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Thursday, 17 April 2008

MARCH TO IPO (Part of a series): What interview questions do you ask?

Today this question came from an entrepreneur in India who is on a hot streak with a rapidly growing startup:

"I'm a regular reader of your blog and your insights has helped me tremendously. Here is one more thing I want to ask you:

1. How do I go about interviewing candidates for positions like VP/CXO for Mktg, finance, sales etc.?
2. What questions will help me assess them right?
We have a recruiter firm to shortlist profiles, but they aren't involved in the actual interview process. I involve my key employees and investors for assessing them and then compare notes to get a 360 degree feedback to get better perspective.
Still, I believe there is scope to improve the process. Your feedback will help me make a better team."

Okay, here is how I'll respond to his email: Put yourself in this situation. Since yesterday's blog, you have decided to focus on getting the best people you can find. You may be pre-seed or as in this case, you are suddenly hot and need that missing core team of aces to help you convert from small to world-class. And you have run out of able friends and colleagues for candidates. Next come the strangers (resumes emailed by other strangers, the harried recruiters). What do you ask the candidates to be more likely you are getting the people you want. the ones now represented by their resumes and references?

Here is what I suggest:

  1. Use the Search feature on my blog to look up "interview". You will find several suggestions. One popular set of interview tips is from a classic posted on 2006 October 24.
  2. Trust your intuition more than resumes and references. You are the expert on the chemistry in your company. You understand how people will fit your company's working culture. You know what kind of person you need for your special business.
  3. Ask sensitive and personal questions. You are going to become very intimate with your employees over the next half decade. Get to know their inner secrets before you hire them. "What makes you mad?" "What kind of person irritates you?" and then "Why?" Listen well and you'll learn a lot about the person. This is especially important to do with Asian startups.
  4. Ask about their coping with failures. Your startup is a child that will get into trouble. Expect a few scrapped knees. But you want vice presidents who can keep the child from getting into serious trouble. Hire people that know how to keep the child from heading off to play on a dangerous highway.
  5. Discuss issues rather than grill a person. Open sharing of ideas about how to solve real problems gives both you and the candidate a chance to be real people discussing important business issues. The goal is not to see who is stronger. Rather, you want to observe how the person thinks. This is relaxing to the candidate and more likely to open up the strong skills of the person for you to observe. And the candidate is more likely to admit shortcomings.
  6. Ask "What do you think you can do to help me succeed?" That is an open ended question that is less threatening and offers the chance for the person to be creative during the interview. You will often be surprised at what you hear. I have. And I often get some great ideas as a bonus.
  7. Ask yourself "When I am traveling, is this a person whom I can trust to be wise running the business while I am away?" The CEO does not run the business. There is too much for that person to do (constant communicating with investors, raising fresh capital, and endless interviewing and hiring all take 40% of the CEOs time away from managing the startup). The VPs have to be able to operate with very little guidance day to day. Look for such people. They are gems. Keep thinking about how this person would work with you out of touch and that person and others like that in the office. Then you can pick wisely.
  8. Be prepared to answer your own question. Able candidates will expect you to respond to any question you ask them. Don't be surprised when the ask you to. Be ready. It's fun to do.

BOTTOM LINE: Get your interview questions ready. Practice them on a friend. Get so good that you can ask your favorite key questions anywhere, anytime, of any candidate. I've seen people interviewed on elevators in hotels, while waiting for an airplane and during soccer matches. Your quick questions lead to discovery of outstanding people who were later hired. As CEO, you'll be interviewing the rest of your life. Become a  master, a black belt, of interviewing. Then you'll add the most powerful element to building your unfair advantage: Great people. I wish you The Best!

Wednesday, 16 April 2008

MARCH TO IPO (Part of a series): Finding GREAT people is Task Number 1

"Where do I find the people I need for my startup? How do I attract them to work for my new enterprise?"

