ClearPurpose

The Six S framework is another tool introduced by Tom Eisenmann in his book Why Startups Fail. He uses this framework to identify the most likely reasons that later-stage startups might fail. My perspectives differ slightly from Eisenmann. I see three of the six S’s (Speed, Scope, and Series X) representing the three dimensions that define has a VC-backed startup might scale. I see the other three (Shared Values, Staff, and Structure) representing the level of internal maturity of the business.

As Eisenmann points out in his book, the different dimensions of scaling all have benefits, but can also introduce significant (even fatal) challenges for startups. I believe that a business that has well established Shared Values, a well defined Structure, and the right Staff for the company’s current level of development, is well positioned to manage the challenges of rapidly scaling.

In practical use, I see the framework serving almost like a “pre-flight” checklist, regularly examined by leadership. Many industries have adopted safety checklists to avoid catastrophic disasters. I’m glad that entrepreneurs now have their own framework for doing the same.

Read the full article here.

In Why Startups Fail, Tom Eisenmann introduces the Diamond-and-Square (DaS) framework. Like the Business Model Canvas (BMC), the DaS represents the value proposition, the marketing activities that drive customer acquisition and retention, and the technology and operations (resources and activities) that all translate into the revenues and costs that feed a profit formula. 

Unlike the point-in-time perspective of the BMC, the DaS reflects the necessity for the startup to gain the resources necessary and apply those resources successfully to achieve a sustainable profit formula. The DaS and the BMC are complementary. Entrepreneurs should be thankful to have the Diamond-and-Square framework to add to their toolbox in building and scaling a successful startup.

Read the full article here.

For today’s podcast episode, I talk to Tolu Oridota, co-founder and chief technologist of Koalie. Tolu recently took a major step in his career, leaving T-Mobile to join Bryght Labs, and his experience with his side-gig, Koalie, played a key role in that move. Tune in to episode 9 to hear Tolu describe the major pivot that Koalie recently made and the lessons he’s learned through the process.

Listen here.

Recently I virtually sat down with Tom McNamara, the founder and CEO of hopr and asked him to tell the company’s story. As he described it:

“Hopr got its start out of a painful personal history. I’ve been working in technology for most of my career… but I learned through about five data breaches that my private information had been stolen… and I thought, this is crazy. … Why can’t these big, well-funded companies with top security talent stop hackers from around the world from breaking in and stealing things that aren’t theirs?”

Click here to give it a listen!

In my opinion, Monster is a great description of the dangers posed by the technologies of the Connected Intelligence revolution. While fun and engaging at times, and perhaps a bit too alarmist at others, my biggest issue with the book is that it promises a solution to those dangers, but fails to deliver a credible path forward. Still a worthwhile read if you manage your expectations appropriately.

Read the full review here.

In The Strategist, author Cynthia Montgomery introduced the Strategy Wheel as a framework that visualizes and records how a system of value creation supports an organization’s purpose. While I prefer using the Purpose Pyramid and Strategy Map for formulating strategic plans, the Strategy Wheel presents a holistic view of the business in one picture showing how all the parts of the business are strategically aligned. With a few minor tweaks, I think this tool can be a great way for a business leader to “keep their eye” on all aspects of strategy execution.Strategy

Read the full article in which introduce the Strategy Wheel and the minor tweaks I’d add as well as extend an example I’ve used before to demonstrate how a leadership team could use the framework for regular strategic reviews.

Today, AT&T announced that they are merging their WarnerMedia business into Discovery in a deal that values AT&T’s contribution at $43B. The company had to fight hard against regulatory concerns in order to complete the Time Warner acquisition just 3 years ago. At the time they paid $85B for the company.

AT&T seems to be returning to the strategy they articulated in 2015, just before they started pursuing major transactions not aligned with that strategy. Let’s see if they can demonstrate the discipline this time to stay focused on what they have always been great at doing.

Click here to read the full article.

I recently had the opportunity to interview Charley Donaldson, Co-founder and CEO of CaringBand about their encouragement platform. I’ve published that interview on the ClearPurpose podcast. Click here to listen.

Ash Fontana is a managing director of Zetta Venture Partners, an investment fund focused on AI. In The AI-First Company he draws upon the lessons he’s learned through the companies he’s invested in and worked with to share a very broad array of observations about how companies should think about, leverage, and manage data and artificial intelligence. He introduces a new concept, data learning effects, as the driving value creator in what I call the Connected Intelligence age.

In the book’s conclusion, Fontana describes the contents of The AI-First Company as “fresh data” that leaders can “process” and combine with other inputs as they iteratively create reinforcing learning loops that enable them to create their own competitive advantage. As such, the broad array of information in the book shouldn’t be viewed as perfect or a step-by-step roadmap for building a winning AI-led strategy, but rather one input among others that can help inform your strategy, if appropriately filtered and evaluated.

Click here to read the full review.

Cynthia Montgomery taught the strategy unit of Harvard’s Entrepreneur, Owner, President (EOP) program for five years. The Strategist summarizes the lessons she taught, and the lessons she learned, in this program. Her starting thesis is that leaders need to be strategists and she then walks through the fundamental components of what it takes to lead your organization strategically. Throughout, she uses many relevant and engaging stories to prove her points and to provide examples for how to be strategic.

Read the full review here.