Build something that matters

The most highly funded startups by state.

Years ago I wrote an article about building something from nothing.  Years later that doesn't cut it. It isn't enough to just build something. You have to build something significant and profound.

There many startups at Carnegie Mellon University, the world's leading institution for artificial intelligence. When you talk to the people building them, you'll quickly realize that these people rarely think about the business - they are thinking about the technology. These companies consist of a magical sensor, a web of sensors, or stream of data. These companies assume that customers exist who need such magical sensors. Sometimes it is true. Sometimes people really do need that missing piece of data. But many times, only one person needed it. 

Designing the business is altogether different. In many ways, a great business doesn't require a great technology. Often the business model is really old.  Buy low and sell high. Information arbitrage. If you can find the business model that has always worked then accelerate it with novel technology, it will probably work. Why? Because people are usually getting something they can't get somewhere else. They are getting something special. The transaction is faster, but the product actually matters.

So do that. Build things that matter.

How to Build Something from Nothing

 

The article was initially published on 1/27/16 at www.humanitarianspace.com. It has been relocated here for continuity. 

Trying to explain my day job to the American Geographical Society at Geo2050. November 2015.

Everyday I have to give someone a 15 second summary of what I do for a living.  I often have to say it about 3 or 4 times a day, and depending on who I am talking to, the language shifts a little. Also, every year this task gets more difficult because its isn't always clear if I should describe what I've done, what I am doing now, or what I would like to do in the near future. 

These days it comes out something like "I specialize in designing technologies and processes that shift deeply entrenched problems" and then a rambling line with "...  cities...wars... robots... digital ethnography... machine learning... geospatial technology." 

This is clearly a terrible introduction.

In general terms, I solve really hard problems for others, but it is hard to explain everything in 7 seconds because while the problems are constant, their workings change, and in response my skills change at a rapid pace.  In 2010 I was entirely focussed on postwar reconstruction. A year ago I founded a fast-growing technology company that mobilizes breakthroughs in robotics for processing unstructured data.  Today I work with the White House Innovation Fellows as an innovation specialist, ripping through complex public problems from veterans services to cybersecurity with big transformative leaps.

So rather than stumble through a lackluster introduction on skills, these days I tend to summarize all of my work with a single line.

"I specialize in the ability to build something from nothing."

This is not mere urban planning, management, or entrepreneurship. It is a specific skill to create complex entities that thrive from zero or near-zero resources.  More importantly, the things I build do not require my ongoing participation to continue and flourish.  Initiatives I created years ago still exist in far away places, overseen and operated by people who have never heard of me.  Of course doing this isn't easy. Its a carefully considered and honed expertise founded on some core concepts.

• No Ego. Any given person cannot be central or necessary to the operation of the entity or its continuation.  If you design an entity according to the objectives, emotions, and expectations of one or two people - including yourself- then it will fail to succeed over time because it will forever be limited by the constraints that you alone carry or will carry. You can be a stakeholder in your own work but it should not be about or for you. It should not be designed to serve you (especially if this is to be a profitable business). For successful startups, this is often phrased in an epic mission statement... but it doesn't have to be so bold. It simply must serve others more than it serves yourself.  If it cannot be justified as such, then it is not likely a worthwhile pursuit.

• Build Psychological Scaffolding. The components of the entity exist as a suspension - not a mixture -so that the tensions are just as critical to the success as the harmonies.  For example, if building a business, you cannot expect everyone to get along, so your odds of success improve if the business is designed to leverage hostilities between people. You cannot expect to like all your employees. You cannot expect to always be pleased by performance or to hire excellent people. So what is the plan?  You can rotate through a constant stream of people, but nothing will grow from this except your own frustration. To build something, you must expect have a range of personalities and capabilities, and many will conflict so build for that conflict, not to avoid it.  Certainly there are times you need to ditch people, but typically, as long as they are reliable enough to show up, you can design the work in relation to their strengths and ask little of their weaknesses while leveraging the internal conflicts into new opportunities for the organization.

• Resources are Flux. You cannot plan to rely upon any given resource pools, but must draw from finite resources that shift as distributions, compiled from diverse locations, and all resources have expiration dates. If you design and build an entity to rely upon a specific person, idea, model, or finance strategy, and these variables are orchestrated to come together with the expectation of a particular timing, you might succeed once or twice but then it will fail. Don't bother with that. You are wasting resources.  It is at least a great place to start as people are forever the greatest resource. According to "Lean Startup" you should design your product for a specific person with a specific problem - and I agree - that sensibility must drive the initial design. But people change, and you should expect that user to change as your solution is introduced, so you need to design for change over time, and not just for clients but also for investors, partners, and employees.

