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Peeling away the layers of a great CEO

professional Peeling away the layers of a great CEOBy Denzil Doyle

In my last article, I discussed the tendency of key stakeholders in a high technology company to call for the CEO’s resignation at the first sign of trouble, particularly if the CEO is a technical person who lacks “business management” experience. The pressure for change is usually strongest from the financial community. My advice to a board of directors that must deal with such pressure is to remain focused on the qualities that any good CEO must possess regardless of his or her background, namely leadership, management, technology knowhow, and marketing knowhow.

I cited the example of Ken Olsen, the founding president of Digital Equipment Corporation, who came under severe criticism from Wall Street for turning in a bad quarter shortly after the company went public, despite the fact that he had built a company with sales of over $100 million in less than a decade. (That was the equivalent of over $1 billion today.)

Ken decided to go to New York and address his critics directly. He started with a lecture that went something like this:

“I understand that some of you want me fired because I am no good with the numbers. Well, I want you to know that when the company was very small, I was both the purchasing manager who bought the components that went into our computers and I was the sales manager who set the price of those computers and the modules that went into them. In fact, we sold the modules as a separate product line. I used to buy a component called a pulse transformer for a dollar and have our production people mount it on a printed circuit board and sell it as a module for $10. I soon learned that that nine percent of profit really added up.”

The financial people thought he was a kook and left him alone after that while he went on to build a multi-billion dollar company.

Those of us who knew him personally would confirm that he had the four CEO qualities in spades and if the financial people had listened carefully they would have recognized them as well. As a leader, he demonstrated that he could wear many hats simultaneously and he recognized the value of humour in his communications. As a manager, he demonstrated that he did indeed understand the numbers. As a technical expert, he understood what went into the computers, and as a marketing expert, he knew what the market would bear.

Hopefully, the financial people came away from the meeting knowing that a good high technology CEO is likely to be a very complex person who is capable of delivering more than management knowhow.

Image: Best Investments for Beginners

Denzil Doyle’s involvement in Ottawa’s high technology industry goes back to the early 1960s when he established a sales office for Digital Equipment Corporation, a Boston-based firm that had just developed the world’s first minicomputer. The Canadian operation quickly evolved into a multi-faceted subsidiary. When he left the company in 1981, Canadian sales exceeded $160 million and its employment exceeded 1,500. In his next career, Doyle built a consulting and investment company,Doyletech Corporation, that not only helped emerging companies, but built companies of its own. In recognition of his contributions to Canada’s high technology industry, he was awarded an honourary Doctorate of Engineering by Carleton University in 1981 and a membership in the Order of Canada in 1995.

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April Roundup: What does it take to get technology to market?

04d calendar april 2013 red 300x215 April Roundup: What does it take to get technology to market?By Leo Valiquette

Last month’s lineup featured great posts on how established companies should innovate, a startup CEO’s tips for wooing investors, the risks of discounting your product and the need for philanthropy to be a natural part of doing business. And of course, there was plenty of sage advice on what it takes to make marketing work.

In case you missed any of it, here is a handy recap of our posts, as ranked by the enthusiasm of our readers:

April 18: In search of that Entrepreneurial Spark, by Maurice Smith

April 23: What have you done for someone else lately?, by Leo Valiquette

April 11: Want more business from your website? Here are 6 things your customers need to see, by Tim Peter

April 24: A startup CEO’s tips for wooing investors, by John Hill and Leo Valiquette

April 25: The folly (or possibly the wisdom) of discounting, by Francis Moran

April 10: Best of: The saddest marketing story I’ve ever heard, by Francis Moran

April 17: My top travel tips, by Francis Moran

April 8: When is it time to say, ‘Our CEO’s got to go?’by Denzil Doyle

April 16: The imperatives of leaders, leadership and leading, by Bob Bailly

April 29: In it until everyone crosses the finish line, by Leo Valiquette

April 15: What an entrepreneur can learn from a literary conference: Part III, by Leo Valiquette

April 4: Trademark hygiene: A cautionary tale, by David French

April 30:Patent harvesting versus mandated innovation, by David French

April 3: ‘You can’t cross a canyon in two leaps’, by Francis Moran

April 2: Best of: Just the facts … no, these facts, by Leo Valiquette

April 9: What an entrepreneur can learn from a literary conference: Part II, by Leo Valiquette

Image: April 2013 Calendar Printable

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The imperatives of leaders, leadership and leading

leadership 300x300 The imperatives of leaders, leadership and leadingBy Bob Bailly

“Men make history, and not the other way around. In periods where there is no leadership, society stands still. Progress occurs when courageous, skillful leaders seize the opportunity to change things for the better.”

Harry S Truman, 33rd president of United States (1884 – 1972)

Over the last several months Canadians have watched the eldest son of Pierre Trudeau move from the fringes of the Liberal Party to become its newly elected leader. After he garnered 80 per cent of the first ballot votes at the party convention last weekend, Justin Trudeau has finally been able to overcome the disdain of his opponents and the media. But as journalist Michael Den Tandt observes, “the latter will not last – unless Trudeau proves to be as effective a leader as he is a campaigner.”

But what constitutes an effective leader?

“Management is doing things right. Leadership is doing the right things.”

Peter Drucker

No other topic in modern business literature dominates as much as leadership. As historian and political scientist James M. Burns wrote, “leadership is one of the most observed, yet least understood phenomena on earth.” Not only is leadership a universal human trait, it is also observed throughout the animal kingdom. Even guppies have been observed to have dominant individuals that “lead” others to new resources.

Over the last several years I have spent considerable time researching and teaching about the evolutionary social and organizational sciences. My particular interests lie in the fields of neuroscience, anthropology and evolutionary psychology to see how evolutionary thinking can be usefully applied to understand modern business behaviour.

