When selecting software vendors, besides for just doing the usual (feature analysis, price, compatibility, ease-of-use, etc.) look for one core x-factor: rate of improvement of the product.
The faster the product has been improving in the last year, the more likely it will improve in the coming years.
Look for products that get better quickly. Look for products that fix bugs and performance issues quickly. Look for products that add new features. Look for products that keep delighting customers.
One way to do this is note your evaluation of the product when you first see it and then in subsequent times that you see it.
Look for companies that publish change logs
Reward companies that publish clear change logs on their product and show how the product is getting better over time (which means they are honest about past bugs). We’ve been experimenting with publishing change logs at SafeGraph and it has significantly helped our sales cycle and ability to gain customer trust. In addition, it is helpful for current customers to keep track of our ongoing changes. We would love for other companies to copy us.
Summation: a great way to chose a vendor is to look for the rate their product is improving.
Many companies have strong alumni networks. The most famous of which is the PayPal Mafia which includes Peter Thiel, Reid Hoffman, Elon Musk, David Sacks, Jeremy Stoppelman, Luke Nosek, Keith Rabois, Reid Hoffman, Max Levchin, Roelof Botha, and many others. It is a truly astonishing alumni network.
The best predictor of having a strong alumni network is a company that: (1) had a successful outcome but not crazy successful (like a Facebook or a Google); (2) the company went through a bunch of trying times (and almost went out of business); and (3) the employees built a company that was super enduring and even prospered post-exit.
PayPal fits all three of these criteria. It had a strong exit (but not Google-like escape velocity), it almost went out of business multiple times (highly recommend reading PayPal Wars by Eric Jackson), and it continues today as an independent company (NASDAQ:PYPL) that was spun out of eBay (its original acquirer in 2002).
I often get asked why the LiveRamp alumni have been so successful. While the exit was only 20% of PayPal, it had many of the exact same characteristics. (1) The exit was good; (2) the company almost went out of business multiple times (and like PayPal, we had to pivot hard from “Rapleaf” to “LiveRamp”); and (3) we built a company so enduring that it ended up being the crown jewel of the acquirer and now is an independent public company (trades at NYSE:RAMP).
At the time of announcing our exit (in May 2014), LiveRamp was around 50 people. It is amazing how many of those original LiveRampers are now doing super interesting things.
So without further ado, I list the notable LiveRamp alumni and what they are doing at time of writing (Jan 2019) … please let me know if I missed anyone.
Caitlin MacDonald Bartley – CEO at Cred
Ryan Buckley – CEO at MightySignal
Eric Chernoff – CEO and cofounder at Retain.ai
Phil Davis – Chief Business Officer at TowerData
Ken Dreifach – Member, ZwillGen
Bryan Duxbury – Chief Technologist at StreamSets.
Dayo Esho – CEO and cofounder of TravelJoy. Dayo was a cofounder of LiveRamp.
Greg Fodor – fmr CTO and cofounder at AltspaceVR
Auren Hoffman (that’s me) – CEO of SafeGraph. Previously CEO and cofounder of LiveRamp.
Thomas Kielbus – cofounder at RideOS
Chris Kline – cofounder at CTO at TravelJoy
Ron Johnson – Vice President Sales Analytics at Workday
Anders Jones – CEO at Facet Wealth
Jeremy Lizt – on the beach taking a much needed break. Jeremy was cofounder of LiveRamp and ran engineering from founding (2006) until Jan 2018.
Nathan Marz – founder of Apache Storm
Travis May – CEO and cofounder of Datavant. (Travis succeeded me in running LiveRamp in 2015)
Luke McGuinness – President & COO at TVision Insights
Patrick McKenna – Founder, HighRidge Venture Partners
Bryan Morris – CFO at Kinetica
Brent Perez – President and cofounder at SafeGraph
Mike Safai – Founding Partner at Dexterity Capital
Armaan Sarkar – CTO at Wove
Dan Scudder – CEO at Highland Math. Dan is the person responsible for coming up with the “LiveRamp” name.
