Entrepreneurs

Many Creative People Think They Can Invent Best Working Solo

January 19, 2022 By Nagesh Belludi Leave a Comment

Apple co-founder Steve “Woz” Wozniak writes in his memoir, iWoz: Computer Geek to Cult Icon: How I Invented the Personal Computer, Co-Founded Apple, and Had Fun Doing It (2006):

Most inventors and engineers I’ve met are like me—they’re shy and they live in their heads. They’re almost like artists. In fact, the very best of them are artists. And artists work best alone—best outside of corporate environments, best where they can control an invention’s design without a lot of other people designing it for marketing or some other committee. I don’t believe anything really revolutionary has ever been invented by committee… I’m going to give you some advice that might be hard to take. That advice is: Work alone.

Teams aren’t automatically better at creativity. In what’s termed “collaborative inhibition,” everyone needs to be happy, so team members talk and talk until they’ve reached a consensus on a decision which is usually the lowest common denominator—something tepid that everyone, worn out from the prolonged discussion, can endorse.

Idea for Impact: The best creative decisions often reflect a unique, opinionated perspective. Look for ways to increase organizational creativity by building better environments in which individual creativity can thrive.

Don’t Be A Founder Who Won’t Let Go

January 17, 2022 By Nagesh Belludi Leave a Comment

You’ll never get a potential successor to take your job if you’re going to be peering over her shoulder constantly and talking to employees directly about what they’re doing.

When you have a case of the founder’s syndrome, you’re addicted to running the show, and you’ll have a hard time separating yourself from the company you’ve built. When there are conflicts, you’re often at the center of it and hold your vision and experience over the leadership’s heads.

In the long run, your compulsion to have a say in all the nitty-gritty of your company will undermine the future of the very company that you’ve devoted your life to. The best thing you can do for its future is to back off and give your successor real control.

Establish a timetable to disengage yourself from the operating decisions and set some firm rules about this transition. Spend increasingly more time away from the business and pursue other interests. Start to envision a world in which your next ventures or leisure activities will become the principal focus of your life.

Idea for Impact: Know when your work is over and when it’s time for you to move on to other things. Grooming exceptional talent to take over the business you’ve built and gradually letting go of control is one of the most challenging things a founder will ever do. If done well, it’s the most transformative you can do for your business.

Why Amazon Banned PowerPoint

December 23, 2021 By Nagesh Belludi Leave a Comment

One of the distinctive features of the Amazon management system is its use of the long-form to facilitate decision-making. Jeff Bezos has claimed that banning PowerPoint presentations—more specifically disallowing bullet points for sharing ideas—as Amazon’s “probably the smartest thing we ever did.”

Since June 2004, Bezos has forbidden bullet points and PowerPoint at a senior leadership level. Instead of presentations, teams are expected to iterate an approach to sharing information that involves writing memos of running copy, usually a “six-page, narratively-structured memo.” Meetings typically begin in silence as all participants sit and read the memo for up to half an hour before discussing the subject matter.

Ram Charan and Julia Yang’s The Amazon Management System (2019) reproduces the original email from Bezos explaining this dictum:

Well-structured, narrative text is what we’re after, rather than just text. If someone builds a list of bullet points in Word, that would be just as bad as PowerPoint.

The reason writing a good four-page memo is harder than ‘writing’ a 20-page PowerPoint is because the narrative structure of a good memo forces better thought and better understanding of what’s more important than what, and how things are related.

PowerPoint-style presentations somehow give permission to gloss over ideas, flatten out any sense of relative importance, and ignore the interconnectedness of ideas.

Using memos may seem counterintuitive in an age when communication is increasingly visual. However, long-form has a way of forcing rigor to think through ideas properly, reconcile viewpoints pro and con, iron out logical inconsistencies, and consider second-order consequences.

Bezos’s approach is brilliant not just because sentences and paragraphs enable a certain clarity in thought and exchange of ideas. It also inhibits some of the usual shortcomings of brainstorming meetings, viz., interruptions, biases that initiate groupthink, and the tendency to reward rhetorical ability over substance. Forcing all meeting attendees to read the memo in real-time prevents them from pretending to have read it before a meeting and then bluffing their way through the meeting.

Idea for Impact: Think complex, speak simple, decide better.

Bullet points and “decks” are often the least effective way of sharing ideas. Having a narrative structure allows you to clarify your thinking and provide a logical, sequenced argument to support your ideas.

