1,000 days of running is when you run every day for 1,000 days. It is exactly what it says on the tin.
For me 1,000 days of running means this. I will
- Run every day
- at least 5km, or
- 30 minutes
There’s no limitation on how fast I have to run and this means that I can still go out in a wheelchair if I break my leg, have a fever or whatever. I don’t get days off, exemptions for work or family crises, or because I feel lazy. 1,000 days of running means 1,000 continuous days of running.
If you are curious as to how I am doing you can check my progress on Strava.
Where am I going to run?
Most days I plan to go trail running in the jungles of Kuala Lumpur and central malaysia. Snakes, leeches and mosquitoes are constant hazards. I tend to get more injuries from headbutting trees when I trip and skinning my shins on brambles though.
I don’t like running on roads so a typical day will be 45 minutes of narrow woodland paths with stupidly steep hills. At the weekends the hills are steeper and the distances longer.
Why am I doing this?
I was reading Grant Cardone’s book about over doing things and I realised I needed to shake things up a bit. My business wasn’t doing well at the time and I needed to take some extraordinary action.
As importantly I wasn’t running much. I love running in the jungle. The cool stillness as the brown path slips away by my feet is responsible for much of my best thinking time. As I slip into a state of flow many thoughts, ideas and experiences come together in new ways. Often these combinations are what transforms customer businesses.
To me it’s a bit of a black box. My mind is a total mystery. The process is however pretty well known. Give someone a lot of data, a level of mastery in his field and set them to some repetitive activity that requires the conscious brain to focus. The result is that the subconscious brain is able to work very effectively on the problems in front of it.
As I said. Good for my clients, my life and me.
I’d done a 30 days of running back in 2018. It had been an amazing experience as I hit the trails every day for a month. I’d suffered. For the first week I’d really enjoyed running fast. Then the impact of overtraining and the lack of rest days caught up with me. The last couple of weeks were a grind and a struggle.
So when I read Grant’s book more running was at the forefront of my mind
Do 30 days of running again?
Be there, done that.
100 Days of running?
Boring. It’s just more of the same. Nothing special
I should point out that I’ve done several Ironman races, more marathons than I can count, half a dozen trail marathons and several ultras. None of these were exciting enough to get me going with a good dose of vava voom!
1,000 days of running?
This was a stupidly large number. I rolled it around in my mind, sucking slowly at the idea. The more I played with it the more intense thew flavour became.
If I could do it it would solve many problems in my life.
I am notorious for my burst approach to work. Working at something continuously for 1,000 days could provide a safety rope that I could hang onto during the bursts and the downtimes that follow them.
It would also help me fight off the middle aged spread and the slow flabification of my muscles.
Can I do it?
I have no idea. It scares me. It scares me a lot that I am telling people about it. Almost certainly there will be excruciatingly embarrassing moments if I fail. I made it past Day 2 so they won’t be THAT embarrassing
I don’t really care what others think, though the bragging rights will be awesome. I care because I have committed to an outrageous goal. A lot of my life has been spent committing to outrageous goals. Too many of them I haven’t managed to achieve to the level that I want to .
I care because I value running over almost everything else in my life. If I can’t do what I love most, out of my own free will, how then do I value my life?
I said to someone on LinkedIn that “I see it as a form of salvation”.
In some was it is. Each day as I run I use the pain and effort as a tool to burn away the stress and sorrow of every day life. For a while I recover the simplicity and joy of my childhood again. The burdens of the world are taken away
For me it’s a hugely important psychic and emotional challenge. My body, mind and soul will transform as I run. I wonder who I will become (is it a physical challenge? I’m not sure)
Do You have any Advice?
Do you have any advice? How would you approach 1,000 days of running? What do you think will be the biggest challenges? How should I solve them?
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To disrupt an industry or traditional business model you need a number of pre-conditions that include:
- technological innovations, that
- are widely known, and
- have thousands of new entrants building businesses, and
- one discovers a business (not technological) innovation that allows them to consolidate
David Seidman makes a good point referencing Michael Porter. We can make it an even simpler model.
Most markets exist in a state of equilibria or a slow changing state. How the players act remains roughly the same over a long period of time. Market share changes through mergers and acquisitions rather than through new offerings.
