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Posts tagged “startups”

What it takes to realize your ambitions

Jeff J. Lin looked at the life of director Ang Lee and pulled out some insights on what it takes to be successful. This part from Ang Lee and the uncertainty of success talks about the long periods of non-success that often occur:

If you’re an aspiring author, director, musician, startup founder, these long stretches of nothing are a huge reason why it’s important to pick something personally meaningful, something that you actually love to do. When external rewards and validation are nonexistent; when you suffer through bouts of jealousy, wondering “How come so-and-so got signed/is successful/got a deal/etc?”; when every new development seems like a kick in the stomach, the love of what you are doing gives you something to hang onto.

Much is made of genius and talent, but the foundation of any life where you get to realize your ambitions is simply being able to out-last everyone through the tough, crappy times — whether through sheer determination, a strong support network, or simply a lack of options.

Related, Paul Tough’s thesis on how children succeed:

Noncognitive skills, like persistence, self-control, curiosity, conscientiousness, grit and self-confidence, are more crucial than sheer brainpower to achieving success.

Choose work based on impact, not profit

Jason Cavnar wrote a great piece for VentureBeat called Why developers should start choosing conscience over profit. He urges us to be Makers, not Takers:

Makers choose their work based on impact and happiness. They recognize the truths in the work of people like Daniel Pink and Simon Sinek — that income does not generate happiness or enjoyment, nor alleviate sadness or stress. They concern themselves with doing work that is important. With thinking about what moves society forward. With jobs and startups and weekend hacking and open-source contributions to things that have a real-world impact. They introduce and push fundamentally new technologies.

It reminds me of Matt Gemmell’s Makers and Takers:

People who make things, or Makers, contribute something to the universe. Makers are people like writers, musicians, artists, architects, software engineers, carpenters, and the chap at the coffee shop who makes your morning latte. He has a skill, and he applies it to create something that makes your day a little bit better. […]

When I’m choosing who to spend time with, or seek inspiration from, or learn from, or adopt as a role model, I’m exclusively looking at Makers. The fire and water, rather than the mere pipework. The lightning, not the rod. Surround yourself with Makers.

And one more, just for good measure. Here’s Mike Monteiro in Design Is a Job:

I urge each and every one of you to seek out projects that leave the world a better place than you found it. We used to design ways to get to the moon; now we design ways to never have to get out of bed. You have the power to change that.

So there you go — some nice midweek inspiration.

Startups, failure, and focusing on customer problems

Peter Matthaei wrote down some thoughts on failure, startups, and product development in ALL THE USE CASES. He makes some good points, like this one:

Every great company started by being great at solving just a single problem. Quite often, a very humble one. But they solved that one problem incredibly well, picked up momentum, and with large doses of relentless ambition, good timing, vision and luck kept on going.

Dropbox is, of course, the poster child for this line of thinking. One of my favorite Quora answers is still Michael Wolfe’s response to Why is Dropbox more popular than other programs with similar functionality?:

“But,” you may ask, “so much more you could do! What about task management, calendaring, customized dashboards, virtual white boarding. More than just folders and files!”

No, shut up. People don’t use that crap. They just want a folder. A folder that syncs.

I would add that I think the problem with most startups is not necessarily that they’re trying to solve too many problems; it’s that they’re trying to provide solutions to problems that don’t exist. I love this quote from Pragmatic Marketing in their post Who Needs Product Management?:

It is vastly easier to identify market problems and solve them with technology than it is to find buyers for your existing technology.

My thesis continues to be that the single biggest cause of startup failure is focusing on finding buyers for cool technology, as opposed to identifying (and fully understanding) market problems first.

Design as path-dependent process

Speaking of Ryan Singer, I recently re-read his answer on the Quora startup thread Should I focus on a good user experience, or push something out quickly? He makes a really good argument for investing in design very early in the product development process:

Design is a path-dependent process. That means the early moves constrain the later moves. On the very first iteration the design possibilities are wide open. The designer defines some screens and workflows and then the programmer builds those. On the next iteration, it’s not wide open anymore. The new design has to fit into the existing design, and the new code needs to fit into the existing code. Old code can be changed, but you don’t want to scrap everything. There is a pressure to keep moving with what is already there.

Our early design decisions are like bets whose outcome we will have to live with iteration after iteration. Since that’s the case, there is a strong incentive to be sure about our early bets. In other words, we want to reduce uncertainty on the first iterations.

This is why variation, not just iteration, is so important during the early phases of a product.

Blame the business model for the Instagram/Twitter spat

Dan Lyons gets to the heart of the Instagram/Twitter spat in Instagram Turns Evil, And It’s All Our Fault:

Companies like Twitter and Instagram (and Facebook, which owns Instagram) are set up in such a way that their interests have never been aligned with the interest of their users, but in fact are in complete opposition to them.

