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Interview with Barrett Hazeltine, PhD.

BrownHEN interviewed Barrett Hazeltine, PhD – June 25, 2007

1. Dean Hazeltine, for thousands of Brown grads, you are known as the father of entrepreneurship who has advised and helped countless of former students start their own companies and guided them to success. What many people don't know is that you yourself have had your own entrepreneurial success. I kept hearing from different alumni vague stories about your patent way back when. Would you speak to this and share some of your experience with us?

I am really afraid to disappoint you because the actuality is much less exciting than the rumor. About 25 years ago, a Brown graduate named Dick Simon came up and said he owned a company, U.S. Billiards, which made coin-operated pool tables. In these kind of tables one gets the cue ball back if it goes down a pocket. He needed some way of distinguishing the all-white cue ball from the other balls. His competitors either made the cue ball slightly smaller or heavier but both approaches had faults.

Another Brown professor and I designed and built a device using small lights and light-sensitive detectors that recognized the cue ball. Not to bore you with the details, the hardest ball to detect was the one with a yellow and white strip but it turned out that the three detectors would work. The device worked and was deployed but the market for coin-operated cue ball dried up.

I have a vague memory of getting my name on a patent when I was working at Raytheon in 1965, but the group of people working on the project was large, and I do not remember the details.

Matt Paknis, whom you know, another Brown alumnus Ray Steele and I formed a company to do management consulting. We mostly worked on work force motivation and team building—Matt’s specialty. The company did fine, but I did not want to give up my day job (Brown) so I did not spend as much time with it as it needed. After a few years, I went off to Africa and the company got reorganized with Matt as the sole proprietor. I still collaborate with Matt on various projects.

Another entrepreneurial venture is a new charter school in Providence—called the Paul Cuffee School. I was on the original board and still am. We had our first 8th graduation last Saturday (6.23.07).

2. Time and again, I have heard from fellow Brown alumni of your creative input in helping them solve their entrepreneurial and professional challenges. When did this entrepreneurial instinct surface in your life?
You ask hard questions! One quality of an entrepreneur, I think, is curiosity about many different things and I think that came out early. A related characteristic is wanting to try new ways of doing things—which is not an endearing trait for parents and colleagues trying to get a short-term goal accomplished. But I did not think of staring a business until much later in life—did not realize how exciting, challenging, and exciting it would be. Like many aspects of a persona, the entrepreneurial spirit is present in many people, but needs to be allowed to flourish.

Did you receive support from friends and family to nurture it?
Not much. I think I got the most support later in life by watching students succeed with their own ventures. My impression is that many successful entrepreneurs start out as a lonely gladiator with perhaps a single partner; only after achieving some success will they have credibility to attract a team, or a mentor. Being strongly involved with a group early dilutes the passions and slows the process.

3. How do you advise young entrepreneurs to cultivate this entrepreneurial DNA?
In early stages inspiration is probably most important and one place to get that is reading about the efforts and successes of other entrepreneurs. I like FAST COMPANY magazine because the articles are suitable and have a nice combination of insight and brevity. I am sure there are other magazines or even books that are equally exciting. After one has read a few articles, my advice is to go out and do it—be an entrepreneur, walk the talk. The rest of what you need to know, you learn as you go.

4. What are the three common factors that you have noted among your former students, which contributed to their successes?
Persistence, desire to learn about many things, appropriate blend of wanting to be independent and a willingness to listen to others. This is turning into about five common factors. Persistence has two aspects: 1) sufficient confidence in one’s self and one’s idea to continue despite discouragements and 2) willingness to work very hard.

The entrepreneur has to make a whole lot of things work together; unless she or he really enjoys learning about each of these things a project will not come to fruition. On the other hand, an entrepreneur must be relentless in pursuing the core of her/his vision—else why work so hard? On the other hand, most of the entrepreneurs I know about seem to have benefited significantly from advice originating from outside the enterprise.

5. What advise do you have for this next generation of entrepreneur hopefuls? How has the landscape changed since 20 or 30 years ago?
Seems to me entrepreneurship is much more generally accepted now than it was even a decade ago. My impression is that it used to be the case if a college graduate went home and told her/his parents that s/he wanted to be an entrepreneur, the reaction would be horror and disbelief. I think that has changed. People recognize much more than in the past the need for this country to have new ventures and the overall social value of entrepreneurship. Loneliness used to be a big pain for an entrepreneur, “Am I the only one facing these problems?” More support and resources are now available: nonprofit groups, state agencies, as mentioned earlier, magazines, etc. There seems to be more venture capital around and more angels—certainly there are more investment firms than in the past and most states have agencies to encourage entrepreneurs.

