ModernMagellans

Starting an InVitro Diagnostic Business - one or many?

Tue, 08 Jul 2008 15:33:28 -0700

A few months ago, I posted a question on LinkedIn. I had a few reasons, one was to test the response rate on questions posted there, another was to see how many of my connections would respond, and lastly to see if any investors in or out of my connections would chime in.
The question:

Is it a good thing for a start-up with one diagnostic product to focus only on market share and selling the company or should it try to develop additional products? In other words, is, "One, done, then do it again" a good strategy?
A good friend has a great test and I think he should try of the one and not distract or waste time on anything else. I used to be an opponent of the "one-trick pony" but that has changed as I see investors wanting a quick exit.
It is not a question of retiring as much as it is a strategy issue. I think that if you do not have the resources, or product concepts, required to build a big company, then why fight to stay alive? Build the best value and do it again. I may be wrong, so I am asking. I do know of at least one example, where the founder has done this 4 or 5 times. In each case, he sells for $10 - 40 million after starting with $1 to 2 million.

I got a range of responses, and even though I have not really changed my mind, I did appreciate the comments and I made 8 to 10 new connections. One suggestion I received was to open the question to a broader audience. I think putting it here on this blog is a good start.

I have heard from a few VCs about their preference and it runs from highly favorable to absolute avoidance of such models. This just proves that you can find an investor for any model, it may just take more time for some cases.

So, what would you do? Build and sell or create a company designed for the long haul?

Networking - it's not just for lunch

Fri, 04 Jul 2008 12:34:31 -0700

I have had the opportunity to work with SoCalBIO, the industry organization for biotechnology, medical device, and biology related companies in Southern California, and I am beginning to wonder why people do not see more value in getting to know one another. In just the 6 weeks I have been at the task of trying to build membership in Orange County, I have found many situations where two or more company executives should be talking to one another and yet they do not even know of each other. I do what I can to bring parties together but I am not the business development person for either.

Here are some examples of fits that should be made. There is a company that is developing some new diagnostics, there is another run by one of the foremost IVD (In Vitro Diagnostic) device creators a live today. They should meet. There is a company that will need to get state enforcement to really make their product succeed. There is a company that has done that for corrosivity testing. They should meet. There is a company that does outsourced testing for pathology labs. There are many companies that would like to have pathology labs using their test. They should all meet.

I have been told repeatedly that I am really helping things to come together. That's nice to hear. I am only one person and I only know so much. It has been great to meet with the executives of the various Companies but that is not enough. Imagine if each of these leaders took it upon themselves to get to know at least 5 others. Then they could do for others what I am trying to do.

We all attend networking meetings in the hopes of increased business. As we mingle, we are hoping to find a deal, a contract, a job, or a new revenue stream. That can only happen if we get to know others and help others get to know us. As we help make connections, connections will fall to us. It may not happen the first time. It will never happen if you do not get out and mingle.

One frequent complaint I hear is that there are too many "service providers" at these meetings. It seems that as soon as you enter a room that accountants, lawyers, and consultants who want to help you for a fee beset you. The best thing to learn to do is to disengage quickly. It is not good for them to hang on you either but they feel like they may have a shot if you continue to talk to them. I am not suggesting that you treat them rudely, but rather help them to see that they are wasting their time talking to you. Be a little selfless in all that you do and I believe it will pay off in greater rewards in the end.

Anyone have some good networking stories or advice?

I have not Quit - I have just been busy helping others more directly

Tue, 10 Jun 2008 00:01:55 -0700

When I am working on business plans (not responsible for content or layout) I worry that I may accidentally disclose important information or insult one of my clients. I was also waiting for some feedback from my last post. Since none arrived I began to wonder if anyone was reading.

I recently viewed my visit reports and they are not fantastic, but people are still visiting. I will try to write at least once a week, if for no other reason that to reassure you that I have not given up.

If you are a member of LinkedIN click the link below to see my public profile, you probably have noticed the increases in my current occupations list. My recent involvement with SoCalBIO has been particularly rewarding. It will be the source of some very cryptic stories about some really fantastic things happening in the Biomed world of Orange County California.

