A New Business Model and a New Bestseller?
Every so often a literary agent gets the chance to represent a book that is so unique in every way that it is a privilege to represent. Last week I was given the opportunity to handle such a property. However, I must confess, that I did not immediately “get” the book, largely because it breaks most every rule of business book publishing. First a bit of history.
Two European authors—Alexander Osterwalder and Yves Pigneur—spent years putting together a stunning book on business models entitled BUSINESS MODEL GENERATION. The two authors had a great deal of help with the design and content of the book, as it was co-authored by 470 Business Model Canvas practitioners from 45 countries, which in itself is highly unusual for any book, business or otherwise. The authors self-published two versions of the book, starting with a gorgeous 4-color hardbound version that lays flat when you set it down on a desk or table.
Some weeks ago I was contacted by author Alex Osterwalder asking if I would represent him and the book (I was referred to him by one of my other authors). My first reaction was to refuse taking on the book. After all, even though the author self-published 5,000 copies of the book and sold them all through his website (businessmodelgeneration.com) , there was no “official” record of those sales so I knew that publishers would be quite skeptical of the book. And that was only one roadblock. There were also several other obstacles the book faced that would make selling it to a top notch publisher an uphill battle:
* The authors were not based in the U.S., which often complicates matters
* The book has a “clunky,” awkward title (Business Model Generation does not roll smoothly off the tongue)
* The book has a very high price tag of $46.99, more than double the average price of a bestselling business book—and in an impossible economy to boot
So I did not take on the book. Then, some weeks after the authors sold out their 5,000 copies, they reprinted 10,000 copies of the book. Now here is where things get really interesting. On February 3rd, 2010 the authors managed to get a third party seller to sell the book on Amazon. Finally, the authors would get some help in selling the book beyond their own websites (the other site is businessmodelalchemist.com). But once again, there were obstacles that made it very difficult to sell the book on Amazon:
* It’s not even Amazon selling the book on Amazon, but a third party vendor
* It is very difficult to even figure out the price of the book on (see the Amazon page for the book)
* There is absolutely no discount offered for the book (usually Amazon discounts books by 40 percent)
* The Amazon page is so bleak, it makes the book appear as if it is out of stock
One would think that all of those obstacles would derail the book, but a funny thing happened to the book on the way to the bestseller list. The minute the book became available on Amazon, buyers came out of the woodwork to purchase the book. Within 48 hours the book ranked as high as #74 on Amazon, an amazing feat for most any business book and especially this one. Since then, the two versions of the book have occupied two of the top 25 slots on Amazon’s list of bestselling management books every single day. This kind of success is so rare that I would classify this book as a “phenomenon” book, one that beats huge odds to become a bestseller (and this is before any publisher has entered the picture). This time I did not repeat my mistake and happily agreed to take on the project.
Last week I contacted a handful of my favorite editors/publishers and this time I was not surprised when every publisher I notified expressed interest in the book. Given the success of the self-published versions it was hardly surprising that interest among publishers would run high. By this time next week we should have found a great home for the book, with a publisher that sees the book for what it is: an exceptional product that is helping to build a community of people who appreciate all of the blood, sweat and tears that make this a one-in-a-million book and opportunity.
Winning in the Zero-Growth Decade Ahead
This week marked a milestone for me and my relatively new publishing business: I signed on to ghost write my first major book project. The book—a much anticipated watershed book that is the brainchild of one of Wall Street’s most sagacious former money managers—will be published by McGraw-Hill, the same great publisher that employed me for more than a decade. Although in months past I had been offered the chance to work on other books as a ghost writer and/or book doctor, none of them felt quite right until this one. But I am getting ahead of myself. Let me back up a bit.
A few years back I contacted Gary Kaminsky, one of the managing partners of ”Team Kaminsky” at Neuberger Berman to see if he might like to write an investing book. Gary—a money manager with nearly two decades of hands-on experience—was both cordial and professional when he told me that he simply couldn’t. His day job of helping to manage more than $13 billion in assets consumed all of his time and taking on a book project then was simply out of the question. However, I knew Gary’s record as a money manager—he was simply one of the best around, routinely outperforming both the averages and the returns of most other money managers. He also made scores of appearances on CNBC, and his presence and platform was only building. Given his track record and rising star, I was not about to give up. I kept Gary’s cell phone number on speed dial in the hopes that one day he might be able to do the book.
