Hoffman Process Quotes

Revolution is not something fixed in ideology, nor is it something fashioned to a particular decade. It is a perpetual process embedded in the human spirit.

I have a message for your daughter,” said Cale. “I am bound to her with cables that not even God can break. One day, if there is a soft breeze on her cheek, it may be my breath; one night, if the cool wind plays with her hair, it may be my shadow passing by.” And with this terrible threat he faced forward and the procession started once more. In less than a minute they were gone. In her shady room Arbell Swan-Neck stood white and cold as alabaster.

But when it comes to most skills, failure is the only way to become better at something. Knitting teaches you that. You may have to unwind all of your stitches and start anew. That doesn’t mean you’ve wasted your time. You learn from every stitch, even those that don’t amount to anything. All writers should be made to knit a hat before they start writing a novel. It would help with understanding the importance of revision, and that the process is what can bring you the most

The tinkering of evolution can concoct perceptual interfaces with endless forms most beautiful and most wonderful; the vast majority of these, however, are to us most inconceivable. Evolution is not finished tinkering with the perceptual interfaces of Homo sapiens. The mutations that bless one in twenty-five with some form of synesthesia are surely part of the process, and some of these mutations might catch on; much of the tinkering centers on our perceptions of color. Evolution defies our silly stricture that our perceptions must be veridical. It freely explores endless forms of sensory interfaces, hitting now and then on novel ways to shepherd our endless foraging for fitness.

There’s a common misconception that Silicon Valley is the accelerator of the world. The real story is that the world keeps getting faster—Silicon Valley is just the first place to figure out how to keep pace. While Silicon Valley certainly has many key networks and resources that make it easier to apply the techniques we’re going to lay out for you, blitzscaling is made up of basic principles that do not depend on geography. We’re going to show you examples from overlooked parts of the United States, such as Detroit (Rocket Mortgage) and Connecticut (Priceline), as well as from international companies, such as WeChat and Spotify. In the process you’ll see how the lessons of blitzscaling can be adapted to help build great companies in nearly any ecosystem, albeit with differing degrees of difficulty. That’s the mission of this book. We want to share the secret weapon that has allowed Silicon Valley to punch so much (more than a hundred times) above its population index so that those lessons can be applied far beyond the sixty-mile stretch between the Golden Gate Bridge and San Jose. It is sorely needed.

we need to write down laws or principles that precisely specify these processes and the conscious experiences with which they are identical. If we propose that conscious experience is an illusion arising from some brain processes attending to, monitoring, and describing other brain processes, then we must state laws or principles that precisely specify these processes and the illusions they generate. And if we propose that conscious experiences emerge from brain processes, then we must give the laws or principles that describe precisely when, and how, each specific experience emerges.

I looked at him and drew him into a poignant silence, traced my fingers over his lips, I watched Dominic’s green-grey eyes with fiery certainty as I swiped my thumb on his plump bottom lip and then pulled down, opening it for a kiss. He surrendered and slid his tongue against mine almost on instinct, which is when I made my move. Grabbing his tongue at first gently between my teeth, I felt him tense and shudder, the movement replaced with a moan and an acquiescence when I sucked it hard to a tingling numbness between my lips. I repeated the movement a couple of times before letting him go, and by the time I did he was close to tearing my t-shirt with the ferocity of his grip. Dominic drew in a sharp, desperate breath when I pulled back, and stared at me, wide-eyed and trying to process this. Every stage of understanding played over a fistful of split-seconds on his face, and at last he whispered: “Do you mean what I think you mean by that?” Excerpt From: Hoffman, Vee. “Acclamation.” Indie Inklings Ltd. iBooks. This material may be protected by copyright. Check out this book on the iBookstore: https://itunes.apple.com/WebObjects/M... Excerpt From: Hoffman, Vee. “Acclamation.” Indie Inklings Ltd. iBooks. This material may be protected by copyright.

Creativity is what happens after the strategy is done. Creativity is the process that transforms a strategy into a terrific ad.

As much as companies might yearn for a stable environment and employees might yearn for lifetime employment, the world has irrevocably changed. But we also can’t keep going the way we’ve been going. Trust in the business world (as measured by the proportion of employees who say they have a “high level of trust in management and the organization” they work for) is near an all-time low.6 A business without loyalty is a business without long-term thinking. A business without long-term thinking is a business that’s unable to invest in the future. And a business that isn’t investing in tomorrow’s opportunities and technologies—well, that’s a company already in the process of dying.

