Quotable Leadership and Management Advice from Kleiner Perkins Partner, Randy Komisar

"One of the most important lessons I learned is that people are not fungible. I've had bosses who said, "We're not going to pay well, incent, or develop our people because there's always somebody to take their place." The problem with that logic is, while it might be statistically true, it fundamentally indicates a culture that is not going to invest in anybody. Nobody is going to become very effective.

The other piece of leadership that somebody tried to teach me, which I dismissed, is manage by the numbers--if you manage by the numbers everything else takes care of itself. Just get people to execute, measure, hold people accountable, and that's enough. That's not enough. Yes, it is important to instill accountability in organization, it's important to have good metrics, to discipline the process, reward people, and withdraw those rewards when they're not being effective. But that won't get you greatness.

When I am most successful, it's because the people around me have made me successful. It comes down to the fact that success is created by a group of people and not by any single individual. How do you get people to come together around a goal and objective and be great? It's establishing a sense of common purpose. Greatness doesn't come from a tactical sense of execution. Greatness comes having a vision that goes beyond yourself and even beyond the organization.

read the full article at fastcompany.com

 

Filed under  //   2010   advice   ceo   jason lombard   july   leadership   management   small business  

The Top Idea in Your Mind - by Paul Graham

Excerpt from paulgraham.com 
July 2010

I realized recently that what one thinks about in the shower in the morning is more important than I'd thought. I knew it was a good time to have ideas. Now I'd go further: now I'd say it's hard to do a really good job on anything you don't think about in the shower.

Everyone who's worked on difficult problems is probably familiar with the phenomenon of working hard to figure something out, failing, and then suddenly seeing the answer a bit later while doing something else. There's a kind of thinking you do without trying to. I'm increasingly convinced this type of thinking is not merely helpful in solving hard problems, but necessary. The tricky part is, you can only control it indirectly. [1]

I think most people have one top idea in their mind at any given time. That's the idea their thoughts will drift toward when they're allowed to drift freely. And this idea will thus tend to get all the benefit of that type of thinking, while others are starved of it. Which means it's a disaster to let the wrong idea become the top one in your mind.

What made this clear to me was having an idea I didn't want as the top one in my mind for two long stretches.

I'd noticed startups got way less done when they started raising money, but it was not till we ourselves raised money that I understood why. The problem is not the actual time it takes to meet with investors. The problem is that once you start raising money, raising money becomes the top idea in your mind. That becomes what you think about when you take a shower in the morning. And that means other questions aren't.

I'd hated raising money when I was running Viaweb, but I'd forgotten why I hated it so much. When we raised money for Y Combinator, I remembered. Money matters are particularly likely to become the top idea in your mind. The reason is that they have to be. It's hard to get money. It's not the sort of thing that happens by default. It's not going to happen unless you let it become the thing you think about in the shower. And then you'll make little progress on anything else you'd rather be working on. (I hear similar complaints from friends who are professors.[2] (Professors nowadays seem to have become professional fundraisers who do a little research on the side. It may be time to fix that.)

The reason this struck me so forcibly is that for most of the preceding 10 years I'd been able to think about what I wanted. So the contrast when I couldn't was sharp. But I don't think this problem is unique to me, because just about every startup I've seen grinds to a halt when they start raising money—or talking to acquirers.

You can't directly control where your thoughts drift. If you're controlling them, they're not drifting. But you can control them indirectly, by controlling what situations you let yourself get into. That has been the lesson for me: be careful what you let become critical to you. Try to get yourself into situations where the most urgent problems are ones you want think about.

You don't have complete control, of course. An emergency could push other thoughts out of your head. But barring emergencies you have a good deal of indirect control over what becomes the top idea in your mind.

I've found there are two types of thoughts especially worth avoiding—thoughts like the Nile Perch in the way they push out more interesting ideas. One I've already mentioned: thoughts about money. Getting money is almost by definition an attention sink. The other is disputes. These too are engaging in the wrong way: they have the same velcro-like shape as genuinely interesting ideas, but without the substance. So avoid disputes if you want to get real work done. [3]

Even Newton fell into this trap. After publishing his theory of colors in 1672 he found himself distracted by disputes for years, finally concluding that the only solution was to stop publishing:

I see I have made myself a slave to Philosophy, but if I get free of Mr Linus's business I will resolutely bid adieu to it eternally, excepting what I do for my private satisfaction or leave to come out after me. For I see a man must either resolve to put out nothing new or become a slave to defend it. [4]

Linus and his students at Liege were among the more tenacious critics. Newton's biographer Westfall seems to feel he was overreacting:

Recall that at the time he wrote, Newton's "slavery" consisted of five replies to Liege, totaling fourteen printed pages, over the course of a year.

