Back in 1890, Rhode Island gave birth to something that almost died of a tragic ailment in 2005.
Narragansett Beer owned a 65 percent share of the New England beer market from 1919 to 1967 and was scooped up at its peak by Falstaff Brewing Corp. in 1965. By the early 1980s, the brand was in a downward spiral. Falstaff closed breweries and what was once a warm and friendly regional mainstay ("Hey neighbor--have a 'Gansett!") became a ghost of its former self.
Enter Mark Hellendrung, former CEO of Nantucket Nectars, and a group of Rhode Island investors who in 2005 saw potential in the dying 6,000 case-per-year brew. Six years later, Narragansett serves up more than 600,000 cases annually.
Last year, Narragansett's 120th anniversary weighed heavily on the guy who grew the iconic brand's distribution hundredfold in a mere six years.
"Don't screw this up," Hellendrung recalls thinking. "It's too good and too right to put it in the hands of someone who might screw it up."
But then he realized that screwing up the revitalized brand was the least of his worries for one simple reason: "It's not my brand or even our brand--it's a public trust," he says. "Our customers let us know what they want and we listen to them every day. If we get arrogant, we're going to hear about it--and fast."
Hellendrung had the guts to take on a brand left for dead. But whether you're a startup or a brand in need of a makeover, how do you avoid the land mine of arrogance that's so common?
So far this year, I've seen more than 75 startups pitch their goods to prospective investors. In every instance, I was able to say, "Yes. They have something." And they did. So what was it that resonated?
Humility. And while it takes confidence to push an idea into the marketplace, it's humility that prevents it from turning into arrogance, the idiot cousin of the confident businessperson.
"The difference between arrogance and confidence is self-awareness," says Jason Mendelson, founder and managing director of the Foundry Group. "The confident leader is self-aware of their customer's needs, their company's culture and the rapid changes that occur in their industry."
How do we avoid becoming the idiot cousin? We stay humble. Here are some thoughts to ponder as you bring your business down the road toward success:
- Ditch the swagger: Regardless of what you read in Nice Girls Don't Get the Corner Office or heard in the golf course locker room, people want to communicate with people who are respectful and humble. Swagger, while mildly impressive to some, is a turnoff for most.
- Communicate: Information flows both ways, but you can't listen when your mouth is moving. The best leaders are the best listeners and know when to turn down the noise and make a move.
- Know the difference: Humility is knowing we're going to get kicked (and when we least expect it) and striving to get kicked differently each time. Arrogance is thinking that no one would ever dare take aim.
Mind the line between confidence and arrogance and keep communicating. Given that only two-thirds of small businesses survive the first two years and fewer than half make it to the four-year point, we'd do well to embrace humility. After all, we never know who's listening and more important, who will have a great idea that helps us make the leap toward memorable, instead of becoming another forgettable casualty on the road of business.
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This article was originally published in the June 2011 print edition of Entrepreneur with the headline: Confidence vs. Arrogance.
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Comments:
A good Exercise in humility is to talk less during your next conversation and just absorb what the other person is saying. Probe them for information and really learn from them. It is amazing what people know if you stop to listen to what they have to say
I would place humility on par with longevity. The challenge to maintain humility is real once great successes arrive. That's when the humility of the entrepreneur really gets tested. When certain asset classes/markets begin to rise in value and your business does well as a by-product (remember real estate?), it's easy to assume profits came as a result of your brilliance. The tech world is probably on deck for a true test in humility as these huge valuations keep making headlines. Nice article pointing out that a grounded perspective is worth more than gold and is insurance for the long term.
Humility is a very powerful marketing tool, making a salesperson more likeable and more likely to secure a sale than the arrogant fool who tries to pass off as a confident business person. Success comes to the humble business person simply for the power that he can unleash.
Thanks for stopping by, David - and it looks like I"m 4 weeks late finding your comment! And you're right - arrogance and humility know no size. I'd say it's one of the few things left in our business culture that are "one size fits all."
Minor note: that's not a Bible passage.
So I'm about 4 weeks late in finding this, but just want to underscore that it's not just a small company principle. I once consulted to one of the largest mobile phone co's in the world, and humility was a core value -- and they were dominating the market by listening to their customers. But the word "humility" didn't sit well with employees in some of their larger markets in the world (including the States), and the company ultimately dropped it from their internal language. Totally invisible to the consumer, right? Except that over the next few years the entire company's confidence in its dominance and "right" approach meant that it missed evolutions in the marketplace completely, since those evolutions didn't start within its own doors. Your perspective is a good one, and supremely worth remembering for start-ups and OldCo's alike.
