Archive for the ‘strategy’ Category

Interview with Max Levchin, CEO of Slide

Tuesday, December 18th, 2007

Max Levchin is someone I admire. If the name doesn’t ring a bell, he is the co-founder of Paypal that was sold to eBay for $1.5Bil.

Here are some of my key takeaways:

  1. As an entrepreneur, you have to learn to define yourself as someone who runs a company. You know you’re really good at that if you dont think that much about what kind of company you are running (meaning, it’s second nature to you).
  2. After you launch something, watch the world respond to it. If they say it is no good, you must evolve.
  3. You don’t wait for the market to tell you that your product or idea sucks. You keep your ears close to the ground. Sometimes you must completely your strategy. Smell the opportunity.
  4. On reaching out to end-users: Being active in forums and the company blog is good, but that doesn’t scale. Satisfy your early adopter (your core base), then shift to metrics. Use metrics to drive all features. It’s important to measure, interpret the information, and feed that directly into product strategy. 10% of headcount at Slide is dedicated to measuring.
  5. Greatest fallacy: build products for yourself. Abstract yourself out of the equation. Startup founders are smarter and crazier than the average person, you can’t use yourself as the “normal” person this product is built for. Find out who you are building it for. It’s great if you are a part of your audience, but you may not necessarily be. If you are not, you must understand the audience really well.
  6. At Paypal, everyone on board understood the vision, and genuinely focused on customer needs. Build value, create something people want.

I found this cool interview of him, by iinnovate. Read more about Max on the New York Times.

Value creation by opportunity cost

Saturday, August 25th, 2007

I was thinking about Tivo earlier. While it’s no rocket science product, it certain has become a common standard in households in the US now. In fact, Tivo has achieved the status of Google in the sense that people now use it as a verb. How many times have you heard, “I tivo’d that show”, “I will tivo that movie tonight”, “wanna come over, I have that game tivo’d”?

Anyway, I just thought it was interesting to note that one of the ways Tivo creates value for its users, is by reducing/eliminating the opportunity cost for its users. Opportunity cost or economic cost, is the cost of something in terms of an opportunity forgone (and the benefits which could be received from that opportunity), or the most valuable forgone alternative (or highest-valued option forgone), i.e. the second best alternative.

For instance, if there were two shows on two different channels that will show at the exact same time. If you only had one TV, you must pick only 1 show to watch. Even if you had 2 TV’s, you can’t really watch both at the same time. So in the pre-Tivo and DVR days, you would pick the show you liked better. The opportunity cost for viewers would be that other show that they unfortunately could not watch. Tivo fixed that. And good for them, because this is a pain that customers were willing to pay in order to get rid of. Just as a contrast, there are plenty of problems that aren’t painful enough such that customers aren’t willing to pay for a solution.

I like problem solving, and am on the lookout for interesting ways to create value. This is one way, so from now on, I will keep my eyes peeled for opportunity cost problems that can be solved.

Data suggests: More swings at the bat == higher success rate

Monday, August 20th, 2007

Wow, I just read this great post by Marc Andreessen — finding empiric data (true to Marissa Mayer‘s what-does-the-data-suggest style) to answer the flame-brewing question that has been circling: “Are older or younger people better at entrepreneurship?” I do no justice by just skimming here, so please read the entire post for the full effect.

For the impatient: In summary, the valuable lesson learned here from Dr. Simonton‘s research is that:

  1. Generally, productivity — output — rises rapidly from the start of a career to a peak and then declines gradually until retirement.
  2. This peak in productivity varies by field, from the late 20s to the early 50s, for reasons that are field-specific.
  3. Precocity, longevity, and output rate are linked. “Those who are precocious also tend to display longevity, and both precocity and longevity are positively associated with high output rates per age unit.” High producers produce highly, systematically, over time.
  4. The odds of a hit versus a miss do not increase over time. The periods of one’s career with the most hits will also have the most misses. So maximizing quantity — taking more swings at the bat — is much higher payoff than trying to improve one’s batting average.
  5. Intelligence, at least as measured by metrics such as IQ, is largely irrelevant.

Winds of Change

Sunday, August 19th, 2007


* Image courtesy of GIS and AOL’s CDN

Update: Welcome Carnival of Career Intensity readers! Thanks to Dave for including this post in the Labor Day carnival.

I’m adding a new category to my blog, titled “Winds of Change”. I could have just called it “Change”, but that’s no fun ;) (in case you want to know where I got it from, it’s a name of a song I like). Change is inevitable, and I’ve learned a great deal (and still have much to learn), about embracing change instead of fighting to defend the mediocre status quo. Carly Fiorina gave a great talk about change at Stanford 3 months ago, and why sometimes leaders get “carried out on their shields” because change is difficult! I highly recommend listening to her talk, if you don’t have time, make time, I promise you will not regret it :)

So without further ado, I wanted to share a good article I read about change.