That hope became a reality in late 2009. Gary had left Neuberger Berman—which had been acquired by Lehman Brothers—four months before Lehman crumbled. Gary, a visionary in the markets, also had the vision to recognize that Lehman was headed down an inescapable road of ruin and wanted no part of it. He was now free to pursue a book project and I was determined to be his guide and partner into the world of business book publishing. Luckily, Gary and I hit it off from the start. After only a few conversations and a meeting at The Ritz Carlton in Chicago, I interviewed Gary for a full day in his suite at the Ritz. Unlike most first time authors, Gary was focused like a laser on his message. He knew exactly what kind of investing book he wanted to write—a book that would make a bold prediction about the future while peeling back the murky layers so that retail investors would learn Wall Street’s dirtiest secrets. We called the book WINNING IN THE ZERO-GROWTH DECADE AHEAD: HOW TO MAKE MONEY WHEN MARKETS GO NOWHERE and we spent the next ten weeks collaborating and refining the book proposal. We were then ready to meet with publishers.
Every one of those meetings went well. Every publisher we met with was enthusiastic and brought something special to the table. However, it was clear from the start that McGraw-Hill felt that this was a book they had to have. They brought a talented team to the meeting with us (represented by editorial, marketing and publicity), and then described how this book would be their tent pole for their fall 2010 list. Another upside in selecting McGraw-Hill was that I would have the chance to work with people I truly loved when I worked there.
Now comes both the hard part, and the fun part. Gary and I have to write the book. But if the proposal process was any indication of what it will be like to work together, we should have little problem putting together one great book. After all, neither of us are strangers to hard work, and we both share Gary’s vision for the book. If all goes as planned, look for the book on store shelves by year’s end.
My Publishing Outlook for 2010
I must forewarn you that I am an optimist at heart and always will be. However, I am also a pragmatist and have learned that “facing reality” is one of the most important business philosophies if one is to succeed. That said, I believe 2010 is going to be a very good year for business books.
2009 was anything but.
Many publishers were forced to scale back their programs, lay off scores of good editors, marketing people, and other professionals—all while combining and reorganizing various imprints. They did all of this against an ugly backdrop of an awful economy and a liquidity and housing crisis that sunk the Dow to multi-year lows in March of 2009. If you are wondering what the Dow has to do with business book publishing, the answer is “everything.”
Sales of business books—all business books, not just investing and finance titles—are very much dependent upon a strong stock market. Now that the Dow is over 10,000 once again and consumer confidence is up for the second month in a row, sales of business books will likely improve in the first quarter of 2010. However, we are not out of the woods yet. We are still seeing publishers continuing to cut positions and reorganize publishing divisions. But I believe that we are in the seventh inning on that—much nearer to the end than the beginning. Those publishers that do not cut back so sharply will fare the best when things turn around. Some publishers are positioning themselves to come out on top by continuing to aggressively acquire new titles to be published in 2010 and 2011. Of course, a great deal depends on the books and publishing programs of various houses. Unfortunately, several topics have already been over-published—think Bernie Madoff and the Liquidity crisis— and that trend will continue (publishers always follow trends and tend to saturate markets very quickly).
However, there are many great business editors out there who are acquiring and publishing original and compelling books. These innovators will be the ones most amply rewarded when the economy comes back. And the economy and the financial markets always come back…eventually. I happen to be one of those who believe that it will be sooner rather than later.
The Killer Book Proposal
The most common question I get from first time (0r even second time) authors focuses on how the publishing process works: How do I get started? How do we make sure that publishers will be interested in my book ideas? How do I set my work apart from the pack? These are good questions, and the answer to them are all the same.
It all starts with a killer book proposal.
Much to many authors’ surprise, it is a rare event that a publisher gets an entire manuscript in the mail. Instead, publishers get book proposals to review. And while no two proposals are constructed exactly the same way, the best of them contain the same elements—those key segments that all editors look for. The purpose of this posting is to give you an idea of exactly what needs to be included in every business book proposal. For those “big” books—one that you feel could break out and make a bestseller list—your proposal should run about 50 pages in length. That’s what is required to give editors and publishers a complete, three-dimensional picture of your book. As to what should be included, consider the following:
* A synopsis of the book, describing the book as vividly as possible. Make it sound compelling. Draw a picture of what the final book—the finish line—will look like. This overview of the book should not only paint a vivid picture of your book, it should also be written to draw readers in. This first critical section of the proposal should run about four to six pages but could be longer or shorter depending on the book topic, what you intend to write in other parts of the proposal, etc.
