• How to Hire Like a Start-Up
  Great blog posting from Rob Walling on hiring like crazy
  (tags: Blog Entrepreneur Technology)

• Return Path Solutions for Increased Email Delivery, Performance
  Return Path’s newly unveiled web site is now a blog, with an online resource center for email marketers and postings by its executive team
  (tags: Blog Email Email_Marketing Marketing Return_Path ReturnPath)

• Soup for Nuts
  From our client, Business & Legal Reports, a HILARIOUS read in the strange-but-true category. This is essential reading for any manager who has ever mediated an employee dispute. Tthanks to Tami Forman for citing this one!
  (tags: Humor)

I’ve written a couple times this past year about our ReturnShip program, which is a 4-month paid internship program designed for women who have been out of the workforce for more than 3 year to re-enter and  build credible and relevant experience, and to expand the talent pool for our organization.  I wrote about the initial concept when we launched v2 of the program, and then again when v2 concluded with the hiring of four of the six participants.

I’m immensely proud of our organization for inventing the program (Andy Sautins, our CTO, gets credit) and for managing it so well during the last cycle (Cathy Hawley, our VP People, and Miranda Reeves, VP Solution Management, get lead credit, but lots of other people had a hand in its success).

Yesterday, we officially launched v3 of the program and are very excited about how it is scaling.  The launch was coincident with a visit to our office by Congressman Jared Polis, who represents our district in Colorado, as part of his Startup Day Across America visit to the district, which was exciting for us.

v3 of the program is poised to take the concept to the next level.  We will have almost 40 Returnees in the program – but we’ve taken the program beyond Return Path and beyond our Colorado office.  We are going to place Returnees in five locations – Broomfield, Colorado, New York City, Austin, Indianapolis, and London – and we recruited five like-minded partner companies to join the program as well.  SendGrid, ReadyTalk, MWH Global, and SpotXchange will participate in the program in the Denver area, and Seattle-based Moz will participate as well.  We are still going to administer the program out of Return Path, with Andy and Cathy being joined by Katie Green from our People team as well as Laura Harrison, one of our v2 Returnees, as program manager (among others).

We are starting the recruiting cycle now for the program, which starts mid-October.  While we are getting a centralized web site up and running, in the meantime, you can see the available openings on the respective company web sites:

• ReturnPath @ http://bit.ly/1PhaweF
• MWH Global @ http://bit.ly/1JfHUgz
• SpotXchange @ http://bit.ly/1CPqR22
• Sendgrid  @ http://bit.ly/1CTmjtk
• ReadyTalk @ http://bit.ly/1gu4sU1
• Moz (coming soon)

Here are a couple pictures from our time with Congressman Polis yesterday – one of him and Laura Harrison, Karen Brockwell, and Lisa Stephens (three of our v2 Returnees), and one of me along with representatives of the other participating companies.

(This is the third post in a series documenting the work I did in Colorado on the Governor’s COVID-19 Innovation Response Team – IRT.  First two posts are here and here.)

Friday, March 20, Day 4

• Morning pilates going pretty well, a good daily routine here
• Wellness Screening on the way in for the first time.  Uniformed National Guard guys taking temperature on surface of face/temples.  Can’t get it to work – takes 6x
• Leadership and prioritization of important over urgent – staff the team
• Strategic National Stockpile failure – they send us 60,000 masks and Colorado is using 68,000/day.  They send us ZERO ventilators. Seems like it’s neither strategic nor a stockpile. Guess it really is every state for itself
• Unclear sometimes what the actual role of the state is – sometimes procuring, sometimes getting private sector to procure with some coordination, etc.
• Getting out in front of the parade – the private sector is swarming all over this, how can we help coordinate and channel the energy?
• State gov seems incredibly nimble here – seconding people from departments all over to the crisis, etc.  Bureaucracy is real, but it can melt away in an emergency, or when the governor wants it to. Really impressive
• Going to try DoorDash and see if it’s any different than UberEats.  (It’s not.) Big night.

