How to Find the Perfect Co-founder

To head off problems down the road, any prospective partner must bring a lot more than talent to the table. Here's what else to look for.

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With artists for parents, Maida Fortune is intimately aware of the trials and tribulations creative types go through to sell their work. So her idea, Cureeo--an online marketplace for original art--made a lot of sense to her.

The University of Chicago Booth School of Business MBA candidate is smart, though, and knew better than to set off on her own. For one thing, while dreaming up Cureeo Fortune worked as a venture capital associate for Hyde Park Angels and OCA Ventures and saw firsthand that investors are skeptical of solo acts.

"You have to have serious traction or present a very, very good case for yourself and even then the next question they ask is 'Who are you adding to your team and when?'" she says.

So she started looking for a partner. She considered peers from her MBA program, but they were too much like her. She interviewed people she found at tech meet-ups, but with no luck. Finally, she tried Founder2be, an online service that helps entrepreneurs find co-founders. There, she met Abid Ali, who now shares the Cureeo helm and is the company's CTO.

The partnership is going swimmingly, Fortune says, although if you want to emulate her successful matchmaking, there are several things you should consider.

Don't waste your time interviewing people until you vet their proven track records.

Fortune says she interviewed all too many programmers who claimed to be able to build a platform, but when it really came down to it, many of them hadn't coded in years. Before even talking to Ali, she scoped out his recent work and found it to be rock solid.

Be brutally honest with yourself.

When Fortune worked in venture capital she saw it all the time--arrogant entrepreneurs who think they have all the skills they need to hit a home run, yet nothing could be further from the truth. "Successful business owners are really good at recognizing what their own weaknesses are and building up a team around those weaknesses. And they're also humble enough to bring on people that are better than they are," she says.

Put expectations down on paper in the beginning.

How long are team members going to work on a start-up before giving up? What kinds of things might pull people away from focusing on the business? At what point will people quit their full-time jobs? These kinds of questions need to be asked right away, and their answers put to paper. While nothing is set in stone, and it's not a legally binding document, Fortune says it's helpful to know a year into it if everybody is doing what they said they would. (On her bookshelf: The Partnership Charter, by David Gage.)

Understand one another's risk profiles.

Everyone has a different sense of risk that they're willing to absorb, she says. For example, if one person can go without a salary for six months and the other person can go a year without pay, the first person might get distracted about four months in, thinking about how he or she is going to pay the bills.

"Or, say there is one path for the business with a higher probability for making money in the short run, but less payout overall," Fortune says. "Say the other path is less certain, but the potential payout in the end is higher. The company can't execute both strategies. The person with the higher tolerance for risk may be more inclined to try for the second option, while the person with lower tolerance would prefer the first option. This can ultimately lead to conflict.

Understand personality types.

Through their Chicago incubator Fortune and Ali took a personality test thanks to research the Kauffman Foundation was funding. While the duo knew they were polar opposites, the formal assessment gave them a starting point for discussing their differences. "You don't want a team of people who are all similar to one another because then you have groupthink problems and affirmation bias and all that junk," she says. "You want people who are different. You've got to learn how to work together and you can't work together unless A) you respect one another and B) you have to have a vernacular to talk about things."

Christina DesMarais is an Inc.com contributor who writes about the tech start-up community, covering innovative ideas, news, and trends. Have a tip? Email her at christinadesmarais (at) live (dot) com. @salubriousdish

How Competition Makes You Better

A famous rivalry shows us how competition can be both inspiring and productive.

Henri Matisse (left) and Pablo Picasso

Pablo Picasso couldn't have created his masterpiece Les Demoiselles d'Avignon in 1907 if it weren't for the looming presence of Henri Matisse.

Picasso was angered, frustrated and inspired by the French artist's revolutionary style and the way he deserted classical artistic norms. He was angered because he wanted to be the one to break the mold Matisse was hammering away at, frustrated because he struggled to find his own, unique voice in what was to become modern art, and inspired by Matisse's monumental courage. It was Matisse, after all, who was one of the first modern artists to put his chin out and produce 'ugly' art, to the chagrin and bemusement of critics and audiences.

Matisse pushed Picasso to break completely from an earlier artistic legacy to create new, exciting, challenging, and maddening works of art.

