Interviews

Each week, this blog will feature a new interview with a leader in today's best and fastest methods for entrepreneurship and innovative living. The experiences and best practices I have gained from speaking with such figures as Guy Kawasaki and Johnny Lee have made an enormous difference in my life. My goal is that by posting these conversations, you too can grow and take action towards your lifestyle. Some specific interests I have are the art of:

  • Speed Innovation
  • Speed Marketing
  • Speed Monetization

These videos are a part of a wider effort to bring today's best practices to the world of innovative research. I have taken this on as my personal mission because I believe in the power of innovation and its role in the changing world. I see the potential of energy efficiency, bio-engineering and nano-technology to play an enormous role in the creation of both market and world solutions.

Interview: Nobel Laureate, Alan Heeger

Calculating Risk: Nobel Laureate Alan Heeger on Innovation and Getting it Right

“One does not stop learning when you finish your PhD, you’re only beginning.”

2000 was a pretty good year for Professor Alan Heeger. He was awarded the Nobel Prize in Chemistry for his efforts in the discovery and development of conductive polymers and his first business venture, UNIAX was acquired by DuPont.

Nearly a decade later, he has yet to lose his nerve to innovate. Despite his remarkable success in both the academic and entrepreneurial sphere, he is still on the frontline of discovery and research, here at UC Santa Barbara.

He talks about the inherent risks innovation and starting your own business, the importance of being bold and the difficulty in getting it right.

On Exploring the Great Unknown

In the end, that’s part of the thrill of sciences. Living with that risk and dealing with it. I was fortunate because I lived with that kind of risk for 24 years and created a whole new field of science: semiconducting and metallic polymers. I’ve enjoyed that and having been wonderfully honored for those accomplishments.

On Risky Endeavors

I saw play a year or two ago called “Master class” about the great soprano Maria Callas. She was past her prime in this play, and teaching a master class. One of the young women in the class asked her why did she quit. Did she lose her voice? And she said. “I never lost my voice, I lost my nerve.” I’ve never forgotten this line because it’s really important that you do not lose your nerve. You’ve got to go forward and be willing to take risks.

On the Nobel Prize

In 1982, 27 years ago, and I’ve never looked back. It has been wonderful here and I’m still, of course, doing science full-time. I started out as a physicist. Then I became a chemist. In 2000 they awarded me the Nobel Prize in chemistry, and now I think of myself as a scientist.

On Business

It wasn’t that I decided I wanted to do something new, but I saw an opportunity that was associated with my research. I wanted to carry that over and try to make it into something that would be useful for technology, and useful for people.

On Collaboration

So making that clear, making those connections…. rarely can a startup company do this by itself. There are, of course, successful examples like Google, etc. But typically, one needs partners, money and financial help through individuals, a venture capitalist group, or strategic partners, but you also need to get them involved in the technology, and basically sell it as a concept.

On UC Santa Barbara

That happened in the case of UC Santa Barbara. Really, on a very short time scale, to go from what was euphemistically called use the “sunny beach” to a really world-class institution that we now enjoy has been fantastic.

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Pretty Woman Executive Producer Reveals the Hollywood Movie Alchemy

Movie Producer Reveal Hollywood Movie Alchemy

Movie Producer Reveal Hollywood Movie Alchemy

Read this if you are interested in how to have people pay attention to your story.

One afternoon amongst 500 other people, I spotted an older more distinguished gentleman.  You know the kind of person who you can spot amongst 1000 people.  I introduced myself and turned out he is the executive producer of Pretty Woman, one of the most memorable film in my youth.

What do you think I did?  Given that I am a student of successful people, I seized the opportunity and had a brief interview with Gary.




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Here is the synopsis of the interview:

How many times have you been asked “What do you do?” at any kind of social gathering.

How many times have you answered the question and the other person then moved on to the next person?  Leaving you feeling unimportant. Snubbed.  Even a little hurt.

By answering the question directly, we put a ‘label’ on ourselves.  And based on the the listener’s perception you are either boring or interesting.

Sure you can say: how rude!  But the fact is that we have so many people to meet and so much information coming our way.  There is no way for us to care about everything and everyone at everywhere.  We have evolved to have phenomenal multitasking ability as well as filtering ability.

You are either boring or interesting.  Bang.  Done.

When Gary Goldstein asked me what is it that I do, my answer was ‘blogger’ and I am interested in interviewing him.

If he wasn’t curious and had a blogger interviewed him already.  That would have leave no room for more development.  That would have been the end of conversation.

Gary asks me to consider answering the question with a question.  “What if thousands of people get to listen in on this conversation?”

By demonstrating value in the form of a question, that would have been intriguing to you, wouldn’t it?  From that intrigue, we can then develop a relationship.

If you think this only applies to conference networking events, think again.

Recall how you or someone you know intimately, how do you initiate conversations in the dating scene?

Inevitably they start out with the question “what do you do?” and launch into a monologue of how great their latest project may be.

All features and no benefit.

Yawn. Boring.

You start to look around for more interesting targets.

As the talker, you want to have something that demands an unusual response.  But I digress.

Here are some of the other points he touches on:

  • He shares how he is changing the business model of Hollywood by inverting the model of production and distribution.
  • He shares what’s possible beyond the realm of Hollywood
  • He shares how you can develop the ability to overcome hardtimes in Hollywood
  • How to get the inroad of Hollywood
    • Inner game: persistence, commitment
    • Outer game: dream100 and the strategy to reach anyone you want

If you ever get an opportunity to see him speak, see him.  His insight and analogy will change how you operate in business relationships.

Even if you don’t listen to the entire interview, here is one thing you can do right now to get results:

Write down your list of dream contacts that will take you to the top.  All 100 of them.  Reach out to their gatekeepers for advice.  Be persistent.  Result will come.

“Opportunity never knocks, it sits quietly on the roadside and waits to be found.”

Are you waiting for opportunity to knock?  Or are you going to find it?

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The AlloSphere Research Facility at UC Santa Barbara: “We represent data”

allosphere

The AlloSphere Research Facility at UC Santa Barbara: “We represent data”

Just the other day, I had the pleasure of speaking with Professor JoAnn Kuchera-Morin, the director of the AlloSphere research facility at UC Santa Barbara.

How did the concept come about? Why is it different from other virtual reality environments?

Professor Kuchera-Morin discusses how 40 million dollars worth of research partnerships was raised, leading to the construction of the AlloSphere building.

The idea was to bring visual artists and engineers together through collaboration.

Professor Kuchera-Morin discussed the importance of:

  • The benefits that come from a mutual partnership between scientists and artists.
  • The importance of “approaching and taming the beast [computer]” when it comes to mapping abstract data, not being afraid to join forces with computer scientists and material engineers.
  • Bringing entertainment, visual arts, computer science, and engineering together: “we represent data.”

The AlloSphere is the culmination of different laboratories, bringing all divisions together in one location.

Why?

Professor Kuchera-Morin simply states, “to make incredible science and do it right.”

The ultimate goal is to maintain data and experimental credibility, because the proper environment has been set up for all different fields of creativity.

Whether your expertise is music, nano science, or material engineering, all information is located in the same place for everyone to access.

This is why the AlloSphere is different than other virtual reality environments like the Planetarium, because massive amounts of scientific data have been brought under one roof that then becomes accessible to all who seek to compute their data, no matter what form it’s in.

The AlloSphere space consists of a 3-story cube that is “treated with extensive sound absorption material, making it one of the largest anechoic chambers in the world,” this is unlike anything ever done in a Planetarium.

Besides the impressive audio capabilites, the AlloSphere also delivers high-resolution 3D video streams.

When all three schools of thought join together, what can be achieved through this sort of cooperation is boundless.

The AlloSphere and Professor Kuchera-Morin’s innovative advances should not only be admired, but also emulated because bringing people together is how we continually expand our research and designs.

The dedication, effort, and patience put into the AlloSphere final product is nothing short of genius.

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Entrepreneur Profile: Alison Perry of Inogen, “How to Raise 55 Million at Age 25″

Ali Perry, Founder of Inogen

Picture Courtesy of Inogen, Inc. Inogen Founders: Brenton Taylor, Alison Perry, Byron Myers
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YOUTH MOVEMENT: How 3 College Students Took on the Medical Device Industry

Inogen founder, Ally Perry:

“Listen to as many people as you can, talk to people, get resources, but then internalize that and decide what’s right for your business.”

Motivated by her grandmother’s personal struggles with out-dated oxygen transport and conversion devices, Ally and two of her college buddies started Inogen, an innovation based company that since has transformed an entire branch of the health service industry. In 2005, Ally Perry and Inogen were recognized with The Ernst & Young Entrepreneur of the Year award and to date they raised nearly $55 million in venture capital.

