Here's to a great 2008 !
Dan MacDonald
Sunday, December 30, 2007
Friday, December 28, 2007
Benazir Bhutto ~ Rest in Peace
With total disgust I have been watching the news out of Pakistan.
Benazir Bhutto was preparing to fight a democratic election and was assassinated seemingly because she was a treat to those in power.
The world has just gotten even more volatile than it already was only days ago.
We should count our blessings for while we do not live in a perfect part of the world, we clearly live in a place far better off than many.
Benazir Bhutto ~ Rest in Peace
Dan MacDonald
Benazir Bhutto was preparing to fight a democratic election and was assassinated seemingly because she was a treat to those in power.
The world has just gotten even more volatile than it already was only days ago.
We should count our blessings for while we do not live in a perfect part of the world, we clearly live in a place far better off than many.
Benazir Bhutto ~ Rest in Peace
Dan MacDonald
Saturday, December 22, 2007
Leadership
Leadership requires two key things; perspective & courage.
Perspective:
A leader knows that while it is very important to understand where they are trying to go and or what they are trying to achieve, it is NOT important for the leader to have to know how they are actually going to specifically achieve their objective. Leaders break new ground, so there is no defined path or process to follow. Yes, they of course have a view of generally how they will move forward and are confident they will achieve the objective, but at the same time they do not know exactly how they will reach the end point.
Courage:
A leader has the courage to move forward toward the end goal, with out knowing the exact path. Many around the leader raise issues, risks, what-abouts, showstoppers, warnings, biases, etc. The leader looks to understand and deal with them while she\he moves forward, rather than getting paralyzed by them.
- Leaders combine perspective and courage to confidently (not over confidently) move toward the objective.
-Leaders know full well they will rarely take a straight forward path, but instead make course corrections along the way.
- Leaders understand there will be challenges but keep focused on the end goal while navigating the issues that arise.
- Leaders are not always right, welcome constructive challenge and solutions oriented debates
- Leaders respect the team and are respected.
- Leaders are not afraid of failure.
- Leaders are ready to take the blame but not the credit.
- Some of the best leaders, lead from the back.
- Leaders achieve excellence while striving for perfection.
- Leaders step up.
Dan MacDonald
Perspective:
A leader knows that while it is very important to understand where they are trying to go and or what they are trying to achieve, it is NOT important for the leader to have to know how they are actually going to specifically achieve their objective. Leaders break new ground, so there is no defined path or process to follow. Yes, they of course have a view of generally how they will move forward and are confident they will achieve the objective, but at the same time they do not know exactly how they will reach the end point.
Courage:
A leader has the courage to move forward toward the end goal, with out knowing the exact path. Many around the leader raise issues, risks, what-abouts, showstoppers, warnings, biases, etc. The leader looks to understand and deal with them while she\he moves forward, rather than getting paralyzed by them.
- Leaders combine perspective and courage to confidently (not over confidently) move toward the objective.
-Leaders know full well they will rarely take a straight forward path, but instead make course corrections along the way.
- Leaders understand there will be challenges but keep focused on the end goal while navigating the issues that arise.
- Leaders are not always right, welcome constructive challenge and solutions oriented debates
- Leaders respect the team and are respected.
- Leaders are not afraid of failure.
- Leaders are ready to take the blame but not the credit.
- Some of the best leaders, lead from the back.
- Leaders achieve excellence while striving for perfection.
- Leaders step up.
Dan MacDonald
Friday, December 14, 2007
Roy
This week, my father-in-law, Roy McGonnell passed away at the young age of 69.
69 is way to young to die.
Roy was quite a guy.
He was a husband, a brother, father of three, proud grandfather of 6, a multi sport Canada games level athlete, policeman turned postman, umpire, story teller, litterally everyones friend, the caregiver of his disabled wife for over 12 years. As we say in in Atlantic Canada "Roy was a real character".
Roy was a person who constantly told stories. As I think back, these stories were Roy's way of sharing his views on everything from sports, to politics, to family matters. I never heard him say an unkind word about anyone.
Dying and suffering from cancer for over a year, I never heard him complain once. Except for the night before he died he was watching harness racing on TV and expected to see 5 races not 4. He was pissed ;)
I and my three children have had the pleasure to know such a man.
