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When you hear the word “leadership,” do you think of a particular person?

If you’d been asked that question anytime before the 1900s, chances are you’d think of an accomplished politician or a battle-tested general. These were the people leading society for most of recorded history. Today, you might have someone else in mind.

Since the industrial era, the US has birthed a pantheon of founders who’ve arguably led our society as much as any statesman or president. We put Rockefeller and Ford right next to Lincoln and Jefferson. Think about it; these guys haven’t just changed the US; they’ve changed how the entire world lives and does business.

Founders of successful companies today command even larger amounts of capital and power than JD and Henry. With the rise of social media, they are often thrust to the forefront of their brands and the public, whether they like it or not. Some manage the responsibility better than others.

In my opinion, the best businesses use all that capital, manpower, and name recognition to do more than simply make a profit. By leading with authenticity, inspiring positive action, and influencing their brand’s vision for innovation – they try to make a change.

I wanted to take a minute to reflect on some modern founder-led brands I think are doing a killer job of creating unique, world-changing businesses and company cultures. I also want to discuss the lessons I have learned from them.

Elon Musk – Tesla

When talking about founder-led brands of the 21st century, it’s hard to pass over electric vehicle manufacturer Tesla and its outspoken CEO, Elon Musk. Love him or loathe him, he belongs in any conversation on influential founders.

While Musk isn’t technically the founder of Tesla, he is one hundred percent responsible for the company’s direction over the past decade. I think two of the strongest leadership points for Musk are his focus on branding and innovation.

Tesla created showrooms and charging stations long before his business had the sales to justify the expense. People saw the name Tesla everywhere, got curious about it, and now that’s paying off big time. Tesla today is at the forefront of the EV industry while all the other car companies play catch-up.

Behind the scenes, Tesla was also early to create a vertically-integrated supply chain – giving it almost complete control over its product and logistics. That’s another feature with a hefty upfront price tag but paid off when the pandemic hit. Now the biggest automakers in the world are rushing to copy that model.

Musk arguably even convinced China to deregulate foreign ownership of automotive companies. That’s hard to prove. However, China changed its rules around foreign ownership of EV companies shortly after he refused to enter the country.

Arguably, Tesla today is one of the frontrunners in redefining how traditional companies run. Musk is known to hate bureaucracy and traditional hierarchies. He hires other people to take care of bureaucratic processes for him.

Musk is also known for hiring relatively young, hard-working employees into high-power management positions in the company and letting them prove themselves. That inspires extreme loyalty from his employees from an early age. Musk’s focus on efficiency and rejection of traditional hierarchies has sparked a small revolution in tech companies.

Finally, I respect Musk because he has goals beyond showing year-over-year growth to shareholders. That’s hard to do day in and day out.

Sara Blakely – Spanx

Sara Blakely is an example of a founder with her hands in every part of her business, from product creation to sales. Most importantly, she created an authentic company culture with values she felt the business world lacked.

For those who know her story, Spanx very nearly didn’t happen. Blakely pitched her slimming undergarment to multiple women’s brands run by men. Most told her it would never work.

It might seem silly now, but men used to think they knew women’s fashion better than women. It wasn’t until one executive gave Blakely’s product to his daughters to try out that he agreed to start stocking Spanx. It’s a great example of how businesses can make a lot of money by listening to their customers.

Besides founding a women’s clothing company that sells products women want, Blakely strived to bring “feminine energy” into the workplace. I saw this poignant quote from her in an article:

“Twenty-one years ago when I started Spanx, I ended up in the paper in Atlanta, and I was at a cocktail party and a couple of guys came up to me and they said, ‘Sara, we read about you. Congratulations! We heard you invented something.’ And I said, ‘Yes I did, I’m so excited.’ They said, ‘Business is war,’ and then they pat me on the shoulder and they kind of laughed at each other. I went back home to my apartment that night. I was 29 and I just thought, I’m not going to war. I’m going to do this very differently. I’m going to honor a lot of feminine principles — intuition, empathy, kindness. Just allowing myself to be vulnerable through this process. And of course, a lot of the masculine energy has helped me also — it was a balance. But I wasn’t going to do it by squashing the feminine.”

Blakely worked hard to create a sales-oriented company culture that was purposely welcoming from that point forward. She regularly scheduled “oops meetings” where employees could stand up and say how they messed up and turn it into a funny story. At Spanx, it was okay to make mistakes and learn from them.

Blakely wanted everything about her product to be fun, including the way it was sold. She created a mandatory boot camp for salespeople, which, among other things, requires employees to perform standup comedy. Little things like that resonated with people and made Spanx synonymous with “fun.” Even famous actresses were flashing their Spanx on the red carpet.