6. You’ve given so much of yourself to your students. What do you hope that they in turn can pass on to their students and protégés?
I hope young entrepreneurs—successful or not—will encourage the next set of entrepreneurs. Not all can give advice or funds, but all can spend a few minutes listening and offering some kind and helpful words. An appropriate mixture of praise and realism is needed. The confidence of young entrepreneurs is often fragile, even if hidden by bravado; an advisor should not damage that confidence. I hope senior people will also pass on to others a need to consider the implications of what is being proposed—will it make people kinder and more generous? Will it protect the environment? And so on.

Copyright 2007 - BrownHEN.org

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Interview with Tom Gardner, CEO of The Motley Fool

BrownHEN interviewed Tom Gardner, Brown '90 and CEO of The Motley Fool, New York.

1. Tom, in a recent FORTUNE article, you discussed societal trends. How does an entrepreneur learn to recognize such trends?

I recommend three ways. First, ask questions, be curious. Get in touch with people, seek out leaders. Do what you are doing: contacting a CEO and asking for 15 minutes of his/her time. One needs to be disciplined and methodical about asking questions and insights on trends.

Second, listen and take good notes. File your notes online or in folders in a cabinet. Take note of what you’ve learned. The very act of note taking, of writing down new information and insights helps one learn.

Third, read. Read what’s on Amazon and Google. Read books and articles. Read about demographics. Read at least an article, a book or two by Peter Drucker, whose writing integrated many issues that are relevant to entrepreneurs: a company’s knowledge of its products and of the market, its mission, its values, and its entrepreneurial aspect.

What do you think of Drucker’s article, ‘Managing Oneself?’

Very insightful. I would also add that 90 per cent of what you do is not very impactful. It’s the 10 to 20 per cent that really makes a difference. So focus on what you do well and dedicate yourself to excelling in that area instead of starting with something that you have no competence in.

2) In your business you probably often get asked to do things you do not want to do.  How does one gracefully say "No" to such requests?

Personally, I am inclined to say, “Yes” often. Before I became CEO in February 2007, I was a founder and a producer. My responsibilities were different then. As CEO, I push my  direct reports to prioritize, delegate and focus on higher priorities. And it is okay to make mistakes. I prefer that they do not waste time on inconsequential things and doing them well. I prefer that they assume more responsibilities and make mistakes. I find that we need to be deliberate and intentional about our high priorities.

3) Do you have advice about being in partnership with a family member?

Recognize each individual’s strengths and weaknesses. Be as transparent as possible. The foundation is communications; you need to communicate frequently and clearly. Anyone interested in family-run businesses should read about the Nordstrom or the Mondavi family. One family could work together while the other fell apart.

4) The Motley Fool has a great many services and activities. How do you manage such a diverse portfolio?

Methodically. From our launch 13 years ago, we aimed to hire smarter and more talented people. In my experience, I have encountered egoism from MBA grads, who tend to hire people who can do it right, rather than hiring people who will challenge them. I believe one makes a better CEO if one allows criticism and debate. We have such talented individuals in our company that I could leave the day-to-day operations to my team and feel assured that everything will be running smoothly.

5) You are well known for your light-hearted (non-threatening) presentation of a serious subject. How do you keep your good-humor?

Having fun is so core to me. I discovered that I learn best when I am having fun. As someone who is curious, I am constantly engaged and learning. A piece of my mission is to challenge conventional wisdom. Classic cases for investors are to buy when it’s good and sell when it’s bad. They should go against human nature and do the reverse. But most people don’t. I learned that people tend to receive instructions (contrarian or conventional wisdom) better / easier when the teaching is infused with humor.

6) What are the top five qualities you would ascribe to an entrepreneur?

One, focus on building an ownership culture. In some of the greatest companies, people care very much about their organization’s wellbeing and performance. As people care about the house or the car they own, they care about their company because they have partial ownership.

Two, be passionate about what you are pursuing.

Three, be adaptive to change.

Four, focus on long-term.

Five, be disciplined. It usually takes 10 years to develop a high level of proficiency. This applies to mathematicians, violinists, chess players, etc.  To acquire any kind of expertise, one needs to practice daily.

7) Does everybody in the organization get to wear a jester's cap?

(Laugh!) More people prefer to wear baseball caps with our fool’s logo, but we do have bell caps around the office.



Copyright 2007 - BrownHEN.org

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Interview with Tom Scott, Chairman, CEO and Founder of Plum

BrownHEN interviewed Tom Scott, Brown '89, Chairman, CEO and Founder of Plum, New York.

1. Tom, how important is it to have a detailed plan before you start an enterprise?

It is only important in thinking about it. Most likely you won’t follow it. Flexibility is a huge factor. There are so many nuances to developing a product or a service. You will find that a lot of it is trial and error, especially if you are breaking new grounds.