Engineers hate doing throwaway work. Not only is it wasteful, it offends their sense of efficiency. They are firm believers in the conventional wisdom that says it’s better to build your product right the first time, so you only have to build it once. But when you’re blitzscaling, inefficiency is the rule, not the exception. To prioritize speed, you might invest less in security, write code that isn’t scalable, and wait for things to start breaking before you build QA tools and processes. It’s true that all of these decisions will lead to problems later on, but you might not have a later on if you take too long to build the product. A hack that takes a tenth of the time may be more useful than an elegantly engineered solution, even if it has to be thrown away later.

Culture is a key part of the hiring process at Airbnb too. Each candidate also goes through a values interview, conducted by an Airbnb employee who isn’t that candidate’s hiring manager. This ensures that values are considered independently of how much the organization needs that candidate’s particular job skills.

Given Mozilla’s small initial size, this growth necessitated hiring executives from the outside (“the graft”), which was particularly challenging because of the company’s strong engineering-driven culture (“the host”) that was already skeptical about outsiders. John was able to do this successfully by following the same three-step process that was used to hire him. Hire someone who is already a known quantity to at least one member of the team. John was hired by Mitchell Baker, his predecessor as CEO of Mozilla. The two had gotten to know each other by serving on a board together, and Mitchell’s personal endorsement of John carried weight with the team at Mozilla.

Good security starts with good design that con‐ siders the distributed nature of the application. Hoffman also takes time to stress that security is not a singular event, but rather a process that must be folded into the entire software development life cycle.

One area that undergoes the most change during blitzscaling is the internal communications process. As the company grows, you have to shift from informal, in-person, individual conversations to formal, electronic, “push” broadcasting and online “pull” resources.

Regular e-mails to all employees are a common best practice. Blitzscaling masters Patrick Collison and YouTube’s Shishir Mehrotra also employed this technique to manage their rapidly growing organizations. “I was a big believer in writing a weekly email,” Shishir told our Blitzscaling class at Stanford. “Leaders [who] write things down tend to deal with [fewer] communications issues. You have to clarify your thought processes in a completely different way.

At the heart of this book is a belief best articulated by the artist Alan Gussow: “The catalyst that converts any physical location- any environment- into a place, is the process of experiencing deeply. A place is a piece of a whole environment that has been claimed by feelings. Viewed simply as a life-support system, the earth is an environment. Viewed as a resource that sustains our humanity, the earth is a collection of places.

LinkedIn founder Reid Hoffman puts it this way: There's a bunch of things that, structurally, start‐ups have as advantages over big companies. One is speed across all levels. It's not just speed at raw execution. But it's also speed of hiring, speed of decisioning, speed of learning, speed of judgment of product‐market fit, etc… . They [big companies] have a group consensus process, so that if they're going to take a risk, somebody who's in a managerial or executive role will question that risk. So it's hard for them to do, hard to move quickly.

It’s tempting to assume she achieved this despite the “Nos.” But in truth, each of those 148 “Nos” was a clue that ultimately made her business even stronger. Some sharpened her view on who her user was—and who her user wasn’t. Some helped her grasp how her competition might think. And some gave her an early warning about the ways her company might fail. At the end of the fundraising process alone, Kathryn had a roadmap marked with every potential pitfall she’d need to navigate around—and the unexplored territory she could explore ahead of any competitors.

As with her previous tours, the process of defining the tour was a collaboration between Gultekin and her manager. “Dan always asks, ‘What do you want to do in five years?’ and we work backwards from there,” Gultekin told us. “I want to be a general manager, so we decided that I needed to add sales to my toolkit. I had never done sales in my life but he knew that my fresh perspective could be useful.” Notice how the mission had to serve the needs of both the employee and the business; Gultekin and LinkedIn have a strong alliance because they have the mutual trust to commit to a mutual investment (shifting to sales) that will provide mutual benefit (a more well-rounded skill set for Gultekin, and a fresh perspective for LinkedIn).