It cut both ways. Picasso commented, 'No one has ever looked at Matisse's painting more carefully than I; and no one has looked at mine more carefully than he.' Matisse acknowledged Picasso as a partner on his march toward modernity, and borrowed from Picasso's style. He even went so far as to incorporate Picasso's use of tribal African masks into a painting of his wife, Madame Amélie Matisse.

There are a number of ways leaders can learn from Picasso and Matisse's complicated, tumultuous, and inspiring rivalry.

1. Competition mutes critics and builds courage

Talking to Gertrude Stein, Matisse said that he and Picasso were 'as different as the North Pole is from the South Pole.'

Though different, they were both plagued by critics from the beginning.

One critic wrote of Matisse's artistic group, 'the wild beasts' that, 'All they give us in the way of sunlight is trouble with the retina.' Another critic went on to say the Matisse's figures were 'reptilian.'

Picasso wasn't spared either. After he finished Les Demoiselles d'Avignon, his closest friends were shocked and even laughed. Horrified, Picasso put the painting aside without exhibiting the work. Little did he know that the painting would come to define modern art.

Picasso and Matisse had to shoulder criticisms from colleagues, critics, and the larger public, yet they persisted and kept trying to best to exemplify an art free from the chains of tradition.

Picasso and Matisse looked to each other's works for inspiration and courage. They didn't let the chorus of critics alter their direction.

Lesson for leaders: Rivalries need not be petty and wear on one's energy and creativity. They can be instruments of focus and daring.  Matisse said, 'Another word for creative is courage.' Rivalries supply people with focus and the audacity to try new daring things.

2. Competition helps us find faults

Picasso said, 'It is a well-known fact that we see the faults in other's works more readily than we do in our own.'

Both Matisse and Picasso studied each other's work carefully. While they admired each other's departure from artistic norms, each found problems with the other's approach. While contemplating the weaknesses of each other's work, they were able to improve on their own.

Lesson for leaders: By studying the work of a rival, one can easily see flaws, missteps, and errors. Smart leaders learn from these mistakes and take care not to replicate them.

 3. Competition increases productivity and encourages new ideas

Though Picasso and Matisse differed in many ways, they were in lockstep when it came to their feelings on productivity. 'Whoever wishes to devote himself to painting,' Matisse said, 'should begin by cutting out his own tongue.' Picasso said the same thing, though in different words: 'What one does is what counts and not what one had the intention of doing.'

While both artists had a strong work ethic, they were both more productive and creative by attempting to improve on each other's techniques. When Picasso saw Matisse's Blue Nude, he commented with frustration, 'If he wants to make a woman, let him make a woman. If he wants to make a design, let him make a design. This is between the two.'

That same year, Picasso finished Les Demoiselles d'Avignon'a painting of four prostitutes in odd, geometric shapes. He was painting not just women, but the concept of women. Moreover, the shapes were jaded and harsh and weren't collected into a pleasing, comprehensible design. Clearly he was trying to step further from tradition than Matisse had done in Blue Nude.

Lesson for leaders: Rivalries, though frustrating, raise the bar and make you work harder, smarter, and faster.

4. Competition can end in respect, not anger

Picasso and Matisse didn't dress alike. Picasso preferred a factory worker's uniform; Matisse, a simple tweed suit. Picasso shrank in Paris salons and avoided talking because he wasn't comfortable expressing complex ideas in his poor French; Matisse enjoyed artistic discussions and always managed to captivate a room.

The differences abound, yet the men did manage to form an unusual friendship. They collected each other's works and Picasso went so far as to look after Matisse's paintings by putting them in a bank vault. Matisse returned the favor and was always a firm advocate of Picasso in the public sphere.

Though they had a stormy relationship, Matisse once said, 'Only one person has the right to criticize me. It's Picasso.' 

Picasso felt the same. At the end of his life he said, 'All things considered, there is only Matisse.'

Lesson for leaders: Rivalries aren't necessarily grudge matches that end with one winner or loser. Most of the time, rivalries make winners of both parties. Rivalries can create contention, frustration, and anger, but they don't need to devolve into outright hatred. As Matisse said, 'Hatred is a parasite that devours all. One doesn't build upon hatred, but upon love.'

