The Game of Business v2.0 - Directi Wiki

Document Sample
The Game of Business v2.0 - Directi Wiki Powered By Docstoc
					                         Intelligent People. Uncommon Ideas.

The Game of Business v2.0

       By, Bhavin Turakhia
   CEO, Directi (
“Simplicity is the ultimate sophistication”
           - Leonardo Da Vinci
Business is like a Game …

  1. Build the best team
  2. Ensure that they make the right decisions
     most of the time
Principle 1 – “Hire the Best”
Hire the Best
Hire the Best

   Can a hundred average high-jump athletes
           beat one Javier Sotomayor?
Hire the Best

   Can a 100 average musicians create what
            one Beethoven created?
Hire the Best

   Excellent Players + Poor Training = SUCCESS

   Poor Players + Excellent Training ≠ SUCCESS

  Excellent Players + Excellent Training = DIRECTI ;)
Hire the Best – The Directi Way

  A “Rockstar” will
  • make 1/3rd the mistakes          COST
  • require ½ the mgmt bandwidth
  • ideate 3x more             VALUE
  • and deliver work 2x faster
  than a average recruit
Hire the Best – The Directi Way
          Cost Comparison Graph

           A “Rockstar” costs 25% lesser

               * Cost of mgmt assumed at 4x employee. 1 Manager manages 10 employees
                                    * Opportunity cost of mistake assumed to be 1x salary
                                               * Cost of a Rockstar assumed to be 25% higher
Hire the Best – The Directi Way
                Value Comparison Graph

                     A “Rockstar” delivers 140% higher value

       * A regular Employee creates value => 3x their salary and value of his/her ideas => 2x salary
Hire the Best

     Hiring “Rockstars” is 4x more profitable!!!
Hire the Best

        What takes lesser time?
  a. Controlling the quality of individuals you hire
  b. Controlling the quality of the work they do 365
  days a year
Hire the Best – The Directi Way

The Directi Way - “Spend extra time in getting the
    right person, so that we can avoid having to
   spend extra time in getting the job done right”
Hire the Best

  Hiring above the MIN
  Hiring above the Mean               Source: Google Lake Wobegone strategy

  “Only hire candidates who are above the mean of
                your current employees”
Hire the Best – The Directi Way

  “Expect to spend about 2x-3x the time in
      sourcing Top Talent as opposed to
           sourcing average talent”
Hire the Best – The Directi Way

           Paranoid about Perfection
           Gets things done
           Out of the box thinker
Hire the Best – The Directi Way

  • Process at Directi
           Don’t hire for a specific Project
           Hire continuously
           Multiple rounds per candidate (3-7)
           Interview rounds are always one-on-one
           Rounds <= 60 min
           There is no MAYBE. Its either Yes or No
           Everyone is IN or the candidate is OUT
           Top Management spends 40% of their time
            on recruitment
        •     I still take every final interview and still draft and finalize
              every interview process
Hire the Best – The Directi Way

  • Directi - Decision making pointers
     Did we learn something from him?
     WOW effect!!
     Exciting Interview? How badly do you want
Hire the Best

   As a Manager expect to spend 30-40% of
    your time in Recruitment and Training
Hire the Best

   “Recruitment is amongst the most valuable
           activity you can focus on”
Hire the Best

  • Other Advantages
       Smart people attract other smart people
       Constant learning and knowledge sharing
       Lesser Management time required
       Compounds the fun
Principle 2 – “Teach them how to play”
Everyone must know how to play

   “All the players must know how to play the

Everyone must know how to play

   “When all the employees understand the
    dynamics of business, everyone can feel,
        think and act like management”
Everyone must know how to play

  “If you COACH you don’t need to MANAGE”
Everyone must know how to play

 • At Directi - Technology is our friend when
    it comes to knowledge sharing
      CR – Wiki
      Mailing lists
      Blogs
      Microblogs
      Custom applications
      …
Everyone must know how to play

 “We are all Teachers, and we are all Students”
Principle 3 – “Define the Long term vision”
Share the Macro Vision

       “All the players are aware of the final
    Win the season? Play for the nationals? Compete in the worldcup?
Principle 4 – “Set Short term Targets and
               Iterate rapidly”
Near/Short term targets

  “Each season is broken into multiple games,
        each independent from the other”
Near/Short term targets
Stop-gap vs Iterative development