The Universal Waite card also depicts the final stage of grief – coming to terms with the situation, getting depressed, and looking to find the bright side in all the mess. This is the stage when people fully accept the loss, contemplate available choice, and begin their process of healing. This process is perhaps the hardest and most critical aspect of grief. If this phase is not fully completed, an individual may find himself scarred for life. Allow yourself to feel the pain; let it course through you. Will yourself to calm down, and begin the process of figuring a path forward. You will eventually look back at your experiences and thank yourself for choosing to heal.

How to Write your Own Success Story Everyone’s story is unique. Where your story starts may not be up to you, but where it ends definitely is. Every twist and turn is an opportunity to choose what comes next. Make that choice authentically yours, and you can’t do anything but succeed. Your Rough Draft We all have a different way of finding out what will work for us. But no matter which route we take on the journey to success – however you define it – we have to get into the messy and the profound in equal measure. And once it all comes together, the structure will make sense: the who, the why and the how. As you’re reading this, you’re probably frantically wondering how to do this, or finding reasons why it can’t happen. Great. You’ve just stumbled on your first limiting belief, the one that’s literally stopping you from creating the outcome you want. At this point, you can deepen your brainstorming process. Imagine what is real, true and possible. Not what you think is real, true and possible but what actually is. Once you have a rough idea of what you truly deeply want, learn from those who’ve gone before you on this journey. They have a lot to share and they can teach us about how to create the conditions for successful follow through. Hint….its about being authentic and invigorated. Your state of being is everything. Writing Your Success Story: the Essentials 1. Tolerate Uncertainty If you want to write a new success story for yourself, commit to a brand new way of thinking and being. It’s normal to feel afraid of what you can’t see ahead. How you choose to be with that fear is a central key to your success. Who do you need to be to create what you want? To tolerate the uncertainty of letting go of the old to make way for the new? 2. Take Your Time Remember to allow that learning takes time. How long it takes for it to all come together depends on you and the universe. Time is your friend, no matter how it feels. There’s no deadline. There is only now. Are you giving yourself an arbitrary deadline? One you feel you ‘should’ be able to meet? Are you holding unhelpful, unrealistic expectations of yourself? 3. The Lure of the ‘One Right Way’ There’s another common misperception out there that there must be one, perfect and efficient way to get this right. People are in such a hurry to make the change, feel happier, and get that business started, that they miss all the best guideposts to change. In writing your next best steps, your authentic self is trying to get your attention. Are you listening? Responding? 4. “I did it my way” There is only your way. How you find it is up to you. Once you’ve committed to creating your great story, understand that you’ve signed up for a miraculously creative endeavour. There’s no getting it right in the first attempt, or even the fifth… There’s only living the new way of being once you understand what the change actually is – practicing it until it’s fully integrated into your everyday life. Ask yourself, What way of being are you ready to incorporate into your day? How will you hold yourself accountable for this commitment to yourself? When you pay attention to the process, there’s no way for you to fail.

Among non-Jewish Jews there have been some who, in addition to their alienation from Jewish roots, have not felt rooted in the non-Jewish society in which they lived. During the last century, some of these Jews have contributed to intense Jew-hatred. These are radical and revolutionary Jews. The reasons for the antisemitism they engender are unique. First, their challenges to non-Jews do not come from within Judaism. Second, they not only challenge the non-Jews’ values, but the non-Jews’ national and religious identity as well. Third, they are as opposed to Jews’ values and identity as to non-Jews’. Nevertheless, and unfortunately for other Jews, the behavior of these radical non-Jewish Jews is identified as Jewish. The association of Jews with revolutionary doctrines and social upheaval has not, unfortunately, been the product of antisemites’ imaginations. Marx, Trotsky, Kamenev, Zinoviev, Rosa Luxemburg, Béla Kun, Mark Rudd, Abbie Hoffman, Jerry Rubin,William Kunstler, Norman G. Finkelstein, and Noam Chomsky are among the better known.2 The phenomenon of the highly disproportionate role played by Jews in radical causes often has been commented upon. As the social psychologist Ernest van den Haag noted, “although very few Jews are radicals, very many radicals are Jews: out of one hundred Jews five may be radicals, but out of ten radicals five are likely to be Jewish. Thus it is incorrect to say that a very great number of Jews are radicals but quite correct to say that a disproportionate number of radicals are Jews. This was so in the past, and it has not changed.”3 How are these Jewish radicals made and why do they cause antisemitism? The making of a Jewish radical is a complex social and psychological process but its essential elements can be discerned. First, these individuals have inherited a tradition of thousands of years of Jews challenging others’ values—though of course in the name of Judaism and ethical monotheism rather than radical secular ideologies. Non-Jewish Jews do not base their radical doctrines on the Jewish tradition; indeed, they usually denigrate it, but the tradition’s impact could not be avoided, only transformed.4 Second, radical non-Jewish Jews are rootless in that they do not feel rooted in either the Gentiles’ or the Jews’ religion or nation. They may very well have become revolutionaries precisely to overcome this root-lessness or alienation. Because they refuse to become like the non-Jews by identifying with the non-Jews’ religious or national identities, they seek to have non-Jews (and Jews) become like them, alienated from all religious or national identities. Only then, these revolutionaries believe, will they cease to feel alienated.

