BrownHEN / BrownHEN.org

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 Ralph Rosenberg, Managing Partner of R6 Capital Management L.P.

 

BrownHEN interviewed Ralph Rosenberg, Brown ’86 and Managing Partner of R6 Capital Management L.P., New York, NY.

1. Ralph, have just gone from a highly respected large enterprise to your own entrepreneurial venture. What advice do you have for others who are thinking about making the transition?

When making a decision like this, be sure you are prepared to deal with all of the small details that go into starting a business. Also be sure you are prepared to be emotionally invested 24/7. The successes lead to the most satisfying emotional highs and the disappointments lead to emotional lows.

2. Goldman Sachs employs many Brown graduates and a writer from FAST COMPANY magazine once commented on the large number of entrepreneurs he knew from Brown. How can a Brown graduate best leverage her/his undergraduate experience?

Learn how to think critically—do great analysis and then step back and view the big picture. Also learn great presentation skills—both public speaking and written.

3. You have done a great deal for Brown. What motivates you to make such a major commitment?

I think we all have an obligation to support the institution so that future generations get the benefit of an even better experience than the one we had. Also we all benefit from the “aura” of the Brown reputation. Let’s do what we can to preserve it.

4. One reads much about ethical issues in the financial industry, as well as other industries. How do you deal with situations where someone—whom you want to continue to work with—asks you to do something you do not believe in?

No matter what field you pursue, integrity and honesty has to be the core philosophy. In the example you are giving me, I would say “I’m not comfortable doing what you are asking me to do, sorry.”

5. You must have looked at many proposals in your life. What advice do you have for an entrepreneur preparing a proposal or business plan?

Lead with your differentiating strategy. Keep it brief, yet substantive.

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

• Can deal with rejection/disappointment
• Good “big picture perspective”
• Even-tempered disposition
• Good sense of humor, and
• Ability to lead and motivate people.

7. Any thoughts of going into business with your brother, Harry?

I’m a big believer in keeping family and business separate. In fact I’ve already told my kids that they can’t work with me. I’ve seen too many tragic situations where business has divided families.

8. What is the latest insight (about life, work, play) that you picked up and would like to share with BrownHEN? If not, do you have a motto that you would like to share with BrownHEN?

Keep your job in perspective. It’s not life and death.

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© BrownHEN.org – 2007

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 Chad Billmyer, Director, Nelnet, Inc.

BrownHEN interviewed Chad Billmyer, Brown '01, Director of Peterson’s High School Solutions, Nelnet, Inc., Lincoln, NE

1. Chad, your startup Foresite Solutions has merged with a much larger organization, Nelnet. Do you feel you can still be entrepreneurial in the context of a larger organization, and if so, how?

Absolutely. Part of the attraction to Nelnet—the company that acquired our startup—was their entrepreneurial culture. In fact, we were merged into a division that has a charge to develop new products and businesses. Not all companies embrace entrepreneurial spirit or have the risk tolerance to innovate from within as Nelnet does. For every business opportunity, we analyze whether to build, buy, or align. I have had ample opportunities to pitch new business from within the walls of our new parent company.

2. What advice would you like to share with aspiring entrepreneurs?

You will need partners to support you. Daily obligations and needs grow quickly. A good set of partners can balance the enviable tensions that exist in every decision that the start-up will need to make. For some decisions, emotional influences may lead to a non-optimal decision. A good partner can offer objective decision-making when one partner gets too emotionally invested in a particular decision.

You should also sign a founders’ agreement early. From the first date of inception, each day that passes the company will inevitably get more and more successful and more dollars will be involved. With each day that passes, it will become harder and harder to agree to and sign a founders’ agreement. A simple founders’ agreement can cover basics such as whether inventions belong to the company and when and how a founder may exit the company. The agreement can always be amended, but far too often, the absence of an agreement does more harm than good.

3. When you were at Brown you were a leader in campus activities. How did that experience relate to your entrepreneurial success? Do you recommend people wishing to be entrepreneurs be active on campus?

I highly recommend active campus activity involvement for prospective entrepreneurs. I would argue that there isn’t a class at Brown that can teach you how to get the people around you to perform at their highest potential. In many ways, this is what leadership is about: setting up your peers for success. Leadership skills grow from experience, and a campus activity—the Brown Daily Herald in my case—is a great laboratory to develop leadership skills that will be critical for the business to succeed.

