More information = good
Here’s a great idea: David Jackson has started posting transcripts from company conference calls on his web site (he’s actually been this for a while, but now has pretty extensive coverage of tech company earnings calls). I try to listen to a handful of earnings calls each season, but invariably I get to fewer than I want to, or miss the key moment of a call – even when I’m listening to the replay (which is almost always what I end up doing). I’d much rather peruse the transcripts. Much easier to consume quickly. Much easier to search. Much easier to quote from (if you’re into that sort of thing). …
January 18, 2006· 1 min read
Should you be a good employee?
When I worked at Morgan Stanley there was a running debate among the analysts about whether it was better to be a good analyst or a bad analyst. The theory went that if you were a great analyst you were rewarded with more work (but not much more pay, given how few analysts actually made it to the “outstanding” category at bonus time) and if you were a mediocre or bad analyst you were passed over for projects and had a much much better lifestyle (i.e., you worked 60 hours a week instead of 90 or more). Banks never really fired analysts, so one could pretty easily coast by for the time of their indenture.My own views on this are pretty clear based on prior posts, but there were a handful of people I worked with who went the other route and were rewarded with a social life. …
January 5, 2006· 2 min read
Networking 101 Expanded
Josh Kerbel wrote me with a good question to my Networking 101 post and my follow up post to that one Here’s how you do it that I thought I’d post along with my response (with his permission). Josh Writes: A while back you wrote a post about networking and you referenced Ben Casnocha as an example of a great network, the type of guy who writes people letters and goes out and meets them. …
July 5, 2005· 4 min read
Morality and China
Tony Perkins posted a cautionary piece on China yesterday to AlwaysOn entitled “Chinese Youth, Unite A moral view of China” In it he argues that we (silicon valley) are being perhaps too quick to look past some of the moral and ethical issues with the Chinese government while we give them what he terms a “gigantic money-fisted hug”. My parents just returned from a two week vacation in China and dad sent around his reaction to Perkins piece with his recent on the ground observations as his perspective. I’m printing it here, with his permission. __________________________ I’d like to offer a (limited) bottoms-up view to complement Tony’s top-down view. I strongly agree that the economic, political, and ethical issues are strongly intertwined (or will be in the next decade). I just got back from two weeks of cycling and hiking in China. I didn’t tour factories or get any official presentation about economics or politics. I just met a lot of Chinese people in cities and in the countryside, and I wasn’t restricted in what I could talk to them about. I have three observations: 1. The expansion of the Chinese middle class is real, but superficial so far. Yes, there are a lot of cell phones, and I got excellent coverage everywhere (even on the tops of mountains and on a fairly …
June 9, 2005· 5 min read
Networking 101
Networking – To interact or engage in informal communication with other for mutual assistance or support (from Dictionary.com) I talked about networking in my recent post on How to become a venture capitalist. In it I said that I’d put up a separate post with more detailed thoughts on the subject. I don’t pretend to be the final source on the matter, but I do regularly engage in the art of networking – on both the network-ing and network-ed side of the equation. As with all my posts, comments are welcomed (and appreciated). Sorry in advance for the length of this one – I tried cutting it down, but couldn’t get it to work that way . . . Step 1: Make your list. Good networking starts with knowing who you want to meet – or at least what type of people you want to get in touch with. This can be specific (for example all of the VC’s in town when you are trying to land a VC job) or more general (your peers at other local businesses; CEOs of businesses in a certain industry; all of the patent attorney’s in some market; etc). Either way do some research and make yourself a list of people you want to meet. WRITE IT DOWN. This isn’t a mental list – this is a real list of people you want to get in touch with. Step 2: Exercise your existing network. You know people. They all know people. There is an entire industry that is trying to take advantage of this on-line. Here’s where you need a second list – write down all of the people that you know (i.e., who would return an e-mail and could vouch for you to someone else) who you think could put you either directly in touch with, or one step closer to the people on your first list. Now contact them in a personal and relevant way and ask for their help. Be specific about what you are asking for (i.e., give them names if possible andplenty of background on why you are asking for help and what you are trying to accomplish). As you get introductions, track where they came from. Your lists should start to merge and you should develop something that looks like a network map showing linkages between the people you know and the people you are trying to meet (the more linkages the better). TRACK INFORMATION. This isn’t a time to rely on your memory. Be anal about writing down who is introducing you to whom, any contextual