitchen, have closed many outlets.

The boom which increased the number of chain restaurants by a quarter since 2014 has come to an end. The latest sector analysis from Alix Partners, reports the number of restaurants in Britain fell by 2.8% in the year to March 2019, with 768 net closures over 12 months – that’s 15 per week – with five successive quarters of decline. Compare this to the heady days of 2013-18, when the restaurant sector expanded by 15%.

In the midst of the barrage of negativity, it’s easy to forget the positives – his 20 years in broadcasting, selling 40 million cookbooks that cajoled reluctant cooks to give it a go, campaigning on issues such as school dinners and energy drinks, and his charitable venture Fifteen Cookery schools, which helped the poor and underprivileged to become chefs.

But that was not enough to persuade diners to pay £4.50 for a garlic flatbread or £15.30 for a prawn linguine at Jamie’s Italian – the ingredients needed to make a celebrity chef aren’t those for a businessman. The restaurant business margins are notoriously slim and those who do well do so by either constantly evolving – anticipating rather than following trends – or delivering classic experiences with superb service and outstanding food.

Oliver did neither of these, his hubristic approach led to Jamie’s Italian expanding at a ferocious pace.. This for me shows why the populist Blitzscaling growth strategy for startups is fundamentally flawed.

Blitzscaling is an accelerated growth path, prioritising speed over efficiency to move a company from startup to scaleup at a furious pace to capture the market. Its advocates are Reid Hoffman, founder of LinkedIn and Chris Yeh.

Dropbox cofounder Drew Houston described the feeling produced by this kind of growth when he said, It’s like harpooning a whale. The good news is you’ve harpooned a whale. And the bad news is, you’ve harpooned a whale!

While blitzscaling may seem plausible, it is fraught with challenges and is just about as counterintuitive as it comes. The classic approach to growth strategy involves taking risks when you make decisions, but conventional wisdom says take calculated ones that you can both measure and afford. Implicitly, this technique prioritises efficiency over speed.

However, when you blitzscale, you deliberately make decisions and commit to them even though you’re very uncertain about the outcome. You accept the risk of making the wrong decision and willingly pay the cost of significant operating inefficiencies in exchange for the ability to move faster.

Historically, stories of breakneck growth involved either tech businesses, which offers nearly unlimited scalability in terms of distribution – for example Amazon – or software-enabled hardware, such as the Fitbit fitness tracker or Tesla electric car, whose software component allows the company to innovate on software timescales (days or weeks) rather than hardware timescales (years). Moreover, the speed and flexibility of software development allow companies to iterate and recover from the inevitable missteps of haste.

So, the failure of Jamie’s Italian looks to be a good example of why Blitzscaling doesn’t work. Here’s why I think this, against my own ten-step startup scaling growth plan.

1. Scale the personalised customer experience Every company needs to connect to customers as individuals, with highly personalised experiences. That’s why it is vial to make the most out of every customer interaction by transforming single moments into personalised customer journeys.

Oliver’s growth plan was classic blitzscaling, driving rapid expansion in pursuit of bums-on-seats to the detriment of the dining experience. Behind every social post is a customer.  They ignored the feedback from TripAdvisor local ratings, which always showed a poor dining experience.

2. Scale simplicity Oliver said he relies heavily on others to help with the day-to-day running of his businesses. Don’t forget that my day job’s making content for television and books. I can’t do everything.

The rapid growth in branches meant they were effectively franchises, and run very differently to the TV chef’s early restaurants. Blitzscaling means you quickly dilute the culture and personality of your startup venture.

3. Scale through validated learning How many moving parts in your startup do you need to scaleup? Maintain a learning mindset, be the best at getting better, recognise growth is never done. Maths and metrics don’t lie but they don’t tell us everything.

The expansion of the chain was intended to provide economies of scale and market share, but in fact market share fell. It’s one thing having a strategy, but when it’s obviously not working you ought to change it.

4. Scale the right mindset When your startup enters the scaleup stage, ensure you’re not just thinking about the numbers, you need to have the right mindset for your current phase of development, and ensure the people you’re working with are on the same page too.

Scaleups are especially vulnerable to mindset mistake when things are working well. Rather than developing their customer base organically, Jamie’s Italian tried tie-ins with voucher schemes, such as Groupon, which attracted fickle bargain hunters, and didn’t inspire loyalty or regular customers. The blitzscaling mindset is ‘growth’, not ‘experience’

5. Scale unit economics You need to reach a point where unit economics start making sense. A startup is a bet on a business model attaining the scale/critical mass beyond which the unit economics starts making sense.

Again the focus on blitzscaling isn’t efficiencies but simple raw growth. Reports about Jamie’s Italian raised questions about the location of new venues and the suitability of those he appointed to run and the way the business was run, hurting Oliver’s reputation in the process.

Blitzscaling means you lose sight of your purpose, your ‘why?’, and when the numbers don’t add up, you’ve no other options.

6. Scale transaction frequency The purpose of scaling is to build a sustainable, repeatable business model where customer attraction, acquisition, retention and traction build the revenue model, and brand builds transaction volume and value.

Research showed tourists and those who happened to be passing by became the key clientele, with very few people coming in because of excitement of being at a Jamie’s Italian. Again the focus was on growing numbers, not learning about customer habits. Blitzscaling doesn’t focus on the right growth metrics.

7. Scale thoughtfully Scaling means ensuring everything moves together. There is no shortcut leading a startup restaurant from one customer location to 50+, each function must mature, staying in line with equal attention to detail and support.

By avoiding the trap of ‘one-size fits all’, and smaller thinking, growth is considered and intelligent. For Jamie’s Italian, the feedback is glaring, as one critic review stated: firstly, the restaurants are far too big; due to pared-down staffing numbers, on busy evenings staff are waiting on as many as eleven tables at once, while managers and chefs also felt overburdened.

8. Scale things that don’t scale The early days are the perfect opportunity to do things that don’t scale, for example cultivating special, one-off menus. Keep doing this as you scale for as long as you can. Startups become Scaleups because founders make them take off.

Again Blitzscaling ignores the finesse, personalisation and remove the opportunity for localisation. Jamie’s Italian was just a faceless, soulless franchise vehicle that had no connection to Jamie’s personal passion, vision and focus on food. It was a business model.

9. Subtract as you add Scaling is all about more – adding employees, customers and processes. Often, this masks what you are losing and what you should lose. Scaling is actually a problem of less, there are lots of things that used to work that don’t work anymore, so you have to get rid of them.

You have to be aware of necessary subtractions even as you keep your eyes fixed on additions. The Blitzscaling model is ‘wash, rinse, repeat’, it may work for a global software application, but not in a competitive local market where experience is a key aspect of the customer purchase.

10. Scale Out. Think of scaling out as building the base of a pyramid, the foundation upon which everything else is built, and you know that it will hold. Most startups focus on building their architecture in an intelligent way that will allow you to grow to realise your potential, without over taxing your team or endangering your roadmap.

For me, this is the fatal flaw in Blitzscaling. It’s a bet. Blitzscaling combines the gut-wrenching uncertainty of startup growth with the potential for a much bigger, more consequential failure. It’s a do-or-die approach. A mass market roll out without a solid foundation gives you nothing to fall back on when the growth stalls.

The failure of Jamie’s Italian also shows the flaw in the financial model of Blitzscaling: unless you can finance your growth from an exponentially growing revenue stream, Blitzscaling means you’ll need investors with deep pockets, and you usually need more money than you thought, because you’ll need further funding to recover from the many mistakes you’re likely to make along the way.

