Elon Musk says “It is better to make many decisions per unit time with a slightly higher error rate, than few with a slightly lower error rate, because obviously one of your future right decisions can be to reverse an earlier wrong one, provided the earlier one was not catastrophic, which they rarely are.”
**WRONG! As you scale, you need to focus on building three assets: Credibility, Capability and Cashflow. Hasty decision-making not only costs you in credibility and capability, but will impact your cashflow. And it only takes one erroneous decision to have a catastrophic outcome… where people die. Case in point: Boeing. #scaling#strategy#execution
Just got off a coaching call… Of course, a necessary condition for business success is that “money coming in” is greater than “money going out”. But DON’T call this “profit”. #Profit is revenue minus expenses, and is used to calculate tax owed at the end of an accounting period. What is more important, especially in the initial stages of #scaling, is #cashflow: the cash on hand at a given moment. You can sign a potentially profitable contract, but be hung out to dry because you don’t have the cash flow in hand to deliver.
#scaling, is #cashflow: the cash on hand at a given moment. You can sign a potentially profitable contract, but be hung out to dry because you don’t have the cash flow in hand to deliver.
Present positive cashflow is more important than future potential profits.
Discussion inspirante avec Bruno-Pierre Privé et Arnaud Bertrand. Des fois on se fait prendre dans le cadre mentale d’un produit = une entreprise. Une stratégie alternative serait de créer un écosystème de micro-firmes interconnectées qui offrent une valeur ajoutée synergique beaucoup plus durable que ce qui se ferait dans une seule organisation monolithique. Le débat #monolithic vs #microservices s’applique aussi bien au modèle d’affaires et organisationnel.
Sometimes the “one-product = one-business” frame of thinking precludes a better #strategy. It may be advantageous to create an ecosystem of micro-companies which map closer to the client’s real #JobToBeDone. Together the synergy of the networks creates more real and sustainable added value, compared to trying to shoehorn everything under one roof. Thanks BP and Arnaud, founders of OfficiumLIVE.
I will be mentoring at this year’s Coopérathon 2018 (Finance). As part of the mentor process, they sent me a short profile survey. Thought I would share it here, too:
Qu’est-ce que vous faites dans la vie ?/ What makes you jump out of bed in the morning ?(what motivates you in life/ what do you do in life)
Fondateur du “The Scaleup Project” – une communauté de passionnés qui aident les innovateurs à bâtir des entreprises d’impact et de conséquence dont ils peuvent être fiers.
// Founder of “The Scaleup Project” – a community helping innovators to build businesses with impact and consequence of which they can be proud.
Qu’est-ce qui vous tient éveillé tard le soir ? / What keeps you up at night? ( what are your current challenges)
J’écris un livre pour communiquer une nouvelle approche à la croissance des entreprises innovantes
// I’m writing a book which explores a fresh approach to scaling innovative ventures.
Qu’est-ce que le Coopérathon peut apporter à notre communauté? / What can Cooperathon bring to our community?
Le Coopérathon est un appel aux armes pour encourager les innovateurs, autant les novices que les chevronnés, à passer à l’action dès aujourd’hui.
// The Coopérathon is a call to arms for all innovators, be they novice or experienced, so that they move into action, today.
Quelle ambition as-tu pour le monde de ”demain”? / which ambition do you have for tomorrow’s world?
Les solutions pour les grands défis auxquels nous faisons face ne viendront pas de nos leaders politiques ni des PDG de la vieille garde… C’est au tour aux citoyens-entrepreneurs de créer l’avenir dont ils rêvent.
// The solutions to our huge challenges will not come from politicians or the old-guard CEOs. It’s time for citizen-entrepreneurs to get moving and build the future they dream of.
Quel conseil donneriez-vous à quelqu’un souhaitant lancer son projet ? / What would be your advice to someone launching a new innovative project today?
Tombez en amour avec ce que votre utilisateur essaie de faire. Comment pouvez-vous l’aider à vivre un impact positif et mesurable qui touche même son entourage et au-delà?
// Fall in love with your user’s “job-to-be-done”. How can you empower your them to experience a positive and measurable impact which even goes beyond their circle and out to the community?
Qu’est-ce que ça signifie pour vous , ”entreprendre” ? / what does it means for you to ”start up” ?
Entreprendre c’est un engagement à changer l’avenir. Il faut le prendre au sérieux.
// Entrepreneurship is a commitment to change the future. Don’t take it lightly.
As I am building The Scaleup Project, I’m struggling with the reality that TSP is more than a business.
I guess it’s my ego which imagines me wearing Colonel slipons as the CEO of a tightly disciplined team, each one saluting me with a jaunty “Yes, Sir!” at my every instruction.
But this 1960’s view of business cannot work as we warp-speed towards the 2020s. I’m dealing with a group of talented adults, each offering a unique experience and skill set. People float in and out of the team according to their needs, our needs and the needs of the entrepreneurs we serve. They are as busy making their impact in the world as I am in making mine.
Traditional org charts cannot work in an agile economy
During my EMBA I applied four times to senior management positions related to entrepreneurship or economic development. I know I brought a fantastic life experience to each organization. I wanted to throw my whole self into each project, to make a difference and leave a legacy. But at each interview I felt as if I had to leave part of me at the door to fit into the job requirement. I was a round peg that could not fit into a square hole. And interestingly enough, three of those four organizations disappeared within a year…
If I don’t fit into an org chart, why am I trying to build one for my own venture?
This is not a trivial concern. It leads to a whole list of questions about how to design this community:
Do I incorporate? If so, with who? how?
What about shareholder agreements? Compensation?
How to develop standards, share information, come to a consensus?
How to share the value we create as a team in a flexible way which reflects what people contribute (beyond just time)?
I’m concerned about encoding too much structure at this early stage because I know that as we scale from preparation to beachhead, there are many unknowns unknowns which will pop up.
10/ Humans are of very low value as cogs in a machine doing identical things in interchangeable ways, on the same clock, on the basis of identical kinds of training to graded levels. That’s for robots.
11/ Humans are most valuable when they have high autonomy, and able to play to their unique strengths and histories, particular sensitivities, op-tempos, and patterns of privileged information
12/ The idea of “wisdom of the crowds” in fact rests on humans having diverse, unique private knowledge bases (foxy!). The madness of crowds kicks in with synchronization and imitation (hedgehoggy!)
13/ Why desynchronize in space? If you are marching in a straight line on a road, and your buddy is clambering over rooftops roughly parallel to you, should he try to move in strictly parallel ways? That would be dumb.
14/ Why desynchronize in time? Different kinds of work have different time constants and generate actionable information at different tempos. Different people are in different emotional states at the same clock time.
15/ Synchronized communication follows from synchronized work: reports on a forced identical tempo. Mandatory meetings. Mandatory annual reviews that must happen in December.
Instead of synchronization, use focused (what he calls “laser-beam”) coordination only when the situation demands it. Laser-beam coordination is expensive in energy and lost opportunity. It is most useful to use when dealing with an urgent issue.
(Not sure where I’m going with this but it’s where I am at this point…)