BrownHEN / BrownHEN.org

Interview with Paul Choquette, Jr., Chairman & CEO of Gilbane, Inc.

BrownHEN interviewed Paul Choquette, Jr., Brown ’60, Chairman & CEO of Gilbane, Inc., Providence, RI

1. How can the General Manager of a large company like Gilbane Building encourage staff members to act entrepreneurially?

We have a decentralized structure with business units spread across the country. Our offices are relatively autonomous and of a size to produce new approaches to our customers. Best practices are then shared through peer groups throughout the company. We are a flat organization.

2. Gilbane Building is a star in the Rhode Island economy. Why has the company been so successful?

We are now a truly national company but have never forgotten our fundamental commitment to customer satisfaction. We are also committed to growth and continuously try to re-invent ourselves, essential for a company that goes back to 1873.

3. Several managers have left Gilbane to start their own construction firms. From your point of view, what responsibility does an employee have to her or his employer in terms of length of service?

We work hard to keep our managers and in the last ten years have not lost any key players. It is management’s responsibility to provide the career paths and other progressive employee approaches, for our industry has significant turnover.

4. Please discuss the advantages and disadvantages of working for a family-owned company, from the perspective of a non-family member.

In our view, advantages far outweigh the disadvantages. Our people know we are committed to the long-term success of the company and our Core Values will not change. We do not offer stock options but have compensation programs that offer attractive alternatives.

5. You are noted for the contributions you have made to the Rhode Island community. How do you answer people who question the time and effort you make in service activities?

We have always given back to the communities where we work; it is good business and good for our employees. We have big challenges in this country and we want to make our contribution toward these challenges.

6. Brown athletic teams have done very well competing against schools with higher endowments. Do you see things that can be done to continue and augment that success?

There is no question, wealthier schools have better facilities and we need to improve ours. But there is a spirit at Brown that excellent coaches have and will capture. Coaching that includes recruiting is the key.

7. What are the top five qualities you would ascribe to a business leader?

• Decisiveness
• A listener
• Good at judging talent
• Work ethic
• Balancing work/life

8. Would you speak about fear as a motivation or hindrance toward accomplishment? How has that played a factor in your path, if any?

I don’t see fear as a motivator. I am a positive person and always seek a way to the goal line working with others.

9. As you know, the entrepreneur’s path is filled with trials and errors, and also failures. What’s a valuable insight for entrepreneurs to keep in mind when they’re experiencing setbacks?

You need to learn from them and don’t become decision shy as a result. All the great business leaders have made mistakes / encountered failures but rarely repeat them.

10. What is the latest insight (about life, work, play) that you picked up and would like to share with BrownHEN?

Balance in all three is key. We try to create a work environment where fun is part of the equation and family successes are shared as business successes.

11. Most male Rhode Islanders seem to have spent at lest a week at Camp Yawgoo. Would you like to share a memory of your experiences there?

It is one of the most outstanding Boy Scout Camps in the country, fitted with all of the outdoor experiences and adventures you would expect. I spent all summer there for six years, ending up on the staff.

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© BrownHEN.org – 2007

Interview with Mark Fitzgerald, Co-Founder of Cool Foods, Inc.

BrownHEN interviewed Mark Fitzgerald, Brown '02, Co-Founder of Cool Foods, Inc., Scarborough, New York

1. Mark, please describe how you founded Cool Beans.

The founding of Cool Beans was really a happy accident. Our story is completely true! Our family was snowed in with limited rations, so I threw some cannellini beans and olive oil in the food processor. In so doing, I had unwittingly created the prototype for Cool Beans. Everyone in the family loved the dip, and we started serving it whenever we had company. It was my girlfriend at the time (now fiancée) who said we should bottle and sell it. My brother and I took her quite literally, and the rest is history.

2. What regulatory issues needed to be sorted out because you are in the food business?

Of course, you must be mindful of the FDA. It’s important to understand, however, that the FDA is not a policing body. It is incumbent upon the food producer to do his/her research and know what the labeling and processing requirements are for his product. The FDA usually only scrutinizes a product if a competitor brings it to the FDA’s attention. You will only arouse the attention of a competitor once you achieve a significant sales volume, say around $1 million annually.

