Magic Johnson – WINNING on the Court and in the Boardroom

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Seeing Magic Johnson speak was one of the highlights of my week in Nashville at the SiriusDecisions 2015 Summit a few weeks ago.

He was funny, engaging, and inspiring, and also had some sound business wisdom for the crowd of 3000 or so sales and marketing executives in attendance. Everyone knows Magic Johnson as one of the all-time NBA greats, but his business resume would seem to qualify him also as one of America’s top entrepreneurs.

He’s a true Unicorn, a rare individual who has reached the pinnacle in sport as well as in business. He spoke about how he made the transition, and how he started winning in business.

CAREER HIGHLIGHTS

CEO of Magic Johnson Enterprises, which reportedly has a net worth of $700 million

Part owner of the LA Dodgers, Major League Baseball team

Former minority owner of the LA Lakers, National Basketball Association team

Owner of Magic Theaters

Partner in the $500 million Yucaipa/Magic private equity fund

First franchisee of Starbucks ever, built a chain of 125 stores in urban locations, sold the chain back to Starbucks corporate

Co-owner of the Dayton Dragons (minor league baseball) and the LA Sparks (WNBA)

Founder, Magic Johnson Foundation

MAGIC’S KEYS TO WINNING

  1. Play to win, and work with Winners
  1. Know your customer – an example he cited was his knowledge of the “Urban customer”, and how he replacing scones w sweet potato pie at Starbucks, and adding more flavored drinks to the menu in order to cater to his customers
  1. Over-deliver – “the key to business success and the key to retention”
  1. Work with great partners
  1. Sell at the right time – Johnson sold his stake in Starbucks and the L.A. Lakers NBA team as valuations started to rise.

OTHER INTERESTING FACTS AND THOUGHTS

He does an annual SWOT (strengths, weaknesses, opportunities, and threats) analysis of all of his companies AND himself.

Magic’s All Time starting 5 lineup – Kareem Abdul-Jabbar, Larry Bird, Tim Duncan, Michael Jordan and himself.

His number one, top rival on the court: Larry Bird

Mentors – Magic has a network of 20+ CEOs who mentor him. He built this network after retirement from basketball by obtaining a list of the Lakers’ VIP season ticket holders and cold calling them one by one.

His biggest failure – Magic 32 sporting goods stores, which failed after only one year.

Magic, on the handful of traits which makes him a success in business (he said he brought these skills he learned as an athlete to his business ventures) – desire to WIN, perfectionism, preparation, focus, discipline, professionalism, and his ability to motivate his team and those around him to reach their full potential.

I’ve never met Magic Johnson, nor have I seen him speak at this length, but here are my main impressions of him, garnered from his 50 minute talk:

Burning desire to WIN. He hates to lose – “underperforming is not winning the Championship

Supremely confident – he KNOWS he’s going to win

His “game plan” is simple. He sticks to the basics (customer focus, over-delivering, good teams, good partners, etc.)

Coachable (he spoke extensively about soliciting and absorbing good advice from his network of 20 CEO “coaches”)

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It was quite inspiring and refreshing to hear from an entertaining, motivational speaker who backs up his thoughts with relevant stories and sound business advice. Always a fan of him as a basketball player, I am now a fan of Magic Johnson as an entrepreneur.

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Steve Jobs, Customer Experience Obsessor (CEO)

A few days before Steve Jobs announced that he was stepping down as CEO of Apple, my family and I paid a visit to Apple’s corporate headquarters at One Infinite Loop in Cupertino, CA.  My daughter Caroline, a huge fan of all products Apple, was the driving force behind our pilgrimage to this tech “mecca.”

We were able to walk around the lobby, which had a display case of the company’s 3 Emmy Awards.  Interestingly, these were the ONLY awards showcased in the lobby.  We talked to a few Apple employees and asked them questions about Steve Jobs.  His office is on the 4th floor (top floor) and he is known to walk around a lot and talk to employees.

Like most students of business, I have been mesmerized by Steve’s approach to business, as well as his personal and corporate success.  In many ways, he is the most accomplished business leader in the last century, having almost singlehandedly invented the PC industry and revolutionized 5 other industries:  cell phones, consumer electronics, film, music, and retail, while influencing virtually every other industry.  His roles at Apple: co-founder, marketer, entrepreneur, inventor, CEO, creative genius, designer, architect, etc.

The most important role Steve plays, however, is also the least discussed, and that is his role as Apple’s Customer Experience Obsessor, a different kind of “CEO.”  (OK, I know that the word “obsessor” does not exist according to Merriam-Webster, but you know what I mean!)   Steve’s obsessive focus on customer experience is the prime reason for Apple’s immense success.

Here are 6 Customer Experience Obsessions that are core to Apple (please pardon the pun).

1.  Customers must fall in love at first sight – For Steve, the customer experience begins with the physical beauty and elegance of Apple’s products. Striking, amazing, revolutionary, simple, and most importantly, COOL!  Apple stuff looks great, they sound great, and they FEEL great.  They touch all the senses, and this is how customers get hooked on them.

2.  A child must be able to use it! – With Apple products, more than any other, product and user become one.  User interfaces, when introduced, have all been VASTLY superior to the competition’s far clunkier interfaces. For example, the original Macintosh desktop computer was truly revolutionary.  It had a unique “windows” GUI interface, and users interacted with the computer via a brand new device called a “mouse.”  And how about the original iPod, with its click wheel, the iPhone with its dynamic touch screen, and the iPad – they were so easy that young children could use them.

