Articulating the Problem is the First Step Toward Solving It

A while back, we were having some specific challenges at Return Path that were *really* hard to diagnose.  It was like peeling the proverbial onion.  Every time we thought we had the answer to what was going on, we realized all we had was another symptom, not a root cause.  We’re a pretty analytical bunch, so we kept looking for more and more data to give us answers.  And we kept coming up with, well, not all that much, besides a lot of hand-wringing.

It wasn’t until I went into a bit of a cave (e.g., took half a day’s quiet time to myself) and started writing things down for myself that I started to get some clarity around the problem and potential solutions.  I literally opened up a blank Word document and started writing, and writing, and writing.  At first, the thoughts were random.  Then they started taking on some organization.  Eventually, I moved from descriptions of the problem to patterns, to reasons, to thoughts about solutions. 

But what really put me on a track to solutions (as opposed to just understanding the problem better) was starting to *talk* through the problems and potential solutions.  It didn’t take more than a couple conversations with trusted colleagues/advisors before I realized how dumb half of my thoughts were, both about the problems and the solutions, which helped narrow down and consolidate my options considerably.

Even better than solving the problems, or at least a driver of being able to solve them, is feeling more in control of a tough situation.  That’s probably the best thing I’ve learned over the years about the value of articulating problems and solutions.  For a leader, there is no worse feeling than being out of control…and no better feeling than the opposite.  Some level of control or confidence is required to get through tough times.

I suppose this post is not all that different from any 12-step program.  First, admit you have a problem.  Then you can go on to solve it.  But the point I am trying to make is more than that – it’s not just admitting you have a problem.  It’s actually diving in deep to the potential causes of the problem, and writing them down and (better) speaking them out loud a few times, that puts you on the road to solving those problems.

A Little Quieter Than Usual, For Now

As many of you know, I’m writing a book called Startup CEO:  a Field Guide to Building and Running Your Company, which is due to the publisher in a few weeks.  I’d originally thought the book would be an easy project since the idea was to “turn my blog into a book.”  But then it turned out that for the book I wanted to write, I’d only written about 1/3 of the content on the blog already!

So the past few weeks I’ve been writing my brains out.  I now have a nearly 100,000 word draft, which needs to be edited down quite a bit, charts and tables inserted, outside contributors added in.

For the next handful of weeks, I’m going to post a bit less frequently than usual – probably every other week – as a result.  But once I get through this period, I’ll come roaring back with TONS of new content written for the book!

How to Wow Your Manager

Last week, I talked about how to Wow your employees.  Now I am going to discuss the converse of that – How to Wow your Manager.  Why Wow your manager?  Even if you are senior leader in an organization, the Wow factor is still important.

What impact does a Wow have?  It sends the signal that you are on top of things.  Symbolism is important.  It also advances the cause further and faster.  Why do you want to foster Wow moments with your team?  High performing teams have a lot of Wow going on.  If all members of a team see Wow regularly, they are all inspired to do more sooner, better.

Here are my top 10 examples on how to WOW your manager, along with the intended impact:

1. Show up for every check-in with the full agenda – send it a day or more ahead (Give your manager time and space to prepare)
2.  When you are asking your manager to communicate something (an email to the team, a reference letter, etc.), draft it for him or her (Editing is much easier than creating)
3.  Do a start-stop-continue analysis once a year on all of your key activities (Make yourself as efficient and effective as possible – that’s your responsibility as much as your manager’s)
4.  Own your own development plan and check in on it at least quarterly (Those who own their own career paths progress more quickly down them)
5. Read a relevant business book and ask your manager to discuss insights with you (Staying current with best practices in your field – books, articles, blog posts, videos, mentors, lectures –  is key in a learning organization)
6.  Dress for success – even casual can be neat and “client ready” (Your presence has an impact on those around you.  There’s no reason anyone should ever have to comment on your clothes, your hair, or any aspect of your personal hygiene)
7. Respond to every email where you are on the TO line within a day, even if it’s to say you will respond longer form later (At Return Path,  you have to be in the jet stream of communications. Otherwise, you find yourself in the exhaust of the jet stream)
8. End every meaningful interaction by asking for informal feedback on how you’re doing and what else you can be doing (Again, part of being in a learning organization…and taking more tasks on is always a sign that you are ready for more responsibility)
9. Do something that’s not required but that you feel is a best practice (This shows you’re on top of your game.  One example:  I send the Board a summary, the details, and the YoY trending of all of my expenses every year.  I don’t have to, but enough CEOs out there have high profile expense problems that I decided it’s a good practice.  They all LOVE it)
10.  (If you have staff reporting into you) Show up for every check-in with  your manager with a list of all staff issues and highlights (You need to bubble things up, both good and bad, so your manager is on top of his or her overall team and (a) is never surprised by events, (b) knows how best to handle skip-level communications, and (c) can think more broadly about resource deployment across the organization)

How to Wow Your Employees

Here at Return Path we like to promote a culture of WOW and a culture of hospitality.  Some of you may be asking, Why Wow your employees?   The answer is, there is nothing more inspirational than showing an employee that you care about him or her as an individual.  The impact a WOW has is tremendous.  Being a manger is like being in a fishbowl.  Everything you do is scrutinized by your team.  You lead by example whether you want to or not and showing your own vulnerability/humanity has an amazing bonding effect.

