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Why The Community CEO Does Work by Jason Calacanis
Editor's Note: Last week I wrote a column titled, "Why the Community CEO Doesn't work". Jason Calacanis, Mahalo CEO had a lengthy reply on why it does work and since many of you are on the feed, I decided to turn his comment into a post as his comment is a good rebuttal to my column. I've stripped some of the pieces directed towards me for clarity.
Jason's comment begins:
Allen, I think you're wrong. I'll give you some more reasons.
First off, I can tell you that being open and transparent worked really well for us at Weblogs, Inc. and that business went VERY well as you know.
Mahalo has been doing amazing and the feedback we have from the public has really helped shape the product. We do this in many different ways every day and my open door policy is but ONE of our open techniques.
1. We have lunch four days a week with our ENTIRE team at Mahalo. That's 50 people around one huge lunch table--it's crazy. You should stop by some time when you're in Los Angeles.
2. I accept every friend on every service.... and talk to them!
3. I answer every email, IM, skype, etc. I can... it's up to about 300-500 a day right now. It takes me two hours a day to do this!
4. We ask questions on various services like LinkedIn and Facebook.
5. We blog.
6. We read and respond to people's blogs when they comment about us.
7. When I do interviews with the press and they ask questions I frequently ask the press "what would you do if you ran Mahalo?" or "Who do you think we're competing with?" or "What do you think our biggest challenge will be?"
Look at our relationship.
You've got valid ideas and they should be heard... I know that. What other CEO has given you so much of their time? If I didn't you wouldn't have written, what, like 10 posts on Mahalo? You've done so much free consulting and marketing for Mahalo I think I'm going to send you business cards!!! I love you for it, although sometimes I hate the way you say things. Try and be nice Allen. :)
Now, when I post to LinkedIn or Facebook questions I have a fairly good idea of the answers I'm going to get. In fact, I'd say 80% of the ideas are simply confirming. I've been doing this startup thing for a while now... I know what the right answers are most of the time. However, I like to start discussions and see where they lead.
These discussions do a number of things:
1. You get confirmation of good and bad ideas.
2. You get people engaged in your business concept. Again, look in the mirror. You could write a book on Mahalo! You know almost everything about our company. What company do you know more about than Mahalo?!? Exactly. You're engaged and so are hundreds--if not thousands--of other leading minds. You're wondering "will this work?" That's all i need... your attention.
3. You get ideas that you might not have thought about.
Do you really see openness as some sort of sign of weakness... I don't. I see it as the ultimate strength. I'm not some God who is all knowing. In fact, my biggest strength as an entrepreneur is that I know i don't have all the answers. I know that there are better ideas outside of my head then in it... that's just the law of numbers. So, I go find places where people can debate those ideas and try and nurture the discussion around them.
You're thinking very CEO 1.0... the all-powerful God-like CEO. That's over with the exception of Steve Jobs who is, in fact, a God.











Allen,
I am glad you ran this as a separate post. I think Mahalo is doing a great job of getting attention and seeking feedback. Feedback is most important to improving a product and it does not mean the CEO is clueless. Instead it shows that CEO is dedicated to consistent product improvement and helps further reinforce the trust that the team has in the CEOs leadership!
Sameer
ProProfs.com
I think it's important to separate "attention" from "feedback" - in Jason's case these are two different things.
I am NOT saying a CEO shouldn't solicit feedback - I agree that it's crucial, but there is a difference. Check out what Wesabe is doing for a good example of a CEO asking for feedback.
You're a smart guy... but you got this one wrong... and i think you're man enough to admit that... which is why i love you. :-)
I posted a follow up to the follow up at www.calacanis.com
Don't worry, I will have a reply to your comments (now post). I really like how you try to jab me whenever you can - it's fun, it's a good Bay Ridge trait.
I stand firm that there is a difference between asking for feedback and waving a white flag that says, "I have no idea how to lead this company so you tell me please". Perhaps my title was wrong.
And of course you leave out that feeding the staff lunch helps you keep them on the clock instead of going out for a break - don't worry, this is something that has become mainstream these days.
Allen: I see your point however not sure why you perceive the feedback question you pointed out as waving a white flag that says, "I have no idea how to lead this company so you tell me please". The questions:
- "How would you get Mahalo Daily to 250k daily viewers?"
- "What would you do as Mahalo CEO?"
are not the same as:
- "I dont know how to grow this to 250K viewers. Please help me!"
