October 2019

Peter Theil’s 5 Lessons for Building an Innovative & Successful Startup from the Book ‘ Zero to One’
The author, Peter Theil, is a renowned investor, entrepreneur, and funder of companies such as SpaceX & Airbnb. In his book Zero To One, he talks about building a startup from scratch, the challenges one may face, and what all one should do to make it successful.

He shares his thoughts on taking a new idea of a product or service that people haven’t seen or heard of before and scaling that as a company, that is, in other words, taking something from ‘Zero to One’.

It’s easy to copy something & increase the competition but if we look back in history, it is the unique ideas that sell, be it the first-ever computer programs by Microsoft or selling a wide variety of goods online such as Amazon. One main idea of the book is that competition is bad for business and employees. A monopoly is good for them as competition squeezes out all the profits and monopoly generally have large profit margins. Examples are Google, Facebook, and Apple.

Here are 5 key lessons from Zero To One by Peter Theil that can help you to build an innovative & successful startup:

1. One Niche At A Time

When you think of your idea for a startup, think of something in a less explored field, which could have a selected group of loyal customers and would make your company different and would attract people who were alien to that field earlier.

The author, Peter Thiel, was one of the core members of the founding team of Paypal. He spoke about how Paypal came up with a unique system that gave people all over the world control over their currencies digitally like never before.

2. Work Towards Building A Monopoly

Peter Theil wrote this in an article on Wall Street Journal:

“The opposite of perfect competition is a monopoly. Whereas a competitive firm must sell at the market price, a monopoly owns its market, so it can set its own prices.”

If the quality of your products & services is great and has proprietary technology and network effects, it would lead to building a brand monopoly for you in the market and you would higher margins and other benefits of monopolies. He also adds in the book that the higher the price of your product, the more you can (and you should) spend on sales.

3. Innovate Around The Market

The book states that it’s important to learn from asking the right questions to potential customers and researching about the scope of your offerings.

Research on the companies that offer products in the same category – be it mobile apps, food trucks, etc. Compare the prices and study their USP’s and then come up with the best possible products and offers that don’t exist in the market.

4. Improve Existing Business or Products

A lot of times, we are not exactly building from scratch, we already have a few products selling. It’s possible that they might not be doing so well so you think of coming up with a new line completely. To save your cost of introducing more products, you can look if any innovation can be made to the existing products.

“Grand visions inflated the bubble, so they should not be indulged. Anyone who claims to be able to do something great is suspect, and anyone who wants to change the world should be more humble. Small, incremental steps are the only safe path forward.” – Peter Theil

5. The Last Mover Advantage

The first-mover advantage has its perks but nothing can be better than having the benefits of remaining the last significant player. It’s all about a startup surviving and outlasting the competition.

He also adds that good teamwork has a big hand in the success of a startup. The founders and their beliefs should be on the same page and know each other before starting the company.

Conclusion

The author says that people believe there are no mountains left to climb as there is nothing that hasn’t been discovered. But the reality is that there is always something that we miss, something new to bring to the table. In the book Zero to One, Peter Theil shares the below Seven Questions that Every Business Must Answer.
1. The Engineering Question – Can you create breakthrough technology instead of incremental improvements?
2. The Timing Question – Is now the right time to start your particular business?
3. The Monopoly Question – Are you starting with a big share of a small market?
4. The People Question – Do you have the right team?
5. The Distribution Question – Do you have a way to not just create but distribute your product?
6. The Durability Question – Will your market position be defensible 10 or 20 years into the future?
7. The Secret Question – Have you identified a unique opportunity that others don’t see?
Oct 24, 2019
5 Lessons From Simon Sinek’s Start With Why: How Great Leaders Inspire Everyone To Take Action

Simon Sinek, the author of this book is a motivational speaker and someone who looks at the world with great optimism. His Ted-talk is the third most viewed talk. Through this book and interactions with the public, he actively encourages you to think beyond the obvious, to go back to the root cause of starting your business or joining a job. He teaches leaders how to inspire the whole organization to think that it doesn’t matter what you do, it matters why you do it.

He says that famous leaders such as Martin Luther King, the Wright Brothers (who invented the first aeroplane), and Steve Jobs are all from very different fields but they had one common factor. They all began their research and their ambitious projects based on a single ‘why’.

“Inspiring leaders and companies…think, act and communicate exactly alike. And it’s the complete opposite of everyone else.”

His ideas have grabbed the attention of various industries, from small startups to Fortune 50 companies and from Hollywood to the Congress and to the Pentagon. Here are 5 Key Leadership Lessons from the book ‘Start With Why’ by Simon Sinek.