Empathy has also been identified as an essential component of numerous valued social processes, including positive parent-child relationships (Feshbach, 1987), effective client-therapist interactions (Rogers, 1975), and individuals’ application of moral principles to real-life interpersonal situations (Eisenberg, 2000; Hoffman, 1987; Saarni, 1999).

A business without loyalty is a business without long-term thinking. A business without long-term thinking is a business that’s unable to invest in the future. And a business that isn’t investing in tomorrow’s opportunities and technologies—well, that’s a company already in the process of dying.

Having “extra” capital gives you a cushion for when outcomes do not in fact follow your plan. Moreover, it increases your optionality—if you need to invest in growth, you can do much more without having to go through the time-consuming process of raising another round. As Mariam Naficy, CEO of Minted, told me, “Act like you’ve got half the amount you have in the bank because you’ve got to factor in all the failures and all the optimizations that kill great entrepreneurs and businesses all the time. Both of us know so many people who had good ideas and were on the right track, but just ran out of money.” At both PayPal and LinkedIn, we raised large financing rounds right before a market meltdown (2000, 2008), and we sure were glad we did. In the case of PayPal, that money allowed us to keep growing during the dot-com bust; without it, we wouldn’t have made it to our IPO. In the case of LinkedIn, the situation wasn’t as dire, but I realized that the value of the optionality from additional funding far outweighed the potential negatives of equity dilution.

Culture is critical because it influences how people act in the absence of specific directives and rules, or when those rules reach their breaking point. In a notorious example from 2017, acting at the request of United Airlines, Chicago Department of Aviation employees forcibly dragged passenger David Dao off an overbooked flight, breaking his nose, knocking out two of his teeth, and giving him a significant concussion in the process. The next morning, United CEO Oscar Munoz sent a rather perplexing e-mail to United Airlines employees.

My friend Marc Andreessen has argued that “software is eating the world.” What he means is that even industries that focus on physical products (atoms) are integrating with software (bits). Tesla makes cars (atoms), but a software update (bits) can upgrade the acceleration of those cars and add an autopilot overnight. The spread of software and computing into every industry, along with the dense networks that connect us all, means that the lessons of blitzscaling are becoming more relevant and easier to implement, even in mature or low-tech industries. To use a computing metaphor, technology is accelerating the world’s “clock speed” (the rate at which Central Processing Units [CPUs] operate), making change occur faster than previously thought possible. Not only is the world moving faster, but the speed at which major new technology platforms are being created is reducing the downtime between the arrivals of each wave of innovation.

