From time to time I get tasked with interviews and presentations that the CEO just can't do. Today I talked with a really sharp group of MBA students from Fuqua. I have a high degree of respect for MBA students and graduates. Usually, I'd make a snide remark about golf handicaps, envious alcohol tolerance or another attractive aspect of a two-year work hiatus. But not today.
The presentation was pre-determined. I went through our standard corporate deck. I did my best to mimic Jangl CEO Michael Cerda, since the deck is really his. But I built a short series of additional slides because I knew these guys were going to ask me about my career, my experience. And, because these "candidates" are strongly considering management positions in venture backed startups, rather than try to imitate a Calacanis post, I thought I'd go right into a subjective commentary on winning, losing and failing.
My points were really simple: First, winners aren't so much defined by the ROI multiple delivered to the investor or the frequency with which one's companies liquidate. Winning is more about providing an acceptable return (2x- 3x the last valuation) that nudges the fund's rating higher than average AND making sure no blood gets spilled in the process. This is how positive external perceptions are created and cultivated by everyone involved in the company. This is the "win" that all of a startups participants agree upon. I've got a few of these in my background, but I wish I had more.
Next, I chose to distinguish losing from failing. Losing is valuable in startup life, and it happens to everyone. Market dynamics like recession and overrated technology and infrastructure are very hard to anticipate, much less avoid. And, sometimes startup defenses like IP and exclusive partnerships are simply overcome by the competition. As is true for much of my life, baseball is the analogy here.
In baseball if you make an out 60% of your at bats, you've mastered the game. In both baseball and startups, losing isn't a thing to be ashamed of. However, failure is never good. Failure in baseball is easy to identify -- mental errors, cheating, fighting, etc. In startups, the universal cause of failure is the fracturing of trust. When trust is injured, fear, uncertainty and doubt begin to undermine a startup's single advantage over public companies; the nimbleness and work ethos of a team.
I asked the group to consider that failure in startups is defined when blood is spilled, and the company does something to erode or degrade the collective ethic. Blood spilled meaning that someone's reputation was impugned. I gave a few real world examples from my experience, not naming names, but describing huge ethical issues. It's a hard thing for people to consider when they're thinking about starting a company; specifically, that there is a collective ethic in startups for which we're all responsible. But, the group really grokked it. It was fun and stimulating, I think, for all involved.
Along with these, I prepped a few more slides: "Things to avoid" and "Survival tips". Now, I've presented these before, and they're guaranteed crowd pleasers. But I bring this up here because I have a favorite tip for MBAs: Hire and manage your next boss. I took a few moments to explain how this works, and described how Matt Oliver and Chris Breshears (Jangl marketing) are two very smart guys, probably smarter than I, and I'm always trying to learn from them as we work together.
Now, this is closely related to a favorite phrase at Microsoft in the 1990s -- "hire smart, and get out of the way". Except, I learned at Microsoft that smart people needed to be managed differently. Smart people are looking for feedback. Confident people want you to get out of the way. Sometimes smart people aren't confident, and vice-versa. And, sometimes, smart confident people don't need to be managed at all. Such as it was for one Richard Brewer-Hay.
In 1997, I was a lowly service producer and PR underling at WebTV, which was about to be acquired by Microsoft for nearly $500M. At WebTV during that time, almost everyone had been "vouched for" by one of the founders. Perlman vouched for me, the marketing team grabbed me out of service production. But this skinny English kid from Yorkshire showed up one day as Phil Goldman's jack of all trades, and, because I was curious how he got into the party, I started to get to know this guy. Most intriguing to all was that Phil (RIP buddy), a co founder, would let this kid do anything for him. Even so, the kid was really under-utilized.
Richard was so smart and interesting that after knowing him for only a month, I started a conspiracy with others to get him out of software and into marketing, where his BA in English could be put to good use. Now, what happened after that is really the stuff of a hilarious book -- and Richard has even hinted at writing it. But to summarize, we've been friends ever since, and we've worked together again and again, most recently at PodShow, where I asked him to take on an untenable position as heading talent acquisition and talent relations. Now, THAT was a difficult job, and I marveled at his efforts there. After a year, Richard began managing content programming schedules. And, after I left PodShow, he took on key parts of my marketing responsibilities. Richard is a work horse, and he really cares about everyone he befriends, and he is always trying to do the right thing. He is a true professional.
I bring this up because this week, Richard was thrust into a new spotlight when eBay decided to make him their new corporate blogger. It's an impressive challenge. Be high-profile, but keep it real. Be witty, honest and balanced, and connect with different audiences. Be the conduit between a set of complicated and savvy personalities in a vocal community focused on one company. Be the new guy in a situation with a lot of history. Most men would look at the challenge and think, "this is thankless". But, Richard has some uncanny people skills -- skills that have served him well. The work at PodShow will serve him well. And, who knows, I may just end up working for this guy in the future... working for another poor bastard that once worked for me.
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