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Tech Book of the Month
  • Tech Book of the Month
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July 2022 - Deep Work: Rules for Focused Success in a Distracted World

This month we learn about the explore popular productivity book Deep Work, by Cal Newport, a professor of theoretical computer science at Georgetown.

Tech Themes

  1. Deep vs. Shallow. Just like Lady Gaga and Bradley Cooper, we, too, are trying to avoid the shallow. Newport starts his book with an overview of Deep Work compared to Shallow Work. Deep Work is focused, undistracted efforts at achieving the peak of your abilities. On the other hand, Shallow Work includes small, logistical tasks that the brain does not need to be entirely active to solve. Newport argues that more time should be spent in Deep mode. It leads to greater productivity and offers a way for individuals to differentiate themselves with the quality of work they do. In Newport's mind, the distracted Tiktok-obsessed world we currently inhabit is only getting more Shallow, so embracing Deep Work is the only way to survive. Shallow Work tends to involve lots of context switching from Task A to Task B. When this context-switching is repeated incessantly throughout the day, our ability to focus on anything diminishes, and we can end up in a permanent state of shallowness.

  2. Deep Styles. Newport believes there are four core styles of Deep Work: Monastic, Bi-modal, Rhythmic, and Journalistic. The Monastic philosophy of Deep Work tries to completely eliminate all distractions. An example of Monastic Deep Work is famed computer science professor and Turing award winner Donald Knuth. Knuth does not have an email address. As he explains: "I have been a happy man ever since January 1, 1990, when I no longer had an email address. I'd used email since about 1975, and it seems to me that 15 years of email is plenty for one lifetime. Email is a wonderful thing for people whose role in life is to be on top of things. But not for me; my role is to be on the bottom of things. What I do takes long hours of studying and uninterruptible concentration. I try to learn certain areas of computer science exhaustively; then I try to digest that knowledge into a form that is accessible to people who don't have time for such study. On the other hand, I need to communicate with thousands of people all over the world as I write my books. I also want to be responsive to the people who read those books and have questions or comments. My goal is to do this communication efficiently, in batch mode --- like, one day every six months." Clearly, the monastic state tries to maximize deep work by shutting everything else out. The Bi-Modal philosophy asks the studier to program stretches of life wholly dedicated to Deep Work. Newport uses famous Penn psychology professor Adam Grant, as an example. Grant batches all of his teaching in the fall and all of his research in the spring. This schedule allows him to flip between modes into excellent-teacher Adam and excellent-researcher Adam. In these states, he's entirely dedicated to being the best at each subdomain, providing simplicity, clarity, and purpose to his routines and focus. Rhythmic philosophy entails finding certain times of day to work in stretches of Deep Work. This approach is the most accessible style of Deep Work for people who don't control their schedules. Newport recommends you plan out a week's worth of Deep Work in regular chunks to establish a routine for getting your mind ready to "Go Deep." The last Deep Work mode, the Journalistic philosophy, may be the most challenging style but can have incredibly intense effects. Newport gives Walter Issacson as an example here: "It was always amazing … he could retreat up to the bedroom for a while, when the rest of us were chilling on the patio or whatever, to work on his book … he'd go up for twenty minutes or an hour, we'd hear the typewriter pounding, then he'd come down as relaxed as the rest of us … the work never seemed to faze him, he just happily went up to work when he had the spare time." Find a philosophy that works for your current work structure!

  3. Busyness != Productivity. In today's corporate world, many people equate busyness with productivity. Have I been sending and receiving emails all day? Have I been in meetings? Have I completed five zoom calls? These all feel vaguely productive, or maybe they don't. But either way, they take up large portions of our day. One only has to look at the hilarious new trend of young employees at mega-tech companies posting about their busy days doing what amounts to 3 hours of work while being spoiled by ridiculous offices and employee perks. Maybe this is why Facebook and Google have recently publicly told employees that their organizations are not very productive. Zuckerberg went as far as to say: "Realistically, there are probably a bunch of people at the company who shouldn't be here." Sundar Pichai created a "Simplicity Sprint "week to identify ways to make Google's 174,000 employees more productive. The world may be in for a more focused, intensely productive time with an imminent recession looming. Maybe that is why so many great companies are borne out of times of trouble?