Pete Schlaefer – VP Business Operations at AppLovin
Justin Schuster – Head of Marketing at Blend
Manish Shah – CEO of Peerwell. Manish was cofounder of LiveRamp.
Mohammad Shahangian – Head of Data Science at Pinterest
Vlad Shulman – cofounder and CTO of Retain.ai
Eddie Siegel – CEO and cofounder at Wove
Dan Stevens – cofounder at VP Data at Windfall Data.
Vivek Sodera – Co-Founder at Superhuman. Vivek was cofounder at LiveRamp.
Nikhil Sud – CTO at CoWrks
Chris Taylor – CRO at Wove
Michel Tricot – cofounder at RideOS
Alex Wasserman – cofounder at Wove
Takashi Yonebayashi – CTO at SafeGraph
In addition, many of the best people at LiveRamp are STILL at LiveRamp. That includes:
James Arra – President and Chief Commercial Officer at LiveRamp
Sean Carr – VP of Engineering at LiveRamp
Anneka Gupta- President and Head of Products and Platforms at LiveRamp
Joel Jewitt – VP of Strategic Operations at LiveRamp
Allison Metcalfe – General Manager of LiveRamp TV at LiveRamp
Rebecca Stone – Head of Marketing at LiveRamp
and many many others at the company
Summation: while LiveRamp was a company chock-full of talent. Its alumni success was due to being a company that: (1) had a successful outcome but not crazy successful (like a Facebook or a Google); (2) the company went through a bunch of trying times (and almost went out of business); and (3) the employees built a company that was super enduring and even prospered post-exit.
One of the hardest things to figure out is how to improve. How do you get better and what should you focus on.
The best improvement strategy is to focus not just on your strengths … but on just 1 or 2 strengths. Focus, focus, focus on making your strongest traits even stronger. Especially once you are over 30 and you have more of a clear assessment of your skills and abilities.
How do you know what your strongest traits are? A good exercise is to ask the twenty people closest to you (friends, colleagues, spouse, parents, siblings, etc.) a simple question: “what are the 3 things that you think I am excellent at.” While you will get a lot random answers that will be just noise, you may find some super consistent answers (especially if you are focusing more on work colleagues). Gather that data and investigate those strengths.
The strategy most smart people use is to get good at lots of things at the same time. They spread their improvement time like one might spread peanut butter on toasted Wonder bread. This strategy does help you improve and you will notice the improvements really fast (because you are often focused on things you are bad at where just a little work will go a long way). And that feedback loop of getting a bit better and seeing the progress is addicting (especially to smart people) so they spread the peanut butter even more and get better in more diverse areas. This is improvement and it is growth and it is positive … but …
you could grow much greater by focusing on just 1-2 strengths and getting even stronger.
The most successful people in the world (think Bill Clinton and Steve Jobs) have glaringweaknesses … and it is unclear if they ever seriously worked on those weaknesses. Would they be better if those weaknesses went away? Of course. But then they might not have focused as much effort on their strengths.
If you are a terrible public speaker but great at communicating by writing, then focus on getting even better at writing. Strive to become the clearest writer in the world. Take really hard concepts and clearly state them. Don’t succumb to pressure from your coworkers, friends, etc. to get a speaking coach and spend hours becoming a better public speaker. Focus instead on what you are already naturally talented at go from good to great.
That said, there ARE certain weaknesses that are so debilitating that you need to focus on them if you have them. For instance, someone addicted to daily heroin use should probably spend all their time defeating that addicting (rather than focusing on their strengths). But most people’s weaknesses are not nearly as pronounced as being a heroin addict … and most people should instead focus on their strengths.
Summation: focus on getting better at your strengths and mostly ignore your weaknesses.
It is extremely hard to change a large company’s culture for the better. (It is relatively easy to change the culture for worse.) So first, let’s assume you are trying to change a company’s culture for the better.
