Launching a Startup or Launching a Rocket? It’s all the same.
As much as I love books I try to read as many a year as possible despite my time constraints. I am always looking for new suggestions and ideas from people in tech, MFG, people, and green industries. A number of VCs and tech SME’s that I am friends with recommended Failure Is Not An Option by Gene Kranz, flight controller for the legendary Apollo 13 space mission. After listening to the audiobook, I see four reasons why the book is so beloved amongst the tech set.
1. The Real Similarities of Launching a Rocket vs a Startup
“Going to the moon was more art than science because they were doing something that had never been done before.”
To boldly go where no man or woman has gone before (shameless Trekkie here) was the mission of the US space program in the 70s and is the exact same mission for all great startups today. Kranz retells stories of many space missions and preparations that faced catastrophic error because they were doing something that had never been done before, but flight control and the astronauts hung in there and found solutions. Startups also face frequent, catastrophic problems because they too are building a business that does not exist, and they too must stay the course even when the course is perilous. Most startups (aside from SpaceX) aren’t launching rockets into orbit, but they should treat their mission just as seriously.
2. Engineers vs Operators (Which One Are You?)
“An engineer can explain how a system should work in theory. An operator has to know what an engineer knows then get the systems to tie together to get the mission accomplished. If the systems break down the operator must make rapid decisions to keep the mission moving.”
In our experience as lenders so far, we’ve learned that there are many great engineers, but not many great operators. It can be easy to lose sight of the difference when you meet a brilliant engineer, but finding an engineer who can be an operator is the true task. Discovering great operators relates directly to the first point — that things can and will go wrong. A great operator is capable of making quick decisions in chaos to move the mission forward. Without a great operator, a business is absolutely doomed to die at the first instance of difficultly.
Great operators are also dedicated to continuous improvement. Kranz writes of constant flight simulations to test not only what to do in emergencies, but to test themselves in stressful situations that require quick decisions and rapid responses. Most startups will put front and center the “fail fast” mantra, which is an evolution of continuous improvement. Failing fast is kind of like live flight simulations, but without the risk of human life. The best operators work on their craft and improve over time from their experiences, most importantly their failures.
3. A Greater Cause (What Is Your Inspiration?)
“It isn’t the quality of your equipment that wins the battles, it’s the quality and determination of the people fighting for the cause they believe.”
Without question, sending a man to the moon for your country is a noble and patriotic mission. The best startups pursue missions beyond just starting a business. Operators need to ask: Why does it matter that my business exists? What would keep people working on it if they didn’t have stock options? Money is a hygiene issue. Every business needs to take care of the money so employees can survive and not worry about basic needs. Every startup needs to offer stock options because every competitor is offering them. Ya get it? Hygiene… Housekeeping…
A greater purpose keeps employees motivated beyond money, but also helps to enforce a specific culture that shapes the decisions of those employees, serves as the basis of how they treat customers, and how they offer products and services. Pursuing a valuable mission that everybody can get behind and evangelize is what makes a startup special.
4. Make Data Useable
“You live or die by the data at your fingertips.”
Data allows operators to make informed decisions, but too much data can confuse and slow decision making (better known as “analysis paralysis”.) Kranz described a binder of the most important things he needed to know for successfully manning flight control. Good operators should do the same: Define what data matters by separating the important indicators and signals from the noise and then have it available in an easy-to-digest format so you can make decisions fast. The importance of usable data is one of the reasons why we believe every company must have an Artificial Intelligence/Machine Learning component in the next decade. Simply put, we are completely inundated with data, and artificial intelligence helps us make sense of it. Using AI/ML to generate insights for managers will be a key tool for the successful businesses of the future.
Kranz says that going to the moon was more art than science because they were doing something that had never been done before. Building an important startup is no different. Doing things that are non-linear and incredibly subject to unexpected outcomes requires the combination of a willingness to see the world differently, the ability to quickly learn from mistakes, and an indomitable will. When the “why” for doing something is important enough, failure is indeed not an option.
Now as an entrepreneur, this is one of those times that you REALLY need to be brutally honest with that person looking back at you in the mirror. Does this describe you?
Reach out to us here at The ZRO Group Ltd and we can help you navigate the way forward. With our resources, expertise, and proven talent, you too can successfully launch that rocket.
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