Poking through 14+ years of posts I find information that’s as useful now as when it was written.

Golden Oldies is a collection of the most relevant and timeless posts during that time.

Focus on culture isn’t new, but it used to be a lot more positive. These days I see more about toxic cultures than about good ones, but what hasn’t changed is culture’s effect on performance, productivity and staffing. For better or worse, culture is still the most potent factor for any company.

Read other Golden Oldies here.

Shawn Parr, whose company works with large corporations, such as Starbucks and MTV, on innovation wrote a meaty post called Culture Eats Strategy For Lunch.

It reminded me of something I wrote back in 2008, because the title is from a quote by Dick Clark, CEO of Merk and after rereading it I decided it’s worth reposting, so here it is.

Culture Trumps All

A post on Dave Brock’s blog led me to an article at IMD’s site called “An Unpopular Corporate Culture” and, as Dave said, it’s a must read for anyone who still thinks that corporate culture is some ephemeral concept with no real impact that consultants use to sell their services.

And a double-must for those who talk about culture’s importance, but don’t walk very well when it comes to creating a great corporate culture.

For those who prefer to put their faith in plans and strategy, hear the words of Dick Clark when he took over as CEO of Merck in 2005 and was asked about his strategy for restoring the pharmaceutical company to its former glory. “His strategy, he said, was to put strategy second and focus on changing the company’s insular, academic culture.” The fact is, culture eats strategy for lunch,” Clark explained. “You can have a good strategy in place, but if you don’t have the culture and the enabling systems that allow you to successfully implement it… the culture of the organization will defeat the strategy.””

If you’re looking for a best practice corporate culture silver bullet forget it—one size doesn’t fit all.

Rex Tillerson, CEO of ExxonMobil, describes that company’s top-down command and control culture of consistency and discipline as “the source of our competitive advantage,” and has made it a priority to reinforce it.

Meanwhile, Robert Iger and Steve Jobs, in their discussions about the acquisition of Pixar by Disney, have been concerned with avoiding an Exxon style command and control culture. Jobs says that, “Most of the time that Bob and I have spent talking about this hasn’t been about economics, it’s been about preserving the Pixar culture because we all know that’s the thing that’s going to determine the success here in the long run.””

It took Lou Gerstner a decade to remake IBM.

The key lesson Gerstner learned in his time with IBM, as he later reflected, was the importance of culture.”Until I came to IBM, I probably would have told you that culture was just one among several important elements in any organization’s makeup and success—along with vision, strategy, marketing, financials, and the like… I came to see, in my time at IBM, that culture isn’t just one aspect of the game—it is the game.”

The article is more than just additional proof for my favorite hobby horse.

The analysis of the role of employee complaints/negativity play in culture and the importance of what to keep when setting out to change a culture as opposed to what to jettison will give you new insight on your own company’s culture.

In case you still doubt the power and value of culture I hope that Dick Clark, Rex Tillerson, Robert Iger, Steve Jobs and Lou Gerstner combined with the articles in Fast Company and IMD have finally changed your mind.

Flickr image credit: Bengt Nyman

Is anyone in tech truly immune from the lure of the big bucks that come from mining user data?

Not just in the short haul, but over the long haul — like 25 years?

Certainly not Google, with its management-trashed “don’t be evil.”

Or Facebook, that continually violates its users in the name of revenue.

but there is one site known to techies and the rest of us alike.

Craigslist.

Craigslist started as an email listserv in 1995, when early web enthusiasts were looking for a sense of community and DIY education. By 1996, it had become a website with job listings, apartment rentals, and personal ads. Almost as soon as the internet was becoming widely available—roughly 1 out of 5 households was online at the time—Craigslist was there to help people find roommates, look for jobs, go on blind dates, or sell used furniture.

Craigslist CEO Jim Buckmaster has been at the helm since 2001, and the founder, Craig Newmark, is still involved in the company. For years, Newmark did customer service, responding to design complaints and concerns about scams. Today, Craigslist has more monthly page visits than The New York Times or ESPN, and it’s been incredibly profitable.