information you gather and any background you have on the people you are trying to meet with. Step 3: Be specific & structure your meetings. Most people generally manage some form of Steps 1 and 2 in their networking efforts – even if they are not being as careful as I’d like about documenting their work. Step 3 is where people make what I think is the second most common mistake in networking: when they finally get a meeting with someone they are looking to network with they aren’t specific about what they want. I hate meetings like this. They generally include statements like “I’m not really sure what I’m looking to do,” or “I’ve got a very broad background and could fit in a bunch of different places,” or “What kind of investments does Mobius make,” or my personal favorite: “I’d like to do something more entrepreneurial.” Not helpful. At all. Do your homework on who you are meeting with. Be specific about what you are looking to do. Have a story to tell and make sure it’s relevant to the person you are talking with. If you are asking for help/advice on something open ended make sure that is part of the context of setting up the meeting (its ok to network for the purpose of figuring out what you want to do with your life, but be clear about your intent and be specific about the ways in which the person you are talking with can be helpful). The corollary to being specific is structuring your networking interactions well. Good networkers are adept at guiding networking meetings in a way that drives the results they are looking for. Whether you are talking to someone at a cocktail party or sitting in their office – know how you want the interaction to go and guide the discussion. Step 4: Take good notes. This is pretty obvious, but I’m amazed at how often I meet with people who don’t write anything down in our meetings. When I’m networking with someone I take careful notes – first, because it shows that I’m interested in and respect what the other person is saying and second because I want to keep a record of what we talked about and specific ideas for follow-up. When its awkward to take notes directly (for instance at a social event), I try to write down information after a conversation has ended – preferably on the back of the business card I just received, but at least on a notepad (which you should always carry along with a pen to any networking event). Steps 5 & 6: Plan your follow up . . . and actually follow up. These next two steps are where people really fall down – they would make for a lengthy post by themselves. By follow-up I’m not talking about the e-mail you send out the day after meeting with someone thanking them for the meeting, telling them how much you enjoyed talking with them and appreciate their perspective, attaching your CV (or pointing them to your blog ), etc. I’m talking about the ongoing communication you have with people. If you’re driving for a specific outcome this can be very structured (i.e., putting reminders in your calendar with specific things you plan to follow up with) – less so if you are engaging in more general networking. Either way, you need to make a plan for how you want to follow up with people and do so. It starts with Step 4 and the natural follow-up to step 4, which is putting this information in some form that is searchable and usable (perhaps a spreadsheet or database if you are networking for a specific outcome, since you’ll be referencing it often, but also potentially notes in your contacts or somewhere else that you store information, but in a way that you can easily separate out people that you are trying to stay in touch with in this way). Remember that networking is a two way street. Good networking is about staying in touch in a relevant way. Sending an e-mail every month asking if any new positions have come open is a bad example of this. Seeing something in the news or an article of interest that you send along to someone with your thoughts is a good example of this. See a person you know in the news – send a note congratulating them on their recent success. Notice that a VC you’ve talked with has just made a new investment – send a note. Find an article that you think would be relevant to that CEO you met with a few months ago – send it along. The idea is to stay top of mind, but in a way that is relevant to the people you are interacting with. Don’t forget to give context in your e-mail (i.e., “Sally – We met two months ago at the xyz event – John Smith introduced us . . . ). I can’t emphasize these steps enough. I can’t believe the number of meetings I have that end with the end of the meeting or a short follow-up note. Even if there were specific follow-up items. People fall down on follow-up and I think expect that they can pop in and out of someone’s network as the need arises. You just accomplished what may be the hardest part of networking (getting a meeting in the first place; grabbing someone’s attention at a party; etc.) – don’t waste your hard work by just entering their contact info in Outlook. …
May 31, 2005· 7 min read
Follow up to “Thinking in groups”
