Startup Guide, Part 5: Moby Dick - The Theory Of Big Companies
Part 4
- The fountain is on the horizon! - distributed from the mast.
- Where? - asks the captain.
- Three rumba under the wind, sir.
- Left steering! Keep it up!
- There are so keep, sir!
- Hey, watchman! And now you see him?
- Yes, yes, sir! They are there a whole herd of sperm whales! And the fountains are let out, and jump out of the water.
- How do you see - give a vote!
- Yes, sir. Won the fountain! Still - still - one more!
- Is it far?
“Two and a half miles.”
- Thunder and lightning! So close! All hands on deck!"
J. Ross Brown.
"Sketches during whaling sailing", 1846
')
While working on a startup, you will have to deal with large companies. Are you looking for a partnership, the possibility of distribution, investment, whether you want to organize an advertising alliance. From time to time you need to get the approval of a large company. Or the company comes to you with an offer to buy your startup. The most important thing to remember when negotiating with such a company is: you are Captain Ahab , and the big company is Moby Dick .
"And we did not spend two days in swimming, when suddenly one day at dawn
We saw a great many whales and other sea monsters. One of them
possessed truly gigantic dimensions. He approached us, holding his
open mouth, raising waves on the sides and churning the sea in front of him ".
Tuk Translation of "True Stories" by Lucian
When Captain Ahab went in search of Moby Dick, a huge white whale, he had no idea where to look for him, whether the whale would allow him to find himself, whether the whale would decide to attack the ship immediately, or first want to play cat and mouse, or maybe he was just busy its gigantic whale girlfriend. Everything that happened depended only on Moby Dick.
And Captain Ahab could not explain to himself or to anyone else why Moby Dick did this and not otherwise. You are Captain Ahab, and the big company is Moby Dick.
Look at Captain Ahab, youth, and you will see that he has only one leg.
- What do you want to say, sir? Did he lose his second leg because of a whale?
- Because of the whale ?! Come closer, young man; He devoured this leg, chewed up, gnawed the most terrible of the sperm whales who had ever whipped a whaleboat! ABOUT! ABOUT!
Moby dick
Why? Because the behavior of a large company is inexplicable when looking outside. I always laugh when someone says, “Microsoft will do this,” or “Google will do it like this,” or “Yahoo will do this.” I can argue that inside Microsoft, Google or Yahoo, no one knows exactly how Microsoft, Google or Yahoo will behave in a certain situation on a certain occasion.
Maybe the CEO knows if the question is large enough. But you most likely will not communicate with the general director, so it does not matter. The insides of every big company are a very, very complex system consisting of thousands of people, of which hundreds, and sometimes thousands, are executive directors who are confident in their ability to make decisions. On any issue, the company will take a vote of 8, 10, or even 20 people - and sometimes more.
When I worked at IBM in the early 90s, they had a formalized decision-making process called “reconciliation”. On any question concerning any way (even the smallest) of executive directors, a meeting was convened (according to a list of about 50 people), and any of them could veto the decision in question. This is, of course, a rare case, but even in such difficult cases it is incredibly difficult to understand the decision-making process even from inside the company - not to mention looking outside.
"*** And whale breathing often has an extremely strong odor, which can cause brain clouding."
Ulloa "South America"
In a large company, you can count on a host of clashing forces that influence the dynamics of decision-making on any issue. The process of coming to an agreement, compromises, “pay for services”, politics, competition, arguments, mentors, revenge for previous mistakes, territorial wars, engineering opinions, product managers, marketers, salespeople, corporate marketers, financiers, HR, lawyers, channels sales, business development, strategic team, branches in other countries, investors, Wall Street analysts, industry analysts, good press reviews, bad press reviews, unknown articles that are writing right now, customers, plans for the future, not hired sales plans, obstacles to future plans, partners, sales for the last quarter, margin for this quarter, share price, strategic meeting last week, strategic meeting not happened last week, strategic programs, bonus programs, new employees, leaving employees, dismissed employees, promotions, retracts, who is sleeping with whom, to whom the general director went to the party yesterday, the dude who prepares the presentation, accidentally wrote the name of your startup so petty that its e could be seen from the back of ...
It is impossible even to simply list all the factors that will influence the decision of a large company, and even more to understand them - and it is even more foolish to try to influence them.
“On those whales that are bigger, they rarely dare to attack. Other whales are so horrified to them that they are afraid to even utter their names at sea and carry manure, lime, juniper and other objects with their whaleboats to scare them away. ”
Hugo von Troil. "Letters on the voyage of Banks and Soander to Iceland in 1772"
Back to Moby Dick. He can chase you for three months, then jump out of the water and make noise and uproar, then disappear for six months, then go back and stranded your ship, or vice versa - substitute your ass under the harpoon. And you will never know why.
