The sounds of silence - means you have space to listen

I was recently with a group of start up businesses; this small group of founders was excitedly debating the best way to promote their businesses using social media. Each was bemoaning that they were not getting much traction on their twitter and Facebook page… and one was asking me if it was ‘worthwhile’ to start a blog.

Here’s the thing: Only blog, tweet and FaceBook if you have something worth saying that might be of interest and value to someone else. They are not promotional tools they are listening tools…

It is the same inside your business – as leaders we don’t have all the answers – sometimes we are just so much better off to not say anything. I was recently in a planning meeting and because I am the founder of RedBalloon and have been hanging around for 11 years – I found that if I spoke in the planning meeting then a disproportional amount of attention may have been attached to my thoughts.

As a leader my job was to listen, both inside and outside the business.

Silence works.

The Australian winner of the Veuve Clicquot Business Woman Award 2012, Maryanne Shearer

It was great to be on my feet last week, a busy week of International Womens Day events – sharing the RedBalloon journey and the things we have learned.

A highlight was attending this years Veuve Clicquot Business Woman of the Year event. A massive congratulation to Maryanne Shearer, founder of T2 as this years winner.  I have always enjoyed the experience of entering one of her stores and discovering new tastes and delights.

In addition the final touches are coming together of the new book, and we are on the countdown for hosting a mentoring weekend in April.

This week:

Monday – Speakers dinner at Hamilton Island (I will get to have a catch up with Verne Harnish).
Tuesday – Keynote for Nixon Advantage at the annual conference of 400 accountants
Wednesday – Travel to Sunshine Coast
Thursday – Speaking at IGA conference on ‘Small things Big impact.’
Friday – Sydney – Negotiations Skills Course
Saturday – Presentation at Dial an Angel conference (by then I might well need their services)

As I began to write this post I received a good overview from Business Spectator on it’s thoughts on the large retailers and the online space.

The thing that I find concerning about Mr Harvey’s approach to online – is simply his inconsistency. I would be worried if I worked in his online team, that is at some point I might simply become a rounding error and find that I did not have a job.

Smart Company has already given Mr Harvey three pieces of advice on how he can improve his online performance. Namely: emphasize deals, reduce shipping time and redesign the site – all good ideas.

I see something else that is very much missing. It is leadership and vision. Gerry Harvey was revolutionary 30 years ago when he invented the store within a store franchise retailing model. One could argue he was a visionary and showed amazing leadership – and he has consistently executed the same model in many other retail brands. So why does he lack the same level of commitment to the online space?

Perhaps Gerry expects online to be predictable. This is never the case – no business is. The greatest ideas are not necessarily the one’s that fly. The Internet is a complete leveler… a tiny business can sit side by side with a massive retailer and get the same traffic. [Eleven years ago when we launched RedBalloon in the ninemsn shopping portal – we sat side by side with David Jones]

Not unlike traditional retail one needs an online reputation – and it takes years to cultivate a deep and consistent search engine presence.

Underlying all of this I would argue that it is about focus. Kogan has been absolutely single minded about his proposition – as have each of the deal sites. And they have listened very carefully to their customers ensuring that they have the right product, at the right place, at the right price.

A reality check please… I understand that revenues for the Harvey Norman Group in 2011 were $7,76 billion – did he really believe that for this NEW online business he could realistically achieve an income of $388m in the first year – that is apparently what 5% of his earnings would be.

Well Gerry has had a reality check – but for the rest of us out here in the online world we are growing our businesses steadfastly, with consistency, vision and leadership – through trial and error, listening to our customers and responding. Perhaps if he went back to the basics, if he remembered what it took to build his first store he might get the results he wants… in time.

L to R - Michael Fertik, Jeff Taylor, Russell Simmons, Karen Beattie, Martha Stewart, Muhammad Yunnis, George Clooney

On Monday I had the fortune of participating in the Growth Faculties Leadership Summit. Six leaders, with different styles and methods took to the stage to share what they had learned about leadership.

