By: Brianna Valleskey
Dug Song has been hacking since he was eight. The 42-year-old started three Internet security companies, survived the dotcom bubble and absolutely loves skateboarding. Those two sentences, alone, are pretty awesome. But he’s also the co-founder and CEO of DUO Security, one of the fastest-growing SaaS providers in the world.
I was fortunate enough to catch Dug at a fireside chat via Startup Grind Detroit this week. The event was hosted at the Bamboo Detroit coworking space, so naturally the conversation geared toward entrepreneurship, startups and growing businesses. Dug’s insights were candid and refreshing. No buzzwords. No growth hacks. Just honest and concise advice based on the lessons he’s learned from building multiple businesses. Below are three imperative elements of successful business growth he talked about during the event.
3 Critical Elements of Healthy Business Growth
Purpose: Thoroughly understand what you’re trying to do.
Security is one of the biggest global issues of our time. And because security can be painful and difficult to use, Dug explained, many companies (big and small) lay below the security poverty line. Most companies have the financial resources to acquire security software. What they lack are the human resources to manage it.
“We have a mission of democratizing security,” Dug said. “We think security can’t be effective unless it’s easy.”
That’s why DUO built a world-class security platform that people actually enjoy using. Dug used to be an open source developer, even though he had a full-time job. But he created open source code in his free time because he believed that everyone should have access to encryption. It’s his purpose. And DUO is built around other people who share that purpose.
DUO further democratizes security by sharing educational content for free. Anyone can easily access the eBooks, videos, infographics, events and more on the website. That’s part of the DUO sales methodology: Help, help, sell. Team members go out of our way to be helpful with people before they even try to tell them about what DUO offers.
As a company, DUO understands why it exists. The team members are eager to work together toward their mission of making security easier to use and more accessible. As Robert Baratheon puts it in the first season of Game of Thrones: “One army, a real army, united behind one leader with one purpose.” That is the foundation of a strong business.
Community: Bring people together. Help them grow.
Fast-growing businesses must think hard about the composition of the team. No football team would recruit only running backs. That’s why Dug and his team put a lot of consideration into assembling employees with diverse backgrounds and skill sets. He said they work hard to ensure every hire is additive in some unique way.
More importantly, the leadership focuses heavily on how they can help employees reach their professional goals. How does DUO fit into the story arc of their careers? Managers have weekly one-on-ones with employees to discuss how things are going with them, how the company is doing and how DUO is helping their career.
“We just have a bunch of systems to try and keep track of someone’s career at DUO,” Dug said. “But if someone decides they want to do something else, it’s no sweat. We cheer them on.”
It was at this point during the fireside chat that I decided working at DUO would be awesome (Note to self: Check out DUO job openings online). DUO also borrows organizational learning activities from agile development. Specifically, retrospectives. Teams get together on a regular basis and discuss what’s working, what’s not, what should they try next, etc. It’s also an opportunity for them to give shoutouts to other team members for doing great work. They open and close each meeting with a few minutes of peer recognition.
The final piece of community building Dug mentioned was a board report he puts together with his team. Every six weeks, each of the functional team leaders write down all their plans, successes and problems they’ve experienced over that timeframe. This process allows them to document every major decision, every success, every failure, every learning. And he doesn’t just share it with the board; the entire company has access to the document. Their community shares collective knowledge.
“If you don’t know where we’ve been, you don’t know where you’re headed,” Dug said.
Culture: Focus on passion, not payouts.
Starting a company is hard ― any entrepreneur can tell you that. Every day is either the best or worst of your life. When DUO started, Dug explained that it was just him, his co-founder Jon Oberheide and a stuffed tiger (Note to self: Ask Dug about stuffed tiger). He related building a company to skateboarding: 80 percent is falling on your face and then getting back up to try again.
“Any kind of exponential growth comes with the long, flat part of the hockey stick where you’re just grinding and hope you don’t die,” he said.
But DUO grew and made it past its first few years, which (statistically speaking), means a company will likely survive. Dug credits the company’s purpose, community and culture for making it through those years. Note that when Dug says “culture,” he’s not talking about ping pong tables and beer Fridays. Real company culture is how people treat one another; how they work together to achieve a goal. Although Silicon Valley tends to fetishize failure, Dug added that there’s a certain degree of ambient failure that DUO wants to see at the company.
“If people try things and nothing ever goes wrong,” he said, “we aren’t trying hard enough.”
A couple people asked Dug if there was in IPO in the future for DUO, but he seemed more interested in continuing to grow the company than looking to exit. This isn’t his first rodeo. Building a great company is hard when you haven’t practiced building crappy ones. Dug answered the IPO question by saying that entrepreneurs should get some experience building companies that get increasingly bigger and broader in scope and scale. This hinted that DUO is aiming for more than just profit. The company’s passion for genuine company culture and healthy business growth proves it.
I’ve been to a lot of startup events where entrepreneurs share their wisdom, but I’ve never been quite as impressed as I was at this event. I look forward to watching DUO continue to grow.
P.S. Here are some of my recommendations for books on being an entrepreneur and leader...
Fearless Thoughts are my insights on marketing, entrepreneurship, growth, mindfulness, creativity and whatever else comes to mind on any given day. Writing is how I make sense of the world.