Why do you want to foster Wow moments with your team?  High performing teams have a lot of Wow going on.  If all members of a team see Wow regularly, they are all inspired to do more sooner and better.

Here are 15 ways to Wow your employees

1. Take them or her to lunch/breakfast/drinks/dinner quarterly individually, one nice one per year
2. Learn their hobbies and special interests; when you have a spiff to give, give one that is in line with these
3. Remember the names of their spouse/significant other/kids/pets
4. Share your development plan with them and ask for input against it at least quarterly
5. Respond to every email from your staff by the end of the day; sooner if you are on the TO line
6. Ask them what they think of a piece of work you’re doing
7. Ask them what they think of the direction the company is going, or a specific project
8. Periodically take something off each one’s plate, even if it’s clearly theirs to do
9. Periodically tell them to take a day off to recharge, ideally around something important in their lives
10. End every meaningful interaction by asking how they are doing and feeling about work
11. End every interaction by asking what you can be doing to help them do a better job and advance their career
12. Read all job openings and highlight ones that match their interests for future positions
13. Read the weekly award list and call out those FROM and TO your team in staff meetings
14. Send a handwritten note to their home when you have a moment of appreciation for them
15. (If your employee has a team he/she manages) Ask for input before every skip-level interaction and summarize each one after the fact in an email or in person

I try to have Wow moments regularly with people at all levels in the organization.  Here’s one that sticks with me.  At the Colorado summer party several years ago, I went up to someone who was a few layers down in the organization and said hi to her husband and dog by name.  I had met them before, and I work at remembering these things.  The husband was blown away – I hadn’t talked to him in probably two years.  In front of the employee, he gushed – “this is exactly why my wife loves working here – we are totally committed to being part of the RP family.”

There are as many ways to be a great manager and WOW your employees as there are stars in the sky…hopefully these ideas give you a framework to make these your own!

Book Short:  Entrepreneurial Lessons

The Startup Playbook: Secrets of the Fastest-Growing Startups from 42 Founders, by David Kidder, is the ultimate coffee table book for entrepreneurs and people who are interested in how they think about running their businesses.

David is the author of the Intellectual Devotional series (here’s a link to one of the five or six books in the series), he’s a good friend of mine and a member of a CEO Forum that I’m in, and my major disclosure about this blog post is that I’m one of the 42 entrepreneurs David interviewed for and profiles in the book.

The Startup Playbook is very different from my own book (in progress) on being a Startup CEO.  Where my book is going to go deep on different topics – think of it as a bit of a field guide – David’s book is extremely broad in its coverage of different entrepreneurs and their stories.  Taken together, the book paints a great picture of how CEOs think about the most important parts of the job.  It’s also a nice change of pace (for me, anyway) that David profiles some entrepreneurs who aren’t in the Internet/tech space.

It was an honor to be included in The Startup Playbook next to entrepreneurs like Reid Hoffman and Elon Musk.

Taking Stock, Part II

Last year, I wrote about the three questions I ask myself at the beginning of every year to make sure my career is still on track. [https://onlyonceblog.wpengine.com/2012/01/taking-stock]   The questions are:

1. Am I having fun at work?
2. Am I learning and growing as a professional?
3. Is my work financially rewarding enough, either in the short term or in the long term?

This year, I am adding a fourth suggestion following a great conversation I had a bunch of months back with Jerry Colonna, a great CEO coach, former VC, and all around great person.  Question four is:

Am I having the impact I want to have on the world?

This last question was probably always implicit in my first two questions – but I like calling it out separately.  All of us have purpose in our lives and impact on others, whether it’s family, friends, colleagues, clients, or some slice of broader humanity.  Asking whether that impact is present and enough is just another check and balance on my own operating system to make sure that I’m still on track with my own goals and values.

Happy New Year!

Startup CEO (OnlyOnce- the book!), Part II – Crowdsourcing the Outline

As I mentioned a few weeks ago here, I’m excited to be writing a book called Startup CEO:  A Field Guide to Building and Running Your Company, to be published by Wiley & Sons next summer.  Since many readers of OnlyOnce are my target audience for the book, I thought I’d post my current outline and ask for input and feedback on it.  So here it is, still a bit of a work in progress.  Please comment away and let me know what you think, what’s missing, what’s not interesting!

