Small Thinking; why Austin entrepreneurs need to think bigger!

I teach a class at UT Austin called “lean startup”, I also help run the UT Texas Venture Labs and I volunteer at Capital Factory.  I mentor or advise dozens of startups.  I also run my own startup and have started 3.   All this is to say, I am plugged in to startups in Austin.  As with all my blog posts, this is not anything official from UT or anywhere else, just my own opinions.

I see probably 50 (or more) startup pitches per year.  One thing I have noticed recently, since Venture Capital has mostly dried up in Austin and worldwide, people have stopped thinking big.  I see so many deals where “the startup” is really “a product or service”.  For example, your app idea, your IoT idea, your new restaurant concept, and so on.  If it could be done on Kickstarter or bootstrapped in a year or two, it’s probably not big thinking.

This article is a call to get entrepreneurs to THINK BIGGER!  It is also hopefully a few tips for entrepreneurs to do just that.

First, let me explain what I consider ‘small thinking’.  Small thinking is when an entrepreneur is so focused on ‘the first product’ or ‘getting to revenue’ that they fail to communicate (or possibly fail to think) what the big picture is.  If you are not thinking past ‘your first move’, you are playing Startup Chess with a massive handicap.  If you don’t have ‘a second move’, you are failing to plan.  In both cases, you are not THINKING BIG!

Now, let me explain what I consider ‘big thinking’.  Big thinking isn’t doing, it’s thinking, and maybe talking.  Doing is what you are doing first and now (probably being Lean and Agile and building an MVP and focusing on Getting Customers and Feedback)… all very smart and important stuff.  However, while you are off ‘Doing’ that important stuff, you should be ‘thinking’ and probably ‘communicating’ your big vision a bunch more than you are.

Big thinking is having a big vision for wanting to ‘change’ something.  ‘Change’ is the operative word, and it implies a disruption in the status quo.  Big thinking is having ‘the end in mind’ before you begin.  This is more than a personal financial goal (which is also important).  This is understanding where your company might play in the big picture of the world.  This requires understanding ‘the world’ e.g. your market today, and where your market will be after you have risen to power and achieved your ‘big vision’.

Here’s the problem.  Many companies in Austin simply do not have this ‘big vision’ in mind for their company.  I ask you, how is your company going to change the world?  How are you going to “shake up” your industry.   If you do not have an answer, then you are not Big Thinking.

I urge you now, go out, and think bigger!  If you do it, WHILE staying focused on “DOING LEAN” there are so many awesome benefits.  Here are some personal examples I will share.

At my first company, Bigfoot Networks, our “big vision” was to End All Lag!  In fact, we even had a website, t-shirts and events, all around “Ending Lag Now!”.  We had a clear big picture mission, near 0-latency & 0-lag online gaming.  We were going to change the world… and as a result:

  1. The press cared about our story… even though many didn’t believe we could do it, it was still a story (rather than a non-story).
  2. Employees LIKED working for Bigfoot Networks… we all understood our mission and it gave us energy to tackle the day-to-day “Doing” because we knew where we were ‘Going’.  
  3. As a result, my attrition rate was lowest at Bigfoot Networks than any other company.  And my recruiting was the easiest.
  4. I was able to raise ‘big’ VC money, not because of our results (which were average), but because of our vision (and technology to back it up).
At Karmaback, my second company, our vision was also clear… we wanted to ‘Prove Social Marketing Works”, and create analytics behind social network marketing.  What is interesting here is that we did so many ‘day to day’ “Doing” that did not line up with this goal (to pay the rent) that we ultimately lost sight of this vision… when that happened, we had to sell the company.  It just wasn’t honest to say “this contracting job” had anything to do with our vision.  Had we stayed truer to our vision, Karmaback probably would have been even bigger and sold for much more.
So, I hope you can see where I am headed.  Have a big vision, execute on a plan towards doing it, and change the world!   If your company does NOT have a ‘change the world plan’… maybe it needs to get one.  Personally, I am on a mission to make sure all my endeavors have one.  At U.T. Austin, “what starts here changes the world”… and I’d like to see all of Austin take the charge and “THINK BIGGER”!
Harlan T. Beverly, PhD + Daughter, think BIGGER in Denali National Park

Losing your temper in business. The take 5 rule.

