TLDR;
<ul>
<li>Builders &gt; Bureaucrats</li>
<li>We need strong, product focused, humble, tenacious leaders who are AMBITIOUS and will drive us to create / grow / maintain products.</li>
<li>They need to be the highest/executive level thinkers and people of a character that embody the values IC wants to be known for.</li>
</ul>
Let this be the primary filter when vetting candidates.
To begin
I’ve been thinking through our <a href="https://gov.indexcoop.com/t/nominations-active-index-council-v2-nomination-thread-and-process/4040/13">nomination</a> conversation, and our seeming eagerness to nominate a bunch of folks we think would just do a good job.
But I want to start by reiterating Set’s position, in order for Index Coop to have longevity and go from good to great, Index Coop’s immediate, and primary focus should be on activities that <a href="https://gov.indexcoop.com/t/set-s-intentions-and-next-steps/3994">create, grow, and maintain</a> successful investor products. I have a concern around how much time and energy here is spent on these forums, talking/debating about the best way to do things. We often swirl rather than having a Tech Startup/Experimental mentality.
Having said that, on the topic of leadership, we need to start recognizing our leaders will need success not only in this area, but they’ll need to embody characteristics that make them leaders worth following.
So I have a few thoughts on leadership before we all make some lasting decisions here. This conversation wasn’t had the <a href="https://gov.indexcoop.com/t/index-2-0-leadership-governance-and-decision-making-pods-nest-and-wise-owls/3214">first time around</a>, (instead we were hyper-focused on responsibilities and decision making authority, and troubleshooting, and engineering org structures). But if we have the will to think about it now, it will change not only the Coop, but the DeFi space as a whole, even the Cryptoverse, and the world (not to mention our personal experiences). I’m convinced these frameworks will help us think about true leadership outside of just ‘gettin it done’. This is important because <a href="https://www.amazon.com/What-Got-Here-Wont-There-ebook/dp/B000Q9J128">‘What got us here, won’t get us there’ 1</a>
“We’re going to see a 21st century shift, from a society of organizations well managed - to the world being organized into a society of networks well led. You don’t manage a network. If this is right, we’re going to need great leadership distributed throughout all sectors.”
Jim Collins [cir. 2015]
If you don’t already know, Jim Collins is a genius. And much of his team’s research in <a href="https://www.amazon.com/Good-Great-Some-Companies-Others-ebook/dp/B0058DRUV6/ref=sr_1_1?crid=1688RJE5WT45R&amp;keywords=good+to+great&amp;qid=1647957026&amp;s=digital-text&amp;sprefix=good+to+great%2Cdigital-text%2C91&amp;sr=1-1">Good to Great</a> DIRECTLY applies to the tough problems we’re trying to solve together at Index Coop. Go read it.
After teaching leaders at Westpoint, he gave a talk at the 2015 Global Leadership Summit that is pertinent here. I’ve distilled some of his thinking below.
But first, I believe we rise and fall by our definitions, and much of our debating here arises from ‘definition deltas’. So in your mind, set the word ‘leadership’ aside for a moment (with whatever baggage that carries for you), and ask the question. What does it mean to Lead Well?
Sometimes it’s easier to define things by what they’re not.
The data show that successful Leadership is not:
<ul>
<li>Personality</li>
<li>Position</li>
<li>Title</li>
<li>Rank</li>
<li>Power</li>
</ul>
To quote <a href="https://en.wikipedia.org/wiki/James_MacGregor_Burns">James MacGregor Burns</a>, “True leadership only exists if people follow when they would otherwise have the freedom to not. To invoke power, or rank, or position, or title as your primary means to getting things done is an abdication of leadership.”
I mean, how often do we get Personality confused with Leading Well, right?
I have some level of personal (or at least solid working) relationship with many of the v1 wise Owls <a href="/u/pepperoni_joe">@Pepperoni_Joe</a>, <a href="/u/metfanmike">@Metfanmike</a>, <a href="/u/lemonadealpha">@LemonadeAlpha</a>, <a href="/u/matthew_graham">@Matthew_Graham</a>. I respect these Kings and look up to them. They are all great people that have technical proficiency and strong ideas of what’s best for the Coop.
But I’m convinced the Coop (all of us), have suffered from continued operationally focused leadership to the exclusion of the biggest picture. While we need the operational layer, we’re so myopically focused on the ‘what’, that we don’t even have capacity to first think about who embodies the qualities that are representative of the <a href="https://gov.indexcoop.com/t/what-we-learned-from-the-survey/2622/12">Coop’s Values 1</a>. We’re doers by nature, and there’s plenty to do. 
