Thursday, October 26, 2017

Little Bets - Peter Sims

Little bets:

  • Small decisions/goals/tasks
  • Large companies fail because they look for large billion dollar markets rather than experimenting with smaller markets that might grow: E.g: HP
  • Affordable loss principle: Make decisions based on  what you can afford to lose, rather than on expected gain

Growth mind set:

  • Large number of small attempts with multiple failures, rather than one large bet
  • Fixed mind set: Abilities/intelligence is fixed. Growth mind set: Results are determined by effort, not intelligence. 

Fail fast to learn fast:;

  • Healthy perfectionism: Driven by desire for excellence. Unhealthy perfectionism: Driven by fear of failure
  • Fail fast through little bets around prototypes

Genius of play:

  • Environments that lead to improvisation result in creativity
  • Plussing (Pixar): Idea evolution in a team is through a series of "ands" rather than "buts"

Problems are the new solutions:

  • Break large problem into smaller problems. E.g. Walt Disney Concert Hall, Agile development, McMaster's Iraq strategy

Questions are the new answers

  • Need to go out into the world and ask questions to find the problems. E.g. Grameen Bank, McMaster's Iraq strategies
  • Encourage voracious questioning

Learning a little from a lot

  • Learn from everyone, to get different persepctive
  • Build an open network of diverse people, and maintain it to constantly receive different perspectives

Learning a lot from a little

  • Seek out active users (early adopters). They provide 75% of improvements you will need

Small wins

  • Little bets can lead to small wins. Small wins can lead to successes.