Saturday, March 21, Day 5

• Saturday but office still 75%
• Wellness Screening again.  Still can’t get thermometer to work for quite a while
• Mike Willis asked for feedback and observations (good) – they are
  • Atmosphere in EOC calm, focused, integrated, SMART, nimble, fast – opposite of “government”
  • Opening meeting on Tuesday morning – calm, focused, caring, quiet urgency
  • Didn’t realize he was military
  • Mentioned yesterday’s “not vetted, not integrated, not helpful” moment, poignant but respectful
• Team pull up, drowning in emails, plan to get organized
• Governor briefing
• Working on replacing me…
• Seamless prioritization of things that are gateway items and enablers.  We have a project tracker, but it’s almost useless. Mostly we are just doing prioritization in the moment.  No choice. Crisis mode
• Gov call – carefully weighing isolation strategy (economic as well as risk of civil disobedience) with number of projected deaths – sounds like the same conversation I’m reading about in the papers at the national level, but really interesting to see it up close and personal. Asked for plan around making food and services safer – super thoughtful “it’s not the economic activity that causes problems, it’s social proximity, are there ways we can keep one and minimize the other?”
• Colorado still has around 500 cases statewide – about ¼ of Westchester County.  Denver has less than 100. Still, feels like we are watching the tsunami coming at us in slow motion
• Dinner at a very close friend’s house who lives in town – elbow bumps and sat at the other end of the table.  Fun and social, but feels like even things like this are about to come to an end. Got to do laundry

Sunday, March 22, Day 6

• Sunday but office still 75%
• Multiple failures again with wellness screen, then we figure it out – on the walk over from the hotel, it’s cold enough that my skin temperature is out of range for the contact thermometers they have.  Since I am coming in early when there is no line, my face is too cold when I get to the front
• Adding staff, nowhere to put them, no organized email lists, working on org charts, have to retool O/S for meetings/tasks.  A little chaotic, but at least I know how to do this stuff
• Finally got connection to NY State to do some benchmarking on testing – doesn’t seem like states coordinate or share info a lot, but the team there was happy to 
• Finally have a few minutes to do planning on major swim lanes
• More working on replacing me
• This is the problem with statistics.  Models are only as good as the inputs, and the inputs here seem like they’re all over the place…not just here in CO, but everywhere.  It’s not like we have a pandemic every year to refine our math
• Interviewing Sarah Tuneberg (came in via Brad) to replace me with Lisa and Stan – she’s AWESOME and she’s hired – starts on the spot by coming in to stand with us behind the Governor at a press conference.  Talk about a rapid recruiting process!
• Seems like she will be awesome.  Probably way better than me – has a ton of public health and emergency/disaster response experience in addition to some private sector/startup/tech experience
• Her first worry never even occurred to me – Fatality Management – morgue surge capacity.  “Gift to the living” – so awesome
• Lameness of Trump press conference – self praise followed by sycophants in the midst of a typhoon
• Gov press conference (here) – authentic and well received.  “Grim reaper” was quite poignant. He worked in the key messages we asked him to about public misinformation of testing, talking points was Google Doc with 30+ people in it – good example of collaboration and control, seamless, last minute but still came out great.  Announces social distancing and lots of good examples about groceries, jogging, still no lockdown
• Lots of RP Colorado people seeing press conference…phone buzzing like mad in my pocket!  So many awesome notes from friends and former colleagues thanking me for being there to help, only one or two snarky comments about my orange tee shirt while others were in blazers (hey, it was a Sunday and the presser was called last minute!)

Stay tuned for more tomorrow…

I have an end of year work routine that’s a pull-up and self-assessment. I’ve been doing this for years, and I’ve written about its evolution in Part I and Part II of this series.

I’ve always taken a few minutes at this time of the year to ask myself these four questions:

• Am I having fun at work?
• Am I learning and growing as a professional?
• Is my work financially rewarding enough, either in the short-term or in the long-term?
• Am I having the impact I want to have on the world?

If I answer at least 2.5 of these questions as yes, I feel like things are on track. If I am below that, or even at 2.5 sometimes, it’s time for a rethink of what I’m doing or how I’m doing it.

