Andre W Andre W Diederichs Wildlife Lessons for Entrepreneurs
Andre W Andre W Diederichs Animals creating scarcity in era of plenty Globalisation creates a surplus economy: China Shrinking marketplace - Mala Mala – drought Less waterholes/food – table manners out Large prey move away – changing food chain Cheetah = specialist – small prey Lions move in diversify : large to small prey One needs to adapt in a shrinking marketplace!
Andre W Andre W Diederichs Animals creating scarcity in era of plenty NB: Create scarcity in an era of plenty! Leopard catching prey – climbing in tree Entrepreneur must also differentiate offering Hyena (coward) – change character – challenge leopard Leopard comfort zones – not high enough in tree
Andre W Andre W Diederichs Animals creating scarcity in era of plenty Lesson for entrepreneurs: Do not become complacent with scarcity Competition can come from outside your industry e.g retail stores in financial services And then came the rain…. back to normal BUT Entrepreneurs must not forget lessons of hard times – but plan for such times!
Andre W Andre W Diederichs Dolphin Thinking during Profound Change Lynch & Kordis comparison – dealing with uncertainty Challenge is to cope with exponential change Alvin Toffler – 50 000 years example Before agricultural revolution – shape glacially Changes in world of work Agri – 5000 years Industrial – 300 years I&C - > 40 years New trend – productivity- Biotech, Ar Int, Robotics
Andre W Andre W Diederichs Dolphin Thinking during Profound Change Dolphin has a inquisitive nature, exploring new waters Entrepreneur anticipates & embraces change- key to unlock potential new opportunities Entrepreneurs Learn and Experiment constantly You cant use yesterdays tools to do business today and still expect to be in business tomorrow Baldwin
Andre W Andre W Diederichs Dolphin Thinking during Profound Change Typical Carp: Unaware of change Ignorant that existing wave is declining or Ignore that new wave is beginning Refusal to acknowledge that things can change
Andre W Andre W Diederichs Dolphin Thinking during Profound Change Typical Shark: Aware of new waves but meet it with resistance Prefer to remain in familiar waters – cannot fail If changes are to be made – make sure no harm will come to them Spread messages like its just a fad, stick to the basics
Andre W Andre W Diederichs Dolphin Thinking during Profound Change Typical Dolphin: Always thinking ahead and expecting change Entrepreneurs avoid comfort zones No sooner out of existing the wave already discovered new wave Entrepreneurs constantly seek new opportunities
Andre W Andre W Diederichs Dolphin Thinking during Profound Change Typical Dolphin: Intuitively thinking of change – not waiting for it Entrepreneurs want change and create change Sensitive to fundamental shifts Entrepreneurs inquisitive nature smell change Begin disengagement & exploring new waves Entrepreneurs avoid sentiments clouding new opportunities
Andre W Andre W Diederichs Dolphin Thinking during Profound Change Typical Dolphin: Dolphin & Entrepreneurs, like a good surfer always looking out for the next big wave NB: timing critical – too fast destroys existing value too slow misses the new wave challenge to ride both and change centre of gravity at the right pace and sequence
Andre W Andre W Diederichs Eagle Minded People Entrepreneur – like eagle – king in his own right Call this creature him, not it, a friend to learn from Luck and destiny is the world excuses for failure Eagle – keen vision no other can match Entrepreneurs also need clear vision - a mental picture of how they see their future
Andre W Andre W Diederichs Eagle Minded People Eagles move faster than any other earthly creature Entrepreneurs also fly high, fearless, breaking through self-created limits & boundaries Always seeking opportunities BUT the Eagle qualifys his prey – viable opportunities Good hunter knows every day is a hunting day but every day is not a shooting day Entrepreneurs focus on sustainably viable opportunities – not short lived ones
Andre W Andre W Diederichs Eagle Minded People Eagles begin their day early – get the most out of it Entrepreneurs not in bed while others make money Eagle generally has > than one nesting territory If the terrain limits him to 1 site, he will defend it Entrepreneur can stick to one opportunity but also needs to diversify if market conditions change – good surfer – quick reactor – big waves
Andre W Andre W Diederichs Wild Dogs give meaning to family values Super killers – most successful hunters – 80% Known for education/training of their young Descended from grey wolf - 120k survived smell prey (opportunity) 2kms away hear prey (opportunity) 16kms away Entrepreneurs developed senses to Smell opportunities – by constantly thinking opportunities
Andre W Andre W Diederichs Wild Dogs give meaning to family values FOB – identify & preparing successor = vital Wild dog devotion to prepare young = NB lessons catch and bring their young life prey FOBs should expose future successors to real life business experiences social skills – social structure in family FOBs teach children their respective roles from a young age
Andre W Andre W Diederichs Wild Dogs give meaning to family values Wild dog natural nurturer – take care of weak/sick Characteristics: speed – adopt fast if need be stamina – endurance – do not give up! patience – pursue most viable opportunities teamwork – know your role and responsibilities Focus on overall objective – but taking care Balance between Family and Profit
