Thursday, October 30, 2008

John Doerr's Top 10 (or so) List

Forbes.com

By Elizabeth Corcoran 10.30.08, 9:09 AM ET

Burlingame, Calif. -

'Tis the season of fear and inspiration in Silicon Valley.

Earlier this month, leading venture investing firm Sequoia Capital shocked Silicon Valley by blasting its entrepreneurs with a slide show featuring a slaughtered pig and a dead clear message: the fun and games are over. The slides were almost instantly shared throughout the Valley.

Then, Oct. 28, other leading Silicon Valley investors, including the oracle John Doerr of Kleiner Perkins Byers and Caufield, offered tempered cautions--along with a twist of optimism. "The world has really changed," Doerr said, noting that public equities have plunged by 40% in the past month. But the epicenter of this crisis is not the technology world.

"We have a crisis of confidence--in government, in our money," said Doerr.

In the spirit of putting a calm hand on the start-up tiller, Doerr compiled 10 or so ideas for keeping businesses healthy during a downturn.

He presented the ideas at a forum convened by VentureBeat. Joining Doerr on stage were investors Ram Shriram, an early investor in Google; Matt Cohler, formerly at Facebook and now with Benchmark Capitol; Kittu Kolluri, a partner at New Enterprise Associates; and Ron Conway, a prolific early-stage investor.

Many of Doerr's principles amount to a head-clearing dose of common sense after a time of unbridled market enthusiasm. Act with speed, Doerr urged. Use a scalpel--not an ax--to protect a company's key assets. Have 18 months of cash--or more--available. Put off spending on capital equipment or facilities. (Google's online documents and spreadsheets are saving customers money, he noted.)

Reprioritize your research and development. Recognize that everything is negotiable, including big contracts such as your lease. Everyone in a company--from the receptionist to the engineers--should be selling your products. Offer equity instead of cash to anyone, from the landlord to other creditors.

Put your own cash into "safe" places. Doerr noted that he's been nudging firms to put money into Treasury-backed securities. Identify "leading indicators" that can give you a sense of how your business is going. And "overcommunicate" with your shareholders and employees about how the market and company are doing.

The other panelists chimed in: Avoid long-term spending commitments, urged Cohler. Renegotiate your building's lease, Conway reiterated. Use equity, not cash, added Shiriam. NEA's Kolluri said he expects to see consumers flock to brands they trust.

Conway added that the companies he's supporting have tightened their spending. In the year 2000, the average burn rate for one of Conway's investments was $750,000 a month. Now his portfolio companies have trimmed their costs to a svelte $200,000 monthly, he asserts.

And he still sees the same number of proposals from entrepreneurs that he did six months ago. "There's a lot of cash and a lot of great ideas out there," concurred Conway. "Innovation isn't slowing."

http://www.forbes.com/2008/10/30/investors-doerr-sequoia-tech-personal-cx_ec_1030doerr.html

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Wednesday, October 29, 2008

Egg-Citing Votes

Forbes.com

By Elizabeth Corcoran
October 29, 2008
Forbes.com
The votes in the Forbes-Instructables contest are in! And the winner is...



Burlingame, Calif. -

Even the Czar would have been pleased.

Forbes.com and Instructables received a bounty of 89 fabulous designs in our recent contest to build a Fabergé-styled egg. The possibilities were awe-inspiring. The winner was breathtaking.

First a note on our contest: Open to all comers, we asked only that you channel the master craftsman Peter Carl Fabergé for your inspiration. The original collection of 89 entries was stunning. (See "Egg-citing Fabergé-Like Inventions.")

In Pictures: When The Egg Comes Before The Chicken

In Pictures: Egg-Citing Winners

Everyone was encouraged to help us narrow down the contestants to 20 finalists by voting online. Among the finalists: a wedding cake topper made in an egg, complete with bride and groom figurines; a large Rhea egg covered with tiny pearls and crystals; a wasp and grass resin egg on a rose stand; a Star Wars themed egg; and even an "electric ovaloid," because, as its designer warned, "In the future, the chickens are all dead." (For the full collection, click here.)

Fabergé was famous for including a "surprise" inside each of his eggs. Finalist Nicolás Jara, 23, based in Santiago, Chile, lived up to that challenge admirably with his very first egg creation, a tiny globe nestled inside a chicken egg. He shared with us the secrets of his egg design.

