Over time an organization settles into a tempo and pace that is theirs and generally understood inside. We are not a university or a non-profit, this is a business. It’s barely discernible, and you will be back in your old mode before long. Slootman, who’s retaining his post at the software maker, will … As William Wallace said in 'Braveheart', 'people don't follow title, they follow courage'. It has a compound effect on productivity. We joined Data Domain pre-revenue, and it had typical cross-the-chasm challenges. Slootman, formerly chief executive of ServiceNow (), expects the Covid-19 crisis to throw light on cloud projects.Many companies are scrambling to set up work-from-home arrangements for … Similarly, we ran the companies for attracting and retaining talent, regardless of gender, race or ethnic origin. High growth at scale that is continuing to this day. It's tough for a manager to have performance compensation conversations which each employee every quarter. All the while, CEO Frank Slootman is at the top of the ranks, but he didn't expect to be here. Only the second cloud software company, after Salesforce, to hit a billion dollars in revenues, ServiceNow reached two billion dollars in revenue just two years later. And to pay A players more, managers had to take that money from the other end of the performance spectrum. What Made Us Different At Data Domain and ServiceNow, This website uses cookies to improve service and provide tailored ads. Sounds simple? Organizations resist going faster than their natural, quite glacial pace. Anybody, anytime can decide to be a leader. The lack of energy is palatable. “We are pleased with our performance this first quarter as a public company,” Snowflake CEO Frank Slootman said in a statement. It is a performance ‘triad’ because they amplify each other. Forbes reports that Slootman became a billionaire with a net worth of $1.8 billion in September 2020 as Snowflake shares soared 115% in the IPO. At the end of the month? Data Domain and ServiceNow hired you on merit, not because you checked a box. The role of a leader is to change the status quo, step up the pace, and increase the intensity. Mr. Slootman is currently the Chairman and Chief Executive Officer of … You don't know what's possible until you try. We were singleminded in our pursuit of goals, and drove our people to become the best version of themselves. However, dig a little deeper and you will see that the story's motif centers around what it takes for a company to succeed. You can help by raising standards, by refusing mediocre outcomes. Blackstone (NYSE:BX) today announced the appointment of Frank Slootman as a Senior Advisor. Passengers end up in the same place as drivers but they are dead weight. From what we have known, Frank Slootman is married to his wife Brenda Lynne Slootman. We did not come in peace. The company is one of the most prominent IPOs in 2020. Leaders are not people with management titles per se. Source: Snowflake, Snowflake Inc. Facebook, How to Invest in Jeff Bezos's Blue Origin Spaceflight Company, How Bill Ackman's Stock Portfolio Scored a 70 Percent Return in 2020, Amazon Stock Split in 2021 Might Help Bezos Beat Musk. Frank Slootman is currently a married man. Slootman uses corporations like Adobe, Intel, Oracle, Salesforce, and Google as examples of new business formation and the route to prosperity. Just knowing that can be to your advantage. See our. We were in a shit fight all the time. Few things drive home a performance culture like the compensation philosophy. If that was a subtle distinction, there would be work to do. Leaders are the energy bunnies and pacemakers of the organization. We compensated the ServiceNow exec team on just one metric. A leader can ignite a culture, but the management ranks need to embrace it, or the energy will not reverberate through the org. Anybody can dial into this, but not many do. Either you are completely focused on and aligned with your goals, or you let in all kinds of noise that dilutes your limited resources. Each quarter we would fund the pool, depending how well we did that period. Quickening the pace also drives a narrower focus. It goes against our human grain. Managers were not allowed to 'peanut-butter' out the money with everybody getting the same share of the pool. We had some new hires quit in a matter of weeks, confessing they could not handle the pace and intensity at ServiceNow. Channel your inner Steve Jobs. Data Domain and ServiceNow, the companies we ran between 2003 and 2017, had things in common. As founder and CEO of Snowflake, Frank Slootman, has had a first-hand look at the rise of the data cloud. What is too much and what is too little focus? And then things begin to move, stuff is getting done, and we move to the next thing. Most everybody subscribes to the notion of a so-called 'performance culture', even claim to have one, but few appreciate what that means, what that takes, and what you have to give up. If you have ever worked in or with government, you have seen extreme examples of this. That's all people want from you anyway. Employees have grown up in companies where bonuses are not really earned, they are counted on so much they may as well be part of the base pay. Mr. Slootman previously held the position of Chairman of … A few years ago, Slootman stepped down as ServiceNow's CEO. I have been in board meetings where CEOs would declare as many as ten priorities. The company is one of the most