Incorporating Ethics in Silicon Valley and in Startups (Part 2 of 2)

For those of you at the 2019 J.P. Morgan Healthcare Conference in San Francisco, we realize deals and investment news dominate the conference, but let’s take a moment to discuss ethics. Per our previous post where we discussed why ethics is now in the spotlight more than ever, the difference between ethics and compliance, proposed use of ethics officers, and why employees are pushing back against “bad” company actions, this post reveals an alternative to the use of an ethics officer - an ethics committee. The post concludes with how Venture Catalyst can help you with your company’s ethics needs.

Solution? Ethics Committees

Ethics is defined as a moral code that governs behavior, i.e., a company’s actions. A company has a responsibility to uphold the ethical values of the entire company’s community – including employees – and a top down approach of ethics from an ethics officer or chief executive does not work. The solution? We recommend an ethics committee, representing all facets of a company’s community, provide the ethical lens to guide the company’s business.

Ethics committees are typically used in medical/health care and research settings and can be repurposed for the tech/startup context. In a medical/health care setting, ethics committees are composed of members of the local community (e.g., hospital) who discuss the ethical issues that are associated with the health care, treatment, and well-being of a patient. The committee facilitates the decision-making process that incorporates and respects the patient’s concerns, values, and interests in order to recommend a solution that is acceptable to all stakeholders (e.g., patient, family members of the patient, physicians, and other members of the hospital staff). In addition, an ethics committee develops educational programming and policies for its institution, a valuable reference when similar ethical issues arise in the future. Finally, these committees are utilized to discuss new procedures before they are implemented.

In a research context, an ethics committee is usually referred to as an institutional review board (IRB), which evaluates proposed research protocols that involve people as research subjects. Members of the IRB are often members of the populations likely to be studied in research or individuals who have conducted research with these populations. The IRB is an important institutional safeguard to protect vulnerable populations from unethical research. IRBs evaluate all aspects of a research protocol, including recruitment, potential benefits and risks, and disclosure of results. Revisions to the protocol are almost always required by the IRB and result in a more robust and better protocol. Incorporating changes before the research begins ensures the well-being and safety of participants. These committees provide important guidance to researchers about the conduct of appropriate research and also encourage public confidence in research because the public can be confident that only ethical research protocols move forward.

Interestingly, IRBs are the most robust example of ethics committees incorporated into US law (it can be found in the Code of Federal Regulations 45 CFR 46, if you’re interested). This also means there is a large and fully developed community of practitioners who are well versed in setting these up and operating them.

An ethics committee for a tech company/startup can incorporate various aspects of the medical/health care ethics committee and IRB. Incorporating an ethics analysis by an ethics committee helps to protect companies from bad actions. Below are ten big picture recommendations for developing an ethics committee for tech/startups:

1. There should be an overall plan for ethics, called an Ethics Oversight Plan. The plan should lay out the structure, authorities, responsibilities, and relationship between internal stakeholders as it relates to ethics. This will ensure that all parties are clear on their role(s) and that there is a formalized commitment to ethics at the organization.
   
   

2. Ethics committee members should be from different parts of the company. Incorporating as many facets of the company’s “community” into the ethics committee helps to ensure that the company’s actions reflect the ethical code of all its employees. Representatives from legal, compliance, diversity, marketing/communications, coding/programming, IT, human resources, finance, operations, privacy, security, etc. are all integral members of the corporate “person”. These individuals provide differing perspectives to address complex topics to ensure that the company community’s ethical principles and values guide business decisions. Importantly, both experts and non-experts should be involved.

3. As many divisions of the company as possible should have one seat on the ethics committee. To account for availability, have members and alternate members such that any one of these individuals may sit on the committee when an ethics committee meeting is convened.

4. At least one member of the ethics committee should be a person not affiliated with the company. This person(s) should be knowledgeable about/experienced with working with the population(s) most likely affected by the the company’s product/process, etc. An “outsider” from the public provides an additional safeguard to the company by not being financially dependent or tied to the company. This person would be required to sign a non-disclosure agreement to protect proprietary information.

5. Members of the ethics committee should receive mandatory ethics training. All members should understand the purpose, role, and function of an ethics committee and one person should be appointed the chair of the committee. While all individuals have their own code of ethics they live by, it is helpful to have training on how to perform an ethics analysis and facilitate building consensus on sensitive and controversial topics. A formal process, e.g., forms, definitions, system, should be in place to help with the analysis. Training should be rigorous, e.g., similar to training required for IRB (research) committees, which have extensive requirements.

6. The ethics committee should have the authority to stop bad actions of the company. It should be able to rein in a corporation’s psychopathic tendencies. Without authority, the ethics committee is simply window dressing, and the status quo remains. Because the composition of the committee consists of multiple divisions of the company, individuals on the committee represent the company. The committee’s decisions reflect the company’s membership and ethical values, which makes it difficult to ignore. While some companies may still choose to ignore the ethics committee, citing “business decisions”, incorporating ethics into a business decision often leads to a more successful outcome. At the very least, the company should revise its proposal/project/action to reflect the recommendations of the ethics committee.

7. The ethics committee should report to the chief executive of the company and to the board. Reporting to both entities helps to ensure that even if the chief executive attempts to ignore the committee’s recommendations, the board becomes a safeguard to prevent bad actions, and vice versa. While compliance and ethics may not always completely align, in most circumstances it is in the best interest of the company to be both compliant and ethical. In certain situations, board members can be held personally liable for actions of the company, therefore it is in members’ best interest to ensure that the company is at the very least aware of any potential ethical quandaries in order to address them.

8. The ethics committee should be convened on a regular basis to discuss upcoming projects. Incorporating ethics at the inception and throughout a new project will result in a better outcome. Potential landmines be be addressed during the development phase, instead of a last-minute patchwork fix. An ethics analysis helps identify the gaps that need to be addressed in order for various stakeholders to accept the project. This model of incorporating a key perspective/component from the beginning is similar to concepts such as Security by Design or Privacy by Design, where security or privacy is built into products or programs from inception because it is less expensive, easier, and more efficient to build it in rather than try to attach it to the end where it never works as well. Thus, an “Ethics by Design” model follows the same idea. Rather than have an ethics analysis near the end of a project when it is close to completion, it would be more efficient to have the ethics committee weigh in on the project at its inception and throughout the project.

9. The ethics committee should be tasked with developing the company’s code of ethics. While a company may have a mission statement, the mission statement may or may not reflect the company’s ethical values and code. A separate and specific ethics code for the company not only defines the company culture, it also addresses how ethics would be implemented throughout the company and how to address situations when concerns arise, and in rare circumstances where ethical lines are crossed. The implementation aspect of an ethics code is critical, since it provides a mechanism for employees to have their concerns about potential ethical breaches addressed in a timely and proactive fashion. These policies provide important guidance to the company and help ensure that only ethical proposals move forward while mitigating risk.

10. The ethics committee should be convened in emergency situations. In some cases, there may be situations where, despite the best intentions of the company and its ethics committee, a crisis develops and a response from the company is necessary. While many companies will rely on an external PR team for messaging, it would be beneficial for the company’s ethics committee to weigh in as a primary analytical and solution providing body. Any lapses in oversight would ultimately fall on the ethics committee, so being part of any response is appropriate.

Location, Location, Location

From an operational perspective, where should an ethics committee be housed? Legal, compliance, diversity, or human resource divisions are often mentioned as possibilities. While all of the above often incorporate ethics as part of its responsibilities, none of these locations are appropriate. Legal and compliance are too focused on meeting requirements and checkboxes, not about discussion. Housing an ethics committee within these divisions would be like setting up a bustling coffee shop in the middle of a research library. Another option is to house the ethics committee within the diversity department. This makes sense since diversity issues are about inclusion, discussion, and moving beyond a hetero-normative view of the world and workplace. Unfortunately, this option is also not a good fit because most companies have fledgling diversity departments that have minimal support and resources, and are frequently not included in the critical path for decision making. In addition, ethics encompasses more than diversity issues, making the scope broader than diversity and inclusion. Finally, human resources may appear to be a good fit, but as many of us have experienced or witnessed, at the end of the day, human resources may appear to serve the employee, but in reality almost always lack true independence.

An ethics committee belongs in its own group that overlaps legal, compliance, diversity, and human resources, but is independent. A stand-alone ethics group sends a powerful message to the public and to employees of the company. It tells all stakeholders that the company is attuned and sensitive to ethics and that business decisions are guided by diverse representatives of the company who are dedicated to promoting ethics within the business. The public can be confident that ethics is incorporated every step of the way. Employees have a mechanism to raise their concerns and be part of the discussion and solution.

Getting It Started

Many early stage companies may not have the resources to fully invest in a stand alone ethics department. Many of these startups may not have departments for legal, compliance, HR, etc. and instead outsource these responsibilities. For these companies, we recommend using an ethics committee model which is temporarily located within an existing department purely for logistical and budgetary support, but reports to the chair of the board and the chief executive. Again, we acknowledge that many of the above suggestions may be challenging for small companies, but can still be fulfilled with commitment and creativity.

Interested in Learning More

Finally, if you are interested in learning more about how we can help you develop an ethics plan, train employees, and start up an ethics committee for your company, please contact us. We have extensive experience creating and working with ethics committees in early and growth stage companies. We help align the company’s goals and deliverables to not only be ethically sound but also business savvy and know how to grow your institutional knowledge as you grow your company.

With expertise in bioethics, regulatory issues, strategy, information and cyber security, privacy, digital health, big data, and research, we are uniquely positioned to help our clients both in the short- and long-term. Our clients attest that we help them identify and solve their immediate needs and help them anticipate and address future challenges by creating learning organizations that maintain the culture of the company throughout the growth phase of the business.

Wrapping Up

Our main wish here is for people, companies, and conferences, especially those in the healthcare and tech industries, to focus early and often on ETHICS. Let’s not wait for the next Theranos to take action. Let’s be proactive and ethical NOW.

Key words: ethics, ethics committees, ethics officer, Silicon Valley, startups, unethical corporate behavior

Incorporating Ethics in Silicon Valley and in Startups (Part 1 of 2)

With tens of thousands of people making their way to the 2019 J.P. Morgan Healthcare Conference in San Francisco, we realized that there is one topic that is rarely discussed at these type of conferences, but should be on a regular basis - and not just reactively but proactively- ETHICS.

