Cisco Systems & Urban Decay: Sandy Lerner (2018)

Podcast Summary

• Stories of successful individuals and their journeys: Determination, adaptability, and human connection are essential for achieving success. Balance work and leisure, reinvent yourself, and choose opportunities that make a difference and foster growth.

  Successful individuals, whether they've built a tech giant or a makeup brand, have faced challenges and persevered. Sandy Lerner, co-founder of Cisco Systems, shares her story of leaving the company during tough times and reinventing herself with new ventures. Travelers can also relate to the importance of balancing work and leisure, as mentioned by the speaker, who encourages choosing a business card that enhances travel experiences. Companies like Amica and the National Security Agency offer unique opportunities for individuals to make a difference and grow in their careers. Atlassian, a software company, highlights the importance of collaboration and innovation, especially with the integration of AI into teamwork. Overall, these stories emphasize the value of determination, adaptability, and human connection in achieving success.

• Leveraging Technology and Collaboration for Accelerated Work and Personal Growth: Utilizing AI-powered software, expert-led learning platforms, and reliable tools can lead to increased productivity, innovation, and personal development.

  Technology and collaboration can help individuals and teams achieve more than they could alone. Atlassian's AI-powered software and Masterclass's expert-led learning platform are examples of tools that can accelerate work and personal growth. Meanwhile, the story of Sandy Lerner, co-founder of Cisco Systems, demonstrates the potential for innovation and reinvention, even after setbacks. Additionally, having the right tools and resources, such as American Express business cards and reliable networking infrastructure, can significantly impact business success. Overall, these examples emphasize the importance of leveraging technology, learning from experts, and staying adaptable to new opportunities.

• Encountering sexism at her first job propelled her to pursue higher education and computer science: Determined to leave a sexist workplace, she accelerated her education and discovered a passion for computer science, leading to a successful career

  The speaker's early experiences with sexism at her first job led her to pursue higher education and eventually a career in computer science. Growing up on a farm, she had experience with various jobs and was used to getting things done. However, her first job at a bank introduced her to sexism, which was a new and unsettling experience. Determined to leave, she accelerated her education and earned her undergraduate degrees in international relations and Marxist economics in just two years. She then went on to Claremont Graduate School, where she discovered her interest in computing while working as an advisor in the computer room. Despite her initial plans to become an academic, she found herself drawn to the field of computer science and eventually attended Stanford University to continue her studies. At Stanford, she worked on DEC 10 and 20 systems, which were part of a large time-sharing system, and became a volunteer to gain more experience. The speaker's determination to escape sexism and pursue her interests led her to a successful career in computer science during a pivotal time in the industry's history.

• A Female Pioneer's Journey in Computer Science at Stanford: Determination, resilience, and a deep love for programming led a female computer scientist to thrive in a male-dominated field, building her own internet and maintaining computer systems with a supportive community.

  The interviewee's experience as a female computer scientist in the late 1970s at Stanford University was marked by determination, resilience, and a deep love for the field. Despite facing challenges such as limited access to education and being one of the few women in a male-dominated field, she persevered and thrived. Her passion for programming, driven by both the independence it offered and the financial rewards, led her to excel in a community of like-minded individuals. The camaraderie and shared experiences of this group, who built their own internet and maintained their own computer systems, created a unique and rewarding environment. A pivotal moment in her career was meeting Len Pozak, who became her partner, and whose contrasting demeanor further fueled her admiration for the field.

• A group of engineers at Stanford University secretly built a network to connect incompatible computers: Passionate engineers at Stanford University created a network protocol to connect various computers, paving the way for the internet

  During the late 1970s at Stanford University, there existed a group of engineers who recognized the need for a network to connect the various incompatible computers on campus. This group, which included Vint Cerf and Bob Kahn, worked in secret to build a network using ARPANET funding. At the time, there were thousands of computers at Stanford, but they couldn't communicate with each other due to their different manufacturers. The engineers' motivation was not driven by financial gain or politics, but rather their passion for innovation and the belief that it was the right thing to do. Their efforts eventually led to the creation of a network protocol that allowed these computers to communicate, which was later adopted as the Stanford University Network. This network marked a significant step towards the development of the internet as we know it today. Vint Cerf and Bob Kahn married in 1980, and both went on to have successful careers in the field.