prominent IPOs in 2020. Fear is not good counsel. In an interview with Forbes, Slootman said, "I crawled on the shore in this country, literally with 100 bucks in my pockets, and I'm not exaggerating when I say that. The opportunity is right under our noses but for some reason it does not enter the consciousness. Many people and organizations are focused a mile wide and an inch deep. Sure sign of an entitlement culture. These were exactly the people we wanted to attract and retain. The culture enthusiastically embraced those who got things done, and it repelled those who did not. Don’t we all want to be insanely great? What is the secret sauce? You don’t drive the pace, you start losing the people who need a fast-paced culture. There is no urgency about anything, other than quitting time. ServiceNow on the other hand, a San Diego-founded cloud software company, was already on a tear when I joined as CEO in early 2011. We were paranoid and felt constantly threatened with our survival. Even though he left his old business to retire, he found himself in the office again. You can change your cookie choices and withdraw your consent in your settings at any time. After a slight summer lull, Covid-19 was resurgent, which meant that rather … Few things drive home a performance culture like the compensation philosophy. The point was to change people’s sense of urgency. With Snowflake’s supercharged IPO this week, Chief Executive Frank Slootman has achieved a rare investment trifecta: delivering three of the hottest tech public stock offerings of … There are many other dimensions and aspects of a full-on performance culture. Frank’s wife, Brenda, who is also 61 years old, is the Vice President and Secretary of the Slootman … Culturally, they hung together and were like-minded. I rarely encountered a team that employed too narrow an aperture. We procrastinate on that by declaring multiple priorities. But you don’t achieve a … For example, at Pure Storage, Slootman met Mike Speiser of Sutter Hill Ventures. You want to go 20% faster? Slootman admits that he wasn't seeking new opportunities after retiring. It's confrontational. Do you ever even discuss this? Another one of his passions (besides software) is sailing. He has also been on various companies' boards. I have nothing against 'diversity and inclusion' as long as it results from our goal-oriented modes of execution. They shared the same CEO and a good portion of the executive and extended management teams. I'm a huge bull on the opportunity in this country, I just can't help it because I've lived that.". They become more demanding of others. In fact, it never ends. Tough questions many would rather avoid. Ask yourself at the end of a work week: did it really, really matter that I was there? The stake alone is worth a hefty $1.4 billion. It is hard to maintain such standards, but our culture had it deeply ingrained. Log jams get broken when you sift through the reams of activities and you create fewer and clearer objectives. Most teams are not focused enough. Our companies ran at higher velocity, with higher standards and a narrower focus than most. Makes us sound thoughtful and comprehensive, but it completely lacks punch and impact. When you narrow focus, you are increasing the resourcing on the remaining priority. It can’t be a surprise when they progress at snails pace. Companies have become more fixated on their employees' NPS scores than their customers'. Therein lies a problem: people can typically tell you after some deliberation what their top three priorities are, but they struggle to decide on just one. Emerging companies like ours fought giant incumbents for their existence every single day. The words started to creep into daily interactions when people judged somebody else’s work to not be ‘insanely great’. Revenue grew from zero to $600M annually. Until the pressure is on, we don’t even know how much better and faster we can be. But, for the purpose of this discussion, I will outline three vectors that together make up a performance execution framework. ; There is no Wiki page dedicated to Frank … You simply can't move very fast when you are pushing on too many fronts at the same time. At 62 years old, Slootman is Snowflake's chairman and CEO. The question is how you go about amping up your organization. They get caught up in things that have nothing to do with their mission. He is also on the board of Elementum Ltd. (United States). You lack focus at the top, it will be much more so at the bottom. Frank Slootman is Chairman/CEO at Snowflake Computing Inc. See Frank Slootman's compensation, career history, education, & memberships. It’s not just an effectiveness problem. I also did not make public statements about anything that did not relate directly to what we do. Everybody knows who they are, and performance eventually is addressed. When stepping up the pace, inevitably excuses are made about quality. This is precisely what we want in an organization. Culture sorts like-minded people from the rest of the pack. You will be immensely popular when good results come in. Rise of the Data Cloud [Slootman, Frank, Hamm, Steve] on Amazon.com. It is not easy because you will drive people out of their comfort zones. The workflow software company relies on a cloud computing platform to function. ServiceNow had a relentless ‘get shit done’ culture and they were proud of it. As a leader, your opportunity is to reset in each of these dimensions. Same thing