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

In the right frame of MAPping Company Success it says, “Have a quick question or just want to chat?” along with both email and phone number.

A few weeks ago a “John,” a founder, called me to see if I had any idea why his turnover was so high.  

In response to my questions he described his company’s culture, management style, product, etc.

I told him that assuming what he said was what was actually happening then something else was going on.

Since we are several thousand miles apart, we came up with the idea of using a stationary camcorder to tape the interactions; a “set it and forget it” approach to capture the norm and not performances.

A few days later he sent me a link to see the results.

I choked at the length, but it didn’t take that long to find what the likely problem was.

To see if my instinct was correct, I watched the entire nine hours on fast forward.

What I saw was that, almost without exception, during every interaction John had, whether with programmers or senior staff, he interrupted them to take calls or respond to texts.

We discussed the ramifications and effects of the constant interruptions and I asked him how he would feel if they had acted the same way.

He said it had happened to him and he usually felt annoyed, offended or both.

So I asked why they would feel any different.

John said that also explained why one senior developer said he preferred to work where he was shown some respect.

John had chalked it up to the developer’s age and that he couldn’t handle the casual atmosphere, but thinking back the guy had had a good relationship and no problems with the team.

I suggested that instead of saying anything he just change, i.e., pay attention and not interrupt, since actions speak louder than words.

I also sent him this image as a constant reminder.

John went further than changing; he called the most recent three who had left, apologized and said he would like them to come back.

One had already accepted a job, but the other two decided to give it another shot.

They both said that his candidness, honesty in recognizing the problem and sincere apology made it likely he would follow through.

Image credits: HikingArtist; via Imgfave

A LinkedIn post reminded me of something we all too often forget.

I’ve learned that the number one rule in sales is everybody wants what everybody wants and nobody wants what nobody wants. When you tell a buyer they can’t have something, they always want it more, but let that same customer know there’s plenty to go around and they’ll always go home to think about it.

It may be in the back of our minds, but we dance too much.

We spend time finding the fanciest or trendiest words to describe it.

Worse, we use ‘in’ words and industry-specific terms.

If the customer isn’t familiar with the language we choose she will spend her time puzzling out the meaning instead of buying.

Or she’ll just leave for a friendlier source.

Don’t get me wrong. Great stories that display the sexiness/romance/usefulness/value of your product or service are good—in their proper place.

But nothing projects authenticity, builds trust and creates urgency as perfectly as true clarity.

Flickr image credit: Alpha

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

Yet again Sarah Milstein and her crew at Lean Startup have knocked it out of the ball park.  The first time I experienced it was at their Lean Startup Conference last year.  With the new Office Optional Conference, they have tapped into a motherload of issues that affect the Future of Knowledge Work and Workers.  Companies both large and small are struggling with attracting, growing, retaining and managing distributed teams, just like an increasing portion of the workforce is enticed by the ability to work from home (or anywhere).

I attended with Galina Landes who leads our engineering team, and one of the great experiences was to see how differently she and I experienced distributed work and strategies for improving what we’re doing.   But then, engineers have always had a more logical approach to most things than those of us working in management or other functions in a company.  Combining our perspectives and discussing strategies was interesting and very productive.

This conference on distributed teams dealt with collaboration, communication and the tools necessary for achieving goals as a team and creating a positive work environment.  I’ve personally struggled with this in my previous company and now as we are building a new one.   Our small team is fully distributed, although several of us are in the San Francisco Bay Area and can meet face to face when necessary.  But it’s still challenging to build a company culture, have good communication and trust without which we can’t achieve our strategic goals. 

Personally, I got a lot of ideas for tools and strategies to enhance our collaboration and communication.  In addition, many of the speakers spoke about the need to create an environment where “water cooler talk” and informal communication (and interruptions) was acceptable.  Just like in a normal office environment.  After all, we human beings are (mostly) social creatures and need to create bonds and trust with those with whom we work to achieve goals.

It was a pleasure to see that so many people from large organizations such as GE to small startups like EMANIO, and everything in-between, dealing with the issues around an increasingly distributed workforce.  In interacting with fellow participants, it was clear that we were all neophytes in the area and even those organizations that successfully had deployed a distributed model were still learning and adjusting their strategies and methods.  Office Optional was a great learning experience and I’d exhort anyone dealing with these issues to participate next time they put it on.  It was invaluable for us.

My only negative feedback would be that toward the latter part, the speakers became a bit repetitive.  However, for a first conference small issues like this should be expected and judging from my prior experience with the Lean Startup team the next one will excellent.

