Saturday, May 1, 2010

The Anatomy of Determination

A really awesome note by Paul Graham of YCombinator.


Like all investors, we spend a lot of time trying to learn how to predict which startups will succeed. We probably spend more time thinking about it than most, because we invest the earliest. Prediction is usually all we have to rely on.

We learned quickly that the most important predictor of success is determination. At first we thought it might be intelligence. Everyone likes to believe that's what makes startups succeed. It makes a better story that a company won because its founders were so smart. The PR people and reporters who spread such stories probably believe them themselves. But while it certainly helps to be smart, it's not the deciding factor. There are plenty of people as smart as Bill Gates who achieve nothing.

In most domains, talent is overrated compared to determination—partly because it makes a better story, partly because it gives onlookers an excuse for being lazy, and partly because after a while determination starts to look like talent.

I can't think of any field in which determination is overrated, but the relative importance of determination and talent probably do vary somewhat. Talent probably matters more in types of work that are purer, in the sense that one is solving mostly a single type of problem instead of many different types. I suspect determination would not take you as far in math as it would in, say, organized crime.

I don't mean to suggest by this comparison that types of work that depend more on talent are always more admirable. Most people would agree it's more admirable to be good at math than memorizing long strings of digits, even though the latter depends more on natural ability.

Perhaps one reason people believe startup founders win by being smarter is that intelligence does matter more in technology startups than it used to in earlier types of companies. You probably do need to be a bit smarter to dominate Internet search than you had to be to dominate railroads or hotels or newspapers. And that's probably an ongoing trend. But even in the highest of high tech industries, success still depends more on determination than brains.

If determination is so important, can we isolate its components? Are some more important than others? Are there some you can cultivate?

The simplest form of determination is sheer willfulness. When you want something, you must have it, no matter what.

A good deal of willfulness must be inborn, because it's common to see families where one sibling has much more of it than another. Circumstances can alter it, but at the high end of the scale, nature seems to be more important than nurture. Bad circumstances can break the spirit of a strong-willed person, but I don't think there's much you can do to make a weak-willed person stronger-willed.

Being strong-willed is not enough, however. You also have to be hard on yourself. Someone who was strong-willed but self-indulgent would not be called determined. Determination implies your willfulness is balanced by discipline.

That word balance is a significant one. The more willful you are, the more disciplined you have to be. The stronger your will, the less anyone will be able to argue with you except yourself. And someone has to argue with you, because everyone has base impulses, and if you have more will than discipline you'll just give into them and end up on a local maximum like drug addiction.

We can imagine will and discipline as two fingers squeezing a slippery melon seed. The harder they squeeze, the further the seed flies, but they must both squeeze equally or the seed spins off sideways.

If this is true it has interesting implications, because discipline can be cultivated, and in fact does tend to vary quite a lot in the course of an individual's life. If determination is effectively the product of will and discipline, then you can become more determined by being more disciplined. 

Another consequence of the melon seed model is that the more willful you are, the more dangerous it is to be undisciplined. There seem to be plenty of examples to confirm that. In some very energetic people's lives you see something like wing flutter, where they alternate between doing great work and doing absolutely nothing. Externally this would look a lot like bipolar disorder.

The melon seed model is inaccurate in at least one respect, however: it's static. In fact the dangers of indiscipline increase with temptation. Which means, interestingly, that determination tends to erode itself. If you're sufficiently determined to achieve great things, this will probably increase the number of temptations around you. Unless you become proportionally more disciplined, willfulness will then get the upper hand, and your achievement will revert to the mean.

That's why Julius Caesar thought thin men so dangerous. They weren't tempted by the minor perquisites of power.

The melon seed model implies it's possible to be too disciplined. Is it? I think there probably are people whose willfulness is crushed down by excessive discipline, and who would achieve more if they weren't so hard on themselves. One reason the young sometimes succeed where the old fail is that they don't realize how incompetent they are. This lets them do a kind of deficit spending. When they first start working on something, they overrate their achievements. But that gives them confidence to keep working, and their performance improves. Whereas someone clearer-eyed would see their initial incompetence for what it was, and perhaps be discouraged from continuing.

