Category Archives: Organization Culture

Blitzscaling 16: Reed Hastings on Building a Streaming Empire

This is my 13th  blog on the notes and my interpretations on the Blitzscaling sessions. In the fall of 2015, Reid Hoffman began taking session called Technology-Enabled Blitzscaling at Stanford University.Blitzscaling is what you do when you need to grow really, really quickly. It’s the science and art of rapidly building out a company to serve a large and usually global market, with the goal of becoming the first mover at scale. And its also about why organization culture is important for Blitzscaling. Because when you’re growing an organization very fast, you have to make people accountable to each other on a horizontal or peer-to-peer basis, and not just vertically and top-down through the hierarchy.

The previous blog related to Blitzscaling is here.

In this session, Reed Hoffman interviewing Reed Hastings, the Co-Founder and CEO of Netflix. And the most sought-after mentor of silicon valley shares his mantras of building the culture and scaling the company.

  1. Netflix culture deck is the most evolved culture decks out their. And here are the details of the deck for you :

  2. Putting your culture in writing not only helps you to get right kind of people in your team, it also makes the entire thing more debatable to get more understanding. At Netflix, every new employee goes through the deck to understand about the company.
  3. With the right kind of density of people in the company, you need less processes to manage them. More the people, more processes are required. Reed call this as “Right Talent Density”.
  4. Your manager should always be giving the context of why they are doing what they are doing. And then just give them autonomy to people to execute freely.
  5. Reed highlighted that NefFlix company culture is different from Google. And he emphasised that one company culture is different from another. Organization culture is an expression of what you and your senior leadership want to be. Thought I believe that while it’s important to define that expression of what you want to be, it is also very important that it should be aligned with what your customer wants from you as an organization.
  6. You can only have a strong culture in your company if you can have a strong & clear mission. The funny thing about mission statements/plan is that “it doesn’t wort rk out most of the time”. But one thing it for-sure helps in to help the current and prospective employees and customers see what company want to achieve in next 5 to 10 years.
  7. When attacked by the big competition, focus on your core rather than expanding the offering; because it will further lead to more fronts to fight the battle.
  8. Being too intellectual to your customer on why you are offering what you are offering doesn’t work, as customer care doesn’t care about that. Your customer care about value, price and service.
  9. “The only prediction about the future that comes out to be true is that prediction itself will be wrong”. When Netflix was seeking funding in 1997,  they thought that online video streaming will pick up in next 5 years by 2002. By the time 2002 came, internet bandwidth was still at the nascent stage. So they thought & projected that by 2007, online streaming will be contributing 50% to their business. But it was still ZERO after 2007.
  10. The right time to become an entrepreneur is when you got the idea that to make it work you are ready to go and touch the poverty line. Or other way around is when you can’t get that idea out of your head for next 1 to 2 years.
  11. You can’t let friendship come in the way of professional or business judgements. So when you are hiring your friends or friends of friends, just make sure of this thing.
  12. Use more data when you are picking stocks, but less data when you are picking your spouse or new hire.
  13. As a CEO, you have to invest in yourself on the continuous basis. Because when you become better, your company become better. As you grow your company, you focus on creating the culture, mission/vision, hiring right guys so that they can hire right guys further. To make this all happen, you need to improve every single day.
  14. There is no right answer whether you can become an entrepreneur or not. From Reed perspective, if you have got a strong grit and if you are a generalist who can do multiple things(most of it will be very boring) for many years to come, you can try your luck.
  15. The biggest mistake you can do in your life or as a founder is try and to be someone else. So all Steve Jobs lovers, it fine to read about him and get inspired, but dont want to be one.
  16. Successful teams and employees act like a sportsman/women. Treating your employees like family means you probably need favour’s from them or want them to work for you cheap.

Book Review: ‘Sell’ By Subroto Bagchi

“To sell is human”. But I used to hate sales and sales guys; because their commitments to customers have caused me and my team spend days and nights in the office working like crazy. Now learning and doing sales myself, I understand the importance of this profession and what it is NOT about.And what sales guys in my previous organizations were missing in their approach. And what we need to improve as a team on the sales front at qilo.

Copywriters Hachette, India
Copywriters Hachette, India

Read this book, if you are able to correlate with my challenges.