The only way these companies can succeed financially is by tricking members and forcing them into walled gardens. Think of it this way - there’s a reason that they don’t hold a circus out in the open, and instead put it under a tent - and it’s not to keep you dry in case of rain.

Dan is saying this is all our fault for letting these companies box us in. But really — what’s the alternative? Where’s the paid Instagram clone that has the same network effect as the free one does? This is not an easy problem to solve.

Related post from the Elezea archive: Everything for free, always: how Facebook ads show us the sad state of the Internet.

Key startup questions: is this viable, feasible, and desirable?

Des Traynor shares some insights on how he works with startups in Asking Questions beats Giving Advice:

The first question I ask (though sometimes I just ask myself) is an easy one: is this viable, feasible, and desirable? The answer has to be yes on all three counts—no two are enough. In fact, pick any two, and you’ll think of a start up that failed because they missed the third.

This approach shares parallels to the “problem frame diagram” approach I discuss in Usable yet Useless: Why Every Business Needs Product Discovery. The goal with that approach is to identify the user needs and business goals of the product, as well as the core competencies of the organisation.

Des goes on to describe some of the key things you have to think about before launching a product. If you do Product Management on the web, his post is highly recommended.

What matters is products, not names

Micah Baldwin in Silent But Deadly:

Yet, there is something amazing, maybe even beautiful in execution. In silently creating something of immense value without the need to be everywhere to be seen by everyone. That our worth as entrepreneurs is built through our products, not through our names.

It’s a great story and a great post.

(link via @PaulCartmel)

Startup growth is ok, career happiness is better

If you’re at a company where the next step up the ladder means managing people more than managing the quality of the design the company is producing, get the hell out of there. There’s way too much design to be done to be losing good people to idiotic corporate structures that take our best designers out of commission.

– Mike Monteiro, Design Is a Job

Those are some harsh words from Mike. But it’s a topic I’ve been thinking about quite a bit. I’ve now spent about an equal number of years at small companies as I have at big companies. And I’ve come up with a theory that I probably shouldn’t even write about yet, because I might be wrong. But in the spirit of thinking out loud, here goes — as long as you know I’m open to being convinced otherwise.

My theory is that as soon as a company grows to a size where the people who make the strategic decisions aren’t the same people who actively work on making the product, it becomes very hard for that company to continue to serve the needs of its customers. Not impossible, just much harder. We recently did some work with a startup where the founders are also the people who write all the code for their product. They were passionate, engaged, ego-less, and interested in only one thing: how to make their product better for customers.

But in bigger companies, what often happens is that once you enter the management career path, priorities start to change. You need to learn how to play the game so that you don’t become irrelevant. You need to watch your back. You need to figure out how HR works so that you can get to the next step on the ladder. Directors need to know how to become VPs. VPs need to know how to becomes Senior VPs. Senior VPs need to know if there is any growth left for them. And sooner or later, you spend so much time caught up in the politics of the organization that there is simply no room left to worry about customers.

I am not saying that all managers are like this — I have been in these situations myself, and I know how difficult it can be to stay sane, and I know many people who are managing the pressures extremely well. But it doesn’t help that we tend to measure business success by the size of a company, and personal success by the seniority of people’s roles within that company. In his much-praised post Startup = Growth, Paul Graham said the following:

Eventually a successful startup will grow into a big company.

Mark Suster responds to this particular idea in a very interesting post called Is Going for Rapid Growth Always Good? Aren’t Startups So Much More?:

Some entrepreneurs can make a dent in a smaller world. […] It’s ok to build a company that stays small, has a few million dollars in revenue and builds careers, bank accounts and enriches client experiences.

A poster child for this kind of startup is 37signals, whose CEO Jason Fried has repeatedly stated that they deliberately stay small. From an interview with Fast Company:

I’m a fan of growing slowly, carefully, methodically, of not getting big just for the sake of getting big. […] There’s a great quote by a guy named Ricardo Semler, author of the book Maverick. He said that only two things grow for the sake of growth: businesses and tumors. We have 35 employees at 37signals. We could have hundreds of employees if we wanted to — our revenues and profits support that — but I think we’d be worse off.

My point is that each of us needs to think carefully about the kind of career we want to have. If the title at a big company is what you’re after, that’s great, but make sure it’s because that’s what you want, not what the system makes you think you want.

But if you find that a company focus on growth is making it harder to make customers happy, or that you’re no longer able to do the things that you love so much that you decided to make a career out of it, it might be time to consider working at a company where the decision-makers and the doers are the same people. You might make less money, but you’ll also be happier.

The future of e-commerce is storytelling

Marcelo Somers wrote a good article arguing that to compete with the likes of Amazon, e-commerce companies need to focus on telling stories through the products they sell. From Disrupting Amazon: Rethinking eCommerce:

An eCommerce site should be about more than just selling stuff. It should embody a set of values that are distilled in how the product looks, how it feels, and what it contains. It should have an opinion - the story is how we go about telling it through our interface, how we merchandise, the photography, and the products on the site.

