Category: Entrepreneurship

Zuckerberg: ”Filmmakers Can’t Get Their Head around the Idea that Someone Might Build Something because They Like Building Things”

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Marc Andreessen. Source of photo: online version of the NYT article quoted and cited below.

(p. 13) After hearing a story about Foursquare’s co-founder, Dennis Crowley, walking into a press event in athletic wear and eating a banana, I developed a theory that bubbles might be predicted by fashion: when tech founders can’t be bothered to appear businesslike, the power has shifted too much in their favor.

Believe it or not, this goes deep into the interior mentality of the engineer, which is very truth-oriented. When you’re dealing with machines or anything that you build, it either works or it doesn’t, no matter how good of a salesman you are. So engineers not only don’t care about the surface appearance, but they view attempts to kind of be fake on the surface as fundamentally dishonest.

That reminds me of Mark Zuckerberg’s criticism of ”The Social Network.” He said that ”filmmakers can’t get their head around the idea that someone might build something because they like building things.”

Aaron Sorkin was completely unable to understand the actual psychology of Mark or of Facebook. He can’t conceive of a world where social status or getting laid or, for that matter, doing drugs, is not the most important thing.

For the full interview, see:
ANDREW GOLDMAN. “TALK; Bubble? What Bubble? Marc Andreessen, one of Silicon Valley’s biggest venture capitalists, has no fear.” The New York Times Magazine (Sun., July 10, 2011): 13.
(Note: bold in original, indicating comments/questions by interviewer Andrew Goldman.)
(Note: the online version of the interview is dated July 7, 2011 (sic).)

“If We Can’t Win on Quality, We Shouldn’t Win at All”

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Source of book image: online version of the WSJ review quoted and cited below.

(p. A13) At the tail end of the 1990s dot-com boom, Douglas Edwards took a gamble: He left his marketing job at an old-media company, taking a $25,000 salary cut to start work at a small, little-known Internet concern in its second year of operation. That his new employer was losing money and burning through venture capital went without saying. But unlike the footloose 20-somethings who usually populated Silicon Valley start-ups, Mr. Edwards had little margin to bet wrong; he was 41, with a mortgage, three children and a worried wife. He hoped he could get his old job back if the company ran out of money.

. . .
Mr. Edwards came to his job as a subscriber to the conventional wisdom. In an early presentation to cofounder Larry Page and others, Mr. Edwards unwisely declared that only marketing, not technology, could set Google apart. “In a world where all search engines are equal,” he asserted, “we’ll need to rely on branding to differentiate us from our competitors.”
The room became quiet. Then Mr. Page spoke up. “If we can’t win on quality,” he said, “we shouldn’t win at all.”

For the full review, see:
DAVID A. PRICE. “BOOKSHELF; How Google Got Going; Branding, shmanding, a marketer was told. ‘If we can’t win on quality,’ Larry Page said, ‘we shouldn’t win at all.'” The Wall Street Journal (Tues., July 12, 2011): A13.
(Note: ellipsis added.)

Book being reviewed:
Edwards, Douglas. I’m Feeling Lucky: The Confessions of Google Employee Number 59. New York: Houghton Mifflin Harcourt Publishing Co., 2011.

Private ADP Job Data May Better Capture Startup Job Growth than Government Data

“ADP” in the quote below, stands for Automatic Data Processing Inc. which is a large payroll processing firm that provides job growth data that are an alternative to the official Bureau of Labor Statistics numbers. Recent research by Haltiwanger and others, has indicated that startups may have an under-appreciated large role in job growth.

(p. C1) It has been dubbed “Another Dumb Payroll” report and a “random number generator.” But the ADP employment report doesn’t entirely deserve its bad rap.

. . .
ADP may better capture . . . new business formation than Labor Department estimates. BofA Merrill Lynch economist Michelle Meyer notes that new firms show up in ADP data after two months of existence; the government doesn’t have complete records until much later. Indeed, more than half the 187,000 new jobs ADP reported last month came from businesses with fewer than 50 employees.

For the full story, see:
KELLY EVANS. “AHEAD OF THE TAPE; Respect for ADP: Jobs Picture Is Brighter.” The Wall Street Journal (Tues., FEBRUARY 4, 2011): C1.
(Note: ellipses added.)
(Note: the online version of the story has the title “AHEAD OF THE TAPE; Respect for ADP: Jobs Picture Is Brighter Than Thought.”)

For some of the work showing the importance of startups in job creation, see:
Haltiwanger, John C., Ron S. Jarmin, and Javier Jarmin. “Who Creates Jobs? Small Vs. Large Vs. Young.” NBER Working Paper # 16300, August 2010.

Google CEO Larry Page Admires Steve Jobs

BrinPageSchmidtGoogle2011-06-05.jpg “Former colleagues describe Larry Page, center, as strong-willed and sometimes impolite. He is said to admire Apple CEO Steve Jobs.” Source of caption and photo: online version of the WSJ article quoted and cited below.