Who should read this book: The book will help people who want to improve their understanding of the B2B sales, specifically about technology B2B sales. This book will be more beneficial if you have been involved in sales function from few months, but looking for understanding it more from the perspective of

  • How to improve your prospecting, funnel management and sales process,
  • Importance of consultative approach in B2B sales,
  • EQ management in sales,
  • Impact of your company culture on your sales.

This book is not for: This book is not for people who are specifically looking for a manual or how-to guide on understanding and improving your sales process. But then you only need nuggets from the master like Subroto to tell you what is going wrong in your sales process or what you are missing in your approach.

My learning from this book:-

  • Best sales people never give-up on follow-up’s & having conversations. And in you are an introvert like me and lacks the ability to have conversations, you will have a tough time initially in the sales job. Read a-lot on different topics, about your prospect and what’s happening in the world in general. And slowly you may learn the art of sales.
  • Don’t take rejections at heart. You will get plenty of that in your sales life.
  • Your funnel size decides your conversion rates.
  • As a salesperson, you need to be good at understanding people and what makes them successful.
  • The best line of the book is “The prospecting process has changed. Your future customers are already doing prospecting about you and your company“. Read the book to understand this in detail.
  • There is a thin line between selling and helping the customer find a solution. The minute you sell, your prospect goes to the shell of not sharing their problems and challenges. People like to buy the things rather than being sold the things.
  • Be yourself and don’t take yourself too seriously. Customers want to buy from people who are genuine and comfortable being themselves.
  • The best read is when Subroto shares story “The Naked Burger” when he attended the Apple sales conference. I will buy this book again just to read this chapter.
  • Never ever lose hope while making a deal. But you should have a strong belief in your product and its value, if you don’t have, don’t sell it.
  • We may be living in a digital world with bots and AI, but people still buy from people. Simply quoting data and facts will not appeal to your customer. Humans are beings. Connect to a being to allow your customer to open up. Best line “Authenticity is in short; hence in demand”.
  • Another gem in this book is this chapter “DO IT LIKE SWEDES”. It talks about how progressive companies around the world are embracing the different set of behaviours to influence their organizational culture. Customers want to buy products & services with a certain culture at its core.
  • To build a successful profitable organization, it’s not enough to win few wars (customers). You have to do it for many years to come without excreting yourself. A successful salesperson learns to be effortless by planning well, choosing their turf wisely and prepare themselves to play a long game.

There are only few books on B2B technology sales. And specifically from those who have done sales, and that too large deal sales. It’s definitely worth a read without much heavy weight jargon.

Blitzscaling 15: Diane Greene of VMware on Scaling Product & Culture

This is my 12th  blog on the notes and my interpretations on the Blitzscaling sessions. In the fall of 2015, Reid Hoffman began taking session called Technology-Enabled Blitzscaling at Stanford University.Blitzscaling is what you do when you need to grow really, really quickly. It’s the science and art of rapidly building out a company to serve a large and usually global market, with the goal of becoming the first mover at scale. And its also about why organization culture is important for Blitzscaling. Because when you’re growing an organization very fast, you have to make people accountable to each other on a horizontal or peer-to-peer basis, and not just vertically and top-down through the hierarchy.

The previous blog related to Blitzscaling is here.

Diane Greene was a founder and the CEO of VMware from 1998 until 2008. Currently is senior vice president for Google’s cloud businesses. VMWare was the pioneer and the first successful company to provide software that can enhance the utilization of computer resources, called Virtualization.