This is what happened when I cofounded LinkedIn. The key business model innovations for LinkedIn, including the two-way nature of the relationships and filling professionals’ need for a business-oriented online identity, didn’t just happen organically. They were the result of much thought and reflection, and I drew on the experiences I had when founding SocialNet, one of the first online social networks, nearly a decade before the creation of LinkedIn. But life isn’t always so neat. Many companies, even famous and successful ones, have to develop their business model innovation after they have already commenced operations. PayPal didn’t have a business model when it began operations (I was a key member of the PayPal executive team). We were growing exponentially, at 5 percent per day, and we were losing money on every single transaction we processed. The funny thing is that some of our critics called us insane for paying customers bonuses to refer their friends. Those referral bonuses were actually brilliant, because their cost was so much lower than the standard cost of acquiring new financial services customers via advertising. (We’ll discuss the power and importance of this kind of viral marketing later on.) The insanity, in fact, was that we were allowing our users to accept credit card payments, sticking PayPal with the cost of paying 3 percent of each transaction to the credit card processors, while charging our users nothing. I remember once telling my old college friend and PayPal cofounder/ CEO Peter Thiel, “Peter, if you and I were standing on the roof of our office and throwing stacks of hundred-dollar bills off the edge as fast as our arms could go, we still wouldn’t be losing money as quickly as we are right now.” We ended up solving the problem by charging businesses to accept payments, much as the credit card processors did, but funding those payments using automated clearinghouse (ACH) bank transactions, which cost a fraction of the charges associated with the credit card networks. But if we had waited until we had solved this problem before blitzscaling, I suspect we wouldn’t have become the market leader.

I am fond of pointing out to entrepreneurs and executives that “in theory, you don’t need practice.” What I mean is that no matter how brilliant your business model and growth strategy, you won’t be able to build a real-world (i.e., non-theoretical) blockbuster company without a lot of practice. But that problem is magnified when you’re trying to blitzscale. The kind of growth involved in blitzscaling typically means major human resources challenges. Tripling the number of employees each year isn’t uncommon for a blitzscaling company. This requires a radically different approach to management than that of a typical growth company, which would be happy to grow 15 percent per year and can take time finding a few perfect hires and obsessing about corporate culture. As we will discuss in more detail later in the book, companies that blitzscale have to rapidly navigate a set of key transitions as their organizations grow, and have to embrace counterintuitive rules like hiring “good enough” people, launching flawed and imperfect products, letting fires burn, and ignoring angry customers. Over the course of this book, we’ll see how business model, growth strategy, and management innovation work together to form the high-risk, high-reward process of blitzscaling.

In 2014, Aswath Damodaran, a professor of finance at NYU’s Stern School of Business, estimated that Uber was probably worth roughly $ 6 billion, based on its ability to ultimately win 10 percent of the global taxi market of $ 100 billion, or $ 10 billion. According to Uber’s own projections, in 2016 the company processed over $ 26 billion in payments. It’s safe to say that the $ 10 billion market was a serious underestimate, as the ease of use and lower cost of Uber and its competitors expanded the market for transportation-as-a-service.

The concept of product/ market fit originates in Marc Andreessen’s seminal blog post “The Only Thing That Matters.” In his essay, Andreessen argues that the most important factor in successful start-ups is the combination of market and product. His definition couldn’t be simpler: “Product/ market fit means being in a good market with a product that can satisfy that market.” Without product/ market fit, it’s impossible to grow a start-up into a successful business. As Andreessen notes, You see a surprising number of really well-run start-ups that have all aspects of operations completely buttoned down, HR policies in place, great sales model, thoroughly thought-through marketing plan, great interview processes, outstanding catered food, 30" monitors for all the programmers, top tier VCs on the board—heading straight off a cliff due to not ever finding product/ market fit. Unfortunately, it’s far easier to define product/ market fit than it is to establish it! When you start a new company, the key product/ market fit question you need to answer is whether you have discovered a nonobvious market opportunity where you have a unique advantage or approach, and one that competing players won’t see until you’ve had a chance to build a healthy lead. It’s usually difficult to find such an opportunity in a “hot” space; if an opportunity is obvious to everyone, the chance that you’ll be the one who succeeds is exceedingly low. Most nonobvious opportunities arise from a change in the market that the incumbents aren’t willing or able to adapt to.

Twitter came close to melting down in the same way, but managed to recover in time to build a massive business. When Twitter began its rise in the late 2000s, it became infamous for its “Fail Whale,” a whimsical error message that appeared whenever its servers couldn’t handle the load. Unfortunately for Twitter, the Fail Whale made fairly regular appearances, especially when big news hit, such as the death of the recording artist Michael Jackson in 2009 (to be fair, Twitter was hardly the only website that had these issues when the King of Pop passed away) or the 2010 World Cup. Twitter invested serious resources into rearchitecting both its systems and its engineering processes to be more efficient. Even with this strenuous effort, it took several years to “tame” the Fail Whale; it wasn’t until after Twitter made it through the 2012 US presidential election night without melting down that the company’s then–creative director Doug Bowman announced that the Great Blue Whale had been put to death.

