Life insurance does not seem like the sexiest of segments. Most of the major players in the industry were founded 150 years ago or more. They often develop such scale and recurring revenue streams that they can develop a bit of strategic laziness, as well. These were among the reasons why entrepreneur, Peter Colis, saw opportunity as he evaluated the life insurance industry.
Colis had a job in advertising prior to attending Stanford Business School. When he arrived in Palo Alto, he met Lingke Wang, a computer scientist who also had an entrepreneurial bent. As they scoured industries that presented opportunities, life insurance checked a lot of boxes suggesting major opportunities. Investors have agreed, as the company has a stable of A-grade venture capital firms have invested in their company, Ethos Life, including Sequoia, (see my interview with Sequoia’s lead investor in Ethos Life here), Accel, and GV, Google’s venture arm. Additionally, Jay-Z and Kevin Durant have also invested in the company.
Life insurance was attractive for two reasons. First, the product is difficult to obtain. It is time intensive, confusing, and it requires many tests to validate coverage. Second, Colis highlights that the incentives for brokers, who are paid on commission, often lead to consumers purchasing coverage that is beyond their needs and their means.
In this interview, Colis describes his entrepreneurial journey, the growth and team composition of Ethos Life, as well as his thoughts on what is next.
Peter High: You are the Co-founder and CEO of Ethos Life, a San Francisco-based company that you founded in September 2016. Your organization has caught quite a bit of momentum, especially in the investor community. Could you talk about the business and the problem that you were looking to solve when you created it?
Peter Colis: My partner Lingke Wang and I started Ethos when we were roommates at Stanford Business School. I came from a background in advertising, and Lingke came from a technical background. Originally, we got interested in a different aspect of life insurance, and we learned a great deal about it. In doing so, we came to understand that life insurance is incredibly important. More than five percent of children in the U.S. are going to lose a parent by the time they turn 18, and 70 percent of families are so unprepared that if they lose a breadwinner, they would be in total financial ruin within three months. This data implies that Americans are vastly unprepared for the loss of a breadwinner. While this is an important industry, we realized that it is executed poorly by the existing players, so we saw an opportunity to dramatically improve how it is executed with technology.
Ethos is a modern and ethical life insurance company. Unlike the traditional life insurance experiences, with Ethos, you go to our website, you fill out an application online in ten minutes, and then you are done. There are no medical exams, no blood tests, no paper applications, and no pushy agents. We launched in early 2018, we are now processing thousands of applications per month, and we look forward to continued growth.
The World Economic Forum recently concluded in Davos, Switzerland. As one scans the highlights from across the sessions, whether conversations with industry titans or presentations by government dignitaries, technology was focal.
For the second year in a row, I asked Jacob Jofe, a Vice President at Index Ventures where he focuses on the firm’s enterprise investments, to provide some thoughts on themes he found particularly poignant. He highlights two areas that have now become CEO-level topics of conversation: the rise of open source software, and the importance of observability.
Peter High: Jacob, you mentioned open source software was one of the most talked about topics at the World Economic Forum. Please explain what that was.
Jacob Jofe: At its heart, its all about people. The best developers want to use the best technology, and today, the best technology is open source. So, its adoption has become central to attracting and retaining the best engineering talent. Conversely, denying access to open source has become a serious roadblock to hiring the best talent. One of the reasons for this is, some of today’s most interesting technology is developed at companies with scarce expertise, which is then contributed to the open source domain. Example include the Tensorflow and Kubernetes projects from Google, and the Kafka project which originated at LinkedIn. Developers want to take advantage of this, which I think is a win-win for everyone. It used to be that a technology decision was buy versus build — its now download versus buy versus build.
Commvault, a global enterprise software leader in the management of data for cloud and on premises environments, today announced the appointment of Sanjay Mirchandani as President and Chief Executive Officer and member of the Board, effective immediately. Mirchandani, previously the CEO of DevOps leader Puppet, replaces retiring President and CEO Bob Hammer. Hammer has led the company for more than two decades, growing it to a $3.1 billion market cap. Also announced today was the appointment of Nick Adamo as Chairman of the Board, replacing Hammer who will remain on the Board as Chairman Emeritus; both changes will become effective April 18, 2019.