Sincerely,
Roger Anderson

Overtaken, Passed, Left Behind - Are You?

Mon, 31 Mar 2008 13:17:54 -0700

I don't watch basketball very much. To me, it seems that all you need to see are the last few minutes to see the most important part of the game. The last few minutes last about 30 minutes anyway. But each year, as March Madness around the NCAA tournament grows more and more popular, I am reminded of the fact that "once upon a time" the NIT (National Invitation Tournament) was at one time the big dance. If you would like to know more about the origins of the NIT and NCAA tournaments you can always visit Wikipedia. This makes me think about how many once popular products, companies, TV shows, events, and people have faded over time. At times, these fades seem to happen very quickly and for no obvious reason.

Why do these fades happen?

Indifference to Competition
Over-confidence (Arrogance)
Aggressive Advertising (Annoyance)
Failure to Update
Next Big Thing Arrives

There are of course, many things that can be learned from these fades:

Nothing lasts forever
Any leader can be overtaken
Success does not require originality
Bigger is not always better
Familiarity breeds contempt

Some fades can be highly instructional:

Motorola was once the mobile phone leader, now it is clearly Apple
Arsenio Hall was at one time a very popular late night talk show
Baseball was "America's Pastime" but now more people watch football
IBM was passed in the PC market by HP, then HP by Dell, now…?

(On a related note: the 10 year old Dell has died. RIP Roadwarrior!)

Some things that appear to be fading:

Is it to early to consider Brittany Spears a fade?
Has Christianity faded? Is it because Islam continues to grow?

Some things never seem to fade:

Levi's 501 jeans
Chocolate
Flowers as a symbol of romance
War
Greed

Rather than have a very long blog post, I will cover these fades and questions over the next few posts. That way we can explore the reasons and discuss them. If you have an illustrative fade you would like to discuss, please post a comment or send me an email.

(I was going to save this post for April 1 but then I thought people may mistake it for a hoax. It has been my expereince that posts made at night or posted early in the morning attract more readers.)

Why Are You An Exception?

Tue, 18 Mar 2008 00:01:17 -0700

I love working on business plans with aspiring and serial entrepreneurs. The enthusiasm and creativity they have is invigorating. I enjoy my role as the one who helps point out inconsistencies or minor mistakes. I like to help them make the plan better. There are always differences in style but I think that is useful. If all BPs looked the same, they would get very boring very quickly.

I don't always enjoy the role of pointing out big errors or mistakes. At times, the error is just a miscalculation or missing explanation. Those are easy. It is the times where reason has left the discussion that I find most difficult. When a person does not understand that a population of 200,000 people will not all run to a store the day it opens, or that everyone will not buy a product simply because it is obvious to the inventor that the product is superior.

How do you tell someone their baby is ugly?

Why do some people think that they will be the exception to the rules? I hope they are the exception, but it seems better to plan for things to proceed in a normal or worse than normal manner. I try using a financial argument. Trying to get them to see the math does not work. I try to reason with them - you cannot work 100 hours a week for 5 year and expect everyone else to as well. Why would someone loan you $3 million at 0% interest just because they will be able to get their money back?

Just once, I would like for someone to provide me with an acceptable reason as to why they, when no one else is, will they be the exception to the rules or norm?

Leadership - What Do We Want?

Wed, 20 Feb 2008 11:14:33 -0700

Every company goes through periods of high excitement and high anxiety. In most cases the difference in the way a company emerges from these moments has to do with the leader. A person who can pull the team together can capitalize on the excitement or anxiety. A person who falls apart, or displays weakness will lose control.

My favorite definition of a leader was something Marcus Buckingham wrote in, "The One Thing You Need to Know":
"Great leaders rally people to a better future."

He wrapped up a section on leadership with this paragraph, that I think captures the essence of how the followers feel.

So, as you strive to lead us toward a better future, remember that we need clarity, and that actions, both the symbolic and the systematic, can be wonderfully, comfortingly clear. If you can sort through all the actions available to you and identify the few that can grab our attention or alter our routines, then our confidence in you and your better future will grow strong.