I'm more sympathetic to Newton. The problem was not the 14 pages, but the pain of having this stupid controversy constantly reintroduced as the top idea in a mind that wanted so eagerly to think about other things.

Turning the other cheek turns out to have selfish advantages. Someone who does you an injury hurts you twice: first by the injury itself, and second by taking up your time afterward thinking about it. If you learn to ignore injuries you can at least avoid the second half. I've found I can to some extent avoid thinking about nasty things people have done to me by telling myself: this doesn't deserve space in my head. I'm always delighted to find I've forgotten the details of disputes, because that means I hadn't been thinking about them. My wife thinks I'm more forgiving than she is, but my motives are purely selfish.

I suspect a lot of people aren't sure what's the top idea in their mind at any given time. I'm often mistaken about it. I tend to think it's the idea I'd want to be the top one, rather than the one that is. But it's easy to figure this out: just take a shower. What topic do your thoughts keep returning to? If it's not what you want to be thinking about, you may want to change something.

Notes

  • [1] No doubt there are already names for this type of thinking, but I call it "ambient thought."
  • [2] This was made particularly clear in our case, because neither of the funds we raised was difficult, and yet in both cases the process dragged on for months. Moving large amounts of money around is never something people treat casually. The attention required increases with the amount—maybe not linearly, but definitely monotonically.
  • [3] Corollary: Avoid becoming an administrator, or your job will consist of dealing with money and disputes.
  • [4] Letter to Oldenburg, quoted in Westfall, Richard, Life of Isaac Newton, p. 107.

Thanks to Sam Altman, Patrick Collison, Jessica Livingston, and Robert Morris for reading drafts of this.

 

Filed under  //   2010   development   ideas   investment   jason lombard   july   money   venture capital  

5 Easy Web Tools Your Small Business Should be Using

"If you don't do ______, then you're going to be out of business by this time next year."

This, or something like it, is what many businesses are told by a variety of companies peddling services every day. I've heard it from the yellow pages salesman, an SEO (Search Engine Optimization) company, a direct-mail service—the list goes on and on. When I was in retail many years ago, nary a day went by when there wasn't someone telling us that we were doing it wrong, or weren't doing enough.

Unfortunately, as I sit here many years wiser—there is an ironic (for me, at least) ring of truth to some of it. Many businesses aren't doing enough. Sometimes it's due to lack of time or lack of resources—and believe me, I certainly get that. But I don't want it to be for lack of awareness. As such, I'm sharing several web tools below—some of which are free—that EVERY small business should be using to maximize their advantage in today's electronic marketplace.