They don't make many like Roy anymore.
Rest in peace Roy.
Dan MacDonald
69 is way to young to die.
Roy was quite a guy.
He was a husband, a brother, father of three, proud grandfather of 6, a multi sport Canada games level athlete, policeman turned postman, umpire, story teller, litterally everyones friend, the caregiver of his disabled wife for over 12 years. As we say in in Atlantic Canada "Roy was a real character".
Roy was a person who constantly told stories. As I think back, these stories were Roy's way of sharing his views on everything from sports, to politics, to family matters. I never heard him say an unkind word about anyone.
Dying and suffering from cancer for over a year, I never heard him complain once. Except for the night before he died he was watching harness racing on TV and expected to see 5 races not 4. He was pissed ;)
I and my three children have had the pleasure to know such a man.
They don't make many like Roy anymore.
Rest in peace Roy.
Dan MacDonald
Sunday, December 9, 2007
Circular Debates
We live in a society where we are able to freely debate issues.
Debating issues is a good thing.
People get to share their views, and hear those of others.
Ideally at the end of the debate, everyone has learned something and a solution to the issue is closer than it would have been.
There are topics though, that we l o v e to discuss in circles.
These topics somehow bring out the worst in our debating style.
We focus much of our energy on "what is wrong" vs "what will it take".
As a result 97% of our energy get used on the negative/look in the mirror side of the debate, rather than on the positive/how can we move forward.
These circular debates end up exhausting our energy, they rarely ever allow the issue to be resolved, and people basically give up.
If you find yourself in a circular debate, pause and ask yourself if there is a better way to move forward.
Step up and constructively/yet aggressively suggest that "we should spend our energy on working a solution, rather than rehashing..." After an awkward 30 seconds of silence, people usually shift into a more action oriented dialog.
If this does not happen, maybe it is time to hook up with some people who want to move forward not stand still.
Give it a try.
Dan MacDonald
Debating issues is a good thing.
People get to share their views, and hear those of others.
Ideally at the end of the debate, everyone has learned something and a solution to the issue is closer than it would have been.
There are topics though, that we l o v e to discuss in circles.
These topics somehow bring out the worst in our debating style.
We focus much of our energy on "what is wrong" vs "what will it take".
As a result 97% of our energy get used on the negative/look in the mirror side of the debate, rather than on the positive/how can we move forward.
These circular debates end up exhausting our energy, they rarely ever allow the issue to be resolved, and people basically give up.
If you find yourself in a circular debate, pause and ask yourself if there is a better way to move forward.
Step up and constructively/yet aggressively suggest that "we should spend our energy on working a solution, rather than rehashing..." After an awkward 30 seconds of silence, people usually shift into a more action oriented dialog.
If this does not happen, maybe it is time to hook up with some people who want to move forward not stand still.
Give it a try.
Dan MacDonald
Saturday, December 8, 2007
Don't forget to celebrate
What a week.
Three steps forward, one step back.
That's the way progress goes sometimes.
Hmm... make that most times.
Interesting how the "one step back" always seems to negate the excitement of the "three steps forward". The team needs to celebrate the progress, while working toward the next challenges.
Not celebrating the progress, and instead dwelling on the one setback, can create a demotivating environment.
Don't forget to celebrate before\while you are getting after the next challenge.
Dan MacDonald
Three steps forward, one step back.
That's the way progress goes sometimes.
Hmm... make that most times.
Interesting how the "one step back" always seems to negate the excitement of the "three steps forward". The team needs to celebrate the progress, while working toward the next challenges.
Not celebrating the progress, and instead dwelling on the one setback, can create a demotivating environment.
Don't forget to celebrate before\while you are getting after the next challenge.
Dan MacDonald
Saturday, December 1, 2007
Cause Bandwidth
Halifax is truly a great city.
Something fascinating is happening in our city and it is being propelled further and faster by social networking. At least it seems so.
Case(s) in point;
Citizens For Halifax
East Coast Connected
Fusion Halifax
The above three groups are great examples of new (less than 6 months old) initiatives fueled by people who love Halifax and want to make it better. Virtually overnight, these groups have attracted 100's of members, in one case over 500, in another over 1500. The dialog on these sites is passionate, comes from a diverse group of people, and is overwhelmingly positive.
