I'm
an attorney with Ward and Smith PA. I
also write a column about business and law for American Business Journals, have
authored multiple books and teach an eLearning course for entrepreneurs. You can reach me at JFV@WardandSmith.com or JimV@eLearnSuccess.com. Or you
can check out my eLearning course at http://www.elearnsuccess.com/start.aspx?menuid=3075
or http://www.youtube.com/user/eLearnSuccess
or purchase my books at http://www.amazon.com/Jim-Verdonik/e/B0040GUBRWWhat are you doing this summer?
I'm analyzing business case studies. My first was in Peru on a four-day hike along
the Inca Trail to Machu Picchu with my daughter (JJ).
I have a theory that all things in life can teach you how
to run your business better.
Why?
Because business is about people. Psychology is the fundamental tool of
business. The more you learn about
people (customers, competitors, vendors, advisers, bosses, employees and
contractors) the more tools you have to be successful.
That's why everything we do in life can teach us valuable
business lessons. Of course, you can't
learn anything, if you walk around wearing a blindfold or keep yourself locked
in a closet. You have to get out into
the world and look and listen to learn anything. And remember, that talking only helps you
learn, if you stimulate other people to talk to you. Monopolizing the conversation impairs your
ability to learn. Maybe that's why
people who talk continuously seem to know so little.
So, what lessons did I learn from looking and listening on
my journey into pre-Columbian South America along the Inca Trail to Machu Picchu?
But before I answer that question, let me note that this
article focuses on the struggles of the trip, because business is about facing
challenges, winning some and minimizing your losses when you aren’t
successful. Despite the challenges of
the trip, we also had a lot of fun.
·
We saw glacier covered mountains that looked
like Switzerland.
·
We walked through lush rain forests where the
tree canopy blocked the sky.
·
We walked along mountain streams where the sound
of the rushing water energized our spirits.
·
We climbed in solitude over the ruins of an
ancient civilization scattered along the Inca Trail far from the crowds at
Machu Picchu.
·
We met wonderful people from Peru and around the
world.
·
We enjoyed the five star central square in the
former Inca capital of Cusco that matches the best town squares in Tuscany and
France.
But we often learn more from our struggles than from our
pleasures. So, let's jump into the
challenges of this trek and the lessons these challenges teach us.
Business Rule
Number 1 - Humility.
I like to think of myself as a pretty fit guy for my
age. Six hours of exercise a week and a
decent muscle mass index.
What could be so hard about trekking 26 miles in four days
when you regularly run 5 miles?
Alas, three things conspire to make the Inca Trail more
difficult than your typical 26-mile hike:
·
Altitude – thin air literally knocks you on your
butt.
·
Backpacks – extra weight slows you down and
tires you out.
·
Stairs – the Inca Trail has thousands of stairs
made of stones. Some of the stairs are
six inches high. Others are a foot tall or
more. One afternoon we descended
approximately 3,000 stairs.
Finaly Reaching the Top of
Dead Woman's Pass (13,776 Feet)
(Day 2)
Finaly Reaching the Top of
Dead Woman's Pass (13,776 Feet)
(Day 2)
The combination of these three factors meant a life-long exerciser like me had to bow to nature and limp along as best I could. At the end of days 2 and 3 of the hike, I had just enough gas left in my tank to crawl into my tent to sleep, wake up for dinner and then force myself to eat to refuel for the next day's journey. I would say that days 2 and 3 on the Inca Trail have roughly the equivalent effect on your body as running two marathons on consecutive days. I lost 5 pounds in four days.
Of course, you face similar challenges when you start and run a business. It's usually much more difficult than you think. Whatever preparations you make, circumstances are likely to make your business journey harder than you trained for. The American military has a slogan: "Train like we fight. Fight like we train." That's the primary difference between professionals and amateurs.
We amateurs (whether in business or hiking) have to deal
with our unexpected struggles with humility.
Don't bother entering the contest, if you have to finish first all the time. Sometimes, surviving to start again the next
day is victory.
Business Rule Number 2 - Learning Humility Clears the Way for Making Progress.
Business Rule Number 2 - Learning Humility Clears the Way for Making Progress.
My new found humility reminded of the connection between
failure and success and the concept of "Creative Destruction," which
Joseph Schumpeter (an Austrian-American economist) popularized in Capitalism, Socialism and Democracy
(1942). "Creative Destruction"
describes how periodic down turns in the business cycle clear the way for
economic innovation.