* The primary benefit of the book: also known as the USP, or unique selling proposition; what will readers get out of your book that they can’t get elsewhere? This could be part of the synopsis of the book or could be written as a separate—albeit brief—section of the proposal. The key here is to make your book sound like a “must have,” rather than a “nice to have.”
* A quick description of the target audience: this is important, since it will tell us who you are trying to reach. Is it a general Wall Street Journal audience, or higher level, such as financial professionals? If it is a leadership book, is it for “C suite” executives? Or is it for most anyone who sits in a cubicle? This section can be written in a couple of paragraphs, but is nonetheless important.
* Competing books:tell us what books are closest in content to your book. However, this is a bit tricky. The key is to include books that are not only similar to yours, but have also sold well. You may not know which books are successful, so this is one key area for your literary agent to step in and help. Most agents subscribe to a service which includes the sales records of all books published in the U.S. One additional note of caution: you should not include books that have sold hundreds of thousands of books, especially if you are a first time author or someone with anything less than a spectacular track record. Including blockbusters as competitors will make editors think you have unrealistic expectations or even a bit delusional.
* Books specifications: all relevant specs—the length of the book, number of tables, graphs or other pieces of art, and how long it will take you to write the book should be included. Is this a 150-page book or a 350-page book? This is the section that gives editors real insight into the length and level of the book you intend to write.
* A chapter-by-chapter summary: These are crucial, and should run one-to-two pages in length. This is where you put the meat on the bone and give editors real detail on the content of the book. Make sure you include a table of contents first, and then list every chapter title followed by a detailed description of all of the key topics to be included in the book. This is the longest part of the proposal. If you have, say, a fifteen chapter book, then this section should run about 20-30 pages.
* One complete chapter: This is particularly important, especially if you are a first-time author. This shows publishers how talented you are as a writer, while also providing the most amount of detail on one particular topic in the book. Make sure you select a chapter that really is pivotal to the book, and one that you know very well. It should also be one of the most interesting chapters in the book.
* Your bio and platform: This is yet another critical—and usually the final—part of the book proposal. However, your platform—those things that you do that will help sell copies of the book, re: seminars, speeches, TV appearances, social networking presence, etc.—is so important that I usually ask authors to include aspects of the author platform throughout the proposal. For example, if you are an author that appears three times a week on a cable news channel, then you might even lead with that way back in beginning, in the synopsis of the book. The key here is to use your judgment, and remember that the author platform is one of the most important determinants of whether or not a publisher (or multiple publishers) will make an offer on your book.
The 4E’s of Leadership: Still the Best Management Model
Long before The Unforced Error, there was one of the best management models I have ever learned. In fact, it was the subject of an entire book entitled JACK WELCH AND THE 4E’S OF LEADERSHIP and it turned out to be one of those quiet classics that still sells today—five years after its original publication.
That’s because this management model is timeless and works in any kind of organization, of any size. It’s also a simple model that anyone could grasp quickly (although the detail in my book helps to make this model operational in no time). First let’s define the 4E’s:
Energy: People with energy go 75-miles-per-hour in a 55-mile-per-hour world. People rich in this “E” jump out of bed in the morning ready to take on all challengers. They need no caffeine to operate at peak performance.
Energize: Energizers articulate a vision and then get others to turn that vision into a reality. They spark others to perform. They take the blame when things go wrong but give others the credit when things go well.
Edge: People with Edge know how to make tough decisions. They know when to say yes and when to say no. They avoid the maybes. These solid decision-makers are more valuable than ever due to the turbulent times in which we do business.
Execute: At first there were only the three “Es” above. But GE discovered that some managers who were rich in the E’s above still did not make their financial targets. That’s when the fourth “E” was added. Managers who possess this “E” get things done. They make all of their commitments and make their numbers.
