Y Combinator wisdom on helping startups succeed

LaunchPad_300I just finished reading Randall Stross's The Launch Pad: Inside Y Combinator, a great accounting of the origins, growth and successes of the seed accelerator company that helps "budding digital engineers."  This blog post is a little bit book review, but mostly highlighting the wisdom that Y Combinator seems to capture and employ in its work helping startups succeed.

I could not help but take in that wisdom and Stross's stories through the lens of my own experiences creating a tech company, and while I felt affirmed in having learned a lot of the things that Y Combinator tries to teach its program participants, I also had plenty of forehead slapping moments about things I wish I'd understood better.  I think some of those tidbits are very relevant to what I'll do next, and present day efforts to invigorate the local tech economy here in Richmond, so I'm including some comments on them here too.

If you don't already know about Y Combinator, I encourage you to check out their website, or watch this very recent interview with Paul Graham, who has headed the company's efforts most of this time.  The bottom line is that they host a three-month program in Silicon Valley to help startup companies with the money, advice and industry connections they need to go from concept to initial implementation, ready for investors to take them to the next step.  As Stross describes, they focus on admitting young groups of founders who are going to bring the hard work and innovation needed for success, even if their initial idea for a startup isn't sound. If you use Dropbox, you're benefitting from a startup incubated at Y Combinator.

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Use the cloud, keep control of your data

Balloons in the Rose GardenAfter ranting recently about the choices we make to give "big data" companies access to our private information in ways that might be abused or exploited by government eavesdroppers, I thought it would be worth sharing some of the options I've found for using "the cloud" while also retaining a reasonable level of control over access to the data stored there.

This post has information about tools and software you can deploy yourself to approximate some of the functionality that third party services might provide, but that might also make you vulnerable to privacy and security vulnerabilities.  It's based on my experiences designing and implementing solutions for my own company, so it's mostly applicable to the interests of businesses and organizations, but may also be useful for personal projects.

A few important disclaimers: any time you make your personal or corporate data available on Internet-connected devices, you're creating a potential privacy and security vulnerability; if you need to keep something truly protected from unauthorized access, think hard first about whether it belongs online at all.  Also, the tools and services I'm listing here are harder to setup and configure than just signing up for one of the more well-known third party services, and may require ongoing maintenance and updates that take time and specialized knowledge.  In some cases, it requires advanced technical skills to deploy these tools at all, which is the reason most people don't or can't go this route.  Hosting and maintaining your own tools can often have a higher initial and/or ongoing cost, depending on what financial value you assign to data privacy.  Sometimes the privacy and security tradeoffs that come with using a third-party service are well worth it.

Still interested in options for using the cloud without giving up control over your data?  Read on.

Email and Calendar Sharing

Need a powerful, free email account?  Need robust calendar management and sharing capabilities? Everybody uses Gmail and Google Calendar, so just sign up for an account there, right?  Unless you don't want Google having access to all of your email communications and usage patterns, and potentially sharing that information with advertisers, government agencies or other entities.

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Are your professional strengths being used well every day?

Extinction Level EventIn reading the Gallup book First, Break All the Rules: What the World's Greatest Managers Do Differently, I encountered their list of questions that, when answered by close to 200,000 employees across almost 8,000 business units in different companies, turned out to be a good measure of organizational dynamics that led to lower employee turnover, higher productivity, and higher customer satisfaction.

At their core, the questions are asking an employee whether they feel their strengths are being used every day at their organization. The questions are simple and applicable across a lot of different kinds of organizations; I've listed them out below.

Using the free open source software LimeSurvey, I set up the questions in an open ended online survey on Summersault's Intranet.  Around twice per month, a randomly selected subset of the staff get an automated email invitation to answer the survey, anonymously by default but with the option to provide our names if we want.

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In The Plex, a great history of Google

I just finished reading Steven Levy's In the Plex, a great history of Google, Inc.'s origins and growth, and a great insight into what the company could look like in the future, or at least how it might get there.

The story of Google that matters for most people is how it affects their daily lives (searching, web browsing, mobile phones, mapping/navigation, email, calendaring, YouTube, news, etc.) but I appreciate that Levy's book focuses on the personalities and processes driving the evolution of what is arguably one of the most transformative corporate and technological entities of our time.

It can be easy to forget that behind some of the game-changing products and services produced by the company, there were real people thinking through issues of privacy, dealing with cross-cultural considerations and navigating interpersonal dynamics all while trying to make a living and find a sustainable business model.  They had/have desks, meetings, slide shows to give, families to care for, water-cooler conversations to have, and Levy does a great job capturing and re-telling those stories from the days of "two guys in a garage" all the way through the present days of life as an international corporation.  This is not always done with the most critical eye - those with concerns about Google's operations or policies may be put off by the extent to which this book is an homage - but on the whole I think Levy is fair in calling out the moments when individual Google employees or the company as a whole screws up, and placing those in the context of Google's good intentions.