With all of the various political, economic, and social leader wannabes we have shouting at us today, it is amazing how few of them get this very simple point. We who are to follow, want to follow someone who will actually lead with authority, clarity, and vision. Two out of three is not enough.

What do you look for in a leader?

Problem Solving - My Process

Tue, 12 Feb 2008 15:39:16 -0700

Recently I was asked to explain my problem solving methodology. In a single sentence, it is this:
Find the optimal, perfect world solution, and see how close you can get to that.

The full answer is a bit lengthy but I'll summarize it here. The diagram, which will be part of Maps for Modern Magellans Volume 2, is what I call the Project Curves.

Elocution Phase (Talking)

Determine the "real" issue. Too often, we treat the symptom not the disease.
Understand the magnitude of the issue. What is the cost, brand impact, scope, extent, and frequency of the problem. This helps set the priority the situation receives and the resources that need to be allocated.
Was an existing procedure, instruction, or regulation not followed? Why reinvent a solution that already exists? The real problem could just be a case of someone not following instructions.
Is there a flaw in an existing procedure, instruction, or regulation? The fix could be very simple and again, require few resources.
Assuming it is a new issue or an issue that has not been solved previously the following steps are used:

a. Brainstorming - be sure to write down possible solutions before evaluating them in much detail. It is very important that the first answer be written down so that the brain allows other solutions to come forward. It is a common practice to give the first thing that comes to mind greater weight than any subsequent thoughts (See Blink by Malcolm Gladwell)

b. Place the solutions along a range:

c. Approach perfection as much as possible within the limits of resources

Gap - between talking and doing

After all of the talking has finished, make a decision based on reason and experience.

Execution Phase

Execute with boldness
Review results and do better next time

As I said, this is an outline of my process. Many times, a problem does not require much effort. On other occasions, the amount of effort is significant and worth the time spent.

If It Ain't Broke - Maintain It

Mon, 11 Feb 2008 11:23:05 -0700

There is a tendency to put something together and then walk away. The hope is that the installation will go well and that the something will just work as it was intended for years and years.

It is more fun to work on new things than to maintain old things. The grass is always greener when compared to the dirt that was there before than it is when compared to the grass that grew there last year. The rate of success of a new product is often in high double digits. The change in sales for an old product is often in single digits or low double digits. People seem to enjoy talking about new products. Rarely is there much buzz about old reliable products.

Here are some examples of what I mean:

Leaders write a directive for a new program, and then no follow-up (Leadership)
Buying a car and then never going to have it tuned up (Personal Growth)
Building a bridge and then not servicing it properly (Politics)
Working to capture a market and then not launching well (Branding)
Developing a new product, then not improving on it (Product Development)

One could argue on that last point, since the item was sold for 6 years and then the guys who wrote the OS ended up writing the OS for the iPOD. There may be better examples but the point is still made.

As one conquers more territory, there is more territory to maintain. The ancient empire builders learned this lesson. You cannot simply overrun a country and then move on if you hope to keep it. The downside is that the troops available for the next invasion are reduced with each capture. Empire builders knew this and would build new strength before moving on. They would install local leaders that were loyal or trustable and work to recruit new forces form the captured lands. As you consider the company budget, consider how much easier it is to keep the market share you have, rather than fight to get it back.

Politicians love to spend money on new projects because such efforts make headlines. They get no praise for money spent maintaining a bridge. If we learned anything from the bridge collapse in Minnesota it is this; we cannot ignore the present need to keep what we have. If we fail to spend the money where we already have investment, then we will fall victim to relentless decay.

As I work on business plans, I am constantly surprised by the lack of planning for anything other than growth. In the first year, this is understandable but after that, the company should have some base that it serves. Any company that has to rely on a constant stream of new customers will always fail. Repeat purchasing is a huge barrier to entry only when customers want to come back.

In the average company, should more money be spent on quality control or R&D?

