What a safari teaches us about Strategy

Lions, Crocodiles and Buffaloes

Go ahead, despite the dishes,

Alicia

 PD: you can make your comments here

PD2: I'm now a published author amazon

Sydney, March 1st, 2008

Everyone a changemaker

San Jose de Costa Rica, Jan 10^th, 2007

The three costs of anything

I just spent some time in Costa Rica, with my sister Gaby in a small town called Jaco. Juan Carlos drove me back to the airport. He has started several businesses, like myself. Now he thinks he’s found his big hit: a transportation company for gringos. He was indeed so good that I left a great referral on tripadvisor.com. As I spoke to Juan Carlos, I realized that he does not know about the three costs of anything, and could underestimate the importance of spending the time –and resources- designing and creating programs. Learning to understand those costs helps manage resources, and more importantly, prevents failure. YES! The reason why so many people stop developing their ideas or getting into business all together is that they have no clear way to evaluate its potential. Think about it… If you need to divide your results by your effort (or your return by your investment) there is no way that you would embark into any venture without knowing the real costs of anything! Think about the use/cost of your time. If you assume you are spending nothing then your return is huge or infinite, if you assume you are spending a huge amount, then your return is negligible or very low. So, instead of suffering from analysis paralysis, I wanted to share with you how I put the three cost of everything in place to assess my ideas, follow up on my businesses, support my clients and evaluate deals to invest.

My dear professor Eng at Babson once drew a line with a customer at the right end and the entrepreneur on the other end. Then he started talking about pricing. At least, he said with conviction, you must pay your variable costs. It reminded me of a conversation I had once with a tomato grower: the cost of picking up tomatoes was lower than the price he would get paid. He decided to let people go and pick tomatoes for free…

As most businesses still fail  -and I haven’t been missed out on failures- the three costs of anything brings a fresh look at how we pre-evaluate opportunities. The three costs are: design, production and commercialization. I hope that by the end of this drop you will be convinced that the best value proposition is to collaborate with others, inviting them to the party when you do not want to bear the costs. We all benefit: from our suppliers to our collaborators to our clients to our customers to our own self  (win x win x win too many times!)

The first cost is the design: Good designing involves thinking creatively and learning about interactions, putting tests clients to work and improving several times. The value of the design lies on a combination of what has to stay or not, and expands much beyond the cost of the idea which is nil. I have yet to find an idea that does not require mucho trabajo (a lot of work) to fine tune it to fit the market. In the case of innovations, this is all the way up to the phase of prototyping. Even if you are thinking about providing services, spending the time on creating a clear cut offer is fantastic! As an overall rull of thumb, you can expect to spend 20-25% of total expenses on designing. That actually puts pressure on your resources (cost your time too) so you can pick those services or products where you have higher profits so you can still have a life (see my wealthdrop on coins vs bill clients). Chances are that the cost of design is not directly translated into the cost of anything, but lies on the back of our head and actually prevents us from pursuing low value activities. This is a typical sunk cost!  If you don’t assume the cost of the design you are subsidising your offerings and –sorry to say- destroying wealth. You can reduce this cost by integrating other’s ideas. For this creativecommons.org is a fantastic place to start and to share. By the way, you toss OUT of the door as fast as you can 10-15% on ideas that are not opportunities!

The second cost is the production: once we have established what it is that we are offering, we need to create it. Part of the design phase is what are we going to integrate from others and who are the others!  Production costs involve fixed and variable costs. Fixed are costs regardless of the production. Variable costs depend on the production. In the case of service apply the same principle. My rule of thumb production costs need to be around 25-30%.  In some cases there is an easy way to calculate it.  If you’ve done your work on the design phase this should be an easy task.  Nowadays with the flattening of the world and the networks such as elance.com and alibaba.com, it is easy to integrate stages in a cost efficient way. I can have a book written in Australia, designed in California, including a picture from Argentina, printed in Korea with Canadian technology, German Ink and Chinese paper, transported by a Dutch company and stored in Hawaii for the US market and in Singapore or Vietnam for the Asia market. My statements can be handled by an Indian company using Israel technology and I can save a large percentage of costs which decreases productions costs.  Actually that is a real case.. add a couple of virtual assistants in Australia, US, Chile and Uruguay.. we work around the clock and around the world. Anybody that can read this can do it. Yes, you too.

The third cost is the commercialization: unless you are in trade you’ll be surprised to know that the production cost of most tangible things is very low, it is a series of transactions and value-added services that brings the price up. From branding to advertising to transport to packaging to financing to after-sales support to many activities. Oophs! In today’s world, most companies sell through distribution channels, giving them a large percentage of the sales price, hire consultants to increase their volume and keep all of them happy. Those who have created a sales channel from zero know the hard time it takes to make it (design and production) and to keep it (production and commercialization). My rule of thumb is that this cost is around 30-35% of your total costs.

So.. the three costs of anything account for 75-90% of your total costs, the rest is management or general administration.. Now, here is the trick.. MOST businesses fail because they only count the production cost.  If your production cost is 50% you are in the negative, simple as that! The great news is that we all think and we can use our design time to reinvent what we want to do, after all, we think! All costs can be reduced if we engage natural collaborators. It goes against trying to do it all ourselves. In reality, our most valuable asset is our time and it is worth to make the most efficient use of it by leveraging with others. Without understanding the three costs of anything we might subsidize our offerings without realizing early on that even if we win, we lose. I’ve been there, completely underestimating the real costs and not spending enough time on the creation part.

Add the three costs when you are evaluating your next business idea, find an ideal collaborator to share the costs and reap the rewards of making your time more efficient. And how does this relate to revenues? that's a whole other are, because the market sets the price not your cost.

Here is to your success,

Alicia Castillo Holley

Perth, 5 Dec 2007

What is your Business Model?

Integrate, Orchestrate or License

The world seems to be shrinking but was it really that big to begin with?  Certainly, I’ve been working with people around the world for over a decade, yet stories of successful combinations are more abundant, no wonder, we are more –people- and news travel faster.

Understanding how to use different business models in a world that is shrinking is simply fascinating. We find a wide diversity of business models, from fully integrated to limiting licenses. Integrators, incorporate areas critical to the business that could be completely independent. Dole, one of the largest produce suppliers in the world, owns farms, genetic labs, packaging facilities, large storage, and fully integrated distribution channels. It does receive however inputs such as agrochemicals, machinery, labels, tins and so forth.  But fully integrated firms can also be small, such as the homemaker who harvests fruits from its own land and sells them directly to the consumers.  Integrators gain competitive advantages or economies of scale. In the case of Dole, their extensive plantations benefit from genetic improvements, in the case of Joe Jams it is freshness, transportation cost and inventory. 