A few themes in what Levy's book revealed about "the Google way":

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Stand With Main Street ads and taxing online commerce

You might open a newspaper soon to see an ad like the one at right which appeared in my local paper a few days ago.  It encourages you to "Stand With Main Street" to protest "special treatment" of Amazon.com that allows them to forgo the collection of sales tax on online purchases, resulting in an unfair advantage over "every Hoosier brick and mortar retailer."  I don't usually see full-page ads related to Internet commerce in a market this size, so I thought I'd investigate the issues at stake.

The question of taxing e-commerce transactions is a bit complicated to be sure.  If you have a strong and concisely-worded position on it, you're probably running for national political office, or a Libertarian, or both.

On one hand we can see the clear financial and psychological advantage that an online retailer has with customers who are weighing a purchase from a local store that charges tax against an online store that doesn't, and maybe offers the item at a slightly lower price too. At the same time, that online retailer may be benefitting from the infrastructure that sales taxes others are collecting help pay for (setting up warehouses, trucking goods around state roads, etc.).

On the other hand, we know that laws around state sales taxation were created prior to the age of the Internet and that the models of online business and affiliate sales have completely changed the way the world does business, and current attempts to rewrite them in order to create short-term bandaids on ailing state economies are probably not in the best interest of business innovation, especially when they favor large retailers (online and off) and send small businesses and people who make a living as Amazon.com or eBay affiliates into a quagmire of tax collection bureaucracy.

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Summer reading mini book reviews

What We Leave BehindIt's been a decent summer of reading for me, and I thought I'd post some very brief reviews of some of what I've encountered along the way.  For each book I’ve linked to an online purchase option, but please consider buying from your locally-owned bookseller or visiting your local library first.  I've organized the reviews into three sections: Culture, Novels and Business & Politics:

Culture

Ghost in the Wires by Kevin Mitnick
Finally, Mitnick gets to tell his side of the story when it comes to his adventures in computer cracking and social engineering.  Though his writing style isn't particularly compelling and his personal meditations on the interpersonal aspects of his adventures are a bit awkward, the details of how he pulled off some pretty technologically impressive (albeit illegal and sometimes destructive) hacks - and how law enforcement responded - make for compelling reading on their own.  As someone who spent a fair number of hours in my childhood trying to deconstruct how the phone system and the emerging world of BBSes and Internet nodes worked, Mitnick's book is a great visit to the past and a reminder that humans continue to be the weakest link in all computer security.

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Rediscovering what you already know

J.C. Penney Co. store downtownI see a surprising number of organizations and businesses that suffer from the malady of reinventing basic business processes and rediscovering tools and resources they already had, at the expense of using up valuable staff time and straining relationships with their customers and constituents.

Sometimes this reinventing and rediscovering happens because there's been a change in staffing, sometimes it happens because people just don't bother to write things down.  But I'm amazed at the "shortcuts" people think they're taking to work around those cases:

  • We couldn't find our username and password to manage our website domain name, so we just registered a new one and re-printed our business cards.  Problem solved!
  • We forgot that our last IT person already had a Facebook page setup, so we setup a new one and then asked everyone to like the new page.  Problem solved!
  • We're not sure where the source design files are for our marketing brochure, so we'll just design a new one.  Problem solved!

Meanwhile you've lost a bunch of would-be visitors to your website who still have your old business cards, halved your population of Facebook followers, and wasted someone's week on solving a problem that was already solved.

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The power of the agenda setter

In every organizational conversation, there's some process for setting the agenda of what the conversation will be about, and how it will be conducted.  Usually there's a subset of the organization's members who set that agenda - sometimes just a single person - shaping the issues and decisions that the organization takes on.

In a non-profit organization board meeting, it might be the Executive Committee or the board chair.

In a small business, it might be the business's owners or managers.

In a city council meeting, it might be the President of the council or the group's political majority.

In a community of faith, it might be church elders.

Sometimes we forget the power that the agenda setters can have.  We focus on the outcomes of the conversations that we do have, but we forget or overlook that some conversations aren't conducted in the first place.

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Richmond Center City Certified Tech Park Funding

On down Main Street(Sometimes I wake with a start in the night and think I can hear Palladium-Item Viewpoints Editor Dale McConnaughay's voice chanting in the distance, "you must take a stand, you must enter the fray!"   It's probably because almost every editorial the newspaper has published in the last two months about the income or expenses of City government have included a not-so-subtle encouragement for current candidates for office to make that particular issue a part of our political campaigns.  Today, I'll bite.)

The Center City Development Corporation has asked that $300,000 of the $5 million in funds available through Richmond's Certified Technology Park account be used to support renewed operations of the organization and its Uptown Innovation Center facility.  The Palladium-Item covered the request today in a news article and related editorial, the latter of which painted the request as just another ask for taxpayer funded handouts to support private business efforts and essentially encourages a "no" vote by the Redevelopment Commission, the entity that approves the funding request.

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