Attention to detail matters

Great executives pay attention to detail. Here are a few examples:

Vic Gundotra, who managed Google+, had a legendary interaction with the late Steve Jobs. In 2008, Steve called Vic on a Sunday while he was in a religious service. Vic didn’t pick up so Steve left a message saying that he had something urgent to discuss. Vic called back and it turned out that Steve was unhappy the second O in the Google logo on the iPhone at the time didn’t have the right yellow gradient. A CEO like Jobs paid attention to the gradient of the second O in the Google logo on a Sunday!

Tim Cook is another example of leaders who pay attention to even small details. When Tim first joined Apple, he held an operations meeting to learn everything he could about the company’s supply chain. Tim probed about the percentage of produced units that passed quality assurance before shipment. When told that the yield was 98%, Tim would ask: how did the other two percent fail? Tim also has a habit of waking up early to review sales data. He once discovered that one model of iPhone was more popular than another model in a small city in Georgia. The difference was due to different promotions run across the state.

Jony Ive was instrumental to the success that Apple had had for the past 20+ years prior to leaving the company in 2019. A great product designer, he was known for perfectionism and a maniacal focus on details. To demonstrate, here is an excerpt from Tripp Mickle book “After Steve” on Jony

IVE’S PERFECTIONISM intensified under Jobs. In 2002, Apple’s leadership agreed to change its laptop cases from titanium to aluminum, a more versatile metal. It tapped a Japanese manufacturer to produce the computer casing, and Ive traveled to Tokyo to evaluate their work with Bart Andre, the product’s design lead, and Nick Forlenza, an engineer who brought designs to life on the factory floor. Ive arranged to meet at the Hotel Okura Tokyo, one of the city’s oldest luxury hotels.

On the day of the meeting, the delegation from Apple and the manufacturer breezed through the hotel’s gold-hued lobby past shin-high tables to a private room. A Japanese executive pulled several aluminum laptop casings out of a manila envelope for Ive to review. The supplier had polished the parts to a shimmering satin silver that reflected the artificial light from the ceiling. Ive hovered over a casing and lifted it toward the light. His hands trembled with panic as his eyes glimpsed small deviations from his design specifications. He abruptly rose and left the group, upset.

Ive held an aluminum sheet above his head and rolled it beneath the overhead lights, showing Forlenza how the reflection revealed almost imperceptible blemishes. He wanted them eliminated. Forlenza explained the problem to the supplier, and when the group returned two weeks later to review the part again, the blemishes were gone.

Ive ratcheted up scrutiny of the supply chain as Apple’s product line expanded. When SARS broke out in 2003, the company was preparing to produce its first desktop made of aluminum, the Power Mac G5. The tower computer was the width and height of a paper grocery bag with smooth aluminum sides framed by front and rear panels that featured tiny holes like those in a citrus zester. Ive wanted to be there as it rolled off the assembly line, so he and members of the operations team flew to Hong Kong on some of the first post-SARS flights. They then headed to Shenzhen, where Ive spent the next forty days sleeping in the factory dormitory and walking the manufacturing floor. He could be intense as he surveyed an assembly line. During the assembly process, he would grab colleagues and point at a factory worker who was crudely handling parts.

“I don’t want him touching our products,” he would say. “Look at how’s he’s touching the side of it!”

Before being appointed to succeed Jeff Bezos and lead Amazon, Andy Jassy was the CEO of AWS, which he helped build from the ground up, and involved in every aspect of the division. He reviewed every press release and had input in branding decisions. He personally spent time picking artists for an AWS event in 2012 as well as took weeks to settle on the name Redshift for the new data analytics product. When there was a major outage at an AWS data center in Virginia, Andy personally got involved to figure out the problem. As it turned out, it was a fluke. While checking in a generator, a technician shut the door and accidentally turned off the generator. To keep employees to a standard that he subscribes to, Andy regularly holds meetings to pick teams, at random, to give a presentation on their business and fires pointed questions. Unprepared teams will be called out.

Toto Wolff is a team principal managing the Formula 1 Mercedes team. Under Toto’s leadership, Mercedes won 8 consecutive constructor titles and 7 driver championships between 2014 and 2021, establishing the dominance unrivaled in a sport as tough as Formula 1. In addition to many great leadership traits, Toto is also a stickler for the smallest of details. On his first trip to the Mercedes team’s headquarters in Brackley, England, Toto noticed a crumpled newspapers and two old paper coffee cups on a table in the lobby. After his meeting with the previous team principal, whom he replaced, Toto brought up his observation and said that it was below the standard of an F1 team to have a lobby like that. In another instance, Toto was upset about how dirty the bathroom in Mercedes’s hospitality area was the first team he visited. He hired a full-time hygiene manager, physically showed the manager how he wanted the bathroom cleaned and ordered the manager to keep the bathroom spotless after every guest on a race weekend.

F1 is a sport of details. Every race, drivers and their engineers analyze telemetry data like below to find out which MINI sectors and corners they lost lap time. Every thousandth of a second can determine a race’s pole and often a race win. Lewis Hamilton, the 7-time world champion, noticed others drivers were wearing fewer cables and as a result having an advantage of probably a few grams. He relayed that feedback to his team so that they could look into doing the same. Back when Lewis was still teammate with Nico Rosberg, Mercedes changed their drivers’ gloves and the way they were sewn so that they could get better race starts.

Source: Reddit

Weekly reading – 30th October 2021

What I wrote last week

My own thoughts and commentary from several companies on App Tracking Transparency

Good reads on business

Intel slipped—and its future now depends on making everyone else’s chips. If the future of Intel depends on making chips for everybody else, then it’s a bleak future. They fall so far behind others, especially TSMC, in this game.

