Hartford Business Journal

www.HartfordBusiness.com July 4, 2016 • Hartford Business Journal 21 BIZ BOOKS How startups can dominate a market "P lay Bigger — How Pirates, Dreamers and Innovators Cre- ate and Dominate Markets" by Al Ramadan, Dave Peterson, Christo- pher Lochhead and Kevin Maney (Harper Business, $28.99). When you start a business, the odds of success are slim. They become slimmer if your business ascribes to a "build it and they will come" or a "me-too" plan. Nor should disrup- tion be in the plan. The goal should be: Change the way the game is played by giving consumers a different way to solve a problem. Successful startups begin changing the game by com- municating the problem they solve. When people begin focusing on the problem, they also see the company's solu- tion. Uber stated a problem — "Taxi service sucks." It provid- ed a consumer-to-transport app to fix the problem. In doing so, it established a new market category. It built out the cat- egory by broadening the problem/solution to "getting around without a car." Amazon started selling books; it expanded into full- blown retailing. Competitors followed; none really challenged Uber's market-leader position. Why? Almost as soon as the problem — the category — is well understood, cus- tomers flock to the market leader. "The perceived best takes most of the market share; second best manages to hold on to enough to keep going; and the rest get pretty much nothing." How do entrepreneurs cre- ate a new category? Answer "Dave's Three Questions" (Dave as in Dave Peterson one of the book's authors). 1. "Can you explain to me like a five-year-old what prob- lem you're trying to solve?" 2. "If your company solves this problem perfectly, what category are you in?" 3. "If you win 85 percent of that category, what's the size of your category potential?" The answers require insight that goes beyond the "why" of the product. They delve into "where" it will fit in the marketplace. Product, message and innovation mean little in a crowded, "loud" marketplace. Key takeaway: To be heard, carve out a new space. "Category is the new strategy." • • • "Why Motivating People Doesn't Work … and What Does" by Susan Fowler (Berrett-Koehler Publishers, $24.95). Despite management's numerous tac- tics and efforts to motivate employees, surveys show disengagement as high as 70 percent. Why? Management keeps push- ing the same buttons (i.e. incentives, the carrot/stick approach) and expects dif- ferent results. Fowler asserts that these traditional buttons are "motivational junk food" because once the incentive is given or the stick is avoided, employees lapse into their old habits. Her research shows that the key to engag- ing employees involves satisfying their psy- chological needs. "Human beings have an innate tendency and desire to thrive." No one wants to come to work and be bored and disinterested. Management can tap their thrive psyche by focusing on three core psy- chological needs: Autonomy — It shapes actions and attitude. When we're told what to do and how to do it, we're no longer in control of our actions. When we feel like we don't have choices, moti- vation wanes. Regardless of workplace or personal con- text, people want to be heard. Managers need to give them a voice (choice?). People desire continuous improvement; if they continually improve, so will the organization. Relatedness — How many times have we heard "It's not personal; it's business?" Business is personal. We need to know that what we do matters. When we know we are contributing, as opposed to just doing a job, our connection to colleagues, the team and the organization increases. Competence — We find "joy in learn- ing, growing and gaining mastery." Focusing on training opportunities that mesh with challenging assignments shows that the company considers learn- ing a long-term priority. When encour- aged to learn, we become more curious, creative and innovative — and less likely to leave. The bottom line: "Moti- vating people does not work because they are already motivated — they are always motivated." What managers must do is align employees' "want to thrive" self-interest with their jobs and organizational goals. n Jim Pawlak is a nationally syndicated book reviewer. Jim Pawlak OTHER VOICES CT's path to a two-track recovery By Scott Bates W e have reached an important point in the history of our state. Connecticut is facing the twin challenges of fiscal shortfalls and a rapidly changing economy that is making it harder for working families to make ends meet. Yet every crisis provides an opportunity to change direction and it appears some Con - necticut policymakers are looking past the crisis of the moment to plan meaningfully for the future. The Connecti- cut Institute for the 21st Century believes priority-based bud- geting is the best way forward. That means state leaders must decide policy priori- ties first, followed by a discussion of how the programs should be funded. Ideally, Connecticut would ultimately match its public spending to levels that fit within existing revenues. This approach to budgeting would also lead to a reassessment of the state's tax structure. The work of the Commission on Economic Competitiveness is heading down a similar path in its early work. Its first findings reveal a declining working-age population, a grow- ing or steady population of older residents, a greater demand for social services and a declining tax base to pay for it all. Taken together, the commission's work speaks to the need for policymakers to decide how best state government can partner with the private sector to steer our economy in the right direction. An honest assessment of strengths and weaknesses can help the governor and legislators make thoughtful decisions on policies and programs designed to maxi- mize Connecticut's strengths and correct weaknesses. A highlight of the last session may also be the policy thinking behind an initiative put forward by Sen. John Fonfara (D-Hartford), the co-chair of the Finance, Revenue and Bonding Committee. The goal of the plan is to create 500,000 new jobs and 500,000 new Connecticut residents over the next 25 years. To get there, the legislation promotes entrepreneurship, innovation, private invest- ment and a greater economic engagement with Connecticut colleges and universities. If state government is truly committed to this approach as a partner with the private sector, this legislation could mark a turning point in the effort to create a more modern economy based on business sectors that are expected to grow over the next several decades. It does not set up state government as a referee over the marketplace, but instead asks government to do what it can to create the conditions for growth. The look toward the future is a positive trend for Connecticut. Our state's elected leaders know they face many short-term challenges. The budget is still projected to be out of balance by substantial margins over the next two years. The good news is a growing number of the state's elected leaders are now looking to solve Connecticut's problems on a two-track basis; one short-term and one long-term. Given the nature of the political process through which we govern ourselves, this is probably the best path to take to ensure sound fiscal policy and spark economic growth. n Scott Bates is the executive director of the Con- necticut Institute for 21st Century, a non-par- tisan, data-driven organization advancing public-policy solutions. Scott Bates ▶ ▶ Successful startups begin changing the game by communicating the problem they solve. When people begin focusing on the problem, they also see the company's solution. ▶ ▶ An honest assessment of strengths and weaknesses can help the governor and legislators make thoughtful decisions on policies and programs designed to maximize Connecticut's strengths and correct weaknesses.

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