Q. What is your advice to entrepreneurs seeking funding or growth opportunities if the credit and capital markets continue on their current course?

A. My advice is that they melt wax into their ears and go forward. If they are waiting for wonderful credit and capital markets, they probably aren't entrepreneurs. They're much more likely to be consultants and bankers looking to quickly flip a company.

Kawasaki's latest book, Reality Check, is being released this week by
Portfolio. The book's 94 chapters span 500 pages, but Guy is an extremely entertaining author and it's a surprisingly easy read. The book was one of October's Jack Covert Selects.

Geoffrey Colvin has an article in the October 27 issue of Fortune adapted from his new book, Talent Is Overrated, which was itself an expansion of his popular cover story for Fortune in 2006. The article makes the argument that discipline and training breed the skills that drive greatness, not innate talent--if such a thing even exists:

A number of researchers now argue that talent means nothing like what we think it means, if indeed it means anything at all. A few contend that the very existence of talent is not, as they carefully put it, supported by evidence. In studies of accomplished individuals, researchers have found few signs of precocious achievement before the individuals started intensive training.

To view a video by the author that sums up his ideas in 4:02 minutes, go here. He also has a guest post on the Fortune Blog.

For the latest "Creative Disruption" installment in Forbes, Scott D. Anthony, lead author of The Innovator's Guide to Growth, teamed up with Clayton Christensen, author of the best-selling Innovator's Dilemma and two more books this year--Disrupting Class (about education) and The Innovator's Prescription (about health care). They tell the story of Proctor & Gamble's Align group, which teamed with Innosight (a consulting firm the authors are affiliated with) and launched it's IBS medication online instead of the way P&G traditionally introduces products--in a huge box store.

Usually P&G product managers go big with a launch at a big chain like Wal-Mart (nyse: WMT - news - people ) backed up by a promotion and ad campaign costing tens of millions of dollars. Work with Innosight, including a two-day workshop, helped the Align group reframe its approach to one that was more "invest a little, learn a lot." Instead of trying to come up with a definitive answer about Align's potential, members of the group identified which assumptions would have to be true to create a business about which P&G could get excited. Two questions they zeroed in on: Would doctors promote the solution? Would consumers take the probiotic every day?

The article mentions that P&G's CEO "[A.G.] Lafley expects business units to allocate up to 30% of their innovative resources to disruptive innovation." Lafley himself has a great book on innovation out this year entitled The Game-Changer, co-authored with the brilliant Ram Charan.

And finally, if you haven't been keeping up with Charlie Rose lately, you're doing yourself a disservice. He had David Snick, author of The World Is Curved, on last Thursday's show (after 2008's Nobel Economics Prize recipient Paul Krugman). Other recent guests include Paul Volcker, Henry Paulson, Ace Greenberg, and, last Monday, a panel of John Doerr, Kleiner Perkins, Jeffrey Immelt, Anand Mahindra , Meg Whitman and James Wolfensohn. Good stuff. If you're trying to stay current with and understand the depth of the issues our economy is facing, stay up a little later each night and watch Charlie Rose.

Lincoln and Roosevelt are heralded as great American leaders in times of crisis, and their vision and fortitude are recognized as drivers of their historic accomplishments. However, we think their greatness had far more to do with their abilities to be catalysts for network effects.

If we're right, it reveals a very different interpretation of the calls we're hearing for "leadership" to restore confidence in our economic system. In fact, there's a good chance that no government policy gesture or announcement will mollify the worries of businesses and consumers, let alone stabilize the markets.

Confidence must emerge from the networks in which we all participate. We need to lead ourselves.

This raises intriguing issues and opportunities for corporate marketers looking to craft a way forward.

"In times of uncertainty consumers rely more on trusted relationships when making purchasing decisions," says Dr. Brent Simpson, an expert at the University of South Carolina who specializes in understanding how social order is formed.

Stanford University's Matt Jackson, a leading social network theorist, adds: "People's friends and trusted social relationships are important in influencing their behavior, and people learn from and emulate their friends. Attitude certainly can play into that, especially in turbulent times.''

So what does this mean for businesses directly impacted by the financial crisis, like banks, brokerages, and insurance companies, as well as any consumer business facing the prospect of declining (or less profitable) sales?

