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Leadership

Leadership

Open Letter to CEOs: Manage Your Interaction With Your Board!

Posted in Inc today

So you’re the new CEO of your own company. You’re living the dream! You’ve thought through the pros and cons of being a CEO and you’ve got your first round of venture capital funding.

This means you also have a board to manage, which can be a minefield for you. So how to navigate the minefield? To begin, you must create a well-organized board meeting. Use my Top 10 tips to run a board meeting as a starting point but once you have the logistics down, it’s all about your behavior and leadership in the room.

One of the most common mistakes I see with new CEOs is thinking they need the board’s approval. You don’t. Your job is to figure out the strategy, what to do and to make good decisions so that your company grows. A board’s job is to support and advise you. Sometimes board members get confused about this and they will believe that they are there to make decisions; however, beyond hiring a new CEO or deciding whether to put more money in, they don’t have that power. If you take their advice and it’s wrong, they’ll still fire you, so the decisions, ultimately, lie with you.

The board needs you because you are the leader, the one who hired your team, the one who holds the strategy and the one with the customer relationships, so replacing you is a major risk for the company (not to mention a major time sink for the board members). The board will judge you on the quality of your decisions, whether or not you follow their advice. If the board loses confidence in you then they will replace you, but up until that moment you are in the driver’s seat and they are there to help you. This is not permission to be arrogant or disrespectful, but understanding this dynamic will help you be a better, more confident CEO. What you need most of all is to gather all of the input and perspective you can from your board, but not decisions.

Here are some questions to ask yourself to ensure your behavior in your board meeting maximizes the result:

1. Are you unconsciously seeking your board’s approval? For example, what do you say when an investor tells you to do something that you believe is wrong? If you are seeking their approval, you will probably validate the idea “that’s a great idea,” but if you are seeking input, then you’ll acknowledge the idea instead by a comment such as “thank you for your input, let me think about it.” Develop a stable of respectful responses that tell your board that you heard them, it’s good input, but you’ll still need to decide.

2. If you are female–is your behavior serious enough? If you giggle, fidget, run your hand through your hair or exhibit any of the “girlish” characteristics, you will be judged and taken less seriously. Unfair, but true. So learn to sit still, don’t fidget, lean forward, take notes (but in a considered way), lower your voice and dress carefully. Imagine how a strong male CEO whom you respect would sit in the meeting- are you conveying the same level of gravitas?

3. Where do you sit? Don’t sit at the front of the room, eagerly presenting all the slides to your teachers. Sit in the middle, or at the head of the table, and host your staff as they present their materials. Sit yourself between the power players, not in service to them.

4. What is your communication between meetings? Again, you are running the company and while some level of update is appropriate between meetings, a running commentary is not. Think about what impression you want to create. The more you communicate the details, the more you invite your board to weigh in with their opinions. Be thoughtful about what, and when, you communicate. You want to be thorough, but that is why there is a board packet. Assume your board members can read.

5. Have you properly prepped your team? It’s worth having a prep meeting with your team to talk through the agenda and what you want to get out of the meeting. Manage their presentations to be crisp and brief (three slides is a good rule of thumb). Use their time wisely and excuse them before the long debates begin, because they have real work to do.

Your board is there to help you. They are not your friends or your teachers. They are investors and representatives of the shareholders who only want you to maximize their return. Up until the time that your company is profitable and/or public, you need their support. Always keep in mind, you are running the company, not the board. It’s worth remembering that in 99 percent of the cases, the board needs you to lead the company more than you need them. If that is not the case for you, then you may be in the wrong job.

Respectfully remember that up until the minute they fire you, your board needs you more than you need them. Remind yourself of this and you will keep your head in the right place during board meetings.

Leadership

5 Pros and Cons of Being CEO of Your Company

Being in the role of CEO can be terrific. You’re it. You’ve gained the power to put your brilliant idea into practice. You’re synonymous with the company for your customers, your employees and your investors. Your family is proud of you. You feel like the sky’s the limit.

And yet, the role is a double-edged sword. If your company is a big public company, you can possibly be looking at $10, $20, $30M+ a year. Or very easily get fired. If it’s one of the handful of $1B unicorns coming out of Silicon Valley, then this time around it’s likely more money than you ever dreamed of. But for most CEOs, the truth is not in the extremes.
It’s in the middle.

