Keenan 411

At the Lake

BigE and I are at the lake with the kids this week. It’s about two hours southeast of St Louis in the small town of Elkville, Illinois. Elkville is about 20 miles from Carbondale, Il, home of Southern Illinois University.

We’ve been coming here for about 7 years now. It’s a blast. My family has owned a farm in this area for over 90 years.

We are here until Wed. There is no Internet and no 3G so I’m not sure how many chances I’ll get to post. I suspect most will be from the phone.

If your interested in our vacation on the farm and the lake, I’ll be posting via @foursquare, tumblr, and here.

I’m excited, it will be nice to do nothing for a few days.

It’s the Connections

In sales, knowledge is important, knowledge of the products, the customer, the industry and more.

The relationships are important too. The trust we build, the breadth and depth of those we know in the organization, and the partnerships we create help us sell.

Together they are powerful. Without them sales won’t happen. Most sales people get this. They work hard to have the knowledge and build the relationships.

The real action however, is in the connections. The connections between the information and the relationships. It’s the connections between the data and the requests. The connections are where the sale happens.

Everyone has access to the same data. Everyone as access to the same people. It’s the connections that represent a sales persons value. Each sales person draws their own conclusions, creating their own connections between the data and the relationship.

Get good at creating powerful connections, it’s what your customers are looking for.

It’s the Connections

In sales, knowledge is important, knowledge of the products, the customer, the industry and more.

The relationships are important too. The trust we build, the breadth and depth of those we know in the organization, and the partnerships we create help us sell.

Together they are powerful. Without them sales won’t happen. Most sales people get this. They work hard to have the knowledge and build the relationships.

The real action however, is in the connections. The connections between the information and the relationships. It’s the connections between the data and the requests. The connections are where the sale happens.

Everyone has access to the same data. Everyone as access to the same people. It’s the connections that represent a sales persons value. Each sales person draws their own conclusions, creating their own connections between the data and the relationship.

Get good at creating powerful connections, it’s what your customers are looking for.

Saying I Can’t is Easy

Saying I can’t is easy. It absolves us of ownership. When we say we can’t it allows us to avoid the effort. It let’s us stop. Saying we can’t allows us to avoid failure. It’s easy to say I can’t.

The problem is, can’t is almost always code for . . . I don’t know how.

Saying I don’t know how is more difficult. Saying I don’t know how makes the effort ours to fix. It puts the onus on us. It forces us to do something about it. It makes the problem our responsibility. It’s an indictment on our capabilities. It’s admitting a weakness.

Because we don’t like to admit we are incapable of doing things we say we can’t. Saying we can’t let’s us off the hook.

We can’t get to quota, because it’s too high. We can’t beat the competition, because we don’t have that feature. We can’t get to the executives, because we don’t have the right title. We can’t lose weight because we’ve tried everything. We can’t travel to Europe, because we don’t make enough money.

Saying I can’t stops the discussion. Saying I can’t allows us to walk away and feel OK about it.

Saying I don’t know how changes everything. When we say I don’t know how we have to go figure it out. I don’t know how to beat the competition, without that feature. I don’t know how to make this high quota. I don’t know how to get to the executives with my title. I don’t know how to lose anymore weight. I don’t know how to travel to Europe on my salary.

Saying I don’t know how hurts, but at least once you start saying it, you’ll know what to do.

Equity: Slicing up the Pie

The other day a friend of mine and I were talking about start-ups. Part of the discussion was how the founders split up equity in the very beginning. Having started two companies, I’ve made a few mistakes in this area. So, I thought I’d share. It’s not as simple as it seems and can cause serious pain down the road if it’s not handled right in the beginning.

I think there are 3 elements to consider when dividing up equity between the founders; investment, the idea, and commitment.

Investment is easy and many entrepreneurs stop there. They divide up the company by the amount each person put in. Let’s say you put in 70k and your partner puts in 30k, then you would split the business 70/30. This sounds good but there is more to it.

Imagine if you’re partner was the one with the idea and he called you to help bring it to reality. The idea is worth something. I’ve always believed that. It’s the IP. I think the idea, the IP, is worth at least 10-15% in the beginning. Overtime, things will change, it will morph and you may end up doing something entirely different, but the original idea is what started the whole thing. It has value and should be part of the formula. So now the equity ration should be more like 55/45.

