Vinod Khosla: “I was much more of a glorified recruiter.” - Venture Hacks

Vinod Khosla at TechCrunch Disrupt:

“I think the single, most important fact about doing a startup is being clear about your vision and not letting it get distorted by what pundits and experts tell you.

“But the second most important thing is finding the right team. And that’s really, really hard, because people tend to look for people around them and so it’s the person who they happen to know as opposed to the best possible person to find.

“You know, I was relentless. It took a lot of time. I used to say when I was starting my first company, I was much more of a glorified recruiter than a CEO, or a founder. I really spent probably well over 50% of my time recruiting, and I encourage all entrepreneurs to try and do that.

“It’s also hard because you’ve never hired a marketing person. You don’t what a good marketing person is. You don’t even know what a good developer is. So whose judgment to trust, whose advice to take, is really really hard.”

Corollary: If you can’t recruit a good team, your vision probably needs distortion. Vinod’s quote starts at 19:20 in the video but I encourage you to watch the whole interview.

Corner Office - Vineet Nayar of HCL Technologies - He’s Not Fred Astaire - Question

This interview with Vineet Nayar, chief executive HCL Technologies, was conducted and condensed by Adam Bryant.

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Dan Neville/The New York Times

Vineet Nayar is the chief executive of HCL Technologies, an I.T. services company based in India. To help bridge the gap between C.E.O. and the rank and file, he once danced (awkwardly) to a famous Bollywood song at an employee event.

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Q. Talk about some of the important leadership lessons you%u2019ve learned.

A. The first day coming out of B-school, I joined HCL, and I became a boss of two people. And what I learned immediately is that they were as smart as me, their aspirations were just as great, but they did not know what to do. I also discovered that I did not know what to do, but I lied through my teeth in those early days, projecting this sense that I knew what had to be done.

I did not know where I had to go, and I was projecting as if I knew. I assume that you expect me to know where I am going, and you will respect me for that, and the day I tell you both of us are in the same boat, we would fail. That was a very big learning for me.

Q. But so many C.E.O.%u2019s are expected to have all the answers.

A. Most C.E.O.%u2019s are not as great as they%u2019re believed to be. There are exceptions. There is Bill Gates. There is Steve Jobs. There is Larry Page. But I%u2019m not one of them, and so many of us are not them.

So, if you see your job not as chief strategy officer and the guy who has all the ideas, but rather the guy who is obsessed with enabling employees to create value, I think you will succeed. That%u2019s a leadership style that evolved from my own understanding of the fact that I%u2019m not the greatest and brightest leader born. My job is to make sure everybody is enabled to do what they do well. This is part of our %u201CEmployees First%u201D philosophy.

Q. Talk more about how you create that culture.

A. You have to create a culture of pushing the envelope of trust. How do we push the envelope of trust? By creating transparency.

Q. Give me an example.

A. All HCL%u2019s financial performance information is on our internal Web. We are completely open. We put all the dirty linen on the table, and we answer everyone%u2019s questions on our internal Web site. We inverted the pyramid of the organization and made reverse accountability a reality.

So my 360-degree feedback is open to 50,000 employees %u2014 the results are published on the internal Web for everybody to see. And 3,800 managers participate in an open 360-degree and the results %u2014 they%u2019re anonymous so that people are candid %u2014 are available on the internal Web for those who gave feedback to see. So, that%u2019s reverse accountability.

The other thing we did was make sure everybody understands that the C.E.O. is the most incompetent person to answer questions, and I say this to all my employees very openly.

Q. How do you communicate that?

A. One thing I learned was to communicate in extremes. So I asked myself, how do I communicate to employees to not look up to me, but to look within, to communicate that I%u2019m one of you, to destroy that hierarchy? So I decided I%u2019m going to go into this big gathering of employees dancing to a very famous Bollywood song. And I can%u2019t dance for nuts, right? I was dancing in the aisles with these employees and making lots of noises. What happened? It completely destroyed the gap.

I%u2019ll give you one more example with the way we handle business planning. So, what is the absolute power of the C.E.O? You come and make a presentation to me about what you%u2019re going to do, and I will sit in this chair God has given to me and tell you if I like the plan or not. The power of the hierarchy flows from the fact that I will comment on what you write.

As my kids became teenagers, I started looking at Facebook a little more closely. It was a significant amount of collaboration. There was open understanding. They didn%u2019t have a problem sharing their status. Nothing seemed to be secret, and they were living their lives very openly, and friends were commenting on each other and it was working.