3. Please tell us a bit more about Cool Beans.

Cool Beans is an “acidified food”, meaning that it is a low acid food (beans) to which an acid (lemon juice) has been added in order to achieve shelf stability. Acidified foods must be produced at a licenced acidified foods facility and must be registered with the FDA. Acidified foods must also be sanctioned by a “process authority”, such as Cornell University, through a “scheduled process”. Cool Beans is contracted manufactured, or “copacked”, which means that we contract a manufacturing facility to produce Cool Beans according to our specifications. The copacker must also conform to all the relevant regulatory bodies. Our product is also kosher, a distinction which obviously has its own requirements. We work with the rabbi who routinely services our copacker. Our product is not organic, but if it were, there would be another set of requirements for us to follow.

3. Please discuss your marketing strategy. Do you find it more fruitful (excuse the expression) to market to ultimate consumers or to retailers?

We must market to both retailers and the ultimate consumer, but with different strategies. The most important factor for the retailer is pricing. We try to offer the retailer an attractive price that will allow him to make his margin and keep his consumer happy. We also assure the retailer that we will effectively sell our product for the retailer through product demonstrations, promotions, PR, advertising, etc.
When marketing to the ultimate consumer, we try to position ourselves as a small, charming alternative to the major players. We can’t compete on price because of our size, so one way we compete is by offering a superior brand experience. Consumers enjoy hearing our story and knowing that Cool Beans is a product made by two young brothers. We disseminate our story through such inexpensive or free avenues as newspaper articles, our Web site, shelf talkers, product demos, and various online outlets such as MySpace and Facebook. Word-of-mouth is probably our most powerful marketing tool.

We also feel that we offer a high-quality product that offers consumers what they are looking for in food these days: the convergence of health, convenience, and taste. Cool Beans is ready to use in a variety of ways right out of the jar. It is made with natural ingredients and contains no saturated fat, trans fat, or cholesterol. It as also vegan, kosher, allergen-free, and gluten-free. Most important, it tastes great! Cool beans is delicious and creamy, which makes it a wonderful alternative to less healthy products such as mayonnaise, butter, and sour cream.

4. Do use wholesalers at all? If you don't at present, do you think you ever will?

We do not work with wholesale at present simply because we can’t afford to. We need to reduce our costs so we can sell through a distributor while maintaining a stable, reasonable price in the market. We will absolutely sell through distributors in the future. Packaged food is a volume business, and we can’t achieve the necessary volume by selling door-to-door. We need the infrastructure and leverage of large distributors.

5. How do you decide the various flavors?

We arrived at the three flavors largely through our own intuition and informal testing with family and friends. We were trying to capture a range of flavors, from sweet to spicy. So far, I think we have chosen wisely as the three flavors have sold fairly evenly. There’s really something for everyone.

6. How did you find a packer? How closely did you have to work with the packer?

We found a packer by reading the label of a barbecue sauce! We then submitted this packer to a GMP audit through an independent food laboratory. This lab determined that the facility had good manufacturing practices and was compatible with our product. We did look at other packers before settling on the one we use. Our food lab recommended some packers, and we also found a few through the Internet. The Northeast Center for Food Entrepreneurship at Cornell is a very useful resource. We work extremely closely with our packer. In fact we are always present at the production of our product, and we frequently speak with our packer about improving our process, finding better ingredients, procuring better ingredients. One of the advantages to working with a copacker when you are small is leveraging the copacker’s buying power.

7. Do you get much feedback from users? Is it helpful?

People certainly don’t hold back! Yes, we get a tremendous amount of feedback from consumers at the various demos and festivals that we do. Consumer feedback is invaluable to us since we can’t afford the market research and sensory testing that the major players can. We continually strive to make improvements to our product based on prevailing trends in consumer feedback. My advice is that you should throw out the anomalies, but take the trends very seriously. If people keep saying that your product is too this or too that, you should listen and make adjustments.

