Economic Nostalgia

Yes, it's true and what does this mean? Is this the way society is headed regardless of whether knitting, canning, and overall self reliance is trending or not?

The culture in Portland seems to heading this way. Underneath the ridiculous trends and all the talk of hipsterdom, there is a an honest desire by many to be more self reliant. Because of this, the economy seems to be cutting out the fat and becoming more lean.

What types of opportunities will come from this shift? We're already seeing the emergence of a world class food culture in Portland, what else?

What Would You Change? - Part 2

I wanted to continue my thoughts regarding the business I started and try to answer the question, what would you change?

We're focused on strategy this week, so let's dive in.

When we launched our space, we knew that it was different. We wanted it that way. We were trying to build a professional space that would spur synergy, creativity, and economic development. Our vision was strong, our strategy, specifically how we positioned the space among competitors was not.

We started the space in September 2008, right when the economy was starting to take a dive. I decided to market the space as "affordable office space (plus)." The "affordable" would get them in the door and the added benefits of co-working would keep them and hopefully change their  perspective of the value they were receiving. From a sales standpoint, this worked well. Inexpensive office space got people in the door, singing leases, and paying rent. But, this strategy led to negative impacts to our brand down the road.

When differentiating between our space, a large open plan with 15 work stations, with our competition, which were mostly private office spaces scattered throughout town, we positioned it as "affordable" rather than open, creative, and different. This position led potential customers to believe that our space was affordable because it was open and shared, and therefore was inferior to private office space. When the real estate market worsened and landlords in the town began lowering the rent of their private offices, it made even current customers at the time ask why they would pay the same amount for open space as they would for a private space.

 All that said, due to the timeliness of the launch, I don't know what other strategy would have worked better. The strong economic forces that were bearing down on our small piece of the economy led all of us who were providing space and business amenities to have to adapt very quickly and often.

What would you change?

For me, this is a pretty strange question. I often don't think about what I would change because I find that there are so many valuable lessons to be learned from diving in head first into experiences like starting a business or...enrolling in grad school.

In September 2008, I started a business. (An excellent time to go into business...) I'm often asked what I would have changed about my business model knowing what I know now. Until recently, I didn't have the context to answer this question with insight outside of my own experiences. Now, I'm starting to formulate news ideas about what I could have done differently.

My business was a 3,500 square foot incubator and co-working office space that I designed and developed with the vision that it would be a catalyst for economic development in my hometown of Shelburne Falls, MA. I envisioned a thriving hub of young entrepreneurs working in synergy and inspiring the community to look ahead. I ran the space for tow years until it was no longer feasible for me to do so. I was not turning enough of a profit to live off of and it was taking up too much of my time to manage. In 2010, I worked with the building owner, a friend and mentor, and transitioned the space into his hands. This allowed me to step out and make an important life change and made it so the space continued to exist and provide value for both the owner and the tenants. When I left there were 15 tenants. There are now 25.

I used to answer that question of what I would change by explaining how I had become a middle man with all the risk. I was leasing a space, making improvements, and releasing it to tenants who wanted to share space and work alongside each other. Because I had no ownership of the building, I had nothing to borrow on and had little control of the expenses of the building.

What I realize now, when thinking about my business model, is that the value proposition was not fully aligned with the existing customer segments within the community. And, I did not have a financial plan that allowed me to bridge the existing needs of the customers with my long term and idealized vision of what the space would be and how it would affect the community.

In a strategy discussion during last month's intensive at BGI we discussed the role of intuition in business strategy. It may have been intuition that led me to build the space, that allowed me to make it something real, and ultimately led me to know that it was time for me to step away. I am thankful for this and I now realize that I put too much reliance on this intuition when starting the space. What is now apparent that was missing were the tools and resources necessary to run all aspects of the  business.

My thoughts are still formulating around this topic so this post is...to be continued.

When they Zig...