A big company can study you for three months, then offer you an investment, or partnership, or purchase, then disappear for six months, then appear with a competing product that will crush you, or vice versa - buy you and enrich. And you will never know why.
Plus, working with a large company - there is a chance to get a ton of whale meat. Sorry, confused about the metaphors. A good deal with the right company can greatly affect the success of a startup.
"And no matter what else the object may be in the chaos to feed this monster, be
then the beast, the ship or the stone, it instantly disappears into its huge fetid
the throat and perishes in the black abyss of his belly. "
Holland translation "Moralia" Plutarch
A minus in working with a large company: it may overturn you, or crush you, but most likely it will make an uncomfortable deal that will hold back your development, or make you spend a lot of time at meetings and distract from the main goal.
First , do not make startups whose success depends on successful transactions with large companies. Too great a risk of not concluding these deals, regardless of your efforts. And even if the deal is concluded, it will not work the way you expected.
“Taban! Cried the senior captain when, turning,
saw over the very nose of the boat the wide open mouth of the sperm whale threatening
im inevitable doom. “Taban, to whom life is dear!”
"Wharton - Death to the Whales"
Secondly , do not think that the transaction is concluded until the ink is dry and the money does not go to your bank account. There is always the possibility that the deal that seems to be concluded suddenly disappears into clouds of smoke.
At dawn, the sentinel again took posts at the tops of the masts.
- See it? - shouted Ahab, as soon as enough light spilled over the waves.
- Nothing, sir!
Moby dick
Thirdly , be very patient. Big companies all the time play the game "quick - wait." Over the past couple of years, I have talked with one big technology company from the east coast, which has played with me “quick - wait” at least four times. Including the time when I urgently had to fly across the entire country, just for lunch with the second executive director. And as a result, the transaction did not take place. If you want to make a deal with a large company, it will take much longer than you expect.
“For God's sake, Mr. Chace! what happened?"
I replied: "The vessel collided with a whale, and the hull was pierced."
"A description of the death of the whaler" Essex "from Nantucket, who was attacked in the Pacific Ocean by a large sperm whale, was compiled by Owen Chasse of Nantucket. Senior assistant captain on the said vessel. "
New York. 1821
Fourth , beware of bad deals. I have one promising Internet startup from San Francisco, with excellent technologies and great prospects, who concluded two big deals with large companies at the beginning of his activity, as a result of which his wings were cut completely and he had no opportunity to achieve his goal.
Fifth , never expect from a big company any "obvious" actions. What is obvious to you, or to another stranger, is probably not obvious from within the company, after all the factors play a role.
Sixth , keep in mind that big companies are primarily interested in what other big companies are doing now - and then all sorts of startups are there. Hell, they are often even more interested in the actions of other large companies than in the actions of their own clients. Moby Dick was much more interesting than other giant white whales are busy than some little people in a boat.
“And let's say you even managed to whale; imagine how
would you cope with a frisky wild three-year-old with just one rope,
tied to the tail of his tail. "
"Bones and rags." Head of the whaling business
Seventh , if transactions with large companies are a key part of your strategy, hire an experienced professional. Only the best and most experienced whalers had a chance to take Moby Dick. Therefore, corporate sellers and business development managers have such big salaries. They are worth it.
- Oh Ahab! - Starbek cried, - even now, on the third day, it’s not too late to stop. Take a look! Moby Dick is not looking to meet you. It is you, you pursue him in madness!
Moby dick
Eighth , do not fall into obsession. Do not become captain Ahab. Of course, you can communicate with large companies on various topics, but always be ready to leave the dialogue and return to your core business. In a rare startup, a deal with a large company leads to success, or the lack of deals leads to defeat. (Although, take a look at the history of Microsoft and Digital Research around 1981. Here you have a big whale).
And finally:
And the whale dived under the collapsed hull of the vessel and sailed along the quiver shaken; then, turning under the water, again flew to the surface, but on the other hand, in the distance, and, finding himself a few yards from Ahab's boat, for a while stood motionless on the waves.
***
I am sailing right to you, oh all that crush, but not all the beating whale; until the last I fight with you; from the very depths of hell I strike you; in the name of hatred I belch my last breath on you. Let all the coffins and all the hearses drown in one stream! already if none of them get to me, then let me be torn to pieces, still chasing you, though chained to you, oh damn whale! That's how I throw a weapon!
A harpoon whistled through the air; the whale whipped off; The tench ran in the gutter with a flaming speed - and caught. Ahab leaned over to set him free; he freed him; but the sliding loop managed to twist it around the neck; and silently, as the Turks in a serale squeeze their victim with a string, he was carried away from the whaleboat before the team managed to catch up with their captain. A moment later, a fat fire at the free end of the line flew out of the empty tub, knocked down one rower and, lashing along the water, disappeared into the bottomless depths.