So before you decide to be the CEO of the company you want to create, here are a few Pros and Cons to consider first:

1. Pro: You decide the strategy and what’s important. When you are CEO you are ultimately responsible for the strategy: What to build? How to get to market? Where to focus? You get to put your ideas into action and test if they work. Then, when they do succeed, the sense of satisfaction is unbeatable. If you are the technical founder, and command the respect of those people around you, you also won’t have to hear much disagreement. People are following you because they believe in your vision and your strategy.

Con: You’ll work harder than you have ever worked in your life. It’s true not all CEOs are working on overdrive but when you’re trying to get a
company off the ground, there are always more mission critical things you need to do that require more hours than there are in the actual day. Look forward to the necessary red-eye flight you need to take to close a deal. The time pressure will seem worse than your college finals did and prepare for this pace to go on for years. Keeping physically fit with exercise will become a requirement just to survive the exhausting workload.

2. Pro: It’s an ego trip. It’s hard to be CEO unless you have a serious ego. Not that you have to be a jerk, but exuding confidence will ensure that people can look to you to lead them. In that sense, then yes, it’s an ego trip. Which means that, if you are already seriously thinking of becoming the CEO of your startup, then you probably have that necessary ego to both embrace and enjoy it.

Con: You’ll be lonelier than you’ve ever been in your life. That cliche “the buck stops with you” is absolutely true when you are CEO. There is no one to turn to if you have to make a hard decision. Your board is there to give you advice, but they are not going to tell you what to do. Your team is there to provide counsel and debate with you but in the end, they’ll look to you to make the difficult decisions. And there’s no one you can talk to. It’s unfair to burden your friends and family with these work related stresses. It’s you and the wall (or in my case the dog) talking it out sometimes.

3. Pro: You get to hire your team. When you are CEO you get to hand pick your team. You choose the structure of the organization, and hand pick the key people you want to build the company with. You choose the skills, the personality, the experience–and they will seem to become as close to you as your family. Building teams is a wonderful experience–and the best trait of a successful company comes down to the talent.

Con: You’re the one who has to let people go. It’s hard to consistently hire great talent which means sometimes you’ll make mistakes. You’ll hire a VP of Sales who looks and sounds good, but can’t build out a team themselves (think of Yahoo’s spectacular failure recently hiring and then firing of Henrique de Castro). There may also be a time when you may really like an employee but who struggles to consistently perform. When you are the CEO there is no ducking the responsibility of firing the people who have to go, and striving to do it with respect and kindness is an art form.

4. Pro: Customers rely on you to solve their problems. Most great ideas come from trying to solve a problem for someone. In the enterprise world, you’re most likely solving a business problem for another company. You could be putting a critical process in the cloud, so it’s more cost effective, or automating a solution for a time consuming technology problem. It’s a rewarding feeling to know you helped customer’s solve problems and improve their overall business–and of course make money for both of you in the end.

Con: Customers can jerk you around. A former CEO of a software company with $1B in revenue once told me he quit, in the end, because of some of his customers. They’d hold deals until the last day of the quarter, and then force him to drive the price down to get the deal done. After 10 years of building his company and providing solutions for countless customers, he was overwhelmed with the lack of respect his customer’s gave to his business. As you’ll find, this is not always the case and there will be times you are providing value to your customer but professional patience and just ‘sucking it up’ will still be required.

5. Pro: You set the culture for your company. And this many especially appeal to you if you are sick of the Silicon Valley bro culture. Many people spend 8-10 hours a day at work. And all this time should be joyful. Why work for a company, if the culture is not enjoyable? So as CEO, one of the most important responsibilities you have is to set the right culture of the company with the actions you do every day and not just what you say. Great CEOs, like Reed Hastings of Netflix, make this the centerpiece of their leadership. They focus on the areas they believe create a successful company and a positive environment to work, which in turn assists in better recruitment, and increasing their impact with the community.

Con: It’s your company. Well, is that a pro, or a con? You’ll find it depends on the day. Some days you’re so proud of the solutions your team provides that you could burst. But this will not be every day, definitely not every day.

So, if you want to be the CEO of your company then brace yourself. It’s a wonderful experience, and can be a thrilling ride, but it’s a roller coaster with many ups and downs. Maybe write down why you want it before you start, so that on the dark days you can remind yourself why you are doing it. Me? It was about creating a great culture.