(What do we value, by the way? This post was clearly a lot of work, and references ‘values’ dozens of times, but to my knowledge didn’t result in a widely adopted or publicized artifact of <a href="https://www.southwestairlinesinvestorrelations.com/our-company/purpose-vision-and-the-southwest-way">purpose/guiding values</a>, or our <a href="https://www.inc.com/entrepreneurs-organization/a-labor-of-love-how-to-craft-your-companys-core-values.html">“way of life”</a>. See also: <a href="https://hbr.org/2002/07/make-your-values-mean-something?cm_sp=Article-_-Links-_-Comment">Harvard Business Review</a> on meaningless values jargon). We’ll need this to calculate our North Star.
We’re so busy working in the Coop that we haven’t prioritized working on the Coop - the very thing that will tee us up to hit our TVL goals.
What I believe:
<ul>
<li>
The Highest Level Problem - DeFi is missing <a href="https://www.youtube.com/watch?v=WctRi1MT3u0">Leaders of Character 3</a>
<ul>
<li>
Localized Critical Issue: Index Coop has been missing world class leaders of character</li>
</ul>
</li>
<li>
IC <a href="https://lesley.edu/article/the-fundamentals-of-level-5-leadership">Lacks strong Leadership: 3</a> Index Coop lacks the leaders that will drive it towards being a successful, thriving organization.
</li>
<li>
IC <a href="https://culture.io/building-the-business-case-for-company-culture/">Culture is broken 1</a> - Index Coop, from day 1, has never had a leader intentionally build the organization’s culture.
</li>
<li>
IC lacks <a href="https://www.fastcompany.com/3055324/how-habitat-for-humanity-is-creating-a-stronger-identity-to-amplify-its-mission">Identity </a>- The Coop does not know, or cannot agree, on what it is, what it does (offers as a primary value proposition), and why.
<ul>
<li>(This manifests in many ways, but more recently around ‘who thinks we should centralize to what level’, etc.)</li>
</ul>
</li>
</ul>
*Definition - <a href="https://iveybusinessjournal.com/publication/leaders-of-good-character/">Leaders of Character</a> here are not defined by the specific skill sets they bring to the table, or their Personality, Position, Title, Rank, Power. We already have many technically competent people in critical positions and many with significant political power. Leaders of Character in this context are defined by the highest level 10,000 ft view thinking and their embodiment of the values the Coop stands for.
On the Art of leading well
“Leadership is the art of getting people to want to do what must be done” 
-Gen. Eisenhower
Observations on this quote:
<ol>
<li>Part of the responsibility of being a leader is to figure out, on the big things, what must be done, and much more often than not, to be right.</li>
<li>It’s not about getting people to do what must be done, it’s about getting them to want to do what must be done</li>
<li>It’s not a science, it’s an art</li>
</ol>
“A Level 4 leader is good at inspiring people to follow them. A <a href="https://rickkettner.com/level-5-leadership/">level 5 leader 1</a> is good at inspiring people to follow the cause.”
On Decision Making:
The most empowering thing I can do as a leader is look at the leaders around me and say “You decide”
One of the biggest mistakes a leader can make is making all the decisions. When you do that, you undermine the development of the leaders around you. Make as few decisions as possible - pushing the decision down as far as possible.
For our context, I believe the Council should be pushing decisions down to relevant leaders and when necessary, pushing them to assembled <a href="http://www.lifesmostpowerfulquestion.com/about-win">WIN teams 2</a> for urgent focus on specific critical issues, with the aim to make strategic recommendations on the tactics needed to move the biggest obstacles blocking us from our <a href="https://gov.indexcoop.com/t/discussion-on-councils-vision-from-leadership-forum/3653">Vision</a>.
Which candidates do we believe embody this idea, maintaining the 10,000 foot, executive view and not ‘getting in the weeds’? Who is willing to push decisions down when possible for the good of the Coop? Who isn’t a candidate yet, who embodies these leader qualities?
On Bad decisions/mistakes:
We never gain more respect for leaders who are not willing to own their mistakes. People will forgive leaders for making bad decisions, in fact you can actually gain moral authority and credibility by owning your bad decision, but you lose both when you cover up.