 

Samuel Bacharach is professor of labor management at Cornell and director of Cornell's Institute of Workplace Studies. He co-founded the Bacharach Leadership Group and blogs at BacharachBlog.com. Among his books: Get Them on Your Sid and Keep Them on Your Side. @samuelbacharach

3 Things Innovative Companies Do Best

Innovation isn't just one person's job. A highly innovative company makes innovation the norm throughout the organization, from top to bottom.

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Watch most organizations operate and you'll find that innovation typically emerges from one of three sources: From either the founder/owner (if it's a small business); from similarly small and informal groups of engaged, frontline employees who grapple with, and solve, ad-hoc problems on the fly; or from formal project teams which are specifically convened and mandated to work on a specific problem or issue.

You'd expect, therefore, that truly outstanding organizations--those that innovate consistently and at a high level, like, say, Apple, Disney, Nike or Valve--got that way by increasing those three innovation sources over time.

Interestingly, in most cases, that's not so.

More often than not, the highly innovative organization got that way not by iterating its innovative capabilities one step at a time, one employee at a time, one group or team at a time, but rather by instilling an all-pervasive, enterprise-wide culture of innovation--by making a presumption of innovation the norm throughout the organization, from top to bottom. 

Any organization can make this change. Build an enterprise that lives, eats, sleeps and breathes innovation as a natural part of its day-to-day activities. Here are three key areas to begin the process of transformation:

1. Default to cross-functional teams. In the occasionally-innovative organization, most opportunities, issues, problems or challenges are addressed, by default, on an individual or silo-ed basis.

In other words, the person who owns the challenge or opportunity is expected to solve it. He or she typically does so either by themselves or by pulling in people from their own team to help.

In consistently-innovative organizations, the default approach to material opportunities, issues, problems or challenges is to hand them over to a cross-functional team-- one that straddles silos and brings a much wider problem-solving perspective. (Note that highly innovative organizations also know how to prevent those cross-functional teams bogging down the enterprise by staying short-lived, flexible and responsive, but that for another post.)

2. Use enterprise-wide post-mortems. Merely average organizations rarely analyze their past performance in any meaningful way, and if they do, it's usually only after something has gone seriously wrong. 

Mimic the consistently innovative organization: when any substantive project or initiative is concluded, take time to learn lessons from how it was executed. As any good sports coach will tell you, there is as much to learn from how you succeeded as there is in uncovering why you failed.

Again, use people from throughout the organization to conduct the post-mortem, including, most importantly, some folks who had nothing whatsoever to do with the project (they'll provide the most objective feedback).

3. Combine 360's with rounded performance assessments. The single most striking thing I find when working with truly innovative organizations is how comfortable their people are with giving honest, unbiased, zero-agenda feedback to each other--and how good they are at it. 

In the average organization, feedback is a rare bird, and when it is given, it's usually done with hesitancy, a presumption of ulterior or ill motive, or (again) only after something has gone wrong. Building a strong, active feedback "muscle" in your organization is as strong a competitive advantage as a low cost base or a technological breakthrough, but it does require work. 

Start using 360 degree assessments, administered by a skilled and sensitive provider. The first go-round will be awkward and may not yield that much by way of useable information, but subsequent uses will get better and easier as everyone relaxes and understands that the information they provide isn't being used against them, but rather to improve how the organization operates.

Build out your performance assessment process to encompass team- and group-based assessments, not just one-on-ones. Model the process by inviting all your direct reports to get involved in your own performance appraisal. And--one last time--make sure the performance assessment process encompasses success as well as under-achievement.

Taking these three steps won't make your company a Nike or a Valve overnight, but it will begin the most important transformation your organization will ever undergo.

Les McKeown is the author of the bestseller "Predictable Success: Getting Your Organization on the Growth Track--and Keeping It There" and is the CEO of Predictable Success, a leading adviser on accelerated organizational growth. His latest book is "The Synergist: How to Lead Your Team to Predictable Success." @lesmckeown

Most Important Task You're Ignoring

Answering emails, putting out fires--those are important. But one founder suggests something else should take up at least 25 percent of your day.

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Businesses are built on a few key pillars: the idea, the team, the plan, and the execution. However, one pillar that is often neglected in the fast-paced world of email and social media is good old-fashioned relationships--with employees, investors, suppliers, customers, the press, and probably many more people involved in your business. For me, this is what holds everything together.