First and foremost, you can't brand your way out of it. You can't rely on spin doctors to declare your path through the crisis; your customers must see and verify it. While your hired guns are hatching ads and press releases to statically "position" the situation, your networks are trading information and defining it in real-time.

And that information, whether accurate or not, has absolutely nothing to do with how the brand has been envisioned, promised, or promoted. Every network is founded upon the tangible realities of action and reaction, just as the mechanism of their function is cause and effect.

How do you empower these networks to step up and lead?

Know your networks. Invest in software to map connections between people and content.

Move your enterprise closer to customers, employees, partners and investors. In the past we talked about flattening hierarchies; now it is time to integrate internal & external sources of value.

Trust opportunities that emerge from the exchange (don't just talk, and certainly don't lecture).

Make information a utility as ubiquitous as electrical light. If what you share isn't affirmed and forwarded, don't repeat it... instead, recast or re-imagine it, and find new ways to prove it to your networks.

Demand feedback and ideas.

Stop looking for "home runs" and play "singles and doubles" by finding small wins, frequent trials. Make constant adjustments. Allocate resources to winners and abandon losers without blame.

The larger revelation of today's various crises is that the era of symbolic branding is waning, if not over. The woes of the financial institutions have graphically illustrated to us why.

It was always untenable for lenders to ignore the details of weak/bad relationships and to expect instead that homes or property (i.e. commodities) would appreciate in value with no accord to the strength of home owners (i.e. the source of value that differentiated the commodity). Instead of accessing and fostering the relationship to make the loan a better product, the banker chooses to focus on the derivatives.

All businesses face similar risks. From toothpaste to software services, consumer brands invite significant downside threats when they focus on manufactured identify and perception, and not on the drivers of true business strength: connection, interaction, involvement, collaboration, consumption and the other aspects of human behavior.

There are no brands, or businesses, without the networks of people who make them real. It is in, and through, the behaviors of these networks that the Lincolns and Roosevelts for our business and social communities will ultimately arise.

Jonathan Salem Baskin recently released the book Branding Only Works on Cattle. Catch Jonathan's blog at http://dimbulb.typepad.com.

Michael Cayley recently released the ebook Introducing Social Capital Value Add: Value Based Management for the Networked Age. Catch Michael's blogs at www.socialcapitalvalueadd.com and www.memeticbrand.com.

Check it out here.

The comments are also very good.

WHERE ARE THE GREAT COMPANIES?
By Jim Champy

For years I have been searching for great companies. What I have found is that there are none. Greatness is an aspiration - a very honorable one. But no company is perfect, even if it performs well year after year.

Greatness, like, many objectives, is in the eye of the beholder. One simple test for greatness is how a company is experienced by its constituents - its customers, its associates, its owners, and business partners. In my most recent research, I looked at over a thousand high-growth companies and found many companies that are very good. They treat all of their constituents well and, in their own unique ways, aspire to greatness.

My search was driven by a desire to find companies that have new business models, delivering new products and services to customers and executing in new ways. I have written about my discoveries in OUTSMART!, my latest book. Although I could find no single formula for what creates a good - or great - company, I did find some shared characteristics.

Ambition: The leadership team of every good company has a great ambition for the company - usually one that addresses an unmet customer need. The ambition is not one of personal greed; it's about building a company that delivers on its promise and does it with a unique quality. My experience over the years is that it takes a great ambition to create even a good company. I was inspired in my research by a company called Minute Clinic, whose ambition is to change how healthcare is delivered, for the benefit of everyone involved in the healthcare system.

Customer: Every good company begins by meeting a customer need. That need is often deeply understood by the company's founder because they, themselves, experienced the need - and saw how that need was not being well met. Sometimes the founder hands off the leadership of the company to someone else who operationalizes the idea. But that wasn't the case in the example of Sonicbids, a company that saw the unmet needs of thousands of independent musicians and performers and whose founder has led the company to a unique position in the music business. This music business for independent performers is a 13 billion dollar a year market, that no one saw or had the appetite to organize until Sonic bids came along.

Focus: Good companies stay focused on what they know and can do well. When companies search for new ideas, they often drift into unknown territory and get in trouble. Good companies just keep growing and expanding into familiar territory. Shutterfly is a wonderful example of a company that's growing, but it grows by expanding within the social expressions business, helping communities of people share photographs in hundreds of ways. Niches can be very large markets.

