The Voltage Effect: Transforming Good Ideas into Great Impact

Hello Utah Innovators,

I’ve just closed the final page of my latest read, "The Voltage Effect" by John A. List, and I'm eager to share the insights I've gleaned. An eye-opener recommended by Juliette Tennert , this enlightening book also resonates across the Utah Economic Council.

List, an accomplished economist and renowned University of Chicago professor tackles the concept of scalability - how an idea can grow and maintain its impact. He shares critical questions we must ask ourselves before scaling up an idea, lessons from his experiences with companies like Uber and Lyft, and educational policy experiments. But why should this matter to us, Utah's community of change-makers?

It’s simple: Utah is already a hotbed of innovation, and as we continue to shape this dynamic region, we need to harness the principles of strategic scalability and equally acknowledge when an idea is not destined to scale.

Understanding Scalability

Scalability isn't just about amplifying the reach of a product or service. It extends to policies, initiatives, and values. As we navigate this path, we must ask ourselves some vital questions. Does our idea work, or is it wishful thinking? Does it cater to our audience's needs and wants? Can it grow without its original vital players? Does it maintain its effectiveness when applied to larger settings? And can it cost-effectively scale?

Yet it's just as critical to recognize when scaling is not the solution. Not all ideas are meant for the broader stage. Some shine in a niche, local markets, or target specific groups. Acknowledging this is not a failure but an exercise in strategic understanding and decision-making.

Turning Up the Voltage in Utah

These questions aren't just academic exercises. They're our roadmap as we pursue impactful change in Utah.

1. Experiment Without Fear: Scalability thrives in a culture of bold experimentation, a quality Utahns proudly own. We must remain committed to learning, adapting, and iterating in our quest for impactful solutions.
2. Spend Smartly: Each dollar spent and effort should be maximized for optimal effectiveness. As we scale, we should be mindful of making every ounce count.
3. Nurture a Scalable Culture: Mr. List underlines the importance of building a workplace culture that scales. As we craft solutions for Utah, we must ensure our teams are equally adaptable and dynamic.

We should remember that scalability isn't about universal application. It's about adapting an idea to different contexts while maintaining its core impact. This balance of global reach and local relevance is crucial.

“There are many cases where diseconomies of scale will prohibit an idea from taking off. What's really interesting is that the very innovative and really keen people know it, and they don't choose ideas that have diseconomies of scale, because they know they can't be scaled any larger than some very small Petri-dish setting.”

What’s Next for Utah?

List’s "The Voltage Effect" is a valuable guide for innovators and policy-makers. It teaches us to scale with strategy and discern when scaling is not the right path, and as Utah continues to evolve, we can apply these insights to our work.

Remember, as we light up Utah’s future, understanding scalability - both its power and limitations - is our secret weapon. It can transform good ideas into great ones, make impactful solutions reverberate across the region, and keep us grounded, remembering that not all solutions need to reach the masses to have a profound effect.

What is an idea you would like to scale?

Friends of Salt Lake is all about exploring how to create the best 'doers' and 'gluers', the people who put ideas into action and hold our community together. We'd love you to join us on this journey and explore topics like this.