Here are some tips from serial entrepreneurs I respect:

  • Finding people will take 20% of your time as CEO for the rest of your startup life. Every day you will be recruiting. It will become as natural to you as brushing your teeth. It will be as important to you as breathing (without it, your startup will die).
  • Start early -- years early. Great startup CEOs line up their core team and key techies many years before doing the startup. Yes, I said years, not months. That is how they decide that the people are great people. They know they will work well together on the job.
  • Get the people before the money. Read yesterday's blog and think about it. Great investors invest in people, not ideas. Just ask them if you do not believe me.
  • People you know are better than strangers. It would be foolish and dangerous to leave your children with a baby sitter you did not know. Your startup is also precious. Serial entrepreneurs do not turn their new enterprises over to be managed by strangers.
  • Ability is more important than friendship. You may have to fire the person. That's how to lose friends. Better to focus on the ability of a person than a relationship. Don't pick them for religious reasons, or because they love one brand of computer over another, or because they saved your life once. They have to deliver results. Chose ability.
  • "A people hire B people hire C people". That adage was cited recently in a private dinner for serial entrepreneurs that I was moderating. Time brings compromise. It is inevitable. Fight it. Keep the average as high as you can as long as you can.
  • Do not compromise on quality. Serial entrepreneurs always tell me "I have learned bitter lessons about compromising on people: in a word, don't. Ever." Enough said. It is hard to do because you desperately need to fill the open position.

So where do you find the missing people? Here is the pattern that I see working in successful startups:

  1. Start with people you know well because you have worked with them before.This is the quickest way to get going with quality people.
  2. Fan out from your core team, get the entire company recruiting. You hired A people so get them to find more A people. Serial entrepreneur E.C. built an entire company that way, without a penny of venture capital. Amazing. But it works.
  3. Birds of feather produce flocks of startup people. For instance, your university alumni organization. And small groups of people at work who like to talk quietly about startups. Forums about new enterprises attract startup people you can meet. Find out where they hang out and go there. Become one of them.
  4. Recruit a great HR person, even if part-time. The HR stands for Heavy Recruiter. Able and eager to find the missing great people. That's the payoff for a true HR person in an early stage startup. Soon it will become a full time position because you'll be doubling the number of your employees each year.
  5. Choose your recruiters carefully. Once you have cash, you'll grow fast and soon need to user recruiters. Pick them wisely. Serial entrepreneurs choose recruiters like they choose people, after interviewing them in depth.
  6. Be patient with your company recruiting. The chances are low of you finding great people arriving in your Job email box. But it will happen. So read them all. I'll never forget John Morgridge CEO of Cisco sitting reading resumes the day I came into his office to interview him. Every resume is valuable. The haystack has some great gems hidden in it. It's your job to find them.
  7. Your unfair advantage is the honey that attracts the bees. The great story that attracts the great people is about your unfair advantage. Prepare it well. Then have fun telling it. Over and over and over and over.

BOTTOM LINE: Great startups are built with great recruiting by the CEO and core team. It is a skill you've got to have. Learn it at work so when you are ready for your startup, you can be an outstanding recruiter. Plan recruiting weekly at your startup. Discuss recruiting daily. Make it a way of life for every employee. Get an army of great people recruiting for you. Your startup will then be built with great people. Leave the rest for your competition. When you can do this, you'll be well on your way to building your unfair competitive advantage.

Wednesday, 19 March 2008

ADDING A REAL CEO: When is best?

"When do you think we should add a heavyweight to our startup? We are techies, building a prototype with angel money. A person with great credentials is available: from the right industry, decades of experience, has great connections. Is it too early? What do you think?"

I get that question often because it is so common and so important.

Here is my response to the founder CEO:

Dear B.,

When you think about adding people to your management team, start by thinking in two categories: (1) marquee and (2) workers. Famous people seldom work, they talk. Working people are seldom famous with marquee recognition but get a lot of things done.

Then think about what thing brings your company the most credibility: (1) people saying they support the company or (2) business results. Supporters include investors and advisers. Results include competitive market positioning and sales progress.

Then decide on what mix your company needs at the early stage it is in.

I have found it best to find working people who get results. Pay them what it takes to attract and retain them. Marquee names typically run out of Rolodex contacts very quickly and are expensive for what they deliver. Work and results trump fame and names.

BOTTOM LINE: Pick people for what world-class results they can bring to your company. Betting on a few contacts to save the day is a sign of desperation. Watching a team of great workers build a great company that customers race to is an inspiration (to investors, employees and bloggers). I put my money on workers and results. Think before you make your decision. It is a key to building your unfair competitive advantage.

 

Tuesday, 11 March 2008

CREATIVE STARTUP PEOPLE (Number 10 last of a series) : Do you have what they have?

Today I'll move on to the final trait on the list for creative people, applying it to startups (see the introductory note at the end of this blog). The quotes are from the book cited in the endnote.

