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Entrepreneurial
   Insanity
Why good is the enemy of the great
The World
                     average




             Below             Above




      Poor                             Great



Bad                                            Excellent
Contribution
                     average




               1
             Below
                                 2
                               Above




       0                                3
      Poor                             Great

-1                                                4
Bad                                            Excellent
Average Contribution = 1.5
              (9 units of work / six people)

                        average




                 1
               Below
                                     2
                                   Above




        0                                      3
       Poor                                Great

 -1                                                   4
 Bad                                               Excellent
Removing bad & poor people
    and replacing with average people
Average Contribution = 2.16 (up 67%)
          (13 units of work / six people)
                     average



             2                   4
          2 Below              2 Above




                                           3
                                         1 Great

                                                   4
                                               1 Excellent
Removing Average people
 and replacing with great & excellent people
Average Contribution = 3.5 (up 233% & 62%)
            (21 units of work / six people)




                                          9
                                        3 Great

                                                  12
                                              3 Excellent
The Bottom Line
                Units produced    Yearly raises   Year end compensation
                                                    (Starting at 100 units)



Average co.
                     9           1 - 2.5%             102.5

   Above
Average co.
                   13
                  (67% gain)
                                 2 - 5%                 105

Excellent co.
                   21            6 - 12%                112
                  (233% gain)

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Work/life balance or blood, sweat and tears: Which is the startup way?

  • 1. Entrepreneurial Insanity Why good is the enemy of the great
  • 2.
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9.
  • 10.
  • 11.
  • 12. The World average Below Above Poor Great Bad Excellent
  • 13. Contribution average 1 Below 2 Above 0 3 Poor Great -1 4 Bad Excellent
  • 14. Average Contribution = 1.5 (9 units of work / six people) average 1 Below 2 Above 0 3 Poor Great -1 4 Bad Excellent
  • 15. Removing bad & poor people and replacing with average people Average Contribution = 2.16 (up 67%) (13 units of work / six people) average 2 4 2 Below 2 Above 3 1 Great 4 1 Excellent
  • 16. Removing Average people and replacing with great & excellent people Average Contribution = 3.5 (up 233% & 62%) (21 units of work / six people) 9 3 Great 12 3 Excellent
  • 17. The Bottom Line Units produced Yearly raises Year end compensation (Starting at 100 units) Average co. 9 1 - 2.5% 102.5 Above Average co. 13 (67% gain) 2 - 5% 105 Excellent co. 21 6 - 12% 112 (233% gain)