Lessons in Leadership: Tim Tebow

There have been many great football players over the years.  But, very few have had that additional "X Factor" which propel them and their teams to even greater heights, as demonstrated by Tim Tebow, the quarterback of the Florida Gators from 2006-2009 and the current starting quarterback of the Denver Broncos.  I think that "X Factor" in leadership is worth talking about, as it applies to people in business, as well as sports.

First, a few stats on Tebow.  While a player at Florida, the Gators acheived an impressive 48-7 record between 2006 to 2009 (a meteoric 87% win rate), led by the play of Tebow.  The Gators won two national championships during this time (2006 and 2008) and Tebow won the Heisman Trophy for the best player in college football in 2007, the first time a sophomore ever won the award.  When you watched Tebow play, especially with the game on the line, he just oozed confidence and leadership.

And, as for his young pro career, Tebow took over as the starting quarterback for the Denver Broncos mid-season in 2011.  He helped to turn a struggling 1-4 team, into an 8-8 divisional champion (7-3 Tebow record), that believed in itself and unexpectedly made the playoffs and knocked off the perennially great 12-4 Pittsburgh Steelers last night in a thrilling OT win (capped off by a walk-off touchdown pass by Tebow to end the game).  Tebow has not always played great during the entirety of these games (often ugly for three quarters and amazing in the final quarter that matters).  But, he does enough to lead his team to a win, often in thrilling fashion, which is what matters most.

Although the stats speak for themselves, they are not what is most impressive about Tebow.  It is his leadership abilities and deep religious convictions that overcome his unorthodox playing style, often criticized for not being good enough to succeed in the NFL (e.g., relies too much on running, weak throwing arm, awkward throwing motion).  But, Tebow doesn't listen to his critics, which amazingly includes some of his bosses, like John Elway, the former great Bronco QB and current EVP of Football Operations for the Broncos.  He just plays with a sense of confidence and conviction, regardless of what people say, or whether his in-game statistics fall short.  He simply wills his team to victory, either with skill or divine intervention.  His now famous praying position on one knee has become a word of its own ("Tebowing"), and is now being copied by people across the country.

But, what is most impressive, is the effect Tebow has on his teammates.  They are often quoted as saying there is no one they would rather follow into battle than Tebow.  Tebow's energy is infectious.  Tebow's hard work ethic and playing style, earn the respect of his peers.  And, even Tebow's religious conviction is rubbing off on his teammates, which is amazing in a 21st century sports world which is more typically driven by players with big egos commanding big paychecks.

I don't know if Tebow will be able to maintain his NFL success, or even his starting QB position, in the coming years, or not.  Especially, when rocket arm and accurate passers like Tom Brady, Peyton Manning, Drew Brees and Aaron Rodgers have proven to be the protypical model for success in the NFL.  But, what I do know is, Tebow is a proven leader, that will succeed at whatever he does, commanding the respect of his peers.  And, Tebow is driven by a calling that is greater than his own, making him a great person and proven philanthropist for those in need.  What a great role model for aspiring athletes and young entrepreneurs, alike.

So, the key business lessons here, are that great leaders know how to: (i) find ways to overcome their own shortfallings, especially when it matters most; (ii) tune out their critics and believe in their own abilities; (iii) communicate with, and drive the best performance out of, their team; and, most importantly; (iv) they know how to win, regardless the odds or the headwind in their face.

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Lessons in Leadership: The Race for the South Pole

I have always been fascinated by the polar explorers, boldly going where no one had gone before (much like startups).  After the North Pole was conquered by American Admiral Robert Peary in 1909, that left only one pole yet to conquer: the South Pole.  After a bold attempt, but failed effort, by Britain's Ernest Shackleton in 1909, the conquering of the South Pole ended up a thrilling footrace between Britain's Robert Falcon Scott and Norway's Roald Amundsen in 1910 and 1911.  But, the two explorers couldn't have been more different in their styles, approach and outcome.

Let's start with Scott, the British Navy Admiral, leading a British sponsored expedition under the primary mandate of scientific research and exploration (the only way the expedition could get government funding).  Although attainment of the South Pole was a goal, it was not the only priority of the expedition.  Scott was a military man with sailing experience in the polar region, but wasn't natively a polar land explorer.  So, using the best judgment of the British Navy, they decided to use mechanical sledges and horses, to carry the expedition to the pole.  Especially, since they would be needed to carry the heavy scientific equipment needed for the research portion of the expedition.  This expedition was highly publicized and the world was watching.

On the other hand was Amundsen, a proven polar explorer in Greenland, the Northwest Passage, Antarctica and elsewhere, who had fine tuned his polar survival and travel skills.  He knew the importance of sled dogs for speed and the native clothing and equipment best suited for hostile weather and environmental conditions.  And, more importantly, he was a man born to explore from his early years.  He wanted his legacy to be known as one of the world's greatest explorers.  If he couldn't have the North Pole, he'd better get the South Pole, and fast, to forever cement his legacy.  And, he certainly knew the element of surprise, basically hijacking a ship and crew heading for the North Pole on a scientific expedition, and redirecting it to the South Pole with the sole objective of getting to the pole before Scott and the British Expedition.  You can imagine Scott's surprise when he got a telegram from Amundson announcing that they were both wintering on Antarctica at the same time, and in essence, the race for the South Pole was on!!

