Two new articles(both reviews on books) caught my attention in K@W this week. One a book about the myth of Self-Helpish Books and the other on Cash-Curve. Loved the tone of each of them:
Halo effect is an effort at debunking the myth of having the guidelines for a great performance/manager. Instead it simply focuses on “Why is it so hard to understand high performance?”. It tackles many delusions:
- The delusion of correlation and causality
- The delusion of single explanations
- The delusion of rigorous research
Havent we heard all this before. The repeated (failed) attempts of GUT. Or trying to arrive at a one size fits all solution. Or the one simple mantra that is the secret of success of a company. The review of the book looks compelling – have to get a reading of the book..
- Good strategies involve risk and no strategy is foolproof.
- Execution also is uncertain. What works well for one company may not be effective for another company.
- Chance plays a greater role in success than managers may want to admit.
- Bad outcomes don’t always mean that managers made mistakes. Likewise, favorable outcomes don’t necessarily mean that the managers made brilliant decisions.
- Finally, Rosenzweig says that “when the die is cast, the best managers act as if chance is irrelevant. Persistence and tenacity are everything.”
Sort of reinforces my thought, market validates all. Forget the media and get back to work.
The cash curve is based on four “S factors”: Startup costs, or the pre-launch investment; Speed, or the time it takes to get the product to market; Scale, or the time it takes for the product to build a critical volume of customers; and Support costs, or the investment that is needed to keep a new product or service up and running after it has been launched. The cash curve plots cash flow over time as the product goes through successive phases of idea generation, commercialization and realization.
Amazing clarity there on the product. Of course the Apple takes the cake here. But just be careful its not the Halo Effect showing its effect