This is actually a very good program both for small high tech businesses trying to get started and for investors looking to invest in our state.  I am dedicating this post to share a little more about this new program in the hopes that you can pass along the information to your friends both starting new high-tech businesses and to investors who are looking to add a little venture capital to their portfolio.  Although this is a little different topic than I have written on before on this blog it is essential for us to get the word out on programs like this because these are among the businesses that will become the foundation of the future and continue to allow us to have a vibrant region in which we can build leadership and community.

An investment program like this gives the State of Minnesota an advantage in attracting additional investment in our high tech businesses and increasing the number of jobs located here in Minnesota.  The tax credit removes 25% of the risk for an individual investor and therefore helps to make Minnesota a more attractive state in which to invest.  This program and others currently in place have the potential of helping us kick start the next Medtronic, 3M, Boston Scientific, EV3 and countless other major high tech innovators who call Minnesota home.

Program Details (Investor Standpoint):

• 25% tax credit on invested amount which is refunded via individual income tax credit for qualified investors.
• Maximum credit of $125,000 per year per individual (Given 25% credit a person could invest up to $500,000 per year).
• Minimum investment $10,000
• Total program credits available — $11 Million in 2010, $12 Million per year 2011 – 2014.

Minimum Qualification for Businesses seeking angel investors:

• Be headquartered in Minnesota
• Have a minimum of 51 percent of employees and 51 percent of payroll in Minnesota
• Have fewer than 25 employees
• Pay employees annual wages of at least 175 percent of poverty level, currently $18.55 per hour. Does not apply to business’ executives, officers, board members, 20 percent-plus owners
• Not have been in operation for more than 10 years
• Not previously have received private equity investments of more than $2 million
• Not have been disqualified from investment under Minn. Stat. 80 A.50 (b)(3) Small corporation offering registration disqualifications
• Not have generated more than $4 million in investments that have received an Angel Tax Credit. The Angel Tax Credit is capped at $1 million per business
• Be certified by DEED before investment is made. The certification filing fee is $150
• Committed to engage in technical innovation in Minnesota.  The primary business activity must include one or more of the following:
  • Using proprietary technology to add value to a product, process or service in a qualified high-technology field
    • Qualified high-technology fields include, aerospace, agricultural processing, renewable energy, energy efficiency and conservation, environmental engineering, food technology, cellulosic ethanol, information technology, materials science technology, nanotechnology, telecommunications, biotechnology, medical devices, pharmaceuticals, diagnostics, biologicals, chemistry, veterinary science, or similar.
  • Researching or developing a proprietary product, process, or service in a qualified high-technology field
  • Researching, developing, or producing a new proprietary technology for use in the fields of: agriculture, tourism, forestry, mining, manufacturing, or transportation

If this sounds interesting or to learn more information, please visit the Angel Tax Credit Website, email  Angel.Credit@state.mn.us or contact Jeff Nelson at 651-259-7523.

He engaged in an email interview this week.  Here’s what he had to say about his ideas on leadership and his new work in Africa.

Politics of Creativity – Breaking the Rules with Integrity

In a recent talk you describe integrity as having three components:  a moving target, ten eyes and one heart.  You proclaim that leadership is more about who you are than what you do.  In an environment that values results, how do you advise leaders in maintaining a balance between this view and outcome-based leadership?

In business in particular near-term profitable outcomes are relentlessly in scope. In the larger context of creating new value or accomplishing an enduring mission, the consequences of one’s choices may not be readily apparent or even known.  Sometimes a leader needs to take a stand based on principle(s). When Nelson Mandela was sent off to Robben Island where he spent the better part of 27 years in prison, I doubt he was thinking “outcome-based leadership”.   Too many leaders today are driven by near-term stakeholder interests rather than deeper, more enduring values.   Be clear about your identity – who you are  – whether individual or collective (corporate). The value will follow.  There are many examples I could cite.

Connections, Relationships & Collaboration

In your work, you differentiate between connections and relationships and make some distinctions as they relate to collaboration.  How do we make choices about making connections and allocating energy toward cultivating relationships that will move our work forward?  What actions deepen relationships that facilitate collaboration?