8. What are the top five qualities you would ascribe to an entrepreneur?

• Perseverance
• Naiveté
• Adaptability
• Vision
• Energy

9. Would you speak about fear as a motivation or hindrance toward accomplishment? How has that played a factor in your path, if any?

Fear is a huge motivation! I am constantly afraid that we will not effectively communicate our idea to a broad audience. I believe that Cool Beans is an excellent product, and I would love to see it in everyone’s pantry. I am afraid that the big companies will beat us, or that our inexperience or lack of funds will catch up to us. I am also afraid to fail and be in the difficult position of having to start again. I don’t want to be passed by peers who took safer routes. I am also afraid of working for someone else in a job I hate. All of this motivates me to work harder.

10. As you know, the entrepreneur’s path is filled with trials and errors, and also failures. What’s a valuable insight for entrepreneurs to keep in mind when they’re experiencing setbacks?

Every misstep is actually a step towards better execution and a better product. How else are you going to learn? How else are you going to improve? You simply won’t get everything perfect right out of the gate, so you had better be prepared to make adjustments.

11. What is the latest insight (about life, work, play) that you picked up and would like to share with BrownHEN?

If you own your own business, you will work harder than ever before, but it won’t feel like work.
The downside about running your own business is that your life can become very unbalanced. It’s important to make time for other interests. You will actually work better and have fresher ideas if you step away from your work from time to time.

12. Who are the three individuals who have influenced your development significantly?

Oh, this is a tough one. There are famous entrepreneurs, athletes, and artists that I admire and seek to emulate, but it’s the people closest to me who have influenced me the most. Can I pick five instead of three?

My parents have created an environment in which we have freedom but also responsibility (kind of like Brown!). My brothers and I were always allowed to choose our own path. We could do anything. We just had to work hard and conduct ourselves in an ethical fashion. We had to figure out how to do whatever it was that we wanted to do. After college, I wanted to try fasion modeling. My parents gave me their blessing, but I had to figure our how to get it done. It was a valuable lesson in becoming an entrepreneur.

My fiancée, Morgan, has a very entrepreneurial spirit and is constantly coming up with great ideas. She always encourages me to do more and believes that anything is possible. For Morgan, where there’s a will, there’s a way. She’s also the hardest worker I know, so when I’m feeling lazy, I think of how hard she works.

My brother and business partner, Matt, truly makes our business go. He’s the logistics man. Our business would collapse without him. That’s the truth. He’s taught me to be a more disciplined and efficient worker. He holds us to a very high standard and sets aggressive goals for our business.

My older brother, Sean, taught me the single most important lesson for the entrepreneur: never give up. He was a salesman, and he always got off the mat and kept hammering away. I think of him on every sales call.

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© BrownHEN.org – 2007

Interview with Donna Williamson, Managing Director of Ceres Venture Fund, L.P.

 

BrownHEN interviewed Donna Williamson, Brown '74, Managing Director of Ceres Venture Fund, L.P., Evanston, IL.

1. Donna, how did an Applied Math concentrator at Brown become Managing Director of Ceres Venture Fund?

While still an undergraduate, I initially was interested in operations research; through my summer and part-time work experience I discovered that many technical people were getting their MBAs. I decided to apply to MIT’s graduate program in management and went there directly from Brown.

I subsequently worked in the health care industry, identifying and launching businesses for new products and new markets at both Baxter and Caremark. As these companies moved away from internally developing technology and businesses due to pressures on the bottom line, venture capital seemed like a way to continue to work on cutting edge business opportunities.

2. You held a senior position at Baxter and one of its spin-offs. Ceres invests in information technology and business services, as well as health care. Did you find learning about new industries difficult?

I concentrate on the health care industry. Even within the industry technology and markets are always changing. It's one of the things I like about venture capital. My partners focus on information technology and business services. We each provide a broader business perspective to one another’s areas.