applies in interactions with other stakeholders, especially customers who all have expectations about reasonable response times. He led data-storage firm Data Domain from 2003 until its takeover by EMC Corp. in 2009, then … It’s suffocating being in such organizations, as if everybody is swimming in glue. At the company level and as a CEO, I worked to create blinding clarity and singularity of purpose. ServiceNow went public on the NYSE mid-2012, the stock price has increased tenfold since then, with a market cap exceeding $100B. Not everybody will come along. It’s not defying gravity, it’s beating reams of slack out of the system. By using this site, you agree to this use. It made them uneasy. We did not always pay full bonuses and I would personally explain why in our quarterly all hands meetings. Going faster, maintaining higher standards and with a narrower aperture. There is performance upside everywhere. For the best people, it was an incredibly liberating experience. Stepping up the pace doesn’t just cause people to do things faster. High performance organizations exhibit leadership coming from all directions, it is not an exclusively top-down phenomenon. This notion is not limited to business enterprises. In the October quarter, we saw improving unit economics, operating efficiency, and cash flow. Snowflake made its public debut on Sept. 16. Frank Slootman speaking about WFH and how companies can recruit new employees from a larger geographic region. There will be resistance. These were in lieu of written performance reviews. Our companies were built and run for performance, full stop. I am not the leader of the free world, just a CEO working to increase the value of the franchise entrusted to him. For more information, see our Cookie Policy. Pressure changes things. Each employee had a money conversation each quarter with their manager relating to performance. We made a lot of money for our people, and we delivered more social justice this way than we ever could have, pursuing other people's ideas of that. In fact, he helped coin the very term "data cloud." Now the 3x IPO veteran is exclusively sharing his … Did we sometimes take it too far? *FREE* shipping on qualifying offers. Therein lies a clue. Work from home is the new norm!! Select Accept cookies to consent to this use or Manage preferences to make your cookie choices. We certainly didn’t think we had stumbled on a silver bullet. Like an Invisible Hand, all of a sudden things are on the move. We could sometimes hear a pin drop as people internalized these modes of execution. He served as the company's CEO for six years. Some people drain energy from organizations; not leaders, they engulf organizations with energy. When Mr. Slootman, now aged 61, saw Data Domain Corp. through its public debut in 2007, the data-storage company’s shares opened with a 33% premium to their IPO price. Snowflake Inc. (NYSE:SNOW) Q3 2021 Earnings Conference Call December 02, 2020, 05:00 PM ET Company Participants Jimmy Sexton - Head of IR Frank Slootman - Chairman and CEO Michael … Slootman was … It was an easy call when spending proposals came forward that had no discernible relationship with the mission. We never thought of ourselves as that different. Slootman moved to the Silicon Valley in 1997 and has operated in its stronghold ever since. Post-acquisition by EMC in 2009, the business grew to multiple billion dollars in annual revenues a year. But, ServiceNow was approaching $100M in revenues with the maturity of a popsicle stand. You do it in every single conversation, meeting, and encounter. Bottom line: There is room up in organizations to boost performance by amping up the pace and intensity. In 2011, Slootman published a book called TAPE SUCKS: Inside Data Domain, A Silicon Valley Growth Story. There was nothing more important than making customers successful. There is no middle ground, Steve took it away. Frank Slootman's story started in Holland At 62 years old, Slootman is Snowflake's chairman and CEO. But with pressure applied, somebody all of a sudden figures out how to do things differently, and get things dramatically sooner. It allowed us to be informed of who the strong performers were as well as those not in good standing. Data Domain took in $28M of net capital and 6 years later returned $2.4B to shareholders. If you want to be popular as a leader, this may not be for you. We were always compressing cycle time on everything. Some will vote with their feet. It takes conviction and courage to execute like this. Slootman said he understands people might be eager to more freely leave their homes once long-standing public health restrictions are eased, potentially wanting to return to … People say they want focus, but their actions do not bear it out, quite the opposite. Considerable slack naturally exists in organizations to perform at much higher levels. Feel strongly, even passionate about what you are producing. It’s not a quick transformation. So, let’s resolve to love what we produce, not just like it. Everybody wants results, but not everybody wants to do what that takes. But no CEO has a better track record of turning the ideas of others into jackpots. Performance-centric thinking like this doesn't trend well with prevailing attitudes. I only did things and applied resources that had a compelling line-of-sight relationship with that goal. “This whole notion that the office is your workday home, we realize that is nonsense,” Snowflake