The equivalent to AWS on the hardware side is China. Hardware start-ups are able to manage infrastructure limitations and scale much more quickly by tapping into Chinese manufacturing capabilities, either directly or by working with companies like the custom manufacturing design firm PCH. The smart thermostat maker Nest, for example, had only 130 employees when it was acquired by Google for $ 3 billion, largely because it had outsourced all of its manufacturing to China. In contrast, Tesla Motors has seen its growth held back by infrastructure limitations. Due to the complexities of its manufacturing process, Tesla’s production rates have lagged behind those of other automakers, the result being that its award-winning vehicles are almost always sold out, with back orders measured in months and even years. Demand generation is not a problem for Tesla; meeting that demand is.

People should be part of building the future rather than feeling like the future is being forced upon them. Blitzscaling is what separates the start-ups that get disrupted and disappear as the world changes from the ones that scale up to become market leaders and shape the future. This book was born out of a class we taught at Stanford in which we dissected the process that went into growing the world’s largest technology companies and then codified a series of tactics and choices that made it work. The result was a specific set of principles that describes how to grow multibillion-dollar companies in a handful of years. While writing this book, we talked to hundreds of entrepreneurs and CEOs, including those of the world’s most valuable companies, such as Facebook, Alphabet (Google), Netflix, Dropbox, Twitter, and Airbnb. (You can hear a number of these conversations on my podcast, Masters of Scale.) Even though the stories of their companies’ rise were very different in many ways, the one thing they all had in common was an extreme, unwieldy, risky, inefficient, do-or-die approach to growth.

For example, in 2015, Payal Kadakia, the founder of ClassPass (a monthly subscription service for fitness classes) decided that she needed to double the size of her staff in just three months so that ClassPass would be able expand into more cities. To achieve this kind of speed, Kadakia and her team abandoned traditional hiring processes and followed two simple rules. First, they hired people from their personal networks, with an emphasis on “branded” talent. For example, if an employee had a friend, and that friend worked for the management consulting firm Bain & Company, that friend got hired because ClassPass could assume that the person was smart and would get along with people. Second, some of the time saved by not interviewing for skills allowed the team to interview for alignment with the company’s mission. Crazy? Perhaps. But ClassPass was in a crowded, emerging market, and being able to hire faster than the competition helped it maintain and increase its leadership position. Blitzscaling also requires a strong focus on risk management. While blitzscaling requires risk taking, it doesn’t require unnecessary risk taking. Indeed, the higher level of risk associated with blitzscaling makes risk management even more valuable and important. As Yahoo! cofounder Jerry Yang told us in an interview for Reid’s Masters of Scale podcast, “All bold strategies have a risk. If you don’t see it, you’re flying risk-blind.

Mental Accounting Alarm clocks and Christmas clubs are external devices people use to solve their self-control problems. Another way to approach these problems is to adopt internal control systems, otherwise known as mental accounting. Mental accounting is the system (sometimes implicit) that households use to evaluate, regulate, and process their home budget. Almost all of us use mental accounts, even if we’re not aware that we’re doing so. The concept is beautifully illustrated by an exchange between the actors Gene Hackman and Dustin Hoffman in one of those extra features offered on DVDs. Hackman and Hoffman were friends back in their starving artist days, and Hackman tells the story of visiting Hoffman’s apartment and having his host ask him for a loan. Hackman agreed to the loan, but then they went into Hoffman’s kitchen, where several mason jars were lined up on the counter, each containing money. One jar was labeled “rent,” another “utilities,” and so forth. Hackman asked why, if Hoffman had so much money in jars, he could possibly need a loan, whereupon Hoffman pointed to the food jar, which was empty. According to economic theory (and simple logic), money is “fungible,” meaning that it doesn’t come with labels. Twenty dollars in the rent jar can buy just as much food as the same amount in the food jar. But households adopt mental accounting schemes that violate fungibility for the same reasons that organizations do: to control spending. Most organizations have budgets for various activities, and anyone who has ever worked in such an organization has experienced the frustration of not being able to make an important purchase because the relevant account is already depleted. The fact that there is unspent money in another account is considered no more relevant than the money sitting in the rent jar on Dustin Hoffman’s kitchen counter.