RocketClub Is Changing the World of Startups

I have a new obsession these days. Pretty much every morning I visit Product Hunt, which offers a daily curation of new products (mostly apps).

Last Wednesday, I came across RocketClub, a web-based platform where you learn about new startups and play a key role in helping them achieve early success. In return, you can earn shares in the startups themselves. RocketClub does this by connecting startups with early adopters who in turn become part-owners through sweat equity through completion of a series of tasks such as giving periodic feedback and introducing the product to their personal network.

I joined immediately.

Startups need users who are engaged and have a vested interest in them. This is the brilliant insight that led the founders to create RocketClub. It is free to join and free to apply to work with any startup. RocketClub takes a management fee upon the sale of stock options and before the cash is distributed.

This is disruptive innovation at its finest.

I would encourage anyone who enjoys finding startups and the ideas behind them to join RocketClub and start finding new businesses to love.

Change Your Process to Find Better Candidates

The-Right-CandidateAfter reading a couple of blogs from the Harvard Business Review Blog Network–“Don’t Hire the Perfect Candidate” and “Why Employers Aren’t Filling Their Open Jobs”–it’s apparent that the recruiting process is broken…and not just for the reasons mentioned in these posts. The problem starts with our love of lists: grocery lists, to do lists, wishlists, top 10 lists, you name it. Companies and recruiters tend to believe they can apply this list mentality to finding the best people for a given role. So what do they do? They create a list of everything “the successful candidate” must have. There are two major reasons why this doesn’t work.

  1. It ends up wasting a lot of people’s time.
  2. It forces people to be lazy about assessing candidates.

Time gets wasted in numerous ways: people trying to figure out if they check enough boxes to get in the door; job seekers stretching the truth about their experience, hoping for that interview; recruiters and hiring managers discussing or interviewing candidates who don’t really meet the list criteria; and on and on. It’s a mess.

When the recruiter or hiring manager has this massive list of credentials, that’s exactly what they use to determine how viable a candidate is. It’s not efficient; it’s lazy. Worse, they are likely missing out on exceptional candidates because they don’t have the exact experience or pedigree enumerated in the job posting. Remember that the leaders of Enron and most of the recruits to the investment companies and mortgage houses that led the way to the recession also checked a lot of boxes on a lot of job posts. Look where that got them.

Just because people match the list it does not mean they will have automatic success in the role. How do they contribute to culture? How do they respond to certain situations?

Both authors of the HBR blog posts recommend a mix of investing more in recruitment and retention, reassessing the market and lowering expectations. While there may be validity to those, I would start with a much simpler premise–ditch the list. Instead, create a profile that matches the individual with the role. Doing so successfully really requires three things:

  • A brief narrative (about 100 words) about the characteristics valued in the person
  • The strategic intent of the role (no more than three bullets; more than that and you’re getting too tactical)
  • What a typical day in the life looks like

This is a challenging process, no doubt, and takes time to get it right. But the beauty of it is that it forces you to truly think about how the role contributes to the overall success of the organization and the kind of person who will be the best fit.

More qualified candidates will apply. You will review their cover letters and resumes differently. Your interviewing process will change as well. Most importantly, you will do a much better job of bringing real talent into your organization, not just a bunch of box checkers. And the organization will, in turn, be even more successful.

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Book #11 – Brother Odd

Brother OddFor my 11th book in my quest for 50 books in 2013, I went back to Dean Koontz’s Odd Thomas, selecting Brother Odd, the third in the series. I had previously read Forever Odd for my 6th selection. In all honesty, I couldn’t help myself. The book was sitting there on my nightstand, aching to be read.

As usual, Koontz marries thrills, fantasy and wit into his storytelling, making yet another fun, entertaining and difficult-to-put-down novel. Wryness permeates the entire story. For example, about three-fourths of the way through the novel, the narrator, Odd, shares his perspective on the tool of his nemesis, stating it is an apparition that is “fearsome but, in the end, less real than such threats as a man with a gun, a woman with a knife, or a U.S. senator with an idea.”

The story line itself delves into the philosophical nature of our being. Though the setting is an abbey, it is not overtly religious. Instead, it forces us to contemplate what we, too, would do if we had great power. Would we find ourselves as morally corrupt as the antagonist? Or would we seek to find a deeper connection with those less fortunate?

