BC v. Silicon Valley, Pt. III

I’ve been taking more breaks from writing lately, but a particularly invigorating discussion with Perry Atwal (one of my colleagues from the Sauder MBA Program, and currently the school’s Director of Special Projects) and a separate thoughtful conversation with Kevin Cheng (my former SFU Engineering Science colleague and housemate) reminded me that I needed to revisit the “BC versus Silicon Valley” thread. I’ve already examined the benefits that population density and a networking-addicted community bestow on Silicon Valley – it seems logical now to turn to one of the results of those two elements: a propensity for thinking big.

When I lived in Ireland during 2000, I went to a lot of First Tuesday meetings to watch how people were trying to take advantage of the ‘Celtic tiger’ to make their fortunes. Unfortunately, a lot of the ideas I saw being pitched were wholesale replicas of existing (and very successful, mind you) online businesses in Silicon Valley, such as eBay. In and of itself, that’s not a bad thing – taking an idea and refining it for the local market is a valid strategy. However, the lack of barriers to entry into the Irish market for an existing Silicon Valley online business, coupled with the relatively small Irish market, doomed many of these businesses to failure. Many of these entrepreneurs just weren’t thinking very big.

For example, at one meeting I talked to one bunch of bright-eyed young entrepreneurs who were pitching a video game based on hurling. Hurling is a notoriously brutal sport that is best described as a cross between field-hockey and lacrosse – the sport is indigenous to Ireland. When I asked the students if it had crossed their mind that perhaps they were limiting themselves by choosing a game with such limited appeal, they balked, exclaiming, “Everyone loves hurling! Everybody in Ireland loves it, and nearly everyone in Ireland plays video games! Everyone in Ireland will buy our game!” Wow – everyone in Ireland? Even if they were right and everyone in Ireland did buy their game, they would still have one major problem: Ireland has a population of less than 5 million people. Once they sold the game to everyone in Ireland, they’d have no place to go.

Then again, maybe that’s all they wanted to do. They wanted to sell their 5 million units, take their money off the table, and retire. And there’s nothing wrong with that – it’s a perfectly reasonable thing for an individual entrepreneur to want to do. It’s when an entire society of entrepreneurs do the same thing that one has to be concerned.

The entrepreneurial environment in Vancouver doesn’t differ significantly from Ireland – it thinks small. It’s rare to see an entrepreneur in BC stand up and say, “Screw you world! I’m going to own this market!” Just look at Crystal Decisions – they were one of the leaders in the business intelligence space, but when Business Objects made them an offer, they rolled over, took the money, and retired. BC’s entrepreneurs are very good at taking their money off the table, quickly and permanently, and retiring in Whistler.

While cashing out is every entrepreneur’s dream, the difference between Silicon Valley and BC is that in Silicon Valley, the entrepreneur doesn’t stay out of the game very long. They dive back in, onto the next big thing, the next market to be chased. Sure, they’re in the game for the money, but they’re also there for the adventure. Adventure implies risk – big payoffs are balanced against headfirst failures. Unfortunately, BC has an overly-conservative attitude to risk and is fond of neither the possibility of big failures nor, as a result of this aversion, big payoffs. This conservative attitude immunizes it against most of the elements required to foster the ecosystem that sustains good entrepreneurs. This is a real shame because BC has otherwise a lot of characteristics that could make it a world leader in many areas – it just needs a cultural shift to make it possible. Regrettably, cultural shifts are the hardest to achieve.

Next time: Recognizing Success

Should You Do An MBA?

Every couple of months, one of my (usually techie) friends asks me for advice on an MBA. The form of the question itself varies (“Hey, what did you think of your MBA?”, or “Do you think an MBA is a worthwhile use of my time?”), but the underlying themes are the same: reassure me that this is the right, best, easiest, or most sure-fire way to get me more money, status, or success. Rather than handle these requests one-on-one, I figured I might as well post my thoughts here and save everybody some time.

(In the interest of full disclosure, I should mention that I was somewhat bitter with my own MBA program. Perhaps it had something to do with the 321% increase in fees. Or the 20% of my fees that went to pay the tuition of someone who was likely in no worse a financial position than I. Take my advice, as always, with a grain of salt.)

After a year in the workforce, I can’t say that the education provided by my MBA was especially insightful. While the program and its material certainly provide a framework for thinking about business problems (hint: everything can be expressed as a two-by-two matrix), if you’ve got a good head on your shoulders and can think in a critical fashion, then the MBA won’t hold many surprises for you. If your background is science or engineering, or you have a healthy appetite for reading and thinking, the MBA is a breeze.