I'm currently reading a book called Zag, by Marty Neumeier of the Liquid Agency. In it, is the best definition for brand that I have heard. Neumeier defines brand as, "A person's gut feeling about a product, service, or company."

Could it really be that simple?

In essence, yes. Perhaps a company's control and degree of understanding of its own core qualities helps to strategically position itself so that it can survive and thrive. Brand has always been important to a company's success and right now it is more important than ever. Customers not only want a quality product at a good price, they want to align themselves with their choices because they know that our choices, our purchases, are a reflection of ourselves. In a way, the stakes have never been higher for companies to develop a solid brand worth emulating. Neumeier argues that the winning manufacturer is no longer the one with the best product but the one with the fastest supply chain. He quotes supply chain expert Rob Rodin who explains that companies today have no choice but to connect to the "three insatiable demands of business - free, perfect, and now."

How are companies to survive in such a climate, let alone compete?

Zag, simply implies that when everyone else zigs, you must zag.  Neumeier explains that companies no longer have to just compete with other companies to do things in a more cost effective and efficient way, they must compete with the absolute clutter and constant bombardment that the modern marketplace...provides us. Not only must companies stand out from the pack, they must somehow stand aside while the torrent of products and services flow by in a raging torrent. Marketing wise, rather than just yelling louder to be heard, being clever or witty, a company must be so different and confident in its own brand that it shines so (subtly) that nothing else compares. The best brands have always known this and now because of the incredible rate at which ideas and products are actualized  there is even less room for error, or, lack of self awareness and realization.

The question that fascinates me is,  how exactly does a company's collective understanding of its own brand affect its strategy and ultimate success - and - why can it be so difficult for a company to understand itself in simplistic and elegant terms?

(extra) ordinary

Tell me what you see.


I was taught to walk very slowly on the beaches of Prudence Island, RI by my grandmother who was a master at finding treasures. She found pieces of bone pottery, artifacts from the revolutionary era, arrowheads, and countless pieces of beach glass. Six years ago, I took a break from prepping for my thesis presentation in college to spend the weekend on Prudence to relax and reflect. While I was walking on Picnic Tree Beach on the west side of the island, I came across this view which instantly made me smile. This subtle and seemingly bland view of of two trees that I have walked past hundreds of times, on a grey spring day, reminded me of how important it is to slow down and appreciate the nuanced complexities and beauty of the ordinary and the common.

Enjoy.

Come Fly With Me

Travel has been on my mind lately. Aside from focusing a year long team project on tourism, I've flown back east for weddings and holidays twice in the last two months and have been traveling for work more than usual. I've never loved flying but I've always been comfortable with it.

Flying is of course crucial to our culture and our economy and since so many of us do it so often for work and play, shouldn't we all be racing to the airport to fly the friendly skies?

What happened to the domestic airline industry?
(Or, when did flying start to suck?)

The airline industry seems to be in...turbulent times. According to the national bureau of economic research, Delays and full flights had made passengers so averse to connecting flights that adding a layover to a route could reduce the number of passengers on it by almost four-fifths.

Within the last decade there have been four bankruptcies and two mergers within the major airlines. Fuel prices are high and customers are extremely price conscious and more savvy than ever with the ability to be constantly searching for the best ticket price on multiple online sites. Airlines must also take on large amounts of debt in order to finance their aircraft. All of this is translating to higher priced flights that are fully booked with less provided services than we have come to expect and more charges to things like, luggage.

If fuel prices continue to rise and customers continue to demand more for less and the ability for airlines to respond to these issues due to the long development time of new technologies and the large amounts of borrowing it takes to build a fleet of airplanes, what will the airline industry do to adapt?


And further, to play off my last post, how does a behemoth of an industry with limited variations in technology, that takes massive investment and has high regulation begin to innovate for a changing world and a disenchanted customer base?

While working on an accounting problem earlier, I learned that the airline industry is in fact considered a service industry. This of course made me think of the issues they face in whole new terms.  If I were them, I'd start here.