Last Minute Plan Changes and Half-Hearted Execution - Hindsight is 20/20

Wed, 06 Feb 2008 12:58:05 -0700

Last Minute Changes:
There are still a few things to finish up after Super Tuesday but it looks like the last minute changes made by Senator McCain and Governor Romney were not the things they should have done. Given the close race in the southern states Governor Romney might, and we will probably never know for certain, have been better served by campaigning in Missouri and Georgia. Senator McCain should not have wasted time in Massachusetts. McCain should have gone to Georgia where he finished even closer to Mike Huckabee. As it stands, neither of McCain's opponents are officially out, but he could have had a more decisive day.

Weak Execution:
Perhaps the best example of not following through on a plan is that of Rudy Giuliani. His win in Florida and win big on Super Tuesday may have actually worked had he invested the time and effort to build momentum going into Florida. He did not need to win Florida. A decent showing would have meant that today, February 6, 2008 he might have had as many delegates as anyone else in the Republican race. Anyone who has ever launched a new toy knows that you cannot bring it out in November and hope to have big Christmas sales. You have to build awareness and a sense of desire for the product. The launch curve always starts at zero. Apple has had some stunning successes with new products but they have always built buzz for them before they were released.

Attention Grabbing:
What can we learn from the Democrats? It ain't over until it's over. I can't say who will be the victor but neither candidate looks to be on the ropes. The closeness of the race actually helps both get more media attention. This attention may cost the Republicans as their race becomes less interesting. I think I have said this before, "Pick a fight in public and both sides may profit." Consider Donald Trump and Rosie O'Donnell. Both had shows that were fading in the ratings. A good fight brought them both a lot of free media. Both of their shows improved dramatically in the ratings for a time.

What can you do to draw attention to your business that would get you free media?
Will that attention be a good thing?

When to Change - Last Minute Decisions

Tue, 05 Feb 2008 11:35:25 -0700

As the political campaign hit Super Tuesday, it was interesting to see how the two frontrunners on the Republican side worked the day. After months of planning and organizing both candidates changed plans at the last minute. Gov. Romney headed back to California after it was reported that he had a sudden surge in the polls here. Senator McCain changed his plans when he heard the Romney was coming back to California.

What these events brought to my mind is the way companies make plans and then, as if all of that planning was useless, they do something else. It is not for me to say if these were good decisions or not. It is hard to imagine how a last minute visit would make any difference but it might. If nothing, the trips got more news coverage for one or the other.

How often do you spend a great deal of time pondering and planning only to go with your gut or hold off at the last minute? If you look at military campaigns failures often result from weak commitment. If you make a decision, shouldn't your reversal of that decision receive as much consideration? Failure to act can be bad, but acting in a half committed manner is often the worst course of action

Last minute information can cause or require a change of plan, but before you make that change, you really should consider all of the time and effort that went into the original plan. If the new information was actually considered before, then why does it have more weight now?

For my second volume, I have several chapters on decision-making. One of the key things to note is that we all have difficulty weighing information accurately. What is in the front of our minds often carries more weight than what is not. This is why in a taste test or beauty contest it is best to go first. People judge the first against an expectation or nothing. People judge the second and remaining entrants against the first.

What do you do to keep last minute fear or data from taking precedence over deliberated plans?

Customer Punishment - Should You Treat Customers As Caged Animals?

Mon, 04 Feb 2008 13:00:25 -0700

On Saturday we did something we have not done for a long time, we watched a movie on broadcast television. For various reasons we had never rented or bought Steven Spielberg's "War of the Worlds." When I saw that it was going to be on ABC Saturday night we decided to watch it. We will probably never make that mistake again.

The show was to start at 8 PM. At 8 PM ABC showed 10 minutes of previews of upcoming television programs. Of those 10 minutes 5 or more were dedicated to the upcoming Sean Combs (AKA P. Diddy) show. I have no interest in seeing anything he is involved in. Call me old fashioned, but I try not to contribute to the ability of drug users to afford to refill their supplies.

During the broadcast, ABC would show 8 minutes of the movie and 7 minutes of commercials in an alternating fashion. Since this went on for 3 hours I think we were sufficiently convinced that we will not watch LOST, or anything else on ABC for awhile. We were so thoroughly bothered by the barrage of advertising, that we went beyond trying to ignore them to actively mocking them as we waited for the show to return.

