Our Fathers, Our Companies : Thoughts on Father's Day and Entrepreneurship

On this father’s day, I have been thinking about my own dad and his influence on my life and career as an entrepreneur.   In fact, the dedication I put onto the new edition of Zen Entrepreneurship, launched just last week, was:  “For my Dad, who brought us from the East, into the West”

My father was an immigrant from Pakistan, who packed up the family and brought us, back in the 1970’s, to the auto capital of the world, Detroit, where he hoped to put his economics background to good use.  From that time, he subtly and not-so-subtly encouraged us to think big, be ambitious, and even steered us towards tech entrepreneurship.

One Saturday in the early 1980’s, in the cold landscape of North Dakota, where we’d moved to because he couldn't find a decent job in Detroit during the recession,  he brought both us into his office. They had just bought an Apple II computer, and he wanted to show us that this would be the “next big thing”.  I still remember the first BASIC program that he taught us to write:

10 Print “Hello”

20 Goto 10

Well, after that I was hooked.  My brother and I competed to see who could build the better Tic Tac Toe games on the Apple II at my Dad's office after school.  Eventually we got our own Commodore 64 to program in.  The graphics were terrible – blocky lines that we used to draw X’s and O’s, but I remember my excitement when I figured out that I could have the computer play against a person (It didn’t occur to me until I saw WarGames with Mathew Broderick that you could have the computer play itself!).

My dad also brought out a copy of Time magazine that had a very young Steve Jobs on the cover with an apple on his head and showed it to us.  This was the only cover of Time that I remember him ever showing us (I just looked up the date – it was February 15, 1982), and the only cover of any magazine other than Mad that I remember from when I was kid.

Though my father wasn’t an entrepreneur himself, he always had an entrepreneurial mindset, and I think this had a lot to do with both my brother and I becoming entrepreneurs.   There was another side to this encouragement, of course - like most Asian parents that immigrated back then --  there were only a few “acceptable” professions for their kids: an engineer, lawyer, doctor, or entrepreneur. 

When I proudly announced that I was thinking of becoming an actor in high school, I remember him reprimanding me with some practical advice - if you want to be an actor, that's fine, but get an engineering degree so you can have a "real job" and make a living.  I listened (it turns out I was much better at computer programming than I was at acting!).  The funny thing is that my tech entrepreneurship eventually led me to be an angel investor in startups, which eventually led me to becoming a producer of independent films,  so it's call come back full circle.  

On this father’s day, I wonder what role encouragement from one’s dad (or mom, but we’ll talk about that on mother’s day!) plays in the (unconscious) decision to become an entrepreneur?

My co-founder in my very first (and most recent) company, Mitch Liu, had grown up with his dad running a small business in Seattle.  I also recall in my book that Mitch’s father had given us the funding so that we could afford to go to our first trade show, which launched our first product.

Years later, when I was at Stanford Business School, Steve Ballmer came to speak to to us.  He told us that Bill Gates had wanted Steve to leave business school to join Microsoft full-time. Steve’s own father wasn’t so sure since the company was just a fledliging startup at the time.  When Steve hesitated, Bill brought out the big guns to convince him that Microsoft was an opportunity that Steve couldn't pass up: Bill’s father.  According to Steve, whenever there was a serious negotiation in those early days and someone needed convincing, Bill would make them have dinner with his father, which would usually do the trick!

One of Bill Gates' neighbors, Naveen Jain, whom I met recently, co founder of Intellius and Moon Express, wrote a nice piece about his children becoming entrepreneurs at a very young age on Forbes:   http://www.forbes.com/sites/naveenjain/2012/06/17/the-source-of-my-greatest-happiness-have-always-been-our-children/

If their father hadn’t been such a successful entrepreneur and such an influence on them, I wonder if would they have become so entrepreneurial at such an early age?

Scott Walker, himself founder of Walker Law Group, tells us a cautionary taleabout his own father, who had started and took a telecommunications company public, making milions, and then losing them in a great read on this father's day: “3 Lessons for entrepreneurs on Father’s day”: http://blog.asmartbear.com/three-entrepreneur-lessons.html

As I think about it today, while I don’t believe that genetics has anything to do with it, I can say that most of the people that I know who’ve become entrepreneurs had some serious influence come down from their fathers.  So, on this Father’s day, as we appreciate our Dad’s, let’s also think about the influence we are having on the next generation - it could be a key factor in what direction they end up going down in their own path in life.

Zen Entrepreneurship : Second Edition Now Available and a Bestseller!

“I started meditating, a path of personal growth, because I thought it could help accelerate my career. By the time I was done, I would begin to view my career as a way of accelerating my personal growth. I realized I had it backwards.”

