Daily insights for city builders, delivered every morning at 6 AM ET. I’m Brandon Donnelly — a Toronto-based real estate developer and founder of Globizen. I’ve been writing here since 2013.

Tag: management

  • The “job” of a McDonald’s milkshake

    Management guru Clayton M. Christensen died this week. Sadly, he was only 67 (leukaemia). A professor at Harvard Business School, Christensen was best known for probably two things: His work on disruptive innovation and his teachings on how to live a more fulfilling life. If you’ve read anything on innovation and disruption, I am sure you’ve come across the work of Christensen. He had a way of explaining things by reframing them. Here is a short video about the “job” of a McDonald’s milkshake. And here is another one where he explains the cycle of disruptive innovations, sustaining innovations, and efficiency innovations. Both videos are worth watching.

  • Any decision over no decision

    The Hard Thing About Hard Things is a book that I read a number of years ago (Amazon just told me that I purchased it on March 12, 2014), but that I frequently come back to in my mind. 

    One of my favorite themes in the book can be summed up with this quote: “Often any decision, even the wrong decision, is better than no decision.”

    Decisions can be scary. What if I make the wrong decision and things go horribly wrong? Then things are on me.

    In some organizations, indecision may feel like the safest decision. Let’s do one more study just to make sure that we’ve got this right. 

    But in a startup (which is what Ben Horowitz’s book is about) and in organizations that would actually like to grow, innovate, and accomplish things, indecision can mean death. Without decisions, organizations lock up.

    None of this is to say that bad decisions are okay. Executives must make high quality decisions as fast as possible, and as a rule of thumb you probably want to make more good decisions than bad decisions. 

    But speed, momentum, and organizational clarity also matter a great deal. 

    One of the reasons why I mentally come back to this book is because oftentimes I find that things can get hung up on relatively inconsequential decisions. So I like to remind myself that go is better than stop.

    As Ben points out in his book: “The only mistake you cannot make is running out of cash.” And time has a funny way of burning through cash.

  • The value of saying no

    If you’re somebody who has a lot of ideas, it can be pretty easy to get overwhelmed and/or distracted by all of the possibilities. It’s also worse when you’re an optimist and you believe it can all be done. I am definitely guilty of this. It is one of my weaknesses.

    We all have a finite amount of time to work with and so saying no to the stuff that isn’t core is critical. I believe I am getting better at this, but every now and then I find myself having to do some pruning. And once I do that, boy does it feel great.

    Seth Godin has a fantastic blog post on this topic that I love called, No is essential. Here it is in its entirety (it’s a short post):

    “If you believe that you must keep your promises, overdeliver and treat every commitment as though it’s an opportunity for a transformation, the only way you can do this is to turn down most opportunities.

    No I can’t meet with you, no I can’t sell it to you at this price, no I can’t do this job justice, no I can’t come to your party, no I can’t help you. I’m sorry, but no, I can’t. Not if I want to do the very things that people value my work for.

    No is the foundation that we can build our yes on.”

    To drive the point home even further, let’s shift gears and talk about wine. (For all of you fellow wine drinkers.)

    In viticulture, overall yield – usually measured in hectoliters per hectare of vineyard – is often seen as an important indicator of quality. The idea being that low yields produce better wines because the flavors get concentrated over fewer grapes. 

    Part of what drives this is the leaf to fruit ratio. Too much fruit and not enough leaves, means the grapes won’t ripen properly.

    The parallel to this conversation is that leaves are much like time. There’s only so much of it. And while many of us are constantly trying to maximum yield – I know I am – there are limits to the kind and quality of grapes we can produce when we do that. 

    I know this in principle. And more and more, I know this in practice. I am learning to say no.

    Image from Flickr

  • The Business Blockchain Series

    I just backed this project on Kickstarter.

    https://www.kickstarter.com/projects/wmougayar/the-business-blockchain-books/widget/card.html?v=2

    I haven’t backed a lot of projects on Kickstarter, but I definitely enjoy the process of discovering a project that I’m interested in and then providing a small, seemingly insignificant, sum of money to help make it a reality.