Many people are over-connected and under-related these days. A re-framing of the collaboration discussion from quantitative terms (how many connections do I have?) to qualitative terms (how vital are my relationships?) is urgently needed.  To shift a connection to more of a relationship, I advise leaders, for example, to share discretionary information that invites a non-routine personal response, e.g. “Would you read the draft of this speech I need to give tomorrow?  I’d appreciate your feedback.”  Or be present and listen when not required (or not leading the meeting).  Practice skillful inquiry. That is one of the most powerful ways to build relationships.  Powerful questions bond more than answers.  I trust someone who asks good questions much more than someone who has all the answers.

Relationships alone do not, however, make for good collaboration.  Most everyone has experienced feel-good relationships, at work or otherwise, which lead nowhere when it comes to accomplishing a shared goal or vision.

Collaboration has an explicit desired outcome and a defined end.  Relationships can be perpetual and self-renewing.

What is moral imagination?

In today’s global environment we must be open to alternative points of view and experiences which are essentially and substantially different than our own.  That sometimes requires active imagination for starters.  We all have our blind spots, whether we acknowledge it or not.  No one has had more influence on my thinking about this than Mary Catherine Bateson, the anthropologist and author.

Furthermore, working extensively with research scientists and engineers, I am acutely aware of how they create tomorrow’s world today, including dilemmas we simply have not adequately considered.  Some moral imagination is required by each of us as we continue to weigh how best to respond to the Gulf Oil spill – something seemingly few, if any, have previously imagined.

Work in Africa

You are doing some consulting with the African Leadership Academy, an educational institution in Johannesburg, South Africa, dedicated to developing the next generation of African leadership with students from across the continent.  How is this work informing your view of leadership?

Leadership is not a function of age nor position, though respect for the wisdom of elders is at risk of becoming a cultural artifact.  The influence of richly diverse tribal cultures and distinctive community norms needs to be acknowledged, even if not honored.  This is true not just on the African continent but throughout the world.

The social entrepreneurial spirit of the students is exemplary and inspiring. Grow Green Itsueng is but one of many student-led community projects.  I accompanied one project team to this poor rural “suburb” of Johannesburg where they are planning and planting community gardens which promise a more sustainable food supply.

Western white male leadership has its distinctive biases and filters; failure to acknowledge that limits our capacity to learn and grow as global leaders.

Leadership can indeed be learned but teaching it is tricky.  We can facilitate learning but be cautious about telling someone what he or she must do to lead.

Having worked on several such plans in my career, I have heard this question over and over again. It really feels like a cop-out question to me. The question may be innocent enough, may be a need for greater clarity or a true lack of understanding, but it is always extremely irritating. I know what the answer to this question is. I have always known the answer to this question. I learned the answer from a captain of industry who granted me fifteen minutes on his schedule to present multiple plans for a committee he chaired.

After carefully outlining the Plan A, budget, strategy and key players, Mr. Campbell stopped me saying, “I don’t need to hear Plan B; your first plan seems sound and manageable. We should go with the strongest plan.” You might be thinking that Mr. Campbell was watching the clock and just wanted to rush me out of his office, which crossed my mind too, except that he then proceeded to spend the next hour and a half contributing his considerable experience and company connections and resources to kick off my “best plan”.

It’s a simple as that. We don’t need to waste time and energy making alternate plans. We need to put our best plan forward, knowing that we used the greatest combination of research and resources available to us at the time. The entire point of making a plan is to assure that the best actions are taken. To needlessly delay action by creating multiple plans to achieve the same result is wasteful. The irony is that usually when I am asked about a second plan of action, the question is asked in the name of mitigating risk. If a plan is carefully created risk has already been factored in, delaying the action steps to rework the same data set usually just delays the desired results.

One day I may have the nerve to boldly respond, “there is no need for a plan B” when a board member, or non-planning committee member sandbags a presentation at the end of a long process that includes plenty of by in from stakeholders. Hey, what do you know, I think I’ve got my plan A for this week.

There is a time to fish and a time to cut bait. (Credit to Dad’s everywhere, on that last quote.)

Or did I?  I write this bleary-eyed from lack of sleep, wiping doughnut crumbs from my beard, having just canceled my next training appointment to attend a client meeting.  I work with ethical leaders for a living, and one of the lessons we learn together is that we must care for ourselves in order to be of service to others.  Apparently I need a refresher today.