                        -from Zen Entrepreneurship, Rizwan Virk

The second, expanded edition of my book, Zen Entrepreneurship: Walking the Path of the Career Warrior – was launched on Amazon recently and I'm happy to announce it's become an international bestseller in four countries!

Buy it on Amazon.com now:  http://www.amazon.com/dp/0983056919/

Special Promotion - Get hundreds of dollars in free gifts: http://www.zenentrepreneur.com/book

Follow the book on Facebook: http://www.facebook.com/zenentrepreneur

What is this book about?

Zen Entrepreneurship reads like 3 books rolled into one:  a business tale, a spiritual adventure, and a handbook.

On one level, it’s the story of my very first startup, which I founded with my  good friend from MIT, Mitch Liu.  We didn’t really know what we were doing, but were very ambitious and to our surprise, the startup took off, and for a while it was one of the hottest startups on the East coast.  We had numerous articles written about us and Information Week called us one of 8 startups that CIOs of major corporations should watch. One this level, the book can be read as an interesting “startup tale”.

On another level, it’s a book about a path of spiritual growth.  Around this same time, I started meditating and working with a set of spiritual teachers and learning about “the hidden worlds”.  Back in those days, I didn’t care much about spiritual growth – or topics like dreams, finding my calling in life, karma, energetic patterns, synchronicity – I just wanted something that would help me mentally focus and have the mental stamina that a startup requires.  What I found was that the two were interrelated - more than I realized.  At this level, you can read it as a "tale of power" of a student being mentored - like The Way of the Peaceful Warrior, or the Teachings of don Juan. 

The third level, which is the most important in my opinion, is that this book is a handbook for bringing spiritual development and your work into one.  The Buddha once said: “Your work in life is to find your work and give your heart to it!”.  Rather than having your personal growth “over here”, while your work and your career is “over there”, the book describes the “Path of the Career Warrior”, which is a way to integrate the two paths into one.  In fact, the issues you are struggling with in your personal life and/or your meditation, are the same issues you will likely be dealing with in your career. If you have a startup, it’s even worse!

What have people said about the book?

“Tales of Power meets the Peaceful Warrior... in Silicon Valley! It's entertaining, humble, insightful and valuable - not just to entrepreneurs, but to anyone looking to manifest their dreams and make a difference in the world.”


           —Foster Gamble, Creator and Host, Thrive: What on Earth Will It Take

“You will come away with insight about yourself, guidance … and knowledge that you may not be able to acquire anywhere else save the mountaintops of the Himalayas.”


—Bookreview.com

 “Riz Virk brings the wisdom of ancient Eastern traditions into a purely Western setting. The result is an often hilarious but always insightful book that will change how you view career success and help you discover and walk your own unique path.”


—Marc Allen, author of Visionary Business, CEO and co-founder of New World Library

“Zen Entrepreneurship changed my life, it confirmed for me that 'clues' exist in the world around us and are powerful. I shared this book with every one of my clients from that point forward. Powerful. A must read... it reinforces that there is a bigger guide within us if we choose to listen”


—Lorin Beller, author of From Entrepreneur to Big Fish: 7 Principles of Wild Succes

What’s new in the second edition?

There’s at least 50 pages of new content based on feedback from readers in the years since I wrote the first edition  The new content transforms the book from a “fun story tor read” to a handbook, with summaries, principles, and exercises at the end of each chapter.

Many readers have told me they go back to the book every year to “refresh” on some of the business and spiritual principles described in the  story.  The second edition is  definitely the one to do this with – this edition is both a story and a manual for living the 14 principles of the Career Warrior.

Where can I get it?  What’s special on June 4^th!

If you buy the book June 4^th, you will receive a set of bonus gifts, worth hundreds of dollars from myself and other bestselling authors, spiritual and business coaches/advisors.  This includes a preview of my next book about synchronicity, Treasure Hunt,  an ebook from Betsy Chaisse, co creator of the wildly popular film, What the Bleep do we know?, Magical mystical images from visionary artist Ellen Mcdonough, and many, many more!

Special Promotion is here:  http://www.zenentrepreneur.com/book

Buy it here:   http://www.amazon.com/dp/0983056919/

Follow me on Facebook: http://www.facebook.com/zenentrepreneur

Zen and the Entrepreneur: The Startup Files

I just celebrated my birthday last weekend and as always, I found it a good time to reflect on the past year and the upcoming year. (Perhaps this is a good idea for all of us, since December 17 was also the day the war in Iraq was finally, finally over, and also the same day that Kim Jong Il, the leader of North Korea, keeled over).

A birthday seems to me like a more natural time to make resolutions for the next year, so that's what I did. One of mine was to write more. Which brings me here.

When I started this blog years ago, my plan was to write mostly about startups, along with some occasional tidbits about zen, meditation, science fiction, or anything else which popped into my head since the last entry, as long as I could somehow relate it back to the experience of starting and growing a company.