Leadership

Venture Capital Is Not All Equal

Like people, VCs come in all styles, so here are 5 characteristics to consider as you interview potential investors.If you want to raise venture capital to fund your new company and your great idea, plan out your vetting process first, because all VCs are not the same. Some are really helpful, but some are horrible and damaging to your company.

  1. Pick someone who has the same Vision and Values as you. You are (hopefully) in your venture because you believe you can change the world (if you are doing it to get rich, stop now, because you don’t get rich in the startup world by trying to get rich, you get rich by building
    something) and it’s very important your investors want you to change the world too. There are many tough moments of truth when building a company, and none more so than when you get an offer for your company before you think you are ready–before you have built the strategy and value that you believe is possible. That moment is when you find out whether your investor truly shared your vision on how to change the world or was just telling you she did.
  2. Pick a partner who can do heavy lifting for you when you need it. Great venture partnerships have a rich, deep network to help you recruit, develop partnerships, find initial customers, manage sticky HR issues and even find office space. Andreessen Horowitz are changing the game with the amount of help they give their ventures. They have teams of people to help you: recruiters, sales people, marketing people and they’ll get you started with office space. Ben Horowitz’ book, “The Hard Thing About Hard Things,” is packed with advice on building a company and is a good example of the type of advice you can get from a great VC who’s built their own company in the past.
  3. Avoid the money-based VC who’s motivated by running a portfolio–often former investment bankers. Find someone who walks the talk and truly builds great companies. If you can, find a VC who has been doing it for more than 10 years and who has a great track record–and interview their CEOs–or find one who’s been a CEO, built a good company and taken it public. When you work with someone from a leading firm like Benchmark, Oak, Sutter Hill, Sequoia, Greylock or the new kids on the block, Andreessen Horowitz (and they’ve been a CEO or a VC for many years), you get access to a level of wisdom and advice that you simply won’t get from the a small firm with relatively inexperienced investors.
  4. Don’t get greedy. Yes, valuation and how much of your company you need to give away is important. But it is just as important that you get great advice and that your management team and employees make money too when you are successful. If you get greedy and aim for the highest valuation, a couple of bad things can happen. First, you can end up with investors who don’t have the experience you need (one of my friends has a Saudi Prince as an investor–very difficult to get alignment on strategy), but second, you can find yourself in a situation with such a high preference and threshold valuation on your company that unless you are the next Facebook, only your investors will make money when you sell (and maybe not even them). There are many hot startups in San Francisco today who will face this problem when they try to get to liquidity. A great VC will coach you through this and not be greedy either.
  5. Pick someone you enjoy being with. Building a company is an intense, emotional experience. Most companies take many years to mature and if you are going to meet with your board every month for 5 years, and at dinners and strategy discussions in between, it certainly makes the
    journey more fun if you enjoy interacting with them. Of course, in the end, you do need to get funded and you may need to take what you can get, but if you have the chance to be selective, the right investor is more important than the highest valuation because you’ll build a better company and change the world (and make more money for you, your team and your investors along the way).
Leadership

The Best Mistake I Ever Made

Asked by a journalist the other day “what is the best mistake you ever made” I had to think for a moment. There are so many – where to begin!

But as I pondered the question, there is one decision I look back on and think “What was I thinking?”

I became CEO of a raw software startup at 36
when my children were 2 and 4 years old. My husband was working long hours
running a small consulting business and I thought I had no limits. I could do
anything, and I wanted to run my own company. I wanted to show that a woman
could run a very technical software company in the semiconductor industry – where
there were no women at the top at all. And I wanted to lead.

Six months in I felt I had made a terrible
mistake. I was totally exhausted every single day. I barely had time to see my
kids in the week and I had bronchitis month after month. I had 2 nannies
working shifts, I gained weight and I would lie in bed awake every night
wondering how I was going to survive, never mind win. I think my marriage only
survived because we had already been married 15 years at that point and my
husband is truly, authentically supportive of my career.

And yet… it was one of the best things I could
have done, and I loved it. I loved being CEO, I loved building a company, a
team and working with customers. I became fast friends with our nannies and my
kids turned out just fine. They are confident, independent and have endless
very funny stories about their crazy mother and the experiences they had
because of my job. They traveled with me all over the world, they went into the
office with me at a young age learning by watching and they have a strong work
ethic as a result of the exposure they had. And we are close, very close.

So was it a mistake? Some days I think I took
a huge risk assuming I could do it all and have it all. But when young women ask me about that decision as they think through their own I’m encouraging. Children are resilient, good men are supportive and while you can’t have it all you can certainly have your fair share.