At the beginning, there was so much promise. Oliver was the fresh-faced, down-to-earth culinary whizz with his charming, stripped-back style and no-nonsense approach. Then, just like me when I refuse to choose between cheesecake and chocolate mouse, his eyes became bigger than his belly.

His ambition and ego absorbed the Blitzscaling hype, and the metaphorical soufflé went flaccid. I bet he felt like I did recently when I burned the home made sausages, and Susan’s retort was simple: the whole plate looks like it should go straight into the bin and then the dishwasher.

Put customer innovation at the heart of your startup business model

Currently there’s an army of startups working on high impact and daring ideas. These ground-breaking ventures, with sweeping visions and big hairy audacious goals, operate under the influence of outsize creative thinking, and employ audacious strategies.

For a startup to survive, innovation is an imperative, developing a value proposition and business model to provide unique value to customers is the key. But choosing which innovative idea to pursue is often serendipity or a ‘light-bulb’ moment like Archimedes had relaxing in a bath before discovering his famous principle.

Let’s face it, business models are less durable than they used to be, they are subject to rapid displacement, disruption, and in extreme cases outright destruction.

Every industry is built around long-standing beliefs about how to connect with customers, value creation and to make profit. These governing, dominant beliefs reflect widely shared notions about customer preferences, the role of technology, regulation, cost drivers, and the basis of competition and differentiation.

They are often considered unshakeable, until someone comes along to rip them up them – for example, Philips Lighting: what if LED technology puts an end to the lighting industry as a replacement business?

In today’s digital world, companies don’t have to own the hard assets to provide that service – Uber up-ended the taxicab franchise model – yet owned no taxis or employed taxi drivers. Amazon Web Services shows you don’t need to own infrastructure yourself. Open Table is the world’s largest dining service and doesn’t own a single restaurant. Airbnb has the most ‘rooms’ for rent, but doesn’t own a hotel. Alibaba is the biggest retailer with no stock at all.

The examples are numerous and familiar, but what’s less familiar is how, new entrants achieve their disruptive power. What enables them to exploit unseen possibilities?

For market incumbents, this kind of innovation is notoriously hard, faced with current challenges and balance sheets they struggle to recognise possibilities or shrink from cannibalising existing profit streams. Some tinker and tweak, but the reality is innovation requires you to reframe your mindset, put aside the prevailing reality and underlying ‘rules of the game’ which requires bold, brave thinking.

Startups innovate by examining each core element of their business model, which typically comprises customer relationships, key activities, strategic resources, the cost structure and revenue streams. Within each of these elements, various business-model innovations are possible. Here are some examples.

Innovating in customer relationships: from loyalty to empowerment

Customer loyalty is seen as key business goal, but the pursuit of loyalty has become more complicated in the digital market. The cost of acquiring new customers has fallen, Customers, enabled by digital tools and extensive peer-reviewed knowledge now often self-select their buying options.

Innovative startups embrace the paradox that goes with this – the best way to retain customers is to set them free – pay-as-you-go and the Freemium model are attractive pricing strategies to gain early customer traction.

Innovating in activities: from efficient to intelligent

Here the focus is to spend less time on optimising processes and instead build flexibility and embedded intelligence directly into them to help improve the customer experience. In essence, digitisation is empowering businesses to go beyond efficiency, to create learning systems that work harder and smarter.

For example, consider a web-based hotel-booking platform. They are used to reframe the focus of the hotel business model from efficiency to user choice, marketing, self-selection and satisfaction, and opening new revenue opportunities.

We look for more than convenience, simplicity and speed, from the platform, and focus on content – the tone for the site’s text, photographs, additional information about the area, testimonials from happy customers etc. All seek to raise the click-through rate. There is also the AI learning aspect here too, tracking individual customers preferences and behaviours.

Innovating in resources: from ownership to access

Businesses use to compete by owning the assets that matter most to their strategy, and at scale, to be the best way to ensure reach and access for customers. Banks and Retail are the best examples of this. Now, as referred to above, digital technology increases transparency and reduces transaction costs, enabling new and better value-creating models of collaborative consumption.

As a result, ownership may become an inferior way to access key assets, increasingly replaced by flexible win-win commercial arrangements with partners, best shown by AirBnB. As with all the business model innovation highlighted here, putting the customer at the heart of the business model is the fundamental paradigm shift.

Innovating in costs: from low cost to no cost

What’s driving prices in digital models is the reframe that multiple customers can simultaneously use digital goods, which can be scaled and replicated at zero marginal cost.

Consider the implications for telecommunications, where the dominant belief has been that value is best captured through economies of scale – the more telephone minutes sold, the lower the unit cost.

Now the move is from texting and voice plans by focusing the economic model on making money from data usage and investment in data networks and storage capacity. We’ve seen tariffs split between handset and service supply, and a plethora of pricing menu options to suit the individual consumer.

We have the Freemium model backed up by bundling of products and services, where ‘free’ is an option and consumers pay for additional, premium services. This has been hugely disruptive.

Innovation is inherently risky and getting the most from innovation initiatives is more about managing risk than eliminating it. Since no one knows exactly where valuable innovations will emerge, and searching everywhere is impractical, startups must create some boundary conditions for the opportunity spaces they want to explore.

The process of identifying and bounding these spaces can run the gamut from intuitive visions of the future to carefully scrutinised strategic analyses. Thoughtfully prioritising these spaces also allows startups to assess whether they have enough investment behind their opportunities. Within this, one of the hardest things to figure out is when to kill something.

So let’s look at where you could introduce innovation in your startup business model.

Innovation in the Profit Model: How you make money Innovative profit models find a fresh way to reflect an understanding of what customers value and where new revenue or pricing opportunities might lie. Innovative profit models often challenge an industry’s established assumptions about what to charge or how to collect revenues. Apple’s iTunes is a great example of profit model innovation.

Innovation in Networks: How you connect with others to create value in the connected economy. Collaborative networks enable startups to leverage other companies’ brands, processes, offerings and channels through strategic partnering. This network innovation means firms can capitalise on their own strengths and share risk, while harnessing the capabilities and assets of others, develop new offers and ventures. Amazon is the best example of network innovation, which ensures its growth is driven by customer insight and intelligence gathered by network effects.

Innovation in Process: How you use processes to do your work differently Process innovations involve the activities and operations that produce a startup’s core offerings. This requires a fresh think around ‘business as usual’ that enables the company to provide a different customer engagement and cost model.

Process innovations often form the core competency of an enterprise, are sustainable and scale, and become the ‘special sauce’ that competitors simply can’t replicate. Amazon Prime shows the power of process innovation.

Innovation in Product Performance: How you develop distinguishing features and functionality Product Performance innovations address the value proposition – the features, benefits, impact, experience and evidence of a startup’s offering. This type of innovation involves both entirely new products and updates to existing products that add customer value. Too often, we mistake product performance for the sum of innovation.

It’s often the core of the competitive arena, but it devolves into an expensive arms race and mad dash to parity from competing firms in the market. The smartphone market is an example of this. Product performance innovation that delivers long-term sustainable competitive advantage are the exception rather than the rule – the Dyson, Tesla and Apple are great example of this, but they are the exception as product innovation in isolation is hard to sustain.

Innovation in Service: How you support and amplify the value of your offerings Service innovations ensure and enhance the utility, performance and value of an offering. They make a product easier to use and highlight features and functionality customers might otherwise overlook.

They also fix problems and smooth rough patches in the customer journey and bad customer experience in the current product. Done well, they elevate products into compelling experiences that customers come back for again and again. Uber’s application of technology is a great example of this, which fundamentally changed the taxi-passenger experience, yet still provided the identical core transportation offering.