    In this case, it’s a collection of two books by William Mougayar about Bitcoin, blockchains, cryptocurrency, and decentralization.

    These are all topics that I’ve touched on before on this blog, albeit with much less rigor than what I’m sure William will be applying to his books. I wrote this post about 2 years ago, when I first started wrapping my head around Bitcoin. And more recently, I wrote posts about how the blockchain could transform home buying and how Honduras is building a decentralized land registry system using the blockchain technology.

    So while at first glance it may seem like these books having nothing at all to do with city building and real estate, I am betting that they will over the long term, which is why I am doing my homework today.

    Here’s a snippet from William’s Kickstarter page:

    “The fundamental characteristics of blockchains are puzzling to consumers, corporations, governments, policy makers and regulators, because their implementation challenges centrally orchestrated trust, and enables a new kind of trust: one that is distributed, decentralized, from peer to peer, and not centrally managed by any single entity. Take any service, and add “without previous center-based authority”, and replace by “peer to peer, trust-based network”, and you will start to imagine the possibilities.”

    If all of this isn’t enough to pique your interest, then you should also know that William is from Toronto. Great things come out of this city 🙂

  • Throwing butts

    For whatever reason, some of the people living in high-rise buildings believe that if you flick a cigarette butt off a balcony that it will magically disintegrate on the way down. It’s either that or they don’t give a shit about anyone else.

    Because if you happen to live in or manage a building which has patios or terraces at the base of tower, I bet you have this problem:

    image

    Above is a picture of a Belmont cigarette burning through the tarp covering the wooden harvest table on my patio. 

    It’s a destruction of property, an environmental concern (many butts end up in stormwater drains), and a pretty scary fire hazard. I know of many incidences where thrown cigarette butts have started fires in a high-rise building. It happened last year in my mother’s building.

    However, the frustrating thing about this problem is that it’s exceptionally difficult to stop. I know this because I sit on the board of my condo building. The typical response is for management to send out notices to all the residents asking them to stop doing this. But frankly, that does nothing.

    So if any of you know of a company or service (or have a product idea) that can help with this, please contact me. But if no such company or service exists, I am positive that you could create it today and sell to almost every condo corporation and property management company that have a condition where terraces or patios sit below a tower. Because inevitably, there will be someone upstairs throwing butts.

    Many buildings have a similar issue with dog poo. People simply don’t pick up after their dogs. So some property managers have started taking stool samples of every dog who lives in the building. That way they can easily determine which residents aren’t picking up after their dogs. I guess that’s what it takes to get some people to give a shit.

    Of course, this isn’t a problem just in buildings. Cities in general are always fighting litter. That’s why you see ideas like this pop-up:

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    This particular one (in London) was designed to stop people from throwing their cigarette butts on the street. Instead, you use your butt to vote. In this case: England vs. Australia.

    We talk a lot about big ideas here on Architect This City. What driverless cars will mean for cities, how laneway housing could help with housing affordability, and so on. But the smallest ideas can also matter a lot for city building. Sometimes we forget that.

  • But what about integrative thinking?

    After yesterday’s post about speed, price, and quality, a friend of mine from Rotman emailed me and said: but what about integrative thinking?

    When I was doing my MBA at Rotman and Roger Martin was the dean, integrative thinking was a significant part of the curriculum and the messaging for the school. 

    Here’s how Roger explains it:

    Over the past six years, I have interviewed more than 50 such leaders, some for as long as eight hours, and found that most of them share a somewhat unusual trait: They have the predisposition and the capacity to hold in their heads two opposing ideas at once. And then, without panicking or simply settling for one alternative or the other, they’re able to creatively resolve the tension between those two ideas by generating a new one that contains elements of the others but is superior to both. This process of consideration and synthesis can be termed integrative thinking. It is this discipline—not superior strategy or faultless execution—that is a defining characteristic of most exceptional businesses and the people who run them.

