Conference: small stages

Good conferences create a range of stages for members of the cohort to try things out on. Workshops, seminars and meetings happening alongside the keynote and plenary sessions create value for presenters (a chance to meet interested people and try out material) and for the cohort (a testbed for discovering new ideas, finding new contributors and new speakers and leaders).

If you’re organising a conference, it’s worth being deliberate about making an on-ramp of smaller opportunities and chances for attendees to contribute.*

*The focus needs to be on contribution – opportunities for members of the cohort to share something valuable with peers, rather than to get on their own private soapbox or achieve five minutes of fame.

Resources: Clayton Christensen on disruptive innovation

Clayton Christensen’s The Innovators Dilemma is a business classic, providing a framework for understanding how technological or business model innovations (or more usually, both) allow new businesses to gain a foothold in markets or to create new ones.

It’s been hugely influential – and has come in for its share of criticism.

This post contains links to a range of resources for getting up to speed with disruptive innovation, as well as some of Christensen’s other theories – particularly his ‘jobs to be done’ view of markets and product development, and modularity theory.

The Christensen Institute:

Brief introductions to:

… and some decent blog posts illustrating some of these topics in different fields

Talk at Google

This is my favourite overview – Christensen covers most of his key ideas clearly and with humour.

At Startup Grind

On how to build a disruptive business…

And talking with Marc Andreessen about his ideas:

On the a16z Podcast

Highly recommend these episodes:

  1. Beyond Disruption Theory: Marc Andreessen and Ben Horowitz talking about how disruption theory has been important to them, with other insights into entrepreneurship in general:

2. Competing Against Luck: Another conversation with Marc Andreessen about how the Christensen’s understanding of disruption theory has evolved

At Said Business School, Oxford

I’ve just discovered these while writing this post – will add a note later once I’ve watched them.

Lecture 1: Disruptive Innovation:

Lecture 2: Management

Lecture 3: The Process of Research

Value: more of more?

  • Make something useful
  • For lots of people
  • Capture some of that value so that you can do it again

The more useful what you do is, for more people*, the greater the potential is for your organisation to be sustainable and successful.**

BUT you probably need to start by building something small first: the minimum viable product for the minimum viable audience.

*An resource or innovation that only exists in your head isn’t useful… yet.
**That is, if you get the wrapper – structure, systems, money flows – in the right alignment.

Charles Koch on creating value for others and always getting better

The starting point is to understand what capabilities you have that others will value, that you can use to create value for others.

And then to find the opportunities for those capabilities that will create the most opportunity for others and particularly those who will reward you for that value.

So the ideal for business is to maximise the value that you create for others, and your profit would come solely as compensation for that value you’re creating for others, and then to continually improve and add to those capabilities, and look for, based on that, what other opportunities are there for which you can create superior value.

So there are two components then: one is to become preferred partner for all your key constituencies. That starts with customers but includes employees, suppliers, communities and society as a whole.

And the second piece is to continually transform yourself. So our philosophy is if we in a business or you as an individual are working in an area, if you’re the best in the world, it’s not good enough. And particularly today, with rapid improvements in technologies within year or wo you’re going to be obselete if you just rest on your laurels. So you’ve got to be constantly thinking on how do I improve, how do I do things differently, what are the new opportunities.

If we’d just stayed with the crude oil gathering… we’d be out of business now. It’s by applying these principles of human flourishing to create these beneficial cycles focusing on how do I create value for all my constituencies – particularly those who will reward us for the value we create for them – is what has enabled us to do what we’ve done.

Charles Koch – The Tim Ferriss Show #381

Peter Drucker on social responsibility

A business that does not show a profit at least equal to its cost of capital is irresponsible; it wastes society’s resources. Economic profit performance is the base without which business cannot discharge any other responsibilities, cannot be a good employer, a good citizen, a good neighbor.

But economic performance is not the only responsibility of a business any more than education is the only responsibility of a school or health care the only responsibility of a hospital.

Every organisation must assume responsibility for its impact on employees, the environment, customers, and whoever and whatever it touches.

That is social responsibility. But we also know that society will increasingly look to major organizations, for-profit and non-profit alike, to tackle major social ills. And there we had better be watchful, because good intentions are not always socially responsible. It is irresponsible for an organisation to accept – let alone to pursue – responsibilities that would impede its capacity to perform its main task and mission, or to act where it has no competence.

Peter Drucker – Managing in a time of Great Change

The soft option

Your desire to be generous to others is a great motivator to excellence: if you’re serious about ensuring that the externalities of your project are consistently positive, you’re going to need to be doubly good at what you do.