Let’s Hope She Gets Thrown in the Pokey

November 16, 2021 By Nagesh Belludi 1 Comment

The Elizabeth Holmes-Theranos criminal trial hasn’t been without its share of theatrics.

Yes, Holmes’s massive fraud is obvious. She entranced (read WSJ reporter John Carreyrou’s excellent chronicle, Bad Blood (2018; my summary)) journalists, investors, politicians, and business partners into believing her fantasy science. She may even be responsible for negligent homicide if people died because of her company’s fake test results.

Then again, these sorts of cases generally hang on subtle distinctions between hyperbole and outright dishonesty and whether such deceit was deliberate.

Holmes’s lawyers will argue that she was merely an ambitious entrepreneur who failed to realize her vision but wasn’t a fraudster. Her lawyers will make a case that she is not to be blamed because people took her puffery and exaggeration as factually accurate. At what point do her wishfulness and enthusiasm go from optimism to intentional fraud? That’ll be the critical question.

At any rate, the Theranos verdict is unlikely to deter others from the swagger, self-assurance, hustle, and the “fake it till you make it” ethos that is so endemic to start-up culture. Investors will never cease looking at people and ideas rather than the viability of their work.

Idea for Impact: Don’t be so swayed by story-telling that has a way of making people less objectively observant. Assemble the facts, and ask yourself what truth the facts bear out. Never let yourself be sidetracked by what you wish to believe.

Lessons from Airline Entrepreneur David Neeleman: Staff Your Weaknesses

November 8, 2021 By Nagesh Belludi Leave a Comment

Airline serial entrepreneur David Neeleman has Attention Deficit Hyperactivity Disorder (ADHD.) School was torture. He couldn’t focus, and he procrastinated constantly.

“I felt like I should be out doing things, moving things along, but here I was, stuck studying statistics, which I knew had no application to my life,” Neeleman once said. “I knew I had to have an education, but at the first opportunity to start a business, I just blew out of college.”

Despite his own struggles, Neeleman went on to build a stellar business career in the airline industry. He started Morris Air, WestJet, JetBlue Airways, Azul Brazilian Airlines, and Breeze Airways. He’s even led the revival of TAP Air Portugal.

Through it all, Neeleman made the best of his strengths—original thinking, high energy, and the ability to draw the best out in people.

Far from lamenting his ADHD, David Neeleman celebrated it

Early on, Neeleman realized that he must manage his ADHD carefully. Throughout his career, he got help with his weaknesses.

People with ADHD tend to possess rare talents and gifts. They can be extraordinarily creative and original. They display ingenuity, and they encourage that trait in others. They can improvise well under pressure.

However, ADHD confers disadvantages too. People with ADHD are likely to be incredibly forgetful, disorganized, impulsive, and hyperactive. They drag their feet and miss deadlines. Their performance can be inconsistent. They can drift away mentally unless, oddly enough, they’re under stress or handling multiple inputs.

Sadly, modern society (including parents, schools, workplaces, and career counselors) tends to linger upon the negative symptoms and encourages people with ADHD to learn to cope with them. Strengths are more likely to go unnoticed.

Idea for Impact: Don’t let your weaknesses stop you from reaching your life goals.

In your work-life and outside, seek environments that allow you to bring more of your strengths to play. But don’t ignore your weaknesses (or the downsides of your strengths.)

Staff your weaknesses. Identify two or three key job activities that you don’t do well. Determine how you can delegate those responsibilities to others or seek help. This way, your weaknesses don’t become the Achilles heel that can hamper the strengths that make you effective.

How Jeff Bezos is Like Sam Walton

November 1, 2021 By Nagesh Belludi Leave a Comment

Walmart founder Sam Walton’s brilliant autobiography, Made in America (my summary,) was published a few weeks before his death in 1992. The penultimate page reads,

Could a Wal-Mart-type story still occur in this day and age? My answer is of course it could happen again. Somewhere out there right now there’s someone—probably hundreds of thousands of someones—with good enough ideas to go all the way. It will be done again—over and over, providing that someone wants it badly enough to do what it takes to get there. It’s all a matter of attitude and the capacity to constantly study and question the management of the business.

Jeff Bezos started Amazon just two years later. After eight years on Wall Street, Bezos dreamt up Amazon during a drive from New York to Seattle in 1994. His wife (now ex-wife) MacKenzie drove, and Jeff “tapped out a business plan on his computer along the way.”

