Tag Archives: Malcolm Gladwell

Two Paradoxical TED Talks Every Business Owner Should Watch

Business Strategy, Management, , , ,

My thanks to Hubspot and post author Mike Whitney for today’s two Friday videos. Whitney included these two in his selection of 4 TED Talks Every Marketer Should Watch, from last year. I want to focus today on these two as not just for marketers, but also essential TED talks for business owners. They go beyond marketing into product and business definition. choice, and business data. Neither of these is new, but both are fundamental, and the contrast is important.

Malcolm Gladwell says trust the data

Whitney included this summary:

[Gladwell] tells the tale of Howard Moskowitz, a consultant who revolutionized the way companies align their product with their brand in the 1970’s and 80’s. There is much to be learned from Moskowitz’ example, especially as told by Gladwell, about how to use data driven buyer personas (sound familiar?) to provide the most possible value to your customer base.

Previous to Moskowitz’ research, companies were in the habit of seeing product development as a linear path towards one ideal item, as perfectly aligned with the desires of their customer base as possible. In order to develop an idea of what those desires were, traditional focus groups were used obsessively, rounding up endless groups of sample-consumers, and simply asking them what they prefer in a product.

Sheena Iyengar says put limits on choosing

Whitney followed that with this one, which he describes as “coming at the same problem from opposite sides of the ideological spectrum.” I like that. It fits my view of how much business is full of paradox and contradiction. Iyengar talks about the “choice overload problem”. The following is from his summary.

As a graduate student, Sheena executed a very interesting experiment with a local grocery store which was noteworthy for having a plethora of different options for all of their different product offerings (75 different olive oils, 348 flavors of jam etc.).

Sheena, though, was curious as to whether this actually promoted revenue or was a hindrance to it. To test this, she got permission from the store manager to set up a ‘Free Samples’ table in the store and do two trial runs: one with 6 options, and one with 24 options. She found that about 20% more people stopped when there were more options.

However, when tallying how many people actually bought a jar of jam as a result of stopping, she found that the table with fewer options was more effective as a marketing tool. Why might this be? This goes back to the choice overload problem. Sheena finds that if a consumer is bombarded with too many options, he/she will often ‘choose not to choose.’ For your business, that means lost revenue.

The Nature-Nurture Debate on Entrepreneurship

Business Education, Entrepreneurship, , , , ,

Is entrepreneurship something people are born with, or do they learn it? Good question, I suppose, but not one I expect anybody will ever be able to really answer. Emily Malby does a good balanced job of reporting about it in Entrepreneurship: A Look at the Nature-Nurture Debate on the Online Wall Street Journal (WSJ.com).

WSJ page view

I’ve always found the nature-nurture debates interesting because only a fool is ever really sure anything is one or the other. These are all great examples of arguments in which the only intelligent answer is uncertainty. Who could ever isolate all the factors involved? And what about Malcolm Gladfield’s book Outliers, for example, which suggests that true expertise takes 10,000 hours of hard work. Is the accomplished musician, or the successful artist, the result of talent, training, or both? And what’s the role of luck?

The WSJ quotes a survey taken with 500 entrepreneurs in the UK. It says:

Only 13% believe that skills they gained through education and experience were the main drivers in starting a business.

Hmmm … but what does that mean, “the main drivers?” and what does “skills gained through education and experience” mean? The report goes on to suggest a contradiction, and maybe a problem with definitions:

Almost 90% of entrepreneurs who took the survey had worked for another company before launching their own companies, and 30% had studied business and management.

So that’s kind of mysterious. I think it goes back to how hard it is to get data like this. We don’t get the facts — as if there are any — but what people say about themselves. And nobody asked unsuccessful entrepreneurs what they thought … what if lack of education and experience increases the likelihood of failure?

The WSJ story, I should add, goes on to give a well balanced summary of this debate, quoting experts and research on several sides of it.

And either way, the nature-nurture debate has nothing useful to say about whether we can teach entrepreneurship, or learn entrepreneurship. Whether it’s learned or innate, there is still the matter of training, and skill, and experience. Don’t tell me born entrepreneurs don’t gain from learning the normal process, and skills like cash flow and marketing. Don’t tell me that the luxury of learning, if it’s available, doesn’t help.

For every Bill Gates or Mark Zuckerberg there are hundreds of millions of the rest of us.

Jonathan’s 7 Extraordinary Moments

Back to Fundamentals, Business Education, , , , , , ,

Jonathan calls this collection The 7 Keynote MBA: How to Save 2 Years and $100,000. page viewA bit of an exaggeration, perhaps, but there’s certainly a lot of education here. And if some posts are great reading, this one is great watching.

Jonathan has collected seven of the best-ever videos about small business, small business marketing, work, and life, and put them into a single post.

It starts with Guy Kawasaki’s Art of the Start video, and goes on from there. That one and two others have appeared on this blog before. All seven of them are golden.

Jonathan calls them “seven extraordinary moments with seven great visionaries.” I agree.

The first one, Guy Kawasaki, takes the better part of an hour. The others are all 15-20 minutes.

Blogging: 10 Things To Do with A Bad Headline

Weblogs, Writing, , , ,

I thought it was one of my better posts ever on Huffington, A Great Debate About Ideas, because it covered something really important — the battle of free vs. not — and tied Chris Anderson, Malcolm Gladwell, Seth Godin, and Ellen Goodman together.

But it wasn’t, it turns out, because of a dull deadline. Maybe I should have called it “The Battle of Free vs. Not.” Hmm, no, see, I’m not that good at headlines. “Naked idea orgy?”

  1. Delete it
  2. Start over
  3. Make it a list of 10
  4. Make it a list of 5
  5. Insult somebody famous
  6. Find a way to add one or more of the words “naked, brutal, violent, sexy, stripped, revealed, angry, face-off” … or something like that.
  7. Blame it on the readers, the editors, or anybody else you can think of.
  8. Take a walk, and think about a single sentence that would make you want to read the rest of the post.
  9. Go browse a blog reader like Google reader set to show just headlines.
  10. Go back to point 1 and go right down this list again.

True story: when I was young, working with UPI in Mexico City — we’re talking about early 1970s, so seriously, a long time ago — the system we used to report Mexico news to New York Editors showed them the first sentence only; from that, they had to decide whether or not they wanted to see the whole first paragraph. And, with that, they had to decide again (push a button) whether they wanted to see the rest of the story. So I should be able to do this.

And something else, that I’ve learned, in a lot of years writing: there are many different varieties of writing. Being good at one doesn’t mean you’re good at another. I used to think I was a good writer, but copy writers amaze me. And in newspapers, reporters don’t write the headlines. And writing and creative fiction plots are totally different skills.

Damn headlines.