Like most things in life, it’s pretty easy to get dragged off track!

Two obvious examples: when I spent at year at Stanford Business School, this blog became about what life was like at the GSB (which led my classmates to have a running joke - whenever anyone said anything really funny or controversial, they’d to turn to me and blurt out: “Don’t put that in the blog!!”).

And, just last week, when I’d restarted the blog after a 1.5 year hiatus, I felt compelled to write about the Daily Show’s (wildly inaccurate) portrayal of my interview with them (See The Top 10 Things that the Daily Show with John Stewart Got Wrong About Tap Fish).

Of course, I'm sure there will be plenty of controversial and off-topic posts in the year to come (I promise!), but for now I want to shift the blog back to where I started. In this spirit, I thought I’d re-link to some of my favorite posts about… you guessed it… entrepreneurship (this is, after all, called the Zen Entrepreneur blog).

I’d like to dedicate these posts to those fearless individuals who, in the past year or in the upcoming year, despite the terrible economy, are willing to leave their well paying jobs, work long hard hours for little (if any) immediate reward, to take a risk and start a new company. In the process you will literally be creating something out of nothing, hopefully creating lots of jobs in the process.

I won't deny it can be stressful (if you've never had employees depending on you for their paychecks, month after month, or a mortgage of your own to pay without any paycheck coming in, or had investors and/or customers literally yelling at you ... well, welcome to the everyday world of a startup founder). But it can also be very rewarding on the days when things go right. And there are definitely some of those days too!

Here's to you:

• The Curious Case of Steve Jobs: Intuition and the Entrepreneur

  one-liner: “Don't let the noise of others' opinions drown out your own inner voice. ”

• Social Entrepreneur: From a Wacky Idea to the Nobel Prize

  one-liner : “Even the wackiest idea can make a huge difference. This happened when most of us had no idea what micro-loans were.”

• The Bootstrapper’s Dilemma

  One-liner: “When you got no cash, the real question is: To Focus or Not To Focus??"

• Build it Fast, But Make it Last

  0ne-liner: “Is your Agile really better than his Waterfall for a new software product? Is there really any good methodology for building software in a startup?”

• Poetry for Entrepreneurs: Love My Startup More Than You.

  one-liner: "Silly poem I wrote to the tune of an old jimmy when I was kicking around unemployed in Silicon Valley."

Here's to an interesting year ahead for all of you who are already on, or about to jump onto, your own entrepreneurial journey!

The Curious Case of Steve Jobs: Intuition and the Entrepreneur

“Don't let the noise of others' opinions drown out your own inner voice. And most important, have the courage to follow your heart and intuition. They somehow already know what you truly want to become. Everything else is secondary.”

- Steve Jobs, Stanford Commencement, 2005

Wow it’s been a long time since I’ve written an entry (the last once was written just before I sold my iPhone gaming company, Gameview Studios, to DeNA) in 2010. I’d like to re-start my blog with two topics that are dear and near to my heart: following your intuition and the death of Steve jobs.

Steve’s death on October 5, 2011 caused a literal outflowing of emotion, analysis and opining: hundreds, perhaps thousands of pages have been written in the last month alone since his death. And that’s not counting Walter Isaacson’s 600 plus page biography.

Some of these focused on his achievements at Apple and Pixar, some on his tumultuous personality, some on his “insanely great” products like the Mac and the iPhone, some on how he ran Apple after his comeback, some on the impact he’s had on (count them) at least five different industries, some comparing him to Walt Disney and Henry Ford combined.

So...what’s left to say?

For me one of the most inspiring (and overlooked) aspects of Jobs’ career and philosophy was his reliance on his own intuition even in the face of the “noise of others’ opinions”. I haven’t seen much written on it, so using his own words as much as possible, here goes:

Most writers about successful business persons like to try to reduce what they did to a set of pithy “principles” you can follow to be just “like Mike”. With Jobs, I think that’s pretty much impossible. It’s like asking for the “step-by-step formula” for how to “think different”! If it could be reduced to a formula…well you get the point.

Intuition vs. Analysis

Jobs attributed much of his success to his ability to follow his own “inner knowing”, even when analysts and the “experts” disagreed. He was quoted as saying he hated focus groups because consumers “don’t know what they want until we show it to them”. Instead, he insisted on having an “intuitive” feel for when a product was “just right” and when it felt “wrong”.

This is pretty much the opposite of what you will learn from business schools (even more progressive west coast ones like Stanford) about building products and companies. It’s even different from what most venture capitalists and startup gurus here in the valley will tell you - which is to analyze a market, make sure the analysis confirms that the market is “big enough”, then interview the people in that market to find out their needs. It’s kind of ironic that one of the biggest icons of Silicon Valley would disagree with the way business is being done here.

