Nonviolent communication and the concept of “denial of responsibility”

nvc_book

One of the most important books ever written is Nonviolent Communication: A Language of Life by Dr. Marshall Rosenberg. Microsoft CEO Satya Nadella reportedly gave the book to his team and made them read it when he took over as CEO in 2014 — an admirable leadership move and a serious statement on the kind of culture he wanted to enforce at Microsoft. I’m certain that the concept of nonviolent communication (often referred to as NVC) has contributed to their incredible success since then. I saw a great example of nonviolent CEO communication today and wanted to call it out — but first a little background.

One category of violent communication (“violent communication” being defined as “communication that blocks compassion”) is “denial of responsibility.”  It’s described this way in the book:

Another kind of life-alienating communication is denial of responsibility. Communication is life-alienating when it clouds our awareness that we are each responsible for our own thoughts, feelings, and actions. The use of the common expression have to, as in “There are some things you have to do, whether you like it or not,” illustrates how personal responsibility for our actions can be obscured in speech. The phrase makes one feel, as in “You make me feel guilty,” is another example of how language facilitates denial of personal responsibility for our own feelings and thoughts.

In her book Eichmann in Jerusalem, which documents the war crimes trial of Nazi officer Adolf Eichmann, Hannah Arendt quotes Eichmann saying that he and his fellow officers had their own name for the responsibility-denying language they used. They called it Amtssprache, loosely translated into English as “office talk” or “bureaucratese.” For example, if asked why they took a certain action, the response would be, “I had to.” If asked why they “had to,” the answer would be, “Superiors’ orders.” “Company policy.” “It was the law.”  We deny responsibility for our actions when we attribute their cause to factors outside ourselves:

* Vague, impersonal forces—“I cleaned my room because I had to.”

* Our condition, diagnosis, or personal or psychological history—“I drink because I am an alcoholic.

* The actions of others—“I hit my child because he ran into the street.

* The dictates of authority—“I lied to the client because the boss told me to.

* Group pressure—“I started smoking because all my friends did.

* Institutional policies, rules, and regulations—“I have to suspend you for this infraction because it’s the school policy.

* Gender roles, social roles, or age roles—”I hate going to work, but I do it because I am a husband and a father.

* Uncontrollable impulses—“I was overcome by my urge to eat the candy bar.

We have all seen this type of communication. We are so used to these kinds of “denial of responsibility” statements from our leaders that we no longer see them as the violent language that they are. This type of language is rife in our culture and I’m unfortunately sure that I’ve used it myself. But I think positive examples are worth calling out, and Twilio CEO Jeff Lawson’s tweet today and the post it links to fits the bill:

Twilio is a publicly-traded company so Jeff has substantial responsibilities as a CEO. It is not an easy job (take it from me). But Jeff is also an actual person (and from spending some time with Jeff and following his career, I put him squarely in the “good person” category). It would be really easy for Jeff to say that he doesn’t comment on politics because he’s the CEO of a public company — and many do. He could say he’s not sure of the political views of his shareholders so he will remain silent out of deference to them. He could say he won’t speak out unless he has a “business case” for speaking out (and this Wall St. Journal columnists argues just that: “You’re a CEO: Stop Talking Like a Political Activist.“) These all follow the pattern of “denial of responsibility” described by Rosenberg. In doing all of those things, Jeff would be denying his responsibility as a person and a citizen.

But Jeff didn’t follow the “denial of responsibility” pattern and I applaud him for speaking his mind clearly and directly. I think Jeff’s post is a great example of nonviolent communication in action by actively avoiding the “denial of responsibility” traps that are really easy for CEOs to fall into, especially public company ones:

  • Vague, impersonal forces—“the markets might react poorly.”
  • The dictates of authority—“My shareholders wouldn’t like it.
  • Institutional policies, rules, and regulations—“I can’t say anything because public company CEOs don’t talk about politics without a business case
  • Gender roles, social roles, or age roles (I’m defining “CEO as a ‘social role’ here)—”I wish I could say something, but I’m a public company CEO.

Thanks for your leadership, Jeff, and for stepping out into the truth. We can all learn from your example.

Solitude and leadership

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Lincoln alone, writing the Emancipation Proclamation (source)

One of my favorite talks is “Solitude and Leadership” by William Deresiewicz in a lecture that was delivered at the United States Military Academy at West Point in October 2009. It’s about the critical and often overlooked link between solitude and leadership. We tend to think of leaders when they are “in the arena” or practicing “management by walking around” but not as much about the necessity for leaders to spend time sitting alone, thinking and reflecting.