On the other extreme of the business model options lie the licensor, who has developed a great idea but does not want to go through the troubles of implementing a business plan or even developing it further. There are many fascinating licensing stories that make one thinks that creating an innovation is not related to creating wealth from it.  The MacDonald brothers had a small trailer in a parking lot, they sold their operational model to serve burgers in less than a minute by forecasting orders and starting the production process as soon as customers –yes very poor customers- would walk into the parking lot on their lunch break.  They did not make or thought about making a large company. It was Ray Kroc who saw the opportunity and convinced them to sell him the franchise rights in 1955 which they had not thought about.  Ray was a multi-mixer sales man and it seems that he thought it would be a great way to sell more multi-mixers, the MacDonald brothers had 6 multi-mixers running at the same time and Ray thought that convincing people to run small food trailer that way, his sales of multi-mixer would increase.  Mac and Dick Macdonald received $2,7million for the rights few years later, but sales on their trailer went down and they closed it. Ray went to establish the largest chain of fast food restaurants and an icon in Franchising and American trans-culturization around the world.

Another fascinating licensing story is the one of DOS, originally the Quick and Dirty Operation System (QDOS), developed by Tim Paterson in Seattle, not by Bill Gates. Paterson was running his own business, whilst Gates needed to provide IBM with a standardised language for its computers. When Gates realized that it would not be able to finish a full operating system developing it from scratch, it bought a license from Paterson and improved it. If he had chosen the path of in-house development and failed to deliver its software to IBM history could have changed, mmm for all of us.

Most business models are neither integrators nor licensors, they are orchestrators. Orchestrators concentrate their main activities around areas that they can manage effectively, and seek collaborators that are passionate about their areas, hungry for growth and ethical. And I couldn’t think of a better time to orchestrate than now. When we think about virtual places that open up connections to suppliers like www.alibaba.com and www.elance.com, we are open to explore endless opportunities. The art of creating a fantastic business model lies is balancing what areas YOU (yes YOU) like doing and can supervise doing and which others you want to outsource. Since the world is becoming a vast net of communication, it is easier and easier to combine different competences to create amazing offerings.  Could you image what it would be like to combine your dream offering with others whose dream offerings complement yours?  You don’t need to be a business owner to take advantage of this, yet when you become aware of the infinite choices, your mind wanders and new opportunities become obvious. 

For example, my company not only uses a graphic designer supplier, but incorporates its services to our marketing services. Likewise, it uses the services from virtual assistants around the world if needed. In one case, we worked around the clock once with suppliers from South America, Asia and Australia. It did require careful planning and the intention to collaborate from all parties, but the results were fantastic and invigorating for all of use involved. We finalized the work in 2 working days instead of a week, giving our client a competitive advantage without increasing the costs.

So, if you have an idea in your head, a prototype in your garage, or a beta site on your lab, NOW is a great time to start finding ways to get it into the market and for one side, improve the lives of your customers and on the other side, your well being.

Here is to your orchestration,

Alicia

PD:  as the year comes to an end, we want to extend our best wishes for a prosperous 2008. Joy for those who celebrate the holidays. Our offices will close Dec 15 to Jan 15, and I’ll be travelling to San Francisco, Houston, Venezuela and Miami. Let me know if you are around. As usual we’ve decide to make a donation to a worthy cause. If you are into gift giving, extend the blessings to those in need. My husband and I decided to give each other a donation to a favourite cause. This year, we are supporting Clontarf, a local school for aboriginal girls, and the local animal shelter. I couldn’t think of a better gift myself.   

Perth, 18 Oct 2007

Coin or Bill Clients?

Thanks for your previous responses and welcome to those who signed in recently.  It’s been a lovely time, Perth blooms in Spring, and we went to Turkey and Dubai to celebrate my husband’s 50s birthday. Loved Turkey,....  it is a hidden gem and WesternTurkish hospitality is remarkable.

This wealthdrop was inspired by a conversation with two CEOs of innovation-based companies and need to make crucial strategic decisions.  Carlos and Nicolas are facing what I call coins or bills dilemmas.  I also made the comment to my cousin who is setting up a Holistic Centre in Nebraska and she found it quite valuable. I hope to trigger interesting thoughts for you too.

I always thought that setting the price wrong was the most common mistake and the one with the largest impact on the profits/viability of a business.  Pricing is an art and science, following a careful observation of the market and one’s position… not NOW but in the FUTURE.  Low price does not translate in low cost. High price does not translate in high cost. I prefer to think about value pricing. Yet there are other considerations that have more to do with your strategy than with the market.

Coins vs Bills dilemmas help you shape the way you work. You stop working hard and you start working smart.  Coin clients will give you a margin in coins. Bill clients will have a larger impact –individually- on your bottom line (read profits). Bill clients are not coin clients who have more money. Bill clients are those to whom you can provide a high value proposition. Sometimes they are even different segments all together or are in a different industry. You need to think outside the box to find them, and you need time and resources to go after them. You can ONLY have the time and resources to do so if you say NO to coin clients; furthermore you need to NOT pursue or attract coin clients. Otherwise you get busy but not happy.

The trick is to be selective… if you sell your time for coins, that’s what you get back. If the value you provide is in coins that is what you get back. You can reshape your strategy towards bill clients by asking yourself:  where are those who need what I can offer and would be delighted that I showed up? And how do I increase my value? Note that money needs to be part of the criteria but not the only criteria. There are people/companies I would not work with, regardless of payment. The exact thing happens with our personal life by the way.

Being choosy helps you accomplish more even if it seems harder or takes longer time to achieve.  Even if your financial situation/ or you company’s is thriving you do need to ask if you are using the appropriate criteria to select your clients.

When we fail to be selective we take a less than ideal solution and struggle, self-reflecting often that this is NOT what we want from our lives. When we take ownership/accountability for making the ideal choices we have the results we want.  Yes there might be circumstances that are beyond our control, but why some people chose to work –or even worse go after- coin clients is something I’ve never quite understood. I hope it is like one of my students say: I just never thought about it.

Chances are that you will always have clients that you are outside your focus; some will be coin clients. You can use other strategies to support them by finding ways to keep low costs/efforts in: marketing, sales, transactions and operations. And you can help them become bill clients too. The trick is to think in terms of profits not revenues, and include your ideal value per time.

The attraction of having bill clients is that your bottom line (read profits) increases. You consume fewer resources and achieve more. You can then use those freed resources to enjoy, create new things, contribute to your community, strengthen team, friends or family ties and simply indulge yourself. 

Next time you are unhappy about lack of resources think if you are creating coin goals or bill goals, and think how being selective can change your results.

Here is to your bills,

Alicia

Air,  30 Aug 2007

The four factors

Thanks for all the feedback about the previous notes. Greetings from the air, where we just cross over the international date line in the Pacific, on my way from Los Angeles to Sydney. This wealth drop comes after a couple of intensive months of work and traveling.

I wanted to share with you an analysis I just finalized about what successful entrepreneurs are doing TODAY. A successful entrepreneur is NOT the person who starts up a business, or manages a small business; rather he or she uses creativity and innovation to create a positive flow of resources –what I call wealth. Entrepreneurs are quite fascinating because they/we think about solutions instead of problems, accept and seek critics or challenging comments, grow their networks and include others’ benefits into their agenda. Besides nurturing creativity and innovation, successful entrepreneurs are actively engaging into 4 areas:

1. Reinforcing an internal locus of control
2. Incorporating external learning
3. Creating and growing networks
4. Continuously improving

Reinforcing an internal locus of control is critical to come up with solutions: what can I do about it? That is much healthier than complaining, and leads to action. There is a subtle difference between exploring why things are happening and exploring how to get to where one wants to be. Some people might debate that if we don’t get to the core of a problem we might never find a solution. I tend to think that if we focus on the solution we are much more efficient, and if we are more efficient, we have time to enjoy ourselves too. Learning about the roots of the problem does not necessarily translate into solving it. One of my favourite examples is the discussion on crop yields in the tropic vs. temperate climates. Plants feed on sunlight, thus a lower number of sunlight hours (12 in the tropics compared to 14-18 in the summer of temperate climates) reflects on poor yields. Also there are many more pests and diseases in the tropics as their cycles are not broken by the winter. Understanding the causes of the lower yields is interesting but does not lead to a solution. Efforts to recreate the conditions to get similar results have failed miserably.

