The Psychology of Power & Influence

Meet Raj Prakash, cofounder of Zifo, a science informatics company in India. While growing revenues is on almost every entrepreneur’s mind, Prakash believes building a thriving culture should be too. Hear how creating a great place to work is helping his company achieve great results.

Zifo is one of the largest global pure play science informatics companies, with over 1,800 employees. And it counts many of the largest global bio-pharma companies among its customers. The company focuses on technology for collecting and analyzing data that has been instrumental in the development of medications and vaccines for global viruses and illnesses. But that’s more of the quantitative story. For Raj Prakash, thinking about the qualitative experience of his employees is essential to success. “We are a science-first, people-first company,” he explains.

Prakash has a broader definition of what it means to grow. “It's just not revenue,” he says. “ It is about opportunity to people, opportunity to explore self. It's doing something impactful. It's a people-driven mechanism that encourages persistence and tenacity to get results.

“There is a culture of playing to win. Every action is measured in terms of intent and intensity of action, not just on result. It's fun, it is tough, but winning it together, or playing it together, even losing it together, it's fun. We want to be a place which is highly valued as a great place to work.”

And it seems to be working. Zifo has been listed as one of the great places to work for seven consecutive years. 

Hear how Prakash is building a thriving culture while growing a company that leads to scientific breakthroughs.

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Meet Grace Macharia, a speech and language therapist and founder of SLT Support in Nairobi, Kenya. She created a social enterprise with a mission to support not only her patients, but also the profession of speech therapy in Kenya as a whole. 

“In 2011 there were about five speech therapists in Kenya, and all of them were trained out of the country. Can you imagine only five speech therapists for a population of 21 million?!” she recounts. When Macharia eventually found her true career calling in speech therapy, she realized that she couldn’t deliver the kind of impact she wanted without the help of others. So, she created a business, got the training she needed to formalize her business structure and organization, and began lobbying policy makers to give the profession the recognition and support it deserved.

Not everyone is born an entrepreneur. Grace Macharia certainly didn’t think of herself that way. But she had the persistence of an entrepreneur and a deep concern for her patients, many of whom needed more than just speech therapy services. Today her company treats patients, trains new therapists, and offers a multidisciplinary, holistic approach to care that is yielding better outcomes. And she’s created an association of speech and language therapists in Kenya to support each other and lobby for reform.

Of course, Macharia is still pushing for more. Speech therapy, she says, “is a profession that still needs a lot of attention. A lot of the people who need our services actually don't get it. When we have access to all this in every county, not just in Nairobi, not in just the cities in Kenya, but in every county, and not just in Kenya, East Africa, that would be a success and a dream come true.”

Hear how Macharia got the entrepreneurial training she needed to run a business and promote her profession so that other therapists and patients succeed.

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If/Then is a new podcast from the Stanford Graduate School of Business that we think will be of great interest to Grit & Growth listeners. This episode features Stanford GSB Professor Jonathan Levav analyzing the premise, “If we want to generate better ideas, then we need to get people back to the office.”

To Zoom or not to Zoom? That is the question on many leaders’ minds, nearly four years after the COVID-19 pandemic emptied offices around the world. While remote work has become the new normal, Jonathan Levav, Professor of Marketing at Stanford GSB, believes video conferencing is no substitute for face-to-face communication — especially where creativity is concerned. When it comes to the spontaneous and collaborative nature of coming up with new ideas, Levav says, “Screens are just too constraining.”

Levav’s insights come from a research study where pairs were asked to devise alternative uses for everyday items. “Pairs that worked face-to-face generated 15 to 20 percent more ideas than pairs that worked on Zoom,” he notes. What’s more, in-person brainstorming helped people consider a wider and more diverse range of possibilities. “Working on Zoom was a double penalty,” Levav says. “Fewer ideas — and a narrower set of ideas.”

Hear about Levav’s insights and research on remote work and how to keep your creative edge in our post-pandemic world.