======================================================

TRAIT NUMBER 10: Openness and sensitivity of creative individuals often exposes them to suffering and pain yet also a great deal of enjoyment.

Application: Startups are both brutal and beautiful. Come prepared to experience both emotions, daily.

“Electrical engineer and prolific inventor Jacob Rabinow put it this way: 'Inventors have a low threshold of pain. Things bother them.' A badly designed machine causes pain to an inventive engineer, just as the creative writer is hurt when reading bad prose. Being alone at the forefront of a dicipline also makes you exposed and vulnerable. Eminence invites criticism and often vicious attacks. When an artist has invested years in making a sculpture, or a scientist in developing a theory, it is devastating if nobody cares."

"Divergent thinking is often perceived as deviant by the majority, and so the creative person may feel isolated and misunderstood."

"Perhaps the most difficult thing for a creative individual to bear is the sense of loss and emptiness experienced when, for some reason or another, he or she cannot work. This is especially painful when a person feels one's creativity drying out."

"Yet when a person is working in the area of his or her expertise, worries and cares fall away, replaced by a sense of bliss. Perhaps the most important quality, the one that is most consistently present in all creative individuals, is the ability to enjoy the process of creation for its own sake."

BOTTOM LINE: "These ten pairs of contrasting personality traits [in this series] might be the most telling characteristic of creative [startup] people. These conflicting traits are usually difficult to find in the same person. Yet without the second pole, new ideas will not be recognized. And without the first, they will not be developed to the point of acceptance. Therefore, the novelty that survives to change a domain is usually the work of someone who can operate at both ends of these polarities -- and that is the kind of person we call 'creative'." CEOs of startups find themselves pulling out their hair daily as they attempt to manage creative people. Calm will return when you learn the ten conflicting traits of creative people. Then you can turn your frustrations into constructive guidance that adds power to your startup's unfair competitive advantage.

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NOTE OF INTRODUCTION TO THIS SERIES ON CREATIVE STARTUP PEOPLE

Creativity.

That's a desired skill that stands out in great startup people: Founders, management, leaders, and employees. I also find it outstanding in the venture community: Angels, venture capitalists, bloggers, media reporters, lawyers and finance staff.

On the less positive side, creative people are also a challenge to manage (often "a pain in the neck" and worse).

I am often questioned about creative startup people, so I've decided to discuss them in a series of blogs, who they are, how to spot them and what to do about them.  The series should be about ten blogs in length, spread out over the next three weeks.

I decided begin with this question: "How creative are you?"

To help you answer that question, I'll list the traits of a creative person and let you compare yourself. I expect you to be surprised (I was).

My source for the list is a mind stretching book by Mihaly Csikszentmihalyi entitled Creativity. He is professor and former chairman of the Department of Psychology at the University of Chicago, and author of several books including the bestseller, Flow. The quoted item that I use are from Creativity.

Wednesday, 05 March 2008

REAL ENTREPRENEURS DON'T MAKE EXCUSES: They make lemonade from the lemons and go IPO

I'm staring out of my jet lagged eyes at the cityscape of Seoul, Korea. Home to hot digital games and food that will turn you mouth into red hot. I'm here helping a couple of great startup leaders prepare for their first board meeting tomorrow morning.

This is the office of Nurien, the world leader of 3D social networks. It was founded by two Cornell graduates, one a former student of mine. The closed beta of their first game will begin in the coming months.

Today they closed on a large Round A financing from world-class venture capital firms who do not have offices here.

The company rocks! Lots of creative employees (Nurenians), attractive working quarters and American business methods in a high intensity industrial center of the global economy. The country has optical fiber to every home. Wireless is everywhere. Taxi drivers use two mobile phones, talk via Blue tooth, have GPSS and digital fare meters with receipt printers. Stores are filled with buyers of world class brands, and giant advertising LCD screens light up the day and night from miles of skyscrapers. This place is hot!

Nurien has special meaning to its root name, but more importantly, in this intense labor market, to me it means "rock" in Korea. And the co-founders, Andy and Tim, know it. In fact they have deliberately taken advantage of the situation here. They have created a startup that stands out so brightly that it cannot be overlooked. The rest of the startups in the city have employees that work for cash wages (not very lucrative) and report to classical Asian managers (not much fun). So for Nurien, a company culture created deliberatively has become a local magnet, attracting the best of the best in the competitive talent market. And it is very competitive: this is the world center for massive player on-line games. The games are hot (make a ton of money) in Korea and China and the rest of the world. Just ask Shanda, Giant Interactive and Perfect World (IPOs now on Wall Street).

