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#<br />
14<br />
Michael Sikorsky<br />
company Robots and Pencils | location Calgary | Founded 2009<br />
<strong>Follow</strong><br />
<strong>the</strong><br />
<strong>talent</strong><br />
opposites<br />
attract<br />
Sikorsky is a<br />
programmer<br />
by trade (a.k.a.<br />
<strong>the</strong> robot); his<br />
wife and business<br />
partner, Camille,<br />
is a designer<br />
(a.k.a. <strong>the</strong> pencil).<br />
124 THAT’LL NEVER WORK<br />
photographs by Colin Way
Robots and Pencils<br />
Born in a Calgary basement, this<br />
mobile app-maker marries great<br />
programming with beautiful<br />
design. The company’s employees<br />
enjoy a supportive culture designed<br />
to nurture creative risk-takers.<br />
The only catch for prospective<br />
employees: Owner Michael<br />
Sikorsky demands a minimum<br />
commitment of a decade→<br />
SSome people wait for <strong>the</strong> perfect<br />
idea, but that’s not my style. We don’t<br />
even know what we don’t know, so<br />
let’s start learning—that’s my style.<br />
When Apple launched its original<br />
iPhone in 2007, my wife, Camille, and I<br />
knew that apps would be massive, and<br />
we wanted to be part of it. One evening,<br />
while we were trying to think up<br />
an idea, we went to <strong>the</strong> movies. In <strong>the</strong><br />
lobby, <strong>the</strong>re was a machine that, for a<br />
quarter, would tell you how much your<br />
date was crushed out on you at <strong>the</strong> moment—<strong>the</strong>se<br />
silly, silly experiences for<br />
a quarter. And so I was like, “We’ll just<br />
pick one of those.”<br />
We turned it around virtually in<br />
days, and we called it Crushfactor. It<br />
was just us. We were a cliché: husband<br />
and wife, mom and pop, in our basement<br />
office. We didn’t even understand<br />
what you were supposed to do<br />
in an app store. We were just trying to<br />
think of anything to get started. Crushfactor<br />
didn’t do very well, though. I<br />
hate even talking about it.<br />
A lot of companies have one<br />
strength—ei<strong>the</strong>r <strong>the</strong> design is really<br />
good or <strong>the</strong> software’s really good. It’s<br />
rare to have both. I was inspired by a<br />
lecture that scientist and novelist C.P.<br />
Snow made at Cambridge in 1959, in<br />
which he talks about how <strong>the</strong> world<br />
is split between <strong>the</strong> sciences and <strong>the</strong><br />
humanities. He believed many of <strong>the</strong><br />
world’s problems were rooted in this<br />
split and argued for one culture. That<br />
was <strong>the</strong> founding idea behind Robots<br />
and Pencils. Camille is a designer, and<br />
I’m a programmer. So I’m <strong>the</strong> original<br />
robot, and she’s <strong>the</strong> original pencil.<br />
Now, we are very, very focused on<br />
saying no. If you never say no, you<br />
probably don’t have a very strong<br />
strategy. My go-to motto is that none<br />
of <strong>the</strong> world’s best restaurants are<br />
Number of<br />
iPhones sold by<br />
year (millions)<br />
2007----- 1.4<br />
2008----- 11.6<br />
2009----- 20.7<br />
2010----- 40<br />
2011------ 72.3<br />
2012------ 125.1<br />
2013------ 150.3<br />
2014 ----- 69.2<br />
126 THAT’LL NEVER WORK THAT’LL NEVER WORK 127
Robots and Pencils<br />
“<br />
Focus is key—none<br />
of <strong>the</strong> world’s<br />
best restaurants<br />
are buffets.<br />
buffets. We wanted to become amazing<br />
through focus, and I didn’t think it was<br />
realistic to work across three or four<br />
platforms when we started. I thought,<br />
“Let’s get good at one thing—let’s be<br />
amazing at mobile for iOS.” We’ve<br />
designed for iPad since 2010, but when<br />
we started, <strong>the</strong> iPad didn’t even exist.<br />
