SpinLaunch, CEO Humility, Cognitive Bias Index, The Cost of Mental Health, Celltrion & Miami taxes
14th November 2021 Evolution Partners Newsletter
“A change of perspective is worth 80 IQ points.” – Alan Kay
Hope you’re Thriving!
It’s been a productive week for me, with Strategic Planning workshops and meetings, and the workshop was at the new Ritz Carlton in Perth. The thing is, the architects were trying to be so unique that most of the doors blended into the building walls. And so, walking around trying to navigate the building, many doors looked like walls, and it wasn’t easy to know where you were going. Maybe I’m old fashioned and just like signs and doors.
While those architects thought they were unique in hiding doors, once in a while, something truly unique comes along. I mean completely different, completely out of the blue.
And this week, I came across one of those things.
SpinLaunch is a suborbital accelerator as high as the Statue of Liberty (50 metres high) that “throws” (my word, not theirs) satellites into space.
Yes, you read that right.
No rocket engines, no fuel.
The company has developed a launch system that uses kinetic energy as its primary method to get off the ground – with a vacuum-sealed centrifuge spinning the rocket at several times the speed of sound before releasing.
And this week, they successfully launched the first rocket.
From the article below, “The vacuum chamber holds a rotating arm, which accelerates the projectile to high speed and then, “in less than a millisecond,” releases the vehicle for launch. The suborbital projectile is about 10 feet long, but “goes as fast as the orbital system needs, which is many thousands of miles an hour”.
The success to date for Elon Musk’s company SpaceX is that they have launched 1,737 satellites to date, by reusing rockets. This re-use has given them a massive advantage in cost and speed. Thus they have overtaken industry heavyweights like Boeing or Northrop Grumman to be arguably the industry leader in private spaceflight. But with this new approach, SpinLaunch has potentially an enormous advantage over all private spaceflight companies being able to launch at a fraction of the cost and then reload to start again.
I love this story because it’s a great example of developing a strategy to think differently and build an offering that delivers on a customer’s needs in a completely different manner.
Watch the awesome launch video here
Read an article about the launch here Alternative rocket builder SpinLaunch completes first test flight
The relationship between CEO Humility and Firm Performance
Do humble CEOs create greater firm performance?
According to the Journal of Management, yes, they do. In a paper I came across recently, they found that humble CEO’s are more likely to;
Have more collaborative Top Management Teams
Possess a shared vision
Lower pay disparity between the CEO and Top Management Team
Adopt an ambidextrous strategic orientation leading to higher firm performance
See the paper here Do Humble CEOs Matter? An Examination of CEO Humility and Firm Outcomes
Cognitive Bias Index
In my book Made to Thrive within section 5.4 All decisions on new opportunities are evaluated against documented criteria, I outlined how the world around us is not reality, but our interpretation of reality. Also, what we believe is reality is determined by the thousands of sensory inputs into our brain. The problem is that those inputs could be impacted by external factors such as stress drugs, health, tiredness. And one of the things that could affect our interpretation of reality is cognitive bias.
A cognitive bias is a systematic error in thinking that occurs when people process and interpret information in the world around them. It affects the decisions and judgments they make. Cognitive biases are often a result of your brain’s attempt to simplify information processing.
This week I came across an interesting tool called the Cognitive Bias Index, which lists all Cognitive Biases broken into four sections and 20 sub-sections. All biases are links to learn more about their meaning and how they affect decision making.
Check out the Cognitive Bias Index here
The Cost of Mental Health
How much has COVID-19 impacted mental health? This week, I came across this interesting infographic, demonstrating the enormous effect and how we need to support our teams, families, and one another.
This week I also came across the fantastic story of South Koreas Cellitrion founder.
Seo Jung-Jin needed money to start his company, so he used his organs as collateral to get money from loan sharks and is now the 2nd richest man in South Korea, worth about $10 billion (trailing Samsung’s Chairman).
He had so many organs listed as collateral that he had no others to leverage. The guy would have been chopped up in an alley somewhere if he had not been able to pay back those funds.
Read the story here Seo Jung-jin: Founder who needed loan sharks is now South Korea’s second richest
Miami hoping to remove taxes
Perhaps as unique an idea as SpinLaunch throwing satellites into space is the City of Miami announcing a dividend for citizens because their Bitcoin investment has been so lucrative.
Again you also read that right.
The yield comes from the staking of the city’s own cryptocurrency, MiamiCoin, which was introduced early this year and has already earned over $21 million in the past three months for Miami. Miami Mayor Francis Suarez noted that if you were to annualize that revenue, it would equal roughly one-fifth of Miami’s total annual tax revenue of $400 million.
In the long run, Suarez said the approach could potentially eliminate the need for Miami residents to pay taxes, which would be “revolutionary.”
Read the article here Miami to Give ‘Bitcoin Yield’ From MiamiCoin to Its Citizens
This week on The Growth Whisperers podcast
When setting your strategy there is a big trap that you can fall into. By focussing your strategy to build a bigger business, to chase market share, you may end up with the problem that the larger business isn’t more profitable. In fact, you can chase yourself into the commodity business, with a bigger, larger, busier, and weaker business.
Instead, your business should focus on producing more profit – not market share. Because the job of a leadership team is to develop and execute a strategy that produces a higher return on capital. Or put another way the business produces a higher profit than the industry average. This week Kevin and Brad talk about the importance of a strategy being focused on profit, and not market share.
Why strategy should focus on producing more profit – not market share
Listen to The Growth Whisperers
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