Blitzscaling 13: Shishir Mehrotra on Scaling YouTube and The 10 Things That Matter

This is my eleventh 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. Session 9 notes can be found here. Session 10 notes here.  Session 11 notes here. Session 12 notes are here

In session 13,  Shishir Mehrotra, who helped guide YouTube through hyper growth shared 10 things that matter when you scale your early stage organization.

10things that matter

  1. Tailwind is an aviation industry term which means wind pushing the aircraft from its back; resulting in the higher speed of aircraft; opposite of tailwind is “headwind”, which means air is pushing the aircraft from its front, resulting in the slower speed. When applying this term to start-up world; “tailwind” means your start-up is or will be riding an existing wave of change, for example:-early stage businesses working in renewable energy which we taking advantage of society becoming sensitive about the environment.  “Highwind” means your start-up is or will be moving against a reluctance towards a change. for example:- Cloud based businesses 10 years ago was struggling to prove their point to CIO’s that cloud based hosting is way cheaper that on-premise server hosting. Success doesn’t matter whether your early stage business is tailwind or headwind. But being in tailwind, you can avoid many mistakes which headwind start-up businesses has done in past.
  2.  Purpose is one of the core dimensions that motivates people to do what they do. Mastery and autonomy are the other two dimensions. Purpose means connect what you do and why you do it. If you don’t communicate about your purpose, people will keep doing the transactions, which will never lead to WOW for your customers.
  3. Thesis matters means you have to focus on core & simple insights of your domain. Discovering those simple insights is going to take hell lot of time.
  4. Deciding which metrics to measure is very important. At Coca-Cola rather than measuring their market share vs Pepsi, someone at Coca-Cola suggested measuring Coca-Cola share in customer’s stomach. That measure resulted in Coca-Cola investing in packaged food products & drinking water. At YouTube, Shishir and team shifted measuring “Watch time Of YouTube” vs  “Watch time Of Television”. The previous metric that was measured at YouTube was the number of video’s uploaded to ad revenue to the quantity of ad’s coming to office. YouTube set a goal to increase its watch time from 100 million to 1 billion hours of watch time for Television. So setting the right type of metric to measure helps you to accelerate growth in the right direction. Pro tip: Use OKR to measure the progress on your business metrics
  5. Its often hard to make decisions in your business when you don’t have enough data. So you need more and more data to simplify your decision-making. The best decisions are those which simplify your life in making next 10 decisions.
  6.  Every business is a part of eco-system doesn’t matter how big you are. And there are set of people in that ecosystem on you have relied on to make you grow. And it’s very easy to presume their incentives if you don’t ask.Don’t presume things, collect data and/or ask hard questions, you might get more insights on this. For YouTube, their ecosystem is content producers. And YouTube worked hard to come up with the model on how to incentives the content producers.
  7. Value Matters as you grow. Think about your values well in advance before you become big enough that you can’t work on those & you can’t explain them or inculcate them in your employees.
  8. Talent matters alot for growing your organization. Divide your entire landscape of talent into 4 level as follows and compare them on their performance to decide who to take forward and whom to work with and who should be those who get out of the system.

Level 1) Executors: People who do day to day execution

Level 2) How to execute: People who give instruction on how to execute the things

Level 3) Solution to work on: These are the people who identify the solution to problems                       and priorities to execute

Level  4) Which Problems to solve:  These are the people who figure out which problems to solve

When you are starting a company having a small team, people do everything. And if you got a people, specially co-founders who cannot think at all the level, it’s not good. But as you grow, you need people specific for each level. Where companies go wrong is when they compare the performance of people at level 1 with level 2, this means you lack transparency in your organization about the roles. Define proper roles and measure the performance of people among same roles.

9) Your roles matters in an organization and if that role is impacting the work of many people in the organization, you better avoid micromanage your people, or become a dictator or become a one who over empathizes.

10) When you are setting up your goal’s & objectives, your team members should have exposure to the bigger picture. You as CEO have to align every individual with the higher purpose of the organization. This will result in high level of commitment within your organization.

Blitzscaling 12: Nirav Tolia on Growing Nextdoor and the Path to Monetization

This is my tenth 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. Session 9 notes can be found here. Session 10 notes here.  Session 11 notes here

Nirav Tolia is  the Co-Founder and CEO of Nextdoor. In session 12, Nirav shared his insights into building Nextdoor and his insights on how to grow fast. Here are the session notes and my interpretations on the insights shared.

  1. The median time required to take your start-up to do break even, take it public has increased from 5 years to more than 7 yo 10 years(Stanford Research).
  2. The faster your product/app moves in ranking in app store, the faster it comes down. So slow, steady growth and consistency is still the success formula.
  3. Before scaling your way, do the manual dirty work yourself. This is to validate if what you are going to offer will work or not in offline mode. If it works in offline mode, then put in resources & money to automate the things.
  4. Initially, focus on the quality of your product that solves a problem. Then focus on scaling your product & then sales. Google calls this toothbrush test, which means “Can you create a product which people use at least once a day”.
  5.  Your interpretation & intuition about ‘what is working & what is not’ may be wrong. But if you can define the metrics to challenge your intuition, then you may find the correct path.
  6. Think of your start-up as treadmill where every morning you have to wake up & run on it. You won’t get any credit for the miles covered and remember that you have to run on it again every morning. And if you are not feeling like running a particular morning, and if this starts happening more, than its a serious problem.
  7. If you read the newspaper’s (especially English ones) today, you don’t know what is happening around you in your local communities. The best way to do that is crowdsourcing that news from people living in the local community. That’s what Nextdoor is helping local communities to achieve.
  8. You build user growth, then usage engagement and then revenue scale in that order. But user growth, user engagement & monetization, each of these problems are unique in their own nature & equally difficult. And the way to solve this problem is to divide this problem into stages. That’s the path Facebook, Linkedin, Twitter, & Whatsapp has taken.
  9. Five management objectives to focus on at any given point of time. Review these objectives quarterly or annually depending on the stage in which your company is. A framework to implement this is OKR. At qilo, we help organisations by implementing this.
    1. Growth
    2. Engagement
    3. Monetization
    4. Infrastructure
    5. People
  10. As you start to scale , have more and more people in your organisation, you have to start thinking about your people, the various career paths they will have and organisation structure to maximise people performance.
  11. Hire a great HR leader for your growing organisation. Because HR will eventually help you to execute those big goals backwards.
  12. It’s all about your people that will help you move the mountains. CEO’s job is to tell why people should move this mountain.
  13. Your title doesn’t make you leader or entrepreneur; your team and your people do.
  14. Get your mentor who has been there and done that. Ignore theory consultants who throw our jargon’s.
  15. Be extremely cautious about every penny going out of your company while you are on the path of earning revenue.
  16. The basic difference between Google and Facebook is demand fulfilment and demand generation.Google follow’s demand fulfilment model where you come up and search say “digital camera”. And it shows ads related to that. Whereas Facebook follows demand generation, where you see ads of “digital camera” which your friends have shown interested in. This will help you identify which platform suits you for digital marketing.

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.