This is the moment most founders settle on equity and start their glorious road to taking over the world. The problem is their is one more critical element; commitment.

Commitment is hard to measure and very hard to determine up front. Imagine if you’re partner was ready to quit his job and make this a fulltime gig. He was making trips to see potential customers 2 times a week. He was calling VC’s everyday and he was coding 14 hours a day. This was his full time job. You on the other hand were keeping your day job until the gig had more traction. You were working hard, but doing it at night and on weekends. You weren’t available for most of the customer meetings and were difficult to schedule for VC meetings. You needed more time to get your tasks completed and develop code, because you had other commitments beyond the new business. The commitment level is NOT equal in this scenario and if not addressed up front will create big problems down the road.

There is no formula for commitment. It’s difficult to say; I’m quitting my job to make this happen and you’re not so I get 20% extra equity. However, the conversation around commitment has to be had. Commitment up front has value. It needs to be considered. In the scenario above, I would say it’s worth at least another 10-15% . Now the equity ratio is 30/70.

30/70 is a big shift from the 70/30 that most founders and entrepreneurs would have started from. But it’s more equitable.

No matter what you settle on, both sides HAVE to feel it is fair; fair based on dollars invested, the IP (who had the idea) and the commitment level. Not taking all this into consideration can cause big problems down the road and take the focus away from what is most important . . . getting the business off the ground.

The “Ators” of Sales

There are two types of “ators” in sales; manipulators and facilitators.

Manipulators manipulate the information, the people, the process, and the environment to make things work for their benefit of themselves. They work the sale for their own benefit.

Facilitators facilitate the use of information, the people, the environment, and the process to make things work for the benefit of the customer. They work the sale for the customer.

Both can drive revenue, but only one is selling.

The Sky Stories of Seat 10D

So I’ve decided to do a little experiment. I’ve left this notebook in the seat pocket of seat 10D on United Airlines.

What’s written in it? Not much right now. Just a request from me that it not be returned until all the pages have been filled, filled with the thougts, ideas, doodles, complaints, praises, and stories of the people who came after me.

I’ve always wondered about the person who sat in the seat before me, or who sat in it after me. I’ve always wondered when planes fly above who is on that plane, where are they going? Why are they traveling? Are they alone and far from home or getting back from a long business trip.

We all travel for our own reasons; weddings, vacations, death in the family, work, to visit old friends, and more. I want to know about the people that have come behind me and I thought this was the best way to try and find out.

The first entry is mine. In it I share why I’m doing this. I ask the book not be returned, but ask the people who find it to share their sky story and then put it back for the next person. I doodled in it and the guy next to me, Venky, from Singapore also added an entry. I left all my info, my home address, this blogs address, my Twitter handle, my Facebook page and my email address.

I’m hoping that along the way some of the people who find the book and add their sky story send me an email and let me know. If they do, I will post about it here.

Not sure where this experiment is going to go, but I’m looking forward to finding out.

If you sit in seat 10D look in the seat pocket. If you see the book read it and write something in it. It’s yours for the trip, so enjoy. Just makes sure you put it back. When the flight is over, it will belong to the next person who sits in seat 10D.

Stay tuned, as I hear some sky stories, so will you.

Extreme Uncertainty

“Conditions of Extreme Uncertainty” The Founders | TechStars Boulder | Episode 9 from TechStars on Vimeo.

Extreme uncertainty is exactly what makes start-ups hard and fun and exciting.

We live in a world that craves predictability, we want and need to know what is coming next. No matter what it is, we want it to be predictable; earthquakes, Wall Street, the weather, whatever.

Maybe that’s why few people have what it takes to start a company.

We’ve been programed to demand certainty and predictability. The problem is nothing is predictable, it’s all a mirage. Wall Street crashes unexpectedly, earthquakes happen when we least expect them, the weather is rarely what we want it to be.

It makes me wonder what more could we accomplish if we weren’t so dependent on predictability and certainty.

I guess we could start by asking entrepreneurs.

———————

This is a good Techstars video about the challenge of “extreme uncertainty” and how this years start-ups are addressing it. I have a “cameo” in the video. Autographs provided upon request. ;)

Race in America; Enough Already!!!