The lesson we can all learn from Spanx and Blakely is that fun and positive energy are great marketing tools for any business. Many companies try to push a fun culture publicly without any authentic leadership that genuinely exemplifies that narrative, they won’t have the same effect. Blakely’s story of Spanx is not just a story of the brand but a story of her life and the experiences that shaped her vision and goals.

Jack Dorsey – Block (FKA Square)

While better known for founding Twitter, Jack Dorsey has recently been in the news for his move to solely running payment processing business Block. I admire Dorsey because he radically encourages his teams to think differently about how they work.

Dorsey is known for optimizing ways to stay productive and focused throughout the day. He manages through unconventional tactics like communicating only through voice memos on his phone that he runs through transcription apps. He says this prevents him from being sidetracked by distractions on his computer. I think that kind of mindfulness is necessary now more than ever.

Dorsey tries to bring this level of focus to his interactions with his employees too. I saw a great quote from him in this article discussing computer-less meetings at Block.

“When phones are down and laptops are closed, the team can discuss any issue at hand without distraction. We can actually focus and not just spend an hour together but make that time meaningful — and if that time is 15 minutes, then it’s 15 minutes and then we move on with our lives.”

Besides limiting distractions, Dorsey is known to walk five miles to work daily, theme each day, and create detailed agendas and goals for each team meeting. In his former company, Twitter, the culture was frequently described as a space where employees could speak freely to management about things they wanted to change.

On that subject, Dorsey has been known to push hard for employee control in his companies. Perhaps ironically, he was also quoted saying he wants Twitter to break away from its co-founders’- vision and control, calling founder-led companies “severely limiting.” However, it still seems he has some sort of vision for the world that he wants to bring around via Block.

His business goals are visionary, pushing the boundaries of innovation in the financial world.

Dorsey is a known cryptocurrency enthusiast but had pushback from the Twitter team, including his CFO, about making a crypto-centric product. His move to payments processor, Block, seems to be a bid to follow his passion and exert his vision on the world.

Block has since made headlines for being extremely bullish on cryptocurrencies, while many have expressed doubts. Dorsey even changed the business’s name to Block to better reflect its focus on blockchain and famously purchased $50 million worth of Bitcoin in 2020. All the while, Dorsey has been quietly creating arms of his business in the hopes of improving BTC’s usefulness. That may pay off down the line.

Melanie Perkins – Canva

I identify strongly with Melanie Perkins, co-founder of graphic design SaaS, Canva. Besides being roughly the same age, we both came from nondescript beginnings with no background in entrepreneurship or tech.

Canva is an excellent example of a business created by becoming intimately familiar with a customer problem and executing. Perkins spent years teaching people how to use design platforms like Adobe Creative Suite because they were so complicated. Taking that knowledge, she started a simple product to help customers create high school yearbooks. That expanded into a super app covering every aspect of design.

This super-app has unlocked a way for millions to learn design and produce high-quality content at any skill level. The cost to use Canva is many times lower than anything else on the market.

While Canva is an amazing product, what I like most about Perkins is that she believes business serves a higher purpose than maximizing profits.

When she was suddenly thrust into the limelight with a $40 billion valuation, people were even more impressed by Perkins’ philanthropic goals. She vowed to donate a 30 percent stake in Canva to a charity dedicated to eliminating poverty (about $12 billion). She is also known to regularly fundraise for 25,000 different nonprofits through her app. She doesn’t just inspire people with words, but by actions, she’s actually taking.

Canva is very public about its ethos. I like their values because they are general yet avoid the jargon many companies fall into. They are:

  • To be a force for good and empower others;
  • Pursue excellence;
  • Be a good human;
  • Make complex things simple;
  • Set crazy big goals and make them happen.

Besides revolutionizing how modern businesses design and harness goodwill marketing, Canva was also one of the forerunners of the remote work trend.

Most of Canva’s “Canvanauts” worked from homes worldwide even before the pandemic. Canva showed a lot of tired old businesses that you could still run a successful company without having employees in the office 24/7.

How I Try to Learn From the Best

Finally, I want to talk about what I am trying to contribute to my team and society with my current business, startup acquisition marketplace, MicroAcquire.

As I’ve mentioned, I think it is very much on myself as a founder to set the tone of my business – and that starts with who I hire. When I’m searching for new employees to join the “#Micromafia” I not only look for productive workers, I look for people I genuinely enjoy spending time with. It’s the best feeling in the world to go to meetings where you leave thinking, “That was really fun.”

Besides creating a great team, I’ve tried to address another problem I see again and again at major tech companies: employee burnout. There’s a reason the average tenure of a tech employee is three years.

I love working on startups. It’s like playing a video game for me, and it’s probably why I’m a founder. That said, I know my employees don’t always feel the same way. As CEO, I make sure my team knows I want them to live their lives outside of MicroAcquire.

On the business side of things, I take cues from the best. Like Musk and Dorsey, I want to preemptively create features that I know our customers will love. I knew people wanted an easy way to sell their startups because I wished I’d had one back when I was doing it.