2. On the face of it Nantucket Nectars seems far removed from your undergraduate concentration. What recommendations do you have for an aspiring entrepreneur about choosing a concentration?

I recommend that you study what interests you. I focused on American Civilization at Brown. Tom First and I started out operating a floating boat because we loved being on a boat. Juice was one of the things we sold. One thing led to another and we ran with Nantucket Nectars.

3. The folklore about Nantucket Nectars has much about basketball and you were an athlete at Brown. Do you think sports experience is significantly beneficial for an entrepreneur?

It is somewhat beneficial. Commitment and teamwork are critical to an entrepreneur’s success. In addition to athletics, there are other ways one can learn to develop these skills.

4. How did you learn all the intricacies of the juice business—where to source fruit, where to get bottles, how to get the product fresh, how to structure an investment?

It was all trial and error. We put one foot in front of the other. We had passion, it was what we loved. We did not take no for an answer. If we had known how hard it was going to be, we might not have ventured forth.

5. What advice do you have for an entrepreneur selling the business?

I believe you run a business to run a business; you shouldn’t run a business with an exit strategy. You will know when the time is right to sell.

6. Recently, as President/CEO of Plum TV, you were named among the 27 most innovative thinkers in the worlds of media, entertainment, politics, and technology by Details magazine in their second annual “Mavericks” issue. What do you do to keep yourself growing creatively as a person, as a business leader?

Thanks! Those awards are flattering. I just pursue what I like, what interests me. If you are passionate about your work (your products / your services), you are going to spend a lot of time thinking about it, working on it, and improving it. If growth has slowed, you should take actions to mix it up. 

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

• Passion.
• Perseverance.
• Survival instinct.
• Faith in yourself, in your vision. A belief in the unknown. You may be dreaming of what didn’t exist, what seemed unlikely to exist.
• Trust. Before we got into juice, Tom First and I started a painting business with four people. Our business evolved and it ended with us two. Trust is a rare thing—trust and the ability to have an open dialogue, which is essential.

8. Who has the dog now?

Well, we had two dogs. Tom has one and I had Becky, and she passed away in 1990.



Copyright 2007 - BrownHEN.org

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Interview with Elias Roman, Co-Founder & Co-CEO of Amie Street

BrownHEN interviewed Elias Roman, Brown '06, Co-Founder & Co-CEO of Amie Street, Long Island City, New York.

1. Eliot, please explain the model used by Amie Street. Why is it different from other sites where one can download music?

Amie Street uses word of mouth as the dominant filter to provide users with music recommendations deemed relevant by their social network. We use dynamic pricing (with all songs starting at zero) to both allow price to serve a quality metric and to encourage people to experiment with music they may never have heard of. We also forbid DRM on our songs. Digital Rights Management in some ways causes consumers to only lease what they thought they had purchased.

2. Amie Street has had really remarkable growth, even before the recent investment by Amazon. Please analyze the reasons for the growth. Is it sustainable? (We know, of course, that one reason is that you and your co-founders, Josh Boltuch and Elliot Breece, are very smart.)

I certainly believe it is sustainable. We have been focused on building a product that markets itself. We continually upgrade the product to be a good and fun experience so people will share it their friends.

3. So what kind of music do you prefer?

Thanks to Amie Street, I'm loving a lot of music I didn't think I liked before: country, folk and indie rock in particular. I've always been a fan of blues, rock and hip-hop.

4. Does Eliot (and/or the rest of you) contribute songs to the Amie Street list?

I do  have music on the site for sale, but under a nickname, since I'm too embarrassed to have it under my name. (I don't think my singing is quite there, yet).

5. You must be using some sophisticated computer algorithms. How did you get these written?

We had months and months of free time during college to think them through.

6. Are the offices for Amie Street in one of your parents' home—the stereotype basement or garage?

Our offices started in Brown University housing. Next, we moved to two other houses in Providence, then to a house in Hicksville, New York, and finally to offices in Long Island City. At this point, the founders have been living together 24/7 for 16 months straight.

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

It certainly has been a good motivating factor, in that I left an offer for what I thought was my dream job to stay with Amie Street. That being said, since I love getting up every morning and working on Amie Street, the only real fear is letting our supporters down.

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

I have found that taking the extra few seconds to make decisions, and then going with what seems to be the dominant move at the time, saves me a lot stress later on. I can look back and know I did my best. That's all you can really ask of someone.

9. The music business is rumored to be very competitive—cutthroat and lacking trust. How are three nice young Brown graduates doing so well?

We have received a lot of positive feedback for doing business so honestly. We have also dealt with some true sharks. In particular, saving the "I'm walking away if you can't agree to this" threat for only when you truly mean it, and only late in the negotiations, gets you a lot of mileage, too.