1. Understand the ‘Golden Circle’

The author looks at exceptional leaders who have always thought differently from common people and that is what has brought them success. He says it is important to understand how these great minds think. He shares in the book that inspirational leaders start by identifying their purpose, cause, or vision.

He defines the concept of a ‘Golden Circle’ in the book. It starts with a vision (the “Why”), then moves to implementation (the “How”), and then conquers the product or service (the “What”).

The ‘why’ factor is a justification for a company to exist, it explains how things are done in the company and how decisions are made.

2. Inspiration is the Key to Influence People

The author talks about how inspiration works better than manipulation.

Manipulation such as dropping the price, blinking texts, using fear, peer pressure, promotions – these lead to short term gains but cost more over a longer period of time. If people understand what truly inspires you and understand why you wish to sell a product that is the key to influence people, build an image, and make a close connection to your audience.

People should feel compelled to buy your product in the sense that they feel they really need it and genuinely resonate with the message behind it.

Great leaders…inspire people to act…Those who truly lead…create a following of people who act not because they were swayed, but because they were inspired. – Simon Sinek

3. Money or Profits Is Not A ‘Why’

Money is not a ‘why’ and is never the reason that leads to the success of a company. Innovation comes from thinking about the ‘why’ – which is the reason you get out of bed in the morning.

Often when organizations are on a downfall, they only look at making money and surviving. Profits are important but more important than that are the ethics, values, unique practices of a company that sets it apart and the same apply to people as well.

Simon Sinek shares the stories of Apple, Wal-Mart, Costco, Starbucks, Martin Luther King Jr, and a few others in the book.

“Imagine if every organization started with Why. Decisions would be simpler. Loyalties would be greater. Trust would be a common currency.”

4. The Power of Trust

When ‘what’, ‘how’ and ‘why’ come together, that builds trust in people and in organizations. People perform at their best when they are part of a culture that fits their values and beliefs.

“If there were no trust…no one would take risks. No risks would mean no exploration, no experimentation and no advancement of the society.” – Simon Sinek

He gives the example of Apple and the huge trust it has build with its customers who believe in the company’s philosophy. Other technology firms might make good products too, but Apple resonates with customers because people appreciate its vision.

5. Communication Begins with Listening

Listen to your audience. A simple thing like a logo can reflect a lot on the company and one must take note of how it is perceived. For example, the logo of Harley Davidson, the motorcycle company resonates with bikers and with adventure lovers so it has helped the company greatly.

Listening and observing your competition is very helpful.

The author poses a ‘Celery Test’ in which he gives the example that to grow what do humans need? A variety of good foods but you don’t need all of them. Similarly, when you observe your competition and listen to what your audience needs, you will come up with your own list of factors that your company should consider.

There is also a new form of competition that is when you work to improve yourself, individually. You are the best competition for yourself but you do need to listen to people around you to make better decisions.

I recommend this book to anyone looking to improve their relationships with others and recognize ways that good leaders can influence those around them.

Oct 15, 2019
Fred Kofman Shows A Different Way of Doing Business – 3 Key Learnings from the book ‘Conscious Business’
The author of this book, Fred Kofman serves as the Vice President of Executive Development of LinkedIn. As a part of one of his workshops on LinkedIn, he spoke to professionals around the world on ‘Conscious Business’ and seeing the excellent response, went on to write a detailed book on it.

This book is a guiding light to anyone entering the corporate world, climbing the corporate ladder, or for business leaders and resonates with our times when we don’t associate working with true living and fulfilling our purpose.

It brings us back to our roots, when we took decisions not just from our mind but also from our heart.

Conscious Bussiness : How to Build Value Through Values shows us how to do work that our conscience would approve of and would add some real value to society at large.

The author believes that conscious business is one made from your passions and inner beliefs and aligns well with your values as an individual and as a company. He defines a good business person as one of integrity.

Conscious businesses attract people and enjoy a loyal customer following for years. More than just aggressive marketing, it is about connecting with the customers on a deeper level and understanding their needs.

Here are 3 key learnings from this book:

1. Unconditional Responsibility

‘Being’ rather than ‘doing’ is what makes a good leader. A conscious business leader encourages his/her team members to think responsibly by first acting on principles of unconditional responsibility and setting an example.

When you personally feel responsible for everything happening around you and not just expect and blame others for inefficiency, it motivates the entire team to work as hard as you in meeting the business goals. A good leader reflects on his/her actions and encourages everyone to do that. It is the only way we can avoid mistakes and learn from them.

Listening to others is also an essential attribute of leadership. If there is a friendly and flexible culture in an organization then the smallest of problems can be solved at the root level before they become serious problems for the whole organization.