Martha Stewart at 70, gave an energetic and passionate insight into her life and the creation of her personal brand. She did speak of how her role now is about rebuilding the business after the decline following her incarceration. Though she believes that her brand remains what it was. (I understand that in the US not all would agree with her).

Her story is engaging and fascinating and there was much to learn.

Martha said:
“Without an open mind you can’t be a great success”
“I’m fundamentally curious”
“If you write a book you become an ‘expert’”
“Never ever talk down to the customer & we need to be where our customers need and want us to be”
“Everyone needs to believe in what they are doing.”

She started her career as a model, then moved into stock broking, before starting her catering business. There is no doubt that this is a woman who has been completely driven since her childhood and at 70 she is equally driven. The question I was left with is “Does she define her success in dollars – or in the contribution to others, I was unclear on this.”

Muhammad Yunnis

How different the next speaker was… Muhammad Yunis, Nobel peace prize winner (who I had seen in September). He shared with the group the notion of Social Business – a new business model. Businesses that are created solely to solve a problem. Not to provide dividends – but also not a charity or not for profit.

Muhammad said:
“I asked myself the question can I make myself useful for other human beings?”
“I try to solve problems by creating a social business”
“It is easy to undermine the value of others if you are disconnected.”
“Crisis is in the conceptual construct in the theory of economics.”
“Most business is based on selfishness – and this is not sustainable as we are now seeing with the economic crisis’s.”
“Charity dollars only have one life as it goes out, it does not come back – social business dollars go around to be self funding.”
“Human creativity is endless but often we cannot see.”
“You can change the world if you can solve the tiny problems that then get replicated.”

Then we had the father of hip hop speak, Russell Simmons, who discovered the music and poetry of the streets back in 1972 – and it took him years to bring that culture to light, in music, film, clothes and TV. He too has influenced culture – it has been altered forever. Here is a man that is consumed by his passion for art, expression and poetry. He believes that you cannot create greatness with a commercial outcome in mind. Commercial outcome will come when greatness is created.

Russell said:
“Some people say keep your eye on the prize – but I don’t agree. If you keep looking at the prize you are likely to bump into things along the way.”
“Most industries are blind to new things coming.”
“I aspire to a post racial America – we are a long way from that – and Hollywood is really blind, it is not inclusive.”
“I believe that people will see what is cool in each other – this is aspirational.”
“My passion gave me a different life, I found a way to express myself – most of those I grew up with are either dead or in jail – every person needs to find their purpose.”
“If you want a long career then you need to make sure that your life’s work is the expression of what you really are – not what you think people think they want you to be.”
“No matter how rich you are you can only sit at one seat at a time.”
“Wealth comes from making your work meaningful – it is a state of consciousness.”
“Business often starts from a pure vision of creative expression this often gets lost. Come back to it.”
“I believe in economic justice in the US – a bigger conversation must take place about equality.”

George Clooney

Then we had actor George Clooney speak about his work in Sudan.

[It is interesting to note that for this session the organizers had sold seats just for this speaker – so the numbers in the audience swelled to double – so we have a nobel peace prize winner with a lifetime of changing the world – but who people want to see and hear from is the celebrity. This paradox was not lost on George Clooney.]

George said:
“I now have the ability to use my celebrity to shine the light on areas that only have darkness – I can bring these issues to the world.”
“When people try to discredit your intentions – simply know more than they do about the issue.”
“You have to be involved – see it, feel it, be there, understand, know the facts, the people.”
“It is easier to be in advocacy than politics – you don’t have to compromise and you can stay truly focused on the issue.”
“Success I understand to be just for a mere moment in time. – That moment I need to use to turn it into something worthwhile.”
“I don’t take myself seriously – but I do take my work seriously.”
“The role of the leader is to say ‘Put down your pencils and hand in your work.’ – to know when to bring the plan together.”
“Leaders need a clear voice that says ‘This is what we are going to do.’ As well as robust diplomacy, individual belief and an understanding of the power of shared voice.’”=

Jeff Taylor founder of monster.com took to the stage to admit that Australia was the only place where he had failed in creating his job board business. However he did succeed in 50 countries with 6000 employees. Jeff gave his view on why each person needs to be his or her own CEO. That is ‘you are the CEO of your own life’ and he shared his ‘FAME’ concept.

