February 1, 2017

Two basic styles of management.

There are two basic styles of management. One is the cautious style of Fortune 500 companies. The other is the rapid-iteration and A/B testing style of entrepreneurs. Trump is bringing the latter style to the office. The markers for this style of management include:

1. Rapid and decisive hiring and firing.

2. Bias toward action.

3. Rapid A/B testing. Release the early beta version and judge reactions. Adjust accordingly.

4. Emphasis on the psychology of success. Entrepreneurial management includes lots of persuasion and bullshit because entrepreneurs have to fake it until they make it. In other words, they have to create demand via persuasion.

Compare that management style to a large company style. Big companies move slowly in both hiring and firing. They get caught in “analysis paralysis” because no one wants to be seen as making a mistake. And they don’t do rapid testing and iteration with consumers. They try to get it right before any customers see the product.

The world is watching Trump trade some “chaos” to get the benefits of entrepreneurial management. It’s fast and messy, but he’s testing in real time. He’s watching protests. He’s watching news coverage. He’s watching social media. And he’s rapidly adjusting as needed. The net effect of Trump’s bias for action in his first week is that he created a presidential brand of being the most action-oriented president of all time. Your first impression will be sticky. If things work out for Trump, you will forget any temporary “chaos” and remember him as the most effective president in history. Success fixes everything. Every entrepreneur knows that.


Source: http://blog.dilbert.com/post/156628357041/is-president-trump-doing-management-wrong

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