Wednesday, April 22, 2009

The Acorn and Divine Intention

An acorn will always become an oak tree. It will never grow into a tulip, a WhatABurger, or anything else. There is an inescapable destiny evident in nature, which we'll label Divine Intention.

An unavoidable aspect of Divine Intention is that it cannot be completely known in advance. Look at any number of acorns. You'll never find a tiny oak tree inside. The oak tree "emerges" out of the acorn and a fertile environment.

With or without a religious background, this sense of Divine Intention can be felt. How do we learn to co-operate with it? To carry the metaphor further, our efforts cannot be focused on planning to be a tree. At any point in time we're an acorn without a clear picture of what an oak might be. Our focus has to be on finding the fertile environment where we can grow into our Divine Intention.

The conventional word for environment in business is "market." Active Investors are obsessed with their markets. They are concerned more about them than anything else. Free time isn't spent on process improvement, that's allocated time. It's spent imagining how roots can grow deeper into the environment. There is a simple trust that our "oak" will happen if we can just develop the roots.

This is the primary drive of the successful business owner or professional. There's nothing wrong with a primary passion for your craft instead; however, that's an employee, not an Active Investor.

Tuesday, April 14, 2009

Folding a piece of paper


Paper Folded Eight Times
Originally uploaded by Curis
Imagine having an infinitely flexible piece of paper. Now fold it in half. It's twice as thick. Folding that in half doubles the thickness again. If this was done forty more times, how high would the paper become? Think of your answer before reading any more. This is a favorite introductory exercise to the explanation of growth in System Dynamics that was a subject of The Active Investor's  first posting.

When I started, I was wondering how long it would take before a brand new blog (and blog author) would start to get feedback. Last week I was speaking with a leading DFW area commercial risk specialist, Javier Hernandez, and as we parted he mentioned enjoying his reading of The Active Investor. Feedback was first felt in week 9.

Why is this small comment such a big deal? Let's get back to paper folding to imagine the power of feedback cycles. How thick did you estimate the folded paper would become? If we assume the typical thickness of paper to be about 0.1mm, then after 42 folds the paper would be 440,ooo kilometers high. This would be higher than from here to the moon.

Of course, we just can't image that. Creating anything with feedback opens a door to incredible growth potential. While feedback is easily apparent with internet activities, it's the engine of all "word of mouth" marketing Active Investors seek. Our business plans and actions are best judged in the light of their potential feedback (there is both good and bad). Then as we begin to sense positive feedback, we can take heart that we're on the right track - possibly from here to the moon.

Sunday, April 12, 2009

Getting to "what's next"

There's always a "next thing' in life. Change is so persistent we sometimes just ignore it or allow ourselves to become overwhelmed by it. Change is also where we find a great need for outside help. It's wonderful to find a mentor we can trust who has been through the change we're facing many times before.

Many professionals fit into this mentor category. As business brokers, we mentor individuals whose "next thing" is to have their own business, or a different business, or perhaps a long sought retirement. In working with our clients, the real objective is to get them to their "next thing". It's not the purchase transaction.

The process of getting safely to the "next thing" is the same, regardless of what area of life is involved. We first need to determine objectively where we are. Objectively probably means a second, third, or even higher opinion. This shows us our "as is" state, which is sometimes hard to see without the outside help.

Now the problem is not an unknown change. It's having to navigate a Gap between the "as is" and our "what's next." A Plan, or Gap Analysis, should make intuitive sense to us, even if it involves new and novel activities.

This is being written on Easter Sunday. The Resurrection , a plan to navigate the Gap separating God and man, is now celebrated by over 2 billion Christians around the world. I have to believe that closing Gaps and moving forward to "what's next" is the inherent pattern of all creation.

Sunday, April 5, 2009

Mapping Successful Habits

Steven Covey's 7 Habit's of Highly Successful People made the connection between business success and individual habits. This week Mary White of WTC Performance Group introduced me to the simple map on the left. It's an approach to looking at how those successful habits are formed.

We sometimes find business owners who are personally ready to sell their business; however, the business isn't ready to be put on the market. It's current value isn't as much as the owner knows it could be worth. Consultants, like Mary, work with these Active Investors to close this gap.

A common mistake made by consultants and coaches is to jump in with their expertise. On the map that's moving from Step 2 to Step 3. Often, the real need is to start at Step 1. The most immediate contribution a business value consultant brings is the ability to see an issue outside of the owner's awareness. This takes daring on both the part of the consultant and the part of the owner to allow it. That's what the #1 box in the map is all about, our Unconscious Incompetence.

Once aware, it's a process to move to the Conscious Incompetence awareness in Step 2 and then the Conscious Competence of skill in Step 3. The new skills are ultimately "ours" when we finally move into Unconscious Competence, Step 4, which is Habit. 

It's all very systematic once past that first step. Having the insight and courage to know when to take that step is the hardest part.