Dealing With Uncertainty: From the Crucible of Anxiety to the Chalice of Change — LESSONS IN LEADERSHIP

Dear Reader:

Last year I published two posts dealing with uncertainty. I have continued to reflect on the events that prompted the posts. I want to share with you some further insights into the challenge of handling complexity at times of crisis, and in particular what they tell me about leadership. My contemplation helped me uncover additional aspects about the leadership capacity within us, and stimulated a continuing search for what makes good leadership and how to develop it. It also made me realize how little I know, and how much help I need to better understand this topic. It has led me to recast my previous posts and focus on the question of teaching ourselves – and others – to be better leaders.

I will be using this article as the basis for a workshop I am leading on May 19, 2017 at the International Association of Management, Spirituality and Religion Conference at the University of Arkansas. The essence of my theme at that workshop is how to discover and unlock the leadership capacity inside all of us.

I very much seek and welcome any ideas, critique, suggestions and insights that you may have on this important topic.

First, a reminder: What makes us entrepreneurs is our consuming drive to bring new products to market to fulfill perceived needs. What makes us entrepreneurial leaders is our capacity to embrace the unknown and guide our organizations in times of difficulty and uncertainty. To be in the midst of this action, either as a driver or contributor, has been my joy for many years, and this joy continues as I serve on Boards and teach. The most difficult element then and now, as I dwell in uncertainty, is to find the right time and best way to act, so as to help shift uncertain situations toward greater clarity and positive resolution. I have come to recognize that nothing helps sharpen one’s capacity as much as living through a difficult experience.

A Situation that Challenged Me — Both Professionally and Personally

One of the companies for which I served as a Board member had reached an impasse. We were making substantial progress in a breakthrough healthcare technology, and were the first to engage in clinical trials. Some of our most recent results were awe inspiring. Yet we were frustrated by the financial market forces making it difficult to continue to finance development of the much-needed medical breakthroughs we were targeting. At the Board’s request, the CEO was asked to consider alternatives. The options were disconcerting: narrowing the research focus; reducing expenses, with consequent layoffs; realigning the ranks of executives to better correspond to a down-sized operation; mounting one more aggressive effort to attract financial resources in a very hostile fund-raising environment. The CEO’s recommendation was to double-down on the most advanced project and discontinue all others, which would significantly reduce the company’s expenses. The focus was to be driven by the COO, who had helped develop the options and was running the R&D.

This recommendation was not unexpected, and is certainly not unusual in entrepreneurial ventures as they pioneer new technology. I had faced these same choices in the companies I had founded and grown. So I thought that with my long experience as an entrepreneur, I was well equipped to handle these complex issues as a Board member. As it turns out, I did have the right intuition about what to do, but in retrospect, I failed in several aspects of the execution. And this is where my learning begins.

The selected scenario required a realignment of the executive ranks to better correspond to a down-sized operation. The CEO counseled a measured approach, moving toward an eventual transfer of power to the COO, while making one more effort to raise money. However, given the dire cash position of the company, the Board felt that action needed to be taken immediately. This created a harsh reality: There was no room for a CEO and a COO in a drastically slimmed-down organization.

Both executives were very talented; they had complementary strengths; and were both highly respected in the industry. In the course of the deliberations, I saw a clear – and to me obvious – path to reconcile the CEO’s desire for a slow transition and the Board’s sense that immediate drastic action was needed: Ask the CEO to become Chair of the Board and promote the COO to the top executive position. Not rocket science. But the sense of urgency in the moment and the severity of the timeline did not give much breathing room for the “of course” considerations that so often come only in retrospect. To me, “my” solution had all the correct ingredients: It would signal a smooth transition to the outside world; it would allow for a harmonious transfer of power and realignment while implementing the difficult step of reducing and focusing the organization; and it would preserve the dignity of the CEO, recognizing his many years of service to the company. There was, however, one more factor, which on the one hand, compounded my personal thought process, and on the other, opened up potential pathways to help resolve the crisis. The CEO had become a personal and very close friend of mine, and he trusted me. Unraveling and appreciating this additional personal pressure on me was to come later. At the time, I simply “knew” what had to be done.

The Board decided to implement the immediate change. They agreed to my suggested approach. Because of my close personal relationship with the CEO, I volunteered to join the Board Chair in conveying the decision to the CEO. I just could not do otherwise, unpleasant as the news would be. I was feeling the emotions that everyone was experiencing and, in particular, anticipating the emotional roller-coaster the CEO would soon be going through. I was not about to leave this tough job to someone else.

The subsequent series of one-to-one meetings with the CEO and the COO – who had to agree to take over immediately from the person who had hired him in the first place – are hard to describe or even for me to revisit. I would not wish this experience on anyone. And here is the hardest part of the story (as if the rest was not hard enough): To my disappointment, in the end the Board did not elect the CEO to be Chair, and he left the company in spite of my recommendation to put in place the smooth executive transition that I had envisioned. I had failed, and this weighed heavily on me.

In retrospect, I was obviously not fully aware of the enormity of the inner forces that were acting on me as I participated in these intense deliberations. I could intimately feel the disappointment of the scientists and physicians who had tirelessly dedicated a significant portion of their lives and careers to driving this important, next-generation technology forward. I could intimately feel the struggle of my friend, the CEO who had staked his life on pursuing the goals of this company in which he deeply believed and to which he had dedicated over fifteen years of his life. (I knew privately that he had refused several opportunities to lead other companies with an easier technological path because of his loyalty to this dream.) I also sensed the forces acting on the other Board members as they wrestled to make the best decision possible under very unpleasant circumstances and a tightening timeline.

To make matters even worse, shortly after we took these streamlining and tightening actions and the CEO had left, we received reports from our clinical trials that while the impact of our treatment was still significant, the level of progress of our study patients had slowed — something we could not immediately explain and had never before observed. We could see ways to determine the cause and implement adjustments, but in our current financial circumstances this was impossible. On top of the trauma of the staff reductions inherent in narrowing the operation’s focus and of the change in leadership, our team was now faced with clinical results that would significantly extend the timeline to commercial implementation and render the company’s survival much more perilous.

A Message of Significance

These events led to many sleepless nights for me. Now that the CEO had left, the questions that continued to haunt me were: Had I done everything I could? What was going on inside me, as I struggled with these forces? How was I handling the unraveling of a company I had supported for so many years? How was I coping with the deep disappointment of a very good friend and a threat to a friendship I cherished?