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Copyright 2007 – BrownHEN.org

Interview with Tom First, Co-Founder, CEO & President of O Beverages

BrownHEN interviewed Tom First, Brown '89, Co-Founder, CEO & President of O Beverages, Cambridge, MA.

1. Tom, how important is it to have a detailed plan before your start an enterprise?

I think it is important to have a solid vision for your product. A plan can be helpful in understanding your requirements for reaching that vision, but plans always change. I’m not sure I’ve ever written a plan that actually came to life—you hope to get close. Understanding how to change your plans and having the ability to adjust to the realities of the marketplace is much more important than writing a good plan. I have seen many people who write elaborate, detailed business plans, but have no ability to execute in the light of day. I have also seen a lot of people write wonderful plans for businesses that they never start!

2. On the face of it, Nantucket Nectars seems far removed from your undergraduate concentration. What recommendations do you have for an aspiring entrepreneur about choosing a concentration?

I was an American History major, which would not typically lead you into the juice world. I enjoyed many of my professors at Brown and learned to enjoy learning—whether it was from the faculty or from my friends. In business, with Tom Scott, I learned to love what I do and do what I love. Tommy and I always said that if it stopped being fun, we’d go do something else. We found a way to make our business fun—that’s why we stuck with it and ultimately, that’s why we were successful. I think that Brown was much more about the process of learning than a means to an end. 

3. What is it like to now be leading a company in the same industry as Nantucket Nectars?

I have always enjoyed making and selling things that people can relate to and get excited about. Our products have flavor, color and style. I don’t really think of myself as a beverage person or a consumer products person—I think of myself as a marketer and I’m happy that I market and sell something fun. In many industries, people seem to get caught in the trap of marketing or selling in the same style as other people in their industry. I try very hard to have an outsider’s perspective to my industry because I want to have a fresh approach to product development, marketing and sales. Today, Tom Scott and I are in totally different industries, but we talk all the time and you would be amazed at how similar our challenges are.

4. What are some of the challenges you have faced as co-founder of O Beverages? Who is the CEO and who is the President?

I am the CEO and President. I think my biggest challenge is remembering how tough it was in the beginning at Nantucket Nectars—the first five years were brutal and most people, thankfully, don’t remember what the product was like in the early days. Free rides in the business world are very rare. Instant success may come if you have a new technology or an absolute break-through concept in some industry. Typically, however, success comes by gutting it out, having staying power and being relentless about refining your product, your marketing and your sales. Competition is fierce and mediocrity is not rewarded. With O, we have been working to refine our product and our packaging for two years, and we have made enormous strides. My experience and reputation as “the Juice Guy” has been great, but it doesn’t mean that O can survive without being a top-notch product. When you are 23 years old and you can work seven days a week for 15 hours a day, it’s a bit easier to carry the burden than it is when you have a family.

5. At one time you had a company selling business software—perhaps you still do. What is the big difference between that business and a business selling consumer products?

I’m not a software guy. I’m very visual and I’m pretty impatient. I love the instant feedback that you get in the consumer product world. I enjoy the relationships with our customers (distributors, retailers and consumers). 

6. What advice do you have for an entrepreneur selling the business?

First of all, I think it is hard to build a business with an exit strategy in mind. Tommy and I were blessed with ignorance. We built our company because we loved being on Nantucket and we wanted to find a way to keep our lifestyle. Out of that grew a business that eventually became valuable. Nantucket Nectars was about our product, our people and our passion—not about building to sell.

When the time does come to sell, you should work hard to sell under your ideal circumstances. If one offer comes, it is almost certain that others are out there and patience brings great opportunity. Once you’ve created the value, you hold the cards and offers create anxiety and emotion. The greatest weapon you have in a negotiation is time—if you have more time and more patience, you will often get what you want.

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

• Passion for what you do – product or whatever
• Paranoia – never believe that you or your product is good enough
• Honesty
• Drive
• Communication – the ability to tell your story and communicate it to people

8. 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 have to look at failure as a learning opportunity. Failure is a big part of business and making the same mistake twice is a no-no. People who fear failure are not entrepreneurs. Failure tests the limits as long as you are honest with yourself and you can use your mistakes as a tool for future navigation. Failure is a great teacher.

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

Business is about people—people create ideas and products and bring them to life. Tommy and I talk all the time—and after a few years apart and some distance from 14 years of day-to-day grind with him, I have really gained perspective on what we had. It was so rare—we became like brothers even within the tense framework of building a business. We built a great product, had a great experience and made money. However, I think my experience with Tommy and the learning that we went through together and the relationship we developed outshines all of the other rewards. It is about people—and I am lucky to have the opportunity to share the ride with him and many others at Nantucket Nectars and at O.