Its profitability might come as a surprise to some. Many of those I spoke with thought Craigslist was a nonprofit or that it was community-run. In fact, Craigslist has always charged money for certain ads, such as job postings and classified ads. (By siphoning revenue from classified ads, Craigslist has been one reason newspapers across the country have struggled to stay in business.)

More recently, Craigslist has started charging for other kinds of ads, such as real estate listings from firms and car ads from dealers.

But regular users don’t have to pay a fee. The site doesn’t display banner ads, nor does it sell user data to third parties.

Way back when Craigslist was a startup I met Craig and found him to be a very nice, unassuming guy and it seems  he’s still the same, as reflected in a 20017 interview.

“Basically I just decided on a different business model in ’99, nothing altruistic,” he said. “While Silicon Valley VCs and bankers were telling me I should become a billionaire, I decided no one needs to be a billionaire — you should know when enough is enough. So I decided on a minimal business model, and that’s worked out pretty well. This means I can give away tremendous amounts of money to the nonprofits I believe in … I wish I had charisma, hair, and a better sense of humor,” he added in a completely deadpan voice. “I think I could be far more effective.”

Current entrepreneurs seem more focused on charisma, hair, and reaching unicorn status via multiple rounds of investment. A sense of humor is considered optional.

Image credit: Cambodia4kids.org Beth Kanter

Poking through 14+ years of posts I find information that’s as useful now as when it was written.

Golden Oldies is a collection of the most relevant and timeless posts during that time.

I used to have a feature called Quotable Quotes and may bring it back. Bertrand Russell, 1872 – 1970,  (use the link if you aren’t familiar with him; it is a good use of your time) spoke on many subjects. Considering current societal upheaval and forces at work today, it seems like a good time to review his comments on fear. I find them extremely timely, probably even more so than when they were written.

Read other Golden Oldies here.

Most of us live with one kind of fear or another, although few of us admit it. Fear often masquerades as something else—envy, arrogance, failure, success—to name just a few. Bertrand Russell provides interesting commentary on fear in it’s many guises.

“Fear makes man unwise in the three great departments of human conduct: his dealings with nature, his dealings with other men, and his dealings with himself.” This explains much of what’s going on in the world today.

Fear not only paralyzes us it builds in our minds until it’s many times its original size; as Russell points out, “Until you have admitted your own fears to yourself, and have guarded yourself by a difficult effort of will against their myth-making power, you cannot hope to think truly about many matters of great importance . . .” I would add that ‘of great importance’ doesn’t necessarily mean global in scope or world-changing—unless you mean your own little corner of the world.

These days superstition is rampant and cruelty—physical, mental and spiritual—abounds in epic proportions at every level of human interaction. It’s worse now than ever before because technology has shrunk the world, given a louder voice to these evils and muted what wisdom is available. Fear is the main source of superstition, and one of the main sources of cruelty. To conquer fear is the beginning of wisdom . . .

Envy is another form of fear; fear that someone has more, but as Russell points out there is always someone with more… “Envy consists in seeing things never in themselves, but only in their relations. If you desire glory, you may envy Napoleon, but Napoleon envied Caesar, Caesar envied Alexander, and Alexander, I daresay, envied Hercules, who never existed.”

Fear feeds off fear and can be overwhelming. Fear of technology is usually well masked, but it can be substantially diluted if you remember that technology is finite, while humans deal in the infinite. There will still be things that machines cannot do. They will not produce great art or great literature or great philosophy; they will not be able to discover the secret springs of happiness in the human heart; they will know nothing of love and friendship.”

Fear drives ideology, ideology preempts thought and not thinking kills or, as Russell said, “Many people would sooner die than think; in fact, they do so.”

Russell didn’t name it, but he had a wonderful take on ideology, “The whole problem with the world is that fools and fanatics are always so certain of themselves, but wiser people so full of doubts.”

