Ruh Oh - Time for a butt whoppin (mine)

I love the smell of my ass frying in the morning..not.

Okay, so I put up a post trying to make a point about people going to far with the BS vs. just using the phrase I don't know.  I enhanced what goes on in my office everyday to make this point and, my bad, it appears to have taken a wrong turn.  Lots of comments raining on my blog parade. So let's hit the ol reset button and try this again with some clarity.

No, contrary to what the first post appeared to show, I am not lying or having fun and young start-ups expense. Mea culpa, oops, not explained correctly.  And, no, I'm not an anti-OS/2 person. And no, I'm not living in an Ivory Tower looking down on the little people wanting my money.  Sorry, folks, not where I was coming from.

Here's the key message I'm trying to get across.  Saying "I don't know" or "I'll have to check" or words to that effect is critically important when it comes to being able to build trust, understanding, etc, between the VC and company.  I respect, admire, and appreciate "I don't know" and "I'll check" as signs of maturity and professionalism. 

What happens way too often is people say what they think we want to hear. For example, I've lost count the number of people who come into my office and apologize for using Firefox vs. IE thinking I, as a former Microsoft person, actually cares.  I need a two way street, open communications, and the knowledge that the management team can speak their minds on issues so we can have a fulsome conversation when things go sideways or when heavy duty decisions need to be made.

So, yes, I'll flip a silly tech comment out there to watch body language. I want to get a reaction and yes, I totally understand this may be the first meeting and that many people are going to try and 'be polite' or whatever.  I always say, usually immediately, "I'm kidding" and virtually all of the time, 'the joke' breaks the ice a bit.  

As I've said countless time folks, this is all about people and relationships.  Your managerial relationship with your people, your customers and your relationship with me.

If I say in a meeting "Don't you think [Microsoft/Google/KFC] is going to offer your[app/service]", your answer is clearly important but what's critical to me is the reaction and how the question is handled.  Watching somebody respond to "I don't get it, why would anybody do this" is (to me) almost more important than the words.  The tone, body language, patience, etc, are all factors that lots of time get overlooked but matter.

For example, if I say to a coder who is giving a demo, "wouldn't that be easier to code in Cobol vs. JAVA", some of you will conclude I'm being a goof/prick/dork. But I watch the reactions while immediately saying "I'm kidding" which results in me getting a split second (or more) insight into that person.  The instantaneous and spontaneous reaction complete with body language is valuable. Plus, as I've said, that "I'm kidding" helps take some of the edge off.

Another example: I had a CEO make a statement about "the majority of women" do some action. I said that's doesn't jibe with the data I've read on the same topic, are you sure?  The CEO shot the CFO a dirty look, and tap danced around my comments clearly making stuff up to compensate.  And this small thing sent the CEO off topic for the rest of the meeting. I was concerned enough that I went to his office and did a follow up meeting because the point was minor but the reaction seemed over the top.  Turns out the CFO had simply flipped a number. So a minority thing was now a majority thing.  It was minor but this told me something about the people, the team interaction, etc.  The tap dance in my office was unnecessary.  It would have been fine with "Really? We have the data let us go check".  That's my larger point.  It is not about embarrassing anyone rather getting to know who I'm entrusting millions of dollars to.

So, while I'm sorry for creating a rukus in the comments section, please don't ignore the larger point.  Selling is good. Promoting (even self promoting) is okay.  Bullshitting is not.

Knowing the difference is, in my opinion, a character trait of a great CEO/Founder/Manager.

Thanks to all for commenting and stopping by the blog.

Comments

[Ken]

Heck, I read two years of your writing because of that post.

Anyone with the confidence and smarts to grow a business can take a goofy, probing or even moronic statement in stride. They'll face worse.

And anyone who thinks those statements are too mean or unfair probably need to loosen their panties a bit.

It's usually the smartest guy in the room who says, "Huh? What's that mean?"

Great site. Now in my favorites.

---Ken

[Greg]

Rick,

I'm with Ken 100%. In fact, I'm jealous he wrote such a good post!

Anyhow, most readers of your blog appreciate your wit and saw the post for what it was - a clever way to test an investee's BS quotient.

I deplore cynicism and negativity, but failing to do the right due diligence on relationships is your own damn fault, and that goes both ways for investees and potential mother-in-law VC.

Greg

[Martin Edic]

I think it's unfortunate that you had to 'explain' the previous post but you've done a great job.

[erica]

I'm with the posters above on this. I just got a good chuckle out of your earlier post, while nodding my head in agreement.

[Brian]

Ditto. Funny & spot-on. I have to agree with Ken - time to read the back issues...

[Pete Warden]

As one of the ones roasting Rick, I have to step up and eat my words. It was a big overreaction on my part, I should have just chuckled and moved on rather than turning it into such a big deal. I've updated my original post, and put up an apology:
http://petewarden.typepad.com/searchbrowser/2008/08/sorry-rick.html

[Phil Sugar]

I think the point is a great one, delivery maybe not as good as it could be, but I am with you if you say you heard Anderson Consulting is backing OS/2 that should really raise a flag, It would be impossible for me not to screw up my face and go huh?

I agree tons of Entrepreneurs want to show they've got it all figured out and not being able to say I don't know shows you don't even know what you don't know which is scary.

I'm going to make two points on this:

First, as an Entrepreneur its important that sometimes you act without having all the information. That's actually the only advantage we have over big corporations, its not staff, capital, etc, its the ability to just get out there and do it with nothing to lose and learn from three iterations before BigCo even makes their first watered down decision so as not to take risk.

Second, looking from the outside if I had to say who is more guilty of this behavior I would say VC's so lets make sure the shoe/advice fits for both of us. I can't tell you how many times I've talked to VC's that extrapolate the one experience that they've had with a company to all companies versus understanding each is different.

[Dan Sandberg]

I'm an entrepreneur and I'm pretty good about saying "I don't know." But if you asked your question about OS/2 I definitely wouldn't say I don't know because I do know. In my head I'd know you're either confused or mistaken and saying either would make no sense -- Why confront someone you just met about a point that has no significance to your business? I think some of those answers people gave are quite clever -- saving face without agreeing is tricky.

If you want to do a meaningful test, why not ask people something they're sure not to know -- "I heard great things about web applications developed with the Maroon 18 language. What do you guys think?" Better yet, the VCs that have impressed me the most have asked me important questions that I really didn't know the answer to.

-Dan

[martin owen]

Thanks Rick...
How many times have I read (and all other entrepreneurs should have read) "the vc is looking to invest in people".

I should hope you are looking to sort out the BSers. I would that you would support those who would not BS you compared with those who are open and wanting to build a partnership with you.

[Keith Glover]

Rick, depending on the situation, setting up people to fail by asking nonsensical questions is not always a good measuring stick. You need to remember how intimidating it is for most people to talk to someone like you in the first place. 5 Mins after the conversation they might think to themselves "did I just say that?"