In any business there’s a series of rules to follow. Most of them aren’t explicitly stated, but follow a type of common (business) sense. A general modus operandi (MO) develops. Both as a founder or an employee it’s easiest to stick to this MO. It feels sensible and like it saves time. But by doing so, you are recreating the same issues that these structures have created for all companies before you. To make it […]
There are two different types of strategy tax in a company. One for product strategy and one for corporate strategy. The former is what people usually refer to, and it often comes up when describing Microsoft and its strategy in the 90s. Blogging legend Dave Winer wrote a good explanation of this in 2001, for instance. In more modern times, Ben Thompson from Stratechery has defined it like this: A strategy tax is anything that […]
Scene: the board room. You’re presenting a new idea for investment. Your CFO is concerned. How much will it cost? How many FTEs will you need? It’s predictable, but not unreasonable. What is unreasonable is the asymmetry of continuing with business as usual. Doing the same thing as last year requires no preparation and little effort. But it represents the largest hidden cost of all big companies. The cost of status quoThis hidden cost is […]
