Stephan UhrenbacherWriting about Entrepreneurship, some Green Stuff, some Learnings

There are four excellent companies who dominate how we search, how we shop, how we communicate, and which gadgets we use: Google, Amazon, Apple and Facebook.

The first three of these companies also are among the top 5 of the Fortune Magazine’s 50 most admired companies in 2010 . (Facebook is not in this list and this fact does not so much discredit Facebook as discredit the Fortune list).

But why write about this obvious fact of the Fab Four?

All these companies are product driven. This of course applies to Apple. The product is the hero, not the service around it, or the pricing. At Google, an engineer is much more important than a sales person. Just look at the amazing Zurich facility of Google and compare this to any sales office. If you listen to Mark Zuckerberg of Facebook, he will mostly talk about the product and new features that help Facebooks users to use the site in yet another way. Amazon has lead in meticulous A/B testing of it’s website, to make sure it stays ahead.

The other point I want to talk about is the sheer share of mind of these companies.

“Which startup is hot at the moment?” this question by a friend made me think recently. No offence to my fellow startup entrepreneurs, but it seems to me that at the moment where even a small redesign by Facebook will automatically be more talked about than the most exciting new business idea.

Even the slightest new announcement from Apple, Facebook or Google, – the aptly worded “buzz” as latest example – commands more press interest than a new car model or even the most fantastic new startup. Bloomenergy.com is at least here in Europe virtually unheard of. This share of mind is even more scary than the user numbers, as it makes life harder for new entrants.

The good news: Five years from now, the Fab Four will not be the same companies. Someone will get it wrong, someone else will get it right.

Five years ago, I would have included Ebay in that list, today no more. There is a nice account of how companies historically fail to stay at the top in the Black Swan by Nicholas Taleb. At writing of that book in 2006 , only 74 of the S&P 500 companies of earlier times had survived. But I am willing to bet that even in 5 years from now, at least three out of the four dominating companies will be from the West Coast. Probably the fourth as well, you never know with these Black Swans…

I spend quite some time these days coaching friends, former colleagues or fellow entrepreneurs about “what should I do next“. There are some interesting parallels in these discussions. Strikingly, the self-imposed limitations of what people feel they can do constrain people’s choices in an amazing way. And this is true for any income group. Despite the fact that single mom with a low wage job has fewer choices than the millionaire several times over.

I found over time that many people can not simply tell you what they love best. But when you ask people why they are unhappy in their job, it is rarely because they don’t love what they do, but  more often because they feel they can not do things the way they want, or because the someone as a boss who does not value them and their achievements.

In this context, stumbling upon this very inspirational blog post from Cal Newport, author of a study guide, (thanks, Dave Ambrose for the link) has structured my thinking on career achievement amazingly.

Newport quotes work from Edward Deci who found that

“To be happy, your work must fulfill three universal psychological needs: autonomy,competence, and relatedness.

• Autonomy refers to control over how you fill your time. As Deci puts it, if you have a high degree of autonomy, then “you endorse [your] actions at the highest level of reflection.”
• Competence refers to mastering unambiguously useful things. As the psychologist Robert White opines, in the wonderfully formal speak of the 1950s academic, humans have a “propensity to have an effect on the environment as well as to attain valued outcomes within it.”
• Relatedness refers to a feeling of connection to others. As Deci pithily summarizes: “to love and care, and to be loved and cared for.”

So for students, Newport argues that they should find something the really like and then become excellent at it. This will nearly always enable people to find a work environment where they can achieve a great sense of autonomy, competence and relatedness. Newport:

Your love of a subject will grow with your level of competence and autonomy

This also explains why many CEOs are unhappy in their jobs. Even if they are competent, the often suffer from a lack of autonomy. And if you encounter an entrepreneur who is unhappy, you can check with him whether his level of autonomy is where it should be.