Too many founders I've met speed through their days on autopilot, putting out fires to keep all the balls in the air. You know the drill: get into the office, check calendar, respond to urgent emails, drink too much coffee, avert crisis... and repeat! Maybe you squeeze in some relationship building at the end of the day. It's an easy trap to fall into, but in my experience, relationship building should trump all of these things. In fact, I'd say founders should spend 25 percent of their time building, fostering, and growing relationships. 

It's actually quite easy when you break it down. Here is how I look at it: 

Step 1: Write down your list.

Pick five people in each category above who are critical to your success. Make a list. Refer to it weekly. 

Step 2: Make (genuine) contact.

Pick up the phone and see how things are going. Be sincere. Get to know them. Use your commute to knock this one out, so you won't be distracted with other work. 

Step 3: Date.

Plan dinners, break bread, go to happy hours, go skiing. Build a friendship. People like to do business with people they like--full stop. (Note: If you truly don't like a person, don't force it.) 

Step 4: Repeat. Frequently. 

A few years ago, Yes To hit a bump in the road (well, HUGE obstacle might be more accurate). After two years of phenomenal growth, we faced a major production issue with a key retailer that had the possibility to cripple the company. Our supply chain was clearly at fault and we admitted so to the retailer. Upon learning of this issue, I immediately left my family vacation and flew with my entire executive team to the visit the retailer. We rolled up our sleeves and worked with them until we found a solution. We apologized. Profusely. And together, we successfully brought this account back from the brink. 

A year after this debacle, Lance (my business partner) and I sat with the CEO of this company. He leaned over and said with a smile "if it wasn't for me, you guys would have been long gone." He emphasized to us that because he gotten to know us as people, he truly wanted to be part of our success rather than our failure. This was someone with whom we spent years building a true friendship, someone we trusted, and someone who truly changed our lives. The four easy steps came through for us that day.

Ido Leffler is co-founder and 'Chief Carrot Lover' of San Francisco-based Yes To Inc., maker of Yes To Carrots and the #2 natural beauty brand in the country. @idoleffler

3 Leadership Skills That Trump All Others

Leadership doesn't necessarily come from being the best at your trade. These three skills can make all the difference.

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The first job I accepted after college was with a large home builder in Phoenix. In my first year, the company had been taken private, carved up, and the pieces sold off. During this span of time, I worked for three different companies all while sitting at the same desk.

I stopped buying business cards for a while.

When the dust finally settled, I had managed to tag on with a small group of people who made up the Phoenix office for a California home builder entering the Arizona market.  None of us had the experience to become the division president or CEO, so the "higher-ups" brought in someone from the outside.

They brought in an accountant.

Given this was a construction company, I was a little confused why we would hire someone who didn't understand the intricacies of construction. On top of that, in an industry that consisted mostly of rough, coarse and hammer wielding men, our new leader was a woman.

A female CPA named Kathy, running a construction company.  This was not what I was expecting.

Also disconcerting to me was that, in an era when technology was creeping its way into every aspect of business, Kathy's time management system consisted of sticky notes placed in an "accordion styles" folder that, when a specific day was opened, reminded her of specific deadlines that were due. In contrast, I was methodical with time management, often keeping spreadsheets to manage my to-do's and being an early adopter of PDAs, as evidenced by my expensive Palm VII paperweight.

I had serious reservations about how her background and management style could lead such a complex business.

As time wore on, however, I became better acquainted with Kathy, as did everyone in the office and in the field. That's because while she was at the top of the organization, she made it an early priority to spend a great deal of time with everyone in the company.  From the office purchasing staff to the accountants to the dusty field personnel. She was personable and outgoing, and had an air of confidence that was contagious. Over the years, she went on to lead the company to amazing growth, and we became one of the top home builders in Phoenix.

Kathy was able to lead our team and achieve this success by having a set of skills that trumped any specific skill needed to build a home or develop a piece of property. She created cohesion and motivated her team by being:

1. Engaging

Kathy may not have known the fine details of post tension slabs or H-25 framing ties, but she knew how to manage the people who did. Weekly manager meetings, which she oversaw and facilitated, were some of the most efficient I have seen. She would maneuver around difficult construction issues by simply engaging all of the managers at the table and getting to a solution. She knew everyone's strengths and weaknesses, and she allocated "us" accordingly. Maybe more important, she did everything in a manner that was personable and often humorous, but never disrespectful or derogatory.