Innovation in Channel: How you deliver your offerings to customers and users Channel innovations encompass all the ways you connect with your customers and users. While e-commerce has emerged as a dominant force, traditional channels such as physical stores are still important in creating immersive experiences.

Skilled innovators find multiple, complementary ways to bring their products and services to customers. Their goal is to ensure that users can buy what they want, when and how they want it, with minimal friction and maximum delight. Apple’s Genius Bar is a great Channel Innovation. After Dell had educated the PC buying market to buy online and direct, Apple reinvented the in-store experience and took it to another level, reinforcing the brand values and consumer experience.

Innovation in Customer Engagement: How you foster compelling interactions Customer Engagement innovations are all about understanding the deep-seated aspirations of customers and using those insights to develop meaningful connections between them and your company.

Great customer engagement innovations provide opportunities to foster customer loyalty and help people find ways to make parts of their lives more memorable. Airbnb executes this brilliantly, leveraging personalisation, automation, simplicity and intimacy.

For innovation, you need the mindset, determination and curiosity of an entrepreneur, and to be bold and brave. When we all think alike, nobody is thinking. Capital isn’t so important in business, neither is experience, you can get both these things, what is important is new ideas.

You need to see what everybody has seen and think what nobody has thought, and don’t live your life in the rear view mirror – it tells you where you’ve been, not where you can go looking forward. So work hard on reimagining and reengineering your startup business model, put customers at the centre of your thinking, and give your startup an unfair advantage.

Legs, hearts & minds: lessons for startups from sporting comebacks

Comebacks are possible. In fact, they happen all the time, but if you have had a major setback, it may seem dauntingly impossible. Life is full of stumbles, no matter who you are – financial problems, health issues, a relationship breakdown – they hit us all. The challenge is how you overcome a setback. How do you dig in and hit back?

It’s the same for a startup. Circumstances and events may have conspired to force you into a number of cul-de-sacs on product development, customers may have backed out of a deal, cashflow could be spiralling downwards, whilst recruiting new folks into your team may be proving troublesome.

Of course, we all love those great sporting comebacks when a team or individual looks down-and-out on the ropes, the scoreboard showing the game is over yet somehow they claw their way back to win with the odds stacked against them. And what a week we’ve had for this!

Spurs and Liverpool, both at some point 0-3 down on aggregate in their second leg Champions League matches, came back to win. The results weren’t tactical, they were just pure heart, it was just giving it everything to try and get to a Champions League final, and both achieved that with winning goals in the 79th and 96th minutes.

It was nothing short of extraordinary. Amid all the euphoria, with its capacity to surprise and conjure up barely conceivable storylines, sometimes football can be thrown back to the basics – legs – the physicality – hearts and minds – the winning mentality. ‘Legs, hearts and minds’ is the club motto of my team, Burnley FC, and it resonates with the passion on and off the pitch.

Beside the Liverpool and Spurs games in the last week, what’s your favourite sporting comeback? Many will cite the cricket in 1981, when Australia were on the verge of going 2-0 up against England in the Test series inside four days at Headingley. Then Ian Botham strode to the crease. His swashbuckling innings of 149 made the Aussies bat again and Bob Willis ripped through the tourists with 8-43 to seal a remarkable 18-run win. England became just the second team to win a Test after following-on.

Memorable and with global attention, but for me, a local rugby game is the greatest sporting comeback of all time I’ve witnessed, and helped shape my thinking on startup recovery lessons.

Rossendale RUFC are based in Rawtenstall, just up the road from the market, with a club house and pitches nestling in the scenic hillside, with stunning views looking down the valley to Manchester. On March 4, 2017 the Rossendale First XV staged a memorable fightback from a 0-28 points deficit against Kendal, to win a National League 3 North game.

Rossendale came from a seemingly irrecoverable position to earn a dramatic win. Curtis Strong crossed over the line in time added on to make the final score 31-28 and win the match after being 26-28 down in a frenetic stoppage time.

Rossendale started slowly to say the least, going in at half-time with a 0-21 deficit, and it seemed all hope was lost when Kendal scored their fourth try of the game shortly after the break. However, Fraser Lyndsay scored Rossendale’s first try and his first of two in the final half hour giving his side a ray of hope. Alex Isherwood, Nick Flynn and Curtis Strong added three more tries, as well as three out of five conversions from Steve Nutt, ensured victory was snatched from certain defeat.

At 0-28 down, generally speaking there’s no coming back. But the belief in the team and never say die attitude, once they scored, kick-started the most remarkable sporting comeback I’ve ever seen. It was an 18-man effort with the substitutes; there was no one player who made the win, it was all of them, together.

Comeback stories like this, and last week’s barnstorming performances from Liverpool and Spurs, are inspiring and cause us to believe there is hope for our own situation in the face of adversity. There are some impressive business comebacks in the past twenty years to take inspiration from too.

Look no further than Apple, which foundered in the late 1990s before Steve Jobs resurrected it to become the most valuable company in the world. In my estimation, Apple’s triumph is the number one business comeback of the last two decades.

Marvel, founded in 1939, is another great bounce-back story. As the home of Spider Man, Captain America, and other iconic characters, Marvel had long been the comic-book world’s biggest player. But in the mid-1990s the comics market crashed, Marvel went broke, and there was no superhero to stave off bankruptcy.

But after restructuring to focus on movies rather than paper and ink, today, Iron Man, the Avengers and X-Men are all billion-dollar franchises, and the company’s master plan to connect many of its characters in a single cinematic universe has turned it into one of pop culture’s most powerful brands.

Entrepreneurs choose the life of challenge and hardship, gambling for achievement, but also inevitably encountering times marked by confusion, chaos and disappointment seen by Apple. The entrepreneur consciously chooses a life in which they are likely to have higher highs and lower lows, in which the peaks and troughs are more vivid than if safer choices made.

Entrepreneurs jump on the roller coaster ride where the tracks haven’t yet been fully built. They’d have it no other way, happy going round blind corners and crazy inclines. A good part of it is fighting the urge to revert back to their comfort zone. Having to pick themselves up from setbacks, dust themselves off and go again, is an accepted part of the journey.

Ryan Holiday, in his book The Obstacle Is The Way, drawing lessons from philosophy and history, shows how to be prepared for knockbacks and be bold and mentally able to handle the pressure of running a startup. Here are some quotes from his book, which I think say a lot about building your mindset to make those stunning comebacks.

Where the head goes, the body follows. Perception precedes action. Right action follows the right perspective. When something happens, you decide what it means. Is it the end? Or the time for a new start? Is it the worst thing that has ever happened to you? Or is it just a setback? You have the decision to choose how you perceive every situation in life.

I can’t afford to panic. Some things make us emotional, but you have to practice to keep your emotions in check and balanced. In every situation, no matter how bad it is, keep calm and try to find a solution. Sometimes the best solution is walking away. Entrepreneurs find it hard to say no, but that can be the best solution at times.

No one is asking you to look at the world through rose-coloured glasses. See the world for what it is. Not what you want it to be or what it should be. Hey, we’re back to being realistic – but it’s also about optimism, the mindset to expect the best outcome from every situation – and that’s resilience to make it happen. This gives entrepreneurs the capacity to pivot from a failing tactic, and implement actions to increase comeback success.

If you want momentum, you’ll have to create it yourself by getting up and getting started. If you want anything from life, you have to start moving towards it. Only action will bring you closer. Start now, not tomorrow. Maintain active optimism, observing how others were successful in similar situations, and believing you can do the same. Equally, it’s not what happens to you, but how you react to it that matters.

