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Through the Looking Glass: Hiring Sales People

Perhaps the most common mistake that I see a technical founder make when building her sales organization is she applies strategies that worked in building the engineering team to the sales hiring process. This may sound shocking, but sales people are different than engineers and treating them like engineers does not work well at all.…

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Staying Great

As CEO, you know that you cannot build a world-class company unless you maintain a world-class team. But how do you know if an executive is world-class? Beyond that, if she was world-class when you hired her, will she stay world-class? If she doesn’t, will she become world-class again? These are complex questions and are…

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Programming Your Culture

Ask 10 founders about company culture and what it means and you’ll get 10 different answers. It’s about office design, it’s about screening out the wrong kinds of employees, it’s about values, it’s about fun, it’s about alignment, it’s about finding like-minded employees, it’s about being cult-like. So what is culture? Does culture matter? If…

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Old People

Your startup is going well and as your business expands, you hear the dreaded words from someone on your board: “You need to hire some senior people. Some real ‘been there, done that’ executives to help you get the company to the next level.” Really? Is now the time? If so, where do I begin?…

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Making Yourself a CEO

The other day, a friend of mine asked me whether CEOs were born or made. I said, “That’s kind of like asking if Jolly Ranchers are grown or made. CEO is a very unnatural job.” After saying it and seeing the surprised look on his face, I realized that perhaps it wasn’t as obvious as…

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One on One

After I wrote A Good Place to Work, people flooded me with feedback about one-on-ones. About half the responders chastised me, saying that one-on-ones were useless and that I shouldn’t put so much emphasis on them. The other half wanted to know how to run more effective one-on-ones. It seems to me that both groups…

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A Good Place to Work

At Opsware I used to teach a management expectations course because I deeply believed in training. In it, I made it clear that I expected every manager to meet with her people on a regular basis. I even gave instructions on how to conduct a 1:1 meeting so there could be no excuses. Then one…

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When Employees Misinterpret Managers

When I ran Opsware, we had the non-linear quarter problem also known affectionately as the hockey stick. The hockey stick refers to the shape of the revenue graph over the course of a quarter. Our hockey stick was so bad that one quarter, we booked 90% of our new bookings on the last day of…

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Titles and Promotions

Often when I meet with startups, the employees have no job titles. This makes sense, because everybody is just working to build the company. Roles needn’t be clearly defined and, in fact, can’t be, because everyone does a little bit of everything. In an environment like this there are no politics and nobody is jockeying…

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In Defense of Standards, Ethics, and Honest Financial Reporting at Hewlett-Packard

Disclaimer: my business partner, Marc Andreessen, is on the board of directors of Hewlett-Packard. I note that I have no inside information, and this blog post is based purely on published material. In 2007, I sold Opsware, the company that I founded and ran to Hewlett-Packard for $1.6B. I worked at Hewlett-Packard from 2007 to 2008 as an executive in the software business.

Recently, my old company Hewlett-Packard has been in the news—and not in a good way. I’ve been watching the coverage from the sidelines up to this point, but felt increasingly compelled to join the conversation and share my point of view. So here goes.

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The Right Way to Lay People Off

Shortly after we sold Opsware to Hewlett-Packard, I had a conversation with the legendary venture capitalist Doug Leone of Sequoia Capital. He wanted to hear the story of how we went from doomed in the eyes of the world to a $1.6B outcome with no recapitalization. After I took him through the details including several…

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How to Minimize Politics in Your Company

In all my years in business, I have yet to hear someone say: “I love corporate politics.” On the other hand, I meet plenty of people who complain bitterly about corporate politics—sometimes even in the companies they run. So, if nobody loves politics, why all the politics? Political behavior almost always starts with the CEO.…

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Taking the Mystery out of Scaling a Company

If you want to build an important company, then at some point you have to scale. People in startup land often talk about the magic of how few people built the original Google or the original Facebook, but today’s Google employs 20,000 people and today’s Facebook employs over 1,500 people. So, if you want to…

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CEOs Should Tell It Like It Is

My single biggest personal improvement as CEO occurred on the day when I stopped being too positive. As a young CEO, I felt the pressure—the pressure of employees depending on me, the pressure of not really knowing what I was doing, the pressure of being responsible for tens of millions of dollars of other people’s…

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Second Startup Syndrome

Often when super successful entrepreneurs found their second company, they suffer from a dangerous condition. In fact, the more successful the original startup, the more likely it is that the entrepreneur develops an acute case of Second Startup Syndrome. Second Startup Syndrome occurs when an entrepreneur wants to pick up in her second startup right…

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Why Startups Should Train Their People

Most managers seem to feel that training employees is a job that should be left to others.  I, on the other hand, strongly believe that the manager should do it himself. —Andy Grove, High Output Management When I first became a manager, I had mixed feelings about training. Logically, training for hi-tech companies made sense,…

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The Scale Anticipation Fallacy

The other day I was talking to a couple of friends of mine, one a VC and the other a CEO. During the meeting, we were discussing one of the executives at the CEO’s company. The executive in question performs exceptionally, but lacks experience managing at larger scale. My friend the VC innocently advised the…

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Why We Prefer Founding CEOs

When my partner Marc wrote his post describing our firm, the most controversial component of our investment strategy was our preference for founding CEOs. The conventional wisdom says a startup CEO should make way for a professional CEO once the company has achieved product-market fit. In this post, I describe why we prefer to fund…

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Why is it Hard to Bring Big Company Execs into Little Companies?

You’re a small fry and I’m a Big Ma­­c. —The Bingo Boys So you’ve achieved product market fit and you are ready to start building the company. The board encourages you to bring in some “been there done that” executives who will provide the right financial, sales and marketing expertise to help you transition from…

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Four Things Some VCs Do That I Don’t Like

“They smile in a n!*)#% face And for what They got the game f!@#^& up And want my thang f!@#^& up” —Dr. Dre After being an entrepreneur for most of my adult life, I’ve now been a part-time angel investor for 5 years and a full-time venture capitalist for the past 9 months. During that time,…

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Angels vs. Venture Capitalists

[This blog post was originally published at Marc's blog on March 1, 2010.] At our new venture fund, we’ve been spending time looking into new ways that will make the lives of entrepreneurs seeking funding easier. To that end, we’ve linked up with Ted Wang who has been working on an open source legal project…

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Does getting an MBA make someone a better entrepreneur?

I answered a provocative question on Quora earlier this year, and thought I’d repeat the answer here: I don’t have an MBA (I have an MS in Computer Science), so I can’t speak from direct experience. As CEO, I’ve managed dozens of MBAs in my career, so this answer is based on that experience. An…

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