THE TRUTH BEHIND JOBS AT DOT.COMS
Consider your abilities -- not just the pay

January 24, 2000
By MARTHA RUSSIS

Wanted: executive to lead dot.com to initial public offering. Candidates who are slow decisionmakers, nine-to-fivers, lack interpersonal skills or can't round up cash need not apply. As the number of Internet-based companies grows, executives may start thinking that cyberspace holds promise and be tempted to switch from traditional firms. Indeed, opportunity may knock, and the boundless earnings potential of an Internet company can be tempting. However, not every leader is suited for dot.coms and their frenzied pace. Executives need to assess their skills and figure out if they have what it takes to successfully lead such a company. Today's dot.com leaders are some of the youngest, most energetic and innovative business leaders in their markets. They have to be, since they're creating a company from scratch. Executive recruiter Chris Nadherny, senior director with Chicago-based Spencer Stuart, doesn't want candidates who merely keep their companies chugging along. "The candidate who is likely to make a good fit is someone who is a builder of businesses, not someone who is a maintainer of businesses. Business builders are creative, they are drivers, they are innovative, they are not afraid to take risks, they are not afraid to try things. Maintenance execs are more focused on the bottom line and cost cutting," Mr. Nadherny says. For Daniel Hamburger, president of OrderZone.com, a Vernon hills-based business supply purchasing Web site from W. W. Grainger Inc., much of that building time has centered on finding the right people for the organization and working with them to share the company's vision. He came to Grainger in October 1998 after positions with four traditional companies. "You are growing a business and you only get one chance to build a culture. I spend the least 30% to 40% of my time on the people side of the business (and) at least 20% on recruiting, including nights and weekends," Mr. Hamburger says. Every business believes it moves fast, but dot.com executives agree that there is no comparison between real time and Internet time. In Internet commerce, things often happen overnight, and businesses must adapt instantly to change everything from marketing plans to Web sites to delivery systems. Many dot.coms are also burning through venture capital funding, so time is critical. "If you live by a structured, set schedule where the speed is comfortable, you won't survive in dot.com land.  The best description is that it is like everyone's hair is on fire. Sense of urgency has a new definition," says Theodore Martin, partner with Martin Partners LLC in Chicago, an executive search firm dedicated to e-commerce companies. Since it is critical to react quickly, dot.com executives say they often don't have all the facts before they have to make decisions. Mr. Nadherny warns that slow, deliberate decisionmakers may get trampled in the Internet world because inaction is viewed as the greatest sin. One phrase commonly used to describe dot.coms is "Ready, fire, aim." In a 1999 Spencer Stuart study of executives at more than 55 North American companies, several Internet leaders said they need to make decisions without knowing the whole picture.  At 35, Fob.com LLC CEO Patrick Blake is working on his second dot.com startup; he founded his first, Tunes.com, three years ago. "There is no background data from which to make your decisions," Mr. Blake says. "The difference between the real world and the dot.com world is that in the real world, you almost have disincentive to move quickly. In dot.com world, a good decision today is better than a great decision tomorrow. That is gospel to us." Compared to large and mid-sized companies, a dot.com isn't loaded with staff. Often, a small team of people works closely together, with the company head deep in the fray. A dot.com executive can't shout down orders. "If you do not need to roll up your sleeves anymore in the brick-and-mortar world, you are going to struggle in an Internet company. The best leaders are deep into their Internet businesses, and that inspires others to make the commitment as well," Mr. Martin says. In addition, dot.com executives must be able to think beyond mass marketing and focus on the individual customer. Consumer trust and brand recognition are established in large corporations but must be won by dot.coms. As a result, Mr. Nadherny says dot.coms concerned with retaining customers tend to zero in on individuals. That means an executive focused on product and merchandising likely will be more comfortable in a traditional company, and an executive focused on customers is better suited for a dot.com. Steep learning curve Knowledge of the venture capital arena is a must, adds Mr. Hamburger, because that's probably how the dot.com will gain initial support. As for other alliances, executives must also know how to form technology partnerships and domain partnerships that will move the business forward. Still think you're dot.com material? Try this, says Mr. Blake: Take all the problems you envisioned and magnify them beyond original expectations. For instance, he recalls he had to raise 12 times the capital he first projected for Tunes.com. "It's a little overwhelming at times. the learning curve is so steep and this is so fun," adds John Hallberg, senior vice-president and general manager at Getty Images Inc. in Chicago, which is transforming itself from a traditional business to a dot.com. "To me in my role as a senior executive, there are three things that get me charged up. That is to continue learning, to see your people develop and grow and to develop positive business results and exceed people's expectations." One requirement By the way, one job skill is a given: Executives must embrace technology and understand the Internet's impact on sales. Anyone who doesn't get it shouldn't even bother. With all demands of heading a dot.com, there is one bit of good news: Failure will be tolerated to a certain extent. Since dot.coms are sailing uncharted territory, errors are inevitable. "If you are afraid of failure, you should not be doing this," Mr. Nadherny says.