The transcript of the talk is worth reading in its entirety but I pulled a few quotes below to give you a flavor:

My title must seem like a contradiction. What can solitude have to do with leadership? Solitude means being alone, and leadership necessitates the presence of others—the people you’re leading. When we think about leadership in American history we are likely to think of Washington, at the head of an army, or Lincoln, at the head of a nation, or King, at the head of a movement—people with multitudes behind them, looking to them for direction. And when we think of solitude, we are apt to think of Thoreau, a man alone in the woods, keeping a journal and communing with nature in silence.

Leadership is what you are here to learn—the qualities of character and mind that will make you fit to command a platoon, and beyond that, perhaps, a company, a battalion, or, if you leave the military, a corporation, a foundation, a department of government. Solitude is what you have the least of here, especially as plebes. You don’t even have privacy, the opportunity simply to be physically alone, never mind solitude, the ability to be alone with your thoughts. And yet I submit to you that solitude is one of the most important necessities of true leadership. This lecture will be an attempt to explain why.

. . . . .

We have a crisis of leadership in America because our overwhelming power and wealth, earned under earlier generations of leaders, made us complacent, and for too long we have been training leaders who only know how to keep the routine going. Who can answer questions, but don’t know how to ask them. Who can fulfill goals, but don’t know how to set them. Who think about how to get things done, but not whether they’re worth doing in the first place. What we have now are the greatest technocrats the world has ever seen, people who have been trained to be incredibly good at one specific thing, but who have no interest in anything beyond their area of exper­tise. What we don’t have are leaders.

What we don’t have, in other words, are thinkers. People who can think for themselves. People who can formulate a new direction: for the country, for a corporation or a college, for the Army—a new way of doing things, a new way of looking at things. People, in other words, with vision.

. . . .

Thinking means concentrating on one thing long enough to develop an idea about it. Not learning other people’s ideas, or memorizing a body of information, however much those may sometimes be useful. Developing your own ideas. In short, thinking for yourself. You simply cannot do that in bursts of 20 seconds at a time, constantly interrupted by Facebook messages or Twitter tweets, or fiddling with your iPod, or watching something on YouTube.

. . . . .

You can just as easily consider this lecture to be about concentration as about solitude. Think about what the word means. It means gathering yourself together into a single point rather than letting yourself be dispersed everywhere into a cloud of electronic and social input. It seems to me that Facebook and Twitter and YouTube—and just so you don’t think this is a generational thing, TV and radio and magazines and even newspapers, too—are all ultimately just an elaborate excuse to run away from yourself. To avoid the difficult and troubling questions that being human throws in your way. Am I doing the right thing with my life? Do I believe the things I was taught as a child? What do the words I live by—words like duty, honor, and country—really mean? Am I happy?

. . . .

it’s perfectly natural to have doubts, or questions, or even just difficulties. The question is, what do you do with them? Do you suppress them, do you distract yourself from them, do you pretend they don’t exist? Or do you confront them directly, honestly, courageously? If you decide to do so, you will find that the answers to these dilemmas are not to be found on Twitter or Comedy Central or even in The New York Times. They can only be found within—without distractions, without peer pressure, in solitude.

. . . .

Thinking for yourself means finding yourself, finding your own reality. Here’s the other problem with Facebook and Twitter and even The New York Times. When you expose yourself to those things, especially in the constant way that people do now—older people as well as younger people—you are continuously bombarding yourself with a stream of other people’s thoughts. You are marinating yourself in the conventional wisdom. In other people’s reality: for others, not for yourself. You are creating a cacophony in which it is impossible to hear your own voice, whether it’s yourself you’re thinking about or anything else. That’s what Emerson meant when he said that “he who should inspire and lead his race must be defended from travelling with the souls of other men, from living, breathing, reading, and writing in the daily, time-worn yoke of their opinions.” Notice that he uses the word lead. Leadership means finding a new direction, not simply putting yourself at the front of the herd that’s heading toward the cliff.

. . . .

I started by noting that solitude and leadership would seem to be contradictory things. But it seems to me that solitude is the very essence of leadership. The position of the leader is ultimately an intensely solitary, even intensely lonely one. However many people you may consult, you are the one who has to make the hard decisions. And at such moments, all you really have is yourself.