We turned the task of making the final excruciating choices to an elite team, which included Forbes Vice Chairman Christopher Forbes (co-author of Fabergé: The Forbes Collection), Forbes Curatorial Chief Margaret Trombly Kelly, Forbes art director and jewelry designer Ronda Kass and savvy eggheads from the Instructables team. The five runners-up will receive a copy of Toby Faber's new book, Fabergé's Eggs: The Extraordinary Story of the Masterpieces that Outlived an Empire.

Much like the original Fabergé eggs, every one of these eggs has a delightful story. For instance, runner-up Brian K. Baity, a trained metrologist, was inspired by his love of antique woodwork and statuary to carve an intricate lattice design in an emu egg using paragraving tools.

"The most difficult part of this carving is removing the dark outer layers while keeping the 1/32-inch white layer intact," reports Baity, who has created fewer than 40 pieces.

Meilie Moy-Hodnett also loves working with wood. "I imagined an egg filled with amber, containing extinct life forms in the natural voids of the Banksia pod," writes Moy-Hodnett. The truly heart-stopping moment: When a sander pulled the egg from her grip and it bounced across a concrete floor. Thankfully, all was safe. The egg and base are designed to adorn a cane shaft, as she believes good art should be functional as well as promote expression.

Anna Yudovin, a computer programmer who lives in Winchester, Va., created a world inside an emu egg, using reindeer moss, twigs and other materials. She first spotted reindeer moss around the time the Fabergé contest was launched. "I was fascinated by its resemblance to an aerial view of a forest--trees by a still lake," she writes, and so "hatched the idea of nesting a miniature world inside an egg." This was the first diorama and the first egg Yudovin had ever tried to make. Along with learning as she was making her egg, the biggest challenge was painting a compelling Trompe-l'oeil background.

Michael L. Bear created a richly colored red egg with illuminated stained glass inside and a tiny figure with a king-of-the-sea motif. Bear recalls seeing a Fabergé Egg exhibition about 10 years ago in Cleveland. "I was blown away by the Coronation Egg, which was the primary inspiration for this egg," writes Bear. "The most difficult part of the project was getting the stained glass to fit properly in the egg."

The winner, Patricia Harding, is a professional artist who specializes in using egg shells. Taking a cue from Fabergé's "Renaissance Egg," Harding created a monumental work by bedecking an ostrich egg with opals.

"I, like other egg artists, am inspired by the beautiful creations of Fabergé, to take a perfect egg, simple in form, to create a beautiful art piece," she writes. Harding is a veteran to the world of egg art. She is the first person in the world to be certified as a master in each of the nine categories of egg art recognized by the International Egg Art Guild and so earned the title of "Grand Master of Egg Art."

She is as generous in her praise of the other contestants as she is talented. Her version of the Renaissance Egg proudly wears 72 opals, all similar in color. Matching the opals was the greatest challenge behind this work, she says.

Harding wins a Sonos Multi-Room Music System worth $999.

Thank you to all who shared their astounding creations with us. The four runners-up and the winner of the Forbes-Instructables contest, will be on display in the Forbes Gallery, located on 60 Fifth Ave., New York, from Nov. 12 to Nov. 29. The gallery is free of charge to the public.

In Pictures: When The Egg Comes Before The Chicken

In Pictures: Egg-Citing Winners

See Also:

Egg-citing Fabergé-Like Inventions

Inventing the Future


http://www.forbes.com/2008/10/29/innovation-faberge-contest-tech-personal-cx_ec_1029egg.html


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Friday, October 17, 2008

Intel Inside--Classroom

Forbes.com

By Elizabeth Corcoran, 10.17.08, 05:43 PM EDT

The chip company is pursing a classic, long-term strategy by investing the minds of the world's young.

Brenda Musilli is just the sort of no-nonsense executive who has helped build Intel Corp. into the world's largest computer chip company. A 30-year Intel veteran, she's done stints in marketing, finance and other corners of the corporation.

And she has a swift no-nonsense answer if you ask her what will be one of the themes at Intel as the company works its way through the current global economic crisis: It's got to keep up its support for education both in the U.S. and abroad.

"These kinds of investments are about remaining competitive as a company," says Musilli, president of the not-for-profit Intel Foundation, which was founded in 1988 and devotes more than half its resources to supporting education efforts in the U.S. and overseas.

