"Conviction is a belief you hold... and it holds you."
Bobby Allison
Entrepreneurial titans envision dominating an
industry. Walt Disney, Howard Schultz, Bill Gates, both Watsons, Coco
Channel, Bill France, Sam Walton, and Henry Ford didn't just rise to
dominate their industry - they created or unalterably changed their
industries. Each suffered disappointment as fellow pioneers couldn't or
wouldn't share their vision. Each struggled for years against enormous
financial odds. Each remained steadfast, carefully putting in place one
block after another until everyone could finally see their castle in the
sky. Each endeavor eventually reached critical mass, exploding onto the
world scene with all the appearance of an overnight success christened
by luck. Each industrialist achieved their vision through audacity,
perseverance, and uncommon skill. None understood the enmity or envy of
those who declined to take the trip with them.
What each of these
entrepreneurs had in mind was something larger and grander than anyone
had previously imagined. They didn't want to merely win; they wanted to
elevate the game to a whole new level. The world is filled with
dreamers, but these people had a quality that went beyond dreaming: They
had the ego, skill, and determination to make their dreams a reality
for the rest of us.
Entrepreneurial Titans, independent of their
business, display a surprising consistency in character. We call these
characteristics the Ten Traits of Entrepreneurial Titans. As you examine
these extraordinary people, the similarities become striking. The
titans love what they do, constantly imagine taking their empires to a
higher elevation, communicate clearly, approach their business with a
marketing perspective, continuously improve their products and services,
stay in constant contact with every aspect of their business, think
strategically and act opportunistically, relentlessly pursue their
goals, take whatever risks are necessary, and surround themselves with
exceptionally talented people.
Since few of us will ever try to
reach their level of accomplishment, how valuable is it to study these
traits? Success in any endeavor requires the same attributes. It is not a
difference in kind, only in hue. The titans single-handedly change our
lives, but our economy is moved along more by the cumulative effect of
thousands of smaller successes. Understanding-and emulating-the traits
of the titans will help you dominate your small corner of the world.
The Ten Traits of Entrepreneurial Titans
1. Love of Aspiration
2. Uncommon and Unwavering Vision
3. Skilled Communicators
4. Market Focused
5. Product Obsessed
6. Always Engaged
7. Strategic, Tactical, Opportunistic
8. Driven and Tenacious
9. Risks Takers
10. Collectors of Bright and Talented People
1. LOVE OF ASPIRATION
Bill
France Sr. (NASCAR) started racing in high school, Steven Spielberg
operated a film camera for years before he was eligible to apply for a
drivers license, Bill Gates wrote his first program prior to the
invention of personal computers, Charles Barkley practiced jumping over a
backyard fence in junior high school, Walt Disney doodled as a doughboy
in World War I, and Warren Buffet bought his first stock at age eleven.
These examples became icons in stock car racing, film, computers,
basketball, family entertainment, and investing.
We could list
many more examples of people who started honing their skills extremely
young. An early start, however, has less to do with their success than
you might expect. The real secret is that they stayed with a profession
that claimed their heart, mind, and spirit. Entrepreneurial titans get
people excited about their vision. This is hard to accomplish if you're
not excited yourself. Think about it-all these people got rich doing
what they liked best in the world. They didn't go to work in the
morning; they went to play at their favorite pastime.
Jealous
people like to portray entrepreneurial titans as unhappy and obsessed.
This may be only half true. Obsessed people are happy only when they're
engaged in their obsession. By this measure, entrepreneurial titans are a
happy lot. The breed may be happy, but they are never satisfied despite
their accumulated accomplishments. Titans always feel compelled to
climb the next peak-one shrouded to everyone else by a misty haze.
Now
look at your own professional life. Are you excited when you wake and
disappointed when the day is done. If not, then ask yourself why you
originally chose your profession. Most of us found our jobs exciting
when everything was fresh. If you've gone stale, you need to find a way
to rekindle your enthusiasm. On the other hand, if you became trapped by
expediency, you may need to consider starting over. If you want to
emulate the titans, you must enjoy your work. We all have a secret
aspiration. If you have to drag yourself into work, then take your
secret aspiration out of the recesses of your mind and find a way to
make money doing what you love. No matter what it is-if you get
creative-you can have more fun and make more money.