Do you think like Andy and Tim? Test yourself: have you complained recently that your local labor market is too tough to compete in? Or that you are missing great investors? Or that your neighborhood is a poor place to do a global startup?

Andy and Tim did not. They saw opportunity where others saw negative conditions surrounding them. And now they are launching a series of breathtaking games created by inventive people who are excited about working with Nurien. Andy and Tim made lemonade from what others saw as lemons. I hope you do that.

BOTTOM LINE: To launch your startup where you live, look for the positives and sew them together as part of your competitive advantage. Think about how to use a company culture to out-maneuver your competition. Cogitate on what management style would attract the best of the best to rush to come to work for you. Those are signs of the serial entrepreneur who knows that with a magnet that attracts top talent comes one of the most powerful elements of unfair advantage building. They know how to make lemonade out of even the most sour of lemons.

Thursday, 28 February 2008

CREATIVE STARTUP PEOPLE (Number 9 of a series) : Do you have what they have?

Today I'll move on to the next trait on the list for creative people, applying it to startups (see the introductory note at the end of this blog). The quotes are from the book cited in the endnote.

======================================================

TRAIT NUMBER 9: Creative persons are very passionate about their work, yet they can be extremely objective about it as well.

Application: Serial entrepreneurs are brutally critical of their own work, as well as excited about it.

“Without the passion, we soon lose interest in a difficult task. Yet without being objective about it, our work is not very good and lacks credibility. So the creative process tends to be what some respondents called a yin-yang alteration between these two extremes."

"Historian Natalie Davis says 'I think it is very important to find a way to be detached from what you write, so that you can't be so identified with your work that you can't accept criticism and response. I am aware of that and of when I think it is particularly important to detach oneself from the work, and that is something which age really does help.'"

A. is wildly enthusiastic about his inventions and harshly critical of his (and others') work when it does not meet his standard.

E. is her own toughest critic and expects others to do the same. Yet she praises people objectively, acknowledging the challenging circumstances she has them working in.

A. and T. bubble with enthusiasm about their new business when strangers and reporters inquire. Yet they are very tough minded about setting a very high bar that their own work must surmount.

P. is quietly objective and positive at the same time. He is a strong cheerleader and supporter of the companies he has invested in. Yet at board meetings he is very outspoken about less than the best results delivered by the startups.

BOTTOM LINE: Experienced entrepreneurs are self critical and yet very enthusiastic about their work. They expect other employees to do the same. At board meetings they are brutally realistic, about the good work and the bad. They expect to be criticized and to be critical. It comes with the turf. It is how they build their unfair competitive advantages.

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NOTE OF INTRODUCTION TO THIS SERIES ON CREATIVE STARTUP PEOPLE

Creativity.

That's a desired skill that stands out in great startup people: Founders, management, leaders, and employees. I also find it outstanding in the venture community: Angels, venture capitalists, bloggers, media reporters, lawyers and finance staff.

On the less positive side, creative people are also a challenge to manage (often "a pain in the neck" and worse).

I am often questioned about creative startup people, so I've decided to discuss them in a series of blogs, who they are, how to spot them and what to do about them.  The series should be about ten blogs in length, spread out over the next three weeks.

I decided begin with this question: "How creative are you?"

To help you answer that question, I'll list the traits of a creative person and let you compare yourself. I expect you to be surprised (I was).

My source for the list is a mind stretching book by Mihaly Csikszentmihalyi entitled Creativity. He is professor and former chairman of the Department of Psychology at the University of Chicago, and author of several books including the bestseller, Flow. The quoted item that I use are from Creativity.

Tuesday, 26 February 2008

CREATIVE STARTUP PEOPLE (Number 8 of a series) : Do you have what they have?

Today I'll move on to the next trait on the list for creative people, applying it to startups (see the introductory note at the end of this blog). The quotes are from the book cited in the endnote.

======================================================

TRAIT NUMBER 8: Creative people are both traditional and conservative and at the same time rebellious and iconoclastic.

Application: Startup people do not fit a standard mold. They are a mixture of elements that defy stereotyping, are tricky to identify and recruit, but very much worth the effort.