The key to exercise an internal locus of control is to think about what we can individually do about whatever circumstances we are facing. Since we are all unique we usually come up with different solutions. Instead of using our time to ask: why is this happening? We move much much faster if we ask: what can I/we do about it? and how do I/we accomplish what I/we want? Thinking about what we can do makes us feel in control. If we feel in control we create new worlds that work for us!

Let’s talk about incorporating external knowledge. Learning is fascinating: whether it is a new book, course, or discussion group. As we grow older we separate from learning, being too busy doing things, even if we take time to reflect and improve. Learning is highlighted when we think about how to incorporate knowledge that is foreign to us. Being curious about what is happening and learning from others is like getting on the seven miles boots! It is fantastic to get a magazine or browse a discussion list about something we would not usually read. After that we can explore how to expand our horizons in two different ways. We can explore how to use foreign knowledge on our issues. OR, we can think about how to solve an issue with our experience. Using other’s mindsets and frameworks of reference is fantastic,
gives entrepreneurs a distinctive edge and keeps the creativity flowing. When you are trying to incorporate external knowledge you free yourself to ask how this or that can be done. Most people love to give a hand to an inquisitive mind, especially if there is something unusual in the request. They learn too by the exchange.

Creating and growing networks is critical. You see, we often think that businesses make decisions, they don’t, people do. Successful entrepreneurs grow their networks continuously because they have fun doing it. More than keeping in touch regularly, it means making meaningful touches. It is based on we care to make a contribution to others without subtracting to our life. As I say, we only have ONE world. If each one of us could do ONE thing to help another person, the world would be a better place. I care less about if it comes back and more about knowing I made a contribution to improve someone’s lives. They will pass it on and the only world we have will be a better place. In the
same topic, if you can help someone be more efficient, make one connection, or one suggestion, do it. If you are afraid of overdoing it, chose when, how and to whom. Building healthy networks also mean respecting YOUR time and your resources. If you feel you are giving too much, put an end to it. If you are afraid of saying no, practice doing it.

Successful entrepreneurs tend to stay away from networking events that are shallow and too ‘givemeyourcard’ oriented. We like people and have a genuine interest in what they say, need and want. Sometimes I have nothing in common nor want to engage into a specific conversation, yet I expand my networks by quickly exploring if someone in my network will benefit from making a connection. I don’t have a Data chip in my head about all the people I know, yet, if I can make a connection –and frame the connection with my level of comfort- people will appreciate your extra care.

I also like asking people how I can help. Most people don’t know how to answer. It helps me see how I am being perceived and what others need. Are you ready to respond that question? How can I help you? Then, are you ready to ask the question yourself: can you help me… ?

Finally, successful entrepreneurs are improving continuously. They consider the process as well as the goal and purpose to manage their world as dynamic. If you are your results, who are you when you fail? If you can’t accept the possibility of failure, it takes much longer to improve systems and procedures. Besides, it affects how others around you explore and take risks. The road to improve continuously is filled with uncertainty. I try many new things, I face rejection, I make mistakes, I have doubts but I know that if I keep doing the same thing I will not grow. One of my favorite sayings is that if I’m not growing, I’m dying, it is a rule of life.

I hope this analysis helps polish your entrepreneurial skills…
Because it is better to create wealth than to share it.

Here is to your success,

Alicia


PD: I need to ask for your help.

I’ve been quite active writing my new book: From Brain to Gain. For those of you who do not write books, it is a lengthy process… at least it has been in my case. I expect to get a final manuscript by the end of the year.

I’ld also appreciate if you could fill the questionnaire about innovations on my homepage or enter here directly http://www.surveymonkey.com/s.aspx?sm=80yks3pOXBpD7_2br85pPwKA_3d_3d
Could you please also forward the link to others. It has 12 questions and takes 5 minutes to answer.

I promise to share the results in November. If you are in Istanbul, Dubai, or Singapore, let me know because I’ll be there in a couple of weeks.

Albany, 2 June 2007

Achievement, use and payback

I’ve been writing and rewriting my book from Brain to Gain, and sure enough, as I dig into my research, conversations with inventors and self reflection new ideas surge almost endlessly. I only wish I could type faster or think more slow J

Most of the books about innovations and taking innovations to markets are, to my like, shallow. You see, we make choices, we drive business, we make things happen or not, and WE are quite complex. I usually thought that it was really the alignment of our needs and desires in four areas: physical, emotional, intellectual and spiritual –with no particular order- that made us fulfilled.

We know that if any one are is out of balance we need to do something about it. It is like a table with four legs… they need to be aligned. It does not mean that the legs are stable. What a boring thought!!! Yet that as we evolve in life, we move one or two or three and we are really alive and constantly working on those four areas.

Part of those thoughts were the ones that lead me to write the 10 unwealthy habits, where I strive to raise awareness on the habits and provide tips for practical solutions. This time, I want to dive deeper into what is it that makes us happy and fulfilled.

The elements that I’ve found that make an innovation successful are not confined to a financial equation. The return on investment (ROI) calculates the amount of cash that is generated from cash invested in a certain period of time. We can use the same analogy to calculate ROI for other resources like our time, or, yet harder, our effort. Still nobody has been able to put a number on our passion. I think some of my friends from my biotech times would discuss that one can measure ATPs (a way of measuring energy) within one’s body. I prefer the more poetic way that considers magic. I don’t know when it was the last time you were aware of magic. You see, I just spent the weekend at the Sunshine Coast and drove through the end of a rainbow. What a cool thing to do! (no gold puts were left in my car though), I was also able to swim with seals and that is simply priceless. I am still the same person who can do financial spreadsheets, strategic mapping, discover valuable attributes, make dinner and wash my dog. This is what happens with people. We are not one sided. We are multiple sided. So I thought, what are conditions that could work on all four levels? And I found 3 measurements – achievement, use and payback - that were applicable to the success of an innovation but could very well be applicable to us. After all, aren’t we always reinventing ourselves?

These three factors provide growth in the complexity of our lives; our physical, emotional, intellectual and spiritual areas.

Achievement is probably the starting point. We want to have the sense of achieving, of overcoming difficulties, challenges, and surprises and feeling smart, capable and or strong. Through the sense of achievement we gain confidence in our capacity to overcome obstacles.. No obstacles = no confidence. Low obstacles = low confidence. High obstacles = high confidence. It is not arrogance but yet it is like saying I might not know how to do this now but I will work on it.   When we achieve or when we are working towards our achievement we are strengthening our uniqueness and our value to the world. That is why the next factor is use.