From these studies I’ve come to believe that no overarching theory encompasses the natural, biological and social sciences even though all have something interesting to say about leadership. For instance, anthropologists, biologists, neuroscientists, economists, political scientists, primatologists, psychologists and zoologists have been studying various aspects of leadership emergence, yet so far there has been very little cross-fertilization between these disciplines in developing models and theories of leadership that are consistent with each other.

However, I have learned a lot from researchers like Mark van Vugt, who believed that by incorporating evolutionary theory, these disparate disciplines might shed some light on issues of leadership and group dynamics. Van Vugt broadly defines leadership as “a process of influence to achieve coordination between individuals for the pursuit of mutual goals.” Using Darwinian principles, he argues that leadership and followership may be psychological adaptations – or evolved mechanisms – for solving these coordination problems between individuals. He calls this line of thinking “Evolutionary Leadership Theory.”

At the heart of his argument is that humans are highly social animals, and one of the advantages big brains gave our species is the ability to solve some of the social dilemmas our social behaviour demands, such as finding and distributing resources, group decision making, making peace and dealing with enemies. Adaptation strategies to allow humans to survive and thrive in large complex groups would be selected over those that didn’t.

“To reap the benefits and avoid the costs of increasingly large and complex social networks, a host of psychological adaptations likely evolved,” van Vugt wrote. “Some of these are uniquely human such as the capacity for language and religion. Other traits got co-opted and served new purposes such as the capacity for intelligence, laughter, culture and perhaps leadership.”

So what roles were leaders required for? And how does a person like Justin Trudeau represent these characteristics in our modern world?

Effective leaders clarify the path to help their followers get from where they are to where they want to be and make the journey easier by removing roadblocks.

First and foremost, our hunter/gatherer ancestors moved a lot, so one of the earliest leadership roles necessary for all of our ancestors was deciding where to go. As simple as this sounds, if a group is to maximize its opportunities it must decide where, when and how to move forward. By default, humans, like almost all animals, will follow one of their own deemed best equipped to determine an advantageous path to take. With 80 per cent first ballot support, Liberals seems convinced that Trudeau knows the right way forward for them.

Effective leaders are adept at conflict management.

Living in large groups creates its own kinds of problems, not the least of which is conflict between individuals. Think of two brothers or two sisters getting along all of the time. It doesn’t always happen. Hunter/gatherers must have had social conflict as well, so the ability to broker or force peace would have been positive for the group. At the Liberal convention this weekend, both Jean Chretien and Paul Martin were present, seemingly healing an “ancient, corrosive blood feud between the two giants of the ‘90s.”

In today’s world, modern managers can and likely should expect to spend a great deal of time in conflict resolution, and should never be surprised by the in-group dynamics of running any business or service.

Leaders play a role in coordinating group activities to defeat other groups.

While peace within the group is crucial, another adaptive pressure facing our species would be to deal with other groups, or enemies. In previous blogs I’ve examined the notion of “them and us,” and modern business leaders certainly wouldn’t take too much convincing that exploiting this trait is essential to business success. Still, it’s useful to remind ourselves of the evolutionary underpinning of this human leadership trait.

Of equal importance is the ability to know when and how to negotiate, to forge alliances or to be diplomatic when necessary. Modern leadership continuously wrestles with the strategies of “war and peace,” with marketing warfare between brands on one hand and mergers and acquisitions on the other. Justin Trudeau’s political leadership obviously requires the same skills and he will be measured accordingly.

Leaders play a role in how to share resources.

Determining how to allocate scarce resources effectively and fairly also requires an ability to lead and avoid conflicts that naturally would arise. For instance, if a large animal is successfully killed, who decides how the meat is shared to the benefit of the group?

Group dynamics being what they were in small groups, it’s generally assumed that distributions were relatively equal. From an evolutionary leadership theory, good leaders would be adept at allocating scarce resources.

Today, however, as a species we seem to have forgotten this evolutionary imperative. But whether incremental or accelerated, modern business and political leaders often feel entitled to leadership perks. And distributing perks to loyalists becomes a juggling act of the highest order.

Additionally, today’s business and political elite are not only accustomed to the concept of highly disproportionate payoffs, many modern leaders even feel entitled to high pay and perks even when their initiatives fail. Time will tell if this is useful for our business evolution, but somehow I think not.

Leaders recognize other people’s roles and contributions to the well being of the group.

It’s probably not too far a stretch to say that from a biological, cultural and evolutionary perspective, individuals have an inborn instinct to defend three things: themselves, their families and their tribes. However, we now belong to many specialty tribes at the same time, be it a political party, a team, a congregation or a host of business or social groups. In other words, we can observe throughout history a greater and greater tendency toward fragmentation, specialization and bureaucracy, and we now recognize that leaders can take many forms and be supported in many different ways.

As Van Vugt writes: “In sum, evolutionary leadership theory assumes that leadership evolved as solutions to distinct coordination problems involving group movement for foraging (scouts), policing in groups (peacekeepers), organizing attacks against out-groups (war leaders), establishing peaceful alliances with other groups (diplomats), managing the group resources (managers), and socializing newcomers into productive and loyal group members (teachers).”

How well Justin Trudeau is able to negotiate this evolutionary imperative will likely determine his and the Liberal party’s political survival.

Image: Internet Monk

Bob Bailly is a Calgary-based neuro-marketing and tribal marketing practitioner, teacher and coach.

