Keys of a good CEO – Fred’s Thoughts

Fred Wilson is known in the tech world and venture capitalist world because he has been very involved in both for many years & posts lots of content on his personal website, or blog.

Today he has a great post in a series titled MBA Mondays about the role of a CEO.

It tells of the basic criteria that he evaluates CEOs on:

“A CEO does only three things. Sets the overall vision and strategy of the company and communicates it to all stakeholders. Recruits, hires, and retains the very best talent for the company. Makes sure there is always enough cash in the bank.”

I tried to shorten that and not lose any meaning, with no great success.

Any organization will falter or fail if someone does not fulfill those three tasks, and they really are keys to success.

Another way to look at it is:

• promote where we are going – general direction
• get the right people on the bus
• make sure the bus does not run out of gas

As far as “all the other stuff that a CEO could do” … that is addressed in the post, and I agree.

Thanks to Fred Wilson for taking the time to share his thoughts to others.

Starting a Nitch Site – Pat’s method

Many people ask me about starting website.

Today I read a post on The Smart Passive Income Blog about the starting out process Pat went through recently.

I have gone through and coached others through the same process, with some exceptions.

Here are some highlights:

Dreamhost

Pat mentions Bluehost, many others rave about them too.

Long ago I looked at all the options equivalent to those two. I read lots of good and negative reviews of all the webhosting options.

Dreamhost won me over with their Virtual Private Server (VPS  or DreamhostPS) option they were developing. At that point I had played with Dreamhost, a client was using them, and liked the systems, but the VPS option meant to me -> if the site gets too big for the shared server (the style all those options are) – Dreamhost had an option I could turn on with a press of a button and not have to move to another system manually.

Both have great affiliate programs – all links to them should be assumed to be my affiliate link – but that is also why they are raved about so much.

Plugins

I use Google XML Sitemaps and a Google Analytics plugin, but I am currently evaluating a couple and not sure which I will use moving forward.

All in One SEO Pack is not needed in my case simply because I use StudioPress themes, which have all the really good functionality built into the themes.

There are some more plugins that are my standard, but this is not the section I really want to spend time on.

Monetization?

The method depends on your end goals.
I wish he had posted more on this topic, but the idea for finding direct advertisers & affiliate opportunities might make me re-open an AdSense account.

Niche Site Content

The Most Important Section.
The reason you go to a website, and return to the ones you do, is the content.

The method for content development he is using is – Shared Journey. This is similar to what Cliff Ravenscraft is doing with The Virtual Assistant Podcast, and many others.

The general idea with Shared Journey is “I am on a journey to learn about ABCD, as I travel, I am sharing what I learn with you.”

Lastly

I love this mindset:

Remember, it’s all about working hard now, so you can reap the benefits later.

With all that said, I look at a pile of little nitch domain names I have & am inspired to do a little with some – I think I’ll start with Krav Maga Ally & know others who could easily do the same.

Thanks again to Pat for all he shares.

Inventing Merit Badge

Today a copy of Scouting (magazine) came in & as I was flipping thought I pick up on this article titled “Mother of Inventing” in the What’s New area. (article not online yet)

It tells the story of how there use to be an Inventing MB – that 10 scouts earned before it went away.

Inventing MB is back and this time the Scouts don’t have to “apply for and receive a U.S. patent on an invention.”

Looking though the requirements, there is some basic knowledge, but what interests me are things like:

• Choose a commercially available product that you have used on an overnight camping trip with your troop. Make recommendations for improving the product, and make a sketch that shows your recommendations.
• Build a working prototype of the item you invented for requirement 6*. Test and evaluate the invention – [including] cost, usefulness, marketability, appearance, and function. Describe how your original vision and expectations for your invention are similar or dissimilar to the prototype you built.
• Participate with a club or team (robotics team, science club, or engineering club) that builds a useful item.

I am thrilled that the Boy Scouts of America is working towards helping those involved in scouting to go though the process of solving problems in the world around them.

Understanding Leadership & Others – T.D. Jakes

T.D. Jakes
Combustible Passion

When people are passionate about what they do – they are more effective at what they do.

People follow people who move.