In order to give you a solid dose of it, we plan to post back-to-back blog entries on incorporating ethics in Silicon Valley and in startups, so there will be at least one voice discussing the need for ethics in healthcare businesses.

In this and the next post, we discuss why ethics is now in the spotlight more than ever, the difference between ethics and compliance, proposed use of ethics officers, why employees are pushing back against “bad” company actions, and why use of an ethics committee is a better solution for all stakeholders. Finally, the post concludes with how Venture Catalyst can help you with your company’s ethics needs.

Ethics in the Spotlight

2018 seemed to be a nonstop news cycle of companies behaving badly. Data/privacy breaches, controversial contracts with law enforcement or government agencies, executive hubris, or mishandling of #MeToo cases by tech companies and/or startups are splashed all over the news. Many companies have a “move fast and deal with consequences later” approach, where profits are the ultimate goal and a sheepish mea culpa is offered only if a transgression is caught. In reaction, employees of these companies are starting their own movements to protest their employer’s actions. Which leaves people thinking- maybe there should be an ethics officer at these tech companies?

What is Ethics? The difference between Ethics and Compliance

Before discussing the idea of an ethics officer, it’s important to know what ethics is and why it is different from compliance. Ethics and compliance are often used interchangeably, and while they often intersect, they are separate and have different ramifications. Compliance is about following policies, rules, and laws required by internal and external entities, including regulators. Compliance often revolves around paperwork and checkboxes; it is about dotting the i’s and crossing the t’s. It is “black and white”, meaning it is obvious what one is required to do and not complying or breaking the rules results in penalties, i.e., discipline, fines, or imprisonment.

Ethics is about the values of an organization as a whole and the organization’s actions based on its values. In addition to the rules and laws associated with compliance, ethics adds values, morals, and beliefs into the mix. Ethics includes social, political, technological, religious, and philosophical issues and how they intersect with business, i.e., how they guide a company’s conduct and decisions. With ethics, the process is just as valuable as the outcome. Ethics is about talking and listening, grappling with issues, and seeing different perspectives, not checkboxes. It is a nebulous, moving target that requires gentle guidance and patience. The “answer” is rarely obvious, but instead takes creativity and careful analysis to find a set of acceptable solutions. A careful and thorough ethics discussion can result in a course of action that is ethical, compliant, and successful. Ethics is about doing what is right, which sometimes may conflict with what the law states.

While compliance is required legally, unfortunately, ethics is not. Compliance is often the bare minimum; one can be compliant but not ethical. In most cases, being ethical also includes being compliant. For example, compliance is when a tech company spends the bare minimum, i.e., requirements of the HIPAA Security Rule, to meet cybersecurity requirements and is simply hoping a breach does not occur.  A competitor, in addition to HIPAA requirements, thinks about security holistically and addresses controls that would be considered security best practices. The competitor who devotes resources to go above the basic cybersecurity requirements by constantly looking for gaps in its system is being both compliant and ethical.

While companies understand the necessity of compliance, only a minority of companies are moving to actively incorporate ethics within the business. Some companies who have a compliance officer role attempt to incorporate ethics. However, there are challenges of combining ethics and compliance into one department, primarily because often the compliance consumes all the attention to the detriment of ethics. In response, some of these companies are turning to ethics officers as a solution.

What is an Ethics Officer?

An ethics officer is a person who serves as the company’s point person for anything related to the company’s ethical culture or code of conduct. An ethics officer would have the authority to develop a code of ethics for the company’s culture, investigate possible ethics breaches, issue penalties when appropriate, and protect those who report ethics violations. Responsibilities would include ensuring that ethics are applied in all aspects of the company, reviewing business and strategy decisions for potential conflicts with the company’s culture and code of ethics, shaping the company’s position on controversial issues such as privacy, data rights, immigration, climate change, private/government partnerships that enable government to infringe on human rights, LGBTQ issues, gender parity, and investors from questionable sources. These examples are only a few of the ethical issues facing businesses, and in today’s context, often require companies to have and act on their positions. An ethics officer would also be responsible for helping to craft the messaging regarding the company’s positions on these topics.

Advantages and Disadvantages of Using an Ethics Officer Model

Supporters of the ethics officer model argue that it is important to have a person other than the company’s chief executive be the ethical and moral conscience of the company. Companies are realizing that ethics is often an overlooked aspect of a business and it is necessary to have someone devoted to ethics in order to emphasize its importance. The chief executive has competing responsibilities and may not have the time to address ethics properly. Having a person in charge of creating the company’s ethical culture sends a formidable message throughout the business. Ethics is an essential aspect to the company; important enough to have someone devoted to it. Furthermore, having an ethics officer – and more importantly a C-level executive, a Chief Ethics Officer – to turn to when ethical questions arise or when questionable behavior is revealed, buoys the idea that ethical issues are not merely an HR issue, but something serious that affects the company as a whole. For example, if the company is contemplating renewing a federal defense contract where the company’s technology could be used in drone warfare, the ethics officer would conduct an analysis and provide a recommendation on the proposal to both the chief executive and the board. Or, if the chief executive is pushing the company to enter into a murky questionable arena, the ethics officer would push back by pointing out the action is contrary to the company’s mission and values and ensure the proposal is modified in order to meet the ethical standards of the company.

While an ethics officer sounds like a good idea on the surface, we disagree that an ethics officer is the only answer. As others have stated, an ethics officer is often just window dressing, and often without any authority. For example, an ethics officer disagrees with plan X. The chief executive or board will say thank you for your input, perhaps make a few superficial tweaks, follow through with plan X, and say that yes, they ran the plan by the ethics officer who gave input (which implies the ethics officer approved plan X). Should plan X go south, then all the fingers point to the ethics officer who will likely be fired. Furthermore, putting all your eggs in one basket relies too heavily on one person to be the moral compass of the company. Maybe you can sleep at night if your ethics officer is a rockstar, but what if your ethics officer is meh? Then your ethics code of conduct is probably mediocre because it hasn’t been properly implemented and infused throughout the company. Your ethics analysis is only as good as the person who is your ethics officer. This increases risk, instead of reducing it.

Those not in favor of an ethics officer often suggest that the company’s chief executive should be setting the moral tone and culture of the company, not an ethics officer. It is of course vital that the CEO encourage only ethical behavior, set a positive example/tone, demonstrate how to deal with bad apples. This is an important point, because if the chief executive isn’t condoning or participating in unethical behavior, then employees probably won’t either. However, this perspective is a bit naïve, because it goes back to the eggs in one basket concept. Let’s be honest, most chief executives of tech and startups are younger and have limited ethics experience; often because they haven’t weathered enough years in the business, or as recent grads, ethics was not emphasized at their school. For example, most MBA programs have a requirement to take one ethics class, but one class is not enough exposure to effectively infuse an ethical culture into an organization. In addition, a chief executive/top down only approach isn’t going to work either because the days where employees simply accepted the will of their employer without questioning are waning. Just because the “boss” said the wrong ethical path was ok doesn’t always translate into employee acceptance. In response, some employees, armed with social media tools, can now highlight and call out bad behavior as a way to push back against their employer.

The Corporation as a Person

While most people suggest that tech employees who push back against their employer are able to do so because there is a shortage of people with tech skills, which gives these employees the sense they can push back without fear of termination. We would also like to suggest another reason- the concept of corporate personhood.

The “personhood of corporation” was established officially through Supreme Court decisions, most notably in 1886 and expanded in 2010 and 2014. Basically, a corporation, in certain contexts, has the same legal rights as a living person. Among the rights corporations are granted are equal protection, free speech in the form of political contributions, and limited religious rights.

The phrase “corporations are people” is a popular phrase from the documentary, The Corporation (2003), which went on to suggest that corporations are psychopaths. The film concludes that corporations conform to the usual characteristics of psychopaths, such as “callous unconcern for the feelings of others; incapacity to maintain enduring relationships; reckless disregard for the safety of others; deceitfulness (repeated lying and conning others for profit); incapacity to experience guilt; and failure to conform to social norms with respect to lawful behaviors.” While not all corporations fall under the psychopath label, it is a useful framework to analyze why employees are pushing back against their employers. Put simply, employees may be pushing back when witnessing psychopathic behaviors.

If a tech company/startup (corporation) is a person who has rights, it is safe to assume that with these rights come responsibilities. This could include an expectation for it to not interfere with other rights, or an expectation that it proactively do something. Companies have a moral responsibility as a “person” to act in an ethical manner.  The “person” in a company is not one individual, or a few people at the top; instead, all individuals at the company make up the corporate “person.” As stated above, a top down/single source of wisdom on ethics, whether it be an ethics officer or from the chief executive, doesn’t work when the company as a whole is a “person”. When senior officials at the company make decisions where the company’s actions seem to be psychopathic, it should not be a surprise that employees, an integral part of the corporate “person,” revolt because the action is in direct opposition to what the majority of the corporate “person” believes. For example, using the company’s technology to enable the separation of families at the United States border can be perceived as psychopathic because it involves callous disregard to the feelings and safety of others and the incapacity to experience guilt.

While a fiduciary responsibility drives the company to engage in actions that will result in profit, the moral responsibility of a company, as driven by its employees, may temper the need to place profits over everything else. In fact, this ability to draw back from the psychopathic act, is the action of what we would typically call a conscience.

When a person acts like a psychopath, social norms people will respond to the bad behavior. Reactions will vary along a spectrum from ignore to confront. Unfortunately, the standard model is to ignore the employer’s unethical practices, keep one’s head down, and just do the work, because employees are fearful of losing their jobs. With the exception of a few whistle blowers, employees are silent.

Recently, more and more employees are responding to unethical corporate behavior by drawing attention to it. A company that acts in a manner contrary to the company and employees’ ethical code and values now faces employees who are increasingly speaking out. Perhaps, because of the current political climate where bullies are being confronted and stood up to, employees are following the example and standing up to their employers. They identify their employer’s “psychopathic” behavior and explicitly state how it is harmful not only to others, but also to the employees themselves. People see bad behavior and no longer ignore it. When a company acts badly, they risk the wrath of its employees. Employees’ individual and collective conscience are compelling them to act.

With this conscience beginning to act as a regulator on the unbridled psychopathic tendencies, the question becomes how do we harness it in a positive and useful manner.

The Solution?

If an ethics officer is not the solution, then what is?

See the next post in the next few days for the answer. Hint: it’s not one person, but many people.

