With the new year upon us, I found myself thinking about some of the fundamentals of business success. One that keeps coming back to mind is “the rule of three,”
We developed a philosophy at my previous company, Serials Solutions (we used to call it SerSol, so I’m going to start doing that), that can be summed up as the rule of three. The order is important.
1. Give customers something great.
In our case, we focused on a great product, at a great price, backed up with great service. We were always aggressive, but never knowingly made a promises we wouldn’t be able to keep. We lost some business over this - prospective clients would tell us that they really wanted to work with us because of our reputation, but “you were too honest.” Those are the breaks.
Another aspect of this is that while it’s important to track what the competition is doing, it’s a hell of a lot more important to track what the customer wants and thinks about your product. Customer satisfaction is a critical early indicator of success.
2. Give great employees a great place to work.
We’re not talking about any or all employees, just the great ones. The ones who want to be challenged, to grow, to be proud of great work, to be part of a great team, and to leave the world a bit better. This includes giving people the high level direction, resources, and freedom to create something truly powerful. It’s tough for a start-up, but this also means a total compensation package that reflects the work being done.
3. Give shareholders a great return.
The problem with this one is that so many companies put this ahead of everything, to the point where it harms all three goals. The the order is important. The first two are the real value creators, so you’ve got to get them right. Otherwise, getting number three right will be hard as hell. Granted, people obsess over this and ignore the first two all the time. But I’m skeptical of the true success rate for software companies that choose this route. By contrast, when you get the first two right, and maintain clear and consistent focus on shareholder returns, you can deliver outstanding results for everyone involved in the project.
As I look back over 2007, I think we’ve done a good job of staying true to these fundamentals at CultureMob. Start-ups aren’t theoretical places. A lot of people make a lot of decisions, many of which are done quickly and with limited resources. But at the end of the day, a common thread becomes apparent. That thread should add up to something clear and consistent. As the company grows stronger over 2008, I’d like to see us continue this growth trajectory, and make sure that thread is clear and strong.