Execution: Satisfying a customer requires relentless attention to execution. Building a company's capability to deliver makes the difference between turning a great idea into a business or failure. But execution is not just about delivering a product. It's also about service. Over the years, I have observed that technology companies are particularly bad at recognizing and responding to the service needs of their customers. Counter intuitively, high-tech requires a lot of high-touch. Partsearch is a company that knows what it's doing with customer service, helping customers find what they need in an ocean of millions of parts and accessories for consumer electronic products. Partsearch has tamed chaos in its industry.

Inspiration: Smart companies engage all of their associates in building the business, from idea creation though delivery. Ideas don't just come tops-down; they also come bottoms-up and from every other direction. Everyone in the company feels that they own a piece of the action and are accountable for how the company performs. The inspiration for a company starts at the top, but good leadership drives that inspiration deep into the company by engaging people broadly in decision-making. People are more than mechanical parts of the enterprise, and the more they are allowed to see customers, the better their business sensibilities.

These are some of the behaviors that I have found in the good companies I have studied. My ultimate test of the quality of a company is whether I would like to work there. The good news: I see many high growth companies where I would work. They are smart companies, in multiple industries, that are operating quite brilliantly.

Author Bio
Jim Champy is one of the leading thinkers in business. His first book, Reengineering the Corporation: A Manifesto for Business Revolution, helped transform the corporate world. For more information, please visit www.jimchampy.com.

Check out Outsmart!: How to Do What Your Competitors Can't!

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The Nice Guy Bill of Rights

It was a blustery day in November of 2004 when my friend Russ Edelman first came to me with the 'nice guy' idea. The concept - which had been percolating in his mind for several months - was to come up with ways to help people in the business world who suffer from Nice Guy Syndrome.

We discussed it while sitting at a local restaurant in our hometown of Newburyport, Massachusetts. The plight of nice guys really resonated with me, but we both realized that we had to put some meat on the bones. It needed a hook; some concrete ideas to rally behind. We needed to find ways to empower nice guys and help them overcome the behaviors that limit their effectiveness.

We quickly stumbled upon the idea of a Nice Guy Bill of Rights. Instead of being passive or feeling victimized, we wanted nice guys to realize that they have the inalienable right to speak their minds or say 'no' to things they didn't want to do.

So, lacking a pad of paper, we literally asked for a stack of white paper napkins from the waiter (true story!) and started to jot down various ideas for our Bill of Rights. After many months of pruning and tweaking, we settled upon these eight strategies to help nice guys be more successful:

1. You have the right to SELF-AWARENESS Before you can set a course for where you want to go, first you must be completely honest about where you are. A thorough knowledge of your strengths and weaknesses is extremely valuable.
2. You have the right to SPEAK UP - Overly nice guys often struggle with speaking their minds and expressing their opinions. The ability and willingness to speak up is essential if you want your ideas to be heard.
3. You have the right to SET BOUNDARIES - "No" seems to be the hardest word for nice guys. Frequently they choose to be the proverbial doormat instead of setting a boundary that clearly defines what they will (and won't) do. Nice guys must set good boundaries and consistently reinforce them as needed.
4. You have the right to CONFRONT - Conflict is a challenge for most people. It is especially difficult for nice guys, who instinctively want to get along with everyone. It is very important to learn to address issues directly and overcome the fear associated with confrontation.
5. You have the right to CHOICE - Nice guys often feel powerless, as if they have no choice in a given situation. The truth is that they frequently give away their power to choose. The key? To own your choices and, without guilt, to make the right decision for you and your organization - even if it means people will be angry or disappointed with you.
6. You have the right to EXPECT RESULTS - Maintaining accountability sometimes makes you unpopular. Regardless, to be effective nice guys must be willing to hold others (and themselves) accountable for results, schedules, commitments, quality, deliverables, and budgets, to name a few.
7. You have the right to BE BOLD - Taking risks is extremely challenging for nice guys. If they want to succeed at a high level, however, they must be willing to go beyond their comfort zone and be bold.
8. You have the right to WIN – The business world is highly competitive. Nice guys, however, sometimes shy away from competition because they aren't comfortable with "winning" (and other people "losing".) While a win/win scenario is ideal, it is not always possible. Everyone is ultimately best served when the best ideas and solutions win, not when nice guys "play small." Nice guys owe it to themselves and their organizations to do their absolute best at all times and embrace winning.