I have two favourite projects. Spy vs.<br />
Spy was a game based on <strong>the</strong> classic<br />
Mad Magazine comic that debuted in<br />
1961. In <strong>the</strong> summer of 2012, that app<br />
was a global hit. I still don’t believe it.<br />
We started this company, and within<br />
a couple years we were No. 1 in almost<br />
every single app store we were<br />
in, including <strong>the</strong> United States, <strong>the</strong><br />
United Kingdom, Canada, Australia<br />
and Germany—all <strong>the</strong> ones that matter.<br />
We made it to No. 4 in Japan. It was<br />
mind-blowing. We were thrilled.<br />
The o<strong>the</strong>r one was PencilCase,<br />
which we debuted at Macworld in<br />
2014. It was named <strong>the</strong> most interesting<br />
program at <strong>the</strong> event by famed<br />
Apple journalist David Morgenstern.<br />
PencilCase lets anyone build apps—no<br />
coding experience required—and it’s<br />
been really interesting watching that<br />
happen. Financial services companies<br />
use it to create interactive sales tools<br />
and to help explain some of <strong>the</strong>ir complex<br />
financial products. It’s been used<br />
for travel apps and interactive comics<br />
and books, and some designers have<br />
been using it as a prototyping tool.<br />
Our headquarters is in a renovated<br />
heritage building in Calgary. I love being<br />
in Canada, and I think <strong>the</strong> people<br />
here are awesome. I think every city<br />
sends a message, and Calgary says,<br />
“Sure, you can do it—I don’t care if<br />
you’ve never done it before.” In today’s<br />
world, it doesn’t really matter where<br />
you live—<strong>the</strong> world is disintermediated<br />
and dematerialized, which means<br />
you can have impact from anywhere.<br />
But even in <strong>the</strong> technology business,<br />
people will still say that interesting<br />
things only come out of <strong>the</strong> Bay Area<br />
Your mission:<br />
to escape <strong>the</strong><br />
embassy with<br />
a top-secret<br />
briefcase,<br />
locating a<br />
missing passport,<br />
money, key and<br />
secret plans<br />
before beating<br />
your booby-traploving<br />
opponent<br />
to <strong>the</strong> airport.<br />
or Silicon Valley. If you need venture<br />
capitalists, it probably makes sense<br />
to be where <strong>the</strong>y are, but I can’t play<br />
<strong>the</strong> game of “Get money, sell company.”<br />
I’ve been through that cycle a<br />
few times, and it was one of <strong>the</strong> worst<br />
experiences. Back in 2002, I sold a<br />
software company that I co-founded,<br />
Servidium, to a Chicago-based outfit.<br />
When you sell your company, I think<br />
your meaning bubble pops and you go<br />
into an existential crisis. At <strong>the</strong> end<br />
Forget Silicon<br />
Valley—Robots<br />
and Pencils is<br />
headquartered<br />
in Calgary. But it<br />
also has offices<br />
in Winnipeg,<br />
Colorado, Texas,<br />
and London.<br />
Why? Because<br />
that’s where <strong>the</strong>y<br />
happened to find<br />
great people.<br />
128 THAT’LL NEVER WORK THAT’LL NEVER WORK 129
Robots and Pencils<br />
of <strong>the</strong> day, if you’re into making and<br />
building stuff, you can’t care how many<br />
zeroes are in your bank account. Businesspeople<br />
sometimes do, but people<br />
who are makers don’t really care.<br />
I discovered something doing Robots<br />
and Pencils: I think most people who<br />
are in <strong>the</strong> capital business do not know<br />
how to build great companies. Because<br />
my past companies always had financing,<br />
I thought that was how you did<br />
it—get <strong>the</strong> funding first. I didn’t realize<br />
that building a great team and having<br />
money aren’t connected at all. They’re<br />
two different objectives. My objective<br />