Jeff said:
“F:  Create a workplace where people can be a Free agent”
“A: Train like an Athlete, ready to play the game of your life.”
“M: Prepare like a Marketer, know your key message.
“E: Engage like an entrepreneur.”

The final speaker for the day was Michael Fertik speaking on reputation. As a marketer of course I have understood always that as individuals and as a business the only thing we really have is our reputation. Michael shared with us how volatile social media has made reputation – and that we have no control.

72% of employers apparently look at social media as part of their recruitment strategy – and 49% have changed their intentions of employing an individual based on what they learned.

Face recognition software will mean that we have no privacy and that anywhere anytime our image can be ‘tainted’. This is true for companies and individuals – and bad stories whether true or not hang around online forever.

What a special day… A day of learning, being in the presence of greatness, inspiration and debate. I was most fortunate to attend a dinner with 60 others at the Shangri La with the speakers. This is where I had the chance to ask the questions that I had wanted to during the day.

Well-done Growth Faculty for putting together such an event…

Kofman’s basic premise is two fold: Firstly that great leader’s take responsibility for their actions, as well as how they choose to react to any situation that presents itself.

Secondly, a clear sense of purpose is critical to successful leadership. A leader cannot buy commitment (as I have said on many times– “no amount of money will keep people happy long term if you don’t capture their hearts and minds.”, and “discretionary effort something people choose to give, it is not something you can ask for”)– which means that it is up to the leader to inspire people to ‘the noble cause.’

“If a leader demonstrates that his purpose is noble, that the work will enable people to connect with something large – more permanent than their material existence – people will give the best of themselves to the enterprise” Mihaly Csikszentmihalyi

Clearly the actions we take as a leader speak very loudly to those around us.

My father told me as a child “Do as a say not as I do.” Which he said tongue-in-cheek, but I always a bit confused by this – my mother would say “people will judge you by the jobs you don’t like doing – not the ones you do”… As great people said:

“What you do speaks so loud that I cannot hear what you say.” Emerson

“We must be the change we want to see in the world.” Gandhi

Simply ‘Actions speak louder than words’ which both my parents drilled into me.

As leaders what we ‘do’ moment by moment creates the culture around us. I cannot expect people to arrive on time for a meeting if I do not do so myself. I must pitch in a lead by example if we are in need of extra support in answering customer emails. Quite simply our actions set the tone – and the values.

“As the leadership team goes so goes the rest of the organization”. So the question remains do you operate from a clear sense of purpose and do you take responsibility?

Too often people blame the circumstance or someone else – because somehow we find it difficult to fess up to ‘I stuffed up’.  For example, the traffic did not make me late – I didn’t leave early enough. So often we find excuses to justify our own behavior.

How would it be different if you said to yourself –  ‘Anything that effects me is my problem and I am part of the problem’

• Consider: “You are the pilot to your own life.”
• Consider: “What is your businesses noble purpose?”

How would you explain to your child your company’s purpose in a way that makes you proud? (and maybe this applies to parenting too)

Ernst & Young 2011 National Entrepreneur of the Year winners

Last week was about as big as they get. In addition to the three awards received by RedBalloon last week, I was also a judge in the National Telstra Business Womens awards. Actually weeks don’t get much bigger than last week.

What started as a normal week of one on one’s and coaching with some of the newer team members in Sydney… ended up quite differently.

On Wednesday I did one of our less known experiences – which is the art walking tour of Melbourne… Bernie, our host only ever has upto eight people and she loves enlightening us on the journey from street art and emerging to commercial galleries.