Which of these 'rights' resonate deepest with you? Can you remember a time when you struggled with one of these principles?

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What about Nice Gals?

When talking about our book, Nice Guys Can Get the Corner Office, with friends and co-workers, a female colleague sometimes asks, "What about women?! Are we excluded from your book?"

Absolutely not. The term "nice guys" is not gender specific. It applies to both men and women. And while we readily admit the three authors on our team are men - and can only know the workplace experience first-hand from the male point of view - we have gathered input from many women who took our surveys and sat down with us to share their stories and experiences in the workplace.

The bottom line is that many women suffer from Nice Guy Syndrome as much (if not more so) than men. The strategies we offer in our book are just as relevant for women. We all may struggle with finding a balance between the desire to be nice, compassionate, empathetic, and understanding with the need to be strong, decisive, and tough at the same time. In fact, because of the way they are often conditioned by society, women tend to be more predisposed to be self-sacrificing and want to please others than men. Several women told us that their maternal instincts kick in at work. They want to nurture and take care of others, which can make it extra difficult to say 'no' to a request or, even worse, fire an employee.

There is, however, one major difference in the way that men and women experience the effects of Nice Guy Syndrome - the way that others perceive their behavior. If a man tends to be overly nice and behaves in ways that are considered too agreeable, passive, and highly compassionate, he may be considered "soft" or labeled a "wuss." For women, that nurturing behavior likely wouldn't raise an eyebrow.

By contrast, if a woman is forceful, outspoken, decisive, powerful, and bold, she runs the risk of being called the "b" word, whereas a man would merely be considered a strong, tough leader.

Fair? No, but it's all too common. Regardless, it doesn't change the premise of our book - that a balance is needed between empathy and emotional intelligence on one hand and strength and assertiveness on the other. Leaning too far in either direction will inevitably lead to problems for you and for others.

Do female readers experience Nice Guy Syndrome in the workplace? Is it prevalent in your office? Do you think there is a difference between how men and women experience this problem?

This bring ups the whole question of the author Jim Collins' suggested methodology and whether it's one business leaders should be following. There are plenty of great comments on Levitt's post to go read on this. The same criticisms are leveled against Collins' prior book Built To Last and the classic In Search of Excellence by Tom Peters and Bob Waterman. Nassim Nicholas Taleb's Fooled By Randomness and Phil Rosenwig's The Halo Effect are both cited for their critical views of predictable methodologies.

This has always been my belief: all of these books are directional correct. The principles they describe for success are all worth pursuing. We get a little stuck on the empirical side of the debate. It is true that these authors hang their hats on the research to give their findings legitimacy, but we can't completely dismiss everything they have to say every time a highlighted firm falters.

So, for your consideration - - - take time to look at the titles again (maybe for some of you - this will be the first time):

The Nonverbal Advantage Carol Kinsey Goman	Celebrity Experience Donna Cutting
Zenobia Beth Kephart et al	Myself and Other More Important Matters Charles Handy

** Also new out this summer: The paperback edition of The Ultimate Sales Machine by Michael Gerber, Jay Conrad Levinson and Chet Holmes ** ]]> Book Reviews 2008-07-24T09:36:22-06:00 http://800ceoread.com/blog/archives/008249.html Jack and I have been pretty quiet on the blog over the last year. The process of writing a book took more time than I ever imagined. I have a completely new appreciation for the authors who have come... 8249@http://800ceoread.com/blog/ Jack and I have been pretty quiet on the blog over the last year. The process of writing a book took more time than I ever imagined. I have a completely new appreciation for the authors who have come before me. Seth suggests everyone write book in a post on his blog today, and I agree it is a great idea, but understand the work you are in for.

Anyway, this post is really about the first chance I have had in months to spend the morning looking through books. I promise more posts in the coming weeks, but here is what has caught my eye this morning.

• The Word of Mouth Manual Volume II - Dave's new book is worth a look. You can download it for free or buy it printed on paper.
• I am reading The Breakthrough Imperative. This is a book from Bain & Company. I have read enough of their partners' work to finally say that I like their message. I am just getting started, but I think this is a culmination work for the company combining the ideas of Fred Reichheld, Chris Zook, and others. More on that soon.
• There is a new second edition to The Age of Heretics by Art Kleiner. Too many people have told me that I have to check this out. I am going to read the book and then have Art on for a podcast.
• I am a huge fan of the Memo To the CEO series, which we post the Jack Covert Selects for on Friday. Check them out.