As I was wrestling with these challenges, my friend Bob Quinn, Professor at the University of Michigan Ross School of Business, posted a brief article in his blog entitled “An Elusive Leadership Skill.” [1] It prompted, in me, a cascade of ideas and reflections about leadership, all centered on the issue of coping with uncertainty in situations as complex as the one I was facing. I found two phrases in Bob’s post particularly thought-provoking:

  • Leaders “pursue their purpose by stepping into the crucible of anxiety,” and
  • Leaders “communicate the simplicity from the other side of complexity.”

The first phrase introduces the very descriptive and appropriate metaphor of a crucible: a container that can withstand severe conditions, usually high temperatures, which is often employed to conduct chemical reactions under harsh conditions. As I consider some of the most difficult leadership situations I have dealt with, many of which have involved personnel issues, I can picture stepping into such a crucible and standing there with a great “churn” in the pit of my stomach – and the sensation of being overwhelmed and even torn apart by the process.

The second phrase is derived from the wisdom of the early 20th century jurist Oliver Wendell Holmes who, in essence, said that he cares little about the simplicity on this side of complexity, but gives much value to the simplicity found on the other side of complexity. He is actually reported to have said it even more dramatically: “I wouldn’t give a fig for the simplicity on this side of complexity; I would give my right arm for the simplicity on the far side of complexity.”

Bob’s post could not have come at a more appropriate time, as it so aptly characterized my state of mind at that moment. I knew I had to remain immersed in the crucible. If I were to act without my full emotional engagement and instead simply ponder the elements of the situation dispassionately, I would be making decisions from the simplicity on this side of complexity — comfortable but irresponsible. I could also, at that point, have just resigned from the Board and left the issue behind — in effect, finding the simplicity for me, without much further regard for the complexity with which the company was dealing.

This put into focus a harsh reality of life: If we are to be players in an important mission, we have to endure the churn of the crucible and hope a new understanding crystalizes – or not step into it at all. There is no halfway measure: Full exposure is needed to appreciate the totality of a problem and do justice to our commitments with integrity and honor.

Full immersion is, of course, the lot of the CEO. It comes with the office. As members of the Board, our immersion should be no less intense, but we are granted a different vantage point and perspective, whence comes the value of our role. But just like a CEO, we need to be willing to absorb the anxiety of immersion and thus be open to learning in real time. And, perhaps most importantly, we must be able to overcome two elements that may easily mislead us: our egos and our prejudices. In the heat of the chemical reaction, we may not even notice these reactive agents.

In this situation, my ego pestered me to find a solution in short order, consistent with my image of being a seasoned executive. Meanwhile, my “better nature” struggled to find a path that would allow us to resolve the situation without damaging the dignity of the key players, in particular the CEO. As I pondered these issues, and at moments felt the natural urge to “escape the situation,” something became clear through the insights of Bob Quinn’s post: While we are compelled to dwell in the cauldron of uncertainty, our equally important task is to find a way to get to the other side of the combustion so that we can discern the essence of the quandary and gain clarity. We need to find the simplicity on the other side of the complexity. Yet it also became clear to me that while I needed to step out of the furnace, I had to do it without detachment. I still owned the situation! I had to maintain my link to the complexity but not be overwhelmed by it. I was not just an observer; I continued to be a protagonist. The admonitions that some were giving me to “be objective” or “be professional” totally missed the point.

No. I was not going to quit the Board. The only viable alternative for me was to fully continue in the complexity: to continue to be totally immersed in the subsequent deluge of facts and unknowns, of pressures and opinions, of perceptions and vested interests, and of major disappointments.

Converting the Crucible

When, in the heat of the Board deliberations, I suggested elevating the CEO to Chair I took a chance. I had not talked to the sitting Chair who had led the Board well for a long time. The Board was about to commit to a decision, there was no time for procrastinate. The much simpler and expedient approach was actively being considered: Ask the current CEO to leave immediately, elevate the COO, redirect the company. This just did not sit well with me. Yet, I was just another Board member. I was not the founder, not the Chair, just a part of the group. I could have let the direction of the discussion continue and “go with the flow.” But I could not. I deeply felt the “rightness” of my approach, and had a deep, irresistible urge to express it. I was in what Bob Quinn calls “the state of authentic engagement.”[2] I spoke. It resonated. And I became the purveyor of the difficult news.

As I walked out of the Board room to fulfill my task one of the Board members, who is not known to be very “touchy feely,” turned to me and said: “Ric, I love you.” It was the leadership moment. It transcended me, it responded to the spoken and unspoken needs of everyone. I was just a conduit.

I followed through with the intense meetings with the CEO and the COO, but yet my head and heart were not totally clear. I was deeply immersed in the cauldron and feeling the constant heat of the reaction. I had trouble sleeping. At times, I was unable to think clearly. I was suffering. And it was compounded by the fact that the CEO then left and we were facing the disappointing clinical results. Something needed to change within me, if I was to continue to be a positive contributor.

The change occurred one morning, several weeks later and deeply influenced by my reflections regarding the crucible of anxiety: In my daily meditation, I suddenly moved the crucible from the interior of my gut to just in front of me. While this sounds illusory, it was very real to me. In a moment of incredible clarity, I was able to “see” all the elements churning in the crucible of anxiety in sharp focus, and actual shift them out of my tense interior.

My early morning meditation ritual is a very spiritual time. Everyday, I take twenty minutes of very private time to sit still, quiet my mind, and attempt to move beyond the noises and pressures that crowd my thinking and my psyche (including those that are conspiring to tighten my gut.) Once in a while, this practice allows me to reach a state of deep peace, which carries with it an empathy and caring for everything and everyone, near and far. That is just what I needed, in the current state of affairs, and suddenly, instead of a crucible, I found myself holding a different sort of receptacle in my arms, which contained all the churning elements. But it was now in front of me where I could see it, rather than ominously lurking inside me. Importantly, this vessel felt amicable, not antagonistic. I felt love (yes, love) pouring into it, and a strange new ability to attend to each part of the mix – people and situations – in a warm and caring way. This experience startled me: I had converted the crucible of anxiety into a chalice of change.

The moment was unbelievably liberating. My ego dissolved and I became focused only on the highest good. My purpose as a member of the Board clarified and became not just another job, but a sacred task. My fear turned into confidence, and the chalice enabled me to finally employ all of my leadership tools more effectively: my analytical capabilities, my sense of purpose and passion, my moral compass and my spiritual anchors. This would not have occurred had I not been practicing my daily mediation.

I use the word “chalice” advisedly. The crucible burns with intolerant heat, while the chalice refreshes and rejuvenates, bringing transformation when we drink from it. To me, the chalice connotes a vessel that purifies, transmuting the elements and giving us an ability to see the process with greater clarity.

