General


I often get asked by students about how to be an entrepreneur or what courses to take to get into startup life.   I won’t dip my toe into the murky pool that is our education system and its shortcomings in educating of the next generation of entrepreneurs.

Students today are graduating into an environment where jobs are scarce. This advice delivered yesterday by President Obama in his commencement speech at Arizona State University was worthwhile advice for any student of life.

I particularly enjoyed his focus on service to society and the role of entrepreneurs to improve the lives of those around them through innovation.

Part 1

Part 2

Part 3

The full text of his speech can be found here.

failwhale

I love Twitter and am fascinated by the ecosystem that Evan, Biz and the team at Twitter have created around the popular microblogging service.  While many people on the sidelines are obsessed with when Twitter will make money, I see nothing but great opportunities ahead for the Twitter team.  (Disclosure: I’m an investor in Identi.ca - an open source microblogging service.)

Twitter is also undeniably the hottest startup out there today. It’s got plenty of money, and more mainstream press than any startup has received in a very, very long time. The times I’ve met Evan I’ve been impressed with his ability to stay out of the echo chamber that surrounds the popular service (As an entrepreneur Evan’s got class).

My affection for Twitter is also the source of my concerns for the Twitter team as I saw the signs of fail whales to come on their recruiting page.

Let me explain.  During the last Internet boom & crash I was the CEO of Zero-Knowledge Systems, a company that was also a media darling with tons of money and attention to go with it.   Like Twitter we defied the trends in the industry when we raised $22 million at record valuations nine months after the dot com crash had begun to sweep through the tech industry.   (This was after having just raised $25 million the year before. Unlike Twitter we did not have a successful product and it took us a number of years to turn the company into the success it is today.)

Throughout 1998-2002 we had employees from around the world desperately trying to join the company to be part of our dot.com dream.  One of the many mistakes we made was hiring too quickly as our staff rolls grew to over 200 people.

The Problems with Twitter’s Recruiting Drive

Twitter no doubt needs to hire.  Here’s Twitter’s career site: http://twitter.com/jobs

Twitter has almost 15 open positions listed which according to reported numbers would be a 35% increase in their current headcount.

Despite their ability to recruit people like high profile people from the Google campus Twitter falls far behind its Mountain View rival for talent in a critical aspect of HR: employment branding.

Google has a long history of strong employment branding. They’ve won awards for being a top employer, and received plenty of press – not just for the lavish perks, but also for the way they recruit.  Google may have many problems inside the Googleplex (crazy cash flow hides many problems), but their attention to advertising what it takes to be hired by them has served them well as they grew.

Google’s attention to its employer brand started very early on, and has been pervasive throughout its growth. Even as the most popular darling of the Internet world, it remained focused on its brand – a rigorous recruiting process, lots of perks, unique value proposition and only hiring the absolute best.

So what about Twitter?

As one of the hottest startups in the Valley hiring while unemployment rates continue to rise Twitter needs to be vigilant about guarding their culture.  To do this they need a concerted effort to ensure only the best candidates enter their hiring funnel.

Despite this attention in the middle of an economic downturn Twitter appears to have a lack of any focus on employment branding.

Some might argue that given Twitter’s popularity they don’t need to focus on their employment brand; they don’t need to promote their internal culture more effectively and focus on publicly attracting the best. I’m sure Twitter wants to hire the best (and has the dollars and buzz to help them do so), but it takes a more concerted, ongoing effort. Just look at Google…

Much of a company’s public-facing employer brand starts with its career site. (Disclaimer: I’m an investor and co-Founder of Standout Jobs - http://standoutjobs.com - which helps companies with their career sites and recruitment. But this post isn’t about vendor selection or products as much as it’s about the importance of strong employer branding and developing a rigorous culture of recruiting.)

Although Twitter’s made some effort to include cultural content on the site, it’s lacking. As much as I think I know what it’s like to work at Twitter, or I can imagine it, I don’t really get the picture I want from their site. They don’t even provide a roll up of recent tweets from their employees like Zappos & employee culture genius Tony Hsieh does.

Worst still, are the job descriptions they use. They’re about as generic as job descriptions come looking like they were haphazardly copied from some other boring job advertisement on some average job board.

If you look at the job posting for Product Manager or Software Engineer (arguably two of the most important roles in a software company) there is nothing there that discourages anyone with the minimum requirements from throwing their hat in the ring.   The amount of investment that goes into a unique & specific job description tells candidates how important you take finding the best fit.   When you copy a weak job description you send the signal that you are too busy to take hiring seriously.

