Time

We must always operate with a sense of urgency. Time is the enemy in everything we do. The one way we are created equal is we only have 24 hours in a day. The smartest person in the world hasn’t figured out how to change that. That’s why customer focus is critical. We take our eye off our customer at our peril: someone else may be looking at her just as we turn away.

The Product Maker and the Operator

Revenue is neither a raison d'être nor a dirty word.

The Product Maker dreams his dream of the new and of the wondrous. He cares little for the status quo. The Operator must deliver the product to a target audience that is known or to be found, and then get that audience to realize that the product will enrich their lives. So whereas the Product Maker can invent the wants and wishes of the target market, the Operator must find ways to show that the product will satisfy the target market if they try it. This is a complementary relationship.

Picture in your mind an ice cream soda. The guy who first put that cherry on top of the whipped cream, to delight the customer, was, in his own way, a genius. That delight does something: it causes people to want to repeat the experience. It's a growth hack.

I once worked for a founder who insisted we didn’t have customers, and even if we did he would never demean himself by trying to satisfy them.

There’s no magic in the word “customer”. We can call our target market anything we choose, so long as we know we are talking about the group(s) from whom our revenue comes. Doctors call them patients. Lawyers call them clients. Even prostitutes call them tricks.

There’s no magic in the word “satisfying”. Perhaps it is too limp a word. Perhaps it should be delighting, charming, overwhelming, titillating, innovating, or revolutionizing.

“If our customers are thrilled, delighted, and charmed, but if for some reason fail to be satisfied to the point of spending money, then we will not have moved forward in attaining the purposes that our stakeholders expect from us. ”

Regardless, a culture that focuses on the market it serves, namely customers, and tries to get them to take action which generates revenue, namely satisfying, is a culture that is likely to be successful. Our goal, with respect to our work, is not to satisfy, but to do much more. As we go about our tasks we should innovate and create earth-shaking works. Throughout, our team must be focused on the wants and needs, known and anticipated, of our target audience.

This is the basis for long-term success. High-growth operators focus on revenue growth, not profitability. There are many investments that we want to make; they may generate operating losses in the near term. So long as those investments serve the long-term goal of “satisfying customers” they will be worth it. 

The only way we’ll know whether the seeds that we plant bear fruit is by seeing whether they generate revenue. If our customers are thrilled, delighted, and charmed, but if for some reason fail to be satisfied to the point of spending money, then we will not have moved forward in attaining the purposes that our stakeholders expect from us. We do all the things we dream of because we believe someone will recognize us the traditional way: by providing revenue. 

If Steve Jobs delighted only himself, you wouldn’t know Steve Jobs. If Apple’s products failed to sell, Apple would cease to exist. If Apple ceased to exist, Steve Jobs wouldn’t have had the resources to continue delighting himself. Revenue was not the reason for his existence. Revenue was the proof of the impact of his existence.

If we lose sight of the purpose of the investments we make and innovate for its own sake, if we seek to delight solely because it pleases us to do so, we will have turned our focus inward, and by doing so forsake the crucial piece of the puzzle. It is the customer who must be satisfied. Our delight must come from delighting others.

Ten Rules

1. Focus unswervingly on the customer.
2. Make and beat audacious goals.
3. Hire the best and brightest, without equivocation, and exceed their expectations by over-delivering on what motivates them.
4. Invest continuously in learning, mentoring, and development.
5. Help the people around you excel, and in turn excel because of the help of the people around you.
6. Trust in the abilities of one's colleagues.
7. Reward and emphasize personal accountability.
8. Rip off band-aids quickly and cut loose dead wood.
9. Act with urgency.
10. Be human.

(Number 11 would be don't mix metaphors like I did in number 8.)

On Candor

Build a culture centered around speaking the truth, and you create an environment that nourishes courage, encourages risk taking, and regularly pushes your business through new thresholds.

Look into the companies you admire and you'll notice candor sits at the core of the culture of these great organizations. Without it, ideas are squashed before they see the light of day, while those ideas that do surface don't face hard questions from day one. Candor is also the one problem solving technique that works in any situation. 