It’s okay to be discouraged. It’s not okay to quit. Entrepreneurial life is competitive. When you think life is hard know that it’s supposed to be hard. If you get discouraged, try another angle until you succeed. Every attempt brings you one step closer. Don’t have a victim’s mindset. Learn that tenacity is self-sustaining. Great entrepreneurs become tenaciously defiant when told they cannot succeed. Then they get it done.

We must be willing to roll the dice and lose. Be prepared for none of it to work. We get disappointed too quickly. The main cause? We often expect things will turn out fine, we have too high expectations. No one can guarantee your success so why not expect to lose? You try with all your effort, it doesn’t work out, you accept it, and move on. Understand that any decision is usually better than no decision.

The path of least resistance is a terrible teacher. Don’t shy away from difficulty. Nurture yourself: gain strength from the unrealistic achievements of others. Surround yourself with high achievers. Avoid toxic people like the plague. To be remarkable, you have to expect unreasonable things of yourself.

Manager Jürgen Klopp puts the incredible Liverpool comeback down to ‘mentality of giants’, waves of red fury and reckless effort ending in joyous bedlam, an effort of will that, frankly, took the breath away. On a rapturous night Liverpool’s chasing narrowed the deficit, then burst into the most extravagant life as a 1-0 half-time lead against Barcelona became two, then three, then four.

In a startup, when you overcome one obstacle, another one waits in the shadows. Entrepreneurial life is a process of overcoming obstacles, one after the other. The obstacle becomes the way so you might as well enjoy it. For startups, there are many comeback lessons from the remarkable sporting and business turnarounds outlined above.

Hardship prepares ordinary people for an extraordinary effort. Standing over the precipice, the first step to getting somewhere different is to decide that you are not going to stay where you are, and go all in.

I liken it to pushing yourself to the ‘tremor of truth’ moment of giving your maximum in physical exercise when you push yourself to the edge. You grimace as a tremor of unease shoots through your body. Your arm muscles quiver during push-ups; your legs tremble with exhaustion running those yards.

Your brain says you can’t do it. But you get a second wind, persevere, and discover unknown mental and physical reserves. And just before giving up, you push through the challenge. ‘Tremor of truth’ builds muscles on the physical plane and a growth mindset on the psychological plane.

So look at the memorable turnarounds in sport last week in terms of resilience, mental toughness, self-belief and handling pressure in the moment. The path to entrepreneurial success is forged via breakthroughs, small steps and iterations, each possible because you have your eyes and ears wide open and you’re able to reflect and adjust time after time, with the resilient mindset to keep going.

Resilience is the virtue that enables entrepreneurs to move through hardship, set backs and achieve success. No one escapes heartache, uncertainty and disappointment, yet from these setbacks comes wisdom, if we have the virtue of resilience.

Many misunderstand what’s at work in comebacks. For me, it’s not about ‘bouncing back’, rather its about the ability to integrate harsh experiences into your entrepreneurial thinking, learn and apply the lessons, and then be motivated to go again, and expecting to go one better. The real glory is being knocked to your knees and then coming back stronger, legs, hearts and minds. That’s the essence of it.

Focus on the 20% that moves the needle of your startup

Vilfredo Pareto was a philosopher, economist and academic, fascinated by social and political statistics and trends. Legend has it that one day he noticed that 20% of the pea plants in his garden generated 80% of the healthy peapods.

He took this observation into a study about wealth and income, and discovered that 80% of the land in Italy was owned by 20% of the population. He investigated different industries and found that 80% of production typically came from just 20% of the companies, publishing his findings in a paper, Cours d’économie politique.

Sadly, Pareto didn’t live to see the general appreciation and wide adoption of his principle, and it was left to Joseph Juran to suggest The Pareto Principle or the 80/20 rule, the law of the vital few, that states that for many events, roughly 80% of the effects come from 20% of the causes – a small minority will have a disproportionate impact, generating a larger share of results.

Whilst there is nothing special about the number 80% mathematically, many natural phenomena have been shown empirically to exhibit such a distribution. Check it out yourself: I have 20 rooms in my house, but I spend about 80% of my time in four – the front room, kitchen, my study and bedroom (exactly 20%). On my iPhone, I have 30 different mobile apps pinned to the tiles, but 80% of the time I’m only using the six (20%).

When I socialise, 80% of my time is spent with the same 20% of my friends; 80% of the time I listen to 20% of the music on my iPod. In perfect accordance with the Pareto Law, 80% of the people reading this blog will gloss over it and be on their way, but 20% will stop, read, reflect and take action.

Pareto’s Principle also applies to the odds of success: your odds of winning go up to 80% when you achieve the 20% of the drivers that give you the most results. That is great odds. Intuitively, we know this to be true, but very few people understand how far this principle extends into business, and it’s especially useful when grafting in a startup.

So how can you apply Pareto’s Principle to focus on those things that matter in your startup life, and which will move the needle the most?

You’re faced with the constant challenge of limited resources. It’s not just your time you need to maximise, but your team’s capacity. Instead of trying to do the impossible, a Pareto approach is to truly understand which projects, actions and activities are the most important, the ‘Vital Few’ you need to focus upon.

The temptation is always to try the new and exciting. There’s nothing inherently wrong with that, but an 80/20 mindset helps you to stay focused on your North Star and execution, and spend less time chasing stuff which isn’t on the radar, which can be distracting and is often the cause of entrepreneurs losing their way.

The simple takeaway is this: stop beating your head against the wall on working harder and putting in longer hours. Most of what you’re spending time doing doesn’t matter, and that’s before we get onto the law of diminishing returns in terms of impact/effectiveness and hours worked.

Most startup founders I’ve discussed this with find it hard to accept this thinking, and the 80/20 can appear paradoxical. We are predicting the future not measuring the past, so our thinking is to do everything because we can’t really decide what is important. Often I see exhausted entrepreneurs walking around wearing burnout as a badge of startup life.

This needn’t be the reality. The opportunity cost of doing the 80% is not doing the 20% of what really matters. Once you focus on predicting the 20% instead of trying to get everything done, and always feeling you’re living on a hamster wheel and constantly behind, you’ll move forward faster. Doing more and working hours does not necessarily increase the likelihood that your startup will succeed. In fact, it may decrease it if it makes your thinking narrow and clouds your judgment. You may be too focused on breadth of work and not depth of work.

For example, if you persist in working equally across your entire product range then you miss the reality that perhaps 80% of customer traction derives from just 20% of the products. By discovering these statistics, your decision-making will clearly signpost where to direct your efforts. It’s a return-to-basics call that gives clarity.

Think of it this way: most of us work five days a week, but in four of those days we’re only creating 20% of what we do in the week; there’s a single day buried in there when we create 80% of our output for that week. What if we could track that day down and make the rest of the week more like that day? According to the Pareto Principle you can do just that, as:

·      80% of outputs come from 20% of the inputs.

·      80% of all consequences come from 20% of causes.

·      80% of your results come from 20% of your effort and time.

·      80% of your startup revenue comes from 20% of your products and customers.

Ask yourself ‘Which 20% of my current efforts are resulting in 80% of my desired outcomes and happiness? Which 20% of my current challenges are causing 80% of my problems and unhappiness?’ Workaholics don’t actually accomplish more than non-workaholics. They may claim to be perfectionists, but that just means they’re wasting time fixating on inconsequential details instead of moving on to the next important task.

So, here are some thoughts on how to apply the 80/20 thinking to your startup. There are three things to thing about from a business perspective, and three from a personal perspective.

