Podcast recommendation: Econtalk – Andy Matuschak on Why Books Don’t Work

This is a fantastic interview that takes Andy Matuschak‘s controversially titled essay as a springboard for a not-really-controversial but fascinating discussion of teaching, learning and tech informed by Matuschak’s work at Kahn Academy.

Highly recommend. Highlights to follow.

Resource: Seth Godin on Systems Thinking

Akimbo Season 4 Episode 20 (July 10, 2019) – Systems Thinking

This is a great episode of riffs on how systems create – and constrain – possibilities, and the opportunities that open up when systems change. Featuring Mr Heinz and the fictional (!) Betty Crocker.

Akimbo Season 4 Episode 18 (June 26, 2019) – Find the others: Apollo 11 and the making of culture

This episode isn’t flagged as an episode about systems or systems thinking, but that’s really what this telling of the story of going to the moon is all about. We watch the Space Race grow out of the wreckage of the Second World War and unfold across a network of more-and-less-and-un- expected connections within the complex adaptive systems of science, science fiction, culture and politics. I loved it.

Highly Recommend.

They’re (not quite) taking our jobs: Tim Harford on robots, spreadsheets and automation in the workplace

These are two great episodes from the BBC’s excellent 50 Things that Made the Modern Economy.

Episode: Robot

The robots are coming! Sort of. Featuring Baxter and the Jennifer headset.
More on Baxter here at WIRED.

Episode: Spreadsheet

Fantastic discussion of how the humble spreadsheet destroyed over 400,000 American jobs… and helped to create 600,000 more.

Resource: Tim Harford on 50 Things that Made the Modern Economy

If you haven’t thought much about economics, this series from the BBC is a first-rate introduction to a lot of key ideas about how markets work.

Each episode is about ten minutes long and features at least one interesting, often entertaining and sometimes surprising ‘thing’ to illustrate fundamental principles of economics.

There are lessons galore about how technologies take off and spread, change culture, transform the environment (human and physical) for both good and ill, and the unpredictable nature of emergent order and complex adaptive systems.

Seasons one and two are here at the BBC, and downloadable free wherever you get your podcasts.

There’s also a book (amazon).

Tim Harford is great – The Undercover Economist and More or Less (also on the BBC) are well worth checking out too.

Marc Andreessen: the test

More from Marc Andreessen’s brilliant interview on The Moment with Brian Koppelman. This time: how breaking into the network in order to get funding isn’t so much a symptom of cronyism as a test of fundamental attributes that a fundraiser will need to be successful.

Marc: In the financing business, like, we are dying to finance the next great startup. Like, people talk about like venture capitalists; it’s you gotta run on these gauntlets to do it or like it’s so, you know, they fund all this…you know, we’re dying to fund the next Google. Like, we can’t wait. So just for god’s sake, figure out a way to build it and bring it to us. Please!

Brian: Right. Though, to get to you, somebody has to be credibly recommended to you.

Marc: Okay, so then this gets to a concept that I talked… So this goes directly what we’re talking about. So you described the process of getting you to read somebody’s screenplay. And basically it’s they have to be a referral. There should be some sort of warm referral.

Brian: Either a referral, or the only other way is over a period of time, you’ve impressed me somehow yourself.

Marc: Yeah, exactly right, independent of this specific thing that you’re trying to create. So, it’s sort of a very similar thing in venture, which is, I mean, there are certain people where it’s just like, the reputation precedes them, and they want to come in to pitch us, we’re gonna take the pitch. And some of those people, by the way, you discover on Twitter. Like, so that’s a real thing.

But more generally, it’s a referral business. And I figured this out early on, when we were starting, I talked to friends of mine at one of the top firms in the industry that’s now a 50-year-old venture firm, one of these legendary firms and they said, in the entire history of the venture firm, they funded exactly one startup pitch that came in cold, right, over 50 years. Now, they funded like a thousand that came in warm and they funded one that came in cold.

And so anyway, so that’s like, okay, well, again, isn’t that unfair? Like, okay.