“Candor is the one problem solving technique that works in any situation. ”

As a COO I am constantly collecting information across the organization, strengthening the decision making ability of the executive team and gathering the data I need to build and iterate the systems, processes, and organizational structures necessary to support rapid growth. By bringing what is seen and thought throughout the org into the light, decision makers are best informed as to the risks and opportunities they face.

As a leader my responsibility is to tell hard truths to my team and to my CEO. I can only do that when folks truly believe that I have their best interests at heart and my intention is to push them to being their better selves. 

Below follow some of the principles for candor I have imparted to my teams, principles I do my best to follow in order to create high-performing environments built on reservoirs of trust.

Pursue Self-Awareness

A culture of candor can only exist when the example is set from the top. There can be no space between what we say we value and what is actually demonstrated. It therefore necessarily starts with my being self-aware and confident enough to discuss what I'm good at and bad at. That builds trust. It continues with openly assessing how my decisions and choices pan out, and sharing the lessons I'm learning along the way. If I can't manage myself, how I can manage others?

Self-awareness is my number one test in interviews. I want to build a team of people who are continuously exploring their gifts and their shortcomings. Since the best teams are heterogeneous, candidates who know their strengths and weaknesses help me build a team of diverse skill-sets and life experiences. These same people understand what motivates their decision-making. As in everything hiring related, you must identify what you want your company to be and then hire the folks with the DNA to make it so.

Admit What You Don't Know

I have one cardinal rule: If you don't know, say so. There is no crime in missing a deadline, screwing up, or being wrong on an educated assumption. The only sin is not admitting what you don't know and trying to fudge your way through it. Unknowns and uncertainty are everyday facts at a high-growth company. You will never be penalized for not having learned something yet. 

Be Vulnerable

To learn from your mistakes they must be put on the table to be discussed in the light of day. Vulnerable leaders who repeatedly demonstrate an ability to candidly assess and discuss their own weaknesses and failures build powerful bonds with the teams they lead. Similarly, vulnerability builds trust between teammates, and trust ensures strong, long-lasting relationships characterized by the strength to persevere through the inevitable roller coaster that is startup life.

It's not a weakness to show weakness. The fear of failure gets in the way of creativity. Once you accept perfection is an impossibility and that you don't need it to be successful, you will start risking more to achieve more. You'll discover step functions in your performance and results, proving yourself infinitely more valuable than conservative Joe Perfect ever could be. 

Create a Safe Environment

I want – no need – truth spoken to power. Sometimes it hurts and sometimes it takes time to process. But it's never not worth it. When tough news is delivered plainly the problem gets addressed faster and we can all get back to building and doing what we do best. As a leader, set the example. When your teammates take the same risk, reward them.

A safe, candid environment brings more ideas into meaningful conversations. The key skills needed to create a safe environment for your team are (1) to listen, without judging or feeling judged, (2) to be critical, without being judgmental, (3) to propose solutions, rather than simply criticize, and (4) to disagree, without making the other party defensive. Without these your candid culture will devolve into an intolerably competitive one. 

Be Nice

Candor can be the most powerful instrument in your toolbox, but don't be a jerk. Blunt isn't the same as candid, and you have to have a strong EQ radar to deliver the right message in the right way to each person you interact with. Otherwise the message gets lost due to the messenger. Being candid is about being open with your cares and concerns, and giving advice with pure intentions. We are actually showing respect when we assume someone has the strength to hear the truth and the character to learn from it. 

Tell a Story

You can't deliver all of the news to all of the team all of the time. Sometimes taking the time to craft a story with meaning from your raw data or feedback is essential to getting your message across. Everything in life starts with communication. Be sure to get the right information to the right people at the right time in a manner they can digest. 

Have Courage

We all desire to surround ourselves with exceptionally smart and curious people driven to succeed and unafraid of obstacles. That's the primary appeal of startups for me. Let your team know that blowing smoke up your bum isn't what you need to be the best leader, and certainly isn't the key to their achieving their goals and ambitions. 