Business Themes

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  1. Think Weeks and Unconcious Processing. Bill Gates is famous for taking two weeks a year completely off to set new directives for his life and professional work. We covered this in our June 2021 book regarding information overload in investing. Newport definitely likes the idea of Think Weeks - encouraging people to find separate locations from home or work to build creative momentum for the week. Individuals can also take some grand action, like traveling to a remote place or paying a significant sum for specialized accommodation to signal the importance of the work they are about to attempt. Newport also dives into the idea of unconscious processing or a work shutdown. Newport argues that downtime aids insights, helps recharge the energy needed to work deeply, and pushes us to focus only on necessary things (i.e. that nighttime email responses are usually not super important).

  2. Four Disciplines of Execution (4DX). To help people in their Deep Work journies, Newport introduces us to the Four Disciplines of Execution (4DX), a framework created by the FranklinCovey company for helping companies work better. FranklinCovey is the business associated with Stephen Covey, and his highly successful 7 habits of Successful People and First Things First. His son Sean Covey, wrote and popularized 4DX. The four disciplines espoused by the framework are: (1) Focus on the Wildly Important, (2) Act on Lead Measures, (3) Keep a Compelling Scoreboard, and (4) Create a Cadence of Accountability. Clearly, the first discipline focuses on identifying the significant goals we want to achieve. The second discipline is a bit more nuanced and prompts us to think more about the inputs to success rather than the success itself. As an example, a company might have a revenue target for the year, but that target could be broken down into simple actions by the sales team to reach out to customers, understand use cases, and position the company's product to help. Discipline 2 argues that we should focus on these leading indicators of success rather than revenue achievement itself. The third discipline is about creating consistency and identifying success. Jerry Seinfeld offers a great example of this practice: "He [Jerry Seinfeld] told me to get a big wall calendar that has a whole year on one page and hang it on a prominent wall. The next step was to get a big red magic marker. He said for each day that I do my task of writing, I get to put a big red X over that day. 'After a few days you'll have a chain. Just keep at it and the chain will grow longer every day. You'll like seeing that chain, especially when you get a few weeks under your belt. Your only job next is to not break the chain.' 'Don't break the chain,' he said again for emphasis." This advice likely explains the phenomenon of maintaining Snapchat streaks at all costs. The fourth discipline is about establishing accountability for achieving the goals set out during the previous week. FranklinCovey insists that you hold yourself accountable each week. Hopefully, all that's needed is a 15-minute scheduled window to see your progress. The 4DX method is straightforward, clear, and helpful for executing any goal.

  3. Amp it Up. In the spirit of next month's TBOTM, let's talk about amping up the intensity of our Deep Work. Newport discusses the early and incredible success of Teddy Roosevelt in what seemed like everything he tried. As one blogger notes: "While at Harvard, TR developed an intense study or "deep work" attitude. He would schedule every minute of his day including every activity, meal breaks, and classes. Any "spare time" was slated for study - study that did not include daydreams, sips of tea or any sign of indecision. He focused, without breaks, an intense frenzy of concentrated energy." As BusinessInsider notes, the way to incorporate this into our lives is by: "Newport says one way to incorporate rewarding deep work into your life is 'to inject the occasional dash of Rooseveltian intensity into your own workday.' This entails selecting a high-priority task, estimating how much time it would normally take you, and then creating a deadline well below the typical allotted time." Newport, a theoretical computer scientist, has a formula for how to describe this strategy: Quality Work (QW) = time Spent x Intensity. Quality work therefore does not always need to be achieved through laboring hours but can instead be supplemented with blistering intensity and focus. How do you achieve this superior intensity? There is no theory for becoming a more intense worker, but Newport believes that work intensity is a muscle that can be honed over time with more and more efforts of intense, Deep Work.