Enough for now. And I promise again to get back to writing more here.

You: The Owner's Manual - An Inside Guide to the Body that Will Make You Healthier and Younger - One of the best books on how to take care of yourself.

The Pixar Touch: The Making of a Company and - The Celebrity Experience: Insider Secrets to Delivering Red Carpet Customer Service - These are great business books that are actually fun to read!

Keeping in tune with The Celebrity Experience (in time for the Tony Awards) you may want to check out Backstage Pass: Broadway Bares or even Always by My Side: A Father's Grace and a Sports Journey Unlike Any Other - just in time for Fathers' Day.

If you nothing above piqued your interest to aid in getting your mind off of day-to-day rituals, here's a spattering of titles I just finished reading:

Stoner

Inside Steve's Brain

Truck: A Love Story

The Sparrow

You can even give your eyes a rest and get something on a Compact Disc !!

Of course these are just some suggestions.... if you want to pick one of these or comment on what you like or want to read, please do so! It will help for ideas to get everyone to take a little break this sunny season!

Drucker told me what he felt were his most important books. The first one was no surprise, but one or two if the others were.

• Concept of the Corporation (1946)
• The Practice of Management (1954)
• Managing for Results (1964)
• The Effective Executive (1966)
• The Age of Discontinuity (1969)
• Innovation and Entrepreneurship (1985)

When you want to know, go the the master.

Dr. Seuss' Lorax's Plea: Stop Cutting Trees!

By Daniel Horgan, Special for USA TODAY

As the world's rain forests disappear, one of Dr. Seuss' most powerful and controversial characters has been summoned back into action to issue a post-millennium warning.

The Lorax, the story of a furry-cheeked little creature who fights to save the environment from the greedy Once-ler, has been a perennial favorite of kids and parents since it was published in 1971.

Now, Dr. Seuss Enterprises is teaming with Conservation International and Random House to use The Lorax to help save the forests.

The book is being reprinted with a special environmental message that describes "The Lorax Project," which is being launched today in honor of Earth Day. Ten percent to 15% of profits from the book and from Earth-friendly consumer products featuring the Lorax's image will be used to stop deforestation in Madagascar, Brazil and China.

Read the rest HERE!

Order the book HERE!

Which is why I could not have been more surprised and delighted when I finally got to read a copy of their new book Nudge. Despite my initial misgivings, I'm halfway through it, and this is a book I love.

The main point of the book (paraphrased) is as follows:
Since people don't think very hard about the choices they make, it is a lot easier to trick them into doing what you want than to try to educate them or incentivize them to change their behavior. There are many ways to trick people, but one of the easiest is simply by giving thought to the way choices are arrayed to them, or what they call "choice architecture."

Go to Levitt's full review.

Following are some titles that deal with empowerment. Just a little reminder for those who think that one person can't do anything to change the way another person, or for that matter, a company thinks.

Zapp! The Lightning of Empowerment by William C. Byham

Control Your Destiny or Someone Else Will by Noel M. Tichy and Stratford Sherman

Heroz: Empower Yourself, Your Coworkers, Your Company by William Byham and Jeff Cox

The Alchemist by Paulo Coelho

The Dream Manager by Matthew Kelly

You're in Charge, Now What? by Catherine Fredman/Thomas J. Neff/James M. Citrin

Getting it Done: How to Lead When You're in Charge by Roger Fisher

Managing Your Boss by John J. Gabarro and John P. Kotter

The last page is Elizabeth Spiers' (founding editor of Gawker and Dealbreaker) article "Library of the Living Dead." She starts out by contradicting all that our parents and teachers have taught us for years:

...reading does not necessarily make you smarter. Sometimes it doesn't even require you to think. I would send you a copy of Nicole Richie's novel, The Truth About Diamonds, as demonstrable proof, but there's a clause in my contract prohibiting cruel and unusual punishment. Instead I'll point you to the modern era's second-worst literary promulgator of intelligence reduction: your local bookstore's business section.