The day ended with a conversation between Eric Ries, who wrote The Lean Startup, and Stanford’s Bob Sutton, who penned the No Asshole Rule, and more recently, Scaling Up Excellence.  Though the conference would have been very good on its own, this was the crowning part of my experience.  Professor Sutton is an engaged and charismatic speaker with deep knowledge of how organizations work.  Excellence is what we’re all striving for and he provided a captivating roadmap for how to achieve it.

Image credit: HikingArtist

According to a blue ribbon group at Wharton, the secret of customer loyalty is in connecting on a deep level.

 “If you have been authentic, consumers will love you and share your brand” — Vanessa Rosado, global director of digital capabilities, AB InBev

Or you can be totally inauthentic, if you prefer, because many people won’t even notice.

Retweets. Likes. Favorites. Comments. Upvotes. Page views. You name it; they’re for sale on websites like Swenzy, Fiverr and countless others. 

Of course, if everybody demanded authenticity, instead of accepting cyber-stats as real, we would live in a much better world.

But they don’t.

Then there are the dozens of companies that hype their “community,” but have changed their legal terms so that any interaction with the brand, from buying it to ‘liking’ it eliminates the customer’s right to sue, whether for a perceived labeling error or life-threatening problem.

And then there is Google, who very publicly changed its TOS in response to a lawsuit over its email scanning.

Our automated systems analyze your content (including emails) to provide you personally relevant product features, such as customized search results, tailored advertising, and spam and malware detection. This analysis occurs as the content is sent, received, and when it is stored.

When you upload, submit, store, send or receive content to or through our Services, you give Google (and those we work with) a worldwide license to use, host, store, reproduce, modify, create derivative works (such as those resulting from translations, adaptations or other changes we make so that your content works better with our Services), communicate, publish, publicly perform, publicly display and distribute such content.

While the wording is similar to other sites, Google’s services and their ubiquity aren’t.

It is these words, “upload, submit, store, send or receive content to or through our Services” that raise a giant red flag in my mind.

Google Docs is a service used by thousands of companies of all sizes for collaboration, both internally and with their vendors and customers.

They’re people upload and store designs, marketing plans, contracts, etc. to share and send.

According to its TOS, if Google so chooses it can share the details of those docs with anyone they please or publish them for general consumption.

Of course, everyone knows that Google does no evil and would never consider violating anyone’s privacy, but that old bottom line seems to require continual reinterpreting of both ‘evil’ and ‘privacy’.

The only thing I’m sure of is that the experience being provided by these companies are authentic.

The real question is, “authentic what?”

Flickr image credit: Dee Bamford

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

Two questions:

1. Are you working to build a culture of innovation in your startup?
2. Do you live the startup mindset of 100 hour weeks, all night hackathons, 24/7 availability and no time for vacations?

If you answered ‘yes’ to both you’re in trouble, because a yes to the second sooner or later will nullify the first.

According to Marc Barros, co-founder and former CEO of Contour, there are five actions you can take to avoid killing off your golden egg, i.e., your culture of innovation.

Here they are, with my caveats (follow the link to read the originals).

1. Offer Unlimited Vacation: while this isn’t always possible, and may not even work, making sure your people, including founders, take real vacations, which means no email, texts or emergencies. They should last a minimum of three days, but a week is much better. And if having you/them gone for that time will really crash and burn the company you have bigger problems than you realize.
2. Let Employees Work Remotely: in addition to working remotely physically whenever possible be sure to provide an environment that promotes mental remoteness. In other words, they don’t have to think/work/act like you to achieve the desired results.
3. Ditch the Meetings: make sure that those you do have are short and productive.
4. Nix Department Goals: goals at all levels—department, team, personal, should always focus on what needs to happen to achieve specific, major, annual company goals (never more than three).
5. Give Plenty of Feedback: just don’t make giving constant feedback an excuse or cover for micromanaging.

One of the biggest actions that Barros doesn’t mention, but is implicit in what he does, is trust.

If bosses don’t believe that their people really do care that the company succeeds and trusts them to make it happen then they will be unable to implement any of this.

In the comments section, Mick Thornton, who worked at Safeco Insurance (definitely large and definitely old-line), talks about the success of the team he was on.

The biggest keys to success for our team was a manager that understood broad goals saying things like “Here’s what we want the end to look like, now go figure it out. Let me know if things start to slide or go south, otherwise work how you want to meet the deliverable.”

