Review – Losing My Virginity

Losing My Virginity: How I Survived, Had Fun and Made a Fortune Doing Business My Way

by Richard Branson, published 2011

Spoiler alert– this book is choppy and inconsistent in the pacing and entertainment factor of its narrative. You really need to read between the lines a bit to get the most value out of it. That being said, it’s surprisingly literary for a dyslexic former publisher of a student magazine and I found Branson’s repeated reference to his high-altitude balloon voyage trials to be an outstanding metaphor for his life as a businessman and entrepreneur.

You see, in Branson’s ballon journeys, the key factors of any consistency were that: a.) Branson was knowingly and openly taking what he perceived to be a potentially life-threatening risk b.) Branson was almost always underprepared for it, or decided to go ahead with his attempt despite early warnings that something was amiss and c.) nonetheless, he somehow managed to survive one disaster after another, only to try something bigger and bolder the next time around.

And this is quite similar to the way he comported himself as an entrepreneur on so many occasions. Again and again, he’d make a daring foray into a business, market or industry he didn’t quite understand, the company would stumble after an early success leaving them all on the brink of failure and yet, each time they’d double down and somehow win.

In that sense, Branson is a perfect example of survivorship bias. On the other hand, having so many narrow misses that turn into massive accelerators of a person’s fortune start to make you wonder if isn’t mostly luck but rather mostly skill.

As an entrepreneurial profile, “Losing My Virginity” is full of all kinds of great successes and astounding failures. With regards to the failures, something I found of particular interest was the fact that Branson’s company were victims of some of the most common pitfalls of other businesses throughout its early history: taken for a ride by indomitable Japanese owners/partnerships in the 80s, repeated victim of the LBO-boom and the private/public buyout-cycle in the 80s and 90s. When you read these stories in the financial press it always seems to happen to the rubes of the business world, but Branson’s foibles help one to realize even rather sophisticated types can get taken in now and then.

The volatility in Branson’s fortunes do leave one with a major question though, namely, why did Branson’s company ultimately survive?

This isn’t a Harvard Business School case study so I don’t mean to pass this off as a qualified, intelligent answer to that question, but I will attempt a few observations and, in typical HBS fashion, some or all of them may be contradictory of one another and none will be provided with the precise proportional contribution they made to the end result:

  • the group had a cultural commitment to change and dynamism; they were not so much their businesses, but a culture and group of people who did business a particular way, a true brand-over-merchandise, which allowed them to reinvent themselves numerous times
  • the group strategically focused on being the low-cost provider in their industry, usually while simultaneously attempting to pursue the seemingly mutually exclusive goal as being seen as the highest quality offering as well
  • the group focused on serving customers but equally saw treating its employees with concern as an important value
  • the group consciously created a brand that could be applied to diverse businesses (see point #1)
  • the group pursued businesses that seemed “interesting” or sensually appealing to it, which ensured that everyone involved was motivated to do well because they liked the work they had chosen

Another thing I noticed about Branson and the development of his company was the attention he paid to the composition of management and owners and his dedication to weeding out those who were not good fits in a charitable way. Channeling the “best owner” principle, Branson made a conscious effort to buy out early partners whose vision and tastes did not match the current or future vision of the group. In this way, the company maintained top-level focus and concentration on a shared strategic vision at all times, sparing itself the expense and distraction of infighting and wrangling over where to go next and why.

Another aspect of the company’s resilience had to do with its operational structure. Branson built a decentralized company whose debts and obligations were kept separate. In an environment where new ventures were constantly subject to total failure, this arrangement ensured that no one business failure would bring the entire group down.

The final lessons of the Branson bio were most instructive and had to do with the nature and value of forecasting.

The first lesson in forecasting has to do with the forecasts others make of us, or the world around us. For example, Richard Branson had no formal business training, he grew up with learning disabilities (dyslexia) and he was told very early on in his life by teachers and other adult and authority figures in his life that he’d amount to nothing and his juvenile delinquency would land him in prison. Somehow this worthless person contributed a great deal to society, through business and charity, and by most reasonable measures could be considered a success, making this forecast a failure. If one had taken a snapshot of the great Warren Buffett at a particular time in his adolescence, when the young boy was known to often take a “five-finger discount” from local department stores, it might have been easy to come up with a similar forecast about him.