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Walking the digital tightrope: The perils of co-branded employees

tightrope 300x176 Walking the digital tightrope: The perils of co branded employeesBy Megan Totka

Before businesses began to really cash in on the power of social media, people were signing up for Twitter, Facebook and MySpace accounts in the privacy of their homes. These platforms allowed a new medium for self-expression, along with networking opportunities. Businesses began to see the advantages of connecting with their customers and started using social media, too.  Just over five years into the social media boom, it is not uncommon to see individual accounts with hundreds, or even thousands, of followers or friends. While there is nothing wrong with being popular in online circles, an unexpected consequence has arisen for businesses: co-branded employees.

Along with large social media followings, co-branded employees often have a popular blog or website. Generally these online personas are associated with a particular industry. This can cause some problems for businesses that have no oversight, but could be connected to these online opinions by association. The Wall Street Journal recently called this trend the “newest management headache,” citing the fact that while co-branded employees can benefit their employers, they often clash instead.

So why don’t businesses just ban the use of social media as it directly relates to operations? While this may seem the easiest answer, it is not feasible. For one thing, many new employees arrive with social media accounts already intact. In some cases, these accounts, and blogs, already have strong followings;  getting rid of them is a deal-breaker when it comes time to negotiate a job offer.

The complexities of hiring an online star

Having a popular online persona in a certain industry is also often viewed as an asset to employers. It stands to reason that an individual with a strong following online can only bring more clout to a company’s reputation. Hiring an online star can also lead to better recruitment of other high-profile employees.

Businesses also face some legal complexities when it comes to banning or limiting social media interaction. More and more, employees are filing legal complaints against employers that try to limit the “free speech” that the Internet provides. The U.S. Chamber of Commerce reported 10,000 cases of reported employment related disputes in 2010 – a record number that was due, in part, to social media disagreements. Employers often find that it is easier to tread softly when it comes to social media and online persona issues than to wind up on the losing end of a costly lawsuit.

But fully accepting co-branded employees as part of a company’s culture is a slippery slope. Without full control of these online locations, a company faces liability issues on several levels. One of the worst is the social media gaffe, which I explored in my earlier post.

These conflicts of interest most often arise from differing opinions. An employee with a strong online following may have drastically different views on his industry than his employer. For example, an insurance company that publicly embraces healthcare reform may face issues with an employee that blogs against the changes. While that employee may spout off in his “free time,” those comments could still be associated with the company, especially if the employee holds a management or executive position.

Managing inflated egos

Another negative effect of co-branded employees comes in the form of inflated egos. High numbers of social media followers or blog readers may give employees high opinions of their worth to the company and industry as a whole. This can lead to an expectation of a higher salary, even if none of the fame directly increases company revenue. Dissension among colleagues can also arise – especially if co-workers feel that the co-branded employee spends too much time networking or blogging, and not enough time handling core work responsibilities. Management must walk a fine line to accommodate co-branded employees that boost business without it appearing to be favoritism.

While company policies can address some of these issues, the impact of co-branded employees – for better or for worse – is still evolving. In the best case scenario, co-branded employees get to keep their online personas and boost their employers’ credibility at the same time. It is certainly a better outlook than facing a discriminatory lawsuit on the part of an employee-turned-online-star. The power of one voice online is often stronger than a corporate mouthpiece. The trick for employers is learning how to harness this strength for their own good.

Image: Inspiringbetterlife

Megan Totka is the Chief Editor for U.S. ChamberofCommerce.com. She specializes on the topics of small business tips and resources, and technology. ChamberofCommerce.com helps small businesses grow their businesses on the web and facilitates connectivity between local businesses and over 7,000 Chambers of Commerce worldwide.

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10 questions B2B companies should ask before selecting a content marketing service provider

By Alexandra Reid

question  300x200 10 questions B2B companies should ask before selecting a content marketing service providerIt’s all over the headlines: B2B businesses are investigating and investing in content marketing en masse.

In fact, B2B marketers are employing an average of eight different content marketing tactics to achieve their goals and are spending more than a quarter of their budgets on content marketing. As a content marketer myself, I understand the appeal and regard it as a superb marketing option for authority-based businesses and for any company for which establishing thought leadership is a critical marketing objective.

But, as I have argued before with regards to social media marketing, marketers have a way of putting the pressure on businesses to adopt (supposedly) new practices. Content marketing done right can be expensive and it isn’t for everyone. Businesses must take a step back, do their research and ask the right questions before diving in headfirst. This is especially important for content marketing because its success rests entirely on the quality of the content produced and how it is shared with the target audience.

If you’re a B2B business seeking content marketing services, here are some questions you should ask, after doing your own research, to ensure you select the right people for the job:

1. Why do I need content marketing?

If the answer is “because everyone is doing it,” run for the hills. The answer should include details on your business, what you are already doing right and how content marketing could support those existing initiatives, details about your industry, what your competitors are doing (if anything), a clear description of your target audience and how you would reach them through content marketing, how content marketing could elevate your business into a thought leadership position, and specifically what you should see as a result of your investment.

2. How have you been successful in content marketing?

Ask for client case studies or specific examples of how content marketing worked for the agency or consultant in question.

3. Can I see some writing examples?

Ask for blog posts, whitepapers, ghostwritten articles, and other content that could demonstrate writing proficiency. Look at the quality of writing itself. While it’s not necessary to look at the specific industry areas the writers have focused on in the past, look closely at style — if you need a solid technical writer, it’s probably not the best decision to hire a fashion reviewer. If you are outsourcing these activities, the writers you hire should be able to learn the details of your industry quickly and mine the internal resources of your business for more in-depth knowledge. That they can write, have the right style, and know what makes for good content should be your primary concerns.