is to build an amazing company, one<br />
that attracts <strong>the</strong> best people in <strong>the</strong><br />
world to come and share in <strong>the</strong> rewards.<br />
For venture capitalists, it’s like,<br />
“I’ve got a 10-year window on my fund<br />
and I need to reach a certain internal<br />
rate of return for my limited partner.”<br />
That said, Robots and Pencils is a very<br />
successful company. The growth numbers<br />
are crazy—an 84-percent cumulative<br />
annual growth rate over five years,<br />
or 4,971 percent total. It works. We<br />
have no debt, no financing, fast-growing<br />
revenue and a good bottom line.<br />
As for hiring, people are our most<br />
So far, Robots<br />
and Pencils has<br />
developed more<br />
than 250 apps<br />
that have been<br />
downloaded by<br />
more than 77<br />
million people.<br />
“<br />
If you follow <strong>the</strong><br />
<strong>talent</strong>, you get an<br />
unfair share<br />
of hyper-<strong>talent</strong>ed<br />
people.<br />
important assets. I don’t think about<br />
having staff; I think about having<br />
<strong>talent</strong>. I call it FTT: <strong>Follow</strong> <strong>the</strong> Talent.<br />
We find pockets of <strong>talent</strong>ed people,<br />
and that’s where we build an office.<br />
It gives us access to an unfair share of<br />
hyper-<strong>talent</strong>ed people. Take our managing<br />
director in Winnipeg: He can’t<br />
move for personal reasons, but he is so<br />
good, he attracts people who want to<br />
work with him. We had to ei<strong>the</strong>r build<br />
an office around him or not work with<br />
him—those were our only two options.<br />
So now we have an office in Winnipeg,<br />
two offices in <strong>the</strong> U.S.—Austin and<br />
Denver—and one in London. We’ll be<br />
coming to Toronto soon, too.<br />
When I talk to someone who has<br />
<strong>talent</strong>, I’m very straightforward that<br />
I need a 10-year commitment. That’s<br />
very awkward. People think I’m<br />
crazy. But if you’re building something<br />
compelling, it automatically<br />
must also be repelling. There will be<br />
people who love it, and <strong>the</strong>re should<br />
be people who hate it. The reason we<br />
need to work toge<strong>the</strong>r for a long time<br />
is so that we can follow you and watch<br />
ideas emerge. PencilCase and Spy vs<br />
Spy both emerged from <strong>the</strong> <strong>talent</strong>, not<br />
from <strong>the</strong> management. My job is to let<br />
<strong>talent</strong> feel free to have <strong>the</strong>se thoughts.<br />
To support this, we avoid internal silos.<br />
We don’t care about <strong>the</strong> vertical—<br />
we’re vertical-agnostic. If you think<br />
about amazing innovation, people are<br />
always talking about it being cross-disciplinary<br />
or interdisciplinary, but<br />
everyone ends up going into <strong>the</strong>ir silos.<br />
The breakthrough comes when <strong>the</strong><br />
finance person talks to <strong>the</strong> physicist.<br />
We want to stay in breakthrough<br />
mode all <strong>the</strong> time. We’re just at <strong>the</strong><br />
beginning of our story. Our vision is to<br />
be at least a 100-year-old company. I<br />
actually want it to be 1,429 years old,<br />
because <strong>the</strong>n Robots and Pencils will<br />
be <strong>the</strong> oldest company on <strong>the</strong> planet. ■<br />
According to<br />
<strong>the</strong> Guinness<br />
Book of World<br />
Records, <strong>the</strong><br />
oldest business<br />
in <strong>the</strong> world is<br />
<strong>the</strong> Nisiyama<br />
Onsen Keiunkan,<br />
a hot-spring<br />
hotel in Japan—it<br />
was founded in<br />
705 A.D. and has<br />
been run by <strong>the</strong><br />
same family for<br />
52 generations.<br />
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