There are several character series out there to enjoy. I hope this is one you choose to explore.

Book #10 – ARGO

ARGOI decided to read ARGO for my 10th book in my quest for 50 books in 2013 as much to see what the fuss was about related to the movie as to learn about the rescue that I remember from my childhood. I even had a cassette recording of the news that I made myself the days the majority of the hostages were released. That cassette may actually be sitting in a storage unit.

Anyway, the story of the six houseguests that had been rescued so many days prior to those held at the embassy was a mystery to me, as it was to so many others. I have a new admiration for the CIA and Canada, particularly how an inherent mutual trust occurred, which led to the mission’s success.

One of the salient points from the book is to create a strategy that best fits the situation, instead of taking the safest, most predictable route. Another key point: paying attention to every detail associated with the strategy, including areas where there can be a Plan B and where a Plan B simply doesn’t exist. These are lessons we can apply in nearly every aspect of our lives, even if actual lives are not at stake.

Of note, I was not aware until reading the acknowledgements at the end of the book that the screenplay had been written prior to the book. I’m looking forward to seeing it on film, knowing that there will be liberties taken from the actual account.

While to book was well written, there were times where the prose felt forced, as though the CIA stepped in to the story and insisted that some aspect of the story be told in a certain way. Because of the quality of the story, this can be overlooked, and the book makes for a decent read.

Book #9 – Deep Survival

Deep SurvivalMy former CEO (who is now serving as Chairman of our board) recommended Laurence Gonzales’s Deep Survival a couple of years ago. He may have even purchased it for me. It, like so many others, has been sitting on my nightstand for far too long. This quest to read 50 books in 2013 forced me to finally read it. I wish I had picked it up sooner. There is so much to learn and understand from the stories of survival, intermingled with the psychology that makes survival possible in the first place.

I was blown away.

In short, we must first acknowledge and accept that we will all die at some point. For us to survive extreme situations, regardless of what that situation may be–being lost in the wilderness, having a broken limb while stranded on a mountain, or steering a business through a terrible economy–we must first be prepared for the worst, second have the right frame of mind to put that preparation to use and third encounter enough luck to actually make it out alive.

One of my favorite quotes from the book is one he took from the philosopher Epictetus, in which he wrote, “On occasion of every accident (event) that befalls you remember to turn to yourself and inquire what power you have for turning it to use.” In other words, take what the universe gives you and find a way to make it work for you. Own your situation and use everything you know to turn what may appear to be a death knell into your greatest triumph.

With that said, even the best prepared individuals who have the perfect mindset encounter the worst luck and fail to survive. At the same time, those unfortunate souls are the most alive because they prepared, took the chances and put themselves in the best possible position to survive. I must applaud and emulate them.

There is so much to learn from this well-written compilation of more than 35 years of research. At a minimum, read it for the stories alone. You just might get more out of it.

I recommend reading this with Malcolm Gladwell’s Blink and Mindset by Carol Dweck.

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Showing Real Gratitude

Thank you

Late last week, I read this story on FastCompany.com discussing how America’s happiest companies also tend to make the most money. Then, this morning, I read this piece, also from FastCompany.com, titled “For Happier Employees, Learn to Give More Gratitude Than ‘Thx'”. I have been working over the last several years to improve in my ability to show gratitude for my co-workers and those for whose success I am responsible. More recently, I have been putting even more effort into this, showing gratitude on a daily basis.

The equation is actually quite simple: happy employees = happy customers. Harvard Professor Francis Frei has done some remarkable research and teaching in this area, a fair bit of it documented in her book Uncommon Service, co-authored with Anne Morriss. Companies such as Zappos, Rackspace and Southwest Airlines, among others, succeed because they are able to deliver a much higher level of service than most of their competitors, doing so with much higher employee satisfaction rates.

Showing real gratitude is harder than it seems. We, as humans, leaders, managers, seemed to be programmed to seek and identify the negative. We can react to what’s wrong and fix it. Many who have a knack for problem-solving actually thrive on this. Others just don’t know any better.