Next comes the critique of the business genre's cliches, "12-step-ification," and seemingly empty promises (four-hour workweeks, loads of money and personal growth); all of which, Elizabeth would say, don't amount to much or anything at all really. Rather "they [business books] create the illusion of progress simply by adding another layer of busyness." Ouch.

Really, a comparison of Nicole Richie's writings to that of business authors? Okay, I'll be the first to admit that many books lack in substance and rightly deserve such criticism. The first set of titles used to back up this point are Jim Cramer's Stay Mad for Life and Donald Trump's Think Big and Kick Ass both of which, she points out, have different formulas for success and both of which are currently on the best seller list.

To Elizabeth's point, the best seller list is certainly not where I'd start in my search of a business book. (And my apologies here to Surowiecki because I do partially adhere to the Wisdom of Crowds philosophy, just not in best sellers.) In business books, like in music, the top titles not always the best of the best, rather they're what the masses are buying. Take music. Though I haven't done any strict calculations or research, I'd imagine that only a small portion of the music covered by Rolling Stone appears on top 10 lists. Nonetheless, ask nearly anyone who follows music closely and they probably subscribe to Rolling Stone. I doubt the same crowd would consider Leona Lewis (currently toping iTunes best seller list as of 4pm CST yesterday) to be one of the greatest.

Good or bad, best seller lists operate in a catch-22 manner or more simply, inertia. Once a book is on the best seller lists (through a number of clever PR pitches, handing books out to each member of a packed audience, and special Amazon giveaways), people start talking about the book. That leads to more people buying the book, which leads to bookstore restocking. Which leads to more people buying the book and better placement on the best seller lists, ultimately starting the process all over again.

That's not to say every best seller fits in this category. There are a number of best selling business books worth reading, many of which have been featured in Fast Company and whose authors have regular bylines there. Case in point: The Wal-Mart Effect and Made to Stick. Yet, if a best seller list is your only reading guide, you'll miss a number of really great titles. Books that are provocative and will compel you to think or act differently.

Which brings me to another of Elizabeth's points:

Business books let us amble zombielike through our careers freeing us from responsibility for the quality of our own decision making. Better to delegate that responsibility to other people--Jack Welch, perhaps. It's a fresh spin on the old saw that no one ever got fired for buying IBM: No one ever will get canned for leaning on something with a Ken Blanchard blurb on the front cover.

Yes, we should stand on our own feet and rely on our own critical analysis. It'd be foolhardy for me to take Jack Welch's lessons and replicate them exactly here at 8cr. Not every lesson, as Elizabeth explains, works for every situation. I imagine it's for that very reason that 11,000 business books are published every year. There are at least 11,000 different ways to present a problem and solution; certainly not every one merits our time in reading nor application.

But we learn through exposure to and experience with both the good and bad, the smart and the not-so-smart. And certainly, being exposed to Welch's ideas makes me a better prepared, better informed business woman. Experience via a $24.95 hardcover is not a bad way to arrive at new ideas and solutions.

Elizabeth's last point is that if we cannot become more skeptical of and less dependent on business books, we should simply move business best sellers to the self-help section. I would argue that at least half of business titles are self-help (the other part being books on new ideas or trends, a la The Long Tail); and I mean this in the best of lights. Self-help has long been stereotyped as the answer for the spineless or those who need a more regular pat on the back.

Yet, many business books are meant to help us help ourselves--help us manage better, help us start up a company, help us communicate better, etc. That is the very definition of self-help. And I don't think there's anything wrong with that. Self-help doesn't have to be preachy (yes, you will find these preachy, self-help books on the best seller lists). If I'm a horrible manager, I'm going to pick up Growing Great Employees to learn how to improve my skills. If I'm not sure where to start when evaluating customer satisfaction, I might start with The Ultimate Question.

If the question is whether every best seller is worth reading, I'd respond without a doubt, no. If that were true, we (as a company) would not exist in the blogosphere. If the question is whether business books are worth reading, they are. Not every single one of them is worth reading. And finding the right one is not always easy. To stand on my pulpit here, that's what we endeavor to help with--finding the right business book for you. Please, don't be afraid of the business book aisle, many a title is worth a gander.

[Stepping off the pulpit.]

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* Amy's an animal trainer -- a whale trainer, in fact. The Heath brothers apply her lessons to the training of bosses. Hence, for the purposes of this post, she's listed as a business book author.