Key words: ethics, Silicon Valley, startups, compliance, ethics officers, corporation as a person, unethical corporate behavior

Tips for Networking via an Introduction (Part 2)

This post will provide tips for the connector and the contact in an email introduction. Interestingly, there are not many resources available about how to handle an introduction when you are the contact.

Throughout the post, we’ve added a recent example of where we were the connector for an asker who was looking for a new position. This post will conclude with an example of a great introduction for a mutually beneficial business opportunity (again, we were the connector).

You are the Connector of the Introduction

As the connector, you have an important role to play. While your part seems simple, there are potentially both positive and negative ramifications for you.

1. Consider Your Relationship with the Asker and the Contact

As discussed in the previous post from the asker perspective, as the connector, how strong is your relationship with the asker? While the asker is essentially doing all the work, it’s your reputation that is at risk. Bluntly speaking, would you be potentially embarrassed by the asker? If there is a remote possibility that you might regret an introduction, then it might be best to make an excuse and decline politely.

Similarly, how well do you know the contact? Would you feel uncomfortable reaching out to the contact because you barely know the person or had an awkward exchange recently with the contact? Are you always reaching out to the same contact for introductions and may be reaching a saturation point? How much time do you think the contact has to cultivate a new relationship with the asker? Think about how your reaching out would be perceived by the contact. Again, it’s your reputation that will be affected by your initial outreach to the contact.

Finally, don’t forget to consider the positive effects a successful introduction would mean for you. A successful introduction can easily bolster and reaffirm your reputation as being a valuable resource. The asker would- of course- be grateful and it is an easy “give” for you. The contact could also be grateful because the asker may be a useful addition to the contact’s network, another easy “give” for you.

2. Consider the Why from the Asker

Now consider the “why.” Hopefully, the asker gave you a short summary of why she/he would like to meet X. Review the reason- does it make sense? Do you get a good sense for exactly what will be gained from the introduction or is the reason too vague to result in any concrete actions? Something such as “X’s experience in digital mobile health app development for hospital systems” is better than “X’s digital health experience.” The why needs to convince you that the introduction would be beneficial, ideally for both the asker and the contact. While it will be easy to convince you that the introduction would be beneficial to the asker, it may be more challenging to convince you how the contact would benefit.

If you are open to making the introduction, but believe that the “why” isn’t strong enough, tell the asker that she/he needs to revise it. Be direct and say that you aren’t convinced that the contact will agree to the introduction based upon the current “why.” If you have the time, make suggestions on how the summary could be improved, but again, this is the asker’s responsibility. Of course, if you don’t believe there is a strong reason for the introduction based on the why, then politely decline the asker’s request, e.g., “Sorry, I don’t actually know that person well enough to provide an introduction. Do you mind finding someone else?”.

3. Sending the Initial Request for an Introduction to the Contact

Now that you have agreed to be the connector, it’s time to test the waters with the contact. To prepare for the possibility that the contact will decline the introduction, it is best for the connector to initially reach out to the contact and gently inquire whether the contact would be open to the introduction. It’s important to not include the asker on this email because it prevents awkwardness and embarrassment should the contact decline the invitation.  

The email should include the “why” summary from the asker - should just be a cut and paste job from the asker’s email. If appropriate, you might want to add your two cents - how the asker and contact have XYZ in common or in what context and how long you have known the asker. If the contact has a good relationship with you and trusts you, your personal insight into the asker will be appreciated as the contact contemplates whether to agree to the introduction. And finally, in closing, be sure to include an opportunity for the contact to say no without any awkwardness. Something simple such as “Would you be open to the introduction- no big deal if it isn’t a good time” is sufficient.  

This email could also include something personal from you to the contact, inquiring about the contact’s vacation, or the latest update on your company, just to keep yourself connected to the contact. The email should not be too long, since it is simply a quick inquiry about the contact’s openness to an introduction.

Here is an example of the initial request for an introduction to the contact:

I am reaching out to see if you would be open to an introduction to a friend of mine, Eve. Eve is based in San Francisco, and similar to your experience a few years ago, Eve has recently left her 10+ year career in investment banking to pursue a new career path in impact investing/social finance. During her search, she noticed we were connected via LinkedIn and asked if I could facilitate an introduction to you. Eve is a smart, hard worker and a good person with whom I think you will enjoy connecting. While she was a very good banker, I’m not at all surprised to see her transitioning into something that is more meaningful to her. Please let me know if you are open to an introduction and to have a call or coffee with Eve if/when time permits.

After you have sent the email to the contact, you may want to email the asker to let her or him know you emailed the contact. In the email to the asker, include “feel free to remind me to follow up with the contact if you haven’t heard anything from me in 7-10 days.”

4. Sending the Formal Introduction

Once you receive the contact’s approval for the introduction, now is the time for you to write a formal email. Include the contact and asker in the To: line and include full names of both parties in the subject line.

Be concise and direct- provide names, titles, and something great about the asker and the contact. Complimenting both people provides background information and primes them to be proud of their accomplishments and perhaps more open to offer assistance. Your spiel helps make the connection on why the asker and contact should meet. Again, don’t overstate anyone’s abilities or accomplishments, but provide the context on how they could be helpful to each other.

Close the email with something such as “I hope you two will connect and find ways to help each other.”

Here is a template of a formal introduction request:

Intro

Contact,

Meet ASKER, who's a friend from HOW KNOW, who BACKGROUND, and is in LOCATION. Thought you'd enjoy talking as REASON FOR INTRO.

Asker,

Good seeing you WHEN. Hope things are going well.  Meet RECIPIENT, my friend from HOW KNOW, who BACKGROUND, and is in LOCATION.

I'll leave it to you two from here to coordinate.

5. Now What?

Great job in being a connector; your role is done. Ideally, the asker and contact will reply with some dates/times to meet/chat. You should be removed from the email chain by either the contact or asker. After the meeting/call, hopefully the asker and/or the contact will update you how things went and thank you for setting up the introduction.

As part of the “give give give” mantra, don’t expect anything from the asker or the contact. Maybe they will return the favor, maybe they won’t. It doesn’t matter because the most important thing is that you built up your long-term relationship with the asker and the contact, which builds trust (T in TEA). As we have mentioned in the Collecting Challenges post, lasting relationships are built on trust, and by facilitating a useful connection, the asker and contact have increased their trust in you.

You are the Contact of the Introduction

1. Evaluate the Initial Request for an Introduction from the Connector

First, how well do you know the connector? Is the connector someone whom you know well and trust her/his opinion? You would probably agree to the introduction if the connector has been helpful in the past in a personal or professional capacity. Less likely to agree to the introduction if you have no real history with the connector, e.g., just met at a networking event. Trust is key and is the foundation for lasting relationships. If you don’t know and trust the connector, might be better to decline the invitation.

Second, how interested are you in meeting/talking to the asker? Does the reason provided by the asker/connector make sense? Consider doing a quick google search on the asker. Would this person add value to your network? From your standpoint, what are the benefits and drawbacks to agreeing to the introduction. While it seems counterintuitive to consider the disadvantages- after all, what happened to the “give, give, give” mantra- one should only give if you are in a position to give. For example, if you are hanging by a thread with your own responsibilities, now probably isn’t the best time to agree to be a mentor. By disadvantages, we are merely stating that you need to be a good place in order to give fully and freely. A partial give may not be helpful to anyone. Think about your current commitments and whether you have the time and attention for the introduction.

Related to the above, if you are going to agree to the introduction, then do your best to be helpful. You have a responsibility to do a good job. If you think you can’t be very helpful, or don’t have the time, then consider declining the introduction. It doesn’t help anyone to waste time if you don’t think the introduction could be helpful. So don’t feel compelled to automatically say yes.

If you do decline the introduction, be graceful and diplomatic about it. Phrases such as “timing is bad at the moment because of work deadlines” or “while I would love to help, I don’t believe I would be the best contact” are neutral and not offensive. If appropriate, think of an alternative suggestion for an introduction and if the connector is not familiar with that person, offer to make an introduction. Recommending someone else conveys to the connector (and the asker) that you are still trying to help where possible. It’s part of your give as the contact.

2. Replying to the Formal Introduction from the Connector

In many instances, after the formal introduction from the connector has been sent, the asker will reply first with suggestions on when to meet/call. But if you as the contact choose to reply first, then make it convenient for yourself. Would you prefer a call or an in-person meeting? When will the meeting/call occur? In your email response, recommend 2-3 times and dates for the meeting/call for the asker to choose from.

Thank the connector for the introduction and respect the connector’s time by moving the connector to the bcc: line to take the connector off the follow-up emails. Something such as “Thanks, Eric, for the introduction (moved you to bcc)” is sufficient.

3. In-Person Meeting or Call with the Asker

If you have an in-person meeting, it could be assumed that the asker will pay for coffee, lunch, etc. since the asker requested the introduction. However, if you are the more senior person, then it might be appropriate for you to pay, depending on the purpose of the meeting. But neither should be assumed so just play it by ear.

If the asker has a list of things to cover with you or ask of you, hopefully, it will be limited to 3 topics or asks (see previous post, You are the Asker). If the list of things is too vague or the ask is too broad, feel free to point it out to the asker. You wouldn’t have agreed to the introduction if you weren’t already primed to assist where possible. The ask needs to be specific enough where you can be confident you can actually help. For example, if the asker says “find me a job in social media marketing”; this ask is too broad and doesn’t permit you as the contact to take concrete steps to help the asker. Instead, an ask such as “could you connect me to someone in your digital marketing department so I can figure out how to leverage my copywriting and photography experience and apply it to social media marketing” is an easy yes for the contact. Don’t be afraid to only agree to something specific and focused. It permits you to help explicitly and ensures that you do your part by doing a good job. Agreeing to something vague may not pan out for you or the asker and doesn’t put you in the best light should your action not deliver tangible results.

Finally, don’t feel bad by not agreeing to help with all the asks from the asker. If you have no way to assist on a particular ask, be honest. Better to decline an ask than fail to accomplish it. After declining, you can discuss with the asker a different topic/ask where you have the ability or resources to help. Another scenario may be that you do not have the time to address all the asks, and you should not feel bad if you cannot help with everything. The asker should be understanding and appreciate any assistance you can provide.

4. Follow Up

In theory, the asker should offer to email you a follow-up list of things that you agreed to do. If the asker doesn’t, remind the asker to provide you with concise, bulleted reminders. Remind the asker to also include any relevant documentation to the email, e.g., resume, investor overview materials, etc. Having all the necessary information in one email makes it easy for you to forward as part of your follow up.