So it is with destruction of the body caused by a four-day
war of attrition hiking the Inca Trail.
Instead of big ideas that have no connection with one another, you focus
on very simple physical actions that are necessary to complete the goal of
finishing the Inca Trail in one piece. Here's
what the last two miles of our climb to Dead Woman's Pass was like:
·
Walk 25 to 50 yards uphill toward the pass.
·
Rest.
·
Walk another 25 to 50 yards.
·
Rest.
·
Repeat dozens of times for approximately two
miles until you achieve your goal.
In the luxury of our civilization, business leaders often
fall to the temptation that big thoughts are the path to overnight
success. That's true in some cases, but its like winning the lottery. Most often, success results from successfully implementing a strategy over and
over and over again. Humility helps you
to discipline yourself to do that.
But, what about creativity and innovation?
How does plodding along the trail step by step spark
creativity and innovation?
Enjoying the Top of Second Mountain Pass (Day 3)
Enjoying the Top of Second Mountain Pass (Day 3)
Physical activity has some things in common with
meditation. Focusing for a long time on
a limited number of physical actions frees up parts of your mind to become open
to bigger concepts. By focusing on
avoiding twisting your ankle on each rock step as you walk, you eventually
begin to understand how it all fits together.
Stopping and resting provides opportunities to look around you at the mountain passes, the glacier covered mountain peaks, the lush rain forests and the mountain streams. When every step is a battle as you struggle to suck in more oxygen from the thin air, you appreciate what you are seeing and feeling more than if you are taking a casual stroll.
Stopping and resting provides opportunities to look around you at the mountain passes, the glacier covered mountain peaks, the lush rain forests and the mountain streams. When every step is a battle as you struggle to suck in more oxygen from the thin air, you appreciate what you are seeing and feeling more than if you are taking a casual stroll.
Business Rule
Number 3 - What Goes Up Must Come Down.
Having reached the summit of Dead Woman's Pass at 13,776
feet above sea level, we celebrated and rested for about twenty minutes and then
began the process of descending the other side of the pass. Over the next day and a half, we descended between
six and seven thousand feet in altitude primarily by climbing down several thousand stone
steps.
This raises the issue that many successful businesses fail
to consider. What is success? Once you achieve success, what do you do
next? You can't stay at the top of the
pass forever.
·
It's too cold.
·
The air is too thin.
·
You can't carry enough food and water on your
way up that you can afford to linger too long at the top.
Map Showing Altitude Gain and Loss
Map Showing Altitude Gain and Loss
This is an issue many new businesses face after achieving initial success. How do you consolidate your success to withstand the inevitable counterattack by competitors? What's your exit strategy? If you don't plan and execute your descent carefully, you and your business could wander aimlessly and fall off a cliff in the middle of the night.
Business Rule
Number 4 – Leadership Means Creating Teams that Work Together
The best leaders create teams where team members help one
another. Our guide Richard was such a
leader. Richard has been through the
Inca Trail literally hundreds of times during his ten -year career as a
guide. He could probably do the entire
26 miles of the Inca Trail in two days by himself walking backwards. But sprinting through the Inca Trail alone isn't
his job. His job was to get six
Americans, two Argentines and one Brazilian and their porters safely and
efficiently through the four-day journey in the wilderness.
Richard is a professional guide. He often referred to the Inca Trail his
office.
The first thing a professional like Richard acknowledges
is that it's more a one-man job. To
achieve the goal, Richard had to motivate these total strangers to work as a
team to help one another.
Richard wasted no time in building teamwork. It started with teaching the group a magic
phrase. Sorry, I can't tell you the
magic phrase. Richard is entitled to his
trade secrets. Then, as soon as we
started the first and the easiest day of the trek, Richard repeatedly talked
about how we were all a family. Richard
continually reinforced the sense of family – especially at meal times.
The net result of all this psychological preparation by
Richard was that by day 2 of our trek which was the most physically demanding
part of our trek as we gained 3,000 feet in elevation, the strongest hikers in
the group often waited for the slowest hikers to catch up. That gave us slower hikers the encouragement
we needed to complete our journey.
So, what happens with your business team? Do your best performers race ahead to
maximize their compensation? Or do your
best people teach other team members how to improve their performance?