  • Safeguard – Ballistic Missile Defense
    System Project
         1969-1975 – 5407 person years
         Hardware / software went through rigorous design phase to
          avoid changes
         Specs were set in stone
         Project was delivered perfectly according to specs at a cost of
          $25 billion

          Operational for 133 days – terminated in 1978

        By the time the 6-yr project was completed, the new
             missiles were faster than the anti-missiles
Goal Setting – The Directi Way

  •   Bi-annual long term planning
  •   Per-team Priority Log
  •   Items added asynchronously by anyone
  •   Monthly / Weekly Iteration meetings
       Allows information seepage
  • Release fast and iterate (every week)
  • Learn constantly and evolve
  • Advantages
         Fewer deviations
         Agile to change
         Reduces wastage
Principle 5 – “Keeping score”
Keep Score

    “The Score is always visible on a public
Keeping Score

 •   Advantages
      Statistics are fun             “Scoring makes the game Exciting”
      Numbers make work
       challenging – give a sense
       of purpose
      Provide a sense of
      Numbers help set targets
      Noone wants to fail a target
       – especially one they have
       set themselves
Keeping Score – The Directi Way
 • Critical Numbers per team
 • Multiple monitors – live reporting
 • LCD screens everywhere
 • Blow up the scoreboards – the bigger the better
 • Measure everything and publish it to everyone
Keeping Score – The Directi Way
Keeping Score – The Directi Way

         Weekly Support Stats of an Individual vs Team
Keeping Score – The Directi Way

      Average ticket handling times by Product and Business Unit
Keeping Score – The Directi Way
           Average phone call handling times
Keeping Score – The Directi Way

              Current Support Monitor
Keeping Score – The Directi Way

              Hourly Support Performance
Keeping Score – The Directi Way
    Sales - Weekly Minute by Minute views, clicks and therefore revenue
Keeping Score – The Directi Way

        Daily Sales chart for a LogicBoxes Product (2 weeks)
Keeping Score – The Directi Way
           Test result scores for trainees in a module
Keeping Score – The Directi Way
         Daily attendance of an individual in the company
Keeping Score – The Directi Way
              Daily attendance of a team
Keeping Score – The Directi Way
           Health of our servers for a set of products
Keeping Score – The Directi Way
              Multi-dimensional Sales report
Keeping Score – The Directi Way
                Recruitment report
Principle 6 – “Maintain a Playbook”
Maintain a Playbook

      “In Sports, the playbook is sacred”
Maintain a Playbook

  “Knowledge sharing can be accomplished
        in 2 ways – Write OR Wrong”

                                                         Impacted   Value
                                     Read it yourself        1       100
                           Email to select Colleagues        5       500
                            Post on team mailing list       10      1000
                                          Post in wiki      20      2000
                              Post in wiki and link it
                                        appropriately      50       5000
Processify, Processify, Processify
Document, Document, Document.
 Automate, Automate, Automate
Maintain a Playbook

              Stats from our internal Wiki

 •   Our knowledgebase is 1,932,735,283 bytes (1.9 billion
     bytes) on disk ~ 3500 books
Principle 7 – “Line of Sight”
Line of Sight

      “Each player can link their actions to
             the outcome of a game”
Line of Sight – The Directi Way
 • Monthly PnL discussions
 • Open Book Management
 • Transparency
 • Keeping Score (Everything is measured)
 • Constant Communication
Principle 8 – “Celebrate your Victories”
Celebrations – The Directi Way
The Game of Business

 • Principle 1 – Hire the Best
 • Principle 2 – Teach them how to play
 • Principle 3 – Share the Long Term Vision
 • Principle 4 – Set Near Term Targets
 • Principle 5 – Keep Score
 • Principle 6 – Maintain a Playbook
 • Principle 7 – Line of Sight
 • Principle 8 – Celebrate your Victories
"A company performs best when its people
 see themselves as partners in the business
  - when they concern themselves not just
 with doing their jobs, but with the business
         objectives of the company"
  “Would you rather be - a Business of
  employees, or a Business of Business-

“Play the Game of Business as you would
  any other Game and build a Business of
             Business people”
                          Intelligent People. Uncommon Ideas.


     Email me:
   Follow me:
  Download Slides:

Shared By: