It is no secret that the business book market is a “red ocean” of competition where it is almost impossible to create a differentiated product. So, when I come across a business book that I know will make a huge impact to organizations, I always try to share what I have learned from the book with others.
David Jenyns book SYSTEMology is one of those books!
For business veterans, SYSTEMology will be a wake up call for what we should have done or still need to do within our business.
For those new to business leadership, SYSTEMology is a great resource that provides the background and the tools necessary to systematize your business. This systematization will decrease workloads while increasing quality, repeatability, and profitability.
Four Levels of Systematization
Jenyns defines four levels of business systematization as:
Reid Hoffman, the co-founder of LinkedIn, knows a thing or two about business success. LinkedIn was founded in 2002 and sold in 2016 for $26B USD. Not a bad rate of return for “only” 14 years of work!
Prior to LinkedIn, Hoffman was involved at Apple, started SocialNet.com, and was an integral part of Paypal’s success and its subsequent sale to Ebay. Hoffman knows business so when he shares some of his husiness secrets, we should all take notes!
Recently, he spoke about 11 components to his success on Timothy Ferriss’ podcast (episode 248). Although he calls them commandments of start up success, they apply equally well to any successful business. I have been able to apply each of these commandments in any business that I have been involved with. Doing these 11 things well will definitely accelerate your business!
I have listed each of the 11 commandments below along with my brief commentary on each point.
Reid Hoffman’s 11 Commandments of Start Up Success
In 1998 Google burst onto the Internet scene and went from $0 market cap to $1 billion in 8 years. This was unheard of growth! A typical Fortune 500 company takes 20 years to achieve that same $1 billion mark.
However, since 1998, the time to grow from $0 to $1 billion market cap has steadily decreased. Facebook did it in five years, Tesla in four years, Uber in two years and Snapchat and Oculus Rift did it in just under two years!
According to the book Exponential Organization (by Salim Ismail, Michael Malone and Yuri van Geest) an “ExO” or Exponential Organization is an organization that display an exponential level of growth.
As you can imagine, any organization that undergoes exponential growth also undergoes exponential change. This change can easily destroy the organization completely or severely impact its growth unless it is handled correctly.