2. UNCOMMON AND UNWAVERING VISION
Entrepreneurial
titans see things differently than the rest of us. Bill France and Walt
Disney believed that if they respectively built Daytona Speedway and
Disneyland, people would storm into their parks. Henry Ford saw the
automobile as a ordinary family appliance, not as a toy for the
well-to-do. When computers were the size of a small house, Bill Gates
foresaw a computer on every desktop. Coco Channel visualized simplicity
as elegance and style. Ted Turner perceived a ready audience for 24 hour
a day news. Entrepreneurial titans possess vision beyond the
commonplace and never waver from their view of the possible.
Their
vision tends to remain constant, but they continually elevate their
sights to a higher plane. Despite all his accomplishments, Walt Disney
never finished making his dreams come true. He pushed sound into
cartoons, made the first full-length animated movie against everyone's
advice, and built an amusement park that defied every convention of the
entertainment industry. Toward the end of his life, he left the confines
of fantasy with Epcot Center, intent on showing people how to build an
entire city. If Disney had lived long enough, perhaps he would have
reengineered the world.
Everyone has a passion. The trick is to
visualize how to take your passion to a new or enlarged market. Despite
the internet being around for decades, it took web browsers to make it
easy for everyone to traverse the information superhighway. The human
body always needed fuel, but Ray Kroc made fast food part of our
culture. Automotive tires remained static for years until the radial
came along to reenergize the industry. Thomas Jefferson, and the other
founding fathers, even visualized redesigning government for the new
world.
Entrepreneurial titans are not smarter than other people;
they merely spend more time thinking about how to change the dynamics of
their passion. They're individuals who consciously look at things from
different angles until they get a unique perspective. Although some
people seem to have a natural knack for visualization, this skill can be
further developed in anyone. It just takes practice. Take your passion
and question everything about it. Sooner-but probably later-you'll come
up with a twist or completely new concept that can propel your passion
into a livelihood.
3. SKILLED COMMUNICATORS
Unless you're an
artist or writer, it's unlikely you can single-handedly make your
vision come to life. When you need resources or skills beyond your
personal capability, you must convincingly communicate your vision to
others. People can't follow you unless they know where you're going.
Entrepreneurs communicate their vision and sell all the time. They sell
their vision, their ideas, their organizations, their products, and
themselves.
Characteristics of Good Communication
1) Clear and simple,
2) repetitive,
3) illustrative.
Entrepreneurial titans explain their ideas
and concepts until the uninitiated understand, they repeat their message
at every opportunity, and they use illustrative examples. Their intent
is to paint a picture in people's minds-a picture that people can see
and strive toward. The description is generally short, always clear, and
frequently presented as an allegory or metaphor. When Bill Gates first
started running around talking to everyone about a computer on every
desktop, computers for individuals were the province of introverted
hobbyists. Entrepreneurial titans may not hit on the best description
immediately, but they keep experimenting until they find the right words
and expressions to get the world to endorse their ideas-or at least
enough of the world to build their dream.
4. MARKET FOCUSED
Entrepreneurial
titans don't build edifices merely to massage their egos- they also
want the public to come in droves. These are not private dreams. To
attract customers, they think about their business from a marketing
perspective. They target a specific market segment, brand their product,
ceaselessly promote their wares, and use value pricing that baffles
their competitors.
Market Focused Titans
1. Target a Specific Market Segment
2. Brand Products
3. Promote Relentlessly
4. Price for Value
Market Segmentation
Entrepreneurial
titans study the marketplace until they find a segment they can
dominate-then they focus on this segment until they own it. Walt Disney
stridently kept his enterprise focused on family entertainment. Howard
Schultz restricted the amount of food sold in Starbucks. Bill France
never ventured away from racing stockcars. McDonalds never branched into
fine dining. Coco Channel never endorsed a Sears line of clothing.