Although the asker will probably update the connector, you might want to also reach out to the connector to thank him/her for the introduction. It is nice to thank the connector for thinking of you, and also affirms your willingness to entertain introductions.

Conclusion and an Example of a Great Introduction

Networking should not be a chore, so keep it light and fun for the asker, the connector and the contact. Networking via email introductions is a great tool to use as long as everyone is respectful, efficient, and considerate.

And to sum it up, here is a recent example from Eric of an email introduction for a mutually beneficial business opportunity. Eric was the connector.

Emails from Asker to Connector:

Email from Asker to Connector Requesting Introduction to Contact:

Hi Eric,

I saw that you are connected to XY at Company XYZ. Given her extensive experience and awesome background, I’d love to talk with her to see how our companies could assist each other. Would you mind introducing us via email? If yes, I’ve included additional information below that you can simply forward to XY.

Thanks, AB

~~~~~~~~~~~~~~~~~

Hi XY,

Eric thought it could be beneficial to meet, given Company XYZ's commitment to pro bono, and the overlap with Company EFG’s mission to increase access to justice by helping maximize the ROI of programs.

I've heard great things about Company XYZ’s work with Organization X, as well as Organization Y, and was hoping to connect with you or your committee on an exploratory basis to understand if there might be value for Company XYZ regarding our management platform.

For background, I founded Company ABC to help legal teams (like O, P, and Q):

• Capture all metrics and outcomes across the organization to determine ROI and impact

• Decrease high administrative costs that have a negative impact

• Boost participation and engagement by connecting all offices

If any of that resonates as being a priority, might you be available for a short call?

Sincerely, AB

Emails from Connector to Contact:

Initial Email from Connector to Contact:

Hi XY,

Hope you and your family are doing well. I am reaching out to see if you would be open to an introduction to a friend of mine, AB. AB is based in Chicago and has her own management firm targeting firms with pro bono committees. I know you are in NYC, and while AB’s firm’s clients are primarily in the midwest, , she is also looking to make connections in NYC, which is what made me think of you. I think she would be a potentially useful person to know, but I’ll let you tell me if you think this is an okay use of your time. I’ve included AB’s request for an introduction below.

Thanks, Eric

~~~~~~~~~~~~~~

Hi XY,

Eric thought it could be beneficial to meet, given Company XYZ's commitment to pro bono, and the overlap with Company EFG’s mission to increase access to justice by helping maximize the ROI of programs.

I've heard great things about Company XYZ’s work with Organization X, as well as Organization Y, and was hoping to connect with you or your committee on an exploratory basis to understand if there might be value for Company XYZ regarding our management platform.

For background, I founded Company EFG to help legal teams (like O, P, and Q):                          

• Capture all metrics and outcomes across the organization to determine ROI and impact                

• Decrease high administrative costs that have a negative impact                                                         

• Boost participation and engagement by connecting all offices

If any of that resonates as being a priority, might you be available for a short call this week or next?

Sincerely, AB

Formal Email from Connector to Contact and Asker:

XY,

Thanks for talking to AB!  She's great and lives in CHI so phone/email probably best. See info below.

AB,

XY is terrific; in NYC.  She's not sure she's the right one but can likely connect you with the right person.

Best, Eric

Email from Asker to Contact and bcc: Connector:

Thank you so much for the introduction, Eric (moving to bcc), and great to meet you, XY!

I've heard great things about Company’s XYZ’s legal pro bono work, especially around X and Y, and love to get your perspective on their program and process to see if it's worth connecting with the pro bono team.

Would any of the below windows work to connect next week (times in EST)?

Wednesday, 3/14, between 11 AM and 5 PM

Thursday, 3/15, between 10 AM and 1:30 PM

Friday, 3/16, between 10 and 12:30 PM

What is the best number to reach you?

Looking forward, AB

Key words: email, introduction, asker, connector, contact

Tips for Networking via an Email Introduction (Part 1)

Now that you have mastered the art of in-person networking and follow-up, let’s discuss another form of networking- networking via an email introduction. This type of networking often generates more concrete connections and results because of the personal component involved since one person knows the other two people to make the introduction. These introductions are generally a win-win for all parties involved- the asker for making a new connection/lead/job/mentor/friend, the connector for providing a “give” (i.e., building up good will) and expanding personal and professional networks for others, and the contact for hopefully making a new connection/lead/job hire/mentee/friend.

While this type of networking seems simple, we often see examples of “bad” introductions from the asker, the connector, and the contact of the introduction. Problems of inefficient emails (multiple emails needlessly exchanged before decisions are made), vague emails without a purpose, and inappropriate tone and style are common. This and the following post will provide tips for all three parties for a successful email introduction using the double opt-in approach. Throughout the post, we’ve added a recent example of where we were the connector for an asker who was looking for a new position. In a future post, we will include a second example where we were the connector for a mutually beneficial business opportunity.

You are the Asker for the Introduction

1. Researching a Contact

Many introduction/networking tips provide the sage advice of researching the contact so that you know how the introduction could be beneficial to both the contact and to you. But what does this mean?

Researching a contact is primarily about the “who” and “why” questions. In most circumstances, you already know the answer to the “who” question, because it was someone you came across and want to meet. But in some situations, you might not have a specific person in mind and you are simply researching your connector’s large network to find someone who may useful to you.

The answer to the “why should this person be introduced to you” question is important and often the most difficult to answer. The “why” is the crux of the email and needs to be thorough yet concise. You should have a few sentences on the context of the request of the introduction and explain why it would be in everyone’s best interest to be introduced. It should be relatively easy to explain how the introduction will benefit you, but think about how the introduction could be useful to the contact. A good answer will encourage the connector to make the introduction because she/he believes it could be a positive connection and is an easy “win” for the connector (kudos for facilitating a valuable connection). A poor answer makes it less likely the introduction will be made because of potential ramifications on how the introduction could affect the connector’s relationship to the contact.

Here is an example to the “why” question in the context of changing careers:

As you know, I am in the process of changing careers and am interested in learning more about impact investing. Mary operates in a part of the impact space that I don't yet have many connections. Mary was at Goldman for 10 years so hopefully she will be willing to help a fellow former banker. Her team is hiring and I think I would be a good fit.

2. Testing the Waters with the Connector

Now that you have identified the contact and written a concise blurb on why it would be beneficial for the two of you to be introduced, it’s time to reach out to the connector with an initial ask email.

The first thing to consider is how strong is your relationship with the connector? Are you really good friends or acquaintances or someone you just recently connected with yourself? The intimacy of your relationship with the connector determines the tone, style and “boldness” of the ask. For example, if you have been close childhood friends with the connector, you can be less formal with this initial email and maybe more forward in your request for the ask. Or if you don’t know the connector very well, then prepare yourself for a potential denial for your request for an introduction. For this type of connector, insert a reminder how you and the connector know each other or when you last saw each other, if relevant.

Second, think about (or ask the connector) how well the connector knows the contact to gauge how strong the relationship is. A simple “How well do you know Jane Smith?” together with some context, “My sales person came across her company and wants to see if they would be a good fit for us. If you think you could be a good person to make the intro, I can forward a clean intro request you can forward on” is enough. The stronger the relationship between the connector and the contact, the more likely the introduction, especially if the connector also knows you well. If the connector is just an acquaintance, then the connector may not be the best person to make the introduction.

Third, include a sentence that states that if the connector says yes to making the introduction, tell the connector that you have included below a formal request for an introduction that the connector can simply forward to the contact. These sentences should include a brief summary about yourself, who you want to be introduced to, and why the introduction would be useful to yourself and potentially the contact (which you should have already done in Step 1 above). Because the connector is doing you a favor and is probably busy, you should do as much as possible to make the connector’s job easy.  Not only will the connector appreciate the ease of the request, it also increases the likelihood that the connector will send the email to the contact in a timely manner.

Next, always give the connector a graceful out, meaning give the connector a way to say “no” without making him/her feel bad. Keep in mind that there may be a myriad of reasons why the connector doesn’t feel that it is appropriate to make the introduction and most of them have nothing to do with you. Maybe the relationship with the connector and contact is awkward at the moment or the connector knows the contact is dealing with a major setback and not up for meeting someone new. Whatever the reason, trust that the connector has everyone’s best interest at heart. So be sure to give the connector a chance to say no with no hard feelings.

In addition, when there is a possibility that the connector will not agree to make the introduction, inquire about an alternative solution. Asking if the connector has someone else in mind for you to speak to provides an alternative that the connector may be willing to do. While LinkedIn is a good resource to examine a person’s connections, it isn’t the be-all-end-all listing of a person’s network. The connector might have someone better for you to meet.

Finally, don’t forget a nice thank you.

Here is an example of an initial email to the connector (it is casual because the asker and the connector are friends):

… with that said, I think the path of greatest interest is impact investing. I’m looking for either investment professional roles or structuring of products to bring more investment capital to mission driven businesses. I’d love it if you had any suggestions on firms you like or people you know in or around that space. I’ve taken a look at your LinkedIn connections and have a few people (see below) I’d be interested in meeting if you wouldn’t mind facilitating an introduction.

[Names and the “whys” removed]. Let me know if you have any thoughts or questions.

3. Replying Back

Great, your connector has sent the email. Now what?

In your reply, first move the connector to the bcc: line. Thank the connector, something such as “Thanks Eric, for making the intro (moved you to bcc)” is sufficient. Next, address the contact and say something such as “looking forward to meeting you.” Here is the most important part of your reply- provide dates/times to meet/call. We cannot stress enough how much time and email exchanges are wasted because concrete information regarding times to meet/chat is not proposed. Every email should be relevant and efficient. Using one email exchange to say nice to meet you, and then another email exchange to say that next week is good, and then a third email exchange to propose dates/times are not efficient. In most cases, plans can be made with two emails total.

If you prefer to meet in person, suggest locations that would be convenient for the contact. As part of the offering of meeting details, tell the contact that you are also available after work hours on so-and-so days if that is an option for you. End the email with a request for the contact to provide dates/times if the ones you have suggested don’t work for the contact.

Here is an example of reply from the Asker:

Connector, Thanks for the intro. I’m moving you to bcc: to spare your inbox.

Contact, Connector says great things about you and I look forward to meeting.  Are you available Tuesday at Noon? If not, please propose a few days and times that work for you (Wednesday and Thursday afternoons are open for me).

