The Excitement of being Boring

We're often drawn to the exciting, the chaotic, the thrill of the "firefight." When things break, we relish the opportunity to swoop in, solve the problem, and be the hero. But what about the unsung heroes, the ones who meticulously build and maintain systems so that fires rarely ignite? This, my friends, is the often-overlooked beauty of a well-oiled operational machine. While it may seem counterintuitive, striving for "boring" is the best thing that can happen to a business, and especially to a specific function within that business.

This idea was inspired by a tweet from Bhavin Turakhia, founder of Zeta, whose insights I always find valuable. He originally applied this concept to founders, but it resonates deeply within any operational context.

The Crisis Solver vs. The Peace Maintainer

We're naturally drawn to chaos. It's in these moments of crisis that we feel most needed, most valuable. But consider this: the individuals who prevent crises are often less visible than those who solve them. This is the inherent challenge within operations: the "peace maintainers" are often overshadowed by the "crisis solvers."

This brings us to the heart of the matter: How do we build robust processes that function seamlessly, even when disruptions occur? How do we transform our function into a predictable, dare I say, "boring" machine?

There are two distinct stages in this journey:

1. Chaos: This is the initial phase where we're laying the foundation, setting up the operational machinery.

2. Maintenance: Here, we're focused on refining, improving, and running the machinery smoothly, minimizing disruptions.

Chaos: Building the Operational Engine

Setting up a new operational function is akin to launching a startup. The 0-to-1 journey is arduous, requiring individuals deeply committed to the mission. Keith Rabois, who played a pivotal role in scaling eBay, offers invaluable insights into this phase.

The Core Team: Assembling Your "Barrels"

First, you need a highly dedicated core team, excluding the leader. One of the key qualities to seek in these early team members, according to Rabois, is the "barrel" characteristic.

He explains: "Most great people are actually ammunition. But what you need in your company are barrels. And you can only shoot through the unique barrels you have." When you stock your barrels with ammunition, you increase the velocity of the company.

How do you identify a "barrel"?

• Start Small: Begin with a trivial task, a seemingly insignificant responsibility.

• Observe Meticulousness: If someone executes that trivial task with exceptional care and attention to detail, you might have a potential barrel.

• Seek Help-Magnets: If colleagues, even those outside their direct reporting line, frequently approach them for assistance, it's a strong indicator that they're perceived as resourceful and capable.

Consistent demonstration of these traits signals a "barrel" in your midst.

Building the Engine: Lessons from a Cafe

To illustrate the engine-building process, let's turn to a classic example from Andrew Grove's High Output Management. Imagine you're tasked with creating a mini-cafe that serves a single dish: a three-minute soft-boiled egg, buttered toast, and coffee. Your goal is to deliver this breakfast profitably, with all items served simultaneously.

The Challenge of Efficiency: While customers would prefer instant service, that would demand infinite production capacity or a ready-to-serve inventory – both of which erode your profit margins.

The Solution: A System for Predictability: You need a system that delivers breakfast at a scheduled time, with acceptable quality, and at a low cost.

Identifying the Limiting Step: In this breakfast scenario, the egg is your limiting step. It takes the longest to cook, is the most expensive component, and is crucial to the overall dish.

Orchestrating the Process:

1. Use the egg's cooking time as your baseline.

2. Allocate sufficient time for toasting the bread.

3. Determine when to pour the coffee based on the toasting time.

4. Factor in plating time and offset each step accordingly.

Anticipating Breaking Points:

Even in this simplified example, things can go wrong:

• Egg: Not soft-boiled properly.

• Toast: Burnt, or incorrect amount of butter.

• Coffee: Not brewed correctly.

Adding Complexity:

Now, imagine adding layers of complexity:

• Eggs made to order.

• Toast with various topping options (butter, jam, peanut butter).

• Coffee variations (black, filter).

Each layer of complexity necessitates a reassessment of your processes and potential breaking points.