4. Can you define the scope of work?

All content marketing agencies and consultants have different processes and internal capacities for workload. Ask about your responsibilities, what the agency/consultant will take on and overall scope of work.

5. What will you include in the content marketing strategy?

While the scope of work lays out responsibilities, asking about the content marketing strategy will give you a good idea of what it is you are purchasing. While practices may be similar, no two strategies should be completely alike. Ensure what you receive is tailored to the specific needs of your business.

6. How will you promote my content?

This information should be included in the content marketing strategy, but it’s good to get a clear understanding of how your content will be distributed before signing a contract. You should ask: what channels will be used and why, how often will content be posted, how will my accounts be managed, how will my content be managed and how will the agency/consultant ensure my target audience is seeing my content?

7. What is your knowledge in SEO?

This is part of the promotion process. In addition to social media accounts, how will content be created for search engine optimization? Does the agency/consultant have specific knowledge in this area, or have a specialist on call to ensure best practices are being followed? Great content should speak for itself in search engine rankings, but there should be some strategy in place to ensure it receives the best ranking possible.

8. What is your lead nurturing process?

Once your audience sees your content, how will they be led through the sales funnel? If your agency/consultant cannot link their efforts back to leads and sales, run for the hills.

9. How will you measure success?

The definition of success in content marketing can be very broad, depending on your goals, which should be established at the outset of your program. What is your agency/consultant’s definition of success, and what is the measurement process to determine success?

10. What is your management style?

Content marketing programs are for the long haul. Can you see yourself working with these people for a year or more? You should look for an agency/consultant that pushes back. While they are entirely on your side, they should be confident enough in their abilities that they should voice their opinions, tell you when you’re wrong, and send content back edited and full of red ink without remorse.

But that’s just my opinion. What do you think?

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The free tools in my social media marketing toolkit — Part 2: Management & measurement

toolbelt1 287x300 The free tools in my social media marketing toolkit    Part 2: Management & measurementBy Alexandra Reid

In my last post, I shared and reviewed my favourite (free) social media monitoring tools that I use regularly to carry out social media marketing strategies on behalf of clients. Today, I reveal the management and measurement tools I use to organize and keep track of the zillions of conversations I monitor daily across multiple channels.

To summarize, these tools are free and therefore great for small businesses and new ventures. However, they are useless if they are not aligned with a sound social media marketing strategy. They are also far from perfect so we must always cross-examine data with information provided by other tools and sometimes even check information manually to ensure everything is accurate.

I decided to combine my favourite management and measurement tools because many of them do both functions. Technically, some of these can be used for monitoring social media as well. At the end of the day, it’s not so much the tools that matter, but how you use them. These are the ones that I’ve found excel, particularly in the management and measurement departments.

Without further ado, here are my favourite social media management and measurement tools:

Hootsuite and TweetDeck

I explained and reviewed these tools in my previous post on monitoring, but thought it was worthwhile to explain how they are also useful for management and measurement. Essentially, both tools allow users to organize the flood of social media content into relevant “streams” for easy digestion. This is fundamental for time-management, helping you find the right conversations in which to participate quickly with engagement options available at your fingertips.

On the measurement front, Hootsuite beats TweetDeck hands down. With customizable reports, Hootsuite analytics allow users to track follower growth for individual social profiles, monitor brand keywords, measure sentiment (though I’m always skeptical of this) and manage reports from multiple team members. While bit.ly, the URL shortener used by TweetDeck, can integrate with Google Analytics to track click-throughs on links shared through the tool, the amount of data available is inferior to what can be gleaned through Hootsuite.

Google Analytics

This is a great (free) tool for measuring blog traffic that provides detailed information on how many people are coming to your site, how long they stay on a certain page and where they come from geographically and online, whether that’s search engines, direct or social media. With its new Real-Time reports, users can measure the immediate success (or lack thereof) of social media activities, including campaigns.

We use this tool for management as well, using the insightful data to gear blog content towards stuff that our readers respond to. As Google Analytics charts the growth path of your blog over time, it serves as a great resource for content management.

KloutPeerIndex and Grader

These three tools purport to measure influence online. I am reluctant to include them in my measurement system because they are flawed (read my rant on Klout for more information). However, they are the best tools out there for now, and do provide some indication as to when social media influence has increased or decreased, as well as where we stand among all others measured by the same algorithm.

However, these tools on their own don’t provide us with the full picture and shouldn’t be used as a sole means of measuring influence online. The only solution I have found to understand general trends over time is to track Klout and compare those results with PeerIndex and Grader scores. If all three are moving up, I can reasonably assume that what I’m doing is working. If one goes down while the other two go up, which happens on a regular basis, I know there is something happening that is discrediting my results.

Keyword Rank Checker

Very straight forward, this tool checks the ranking of specific keywords per URL for Google and Yahoo. It’s a great tool for optimizing your blog and social media content for search. Keep track of competitive keywords discovered as part of your management activities and measure progress over time.

Google Docs (spreadsheet)

We use simple Google Spreadsheets to track our progress because they are secure, organized and can be shared. For example, we have one spreadsheet that tracks social media contributions each week, including how many blog posts we commented on, Quora and LinkedIn questions we answered, how much content we shared on Twitter, and so on, to determine if we are meeting our goals. At the same time, we track how much time we committed to these activities. We also have a spreadsheet that tracks our Twitter accounts each week, including how many followers we have, how many accounts we’re following, Klout, PeerIndex and Grader scores, how many retweets or mentions we received, and so on. Over time, this gives us a good understanding of how effective our efforts have been and where we should steer our social media activities for greater success.

If you are experiencing any difficulties in monitoring, managing or measuring your social media activities, we encourage you to give us a call.