Here is my generation, which is very security-conscious and privacy-conscious, and I thought, what are the differences? This is the generation coming to work for us. It%u2019s not my generation.

So we started having people make their presentations and record them for our internal Web site. We open that for review to a 360-degree workshop, which means your subordinates will review it. Your managers will read it. Your peers will read it, and everybody will comment on it. I will be, or your manager will be, one of the many who read it. So, every presentation was reviewed by 300, 400 people.

What happened? There were two very interesting lessons that I learned. One, because your subordinates are going to see the plan, you cannot lie. You have to be honest. Two, because your peers are going to see it, you are going to put your best work into it.

Third, you didn%u2019t learn from me. You learned by reviewing somebody else%u2019s presentation. You learned from the comments somebody else gave you. For the 8,000 people who participated, there was a massive collaborative learning that took place.

Q. You%u2019ve done a lot of tinkering with how the organization operates. Have all the initiatives worked?

A. The failures are far in excess of successes.

Q. Give me an example of what didn%u2019t work.

A. I used to write a blog every week because I thought people wanted to know what was going through my head. But one employee told me that, %u201CActually, we want to participate in solving a problem.%u201D So, the blog got converted into me asking a question: %u201CThis is a problem I%u2019m having. How will you solve it?%u201D This is one example of how we started going in one direction, and the direction completely changed to another.

Q. How do you hire?

A. You have to want it very, very badly.

Q. How do find out if somebody really wants the job badly?

A. I ask questions that are very boring, and I see if you get agitated.

Q. Like what?

A. So, for example, let%u2019s say it%u2019s about writing. I%u2019d say: %u201CO.K., is writing a good profession? Don%u2019t you think you get bored writing? You write up an interview; somebody else%u2019s name appears on it. What other thing have you really wanted to do other than being a writer? What else excites you? So, compared to writing, does that other thing excite you more?"

Q. And how does that play out? Some people get agitated?

A. They%u2019ll say: %u201CWhat are you talking about? I completely disagree.%u201D And they have a fight with me, and I keep going with the negative. The more agitated you get, the more likely you%u2019re going to kick my butt and say, %u201CThis is what I want to do.%u201D And I want people who will kick my butt on points where we disagree. I like to hire people who have the desire inside them because I can%u2019t create it. I can help you find your desire, but I can%u2019t create it.

Q. What percentage of people say, %u201CYou%u2019re right, I actually want to do something else%u201D?

A. Most of them %u2014 90 percent of them. Most people are confused because they%u2019ve not found their %u201Ctrue north.%u201D They%u2019re not passionate about it.

Q. What else are you looking for?

A. I want people to say they want to learn, and this experience will give me learning, and from that learning I will move on. I don%u2019t want people who are coming here and teaching me something or teaching the organization something. I don%u2019t want teachers. I want people who are not only charged up because they like it, but because they will learn from this experience. I%u2019m looking for people who see experience as a continuum and not as an end in and of itself.

Q. What other key questions do you ask?

A. I think when you ask the question, %u201CWhat do you want to do next?%u201D you kind of get an answer. There are some people who want to do more of the same and some people who say I will learn from this and try something else. I don%u2019t judge the interview on content. Judge the interview on intent. What is the real intention? Does he have the intent and the attitude to be in the continuum, and that he wants to experiment with newer and newer? It%u2019s not about the title.

Q. Anything else?

A. What excites you most? What depresses you most?

Q. I%u2019ll keep asking: What else?

A. I ask people about the three or four people they interviewed with at HCL before they got to me. I say: %u201CToday, you are their boss. Which one will you hire and why?%u201D That%u2019s a question that has gotten me the right person all the time, because I know the three or four people you%u2019ve interviewed with, and it gives me an idea how quickly you can find out their strengths and weaknesses. And then I ask the question: %u201CWould you hire me and why? What did I say or ask that made a difference to you?%u201D

Q. What about meetings?

A. I have two principles in life. Either there is something I have to give to you or there is something you have to give to me. In either case, let%u2019s get down to that point, otherwise you do what you want or I%u2019ll do what I want.

So, my meetings are not polite. They are fairly blunt on both sides, and they really come down to the crux of the issues, and we are done with it pretty fast. I%u2019ll ask right in the beginning, %u201CWhat do you want?%u201D Sometimes it%u2019s %u201CI need your approval.%u201D Approved. Thirty seconds, meeting is over. Go and do what you want to do.