Today, Yvonne Wassenaar was named Chief Executive Officer of DevOps leader Puppet. A press release from the company noted, “Under Wassenaar’s leadership, Puppet will continue to grow its market share worldwide and expand its product portfolio to deliver on its promise of pervasive automation in an increasingly hybrid world.”
Principle 1: People
The first of the five World Class IT principles – People – focuses on the recruitment, training and retention of employees, to ensure that an IT department is staffed by top-tier talent and delivers excellent performance. This principle looks at multiple areas of assessment for a company’s IT department.
The first area is about inventorying existing skills. What do you know about your IT department’s skills base? Does your company’s IT department have people with the right skills (technical, management, business or other) for the job? In order to efficiently allocate talent or determine what skill gaps exist, companies need to understand the skills that existing employees have and document them in a manner that allows employees to assess themselves against the defined skills base, as well as determine which abilities they should build on. Subsequently, workforce planning should be aligned to the insights or findings from the skills inventory. Within your IT workforce, which skills should be prioritized when recruiting new talent? What does the direction of the company suggest in terms of IT skills that will be necessary? After understanding the existing skills base, it is essential for IT leaders to consider which skill sets will become increasingly important in the future, which skills gaps need to be filled and what abilities the broader company may value most.
However, like technology, skills can quickly become outdated. Having a structured and thoughtful recruiting approach is vital for an IT department to truly become world-class, as new talent can offer diverse skill sets or fresh perspectives, revitalize existing processes and thinking. Investing in the right people, with the right skills, early on ensures that your IT department has a strong foundational talent base.
Other aspects of the “People” principle – if executed well – will also help your IT department move towards being a world-class place to work. For instance, it is crucial to clarify roles and responsibilities for employees that have various skill sets and of different levels across the IT department, as it can make it easier for employees to succeed in their daily jobs. Moreover, clearly delineating roles and responsibilities helps mitigate redundancies in teams, reduces employee frustration and improves working relationships. In turn, this allows employee performance evaluations to be more easily conducted. Performance evaluations for employees should be prioritized by management, as well as be detailed and constructive. A streamlined, helpful evaluations process can go a long way in nurturing and retaining key talent at every level of the IT department – talent that could play a fundamental role in the future of the company.
Another area that underpins the “People” principle is employee compensation and recognition. Understanding employees’ preferences for recognition and compensation helps enhance employee satisfaction and in turn, their tenure. Additionally, across many industries, IT employees are often overlooked compared to their business counterparts, as they are approached only when technical issues arise. Recognizing and compensating high performers in appropriate ways, as well as emphasizing the relevance that IT’s work has on the business, can incentivize IT employees to go above and beyond in their roles. Career planning – which is heavily related to employee recognition and compensation – is an area which IT leaders should focus on as well. Establishing clear technical and managerial tracks through which IT employees can progress, as well as providing employees with a support structure, will give IT employees the opportunity to define their career goals and motivate them to perform better.
Furthermore, although regarded as difficult to assess, the culture and work environment within your company’s IT department can significantly impact employee happiness and the department’s overall performance. Understanding the existing culture and identifying gaps that need to be filled, followed by implementing positive cultural changes can greatly improve the perception that other business divisions have of IT, as well as facilitate closer collaboration between IT and these other divisions.
In addition to the areas mentioned above, training is vital to how new employees are introduced to the IT organization, how skills are acquired and how practices are shared more broadly. How is training currently conducted in your company’s IT department and how can it be transformed? IT leaders should consider these questions when designing or implementing training, so that training for employees that is up-to-date, engaging and flexible, thereby ensuring that IT employees – both new and existing – are equipped with the necessary skills and knowledge to succeed. Finally, as your company’s IT department continues to evolve, it is essential for IT leaders to think about what the department’s retention strategy should be. A culture of merit-based advancement can help maintain those employees that are looking to develop a career and attract new talent for a truly World Class IT department.