Like Spanx and Tesla, I also strongly believe in the power of innovative branding – and I make sure we spend in areas that will give us significant returns down the line.

For example, we’ve made it easy to get MicroAcquire merchandise online completely free. The extra exposure we get from tech people rocking MicroAcquire t-shirts is more than worth the cost. We also created our own media publication Bootstrappers.com to tell the founder stories we thought major publications had missed. That’s been a huge hit with our customers, who also happen to be founders. These people traditionally have had to spam inboxes and pay for press because they didn’t raise billions in funding.

Finally, like Blakely and Perkins, I also want to actively listen to customer feedback and make sure we create a necessary and desired product. That’s why I make sure we’re constantly engaging with our community both on our website and social media. Many of the features we’ve added are just things we’ve heard mentioned multiple times from customers.

So far, I love the community we’ve created online and in the office. I don’t claim to have the winning formula, but I feel we are making a real difference out there. We’re lucky to live in a world with so many smart people getting their ideas out and making a positive change in the world.

 

Featured image via Unsplash.

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Does it ever cross your mind that praise can be negative? I guess not. After all, it looks harmless and seems to be quite effective. Conventional wisdom says that if you praise people, they are motivated to do better.
People who have been praised throughout their life by their well-meaning parents, friends, and teachers for their talent and smartness or those who have experienced extreme focus on talent and smartness throughout their childhood learn to value only intelligence. No wonder when these people enter the workforce, they continue to seek approval and demand praise every step of the way.
Every opportunity is a measure of their intelligence — do I look smart, how will I be judged, what if others find my ideas dumb. With a single-minded focus on validating themselves, all their actions are rooted in establishing their worth. Every mistake hurts their reputation and every failure is a reflection of their competence. They care less about learning and more about proving themselves. Their sense of morality sometimes takes a hit as they resort to brutal behaviors — demeaning others by yelling, insulting, controlling, or taking undue credit — all in an attempt to boost their self-esteem.
Carol Dweck, professor of Psychology at Stanford University summarised this unfortunate reality from Morgan McCall’s book High Flyers:

People often like the things that work against their growth. . . . People like to use their strengths . . . to achieve quick, dramatic results, even if . . . they aren’t developing the new skills they will need later on. People like to believe they are as good as everyone says . . . and not take their weaknesses as seriously as they might. People don’t like to hear bad news or get criticism. . . . There is tremendous risk . . . in leaving what one does well to attempt to master something new.

What Do Organizations Do with Such People?

They feed and promote this mindset. They praise people for their brilliant ideas conveying the message “we value talent and smartness.” They shower people with rewards and bonuses for their achievements communicating to everyone else around “all we care about is success.”
What happens when these people take on a leadership role? Their mindset of valuing brilliance above everything else amplifies leading to disastrous results. History is full of leadership fiascos with great promises that turned out to be the biggest disasters. This article from Malcolm Gladwell in The New Yorker is as valid now as it was 18 years ago. Describing the talent mindset at Enron and the consultants at McKinsey who wandered the hallways at the company’s headquarters, he points out “They were there looking for people who had the talent to think outside the box. It never occurred to them that, if everyone had to think outside the box, maybe it was the box that needed fixing.”
He also talks about the impact of an environment that values innate talent and what happens when times get tough and that self-image is threatened “They have difficulty with the consequences. They will not take the remedial course. They will not stand up to investors and the public and admit that they were wrong. They’d sooner lie.”
Really, is praising people for their intelligence and achievements the only way to develop people who will be the leaders of tomorrow? Is there a better way out?
What if we praised people for their hard work, for their ability to persist despite failures and setbacks, for taking initiatives to build new skills, for standing up to their mistakes, for believing in their growth, and implementing the right strategies to overcome their shortcomings. What does this kind of praise tell them?
It tells them the value of effort in building abilities. It teaches them the importance of implementing the right strategies to solve problems. It encourages them to seek help to make progress on their task. It creates a passion for learning that’s not driven by the need to look smart, but with a desire to cultivate skills, to stretch themselves to grow.
When these people take on leadership positions, this mindset guides them to put the well-being of the company and its people before their own needs, to place value on teamwork over individual accomplishment, and to foster growth and development of their people.

As growth-minded leaders, they start with a belief in human potential and development — both their own and other people’s. Instead of using the company as a vehicle for their greatness, they use it as an engine of growth — for themselves, the employees, and the company as a whole.
– Carol Dweck

Unlike leaders who pull their companies down with their focus on brilliance, these leaders lead their companies into greatness and gratitude filled in their own hearts and those of the people around them.
Choose your praise carefully as you will see the tremendous benefits in praising for growth over brilliance.