I’m not sure how to succinctly sum up the concept there other than to say, “Things change.” Most forecasts that involve extrapolating the current trend unendingly out into the future will probably fail for this reason.

The second lesson in forecasting has to do with how we might attempt to forecast and plan our own lives. When we have 50, 60, 70 or more years of a person’s life to reflect on, it is easy to employ the hindsight bias and see how all the facts of a person’s life were connected and led them inexorably to the success (or infamy) they ultimately achieved. And certainly there are some people, again using Buffett as an example, who from an early age were driven to become a certain something or someone and so their ability to “predict their future selves” seemed quite strong.

But the reality is that for the great many of us, the well-known and the common alike, we really don’t have much of a clue of who we are and what we’ll ultimately become. The future is uncertain and, after all, that’s the great puzzle of life that we all spend our lives trying to unravel. Richard Branson was no different. He was not born a billionaire, in a financial, intellectual, personal or other sense. He had to learn how to be a businessman and how to create a billion dollar organization from scratch. Most of the time, he didn’t even know he was doing it. In other words, HE DID NOT KNOW AHEAD OF TIME that he would become fabulously wealthy, and while he was hard-working and driven, it doesn’t even appear he purposefully intended to become so.

Maybe we should all take a page from Branson’s book and spend less time trying to figure out what’s going to happen and more time just… happening. We could sit around all day trying to figure life out, or we could follow the Branson philosophy where he says, “As for me, I just pick up the phone and get on with it.”

Review – Death By Meeting

Death by Meeting: A Leadership Fable About Solving The Most Painful Problem In Business

by Patrick Lencioni, published 2004

The Model

Meetings are boring because they lack drama. Leaders must look for legitimate reasons to provoke and uncover relevant, constructive ideological conflict.

Meetings are ineffective because they lack contextual structure. We need to have multiple types of meetings and clearly distinguish between the various purposes, formats and timing of those meetings.

Meetings should start with the injection of drama in the first ten minutes so participants appreciate what is at stake. For example, illustrate the dangers of making a bad decision, highlight a looming competitive threat or appeal to commitment to a higher mission or vision for the organization.

Then, the meeting leader should mine for conflict whenever disagreement is present. It is better to hash the issue out and let everyone say what is on their mind then to let resentment and personal politics build. And it will require “real-time permission” from the meeting leader to make it work. Conflict must be affirmed as normal and desirable to increase the likelihood it occurs.

The Four Meeting Types

There are four different meeting types to be used based on content:

  1. The Daily Check-In, aka the “huddle”, a standing meeting no more than 5 mins in length; each participant reports on what they’re working on or need help with that day
  2. The Weekly Tactical, weekly/bi-weekly, 45-90 mins in length; Lightning Round, go around the table and report on 2-3 priorities for the week in 60 secs or less per person; move to Progress Review, including a report of KPIs, 4-6 per person, 5 mins total; Real-Time Agenda, this grows out of the Lighting Round and Progress Review portions, an agenda for discussion should focus on critical issues raised in these first 15 minutes; the overall goal is to resolve issues and reinforce clarity
  3. The Monthly Strategic, every 2-4 weeks, minimum of 2 hours per topic; discuss a few critical issues that affect the business fundamentally; need to occur regularly to serve as a timely “parking lot” for critical issues raised in the Weekly Tactical
  4. The Quarterly Off-Site Review, meets quarterly and offsite to focus on big picture strategic issues; 1-2 days; includes time for a team assessment; personnel review, identifying stars and poor performers; competitive and industry review to spot trends; most important objective is to build team unity

Sneaker Time

“Sneaker Time” is what is created by a lack of effective meetings and structure. Anything that can not be communicated (or is not communicated) in a group meeting means walking around the office for one-on-one visits. Given there are multiple people on the average team, this time burden involved in communicating can quickly zap teams of their vitality and effectiveness. A great organization can not afford sneaker time and therefore it can not afford to not make its meetings great.

Conclusion

This isn’t a super meaty book, but that’s a virtue– it’s short and sweet and to the point. The delivery of the concept via an interesting and relatable narrative story is also an enjoyable touch.