http://leanstartups.com Best practices in lean business operations, technology, and other areas pertinent to success of startups, small, and mid-market businesses. Sat, 13 Mar 2010 08:17:36 +0000 http://backend.userland.com/rss092 en Earned vs. need-based loyalty – The Operations Guy post is a post from: Lean Startup Blog - rants and raves from the startup trenches.

Call me old fashioned, but I cringe every time I hear another claim about how we are moving into the age of “careerism” and “just in time staffing”. Why? Because we always hear about this fad right at the tail end of every downturn.  It’s like herpes spread by some “experts” who never had to operate a company. I am yet to see a substitute for a loyal team - during bad and good times. Earned loyalty takes time to build, compared to need-based loyalty, so you must build a strategy to foster earned loyality long before you need to “cash it in”. What do I mean by earned loyalty vs. need-based loyalty?  Many people are staying with their current companies right now because of need-based loyalty – they have mortgages and car notes to pay. But this type of loyalty has no longevity because the company did not earn it. Yes, I said it: earning the loyalty is completely the job of the company and its leadership. Progress is a #1 motivator for knowledge workers (money is not even in the top 3) and I think it is what helps keep people loyal. Here are some methods that could help build that earned loyalty...]]> http://leanstartups.com/loyalty-types.html Dangers of big titles – The Operations Guy post is a post from: Lean Startup Blog - rants and raves from the startup trenches.

In 2007, I was interviewing with a later stage stealth startup in Boston. During my conversation with one of the co-founders, I asked about her title. Her answer has stuck with me to this day. She said: "if you are in a startup and have a title, you are not doing enough work"! This sentiment resonated with me and made me think about why big titles are so dangerous. I have worked for several very innovative "flat hierarchy" companies, where titles were irrelevant, that had rapid growth fueled by passionate employees who always went above and beyond to make customers happy. It is no surprise that at one company we had a 95% customer referral rate and the most loyal customers I have seen in my entire career. I also made the mistake of joining several companies that developed org-charts before they fully figured out what their customers wanted. The result was an environment of heavy office politics, innovation-squashing dictatorships, and clients leaving not too long after discovering the dysfunction. No amount of effort could turn these companies around and two out of the three went out of business. So why are big titles so dangerous?]]> http://leanstartups.com/the-operations-guy-big-titles.html Change is in the air! Time to pivot. is a post from: Lean Startup Blog - rants and raves from the startup trenches.

I’ve recently been thinking about how I can further help the readers of this blog and earn even more good “business Karma”. Several of you have mentioned that you’d like a broader range of topics covered on this blog, so I have decided to take LeanStartups.com to the next level by expanding it and adding guest bloggers to my team. As we like to say in the world of startups – time to pivot. I am actively looking for passionate practitioners of marketing, finance, accounting, recruiting, and staff development to share their expertise to help capital efficient lean startups increase the odds of surviving.]]> http://leanstartups.com/time-to-pivot-change-is-in-the-air.html How a foosball table can kill your startup – part two is a post from: Lean Startup Blog - rants and raves from the startup trenches.

Since an article I wrote in June of 2009 called “How a foosball table can kill your startup” is still sparking attention and conversation, I think the time is ripe for me to expand on the topic. Yes, I still believe that tchotchke “benefits” do nothing but waste money.  Instead, use your resources to attract new, retain your best talent, and improve your team’s happiness. Here are additional issues for us to consider...]]> http://leanstartups.com/how-foosball-table-can-kill-your-startup-part-two.html Beefing up your lean marketing is a post from: Lean Startup Blog - rants and raves from the startup trenches.

Guest blog post by Greg Strosaker As the Lean Startups blog grows, I want to start bringing in other subject matter experts to help better serve my readers. Therefore, I am very excited to introduce Greg Strosaker as my first guest contributor. Greg, who previously worked for 13 years with General Electric as an engineer, has spent the past four years heading up marketing at several small- to mid-size material and industrial equipment firms.  Greg also runs the Constant Cogitation blog, where he discusses marketing, strategy, and leadership topics. Since my last post drew some attention from the marketing folks (and struck a nerve of those who refuse to grow and evolve), I wanted to bring in the perspective of someone in a different industry who makes a living from marketing.]]> http://leanstartups.com/beefing-up-your-lean-marketing.html We don’t need marketing – we need customer anthropology is a post from: Lean Startup Blog - rants and raves from the startup trenches.

