REWORK
Shape Up Principle: The Betting Table
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Quick takeaways
- The betting table is a formalized process where decisions are made on which pitches will be developed in the next cycle, taking into consideration factors such as business goals and trade-offs.
- The betting table is not a committee but a council where one person makes the final decision, avoiding the pitfalls of committee-driven decision-making and establishing clear roles and responsibilities.
- Pitches that are not chosen during the betting table do not automatically carry over to the next cycle, but exceptional pitches may be considered for future cycles if timing or other factors prevent their selection.
- The asynchronous nature of the betting table allows for thoughtful consideration and avoids time zone challenges, promoting fairness, contemplation, and efficient consumption of information.
- The iterative nature of the betting table provides multiple opportunities to shape future work, building trust and confidence among participants and leading to improved decision-making over time.
- The kickoff, which outlines the selected projects and team assignments, is typically written after the betting table process, allowing for effective resource management and planning for the upcoming cycle.
Deep dives
The Betting Table Process
The betting table is where formalized pitches are discussed and decisions are made on what features will be developed in the next cycle. Factors such as business goals, company appetite, and trade-offs are taken into consideration during this process. It typically involves three or four people, who engage in asynchronous conversations through Basecamp. The final selection is made by one person, who considers input from various sources. The outcome of the betting table is a kickoff that outlines the chosen projects and the team members who will work on them.
Selection Authority and Iterative Decision-Making
The betting table is not a committee, but rather a council where one person ultimately makes the final decision. This avoids the pitfalls of committee-driven decision-making and enables clearer roles and responsibilities for other participants. While advisors passionately advocate for their views, the decision-making authority rests with one person, typically Jason. The iterative process allows for debates, arguments, and changing positions, with the understanding that decisions may vary based on different perspectives.
Handling Unselected Pitches and Planning for Future Cycles
Pitches that are not selected during the betting table do not automatically get a seat at the next cycle. However, if a pitch is of great quality but not chosen due to timing or other factors, it may be considered for future cycles. There is no backlog of ideas waiting to be addressed, as the focus is on the current cycle. Trust is built through the understanding that there will be more opportunities to revisit pitches in subsequent cycles, and that decisions are not locked in for an extended period of time.
Assigning People to Projects and Considering Resources
During the betting table, team members are often assigned to specific projects based on availability, skill sets, and fit. This helps ensure that the work can be completed by the available team members and accounts for factors such as on-call rotations. The process involves aligning the abstract time budget of each project with the available team members on a calendar. The goal is to strike a balance between assigning people to projects and leaving room for flexibility and adaptations based on resource availability.
Benefits of Asynchronous Communication and Written Communication
The asynchronous nature of the betting table allows for thoughtful consideration and avoids time zone challenges. By having pitches written up in advance, participants have time to think through and present their thoughts. It promotes fairness, contemplation, and efficient consumption of information. If there is contention or conflicts arise, a call may be scheduled to further discuss and resolve the issues. Overall, written communication helps communicate ideas succinctly and enables efficient decision-making.
The Iterative Nature and High Stakes of the Betting Table
The iterative nature of the betting table is crucial, as it provides multiple opportunities to shape future work. Knowing that there will be future cycles reduces the pressure to include everything in a single betting table. The process builds trust and confidence among participants and allows for reflection on previous decisions, leading to improved decision-making over time. The high stakes nature of the betting table debates highlights the importance of the process in determining the direction and resources dedicated to solving for the next cycle.
The Link between Betting Table and Kickoff
The kickoff, which outlines the selected projects and team assignments, is typically written after the betting table process. In addition to deciding what features will be developed, the betting table also determines who will work on each feature, considering team availability and skill sets. This allows for effective resource management and planning for the upcoming cycle.
Managing Unselected Pitches and Avoiding Backlogs
Unselected pitches do not automatically carry over to the next cycle. However, exceptional pitches may be considered for future cycles if timing or other factors prevent their selection. There is no backlog of ideas waiting to be addressed, as the focus is on the current cycle and maintaining a flexible approach. This prevents the burden of clearing out a backlog and allows for new ideas to emerge based on changing customer needs and company priorities.
The Benefits of Asynchronous Communication and Written Pitches
Asynchronous communication and written pitches allow for considered and fair input from team members across various time zones. Written pitches provide a concise and deliberate way to communicate ideas and allow participants to think through their responses before discussions. This approach leads to streamlined consumption of information and efficient decision-making. When conflicts arise, a call can be scheduled to clarify the points of contention.
