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Hypergrowth | 69<br />

key is to stay focused. A trick that helps people think about<br />

annual doubling is to break it into quarterly goals. To double<br />

in a year, you must grow by 20 percent each quarter—actually<br />

it’s 18.9 percent, but close enough. Instead <strong>of</strong> focusing on the<br />

distant, giant numbers, I would focus on the next two quarters.<br />

“You’ve got twenty people today. That’s twenty­four in three<br />

months and twenty­nine in six. Do you have nine people in<br />

your hiring pipeline?” I practiced doing the math for 20 percent<br />

growth in my head. Managers who weren’t on track for the next<br />

two quarters would never succeed at doubling in a year.<br />

••<br />

The first lesson <strong>of</strong> hypergrowth is Everything is always broken.<br />

Relax, because it’s a good thing. Of course, there are good<br />

problems and bad problems. We need more <strong>of</strong>fice space. Our<br />

demand exceeds our production capacity. We have too many<br />

orders to process. I love to hear problems like this. On the<br />

other hand: Everyone is quitting. Sales are down. Our investors<br />

are dissatisfied. Not good.<br />

Problems during doubling tend to be the good kind, and<br />

pointing that out to people can help morale. Our VP <strong>of</strong> engineering<br />

at the time, Helen Bradley, did this. When people<br />

complained about sharing small cubes that were designed for<br />

just one person, Helen said, “Be careful what you wish for. My<br />

last company had plenty <strong>of</strong> space—because people were being<br />

laid <strong>of</strong>f.”<br />

Systems and processes that work well for a small company<br />

<strong>of</strong>ten fail for a larger one. Accounting s<strong>of</strong>tware designed<br />

for $10 million in revenue didn’t scale to $100 million. We

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