Principle 2: Infrastructure
Infrastructure – which consists of IT hardware, software, data, components, systems applications and the service desks supporting them – is crucial to the day-to-day operations of the IT department, as well as those of the broader company’s Not only is it imperative to have an efficient, well-managed and highly available IT infrastructure, but it is key for IT to be able to translate infrastructure-related jargon into terms that can be easily understood by IT’s business partners. As such, we assess the robustness of our clients’ IT infrastructure on several elements, which we elaborate on below.
Much like Principle 1 (People), the first element of the “Infrastructure” principle involves understanding your company’s existing IT infrastructure, by creating an infrastructure roadmap that displays various components in order of business importance. This exercise can provide the IT department with a comprehensive view of existing tools and technology, help IT understand the components for which maintenance and protection should be prioritized and enable IT leaders to determine a strategy for future investments in infrastructure. A roadmap can also help with efforts to maximize systems’ up-time — another key element of this principle. As systems up-time is directly correlated to business productivity and revenue gain/loss, IT departments should engage in root cause analysis (RCA) when encountering system issues. Moreover, IT leaders should consider the different systems’ criticality to business operations – how can up-time be maximized in a way that is resource and time-efficient? These approaches to issue resolution will allow employees to apply fixes that truly address systemic problems and minimize technical risk to the business.
Overall infrastructure health is, of course, critical to business productivity and revenue attainment as well. Regularly scheduling maintenance and upgrades for all major aspects of infrastructure is a must for any world-class IT department to optimize performance. Additionally, maintenance planning should be based on criteria such as system age, reliability and cost of replacement. This list is not exhaustive, but is a good start to monitoring the status and stability of existing infrastructure. With that, IT leaders should plan to retire and replace infrastructure when appropriate and needed. Incorporating infrastructure lifespan into the IT department’s roadmapping and budgeting process at an early stage can help IT leaders plan for, as well as acquire, replacements on schedule. In turn, this mitigates the risk of a system failure or any interruption to business activities.
Nowadays, another increasingly important element of concern is infrastructure and information security. In addition to conventional physical security practices, a growing number of companies are proactively adopting cybersecurity measures, as well as revisiting existing security practices. Legislation such as the General Data Protection Regulation (GDPR) in 2018 have heightened the sensitivity of issues such as consumer data privacy. Given the wide range of potential threats to security – such as natural disaster, network attacks, viruses, fraud, espionage, data portability etc. – it is crucial for organizations to have a designated team or individual (such as a CISO) whose responsibilities are completely security-oriented, rather than assign security as a second or lower-priority responsibility to existing management The CISO and their team should also be up to date on new security threats and trends, industry regulations or best practices, as well as factor security investments into IT’s annual budgeting and resource planning processes. However, it is worth noting that security awareness and compliance apply to every employee – not just the CISO and their team. Approaches such as socializing best practices among employees, conducting company-wide security training or hosting security simulations can help mitigate the regulatory, financial and technical risk of a security incident.
Consequently, business continuity and disaster recovery (BC/DR) is another element of infrastructure on which companies should heavily focus. Disaster recovery is the process by which business resumes after disaster (which can be both man-made or natural) has occurred, whereas business continuity is about how business resumes during other events besides disaster (e.g. leadership changes). When engaging in BC/DR planning, companies should evaluate and identify the primary business units/functions, the people affected, as well as the underlying systems, hardware and software to be prioritized in the case of unexpected scenarios. Furthermore, it may be helpful to determine the probability that certain hypothetical scenarios will occur and develop mitigation and recovery strategies based on that analysis.
