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What leadership lessons can we take away from the downfall of Theranos? originally appeared on Quora: the place to gain and share knowledge, empowering people to learn from others and better understand the world.

Answer by Robert Glazer, Founder and CEO of Acceleration Partners, on Quora:

Theranos was a company positioned to revolutionize blood testing. Just a few short years ago, the company was hailed as Silicon Valley’s next great “unicorn.” Investors valued it at $9B, making Theranos’ founder and CEO, Elizabeth Holmes, the youngest woman self-made billionaire, at least on paper.

Holmes’ image blanketed the cover of major business magazines where she often sported her trademark Steve Jobs turtleneck, evoking comparisons between the two leaders. Apparently, they also had a shared love of secrecy.

Two weeks ago, Theranos quietly announced that it was shutting down its operations and Holmes is facing criminal fraud charges along with another key executive. She’s accused of defrauding investors, doctors and patients and is barred from serving as an officer or director of a publicly traded company for the next decade.

So, what happened?

How did a company that raised more than $700 million, with promises to revolutionize blood-tests by using just a few drops of blood, fall so spectacularly from grace?

There is a lot to the story, which has been covered in the bestselling book Bad Blood, however here is the very high level version.

As Theranos progressed from concept to reality, the technology didn’t work as planned. Instead of coming clean, Theranos’ leadership, led by Holmes, chose to exaggerate – and outright lie – about the technology. This included running their blood test on traditional equipment, claiming it had been done on their machine.

Theranos’ story is almost identical to the circumstances that led to the Volkswagen’s diesel engine scandal.

Was it massive hubris? A crippling fear of failure? Deliberate deception?

Perhaps we’ll never know the underlying why behind it all, but we can take away a few leadership lessons from it beyond the obvious issue of Holmes’ integrity.

1.Don’t over promise and under deliver.

Over-promising is something of an occupational hazard for leaders of fast-growing companies. While a promise of great things is by no means terrible, it’s the under-delivering part that is problematic. Once a promise is on the table, it creates serious pressure to meet goals, potentially unrealistic ones. That’s the danger zone.

Before long, poor choices are being made as are claims that border on fiction. The line between aspirational thinking and truth begins to blur. By all means, set big, hairy, audacious goals. Just make sure to keep a sharp eye on progress and keep your ego in check if outcomes aren’t as audacious as you had hoped.

In high pressure situations, it’s all too easy to get caught up in our own vision – however blurry– and “tweak” the facts to support our goals.

2. Trust but verify.

It’s amazing how many smart people will jump on a bandwagon just because it’s full of other smart people. Theranos had no shortage of star power. Both Secretary of Defense, James Mattis and former Secretary of State, Henry Kissinger, served on its board. But did they or any other powerhouses independently corroborate the company’s claims before joining up? Apparently not. Google Ventures, who passed on investing, actually sent a venture capitalist to a Theranos’ Walgreens Wellness Center to take the revolutionary pinprick blood test and noticed they asked for far more than a prick.

In our fast-moving society, it’s critically important to do your own due diligence. Following the herd might get you trampled.

3. Build a team of dissenters.

As I mentioned in last week’s Friday Forward, “Respectful Disagreement,” it’s critical that we have people in our life and on our professional team who are willing to disagree and push back. Holmes started down a path of lying and covering up poor results without anyone willing or able to stand up and challenge her decisions. She was known for hiring people close to her and insisting on extreme secrecy and security of information.

Theranos’ downfall is yet another example where the cover-up is worse than the crime. Holmes may not have set out to deceive, but that doesn’t matter anymore. What the situation reveals is how a few seemingly little lies can quickly evolve into something much bigger, ruining careers and reputations in the process.

The path of no return is one every leader should strive to veer from. But if you do find yourself on this path, remember… you’ll be more valued and respected for taking responsibility and owning your failures.

This question originally appeared on Quora – the place to gain and share knowledge, empowering people to learn from others and better understand the world. You can follow Quora on Twitter, Facebook, and Google+. More questions:

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What management lessons can we eliminate from the failure of Theranos? initially appeared on(****************** )Quora: the location to acquire and share understanding, empowering individuals to gain from others and much better comprehend the world

Response by Robert Glazer, Creator and CEO of Velocity Partners, on (****************** )Quora:(************ )

Theranos was a business placed to change blood screening. Simply a couple of brief years earlier, the business was hailed as Silicon Valley’s next terrific” unicorn.” Financiers valued it at$ 9B, making Theranos’ creator and CEO, Elizabeth Holmes, the youngest lady self-made billionaire, a minimum of on paper.

