Book Short: Bringing it on Home
Silos, Politics and Turf Wars: A Leadership Fable About Destroying the Barriers That Turn Colleagues Into Competitors wasn’t Patrick Lencion’s best book, but it wasn’t bad, either. I think all six of his books are well worth a read (list at the bottom of the post). And in fact, they really belong in two categories.
The Three Signs of a Miserable Job (post, link), The Five Temptations of a CEO (post, link
), and The Four Obsessions of an Extraordinary Executive (post, link) are all related around the topic of management.
Death by Meeting (post, link), The Five Dysfunctions of a Team (post, link), and Silos, Politics and Turf Wars, on the other hand, are all related around the topic of leading a team and healthy team dynamics. This latest book, which is the last of his six books for me, rounds out this topic nicely, in a fun “novel” format as is the case with his other books.
The book hammers home the theme of an executive team needing to first be a team and then second be a collection of group heads as a means of breaking down barriers that exist inside organizations. It also lays out a framework for creating high-level alignment inside a team. The framework may or may not be perfect — we are using a different one at Return Path (the Balanced Scorecard) that accomplishes most of the same things — but for those companies who don’t have one, it’s as good as any.
The most compelling point in the book, though is the point that teams often make the most progress, change the most, and do their best work when their backs are up against a wall. And the point Lencioni makes here is — “why wait for a crisis?”
At any rate, another good, quick book, and absolutely worth reading along with the others, particularly along with the other two closely related ones. I’m definitely sorry to be done with the series. We may try the “field guide” companion to The Five Dysfunctions and see how the practical exercises work out.
The full series roundup is:
Book Short: Vulnerability Applied to Leadership
Getting Naked: A Business Fable About Shedding The Three Fears That Sabotage Client Loyalty (book, Kindle), is Patrick Lencion’s latest fable-on-the-go book, and it’s as good a read as all of his books (see list of the ones I’ve read and reviewed at the end of the post).
The book talks about the power of vulnerability as a character trait for those who provide service to clients in that they are rewarded with levels of client loyalty and intimacy. Besides cringing as I remembered my own personal experience as an overpaid and underqualified 21 year old analyst at how ridiculous some aspects of the management consulting industry are…the book really made me think. The challenge to the conventional wisdom of “never letting ‘em see you sweat” (we *think* vulnerability will hurt success, we *confuse* competence with ego, etc.) is powerful. And although vulnerability is often uncomfortable, I believe Lencioni is 100% right – and more than he thinks.
First, the basic premise of the book is that consultants have three fears they need to overcome to achieve nirvana – those fears and the mitigation tactics are:
- Fear of losing the business: mitigate by always consulting instead of selling, giving away the business, telling the kind truth, and directly addressing elephants in the room
- Fear of being embarrassed: mitigate by asking dumb questions, making dumb suggestions, and celebrating your mistakes
- Fear of feeling inferior: mitigate by taking a bullet for the client, making everything about the client, honoring the client’s work, and doing your share of the dirty work
But to my point about Lencioni being more right than he thinks…I’d like to extend the premise around vulnerability as a key to success beyond the world of consulting and client service into the world of leadership. Think about some of the language above applied to leading an organization or a team:
- Telling the kind truth and directly addressing elephants in the room: If you’re not going to do this, who is? There is no place at the top of an organization or team for conflict avoidance
- Asking dumb questions: How else do you learn what’s going on in your organization? How else can you get people talking instead of listening?
- Making dumb suggestions: I’d refer to this more as “bringing an outside/higher level perspective to the dialog.” You never know when one of your seemingly dumb suggestions will connect the dots for your team in a way that they haven’t done yet on their own (e.g., the suggestions might not be so dumb after all)
- Celebrating your mistakes: We’re all human. And as a leader, some of your people may build you up in their mind beyond what’s real and reasonable. Set a good example by noting when you’re wrong, noting your learnings, and not making the same mistake twice
- Taking a bullet for your team, making everything about your team and honoring your team’s work: Management 101. Give credit out liberally. Take the blame for team failings.