Finally, IT leaders should focus on improving their service desk (or help desk). It is vital for the help desk to build credibility among its user base (i.e. employees from the rest of the company), since the help desk is often regarded as the face of IT by the rest of the company and can play a small but significant role in deepening relationships between IT and the rest of the business. True World Class IT departments will recognize this and enable their help desk to provide the best services possible, as well as leverage the help desk to boost IT’s reputation for creative solutions. For proposed ways to enhance the help desk function, please refer to the book World Class IT by our CEO, Peter High.
Principle 3: Project and Portfolio Management
Project and portfolio management is becoming more and more essential for IT departments, as the need for greater transparency continues to increase. Previously, a lot of business executives did not always understand what went into procuring, creating and maintaining technology and as such, were often reliant on the cost and time estimates provided by their IT departments. However, recent reporting regulations as well as rapid digitalization of business and commerce means that companies now need more clarity and insight into where investment in IT is going. If executed well, several components of project and portfolio management can distinguish a World Class IT department from its peers – idea generation, prioritization, budgeting, portfolio management, project management and execution, quality assurance (QA) and post-project analysis.
First, idea generation is a process that is often problematic for companies. Many companies only allow more senior staff members to generate and submit ideas for projects, or give staff a limited time window to submit their ideas. These rules often lead to ideas not being sourced from the broader employee population and cause ideas that emerge outside of the submission window to be held off until following years. Given all of these issues, companies could establish a clear governance structure, comprising several review committees of appropriate business and IT stakeholders. This approach could help align idea generation to the company’s overall strategic goals. Within the governance structure, each committee should have clearly designated roles and various levels of the company should be involved, to ensure that perspectives and feedback are representative of the broader employee base. The submission and review process for ideas should also occur more regularly, rather than once a year. Once determined, projects and portfolios should then be prioritized by the review committees. There are many ways to do this, but several criteria to be considered include: strategic fit, cost to benefit analysis, project interdependency, qualitative benefit versus change and risk analysis. For further elaboration on each of these criteria and how they affect the prioritization process, please refer to World Class IT by our CEO, Peter High.
Furthermore, budgeting can occur more easily once projects have been prioritized. By allocating funding to projects in order of priority, the IT department can set an expectation of projects that will be deferred to the next budgeting cycle. Budgets could also account for projects that may emerge later or throughout in the year, to encourage innovation within the department.
Good budgeting, in turn, helps the IT department better manage its portfolios. However, what defines good portfolio management? Several suggestions include: regular meeting cadences, establishing a program management office, effective project monitoring via dashboards and other tools and so on. When it comes to portfolio management, one key challenge that many companies face is the inability to cancel projects, as sunk costs are often used to justify continuing non-performing projects, rather than canceling them and redistributing resources to other initiatives. True World Class IT departments are unafraid to delay or cancel non-performing projects and reallocate resources to initiatives that they know will create more value in the long term. Similar to portfolio management, IT leaders can rethink their approaches to project management and execution. It is interesting to note that true World Class IT departments typically have a well-developed, well-documented project methodology or toolkit that is applicable to and can be tailored to all kinds of projects. In particular, project managers should play a dynamic role in leading and coordinating the teams for the project, monitoring milestones, etc. IT leadership can significantly encourage active and diligent project management by identifying the appropriate talent, as well as recognizing project managers for their efforts. As such, effective portfolio management, project management and execution can enable IT to maximize performance and deliver better results.
Moreover, quality assurance (QA) is often overlooked by many companies, but is critical in ensuring that any technology released by IT is high-performing, high-quality and does not require constant fixes. Some high-level suggestions for bettering QA processes include clearly defining quality gates and involving QA early on in the development lifecycle, but this list is not exhaustive. World Class IT departments have no qualms reviewing and revamping QA processes as needed and ensuring that they are consistent across portfolios and projects. Similarly, performance reporting can be done on a more regular basis to ensure that resources allocation, obstacles and milestones are all being tracked. In particular, World Class IT departments also track benefits – financial or otherwise – after projects have been completed, as such accomplishments can significantly boost IT’s credibility. Finally, post-project analysis is extremely valuable, as it provides the IT department with benchmarks and lessons learned for future project development and idea generation. All of these components combined can truly help IT become more efficient, organized and an example to follow by its business counterparts.