(************ )

Holmes’ image blanketed the cover of significant company publications where she frequently sported her hallmark Steve Jobs turtleneck, stimulating contrasts in between the 2 leaders. Obviously, they likewise had a shared love of secrecy.

2 weeks earlier, Theranos silently revealed that it was closing down its operations and Holmes is dealing with criminal scams charges together with another crucial executive. She’s implicated of defrauding financiers, medical professionals and clients and is disallowed from acting as an officer or director of an openly traded business for the next years.

So, what occurred?

How did a business that raised more than $700 million, with pledges to change blood-tests by utilizing simply a couple of drops of blood, fall so amazingly from grace?

There is a lot to the story, which has actually been covered in the successful book (**************************** ) Bad Blood, nevertheless here is the really high level variation.

(************************ )As Theranos advanced from idea to

truth, the innovation didn’t work as prepared. Rather of coming tidy, Theranos’ management, led by Holmes, picked to overemphasize– and straight-out lie– about the innovation. This consisted of running their blood test on standard devices, declaring it had actually been done on their device.

Theranos ‘story is nearly similar to the situations that resulted in the Volkswagen’s diesel motor scandal

Was it enormous hubris? A debilitating worry of failure? Purposeful deceptiveness?

Maybe we’ll never ever understand the underlying why behind everything, however we can

eliminate a couple of management lessons from it beyond the apparent problem of Holmes ‘stability.

1. Do not over pledge and under provide.

(************************ )Over-promising is something of an occupational danger for leaders of fast-growing business. While a pledge of terrific things is by no ways horrible, it’s the under-delivering part that is troublesome. As soon as a pledge is on the table, it produces severe pressure to satisfy objectives, possibly impractical ones. That’s the risk zone.(************ )

Eventually, bad options are being made as are claims that verge on fiction.

The line in between aspirational thinking and reality starts to blur. By all ways, set huge, hairy, adventurous objectives. Simply ensure to keep a sharp eye on development and keep your ego in check if results aren’t as adventurous as you had actually hoped.

(************************ )In high pressure circumstances, it’s all too simple to get captured up in our own vision– nevertheless blurred– and” modify” the truths to support our objectives.

(************************ )(******************************* )2. Trust however validate.

It’s fantastic the number of clever individuals will get on a bandwagon even if it has lots of other clever individuals. Theranos had no scarcity of star power

. Both Secretary of Defense, James Mattis and previous Secretary of State, Henry Kissinger, served on its board. However did they or any other powerhouses separately substantiate the business’s claims prior to enrolling? Obviously not. Google Ventures, who handed down investing, in fact sent out an investor to a Theranos ‘Walgreens Health Center to take the advanced pinprick blood test and saw they requested for much more than a prick.

In our fast-moving society,(************************** )(**************************** ) it

‘s seriously crucial to do your own due diligence. Following the herd may get you stomped.

(************************ ) 3. Develop a group of dissenters. (******************************** )

As I pointed out in recently’s Friday Forward,” Respectful Argument, “it’s important that we have individuals in our life and on our expert group who want to disagree and press back. Holmes began down a course of lying and concealing bad outcomes without anybody ready or able to stand and challenge her choices. She was understood for working with individuals near her and demanding severe secrecy and security of details.

(************************ )Theranos’ failure is yet another example where the cover-up is even worse than the criminal activity. Holmes might not have actually set out to trick, however that does not matter any longer.

What the circumstance exposes is how a couple of apparently little lies can rapidly progress into something much larger, messing up professions and track records at the same time.

The course of no return is one every leader needs to make every effort to drift from. However if you do discover yourself on this course, keep in mind … you’ll be more valued and appreciated for taking duty and owning your failures.(***************** )

This concern initially appeared on Quora– the location to acquire and share understanding, empowering individuals to gain from others and much better comprehend the world. You can follow Quora on(************************************ )Twitter, Facebook, and Google+ More concerns:

” readability =”119
99610212434″ >

What management lessons can we eliminate from the failure of Theranos? initially appeared on Quora : the location to acquire and share understanding, empowering individuals to gain from others and much better comprehend the world

.