Street Art in the lane's of Melbourne

In our four-hour tour she even squeezed in a trip to a working artist’s studio so we could learn how he is developing his works for an exhibition in May. We finished with a drink at a fantastic little bar on the roof top of an unknown Bourke street location. I grew up in Melbourne, this tour was a wonderful way to experience the uniqueness of this wonderful art city via its little lanes and backstreets. Apparently every time Bernie does the tour she changes its format (so I will definitely do it again).

Thursday was an all day event as a judge of the Telstra Business Womens awards. I had loved reading all the submissions of the finalists for the innovation category – the diversity and outcome of innovation is remarkable: from home renovation to street swags for the homeless;  volunteer travel to dressing women for work; the most amazing librarian transforming what a library is in Mt Gambier; and revolutionary practices in emergency care in Canberra’s largest hospital. The ultimate winner for innovation was Prof. Veena Sahajwalla for her invention of using waste products in the steel making process. This ‘green’ steel is now implemented by OneSteel and another manufacturer in Thailand – and others will follow.  And yes, it is her name on the patent.

Telstra Business Women's Awards 2011 National Nokia Business Innovation Award winner - Professor Veena Sahajwalla

All awe inspiring women – as were all the other categories. The sheer diversity of the stories and their achievements was exciting, exhilarating and engaging. The overall winner is Catherine Burn, Assistant Commissioner Corporate Services for NSW Police. (Five of the six awards went to women from NSW – a fine achievement.)

After a day of judging I was straight off to the Ernst & Young awards at Shed 14 in Docklands – and another amazing night with four of the six awards going to NSW entrepreneurs, as mentioned in last week’s post.

The Telstra Business Womens Awards were held the next night, also at Shed 14 and very funnily I was seated at almost the same table as the night before. I felt so privileged to be a part of both of these amazing events… a really big thanks to Ernst & Young for hosting such an event. And Telstra for its event. It takes amazing commitment in tough times to keep such programs going with such absolute dedication. And well done to Commonwealth Bank for being a part of both awards…what a great way to connect with customers at such events.

The weekend I spent with with my teenagers painting pictures (indoors because of the raining weather). What an wonderful way to finish the week – with a paint brush in my hand, getting ready to paint the next great phase at RedBalloon.

This week:

Monday: Interview with Marty Wilson for his new book
Tuesday: Business Round Table
Wednesday: Speaking engagement for the Assoc of Tertiary Management
Thursday & Friday: Writing Writing Writing (this book will appear one day)

A very proud winner of the National Award in the Industry Category

RedBalloon has had a wonderful week of celebration by winning three prestigious awards. Whilst there are many businesses far larger than us, doing amazing things – it is such an honor to be on the same stage as those businesses. Could small be the new big? What could large businesses learn from us about absolute commitment to the employee experience – and as a result the customer experience. How wonderful to be recognized in this way.

Last night I had the privileged of being part of the Ernst Young Entrepreneur of the Year program. A spectacular night surrounded by passionate, persistent people who have a tolerance for risk said our MC Peter Burner.

Congratulations to Michael Malone from iiNet who won the title of Australian Entrepreneur of the Year 2011. (For more about the event and the other winners).

Peter Burner interviewed each of the winners as we took to the stage to accept our awards. I had reflected before arriving at the event about my entrepreneurial journey to date. I was there on behalf of many many people.

This is what I had planned to say:

Thank you to those people who:

Loved me, you made me believe in myself
Cared, you made me feel worthwhile
Shared their wisdom, you inspired me to learn
Laughed, you made my world fun
Listened, you made me feel loved
Challenged me, you made me play a bigger game
Said ‘no’ – you made me more determined.
Disliked me, you made me stronger

Thank you

Megan Bromley accepting the AHRI HR Practioner of the Year award

In addition, I congratulate the team on making the Deloitte Tech Fast 50 again – And a big amazing congratulations to Megan Bromley – Employee Experience Manager, RedBalloon for being named by AHRI as the HR Practitioner of the year…WOW!