The point of this story is not to enter into a discussion about the cost of free television. I understand the trade-off. What I want to point out is that similar things happen in other businesses and we may not know we are doing it.

10 Examples of punishing customers:
1.   Hold Messages that "pump the company" while customers wait for assistance
2.   Webpages with 30% content and 70% advertising
3.   Products that are contaminated with lead, poisons, or other harmful materials
4.   Faulty instructions for the operation of a purchased product
5.   Software that modifies the purchaser's computer in an undisclosed way
6.   Advertising that is inappropriate for "general audiences"
7.   Long Checkout lines - worse when they are lined with last-minute purchase temptations
8.   Rebates
9.   Gift Cards that decrease in value if not used
10.   Long wait times for assistance online, on the phone or in person

I could go on but I would like to solicit your thoughts. In what ways do you feel punished by companies you would like to purchase from, or have purchased from?

What can you or should you do about it?

The Ways Do Not Justify the Means - Societe Generale

Wed, 30 Jan 2008 12:29:14 -0700

It's a great thing to have employees that go the extra mile to make the company successful. According to reports, (WSJ) Jérôme Kerviel was just trying to help Societe Generale.

On his motives: "What motivated me to do these trades was . . . above all making the bank gain money. This was my foremost motivation, and I never meant to become rich."

Since his motives were sincere, should we then just forget about this and move on?

I think that this kind of behavior points to a problem that is not often addressed. People cheat because they feel that the end result is more important. Look at the political races. Clinton and McCain have both lied repeatedly in the 2008 campaign and yet they are the front-runners. When will society begin to hold a higher standard?

If the end is really that important, consider John Huntsman. His personal worth is close to $10 billion. He wrote a very nice little book based on his business experience called, "Winners Never Cheat" It takes less than an hour to read and is worth every minute. It even has a foreword by Neil Cavuto of Fox News and Fox Business Channel.

Time Off to Grieve - The Right Thing

Tue, 29 Jan 2008 12:58:02 -0700

A story published by Reuters and viewable on Yahoo News was recently brought to my attention that a company in Japan gives time off for heartache.-

Tokyo-based Hime & Company, which also gives staff paid time off to hit the shops during sales season, says heartache leave allows staff to cry themselves out and return to work refreshed. "Not everyone needs to take maternity leave but with heartbreak, everyone needs time off, just like when you get sick," CEO Miki Hiradate, whose company of six women markets cosmetics and other goods targeted for women, told Reuters by telephone.

It reminded me of a time when I was in Tokyo on business and my Grandfather died. He and I were close. I was in Japan for 5 days to work with CosmoBio and on the morning of the 5th day I received an email letting me know that he had died. It was a terrible blow to me and people around me could see that I had received bad news. When I told the person working with me she expressed her sympathy and then immediately walked away. I thought that was strange but I had more important things on my mind.

One by one, the top management of the company, from the CEO on down, stopped by the room where I was working to express their sympathy. I was very touched by their visits and kind words. Many did not speak English well and my Japanese is not great but I knew what they intended. This went on for about 30 minutes.

I was scheduled to fly home that afternoon and I wondered how I would get any work done between my feelings and the many sympathetic visits I was receiving. When the operating manager came in, I expressed my gratitude for the visits and my concern about what still needed to be done before I flew home. He told me that there was nothing more important right now than for me to leave the office and spend some time in a quiet place.

If you have casually visited Tokyo you might think, as I did, that there are no quiet places in Tokyo. I was wrong. I was directed to a park, I do not remember its name, but it is right near the Tokyo Dome. It was built centuries ago in memory of a ruler's fiancée that had passed away. It was so quiet and beautiful. It was just what I needed at that moment.

I may have forgotten the name of the park but I have never forgotten the lesson I learned that day. I will never forget the friends who reminded me about what is most important. Their attitude and expressions have always left me with a great feeling for Japan and for the manner in which they conduct themselves.