I’m black, if you haven’t figured it out.   I consider myself black because that’s how I’m perceived.  I’m technically half, as my mom is white and my dad black.  However, my experiences have dictated my association with being black.  I’ve been called nigger.  I’ve been followed in stores, for fear I may clip something from the shelves.  I’ve had girl friends whose fathers ban their daughters from dating me.  I am seen as black and therefore am treated as such.

I give you this brief background as context because I’m about to go off and you deserve the context.

I’m am so tired of the race debate in this country.  Race discussions and relations have been held hostage by the fringe.  I’m over it.

Many blacks in this country are still bitter.  We are still not taking care of our own shit.  The Shirley Sherrod comments at an NAACP function are a perfect example.   If we had our shit together and acted as we expect whites to act she would have been smacked off the stage.    Yes, I get it.   There are still ton’s of racist people out there, but that is NO excuse for allowing it in our own ranks. Being the victim of oppression or racism does not give anyone a license to reciprocate.   It’s time to stop pointing fingers, blaming 250 years of institutional racism for our plight and our own individual challenges.  We have a black president, black CEOs, black Congressman, black business owners.  In my opinion, the US has spoken, institutional racism has been eradicated.

NAACP, your time is up.  The enemy is no longer “the system.”  It’s time to change your charter or shut down.

Jesse Jackson, Dan Gilbert was not being racist in expressing his feelings towards LeBron’s defection.  Jesse you were, by assuming his comments were racially motivated on the sole data point that LeBron is a brother.  Jesse, when the enemy was “the man,” when systematic racism was embedded in the fabric of this country, you were a leader, a deliverer of sorts and you did your job well.    You pulled away “the mans” grip on the system and set the path for a black President, black CEO’s like Richard Parsons Ursula Burns and Kenneth Chenault and for that I thank you and we area all indebted to you.   But, it is now time stop.  Your approach is outdated.  It is ineffective and misaligned.  It could be argued, your outdated approaches are setting us back as they continue to operate from the fact the system is racist.  This assumption is offensive to the millions of white Americans who aren’t racist, those who support diversity and have been part of the solution for years.   Enough Jessee, the NAACP, and my fellow brothers and sisters who are still angry and are fighting yesterdays fight.

It’s time for us to stop looking outward and expecting the world to change for us.  It’s time to stop blaming history, the system, the man, and everyone else.   We were dealt a shitty hand.  Efforts have been made to correct it.  No matter how clumsy, or ill-conceived, changes have come and today’s environment affords us anything we WANT to commit to getting.  Our focus should no longer be getting more, it should be taking advantage of what is afforded us today.   Our new fight should focus on increasing black graduation rates, reducing our percentage of poverty, increasing black voter turnout, reducing the number of unwed mothers, increasing college attendance, increasing the number of black owned business, etc.   The environment is different now, it’s time to take advantage of it.  Jesse, NAACP, Shirley, Al Sharpton, and all the old school brothers and sisters who are still railing against the man; thanks for what you’ve done but it’s time to let go.  You’re only hurting us now.

I am also over race relations in this country because of the dismissive nature of so many non-black people/white people.   If another person on Twitter tries to defend the Tea Party I’m going to puke.  The tacit acceptance of racial slurs, signs and more is inexcusable and is not justified by saying the NAACP is doing it too.

We’ve made progress as a country.   A racist system has been, for the most part, destroyed.  I thank all the white people who participated along side of Jesse and others; LBJ, John Brown, John F Kennedy,  Andrew Goodman, Michael Schwerner and more.   We owe you a debt of gratitude too.  Despite these efforst, your work isn’t done.  You can’t wash your hands of it all.  Racism still exists, today it is subliminal, individual and tacit approval racism and whites in this country are not doing enough to eradicate that.

A friend told me the story the other day of how a childhood friend told him how they used to go “fag rolling.”  My friend, who is white, didn’t know what that meant.  So he asked.  The answer was; fag rolling is when you go out looking for gays, find one and lure him into the car.  When he get’s in, you kick the shit out of him and then while the car is still rolling you toss him out the door.   After describing the antics of “fag rolling,” the childhood friend raised his hand for a high-five.  I asked my friend, who was, as clearly disgusted as I was upon hearing the story, what he said to this guy.   The answer was nothing.  He sat in disbelief, but did and said nothing.