Social Networking has been a very effective medium to communicate and recruit members to join these initiatives. The challenge, similar to any initiative, is to continue to offer compelling messages and challenges to members and sustain momentum.
It is interesting to me, that these new initiatives inadvertently challenge existing initiatives in Halifax by draining some of the "cause bandwidth" the active members had if any for the existing causes. This is not a bad thing. Renewal is necessary, as is attracting new and often younger people to the various causes.
Some existing initiatives have jumped on the social networking bandwagon to attempt to tap into the medium. I suspect that take up will be modest. Why ? Their messages are somewhat dated, the language is somehow out of step with the language of the 20 and 30 somethings, the clock speed of the existing initiatives is s l o w e r that that of the new ones.
Are we observing the beginnings of a "turn over" or "take over" or "migration" of our great city's causes by a newer younger more passionate group of Haligonians ? A rapid migration I think.
It will be fascinating to track the momentum of the new and the old.
Dan MacDonald
Something fascinating is happening in our city and it is being propelled further and faster by social networking. At least it seems so.
Case(s) in point;
Citizens For Halifax
East Coast Connected
Fusion Halifax
The above three groups are great examples of new (less than 6 months old) initiatives fueled by people who love Halifax and want to make it better. Virtually overnight, these groups have attracted 100's of members, in one case over 500, in another over 1500. The dialog on these sites is passionate, comes from a diverse group of people, and is overwhelmingly positive.
Social Networking has been a very effective medium to communicate and recruit members to join these initiatives. The challenge, similar to any initiative, is to continue to offer compelling messages and challenges to members and sustain momentum.
It is interesting to me, that these new initiatives inadvertently challenge existing initiatives in Halifax by draining some of the "cause bandwidth" the active members had if any for the existing causes. This is not a bad thing. Renewal is necessary, as is attracting new and often younger people to the various causes.
Some existing initiatives have jumped on the social networking bandwagon to attempt to tap into the medium. I suspect that take up will be modest. Why ? Their messages are somewhat dated, the language is somehow out of step with the language of the 20 and 30 somethings, the clock speed of the existing initiatives is s l o w e r that that of the new ones.
Are we observing the beginnings of a "turn over" or "take over" or "migration" of our great city's causes by a newer younger more passionate group of Haligonians ? A rapid migration I think.
It will be fascinating to track the momentum of the new and the old.
Dan MacDonald
Wednesday, November 28, 2007
Skin getting thicker or thinner ?
I continually see an Entrepreneur's/CEO's skin get thicker as they navigate the trials and tribulations of a growth company. Determination, a sense of responsibility to shareholders and faith in themselves keeps them going strong.
Surprisingly, I also see the start-up company employee's skin get thinner as the company goes through the above process. Employees can fatigue, become disillusioned with the potential, and balance of risk and reward.
These realities are often a surprise, even hurtful to the CEO who thought he was on the same page as all of the troops.
Your troops need one on one reassurance and reinforcements. Their upside and downside is different than yours.
Check in often.
Dan MacDonald
Surprisingly, I also see the start-up company employee's skin get thinner as the company goes through the above process. Employees can fatigue, become disillusioned with the potential, and balance of risk and reward.
These realities are often a surprise, even hurtful to the CEO who thought he was on the same page as all of the troops.
Your troops need one on one reassurance and reinforcements. Their upside and downside is different than yours.
Check in often.
Dan MacDonald
Saturday, November 24, 2007
What are you waiting for ?
What are you waiting for ?
What is the worst that could happen ?
The only way to never to make mistakes, is to do nothing.
Go for it.
Dan MacDonald
What is the worst that could happen ?
The only way to never to make mistakes, is to do nothing.
Go for it.
Dan MacDonald
Wednesday, November 21, 2007
Relevancy
Know your customer.
Whether internal or external, accumulate and maintain a deep knowledge of your customers needs, desires, business problems and sensitivities.
Customers are only to happy to share, if you genuinely ask.
This knowledge will benefit you and your organization in numerous ways, the most important being “ensuring your relevancy”.