• Founding Cisco amidst legal challenges: Determined to commercialize their groundbreaking routing technology despite legal hurdles, Sandy and Len founded Cisco, eventually reaching a settlement with Stanford and continuing to build their company.

  Despite developing groundbreaking routing technology at Stanford University, Sandy and Len were unable to license it due to university policies. Frustrated and determined to bring their innovation to the world, they founded Cisco Systems with just $5 in 1984. However, their journey was not without challenges. Around the same time, Stanford accused them of stealing their technology, threatening legal action. Sandy and Len responded by asserting that the technology was a community effort and that they had not taken any Stanford funds for their work. Ultimately, they reached a settlement with Stanford, allowing them to continue building Cisco while acknowledging Stanford's role in the technology's development. This episode underscores the importance of intellectual property rights and the complexities of bringing new technologies to market.

• The founding of Cisco Systems was driven by serendipitous circumstances and financial stress: Cisco Systems was founded based on the departure of key engineers from Stanford University, financial struggles, and a need to pay royalties. The company initially relied on personal savings and loans to survive, but managed to secure early customers and generate significant revenue.

  The founding of Cisco Systems was a result of serendipitous circumstances, including the departure of key engineers from Stanford University and the need to pay a fair royalty for the use of their network. The company was initially self-funded through personal savings, mortgages, and small loans from friends and colleagues. Despite the financial stress, they managed to secure early customers such as Hewlett Packard Laboratories, Rutgers University, and Boeing, and by 1987, were generating quarter of a million dollars in revenue per month. Len, a co-founder and hardware engineer, played a crucial role in the company's success as a hardware manufacturer, while the founders' backgrounds as programmers enabled them to develop the necessary software. The early routers were small in size, around the size of a microwave, and building them was a labor-intensive process. The founders faced significant financial stress, as they lacked the funds to manufacture the routers quickly enough to meet demand, and had to rely on personal savings, loans, and credit cards to keep the company afloat.

• Building Cisco Systems: A Trench Warfare Experience: Despite facing skepticism and limited resources, Sandy and Len persisted to build Cisco Systems, demonstrating the grit and determination needed for entrepreneurial success. However, securing funding and navigating the investor landscape proved challenging.

  For Sandy and Len, securing funding for their router company, Cisco Systems, was a challenging process due to the perception that anyone could replicate their technology since it was based on a public protocol. They faced skepticism from investors who thought they couldn't make a profit and struggled to relate to their unconventional team, which included a woman founder and an eccentric leader. Despite these challenges, they persisted with a lean team and limited resources, relying on family and free labor to keep the business afloat. The experience was described as nerve-wracking, akin to being in a World War I trench under constant attack. Eventually, they found the right investor, but both Sandy and Len eventually left the company they built. This story highlights the grit and determination required to build a successful business, as well as the challenges entrepreneurs face in securing funding and navigating the investor landscape.

• The importance of aligning vision and values with investors and hires: Maintaining alignment with investors and hires is crucial for a startup's success. Conflicting visions and values can lead to conflicts and ultimately, failure.

  Having the right investor and mentor can significantly impact a startup's success, but it's crucial to maintain control and alignment with the company's vision. Don Valentine, a well-known VC with a successful track record, invested in a struggling startup and offered valuable resources. However, he also brought in a new CEO, John Morgan, who had a different vision for the company. This led to conflicts and ultimately, the company did not end well. The lesson learned is that while external investment and expertise can be beneficial, founders must ensure that their vision and values align with the investors and new hires to maintain control and maximize potential for success.