- Doing your share of the dirty work: An underreported quality of good leaders. Change the big heavy bottle on the water cooler. Wipe down the coffee machine. Order the pizza or push the beer cart around yourself. Again, we’re all human, leaders aren’t above doing their share to keep the community of the organization safe, fun, clean, well fed, etc.
There’s a really powerful message here. I hope this review at least scratches the surface of it.
The full book series roundup as far as OnlyOnce has gotten so far is:
Book Short: Wither the Team
I keep expecting one of his books to be repetitive or boring, but Patrick Lencioni’s The Five Dysfunctions of a Team held my interest all the way through, as did his others. It builds nicely on the last one I read, Death by Meeting (post, link).
I’d say that over the 9 1/2 years we’ve been in business at Return Path, we’ve systematically improved the quality of our management team. Sometimes that’s because we’ve added or changed people, but mostly it’s because we’ve been deliberate about improving the way in which we work together. This particular book has a nice framework for spotting troubles on a team, and it both reassured me that we have done a nice job stamping out at least three of the dysfunctions in the model and fired me up that we still have some work to do to completely stamp out the final two (we’ve identified them and made progress, but we’re not quite there yet.
The dysfunctions make much more sense in context, but they are (in descending order of importance):
- Absence of trust
- Fear of conflict (everyone plays politically nice)
- Lack of commitment (decisions don’t stick)
- Avoidance of accountability
- Inattention to results (individual ego vs. team success)
For those who are wondering, the two we’re still working on at the exec team level here are conflict and commitment. And the two are related. If you don’t produce engaged discussion about an issue and allow everyone to air their opinions, they will invariably be less bought into a decision (especially one they don’t agree with). But we’re getting there and will continue to work aggressively on it until we’ve rooted it out.
There’s one other interesting takeaway from the book that’s not part of the framework directly, which is that an executive has to be first and foremost a member of his/her team of peers, not the head of his/her department. That’s how successful teams get built. AND (this is key) this must trickle down in the organization as well. Everyone who manages a team of group heads or managers needs to make those people function well as a team first, then as managers of their own groups second.
At any rate, another quick gem of a book. I’m kind of sorry there’s only one left in the series.
So far the series includes:
I have one or two more to go, which I’ll tackle in due course and am looking forward to.
Book Short: The Joys of Slinging Hash
Patrick Lencioni’s The Three Signs of a Miserable Job is a good read, as were his last two books, The Five Temptations of a CEO (post, link), and The Four Obsessions of an Extraordinary Executive (post, link). They’re all super short, easy reads (four express train rides on Metro North got the job done), with a single simple message and great examples. This one is probably my second favorite so far.
This book, which has a downright dreary title, is great. It points to and proposes a solution to a problem I’ve thought about for a long time, which is how do you create meaning for people in their day to day work when they’re not doing something intrinsically meaningful like curing a disease or feeding the homeless. His recipe for success is simple:
– Get people to articulate the relevance in their jobs…the meaning they derive out of their work…an understanding of the people whose lives are made better, even in small ways, by what they do every day
– Get people to measure what they do (duh, management 101), IN RELATION TO THE RELEVANCE learnings from the last point (ahh, that’s an interesting twist)
– Get to know your people as people
All of these are things you’d generally read in good books on management, but this book ties them together artfully, simply, and in a good story about a roadside pizza restaurant. It also stands in stark contrast to the book I reviewed and panned a few days ago by Jerry Porras in that it is nothing but examples from non-celebrities, non-success stories — ordinary people doing ordinary jobs.
Brad has blogged glowingly about Death by Meeting, so I’ll probably make that my next Lencioni read next month, with two more to go after that.