Tim Cook, who replaced Jobs as the CEO at Apple, talks about following his own intuition when he decided to join Apple after meeting with Jobs. “Engineers are taught to make a decision analytically but there are times when relying on gut or intuition are indispensable.”

Where did Jobs get this mindset from? A big part of his reliance on intuition vs. analysis came as a result of his own search for truth. When he was young, he dropped out of Reed College (again the opposite of what logic would tell you to do if you want to be a successful entrepreneur) and followed his own intuition down several notable paths.

The first path, his quest for enlightenment, led him first on a trip to India chasing some guru, and later transformed into his study of Zen meditation here in the Bay area. “The people in the Indian countryside don’t use their intellect like we do, “ said Jobs. “They use their intuition instead, and their intuition is far more developed than in the rest of the world.”

He concluded with: “Intuition is a very powerful thing.” (src: Isaacson's biography).

Continuing his search for enlightenment when he came back to the US in the 1970’s he experimented with Zen meditation (an interest he kept up for the rest of his life) and mind-altering drugs (which as far as I know, he did not keep up for the rest of his life). Now I can’t speak for LSD (since I’ve never taken it), but I can vouch that meditation can be indispensible for learning about different states of mind and teaching you how to follow your own intuition.

Steve Jobs said: “If you just sit and observe, you will see how restless your mind is. If you try to calm it, it only makes it worse, but over time, it does calm, and when it does, there’s room to hear more subtle things- that’s when your intuition starts to blossom and you start to see things more clearly and be in the present more. Your mind just slows down, and you see a tremendous expanse in the moment.”

According to his longtime friend, Daniel Kottke, who’d known him since his college days: “Steve is very much Zen. It was a deep influence. You see it in his whole approach of stark, minimalist aesthetics, intense focus.”

Zen influenced Steve Jobs in other ways too – including his appreciation of a minimalist ethic that rubbed off on his insistence that user interfaces and products be as simple as possible. When creating great products like the Macintosh and the original iPod, Jobs talked about having this intuitive knowing when something had met this ethic of simplicity and when it could be improved. Although he wasn't always right, he was right way more often than he was wrong.

Connecting the Dots: One thing leads to another

Of course, it’s not always easy to follow your intuition when it’s telling you something that’s different from what others tell you should “logically” be done. Jobs own life is a good example – ranging from his decision to drop out of Reed to what looked like a very poor investment decision to fund Pixar, a money-losing operation that he bought from George Lucas for $10 million in the eighties, and then continued to fund for years (to the tune of $50 million of his own personal money), until they came out with Toy Story in the nineties and became the landmark success story we know about today.

I think it only happens if you can have confidence in yourself and your own ability to find what’s right for you. Following your intuition often means follow your own path, even if you can’t see exactly where it’s taking you.

Jobs often gave an example from the time when he dropped out of college. He said that once he’d officially dropped out, he could take the classes that he “wanted to take” rather than the ones that “they were requiring him to take”, showing a streak of his habitual disrespect for authority.

He saw a flyers on campus for a calligraphy class, and decided to follow his intuition and take this class, where he learned about proportional fonts, serif vs. non-serif fonts. Jobs would say about this time: “It was beautiful, historical, artistically subtle in a way that science can't capture, and I found it fascinating. None of this had even a hope of any practical application in my life.”

Later, when it came time to design the Mac, he insisted that there be “fonts” of different types, rather than the usual stale green fonts that were popular at the time. Again in his own words:

“And we designed it all into the Mac. It was the first computer with beautiful typography. If I had never dropped in on that single course in college, the Mac would have never had multiple typefaces or proportionally spaced fonts. And since Windows just copied the Mac, it's likely that no personal computer would have them. If I had never dropped out, I would have never dropped in on this calligraphy class, and personal computers might not have the wonderful typography that they do.”

This was perhaps the most important example of what Jobs referred to as “connecting the dots” – when something in your life unexpectedly connects to something at a far later date, but you are completely unaware of the influence it’ll have at the time.

I think that most successful entrepreneurs benefit from “connecting the dots” – bringing together seemingly unconnected experiences into a single whole that somehow is more than the sum of the parts. How do you know? You don’t – you have to have the courage though to follow your intuition.

I’ll end, as I began, with Steve Jobs in his own words from the now famous Stanford speech:

“Again, you can't connect the dots looking forward; you can only connect them looking backwards. So you have to trust that the dots will somehow connect in your future. You have to trust in something — your gut, destiny, life, karma, whatever. This approach has never let me down, and it has made all the difference in my life.”

Sloan at Stanford, Entry 2: Models and Modeling

I’m going to have two types of blog entries during my year at Stanford’s GSB – the first type will tell you what it’s like to attend this top-ranked business school. Those posts will go over what happened during a given day, week, or month (like the first post). We’ve now had our first official day of classes – and I'll soon be writing that kind of post if you're curious to know what classes are like.