Long story short, Amundsen won the race to the South Pole, beating Scott by four weeks, despite starting the expedition many weeks after Scott (so he made up 7-8 weeks in total).  You can imagine Scott's disappointment seeing the Norwegian flag planted at the pole upon his arrival.  And, to make matters worse, Scott and his crew, who had suffered so much in getting to the pole due to poor planning and equipment (forcing them to man-haul their way to the pole when the horses and sledges gave out), died a few weeks later on their return trip, largely due to starvation and not being able to find their food supply depot in storm conditions (a short 11 miles away).  Amundsen returned to Norway as a national hero (but was largely forgotten over the years), and Scott ended up frozen in the Antarctica ice (but, is forever remembered as one of Britain's beloved failures).

For a good read on this race for the South Pole and the different styles and personalities of Amundsen and Scott, check out Roland Huntford's, The Last Place on Earth, which does a great job of documenting the story.

There are plenty of key lessons here which may apply for your startup businesses: (i) you can't build more than one business at a time, you need a clear focus on one goal (Amundsen was solely focused on the South Pole, was wasn't bogged down with scientific research); (ii) you need to have the right assets and experienced team to get the job done (Amundsen won because he knew what to expect, and brought the right team, dogs and equipment for the conditions); (iii) the element of surprise is a huge advantage in acheiving your goals (keep your cards close to your chest until you have no choice but letting your competitors learn of your plans); (iv) know your own limitations of what is really possible or not (Scott man-hauling heavy gear over hundreds of miles in hostile conditions contributed to his demise); (v) it's not whether you win or lose, it's how you play the game (Scott is equally memorialized in lessons from failure, as Amundsen was in lessons from success); (vi) make sure you take cash from investors that share your vision (as Scott taking government funding slowed down his expedition with scientific research, and contributed to his failure); and (vii) the devil is in the details, with planning of utmost importance (if Scott had better marked his trails to the supply depot and increased his food supplies on hand in case of unexpected weather, he could have survived).  This last point sure sounds like a startup not having enough cash reserves on hand for a rainy day.

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Holiday Carol - A Few of My Favorite Things

I thought you would all enjoy a little holiday cheer this time of year.

MY FAVORITE THINGS
(sung to the holiday tune from The Sound of Music)

Collecting on eBay, and tweeting on Twitter
Surfing on iTunes, new music aglitter
Downloading fun apps for iPhone Siri
These are a few of my favorite things

Friending on Facebook, and saving with Groupon
Shopping adventures, at Abe Books and Amazon
Streaming my Netflix on PlayStation 3
These are a few of my favorite things

Watching on YouTube, and E.S.P.N.
Gaming with Zynga, and Words With My Friends
Angry Birds that will fly into most anything
These are a few of my favorite things

When PC's crash
When our stocks fall
When our boards are mad
I simply remember my favorite things
And then I don't feel so bad

[Repeat All Verses]

HAPPY HOLIDAYS!!

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Lessons from the Lost Decade: Alternative Investing

The last ten years have not been very good to the average investor or the economy: (i) the stock market has basically traded up and down within a tight range, having 401k plans flat; (ii) the real estate market has been plagued with declining home values and foreclosures; (iii) the banks are paying close to zero interest rates on cash accounts; (iv) college 529 plans have not lived up to expectations, requiring additional deposits to catch them up; (v) unemployment is probably double the reported 9% levels when you include "under employed" persons; (vi) healthcare and education costs continue to skyrocket, while salaries have been basically flat; and (vii) consumers are buried under tons of credit card debt, student loans and upside-down mortgages.  Not a pretty ten years, making it near impossible for the average person to accumulate wealth.  This may be the first generation that will actually be financially worse off than their parents' generation. 

That said, plenty of money was made, by people that knew how to take advantage of these conditions:  hedge fund managers that understood how to deal with risk, day traders playing on the high volatility and venture capitalists who bet on smart entrepreneurs with innovative new products and services.

I am challenging everybody to start to rethink their entire investment strategies.  We can't assume that conditions will be any better in the next decade than their were in the last one.  Especially since conditions could actually get worse with a global economic meltdown or fears of a double dip recession in the U.S.  Frankly, people can no longer retire comfortably at age 65, forcing them to work more years, and tying up jobs that otherwise would have opened for the next generation of workers.  And, we can't simply keep doing the "same old, same old" strategies our parents used to accumulate wealth, as those strategies are outdated, haven't worked in the last decade and may no longer work in future generations.  We must plan ahead, in new and unique ways.

It has gotten to the point that I am modeling what would happen if I liquidate my 401k and college 529 plans (both of which are tied to the broader U.S. stock market which has basically been flat for ten years), and reinvesting them more like a venture capitalist would, into early stage companies that are poised for future growth.  If the average venture capitalist experiences a 35-50% annual return on their investment, even with only 1 of 10 investments hitting it big and several startups going out of business, you can drive a materially higher long term portfolio value in the next ten years, even after paying any 10% early withdrawl penalties or required taxes.