Those are the E’s. If you are an employee or a manager, you should work toward improving your “E” quotient. If you are a hiring manager, look for people who have these traits. If you want to learn how to put them to work in your organization—and you will forgive the self-promotion—get your hands on the only book that explains how to implement this model step-by-step—Jack Welch and the 4E’s of Leadership.
Make Sure to See the Whole Court
Continuing with the tennis analogy employed in THE UNFORCED ERROR, as in tennis, people in business need to be sure they have a clear view of the court at all times.
When I say the whole court, I mean the entire playing field that serves as the backdrop to our jobs and careers. When I go out and speak to groups, I warn them about getting tunnel vision or “cubicle vision.” I tell them that it is not enough just to see what is going on in their own departments. They need to see what is going on with their unit, different parts of the company, competitors, the operating environment, etc. Only then can you get a clear picture of how well you and your company are doing, and more important, only then can you take meaningful steps to make things better. In these very tough times, with a national unemployment rate hovering at about ten percent, few of us can ill-afford to be caught off guard by a situation that we simply did not know about because we were too lazy to do our due diligence.
For example, say you work in the marketing department of a food and beverage company. You get good performance reviews, and morale in your department is fine. However, what you are not aware of is that parts of the sales department is in ruins. The company laid off 20 percent of the department because sales for the Eastern region fell off a cliff. As a result, the company is going to have to make job cuts across the board, which includes your department. Had you known, you might have stepped up your game knowing what was at stake; and you could have been better prepared to search for a new job knowing that yours was on the line. In this extreme scenario, you would have to be a real ostrich to get caught this much off guard. But this stuff happens every day in organizations.
Most other situations are a bit more subtle. For example, you may be a salesperson in that same company and not know that your biggest customer is in real trouble, endangering the business that you do with them. Their sales make up more than 15 percent of your [individual] total sales budget, so not knowing that they may shut down their doors could also cost you your job. That example isn’t all that subtle either, but you get the idea.
When things are as tough as they are now, with unemployment rates so high, you must constantly work without blinders. The risk for failing to do so is simply too high.
Protect Your Flanks
“Protect Your Flanks” is a chapter in my newly published THE UNFORCED ERROR. I gave it quite a lot of thought before I decided whether or not to feature it in the book, but in the end, felt it was too critical a topic to omit.
That’s because all organizations have some sort of office politics, no matter how much you (and I) might hate the thought. According to author and career expert Dr. Kathleen Reardon, people with “political savvy, agility in the use of power, and the ability to influence others will go further.”
That’s why it is so important to protect your flanks.
You need to use all of your contacts within the organization to be sure no one is bad mouthing you to your boss. I have seen this scenario play out countless times and it is never pretty. In fact, it’s downright unethical and even immoral. What right does one person have to play with your career and your livelihood? Yet it happens every day in almost all organizations of every size. You have to have enough contacts and be plugged in to the company grapevine or you risk having the rug pulled out from under you before you know that you’re standing on one. How do you do this?
Seek out people in the organization. If you do not make friends, at least make acquaintances. And don’t limit it to people in your own department or work area. It could be people in other departments that have the ear of your boss. Perhaps you made an enemy without even knowing it, or perhaps people are just jealous of your success. Regardless of the specific circumstances, you have to establish a friendly, informal network within the organization so that you are not the last to know that you are in the doghouse—and possibly on your way to the poorhouse if you get canned.
One other piece of advice is more straight forward. Talk to your boss on a regular basis. Ask her if there are things you can be doing to help her make her goals—and the goals of the division. And do not wait for a performance review to find out what things you can do to raise the level of your game. These informal conversations will provide ample opportunity for your boss to let you know if there is a problem or any other issue that may have a profound affect on your future.
101 Compelling Books to Ponder
Today I came across an interesting list that I think is worthy of at least a quick look. It can be found on an unusual site:
One of the most interesting things about the list of 101 books is that it includes both great classics as well as other lesser known books. On the classics side, they include—Adam Smith’s Wealth of Nations, Amy Shlaes’ The Forgotten Man: A New History of the Great Depression, and Peters and Waterman’s In Search of Excellence.
Lesser know titles include: Suzy Welch’s 10/10/10, Seth Godin’s Tribes and W.J. King’s The Unwritten Laws of Business.