4. Meeting the Contact

We won’t go into too much detail here, since you know the drill- arrive a little bit early/call exactly on time, dress appropriately, take notes, etc. Do things that make yourself and the connector look good and don’t say/do anything that may reflect poorly on the connector. Think of ways you could be helpful- if appropriate, ask the contact for a challenge- and think of ways you could be helpful.

As part of your preparation for the meeting/call, make a list of things you would want to talk about/ask for assistance with. And then whittle the list down to no more than 3 topics and/or asks. Having too many topics or asks makes you a burden to the contact and adds to the person’s to do list. If you have any asks, be sure that the asks are specific and something the contact can actually do or have a concrete opinion on without too much effort. For example, asking the contact “What is your perspective on the future of private-public partnerships in public housing sector in Los Angeles” is better than “What do you think about private-public partnerships?” Or “Can you introduce me to Mary in your design department” is better than “Can you get me a design job?”

Remember to respect the contact’s social capital and relationships and not to abuse it by asking the person to overextend her/himself. And finally, don’t forget to give the contact an “out”, i.e., an opportunity to say no to the ask without making the contact feel bad. You don’t want the scenario where every time the contact thinks of you, she/he recalls the feeling of awkwardness. Giving the contact a graceful exit option increases the odds that the contact will not associate you with negative connotations, and also increases the chances of the person helping you down the road.

Offer to pay for the coffee, meal etc., since the contact is doing you a favor. It is just a nice thing to do. Perhaps the contact won’t accept, or will insist on paying (especially if the contact is senior to you), but your gesture goes a long way.

5. Thank you and Follow Up

After the meeting/call, send a thank you. The form of the thank you, e.g., handwritten note or email, depends on the message. If the message is simply a thank you, a note might be best - remember to use appropriate stationary since the stationary is a reflection of you. But if the message also contains follow-up items, then email is better because a note could be misplaced.

In a follow-up email, be sure to include a list of things you will do. Where you already have answers or additional information requested by the contact, include these relevant materials as text and attachments. Make it easy for the contact to simply forward the email to the next person, which increases the odds that the contact will follow through. If the contact agreed to do things per the conversation, it would be helpful to include a list (use bullets). Again, make it easy for the contact.

And finally, don’t forget to thank the connector and provide an update on the meeting. It is helpful in case the contact follows up with the connector about the asker. Providing an update also makes the connector feel good, especially if the meeting went well, and validates the connector’s faith in you. A small gift to the connector would be nice, but not necessary. (Recently, Eric received an Amazon gift card, which was a nice touch from the asker.)

6. No Response from the Contact

You sent your reply with proposed dates/times, and a week has passed with no response from the contact. Send a follow-up email (with new dates/times if appropriate) and don’t include the connector on this email. Give the contact a week. If no response to the follow-up email, email the connector and inform the person that you haven’t heard from the contact. Hopefully, the connector will check in with the contact or give you feedback on why the contact has not reached out to you. It’s important to keep the connector in the loop so the connector doesn’t feel like you somehow dropped the ball (and makes the connector look “bad”).

The next post will provide tips for the connector and the contact and will also include an example of a successful email introduction chain.

Key words: email, introduction, asker, connector, contact

Follow-Up Tips for In-Person Networking

Congratulations- you applied the previous blog post’s tips to your recent in-person networking event. Now what?

Immediately After the Networking Event

1. Review your Performance

Write down some thoughts about your performance. How did you do? Again, it’s not about quantity, i.e., how many people you met, but the quality of your interaction with the people you met. Did you make a connection and collect a challenge? A few memorable interactions are better than many generic ones. What did you do well- work the room, remember names, perhaps make a connection for someone in the moment? What didn’t go so well- awkward encounter, you spoke too much about yourself, spent too much time with people you already know well? Any thoughts about your performance are helpful. As you network more, you will see trends in your strengths and weaknesses and can make goals on how to address any weaknesses.

2. Enter your Notes about the People You Met into a Tracking System

Ideally, you remembered your pen and took notes about the person you met on the back of the person’s business card or took notes via your phone. Now is the time to enter the names and notes into a tracking system. The system can be an Excel spreadsheet, contacts database, and even an old school business card holder. Pick a system that you will actually use. The key point is not what type of system you use, but your ability to review your network regularly. As you meet new people and collect challenges, it is helpful to have the information all in one place. By periodically reviewing the contents of your system, it keeps people and their challenges in your mind. It also can be a reminder for you to contact someone when you come across his/her information.

Follow-Up Tips for In-Person Networking

Remember that the purpose of the follow up is to ensure a lasting connection. The follow up is where you remind the other person that you are available to assist, not for you to make a pitch or an ask.

1. Reach Out (Preferably via Email)

Ideally, reach out to the person within 24 hours. For most people, reaching out means sending the person an email. Others may chose to call or text, but email is probably the most efficient route because you can add in detail (too much detail in a text or voicemail would be odd). Many people use LinkedIn as the initial reaching out, but we would suggest waiting to use LinkedIn or other forms of social media (see below).

2. What your Message should Say

An email should be concise, polite, and humble. It should remind the person who you are and where you met. Most importantly, it should include a reference why the person would remember you. Give your interaction with the person some context. Maybe you chatted about the game that was happening during the networking event, how you both know someone in common, or found out that you both went to the same school. Reminding the person of the connection you made during the conversation is important and keeps the person interested in reading the rest of the email. When you send the message, the subject line of the email should reference where you met the person and either the challenge or the “special” reference to your conversation. For example, Boston Biotech Conference, Need for Angel Investors, or Tribeca Community Block Association, Duke connection.

Next, if you collected a challenge from the person, briefly restate the challenge and how you either are thinking about how you can help or have an introduction/proposal that may help solve the person’s challenge. If no challenge was collected, then close the email by saying how you look forward to staying in touch or talking again soon.

Unless your in-person conversation was about the person assisting you, avoid making an ask. As we mentioned in the collecting challenges post, give multiple times before making an ask. But if your follow-up email is in reference to what the person said he or she would do for you, then feel free to remind him/her of what was offered.

Finally, if you reached out via email and plan to be away soon after sending the email, set the auto office feature outgoing message to state when you will be back. It would be awkward if the person replied and there was no response from you for an extended period of time.

3. Reaching Out via Social Media

While some people like to use LinkedIn as the follow up, we suggest using a LinkedIn request to connect one week after sending the initial email for three reasons. First, if the person is constantly receiving LinkedIn requests, yours may get lost in the masses. Second, the person may just accept the invitation without reading the text of the message. Third, when the person sees your LinkedIn invitation, it serves as a reminder to reply to your email, if he/she had not already. The message via the LinkedIn request should follow the same format as discussed above.

Many people will have other social media accounts, i.e., Twitter, Instagram, Facebook, Snapchat, etc. The question of whether to connect via these depends on two things. First, is the account a professional or personal one? The Facebook account for a company is dramatically different from the Facebook account of the person you are connecting to. It might be prudent to first connect on a professional level and then decide later whether to make the request on a personal level. Of course, this is assuming you also have a professional/work type of account. Second, what is your comfort level connecting with someone via a social media account? How detailed is your account? Is it bare bones or so rich that your personal and professional lives are intertwined with no boundaries?

Both types of accounts are fine, but if you connect with the person then he/she will also have access to your account. Some people have fluidity between their professional and personal lives and such openness is appropriate for their professions while others insist on firm boundaries with little overlap in their social media accounts.

4. No Response or a Rejection

Let’s face it, not everyone will be interested. That’s ok. It’s part of the networking process. Let’s say the person doesn’t reply back to your initial email outreach. People are busy. If there is no response (or acceptance) of the LinkedIn or other social media connection request, wait one month. Then reach out using both email and the LinkedIn request one more time. If there is still radio silence, then move that person into a separate file in your tracking system. Why keep this person in your contacts? Because the person may not be open to networking now, but circumstances change. Or maybe the person felt no need to reply because it wasn’t urgent. Unless you receive an explicit “no thank you” let’s assume the best in people.

Of course, if you do receive a flat out rejection, that’s ok. It might sting, but at least you received the professional courtesy of a response. In the days of ghosting people, receiving a response is better than no response. Plus, as Jia Jiang, author of Rejection Proof: How I Beat Fear and Became Invincible Through 100 Days of Rejection (2015) states - rejection is something to practice so you can learn from it, e.g., overcome fear, become more resilient, and learn how to turn a no into yes.

5. In-Person Meeting

Sometimes the next step after connecting is an in-person meeting, perhaps to discuss the person’s challenge in more detail or just to meet for a coffee. As we’ve stated before, the purpose of the meeting shouldn’t be about your agenda. Most likely, the conversation will eventually lead to you and your business, so there is no need for you to make a pitch.

Ideally, pick a location convenient to the other person or at the very least halfway between you both. The location should be easy to get to and bustling but not too loud where you cannot have a conversation. While you might be tempted to pick a place you’ve never been to before, unless you can confirm it meets the criteria above, best to pick a familiar site. In addition, be sure to be a few minutes early so you can secure seating.

At the meeting, the same rules apply about attire, shoes, eye contact, etc. from the previous post. Be generous- offer to buy the person you are meeting coffee, lunch, etc. If the person you are meeting is senior to you, he or she will often treat you. Be polite and grateful. Be sure to take notes so you will do what you say you will do. After the meeting, again, follow up with the person in a timely manner.

Conclusion

Congratulations on successfully following up with people from the in-person networking event. The next post will discuss how to have someone introduce you to a particular person in your friend/acquaintance’s network and connect people via email.

Introduction to Networking and Tips for In-Person Networking

Networking

Now that we’ve covered how collecting challenges is important, let’s move on to applying this to the intricacies of networking.

Networking is a skill.  For some it’s innate and natural; for others it’s learned. But to be sure, everyone can improve and everyone can be good at networking.  

JEREMY:  People are not typically taught to network. There is no class in high school, college, or any graduate program about networking.  Never feel bad for not knowing how to network. While there are plenty of resources about networking and the big picture, there are few that cover the details on how to network.

CHRIS:  As with all worthwhile tasks, networking is a skill that becomes easier the more it is practiced. Many people will state that networking is mentally taxing for them and it is important to remember that even the best networkers might have tough moments where they have to push through.

Mostly, we learn by example.

ERIC:  I was an only child so grew up a little shy. But my parents taught me a lot about how to engage people. My mom is one of the friendlier people you’ll ever meet. My dad set several good examples - such as addressing people by their name and asking them how they’re doing, and remembering small details about people regardless of who the person was or what that person did for a living. He also constantly challenged me to say hi to people or he’d simply make the intro (now my friends see where I get that trait!).

