Page 44 - (DK) The Business Book

42
IN CONTEXT
FOCUS
Maximizing opportunity
KEY DATES
1974 3M employee Art Fry
uses the adhesive developed—
and rejected as defective—by
a colleague six years earlier
to attach a bookmark in his
hymnbook. This chance usage
leads to the Post-it Note.
2009 A Harvard Business
Review article “Are ‘Great’
Companies Just Lucky?”
reports that in only half of the
287 high-performing companies
surveyed could success be
attributed to distinguishable
practices or features of the
organizations themselves.
2013 Five years’ hard work
yields music group Daft Punk’s
aptly titled song “Get Lucky”. A
result of industry collaboration,
market research, and strong
marketing and publicity, the
song’s commercial success
demonstrates the value of
business planning.
LUCK IS A DIVIDEND
OF SWEAT. THE MORE
YOU SWEAT, THE
LUCKIER YOU GET
LUCK (AND HOW TO GET LUCKY)
uck is usually regarded
as something over which
L businesses have no control.
Yet, as McDonald’s CEO Ray Kroc
said, “the more you sweat, the
luckier you get,” suggesting that luck The first rule of luck in
can be created. The reality is that business is that you should
both are true. As global markets persevere in doing the right
become more volatile and less thing. Opportunities will
predictable, luck plays an inevitable come your way if you do.
part in business success. Launch a Ronald Cohen
start-up at the same time as a rival UK venture capitalist (1945–)
and it may be luck that determines
who succeeds, and who fails.
Making your own luck
A well-considered business plan is
designed to dispense with reliance
on luck. A good idea, underpinned market conditions. In other words,
by detailed market research and what might seem like luck is often
solid financial planning, may help the result of planning. Take the
a start-up to ride the whims of the famous example of 3M Post-it Notes.
market. A good plan charts a course The invention of a reusable glue was
of action in turbulent markets, accidental, but it was business
protects against the unknown, insight that turned the lucky
and prepares the company discovery into a commercial success.
for contingencies. With so many variables, luck is
In addition, a well-conceived plan likely to play a part in the survival of
can ensure that a company is in a a start-up. But a good plan reduces
position to benefit from favorable how much luck a company needs. ■
See also: Beating the odds at start-up 20–21 ■ Gaining an edge 32–39 ■
Understanding the market 234–41 ■ Forecasting 278–79