I was having lunch with my friend Bryton, the CEO of Aquabyte, a few weeks back, and that conversation spurred on a 5th question, which I’ll now add to my end of year routine:

• Am I excited about what I’m doing?

I’ve realized now that I’m over two years into the journey at Bolster that there’s a significant value in being really into the subject matter of the business. I thought I was at Return Path…but now I realize that I wasn’t nearly as excited about what I was doing as I could have been. Our work at Bolster of helping founders be more successful is more personally meaningful to me than solving email deliverability challenges. That work had real impact on the world…but I just wasn’t into it as much.

And that makes a big difference in answering the general question of “Am I on track?” at the end of the year. I’ll skip next week and see you all in 2023. Happy New Year and Happy Holidays, everyone!

I’ve gotten to know a number of Bolster members over the last few years, and one who I have come to appreciate quite a bit is Tim Porthouse. I’m on Tim’s email list, and with his permission, I’m reprinting something he wrote in his newsletter this month on the topic of CEO engagement in politics and current events. As you may know, I’ve written a bunch on this topic lately, with two posts with the same title as this one, Should CEOs wade into Politics (part I here, part II here). Thanks to Tim for having such an articulate framework on this important subject.

Your Leadership Game: “No Comment.”

Should you speak up about news events/ politics?

Most of the time, I say, no!

Startup CEOs feel pressure to speak up on news events: Black Lives Matter, Abortion, LBGTQ+ rights, the conflict in Israel/Palestine, Trump vs. Biden. Many tell me they feel pressured to say something, but are deeply conflicted.

Like you, I am deeply distressed by wars, murder, restrictions on human rights, bias, and hate. But if we feel something, should we say something?

Before you speak up, ask the following questions:

1.      Mission relevance. Is your startup’s success or mission on the line? Are customers or employees directly impacted? Example: It makes sense for Airbnb to advocate when a city tries to ban short-term rentals. It makes sense to advocate for your LBGTQ+ employees when a state tries to restrict their rights.

2.      Moving the needle. Will speaking out change anything? If you “denounce” something or “take a stand,” what really happens? Example: If you have employees in a state banning abortion and you tell them your startup will support them as much as the law allows, this could create great peace of mind for employees. But if your startup does not operate in Ukraine or Russia, then denouncing Russia does little (and Russia does not care!)

3.      Expertise. Do you have a deep understanding of the situation? It’s usually more complicated than it appears, especially at first. Once you speak out, you have painted yourself into a corner you will be forced to defend.

4.      Precedence and equivalence. If you issue a statement about today’s news event, will you react to tomorrow’s event? Why not? Where do you draw the line?Someone will be offended that you spoke up about X but not Y.

5.      Backlash. Are you ready to spend significant time engaging with those who disagree with you?It can get ugly quickly, and mistakes can be costly. Plus, the American public is tiring of business leaders commenting on the news.

6.      Vicarious liability. Who are you speaking for? When you say, “Our startup denounces X”?Does the whole company denounce it? You don’t know, and probably not. Does the Leadership Team? They may feel pressured to support you. What you are really saying is, “I denounce X!” OK, great, then say it to your friends and family. Leave your startup to talk about business.

If your answers are “yes,” – then speak out.

If not, I recommend keeping quiet.

In my opinion, our job is to build great companies, not debate current events.

By not speaking out, you can say, “We don’t talk politics here.” You can shut down any two-sided arguments at work and say, “Let’s get back to work,”removing a big distraction. Remember when employees protested because Google was bidding for Pentagon contracts?

I realize that you will be challenged to make a statement, that, “Saying nothing is unacceptable/ complicit.” But whoever challenges you will only be satisfied if you support their view.

If you still want to speak out, I respect your choice. Some of you will be angry with me for writing this, and I accept that. I’m asking you to think carefully before you make a statement.