Market disruption when a force happens to move the equilibria from being relatively stable to quite unstable.
We see this most frequently when new technology is introduced.
The Waterwheel Disrupted Mediaeval Farming
Photo by Lydia Torrey on Unsplash
The watermill and the printing press both disrupted Europe massively. As peasants saw the possibility of water mills for processing grain and reducing their costs and labour there was a huge building boom. This was sufficient to slow the flow of some rivers as so much kinetic energy was being extracted.
The Printing Press
Photo by Hannes Wolf on Unsplash
Likewise the introduction of the printing press by Gutenberg et al disrupted the mediaeval copy shops who duplicated manuscripts by hand (whether monastic or secular).
If you look at both cases what are the similarities?
In both cases tens of thousands of entrepreneurs entered the market in the decade and the centuries after the invention/discovery. The disruption was caused in part by the technology, but to a much larger extent by the thousands and thousands of actors who realised the impact of the technology.
Let’s move a few centuries forward. We see similar massive changes to economies and societies with the invention of canals, railroads and oil.
The difference between the 19th century and the later mediaeval period was the evolution of the corporation and the ability to raise capital with less risk at a vastly larger scale.
Disruptive Canals
Photo by Boudewijn “Bo” Boer on Unsplash
Canals weren’t built by people. They were built by startups organised and funded for that purpose. In the UK, the canals disrupted the turnpike system and made it possible to economically move bulk materials long distances. This had been possible back in the time of Stonehenge and the Pyramids but at significant social and economic cost. Now you could move wrought iron from Coalbrookdale to Walsall in days, all for the cost of a reusable boat and the wages of a man and some mules.
Again England was not transformed by the technology. It was transformed by the flood (sorry) of new entrants building canals with something approaching mania across the country. Side note: My home town of Birmingham actually has significantly more miles of canals than Venice. It’s cheaper sn doesn;’t have so many tourists either!
Railway Disruption
Photo by Nick Fewings on Unsplash
Looking at railways you got a similar dimensional impact as canals. You could reduce travel times from days to hours and the capital cost of the infrastructure was vastly cheaper as it was easier to lay steel rails than pipe water (for example look at the immense efforts that the Chinese have had to apply to shipping water from the South and West to the North and west in recent decades).
Is this becoming repetitive, the technology wasn’t the disruptive force. It was the horde of new entrants creating railway companies, defrauding their investors and laying track at a stupendous rate.
This is where the corporation starts to have a significant role. Not only did it fund these investments, but as it was realised that many of the railways were subscale (there was a 2 1/2 mile long railway in Birmingham from Harborne to Monument Lane) there was increasing consolidation from thousands, to hundreds to the big four and to eventual nationalisation.
Oil and Disruptive Business Models
Photo by Zbynek Burival on Unsplash
Oil starts giving us a further understanding of how industry disruption works.
In all the cases so far the business model was simple. Invest in capital equipment and use it to deliver something faster and cheaper.
Watermills ground grain faster and cheaper freeing labour for additional crop raising
Printing presses copied books faster allowing more to be printed and knowledge and propaganda to be spread more easily.
Canals started the bulk movement of industrial good inland (coal had been shipped from Newcastle to London for centuries before this)
Railways moved people and goods even faster
Oil did lots of things. As an industry it was a lot more complicated. You had the oil wells, transporters, refiners and distributors.
Like the above industries it wasn’t the technology that was disruptive it was the thousands of new entrants who ripped up and polluted the US landscape.
Then you got the first really disruptive business model.
What happens if we integrate up and down the supply chain?
What happens if instead of just owning an oil well, of having a contract to move oil from A to B we expand our operations?
Let’s see if we can own everything?
And that is what Rockefeller and Standard Oil did. In 20 years he transformed the oil industry and the world. It was disruptive because he was seeing a different way of working. He had gone beyond the normal 5 forces in Porter. What he did was he took 4 copies of Porter’s diagram, one for each industry, stacked them on top of each other and created a new industry that no one else saw.
Let’s look at cars and hard disks?
Suprise suprise. It wasn’t the technology that cause the disruption. It was the thousands of new companies that piled in to what they saw as a new area.