I wasn’t able to make it to LaunchCamp Boston today, but was still able to virtually participate via the live video and Twitter streams. During a discussion on Twitter with two great marketing folks, Bobbie Carlton and Rachel Levy, I made several remarks...]]> http://leanstartups.com/we-need-customer-anthropology-not-marketing.html Customer service in the age of the social media is a post from: Lean Startup Blog - rants and raves from the startup trenches.

I can’t claim I was early social media adopter, but I have been on Twitter, Facebook, and LinkedIn for a while now and built a following.  I have met the majority of my followers in person. I am also not shy about reviewing businesses on Yelp and other sites, because I believe both positive and (especially) constructive negative feedback can improve businesses. We have seen some massive changes in the last decade as the impact of word of mouth has grown exponentially as each new communication platform became mainstream. While a story of poor customer service experience used to rarely travel beyond a close circle of family and friends, everything has changed now that we have entered the age of social media. The tables have turned and the transparency and the accountability levels of the businesses are way up (intended or unintended). If you screw up, there will be video parodies of your business on YouTube and Yelp reviews containing the gory details - your (now former) customers will freely share their displeasure with thousands of their friends and followers before the dust has settled. Talk about a ripple effect!]]> http://leanstartups.com/customer-service-in-the-age-of-the-social-media.html How to be an entrepreneur/intrapreneur and not ruin your marriage is a post from: Lean Startup Blog - rants and raves from the startup trenches.

The associated risks of starting a company are hard enough when you are young and unattached (though lack of experience and naïveté keeps you brave and motivated). But being in a long-term relationship, married, or a parent adds a whole new level of complications, risks, and motivations. It is not surprising that VCs like investing in companies led by young, single, male entrepreneurs (some think this is because it is easier to control them and make them work 24x7).  But my own experience tells me that the vast majority of entrepreneurs are married and many are even parents. Our wives/husbands/partners are the true unsung heroes. Some of the most successful business people have a great supporter behind them.]]> http://leanstartups.com/entrepreneurs-and-marriage.html Why I LOVE critics and why you should too is a post from: Lean Startup Blog - rants and raves from the startup trenches.

I am absolutely honored to hear comments in person or via social media. I enjoy knowing when my answers to a question on LinkedIn (or Answers.onstartups.com) or another blog helps someone. But the world would not advance anywhere if everyone agreed! Therefore, I also highly value feedback from those who disagree with me (as long as it is presented in civilized manner). My critics and detractors keep me on my toes! No one is right all the time and I often advocate that being wrong often helps us move our companies forward faster. Here’s why I love my critics and why you should too:]]> http://leanstartups.com/i-love-my-critics-and-you-should-too.html The 7 deadly sins of entrepreneurs is a post from: Lean Startup Blog - rants and raves from the startup trenches.

I love startups and small businesses! It has been an unpredictable ride over the past 12 years, but I have always enjoyed working and meeting with some incredibly interesting people. I recently met Jason (founder of GreenhornConnect), and he invited me to write a guest blog post sharing some of the major mistakes I think entrepreneurs make. I have made tons of them myself and have also seen many others shoot themselves in the foot. But, perhaps this list will help you avoid some of the biggest ones!]]> http://leanstartups.com/7-deadly-sins-of-entrepreneurs.html My boss does not answer my e-mails! What do I do? is a post from: Lean Startup Blog - rants and raves from the startup trenches.

Everywhere you turn, someone is typing away on their Blackberry or iPhone.  While more and more of us are plugged in 24/7, since smartphone technology has become easier to use and cheaper to acquire, you’d think people would be responding more quickly to all their emails.  But, I’m actually not surprised that one of the most searched terms on my blog is: “boss does not respond to e-mails,” because the person sending the message often forgets that they are responsible for making sure the message AND the method of delivery encourages the receiver’s response. I have already written an article on how to write e-mails to your boss or an executive, but now want to focus on a different angle, because many times it is not the message, but in the way it was delivered that keeps it from being read. Here’s what you can do...]]> http://leanstartups.com/boss-does-not-answer-my-emails.html Dear attorneys, here’s what you can do to stop business people from hating you. is a post from: Lean Startup Blog - rants and raves from the startup trenches.

When the word "lawyer" or "attorney" is mentioned, most business people either make a joke about how lawyers belong in hell, or complain about how their attorney recently overcharged them. As the head of operations for several companies, I had to deal with attorneys almost every day.  I was also part of a law firm at one point in my career, so I have developed a very intimate and unique perspective of the inner workings of the legal industry. So why am I writing this open letter to lawyers? Like many others, I have a love and hate relationship with attorneys. I don’t expect I can change much, since many bad practices become engrained during law school.  But, us business people will always need lawyers, so I have a vested interest in helping attorneys understand our perspective.]]> http://leanstartups.com/attorneys-why-business-people-hate-you.html Time to end the frat house culture! We need more women in our midst. is a post from: Lean Startup Blog - rants and raves from the startup trenches.