The moment I embraced the chalice I was transformed. I had a much firmer view of the dynamic whole, and sensed the simplicity on the other side of complexity. Most importantly, I found the strength to be fully present while confronting the conflicts with gentleness. I recognized the best in each actor, and I felt that no matter what I had to do, I could perform my duties with respect for each party. And part of that feeling of compassion was toward myself.

This came as the Board made the wrenching decision to liquidate the company. Several of the other Board members chose to leave. I chose to continue. The chalice transformation made it clear to me that I had to see the situation through to the finish, regardless how painful it was to disassemble a company with which I had been associated for a dozen years. My goal, together with two other Board members, was to implement the wind-down in a manner that safeguarded the dignity of the employees who had worked so tirelessly in the pursuit of our dream of a medical breakthrough and, equally important, to find a home for the technology that would ensure the continued pursuit of the possibilities of a treatment that might save the lives of our children and grandchildren. I also dedicated myself to rebuilding my friendship with the CEO, which had been deeply frayed by the events that had unfolded. I could not have done this had I not converted the crucible into a chalice.

A Crucial Conversion Ingredient

I believe that this flow through complexity to simplicity has deep spiritual significance. It is therefore not surprising that the insight of the conversion from crucible to chalice came to me during meditation. It also indicates that there is a much deeper aspect of this that could have implications for our leadership – and life – journeys: our ability to hold opposites without feeling threatened.

A special passage from Father Richard Rohr’s book Eager to Love keeps coming back to me in this context[3]:

Paradox held and overcome is the beginning of training in non-dual thinking or contemplation, as opposed to paradox denied, which forces us to choose only one part of any mysterious truth. Such a choice will be false because we usually choose the one that serves our small purposes.”

This suggests that avoiding our “smaller purposes” becomes crucial when we need to transform the crucible to a chalice. This is also true when we face many of our leadership challenges. In my classes and in my book, I speak of the necessity for leaders to continuously move from the specific to the general, from the narrow to the broad. As leaders, we absorb the broad uncertainty of our venture so that others on the team can focus on more specific aspects of the mission, which they are often much more qualified to tackle. I liken this to our breath: When we breathe in, we expand our horizon, taking in the 360-degree vista. We are alert to opportunities and threats without blocking them with our prejudices and small purposes. Yet we cannot just breathe in; to survive we must also breathe out. When we do, we transmit energy, passion, direction and focus. It is a continuous flow. In the breathing-in phase, we must hold opposites. We need to be able to encompass paradox. We need the capacity to fully entertain conflicting positions. And we need to fully understand contrasting positions from those who advise us.

The Leadership Voice

To sense the “simplicity on the other side of complexity” is not enough. Our task is to permit our leadership capacity to manifest. We must therefore unshackle it. The transformation from crucible to chalice is a step in this “coming out” effort. I propose that true leadership springs from an inner well that sustains an inner flame. It is a delicate flame, protected by a lifetime of defense mechanisms that develop as we cope with our personal experience of living. To allow an opening in this armor without damaging the inner layers is subtle and delicate, yet that is the required effort.

The place that I am talking about is difficult to describe. A wonderful passage from Thomas Merton perhaps does so best[4].

“Again, that expression, le point vierge, comes in here. At the center of our being is a point of nothingness which is untouched by sin and illusion, a point of pure truth, a point or spark which belongs entirely to God, which is never at our disposal, from which God disposes of our lives, which is inaccessible to the fantasies of our own mind or the brutalities of our own will. This little point of nothingness and of absolute poverty is the pure glory of God written in us, as our poverty, as our indigence, as our sonship. It is like a pure diamond blazing with the invisible light of heaven. It is in everybody, and if we could see it, we would see these billions of points of light coming together in the face and blaze of a sun that makes all darkness and cruelty of life vanish completely. I have no program for this seeing. It is only given. But the gate of heaven is everywhere.”

And, of course, the beauty in this is that as our leadership voice springs from a point of light linked to all lights, it speaks directly to the light in other individuals. They feel it. They do not have to go through the intellect to sense it fully: It is expressed from that deeper place. It prompts even the hardest of us to say, “I love you.”

An Opportunity for Reflection and Deep Learning

Bob Quinn, in his book Deep Change: Discovering the Leader Within,[5] looks at leadership not as behaviors and techniques, but as a “state of being.” As a guide and teacher, I echo Bob’s thoughts. The capacity for leadership is in all of us. As Bob’s book title suggests, we just have to discover it.

The challenge for us as teachers is to figure out how we can help others (and ourselves) with this discovery; what we can do to “free” ourselves to capture that capacity; what state of mind allows us to manifest it in the right moment. How do we train for it? How do we coach it?

Two words in Father Rohr’s quote are noteworthy, as he refers to paradox: “held” and “denied.” What are we constantly denying as we face situations? What makes us deny? Does therein lie the secret ingredient — the catalyst for a crucible to chalice transformation? How do we train to hold paradox?

Here are some recommended steps for making the most of the opportunity when we come face-to-face with uncertainty:

  • Recognize the complexity.
  • Know that our job as leader is to fully enter the crucible of anxiety.
  • Acknowledge that it will be uncomfortable.
  • Commit to remain in the crucible as long as you need to, resisting the temptations of “easy” solutions.
  • Allow the transformation of the crucible into a chalice (by the deep reflection and contemplation that allows a mindset change and converts the problem into a sacred task rather than a burden) thereby gaining the peace that enables the discernment needed to help you arrive at the eventual decision or action.
  • Then, step to the other side of complexity with the simplicity offered by clarity.
  • Act only when you have reached the simplicity on the other side of the complexity.
  • Enact your decision with conviction, confidence and respect. Capture the leadership moment. Speak from your “center.”

Consider the times when you have felt the crucible emerge. Were you able to transform it into a chalice, even if you may not have characterized it as such at the time? What did you learn from this? Examine how you might improve such situations and how, in the future, this might help you in better leading your organizations or teams.

And perhaps even more broadly: Might the crucible-to-chalice model help you in resolving your own personal affairs?

References

[1] https://thepositiveorganization.wordpress.com/2016/07/20/an-elusive-leadership-skill/

[2] Bob Quinn Post June 24, 2016

[3] Richard Rohr, Eager to Love: The Alternative Way of Francis of Assisi ( Cincinnati, OH: Franciscan Media, 2014)

[4] From Merton’s Conjectures of a Guilty Bystander, quoted in Lawrence S Cunningham, Thomas Merton: Spiritual Master, Essential Writings (Mahwah, NJ: Paulist Press 1992) p 146

[5] Robert E Quinn Deep Change: Discover the Leader Within (San Francisco: Jossey-Bass 1996

ON BEING A BETTER CHAIR OF THE BOARD

Dear Reader:

I write my blogs sporadically. Triggered by particular events or situations with which I am deeply involved, I find myself prompted to write because of the acute nature of the matter. This post, however, is different. The subject has been lingering inside me for a long time. It rarely rises to the acute level, but rather I feel it as a dull “chronic” discomfort in situations when I sense a problem, but the stimulus is not strong enough to incite me to act. And then I bemoan the fact that I did not act in time. It’s like an ache telling me I should go and see the doctor… Yet I don’t go, figuring that trying to describe it would be too amorphous and thus embarrassing. Of course most of the time, it dissipates and life goes on just fine. But sometimes it does not.

