Blitzscaling 09: Session Notes[Reid Hoffman and Allen Blue on Why and How They Scaled LinkedIn]

This is my seventh blog on the notes and my interpretations on the Blitzscaling sessions. In the fall of 2015, Reid Hoffman began taking session called Technology-Enabled Blitzscaling at Stanford University.Blitzscaling is what you do when you need to grow really, really quickly. It’s the science and art of rapidly building out a company to serve a large and usually global market, with the goal of becoming the first mover at scale. And its also about why organization culture is important for Blitzscaling Because when you’re growing an organization very fast, you have to make people accountable to each other on a horizontal or peer-to-peer basis, and not just vertically and top-down through the hierarchy.

Session 2 notes can be found here. Session 3 notes can be found here. Session 4 notes can be found here.Session 5 notes can be found here.Session 6 I haven’t covered. Session 7 notes can be found here. Session 8 notes can be found here

In session 9, Reid Hoffman and Allen Blue shared the insights on how they scaled Linkedin.Here are the session notes and my interpretations on the insights shared.

  1. The key thing about establishing an organization culture or creating a distinctive one to identify what kind of people will not fit into your culture.
  2. Most elite organization are able to establish this very early. For example:- Google was able to identify that folks from top degree colleges with highest CGPA will fit in the collegial culture which Larry and Sergey want to create. Now want works for Google will not work for your organization. You have to identify what kind of culture you want to create.
  3. Part of establishing a unique culture is to answer questions on
    1. How you will communicate internally and externally
    2. how you will develop your leaders
    3. how you do decision making in the company
  4. The entire Blitzscaling sessions are divided into 3 parts addressing 3 stages of start-up called as Family, then Tribe and the village
    1. Family: – It’s about identifying a non-obvious market opportunity where you have a unique insight or strength or approach to capture market share. And then building your initial team to build the initial offering to address that market.
    2. Tribe: – Execute and iteratively improve a plan which gets you to achieve a market share.
    3.  Village: – In this stage, you are now able to identify, plan and execute the core business that you will be able to scale up and take it globally. 
  5. The goal of the core business is to
    1. Create continued growth
    2. Generate growing revenue
    3. build competitive advantage
    4. Grow strategic assets for later opportunities.
  6. From time to time in company lifecycle, founder’s need to communicate the same language which people can follow while they are doing their day to day jobs.
  7. When your organization is growing from 15 to 50 to 500, as founder’s you will not be the part of each and every conversation in your company. But as founders, you have to make sure that those conversations are aligned with big picture/directions and priorities you have decided.
  8. Communicate about your (a) mission (b) vision (c) competitive advantage (d) strategic objectives (e) business model (f) operating priorities with your companies on the continues basis. But especially when you are moving from family to tribe to village
  9. All the above communications should be simple, clear & easily repeatable. If you will be able to crack this, you will be able to create an effective organization.
  10.  At the family stage and somewhat at initial stages of tribe stage, you hire generalist. But as you grow to become a full-fledged tribe or village, you have to hire specialist.
  11. A good generalist is someone who can come and pick up skills & things without founders doing many interventions.
  12. Specialist have good analytical skills and problem-solving skills with respect to specific area of business
  13. Tips on hiring and managing talent
    1. Fire fast low performers
    2. When hiring look for the long term probability of the guy who will be able to evolve as company goes from family to tribe to village.
    3. “Given a chance, will you hire a person again? ” – Answer this question if you have difficulty in firing your low performer or even co-founder.If answer is no, fire ASAP.  But always make sure to remain humble & human while you are parting away.
  14. Following is the screenshot of Linkedin product plan. During the family stage, you have to get just one thing right. But when you are moving to tribe and village stage, you have to get many things right at the same time. To achieve this, you need an altogether a different approach for the execution and people who will execute that plan.
  15. Look at the below metrics. It shows the kind of analytics and number crunching successful companies do to move fast. CEO’s and senior folks of the company see these numbers on daily basis
  16. When you move to village stage, as a founder you have to answer few fundamental questions about:
    1. Are you the right CEO for this stage?
    2. What is the core mission, culture, and values to enable rapid distribution scaling?
    3. How to fire the right HR guy that can support the hyper growth?
    4. Who are those key executives required to support execution in critical areas?
    5. How to develop tobust reporting to allow you and your senior team to learn about where execution is going and how that can support in creating future plans?
  17. Embed communicating about your core values & culture in your hiring & onboarding processes. Or you will end up being a culture less company
  18. Here are the Linkedin culture & value details. When your sales head links those values and organization culture, that’s where it will give you the competitive advantage.
  19. As a founder, put down points why people should join your company. And make this communication visible internally & externally. At qilo, we have taken an alternative approuc, where in all JD’s we put in “Why you should not join us”. Here are the points from latest JDWhy you should NOT join us
    • If you don’t put in efforts in identifying and/or pursuing your passions in life
    • If you cannot put in extended working works to achieve WOW results for the customers.
    • You don’t believe in taking ownership and accountability of assigned work.
    • If you are NOT a good self- learner.
    • You don’t know how to crack jokes 🙂
  20. Getting your technical, HR and operational process in place is essential to make the large team work together properly. And keep optimizing these processes to improve efficiency.

 

Keep watching this blog for more notes and awesome articles. I personally feel this session has given me a very good level of understanding what I should be focusing on as one of the co-founders of qilo. Hope you have enjoyed this article too.