Dig Deeper

  • Cal Newport Explains Deep Work

  • Walter Isaacson | Full Address and Q&A | Oxford Union Web Series

  • Donald Knuth - My advice to young people (93/97)

  • The surprising habits of original thinkers | Adam Grant

  • Jerry Seinfeld — A Comedy Legend’s Systems, Routines, and Methods for Success | The Tim Ferriss Show

tags: Cal Newport, Deep Work, Lady Gaga, Bradley Cooper, Donald Knuth, Adam Grant, Walter Issacson, Facebook, Google, Sundar Pichai, Mark Zuckerberg, Snapchat, 4DX, Sean Covey, Stephen Covey, Jerry Seinfeld, Teddy Roosevelt
categories: Non-Fiction
 

March 2020 - The Hard Thing About Hard Things by Ben Horowitz

Ben Horowitz, GP of the famous investment fund Andreessen Horowitz, addresses the not-so-pleasant aspects of being a founder/CEO during a crisis. This book provides an excellent framework for anyone going through the struggles of scaling a business and dealing with growing pains.

Tech Themes

  1. The importance of Netscape. Now that its been relegated to history by the rise of AOL and internet explorer, its hard to believe that Netscape was ever the best web browser. Founded by Marc Andreessen, who had founded the first web browser, Mosaic (as a teenager!), Netscape would go on to achieve amazing success only to blow up in the face of competition and changes to internet infrastructure. Netscape was an incredible technology company, and as Brian McCullough shows in last month’s TBOTM, Netscape was the posterchild for the internet bubble. But for all the fanfare around Netscape’s seminal IPO, little is discussed about its massive and longstanding technological contributions. In 1995, early engineer Brendan Eich created Javascript, which still stands as the dominant front end language for the web. In the same year, the Company developed Secure Socket Layer (SSL), the most dominant basic internet security protocol (and reason for HTTPS). On top of those two fundamental technologies, Netscape also developed the internet cookie, in 1994! Netscape is normally discussed as the amazing company that ushered many of the first internet users onto the web, but its rarely lauded for its longstanding technological contributions. Ben Horowitz, author of the Hard Thing About Hard Things was an early employee and head of the server business unit for Netscape when it went public.

  2. Executing a pivot. Famous pivots have become part of startup lore whether it be in product (Glitch (video game) —> Slack (chat)), business model (Netflix DVD rental —> Streaming), or some combo of both (Snowdevil (selling snowboards online) —> Shopify (ecommerce tech)). The pivot has been hailed as necessary tool in every entrepreneur’s toolbox. Though many are sensationalized, the pivot Ben Horowitz underwent at LoudCloud / Opsware is an underrated one. LoudCloud was a provider of web hosting services and managed services for enterprises. The Company raised a boatload ($346M) of money prior to going public in March 2001, after the internet bubble had already burst. The Company was losing a lot of money and Ben knew that the business was on its last legs. After executing a 400 person layoff, he sold the managed services part of the business to EDS, a large IT provider, for $63.5M. LoudCloud had a software tool called Opsware that it used to manage all of the complexities of the web hosting business, scaling infrastructure with demand and managing compliance in data centers. After the sale was executed, the company’s stock fell to $0.35 per share, even trading below cash, which meant the markets viewed the Company as already bankrupt. The acquisition did something very important for Ben and the Opsware team, it bought them time - the Company had enough cash on hand to execute until Q4 2001 when it had to be cash flow positive. To balance out these cash issues, Opsware purchased Tangram, Rendition Networks, and Creekpath, which were all software vendors that helped manage the software of data centers. This had two effects - slowing the burn (these were profitable companies), and building a substantial product offering for data center providers. Opsware started making sales and the stock price began to tick up, peaking the attention of strategic acquirers. Ultimately it came down to BMC Software and HP. BMC offered $13.25 per share, the Opsware board said $14, BMC countered with $13.50 and HP came in with a $14.25 offer, a 38% premium to the stock price and a total valuation of $1.6B, which the board could not refuse. The Company changed business model (services —> software), made acquisitions and successfully exited, amidst a terrible environment for tech companies post-internet bubble.

