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- Four forces: Producing / Stabalizing / Innovating / Unifying
- Organization – complex adaptive system
- System Energy Mgmt
- Success = Sum(Integration / Entropy), Integration – eat energy from system, Entropy – drain energy
- Example of Entropy: family in divorce have little extra energy for anything else.
- Company that has high entropy but temporarily get energy from sales – will compound the problem (a bad acquisition / merger)
- Happy high achiever – get more energy from each relationship
- Some entrepreneur feels their business is energy drainer, only wish to sell it later
- Genius zone – what % of entrepreneur’s time in that
- I.e. If someone is creative visionary but bogged down in details -> unhappy
- Four forces: Producing / Stabalizing / Innovating / Unifying
- Four forces in detail:
- Producing = Parts + Shape, verbs: generate / make / transform
- Innovating = Whole + Shape, verbs: create / entrepreneur / invent
- Unifying = Whole + Respond, verbs: integrate / harmonize / coalesce
- Stabalizing = Parts + Respond, verbs: regulate / admin / systemize
- Parts vs. Whole
- Parts – Structured & Short-view
- Whole – Unstructured & Long-view
- Respond vs. Shape
- Respond – Process Oriented & Slower Pace
- Shape – Result Oriented & Faster Pace

- Example Roles & Personalities
- Entrepreneur – PsIu
- CEO
- PSIu (calculated operator – war-time CEO / ruthless execution)
- PsIU (visionary to rally bigger team/market, peace-time CEO / form alliances)
- Implementor – PSiu
- Sales
- Salesperson – Psiu
- Sales Manager – PsiU
- PSiu – accurate contract / scalable sales process
- Client relationship manager – pSiU
- The different personalities are formed by energy management, induced by habits.
- Management is application of force (i.e. productive/stabalizing/innovative/unifying force).
- Apply different management forces under different situations.
- Big P
- Hammer the nails – high motivation tactical
- Interactions:
- OK with S as long as not too much unnecessary barriers
- Like I’s big picture but don’t like need to refocus / change direction
- View U as sycophants, but U can overcome obstacles.

- Big S
- Planning – Efficiency > Efficacy
- Interaction
- Don’t mind producer as long as P follows procedures
- Distrust I, new ideas causes new works/headaches.
- Try to avoid U, because U need emotional energy.

- Big I
- Mad Genius
- Interaction
- View other I as competition, appreciate P to execute their vision but sometimes feels P are boring, dislike S who say no a lot, enjoy U

- Big U
- Team Builder
- Smooth things over + feeling the other side
- On a sales call, P more likely to hear what the client is saying but U can feel what the client is feeling. Build rapport + motivate others.
- Interaction
- Get well with other types, but for other Big U compete for political power.

- Traditionally, Men more likely PsIu while women more likely pSiU
- Business partner
- Apple: Steve Jobs (PsIu) + Tim Cook (PSiU)
- Forms of energy for a business
- Money – stored energy
- Resources – other resources
- Clout – good will / reputation
- Good companies have ways to extract energy effectively (via its own ecosystem/methodology)
- Align capability (unique vs. general) to opportunity (growing vs shrinking)
- Match growing opportunity with unique capability
- Product Life Cycle
- Four Phases – 1. Pilot, 2. Nail, 3. Scale, 4. Milk
- Market Life Cycle
- Crossing the Chasm: 1. Innovators, 2. Early Adopters, 3. Early Majority, 4. Late Majority
- Crossing the Chasm – big diff between stage-2 & stage-3.
- Execution Life Cycle
- Birth – psIu – highly innovative
- Need to be very conscious – cost effective : “just enough” for costs
- Too much spending on early stage is bad
- Making large investments before concept proven / Presupposing demand / arrogant / scaling up too early.
- If too much system too early, will dampen the ability to innovate.
- Pilot – Psiu – get verifiable result for customers
- Symbol to early growth / pilot phase – got the product right & start to make sales (and want to buy “more”).
- What could be done -> What need to be done.
- Move fast!
- Find the PMF!
- Support its early adopter customers, even though there’s no systems yet.
- Invest heavily into infra/systems/staff too heavily before true PMF presuppose demand and wrongly assumes the PMF is perfect. Heavier ships are more difficult to pivot.
- Still cost-conscious.
- Begin to scale to early majority – PSiu
- Scale via System.
- Make sure system not too much bureaucracy / overhead.
- Mission Critical mistakes in this stage:
- Wrong people / Wrong position / Give up too much or not enough control
- 牢记使命,勿忘(entrepreneurial)初心
- Fully scale to early majority – PSIu – avoid commodity trap
- Scale to late majority – PSIU
- Life Cycle Strategy
- Four key metrics: 1. Market Growth Rate, 2. Competition, 3. Pricing Pressure, 4. Net Cash Flow