Tell the truth
Tell it fast
Tell it yourself
On Leader Development:
We should give people opportunities they’re not quite ready for, and then refuse to make decisions for them.
Strong, product focused, newer leaders that while humble, are AMBITIOUS and drive us to create / grow / maintain products both early and late adopters will love, should be given opportunities for decision making. This is the only way to ensure our Leadership Pipeline is producing the leaders the Coop needs (we need WAY more than just the Council), and that DeFi is desperate for.
5 Characteristics of a Leader worth following:
I believe there are 5 characteristics that make a leader worth following. You don’t have to have these 5 things to be a leader, but I’m convinced you do have to have these 5 things to be a leader worth following. I’m still exploring, and I have lots of questions around each of these that I’d love input on.
The idea is to become a leader worth following, and to embody these five things:
<ul>
<li>
Clarity
<ul>
<li>As leaders we can be uncertain but we cannot be unclear
</li>
<li>Clarity in leaders trumps everything - people follow clarity, they don’t follow integrity (look at all of politics throughout all of history)
<ul>
<li>Why? Clarity creates certainty which is really what people want - the wallets holding our products, our external partners, and our investors</li>
<li>Which candidates have we consistently seen the most clarity from in their understanding and Vision for the Big Picture?</li>
</ul>
</li>
</ul>
</li>
<li>
Courage
<ul>
<li>Are we willing to leverage more than our ability to be clear, so that at the end of the day there is a legacy - something to look back on?</li>
<li>What does courage look like in the context of leadership?</li>
<li>Which of our leaders are brave enough to say “No” even if it jeopardizes their ‘political’ standing in the Coop bureaucracy?</li>
</ul>
</li>
<li>
Competence
<ul>
<li>Technical proficiency and holistic context to understand the biggest picture issues</li>
<li>How do we measure something like this? What are big picture KPI’s, $INDEX price? Budget cutting?</li>
</ul>
</li>
<li>
Coachability
<ul>
<li>“I assume I’m not the smartest person in the room, I’m just the leader”</li>
<li>Are our leaders comfortable with saying “I don’t know” when needed? This should be a celebrated posture for leaders. Who currently embodies this level of humility? Who is actively practicing this?</li>
</ul>
</li>
<li>
Character
<ul>
<li>The will to do what’s right, even when it costs you something</li>
<li>What does this look like in our context for Nest leads or the Council or Pod leads?</li>
</ul>
</li>
</ul>
One more TLDR; We’ve been focusing on only a part of the picture, and therefore starting from inaccurate assumptions and unhelpful lenses. Let’s fix this for today, and future conversations around leading well in the Coop.
I’d be honored to hear your feelings and thoughts on this as we consider our options and take steps forward.

A Framework for Index Council Candidate Vetting  TLDR;  
 
 Builders &gt; Bureaucrats 
 We need strong, product

A Framework for Index Council Candidate Vetting

Authors: <a href="/u/setoshi">@setoshi</a> , <a href="/u/nic">@nic</a> , @ alejandro, <a href="/u/gregdocter">@gregdocter</a>
Summary
<ul>
<li>The Index Coop &lt;&gt; Set relationship continues to evolve; several shifts are occurring.</li>
<li>Success == the Index Coop ecosystem (Index Coop, Set, other partners) creating, growing, and maintaining dozens of successful products leading to significant TVL growth for all ecosystem organizations</li>
<li>Set will be focused on where we can be highest-leverage to the Coop: Technology, Leadership, Product Ideas</li>
<li>We believe the Index Coop’s success depends on the number of products it can create, grow, and maintain autonomously and sustainably.</li>
<li>(, )</li>
</ul>
<h3>
<a name="introduction-1" href="#introduction-1"></a>Introduction</h3>
The Index Coop has evolved dramatically since Set founded and launched it in October 2020.
Throughout that evolution, the nature of the Set &lt;&gt; Index Coop (IC) relationship has also changed. We’ve recently entered a new, exciting phase for both organizations.
The purpose of this post is to share Set’s goals and how the Set &lt;&gt; IC relationship is evolving.
This post will be successful if it helps Index Coop core contributors, community, and other core stakeholders better understand:
<ul>
<li>Set’s evolving relationship with the Index Coop</li>
<li>Set’s intentions</li>
<li>Set’s beliefs of what matters most for Index Coop success</li>
</ul>
We recognize that we exist in a rapidly evolving market and environment, so this post reflects how we view things today. We will update as needed.