Other posts, like this one, are reflections on something that occurred during the program which gave me pause and made me think about larger issues relating to the business school, the business world, and life in general.

Two things happened during our first week here that took me down some unexpected philosophical train tracks: Interestingly, they both involved modeling, though of completely different sorts – one was about the limits of financial modeling, while the other was about modeling for photographs.

Food For Thought: Are we all Models?

During orientation, a photographer came in and took individual pictures of all the Sloan Fellows. Nothing special, just a routine thing, but it was funny in its own way. The cameraman positioned us just so, telling us to turn diagonally away from the camera, facing sort-of forward. “Now, Smile.” “Now turn to the left.” “Now give us a more natural smile.” “Now turn away from the camera.” For a (very) brief instant, before they said “next”, I felt kind of like a fashion model and expected him to say "work it!".

These pictures, referred to as “face photos”, will end up hanging on the wall near Sally Pierce’s office on the fourth floor of the Stanford GSB building, forever capturing the Class of 2009 as we were (are). If you look at the Sloan wall today, there are pictures from classes starting in 1958, coming up to the present day class of 2008 which just graduated (Yes, the Stanford Sloan program just celebrated it’s 50th year).

What jolted me a bit more than it should have, perhaps, was that the men in the class were required to wear a suit jacket and tie for these pictures. I guess I shouldn't have been surprised: After all, the previous students on the Sloan wall all seemed to be wearing a suite and tie. For another, I am attending business school, and that is the formal dress of business for men, so what’s the big deal?

For one thing, the last time I remember wearing a suit and tie was in 2005 at my brother’s wedding. For another thing, I almost didn't bring any suits or ties with me to school. As I left Boston, something told me to dig out an old suit (it still fit, thank god!), just in case. Now I’m glad I did.

One of my classmates found this surprising since I’m a high tech entrepreneur and have run several companies. “Haven’t you had to raise venture capital or other investment for your companies or visit clients? Don’t you have to wear suits when you do that?”

Yes, but the dress in Silicon Valley is pretty much sports-jacket, khakis, and dress shirt for men. If you’re a technical guy, you can even get away with wearing sneakers and jeans (Yes, believe it or not I wore black Nike sneakers to my most recent VC meetings). That’s it – no ties, no suits, no cufflinks, even the sportsjacket is optional on a hot day.

This got me wondering – have I really been in the “real” business world all these years? Or have I been isolated from the reality of business, hiding in a virtual bubble all these years? A bubble called Silicon Valley (in the broadest sense of this term since I haven’t physically been in California but rather in Boston for most of my career).

Maybe, but hasn’t the business world changed in a lot of ways where cosmetics aren’t as important today as they once were?

Recently, I spoke with a fellow entrepreneur from New York City who was raising money for his company, which makes software that will be sold to lawyers. He’s a former lawyer himself.

“Do they still wear suits in New York?” I asked, honestly surprised to see him in a suit.

“Oh yeah, all the time.” He answered, looking at me as if I was from another planet. Maybe I was – I had just flown out from California.

“Didn’t they stop doing that in, like, 1998?” I asked. “I remember reading that even conservative bankers like JP Morgan stopped wearing business suits and went to business casual dress.”

“Nope,” He continued, “After the dot com crash of 2000 and 2001, suits were back with a vengeance. They still are.”

This might sound like an obvious thing to some of my classmates and some readers of this blog, but I was genuinely shocked by his answer.

It’s kind of like when you’re in 70 or 80 degree weather on the west coast, and you go back to visit New York or Boston or Chicago in the winter to find the city in the middle of a snowstorm.

Sitting here in the blazing warm sunshine of Palo Alto, California, I honestly cannot remember what it felt like to be in a snowstorm. I remember it intellectually, I can look at pictures, but I just can’t seem to recall the exact feeling. Similarly, I honestly cannot remember what it was like when I had to wear a suit to work everyday – I know I did it, I can see pictures, but I had assumed we’d put that era of business behind us.

I began to wonder if some of my other assumptions about the business world were wrong too. Maybe I should’ve gone “Across the Street” (which is the Stanford GSB’s terminology for other parts of Stanford, such as the main campus, engineering school, med school, etc.), to be with my “own” kind – engineers and software guys?

But appearances can be deceiving. If you do wander by the Sloan wall in the GSB fourth floor, and see our pictures staring at you in some future year, what you will not know is that it was a very hot day, and most of us were wearing jeans, some of us shorts and some even wearing flip-flops on our feet. They are after all just head shots.

At least the men were. What about the female Sloan fellows?

There was no formal dress code specified for the women. I was surprised to hear this. When I asked Nikki, a classmate from Scotland, about this, she answered pithily, with a smile: “the only requirement is that we wear clothes”.