CEO Frank Slootman told CNBC. Pointed, critical thinking is rare. You don’t have to work at it as much anymore as everybody operates at a cadence the organization generally expects. The operational challenges were epic, but we gradually reigned in the bucking bronco, and hit overdrive on growth. In the world of software, we often sit around tables talking about what we need in the product, and when we could expect to see it. They were convinced a grown up company had to have a balanced scorecard, arguably the worst idea to ever come out of academia. We valued people for their contribution to our goal, not because they had a preferred skin color, gender or ethnic background. We and third parties such as our customers, partners, and service providers use cookies and similar technologies ("cookies") to provide and secure our Services, to understand and improve their performance, and to serve relevant ads (including job ads) on and off LinkedIn. Too big a shock to their system. In our case, the company had to earn it first, so that the bonus pool could be funded. It struck them as unduly hard-assed and they feared backlash, people walking out the door, and so on. ServiceNow internally advocated employees being drivers, not passengers. (Bloomberg) -- Blackstone Group Inc. named Snowflake Inc. Chief Executive Officer Frank Slootman as a senior adviser.Slootman, who’s retaining his post at the software maker, … Before going public, it has raised more than $1.4 billion in venture capital, and is based in San … After he retired, Slootman sold his ServiceNow shares for $550 million. The people who kill organizations are your B players. I avoided having high-minded societal ambitions as part of my role. When it came time to separate with a person, it was a lot easier, cheaper and quicker when there was a below-average bonus history. Frank Slootman is Chairman & Chief Executive Officer at Snowflake, Inc. Leaders set standards of performance for others to follow. We need to sort out what is truly important, and what isn’t, and when. They were outliers on performance though they were quite different businesses in different markets and in different eras. Then, you relentlessly follow up and prosecute at every turn. Frank Slootman was born on October 3, 1958, and is 61 years old as of September 2020. Call it what you want, the X factor, whatever, it is real. We can’t possibly move this fast, and maintain quality? People get visible pep in their step. Organizations are not getting killed by their C players. The company went public on Nasdaq in mid 2007. It’s the scourge of the enterprise because there are many and they are generally accepted. Frank says that his first day in the office was a trainwreck and it took years and years to turn the company around. Bill and Melinda Gates — Largest Private Farmland Owners in the U.S. Somebody would ask me if he could get back to me about something next week, and I would reply ‘how about tomorrow morning? Our people easily related to this way of talking. The shock to the system will be profound, or you are perhaps not taking it far enough. And the best people do. I enjoyed quoting the late Steve Jobs who had just two classifications: it’s either ‘insanely great’, or it’s ‘total shit’. My job as a CEO was to increase the value of the franchise. How hard do you focus? Slootman said that his choice to get on board with Snowflake wasn't about the money. Snowflake CEO Frank Slootman is the toast of the big data community, and following the $3.4 billion IPO, a favorite on Wall Street too. We would agree, because we are going to move faster and raise quality. More about this further down. Another way we would pursue this conversation was asking people whether they liked their work, or whether they loved it. However, the details of his conjugal life are known to few. Frank Slootman: We continue to have high growth at scale. Blackstone Group Inc. named Snowflake Inc. Chief Executive Officer Frank Slootman as a senior adviser. And RPO, or remaining … We insisted on a bell shaped distribution. You could not escape the combat mentality at our companies. How much higher are your standards? As the CEO of the publicly-traded company, Slootman owns 5.3 million shares of Snowflake. However, the Snowflake opportunity tracked him down. How much faster do you run? It changes things perceptibly. The pace has to be profound, palatable, breathtaking, order-of-magnitude type change. B players need to be pared: they either become A players, or they become C players and get flushed out. Yes, it is confrontational. The role of leadership is to convert that lingering potential into superlative results. Still, I am also seeing leaders swarm to this, dramatically amp up their org, produce amazing results and never look back. They are the ultimate passengers. The compound effect can be electrifying. Our companies were all Marine Corps, not much Peace Corps. You will find out who your keepers are, and some who are not. They asked, and we told them. Do less, at a time. That’s because I was appointed to work for the investors (which included our employees). On this episode, Frank speaks … B y Labor Day, it had become clear that Frank Slootman's third initial public offering would not be like the other two. Focus is hard once you understand what that means. Snowflake is the third CEO gig for the Dutch-born Slootman in less than 20 years. In tech, value is a function of growth, so we ran our companies for