Image credit: Wikipedia

While success is most people’s goal, how they define it varies widely.

A couple of weeks ago Clay Christensen, who pioneered disruption theory and wrote The Innovator’s Dilemma, died.

KG sent me an a16z editorial about his effect on business, but I think the 2010 HBR interview called How Will You Measure Your Life? is much better when it comes to success.

Why?

Because it lays out his business principles tweaked so a person could build a personal culture that would assure happiness.

When the members of the [HBS] class of 2010 entered business school, the economy was strong and their post-graduation ambitions could be limitless. Just a few weeks later, the economy went into a tailspin. They’ve spent the past two years recalibrating their worldview and their definition of success.

In the spring, Harvard Business School’s graduating class asked HBS professor Clay Christensen to address them—but not on how to apply his principles and thinking to their post-HBS careers. The students wanted to know how to apply them to their personal lives.

The students had a front row seat to watch the economy go from hot to frigid, which taught them that careers weren’t everything.

On the last day of class, I ask my students to turn those theoretical lenses on themselves, to find cogent answers to three questions: First, how can I be sure that I’ll be happy in my career? Second, how can I be sure that my relationships with my spouse and my family become an enduring source of happiness? Third, how can I be sure I’ll stay out of jail? Though the last question sounds lighthearted, it’s not. Two of the 32 people in my Rhodes scholar class spent time in jail. Jeff Skilling of Enron fame was a classmate of mine at HBS. These were good guys—but something in their lives sent them off in the wrong direction.

Three simple questions, but three that few people, let alone MBA students, especially those at Harvard, focus on.

But what kind of life is it, if you are unhappy or have bad relationships with your family or cross the line, when with a little effort and planning you can avoid all three?

While Clay Christensen isn’t a silver life bullet, his thinking and approach come close.

Image credit: By World Economic Forum from Cologny, Switzerland – Leading Through Adversity: Clayton ChristensenUploaded by January, CC BY-SA 2.0

A Friday series exploring Startups and the people who make them go. Read all If the Shoe Fits posts here.

I love the story of startup Be My Eyes, because it highlights an entrepreneur who really is changing the world and illustrates the good that comes from a lack of funds.

I read the story in the Lean Startup blog and thought it worth sharing.

“Be My Eyes is just a simple app that basically makes a video call between two persons (…) we have volunteers who sign up and say ‘Yes, I am available to help a blind person see something.’”

The volunteer presence adds an extra layer of independence to the visually impaired person’s life, rather than worrying that they are interrupting or imposing on someone.

All the volunteers do it look at their screen and tell the caller what they see, such as the ingredients in a recipe.

Be My Eyes boasts a global network of volunteers speaking a variety of languages and is always recruiting more.

The great thing is the volunteers can respond from wherever they are and the calls only take a few minutes. If they can’t take the call, no problem, since the system calls multiple people for each request.

Be My Eyes has a number of programs to encourage company involvement, including a way to provide product support to vision impaired/blind customers. This is a great opportunity for startups that want to give back, but have neither time or money to donate.

As to the advantage of minimal funding, it kept them from the typical tech error of over-engineering and forced them to keep the app very simple. Good move.

They had an overly long list of features they wanted to put into the app in the beginning, but which lack of funds prevented. (…)  Be My Eyes hasn’t had many requests for all the “brilliant ideas” they had in the beginning. “So maybe it was a really good thing we didn’t overload the app.”

Be it as an individual or involving your family, friends or company be someone’s eyes, you’ll be amazed at the difference doing so will make in your life, as well as theirs.

Image credit: HikingArtist

A Friday series exploring Startups and the people who make them go. Read all If the Shoe Fits posts here.

Neither market cap nor valuation are cause for celebration.

Both are as ephemeral as morning fog.

Ask Microsoft CEO Satya Nadella his reaction when Microsoft became the most valuable company in the world for a few months last fall.