Q. What%u2019s your career advice for young people?

A. When you come out of college, you%u2019re raw. You have energy. You want to experiment. You want to learn. You have hopes. You have aspirations. You want to be Oprah Winfrey. You want to be Steve Jobs. You want to be Bill Gates. You want to be all that. Slowly, over time, you lose it. And by looking in the mirror every day as you get older, you fool yourself that you%u2019re O.K. There has to be another way of looking in the mirror and revisiting what you really want to do.

So I would say, maybe at the end of college, write it down honestly, in 100 words or whatever it is, and put it in a box. I call it the magic box. Revisit it once a year or once every two years and say, how honest are you to that? Don%u2019t let anybody run your life. That, in my mind, is very, very important. You should be in control of your life.

A dozen of the best start-up pitches on the Web

All the videos are linked off this website with a list below: LINK 

 

One of the best ways to prepare yourself to pitch your company is to watch other people pitch theirs. Here are a dozen of the best “start-up” pitches I could find (watching people pitch established companies is, in general, not as much fun :) ). Watch and learn! (PS Post any other good ones I may have missed in the comments and I will add them to the post.)

 

The "Iterate Fast and Release Often" Philosophy of Entrepreneurship : Technology :: American Express OPEN Forum

 

Nov 12, 2009 -

The world of entrepreneurship is well-known for being fast-paced.  First movers have an advantage, but so do those who simply build a better product.  Entrepreneurs constantly struggle between taking more time to improve their product for the customer and launching new features out before the competition beats them to the punch.   

 

 

There is a famous quote by Reid Hoffman, the founder of LinkedIn, which really resonates with some entrepreneurs:

 

If you are not embarrassed by the first version of your product, you’ve launched too late.

 

Reid’s words reflect a growing movement within the entrepreneurial community, one that I call the “Iterate Fast and Release Often” philosophy of entrepreneurship.  The core tenant of this philosophy is that it’s more important to launch a product and new features and iterate rather than take the extra time necessary to “perfect” a product or feature before launch. 

 

The debate on this philosophy has been rising rapidly recently, so I thought it was time to really take a look at the pros and cons of the “Iterate Fast and Release Often” mantra and see just why many entrepreneurs (including me) so highly recommend it.

 

The perfect product is shaped by the users

 

Pretend you are the founder of a startup company building a web app (if this isn’t you already). You know that your upstart rival is building a similar product.  However, you don’t know what features it is going to launch with, nor do you know when.  What should you do?

 

In the Iterate Fast line of thought, the answer is easy: get the thing launched with minimal features.  As long as you have the core basis, you can iterate with new features along the way.  If you are beaten to the market by another company, it can quickly amass market share, attention, and most importantly data.

 

There is something to be said about making the product right the first time, though.  Launching a very buggy product can lead to a disastrous night of damage control.  But that still is a point in favor of the Iterate Fast camp: the damage can be controlled and bugs can be fixed.  Most of all, users will forgive you as long as the core product is useable.

 

Here’s the biggest reason I am in favor of the Iterate Fast philosophy, however: the user knows best. You may believe that your research says that this set of 13 features is what users want, but you don’t really know that until the product is launched.  Users interact with web products in surprising ways.  By launching quickly, getting instant feedback from sources such as Twitter, and tracking user behavior on-site, you will have a far clearer direction for your product.  The worst thing you can do is build a feature that nobody wants.  Time needs to be treated as a limited resource.

 

So this serial entrepreneur recommends that you worry less about launching with everything you want and simply launching and seeing how users behave.  Build new features and products based on how they behave and you will end up with a killer product. 

 

Finally, don’t worry about the users being upset with your launch: they will forgive you for your errors as long as you are open and transparent about what you are doing.

 

Image courtesy of get="_blank">iStockphoto, CMCDerm1


http://www.openforum.com/idea-hub/topics/technology/article/the-iterate-fast-...

I love the quote by Reid Hoffman.  It hits the concept right on its nose.

What My Five-Year-Old Son Taught Me About Marketing | Copyblogger

image of kid dressed as groucho marx

You know that “inner child” we hear so much about — the one that’s supposedly deep inside of all of us?

Well, I live with it. As a matter of fact, I call him “Austin.”

