| Starting to perhaps understand how VC investment results over time have been so mediocre compared to other asset classes. If 'Confidence Driven Workplace' ie. being loud, interrupting -- shuts down a mellow minded person whose contribution is lost (Pao for example) -- it could be a mistake to get behind that kind of culture. A study might show why VC returns are so mediocre. The non-risk-adjusted RoR through mid-2013 for VCs was 7.8%; the S&P (the market) was up 7.3%.
The VC investment was far more risky (obviously). The LPs (limited partners) have to cough up two and twenty of their investment (MPs take 2% of AUM as a fee and 20% of profits over some threshold return like, say, 6%). So they're not even seeing that highly-volatile, high-risk 7.8% anyway. It would be an interesting research project over time to see if a culture of decent, respectful relations and manners led to the same or better VC investment returns. 'Confidence-driven' is a misnomer, if you're a loud b.s. artist with money, BAM you're 'owning the room' ?, shutting down introverts with potentially great ideas. Pao has great academic credentials but comes from an easy-going, somewhat passive culture, shutting down such people with a crappy 'confidence driven' workplace may be a detriment to the LPs who overpay VCs to make investments based on loudmouths and interrupters. Sheesh what a dumb environment. Most of us doubt that the only good investment ideas come from big mouths who are skilled at shutting (shouting?) down others. |
What has to happen is there has to be near unanimous backlash against loud b.s. talking assholes. Silence and pause often is interpreted as agreement.
In other words unless the environment of respect and normal discussion is not defended it will end up being dominated by a few assholes. I've seen in this meetings most often, you've seen it too.
They dynamic is often interesting to observe. Get enough people in a meeting and you'll see it. Normal meeting agenda devolves into bikesheeding and the tempers get hotter over which color the buttons should be. Those in charge will always say something. Because if they don't they often can't justify their leadership position. There is a little part of the their brain says "How can I just sit here. I am paid 3x these people, I am supposed to lead, I better say something forceful and impactful". -- "No, no, the button is the wrong shade of green".
It is also interesting how there are "body languages how to own the room and project confidence" tips. Stuff like "Lean forward, extend the fingers if your hands, touch the tips of fingers of one hand with corresponding fingers on the other hand". I saw someone try those tips ones. They were just going through a list of those things, because they've probably read them in book. It looked very artificial and forced, and instead of projecting confidence it projected, well... the opposite.