Scaling the Team

(This post was requested by my long-time Board member Fred Wilson and is also running concurrently on his blog today.  I’ll be back with the third and fourth installments of “The Best Laid Plans” next Thursday and the following Thursday)

When Return Path reached 100 employees a few years back, I had a dinner with my Board one night at which they basically told me, “Management teams never scale intact as you grow the business.  Someone always breaks.”  I’m sure they were right based on their own experience; I, of course, took this as a challenge.  And ever since then, my senior management team and I have become obsessed with scaling ourselves as managers.  So far, so good.  We are over 300 employees now and rapidly headed to 400 in the coming year, and the core senior management team is still in place and doing well.  Below are five reasons why that’s the case.

1. We appreciate the criticality of excellent management and recognize that it is a completely different skill set from everything else we have learned in our careers.  This is like Step 1 in a typical “12-step program.”  First, admit you have a problem.  If you put together (a) management is important, (b) management is a different skill set, and (c) you might not be great at it, with the standard (d) you are an overachiever who likes to excel in everything, then you are setting the stage for yourself to learn and work hard at improving at management as a practice, which is the next item on the list.
2. We consistently work at improving our management skills.  We have a strong culture of 360 feedback, development plans, coaching, and post mortems on major incidents, both as individuals and as a senior team.  Most of us have engaged on and off over the years with an executive coach, for the most part Marc Maltz from Triad Consulting.  In fact, the team holds each other accountable for individual performance against our development plans at our quarterly offsites.  But learning on the inside is only part of the process.
3. We learn from the successes and failures of others whenever possible.  My team regularly engages as individuals in rigorous external benchmarking to understand how peers at other companies – preferably ones either like us or larger – operate.  We methodically pick benchmarking candidates.  We ask for their time and get on their calendars.  We share knowledge and best practices back with them.  We pay this forward to smaller companies when they ask us for help.  And we incorporate the relevant learnings back into our own day to day work.
4. We build the strongest possible second-level management bench we can to make sure we have a broad base of leadership and management in the company that complements our own skills.  A while back I wrote about the Peter Principle, Applied to Management that it’s quite easy to accumulate mediocre managers over the years because you feel like you have to promote your top performers into roles that are viewed as higher profile, are probably higher comp – and for which they may be completely unprepared and unsuited.  Angela Baldonero, my SVP People, and I have done a lot here to ensure that we are preparing people for management and leadership roles, and pushing them as much as we push ourselves.  We have developed and executed comprehensive Management Training and Leadership Development programs in conjunction with Mark Frein at Refinery Leadership Partners.  Make no mistake about it – this is a huge investment of time and money.  But it’s well worth it.  Training someone who knows your business well and knows his job well how to be a great manager is worth 100x the expense of the training relative to having an employee blow up and needing to replace them from the outside.
5. We are hawkish about hiring in from the outside.  Sometimes you have to bolster your team, or your second-level team.  Expanding companies require more executives and managers, even if everyone on the team is scaling well.  But there are significant perils with hiring in from the outside, which I’ve written about twice with the same metaphor (sometimes I forget what I have posted in the past) – Like an Organ Transplant and Rejected by the Body.  You get the idea.  Your culture is important.  Your people are important.  New managers at any level instantly become stewards of both.  If they are failing as managers, then they need to leave.  Now.

I’m sure there are other things we do to scale ourselves as a management team – and more than that, I’m sure there are many things we could and should be doing but aren’t.  But so far, these things have been the mainstays of happily (they would agree) proving our Board wrong and remaining intact as a team as the business grows.

The Gift of Feedback, Part IV

I wrote a few weeks ago about my live 360 – the first time I’ve ever been in the room for my own review discussion.  I now have a development plan drafted coming out of the session, and having cycled it through the contributors to the review, I’m ready to go with it.  As I did in 2008, 2009, and 2011, I’m posting it here publicly.  This time around, there are three development items:

1. Continue to spend enough time in-market.  In particular, look for opportunities to spend more time with direct clients.  There was a lot of discussion about this at my review.  One director suggested I should spend at least 20% of my time in-market, thinking I was spending less than that.  We track my time to the minute each quarter, and I spend roughly 1/3 of my time in-market.  The problem is the definition of in-market.  We have a lot of large partners (ESPs, ISPs, etc.) with whom I spend a lot of time at senior levels.  Where I spend very little time is with direct clients, either as prospects or as existing clients.  Even though, given our ASP, there isn’t as much leverage in any individual client relationship, I will work harder to engage with both our sales team and a couple of larger accounts to more deeply understand our individual client experience.
2. Strengthen the Executive Committee as a team as well as using the EC as the primary platform for driving accountability throughout the organization.  On the surface, this sounds like “duh,” isn’t that the CEO’s job in the first place?  But there are some important tactical items underneath this, especially given that we’ve changed over half of our executive team in the last 12 months.  I need to keep my foot on the accelerator in a few specific ways:  using our new goals and metrics process and our system of record (7Geese) rigorously with each team member every week or two; being more authoritative about the goals that end up in the system in the first place to make sure my top priorities for the organization are being met; finishing our new team development plan, which will have an emphasis on organizational accountability; and finding the next opportiunity for our EC to go through a management training program as a team.
3. Help stakeholders connect with the inherent complexity of the business.  This is an interesting one.  It started out as “make the business less complex,” until I realized that much of the competitive advantage and inherent value from our business comes fom the fact that we’ve built a series of overlapping, complex, data machines that drive unique insights for clients.  So reducing complexity may not make sense.  But helping everyone in and around the business connect with, and understand the complexity, is key.  To execute this item, there are specifics for each major stakeholder.  For the Board, I am going to experiment with a radically simpler format of our Board Book.  For Investors, Customers, and Partners, we are hard at work revising our corporate positioning and messaging.  Internally, there are few things to work on — speaking at more team/department meetings, looking for other opportunities to streamline the organization, and contemplating a single theme or priority for 2015 instead of our usual 3-5 major priorities.

Again, I want to thank everyone who participated in my 360 this year – my board, my team, a few “lucky” skip-levels, and my coach Marc Maltz.  The feedback was rich, the experience of observing the conversation was very powerful, and I hope you like where the development plan came out!

Half the Benefit is in the Preparation

This past week, we had what has become an annual tradition for us – a two-day Board meeting that’s Board and senior management (usually offsite, not this year to keep costs down) and geared to recapping the prior year and planning out 2009 together.  Since we are now two companies, we did two of them back-to-back, one for Authentic Response and the other for Return Path.

It’s a little exhausting to do these meetings, and it’s exhausting to attend them, but they’re well worth it.  The intensity of the sessions, discussion, and even social time in between meetings is great for everyone to get on the same page and remember what’s working, what’s not, and what the world around us looks like as we dive off the high dive for another year.

The most exhausting part is probably the preparation for the meetings.  We probably send out over 400 pages of material in advance – binders, tabs, the works.  It’s the only eco-unfriendly Board packet of the year.  It feels like the old days in management consulting.  It takes days of intense preparation — meetings, spreadsheets, powerpoints, occasionally even some soul searching — to get the books right.  And then, once those are out (the week before the meeting), we spend almost as much time getting the presentations down for the actual meeting, since presenting 400 pages of material that people have already read is completely useless.

By the end of the meetings, we’re in good shape for the next year.  But before the meetings have even started, we’ve gotten a huge percentage of the benefit out of the process.  Pulling materials together is one thing, but figuring out how to craft the overall story (then each piece of it in 10-15 minutes or less) for a semi-external audience is something entirely different.  That’s where the rubber meets the road and where good executives are able to step back; remember what the core drivers and critical success factors are; separate the laundry list of tactics from the kernel that includes strategy, development of competitive advantage, and value creation; and then articulate it quickly, crisply, and convincingly. 

I’m incredibly proud of how both management teams drove the process this year – and I’m charged up for a great 2009 (economy be damned!).

People First

I do not think it’s telling that my fourth post in this series of posts on Return Path’s core values (kickoff post, tag cloud) is something called People First.  Ok, it probably should have been the first post in the series.  To be fair, it is the first value on our list, but for whatever reason, the value about Ownership was top of mind when I decided to create this series.

