OP #249: Going Deeper on Three Business Lessons and Your Data Strategy

Many of you may know that I write a semi-monthly (or sometimes more) newsletter called The Operating Partner. I do not always publish to LinkedIn so you can subscribe to the official letter here. Here are a few excerpts from this week's letter which hit inboxes this morning.

Going Deeper on Three Business Lessons

In OP #247, I wrote that I was giving a talk to senior business-majors at my alma matter, Skidmore College. The title of the talk was 10 Lessons I’ve Learned Along the Way (thus far) and hopefully they could learn from them. The talk went well and I’ve heard from many of them since.

I am still reflecting on two decades post-Skidmore College. Among the myriad of insights, three stand out for their universal applicability and profound impact on professional growth and success.

Firstly, the principle that "passion is your compass, but flexibility is your map" underscores the essence of adaptability in the pursuit of career aspirations. The narrative of transitioning from a Computer Science major to exploring other interests at Skidmore College exemplifies the value of being open to change. I’d also say that never in a million years did I ever think I’d end up working in Private Equity, let alone for almost 8 years. This lesson emphasizes the importance of allowing your core passions to guide you, while remaining agile and responsive to the unexpected opportunities and challenges that emerge. It's a testament to the idea that the most rewarding paths are often the ones not initially envisioned, encouraging professionals to embrace detours as avenues for discovery and growth.

Secondly, the experience with Mozilla highlights the necessity of learning from stumbles without getting mired in setbacks. The ethos of "embrace the bumps as learning experiences" serves as a powerful reminder that setbacks are not terminations, but rather inflection points for reflection, adaptation, and iteration. My time at Mozilla/Firefox was probably my most challenging as an executive but I learned so much because nothing was easy. This mindset fosters resilience and a proactive approach to navigating the inherent uncertainties of the business landscape.

Lastly, the creation of Varick Media Management illuminates the lesson that "knowledge is power, but connections are your support system." The success of this venture, propelled by the collective efforts and support of collaborators like Barry Lowenthal, Joe Zawadzki, Nat Turner, and others, underscores the critical role of building genuine relationships beyond mere networking. This narrative champions the concept that while data and knowledge are indispensable, the human element—fostered through meaningful connections—forms the bedrock of enduring success and innovation.

These lessons, distilled from a variety of experiences around Silicon Alley, offer insights for navigating the complex terrain of business and entrepreneurship. They underscore the importance of adaptability, resilience, and the power of connections—principles that resonate deeply with those at any stage of their professional journey.

Per some comments I got in email from OP #247, I figured I’d go a bit deeper.? Y’all asked.? I hope the above answered and resonated.

AI Doing the Work of 700 Employees

The news cycle certainly paid attention to Klarna?when it said that it’s AI chatbots were doing the work of roughly 700 employees. And they adjusted their staff because of it.

Welcome to the new reality. Assuming AI continues to do what we all expect, we should see similar headlines over the next few years as more companies test and go into full production with their artificially intelligent capabilities.

How do I feel about this? Excited. The naysayers are concerned about employees that may be affected. That’s like saying in 1995, the Internet was going to shut down the postal service, the libraries, and such. Yes, the encyclopedia was demolished, but it did not adapt with the times and we saw more modern versions pop up like Wikipedia.

I’m excited to see organizations leverage their data in value accretive ways. I would be “long” knowledge bots. I would short companies with non-existent data strategies.

We are entering a period where those with readily accessible data across the organization are going to have a leg up. Maybe not even a leg up - maybe the only way to survive.

So what you are doing about your data strategy?

OP Links (Reading Links)

I've done extensive reading this week and I hope you'll enjoy the following links that I've curated. If you come across an article that you believe would be a great addition to future OP letters, don't hesitate to share it with me. However, please note that I retain the discretion to decide on the content that goes into each OP letter.

Elon Musk vs. Everyone: The Fight in AI (WSJ)

The Backwards Hack To Surviving The AI Revolution As an Entrepreneur Isn’t Mastering The New Tech (Rachel Greenberg)

Brave’s AI Assistant Is Launched to All (Techcrunch)

The Rise and Fall of Giants (Rishad Tobaccowala)

More Startups Should Take on the Monopoly (Z-Axis)

Behind Apple’s Doomed Car Project: False Starts and Wrong Turns (NYT)

Vibe Secures Funding To Help SMBs Try CTV (AdExchanger)

Welcome to the Era of BadGPTs (WSJ)

Everything Looks Different from the CEO Seat (Howard Lindzon)

Magnite’s CTV Spend Swelled by 20% in 2023 (AdExchanger)

How Does Leap Day Impact The Economy and Your Workplace Accounting? (Fast Company)

Inside Vince’s Plan to Save $30M Over the Next 3 Years (Glossy)

Price Fixing by Algorithm Is Still Price Fixing (FTC.gov)

HP Is In the Rent a Printer Business Now (The Verge)

Inside the Miracle of Modern Chip Manufacturing (FT)

Reddit: The Internet’s Bellwether (Napkin Math)

I hope you enjoyed reading. The semi-monthly letter is located here if you want to subscribe. Thank you for your attention.