The creed of authenticity demands you choose ‘d’, but in practice many founders are more likely to choose ‘a, ‘b’ or ‘c’.
Netflix’s Reed Hastings chose ‘d’ and did it with candor, solid information, no punches pulled or rationalizations and in a very public way.
“I messed up,” Mr. Hastings wrote in an unusually forthright September 2011 blog post. (…) In hindsight, I slid into arrogance based upon past success. (…) I wasn’t naïve enough to think most customers care if the C.E.O. apologizes, but I thought it was honest and appropriate.”
He made three other good points that are worth remembering
“Don’t get distracted by the shiny object,” he said. And if a crisis comes, “execute on the fundamentals.”
“…we don’t manage for the stock price.”
“Executing better on the core mission is the way to win.”
Most importantly, he doesn’t see himself or Netflix as infallible and admits that another wrong turn could kill them.
There are a lot of founders who should take heed of his attitude and his words.
Several people I’ve talked with recently have quoted from Eric Ries’s The Lean Start Up with almost the same religious fervor people espouse Guy Kawasaki or Steve Jobs.
I haven’t read it yet, but after reading a brief column in WSJ’s About Tech Europe and watching the video I realized that Ries probably doesn’t appreciate that kind of blind devotion any more than Kawasaki or Jobs and is quick to say so.
Much of what he says is common sense,
“If 10 people in a row hate my product is that statistically significant? It is not conclusive evidence, but it is certainly telling you something.”
If you have 100 customers you can already say what percentage are paying. If it is zero then I can already start to be a bit worried about the model.”
which is often the easiest to rationalize or ignore.
Of course, you ignore it at your peril.
If you have read The Lean Startup please share your thoughts below; I’ll share mine after I’ve read it.
Entrepreneurs face difficulties that are hard for most people to imagine, let alone understand. You can find anonymous help and connections that do understand at 7 cups of tea.
Crises never end.
$10 really does make a difference and you’ll never miss it,