(p. B1) Larry Page’s PageRank algorithm was the basis for Google Inc.’s search engine. As Google’s new chief executive, Mr. Page will face the challenge of leading a company that has grown far beyond that algorithm and must compete with agile Web upstarts such as Facebook Inc. and Groupon Inc.

On Friday, a day after being named to replace outgoing CEO Eric Schmidt in April, Mr. Page gave little hint of how he planned to tackle such challenges. The 38-year-old Google co-founder didn’t immediately address employees in an all-hands note or meeting, said a person familiar with the matter, though the company has a weekly Friday meeting that Mr. Page was expected to attend.
But several of Mr. Page’s former colleagues describe him as having similarities to Apple CEO Steve Jobs, whom Mr. Page has said he admired. Both men are strong willed, sometimes impolite and push engineers hard to execute their ambitious projects.
Some former colleagues said Mr. Page is likely to try to pierce through the sometimes “paralyzing” bureaucracy that product managers and engineers have faced when trying to launch some Google products in recent years.
On Thursday, Messrs. Page and Schmidt said some top-level decision-making had gotten slower and the management change would improve that. Also, the company has said it is trying to allow more projects to operate like start-ups inside of Google in order to speed up innovation.

For the full story, see:
AMIR EFRATI and SCOTT MORRISON. “TECHNOLOGY; Chief Seeks More Agile Google; As CEO, Larry Page Must Pierce Bureaucracy, Compete With Nimble Upstarts.” The Wall Street Journal (Tues., January 22, 2011): B1 & B4.

Steve Jobs as Project Entrepreneur

JobsSteveIpadIntroduction2011-06-05.jpg “Steve Jobs’s presence at the unveiling seemed to reassure investors.” Source of caption and photo: online version of the NYT article quoted and cited below.

Innovative entrepreneurs can have several different motives. I think Steve Jobs is mainly a “project entrepreneur”—his main motive is to envision a project and to accomplish it.

(p. B1) SAN FRANCISCO — Steven P. Jobs, Apple’s chief executive, interrupted his medical leave on Wednesday to introduce the company’s much-anticipated new iPad, a thinner, faster and lighter version of its popular tablet computer that will sell at the same prices as the original models.

Mr. Jobs alluded to his leave but neither commented on his health nor said whether he planned to return to the company in the near future.
“We’ve been working on this product for a while and I just didn’t want to miss today,” he said.

For the full story, see:
MIGUEL HELFT. “Jobs Returns to Introduce a New iPad.” The New York Times (Thurs., March 3, 2011): B1 & B6.
(Note: the online version of the commentary is dated March 2, 2011 and has the title “Jobs Returns to Introduce a New iPad.”)

At NeXT Steve Jobs Learned to Delegate, Retain Talent, and Attend to the Price

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“Steve Jobs, after returning to Apple in 1999. Would Apple be what it is today had he never left?” Source of caption and photo: online version of the NYT article quoted and cited below.

(p. 5) Suppose Mr. Jobs had not left in 1985. Suppose he had convinced the Apple board to oust his nemesis, John Sculley, then chief executive and president. Under Mr. Jobs’s uninterrupted direction, would Apple have arrived at the pinnacle it has reached today, but 12 years earlier?

It’s hard to see how anything like that would have transpired. The Steve Jobs who returned to Apple was a much more capable leader — precisely because he had been badly banged up. He had spent 12 tumultuous, painful years failing to find a way to make the new company profitable.
“I am convinced that he would not have been as successful after his return at Apple if he hadn’t gone through his wilderness experience at Next,” said Tim Bajarin, president of Creative Strategies, a technology consulting company.
. . .
Mr. Jobs’s lieutenants tried to warn him away from certain disaster, but he was not receptive. In 1992-93, seven of nine Next vice presidents were shown the door or left on their own.
In this period, Mr. Jobs did not do much delegating. Almost every aspect of the machine — including the finish on interior screws — was his domain. The interior furnishings of Next’s offices, a stunning design showplace, were Mr. Jobs’s concern, too. While the company’s strategy begged to be re-examined, Mr. Jobs attended to other matters. I spoke with many current and former Next employees for my 1993 book, “Steve Jobs and the NeXT Big Thing.” According to one of them, while a delegation of visiting Businessland executives waited on the sidewalk, Mr. Jobs spent 20 minutes directing the landscaping crew on the exact placement of the sprinkler heads.
Next’s computer hardware and software were filled with innovations that drew a small, but devoted, following. Mr. Jobs had created the first easy-to-use Unix machine, but the mainstream marketplace shrugged. He had already helped bring to market an easy-to-use machine, the Mac, so the Next couldn’t differentiate itself enough — and certainly not at the price the company charged.
. . .
And he had always been able to attract great talent. What he hadn’t learned before returning to Apple, however, was the necessity of retaining it. He has now done so. One of the unremarked aspects of Apple’s recent story is the stability of the executive team — no curb filled with dumped managers.
Kevin Compton, who was a senior executive at Businessland during the Next years, described Mr. Jobs after returning to Apple: “He’s the same Steve in his passion for excellence, but a new Steve in his understanding of how to empower a large company to realize his vision.” Mr. Jobs had learned from Next not to try to do everything himself, Mr. Compton said.