10. You and Tom Scott each had a dog? Do you still have yours?

Pete is still alive; he’s 14 years old. We got him a girlfriend, Izzy. She’s a puppy Portuguese water dog. Tom Scott’s dog, Becky, died a few years ago. Pete always thought Becky was the coolest thing; he worshipped her.

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Copyright 2007 – BrownHEN.org

Interview with Sheeraz Haji, President of Convio, Inc.

BrownHEN interviewed Sheeraz Haji, Brown '94, President of Convio, Inc., Austin, TX – Offices in Berkely, CA and Washington, D.C.

1.  Sheeraz, you have done many interesting things in your career. Do you believe a new college graduate should plan out the succession of jobs to be sought or do you recommend that s/he simply be open to new opportunities?

I believe new grads should stay open to opportunities as they arise. When you are fresh out of school, it can be difficult for an individual to recognize his or her shortcomings. My advice is to seek out individuals who motivate you, and from whom you can learn. Avoid pigeon-holing yourself into a certain profession simply because you think it’s where you belong. Keep an open mind and explore new opportunities as they present themselves. It may take a while to find the ideal one, but it can be worth the wait. I speak from experience—I studied civil environmental engineering at Brown and ended up in an exciting career in software.

2.  What is GetActive and how did you start this software-as-a-service company for nonprofits?

GetActive provided software to help nonprofits raise money and run advocacy and marketing campaigns. While I was working at Digital Impact—a provider of online direct marketing solutions for enterprises—I noticed that nonprofits weren't taking full advantage of the internet to interact with their constituents. I had the good fortune to connect with a number of talented technologists who were struggling with the same issues from within a nonprofit (Environmental Defense Fund). To address this gap in the market, we co-founded GetActive in 2002.

3. Please share with us the analysis process you went through in deciding to merge GetActive with Convio.

At GetActive, we took pride in looking after our clients and focusing on their long-term interests; we also wanted to be forward thinking in terms of the company’s strategy. We were committed to delivering as much value as we could to our clients, so we decided to marry what we were best at—advocacy and content management—with what Convio is best at—fundraising.

4. You began your career as an engineer for a medium-sized company. You then worked with a respected consulting firm before co-founding a startup. Would you share a bit more about your background and compare the learning experiences at these respective companies?

I started out working for an environmental engineering company because I was, and still am, passionate about the environment. I wanted to solve environmental problems. When I was at the engineering firm, I realized I also needed business skills to complement my engineering skills. I was advised that McKinsey would be a good place to learn about business, so I contacted them, participated in a rigorous interview process, and was offered a position. McKinsey provided lots of resources and useful training; their consultants know how to solve business problems. My time at McKinsey was a fabulous learning opportunity and provided me with great exposure to how large companies operate.

At McKinsey everything was very structured, whereas in a startup environment like GetActive, I was required to wear different hats: operations, strategy, marketing, to name a few. GetActive offered plenty of opportunities for development and growth. I quickly learned that startups were a perfect fit for me. I also discovered that I was more effective in a startup because of the time I had spent in established companies.

5.  Much software creation is being outsourced to Asia these days. Do you see opportunities for entrepreneurs in managing outsourcing?

Yes, I do, but it is not as easy as people once thought it was. In some ways, outsourcing to Asia has come full circle, and we are now seeing a rise in outsourcing to Eastern Europe and Africa. While it may be cheaper to outsource, there is no shortage of communication and operational challenges in trying to coordinate a development team that’s on the other side of the world.  Unquestionably, the opportunities exist, but so do the headaches that accompany them.

6.  Are you presently involved with a not-for-profit organization working for social good? If you are, describe the organization and why you are involved.

Yes, I am. The organization, Direct Change, builds grassroots financial support for community-based African projects that are directly helping children. I am involved for a number of reasons. First, I know the founder (Ken Deutsch) and think the world of him. Second, Africa needs our help; and third, Direct Change focuses on children’s health and community building, both of which I believe are critical to long-term change in Africa.

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

• Passion - it should be evident to everyone you interact with.
• Positive attitude – an optimist’s perspective, especially when everyone tells your venture is not going to work out.
• Leadership – the ability to convince people to follow you when you have no cash, no product, and no clients.
• Ability to notice trends that are not well understood.
• Strong work ethic.

8. And how does one learn to spot trends?

For me, I learn by talking to clients and spending time to understand their needs and how those are changing. Talking to industry experts can be helpful, but the analysts don’t always understand what customers really want—in the short and long term. If I spend a day with customers, I always come away with a better appreciation for their needs, what’s working and what’s not working.

