Intellectual Sabbaticals: An Entrepreneurial Alternative

This is an article entitle Intellectual Sabbaticals: An Entrepreneurial Alternative that I wrote for EntreWorld (the publication of the Kauffman Foundation).

I have reprinted the article here:

Intellectual Sabbaticals: An Entrepreneurial Alternative

In October 2002, when I sold my third company, BridgePath, I was faced with the decision about what to do next. After five years of working 90-hour weeks to build my enterprise software firm, I knew that I wasn’t ready to jump right back in to another company.

Yet a sabbatical, with its image of unstructured time on the ski slopes or golf course, didn’t appeal either. Like a lot of entrepreneurs, I need to feel productive.

I could have been stuck in a self-imposed limbo save for one factor. I’ve had a deep and long-standing interest in a topic other than entrepreneurship: foreign policy. And I had always envisioned at some point pursuing that dream.

The Case for Structured Time Off

So I used my interest as base to design a different type of sabbatical, which I have come to call an intellectual sabbatical. Rather than being unstructured and open-ended, my time off was highly regimented, with a fixed beginning and end, and designed to set me on a new course.

It’s a formula I’m now ready to recommend to other entrepreneurs, especially those who’ve long nurtured a passion for something other than company building. Of course, in my case, it helped that I was young –- I was 28 when I sold BridgePath. I didn’t have a family to support. And given that I had just sold my company, I had the financial resources to support myself. I was planning on taking three years off.

In constructing my sabbatical, moreover, I had a perspective from which I could draw, plus a goal and a plan. My perspective had been whetted as far back as junior high, when I was the type of teenager who would read biographies of Henry Kissinger. In college, I regretted that requirements for my engineering major kept me from taking public policy courses.

Even as an entrepreneur, with a grueling 24/7 schedule, I found time to join foreign policy organizations and start a few of my own. I also launched a blog, Summation, to have a platform for airing my views on the subject.

Clear Goals, Careful Planning

In pursuing my sabbatical, I wanted first and foremost to earn what I call an unofficial masters degree in foreign policy. My goal was to be able to assist on the world stage. I also wanted to be able to introduce others, specifically business people, to a field they otherwise might not pursue on their own.

Careful planning underscored my time off. I considered myself the CEO of me, and, in fact, friends have joked that I worked harder at that job than I did as CEO of my company. I set daily, weekly, monthly, and quarterly goals.

I determined, for example, that I would read 40 pages a day of policy books, manuscripts, reports, and Web sites. I met weekly with at least 20 people who could enable me to broaden my thinking. I vowed to attend at least one foreign policy conference a month.

As a guest at conferences sponsored by think tanks, the military, and even individuals who held meetings in their homes, I was almost always the resident dummy. I felt honored to be invited. I could see that the contacts I made would lead to new opportunities. I got the chance, for example, to visit all four branches of the military and to spend a week as a U.S. delegate monitoring parliamentary elections in the Republic of Georgia.

Finding Yourself

My sabbatical, which I had thought would continue for three years, actually came to an end within a year, when in 2003, I launched my fourth company, Stonebrick Group.

Just as in an entrepreneurial company, I felt the need to evolve the company of me after it became clear that my learning curve wasn’t as steep as it had been at the beginning. I wondered, given that, whether I could continue to justify the time spent.

In addition, I was learning that, at least in part because of the knowledge I had gained, individuals and companies were interested in retaining me to arrange introductions that would facilitate their business interests. I discovered that I enjoyed that type of work, which is what Stonebrick does. Currently, I have six clients, four of which have interests outside of the United States.

Ultimately, my intellectual sabbatical, because it was structured, limited in time, and designed to help me figure out what I wanted to do, has enabled me to incorporate my passion into my work. I firmly believe that indefinite vacations can become too stressful for entrepreneurs and can lead to skills atrophying.

Sabbaticals, of course, are supposed to provide opportunities to reflect on life and make choices for the future. It’s ironic that structured time off fulfils that mission better than months on the ski slopes, but I believe that it does. So use your down time wisely. By spending your sabbatical in regimented learning, you will be taking the time to learn what you want to do next.