Given that, you first need to assess the current company’s culture. There are two vectors to assess: 1. Do the employees have high expectations of themselves? 2. Do the employees have high expectations of the other employees?
If the answer to both questions is “yes,” then you likely have a good culture already and it just needs some tweaking. It is a High Performance culture. This is the ideal state and pretty much every high-performing company (whether large or small) in history fits in this category.
If the answer to both questions is “no,” then you might as well not even try. The company is a lost cause and will eventually become a discarded fossil. Unfortunately, even some of the best companies can evolve to this state over time. If you find yourself working for one of these companies, find a new job immediately.
The harder discussion is what happens if your company answers “yes” to one question and “no” to another. Let’s explore this.
The Hero Syndrome If the culture is defined by employees having high expectations of themselves but low expectations of their colleagues (“yes” to #1 and “no” to #2), then you have a culture of hero syndrome. It means that some people feel it is their duty to carry the team. It also means there is a lack of trust that others in company will do a great job. It causes the high performers to work longer and longer hours to carry everyone else. And it means that there are way too many low performers in the company because there are few consequences for free-riding.
In the Hero Syndrome scenario, you have the ability to change the culture to become a high performance culture (getting to “yes” answers to both questions). It is extremely hard work and most companies fail to make the transition, but it is possible. The main thing you need to do is upgrade your team and promote trust. Here are the things you need to do to make the changes:
1. Upgrade your executives. Most CEOs are afraid to upgrade their executives because they are worried (1) about how the rest of the organization will feel if “Bob” leaves; (2) worried about how the street or investors will think; or (3) worried that if Bob leaves before his replacement starts, the CEO will have to jump in and do the work.
If Bob is an executive and is not a high-performer, he is a cancer in the organization. You cannot upgrade your talent without starting at the top.
Of course, this assumes that you (the CEO) is a high-performer. If you are not, there is no chance for transition.
2. Lay off the low-performing people. This is obvious but so many companies forget this step. And when you lay off the low performers, you need to signal to everyone else in the company that you laid these people off BECAUSE they are low performers. Too often when companies do lay-offs, they tell a story that people were “redundant,” or they are making cuts in a division. Or it was “market forces.” And while this explanation makes the people being laid off feel better, it makes the people remaining at your company feel insecure. A high performing person could interpret the layoff to think that their job could be at risk if market forces change. So simply, when you lay off low-performers, communicate to everyone in your organization that you laid them off BECAUSE they were low performers.
2a. Never, ever, lay off a high performer. If the employee is awesome and their job becomes “redundant,” move that person somewhere else in the organization (even if the move ruffles feathers). Once you identify a superstar, do everything to make sure they continue to work in your company.
3. Change your internal policies to promote trust. You cannot move to “yes” on questions #2 if people in your organization do not trust each other. You need to do everything that promotes trust. Some ways to promote trust:
Let people know that you trust them by stopping to micro-manage them. The only reason to micro-manage someone is because you do not have full faith in them. If you find yourself micro-managing someone, you need to take a step back and think about if you have the right person.
Decentralize as many decisions in your organization as possible. This is especially true in IT — empower the people using a software product to buy the software product directly (and not be dictated by IT).
Eliminate necessary meetings and reporting that have been put in place because trust is low.
The good news is, you CAN move from the Hero Syndrome to a High Performance culture … but it is just really hard.
The Hypocrite Syndrome The opposite of the Hero Syndrome is the Hypocrite Syndrome — employees having low expectations of themselves but high expectations of their colleagues (“no” to #1 and “yes” to #2).
In this case, I think it is almost impossible to change the culture to a high performance culture. You are going to be stuck in a nasty loop.
Unless what you are doing is a matter of world peace, I would suggest you leave the company and try to join one that already has a high performance culture. Being in the Hypocrite culture is often about nasty politics, blame, and stagnation.
Summation: All high performing companies have employees that have both high expectations of themselves AND high expectations of their colleagues. If your company does not have that, the only other redeemable scenario is a company with employees that have high expectations of themselves and low expectations of their colleagues.