Navigating The Labyrinth From Research to Commercialization: Of Cults and

Leadership

Richard LeBlanc

Leader | Entrepreneur | Mentor | Investor

TODAY’S AGENDA

STATEMENT: Research & commercialization are startups

QUESTION: Why does research have a poor commercialization track record?

HINT: Successful startups build a cult with mafioso rules

Leadership skill set and tools

Do small things really well - world class preferably

ENTREPRENEURS ARE ARTISTS

https://www.youtube.com/watch?v=r51eQ2vPZSs

CONTRARIANISM – DON’T COPY, COMPOSE AN ORIGINAL

CONTRIANISM (IT ISN’T FOR EVERYONE)

Nietzsche: “Madness is rare in individuals, but in groups, parties, nations and ages it is the rule.”

Step 1 = question what we know to be true

Step 2 = find a most contrarian truth

Step 3 = build a cult around that truth

3 effective steps for dealing with

…evolving, uncomfortable reality vs. a stable fantasy…

STARTUP THINKING SHAPES HUMANITY

Vast majority of new tech comes from startups. Jobs, GDP, wealth, social / political outcomes too.

All great world bettering accomplishments came from:

Small groups of people

Bounded fanatically by a common sense of mission

What is a startup? (insert your definition _______)

STARTUP THINKING - PEOPLE

Startup = largest group of people you can convince of a plan to build a different future

Negative contributors to success BigOrg very hard to develop new things

Risk averse, slow, metrics about activity, invested

Solo even harder – cannot create an industry

Positive contributors to startup success #1 strength is new thinking – nimble space to think

Question received wisdom, rethink from scratch

THINKING = BUILDING NEW MENTAL CAPITAL

People + Leadership = Mental Capital Mental capital is the most valuable asset you can ever construct And it doesn’t even show up as an entry on a balance sheet What mental capital is missing from your opportunity in order to advance? 5KH

BIG ORG + MENTAL CAPITAL

People + Leadership = Mental Capital Mental capital is the most valuable asset you can ever construct Asset allocation = CEO differentiator Not taught in MBA schools Big problem… not thinking differently

DESIGN THE FUTURE – FROM BEGINNING TEAM

Founding matrimony – date first

Ownership vs Possession vs Control

Board of 3-5-7-9, excess of advisors

Align everything to LTV

60% cash, balance of hurdle bonus + performance vesting equity

CEO has lowest salary, but huge upside

BUILD A CULT / MAFIA

Company IS a culture, not has one (existential not possessive)

Mission is manifested in the culture - oxygen

Hire talented people you like, no passengers

Hire on mission and team, nothing else

Each hire = 1 unique thing – no competition or overlap

Startups rot from inside – bad foundation can’t be fixed

Fanaticism about something unique not employment agency

Before the startup ID first 5 key hires (5KH)

SPECIAL FORCES ONLY - SHACKLETON RECRUITMENT AD

CULTISH MANTRAS – PEOPLE CHANTS

Wendy's: "Healthy fast food" Nike: "Authentic athletic performance" Walt Disney: “Happiest Place on Earth“ Southwest Airlines: “Lowest cost airline” Federal Express: “Peace of mind” http://guykawasaki.com/mantras_versus_/

WHY BUILD AN INTERNAL MANTRA?

Mission statements don’t cut it McKinsey + MBAs

Must be real (based on core mission) not made up words

When seas get rough (and they will)…clarity on alignment of purpose in 2 ways

What next discretionary action adds VALUE?

What next discretionary action adds NOISE?

PART 2 - LEADERSHIP SKILLS AND TOOLS

Mission statements don’t cut it McKinsey + MBAs

Must be real (based on core mission) not made up words

When seas get rough (and they will)…clarity on alignment of purpose in 2 ways

What next discretionary action adds VALUE?

What next discretionary action adds NOISE?

WHY THIS…?

My vision/dream for you:

Become the best CEO / leader

Surround yourself with the best cult (board, advisors + employees)

Use tools safely to maximal impact

Achieve your goals and dream!

SIX POINT PLAN

POINT ONE: YOU AS LEADER

POINT TWO: SELECTING YOUR TEAM

POINT THREE: WORKING WITH YOUR TEAM

POINT FOUR: SELECTING ADVISORS

POINT FIVE: WORKING WITH ADVISORS

POINT SIX: NETWORKING

YOU THE LEADER

POINT ONE: YOU AS LEADER

POINT TWO: SELECTING YOUR TEAM

POINT THREE: WORKING WITH YOUR TEAM

POINT FOUR: SELECTING ADVISORS

POINT FIVE: WORKING WITH ADVISORS

POINT SIX: NETWORKING

THE LEADERSHIP SKILL SET – 16 SKILLS

Leadership is Art + Science

Leader As “Technician” (3) Leader As “Engager” (8) Leader As “Artist / Composer / Navigator” (5)

LEADER AS TECHNICIAN

Enables Business to Thrive

1. Finance, Cash Flow, Budgeting

2. Logistics and Operations

3. Understanding the Economic Underpinnings

LEADER AS ENGAGER

Internal + External Dialogues to Shape Perceptions 4. Negotiation 5. Communication 6. Media relation 7. Dealing with personnel and labour issues 8. Analysis and policy-making 9. Chairing meetings and briefings 10. Performance review / measurement 11. Public speaking

