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Elon Musk rejected this single misconception to build SpaceX into the world-changing company it is today.
The Tyranny of the Or.
What it is and why to reject it:
The Tyranny of the Or.
What it is and why to reject it:
A trap that many companies fall into is assuming they must make a tradeoff.
That they can do either A or B but not both.
This is what Jim Collins calls the “Tyranny of the OR”.
It's a critical concept to understand if you are an entrepreneur or builder.
That they can do either A or B but not both.
This is what Jim Collins calls the “Tyranny of the OR”.
It's a critical concept to understand if you are an entrepreneur or builder.
Great companies and entrepreneurs are able to avoid this trap.
Instead of choosing between A or B, they figure out a way to have both A AND B.
This is what Collins calls the “Genius of the AND".
Instead of choosing between A or B, they figure out a way to have both A AND B.
This is what Collins calls the “Genius of the AND".
One of the common ways this materializes is the perceived tradeoff between speed and quality.
Most people assume the faster you build, the lower the quality of the product--and vice versa.
The truth is you can build fast AND with high quality, it’s just a lot harder to do.
Most people assume the faster you build, the lower the quality of the product--and vice versa.
The truth is you can build fast AND with high quality, it’s just a lot harder to do.
In fact, this is something that @stripe specifically highlights in their cultural values: 
In the early days of SpaceX, Elon Musk encountered an apparent tradeoff:
Performance of the rockets on one side and cost of the rockets on the other.
He was told by his team that it was impossible to build a rocket with higher performance at a lower cost than existing designs.
Performance of the rockets on one side and cost of the rockets on the other.
He was told by his team that it was impossible to build a rocket with higher performance at a lower cost than existing designs.
But rather than be deterred, he rejected the Tyranny of the Or.
In his mind, this tradeoff--between performance and cost--was a false one.
It was possible to have high performance AND lower cost. It was just harder to achieve.
In his mind, this tradeoff--between performance and cost--was a false one.
It was possible to have high performance AND lower cost. It was just harder to achieve.
Fast forward to today:
SpaceX rockets are capable of extremely high performance and operate with a significantly lower cost per launch than alternatives.
Musk's rejection of the false tradeoff has sparked a wave of innovative thinking and new innovation in the space economy.
SpaceX rockets are capable of extremely high performance and operate with a significantly lower cost per launch than alternatives.
Musk's rejection of the false tradeoff has sparked a wave of innovative thinking and new innovation in the space economy.
Another example comes from a conversation I had with @t_xu in the early days of building @DoorDash.
Conventional wisdom was that they could either give you:
More selection of restaurants but less efficient drivers
OR
Smaller selection of restaurants but more efficient drivers
Conventional wisdom was that they could either give you:
More selection of restaurants but less efficient drivers
OR
Smaller selection of restaurants but more efficient drivers
Tony rejected that false tradeoff--it wasn’t actually true.
He looked for the AND, finding you could keep selection plentiful while ensuring efficiency if you remove the time drivers waste waiting around at the restaurant.
That rejection allowed DoorDash to dominate the market.
He looked for the AND, finding you could keep selection plentiful while ensuring efficiency if you remove the time drivers waste waiting around at the restaurant.
That rejection allowed DoorDash to dominate the market.
So how can you use the Genius of the AND in your daily life?
When someone presents you with a tradeoff, first question the foundation of the tradeoff.
Is this real or simply another example of the Tyranny of the OR?
Instead of focusing on the OR, focus on finding the AND.
When someone presents you with a tradeoff, first question the foundation of the tradeoff.
Is this real or simply another example of the Tyranny of the OR?
Instead of focusing on the OR, focus on finding the AND.
As a founder, you have a unique responsibility to reject the OR in your startup or company.
You set the tone for how the organization handles perceived tradeoffs.
You set the tone for how the organization handles perceived tradeoffs.
When you interview key hires, ask them how they contend with the tradeoff between speed and quality (or another common tradeoff).
If they focus on finding the AND, you’ll know you have a great hire on your hands.
If they focus on finding the AND, you’ll know you have a great hire on your hands.
That's all for today.
If you enjoyed this, follow me @kurtisjlin for more content like it as I share insights and lessons from my journey as a founder.
And remember: always question the foundation of every tradeoff. Reject the OR, embrace the AND.
If you enjoyed this, follow me @kurtisjlin for more content like it as I share insights and lessons from my journey as a founder.
And remember: always question the foundation of every tradeoff. Reject the OR, embrace the AND.
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Sahil Bloom @SahilBloom
·
Jun 25, 2022
Such a good thread.