- " Tell what what I should do as CEO"
I think they are questions that can help get some awesome feedback flowing. Mahalo is a product that is the very fast moving space and needs to evolve quickly. Though I have to admit I dont use it however the only reason I feel it *may* do well is cos they are seeking feedback and consistently improving.
While I agree that "What would you do as Mahalo CEO?" is not the best question to ask, however it is likely to get more enthusiastic response than "Tell us ways you would improve Mahalo" which sounds a very boring question.
You guys should get married already :p
Darren - he is SO not my type - LOL j/k
I am into female bloggers :)
lol, Allen thats why your not married, maybe you should expand to video bloggers too :p
White flag? I don't own one. :-)
Seriously, my plans for what Mahalo will be will take 3-5 years to realize... so, I could very easily just shut down my blog, twitter, linkedin, and Facebook and build. However, it's much more interesting and beneficial to have folks engaged in the product design.
It's frankly boring to just build a product in isolation. I'm not asking for feedback because I don't know what to do, I'm asking because it's smart for the reasons I outlined.
j
I think you're very wrong on this one, Allen. I'd be willing to bet that if you asked 100 people who've actually been in startups to read both of these posts, 90 would disagree with you.
I've been involved with 3 startups (one I sold as a founder, one I worked at as an employee, and my current effort just got funded) I've learned amazing things from users. As Jason says, the more you build software the more you accumulate instincts that are probably right... But there's still plenty of room to be wrong.
By engaging people on a strategic and tactical level, Jason is encouraging a sense of ownership in Mahalo. Customers feel heard, feel loved (Jason is apparantly FULL of love), and Jason gets valuable feedback from the people outside the "echo chamber".
Decision making can be consultative or collaborative. Jason isn't ceding control of decision making-- he's just collecting opinions and then presumably making decisions (which may or may not always match with the majority opinion).
There are too many damn CEOs who go about their days with the attitude of "I am the expert, I know what's best-- shut up and let me decide". Napoleon taught the world that a general is more effective with a staff-- Jason is leveraging technology to harness a staff of thousands. Kudos to him!
Finally, I am downright amazed that you think that people won't have faith in a leader who asks for outside opinions.
Allen, I am going to have to side with Jason on this one whole heartedly. Jason's methods are personable, they make him seem attainable or "on the level" of the average human being. Most CEOs don't get involved on a personal level to the extent that Jason does. Perhaps they see this as a weakness like you yourself do. Most CEOs hire a PR Consultant to respond with carefully written talking-points to any and every inquiry. Jason is real and people embrace him and his ideals because they feel that in someway they can associate themselves with him.
Why can't more CEOs be like Jason?
I give Jason an awful lot of shit, but after reading this post, I kinda like his attitude.
My only question is, with all that responding and networking, when does he have time to run his company?
------
Sincerely,
The Mentally Retired mad scientist behind the WackyLabs LLC movement.
Folks with much more experience in the start-up / entrepreneurial arena than I have already spoken up about the importance and validity of asking your users and peers for feedback. I want to mention another side of this approach.
There are aspects of Jason's style running Mahalo that mesh with my own beliefs, what I refer to as my interpretation of the D.I.Y. (do it yourself) ethic. Specifically:
Though I don't think Jason thinks of these things as part of the DIY ethic, and he and I have never discussed it directly, the fact that he opens the door to feedback, discussion, and input from his employees and from our users is one of the reasons I work for Mahalo.com.
These days, openness and accessibility on the web is not a weakness, or a sign of uncertainty. It's a sign of mutual trust, and an acknowledgment of the interdependence between company and user... user and user... peers. I'm always a little turned off when a Web 2.0 company takes the "walled garden" tack, no matter how much I might enjoy their service otherwise, and I feel the same way when people running companies shut themselves away, too.
Despite the assumed "cewebrity" status of someone like Jason Calacanis, and the playful willingness with which he adopts this role, I believe he gets that there's really no room for anyone on the web to truly believe it of themselves or anyone else.
Jimmy, in the comments, asked "with all that responding and networking, when does he have time to run his company?"
I submit that responding to feedback, networking with users, and engaging everyone with an interest in what Mahalo.com is doing... that is a huge part of running this or any other company. If Jason wasn't spending so much time on this, I'd be concerned.
Full disclosure: I am one of the Community Managers of the Mahalo Greenhouse. I've been with the company since April of 2007.
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