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Meet Sakshi Kapahi, head of Omam Consultants, an HR consultancy in India, and a mother on a mission to balance home and work life for herself and her employees. Hear about Kapahi’s journey — the hurdles and highlights — as she grew both her family and the business her father started over 40 years ago.

In India, a country where only 14 percent of entrepreneurs are women, Sakshi Kapahi has had to grapple with all the familiar obstacles that working mothers face … and then some. “You always get these questions, right? Oh, you must be working for your husband. Or you must be building this for your father or your husband. They assume there has to be a male member that will come through later,” she recounts. Having enough time for kids and business, what she calls “her two babies,” is a constant struggle. 

Kapahi says that building both a personal and professional support system is critical to juggling priorities and managing feelings of guilt. “One thing I'm still working on is you have to be kind to yourself as a woman, which is what we don't do. There's always guilt that I missed something for the team, in the office, at home. Everyone keeps saying ‘be kind to yourself,’ but nobody tells you how,” she says. Finding a female mentor with kids was incredibly helpful for Kapahi, and she strives to provide that kind of support for her employees as well, 70 percent of whom are women.

Hear how Kapahi is tackling motherhood and entrepreneurship while growing a company that does the same for other women.

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Welcome to Grit & Growth’s masterclass on friction — the good, the bad, and the ugly. Robert Sutton, Stanford professor in the School of Engineering and best-selling author, has stories and strategies to help you identify the causes of friction, eliminate it, and even learn how to use friction intentionally to create more space for success. 

Friction, according to Bob Sutton, “ is simply putting obstacles in front of people that slow them down, that make their jobs more difficult and maybe a little bit more frustrating.” Sutton has written multiple New York Times bestsellers, including The No Asshole Rule, and Scaling Up Excellence with coauthor and Stanford colleague Huggy Rao. His upcoming book with Rao is all about the friction that typically arises after companies scale, and it is appropriately titled The Friction Project: How Smart Leaders Make the Right Things Easier and the Wrong Things Harder.

Sutton’s research shows that friction often starts at the top. Luckily, he has lots of advice for how to become more aware of the power and influence leaders wield and tips for eliminating unwanted friction in your organization.

Seven Masterclass Takeaways

Adopt a trustee mindset. 

According to Sutton, “Leaders should be trustees of other people’s time.” This means not just trying to find ways of saving people's time, but also being aware of how you’re imposing on their time. 

Don’t be oblivious. 

“Leaders need to be aware of the power and influence they have,” says Sutton, because an offhand comment can send employees on a wild goose chase that costs time, energy, and money. “That’s what happens when people in positions of power…are unaware of their cone of friction.” Leaders also need to acknowledge their blind spots. Many assume that because of their success, they know everything that matters about their organization; what Sutton calls the “fallacy of centrality.” Either way, what you don’t know can certainly hurt you.

Avoid power poisoning. 

“When people feel powerful or more powerful than others they tend to focus on their own needs over others and then they act like the rules don’t apply to them,” Sutton says. Friction is almost always the result.

Embrace inconvenience. 

Leaders often get the VIP treatment. They don’t have to stand in line or wait on hold. But Sutton says that this “absence of inconvenience…is protecting you from the experience that your customers are facing.” If you don’t feel the friction yourself, how can you address it?

Play the subtraction game.

Sutton suggests approaching problems with a subtraction mindset as an antidote to what he calls addition sickness. He says, “First, make a list of stuff that's getting in the way and driving you crazy. Okay, so now what are you going to do to get rid of it?”

Fight friction as a team.

“Friction is often an orphan problem that we point at other people, and we tell them it's their job to fix it,” Sutton says. Given the high-friction nature of friction fixing, he suggests a team effort.

Remember that not all friction is bad.

Sutton acknowledges that some things should be hard, like cheating, stealing, and making stupid decisions quickly. He says “Sometimes, being fast — all that does is get you killed off more quickly. The goal of getting rid of mindless, unwanted friction is to clear the way for the things in life that are hard and should be hard.”

Listen to Bob Sutton’s anecdotes and advice on how to recognize and remove friction in the workplace. 