Book Short: I Wish This Existed 12 Years Ago
Brad Feld has been on my board for over a decade now, and when he and his partner Jason Mendelson told me about a new book they were writing a bunch of months ago called Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist, I took note. I thought, “Hmmm. I’d like to be smarter than my lawyer or venture capitalist.”
Then I read an advanced copy. I loved it. At first, I thought, I would really have benefited from this when I started Return Path way back when. Then as I finished reading it, I realized it’s just a great reference book even now, all these years and financings later. But as much as I enjoyed the early read, I felt like something was missing from the book, since its intended audience is entrepreneurs.
Brad and Jason took me up on my offer to participate in the book’s content a little bit, and they are including in the book a series of 50-75 sidebars called “The Entrepreneur’s Perspective” which I wrote and which they and others edited. For almost every topic and sub-topic in the book, I chime in, either building on, or disagreeing, with Brad and Jason’s view on the subject.
The book is now out. As Brad noted in his launch post, the book’s table of contents says a lot:
- The Players
- How to Raise Money
- Overview of the Term Sheet
- Economic Terms of the Term Sheet
- Control Terms of the Term Sheet
- Other Terms of the Term Sheet
- The Capitalization Table
- How Venture Capital Funds Work
- Negotiation Tactics
- Raising Money the Right Way
- Issues at Different Financing States
- Letters of Intent – The Other Term Sheet
- Legal Things Every Entrepreneur Should Know
Fred has posted his review of the book as well.
Bottom line: if you are an aspiring or actual entrepreneur, buy this book. Even if you’ve done a couple of financings, this is fantastic reference material, and Brad and Jason’s points of view on things are incredibly insightful beyond the facts. And I hope my small contributions to the book are useful for entrepreneurs as well.
I love stealing/borrowing other people’s good ideas for management and leadership when they’re made public, and I always encourage others to do so from me. I call it “plagiarizing with pride.” So I was intrigued when I saw a new way of doing all-hands meetings published by my friend Daniel Odio (DROdio) on his founder community called FounderCulture. You can see the original post here.
We’ve experimented with different formats and cadences for all-hands meetings over the years. They tend to vary with the size of the company and complexity of the material to cover. Larger companies usually fall into the rhythm of doing quarterly all-hands meetings sometime after the end of the quarter, usually around a Board meeting, with a quarterly recap and forecast for next quarter.
But for early stage companies, there’s no tried-and-true method. We struggled with that for a while at Bolster. Weekly felt too much. Quarterly felt like too little. It seemed weird for me or my co-founders to just have a meeting where we talked at everyone…and it also seemed weird to just host an “open mic night” type meeting. Then I saw DROdio’s video, and we adapted it. It’s working pretty well for us. Here’s what we do in what we’re calling our Open All-Hands Meeting:
- We hold an all-hands meeting every Monday for :30
- A different team member is responsible for being the host/chair/emcee for each meeting
- We run the meeting off of a dedicated Trello board with specific columns of information. Everyone is invited to contribute to the Trello board in the days leading up to the meeting. The columns are:
- Values-Kudos-Good News: Anyone can call out anyone for doing something that demonstrates one of the company’s values, that is just a big thank you, or that is some other piece of karmic goodness they want to share
- Wins: All client wins are shown here with some detail, each in its own card with its owner highlighted
- #MAD: This is where we trade items on which we Made A Decision during the prior week, big or small. We’ve always struggled with the best way to keep everyone informed on things like this…and this works really well for that purpose
- Learnings/Product Ideas: Anyone can populate this with anything they want as they go about their work and either come across learnings or product ideas they want to share
- Announcements: Pretty self-explanatory, any corporate announcement, new employee introductions, etc.