4. What areas of software look promising for entrepreneurial ventures now?

I like to read the blog techcrunch.com on a daily basis to track some of the newest and most innovative Web-based software ventures. I am often inspired by start-ups I read about and try to find ways to apply bits and pieces of their business models to a business issue I might be working on. I also get a daily Venturewire.com e-mail each morning to track what is getting funded.

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

I can’t help but reference a few of the qualities found in a great document on this topic authored by Fred Beste at Mid-Atlantic Venture Funds. The document is titled, “The Twelve (Almost) Sure-Fire Secrets to Entrepreneurial Success.” Fred includes qualities like: “they have a sound knowledge of their marketplace, they’ve got fire in their bellies, they hire smart, and they have a sound knowledge of the financial dynamic of their companies.” I’ll add one of my own: they know when not to reinvent the wheel. 

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

In general I see fear as more of a hindrance than a motivator with one exception. I sometimes find that I am motivated by the fear of failure. I am not coming up with an example of how fear has played a factor in my path. I presume that means that fear doesn’t play a major motivating or hindering role for me.

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

A recent boss would often say, “I see it as my role to set you up for success.” To date I have led a few teams of a decent size. I find this motto to be a wonderfully concise way to describe how to make choices as a people leader. 

8. What are the biggest differences between life on the East Coast and the West coast?

I grew up and obviously went to Brown on the east coast. I moved to the west coast three years ago. In a business sense, it feels like the west coast business day is shifted forward. It starts later and ends later. This doesn’t apply to me since I work with many people on the east coast and often join calls at 6 or 7 AM. Life runs a few beats more slowly on the west coast than the east coast. People walk a few beats more slowly and have a slightly less urgent sense about life.    

9. Do you still drive a Hybrid?  Is it the same one?

Yes, I still drive a hybrid car. Back in 2001, I was the first person I knew with a hybrid. It was a two-seater Honda Insight. I now drive a Honda Civic Hybrid. I found I needed a back seat on occasion. I bought the hybrid more for the engineering than for the environment, not that there’s anything wrong with lower CO2 emissions.

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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 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

Interview with Marc C. Bergschneider, Owner, Starboard Capital Partners, LLC

BrownHEN interviewed Marc C. Bergschneider, Brown '73, Owner, Starboard Capital Partners, LLC, Southport, CT.

1. Mark, your company, Starboard Capital Partners, acquires business and enhances their asset values. Please describe how you identify promising businesses to acquire.

We have a network of brokers, lawyers, current and former businesses and other private equity houses, which feed us deals. We probably look at more than 100 possible transactions in a year and do 2-3.

2. The portfolio of Starboard Capital Partners includes enterprises in a wide range of businesses—construction to cosmetics to high technology. How did the firm gain the expertise to work in so many different fields?  

The professionals at Starboard—having been prior investment bankers— have a wide range of prior experiences encompassing an array of businesses. In addition, as you work on transactions, you gain the knowledge to understand a business and then you make sure you have capable senior managers to actually run the businesses day to day.

3. I assume you raise funds for each deal separately. Why can Starboard Capital negotiate better terms than the acquired company could on its own?

Most companies who are acquired need equity investors. Because we understand the goals of the management as well as the goals of numerous equity funds, we can match up parties well. It is not that we do it better; it is that we can do it very well with the transactions we complete.

4. You were at two big firms earlier in your career. Do you think that experience is essential for success in a smaller company?

No, but it helps to have a broad perspective and that type of experience works.

5. You have made, and are continuing to make, major contributions to athletics at Brown, in particular crew. Why is the Brown Rowing Program important to you?

Brown and Brown crew were fundamental in my ability to pursue this career. The academic education was, of course, very demanding but the crew created physical and mental challenges as well as taught teamwork under pressure, all good things for life.

6. The Brown Rowing Program has excelled despite competing against bigger institutions or institutions with a much bigger endowment. What lessons can be learned from that success?

If you work hard, have the right tools, and have the right attitude you can achieve a lot. Simple but that is the right answer.

7. Do you still row? If not, do you stay active in other ways? Does staying active matter?

No, and my buddies give me grief over that. I think I should do more and have frankly been a bit lazy about it. I think staying active is a good thing.

