There are multitudes of CEO-story books that describe how a particular head of an organization honed leadership skills through a long career. Many provide insights and lessons based on long years of CEO experience.
New technology companies have pushed “Control-Alt-Delete” on this traditional CEO trajectory. Entrepreneurial, high-tech, Silicon Valley-type companies have rapidly produced a new generation of CEOs and leaders who know they have to operate differently.
Ben Horowitz is definitely in this new group as he shares in his book, The Hard Thing About Hard Things: Building a Business When There Are No Easy Answers. He was cofounder and CEO of Opsware, formerly Loudcloud, which was purchased by Hewlett-
Packard in 2007. He is now general partner of Andreessen Horowitz, a venture capital firm investing in the next generation of technology firms. His blog has a readership of an estimated 10 million people.
He kicks off with the story of his early career as a young computer-science student who quickly takes to founding and heading up technology companies. Halfway through the
book he shifts into high gear, steering us through need-to-know essentials on running
a high-tech company. This is a blended book, part memoir and part how-to. It’s a lot of ground to cover, but Horowitz sets a rapid pace and carries it through. He opens each chapter of the book with quotes from rap songs, seeming to mimic the fast beat that is synonymous with the high-energy world of tech companies, as well as the pace he sets in his book.
Horowitz gives a compelling insider’s story of the role of company leadership needed in today’s technology companies. The first half of the book is an exceptional, anxiety-ridden story of his leadership experience — including surviving the dot.com bust and the economic turmoil following the tragedy of 9/11. At one point, Horowitz said, “With nearly 300 employees and very little cash left, I felt like I was going to die.”
Instead, he not only weathered the storm but also ended up selling the company to
Hewlett-Packard for $1.65 billion. Horowitz argues, “By far the most difficult skill I learned as CEO was the ability to manage my own psychology.”
Hiring the right team, organizational and process design are easy compared to “keeping
my mind in check,” he wrote.
The Hard Thing About Hard Things differs from many CEO leadership books in its
intended readership. While many of the ideas can be utilized at any management level, the
author addresses his writing to CEOs and top company executives. These individuals, often making billion-dollar decisions in isolation, are under unique types of stress.
CEO is an unnatural job, Horowitz says.
The assumption that CEOs are born not made is a false one. It generally takes years for the founder of a company to develop the CEO skill set. It requires “lots of unnatural motion.” For example, it’s natural to do things that make people like you. Yet to be a good CEO and liked in the long run, you may have to do things that will make them dislike you in the short run.
The author openly explores the emotional aspects of leading a company. For example, when deciding whether to sell a company, the emotional part can be schizophrenic, he said. How can you sell a company where you’ve recruited and sold every employee on your vision? Yet, how can you walk away from financial reward you’ve worked for?
Still, many of Horowitz’s creative ideas can be applied at many levels. For example,
after watching the classic movie Freaky Friday, Horowitz developed “The Freaky Friday
Management Technique.” In the movie, a mother and daughter are frustrated with each
other and wish they could switch places. Magically, this happens. In Horowitz’s application, he forced the heads of sales and customer support to switch jobs. After a week, they had a clear understanding of issues that had created conflict between the two.
It’s the same pragmatic honesty that Horowitz uses in his book. It is hard work to
run a company, he tells us. Ultimately, many decisions are made by one person: the CEO.
Only that individual has the comprehensive knowledge, the rationale and the feedback
from others. It exposes all your strengths and weaknesses.
“People always ask me, ‘What’s the secret to being a successful CEO?’” Horowitz says.
“Sadly, there is no secret, but if there is one skill that separates the women from the girls,
it’s the ability to focus and make the best move when there are no good moves.”