Disrupting the Car Industry
Photo by Alex Blăjan on Unsplash
In the car industry Ford tried multiple times to create a car company that was profitable. He failed. There was just too much competition as thousands of other subscale operators tried to make cars.
His disruption was nothing to do with the car but how to make cars at scale and reduce their cost. It’s like he asked himself “How do I change the rules of the game?” Then he got out the business model canvas (not really) and pottered around a bit before coming up with the idea of mass production.
Disrupting Hard Disks
In hard disks what we saw was a wave of new entrants with every technological innovation. With every technological innovation the previous cohort of hard disk manufacturers was wiped out and it was only in the 4th or 5th generation that Western Digital and Seagate managed to achieve enough scale to avoid the same fate.
That’s a quick trip through history. There are plenty of other examples (Search, AI and ridesharing come to mind as well).
Winners Succeed with Business Innovation
In most cases the technology is clearly known and available to lots of actors. The actors then try with varying degrees of skill and luck to create big companies. The winners then are the ones who tend to succeed best at corporate innovation on a tactical level.
How do we do this better, faster, more effectively than anyone else?
Microsoft was one of many software startups at the time. It was the one that won with luck and good deal making.
What does it take to disrupt an industry or traditional business model?
If you want to disrupt a traditional industry you need:
- technological innovation, or
- significant social/cultural change, and
- widespread knowledge, and
- lots of new entrants, and
- innovative business practices that give you competitive advantage for long enough to scale.
The rules are different if you are disrupting at a smaller scale. A new medical device won’t disrupt the healthcare industry. It’s only disruptive if makes drugs, doctors or hospitals obsolete.
If that industry equilibrium is not challenged, if the roles of the players do not have to change radically it is not fundamentally disruptive.
That’s why Google and Uber are disruptive. Marketing agencies and taxi companies cannot continue to operate in the same way that they did before. Whatever happens to Google and Uber as companies that won’t change.
This is why I keep coming back to the Porterian idea of new entrants. A single disruptive company can be co opted by the existing market structure. Like a grain of sand the oyster of industry forms a pearl around it.
Disrupting an Industry Requires Mass Action
Disrupting an industry requires mass action. That’s why Schumpeter saw it as a wave. Individually all the new entrants are almost powerless. Together they have explosive power.
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Photo by Aaron Paul on Unsplash
This is a brain dump post to clear my head after a couple of conversations today stimulated my thought on using the business model canvas for assessing corporate performance
I was preparing to onboard a new client this morning. Its a business turnaround case. They’ve been running for a decade but slowly it’s all fallen apart for a number of reasons.
Right now I’m not sure how bad it is and I need a clear picture.
What I have done is to take the 9 aspects of the business model canvas and ask the client to give herself a score out of 10 for each of them.
The next step is to colour code the canvas using a similar schema to the Net Promoter Score. <7 = red, 7-8, yellow and 9-10 is green. Using those numbers seems about right as anything less than 7 is really unsatisfactory to a customer. How can we deliver great value if we aren’t performing?
How does this work in practice?
I’ve mocked up a couple of response I received in the last few minutes from a client that I started working with in October
As you can see back in October the business was not doing well. Remember a red score is anything less than 7. This is why I was brought on board.
As we move forward to March you get this
As you can see the performance has improved dramatically. Some areas are really good, and many of the problem areas have been stabilised and are satisfactory
It very clearly shows us where management needs to spend its efforts to bring the business up to speed. Those red areas are big weaknesses in the ability of the business model to deliver at the moment.
What is this based on?
It’s based on the CEO’s subjective assessment of performance in an area. That’s a valuable insight. Can we take it further and make it a more useful management tool
I think we can. I haven’t done this yet but I’ll approach it as follows
First, choose the 2 or 3 key metrics in each area. What they are, how they are measured is entirely up to the business.
Then define the range that is valuable. Your sales plan may say that you want $25 million in sales this month. That’s the target and so we’d define that as a 7 or 8. Sales of $30 million would be clearly green. Sales of $15 million would be clearly red. We can add in colour graduations to provide some nuance as required.
Extend this out for all the other segments as required.
