Giving Up On An Idea

Software Social

Michele Hansen 0:00
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Colleen Schnettler 0:42
So Michele, I saw a tweet you had the other day where you just casually dropped that you were quoted in Adam Grant's new book, what is that about?

Michele Hansen 0:54
Yeah, it's kind of a funny story. So Adam Grant, who wrote Originals, has a new book out called Think Again. And a vignette from my application to my old job, actually is in the book. It's kind of crazy.

Colleen Schnettler 1:15
So how did that happen?

Michele Hansen 1:17
So he gave a talk at the place I used to work. And the talk was on sort of unexpected findings and learnings. And there was just one particular story he told that prompted me to go ask him a question and talk to him afterwards. And I love that story, if I can just tell it for a second. So he was saying how there was this startup that was pitching some venture capitalists for funding. And in addition to all of the slides, you would expect about, you know, the problem they're solving and how they're doing it, and why they are the team to do it, and how they're taking over the world and all those kinds of things. They also had a slide in there, that straight up said all of the reasons why their company may not work.

Colleen Schnettler 2:08
Hmm. Okay.

Michele Hansen 2:10
Yeah. And it's not something that people normally put in a slide deck. And what really stuck out to me was he said that instead of the VCs going, Yeah, you're right, like, this idea sucks, your company's never going anywhere, your team isn't qualified, like, all right. Instead, the VC started problem solving with them, and talking about how they could help the company overcome these problems and avoid these pitfalls. And it went from this kind of, I don't want to describe it, like pitching as an adversarial relationship, but it's definitely like a weird, icy dance. To one that was really collaborative, and they were diving in together and and those sort of veneers were dropped. And, and he was talking about how, you know, they they said that it wasn't going to work out. And then that made people more interested in and talking to them and helping them.

And so I went up to talk to him afterwards, because that that kind of reminded me of the application that I had written to the company. Because I had written in the application, basically, that I was probably not the candidate that they were envisioning, and that I didn't meet the qualifications they were asking for, but that I had other things that I was bringing to the table. And so he, you know, tells that story. In the book, I was also on his Work/Life podcast a couple of years ago telling that story.

Colleen Schnettler 3:50
It's so cool. Yeah, it's,

Michele Hansen 3:51
it's kind of

Colleen Schnettler 3:52
weird. You're like secretly famous, and you never told us? Like you should have.

Michele Hansen 3:57
I don't I don't know if I'm, I'm sorry, Colleen. Yeah, it's, it's it's pretty wild seeing my own name in print. But anyway, so since I'm in this book, and also I just enjoy his books in general. I figured he should read it. Yes, choice choice. He did send me a free copy of it. So and I absolutely loved it.

Actually, there was some the part in it that kind of reminded me of something that you've been going through, and is something that's really common that I see in entrepreneurs, people who are starting out and also people who've been doing it for a long time.

Colleen Schnettler 4:39
Which is...

Michele Hansen 4:40
So I'm going to if you'll bear with me for a moment, I am just I'm going to read from the book. I have it in front of me here and it's a couple of paragraphs, so just bear with me here.

So he's talking about if you can train people to think more like scientists and do they end up making smarter choices. And so, he says:

A quartet of European researchers ran a bold experiment with more than 100 founders of Italian startups in technology, retail furniture, food, healthcare, leisure and machinery. Most of the founders businesses had yet to bring in any revenue, making it an ideal setting to investigate how teaching scientific thinking would influence the bottom line. The entrepreneurs arrived in Milan for a training program and entrepreneurship. Over the course of four months, they learned to create a business strategy interview customers build a minimum viable product and refine a prototype.
What they didn't know was that they had been randomly assigned to either a scientific thinking group or a control group. The training for both groups was identical except for that one was encouraged to view startups through scientists goggles. From their perspective, their strategies a theory, customer interviews help develop hypotheses, and their minimum viable product and prototype are experiments to test these hypotheses. Their task is to rigorously measure the results and make decisions on whether their hypotheses are supported or refuted.
Over the following year, the startups in the control group average under $300 in revenue, the startups in the scientific thinking group averaged over $12,000 in revenue. They brought in revenue more than twice as fast and attracted customers sooner too. Why? The entrepreneurs in the control group tended to stay wedded to their original strategies and products. It was too easy to preach the virtues of their past decisions, prosecute the vices of alternative options and politic by catering to advisors who favored the existing direction. The entrepreneurs who had been taught to think like scientists, in contrast, pivoted more than twice as often, when their hypotheses weren't supported. They knew it was time to rethink their business models.
What's surprising about these results is we typically celebrate great entrepreneurs and leaders for being strong minded and clear sighted. They're supposed to be Paragons of conviction, decisive and certain. Yet, evidence reveals that when business executives compete in tournaments to price products, the best strategies actually slow...<...