Gift Assessments
A vital thing to do, especially on yourself.
Know who you are & what you do well.

Life should be lived so that you look forward to most days … if not, something in your life might need to change (career, job, focus)

Two types of leaders
- builders
- bankers

- builders -
They can take anything and build a fire out of it

- bankers -
Those who can cause the fire to continue through the night

Builders like builders.
Bankers like bankers.

If you only bring around you people who do what you do – they will not complete you.

Builders need bankers, bankers need builders.

How do you manage someone who is passionate in a way you do not understand?
See: tension notes from Andy Stanley

You are led best by people you easily read.
Leaders must be transparent enough so that followers can know and read you.

Leadership is Hard
When it is the hardest, be thankful you have your faith & relationship with Jesus.  ‘It’s an advantage Christians have over non-Christians.’

[Summit Reports]

Leading Work – Jack Welch

Leader to Leader : Jack Welch & Bill Hybels

Authenticity is vital.

The job of a leader is to draw out the best ideas and actions from the great people around them.

Jack used different words, but talked about giving feedback to people in your org.

Not differentiating does not help – the people generally know – anyway.

Jack does not like meetings after meetings that are griping & whining. Those views that should be brought up in the meetings.

You cannot reward the top 20% of your org enough.

If you cannot reward your best people – you will lose your best people.

There are forms of currency other than money.

“You rarely move too fast.”

Build people up – encourage your followers.

Hiring is hard; succession is brutal.

Celebrations
Must be done regularly.
You need to celebrate small victories.

[Summit Reports]

Sustainable Giving – Blake Mycoskie

Blake Mycoskie & Darren Whitehead
Making Conscious Capitalism Work: The TOMS Shoes Story

“People want to be a part of something … ”

“… incorporate giving in what you do … ”

Completely dependent on donations = Unsustainable.

“I wrote in my journal” -it’s interesting how many times successful people do this.

Q: Why not just start a non-profit?
We have been able to help 20 times the number of kids & are sustainable. No begging for money.

If you want to create change, you have to ask others to go with you.

April 5th – barefoot day

Here are two more thoughts on a much more personal level:

I want to do stuff that will cause people to cry because they are happy.

I am working on a new company idea – what if:
100% of the profits are invested in businesses and causes to help others achieve their dreams, especially learning to be independent & specialized.

[Summit Reports]

AMP Motivators – Dan Pink

Daniel Pink (author & speech writer)
What Motivates Us: Not What You Think

We have biological drives; that is part of what it is to be human …

But …

Humans are more complex then that.

A second drive is reward & punishment.

A Third drive: interest, learn, connect, meaning, larger then ourselves

This third drive is often ignored by orgs.

Orgs often attempt to stop the biological drive and emphasize the Rewards & Punishment drive.

If … Then Rewards
Work well for simple tasks

Don’t work well if creativity is needed – causes tunnel vision & to miss stuff.

The Story of Red Gate Software
UK Company
Had a sales force that started gaming the system.

Company makes sales commission structure more complex.

The sales staff adapted to the new set of incentives / game.

Idea:
- eliminate sales commission
- raise base salary
- profit sharing at end of year

“The problem is that that other guy will never go for it because …”

Wrong Assumptions
1. Human beings are machines
2. Human beings are blobs

Machines – can be controlled if the right buttons are pressed.

Blobs – passive, does nothing if not forced by some outside force

Look at kids – or – look at yourself

Motivators
1. Autonomy
2. Mastery
3. Purpose

1. Autonomy
Management is a technology invented in the 1850’s designed to get compliance.

Best results are not due to compliance, but engagement.

Autonomy over:
- time
- team
- task
- technique

Good assumption: people are active and engaged and do good work

20% time or FedEx days

2. Mastery
Making progress is the most motivating element in days.

What if a the role of a Manager is to help people make progress?

Feedback – in order to gage progress one must have feedback

Orgs generally suck at feedback – look at your last performance review.

You need to take ownership of generating factual feedback for yourself.

3. Purpose

When purpose beyond money is lost (leaving only profit motive) bad things happen.