He also provides some examples of companies that do this well.

Related post from the Elezea archive: The welcome shift to context-based e-commerce.

iPhone 5, the local maximum, and an important lesson for startups

Last week I used a product development theory called the Kano Model to explain why it’s wrong to be disappointed with the iPhone 5. I wrote the article just before the launch event, and lo and behold, it didn’t take long for the Internet to start yawning:

Um, it’s a little bit longer. Really Apple? You spent months in court fighting Samsung and portraying yourself as the world’s only truly innovative company and this is the best you can do? A phone that looks like what would happen if phones were capable of inbreeding?

Today I’d like to explore the fallacy of this kind of disappointment further using a mathematical theory I alluded to in my previous article, Maxima and Minima:

In mathematics, the maximum and minimum of a function are the largest and smallest value that the function takes at a point either within a given neighborhood (local or relative extremum) or on the function domain in its entirety (global or absolute extremum)

More specifically, I want to discuss the idea of the local maximum within the context of product development, and how that relates to innovation. For the purposes of product development, I liken the mathematical concept of neighborhood to product. For example, the iPhone (as a product) will hit a local maximum when the current design cannot be improved any more. This isn’t necessarily the best product you can make in the entire industry, but it is the best iteration of the current product1.

Local Maximum

(Image source: 52weeksofux)

To explore this further, we also have to differentiate between the concepts of iteration and variation. In product development, variation is a way to explore a bunch of alternative product solutions. In contrast, iteration solidifies the product idea that gets chosen. To quote Jon Kolko: “Where an iteration moves an idea forward (or backwards), a variation moves an idea left or right.” Or, to put it into the language of maxima and minima, variation surveys the landscape to help companies choose the right neighborhood (product) to move into. Iteration then helps them to find the local maximum in their chosen neighborhood.

Now, let’s look at the iPhone. Because of the Samsung trial we know that Apple did a great deal of variation work before they chose their neighborhood. See, for example, this sketch of different possible designs from a slide show on AllThingsD:

iPhone prototype

(Image source: AllThingsD)

If you dig deeper into the slide show you’ll see many variations they considered before settling on the basic design for the original iPhone.

It’s not just the hardware though, of course. There’s also iOS. As far as I’m aware there aren’t any early sketches for iOS publicly available, but I’m willing to bet a lot of money that they didn’t just sketch one thing and then designed it that way. It’s pretty safe to assume that the variation process on iOS was every bit as rigorous as for the iPhone hardware.

Once they’ve done a bunch of variation work on the hardware and software for the iPhone, Apple chose their neighborhood and started iterating. There were some major improvement jumps along the way (like iOS2, and iPhone 4), but it’s all still in the same neighborhood.

So let’s get to the crux of the matter. From an engineering perspective, variation is expensive, iteration is cheap. Especially if a product is already out there. Apple is able to give away the iPhone 4 for free because they have been iterating on the hardware for so long that they can manufacture the phones very cheaply. If the iPhone 5 was a drastically different phone (I’m talking about a completely different neighborhood), everything would have started from zero.

From a business perspective, why would Apple choose to make a very expensive move to a different neighborhood, when they know that they haven’t hit the local maximum on the current phone yet? Apple is iterating because they understand this concept, and because they know that the only thing that matters is if customers like it. As John Gruber said:

The collective yawn from the tech press was louder this year; the enthusiasm from consumers is stronger.

What does it mean for startups?

There are some important lessons for startups in the story of the iPhone evolution.

First, spend as much time and money as you can afford on variation upfront, because if you move into the wrong neighborhood, it’s really hard to change that later on. Some companies have done it successfully, like when Path completely redesigned their product from the ground up. Other companies are finding it really hard to move, as evidenced by the almost universal disdain for the new Twitter app for iPad2. And the jury is still out on whether Microsoft’s very expensive foray into the tablet OS world will be a success or not.

Second, don’t move to a new neighborhood until you’re absolutely sure that you’ve hit the local maximum right where you live. I’ll say it again - iteration is cheaper than variation. Instead of trying to rethink your product every few months/years, rather spend time to understand how you can make the current variation better. Apple is proof that this strategy pays off.

I have a feeling that Apple isn’t going to move out of their phone neighborhood any time soon. They might send some family members to buy a new house in the TV neighborhood. But when it comes to phones, they’re still on to a good thing, and they’re smart enough not to be tempted by the fake grass on the other side of the “change everything!” fence.


  1. In Is the iPhone good enough?, Horace Dediu speculates on whether the iPhone 5 has hit the local maximum yet. It’s a must-read piece. 

  2. I’m not as negative about the app as most people, because I understand where it’s coming from. The Twitter design team are most likely operating under some very specific business constraints, and they are doing everything they can to provide a good experience within those constraints. It’s a business, after all.