Dealing with Complications:

In reality, you'll encounter unforeseen issues: equipment malfunctions, ingredient shortages, etc. You have a few options:

• Hire Specialists: A chef or barista, but this adds overhead.

• Invest in Capital Equipment: A new pot, toaster, or coffee maker.

• Create an Inventory: Pre-boil eggs and pre-toast bread, but this risks waste.

Your role as the operational leader is to find the most cost-effective way to deliver the best product in the shortest time.

Example: The Continuous Egg-Boiler: Investing in a continuous egg-boiler ensures a constant supply of perfectly cooked eggs. However, it reduces flexibility (you can't customize egg doneness) and introduces a new point of failure (if the boiler malfunctions, you lose a batch of eggs and potentially toast).

The Importance of Inspections:

• Functional Test: Occasionally cracking open an egg to ensure quality. How many eggs do you need to break to make sure?

• In-Process Inspection: Monitoring the water temperature in the egg-boiler. (Always preferable to tests that destroy the product).

• Incoming/Receiving Inspections: Checking for cracked or rotten eggs upon delivery.

Inventory Management: Maintaining a raw material inventory (e.g., eggs) is crucial, but it also ties up capital. You need to strike a balance, considering factors like consumption rate, lead time for replacements, and the potential cost of lost customers due to stockouts.

Value-Based Problem Solving: Detect and address problems at the lowest possible value stage. A rotten egg discovered upon delivery is far less costly than one served to a customer.

Now, replace the cafe with a digital product residing on a customer's mobile device. The principles remain the same, but the "ingredients" and "processes" are now lines of code. The initial builds are likely to have unexpected behaviors, requiring your ops team to be adept at troubleshooting and anticipating customer issues. This reinforces the need for those "barrels" on your team.

Maintenance: The Art of Editing

Once your operational engine is built, the focus shifts to maintenance, and here, the key process is editing.

Keith Rabois emphasizes the importance of editing, a concept he learned at Square: "This is the best metaphor I have ever seen in 14 years of running stuff, of how to think about your job."

Writing vs. Editing:

When working, ask yourself: "Am I writing or am I editing?" As a manager, your primary role is to edit.

Just like an editor with a red pen, you should be constantly:

• Eliminating: Removing unnecessary processes, tasks, and complexities.

• Simplifying: Making things easier to understand and execute.

• Distilling: Reducing the business to its core essence, focusing on the one, two, or three most important things.

Consistency of Voice: Strive for a consistent voice across all aspects of your operation, just like The Economist maintains a unified tone across its articles.

Training for Editing: Over time, your goal is to train your team to recognize and apply these editing principles themselves, reducing your direct involvement.

Resource Allocation: Effective editing involves intelligently scaling resources up or down based on needs.

Empowering Initiative: Encourage your team to propose their own initiatives, fostering a culture of ownership and proactive problem-solving.

Measuring Editing Effectiveness: A good gauge of your editing effectiveness is the amount of "red ink" you use over time. While occasional heavy edits are inevitable, you should see a downward trend in the long run.

The Power of Details: Another crucial book Keith Rabois recommends is The Score Takes Care of Itself by Bill Walsh. The central theme is that meticulous attention to detail leads to overall success.

Walsh's three-page memo on how to answer the phone exemplifies this principle. It might seem excessive, but it underscores the importance of doing everything "exactly the right way."

Even seemingly minor details, like the food you serve in the office, can impact productivity. Unpopular or unhealthy food choices can lead to complaints, gossip, and wasted time, hindering the flow of creative ideas.

The Goal: A Smooth, Predictable Engine

By focusing on the details, removing distractions, and providing the right tools, you create a smooth, predictable operational engine. This "boring" predictability frees you to tackle new challenges and drive further growth. Embrace the boring, for it is the path to operational excellence.

References

High Output Management by Andy Grove

How I Operate by Keith Rabois