Use is the connection with others, the acceptance that our achievements expand beyond our own self. If we are the only beneficiaries of our achievements we are at loss. It is not only our relationships with ourselves but our relationships with others that make our life full. The trick is that when we hear something that prevents other’s acceptance –and therefore the use of our achievements – we feel rejected. If we can change our attitude and focus on understanding and learning from others we can then continue to gain more competence, more confidence and increase our achievements. It does not mean to ignore ourselves in favor of others but simply to acknowledge that others can have a different point of view.

Payback is resource driven. I’ve seen many inventors struggle with this, as if not wanting to accept that financial retribution and fame is also a feature of growth. What I’ve seen is that if there is no payback, there is sourness. The feeling of injustice and inadequacy is a horrible combination. Most inventors don’t want to mess up with money. We had a comic character in my home country where this mock guru used to say: “I don’t mess up with money, I spend it”. When I realized that payback was part of the equation I was able to be more specific about what I offer to the world and what I expected from it. Because of that I was and I’m now able to give back. Resisting payback is as damaging as considering it as the only factor of measuring success. I seldom find people on the later extreme.

So, what does this entire wealthdrop can do for you? If you have an innovation or want to foster innovation within your organization, use these three factors to establish goals. Or yet, more interestingly… think about these factors to inspire yourself up: achievement, use and payback.

Here is to your success,

Alicia Castillo

PD: if you like what we write please help us spread the words. We want to write a monthly column in media. Whether it is newspaper, magazines, corporate articles. We are preparing for a tour around the world with From Brain to Gain in 2008. if you have any tips, we would be delighted to read them. drops@wealthing.com

Perth, 23 May 2007

Reality, Education and Jobs

Most of my work deals with innovations, yet I have also participated in non-for profit organizations. Both my work and volunteer activities have a common element: creating new realities.

During my stay in Chile from 1996 to 2002 I learned that realities are just images we form mentally to make sense of the world. Creating new realities is one of the most attractive conditions of human beings. My dog can fetch for food, water, or seek warmth, yet she lacks the capacity to think ahead, imagine what it would be like to create a new reality and act upon it. We have the capacity to create a vision. Are you using that capacity?

It is rather difficult to think outside the reality others have created for us. Schooling, work, finances, fashion, food, you name it. We are surrounded by invitations from others to join their realities. Last week I read in the Financial News, in Australia, an academic complaining about an entrepreneur who did not finish high school and became successful running a truck company. The academic’s final words lingered in my head: “most of us need to get an education to get a job”. What a sad reality. Despite having 11 years of tertiary education, all successfully completed with honors and prizes, I don’t feel that I needed to get an education to get a job. What is worse is that I feel we are not giving students the tools they need to have a fulfilling life.

Last week I tried a tool called Open Spaces. It is based on freedom. Meetings start when they start, they end when they end, everyone chooses to participate as he or she wills, and leave or stay at will too. I had used that at a meeting before and it was fantastic. We were all grown ups with a sense of contribution. My students instead were blocked by the freedom offered. I think we are failing at providing them with enough reassurance that they have a valid contribution to make, and put too much emphasis on grades which in turn is unfair. When my children or even when I attended schools in the US, getting a 100% mark was a reality, not an easy one, but one. In most countries that is not the case. We, the graders, play the role of evaluator to a punishing extreme. Yes it should be hard to get a 100 % mark, but it should also be possible. Otherwise we promote mediocrity. Nobody will then be encouraged to do their very best if the score is not going to be fair. It is likewise for failing. It is as if we shield both success and failure. 

Moving on to creating new realities, I wish we could create a new world, where internal answers would be part of the process. It is not the grade, it is the learning. It is not the promotion, it is the contribution. Then, we spend thousands de-learning what we learned in academia: the book gets 100, the professor 90, and the best student 80. We can’t understand why people are not self-motivated, and we lose that magic gift of creating new realities.

We move to look for jobs someone else created for us, and we work on repeating realities. What happens then to creativity, innovation and contribution? That is probably why companies and institutions struggle to improve.

Then it is not the job. It is the legacy. The feeling that each single one of us is a unique individual with a valuable proposition. The acceptance that someone else’s reality can be accepted, improved, and likewise worsened by us consciously.

When we capture the essence that we too can create new realities, we raise our accountability and self-esteem, and treat others with the same respect, giving them the freedom to participate or not. That is the best gift we can give the world.

Here is to your new world,

Perth, 4 april 2007

The right questions

I hope this wealthdrop is quite provoking. As I write it I hear news of the release  of the British soldiers from Iran. I think the whole issue has become a game of power. I wonder what would have happened if Iranian soldiers were found inside British waters. Of course considering that Iranians would send young inexperienced soldiers.

We might be considering the question: who is right? Or who won, who lost? But I think those are the wrong questions. And nope, I don’t expect to know the right ones. For me, it would be along the lines of: How can we respect each other?

This wealth drop was starting here, when I heard the news and couldn’t resist to share some thoughts. I want to comment on some questions that are being discussed at Linked-in. (www.linkedin.com) This site itself has started to make the right questions… moving from how do we expand networks to how do we create networks.

I answer quite often a key question about Venture Capital. Why wouldn’t they fund my idea? The right question is – in fact: is Venture Capital for me? Or how do I finance my idea? Asking those questions may lead to completely different answers.  

That made me think even further. The most interesting question would then be: is this the right question? Could you imagine spending your time finding the right answer to the wrong question? I’ve been there, done that…

Let me give you a couple of examples. I was talking to a former student who is having a hard time finding a job that is of interest to her. If you knew about how heated the job market is for Perth, Australia, you would think she was kidding! We were talking about what she thought her problem was: lack of experience. The jobs she had found were too basic: giving flyers on the street and other jobs along those lines, not really what she would like as a college graduate. She was thinking about working as a volunteer or doing some further studies. We talked for almost two hours about her strengths, her experience, her networking. We wrote a plan and she was on her way to find associations, seek smaller businesses, buy books, and find news on the internet. Just as we were done, she timidly asked if I could give her some idea about salary expectations. When I asked how much she was anticipating I was shocked to hear that she was thinking about a little over half of the salary of a small business secretary/receptionist. So no wonder she was looking at jobs that were too simple for her! We had spent hours on that conversation! And I had not asked that very important question.  

Then I remember talking to my son about his strategy to capture clients. We spent a couple of days discussing return on his investment, and I thought our BIG breakthrough was to include a value of his time into the equation. After we sorted out the strategy, returns, methods, letters, percentages of responses and other details, I asked out of curiosity.. why they don’t go to the competitors and he responded: because they can’t afford those services! I almost had a heart attack!

Also I remembered when my kids went through their teens that I realized I should be thinking about how I could support them to make good choices instead of how could I protect them from their bad choices. Talk about different questions!

Now, here is the issue for our own prosperity. Because I am a firm believer that you cannot create wealth without sharing it (wealthy people don’t keep their cash in their pockets, they spend and they invest), we could ask: how can people create wealth instead of how do we ensure that the existing wealth is equality distributed?

I hope this wealthdrop brings in new perspectives to some of your questions.