Not all days are like this.  Indeed, I do have a relationship with a trainer, a physical education genius (and a truly inspiring guy) named Michael Gayle, and indeed that work is transformative.  I exercise several times a week, fewer this week.  I eat far fewer donuts, and much more yogurt and fruit, than I have at any time in my life.  I run. I can touch my toes, for the first time in years.  I am learning to be an athlete.   These practices boost my productivity to the extent that I commit to them.  Just not today.

I learn two things from this.  First, two out of three might not be enough (sorry, Meatloaf).  Maybe I do need to get more sleep, even if I don’t want to.  There’s plenty of research demonstrating that truth, and if I were better rested I could find those articles and read them.

Second, real personal change takes time, patience, and persistence.  As I have been told, “Never, never, never give up.” I can go for a walk this afternoon, and I can make better choices for lunch and dinner than I did for breakfast.   Changing our lives is not like carrying a crystal vase through the world, but rather like carrying a red rubber ball.  We know we will drop it, but we also know it will bounce and that we can pick it up from there.

Early to bed tonight.  Tomorrow is another day of carrying that ball.

It’s hard to put the experience of college into proper perspective.  Yes, it’s only four years.  Yes, my college friends are spread out across the country so I don’t interact with them regularly.  But while the day-to-day presence is long gone, and I admit I have probably forgotten 90 percent of the facts and figures that I learned in my classes, in some ways my college experience is more vivid, more meaningful, and more of an influence on who I am today, than just about any other four-year period in my life.  Much of what I bring to my life at work, at home, and to the community at large, took root on that campus, with the help of that group of friends.

A four-day reunion isn’t nearly enough time to “re-live” it all, but we did our best.  I brought my family to “Hoagie Haven” for a cheesesteak.  I reminisced about the “good old days.” We listened to some great 80s cover bands (I still think 80s music totally rocks).  And I explained some of the unique traditions at Princeton.  (My daughters thought the tradition that you can’t walk out the front gate at the University until you graduate was particularly strange.  Molly defiantly walked through once.  Already a rebel!)

The most meaningful moment of reunions is the big parade… or the “P-rade” as they call it.  This is when alumni and their families walk a parade route through campus, oldest to youngest, dressed in frightfully gaudy orange and black costumes, being cheered for wildly by the other classes.

Not only is the P-rade a great community building event, it is also a walking history lesson.  This year there was a man who came back for his 85th reunion!  He rode on a golf cart dressed in an orange and black blazer, carrying a tiger cane.  My mind raced back to 1925 and imagined what life was like when he first exited the front gates at graduation.

Many marchers carried signs about what was happening during their college years:  wars, civil unrest, the first man on the moon, and, of course, in the case of my class, Milli Vanilli (Oh, and the fall of the Berlin Wall).

As they marched, the all white, male classes slowly started to add some diversity.  The class of 1977 suddenly included women, who handed out stickers touting, “30 years of co-education!”  As my class joined the parade, we walked past the younger and younger graduates and finally through the celebrating class of 2010, who cheered for us with the same sense of history that we had for those before us.

It’s become a cliché to say that college “teaches you how to learn.”  But that’s only part of the equation.  You learn good work habits and analytical skills.  You learn from your professors and advisors.  But for me, some of the most valuable learning came from my classmates.  College exposed me to people from across the country, and around the world.  We stayed up late together, sharing experiences, talking about politics, history, art, music, beer.  We sometimes had heated debates but they always ended in mutual respect and often in laughter.  (To this day I still smile thinking back on one Republican friend’s spot-on impressions of Michael Dukakis).  The perspective I have and my appreciation for other people’s views grew from these four years.

As this year’s graduating classes head out to the world, amidst oil spills, wars, staggering unemployment, and intolerance, I hope they take with them a similar sense of curiosity and perspective.  And I hope their generation will have more success than ours has had in solving these issues, so in 2075, when I’m back for my 85th, riding my solar powered hovercraft, we’ll have more to celebrate than a reunion.

I recognize it is hard for me to commit to less.  I have improved at saying no to some requests, but I know I will usually be over committed.  So if I am going to continue to over commit that leaves focusing on productivity.  There are many different tools and techniques people have for improving productivity – improve your skills, time management, prioritization, setting goals and objectives, making lists, enjoy what you do, positive attitude, multi-tasking/focus on one-task, remove the clutter, first things first, staying organized, effective communication, using technology, balancing lifestyle, delegation, etc.