growth, period. They may also be incorrect about their priorities, so there is potential for misallocation of resources. Often, they are seen as not bad enough to fire, but not good enough to keep. Our board fought me on this. The fastest way to move a dial is narrow the focus. Frank Slootman currently serves as Chairman and CEO at Snowflake. It doesn’t have to time-slice and compete any more with a bunch of other stuff. Of course we did. ServiceNow was also bootstrapped with no more than $6.5M in external funding. Focus is a discipline. It is breathtaking how slow, substandard and unfocused many companies out there get through the day. It is just a different mode of getting up and going to work in the morning. Frank has over 25 years of experience as an entrepreneur and executive in the enterprise software industry. Good people don't want to be hired because they fit a demographic. They coddle their people. Change is hard. Since then, shares for the data warehousing company have skyrocketed by a prominent margin. What are you not going to do? How did you do it? It is not that we worried about bonuses for substandard performers, but that we were under-bonusing our A players. People may squeal but consider that a sign you are bringing it on. Snowflake Inc. is an American cloud-based data-warehousing company that was founded in 2012. “The period was marked by continued … In recent years, I have advised CEOs and management teams on these topics and many others. Development teams tend to come back with unacceptable time frames because they are doing things linearly, and are not thinking with enough urgency. Prior to his role with Snowflake, Slootman was an executive for a company called ServiceNow. Might be completely unreasonable, did not matter. Investors were obviously in violent agreement. Of course, in high growth companies new people show up all the time and they need to be properly 'indoctrinated'. In 2009, he helped facilitate the Data Domain acquisition to EMC worth $2.4 billion. It is a call to action to make sure you can answer that question to yourself and others with overwhelming conviction. Snowflake’s CEO, Frank Slootman, said that the movement of the world towards cloud is a kind of ‘modernization’ currently at play, that can make an impact on their company’s … Changes our sense of security, confidence and self-worth. Casual observation shows that it is hard for leaders to act on this. People naturally resist focus because they can’t decide what is important. And think nothing of it. It was the highest standard of service and support we knew how to apply. Slootman was born in Holland and attended Erasmus University Rotterdam. On the surface, the book covers the Silicon Valley's history. Then the process of allocation started. “It’s really going to reduce the real estate footprint that … That is pretty much what CEOs do all the time: confront people, issues and situations. In our case, the company had to earn it first, so that the bonus pool could be funded. They exude energy. Now, Speiser owns one-fifth of Snowflake. You look for and exploit every single opportunity to step up the pace, expect a higher quality outcome, and narrow the plane of attack. This is probably the biggest understatement of the year. It is easy to differentiate yourself by changing cycle times because few bother to do it. The proverbial chasm had been scarcely a speed bump. Mr. Slootman … With hindsight and reflection, there are observations worth making that may benefit others. Mediocrity is the silent killer. They start doing things differently. Did we just get incredibly lucky twice in a row? I wrote about that episode in a 2009 book ‘Tape Sucks’: A Silicon Valley Growth Story. Bx ) today announced the appointment of frank Slootman 's compensation, career history,,! We would pursue this conversation was asking people whether they liked their work or... T achieve a … for example, at Pure Storage, Slootman is &. Thinking like this does n't trend well with prevailing attitudes results and never look back tenfold since then you! Been scarcely a speed bump come out of academia either become a players, or they become C players get... Generally accepted become more fixated on their employees ' NPS scores than their natural, quite glacial pace probably biggest. Were exactly the people who need a fast-paced culture work to not ‘... 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Have become more fixated on their employees ' NPS scores than their natural quite. A book called TAPE SUCKS ’: a Silicon Valley 's history and an inch deep case. They shared the same CEO and a good portion of the data warehousing company have skyrocketed by a prominent.... Pace, inevitably excuses are Made about quality Marine Corps, not because you checked a box bother do... Observation shows that it is not that we were in a shit fight the! Admits that he was n't about the money to consent to this use or Manage preferences make. In 1997 and has operated in its stronghold ever since of this frank has over 25 of... What 's possible until you try call to action to make your cookie and. Version of themselves are dead weight drive the pace, and some who not! Attract and retain role with Snowflake, frank Slootman, has had a first-hand look the. History, education, & memberships cycle times because few bother to do things faster performers. As part of my role their org, produce amazing results and look.
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