The Friction Project will be released on January 30, and you can pre-order copies of the book now. (https://www.amazon.com/Friction-Project-Leaders-Things-Easier/dp/1250284414)

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Welcome to Grit & Growth’s masterclass on growth mindset and psychological safety and how they can empower employees to speak up, fail fast, and fail smart — with accountability but not retribution. Sarah Soule, Stanford Graduate School of Business professor in organizational behavior, has tips and tricks for leaders to help build a culture that encourages healthy debate and out-of-the-box thinking.

Failure happens … whether you like it or not.  Yet, almost every entrepreneur would agree that learning the right way to fail is what enables businesses to succeed. But how do you create an environment where people aren’t afraid to fail? According to Professor Soule, it all starts with building an environment of psychological safety: a climate where people feel comfortable sharing their ideas and concerns and speaking up when needed without being judged or viewed negatively by the leaders when they do.

Soule encourages leaders to remember that all humans make mistakes. And in some types of work, failure is actually part of the process. However, failure is not a luxury every organization has — especially in health care — so she recommends simulating failure instead. The key, she explains, is that when we make mistakes, we learn from them and don’t hide them. Otherwise,  they’re likely to snowball into bigger mistakes. “One of the elements of psychological safety is that people on a team don't hide their mistakes. They also feel comfortable and safe to challenge their superiors, to challenge their colleagues, when they see something is about to go amiss,” she says.

5 Masterclass Takeaways 

Not all mistakes are the same.

Soule encourages everyone to “distinguish between mistakes that are made that should have been preventable — because somebody has been inattentive or has been sloppy or has just been going rogue — versus smart failure.”

Try to learn from failure. 

“When and if we do fail or fall short of what we hoped, we can learn from it. That can only happen if the team feels like it is okay to bring forward these possibilities without you judging them or firing them because they're challenging you. It’s not who failed. No blaming. But why did we fail? And what can we learn from that?” she says.

Walk the walk. Talk the talk.

Soule advises leaders to align their actions and values. “I think one of the things that's very important, particularly for a new leader in an established organization, is to come in right away and express what the values and expectations of the culture are going to be, and then to continually repeat them, and demonstrate that it’s what the leader believes.”

Strike a balance between acceptance and accountability. 

Soule says, “Leaders actually really need to distinguish between those two and not just celebrate all failure. There's got to be some accountability, right? When we have made mistakes that should have been preventable, we do need to hold people accountable for that.”

Pre-mortems can be a safe way to simulate failure.

“Pre-mortems are a structured but simple way to bring the whole team together to pretend that something has failed massively,” Soule explains. “Think very hard about what were the reasons for this failure and then brainstorm ways that those reasons could be averted as a way to prevent the failure from happening.”

Listen to Sarah Soule’s evidence, advice, and strategies for how to leverage psychological safety to increase team performance, productivity, and innovation by failing in the right way.

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Does your company have a culture where people are truly free to speak their minds … without fear of retribution? At the start of the pandemic, Elikem Tamaklo, managing director for Nyaho Healthcare in Ghana, realized that the answer was no. Hear how he changed his company’s culture and his own behavior to lead his team through COVID-19 and beyond. Also, gain strategic insights from Sarah Soule, professor at Stanford Graduate School of Business, on the process and benefits of creating an environment of psychological safety in your organization.

Psychological safety wasn’t on Elikem Tamaklo’s mind when he joined his family’s private group medical practice. But in 2019 when the pandemic hit, uncertainty, fear, and challenging conversations were the norm. It didn’t take long to realize that if his team members weren’t willing to openly share what they were feeling and fearing, then decision-making would suffer. 

Psychological safety, according to Sarah Soule, professor of organizational behavior, is a climate where people feel comfortable sharing their ideas and concerns and speaking up when needed.  Most important, they must feel like they are not going to be judged or viewed negatively by the leaders when they do bring things up. Soule says the benefits to the organization are well-researched and impressive. “Morale is higher, burnout is lower, motivation is much, much higher. People are willing to participate in decision making and that leads to better decision-making. What we see is that team performance, creativity, and resilience increase, and we get higher levels of innovation,” Soule explains.