Principle 4: IT-Business Partnerships
Often considered the “holy grail” of an effective IT organization, IT’s strategic alignment with the rest of the business is no longer a nice-to-have, but rather a necessity in today’s digital marketplace. IT’s alignment with the rest of the organization hinges on five key components: cross-organization communication, IT-business strategic alignment, innovation, IT strategy and internal IT communication.
Beginning with communication, it is important to note that true World Class IT organizations do not solely rely on top-down messaging. Rather, top performing organizations establish information channels at every level between IT and the rest of the business. When successfully implemented, IT is simply considered “part of the team” and less of a reactionary internal service provider. Looking inward into the IT organization itself, there must be robust lines of communication underpinning IT’s role as an internal strategic advisor and enabler. Some of the biggest challenges (communication or otherwise) within IT teams stem from artificial organizational barriers and getting mired in the technical details behind a plan. While not apanacea, rotating employees through IT departments and adopting Agile-style approaches to work are two approaches that can help address poor internal IT communication challenges. Mature internal and external (to the rest of the business) communication habits are hallmarks or any true World Class IT organization.
In the midst of effective IT and Business Partnerships lies strategic alignment and innovation. Firstly, each party must have their own documented (and used) strategy to guide both daily and long term decision making. With established strategies in place IT and Business leaders can upgrade their conversations from tactical question exchanges to comprehensive collaborative sessions. IT’s role is to both follow and adjust to the direction the business is heading while providing subject matter expertise and driving decisions around technology investments made by both the Business and IT. In well functioning IT-Business Partnerships there is a healthy sense of co-dependence and trust that allows innovation to truly take root and grow. Without alignment around common goals and a sense of team innovation cannot thrive. In well functioning organizations the line (or wall) between IT is blurred and the strengths of each group underpin future success
The concept of IT-Business Partnership may sound simple, but even digitally native organizations can struggle sharing resources and ideas for the common good of the firm. Moreover, leveling the field between IT and the rest of the business should be a top priority for any IT leader serious on maturing her organization.
Principle 5: External Partnerships:
Within many organizations IT is the largest spender and consumer of 3rd-party products and services. Given this concentration of vendor spend, business leaders often lean on IT to drive bottom-line savings by cutting (or increasing) vendor spend inline with the prevailing business climate. The existential (and real) threat of budget whiplash can wear on vendor relationships and breed conflict where partnerships should thrive. The best IT organizations know and segment their vendors, they apply rigorous and fair procurement processes and manage vendor relationships on an ongoing basis. Given the rate of technological change it is unreasonable to assume that IT can deliver an organization’s entire technology needs on its own, but there needs to be a thoughtful strategy behind why work should be done outside the organization’s own four walls.
Establishing governance, process and accountability with vendors begins with adequate vendor segmentation. Segmenting (or organizing) vendors by factors such as their size, strategic importance and total spend will help shape the proper vendor relationship and drive the most value. Taking a one-size fits all approach that treats independent contractors the same as the IBMs of the world can both snuff out potential value-add from smaller contractors, while not providing proper performance controls for large managed service providers. Understanding where each vendor fits across a continuum of factors will help both the procurement process and in-life vendor management.
The best IT groups work hand in-hand with central procurement teams and often form joint or independent teams that can leverage IT’s technology expertise to vet potential suppliers. The procurement process is the time and place for rigorous and fair governance to shine. It is here that inlife performance metrics, penalties and incentives will be set. It is also the beginning of a vendor’s formal relationship with the organization and it sets the tone for the rest of the partnership.