3. Please discuss being an entrepreneur within a large company. How does leading a spin-off relate to being an entrepreneur?

It can be difficult to start a business within a large company environment. Most systems and decision processes are geared to established rather than new businesses. With any new opportunity, a tolerance for risk and ambiguity is required as well as the willingness to champion an initiative and be creative in working with others to make it happen. In a corporate spin-off, one must deal with the establishment of a complete infrastructure and cash requirements rather than relying on existing corporate infrastructure and cash flow.

4. Please give advice to entrepreneurs about how to write a convincing business plan.

A convincing business plan will source as much data as possible about the risks and opportunities for a business. Often entrepreneurs look primarily at the upside scenarios and deal in general terms rather than specific ones. This can be particularly true of technology-driven entrepreneurs. Bottom-up, detailed understanding of the market and the competitors’ strengths and weaknesses help build credibility. Often entrepreneurs claim there is little or no competition for a product, which is highly unlikely. Aggressive forecasts showing high market share or "only 2%" of an ill-defined billion-dollar market typically are not credible. Finally, an understanding of the human and financial resources required to meet key milestones and ability to access them is important.

5. You have managed to have "a life" as well as a very successful career. What advice do you have in this regard to aspiring entrepreneurs?

It's hard to balance as an entrepreneur, particularly when starting out. You really have to love what you do in any field to be successful. However, having children forced me to appreciate a bigger picture and set priorities on a broader basis. I found I was more successful by delegating more and limiting my time to those things I really cared about.

6. What advice do you have, especially for women entrepreneurs, about being a woman in a field dominated by men?

Actually women are starting up companies at twice the rate of men. It has been shown that women are more successful as entrepreneurs than in any other field including medicine, academia, law, and corporate life. I believe it is because they can set the rules more easily in an entrepreneurial environment. Getting the appropriate education and experience gives one the confidence to compete on any basis.

7. Ceres has defied the stereotype that one has to be on the west coast (or at least one of the coasts) to succeed in information technology. Did you do something special or is the stereotype false?

Historically, it has been more difficult to fund technology in the early stages in the Midwest. We are finding, however, that universities are more willing to collaborate and experienced entrepreneurs are more available such that successful ventures are getting established.

8. What are the top five qualities you would ascribe to a business leader / an entrepreneur?

• Vision
• Tenacity
• Adaptability
• Integrity
• High energy

9. Would you speak about fear as a motivation or hindrance toward accomplishment? How has that played a factor in your path, if any?

In order to take risks one has to look at a worst case scenario as well as a best case. Both will motivate you to accomplish your objectives.

10. As you know, the entrepreneur's path is filled with trials and errors, and also failures. What's a valuable insight for entrepreneurs to keep in mind when they're experiencing setbacks?

I have found that failure can lead to the best insights and rather than trying to sweep them under the rug, examining them for lessons learned is invaluable. One often does not learn nearly as much from successes.

11. What is the latest insight (about life, work, play) that you picked up and would like to share with BrownHEN?

Persistence is truly important. One does not come by success overnight but through persistent actions each day. Never give up!

12. Who are the three individuals who have influenced your development significantly?

My father who instilled in me a love for math and science, Dean Hazeltine who gave me confidence to pursue a non-traditional path, and finally an early mentor who encouraged me to set my sights as high as possible.

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© BrownHEN.org – 2007

Interview with Randy Komisar, Partner at Kleiner Perkins Caufield & Byers

BrownHEN interviewed Randy Komisar, Brown '76, Partner at Kleiner Perkins Caufield & Byers, Portola Valley, CA.

1. Randy, what is the biggest difference between being a partner in Kleiner Perkins Caufield & Byers and working at a startup? What do you miss most about having operational responsibilities?

The great thing about being a partner at Kleiner Perkins is that I am surrounded by a tremendous amount of talent—my fellow partners, the founders and CEOs of our many ventures, the impressive management teams with whom I am privileged to work, as well as the many experts who work with our firm and make us smarter.