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

• The ability to take no for an answer and keep going
• The ability to recognize what no means and adapt
• Belief in yourself
• Find capable people to help you and it is impossible to do alone
• Go to Brown.

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

I would rather think of reward than fear. Being afraid of failure is a motivator, but reaching a realistic goal is a better motivator. Break projects into pieces and work on them one at a time to get to the big goal.

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? 

It depends on the setbacks. Always be prudent about setbacks.

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

Life goes in segments. If one segment fails, it is not certain that another one will. In fact, with experience of failure, success is more likely on the next segment.

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

• I am not sure I can limit it to three, but certainly my crew coach and supporters of the crew (including Hazeltine)
• A professor at business school
• A partner at Kidder Peabody where I started in investment banking, and
• My wife.

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© BrownHEN.org – 2007

Interview with Adam Carson, Director of Finance, Intuit

BrownHEN interviewed Adam Carson, Brown '96, Director of Finance, Intuit Inc., Mountain View, CA.

1. Adam, you worked at GE and now have an important position, Finance Director, at Intuit. These companies have quite different histories. Do you find their cultures very different?

I actually find the cultures very similar because both Intuit and General Electric expect a great deal from their leaders, are open to ideas from all levels of the organization, and heavily emphasize developing people. Of course there are divergent styles within each organization due to the differences in company size, markets, and types of products (knowledge versus manufacturing/financing.)

Intuit is fortunate because our founder, Scott Cook, remains as a very active leader of our business. Scott is the personification of Intuit’s values—just as every founder is the driving cultural force in their business. When someone pours their soul into an organization it is inevitable that there is tight alignment between their personal values and the culture they create for that organization.

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

I’m going to reframe that question into “How can you better control your destiny within a large organization?” because the word entrepreneurial can be interpreted several different ways.

Decide to care about the well being of the entire organization.

Own the concept that it is your organization (although it happens to be a large one where you don’t call all-the-shots-all-the-time.) Build your skills and think how to grow the entire organization—even though you might only work in a small corner.  Solve problems and communicate in ways to make the entire organization stronger. 

The one decision you can make entirely by yourself is your mindset. When you decide to have the mindset of an owner and consistently behave that way, it will be noticed. When others do notice, share your vision and ask for their help. Large organizations require more than one person to make a change.

3. When you were at Brown, you were interested in team building and experiential learning. Are these aspects of management important to a Finance Director?

These aspects of management are critical for all leaders because we need to work with others to accomplish any difficult task or create lasting change. The process of creating an organization where people show up to give the best of themselves and work to help others grow is difficult. Many things can hurt this delicate process. Leaders can use team building tools and experiential learning to establish a common set of values and behaviors to help people consistently work together towards a goal.

4. What do you enjoy the most about your job?

My number one joy is when people invent new solutions or find better ways to accomplish a goal AND then share the discovery with others.

That behavior means the organization is firing on all cylinders:
• People are so engaged in their jobs that they experiment with changes
• The culture encourages new ideas, embraces risk and does not fear change
• People want the entire team to win and they share broadly

5. What do you feel you gained from business school?

My approach is to constantly learn and expand my awareness in areas where I know very little. Learning directly correlates to an increased number of options I have when I need to react to a situation. Increased options can produce more appropriate responses to ambiguity.

Business school was an opportunity for me to acquire a great number of tools in a very short time. Oh, did I mention the debt?

6. Are you involved in social service work outside of Intuit? Why?

Absolutely, giving to my communities is an important aspect of leadership because it demonstrates my caring for others and helps to foster trust and credibility. My activities are creative, social, and educational (improv comedy, alumni involvement, and teach leadership at Santa Clara University.)

7. How, specifically, can small business owners benefit from using Intuit's products? Are you concerned that they do not understand how they would benefit?

I am glad you asked! We are incredibly customer focused and work to help small businesses get the most from our offerings as possible with support, training opportunities, and a thriving network of accountants.

Intuit has many products and services that help solve problems for all types of businesses – from basic cash flow management via our free SimpleStart software to complex system integration for Mid-Market firms via our Solution Provider Network.

