The Wellspring of Leadership
In a recent Northpond Ventures (NPV) fireside chat with the 18th Chairman of the Joint Chiefs of Staff, General Martin Dempsey, he counseled that leadership comes from unexpected places, and often from people without a formal leadership title. Sometimes, according to General Dempsey, the greatest leaders are people who aren't anointed as leaders, yet still exhibit the traits.
As I look back at my career, the leadership moments I am most proud of came during a time when I had no claim to being a leader. I started my first business, Sands Capital Ventures (SCV), with no team, no committed capital, and not a lick of venture experience. I founded SCV as an affiliate of Sands Capital Management (SCM), to accelerate the next generation of high impact startups. I borrowed $5000 from my parents to make my first investment. I had no dedicated budget to hire people, or pay people, nor did I have much in the way of tangible evidence or track record to convince people to work with me.
It took six years between that initial $5000 investment to raising our first fund. Nonetheless, I was able to attract a small cadre of highly motivated and talented professionals from SCM to apportion time and energy towards our startup, despite not directly compensating them for their work. Furthermore, they reported to other people who certainly didn’t want them focusing on our startup.
Leading with no formal authority, no capital, and no financial compensation structure is the ultimate leadership challenge. People must buy into the vision, mission, and potential and be willing to withstand years of hard work with only modest progress. Yet each small point we put on the board, no matter how insignificant it may seem today, was that much more rewarding because we were the underdogs, the true believers who wanted to positively affect the world.
This type of leadership is a choice, part of a value system that drives you to never quit, see the world as a better place with your work, and respond positively to each action regardless of the end result. It’s an ongoing experiment—and an adventure. Most important, this type of leadership is not about ego. It’s about appreciating the team members who stay the course, especially in a challenging environment that lacks explicit rewards.
If you want to be an effective leader—whether formally or informally—you must be truly and deeply passionate about a particular mission and purpose. This alone ensures that you continue to grow both as an individual and as a leader. It keeps you motivated and committed through the challenging times, and it drives you to consistently seek out innovative ways to improve and grow. In addition, a strong sense of purpose helps you connect with others and build strong relationships, as your commitment to your work and personal values inspires them to join you on your journey.
Of course, maintaining this passion and purpose isn't always easy. Things inevitably go wrong. Challenges arise and commitment wavers. In order to persevere, you need to be able to weather the storms while maintaining your focus and commitment. You’ll often need to rely on an inner strength, on a sense of resilience, to move forward. Often, this means investing time and energy into self-reflection to ensure that you're staying true to your values and intentions.
Now that my second entrepreneurial venture, NPV, is of significant scale, I frequently get solicited to be on leadership panels and often get asked how we have achieved so much within the past few years. The reality is, the critical foundation was built over a prior decade—or more—when few people were paying attention. Like with an iceberg, people only recognize the exposed tip, missing the unseen substance undergirding the success or growth.
My point? If you’re looking to be inspired by great leadership, or want to understand how entrepreneurship works, find those folks achieving early results and attracting talent to their causes through charisma, passion, hard work, and resilience, in lieu of a track record, organizational stature, or strong financial backing. Chances are these inspiring leaders are being dismissed by many of their peers, struggling to get modest financial support, and experiencing more setbacks than victories. These are people who are more defined by hunger, by passion and persistence, than by accolades or the benefits of material success. They have yet to accumulate trophies on their bookshelves or widespread industry acclaim. Instead, they have an inspiring vision, a compelling sense of desire, a willingness to sacrifice, and an ability to make all of these traits palpable for others.
This is where the wellspring of leadership will be found.