  1. Organization culture is important when you scale your organization. And people whom you hire should be aligned with the organization culture.
  2. Help your people to leave if they are not culturally fit for your company. One way to check that is giving them the opportunity to be part of critical conversations early on and see if they are able to match with energies of people
  3. Hire ex-military people if you like them, as they are far more disciplined in their approach towards work
  4. How to bring discipline and reduce chaos in teams: Ask each team members of yours to share what’s going on in their teams by Sunday night. And as a manager, highlight what is important, collate all the notes and share it with everyone in the team.
  5. You can share the same notes with new hires so that they come to know what kind of things are going on in the team.
  6.  It is founder and leadership responsibility to put up a plan on how the team and individuals in the company should communicate with each other.
  7. When establishing your partner network, the strategy is NOT to give special preference to any one of them.
  8. If your salespeople are not giving results, its either you have a bad product market fit or your salespeople are NOT able to perform or messaging is NOT right.
  9. If you have a complex technical product to sell, put a team of 3 people in sales chasing same numbers. These 3 guys will be:
    1.  A guy, who is trying to sell product on phone
    2. A guy who is going & meeting clients and explaining things to customers from technical perspective(also called as solution’s guy)
    3.  And the third guy, who will be closing the deal. All these 3 guys should be chasing the same numbers.
  10. Establishing a partner network will act as your another direct sales channel, but make sure you have a win-win model with them. At VMWare, channel sales partners which are hardware vendors like HP & Bell, every VMware solution they sold, it leads to more hardware sales for extra storage and extra servers.
  11. To create a high-performance culture, hire people who are self-driven at all the levels in all the roles. Self-driven people who set high-expectations from themselves have high expectations from their team too.
  12. Appreciate the behaviors showcased by employees which as a founder you want them to display
  13. An advantage of under promise and overdeliver is not just it gives customers WOW, but also you decide your own pace.
  14. Best advice: “As CEO’s you never overcommunicate”

Power of intent

Intent

Dreams, Vision, Strategy and Plans, all fail…. if you do not have the right intent!

An intent is the most powerful thing in the universe. Before anything comes your intent. You need to be honest and genuine in declaring your intent and the universe will work towards it to make it happen.

While we all agree to the power of intent, the paradox is we do not follow the same, when we run our organizations.

Leaders have to announce their intent and ensure to make it loud. Once you do that, magic will happen – your teams will be connected with you. They will work collectively and purposefully in making your intent happen!

Leaders normally focus more on achievements, not on their intent – why are they doing what they are doing and most importantly, what is the intent?

Yesterday I was having a discussion with a CEO and his intent was to make substantial revenues to fund his social venture. And my question to him was has he announced this intent with the team? And the answer was no.

Intent sometimes gets mislead by vision, goals. Actually, it’s the statement you make to the universe at a consciousness level and if you are genuine and honest you will for sure unlock the power of the universe.

Sometimes our reasonable self-becomes our dominant personality. And we start putting logics, connecting the dots and overthinking. Actually, all we need to do is answer a simple question, what’s your intent?

Intent comes from your consciousness not from your brain and at that level you are the clearest and transparent.

With intent comes the purpose, which binds everyone together and everyone starts exhibiting ownership and accountability behaviours.

So, announce your intent to your team next when you speak and see the magic unfolds.

 

It’s Beyond Hari Saadoo

Who can forget Hari Saado of Naukri.com, it creatively stamped that people, don’t leave organisations, they leave their manager.

Leading research by Gallup. In one study of 7,272 U.S. adults, it found that 50 percent of employees left their job “to get away from their manager to improve their overall life at some point in their career.”

But there is another important dimension to this relationship, which is organisation performance. An individual’s performance has a high correlation with the relationship with one’s manager. Stronger the relationships, higher are the chances of achievement.

qilo’s research on work place culture nails leadership as the most critical dimension for a performance based work culture

Relationship with the manager is not of a buddy but of a coach or a leader. Empathy, Clarity of strategy, Communication, Teams Wellbeing, Technical skills, Acknowledgement, Trust and constructive feedback are some of the critical competencies required in a manager. And they form building blocks of the relationship

If these are lacking between manager and team members, your organisation is bound to be on a downhill.

Create a managerial effectiveness score – which is a factor of the leadership competencies, from the lenses of the team members. And this should be one of the Lead indicators for your business.

Low managerial effectiveness score leads to delayed performance achievement or low performance, conflicts, lack of creativity, accountability and most important low participation and belongingness.

For the leaders, it becomes imperative to gauge the depth of the iceberg. And incorporate this indicator in the business dashboards.

 

So next time, when you are doing business review ask for managers effectiveness score also.

Blitzscaling 13: Shishir Mehrotra on Scaling YouTube and The 10 Things That Matter

This is my eleventh blog on the notes and my interpretations on the Blitzscaling sessions. In the fall of 2015, Reid Hoffman began taking session called Technology-Enabled Blitzscaling at Stanford University.Blitzscaling is what you do when you need to grow really, really quickly. It’s the science and art of rapidly building out a company to serve a large and usually global market, with the goal of becoming the first mover at scale. And its also about why organization culture is important for Blitzscaling Because when you’re growing an organization very fast, you have to make people accountable to each other on a horizontal or peer-to-peer basis, and not just vertically and top-down through the hierarchy.