Image: Alamy

Leadership, My Personal Journey

Me in the New York Times: What Parents Can Teach A CEO

When the New York Times said they wanted to interview me for the CEO Corner I had a series of reactions:”Wow – that’s great!! Fantastic exposure for FirstRain!”

“OMG – what will I say? What if I sound like an idiot?”

“Help! What will I wear?”

Classic girl. Worried about what I’ll wear and what other people will think. Yes, even 54 year old CEOs have the same thoughts you probably have if you are female. But in the end, I’m very pleased with the result… and I wore my favorite dress.

Penny Herscher of FirstRain: What Parents Can Teach a CEO

Leadership

Why being “too aggressive” is a compliment for a leader

Much is being written right now about high performing men and women are described differently in reviews. Kimberly Weisul in Inc calls it an “insane double standard”, and who wrote up the original survey in Fortune points out the old truth professional women know:

Jane – who is a strong female – gets the feedback to be less aggressive whereas Joe – who is a strong male – gets the feedback to be more patient.

In Kieran’s survey a full 71% of women had negative feedback in their critical reviews, vs 2% of men. Why am I not surprised?

I’ve always been characterized as “too aggressive” and “too ambitious” in my reviews. From day one, until the day I became a CEO. Then the very same characteristics were praised – you are aggressive – that’s great!

When I wanted to recruit a world class board member to my board and identified Larry Sonsini (who I did not know) my board said “you’re being too aggressive, you’ll never recruit him” – and then I did. When the IPO market shut down after the dot.com bust and I needed to get my company public many people said “it can’t be done, you should just sell the company” – but I took it public in a very successful IPO in 2001 (with the help of Frank Quattrone and his CSFB banking team – Frank is very, very aggressive). When the financial market cratered in 2008/9 and we decided to pivot FirstRain to the enterprise it took every ounce of aggression and assertiveness to do it – and we did – with the result that FirstRain has significantly higher quality personal business analytics than anyone else because we cut our teeth on hedge fund managers.

For young women wanting to get ahead – especially if they want to be a GM or run their own company one day – I say be aggressive. Be a rebel. Stand up and be noticed – don’t conform. As Cindy Gallop (an original rebel) says you can’t change the world if you are worried about what other people think all the time.

And if you are a rebel, embrace it. There’s an interesting section in Ben Horowitz’ fantastic book The Hard Thing About Hard Things where he talks about When Smart People are Bad Employees. One such type is the Heratic – and two of the three examples he gives are indeed bad for your company. But one, the Rebel, may change the world for as he says “She is fundamentally a rebel. She will not be happy unless she is rebelling; this can be a deep personality trait. Sometimes these people actually make better CEOs than employee.”

I recognized myself when I read that. I am sure I was tough to manage. I am sure I got heaps of critical feedback because I was aggressive, and ambitious, and challenged the status quo every day. But it is those same characteristics that make me a leader and a (reasonably competent) CEO. 

I did have to learn how to be kind with my strong personality though. Early on I was not always aware of the affect I had on other people. But once I figured that out then I let my aggressive personality blossom, and took care of the people who were following me.

So when someone tells you you are too aggressive and you need to tone it down smile and say “thank you” and keep going.

Leadership

5 Keys to Authentic Leadership

From a talk I gave at VMware in Palo Alto earlier this month

Leadership comes in many styles – charismatic, intellectual, bullying – but in all cases leadership is hard to sustain over time unless it is authentic. Real. Genuine. These 5 keys are from a woman’s perspective, but most apply just as much to men.


1. Embrace making decisions. 

Not only embrace them, but have confidence in how you make decisions. I’m a fast, intuitive decision maker. I make a decision on minimal visible information and then use data to check my decision. This means I cannot be afraid to be wrong and change my decision, but I will make it in my head, whether I like it or not.

For a long time, I thought that my method of decision making was in some way bad. Shortcut, or lazy but not a studied, analysis based approach which is what “smart” people do. I doubted myself and did not feel authentic about my own decision making! Until I read the book Blink by Malcolm Gladwell.

As I read Blink I gradually realized that I was not crazy, but my method of decision making is actually very human. We have evolved to make snap decisions on limited amounts of data – some visible to us, some not – and when you can tap into that skill and embrace it is an advantage! But you do need to keep one ear open and keep listening to additional information as it comes in so you can course correct if you need to.