“Generally creative people are thought to be rebellious and independent. Yet it is impossible to be creative without having first internalized a domain of culture. And a person must believe in the importance of such a domain in order to learn its rules; hence, he or she must be to a certain extent a traditionalist. [But] being only traditional leaves the domain unchanged; constantly taking chances without regard to what has been valued in the past rarely leads to novelty that is accepted as an improvement."

"Artist Eva Zeisel says 'This idea to create something different is not my aim, and shouldn't be anybody's aim. Secondly, wanting to be different can't be the motive of your work. No creative thought or created thing grows out of a negative impulse. A negative impulse is always frustrating. And that's why "not like" -- that's why postmondernism, with the prefix of "post" -- couldn't work. No negative impulse can work, can produce any happy creation. Only a positive one.'"

"But the willingness to take risks, to break with the safety of tradition, is also necessary. The economist George Stigler is very emphatic in this regard: 'I'd say one of the most common failures of able people is a lack of nerve. They play safe games. In innovation, you have to play a less safe game, if it's going to be interesting. It's not predictable that it'll go well.'"

A. can be "a fist full" to work with or to manage because he for days he will be found strictly sticking to the science of his technological domain and then one day, without warning, is frustrated and filled with energy that fuels a rebellious rant.

E. votes conservative yet has ideas for application of her domain that are "way outside the box." She dresses between non-controversial and very fashionable. Her Midwest values are clear yet she is comfortable with a menagerie of people at work.

A. and T. are opposites who combine to create a balance between traditional and iconoclastic. They switch roles, depending on circumstances. Together they use the combination of these traits to lead a very innovative new enterprise.

P. wears classical clothing yet thinks up startup ideas that are amazing. He works well with quiet techies and yet in the next meeting is very animated, waving arms to make points and laughing with energy.

BOTTOM LINE: Don't expect it easy to find the people with this combination of traits, or to recruit them. But they are worth their weight in gold. Creativity radiates from them. They inspire the less innovative. CEOs find them very difficult to manage, but find the results of the work of such people to be breathtaking. When you can find them, these people are a powerful element in shaping your startup's culture and adding to its unfair advantage.

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NOTE OF INTRODUCTION TO THIS SERIES ON CREATIVE STARTUP PEOPLE

Creativity.

That's a desired skill that stands out in great startup people: Founders, management, leaders, and employees. I also find it outstanding in the venture community: Angels, venture capitalists, bloggers, media reporters, lawyers and finance staff.

On the less positive side, creative people are also a challenge to manage (often "a pain in the neck" and worse).

I am often questioned about creative startup people, so I've decided to discuss them in a series of blogs, who they are, how to spot them and what to do about them.  The series should be about ten blogs in length, spread out over the next three weeks.

I decided begin with this question: "How creative are you?"

To help you answer that question, I'll list the traits of a creative person and let you compare yourself. I expect you to be surprised (I was).

My source for the list is a mind stretching book by Mihaly Csikszentmihalyi entitled Creativity. He is professor and former chairman of the Department of Psychology at the University of Chicago, and author of several books including the bestseller, Flow. The quoted item that I use are from Creativity.

Thursday, 21 February 2008

CREATIVE STARTUP PEOPLE (Number 6 of a series) : Do you have what they have?

Today I'll move on to the next trait on the list for creative people, applying it to startups (see the introductory note at the end of this blog). The quotes are from the book cited in the endnote.

======================================================

TRAIT NUMBER 6:Creative people are also remarkably humble and proud at the same time.

Application: Serial entrepreneurs are both selfless and aggressive. They are skilled at finding “the golden middle” where they balance these opposing traits.

“There are good reasons why . . . these individuals are well aware that they stand, Newton’s words, ‘on the shoulders of giants.’ They respect their domain [and are] aware of the long line of previous contributions made to it, which puts their own into perspective. They also are aware of the role that luck played in their own achievements. And third, they are usually so focused on future projects and current challenges that their past accomplishments, no matter how outstanding, are no longer very interesting to them.”

“Another way of expressing this duality is to see it as a contrast between ambition and selflessness, or competition and cooperation. It is often necessary for creative individuals to be ambitious and aggressive. Yet at the same time, they are often willing to subordinate their own personal comfort and advancement to the success of whatever project they are working on. Aggressiveness is required especially in fields where competition is acute, or in domains where it is difficult to introduce novelty.”

