Canva, the Gospel of Wealth, Hire leaders for what they can do & Shortages
19th September 2021 Evolution Partners Newsletter
“Almost everyone wants to get even with someone who has harmed them. Hardly anyone wants to get even with someone who has helped them” Daymond John
Hope you’re Thriving!
I’ve had a great week with a couple of workshops and many coaching meetings. So let’s jump straight in.
Canva, the most successful Perth founded tech company
Two big wins for my hometown of Perth this week, with Daniel Ricciardo winning the Formula 1 in Italy, and Canva raising at an AUD 55b valuation. Eight years after founding, the company has 60 million users across 190 countries and claims it has annualised revenue of $US700 million.
What’s fantastic about this is that the founders also plan to give away most of their wealth. I’ve written before about The Gospel of Wealth an essay by Andrew Carnegie from 1889 which speaks to the philanthropic obligation of wealthy individuals to contribute to society, an article which has perhaps resulted in more charitable donations than any other to this day. Canva, with a valuation of $55b, has just surpassed another Perth company, FMG’s valuation of $54.8b at the time of writing. Equally impressive, FMG founder Andrew Forrest is planning to give away most of his wealth as well.
If we look at the top companies either founded or centred in Perth, Canva, founded in 2013, has some very impressive peers.
Hire leaders for what they can do, not what they have done
This week, I came across an interesting article that talks about how many employers hire for candidate history instead of potential.
The article discussed The Peter Principle, “In time, every post tends to be occupied by an employee who is incompetent to carry out its duties,” noted Laurence J. Peter, the educator behind this famous work. His theory postulates that most competent people are promoted until they reach a position above their skill level, at which point they cease to grow.
Therefore, considering these two aspects, employers often hire based on history, yet the theory states that every employee plateaus at a level of incompetence.
The article lists three key questions to ask yourself to avoid employing incompetent leaders.
- Does the candidate have the skills to be a high-performing contributor or the skills to be an effective leader?
- Can I really trust this candidate’s individual performance measures?
- Am I looking forward or backward?
Read the HBR article here Hire leaders for what they can do, not what they have done
Why are there now so many shortages
Maybe you’ve seen signs like the one below in store windows apologising for stock shortages. Or perhaps you’ve recently tried to buy a new car and are waiting up to a year for delivery. What’s the cause?
This week I came across an excellent 19-minute video that explains why global shortages are occurring and how Toyota, trying to compete with US car manufacturers eighty years ago, contributed to the origin of today’s crisis.
To combat the US car manufacturers who were batch manufacturing, Toyota implemented the Toyota Production System. That, in turn, led to Just-In-Time manufacturing, where the holding of inventory is viewed as waste, and therefore inventory is considered to be production inefficiency. Reduction of inventory was soon seen as necessary, and all over the world, businesses implemented their own version of lean and Just-In-Time manufacturing. But they didn’t implement it with the same underlying principles that Toyota did; they implemented it their way, losing some of the valuable lessons along the way. And this led to a compounding effect. Today, a coffee shop in Chicago can be out of inventory because a car manufacturer failed to keep sufficient inventory of computer chips.
Watch the fascinating video here Why are there now so many shortages
This week on The Growth Whisperers podcast
Many times we get stuck in what’s called the “Tyranny of the OR”.
We might feel that we can only think binary. For example, to think we can’t pursue profit AND a purpose is an example of “Tyranny of the OR”. Instead, we might think we can pursue a profit AND a purpose.
Another example might be someone saying we can’t grow both customers and margins. It is the genius of the AND when applied to certain circumstances that can make a remarkable difference in your team.
Kevin Lawrence and I explain the Genius of the AND concept, we provide several examples, and explain how you can use the Genius of the AND concept with your team.
Genius of the AND from Jim Collins
Listen to The Growth Whisperers
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