1           Part One: Vision and Strategy (Defining the Company)
1.1          Setting the Company’s Agenda
1.2          NIHITO! (or, “Nothing Interesting Happens in the Office”)
1.3          Setting the Business Direction
1.4          Strategic Planning, Part I: Turning Concepts Into Strategy
1.5          Strategic Planning, Part II: Creating the Plan
1.6          Defining Mission, Vision and Values
1.7          Communicating Vision and Strategy
1.8          The Role of M&A
1.9          The Art of the Pivot
1.10       How Vision and Strategy Change over Time

2           Part Two: Talent (Building the Company’s Human Capital)
2.1          Building a Team
2.2          Scaling the Team
2.3          Culture
2.4          Interviewing
2.5          Recruiting
2.6          Onboarding
2.7          Setting Goals
2.8          Feedback
2.9          Development
2.10       Compensation
2.11       Promoting
2.12       Rewarding
2.13       Managing Remote Offices and Employees
2.14       Firing: When It’s Not Working
2.15       How Talent Changes over Time

3           Part Three: Execution (Aligning Resources with Strategy)
3.1          Making Sure There’s Enough Money in the Bank
3.2          Types of Financing
3.3          Fundraising Basics
3.4          Negotiating Deals
3.5          Pros and Cons of Outside Financing
3.6          Forecasting and Budgeting
3.7          Creating a Company Operating System
3.8          Meeting Routines
3.9          Driving Alignment
3.10       A Metrics-Driven Approach to Running a Business
3.11       Learning
3.12       Post-Mortems
3.13       Thinking About Exits
3.14       How Execution Changes over Time
3.14.1      Finance
3.14.2      Execution

4           Part Four: Management And Leadership (The How of Being a CEO)
4.1          Leading an Executive Team
4.2          Critical Personal Traits
4.3          Being Collaborative
4.4          Being Decisive: Balancing Authority and Consensus
4.5          The Value of Symbolism
4.6          Getting the Most out of People
4.7          Diving Deep without Being Disruptive
4.8          Articulating Purpose
4.9          Collecting Data from the Organization
4.10       Managing in an Economic Downturn
4.11       Managing in Good Times vs. Bad Times
4.12       Communication
4.12.1      Macro (to Your Company and Customers)
4.12.2      Micro (One-on-One)
4.13       How Management and Leadership Change over Time

5           Part Five: Boards (A Unique Aspect of the CEO’s Job)
5.1          Building Your Board
5.2          Meeting Materials
5.3          Meetings
5.4          Between Meetings
5.5          Making Decisions and Maximizing Effectiveness
5.6          The Social Aspects of Running a Board
5.7          Working with the Board on Compensation
5.8          Evaluating the Board
5.9          Serving on Other Boards
5.10       How Boards Change over Time

6           Part Six: Managing Yourself So You Can Manage Others
6.1          Creating a Personal Operating System
6.2          Working with an Executive Assistant
6.3          Working with a Coach
6.4          Finding Your Voice
6.5          The Importance of Peer Groups
6.6          Your Family
6.7          Taking Stock
6.8          Staying Fresh
6.9          Staying Healthy
6.10       Traveling

A New VC Ready to Go!

One of the interesting things about being in business for 13 years (as of last week!) at Return Path is that we have been around longer than two of our Venture Capital funds.  Fortunately for us, Fred led an investment in the company with his new fund, Union Square Ventures, even though his initial investment was via his first fund, Flatiron Partners.  And even though Brad hasn’t invested out of his new fund, Foundry Group, he remains a really active member of our group as a Board Advisory through his Mobius Venture Capital investment.

Although our third and largest VC shareholder, Sutter Hill Ventures, is very much still in business, our Board member Greg Sands just announced today that he has left Sutter and started his own firm, Costanoa Venture Capital, sponsored in part by Sutter.  The firm was able to buy portions of some of Greg’s portfolio companies from Sutter as part of its founding capital commitment, so Return Path is now part of both funds, and Greg, like Fred, will continue to serve as a director for us and manage both firms’ stakes in Return Path.

The descriptions of the firm in Greg’s first blog post are great – and they point to companies like Return Path being in his sweet spot:  cloud-based services solving real world problems for businesses, Applied Big Data, consumer interfaces and distribution strategies for Enterprise companies.

I give Greg a lot of credit for going out on his own with a strong vision, something that’s unusual in the VC world.  We’re proud to be part of his new portfolio, and I’m sure he’ll be incredibly successful.  Like Fred and Brad and their new firms, Greg understands the value of being able to write smaller initial checks and back them up over time, he is a disciplined investor, and he is a fantastic Board member and mentor.