But, venture investing is not for everybody.  Maybe you don't have that level of appetite for risk?  Maybe you are not tied into deal flow for hot startups?  Maybe you are not an accredited investor?  But, if you are open to thinking out of the box, there are plenty of websites out there that can help you get started.  This includes: (i) AngelList, the marketplace for startups and angel investors; (ii) Kickstarter, to find startups looking to crowd fund their business; and (iii) SecondMarket or SharesPost to find shares in later stage businesses, prior to their IPO (although valuations can be pretty rich).  And, don't forget to consider joining the angel investor networks in your town, like Hyde Park Angels, Cornerstone Angels, Heartland Angels and Wildcat Angels in Chicago, which do a good job of vetting quality startups for angel investors.

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[VIDEO] George Deeb Teaches Financial Modeling

Earlier this week, I had the pleasure of mentoring the inaugural class of entrepreneurs at Founder Institute Chicago.  Below is a video of the lesson I taught on "Revenues, Costs and Profits".  I thought it would be useful to the Red Rocket Blog readers, as well.

This lesson helps entrepreneurs get started with business planning, revenue modeling and financial projections, in a conservative and credible way that should help startups attract investors.  The lesson provides high level guidance on: (i) how to make money; (ii) how to build a financial model; (iii) how to scale expenses; (iv) how to attract investors; and (v) how to set key metrics for ongoing success.



George Deeb Teaches "Revenues, Costs & Profits" to Founder Institute Class from George Deeb on Vimeo.

I hope you enjoyed this video (despite the bad lighting).  And, if you desire to see more "how to" videos in the future, let me know in the comments field, and I can build some into my editorial calendar.

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Lessons in Leadership: Mount Everest

I am a Mount Everest fanatic, as an avid mountain hiker and reader.  I have always been intrigued by the various styles and personalities of people that would put their lives at risk, in trying to summit Mount Everest.  It certainly takes a special breed of person to willingly enter the Death Zone (much like founders of startups).  In this post, we are going to compare and contrast two different expeditions and management styles: (i) the failed 1924 attempt by George Mallory and Andrew Irvine, organized by  Sir Francis Younghusband; and (ii) the successful first summit attempt in 1953 by Edmund Hillary and Tenzing Norgay, organized by Sir John Hunt.

After the South Pole was successfully reached by Norwegian explorer, Roald Amundsen, in 1912,  there was only one major objective not yet acheived by explorers: successfully getting to the summit of Mount Everest, the highest point on the planet (at 29,035 feet above sea level) located on the border of Nepal and Tibet in the Himalayas.  And, in the great age of exploration, as empassioned by many great British explorers (e.g., David Livingstone, Robert Falcon Scott, Ernest Shackleton), Britain was determined to get a team to the summit first.

So, in 1921 and 1922, Britain sent two reconnaisance expeditions into the Everest region, both of which included George Mallory.  The expeditions were tasked with mapping a route into uncharted territory (in 1921) and for finding a navigable path to the summit (in 1922).  With such objectives acheived, the British launched their first formal summit attempt in 1924.

The 1924 Expedition is best summarized as an incredible feat for its day (given the inadequate equipment involved), but ended in tragedy with the deaths of four members of the expedition, including George Mallory and Andrew Irvine, who were last seen around 800 feet from the summit  (so close to their objective) before a storm rolled in and they were lost forever.  The 1924 Expedition is well detailed in "The Epic of Mount Everest" by expedition leader, Sir Francis Younghusband.  It very much reads like a romance novel from the great age of exploration, with George Mallory famously saying he wanted to climb Mount Everest "because it is there."

In comparison, we have the 1953 Expedition that got Edmund Hillary and Tenzing Norgay successfully up to the summit and back, with no deaths on the expedition.  It was the culmination of thirteen preceding failed attempts by the British, Americans and Swiss over a thirty year period.  The 1953 Expedition is well detailed in "The Conquest of Mount Everest" by expedition leader, Sir John Hunt.  It very much reads like a military war plan, with detailed logistics on moving all the required people, food and state-of-the-art equipment into the region, and up and down the mountain.  In comparison to the 1924 Expedition, it is pretty self-explanatory which approach worked best.  The British finally acheived their goal, but only after decades of learnings and failures that preceded it.

So, when building your startups, if this lesson has taught us anything, passion by itself will take you a long way.  But, it is not enough to always get you to the finish line.  You need to have good tutelage and wisdom from mentors that have "been there, and done that", who can help you build a better "blue print" than you could build by yourself.  The 1953 Expedition was successful, in large part, due to the learnings and failures of the 1924 and other expeditions that preceded it.  Who are your mentors that can help set your successful path to the summit??

And, secondarily, startup success can only be achieved with a crystal clear vision about what your mission is.  The 1924 Expedition meandered between exploration and scientific research objectives.  And, the 1953 Expedition was solely focused on getting a climbing team successfully up to the summit (and back!!).  So, make sure you and your team are firmly focused on the mission at hand with clearly communicated and agreed upon objectives.

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