BiF-4 Insights – Frans Johansson – Author – “Medici Effect”

by Braden Kelley

Spoke briefly about the The Medici Summit.

People at the Harvard Centennial on Monday/Tuesday changed their speeches based on the financial cris, but not here at BiF:

  • We view risks differently
    • Innovators and Entrepreneurs

People adjust behavior to the perceived risk around them:

  • Example of German taxi drivers and the introduction of anti-lock brakes
  • No reduction in accidents despite this safety feature
  • People drive faster, follow closer in response to this safety feature’s introduction

Apple’s $500 million investment in the Newton versus Palm’s spending $7 million on the Palm Pilot:

  • Why did Palm spend so little?
  • Because that is all they had left to spend

We think we can increase success by having (or spending) more money, but we can’t

  • When we have more money, we spend it on trying to reduce the risk
    • Strategy/Planning
    • Researching if anyone else is doing it
      • If they are, maybe we give up (falsely)
        • What about Google? They weren’t the first to do search, other people were doing similar things.

Example of three Harvard Business School graduates not ending up where they planned:

  • One went from a startup to another startup to another startup (none of which succeeded)
  • One went from a startup to a Strategy Consulting Firm
  • One went from a Strategy Consulting Firm to Google to being retired

We can take more chances:

  • Perseverence
  • War option
  • Passion helps us take chances

For more information on the talk, go here.

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