The Iterative Nature and Importance of the Betting Table
The iterative nature of the betting table ensures that decisions are not final and future cycles provide opportunities to revisit ideas. Trust and confidence are built through the understanding that the betting table is not the only chance to influence the product direction. The higher stakes in the debates highlight the significance of the process in determining resource allocation and shaping the product.
The Link between the Betting Table and Project Assignments
During the betting table, team members are typically assigned to specific projects based on availability, skill sets, and project requirements. The goal is to ensure that there are enough resources to complete the selected projects. Assignments are not set in stone and can be traded or adjusted based on individual preferences and discussions. The process also accounts for factors such as on-call responsibilities and aims to strike a balance between resource allocation and project requirements.
Benefits of Asynchronous Communication and Written Collaboration
Asynchronous communication and written collaboration benefit decision-making and discussion processes. They allow participants to contemplate pitches, provide thoughtful input, and engage in discussion at their own pace. Written pitches also enable more efficient consumption of information, as participants have time to review and refer back to the ideas presented. When needed, synchronous communication, such as calls, can be scheduled to address conflicts and clarify decisions.
The Iterative Nature and Confidence Building of the Betting Table
The iterative nature of the betting table provides multiple opportunities to shape the product and reassess decisions. This prevents long-term commitment to specific features or ideas. The process builds trust and confidence among participants, as they know they will have future betting tables to influence the product direction. This supports collaboration and open discussions, resulting in better decision-making over time.
The Connection between the Betting Table and Kickoff
The betting table informs the kickoff, which outlines the selected projects and assigns team members to each feature. During the betting table, project assignments are discussed based on availability, skill sets, and project requirements. This ensures that the right people are assigned to each project and that resources are properly allocated. The kickoff serves as a guide for the company, communicating which projects have been selected and who will be working on them.
Picture this: a dimly lit room where velvet-robed figures gather in secret to make decisions of paramount importance as the fate of the pitches for the next product development cycle hangs in the balance.
The "betting table” – where the formalized pitches for each six-week work cycle are selected – might seem mysterious but we're about to unravel its secrets.
Listen in as host Kimberly Rhodes sits down with 37signals co-founders Jason Fried and David Heinemeier Hansson to explore the unique inner workings of the "betting table" and how this process shapes each product development cycle.
Tune in to discover 37signals' approach to selecting and refining projects at the "betting table."
Check out the full video episode on YouTube
Show Notes:
[00:00] - Today on the podcast, the discussion focuses on the betting table and how the decisions are made about which pitches are selected and which projects to schedule.
[00:42] - Jason shares what the betting table is.
[02:26] - The betting table process: refining pitches into a kickoff document.
[03:17] - David shares the background behind the betting table and how it has evolved.
[05:51] - The betting table: passionately advocating for different views, with one person ultimately making the decision.
[06:51] - Ensuring that resource allocation decisions are made efficiently while avoiding committee-driven decision-making.
[08:56] - Decisions made at the betting table can sometimes be passed to others who are more passionate or informed about a particular project.
[10:04] - It's all about timing—unselected pitches don't automatically get another chance in the next cycle, but if they are relevant, they might.
[10:51] - Jason shares his biggest issue with backlogs.
[11:33] - David shares why Shape Up is such a powerful way of working and how the betting table process provides multiple opportunities to influence product direction.
[14:38] - Jason shares how the assignment of team members works during the betting table to ensure that the available resources match the selected projects.
[15:49] - David shares the background behind aligning pitch budgets with available resources and calendars during the betting table.
[19:55] - Why so much of the betting table process is asynchronous and done via written communication,
[22:54] - When calls might need to happen during the betting table process.
[23:57] - For more background on how 37signals manages product development, get your free copy of the book Shape Up. It is available here.
[24:13] - Don't forget you can still enter #TheUnderdogChallenge by sharing the story of your scrappy team on the 37signals LinkedIn post here for a chance to be featured on a future episode of Rework. The deadline to enter is September 15. Rework is a production of 37signals. You can find show notes and transcripts on our website. Full video episodes are available on Twitter and YouTube. If you have a specific question for Jason or David about a better way to work and run your business, leave your voicemails at 708-628-7850.
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