During COVID, everything was amplified, especially for those working in health care.  The situation was made even worse when Tamaklo contracted the virus. He chose to publicize his diagnosis. “I said I would bear the risk personally. People acknowledged the bravery in sharing my COVID status and the narrative was more about people seeing that getting COVID is not your fault. So get tested,” he remembers. After much discussion, Nyaho became the first private organization to perform COVID testing.

Expressing vulnerability is one of the ways Soule says leaders can model the behavior they seek in others. She explains “The hardest thing that leaders have to do is to both model the kind of behavior that they want on the team and be sure when they invite the truth, it's authentic and people believe it.” Soule also advises leaders and their frontline managers to speak less and last, engage in active listening, and construct norms for how teams interact.

Listen to Tamaklo’s personal and company journey toward psychological safety and the challenges and benefits they’ve experienced. And get practical advice from Soule on how leaders and teams can create an open culture where productivity and innovation thrive.

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We're excited to announce that Stanford Seed has a new advisory board member: Andreata Muforo. We are thrilled to have Andreata on our team! To celebrate, we're bringing back one of our favorite episodes from Season 1, "Raising Capital in Africa: It's Not Just About the Money", which featured Andreata as a guest. Enjoy!

Original Show Notes:

Meet Elo Umeh, Managing Director and CEO of Terragon Group, a Nigerian digital marketing and data insights company, and Andreata Muforo and Ido Sum from TLcom Capital, and learn how to make the most of your fundraising efforts to successfully grow your business in Africa.

Elo never intended to formally raise money—he initially relied on friends and family to launch Terragon. But as the business grew, so did his vision, and he needed to find an investor that understood the enormous opportunity in a rapidly growing sector. Since 2016, he’s led Terragon through two funding rounds: a $5 million series A round and a bridge round of $4 million. Now a leader in Africa’s data and marketing technology space, Terragon is currently raising another $16 million for its Series B. 

Elo shares his fundraising journey, explaining that it’s not just about the money, but who provides the capital is also key. He ended up working with Andreata Muforo and Ido Sum from TLcom, a venture capital firm with experience investing in tech-enabled businesses across Sub-Saharan Africa. Their relationship demonstrates how the right investors can help your business grow and actually enhance—not dampen—the quality of your decisions as a CEO.

Andreata and Ido of TLcom also share what they look for in a company and provide tips for how you can approach your next fundraising round.

Listen to Elo’s journey and Andreata and Ido’s insights to learn how to maximize the value of your firm’s next fundraising round.

Resources:

Terragon Group: https://terragongroup.com/ 

TLcom Capital: https://tlcomcapital.com/ 

Stanford Seed: http://stanfordseed.co/Grit

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Welcome to Grit & Growth’s masterclass on spontaneous communication — those unplanned moments when you’re called on in a meeting, asked to give feedback, or introduced to a potential investor. Matt Abrahams, Stanford Graduate School of Business lecturer in strategic communications, has tips and tricks to overcome anxiety, gain confidence, and make sure you’re ready to speak when you least expect it.

Matt Abrahams speaks a lot  in public, whether he’s teaching MBAs at Stanford or hosting his podcast “Think Fast, Talk Smart.” And yet, he still gets nervous. He calls it getting the “ABCs.” “There's the affect or emotional component, the behavioral or what happens to your body, and then the cognitive part, what happens in your mind,” Abrahams explains. Luckily, he believes there are tons of techniques to manage your nerves, like holding something cold in your hands to calm you down, saying positive affirmations to give you confidence, and even using tongue twisters to both distract your mind and warm up your voice. 

Abrahams’ latest book, Think Faster, Talk Smarter, is filled with practical advice for how to prepare for your next spontaneous conversation. He says the biggest mistake people make in their communication is starting from the wrong place. “We start by saying, here's what I want to say, versus, what does the audience or person I'm speaking to need to hear. And that's a fundamental mind shift. If I don't understand from your perspective what's important for you, what knowledge you have now versus where I would like you to be, I can't tailor my message.” 