Penske stayed focused on transportation.
You seldom see a
scatter-gun approach from one of the entrepreneurial titans. They
constantly enlarge their customer base, but generally they accomplish
this objective by extending the boundaries of their existing market.
Branding
Penske
does not own race teams and blaze his name all over his products just
because he wants people to see his name. He understands the value of
branding a product. IBM, in its heyday, became so closely associated
with computers that the computer in the movie 2001 was named HAL, which
is IBM lowered by one letter in the alphabet. The Golden Arches are
synonymous with McDonalds. Ted Turner made CNN into a worldwide
recognized brand. Despite lots of other entries, Steve Jobs got the
world to view IPod as the only branded entry in the personal music
market.
Branding requires more than advertising and promotion. An
irrevocable law of the marketplace is that products must always be
consistent with the branded image. Imagine if Apple introduced a new
product with a clunky design. The product would not only flop, it would
shock and disappoint Apple enthusiasts-so much that it would probably
erode the market share of other Apple products. Imagine if Gucci came
out with products priced for the middle class. Oh wait, they did, and
Gucci is still struggling to regain the brand cachet.
Coco Channel
insisted that her designs could be identified on sight. When you went
to a Disney movie-at least when Walt was alive-you knew exactly what to
expect. Ray Kroc dictated that every McDonalds restaurant anywhere in
the world serve food to the exact same specifications. Auto Zone
operates over 1500 stores that look identical. Entrepreneurial titans
find a formula, brand it into the consciousness of the world, and then
strive to never harm their brand by misusing it.
Promote Products and Organization
Walt
Disney insisted that every part of his entertainment enterprise promote
every other part. The park promoted the movies, the films were used to
leverage the television program, and television promoted everything in
Walt's kingdom. You can see the same philosophy demonstrated in Penske
Enterprises, France's multiple endeavors, and Bill Gates software
strategy. Once momentum is established in one area, it is used to launch
product extensions or to support weaker areas. Entrepreneurial titans
sell and promote relentlessly.
Pricing
Walmart and Nordstrom
use different pricing models which correspond with their chosen market.
They both leverage their size, local market conditions, and customer
preferences to stock merchandise that represent a value to their
customers. Each department store appeals to a different economic
segment, but both chains have established pricing policies to insure
that customers feel like they got more for their money than if they
drove down the street to another store. Rendering value in exchange for
the customer's hard earned cash generates ever-increasing sales.
Entrepreneurial
titans exhibit an ever-present concern over pricing and value. Despite
the expense of Coco Channel's fashions, she made sure her customers felt
like they received a timeless design for their patronage. Henry Ford's
entire business was predicated on a new pricing model. Microsoft
consistently uses pricing as a competitive weapon. NASCAR allows each
track to independently negotiate their own television contract so
pricing stays consistent with the market appeal of a specific race. If
you aspire to emulate the entrepreneurial titans, you need to personally
involve yourself in pricing decisions so you can insure that you
maintain your customer base and they are so pleased with your value
equation that they help you lure new customers into the fold.
5. PRODUCT OBSESSED
Entrepreneurial
titans are distinguished by an obsession with their products or
services. Beyond enthusiastically extolling their products to everyone
within earshot, they involve themselves in every aspect of the product
life cycle. They love what they do and they love the products that come
from their passion. Entrepreneurial titans crave growth, and growth
requires producing something people want to buy. People who build
empires shun cost cutting, cash cow strategies because they find running
in place boring-and unacceptable. They don't chase after money, they
chase after empire, and money just follows.
Entrepreneurial titans
are characteristically innovators, not inventors. Inventors tend to be
inwardly focused with analytical minds, while the titans' vision comes
from being hyper-alert to the peopled world around them. Although titans
may not be inventive, they see markets for new technology that the
inventor never anticipated. They view products from the consumer's
perspective, constantly thinking up new ways to increase buyer appeal.