  3. The Demise of the Great HP. Hewlett-Packard was one of the first garage-borne, silicon valley technology companies. The company was founded in Palo Alto by Bill Hewlett and Dave Packard in 1939 as a provider of test and measurement instruments. Over the next 40 years, the company moved into producing some of the best printers, scanners, calculators, logic analyzers, and computers in the world. In the 90s, HP continued to grow its product lines in the computing space, and executed a spinout of its manufacturing / non-computing device business in 1999. 1999 marks the tragic beginning of the end for HP. The first massive mistake was the acquisition of Compaq, a flailing competitor in the personal computer market, who had acquired DEC (a losing microprocessor company), a few years earlier. The acquisition was heavily debated, with Walter Hewlett, son of the founder and board director at the time, engaging in a proxy battle with then current CEO, Carly Firorina. The new HP went on to lose half of its market value and incur heavy job losses that were highly publicized. This started a string of terrible acquisitions including EDS, 3COM, Palm Inc., and Autonomy for a combined $28.8B. The Company spun into two divisions - HP Inc. and HP Enterprise in 2015 and each had their own spinouts and mergers from there (Micro Focus and DXC Technology). Today, HP Inc. sells computers and printers, and HPE sells storage, networking and server technology. What can be made of this sad tale? HP suffered from a few things. First, poor long term direction - in hindsight their acquisitions look especially terrible as a repeat series of massive bets on technology that was already being phased out due to market pressures. Second, HP had horrible corporate governance during the late 90s and 2000s - board in-fighting over acquisitions, repeat CEO fiirings over cultural issues, chairman-CEO’s with no checks, and an inability to see the outright fraud in their Autonomy acquisition. Lastly, the Company saw acquisitions and divestitures as band-aids - new CEO entrants Carly Fiorina (from AT&T), Mark Hurd (from NCR), Leo Apotheker (from SAP), and Meg Whitman (from eBay) were focused on making an impact at HP which meant big acquisitions and strategic shifts. Almost none of these panned out, and the repeated ideal shifts took a toll on the organization as the best talent moved elswehere. Its sad to see what has happened at a once-great company.

Business Themes

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  1. Ill, not sick: going public at the end of the internet bubble. Going public is supposed to be the culmination of a long entrepreneurial journey for early company employees, but according to Ben Horowitz’s experience, going public during the internet bubble pop was terrible. Loudcloud had tried to raise money privately but struggled given the terrible conditions for raising money at the beginning of 2001. Its not included in the book but the reason the Company failed to raise money was its obscene valuation and loss. The Company was valued at $1.15B in its prior funding round and could only report $6M in Net Revenue on a $107M loss. The Company sought to go public at $10 per share ($700M valuation), but after an intense and brutal roadshow that left Horowitz physically sick, they settled for $6.00 per share, a massive write-down from the previous round. The fact that the banks were even able to find investors to take on this significant risk at this point in the business cycle was a marvel. Timing can be crucial in an IPO as we saw during the internet bubble; internet “businesses” could rise 4-5x on their first trading day because of the massive and silly web landgrab in the late 90s. On the flip side, going public when investors don’t want what you’re selling is almost a death sentence. Although they both have critical business and market issues, WeWork and Casper are clear examples of the importance of timing. WeWork and Casper were late arrivals on the unicorn IPO train. Let me be clear - both have huge issues (WeWork - fundamental business model, Casper - competition/differentiation) but I could imagine these types of companies going public during a favorable time period with a relatively strong IPO. Both companies had massive losses, and investors were especially wary of losses after the failed IPOs of Lyft and Uber, which were arguably the most famous unicorns to go public at the time. Its not to say that WeWork and Casper wouldn’t have had trouble in the public markets, but during the internet bubble these companies could’ve received massive valuations and raised tons of cash instead of seeking bailouts from Softbank and reticent public market investors.

