Big companies have trouble with innovation. Innovation is about bad ideas, or ideas that look like bad ideas. That's the fundamental thing.
As a company gets big, the information that informs decision-making gets massive. Depending upon the prism through which you view the business, your perspective will vary. If two people are in charge, this variance will cause conflict and delay.
Interpretation
What this quote means
As companies grow, the complexity of information increases, which can lead to conflicts in decision-making based on different perspectives.
In this quote, Ben Horowitz emphasizes the challenges that arise in leadership as organizations expand. He points out that with growth comes an overwhelming amount of information, and when different leaders hold varying viewpoints or 'prisms' through which they interpret this information, it can lead to disagreements and slowed decision-making processes. This highlights the importance of aligning perspectives among leadership to ensure effective functioning and progress within a large company.
Themes
In practice
Example use cases
In a corporate leadership meeting to address internal conflicts on strategy.
More from Ben Horowitz
All quotes →You read these management books that say, 'These are the hard things about running a company.' But those aren't really the hard things. The hard things are when you have to layoff half your company, or you have to fire your best friend. Or you have to figure out a way not to go bankrupt.
Look - this is the terror of being a founder & CEO. It is all your fault. Every decision, every person you hire, every dumb thing you buy or do - ultimately, you're at the end.
Nobody knows how to be a CEO. It's something you have to learn. It's a very lonely job.
As long as people are clear on what they need to do and what's going on, you're very likely to succeed. When nobody is clear, then you're guaranteed to fail.
I emphasize to C.E.O.s, you have to have a story in the minds of the employees. It's hard to memorize objectives, but it's easy to remember a story.
Similar quotes
Women in Washington - and in positions of power anywhere - should be subjected to the same criticisms and held to the same standards as men. That does not include the assumption that any successful woman has attained her position through flattery, feminine wiles, or her ability to provide maternal comfort to a more powerful man.
Here's what management is about: Pick good people and set the right priorities.
As far as the job of President goes, its rewarding and I've given before this group the definition of happiness for the Greeks. I'll define it again: the full use of your powers along lines of excellence. I find, therefore, that the Presidency provides some happiness.
Woman?” She chuckled. “Is that meant to insult me? I would return the slap, if I took you for a man.” Dany met his stare. “I am Daenerys Stormborn of House Targaryen, the Unburnt, Mother of Dragons, khaleesi to Drogo’s riders, and queen of the Seven Kingdoms of Westeros.
As a major economic force worldwide, India and Indian companies have the opportunity to set the standards in Asia in terms of women's right to decent work.
The best leaders are readers of people. They have the intuitive ability to understand others by discerning how they feel and recognizing what they sense.