Instead, we must pay much more attention to what is going on around us, with our teams and with our teams’ teams. Then, we need to identify something good that has happened–managing a situation, a demonstration of character, helping someone else improve performance–and specifically note it to the individual. Give examples whenever possible.

Your best option is to hand-write a note. It is intimate, far more meaningful and most likely to be kept if not displayed.

The point of this, though, is not to show gratitude in the hopes it will lead to greater profits. If that is your motivation, then the insincerity will shine through. For it to be meaningful, you have to actually mean it. You show the gratitude because it is deserved and helps reinforce the behaviors and activities that will make that person and your organization successful. Showing real gratitude is more about developing the individual. The rest is a nice addition.

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Book #8 – A Separate Peace

A_separate_peace

I don’t exactly remember when or where I picked up A Separate Peace by John Knowles, I just remember that I knew I had to read it, and it lands as the eigth book of my 50 in 2013. It’s been described as a masterpiece and “beautifully written.” I couldn’t agree more. The prose and narration are brilliant without being overdone. The story, though not necessarily a page-turner is tight, concise and knowingly told.

Having spent grades five through 12 in all-boys schools, I am all to familiar with the testosterone-fueled need to prove yourself; the guilt when, as a teenager you’ve done something you’re ashamed to admit but want to anyway; the made-up games; and the tortuous nicknames given to classmates.

Looking back on those years, this is a story I may have been able to tell, but I would have failed to express it as elegantly as Knowles has done.

If you love outstanding writing, or want to improve your own ability to compose a story, do yourself a favor and read this book.

Why Congress Will Continue to Fail

Capitol

Before I really get started, yes, I will be picking on the GOP a bit. There are two reasons for this. One, the examples that I am using are a proxy for a bigger problem that exists on bothe sides of the aisle, though more so with the right, because, two, their stated positions are puposely more extreme and thus get greater coverage. In other words, it is easier to speak to these examples because I specifically heard the press conference or read the stories. The GOP succeeded in getting the exposure they desired. Good for them.

Back to the real reason for this post.

The reason we elect officials to represent us is so that they can make the difficult decisions we as mostly uninformerd or underinformed citizens are not capable of making ourselves. That includes those decisions that may not align exactly (or at all) with our personal beliefs. 

Somewhere along the way, this idea of service morphed into the insatiable desire to remain in office at all costs, changing voting districts and saying whatever had to be said to beat that other person for the seat. This mindset and its pervasiveness are why Congress will continue to fail the American people. And it is manifest in how politicians seek to gain an edge through their use of statistics, stories and positioning, not caring at all whether their arguments have any basis in fact, rationality or simple logic.

Just last week, I was listening to a press conference from Sen. Lindsey Graham. He was using the media opportunity to rail against the Obama Administration;’s push for expanding gun control and the laws dealing with background checks. Sen. Graham is firmly against such an expansion. Here is his reasoning.

First, he tells the story of a woman from his home state who, in 2005, threatened to kill President George W. Bush. After a brief investigation and needed phsychological evaluations, the woman pleaded guilty by reason of insanity. She spent the next several years in and out of treatment for her paranoid schitzophrenia. Earlier this month, she was able to legally purchase a gun, walked into a school and attempted to murder several people–unsuccessfully. He expressed dismay that under the current law, this obviously sick, troubled and admittedly insane woman was able to legally purchase a gun. He said, “She should not be able to purchase a gun anywhere.”

Yet, he is firmly against expanding the background check laws as they stand. His comment, not mine.

Second, he pointed to a statistic that of the 80,000 people that failed background checks (I believe it was the prior year), only 44 had been prosecuted. He blamed this on a failure of the Administration to properly enforce the laws on the books. When pressed about how many of those 80,000 actually acquired a gun or went on to commit an actual crime, he had nothing. Let’s be clear, failing to pass a background check is not, in and of itself, a crime. As a proud former prosecutor, Sen. Graham knows this. He would have been ridden out of office for wasting taxpayer money if he had attempted to prosecute everyone who failed a background check simply because they failed.

Take it a step further: if many of these same individuals did then go on to acquire a gun illegally, how would anyone know? Until another crime was committed with that gun, and the alleged criminal caught, there is nothing to prosecute.