Image credit: HikingArtist

I have exciting news for all the creep bosses out there who miss the days when they could grope and talk dirty to their subordinates, without fear of lawsuits, reprisal or losing their jobs.

All they have to do is hire an unpaid intern, because they have no legal recourse.

“…unpaid interns are not “employees” under the Civil Rights Act — and thus, they’re not protected.”

Unpaid internships may be under siege, the courts siding with the interns and social media blasting Sheryl Sanberg’s Lean In Foundation for offering one, but they’re still around and perfect for all the bosses bent in that direction.

And while I doubt any of them are reading my blog, you probably know at least one person who, if only in fantasy, fits the bill and to whom you might forward this post—not that it will change them.

More importantly, forward it to anyone you know who is considering an unpaid internship in the hope they will take a second and third look at the manager, team and company that’s offering it.

Hat tip to KG Charles-Harris for sending the harassment article.

Flickr image credit: quinn.anya

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

Based on current media reading and discussions with founders and startup employees I decided it was time to revisit a 2011 post from Matt Weeks. I might add that the ethics underlying the Startup Social Contract are applicable to any company and every manager. –Miki

“Associate yourself with men of good quality if you esteem your own reputation; for ’tis better to be alone than in bad company.” –George Washington

For early stage companies (and for all well-run private, Pre-IPO or Pre-Acquisition firms), the stock awarded to employees and the executive team is a form of “social contract” that promises them unusually high “return” for their risk, hard work, “sweat investment” and belief in the company.

The unstated social contract goes something like this:

I will initially forego a higher salary and cash compensation, in lieu of stock options that will increase in value at a faster rate than possible elsewhere, and will “return” more than the forfeited cash compensation might have, over time.

This is both an investment risk approach (“Do I believe the company’s product or service can win in the marketplace?”) and a simple ROI calculation (“Is the salary/cash compensation I forfeit going to be made-up (and then some) in a reasonable amount of time?”)

Because I am now an “owner” (“investor”) in this company (seeking to boost stock value. i.e. company value), I presumably have strong incentive to help the company thrive.

This includes being diligent and helping avoid risk, helping to find and fix problems everywhere, as well as going above and beyond my “job description” to help the company thrive and grow. I am super-diligent and respect and protect the company’s assets, reputation and product/service quality.  I treat this as “my” company.

In short, as an owner-employee (at any level), I understand that I have to “have the company’s back” and that others in the company “have my back.” We all watch-out for one another.  Our stock positions fairly and accurately reflect our contributions and risk “investments” we’ve made in this venture.

If the workers and/or the exec team come to disrespect, disbelieve or ignore this social contract, the company is lost.

Image credit: HikingArtist

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

A few days ago I was asked if it was OK to warn a startup team by email that it was doubtful funding would happen before the money ran out.

My response was ‘absolutely not!’

The final word from a variety of experts is that it is not OK to fire, lay-off, break up, ask for a divorce, ground kids or any similar action by email, text or even by phone.

These are all subjects that must be done face-to-face for a variety of reasons, but all falling under one of the falling categories,

• Respect
• Trust
• Authenticity
• Transparency
• Fairness

The list goes on, but I’m sure you get it.

That said, I thought I’d repost a slightly edited how-to for dealing with bad news that is as applicable today as it was when hard-copy memos, wires, carrier pigeons and smoke signals were the normal modes of communication.

Bosses know when they’re in trouble (duh), but they still seem to think that their people don’t know the facts (double duh).

Too many bosses, from startups through Fortune 100 and everything in-between, clamp down, say nothing, run scared, freeze, bluster, or some combination thereof and do it by email and/or text.

The result is management by rumor, which once started never ends.

The way to deal with bad news is directly, openly and honestly.

Even when the subject is no funding or lay-offs this axiom applies; in fact, it’s the only approach that gives your company or your reputation a chance of emerging intact.

Here are six basics to keep uppermost in your mind—whether they are comfortable or not.

1. Bad news must be communicated in person—just like good news.
2. Employees aren’t dumb—they know something bad is happening—and if they’re not explicitly told what it is, rumors will make any difficulty a catastrophe and a catastrophe a death knell.
3. Management must be explicit about the ultimate potential consequences. In a situation that’s unfolding, such as a funding or economic crisis, when no one knows the ultimate outcome or can predict when it will change, frequent updates are effective.
4. Everyone hates uncertainty, which is all you may have to offer, so analyzing and then explaining the worst case outcome as well as what you’re doing to counter it and how your people can contribute goes a long way to stabilizing the team and gaining their buy-in to your plans.
5. Successful plans are dependent on how well they are communicated, which is what determines employee buy-in; if you choose the delusional approach of minimizing the situation then you should expect minimal results and maximum disruption.
6. Share the outcome of your thinking, whatever it is—layoffs, plant closures, project cancellations, etc. If you don’t trust your people with the information your problems are far more serious than you realize.

