Entrepreneurship: It's Not About the Product ... It's About the Passion

It feels very good to be here in Vancouver this morning. It also feels like déjà vu, since barely two months ago I was standing here in this same convention center on this same stage for Booz Allen's Worldwide Partners Meeting.

My fondness for Vancouver accounts for how quickly I said "yes" when Chuck Lucier asked me to come out here. It also accounts for the fact that I didn't ask enough questions.

You see, Chuck is a very enthusiastic and persuasive person. And he said to me, "I know you love Vancouver, and Booz Allen is sponsoring the Strategic Management Society conference there in October. It's a really important conference all the best thinkers from business and academia will be there and it would be great if you could come out and show Booz Allen's commitment to SMS and say a few words."

So, I said "yes."

A few weeks later I discovered that Chuck's invitation to "say a few words" had evolved into speaking about entrepreneurship at a plenary session—and sharing the podium with a recognized expert like Professor Atami who is renowned for his work in this field.

You know, we give a lot of the tough jobs at Booz Allen to Chuck because he somehow manages to pull them off. And now, I know how he does it—it appears that subterfuge is a big part.

On a more serious note Having spent a good part of the 1960s becoming an authority in a narrow area—fault detection in computer design—while working on my dissertation in electrical engineering, I know better than to come before an audience of experts and pretend to be one. So, in the interest of full disclosure, I need to tell you that I'm not an expert on entrepreneurship, nor do I stand before you prepared to defend my research and analysis on the subject.

What I do have is a perspective—a somewhat different way of looking at entrepreneurship based on my personal interest and experience. It's a perspective that, while lacking in analytics, I hope will be thought-provoking.

Actually, my favorite thing to do, watch, and read about isn't strategy or technology—it's sports. And, I'm convinced that the challenge of leading entrepreneurs in a large company is similar in many ways to the challenge of coaching a star athlete in a team sport.

Both CEOs and head coaches need to foster top performance and an attitude of smart risk-taking—they need to inspire their stars to "go for it" and they need to forge a strong bond between the star and the team.

Some of you may have read the current best-seller by the great cyclist Lance Armstrong, entitled, It's Not About the Bike. I've adopted Armstrong's title as a metaphor for my remarks today on entrepreneurship: "It's not about the product, it's about the passion."

I'd like to start by defining entrepreneurship and some qualities that distinguish star entrepreneurs. And, then I'll conclude by suggesting how leaders in large organizations can help stars succeed and help their entire team win.

In preparing for this speech, I talked to some of my Booz Allen partners around the world who I find to be good entrepreneurs in their own right, as well as consultants to clients who are good entrepreneurs. The first thing I asked them was—"how do you define entrepreneurship?"

Their answers were consistent and amazingly straightforward—especially when you consider how much grief consultants get for complicated language. They said, quite simply, "entrepreneurs build businesses."

My follow-up question was "Do you think entrepreneurs are born or can they be made?" Again, the answers were remarkably consistent. All agreed that entrepreneurs, like star athletes, are born with innate talent and unique vision. But beyond God-given talent, certain attributes and attitudes seem to distinguish the super-stars from the also-rans. These qualities are:

• Clarity of Vision
• Confidence
• Connection with the team—and¾most importantly,
• Passion.

Let's look at these one at a time.

First, Clarity or to paraphrase Lance Armstrong's book, "It's not about complexity, it's about clarity."

Star athletes and entrepreneurs seem to have a clarity of vision and purpose that is unusual. They are capable of seeing the future, seeing the goal line. They can imagine the possibilities, and cut through complexity. For star entrepreneurs and athletes, what it takes to win is very clear.

That doesn't mean it's easy, not by a long shot. But, their clarity of vision and intensity of focus means very little of their effort is wasted and makes it look almost "easy" to someone sitting on the sideline.

Think about the way star athletes like Tiger Woods and Michael Jordan make near-impossible shots look simple—time after time. In a similar vein, the best entrepreneurs can turn a seemingly simple idea into a powerful concept.

One of my partners, Ted Shema, commented on the simplicity of concepts behind Federal Express and Microsoft. He observed, "It's hard to think of an entrepreneurial success story built around a complex idea.

