Betting the farm on new products is in the best tradition of technology and Silicon Valley

Intel bet all its chips on the microprocessor business.  In hindsight, it was brilliant.

This was an instructive piece about the present, past and future of technology products.  Indeed, it addressed the whole innovation ethos of Silicon Valley.  Technology has hastened the tempo of change but there is nothing new about the way today’s tech king-pins can so quickly find themselves looking up at the new king-pin.

As part of this constant change, it’s long been a given that you must cannibalize products in order to sustain yourself into the technological future.  Likewise, you must be ready to roll the dice on some dicey propositions when it comes to markets and technologies. At least three of today’s tech titans, who remain hands-down leaders, made bet-the-farm decisions in their respective histories when it became apparent that staying the course would lead them right off a cliff.  This is apparent in retrospect only, however.  At decision time, you don’t have the luxury of hindsight.

Apple: The move into entertainment, in retrospect, seems logical.  The iPod is a computer after all.  As is the smartphone.  But this was still a ballsy move.  Might not seem like it today. But it was. Result: Apple in 2012 is a consumer technology brand, and all that this implies.  But to get here, from there, was hardly the slam-dunk it might seem.

IBM: In 1964, when Big Blue owned the business market for big, honkin’ mainframes, a smaller machine was a radical departure.  This was the year it introduced the revolutionary System/360, the first large “family” of computers to use interchangeable software and peripheral equipment. This concept was a huge step away from the status quo.  And IBM was not known for radical departures. At the time, Fortune magazine called  it a “five-billion-dollar gamble”. There was no guarantee that computer compatibility, a concept now taken for granted, was the wave of the future. If the S/360 failed, IBM’s existing computer product line would be quickly overtaken by competitors. To succeed, IBM would have to cannibalize existing, revenue-producing computer product lines and migrate customers from their current IBM systems to a wholly new, unproven product. Both scenarios were fraught with risk. When IBM committed to developing the System/360, it was bet-the-company time.  The rest is history.

Intel:   In the early 1980s its business was dominated by dynamic random access (DRAM) chips.  By then, however, increased competition from semiconductor manufacturers in Japan had begun to cut into the profitability of this market.  It was time for a bet-the-company shift, which is exactly what CEO Andy Grove did.  Intel bet all its chips, so to speak, on the microprocessor business. This also fundamentally changed the company’s business model.  By decade’s end, the bet was paying off.  Supplying IBM and its competitors with microprocessors, the engines of personal computers AKA “Intel Inside”, the company would begin a ten-year run of unprecedented growth.   But it was never a “gimme”.

How to create a killer slideshow: use fewer words and slides

One of our security-software clients had us come in last week to help craft a pivotal presentation to one of their new customer’s blue-chip partners.  We ended the day with a killer deck of slides — and a reminder of what an effective pitch is and isn’t.

Fortunately, our client understood the principles of Guy Kawasaki’s 10-20-30 rule: no more than 10 slides that support a 20-minute stand-up and utilize 30-point type from the Arial font (which studies repeatedly show is easiest on the eyes).

The secret to turning slide-ware into a weapon of mass persuasion?  First, understand that a powerful pitch has power because it’s been well rehearsed. And there are no shortcuts.  Second, do not make the mistake of cramming the narrative of the presentation onto the slides. Because audiences read faster than they can listen, they’re skimming the screen while you’re talking. They are not listening what you’re telling them.  You get them to listen by keeping the focus on yourself and telling a good story that has a beginning, middle and end.  Here’s what we advise:

1. Internalize the psychographics or temperament of the audience. Who are you addressing and why are they interested in this topic?  What are their foremost concerns?  What kinds of appeals would be most compelling to them?  What data or evidence substantiates your position? Why would this resonate? What kinds of points can you make that would cause them to mentally applaud you and be persuaded that you have their interests and issues in mind?  That you are speaking their language and addressing their issues — that you are essentially one of them. Only when all this is clear and comprehensible are your ready to create content.

2. Clarify the purpose of the pitch and be clear on its objective.  Given the audience, what do you want from them? What idea do you need to convey? Hint: you want to arouse a discussion in which you can elaborate and clarify your leave-behind message. This is the real purpose of any presentation.  You want to extend the wrap-up section of the formal pitch, in which you told them what you told them, so you can launch into a useful conversation or Q&A where you can continue telling them. And presumably encourage their buy-in or support, while getting the skeptics to further consider.