9. Would you speak about fear as a motivation or hindrance toward accomplishment?

For me, definitely a motivation. There were times during GetActive's early days when I was concerned about running out of cash and not making payroll. When you hire people to work on your team, you feel responsible for them and you want to make sure you take care of them. The fear of disappointing colleagues and clients was highly motivating!

10. What advice do you have for entrepreneurs who possess some of the qualities you mentioned above, yet at times get stuck because they haven’t been able to figure out how to adjust their product line, meet their revenue goals, etc.?

My advice is to think big and dream big. Envision your success and then understand what you need to accomplish in the short term to make progress towards your goals. Work hard until your dream becomes a reality.

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

Events happen. It’s up to us to decide how we interpret them. For example, if a large enterprise decides to compete with your company, you probably had no control over that. You could interpret this as a negative event, stress out and worry about potential revenue loss. Or you could focus your team's time and energy on finding a creative way to make this development work to your company’s advantage.

12. So the outcome depends on how you choose to respond and on your decision to focus on the positive.

Exactly!

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Copyright 2007 – BrownHEN.org

Interview with Bob Stearns, Co-Founder and Managing Director of Sternhill Partners

BrownHEN interviewed Bob Stearns, Brown '71, Co-Founder and Managing Director of Sternhill Partners, Houston, TX

1. Bob, you must have read many proposals in your life, what advice do you have for entrepreneurs writing a document asking for money?

Entrepreneurs need to know that venture capitalists are interested in reviewing proposals that are expressed succinctly, without spurious details. We are not interested in lengthy documents with five-year projections that are speculative. We usually focus on three things: the quality of the individuals who are starting the venture, the nature of the products or services, and the market opportunity.

2. What were you doing at Compaq and how did you end up at Sternhill Partners?

I was CSO, CTO and Senior VP at Compaq. Part of my responsibilities as Senior VP included running a VC fund for Compaq, where I really enjoyed working with young companies. Compaq reached a point where its direction diverged from mine, so I left. I co-founded Sternhill Partners with Marc Geller in 1999. Sternhill was a VC startup; it faced all the issues related to starting a business: raising money for a limited partnership, establishing our geography and niche.

What was your biggest challenge?

Our biggest challenge was raising money from high net worth individuals and institutions. That said, we were able to raise our initial funding quickly.

3. What advice do you have for a person leaving a large corporation for a venture of her/his own?

Entrepreneurs who are striking out on their own need to be pragmatic and optimistic, and have high energy. They need to correct their mistakes rapidly and move on. They also need to surround themselves with people who possess relevant skills and seek help from their advisors.

4. Why was your venture fund at Compaq so successful?

Partially, it was the right timing. In the mid-1990s, venture capitalists generated tremendous returns in general. Second, Compaq invested in companies with products that could be incorporated and sold through its distribution system. There were a lot of opportunities for Compaq to benefit from these investments. The venture fund enriched Compaq’s shareholders. The best of the best technologists would come to Compaq. We were very successful; the fund’s return was 20 times the investments.

5. Your formal education was science-based. Did you feel you had a lot of catching up to do when you went into management?

I studied chemistry and physics at Brown. I felt the need to supplement my education with business skills so I went to graduate school at MIT and took additional courses at the Sloan School.

6. Do you think entrepreneurial opportunities still exist in the computer industry? Has the industry reached maturity so large organizations have an insurmountable advantage?

Absolutely! The industry has reached maturity some areas, but not in others. Entry levels to IN semiconductors, computer hardware manufacturing, and storage hardware are difficult. IBM dominated in the 1960s, and then came the personal computers. Opportunities still exist, but less so in computer hardware.

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

• Has a passion for whatever and for getting things done.
• Possesses honesty with oneself and with others; accepts what one can and cannot do.
• Is bright.
• Possesses people skills with at all levels; is able to attracts money and customers.
• Does not fear failure.

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

Life is what happens to you while you are planning. Allow it to take you where you want to go rather than where you think you want to go to please somebody else. Enjoy every day and don’t take yourself too seriously; don’t chase after money or title. People succeed because they enjoy what they do.

9. How long did it take to understand the Texas accent?

Very quickly. I’ve been in Texas for 15 years and I love living here.

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Copyright 2007 – BrownHEN.org

Interview with Kevin Hazel, Vice President, Strategic Purchasing, Siemens Power Generation

BrownHEN interviewed Kevin Hazel, Brown '77, Vice President, Strategic Purchasing, Siemens Power Generation, Orlando, FL (USA) and Erlangen, Germany

1. Kevin, how did a civil engineer become a leader in the electric power industry?

The path to any leadership position is often indirect, including experiences in multiple business areas.  For me, that path included engineering, technical management, project and program management, quality system design, organizational development, strategic marketing, and supply management.  At the end of the day, I have always felt that if you are trained to think well ("Thank you, Brown University!") and freely apply yourself with energy and passion, opportunity finds you.