• Embrace Suffering.  Do not build an entity with the intention that "all will come together and it will be great."  Instead, design and build it for the  bad times. Imagine the worst possible scenario - what and who do you want by your side to manage that bad time? .If you created pathways for people to manage projects in different ways, to embrace different communication styles, and to maximize agility then you will be in a better position (see psychological scaffolding). But more importantly, seize the pain - its only temporary when it happens but those are the most important moments.  Ben Horowitz likes to talk about "CEOs in times of war and peace." The times of war - budget cuts, lost contracts, massive layoffs - are profound human experiences and it is those moments that define the future of the organization. Build to suffer.

• Generative Action-Thoughts Win. Often a new risky idea is proposed and someone (sadly the boss) will shut down these new ideas, usually because they fail to understand one of the above principals. Many people also want to talk about a given idea or possibility for a long period of time.  A better tactic - always - is to support a very small and rapid physical experiment on that idea.  A pencil drawing on a piece of paper, a quick survey on the street, or a couple phone calls will typically pull in new information and ways of thinking about the problem. Physical things and processes change the conversation and stupid ideas become radical insights. Always veer toward physical things - not ideas.

These principals appear abstract but there is a clear underlying thread throughout. Maintain a constant respect for others, do more and think less, and care less about the importance of yourself, your ideas, or your values.  Work for the bigger picture and mobilize the assets that come to you.  Obsessing about the right idea, the right execution, or the right result will only waste time and energy. Ultimately, if you want to build something bigger than yourself then you need to remove yourself from it, and it needs to be tangible. Everyday.

Design Comes First for High Tech Entrepreneurs: Quantum Computing, Robotics, Artificial Intelligence, BioComputing, Machine Learning

 

The article was initially published on 7/26/17 at www.humanitarianspace.com. It has been relocated here for continuity. 

While the design is increasingly central to the operations of established technology companies, it remains overlooked within research teams pursuing initial research of those same technologies. This is due to the lack of understanding held by high tech entrepreneurs about the role of design. They think it is decoration - when in truth - it is the fundamental process to transform abstract ideas into new realities. Design is the cornerstone to successful entrepreneurship.

In the last few weeks, I have had conversations with dozens of high tech startups that have one foot in the lab and one foot on the path to a new market. Interplanetary robotics, quantum computing, and super intelligent machines are exciting new domains described at length in business and technology magazines alike, yet these ventures struggle to overcome the leap from research in unstructured domains to generating meaningful human-product experiences and viable companies. They struggle to think and work like designers.

How Design Serves Advanced Technology Companies

Computers are everywhere. As more of our lives are inundated with computers - cars, planes, banks, security, government - the software on those computers is getting very sophisticated and difficult to test. It is also difficult to build to ensure that it is testable. Think of the complexity to manage all air flights in a country, the testing of that software is critical to everyone's safety - but with so many airplanes, airports, satellites and so on - how do you test it?

In my engagement with machine learning companies throughout Silicon Valley and Pittsburgh, I found one that has solved this problem. They build tools to help other big companies build reliable software for complex systems.  They can even predict if your company is going to create a bug before it happens. It is incredible.

The company does amazing work and is profitable. Yet they have a terrible website. They know it. Their tools do not really have a user interface that users enjoy using or easily understand. Their software is very advanced and difficult to communicate.  It is challenging to hire for this company. They see every market as possible and yet are not sure how to access them. Their work is in such high demand they are doing well... but will this always be the case?  What are the limits of their current market? How do they know?

Upon offering to help with the website, I've since had multiple conversations with the founder of this company. I understand the technical details of their software. As a researcher, I am equipped to study and understand the problems they face. I also am a designer so I am able to communicate it to people who do not understand.  Consequently, as a designer, I also have methods to rapidly TEST & LEARN from the range of possible consumers on how to tailor the language, the product, and the transaction. We do not, consequently, have to worry about marketing or even business development. With design, we can KNOW and VALIDATE our language, our image, our transaction, and our team to transform machine learning into highly needed customer solutions. With Design, we can better engineer success, not just software.

This is Different than The Current Business Models and Operations

At each startup, the conversation unfolds the same way every time.  I ask about the product and the CEO demonstrates or describes the product. I ask about the business and they display a prepared document or slide deck on the business strategy and organizational shape.  I ask about financing and they tell me about early mistakes made impacting future financing for the negative. I ask about the distinction between the market they set out to pursue vs the market opportunity they have discovered - and they start to get depressed.  I ask about new market or growth opportunities, and they say "we hope to figure that out soon... " and perhaps "if only we could hire the right person for business development."