Amazon began as a loss-making book e-tailer at the dawn of the commercial Internet and as the dot-com poster child in the late ’90s. It has since evolved into one of the world’s most valuable companies. Amazon has come a long way from its genesis as the curse of bricks-and-mortar booksellers and has diversified broadly into just about every adjacent business it could get its hands on.

Bezos’s and Amazon’s dominant leadership values echo those of Sam Walton and Wal-Mart: frugality, a bias for action, long-term focus, motivating staff to think like owners, and customer obsession.

The Everything Store (2013,) Brad Stone’s excellent chronicle of the rise of Amazon notes, “In his autobiography, Walmart’s founder expounds on the principles of discount retailing and discusses his core values of frugality and a bias for action—a willingness to try a lot of things and make many mistakes. Bezos included both in Amazon’s corporate values.” On an earnings call, Bezos famously declared, “there are two kinds of retailers: there are those folks who work to figure how to charge more, and there are companies that work to figure how to charge less, and we are going to be in the second, full-stop.”

All along, Bezos has made big bet-decisions that hurt it in the short term but created value in the long term. Amazon’s market capitalization has rocketed up from $4.55 billion in 2001 to $1.08 trillion before the Coronavirus/COVID-19 infected the stock markets. Amazon’s secret, in Bezos’s words, is,

We are genuinely customer-centric, we are genuinely long-term oriented and we genuinely like to invent. Most companies are not those things. They are focused on the competitor, rather than the customer. They want to work on things that will pay dividends in two or three years, and if they don’t work in two or three years they will move on to something else. And they prefer to be close-followers rather than inventors, because it’s safer. So if you want to capture the truth about Amazon, that is why we are different.

Amazon has not been consistently profitable over the years, and that is a deliberate upshot of how Bezos approaches business. Amazon cycles through periods of substantial investments that beget future revenue growth (with low profits) and periods of increasing profits as its investments ebb.

Bezos has maneuvered Wall Street into believing that he is just getting started—his “Day 1” philosophy has become something of a legend. “A big piece of the story we tell ourselves about who we are is that we are willing to invent … and very importantly, we are willing to be misunderstood for long periods of time,” Bezos asserted at Amazon’s 2011 annual shareholders meeting.

Not all of Bezos’s bets have succeeded. However, investors have come to acknowledge that his long-term initiatives will produce rich results several years down the road. Little wonder, then, that Amazon’s stock has defied short-termism by continually progressing upward even during quarters of little or no earnings.

Postscript: Bezos has been, until recently, the world’s wealthiest person since about 2018. Walton was the richest man from 1985 until his death in 1992. His inheritors, the Walton family, are collectively more affluent than Bezos!

Always Be Ready to Discover What You’re Not Looking For

July 19, 2021 By Nagesh Belludi Leave a Comment

Corn flakes were born (1894) when the Kellogg brothers inadvertently left a pot of boiled wheat overnight on a stove. They passed the flaky dough through bread rollers and baked the flakes to create a crunchy snack.

The Penicillin mold was discovered (1928) by Sir Alexander Fleming, who, upon returning from a vacation, saw a Petri dish that he had left behind without disinfecting. That Petri dish had a zone around an invading fungus where his Staphylococcus bacterium culture had not grown. A mold spore from another lab in the building had accidentally fallen on this culture. The spore had grown while Fleming was away. Rather than throw the dirty Petri dish away, he isolated the mold and identified it as belonging to the Penicillium genus, which kills bacteria by inhibiting new cell walls.

The microwave oven was invented (1945) unintentionally during an experiment by Percy Spencer of Raytheon Corporation. Electromagnetic waves from a new vacuum tube melted a chocolate bar in his pocket while standing next to a magnetron.

Viagra had been developed (1989) as the chemical compound sildenafil citrate to treat hypertension and angina pectoris. Researchers found during the first phase of clinical trials that the compound was good for something else. It was approved for medical use in 1998.

Serendipity is a rich idea that is very central to the creative process. Lots of ideas evolve when you’re working on something unrelated. Physiologist Julius H. Comroe Jr. once said, “Serendipity is looking in a haystack for a needle and discovering a farmer’s daughter.”

Idea for Impact: Creativity is a disorderly journey. Much of the time, you may never get where you’re going. You may never find what you hope to find. Yet still, you must stay open to the new and the unexpected.

