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profiles: A Board Game That Breaks All the Rules

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A Board Game That Breaks All the Rules

August 15, 2006

BACK IN 1998, when Richard Tait was using the color copiers at Kinko's to piece together a prototype of a board game he'd invented called "Cranium," little did he know the finished product would unleash such passion in game addicts that they'd dub themselves "Craniacs."

Eight years later, countless players in living rooms world-wide have performed the game's wacky challenges, which include humming KC & The Sunshine Band's "Shake Your Booty," sculpting a stalk of asparagus out of clay, and spelling words like "tonsillitis" backwards (without looking). Gamers have written to Tait, telling him of friendships renewed over spontaneous break-dancing sessions. Parents have reported that their kids voluntarily turned off their video games for family Cranium sessions. Fervent fans have even pleaded with Tait to print special game cards that propose marriage to an unsuspecting significant other — and, on four occasions, he's complied.

This fanatic response initially took Tait off guard. But it was largely the customers themselves who drove sales during the early years. "Our players — our customers — loved to tell stories about what happened," he says. "We sold over a million games without advertising."

Now, more than 16 million copies of Cranium and its spinoff games, such as Cranium Cadoo, Zooreka and Zigity, have been sold, and the Seattle-based company has expanded internationally and launched books and a new line of toys. (The privately-held firm, which has secured $34 million in private funding, doesn't release revenue figures.) For four out of the past five years, Cranium has won the Toy Industry Association's "Game of the Year" award, besting entries from Hasbro and Mattel. How can a company so young be one-upping the toy-making giants? Tait, a one-time Microsoft executive, says it's his penchant for rewriting the rules.

For starters, Tait's official title is "Grand Poohbah," and his business partner, former Microsoft co-worker Whit Alexander, is "Chief Noodler." Tait's professional credo is "Orville Wright did not have a pilot's license." Born in Helensburgh, Scotland, he lists "shepherd" on his resume (along with Microsoft Employee of the Year). And on Cranium's web site, he proudly lists his experience in the board game industry as "None. And that's an advantage."

In fact, Tait, who had launched Internet business ventures at Microsoft, wasn't sure what he'd create when he decided to leave the software giant in 1997 and put his entrepreneurial mettle to the test. But inspiration struck while on vacation with his wife, Karen, and another couple in the Hamptons.

"It was one of those rainy Sunday afternoons, and they suggested that we play a game of Pictionary," he recalls. "Karen and I are phenomenal Pictionary players, and we won quite handsomely." The other couple — perhaps in revenge — challenged the Taits to a round of Scrabble. "Sure enough, they humbled us in Scrabble," he says. "And I wondered why there wasn't a game that gave everyone a chance to shine."

And with that, the idea for Cranium was born. Tait and Alexander designed a game that would equally welcome the terrible speller who can sing unabashedly, or the star crossword player who can't draw a stick figure. Cranium's four decks of cards — Creative Cat, Star Performer, Word Worm and Data Head — allow players to show off a variety of skills and use different parts of the brain.

Of course, getting Cranium out of Kinko's and onto store shelves was a challenge — and Tait and Alexander made some rookie mistakes. During their first year, their biggest was missing the American International Toy Fair, an annual industry conference for manufacturers, distributors and sales agents, where buying decisions are made. "We hadn't done the research," Tait admits. Yet, not following the traditional path ended up being a boon to business. "We had to show a lot of creativity," he says. "Often, a door that closes will result in some of your best creativity."

Having missed Toy Fair, Tait and Alexander fled to that bastion of lost yuppie souls — Starbucks — to lament the missed opportunity and mull their options. "We looked up, and saw all our customers standing in line," he says. "We thought: Let's take our games to where customers are, rather than where games are sold."

Cranium, which retails for $27.95, became the first game sold at Starbucks (Tait used his business connections to land an audience with Starbucks' CEO, and persuade him to stock Cranium in the coffee shop); eventually, distribution deals with Amazon.com, Barnes & Noble, and specialty game retailers followed. "We love to change the rules, and that's something I'd encourage other entrepreneurs to do," he says.

Brain Power

Your name: Richard Tait
Name of business: Cranium, Inc.
Year founded: 1998
Business type (industry): Toys and Games
Location: Seattle, Wash.
No. of employees: 100
Web address: cranium.com

Where do you look for business advice? (Mentors? Industry or trade groups? Family and friends?)
I have been very fortunate in my life to have the right mentor at the right time and they have been a key source of inspiration, feedback and guidance for me. They can also come from all walks of life whether it was Steve Ballmer at Microsoft who taught me about passionate leadership, Howard Schultz who has mentored me on branding and the emotional contract with your customers, or Dave the shoe-shine guy at University and Fourth in Seattle who has taught me about the importance of differentiation and how a company must evolve to survive. I also read business literature and magazines like a maniac, I don't really read recreationally so reading and learning from business books is a key way for me to stay informed. Above it all, my dad has been one of the most important influences in my life. He changed the path in history for our family and taught me the importance of hard work, belief in myself and to never give in.

What do you know now that you wish you'd known when you started?
Our recruiting mantra has been to hire for how people think and not what they know. Hire for smarts and rent experience. This has allowed us to recruit some of the most creative thinking minds in the world. In finance and operations you want to find people who have done it before.

What's the smartest move you've made so far?
I think there have been two. First is to create a mission-driven company and build a culture around that mission. We started the company with the belief that the world needs more shining moments and we were going to be the company that gave everyone the chance to shine. With that as a mission we have people who are dedicating their lives to make that a reality. It's not a job, it's a calling. They are creating history and bringing families together. The second was to turn the world of games distribution on its head; we took our games to where our customers are rather than where games are sold. We were the first game to be sold on Amazon.com, Barnes & Noble and of course, our most celebrated entry, and among the first nonbeverage products ever to be sold at Starbucks.

What is the best business book you've read?
"Orbiting the Giant Hairball," by Gordon McKenzie. It highlights the importance of staying creative as an organization grows.

What keeps you up at night?
Replicability. We have won Game of the Year four times in the last five and now have award-winning books and toys. The expectations are getting higher!

In brief, how did you fund the business initially, and what are your annual revenues?
We funded the business with our own savings, just over $100,000. We are privately held, so don't release our revenues.

And extra credit, when/where was your last vacation?
We went to Scotland and Spain for almost a month. My mum and dad were celebrating their 50th wedding anniversary and we took my kids (who had never been to Scotland before) to celebrate their heritage and recognize that without my parents none of this wonderful journey that we call life would have existed. It was truly a moment to shine.