Is this simply a legacy that most Sloan fellows have been men until a few years ago? Could it be that today, when women are running for President and running large Fortune 500 companies that there are no formal guidelines for what is considered business-like for women?

By my count, there are only 11 women in our class of 57 future "business leaders". I guess that’s surprising too – I thought we’d left the era when there were only men in suits in the boardroom behind us as well. We had a higher percentage than this in engineering school. I wonder if the demographics in the two year MBA program are different?

But it’s not just a matter of gender – this whole suit thing got me thinking about “maintaining appearances in the business world” and what we do to "fit in"

One of my classmates told me that she naturally has a bubbly, enthusiastic personality. She was told by people in her company (a very large, well known corporation, I won’t say which one) that being this way wouldn’t help her move up into management. She should come across as a bit less bubbly a bit less enthusiastic, and much more serious, and this would help her case. In other words, don't be yourself. So, she played the part, suppressing some of her natural personality, in order to advance and was promoted in due time.

The bigger question is: How much of business in the “real world” is “putting on an appearance”?

In other words, how much of being in the business world is about acting like a fashion model that puts on the designer outfit, and struts her stuff on the catwalk, with just the right amount of swagger and hip movement. Why? Because she knows that’s what the audience wants to see. That's why we go to fashion shows. But is the business world one big fashion show?

I think we’re all guilty of this to some extent. Certainly I play up the “founder of an internet company” role when I go on the road, sometimes intentionally wearing sneakers and jeans to emphasize the role I’m playing.

The other day, I took a quick look at our class to see if I was the only one with a beard. At the time I counted only one other guy in our class with facial hair, Aaron, and it turns out he was a software guy, just like me (I’ve since counted at least one more, so we're up to three). I remember reading that Ross Perot at EDS would fire you back in the eighties if you had facial hair, or long hair for that matter... but that changed a long time ago, didn't it?

Another of my classmates who works at the financial industry showed me that she had a little tattoo on her wrist. It was a rather unobtrusive little tattoo. “Oh of course I cover it up with a watch when I’m at work,” she said. “Tattoos don’t work so well in the boardroom, you know.”

My question is, why don’t they? Is it OK to show our individuality in business school and then cover it back up when we get back into the business world? The bigger question is: Do we have to become someone else to be successful in corporate America, hiding our normal personality, creativity and individual need for self expression?

I guess a lot of my assumptions about how “business” has changed over the years may not be so true after all.

Food for Thought #2: What Can Modeling Really Do For You and Me

The other thing that really made an impression on me during the first week was a completely different kind of modeling, using Excel to model a business scenario. The model would then be used to come up with some quantitative predictions to help a business manager make decision, ranging from how many units to produce of a product, to how often to run recycling plants, to how many employees to hire or fire.

Professor Moore, who taught the class, explained during the Excel workshop (we’ll have a whole class dedicated to this in the fall term, so I’ll be writing a lot more about models I think) that models were only as good as the constraints we imposed on them.

In other words, if we ask a financial model to tell us, as one of our cases did (“Peninsula Recycling Services”) how many days we should run a set of recycling plants (one was located San Jose and one in Redwood City) to keep the costs at a minimum, what will it tell us?

The model, without being fully formed, will return an answer of zero days. In other words, to keep costs low, Peninsula Recycling Services should simply shut down all of its recycling plants. This obviously isn’t an acceptable solution to the case, since we were expected to produce a certain amount of recycling output. Without the proper constraints in place, our financial models aren’t very good models of reality. If the citizens of Redwood City suddenly find their recycling shut down, maybe you can blame it on a financial model!

But this raises an even larger question – since much of business world, and much of business school, rests on developing models and frameworks, how effective can these models really be in helping us to make decisions in the “real” world? There is, after all, no way to put all of the constraints of the real world into a financial model.

Even Professor Moore, who is a co-author of our textbook, “Decision Modeling with Microsoft Excel”, showed us a diagram where financial models are only part of the process – the other half consists of the manager using his/her intuition after seeing the results of the model to make a final decision.

But this raises the question, how much emphasis should managers put onto their own intuition (based on their experience) and how much should they put on their spreadsheet models? 30%? 50%? 75%? 25%?

One of our classmates in this workshop asked, during one of our cases, “So, what is the conclusion? What should this company do?"

Professor Moore, who has obviously dealt with this issue before, answered something to the effect of: “I don’t know what the company should do. I don’t even know what the right answer is for this particular business. I can only tell you what the financial model says. If the models always gave the right answer – then we could remove human decision-makers from the process. But you can’t. You, the manager, have to see if the answer makes common sense. You have to use your intuition – that’s why they pay you the big bucks, after all.”