Explore how to transform serendipitous ‘mistakes’ into breakthroughs.

Don’t Try to Convince Every Potential Customer

June 16, 2021 By Nagesh Belludi Leave a Comment

Many entrepreneurs believe that their innovation is so unique and valuable that the whole world will want it, and if a potential customer won’t get it within seconds, it’s only a question of hammering it into their heads.

Don’t try to convince every potential customer to buy your product or service. If they get your innovation within, say, three minutes—excellent. If not, move on.

As you go about selling your product or service in the early stages of your business, you may find specific customers who will get what you’re doing. They’ll cheerfully buy your solution if they could be convinced that your solution can solve a problem they have (or if you can help them recognize a problem that they have but don’t see it yet.)

If you’re starting out, such customers will be your early adopters. At this stage, they’re the ones that are your biggest fans (or critics) and can be an enormous asset for gaining traction by word-of-mouth.

Idea for Impact: Instead of misusing your marketing efforts on convincing all those who don’t get it and may never get it, laser-focus on identifying, courting, and engaging the early adopters.

The Truth about Being a Young Entrepreneur

May 24, 2021 By Nagesh Belludi Leave a Comment

I think we should start telling our young people that getting into business is hard.

Let’s stop pumping them up, “Go for it, kid. This is awesome. This is going to be the best thing you’ve ever done. If X can do it, you can do it too. You’re going to smash it.”

Entrepreneurs have a tendency to over-confidence, and the over-confident tend to be socially and culturally primed for entrepreneurship.

Fact is, most first-time entrepreneurs wish that someone had told them how hard it was going to be. Ideas are a dime a dozen. When real-life replaces daydreams, researching, experimenting, taking on customers, building a team, gaining wisdom, and getting cash in the door are all awfully difficult. Most self-employed people put in very long hours and worry about their work, even outside of work. Entrepreneurship simply isn’t for everyone.

America is fascinated by entrepreneurs. But the successful-young-entrepreneur narrative has generated a false affirmation that sets up people for disappointment when they encounter reality.

In recent years, we’ve seen more young people diving into the startup realm. Yes, young entrepreneurs have lower opportunity costs and a better sense of the new generation’s needs. But they don’t have the network, mature frame of mind, industry insight, and adequate financial resources vital to success. Indeed these factors are why older entrepreneurs tend to have a substantially higher success rate.

Let’s stop creating false hopes for young people who don’t realize how difficult business—even a one-person-shop—is. Yes, encouragement is essential, and it can go a long way in helping people succeed. However, let’s lend support to reality and not a myth.

Idea for Impact: If you have the entrepreneurial itch, don’t become quickly sold on tales of grandeur.

Don’t build a startup to become a trend.

Don’t quit your day job yet—especially if your business idea is a spin-off from your present occupation or you intend to turn a hobby or a particular interest into a thriving business.

Don’t give up that steady paycheck until after you’ve built a side hustle.

Don’t listen to the superstars.

Tweets, Egos, and Double-Crosses: Summary of Nick Bilton’s ‘Hatching Twitter’

April 26, 2021 By Nagesh Belludi Leave a Comment

I spent the weekend reading New York Times technology writer Nick Bilton’s captivating Hatching Twitter: A True Story of Money, Power, Friendship, and Betrayal (2013.) This tome exposes the dark side of Twitter’s tense founding and the relationships amongst the company’s four founders, Evan Williams (@Ev,) Jack Dorsey (@Jack,) Biz Stone (@Biz,) and Noah Glass (@Noah.)

Personal ambitions unleashed a barrage of backstabbing

This motley crew of four San Francisco transplants chanced upon one another when trying to make it in Silicon Valley and became close friends. They started Twitter in 2006 as a side project at Odeo, an ailing podcasting business bankrolled by Evan Williams. With an appealing—albeit frenzied—startup idealism and naïvete, they forged ahead with the notion of a platform that offered everybody an equal voice in 140 characters.

However, when Twitter began to gain traction as a status-sharing service, tensions quickly emerged between the co-founders. The four founders came to blows over just what Twitter was supposed to be and for the right to be recognized as having conceived it.

Lesson #1 from Twitter’s founding: Never mix business and friendship

The Twitter team’s infighting almost tore the microblogging company apart on more than one occasion in its early days. There was even acrimony over who got to sit by First Lady Michelle Obama at a Time 100 Most Influential People soiree.