Happy Easter for those who celebrate.. and cheers for the British kids who were sent back home with an amazing story, and the lesson from Iranians. Let’s celebrate for a change… Isn’t the world a wonderful place?

To your success,

Alicia

Perth, March 11, 2007

Why, why, why innovate?

Beyond all the commercial/financial reasons, under each innovation lie two powerful human needs. The need for contribution, since there is no substitution for the personal reward is to know that we make a difference in someone else’s life; and the need for recognition, because it is when we become aware of our impact that the first need becomes real. Get the most non-innovative person into a new unknown situation that requires repetitive actions and shortly after he or she will begin experimenting and sorting out what is working, what is not working, and creating a process or way of doing things. Get the most innovative person into a known situation where changes are not welcomed and he or she will leave or stay frustrated. In
order to exist, innovation needs the human touch called motivation. Some, who are more fortunate, experience inspiration instead.

Companies like innovation mainly because it adds value in various forms:

1. Increases moral, participation, loyalty and sense of purpose making the working environment more interesting.
2. It can potentially increase revenues
3. It can potentially decrease expenses
4. It influences the branding of the company and, in some countries, raises the perceived value of the firm.

Truth is that in the name of innovation, the only real and intangible benefit is actually making people feel better… and the
process of measuring the value an innovation will create is a nightmare! Despite all the systems I’ve tried and studied, no
one can closely predict the future of an innovation. People innovate because they want to contribute. Hence, the magic bullet
that kills innovation is the perception that all the effort will lie still in the inventor’s mind, a library, a bookshelf, hidden
under other papers, like a seed lies still in a waterless desert.

Typically, innovators cannot assign a value they wish to obtain from their creativity. The paradigm that a “good” innovation will provide a “good” return on investment is quickly destroyed as the fun ends and fierce determination becomes much more important than initial innovation. It is as if the seed that plants the innovation needs to endure the long and unpredictable process of coming to life, adapting to the environment, establishing different, versatile relationships with multiple players and face the inevitable graduation party call death.

Two factors determine the success of an innovation, its use and its payback. Most innovations generate little if at all wealth for its creators. For example, published research is of public domain and most in-house innovation is recognized internally but
not financially rewarded. The payback is the area I am always fascinated with, how do we convert a benefit into wealth that rewards those involved?

Innovating keeps your brain agile. Exercise your innovative skills often and you will be able to create new worlds around you. It also helps to think that a good idea is the worst enemy of creativity. So you can develop your ‘determination’ skills too. You can start by asking a simple question: how can I make this better? Or you can create a project and work on that.

Once you think you’ve cracked up the next best thing, you face challenges. I have organized these challenges as walls, and
throughout the rest of the year will work on building ladders, doors, or scape routes to manage those walls.

This is where the real fun begins!

1. Wall to the market.
2. Wall to continuous improvement.
3. Wall to working with others.
4. Wall to funding.
5. Wall to determination.
6. Wall to wealth.
7. Wall to integration.
8. Wall to inspiration.



Hope you get your innovating muscles working. Drop me a line if you wish, I am always interested in your feedback.


Until next drop,

Alicia Castillo

PS: You can distribute this wealth drop or any material for free on this site on these conditions: You mention us as a source, and you don’t profit from it. Someone was selling our unwealthy habits in Singapore. We will start selling the printed book to support the orphan wealth project. If you want to get involved or know someone who wants to get involved drop me a line.

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Perth, Feb 10, 2007

The perfect fit

The expression Cookie Cutter does not exist in Spanish. Although we do have cookie cutters, nobody expects a recipe that will fit it all. We are used to unplanned changes, and see nothing of it. We don’t think in processes either, yet I have to thank my training as a researcher for the analytical skills I have. Many years ago, I was working as a research assistant (well, ok, I was only 15) and saw leaves with hair had more virus spots. Plant viruses when inoculated on leaves create a clear small mark. These marks can be yellow, black, red or brown or a combination of those colors and each virus will make a distinctive type of mark. Then the virus might spread or not depending on the susceptibility of the plant. We were trying to identify resistant varieties. And I was there counting marks, inoculating viruses and doing the math. I did not know much about statistics, but I did notice that hairy plants had fewer viruses, even when shaved! And I also noticed that there where little bugs, Andrector, like ladybugs, more often in non hairy leaves than the rest. Just observing that lead to the discovery, after several conversations and more work, that Andrectors actually transmit viruses, but they stay outside their mouth. Nobody had found that before, so my ego was inflated at such a young age.

What’s interesting is that Andrectors don’t like hairy leaves. That pattern led to the discovery! What’s even more interesting is that if you only plant hairy leaves, they will begin to like them! And even more interestingly, they might start feeding on plants they didn’t think were that yummy before because now they only have hairy leaves. There was no cookie cutter solution for the farmers... Although someone planted small parcels of hairless plants to keep the bugs in a defined place...

I like the story because it highlights that ‘one solution fits all’ is not the best approach to everything in life. When I develop business plans or implement businesses or help others do that, I always seek a ton of information. One of the best questions to ask is: what is your ideal client. In one company we devoted some time to talk about what is the ideal working environment. And yes, we talked about light, plants, music, color of chairs, and those silly things… as well as ideal price, sales conditions, and employees.

The great learning for the smart entrepreneurs is to find that YES we can have ideal situations. They had not thought about it, probably the same way I didn’t think I could run my life the way I really wanted when I was younger. Marcus Buckingham in his book “The one thing you need to know” mentions that the secret to great personal success is the capacity to say NO to things that will drive us away from what we are passionate about.

Recently I submitted an exam for a Company Directors accreditation, the reviewer gave me feedback and one sentence made me sad: “You chose a board based on what you are passionate about not your real skills, most people treat this part as a job application” yet I think, I am so fortunate (and gutsy) that I chose to do things ONLY if I am passionate about it, and I believe the world needs more passion in our daily lives.

How can we find our passion if we follow a cookie cutter? Where is the recipe to our success? Where do we find our greatest contribution to the world, by which the way results in our greatest contribution to prosperity? What if, instead of reading best practices to follow them, we could discuss, comment, challenge, and twist to find our perfect fit. Where do we find our perfect fit? Well, there is so much information coming in, that the capacity to bring the information from within needs to be allowed.

You find your perfect fit when there is no resistance, when you flow full of energy and passion and when your contribution to others is magnificent. The trick begins with a simple question: what is my ideal world? And it will be different for all of us, and that in turn makes the world a fascinating place! We are more and more like each other and less and less than ourselves.

It has taken me a while but I now know that I am passionate about taking innovations into markets. I absolutely adore doing that, the thrill, the concerns, the stress, the marvel, the curiosity of finding the real value, putting economic drivers to it, and making it happen. That’s my fit.

What is your perfect fit? Look inside.

Fitting time,

Alicia

Singapore, Jan 17, 2007

Dreams come first

Happy Late New Year.

I am writing from Singapore Airport, on the way back home after several weeks of traveling.

This long overdue wealthdrop has been cooking for some time and I'm sure will bring some unique thoughts onto your mind.

It all started at the end of last year, when we took the opportunity to jump across the sea from Melbourne and visit Tasmania. As we drove across the fascinating landscapes, I thought it was a dream come true.

I don't know if you have ever had the opportunity of having dreams come true. That is simply magical.

