Old People: Mean or Funny 06/30/2011
It seems to me like people who are considerably older than me almost always fall into one of two categories: being mean or being very funny. No matter what though, the key is that they can get away with anything (like kids). Why is that? By "mean," I don't mean they're always unpleasant. It's just that they're more often than not grumpy or not too sociable. Why is that? By "funny," I don't mean they're always comedic. It's just that they have stories that are genuinely humorous and observant of something common and quirky among us all. In both categories, older people can also be "weird." By that, I mean somehow exotic in their interests or behaviors and maneurisms. Maybe that's from spending a lifetime "finding themselves" and figuring out how they want to be. Or maybe not. Sometimes, older people are very wise. Wisdom is often some combination of all of the above: seriousness and a sense of humor, backed by years of stories and experiences. I'm most impressed when I meet someone who is really fully mentally present and just sharp as anyone half their age. That is truly the most remarkable and special, and I wonder why. What's their secret? How can I grow up and still be quick and "with it" (I like seeing older people with iPads and knowing more about the latest bands than I do)? Why aren't more people like that naturally? Seeing people like this always inspires me (even though it also creates quite a cognitive dissonance). Add Comment Anke and Carole spoke about entrepreneurship and their own personal stories in my class by Mayor Riordan, and it was neat to hear two different perspectives on the entrepreneurial process. Here are their quick bios: Carole Ference is Executive Vice President, Business Development of Nielsen Advertiser Solutions, Founder of IAG Research, and Former Publisher of House Beautiful, Connoisseur, and Town & Country. Anke Audenaert is a founder and head of product and research of JumpTime, a company that focuses on building traffic optimization software for digital publishers. The Culver City based company is 4 years old. Earlier, Anke worked at Yahoo!, as head of market research and network optimization. She is also an Adjunct Professor of Marketing at the UCLA Anderson School of Management and teaches web marketing and analytics in the FEMBA program. Ideation Anke started her talk by speaking about her "aha moment." She started at Unilever and then moved to Yahoo as Head of Research. Her focus was on finding ways to move homepage visitors to the most profitable parts of the site. She realized there was a need for this across companies and decided to leave but first partnered up with someone. She had the algorithms, and she partnered up with Michelle DiLorenzo for Business Development. Together they built JumpTime, a traffic optimization software company. They put a price tag on all content pieces and then build software to move traffic across them. They have 12 employees and have several large clients already. Carole originally started in magazine publishing and moved to TicketMaster here in California. She wanted to change her lifestyle, and so she networked and met people who became her partners. The business idea came from someone else: TV advertising effectiveness measurement. Her company's focus was on measuring viewers' recall and liking of ads. They wrote a small business plan and pitch and went out to GM and Kraft and got lots of feedback from them, tweaking the product until it was in a state that could work. Next Steps Some of the initial steps mentioned were writing a business plan and marketing plan. Anke also started consulting for clients and developed her model further. She analyzed data with her husband Lustig, a famous asset pricing professor, and got together with her future CTO Andres Rodriguez from Stanford Research Institute. Together they set their mission, including lofty goals for the next 5 years. She urged us to write business plans for ourselves and our business, not for getting money. Key points to focus on are goals for product, including specific milestones, and goals for sales (top 50 clients, big companies, etc.). She started a huge Excel sheet to track all this, helping her get her Series A funding. Funding Carole spoke a bit about friends and family funding for her company, IAG Research. She explained that your plan will change considerably from investor feedback. Personal Qualities of Entrepreneurs They must embrace chaos and benign neglect (letting people run with ideas), not being afraid to make mistakes. They must embrace their competition, like Yahoo switching its search engine backends. They must really articulate their product's benefits when they dealing with competitors. They must not listen to people who say something can't be done and that there are competitors. Current Landscape Both ladies said now was a good time for entrepreneurs with "money flowing." In 2010, VC rose to $22 billion, and in 2011, 76% more is expected. The hottest areas they mentioned were the following: Consumer, Mobile, Social, and Health. Various incubator programs they spoke highly of were the Start-Up America Partnership, YC, and IdeaLab. The sale starts when the customer says no 06/25/2011
I just completed my second Jeffrey Gitomer book: his Sales Bible. I can definitely see his style of numbered lists, with an extra "0.5" at the end at all times, and his intense energy and enthusiasm for sales philosophy came through strong in the audiobook. At times, the text seemed to lack structure and direction, and I felt like there was a lot of repetition. However, buried in this tome are a lot of great nuggets and sample scripts, clearly developed after a lot of field testing. It's interesting how many of the sales techniques presented link closely with the principles of psychology from some of the other books I've recently been reading. Below are my main notes and lessons from each section. Think: the sale is in your head
Customer management
Meetings and questions
Presentations
Handling objections
Persistence
Chris Lewis on Finance 06/24/2011
Chris Lewis from Riordan, Lewis, & Haden spoke to our leadership class about how he evaluates potential private equity investments. The firm operates somewhat like Berkshire and uses little leverage. They buy private companies and over the last 20 years have averaged generous returns without leverage. They started the firm to invest in VC-type opportunities (pre-revenue) but now have more of a buyout mentality but still earlier stage ($40M revenue companies). They buy these companies with the goal to build them to $200M revenue companies. Chris grew up in LA and was the national tennis champion at USC. He even played on the pro tour and was something like 60th in the world. Nice! After going to business school at USC, he worked at Bank of America in money management. Chris met Mayor Riordan who had been doing VC for 10 years and that's what led to them starting RLH. He emphasized that the most important component they look at is people. Successful businesses almost always will pivot their business, so having a long-term perspective and dedicated, flexible people is key. The top "people" qualities they look at are the following:
Sasha Strauss on Start-Up Brand Strategy 06/22/2011
I was quite impressed by a talk I recently heard by Sasha Strauss, Managing Director of Innovation Protocol, a branding agency serving a variety of companies -- from start-ups to Fortune 500. Sasha's also a USC Professor in Communications. First off, what made the talk super engaging was the intense energy and humor (often self-deprecating but always keenly observant) of the speaker. That just rocked. Secondly, the content, while not particularly new, was super distilled and weeded down the core of what matters, and it made me consider the strategy of some of the biggest brands in a new light. I would have liked to hear more examples of brand strategy at start-ups versus big companies whose brands everyone knows; that would have been a nice application of some of Sasha's frameworks. Below are my main notes and takeaways from the talk. Overall, it was a blast, and I don't even dare to do justice to the full force of the event simply in writing. Introduction
2 more quotes from Riordan 06/20/2011
"The perfect is the enemy of the good." --Voltaire "Any idiot can come up with a perfect plan for war as long as he's not actually doing it." --Churchill In one of my classes with former Mayor Riordan, he presented these two quotes to us in connection with his "axioms of leadership." Voltaire's quote is definitely at the heart of entrepreneurship: the importance of "getting on with it" and making decisions. This ties in to Riordan's "courage" axiom of leadership. Churchill's quote goes one level deeper into this in pointing out that it's much easier to be an external party considering what would be best for others to do rather than having to actually do it yourself (especially when it's something as difficult and risky as going to war -- or launching a company). That's why many people write about it instead of doing it. An interesting way to combine the two quotes is to realize that when you're making a plan for yourself, you can't aim for perfection -- goodness and timeliness matter most. Notes on Think Twice by Michael Mauboussin 06/16/2011
I recently enjoyed reading Think Twice: Harnessing the Power of Counterintuition by Michael Mauboussin. It made for a nice counterbalance to Michael Gladwell's Blink, which I had read previously and which makes some fairly different arguments on the power of intuition. The biggest lesson is that both have their place, and wisdom comes into play in distinguishing which is relevant when. The book's introduction mentions some famous examples of really smart people getting duped by relying on their intuition. Stephen Greenspan wrote an entire book on gullibility; Alan Greenspan lost money in Madoff's scheme; the LTCM geniuses "failed;" the Columbia disaster occurred despite early warnings; the banks in Iceland collapsed. Smart people can make really big mistakes! The author's three step approach to deal with this is as follows:
The author also outlines three major areas of mistakes:
Ch. 1: The Outside View
Marty Albertson of Guitar Center 06/14/2011
One of the most fun speakers we had in Riordan's Leadership class was Marty Albertson, the former CEO of Guitar Center. His talk focused on the use of creativity in leadership (creativity being the parallel to music). He started his career as a record producer and studio engineer in the Haight-Ashbury district of SF. He thought he could be creative in art but actually found he was most creative in managing people. He has a passion for collecting famous guitars, and in class, he showed us Eric Clapton's Blackie guitar (above) worth $2 million. He turned this passion of his into a business opportunity for Guitar Center, which at his suggestion created 25 knockoffs of the guitar and sold each for $50,000. They sold all 25 knockoffs in 10 minutes. (They got Clapton's permission beforehand and gave some of the proceeds to his favorite charity.) This was an example of creativity in marketing. Some of his modus operandi:
He went through 5 sales of the company, bought out 3 partners, experienced 2 LBOs, went public, went private, and now considering going public again. Wow! After they bought out the first founder's widow, they levered the business too much (frothy times), and JPMorgan Private Equity became the owner. He realized that they were smart people but never ran anything, and most seemed too analytical and unable to make decisions without backup analysis. Now, the current PE owner is Bain Capital (since they went private). He believed that really big decisions must be made with the gut. He thinks testing and analysis has its use but most of the time is inconclusive. For each issue, he decides, "is it a 1 or a 10 in importance?" Then, even if he's passionate about one way or the other, he can decide if it's worth the time and energy to fight about it. Keys to customer service: low turnover of staff (went from 100% to 50% turnover on the sales floor) and keeping policies as simple as you can. They now have 40% market share and consider their culture the key to their success. He closed by posing an interesting problem of negotiation to the class: a customer offering to sell their vintage guitar at way below market to them. For used/vintage guitars, the only difference in valuation is due to age (like a step function). After the class struggled to come up with a good answer, he explained that their philosophy is to earn people's trust and tell the truth, paying the customer way more than they initially asked for. That sort of philosophy definitely left an impression on me. Notes on Click by Ori and Rom Brafman 06/12/2011
A book I recently finished reading (which was similar in many ways to the HR course I was taking at the time) is Click: The Magic of Instant Connections by Ori and Rom Brafman. I really enjoyed the stories that were at the center of each chapter, and I learned a lot of non-intuitive things about how to create environments that allow people to click and form closer connections. Below are my biggest takeaways from each chapter. Ch. 1: Finding Magic
That one simple phrase has been one of my personal philosophies and drivers for achievement since I was young. When facing difficulty, I find it useful to remember that any worthwhile task -- love, a business opportunity, writing meaningful software -- is difficult and complex. That's how the real world is, and the things worth working for are hard to solve and demand perseverance. I recently heard a colleague say, "If we're not having problems, that's a problem." I totally agree. | About Max Mednik
Max is an avid entrepreneur and student of life. He is a graduate of Stanford and founder of Ridacto and AMA Capital. He is a member of the business school class of 2012 at UCLA Anderson. He lives in Los Angeles with his family and spends his free time enjoying his many hobbies and interests. ArchivesJanuary 2012 CategoriesAll SubscribeConnectFollow Me on TwitterShazam Tags |











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