2. Encouraging

Kathy was great at encouragement. Over my years with the company, I had been recruited a few times by other companies. When this happened, I would always discuss it with her, both to get  an understanding of where I stood with the company as well as emphasize my desire for more responsibility. Somehow, she always managed to encourage me to stay and did so without ever promising anything (including, unfortunately, any pay bump). Eventually, the ultimate encouragement came when she promoted me to director of purchasing.

3. Enforcing

At some point in time, a sticky note with your name would end up surfacing in Kathy's filing system. That meant you had a deliverable or task due. If you had not completed it, you waited nervously for the phone call or the casual visit to your desk. If you missed your deliverable around the time of a manager meeting, you were undoubtedly going to be on the hot seat. Somehow, she had a way to instill fear for missed deadlines, which always motivated us to get things done. She also took a great deal of responsibility herself, and we never wanted to let her down. I have no idea how she did all of this, which is probably why she was so good at it.

We had an amazing team during my early years with this home builder. I was incredibly fortunate to have had a few mentors during this time, but I perhaps remember Kathy most profoundly because while she was the least likely person I would have pegged as a role model, her management style was most influential to mine.

I haven't spoken with Kathy in years, and I understand she has retired at the top of her game and is enjoying much deserved time with her family. I suppose it's time to follow up with her ... so I suppose I'll paste a sticky note in my planner to remind me soon.

If you know someone you appreciated as a mentor in the past, why not share their story below!

Peter Gasca is the co-founder of WildCreations.com and Jumpoff.co, companies that focus on kid-related products and support kid entrepreneurs. @wildcreations

Why You Should Never Compromise

Forget about trying to appear diplomatic. When you compromise, you willfully give in to mediocrity.

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I was in the middle of a conversation with a team member the other day and I caught myself almost committing to what I consider to be one of the worst sins of business leadership.

I almost compromised.

In that moment of weakness, I saw myself almost head down a path from which it is often hard to return. It would have been so easy to just give in, to let it happen.

The slip-up almost happened while I was discussing the final approvals for a marketing campaign that was intended to generate online "clicks" that would turn into leads.  I wanted to use a bold headline and concept. I knew it would work.

My team member wanted to soften the message, which in turn would soften the impact and the result. We had been back and forth for a couple of weeks about this particular campaign--massaging the wording, perfecting the call to action. Frankly, I was tired of talking about it.

It would have been so very easy in that moment to decide to compromise, in the name of giving in and keeping the peace. Then I could move on to something else on my long to-do list.

It's in this kind of compromise that some of the greatest companies fall off a cliff and enter the realm of mediocrity.

Don't get me wrong, I am not saying don't listen to others' ideas or don't listen to reason. You should surround yourself with a team that is constantly challenging you and making your company and your approach better.

I am saying that you should never sway from your stance if you know you are right. It's your company, it's your vision, you carry the burden if something fails. You also reap the greatest reward.

In my research, I have found that the bigger your company grows, the more likely it is for compromises to start creeping in. Many leaders, especially entrepreneurial leaders, are ready to get on with it, move forward. The danger lies in this impatience.

It is up to you as the leader to set the tone. Once others see that you're willing to compromise for no good reason, they'll start to do the same. Compromise then grows like a cancer and turns your great company into something average to far worse.

That's why it's important when you do back down from a decision or decide to move in another direction that you explain why you have made this new choice. Providing the reason not only shows your willingness to listen, it also provides important insight into how you make decisions for the company, so staffers learn to do the same.

When I thought about how I would explain the change in that marketing campaign's wording, I realized I was about to compromise--that I didn't agree with my team member and he hadn't provided me with a good case for why we should change direction. I knew if I allowed the campaign to be changed, and if I was asked, that my only answer could be "because I was tired of talking about it."

Check yourself when you start to give in to a suggestion or recommendation as you grow your company. If you feel you can justify it, and the change is backed by good evidence, then you're making a good decision. If the answer is anything less, then reconsider, because you're probably about to compromise.