Our QuickBooks product line is known for both ease-of-use in managing financial tasks and an interface that enables owners to see their firm’s big picture at a glance. Ease helps firms save time and money. In addition to our products, Intuit hosts several communities designed to help small businesses. Our jumpup website (www.jumpup.com) is designed for entrepreneurs thinking about starting a business.

8. Do you use Intuit products in your personal life?

Absolutely! Quicken is a near daily ritual.

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 not a motivator for me and I do not use it to motivate others. The emotions and behaviors fear creates are exceptionally strong and come with very steep costs to individuals and organizations.

Like many leaders, my best moments are now possible because I encountered difficult times and, as a result of those challenges, decided to grow and change.

10. Do you have a mentor who has helped you in your career path/personal development? Who are three individuals (dead or alive) who have influenced you?

I have several mentors that I go to for advice on difficult issues. In addition, I am constantly trying to observe leadership behaviors I can apply in my life.

Three people who have influenced me are:
• Dean Hazeltine – Constantly learn & teach; treat everyone with dignity; live by the highest ethical standard
• Rebecca Stockley (improv coach) – We are each unique; embrace failure because it means you are taking risks; work hard to make your partners look great
• Paulo Coelho (author) – Be a warrior of light; make mistakes; rise to challenges; both know and act on what is best for yourself

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

Suzanne and I just celebrated the one month birthday of our twin girls. So lately my thinking is about this new journey.

A mentor of mine shared a quote recently that I have been pondering, “Build a strong and tough support system and give far more to it than you receive.”

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© BrownHEN.org – 2008

 

Interview with Naeem Zafar, Partner at Concordia Ventures

BrownHEN interviewed Naeem Zafar, Brown '81, Faculty at Haas Business School, University of California Berkeley, and Partner at Concordia Ventures, Cupertino, CA.

1. Naeem, you have had a highly respected career as a serial entrepreneur. You were CEO of six different companies, I believe. How are you finding being CEO of a consulting company, Concordia Ventures?

I worked at six startups and I was CEO of three of them. One went public and others went through various traumas and exits. Concordia is aimed at transferring my life experiences to other entrepreneurs. I am trying to bring several accomplished entrepreneurs from various disciplines to join me at Concordia where we can advice advise other entrepreneurs who are at the early stage of their learning curves. My work at Berkeley feeds directly into what I do at Concordia. It is liberating to be running Concordia. It is much less stressful than being the CEO of a venture-backed company, yet it is even more exciting and engaging. It is a tremendous learning opportunity as I meet the best and the brightest from all new technology areas. 

2. How can an entrepreneur gain the most benefit from a consultant?

Each consultant offers some area of expertise. As an entrepreneur you need to be able to listen to advice from various sources but you must have enough conviction of your own so that you can evaluate and select what works for you. All of us have our own life experiences. That is why entrepreneurship is not a cookie cutter recipe. It is our own journey but a consultant, once carefully selected, can accelerate our learning and reduce our risk in this journey.

3. The United States has a reputation for being especially entrepreneurial. Is this reputation deserved? If it is deserved, how can it be maintained? If it is not deserved, what should be done?

It is well deserved. There are four key factors that contribute to this and if we maintain these factors we will continue to have the edge and the well-deserved reputation.

a) No stigma of failure. Unlike most places in the world there is very little stigma associated with failure, In Silicon Valley there is no stigma. A failed entrepreneur is more valuable as she/he is not likely to make the same mistakes again – someone else has paid the tuition for his/her learning.

b) Access to capital. It is much easier to raise venture or angel capital in the U.S. than anyplace else. Partly because sharing risk as an investor is in the American psyche. This is how we grew this country ahead of Europe in the 20th century. There are many entrepreneurs who made it big and now are willing to invest to help see new technologies take hold. They understand technology and risk. They help with capital and advice. Our venture industry is the most evolved in the world.

c) The eco-system. The process to start a venture is much easier in America and especially in Silicon Valley. At a well-attended party any Saturday night you probably have all the people you need to start a company. From techies to experienced CEOs, to marketing experts to lawyers and accountants—all have strong networks; and within two degrees of separation one can assemble a team in no time. We take this for granted but it is very unique to us. The systems are set up to make it easy to start companies. The way we can grant stock options attracts a lot of talent.

d) Excellent Brain trust and access to markets. We are lucky that we have an excellent higher education system. Not only do we pour well-trained people into the workforce each year, we attract the best and brightest from all over the world. The U.S. also have the homogenous market of 300M people that is unlike anyplace in the world. If you can sell a product here it gives you the scale to be able to sell it anywhere in the world.