Why a college degree does not means as much as people think

Getting a college degree is not truly necessary and employers should stop requiring them for most jobs.

Most jobs that require a college degree only do so because so many people go to college nowadays and employers just use it as an easy way of discriminating in-favor of the "motivated". You don’t really need a college agree to be a city clerk or a salesperson or even a software developer.

Among my circles the common question is "where did you go to college?" not "did you go to college?"

yes, a degree from a good school proves that you’re smart and can be a good ticket. But other than that, how essential is college? — especially if it is not from one of the most prestigious schools?

most things you learn in college you could learn on your own, or by taking a class or a seminar, or by joining a study group … or just by reading a book or looking it up on the Internet …

yes, college is essential if you want to be a professor and it is necessary if you want to go to grad school (though I would agree that most masters degrees are unnecessary as well)

the college experience is very important in developing people socially and increasing maturity — and also helping increase our drinking skills. But that is only true for the more elite 4-year universities — not commuter schools where most people get their degrees. couldn’t two years of national community service be much better for most people?

skills are important to learn: nursing, mechanics, dry wall, sales, putting together my computer, writing … all those things would give people a much better living then the typical college degree does

best education I ever got was the training I got on a summer job I had right after my senior year in high school. I went door to door for the environment asking for money. I learned how to make a sale in 6 seconds. You can’t learn that at no college … we don’t need no education …

Books: How We Know What Isn’t So

Review of How We Know What Isn’t So by Thomas Gilovich

This is a book on bias and on prejudice and stereotyping.

Everyday we all make decisions by relying on our biases — it is human nature. We misinterpret data, assume they are better then everyone else, and we believe what we are told.

This is a masterful book that Gilovich put together and I highly recommend it. First, the book is short. Second, it is the perfect companion to Influence: The Power of Persuasion (which is one of my favorite books of all time).

To really understand humans I suggest you read Influence, the Tipping Point, How We Know What Isn’t So, and Why We Buy. I haven’t yet read Gladwell’s new book, Blink, but I suspect that one too (on whether you should trust your gut) might join these four important books as a must read.

Ukraine elections … the sequel

My recent blog on the Ukrainian elections has been getting a lot of hits lately — it is very timely.   Last year I was in Georgia, this year in Ukraine.   similar situations.   will the outcomes be similar?  too early to tell but I don’t think it will happen.

i’m worried.   one always worries when hundreds of thousands of people protest in the freezing cold.   in means they’re serious (as Kiev can get pretty chilly this time of year).   and the Yuschenko supporters are pitching tents and staying put.  for now.

we cannot afford to let Ukraine lapse into a civil war … and yet we cannot afford to have its citizenry feel so unempowered.   so we wait and hope the sides come to a resolution as the alternative, a civil war, is not unlikely.   

see: Questions linger about Yuschenko’s illness
see: Monitoring the Ukraine Presidential Election

Brown belt and black shoes — why fashion is stupid and makes no sense

Why does fashion matter? I mean, what does it say about a person that is fashion coordinated? Only that the person spends a lot of time thinking about fashion. Is that such a good thing???

Why can’t I wear a black belt with brown shoes or visa versa? Why is this such a faux-pas? And when I do this, why does everyone chastise me to no end?

And why can’t I wear my blue faded jeans? How can a good pair of Levi’s go out of style?

Fashion is stupid.

Whoa!! Do I dare say that? Yes … I’ll even say it again … watch out … here it comes …

FASHION IS REALLY STUPID!!

Yeah. I can understand trying to look clean and presentable but why are ALL the men wearing those diagonal stripes these days? I mean is everyone a lemming and just needs to follow the oracle of the "trend"???

Ok … something else that bugs me .. Ties. I mean, what is the purpose of a tie except to suffocate you and to land in your lunch? I just do not understand the point. I mean, how did all of western society conform to such a stupid fashion? Don’t we have an sense to change this fad?

Guess what else is stupid??? Grammar. And spelling. Huh? Yeah, Spelling. And table settings.

OK. I admit it. I don’t know a thing about grammar. I never learned it. And frankly … I don’t care. I’m sure this post will be riddled with grammatical errors … but guess what? You’ll still understand what I am talking about. You’ll understand me just fine.

