Management

March 13, 2008

Steve Jobs speaks out

The online excerpts from Fortune's interview with Apple CEO Steve Jobs are well worth reading.

Apple is a mature company who has retained its innovative outlook, passion and hunger. They know what they do best and stick to that.  If they don't love a potential product, it doesn't get made. If they're making a product but it's not quite right yet, they don't ship it anyway - they stop the project and get it right. They're experienced enough to anticipate what customers don't yet know they want to create something that they can't live without. They're totally committed to extraordinary design, stunning aesthetics, simplicity and usability. They didn't plan to redefine the music industry with iTunes, but they did it so well that they did. 

How could you not love Apple?

Do you want to build a universally-admired large company like Apple? Don't make compromises at the start - how you begin & build your company is how you will end it.

February 28, 2008

Gordon Ramsay, restaurant catalyst

I love watching the UK version of Gordon Ramsay’s Kitchen Nightmares, a TV show featuring one of the world’s most successful chefs delivering weeklong, intense and foul-mouthed crash courses on how to run a restaurant for those who desperately need it.

Here’s the first ten minutes of one episode:

Gordon follows more or less the same consulting method each episode:

1. Visit as a customer
Gordon visits, tries the food & samples the service. He provides critical feedback, pulling no punches, to the assembled owner and staff.

2. Obtain commitment to change
Gordon shows how bad things really are and obtains commitment from everyone to change.

3. Observe staff
Gordon steps into the kitchen and watches the chefs and service staff at work. Typically owners haven’t put systems in place either in service or the kitchen, don’t have properly trained staff and don’t have enough experience to improve the situation.

4. Demonstrate viability
Most owners cannot go much further financially and have reached desperation point. Gordon demonstrates how the business can be turned around, sometimes running trials to show how much money can be made.

5. Inject business sense
Gordon puts systems in place across the restaurant, leverages relationships to get better deals on business inputs and finds contra deal opportunities such as cross-promotion.

6. Rebuild passion
Usually the staff have wallowed in mediocrity for so long that they’ve lost all interest in their job. Gordon works with them to restore “passion, care, attention & love for food”.

7. Provide focus
Typically the restaurant has an inconsistent theme and a menu without focus. Gordon says "a good restaurant does one thing brilliantly, a bad one does fifty badly" and typically cuts the menu down to 5 excellent (& simple to prepare) dishes per course.

8. Restore confidence
Gordon often provides the staff with a surprise challenge that irons out problems in the kitchen and restores confidence of the staff and owner.

9. Consolidate the learning
Gordon observes staff on a busy night, irons out remaining bugs in the system.

10. Find replacement staff
Some staff cannot change or do not have the owner’s interests at heart. Gordon provides the owners with the courage to get rid of them and finds qualified replacements.

11. Leave
Gordon Ramsay know how to make a number of small changes to achieve significant outcomes. Then he hands control back to the thankful owner and leaves.

So that’s Gordon Ramsay’s method. It’s good advice for any type of business and entertaining to boot.

February 26, 2008

Beware the second-order solution.

I have a great party trick – I can catch almost anything that I accidentally drop. My ability to catch is only a second-order solution, however - it's a response to a first-order problem of clumsiness. Really I should try and overcome my clumsiness but for now it's easier to catch things and wear the odd breakage.


I'm not alone - many businesses have sexy, fun or easy second-order solutions to first-order problems. It’s sexier to make new sales than it is to invoice on time and chase bad debts. It’s more fun to chase new customers than to take care of existing customers and generate repeat business. In a public company it's easier to boost the share price by making grand announcements than by working hard to increasing company profits.

Beware the sexy, fun or easy second-order solution - the only long-term strategy is to knuckle down and fix your first order problem.

The business catalyst blog

  • A frequently-updated blog providing ideas, tools and resources to entrepreneurs and business people.

    Andrew is a business catalyst providing solutions to help you start, grow or rescue your venture, either as a consultant or equity partner. www.andrewmackie.com.au

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