• Founders' loyalty and ethics: Despite personal and professional hardships, loyalty and shared ethics enabled founders to overcome business challenges and retain their stake in the company

  Despite the tensions and challenges at Cisco, including gender bias and interpersonal conflicts, the founders' intellectual partnership and shared sense of ethics ultimately prevailed. When the CEO attempted to fire one of them, Len stood up for his partner, putting their friendship and shared values above company politics. This act of solidarity allowed them to retain their stake in the company and maintain their respect for each other, despite the personal and professional hardships they faced. The story highlights the importance of loyalty, ethics, and a strong partnership in navigating business challenges.

• Losing a significant part of one's identity can lead to emotional distress: Despite financial security, the emotional impact of losing a job can lead to new opportunities and directions

  The sudden and unexpected departure from a company, even with a substantial financial gain, can lead to a profound sense of loss and identity crisis. Sandy Lerner, after being ousted from Cisco Systems with $170 million, was left feeling devastated as her entire adult working life had been tied to the company. Instead of spending the money on herself, she chose to create PetNet, a database for animal shelters in the Bay Area, reflecting her love for animals and commitment to the common good. Later in the 90s, she started Urban Decay, a cosmetics company, as a complete shift from her previous experience. This shows that despite the financial security, the emotional impact of losing a significant part of one's identity can lead to new opportunities and directions.

• Creating a makeup line for the unconventional: Wanda's unique perspective and refusal to conform led her to create Urban Decay, a successful makeup line that catered to those outside societal norms by using top-notch ingredients and unconventional names and colors, and filling a gap in the market with authentic innovation.

  Wanda's unique perspective and refusal to conform led her to create Urban Decay, a makeup line that catered to those who didn't fit into societal norms. With a background in computer technology and a passion for punk culture, she focused on creating innovative, high-quality products with unconventional names and colors. Urban Decay's success came from its commitment to using top-notch ingredients and refusal to test on animals, which resonated with consumers during the grunge era. Wanda's technical expertise allowed her to produce and perfect her products quickly, giving her a competitive edge. Despite her success, she eventually sold Urban Decay to LVMH due to the lack of intellectual property protection for color cosmetics. Overall, Wanda's story demonstrates the power of staying true to oneself and filling a gap in the market with innovative, authentic products.

• From Netscape to Farming: Wink's Journey: Co-founder of Netscape, Wink Net, sold Urban Decay for a fortune but kept none of the proceeds, then started a sustainable farm, emphasizing humane and organic farming practices, and maintained a successful partnership with ex-wife Len Blavatnik.

  W. Randolph "Wink"net and Len Blavatnik, co-founders of software company Netscape, have had remarkable success in business and personal life. Wink started Urban Decay cosmetics, which was later sold to L'Oreal for a significant amount, but kept none of the proceeds. He then moved to a sustainable farm in Virginia, raising rare breeds of cattle, pigs, chickens, and turkeys, believing in humane and organic farming practices. Farming, he admits, is much harder than any academic pursuits. Wink and Len, despite no longer being married, maintain a partnership and mutual respect, and their foundation, Ampersand Foundation, is named after their partnership. They sold their Netscape stock together, not for financial gain, but to distance themselves from the company's management and improve their quality of life.

• Success is a combination of intelligence, hard work, and luck: Success requires a mix of intelligence, hard work, and luck. Navigate through ups and downs to define your success.

  Success in life and business is a combination of intelligence, hard work, and luck. Sandy Lerner, the co-founder of Cisco Systems and founder of Urban Decay Makeup, attributes her success to being half smarter, half working harder, and half due to luck. She emphasized that there were instances where Cisco could have failed but was saved by circumstances beyond their control. Lerner, who is known for her hard work and love for it, has designed her epitaph with one word: "Bold." Beyond her business ventures, she also started a library in the UK and wrote a Pride and Prejudice sequel. On the other hand, the early 2000s saw the rise of reality TV shows that were considered failures. One such show was "The Swan," where women underwent physical transformations and competed in a beauty pageant. The show was a viewing nightmare, with the contestants being isolated, berated, and ranked by judges. These stories illustrate that success and failure are complex phenomena that involve a mix of factors. While intelligence, hard work, and talent are crucial, luck and external circumstances also play a significant role. It's essential to remember that every journey has its ups and downs, and it's how we navigate them that defines our success.