Yet even the best-intentioned programs in education face some thorny challenges. On the top of the list: high-technology companies figure their future workers will need a complex set of skills that go far beyond the classic reading, writing and 'rithmatic. But U.S. public schools are still wrestling with how to deliver even those basic requirements--and under the Bush Administration, they face severe penalties if they do not raise their standardized test scores in those subjects. The concern within educational circles is that schools are becoming obsessed with test-taking at the expense of teaching more flexible critical thinking skills.

Those pressures are likely to become even more extreme as school budgets grow more pinched in a chilling economy.

Musilli points out that Intel has supported education since its days as a start-up and that its leaders--starting with Chairman Craig Barrett and Chief Executive Paul Otellini--are deeply supportive of education initiatives.

See "Intel's Chairman On Innovation."

About 10 years ago, Intel dramatically stepped up its education programs. It now values its annual support for education programs supporting math, science and technology at $100 million, a combination of cash grants, equipment and services. (Although we only published the top 10, Intel would have ranked 13 on our list of the most generous corporations in terms of total cash donations.)

When Intel went through layoffs in 2006, the foundation scrutinized its programs, too. "We looked at how we could scale more efficiently and at which programs were getting the biggest impact," Musilli recalls. But the $100 million commitment--about 1% of its fiscal 2007 operating income of $8.2 billion--stayed steady, she says.

That support goes into a host of education programs, both ones aimed at grabbing headline attention and ones providing more subtle backstage efforts.

In 1999, Intel took over the grandfather of all science fairs--the now 66-year-old "Science Talent Search" contest, which attracts something like 1,600 entries each year from U.S. high school students and a similar program internationally that attracts another 65,000 students around the world. The programs aim to make student scientists into heroes--a sort of "American Idol" for the geek set. The financial awards are significant, too: The winner gets a $100,000 scholarship and, each year, the top 40 U.S. winners split prizes that together are worth $1.25 million.

Additionally, Intel annually awards prizes to schools that demonstrate strong science and math programs. In September, Intel lauded Sojourner Elementary School, a 170-student magnet elementary school in Milwaukie, Ore., as a "star innovator." (Sojourner will share cash and prizes worth about $1 million with five other finalist schools.)

There are also fun programs, such as a constellation of more than 100 "computer clubhouses" that Intel sponsors around the world. (Two-thirds of those are in the U.S.)

But Intel's also counting on its behind-the-scenes efforts to pay big future returns. Since 1999, it has offered workshops on how to use technology in the classroom for teachers of grades K through 12. Originally, then-Chief Executive Barrett set a goal of training "100,000 teachers in 1,000 days."

But no company understands how to scale projects better than the computer chip giant. By developing workshops that train senior trainers to teach "master" teachers, who then convey those lessons back to teachers at local schools, Intel estimates that its program has now touched 5.5 million teachers in 40 countries.

"We don't charge for it; it's not for sale," notes Stephen Andrews, the U.S. manager for the Intel Teach program. The programs are technology "agnostic." "We provide the professional development that teachers need, no matter if they're using Macintosh computers or PCs. It's all about the subjects and [grade-levels]," Andrews says. Local school districts have to put support into the programs, too, by giving teachers time off to take the programs and encouraging technology use.

But then there are those standardized tests.

Driven by the Bush Administration's No Child Left Behind program, which demands increases in test scores at the risk of withholding funding, schools have become obsessed with tests, even spending scarce funds and school hours to practice test taking and working on skills such as "bubbling"--properly coloring circles on multiple choice tests forms.

By contrast, high-technology companies are strong advocates of developing what they call "21st century skills," namely the skills and knowledge that they feel will be needed in the coming years. These involve improved communicating and thinking skills, problem solving skills, creativity and "self-direction" skills.

Intel tries to dance between those two demands, using its funding to help schools with the basics while steadily emphasizing the skills that its executives feel will be essential in the future. It has poured significant efforts into coming up with its own metrics for grading the success of its programs, contracting with outside organizations to assess and monitor its programs. "We believe the metrics and evaluation of the program are critically important," Musilli says.

Intel's assessors look at whether teachers who have gone through its workshops are working more collaboratively with other teachers, using technology to advance the curriculum in interesting ways and are engaging the minds of their students.

"But no, it's not directly correlated to test scores," Musilli concedes. "If you believe the research that talks about why the 21st century skills are so important, then one would hope those skills would lead to improved test scores," she says.

And that classic, long-term investment strategy may be one of Intel's greatest gifts to U.S. schools.

http://www.forbes.com/2008/10/17/intel-foundation-education-tech-corprespons08-cx_ec_1017intel.html

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