Doing an IPO: What really matters.

• Author: DUNHAM, ARCHIE W.
• Position: Conoco Inc.

Some important truths about taking such a significant step in a company's history.

THE MOMENT our company had dreamed of for so many years became a reality on Oct. 22, 1998, when Conoco's stock began trading on the New York Stock Exchange. I stood on the Exchange floor, appreciative of the endorsement of investors worldwide, overwhelmed by feelings of joy and accomplishment. But when the euphoria subsided, reflection took over and the truth about what mattered most came into focus.

In retrospect, the financial and strategic imperatives that brought Conoco to the NYSE turned out to be just part of the story. We learned a lot from our IPO, and some of those lessons made the difference for us in the face of the risky market conditions of October 1998. Here are some of the things that really mattered most.

Put Ego on Hold. Like most management teams I've been part of, ours has a healthy ego. You need it to survive - and you need to know when to temper it. Going public requires "level-headed thinking" and good listening skills.

We decided to employ several consulting firms to evaluate the petroleum industry and Conoco in particular. What changes would the industry experience during the next 10 years and what actions or alternatives should Conoco be considering to prepare itself for the new Millennium? None of the consultants knew that we had contracted others to prepare the same study, and none knew our intent. Ultimately, all stated that the time was right for Conoco to pursue independence from its parent company, DuPont. This validated our bullishness, fueling our confidence to proceed with the IPO.

Keep the Golden Ring in Clear View. When you're in a separation situation, you don't exactly "negotiate" with a parent when it owns 100% of your stock. Yet both parties have to respect the need to achieve mutual gain and shareholder benefit without disabling one of the entities. In an atmosphere of trust and for the most part goodwill, we found a sensible way. It wasn't easy, and the exchanges were sometimes blunt. In the end, the honor and trust prevailed. We separated still friends.

Play the Passion Card. There's nothing glamorous about a road show. It's really a series of "cold calls" - for our team more than 120 presentations in 10 countries and 47 cities in three weeks. You go from dawn to way past dusk every day. Repetition, fatigue and stress can take a toll. Yet the show must go on.

As we put together the road show team, we looked for...