Lastly comes in-life Vendor Management. The best IT organizations recognise this as a discrete function outside of the upfront Segmentation and Procurement processes. It is here that relationships with both key and commodity vendors are built and SLAs are monitored appropriately. This function can be dispersed across organizational subunits or IT can build its own Vendor Management Office, the key is to make sure someone is responsible for each vendor, their performance and the overall relationship. Most vendors appreciate a more hands on approach as it gives them more feedback to improve their own internal contract and service management practices. Moreover, while there should be individuals directly aligned with each vendor Vendor Management is the responsibility of everyone who works with a given vendor. By establishing and more formalize structure, individuals on the IT team are able to better raise grievances and praise and key vendor resources have one place to do the same.
As an IT organization aims to become true World Class it is important for External Partners to not be forgotten. External Partners can help IT deliver its strategic edge both internally and for the end customer. By conducting sound Segmentation, Procurement and Management practices IT will be helping set its partners (and ultimately itself) up for sustainable success.
As technology becomes increasingly integrated with business, companies are demanding better and newer technological products, or solutions, to boost business performance, facilitate smooth operations, improve product delivery and enhance the customer experience. This has also caused the role of CIO to change in recent years, from one of process-centric IT leadership and a focus on cost-cutting to developing innovative, value-creating solutions for their company. However, even today, many CIOs are not invited to sit at the table when future vision for their companies is discussed. This may be due to the perception that IT’s primary role should be to resolve issues with existing technology, rather than the view that IT can be a hub for innovation within the company. Moreover, business executives outside of IT often fail to recognize that IT must balance the priorities of all other divisions in the company, in order to come up with its own prioritization of projects. As such, there is a lot of pressure on IT to deliver solutions in a timely manner and meet business expectations. Furthermore, many companies are better at defining corporate strategy than business unit or divisional strategy, as divisional heads often focus on execution rather than planning. This means that overarching corporate goals may not be translated into divisional goals and are not executed on throughout the company.
In light of the issues above, there are several steps CIOs and/or IT leadership will need to take, to ensure that IT is regarded as a key driver in their companies. First, the CIO needs to develop a strategic vision of how IT can deliver enhanced value to the wider company, as well as lead their departments to execute on this vision. In turn, IT needs to become much more connected with the rest of the company, in order to respond to, as well as understand how changes in the competitive landscape, industry or the company’s business priorities could affect IT’s priorities. However, this is not a miniscule task for any CIO or IT leader. Where should they start?
Metis Strategy’s Strategic Translation, Alignment and Refreshment (STAR) methodology provides an integrated and cascading strategic framework that helps CIOs and IT leadership address questions surrounding IT strategy. For instance, what does IT need to do to empower and enable the execution of corporate and/or divisional strategies? What does IT need to do on its own to generate value? Additionally, what IT projects are being funded and how do they relate to the strategic goals of IT and/or the business? The STAR methodology focuses on all of these questions, while providing a mechanism to align IT’s priorities to value-driven strategic imperatives. Firstly, the methodology suggests that strategic planning and alignment begin with the development or refinement of strategic objectives at the corporate level. The next step in the methodology is to translate corporate objectives into divisional objectives. After that, detailed tactics (i.e. executable actions) are developed for each objective. Then, success measures are developed for both objectives and tactics (referred to as goals and measures, respectively) to ensure effective tracking and monitoring. This framework is referred to as the OGTM (objectives, goals, tactics and measures).
However, it is important to note that the OGTM framework is not an IT-specific strategic framework, even though in our experience, IT strategy has proven to be an excellent use case for it. In fact, the OGTM framework can be applied beyond IT, to other aspects of a company. For instance, OGTMs that are created at the CEO level can be cascaded to, or linked with OGTMs at the divisional level, thereby ensuring that corporate strategy is baked into the entire organization’s strategic planning and executed on in a holistic manner. The methodology also proposes that separately, all of the company’s business and IT projects should be evaluated based on standardized criteria. Next, projects can be grouped into portfolios that are aligned to the corporate and divisional objectives that were identified by OGTM. Finally, portfolios can be prioritized across the organization for budget, resource allocation and decision-making.