7 Masterclass Takeaways 

AMP it up. If speaking makes you nervous, develop an Anxiety Management Plan to help you overcome the nerves. 

Focus, focus, focus. Abrahams reminds us that sometimes people just want to know the time, not how to build the clock. 

Prioritize connection, not perfection. “There is no right way to communicate. There are better ways and worse ways, but there is no one right way. And when we put that pressure on ourselves to do it right, we actually reduce the likelihood that we'll do it well at all.”

Think about your audience, not yourself. “We really need to be other-focused. And the nice thing about being other-focused is not only is the message more likely to land, the other person is likely to feel more valued because you're tailoring the message to them,” says Abrahams.

Make it relevant. And connect the dots for people. “If you can make something relevant to people, it's been shown that they process it so much more thoroughly and invest a lot of effort. We assume that if I set up everything, that you'll connect all the dots, and that's not always true.”

Be clear when giving feedback.  Many leaders find giving feedback one of the hardest parts of their jobs. “When you give feedback, be very clear on what it is you're looking for. Many of us are just so frustrated, upset, at whatever's happening or not happening that we're not very clear,” Abrahams recommends.

Prepare to be spontaneous. Using common structures like “problem, solution, benefit” to tell your story can be practiced for your next spontaneous interaction. 

Listen to Matt Abrahams’ communication insights, advice, and strategies for how to think faster and talk smarter.

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Creating a compelling strategy is step number one for every business. But almost no one gets it right on the first try. Aniket Doegar and “Guns” Ganapathy, co-founders of the Indian social enterprise Haqdarshak, pivoted multiple times while remaining focused on financial sustainability and their mission: eliminating generational poverty in India through access to social security.

India, with a population of 1.4 billion, has about a billion people dependent on some form of social security, according to Aniket Doegar. And India has over 20,000 government programs. But most families are accessing only a tiny percentage of the programs they’re eligible for. “An urban family living in cities like Delhi and Bombay is eligible for about 25 to 30 programs, and all these families at any given point of time are not accessing more than 10 percent of them,” explains Doegar. That’s the problem Haqdarshak wants to solve — how to enable people in need to access the life-changing benefits they deserve. 

From the very beginning, Haqdarshak’s strategy was focused on generating revenue so the company wouldn’t be dependent on handouts or grants in the traditional nonprofit model. “It was almost an article of faith for me that scale can be achieved and lots of social problems can be addressed by thinking through a revenue model, by having financial sustainability built into the DNA of the organization,” says Ganapathy, who is not only a co-founder of Haqdarshak, but also its first investor, and formerly Stanford Seed’s regional director for South Asia.

The two assumed that building a platform for end users to access benefits would be too expensive and that government contracts would be more financially reliable. Unfortunately they weren’t, and after not getting paid, they made their first pivot. And the pivots kept coming. But along the way, they  learned — and built upon —every setback. “I think this is an important lesson for social enterprises, that you've got to remain flexible sometimes and see the way in which the market responds to what you want to do,” advises Ganapathy.

Ganapathy also warns social enterprises of the tension between financial sustainability and risk of mission drift. “It’s a challenge that most social enterprises face at some point in their journey. I think we did face this two or three years in where there was this temptation that we had this network of field agents, and we could have gone the way of adding financial products, insurance sales, things like that to the basket of goods that an agent carried, and made the organization more financially viable, but it would have meant a significant mission drift away from our original focus,” Ganapathy recalls.

Having mission-driven investors can help you stay on track. Throughout the company’s journey, Doegar reminds himself of the big picture: “Do we want to be an organization which runs after capital and does everything, or do we want to be a specialized social security organization and really build an institution?

Hear how Doegar and Ganapathy adjusted their strategy on the fly and stayed true to their foundational values, and learn where the company is headed now.

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