Embrace your decisions and be real about your decision making process. Don’t pretend otherwise – even if you’ve been taught it’s not ladylike to be assertive. If it’s your decision make it; if it’s someone else’s support them. Be direct.  It takes guts to make big decisions, but it’s what leaders do.

2. Don’t ask “whether”, ask “when”

This is an area where men typically differ from women. There are many studies now that show that men will ask for promotion before they are ready, whereas women will wait until they are over qualified to put themselves forward for promotion. I believe, if you have a goal, it’s really important that you communicate that goal out to your leadership confidently. Don’t think about whether you’ll get a promotion or a big opportunity, think about when you’ll get it. Talk with your management about what you want, and ask for their help to get you there.

American Express used this understanding of how women wait to change the demographics at the top of their company. They won the ABI Top Company for Technical Women in 2012 and when Yvonne Schneider accepted the award she spoke of how AmEx proactively trained their male managers to reach down into the organization and ask women to apply for promotions, often before they would have done it naturally themselves. As a result, women moved up into management alongside of men, and the top of AmEx was changed. AmEx didn’t ask whether, they asked when and reached down.

I knew I wanted to be a CEO after I had been working a few years. And being verbal, I talked about it with my network. With the coaches and VCs whom I was getting to know. And as a result I got told all the reasons I was not ready and the education and experience I needed to get to be ready. It was invaluable, and included my company Synopsys sending me to the Stanford Executive MBA to learn about finance and management (since all my formal training was in mathematics). Had I not spoken out about “when I’m a CEO” I would never have got the smack down and been told to learn about running a P&L first, which was the best advice I could have received at the time!


3. Learn to Act As If

You might think that learning to act is in contradiction to being authentic, but I find it’s a part of the process. There are so many situations where I have had to learn to act as if I belong, even though I am the odd man out (so to speak). For many years I went to Japan every 4-6 weeks for business meetings with my customers. In 6 years I was never, ever in a meeting in Japan with another woman. The only women I met were tea ladies. And through that experience I learned to act like a man. I was treated as an honorary male. I learned to drink whiskey late at night in small Osaka bars, and eat food that was still moving, and most of all, never show traditional female traits. That made me effective, and over time my behavior became natural and authentic to me.

And just a few weeks ago I went to a dinner in Palo Alto for 100 CEOs and I was the only woman in the room. By now I’ve learned to “act as if”. As if it’s not odd being alone in a crowded room and relax. That allows me to be authentic in the moment.

4. Balance is a myth

I’ve written and spoken about this many times here and here. I spoke about it again at VMware. We’re in a competitive industry. We’re competing on a global scale. It’s important to decide what matters to you at any point in time, and focus on that. Balance doesn’t win intense market share fights or create dramatic innovation. 

And sometimes you just have to let go and be human. Like the time my son broke his arm on the last day of the quarter. This story always gets a laugh… because it’s true!

5. Laughter is the best weapon

Gender discrimination is all around us, all the time. Some days I think it’s getting better, some days when I see the games being played in the San Francisco tech startup world I think nothing’s changed, but my approach remains the same: when it happens to you keep a sense of humor. It’s hard for men to discriminate if you are humorous in your response, and it help you keep your head on straight and not get mad.

One day, when I was a CEO, I was at the beginning of a meeting with a group of investment bankers who did not yet know my company. We had not yet introduced ourselves and one of the group knocked over a diet Coke. Without missing a beat the banker turned to me and said “sweetie can you clean that up?” I smiled, went to kitchen for paper towel, came back, cleaned up, went and washed my hands, came back, reached out my hand to the banker and with a big smile said “Hello, my name is Penny, I am the CEO”.

One evening, I was at a dinner with people I did not know, at a table of men. During dinner I felt a hand on my knee, creeping under my napkin suggestively. I leaned towards the man whose hand it was, gave him a big smile, lifted his hand up and put it back on his lap and said “no thankyou”.

I have a thousand stories like that, and I have found humor defuses almost any situation. Especially if you are a leader in the group. If someone discriminates against you it is rare that it is overtly intentional. And if you can, try to work with men who have wives who work or daughters. Your humor will make them catch themselves and think about what they are doing.

In the end effective, authentic leadership is all about results. Being authentic means you are focused on the real, the now and reaching the end in mind. You don’t get caught up in what people think about you – instead you try to be your most complete self in the moment – and so be effective.