The subject? Maximizing the effectiveness of a Board of Directors. I have been involved with Boards for almost half a century, and I attribute much of my entrepreneurial success to the extraordinary nature of the Boards I have been privileged to build and serve under as CEO. As I reflect on what worked so well, a few factors are evident:

  1. Each member of my Boards has been a superb professional.
  2. Members have joined my Boards because they believed in the company mission and trusted the executives.
  3. They did not do it for money, yet felt respectfully compensated for their efforts.
  4. They respected the other Board members, enjoyed their company, and did not hesitate to express their opinions while listening to the opinions and positions of their colleagues.

At the same time, I recognize that the Board of Directors is often comprised of strange bedfellows, which can be awkward. Meetings are few and far between, often months apart; some of these meetings are by phone; in-person meetings are even more infrequent. Members may know each other outside of the Board, but most likely do not see each other very often. They may live in different parts of the country or the world. To say they are a team is sometimes a stretch. To make them a team is possible but takes concerted effort. Yet Board members have a weighty responsibility: to monitor the company’s performance on behalf of the shareholders and ensure that execution meets expectations. To do so, one of their most important responsibilities is to hire and monitor the performance of the CEO. Yet for their deliberations and decisions, they depend on information that is provided by the CEO – who is, most likely, also a member of the Board. This places the CEO in a strange position: being a part of a group from which he or she may be excluded, when certain decisions are taken behind closed doors.

Most of the time this works very well. In addition to the caliber of the Board members, two critical factors facilitate good results:

  1. An active effort on the part of the CEO to work with the Board, by communicating often, managing the information flow and making key executives available for complementary discussions; and
  2. The skill, sensitivity and impact of the Board Chair.

It is the Chair on whom I want to focus in this article. I have been privileged to act as Chair on many Boards, as well as to serve as a Board member under many different Chairs. As I think back to the most critical growth periods of my companies, I attribute part of our success to my discipline in taking time to check in on all Board members frequently, to keep the information flow current, to never allow for any surprises, and to ensure that views are expressed and heard even in the most pressured moments. The times when I did not do well as Chair occurred when I fell into a few traps, which I describe below as typical “Syndromes.”

While many shortcomings can manifest themselves during the normal course of Board business, many manifest during Board meetings. The challenge is that Board meetings can be highly “charged” by the very nature of the participants, their inherent intensity and the import of their role. To work best, Board meetings require members – in particular the Chair – to be very aware of and present to emerging dynamics. When the tenor begins to crescendo, a good Chair senses this and redirects the energy before a discharge occurs. If, on the other hand, the Chair is affected, in whole or in part, by any of the Syndromes outlined below, things may rapidly take a course that is unanticipated or unintended.

The “Strongest Voice” Syndrome

A situation that appears in particular at Board meetings is something that all Chairs face: the Board member with the strong voice and the quick mind (especially financial), who can overwhelm a meeting and reduce the opportunity for considered deliberation, often by dint of his or her brilliance and eloquence. In doing so, such a strong voice may rob the Board of the great value of hearing different viewpoints and shared experiences. I learned this the hard way with some very vocal Board members in the early years of my entrepreneurial journey. But I also learned that if managed properly, such a situation can end with very positive results. One case that is strikingly vivid in my mind was when my young and small pharmaceutical company considered buying a large manufacturing plant in North Carolina. It contained a very sophisticated sterile manufacturing facility, something that was outside of our expertise. One Board member stated flat out that such a move would be crazy. His voice seemed particularly relevant because the facility had been built under his watch when he was CEO of the seller, a large drug company. You can imagine the weight of such an opinion. Fortunately, we were able to navigate the discussion to an examination of what it would take to make such an acquisition possible and prudent (in addition to the need for sizable funding which, at that point, we did not have.) In the end – and that end was 10 months later – we did make the acquisition and it catapulted our firm to be the largest outsourcing manufacturer of drugs in the Americas.

The “Founder” Syndrome

Being a company Founder is one of the greatest joys of the entrepreneur, especially if the enterprise grows. As I advise many Founders, a critical part of success (as it certainly was for me) is building superb Boards. Ideally, the Board is truly a strong, independent voice that enriches the leadership, guides and mentors the entrepreneur, and ensures that the business avoids mistakes that waste time and money. For this to be the case, an active, free and candid dialogue at the Board level is paramount. We must be careful not to overwhelm the Board with our “Founder’s aura,” which can be limiting. We tend to be so focused on our passionate vision that our capacity to listen may be affected. Selective hearing is a common ailment. We Founders need to constantly remind ourselves to clear our ear canals.

The “I am Still the Boss” Syndrome

This happened to me several times, and is related to the Founder-Chair issue described above. I founded a company of which I was CEO for many years. Eventually, I transitioned to Chair when we brought in a new CEO more capable of further growing the company. My shortcoming as Chair was due to the presence, often inadvertent, of my fingerprints on the everyday running of the business. I had given up the CEO title, but never fully let go. And the new CEO could feel it, as could the employees. Without meaning to, I was exerting an influence over the company that did not allow the new CEO to fully gain the leadership needed to propel the company to new levels. And I never appreciated that because of my lingering presence the incoming CEO – who I had recruited and felt very positive about – never entered the full covenant needed for him to be an effective entrepreneurial leader. A few years later, he found “a better offer” and resigned, giving us a very “generous” three-week notice. When I asked him how he could leave the company hanging at such a critical time, he simply said, “Well, what’s the problem? You’re still here.” That told the whole story.

The “Confusion between Executive and Non-Executive Chair” Syndrome

There are circumstances when companies need to have an Executive Chair as well as a CEO. This might occur during a transition period when a President is promoted to CEO or when a new leader is transitioned into the company from outside. In general, the Executive Chair holds some of the responsibilities of the CEO, and spends much more time on the company’s business than an ordinary Chair would or should do. The responsibilities of the Executive Chair often include some operations, whereas a non-executive Chair’s do not. The problem occurs when a Chair acts as if he or she is Executive Chair – often without even noticing it. In the process, the Chair will disenfranchise the CEO, eroding some of the CEO’s initiative, and not allow the CEO to fully become the organization’s leader. This is a very inefficient situation. While I may have good intuition and the best intentions, as Chair I may suggest initiatives to the CEO. Only when such initiatives are wholly “owned” by the CEO do they stand a chance of being successfully implemented. Implementation is not our job as Chair, although our demeanor may raise expectations to the contrary.