“I’m not one of those guys who says, ‘let’s celebrate some market cap measure.’ That’s just not stable.”

What does interest him?

The Microsoft-generated ecosystem.

“Our business model is about creating more surplus outside us. We will only be long-term success when the people are making more money around us,” he said.

This dovetails with what Bill Gates also believes, i.e., a company’s success is defined when the total value of the ecosystem around it is more valuable than the company that created it.

That ecosystem seems non-existent to the majority of founders of gig economy businesses, dating apps, social media, etc.

Or perhaps it’s just those with venture funding who are focused on growth at all costs.

That said, this post is dedicated to the founders who focus on building sustainable businesses/ecosystems.

As opposed to the fools who chase investment in lieu of revenue, celebrate valuation based on their last round of funding, and don’t care about ecosystem beyond its PR value.

Image credit: HikingArtist

I, and dozens of others, have written on the negative and downright destructive effects from social media’s FOMO.

However, I hadn’t given any thought to the idea that it had invaded the workplace, too.

As if email [at work] wasn’t bad enough at cultivating FOMO, we now have a new generation of real-time tools like chat to stoke it. Yet another thing that asks for your continuous partial attention all day on the premise that you can’t miss out.

FOMO is just as detrimental at work as it is personally. It distracts, interrupts conversations, and destroys focus.

Basecamp noticed and not only created a solution, but also gave it a catchy, sharable name.

People should be missing out! Most people should miss out on most things most of the time. That’s what we try to encourage at my company, Basecamp. JOMO! The joy of missing out.

It’s JOMO that lets you turn off the firehose of information and chatter and interruptions to actually get the right shit done. It’s JOMO that lets you catch up on what happened today as a single summary email tomorrow morning rather than with a drip-drip-drip feed throughout the day.

Once again, Basecamp hits a homerun. (Two previous posts, here and here, talk about others.)

If you’re impressed with Basecamp’s ideas, you’ll not only enjoy It Doesn’t Have to Be Crazy at Work, by Basecamp co-founders Jason Fried and David Heinemeier Hansson, you’ll also find solutions you can use.

Image credit: Basecamp

If you follow Ryan’s Journal on Thursday you know that he’s been interviewing for a new position. (If you aren’t familiar with Ryan you can learn more about him here.) Last week he wrote about red flags and deciding factors.

As a Millennial and former Marine Ryan, is extremely sensitive to culture and that’s been number one on his list of wants, including challenge, learning, growing, making a difference, respect, team, etc., and all the normal stuff, such as compensation and benefits.

He has been interviewing for more than a year, both local and remote positions, and finally found it all in a local company called Spatial Networks.

The company builds geospatial intelligence products. Founded in 2000, it has survived the dot com bust and the 2008 financial meltdown, which says a lot about its management.

When Ryan called he was so excited about the company he was practically bouncing. He raved about the people, the culture and said the perks were unbelievable.

What constitutes “unbelievable” to a young married 30-something with 3.5 kids and a mortgage?

Benefits & Perks

Spatial Networks, Inc. continually invests in its employees, and nowhere is this investment more evident than in our employee benefits, development and enrichment program offerings.

Financial security

In addition to competitive pay and performance-based incentives, you’ll receive 100% company 401(k) match up to the IRS maximum (and are fully vested at eligibility), company stock options, and robust life insurance coverage (3x your annual salary).

Complete health

Spatial Networks covers 100% of medical, dental, and vision plan premiums for you and your family. We also offer short- and long-term disability, an Employee Assistance Program (EAP), 24/7 nurse line with care coordination and mental health programs, and on-site gym membership.

Life balance

We love what we do, but work isn’t everything. With flexible work hours, maternity/parental leave, and generous, tiered paid time off (PTO) and flex-time, you can devote time to the things (and people) you cherish most.

Continuous growth

At Spatial Networks, you’ll learn from some of the most talented, passionate software developers and geographers around and receive professional development and training (plus internal career growth/acceleration).