This post does not change the nature of collaboration for Set &amp; Index Coop teams already working closely together. Instead, it communicates the big picture.
We are excited for the future of Set, the Index Coop, and our organizations working together towards <a href="https://gov.indexcoop.com/t/discussion-affirming-our-code-of-conduct-and-guiding-principles/2404">shared goals 1</a> and mutual success.
Onwards (,)
<h3>
<a name="set-protocol-and-the-index-coop-2" href="#set-protocol-and-the-index-coop-2"></a>Set Protocol and the Index Coop</h3>
<h4>
<a name="set-protocol-description-goals-3" href="#set-protocol-description-goals-3"></a>Set Protocol: Description &amp; Goals</h4>
Let’s root ourselves in the basics.
Set Protocol is an asset management platform. Set’s purpose is to increase financial prosperity by making powerful financial tools accessible to anyone in the world. We’re building a fully-featured and reliable platform for investors to access packaged strategies, and for creators to launch / grow / maintain strategies and build asset management businesses.
Today, we are focused on improving the Set platform and shipping successful products in order to rapidly increase protocol adoption and TVL.
This goal requires that Set
<ul>
<li>
Improves the platform for asset managers and developers - We expect to continue to foster an ecosystem of asset managers (including Index Coop) and developers using Set technology. To do this will require that we improve the platform in response to their needs.</li>
<li>
Supports successful products - We expect to be focused on structured products in categories where we believe we can be #1 or #2 in the market.</li>
</ul>
The Index Coop remains our closest partner for achieving these goals. We know that by improving the platform and supporting successful products both the Index Coop and Set will win (,).
Achieving those two goals also requires focus. We intend to fully distinguish Set Protocol and Index Coop from one another so that both organizations can double down on their strengths.
<h4>
<a name="index-coop-origins-and-set-relationship-4" href="#index-coop-origins-and-set-relationship-4"></a>Index Coop Origins and Set relationship</h4>
These goals are made possible due to how far the Index Coop has come since Set launched it with a simple <a href="https://medium.com/indexcoop/introducing-the-index-cooperative-a4eaaf0bcfe2">post 2</a> and <a href="https://docs.google.com/presentation/d/1GRhB9EQXEtdSXB-m4B459lr9BZ95LCTeG-WdDZIvH5Q/edit#slide=id.g38420732af_0_142">community call</a> in October 2020.
Set launched the Index Coop in order to support the DeFi Pulse Index. A decentralized community was needed to govern, rebalance, and grow the product and creating a community from scratch was the answer.
Of course, the Coop has evolved significantly since launch. Over 11 products with ~$150MM TVL are in the market, $10MM was raised from investors, the brand is strong and the community is thoughtful, hardworking, and passionate. It’s clear that the Coop strives to be a great and lasting organization that marks the best of DeFi.
So too has the Set &lt;&gt; Index Coop relationship evolved. While not linear or obvious, we’ve tried to approach the relationship in a manner of <a href="https://www.aspengroup.com/blog/five-steps-of-leadership-development">leadership development 1</a>and hand over more responsibility and autonomy to non-Set core contributors over time. Roughly speaking, the relationship has changed over 3 phases:
<ul>
<li>Phase 1 : October 2020 - February 2021</li>
<li>Phase 2 : March 2021 - June 2021</li>
<li>Phase 3: July 2021 - December 2022</li>
<li>Phase 4: January 2022 - ??</li>
</ul>
We are now in the midst of an exciting 4th phase in which our organizations will become fully distinguished from one another such that the Coop can fully stand on its own two feet without Set’s operational involvement.
This milestone is a testament to the hard work and dedication of everyone who has contributed along the journey so far.
At a high level, this 4th phase requires that Set transfers the remaining operations (primarily technical in nature) to Index Coop Directly Responsible Individuals (DRis) in an intelligent and safe manner. We will continue to do this based on a clear vision, intentional planning, and effective collaboration such that both organizations are set up for success. In the end, Set will remain a core Index Coop stakeholder and will continue to work in collaboration with our Coop colleagues in the highest-leverage ways possible.
We see a future in which the collective Index Coop ecosystem (Index Coop, Set, other partners) is able to create, grow, and maintain dozens and then hundreds of desirable products - leading to significant TVL growth for all ecosystem organizations.
<h3>
<a name="h-113-how-we-will-succeed-together-5" href="#h-113-how-we-will-succeed-together-5"></a>1+1=3: How we will succeed together (,)</h3>
To reach that vision, both Set and the Index Coop need to focus on their strengths.