Business 80/20

Focus on 20% of your target market It is possible to have a successful business that either focuses on a niche market or just a segment of an overall market. Your target isn’t the ‘market’, but identify a demographic and define your addressable market with precision to ensure you have discipline, clarity and focus on your customer development.

Work with your top 20% of customers Not all customers are created equal. Apply the 80/20 principle to time consumption: what 20% of people take up 80% of your time? Put high-maintenance, low-profit customers on autopilot, process orders but don’t pursue them or nurture them, and cultivate low-maintenance, high-profit customers. Respect your time – if you don’t, they won’t.

Get intimate with your top 20% of products Likelihood is that 80% of your new customers result from 20% of your products. Therefore identify which offerings generate most new customers, and then use the identified offerings more often (and use the less-effective offerings less often, or not at all).  Get intimate with your product data, and focus on the 20% that your customers want.

Personal 80/20

Hyperactivity vs. Productivity Being busy is not the same as being productive. Forget about the start-up overwork ethic that people wear as a badge of honour, you don’t scale! Get analytical and stay analytical, use 80/20 principles to stop putting out fires, duplicate your few strong areas instead of fixing all of your weaknesses. Calm, not chaos.

Step out of the drama Drama is a diversion that keeps us busy and not moving forward, it absorbs all our attention such that we leave important tasks ignored or at best incomplete, resulting in our failure to push our startup to its fullest.

Habitually, we create drama by dwelling in interminable thought loops, or continuing to participate in dead-end activities. We entangle our mind in a web of ultimately inconsequential details, clouding our long-range vision and side tracking our self-direction.

We additionally feed our self-perpetuating drama by projecting ourselves into a future of worst-case scenarios constructed from our assumptions. Being preoccupied by our drama makes it impossible to get centered, keep the focus on our real self, and use the Pareto 80/20 to give yourself discipline.

Use your third eye According to ancient wisdom, we all have a third eye, placed in the middle of our forehead. This third eye gives us perception beyond ordinary sight, the extension of what the mind knowingly is aware of. Use your spiritual third eye to look at yourself with a new perspective. Use it to focus on yourself and bring yourself in focus and responsible for your choices.

Everyone wears several hats in a startup, with overloaded schedules and too much to do, but getting stuff done does not have a linear relationship to doing the stuff that makes a difference. You already have all the time you’re going to get, and the law of diminishing returns applies – time is a bandit, and we often use extraordinary effort to keep things moving forward, but this is simply not sustainable. Management by crisis and fire fighting can become the norm, but are hugely unproductive and energy sapping. Urgency itself is not the problem.

The Pareto Principle enables a startup founder to work ‘on’ the business, not just ‘in’ the business, providing visibility for thinking time and space to focus on priorities, working to do the stuff that makes a difference. The reality is most of what we do doesn’t matter, so we need to change this and focus on the 20% that moves the needle.

Are there occasionally stressful moments? Sure, such is life. Is every day peachy? Of course not . But do your best so that on balance be calm, by choice, by practice. Be intentional about it. Make different decisions than the rest, don’t follow-the-lemming-off-the-cliff worst practices. Step aside and let them jump!

Chaos should not be the natural state at work. Anxiety isn’t a prerequisite for progress. Keep things simple and leave the poetry in what you make. Chose fulfilment ahead of growth. Small is not just a stepping-stone. Small is a great destination itself. Build something of purpose, of intent.

Growth can be a slow and steady climb. Curate rather than blitz. I am turned off by the testosterone fuelled super rapid growth companies, don’t let them set your bar, it’s how high you want to jump that matters. It’s not stable. Just look at oak trees. They grow slowly, but they have the kind of solid foundation to withstand storms. You need a solid core, which is why I’m an advocate of consistent and steady growth.

So do the 20% of your work that leads to 80% of your results. Prioritise the 20% of your network who provide 80% of your support and enjoyment. Fill your life with the 20% of experiences that provide 80% of your happiness. Use the 80/20 rule to pick out the imbalance of effects, maximise the small and powerful 20% and reduce the wasteful 80%. Go on, give it a go yourself.

Embed the innovation lessons of Silicon Valley into your startup

The dogmas of the quiet past are inadequate to the stormy present. The occasion is piled high with difficulty, and we must rise with the occasion. As our case is new, so we must think anew, and act anew.

Rousing words from President Abraham Lincoln, taken from his 1862 annual address to Congress. It’s a call to action which resonates with the current Brexit-driven economic uncertainty, causing a dip in investor confidence which will undoubtedly mean pulling back the innovation engine and startups, and replaced by a focus on short-term expediency.

However, research shows that focusing on short-term aspirations typically yields only short-term results, whilst those seeking significant startup breakthroughs will both identify the big ideas and generate incremental ideas along the way.

These are uncertain times, startups are struggling to find the right balance between caution and optimism. No one knows what will happen next, and it is crazy to operate your business as though you do. But the more volatile the times, the more essential it is to keep your options open. Thus, taking less risk (closing down innovation options) is actually more dangerous than investing to preserve a number of future-focused options.

A strong sense of the possible is essential to driving innovation. Whilst the image of the swashbuckling, risk-taking, buccaneering entrepreneur is somewhat of a caricature, positive energy and exuberance makes a refreshing change from the constant stream of maudlin and misery in the news at present. We are running a severe optimism deficit, and encouraging innovation maybe counter intuitive, but it’s what is needed at present.

There is never a lacking of confidence in Silicon Valley, the Santa Clara area in the southern San Francisco Bay Area, home to many of the world’s largest tech businesses. It’s the hub of the tech startup innovation eco-system, accounting for one-third of all of VC investment in the U.S.

It was in the Valley that the silicon-based integrated circuit, the microprocessor and the microcomputer, were first developed, spawning the philosophy that runs through the Valley’s past and present to ‘play’ with novel technology.

The phrase Silicon Valley is attributed to Don Hoefler who first used the term as the title of a series of articles in the trade newspaper Electronic News, on January 11, 1971. The moniker quickly gained widespread use in the early 1980s, with the introduction of the PC and related hardware and software products for the consumer market.

A powerful sense of regional solidarity accompanied the rise of Silicon Valley, building on the foundations from Stanford University. During the 1940s and 1950s, Frederick Terman, Stanford’s dean of engineering, encouraged faculty and graduates to start their own companies, as what would become Silicon Valley grew up around the Stanford campus. Terman, together with William Stockley, a founder of Bell Labs, are often called ‘the fathers of Silicon Valley’.

Terman and Stockley aimed to provide local employment opportunities for graduating students, promoting Stanford’s labs for use as an office park, named the Stanford Research Park. Leases were limited to high tech companies. Terman also found venture capital for technology start-ups.

One of the major success stories was Hewlett-Packard. Founded in Packard’s garage by Stanford graduates William Hewlett and David Packard, Hewlett-Packard moved its offices into the Stanford Research Park in 1953. Other early tenants included Eastman Kodal, General Electric and Lockheed.

Fast forward to 1975, and the Homebrew Computer Club was an informal group of electronic enthusiasts and technically minded hobbyists who gathered to trade parts, circuits and information supporting the DIY construction of computing devices. It was started by Gordon French and Fred Moore, who met at Menlo Park, where Thomas Edison had his labs – in the Valley.

They both were interested in maintaining an open forum for people to work together on making computers more accessible to everyone. The first meeting was held March 1975 at French’s garage. Steve Wozniak and Steve Jobs credit that first meeting with inspiring them to design the original Apple I computer. As a result, the first preview of the Apple I was given at the Homebrew Computer Club.

Today, there are many global tech innovators based in the Valley, let’s take a look at their innovation philosophy, and what we take take into our own startup endeavours.

