Reasons to be cheerful … about entrepreneurship

2015 looks like it may well be the year where the “two E’s” collide in a positive manner – where Entrepreneurship meets Economics, so that novel ideas and their owners meet with the capital and other resources to ensure that their enterprise becomes more than a “one hit wonder”. Whilst entrepreneurs are compelled to bring new ideas into existence regardless of the economy, it obviously helps if ideas are launched at a time when people and businesses are in the mood and with the means to buy them.such as Anita Roddick, who started The Body Shop next to a funeral parlour in Brighton in 1976, estimated to be one of the best years in the UK in terms of well being.

Anita Roddick planted her seeds for The Body Shop on fertile ground in 1976

What then makes me suggest that 2015 is going to be a good year for entrepreneurs?

Economics, Economics, Economics

I was speaking with my friend Dr Andrew Sentance on his economic forecast for 2015 recently. A former member of the Bank of England’s Monetary Policy Committee Andrew is currently Senior Economic Adviser for PwC and a member of my band Rock In The City, dedicated to humanising the square mile through rock music. He outlined several reasons to be cheerful:

1. Economic growth is forecast to be 2.5% in 2015. Andrew suggests that only the US will do better among the G7 economies in the coming year.
2. Investment is forecast to grow by over 6% in 2015.
3. Inflation is low and set to fall further. Consumers may gain some much-needed economic relief in terms of prices.
4. Unemployment is expected to fall to 5.5% by the end of 2015.
5. Wages growth is picking up – expected to be 2.4% next year. When combined with low inflation, people can expect the first improvements in living standards since the financial crash.
6. Real household disposable income is forecast to rise by 2.3% in 2015, providing the consumer with some purchasing power for the first time in several years.

The wonderful Stiff Records – an entrepreneurial startup that started in 1976 but ran out of cash eventually …

The one thing we can be sure of is that the future is that it is subject to change. Nonetheless, these predictions do line up to offer hope that we will be gently lifted out of recession for the first time in around 7 years. What then does the improved economic climate offer for the entrepreneur?

Reasons to be cheerful … for Entrepreneurs … 1, 2, 3

1. If your enterprise is operating in what I call one of the “Brain Based Industries” you are likely to find a fertile climate for growth in 2015. These include biotechnology, nanotechnology, 3D printing and computing development, which shows no sign of having reached a plateau in our imagination of what’s possible.
2. The service sector and creative industries are also predicted to show significant growth. If you are an entrepreneur with a creative idea or service, which makes people’s lives better in some way, now is a good time to be thinking of starting your business. My long experience of working with creative people reminds me to also say that you must couch your service in terms of simple to understand consumer focused benefits and not. Some creative minds are prone to think that people will beat a path to your door to seek out what you offer, however difficult you make it for them. That is the exception and not the rule.
3. Finally some traditional industries are also set for growth with good forecasts for the construction industry and consumer goods. We need also to look at ways to innovate in these industries to make sure that our contributions in this area employ sustainable technologies and materials. This is an area where entrepreneurs can play their part.

We must learn to unlearn

It’s been a long haul through the deepest recession for many years and I’m personally hopeful that we will learn from the lessons of economics to create a more sustainable world economy. That’s not simply learning new things, but also unlearning out-dated habits that create boom and bust economies in favour of a more sustainable world. In this context, we finish with a song that Andrew Sentance loves for it’s rather cheeky Ian Dury inspired lyrics about economics and entrepreneurship. I wrote the song as a call to action for a more sustainable world, plus it was a lot of fun to do …

and, of course, one of the inspirations for Andrew’s predictions:

Punk Rock HR – A Manifesto for Better HR Strategy and Practice

I was asked by Steve Browne for a post that summed up my thoughts on how HR can get better.  Steve is Executive Director at La Rosa’s Pizza in the US and is a massive HR and rock music radical.  So here is my post with some background as to why I feel able to comment on such matters for my US cousins.

Having spent many years running the Kent Branch of The Chartered Institute of Personnel and Development (CIPD) in the UK, acting as a board member of their Council, working in HR for a Pharmaceutical Company and teaching Strategic HRM at MBA level, I had an extended period to study HR strategy and practice from the viewpoints of my original careers as a scientist and innovation leader. As a result, I wrote a manifesto for HR transformation in a book called “Punk Rock People Management”.  In case you are wondering if this requires HR pros to pogo whilst doing staff appraisals, relax! The “Punk Rock” aspect of the title simply refers to three underlying principles of the punk rock phenomenon that apply to good HR strategy and practice:

Simplicity – Simplification in punk was about three chords or even less.  Lou Reed once claimed that anything more than three chords is jazz.  Likewise, good HR and great leaders make the complex compellingly simple. If HR is overly complex it’s no surprise if managers reach for their own versions of policies and procedures.

Keep it simple

Brevity – Brevity in punk was exactly what it said on the tin. The Ramones managed to get their message across in just over two minutes and some of Wire’s early recordings coming in at under one minute, compared with the neo classical 20 minute overtures that characterised Prog Rock (Make no mistake, I’m a big Prog Rock fan as well, but we’re not here to discuss musical tastes).  To misquote Albert Einstein good HR keeps things as short as they need to be but no shorter …

Keep it short

Authenticity – At punk’s core was the idea of telling it like it is. Good HR also keeps things real.  In practice the great HR professional speaks in the language of the business they serve rather than hiding behind HR jargon.  Jargon is a natural feature of all professions, but when it excludes rather than engages it has lost its purpose as a kind of ‘shorthand’.

Keep it real

I was speaking with Ron Thomas, CEO of Great Place to Work, in the Gulf just recently. We discussed some other qualities that characterise great HR, amongst them:

Understand the business – Good HR professionals align the HR strategy and tactics with the long-term business imperatives.  It’s what I call the “HR Six Pack”:

The HR Six Pack – not modelled here by Iggy Pop …

Understand the numbers – Business starts with the financials rather than the appraisal process etc. A grip on the numbers gives you the context to make better HR decisions by fact rather than guesswork. HR professionals also need to be data savvy rather than leaving that to the IT or finance professionals.

Understand the context – You’ve got all your HR / Business qualifications right? So why isn’t the CEO wanting to implement the 9 box model, 360 degree appraisals and so on?  Business schools offer an idealized view of how things should be at work, but work rarely works like that. Successful HR professionals understand context and adopt a “best fit” approach, seizing opportunities to make their workplaces great and understanding the nuance of time and timing. This is usually superior than attempting to plug in “best practice” elements without considering the context, rather akin to attempting a kidney transplant without considering the recipient.

For more on subjects such as recruitment, induction, engagement, rewards, appraisal, promotion, innovation, training, conflict, exit and so on pick up a copy of “Punk Rock People Management” or attend one of our Music and Business keynotes or masterclasses.

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Peter Cook leads Human Dynamics, offering better Organisation Development, Training and Coaching. He offers keynotes that blend World Class Leadership Thinking with the wisdom of the street via The Academy of Rock – where Business Meets Music. Author of seven books on Business Leadership, acclaimed by Tom Peters, Professors Charles Handy, Adrian Furnham and Harvey Goldsmith CBE. Connect with us on our Linkedin Company Page and join our group The Music of Business where we discuss parallel lessons from Business and Music.

Contact him via peter@humdyn.co.uk