This post could also categorized under WAYS - What Are You Saying. When you provide time for people to deal with the realities of life you are saying that you care. If you treat your friends, staff, and associates in this same manner it will not only show that you have compassion, but it will also build a bond between you and them. In Lewis Green's book, Lead With Your Heart, he talks a lot about putting people first. I believe that the management and staff of CosmoBio showed me that putting people first does help build a better business and a better world. It is often easy to put off grieving because we have so much to do. In the end I think we miss a part of being human that is very important. I hope as you work with people every day that you remember that we are all people and we do need time to feel our feelings.

I Have An Addiction - Politics

Mon, 28 Jan 2008 12:13:27 -0700

All last week I could not tear myself away from the back and forth on television or from visiting political blogs long enough to write a single entry. What drugs are to Amy, politics seems to be for me. Some reports even predict Winehouse will die by March of this year! My dealers go by the names of Rasmussen, Fox, Blitzer, and Matthews. I am hooked on RCP, DNC, and RNC. Perhaps my friends need to perform an intervention. Even writing this blog entry has given me an excuse to peruse the materials put forth by the pushers.

I find it fascinating to watch the fluidity of momentum. One day it is Hillary, the next Obama, but don't count Edwards out. On the republican side, Huckabee is unstoppable one week and in fourth place just a few weeks later. Today it is Romney, tomorrow it will be McCain, but don't count Rudy out. With all of this, and cable TV to feed my addiction I have been trapped in a never-ending spiral of political whirlwinds. (Thank goodness the Florida Primary is tomorrow - I'm planning on entering rehab after "Super Duper Tuesday" I promise. I will call Dr. Drew right after the results are final.)

I try to rationalize my addiction by telling myself that there are lessons to be learned here about leadership. Yet, I find it hard to see where a businessperson would want to have to campaign for their job. I suppose in a way we do but it is usually subtle. We do have to convince others to follow us. In many cases people can be forced to follow a leader but that is often less effective and counterproductive.

If you try to look at the marketing sales aspect of campaigning it seems to me to be even more difficult to justify the time spent analyzing the races. I can't imagine how a Marketing manager could deal with the sudden and often dramatic changes in popularity. Momentum is a great thing but in the retail world it often takes longer to build because there are so few "election" events. One might see Christmas as a primary where toys battle to be the "must have" toy of the season. Or perhaps the meetings like CES, Leipzig Games Convention, or Detroit Auto Show provide a brief opportunity for free publicity but they do not come close to the non-stop attention the US Presidential race receives.

Often we see many business leaders complaining about the short-term vision of Wall Street. Compared to the political field, that changes daily, quarterly reports are long-term statements! How would you handle the constant barrage of conflicting statements and claims about your product or business?

10 Questions for Lewis Green author of: "Lead With Your Heart"

Fri, 18 Jan 2008 00:01:52 -0700

This post is a follow-up to the post yesterday about "Lead With Your Heart" by Lewis Green. Lewis was kind enough to allow me to ask him 10 questions that I had while reading the book.

1.   On page 7, You say the number one characteristic of a "Lead with Your Heart" business model is "People come before profits in every instance." A positive culture is important to customers and employees. How does it help a negative cash flow? If you are not making money you cannot pay salaries?

A: When people come before profits, we see that margins and in the long-term revenues, exceed those businesses whose focus is first on money. I believe in making money but I think a model based on profits leads to failed strategies, and offer several examples of how putting people first leads to business success.

2.   What about people who abuse your kindness, or take advantage of flexible hours?

A: The business model I proposed is not a warm and fuzzy paradigm. When people do not fit the culture, which includes passion and productivity, we ask them to leave.

3.   On pages 14-16, you contrast the Happiness and the Bottom-line business models. Can you cite some examples of each, with case studies or stock profiles?

A: A stock profile is a false indicator or profits, as it is based on top line revenues and is a short-term measure. A better indicator is margins. And companies such as Starbucks and 3M, which lead with the heart, represent just two case studies of success. Like any model, there will be ups and downs. But leading with your heart is a long-term strategy that results in long-term success and a world that is a better place to live and work.