In some ways, this is similar to the balanced scorecard. That’s a bunch of KPIs on a grid with colours
This is a Picture of the Living Business
Where this is different is that the business model canvas captures how the business model works. So you are looking at the health of the business and I suspect, given the correct choice of KPIs, see how all the moving parts interrelate and impact each other.
So a falling of conversion rates in a customer segment will be an indicator of a weakening value proposition which will then impact sales and the efficiency of marketing performance
As I said. This is a work in progress and I’d love to get your thoughts on this and how it can be developed. Send me an email if you’d like to try it out with your business
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This is a story of a girl called Ann and how she almost destroyed her startup in 5 easy steps.
Ann (not her real name) did everything that she was meant to. She went out into the market and did her customer discovery. She realised that there was a need for her services. Let’s say she ran a kindergarten.
She opened the first one. It was soon packed. Children loved her. Parent loved her. Staff respected her. Soon she opened a second and a third branch. She realised that she was on to something and also that she didn’t have the skills that she needed to run a successful startup.
So she reached out to the government and went on a six month startup bootcamp that taught her the essentials of marketing and business strategy. She opened the fourth and fifth centre. Everything was rocketing along.
Six months later she was on the verge of bankruptcy. She didn’t have enough money to make payroll or the rents for centres. Parents were unhappy and kids didn’t want to go to school. Staff were resentful and apathetic. They left almost as soon as they were hired.
What went wrong?
Ann failed in five big areas
Management
One of the things that Ann was very good at was looking to see what had worked in her previous roles in education centres and from her training as a psychologist.
Everything was beautifully labelled. There were checklists and forms, procedures and processes. It was all hollow.
Everybody in the five centres worked directly for her. That’s 100 people were her direct reports. There were no layers of supervisory or junior management between her and the front line staff.
As a result she got overwhelmed and lost focus on what needed to be achieved and focused on the urgent issues of the day.
It was then surprisingly tough to bring in team leaders and centre managers to run and manage each house for her. Who could do things as well as she could? Who could be trusted? As we did so the number of fires that we had to deal with dropped dramatically.
Sure the people we hired didn’t do as good a job as Ann. At first they didn’t. Being only 80% as good to start with they still solved many of the problems that Ann ha had to solve before. That freed up her time to help them solve the remaining 20% and suddenly Ann was able to spend her time on the bigger issues not the minutiae of managing 100 staff.
Delegation
Ann is a wonderful warm and trusting person. This is what makes her so successful with the parents and children. It’s why she can fill her centres with no trouble,
Ann was somewhat naive when she assumed that if she hired people to do the job they would do the job. She wrote the SOPs, worked out how to do the jobs on the ground (actually it was the other way around) and then left the staff to do it.
The trouble was they didn’t do it. They did things differently. They did things their own way. They did things partially. They didn’t do things at all. The system that Ann thought she had built wasn’t a system at all.
What she’d done was that instead of delegating responsibilities she’d abandoned them. “I have someone to do that. I don’t need to do it any longer” was what she said to me on one of our early meetings. She’d absented herself from what was meant to happen and so the person failed in their role.
What she should have done is to have held each person that worked for her accountable and responsible.
One of the ways that we did this was to use Michael Gerber’s ideas of position agreements. This takes the traditional job description and shows how the position delivers value to the customer and the company and what needs to be done to deliver that value. Then manager and staff sign it.
For Ann part of this included the regular monitoring of how the staff were performing. As we rolled this out we got more and more compliance of staff with the procedures and the staff churn dramatically improved.
There was recently a childcare centre reported where staff tied up and gagged problem children and put them in a separate room. The just before home time they take them out and give them sweets so they were happy when parents picked them up. We never had those problems, but given the way that we had run the business we were lucky to have avoided them
Finance
Photo by Fabian Blank on Unsplash
When we first looked at the books…. Well there weren’t any. I asked Ann how much profit we were making. She said that we were making 10–12% margin but couldn’t really explain why she was chronically and acutely short of cash.
Once we gathered all the receipts and invoices and created some initial accounts it turned out that her margin was actually -7%.
Why was she so off?
She had no system for collating all the numbers and putting them into a form where she could quickly judge her financial performance. Setting up an accounting and bookkeeping system is too hard/difficult for many entrepreneurs. So long as they are making sales they feel that they are ok.