There's one other major component of determination: ambition. If willfulness and discipline are what get you to your destination, ambition is how you choose it.

I don't know if it's exactly right to say that ambition is a component of determination, but they're not entirely orthogonal. It would seem a misnomer if someone said they were very determined to do something trivially easy.

And fortunately ambition seems to be quite malleable; there's a lot you can do to increase it. Most people don't know how ambitious to be, especially when they're young. They don't know what's hard, or what they're capable of. And this problem is exacerbated by having few peers. Ambitious people are rare, so if everyone is mixed together randomly, as they tend to be early in people's lives, then the ambitious ones won't have many ambitious peers. When you take people like this and put them together with other ambitious people, they bloom like dying plants given water. Probably most ambitious people are starved for the sort of encouragement they'd get from ambitious peers, whatever their age. 

Achievements also tend to increase your ambition. With each step you gain confidence to stretch further next time.

So here in sum is how determination seems to work: it consists of willfulness balanced with discipline, aimed by ambition. And fortunately at least two of these three qualities can be cultivated. You may be able to increase your strength of will somewhat; you can definitely learn self-discipline; and almost everyone is practically malnourished when it comes to ambition.

I feel like I understand determination a bit better now. But only a bit: willfulness, discipline, and ambition are all concepts almost as complicated as determination. 

Note too that determination and talent are not the whole story. There's a third factor in achievement: how much you like the work. If you really love working on something, you don't need determination to drive you; it's what you'd do anyway. But most types of work have aspects one doesn't like, because most types of work consist of doing things for other people, and it's very unlikely that the tasks imposed by their needs will happen to align exactly with what you want to do.

Indeed, if you want to create the most wealth, the way to do it is to focus more on their needs than your interests, and make up the difference with determination.

Sunday, April 25, 2010

Saturday, April 24, 2010

Sarvajal

This is a follow up post to this where I gave a short introduction to Sarvajal.

Sarvajal – the branded name of Piramal Water – means “water for all”It operates on the principle of franchise ownership in rural areas in several states across India and currently uses reverse-osmosis filtration, as per WHO standards. There are several for-profit providers in the clean water space in India, but Sarvajal offers the lowest price point at 25 paise (less than one US cent) per liter, without subsidies. 

Business Model

The company’s efficient business model, based on scalable delivery solutions undertaken by local entrepreneurs, contributes to this attractive price point. After making an initial investment, local operators enter into a profit-sharing scheme with Sarvajal, which in turn covers capital and maintenance costs. Entrepreneurs are therefore incentivized to bring clean water to as many people in the community as possible, instead of focusing on system maintenance. 

As it continues to evolve its model, possible future developments include “ATM-like” water kiosks placed in convenient locations and fully automated refinery systems.

Thursday, April 22, 2010

Earth Day 2010


Earth Day -- April 22 -- each year is a day designed to inspire awareness and appreciation for the Earth's environment.

Earth Day, celebrated in the US on April 22, is a day designed to inspire awareness and appreciation for the Earth's environment. It was founded by U.S. Senator Gaylord Nelson (D-Wisconsin) as an environmental teach-in in 1970 and is celebrated in many countries every year. This date is Spring in the Northern Hemisphere and Autumn in the Southern Hemisphere.


"The earth is in greater peril than ever, but there is also unprecedented opportunity to build a new future. Earth Day has the power to bring about historic advances in climate policy, renewable energy and green jobs and catalyze millions who make personal commitments to sustainability - “A Billion Acts of Green” – mobilizing the power of people to create change by taking small steps in our homes, our schools and our businesses that add up to an enormous collective action."

Visit here for more.

Tuesday, April 20, 2010

Remembering CK Prahalad

Prof. CK Prahalad, amongst the greatest management gurus of the past century and one of the original "bottom of the pyramid" strategists, passed away at the age of 68 last week.



Read this note about him, written by one of his former students (Blair Miller).