Book Short:  Culture is King

Tony Hsieh’s story, Delivering Happiness (book, Kindle), is more than just the story of his life or the story of Zappos. It’s a great window into the soul of a very successful company and one that in many ways has become a model for great culture and a great customer service model.  It’s a relatively quick and breezy read, and it contains a handful of legendary anecdotes from Zappos’ history to demonstrate those two things — culture and customer service — in action.

As Hsieh himself says in the book, you can’t copy this stuff and believe it will work in your company’s environment as it does in Zappos’.  You have to come up with these things on your own, or better yet, you have to create an environment where the company develops its own culture and operating system along the broad lines you lay out.  I think Return Path has many similarities with Zappos in how we seek out WOW experiences and in our Core Values, as well as the evolutionary path we took to get to those places.  But as much as I enjoyed reading about a like-minded company, I also recognized the specific things that were different and had a good visceral understanding as to WHY the differences exist.

It is the rare company that gets to $1 billion in revenue ever – let alone within a decade.  For that reason alone, this is a worthwhile read.  But if you are a student of organizational culture and believe in the power of values-driven organizations, this is good affirmation and full of good examples.  And if you’re a doubter of the power of those things, this might just convince you to think twice about that!

The Value of Paying Down Technical Debt

Our Engineering team has a great term called Technical Debt, which is the accumulation of coding shortcuts and operational inefficiencies over the years in the name of getting product out the door faster that weighs on the company’s code base like debt weighs on a balance sheet.  Like debt, it’s there, you can live with it, but it is a drag on the health of the technology organization and has hard servicing costs.  It’s never fun to pay down technical debt, which takes time away from developing new products and new features and is not really appreciated by anyone outside the engineering organization.

That last point is a mistake, and I can’t encourage CEOs or any leaders within a business strongly enough to view it the opposite way.  Debt may not be fun to pay off, but boy do you feel better after it’s done.  I attended an Engineering all-hands recently where one team presented its work for the past quarter.  For one of our more debt-laden features, this team quietly worked away at code revisions for a few months and drove down operational alerts by over 50% — and more important, drove down application support costs by almost 90%, and all this at a time when usage probably doubled.  Wow. 

I’m not sure how you can successfully scale a company rapidly without inefficiencies in technology.  But on the other side of this particular project, I’m not sure how you can afford NOT to work those ineffiencies out of your system as you grow.  Just as most Americans (political affiliation aside) are wringing their hands over the size and growth of our national debt now because they’re worried about the impact on future generations, engineering organizations of high growth companies need to pay attention to their technical debt and keep it in check relative to the size of their business and code base.

And for CEOs, celebrate the payment of technical debt as if Congress did the unthinkable and put our country back on a sustainable fiscal path, one way or another!

As a long Post Script to this, I asked our CTO Andy and VP Engineering David what they thought of this post before I put it up.  David’s answer was very thoughtful and worth reprinting in full:

 I’d like to share a couple of additional insight as to how Andy and I manage Tech Debt in the org: we insist that it be intentional. What do I mean by “intentional”

•  There is evidence that we should pay it
• There is a pay off at the end

 What are examples of “evidence?”

•  Capacity plans show that we’ll run out of capacity for increased users/usage of a system in a quarter or two
• Performance/stability trends are steadily (or rapidly) moving in the wrong direction
• Alerts/warnings coming off of systems are steadily or rapidly increasing

 What are examples of “pay off?”

•  Increased system capacity
• Improved performance/stability
• Decreased support due to a reduction in alerts/warnings

 We ask the engineers to apply “engineering rigor” to show evidence and pay-offs (i.e. measure, analyze, forecast).

 I bring this up because some engineers like to include “refactoring code” under the umbrella of Tech Debt solely because they don’t like the way the code is written even though there is no evidence that it’s running out of capacity, performance/stability is moving in the wrong direction, etc. This is a “job satisfaction” issue for some engineers. So, it’s important for morale reasons, and the Engineering Directors allocate _some_ time for engineers to do this type of refactoring.  But, it’s also important to help the engineer distinguish between “real” Tech Debt and refactoring for job satisfaction.

Not Just About Us

When we updated our values this year, we felt there were a couple critical business elements missing from this otherwise “how” series of statements.  One thing missing was our clients and users!  So we added this value to our list:

Not Just About Us:  We know we’re successful when our clients are successful and our users are happy.

This may be one of the most straightforward statements of all our values, so this will be a short post.  We serve lots of constituencies at Return Path.  And we always talk about how we’re a “People First” organization and what that means.  I suppose that inherently means we are a “Client Second” organization, though I’m not sure we’d ever come out and say that.  We do believe that by being People First, we will ultimately do the best job for our customers. 

 That said, we aren’t in business just to build a great company or to have an impact on our community.  Or even our shareholders.  We are also in it for our customers.  Whether we are producing a product for mailers, for ESPs, for ISPs, for security companies, for agencies, or for end users, we can’t forget that as an important element of our success every day.