Today’s guest post from Chris Moody, the COO of Gnip, follows on the heels of the amazing Big Boulder event that Gnip put on last Thursday and Friday. To get a feel for some of the speakers, take a look at the following blog posts summarizing talks from leaders of Tumblr, Disqus, Facebook, Klout, LinkedIn, StockTwits, GetGlue, Get Satisfaction, and Twitter.
The event was fantastic, but Chris sent out a powerful email to everyone at Gnip on Saturday that basically said “awesome job on Big Boulder – our work is just beginning.” For a more detailed version, and some thoughts on why The Work Begins When The Milestone Ends, I now hand off the keyboard to Chris.
We’ve just finished up Big Boulder, the first ever conference dedicated to social data. By all accounts, the attendees and the presenters had a great experience. The Gnip team is flying high from all the exciting conversations and the positive feedback. After countless hours of planning, hard work, and sleepless nights, it is very tempting to kick back and relax. There is a strong natural pull to get back into a normal workflow. But, we can’t relax and we won’t. Here’s why.
As a company it is important to recognize the difference between a milestone and a meaningful business result. Although it took us almost nine months to plan the event, Big Boulder is really just a milestone. In this particular case, it is actually an early milestone. The real results will likely begin months from now. All too often startups confuse milestones for results. This mistake can be deadly.
Milestones Are Not Results
Milestones represent progress towards a business result. Examples of milestones that are commonly mistaken for results include:
Getting Funded. Having someone make an early investment in your company is positive affirmation that at least one person (and perhaps many) believe in what you are trying to accomplish. But, the results will come based upon how effectively you spend the money; build your team/product, etc. Chris Sacca has tweeted a few times that he doesn’t understand why startups ever announce funding. Although I haven’t heard him explain his tweets, I assume he is making the point that funding isn’t a meaningful business result so it doesn’t make sense to announce the news to the world.
Signing a partnership. Getting a strategic partnership deal signed can take lots of hard work and months/years to accomplish. Once a partnership deal is finally signed, a big announcement usually follows. The team may celebrate because all the hard work has finally paid off. But, the obvious mistake is thinking the hard work has paid off. Getting the deal signed is a major milestone, but the results will likely be based upon the amount of effort your team puts in to the partnership after the deal is signed. I’ve never experienced a successful partnership that just worked after the deal was signed. Partnerships typically take a tremendous amount of ongoing work in order to get meaningful results.
Releasing a new feature. Your team has worked many late nights getting a new killer feature in to the product. You finally get the release out the door and a nice article runs in TechCrunch the next day. The resulting coverage leads to your highest site traffic in a year. But, have you really accomplished any business results yet? Often the results will come after lots of customer education, usage analysis, or feature iterations. If no customers use the new feature, have you really accomplished anything?
Is it okay to celebrate milestones? Absolutely! Blow off steam for a half-day or a long celebratory night. Take the time to recognize the team’s efforts and to thank them for their hard work. But, also use that moment to remind everyone that the true benefits will happen based upon what you do next.
Results Increase Value
Unlike milestones, results have a direct impact on the value of the company. Results also vary dramatically based upon different business models. Examples of common results include: increasing monthly recurring revenue, decreasing customer turnover, lowering cost of goods sold (increasing gross margin).
Announcing a new feature is a milestone because it adds no value to the company. On the other hand, having customers actually adopt a new feature might increase customer retention, which could be a meaningful business result.
The Work Begins When X Ends
When I worked at Aquent, there was a point in time when we were doing lots of tradeshows. We noticed a pattern of team members taking months to prepare for an event and then returning from the tradeshow declaring the event a success. They would put a stack of business cards on their desk and spend the next several weeks digging out from the backlog of normal work stuff. The business cards would begin to collect dust and the hot leads from the show would eventually become too cold to be useful.
In order to avoid this phenomenon, someone coined the expression “the work begins when the tradeshow ends”. This simple statement had a big impact on the way that I think about milestones versus results. Since that time, I’ve used the concept of this phrase hundreds of times to remind my team and myself that a particular milestone isn’t a result. You can substitute the word “tradeshow” for whatever milestone your team has recently achieved to help maintain focus.
The most recent example? The work begins when Big Boulder ends.
There is this magical moment that happens when a startup finally puts the key components together to build a successful business. After months or years of iterating and pivoting, they finally have the right product for the right market at the right price. At this point, the company has to shift gears and change their mindset a little. They need to stop looking for gold and start mining as fast as possible. My friend Chris Moody, President/COO at Gnip, refers to this as the execution phase of a business and there is no better example of execution in our current portfolio than the team at Gnip.
After 2.5 years of product development and varying business approaches, Gnip found their magic moment about a year and half ago. Since that time they have been heads down executing and the results have been incredible.