Google set up in Silicon Valley at Menlo Park in January 1996 as a research project by Larry Page and Sergey Brin when they were both PhD students at Stanford. While conventional search engines ranked results by counting how many times the search terms appeared on the page, the two theorised about a better system that analysed the relationships between websites.

They called this new technology ‘Page Rank’, it determined a website’s relevance by the number of pages, and the importance of those pages, that linked back to the original site. That was their core, founding innovation. Since then, the growth and expansion has been fuelled by an underlying innovation philosophy, which includes the following focus:

1. Focus on the user, not the competition Product design decisions should always be made around solving customers’ problems, not by how much money it will make. Design a great useful user experience, and the revenue will follow. ‘Launch, then keep listening’ was Google’s early ethos, leading to iterative learning and development.

2. Think 10X If you come into work every day and improve your process a little each day, you only achieve incremental progress. If you want innovative change, you need to think about how to change things by 10X. Think bigger than what you think is possible. No matter how ambitious the plan, you have to roll up your sleeves and start somewhere, but then think big. A 10x goal forces you to rethink an idea entirely. It pushes you beyond existing models and forces you to totally reimagine how to approach it.

3. Bet on unique insights Google has unique insights because they see the world through a certain lens that no one else has. Don’t get stuck innovating your own existing products when you could have the next big idea, look across other domains for business model innovation.

4. 20% Time Give your employees 20% of their time to focus on the items they are most passionate about. When the ideas are shared around, people spend their 20% devoting their energies to the best ones, creating a self-governing and self-regulating environment. This truly allows everyone in the organisation the time to act on their innovative spirit.

5. Use the 70/20/10 model Google were firm believers in a concept introduced in the early days: the 70/20/10 model. Simply put, it means that:

70% of projects are dedicated to the core business
20% of projects are related to the core business
10% of projects are unrelated to the core business

They had a few goals in mind here. One is that this model is a helpful way to allocate resources as they thought about the big picture of the business each year. It held the focus on core needs while also encouraging a healthy stretch into new and related areas.

Just as importantly, the 70/20/10 model supports a culture of ‘yes’ rather than ‘no’. It promotes ‘what-if?’ thinking. This positive framework feeds the core business while also encouraging new ideas and big dreams that can become huge wins for the company – those 10x moonshots. In the long run, a few of those unrelated 10% ideas will turn into core businesses that become part of the 70%.

Just down the road from Google in Palo Alto, Elon Musk has the Tesla HQ. Musk invested heavily in Tesla, founded by Martin Eberhard and Marc Tarpenning. Tesla is a quixotic venture, a niche electric car company in a nation addicted to petrol. In 2010 it became the first American car company to float on the stock market since Ford in 1956, and his focus on renewable energy solutions kicked in.

Musk is an irrepressible Howard Hughes like figure, but his timeline reveals a whopping sixteen failures since 1995 on his journey to date. That’s nearly an obstacle every twenty months, at least one every other year epic failures, but he’s endured, so how did he keep he innovation ideology in Tesla in such a turbulent environment?

1. Never give up attitude One eminent trait of Musk is that no matter what the obstacle is, he never gives up. Musk is exceptionally self-driven, he displays outright determination to continue and keep moving forward through all disparities. Persistence is very important. You should not give up unless you are forced to give up.

2. Insane work ethic Musk is a hardcore workaholic person. He believes that there is no shortcut to success. He works for 100 hours a week and has been doing so for over many years. He once said, If other people are putting in 40 hours in a week, and you’re putting in 100, you will achieve in four months what it takes others a year to achieve.

3. Aim for the big picture Musk has targeted exceedingly challenging obstacles, ready to take big risks and has 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. 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. Musk’s enormous ambition to do what everyone says can’t be done means he’s always targeted disrupting systems instead of innovating incrementally.

4. Work on the ground level Musk possesses the ability to think at the system level of design. He knows exactly what he wants and sits with his team, he is the connection between the market demands and engineers’ interest. He believes he will know about the working of the product better if he gets his hands dirty by working with the engineers on the ground. He himself test-drives many of the changes to Tesla cars.

5. A ‘crystal clear’ massively transformative purpose Part of Musk’s ability to motivate his team to do great things is his crystal-clear ‘Massively Transformative Purpose’, which drives him. Musk’s MTP for Tesla is to accelerate the world’s transition to sustainable energy. Every product Tesla brings to market is focused on this vision and backed by a Master Plan Musk wrote over 10 years ago.

The ideology of Google and Tesla is 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 Google and Tesla have achieved. Both have the entrepreneurial spark that emphasises experimentation, rapid learning and constant improvement, they are Pacesetters guiding the field.

In a world where there’s an army of ‘Uber for X’ clones, startups working on high impact and daring ideas need to make their mark. Ground-breaking companies with sweeping visions and big hairy audacious goals operate under the influence of outsize creative thinking, and employ audacious strategies.

With new startups popping up practically every day, yours needs to be truly innovative, going beyond the basics of introducing a product, looking-to-the-horizon, fired up by disruptive thinking, yielding bold ideas to make something happen.

You need to see what everybody has seen and think what nobody has thought, and don’t live your life in the rear view mirror – it tells you where you’ve been, not where you can go looking forward. Taking on board some of the innovation learnings from Google and Tesla will help you get there.

Insights on negotiation strategy for startup founders from Brexit

The Brexit ‘in-out’ referendum promised and delivered by the then Prime Minister David Cameron on June 23 2016, has caused a huge political crisis, and divided the British people. He was dogged by the Eurosceptics in his party who wanted to cut the Gordian Knot of resistance to Britain’s EU membership once and for all, but Cameron’s referendum promise was folly based on no understanding whatsoever of the consequences.

Theresa May inherited this recklessness when she became Prime Minister following Cameron’s resignation after the referendum result.  The subsequent three years have offered insight and learnings on negotiation leadership, strategy and processes to reflect upon from a business perspective.

From the moment of her succession as Prime Minister onwards, May has had the opportunity and the duty to tell it like it was: to explain that the referendum had been based on false premises, that it over simplified the issue of exit; that no government could deliver a clean Brexit and, above all, that Britain would be worse off leaving the EU than staying in.

Instead, she eschewed the obvious reality. Her strident tones and attitude in setting down her ‘red lines’ at the outset were unilateral, likewise the Chequers proposal, containing provisions which would never get consent of the EU partners. Her repeated insistence that Britain could ‘take back control’ of its laws, borders, and finance free from EU interference, while gaining favourable economic relationship with the EU, was simply misguided optimism, or blind ignorance of the reality.

From the beginning, May completely misjudged the nature and complexity of the withdrawal process. She portrayed the discussions as a negotiation of equals, which it never has been, as the four freedoms – free movement of goods, services, capital, and people – are owned and operated by the collective of twenty-seven countries.

As a way of beginning negotiations, May has made sound bite political gestures and jingoistic statements, than laying down a clear, strong strategy. Trying to start the Brexit process to her own timetable, May was trying to pull a unilateral move stating that Britain, as the country initiating the Brexit process was the dominant party. However, the EU was clear on its realities and process, and has remained strikingly united throughout the Brexit process.

In reality, this sort of power play is rarely constructive. If you come into a negotiation acting competitively you are likely to jeopardise initial rapport and relationship building opportunities, which are essential. May also lacked a clear mandate, clarity in her goals, cohesive team and united support to play it so forcefully, and the disharmony from within the UK Government has been palpable to the EC.