I’m also always interested in hearing about new social media marketing tools. If you are a new company with a neat and helpful new social media tool, share it here. I love test driving!

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More tribal leaders required


Barbecueing Quest for Fire1 271x300 More tribal leaders required
By Bob Bailly

Has evolution prepared humans to live in the world we have created? Was Desmond Morris correct when he pointed out that, “Man’s biological equipment is not strong enough to cope with the unbiological environment it has created?” Has our transition from hunter/gatherer living in a cave to cosmopolitan businessperson living in a luxury condo been as smooth as we’d like to think?

In my last post, I postulated that humans prefer to live and work in a tribal setting and promised to explore the nuance of this from a modern business perspective. Today’s focus will be on the role of leadership.

Leaders and leadership

So much has been written about leadership from a business perspective that there is a risk of being trite here. Still, I believe modern writing tends to nibble around the edges of what I believe are some core attributes of business leadership. We’ve been trained to analyze a leader’s management style, core competency and desirable traits by looking at human behaviour from a sometimes abstract and at times esoteric point of view based on the business sciences (economics, marketing, management, finance).

However, I am more inclined to look at leadership from a behavioural sciences perspective by considering what anthropologists, sociologists and neurobiologists bring to the debate. What can a more primitive, so to speak, look at leadership teach us?

Tribal leadership

A tribe could be defined as any group of people, large or small, who are connected to one another, a leader and an idea. For millions of years, humans have been seeking out tribes, be they religious, ethnic, economic, political, or even social (think of Facebook). It’s our nature.

Leadership can be defined as the art of motivating a group of people to act towards achieving a common goal. Put even more simply, a leader is the inspiration for, and director of, the action. He or she is the person in the group who possesses the combination of personality and skills that convinces others to want to follow his or her direction.

In business today, however, leadership is often welded to performance and often to an artificial hierarchy. Those who are viewed as effective leaders are those who increase their company’s bottom lines. But all too often, this performance overlooks the organization’s – or the tribe’s – role in shaping the end result.

In our hominid past around three million years ago, our early human ancestors and their tribes were nomadic hunter-gatherers. These groups were likely small – not much more than family or clan living and moving together. They certainly must have been reliant on each other for mutual aid, and to share and combine resources. Their growing brains were starting to be able to manipulate their environment for their mutual benefit. Although competition for leadership may have occurred, current thinking on the subject suggests that despotic behaviour was curtailed because these small groups, likely measured in dozens rather than hundreds, were for the most part egalitarian in nature. Fair, neutral and trustworthy leadership was expected, and likely demanded by tribal members.

How leaders arose

Living in groups has always required some form of social coordination, from finding and distributing necessary resources, making peace, making group decisions and dealing with enemies. Democracy was probably natural. Leaders were chosen or simply acknowledged by the group as leaders because they possessed superior skills and physical attributes – larger, quicker, smarter or more aggressive individuals who could be counted on to do what was best for the group’s survival. Dominant behaviour was probably accepted as long as the tribe was benefiting. Anthropological evidence suggests that this tribal model was so successful that pre-humans were able to survive for several million years. If under threat, aggressive leaders were likely chosen by the tribe, but being a follower had no built in disadvantage – living conditions for all members of the group were very similar, and other than prestige, leaders were living the same life as everyone else. Outrageous behaviour was discouraged or unacceptable.

Leaders arose because they had the implicit respect and acceptance from the tribe. Anjana Ahuja and Mark van Vugt suggest that this adaptive behaviour is also reflected in other species, from fish to birds to chimpanzees, because it gives a survival advantage. Their studies of more modern hunter-gatherer societies also show that gifted individuals are picked in a “bottom-up, not top-down, way. Leadership is fluid rather than fixed, and assigned by peers to whoever is recognized as being adept in a specific domain, from herbalism to hunting” (see Naturally Selected: The Evolutionary Science of Leadership).

But about 7,000 years ago things began to change for most of mankind. Small, widely dispersed groups of wandering hunter/gatherers began to settle down in some key locations in the world as they achieved success in raising crops and domesticating animals. The shift had begun from smaller, family-based tribes where everyone knew everyone else, to impersonal villages, towns and cities where strangers began to outnumber tribe members.

With the growth of permanent settlements came the notion of private property and the roles of leaders changed forever. Chieftains, kings and lords arose and imposed customs, rules and regulations to reinforce their control of the property that “they owned.” The need to protect territory is probably hardwired into humans and is certainly observed in other primate species. But the effect of this social construct at that time meant that crowds became more dense, elites became more elite, and relationships became more impersonal. This in turn also fostered specialization of resources to include military and police to provide security for that property. Today, this so-called need for security eats away incredible and vast resources – worldwide expenditures for arms and weapons, for police and armies far outweigh capital invested in education or health, but I digress.

Many observers agree, this shift from a personal (everyone is known in the tribe) to an impersonal (city-based) society was and is causing the human animal its greatest agonies. As a species, we are not biologically equipped to cope with a mass of strangers masquerading as members of our tribe.

What can we do?

Today, we can still observe the ancient reverence we have for the tribal roles that produced leaders who were great hunters, warriors, mystics, healers and artisans. Only in our time, we have institutionalized hunters and warriors with designations such as politicians, bureaucrats, business leaders, judges, military and police. Mystics have become institutionalized under many guises of clergy. Healers have become our doctors, teachers, and social service professionals. Our artisans include not only artists, but professional athletes and entertainers of all stripes.

But many leaders with these designations today unfortunately expect many more perks and power than our ancient ancestors did. And not only that, they expect to be recognized with compensation for their prowess and effort that far outstrips their other tribe members.