    So what my friend was getting at is why – when it comes to speed, price, and quality – do you only get to “pick any two?” Doesn’t that go against the rules of integrative thinking? Isn’t that a failure to look for a more holistic and integrated solution?

    It’s a great point. And it’s a thought that crossed my mind while I was writing yesterday’s post. The fact that “something had to give” made me second guess myself.

    In general, I’m a believer in integrative thinking. I think there are lots of opportunities to create new hybrid solutions and models that are superior to what might exist today.

    But what I was getting at yesterday was perhaps a bit more low level in thinking.

    Let’s say for instance you’re a developer constructing a new building and you and your construction manager are in the process of tendering for curtain wall. You receive 3 bids back and 2 of them are roughly the same, but one them is $5 million cheaper.

    My immediate thoughts would be: Why is that one bid so much lower? Did they bid on the same scope? Are they missing something? Will the curtain wall arrive on-site on time? And if it does, is it going to leak like a sieve?

    I’ll be the first to admit that the construction process is fraught with inefficiencies and ready for integrated solutions. I’m certain that the trade-offs between speed, price, and quality could be better managed.

    But more often than not, a rock bottom price usually means that something did in fact give. After all, great integrative thinking is a pretty rare trait.

  • Speed, price, and quality

    Project-triangle.svg

    Project-triangle” by Cosmocatalano – Own work. Licensed under CC0 via Wikimedia Commons.

    When I was in business school, one of my friends – who runs his own agency – explained to me the Project Triangle and the “pick any two” philosophy. 

    Whether you’re building a building or building a mobile app, projects can be typically broken down in terms of 3 constraints: speed, price, and quality. The “pick any two” philosophy is that – because these dimensions are interrelated – you can only really get 2 of these dimensions at any one time.

    So for example:

    • If you want a project done really quickly and you want it to be high quality, then it’s not going to be cheap. It’s going to be expensive.
    • If you want something done really quickly and you want it at the lowest price possible, then it’s not going to be high quality. It’s going to be low quality.
    • Finally, if you want something high quality and you want it done cheaply, then it’s not going to be done quickly. You might get it done, but it will be deprioritized by whoever is doing it.

    Few things in life are truly black and white, but I really like this framework. It acknowledges the fact that something has to give. It’s unsustainable to think you can always get super fast, high quality work at rock bottom prices.

  • The case for not being mean

    Startup guru Paul Graham writes really interesting essays. Judging by the date stamps on his website, he’s been easily doing it for more than a decade. And he’s gotten really good at it – everyone in the startup community reads them. Whenever he posts one, I know I read it. No question. 

    His most recent essay is called: Mean People Fail. And in it, he argues that the structural changes that have happened in our economy have also meant a reversal in the correlation between “meanness” and success. I know that might sound a bit funny, but hear him out:

    For most of history success meant control of scarce resources. One got that by fighting, whether literally in the case of pastoral nomads driving hunter-gatherers into marginal lands, or metaphorically in the case of Gilded Age financiers contending with one another to assemble railroad monopolies. For most of history, success meant success at zero-sum games. And in most of them meanness was not a handicap but probably an advantage.

    That is changing. Increasingly the games that matter are not zero-sum. Increasingly you win not by fighting to get control of a scarce resource, but by having new ideas and building new things.

    That has always been the case for thinkers, which is why this trend began with them. When you think of successful people from history who weren’t ruthless, you get mathematicians and writers and artists. The exciting thing is that their m.o. seems to be spreading. The games played by intellectuals are leaking into the real world, and this is reversing the historical polarity of the relationship between meanness and success.

    This makes sense to me. But the other reason I find this interesting is because I’ve wondered before if I should be more of an asshole in my professional life. Some people are really good at being assholes. I’m not. It’s not in my nature. When I manage and work with people, I’d rather try and create intrinsic motivation as opposed to using some form of brute force. In my view, the latter burns social capital.

    So if you happen to be of the same mindset, you might like to hear that you’re probably sitting on the right trend line. Don’t be mean.