Seen.
Bleeding Edge.
A company providing business-to-business services decided to try a new business-to-consumer model.
After researching the market and running pilots, the team were honest about what the data said: it didn't work.
They reached this conclusion in a few weeks. So the initiative failed.
But it failed fast. They still had time to work out what they had learned. A new plan emerged to enter a new business-to-business market. They did this fast too, and so far it's working for them.
Many founders are looking for pivots. Many need to move fast, and resources are limited.
For us, this was a great example of "plan-do-check-act." Doing this well depended on a culture that allowed risk and failure. This let them look at data honestly, fail fast, learn, and move on quickly.
Read.
Edge of Chaos.
The Economist this week featured an article about Reed Hastings and the culture at Netflix, which he co-founded in 1997.
His approach of radical transparency and high trust has been part of what has driven Netflix's growth. For example, Netflix has always shared full financial detail with employees.
This includes information that could break stock exchange rules if leaked. Reed considers it worth the risk, because it means everyone at Netflix is clear about how things are going and clear about what they need to do to make it better. And so far, nothing has ever leaked.
Others companies go further still; even sharing employee salary information openly.
What level of transparency do you offer in your business? How does that work for you?
Learned.
Chaos Engine.
The world seems ever more chaotic.
In mathematics chaos describes extreme sensitivity to initial conditions. In other words, tiny changes can lead to very different outcomes. Chaos also isn't random. Chaos has patterns in it.
So how do we manage chaos?
A metaphor we found useful was taken from a classic example of a chaotic system humans have conquered for years: storm waves on the ocean.
A captain navigating a ship through a storm stands on the bridge, eyes fixed on the ocean. Reading the patterns. Though the journey may be weeks long, right now decisions are made second by second. Looking always for the opportunity to crest the next wave.
For the captain, chaos is just a complex and rapidly changing pattern of opportunities. Seizing them requires attention and decision. In that order. Repeatedly.
Don’t forget to check out the accompanying podcast version of #founderhacks for a tantalising live experience of team atomex!
