Ideas vs Execution, the AI Mindset and the Bureaucrat Mode

Eudaimonic Happiness is the way.

Good morning

In today's edition, among other things:

• Ideas as Multipliers of Execution

• The Al Mindset

• Customer Segmentation 101

• How to Succeed

• Bureaucrat Mode

• The Agent Economy

• How AI Agents Are Driving the Next Wave of Enterprise Automation

Onwards!

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Ideas as Multipliers of Execution

Beginning of the year I made an angel investment (still unannounced, is already successful), and I was asked about by a friend from a VC fund who passed on the same investment at that time. The main reason why the fund passed was that “it’s not an exciting idea, many teams are already building that”. Every time I hear this, very common argument, I’m reminded of an excellent framing of this problem by Derek Sivers: Ideas are just a multiplier of execution. The reason what I invested in that team is that i knew their ability to deliver in their previous (failed) startup. Back to Sivers.

Ideas and execution are presented as a multiplicative relationship:

• Ideas are rated from -1 (awful) to 20 (brilliant)

• Execution is rated from $1 (no execution) to $10,000,000 (brilliant execution)

The value of a business is determined by multiplying these two factors.

Even a brilliant idea ($20) with no execution ($1) is worth only $20. A brilliant idea with brilliant execution could be worth $200,000,000. Mediocre ideas with great execution can be far more valuable than brilliant ideas poorly executed.

Entrepreneurs should focus more on execution capabilities than idea generation, Investors and partners should prioritize a team's ability to execute over their initial idea.

The most brilliant idea is just potential energy. The kinetic force of execution is what makes it work.

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The Al Mindset