Noah Glass, the “forgotten founder,” championed it initially and conceived Twitter’s name. Awkwardly, he was booted out before the startup even incorporated. He was left empty-handed from the contraption he had built and fought for when it was still an idea.

Biz Stone, the tactician and go-between, threatened to quit out of disgust with the infighting.

Hatching Twitter is particularly sympathetic to Evan Williams. He bankrolled Twitter as a fork of Odeo. He pivoted Twitter as a means for talking about what is happening in the world. Williams goaded it to prominence simultaneously as he tried in vain to keep Dorsey’s egotism in check.

Lesson #2 from Twitter’s Founding: Self-sabotage can undermine your hard work

For Jack Dorsey, Twitter was always about telling other people what you were doing and making them feel less alone. Williams chose Dorsey as CEO when Twitter formally became its own company. However, their relationship quickly soured. Dorsey failed to address Twitter’s early technical flaws, even as he took plenty of time to pursue hobbies outside of work. Twitter’s venture investors and Williams ultimately overthrew Dorsey.

Dorsey got bitter and launched another startup called Square (it’s now a thriving digital payments company.) Exploiting the public confusion about his role as Twitter’s chairman (albeit without a vote on the board,) Dorsey went on a media blitz to promote himself as Twitter’s sole inventor and the platform’s real brain.

Author Bilton makes Twitter’s founders seem so inept that one marvels at how the company got anywhere. But even as Dorsey and Williams squabbled, Twitter’s users set in motion a cultural phenomenon through retweets, @replies, and #hashtags. These three precepts gave Twitter its unique depth, scope, and versatility.

Later on, Williams got the boot in a coup d’etat orchestrated by a guileful Dorsey. He returned as Twitter’s executive chairman alongside a new chief executive. Dick Costolo, a former professional comic, made Twitter a revenue-earning business and steered it to an IPO.

Lesson #3 from Twitter’s Founding: Distribute credit—There’s plenty to go around

Interpersonal conflicts are the black ice of startups. Individual styles and priorities that are at odds with other founders can cause much drama in entrepreneurship. At the startup companies that I’ve been involved in, rifts have often forced co-founders to press mediators into their service and learn how to embrace conflict and establish boundaries.

When things are going well at any startup, everyone’s too busy to have much to disagree about. When the startup hits the skids, disputes pop up even where you’d least expect them. Some 65% of startups are suspected of failing because of interpersonal tensions within the founding team.

Hatching Twitter excels in shining a light not just on the founders’ conflicting personalities but how their individual dispositions affected what Twitter became:

Jack had the germ of the idea, of people sharing their status … Without Noah’s vision of a service that could connect people who felt alone, and a name that people would remember, Twitter would never exist. It was Ev who insisted on making Twitter about ‘what’s happening ..’. and without Biz’s ethical stance … Twitter would be a very different company.

Hatching Twitter, The Company That Almost Wasn’t

Recommendation: Quick-read Nick Bilton’s Hatching Twitter (2013.) It’s a fast-paced, entertaining back-story to how Twitter was founded and the drama caused by its founders’ personality conflicts and all the alliances and ousters and betrayals.

Nick Bilton tells an exciting saga of rivalries turning to fallings-out, hubris unfolding. As great wealth is built and lost, Facebook’s Mark Zuckerberg notes, “[Twitter is] such as mess—it’s as if they drove a clown car into a gold mine and fell in.” Bilton is gossipy, and his narrative tends to theatrical—an undeniable fodder for an inevitable Hollywood adaptation.

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Entrepreneurs

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Idea for Impact: Think complex, speak simple, decide better.

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Far from lamenting his ADHD, David Neeleman celebrated it

Idea for Impact: Don’t let your weaknesses stop you from reaching your life goals.

Wondering what to read next?

Wondering what to read next?

Wondering what to read next?

Wondering what to read next?

Idea for Impact: If you have the entrepreneurial itch, don’t become quickly sold on tales of grandeur.

Wondering what to read next?

Personal ambitions unleashed a barrage of backstabbing

Lesson #1 from Twitter’s founding: Never mix business and friendship

Lesson #2 from Twitter’s Founding: Self-sabotage can undermine your hard work

Lesson #3 from Twitter’s Founding: Distribute credit—There’s plenty to go around

Hatching Twitter, The Company That Almost Wasn’t

Wondering what to read next?