43: John Cutler - Everything wrong with everything in a business
Nov 12, 2023
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John Cutler, best systems thinker discusses the misconceptions of efficiency and productivity, the challenges of scaling businesses, the complexity of knowledge and expertise, the importance of consistency, the influence of random rewards on habit formation, and tracking habits and behaviors in business.
Understanding the three levels of thinking when managing growing pains in a company: trade-offs between scale and inefficiency, challenges of maintaining core efficiency during growth, and strategic inefficiencies for long-term goals.
The importance of continuously reevaluating processes in a rapidly scaling company to ensure their effectiveness and adaptability, and the need for flexibility and the ability to challenge existing processes to foster innovation.
The significance of embracing being a beginner and not oversimplifying or attributing success to simple reasons, as well as the power of consistency and the distinction between principles and frameworks in achieving goals.
Deep dives
Levels of Thinking: Efficiency, Resilience, and Strategic Inefficiencies
The podcast discusses three levels of thinking when it comes to managing growing pains and operational efficiency in a company. The first level is focused on trade-offs between scale and inefficiency, which is common for most organizations. The second level involves recognizing the challenges of maintaining core efficiency while experiencing growing pains. The third level, known as strategic inefficiencies, highlights the ability to strategically take on debt or temporary inefficiencies to achieve long-term goals. The episode emphasizes the importance of understanding these levels and the potential pitfalls of inexperienced founders or leaders who attempt to navigate strategic inefficiencies without proper knowledge.
The Challenge of Consistency and Change in a Scaling Company
The podcast delves into the challenges of implementing and reevaluating processes in a rapidly scaling company. It emphasizes that while it is easy to establish processes, it is often difficult to modify or eliminate them when necessary. The episode highlights the importance of continuously reevaluating processes to ensure their effectiveness and adaptability. Additionally, it explores the tension between efficiency and innovation and the struggle larger companies face in maintaining innovation at scale. The discussion emphasizes the need for flexibility and the ability to question and challenge existing processes to foster innovation.
Understanding the Nuances of Efficiency and Productivity
The episode raises important considerations about the definitions and implications of efficiency and productivity. It points out that these terms can vary depending on the perspective and background of individuals within a company. The discussion highlights the difference between short-term efficiency, which focuses on immediate gains and near-term effects, and long-term capital efficiency, which involves using resources effectively to achieve strategic goals. It emphasizes the need for nuanced understanding of these concepts and the potential pitfalls of assuming one-size-fits-all approaches. The episode also touches on the challenges of implementing and driving change in a corporate environment, underscoring the complexities and potential resistance to change that organizations face.
The Importance of Embracing Being a Beginner
One of the main points discussed in the podcast is the significance of embracing being a beginner. The speaker highlights how in our desire to appear experienced and knowledgeable, we often overlook the value of starting from the beginning. This is illustrated by comparing it to professional sports, where no one becomes skilled without practical training and experience. The speaker emphasizes that there is nothing wrong with being a beginner and cautions against the tendency to oversimplify or attribute success to simple reasons. It is important to acknowledge the complexity of processes and challenges and not overcomplicate them.
The Power of Consistency and the Misuse of Frameworks
Another key point discussed in the podcast is the power of consistency and the misuse of frameworks in achieving goals. The speaker shares personal experiences and insights about consistency, highlighting its importance in making progress. They caution against the common mistake of trying to take on too much or creating unrealistic habits. The speaker emphasizes that consistency can be achieved by dedicating even a few minutes daily and focusing on building a sustainable habit. Additionally, the speaker critiques the simplistic approach often seen on social media, where people present complex topics as easy and oversimplify the challenges faced. They highlight the distinction between principles and frameworks, emphasizing the need to go beyond frameworks and adopt principles that promote consistent and sustainable habits.
John Cutler is the best systems thinker I know. Whenever we talk, there’s a beautiful meta-analysis around systems happening. Why do we work the way we do? Why can we not figure out how to run businesses efficiently if we do it so often?
Why do inexperienced, brilliant people constantly get into trouble, and how do they get out of it?
Individual vs. team habits
How much of our decisions is gut vs. objectivity
Leadership porn and its connected biases
Timestamps: 6:50 How people throw words like “efficiency” and “productivity” around and do not understand them
13:25 Product operations is thinking about what can remain and what has to go in the future.
19:50 Growing pains vs. normal pains. Why do young, smart people constantly get into really bad situations with their businesses?
25:05 Experts will always tell you that things are simple. Why tips on LinkedIn don’t work but are still popular.
30:15 How to be consistent.
38:00 The unbeautiful side of establishing habits. Individual vs. team habits
50:20 Leadership “porn”, why you should not search for broken components in organizations. Going broad first before specific.