Andre W Andre W Diederichs Monkeys redefines the concept of value Globalisation reshapes the marketplace Changing concept of value – lifelong learning Need to stay relevant to survive Monkey speeds to deliver good example Sailing Wen - Taiwan
Andre W Andre W Diederichs Monkeys redefines the concept of value Monkey spots opportunity for food 2 nd to none Excellent colour vision & discern: good/bad Entrepreneur requires good judgment/decisions Monkey uses brain, not senses to find food Entrepreneur needs to think before doing
Andre W Andre W Diederichs Monkeys redefines the concept of value Monkey inquisitive nature- unafraid to experiment Baboons in Kenya diversified their food chain Prerequisite to explore new ideas is willingness to learn - continuously learning, like a child In times of profound change the learners will inherit the earth, while the learned will find themselves Beautifully equipped to deal with a world that no longer exists. Al Rodgers
Andre W Andre W Diederichs Monkeys redefines the concept of value Understand fragmented networks Associate with other animals – common goal Monkey/mongoose – anti predator allies Monkey watch sky, mongoose ground:warning signal Entrepreneur : trusted networks & associations Creating 1 stop service – working together
Andre W Andre W Diederichs Starting your own business SME environment SME environment Do your homework Do your homework Access to market Access to Finance Avoid the Surplus Economy Avoid the Surplus Economy Understand the Concept of Value Understand the Concept of Value Create a USP Create a USP Way of thinking Way of thinking
Andre W Andre W Diederichs CHANGING WORLD of WORK One bite and we were doomed to the world of work
Andre W Andre W Diederichs CHANGING WORLD of WORK World of Work Nomadic Hunter Farmer IR- wage Labour movement I+C Revolution Social Structure Family/Tribes Civilisation/Nation Welfare States Paternalism Sovereign Individual
Andre W Andre W Diederichs World-wide trends W. Europe: > 90% of companies employ fewer than 50 people. Family businesses generate 45% to 65% of the GDP. USA: > 50% of the workforce is employed by businsses with fewer than 50 employees. These businesses generate 40% to 50% of the GDP. Japan: >70% of the workforce is employed by businesses with fewer than 50 employees. 78% of these businesses employ fewer than 20 people. UK: 99% of companies employ fewer than 50 people.
Andre W Andre W Diederichs Employment in SA Total Employment 11,2 m Public Sector 2,9 m Private Sector 8,3 m Source: DTI Survey 2003 SMMEs 75% of employment
Andre W Andre W Diederichs Do Your Homework Formalise your business plan Access to market Understand and test the need Understand the competitive environment Know how to create access to the selected market Access to Finance Understand the economics of the business Do your Financial projections – cash flow Gearing ratios
Andre W Andre W Diederichs SURPLUS ECONOMY Changing Rules of Competition Globalisation=open markets=more choice=empowered individual 1st time in history plenty is a problem - challenge to create scarcity IT increase output + quality = commoditised IR resources e.g. raw material, labour + real estate Commodity price index (on average) shows < of 84% since 1914 1981 = 2700 items added by 1996 = 20 000 Post it Notes (3M) - yellow. Today 18 colours + fragrance Technologies mature=prices drop.Light bulb: $1440 in 1880 33 c in 2000
Andre W Andre W Diederichs Changing Concept of Value Value moved from land to energy to knowledge Industries - not renew = bifurcation point = split + merger Changing concept of value Iron Bucket Plastic Bucket Running Water
Andre W Andre W Diederichs Creating a USP – The Essence Personality Competency : what others see :knowledge, communication skills Character The hidden you: Character:The hidden you :integrity
Andre W Andre W Diederichs How much you deposit or withdraw that determines: Your emotional bank account Building trust = building relationships Deposits kindness + courtesy keeping promises honoring expectations loyalty to the absent making apologies Withdrawals unkindness + discourtesy breaking promises violating expectations disloyalty, duplicity pride, arrogance You cant talk your way out of problems you behaved yourself into
Andre W Andre W Diederichs Character =Relationships Capital! People dont care how much you know until they know how much you care People dont care how much you know until they know how much you care Michael Q Pink Key is a balance between competency and character No relationship can be owned without trust!
Andre W Andre W Diederichs Key ingredient of relationships
Andre W Andre W Diederichs The Key Ingredient to success Creating a USP by differentiating yourself through; Above average offering (knowledge,pricing?) Unquestionable character (deliver on promises) Create scarcity in and era of plenty!! In Noahs time it was not difficult to predict rain. Most could do it. BUT the challenge was to build an arc
Andre W Andre W Diederichs A Way of Thinking Do not need: Brilliant Intelligence A lot of Money A great new Invention A rock- solid Marriage Evangelistic talent for motivating staff A flair for Administration BUT: You need a bit of Everything!!
Andre W Andre W Diederichs A Way of Thinking Taiwanese Thinking Rather the head of a chicken than the tail of an ox. African Idioms : Wildlife and Entrepreneurship Wild Dog (hunter and prey) versus Wildebeest (committee member)