Many of my white friends still refer to their landscapers or housecleaners as their Mexican or Black housecleaner.  Not that race or country of origin has any bearing on the story.   To illustrate the point, I was at a party a few years ago when one of my white friends was describing how the Mexican landscaping company he used, screwed up his backyard.  He went on and on continually inserting the Mexican identifier.   I questioned him on why the fact they were Mexican mattered and why it had any bearing the story, as I felt it was racist to do so.  He quickly labeled me too sensitive and said their goes Jim again.  I’m known for calling people out on their shit.  Besides, he said; They WERE Mexican.

As dinner progressed, others shared their home contractor failures, some using the racial profile of the offenders and others choosing not to.  Figuring this was fair game, I shared mine.  It went like this:
“I hired this white guy to redo my stairs and he completely fucked it up, and that was only two weeks after these two white guys screwed up the tile job in my foyer.”  You can imagine the looks and response I got.   My point however, was made.

There are still racist people in America.  Blacks and non-whites still have it difficult to in comparison to whites.   White people in this country have and continue to benefit from 250 plus years of a system set up to their benefit.  To suggest otherwise is disingenuous.

Blacks have to stop railing against the system and blaming whites for their problems.  Whites have to get their head out of the sand.  Tremendous damage was done to the black community over 250 plus years.  All that damage was not eradicated by the civil right act of 1964.  We are barely a generation through that.   The system has been addressed but, the individuals need to get on board.

White people, you need to stop expecting blacks to just get over it.  You need to stop defending organizations and people who tacitly support or embrace racial language and actions.   White people you need to become completely intolerant to  those who display racist, homophobic, sexist, language.  You need to stop pretending that because the system has been rid of racist underpinnings you have now done  your job and you can wash your hands of it all.  It doesn’t work like that.  Stop inviting that neighbor who always has the black and jew jokes to the yearly party and tell him, to his face, you don’t want that trash in your house.   Tell the old friend who brags about fag rolling to get the fuck out of your face and that you don’t ever want to see him again.   Stop describing your house keeper, your manicurist, your lanscapers by there ethnic background.  IT’S IRRELEVANT.  It has no bearing on the story.  Be intollorent, not to the slow pace of blacks to grab hold of the progress made so far, but of the white people around you who still haven’t made progress.

White america, you have just as much ownership in the bullshit racist climate that still exists in this country today as blacks.   Stop pretending you don’t.  Stop acting as if it’s all better and that you’ve done your job.  Stop pointing the fingers at the brothers.  Yes, we’ve got our own crap to clean up, but so do you.

I’m tired of today’s race discussions.  They are rarely discussions, but rather blame games and grandiose efforts to one up each other trying to prove who is more engaged in racist actions.

The fringe is holding race hostage in this country and until the majority of us, those not on the fringe, those of us who don’t accept the behaviors of our fringe groups become intolerant, nothing is going to change.

I commit to you to do my part.  .

Being half white and half black and not being on the fringe I am going to take the liberty to talk out of both sides of my mouth.

From my black side, to my fellow brothers.  Enough!  Stop worrying about the man, the system and what your being given and go take advantage of what’s there already.   Capitalize on what this country has to offer.  Allow Dick Parsons, Ken Chenault, Ursula Burns and Obama to represent what a blacks can accomplish.   Let go of the “ghetto” as a self-defining trait.  Embrace a culture of intellecualism and move forward.  Look “in” for change now.  Jesse, NAACP, Martin Luther King, and others changed the outside.  It’s now our turn to change the inside.  It’s a new fight.