Amen. I think too often companies rely too much on one side of this equation – either the analytical models (for larger organizations), or intuition (for smaller startups like the ones I’ve been a part of), and rarely are organizations able to include a “proper” mix of both. Nor is there even a definition of what is the “proper mix”.

So, if you’re thinking of shelling out the big bucks to go to business school, remember this. B-school is not going to give you some formula or algorithm for decision making that you can blindly follow in management scenarios to come up with the “right answer” – in fact there often is no single right answer.

I’ll be writing a lot more about modeling as we get into the school year. In the past, I’ve written a lot about intuition, but finding the balance between intuition and rational thinking is I think a much more philosophical question - one that 10 months in business school may not be able to answer. But I’ll let you know if I get any closer during the year!

SPECIAL DISCLAIMER: the opinions and experiences recounted in these blog entries about my year at Stanford for the Sloan Program are my own personal observations and ranting. This blog is not endorsed by either the Stanford GSB or by any of my fellow Fellows.

Sloan Program: Entry 1: Arriving at Stanford for Orientation

This week I started as a Sloan fellow at the Stanford Business School – which isn’t called the Stanford Business School at all – it’s almost always called the GSB by people in the know (short for the Graduate School of Business) -- so if you run into a Stanford Business School alum, say "GSB" to them and they'll be impressed. So I’m going to augment my usual “entrepreneurship entries” in the Zen entrepreneur blog with updates on what it’s like to attend this program at Stanford, for those of you who might find this fun or interesting, or perhaps both.

For those who have never heard of the Sloan Program, it’s a program that exists in three business schools in the world – starting with my undergraduate alma matter, MIT (which has, confusingly, both the Sloan School of Management and the Sloan Fellows Program). Here’s what I know about the history of the program:

The program was started by the old grandfather of modern American business, Alfred P. Sloan, the first CEO of General Motors. He was also an honorary member of the Dead Entrepreneur’s Society (ask me about that one privately if you’re interested since it was a group that existed briefly at MIT back in the early 1990’s). Mr. Sloan believed that mid-career executives who had been identified as “future business leaders” in America needed a special program that was set away from the business world to study management. Thus they (we) could return to the world of business with a fresh perspective, as well as practical leadership and business training that would be very difficult to get "on the job". Later, Sloan decided (through some wrangling by the schools themselves since he supposedly rarely gave money to any institution other than MIT, or so I’ve heard) to give some money to Stanford and the London Business School for similar programs. Each of the three Sloan programs is different – for one thing, they all have different lengths. For another, they have different curriculum (curriculi?).

Of course in Sloan’s day, being a “future leader” meant being an executive at one of America's largest companies. In fact, in the beginning all Sloan Fellows (as we’re called – don’t ask me why we’re Fellows and not students – I haven’t the slightest idea but it sounds very cool), were sponsored by their corporations. Today, many of us are either entrepreneurs or in-between jobs, who either have enough money to burn (er, I mean to say invest) for the program ourselves, or are wiling to do the American thing and borrow money from the federal government or private banks to attend. We’re called “self-funded” fellows (as opposed to “company-sponsored” fellows).

The only differences between self-funded and company-sponsored Fellows, as far as I can tell thus far are: 1) company-sponsored fellows have to go back to the company that paid for their tuition (rumor is that some companies will make you pay back the tuition if you don’t return), and 2) company-sponsored fellows have to get special permission to attend workshops like “entrepreneurship”, nor are they allowed to to use the career services at Stanford to look for jobs (for obvious reasons!). Otherwise the classes and experience are pretty much the same.

I heard about this program, surprisingly, not at Stanford or MIT, but at the London Business School, at my younger sister’s graduation from her MBA class last year. I saw a bunch of guys at the graduation who were my age (late 30’s) rather than her age, and I started to wonder what these old guys called “Sloans” were doing at Business School.

I chose to apply to the Stanford program because 1) I’ve always wanted to go to Stanford, which has a great reputation, 2) It’s at the heart of Silicon Valley and I’m a software entrepreneur, which makes for a good fit, 3) It’s in sunny California and not cold Boston or foggy London, and last but not least, 4) it was the shortest of the three Sloan programs (10 months, starting in September and ending in July).

I figured it would be OK to take a break from my business for this many months if I kept my cell phone with me at all times, still participated in board meetings and late night calls from time to time. We’ll see how well that works.

So with that out of the way, this week the US Fellows arrived on campus (many of the international Fellows arrived early), and we finished our orientation for the Sloan program. Classes start formally next week after the Labor Day weekend. Here are some quick observations about the first week:

1) Our class is very international. Given the global nature of business today, that’s probably a good thing. I think we have 18 different passports represented in our class of 57 people – other Fellows have come all the way from India, Japan, Singapore, China, Korea, Argentina, Brazil, and Europe to attend this program. I for one am looking forward to seeing how business is done in these other parts of the world and seeing how the dynamics of the class evolve with so many cultures represented.