Typical success stories only highlight, the high points, what works. So Ally wants to tell you what doesn’t. She shares her struggles with the entrepreneurial process, as well as, some advice for innovators who want to see their ideas materialize.

Website: www.Inogen.net/

Transcript

Interview between Ally Perry and CK Lin
Transcribed by Quinn Duffy

CK: We are really excited to have one of our local celebrity to be here with us. She’s the founder of Inogen, she’s also entrepreneur of the year with Ernst and Young.

Ally Perry: Sure, sure. I’m Ally Perry, I am one of the founders of Inogen and we have two other founders as well. I’m a graduate of UCSB, I graduated with a degree in Economics Mathematics with a minor in Statistics and I graduated in 2003 and have been running Inogen along with the rest of the management team since 2001.

CK: So how does it feel to be entrepreneur, be recognized as the entrepreneur of the year?

AP: It was cool. It was a nice experience to be recognized as a, being a leader in entrepreneurship through Ernst and Young. They had a huge event where we had all gotten to go there and mingle with other entrepreneurs so it was a great experience to see [???] entrepreneurship.

CK: Is it limited to California only or is it nationwide

AP: Our was for the LA area and then they also have a national one as well, as well as world wide Entrepreneur of the Year.

CK: But now that you’re part of the community right, it makes those things a lot easier. Ummm so for those people who don’t know you know, what Inogen does can you just thirty seconds let us know what Inogen does and the story of it.

AP: Sure, sure. So Inogen was founded in 2001 by three students. Myself, and two other students at UC Santa Barbara and the whole idea of Inogen came about when my grandmother got sick and she got put on oxygen and when that happened the quality of her life just completely changed. She was having to deal with regular deliveries of oxygen and always worrying about whether she would run out of oxygen or not. So, in the home they have a stationary fifty pound oxygen concentrator and then when she leaves the home she has these little tanks and they have compressed oxygen in them. So she lived just about forty five minutes from here and she would come for lunch or shopping or something and she would always be worried that, what if I don’t have enough oxygen to get home, what if there’s traffic, can we have dessert? Those types of questions now were daily questions in her life and over winter break I was home with my family and she was there and she actually came up with the idea. She said, “Everything else in the world has gotten smaller, lighter, and better. Why hasn’t my oxygen concentrator had any improvement?” So I took that back to two of my friends here and said, “I wonder if there is something better.” We started throwing around ideas of what it could be, did a lot of research on the Internet and found out there wasn’t anything better. And Brenton who is the more technical person looked at it and said, “You know, this technology is thirty years old, I’m pretty sure we can make this better.” And that’s kind of the idea. So we started with her just really being frustrated with the current technology and taking that and turning it into a solution that would solve that problem and that was the formation of Inogen.

CK: Wow. So your grandma gets an honorary seat in the company I hope.

AP: [laughs] Well she’s no longer with us but she did get the first Inogen One that we had produced.

CK: Cool. Ummm so from our community a lot of times what we hear is only the successful stories right?

AP: Right.

CK: You know, Inogens done this, raised this much money, got this many customers, Entrepreneur of the Year, right? All these great things. So from your journey what are the, can you tell us some of the challenges that you actually encountered and what did you learn.

AP: We had quite a few challenges as we were going through the process and that actually was one of the hardest things when we started out, when we looked at other companies as entrepreneurial successes, all we heard about were the high points where you go, “OK everythings getting better, this company is on the success track.” and you hear about all of those great things that are happening and what we were experiencing instead was a roller coaster where you know, we would have a high and then a low, then a high, then a low and the general progress was in the right direction but we didn’t understand at that time why we were having such huge swings in, in, in the business and I think that now looking back, most entrepreneurial ventures have those swings and we just didn’t know that other entrepreneurs were experiencing that as well. So I think it is important to talk about those valleys. Umm When we started we were three students that didn’t have any real experience of how to make a medical device and we, quite frankly, didn’t think we could do it. We at first thought about it, we entered the business plan competition and won that and really didn’t think we were going to do with it because what does a nineteen year old know about starting a medical device, especially a manufacturing based company. So we first got some people involved that knew, but right off the bat, right after we decided we were going to pursue the company, September 11th happened. We had already gotten a commitment from an Angel investor that he was going to give us a little bit of money, well right after that, that completely went out the window for another nine months. So we started with the highs were going to get money, then were not going to get money and you know, now were delaying it. We also had an initial problem that we said, “First we’re just going to make oxygen.” The straight, normal process that everybody uses that’s been around for fifty years and for, we thought that would take two days. After three weeks or so we still couldn’t make oxygen. At one point we were actually making nitrogen and we said, “Oh my god. We have no idea what we’re doing. [laughs] We can’t even do this.” And you know, eventually we figured out what happened and got right back on track but we had a lot of challenges getting that initial product together. We very clearly understood what the product needed to be; that part for us was easy. We had my grandmother there. We knew specifically what she needed out of our product, but we were asking a lot. So we had to bring in experts from the chemical process of how you actually separate oxygen from air on battery technology, on compressor technology, on a lot of different areas and kind of bring it all together which ended up costing about three times as much and taking about three times as long.

CK: Now when you say cost is the design cost or is it cost of the unit itself?

AP: Design cost.

CK: Design cost, ok. So you didn’t, it wasn’t like you were able to approach a professor and say, “Hey professor so and so, I was a student help us out pro-bono.” kind of a thing?

AP: Yeah, we didn’t really use the engineering staff here. We had some meetings where we worked through them. Actually we used a design firm in town to do the design work, but he actually is also a professor here at school [CK: I see.], it was just his side venture that, that we used. But we kind of leveraged that relationship to get in with the design firm and get that work done. And we actually ended up using multiple design firms for specific components.

CK: Hmmm, interesting, ok. Umm any other challenges?

AP: We had a big challenge bringing our device from design to manufacturing. And I think a lot of entrepreneurs, especially technology entrepreneurs they focus on getting the design and the prototype. And we had a beautiful prototype that looked like it was going to work great. What we found out was when we actually took it to manufacturing that the skill level required to put this thing together was fine for an engineer doing ones and twos of making a prototype, but in mass volume it just didn’t work, and it wasn’t as reliable as we needed it to be. So we actually, we were using a contract manufacturer. We have huge, huge reliability problems with our initial configuration so were putting units out there that are failing, we’re having a lot of problems with that. At the same time our contract manufacturer got acquired by a larger company. So now have an entire change in management there that really you know, also is affecting our product. And so we’re trying to work through those reliability issues and trying to get to the heart of the design problem, is this a process problem. Quite frankly we didn’t spend enough time before we took it to manufacturing testing it in a manufacturing environment and I think a lot of people make that mistake of rushing. Alright we have a prototype, let’s get it out there, let’s get it in our customers’ hands and we, we struggled in that period.

[10:00m]

And then our contract manufacturer actually filed for bankruptcy. [CK: Nice.] Which just made a bad situation so much worse. [CK: Right.] Umm and after that we actually ended up bringing manufacturing in house and we were actually manufacturing here in Goleta. [CK: Really?] We felt that at the point in time it was important for us to make sure we could manufacture our product, that we had the quality because we cared the most about the quality and its a medical device and we just felt that that was an important strategic reason for us to bring manufacturing here to Goleta.

CK: You know actually I have a question for you. So you know, I love innovation, I am actually obsessed about the innovation process [AP laughs] to be quite geeky about. Umm the CEO of Google, Eric Schmidt said that their model, you know, Ready, Shoot, and Aim just to throw it out there for the customer to test it out and to give them feedback so they can do it iteratively. It works for them. Obviously it wouldn’t work really for the medical devices type of things.

AP: I think that’s a great strategy for software and that type of thing, medical devices its less, its not as optimal. We ended up having to do a recall [CK: Recall.] of our product. And now we have the best quality in the field. We decided to make that a focus of the company, that we would make high quality products and now our reliability, no one else in our space can touch our reliability for comparable products.

CK: That’s great. I think we’re going to quote you on that. [???]

AP laughing: OK.

CK: Umm so these are the typical you know, first time entrepreneur mistakes and actually you are in a very old industry. [AP: Right] Medical devices, fifty to seventy years. [AP: Yeah.] So hows, what is the reaction from your competitors. You know these youngsters come into the space, you know what is the reaction from that? Whats the feedback?

