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Keith Krach
Founder and former CEO, Ariba, Inc.

 

A When your values conflict with your boss.

Keith Krach What are your values?  You may not know for certain until you find yourself under the pressure of working with someone whose values differ from your own. 

That was the situation founder and former Chairman and CEO of Ariba, Keith Krach, found himself in shortly after he joined a Silicon Valley startup.  Krach ventured out to Silicon Valley on his 30th birthday following his rise at General Motors where he became the youngest vice president ever at the age of 26.  Krach joined an early high-risk venture-backed enterprise software company as its COO with the commitment that he would take over the reigns as CEO within a year. 

"It was clear from the beginning that the founder and I didn't share the same values. I'll never forget the first time I heard her say, "Let's hide this from the board members." I was shocked because I always believed that Board Members should be trusted partners. My philosophy has always been that you have to share the good, the bad and the ugly with your Board. After nearly a year of employing every practical lesson I learned at GM to change the company culture, it  became  clear to me that the deficit was in the  core values  of the company leadership. The values that guided me were replaced with the values of dishonesty and cowardice. Although I had never designed from anything in my life, I realized that if I stayed there, I wouldn't be able to look myself in the mirror. My career to that point was like running the 100-yard dash, but  this epiphany was like getting smacked in the face with a two by four. When that happens, you have to go back to the basics of what you believe in. Without being true to my moral compass, I could never leave a legacy in any aspect of my life that I would be proud of."

The moment of reckoning came during the birth of his first son. While Krach was at the hospital experiencing with his pregnant wife, the founder kept calling him, demanding that he come back to the office for an important meeting with IBM executives. Krach told her there was no way he would miss the birth of his son.  He then simply said, "I quit." 

"That was a  defining experience in my life.  I learned more in a few months than any other time in my life about how important it is to live by your values everyday, no matter what the cost."

Krach went on to join the founding team of Rasna Corporation as the COO and then assembled the team that founded Ariba in 1996.  Krach served as CEO for the first five years of Ariba's history and chairman for seven years.  Ernst & Young named Krach National Entrepreneur of the Year in 2000 . 

"The advice I offer to the CEOs I mentor is never lose sight of what is really important in life. What matters most is your ability to look at yourself in the mirror, always knowing that you stayed true to yourself and what you believe in."



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