Again, here’s the link to the full speech.

Technology, Craft, and Local Economies

John Chaffee (bio) invited to be the keynote speaker on Tuesday at the annual meeting of the NC East Alliance, a non-profit organization that helps drive economic development in eastern North Carolina, which is basically the area between Raleigh and the coast. That area is also where I grew up, specifically in Greenville. The title of my talk was “Technology, Craft, and Local Economies” and my goal was to bring some ideas that might be helpful to the folks in my hometown building their next-generation economy. The slides are here and I’ve included slide-by-slide notes below (just scroll down) so you can follow the storyline. I got really positive feedback on the talk (see a couple of nice comments on twitter: 1, 2) so I’m posting my notes here since I’m hoping it could be helpful to other people building local economies outside of the places that get all the attention like NYC and the Bay Area.

To get the most out of the presentation, it’s important to understand my relationship to the place where I was presenting. I went to public schools there from K-12, graduating with many of the same people in my kindergarten class. When I graduated from high school, I hadn’t yet flown on an airplane and my only international travel consisted of a quick excursion for a few hours over the border to Juarez, Mexico and a few days in Canada, both on family road trips (I tweeted about how remarkable it felt to fly into Greenville — my hometown! — for the first time in my life earlier this week.) But my life after that was a crazy rocket ship in every way, with millions of miles of travel, building products and companies that people love, meetings at the White House, and all kinds of things I never would have imagined. It’s been a truly amazing ride since that kid who had never been on a plane left town to go out into the world in 1990.

I think a lot about the intense cultural divides we have in the US and the world today. However you describe it — red/blue, city/country, or “coastal elite”/heartland — I’ve got a lot of experience living in either culture. I’ve learned a lot in the past 20 years working in SF/Silicon Valley and in New York City and wanted to share some perspective from those life-changing experiences but also wanted to share with a sense of respect for where I come from.

My talk was at the end of the event and as I listened to the speakers before me (all from the region), I added one slide to my presentation on the fly about the concept of risk (see slide 80). So much of what we talk about is physical infrastructure — airports, broadband, highways — but how a culture thinks about risk is incredibly important. It’s almost a cliche but it’s true: you have to be willing to fail and try again. The culture around risk-taking is baked into how kids are raised, educated, and encouraged (or discouraged). It’s important for any region to build a culture of risk that is aligned with the rewards they seek. On a basic level, it’s about defaulting to “how do we do X?” not “X will never work” or “we tried X before and didn’t work.”

The trip was a good reminder that we can all learn a lot from each other. I was really impressed with what the people in my hometown and the surrounding region were doing to push the economy forward there. I mean, it’s really great to start a craft brewery in a place like Portland or Brooklyn but developing an entire ecosystem of craft brewing in eastern North Carolina, from four such places in 2010 to 27 today? Kind of unbelievable. North Carolina has a really complex history as it relates to alcohol and was one of the states that voted against the 21st Amendment that repealed prohibition. When I was growing up, seeing people in my family’s social circles drink at all was incredibly rare.

IMG_8014

This was all very interesting to ponder after my talk while drinking some Pactolus Light Lager (named after a famous local ghost story from my youth) along with a few other styles at Pitt Street Brewing Company, a new microbrewery a few doors down from the site of the barber shop where I got my hair cut as a kid. I’m admittedly a bit of a beer snob and I’ll say with confidence that the beer I had there stood up to the beers I’ve had in places like Brooklyn, Portland, and San Francisco. Big thumbs up.

Without further ado, the slide notes are below. If anyone finds anything of interest in this presentation and/or wants to tell me about some of the successes where you live, my email is hello plus chaddickerson.com. Thanks again to John Chaffee and the NC East Alliance for inviting me to speak.

Slide-by-slide notes

(here are the slides again)

1 – (Title slide)

2 – It’s good to be back where i learned about hard work. My brother and I had a big lawn mowing business when we were kids. I think we had 25 or so lawns at our peak. Dad taught me about business. In particular I remember a lesson about interest.

We asked my dad if he would buy us a riding lawnmower so we could scale up our business and mow more lawns. He said he couldn’t buy it for us but he would loan us the money. He loaned us money via his Sears credit card and told me he would do it for something like “prime + 8.” (can’t remember the exact number) Prime rate was about 12% in 1984! He set up a payment schedule and we paid him back with the proceeds from the business. It was a good lesson about investing for growth. 