So what’s the big deal about grammar???

I find huge joy in ending my sentences with prepositions.

And spelling. So Dan Quayle spelled potato as "potatoe" — so what’s the big deal? Is there anyone who speaks English who doesn’t know what he means? Spelling is really important to avoid confusion — and so is grammar by the way — but beyond that it as little value except to take a whole lot of brain power and to attempt to draw class distinctions — neither of which is really useful to society.

And … while I am on a role … who really gives a hoot about which side to set the fork??? I mean, come on!!! There might occasionally be some practical purposes (like so you do not steal your neighbor’s fork), but overall, table manners is a lot of hooey. When I’m at home alone … with no one else around … I like lick my plate. I mean, I just cooked something tasty, finished it, and there is some scraps on my plate (or in a bowl). So I lick it. Delicious. But I wouldn’t dare do that in front of company (or even in front of my best friends) … I’d be an outcast, a pariah, a fool.

So I sit there, sitting on my hands, staring at this delicious plate … and I bemoan things fashionable that are not purposeful …

Book: The Oligarchs: Wealth and Power in the New Russia

The Oligarchs: Wealth and Power in the New Russia By David Hoffman

David Hoffman (no relation to me) is a masterful writer and he brings to life six characters that shaped Russia from its post-Communist days — for better and for worse.

This book is similar to The Wise Men — the men that shaped the U.S. foreign policy in the post WWII era.

The book was originally sent to me for my birthday (in April) by Adrian Scott (CEO of Ryze) but I just got to it now. The book was fascinating and riveting. Though 500 pages, I could not put it down and it was a great addition to my trip to Ukraine.

Summation: if you are interested in the evolvement of the post-Soviet states, I highly suggest you read this book.

Book: How to Survive Dating: By Hundreds of Happy Singles Who Did & Some Things to Avoid from a Few Broken Hearts Who Didn’t (Hundreds of Heads Survival Guides)

Mark Bernstein and his company, Hundreds of Heads books, came out with their newest book: How to Survive Dating: By Hundreds of Happy Singles Who Did & Some Things to Avoid from a Few Broken Hearts Who Didn’t (Hundreds of Heads Survival Guides)

this is another great book and a great job of marketing by Mark. My guess is the the “How to Survive” series will become as popular as the “Dummies” books.

Monitoring the Ukraine Presidential Election

This week there were two extremely important presidential elections. The first (Bush v Kerry) overshadowed another important election — the Ukrainian presidential election (Yanukovich v Yushchenko).

On late night on Sunday, Oct 31, I was at a polling station in a town near Tiachiv, in western Ukraine near the border with Romania and Hungary. Me and my partner are with the OSCE (Organization of Security and Cooperation in Europe) and we are international election observers. Thus far … no problems, no issues. It has been a long day and we’ve been to a bunch of polling stations and experienced wonderful people.

Then … someone at the polling station motions for us to come over. They get a call that there are 50 strong men blocking the entrance to the county election headquarters. My translator relays the info to us. We quickly work the phones … I find he mobile number of the county election chairman and give him a call. He confirms … no one can enter or exit the territorial election commission headquarters — he’s boxed in and asks us for help.

We hop in our car and hightail it to Tiachiv — a 15 minute drive but get there under 10 minutes because we have Yuri — the best driver in all of western Ukraine. And sure enough — 50 thug-like men, all dressed in black and all big — are blocking the entrance. The police, inside and outside, have resigned to the fact that they are no longer in control.

I walk quickly, my translator hurrying behind me. I greet the men and they huddle around me. Intimidation. I ask who is in charge and big guy — at least three times my size — steps forward. He tells me his name is Ivor but refuses to tell me his last name. Then the others start poking me and ask to see my documents. I smile. I show them my documents and try to shake a few more hands. Most of these men are big, but they don’t look like they really want to be there. I imagine they would rather be home watching soccer.