3. Storyboard the pitch.  In no more than three or four general sections outlined on a whiteboard, in sequential blocks, outline the content that tells the story: an introduction that describes what they’re going to hear, a main section or two that lays out your points and presents substantiating facts and figures, and a concluding section that re-states and summarizes the salient points and substantiation.

4. Transcribe key takeaways of each storyboarded section or “chapter” onto the slides, but in very brief, concise points that highlight the story you are telling.  When you present, do not merely recite the content on the slide.  Let the slide underscore your narrative. Use body language and tone of voice to emphasize key points (not animation).

5. Rehearse, dry-run, and rehearse again. And again.  Screen the pitch to a preview audience of devil’s advocates.  Insist on ruthlessness. Tweak your content and delivery. You will be rewarded by the end-result.  Everyone knows about Steve Jobs’ copious hours of rehearsal. This is how and why he sounded like he was speaking contemporaneously, coolly off-the-cuff. It was also mission-critical to his success as a communicator. Jobs was prepared. And as far as holding the attention of an audience, he’s a pretty good role model.

How do you prepare for presentations?  Was your last one as effective as it could have been?  If you could do it over, what changes would you make?

(A condensed version of this post appeared today in The Write Stuff, the blog I write for at Write Angle Inc. )

Steve Jobs’ failure to connect his own dots is everybody’s loss

In the end, it was a matter of faith. One that was sadly misguided. Revelations in Walter Isaacson’s biography of Steve Jobs is full of more irony than even Shakespeare could have penned.  Jobs, the perfectionist, opts out of medical best-practices to deal with what appeared to be a treatable cancer. Instead, as critical months pass, he relies on diet and visits a psychic.  Jobs, the street-smart business practitioner and fierce boardroom player, chooses “magical thinking” over the medical data. Never a man of faith, he adopts a kind of faith-healing as the cancer progresses and, ultimately, consumes him.

He can be excused for reliance on his instinct. It served him well in life. Indeed, it served all of us.

I only know what Isaacson has written about this and what’s been reported.  And the only thing I know about cancer is the one I’ve had to deal with.  Still, the the ironies are mind-boggling.  Like his claim that his uncommon insights were the result of his experience in having “more dots to connect” — and then failing to connect the most crucial ones when it came to his health. The force-of-nature personality that propelled him to so much triumph turned out to contain the seeds of his own demise: his reliance on a ferocious will that would betray him when he was most vulnerable.  A vulnerable Steve Jobs? Not only ironic but oxymoronic.  We could have used more of that force and more of those triumphs.  It was my privilege–not always pleasant but never boring–to have worked for him in the early days.  Never thought I would say this, but, he will be sorely missed.

When to ignore conventional wisdom in business

Eschew the glam on Product Launch Day. (Opt for Levi’s and a black mock-turtle?)

You have to hand it to Apple.  Again and again.  I can’t think of another company whose product intros can consistently wow far more people than they disappoint, especially when the company in question is such an uber-profile vendor with an iconic, rock-star CEO.  And when the intros are built up for weeks, even months, like over-hyped movies.  Remember, though: Apple has a built-in advantage here.

OK, so how do they do it?  More important, can you replicate it?  Yes, but only if you’re comfortable doing business the Apple way. For starters, Apple doesn’t stress over conventional wisdom.  Its users don’t give a flying mousepad about “open systems”.  They like closed ones. The point here is that Apple markets and sells to its tribe, first and foremost, that legion of cult followers built and cultivated over many years, the way Jerry Garcia played piper (pun not intended) to Deadheads .  Apple has a rabid cheering section that would fill Jerry Jones’ new stadium in Texas to overflowing and that makes fans you see at an NFL or NHL game seem casual by comparison.   Next, don’t bet the ranch the day you launch. Don’t be deluded that a big spike in hits will convert into sales and instant market leadership. Please your hardcore fan base first and foremost.

Your true north is to stay mindful of the things a company, brand, or product does that impress you.  Go out there and do those kinds of things yourself.  You always know when a company is talking to you, not at you. How? It’s whenever you listen and pay attention as a result.  Nearly 30 years ago, Steve Jobs was obsessed by the things Sony and Mercedes did with their products and marketing to create their cult-like followings.  Take a close look at Apple.  You’ll see the resemblance today.

It’s Apple’s Tablet but you’d think it was coming from Moses

The guy’s amazing.  Just freakin’ amazing.  Every year, same thing.  Same buzz that builds to a deafening roar.  Same anticipation. Same spontaneous-combustion hype.  Don’t get me wrong.  When Steve Jobs is no longer part of the tech scene there will a void out there like a black hole. May he live long and be part of the landscape for at least as long as I’m around.  Otherwise, what/who is there?  Marc Benioff? Carol Bartz?  Eric Schmidt?  The Twitter dudes?  Not exactly the same league.  I love Apple.  The value prop, the hype, the joie de geeq.  They get it right.