Yep - the definition of insanity is doing the same thing over and over again and expecting different results. So if we're going to get kicked, why not make it a new kind of pain each time? Thanks for the weigh-in, Quick!
Thanks, Anna - and I apologize for the late response to your comment. And way to go being the contradiction - business could use more people like you! Hope to see you around next month.
Glad you enjoyed the column this month - appreciate you taking the time to comment.
What a great reality check, Pete. If more businesses did this, you might find you had more competition out there. While the customer isn't always right, they do need to feel and know they have a voice. Sounds like you're giving them one in spades. Appreciate you stopping by!
I couldn't have said this better, Pia. And it's possible I'm going to mercilessly steal your outlook and share it with MY clients!
Though I'm admittedly not religious, I continuously gravitate toward the common biblical passage: Grant me the serenity to accept the things I can not change, courage to change the things I can, and the wisdom to know the difference. The wisdom to know the difference, being that of HUMILITY. "That being said", I've found that business doesn't have to be all business. Once you become more self-aware, you can take a step back, see situations for what they are, and get a little humor out of the whole deal too ;-)
Thanks for this! As my company finishes up its fifth year (doing quite well), I am really trying to make sure that I don't begin taking things for granted and become sloppy with the day to day. I think this is another form of arrogance, thinking that your company is established and feeling like you can now take it easy. I am working hard right now to ensure my customers that this will not be the case with my company, and that they can always expect 100 percent from me.
I think she means you would not make the same mistake twice. So you got kicked for mistake 1, you would not get kicked for that again because you would have learnt that lesson.
This is great advice for any business but especially for new and small business owners. Some times small business owners can be so busy and stressed, they may forget those common sense principles, so this is a timely reminder.
I loved this article. I'm always contradicting what most will tell entrepreneurs to do to get ahead. This info was right up my alley. Its nice to finally get some validation and see great advice like this. Looking forward to more!
Thanks, Kat - and you're right: finding that refreshing combination of talent and lack of ego is, without a doubt, one of the greatest rewards when doing business. Appreciate you giving me a read!
You win nine Random Redhead Points for the pun and thanks for subscribing! We'll see you over here next month and on Redhead Writing. We have a brilliant community with lots of dialogue - bet you'll enjoy. Cheers!
I understand this part of the statement: Humility is knowing we're going to get kicked (and when we least expect it) Can you explain this part a bit more? "and striving to get kicked differently each time." Different for different experiences toward growth? How has this been helpful for your business growth?
Excellent "distillation."(intentional pun?) Quite the compliment...may boost my confidence and make it hard to maintain humility. Witty, honest and direct. Refreshing! Grabbed your rss for my blog. Thanks
A business article about humility? Unexpected and refreshing. Couldn't agree with point #1 more: Ditch the swagger. Nothing is more off-putting than a blowhard, be it a person or a company. And nothing is more endearing than a person/company who has something of real value to offer, who is all about how it serves the customer, not the ego. Nice debut, Erika. Looking forward to more gems from you.
Excellent distillation. Thanks for stopping by for a read!
"people want to communicate with people who are respectful and humble"- "humble-confidence"= excellent customer communication.
I think it's super interesting that your comment misses the point of the article completely, especially given most of the comments attached to your Disqus profile are well thought out. The column has absolutely nothing to do with ferreting out customer problems - it's about the attitude and self-awareness you bring to building and marketing your brand. Maybe you want to take another swing? Oh, by the way - I'm a new columnist who interacts with her commentators and doesn't pull any punches ;)
High five, Bob. Listening - a crucial skill we can all learn to use more often, along with those pesky questions (as there's always one more to ask!).
To be successful. we need to solve the customers business problems and this requires that we listen to the customers so we can truly understand their current problems. Asking questions and listening carefully to the answers is the best way to ferret out the customers' problems.
You're right, Cheri - isn't this common sense? Well, it's common sense to those of us who are self-aware enough to acknowledge that others matter. Unfortunately, there are still organizations that let people "fail up" and thus, we have the bad managers. Thanks for stopping by!
So true! I don't think it matters the size of the company (as all were small once) - it matters their willingness to be part of a larger conversation, one that will take them places they never imagined possible. Thanks for stopping by!