I’ve done it.  We’ve all done it.  At some point in your life, you lose  your cool.  You get mad, and you show it ~ sometimes quite visibly.  But what happens when you lose your temper in business?  What can happen?  And what are the long lasting effects of losing your temper in the office?  Here’s my experience and what you can do to avoid or minimize problems when it inevitably does happen to you.

1. I’ve lost my cool numerous times in the office, usually I get red in the face, start to frown dangerously, and get real quiet…. I can tell you from experience, that look usually shuts people down and RARELY does it get beyond this point for me.  Yah, it’s clear I’m mad, but people that have worked for me know that I’ll cool down in a few minutes… especially if….

1.b. The best tactic not to go beyond this point (turning red/ frowning) is to say “let’s take 5” and walk outside or get some water… remember to breathe, and that life is bigger than whatever you are mad at.  After 5 min. you should be cool enough to talk rationally again.

2. Occasionally, even after 5 min., I’m still angry.  Heck, I can still be mad after 2-days, and sitting down with that person again just sparks back up the anger.  I can’t keep “taking 5” constantly.   What to do?

2.b. The best thing to do is to try to take an ‘active listening‘ approach.  This involves starting at the beginning (after a take-5 or when you’re cooled down), asking again about the problem, then most importantly repeating the problem back to the person from their point of view.  They will feel heard and then they will be ready to listen.  Explain your problem.  Ask them to say it back to you.  Then ask them to explain what they want.  Say it back to them.  Tell them what you want.  Ask them to say it back to you.  Now find a solution.. you’ll both be read to figure it out.

3. So… uhoh.  I yelled.  I screamed.  I lost it.   Have I done that?  sure.  Just never let it get physical… more on that later.   All you did was yell… maybe you cursed… What do you do now???

3.b. My best advice is to quickly acknowledge you lost your cool and you need to “take 5”.  The world is not over.  This happens. Has happened to me.  Nothing too terrible is going to happen.  Follow 2.b above, and all will be okay.  After your take 5, acknowledge that you were wrong to yell, but you are still angry, and then move to active listening.

4. So, you got physical?  This has not happened to me.  Hopefully you’ve taken 5, got away from the situation.  In my companies, there is a rule: no-one can refuse or get upset about someone’s need to take 5.  I HAVE seen someone get physical at work 1 time.  I was the manager.

4.b. So, what happens if you get physical at work?   I can tell you what I did. I fired the person, immediately.  On the spot.  No regrets, no 2nd chances.  You get physical at work, you should be fired.  Period.  Hopefully your workplace has a take 5 rule… if not take it yourself.  Getting docked 5 minutes of time is better than being fired.

I hope this blog has left you with some thoughts.. feel free to post them below.  I respond to all comments and questions.