- Swim Lane Updates: Each we, we ask one or two of our functional or project areas to do a deep dive update — Product, Finance, Sales, Marketing, Ops, etc. — and this is also where we’ll do product demos of newly released functionality
- Permanent Items: this isn’t a column that’s read…it just warehouses things we want on the board like the schedule of hosts, schedule of swim lane updates, instructions for running the meeting, recordings of prior meetings
- BOLSTER 2022: this isn’t a column that’s read…it contains our mission, values, strategy, and key strategic initiatives and metrics for the year
- Archive: this isn’t a column that’s read…it just contains the prior week’s items
- There’s a series of light integrations between Slack, Hubspot, and Trello to automatically populate Trello based on certain channels, keywords, and emojis. Every week, the board is automatically wiped clean after the meeting
- The host moves the meeting from column to column and card to card, sometimes reading the cards, and sometimes asking the person who submitted the card to read it or give color commentary on it
- I do jump in from time to time, as do some of my co-founders or our other leaders, to give extra commentary or amplify something or help connect the dots. But that’s about as formal as my role gets other than…
- …when we do have a quarterly board book and board meeting, I host that one meeting and recap the meeting, ask other leaders to comment on specific topics, and facilitate Q&A on the materials we send out ahead of time. So I’m hosting 4 meetings per year
- The host can add a personal touch to any meeting. Custom wallpaper for the Trello board. Asking everyone in the company who has a pet to send in a photo of the pet ahead of time and introducing their furry friends during the meeting. Playing intro or outro music to fit the occasion. Doing spot surveys or game show questions to keep things lively. Interviewing new team members. Asking everyone to do a one-sentence “here’s what I’m working on this week” at the end of the meeting
- Finally, the host passes the baton from one person to the next each week. No one can escape this responsibility!
In addition to the Open All-Hands Meeting format, I send the company an email every Friday with some musings on the prior week. The content of these varies widely – from “what I did last week,” to “here’s something I saw that’s interesting,” to welcoming new team members with their bios, to customer testimonials. Sometimes other founders write these. They’re a good way to add a personal touch to the operating system of the company — and we also send these to our board and major shareholders every week so they, too, can keep a finger on the pulse.
These two things together are proving to be a good Operating System for keeping everyone informed, aligned, and connected on a weekly basis.
In Defense of Email, Part 9,732
I commented today on our partner Blue Sky Factory’s CEO, Greg Cangialosi’s excellent posting in defense of email as a marketing channel called Email’s Role and Future Thoughts. Since the comment grew longer than I anticipated, I thought I’d re-run parts of it here.
A couple quick stats from Forrester’s recent 5-year US Interactive forecast back up Greg’s points con gusto:
– 94% of consumers use email; 16% use social networking sites (and I assume they mean USE them – not just get solicitations from their friends to join). That doesn’t mean that social networking sites aren’t growing rapidly in popularity, at least in some segments of the population, and it doesn’t mean that email marketing may not be the best way to reach certain people at certain times. But it does mean that email remains the most ubiquitous online channel, not to mention the most “pull-oriented” and “on demand.”
– Spend on email marketing is $2.7b this year, growing to $4.2b in 2012. Sure, email by 2012 is the smallest “category” by dollars spent, but first of all, one of the categories is “emerging channels,” which looks like it includes “everything else” in the world other than search, video, email, and display. So it includes mobile as well as social media, and who knows what else. Plus, if you really understand how email marketing works, you understand that dollars don’t add up in the same way as other forms of media since so much of the work can be done in-house.
What really amazes me is how all these “web 2.0” people keep talking about how email is dying (when in fact it’s growing, albeit at a slower rate than other forms of online media) and don’t focus on how things like classifieds and yellow pages are truly DYING, and what that means for those industries.
I think a more interesting point is that in Forrester’s forecast, US Interactive Marketing spend by 2012 in aggregate reached $61b, more than triple where it is today — and that the percent of total US advertising going to interactive grows from 8 to 18 over the five years in the forecast.
The bigger question that leaves me with is what that means for the overall efficiency of ad spend in the US. It must be the case that online advertising in general is more efficient than offline — does that mean the total US advertising spend can shrink over time? Or just that as it gets more efficient,
marketers will use their same budgets to try to reach more and more prospects?