Moby dick
Part 6
- The fountain is on the horizon! - distributed from the mast.
- Where? - asks the captain.
- Three rumba under the wind, sir.
- Left steering! Keep it up!
- There are so keep, sir!
- Hey, watchman! And now you see him?
- Yes, yes, sir! They are there a whole herd of sperm whales! And the fountains are let out, and jump out of the water.
- How do you see - give a vote!
- Yes, sir. Won the fountain! Still - still - one more!
- Is it far?
“Two and a half miles.”
- Thunder and lightning! So close! All hands on deck!"
J. Ross Brown.
"Sketches during whaling sailing", 1846
')
While working on a startup, you will have to deal with large companies. Are you looking for a partnership, the possibility of distribution, investment, whether you want to organize an advertising alliance. From time to time you need to get the approval of a large company. Or the company comes to you with an offer to buy your startup. The most important thing to remember when negotiating with such a company is: you are Captain Ahab , and the big company is Moby Dick .
"And we did not spend two days in swimming, when suddenly one day at dawn
We saw a great many whales and other sea monsters. One of them
possessed truly gigantic dimensions. He approached us, holding his
open mouth, raising waves on the sides and churning the sea in front of him ".
Tuk Translation of "True Stories" by Lucian
When Captain Ahab went in search of Moby Dick, a huge white whale, he had no idea where to look for him, whether the whale would allow him to find himself, whether the whale would decide to attack the ship immediately, or first want to play cat and mouse, or maybe he was just busy its gigantic whale girlfriend. Everything that happened depended only on Moby Dick.
And Captain Ahab could not explain to himself or to anyone else why Moby Dick did this and not otherwise. You are Captain Ahab, and the big company is Moby Dick.
Look at Captain Ahab, youth, and you will see that he has only one leg.
- What do you want to say, sir? Did he lose his second leg because of a whale?
- Because of the whale ?! Come closer, young man; He devoured this leg, chewed up, gnawed the most terrible of the sperm whales who had ever whipped a whaleboat! ABOUT! ABOUT!
Moby dick
Why? Because the behavior of a large company is inexplicable when looking outside. I always laugh when someone says, “Microsoft will do this,” or “Google will do it like this,” or “Yahoo will do this.” I can argue that inside Microsoft, Google or Yahoo, no one knows exactly how Microsoft, Google or Yahoo will behave in a certain situation on a certain occasion.
Maybe the CEO knows if the question is large enough. But you most likely will not communicate with the general director, so it does not matter. The insides of every big company are a very, very complex system consisting of thousands of people, of which hundreds, and sometimes thousands, are executive directors who are confident in their ability to make decisions. On any issue, the company will take a vote of 8, 10, or even 20 people - and sometimes more.
When I worked at IBM in the early 90s, they had a formalized decision-making process called “reconciliation”. On any question concerning any way (even the smallest) of executive directors, a meeting was convened (according to a list of about 50 people), and any of them could veto the decision in question. This is, of course, a rare case, but even in such difficult cases it is incredibly difficult to understand the decision-making process even from inside the company - not to mention looking outside.
"*** And whale breathing often has an extremely strong odor, which can cause brain clouding."
Ulloa "South America"
In a large company, you can count on a host of clashing forces that influence the dynamics of decision-making on any issue. The process of coming to an agreement, compromises, “pay for services”, politics, competition, arguments, mentors, revenge for previous mistakes, territorial wars, engineering opinions, product managers, marketers, salespeople, corporate marketers, financiers, HR, lawyers, channels sales, business development, strategic team, branches in other countries, investors, Wall Street analysts, industry analysts, good press reviews, bad press reviews, unknown articles that are writing right now, customers, plans for the future, not hired sales plans, obstacles to future plans, partners, sales for the last quarter, margin for this quarter, share price, strategic meeting last week, strategic meeting not happened last week, strategic programs, bonus programs, new employees, leaving employees, dismissed employees, promotions, retracts, who is sleeping with whom, to whom the general director went to the party yesterday, the dude who prepares the presentation, accidentally wrote the name of your startup so petty that its e could be seen from the back of ...
It is impossible even to simply list all the factors that will influence the decision of a large company, and even more to understand them - and it is even more foolish to try to influence them.
“On those whales that are bigger, they rarely dare to attack. Other whales are so horrified to them that they are afraid to even utter their names at sea and carry manure, lime, juniper and other objects with their whaleboats to scare them away. ”
Hugo von Troil. "Letters on the voyage of Banks and Soander to Iceland in 1772"
Back to Moby Dick. He can chase you for three months, then jump out of the water and make noise and uproar, then disappear for six months, then go back and stranded your ship, or vice versa - substitute your ass under the harpoon. And you will never know why.
A big company can study you for three months, then offer you an investment, or partnership, or purchase, then disappear for six months, then appear with a competing product that will crush you, or vice versa - buy you and enrich. And you will never know why.