Leadership

How Your CEO Is Part of Your Brand Marketing Whether You Like It or Not

Posted in the Huffington Post earlier today

We’re living in a transparent world today. Everything your write or
share online is public and you cannot hide. Anything you say outside (or
in) the privacy of your home can be recorded. Anything you do can be
video taped and posted on YouTube.

But somehow executives can
forget this–and more now than ever before the CEO is indistinguishable
from the brand of the company. If the recent uproar over the Clippers’ Donald Sterling, Mozilla’s Brendan Eich and RadiumOne’s Gurbaksh Chahal
has taught us anything (besides that it doesn’t pay to be hateful or
beat up your girlfriend), it’s that, in this age of social media, the
world sees the CEO as a key element of the brand, with the associated
advantage and liability.

In a recent article about Target’s
dismissal of it’s CEO, Gregg Steinhafel, writer George Bradt wrote that
“any of you doubting the importance of your brand in this age of
complete transparency should take a look at what’s going on at Target…
Steinhafel has not done the job he needed to do as brand steward.”
Unlike the CEOs I previously mentioned, Steinhafel’s personal beliefs
or actions didn’t cause a scandal–but his point that the CEO is the
“brand steward” resonates across every industry. Starbucks’ Howard
Schultz and Zappos’ Tony Hsieh pioneered this to the positive as
social media first emerged.

Companies need to differentiate
themselves from their competitors and establish their brand as
representing something special. In tech, where innovation and brainpower
are the driving currency, companies and their CEOs work hard to
establish themselves as thought leaders on the industry they are
serving. This means that the CEO has become hyper-visible; he tweets,
goes on TV, writes blogs, posts on Facebook and speaks at events. While
that is certainly by design, hyper-visibility curries a public
fascination with all aspects of their lives — just look at celebrities.
And with this “age of complete transparency” being what it is,
anything, whether a recorded off-color remark or a campaign donation,
can be shared and seen by millions in a matter of hours.

So what
does that mean for your company’s CEO? Even though the argument rages on
about whether it’s right that her private life should have any effect
on her qualifications in business, it is abundantly clear that it does
make a difference to the brand. The new CEO may have a successful
business history and a visionary mind, but if customers mistrust her,
they will be less likely to use the products, or do business with the
company — and sales will fall.

But in contrast to the CEOs whose
actions and exposure hurt the company, some CEOs are harnessing the
power of their pulpit to be a force for good, and strengthen the brand
of their company at the same time. In the midst of the social unrest in
San Francisco, brought about by tech boom and subsequent rapid increase
in rent (and evictions), Marc Benioff has been leading San Francisco
tech companies to donate $10 million to SF Gives
and help fight poverty in the city by the Bay–and in doing so he has
reminded the world of the strong role philanthropy plays in Salesforce’s culture and brand.

So
good or bad, whether we think it’s fair or not, our new world of 24/7
transparency and social media has thrust CEOs into the public eye and
made them an integral part of their company’s brand. Their actions,
their political beliefs, and if they are even slightly careless, their
behaviors in their private lives, have consequences for their business.
Something every brand manager, and CEO, must remember.

Equality, Leadership

Three things you can do to hire women and change your company forever

Posted in the Huffington Post

Our world is changing very fast, and the role of women is changing
fast with it — and, mostly, for the positive. We have more women in
power, more women in the workforce, more women in control of their lives
but there still aren’t representative numbers of women at the top of
companies.

And yet, we now know that diverse teams make better decisions. We know women make 85 percent of consumer
buying decisions, and so, if you sell anything to them, you probably
want women in your decision structure. As a CEO, if you’re making
strategy decisions, and hiring decisions, you want a diverse set of
opinions around you to advise you. It’s time to pro-actively bring women into your workforce.

So
why would any company build an all-male leadership team now, or an all
male board, or a board that is mostly male with one token female? The
most often-cited reason is that there are no qualified candidates —
what baloney! When Twitter filed for its IPO with no women on the board
(despite the dominance of women on social media) the reason given was:
“The issue isn’t the intention, the issue is just the paucity of
candidates.”

It’s just not the truth (as the NYT kindly pointed out
to Twitter at the time). There are women available to hire, but you
have to be determined to build a diverse leadership team to make it
happen because the easier path (less work) is to hire people just like
you: men. You have to be willing to do the extra work, find the diverse
candidates, and open up your job spec to change your company for the
future — and for the better. It’s just good business.