AP: The initial reaction was surprise. There really wasn’t any innovation in the industry in awhile and they were pretty complacent. They only made new technology and put in new technology when absolutely required. So we showed up at our first tradeshow when we had a prototype done and this was a year before we actually ended up launching the product. But we showed up and no one had heard of us before, and when we got there and set up and everybody saw the product that we had and heard that we were some venture backed company from California, our competitors all came to the booth like, “Whoah! [laughs] Who are you guys, whats going on, I want to learn about the product and see what you guys have.” So they were very surprised to see somebody entering the field that had such a different perspective on the field than they did. Our competitors at that time, when we had actually set up, to start the company I had called our competitors and I think its a great strategy for people who are looking at starting a company. I called them up as my grandmother, for my grandmother and said, “My grandmothers on oxygen. She doesn’t like her oxygen concentrator. Do you have an option, like a small portable oxygen concentrator that would work for her?” And the reaction I got was, “That’s impossible, it’s physically impossible to make a portable oxygen concentrator.” And at first we said, “Uh-oh. We may have an engineering problem, if this is physically impossible.” And as we dove into it more, they all said, “Yes we agree. If there could be a portable oxygen concentrator that would be the holy grail of the industry. But we don’t think it would be possible.” And what we later realized is the reason they thought that it wasn’t possible was because they were thinking within the scope of the current oxygen concentrator business and that’s a commodity business. Where people, they want to buy the cheapest oxygen concentrator they could find and because of that what happens is they buy the cheapest components that they can and they sell it for very small margins. So they were thinking in terms of, for a three hundred dollar cost of goods I agree it is completely impossible at this point in time to make a portable oxygen concentrator within those specifications. But what we realized was, with our product you take away an entire delivery structure for the tanks and because of that cost savings on the servicing side of the equipment you can charge more for your product and lower cost for them.

[15:00m]

So that’s what was critical for us is finding that key market input where we said, “Yes it’s possible at a different price point and the reason people will pay that price point is because of the other value that we’re providing.” Because it’s like a milkman [CK: Yeah.] You don’t get your milk from a milkman anymore. You don’t have somebody come into your house once a week delivering milk because you go to the grocery store and you get it there and its a much more efficient structure. Well for us that’s what tanks are for patients. They’re in the house once a week, once every other week, delivering these cylinders of compressed oxygen. Everyone of those trucks, every time they go its fifty dollars. For us, we could charge three to four times as much to the provider and save them money over the long run as long they invest in the capital upfront.

CK: Very interesting yeah. I’m sure its music to the investors ears, like wow.

AP: And really, when we brought investors in, the investors who ended up investing in us saw the vision where they said we could get rid of this infrastructure of service based cost. Fedex will deliver for you and then the patient, also you have a patient preferred product. The patient, if you ask any patient, I mean we’ve done tons of patient studies and they say, “Do you want a stationary concentrator with tanks or do you want the Inogen One?” They all want the Inogen One because it prov-, it was designed completely for a patient. It provides all of the freedom and mobility that they want. Now obviously we could do better in battery life or weight, you know everybody wants everything smaller, lighter, better [CK: Sure] but in terms of comparison to what their other options were, it was a significant improvement in value for them. And if the provider can make that capital investment and then reduce their service and cost they also will improve their business as well.

CK: I’m getting really excited just listening to this. [AP laughs] I mean you know, from an investments perspective, from also from the customers perspective so I think that’s really great. So other than your grandma, I know that you talked to your competitors to talk to get the engineering feasibility study there which is great, two thumbs up. Did you talk to other potential customers who may acquire this?

AP: We also in our initial work before we even won the business plan competition we called providers. So how the channel works is the manufacturer makes product then the provider rents the product to the patient and typically gets reimbursed from Medicare or other insurance. So we had already gotten the patient feedback and we had talked to more patients than just my grandmother but she was the primary. [CK: Right.] What we also did was talk to the people who would be our customers and we called providers and we had a hundred percent of providers say, “If you could develop a portable oxygen concentrator that reduces our servicing cost like you say it will, we would be interested in buying it.” So we got that feedback from every part of the channel. We also got a scientific advisory board with doctors because for us there are three components of people who have a stake in our product. Its the patients, its the provider and its the doctor.

CK: Who makes the recommendation.

AP: Right. The doctor actually writes a prescription for oxygen, oxygen is a drug and they want to make sure their patients have the best product and we wanted doctors to be accepting of our product as well so we brought them in in order to make sure we met their needs for a clinical efficacy for the patient.

CK: So sounds like the system is working.

AP: Yeah, yeah I mean overall I think its working. You know we still have the highs and lows, we’re still in that entrepreneurial stage where you go, it swings back and forth but overall we definitely are making great progress and continuing to innovate in the business.

CK: So sounds like you don’t really need to get on the infomercial trail to you know the AARP community.

AP: We are actually doing TV advertising now. With just this last year we started that and this is actually a new business model for us, we typically before that had just sold to providers and then what we found is that a lot of patients wanted to just buy their oxygen especially with a portable solution that would work for them. So we started offering that to patients and got such interest in the product that we now drive patients through advertising to our call center and then we sell them for cash if they’re interested and if they’re not we refer them to a local provider that can help them.

[20:00m]

CK: Sounds good, that’s great. Let me see if I have any other questions. Oh yes. Transition from student to entrepreneur. What did it take you, was there any moments where you finished school and you said, “Alright, now I’m an entrepreneur.” Was there a moment or was it just really gradual?

AP: There actually was a moment. We had, my senior year was the year that we really had been working on product development. We had our first Angel money in so we had our CEO, we had our design firm working starting late in my junior year and then we knew were going forward, we were working on the design and we actually closed our first venture capital round the Monday following graduation. So it was perfect timing for us and, and right then we knew, OK now we’re serious, everbodys going full time as fast as we can go with the venture capital money. But for us it was very nice to have that security knowing right when we graduated that we were closing that following Monday so we jumped right in, into the process.

CK: So as you’re developing this venture, this enterprise and it sounds like things are, you’re hitting all the right notes, new people are investing, your customer feedback, your competitors are also giving you feedback and so forth. What’s going on in your head from a students perspective to an entrepreneur perspective? Did you think about, oh I need to go read some XYZ books to learn about strategy, marketing, or investment and so on, so forth was it-

AP: I love to read so I was reading constantly and, and trying to absorb as much as I could. We had our CEO Cathy O’Dell umm and she was really trying to mentor us. Make sure we got the information we needed but all three of the founders were just trying to dive and really it was sink or swim for most things and using the community as we could to get feedback and help on issues that we didn’t know but we were jumping right in with everything basically.

CK: So was there, you mentioned community, was there a particular reason why you stayed in Goleta?

AP: Yeah, I mean a lot of it was actually because of the proximity to the University. We had had a tremendous amount of support from UCSB through the Technology Management Program in our early stages and so we had already reached out to the community you know, through our CEO, through our first Angel investor, through our law firm then it made sense for us to stay in a community that was so supportive of local entrepreneurs especially people our age where they were looking to help us, they wanted to get us help so for us it was a great environment to start a company and there’s a lot of people around here that are technology focused so we could leverage the people graduating out of UCSB for help-

CK: For staff.

AP: Yeah right, right.

CK: Awesome. In what other ways could, are there advantages to stay close to the University.

AP: I still think that we’re getting advantages from the University. We still use a lot of interns from UCSB to come in, especially engineering, but also other areas of the business as needed to kind of help, we feel that the students here are great and that we get a lot of great talent. People who want to learn, want to get involved in business and have a great attitude. So that’s helping a lot. We also just, you know the local community, I have to tell this story. Our law firm, when we initially got started and we were students, we didn’t have money for the incorporation fees you know its like a thousand dollars or something and as poor college students a thousand dollars is a lot and through the University they introduced us to a local law firm, Stradling, Yocca, Carlson & Rauth and they, they basically allowed us to pitch our business plan to them and after hearing the pitch, David Lefeet, the partner there said, “Alright we will pay to incorporate you.” And not just their time, the fees, they were fronting the fees and actually did legal work for us for a year and a half and they were accruing bills but didn’t require any payment until we got our first venture funding.

[25:00m]

So they said, “You know, everything if it works we think its a great idea, we’re behind you and if it works then great you can pay us then, otherwise we’ll write it off as an experience.” But they were the first people who actually put their neck out and said, “Alright I’m in and want to help you get this started.” And I think its critical to create those relationships, the people that see your vision and want to help you make it happen and there’s so many people that will help you. And as entrepreneurs I think, we thought, you know, you do it all in a box, you do it in your garage, and you don’t tell anyone what you’re doing, don’t ask for help. And what we found is that the more people we asked, the more people that were willing to help us. We had people that we would say, “Why would they spend time with us?” and they would spend hours you know just talking because they enjoyed passing on that knowledge. And I’ve found that now I love talking to other people about their ideas and trying to help them grow so I can encourage other entrepreneurs to step out and ask for help and see what they get, because I think you’ll get more than you expect to get.