2) As part of the curriculum, we get to go on "field trips" to some interesting companies in the US. I guess it wouldn’t really do for Business School students to just study at a University without going to see some real life businesses. For those of you who’ve never been in business school, these kinds of trips are not labeled "fun" but are actually part of the academic curriculum. This year we get to visit Google (if you don’t know who they are you probably wouldn’t be reading this blog online), LinkedIn (one of the more successful social networking sites of the past decade), Boeing (yes, we get to see the biggest building in the world, which is the size of 74 football fields), Nike (way cool, but we were warned not to wear Reebok or other competitive sneakers when we visit them -that would be considered a sneaker faux pas), as well as some institutions in DC and New York in the spring. Last year, the DC trip included a meeting with Bernanke (the Fed Chairman who replaced Greenspan), but not sure if we’ll be able to get him this year.

3) We are going to South America for an international trip at the end of the year. It seems that most people I know in business school end up travelling to Asia for an international study trip– either China or India or both -- since that’s where the “action” is today. In fact, last year’s Sloan class at Stanford just went to Asia at the end of their program. So, I gotta say at first I was a bit puzzled by our decision to go to Latin/South America instead. But I am looking forward to the novelty of it - Brazil has a very interesting economy these days, I’ve never been anywhere in South America, and I hope to see both Machu Picchu and the Nazca lines after the end of the trip. I’ll get to go to Asia on my own anyways (after all, I do own part of an outsourcing business in Pakistan, and India and China are not too far from there, political considerations aside). However, at least one of our South American friends didn’t seem too excited by going back there for the international study trip – he’s planning a separate vacation after our trip, going to, you guessed it, Asia.

4) Bill Gates is your friend. We had a Microsoft Excel workshop that was meant to “refresh” our understanding of Excel, with Professor Moore, who did in fact write the book on modeling with Excel. I’ve never met anyone who seemed to be so taken with Microsoft Excel – despite the many bugs that he warned us about. I thought I knew Excel pretty well already – having put together budgets, income statements, proposals, and balance sheets for my many companies. Turns out I didn’t know much about Excel at all – never heard of Goal Seek or Data Table, not to mention add-ins like Solver, Crystal Ball and Extend. Wish I had known about these sooner – they might’ve come in useful! I guess i'm going to be spending alot of time with my new friend over the school year.

5) Study Groups are the Key to Our Salvation. We were assigned to our first Study Group during our Orientation and we had a meeting with our group where we were supposed to discuss our strategy for running the group and how best to make it effective. I guess this was in good corporate style since I really had no idea what a Study Group was, or what it was supposed to do, and I suddenly found myself in a meeting about how best to run one. During my undergraduate days all we had were informal study groups – nobody was assigned to them, we were just a few friends who studied together and might, on occassion, copy each other’s problem sets if we didn’t have time to get them done by the due date (actually did I just say copy? No, that was a JOKE – at MIT we would NEVER copy one another’s problem sets, it is after all against the rules you know). In some classes during my undergrad days, we had group projects where one grade was assigned to the whole group for the project - maybe that's what a Study Group is. In Business School, it seems like everything hinges on Study Groups. Once I figure out exactly what one is supposed to be, I’ll let you know how best to run one!

6) Sloan Fellows have it easy compared to regular MBA’s. Since we’re older, with more management experience than your typical MBA student, most of us haven’t been to school in a while (the average work experience in our class is 12 years). That means that we get a bit of “special treatment” – though it does mean we have to come to school early. We have what’s called a “pre-term” – we take 3 classes for 3 weeks (Strategy, Managerial Accounting, and Microeconomics) without grades – it’s to get us used to the idea of “sitting in a classroom”, “arguing our points”, doing “assignments”, and doing all the things that students do again. Since I graduated 16 years ago, I think this is a very good idea!

In fact, this sounded pretty easy to me – we had a similar thing at MIT during my undergraduate days: our whole freshman year was pass/fail which took away a lot of the stress of competing against so many smart kids when you first arrived on campus. Many of the Sloan Fellows are married with kids, and some are business owners like me, so we have a lot of other things to be stressed out about. Like I said, this pre-term seemed like it was going to be pretty easy; but it turns out we have to read our first case and several chapters of our textbooks over the labor day holiday before our first class on Tuesday. Oh well, I better stop writing and start reading. Half the weekend is over and all I’ve done so far this weekend is go to a barbecue with other Sloan Fellows, and visit the world-famous Sausalito Art Festival.

SPECIAL DISCLAIMER: the opinions and experiences recounted in these blog entries about my year at Stanford for the Sloan Program are my own personal observations and ranting. This blog is not endorsed by either the Stanford GSB or by any of my fellow Fellows.