Green and Clean: A Management Empowerment Philosophy

One of the hardest things to do as a Manager is to empower, or trust, a subordinate or co-worker to be responsible, truly responsible, for decisions or stewardship of some aspect of work.  In my case, I am constantly struggling not to “take over”, “over-ride decisions”, and “hover over the shoulder”.  In truth, this is a big struggle for, I have to really fight it.  But this idea, the idea of empowerment, is one that research has shown is an important factor in: a.) building teams, b.) building a great company culture, and c.) having the best possible business outcomes.   
If you think about it, very few people want a manager that ‘hovers’ and over-rides decisions, and never allows you to have responsibility for anything.  And on top of that there are two practical concerns: you, an individual, simply can’t make every decision and be responsible for everything…. no person scales infinitely.  Second, your decisions will probably not be the best ones in every situation.  
Do you want unthinking automatons, or do you want an organization with people that love their job (a side-effect of true empowerment), and scale the organization into a well-oiled and grow-able machine?
One of the tools that helps me to remember to empower, and not ‘hover’ is the story of “Green and Clean” from from Stephen Covey’s The 7 Habits of Highly Effective People. I have excerpted the entire Green and Clean story from here below.  This story not only reminds me about the importance of Empowerment but also gives me (and hopefully you) the following tools to help me as a manager do Empowerment better:
  1. The principle of Stewardship (Empowerment) can be a very powerful bonding agent and growth agent for individuals.
  2. The first rule is to explain what Stewardship (Empowerment / Ownership) means…  I do this by making it a key component of company culture (or department culture).
  3. The second rule is to explain what Successful Stewardship looks like… get an agreement, ideally on paper, about what success looks like.
  4. The third rule is to pre-establish the “monitoring” or accounting policy, including frequency and type of reporting or inspection.  (this is the contract!)   This is the “Green and Clean” concept… defining success and empowering others to see it done.
  5. Fourth, offer help or assistance as a ‘virtual employee’ whenever it is needed… (but don’t let them ask you what to do!)!  Only let them ask you to do something. (this is a fine balance if dealing with children or young employees, since I try to do this with my kids as well… sometimes they need a little guidance about how to go about getting to success).
  6. Finally, don’t break the contract!  Don’t hover…. and most importantly DO NOT DICTATE THE METHODS!  Stick to the contract (this is hard to do).
Now, please, read the little story below from Dr. Covey, and I think you will not only see where the 6 points above come from, but also, be rewarded by understanding the powerful impact that this can have on an individual… and I can tell you from my experience… it has a powerful impact also on an organization.

Some years ago, I had an interesting experience in delegation with one of my sons. We were having a family meeting, and we had our mission statement up on the wall to make sure our plans were in harmony with our values. Everybody was there. 

I set up a big blackboard and we wrote down our goals- the key things we wanted to do - and the jobs that flowed out of those goals. Then I asked for volunteers to do the job. 

"Who wants to pay the mortgage?" I asked. I noticed I was the only one with my hand up. 

"Who wants to pay for the insurance? The food? The cars?" I seemed to have a real monopoly on the opportunities. 

"Who wants to feed the new baby?" There was more interest here, but my wife was the only one with the right qualifications for the job. 

As we went down the list, job by job, it was soon evident that Mom and Dad had more than sixty-hour work weeks. With that paradigm in mind, some of the other jobs took on a more proper perspective. 

My seven-year-old son, Stephen, volunteered to take care of the yard. Before I actually gave him a job, I began a thorough training process. I wanted him to have a clear picture in his mind of what a well-cared-for yard was like, so I took him next door to our neighbor's. 

"Look, son," I said. "See how our neighbor's yard is green and clean? That's what we're after: green and clean. Now come look at our yard. See the mixed colors? That's not it; that's not green. Green and clean is what we want. Now how you get it green is up to you. You're free to do it any way you want, except paint it. But I'll tell you how I'd do it if it were up to me." 

"How would you do it, Dad?" 

"I 'd turn on the sprinklers. But you may want to use buckets or a hose. It makes no difference to me. All we care about is that the color is green. Okay?" 

"Okay." 

"Now let's talk about 'clean,' Son. Clean means no messes around - no paper, strings, bones, sticks, or anything that messes up the place. I'll tell you what let's do. Let's just clean up half of the yard right now and look at the difference." 

So we got out two paper sacks and picked up one side of the yard. "Now look at this side. Look at the other side. See the difference? That's called clean." 

"Wait!" he called. "I see some paper behind that bush!" 

"Oh, good! I didn't notice that newspaper back there. You have good eyes, Son." 

