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FEATURE
The Thrill of the Next Big Thing
By John T. Slania Photos by Matthew Gilson
A taste for speed and quality have kept George H. Conrades, XP-28 (71), on the cutting edge for more than three decades. At 61, the chairman and CEO of Akamai Technologies shows no sign of slowing down.
George H. Conrades, XP-28 (71), has a way of ending up in the middle of the next big thing.
When he was growing up in the 1950s in Youngstown, Ohio, Conrades witnessed the birth of rock n roll, took
up drumming, and formed a garage band that performed
at high school sock hops.
When he graduated from Ohio Wesleyan University
in 1961, he joined International Business Machines as it
was beginning to flex its muscles in the fledgling computer industry. Over the next three decades, he helped establish IBMs dominance in the international marketplace, serving in several executive positions including senior vice president for U.S. operations.
Then, in 1994, Conrades joined BBN, a pioneer in
Internet technology. When BBN was acquired by GTE,
Conrades stayed aboard to help the telecommunications
giant navigate the Internet.
In 1998, he joined a venture capital firm, Polaris Venture Partners, right at the cusp of the dot-com funding frenzy.
Approaching the age when most people consider retirement, Conrades, 61, was once again offered the chance to be in on
the next big thing: running a technology company that pledged to speed the delivery of information on the Internet. He became chairman and CEO of Akamai Technologies in 1999
and led a lucrative initial public offering within six months.
I thought I was done being involved in the next big thing, Conrades said from his office, which stands in the shadow of the MIT campus in Cambridge, Massachusetts. Ive been fortunate to have been involved in a number of big things in my life, and Im getting the chance again, he said, adding that retirement is a remote possibility. I no more want to be on the back nine now than be on the moon.
To longtime friends, business associates, and former classmates at the GSB, its not surprising that Conrades continues to approach his career with zeal. Here is a grandfather who is willing to pull all-nighters with Gen-X techies to get a project done. He serves on the boards of several high-tech firms and is an active alumnus and frequent speaker at Chicago and Ohio Wesleyan. In his little remaining spare time, he races his collection of vintage motorcycles.
I think George racing his motorcycles is a nice metaphor for the way he runs his life, said Dean Robert S. Hamada. He picks things with speed. He picks things with quality.
Speed and quality were the key ingredients of Akamai, a company started at MIT. Akamais main product is a set of mathematical algorithms that speeds the transmission of
content over the Internet, helping determine the most efficient route for information delivery.
Akamai, a Hawaiian word that means intelligent, clever, and cool, was founded in 1998 by MIT mathematics professor F. Thomson Leighton and his graduate
student, Daniel Lewin. Like many start-ups, Akamai had
the technological know-how but needed an experienced
executive to run the operation.
Enter George Conrades. Around the time Akamai was founded, Conrades joined Polaris Venture Partners. When
Polaris provided $8.5 million in capital for Akamai, Conrades, Leighton, and Lewin became acquainted. Soon, they asked Conrades to become Akamais CEO.
We are a very young organization--I think the median age of our employees is 30. In an organization like that, it is critical to have a seasoned, experienced executive to run the show, Leighton explained.
When Conrades was named Akamais chairman and CEO in April 1999, becoming employee No. 50, he entered a world where his fondness for speed would be put to the test. Akamai was on a fast track to sell its products to Fortune 100 corporations and the top Internet companies, offering them a quicker way to stream data, graphics, video, and audio to customers. Akamais customer list included Microsoft, HBO, and Discovery Channel Online.
There is a lot of energy, enthusiasm, and intellect running through the company, Conrades said. It was a lot like the environment at IBM in the 60s and 70s when it was growing like a weed.
But while buttoned-down Big Blue approached its business in a deliberate manner, Conrades discovered that Akamai moved at the speed of light. He found himself immediately immersed in details of the companys initial public offering
of stock, which was targeted for October 1999.
Silicon Valley start-ups changed all the rules for how quickly a company goes public. But Akamais IPO, which
occurred a little more than a year after it was founded, was speedy even by Silicon Valley standards.
The IPO gave Akamai $30 billion in market capitalization, which the company is using to acquire other companies and create strategic alliances that will help it be the leader in data, video, and audio streaming. But the public offering also was part of a strategy to establish the Akamai name as the first mover in its market niche.
The reason we IPOd early wasnt the money. It was
the attention, Conrades said. The burst of publicity we gained by going public gave us incredible
marketing traction, and were following up with aggressive advertising and PR to build our brand.
Even while he was building Akamais reputation in the outside world, Conrades was busy trying to grow the organization internally. It required a slightly different approach than what he learned in management school, considering that Akamais staff of 1,000 are in the same age range as his five children: Liza, 35; Laura, 34; Gus, 33; Mary Emma, 22; and Anna, 19.
Im the graybeard, joked Conrades, who also has five grandchildren. But I feel and act young because Im in such a wonderful environment. Im learning as much from them as they are from me.
Conrades leads by coupling his business experience with
a team approach.
As chairman and CEO, I play three roles, Conrades said, first, to be sure we stay focused on our business and dont get distracted. Execution is everything if you want to achieve and sustain category leadership.
My second responsibility is to coordinate--to keep
hard-charging and independent-minded senior executives
all pulling in harness, he continued. We make 90-day
commitments to one another at the start of every quarter.
In front of their peers, senior managers commit to what their teams will achieve over the next three months. . . . At the end
of 90 days, we review and rate each commitment. This way, senior executives not only set their own goals, they appraise themselves in front of their peers.
Conrades calls this team effort a game of intellectual hockey, an exercise where you have to be agile, you have to be fast, and youd better be prepared to get roughed up a bit.
Sometimes Conrades must step in and referee.
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