Plus, working with a large company - there is a chance to get a ton of whale meat. Sorry, confused about the metaphors. A good deal with the right company can greatly affect the success of a startup.
"And no matter what else the object may be in the chaos to feed this monster, be
then the beast, the ship or the stone, it instantly disappears into its huge fetid
the throat and perishes in the black abyss of his belly. "
Holland translation "Moralia" Plutarch
A minus in working with a large company: it may overturn you, or crush you, but most likely it will make an uncomfortable deal that will hold back your development, or make you spend a lot of time at meetings and distract from the main goal.
So what to do?
First , do not make startups whose success depends on successful transactions with large companies. Too great a risk of not concluding these deals, regardless of your efforts. And even if the deal is concluded, it will not work the way you expected.
“Taban! Cried the senior captain when, turning,
saw over the very nose of the boat the wide open mouth of the sperm whale threatening
im inevitable doom. “Taban, to whom life is dear!”
"Wharton - Death to the Whales"
Secondly , do not think that the transaction is concluded until the ink is dry and the money does not go to your bank account. There is always the possibility that the deal that seems to be concluded suddenly disappears into clouds of smoke.
At dawn, the sentinel again took posts at the tops of the masts.
- See it? - shouted Ahab, as soon as enough light spilled over the waves.
- Nothing, sir!
Moby dick
Thirdly , be very patient. Big companies all the time play the game "quick - wait." Over the past couple of years, I have talked with one big technology company from the east coast, which has played with me “quick - wait” at least four times. Including the time when I urgently had to fly across the entire country, just for lunch with the second executive director. And as a result, the transaction did not take place. If you want to make a deal with a large company, it will take much longer than you expect.
“For God's sake, Mr. Chace! what happened?"
I replied: "The vessel collided with a whale, and the hull was pierced."
"A description of the death of the whaler" Essex "from Nantucket, who was attacked in the Pacific Ocean by a large sperm whale, was compiled by Owen Chasse of Nantucket. Senior assistant captain on the said vessel. "
New York. 1821
Fourth , beware of bad deals. I have one promising Internet startup from San Francisco, with excellent technologies and great prospects, who concluded two big deals with large companies at the beginning of his activity, as a result of which his wings were cut completely and he had no opportunity to achieve his goal.
Fifth , never expect from a big company any "obvious" actions. What is obvious to you, or to another stranger, is probably not obvious from within the company, after all the factors play a role.
Sixth , keep in mind that big companies are primarily interested in what other big companies are doing now - and then all sorts of startups are there. Hell, they are often even more interested in the actions of other large companies than in the actions of their own clients. Moby Dick was much more interesting than other giant white whales are busy than some little people in a boat.
“And let's say you even managed to whale; imagine how
would you cope with a frisky wild three-year-old with just one rope,
tied to the tail of his tail. "
"Bones and rags." Head of the whaling business
Seventh , if transactions with large companies are a key part of your strategy, hire an experienced professional. Only the best and most experienced whalers had a chance to take Moby Dick. Therefore, corporate sellers and business development managers have such big salaries. They are worth it.
- Oh Ahab! - Starbek cried, - even now, on the third day, it’s not too late to stop. Take a look! Moby Dick is not looking to meet you. It is you, you pursue him in madness!
Moby dick
Eighth , do not fall into obsession. Do not become captain Ahab. Of course, you can communicate with large companies on various topics, but always be ready to leave the dialogue and return to your core business. In a rare startup, a deal with a large company leads to success, or the lack of deals leads to defeat. (Although, take a look at the history of Microsoft and Digital Research around 1981. Here you have a big whale).
And finally:
And the whale dived under the collapsed hull of the vessel and sailed along the quiver shaken; then, turning under the water, again flew to the surface, but on the other hand, in the distance, and, finding himself a few yards from Ahab's boat, for a while stood motionless on the waves.
***
I am sailing right to you, oh all that crush, but not all the beating whale; until the last I fight with you; from the very depths of hell I strike you; in the name of hatred I belch my last breath on you. Let all the coffins and all the hearses drown in one stream! already if none of them get to me, then let me be torn to pieces, still chasing you, though chained to you, oh damn whale! That's how I throw a weapon!
A harpoon whistled through the air; the whale whipped off; The tench ran in the gutter with a flaming speed - and caught. Ahab leaned over to set him free; he freed him; but the sliding loop managed to twist it around the neck; and silently, as the Turks in a serale squeeze their victim with a string, he was carried away from the whaleboat before the team managed to catch up with their captain. A moment later, a fat fire at the free end of the line flew out of the empty tub, knocked down one rower and, lashing along the water, disappeared into the bottomless depths.
Moby dick
Part 6
Source: https://habr.com/ru/post/238003/
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