Appreciate everyone sharing their favorite reads from 2023
Paying it forward, here are 10 books I really enjoyed reading this year. A mix of books I read for the first time and some re-reads, too.
Hope everyone finds something they might like, and here’s to 2024…
1. I re-read Christensen’s Innovators Solution. The predecessor gets all the hype, but IMHO this one is better
The stuff in here about integration vs modularity should be required reading for every operator and investor
2. McPhee is the OG of long-form non-fiction journalism. He has been a staff writer for the New Yorker since 1965 and is also a Professor of Journalism at Princeton.
The first story here, Atchafalaya, is one of the finest essays I have ever read
3. This was my favorite read of 2023
Guidara co-owned Eleven Madison Park, which has held 3 Michelin stars since 2012, and was ranked first among The World's 50 Best Restaurants in 2017.
Quickly becoming a modern business classic
4. The Looming Tower won the Pulitzer. And for good reason.
It’s the deeply-researched story about the rise of Al-Queda and Islamic Fundamentalism and the story behind 9/11
5. Meehan’s Bartender Manuel is an absolute delight, even if you have never (and don’t plan to) work in a bar.
Full of recipes, beautiful photos, fundamentals, musings and so so much more. Can’t recommend it enough!
6. The best book ever written about the Federal Reserve, probably.
Caro-esque, it is broken into segments which chronicle the high inflation of the 70’s and 80’s, as well as a masterful section on the birth of the Fed
7. @ByrneHobart Tipped me off to this one, and I’m glad he did
It’s a modern classic about how State’s win, solidify, manage, and mis-manage power.
And as Byrne has written, it has many applications to the mega-cap companies that wield tremendous power today
8. America’s story is the story of immigrants - indeed, it is part of my family’s story, too. So perhaps I’m naturally drawn to books like this
I won’t spoil too much, and it’s also more than any summary because it’s a book about many things
9. I’ve been on a journey to expand the cuisines I cookEach year I pick a new one - this year was Middle Eastern.
This is an encyclopedia - it’s massive, there’s even a recipe for Camel’s hump. Haven’t tried that one yet, but I’ve tried many recipes and they’re all excellent
10. Lastly, I loved A Fine Balance. I hope you read this one.
• • •
Missing some Tweet in this thread? You can try to
force a refresh
In normal times, growth businesses are deliberate about expansion. They spend up to a decade building a strong core product w/ sticky user base and go-to-market muscles like sales and customer success
They use their strong core to fund their next oppty
COVID fucked that all up
COVID fucked up things for tech companies in two ways:
1) It created massive demand, alerting competitors to a market opportunity 2) It pulled forward their future. They started eating through their end market. Investors wanted to know - What's next? Tell us. NOW
Some random observations from our implementation of generative AI for scaled customer support
Who knows, maybe people will find it interesting:
1. Ticket deflection opportunity is real:
Pretty immediately AI is able deflect 20% of support queries. It’s pretty shocking when you dig in on a case-by-case basis how many questions are “known” vs “unknown” + bugs
40% deflection seems reasonably attainable
2. Gen AI is automating product development
Every undeflected query is a “gold nugget”. For prod team there are 3 types of nuggets: 1) Feature request 2) Self-service opportunities (requires human assistance today but shouldn’t) 3) Agent actions (do something for me)
Random shit I’m hearing/seeing from tech talent market
- Companies turning up heat via reviews/higher standards. Rise to occasion or leave
- Attrition is down. Managers must fire low performers, replace in open mkt
- Hard to get hired. Thousands of apps per role
- Growth, Eng roles opening up. Ruthless prioritization in Customer Success, Marketing, IT outsource/contract where possible
- Backfills not on autopilot. Must re-justify role
- De-layer your org. Minimize middle management, increase span of control
It’s funny talking to all sides of the job market. Hiring managers, finance, employees, job seekers
Across the board, finally feels like recognition the ZIRP era is over.
RIP Good Times. Businesses gotta make money now. Employees have to drive *quantifiable* impact
(1/8) Good mini thread from @GavinSBaker on why CFO is so important in software. Thought I’d add my thoughts:
At the root of it, software (especially SaaS) is about the financialization of customer cohorts
Here’s what that entails…
(2/8) The first thing to understand about SaaS economics
The cash flow from each customer has a trough - When you add more customers the trough becomes deeper but the velocity out of the trough faster
So there’s an incentive to grow quickly
(3/8) Essentially, you accept massive up-front losses under the assumptions that:
- You’ve modeled your Customer Acquisition Costs correctly
- You know the lifetime value of the customer
- Your building something with product-market fit that can scale to thousands of customers