Then they poke me some more and ask to see my bag. One of them asks if I have a bomb in my bag. Of course, I have no bomb … but I do have a big bag of potato chips which I produce for effect, Johnny Cochran style. If it doesn’t fit you must acquit…

I smile and ask them all if they want some chips. This breaks the ice and they all laugh. I’m a good guy now. We all smile and few minutes later, with the help of another contact in the town (and a former student of my translator) who we met the day before, we are able to enter the commission headquarters and soon precinct results were flowing in a little faster.

Mission

We arrived in Kiev on the Tuesday before elections … it was a beautiful day and a beautiful city. As one of 650 short-term observers with the OSCE (Organization of Security and Cooperation of Europe), we packed ourselves in two hotels. The observers represented dozens of European countries and we bond quickly. I met most of the Americans in the flight from Frankfurt to Kiev — people from a wide range of backgrounds. And unlike my mission last year to Georgia, I was not the youngest person in the group. The age ranged from a few people in their twenties to people in their seventies — and everywhere in between. Though most of the US delegates were from DC, many were from places all around the country.

Most of the American observers spoke Russian — though a few, like me, had little to no language ability.

The Europeans were generally more experienced in election monitoring — many had observed dozens of elections all around the world. Luckily for me, a unilingual American, all OSCE business is done in English and it is a requirement that all election observers must be absolutely fluent in English.

When we arrive in Kiev, I finally find out where in Ukraine I will be assigned: Uzhgorod. It is a choice assignment. Uzhgorod is the very Western-most tip of Ukraine and borders Slovakia and is 20 minutes from Hungary. I will be assigned to the Tiachiv region which borders Romania. We’ll be in the midst of the rolling Carpathian mountains. My guidebook says “untamed landscapes and dramatic scenery make the Carpathians a chosen destination for nature-lovers.”

One of my colleagues is not so lucky. She is assigned to a town that my guidebook says “there are 500,000 people living in this city and after you visit you’ll wonder why.” It is a mystery how the assignments to the different regions are made, but I am not complaining.

I meet my deployment team — we are three Germans, a Swede, a Czech, an Irishman, a Hungarian, and two Americans (including myself and someone from the US Embassy in Ukraine). The delegation is headed by a Dutchman and a Canadian.

We’re a diverse bunch. The Irishman is a character. He’s a former army officer who’s incredibly gregarious and has a big smile. He now runs logistics for a big Irish relief agency and over the last five years has been deployed in Kosovo, Bosnia, Iraq, Afghanistan, Sudan, and others. He likes to poke fun at my because I am an American and we have a good time trading barbs and downing beers.

My colleague from Sweden works in the Swedish foreign ministry and used to be a TV journalist there. He specializes in the former Soviet Union and speaks fluent Russia.

My partner is a German woman from the German Ministry of Environmental Affairs. She is originally a biologist and sent many years working in and around South Africa. She has never been an election monitor before and she does not speak Ukrainian or Russian either — so we will have a lot learning to do together.

We take a propeller flight (about 100 minutes) from Kiev to Uzhgorod that was surprisingly comfortable — even serving sandwiches and drinks. We stay at a huge hotel in the middle of town — probably had 450 rooms with only 50 people staying there as the tourist season ended over a month ago. The service was great — like everywhere in Ukraine. (in fact, one of the differences between Ukraine and Georgia was the service. Generally food was served quickly … and with a smile. People were very helpful … always going out of their way to be of service.)

The next day we head to Tiachiv

My translator is Edith – she is an English teacher in the local high school. She is Hungarian by background and speaks Hungarian, Ukrainian, Russian, and English fluently. She actually did not learn Ukrainian until in 1982 when she was 25. Her two boys, 15 and 13, love computers and the Internet. Her husband, who she married just one month after meeting him twenty years ago (“it was love at first site” she told me) works full time in Moscow because he cannot find an engineering job in Ukraine. He is only able to come home once every three months and takes a 2-day train ride to save cost.

Our driver is Yuri — 24 years old and has a great stereo system in his car. He is saving money so he can go to law school (both his parents are local lawyers).