Consequently, Metis Strategy’s STAR methodology can better position IT leadership and their departments to become better integrated with the rest of their organization, as well as take on a more influential role in driving company strategy. For both business and IT executives, the STAR methodology can provide a comprehensive and logical framework to address challenges around project and portfolio management, prioritization and resource allocation. Lastly, our STAR methodology assessment is designed so that it can and should be performed on a company multiple times, to ensure that as corporate objectives evolve, divisional objectives, goals, tactics, measures, and projects can be refreshed as well.
Metis Strategy has conducted STAR methodology assessments for clients across a wide variety of maturity levels and industries. For a sample case study on the assessment, please refer to www.metisstrategy.com/what-we-do. For further inquiries, please refer to Implementing World Class IT Strategy by Peter High.
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12/18/2018
By Peter High. Published in Forbes.
Matt Harris has been investing in FinTech companies since before the term was coined. He was initially drawn to the field partially due to the lack of attention it was getting 20 years ago. As he notes, “In the beginning, the incumbents ignored the startups because they thought they were insignificant, and then once the financial crisis hit, they ignored them because they had far bigger problems to deal with.” This was to his advantage.
Now, with a great number of winning investments to his credit, Harris has developed deep perspectives in and made investments to follow those insights into the core four segments of FinTech are payments, lending, investing, and insurance. He also argues in this this interview that real estate is worthy for consideration as a fifth segment. This interview is a remarkable overview of FinTech.
(To listen to an unabridged podcast version of this interview, please click this link. This is the 30th interview in the Tech Influencers series. To listen to past interviews with the likes of former Mexican President Vicente Fox, Sal Khan, Sebastian Thrun, Steve Case, Craig Newmark, Stewart Butterfield, and Meg Whitman, please visit this link. To read future articles in this series, please follow me on on Twitter @PeterAHigh.)
Peter High: You are a Managing Director at Bain Capital Ventures where your area of focus is Financial Technology [FinTech]. Could you define some of the discrete segments that have emerged in FinTech?
Matt Harris: While I had invested in FinTech companies since before the early 2000s, it did not become my sole focus until roughly 17 years ago. At the time, there were not many VC firms that were similarly focused exclusively on FinTech, so I saw an opportunity to get involved. Back then, FinTech was mostly around vendors and about companies’ ability to build technology and sell it to financial services organizations. I called the buyers the incumbents, which were the existing banks, broker-dealers, and insurance carriers. From my view, these companies typically preferred to buy technology from other large organizations, such as Fiserv, FIS, Jack Henry, Accenture, and IBM. Because of this, the opportunity to build new vendors to help the incumbents be more successful was not there.
To read the full article, please visit Forbes
12/17/2018
By Peter High. Published on Forbes.
Matt Harris has been investing in FinTech companies since before the term was coined. He was initially drawn to the field partially due to the lack of attention it was getting 20 years ago. I recently caught up with him, and we covered the core four segments of FinTech: payments, lending, investing, and insurance. (He also argues in this this interview that real estate is worthy for consideration as a fifth segment.) The broader interview will be published shortly. Of interest in this segment of our interview was his contrarian perspective on blockchain. He is an investor in crypto-currencies, which he personally invests in, and shares the reasons why he believes blockchain is a hammer in search of nails.
Peter High: You are on the investment committee of a digital currency group, which you have referred to as a firm that provides a front-row seat to cryptocurrencies and blockchain. Cryptocurrencies, specifically Bitcoin, have been in the news quite a bit over the past few years as fortunes have been made and lost because of cryptocurrencies’ extraordinary volatility. What is your thought process on the evolution of cryptocurrencies, and how bullish are you in that space?