So today’s reality is that despite the merits of the many professionals involved in these practices, we are often locked into some bad practices. Consider grossly overcompensated CEOs and management groups. Consider managers chosen by their boss rather than by their peers. Consider politicians who reward loyalty over good sense … you get the picture.

I believe that what we’re missing is the more natural leadership that arises from the bottom up, but I actually believe we are seeing some signs of its revival.

Someone once noted that the Beatles did not invent teenagers, they merely decided to lead them. Revolutions start when a “someone” looks at the status quo, decides they don’t like it, and then finds a disaffected group to join.

The Internet has eliminated the barriers of geography, cost, and time to find and join a group. Blogs and social networking sites are helping existing tribes get bigger. But more importantly, they’re enabling countless new tribes to be born – groups of 10, or 10,000, or 10 million who care about their favourite actress, or political candidate, or new ways to fight global warming or a pipeline. The Occupy Wall Street protests are a great example of this – organized by and through the Internet but performed on the ground using grassroots democracy. Unfortunately for them, no charismatic leaders have yet to appear to provide a face and direction for this tribal frustration.

And so the key question: Who should lead us?

The Web can do amazing things, but it can’t provide leadership. That still has to come from individuals, people probably just like you who have a passion about something. The explosion in tribes means that anyone who wants to make a difference now has the tools at their fingertips.

If you think leadership is for other people, think again. The tribe will judge your suitability.

And one final thought to consider, leaders don’t need everyone, but they must recognize they can’t do it by themselves. I think it was Seth Godin who once said: “Jesus needed his disciples as much as his disciples needed him.”

So my advice to you is find your tribe, figure out your role and choose your leader wisely.

Image: The BBQ Smoker Site

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How to define, embrace and lever your startup DNA

As part of our ongoing series examining the ecosystem necessary to bring technology to market, we asked serial entrepreneur Jason Flick to share some of his insights on getting technology to market. This is the second of his commentaries and we welcome your feedback.

FM Series banner headART 1 300x145 How to define, embrace and lever your startup DNABy Jason Flick

As I mentioned in my last post, startups don’t have a common culture. This is a myth that’s been created, perhaps intentionally, by the 95 percent of people who’ve never worked for a startup.

Who would want to search out and work for a company that can’t pay much, if anything, in salaries, expects you to work 12-hour days and in the end, has a 50 percent chance of failure? Over the past 21 years I have created four startups, been employed by five others, and mentored and worked with nearly 100. None of them has fit this mould, or any other.

Startups have DNA, just like people. It may not surprise you to hear that a startup’s DNA is in part a mixture of its leaders’ DNA. If you think you merely have “startup culture,” then you’re not driving your business, it’s driving you.

What I will cover here is a process to determine, embrace and lever your DNA. This process is really a distillation of what bigger companies do, except startups can do it without the red tape, months of meetings to bring everyone on board, etc. When I run this exercise in my companies, employees attest that it’s “motivating,” “fun” and “just what we needed.”

Keeping your lean mean startup machine on track

I give much credit for my current success to TEC Canada, a group that I have been a member of for five years. It’s a big part of why I’ve staved off so many opportunities for failure. This process is something other CEOs in this group, our chair and I have worked with and evolved. We feel it’s just the right mixture of vision, goals and tactical actions.

We know you’re very busy, but you need to take time with your key staff – all your staff, if you can – and spend a day on the business rather than in the business. Preferably take everyone off-site; for one of my companies I swapped our services for catering and a meeting room at a nice local ski resort. In my experience, this will be the best thing you’ve ever done for your company. The steps are quite simple, and you can grab the template I use here.

Two quotes that help frame the mind set for your staff:

Roy Rogers said, “I try to avoid lengthy business plans – too much detail clouds simple concepts.” And with credit to architect Ludwig Mies van der Rohe, “Less is more.”

Ask everyone to do a little homework. Each person attending needs to think about the business and put down one to three points under each of the following headings: Strength, Weakness, Opportunity and Threat. Some of you will know of this as SWOT and it forms the basis for the entire day, so take this part seriously. Read up a little; SWOT Wikipedia will help you frame things if you need a refresher. Have someone on your team collect all of these points and put them on sticky notes for the big day.

Here is how that day looks:

1) Who you are now. Here you discuss your company SWOT. Choose someone from the team to facilitate the discussion of each letter and display the results visually. The dialog here is as useful as the end result, so don’t rush it. This will take a fair bit of the morning. The template at the link above includes a sample agenda. Narrow it down to three or four ideas per letter; this is where the sticky notes come in handy.

2) The future. Discuss the beliefs and the economic trends you think are driving your business. For example, at YOU i Labs we believe touch screens will proliferate and be the preferred method of input. If you can’t garner any of these, jump to a coffee break, submit your resignation and run! Startups need passion to succeed through the dark days, and this is that stuff. Expect and drive some good heated debate here.

3) Vision. Look at where you want to be in three or five years. You envision what success looks like — which, by the way, is one of the quickest ways to measure the success of a startup. If they don’t have a vision, failure is imminent. And if your team doesn’t know and agree on what the end game looks like, they are likely running in circles. This is also one of the most motivating pieces of the process. Brian Scudamore, CEO of GOT JUNK, started with one truck and in 2009 was the fastest growing company in North America, with offices around the world. With his team, he painted a clear picture of what success means. It included appearing on Oprah and in what year that would happen. They achieved their goals and he credits the picture they collectively painted as the primary reason why.

4) 10 key strategic imperatives. Having invested the time going through the process above, you are now going to be surprised how the imperatives almost jump out at you. For Flick Software, some of ours were to grow our channel partnerships and hire someone to run them, establish revenue growth targets, and refocus on our target market. At this point, it’s good to go back to the SWOT and make sure each of the three items has an imperative that levers it.

