by Anthony K. Tjan | 10:23 PM May 18, 2009
One of the most enjoyable parts of writing my blog is when I have the opportunity to interview leaders with great experiences and wisdom to share. Recently I had the chance to speak with one of our firm’s brain trust advisors, Joe Grano, on a range of topics from small business investments to managing in a time of crisis. Joe currently runs an investment firm, Centurion Holdings and prior to that served as Chairman of UBS Financial Services (formerly UBS PaineWebber). Additionally, he fought in the Vietnam War as a Green Beret.
Tony Tjan: Joe, can you please start off by giving some background on yourself.
Joe Grano: I started my career at Merrill Lynch, where I eventually headed the whole retail system of about 20,000 employees. I later became President of Paine Webber and, after that, CEO of its holding company. I left in 2004 to start Centurion Holdings to invest in and advise high growth private and public companies.
TT: What are the key differences between what you have done in the big company world versus the smaller, high-growth, private companies in which you are currently involved?
JG: The management doctrine really doesn’t change between small and large firms: the fundamentals of how you approach everything are basically the same. That said, small companies come to us because they don’t have sufficient managerial acumen or enough capital to make the leap to the next level.
TT: Let’s zoom in from the macro view and look at what you do day-today. How does the economic climate affect your work?
JG: With regard to the companies I advise, valuations have changed a lot. You can’t just walk into a VC and think your idea is worth $20 million. Investors are holding on to cash and they have a lot of options on what to do with the cash.
TT: What are you telling your portfolio companies to do?
JG: The most important thing is to have enough cash flow to survive for the next two years. Maintain your value proposition to your customers and cut some investment if you have to.
TT: Joe, as both a Green Beret and a business leader, you are particularly well-equipped to manage in a crisis. Give us advice on managing in a crisis?
JG: The most important thing is the reaction: instead of finding fault, figure out the solution first. Oftentimes the only person who can fix the problem is the one who made it, so looking for culprits just drives people into foxholes.
Second, excellent communication skills are critical. People retract in a crisis and need a leader to be calm, concise, and reassuring.
TT: What’s the most challenging crisis you’ve been through?
JG: Personally, it was recovering from the war with 60% of my body in disability from an explosion in Vietnam.
TT: You are working on a book about dealing with crises. Give us a synopsis of the themes in the book.
JG: Of course. Since my work has forced me to sacrifice family time, I wanted to give my son a diary of life experiences for his high school graduation gift. I realized that I should share the material with other young people and a book was an obvious way to do that.
The book covers my leadership experiences during crises, like the Russian default in ’98, and the proven management principles you must follow. I also discuss organizational hierarchy and why the secretary is just as important to the firm as the chairman.
TT: On that subject, do you think leadership can be taught?
JG: I have a chapter in the book called “Are leaders born or made?” Good managers can be trained to be adequate leaders, but the great ones are forged by their environment and their DNA.
TT: So, who inspires you?
JG: To be honest, almost everyone inspires me. I have just as much fun talking to the gardener as other CEOs. I’ve never met anyone who I couldn’t learn from, and when I approach relationships with that mindset, they are always inspirational.
ANTHONY K. TJAN
Anthony Tjan is CEO, Managing Partner and Founder of the venture capital firm Cue Ball, vice chairman of the advisory firm Parthenon, and co-author of the New York Timesbestseller Heart, Smarts, Guts, and Luck (HBR Press, 2012).
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