Matt Harris: I have been referred to as a Bitcoin maximalist because as it relates to crypto assets, I tend to be dramatically more bullish on Bitcoin than any of the other currencies or assets that have been developed. While I believe fixing prices is all inherently speculative, I get the use case for Bitcoin, and I have spent hundreds of hours speaking to owners of Bitcoin. While there are unfortunately no users of Bitcoin, the owners of Bitcoin tend to believe in it the same way people have believed in gold as a store of value for millennia. This store of value is not necessarily seen as stable on a short-term basis, but it is seen as a store of value that is divorced from the whims of governments and the inflationary tendencies of fiat currencies. It is instinct, rather than universal. Similar to many people, I have never owned gold in my life, but roughly five percent of people with means end up owning gold, and they view it as a hedge against inflation and chaos. For this new generation of mostly young people, the idea that gold has inherent value makes little sense. Frankly, other than the fact that gold has been valued that way for hundreds of years, there is no inherent logic in gold being valuable, so Bitcoin is far more appealing to this demographic.
To read the full article, please visit Forbes.
12/10/2018
It has been eight and a half years since General Stanley McChrystal retired from the United States Army. Since then, he has been busy. He has built a thriving consulting firm, The McChrystal Group, which focuses on leadership consulting. He has lectured at Yale University. He has spoken at conferences around the world, and he has written three books, including the best seller, Team of Teams: New Rules of Engagement for a Complex World.
His most recent book is Leaders: Myth and Reality. General McChrystal and his co-authors, Jeff Eggers and Jay Mangone, explore a variety of different genres of leaders from geniuses, founders, politicians, reformers, heroes, and zealots. While he asserts that a group’s performance is less about the leaders ability and more about the surrounding factors, General McChrystal claims that the best leaders are those who are empathetic to the group’s position at a given time and are able to constantly adapt. Throughout our conversation, we also discuss General McChrystal’s evolving opinions on Robert E. Lee, his experience with his nemesis in Al Qaeda Abu Musab al-Zarqawi, and why he dedicated his book to John McCain and John Lewis.
(To listen to an unabridged podcast version of this article, please visit this link. To read future stories like this one, please follow me on Twitter @PeterAHigh.)
12/03/2018
In 2017, John Chambers retired from Cisco Systems, a company he had run for more than two decades. During his time with the company, it had grown from $70 million in annual revenue to $47 billion. Once he retired, he had a chance to reflect on his career, as well as to plot his next move. The former led to his authoring a new book Connecting The Dots: Lessons For Leadership In A Startup World. The latter would have him starting his own venture capital firm, JC2 Ventures.
Chambers now offers capital and advice for start-ups who wish to follow the path toward the scale and the success that he achieved. He also has become an advisor to heads of states, as he consults to both India’s Prime Minister Narendra Modi and to France’s President Emmanuel Macron.
As Chambers contemplates where his success comes from, he returns to his roots in West Virginia. Born the son of two physicians, he was taught to value education from a young age. Chambers is a dyslexic, a detail that he kept hidden until well after he had ascended the CEO role at Cisco Systems. Through help from caring educators in his youth, he learned to turn his weakness into a strength. He now tells everyone about his dyslexia to inspire other dyslexics, but also to inspire anyone who feels they have an impediment that is holding them back. His refusal to let a weakness define him was, itself, a key to his success. He notes, “We all have setbacks, and your character is more of a product of how you handle these setbacks than your successes are.”
Chambers’ aims to help his home state and others learn the key lessons of Silicon Valley, and imitate the dramatic change that has transpired in France, a country he once vowed not to do business in due to its antiquated and often bureaucratic business practices. He hopes that the same combination of good government and ambitious entrepreneurs may lead to positive change in West Virginia and beyond. We cover all of this and more in this interview.
(To listen to an unabridged podcast version of this interview, please click this link. This is the 29th interview in the IT Influencers series. To listen to past interviews with the likes of former Mexican President Vicente Fox, Sal Khan, Sebastian Thrun, Steve Case, Craig Newmark, Stewart Butterfield, and Meg Whitman, please visit this link. To read future articles in the series, please follow me on Twitter @PeterAHigh.)
Peter High: You began your terrific book, Connecting The Dots: Lessons For Leadership In A Startup World, by discussing your roots in West Virginia. Could you reflect on the lessons you learned from your youth?