3 – I graduated from DH Conley High School and went to my senior prom in this building. I’m really glad to have my English teacher here today, Ms. Jena Kerns. I wish Mrs. Tripp was here. She was my calculus teacher and gave me my worst grade in high school. If she was here, I would tell her that I think things turned out ok for me!

4 – The News & Observer (N&O) in Raleigh was my first job. Here’s the Raleigh skyline. I had just graduated with an English degree from Duke and took a low-paying clerical job there. It happened to be around the department where they were building web sites. You might not realize it but the N&O was the first daily newspaper on the web in the United States back in late 1993, early 1994.

5 – After a few years in Atlanta working for CNN and the Atlanta Journal-Constitution (another newspaper), I headed to the west coast in 1998 and spent ten years there, living through the first Internet boom and bust in the late 90s / early 2000s

6 – And then I got a call from a nascent crafts marketplace in Brooklyn. . . .

7 – . . . called Etsy. I was CTO there for three years and CEO for six. We took the company public in 2015. In that first three years, I and the team I assembled built the technology platform that helped Etsy scale to where it is today. From the time I walked in the door until the time I left, revenue grew about 50x and the company went from a chaotic startup to a billion dollar publicly-traded company. I learned a lot in that arc and some of that is what I’ll talk about today.

8 –  This talk is about technology, craft, and local economics and I want to start with technology. Our lives are moving faster than ever.

9 – The web was adopted faster than any technology in history and the web as we knew it was significantly disrupted over the past decade with the rise of mobile.

10 – The iPhone was only announced in 2007 and just in the past nine years, the use of the web has migrated to something we carry in our pockets.

11 – Some say we are in the middle of a fourth industrial revolution, one that affects our daily lives more than ever, not just work.

If you think this sounds overblown, just look at some of the things happening around us today that affect our daily lives.

12 – In one generation, we’ve gone from this clunky and not that powerful computer on a desktop:

13 – To incredibly powerful computers we put in our pocket. The latest iPhone has 1000 times the processing power of the Apollo Guidance Computer that landed people on the moon.

(Source: https://pages.experts-exchange.com/processing-power-compared)

14 – we’re now going beyond the supercomputers in our pockets to supercomputers that we wear, and this has even more implications for our lives. This device has saved lives — just Google “apple watch saved lives” and you’ll see many stories.

This fourth industrial revolution isn’t just about wearable computers. We’re seeing even more fundamental changes in where technology, biology, and the physical world meet.

15 – This is a plant-based product that is being engineered to cook and taste like beef. CEO said: “We want to have a product that a burger lover would say is better than any burger they’ve ever had.” In the natural world, cows eat grass and synthesize it into meat.

They and other companies are using artificial intelligence and sophisticated machine learning techniques to replicate what the cow does without the environmental damage of raising livestock and without the cholesterol and saturated fat in conventional meat. This sounds like science fiction but it is happening right now and being served by chefs in top restaurants around the country. The company has secured almost $400 million in funding and say they’re working on poultry and steak.

16 – This fourth industrial revolution isn’t just about what we eat, though. We’re reimagining fuel, healthcare, and many other things.

17 – This can be a little bewildering and feel like things are moving too fast.

One of the things I learned in high school at DH Conley is Newton’s Third Law: For every action, there is an equal and opposite reaction. That means the faster things go, the stronger the desire is to slow things down, to make things simple again.

18 – (no notes)

19 – In my nine years at Etsy, I saw this first hand. The goods sold on Etsy are mostly by small makers, many using time-honored techniques that existed hundreds, even thousands, of years ago. But the scope and scale of Etsy could only happen on the Internet. But it’s an Internet platform that capitalizes on simple traditions your grandparents and great grandparents would recognize.

20 – In the age of fast, younger generations have taken up crafts like knitting in huge numbers.

21 – farmers markets are more popular than ever

22 – food trucks are everywhere and provide an incredible amount of uniqueness and diversity in the food we eat.

23 – And it may surprise you, but young people are making their own butter again! For decades, you, your parents, and grandparents have been trying to step away from this kind of drudgery, right?

So, on the one hand, you have companies synthesizing meat without livestock and on the other, you have young people deciding to make their own butter again when you can buy a perfectly good stick of butter for $1 at any grocery store.