Session 2 notes can be found here. Session 3 notes can be found here. Session 4 notes can be found here.Session 5 notes can be found here.Session 6 I haven’t covered. Session 7 notes can be found here. Session 8 notes can be found here. Session 9 notes can be found here. Session 10 notes here.  Session 11 notes here. Session 12 notes are here

In session 13,  Shishir Mehrotra, who helped guide YouTube through hyper growth shared 10 things that matter when you scale your early stage organization.

10things that matter

  1. Tailwind is an aviation industry term which means wind pushing the aircraft from its back; resulting in the higher speed of aircraft; opposite of tailwind is “headwind”, which means air is pushing the aircraft from its front, resulting in the slower speed. When applying this term to start-up world; “tailwind” means your start-up is or will be riding an existing wave of change, for example:-early stage businesses working in renewable energy which we taking advantage of society becoming sensitive about the environment.  “Highwind” means your start-up is or will be moving against a reluctance towards a change. for example:- Cloud based businesses 10 years ago was struggling to prove their point to CIO’s that cloud based hosting is way cheaper that on-premise server hosting. Success doesn’t matter whether your early stage business is tailwind or headwind. But being in tailwind, you can avoid many mistakes which headwind start-up businesses has done in past.
  2.  Purpose is one of the core dimensions that motivates people to do what they do. Mastery and autonomy are the other two dimensions. Purpose means connect what you do and why you do it. If you don’t communicate about your purpose, people will keep doing the transactions, which will never lead to WOW for your customers.
  3. Thesis matters means you have to focus on core & simple insights of your domain. Discovering those simple insights is going to take hell lot of time.
  4. Deciding which metrics to measure is very important. At Coca-Cola rather than measuring their market share vs Pepsi, someone at Coca-Cola suggested measuring Coca-Cola share in customer’s stomach. That measure resulted in Coca-Cola investing in packaged food products & drinking water. At YouTube, Shishir and team shifted measuring “Watch time Of YouTube” vs  “Watch time Of Television”. The previous metric that was measured at YouTube was the number of video’s uploaded to ad revenue to the quantity of ad’s coming to office. YouTube set a goal to increase its watch time from 100 million to 1 billion hours of watch time for Television. So setting the right type of metric to measure helps you to accelerate growth in the right direction. Pro tip: Use OKR to measure the progress on your business metrics
  5. Its often hard to make decisions in your business when you don’t have enough data. So you need more and more data to simplify your decision-making. The best decisions are those which simplify your life in making next 10 decisions.
  6.  Every business is a part of eco-system doesn’t matter how big you are. And there are set of people in that ecosystem on you have relied on to make you grow. And it’s very easy to presume their incentives if you don’t ask.Don’t presume things, collect data and/or ask hard questions, you might get more insights on this. For YouTube, their ecosystem is content producers. And YouTube worked hard to come up with the model on how to incentives the content producers.
  7. Value Matters as you grow. Think about your values well in advance before you become big enough that you can’t work on those & you can’t explain them or inculcate them in your employees.
  8. Talent matters alot for growing your organization. Divide your entire landscape of talent into 4 level as follows and compare them on their performance to decide who to take forward and whom to work with and who should be those who get out of the system.

Level 1) Executors: People who do day to day execution

Level 2) How to execute: People who give instruction on how to execute the things

Level 3) Solution to work on: These are the people who identify the solution to problems                       and priorities to execute

Level  4) Which Problems to solve:  These are the people who figure out which problems to solve

When you are starting a company having a small team, people do everything. And if you got a people, specially co-founders who cannot think at all the level, it’s not good. But as you grow, you need people specific for each level. Where companies go wrong is when they compare the performance of people at level 1 with level 2, this means you lack transparency in your organization about the roles. Define proper roles and measure the performance of people among same roles.

9) Your roles matters in an organization and if that role is impacting the work of many people in the organization, you better avoid micromanage your people, or become a dictator or become a one who over empathizes.

10) When you are setting up your goal’s & objectives, your team members should have exposure to the bigger picture. You as CEO have to align every individual with the higher purpose of the organization. This will result in high level of commitment within your organization.