Set will continue to support the Index Coop in the highest-leverage ways we can.
<ul>
<li>
Technology Provider - Set is a technology provider and is focused on building fully-featured and reliable infrastructure that enables Index Coop and other asset managers to create, grow, and maintain delegated management products.</li>
<li>
Leadership Provider - Achieving our shared goals will require working alongside Coop leadership structures. Contributing executive level leadership / strategy, and generally supporting the creation of an environment that enables the Coop to become a lasting DeFi institution.</li>
<li>
Product Idea Provider - Guiding methodologists interested in building on Set Protocol (inbound to Set) and in need of the Coop’s core value propositions to and through the Index Coop to launch their product(s). Contributing methodologies and giving 100% of fees to IC (i.e. <a href="https://gov.indexcoop.com/t/proposal-launch-a-basis-trading-product-suite/3954">Proposal: Launch a Basis Trading Product Suite 1</a>)</li>
</ul>
We see the Index Coop success as dependent on the number of successful products that it creates, grows, and maintains autonomously and sustainably.
<ul>
<li>
Create - Source &amp; select the best product ideas to create: Properly generating these ideas requires immense creativity, market insight, and experience. Ideas can be generated internally or via external partners. Strong product judgment is required to determine what will do well in the market.</li>
<li>
Grow - Effectively bring products to market and grow them: This requires a deep understanding / insights of what it takes to launch successful products and to lean into the opportunities that generate these products.</li>
<li>
Maintain - Autonomous and sustainable product maintenance: This requires dedicated team members who are empowered with the proper tooling and technology to ensure that products are maintained indefinitely.</li>
</ul>
<div><a href="https://global.discourse-cdn.com/standard10/uploads/theindexdao/original/2X/e/ef35d458eb0d0dae2402c5a727a7231428fb4ba4.jpeg"><div>
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</div></a></div>
To create, grow, and maintain successful products requires organizational capability and the will to focus on those 3 pillars of success. This means optimizing resource allocation to core create/grow/maintain functions.
If create, grow, maintain are the Index Coop’s focus, success will follow.
Set &amp; Index Coop teams are already working together towards these roles, and Set will continue to lend significant resources and support to ensure that we reach the end-state in a position that leaves both organizations poised for further growth.
This ongoing, phase 4 collaboration has rested on two key pillars that we fully expect to continue.
<ul>
<li>Clear, consistent, open communication - We have established clear, known communication channels between our organizations.</li>
<li>Clear collaboration - Creating clear collaboration agreements, especially as related to product create/grow/maintain.</li>
</ul>
<h3>
<a name="changelog-6" href="#changelog-6"></a>Changelog</h3>
Now let’s go from the high-level direction to concrete changes.
This table contains a summary of all the in-progress work that is required for the Index Coop and Set to fully distinguish from one another, focus on respective strengths, and work in a (3,3) relationship well into the future.
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<h3>
<a name="overview-what-set-supports-and-does-not-support-7" href="#overview-what-set-supports-and-does-not-support-7"></a>[Overview] What Set supports and does not support</h3>
We view one of the highest-leverage ways for Set to contribute is as a leadership provider.
In an effort for transparency and clarity, here is a table that shares an overview of what Set will and won’t be supportive of when it comes to Index Coop proposals and activities.
TLDR; Set is supportive of focus on creating, growing, and maintaining successful products, as well as organizational structures that focus on those pillars with appropriate resource allocation.
<div><a href="https://global.discourse-cdn.com/standard10/uploads/theindexdao/original/2X/6/673edfc06801c985a10666c0f2e9259143633e6d.png"><div>
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</div></a></div>
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</div></a></div>
<h3>
<a name="conclusion-8" href="#conclusion-8"></a>Conclusion</h3>
Set is excited for the future of Set, the Index Coop, and our organizations working together towards shared goals and mutual success.
Key Takeaways
<ul>
<li>Set is focused on building the platform and products needed in order to rapidly increase protocol adoption and TVL.</li>
<li>In relation to the Index Coop, Set will be focused on where we can highest-leverage: Technology, Leadership, Product Ideas</li>
<li>In order for the Coop to succeed, we believe it must focus on 3 core pillars of product: create, grow, and maintain.</li>
</ul>
Here’s to our future success! (,)

A Framework for Index Council Candidate Vetting

Set’s Intentions and Next Steps

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