  2. Peactime / Wartime CEO. The genesis of this book was a 2011 blog post written by Horowitz detailing Peacetime and Wartime CEO behavior. As the book and blog post describe, “Peacetime in business means those times when a company has a large advantage vs. the competition in its core market, and its market is growing. In times of peace, the company can focus on expanding the market and reinforcing the company’s strengths.” On the other hand, to describe Wartime, Horowitz uses the example of a previous TBOTM, Only the Paranoid Survive, by Andy Grove. In the early 1980’s, Grove realized his business was under serious threat as competition increased in Intel’s core business, computer memory. Grove shifted the entire organization whole-heartedly into chip manufacturing and saved the company. Horowitz outlines several opposing behaviors of Peacetime and Wartime CEOs: “Peacetime CEO knows that proper protocol leads to winning. Wartime CEO violates protocol in order to win; Peacetime CEO spends time defining the culture. Wartime CEO lets the war define the culture; Peacetime CEO strives for broad based buy in. Wartime CEO neither indulges consensus-building nor tolerates disagreements.” Horowitz concludes that executives can be a peacetime and wartime CEO after mastering each of the respective skill sets and knowing when to shift from peacetime to wartime and back. The theory is interesting to consider; at its best, it provides an excellent framework for managing times of stress (like right now with the Coronavirus). At its worst, it encourages poor CEO behavior and cut throat culture. While I do think its a helpful theory, I think its helpful to think of situations that may be an exception, as a way of testing the theory. For example, lets consider Google, as Horowitz does in his original article. He calls out that Google was likely entering in a period of wartime in 2011 and as a result transitioned CEOs away from peacetime Eric Schmidt to Google founder and wartime CEO, Larry Page. Looking back however, was it really clear that Google was entering wartime? The business continued to focus on what it was clearly best at, online search advertising, and rarely faced any competition. The Company was late to invest in cloud technology and many have criticized Google for pushing billions of dollars into incredibly unprofitable ventures because they are Larry and Sergey’s pet projects. In addition, its clear that control had been an issue for Larry all along - in 2011, it came out that Eric Schmidt’s ouster as CEO was due to a disagreement with Larry and Sergey over continuing to operate in China. On top of that, its argued that Larry and Sergey, who have controlling votes in Google, stayed on too long and hindered Sundar Pichai’s ability to effectively operate the now restructured Alphabet holding company. In short, was Google in a wartime from 2011-2019? I would argue no, it operated in its core market with virtually no competition and today most Google’s revenues come from its ad products. I think the peacetime / wartime designation is rarely so black and white, which is why it is so hard to recognize what period a Company may be in today.

  3. Firing people. The unfortunate reality of business is that not every hire works out, and that eventually people will be fired. The Hard Thing About Hard Things is all about making difficult decisions. It lays out a framework for thinking about and executing layoffs, which is something that’s rarely discussed in the startup ecosystem until it happens. Companies mess up layoffs all the time, just look at Bird who recently laid off staff via an impersonal Zoom call. Horowitz lays out a roughly six step process for enacting layoffs and gives the hard truths about executing the 400 person layoff at LoudCloud. Two of these steps stand out because they have been frequently violated at startups: Don’t Delay and Train Your Managers. Often times, the decision to fire someone can be a months long process, continually drawn out and interrupted by different excuses. Horowitz encourages CEOs to move thoughtfully and quickly to stem leaks of potential layoffs and to not let poor performers continue to hurt the organization. The book discusses the Law of Crappy People - any level of any organization will eventually converge to the worst person on that level; benchmarked against the crappiest person at the next level. Once a CEO has made her mind up about the decision to fire someone, she should go for it. As part of executing layoffs, CEOs should train their managers, and the managers should execute the layoffs. This gives employees the opportunity to seek direct feedback about what went well and what went poorly. This aspect of the book is incredibly important for all levels of entrepreneurs and provides a great starting place for CEOs.

Dig Deeper

  • Most drastic company pivots that worked out

  • Initial thoughts on the Opsware - HP Deal from 2007

  • A thorough history of HP’s ventures, spin-offs and acquisitions

  • Ben’s original blog post detailing the pivot from service provider to tech company

  • The First (1995-01) and Second Browser War (2004 - 2017)

tags: Apple, IBM, VC, Google, HP, Packard's Law, Amazon, Android, Internet History, Marc Andreessen, Andreessen Horowitz, Loudcloud, Opsware, BMC Software, Mark Hurd, Javascript, Shopify, Slack, Netflix, Compaq, DEC, Micro Focus, DXC Technology, Carly Firoina, Leo Apotheker, Meg Whitman, WeWork, Casper, Larry Page, Eric Schmidt, Sundar Pichai, batch2
categories: Non-Fiction
 

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