Business Model lean build measure learn approach dealing

Business Model – lean build, measure, learn approach – dealing with risks and failures Do not be afraid to take calculated risks as fear of failure hinders innovation; acknowledge and learn from mistakes Dealing with Risks and Failures (1 of 2) Source: Diamandis, P. and Kotler, S. , "Abundance: The future is better than you think"; Stone, B. , "The Everything Store: Jeff Bezos and the age of Amazon"; Thaler, R. , "Misbehaving: The making of behavioral economics"; Grant, A. , "Originals: How non-conformists rule the world"; Collins, J. and Hansen, M. , "Great by Choice: Uncertainty, chaos, and luck – why some thrive despite them all"; Lencioni, P. , "The Advantage: Why organizational health trumps everything in business"; Schmidt, E. and Rosenberg, J. , "How Google Works"; Bock, L. , "Work Rules!: Insights from inside Google that will transform how you live and lead"; Hendricks, Drew, A Business Owner's Guide to Taking Calculated Risks, Inc. , https: //www. inc. com/ ; Catmull, E. and Wallace, A. , "Creativity Inc. : Overcoming the unseen forces that stand in the way of true inspiration"; Accelerating. Biz analysis © 2017 Accelerating. Biz®. Content use subject to subscriber Terms of Service. 1

Business Model – lean build, measure, learn approach – dealing with risks and failures Do not be afraid to take calculated risks as fear of failure hinders innovation; acknowledge and learn from mistakes (cont. ) Dealing with Risks and Failures (2 of 2) Why you should not fear failure: § § § Fear of failure leads to sticking to norms, inflexibility, and consequently lack of innovation (Creativity, Inc. ) Condemning failure hinders innovation and new ideas (Abundance) Risk and failures may lead to new opportunities to create something new and valuable (The Everything Store) Intolerance of failures causes lack of action and risk aversion (Misbehaving) Failure goes hand in hand with experimentation in driving innovation, an unknown that can only be discovered through trial and error (Baba Shiv, Stanford Graduate School of Business) Take only calculated risks: § Do not gamble, take calculated risks (Originals) § Balance boldness and innovation with calculated risk taking, disciplined in studying empirical evidence and firing bullets before cannonballs (Great by Choice) § Identify risks in business and understand their value without succumbing to analysis paralysis, anticipate mistakes and determine what you can afford to lose (Hendricks, Drew. A Business Owner’s Guide to Taking Calculated Risks) Develop culture that accepts and learns from failures: § Healthy organizations accept, overcome and learn from flaws (The Advantage) § Accept mistakes as part of process, that everyone is responsible for them, and everyone should work together to overcome them (Creativity, Inc. ) § Do not be afraid to confront mistakes and shortcomings, including firing employees or killing product lines (Work Rules!) § Create environment conducive to innovation with high challenging goals, and open to risk and failure (How Google Works) © 2017 Accelerating. Biz®. Content use subject to subscriber Terms of Service. 2