They change the scale of their products, innovate around the edges,
force new market segmentation, discover new applications for existing
technology, and rejuvenate mature products with new designs and
packaging.
Entrepreneurial titans constantly search for
ever-improving products. Disney's clean and tidy park, McDonalds'
exacting specifications for fries, Microsoft's relentless product
improvement, Walmart's use of computers, CNN's compulsion to be first in
news worldwide, and NASCAR's fan-friendly image all represent examples
of the titan's pursuit of exemplary products and services. The customer
is never to be disappointed.
6. ALWAYS ENGAGED
Entrepreneurial
titans stay engaged in every aspect of their business. Genuine titans
never put their companies on cruise control. In return, the titans
receive unflagging loyalty from their customer. From product
development, pricing, packaging, staffing, brick and mortar, strategy,
publicity, financing, and myriad other details, the titans tend to hold
tight reins. This doesn't mean they don't delegate, but they tend to
restrict subordinates' freedom until they demonstrate a consistent
application of the titan's vision.
Today, most people speak
reverently of Walt Disney, but a few ol' timers criticize his
omnipresent enforcement of his personal vision. Bill Gates is notorious
for digging into the intricate details of Microsoft's products. Henry
Ford intimately involved himself in both product design and production
processes. Bill France Sr. shared a fetish with Walt Disney for a neat
and tidy park.
Many titans invent shortcuts to keep a watchful eye
on everything. Disney required his animators to post their work outside
their offices. Then in the evening, after they went home, he would
wander around sticking colored-coded pins in work he either liked or
felt needed further development.
Entrepreneurial titans possess a
vision that is larger than they can deliver on their own. They must
employ people, so the titans spend the majority of their time tuning
other people's work so it stays consistent with their vision. Walt
Disney described his management style as being like a bee, flitting from
point to point pollinating ideas. People with a vision of their own
tend to learn the ropes from the titans, then move on to a venue where
they have more personal freedom of expression. Entrepreneurial titans
run entrepreneurial schools, where graduates frequently build related
businesses in close proximity to their mentors. In the long run,
however, entrepreneurs do not work for entrepreneurs.
7. STRATEGIC, TACTICAL, AND OPPORTUNISTIC
Entrepreneurial
titans think strategically. Their strategy tends to remain consistent
over a long period-frequently for their entire life. They know exactly
where they want to go and chart a course to get there. Because their
vision doesn't waver, their strategy can remain relatively constant. No
annual strategic planning exercises for them, the vision and strategy
are so imbued within their entire organization that they concentrate on
tactical plans.
The titans adjust their tactics depending on
competition, finances, the economy, and industry trends. Bill Gates
originally underestimated the importance of Internet technology, but
quickly redirected resources when his mistake became obvious. Despite
the reallocation of resources, his strategy of desktop dominance never
wavered. In fact, his strategic imperative of controlling the desktop
accelerated his awareness that a threat existed from another technology.
Once refocused, Microsoft used the same business strategy to vanquish
competitors in the browser wars. That is the advantage of a consistent,
well-thought-out strategy, the whole organization can change directions
in lock-step without detailed instructions.
The titans are
uniformly strategic and tactical, but their real secret is an ingrained
ability to seize opportunity. A strategic consistency educates everyone
in the organization so that when an unexpected opportunity arises,
people recognize and leverage it immediately. Entrepreneurial titans
understand that a clear vision and consistent strategy enable
opportunism.
8. DRIVEN AND TENACIOUS
Titans approach life
with a single-mindedness that scares mere mortals. These highly
goal-oriented people feel compelled to take their dream to the next
level and make it a reality. To accomplish any huge undertaking requires
endurance, tenacity and a strong force of will and will to achieve far
outweighs any other talent or asset. These are driven people.
We
may not share the strength of their compulsion, but we all understand
that our smaller dreams also require a concerted and sustained effort.
