One of Bezos’s more memorable behind-the-scenes moments came during an off-site retreat, says Risher. “People were saying that groups needed to communicate more. Jeff got up and said, ‘No, communication is terrible!’ ” The pronouncement shocked his managers. But Bezos pursued his idea of a decentralized, disentangled company where small groups can innovate and test their visions independently of everyone else. He came up with the notion of the “two-pizza team”: If you can’t feed a team with two pizzas, it’s too large. That limits a task force to five to seven people, depending on their appetites.
My kids are always starting businesses. They aren’t often successful businesses, but I love their effort and their indomitable spirit.
The lemonade business has been pretty good, but only when they time it right. The front-yard restaurant was surprisingly successful despite them selling only imaginary food. But the rock business! That one was horrible.
Both my kids love rocks. They don’t love rocks so much that they’d be willing to buy one, but their love for rocks is so strong that they believe other people would gladly pay 50¢ for any one of the small stones they’ve pulled from the creek behind our house.
Two winters ago, when the lemonade business wasn’t really a good option, they set up their rock stand and tried selling to passers-by. Whenever anyone would get close, Alex would shout, “Rocks for sale! Get your cool rocks here!”
Unfortunately, there wasn’t enough foot traffic for them to get any real traction, so they decided to take their game on the road. They bagged up the rocks, and started walking around the neighborhood. I tagged along.
The New York Times revealed that college graduates earn 1.8x that of high school graduates with no college. The author concludes that “15 years or 17 years of education [makes] sense as a universal goal.”
The author doesn’t share absolute average earnings for college graduates and high school graduates, but a little googling suggests that high school grads with no college earn an average of around $35,000. So it appears that people can boost their income to an average of $68,000 by earning a college diploma! That’s a huge difference, and it makes for a compelling argument in favor of going to college, right?
As bold as they are, I think they aren’t pushing that logic far enough. If we really want people to be more prosperous, we should have everyone become an endurance athlete!
Fortune says that people who sign up for triathlons earn an average of $126,000 (which is over 3.6x high school grads). Even better, we should have everyone sign up for the New York City Marathon. Those folks earn an average of $130,000 (a 3.7x premium)!
My point, of course, is that earning a college degree correlates with high monetary earnings, but does not necessarily result in earnings. If correlation was causation, we’d be better off encouraging folks to sign up for triathlons and marathons. Endurance events are much much cheaper, and one can prepare for a marathon in less than half a year.
Someone in here claims that the average income of Ferrari owners is $570,000! That’s over 16x the average for high school grads! Ferraris for everyone!
Question: If you had to hire one of three people, and you knew only one thing about each person – that one had a college degree, one had completed a marathon, and one owned a Ferrari – which would you hire and why?
“It’s been a long time gestating,’’ Duany said in a phone interview from San Diego, where he was speaking at a small conference focused on Lean Urbanism. “To get a building built in a city is fantastically complicated. The codes are rigamarole. There is no way you can figure them out yourself. You have to hire lawyers and consultants. So the result is that everything is left to big corporations and big developers.’’
That’s Andres Duany talking about the challenges facing creative, local builders and developers.
I completely agree. Regulation favors big business, and this sort of sludge drives talented entrepreneurs to enter other industries, where they can spend more of their time creating and less of it fighting for the freedom to create.
Some things that smart people never say:
“Only talented screenwriters produce movies.”
“Only talented site work contractors develop real estate.”
“Only talented chefs start restaurants.”
“Only talented carpenters build houses.”
Something smart people often say:
“Only talented programmers start software companies.”
Why is that?
Steve Jobs shares his Parable of the Stones about ideas, execution, and craftsmanship:
You know, one of the things that really hurt Apple was after I left John Sculley got a very serious disease. It’s the disease of thinking that a really great idea is 90% of the work. And if you just tell all these other people “here’s this great idea,” then of course they can go off and make it happen.
And the problem with that is that there’s just a tremendous amount of craftsmanship in between a great idea and a great product. And as you evolve that great idea, it changes and grows. It never comes out like it starts because you learn a lot more as you get into the subtleties of it. And you also find there are tremendous tradeoffs that you have to make. There are just certain things you can’t make electrons do. There are certain things you can’t make plastic do. Or glass do. Or factories do. Or robots do.
Designing a product is keeping five thousand things in your brain and fitting them all together in new and different ways to get what you want. And every day you discover something new that is a new problem or a new opportunity to fit these things together a little differently.
And it’s that process that is the magic.
And so we had a lot of great ideas when we started [the Mac]. But what I’ve always felt that a team of people doing something they really believe in is like is like when I was a young kid there was a widowed man that lived up the street. He was in his eighties. He was a little scary looking. And I got to know him a little bit. I think he may have paid me to mow his lawn or something.
And one day he said to me, “come on into my garage I want to show you something.” And he pulled out this dusty old rock tumbler. It was a motor and a coffee can and a little band between them. And he said, “come on with me.” We went out into the back and we got just some rocks. Some regular old ugly rocks. And we put them in the can with a little bit of liquid and little bit of grit powder, and we closed the can up and he turned this motor on and he said, “come back tomorrow.”
And this can was making a racket as the stones went around.
And I came back the next day, and we opened the can. And we took out these amazingly beautiful polished rocks. The same common stones that had gone in, through rubbing against each other like this (clapping his hands), creating a little bit of friction, creating a little bit of noise, had come out these beautiful polished rocks.
That’s always been in my mind my metaphor for a team working really hard on something they’re passionate about. It’s that through the team, through that group of incredibly talented people bumping up against each other, having arguments, having fights sometimes, making some noise, and working together they polish each other and they polish the ideas, and what comes out are these really beautiful stones.
Do the majority of your leads come from Adwords? Those key words and phrases won’t always be affordable.
Is Walmart your largest customer? They won’t always ignore your margins.
Does the majority of your revenue come from ad sales that are dependent on traffic driven to you via organic search? Google will eventually change the way things work.
Does your value proposition depend on your salesforce.com integration? salesforce.com will someday buy your biggest competitor.
If we build and sell something, then we’re dependent on others for our success. That’s a great thing, as it strengthens the ties that bind our community together. But it can also be a dangerous thing if your success is single-threaded.
Personally, I like for my company to depend on a great many people, tactics, and businesses – but not on any single person, tactic, or business. I like the idea that we can learn from the loss of a customer who represents 0.03% of our revenue, and apply those lessons in a way that improves our service for all the other customers who represent 99.97% of our revenue.
The organization that depends on many small relationships will suffer small injuries regularly, and their injuries will strengthen them. The organization that depends on very few large relationships will suffer large injuries very infrequently, and their injuries will damage them.