So that’s why I get into what I call the test, with a capital T, The Test. And The Test is basically, the test to get to us, to get into VC is can you get one warm introduction? Just one. And in our world, you know, your world is agents or whatever or other creatives — in our world it’s an angel investor, it’s a seed funder, it’s a professor, it’s a manager at one of the big existing tech companies, right?

Brian: Someone you think is smart.

Marc: Yeah, somebody I think is smart.

Brian: And knows people.

Marc: But there are thousands of those people out there who I will take that call for.

Brian: Like, I could call you and tell you, but somebody… By the way, I won’t. Let me just say, clearly, I will not!! <laughs> But you have this world…

Marc: You could. Somebody, like, if a director of — I don’t know, there’s like, 1,000 executives at Facebook; Facebook is like a 40,000-person company, it has like, 1,000 executives at Facebook in decision-making capacity — if any one of the thousand calls up and says, “I got this kid I think you should meet.” It’s like, “Yes, I’ll take that meeting.” So it’s like, and again, it’s just one, right?

And so the test is, can you get one person to refer you, right? And it’s like, okay, like… think of the number of ways you could get one person to refer you, you could go get a job and you could go impress a manager and then that manager makes the call.

Brian: That is an incredibly good test, by the way.

Marc: And if you can’t pass the test, The Test, to get a warm inbound referral into a venture firm, then what that indicates is, you are gonna have a hell of a time as an entrepreneur. You are gonna hate being an entrepreneur because guess what you have to do, once you raise money. We’re the easy — I always say like, we’re the easy part of the process.

Once you raise money from us is when the pain begins. And the pain is trying to get other people to say yes to you. The pain specifically is trying to get people to work for you. And they all have choices, right? And so you got to convince them to come work for instead of somebody else; to try to get a customer to buy a product, and the customers are overwhelmed with new products they could buy… and so to actually sell something to somebody. And then at some point, you’re gonna have to raise money again, right? And you raise money from new people each round. At some point you’re gonna have to go get somebody else to say yes.

And so, if you can’t get a warm inbound to us, how are you possibly going to be able to function in the environment in which you’re now gonna be operating, where you’re gonna have to get all these other people to do stuff for you. And so that’s the thing.

Marc Andreessen and Brian Koppelman

Resources: Software is eating the world

WTF?! In San Francisco, Uber has 3x the revenue of the entire prior taxi and limousine industry.

WTF?! Without owning a single room, Airbnb has more rooms on offer than some of the largest hotel groups in the world. Airbnb has 800 employees, while Hilton has 152,000.

WTF?! Top Kickstarters raise tens of millions of dollars from tens of thousands of individual backers, amounts of capital that once required top-tier investment firms.

WTF?! What happens to all those Uber drivers when the cars start driving themselves? AIs are flying planes, driving cars, advising doctors on the best treatments, writing sports and financial news, and telling us all, in real time, the fastest way to get to work. They are also telling human workers when to show up and when to go home, based on real-time measurement of demand. The algorithm is the new shift boss.

Tim O’Reilly –The WTF Economy

This phrase comes from a 2011 Marc Andreessen article in the New York Times, which you can read here. In it he describes how software was – and is, and will continue to – take over the economy. Here are a few more WTF illustrations:

  • The world’s largest bookstore is a software company
  • Two of the world’s three biggest retailers are software companies
  • Five of the U.S.’s eight biggest companies are software companies (Alphabet/Google, Apple, Microsoft, Amazon, Facebook)… some of them even make and sell software.
  • The world’s biggest Encyclopedia is mainly software… and not even a company

Conclusion / Questions:

  • How are you using software in your non-software organisation?
  • What would it enable if you thought of your organisation as a software company?

See Also: WTF? Technology and you

Resource: Zoom video conferencing

I’m late to the party on this, but I recently attended a webinar using Zoom for the first time. My (Jakarta) internet connection is often patchy, and Skype and WhatsApp calls quite often go to pieces, but Zoom held up perfectly and with minimal lag. Impressed, will use again.

Ben Horowitz – The Hard Thing About Hard Things

This is a great cut-the-crap book about management and building a company. It’s most relevant to the the tech world, but there are plenty of gems here that are relevant to anyone – he’s especially good on shaping your culture (hint: yoga at work is not your organisational culture).