CK: Thanks for sharing that actually. This is really one of the reasons why we started this whole interview series because a lot of techies think that, “I just need to get a perfect product out there then the world will love it.” [AP: Right, right] [???] But the truth is that you know if you don’t ask for help, you know, all these things available for you especially in the University won’t be able to help you so its perfect. [AP: Yeah.] Thanks for sharing that. That’s fantastic. Ummm let me see.

CK: OK great. Alright, so, thinking back, know what you know now right, we’re at now the, do you have some advice for technologists who want to do similar things that you’ve done already in terms of fundraising, in terms of prototyping, in terms of marketing, in terms of monetizing from your innovation?

AP: Yeah, I mean there’s a ton of things and I think that every entrepreneur is influenced by their own experiences in the past and its important that an entrepreneur, when they’re asking for advice, that they recognize that everybody is influenced by the experience that they’ve had and because of that you’re going to get conflicting advice. I know we got so much, you should do this, you should do that, you should do this and none of them were the same so I think you have to go out there and you have to hear peoples’ opinions and listen to them openly but then you know what you’re trying to do and your business and you need to decide whats the right path for you. So listen to as many people as you can, talk to people, get resources but then internalize that and decide whats right for your business because some people will give you advice that maybe is right for a software company, as you said as Google you know, that’s a great approach for them. Wouldn’t work in other industries and so there’s a lot of movement and business is not right and wrong. There’s a large shade of gray in the middle and there won’t be as clear of a path, so entrepreneurs need to realize that, accept that and enjoy that. That’s part of the fun is deciding which path you’re going to take and going through with it. In terms of product development, I think that I would recommend people spending a lot of time making sure your product works and again that is influenced by my own experience but making sure you put a product out there, especially when its a product, that works and that people will when they look at it they go, “Wow that is the high quality product that I know I can rely on.” So, and its also important to use a lot of resources there, I know we said we started with a local firm, we quickly realized the chemical process of actually separating oxygen from air, they didn’t know anything about that as much as we didn’t know anything about that so recognizing where your short falls are in terms of technology development and pulling in those resources and you can just have them do small portions and then integrate it in; but if you don’t understand something and that’s a part of your key product then bring in those resources.

CK: Quick interjection really quick. Bringing those resources, so a lot of people think that [???] Santa Barbara resources. So the Internet is a very good tool to do that as a entrepreneur when you don’t know where to find that process that could concentrate things quickly.

AP: This the great story, kay? So we didn’t know anything about the chemical process of separating oxygen from air, we learned on the Internet that it was called pressure swing absorption. We actually went to the UCSB library and at the UCSB library there’s a book called Pressure Swing Absorption, so we pulled out the book and it was a big book and we said, “Oh this is kind of complicated.” We looked at the author on the book, googled him and then we actually called him and he said, “Oh yeah, I could be interested in that but you know what? The co-author on the book has this little consulting business and he helps companies figure out how to do PSA, you should call him.” And we actually ended up and we found out that there were only like three people in the world that really understand PSA, the one was the author of that book, the second was the co-author and another was another guy. And we talked to the guy who owned the consulting group and he actually bought, we again pitched him on the business, the vision of what we had for where we were going and he actually gave us an exclusive for PSA cycles in a small portable oxygen concentrator that he would design with our help for our system. So a lot of its just, you know, I mean, we, this has got to be somebody who knows something about PSA instead of reading the book we’re looking for real help not theoretical work. So reaching out to those people its not that hard to get contact information and then calling them and seeing if they’re interested in a consulting venture.

CK: That’s a great story, I love it, it’s awesome, that’s awesome, that’s good. OK. Anything I should, actually no I’m sorry, so you talked about fundraising, prototyping, you talked a little bit about marketing already, monetizing from your innovation. Can you say a little bit about that, thirty seconds.

AP: Yeah so, umm, you know, it’s, when we looked to actually you know, start selling our product a lot of it was figuring out who our customer was and kind of with the marketing of who are we as a cust-, as a business and who do we want to sell to. So we took the product and said, “Alright, we know that we can save money on the service component so we need to factor that value into the cost of our product.” And so when we looked at our profit margins we could get significant improvements in profit margins just because of that value. So once we sold customers on that we were able you know, substantially start rackin’ up the sales. In terms of our long term strategy and kind of where we’re going as a business, we’re still looking to continue to grow revenues, continue to grow profits as we go along and our venture capitalists eventually are looking for some sort of exit.

CK: Eventually.

AP: And I think, eventually, I think we will be able to get them some level of return for, for the investment that they’ve made in helping us grow and reach the level of profitability but we continue to want to grow over the next couple of years and invest in R and D and new business strategies. So that’s a critical component of making sure we reach our our end goal.

CK: Great. Is there anything that I should be asking on behalf of our listeners, fellow technologists that I’m not asking right now?

AP: You know, the one thing I can think of that a lot of people, entrepreneurs, and especially students ask us is, “How did you guys raise so much money? As students?” and we’ve raised fifty five million dollars and uhh we actually have done that through great relationships. Getting the key expertise and the business, having an experienced CEO, people designing the product and then getting investors to buy into that vision of where we’re going and what the company could be. And for us, once we got that first venture capitalist bought into the idea, the world opens to you, of other venture capitalists that may be interested in the deal. So I tell people, “Don’t focus on how do you get fifty five million. Focus on how you get that first three to five million.” And once you get that three to five million and you are tracking and going in the right direction and starting to show your vision then the rest of the money can come as you meet milestones and grow the business. But some people go, “Whoa! Fifty five million that’s a huge chunk to get,” and it doesn’t come like that and you need to just focus on the initial rounds and then grow from there.

CK: Excellent. Thanks for the feedback and some stories. Ally really really appreciate you being here with us, if anyone who is interested in Inogen as whole, or advice from you, where can they reach you or find out more about you?

AP: Yeah, you can go to our website it’s www.Inogen.net and our contact information is on there and they can reach me through there.

CK: Great thank you so much.

AP: Yeah thank you.

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Innovator Interview: Tony Wong, Founder of Digital Onion, “Point Man: Setting Real Goals and Getting Things Done”

tony

Innovator Interview: Tony Wong, Founder of Digital Onion

“Point Man: Setting Real Goals and Getting Things Done”

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“Get everyone on the same page and use a BIG page.”

In today’s faster, more complex business environment Tony Wong, the founder of Digital Onion, has redefined the role of Project Manager.
His Point Man Leadership method reorders and simplifies tasks for better results.

He started out in software development and moved his way up the chain, transitioning to project management. Along the way he has learned what works, but perhaps more importantly what doesn’t. He will give you some tips on how to better manage your time, by focusing on what is important and simplifying your project system.

To date Tony has managed multi-million dollar projects for several big name companies, including: Nestle, Honda, Lexus, and Motorolla.

Website: http://digitalonioninc.com/

Blog: http://digitalonioninc.com/wordpress/

Interview between CK Lin and Tony Wong

CK: OK, wonderful. So today I am really really excited to have the founder of Digital Onion with us today. He is really an expert in project management, you know, the new way of doing project management and how do you accelerate the way you accomplish you know results for whatever it is that you do. I think you guys specialize in software development so I’m sure that you can also encompass other areas of technology as well so Tony why don’t you tell us a little bit about who you are, how Digital Onion was first founded.

TW: Was first founded. Well I grew up in software development. Started as a project manager, worked my way up the chain and I’ve been in the business for over a dozen years so I’ve done it the hard way so all the project managers who are listening they know that I’ve been through what they’ve been through. Some where along the way you know, during the first bust, and we’re in a much bigger bust now, but during the first Internet boom and bust I actually came out thriving and flourishing through that bust and I ended up running a program for Honda and when I got there the staff was around four people, I reduced it to two and then within nine months built it to forty five. [CK: Wow.] And we delivered on a seven million dollars worth of service revenue, one of the biggest projects was over two and a half million dollars and I did it the old hard way. I did it through blood, sweat and tears. [CK: Right] And through that experience we created a quality product, a quality team, met all our success criteria like time, scope, and cost but at the cost of my personal health and probably some of our team members.

CK: Can you say a little bit more about that?

TW: Uhh, well the way project management and software development used to be done and a lot of companies still is done is done through some sort of promise of time and scope without knowing exactly what its going to take. And in software development, and Fortune Magazine called software development the most complex things humans create, it’s impossible to predict what the level of effort is going to be or how long things take.

