Page 168 - 6 Secrets to Startup Success

Startup Agility 147

STAY THE COURSE OR CHANGE DIRECTION: PRINCIPLES FOR
MAKING TOUGH CALLS

Rapid iteration builds agility into your business, but it’s important to
remember that iteration doesn’t always mean change. Iteration means
executing on an idea and then evaluating the result. Sometimes the
result will suggest staying the course. Some ventures iterate along
steady, stable paths where the costs of changing direction seem to out-
weigh the value of the change. When dealing with higher-level issues
involving major new products, systems, strategies, or business models,
entrepreneurs face both higher stakes and unclear choices. As Arthur
Rock, a seasoned entrepreneur and venture capitalist, wrote in his
classic 1987 Harvard Business Review article, “There’s a thin line be-
tween refusing to accept criticism and sticking to your guns.”12

Here are a few principles that apply to the challenge of how to
make tough calls when faced with difficult forks in the startup road:

9 Establish a balanced set of decision-making criteria that re-
flect your longer-term goals and the fundamentals of venture
success. Before becoming attached to a potential solution,
ground yourself in what you are trying to accomplish and
what is most important for the overall venture. A few exam-
ples: How does the potential change align with your passion,
purpose, and capabilities as a founder? How well does it align
with market realities? How does it perform from a customer
and market perspective? How will it impact cash flow and
your overall math story? How easy or difficult will it be to
successfully execute?

9 Strive to generate multiple alternatives from which to choose,
rather than impulsively going with the first change or solu-
tion that comes to mind. It usually takes little time to gener-
ate and consider additional options, and this almost always
improves the quality of the decision.

9 Distinguish facts from opinions. As you consider and discuss
your options, flag assertions or assumptions not supported

American Management Association • www.amanet.org