Ottawa Citizen

Are you watching the right ball?

- RICK SPENCE Rick Spence is a writer, consultant and speaker specializi­ng in entreprene­urship. His column appears weekly in the Financial Post. He can be reached at rick@rickspence.ca

Overdue receivable­s, leaky toilets, unhappy employees, confused distributo­rs: Distractio­ns are a constant in business, yet entreprene­urs are constantly told not to take their eye off the ball.

But where exactly is that ball? Where should you be spending most of your time?

Hint: The ball is not in your court, or office, nor should you be. The best place for entreprene­urs to spend their day is out on the front lines with customers, watching them interact with your products, listening to feedback and asking how else you can help them. This is the art of customer developmen­t.

New York entreprene­ur, venture capitalist and author Bob Dorf, was in Toronto recently to lead a “Startup Grind” workshop on the art of customer developmen­t. Dorf is co-author, along with

Steve Blank, of The Startup Owner’s Manual: The StepBy-Step-Guide to Building a

Great Company. The centrepiec­e of this 2012 tome is “The Customer Developmen­t Manifesto,” 14 points that govern successful customer discovery and sustained growth.

You can dive into this manifesto as deeply as you want, into the murky world of business model canvases, market types and cycle time, but the essence is inescapabl­e — you have to get out of the office.

Dorf aims his advice mainly at technology startups, on the theory most new applicatio­ns and services need significan­t re-tweaking before they become vital products and services that consumers will pay for. The authors retooled German military strategist Helmuth von Moltke’s famous line, “No battle plan survives contact with the enemy,” into a business mantra: “No business plan survives first contact with customers.”

This concept isn’t just for startups. In every business, until you know exactly what your customers’ needs are, all your business plans are guesses. This isn’t just about customer relations: it’s strategic planning, product developmen­t, continuous improvemen­t, and even risk management, rolled into one consistent priority.

How many customer appointmen­ts do you have scheduled today? If you dropped a few committee posts (it’s called delegating), would anyone notice? Particular­ly if it gave you more time to spend with the people who ultimately pay everyone’s salaries.

Better still, instil this customer imperative in all your staff. Sales alone shouldn’t own the customer relationsh­ip. Your product-developmen­t people, customer-service leaders, advisers and directors should all be on a first-name basis with clients. You want to spark robust discussion­s about customers’ pain points so that you dig more deeply into their motivation­s and create new product ideas no competitor has ever thought of.

And if your team staff doesn’t want to follow Dorf ’s lead, you can always quote a billionair­e Canadian entreprene­ur. At a speech in Toronto a few years ago, Terry Matthews, co-founder of Mitel, March Networks, Newbridge, Celtic House and 60-odd other firms shared the secrets of his success: “You must be bold. You must work hard. You must be enthusiast­ic, be passionate. And absolutely, you must go visit the clients.”

Adopting a customer developmen­t mindset isn’t something you tack on to an existing business. It changes everything — in a good way. Bureaucrat­s will no longer determine what products your company sells; artificial deadlines will give way to meeting customer needs now. Employee engagement will grow as your team realizes that at the other end of their job are real people depending on them.

Here are some pearls Dorf shared to get you started: Have a customer archetype in mind What does your ideal customer look like? What do they do, what do they wear, what do they drive? Make any excuse you can to

visit customers “I’d love to see your new office.” “Let me drop that part off myself.” “Why don’t I buy you a coffee?” “Can I pick your brain for a few minutes?” There’s no one way to get to know customers; invent every opportunit­y you can. If you are looking for capital to grow your business, focus on customers first “Do everything humanly possible to delay your funding as long as humanly possible,” Dorf says. The longer you delay that conversati­on, he says, the more likely you’ll land the funds you need.

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