I believe all of these can contribute to improving your productivity.  However, one item that isn’t talked about as frequently, but is starting to, is managing your energy level.  Most prioritization techniques will say to work on your most difficult tasks during the time of day when you have the most energy.  Instead, how about working on increasing your endurance and energy levels for throughout the day and week?

The first time I heard of this concept was a couple years ago on an audio interview in Success Magazine with Dr. Mehmet Oz.  Basically, he discussed how important it is to your health to effectively manage your energy levels.  Last week I read that Tony Schwartz just released (5/18/2010) a book, The Way We are Working Isn’t Working, which is based on his The Energy Project.  Honestly, I haven’t had a chance to review this material closely, yet.  Have you?

What I have found is that when I manage my energy levels effectively, my productivity increases dramatically.  I think more clearly and I am much more pleasant to be around (not so crabby!).  With all the commitments and responsibilities most of us have, not operating at full capacity is very common.  But just think how much you get done when you feel energized.  How often do you feel this way?  Most days?  Once in awhile?

There are three areas I am continually monitoring in regard to my energy level:

• Sleep – Right or wrong, I consistently need about 7 ½ hours of sleep each night.  Wish I needed less, but no such luck.

• Nutrition – Garbage in, garbage out.

• Exercise – I don’t hate it, but I don’t love it either.  Just have to do it.

Do you focus on managing your energy level?  How do you do it?  Love to hear your thoughts.

Surely the image is overwhelming due to the massive amount of data it contains, and it is also overwhelming because the BP oil spill making its way to the gulf coast has been on my mind a lot already.

With every failed attempt to literally “stem the tide” transporting the massive oil spill my thoughts grow darker and darker. It seems the price we are paying for oil (both collectively as a society as well as individually) is creeping steadily upward. I believe in a live and let live approach to most personal choices that I face in life. I choose to drive a compact car. My neighbor’s car doesn’t fit in his garage. I choose to live close to where I work. I have a sister who routinely drives across county. I choose to embrace a lifestyle of moderate consumption of resources and recycling. I also am keenly aware that my choices are not popular or mainstream lifestyle choices.

So when, and maybe a better question, at what cost would less consumption of even one resource—namely oil—be the obvious choice for my friends toiling back and forth in vehicles the size of a mini bus on their hour plus commutes? Or does the rounding error of personal vehicle oil consumption even make a dent?

The American consumption of oil has been fodder for tycoons, terrorists, peace activists and politicians. We Americans consume more than our fair share of global resources. We have built empires, gone to war and definitely elected people into office in the name of oil. We are bonded together in worry over the scarcity of the remaining oil on the planet. We cheer and jeer “Drill Baby Drill”. And still the giant wave of oil creeps toward the already battered coast.

As we approach the five year anniversary of the Katrina disaster I find myself awake at night concerned with community larger than just the city where I live and work. I think about the same volunteers who picked up hammers to rebuild homes in New Orleans now wading into mucky beaches to rescue wildlife. I think of the employers who will grant employees paid time off to help with clean up efforts on top of the rebuilding efforts in the gulf and the employees who will spend precious family vacation time in this noble cause. I am proud that all of these people are part of my community. But the dark thoughts are still with me. Is my community lacking the type of leadership that could prevent the need for all of this activity?

One of my early posts on the Leadership and Community Blog covered the first TEDxTC event.  This last week they held their second event and it was as good or even better then the first.  A true sign of an outstanding event is when people stay around afterword to talk with each other and share ideas.  In the case of TEDxTC the main event, which was attended by almost 500 people, concluded around 9:00 pm and my guess is that there were still about 100 people talking when I left at 10:45 pm – A True Success!

This illustrated to me that people in our community are looking for any opportunity to share ideas and just talk with others about changes each of us can do to make a difference.  The entire theme of TED is to get the word out on “Ideas Worth Spreading”.

Each and every one of us has a unique story which we must start spending more time telling.  We need to share with each other the ideas we have seen that work and ask questions on those areas we want to learn more about.  Too often we feel like we can’t do anything until we have the perfect answer.  The reality is if we wait for the perfect answer we most likely will never move.