Lastly, they divide the list for reader’s ease of use, under these nine sub-categories (which all have links to Amazon): The Top Twenty, Management Skills, Effective Communication, Smart Investing, Professional Writing, Personal Finance, Negotiation, Innovation and Entrepreneurship.
Don’t Hire on Resume or CV
In the last post I talked about people you should not hire. Here we will do a 180 and talk about the people you should. Herb Kelleher, the founder of Southwest Airlines, was all about attitude and creating an organization that fostered a positive, upbeat atmosphere. He felt strongly that people could be trained, and urged managers to “hire good attitudes even when the people with bad attitudes have superior degrees, experience and expertise.” He also felt that people should be allowed to be themselves at work. No employee should ever have to put on a “work mask,” he once told me in a written interview.
Research and experience shows that Kelleher is right. Choosing someone because of an impressive resume over an individual with a winning attitude can be a huge unforced error.
How do you know how to spot someone with the right stuff?
I have always looked for people with character—individuals with the DNA that allows them to put the company above themselves. That’s often the difference between a good hire and a bad hire. People with personal goals often go the extra mile when the company needs them most.
There are other ways to discern the out-performers from the laggards. Trusting your gut is usually a good idea, especially if your gut has served you well in the past. Or, perhaps you have heard from multiple constituencies (e.g. customers, colleagues) that this individual is not a team player. If you need a formula to identify top notch people, consider one of my favorite Jack Welch management models. People with good attitudes are also more likely to have his “4E’s of Leadership.” What are the 4E’s?
Energy—people who go at 75 miles an hour all the time. Energize—are those managers that fire people up. Edge—managers with edge know how to make the tough decisions and avoid the maybes, and Execute—those managers who deliver results. Hire the people with the right attitude, people who score high on the E to the 4th scale, and you are far more likely to reap the benefits of a great manager or employee. Hire on the basis of resume—which reveals little about someone’s “E” quotient, and you may find yourself having to clean up a huge mess somewhere down the line.
Want to know more on what to do and what to avoid in the workplace? The Unforced Error, my new book, is now available at Amazon and at all good bookstores.
Fire Those Who Don’t Live Up to Expectations
In the last posting I discussed how hiring the wrong person is one of the greatest unforced errors a manager could make. Close behind that one is keeping the wrong person even though you know he is all wrong for your unit and/or company.
How do you know when someone doesn’t belong?
He may not live up to the rules of the organization, especially the unwritten ones. Or he or she may simply fight against every key management initiative. Or an employee may simply be over his or her head in their current position. In these unsettled times, with unemployment at about ten percent, there is no reason to keep someone who does not perform with distinction. In most industries, there are others on the bench and unemployment lines just waiting for a chance to show you what they can do. But that’s besides the point.
Jack Welch was roundly criticized because he eliminated the bottom ten percent of the GE workforce every year. Early on he was called Neutron Jack (for eliminating people but keeping the buildings standing) and far worse by those who felt the full impact of this particular leadership tenet. But, as Welch pointed out, the New York Yankees fire the weakest players every year, so why shouldn’t his company? After all, both want to win and ridding the organization of non-performers increases one’s chances of winning. My new book, published today, The Unforced Error, increases chances that you will be retained and promoted rather than fired or left to twist in the wind.
The key is to make sure that when you discover someone who does not fit your company, move quickly. One of the greatest confessions made of big time CEOs is that when it comes to important matters, they never moved quickly enough. There is a lesson there for all of us, particularly those procrastinators who can’t ever reach inside themselves and make the really tough decisions that need to be made.
- A New Business Model and a New Bestseller?
- Winning in the Zero-Growth Decade Ahead
- Business Book Editors at the Top of their Game
- My Publishing Outlook for 2010
- The Killer Book Proposal
- Find a Writer that Speaks Your Language
- When No Track Record is Better than Some Track Record
- M&A, The “Mad Men” Way
- Thanksgiving and Publishing
- Dow 10,000: A Sign of Things to Come?
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About Jeffrey
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As former Vice President and Publisher of McGraw-Hill's trade business books division, Jeffrey Krames has personally edited and published more than 275 business books, including many award-winning, best-selling titles on business luminaries that include Jack Welch, Michael Ovitz, Ross Perot, William Paley, Michael Dell, Bill Gates, Herb Kelleher and Lou Gerstner among others. Read more...
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The Unforced Error
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