Dan MacDonald
Whether internal or external, accumulate and maintain a deep knowledge of your customers needs, desires, business problems and sensitivities.
Customers are only to happy to share, if you genuinely ask.
This knowledge will benefit you and your organization in numerous ways, the most important being “ensuring your relevancy”.
Dan MacDonald
Start-up Company - Board of Directors
Start-up Company - Board of Directors
Start-up organizations typically look to surround themselves with trusted advisors who can offer business wisdom, open doors, share industry knowledge, and or help raise funds. These advisors are a group of people who are tapped when required and have no real fiduciary responsibility to the company. An advisory board is an important element of successful companies.
As a start-up company evolves and attracts investment, it becomes very important for the organization to form a proper board of directors. It is the responsibility of this board to ensure the overall integrity of the company.
Boards of Directors and Advisory Boards are completely different in function, accountability, and decision making power.
The following excerpt from an article in Inc. magazine provides some tips well worth considering:
Choosing a Board Seek out people who have experience dealing with the growth transitions you anticipate for your company. If you look around the boardroom and none of your directors has ever managed a company bigger than yours, then you have a problem. You need only one person with specific experience in your industry.
After that, pick people who have managed businesses through various stages of development. Try to imagine how each candidate might handle a swing vote situation. Avoid choosing members who seem unwilling to bend every now and then.
Anticipate who might cause fights. Above all, steer clear of bullies and loudmouths. Make changes. As your company evolves, so should your board. From the outset, let members know that you intend, from time to time, to appoint new people with different connections, market knowledge, and strategic experience.
You have a board. Now manage it. Like any group of people within your company, your board members need direction and even encouragement. They also need to be kept informed.
The rest of the article provides additional practical advice on this important topic. http://www.inc.com/guides/growth/20672.html
As start-up companies seek more significant rounds of financing, attracting larger institutional investors, the terms of these investments often stipulate that the investor have a seat at the board.
It is important to strategically consider the current and most likely future state board of directors. Do you have a credible, seasoned, strong board chair ? If the current board chair is the CEO, this will need (in most instances) to change.
A start-up company in the need of investment, is rarely in a position to push back on such a condition and trusts that the designated board member will be generally good for the company. After all the new investor will want to protect their investment. While this is likely true, there are situations where the institutional investor designates a board member who is not an ideal board candidate.
In extreme cases, the designate is a person who is NOT constructive, balanced, experienced, or at all compatible with the rest of the board. Nothing wrong with a different point of view, but in these extreme cases the new board member(s) can have significant negative impact on the company.
Start-up companies who are negotiating investments and who will need to give a board seat to the investing organization should proactively discuss with the investing organization the type of board member who could add significant value to the company. This discussion will sensitize the organization to the fact that the start-up looks to ensure that the board member assigned adds value not the other way around. Ideally, in the right context, the investor will discuss the type of person they would like to see represent them. The two way dialog can be an opportunity for the start-up company CEO and or Chairman to influence the end result.
Not having this conversation sends an entirely different signal and creates unnecessary risk.
This simple but critically important approach, will be seen as strategic by the investor and help prevent some major headaches down the road.
Dan MacDonald
Start-up organizations typically look to surround themselves with trusted advisors who can offer business wisdom, open doors, share industry knowledge, and or help raise funds. These advisors are a group of people who are tapped when required and have no real fiduciary responsibility to the company. An advisory board is an important element of successful companies.
As a start-up company evolves and attracts investment, it becomes very important for the organization to form a proper board of directors. It is the responsibility of this board to ensure the overall integrity of the company.
Boards of Directors and Advisory Boards are completely different in function, accountability, and decision making power.
The following excerpt from an article in Inc. magazine provides some tips well worth considering:
Choosing a Board Seek out people who have experience dealing with the growth transitions you anticipate for your company. If you look around the boardroom and none of your directors has ever managed a company bigger than yours, then you have a problem. You need only one person with specific experience in your industry.
After that, pick people who have managed businesses through various stages of development. Try to imagine how each candidate might handle a swing vote situation. Avoid choosing members who seem unwilling to bend every now and then.