Hire the right person for business development?

Certainly, the most important aspect of building a company is the team. Yet to assume that the success of the business - to align internal operations to market demand - is the job of a solo individual is misguided.  MBA programs tout the ability to transform graduates into such beings - and there are many times this person can hold an instrumental role - but for highly sophisticated technologies, there is no evidence that a traditional business approach will always work.  To make the assumption is high risk.

In addition, when I ask "do you have a designer?" - the CEO confuses my question, thinking I asked: "Do you have someone to make this pretty?"  They say no or "that is important, but we aren't there yet" or "we know it needs to be attractive so we outsource that, we have someone make it look good." The worst ones point to their current success and say "we don't need a designer, we are doing just fine" and months later are panicking because they had all along been meeting the needs of only one or two clients and could not actually scale their business. By their definition, to have a designer on the team is expensive and the person would sit around most the time with nothing to do. If they learn their lesson - it is often too late.

Design Driven Business is an Optimized Transaction

Every company requires some basic components - they need the product, they need an efficient way to generate the product, they need a clear path to connect to the consumers for the product, they need a very simple mechanism to exchange the product for capital, and they need the ability to do this over and over again.  If this process is well tuned, the capital acquired will outweigh the capital exhausted and the company can flourish.

Nothing in this product demands marketing, or branding, or financial planning. There is no need to hire agile coaches or communications consultants. I also mentioned nothing about aesthetic design. These things - these tasks - are simply tools to help solve the core problem: the material transaction. The material transaction is made possible by the optimized movement of information. It is possible to invest in these things to make that transaction happen, but within an unknown market for an untested product, operating on the thresholds of possibility... it is difficult to measure the effectiveness of these tools. Marketing language, targetted advertising, and agile product development are all just attempts to optimize the movement of information. Yet with advanced technologies, early wins are just as likely events of luck. There is no way to know.

Design is the Process to Optimize Transactions

Designers are specialized in the art of communication. This communication may take place through graphic text, plastic form, or even through the process of a work itself (this is where the post-its come into use). Optimized communication within a team will increase efficiency, to transform a team from thinkers to doers but with less technical debt.  Optimized communication to external consumers will get the two groups together faster for the transaction to take place.

Optimized design of the transaction itself - a form of communication - will result in high satisfaction for everyone.  If transactions are fast and positive, and communication from the buyer can connect to the team (who internally is optimized to leverage it by communicating), the transaction will take place again.

You can call this stuff strategy, marketing, team building, communications, - whatever you want. But to get from lab to market - you are better off to optimize your business by starting with Design.

Going beyond the method: The separation between great professionals and true experts

From Chadwicks Systems View of Planning, 1971

There is a lot of industry concerned with method. We buy books for cooking and we watch youtube videos to learn how to sing, play piano, knit, and skateboard. 

I suspect a method, however, is a little more developed than a technique. It is a string of techniques, and thus functions as a form of knowledge in itself. 

Back in the 1950s, the world was transfixed by methods. Lean manufacturing, urban planning, and design methods were all developed as ways to intelligently identify, engage, and solve complex problems. The industry is still booming today, with evangelists covering Linkedin and twitter for Agile Coaching, Service Design, and a range of other "isms." Job ads regularly hire based on method as well. Do you know how to do focus groups? UX Research? Rapid digital prototyping?  It is not enough to know how to write the code, you need to know the method to apply the code in a meaningful way.

Personally, I love methods. I collect them. I collect books on methods (like Chadwicks 1971 publication on systems planning, above) and I am constantly trying to learn new methods across many different fields. Consequently, what I find problematic about methods in industry is not the requirement or mastery, but rather the lack of imagination.

Product designers, for example, have thoroughly codified their profession around methods. Interviews, sketch sessions, value mapping sessions, and paper prototyping are a string of methods to inform product development and strategy. They work fairly well, and are therefore repeated across industries and problem sets. 

But what about the creation of new methods? Whose job is to do that? After all, someone invented many of the methods relied upon today. Specific persons pioneered these canvasses and concepts, then shared or taught them with others. 

What I find alarming is that so few designers are inventing methods. Creativity is a foundation principle of the discipline, and yet the methods are redundant. 

Perhaps then, this is the mark of distinction between good professionals and great ones, the question you should ask at your next interview: "Tell about a time you invented a method to solve a problem."