You need emotional energy and time to spare to listen well, to be gracious under pressure, to be the kind of employer or customer that helps your team or partners to do their best work.

It takes discipline to do this kind of emotional labour day in, day out. You need to be clear about what you’re doing and how and why, plan for it, and be deliberate about doing it consistently. You need to find ways to articulate your values to people inside and outside your project.

You need to be hard-headed about being soft-hearted.

Externalities

We’re familiar with the externalities of industrial production and consumption. They’re fairly predictable, and often visible. Even air pollution, the silent killer, is usually visible when it happens, before the poison spreads. It’s a perfect example of a negative externality – something put into the world that everyonepays for, not just the producer or the consumer.

What are the externalities of your project, program or product? What invisible outputs do you have?

  • What does your way of working with users, customers or clients say that your words leave out? How do they see you seeing them? Do they leave feeling smaller, more pressured, less competent – or with a greater belief in their ability to get better and to make a difference? (As you teach that vital knowledge and share those crucial skills, what else are you teaching?)

  • As you manage your team, how do they feel when they leave the office? What do they take home with them? What are your externalities for their families, friends and neighbourhoods?

    • What about your suppliers – the people who serve you as you serve others. What externalities do you have for the people in the photocopy shop, the electrician who comes to the office, or for your cleaners?

  • What about your suppliers – the people who serve you as you serve others. What externalities do you have for the people in the photocopy shop, the electrician who comes to the office, or for your cleaners?

Not polluting – ‘do no evil’ – isn’t nearly enough.

W. Brian Arthur on combinatorial innovation

The idea … that we have is that there’s some genius in an attic… cooking up technology and coming up with inventions.

But it started to become clear to me having looked in detail at some inventions is that technologies in a way come out of other technologies. If you take any individual technology, say like a computer in the 1940s, it was made possible by having vacuum tubes, by having relay systems, by having very primitive memory systems… All of those things existed already.

So it seemed to me that technology’s evolved by people not so much discovering something new or discovering, but by putting together different Lego blocks so to speak in a new way. Once something’s been put together, like say a radio circuit for transmitting radio waves, it can be thrown back in the Lego set. And occasionally then some of the new combinations would get a name and be tossed back in.

Things like gene sequencing were put together from existing molecular biology technologies and then that becomes a component in yet other technologies…


W. Brian Arthur – a16z podcast

What’s already out there that you could combine to do something in a new way?

How do you keep an eye out for new Lego?

What do you make that you could throw into the Lego set for others?

Strategy: from ideas to value propositions to business models

Ideas are easy. Ideas are free, they’re everywhere. The hard thing is turning ideas into value propositions that customers want, and business models that can scale.

How many projects do I need to invest in to create the next growth engine?

It turns out, you’d actually need to invest in 250 projects. You start with small bets first, and then gradually you filter out those ideas that don’t work, not based on a beautiful powerpoint presentation but based on evidence from the market. And gradually you’ll get to those that win. So the big lesson here is that you can’t pick the winners. You need to invest in “the losers”.

Where do I take this data from? … If you look at early stage venture investment, which is a great proxy, 65 percent of all ideas fail. 25 percent return a little bit of capital, so you invest 100 you may get 500 back. So where do the outliers come from? It’s from a small number … it’s basically four out of a thousand, or one out of 250 [that provide massive returns].

So if you want growth to happen, you need to create the playground, the boundaries, for these ideas to emerge. You need to allow people to experiment and have projects in parallel, so that you can win. That’s what strategy is about: creating the conditions for ideas to emerge. It’s not “hey this is a good idea, we make a big bet, and we execute.”

There are only a few companies in the world that have created these conditions, and it’s not a miracle or a coincidence that Amazon has grown so quickly, because when you have a leader who says “Amazon is the best place in the world to fail” and he admits that “invention and failure are inseperable twins,” you have a completely different culture for those ideas to emerge.

Alex OsterwalderGlobal Peter Drucker Forum 2018

Old year’s resolutions

  • What can you tick off already? Good work on those.
  • What do you need to quit – stop doing, stop trying to do, draw a line under, declare an amnesty for yourself, admit that it won’t get done, and let die with the old year?
  • Perhaps most crucially, what are the little things – acts of kindness that you’ve been thinking it might be nice to do, short emails to friends, decisions, bookings, commitments – that you can do, and get into the habit of doing, starting from right now? Today, the day before you make new year’s resolutions, everything you do is a bonus, a gift of the momentum that a frontlog brings that will make tomorrow better or easier for your future self – the self who’s arriving tomorrow.