The “Clinical” Syndrome

As Chair, we are tasked with many key activities on behalf of the Board. They include being the key interface between the Company and the CEO in negotiating the employment agreement, coordinating performance assessments, reviewing compensation, or the much more difficult task of negotiating the exit of a CEO who is being replaced. As with so many complex negotiations, personal feelings may make the task more difficult. In those situations, some of us tend to take a more clinical approach and keep it impersonal. This may work well to get the best “terms” but, in the end, is not likely to yield a win-win outcome. Hiring, performance reviews and the rare need for separation are very sensitive and personal events for all involved. Showing the warmth of our humanity in these times is essential for a good outcome. As Chair, we need to remember this. Yes, we represent the Board, which is a somewhat impersonal “body,” yet it is an entity comprised of individuals. Part of our task is to carry this humanity to the discussion, regardless of whether being “detached” might seem the more expedient approach.

The “Overbearing” Syndrome

Let’s face it: Those of us in CEO or Chair positions are, by definition, individuals with strong personalities and, often, high adrenaline levels. We are passionate about what we are doing, and approach every task with gusto and exuberance. As we grow in our leadership journey one of our most important learnings is how to “tune” this enormous energy to be appropriate for different situations. Some of us are not very aware of the “long shadow” our personas cast. Sometimes, our hugs (while meant with a genuine and caring intent) can be too tight. I have both embodied this myself and seen it in others. The challenge is how to be fully present to this dynamic, especially in the Chair-to-CEO relationship. If our inclination is to get too involved, we need to recognize when we are stealing some of the breathing space from our CEO, and pull back.

*****

The net of this post: If you are Chair, take the time to examine whether there are any aspects of these syndromes that ail you. If the answer is “Yes,” talk to fellow Board members or the CEO about your concerns, and recruit these colleagues to monitor you and help you become a better Chair. Further, I propose that neither the Chair nor the CEO are the most effective monitors of their own performance – or for that matter of the Board as a whole. These are tasks best relegated to a skilled external resource whose objectivity and professionalism inform their insights. So consider engaging an outsider for a regular 360 review of your performance as Chair and the effectiveness of your Board. While this may be time consuming and add expense, it is an extremely valuable investment that can make the difference between a good Board and an excellent Board. I have found such 360 reviews by an outside professional to offer some of my own best opportunities for personal growth. It also does wonders in “lubricating” the dialogue among Board members.

 

A LEADER’S ONGOING JOURNEY: EXPANDED EDITION OF “LETTERS TO A YOUNG ENTREPRENEUR” PUBLISHED

As I write this, two popular sayings come to mind: “Time flies when you’re having fun,” and “The best way to learn is to teach.” The five years since the publication of my first edition of Letters to a Young Entrepreneur have flown by. It certainly does not feel that long! Perhaps this is because after the book came out I entered a new wonderful phase in my life: I became a teacher.

Four years ago, the Chair of the Chemical Engineering Department at Stanford University, Eric Shaqfeh, asked me to teach a course on entrepreneurship, focused on the Engineering and Science industries that his graduates would be considering for their careers. To overcome my initial hesitation, Eric suggested I co-create the course with Howie Rosen, a fellow Stanford Chemical Engineering graduate. Howie had been involved in several biotech start-ups and became President of Alza Corporation shortly before it was acquired by Johnson & Johnson. He had already been teaching a number of biotech courses in the Engineering and Business School and was very familiar with the Stanford academic operation. This presented a wonderful opportunity for me to share my experience and convert the concepts I had presented in Letters into lectures and discussion material for seniors and graduate students interested in understanding the making of an entrepreneur.

In the process of shaping the course, I more keenly realized how the entrepreneurial leadership concepts in Letters apply to all of life—whether we are engaged in growing a small business or a large company, or in some other vocation that requires building and leading teams. After several years of teaching the course, I found that many new ideas had sprung from the students’ questions and challenges. I therefore decided to substantially expand Letters to provide my students with a more comprehensive basis for our dialogue. The increased scope of the second edition prompted me to add a sub-title reflecting that greater breath: Succeeding in Business Without Losing at Life — A Leader’s Ongoing Journey.

The new book is available from Amazon and other outlets, and will soon be available in electronic form on Kindle and iBooks. Convenient links to order the book can be found on this website.

I thank you all for your continued friendship and support.

FROM ENTREPRENEUR TO ENTREPRENEURIAL LEADER: KEY LEARNINGS

KEY QUALITIES OF AN ENTREPRENEUR

Over the last several years, while working with my students, I have developed a series of descriptors that profile the entrepreneur. They are based on my experience as a life-long creator of new ventures. Like all “lists,” this is an abbreviated articulation of what is a complex and multi-faceted whole. Yet it serves to highlight some elements of what all entrepreneurs need to consider, as we strive to become better leaders.

My list is split into three domains of the entrepreneurial character: Inner, Outer and Core. I am not attempting to be comprehensive; I mainly want to trigger an active conversation that deepens our understanding of what makes an entrepreneur. Here is the short list:

INNER: -Passionate -Positive -Risk Tolerant -Big Thinker -Visionary
OUTER: -Articulate -Clear -Enthusiastic -Inspiring -Nimble
CORE: -Consistent -Authentic -Persevering -Discerning -Grounded

Clearly, many other characteristics might be added. Here are a few that have been suggested in my class discussions: Salvager (I like this one!), Dreamer, Realist, Courageous, Charismatic, Tough, Resilient, Self-confident, Good Self-esteem, Integrity. I am sure that you can think of others, and I welcome any ideas. My main aim is to take these characteristics and examine what I call the three key habits that an entrepreneur needs to master if he or she is to become a good leader: To Balance, To Breathe and To Trust.

LEARNING TO BALANCE

This may seem to be the easiest of the three, but yet is so often forgotten. The main reasons we entrepreneurs tend to neglect balance are:

1. We do not know ourselves well enough to identify our strengths and shortcomings (or if we do, we are unable to admit them, which amounts to the same thing), and

2. We are impatient. Often, for us, it is so much easier to just plow ahead, figuring that by the time we tell others what we want to do and how we want it done, we might as well do it ourselves. Yet the key to growing a venture is to engage others in the journey, and then deploy all constituents in the optimal way to reach our goal. To do this, we need to find balance, starting with ourselves.