We stay at a local hotel — almost like a bed and breakfast. The rooms where clean and well-kept and service was again friendly. In Tiachiv we meet with local election officials and visit the polling places ahead of election day. There is very little evidence of any campaigning anywhere in Ukraine even though the election is hotly contested. We ask questions about what is happening on the round and we look around for ourselves. Since both our driver and interpreter are from the area, we have little trouble getting around.

Election Day — October 31, 2004

I’m at polling station #89 — the hustle and bustle of hundreds of Ukrainians exercising their democratic right. A dog enters the polling station … it is a skinny white dog with black spots .. I think it wants to vote.

Everyone has hats and coats … it is chilly .. Everyone is in good cheer.

A nice woman just sat down next to me — she is an English teacher in the town of Rachiv and we talk. She mentions that her husband is a businessman and owns two of the local hotels and asks why I am not staying there. I mention that we are staying in Tiachiv but I’m impressed at her capitalist instincts as she is trying to get more sales.

I notice there is a disc ball hanging from the ceiling … we must be in some sort of dance hall … my kind of place.

We head to a poling station in a small church and now we are in a basketball gym in a remote village. Flowers are everywhere — on the polling booths, hanging from the basketball hoops, and on the windows. It is 11:15 am and it is already the fifth polling place we visited.

The ballot boxes are clear so as to prevent fraud. I watch an old man who’s job it is to tally everyone who votes. You can tell he takes his job really seriously.

Little kids come to vote with their parents. Many take the ballots from their daddy or mommy and place it into the ballot box. Kids are learning democracy from an early age. And they start early.

We are invited by the chair of the polling station — a nice old lady, a pensioner and former schoolteacher — for lunch. She is sweet but absolutely insistent. We cannot refuse. First she toasts us with some champagne that is really sweet. She shoves salami sandwiches at us and I gladly eat. One the way out she gives me a big hug and bigger kiss — a truly wonderful grandmother.

We went to the school where my translator works as an English teacher. We waited outside while she voted and then afterwards went inside and observed, By 3pm 1800 of the 3100 precinct voters had already cast their ballots — and the polls do not close until 8pm.

We soon follow a mobile ballot box around to the homes of people too sick to go to the polls. Most of these are very old people who grew up under Stalin — but they still want to practice their democratic right even though many are frail.

We are at our last polling station and reading to watch the count there. It is 7:59 pm and a man comes rushing in … eager to cast his ballot before the polls close. All the polling commission claps their ends and everyone erupts with laughter. The last person in polling station #25 votes.

Determining the market cap of a person

What is a person’s market cap?

Sounds crude, but really — what is the value of a person? Really … what I am asking is … what is the net-present value of a person??

The net present value of a 93-year-old who is worth a billion dollars is probably worth less then a billion (unless, of course, you are Anna Nicole Smith). Whereas the net present value of a smart 23-year-old computer science major in Silicon Valley is a lot higher then her $4000 in savings.

When looking at a person there are growth stocks that are highly volatile and mature stocks that pay dividends. Some people have lots of assets on the books but are stodgy and risk-averse and thus have a low P/E ratio. Other people might have a really high P/E but a really low E.

Henry Ford, before he started Ford Motor Company, was essentially a failure. He tried and failed at numerous businesses. But he still had a high P/E as he was persistent and a good risk.

Obama has a high P/E while Senator Byrd has an extremely low P/E. Some people, like Warren Buffet and Michael Dell and Arnold Schwarzenegger, have had an high P/E ratios all their life — and those are the people you want to invest in.

What makes a person a good investment?

Dare I say it is someone that is ethical? OK … I said it. Ethics matter. You want to invest in someone that isn’t going to sell you out and transfer the funds to the Bahamas.

So does consistency. Erratic behavior causes too much uncertainty. Generally you are looking for someone that stays in the same location for a while, keeps friends for a long time, and has some roots.

Does intelligence matter? Probably not. Joanna Gallanter, one of the top venture capitalists (and Managing Partner at Venture Strategy Partners) likes to say that “smart is like vanilla ice cream.” Meaning — everyone is smart … what else is new? She looks for persistent, driven, honest, hard-working, personable people. And those that have the “leadership gene.”

Something else you might want to look for … loyalty … can make a big difference …

more of this line of thought in the future ….