24 – How does this all fit together and make sense? What’s going on here? This can seem like a paradox but fast and slow actually feed off of each other. I’m going to talk through three particular forces that are combining to create this new reality. When there is great change, there is opportunity but you have to understand the underlying forces to be able to capitalize on the change.

25 – (no notes)

26 – the first. . .the rise of millennials

27 – Who are the millennials?

28 – they use their phones for everything and the most important thing is retail. Commodity retail will fully move to Amazon. There is no incentive to go to a store, pay more, and go through the hassle of buying toilet paper, toothpaste, detergent, etc. Outside of commodity purchasing, what will millennials be doing with their money?

29 – this orientation isn’t going to change or age out – this is a product of the new Internet economy and a fundamental realignment of how this generation views the world.

Remember the butter churning? When you think of millennials making butter as an experience instead of simply producing a good, it all makes a lot more sense.

30 – It’s also important to understand how work is changing. The habits of millennials are accelerating changes in the nature of work itself. To put it simply, you can learn anything anywhere and increasingly do high-paying work from anywhere.

31 – Freelancers will be the majority of the workforce by 2027. Economic development efforts have to take this trend into account.

32 – Millennials are leading this trend.

33 – I looked at two of the hottest areas in computer science right now and anyone with a broadband connection can get the best education on the most cutting-edge topics for free. You can learn about Bitcoin and cryptocurrency from a Princeton professor

34 – and machine learning from Stanford

35 – and it’s not just universities putting their services online. Entirely new products like Codecademy are in place to deliver education for high-paying jobs. This $80K average might seem crazy for someone who has “only” mastered an online course but I’ve hired hundreds of self-taught engineers at higher salaries. I’m standing here today because I taught myself how to code on the Internet 25 years ago. It’s way easier now.

36 –  and it’s not just coding. You can learn architecture from the best architects in the world like Frank Gehry

37 – or how to make beer

38 – or how to start a shop on Etsy

39 – All of the infrastructure to build a massive digital business exists today — it’s not a “wave of the future” thing. It’s literally your brain plus hundreds or thousands of dollars to get started in a very real way. The risks have never been lower. I personally know many people who have built companies worth hundreds of millions or billions of dollars and it all started using these services. This is why broadband is important. With a high-speed Internet connection, you have the exact same access to tools as someone in NY or Silicon Valley. Literally zero difference.

So it’s easier than ever to start a business. Not everyone is going to start their own business, though, so it’s important to understand that employment is changing, too.

40 – More companies are location-less. They don’t have a HQ. If you’re trying to bring business to a specific area, what does it mean when a company isn’t formally located anywhere? With more freelancers and more distributed workforces, all of our traditional assumptions about building local economies are challenged.

41 – Technology makes it possible to both buy anything and start a business from anywhere. Many of the next generation of companies will not even have offices. This is not science fiction. It’s happening right now.

42 – One example is Automattic. Their software WordPress powers 30% of world’s web sites. You probably used their software today.

43 – These are not insignificant companies.

44 – Another is Invision

45 – again, this is a very serious company with an amazing customer list

46 – This is a quintessential millennial employment message. They’re not selling you to move to work with them, they’re selling that you can live anywhere to work for them.

(BONUS: As a side note, there is huge demand for great designers in the tech industry, almost equal to software developers. In the rush to focus on STEM, don’t forget the designers. As Internet has gone mainstream, it’s more important to make products usable!)

47 – So, many of the next generation of companies may not even have offices. The question becomes: how do I get these people, many of whom are really well-paid, to live in my community? There’s one trend where local culture, local flavor, and local influence win. 

48 – I call this market “craft business,” and it’s booming. When I use the word “craft,” I mean goods and experiences based on uniqueness and taking advantage of all the modern tools I mentioned a few moments ago.

49 – Etsy is a great example of the power of “craft business.”

50 – I decided to take a few minutes (and it was only a few minutes) to find some businesses here in Greenville, NC that are thriving on Etsy. It didn’t take long.

Thomas and Meghan have 27,188 sales in this shop selling jewelry and two other shops on Etsy selling candles and craft supplies. He quit his full-time job two years ago to run his Etsy shop with Meghan, who designs the jewelry. Looking at his general price point and number of sales, this business is grossing hundreds of thousands of dollars. And this is one of three shops.

51 – I also found Heather’s shop. Heather is 29 year old graphic designer living with her husband, Garrett, and our one and a half year old son, Finn. Listed her first item in September 2013 and within a year, had her own full-time business on Etsy as her day job.