Anyway, at Return Path,

We believe that people come first

And we aren’t shy about saying it publicly, either.  This came up in a lengthy interview I did with Inc. Magazine last year when we were profiled for winning an award as one of the top 20 small- and mid-sized businesses to work for in America.  After re-reading that article, I went back and tried to find the slide from our investor presentations that I referred to.  I have a few versions of this slide from different points in time, including one that’s simpler (it only has employees, clients, and shareholder on it) but here’s a sample of it:

That pretty much says it all.  We believe that if we have the best and most engaged workforce, we will do the best job at solving our clients’ problems, and if we do that well, our shareholders will win, too.

How does this “people first” mentality influence my/our day-to-day activities?  Here are a few examples:

• We treat all employees well, regardless of level or department.  All employees are important to us achieving our mission – otherwise, they wouldn’t be here.  So we don’t do a lot of things that other companies do like send our top performing sales reps on a boondogle together while the engineers and accountants slave away in the office as second-class citizens.  That would be something you might see in a “sales first” or “customer first” culture
• We fiercely defend the human capital of our organization.  There are two examples I can think of around this point.  First, we do not tolerate abusive clients. Fortunately, they are rare, but more than once over the years either I or a member of my senior team has had to get on the phone with a client and reprimand them, or even terminate their contract with us, for treating one of our employees poorly and unprofessionally. And along the same lines, when all economic hell broke loose in the fall of 2008, we immediately told employees that while we’d be in for a rough ride, our three top priorities were to keep everyone’s job, keep everyone’s compensation, and keep everyone’s health benefits. Fortunately, our business withstood the financial challenges and we were able to get through the financial crisis with those three things intact.
• We walk the walk with regard to employee feedback.  Everyone does employee satisfaction surveys, but we are very rigorous about understanding what areas are making people relatively unhappy (for us, even our poor ratings are pretty good, but they’re poor relative to other ratings), and where in the employee population (office, department, level) those issues lie.  We highlight them in an all-hands meeting or communication, we develop specific action plans around them, and we measure those same questions and responses the next time we do a survey to see how we’ve improved
• We invest in our people.  We pay them fairly well, but that’s not what I’m talking about.  We invest in their learning and growth, which is the lifeblood of knowledge workers.  We do an enormous amount of internal training.  We encourage, support, and pay for outside training and education.  We are very generous with the things that allow our employees to be happy and healthy, from food to fitness to insurance to time off to a flexible environment to allowing them to work from another office, or even remotely, if their lives require them to move somewhere else
• I spend as little time as I possibly can managing my shareholders and as much time as I can with employees and prospective employees.  That doesn’t mean I don’t interact with my Board members – I do that quite a bit.  But it does mean that when I do interact with them, it’s more about what they can do for Return Path and less about reporting information to them.  I do send them a lot of information, but the information flow works well for them and simultaneously minimizes my time commitment to the process:  (1) reporting comes in a very consistent format so that investors know WHAT to expect and what they’re looking at, (2) reporting comes out with a consistently long lead time prior to a meeting so investors know WHEN to expect the information, (3) the format of the information is co-developed with investors so they are getting the material they WANT, and (4) we automate as much of the information production as possible and delegate it out across the organization as much as possible so there’s not a heavy burden on any one employee to produce it
• When we do spend time with customers (which is hopefully a lot as well), we try to spread that time out across a broad base of employees, not just salespeople and account managers, so that as many of our employees can develop a deep enough understanding of what our customers’ lives are like and how we impact them

There are plenty of companies out there who have a “shareholder first” or “customer first” philosophy.  I’m not saying those are necessarily wrong – but at least in our industry, I’ll bet companies like that end up with significantly higher recruiting costs (we source almost half our new hires from existing employee referrals), higher employee churn, and therefore lower revenue and profit per employee metrics at a minimum.  Those things must lead to less happy customers, especially in this day and age of transparency.  And all of those things probably degrade shareholder value, at least over the long haul.