5) This year’s execution priorities. Things start to get tactical here, and the team starts appreciating the link between steps one and five and what they are doing day-to-day in the office. Again, you will find these coming out fast and furious. This could (and should) involve some social media items as well, social media being a great level playing field for startups. For example, commit to 10 new blog posts and five videos, two customers in trials for the new product, new office space, and so on.

6) Goals for the next 90 days. Here the team starts to see why they need to, and want to, rush back to the office and get to work. This is also the piece that’s the easiest and the one I hear the most positive feedback about. In some cases, it’s just your one-year items divided by four; in other cases, it’s a more refined next step for the one-year goals.

Of course you need to compile this in a one or two pager (I have provided a format for you) and you should post the 90-day priorities up on a big whiteboard in the office. Maybe even have a bell you can ring as you accomplish them. Then come back to the one-year goals in 90 days, grab another list and repeat the entire exercise every 12 months.

As a leader in the organization that has completed this process, you can assure yourself that you now have a firm grip on the steering wheel of your high-performance startup and your odds of success have doubled.

Get out there and create some amazing companies!

Jason Flick is co-Founder and President of YOU i Labs and President and CEO of Flick Software, a successful serial entrepreneur and product visionary. Jason has founded half a dozen companies in the past 18 years and is advisor and executive to nearly a dozen software companies. He is passionate about the disruption mobility has created and how businesses can lever it.

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Conventional wisdom, common sense and that feeling in your gut

As part of our ongoing series examining the ecosystem necessary to bring technology to market, we asked Nick Quain co-founder and CEO of CellWand, to share some of his insights as an entrepreneur who has successfully brought technology to market. This is the first of his commentaries and we welcome your feedback.

FM Series banner headART 1 300x145 Conventional wisdom, common sense and that feeling in your gutBy Nick Quain

They are becoming the adages of management gurus and startup experts everywhere. So many popular catch phrases, they make your head spin.

Build a great team.

Know the right people.

Learn from the experts.

Manage your people.

All young business leaders need to learn how to do these things, right?

I say wrong.

While I don’t disagree with everything said about these four topics, here’s why more often than not, you should think, and do, the opposite.

You’re building a ‘company,’ not an all-star team

Yes, the team is important. As Jim Collins says, get the right people on the bus. We hear it all the time. But make no mistake; you are building a company, not an elite group of consultants who charge by the hour. The value built needs to be in the company itself, not reliant on a few key people. Yes, you’ll need some talented people to help build the company, but just remember to actually build a company along the way. Good contracts, processes, strategy, oversight, margins, IP, lively meetings, strategically constructed barriers to entry, a flexible product road map, real culture, and some form of a solid CRM. These are just some of the things that give a company real value. If one or two people can leave your company and drop the value of your business in a significant way, you haven’t built a true company. And yes, that includes you.

As Collins also says, elite leaders build a business that grows in value beyond their tenure. That’s because they’ve built a real business through and through, rather than one in which the value has too much of a direct relationship with the leader. As a bonus, it’s also how you sell a company, because an acquirer will value the business more than they will the people. After all, the business has no say in who owns it, people do.

It’s actually NOT who you know

This is not to say having a robust network won’t help you. It can speed things up, and knowing people who have a great network is helpful too. But if you know with whom you need to connect, you don’t need anyone to make an introduction. The pitch and approach need to be considered and weighed, and you’ll need to be persistent, but I firmly believe you can get in front of anyone without a direct connection.

It’s easier than ever to find out what makes someone tick, their professional mandate and how to reach them. Sure, a quick check on LinkedIn for a mutual acquaintance is worth the 15 seconds, but if there isn’t one, don’t fret. The old-school idea that a network is somehow proprietary or out of reach, and that to tap into it you must work through one of the gatekeepers or connectors, is simply not a reality (if it ever was).

When we started CellWand, we knew absolutely no one in wireless and we had no track record in mobile in any way. And yet we landed industry-first contracts with every national carrier in the U.S. and in Canada.

We simply didn’t care that we didn’t know anyone in the industry, and neither should you.

The experts are often wrong

The first thing many startup entrepreneurs (at least those not so paranoid they think everyone will steal their idea) do is get in front of as many experts as they can to vet their idea. And while this can be invaluable to validate or shift your thinking, too often entrepreneurs get dissuaded from their idea or value proposition because of a strong naysayer. Basically, someone highly respected tells you your idea will never work.

There is a lot to learn from experts and we certainly had the sense to adjust our model along the way based on what we were learning and being told. But I was struck by how often these experts were wrong, in particular those who were so diametrically opposed to our model and, at the same time, knew our space intimately.

But the thing is, they were always looking backwards, not forwards. Their expertise was formed based on a strong understanding of the past. And in this day and age, the past has never been more disconnected from predicting the future. Things are changing so quickly, and new types of models are coming faster and in greater quantities.

So if a VC, angel, analyst or industry guru tells you your idea won’t work, ask why. Be honest with yourself about their thinking, and if you’re still convinced you are on the right track, keep going.

Don’t manage people, manage priorities

One of the better speakers from my TEC / Vistage group bestowed a beautiful philosophy for being a leader and manager. Bob Thomson suggested you need to become your company’s Chief Priority Officer.

The idea is, with the right people in place, you really just need to make sure they are prioritizing the right things. Think of these as “the big rocks” to quote a Coveyism. This got me out of the weeds and prevented me from micromanaging, and just ensured the team was staying focused on what was important and we were all rowing in the right direction. To put this into effect, we employed Patrick Lencioni’s weekly tactical meeting from his book, Death by Meeting.