Invest in the work necessary to build a candid culture by setting an example every day at the top and rewarding model behavior at all levels of the org. Reinforce that the courage necessary to speak one's mind is strength you want to invest in. You will unlock ideas and your talent will have the best chance of reaching their potential.

On Recruiting, Part One

We can be sure we are building a successful recruitment strategy and brand when a candidate we reject refers a candidate we hire. 

My recruiters and team members have heard me preach variations of this theme for years. I usually get a strange look the first time they hear me say it. My point is simple: if we spend our time focusing on details and dignity in the candidate experience, the payoff for all parties will be substantial. And when a recruiter closes their first successful rejected candidate referral, the lightbulb goes off and the purpose of all the work we put into recruiting becomes clear.

“Every candidate who applies to your company isn’t just a prospective employee. They’re a prospective customer.”

Recruiting is about relationships. Every candidate who applies to your company isn't just a prospective employee. They're a prospective customer. Evangelist. Source of talent. 

And never, ever judge a book by its cover.

The basic premise is simple: treat everyone awesome. You don't know who the A+ player is before she walks in the door. And you don't know who the B- player is friends with when they walk out the door. Every candidate that works their way through your recruitment process will undoubtedly share their impressions and experiences with their friends. This will impact your brand.

Be sure to keep in mind these important facts: engineers know other engineers, designers know other designers, product managers know other product managers, and marketers know other marketers. Duh.

Details matter:

• Where do you place the job ad? What does it look like? What does it say? Did you ask why in answering all three questions?
• Sweat the structure and copy of the job description. What do you mean to say? What values must be transmitted? How are you representing your culture? What are you choosing to leave out and why (I often make choices here to test for what questions candidates ask)? Are you flighting multiple JDs for the same position to attract different applicant pools?
• How have you designed your interview welcome experience before candidates arrive? What does the candidate receive beforehand to set their expectations and put them at ease? Do they have a single point of contact who is regularly in touch, particularly the day before the interview?
• How have you designed your interview welcome experience once they arrive at your office? Where are they seated to wait? Do you want them to see the buzz of the office or have privacy to collect their thoughts? Have you provided a WiFi password, an iPad to pass the time, or some reading material on the company? 
• Does the day start with a member of the recruiting team taking them to the interview room and reviewing the day's agenda, offering to answer any questions, and generally putting the candidate at ease? Did you offer them a drink and show them where the restrooms are?  Is food or lunch on the agenda? Are they in a glass box where everyone can walk by and stare at them or do they have some privacy?
• Do interviewers introduce themselves, explain their role in the company, and set out their goals for the interview and agenda for the hour? Do they look candidates in the eye and shake hands like a grown up? Do they leave their phones back on their desk? Leave enough time for questions? Provide a card or email address for follow up questions (and to make it easy for the candidate to send a thank you note)? Are candidates offered a rest and a drink before the next interviewer enters the room?
• Does the day end with the same member of the recruiting team debriefing the candidate? Providing a sales pitch? Collecting feedback on the process and on the individual interviewers? Does the recruiter make notes of new or unanswered questions?
• Within 24 hours has the recruiter followed up with answers to those questions? Is the candidate thanked for their time by the company? Have you asked the candidate how we did (perhaps with a short feedback survey)? Solicited them for further questions?
• Within 72 hours is the candidate's standing in the process clearly communicated? Are next steps delivered in a timely manner? Are expectations properly set.
• Etc.

Dignity matters:

• Are you respecting the candidate's time and other commitments?
• Are you answering their questions honestly, transparently, and in a timely manner?
• Is the entire process timely? Does it feature regular and excellent communication?
• Are rejections delivered humanely and verbally by the recruiter or hiring manager who knows the candidate best and shepherded them thru the interview process? Did you acknowledge their strengths? Did you thank them for their time?
• Are candidates offered an opportunity to receive feedback on their interview process so they too can learn and take steps towards being their best self and achieving their career goals? 
• Etc.

It is deeply satisfying in building a company to deliver an awesome candidate experience to someone, unfortunately having to reject them but doing so with compassion and dignity, and having them in turn recommend your company to someone they feel would be a better fit than they were. When candidate pools are tight and markets are competitive, every detail counts.