Let’s take another look at the list of domains above, and consider where we sit in the optimist-realist scale. When I ask my students, most identify themselves as optimists. While that is fine (since a non-optimistic entrepreneur will find it hard to gain a following), we have to be very careful not to overlook the criticality of realists in our midst. In my book Letters to a Young Entrepreneur, I mention a number of instances in which having hard realists around me balanced my rose-colored glasses and saved our company.

Perhaps of more immediate relevance to all of us is the balance between leading and managing. For most of my entrepreneurial career, I never really tackled that question. I just did what I thought needed to be done, often resulting in micromanagement, and thus often limiting the creativity and contribution of others. Later, as an “entrepreneur emeritus” and teacher, my course preparation led me to a classic Harvard paper on the subject: John P. Kotter, What Leaders Really Do, HBR December 2001. I urge you to read it. It captures, in a wonderful way, a vital topic. I summarize Mr. Kotter’s concepts as follows:

Where a leader points, a manager plans.
Where a leader aligns, a manager organizes.
Where a leader inspires, a manager problem-solves.
Where a leader produces change, a manager produces predictability.

What each of us should examine is our propensity to lead or to manage. There is no value judgment in this question. Both are essential. The key lies in matching our skill with the need: achieving balance!

LEARNING TO BREATHE

As we grow in responsibility, whether in our own entrepreneurial ventures or in our roles within larger organizations, we expand the breadth of the topics that fall within our purview. We gain an increasingly broad sense of the task at hand, and we take on an increasing span of responsibility and accountability. In Letters, I introduce the concept that a leader’s main job is to absorb uncertainty (Chapter 3.) Presumably, as leaders by definition we have a more comprehensive view of the venture than do others – or at least we should have. Think of what we do when we drive a car: as we approach a sharp curve, our eye is (or should be) ahead of the curve. This makes for better and smoother steering. Also, as we “see” more of the road, we feel more secure in our steering. In the concept of “absorbing uncertainty,” a leader takes on the larger burden, so that others on the team can focus on more defined parts of the task.

To do the leadership job right, we need to encompass as much of the “scenery” as possible. I equate this with taking a deeper breath, as we spread our arms (and our awareness) to a broader horizon. This also requires us to look to the very edges of our field of vision – for threats and opportunities that may be less obvious.

This is the breathing in part.

However, we also need to breathe out, exhaling our breath in a purposeful manner to help our team gain focus and direction. As we breathe out, we point the way.

And this is the toughest part, at least for me: we need to breathe in and breathe out, continuously. My tendency is to dwell in one mode or the other – spending too much time either scanning the horizon or burrowing toward the completion of a particular project. To keep our venture healthy and alive, as leaders, we must sustain a constant flow between the two: breathing in and breathing out.

LEARNING TO TRUST

Both in breathing in to absorb uncertainty and breathing out to provide focus, a key ingredient is the mutual trust between our venture companions and ourselves. That requires us to be vulnerable, so that people can truly feel the genuineness of our commitment. And it requires that others “surrender” their reservations and have faith. That faith is critical. Without it, what we do is just mechanical and lacks the directional vector — the deeper purpose that is so important in providing energy to move toward our goals, whether we are leading or following. In Letters, I speak of trust packets as the vehicles in the exchange of commitments between leader and team member. I also speak of commitment as a mutual covenant, not policed by an outside document or a quality control officer. It is an internal act, upheld only and solely by our inner character.

This trust factor is the essence of the core within each of us. It raises the very fundamental question: can one learn to trust? Look at the adjectives I chose for the Core group above: Consistent, Authentic, Discerning, Persevering, Grounded. Are these innate? Or can they be trained?

The reason that this is an important issue in my course is my desire to leave my students with the tools to expand their leadership capacity. So I ask them to examine all the characteristics outlined at the beginning of this article (Inner, Outer, Core), in terms of whether they are shareable, learnable or innate — a topic of very rich and important dialogue, which touches on all three of the vital habits considered in this article: Balance, Breathing and Trust.

In all of these discussions with my students, something has bothered me: the prevalence of the designation “innate.” It implies that we either have “it” or we do not. It implies finality. Core is, by its nature, deeply internal — you cannot have others “cover for you.” If you do not have it, you are “done-in.”

I have begun to take a different view. I have come to believe that everyone of us has the capacity for integrity, honesty and authenticity. Each of us has a deeply seated spark of goodness. But as we fend off the challenges of living, we tend to develop coping mechanisms that “shield” this spark of light. We grow a “shell” around our spark — a shell of varying thickness, depending on our own personal life journey. Our task in learning to be good leaders and, for that matter, happy people, is to learn to shed — or at least crack — this shell, so that the inner spark can shine through. As others see our light, it becomes easier for them to trust us to lead our entrepreneurial ventures to success.

INEXORABLY LINKED: VALUES, PURPOSE and HAPPINESS

Recently I was asked to speak to a Stanford class. Since I teach a course at Stanford, that request was not unusual. Often professors seek guest lectures from the faculty; I do it myself for my Fall Quarter Entrepreneurship course. However, this request was unusual in that the course is on “The Pursuit of Happiness and Health.” At Stanford? A graduate course attended by mostly MBA and PhD students? In the many years I spent as a student at Stanford in the 60s and early 70s, I never encountered a course like this. And probably the only reason I was asked was because a student who had attended my course last Fall is a Teaching Assistant in the class. Her question: Had I been happy throughout my entrepreneurial journey of many decades, with all its severe challenges and obvious moments of great stress and distress? And, if so, what lessons could I convey to her students? A rather daunting request.

I have never even bothered to define “happiness” before, or for that matter, to ponder the question overmuch. Perhaps that is because I was never truly “unhappy.” Yes, I have had many, many distraught moments in my life, especially as a business executive. But I weathered those moments, and in the integral of my life’s journey I have been happy and grateful. How to convey this in a way that speaks to these students, many just getting started with life’s journey and under the pressures of high financial and career expectations at this elite university?

Mindful of the mystique that entrepreneurs engender, especially in financial-success driven Silicon Valley, I decided to start the lecture with a simple graph: the valuation history of Catalytica, the company I co-founded, grew and sold. It shows an impressive hockey stick: an early, slightly sloping line that suddenly took off on a vertical axis towards a very satisfying end-value — the type of curve so typical of hundreds of business plans entrepreneurs show prospective investors. I even showed the vertical valuation axis: starting with an original investment of $30,000 from the three founders and ending with the sale of the company for almost $1 billion. At first, I did not show the horizontal time axis. I let the students “absorb” this impressive story of entrepreneurial success. Then I showed the time line: it took almost three decades! The upward swing occurred only in the final 4 years. The rest was a very gradual rising line that on the scale of the graph hid the long, tortuous, agonizing and, at points, despairing reality. It hid the struggles that truly tell the story, including the fact that to get to the end point we had to raise almost $300 million in financing, diluting the three founders to a very modest percentage. And it hid that we faced many moments where our lifeline was measured in months and we did not know if we would survive.