Five biggest mistakes made by salespeople, marketing people, job candidates, and presenters of all kinds

With apologies to Carmine Gallo and Steve Jobs, below are the five biggest mistakes that salespeople, marketers, job candidates and presenters of all stripe make when they’re at bat.

Trying to sell everything except the most salable (read: imagination-capturing) thing.
Gallo observes that Steve Jobs doesn’t sell products. He sells “tools to unleash your creativity.” Tell your prospect how you can help them reach their goal.   And keep it simple.  Jobs has a one-sentence description — or vision — for every product he introduces.  Just as every product or political candidate needs a vision, so does every salesperson or job candidate.

Breaking the rule of three.
Researchers have found that people think in “chunks” and remember no more than three or four characteristics of anything.  That’s why the best presentations have no more than three leave-behinds.  Make it easy on your audience.  Think about the best speeches or pitches you remember. Chances are, the speaker kept it pretty simple.  It’s why you remember it.  Which leads to the next mistake…

Making things complicated.
DaVinci said that simplicity is the ultimate sophistication.  Whose gonna argue?  Seriously, clutter clouds thinking and memory.  You want to stand out. Be memorable.  No one was ever bored into buying anything.  Strive for simplicity in oral communications, presentation design (read: Powerpoint slides) and everything else.  This includes your resume.

Failure to prepare.
Ever notice how the best musicians, actors, athletes, dentists or carpenters always make it look easy?  Author Malcolm Gladwell reminds us that the Beatles, before their debut in the U.S., had thousands of hours of gigs–essentially rehearsals–performing the same tunes night after night for months.  It took them many years to become “overnight sensations”.  Hey, if Steve Jobs thinks he has to spend weeks rehearsing every segment of his keynote presentations, it’s probably worth it.  How many hours a day does Tiger Woods practice putting?  How much time should you put into rehearsing responses to questions likely to come from a prospective customer? Interviewer?  Member of the audience?

Indifference
If you’re not excited, animated, and/or energized to the point of visible passion about your subject matter, how the hell can you expect anyone else to be?   Put yourself in the shoes of your listener or interviewer.  If you were them, to what would you favorably respond?  What would have you (a) wanting to hear more or (b) resisting the temptation to look at your watch?  What would make you want to buy from, hire, or sign up with you?

Happy 30th, Walkman.

Book excerpt below from NET Value: How to Profit As the Digital Culture Changes Your Value Proposition by Steve Turner and Stan DeVaughn (2008):

“It was no secret that (Steve) Jobs had been spellbound for years by the offerings of Sony Corporation and the way the Japanese consumer electronics giant seemed to churn out one irresistible product after another.  (Stan) DeVaughn remembers him being particularly enthralled by the Sony Walkman, the iPod of its day, and as “whole” a product as technology (and the recording industry) would permit at the time.  Looking back, DeVaughn can only wonder what Jobs was thinking and planning as the chairman was furiously launching the Macintosh, surrounded by Apple employees with their Walkmans clipped to their belts and wired to headphones as they grooved to Men at Work or Talking Heads. “

Indeed.  The Walkman was the iPod of its day.  And, like the iPod, a “whole” product — everything you need is already there to begin enjoying the benefit you paid for.

All you need to know about Steve Jobs

In today’s Silicon Alley Insider, there’s a salute to Steve Jobs.

The piece, and the comments it generated, say it all.  http://www.businessinsider.com/the-life-and-awesomeness-of-steve-jobs-2009-6

Not the easiest guy to be around.  Nor the most pleasant.  But to focus on his sharp edges, or the decades-long trail of broken glass he’s left behind, is to miss who and what this guy and his legacy are all about.  I can’t think of anyone who can match his commercial accomplishments.  Not even close.  And that’s what we need to focus on here.  Commerce.  Pure and simple.   Can anyone deny, dismiss or even minimize the  thousands of “Jobs jobs” created because of this guy’s drive, obessiveness, pushiness, crankiness and prickliness?  Sheer force of will?   I’ll admit I don’t look back with any particular fondness on my brief time associated with him at Apple.  I can remember times trying to avoid him.  But give the guy his due, because he’s due plenty.   He’s created value, wealth and Jobs jobs.   Long may he flourish and prosper.  If he does, many others will too.  I can think of worse things.