Saturday, August 25, 2007

Exceptional software leaders are the rule

Chapter three - from the book Secrets of Software Success

Stephan Schmbach's story -

a. Aspiring to the virtually impossible

b. Recruiting the top programmers

c. Finding the funding

d. Meeting the press

e. Internationalising almost overnight


Result? In 1998, Intershop went public on the German stock exchange Neuer Markt with an IPO valued at about $300 million.


Essential characteristics of software leaders

- must be technology visionaries

- be extreme risk takers and hope for immense returns
(note: risk = challenges taken up. They are NOT crazy. They DO NOT bet on ONE opportunity; instead, they take multiple risks that yield multiple options for success.)

They bet on multiple options to prepare for all uncertainties. Examples:

Microsoft did NOT bet on the success on the Windows PC OS only. They developed an operating system TOGETHER with IBM for a DIFFERENT operating system.

SAP prefers to ADAPT than SHAPE standards. Investing in several standards simultaneously.

- Be ready to fail, "fail quickly" than avoid mistakes
The key thing in this business is to make mistakes quickly and correct them EVEN FASTER.

- Must aim high

Flip Filipowski founded Platinum Technology, gave himself 10 years to reach a BILLION in revenues...he took ELEVEN (11).

Bill Gates took 15 (Fifteen) years to reach a billion in revenues.

Intel, Oracle and SAP took LONGER than 10 years.

"In our global survey, we found an extremely strong correlation between high aspiration level and company success. Of the successful companies, 93 percent had a CLEAR and AMBITIOUS vision, whereas only 25% of the less successful companies had that same aspiration level".

- They are builders of highly dynamic organisations

Intel Grove of Intel describes it, "You need to plan the way a fire department plans. It cannot anticipate WHERE the next fire will be, so it has to shape an energetic and efficient team that is capable of responding to the unanticipated as well as to any ordinary event".

- They build extremely flat , team based organisations

- They create a culture that attracts and retains talent

- They have TEAMS at the TOP
Many of today's start up companies - and even the software giants - are NOT led by a single leader. Rather, many companies are led by leadership TEAMS.

Examples,

Concurrent Computer Corporation - $340million business with 3,500 employees
Jim Sims - Company visionary Chairman and CEO
Toscanini - Analytical, with realistic views, firm grasp of financial figures. VP and Controller

SAP
Dietmar Hopp - Chairman - down to earth, fact-driven leadership style, with an emphasis on planning and control.

Plattner - co chairman and CEO, takes "technology visionary role".

Oracle
Larry Ellision - Oracle's public face and conveyor of its vision.
Ray Lane - Ensures Oracle delivers

- They must grow or go

- They must have the mindset to WIN the race


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