Book Short: Best Book Ever
The Hard Thing About Hard Things, by Ben Horowitz, is the best business book I’ve ever read. Or at least the best book on management and leadership that I’ve ever read. Period.
It’s certainly the best CEO book on the market. It’s about 1000 times better than my book although my book is intended to be different in several ways. I suppose they’re complementary, but if you only had time left on this planet for one book, read Ben’s first.
I’m not even going to get into specifics on it, other than that Ben does a great job of telling the LoudCloud/Opsware story in a way that shows the grit, psychology, and pain of being an entrepreneur in a way that, for me, has previously only existed in my head.
Just go buy and read the book.
Book Short: Multiplying Your Team’s Productivity
No matter how frustrated a kids’ soccer coach gets, he never, ever runs onto the field in the middle of a game to step in and play. It’s not just against the rules, it isn’t his or her role.
Multipliers: How the Best Leaders Make Everyone Smarter by Liz Wiseman and Greg McKeown (book, Kindle) takes this concept and drives it home. The book was a great read, one of the better business books I’ve read in a long time. I read a preview of it via an article in a recent Harvard Business Review (walled garden alert – you can only get the first page of the article without buying it), then my colleague George Bilbrey got the book and suggested I read it. George also has a good post up on his blog about it.
One of the things I love about the book is that unlike a lot of business books, it applies to big companies and small companies with equal relevance. The book echoes a lot of other contemporary literature on leadership (Collins, Charan, Welch) but pulls it into a more accessible framework based on a more direct form of impact: not long-term shareholder value, but staff productivity and intelligence. The book’s thesis is that the best managers get more than 2x out of their people than the average – some of that comes from having people more motivated and stretching, but some comes from literally making people more intelligent by challenging them, investing in them, and leaving them room to grow and learn.
The thesis has similar roots to many successful sales philosophies – that asking value-based questions is more effective than presenting features and benefits (that’s probably a good subject for a whole other post sometime). The method of selling we use at Return Path which I’ve written about before, SPIN Selling, based on the book by Neil Rackham, gets into that in good detail. One colorful quote in the book around this came from someone who met two famous 19th century British Prime Ministers and noted that when he came back from a meeting with Gladstone, he was convinced that Gladstone was the smartest person in the world, but when he came back from a meeting with Disraeli, he was convinced that he (not Disraeli) was the smartest person in the world.
Anyway, the book creates archetypal good and bad leaders, called Multipliers and Diminishers, and discusses five traits of both:
- Talent Magnet vs. Empire Builder (find people’s native genius and amplify it)
- Liberator vs. Tyrant (create space, demand the best work, delineate your “hard opinions” from your “soft opinions”)
- Challenger vs. Know-It-All (lay down challenges, ask hard questions)
- Debate Maker vs. Decision Maker (ask for data, ask each person, limit your own participation in debates)
- Investor vs. Micromanager (delegate, teach and coach, practice public accountability)
This was a great read. Any manager who is trying to get more done with less (and who isn’t these days) can benefit from figuring out how to multiply the performance of his or her team by more than 2x.
Run, Brad, Run!
A few years ago we announced our support of a charity called the Accelerated Cure Project for Multiple Sclerosis (see the post about it here and learn more about Accelerated Cure here). While we have a strong culture of giving back to the community at Return Path and do that in several ways, we chose this charity as the main beneficiary of our corporate philanthropy efforts for three reasons:
- We wanted to support research into finding a cure for MS to honor and support one of our earliest colleagues, Sophie Miller Audette who was diagnosed with MS about 5 years ago (and is still going strong as one of our key sales directors!) – and since then, two other members of the Return Path extended family have also been diagnosed with MS
- We wanted to support an organization with a focused mission and one where our contributions could really make a difference
- Accelerated Cure has a very entrepreneurial, innovative culture that’s consistent with our own – and a solution-oriented approach to their cause that resonates with our business philosophy
We got introduced to Accelerated Cure by Brad Feld, one of Return Path’s venture investors, who is a friend of Art Mellor, Accelerated Cure’s founder and CEO. Brad’s an interesting guy for many reasons, but one reason is that he has a goal of running 50 marathons (one in each state) by the time he’s 50. He has eight years and 40 marathons to go, and to make it a little more significant he decided to try and drum up some sponsorships for his quest and donate the money to Accelerated Cure.