TW: So the most complex things human creates, humans create. And so the way software development is done by default is that you promise a certain amount of time and a certain amount of scope and a certain amount of cost and so all three factors are locked right? And so what are the, and so invariably when people get into a project they find out it’s taking much more effort, things aren’t the way they thought it was going to be and so somethings gotta give.

[5:00m]

But if you’re contractually bound to that software development triangle of time, scope and cost, what do you think gives? Quality, team satisfaction, client satisfaction, right? [CK: Right.] So those are some of the things that gave and we tried to lock it down and just say, “Hey you know what we will sacrifice ourselves, we’ll work sixteen hours a day, six days a week for thirty six weeks.” And that’s what we did; and we pulled off a great project but at the end I came out with much poorer health, I was stressed, I was drinking, it was just not good. [CK: Wow.] I actually, after I finished the project I ended my, my job there. I quit, and I didn’t work for nine months. And out of that, that time off I decided that you know what? I still love what I do and the industry in which I do it, but there’s got to be a better way and through that time off and that questioning came the genesis of Point Man or Digital Onion’s project management system.

CK: Tell us a little bit more about this Point Man, [TW: Point Man?] the system.

TW: Well the system is used to better our client’s project management so what we do is we transform our client’s project management such that it’s successful, effortless, and fun. If you know anything about project management those are three words that are not associated with project management. [CK: Right.] It’s more like iffy, tedious, and painful right? [CK: Right] So what we’re doing is we’re completely shifting the paradigm, redefining what project management means and we use project management just so others know what we’re talking about but really we don’t manage we lead. So when we think of what we do we think project leadership. How do you be a leader in today’s much much faster business environment?

CK: It’s still kind of vague to me. Very generalized, I totally get the fun part, I’m very much interested in what you have to say, can you give us some concrete examples of what it was like before, what was it like after and you know, walk us through the thought process please.

TW: Well, from a business perspective someone buying our services would be interested in the most concrete factors like time, scope, and cost. I’ll use an example of a project we did last year. It was for the CEO of a company and this CEO had actually run a web services company, an Internet consultancy, for ten years and sold it, sold it to WPP. So it was a big company, he sold it for fifty million dollars. [CK: Good brand.] So he knew what he was doing and he came to us and said, “Hey we have this project, needs to be built, I just want to know how much its going to cost and how long its going to take.” And I told him, “Well we don’t do it in that manner we use a different methodology.” and I said that, he said, “That’s fine I understand just give me some sort of estimate right?” So I did it the old waterfall way and I estimated in time and cost and scope. I started with the scope and I said, “You know for this amount of scope, well it’s going to take about ten thousand man hours right? And ten thousand man hours translated in consultancy rates at say an average of two hundred dollars an hour, that’s two million dollars.” And two million dollars to actually complete or ten thousand man hours to complete takes nine, twelve, fifteen months. So I gave him that information and he said, “OK well that’s great. I certainly, one I certainly don’t have two million dollars to give you, two I don’t have nine months I have eleven weeks, and three I need all the scope I just gave you.” And he asked, “Well can you do that?” and I said, “Honestly, I don’t know.” and that’s the crux of what we’re talking about. You can’t predict what you can do in software development because its to complex, there are to many variables. I did tell him that, “You know what? I’m pretty sure we can do it and I don’t know how long its going to take, but its not going to take twelve months. Maybe it takes six, I don’t know, and its not going to cost you a million dollars, I think we can do it in half, or two million dollars I think we can do it in half.” [CK: Do it in half, right.] So what we did was, we got the project and we completed the project in fifty-five hundred man hours instead of ten thousand, right? So approximately a forty-five percent reduction in budget and we did it in eleven weeks.

CK: Wow, so you actually accomplished what you wanted to do.

TW: Yeah, yeah. So from a business perspective that’s your tangible output. We did it in half the cost, in one third of the time.

CK: And this is consistent from all your clients?

TW: Yeah. So that’s from one side. The other side is from the human side, how do I know we created transformation because when you walked into where the team was working you heard laughter, you heard music, people were actually talking to each other. One discipline from information architecture was talking to front end developer who was talking to a back end developer who was talking to a visual designer. They were actually sitting around the same table and working, with music playing and laughter.

CK: And that’s not the norm?

TW: No. That’s not the norm.

CK: The norm is?

TW: Headphones on, don’t bother me, I’m just doing my job, I’m throwing it over the wall or via email I’m saying, “Hey I’m done with my job there you go.”

CK: I see.

TW: There’s no team work.

CK: Got it.

TW: Here’s another thing. We tracked peoples on timeness, their timeliness. Because from our point of view.

CK: To deliver their milestones.

TW: Well no just to show up to meetings. We had a daily meeting at 10am everyday and our theory is that if you can’t make your time and place commitments how can we count on you to to deliver a critical piece of the application. A design or a user flow or what have you. So we tracked all the on-times during one sprint or one period of time and it came out to: two hundred and eleven opportunities to be on time and there were about eight people on the team, so out of those two hundred and eleven opportunities and based on what you know of business and the way we are how many time do you think people were late? Out of two hundred and eleven opportunities.

CK: Is this before or after?

TW: This is during the process.

CK: I would say the percentage would be very low.

TW: Very low?

CK: Yeah.

TW: OK.

CK: Traditionally I would think it would be very high.

TW: OK and what would be very high?

CK: You know like 80% of the time people people would be late and its totally OK etc. etc.

TW: Right, and people would just walk in, not say anything whether they’re fifteen minutes late or half an hour late. They just walk in and don’t say anything. Eighty percent of two hundred and eleven is a hundred and sixty some odd times late. We had five lates. [CK: Nice.] Five. [CK: Yeah.] That is extraordinary, that truly is a transformation in the way people conduct themselves in the American business environment. That is unheard of. So how do I know if the systems I implement are working? People are showing up on time; and when they don’t, they clean it up. It’s no big deal. “Sorry I was late, you know, traffic, whatever, it won’t happen again.” Second time: “Sorry I’m late, I, based on our agreements I owe the team lunch.”

CK: OK, so there is some kind of agreement?

TW: Oh yeah, there is an agreement. Oh yeah, and this isn’t enforced, this is provided as a choice. What happens in our systems is we can see what happens at the end and most project managers or people doing software development can’t see that or people leading teams can’t see the end. We can see the end so we’ll spell it out for them. We’ll say here’s [audio distortion] we have a ten o’clock meeting or an eleven o’clock meeting, whatever it is and I expect you to be there on time [audio distortion] your cellphone which should be the same time as mine [audio distortion] and by the way 10:01 is late. [CK: Yup.] Because if I’m going to meet my agreement, my commitment to you to end the meeting by 10:15, I need you there on time and its disrespectful to your team members. And there are consequences because I know you’re going to be late, I’m going to be late; and here are, typically here are our consequences and we agree to what the consequences are and then I tell ‘em how its going to feel. So I tell ‘em, you know at first you’re going to think that I’m dominating you, I’m just being a jerk for calling you out but I promise you I’m not, but you’re going to feel like that and I’ll remind you when it does happen that I told you this. [CK: Right.] And they say, “OK.” Most people say, “OK, alright, well I’ll try it out.” Some people are hesitant and to be frank I think they cave to peer pressure [CK: Right], OK, whatever works. Over here we have a sheet that reads lateness tracker ‘08. [CK: Yeah.] You can see my name with a whole bunch right there and then you can see its crossed and I have fewer because I paid for lunch. [CK: Ahhh] Team lunches. [CK: Nice.] And even for the owner of a company, you don’t want to do that to often. Seventy-five bucks every time you’re late, you know, not fun.

TW: You see this name right there, Kate? [CK: Yeah.] That is all for all of 2008. That girl has never been late. [CK: That's awesome.] Never. Impeccable, quite amazing.

CK: Is there a reward for being impeccable?

TW: Being impeccable. [laughs] That’s your reward. Being an extraordinary person.

CK: That’s awesome, very cool. Ummm no this is fantastic. So let me see, so what’s the most rewarding moment for you so far since you started Digital Onion until today. I know you that you just talked about the client relationship that you have, you know results you helped them produce, any other rewarding moments?

TW: Yeah actually, up until this week it had only happened once and after this week it happened twice. I’ve been fortunate enough to conduct workshops or meetings or just be in a group, a room full of a group of people and either providing some content or leading them through a process and at the end, this has now happened twice, the attendees stood up and applauded. OK, now here’s another transformational part of what we do. How many times have you heard of or experienced in a business meeting people standing up without request or ceremony and applause. How many times?

CK: Not many.

TW: None.