A. speaks in awe of the remarkable predecessors in his field and yet in the next breath is aggressive and self-confident about solving the next big problem. He often scares timid people. Yet he is also self-deprecating.

E. speaks quietly yet with a tone that listeners know signals a strong personality, one that is delivering an important message without an ego that demands attention.

A. and T. look strangers in the eye, speak with excitement about their startup and yet are openly respectful of the person they just met. They discuss with respect leaders of prior startups, regardless of how those new enterprises fared.

P. says fewer words than most in meetings, yet commands instant respect when he speaks in groups. Entrepreneurs respect him for lack of arrogance yet he speaks enthusiastically about the string of world-class new enterprises his firm has helped succeed.

BOTTOM LINE: Creativity comes with finding balance in life. This includes balancing humility with pride. I and other ancient veterans respect the creative startup leaders who are proud of their new enterprises and the people who worked so hard to build the success. Yet they respect the role that luck played. And they give credit to competitors who tried but did not have such great success. That adds to the creativity of their new enterprises and contributes power to their competitive advantage. Then their competitive advantage quickly becomes unfair.

=========================================================================================
NOTE OF INTRODUCTION TO THIS SERIES ON CREATIVE STARTUP PEOPLE

Creativity.

That's a desired skill that stands out in great startup people: Founders, management, leaders, and employees. I also find it outstanding in the venture community: Angels, venture capitalists, bloggers, media reporters, lawyers and finance staff.

On the less positive side, creative people are also a challenge to manage (often "a pain in the neck" and worse).

I am often questioned about creative startup people, so I've decided to discuss them in a series of blogs, who they are, how to spot them and what to do about them.  The series should be about ten blogs in length, spread out over the next three weeks.

I decided begin with this question: "How creative are you?"

To help you answer that question, I'll list the traits of a creative person and let you compare yourself. I expect you to be surprised (I was).

My source for the list is a mind stretching book by Mihaly Csikszentmihalyi entitled Creativity. He is professor and former chairman of the Department of Psychology at the University of Chicago, and author of several books including the bestseller, Flow. The quoted item that I use are from Creativity.

Tuesday, 19 February 2008

CREATIVE STARTUP PEOPLE (Number 7 of a series) : Do you have what they have?

Today I'll move on to the next trait on the list for creative people, applying it to startups (see the introductory note at the end of this blog). The quotes are from the book cited in the endnote.

======================================================

TRAIT NUMBER 7: Creative people are androgynous and do not fit the mold of rigid gender stereotyping.

Application: Successful startup leaders are not stereotypes, but they are have a lot of extra feelings expressed in their special behavior.

“In all cultures, men are brought up to be 'masculine' and to disregard and repress those aspects of their temperament that the culture regards as 'feminine, whereas women are expected to do the opposite."

'Psychological androgyny is a [very wide] concept, referring to a person's ability to be at the same time aggressive and nurturant, sensitive and rigid, dominant and submissive, regardless of gender. It is not expressed in purely sexual terms and is often confused with homosexuality.”

"A psychologically androgynous person in effect doubles his or her repertoire of responses and can interact with the world in terms of a much richer and varied spectrum of opportunities. It is not surprising that creative individuals are more likely to have not only the strengths of their own gender but those of the other one two."

A. is a walking mass of muscles with a tender heart for people. He talks with strength and quickly senses people struggling with even minor issues of daily living.

E. reaches across oceans to care for employees in other countries who have serious health problems. She conducts meetings with an iron fist and a velvet covered club.

A. begins discussions with softness but when he confronts a big problem, the opposing side sees an aggressive behavior of hard steel. T. laughs and jokes easily and then turns deadly serious when problems pop up that demand total focus.

P. is lively in discussions with entrepreneurs and during celebrations of milestones achieved. Yet he is deadly serious and somber when confronting debilitating actions in his startups.

BOTTOM LINE: Super strong and super soft. Tough minded with a real heart. Those are some of the descriptions you may also have heard expressed about creative people. I recall one of my world-class professors who could terrify students in the classroom and be a gentle as a rabbit in his office with the same people. This special mix of the best of the best from both genders may confuse some. But experienced startup people know it is one of the traits of the finest minds you want in your new enterprise. They are part of the structure of a truly unfair advantage.

=========================================================================================
NOTE OF INTRODUCTION TO THIS SERIES ON CREATIVE STARTUP PEOPLE

Creativity.