What I miss is the single-minded dedication to one team’s mission; the daily camaraderie amongst entrepreneurial team members who work together in the trenches, and the success of the team’s vision and passion, which serve to tie the individuals together.

2. How did an Economics concentrator at Brown and a law graduate from Harvard gain the technological background you obviously have? What advice do you have for aspiring entrepreneurs about learning pertinent technology?

The Brown Curriculum allowed me to branch out and acquire a passable competency as a technologist. Brown’s freewheeling academic environment enabled me to take classes in computer science, biology, engineering, mathematics, and other technical and science-oriented courses that I would not have taken if I were merely focused on acquiring the highest GPA. I was able to broaden my knowledge base and education.

My advice for entrepreneurs would be to obtain a generalist background first. Many universities focus on a very narrow, restrictive curriculum. Brown is an exception; Brown focuses on and excels in undergraduate liberal arts education. At Brown, I discovered how to engage my curiosity and how to learn. The methods and processes I learned at Brown have served me well, including in my current role. Every day I go out and learn something completely new and I tap into expertise from various fields to augment my own understanding.

3. What advice do you have for entrepreneurs writing business plans to secure funding?

In a startup environment based upon taking an innovative leap of faith, all experience will be secondary and tertiary, deduced from markets and the experience of other companies. By definition, you do not have sufficient first-hand experience with the leap of faith to develop a foolproof operating plan. But you do need to put something together in order to aim the venture and to gather the money and talent you will need for the journey.

The notion of a business plan for a startup is necessary but not sufficient. The business plan needs to demonstrate to the investors and team that the founders understand the nature of the challenge they are undertaking. But the team will have to refine and of course correct along the way as assumptions based upon secondary information are tested against primary data from the marketplace.

4. When you are evaluating a particular investment what role does the social contribution, for example, to the environment or to economic justice, play?

It does play a large role, but interestingly, it is not necessarily altruistic, because our role is to create commercial value. We do ask the question, “How will this company provide significant value for others?” If you look at our firm and its investments, whether it’s Genentech, Sun, Netscape, Google or Amazon; all these companies created significant social value that lead to their creation of impressive financial value.

This significant value can be utilitarian: with Google one can find anything at anytime; with Amazon one can shop and buy anything at one’s convenience; with Netscape, one could browse something called the internet and explore an entirely new digital world. These companies did not just create social value; they revolutionized our society.

A few years ago, appreciating the threat of pandemics in a global society, we raised a fund and brought in experts to focus on investing in innovations that promise to detect, treat and prevent pandemics. Aligning our economic interests with a huge public threat is good business.

We currently have a strong investment thesis related to the environment; half of our investments focus on companies that are in the green tech—clean teach area. Al Gore just joined us as a partner to help accelerate our global efforts in this regard. Addressing a big problem, like global warming, by definition provides the prospects of creating great value for all the various constituencies.

5. Can New England, Providence in particular, hope to become an entrepreneurial center similar to Silicon Valley? What is needed?

To create an entrepreneurial center like Silicon Valley, Rhode Island needs to develop a cluster of people with relevant domain know how and a culture that reinforces entrepreneurship. Boston already has a robust entrepreneurial center.

I’ve spent time in Japan, India, Taiwan, Chile, and other entrepreneurial hot spots around the world. The question is always asked, “Why is one location more successful than another?”

What I have noted to be particularly unique about Silicon Valley is the following combination of factors: a highly educated group of entrepreneurs and scientists, a great university, and a robust business infrastructure that supports startup ventures, including attractive working and living environments, a lot of available risk capital, and access to quality legal, consulting and financial services.

But Silicon Valley is more than just a combination of its parts. Its entrepreneurial culture has taken more than 80 years to develop. Silicon Valley attracts certain personalities, which are reinforced over time. What people don’t quite grasp is that the culture is very dynamic and it is reflected at every level. People who decided to come and stay invest themselves in the local entrepreneurial culture.