Here’s the introduction:

Every time I read a management or self-help book, I find myself saying “That’s fine, but that wasn’t really the hard thing about the situation.”

The hard thing isn’t setting a big, hairy, audacious goal. The hard thing is laying people off when you miss the big goal.

The hard thing isn’t hiring great people. The hard thing is when those “great people” develop a sense of entitlement and start demanding unreasonable things.

The hard thing isn’t setting up an organizational chart. The hard thing is getting people to communicate within the organization that you just designed.

The hard thing isn’t dreaming big. The hard thing is waking up in he middle of the night in a cold sweat when your dream turns into a nightmare.

The problem with these books is that they attempt to provide a recipe for challenges that have no recipes. There’s no recipe for really complicated, dynamic situations. There’s no recipe for building a high-tech company; there’s no recipe for leading a group of people out of trouble; there’s no recipe for making hit songs; there’s no recipe for running for president … and there’s no recipe for motivating people when your business has turned to crap.

That’s the hard thing about hard things: there is no formula for dealing with them.

Nonetheless, there are many bits of advice and experience that can help with the hard things.

I do not attempt to present a formula in this book. Instead, I present my story and the difficulties that I have faced.

I share my experiences in the hope of providing clues and inspiration for others who find themselves in the struggle to build something out of nothing.

Ben Horowitz – The Hard Thing About Hard Things

Highly recommend.

Listen to the technology: Kevin Kelly and the giant copy machine

Technology often has built in biases, certain ways that it wants to be used. So the internet is the largest copy machine in the world by nature. It’s inherent in the thing. Anything that can be copied it that touches it will be copied.

So don’t fight that – work with it. Work with the fact that copies are promiscuous and it’st just going to go everywhere, it’s a superconductor for copies. You can’t battle against that, you have to say “okay, we can see how it is.”

Within the first four or five years it was clear that this was the way it was going to be… can you imagine if the music industry had accepted that from the front? It would have been amazing. They’re just coming around to it now, but [imagine] how far ahead they would have been if they’d just said “okay, this is inevitable, this copy thing. We’re just going to try to work with it. There’s thing to adjust, but let’s accept it.”


Kevin Kellya16z podcast: Not If, But How – When Technology is Inevitable

Further reading: The Technium: Better Than Free – 8 ‘generatives’ to thrive in a world of free copies.

See also:

Cutting edge – learning and change

The edge on a knife is important – it’s the sharp end (okay, side) where the cutting actually takes place. It needs to stay sharp, and keeping it sharp takes care and regular maintenance because it dulls quickly from use and corrosion.

The other parts of the knife – spine and heel, bolster, tang, handle – receive less attention. They change more slowly and require less maintenance but are more important in the long run: a sharp edge on a bad knife doesn’t last for long.

The person using the knife is more important again. They decide the important things: what and where and when to cut, and who or what we cut for. They keep the knife sharp or let it rust.

These things are true of most of the tools we use, and of our skills.

Cutting-edge skills – using the latest technology or media, understanding the thing that’s on everybody’s mind – will help you cut, but they’ll change relatively quickly, meaning that you’ll need to work on them regularly to keep them sharp.

Deeper skills last longer. Critical among these are structural literacy of the world in general and your field in particular, an understanding of systems and people, and communication and leadership skills. These skills – alloyed with curiosity and a commitment to learning – allow you to keep the cutting edge sharp and to help others to do the same. Without them you’ll have – at best – a sharp edge on a cheap knife.

Deeper still, ask questions of the person holding these tools: what will you use them to achieve, where, when, and who or what for? A good knife is worse than a bad one in the wrong hands, or in the wrong place at the wrong time.

It might help to work backwards from the cutting edge:

  1. Which skills do I feel pressured to acquire? Which activities do I feel the world is pushing me to do?
  2. How do these fit into the bigger picture and broader trends? If I don’t have it already, where can I acquire the structural literacy to be able to answer that question?
  3. Is this even a game I want to be in in the first place? How does it square with my values? What’s the hard and important part of the work that I do, and will this technology make a difference to that – is it signal or noise?