If your people aren't functioning as a team, whose fault
is it? Did you hire a bunch of selfish
people? Or did you hire normal people,
but you failed to take on the difficult leadership role of building a team that
works together?
Our Porters Made It All Possible
Carrying Tents, Food Etc.
You might ask yourself: "Why should I encourage my best performers to slow down a little and help other team members?" Let's look at this from a strictly return on investment (ROI) point of view. If one of the hikers in Richard's group gives in to altitude sickness or just to being tired and decides he can't complete the trek, it creates a problem for the whole team. You can't just let a sick person wander home without help from the middle of a wilderness. You might send a porter or two to help them get back to civilization safely. That leaves you with fewer porters to carry the tents, food and other items. The whole expedition suffers when you start losing the weaker members.
Our Porters Made It All Possible
Carrying Tents, Food Etc.
You might ask yourself: "Why should I encourage my best performers to slow down a little and help other team members?" Let's look at this from a strictly return on investment (ROI) point of view. If one of the hikers in Richard's group gives in to altitude sickness or just to being tired and decides he can't complete the trek, it creates a problem for the whole team. You can't just let a sick person wander home without help from the middle of a wilderness. You might send a porter or two to help them get back to civilization safely. That leaves you with fewer porters to carry the tents, food and other items. The whole expedition suffers when you start losing the weaker members.
Of course, your business isn't an expedition. But by encouraging your best performers to take
a little time to share their experience and expertise, you can improve the
overall performance of your entire team.
You do the math. If your top
performer decreases output by 10%, because of time sent helping others, but
nine other people on your team improve their output 10% each, is your business
stronger or weaker?
Hiking Team from
Argentina, Brazil and USA
Led By Peruvian Guides and Porters
Refuels at Mealtime
Hiking Team from
Argentina, Brazil and USA
Led By Peruvian Guides and Porters
Refuels at Mealtime
To make this work, you have to promote people who are good teachers. Some people can't transfer their skills to others. And you have to compensate your top performers for
taking the time to transfer their skills and help other team members perform
better. In business, you get what you
pay for. If you only pay people for their
individual performance, don't expect your people to divert their time and
effort to things you aren't willing to pay for – like helping their teammates
improve. They logically assume that your
nice words about teamwork are just that – nice words. Compensation plans determine what you truly
value. What do your business' compensation
plans communicate to your people about what you and your busininess.
Business Rule Number 5 – One Technology Leads to other Technologies.
Business Rule Number 5 – One Technology Leads to other Technologies.
When you are climbing up and down thousands of stairs
built five or six hundred years ago, you sometimes think about the people who
built all these stairs. I won't tell you
everything I thought about the Incas and their thousands of stairs. My mother taught me if you can't say
something nice about the dead, don't say anything.
But facing all those stone stairs, you naturally ask yourself
the question: WHY?
Why would people spend so much time and effort building so
many stairs on the sides of mountains?
The Incas were empire builders. They wanted ways to connect their thousand
mile long empire and effectively govern it from their capital in Cusco. Roads allowed the Incas to transfer people
and food from different parts of their vast empire when needed, including in
battling neighboring tribes. So, roads
gave the Incas a competitive advantage over rival tribes.
But why build all the stairs? Why not build roads and paths with gradual
inclines like in Europe?
The answer is a good example of how one technology or tool
influences the other technologies and tools we create.
Stone Steps Along Inca Trail
Stone Steps Along Inca Trail
The First of 3,000 Down (Day 3)
The Incas had no animals like oxen, mules and horses that
were strong enough to pull carts and wagons like they did in Europe. South America's famous llamas just don't have
the strength to pull heavy carts and wagons up mountain roads. If you don't have carts and wagons and
animals to pull them, roads that have gradual inclines aren't a necessity. So, the absence of some technologies or tools
(like animals and wagons with wheels), influenced what types of roads the Incas
built.
Is your business repeating the mistakes the Incas
made? Is your business investing too
much in infrastructure that will soon become outdated as technology changes? Stay ahead of the technology curve. It's not enough to just know the technologies
that are available today. Make sure the
technology your business will invest in today either will last a long time or
is modular and can be replaced or upgraded at low cost. Someone in your business or a consultant
needs to know the technologies that are being developed that could make your
current business infrastructure as obsolete as roads made of steps in a world
that moves on wheels.