JEREMY:  I learned how to be a better networker by going to policy school. I admit, I was really unaware of how I presented ideas and interacted with others. In a really stereotypical way, I was just a scientist in training with average social skills compared to my public policy classmates. This included things as basic as dressing more appropriately for meetings, thinking about the style and format of my communications with others, and controlling (or trying to as I talk a lot!) the amount of speaking I do.

Why are we writing about networking?

ERIC:  Several of my friends have asked for tips on how to be a better networker after seeing how I do it and how much I enjoy it.

ALL:  To be fair, it’s a major part of our job at Venture Catalyst. We are constantly meeting clients, founders, investors, prospective customers, vendors, friends, and more. Our main job is to connect people. We try to understand what people need or could use, and help them achieve that.  

ALL:  We will provide various tips, additional reading (there are many networking experts out there, many of whom are worth reading - see the list at the end), exercises and applications of our learning - many of which can be applied immediately.   

Principles & Goals of Networking

ALL:  Our goal is to help people succeed. We get to know them and their professional and personal goals to learn about people as individuals.  

ERIC:  A principle behind networking is to not be a jerk. Some people who seemingly have big networks don’t necessarily have good, strong networks. Often times, that happens when you’ve spread yourself way too thin or perhaps networked merely for the sake of helping yourself. As Gary Vaynerchuk said, it’s necessary to give (several times) before you should ask (Jab, Jab, Jab, Right Hook - 2013).   

JEREMY:  A related principle is that you have to really care; if you don't people will see through you and your tactics. Generally, people want to legitimately improve themselves and help others. In the sharing or collaborative economy, relationships are vitally important.  

CHRIS:  Networking is not only an opportunity to learn about the other person, it should also be a time where you build your brand and make the case why others should care about your industry. For example, I often use networking opportunities not to actively seek out new clients, but to educate the person (and his/her industry) about information protection, and cyber and information security. Too often companies only think about information risk management after a breach has occurred, but I’d like them to leave our interaction understanding that appropriate information protection and a strong security strategy is a competitive advantage.

SUSIE:  It’s important to know yourself and your personality in order to be a successful networker. If you are more of an introvert, figure out some tricks to help make you comfortable, such as having another person with you to network as a “team.” As you become more at ease, move away from each other and meet people individually. Should you find yourself in an awkward moment, find your partner who will introduce you to the person your partner was talking to. And then repeat. Or if you are known to be a talker, remind yourself that you should be asking questions and listening, or have a plate of snacks to eat to encourage yourself to listen more.

ALL:  One of the many networking resources available, Patricia (Pat) Hedley’s Meet 100 People: A How-to Guide to the Career and Life Edge Everyone's Missing (2017) is particularly great. She discusses serendipity and how surprise and good fortune smiles upon those who are not afraid to put themselves out there, outreach, and spot and act on opportunity. These are key principles to successful networking.

And importantly, don’t forget to collect challenges, which is a key component of networking. You can read more about this specifically in the previous post.

In-Person Networking

This post will focus on networking in person- the next post will examine networking via email or social media. There are a lot of general tips about in-person networking, such as smile, be enthusiastic, know current events, etc., so we focused on tips that are not normally discussed.

1. How to Decide Whether to Attend a Networking Event

If your time is limited, generally speaking, an invitation to a networking event from someone you know is probably a yes, you should attend, while a generic invite to a networking event might be more of a no. The exception to the generic networking invite is if it is an event that is specific to your industry or an industry you are interested in.

Once you rsvp yes, then you should always go. Don’t rsvp to everything and not show. It looks bad, especially if the event has pre-made name tags because it is obvious that you didn’t show up. In addition, the more networking events you attend, the more likely you will be invited to more, which can lead to new opportunities.

2. Prepare for the Networking Event and Make 2-3 Goals

As others will say, try to find out who might be at the event in advance so you can create a list of people to meet. In addition, make 2-3 goals specific to your networking skills. For example, a goal could be practice moving about the room. Or a goal could be inserting yourself into an ongoing conversation at least two times during the event. By having concrete targets to evaluate, you can learn from the networking event and improve your skills. You will learn what are your strengths and weaknesses are.

3. Attire and Don’t Forget about Your Shoes

People generally remember to dress appropriately, but here is a special reminder about your shoes. Remember in Silence of the Lambs when Hannibal Lecter told Clarice Starling she had a good bag and cheap shoes? Choose shoes that convey the look you want to present. If you are wearing dress shoes, make sure they are polished. Sneakers and other shoes are fine, as long as it fits who you are and the context. Taking that extra step with your shoes conveys confidence and completes the image of who you are.

4. Location in the Room

Be strategic on where you will be located in the room. Near the bar/refreshment area is always a safe place because almost everyone will at some point gravitate to that area. Starting at the periphery of the room may be good if you are hoping to locate a specific person.

Food station- while food may be available, try not to indulge while networking. It is often distracting and awkward and makes you less mobile. If you must eat, do it at the very beginning as quickly as possible or at the end. People are often not as engaged while eating because they are too busy, well, eating. But use other people eating to your advantage if it is appropriate. For example, approaching a group of people juggling food and drink could leave a vacuum in the conversation (because they are busy eating), where you can talk and others listen.

5. Make an Effort to Talk to Older People and People who are not Homogeneous with your Social Circle

In addition to the person(s) you are explicitly interested in meeting, make an effort to talk to older people and people who are not homogeneous to your social circle. Perhaps unconsciously, people generally meet people who are similar to them in age and race/ethnicity. Make an effort to meet people outside of your typical circle. Expanding your network beyond your norm makes your network stronger and more valuable. For example, older people are generally in senior positions in their careers. have established networks, and have great insight. Similarly, including people from different races/ethnicities provides more depth and diversity to your network,  especially important for referrals and hiring as companies push for diversity and inclusion.

6. Hold Your Drink in Your Left Hand (and your Purse on your Left Arm)

Frees up your right hand for handshakes without that awkward moment where the other person is waiting for you to transfer your drink (or purse) for the handshake. It also ensures your right hand isn’t cold or wet from the glass.

7.  Eye Contact (Don’t Constantly Scan the Room)

We all know about the importance of eye contact. But can you have a conversation while maintaining good eye contact without constantly scanning the room? Stay focused on the person you are talking to. It will make the person feel like the most important person in the room, which is what you should always convey, regardless of the person’s title or occupation. If you must know who else is in the room, learn to use your peripheral vision, without losing focus on the person in front of you.

8. Pay Attention and Use the Person’s Name

Use the person’s name immediately to help you remember the name and signal to the person that you were paying attention. It is also a nice touch to end the conversation by again saying the person’s name. Doing so will often make you stand out.

9.  Ask for a Challenge

As we discussed in the previous post, ask the person you meet for a challenge. Simply asking for a challenge makes you memorable because most people are only thinking about how they can benefit and not about how they can help the other person. For example, think how you can connect them to a friend in the same industry.

10. End of the Conversation- Handshake, Dap (Intricate Handshake) or Hug?

Some people like to close the conversation with a handshake or dap, others a hug. Hugs are less formal and more intimate and may convey a stronger connection with the person. While handshakes are the standard and can be impersonal, daps suggest a more friendly relationship, but could be interpreted as maintaining a “bro” culture, which could be problematic. The choice is a personal decision and depends on your own comfort level and context. However, in the context of the #MeToo movement, it may be practical to close with a simple handshake to avoid any impression of impropriety or male exclusiveness.

11. Have a Pen (or Use your Phone) and Take Notes

When appropriate, take some notes about the exchange, ideally on the back of the person’s business card (hence, the need to have a pen) or if you prefer, using your phone, e.g., email yourself some notes. Write down the person’s challenge and other personal details of the interaction. Ideally, it will be something that the person will be able to instantly recall about the conversation and you (which you will use as part of your follow-up).

12. Afterparty

If there is an afterparty after the event, try to go. These events should not be seen as a networking opportunity per se, but rather a chance to get to know the people you have already met in a more meaningful way. These settings generally allow people to spend more time with each other, and have more complex conversations and interactions. Or not. Maybe it is just an opportunity to dance or see a show. But simply being there already indicates your willingness to be part of the group (i.e., team) and have some shared interests. Plus, memories of the afterparty might be a stronger example to use as part of your follow-up.

13. Uhhh, this isn’t going so well...

There will be times where a connection with the other person does not occur. You might be in a conversation with someone who clearly has no interest in speaking with you or has a lukewarm response. Despite your numerous attempts at making a personal or professional connection with this person, nothing works. That’s ok, it happens to everyone. Don’t take it personally and have the stamina and perseverance to maintain your confidence and positive attitude.

So how do you handle a “rejection” or a less than enthusiastic response?  Similar to the art of inserting yourself into a conversation, there is also an art to extracting yourself from a conversation. Do not use another person as a reason to leave, this conveys that the other person is more important than the person you are speaking with. Instead, say “thank you, it was nice meeting you” and use an inconsequential reason to depart, such as need to refresh your drink or grab a bite to eat. The reason you give should not be memorable.

If you are attending the event with a friend or co-worker, this would be a good time to find your friend and meet the person your friend is chatting with.

Conclusion to In-Person Networking

These practical tips can be applied immediately. It will help you become a more confident and, more importantly, a better connector. Keep the concept of serendipity in mind when you are networking because you never know what opportunity may come from your connection with a person. The key is to establish a connection and obtain a challenge. The next post will discuss tips for follow-up.

Additional Resources for Networking

Give and Take: Why Helping Others Drives Our Success by Adam Grant (2013) 

Meet 100 People: A How-to Guide to the Career and Life Edge Everyone's Missing by Pat Hedley (2017) 

Never Eat Alone and Other Secrets to Success One Relationship at a Time by Keith Ferrazzi and Tahl Raz (2014) 

Show Up: Unlocking the Power of Relational Networking by David France (2017) 

Superconnector: Stop Networking and Start Building Business Relationships that Matter by Scott Gerber and Ryan Paugh (2018) 

Collecting Challenges

We collect challenges.

When we meet someone, at some point in the conversation we bring up how we collect challenges. We ask:

“What are your big challenges? These can be immediate or long term, or even your wishes and aspirations.”

What is a challenge?

