tag:blogger.com,1999:blog-7533727264507128560.post1564906318829349830..comments2024-03-28T10:49:53.597-07:00Comments on Lessons Learned: Cash is not kingErichttp://www.blogger.com/profile/12249063135381216090noreply@blogger.comBlogger9125tag:blogger.com,1999:blog-7533727264507128560.post-63530086445008412532009-04-02T16:14:00.000-07:002009-04-02T16:14:00.000-07:00oy, my nerd colors are showing...My first thought ...oy, my nerd colors are showing...<BR/><BR/>My first thought was: "Why did he comment out the 2nd formula?"<BR/><BR/># iterations = runway / speed of each iterationJosh Peckhttp://joshpeck.orgnoreply@blogger.comtag:blogger.com,1999:blog-7533727264507128560.post-19478982886173494212009-04-01T05:53:00.000-07:002009-04-01T05:53:00.000-07:00Great post and awfully hard to do. I am thinking o...Great post and awfully hard to do. I am thinking of the Toyota system and adjusting the "big cogs" in the wheel and its relevance to enterprise software and services (i.e. what is/are the big changes that would signal that this is another iteration?).Anonymoushttps://www.blogger.com/profile/03194645813782269802noreply@blogger.comtag:blogger.com,1999:blog-7533727264507128560.post-7535090386445386162009-03-31T19:51:00.000-07:002009-03-31T19:51:00.000-07:00eric: if you haven't already read it, you may enjo...eric: if you haven't already read it, you may enjoy Throughput Accounting by Thomas Corbett. it's a bit of a dry read, but it serves as an excellent formalization of similar ideas through the lens accounting principles and the Theory of Constraints.Owen Rogershttp://exortech.com/blognoreply@blogger.comtag:blogger.com,1999:blog-7533727264507128560.post-88996698198574993352009-03-31T15:30:00.000-07:002009-03-31T15:30:00.000-07:00But are you trying to maximize or minimize the num...But are you trying to maximize or minimize the number of major iterations? Too few represents stagnation. Too many represents frenetic activity. Most startups I've seen suffer from the latter, rather than the former. The pressure to innovate and try new things often overcomes the sober desire to execute to plan.knowisthttp://www.knowist.comnoreply@blogger.comtag:blogger.com,1999:blog-7533727264507128560.post-12387265239710521302009-03-30T21:30:00.000-07:002009-03-30T21:30:00.000-07:00thanks for clarification & understood :)thanks for clarification & understood :)dave mcclurehttp://500hats.typepad.comnoreply@blogger.comtag:blogger.com,1999:blog-7533727264507128560.post-61151635074952550532009-03-30T09:09:00.000-07:002009-03-30T09:09:00.000-07:00@Dave - completely agree. My point with PayPal is ...@Dave - completely agree. My point with PayPal is not that they were a lean startup (I wasn't there; I do appreciate your account) but that they are an example of needing to do those big mountain-hopping iterations.<BR/><BR/>Sometimes when people hear me talk about "built to learn" and continuous iteration, they think I mean linear optimization. Far from it. Linear optimization is a tactic, incremental improvements are a tactic, even mountain-hopping is a tactic. Lean startup is a strategy for deciding when, how, and what to do on the next iteration as fast as possible.<BR/><BR/>Thanks for the thoughtful comment.Erichttps://www.blogger.com/profile/12249063135381216090noreply@blogger.comtag:blogger.com,1999:blog-7533727264507128560.post-9175992656352479722009-03-30T08:24:00.000-07:002009-03-30T08:24:00.000-07:00great observation & summary. however, i think...great observation & summary. however, i think it's useful to contrast MAJOR iterations which may consist of non-intuitive leaps in product or marketing strategy from MINOR iterations which focus primarily on optimization of existing conceptual models.<BR/><BR/>PayPal was fortunate to make several BIG leaps & changes in their models, one of which eventually resulted in runaway success (email & web e-commerce payments, primarily on the eBay marketplace). however contrary to the lean startup thesis you propose (which i tend to agree with a lot), i don't know that this success came from a philosophy of incremental & consistent iteration, but perhaps more of a random happening upon this model (combined with a lot of very smart people working extremely hard, and who also built very successful fraud models).<BR/><BR/>in other words: i think your lesson is correct, but not sure the primary example you cite is necessarily a great example of the lesson.Dave McClurehttp://500hats.typepad.comnoreply@blogger.comtag:blogger.com,1999:blog-7533727264507128560.post-12776200398274245012009-03-30T00:35:00.000-07:002009-03-30T00:35:00.000-07:00Thomas J. Watson Sr. was famously quoted by Charle...Thomas J. Watson Sr. was famously quoted by Charles Westrill as saying "Would you like the formula for success? Double your rate of failure." Until you did the math in this post I hadn't connected the dots between runway and rate of experimentation. <BR/><BR/>I think it also applies to competitive situation where you have positive cashflow: you have to learn faster than your competitor(s) and that means shorter focused experimentationSean Murphyhttp://www.skmurphy.com/noreply@blogger.comtag:blogger.com,1999:blog-7533727264507128560.post-53535130430959580882009-03-29T23:48:00.000-07:002009-03-29T23:48:00.000-07:00This comment has been removed by a blog administrator.Back office serviceshttp://www.saibposervices.com/Back_office_services.aspxnoreply@blogger.com