I was thinking about dreams for some time, trying to convey a message that could trigger some interesting thoughts on you. Then, on my Spanish site we talked about goals... and it hit me... Dreams and goals... how conflicting they can be?

I think dreams are liberating... since you don't push yourself to make them true, you are free... May I then invite you to dream? Or to start a conversation on dreams? I mean, what are your dreams? What do you dream of doing, accomplishing, living, feeling, and so forth?

Then comes the goals... much more restrictive. Yes it is true that without goals we are like sail-less boats.. but perhaps the dreams are the wind and together we can get to places...

Without the dreams, goals become less complex, yet less mmm how would I say? Less fulfilling... Dreams bring in our emotionality, our spirituality. Goals are more physical, more tangible.

Amongst my goals for 2007 are to publish my book on Falling in love with your life in English, and to give two international public talks. These are amongst my dreams to make a difference in people's lives. Thus I see that my dreams live longer than my goals.

I hope you find the time to indulge yourself thinking about your dreams... go ask someone you care for, what are your dreams? And chances are you also bring a spark onto their lives.

.... dreams really come first.

May your dreams come true,

Alicia

Perth, Nov 25, 2006

1,2,3 JUMP

We are heading close to the end of a year. Time moves in a curve, it is slow at the extremes of our lives, and goes fast at the middle of our lives. I read recently that the present is the only time that we can expand. When we are caught in the past (what we've done) or the future (what we need to do) we get all stressed out.

I actually think that your future starts now. This is the time to do things. Planning helps, ONLY if it is followed by an action, yet sometimes planning gets in the middle. As we age we also realize that we are not right and that really doesn't matter. Not taking action is worse than taking an unplanned action. In our times, we have the luxury of accepting change. Thus, even if you take action and realize that it is not getting you to where you want to be, you are still ahead.

What about doing something now that you thought you would do in 2006? You still have 30 days or so. For me it is like jumping in the ocean. I hate cold water, so I just think 1,2,3 jump. So what about doing that thing that you thought you would do this year, and getting into action.

You might want to do it perfectly, or do it well, yet, if you don't do it at all, what good is it? Think Microsoft! Get it out the best you can and then fix the bugs. We don't live in the world of perfection but of improvement.

It is easier to change directions on a moving car than to get a car started. So here it is an invitation to make that jump and the push yourself in the back to do it now. 1,2,3 jump.

Here is to your jump,

Alicia

Pt Douglas, Oct 2nd, 2006

WIN ALL, ALL WIN

I get the best of my inspiration from talking to people and discovering people's dreams. My friend Rafael Rubio sent me a note about Affirmative Inquiry (AI), which I translate into Positive Inquiry. He is one of the few experts in the area along with Oscar Castello, who is part of my advisory group. Basically AI works on the dreams, and one of its most fundamental questions goes like this: "if we were sitting here talking about what an amazing journey you had lived and how you were finally able to reach your life long goals, what would we be talking about?"

And I knew exactly what it would be about: I am passionate about creating wealth from innovations. That is ME. Then I thought... mmmm let me get more time just in case, and I thought and thought, used my free time on a trip to Queensland and the Great Barrier Reef, including seasick time at a boat, and thought and thought and thought and it was all the same conclusion. I would sit down and tell him: I help made a million people wealthy and helped more millions of customers around the world.... I left University because as a scientist I could not live the way I wanted and I was frustrated that my research was read only by other researchers.

That is a great way of narrowing down what is it that you are passionate about. I am passionate about creating wealth, bringing the non-existing that sleeps in the brain of a person to peek out, get some roots, grow, and make it happen. I absolutely love it. And then we went on talking about my dreams and his dreams. And we don't spend enough time talking about our dreams, polishing them and getting ideas about making them happen.

I think most people think too small, and too humble too. I mean, I also hate those who think that they know it all, want to push things onto me that I do not need or want, and make me feel that when I give I lose.

But what about those people who really need whatever it is that I do or create? Have you ever felt that anything you gave you won more from? Wouldn't it be fantastic if we could create a world where giving and wining were combined?

Then I'm sure you've heard the story of the race at the Special Olympics. It was Nelson, who works with us in Latin America, who sent it to me. The story goes, that all contestants were set to go and started running as fast as they could. One fell and started crying, and slowly all the others, all of them, started to walk back to see what had happened. Then they helped the one who fell and they all walked together to the finished line, all together and then claimed we all won.

The story might sound cheesy, but if you remember the story of the hare and the turtle in our drops, many times we are in a different race than what we think, and what others do greatly affects our business.

The simple truth is that it is much easier to collaborate than to compete. But we cannot collaborate if we do not know what we are passionate about, simply because we do not excel at anything we are not passionate about. Yes, you can challenge that, but unless you are passionate you will not find the time and energy to stay ahead, to search, to create, to innovate, and eventually you will be the second best, the mediocre, or the plain horrible.

The question about achieving your life-long goals is also interesting because it assumes you are going to be successful. So often we put our passion on the side for a less risky, more standardized version of us... and then, if we don't give our best, we don't demand another person's best and we cannot help each other. Now, that really sucks!

The time has come from wining it all, to all wining it. When you help someone win, you win more, not keeping score, but enjoying the process and shooting for success. It is by switching our standards, finding like-minded individuals -or educating them!- on a "we all win" attitude what will make a difference.. in your life, in their life, your customers, users, friends.. in ALL.

If every time you win someone losses, you have all lost. It takes a while to break the paradigm but the more we realize that it is our connections with others, our similarities and not our differences that support our success, the faster we are on the right track and the better our contribution to the world is.

I am using that extensively in negotiations between a new company and investors, as well as new companies and potential clients. Then I've realized something quite interesting by being really picky: If it does not work, I really prefer not to work with those who are not interested in having me win. So even passing on is a win for me! And for them too, because they will find others to collaborate with. If it works, I will make sure that my success and theirs are all linked. How much better could it get?

Win all, with all

Alicia

Perth, August 28th, 2006

Creativity, Innovation and Entrepreneurship

 

Several conversations led me to this drop topic.

Part of the romanticism of entrepreneurship is the thought that entrepreneurs are creative, are innovators, are go-getters, risk takers, driven. All of that implies a high self-esteem and determination.

People like creativity simply because it is fun. We reconnect with the pure pleasure of getting something that did not exist before. When we create we forget our problems, we are just being, the child comes out, we connect with ourselves and it simply feels good. Our energy pours from the inside to the outside and leaves our imprint, the object of our creation becomes an extended part of ourselves. Creativity also lives in a time and purpose vacuum. The worst enemy of creativity is a good idea.

People like innovation because it implies progress. When we innovate, we have a structure. Innovation becomes change. To change we need the reference, the constraints, the structure, the present, what is there. When we do things differently, we are also creating, but we create with a purpose, fun stops until we reach our goal. Thus, innovation has less power as a self-expression than creativity.

Then we come to the field of entrepreneurship, one of my favorite topics. Now, I don’t think entrepreneurship is about creating a company but about creating wealth. It is closely linked to creativity, since we perceive that entrepreneurs MUST have something new to offer. We also think that entrepreneurs are innovators, because they find new ways of solving a problem. In reality, most companies are me-too’s, and most so called entrepreneurs are people who have bought themselves a job.