CK: None.

TW: No one I know of has experienced that either. Now I have experienced that twice. I was up at Motorola, I was there to, as a consultant and supporting other team members in implementing a new process. I had a vague feeling that they weren’t ready but they said they were fine so I was there just to support them. Twenty minutes before the meeting the person that was supposed to conduct the work session and that persons boss turned to me and said, “You know what? We’re just not quite comfortable doing this yet, do you mind running this session?” So I look at my watch, the meeting starts in twenty minutes and this isn’t an hour meeting, this is a six hour work session. [CK: Oh wow, nice.] [laughs] And so I, I, you know I’m looking around, “Well I haven’t quite prepared.” They’re like, “Well you know it you can do this.” [CK: Nice.] and I said, “Well OK, I need colored notecards, give me some sharpies and whiteboard sheets.” And then I jumped into a meeting with four divisional Vice Presidents of Motorola and their managers and their team, so the room was about twenty people. [laughs]

CK: Talk about under-prepared, a little intimidating, yeah there you go.

TW: So I actually asked the person who was supposed to be running the meeting what the agenda was and I took that and I’m like, “Kay, alright guys here we go!” And I crumpled the agenda and I crumpled all the handouts and I said, “Alright here’s our goal lets just see if we can accomplish the goal in the six hours.” So I went through a whole planning session for a new product they were to develop and at the end I said, “Thank you very much for your time, I think we’re good, we’ve met our goal,” and the people in the room stood up-

CK: You did it in under six hours right?

TW: Yeah. [CK: Nice.] Of course. [Laughs]

CK: Of course.

TW: They stood up and applauded. I had the Vice President of Engineering of this division at Motorola say, “Dude, I’ve been coding for twenty years and I like coding. This is way more fun than coding.” And they were like kids in a candy store and mind you this is a business setting. I wasn’t passing out, handing out beers and watching TV, we were doing work; and just by the process that we taught them, they were much more alive and enthusiastic about doing the work. So that was my greatest reward, the applause.

CK: Thats awesome. Congratulations.

TW: Thank you.

CK: Yeah there’s going to be many more to come.

TW: Yeah, hopefully.

CK: Yeah hopefully, hopefully. So what is the thought process that has changed from the beginning of this journey to today. You know things that you believed that would, weren’t ever going to change or thats just the way it is to new way of thinking. Anything like that?

TW: Yeah, absolutely. We have a point of view on the type of leader needed today in business in general and this really stems from our experience in running software projects. What we found is the type of person that is necessary to lead a group of people to accomplish a goal today is much much different than the type of leader needed in the past and I think the delineation between today and the past happened around the first boom. It’s when the Internet came of age that everything started to shift because of the speed and accessing information that created ripple effects that we’re now seeing today. So today we have almost perfect and immediate access to information. [CK: Yeah.] We get it obviously in our email, through our browser, through chat, through IM, through Twitter, through text, through voice mail, regular telephone, mail, we’re just inundated with information so the type of leader that used to lead in the old world was the type of person who could execute a plan right? [CK: Yeah.] And that leader also had a depth of knowledge right? But today executing a plan and depth of knowledge doesn’t work. Why? Because of the speed of information is constantly changing your plan. So if you spend months creating a plan and you bring it you know, in the old world, and bring it into today’s world how long do you think that plan would last?

CK: Not very long.

TW: Not very long. You know maybe weeks-

CK: It’s a nice guideline.

TW: Well yeah, now there’s the shift, so the new type of leader, this new breed of leader actually uses a guideline, not a detailed plan. But that requires now different, a different skill set in a leader right? The old leader meticulously implemented that plan and shoved reality into that plan, right? Now today you can’t do that. You have to let reality rule and adjust your plan. Now you need not just a plan, you need a system for a plan, right? Because that plan evolves, we call empirical planning. That plan is constantly changing so now this leader doesn’t need depth of knowledge per se because he almost has access to perfect information

TW: So this new type of leader then doesn’t need necessarily that depth of knowledge but that leader needs to be able to see through the mass of data, to know the terrain right, to really be able to see whats going on and then pick out whats most important.

CK: The pattern recognition ability.

TW: Right, well, the pattern recognition and out of all the different things, hundreds and hundreds of different ideas and scenarios and situations; that leader now needs to be able to stand in the midst of that and its almost with that much data, its now, its not the known, its actually the unknown. [CK: Right.] So that leader has to be very very comfortable in the unknown and say, “You know what, that’s most important and we’re going, that’s our target, we’re going to hit that target.” And then block everything out until that target is reached and you reach it quickly. I’m talking weeks, not months, not years. Weeks, you hit the target great. Now you look back up, the landscape has changed again, right? [CK: Right.] “Whoa, we’re off course again.” Reconnect with that goal find a new waypoint, hit that waypoint as a target, knock that down, then you’re incrementally always moving towards your target, right? And its all based on reality, not based on some plan you created months ago.

CK: Hmmm, this is very good. So obviously Digital Onion is run according to this philosophy.

TW: Yeah and that philosophy is poignant.

CK: How are you guys doing, you know talking about in dollars and cents, you know the actual performance wise right? How are you guys doing?

TW: How are we doing?

CK: How are you doing.

TW: Knock on wood, these economic times I’ve seen my companies, my friends companies go down in flames. And that’s not a metaphor. I’ve seen companies that were, in the first half of this year produced eight million dollars in service revenue which is pretty good for a you know, start up consultancy, go to zero. [CK: Wow.] And not just one, multiple. [CK: Multiple, right.] And in this economy we have more work than we can handle, we’re picking up great clients. We’ve picked up clients, the Fortune 100 clients like Disney and Ogle V and Toyota and other premier clients that are much smaller but are very well respected in the VC community here in Los Angeles. People who have launched very venerable brands and only hire the best; and now we’re contracted to execute their project management for each one of their start ups, three to four a year.

CK: Wonderful, congratulations.

TW: Yeah so we’re doing well.

CK: You’re doing pretty good, that’s awesome. Ummm, what was I going to say, maybe I should look at my cheatsheet really quick. So you talked about the philosophy, you know, I really, I’m actually really inspired by the philosophy that involves not only the business process, the results, but also the people involved, right? You know how people within the company actually interacting with each other. That you keep each other accountable which is also awesome too. [TW: Yeah.] So that’s fantastic. Can you walk us through the specific methodology of how that works? So then people have a really clear idea of what the Point Man program is. Does that kind of make sense?

TW: OK, ummm, I’ll start with what the key tenets are and then regress backwards [CK: Perfect.] if you don’t mind. OK ummm the Point Man methodology is based upon four main distinctions. One is plan empirically which would seem like an oxymoron, a paradox, how do you plan empirically, well this is the system that I mentioned before. In today’s world with the amount of change and the speed of information, plans don’t, plans don’t stay together for very long. They just don’t hold their worth very long. So you need a system to be able to adjust and plan based on the changes that reality sets forth. So thats one, plan empirically. Two, you need to lead rather than manage. Management is, is a funny term it justs, it, I think it has connotations of doing all the unnecessary things, the things like, well you tell me. In the project manager what do you think the project manager does?

CK: They manage peoples’ work efforts [???] accomplish certain tasks.

TW: Yeah, they manage peoples’ work effort. So what does that entail?

CK: Are you working enough, oh you’re not working enough you should work more, blah blah blah.

TW: Did you do this, where is this, is it, its late, is it going to be late, right?

CK: Right.

TW: [Clears throat] That’s managing, which eats up a lot of time, effort and energy.

CK: Yes, I can attest to that. [laughs]

TW: And what you would rather do is lead, and leave the managing to someone or something else. So we create systems, intellectual systems and they can be either be supported in software or paper systems or a bulletin board but systems do the management for us. [CK: OK.] That frees us up, us up to lead rather than manage. So that’s the second tenet. The third tenet is, in this mass of data and constantly changing [???] you need to be able to see what matters most. [CK: Yeah.] Ummm, ah damnit what, who wrote Getting Things Done?

CK : David…

TW: David Allen.

CK: David Allen, there you go.

TW: David Allen in his book Getting Things Done said that the typical person when they aggregate all their to-do lists typically has about three hundred items on their to-do list. Someone running a company probably has somewhere more like six, seven, to eight hundred. [CK: Right.] I know that I have countless to-dos [CK: Yup.] and-

CK: To-do lists of to-do lists.

TW: Right, and I know from personal experience in trying to prioritize that on a daily basis is just not feasible. It would take me an hour everyday just to prioritize-

CK: At least. Tomorrow you got to do it again.