When Leaders Focus on Brilliance

They live in a world of personal greatness and entitlement, vie for labels, and will do anything to boost their image. Instead of building a long-lasting company, they spend time and money on enhancing their image.
With the constant need for validation, they use people in the company to feed their egos and showcase their superiority. Everything is about pleasing the boss. They surround themselves with people who boost their self-esteem. Agreement earns them admiration and disagreement is an attack on their intelligence. Instead of hearing people out, they punish dissent and shut people down.
They pounce at the less talented for their lack of intelligence and find those who are more talented than they are as threatening. They mistreat employees, yell, insult, control and abuse them into their way of doing things. They feel better about themselves by making other people feel worse. Employees worry about being judged all the time. When people are ridiculed for mistakes, they soon learn to keep their heads down, stop putting their critical thinking skills to use, and give in to groupthink.
Their belief in their superiority blinds them to see reality. They turn a blind eye to complaints, ignore warning signs, and fire people who tell them what they don’t want to hear. Their decision-making criteria are based on what would make them look good as opposed to what’s good for the company long term.

What happens when a leader refuses to confront the brutal facts? “The minute a leader allows himself to become the primary reality people worry about, rather than reality being the primary reality, you have a recipe for mediocrity, or worse. This is one of the key reasons why less charismatic leaders often produce better long-term results than their more charismatic counterparts.
– Jim Collins

Since success and failure are a part of their identity — success means they are smart and failure means they are not — they find excuses and blame others for failures instead of taking personal responsibility. Instead of investing in the future growth of their company, they play safe with fear of failure, become less responsive to challenges from competition, go with what’s tried and tested, and refuse to take risks. Why take up the challenge that can hurt their reputation? On the other extreme, they may not shy away from crossing ethical boundaries to beat the competition at all costs. Success is what they are after and it doesn’t matter how they get it.
With more focus on talent and less on potential, they do not invest in mentoring and coaching employees. Instead of putting practices in place to develop employees and help them collaborate together, they make them compete against each other.
Carol Dweck sums up their brilliant mindset “My genius not only defines and validates me. It defines and validates the company. It is what creates value. My genius is profit. Wow!”

When Leaders Focus on Growth

They operate with a learning mode. They don’t claim to be genius but promise to invest in development, their own development, and the development of their people. The drive and enthusiasm to grow their companies make them adopt long-term strategies over short-term tactics. They aren’t in the game to boost their ego or establish their self-esteem. It’s the pure joy of shaping the future of their company that excites and motivates them. More than prestige, they are in it for the challenge.
They understand that the path to success goes through failure. Why lose the opportunity that can drive their future growth? So instead of hiding behind their failures, they face them head-on. Failures don’t define their competence, they are glaring moments of self-reflection. They are opportunities to build skills, explore possibilities, experiment, and invest in the promise of a better future.
They lead with vulnerability. They accept mistakes to shift the focus in the organization from hiding mistakes to finding solutions. When they don’t know something, instead of pretending to hide their ignorance, they say “I don’t know”. These three powerful words show humility and self-confidence. To make decisions, they invite others to share their opinion which promotes the culture of constructive criticism. Since they do not connect their identity to their opinion, more value is placed on seeking the right answers which require open disagreements and championing flexibility of opinion over their sense of righteousness.
Difficult situations make them uncomfortable, no doubt. Instead of letting their discomfort get in the way of meaningful conversations, they embrace it. They choose to look past their discomfort in the value that these discussions provide — saving a lot of time that can be wasted due to stress and anxiety that comes from misalignment of expectations and lack of clarity of purpose.
They are tough but compassionate. They do not shy away from giving critical feedback while also challenging the people in their organization to step outside their comfort zone. They empower people to make decisions with the right channels of feedback to assist in better decision-making in the organization.
Leaders with the growth mindset operate with what Lou Gerstner, who turned IBM’s fortunes around by saving it from near bankruptcy said “Hierarchy means very little to me. Let’s put together in meetings the people who can help solve a problem, regardless of position.” Not blinded by reality, they focus on finding solutions that will push their company forward. This requires keeping an open eye to change in market trends, identifying and investing in future growth areas, and taking calculated risks.
With a focus on potential and growth, they invest in identifying and building future skills of the organization — skills that will be useful during difficult circumstances giving them an advantage over the competition. They foster productivity through coaching and mentoring, place value on teamwork by encouraging collaboration and defining shared measures of success.
Warren Bennis, a scholar, author, and widely regarded as a pioneer of the contemporary field of Leadership studies, writes in Organizing Genius:

Leaders are people who believe so passionately that they can seduce other people into sharing their dream.

His most admirable view on leadership says:

Good leaders make people feel that they’re at the very heart of things, not at the periphery. Everyone feels that he or she makes a difference to the success of the organisation. When that happens people feel centred and that gives their work meaning.

What kind of leaders think like this — those focused on brilliance or the ones driven by growth?
Previously published here.

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