Entrepreneurs really take innovations and explore how they add value to others, they capture that value in the form of wealth, and they share that wealth with others: clients, users, employees, suppliers, community, governments, etc. To understand that being creative and being innovative is not enough and to be aware that there is a maximized value waiting to be discovered or created, is what entrepreneurs do best when they plan, then they take action, and finally, they evolve.

It is not a matter of luck as most people link entrepreneurship with creativity and innovation. If you don’t have anything, you create. If you have an unwanted present, you innovate. If you want to create wealth, you give that creation or innovation, the best chance. You don't need money to create wealth, you need creativity and innovation.

It is by thinking and taking action, by consciously discovering where the creations or innovations have the highest perceived value that entrepreneurs build their wealth… and by doing so, create prosperity beyond themselves. It is not about becoming rich but building wealth.

Without the notion of creating wealth, creativity and innovation can’t find a place in the market. To be able to distinguish where the highest value is, who is the ideal customer or client is to bring prosperity to our communities, and to act upon that thought, is what entrepreneurs thrive at.

There are many tools and methods that capture how entrepreneurs create wealth. It is not an art, or a science. It is the conscious effort of making the best of a product or a service, to find those who value it best, and capture that value, what lies inside the entrepreneur.

Creating wealth escapes the obvious, and creates new valued propositions. Sometimes we use innovation to improve what is there, but most likely, the best results come from a free, playful, fun exercise of creating wealth. Whatever you do to create wealth will improve your skills and build up that wealthing muscle. Even if you compose a song in tribute to your wealth when you are showering!

Here is to your wealth and joy,

Alicia

Perth, July 26th, 2006

What type of mindset do you have?

I just returned from a long trip to the US....Nothing like traveling, despite the long hours in planes (I double the books I read and get so much writing done!)

One of the books I am reading is Mindset: the New Psychology of Success, by Carol S Dweck. She has been studying motivation and has found a key distinction that I just found fascinating!

I wish I had known this before.

Let me give you MY interpretation of the differences by asking you to chose amongst options A and B.

A. Your partner loves you the way you are

B. Your partner stimulates you to change and improve

A. You chose your work based on your natural abilities

B. You chose your work based on what challenges you to grow

A. You think your potential is linked to your genes or fixed in some way.

B. You think one never really knows what one's potential is

A. You prefer an easier game that makes you feel accomplished

B. You prefer a game that you are not sure you will complete.

So well, people who think mostly in As, have a fixed or finite mindset. That means, choosing to leverage on ones' natural abilities, being appreciated for one's achievements, feeling special in a kind of superior way. May I expand on my own thinking here: These people measure themselves with others and feel important for what they've done. Thus, any criticism is taken personally and perceived as diminishing.

People who think mostly in Bs, have a growth oriented mindset. That means leveraging one's capacity to keep learning and growing, or developing in new areas. These people feel appreciated by their efforts, enjoy the uncertainty and challenges with a love for learning, and don't even think about feeling superior or inferior to anybody. To put it in my own words: these people thrive on doing, not being.

For a fixed mind person, external feedback is very important, validating or invalidating the person. For a growth mind person, the feeling on one's effort is what matters. The result is less important than the effort.

Fixed minded people look for things that make them feel secure, powerful, superior and, unbeatable. Growth minded people look for things where they are not safe, secure, where they feel uncertain about the outcome and risk failing because of the learning it provides them. They welcome questioning, criticism, and separate it from their value as individuals.

Some people are what they do or have done -the public image of John MacEnroe. If I am aware of -and work to be in- the growth mindset, I liberate myself from being right, I am open for questioning and growth .. and explorations that who knows would lead to -the public image of Michael Jordan... There are many examples, and I don't like stereotyping but I do hope the message gets to you. This ties in perfectly with an attitude towards wealth, and I tie it with external or internal locus of control. To be aware of your mindset style allows you to move through hard times using the growth mindset, to stretch beyond your limits and to take risks. Of course people with fixed mindsets will believe that you cannot change your mindset, and people with the growth mindset will believe that you can!

Certainly how you view your life affects your wealth, and much more your happiness. This reminds me of coaching, a technique I like so much. In my view, coaching helps you focus on how you get to where you want to be, instead of therapy that focuses on how on earth did you get to where you are! (and that's exactly what I've felt when I've used both)

If you believe that your life is built around your journey, and that your learning is more important than your end results, you allow yourself to enjoy a walk, hold someone hands, sing out loud in the shower, blink at a bird, and indulge yourself on a special treat.. and walk away from doing things so the others can see how wealthy or not you are.

If you believe that you can change the way you manage your wealth learning form your mistakes and NOT feeling uneasy about your state right now, you will be empowered to move forward, without wasting one single minute in feeling sorry for yourself... and that is the first of the unwealthy habits too!

Here is to your success,

Alicia

Perth . June 06, 2006

Jump into the unexpected

Just a quick thought or two...
I have been listening a lot lately that people who are successful chose so. Well, sometimes that is not the case. Sometimes people sit there and watch their lives in contentment until something magical happens and they shine.

Like what?
Well, did you know that Nat King Cole, the singer that made the song: 'dreaming of a white Christmas' so famous, was happy and content just playing the piano in Chicago? Yes, he loved doing that... at a small restaurant where people did not really care much about the background music. Then one day, a drunk white man kind of ordered him to sing. Nat kindly told him that he did not know how to sing. The owner of the restaurant approached Nat and whispered: you better sing boy, that man spends here more than you earn... so poor Nat sang...
His mellow, velvety voice filled the air, people did listen, and the rest is history.

You might also know the joke about the guy who has a party at his millionaire home and offered his cars to any brave person who jumps into his crocodile filled pond and gets back up alive.
Nobody answers.
So the wealthy guy offers more: my cars, my airplanes
Nobody answers.
The offer goes higher: cars, airplanes, homes
Nobody answers.
Even higher: cars, airplanes, homes and b...
Suddenly there is a splash and this brave guy fights the crocodiles and finally emerges all cut up, bleeding and tired.
Brave man, the wealthy guy says, you have demonstrated your bravery.. here are the keys to my cars, my homes. My airplanes...
Excuse me, the ragged man says: I do not wish to have your possessions.
Oh my Gosh, the wealthy man says.. then what is it that you want...
Help me find the one who pushed me!

So here you might be, on the verge of a pool, waiting for something extraordinary to happen to you, or wanting to do something amazing... and every day opportunities go by...

Get the glasses on and take those steps or thank those who help you grow by forcing you into the unexpected.

In the mean time, maybe you can start singing in the shower, when you take a walk or with your kids or beloved ones. One thing is for sure, you will have a moment of happiness, and your lungs will grow healthier.

here is to your success,

Alicia

Perth . May 25, 2006

What is your strategy?

I can't believe so much time has passed by since I last wrote a wealth drop. It shows that I am getting busier and my other initiatives are doing well, but still require my attention.