Listen to the pronouns when people describe who they work for.
We = high preforming
They = yeah …

You cannot force “we” on people, you have to change what you do tomorrow. Take small steps in your own world.

Everything great starts with a conversation.

[Summit Reports]

Free Waterproof Growth – Terri Kelly

Terri Kelly & Jim Mellado
When Leaders Emerge: The Story of W.L. Gore & Associates (GORE-TEX)

“It’s not the technology that is the key for success, it’s the culture.”

The right foundation & values were important to the founders.

The founder (Bill) learned about collaboration & small teams at Dupont.

Q: what is different about Gore?
A collaborative and team focused culture – people are vested & feel like they can make a difference.

Ladder vs. Lattice structure
Lattice – everyone is connected with everyone

Leader in Gore = must make changes through influence.

Gore focuses on that anyone getting on their bus must have common values.

They think about brand equity, and long term in addition to the finances.

“Associates want to be involved in projects where they can provide the greatest impact.”
This is done through systems & incentives. The team must rank the teammates on who has had the greatest impact.

There are many paths a person can take.

Sponsor
Each person in Gore has a sponsor who’s job is to help the individual to succeed, grow, & develop. They have a different level of trust.

Has helped speed up the growth of the associates.

There are leaders too, and a leader of an associate can also be that person’s sponsor, but not always.

200 Cap
There is a rough cap on number of associates in one factory –  200 .

This helps keep the desired culture.

Water Line
Think of a boat.

If a risk is below the water line on a ship – it is greater. There is lots a room to take risks above the water line that will not take down the entire ship if it does not work.

Q: what is your roll as CEO?

Stay out of the way

Make sure we stay true to our values

Help leaders

Strategic planning

[Summit Reports]

Unplaned Wilderness Break – Jeff Manion

Jeff Manion

The Land Between

The land between is a period of wandering in the wilderness; a time without a clear end point – or – seemingly lack of progress.

“For now”

A common phrase is when asked about your live, you have a “for now” as a part of your explanation.

While in The Land Between – look for:

- a new, better & bigger vision

- a lesson to learn

- a skill to grow

- a habit to break

- an error to correct

- transformational growth within yourself

Many times our journey in the land between is needed because we are not ready for the new land of plenty.

- a better understanding of the world beyond yourself

this is not automatic

It takes work & at times, being intentional about it

Fight against complaining (remember counting your blessings – in a spreadsheet – Jim Collins)

The land between is a difficult time, but a natural time & a time where you have major choices, especially in the attitude you choose.

The land between is a good time to explore your faith, how you see the world, the relationships you choose & priorities.

There is more to life than just go … go … go.

[Summit Reports]

Tension for Success – Andy Stanley

Andy Stanley

The Upside of Tension

Myth: if you are a great leader (or org) you solve all your problems and are tension free.

Truth – great leaders leverage tension & problems to be a growth engine.

I. Every org has problems that shouldn’t be solved and tension that shouldn’t be resolved.

The third option is to manage problems or tensions.

If you “resolve” some tensions, you will create new tension.

If you “solve” a problem incorrectly, there will be more problems & barriers to progress.

Progress depends not on the resolution of those tensions but on the successful management of those tensions.

II. To distinguish between problems to solve and tensions to manage, ask the following:

A. Does this problem or tension keep resurfacing?

B. Are there mature advocates for both sides?

C. Are the two sides really interdependent?

III. The role of leadership is to leverage the tension to the benefit of the org.

A. Identify the tension to be managed in your org.

B. Create terminology.

If there are two options & two opinions – it becomes win-loose. This is where a third term is needed.

C. Inform your core team.

D. Continually give value to both sides.

E. Don’t weigh in too heavily based on your personal biases.

Understand the up side of the opposite side.

Understand the down side of your side.

F. Don’t allow strong personalities to rule the day.

I need passionate people who will champion their side, but are also mature enough to understand the tension & bigger picture.

G. Don’t think in terms of balance. Think rhythm.

As a leader, never try to be “fair”.

Conclusion:

As a leader, one of the most valuable things you can do for your org is differentiate between tensions your org will always need to manage vs. problems that need to be solved.

[Summit Reports]

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