From Stanford Business School’s Kathleen Eisenhardt discusses product development at Google. The real bottleneck was the hiring process and not hiring the top notch computer scientists.
Rules such as looking for eccentric people that like to do strange things. Think Burning Man? Riding a Tricycle. Googlers look for referrals and if you see anything phony or fake on their resume as you want people with integrity.
Developing the rules and figuring out a combination of observing your own data such as partnerships and looking at outside experts. Partly working with outsiders and insiders so you aren’t tunnel visioned.
Certain situations simplicity is better and faster. Complicated data with formulas will over fit that past data and predict a future that is fit to what you were going after.
If there were 3 rules for doing X you are more than likely to remember those 3 rules. So simple rules.
Involve people from below and involve them in testing the data you are observing. Stopping or figuring out how to back off and when to say no or stop or when to sell an investment can be tough as there is no hard and fast rule on the matter.
One of the biggest mistakes in business is staying in something too long she says but she doesn’t know about Bitcoin and Ethereum right? What about Tesla and Alphabet stock?
The moneyball example focuses on getting players with high on base % and it worked great until everyone else in the league figured it out. So changing up the rules and innovating is the most important to success. Remember its never too late to change or pivot.
For more great Stanford University Videos and potentially future Richart Ruddie commentary visit: https://www.youtube.com/watch?v=TfPMHkYaYCo