I just finished watching this great video from investors discussing why their recent $53 million capital injection in Linkedin is a great move. They’re considering the $1 billion valuation cheap compared to the potential exit value of the company in the not so distant future. After sharing their excitement for a few moments I went to check up on my Linkedin account only to find the site down. Great timing!
If there’s one VC in the market who really gets it right, its John Doerr. This video speaks volumes to his understanding of the type of entrepreneurs who create long term value for the world, shareholders and themselves. Rather than focusing on short term payoffs, the right entrepreneurs for building successful companies are those who see the bigger picture with a relentless focus on offering customers a core value proposition. Doerr’s notion of a “lust for making meaning out of your work” captures the essence of entrepreneurship in my book.
This afternoon my hard drive decided it had enough. It didn’t completely die (at first), but rather suffer a massive stroke. The event was so catastrophic that a gentle grinding noise is was the only response to be found. After taking it to the experts, I’ve declared my Powerbook G4 computer officially on permanent life support dead.
For some, loosing a hard drive unexpectedly is enough to cause an actual stroke. After watching certain family members freak out about broken technology time and time again, I’ve learned to take a more relaxed approach. Rather than getting upset for no reason, I try to ask myself: what are the positive take aways and what can I learn for next time? I know that backing things up and watching for warning signs is key, but also not sweating the small stuff is important. Although I potentially lost valuable information for my startup, loosing a hard drive is a very insignificant event in the course of my life.
Learning to keep your cool in stressful situations is an important skill. Some of us are better than others, but ultimately it comes with practice. There’s no better opportunity than to practice stress than through the roller coaster ride of entrepreneurship. Starting something, companies, organizations, work out routines, etc…, requires discomfort. The more comfortable you are with discomfort and the more often you face it, the better prepared you will be when the discomfort approaches unexpectedly. I like to call it “testing yourself with the opportunity to fail”.
David Brooks wrote a great New York Times article about outsourcing your brain through technology. I’d like to take that a step further and suggest that technology, specifically web-based technology, allows people outsource their brain and discomfort. In the short run, outsourcing discomfort is helpful. It allows people to focus on day-to-day meaning, with virtual insurance covering the rest. But it’s also important not to move to far from discomfort. Although back up systems and systems of back up systems have a purpose, they too can fail at the worst possible moments. Technology is a tool, but not an absolute. Mental preparation for discomfort is just as important as physical preparedness.
Reinventing one’s self is key for continued success in all professional pursuits. The world is constantly changing and you should be too. Most people find comfort in cruising down familiar career trajectories as reinventing yourself involves risk and discomfort. However, the long-term benefits of carefully shifting personal brands far outweigh the short-term risks.
Problems manifest when tectonic plates underlying our market economy shift dramatically. Sometimes these shifts occur overnight (like the Bear Stearns fiasco), but more likely than not, they happen ever so slowly. Like a typewriter salesman at the height of IBM or an associate at Arthur Andersen before the fall of Enron, you don’t want to become that frog in a pot of soon to be boiling water.
I’ve taken a look at two types of successful change in the marketplace, one I dub “Hyper-Transitional” and the other “Complementary Reinvention”. Both have merit and plenty of role models. Here’s a brief overview:
Hyper-Transitional: The Madonna Model
There is no better example of extreme personal brand reinvention than Madonna. Madonna and her publicists have successfully managed transformation-after-transformation in an industry chalk full of one-hit wonders. Despite the associated risks with each transformation, Madonna continually reinvents her image and message, always staying one step ahead of the curve. After more than two decades, it looks like nothing can stop Madonna now except lack of change itself.
Another example of a hyper-transitioning careerist is Sean Aiken. Over the last year, Sean made a career out of changing careers. Like Madonna, Sean generated and maintained great publicity from his recent quest: 52 jobs in 52 weeks.
Complementary Reinvention: The Michael Lewis Model
Not everyone’s career is as demanding as Madonna’s. Some of us have less of a thirst or need for publicity and do not require hyper-transitional careers like Madonna or Aiken. For the best practical results, professionals should manage change with a more conservative approach. By focusing on complementary reinvention, careerists can shift goals successfully while maintaining value from prior brands and experiences.
Michael Lewis is a prime example of the benefits of complementary brand management. For those of you not familiar with his past, prior to becoming a successful author and freelance journalist, Lewis worked on Wall Street as a bond salesman for Solomon Brothers. From his time on Wall Street, Lewis crafted the brilliant book Lair’s Poker; known to pretty much everyone with an interest in investment banking. Prior to banking, Lewis worked as an art dealer in New York. Additionally, Lewis is fanatical about sports and has gained considerable knowledge from his passions.
In impressive fashion, Lewis seamlessly synthesized his core backgrounds as a sports-loving, financially minded art enthusiast to write some of the best books on business and sports. Lewis could have been successful in each of the four areas (journalism, finance, art or sports) if he had chosen to pursue one independently. However, his collective experiences have allowed him to become an exceptional professional, worthy of international acclaim. In the words of Seth Godin, Lewis has combined complementary skills to become a “best in the world” professional. Lewis’s multiple passions and masteries should be emulated by all of us seeking self-actualizing careers and fulfillment.
Global Infrastructure Partners announced the conclusion of their fund raising efforts for their first fund. The private equity firm raised $5.6 billion through May 2008. GIP invests worldwide in infrastructure assets in both OECD and select emerging market countries in energy, transport, water, and waste management sectors.
It only took $5.6 billion, but their website is finally live. Unlike many private equity firms, GIP does a nice job informing site visitors of their current investments and overall objectives.
Considering the millions of blogs on the internet, is there value in adding another voice to the crowd? The world is currently awash in content. Web 2.0 has opened the flood gates to user empowerment and content-on-content compounding. So with all the user generated flotsam filling the internet ocean, is anyone actually listening?
Over the past few years, I’ve learned to appreciate the value of having a voice on the web having seen blogging emerge as the universally accepted platform for open online communication. From an economist’s perspective, similarities can drawn between the utility of blogs and that of money. From Econ 101, most will remember that money has the following three characteristics: store of value, means of exchange and measurement of wealth. Throughout the internet, blogging exhibits these characteristics in a number of ways:
Store of Value
At their core, blogs record thoughts, opinions and facts (although it seems like few focus on the latter). By aggregating content over time, value can be created and stored. Permalinks are the best example of stored value through blogs. The value of these links grows as content-on-content compounding takes flight.
Means of Exchange
Although blogs are not physically traded for goods and services, blogging links provide a medium to exchange publicity and credibility. Specifically, many successful bloggers leverage linkbacks to provide reciprocal recognition. In exchange for posting interesting or obscure content, the best (or luckiest) bloggers can attract huge numbers of eyeballs from around the world in split seconds. Blogging also provides an efficient platform for the exchanging of thoughts. On the aggregate, this exchange grows efficient as content is easily digested and disseminated or dismissed.
Measurement of Wealth
While this last one is more of a stretch, blogs can provide a measure of psychological or intellectual wealth. Although this measurement is far from scientific, blogs provide a natural mechanism for ranking the relative value of thoughts. Of course, blogs with many subscribers have a higher perceived content value than those lacking interest. With all the metric ranking software available, it’s clear that people are interested in understanding the relative value of their content in the marketplace.
Welcome to my blog. I look forward to catching up over the next few years.
