Ep 71: Jim McKelvey: Co-Founder of Square on Art, Innovation, and Entrepreneurship

Jim McKelvey is a serial entrepreneur, inventor, philanthropist, and artist.  He cofounded the mobile payments company Square and sits on the Board.  He also founded Invisibly, a digital content company, LaunchCode, a nonprofit that teaches technology literacy, and a glass art studio. His book is called The Innovation Stack: Building an Unbeatable Business One Crazy Idea at a Time.

 

Some interesting insights from this episode:

  • He has never had a life plan and because of that, he’s become very comfortable with uncertainty.
  • He was a state debate champion and owed much of his success to the ability to read the judges and adjust his strategy accordingly.
  • “If you want to be successful and make some money, copy what works. But if you want to have a phenomenally successful company, you have to do something original.”
  • The big insight was rather than going after an existing market of merchants already using credit cards, Square decided to go after a market that didn’t even exist – the tiny mom and pop merchants without access to the credit card payment networks.
  • They designed a small card reader that looked really cool and got your attention but was flimsy and difficult to use. But the novelty of it turned every Square sale into a Square advertisement. This allowed the product to go viral without needing to spend one dollar on advertising.
  • What allowed Square to survive a competitive attack by Amazon and thrive as a standalone company was their innovation stack. An innovation stack is a series of innovations needed to provide a new product or service and that collectively work together to provide a competitive advantage in the marketplace.
  • Training as an artist was a big help in mentally preparing to be an entrepreneur.
  • “Excellence is something that’s above and beyond normal good. It’s something that’s surprisingly wonderful.”

 

Show Notes

Book: The Innovation Stack: Building an Unbeatable Business One Crazy Idea at a Time

Non-profit: LaunchCode

New startup: Invisibly

Ep 35: Beth Comstock: Disrupter, Innovator, Change Agent: The Former Vice Chair at GE

Beth Comstock spent over 25 years at GE where she was a vice chair, CEO of Business Innovations and Chief Marketing Officer among other roles. She has been featured in the New York Times, Forbes, Fortune and Fast Company and has been named to the Fortune and Forbes lists of the world’s most powerful women.  Her new book is titled Imagine It Forward: Courage, Creativity, and the Power of Change.

 

Some interesting insights from this episode:

  • Risk taking is a skill that can be learned.
  • “Most of us fear losing what we have more than we desire winning something we don’t have.”
  • Due to her risk taking mentality, Jeff promoted her to Chief Marketing Officer, a role that hadn’t existed at GE for over two decades.
  • She had to overcome a lack of self-confidence along with her introversion in order to speak up, challenge others and be effective in her role.
  • Success correlates as closely with confidence as it does with competence.
  • Much of the success of Hulu was attributed to hiring an entrepreneur from the outside and keeping him independent vs hiring someone from the inside.
  • She led GE’s disruptive green initiative called Ecomagination which pushed an aggressive clean energy agenda throughout GE’s multiple business lines.
  • GE executives often struggled to see parallels from developments happening in other industries due to a common cognitive bias called Functional Fixedness.
  • She pioneered a new program at GE called Fastworks which leveraged the lean methodology to experiment with new product ideas, increase innovation and accelerate time to market.
  • “Excellence is a never ending journey of learning and trying to get better.”

Ep 34: Doug Bernstein: Founder and CEO of toy company Melissa and Doug

 

Doug Bernstein is the co-founder and CEO of Melissa and Doug, a several hundred million dollar toy company focused mostly on simple classic toys for children up to 5 years of age.  He and his wife Melissa started the company together about 30 years ago.

 

Some interesting insights from this episode:

  • They never intended to build a company from the beginning but rather, were driven by their shared passion to do something good for children.
  • They are a product company at its core. If they simply focus on making great products, everything else will take care of itself.
  • Adversity can fuel motivation. When their supplier decided to compete directly with them, rather than sue or wallow in despair, they shifted their product development cycle and started to innovate with new products so quickly that nobody could keep up with them.
  • If you look at an obstacle as something that will take you out of the game, then it will. But if you look at it as something that you have to figure out how to get around, then you will find a way.
  • They’ve never been tempted to venture into apps and digital media despite external pressure because they feel it’s not good for children at that age and it’s against their corporate values.
  • They grew to several hundred million in revenue without one dollar of advertising. It was entirely word-of-mouth.
  • They don’t do any product testing but are still able to maintain a 75% hit rate with new product introductions.
  • “Excellence is always bringing your very best to what you do and always having the inner pride to do things the very best way.”