innovation

Where Winners Spend their 2%

I don’t know if you remember but for close to a decade, starting around the mid-2000s, people couldn’t shut up about Steve Jobs. This seemed to coincide with the release of the iPhone, YouTube, and social media, which makes sense.

All of the content seemed to herald Jobs as Tech-Jesus. The iPod was the second coming of the WalkMan, but better, and iTunes seemed to have solved the music industry crisis brought on by Napster and P2P sharing sites. Truly, Steve was a god among men. I was unmoved by all of it.

Maybe it was because of where my head was at the time but it all seemed a little fan-boyish to get so wrapped up in a dude that owned one outfit. And they were making a cell phone? Without a keyboard? Way to waste a billion dollars, my dude.

Except it was everything. But I never appreciated why before I saw this video.

My biggest takeaway was Steve discussing how they looked at Information Technology and how companies were obtaining it. All of them spent around 2% on IT, but they differed in where the bulk of those purchases went. Not-so-successful companies spent it on management productivity. Successful companies spent on operational productivity.

What does that mean?

It means that regular joes were focused largely on incremental improvements to how they already did things. A better email client, server, PCs, etc… Successful companies were focused on applications that could do repeatable and automatable things for them. The second requires more effort than buying something off the shelf. Applications had to be made and coded at a time when that wasn’t an easy thing to do. Steve focused on applications when the vast majority of people had never heard of the term.

The iPhone dominated with the advent of apps. Your phone could do things now. Your phone could execute tasks that tangibly made your life better. For at least three years, you couldn’t go a month without someone telling you about the next killer app you needed to download. What could the Blackberry do? Bang out long-winded emails with ease? That was about it.

This especially resonated with me as that’s where our focus is; automate and create custom functions that add continuous value. In our business, competitive advantage looks like high renewal rates and lower operating costs, and the best way to get there is with great systems.

RIP, Steve. At least one of your movies was really good.

If you don’t execute, you don’t eat.

If you don't execute, you don't eat.

This sums it up perfectly. EXECUTION is ALL that matters. Apologies to the delicate sensibilities out there, but all the warm fuzzies of best intentions won’t sell SQUAT. Positive thoughts and “hard work” alone won’t move product or make a difference if nothing actually, HAPPENS.

If you make a difference, a REAL difference, then something should be DIFFERENT because you were there. Sounds simple, right? Are the material conditions on the ground different because of something you DID? If so, you made a difference. If not, hate to break it to you, but we’re still waiting.

I’m flummoxed and fired up when a solid sounding strategy never makes waves. It stays perfectly conceptualized inside the minds of the creators and on the tongues of the braggarts and blowhards – but never encounters the harsh light of actually being birthed into the world.

I get it. The world is messy and there are question boxes to outnumber those in the Mushroom Kingdom. There are as many threats, too. If you’re scared, if you can’t get over those fears to bring something to life, please do the rest of us a favor and politely move out of the way. There are things to make and worlds to conquer and markets to impact.

Repeat after me: “If you don’t execute, you don’t eat.”

You can’t sit around talking about how cool it would be to kill a wholly mammoth, and survive. At some point, one of you is going down. Stop talking and pick up a spear. Stop telling me about your responsibilities and tell me about what you changed – what DIFFERENCE you actually made.