Learn from this summary why you should give sầu more importance khổng lồ your employees than to lớn profits and what qualities a leader needs to lớn have sầu.
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We all go through difficult times, don’t we? The book “The Hard Thing About Hard Things”, by Ben Horowitz, shows us that these moments exist and how we must face them.
Whether in personal or professional life, it doesn’t matter, we all face challenges that have sầu already made us think about giving up.
However, the big difference between those who succeed và those who fail is to lớn not give sầu up.
Inevitably obstacles will come your way, because it is not only internal issues that interfere in business, but also external factors, such as the economy in the country and the world.
How you handle difficult things depends on you. Keep reading this summary to know more about the author’s experience with that!
About the book “The Hard Thing About Hard Things”
The book “The Hard Thing About Hard Things: Building a Business When There Are No Easy Answers”, written by Ben Horowitz, was released in năm trước by Harper Business.
It presents the author’s own experiences on how lớn overcome difficult times when you are the leader of a company.
Also, he explains why being a CEO is considered one of the most difficult and lonely tasks that exist và gives tips on how khổng lồ persize this function.
About the author Ben Horowitz
Ben Horowitz is an entrepreneur, blogger, investor, và author, as well as founding partner of the venture capital firm Andreessen Horowitz.
Previously, he was co-founder và CEO of the software company Opsware, which was sold for about $1.65 billion.
To whom is this book indicated?
If you are CEO, founder of a business, have sầu the desire to lớn be an entrepreneur, or are interested in understanding how companies achieve success, this work will help you on your journey.
The book “The Hard Thing About Hard Things” deals with the challenges of being an entrepreneur, going through difficult times, without giving up, and always focusing on developing the business despite the adversities.
Main ideas of the book “The Hard Thing About Hard Things”
The highlights of Ben Horowitz’s book are:
You can start a company with high hopes, but have sầu no doubts, you will encounter challenges;Horowitz didn’t fight alone, he enlisted the best minds to solve sầu the problems of his company;Put your people first, then your products, &, finally, your profits;Don’t just convey optimism, be honest about threats lớn the company;Managers must deliver news of layoffs khổng lồ their employees in person, never outsource this task to HR;The founders of successful startups, such as Loudcloud, chia sẻ a quality: they don’t give up.
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Every startup encounters drawbacks. These obstacles can be: flaws in your products, limited resources, the loss of a collaborator... the danh sách is extensive.
The author begins by talking about the obstacles he faced with his company.
Netscape veterans Ben Horowitz and Marc Andreessen founded Loudcloud, a cloud service provider, in 1999, and soon had difficulties.
Seven months after the start of the business, the company registered $10 million in contracts. They were hiring so fast that workers had lớn sit in the halls.
Then came the rupture of the “Internet Bubble” in 2000. Loudcloud needed capital, but it faced great hardships.
After Horowitz introduced a group of possible sponsors, a colleague told him that skeptical investors thought he was going crazy.
Loudcloud raised a total of $1trăng tròn million, but with so many startups collapsing, the company’s reserves fell far short of forecasts.
As the author Ben Horowitz shares in the book “The Hard Thing About Hard Things”, he designed an agreement khổng lồ sell the cloud business to lớn EDS for $63.5 million and remake Loudcloud as a software company built around its intellectual property, Opsware. Investors refused: the price of their shares plummeted to 35 cents before slowly recovering.
After the Herculean labors, Opsware’s software business approached a revenue rate of $150 million, và its shares were sometimes traded at a market capitalization of more than $800 million.
Horowitz decided to lớn offer Opsware, but only for $14 million or more per nội dung, & managed to lớn sell for $14.25 million per cốt truyện, which gave a total of $1.65 billion.
The sale of the company was painful, but the author Ben Horowitz came to lớn consider it the most intelligent movement of his career. As he emphasizes, it was built out of nothing, went bachồng to nothing & still they managed to lớn rebuild it lớn become a valuable franchise.
Overview: Going through difficult times
While he was driving Loudcloud and then Opsware on difficult days, the author Ben Horowitz took strength from the lessons he learned. See more about it in this overview.
Don’t put everything on your shoulders
As CEO, you can’t nói qua everything, but remember that you don’t have khổng lồ bear all the burdens yourself.
Use as many people as possible to attachồng a problem.
Remember that there is always a movement
As it is highlighted in the book “The Hard Thing About Hard Things”, managing a company is like playing chess: when you think you are without moves, think again. You always have sầu a way out.
Play enough và you might be lucky
Things change so fast that you can find the answer you are looking for another day if you can just hang in there.
Overview: Dealing with layoffs
In this overview of the book “The Hard Thing About Hard Things”, we are going to lớn khuyễn mãi giảm giá with an extremely delicate subject: layoffs.
Ben Horowitz’s company has seen three mass layoffs involving 400 employees. Few startups recover from layoffs of this magnitude, because they break the trust of those who stay.
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The author believes that Loudcloud was able to keep its best employees after several layoffs because they dismissed people in the right way.