"Great entrepreneurs are able to create value from almost nothing, often by building on existing ingredients. Many times, you see the result and wonder 'Why didn't I think of that?' "

Joyce Doria, another senior partner, says, "Entrepreneurs see the world differently. They see possibilities. They see what can be." She believes entrepreneurs clearly have star quality. They see the goal line and push across it.

After clarity of vision, another attribute star athletes and entrepreneurs share is Confidence—or to paraphrase the Armstrong book again, "It's not about obstacles, it's about optimism." Confidence, optimism, and the perseverance to keep working toward the goal—no matter what the odds—is a defining characteristic of entrepreneurs.

John Harris, a senior partner who worked for Booz Allen during the 70s and 80s, then left to become CEO of Rockefeller Financial Services, returned to our firm last year. John is close to a number of successful entrepreneurs. He believes optimism is their most important quality.

Entrepreneurs try to do hard things. They have set-backs and failures along the way—but they're confident and optimistic that they WILL succeed even when they're surrounded by those who don't' believe—which is often the case in large institutions.

John gives the example of a manager he knew at Dow Chemical who remained optimistic and determined that a new class of plastics would lead to important products for the company, even as his research in the area was killed twice because no-one else saw the possibilities. The researcher never became discouraged—he was absolutely convinced that this would be a successful—and important—product line. And, in time, it was leading to plastic films that are resistant to oil and moisture, and today are used in the packaging of everything from peanuts and cereal to motor oil.

Interestingly, John believes that the education and mind-view that most of us share as analysts and problem-solvers runs counter to successful entrepreneurship.

Consultants, business managers, and academics typically demand lots of data, "the proof of the argument." Our analytics would wipe out the entrepreneurial spirit if entrepreneurs weren't so confident and persistent.

You can see this optimism in successful athletes and entrepreneurs—they continually take risks and put their confidence on the line. They play to win they don't play "not to lose."

This kind of optimistic risk-taking is always harder in large organizations where the stakes are higher, where there are expectations to meet (from shareholders, analysts, and employees) and where there's a lot more to lose.

The popularity of incubators, e-business ventures, and other non-traditional "skunk-works" are all attempts to help big institutions act more like nimble, optimistic "start-ups." Often this means spinning the new venture off from the larger institution.

Which brings me to the third attribute shared by entrepreneurs and star athletes—they are very good at seeing, and making, "connections." Entrepreneurs connect a product idea with a value proposition that fills a market need. It's this connection to the real world—not a pie in the sky idea—that turns concepts into powerful new businesses.

Entrepreneurs and athletes intuitively believe that they can do anything they set their mind to—but they can't do it alone. They need the rest of the team, a gifted coach, and a solid game plan to be their best.

Raw talent is never enough. Even in individual sports and small start-up companies, the stand-out winners are connected to a lifeline, a solid support system.

Entrepreneurship is an individual trait, but the most successful individuals understand the critical importance of the team.

In his book, Lance Armstrong makes it abundantly clear why world class cycling is a team sport, and how he won the Tour de France as a member of a team, not as a lone rider. The last, and I believe the most important quality for success—whether on the playing field or in the marketplace—is passion.

That's why I've challenged conventional wisdom in my title and say "Entrepreneurship is not about the product it's about the passion.

A great idea, product, concept, or talent is necessary for winning—but not sufficient. Stars need passion—no matter what arena they perform in.

The great dancer and choreographer, Martha Graham said, "Great dancers are not great because of their technique. They are great because of their passion."

Passion is the fire that makes stars and entrepreneurs push harder and farther despite the odds. And, passion is contagious—it inspires others.

Two weeks ago, Jeff Bezos, the CEO of Amazon.com and clearly a "star entrepreneur" of the new ecomony, was interviewed on National Public Radio's "Morning Edition" program. He was asked how he spotted stars to bring into his company.

Bezos said, "It's not just smarts, it's passion that matters especially if you're trying to do something hard. "You can have a job or you can have a mission. If you are going to join a company that's on a mission, you really need to be passionate about it. Because, otherwise, it's just too much work and it won't be fun. So, passion is probably the single most important criteria I look for."

At Booz Allen we use the term "zealots" a lot. Zealots are a kind of entrepreneur, and they are the kind of clients we really like to work for. Zealots have great passion about their work—they believe in change, invention and reinvention, and are willing to take the risk to "go for it."

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So, if clarity, confidence, connection, and passion are the qualities that lead to winning in the marketplace and in the athletic arena, how do we create an environment in our organizations that attracts and supports stars with these qualities?