In the five years I’ve been a parent, I’ve realized that the notion of the inner child is more than just a neat psychological construct. It’s very nearly a literal thing. As we grow up, we don’t change so much as drape layer after complicated layer of adult emotion on top of that inner child. The child doesn’t vanish; he just gets obscured and filtered.

You don’t get an evolved, new mature being. You get Austin with fifteen blankets over his head.

 

Because that kid always remains at our core (and if you’ve ever caught yourself playing kids’ games with genuine enjoyment, you know that it does), our base motivations remain as well. They just get a little harder to see.

Kids ask for love; adults have complicated passive-aggressive relationships. Kids eat what tastes good; adults want the cupcake, but worry about it going straight to their thighs.

So you want to learn about marketing? Well, despite the complicated models and terminology that some of the gurus use, it’s actually quite simple. To see what works and why, all you have to do is look to my boy.

Make the customer “want that”

When the TV is on in our house, there are sometimes twelve sequential minutes of relative quiet. Then, as the commercials come on, we get a loud play-by-play as Austin begins talking loudly to nobody:

“I want that.”

“I don’t want that.”

“I want that. That last thing. Not that; the thing before.”

It’s easy to dismiss this as incredibly annoying, but if you think about it, it’s actually really revealing.

(OK, it’s incredibly annoying too.)

Without all of those complex adult filters, kids are a conduit to something we don’t normally allow in the adult world: pure desire. There are none of the shoulds and should nots, no rationalizations and thoughts of what is proper or responsible.

That kid is still inside everyone. So the dead-simple lesson is this: Every sale starts with pure desire. Customers either “want that” or they don’t. The rest is just mental gymnastics to justify that core emotion.

Know what your customer really wants

Recently, Austin stormed through a six pack of kids’ yogurt so that we’d buy more, because each six pack had a tiny, ridiculous comic book inside. Yoplait could have filled those containers with shredded paper and they still would have gotten our dollars if Austin had his way.

Did he want the yogurt? Not so much. He wanted the comic book.

Similarly, we sometimes go to McDonald’s because of the dumb little toys they stick in Happy Meals. Or because of the giant playlands they have everywhere.

I have this experiment I keep meaning to try: I want to tell Austin that McDonald’s serves food, because I think he may be surprised to learn it. We don’t go to McDonald’s for the food. We go for the Batmobile that fires a small plastic stick at the back of my head while I’m driving.

Now . . . Wendy’s? We don’t go to Wendy’s. Their kids’ meal prizes are audiobooks on CD. Bleh. Same basic food, but none of what the boy really wants.

Interestingly, as I write this, I’m sitting at a Borders book store. There’s also a Barnes & Noble in town, but they don’t have as many big poofy chairs to sit in, and their ambient music is too loud. Apparently both stores have the same books, but I wouldn’t know that because I just come here to buy a latte and work in a comfortable chair.

Don’t lie to your customers

Cheers to McDonald’s for recognizing that small toys will get kids in the door. But jeers to our local managers for failing the “implied contract with the customer” test.

Recently, my wife and I were assaulted by a barrage of McDonald’s requests because the current pieces of plastic junk that the clerks were dropping into Happy Meals were Bakugan figures, which are Japanese balls that transform into things. (Don’t ask.)

My wife took Austin once and he returned angry, showing me a nondescript plastic Pancho Villa-like figure with a spinning sombrero. Later, I took him and despite the display for Bakugan, we again walked away with a bogus replacement — a miniature stuffed monkey.

Twice burned, Austin’s McDonald’s lust backed off significantly. And, seeing as our son had been lied to twice, my wife and I instituted a temporary boycott.

Associative conditioning works

We often buy SpongeBob SquarePants macaroni and cheese. It’s terrible. For some reason, a complicated spongelike lattice doesn’t present cheese and pasta in a pleasing ratio. And yet Austin eats it and requests it again and again because SpongeBob is on the box.

I tested the limits of this adoration yesterday over dinner. Austin hates lettuce more than anything in the world, so I asked him if he would eat lettuce that had SpongeBob printed on the leaves and came with a free coloring book. He was all over it.

Then he got mad at me when I told him that such lettuce didn’t exist.

Of course, this only works on small children. Only kids are dumb enough to fall for such a simple trick, right?

Um, not quite. Most advertising is based around associative conditioning, which is taking something that you already like and pairing it with something that they want you to like. Or with someone you already like, in the form of a celebrity (or sponge) endorsement.