Happy workdays

Enjoy a fast-paced, fun and collaborative environment, a visible and responsive HR department, company-paid parking in downtown St. Petersburg, and all the fresh-ground coffee you can drink!

This is from a follow-up email Ryan sent.

Very profitable and they are growing. Plus the benefits are insane. I receive 4 weeks vacation to start. 100% payout of all medical premiums for me and my family (I was paying 20K annually before) and I also receive 100% match on my 401K up to the max which is $18,500 per year.

(Note Ryan’s compensation jumped $20K just based on the medical premiums he no longer pays.)

I call these adult perks, plenty of coffee, but no food. Unlike so many perks at companies such as Google and Facebook, none of these are designed to encourage people to stay at the office or build their lives around work.

Image credit: Spatial Networks

Even if your sights are set on a goal far beyond $85 million in revenue (not valuation), you would be wise to take a lesson from Michael Kiolbassa, whose product you’ve probably eaten more than once.

Grandson of the founder, Kiolbassa wasn’t prone to delegating. He did listen to advice from a wide range of pundits and was prone to “management by bestseller.”

Until, that is, the company was blindsided with a giant cost increase that should have been forecasted, but wasn’t.

For years, he saw his role as the solver of all problems. That’s what he’d learned from his dad, who would even fix the machinery. “I’m the production guy,” Michael explained to a consultant in 2010. “I’m the sales guy. I’m the culture guy. I’m the guy.”

“Is it working for you?” the consultant asked.

“No, it’s not.”

That’s when things changed and he started delegating.

Sales soared as did production, but not in concert, so the losses almost killed the company.

That’s when Kiolbassa was introduced to open-book management, which he embraced, with a quarterly bonus incentive for everybody, and everything changed.

“I got everybody together, shared the financials in detail and showed them just how much money had been lost,” says Michael. “They had no idea.” (…) Posted in Spanish as well as English, the financial displays let everyone track whether the company is likely to pay a quarterly profit-sharing bonus

And that’s the key that most CEOs don’t get.

There is a wealth of information at every level within every organization, not just from those with fancy titles, if you are willing to listen.

“Suddenly,” says Michael Johnson, a Kiolbassa vice president, “you had guys on the shipping dock looking at invoices and saying, I know we can get jalapenos cheaper.”

Proof, as is said, is in the pudding, or, in this case, the financials.

In fact, they turned the first quarter of 2018 into the company’s most profitable ever, with revenue growth of 30% and a profit margin of 6%.

Think what open-book management could do for your company — if you have the guts to implement it.

Image credit: Kiolbassa Smoked Meats

Empowering people is something every good boss, from CEO to team leader, wants to do.

Sometimes that can be accomplished by making a small change that turns out to have a giant impact, as GM Chairman/CEO Mary Barra found when she became vice president of global human resources in 2009.

Barra wanted to change GM’s 10-page dress code to a simple, two-word one, ‘dress appropriately.’

Her staff didn’t agree.

But the HR department ironically posed my first hurdle. They started arguing with me, saying, it can be ‘dress appropriately’ on the surface, but in the employee manual it needs to be a lot more detailed. They put in specifics, like, ‘Don’t wear T-shirts that say inappropriate things, or statements that could be misinterpreted.’”

The kind of detailed instructions the hr staff wanted to add may not seem like that big a deal, but the underlying implication is that the company didn’t trust them. Remove the details and you have a radically different result.

“But if you let people own policies themselves—especially at the first level of people supervision—it helps develop them. It was an eye-opening experience, but I now know that these small little things changed our culture powerfully. They weren’t the only factor, but they contributed significantly.” (…)  By simply stating “dress appropriately,” Barra does exactly what she asks of other leaders: She avoids assumptions, instead choosing to trust her employees’ judgment—and has found the experience remarkably liberating.

Not to mention successful.

If that attitude works in a company with 180,000 employees it will probably work for you.

Image credit: Wikipedia