The problem was that the more sales that Ann made the faster she was losing money and she didn’t know this!
Performance as a business was judged on the number of seats she had and how many of those were filled. Performance was judged by the amount of cash that came in each month and the balance of her bank account.
Many entrepreneurs keep managing like that for months after they have started. Things are going well. They haven’t had any problems. They don’t see the need to leave the critical issues of sales and operations to focus on getting the accounts looking right.
If they have no problems everything must be ok.
In reality the iceberg is very close and ignorance is just a fog that hides how dangerous it is for even longer.
Culture
90% of the staff stayed with Ann’s company for 3 months or less. She had to replace every position 4 times a year.
Think about the time and effort that took. Think about the quality of service and customer satisfaction! When I chose kindergartens for my kids the key criteria (after lots of bad choices) was how long the teachers had been at the school.
“Why have we got this problem?” I asked. “We hire school leavers and they see it as a temporary job before they get a real job” Ann answered. “Why do you leave so often I asked some of the teachers?”
“Ann is nasty and mean and doesn’t pay us enough and we have to work too hard!”
There was a big disconnect. Ann had found a short term and temporary solution to get her business off the ground in the early days. Hire cheap workers to demonstrate the MVP and keep costs down.
It was another time bomb. As time went by it started causing increasing damage and Ann didn’t realise that a solution had morphed into a problem.
She fixed this with many of the actions in previous points. lso there was a concerted push to say this is who we are. This is what the people who are at my business are like. And this clear statement of purpose filled the void that had existed up to that point. The staff responded and churn slowly dropped.
Vision
“So what is the big vision?” I asked “What is the exit strategy?” Ann was clear and determined “I want to look after children.”
Hmmm. For a long time Ann couldn’t really articulate where the company was going. So it just headed in a semi random direction. We have some spare cash. Let’s open a new centre with it.
Why they should open a new centre, why more children coming in would be a good thing was never really considered.
Ann didn’t have much of a clue as to where she wanted the company to be in 5 years or even what it would look like when it was finished. Another friend of mine in the education sector started a school about 30 years ago. She said it was always very clear. I wanted to create a wonderful school on humanistic principles that would b as good as an English grammar school. And I wanted to create a local version of Cheltenham Ladies College. And she did exactly that.
Ann couldn’t articulate that vision and so we had a bunch of mismatched centres serving slightly different segments all with different pricing. What looked coherent from the outside was the result of hundreds of sub optimal ad hoc decisions that had no guiding principle.
Eventually “I want to create a great kindergarten that gives working class kids the same start in life that middle class kids have”. Once she figured that out lots of things changed fast as decisions reinforced and supported each other.
Leadership
Ann got many things wrong. Perhaps the worst was how she approached leadership. She’s a charismatic person. When you meet her in her element she has an aura about her that makes you feel that anything is possible.
The thing is her leadership, right now, is the hands on kind. She needs to be in the centre’s being a shining example.
As the business grew she though the role of a leader i her company was to move to head office and be a ‘big boss’. Honestly she wasn’t very good at that. A bureaucrat she is not.
She tried managing in a style that didn’t fit her or the company. Staff cold cold, formal edicts from her in her air conditioned office. She was unapproachable and aloof as she struggled to handle the administrative chaos.
“Where can you do most good?” I asked. “I need to solve these problems” she said. “Tax, legal claims, unfair dismissals, overdue rent, government inspections”
Those were problems she had to solve. Frankly they were management problems that could be solved by any general manager. Where could she do the most good to drive the company forward?
For her it was running the centres and building them into great places to work that were filled with happy and smiling children. She found ways to compensate for her managerial weaknesses and filled that hole. Someone else takes care of those problems now. Funnily enough there aren’t nearly so many.
What Can we Learn from Ann’s Story
This is the story of Ann. Some of the issues are generalizable to all entrepreneurs. Some are specific just to her.
Stepping back the real problems came because Ann tried to run her business as a startup. Once she had product market fit and that she could deliver value to her customers at a good price she needed to start the process of changing it from a startup to a small company.
When you have something that works you need to stop being a startup. Staying a startup will kill you.
A startup is a chaotic type of company as it is still trying to figure out the best way to make money and grow. Once you have figured that out it’s time to start putting on the suits and building the spreadsheets and SOPs.
