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by
Gene Kim
Read between
July 29 - August 11, 2024
“In order to speak clearly, you need to be able to think clearly. And to think clearly, you usually need to be able to write it clearly.”
Crossing the Chasm,
“There, Sensei Dr. Steven Spear observed that for each day you can get to market faster, you can often capture upwards of millions of dollars of additional revenue. If you’re first to market, you will capture fifty percent of the revenue that the entire product category will ever yield. Second place will capture twenty-five percent, and third place will get fifteen percent. For any later entrants, it will surely have been a complete waste of time and money.
There is an instinct to maximize profitability and take cash out of the business instead of reinvesting it. This is the ‘manage to value’ thesis and is the opposite of ‘manage to growth.’ If you want growth, Steve, you must protect Horizons 2 and 3, and any learnings generated there must be spread throughout the company.”
“Not properly managing Context is what Sensei Moore called the killing ground of great companies. Companies who become too burdened by Context are unable to properly invest in Core. There is a strategy for transforming a company, but it also takes ruthless focus and tenacity.”
entirely?” Bill bristles, turning red. Up until now, he always appeared remarkably stoic and reserved, but apparently Erik had touched a nerve. “You’re talking about outsourcing? After all we’ve been through, Erik, haven’t we already agreed that outsourcing IT has caused many of the problems we’re currently cleaning up?” “Hardly!” Erik scoffs. “You’ve all proven that you can jeopardize the First, Second, and Third Ideals plenty without outsourcing. Instead, think of the Fifth Ideal, of being truly customer-centric instead of being silo-centric. As Sensei Moore asks, of the applications and
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Fifth Ideal
and identify areas of Context that you can unload, freeing yourself from decades of technical debt, things that have been shackling you for years or maybe even decades. Imagine what you can get done without all those things dragging you down. Even though