Obviously our immigration policies can put the kibosh on some of these factors. That can hamper our future growth. Changes in taxation can impact our venture capital activity and our ability to grant stock options. These stock options are the essential currency that drives millions to work 70 to 80 hours per week for years and break all the rules needed to achieve new breakthroughs.

4. I believe you arrived at Brown three days after coming to the United States. What was your biggest surprise about life in the United States?

We all grew up watching American TV and movies in Pakistan so much of what we see in the States does not shock us. Nevertheless it was surprising to see that America was not like NYC or the Wild West. People were simpler, happier, unpretentious, and welcoming. People were warm and willing to help. But perhaps the biggest surprise was to get used to people smiling and saying hello in the street for no reason at all. This was not normal to see for me. I was always trying to draw a deeper meaning into each hello and sometimes giving a more complete answer to each “hello, how are you” then was expected!

5. You teach entrepreneurship in the MBA program at Berkeley. A common piece of conventional wisdom is that entrepreneurs are born, not made. What aspects of entrepreneurship can be taught?

Many traits of what makes an entrepreneur are innate. But the method still needs to be learned. We teach about the method (the process) of starting businesses. We teach how to reduce your risk by doing your essential homework. How does an entrepreneur approach various aspects of business versus a professional in a corporation? The to-dos include a long list that starts with doing basic research on your idea, developing a scalable business model, hiring, financial planning, and thinking about exits. We arm the entrepreneur with this knowledge and our own experiences to help him/her be more successful with fewer hiccups.

6. Your companies have been in several different high technology fields and you have written scholarly articles about starting small businesses. You seem to have time to be involved in professional activities. What is your secret about learning new ideas quickly?

Asking a lot of insightful questions and listening well are essential to fast learning. You must also be very good about time management and selective consumption of information. If you are not careful you can drown in too much information. You must develop a technique to quickly compartmentalize and index information in order to be able to access the information that you gathered.

7. Do entrepreneurial opportunities still exist in electrical engineering / computer science fields?

Is this a trick question? Of course, we have not even scratched the surface yet. We are now in the field of EE and CS where we were in 1920 about automotives and aviation. You have seen nothing yet. We still think of computers as things like we looked at internal combustion engines in 1920s. Today we don’t talk much about engines but we deal with myriad things that use engines. The same thing will be true about computers. There will be hardly a discussion about computers. There will be convenience appliances, highly connected and consumers of information that will make our life easier, more connected and our work processes automated.

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

• Perseverance
• Clarity of objective
• Resourcefulness
• Strong desire to bend rules or make your own rules,
• Salesmanship at all levels.

I describe an entrepreneur as a person who is willing to pursue an opportunity with the resources that he/she does not currently control. This definition says a lot. It is about being persistent and finding ways to go around the walls that will come in front of you. Salesmanship comes in various ways. It is about selling your vision to other employees and team members, to selling your ideas to investors to selling your value proposition to customers.

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 can be a motivator or a hindrance – sometimes both, depending on your personality and the situation. My biggest fear is usually letting my investors down or the people whose livelihood depends on my decisions. The families of employees all depend on your actions and results of your decisions. But you must get over your fear, otherwise you will be paralyzed. This is when I seek out my mentors and get advice from people that I trust. You always get through it.

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?

Analyze the situation. Post mortem is key. Figure out what did you do wrong or what you could have done differently. Talk to others and your mentors. Improve thyself. Stop feeling bad and get back in the game. Remember getting a gym membership is not enough to get fit or lose weight – you must participate in the game.

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

The latest insight is about getting intensely productive with your time. This is your most important asset. Constant email is a terrible thing to distract you and Instant Messaging (IM) is even worse. I want to automate things in my life and get control of my time so that I can use it to do things that excite me and are rewarding. Limiting distractions, limiting meaningless television, unnecessary meetings and conversations that are pointless must be limited and eventually eliminated. I am reading this book, Four Hour Work Week, which speaks to me and what I had been trying to do for the last couple of years.

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© BrownHEN.org – 2008