The lesson here is that if you don't really want it bad enough, luck
will seldom present it as a gift. You need to get out there and earn it
the ol' fashioned way. Henry Ford once said, "Nobody is proud of what
they intend to do."
9. RISK TAKERS
What separates dreamers
from doers is a willingness to take enormous risks. The titans always
retain supreme confidence in their vision, so even when they're unsure
about their abilities, this faith gives them the confidence to
repeatedly risk their accomplishments-to-date to reach for the next
plateau. Once you become content to ride your previous accomplishments,
growth stops, and entrepreneurial titans never stop. Nothing comes free,
and continued success requires assuming ever-increasing risk.
In
1988, General Motors wanted to rid itself of moribund Detroit Diesel.
Solomon Brothers couldn't find a buyer for an engine supplier that could
claim only a 3% market share. Desperate, GM finally cut a deal with
Roger Penske for $35 million. Penske quickly reversed the downward
spiral, cut costs, introduced new products, and established strategic
relationships with his other operations. By 1991, market share had
increased to 26%, sales doubled, and the number of hours-per-engine
dropped from 72 to 13. Penske sold 25% of Detroit Diesel to the public
in 1993 for $95 million, $60 million more than he paid for the entire
company. How did he do it? Penske says, "We took more risks."
An
ability to realistically appraise the potential reward against the
required risk separates the foolish from the astute businessperson. Bill
Gates worked in partnership with IBM until he calculated that the
potential rewards of going on alone compensated for the risk. Disney
felt comfortable with his repeated bet-your-company ventures because he
had a longer time horizon than his bankers. The titans take risks-but
their multi-dimensional thinking finds an edge that the more
conventional overlook.
10. COLLECT BRIGHT AND TALENTED PEOPLE
Talent
does not intimidate true leaders. They know they need highly capable
people with many different skills to build their dream. The
entrepreneurial titans recognize talent in an eye blink and immediately
pull these people into their organization. Smarter, more capable, and
experienced people give the titans a distinct advantage over their
average competitors.
NASCAR racing is a pure meritocracy.
Competition weeds out mediocre drivers, crew chiefs, pit and garage
mechanics, spotters, and general managers. People in racing carry this
competitive, merit philosophy into their business ventures-it's the
biggest single reason why so many racers succeed in business. Talk to a
racer about business and you'll soon discover that they employ the best
talent they can find, whether it's their own staff or professional
services. Racing has conditioned them to search for the best in any
field and pay commensurate with ability and dedication.
Microsoft
has been criticized for its policy of annually dismissing people whose
performance puts them in the bottom ten percent. Since Microsoft's
average skill level exceeds the industry, a low performing Microsoftie
probably would be a high performer in another company. Gates objective
is not to punish the bottom ten percent, but to make sure that Microsoft
doesn't get complacent and allow performance to drop closer to their
competition.
As you examine your staff, continuously work to raise
the average performance level. You can do this by making sure every new
hire exceeds the capability of your average performer. If you want to
build something great, you need a continuous upward spiral in
organizational performance.
PRACTICE THE TRAITS
Detractors
of the enormously successful often portray these same ten traits as
obsessive, dogmatic, glib, monopolistic, hypercritical, tyrannical,
lucky, stubborn, foolish, and as weak players who exploit the skills of
others. Taken to an extreme, this characterization might hold some
validity. But we are not talking about Al Capone or Adolf Hitler.
Entrepreneurial titans play by the rules. True, they continuously test
the perimeter, and may even venture a little over the line to probe the
limits, but the people we discussed in this chapter are competitive
creatures who want to win accolades as victors in a hard fought, honest
game. If you want to do something monumental, you cannot go about it the
same way as everyone else.
Review these ten traits and ask
yourself which ones you need to practice to hone your own skills. To
emulate the giants of industry, you need to break from the herd, commit
yourself to bringing your best to work every morning, and think
creatively. Dream big, challenge existing norms, investigate new
methods, leverage technology, and use existing channels to deliver
something fresh and useful. But stay in bounds.