I've also been listening to Mr. Frank Sinatra lately so I'll leave you with this...

One part structure, one part "out there"

What is the formula for innovation?

Today on the radio show, This American Life, there was the story of a scientist and a sound expert working together to find a cure for cancer by identifying and testing certain tones that would kill cancer cells without harming surrounding cells. This uncommon partnership has shown extreme promise of finding a cure through this method and yet has not been able to prove their findings. Much of this is due to the mental models that each man holds. The sound expert is open to the promise of outside the box ideas and sees progress as proof, while the scientist must follow strict protocol to produce any results that are worthy of his peers. Arguably, neither would get as far as they have without each other and the skills and mental models they bring.

I have seen this scenario in many teams that I have worked with and worked on. It usually starts out like magic. There is a buzz when passionate people driven to find a solution get together. When I started my business 3 years ago I liked to refer to this phase as a time when we had the naive audacity to do whatever the hell we wanted. It's fun and also dangerous.

The next phase is usually defined by some level of conflict. This has the potential to break a team but also allows for the opportunity for each individual to dig deep and work through underlying issues. This is where it's important to remember that solving problems is a challenge, you like challenges, conflict is challenging, and the team was formed with a passion and a challenge to find a solution. Conflict can be scary, it is also crucial.

The third phase, hopefully, is where you are able to work through differences and find a balance for working together. This is where structure and out there thinking find harmony and again see the best of each other. Hopefully this lasts for a while before you enter phase two again.

What I believe to be the most important moment in this process is the moment directly following the deepest of conflict. There's a glimmer of hope in the distance and a light goes off in your head. This is a beautiful moment when your drive is recharged and you can see clearly what has happened, why, and what comes next. This is where you get your audacity back. This is where innovation happens.

This process is not limited to teams. In fact, this is the exact scenario that I went through while studying abroad. This is the process that defines the stages of culture shock. First you are enthralled by all things new. Second, you don't have a clue why this culture does anything the way they do. And finally, you find a balance and are able both enjoy and function.

The important moment I spoke of earlier is something I have witnessed when working in communities who are struggling with extremely tough issues, wicked issues. Some of these communities have been engulfed in conflict and this moment occurs after they believe their community has hit rock bottom and that something must be done to avoid what had happened. If this moment can be captured and leveraged, scaled and spread, these communities have the ability to make profound change and find innovative approaches to solving these wicked problems.

Everyone is talking about innovation. The word is everywhere. Innovation and the ability to create, solve problems, and design new products and efficient systems is seemingly what every company and organization strives for. I read two articles this week in Harvard Business Review about innovation and the barriers that companies face while working to integrate "it" into their culture.

I also read an opinion piece signaling the death of design thinking (a process that has helped companies innovate) and another rebutting that statement.

So, what is the right formula? Are we anywhere near finding the proper and most effective system or structure to allow for innovation?

I believe innovation is much like sustainability as it is a process rather than a goal.

Human beings, thanks to our large brains, use culture to adapt to new challenges. Our collective intelligence grows and our values morph as we move through time.

Culture is always changing and culture is always innovating. Some more than others and some better than others. Not only do the fittest of individuals survive, the fittest of cultures survive, they sustain.

I believe we are in a constant process of innovating to sustain and sustaining to further innovate. It's a constant push and pull and between the forces of consistency and change, rooted and airborne, structure and "out there" thinking.

As we strive to instill the process of innovation in the culture of our businesses and communities I hope that we be aware of the moment that hope seems reasonable again and when the marriage of rooted structure and a crazy idea make sense and is visible.

I don't have the formula but I believe that innovation is a constant force as well as a process that cannot be forced. Innovation is something that must be given the space to grow and is something that is happening all around us.

An innovative idea is allowing me to finish this post at 30 thousand feet flying from Portland to Boston. And perhaps we'll need another innovative idea if we realize the impacts of sending wifi signals 30 thousand feet into the air across our entire country or when we simply want it to work better.