I believe leaders of companies—and coaches of teams—can do several things to create the right climate for these success factors—to make our organizations places where stars want to be because they believe we'll make the most of their talent and effort.

Let me suggest three things we can do:

First, we need to reward stars commensurate with their achievement and talent. But we need to hold them accountable to play by the same rules as everyone else in the organization. This means differential rewards but consistent standards of behavior and accountability. If you don't reward stars for their extra effort and achievement, they will go work for someone else who will.

Even if they stay for a while, they won't be inspired or have the incentive to do their best if they're not appropriately rewarded. But, no matter how creative and productive stars are, they should not be permitted to flaunt the rules and values of the organization. Nothing will ruin team morale faster than if other employees or players see the stars given carte blanche to skip practice, abuse co-workers, and behave counter to the organization's stated values.

In addition to rewarding stars, we as leaders can foster a winning environment by running a good "front office." A good front office supports stars and provides them with a solid infrastructure, so they can focus on what they do best.

A good example is Jack Kent Cooke, the late owner of the Washington Redskins football teamwho was born in Canada. He built an entrepreneurial empire in publishing and sports entertainment and was known as a somewhat odd and eccentric person. But he had a eye for talent, and was loved and admired by his players because he ran a good front office—he supported the team, but didn't meddle in the game plan.

Here is a quote from Cooke's obituary in the Washington Post, "In 1952, the Sporting News named Cooke [who owned the Toronto Maple Leafs minor league baseball team] 'Minor-league Executive of the Year.' Cooke's acuity in the business office was matched by a sharp eye for on-the-field leadership potential. At Toronto in the early 1960s, he launched the managerial career of an obscure infielder named Sparky Anderson, who would become the first manager to win the World Series with teams in both the National and American leagues."

Cooke would go on to buy and lead the LA Lakers NBA team and the Los Angeles Kings National Hockey League team, before moving to Washington and acquiring the Redskins, who would win three Super Bowls for him.

So—as leaders, we need to spot talent, and provide the right reward system and a good infrastructure to attract, retain, and motivate stars.

There's still another thing we can do—we can create a culture of belonging that binds stars to the organization.

Stars and entrepreneurs are rugged, talented individuals—but they are still social creatures. And they will be happier and more successful when they feel a strong psychic connection to their company or team.

A strong team culture can be an important part of the overall reward package and serve as a kind of "golden handcuffs" binding stars to the team. Without a strong team or corporate culture, stars will think like free-agents and be ready to jump ship at the first offer.

I'd like to finish with a personal story of someone whose life exemplified these values and who understood very well the parallels between winning on the playing field and winning in the business world. He was also someone who understood how much children can teach us about the power of play.

Last week, I was standing at a different podium—the one in our auditorium at Booz Allen's headquarters in McLean, Virginia. I wasn't giving a major speech—quite honestly I had elected not to, because I knew it would be a very emotional occasion and I wasn't sure that I could get through a speech.

The occasion was the dedication of our auditorium in memory of a close friend, Booz Allen Senior Vice President, John Newman—who died in April. Unlike Lance Armstrong, I'm very sorry to say that John did not win his battle with cancer.

But, like a star athlete—and just as important, like the coach of star athletes—John understood and taught clarity of vision, confidence, connection with the team, and passion for winning. When he wasn't building new businesses for Booz Allen and helping transform client organizations, you could find John on the soccer field coaching young people.

He inspired his kids with purpose and passion—and he taught them how to win. He learned from them, too. John saw that his young players were natural optimists and winners, and he drew great strength and wisdom from coaching them. He brought that spirit back to the office to share with us "grown-ups" who tend to over-complicate things and be too quick to criticize.

Lance Armstrong observed the same thing when he wrote about how rewarding it was to work with children. He wrote, "Children are very determined little characters, and you don't have to give them big pep talks. Adults know too much about failure; they're more cynical, and resigned and fearful. Kids say, I want to play."

We can all learn from children—from their energy, their optimism, and their passion for play. There's a big emphasis on youth in the new economy, but entrepreneurs don't have to be "young in years" to succeed. They do need a youthful outlook and openness to new ideas.

We as leaders need to encourage this—because entrepreneurship is not about complicated business plans or critical evaluations, it's about a passion for play and new ideas.