• Something immediate or long-term:

  • Example: I’m looking for a way to manage and support our institution’s clinical trials using mobile technology.

    • Results: Months later, we brought Medaptive Health, an open source platform to create mobile health solutions (healthcare apps) to engage and support healthcare consumers, back to them.

• Something aspirational or potentially quite hard:

  • Example: I’m looking for my company’s first client.

    • Results: We provided actual traction and brought the startup their first deal with four major medical centers.

• Something that just drives someone nuts (process needs improvement or something needs to be more efficient):

  • Example: I’m trying to get closer to customers and improve products.

    • Results: We created an ambassador program for small business customers to share regular, real-time product feedback and reward loyal members.

• A problem they’re having right now that for whatever reason they just can’t solve it.

  • Example: Trying to hire for XYZ position, and just can’t find the right candidate.

    • Results: We understood the need and skills set required for the client and mined our network to find the right individual for the company.

  • Example: I’m double booked with pitching a client and an accelerator presentation in two different cities.

    • Results: We made the trip to present and got them accepted to an accelerator that led to multiple big company leads.

• Something that is personal in nature: Helping people isn’t only about business. While there is the idea that personal and business lives are completely separate, we all know that in reality the personal often overlaps with the business. Helping someone solve a personal issue will often result in positive effects in the business side of things.

  • Example: Client going on a business trip and has free time.

    • Results: Shared local hotspots and made introductions to meet well connected networkers.

Why do we ask about challenges?

• To stimulate meaningful and thoughtful dialogue. By asking “what are your big challenges?” it encourages the person to offer something personal and memorable and makes the entire conversation easier to recall by everyone. It also signals to the person that we are genuinely interested in helping the person besides simply making a generic connection.  

• To encourage thinking about the person’s business and personal needs. There are often more issues (i.e., distractions) than time that take away from identifying what the biggest challenges are. But by asking this question, it forces the person to immediately identify priorities. For companies, this is related to understanding what problems potential customers face and will help focus the solutions to meet real needs of customers.

• To be better connectors. We all meet lots of people who do a lot of different things. Being a better connector should not be limited to only knowing people in your specific field. You never know when a chance, random, or seemingly small meeting will eventually lead to a new lead, client, or meaningful relationship, simply because you made an effort to learn/get to know someone and his/her challenge. As Pat Hedley, who was at General Atlantic for 30 years, states in Meet 100 People: A How-to Guide to the Career and Life Edge Everyone's Missing (2017) “The way to make life happen for you is to take advantage of every opportunity. You can expand your network in places you might not expect, such as athletic events, parties, and conferences.” Successful connections are not always linear or direct, such as Point A to Point B. Sometimes the connection is non-linear and indirect. How the connection is made is irrelevant. The end goal is the connection itself.

• To create a better network effect and provide value for everyone. If we’re able to easily provide value for someone we’re doing our jobs. If we are able to leverage our network better, we’re doing our jobs and following Venture Catalyst’s frameworks using principles TEA (Trust, Efficiency, and Attitude) and ARC (Alignment, Results, and Communication). Helping someone solve a challenge through a connection tackles the E (efficiency) in TEA. Using our network to help a person is efficient because it allows us to focus on a big challenge and have a large, beneficial impact on that person’s business/life. Being part of the solution to a challenge also addresses the R (results) in ARC. We can help a person achieve tangible results by “making stuff happen.” Using our networks and experiences, we can be scrappy and resourceful to help the person solve a problem. Again, quoting Pat Hedley, “Serendipity rarely finds shy people. Serendipity smiles upon those who are unafraid to take risks and trust others. Break out of your box and put yourself in the path of good fortune.” At Venture Catalyst, we are always looking for Alignment and try to find creative paths and solutions that benefit all parties.

Challenge Accepted: Now what?

• Keeping the challenge in mind. Perhaps we won’t have an immediate connection in mind. But if we know what someone is looking for, we may meet someone in the future who is interested in the same issue, or someone who has a solution for that problem. In both cases, we can bring people together and make the connection and it’s a win for all parties.

• Tracking challenges. Keep notes of what people are looking for. The notes don’t need to be detailed, but simply a reminder of the issue. Reviewing the notes periodically helps too.

• Keeping in touch if time has passed. It’s a good excuse to reconnect. If we haven’t made a connection within a time frame, say 6 months, we reach out to that person and ask whether the challenge discussed 6 months ago is still relevant. Perhaps it still is and we have a more detailed conversation about the challenge. Or maybe the challenge has been solved and there is a new challenge to discuss. Either way, it provides an opportunity for the person to be reminded that s/he and the challenge are on our radar and for us to stay connected with that person.

Most people are extremely busy, off in their silo, and their inbox is cluttered; if we can simply follow up to let them know we were thinking about them, that’s comforting.

Challenge Accomplished!

As mentioned above, we’ve had much success helping our clients solve their challenges. In particular, we often connect members of our network to clients in need of finding the right person for a crucial position. This has often led to a variety of benefits:

• You’ll look like a genius. When we are able to make the connection to solve a person’s challenge, from our perspective it’s not a big deal it’s just part of our job. But for the person with the challenge, our connection is not a minor deal, it’s a huge deal. Not only will the person be immensely grateful, s/he will always have a positive recollection and memory of us and of how we came through.  

• Additional work. It has often led to the client asking us to find another candidate for them, which is a huge compliment - the client knows we can deliver the A (Alignment with the client’s goals - understanding the request) and R (focused on a quality Result - presenting high quality candidate) in ARC.

• Long-term relationship. In addition, helping a person accomplish a challenge by making a connection builds the T (Trust) in TEA. The person trusts us to always look out for her/him, which is the foundation needed for lasting relationships. No matter what type of relationship it is (such as client, resource, referral, etc.), the most important aspect of the relationship is the foundational trust, which cements and expands the relationship. Everything else can build off that trust.

Conclusion

Give (multiple times) before you ask. There might be a temptation for a quid pro quo, but resist. The goal about accepting a challenge isn’t about what we can gain from helping a person, but rather it is about making us better and strengthening our network. A good rule of thumb is give (multiple times) before you ask (as Gary Vee / Vaynerchuk) urged in his book Jab, Jab, Jab, Right Hook (2013). Try to assist someone at least twice before making an ask. Plus, a track record of 2/2 is great, and increases the likelihood that the person will come through should an ask be made.

Ideally, you should leave the other person with the following impression of you - desireless (giving more than taking), valuable (useful), and memorable (think of you easily and often).

(In a future blog post, we’ll connect this idea to networking and how to implement this in real life.)

HOW VENTURE CATALYST WORKS (& HOW WE HELP YOU SUCCEED)

When we started Venture Catalyst, we were only comfortable doing so because the founders had aligned values and agreed on basic principles for operating.  We proactively discussed it to ensure we’d feel great about working together.  You don’t just jump into marriage (or best friendship) on a whim without really getting to know someone.  Well, you’re about to spend just as much time with your co-founders as you do with your significant other (and certainly more than your best friend).

Trust

Would you let your business partner borrow your car, date your sister, or stay at your apartment when you’re not there?  Perhaps those go to the extreme, but do you trust them enough?

One of the most beloved professors at Stanford, Irv Grousbeck, who was an extremely successful entrepreneur taught the “newspaper test” – if whatever you or your partners/employees are doing showed up on the front page of the NY Times or Wall Street Journal, would you be proud and feel okay about it?  A fairly simple concept, but one that’s easy for everyone to understand.

Trust is built over time, and as we know can be lost in an instant. Think about the decisions you make for your company and whether they are likely to build trust amongst your co-founders, partners, employees and customers.

Efficiency
 

Get more done in less time.  Sounds simple enough but we all know it’s not.  Here are a few ways to tackle this… [Please share your other ideas (& feedback on these!) below in the comments section.]

• Focus on impactful, quality tasks.  What is hidden behind this piece of efficiency is knowing how to prioritize the important work and do it first.  Eg, Instead of tackling email first thing in the morning when you’re fresh, how about knocking out the most important item on today’s agenda?

• Delegate tasks that aren’t vital to the core 2 parts of a business – solving a customer’s problem and making $.  Eg, My first questions to founders are usually what are your main challenges and where are you spending most of your time?  It’s mindblowing how often founders concentrate on backoffice crap that won’t move the company needle.

• Empower your employees to make decisions on their own.  They should know the company’s goals and values and understand the decision making process so when you’re not around, they can act in the best interest of the company.  You can help them early on, but teaching them to fish as opposed to fishing for them will be key for long term success.  Eg, you can start by giving your employees a dollar threshold to spend to keep a good customer happy such as customer service reps can give $50 off to keep a big customer without asking for approval (thanks, Tim Ferriss, for formalizing this idea in the 4-Hour Workweek!).

• Create processes that can grow and be iterated easily. It is rare to get things right the first (or even second or third time). Making it easy to create efficiency in your processes and to easily modify them to improve them over time will go a long way.  Eg, keep a playbook for things like frequently asked questions and the best answers in an FAQ section on your website that you can update easily.

• Reuse your work products. Try to think holistically and think about institutional memory so whenever you’re working on a new project or task, try to think about how you can reuse your work and continuously improve upon it.  Eg, If you don’t have a new employee guide, with the next hire, create one and then ask her/him to help build upon it for future new hires.  

• Don’t let perfect get in the way of (very) good.  The 80/20 rule is applicable in most of business for a reason – it makes sense.  You can get 80% of the way “there” with 20% of the effort.  That last 20% to near perfection takes 80% of the time.  That’s inefficient.  So perhaps get to 85/90% there, but don’t waste time with the rest.  As Seth Godin famously said, “Soon is not as good as now.”  After you finish this blog post, just do it (thanks, Nike); what are you waiting for?

Attitude

Work is called work for a reason, I suppose, but it has such a negative connotation.  It doesn’t have to be.  It can be fun and more interesting a good portion of the time (though sometimes it really just is work!).

We have a few guidelines we live by in our work and personal lives and have worked with our clients to espouse, too.

• Be positive.  We have an optimistic view of the world.  It makes the day-to-day grind of work better and more enjoyable.  Sure, your controller or lawyer is probably not quite as positive, but that’s kind of in their job description.  Otherwise, we know we’re often going to spend 10+ hours together on any given day; why not enjoy it!?

• Try to have fun. Focus on the fun part of a task, even if that’s the feeling you’ll have of accomplishment once it is complete.  Eg, To that end, celebrate little wins.  Always keep a bottle of champagne in the fridge :)

• Take a break. It’s ok to unplug sometimes, enjoy your surroundings, or go on a trip and relax. In fact, if you fail to do this it can be work against you.