The key to our ongoing success is to keep making incremental change and learn from it instead of never moving because we are looking for the silver bullet that doesn’t exist.  Many of the most complex problems are interrelated with countless other issues in such a way there is no way to decide up front which is the first lever we should pull.

The key call to action of this post is to go out, tell your story and share your thoughts on something you have been thinking about.  This act seems so basic but it is what truly brings about change because more people are learning of the idea and also helping you refine it along the way.  Keep watch for these opportunities to share your story, experiences and ideas with as many people as you can.  Remember Margaret Mead’s quote which is as relevant today as it was when she first said it  – ”A small group of thoughtful people could change the world. Indeed, it’s the only thing that ever has.”

Build Relationships by Listening to Stories

Each and every person has a story to tell.  It doesn’t matter if they are the CEO of a company, community volunteer, retiree, out of work employee, or an elementary school kid.  By spending time listening to people’s unique stories, you will be able to learn much about their interests, passions, and dreams.  Often times we are so eager to find out where a person works or what their title is in their profession that we miss the true person under the surface.  We are all so much more than can be summed up by a title or a place of employment.

CHALLENGE: Introduce yourself to five people, but each time you must uniquely describe yourself.  Most people will tell the first person they meet their role and company — “I am a software developer at XYZ Company.”  Where it gets harder is with persons two through five, as you will have to reach into yourself to figure out some other unique thing to say.  By the time you get to person three, you will have a clearer vision of your true passions.

As I personally do this exercise I get down to the phrase, “I am a dot connector.”  This describes a completely different component of my life that you would not know from my regular profession while igniting your interest in wanting to know more.

One of the biggest mistakes people make, in my opinion, is immediately making an internal calculation of a person and how they might be able to help you today.  In my experience it is far more valuable to create ongoing relationships through genuine interest in the other person instead of the superficial interest in what they can you do for me.  It is amazing how small a world we live in and how often we can learn the most profound lessons from those that we least expect.

Be Involved

The amount you can learn about others, the community, and yourself by being involved is remarkable.  First off, the most important thing about being involved is that you choose something tied with your passion.  Only you can know what gets you excited and energized, and if you choose an activity that you have passion for you will be outstandingly successful.  For some people it is volunteering, for others it is serving on a board or running for elected office.  The key is to take that first step to be involved and the impact you will make on that organization will often far exceed what you thought possible.  Be involved with all of your energy and excitement and make a difference.  When you get to a point when you’re losing energy and you are no longer looking forward to being involved, it is more than likely time to move onto the next opportunity.  A wise person once shared with me a thought that will always stay with me — As you get more involved in the community you will be asked more and more to get involved with different organizations; remember it is always fine to say no if it isn’t a good fit and you lack the energy since by saying no you are giving someone else the opportunity to say yes.

CHALLENGE: Examine the organization you are currently involved with and ask yourself if you still have the energy, excitement and passion you did when you first started.  If you don’t, think about what might be missing and create a plan to re-energize, or consider moving to another opportunity to give someone else a chance at this opportunity.  If you are not currently involved, spend some time looking at organizations where you can share your passion and give that new group a try.

Try something New

It is so easy to fall into a routine whereby you do the same thing over and over.  Force yourself to try one new thing each year that will stretch you in new ways, broaden your perspective, and open up new opportunities.  This new activity should be considerably different from your regular routine in order to shine a new light on an area that you have not explored in the past.  Examples could include taking a creative writing class, participating in a community leadership program (Humphrey Policy Fellows, Leadership Twin Cities, FBI Citizens’ Academy, etc), or teaching a class on a topic you enjoy.  I started following this advice as I left undergrad, and it has become a core value that I strive to meet each year.  The experiences are amazing, and often it is truly remarkable how after going through an activity you find ways to relate it back to your regular occupation.

CHALLENGE: Identify one new activity that isn’t related to your regular work and go give it a try.  It will have the most impact if it is something that will stretch you a little and broaden your perspective.  Share your experience with friends and encourage them to also try something new!

Leaders are transformative and following is always a voluntary act. Managers are paid to get things done, they like to site orders from their own boss as a motivational technique. Leaders do not have subordinates – at least not when they are leading. Many organizational leaders do have direct reports, but only because they are also managers. But when they lead, they have to give up formal authoritarian control, because to lead is to have followers.

Who do you work for? A leader or a manager and who would your subordinates prefer to work for? Even better who do you work with?