"Now before you decide whether or not you're going to take the job, let me tell you a few more things. Because when you take the job, I don't do it anymore. It's your job. It's called a stewardship. Stewardship means 'a job with a trust.' I trust you to do the job, to get it done. Now who's going to be your boss?" 

'You, Dad?" 

"No, not me. You're the boss. You boss yourself. How do you like Mom and Dad nagging you all the time?" 

"I don't." 

"We don't like doing it either. It sometimes causes a bad feeling doesn't it? So you boss yourself. Now, guess who your helper is." 

"Who?" 

"I am," I said. 'You boss me." 

"I do?" 

'That's right. But my time to help is limited. Sometimes I'm away. But when I'm here, you tell me how I can help. I'll do anything you want me to do." 

"Okay!" 

"Now guess who judges you." 

"Who?" 

'You judge yourself." 

"I do?" 

'That's right. Twice a week the two of us will walk around the yard and you can show me how it's coming. H ow are you going to judge?" 

"Green and clean." 

"Right!" 

I trained him with those two words for two weeks before I felt he was ready to take the job. Finally, the big day came. 

"Is it a deal, Son?" 

"It's a deal." 

"What's the job?" 

"Green and clean." 

"What's green?" 

He looked at our yard, which was beginning to look better. Then he pointed next door. 'That's the color of his yard." 

"What's clean?" 

"No messes." 

"Who's the boss?" 

"I am." 

"Who's your helper?" 

'You are, when you have time." 

"Who's the judge?" 

"I am. We'll walk around two times a week and I can show you how it's coming." 

"And what will we look for?" 

"Green and clean." 

At that time I didn't mention an allowance. But I wouldn't hesitate to attach an allowance to such a stewardship. 

Two weeks and two words. I thought he was ready. 

It was Saturday. And he did nothing. Sunday.. .nothing. Monday. ..nothing. As I pulled out of the driveway on my way to work on Tuesday, I looked at the yellow, cluttered yard and the hot July sun on its way up. "Surely he'll do it today," I thought. I could rationalize Saturday because that was the day we made the agreement. I could rationalize Sunday; Sunday was for other things. But I couldn't rationalize Monday. And now it was Tuesday. Certainly he'd do it today. It was 
summertime. What else did he have to do? 

All day I could hardly wait to return home to see what happened. As I rounded the corner, I was met with the same picture I left that morning. And there was my son at the park across the street playing. 

This was not acceptable. I was upset and disillusioned by his performance after two weeks of training and all those commitments. We had a lot of effort, pride, and money invested in the yard and I could see it going down the drain. Besides, my neighbor's yard was manicured and beautiful, and the situation was beginning to get embarrassing. 

I was ready to go back to gofer delegation. Son, you get over here and pick up this garbage right now or else! I knew I could get the golden egg that way. But what about the goose? What would happen to his internal commitment? 

So I faked a smile and yelled across the street, "Hi, Son. How's it going?" 

"Fine!" he returned. 

"How's the yard coming?" I knew the minute I said it I had broken our agreement. That's not the way we had set up an accounting. That's not what we had agreed. 

So he felt justified in breaking it, too. "Fine, Dad." 

I bit my tongue and waited until after dinner. Then I said, "Son, let's do as we agreed. Let's walk around the yard together and you can show me how it's going in your stewardship." 

As we started out the door, his chin began to quiver. Tears welled up in his eyes and, by the time we got out to the middle of the yard, he was whimpering. 

"It's so hard, Dad!" 

What's so hard? I thought to myself. You haven't done a single thing! But I knew what was hard - self management, self-supervision. So I said, "Is there anything I can do to help?" 

"Would you, Dad?" he sniffed 

"What was our agreement?" 

'You said you'd help me if you had time." 

"I have time." 

So he ran into the house and came back with two sacks. He handed me one. "Will you pick that stuff up?" He pointed to the garbage from Saturday night's barbecue. "It makes me sick!" 

So I did. I did exactly what he asked me to do. And that was when he signed the agreement in his heart. It became his yard, his stewardship. 