Great points, Brenda. Because if we're not listening, what are we doing, really? Great things come from a two-way dialogue.
Great article: It reminded me of something: Many years ago I was pitching a client to develop a logo for one of their new brands. I left the meeting "full of myself" thinking that I had "nailed it" and just knew I was going to get the gig. Which, of course, I didn't. I was so shocked by this that I looped back with the VP of Marketing and politely asked her why. I had been "kicked" and humbled and fortunately recognized this as an opportunity to learn something. Her answer; "They loved your work, but you didn't ask enough questions. They didn't think you were interested in the project". You are spot on Erika: LISTEN, to your clients...keep your mind open and be interested in THEM and THEIR story. I was just a kid starting out when this happened. but what a wonderful lesson. It has stayed with me and served me ever since.
Great article. I've been thinking a lot about this lately as I really hone in on the core values for my company and team. I have been considering humility as one of our core values. It's so important to come to the table with confidence in your abilities, yes, but with an understanding that there is a second "right" answer. If we are not humble, our ears are not open - to the voice of our customer or to new ideas.
I'm way jealous! Do you have a blog? I think you need to write a post on working with Guy
Brandon, you're spot on. Guy was the best boss I've ever worked for. Approachable, Confident, Enchanting. He literally wrote the book on it, but this website killed my previous post, because I included an Amazon link to his book. ;-) Guy presence is genuine; we need more like him.
Great to see you over here, Brandon - appreciate you weighing in :)
Glad you stopped by, Jim!
I think I'd argue that Steve Jobs failed once because of the swagger. He was lucky enough to get a second chance at Apple, and while his ego certainly didn't shrink I'd say he toed the confidence / arrogance line a lot more lightly the second time around - thus the success of the iEverything. My 2 cents.
It really is all in the listening isn't it? I wonder how many failed entrepreneur's are the result of folks who ask for your opinion about something just so they can tell you what they think. You can't tell the customer what they want. Fails every time. Great article! Thanks for pointing me this way!
I'm a relative newbie to the working world. I work at a big company that's been rocked by the competition and by botched product-releases lately. After reading your column, I realized that part of the company's failings was due in large part to an air of arrogance and lack of humility in realizing faults in our products. A lack of realizing who we were serving -- not ourselves but our customers. I'm learning that humility is necessary in any business (whether big or small, start-up or established) because at the end of the day, customers ultimately buy our products, which pays our salaries and puts food on our plates and roofs over our heads.
I couldn't agree more. Guy was the *best* boss I've ever worked for. Approachable, Brilliant, Confident, Enchanting! Oh yea, he wrote the book on it: http://www.amazon.com/Enchantment-Changing-Hearts-Minds-Actions/dp/1591843790/
I think Guy Kawasaki is the perfect example of a Finding the right balance. I heard him speak and he just exhudes confidence. Yet at the same time, you don't see a spark of cockiness in him. You feel like you can walk up to him and make a suggestion and he'll really consider it.
Quite right. And I think it's simply because they have to belittle others to make up for whatever they perceive their shortcomings to be.
I just find it incredible that the concept had to be verbalized at all. Just like I don't understand why there are bad managers -- one would just think that you should treat employees the way you would want to be treated. Great article, by the way!
I can't stand overstated swagger or cocky people. It's a complete sign of insecurity to me. These are the types who often put other people down to make themselves look better.
That usually a more difficult confusion ;)
Alas - some people have technology that outshines the swagger. The stories of each, I'm sure, abound. And great quote on strength!
Richard Branson, Steve Jobs, Bill Gates: swagger, genius? As Erika has so eloquently said, most businesses must remain humble in its communications. Strength is what you bring to the table, not shove in people's face.
Glad you enjoyed! And you're absolutely right: when you meet someone who pulls off success with humility, there's no room you'd rather be in than with that person.
Great point, Chris. When we learn to be ourselves in business, we avoid all the "fronting" that leads down the path of arrogance and are better, I'm convinced, in the long run.
Conversely never confuse confidence with arrogance.
Great article Erika. The benefit I love most about humility is that it makes it so much easier to change and adapt to challenges and opportunities in our businesses. Pride & arrogance tend to cause us to like ourselves far too much to embrace becoming something different.
Good article, nice example. Being humble and being world-class at what you do - it's a tough balancing act but amazing if you pull it off.