As important as the cultural information and the job descriptions is the need for more information on the recruitment process and what Twitter wants to see from applicants. One of the goals with this kind of information is to help job seekers self-select. I’m sure Twitter doesn’t have a problem getting a large volume of applications, but quality is another story. Allowing applicants to self-select by making sure they understand more about the recruitment process and expectations can help weed people out before they even apply.

Compare the Twitter job descriptions with the job descriptions I recently posted for a UX Designer for my company Akoha.   Another great exampleis the job description that my friend Alistair Croll listed for a Program Manager.  In both cases candidates have a clear picture of what will be expected of them, hopefully a sense of the companies mission and most importantly a number of explicit requirements that allow candidates to self-select whether they believe they are qualified for the role.

Twitter has changed the way many of us communicate on a daily basis. You can pack so much into 140 characters. And yet, the Twitter application process is multiple steps and driven almost exclusively by a person’s resume. Boring. Twitter can’t be hiring based off resumes, I’m sure they’re looking for so much more, and yet that’s not reflected in the application process. There’s so much opportunity for creativity when it comes to recruiting, but too few companies – Twitter included – take advantage. And it’s not enough to rely on their own popularity to attract the best, they need to publicly cultivate and promote a strong employer brand that’s pervasive through everything they do.

Hiring your next fail whale.

I’m sure that Twitter can’t keep up with the volume of applicants attempting to get in on the ground floor of the company.   With the only requirement to apply being a resume and basic qualifications there may be a few incredible candidates in their funnel, but I’m sure for the hiring team it is like finding a needle in a haystack.

Having set the bar so low publicly puts all the burden on Twitter to screen and find the best candidates.   Many candidates will probably never get a call back or hear from the company (In my test attempt to apply I didn’t even get an automated thank you email, one of the most frustrating experiences for candidates applying into a black hole)

This overflow of candidates means that Twitter will,

  • Spend too much time reviewing mountains of candidate applications using resumes as the way to screen candidates.
  • Miss potentially great candidates who get lost in the noise and are not elevated to the top of the hiring pool by the hiring process.
  • Invest too much of their teams time on 2nd tier candidates who can write fancy resumes and may have been in the vicinity of success instead of the creators of it.
  • Stretch out hiring time frames which makes topgrading a difficult exercise since candidates cannot be ranked during a constrained timeframe allowing you to pick the best.
  • Reduce the amount of time you can spend assessing cultural fit in your interview process.
  • Start to make compromises on hiring candidates as the time to fill critical positions continues to increase.
  • Increase the chance that a few bad apples will enter the company at a critical time.

While the momentum of Twitter may seem unstoppable, I know first hand how quick a few bad hires can contribute to a company losing its way. Many of the worst mistakes I’ve made in my career can be traced to making compromises in my hiring practices.

At a time when Twitter needs to be accelerating to fulfill their potential their public hiring practices seem to be indications of future fail whales to come.

A great example of hiring practices is how my friend Andy Nulman screens candidates read this interview or this great story of his hiring practices.

I’ve been away from blogging for a couple of months lately working on my dream, Akoha.

Despite that I had to post this video in honor of Dr. Randy Pausch who died today after a battle with pancreatic cancer.   Having lost a family member to a similar type of cancer I felt a personal connection with Randy’s battle since I heard his speech last September.

Randy in the final year of his life became world famous through YouTube broadcast of his lecture, an ABC News special that Diane Sawyer did on his story and published a book about his Last Lecture In the end more then three million people have watched his lecture in the last year and he has influenced so many people in sharing the story of his life.

An incredible story from an inspirational man.  He will be missed.

One of my favorite talk at TED in recent years was Sir. Ken Robinson’s talk during TED 2006 on how our education system is many times failing to equip children with the tools they need for creativity.

This was particularly relevant to me since I was one of those children who was most often getting sent to the principals office. After years of “Could do great if he applied himself” I left school when I was 15 and didn’t return until I was 17. By the time I matured a bit I was able to focus myself and did fairly well until I left high school just shy of graduating to start my first company.

The original TED talk became quite a phenomena online and is still one of the most popular TED talks I hear people talk about.

Here is the original talk from TED 2006 by Sir. Ken Robinson.

At TED last year I had the opportunity to speak with Ken and ask him about his work, the affect of his TED talks video popularity and some of the work he is doing to help improve the education system. Here is the video. (The video quality is a bit poor due to a lousy camera I’ve since gotten rid of)

  • 11:07 At the office getting some work done on a demo release we are working on. #

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  • 12:45 On my way to a spa with my girlfriend and a nice evening dinner with friends in cottage country. #
  • 13:06 Can you build a Valley ecosystem out of the Valley? Good post by Ben Yoskovitz tinyurl.com/2pet6q #
  • 13:07 I got quoted in an article on networking with Facebook & Linkedin. Good thing my real quote didn’t make it in tinyurl.com/376q8k #
  • 13:09 Quote was "While you can do business in a nightclub there is a reason people still work @ offices. re: Context of Facebook vs. LinkedIn" #
  • 13:16 Off to cottage country. A nice evening away from the computer is overdue. #

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I saw the story on VentureBeat about local entrepreneur Rocky Mirza and his company Weblo raising $3.3 million from VantagePoint Venture partners.