From my white side, to my fellow white friends. Stop!  Stop trying to minimize the impact of 250 years of slavery and Jim Crowe.  There is real impact to that legacy, one you should feel blessed you haven’t had to live with.  Stop allowing people to tell jokes, or express their racist tendencies without calling them out.  Your refusal to call them out only allows them to walk away feeling they are not alone in their pathetic beliefs.  Call them out.  Call them out in public, throw them out of the party right in front of everyone.  Let it be known you don’t roll that way.  Stop allowing our nicety, don’t rock the boat culture to continue to allow racism to fester under the covers.  Stop defending organizations who allow racist ideologies or people to sit within their ranks, EVEN if the organization itself isn’t racist.  We are who we hang out with.   Stop expecting blacks to “get with the program.”  You have ownership in this too.   Stop defending yourself.  Stop saying you didn’t own any slaves. Recognize you are part of the problem. Stop blaming and look in.  Evaluate your language.  Look at what you teach your kids.  Assess your passive and subtle prejudices, get real with how you look at others.  Stop kidding yourselves.  It’s not over just because you freed the slaves and passed a law.  It takes time and effort.

Enough already.   NAACP, you’re done.  Get with the times or fold up.   Tea Party, stop defending yourself.  Both of you, vicioulsy and publicly distance yourself from those people who allow race to enter the discussion.  They are there, stop offending people by saying their not.

The majority of you who are reading this; black or white I suspect are not the fringe and my hope in writing this and throwing down the gauntlet is you will go back to your community and tell the rest of the folks, stop pointing fingers, stop blaming, it’s time for us to take care of our own back yard.  It’s the only way this thing is going to get any better.

There I said it.

UPDATE:

Now that the truth has come out about Ms. Sherrod’s case, I am a bit embarrassed that I got caught up in the back and forth.  I should have dug a little deeper and maybe even waited a bit longer before posting this.  It is clear now why the audience DIDN’T “smack her off the stage”.   Good for Shirley for being woman enough to grow from her earlier life experiences.   This being said, my point does not change.  We need to stop pointing fingers and clean up our back yards first.

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My Big Weakness

I have a big weakness.  I know it and it got the best of me this a.m.   I am very short and impatient with new idea laggards or as Seth Godin put it the “resistance.”   I inappropriately tore into someone this a.m. who I felt was being a resistor and it wasn’t fair to them.

I have been working an initiative at work that is different, it is outside the norm.  It leverages new tools, communication approaches and engagement.   I have been working it since March.   The process has been painful in many ways.  I’ve encountered the resistant at multiple different stages.  The people who say, “I don’t get it,”  ”Have you gotten executive approval?”  ”This isn’t going to work.” “It’s too risky, what if people do this and that with it.” ” We can’t do this because . . . ”    I am continually having to address these people and it makes it hard to be successful in introducing new things.   I really struggle with the people who ask these questions and make these types of statements.   I see them as being in the way.

The resistance, as Seth Godin calls it, is that part of our brain that wants to be safe, it avoids change, follows the rules and likes the status-quo because it’s predictable.

Seth describes the resistance at work in his book Linchpin like this:

You work with people who are totally at the mercy of the resistance.  They assist the devil by being his advocate in meetings.  They  follow the rule book, even parts you didn’t know about. They love what worked before and fear what might be coming.

He’s right and I don’t handle these people well.  My personality is like that of a shark.  Not the aggressive nature, but the metaphor by which sharks must keep moving to breathe.  Sharks need to keep water moving through their gills in order to breathe.  If they stop moving, they run the risk of suffocating.  In this manner, I am a lot like a shark.  I breath progress, and momentum.  I can’t stand the feeling of stagnation.  I need things to keep moving.

I bit this persons head off today because I felt like they were being the resistance.  It felt like they were slowing things down.  They asked me one of those fear based questions.  They asked if we had approval and support from another group.   It didn’t feel as if it was asked in a way that suggested they were looking to help the effort or improve on it but rather to control the effort.  I didn’t handle it well.

I apologized both on the phone and in a separate email.  Regardless of his question, I was wrong to respond the way I did.

That being said, moving forward I need to be more cognizant of how I engage with the resistance.  No one ever wins by trying to “stamp” out the resistance.  It takes tact.  Tact, currently I am not very good at.

Selfishly, I wish I didn’t have to deal with it.  I wish the resistance would flip the switch and start from the positive, what could be gained, how things could be better, etc.  I wish the resistance could see they have more to gain than lose by moving forward, by change.

The biggest irony in this tale, is much of the early resistance has come back and said they were wrong and they like the new effort and the value it is providing.  This is always nice to hear.  But man, it would be so much nicer if the fight just didn’t have to happen.   Until then, I need to get better at managing the resistance, because fighting it just doesn’t work.

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