Writing this reminds me that there really should be a function in TypePad that allows you to simply elevate a comment to a post . . . Abhi responded to my post on Thinking in groups with the following comment, which was right on target: tohers), and thus assume that that the correct behavior was inaction). Let me expand on this in the context of venture capital, since I didn’t get into it in my original post. I think the pressur around conformity is significantly exacerbated for a non-partner VC . In a body of equals there’s clearly some pressur to go with the flow. Where the group is not all on equal standing this pressure is intensified. Clearly a key to being an effective VC is not falling into this trap. This can be particularly hard for a junior VC and especially if s/he is the observer rather than the board member (see my post on the difference here). I’ve watched this dynamic play out in front of me – where dissenting opinion, particularly of the partner, is absolutely not allowed. I think this is stupid way for partners to run their business – after all they pay th people around them to have opinions (thankfully Brad heartily agrees and encourages full participation from everyone around the table), but it happens all the time. How easy for groups (i.e., boards) to sometimes lean towards a similar interpretations of events” Borrowing liberally from Cialdini’s ‘Influence’ book – Social Proof – In any situation we are apt to behave exactly the same as other people behave (so board members will often look at other board members to decide how to react), and this is even stronger when the other people are similar to us (i’m assuming most board members are quite similar to each other). Ex: If there’s a red light but no traffic then one person crossing will usually lead to everyone else crossing. Ex: Comedy shows have canned laughter because that automatically means people laugh ‘along with’ the fake laughter. Ex: The chance of a wounded person getting help is higher if a single person were to see him than if a bunch of people saw him (as in the latter case these people would ALL see each other for reactions, see no response (as they’re all looking to
May 27, 2005· 2 min read
Thinking in groups
In one of my first posts (The Adventure Reference) I talked about what amounts to pattern recognition – the ability to interpret information and draw conclusions based on experience with similar sets of circumstances. I was thinking about how difficult this can be the other day and, importantly, how easy for groups (i.e., boards) to sometimes lean towards a similar interpretations of events. This reminded me of a classic experiment in psychology that very clearly illustrates this point. In 1962 psychologists Schachter and Singer 1962 performed an experiment that dealt with what they called the two factor theory of emotion. Basically they were trying to show that people’s interpretation of an emotive state can be easily influenced by environmental factors (in their case another person). In their experiment they injected college students with epinephrine, which is a drug that acts like adrenaline and causes a state of emotional arousal. The students were, of course, told the injection was something else and then placed in a room with someone they thought was also in the study to ‘let the shot take effect’. In actuality their room-mate was working for the experimenters and took on one of several emotional states (anger, excitement, etc). It turns out that the subjects were highly susceptible to taking on the emotional state of the room-mate. They were interpreting their emotional arousal as anger if the room-mate was angry, excitement if the room-mate was excited and so on. …
May 26, 2005· 2 min read
Make original mistakes
“Make original mistakes.” Someone (Brad? Wendy? I can’t remember) said this in a board meeting about a month ago. I wrote it down on a piece of paper and have been carrying it around with me ever since. The concept is right on and meaningful no matter what you do. For me it is a reminder of two important things: First, we all have mentors and peer groups. As a venture capitalist, for example, I have the partners and principals at my firm; I have partners at other venture firms with whom I have worked with closely; I have the CEO’s and executives at the companies I work with; etc.. These are great resources for me to tap when I’m faced with challenges. Whether you work for a venture backed company, a large organization or a non-profit you there are people you can turn to for advice and counsel. Second, don’t be afraid to share your challenges with others. It’s only natural to celebrate our successes and dig in and think harder about where we’re coming up short. By all means, share the good news; but also share the not-so-good news and the challenges. Share them with your board, share them with your peers, share them across your executive team. Ask for help. Find people who have faced similar challenges. …
May 19, 2005· 2 min read
The days of yore
Credit to Brad for this one – I had completely forgotten about it when he sent it to me (I waited for him to blog it, but he’s been out of town so I thought I’d put it up). Remember the wayback machine? www.waybackmachine.org. It lets you search for old versions of web sites. Want to know what Yahoo’s site looked like in October of 1996 – here you go . …
May 3, 2005· 1 min read
Taking 100% responsibility one step further
Sandy Hamilton (one of the key execs at Newsgator) did a nice follow-up post to the note I wrote about taking 100% responsibility. In it he talks about what that actually means – how we present ourselves and the importance of taking responsibility not just for what you are saying, but also for what other people are hearing. What a powerful concept. Thanks Sandy for taking this to the next level. In case the link above isn’t working, here’s the full URL of his post: http://sandyhamilton.blogs.com/sandy_hamilton/2005/04/did_i_say_that.html
May 1, 2005· 1 min read