Response by Robert Glazer , Creator and CEO of Velocity Partners, on Quora :

Theranos was a business placed to change blood screening. Simply a couple of brief years earlier, the business was hailed as Silicon Valley’s next terrific “unicorn.” Financiers valued it at $ 9B, making Theranos’ creator and CEO, Elizabeth Holmes, the youngest lady self-made billionaire, a minimum of on paper.

Holmes’ image blanketed the cover of significant company publications where she frequently sported her hallmark Steve Jobs turtleneck, stimulating contrasts in between the 2 leaders. Obviously, they likewise had a shared love of secrecy.

2 weeks earlier, Theranos silently revealed that it was closing down its operations and Holmes is dealing with criminal scams charges together with another crucial executive. She’s implicated of defrauding financiers, medical professionals and clients and is disallowed from acting as an officer or director of an openly traded business for the next years.

So, what occurred?

How did a business that raised more than $ 700 million, with pledges to change blood-tests by utilizing simply a couple of drops of blood, fall so amazingly from grace?

There is a lot to the story, which has actually been covered in the successful book Bad Blood , nevertheless here is the really high level variation.

As Theranos advanced from idea to truth, the innovation didn’t work as prepared. Rather of coming tidy, Theranos’ management, led by Holmes, picked to overemphasize– and straight-out lie– about the innovation. This consisted of running their blood test on standard devices, declaring it had actually been done on their device.

Theranos’ story is nearly similar to the situations that resulted in the Volkswagen’s diesel motor scandal

.

Was it enormous hubris? A debilitating worry of failure? Purposeful deceptiveness?

Maybe we’ll never ever understand the underlying why behind everything, however we can eliminate a couple of management lessons from it beyond the apparent problem of Holmes’ stability.

1. Do not over pledge and under provide.

Over-promising is something of an occupational danger for leaders of fast-growing business. While a pledge of terrific things is by no ways horrible, it’s the under-delivering part that is troublesome. As soon as a pledge is on the table, it produces severe pressure to satisfy objectives, possibly impractical ones. That’s the risk zone.

Eventually, bad options are being made as are claims that verge on fiction. The line in between aspirational thinking and reality starts to blur. By all ways, set huge, hairy, adventurous objectives. Simply ensure to keep a sharp eye on development and keep your ego in check if results aren’t as adventurous as you had actually hoped.

In high pressure circumstances, it’s all too simple to get captured up in our own vision– nevertheless blurred– and “modify” the truths to support our objectives.

2. Trust however validate.

It’s fantastic the number of clever individuals will get on a bandwagon even if it has lots of other clever individuals. Theranos had no scarcity of star power. Both Secretary of Defense, James Mattis and previous Secretary of State, Henry Kissinger, served on its board. However did they or any other powerhouses separately substantiate the business’s claims prior to enrolling? Obviously not. Google Ventures, who handed down investing, in fact sent out an investor to a Theranos’ Walgreens Health Center to take the advanced pinprick blood test and saw they requested for much more than a prick.

In our fast-moving society, it’s seriously crucial to do your own due diligence Following the herd may get you stomped.

3. Develop a group of dissenters.

As I pointed out in recently’s Friday Forward,” Respectful Argument ,” it’s important that we have individuals in our life and on our expert group who want to disagree and press back. Holmes began down a course of lying and concealing bad outcomes without anybody ready or able to stand and challenge her choices. She was understood for working with individuals near her and demanding severe secrecy and security of details.

Theranos’ failure is yet another example where the cover-up is even worse than the criminal activity. Holmes might not have actually set out to trick, however that does not matter any longer. What the circumstance exposes is how a couple of apparently little lies can rapidly progress into something much larger, messing up professions and track records at the same time.

The course of no return is one every leader needs to make every effort to drift from. However if you do discover yourself on this course, keep in mind … you’ll be more valued and appreciated for taking duty and owning your failures.

This concern initially appeared on Quora – the location to acquire and share understanding, empowering individuals to gain from others and much better comprehend the world. You can follow Quora on Twitter , Facebook , and Google + More concerns:

.

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