As a result, our management team has a quick Monday morning check-in with each member going through their priorities for the week. If something is misaligned or too low on the priority list, it is discussed and altered. But with this process in place, it forces everyone to think about their priorities, which is enough to get them to re-align themselves more than 90 percent of the time. And it also means they can go about their job that week, while I do mine, without a lot of other unnecessary interaction and meddling.

So there you have it. Not in line with the most popular way of thinking right now, perhaps, but sometimes drinking too much of the Kool-Aid just isn’t for me.

As co-founder, Nick Quain started CellWand when #TAXI was just an idea on a napkin, and as CEO today, he still drives the strategic direction of the company. Combining his 15+ years of web and mobile experience, with his considerable marketing and sales talents, Nick has been the architect behind the company’s business model, and the catalyst behind its growth.

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Words of wisdom: Another look in the mirror

This is the 10th article in a continuing series that examines the state of the ecosystem necessary to successfully bring technology to market. Based on dozens of interviews with entrepreneurs, venture capitalists, angel investors, business leaders, academics, tech-transfer experts and policy makers, this series looks at what is working and what can be improved in the go-to-market ecosystem in the United States, Canada and Britain. We invite your feedback.

FM Series banner headART 1 300x145 Words of wisdom: Another look in the mirrorBy Francis Moran and Leo Valiquette

As we have said before, entrepreneurs must have a vision that will stretch the boundaries of what they know and challenge what they believe is attainable. They must be willing to seek the outside counsel and feedback that will reveal the weaknesses in themselves, their teams, their technology and their paths to market. It’s difficult to overcome a weakness if you haven’t recognized and acknowledged it.

We conclude our Words of Wisdom string today by looking once again at the human factor and the right stuff that individual entrepreneurs and management teams need to succeed. There is no denying that the greatness of an organization is defined by its people. But how do you ensure that you are making the right hires?

Hire good people

In his book, Making Technology Happen, Doyletech’s Denzil Doyle talks at length about proven practices and processes for getting technology to market. However, he also urges that thought be given to the people part of the equation.

Hiring people “is the mistake that virtually everyone makes (by) not taking the time to do it right,” he writes. On the other hand, “most presidents and managers make the hiring process too complex.”

In Doyle’s view, the “right hire,” in addition to obvious role-related skills and experience, has:

  • A high energy level
  • A high mental capacity
  • An abundance of common sense
  • An ability to communicate

What’s his advice to make the hiring process less painful and more streamlined? Draw up a list of the functions required for a given role. Then rate the candidate’s ability to perform each function against each of the four variables above, say, on a scale of one to 10.

“A candidate who does not rate a decent score in a very large percentage of the intersections between the job functions and the four essential ingredients is likely not the person for the job,” Doyle writes. “The same is true if scores are notably lower in one or more of the four columns even though one of them might have exceptional ratings.”

Here’s an exercise in devil’s advocacy for you: carry out this process on your existing team of company founders and executives. It might be painful, but it may reveal weaknesses that are best dealt with sooner rather than later.

How ‘round’ are you?

Andrew Fisher, executive VP at Wesley Clover, has worked with entrepreneurs of all stripes, including those who are trying to make the often-painful transition from simply developing technology to mastering the sales and marketing skills needed to commercialize it.

For him, it is a balance between basic skills, such as strong written and oral communications, and personality. He always looks for people who are well-rounded and possess those characteristics that have been collectively referred to by others, such as Daniel Goleman, as emotional intelligence. This is a measure of one’s self confidence, self-awareness and ability to navigate periods of stress and emotional turmoil, all of which has a direct bearing on one’s likelihood of achieving business success.

“You have to be a well-centred individual,” Fisher said. “If I am a highly insecure individual and I need you to stroke my ego, then that’s likely going to cause all kinds of problems downstream. I’m not saying those people don’t become successful business people … but nine times out of 10, people who are not centred in their own personality create all sorts of wasted baggage.”

This ability to communicate and present well is also important to Ronald Weissman, chair of the Software Special Industry Group at Band of Angels, when he is looking at a startup.

“In today’s climate, when companies actually try not to buy from startups, you have RISK painted on your forehead,” he said. “It’s tough to go it alone and establish credibility. A big part of my evaluation of a startup is if the management team is capable of establishing partnerships with larger companies who can achieve market penetration.”

At the coal face

It should come as no surprise that work ethic also ranked high on the list for Fisher and others.

“The harder I work, the luckier I get.” For Iain Klugman, CEO of Communitech, this marks the “let’s get it done” attitude that characterizes an entrepreneur with the right stuff. “I see a huge correlation between company’s success and how hard people work,” he said. “It’s a lot of hours for a long time, that’s the biggest determinant of success.”

Caroline Kealey, CEO of Ingenium Communications and one of our associates, has personally proven this point in spades.

Despite being a busy single mother with a full-time business, she set out to lever the insight and expertise developed over a 20-year career in strategic marketing communications into an educational resource for professional development and training. The Ingenium team, with a substantial amount of goodwill and in-kind support from friends and allies, set to work, determined to bootstrap their new venture, Results Map, without seeking a term sheet that would have diluted ownership. After six years of effort, the new venture launched last year.

“The sheer tenacity and the focus required was a major challenge since the project had to run alongside our regular work and business development,” Kealey said. “Stitching this together into something coherent with an end goal in mind was a very significant challenge.”

“Most of the development work I did on this was between 5 and 7 a.m. before I got my kids up to get ready for school; that’s obviously not everyone’s cup of tea.”

What’s your cup of tea? What kind of sacrifice and personal growth has it taken for you to get your technology to market?

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