• Don’t work with jerks. No, really. There are enough challenges in this world both personally and in business, why put yourself in a situation where the people around you are the challenge. It’s just not worth it.  Challenge each other internally, but in a positive constructive way.  (Semi-related, this internal idea was partly covered by a classmate Tod Sacerdoti - who sold his startup for $640M - after which he discussed how externally in the market can be a bit different). On a related note, hire slowly, fire fast (though legally).  Create a culture where people love going to work and each others’ company.  We’ll cover this in a future post.  

What does this spell?

TEA: Trust, Efficiency, Attitude.  At Venture Catalyst, the TEA criteria is important to us. We use it to constantly evaluate our work, assess our clients, and guide us.

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How Venture Catalyst works with clients:

We maximize the odds for venture success.  How exactly do we go about doing that? We ensure that all our projects and the work we do with clients is guided by three things.

Alignment
 

If there’s one word we say most, it’s probably alignment.  We ensure we are internally aligned and we want to be aligned with our clients from start to finish.  

If we need to, we play devil’s advocate and take alternative approaches/views in order to avoid group think; but at the end of the day we want to be ‘on the same page’ and ‘in the same boat.’

If our clients do well, we do well; and visa versa.  All of our projects and client work is structured this way (and there are concrete ways to do this).  Often, we find that this is an area where our clients are the most relieved and encouraged by our approach (it helps to build trust as discussed above!)

Results
 

We cringe when we hear a lot of talk about projections. What are the results achieved up to this point?  What are you achieving right now?

We’re ambivalent when we hear talk about all the hours put into something; sure it’s semi important. What matters more than time in a seat/office (or the dreaded “face-time”), is what you accomplish.  

We are all about results.

• GSD (Get “Stuff” Done).  Commit to doing something, and do it. It doesn’t have to be perfect (80/20 discussed above), but it needs to be done. We love working with ‘doers.’

• MSH (Make “Stuff” Happen).  Create a path when there wasn’t one before. Find a workaround to get to the endpoint you need to get to.  Be scrappy, be resourceful.  We think there are solutions to virtually all the problems we see clients face (btw, those solutions are often borne from either creativity or perhaps money).

• Quality over quantity.  A few quality wins and accomplishments demonstrate real capabilities and that ‘point of excellence’ that you can show customers and investors to convince them you are the real deal.  Too many small and low quality things don’t really add up into the best stories.  It also tends to suck all your time and put you on the wrong trajectory.

We apply the results mantra to our work. We base our contracts around results and what we jointly achieve with our clients. It keeps us aligned, builds trust, and creates efficiency.  It’s really important.

Communication
 

Keeping open lines of communication is key.  We like to have:

• Regular updates. Keeping on top of who needs to know what, and making sure they are up to speed on a regular basis is critical to working in teams, and working with clients.

  • Set phone calls to keep people informed and accountable. It helps people plan better, and contributes to building trust. There are times when they are short and sweet too, which could be on account of everything going as planned.

  • In person meetings when possible. This is important when starting or completing a project or deliverable, or when multiple people really could tackle something quickly and more efficiently in person.

  • Email updates to various constituents is key.  Savvy investors know that when a CEO goes dark for longer than expected, it usually portends bad news.  CEOs should send a regular email update to employees, investors, partners, and clients.  Each one can differ in terms of the content, but opening the kimono can be extremely helpful to engage people, stay top of mind, keep focused, engender goodwill, and encourage creativity and helpful introductions.

• Goal check-ins (every 6 months or so) to discuss professional and personal goals and ensure we are still aligned. These are more strategic conversations and focus on the big picture, allowing the time and space to take a step back.

• Open door policy.  It’s important to create a culture where anyone can bring up issues or things that are of concern, or random ideas (you can also set aside time during the regular check-ins to do this).

• Online materials to keep updated docs.  That way everyone knows where something is and can act quickly in case a project owner is out sick or traveling.  Use technology to create efficiency rather than a burden.

What does this spell?

ARC: Alignment, Results, Communication. At Venture Catalyst, ARC is how we operationalize our work to provide real and measurable value for our clients to help them grow and succeed.

Conclusion:

Be it TEA or ARC, however you lead your company, put it down on “paper” and ensure you and your employees actually live by it to maximize your odds of venture success.

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Why Venture Catalyst?

Welcome to the Venture Catalyst blog! 

Thanks for reading.  We hope to share clear & useful insights (from us, our partners, and perhaps even clients!) that will help you & others improve the odds of venture success.  Please let us know how we’re doing and how we can improve or add more value to you, our readers.

Much like any startup, we see a need, align with the right people at an opportune time, and start working.

Ok, let's have some fun with more details of what that need is, how we align, why it’s the right time etc.

BIG NEED

Eric:

“Check out the problem, yo I'll solve it.”  (Vanilla Ice)

I had an issue...  In college, I started out premed at Brown University and always wanted to help people with their health but stopped being premed as I didn’t love a number of things I saw when working in hospitals in NYC & Dallas.  Instead, I went to work in the business world (CBS, Goldman, Amex, eBay, and a number of startups before and after business school at Stanford),

However, I still wanted to do something meaningful in the healthcare world.  In 2009, I joined a nonprofit called BensFriends.org that helps 100k rare disease patients per month. I’d invested in a number of companies as an angel, including healthcare related ones (such as Kinsa, the world’s smartest thermometer that’s backed by Kleiner Perkins) but the fund I work with - Indicator Ventures - specifically doesn’t invest in regulated industries like healthcare. I was seeing an increasing number of deals, and a growing number in healthcare. Aside from a few investor friends in the space, I needed an outlet for them.

In Spring 2016, I’d just finished up a great project... I found a cool company, Bond, that our VC fund invested in and led the A round after which I ran partnerships and soon thereafter we sold it (for very positive IRR) - all within 15 months. After this project, I began thinking about my next step and about the healthcare deals I see. I’d heard from a number of friends in healthcare that it’s hard to get things done with all the compliance, restrictions, and regulations that exist.

After a lot more conversations with people in healthcare, I confirmed what our fund knows - it’s hard to get things done with all the compliance and regulations.  Friends have left general tech to break into healthcare and bring creative ideas that work in Silicon Valley. There is some success doing things differently, but more often they left exasperated.  There must be a better way and there’s still a huge need.

RIGHT TIMING & RIGHT PEOPLE

“Right Here, Right Now” (Fatboy Slim)

At the exact time I was thinking about what to do next and having conversations with friends and others in healthcare, I met Jeremy.  Luck is sometimes described as when opportunity meets preparation ('chance favors the prepared'). I got lucky; thinking about healthcare at the time and meeting the right person.

One feature important in identifying the right people is trust. Trust is vital. Jeremy and I met through his best friend in NYC, who is my oldest friend (we’ve known one another since preschool!). Like dating, it's usually better to go through friends. We both were able to start building trust because the connection came through a trusted source.

A second, and equally important component is being aligned on principles & values... People do not always agree, and we definitely don't, but we outlined and agreed upon common principles and values that we use to aid in making decisions and working together.

Jeremy:

One of those core values is a desire to constantly improve. Ourselves, the work we do, and the outcomes and value we add for those we work with.  In order to do the kind of work we do at Venture Catalyst, we need to be an interdisciplinary team. Without it, the complex problems new ventures, founders, and investors face simply cannot be solved.

All of my career I’ve spent creating, managing, and being a contributor to interdisciplinary teams tackling thorny and complicated problems in a variety of sectors (though with a larger number in health/biomedicine/technology). In college, graduate school, working in government, academic medical centers, with investors, and startups; I’ve developed a broad understanding in a bunch of areas, and a deep understanding in a few. My expertise is at the intersection of research, science & technology, policy, and regulations.  

For me, it starts with curiosity inspired by seeing something that either I want to understand, or I want to change. When I started graduate school at Duke for biochemistry, I was (and still am...) concerned that decision-makers were not able to make the highest quality choices with the aid of scientific or technical information. It’s what inspired me to get a masters in public policy in addition to my PhD work. It’s also what landed me on the Institutional Review Board at Duke Health at the age of 23 (ethics board that reviews research conducted on human beings, like much of the medical research).

I am still on this interdisciplinary path. From 2006-2009 I brought together a team of scientists, engineers, virtual reality programmers, and visual artists to create KinImmerse – virtual reality software to display and interact with macromolecular models in a 6-sided virtual reality facility. Working and learning together across disciplines on that project got me hooked!

At the same time, I did a stint in the Office of Management and Budget in Washington DC for the Bush Administration working on revising how the US Army Corps of Engineers plans, evaluates, and selects water projects for the United States, then another stint helping the Transition Team for the Obama Administration and crafting the Human Embryonic Stem Cell Research Policy and updating the US governments bioethics commission. In 2012 I took on a role for the City of New York in their procurement shop, and with wide consultation wrote their emergency procurement policy and green procurement policy in the wake of Hurricane Sandy. A year later, I joined Mount Sinai as an Assistant Professor in Population Health and became the youngest IRB chair in the country at a top 15 academic medical center.

While at Mount Sinai, I contributed to the development of the Apple ResearchKit platform with colleagues and co-designed the first eConsent platform on a mobile device (and I’m advising developers using ResearchStack for Android on the same thing!).

Since stepping away from Mount Sinai to work on Venture Catalyst, I’ve also been working with colleagues at Memorial Sloan Kettering, UPenn, Dana Farber Cancer Center / Beth Israel Deaconess, and Cedars Sinai to develop technology for population level genetic screening for cancer.

Every step of the way, I’ve seen an interdisciplinary and learning focused approach lead to great results for the teams I’ve led or been a contributor to. I’ve also learned a lot of technical and regulatory skills and become an expert in a few areas.  What’s great about teaming up with Eric is that we complement each other in terms of skill and the two of us together cover a lot of ground for those we work with.

 Why’d we start Venture Catalyst?  

Eric & Jeremy:

In one word, ALIGNMENT.  It’s what we seek in everything we do - with our team, partners, clients, and even friends & family. We quickly realized trust existed, and alignment existed. 

Also, there is no time like the present; be it the stars, our values (which we’ll talk about in a future post), or something else, it is simply the right time.

Finally, a commitment to action. Neither one of us is a particularly passive person and once we saw the opportunity we agreed to a course of action and followed through.

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