Thursday, February 02, 2017

Understanding The Donald's management style

Forget for a moment whether you like or hate Donald Trump. This is a post about his style. It's from Scott Adams, the creator of the Dilbert cartoon. On his blog, Adams has been studying Trump's style for months.

Right now, the narrative in the legacy media is that Trump is creating chaos. Here's what Adams says:
The whole point of Trump’s flurry of activity is that he’s trying to create good outcomes. We don’t know if the good outcomes will pan out. All we know is that it was a bit messy at the start.

Is being a bit messy a sign of a problem? Not if you’re the entrepreneurial, disruptive, candidate of change who just got elected. 
Let me explain another management concept that the pundits don’t understand because, generally speaking, they don’t have the right kind of education or experience to analyze a business process.

There are two basic styles of management. One is the cautious style of Fortune 500 companies. The other is the rapid-iteration and A/B testing style of entrepreneurs. Trump is bringing the latter style to the office. The markers for this style of management include: 
1. Rapid and decisive hiring and firing.
2. Bias toward action.
3. Rapid A/B testing. Release the early beta version and judge reactions. Adjust accordingly.
4. Emphasis on the psychology of success. Entrepreneurial management includes lots of persuasion and bullshit because entrepreneurs have to fake it until they make it. In other words, they have to create demand via persuasion.
Now compare that to the large company style:
Big companies move slowly in both hiring and firing. They get caught in “analysis paralysis” because no one wants to be seen as making a mistake. And they don’t do rapid testing and iteration with consumers. They try to get it right before any customers see the product.
Watch the big companies spring yet another bug-infested version on you, and you'll understand the style.

No comments:

Post a Comment