Anticipate who might cause fights. Above all, steer clear of bullies and loudmouths. Make changes. As your company evolves, so should your board. From the outset, let members know that you intend, from time to time, to appoint new people with different connections, market knowledge, and strategic experience.
You have a board. Now manage it. Like any group of people within your company, your board members need direction and even encouragement. They also need to be kept informed.
The rest of the article provides additional practical advice on this important topic. http://www.inc.com/guides/growth/20672.html
As start-up companies seek more significant rounds of financing, attracting larger institutional investors, the terms of these investments often stipulate that the investor have a seat at the board.
It is important to strategically consider the current and most likely future state board of directors. Do you have a credible, seasoned, strong board chair ? If the current board chair is the CEO, this will need (in most instances) to change.
A start-up company in the need of investment, is rarely in a position to push back on such a condition and trusts that the designated board member will be generally good for the company. After all the new investor will want to protect their investment. While this is likely true, there are situations where the institutional investor designates a board member who is not an ideal board candidate.
In extreme cases, the designate is a person who is NOT constructive, balanced, experienced, or at all compatible with the rest of the board. Nothing wrong with a different point of view, but in these extreme cases the new board member(s) can have significant negative impact on the company.
Start-up companies who are negotiating investments and who will need to give a board seat to the investing organization should proactively discuss with the investing organization the type of board member who could add significant value to the company. This discussion will sensitize the organization to the fact that the start-up looks to ensure that the board member assigned adds value not the other way around. Ideally, in the right context, the investor will discuss the type of person they would like to see represent them. The two way dialog can be an opportunity for the start-up company CEO and or Chairman to influence the end result.
Not having this conversation sends an entirely different signal and creates unnecessary risk.
This simple but critically important approach, will be seen as strategic by the investor and help prevent some major headaches down the road.
Dan MacDonald
Sunday, November 18, 2007
Seed and Early Stage Investing
At a recent Canadian Venture Capital Association (CVCA) conference, a panel I moderated debated "Seed and Early Stage Investing". The panel brought together perspectives from active and highly regarded US, Europe, and Canadian venture capital firms. While the panel did not agree on all topics, here are the common themes from debate.
When considering Seed and Early Stage Investing, institutional investors;
1. Target to acquire at least 20%-25% equity in the target company, so as to survive dilution of follow on rounds.
2. Immediately after the close of the seed/early stage investment round, begin to position the target company for a follow on round of investment with appropriate VC's. As they say "raise money long before you desperately need it".
3. The strength of the management team is as important as the strength of the IP. Prior to the seed/early stage round closure, an investor must ensure expectations and logic for future management team makeup change are clear. Changing the CEO for example is a 3 to 6 month journey from recruit to effective. A very tough thing to do while building value, positioning for follow on rounds, etc."
4. Strategically considering the most probable and profitable "exit" paths for a given target investment begins prior to the seed/early stage round and throughout the target companies life cycle. Management must be able to build real value in the company which enhances the likely hood of a profitable exit. Strategic decisions made throughout the companies life cycle must always consider which decision enhances the companies value to potential acquirers.
What do you think of these themes ?
Agree ?
Disagree?
Why ?
Dan MacDonald
When considering Seed and Early Stage Investing, institutional investors;
1. Target to acquire at least 20%-25% equity in the target company, so as to survive dilution of follow on rounds.
2. Immediately after the close of the seed/early stage investment round, begin to position the target company for a follow on round of investment with appropriate VC's. As they say "raise money long before you desperately need it".
3. The strength of the management team is as important as the strength of the IP. Prior to the seed/early stage round closure, an investor must ensure expectations and logic for future management team makeup change are clear. Changing the CEO for example is a 3 to 6 month journey from recruit to effective. A very tough thing to do while building value, positioning for follow on rounds, etc."
4. Strategically considering the most probable and profitable "exit" paths for a given target investment begins prior to the seed/early stage round and throughout the target companies life cycle. Management must be able to build real value in the company which enhances the likely hood of a profitable exit. Strategic decisions made throughout the companies life cycle must always consider which decision enhances the companies value to potential acquirers.
What do you think of these themes ?
Agree ?
Disagree?
Why ?