Today Gnip announced an exclusive partnership with Tumblr. This monumental partnership will give Gnip’s customers full coverage of an amazing source of social data that has never been available. With 50 million new posts per day and 15 billion page views per month, Tumblr offers a huge new data stream for companies to analyze and use to drive business decisions. The fact that businesses will be able to receive this data via the same reliable and scalable Gnip infrastructure that currently delivers Twitter and other important data sources is a major win for the ever growing social data economy.
The Tumblr partnership is the kind of announcement that companies plan their entire year around. However, in Gnip’s case, it is just the latest activity in an impressive series of events that shows the Gnip team knows how to get shit done. It is only April and Gnip has already done the following in 2012:
Okay, so the Gnip team is getting stuff done, but at what price? They must be cracking the whip pretty hard and creating a real sweat shop, right? Wrong. In spite of growing their number of employees by 300% in 2011, Gnip was just named The Best Place To Work in Boulder. Not the best startup, the best company. And, the best news of all? They are hiring!
In December I wrote a post titled It’s Not About Having The Most Friends, It’s About Having The Best Friends. Since then I’ve been systematically modifying my social networking behavior and cleaning up my various social graphs. As a significant content generator in a variety of forms (blogs, books, tweets, videos) and a massive content consumer, I found that my historical approach of social network promiscuity wasn’t working well for me in terms of surfacing information.
I made two major changes to the way I use various social networks. I went through each one and categorized each on three dimensions: (1) consumption vs. broadcast and (2) public vs. private, (3) selective vs. promiscuous. These are not binary choices – I can be both a content consumer and a broadcaster on the same social network, but I’ll use it differently depending where on the spectrum I am.
For example, consider Facebook. I determined I was in the middle of the consumption/broadcast spectrum, public, and selective. With Foursquare, I determined I was closer to broadcast and private and very selective. With LinkedIn, I was 100% broadcast, public, and promiscuous. With Twitter, I was similar to Facebook, but with a much wider broadcast and promiscuous. With RunKeeper, very strong on broadcast, public, but selective.
I then looked at the tools I was using. Yesterday I noticed Fred Wilson’s email The Black Hole Of Email and it reminded me that I view email as my primary communication channel for broad accessibility (I try to answer every email I get within 24 hours – if it takes longer you know I’m on the road or got behind) and often respond within minutes if I’m in front of my computer. But I’ve worked very hard to cut all of the noise out of my email channel – I have no email subscriptions (thanks OtherInBox), I get no spam (thanks Postini), I run zero inbox (read and reply / archive immediately), and am very selective with the notifications I get via email (i.e. I check Meetup.com daily, but the only email notifications I get are for Boulder Is For Robots.) As a result, I find email manageable and a powerful / simple comm channel for me.
Tuning each social network has ranged from trivial (15 minutes with RunKeeper and I was in a happy place) to medium (Foursquare took an hour to clean up my 800+ friends to 100-ish) to extremely painful (going from 3000 Facebook friends to a useful set seemed overwhelming.) I decided to clean up the easy ones first and then come up with manual algorithms for the harder ones.
My favorite approach is what I’m doing with Facebook. Every day I go into the Events tab and look at the birthday list. I then unfriend the people whose name I don’t recognize or who I don’t want to consume in my news feed. Since Facebook’s social graph is on the public side, people can still follow me (ala Twitter follow). I view this as a reverse birthday gift which probably enhances both of our lives.
In contrast, I’ve continued to just accept all LinkedIn requests except from obvious recruiters or people who look like spambots. I know they can pay to get access to my social graph – that’s fine – I want them to have to pay someone or work a little for it, not just get it for free, but the benefit of having a wide social graph on LinkedIn for the one time a week I use it to hunt someone down somewhere far outweighs the pain of being promiscuous.
I’ve continued to find and use other tools for managing all the data. One of my new favorites is Engag.io. Rather than getting a stream of Facebook email notifications, I check it once a day and respond to everything that I see. I’ve noticed that I find comments in other services like Foursquare that I was previously missing, and rather than having a pile of clutter in my inbox, I can interact it with once a day for ten minutes.
When I reflect on my approach, it doesn’t surprise me that it’s very algorithmic. That’s how I’ve always driven my content consumption / content generation world and part of the reason it doesn’t overwhelm me. Sure – it spikes up at times and becomes less useful / more chaotic (like it did last year when I realized Facebook wasn’t really useful for me anyone.) This causes me to step back, figure out a new set of algorithms, and get it newly tamed. And yes, Facebook is now much more useful and interesting to me after only a few months of cleanup.
I’m always looking for new tools and approaches to this so if you have a great one, please tell me. For example, the “unfriend on birthdays” approach was suggested several times in the comments to one of the posts and after trying a Greasemonkey plugin, manual unfriending on the iPad while watching TV, and other brute force approaches, I just decided I’d clean it up over a year via the birthday approach. So – keep the comments and emails flowing – they mean a lot to me.