  1. Claim Your Google Places Listing - Visit http://places.google.com or do a search for your business on http://maps.google.com. At the top of the page directly below the search box you'll see a link titled, "Business Owner?". Click that button and you'll claim your business in Google's version of the yellow pages. Select the button to edit your information, and click continue. This is where the magic begins. Check through the address and contact information listed to be sure that it's correct, then add your business website URL (if you have one), add a brief description of the company and validate the categories in which you'd like your business to appear (you get to pick up to 5 categories). Lastly, verify the hours that you're open, the payment types that you accept and the brands that you carry (if applicable). Hit the "Submit" button at the bottom. Lastly, Google will use an automated service to call the phone number listed for your business and provide a PIN number to verify the information. Once you get the call, return to Google Places, enter the PIN number and verify the listing. Now you're done! In less than five minutes, you now have a verified, accurate, searchable presence on the web!
  2. Use a Custom, Domain-Based Email Address - This is an important one, as the image that you present reflects on the brand. If you own a company named John's Widgets, but you're using an email address that reads rockinginthefreeworld@hotmail.com, it doesn't exactly reinforce your widget company when you publish your contact information or send your customers an email. Instead, consider buying the a custom domain (usually around $10-15) for your business and create a mail record for the domain. While it isn't quite as straight forward as claiming your Google Places listing, it's not hard, and there are a number of professionals that are willing to help you do it for less than you'd probably think (Ideavise offers this service). As a customer, getting an email from john@johnswidgets.com is far more professional than a seemingly random Hotmail address. It tells the customer that you're serious about your business and adds a little credibility as well.
  3. Set up Google Alerts - Google's search spiders crawl the web constantly, looking for new content to add to the myriads of data that is scoured during a Google search inquiry. And, if you know how, you can put those spiders to work for you. Go to http://www.google.com/alerts. If you have a gMail email address (if you don't, create one now, it's free and will be required to use the service) you can enter a name or phrase and have Google send you alerts any time a new instance of that name or phrase is found on the web. To revisit our friend John and his widget shop, if he entered John's Widgets into the search terms, Google would send him a notification any time his name appears in a new listing on the web. This includes social networking sites like Twitter as well, and allows John to keep up with what people are saying about his business or maybe do a little damage control if misinformation is being spread.
  4. Start Using Social Networking; Facebook, Twitter, Yelp - While they're important, I've put these lower on the list for a reason. They have many benefits, increased web presence, interacting with your customers where they are, getting involved with and staying abreast of news and changes within your industry. BUT, like any marketing avenue, it requires time and effort. It's called SOCIAL networking for a reason, and if you don't have the time to spend reading and interacting, you may be better off avoiding these avenues all together. I'd propose that a Facebook account with zero new posts for the last two years is more damaging than not having one at all. Not having an account gives the impression that you may just not have found Facebook yet, having a dormant account leaves one to wonder if you're still in business. A lot of people don't understand the purpose of Twitter. But whether you understand the purpose for it or not, Twitter has a great search feature and is great for keeping up with trends. We have our blog set up to autopost to our Twitter account as well, and have attracted followers based on what we post here. Lastly, Yelp is similar to Google Places in that it is a local business "yellow pages" type listing, but adds in the functionality of allowing users to rank and discuss the service that they've received. Despite some of the controversy surrounding Yelp over the past few years, it's still my go-to site for restaurant recommendations (among other things) when I'm traveling in an area that I don't know very well. I've found some REALLY good restaurants via Yelp that I never would have found on my own. Bonus: as a registered business owner, Yelp allows you to review and respond to customers publicly and privately using their service. This can be a helpful way to add to conversations with your patrons or correct misinformation about your products or services.
  5. Create an Inexpensive "Business-Card" Style Website - I've sat across the table from clients who's eyes get as big as dinner plates when they hear about the myriad of options involved in setting up a website. It can be an overwhelming process, but it doesn't have to be. If you're short on free time or finances (or both), sometimes a simple "business-card" style website will get you started. Let me be clear on this. Your clients ARE searching for you on the web. If they don't find anything, then they're probably moving on to the next company. If you've already taken the plunge in step #2 above and purchased a custom URL for your business email, then you're already part of the way there. When I refer to a "business-card" website, I'm talking about a single page website that has nothing more than basic information about your company name, your logo and how to contact you. For as little as a few hundred dollars, you can have a searchable presence on the web and a URL to add to your Google Places and Yelp listings. Is this ideal? No. This site isn't going to detail your products or services, tell you customers about your company or relay any glowing testimonials from past clients. BUT, if you're on a budget and short on time, it's a great place to start and it's better than nothing.

These are the recommendations that we use as a starting point with all of our new clients. I hope that you've found this list useful. Do you have questions about the information above. Are you unsure of where to start? As a full-service creative agency, we can help. And there's never a cost to ask questions. Drop us a line at info@ideavise.com or call (719) 355-3579.

Thanks for reading!

—Jason @ Ideavise

Filed under  //   2010   facebook   google   jason lombard   july   list   marketing   small business   social media   twitter   website   yelp  

More Businesses Finding Customers on Social Sites - eMarketer

Smaller companies most successful at social acquisition.

While many marketers struggle with how to measure social media marketing return on investment, some businesses are finding at least one hard metric where their efforts have paid off—customer acquisition.

According to a February–March 2010 survey from office services firm Regus, smaller companies see the most success, with nearly half of small businesses around the world having acquired a customer through social networks. Large companies were less successful, but more than a quarter had seen social success through customer acquisition. This was despite large companies being more likely to devote budgets to social marketing.

“While the most popular function of these networks remains that of keeping in touch with contacts, businesses are also successfully acquiring new customers, supporting their retention efforts and interacting with customer groups,” said Sande Golgart, vice president at Regus, in a statement. “Organizations who have not yet ventured into the world of social networking may be missing out on sizeable business opportunities.”

In January 2010, Hubspot found that more than 40% of companies using social media marketing had acquired a customer through the channel. The Regus survey, which was not limited to businesses using social marketing, suggests that number may be slowly climbing.

via emarketer.com

Filed under  //   2010   jason lombard   july   marketing   small business   social media