Begetting Change: Same Choices, Same Results

Repeated bouts of adversity are an unavoidable aspect of human existence. We battle against our inner struggles or outer world forces, and in many cases, we emerge on the opposite side of struggle stronger and better equipped to cope with the challenges yet to come. However, we can occasionally encounter trials that seem utterly hopeless. We strike at them with all of our creativity and perseverance, hoping desperately to bring about change, only to meet with the same results as always. Our first instinct in such situations is often to push harder against the seemingly immovable obstruction before us, assuming that this time we will be met with a different outcome. But staying power and stamina net us little when the same choices consistently garner the same results. A change in perspective, behavior, or response can do so much more to help us move past points where no amount of effort seems sufficient to overcome the difficulties before us.

Whether our intention is to change ourselves or some element of the world around us, we cannot simply wish for transformation or hope that our lives will be altered through circumstance. If our patterns of thought and behavior remain unchanged, our lives will continue to unfold much as they have previously. Patterns in which fruitless efforts prevail can be overcome with self examination and courage. It is our bravery that allows us to question the choices we have made thus far and to channel our effort into innovation. Asking questions and making small adjustments to your thought processes and behaviors will help you discover what works, so you can leave that which does not work behind you. To break free from those unconscious patterns that have long held sway over your actions and reactions, you will likely have to challenge your assumptions on a most basic level. You must accept once and for all that your beliefs with regard to cause and effect may no longer be in accordance with your needs.

Stagnation is often a sign that great changes are on the horizon. Courting the change you wish to see in yourself and in the world around you is a matter of acknowledging that only change begets change. The results you so ardently want to realize are well within the realm of possibility, and you need only step away from the well-worn circular path to explore the untried paths that lie beyond it.

Great lesson here. Sometimes, brute-force techniques aren’t the most efficient way to solve a problem. It’s always best to remain open to other possible problem solving methods. Acknowledging you have made a mistake (or could have done something better) is the first step, before making incremental adjustments to your course. When you feel growth stalling, then you know you have to actively seek out change, for the same choice will return you the same results. Take charge of your destiny.

What I’ve found true for myself, if you don’t take charge of your life, others will run your life for you. It’s your own responsibility to ensure that you end up where you want to be. If you don’t like where you end up, you only have yourself to blame.

See the world, but never forget the drops of oil on the spoon

Sunday, July 29th, 2007

“The secret of happiness is to see all the marvels of the world, and never to forget the drops of oil on the spoon”.

Yeah, me too. Never forget the what?

I got this quote from Wikipedia’s entry on the book titled “The Alchemist”. First of all, I’m pretty much a straight up technology nerd/geek/whatever-they-call-it-these-days. I don’t pretend to be a domain expert on chemistry or biology. Sure, I took some classes in college, but it never really interested me as much as all things technology did, or even math. Matter of fact, I hated math when I was a kid. My parents and high school math teachers will testify how much I failed at the subject, hated the subject, and faked liking the subject (I sort of faked liking school too, but that’s a different story altogether to tell another time). I’ll bet that my teachers then will be shocked to hear today, that not only did I get a minor in math, published an original research paper in math, but actually like and appreciate math.

That being said, during my geeky nerd years doing my B.S. (ha-ha) in C.S., I pretty much thought of chemistry and biology as an “overhead cost” to getting my degree. It just wasn’t that much related to tech or math (sure I understand that CPU’s need electrons for the transistors and logic gates, but outside of that .. ?), and it was pretty much required if I wanted to graduate, so I knew that this isn’t something I could walk around and forget. When I graduated, a good friend of mine who graduated with me gave me a graduation/parting gift. It was a book titled “The Alchemist”. Now that you know my love-hate relationship with all-things chemistry at that time, I naturally thought to myself, “uhh .. what on earth were you thinking?” Nevertheless, I accepted the gift with a smile, thanked her for it, and well .. chucked it a side.

Just to put things in perspective, back then, I only read stuff like Slashdot, Onlamp and O’Reilly. Back then, there was no Digg or Reddit, but if there was, I would be reading that. I hung on on mailing lists, like for FreeBSD. I wouldn’t even touch business. Today, I read lots of business. So back then, if it wasn’t tech, I pretty much didn’t care. Ok, I read a little bit of national news. A little international news too, but 95% was tech, tech, and tech.

Many times when ridding my garage of bloat, I thought of ridding myself of a book that I knew I would never read, but it reminded me of the moments I had with Amira in the computer science lab, hacking away at programming assignments, logic problems, the late nights studying in the library (with coffee we quietly snuck past the pesky librarians), cramming for a test and stressing out over math and physics homework assignments. To date, I still have the book with me. Recently, I read the book mentioned somewhere and decided that well, I will at least devote enough time to read the summary of the book — which is when I looked up it’s Wikipedia entry and got that quote.