For the full commentary, see:
RANDALL STROSS. “DIGITAL DOMAIN; What Steve Jobs Learned in the Wilderness.” The New York Times, SundayBusiness Section (Sun., October 3, 2010): 5.
(Note: ellipses added.)
(Note: the online version of the commentary is dated October 2, 2010.)

“The Century’s Most Daring and Iconic Building Was Entrusted to a Gardener”

(p. 10) . . . the risks were considerable and keenly felt, yet after only a few days of fretful hesitation the commissioners approved Paxton’s plan. Nothing–really, absolutely nothing–says more about Victorian Britain and its capacity for brilliance than that the century’s most daring and iconic building was entrusted to a gardener. Paxton’s Crystal Palace required no bricks at all–indeed, no mortar, no cement, no foundations. It was just bolted together and sat on the ground like a tent. This was not merely an (p. 11) ingenious solution to a monumental challenge but also a radical departure from anything that had ever been tried before.

Source:
Bryson, Bill. At Home: A Short History of Private Life. New York: Doubleday, 2010.
(Note: ellipsis added.)

Moral: In a Crisis You Need Resilience and the Ability to Improvise More than You Need Detailed Advance Plans

(p. D1) When the Three Mile Island nuclear generating station along the Susquehanna River seemed on the verge of a full meltdown in March 1979, Gov. Richard L. Thornburgh of Pennsylvania asked a trusted aide to make sure that the evacuation plans for the surrounding counties would work.

The aide came back ashen faced. Dauphin County, on the eastern shore of the river, planned to send its populace west to safety over the Harvey Taylor Bridge.

“All well and good,” Mr. Thornburgh said in a recent speech, “except for the fact that Cumberland County on the west shore of the river had adopted an evacuation plan that would funnel all exiting traffic eastbound over — you guessed it — the same Harvey Taylor Bridge.”

. . .
(p. D4) Brian Wolshon, the director of the Gulf Coast Center for Evacuation and Transportation Resiliency, said that he was analyzing one county’s emergency plans that seemed to have every detail covered.

“It was a wonderful report, with plans to move senior citizens out of care facilities and even out of hospitals, and they had signed contracts with bus and ambulance providers,” said Dr. Wolshon, who is also a professor at Louisiana State University. “But that same low-cost provider had the same contract with the county next door, and they had the capacity to evacuate only one of these counties.”

For the full story, see:
GARDINER HARRIS. “Dangers of Leaving No Resident Behind.” The New York Times (Tues., March 22, 2011): D1 & D4.
(Note: the online version of the article is dated March 21, 2011.)

Entrepreneur Defends His Store with Gun

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“Anthony Spinelli, outside his store in the Bronx on Thursday, was called brave for shooting a man suspected of trying to rob his shop.” Source of caption and photo: online version of the NYT article quoted and cited below.

(p. A23) On Arthur Avenue, a group of men piled out of Pasquale’s Rigoletto restaurant onto the sidewalk to pay their respects to a sudden local hero.

“Anthony, we love you,” they shouted across the street.
They summed up the local sentiment about a man, Anthony Spinelli, celebrated for protecting his livelihood. On Wednesday, Mr. Spinelli pulled one of two licensed guns in the store, and shot one of the three people suspected of trying to rob his Arthur Avenue jewelry store at gunpoint.
The Bronx neighborhood seemed energized by the event, which people here saw as a testament to the toughness of one of the last Italian neighborhoods in New York City.
“You don’t come in and try to take a man’s livelihood,” said Nick Lousido, who called himself a neighborhood regular. “His family’s store has 50 years on this block, they’re going to come in and rob him?”
On Thursday, Mr. Spinelli, 49, had returned to his shop and sized up the broken front windows and the mess inside. He said that a man and woman had entered his store, and the man had held a gun to his head while the woman had gone through jewelry drawers and stuffed jewelry into a bag. He said he had feared for his life, and that he was still shaken.
. . .
Next door to Mr. Spinelli’s shop is M & M Painter Supplies, which has photographs of Pope John Paul II and Mother Teresa next to a paint color chart on the wall.
“He’s a very brave man,” said the store owner, Ernie Verino. “He had the gun, and it takes guts to use it.”

For the full story, see:
COREY KILGANNON. “Merchant Shooting to Defend His Store Is Celebrated as Hero of Arthur Avenue.” The New York Times (Fri., February 18, 2011): A23.
(Note: ellipsis added.)
(Note: the online version of the article is dated February 17, 2011 and has the title “After Shooting, Merchant Is Hero of Arthur Avenue.”)