3. NO user manuals –  Who doesn’t hate user manuals?  All Apple devices come out of the box ready to use and in working condition, with NO setup or configuration required. This has become a hallmark of the Apple brand.  Peripherals are all “plug and play.” There is no need for user manuals because Steve knows that customers don’t want to deal with complexity.  They want their new toys to work right away with no brain damage, so he made sure his industrial designers delivered on this brand promise.

4. Make the buying experience easy, and customers will buy more –  Whether it’s downloading videos and music from iTunes, or buying a laptop from an Apple Store, the experience is easy, friendly, and even fun!  We all know how super easy it is to preview and buy media on iTunes.  And what happens when you go to an Apple store?  They are clean, well organized, and have lots of demos you can try.  Their salespeople are friendly, incredibly knowledgeable, and PASSIONATE.  And when you’re ready to buy, you don’t go to a counter.  Your salesperson uses an iPod touch POS device with credit card scanner, and the process is about the easiest retail experience you’ll ever have.

5. The products MUST BE RELIABLE – People often criticize Apple for having closed or proprietary technologies, and for overly controlling application development partners (iPhone and iPad apps).  While Apple surely makes more money and keeps competitors at bay this way, Steve’s real reason for this is QUALITY CONTROL.  Apple products work BETTER and are less buggy and less susceptible to viruses because of the seamless integration of hardware and software, their tight control over partnerships, and their use of higher quality components and awesome design.  And with reliable products come customer satisfaction and evangelism, which brings us to Steve’s 6th customer experience concept:

6. The Best Customer Service is NO Customer Service – Steve clearly understands this customer service adage.  The theory is that if you do a great job acquiring and delivering for your customer, you won’t have the need for customer service.  Of course, every company has customer service issues, but those that have the fewest issues are the companies who do a great job making their customers happy, and therefore have the highest customer satisfaction.  And Apple’s customer service is very good, especially for a consumer products company.

At the end of the day, satisfied customers are repeat customers, and they evangelize on Apple’s behalf.  Steve knows this and that’s why he focused on the entire customer experience:  the fun and low-friction buying experience, each product’s “WOW” factor, the user interface, product reliability, and good customer service.

Thanks for reading and let me know what you think!  Please also sign up for my Blog on my Home Page!

Winning Advice for Aspiring Entrepreneurs – Part 1

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I have had the good fortune of being invited frequently to speak to groups of students (Undergrads and MBAs), and at various trade and industry forums throughout the USA, and even throughout China and in Dubai.  I always end my talks with a slide entitled Advice for Aspiring Entrepreneurs.

It’s my small way of evangelizing entrepreneurship and giving a nudge to those who are trying to muster the courage to start their own businesses.  The slide contains 9 bullets of advice.  Here are the first 5:

Integrity – What do you have if you don’t have integrity?  Say what you do and do what you say.  Do the right thing.  Integrity is the basis of trust which is the basis of all relationships, business and otherwise.  It can’t be faked. And, at the end of the day, you want to be able to sleep soundly at night.  Everyone wants to work with high integrity people, so always operate with the highest degree of integrity.

Do It Now – So many aspiring entrepreneurs are waiting for the exact “right moment” to start their business.  Well, I’ve got news for you.  The “right moment” is NOW.  Why wait? When you think about it, the worst thing that can happen is you fail, and you go back and get a job.  But the learnings you will have amassed are priceless.  With the economy and markets flat these days, a resourceful entrepreneur with a great idea and execution capability can be very successful.  Competitors and established players are in disarray and “playing defense.”  They are cutting costs, and trying to figure out their next pivot while you can start with a blank slate and make a market.  Go for it!

Great People – You can’t win without having a great team around you.  That goes for business, as well as sports, war, etc.  Surround yourself with the very best talent you can recruit for your crusade.  Great people are worth multiples of what you pay them, so take your time and find excellent associates who know how to deliver and who share your passion and values.

Focus on Your Customer – Too many entrepreneurs get enamored with their product or invention, or processes and trivia which have little impact on their startup.  Not to pick on them, but I see this with a lot of engineers and techie entrepreneurs. You may have the best product, the coolest logo, and the most high powered investors and advisors, BUT without a customer, you do not have a business.  The most important thing entrepreneurs need to focus on is their customers, who they are, what they want or need, and how you can help them.  Thrill them and you will be successful.  This needs to be your #1 focus at the beginning, and throughout the life of your company.

Be Flexible – Business plans are awesome.  I have seen many dozens of good ones.  I am a big proponent of planning, because the very act of planning helps you and your team think through challenges and scenarios, etc. and you learn tons through the process. But one thing is certain:  nothing ever turns out as planned.  Because of this, an entrepreneur needs to be flexible.  This could mean changing your solution, modifying your product, selling into a different market segment, etc.  The alternative, being inflexible, could be deadly to a startup.

Thanks very much for reading.  What do you think?  I’d love your feedback and thoughts, so please Comment below…and please sign up for my Blog too!  (See the Signup box on the sidebar of my Home Page)

Featured image courtesy of dierken licensed via creative commons.