2. You know a great deal about electric power generation. Please predict what it will be like in 10 years.

Centrally-based power generation using fossil fuels will remain the primary source of satisfying a continuing growing market globally. In this segment, efficiency of energy conversion will both improve output and address environmental concerns. Fuel gasification (i.e., coal-to-gas) will also rise in response to cleaner emissions demands. Renewables will play an increasing role, as in segments of Europe where commitments are to generate 10% of the total electric power demand in the next few years. Nuclear energy, already on the rise in many regions, will also make a return in the USA.      

3. How can a person be entrepreneurial within a large corporation?

Entrepreneurial opportunities frequently present themselves in the corporate world. One has to be open to seeing and capitalizing on them. In my career, most often the change opportunities came from recognition that a person is multi-dimensional and can create value by increasing the “sum of the parts.”

4. You worked at least one summer making sugar in a factory on the East River. Do you recommend that an engineer gain experience working on the shop floor?

The experience at the Domino Sugar factory was, as they say in the commercials, "priceless." Technically, I learned the importance of the man/machine interface and of training after getting a 440V shock while resetting a circuit breaker. Organizationally, I learned that unions play an important role in the labor/management relationship, but that all roles need membership-driven balance. I saw that first line management, in this case the shop foreman, has a tremendously difficult role and that good performers here can make or break an organization. Practically, I learned the value of hard work. Loading a rail car with 100-pound bags of sugar by hand or scraping an industrial filter after the initial processing of raw sugar inside a four-story boiler are constant reminders of respect for true labor. 

5. Please comment on working for an enterprise that has been purchased by a European company.

In 1998, Siemens AG purchased the power generation segment of Westinghouse. We were blessed with two factors that made the integration of two companies with long legacies (over 110 years each) possible: good leadership and a robust market. The leadership philosophy, backed by action, was that we would not make Westinghouse a German company nor Siemens an American one. The goal was to take the best elements of each company into a globally-managed, regional-acting enterprise. The market boom in the US from 1999 to 2001 then gave us a great platform to implement the philosophy. Fulfilling customer orders distracted us from the inertia preventing change; perhaps this is why some other multinational integrations failed.

6. How is your German?

Thankfully, the official language of Siemens PG is English. Early in the integration, I tried to learn German. This was as unsuccessful as my learning French in high school. At this point, I can manage in a restaurant but little else. 
   
7. As you move into management, do you worry about losing technical expertise?

It is important in this context to decide what career path you desire. Personally, I always looked at career progression as gaining expertise.

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

• Intellectual curiosity
• High energy and passion
• Ability to inspire others
• Determination
• Business-minded sensibility

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

Some years ago there was a movie called "Defending Your Life". While a comedy, the premise was that fear prevented us from using the full potential of our minds and prevented us from going to heaven. This makes sense to me. In a personal context, when running track in high school it was wanting to win that drove me rather than fear of failure. I still subscribe to that philosophy today.   

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?

You have already given the answer in the question.  Entrepreneurs inherently accept that failure is part of—and not the end of—the process. 

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

The Asian concept of yin and yang—of balance in all things—has always been attractive to me. Doing is far different from knowing, however. Stephen Covey's "Seven Habits" and his 'roles and goals' exercise in the book is a good tool to organize your behaviors with your intentions. From that exercise, my faith in God has taken a more important position in my life balance. And interestingly, my career accelerated with this improved balance.

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

Jesus Christ, my parents and my wife have had the greatest impact on my development as a human being. Professionally, it would be Dean Hazeltine (for giving me an opportunity to grow); my first manager at Westinghouse, Don Akey (for giving a fellow civil engineer a job in mechanical engineering); and Brother Vanard, a teacher in high school (for assuring that intellectual curiosity would be a part of my DNA).    

13. Senior year at Brown you lived among farms in Seekonk. Do you live in a rural area now?

For a person who grew up in Brooklyn, NY, nearly everywhere is a rural area. But seriously, we now live in Oviedo, FL, which is a suburban area northeast of Orlando. My job requires me to spend roughly 140 days per year in Erlangen, Germany, where I maintain an apartment in a rural area—very much like Seekonk. Again, an example of the balance objective.   

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© BrownHEN.org – 2007

Interview with Charlie Kroll, President & CEO of Andera, Inc.

BrownHEN interviewed Charlie Kroll, Brown '01, President & CEO of Andera, Inc., Providence, RI

1. Charlie, You have taken a company that was started when you were an undergraduate into one with 30 employees, 50% annual growth, and a revenue run rate of $4 million. You were featured in the Providence Journal as one of "Rhode Island's Outstanding Entrepreneurs." You were named by the United States SBA as the Young Entrepreneur of the Year in New England. Does it get any easier as one achieves more success?