LEADER AS ARTIST / COMPOSER / NAVIGATOR

Assimilates Skills into a Repeatable Template

12. Balance

13. Vision 14. Judgement

15. Leadership

16. Authenticity (>Integrity)

SELECTING YOUR TEAM

Select For Authenticity First

Intellect Second

Passion Third

You can always teach or hire the skills

Trust in your team BUT verify [always] - David Sokol

SELECTING YOUR TEAM

Special Forces only for startups

Exceptionalism matters

Zero room for error

BUILD A GREAT FOUNDATION… or fail

WORKING WITH YOUR TEAM

Select For Authenticity First

Intellect Second

Passion Third

You can always teach the skills Use leadership style tests and personality assessments

SPECIAL FORCES ONLY FOR STARTUPS = NO ROOM FOR ERROR = GREAT FOUNDATION

WORKING WITH YOUR TEAM

Three tools you can use:

1. BIG 8 TEAMWORK TRAPS 2. T-BAR 3. ATTILLA THE HUN 4. MICROSCOPIC TRUTH

WORKING WITH YOUR TEAM

BIG 8 TEAMWORK TRAPS:

DO I GIVE OR TAKE? Give first DEADLINES = Commitments SECONDARY (hidden) AGENDA PROCRASTINATION (cover) SPEAK UP TOO LATE – giddy up WIDE SCREEN – see 7 valleys over SWIRL – no drama DO I SUPPORT? Invest in investable, cull others

WORKING WITH YOUR TEAM

THE “T-BAR” Tool

A way to check in on any issue at any time on any level of significance Produces unavoidable conclusion Produces the real issue Cannot be faked

T-BAR TOOL IN ACTION

My Perception of my Top 5 Goals for Q1

Your Perception of my Top 5 Goals for Q1?

One for you One for your boss / leader / colleague

WORKING WITH YOUR TEAM

WHAT ATTILA THE HUN SAYS ABOUT:

Risk taking and working without all the facts Promising only what you can deliver and commit to delivering what you promise Lucky breaks Leaders disease Self-inflicted wounds ………and many other topics!

WORKING WITH YOUR TEAM

We never addressed the real issue, never came to terms with reality” OR “we never stated our needs or told each other what we were really thinking”

Microscopic Truth Method

Two General Ways Fierce Conversations – good and intense

Fireside Chats – good and casual

WORKING WITH YOUR TEAM

7 Principles of Fierce Conversations

Master the courage to interrogate reality Make it real Be here, prepared to be nowhere else Tackle your toughest challenge today Obey your instincts Take responsibility for your emotional wake Let silence do the heavy lifting

SELECTING ADVISORS

Advisory Board Group of independent people that bring business management acumen, sector and issue expertise to help coach the management of a company.

Companies with Advisory Boards (BDC Study) Annual Sales +24% Sales per Employee +18%

SELECTING ADVISORS

First develop a Personal Advisory Board (PAB)

THEN a Board of Advisors!

Define needed skill set first:

marketing finance

technology negotiator

strategist other?

SELECTING ADVISORS

Short list 3 for each skill set

Define the top candidates IN THE WORLD!

Don’t settle for second best

Don’t be too humble

INTERVIEW!

Calculate how FAR they can journey with you (baton race)

WORKING WITH ADVISORS

Certain classics have strong content to consider:

Sun Tzu “The Art of War”

Machiavelli “The Prince” (Virtù + Fortuna)

Virtù is what you can control / achieve great things by bravery, civic humanism, strength and ruthlessness.

Fortuna is luck + what you cannot control (others)

ADAPTATION = SURVIVAL OF FITTEST

NETWORKING

The lost art of networking

Improving the yield from networking

Getting to key people at trade shows or conferences

Self-made woman is a baseless myth

People help people, relationships create success, wealth and durability

Networking is dangerous – beware!

THE FINAL TURN

Doing the Small Things Well

Strategic vs Operational Leadership

The SAS

STRATEGIC LEADERSHIP

Leading organizational change

Creating sustainable value for all stakeholders

Analyzing and navigating market ecosystems

Designing and building agile companies

Business model discovery, design and innovation

DO NOW

OPERATIONAL LEADERSHIP

Building excellence in the innovation

Creating customer devotion and retention

Executing with speed, quality, and efficiency (TQM et al)

Strategic partnerships to carry freight

Post-merger integration

DO LATER

CULTURE MATTERS

The Only Truly Sustainable Competitive Advantage is Corporate Culture - George Brandt (Forbes Magazine)

Entrepreneurial culture needs three components:

Mindsets - achievement, individualism, control, focus and optimism

Motivations - self-efficacy, cognitive motivation and tolerance for ambiguity.

Behaviours - confidence, interpersonal skills, social capital and risk tolerance

Nothing happens without the right kind of LEADER + a united CULT

SAS LEADERSHIP

Leader grasp self

Leader grasp team

Team grasp task

DID I DELIVER?

Did I have a grasp of myself?

Did I grasp you (the “team”)?

Can you better grasp the tasks ahead?