We’ve all heard it said that the shortest path between two points is a straight line. That’s undoubtedly true, but what we often fail to realize is that the BEST path is not always the most direct or straight path. Sometimes it’s the bends and turns in the path that brings the rich experience and learning that we need the most for carrying out our life’s work.
My guest, Max Duckworth has taken his own winding path on his way to filling the important role he does now. It’s one that’s taken him from particle physics to environmental policy, to energy commodity trading, to impact investing. Max is now an impact investor and co-founder of Masa Partners, which in his words, attempts to invest in companies that make a positive impact on the world while making a profit at the same time.
Putting together the varied lessons life has to teach us as we walk our winding paths enables each of us to move into opportunities we didn’t even know existed when we started the journey, and often, the world is better for it. Join me to explore the idea on this episode.The winding road to greater #purpose, with impact #investor, @MaxRDuck, on this episode of #TheDevelopment Exponent. #leadership #development #investing Click To Tweet
Impact investing from a people perspective
Impact investing is focused on making financial investments in companies that are taking on serious problems for the betterment of the world and mankind. It aims to be profitable through investment in companies that are making a difference — not just making money. Max says that his approach to choosing the companies his investment group will fund is focused around four “P”s: Problem — People — Product and Profit, in that order.
It’s the people part of that progression that was especially intriguing to me, so I asked Max to elaborate on that piece. He says that he spends a significant amount of time assessing the founders and team of the company he’s considering an investment with. In his mind, he’s asking, “Is the group capable from a business standpoint and from an execution standpoint?” In other words, are they the kind of people who have both the skill and drive to get their product made and marketed well?
While it’s admittedly a subjective call, some of the things that go into answering those questions have to do with whether or not the team members have a personal connection to the mission. If they do, through life experience or history with the problem, they are more likely to be all in and will see the project through, and thus, create a profitable outcome.
This assessment step is something savvy leaders could adapt and tweak it to help them create mutually meaningful work engagements for their teams. Hiring and retaining people who are personally connected to the projects you’re working on could dramatically impact the meaning your team members derive from their work and fuel your organization’s forward momentum over the long haul.
When COVID hit, impact companies took the lead in caring for their people
Though small and struggling to use their limited resources well, many early-stage companies that Max works with made what I’d consider the right choice when the COVID pandemic hit.
These mostly young leaders, by and large, considered the well-being and overall happiness of their employees as one of the essentials they must maintain during the pandemic. In my mind, this is an example of leadership done right. Perhaps it’s the focus on “impact” these founders already possess that enables them to see human capital as the primary consideration for the longevity of their companies. No matter the reason, I couldn’t help but say, “Well done” when I heard this news.When #COVID hit, impact companies took the lead in caring for their #people Find out more from @MaxRDuck, impact #investor on this episode of #TheDevelopmentExponent. #leadership #development Click To Tweet
Hiring is one of the most significant growth pains of early-stage companies
As early-stage companies start to gain traction it can seem like a thousand things require attention all at the same time. One of the most crucial of the puzzle pieces that have to be sorted is hiring. Finding and hiring the right people can be a significant challenge.
There’s a need for more than simply matching the right skills and resume with the tasks at hand, which are many. It’s about drive, commitment to the cause, and chemistry with the team as much as anything else. The impact founders who keep these in clear view without caving to the sense of urgency they often feel will be able to find the people who can move their team forward, faster. It’s one example of how the creation of mutually meaningful work engagements begins at the very beginning when potential team members are vetted.Learn why hiring is one of the most significant growth pains of early-stage companies. With @MaxRDuck on this episode of #TheDevelopmentExponent. #leadership #development Click To Tweet
Outline of This Episode
- [1:03] Why a straight line is not always the best line
- [2:23] Impact investing — positive impact coupled with profitability
- [11:28] Max’s first angel investment and his foray into impact investing
- [18:10] His belief in win-win situations for life and investing
- [26:15] How decision are made regarding impact investments
- [37:01] How the COVID pandemic drove companies to get more done in less time
- [43:03] A timely example of Max’s first investment partner reaching a point of success
- [46:39] Why growth and hiring are huge obstacles for early stage companies
- [52:52] Think about the broader ramifications of your investment choices
Resources & People Mentioned
- Constellation Energy
- The Bill and Melinda Gates Foundation
- Abingdon Health – one of Max’s early success stories
- Goods Unite Us – another of Max’s supported companies
Connect with Max Duckworth
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