It doesn’t get easier, but the challenges certainly change. We’re still a small company, but we’ve evolved from pure startup mode into execution mode and as a result, we’ve needed to evolve our thinking and strategy. Early on, it’s much more about getting everyone to buy into the vision and believe you can do what you promise. In execution mode, it’s more about managing limited resources to deliver on your promises. Neither mode is easy and both are rewarding when you start to feel things click.

2. Some of the money you raised come from Rhode Island state agencies that are set up to support entrepreneurial activities. Please comment on dealing with such organizations.

The state agencies have been tremendously supportive of us, but my experience is that they need to believe you can in turn help attract talent, money, and jobs to the state. Our biggest supporter has been the Slater Fund, which has both invested directly in us, as well as brought other angel investors to the table. We’ve also found the Rhode Island Economic Development Corporation, the Providence Economic Development Partnership, and the Business Development Company of Rhode island all to be helpful, providing us with much-needed working capital loans when we needed them most (and traditional lenders wouldn’t touch us).

3. Banking is perceived as a conservative business lead by people a good deal older than you. Do you believe your youth (and youthful appearance) is an asset or hindrance in promoting Andera?

It probably helps in most circumstances today, now that the company has a more experienced management team and a solid track record. A few years ago, before we had as deep a team or customer base, I think my inexperience was an obstacle, particularly in the years right after the bubble. Today, I think people are more accustomed to seeing young entrepreneurs succeed—the trick is knowing what you don’t know and filling those inexperience gaps with a great team.

4. Andera's business model has certainly evolved from the early days when you designed web sites for FM America—a radio station in Japan—and Trinity Repertory Theater in Providence. Please comment on how you learned of new business directions and recognized their potential.

We did a complete 180-degree turn. We started the business during the bubble as a Web development firm. Once the bubble burst, it was clear we’d need to develop our own intellectual property if we were going to grow. Fortunately, two of our Web development clients (both banks) had engaged us to build them custom online account opening applications nearly simultaneously, and the idea grew from there. That was early 2002, and our first month with zero Web development revenue was August of 2006 – a four year transition that seemed like forty. We needed that much time since we didn’t raise a lot of outside capital to finance the transition. Almost all our initial product development, sales, and marketing was funded out of Web development revenue during that four-year period.

5. How were you able to attract a very strong staff?

It’s never been easy to recruit good people, including today. We haven’t benefited from a lot of the characteristics that typically attract great people, like a billion-dollar exit potential (we’re trying to build a focused and successful business, but not the next Google), a sexy location (we’re in Providence, not Silicon Valley), a lot of money (we’ve never raised significant capital), or until recently even a strong vision (people used to see us as a Web development firm). These were definite headwinds to team building. Gradually, as our vision crystallized over the last few years, and our customer base and reputation grew, we were able to recruit a few people that became key contributors, and it evolved from there. Today, we have almost no luck with job boards, limited luck with headhunters, and extraordinary luck with employee referrals, which is the way I think it should be when things are humming.

6. You must get nibbles from larger organizations that want to buy you out. How do you respond?

Simple. We are focused on building a successful company, and we’re happy to listen to ideas but are not looking for them. We have a lot of growing to do before changing that orientation.

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

I second Ralph Rosenberg’s answer to this question.

For BrownHen readers, Ralph’s Rosenberg’s answers from our August 2007 interview were:
• Can deal with rejection/disappointment
• Good “big picture perspective”
• Even-tempered disposition
• Good sense of humor, and
• Ability to lead and motivate people.

8. 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 the best (and arguably, only) way to learn. I think I’d be better equipped to lead a company if I had previously been part of one that failed. Short of that, I’ve had plenty of lesser failures that guide me in the decisions I make every day.

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

To me, fear is a very passive word. Are you afraid of missing a payroll or losing a deal to a competitor? Well, that implies that you have no control over such things, which usually isn’t the case as an entrepreneur.

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

An insight would be for entrepreneurs or company leaders to start a blog and maintain it regularly. I started mine last year and have found it to be a great way to personalize the company and provide context to the otherwise black and white world of marketing collateral and press releases. If you’re balanced in your message, exposing your blemishes as well as bragging about your strengths, THE BLOG humanizes the company and gives the impression you’re open and not hiding anything. It goes a long way.

11. Has becoming a father significantly changed your life?

Absolutely, having a son is the best thing that ever happened to me. He just turned five months old, and my wife and I are having such a blast learning how to be good parents.

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© BrownHEN.org – 2007

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