Here are three roles where you can change the numbers:

Board of Directors: Mostly male still. Women hold only 16.9 percent of board seats,
10 percent of boards have no women on them and those numbers are barely
changing. If, as many boards do, you set your search criteria
narrowly… for example, must have been a CEO (that cuts most women
out), must have prior board experience (that cuts most women out), must
be retired (the women in the workforce are newer and so less likely to
be retired) then, presto! all you see are male candidates.

The
solution here is to open your search up to operating executives who are
not CEOs. They are in related industries in powerful operating positions
like CIO, GM or CFO and probably have no prior board experience. But
everyone starts somewhere, and there are excellent training programs you
can go to to learn how to be a public company director.

Software Engineers: Mostly male still. And with hiring practices like the “Bromance Chamber
at DropBox not surprisingly! Twenty percent of CS majors are girls, and
the best technology companies (Google, Facebook, Microsoft, Intel et
al) both compete to hire them and invest in programs like the Anita Borg Institute
to learn how to both recruit them, and retain them. But the best
companies also reach outside the rigid spec of pure computer science.

Again
the solution is to be open to a wider set of candidates, without
compromising quality. Open up to girls (and boys) with math majors, or
double majors in math and computer science — those who wouldn’t make it
through the narrow filter of typical CS hiring processes, but who are
likely smarter, harder working, and need just a small amount of training
to be fully effective for your company. Facebook even runs a summer
intern program for students without technical degrees, knowing they can
train them and wanting the very best brains for their engineering teams.

Sales People:
Mostly (white) male still. A lingering bastion of the smart,
golf-playing male in a crisp white shirt. When challenged on the limited
number of female candidates being presented, most recruiters will whine
and complain about the limited pool.

The solution: Deliberately
ask your recruiter to do the extra work to find the diverse candidates.
At my company our sales recruiter did, and we found excellent female
candidates immediately. It’s been my experience that women sell just as
well as men, so why not get a mixed team in place so you see the selling
challenges from more than one perspective?

In all these cases,
you are not trying to hire women. I’d never compromise the quality of
the hire for race or gender. Many women would (quite rightly) be
offended if they thought they were only being hired because of their
gender. What you are doing is insisting on a diverse candidate pool and a
level playing field for those candidates. And, in my experience, that
leads to stronger candidates, to gender balanced teams and, as a result,
to better decisions.

At my own company, FirstRain,
where I am CEO, our board is 50 percent women. My senior leadership
team is half men, half women. That’s no accident. If you are determined
to see diverse candidates you will — and have absolutely no compromise
on quality — quite the reverse!

Leadership

Why CMOs won’t lock CIOs out of the C-suite

Published in the Economist today

Money talks. It’s common knowledge that people with money tend to get what they want, and today’s business dynamics are no different. A new Accenture study shows that CMOs are claiming more of the tech budget share. Much to the chagrin of CIOs, it is coming out of the IT purse.

Regardless of how much injustice CIOs feel, the success of their companies is increasingly reliant on their teams learning to align with CMO teams whose priorities—and very nature—are incredibly different from their own.

CIOs and IT professionals are, of course, very good at evaluating and implementing complex software processes. They have been doing that for CFOs forever, which is one of the main reasons they are not going to be rolled under the marketing umbrella anytime soon.

Despite the fact that marketing professionals have tended to see IT as more of a support organization, they now need the CIO for the same reason finance always has: they need the technical expertise to help them choose the right system and then implement it. So, rather than have the CIO report to the CMO, they need to work together in a true partnership to make sure that they get the right sales support technology for their businesses.

But how will that work? Beyond the inherently differing priorities of the CIO and the CMO (case in point: protecting data vs. using data), IT people and marketers are two very different breeds. So we find ourselves with yet another example of why diversity is so important in today’s environment. Marketing, as we have already discussed, is becoming increasingly digital, so the “creative types” will need to learn to work with the more technical staff, and the “math nerds” will have to figure out how to deal with people whose main concern is responding to the capriciousness of public interest.

There is no doomsday on the horizon for CIOs. CMOs need them just as much as ever because the systems that marketers want and need are technologically sophisticated. Just because they are in the cloud doesn’t mean that creative types know how to buy them and run them. In order for a business to be successful, both teams are going to have to come to an agreement on what is important and adapt to achieve their goals—together.