H e only asked for help two or three more times that entire summer. He took care of that yard . He kept it greener and cleaner than it had ever been under my stewardship. He even reprimanded his brothers and sisters if they left so much as a gum wrapper on the lawn. 

Trust is the highest form of human motivation. It brings out the very best in people. But it takes time and patience, and it doesn't preclude the necessity to train and develop people so that their competency can rise to the level of that trust. 

I am convinced that if stewardship delegation is done correctly, both parties will benefit and ultimately much more work will get done in much less time. I believe that a family that is well organized, whose time has been spent effectively delegating on a one-to-one basis, can organize the work so that everyone can do everything in about an hour a day. But that takes the internal capacity to want to manage, not just produce. The focus is on effectiveness, not efficiency. 

Certainly you can pick up that room better than a child, but the key is that you want to empower the child to do it. It takes time. You have to get involved in the training and development. It takes time, but how valuable that time is downstream! It saves you so much in the long run. 

This approach involves an entirely new paradigm of delegation. I n effect, it changes the nature of the relationship: The steward becomes his own boss, governed by a conscience that contains the commitment to agreed upon desired results. But it also releases his creative energies toward doing whatever is necessary in harmony with correct principles to achieve those desired results. 

The principles involved in stewardship delegation are correct and applicable to any kind of person or situation. With immature people, you specify fewer desired results and more guidelines, identify more resources, conduct more frequent accountability interviews, and apply more immediate consequences. With more mature people, you have more challenging desired results, fewer guidelines, less frequent accountability, and less measurable but more discernible criteria. 

Effective delegation is perhaps the best indicator of effective management simply because it is so basic to both personal and organizational growth. 

The key to effective management of self, or of others through delegation, is not in any technique or tool or extrinsic factor. It is intrinsic-- in the Quadrant II paradigm that empowers you to see through the lens of importance rather than urgency.

Story by Dr. Stephen Covey The 7 Habits of Highly Effective People

How Intel Corp. Won my Heart as an Employee

Have you ever had that feeling that “work sucks”?  Ever felt ‘stuck’ in a job and wishing you had a better boss, a better role, a better pay, etc.?   Now, when you changed jobs… ever wish for the old days?   I can tell you unequivocally that I have felt both feelings, but my time as a Chip Designer and Chip Architect at Intel Corp. was most decidedly different than any job hence.

So, what was it about working at Intel Corp. that won my heart?

I began working at Intel in Oregon in 1999.  I quickly learned 3 things: 1. Intel takes training seriously.  2. Intel cares a lot about their employees.  3. Intel truly does believe in culture.

The New Hire Orientation at Intel was extensive and serious.  They taught you all about the Intel Corporate Values and the Intel Benefits and such…  It was 3 days of serious reading, lecture and work… all well organized and seemingly useful.  I had serious doubts about Intel’s supposed “Values” however…. did companies really do that?

Well, I was wrong. Intel takes values very seriously.  Not only did they pass out a badge with their values on the back, hang signs everywhere, and talk about their values constantly… but also:
    1. their 360 feedback process for raises and evaluation was centered primarily on our adherence to Intel’s Values.
   2. The training didn’t end.  I was required to take 1 or 2 courses from “Intel U” every quarter…and sometimes more.
   3. As I proceeded into more management type roles, I was required to take a course that stuck with me to this day: 7-Habits of Highly Effective People.  An excellent course, from Dr. Stephen Covey himself.

And then I realized suddenly, I was LIVING Intel’s Values:
   1. I was taking smart risks at work, and getting rewarded with promotions.
   2. I was helping keep Intel a great place to work, participating in and organizing company-sponsored events and joining the Emergency Response Team.
   3. I was involved in Intel organized community events and “clean-ups”.
   4. I was focused on Quality and Innovation.
   5. I was keeping open and direct in my communications.