So if you need khổng lồ cut staff, start layoffs as soon as possible after you decide khổng lồ vì chưng them, as news of a layoff leak can cause additional and even bigger problems.
Get managers to lớn deliver the news to lớn their own people, never outsource it to human resources.
Managers should explain that layoffs result from company failures, not personal failures of employees.
Jyên ổn Barksdale of Three P, Horowitz’s former boss at Netscape, once said that he takes care of people, products, & profits - in that order. If people enjoy working for your company và you take care of them, they will reward you with loyalty & hard work.
If you don’t take care of your employees, the sản phẩm and profits don’t matter.
Overview: Managing your growing business
With the growth, new challenges will arise for the management of your company. This overview will address them.
Minimizing Company Policy
Political behavior can infiltrate a variety of corporate activities, including performance appraisals, compensation, organizational structure, territory, và promotions.
You must reduce political behavior by designing rigorous processes & following them relentlessly.
Make sure everyone understands the process, advises the author Ben Horowitz in the book “The Hard Thing About Hard Things”.
Hiring employees with the right kind of ambition
You should choose employees whose ambition is lớn be part of a winning company.
Promoting a svào culture
Some startups pride themselves on allowing employees to lớn bring pets to lớn work or khổng lồ offer yoga classes. These are advantages, not culture. True culture drives behavior.
Overview: What makes a leader?
The author Ben Horowitz discusses the features và attitudes that a CEO must possess when it comes to running his business & making decisions:
The right kind of ambition: a leader creates an atmosphere of shared ambition và trust, a quality that Bill Campbell exemplified at Intuit và other organizations;The ability lớn achieve sầu the vision: this unique helped Andy Grove sầu gain the confidence of Intel employees by leading them through a brilliant change: moving from the memory business to lớn the microprocessor business.
As CEO, work on all three qualities, even if you are stronger in one or two.
Also, ask three questions khổng lồ evaluate a CEO’s performance:
“Does the CEO know what to lớn do?”;“Can the CEO make the company vì what it knows?”;“Has the CEO achieved the results considering an appropriate phối of objectives?”.
According to the book “The Hard Thing About Hard Things”, knowing what lớn vị involves using strategies và making accurate decisions.
Acting strategically requires courage because you will never have enough time khổng lồ gather all the information you really need.
That is why you must continue khổng lồ acquire knowledge, day by day, of small interactions with customers và employees.
When you need to lớn make a decision, you will be better prepared lớn answer questions such as: “How can our competitors react? What is the financial risk?”.
One of your most difficult decisions is knowing when to lớn sell your company. Consider two questions:
“Are you very new to lớn a potentially large market?”;“Do you have sầu a good chance of being number 1 in this market?”.
If the answer lớn one of these questions is no, you should consider selling.
In the early years of Google, the company received several purchase offers for more than $1 billion. But it was not sold. The answer khổng lồ both questions would have been yes. Google was very new in a market in which it would be number 1.
Today, the company is worth over $132.1 billion.
Overview: Andreessen Horowitz
To conclude the book “The Hard Thing About Hard Things”, the author Ben Horowitz tells the outcome of his trajectory and leaves some advice on business administration.
Going bachồng khổng lồ his example, after selling Opsware, Horowitz joined Andreessen lớn khung a venture capital company that would help technology entrepreneurs.
Besides investing in companies, Andreessen Horowitz advises CEOs on the skills of designing sales organization & management.
The most important lesson Horowitz tries lớn convey lớn entrepreneurs is that running a company is difficult, it is a process with no easy answers:
“The only thing that prepares you lớn run a company is running a company.”
The solutions are in the executive’s instinct, in trust, and this comes from the experience and performance of this vital duty: embrace the fight.
What vì other authors say about it?
The author of “Traction”, Gino Wickman, explores how successful entrepreneurs have sầu an attractive sầu & well-defined vision for their business. Also, they know how to communicate this message to lớn employees. From this, a guideline is created lớn be followed by everyone within the organization, always used to lớn develop solutions and guide strategic actions.
For John C. Maxwell, author of the book “Leadership Gold”, the best leaders are those who know how to lớn listen. Listeners know what’s going on because they are attentive sầu. They learn better than others because they absorb from different places. And good listeners can see other people’s strengths và weaknesses better.
In the book “The Leadership Pipeline”, the authors emphaform size that functional leaders need to lớn manage certain areas that are outside their specialty. Therefore, they need lớn not only try lớn understvà this different work, but also learn to value it.
Okay, but how can I apply this lớn my life?
We have sầu separated some tips for you to start putting all the teachings of the book “The Hard Thing About Hard Things” into lớn practice:
Be honest about the problems and bad news in your company as this will help you in solving problems;Nobody toàn thân wants to lớn fire people, but, if necessary, vày it quickly và fairly;Take care of the people in your company, train them well và build a good human resources structure;Hire people based on their strengths and not their weaknesses;
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