Reflections on 2013 and resolutions for 2014
It’s been a good year
2014 has began well. Partly because I was skiing with my family as I usually do in the beautiful alps. The fresh air and the mountain always helps me self-reflect and think more. Without a shadow of doubt that one week skiing may be the most productive of my entire year. And whilst I always push myself to self-reflect that time of year – and this year in particular- is the deepest and most meaningful retrospection of all.
As I reflected on the past year I realized how much had actually happened. We started the year on steroids, the typical ‘go go’ top line investor fuelled growth mode. We operated on vanity metrics instead of sanity metrics. We were fat and over-bloated. We were management heavy and inefficient. We were shooting for the stars and developed tunnel vision.
And then something painful but retrospectively lucky happened. The investor appetite changed, some of the assumptions, promises and myths came out sour. Some hidden realities came out of the wash. The froth came off the cappuccino.
I’ve said time and time again that the true test in life is what one does when that happens. In our case I’m proud to say that we just picked ourselves up, implemented some drastic changes, got real and elevated sanity above vanity.
It wasn’t easy. We had to let go of team members, change plans and direction, scrap a lot of things that had emotional equity built in, and especially for the guy at the top who gets the shit from both ends – investors on one and team on other – I can tell you I had more than a few sleepless nights.
But we pulled through. We turned the business into cash-flow positive, we became leaner and meaner, the people staying over being part of the earlier hires who had more dedication and passion about who we are and what we stand for. Who share our sense of purpose.
We made drastic changes like moving from two split locations to one, which meant making our support team in London redundant. We dropped a few balls in the process with some metrics temporarily dipping but overall we came out a winner. Our costs overall halved and our revenue trebled in the year.
For this I am most grateful to the team that’s left over. They are warriors, with heart, passion and dedication. To reward them I doubled the stock pool and allocated a much bigger chunk of equity to the team that stayed for the fight. Some of the more senior management voluntarily took salary cuts in exchange for more stock.
The difference I’ve seen in mindset and perceptions is that from night and day. Its almost a different company now. Before I had employees. Now I have partners. Co-owners. And I push them to look at me more as a peer than a boss.
But good is the enemy of great !
Yet with all of that, I was still troubled at the end of the year. I had a niggling piece of the puzzle missing somewhere. I felt we did good but not great. continue reading »