Structure, order and consistency are what is needed to create a company that will keep growing profitably and happily.
The big mistake that most entrepreneurs make is no recognising the change that they need to make and then starting the process to leave entrepreneurism behind to business ownership and management.
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How to Use Business Models To Dominate Your Industry
The Method
The Business Model Canvas developed by Alexander Osterwalder and Yves Pigand is a powerful tool for understanding your business model and then changing it to make your company more effective.
In this 3 session half day workshop we use the business model canvas to understand your company, division or unit’s current business model. We use traditional SWOT analysis on the business model to understand the pressures facing you. Then we generate alternatives to drive your future strategy forward.
This workshop is a fast and furious half day event designed to stimulate strategic discussions within the company using a common framework.
All the sessions are hands on. Everybody learns as they contributes. This helps develop strategic understand and a deep understanding of using the tool in practice.
The workshop can also be run as a full day or a two day session, or as part of a series where you review competitors business models and explicitly design strategies to counteract their strengths.
The Sessions
In Session 1 we create a business model canvas for your business or division. The 9 components of the business model canvas allow us to capture how a company of any size or complexity makes money and delivers value to its customers.
In this session we work through the canvas drawing input from your team to build a common understanding of the existing business model.
The goal here is to get a common agreement at a high level of who your customers are, the value you create for them and how you create that value in order to generate revenue
In some cases there may be disagreement within the team as to the shape of the business model. In these case we recommend having a full day or a 2 day workshop to allow adequate time to cover them.
In Session 2 we do a SWOT analysis that identifies the main pressures on your business and the reasons the business model may need to change.
This session is quite structured as we use a pool of 60 questions to address the 9 key components of the business model. These are contained in an accompanying workbook and in a typical workshop we will focus on 5 or 10 of them
In Session 3 we look at what we have learned in Session 1 and Session 2 and outline where we think the business model should change to counter environmental threats or take advantage of new opportunities.
This session is typically less structured and encourages participants to brainstorm alternative models, all of which are captured for later review and discussion
The Business Model Canvas
The Business Model Canvas is a simple tool that allows you to describe your business model and think through how it works in a consistent and systematic way.
By using 9 building blocks:
- Customers
- Value Proposition
- Customer Relationships
- Channels
- Revenue Streams
- Key Activities
- Key Resources
- Key Partners, and
- Costs
almost any business can be described simply and elegantly.
The canvas also allows us to easily describe how different parts of the business work together to deliver powerful synergies, core competencies and competitive advantage
Sample Business Model Review
Outputs
Session 1
Business Model Canvas
Session 2
SWOT Analysis
Session 3
Multiple Alternative Models
Who is it for?
- CEO & Senior Management Team
- Startups
- Investment committees
- Strategy teams
What are the Benefits?
- Visualize your existing business model
- See how threats and changes affect your business model
- Generate alternative business models
- Test them to see if they are a fit for your strategic direction
Combined these let you test and analyse strategic choices, make better decisions and move faster.
Why Do You Need it?
- The market is radically changing
- Major threats to the existing business model
- Existing strategy is stagnant
- Investing in a new market or sector
- Considering major changes to the business model
- Looking for insights into competitors strategy
Your Facilitator – Denis Oakley
Denis Oakley is a strategy consultant who focuses on helping tech companies develop powerful business models.
Denis has a Philosophy BA from the University of Bristol and an MBA from Warwick Business School.
After a career with engineering consultancy Mott MacDonald Denis came to Malaysia in 2007 with an oil and gas startup.
Denis helped me explore my current business strategy and opened my eyes to a great potential path to dramatically grow my business. Insightful and honest, he provided great perspective that’s sure enhance my business success.
Michael O’Connell – CodeSprouts
Denis has the unique ability to quickly give you not only a succinct strategy but the right one. He’s not only passionate about helping start-ups he is generous in giving both his time and knowledge. Would highly recommend to anyone needing strategy advice and actionable ideas that work.
Ronan Leonard – Eccountability
Denis’ someone that can be depended on to step up and deliver an idea, a complete solution or just some kind words of encouragement that can really work for you.
David Spence – Live More Events
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