Was I happy along that long arduous trek? Yes. Why? Because my daily metric was not financial success. My daily metric was a deep underlying purpose, a purpose that transcended any and all of the vicissitudes that were thrown at us: the arrows, the sudden gulleys and walls, the storms, the misunderstandings and the disappointments that beset us over the years.

In my Stanford Fall course, I speak repeatedly of the power of the dream and the importance of passion as a core inner characteristic of the entrepreneurial leader. I use Catalytica as a case study, conveying the mission that helped galvanize and focus us: to use our scientific skills to create manufacturing technology that was efficient and environmentally sound, that would marry economics with environmental responsibility to create a significant company.

Yet it was not until asked to deliver this “happiness” lecture that I examined more deeply my own true personal purpose in founding and growing a company. While the concept of environmentally sound and economically viable technology definitely connected with me, and was also probably a deep personal driver for many of my colleagues, for me what made my heart really “sing” was a little simpler: the desire to use my love of science and engineering to create breakthrough innovation in a work environment of deep cooperation, trust and support, an environment where we would not only be allowed to maximize our gifts and skills, but also accept and recognize our shortcomings and flaws. A depth of innovation and a supportive environment that would make us eager to come to work every day.

Why is this relevant? Because I believe that the key to my happiness was the congruence between my deepest drives and my everyday environment. And through the ups and downs of a three-decade entrepreneurial journey, this deeper purpose informed my actions – often unconsciously – and insured that these actions were in harmony with my core values.

We hear a lot about “core values.” The term is bantered about in groups, for teams, and at companies which, through elaborate exercises, come up with value statements that can be written on plastic-encased 3 x 4 cards to be toted in pockets or posted on walls, websites or in an annual reports. But I have always wondered what it really meant, this set of core values we were expected to recite at the drop of a hat (or at least, when the topic came up, make others believe we could by nodding our heads in agreement). I finally realized that our values are not really a list, not even a set of articulated beliefs or a formulaic set of codes. Our values are our response to events, and our behavior in the face of what life throws at us. It is in this response that we show our humanity, our character, our timbre as leaders. It flows from deep inside, and is framed by our deepest purpose.

That is why pondering our deepest purpose is so important. My message: find your true inner purpose, articulate it, massage it, feel it. Then let it be the conscious template of all your actions.

It also means that to embody our values we need the capacity to match issues and actions to that purpose, and the capacity to let events be digested in the crucible of our inner being for sufficient time to frame our response. This needs quiet space; it needs moments of inner peace. And it is one reason why I include in my Stanford course an entire session on spiritual anchor and meditation.

Another revelation: For a long time I have felt a power in reflecting on what I would like to see in my epitaph. I have talked about this with my wife, expressing to her that when I die I would like my tombstone to have a very simple statement: He touched and he cared. As I look at the statement of deep purpose I shared above, it really comes down to two words: impact and harmony. I see now how parallel these two principles are to my proposed epitaph… And how embodying my values and my purpose in life have been inexorably linked to my happiness.

EXPANDING THE CANVAS AND FINDING THE COMPASS: THE ROLE OF MEDITATION IN DECISION MAKING

Technical innovation is often at the heart of an entrepreneurial venture. The leader’s role is to create the right environment to facilitate and foster such innovation. This requires bringing together people of different skills and specializations, ideally individuals more competent than the leader in their areas of expertise, very comfortable pushing the boundaries of the unknown in their particular domain. Their domain risk tolerance is likely to be very high.

What the leader needs to recognize is that the risk tolerance of the expert in his or her area of specialization may not apply to their tolerance of the uncertainties in other aspects of the entrepreneurial venture. For example, a scientist who may be one of the best in the world at creating new photovoltaic materials and be very at ease with the inherent uncertainty of the discovery of new PV compounds may be very un-easy with the challenges of financing or selling. Just think of the un-ease that scientist may feel when confronted with only a six-month cash runway. The role of the leader is to absorb any extraneous uncertainty that may get in the way of the expert team member, freeing that individual to do the best job possible, to do the job unbridled 

Taking responsibility for the full uncertainty of the company is the logical task of the leader in an entrepreneurial organization. After all, the senior executive has the whole company in his or her hands, and is the one person most aware of all the known factors affecting the destiny of the company. That is the nature of the office. But how does a leader cope with such a large burden?

Two “capacities” make this possible:

  1. The capacity to “see” the whole picture, and
  2. The capacity to access a compass that will point in the appropriate direction.

By seeing the whole picture, I mean the ability to see beyond the obvious and immediate, to cast a wider vista and recognize all the forces and all the opportunities. As an engineer, I am particularly sensitive to the importance of drawing the full perimeter around a problem. We are trained as systems thinkers. We learn to scope an issue, define the relevant influencing parameters, gather data, and then establish some criteria that will permit prioritization of potential solutions. Then we go into action – until either we find the right solution or find out that we chose the wrong path. So we go to the next one. The key in this process is to make sure that we are smart in outlining the envelope of the issue, in defining the frame of the decision-making canvas. Make it too narrow, and we miss some key elements. Make it too broad and the task becomes too unwieldy and will take too much time. Yet someone needs to have the bigger picture, even while the team is tackling the narrower problems. That is the leadership job.

But it is not the only job. At the same time as “holding” the big picture, the entrepreneurial leader must be capable of reducing the scope of the issue, shrinking the canvas so as to concentrate the attention of the team on the most critical issues of the moment. This skill to breathe with the canvas, to maintain flexibility of the frame’s shape and size, is what distinguishes the brilliant leaders. This “canvas breathing” permits the leader to maintain visual acuity, often threatened by constant external disturbances and frequent surprises. It can reveal the silver lining in unforeseen problems, and permits the leader to discover alternative pathways around roadblocks.

To breathe with the canvas, the entrepreneurial leader needs to distinguish between the forces that are important and those that are distracting, to filter the noise, deflect the arrows, prioritize the demands that are constantly calling. This requires stepping back, and finding quiet zones within. For me, the best way to find such quiet zones is through meditation.