Is this really a failure to prosecute or a failure to have sufficient laws and safeguards in place to prevent (not deter, which is Sen. Graham’s preferred method of dealing with the problem) guns finding their way into these criminals’ hands?

His intent was clearly to use a bogus and wholly indefensible number to attack the opposition.

There is no obvious answer to the gun control debate. And I am all for reasoned debate. But when anyone is basing arguments on made up figures or self-contradicting arguments, there is no reason to be had.

Moving on to a separate example, I turn back to the end of 2012 and the Fiscal Cliff posturing. The Associated Press ran a number of stories about the standoff. Most of the ones I saw related to the strong stand and political strategy the Republicans were using in an attempt to gain leverage over the President. One such tactic stuck out as, frankly, dumb. The argument went like this: Republicans were not going to vote to increase the taxes on those making over $400,000 (as individuals, $450,000 as families), because they wanted to be able to go back to their constituencies and say that they voted against any increase in taxes.

Now comes the failure in logic. A “Yes” vote on the measure increased taxes on those whose annual incomes were $400,000 or more. A “No” vote on the measure increased taxes an just about everyone. In other words, no matter how they voted, they were increasing taxes on a group of people. The size of the group depended on whether the vote was up or down. There was no rea; option for no tax increase at all because both sides were too busy marking their territory to get anything of substance done.

In the corporate world, most members of both the House and Senate would be fired for non-performance at best and incompetence at worst. Instead, we, the electorate, continue putting people into office to “fight” the other side. Though polls show our complete disdain those we put into federal office and their complete inability to actually accomplish something, we still put them in office.

Maybe the real reason Congress will continue to fail is because we keep electing them to office and not enough of us care enough to do a damn thing about it.

Book #7 – The Conscience of a Liberal

Conscience_of_a_liberal

I received The Conscience of a Liberal as a gift from my mother a year or two back and chose it as the sixth book I’ve read in my bid for 50 books in 2013. While I don’t always agree with Paul Krugman’s views, I do appreciate the his ability to frame an argument in proper context and support it with real, verifiable data (his antagonists could learn a thing or two about using actual data and not just randomly throwing things together, but I digress).

In essence, he argues that by allowing income inequality to continue widening, we create even greater issues as a nation and our ability to survive. Though he wrote this prior to President Obama’s first election into office, issues and concerns that he surfaced related to the state of politics ring truer now than they did then. By one party taking a hardline stance for the sake of TV time and isolated votes, they ensure that the business of governing doesn’t really happen, income inequality continues to grow and, while the absolute wealthiest do prosper, the rest of the nation (the 99.5% of those that make those wealthiest wealthy in the first place) suffers.

There are compelling, though at times incomplete, arguments supporting this supposition. Even so, the message that Congress and the White House must do more to actually govern and (gasp) compromise for the good of most (if not all) is loud and clear. I’m sure I’ll have more to say about this soon.

If you are more of the Democratic or progressive set, this book will resonate. Read it with Robert Reich’s Aftershock. If you are much more conservative in your thinking, you’re likely to sweat and convulse in such a manner as to be rendered unable to complete even the first chapter.

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Book #6 – Forever Odd

Forever_odd

For my sixth book of 50 in 2013, I chose Forever Odd, the follow-up to Dean Koontz’s Odd Thomas, which I picked up a couple of years ago in the sale bin at Barnes & Noble. I loved the first installment of the series and when I had the chance to pick up the second and third (Brother Odd, which is on my list to read soon) at a book sale supporting my kids’ school, I pounced.

As a brief, non-spoiler intro, Odd is indeed his first name, which is explained in the first book. He has the ability to see dead people, though he can’t speak to them, nor are they much help in solving mysteries, unlike most other portrayals of such gifted (?) characters. Odd leads a simple life, complicated by his gift, family and friends.

He is a bit anti-hero, which makes him all that much more heroic, supported by Koontz’s keen ability to introduce chapters from what appears to be left field yet has some reasonable bearing on the story. The narration is at times heartfely, sarcastic, panicked and wry. It makes for a fun read, and I find myself rooting for Odd not so much to save the day but just not screw things up too much.

I was fortunate to start this book as I was traveling from Vail back to Phoenix, so I was nearly two-thirds of the way through by the time I got home. I just didn’t want to put it down.