What is a CEO-a-thon?

Portfolio companies of OVP know (and perhaps dread) this annual event.  However, we look forward to it eagerly.  It comprises three days in the first quarter every year where we have every CEO of ours stand up and deliver a one hour summary of where they've been, where they are going, and why we should still feel great about our decision to invest. Every hour, on the hour, another one steps up to the podium. On one hand, there is nothing quite as exhilarating as seeing all these bright, motivated leaders wax passionately about their companies.  On the other, there may be no more high stakes event for these folks, post our initial investment.  

That is because while we are hearing each one individually, by putting them all in such close proximity in time, we have the opportunity to compare and contrast.  Who really has a handle on their business?  Who seemed to not quite know where they were headed?  Who exuded the leadership qualities needed to attract and retain a killer team?  Who gave us pause to think, "Is that the best we can do?" Who took responsibility and was clearly ready to be held accountable for their firm's performance?  Who tried to pass the buck?

• We've been doing this now for a number of years, and some consistent patterns have emerged:
• We always feel better about our portfolio after the session than we did before.
• We always seem to have one CEO (out of about 30) who commits seppuku by clearly demonstrating that he or she doesn't get it.
• Our "red shift" report (remember how as stars go away from you, light shifts to the red end of the spectrum) shows that essentially everyone missed their plan for last year. But, by gosh, they are sure they will make the new plan this year!
• Somewhere between 2 and 5 companies jump out as, "Let's back them to the hilt!  How can we help them grow even faster?"
• Somewhere between 2 and 5 companies jump out as, "Ouch, that one's not going anywhere.  How do we find the dog a home before its fleas bite us?"

Of course, whether you are an OVP portfolio company or not, there are some generic lessons to offer here:

• As a startup leader, you are always on the bubble and need to always be on your game - even among your most ardent supporters.
• If you can't articulate your company's value, your competitive position and your operating plan clearly, and back it up with real data and substance - you are in trouble.
• Those leaders who own their performance, and own up to what hasn't gone right as well, have credibility that gives them more latitude than those who duck and cover.
• Those leaders who make an annual plan that they then make, rather than getting way out ahead of themselves, have credibility that can translate into real dollars of support.

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