One of the top five issues I’m passionate about is the need to increase the number of women executives, techies, scientists, and entrepreneurs. Why does this subject get so much of my mental energy?]]> http://leanstartups.com/time-to-end-the-frat-house-culture.html Thinking about joining a family-owned company? Watch out for stormy waters! is a post from: Lean Startup Blog - rants and raves from the startup trenches.

Many wonderful small businesses around the world, from restaurants to product manufacturers, are run by families. In my opinion, these companies have a lot of longevity built into them, because exit strategies rarely cross the minds of founders, and family ties keep the employee retention rate high. But, there is the caveat: family businesses are great… if you are a member of the family. If you are an outsider, there are several dangers...]]> http://leanstartups.com/what-to-consider-before-joining-family-owned-company.html Companies that become unionized deserve it! is a post from: Lean Startup Blog - rants and raves from the startup trenches.

Back when I lived in Chicago, I had the pleasure of working with a really grounded and wise CFO. He was an “old dog” with a CV many would envy. During one of our conversations about work environments, he said something that stuck with me: “companies that get unions deserve them”. If you treat your people fairly, invest in them, and genuinely care about their future, no union or union mentality has any reason to exist in your company. So how do we make sure our employees are working for and not against us?]]> http://leanstartups.com/companies-that-become-unionized-deserve-it.html Beware of corporate cockroaches is a post from: Lean Startup Blog - rants and raves from the startup trenches.

I was recently overheard a conversation on the T (Boston’s subway) between two coworkers who were scheming on how to take more “sick time” without getting caught, brown-nose their boss to get what they want, and stay under the radar. These two individuals were corporate cockroaches! I have an allergy to corporate cockroaches that no EpiPen can cure. They are the spoon of crap that ruins a barrel of honey and the rotten apples in a bushel of good ones. Nothing makes me angrier than those who try to game the system – their actions hurt both their team and company. ]]> http://leanstartups.com/beware-of-corporate-cockroaches.html How to ask for help is a post from: Lean Startup Blog - rants and raves from the startup trenches.

I was recently helping a good friend with some logistics for an event she was organizing and I got a little frustrated, because I knew I could have contributed more if she would have asked for my help earlier. This inspired me to say: “Emmi, I am going to write an article about how to ask for help!” In any business endeavor when resources are tight (e.g. money, time, sleep, etc), one must know how to ask for help or a favor.]]> http://leanstartups.com/how-to-ask-for-help.html Leadership lessons I learned at my father’s funeral is a post from: Lean Startup Blog - rants and raves from the startup trenches.

I previously mentioned that I was blessed to have a father who was a very powerful role model (see my article “12 rules of business I learned from my father” to read more about him). He shaped my views on leadership, teamwork, and business, and I wanted to share a story with you about a very sad, yet inspirational, day in my life.]]> http://leanstartups.com/leadership-lessons-i-learned-at-my-fathers-funeral.html How Freecycle helped me bootstrap is a post from: Lean Startup Blog - rants and raves from the startup trenches.

I have a confession to make. Thanks to having worked for only customer revenue funded startups, I have become somewhat of a frugal nut. I love free stuff and I cringe at paying asking or retail price for anything. Anytime I pay MSRP, I feel like I have committed a sin. Whenever I would run operations in a startup, my most common response to many purchase requests was:” and with what revenue are we going to pay for that?” To me (and many others) cash is king, queen, emperor, and the whole darn extended dynasty. The only way I like cashflow in our books is incoming.]]> http://leanstartups.com/how-freecycle-helped-me-bootstrap.html The biggest mistake of my career is a post from: Lean Startup Blog - rants and raves from the startup trenches.

I made the biggest mistake of my career when I lived in Chicago – I rarely networked.  I went to maybe 1-2 events per year and made an occasional phone call. My excuse was that I was too busy for it. In retrospect, I cringe when I think about how many business opportunities and great talent I may have missed out on recruiting for my company, because I was too cooped-up in the office preventing “fires” and taking care of my people.
But I’ve changed my ways.  Ever since I moved to Boston...]]> http://leanstartups.com/the-biggest-mistake-of-my-career.html