That's a desired skill that stands out in great startup people: Founders, management, leaders, and employees. I also find it outstanding in the venture community: Angels, venture capitalists, bloggers, media reporters, lawyers and finance staff.

On the less positive side, creative people are also a challenge to manage (often "a pain in the neck" and worse).

I am often questioned about creative startup people, so I've decided to discuss them in a series of blogs, who they are, how to spot them and what to do about them.  The series should be about ten blogs in length, spread out over the next three weeks.

I decided begin with this question: "How creative are you?"

To help you answer that question, I'll list the traits of a creative person and let you compare yourself. I expect you to be surprised (I was).

My source for the list is a mind stretching book by Mihaly Csikszentmihalyi entitled Creativity. He is professor and former chairman of the Department of Psychology at the University of Chicago, and author of several books including the bestseller, Flow. The quoted item that I use are from Creativity.

Monday, 18 February 2008

CREATIVE STARTUP PEOPLE (Number 5 of a series) : Do you have what they have?

Today I'll move on to the next trait on the list for creative people, applying it to startups (see the introductory note at the end of this blog). The quotes are from the book cited in the endnote.
========================================================================================

TRAIT NUMBER 5: “Creative people seem to harbor opposite tendencies on the continuum between extroversion and introversion."

APPLICATION:  Balanced people make great startup people . Extremes in behavior are costly to new enterprises.

"Usually each of us tends to be one or the other [extrovert or introvert]. Creative individuals, on the other hand, seem to express both traits at the same time."

"The stereotype of 'solitary genius' is strong and gets ample support from our [research] interviews. As we know from studies of young talented people, teenagers who cannot stand being alone tend not to develop their skills because practicing music or studying math requires a solitude they dread. Only those teens who can tolerate being alone are able to master the symbolic content of a domain."

"Yet over and over again, the importance of seeing people, hearing people, exchanging ideas, and getting to know another person's work and mind are stressed by creative individuals."

"Physicist Freeman Dyson: 'Up to a point you welcome being interrupted because it is only by interacting with other people that you get anything interesting done. It is essentially a communal enterprise. . . .  But when I am writing I have the door shut and even then too much sound comes through, so very often when I am writing I go and hide in the library. It is a solitary game.' "

A. works in the wee hours in the office when few others are there to interrupt. Later the next day or so he arrives later in the morning overflowing with excitement and calls for the engineers to gather to witness his latest creation in the open working area of his startup.

E. can be found during some days at home or in the office on Saturdays inventing and thinking strategically. Weekly she has an all hands company meeting to discuss how everyone's work is progressing and to celebrate achievements by one and all.

A. and T. come and go, in isolation and in communal activities. They are a mix of both behaviors, personalities who inspire a very creative staff without suffocating them. The company culture breeds people who love to be creative.

P. is constantly on the go, reading bplans alone and then meeting with groups of entrepreneurs and his fellow venture capitalists. He is here and then gone, but always in touch, responding on his Blackberry in taxis in New Dehli and in his car in Silicon Valley.

BOTTOM LINE: There is a mix of solo and communal in the creative person in startups. They are eager for times of isolation when focus on one thing is so important. Then they seek groups of others to communicate with. That is why working conditions are so key to great new enterprises. Creative people need places to work without noise or interruption. And they need a working culture that welcomes them as one of the team. There are lots of lessons here for CEOs of startups. When you get this clear in your mind, you'll add a lot to building your unfair advantage.

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NOTE OF INTRODUCTION TO THIS SERIES ON CREATIVE STARTUP PEOPLE

Creativity.

That's a desired skill that stands out in great startup people: Founders, management, leaders, and employees. I also find it outstanding in the venture community: Angels, venture capitalists, bloggers, media reporters, lawyers and finance staff.

On the less positive side, creative people are also a challenge to manage (often "a pain in the neck" and worse).

I am often questioned about creative startup people, so I've decided to discuss them in a series of blogs, who they are, how to spot them and what to do about them.  The series should be about ten blogs in length, spread out over the next three weeks.

I decided begin with this question: "How creative are you?"

To help you answer that question, I'll list the traits of a creative person and let you compare yourself. I expect you to be surprised (I was).

My source for the list is a mind stretching book by Mihaly Csikszentmihalyi entitled Creativity. He is professor and former chairman of the Department of Psychology at the University of Chicago, and author of several books including the bestseller, Flow. The quoted item that I use are from Creativity.

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