TW: Right, and then email, which is constantly coming, constant feedback, constant to-dos, requests, sales requests and so whats really necessary is the ability to see what matters most. So that’s the second tenet, or the third tenet. Now the fourth and final is get to the goal no matter what. Nothing matters except the result. [CK: Yup] Given some legal boundaries, right? But other than that nothing else matters, get to the goal no matter what. No I’m not saying in the software development paradigm that you should you know, sacrifice your health and work sixteen hours a day, seven days a week for months on end, I’m not saying that. I’m saying within the constraints, the rule boundaries that we gave you, maybe you work a little more, but maybe not. Maybe you find a better way there, maybe instead of going around the mountain, maybe there’s a tunnel right through the mountain, or maybe going over the mountain is easier, maybe there’s a bridge, I don’t know, there are countless options so those four tenets are what make up Point Man.

CK: Very cool.

TW: Yeah.

CK: Umm, OK. Do you have any…

TW: The history of the Point Man…

CK: You can talk about the history of Point Man [TW clears throat] because you, you’re breaking it down a little bit more now, right, but I’m thinking say, if somebody who don’t understand what your company actually does if you can tell them like if we have a problems this is what we do, we get the right people together in a room then we do a process called Scrum or whatever it is, when you kind of talk about it so demonstrative of the thought process versus talking about it, does that make sense?

TW: Demonstrate the thought process…

CK: So assuming I have technology, I have a company coming to you and you know, we give you X, Y, and Z data and you said, “Oh that’s irrelevant you just got to keep people together.” I don’t know what you guys do that’s why I’m asking.

TW: Right, OK. Here’s an example of what we do. We were hired by a local consultancy that Toyota as client. Now they had had had Toyota as a client for approximately eight months. They were doing an owners website for one of the Toyota product lines. And they’d been working on it for eight months and it was already two months late. So the launch was supposed to happen after six months, they’re now into eight months with no launch in sight, right? So now the CEO of that company, who I’ve known for five years, comes to me and says, “You know what? We’re in a mess. We have a great client, Toyota, and we’re late, we’re two months late. Help. We need- We can’t lose this client, we can’t screw this project up.” So when we come in, in a matter of two weeks it was live. So the question was: what-

CK: What’s the magic?

TW: Yeah, what was the magic? Well they were focusing on the eighty percent that didn’t matter. What they didn’t, what they couldn’t see was the twenty percent that would get them to their goal no matter what. That’s what they were missing. And our ability to see whats most important is core to our systems and teaching and our way of thinking; and our way of thinking is based upon creating space in the mass of data, just a little bit of space such that you can see really whats important, right? So the way project managers typically umm fix problems is we like to describe it through what we call leak stopping. Like a leak stopping analogy; if you think about the bottom of a hull of a ship with all these leaks, you hire a good project manager, good project managers cost anywhere from seventy to, oh I don’t know, a hundred and forty thousand dollars. So lets say its a hundred thousand dollar project manager right? You hire a hundred thousand dollar project manager, they are excellent leak stoppers, they will come into the bottom of that hole and they will plug ever leak they see, right? But they’ll be plugging it with their own hands. They may have some Duct Tape, maybe some epoxy but they’re plugging all the leaks. New leaks are springing up, plugging leaks. [CK: Right.] That’s an expensive leak stopper, right?

CK: Right. A hundred and forty thousand dollar or whatever it is.

TW: A hundred and forty thousand dollars a year and what happens when that person leaves? All the leaks spring back, right?

CK: Everything comes back, yeah.

TW: When we come in, we step into the home, we’re there with that, you know, with the company’s project management staff and they’re saying, “Look at all these leaks, help us plug ‘em.” And we say, “Well OK, let’s just a moment here and see whats really going on, see whats most important,” and we take a look at the leaks and “That’s a big one, that’s a really big one, that’s a small one, got a lot of leaks.” And they’re like, “Hurry up, come on, let’s start stopping leaks.” “But wait a second, what about your buddy over there with the pick-axe, don’t you think we should take that pick-axe out of his hand because he keeps on punching these leaks.” So we work from the causational factors. And then most of the reaction from the companies and the staff that work with us is, “Ohhhh, yeah, the guy with the pick-axe. He’s creating new leaks.” He or she or whomever. [CK: Right.] So first we take the pick-axe out of the guy’s hand. Great. Now we have a finite number of leaks, now let’s start patching them up.

CK: I see. Does that create any kind of ill will between the staff person and you?

TW: Person in charge?

CK: Not in charge but the person with the pick-axe.

TW: Ummm, sometimes.

CK: Yeah.

TW: Yeah. Uhhh but that’s also our challenge, right?

CK: And that’s also your expertise to manage relationships and be able to word it diplomatically and… [TW: Well, yeah.] Or not. [laughs]

TW: Yeah, I mean sure, it’s, it really, the stance, the place that we come from is, its not what you do, its how you do it, [CK: Right.] right? And how we do it is not for our benefit [CK: Right.], we are there to help and serve these people, [CK: Right.] so when we come from a place of service most people recognize that and say, “Oh, you know what,” it clicks and they realize that, “these people aren’t coming in to tell me how to do my job, or even to take my job, they’re just here to help.” And once that, once they see it, and I think they see it very rapidly because we just come from a place of service they realize that, “Oh, yeah, sorry. Here’s the pick-axe, I didn’t even know I was using the pick-axe. Let’s stop all these leaks.” Does that give you a better sense?

CK: Yeah, it definitely, ummmmm, definitely. How, so where I’m coming from these questions, this probably won’t be on camera is that, if I were interested, taking your methodology [TW: Right.], just listening to this tape or watching this clip, right? I like to some kind of benefit out of this so all these philosophy for Digital Onion, great. But I can’t take it and run with something, does that kind of make sense?

TW: Right, there’s nothing like a tangible like technique-

CK: Right, something like a, like a technique or you know something that I could take it and say, “Oh wow I’m really inspired, this is great.” Then this is the following steps I can actually take to transform whatever my organization is, and then this, where I’m coming from is, if we can actually teach ‘em a little bit, a little of content; and they will then try it out, you know they fail, they will succeed, whatever. And then they will be interested in coming back to you ultimately and saying, “I would like to learn more about this, can you teach our employees to do this, whatever.”

TW: Right. Alright, well then this part can maybe fill that, that void. [clears throat] The Project Management Institute which is our defacto standard, our governing body for project management, says that, “A project manager spends eighty percent of his or her time communicating.” Eighty percent. Why do you think that is?

CK: Communication don’t work well, very well.

TW: Right, there’s something inefficient in the communication. [CK: Right.] Communication is highly valuable, but there’s something inefficient. [CK: Right.] Now here’s something that someone watching this video can tangibly take away. How is communication primarily done in business today?

CK: Emails.

TW: Emails, right? And how many email do you get a day?

CK: Jeez, about a hundred plus.

TW: Yeah, same here. Highly-

CK: And I’m not even a business owner, [TW: Right.] right.

TW: Yeah and how much did you actually take in, reading, glancing over your email.

CK: They get about, you know, ten seconds.

TW: Right, and your really just eager to hit that delete button, right? Because you just want to clear that-

CK: Often times that’s what I do, yeah.

TW: Right, and that’s one of the main reasons that project managers spend so much of their time communicating. Is because their message is connecting with the person they intend it to connect to. And they’re using email for a purpose that it wasn’t intended for. It was intended for things that needed to be documented, for legal purposes, or for, as a means to communicate to multiple people at once. But it was, it’s a one way communication. It wasn’t meant for discussion, and people try to have discussions with email and hit reply all and you get these threads, and you’re looking at all these threads and you hit your shift button from top to bottom and delete all.

CK: That’s right, that’s right.

TW: Here’s a simple way to get your communication straight and really cut down on the time and effort you spend on communications. Get everyone on the same page and use a big page, right? What does that look like? It looks like one of these project boards. We have four by eight foot project boards that have the core information necessary, right? What’s necessary in a project? When does it start, when does it end, what are we supposed to do, where are we, right? And if there’s a core piece of communication that something big changed you either have an in-person meeting or you stick it on the board, right? Now how much time did you spend communicating?

CK: A lot less.

TW: A lot less. You just stuck it on the board and you set up a system such that that board, you ensure, ensure that the communications on that board are always communicated to the team. So we have daily meetings with our team members, and where do you think we have that daily meeting?

CK: Well, not only personally in the conference room but also through the board-

TW: In front of the board, right?

CK: Yeah, that’s right.

TW: And they’re only fifteen minutes a day so now I just really cut down my communications because I’m speaking to everyone at once, its two or three way, its interactive and its short. You got any questions, its on the board. If we can’t solve it in this meeting time we’ll set up another meeting. I didn’t email once.