You may not buy terrible macaroni because a cartoon tells you to, but you buy Nikes because LeBron James endorses them. Or you buy a phone you can’t actually talk on because it’s white with a silver Apple on it. And if you don’t do those things, then I’ll bet you were buying Pepsi because of Michael Jackson back before they lit his hair on fire.

You may be standing up and denying angrily that you do any of those things, but billions of advertiser dollars say either that you’re quite unique or that you’re mistaken. Maybe you don’t come out and say, “Ooh, Tiger Woods. I want that!” but it happens anyway — deep down, at the inner child level.

Like so many things, marketing can appear way more complicated than it is. But marketing is simple — not always easy, but simple. In fact, it’s so simple that you may be overlooking the reasons it works when it does, and why it doesn’t work when it fails.

If you have kids, look to them. See what they like, and why they like it. See what pushes their buttons, because it’ll tell you a ton. Kids aren’t dumb. They’re just adults without all of those complicated outer layers.

About the Author: Johnny B. Truant is giving a free teleclass called Attract Clients, Lose the Stress, and Do What You Love tomorrow (November 12, 2009) with his marketing veteran mother. She knows Johnny’s inner child better than he does, because she lived with it for eighteen years.

http://www.copyblogger.com/inner-child-marketing/#

Chrys Bader - Tales of an Entrepreneur

3 Symptoms of Successful Entrepreneurs

November 10th, 2009

Since I moved to the Valley after graduating from YCombinator (YC) Summer '08, I've spent over a year observing startups in multiple stages. Some are well funded, some are brand new, some have just raised funding, and some are just an idea. I've noticed several trends that define entrepreneurs who are destined to succeed as well as several leading indicators of a startup's failure.

Successful entrepreneurs are relentless in their pursuits

I can't count how many times I've been taken aback by an entrepreneur's dedication to solving a problem, reaching a milestone, or achieving something everyone thought impossible. A good entrepreneur will baffle you with their relentless dedication in pursuit of a goal. I've been amazed by the number of times I've heard an entrepreneur make a claim that I thought was ridiculous, risky, or undoable, and then watch them accomplish it. It's inspiring. It has changed me from an entrepreneur who would only set the bar only as high as I could rationalize to an entrepreneur who is willing to chase the impossible.

Successful entrepreneurs move in packs

Successful entrepreneurs are like wolves. They survive in packs. Since graduating YC S08, several of our fellow YC startups have remained in touch while others have drifted and either died or disappeared. We're very close with the founders from our YC batch, and we share things with each other in the utmost confidence, which is not something most startup founders can do. It's almost like group therapy. Having a trust circle is an invaluable resource in the Valley's competitive battlefield.

The startups that are still alive are the ones who remained in touch. We've fundraised together. We've introduced each other to potential investors and deals. We've vouched for each other. We've constantly been exposed to each other's triumphs and defeats.  We've inspired each other's products. At least one feature you see in every remaining YC S08 product was inspired by another YC S08 founder.

If we ever feel a member of our pack lagging behind or straying in the wrong direction, we do what we can to get them back on track.  We've seen too many entrepreneurs fall to the wayside, and it hurts us to see them go.  And when they go, they usually remove themselves slowly and fade into the fog of war. In the words of Paul Graham, startups don't die "loudly and heroically... mostly they crawl off somewhere and die". And like wolves, they die alone.

Successful entrepreneurs crave knowledge and are eager to share it

An entrepreneur who is not starry eyed and dreaming is an entrepreneur that will fail.

Almost every time I meet with a successful entrepreneur, I see that spark in their eyes. Maybe they just had a vision or just read a great blog post.  Maybe they just solved a problem or they just learned about a new product.  Whatever it is, they are excited to talk about it.  Entrepreneurs are always searching for knowledge, and they can't wait to share it with you. You'll find that this is reflected in their products.

This passion for knowledge is what makes a pack of entrepreneurs so unstoppable. It's essentially a collective cognitive force that is determined to take over the world.  Some of the bigger packs are referred to as "mafias" in the Valley, e.g. the YC Mafia, Paypal Mafia, XG Mafia (ex-Googlers), etc.

To sum it all up, successful entrepreneurs live in a distorted reality that they create for themselves. They have a vision that they pursue like food during a famine. Satisfaction is rare and never immediate. To be a successful entrepreneur, you need to live in a world that doesn't exist yet: the world that you want to create.

--

If you liked this post, you should follow me on twitter.

http://chrysbader.com/the-symptoms-of-a-successful-entrepreneur?c=1