Eric V. Holtzclaw is CEO and founder of Laddering Works, a marketing and product strategy firm. Holtzclaw's weekly radio show, The "Better You" Project, shines a spotlight on entrepreneurs' business journeys. @eholtzclaw

8 Statements That Can Transform Your Work (and Personal) Life

Make a difference--at work, in your personal life, and in the lives of others. Say these vows to yourself daily--and then follow through.

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You can be an analytical, data-driven, steely-eyed businessperson all you like, but business is ultimately about people.

That means business is also about emotions: both yours and those of the people you interact with every day.

Want to make a huge difference in your life and in the lives of the people you care about, both professionally and personally?

Say these things to yourself every day--and then vow to follow through on the commitment you make:

I will answer the unasked question.

Maybe they're hesitant. Maybe they're insecure. Maybe they're shy. Whatever the reason, people often ask a different question than the one they really want you to answer.

One employee might ask whether you think he should take a few business classes; what he really wants to know is whether you see him as able to grow in your organization. He hopes you'll say you do and he hopes you'll share the reasons why.

Your husband might ask if you thought the woman at the party was flirting with him; what he really wants to know is if you still think he's flirt-worthy and whether you still find him attractive. He hopes you'll say you do and he'll love when you share the reasons why.

Behind many questions is an unasked question.

Pay attention so you can answer that question, too, because that is the answer the other person doesn't just want, but needs.

I will refuse to wait.

You don't have to wait to be discovered. You don't have to wait for an okay. You don't have to wait for someone else to help you.

You can try to do whatever you want to do. Right now.

You may not succeed. But you don't have to wait.

Don't wait.

I will appreciate the unappreciated.

Some jobs require more effort than skill. Bagging groceries, delivering packages, checking out customers--the tasks are relatively easy. The difference is in the effort.

Do more than say "thanks" to someone who does a thankless job. Smile. Make eye contact. Exchange a kind word.

All around you are people who work hard with little or no recognition. Vow to be the person who recognizes at least one of them every day.

Not only will you give respect, you'll earn the best kind of respect--the respect that comes from making a difference, however fleeting, in another person's life.

I will give latitude instead of direction.

You're in charge. You know what to do. So it's natural to tell your employees what to do and how to do it.

In the process you stifle their creativity and discount their skills and experience.

Letting another person decide how is the best way to show you respect their abilities and trust their judgment.

In a command and control world, latitude is a breath of freedom and is a gift anyone can give.

I will stop and smell my roses.

You have big plans. You have big goals. You're never satisfied, because satisfaction breeds complacency.

So most of the time you're unhappy because you think more about what you have not achieved, have not done, and do not have.

Take a moment and think about what you do have, professionally and especially personally. At this moment you have more than you once ever thought possible.

Sure, always strive for more but always take a moment to realize that all the things you have, especially your relationships, are more important than anything you want to have.

Unlike a want, what you have isn't a hope, a wish, or a dream. What you already have is real.

And it's awesome. And it's yours.

Appreciate it.

I will look below the surface.

Sometimes people make mistakes. Sometimes they piss you off.

When that happens it's natural to assume they didn't listen or didn't care. But often there's a deeper reason. They may feel stifled. They may feel they have no control. They may feel frustrated or marginalized or ignored or not cared for.

If you're in charge, whether at work or at home, you may need to deal with the mistake. But then look past the action for the underlying issues.

Anyone can dole out discipline; vow to provide understanding, empathy, and to help another person deal with the larger issue that resulted in the mistake.

After all, you might have caused the issue.

I will make love a verb.

You love your work. When you're working that feeling shows in everything you say and do.

You love your family. When you're with them does that feeling show in everything you say and do?

Hmm.

Love is a feeling, and feelings are often selfish. Turn your feelings into an action. Actively love the people you love. Show them you love them by words and deeds.

When you make love a verb the people you care about know exactly how you feel. Make sure they do.

I will be myself.

You worry about what other people think. Yet no matter how hard you try, you can't be all things to all people.

But you can be as many things as possible to the people you love.

And you can be the best you.

Be yourself. That is the one thing you can do better than anyone else.

Jeff Haden learned much of what he knows about business and technology as he worked his way up in the manufacturing industry. Everything else he picks up from ghostwriting books for some of the smartest leaders he knows in business. @jeff_haden