Dan MacDonald
Saturday, November 17, 2007
East Coast Connected
The East Coast Connected (ECC) initiative.
Having taken a closer look and meeting a couple of times with the founders of ECC, I have become a big fan.
Bottom line.
As you probably know first hand, when someone from the east coast (or from anywhere) has “moved away”, it is virtually impossible to have any meaningful connection with the business community back home.
One can read the local paper on line, visit various web sites which are typically static, chat with friends and family every week or so, but the result of this scenario is that expatriates lose and or are unable to develop business connections back home.
This lessens the likely hood of them reintegrating in the future, and doesn't it allow the local business community to tap the collective wisdom and connections of these folks.
East Coast Connected (ECC)
ECC, while not a silver bullet, sets out to provide connectivity between those here in the business community and those who are away. The connectivity can be as simple as providing a forum to keep up to date, but more importantly can enable business connections, mentoring opportunities, career opportunities, etc.
What I especially appreciate about ECC is the fact that the concept has grown on Facebook from 0 to 1500 + members in only a couple of months. The multi city launch on November 7th, brought together interested folks of all ages, but mostly the 20 and 30 somethings.
The business community can really benefit from associating themselves with ECC. Access to expatriate talent who, by the fact that they have joined ECC, are at least open to opportunities back in their home areas.
Check it out at:
http://www.eastcoastconnected.ca/
or
on Facebook Group: East Coast Connected
Dan MacDonald
Having taken a closer look and meeting a couple of times with the founders of ECC, I have become a big fan.
Bottom line.
As you probably know first hand, when someone from the east coast (or from anywhere) has “moved away”, it is virtually impossible to have any meaningful connection with the business community back home.
One can read the local paper on line, visit various web sites which are typically static, chat with friends and family every week or so, but the result of this scenario is that expatriates lose and or are unable to develop business connections back home.
This lessens the likely hood of them reintegrating in the future, and doesn't it allow the local business community to tap the collective wisdom and connections of these folks.
East Coast Connected (ECC)
ECC, while not a silver bullet, sets out to provide connectivity between those here in the business community and those who are away. The connectivity can be as simple as providing a forum to keep up to date, but more importantly can enable business connections, mentoring opportunities, career opportunities, etc.
What I especially appreciate about ECC is the fact that the concept has grown on Facebook from 0 to 1500 + members in only a couple of months. The multi city launch on November 7th, brought together interested folks of all ages, but mostly the 20 and 30 somethings.
The business community can really benefit from associating themselves with ECC. Access to expatriate talent who, by the fact that they have joined ECC, are at least open to opportunities back in their home areas.
Check it out at:
http://www.eastcoastconnected.ca/
or
on Facebook Group: East Coast Connected
Dan MacDonald
"Walk with a swagger"
Welcome to "Walk with a swagger".
Throughout my career I have worked with some fantastic people from around the world. The most all around successful people I have met are confident people. Not over confident, but confident.
A colleague of mine once said, “You have to understand the situation at hand, come to terms with it, and move confidently forward. You have to walk with a swagger.” While a little hokey at first glance, I believe there is an important piece of advice here for all of us.
Rather than getting bogged down or frozen because you are up against a complex situation, you must come to terms with it and move forward. I see people at all levels allowing them selves to get in a rut for far too long, creating lots of motion but little progress.
One has to use ones expertise, network, and courage to choose a path and move forward. If you find the path is wrong, then recalibrate and keep moving. Walk with a swagger, you’ll like how it feels.
Dan MacDonald
Throughout my career I have worked with some fantastic people from around the world. The most all around successful people I have met are confident people. Not over confident, but confident.
A colleague of mine once said, “You have to understand the situation at hand, come to terms with it, and move confidently forward. You have to walk with a swagger.” While a little hokey at first glance, I believe there is an important piece of advice here for all of us.
Rather than getting bogged down or frozen because you are up against a complex situation, you must come to terms with it and move forward. I see people at all levels allowing them selves to get in a rut for far too long, creating lots of motion but little progress.
One has to use ones expertise, network, and courage to choose a path and move forward. If you find the path is wrong, then recalibrate and keep moving. Walk with a swagger, you’ll like how it feels.
Dan MacDonald
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