4.   I don't remember what page you asked the question on but I wanted to know when you first thought of it or where you heard it. "If your business went away tomorrow would any one care?"

A: It is part of the values process and a very Jesuit way to think. I can't remember where or when that specific question appeared, but the core of the question is based on building a business on a foundation of values. Those values-driven businesses are the one thing that great businesses had in common in the Collins and Porras book, Built to Last. If the answer to the question is "no," most people wouldn't care or even notice, your business is not maximizing its opportunities and may go away tomorrow.

5.   On page 40, you state that a business does not sell products it sells relationships. You suggest that a business needs to do everything it can to please its customers. There will always be customers that cannot be satisfied. What does your heart-based model suggest for those customers?

A: Actually, I reject the word satisfied, which to me is synonymous with mediocre. I call for all businesses to create great experiences and to always meet or exceed people's wants and needs. We can only do our best. If a customer remains unsatisfied after we have done everything we can to make them happy, there is no more we can do.

6.   On page 98 you say, "Leading with your heart in business is not leading with a bleeding heart." I thought this was the most important point after the title. Why did you wait so long to say this?

A: I first make that point on page 6, when I write: "My argument does not pit happiness against financial responsibility and health margins. Instead, I argue for strong fiscal responsibility and budgets that create better-than-hoped-for margins." And then again on Page 9, I write: "The pursuit of happiness does not rest on some shaky psychological definition of being happy." Throughout the book I try to reference and provide real examples that show that leading with your heart in business is not about being warm and fuzzy. It is about a business model that, however, always puts people first, and sometimes that means laying someone off who doesn't fit or increasing prices. (Looks like I did not catch it earlier - my mistake.)

7.   On page 125, in the Starbucks story about employee contributions you sort of hint that the "Frappuccino" idea was borrowed or stolen from another company. How is that inline with your call for more honesty in business?

A: It was not stolen. However, all ideas come from somewhere outside ourselves. In this instance, it was a blended drink sold at another store that led to Frappuccino. The recipe and ingredients are completely original to and blended by Starbucks.

8.   On page 185, you quoted the Gallup survey about employee attitudes. You believe the attitudes are partly a result of the reason the business owner or leader founded the company - for money or power. Given that the survey was conducted among all kinds of companies, not just "unhappy" places, were you surprised that 19% of employees actively sabotage their employer?

A: No, not at all. Humans are emotional beings and when they are unhappy and feel disrespected or perceive they are not begin dignified, some will lash out. And that lashing out violates the principles behind leading with your heart.

9.   On page 219, you make a blanket statement, "Business has been about making as much money as possible for the few at the expense of the many." There are many companies that meet your positive, feel good, compassionate approach, isn't your statement a bit too broad?

A: It is a broad generalization and in a second writing I would modify that statement by saying instead that "the old business model focuses on making as much…." There are more than a few businesses that lead with your heart, which by the way is less about compassion that about doing the right thing.

10.   How do you respond to the conclusion of the recent Harvard Business Review article (Jan 2008, pg 19, by Margolis and Elfenbein) "Do Well by Doing Good? Don't Count on It" where they conclude from 35 years of research that a "societal good" approach to investments, activities, or policies does not result in greater profitability? (They also said it did not hurt the bottom line either if it was done prudently.)

A: I don't disagree. They are basing their research on averages and execution is always the key factors. And I don't claim that doing good will result in greater profitability if we simply look at efforts to do good. But I do believe that businesses that do good using good business practices will increase sales and revenues overall. And as the research says, doing good doesn't hurt anything. And it does help.

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I do believe that it is as hard to run a company fairly and nicely as it is to run one in a mean and onerous manner. Once again I would like to encourage you to consider your choices when you act. Acting from a core belief that doing good matters is a key not only to success but to happiness. In the end, what we all want is to be happy with where we are and what we do. I think that Lewis has given a good blue print for a business that creates that kind of happy person, be they an employer or employee.

If you have an opinion on this I am certain that Lewis and I would be happy to hear what you have to say.