Tag: business culture

  • Value versus valuation

    Value versus valuation

    “There are people who build media companies for valuation, then there are others who build media brands for value,” writes Skift c0-founder Rafat Ali in his account of how the business stopped worrying about raising venture capital and focused on bootstrapping the travel industry website.

    Ali’s story of how Skift’s founders gave up on finding investors, refocused their business and found revenues to bootstrap the organisation is worth a read for anybody starting a venture, not just a tech or media startup.

    Notable is Ali’s distancing Skift from the startup label, claiming it’s “a meaningless word that comes with too much baggage”.

    The story of Skift is an interesting perspective on growing a business outside the current focus on external investors, instead focusing on the value it adds for customers, users and readers. Just as Skift went back to basics, many of us should also focus on how we and our businesses add value.

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  • It’s you, not them

    It’s you, not them

    An article in Bloomberg on The Three Types of People To Fire Immediately is a classic example of mistaking symptoms for the cause of an organisation’s problems.

    G. Michael Maddock and Raphael Louis Vitón write that the biggest blockers to innovation in a business are the employees who can be roughly divided into four groups; the ones who welcome innovation and the three groups who block it – “the victims”, “the non-believers” and “the know it alls.”

    Vitón’s and Maddock’s advice is to sack those in the three groups of blockers.

    If anything sacking the “know it alls” means you will lose valuable corporate memory, the “non-believers” maybe the dissenters who are critical in keeping visions in contact with reality and the “victims” may actually be the most passionate people in your organisation.

    Those “victims” are often the people who’ve tried to make a difference early in their careers, their attempts failed and they found themselves sidelined and embittered within the organisation.

    I came across many of these when I was working with the state government, they’d had good ideas and continuously found themselves belittled when they’d tried to implement them.

    To add insult to injury, many of those ideas would be adopted some years later to great fanfare with credit given to the same managers who’d stifled the earlier suggestio

    Rather than giving those “victims” a pink slip, it might be worthwhile talking to those staff and finding why they are negative and where the system can be improved.

    If you have a workplace full of negativity then the blame for a dysfunctional culture usually lies in the management suite.

    Perhaps it’s the managers who need to be fired for creating a nay-sayer business culture of victims and non-believers.

    My concern with Vitón’s and Maddock’s advice is that it seems to play to the conceit of executives who think they, and their organisations, are something they are not. That’s nice for management consultants stoking corporate egos but a lousy deal for shareholders, staff and customers.

    Sometimes it’s better to understand what your business is and where the organisation’s strengths lie  – both in management in and staff – before jumping on the innovation bandwagon.

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