Wow, this culture of Intel had invaded my soul… and everyone around me, from my coworkers to my bosses to Executive VPs were doing the same.  All on the same page about what makes Intel Great.

So now, as I reflect on those days, I realize, what made Intel win my heart was simple… they really meant those “core values” they preached to us in orientation.  They LIVED by those values, and so did I.  It felt good to be part of something “real”… that was just what they said it was: they practiced what they preached: and that’s how they’ve kept a lead on an industry for more than 50 years.

Culture is not corny to Engineer-types.

Many people think that the “culture”, “mission statement”, “values”, of a company is ‘corny’. We are often embarrassed by it, feeling it a kind of fake thing. If this is you, you may be in the wrong company. A strong company culture is absolutely the #1 most important thing for a businessman and especially a CEO to consider and stick to. For engineer-type minds, it sets a standard of measurement for the intangible. All our lives, we’ve been graded in two ways: factual ‘right’ answers (Objective) and ‘intangible’/feel answers (Subjective). All our lives, we engineer-types have failed (or not excelled) at the subjective. Culture should not be a corny thing to engineer-types, it should be thing #1. Most (if not all) of the engineers I’ve hired know this, and that’s a MAJOR reason the decide to work for (really with) me.

There are companies known for great corporate culture: National Instruments, Intel, and Google to name a few. People, myself included, seek out these companies and prefer to work at them. I spent many years at Intel blissfully unaware of my under-payment, because I was happy. I thrived in the culture that put a standard of measure on the subjective: and my performance ratings prove it.

More than just ratings and rankings though, a company culture sets forth a ‘norm’, a code of conduct, a code of honor, that permeates who you are as a company. In many companies that have “weak” corporate culture, this is not a good thing. Yes, they have “the mission statement and values” list like everyone else, but the measurement system is broken. Instead of ‘calling it’ when someone breaks the code or doesn’t live up to the corporate culture: it goes ignored if results are good. In fact, in most companies throughout the USA, results matter most of all (enter Enron). I believe, as do most Engineer-type minds, that the ends do not always justify the means: and that doing something ‘right’ and winning is better than doing it ‘wrong’ and winning bigger.

Culture should be used to select who you hire, who you fire, and how you measure success. In fact, when a company gets bogged down in ‘the hard stuff’ and can’t find its way, looking to culture there is always a way out. Culture can also seriously impact how others view you.

The Rich Dad’s Advisor: Building a Business Team that Wins is a practical guide to how to build, and more importantly how to enforce, a company culture.

For myself, I believe I have found the perfect company culture for both success and for my personal belief structure (an excellent match)… more on that on another post. In the mean-time here is Intel’s excellent corporate culture statements, which I can say generally speaking, was heavily enforced and rewarded in a very positive manner. (no I’m not re-joining Intel at this time, though I would work there again in a heartbeat for the right position).

Customer Orientation

We strive to listen and respond to our customers, suppliers, and stakeholders; clearly communicate mutual intentions and expectations; deliver innovative and competitive products and services; make it easy to work with us; and be a vendor of choice.

Discipline

We strive to conduct business with uncompromising integrity and professionalism; ensure a safe, clean, and injury-free workplace; make and meet commitments; properly plan, fund, and staff projects; and pay attention to detail.

Quality

We strive to achieve the highest standards of excellence; do the right things right; continuously learn, develop, and improve; and take pride in our work.

Risk Taking

We strive to foster innovation and creative thinking, embrace change and challenge the status quo, listen to all ideas and viewpoints, learn from our successes and mistakes, and encourage and reward informed risk taking.

Great Place to Work

We strive to be open and direct, promote a challenging work environment that develops our diverse workforce, work as a team with respect and trust for each other, win and have fun, recognize and reward accomplishments, manage performance fairly and firmly, and be an asset to our communities worldwide.

Results Orientation

We strive to set challenging and competitive goals, focus on output, assume responsibility, constructively confront and solve problems, and execute flawlessly.

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