The world has experienced a great loss this weekend. Coimbatore Krishnarao (CK) Prahalad, strategy guru,University of Michigan Professor, and mentor to me and many others, passed away last Friday evening.
There are few people who have created a global movement that has changed the way millions of people see the world - and CK Prahalad is one of them.  I first heard about CK through his book, "The Fortune at the Bottom of the Pyramid".  The idealist in me was moved by his words of dignity and a new approach to poverty alleviation and the pragmatist in me was driven by his talk of business models and market opportunity.  I immediately left my job, was accepted to the University of Michigan's Ross School of Business, and moved to Ann Arbor to learn from this remarkable man. I am merely one of thousands, perhaps millions, who were inspired by Professor Prahalad's message.
While CK was one of the world's most respected strategy gurus (ranked #1 in the top 50 global business thinkers) it was clear that his life's mission was to change the way the world thought about poverty.  He believed in the dignity that came with giving the poor a voice and a choice in the decisions they made about their lives.   And most importantly he believed in humility and deep listening.  He once told me that, "when you do your work, go with real humility Blair, for the poor know more about life than you could possibly imagine."
What makes CK so amazing is that he was not walking the halls of the United Nationsor the State Department to address poverty; he was waking up Fortune 500 companies to his vision of social change.  He was attempting to convert the seemingly unconvertible, and he was creating an entirely new paradigm in his wake.
CK created a language (Bottom of the Pyramid, for example) that allowed the business community to talk about social change and simultaneously allowed the social sector to talk about capitalism as a tool to fight injustice.  This contribution alone demonstrates his sheer brilliance in the face of one of the greatest cultural and ideological divisions of our time.
CK's work was always grounded in his deep commitment to education.  Despite his fame and prestige he always continued to teach and to listen.  I will never forget my first day in his class, when he had assigned 100 business school students, with hundreds more waitlisted, to read philosophy.  The typical MBA's were waiting for him to deliver his lecture supplying them with their first framework for innovation and instead he asked us to reexamine our lives and the society in which we lived.   Let's just say that was not the typical assignment for business school, but CK was not a typical man.  He once said to me, "I don't like to think inside the box, I like to create my own box."  And he did just that.
Our final exam for the class was to write a two page essay on where we saw ourselves in five years.  My vision was to be at Acumen Fund, and that vision has become a reality.  It is amazing what happens when someone like him asks you about your dreams and then gives you the confidence and support to realize them. CK Prahalad was not just a guru or an icon he was a teacher and a mentor.
Last year I asked CK to speak at the Acumen Fund Fellows Graduation.  During his presentation he told us, "If there was one thing I could wish for it would be to be young again."  While CK could not have his wish, his voice, vision, and passion now live in those hundred of companies, thousands of social sector organizations, and millions of people around the world who are young enough at heart to hope, to create their own box, and to see the world through a different lens.  These people no longer see the developing world filled with poverty and corruption but instead see these markets filled with opportunity and hope. 
CK, we will carry on your legacy and as you told us we will "work to see the world not for what it is, but what it can be". Thank you, Professor Prahalad; you will be missed.

Tuesday, April 13, 2010

E4SI fellows-2010 announced

The cohort of E4SI Fellows for 2010 has been announced and yeah, I am one of them.

This time there are 17 fellows, 6 from IIT Kharagpur, and four, yeah, four from my hostel itself.

Go through the bios of all the fellows here.

Saturday, April 10, 2010

MAKE US PROUD, TIGER

The Economic Times carried an interesting article about Tiger Woods today.

FIVE MONTHS OF SHAME & SCANDAL, AND THEN 
on the first green after a long layoff, applause and cheers. Woods, battling his tawdry past, did not know how his fans would react to his comeback. But at the first swing, as the ball flew into the skies, his mood too lifted out of the gloomy hole it was in. And as he moved from hole to hole, his fans cheered him on. From despair to joy, a fallen star to a born-again Tiger — you just can’t keep a champion down for too long.

Well, you just cant keep a champion down for too long, can you?