People like Heather and Thomas and Meghan often fly under the radar on employment stats. They may not have a physical store front. They may not show up in traditional “small business” government stats. But they are there, and in growing numbers.

52 – Lots of small can add up to big.

53 – But it’s not just Etsy. You see this demand for small/unique in places like beer consumption here in Eastern NC. These slides are copies of John Chaffee’s slides (head of NC East Alliance) from earlier today.

54-55 – (no notes)

56 – So, from 4 to 27 craft breweries here in eastern NC over the past seven years. Growing up here, I couldn’t have imagined this was possible.

57 – But it’s also not surprising because this is part of a global phenomenon. Data point: sales of craft beer exceeded sales of Budweiser for the first time in 2013. 

44% of 21- to 27-year-old drinkers today have never even tried Budweiser. A brand that we all knew as the “king of beers” is not only losing market share, it is borderline meaningless to its new generation of customers. This is stunning and it’s happening with many consumer brands that were once thought to be unassailable.

58 – and it’s not just physical goods like crafts and beer. It’s services like hospitality as represented via Airbnb. And, like Etsy and craft beer, it’s happening right here in Greenville, just a little under the radar. I now have more choices of places to stay when I visit.

59 – Airbnb has tapped into the entrepreneurial spirit of homeowners while also satisfying the desire to have a unique experience when you travel (again, remember the importance of experience to millennials). I’ve rented Airbnbs in Montreal and San Francisco and each time, it was less expensive than a hotel room but also a better experience as I was able to live in the local community during my time there. (And, yes, it feels a little ironic saying this on stage at a Hilton!)

60 – Etsy, beer, hospitality, and also food. Small is outperforming big and many of the brands that we consider iconic American brands are becoming meaningless — just like Budweiser — to a new generation.

I was pleased to see that there are nascent efforts here in eastern NC like the Eastern North Carolina Food Commercialization Center (google it) to participate in this food renaissance. As a place with deep agricultural roots, I can think of nothing more promising.

61 – (no notes)

62 – I wanted to close with a few final thoughts on what this might mean for local economies.

63 – First, it just might be healthier to create the conditions for a lot of smaller enterprises than to chase the one big employer.

64 – Case in point: the MillerCoors plant in Eden, NC was a critical part of the community for decades. When global parent company Anheuser merged with InBev, consolidation meant “efficiencies” which meant hundreds of people losing their jobs, which left a big hole in the town.

65 – If you look west at Asheville, though, there’s a microbrewery boom and it is has become a destination for beer drinkers all over the world. 30 craft breweries and related businesses there employed 660 full time people plus 280 part-timers. Many of those brewers have formally committed to a living wage. They may not pay as much as the union jobs in Eden did but people are able to make a living and provide for their families. And if one of the 30 closes, there are 29 others. This is more sustainable and resilient.

66 – (no notes)

67 – Traditional office space tends to look like this — not very exciting or inspiring.

68 – I mentioned WeWork before as one of the tools out there that makes it easy to start companies. You can walk in and get an office the same day with a simple month-to-month lease. Great wifi, great coffee, and a community of people like you. This matters to the growing generation of freelancers.

69 – This is WeWork in Philadelphia. While this may look like people just hanging out, there’s a good chance that each of the people in this photo is pulling down six figures as a software developer, a designer, or a product manager.

70 – And if you think it’s only the youngest generation, here’s a photo of where I work every day in Brooklyn.

71 – the highest speed broadband possible is important. I am so impressed with what Wilson, NC has done in building municipal broadband — a town smaller than Greenville. They have shown that anyone can do this. When I went to the historic FCC hearing to speak about net neutrality in Feb 2015, I was just as excited to run into the team from Wilson there advocating for municipal broadband.

72 – Assume the businesses starting in eastern NC are global from day one

73 – Etsy started in 2005 and the first international sale was on the same day. People starting businesses on Etsy and other platforms can sell to the world from day one and know how to do it.

74 – You can also market a product anywhere in the world using ad platforms like Google AdWords. I spent five minutes creating a hypothetical ad for NC barbecue targeting ex-patriates in London, Paris, and Dublin. I discovered that for $10, I can get 74 clicks and 10,000 impressions on keywords like barbecue, nc barbecue, and pulled pork. With a little more work, I could determine if this acquisition model would support and scale a business.

