Just What Is that Rhythm?
Dr. Shuman explains that “Rhythm” is not what academics often describe as behavioral characteristics. He looks at how entrepreneurs do what they do, and what the sequence is of what they do. “Most people that start businesses start it with a vision of the entity and what it’s going to be: is it going to be a restaurant, is it going to be a manufacturer of sporting goods… The natural born entrepreneurs don’t do that. They start a process that will manifest itself at various times as different business configurations. It’s a continuous never ending process. Michael Shane has demonstrated this process over and over since his first business.”
He does not define the characteristics of entrepreneurship as simply perseverance and the ability to deal with stress and risk, “These are attributes that are good to have but they are not the key elements. The key elements are to understand that there is a process.” He believes that the entrepreneurship being taught in many business schools is wrong because it teaches that venture creation is a straight line. According to Dr. Shuman the teaching is as follows: you start with a market opportunity; you develop the business concept to respond to that opportunity; you assess and gain access to the resources required; you apply those resources; you manage the business; and if you’ve done all of these things properly your business will be successful. All the better, if you possess the traditional characteristics of entrepreneurship. “The problem is that when you look at businesses that are successful, the entity that is successful is fundamentally different than what it started out as. The product, customer or application may have changed which means you can’t get it right the first time.” According to Dr. Shuman, this is a key observation – convention assumes you get it right the first time. “While it says you have to allow for flexibility it doesn’t give you any guidelines on how to manage being flexible or what that even means. If you start with the mindset that I won’t get it right the first time and that others shouldn’t think I should get it right the first time. People often start with the idea that they can get it right the first time and that they have too. What they wind up doing is when they lock in on that concept, when the second step in the conventional process starts they inevitably put on blinders that will keep them focused on bringing their vision to fruition. But those blinders block out information on what is wrong with their business.”
Dr. Shuman concludes that the key to entrepreneurial and business success is very simple, “The ability to satisfy the needs and wants of your customers better than anyone else in the world.” The acid test – Is there a customer out there willing to pay money for your product or service? “It’s only about satisfying the customer not about beating out the competition because by definition if you satisfy your customers the best in the world, you have no competition.” How do you establish this process? “Go to the market place to satisfy the customer. Get that feedback and continually tweak it to the point that you satisfy the needs of the customer, given that these needs constantly change for a variety of factors. You have to continue this dance. It’s a continuous process and if you’re lucky enough to ever obtain success it is often never final. The process continues because the customers’ needs constantly change.”
This has been a curosory explanation of the foundation of the process: that the development of a business is a never ending, dynamic event, requiring constant observation and adjustment. Dr. Shuman was able to reinforce his theory with two other natural born entrepreneurs: Bobby Greenberg, the founder of LA Gear, and Sketches; and Tim DeMello of Streamline. He has refined the process based upon his discussions with these entrepreneurs, and has applied it to other entrepreneurs to solidify this process that he calls “The Rhythm of Business.”
Current Happenings and Future Plans for The Rhythm of Business
Dr. Shuman intends to build a business around “The Rhythm of Business.” As the Director of Entrepreneurial Studies at Bentley College, the degree program he oversees is being built around “The Rhythm of Business” process. His book ,to be published this year, is titled, The Rhythm of Business: The Key to Building and Running Successful Companies. “The book describes and explains the process in easy to follow language.”
Dr. Shuman has given seminars to Fortune 100 companies that are increasingly interested in the entrepreneurial mindset. “Many companies have already been in that thought process for some time now and more are coming to this realization. The new companies are interested in programs that expose their key management team to this mindset of doing things.” Shell Oil and Sabre Group Holdings are just some of clients. What do these companies want from these lectures? According to Dr. Shuman, “When Sabre was under American Airlines it was protected by them and never really was exposed to having to find market share and customers. Now that they are alone they are in a brave new world competing for customers. Companies on the Internet such as 1Travel and Travelocity sell tickets at low prices and bypass the travel agents in the world. These entrepreneurial companies send the message that we can give you what you want for cheaper because you bypass the middlemen. Sabre now has to compete in this… to compete you need to think entrepreneurially.”
Personally, he will focus on “The Rhythm of Business”, and it mediums: the book, lectures, Web sites… “The belief now is that we are starting 3.5 million businesses per year in the U.S. alone thanks to one person shops like Internet shops, unprecedented venture developments in the former Soviet Union countries, South America and Asia. Entrepreneurship is exploding all over the globe.” Dr. Shuman is a firm believer that results are a direct function of the process. He wants to spread his message. “Ultimately you always have to go back to the creation of new products and services to continue to satisfy your customer’s wants and needs. These needs change because of the increased flexibility with evolving technology such as the Internet. The answer is exactly the same whether you are a brand new start-up or an established billion dollar company. Since the answer is the same for both companies, the thinking to succeed has to be the same.” – ###