Business lessons from 37 Signals

It wasn’t too long after I settled into my job as VP of Interactive Media at The Californian in Spring 2006 that I found a raw copy of “Getting Real” stuffed into one of the drawers in my new office.

The book’s official title -- “Getting Real: The smarter, faster, easier way to build a successful web application” -- doesn’t begin to describe its real message: Think differently by questioning traditional tendencies to build big, instead of small. Specifically, build lean-and-mean software that focuses on what’s important instead of flashy but rarely used bells and whistles (Think Google Docs instead of Microsoft Word).

It’s been more than five years since the folks at 37 Signals self-published “Getting Real ” (sample the free web version). The book has since has become a revelation in tech circles, and helped 37 Signals become a leading provider of business-productivity software, most notably, Basecamp. “Getting Real” also gave 37 Signals a reputation as a company with sage insight, which has been shared via product lines, blog posts, conference presentations and a podcast.

That’s all led up to Tuesday, when 37 Signals founders Jason Fried and David Heinemeier Hansson will release their second book, called “REWORK.” The video above delivers a mood-setting tone, but the explanatory "REWORK" podcast makes it clear Fried and Heinemeier Hansson firmly believe “REWORK” isn’t your typical business book, more "revolutionary" than evolutionary.

Outspoken entrepreneur Mark Cuban raves, "If given a choice between investing in someone who has read 'REWORK' or has an MBA, I’m investing in 'REWORK' every time. A must read for every entrepreneur."

Here’s a free sample that reinforces that point:

Planning is guessing

“Unless you’re a fortune-teller, long-term business planning is a fantasy. There are just too many factors that are out of your hands: market conditions, competitors, customers, the economy, etc. Writing a plan makes you feel in control of things you can’t actually control.

“Why don’t we just call plans what they really are: guesses. Start referring to your business plans as business guesses, your financial plans as financial guesses, and your strategic plans as strategic guesses. Now you can stop worrying about them as much. They just aren’t worth the stress.

“When you turn guesses into plans, you enter a danger zone. Plans let the past drive the future. They put blinders on you.

“This is where we’re going because, well, that’s where we said we were going.” And that’s the problem: Plans are inconsistent with improvisation.

“And you have to be able to improvise. You have to be able to pick up opportunities that come along. Some- times you need to say, “We’re going in a new direction because that’s what makes sense today.”

“The timing of long-range plans is screwed up too. You have the most information when you’re doing something, not before you’ve done it. Yet when do you write a plan? Usually it’s before you’ve even begun. That’s the worst time to make a big decision.”

B-I-N-G-O.

There’s another chapter called “Underdo the Competition” that -- following on the “Getting Real” theme -- suggests scaling back on products features can actually be a market differentiator. They cite the Flip videocamera and single-gear bicycles as examples of creating best sellers by trimming features. Or “Pick a Fight,” where Fried and Heinemeier Hansson encourage, “If you think a competitor sucks, say so. When you do that, you’ll find that others who agree with you will rally to your side.” Think Apple vs. Microsoft and Dunkin Donuts vs. Starbucks.

But Fried and Heinemeier Hansson should heed their own advice when it comes to lean-and-mean editing. It’s clear from the podcast that Fried and Heinemeier Hansson can be a little full of themselves, suggesting “Rework” will stand out in a sea of bloated business books. Yeah, there’s bad product in any industry, but I think there’s been dramatic improvement in the quality, relevance and focus of business books, typified by thought-provoking reads like “What Would Google Do?” “Purple Cow,” "Grown Up Digital,” “Groundswell” and “Outliers.” So, when Fried and Heinemeier Hansson include chapters titled “Fire the Workaholics” and “Meetings are Toxic,” you find yourself asking, “These are new ideas?”

Don’t get me wrong. I like most things about 37 Signals (except for a sorely lacking "sort by date" feature in Basecamp search). I find their advice generally inspiring, and even pull out my copy of “Getting Real” from time to time for inspiration. I start first with the pages tagged with Post-It Notes, but always return to the introductory pages for a refresher on chasing the concept of lean and mean.

I’ll probably find myself buying “REWORK.” But, note to 37 Signals: Don’t forget your roots. You do lean-and-mean and function over form pretty well. But the things that made you great came about because you played the underdog.

Comments

[Logan Molen]

OK, I finally finished "Rework." Not that it was a struggle to get through -- the chapters are short and focused -- but I've just been real busy (no different than anyone else in business these days).

Verdict: "Rework" is loaded with great takeaways for the workplace and lifestyles (I saved 54 highlights on my Kindle version). There are a few eye-rolling chapters and rehashes of other case studies but there's more than enough fresh insight to warrant the price.