The May deal is now off the table, MPs have seized control of the process, the deadline has been extended and we are no further forward. There is even talk of revoking Article 50 or another referendum, two and a half years after the initial vote. All this work may now be nugatory, so what can startup entrepreneurs learn from the Brexit shenanigans and the importance of conducting effective negotiations?

1. Establish your principles It’s vital that you have clear principles and philosophy on negotiating style, and are not simply gunning for your own agenda. For example,

  • Do not start with unilateral moves in an attempt to try and impress the other party with bravado. Trying to overawe the other side is a very risky strategy, it just gets their backs up.
  • Avoid focusing on personalities and personal ambitions and instead look to the task and issues at hand.
  • Enter a negotiation with a willingness to listen to the other side, build relationships and take people with you rather than force them to accept your demands and pacing.

The UK’s Brexit negotiating stance has so far been positional and assertive, mainly pursuing its own interests. It’s characterised by Theresa May’s statement that no deal is better than a bad deal. It signifies confrontation and aggression. This mindset assumes any deal that is acceptable to the EU will be bad for the UK, implying a combative, competitive situation and failing to look for trades that could deliver and expand a win-win.

In a business context, this isn’t the foundation for any meaningful collaborative dialogue.

2. Understand the context of the negotiation The negotiation of differing ideas does not take place in a vacuum, the context is woven from previous experience, competing agendas and immediate needs.

The UK made the decision to leave the EU, yet we seem to be embroiled around what the EU should be offering. In reality, the EU does not need to agree to any of our demands, which has absorbed the time of negotiations, and it is understandable that patience is wearing thin.

When you negotiate ideas, you don’t want to get so caught up in your own red lines that you frustrate the other party, and this is exactly what seems to have happened. We can all get overly attached to our favourite ideas, and relinquishing even a small part of the whole is a psychological challenge. But it’s a necessity where compromise and iteration are inevitable and indeed desirable.

In business, going into a situation with a fixed idea of what you want could result in total rejection. Prepare to adjust and co-create, and yours may still be the idea that wins out. Compromise often brings new insight and a different perspective on understanding each other’s position.

3. Set expectations and objectives Preparing both sides for the need to adjust their initial positions is a key tenet to any negotiation situation. It’s rare for an idea to come out of a discussion unchanged, so exploring the mutual aims of both sides will benefit the process and facilitate a way forward.

So in a business context:

  • Allow everyone time to air their opinions. Listen and ask questions to clarify positions and gain understanding of what’s influencing their thinking.
  • Open up individual issues for discussion. Go through discomfort, opening expressions of feeling and don’t rescue the conversation until it becomes stuck.
  • Identify the relative importance of different issues to guide the direction, and generate options where possible.

Today’s geopolitical world demands investment in relationships, both sides’ interests and concerns are too important to be unilaterally compromised.

Likewise, a competing approach is rarely productive within a business negotiation because agreement usually requires several people to work together over a period of time, now and in the future.

4. Create trust The best negotiations rely on the parties involved trusting one another. Britain was off to a bad start from the outset, because people leading the negotiation were not looked favourably upon by the EU. Boris Johnson was a particularly bad choice. The belief was that he would be tough and represent the seriousness of the leave position – but he lacked gravitas due to his flawed personality and outlandish statements.

Both sides in a negotiation want to make a good deal from their own perspective, but you have to trust the other side to actually do and mean what they say. Boris Johnson divides opinion and has said many memorable things that turned out to be false, some offensive, often simply hollow rhetoric or bravado, or extremely difficult to verify, or simply genuinely unhelpful. While this may have made some people chuckle, it undermines credibility, respect and trust.

Britain has also put forward a revolving door of lead negotiators in terms of the Secretary of State for exiting the European Union – a position held initially by David Davis, then Dominic Raab and now Stephen Barclay – further undermining consistency and familiarity. Contrast this to the EU, united behind the solid, sober and serious leadership of Michel Barnier, the Commission’s chief negotiator.

In business, it’s always about people – the respect, rapport and relationship. We would not enter a business arrangement with people we don’t trust.

5. Avoid negotiating under self-inflicted time pressure. Teresa May did not have a clear plan when she initiated Article 50. This gave Britain just two years to negotiate a deal with no starting framework.

Negotiating under a deadline is a recipe for poor decision-making. If you don’t give yourself time to construct a deal, consider your options, to develop trust, to understand the downsides, then don’t expect a favourable outcome.

May’s primary tactical error was to issue the Article 50 letter, activating the withdrawal process, in March 2017. She was under pressure to start the process and to get a move on, but the letter was sent too soon, because she had no formulated strategy or plan for Brexit. Once the letter was sent, the clock started the countdown to automatically leave on 29 March 2019, with or without a deal. The ticking clock put the EU in a very strong position.

In business, there is always benefit to continuing a commercial exchange and open dialogue with transparency, even when there isn’t full agreement, especially not working to an unrealistic, pressurised deadline.

6. Negotiation is a process, not an event Exiting a contract is a process in which the departing entity holds very few cards. So Brexit was always going to be an unequal dialogue, and our position was undermined from the outset as the Government was divided.

Throughout the talks, the UK has done little to earn goodwill, and it is hard to predict what the next stage of the rollercoaster will be. The best negotiating strategies are to act in a considered, open thinking manner, while continuing to develop a relationship and building agreement sensibly and on solid foundations, seeking consensus.

Had May and other politicians acted with a sense of reality, being honest with each other and the public, they should have recognised that for the EU Brexit was not a negotiation, rather a process for a member state to leave the organisation. Instead, May chose to convey messages rather than try to establish dialogues.

In business, we recognise negotiation is a process, and are prepared to ask for what we want, but then reciprocate. You have to be willing to make the ask for what you want. You have to be first to place value on yourself. You have to go in with your goal, and know where your fall back is going to be and what your alternative strategies might be – it is a process.

Brexit is turning out to be a tragic example of bad negotiation. It is complex and complicated for sure, but then so are many business negotiations. Nearly everyone has an opinion on Brexit, but no one can tell the future.

In my experience, no business situation would be so unanchored and lack direction, so volatile and so adrift after such a period of intense and prolonged discussion, such that it offers many lessons on how not to conduct a commercial business negotiation.

Networking tips for startups

Manchester’s tech startup community is bursting with events, meet-ups, workshops, hackathons and networking talks. Getting out there and connecting with like-minded folks is an essential activity for a startup, and building a great network is key to the success of any entrepreneur. Almost every breakfast, lunch and evening it seems is packed with invitations and opportunities to hang out at popular hubs and co-working spaces.

Don’t get me wrong, depending on your level of introversion, they can be a lot of fun, and you can meet some thought-provoking people and build vital connections. Then again, if you’re not careful, you can also spend most of the week chasing every single gathering of coffee and croissants, beer and pizza, using valuable time that you could and should be spending, you know, actually working on your startup.

Throughout it’s rich historic tapestry of disruption, growth and innovation, Manchester has seen many iconic meetings in the city, and this list is sure to give you inspiration for your next get-together in Manchester:

Charles Rolls & Henry Royce After Royce built a car in his factory in Cook Street, a meeting was set up with Rolls at the Midland Hotel in 1904. Rolls was impressed by the cars that Royce had made and agreed to take them, branding them ‘Rolls-Royce’. The combination of Rolls’ wealth and Royce’s engineering expertise spawned the creation of one of the most iconic car and engineering brands of all time, as Rolls-Royce Limited setup in 1906.

Marx & Engels It was in Manchester in the mid C19th that the Friedrich Engels and Karl Marx met to discuss revolution and the theory of communism. The desk and alcove where Marx and Engels worked and studied at Chetham’s Library in 1845 are still there today and remain unaltered. It truly was a meeting that shaped the world.

