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April 23 - May 15, 2022
Whenever there are glaring discrepancies in evaluating one of our executives, we double down on analysis rather than jumping to conclusions. There must be a reason why people are having very different experiences with this person. With enough time devoted to discussion, we always get to the bottom of it. Analysis first—especially when someone's future career is at stake.
Data Domain, we didn't hire our first full‐time salesperson until well into my tenure as CEO. First, we had to establish a good product‐market fit before we could attempt to cross the proverbial chasm between early adopters and the mass market—a concept first described in Geoff Moore's book Crossing the Chasm. We weren't ready yet to establish a systemic, repeatable sales process that would yield consistent results.
Selling in these initial stages is more akin to business development than a defined, repeatable sales process. In a business development situation, every aspect is interpreted case by case, and we adapt to the circumstances at hand. Pricing and contract terms are flexible. Selling, by contrast, is a systemic, highly standardized process.
One trap that leaders often fall into is failing to adjust to the natural life cycle of a company as it grows and evolves. If you try to run a mature, 500‐person company like a 10‐person start‐up, you will almost certainly fail. But, paradoxically, if you lose all the scrappiness of a 10‐person start‐up, your mature company may never reach its full potential.
The formative stage is treacherous and the subject of much study and analysis by management experts. Notably, as previously mentioned, consultant Geoffrey Moore coined the term “crossing the chasm” back in 1991 to describe the unique challenges and activities associated with this phase of a start‐up's evolution. Lots of companies make it far enough to attract some early adopters, and they have enough funding to pursue a much bigger market. But then they fall into the chasm between appealing to a narrow niche audience and building a large and sustainable customer base.
You'll know when it's time to ramp up when customers are virtually ripping the product from your hands. If you feel overwhelmed by demand, you need to mentally adjust to the next stage of development.
We are all prisoners of our past to some extent. We bring our frame of reference, shaped by our unique combination of experiences, into any new role. But the most valuable leaders are those who can combine the scrappiness of a start‐up leader with the organizational and diplomatic discipline needed in a big company. Those who can scale up or scale down as required. Those who can set aside their experience when necessary, apply first principles, and think through situations in their elementary form.
Similarly, I ask our teams what's the one thing we should be doing urgently that we are not doing for some reason? This is to avoid getting too engrossed in day‐to‐day activities and failing to see the forest for the trees. Always be paranoid about what you are not doing but should be. And, conversely, what are you doing that's of marginal value but crowding our more essential ways to use our time and resources?
The downside of any established market is the friction created when new ways of doing things challenge the comforting traditions that may stretch back for decades. Older, more conservative professionals in any field may fear that an upstart technology will threaten their job security and livelihoods. But more forward‐looking (and often younger) professionals get excited by breakthrough innovation and can't wait to try it out. That's what drives the distinction between early adopters and late adopters, explained so brilliantly in Geoffrey Moore's landmark book, Crossing the Chasm. If you try to
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The key strategy is to aim for early adopters first because they (and their companies) are more comfortable with taking a risk on an exciting but still unproven technology. They are also astute evaluators of new technology, eager to change things for the better and then show off to their peers how cutting‐edge they are.
Late adopters—a much bigger area under the bell curve—are motivated by minimizing risk as well as costs. They have no interest in being the first kid on the block with some cool new technology. The definition of crossing the chasm is building a beachhead of satisfied early adopters, who can then be used as examples to reassure late adopters. You have to make an irrefutable case that your new solution is both safe and cost‐effective. That's when the broader market will become accessible to your pitch.
If you offer a partial solution that requires your customers to seek the rest of the solution elsewhere, you are making it easy for a competitor to drive through the gap you left open.
Several short tenures in a row also imply that you had poor judgment in choosing those roles or perhaps that you're the kind of person who gets into chronic conflicts with management. One brief tenure will be seen as a fluke by future employers, but a series of them will be seen as a red flag. The shortest tenure I ever had was three years; all of my others were in the five‐to‐seven‐year range.
Experience can be a proxy for aptitude but not a perfect one. People that have been with successful companies are often swept along in the vortex of the company's momentum. The aura of a great company can rub off on its employees, to the point that it can be hard to separate the company's success from the employee's. We've mistakenly hired some passengers this way, thinking they were drivers.
Conversely, I'm always intrigued by candidates who once crashed and burned with a company and learned something from facing those serious challenges. Humans always learn more from our struggles and failures than from our easy successes. Your experience will only be valuable to prospective employers if it taught you useful lessons that you can take into your next role. Speak credibly and insightfully, in detail, about your experiences, no matter how disappointing they were.
Whenever talent is in short supply, as it almost always is in Silicon Valley, betting on aptitude is a great recruiting strategy for employers, albeit a less certain one. You can hire people ahead of their own development curve and inspire them to grow into challenging new roles.
big red flag in many workplace cultures is a sense of entitlement. We always sought low maintenance, low drama personalities. We valued traits such as strong task ownership, a sense of urgency, and a “no excuses” mentality. People who get things done rather than explain why they can't. This personality type lines up with our obsession with hiring drivers rather than passengers, as we saw in an earlier chapter.
You will have numerous jobs, titles, and pay grades over your career, not just between companies but within companies. At each step, be thoughtful and purposeful rather than opportunistic. Sometimes it might be best to take a step backward in title or pay to set up a better path forward. Your peer group will try to influence your career decisions, but be your own person. Steer your own ship. Never put your personal decisions to a vote.
What does that mean? For starters, never go into a board meeting, tee up a topic, and ask them what they think. Instead, prep carefully with your team in advance, and then go in and tell them what you think. If they then respond with questions or concerns, that's fine. You have started the meeting by filling a vacuum, instead of creating one. That will make it much harder for them to dominate the discussion.