PAIN to PROFIT$: The Fallacy of Business Plans, Is College Worth It, and How to Unblock Your Brain in Q2.

$TREET $MART$ 
The Fallacy Of The Perfect Business Plan

I regularly re-read books that have had a material impact on me. As of late, I have been reading “The Lean StartUp” on repeat. Each time I read this book, I gain a new insight. The Lean Startup has remained a staple in my library because once upon a time, I was part of a company where we spent 1.5 years building software without user feedback, only to have 80% of the features never used. Hindsight being 20/20, we had thousands of customers and hundreds of marketing account managers who would have loved to inform and test what we built. The problem…We rarely included them in the conversation.

The lesson: small batch building and testing, followed by immediate user feedback, is exponentially better for building anything new. Whether it's a startup or launching a new product in your established company.

The Lean Startup Method is a business approach developed by Eric Ries that aims to shorten product development cycles and rapidly discover if a proposed business model is viable. This is achieved by combining business-hypothesis-driven experimentation, iterative product releases, and validated learning. Here's a bullet point summary of its core principles and practices:

• Start with a Minimum Viable Product (MVP): Begin with a basic product version that allows the team to collect the maximum amount of validated learning about customers with the least effort.

• Build-Measure-Learn Loop: The fundamental activity of a startup is to turn ideas into products, measure how customers respond, and then learn whether to pivot or persevere. All successful startup processes should be geared to accelerate this feedback loop.

• Validated Learning: Startups exist not just to make stuff, make money, or serve customers. They exist to learn how to build a sustainable business. This learning can be scientifically validated by running experiments allowing a startup to test each element of its vision.

• Innovative Accounting: To improve entrepreneurial outcomes and hold innovators accountable, startups must focus on the boring stuff: how to measure progress, how to set up milestones, and how to prioritize work. This requires a new kind of accounting designed for startups—and the people who hold them accountable.

• Pivot or Persevere: Based on the feedback from the MVP, startups must decide whether to pivot (change course and test a new hypothesis about the product, strategy, and engine of growth) or persevere (keep on the current course based on the data and feedback).

• Continuous Deployment: Software changes are released into production as soon as they are ready, without waiting for a scheduled release date, enabling rapid iteration and learning.

• Split Testing: Comparative testing of two product versions to evaluate which performs better regarding customer engagement or revenue.

• Actionable Metrics vs. Vanity Metrics: Focus on metrics that can guide decisions rather than those that look good on paper but don't inform the business (e.g., the number of new sign-ups vs. active engagement of users).

• Lean Manufacturing Principles from Toyota: Applying principles from lean manufacturing to the process of innovation, focusing on reducing waste, increasing the speed of development, and improving the quality of products.

The Lean Startup Method advocates for a flexible business planning approach, where feedback loops and customer interactions are more critical than following a rigid business plan. This approach is particularly suitable for technology startups and has been widely adopted across various industries due to its effectiveness in managing the inherent uncertainties of new product development.

PUL$E
Is College Worth It?

Remote Work Stabilizes as the Workforce Adapts

Remote work, after surging during the pandemic, has found a stable footing with 30% of Americans aged 18 and over, and 38% of those aged 25 to 54, engaging in some form of home-based work. This reflects a significant shift from the pre-pandemic figure of 6%, signaling a lasting change in work habits. To accommodate these changes, companies are increasingly adopting flexible work arrangements, including job-sharing and multi-role training, to maintain productivity irrespective of the workplace location.

Labor Market Dynamics: A Shift Towards Stability

The American labor market is witnessing a decrease in churn, with the job quitting rate dropping to its lowest since 2018 at 2.1%. This period of stability, amidst economic uncertainty and political divisions, suggests a cautious approach from both employers and employees. Companies are now prioritizing the development of their current workforce, recognizing the benefits of long-term employee retention and the value of internal training investments.

Wage Adjustments Reflect Economic Shifts

As the labor market relaxes and the unemployment rate slightly rises, wage increases are moderating, settling around 5% annually, slightly above inflation rates. This moderation comes as companies anticipate the impact of artificial intelligence and other technological advancements on productivity and labor costs. The current economic conditions offer businesses a prime opportunity to strategize labor costs for the coming years, including wage adjustments and long-term contracting.

Older Workers and the Flexibility Trend

The labor force participation rate among those aged 55 to 64 has seen fluctuations, recently dropping as economic pressures ease, reflecting a potential return to retirement trends pre-pandemic. Interestingly, there's a noticeable preference for flexible working arrangements among older workers, with a significant portion engaging in shift work through platforms like Instawork.

The Rise in Trade School Enrollments: A Response to Skilled Labor Shortages

Amidst these workforce trends, there's a notable shift in educational preferences, with trade school enrollments seeing double-digit increases. This rise contrasts with declining enrollments in traditional two- and four-year college programs, underscoring a significant transformation in the educational landscape. This pivot towards vocational education is driven by the practicalities of cost, the promise of employment, and the stark demand for skilled labor in fields like construction, auto mechanics, and manufacturing. The growing interest in trade schools is a practical response to the skilled labor shortages plaguing various industries, suggesting a critical realignment of workforce development strategies to meet the evolving demands of the economy better.

Conclusion

The American workforce and educational system are undergoing significant transformations in response to changing economic conditions, technological advancements, and shifts in workforce demographics. Companies are adapting to these changes by investing in flexible work arrangements and prioritizing internal training, while individuals are increasingly valuing practical vocational education over traditional college degrees. These trends reflect a broader societal shift towards more adaptable, resilient, and skill-specific employment and educational models, positioning the economy to better address future challenges.

BRAND DAMAGE
Is Your Brand-Brain Blocked?

The first quarter of the year has come an gone and it’s usually about this time we fall into looking for the safe bets that will carry us into the latter parts of the year.

This can show the most in the marketing department.

Maybe you started strong and are doing ok and so you want to keep it steady as get ready for the late Q3-Q4 holiday blitz.

Or you are looking outside your doors worth others are doing that is working…for them.

Perhaps what you need right now in the brand department is not security but in fact less reason and more creative risk.

Where the current landscape of content production, UGC, AI, and culture sits in this very important year of 2024, the door has never been open wider to ‘risk it for the biscuit’ per se and grow deeper roots with your people and customers than you have had in some time.

Let this quote from the late(and great) David Ogilvy come be worthy of some pondering at the beginning of this month…

“The creative process requires more than reason.

Most original thinking isn't even verbal. It requires 'a groping experimentation with ideas, governed by intuitive hunches and inspired by the unconscious.'

The majority of business men are incapable of original thinking because they are unable to escape from the tyranny of reason.

Their imaginations are blocked.”

You’ve built the momentum, now let some of that inertia loose to generate some great ideas.

You never know, today’s risk may show up in Q4’s rewards…and revenue!

Xcelerated Performance
Call it what it is…

If your eyes are open to it, you can find success and leadership principles in virtually anything that is captured by another person online.

In the clip above, what is supposed to be a funny story about now retired college-football coach Nick Saban as told by NFL star Derrick Henry is actually is actually a gem in unifying leadership.

We won’t give a play by play of the minute long post but the lesson for your growth this morning is the following;

A leader best delivers constructive criticism and calls the team higher when they can demonstrate knowledge of the team members.

Effective leaders don’t dwell in castles, towers, or silos.

They’re with their people.

They see them.

And are seen.

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