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HBR On Strategy

To Make Better Decisions, Think Like a Venture Capitalist

Apr 2, 2025
Ilya Strebulaev, a professor at Stanford Graduate School of Business and co-author of "The Venture Mindset," discusses how businesses can benefit from thinking like venture capitalists. He explains the importance of accepting failure while pursuing impactful investments. Strebulaev highlights the advantage of fostering a culture of disagreement to enhance decision-making, suggesting strategies like appointing a devil's advocate. He also emphasizes how agility and innovation in large organizations can be improved by embracing diverse opinions and refining decision-making practices.
24:44

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Quick takeaways

  • Embracing failure as a learning opportunity is crucial for growth, allowing organizations to foster innovation and experimentation.
  • Transitioning from a culture of consensus to valuing constructive disagreement enhances creativity and decision-making effectiveness in uncertain environments.

Deep dives

Embracing Failure as a Core Principle

A fundamental aspect of a venture capitalist mindset is the willingness to embrace failure as part of the growth process. This mindset encourages business leaders to view failures as learning opportunities rather than mere setbacks. An illustrative example is that venture capitalists expect most of their investments to fail, with successes being the anomaly that defines their portfolios. By focusing on the potential home runs and letting go of less successful projects, organizations can cultivate an environment that supports experimentation and innovation.

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