Meditation also helps with the second capacity that allows the leader to absorb uncertainty: access to his or her decision making compass. The need for a compass is perhaps best illustrated by a suggestion made in a fascinating book I just read and highly recommend: Incognito by David Eagleman. I found it to be a brilliantly written overview of the functioning of the brain, by a knowledgeable and very eloquent neuroscientist. His thesis is that the overwhelming majority of our actions are determined by the millions of chemical and electrochemical events in our body, and they are deeply influenced by our lifetime experiences. We may believe that we are making “conscious decisions,” when in reality the sequence of signals that leads to our decisions have already taken place before we are aware that we are taking action. And he talks about how to access this unconscious part of us, how we tap into our vast unconscious reservoir:

 “If you cannot always elicit straight answers from your unconscious brain, how can you access its knowledge? Sometimes the trick is merely to probe what your gut is telling you. So the next time a friend laments that she cannot decide between two options, tell her the easiest way to solve her problem: flip a coin. She should specify which option belongs to heads and which to tails, and then let the coin fly. The important part is to assess her gut feeling after the coin lands. If she feels a subtle sense of relief at being ‘told’ what to do by the coin, that’s the right choice for her. If, instead, she concludes that it’s ludicrous for her to make a decision based on a coin toss, that will cue her to choose the other option.”

Meditation has allowed me, at critical times, to “probe what my gut is telling me.” It allows me to withdraw from the mundane hum and the many “demand arrows” that are constantly pointing at me yelling for my attention, arrows that tend to freeze the frame of the picture I am confronting, freezing the size of my canvas. It takes me to a quiet zone within myself that allows the canvas to expand and permits me to “see” problems differently, to hear my perhaps previously undetected inner voice, and to understand the best direction to pursue.

This very important “internal work” of leadership moves to a much broader topic, which I will tackle in a future post. It deals with the ability to expand the canvas to its extreme dimension, to the infinite, where we have a chance to reach a place where everything is one. It is the place the pre-eminent Christina mystic of the last century, Thomas Merton, calls “le pointe vierge,” the place Jesuits are taught in the Ignatian exercises to assess their feelings of “desolation and consolation” as they face difficult moral dilemmas. The seeking of this convergence point, this point of oneness, is my definition of spirituality, and is also closely connected with what I believe should be a holistic vision of the raison d’etre of one’s business or, for that matter, one’s life adventure. This is nicely explored by my good friend Jim Cusumano in his upcoming book, Balance, the Business Life-Connection, to be published this April by Select Books, Inc. 

LET’S NOT FORGET THE “HARD BUT ESSENTIAL” ENTREPRENEURIAL INITIATIVES!

I have been frustrated for some time with the high level of “noise-hype” in Silicon Valley about social media and the so-called ”disruptive technology” start-ups. The noise has abated a little – but only a little – since the Facebook IPO debacle. Yet one still opens the Business Section of the San Jose Mercury News to find one story or another of “wunderkinden,” aged 25 or less, unleashing “earth-shaking” startups with enormous growth prospects and stratospheric potential valuations. And this phenomenon is not limited only to the local press. The New York Times seems to have a similar tendency to regularly “feature” such up-and-coming high tech companies.

To be fair, I acknowledge that I tend to be somewhat “old school” and am therefore struggling to be “in the flow” with the social media revolution. I am, however, starting to appreciate social media’s significance as a powerful vehicle for communication, marketing and connectivity, as well as the remarkable flexibility represented by interlinking technologies such as cloud computing being implemented by many of the companies with which I am involved. I certainly do not want to discourage any entrepreneurial efforts, as they are the life-blood both of the young and of our economy.

But I am concerned by a seeming lack of balance. Our world’s population is growing at a frightening pace. We need an injection of innovation to produce enough food, clean water, energy and health services to survive. These industries require entrepreneurship just as much as do our pure-play high tech efforts. I want to see as much enthusiasm about starting (and financing!) a new solar photovoltaic cell concept or a novel targeted disease therapy as I want to see another clever App – maybe even more, especially when it comes to game Apps. Our young university graduates must be encouraged to deploy their creative juices in new ventures in the engineering and science-based industries in spite of the fact that they will take years to develop and millions of dollars to commercialize. The motivation should be to make a significant impact in the world, not merely near-term financial gratification.

This is one reason that I have agreed to put together an entrepreneurship course with biotech executive Howie Rosen for this Fall at Stanford University. The course will focus on capital-intensive, long-development/lead-time industries with high intellectual property content, such as biotech, bio-engineering, material science and energy. It will be offered to senior and graduate level Engineering students and to participants in the Stanford Center for Professional Development. It is intended to complement the many excellent “high tech” courses that Stanford offers in both the Engineering and Business Schools.

The need for innovation in the “hard but essential” industries has come home very clearly to me during these last few weeks. I had the privilege to serve as a mentor to an outstanding and inspirational group of Third World entrepreneurs in the 10th Anniversary Class of the Santa Clara University Global Social Benefit Incubator (GSBI.) I wrote about this critical initiative in my August 26, 2011 post titled “The Pleasure of Combining Entrepreneurial Experience with Social Impact.” The current cohort of 20 entrepreneurs comes from a broad range of nations in Asia, Africa and Latin America. They serve the poorest four billion citizens of this earth, the “Base of the Pyramid.” Their initiatives are characterized by a deep social purpose coupled with a drive to be self-sustaining and scalable. They spent nine months in an often grueling qualifying effort to be considered for the in-residence program just completed a few weeks ago. Once the cohort has been reduced from 180 applicants to 20 winners (a process that takes about four months), each winner is paired with two Silicon Valley executives who serve as mentors. Mentors and social entrepreneurs are then engaged in a series of tasks to build and refine their business plans. The effort culminates in a two-week, in-residence boot camp comprised of classes and working sessions that produce a business plan good enough to pitch to potential investors. The description of the “Class of 2012” makes for inspiring reading.

What struck me about this year’s group is that innovation does not pertain only to new products. Some does, to be sure, in particular as designs are tailored to the true needs of the local customer base, needs which are seldom met by our more advanced and complex products in the developed world. But more impressive to me was to see the innovations in other aspects of the product life cycle, such as in creative distribution approaches to serve the market. This is especially important in the very difficult last mile, where our social entrepreneurs labor under political and logistical circumstances that would challenge the best among us!

So I want to encourage our eager young university students, when they consider their careers, to tackle the exciting and essential initiatives needed to create potable water, clean energy, plentiful food and better health care for this world. And if the entrepreneurial spirit calls, take the plunge – even if the journey to success takes years, not just months, and requires Malcolm Gladwell’s ”10,000 hours”, not just a flash of an idea and a quick 12-month development cycle. (See my Dec 1, 2010 post “Are Your Start-up Ideas Good Enough?)