CK: That’s excellent. Wow.

TW: Yeah.

CK: Simplistic and very powerful.

TW: It’s very similar to why sales boards are used in companies, right? That’s one of the few disciplines in a, in a, or departments in a company that still uses a physical board, right? All the time if you walk into any sort of sales organization they will have the sales leader: how much they’re at, where in time they’re at, like is it half way through the month, what the end goal is, and they track it. It seems like a very simple communication tool, but its, its simplicity doesn’t speak to the impact it has, [CK: Right.] right. It seems like a just simple whiteboard and numbers but automatically there is built in accountability in that board because if I, if we’re both sales people I know that you’re looking at that board and I know that you see how I’m the last one on that board [CK: Right.], right? [CK: Right.] So now all of sudden there is accountability [CK: Right.], I’m not pulling my weight and not, obviously we probably aren’t the only two sales people [CK: Right.], there’s five or six other people and you know, I know that you know that everyone else knows where I am on that board. [CK: Yes.] Because we are walking past that board everyday [CK: Everyday.], right? Now that its already, that just in and of itself is a pull system, is a motivator for people, right? Because people don’t want to be last on the board; and how much management did that take? [CK: Right.] It took none. All the management or leadership it took was going to Staples, buying a whiteboard, drawing some lines across it, putting the month and the people names and their, where they are in the sales process.

CK: So do you have a board for all the projects you have?

TW: Yeah.

CK: So you have five projects, you have five boards?

TW: Yup.

CK: Oh ok, got it. Because I only see one so…

TW: Yeah we don’t run our, we don’t have our project boards here because our clients are the companies that have the projects, therefore the boards are at their companies.

CK: Over there, got it.

TW: And we go there, stand in front of their board and conduct-

CK: Facilitating the meetings, got it. That’s great, fantastic. Ummm, you got a interesting story about the name Point Man, where did that come from?

TW: Point Man harkens back to umm the co-author of my book. His name is Richard Machowicz, he’s a ten year veteran of the Navy SEALS and the reason why it’s called Point Man is because a lot of the philosophies, the core fundamentals of the system, trace back to his experiences in the Navy SEALS. Things like, and you can see it in, in the way we conduct ourselves, our personality attributes. We often talk about personal responsibility, integrity, agreements, workablity, right? And in our general business culture those things are all but non-existent.

CK: Is that right?

TW: Yeah.

CK: Nice.

TW: In my, in my experience. There isn’t a whole lot of integrity out there. Personal responsibility, hmmm not really. Agreements, in our simple agreements, “Hey we had a ten o’clock meeting, you’re late.” “Oh, I was only five minutes late.” right. And one of the few places in America where that sort of level of integrity and responsibility is still highly present is in the military, and that’s where we pull a lot of our fundamental attributes from. It also happens to work nicely with the leadership aspect of our system. Its called Point Man because in small special forces like the Navy SEALS there is one person out in front, one person, and that person is called the Point Man. That person is finding where we need to get to and tracking how we’re getting there and is always on the lookout for the rest of the team ensuring that we all get to the goal. Now that isn’t to say that that’s the only person looking after the goal, the whole team is, but there is one person in charge and that’s the Point Man.

CK: The person accountable.

TW: The persona accountable, exactly.

CK: Got it, that’s excellent. Now, shift of direction really quick [TW: Yeah.], you talked about how this applies to software development. There’s many other issues; in the area of technology, innovation, other than software. Software is great, don’t get me wrong. Could this kind of thinking/philosophy be applied to other areas of research and development?

TW: Absolutely. We just worked with Opportunity Green who put on a conference just days ago, last week, last weekend.

CK: I was there.

TW: Yeah. They came to us and said, “Hey, we’re trying to put on this massive conference, we’ve put it on before brute we did it just through brute force, through our blood, sweat, and tears. We didn’t sleep for weeks and we burned people out, there’s got to be a better way.” And there wasn’t much time, they were just in chaos mode, just get it done, we’re working twenty hours a day. But we took four hours out of one of their days and gave them some of the tools that we teach, some of the big paradigm shifts of lead versus manage. Focus on what really matters and how to determine what really matters. And what really matters is getting to the goal, right? And forget your plan that you created in Excel that’s ten pages long, that plan is out of date. You have to have a simple plan that can adapt to reality. So we gave them some of these tools and a four hour work session, and they took those tools and the pulled off their second successful conference.

CK: It was very successful. And what was the main things that they took away?

TW: I think they just, they took away the distinctions of leading versus manging, and that there are important things to do and not important things to do.

CK: Right, urgent and important.

TW: Right.

CK: Right.

TW: Yeah, and they also took away the distinction that simplicity is the ultimate sophistication and a lot of people, especially in business, confuse complexity with sophistication. So they’ll, a lot of client will first come to me and ask me about tools, “What tools do I use?” And one of the most complex and robust collaboration tools out there is Microsoft SharePoint. I happen to use SharePoint because I think it’s the geek in me, I just know how to make it sing and dance and I think it’s cool, but I never recommend it to clients because it is way to complex; and that complexity in the tool breeds complexity in your process. And when you have a complex situation and you add more complexity to it, what do you have?

CK: More complexity.

TW: More complexity.

CK: More complexity, that’s right.

TW: One of our principles is: the whole world needs to be in balance. Its a Ying and Yang. So when you have a complex situation we recommend simple tools. Tools like Microsoft Excel, everyone knows how to use Excel. Create a simple list and share it. Put it on Google Docs, its free, simple to use. Forget the SharePoint, even forget BaseCamp. Google Docs, Excel.

CK: Excellent. Ummm Actually I think I’ve asked all the questions I wanted to ask. Is there anything that I should be asking but I’m not asking?

TW: Ummm I don’t know.

CK: Or anything that you wanted to say, last thoughts.

[5s wait]

TW: You know the ummm, the title of this is [CK: Art of Speed.] the Art of Speed. Tell me about the Art of Speed, why is it called the Art of Speed?

CK: You know one of the things that I’m really passionate about is technology and what technology can do for the good of mankind, so on, so forth, right? But, quite often times that I see, often times that I see is that people have great technology, they have great know how, they’re really frustrated by this process of innovation, get to the point where its actually sustainable, financially sustainable. Not only you built the product but financially sustainable. The business plus the innovation, right? [TW: Yeah.] It takes a long time. Traditionally-

TW: It can take a long time, yes.

CK: Traditionally, you’re right, traditionally its, the innovation process from university to outside world is about twenty years, through diffusion model. Twenty years. That’s a long, long time. So that means there is a lot of great technology within the University right now, not being used because people don’t know about it. The Art of Speed, what I like to do and what really part of this interview series is to really understand how can we actually speed up that innovation process.

TW: Correct. Speeding up the innovation process; so I, you know when I read that without your context I got the sense of speed, right, and I see speed a lot in business and it looks like flurry. [CK: Flurry.] It looks like panic. It looks like someone just swinging, right. Throwing punches, haymakers, jabs, not hitting a thing, but just doing everything really fast and not getting anywhere, right, and that’s why I asked you what you meant by Art of Speed because our notion of speed is really based on accuracy. We have a saying that reads, “Speed impresses, accuracy kills.” And when we relate it back to project management, its the shotgun approach [CK: Right.] of project management which most project managers do, just do everything see what sticks. Or the sniper approach, right, a sniper rifle. One shot, one kill. Now that’s accuracy, right? Now our assertion is that if you are accurate and you are consistently accurate in hitting your targets you will be much faster than if you are speedily trying to hit all your targets at once. So I think that’s the key to speed is to produce results quickly, not your end mission, but knock targets down one by one, planning empirically and getting closer and closer to your end mission and making sure you hit your targets all along the way. That’s what we think of as speed.

CK: So Tony, really, so first of all really appreciate it that you spent the time, you know available afternoon with us, Friday afternoon [TW: Yes.] in particularly and dressed up for everything. What, how should people contact you if they’re interested in your service or the training? You know if they are interested in being trained to be more effective as a project manager. How should they contact you?

TW: They have two primary means. You can contact us, you can look us up on the web at DigitalOnionInc, I-N-C, dot com. And you can find descriptions of our services, case studies. We also have a site for our Point Man system, its called BeThePointMan.com, actually those are two ways; and then the third way is you can attend the LA Project Management Meetup.

CK: Oh, nice.

TW: We are sponsors of that meet up, we organize it, and we have monthly meetings here at our offices every month and so if you want to learn about project management free of charge, no pressure, come hang out with a community of project managers, sign up for the meet up.

Transcribed by Quinn Duffy

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