Return Path has decided to be one of Brad’s anchor tenant sponsors by pledging $1,000 for every race he completes. This is half of Brad’s goal of $2,000 per race, and we hope it will inspire others to donate so he can beat his goal. Of course, Brad wants to do more than just run these marathons – he wants to, well, accelerate his performance. So, taking a page out of the VC handbook, we’re setting up an incentive program for Brad of an additional $500 donation for every race that he completes in less than four hours.
Besides liking both Brad and Accelerated Cure, this particular vehicle for donating money is especially meaningful to us. A good number of Return Path employees past and present have run marathons and even competed in triathlons and Ironman competitions (including yours truly, but in a way that certainly makes me want to keep my day job). And Seth Matheson, Accelerated Cure’s new development director who has MS, is an avid marathoner who is contemplating an Ironman competition himself. And as I always tell our team members, running a startup is a marathon, not a sprint!
You can follow Brad’s progress – and make a donation yourself – here.
Book short: Blink
Blink, by Malcolm Gladwell, is a must read for marketers, entrepreneurs, and VCs alike, just as is the case with Gladwell’s first book, The Tipping Point.
Where The Tipping Point theorizes about how humans relate to each other and how fads start and flourish in our society, Blink theorizes about how humans make decisions and about the interplay between the subconscious, learned expertise, and real-time inputs. But Gladwell does more than theorize — he has plenty of real world examples which seem quite plausible, and he peppers the book with evidence from some (though hardly a complete coverage of relevant) scientific and quasi-scientific studies.
Blink for Entrepreneurs/CEOs: What’s the most critical lesson in Malcolm Gladwell’s Blink, as it relates to entrepreneurs/CEOs? It’s about bias in hiring. Most of us make judgments about potential new hires quite quickly in the initial interview. The symphony example in the book is the most painfully poignant — most major symphony orchestras hired extremely few women until they started conducting auditions behind a screen. It’s not clear to me yet how to stop or even shrink hiring bias, but I suspect the answer lies in pre-interview work around defining specific criteria for the job and scoring all candidates on the same set of criteria.
Blink for VCs: What’s the most critical lesson in Malcolm Gladwell’s Blink, as it relates to VCs? It’s about picking companies to back. Even VCs who are virtuosos, as Gladwell would call them, can make poor judgments on companies to back based on their own personal reaction to a company’s product or service, as opposed to the broader marketplace’s reaction. Someone poured a whole lot of money into Webvan, Pets.com, eToys, and the like.
Blink for Marketers: What’s the most critical lesson in Malcolm Gladwell’s Blink, as it relates to Marketers? It’s the importance of multivariate regression testing. No, really, I’m not kidding, although there’s no doubt a less math-y way of saying it — “test everything.” The Coca-Cola Company thought they were doing the right thing in creating New Coke because they were losing the Pepsi Challenge. But what they didn’t realize was that Pepsi (unintentionally or not) had suckered them into believing that the single-sip test was cause for reengineering a century of product, when in reality Coke was probably just being out-advertised. Christian Brothers Brandy was going out of its mind losing market share to competitor E&J until someone realized that they just needed to change the shape of their bottle.
If you haven’t yet done so, go buy the book! It’s a very quick read and incredibly thought provoking. And if you haven’t yet read The Tipping Point, it’s a must as well.