That said, there are a few key things I learned in the MBA program that I will share with you:

  • Nobody can write to save their lives: It’s shocking, but most people simply can’t string together sentences in a clear, concise fashion while presenting a position on a given topic. Everybody has a weapon of choice that they wield mercilessly against the English language: run-on sentences, improper punctuation, improper capitalization, incorrect use of homophones (for example: there, their, they’re), and just plain bad grammar. My advice? Start a blog and write regularly – at least you’ll end up sounding more intelligent, even if you haven’t increased the amount of knowledge in your noggin.
  • Nobody can use a computer: Despite the fact that people my age were supposed to be the Computer Generation, I can assure you that this is simply not the case. Most of my classmates were hopeless with a computer. Nobody could use Word or Excel to their maximum potential to execute a task as easily or as quickly as possible. It does make one wonder: how much of the productivity “savings” promised by computing have been eroded by the overhead caused by operator error?
  • Most people can’t manage their time: Half the time, people in my class were running around like loons trying to get their homework done at the last minute. A little bit of planning and regular execution can go a long way. You don’t need an MBA program to learn this.
  • A significant proportion of the population can’t present to a group: Presenting is an art – it takes time to master, and regular practice. Did you know most people fear presenting more than they fear death? Sign yourself up for Toastmasters or an acting class. Half the battle is gaining self-confidence.

Looking at these weaknesses, I actually have a greater appreciation for my undergraduate engineering degree at SFU. The Engineering Science program at SFU specifically taught us how to present, how to write, how to interview, and numerous other life-skills that I don’t think most students obtain in their undergraduate degree, nevermind an MBA program. Special recognition is deserved by Steve Whitmore and Susan Stevenson for their efforts.

Despite my disappointment in my own MBA program, would I do it again?

As reluctant as I am to say it, I would have admit that even knowing what I know now about the MBA program, I would still do it again. Sure, the program doesn’t live up to its expectations. It’s certainly not the ticket to guaranteed success that it once was. But, frankly, if you’re looking to cross the chasm between one career and another (technology and business in my case), this is probably the best route. I’m not saying it’s the only route – you could always just pull yourself up by your boots and hope you get the right experience to get where you’re going – this one at least comes with a piece of paper that people can easily recognize.

That’s it, I hear you saying, a piece of paper?

Yes, if nothing more the MBA will get you a piece of paper that will allow an employer to more easily classify you when you apply for a job. You see, it’s not about being better than other applicants for a job – employers have little, if any, ability to discern between the resume of a good employee and that of a bad employee. If it comes down to you and another applicant of equal skill, and he has an MBA and you don’t, guess who gets the job? Unfortunate, but true. If you’re lucky, it’ll give you a little extra life experience, some exposure to people from other backgrounds, and some time to think about where you want to go in life once you’ve received your newly-minted MBA. And even if you’re bucking for an entrepreneurial life, an MBA is a nice backup plan to have in case your dreams of being the next Bill Gates turn sour.

On that note, it’s probably best to give some parting advice to those who still wish to pursue an MBA:

  • Know what to expect: The fact that you’re here means that you’re doing some research. That’s good. Talk to people from the MBA program you intend to attend. Try to find people from all different backgrounds to get a balanced view.
  • Prepare for a lifestyle change: Depending on the length of program, you could be in school for between fifteen and twenty-four months. That’s twenty-four months where you’ll probably put a lot of the rest of your life on hold while you attend school. Think about it. Talk about it with your spouse or significant other.
  • Understand the whole cost: People look at the price tag of a typical MBA and balk. But that’s just the beginning. Don’t forget books. And rent. And booze. And student fees. And the opportunity cost (you won’t be working, remember?). Taking the program is a serious undertaking, and you need to be prepared to carry it through. Otherwise, you’re wasting your time.
  • Understand why you want to do an MBA: I would recommend you don’t consider an MBA until you’ve got at least three or four years of work experience under your belt. You’ll need that experience to shape what you hope to achieve by taking an MBA. I would also warn against focusing on the short-term. You’re not going to step out of the MBA and be handed the CEO position. You probably won’t even know how to manage people. You’re going to be back to square one, just like when you came out of undergrad. The only way to avoid this disappointment is to have a game plan on where you want to be in five, ten, or fifteen years, and view the MBA as a minor detour on the road to your inevitable future success. If you have to, write a retirement speech to figure out where you want to go in life.
  • Do something new: When choosing a specialization in your MBA (if there is such a thing in the program you attend), try doing something with little or nothing to do with your undergraduate degree or work experience. Why pay for what you already know? If you’re a technologist, avoid IT or “e-Business” specializations. Nobody likes paying $20K just to learn HTML. This goes double for those with a commerce or business undergrad degee (in fact, those with such a degree should probably avoid the MBA altogether – nothing new to see here, move along).

And one last thing – all MBA programs are the same, as far as I’m concerned, in all regards except one: the network of alumni they offer. If there were one piece of advice I would give a prospective MBA student, it would be to heavily research the alumni network of the MBA program to which you’re applying. While the MBA programs themselves may not differ, the opportunities afforded by past graduates vary greatly and are probably the one thing that differentiate the programs and their ability to shape your future success. Choose wisely.