It made me wonder “what do I miss out on because I am often not ‘present’ as I focus on what my iPhone presents to me. Perhaps it is pretty lonely being a cab driver now – if customers no longer ‘havachat’.

When a plane touches down – many simultaneous ‘ding dings’ chime out demanding the attention of their owner. Most business people seem completely addicted to their phones.

I friend of mine recently lamented that he had been unreachable because he was in an all day meeting – and the response when he did come ‘back to the grid’ was – is something wrong with your phone. People seem to have a high expectation that if they send a message the response will be instantaneous.

I note that I was off air for two days this week – no email, phone, sms or internet. And whilst I had quite a back log of emails and messages on my return– I was highly efficient at getting back to people because I was completely focused on that task in that hour.

Is all this ‘immediate’ communication really giving us the opportunity to do good work? How many emails or text messages are dashed off in haste only to be misunderstood or incomplete?

As the taxi went passed the bus stop I notice that most of the people waiting were all inspecting their mobile phones – not even noticing the existence of the other human beings around them.

In all this urgency to connect – are we not ‘seeing’ those around us?. People who provide us services or who are part of our community.

Last week I was asked by one of the judges in the EY awards – how do you juggle all the different responsibilities that you have – my answer to this question (and it is question that I get often) is be truly ‘present’ – turn off your mobile phone and be with whoever you are with… does this same courtesy extend to those beyond business colleagues, family and friends.

Okay I am taking a personal challenge for the next 21 days to not use a mobile device in the presence of others. And I wonder who I will get to meet and what conversations I will get to experience – and also the added upside of not sending off a one line response to someone with out a considered response…

Let me slow things down – and not rush to everything, and I’m sure I will do better work as a result.

Want to play.

Jack Cowen - Founder and Exec Chairman of Competitive Foods

Jack Cowen started his presentation at the EY Entrepreneurs workshop with a quote “An entrepreneur needs to be a cross between a microbiologist and an astronomer.” He believes that true entrepreneurs are special in that they can be both detailed and visionary.

He was a judge in the EY Global Entrepreneur of the year program in Monte Carlo for 2010. It was a delight to have him in the room sharing his insights – not just from his own amazing entrepreneurial journey – but also from the many business founders he has met along the way.

He made the following observation: Those businesses that own the technology or the system, ie they have a level of exclusivity gain great advantage. They have the magic of what people will pay for and it makes it difficult for competitors to invade that space. If a business cannot own the technology (or systems and processes) then it must own the brand.

Jack reflected following the EY event that in his opinion the six traits of great entrepreneurs are:

1. We have a fundamental curiosity – we want to explore things.
2. We are persistent beyond reason
3. We search for better ways to do things – we agitate for change
4. We are endlessly positive in every part of our lives
5. We are focused and able to run lean and mean
6. We have exemplary people skills – we understand leverage and that we cannot do it on our own.

Photoshoot last week for Public Accountant and good friend Roger Montgomery 'dropped in'

Cup Day is close, which means Christmas is upon us in a retail sense… this will be my eleventh Christmas at RedBalloon. And we are looking to recruit a Customer Experience manager to support with this very hectic time at RedBalloon (so if you know anyone please introduce them to us). Otherwise you might well get me on the phones – which would be fun … in fact maybe I could do that… but we need someone to manage me…

Last week flashed by with meetings, dinners and preparation for the judging of the national EY Entrepreneur of the Year awards… and a photo shoot for Public Accountant magazine.

This week

Monday: Meeting with Ernst Young Partners
Tuesday: Speaking engagement at the America Club Sydney, judging for the Drake Ultimate Job awards, and preparation for Dream Employers webinar
Wednesday: Ernst Young women’s master class and finalists dinner
Thursday: EY master class, speaking engagement for IBM, EY national judging event
Friday: Keynote for IGT in Geelong.