Unconditional responsibility also means that employees can always depend on the leader in times of crisis, the leader should be the driving force to take the company out of such dire occasions and not be someone who may just further delegate work and not participate in the happenings at all.

2. Impeccable Commitments and Managing Emotions

All actions should be accountable in an organization. A conscious business emphasizes on the need to stick to commitments and deliver results.

Commitments should only be made if they are achievable and the people making them are fully invested in them, and not just for appearances’ sake. The company should see and ensure if sufficient time is there to meet them so that employees are not rushed so much that they get exhausted trying to meet the commitments and compromise on the quality of the work.

The book also talks about managing our emotions in the workplace. Self-awareness and self-acceptance are the first steps to manage our emotions. It is possible that sometimes things will bother you which need not be addressed immediately and which can be solved by just being aware and conscious about our feelings.

The book also says that even our rational decisions are influenced by our emotions and we should not keep suppressing our emotions. If one feels that an emotion is serious enough to hinder your work, one should go ahead and discuss it with leaders in the company.

A good leader would understand and empathize with you and would help to reduce your stress. Nothing should be more important to a company than the employee’s well being and longevity in the company.

3. Authentic Communication and Unflinching Integrity

Fred Kofman, the author of this book, talks a lot about how good communication really bridges the gaps in organizations and provides a healthy work environment. Work is like a second home and what makes a home – a safe place where you can share your feelings with your family.

You should be able to do that in the workplace and the onus of that lies on the leaders. If such an environment doesn’t exist, one must not hesitate to express their ideas and inputs which they feel will help the company.

In all times, integrity is the crucial element of conscious businesses. The ability to stick to our values is often rare, with the rampant corruption and frauds that happen in business, like the Enron scandal or the recent Volkswagen emissions scandal. The companies that follow unlawful or unethical business practices can make a profit temporarily but end up being sued and losing in the long run.

Consumers today are smart and cannot be fooled easily. A bad reputation can break a successful business empire and no marketing efforts would be able to bring it back after committing unethical practices. Customers today want to be associated with companies that share and stand for their own values.

The book also teaches us to embrace humility and have patience.

The 12 Transformations On The Way to Conscious Business

The author Fred Kofman shares the below 12 transformations which anyone can take to take themselves and their organisation towards being a Conscious Business.
1. From blaming to owning: stop acting like a mere victim of circumstances out of your control and take charge of your life. (Responsibility)
2. From winning to meaning: stop pursuing only competitive goals and realize that happiness comes from pursuing a noble purpose through ethical means. (Wisdom)
3. From knowing to learning: stop trying to prove that you’re always right and open up to new possibilities. (Humility)
4. From judging to understanding: stop seeing people through your mental filters and put yourself in their shoes. (Compassion)
5. From avoiding to confronting: stop suppressing uncomfortable information and face reality. (Courage)
6. From pleasing to truth-telling: stop altering your story to be liked by others and start telling the truth to be liked by yourself. (Honesty)
7. From controlling to considering: stop telling people what to do and take into account what they want to do. (Respect)
8. From taking to trading: stop negotiating win-lose and look for ways in which everybody can be better off through an exchange. (Creativity)
9. From defaulting to delivering: stop defrauding your creditors and honor your promises unconditionally. (Integrity)
10. From indulging to investing: stop seeking immediate gratification and postpone pleasure for the sake of happiness. (Discipline)
11. From complying to committing: stop obeying as if you had no choice and choose to do what you do fully. (Commitment)
12. From bossing to leading: stop managing people through external rewards and punishments and inspire them with a dignifying purpose. (Vision)
Fred brings leadership language to a level I’ve never seen before. There are examples of dialogue between people with competing priorities which are very practical and show the principles in the book being applied. The book is well-grounded cognitively, emotionally, and spiritually and transcends the business world. Conscious Business provides the principles, practices, and tools to become a real leader, both inside and outside of work.
Oct 8, 2019
Now, Discover Your Strengths (2004) by Marcus Buckingham
We have all heard of the SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis. We have also been told that we should ‘tap into our strengths’, or, ‘focus on our strengths’, etc.

But what are our strengths? How do we figure out our strengths? And most importantly, how do we focus on them to be par excellent at our work?

Now, Discover Your Strengths (2004) by Marcus Buckingham answers some vital questions we have about what ‘strengths’ are. It shows us how one should firstly; understand how to find their strengths, how strengths are created in the first place, and why most people do not focus on their strengths.

It is also a good guide for managers and leaders on how to tap the strengths of their employees and teams, to make a business thrive and keep it successful consistently.