Graphene Fridays Professor Sir Andre Geim and Professor Sir Kostya Novoselov, at the University of Manchester, often held ‘Friday night experiments’ where they would try out experimental science. One Friday, the two scientists removed some flakes from a lump of bulk graphite with sticky tape and noticed that some flakes were thinner than others. By separating the graphite fragments they managed to create flakes, which were just one atom thick – and had successfully isolated graphene for the first time.

Women’s Social and Political Union A meeting at 62 Nelson Street, Manchester was the birthplace of the Suffragette movement, at the first meeting of the Women’s Social and Political Union. This historically significant building was the home of Emmeline Pankhurst and her family who led the Suffragette campaign and ‘Votes for Women’.

The Free Trade Hall, June 4, 1976 This was a gig that changed the face of Manchester culture forever, The Sex Pistols show defined music for generations to come. In the audience were future members Joy Divison (Ian Curtis, Bernard Sumner and Peter Hook), two founders of Factory Records (Martin Hannett and Tony Wilson), Mark E. Smith of The Fall, and one Steven Morrissey, who would form The Smiths.

Whilst we’d all give our right arm to be at meeting that would create such an impact to move our business forward, I can assure you that you simply do not need to attend 99% of the networking events you see cluttering your diary. In fact, many respected entrepreneurs built their businesses from the ground up without jumping at every networking event they came across in their city. They chose instead to focus on building their businesses and gaining their customers’ trust, before eventually earning the respect of those they want to meet and establish relationships with.

One example of entrepreneurs who focused on ensuring their startup had real market value before walking and talking about it were the Whats App co-founders, Brian Acton and Jan Koum. Steve Jobs also never spent his days attending a bunch of networking events. He and Steve Wozniak spent all their time building and improving their product.

These examples demonstrate that instead of jumping around to every event before you have any traction with your own business, build your startup and let networking organically follow. Yes, get out of the building, but do so to test your ideas and validate your learning.

I see many embryonic startup founders beating a trail to every event, almost addicted to going to and being seen or speaking at networking occasions. This creates false expectations that will eventually cause a detrimental emotional reaction. It’s often the smaller, quiet moments on your own in startup life that create the biggest impact, which is often overlooked.

So, here are some thoughts to help guide your networking strategy.

Network with a purpose Do not go to a networking meeting aimlessly. Have a purpose. Your goal is to meet people that you can help and people who can help you. You do not know who they are yet so you have to mix with a fair number to improve your chances. But you must have an overall goal. It helps other people to help you if they know what you are looking for.

The old saying, ‘It is not what you know; it is who you know’ is true, you can significantly increase your chances of success if you know or can get in touch with the right people. This is the power of networking, but it has to be focused. Frankly, I’m fed up of be asked to play in ‘name check entrepreneur bingo’ – do you know Mr X, or Mrs Y? What’s the point?

You must target networking events where you can determine that you’ll have a chance for real conversations. Too many of these events involve quick chats, exchange of details about each other’s’ businesses, and move on. How many have offered real follow-up value? Time is an essential ingredient in all startups, make it count. Rather than appealing to your emotions in a bid to sprout a friendship or simply getting your name out there, appeal instead to your self-interest. Otherwise, stay at home and work.

Research who you want to meet Before you attend an event, research the speakers and others entrepreneurs in attendance. Prioritise who you want to get to know, and craft a plan to make the most of the event. The goal of attending any networking event is to build quality relationships, this involves you approaching and talking to people who would add value to your thinking and your business. Knowing who to engage in a conversation largely requires a preset plan before you arrive.

Even better, people enjoy people via some exchange of value. When you try to impress with nothing to back it up, the relationship you thought you were building will fizzle away. What can you add to their thinking? The people we surround ourselves with at the outset of our venture are too important for us to be hasty or wasteful with our time and energy. They can determine a lot in our future, so be focused on the potential for making connections that could trigger both customer acquisition and growth opportunities.

Prepare your introduction Sounds obvious, but do you have a crafted and elegant introduction, as this is the best way to start the conversation. You don’t just go barging in and start talking about your startup being an investment opportunity, and don’t make it sound like an elevator pitch. Be polite and friendly, let them know who they’re talking to, make it personal, warm and interesting.

After a clam introduction, talk about something they’ve done that has amazed you when you learned or read about it. Doing this will make the person more open to you, knowing one of their products or services has had an impact. Show your curiosity, make yourself someone genuinely worth knowing.

Next, find something in common, that will start to create a deeper connection and build trust. Also, instead of just imposing your ideas and thoughts dominating the conversation, spend more time asking intelligent questions and listening to the replies than talking about yourself. Networking is about creating trust, being open, curious and helpful. Invest in the relationship first, don’t start selling.

It’s about storytelling rather than exchanging business cards. Your challenge is to build a human connection. That means you’re not doing all the talking, but encouraging an active exchange, a warm, insightful conversation that shows you sincerely are interested in how the other person thinks. It also means you pay attention to the answers. There is no value in a pocket of business cards at the end of the event if you haven’t made a genuine connection at a personal level.

The events where there is an opportunity for genuine peer-group learning and reflection are the most valuable. Don’t just go to events and listen to people talking about themselves. How will this take you forward? Being an active participant is vital, sharing some ‘in the moment thinking’ that can end up laying the groundwork for learning and a pivot in your product is a great outcome.

Be an able and active storyteller too, describing the social and cultural activity of your startup, sometimes with improvisation, theatrics, or humour. Every startup has its own story and narrative, which if shared in context, offer insight and in the best human tradition, create connections.

Circulate and know when to get out A key message for introverts who are uncomfortable with networking, or extraverts who get deep into a conversation quickly and dominate – don’t stay the whole time making comfortable small talk with the first group you meet. After a while make a polite excuse and move around the room spending say ten to fifteen minutes with each new person. You will find that you can leave conversations without being brusque. Networking means circulating and people at the meeting are aware of this.

Your time is better spent, and a much better connection made, when you linger with those where you’ve sparked good give-and-take. Get out gracefully, when you feel you’ve been cornered by someone who isn’t a good match.

Follow Up You’ve invested time in getting to the event, the days immediately after making a new connection, give them a call and re-introduce yourself. If you don’t follow up, where is the return on your investment? This is the chance to meet for a more purposeful one-to-one conversation. It is important to stick to the three-day follow up rule, as any time longer than that may diminish the relationship established at the event.

Some sort of follow-up is important, though this will depend on the quality of the connection – the extent to which you really ‘click’ personally and professionally. What’s important to remember is that the best relationships are mutually beneficial, so the first meeting is just that, you have to nurture the connection: the more you put into it, the more will come back to you.

Attending every networking event ultimately robs you of the time you could have spent building your startup and understanding your customers. You become part of the ‘celebratory startup circuit’ where you have to see and be seen. Whilst you can get inspiration from hearing about the journey of others, it’s actually perspiration – your own – that will ultimately move your business forward.

Realistic expectations are only part of doing networking right. It’s also important to understand that doing it right takes time. Focus on quality and forging respect, trust and rapport, not ‘contacts’, or being able to say ‘I was there’ at an event.

However, don’t keep score, it’s not about the ‘who and how many’, rather connect with people because there is value, and nurture the relationships that will truly help propel you towards accomplishing great things. Ultimately, focus on having in-depth conversations with fewer people about subjects relevant to your growth.

I’ve met so many who have opened doors for me and remained in my life both personally and professionally. After a while, networking doesn’t feel like ‘networking.’ It’s both serendipitous and unpredictable, and something that just naturally becomes part of your work life and your personal life.