So anyway, following this trail led me to another interesting discovery. (Be warned, this is going to be a long blog post)

I googled for that exact quote and the first result was this blog post, by someone from Kerala, India. Here’s the story behind that quote, it’s worth the read I promise.

A certain shopkeeper sent his son to learn about the secret of happiness from the wisest man in the world. The lad wandered through the desert for 40 days, and finally came upon a beautiful castle, high atop a mountain. It was there that the wise man lived.

Rather than finding a saintly man, though, our hero, on entering the main room of the castle, saw a hive of activity: tradesmen came and went, people were conversing in the corners, a small orchestra was playing soft music, and there was a table covered with platters of the most delicious food in that part of the world. The wise man conversed with everyone, and the boy had to wait for two hours before it was his turn to be given the man’s attention.

The wise man listened attentively to the boy’s explanation of why he had come, but told him that he didn’t have time just then to explain the secret of happiness. He suggested that the boy look around the palace and return in two hours.

“Meanwhile, I want to ask you to do something”, said the wise man, handing the boy a teaspoon that held two drops of oil. “As you wander around, carry this spoon with you without allowing the oil to spill”.

The boy began climbing and descending the many stairways of the palace, keeping his eyes fixed on the spoon. After two hours, he returned to the room where the wise man was.

“Well”, asked the wise man, “Did you see the Persian tapestries that are hanging in my dining hall? Did you see the garden that it took the master gardener ten years to create? Did you notice the beautiful parchments in my library?”

The boy was embarrassed, and confessed that he had observed nothing. His only concern had been not to spill the oil that the wise man had entrusted to him.

“Then go back and observe the marvels of my world”, said the wise man. “You cannot trust a man if you don’t know his house”.

Relieved, the boy picked up the spoon and returned to his exploration of the palace, this time observing all of the works of art on the ceilings and the walls. He saw the gardens, the mountains all around him, the beauty of the flowers, and the taste with which everything had been selected. Upon returning to the wise man, he related in detail everything he had seen.

“But where are the drops of oil I entrusted to you?” asked the wise man. Looking down at the spoon he held, the boy saw that the oil was gone.

“Well, there is only one piece of advice I can give you”, said the wisest of wise men. “The secret of happiness is to see all the marvels of the world and never to forget the drops of oil on the spoon”.

This makes sense to me. I know and realize that I sometimes am like that boy. I focus all my energy on the day-to-day important stuff, but I miss the long term important stuff. This is a great example of the phrase “penny wise, pound foolish”. I sweat the stuff that is urgently needed within the next 24 hours and strive the hardest to hit my mark, which I do — but I miss my mark in meeting my long term, broader 5 year goal. I attribute this to not aligning my daily goals to my 5 year goals — something I MUST remedy soon.

A perfect example of this is my not taking a vacation off ever since I began working right after college. Today, I’m what you corporate folks diagnose as “bleeding vacation time”, that is, my vacation time accrues, but is capped off at a certain amount. Short term: there’s _always_ something important and/or urgent at work, such that I just cannot afford to not go to work. Long term: I lose my sanity and burn out from working so hard. I’m only human after all.

Before the end of this year, I will go for a vacation. I have nothing solid planned, but I know I must take a vacation if I am to become a better employee. It’s really better for my company anyway. I never thought I’d say that, but I am now. By the end of this year, if I still haven’t taken a vacation, I will be truly SORRY and DISAPPOINTED with myself. My ex-girlfriend actually predicted that I’m the “bleeding vacation time” type of person. And she predicted that when I was still in college. Multiple part time jobs while getting a degree, why would she ever say something like that? :/ I remember thinking to myself, “that’s because you Europeans take it too damn easy”. Which in my defense, is true. American workers put in more hours than their European counterparts, last I remember from reading a world labor stats report. Thus, I shrugged off her comments as irrelevant and inherently biased, based upon unreasonable metrics.

My fear is that I’m driving on the road in high gear, in pitch black darkness with my headlights shining no farther than 30 feet. I can easily avoid small objects lying on the road and remain on the path, but I may not see the brick wall standing 31 feet in front of me. Or stop in time before it’s too late.

I have since lost touch with Amira since she moved back to Bosnia and Herzegovina after graduation (little over 3 years now at time of writing). Nevertheless, in the age of the wonderful internets, with search engines, e-mail, instant messengers, social-networks, and the good old telephone, there really is no excuse for not staying in touch. I hope she will drop me an e-mail if she reads this. I know (and she knows), and now you know, what a heartless prick I can be sometimes (see “what the hell were you thinking?” above). I’m sorry :(

The Alchemist: A Fable About Following Your Dream

The Alchemist: A Fable About Following Your Dream