Now, Discover Your Strengths (2004) by Marcus Buckingham

The Incorrect Focus On Weaknesses

Right from the beginning, we are told to work on improving our weaknesses. Whether it is in school or at the workplace, the focus has always been on finding how to turn weaknesses into strengths, leaving our strengths un-honed, especially when it is our strengths that chart our paths to success.

Strength is defined as any activity that a person can do repeatedly, to perfection, and at the same time enjoy doing it. Yet, many organizations focus time, money, and resources on trying to fix employees’ weaknesses. Companies make their employees attend special training to work on their weaknesses, without realizing that their resources are better used in helping employees better their strengths.

A study conducted by The Gallup Organization conducted research and asked 198000 employees across the varied businesses if they were able to do what they did best at work every day. The results showed that the 20% who strongly agreed that they were able to do what they do best, were –
- The ones who were 50% more likely to work in organizations with a low employee turnover
- 38% more likely to be working in productive businesses, and
- 44% more likely to be working in companies that had higher customer satisfaction.
These statistics prove that organizations need to change their perspectives towards strengths and weaknesses. Rather than focus on improving weaknesses (damage control), they should focus on improving and perfecting strengths (development)

Building New Strengths

Everyone has strengths. But, how does one have these strengths? Are they acquired? Or built with practice? If they were built with practice, how did we know right at the start that these were the strengths to build?

This is where natural talent comes in. A person’s talent is a pattern of behaviors and thoughts that make certain tasks easier. Or example, a person could be great at making friends and starting conversations with unknown people. While many don’t find it easier to connect with strangers, it could be said that this person has a talent for communicating.

A natural inherent talent is a predisposition and cannot be changed. However, a person can choose to develop a predisposition (or a strength) by skill and knowledge.
- Knowledge can be either experiential or factual. For example, a person learning to play the piano will require some factual knowledge of playing – like learning the notes, and additionally, gain experience by way of practice by listening and performing.
- Skills, on the other hand, can be gained by gathering experiential knowledge. Skills refer to those key aspects of the chosen activity that helps in improving performance. For example, a person who is an excellent orator will have the skills to keep the audience captivated.
Development of one’s strengths and being explicit about the skills they have can help in identifying where one’s skills lie as developing strength is a long-term process.

The Anatomy Behind Our Strengths

In order to really understand the nuances of strength development, it is necessary for us to dive deep into our anatomy. We need to know how strengths are created or formed. The answer lies in neuroscience.

Our brains, up to the age of three, have about 100 billion neurons that can make about 15 thousand connections between synapses. Yet, by the time we are 15 years of age, billions of these synaptic connections get lost permanently to avoid sensory overload and to reinforce specific connections so that our brains and intelligence can develop.

Some of these connections that remain become stronger than others and allow us to perform certain actions with better proficiency, making some actions, tasks, movements, etc. seem natural, while others uncomfortable. The natural actions become strengths.

These uncomfortable actions need practice so that they start seeming more natural to us and can overtake those connections that cause undesirable behavior. And this is the difficult part. These uncomfortable actions are our weaknesses.

Clues Hidden In Our Responses

A person’s strength gets wasted when their talent remains undetected or undiscovered. To be able to discover talents, one should look into their own spontaneous reactions.

Our instinctive reactions tell a lot about where one’s natural talents lie. Additionally, rapid learning and yearnings can become good indicators of different talents. Rapid learning of any subject can indicate that one has a natural talent for it. Yearning on the other hand can be seen in childhood. For example, if a person has a yearning to sketch and doodle as a child, there might be a natural talent hidden or art.

Seeking Out Strengths At The Workplace

How does working and focusing on strengths help organizations succeed and thrive?

In context to organizations, there are about 34 talents that can be relevant to the workspace that managers can optimize. A few examples could be –
- Analytical Employee – Analytical employees are objective and go by the data. They use logic and prefer a logical approach from others as well. Such employees need to be given clear and concise information to work well.
- The Commander – Commanders are always at the forefront, whether it to share opinions or to convince others to share their opinion.
- Restorative Employees – Restorative employees have a knack to wrangle out solutions from any situation. They love solving problems and can lift spirits when the situation is tense. Such employees are best suited for customer interaction roles.
Employers, leaders, and managers can use the strengths of employees to bring out their maximum, helping them succeed in their personal goals as well as in achieving productivity and performance for the team and hence the organization as well.

Final Summary

Organizations can channel the talents and strengths of their employees for achieving better productivity and performance, rather than focus on trying to improve weaknesses. Individuals on the other hand should pay attention to their natural abilities and try to use these natural strengths to succeed in their personal career goals. Focussing on strengths and natural talent is what makes the difference between an average performer and a star performer.
Oct 3, 2019