Saturday, November 17, 2018

Blitz-scaling


So, I'm just catching up with the buzz about blitz-scaling, the business model that says:
Get to scale fast! Actually, get to even larger scale even faster.
Blitz your way there!
Only the fastest to scale wins; there's hardly a spot for number two
One might ask: What's the debt and debris accumulated in blitzing scale?

Reid Hoffman has an answer in his book, titled no less than: "Blitzscaling: The lightning-fast way to massively valuable companies"
  • Conventional process-oriented decision making supported by "facts" and analysis of risk, discounted cash flow and the like, are out
  • What's in is speed, decisions based on instinct and partial data, and a willingness to pay the downside if risks don't work out
Ok, almost anyone could imagine that deregulating is going to allow speed with some broken glass along the way.
In the past Reid argues, business put a high value on not breaking the glass.
Efficient and predictable processes with predictable outcomes was king.
  • Remember the "Theory of Constraints" developed in the early '80s: Efficiency in resource utilization was the answer to better business
  • Remember: the customer is always right?
  • Remember: product quality counts very high --- 1950 quality ideas and 1990 error management (Defined process control; Quality is free, Six-sigma etc)
According to Reid: all good stuff, but too slow!
  • Speed is almost axiomatically opposite efficiency. Many resources will be wasted when you go as fast as you can
  • Don't let the customer get in the way; customers are notoriously cautious adopters
  • Quality can come later; get a product out there and set the frame 
If you read my post on the evolution of Agile, you'll recognize the connectivity of blitz-to-scale with the evolved principles




Buy them at any online book retailer!

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