August 10, 2005

News & Opinion: Daily Drucker for August 10th

By: Dylan Schleicher @ 8:24 PM – Filed under: Management & Workplace Culture

The Infant New Venture

Businesses are not paid to reform customers.

Above all, the people who are running a new venture need to spend time outside: in the marketplace, with customers, and with their own sales force, looking and listening. The new venture needs to build in systematic practices to remind itself that a "product" or a "service" is defined by the customer, not by the producer. It needs to work continuously on challenging itself in respect to the utility and value that its products or services contribute to customers. The greatest danger for the new venture is to "know better" than the customer what the product or service is or should be, how it should be bought, and what is should be paid for. Above all, the new venture needs willingness to see the unexpected success as an opportunity rather than as an affront to its expertise. And it needs to accept that elementary axiom of marketing: Businesses are not paid to reform customers. They are paid to satisfy customers. Lack of market focus is typically a disease of the "neonatal" the infant new venture. It is the most serious affliction of the new venture in its early stages-- and one that can permanently stunt even those that survive.

ACTION POINT: See the unexpected success of a new venture as an opportunity not as a problem.

This excerpt is from The Daily Drucker: 365 Days of Insight and Motivation for Getting the Right Things Done

About Dylan Schleicher

Dylan Schleicher has been a part of the 800-CEO-READ claque since 2003. Even though he's stayed on at the company, he has not stayed put. After beginning in shipping & receiving, he joined customer service and accounting before moving into his current, highly elliptical orbit of duties overseeing the ChangeThis and In the Books websites, the company's annual review of books and in-house design. He lives with his wife and two children in the Washington Heights neighborhood on Milwaukee's West Side.