75 – launching an ad campaign used to mean meeting with multiple sales people in TV, radio, newspapers, and magazines. Now you can buy ads with a credit card and launch to the world in 5 minutes, targeting down to the zip code and paying only for people who click on your ad. This is absolutely transformative.

76 – if I need to hire people outside my local area to stay in constant communication with them to build the business, I can set up a Slack channel and video conference with anyone in the world to make anything happen

77 – millennials want unique food, art, culture. In a world where the largest cohort of consumers want unique experiences, the biggest advantage you have is your local culture. You can’t re-create another city. Don’t try to replicate Silicon Valley. You have to lead with your local culture.

78 – I’m really happy to see Greenville undertaking efforts like Uptown Greenville to recognize the need for a more experiential way of living with integrated housing, shopping, and the arts.

79 – and the efforts of East Carolina University to work with municipalities like Farmville [back when Farmville was a big online game, I always thought back to the actual place – CD] to reclaim this gas station to become a glass-blowing facility (love the name “GlasStation”!)

80 – But local culture is also about risk and that’s not an infrastructure thing. It’s a mental thing. The main difference between Silicon Valley and everywhere else is appetite for risk. People try and fail all the time. Lots of “how do we do that?” without a lot of “that will never work.” In SV, it’s generally accepted that 9 out of 10 investments will fail. 90%! But the 10% that work are often world-changing. It’s the part of the culture and working there that was really life-changing for me. The biggest critique you’ll get in SV is that you’re not thinking big enough. In addition to everything else I’ve talked about, I urge you to think about risk. It’s reflected in everything from local banking to local politics to education to how you raise your kids. Big rewards require big risk. Do whatever you can to make eastern NC the place where you can take the kinds of risks required to do the big things that move us all forward.

81 – If you can get your head around this contradiction and work it to your advantage, the sky’s the limit. It’s exciting to see what y’all are doing to build a next-generation eastern North Carolina and again, I’m really honored to be here in the place where I grew up.

82 – (no notes – the end!)

Words of advice to inside sales people prospecting busy CEOs

If you’re an executive at a company and are in any way accessible, you’re on the receiving end of dozens of email pitches for products and services every week. Most of these come from what are known as “inside sales” people, i.e. sales people who start at the top of the funnel to find qualified leads for the company. They tend to cast their nets really wide and send lots of emails and make lots of phone calls.

Here’s one pitch I got recently:

Hi Chad,

I’ve reached out several times to discuss your [type of software service] initiatives for 2013.

If you have just been busy, and this is something you would like to pursue, I am happy to set some time up based on your availability.
Otherwise I will reach out again in a few months.

Let me know

This particular inside sales person was unusually persistent (this had to be the 5th or 6th email with no new information, just asking for time), and he showed many of the same ineffective patterns that I’ve seen for years. I decided to write him back with some advice. I’m publishing my response on the hope that it will help salespeople produce better pitches (which will thereby reduce the number since they will have to be more thoughtful), and saving that, maybe my post will provide some cathartic commiseration to all of the other people who I know face a similar barrage of unqualified pitches every day (and I won’t even get into the cold phone calls). The subject line of his last email was “Just busy?”

 Hi [name redacted], 

I know you’re just doing your job, but I wanted to give you some feedback as a busy CEO you are prospecting. Please take the below in that spirit — I’m just trying to be helpful. It looks like [your company] has an excellent management team, and I’m sure the team is doing really interesting work. 

A few key points: 

1. Your level of persistence is verging on annoying. I admire persistence, but the tone of your emails suggests that you are more focused on solving your problem (finding leads for your product) than mine. There is nothing in your emails that suggest you have done any homework on Etsy’s business and what we might need. I’ve written a lot about what Etsy is doing and I’m surprised that sales people like you don’t at least try to pull some of the content for the pitch (https://www.etsy.com/blog/news/2013/notes-from-chad-2012-year-in-review/). I feel like I’m on a long list of people you are cold-calling, you’re just looking for a “hit,” and I’m just a reminder in your Salesforce.com database.

2. If you look at my background, my background is heavy on technology and my path to CEO included being CTO of multiple companies. Your emails are very superficial given that I know this space pretty well. I’ve received hundreds of pitches over the years, and the ones that stand out are the ones that speak to the real needs of people doing the work of running large-scale Internet companies. Your pitch doesn’t reflect any knowledge about me personally and what I might already know from past experience.