L1 Capital International Fund Q3 Shareholder Letter. It discusses Texas Instruments. So if you are looking for a new idea for your portfolio, it may be an interesting read

Buy Now, Pay Later & Payment Ramifications. If you are looking for a primer on BNPL, this one should do. Follow the author too for payments and fintech content

China is pushing to develop its own chips — but the country can’t do without foreign tech. One thing that I have learned so far is: never underestimate the Chinese. They may be behind in chip design and production, but they have every intention of integrating Taiwan, the hometown of TSMC, into the mainland and they have the will and resources to catch up and surpass the Western world

Mastercard Partners With Bakkt to Bring Cryptocurrency Payments to the Masses. This will definitely increase the usability of Bitcoin in ordinary circumstances. The problem, I think, is who will convince the masses that it’s ok to pay in Bitcoin. The cryptocurrency’s price has gone up by $20,000 in the last 30 days. This fluctuation makes me wonder why I should pay with something that can be 50% more valuable in 30 days.

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Source: Simon Moores

Stuff I find interesting

The Unlikely Outsiders Who Won the Race for a Covid-19 Vaccine. The two companies that helped the world get out of the once-in-a-lifetime pandemic were close to financial ruins. Just think about that for a second. On a side note, while I appreciate the dedication of BionTech’s founder, I wouldn’t want to be as extreme as he is.

Lewis Hamilton’s Plan to Revolutionize Formula 1. “The final report, published in July, confirmed what Hamilton had felt in his bones: Less than 1 percent of people working in Formula 1 are Black. The reasons, laid out across 184 pages, ranged from teams’ hiring practices (which tap the same universities year after year) to major fault lines within British education, as Black students are funneled into the lowest-achieving tracks and expelled at much higher rates. That began to change inside his own garage. Mercedes committed to making sure that 25 percent of new hires come from underrepresented backgrounds. The team, which has raced cars under the nickname Silver Arrows since the 1930s, also made a radical statement in paint. For the first time in its F1 history, the team changed its livery from silver to black last summer. The cars haven’t returned to the old colors. Not only did Hamilton’s latest contract, signed during the 2021 season, include stipulations for increasing diversity within the team—Hamilton also spoke directly with the team’s sponsors asking them to do the same. “Where are you guys at?” he remembers asking the CEO of the Monster energy drink company, which has backed him since 2013. “How are you guys holding yourself accountable? How can we work together?”

Female African Elephants Are Evolving Without Tusks Due to Ivory Poaching. The thing about this trophy hunting that bugs me a lot is that it’s not critical to our survival. We just do it for fun, for ego and because we can. These elephants do us no harm. They just mind their own business and we are the thugs that come in, hurt and kill them for what doesn’t belong to us. Some people say that outrage for trophy hunting is hypocritical because we kill chickens and fish and other animals too. Well, there is a big distinction here. We and our societies have evolved in a way that we look to these animals for protein and survival. I mean we could have been eating grass for dinner too if our ancestors had done it millions of years ago. But here we are through no fault of our own. Why do we commit more sins for absolutely no necessary reasons?

The $3.50 go-anywhere ticket to fight climate change. I am no expert, but I really believe that the U.S has to significantly upgrade its public transportation infrastructure to catch up with other countries and contribute to the climate change fight.

Stats

There were more than 500,000 U.S sellers on Amazon between 1st September 2020 and 31 August 2021. Almost 4,000 sellers surpassed $1 million in sales for the first time

There were 203.7 billion cigarettes sold in the U.S in 2020. A mind-blowing figure

Source: Fox

Weekly reading – 7/17/2021

What I wrote last week

A strong debut weekend of Black Widow highlights Disney’s competitiveness

Business

The Verge did a great comparison of smart trackers from Apple, Samsung and Tile. Tile is really in a bind here. Its products are not substantially better than the others, to the extent that can justify the inferior network of trackers that Apple and Samsung can boast. Unfortunately, that’s the one thing that makes these trackers valuable in the first place

Facebook Users Said No to Tracking. Now Advertisers are Panicking. There seems to be a genuine angst from developers and advertisers over Apps Transparency Tracking (ATT). The thing is that when it comes to tracking, the interests of developers and consumers aren’t necessarily aligned. In that case, Apple has to pick a side and it decided to side with consumers; which is an understandable decision for two reasons: 1/ it’s what Apple has always been about and 2/ Consumers are ultimately their source of income and profit. Sure enough, it’s in Apple’s interest to have a great relationship with developers. But when it comes to the list of top reasons why Apple exists, I don’t think assisting all developers for free is anywhere near the top. The whole situation seems like when oil companies complain about governments’ policies that curb oil extraction in order to protect everyone else.

Inside Facebook’s Data Wars. When you allow misinformation to spread frictionlessly, it’s kinda hard to convince others that you are not an echo chamber of misinformation

Dara Khosrowshahi, Dad of Silicon Valley

Profile of Melanie Perkins, Co-founder and CEO of Canva

What I found interesting

Lewis Hamilton: ‘Everything I’d suppressed came up – I had to speak out’

Is a Graduate Degree Worth the Debt? Check It Here. The debate over whether a university degree is worth the financial investment is very nuanced and it’s not just about the money. However, it’s undeniable that what one can learn from the Internet for much less money increasingly puts in the spotlight the high tuition fees and all the nonsensical charges that schools levy on students

Alcohol Use Linked To Over 740,000 Cancer Cases Last Year, New Study Says

Stats that may interest you

Since 1928, every S&P500’s bull market cycle lasted more than 1,100 days on average while that of a bear market cycle averaged 207 days

Engineers in Japan reached the new record for Internet speed at 319 Terabits per second, two times faster than the previous record

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Source: Supermarketnews