The secret ingredient is how a place like Silicon Valley deals with, “failure.”
Silicon Valley doesn’t punish or brand those who fail. If you have acquired experience and you are passionate about your mission, you are given other opportunities. Silicon Valley recycles and reinvests in the entrepreneurial spirit, something that most other business cultures do not do. Successful people also reinvest in innovation; they want to be a part of the next big thing; they want to help mentor, guide and support aspiring entrepreneurs. This reinvestment is probably the most significant reason Silicon Valley is so prolific in terms of innovations.

6. How can subjects like leadership and entrepreneurship, which seem to be based on personal attributes, be taught?

I have been teaching entrepreneurship at Stanford for seven years now. Great leaders and entrepreneurs are determined by an individual’s experience and, more important, character. What a teacher or mentor can do is reinforce aspects that are aligned with leadership qualities and provide insights and tools to leaders-in training.

In business, leaders are too often judged by the immediate results posted by their companies. Over a short term, a lot of people appear to be good leaders. Great leaders should be evaluated over a longer period of time on their sustainable successes.

7. What are the top qualities you would ascribe to a leader, an entrepreneur?

• Integrity
• Intellectual honesty
• Empathy
• Good self-knowledge — who you are and what you care about
• Passion and complete absorption in one’s mission
• Perseverance

8. Would you speak about fear as a motivation or hindrance toward accomplishment? How has that played a factor in your path, if any?

I believe fear is a negative emotion and do not find it useful. A lot of people think that if you are paranoid, it keeps you vigilant. But I do not find it beneficial to indulge in fear or to act out of fear.

9. As you know, the entrepreneur’s path is filled with trials and errors, and also failures. What’s a valuable insight for entrepreneurs to keep in mind when they’re experiencing setbacks?

Failure is not personal if you acted with integrity and have given it your best shot. In Silicon Valley, the only real failures are the people who have fallen short because they were lazy, stupid or corrupt. The inability to achieve results does not make you a failure; it can ultimately lead to positive experience that can result in success.

Most leaders with great successes have had moments of personal doubt, and have endured failures along the way.

10. Do you have a mentor who has helped you in career path / personal development?

I have many mentors. The most significant one is Bill Campbell. I worked with Bill at Claris and Go Corporation in the ‘80s and early ‘90s. We met at Apple more than 20 years ago. He is a terrific mentor. I also learn from my colleagues and associates as well as the many young entrepreneurs I work with.

Most important is that a mentor invests in your success, reinforces your abilities to succeed, extends himself/herself to you, and helps provide what you need for your own personal success, however you define that. While a teacher gives you tools to achieve an existing definition of success, a mentor helps make you a better you.

11. What motivated you to write the very well respected, “The Monk and the Riddle?”

The book started as a rant. It expressed the disgust that I felt during the middle of the dot.com boom. I feared that entrepreneurship was losing its meaning and purpose. It was being co-opted by the carpet baggers and the get-rich-quick crowd who were no longer pursuing entrepreneurship with passion and purpose, heart and soul. The book came out just in time, a month before the crash. To some extent it is gratifying that it is still so well received and used at numerous universities around the world, but its continual success reflects the fact that the base excesses of the boom are never far away.

12. Since the book was written, sometimes it seems like people are being less kind to one another than they had been. What hope do you have for the world?

That is a big question. The human condition is one where we are challenged and tempted by ego, greed, self-interest; many celebrated role models for success are aggressive, brutal and uncaring. It is hard for most people to rise above that and discover that it is the love and support for others that ultimately determine one’s level of satisfaction and fulfillment. Until we rise to that level of kindness, hope will be in short supply. But I am at heart an optimist and believe that people truly want to be kind, so I will hope for that.

13. What is the latest insight (about life, work, play) that you picked up and would like to share with BrownHEN?

To live a satisfying and purposeful life, you have to make a contribution. I find it very useful to live a life of integrity in a literal sense—to be integral—to incorporate my principles and values in my livelihood, to express my values in my daily life genuinely and authentically, and to engage empathetically with the host of wonderful people with whom I am privileged to cross paths every day.

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© BrownHEN.org – 2007