I am very happy to be helping a couple of spin-offs from Curtin University. It is a real treat to work with world class researchers and ping-pong our thoughts to create wealth. Basically, I don't think there is anything spiritual about poverty, and I know money does not make us happy. But there is something special when we see that we are able to create wealth: for clients (who recognize the value of our services and products), for our university or company, for ourselves, and for the society in general. I have been thinking about this as I also talk to people about refugees, countries where so much turmoil prevents people from expressing themselves freely, and circumstances where we fail to respect other's integrity and succumb to guilt, pity, or disrespect. Like how we feel about most aboriginals in Australia, Hispanics or blacks in the US, and immigrants from poorer countries in most places I've lived in. I refuse to feel pity for them, because I refuse to play part of a system that does not honor them, and does not put their future into their hands. As I was telling a friend last week, each minute we spend in feeling sorry for ourselves or for others is a minute we lose to create a future. However, this is a matter of a more profound humanistic reflection to come in few more days, when thoughts are more mature.

So here is a drop that has been building up for the last 3 weeks. It is about strategy. It sort of hit me when I was teaching a class about strategy. I use a Socratic teaching method.. I don't hold the answers I help students find them. It takes longer but leaves a longer effect as well. We were talking about what Strategy was and was not when I asked a simple question that froze everybody: What is your strategy for the next 5 yrs? As I could imagine my student's brains and hearts juggling their answers, I dropped another question: who has a strategy? 11 out of 32 people raised their hands. I asked a couple and sure enough.. it was mainly BS (mjm manure) .. Then we turned to those who said that they did not have any.. And do you know why they did not have any? Because they had NOT THOUGHT about it! simple as that!!!

Then it hit me too.. I did not have a strategy! In the early 80s I had a strategy, and I reached my goals, in 1989 also, boom, another one. In 1994, boom, another one.. In 1996 boom, another one.. In 2002.. I forgot.. yes, older and wiser (presumably) I forgot.. so here I was, 4 yrs later, in front of a group of young and bright students telling them how I've done this or that when I had a strategy and keeping my self-kicking to myself (and believe me, nobody kicks me harder than me). I did not have a strategy.... well, sort of. I know what I don't want, and I know what I don't want to do and I don't do it. But really, having a strategy is SOOOOO GOOOOD, and it feels so great...

So I went around asking people: do you have a strategy? And they all looked puzzled.. Strategy is NOT only for a company. I myself had to develop a strategy to publish my first book (coming soon), and I did write a chapter of a book that has been published. And every time I create a company I think in Strategic terms. But I have forgotten about my LIFE.

So..here is the invitation.. think about YOUR strategy. Why? because you will be much more efficient, you will get there faster, with less effort and you will enjoy your choices... and then you go off and enjoy life!

Making a strategy is SO easy.. follow this steps:

1. Explain your two basic points: where you want to be when (I chose 5 yrs .. more than that is too far), and you pick where you are. (Don't waste your time doing it clearly.. after all this is for your life, not for your company.)

2. Determine how you are measuring your two basic points very objectively. This takes a bit more time. For example: spend 10 minutes per week in the gym, or walking, making “$x” in new clients, developing “x” products, moving to a “x” house, doing a course I've never done, calling my mum and dad, or my siblings or my friends “x” times per month, cleaning and flossing (yeah we need to do that too). But clearly defining how you measure your points is the key.

3. Thinking about a way to get from one point to the other.

Now that you've made the strategy, guess what! It did not work.. why? Ahhh so many other things we did not include in the equation… The trick is to do two more things AFTER you've developed your strategy.

ONE: Follow up to see if you are getting off track or if you are really moving to your ending point.

TWO: Follow up if you have changed or decided that you don't want to get there and need to move to your ending point! This is a key thing!!! Yes, we change, we evolve, we mature, and we make mistakes.

I am not going to go into the details of those two last tips.. this is turning into a full downpour and I want to prevent it from flooding your email.

Hope you can think about your strategy.. have fun and ask around.. and rethink about your strategy.

Here is to your success,

Alicia

Perth . April 12, 2006

Ten unwealthy habits?

I just finished a note about unwealthy habits. I figured that as with health issues, everyone tells you what you need to do, but hardly anybody tells you what you need to stop doing!

The list of the 10 unwealthy habits is here.

1.      Feeling sorry for yourself

2.      Being greedy

3.      Doing things you dislike doing

4.      Measuring happiness with money

5.      Spending more than you can

6.      Preferring instant gratification

7.      Complaining

8.      Comparing to others

9.      Measuring wealth in monetary terms

10.  Isolating yourself from your family

here is to your wealth,

Alicia

Perth . March 29, 2006

What race are you in?

My friend Aurelio sent me a note about rewriting the story of the hare and the turtle. I really liked it and will add to it, entrepreneurially.

Let’s apply this to your business.

The hare and the turtle raced, the hare fell asleep and the turtle won the race. Are you in a company that has a competitive advantage and looses sight of the goal? Or are you in a company that keeps a steady pace to reach its goals?

Learning 1: keeping a steady pace is more important than your competitive advantages.

Then the hare thought about what went wrong and convinced the turtle to go for another race. This time, the hare used its competitive advantage and won cleanly.

Learning 2: learn from your mistakes and get back on track.

Then the turtle thought about it and convinced the hare to go for another race. The started together, but the path got to a river, the turtle jumped into the water and got to the other end whilst the hare tried digging a hole, going around and lost time.

Learning 3: your competitive advantages are constrained by the environment.

Then the hare convinced the turtle to do a race around a place they didn’t know. Along the way they where threatened by a wolf, the turtle jumped onto the hare and the hare was so concerned that it carried it along.. they found a river and the turtle carried the hare to the other side. When they where there they were happy to be running together and became friends. The hare was better are running, and the turtle was better at swimming. Mmm…they thought! Maybe we can do a joint venture!

Learning 4: collaborate with a competitor when a new player comes into the market.

They invited each other to their caves and discovered mutual passions about digging and different styles for building. Hours went by and they had a great time. The hare and the turtle began talking to everybody about their new found mates and forgot about the race.

Now everyone knows them for digging caves.

Learning 5: What you are best at is not necessarily what will drive your life. It is what you are passionate about that will make you successful and provide you with the greatest joy.

Now, in which stage of learning are you/ is your company?

Here is to your race,

Alicia

Canberra. March 22, 2006

Money is not the trigger, but it's a way to keep a score

Many meetings made me think about this title. A conversation with a researcher who is studying how technology firms get funded (only 0.7% by Venture Capital funds, 5.4% by angel investors), a meeting with the leader of a woman in business group, a presentation by a board member, a discussion with an entrepreneur, a class filled with young brains and hearts. I also had the opportunity to do some more interviews for my book on creating wealth (you can answer the questions here)... and yes, money is not the trigger, but it is indeed a way to keeping score.

So, here is the issue.. use money to keep score, not to trigger you.. Better accept that it shows a way you add value to the world... I've been quite poor and quite rich, and I prefer to be rich. Yet, money does not make me happy.

The secret to success is to do something you are absolutely love doing. NOT something you are good at. If you do something you are passionate about you will get less worried about money but will be so engaged into what your are doing that you will add more value than only doing something you are good at.

So success is to money as your passions are to your strengths. Or so I think whilst I wait for the airplane to get back home.

Here is to your triggers,

Alicia

Perth. March 1, 2006

Why do