Any solution to a crisis must be seen as fair, reasonable, and businesslike. If management’s reaction is illogical, petty, slipshod, unrealistic, draconian or any combination of these, then it’s likely employees will conclude the ship is about to sink and leap off.

People understand that difficult situations demand difficult remedies, and they appreciate that management must at times step up to harsh challenges. But if solutions are irrationally or whimsically applied, they become a demoralizing factor, increasing the difficulties that people encounter in trying to do their jobs.

Finally, you should always attempt to find a positive note to leave with employees. Everyone already knows that things are bad; it’s your job to find a potentially favorable course of action.

Just remember, you hired your people for their brains, so don’t expect them to suddenly go dumb. Employees easily spot propaganda masquerading as a solution.

Predicting an impossibly favorable outcome not only demeans your reputation, but also could affect your future entrepreneurial efforts.

Image credit: HikingArtist

I’ve always understood that fundraising is a grueling experience, but even though I’ve done it several times, it is like childbirth—one forgets the pain shortly after and does it again…

The difficulty lies within a few areas for those of us who weren’t fortunate enough to join Google or Facebook when they were less than 50 employees resulting in a strong network of people with lots of cash that are happy to invest in their friends and acquaintances.

When raising Seed funding or Series A financing the right contact network is alpha and omega.  But how can we develop one without having been in the aforementioned or similar environments?

First, even though it is intimidating, seek to develop a contact network that has the above characteristics.  This is not a trivial exercise for most people.  Wealthy people are not the norm in most social circles and how to find them and get them to meet with us face-to-face often seems like a mystery, but networking your way to solving that mystery is a must.

Then the challenge is to gain their trust.  What does this mean?  Well, you have to be able to communicate a vision of a technology and market that they likely know very little about in such a way they believe not only that it’s a good market, but also that you are able to create something to that will successfully enter it.

Gaining trust involves a variety of skills such as learning the language of the group you want to communicate with, understanding presentation formats, being able to take criticism and return (after having been rejected) with something better.  Showing resilience is always valued, although no one likes to be unduly bothered.

Once having gained their trust, meaning that you have promulgated a credible message around what you are doing and shown that you have the skills to achieve the vision, it will still be a challenge to get them to part with their money.

At this time they will be listening to you and interacting seriously, but actively seeking a reason to NOT invest.  It is always easier for an investor to avoid investing than making an investment – there are a lot of potential investments and knowledge that only very few will be successful.  As a consequence, it’s almost always easier to not invest.

This avoidance is aggravated by the fact that if you are outside of the investor’s circle of acquaintances, there is a lower level of personal affiliation and higher perceived risk.

In short, what you are attempting to accomplish as an entrepreneur in this phase of your venture is extremely difficult and most fail.

So, in fact, this is the first real test of your innovativeness, tenacity and mettle.

Ultimately, if you are innovative and have tenacity and mettle, you will succeed.

As in sales or dating, it’s a numbers game.  With time you will find the right investor and with that a completely new set of challenges.

Good luck!

KG Charles-Harris is CEO of Emanio and a special contributor to MAPping Company Success.

Laughing at yourself is often not high on entrepreneurs list of life skills, but it’s an important one to learn.

It used to be called “standing on your dignity;” I’ve written about getting off it before, but these days it seems there are more people standing on theirs.

There is a major difference between being laughed at and doing the laughing.

It’s an age-old dichotomy.

If someone else slips on a banana peel it’s hilarious (think AFV), but if “I” slip it’s harder to see the humor.

This is especially true when the venue moves to the workplace.

“I” may find it pretty funny if a colleague sticks his metaphoric foot in it, but those feelings are different if it’s “my” foot.

Whether you’re afraid of losing respect, like my client in the post referenced above, angry, or just plain embarrassed, learning to laugh is the best solution.

Laughter defuses anger and nullifies embarrassment; as to respect, the ability to laugh at oneself increases it.

If you’re the boss, it makes you more approachable, builds trust and has a strong motivational factor.

Laughter offers major health benefits and being able to laugh at yourself, whether in public or in private, means you will always be entertained.

What it comes down to is that you can’t lose by learning to laugh at yourself.

Flickr image credit: Brett Jordan