3. As a CEO of a growing company, I generally have no availability. Nothing in your emails has made me feel like I need to carve out time from my schedule to meet with you. Simple repetition is not a strategy.

4. I had to look at your web site to see that the management team did some category-defining work with [well-known company in this person’s space]. You should sell that more. Don’t make your prospects do all the work of figuring out why they should answer your emails.

All that said, we’re not interested at this time, so you don’t need to email me again. Best of luck with your prospecting.

Keynote at Railsconf

I did a keynote at Railsconf yesterday entitled “Optimizing for developer happiness.” Huge thanks to Ben Scofield and Chad Fowler for the invite. It was a blast!

Below is the video and here are the slides on Slideshare.

I’ve got a longer post in me that builds on the themes in the talk — hoping to get that up in the next couple of weeks!

Update: just found a talk called “Optimize for Happiness” by Tom Preston-Werner (Github co-founder) about optimizing for happiness vs. money. Tom’s talk definitely pre-dated mine and looks at happiness from a somewhat different point-of-view. Definitely worth reading/watching.

The scourge of PowerPoint

Anyone who worked with me and others on putting the early hack days together at Yahoo! knows that one of the rallying cries was “No PowerPoint!” I’m pretty sure that the first invitation sent around inside Yahoo! back in 2005 said that explicitly, and presenters who started out with PowerPoints at those early hack days were enthusiastically booed. This theme continue to be reflected in future hack days, like the one we put together with Techcrunch just last year. The “No PowerPoint!” stance was a reflection of what I had seen or heard about in a number companies (not just Yahoo!) — seemingly endless twiddling with slide decks, with a disproportionate amount of energy devoted to aligning squares and choosing clip art. At its most pernicious, entire teams become obsessed with “the deck” and lose all sense about what they are actually trying to accomplish.

(And don’t get me wrong, I really love artfully-done PowerPoint or Keynote presentations. It’s absolutely possible and the best slide decks inspire and motivate.)

So, I particularly enjoyed this bit in Nokia CEO Stephen Elop’s remarkable “burning platform” memo:

At the lower-end price range, Chinese OEMs are cranking out a device much faster than, as one Nokia employee said only partially in jest, “the time that it takes us to polish a PowerPoint presentation.” They are fast, they are cheap, and they are challenging us.

“Only partially in jest.” Ouch.

(Thanks to @finitor for his tweet!)

Investing in people: microcredit and Kiva.org

Inspired in equal parts by Greg Cohn’s experience with Kiva.org and the awarding of the 2006 Nobel Peace Prize to Muhammad Yunus and Grameen Bank for their work in micro-credit, I decided to make a couple of small loans to enterpreneurs in the developing world. For those who are not familiar with the concept of microcredit, Wikipedia offers this description:

Microcredit is the extension of very small loans (microloans) to the unemployed, to poor entrepreneurs and to others living in poverty who are not bankable. These individuals lack collateral, steady employment and a verifiable credit history and therefore cannot meet even the most minimum qualifications to gain access to traditional credit. Microcredit is a part of microfinance, which is the provision of financial services to the very poor; apart from loans, it includes savings, microinsurance and other financial innovations.

I made two small loans today using Kiva.org, which makes the process really simple:

  • One to a 43 year-old woman in Kenya to invest in her crafts business
  • One to a 42 year-old woman in Kenya to invest in her dairy business — mainly to buy two cows and feed.

For more about Kiva.org, read the FAQ. I’ll post later about how my loan portfolio is doing, though the repayment window is 10-18 months for the loans I extended, so it could be a while (one key note: these are no-interest loans, so it’s not a money-making opportunity). Kiva claims that their repayment rate to date is 100% and data from the United Nations Capital Development Fund say that the worldwide repayment rate for microloans is 97%. Even if you’re the cynical type, this seems like a good bet.

As the Nobel Prize press release says, “Lasting peace can not be achieved unless large population groups find ways in which to break out of poverty. Micro-credit is one such means. Development from below also serves to advance democracy and human rights.” This is definitely a compelling use of the Internet.

Update: my good friend Andrew Leonard offers his take on Kiva in his Salon blog, How the World Works: “Do it yourself microfinance.” I am routinely astonished by the world as it emerges before me, but wrapping my brain around do-it-yourself microfinance has been one of those moments where I feel the earth move under my feet.