I didn’t get Weblo at first, but I had a chance to meet with Rocky a couple of months ago and I was surprised at how much the concept makes sense. Rocky’s a great local serial entrepreneur with a number of succesfull web companies to his credit.

Our networks are becoming social playgrounds. When adults play, they often like to play with real toys and real money. Consider Weblo a grown up version of Monopoly built around real properties. I think there is an cool alternate reality gaming component to this service. There is a fictional story, that involves real world elements and creates interactions and play among its members. The play may be no more legitimate then someone making money selling virtual goods in any number of the social worlds getting attention, but as long as people want to play with others the community will create the economy.

Congratulations to both Rocky and the team at VantagePoint Venture Partners.

MontrealTech Watch has a post up discussing the service.

One of my favorite highlights of TED are the conversations with the incredible people who attend.  David Hornik, who before becoming VC extrodinaire and gracing the pages of Business 2.0 (check your current issue) was my lawyer and mentor when I first went to the Valley, organizes a great dinner party every year with his partners at August Capital.

Here are some fun highlights from last night’s dinner and various tidbits of conversations I’ve been having with various friends both old and new.

  • My old friend author and journalist Steven Levy (who wrote about my last company in his book Crypto) entertained us with the story how he found Einstein’s brain as a young reporter. Hilarious.
  • Loic and I had a great laugh about blogstorms. Loic is becoming the accidental king of blogstorms and he has the best sense of humor about the some of the blowback that comes from living publicly in the blog world.  Loic just makes me laugh.
  • Jeff Clavier (who invested $15 million in Zero-Knowledge when he was at Reuters Venture Capital) and I laughed about all sorts of fun stuff. We spoke about his great strings of investments including Dogster and how to build communities online. Jeff also graces the pages of Buisness 2.0 (along with Reid, David and other Web 2.0 angels) and he’s giving me some tips on angel investing :)
  • Reid Hoffman is one of the most generous entrepreneurs, angel investors and one of the most brilliant product strategistists there are in the social media space. We laughed about who is the “Sexiest Angel Investor” in the valley. I won’t tell you what I think, but if you know Reid ask him about my theory on who the sexiest angel investor is. Reid also has the best stories of interesting business proposals he gets. Sometimes they extend beyond business proposals :)
  • John Doerr and I got caught up yesterday. He gave the most compelling TED presentation on the need to address climate collapse and hosted an incredible breakfast meeting to help instigate and promote postive action for the environment. He is helping Ron Dembo and I with a new project involving the environment that I’m involved with. John is an incredible sales person and a man of action. When he talks about change, it is with conviction and the power of action which gives him credibility that few people enjoy.

This is just an update. When I have time I’ll post the video interviews I did with my childhood hero James Randi, or last years TED talk superstar hit Sir Ken Robinson.

Two different Microsoft employees just showcased some new research coming from Microsoft including Virtual Earth with rich 3D models with hi-res photo’s to help build richer textured models, Photosynth and their Seadragon projects.

This stuff is groundbreaking and visually stunning. They are showed a Flickr mash up that grabbed all pictures on Flickr for the Notre-Damn catherderal and automatically mapped it to a digital model with point of view references to create a collaborative photo mash-up of the building by analyzing point of view and pasting the right pictures to the proper part of the 3-D model.

Absolutely phenomonal stuff. Any pictures you share on the Internet (via Flickr) could start to be linked together and applied on a rich digital reference model of the earth.

I’m glad to see Microsoft sending out some ambassadors who are showing how some of the billions they spent on R&D is being put to good use. Both employees got a warm reception and were funny and self effacing about Microsoft presenting during the Simplicity session at TED.

It will be an interesting couple of years to see how this rolls out.

It is my firm believe that when we begin to visualize the earth as it really is, we will begin to see just how small and fragile this planet is. Perhaps we will being to see how we are all enjoying or suffering the same human condition.

Once this happens maybe the other 6 billion people on the planet will be seen more as neighbours carpooling into the future with us, rather than in the “Us vs. Them” mentality that dominates our cultural egoism in the West.

Perhaps where we are born will no longer dictate our life span or the chance for freedom and happiness.

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