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I'm Eric Ries, author of "The Lean Startup" and new book "Incorruptible" – AMA

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Re: I'm Eric Ries, author of "The Lean Startup" and new book "Incorruptible" – AMA

#511
post #366

Earlier quoted context omitted.

I'd be more likely to assume that it's a really great one, where folks like and trust each other enough that they can give each other crap like this and everyone understands and appreciates it, like good friends trash-talking each other on the basketball court. I've thought for years that the way you can tell acquaintances have become friends is if they start insulting each other. Or, as you say, it could be a really…

Considering how many people love telling this story, both within and outside of Costco, I think it's more the former than the latter. One way you can tell is that the COO, who was cursed at in this story, later succeeded Sinegal as the CEO and, in fact, has gone on record defending that hot dog price many times.

I'm curious about how the story ends, did they cut the cost of making the hot dog, continue losing money on it, or give up and raise the price?

Re: I'm Eric Ries, author of "The Lean Startup" and new book "Incorruptible" – AMA

#512
post #495
post #458

Earlier quoted context omitted.

> the claim that something by itself is enough has to explain why most companies are able to be destroyed, even though they have really good leadership I think most of us are happy to believe that most companies simply have bad leadership, that leadership quality really is the axis on which Costco differs from others. If you want us to believe that other (destroyed) companies' leadership is just as good as Costco's,…

Sure, happy to. This is a very common source of confusion, so definitely worth clarifying. We agree that Costco's difference is due to its superior leadership. The question is why has the company been able to maintain this leadership advantage over multiple generations of managers, when other companies have not. In the book, I give dozens of examples of companies that were well-lead and then suddenly destroyed, often…

> ... Costco has a variety of "bad governance" provisions, such as a super-majority (of all shares, not just votes) provision threshold for shareholder votes

Do you believe there's a fundamental tradeoff between structural constraints (i.e. the 'democratic' model, where dispersed shareholders and markets have a voice) vs. insulated leadership (i.e. the 'benevolent dictator' model, where competent leaders are shielded from short-term shareholder pressure)?

Also, thank you for your quick replies.

Somewhat related: https://en.wikipedia.org/wiki/Benevolent_dictatorship

Re: I'm Eric Ries, author of "The Lean Startup" and new book "Incorruptible" – AMA

#513

I think that for example Zuckerberg has built a structure where he is basically irreplaceable. It had to do with A/B shares where, while having a lot less shares, he made sure to have the controlling ones. While this is good while the founder is alive, it sort of begs the question how long will the company that has structure like that run after the founder is gone. I believe it could go to some family foundation that…

> this is good while the founder is alive

Are we still talking about Facebook?

Re: I'm Eric Ries, author of "The Lean Startup" and new book "Incorruptible" – AMA

#514

I haven't read the new book yet, but I'd be interested in your take on Disney's trajectory over the last, say, 2 decades. It seems to have strayed pretty far from Walt's original vision, largely due to the actions of Bob Iger. He took what used to be a company that was fueled by creativity and turned it into a machine that strip mines IP and extracts value. Iger purchased IP (Pixar, Lucasfilm, Marvel, Fox) as a risk…

@eries I have a question at the bottom for you

I happen to think a lot about this exact case. Walt Disney was an innovater who hated to repeat himself. He took enormous leaps of faith multiple times during his career in doing something completely new/different. Snow White: first full length feature film, Disneyland, and then EPCOT. He also hated making sequels on animated movies, he thought of it as a cash grab. That's why sequels like Bambi 2 and Cinderella 2 came decades after his death.

The reason I believe for all this is that founders like this are visionaries that are hard to corrupt. Walt had a strange relationship with money, he didn't long to have a lot of it, yet he knew he needed it to build his extraordinary projects. Ofcourse a founder with no care for money is a recipe for disaster, thus his brother Roy, an accountant often critizing Walt's ideas made the perfect match for the powerful duo that they were.

When Walt died, his vision died with him. The company slowly got handed over to other CEOs like Eisner and Iger. They just see the world very different, they just needed to secure the future of the company and make as much money as possible, sequels started to come out, park prices drastically went up while reinnovation stayed far behind.

We all know that the innovative soul of Disney died with him and that's very sad. But on the bright side, his story can still inspire others to make their magic.

My question to @eries; I studied business in the university of Rotterdam before coming a developer. Our bachelor was a 4 year course with your 'Lean startup method' at it's core. One thing that bothers me a lot in this day and age is the culture of reiterating and 'ship fast'. I look up a lot to Walt and his vision was quite the opposite. He built stuff and had a special eye for quality before releasing anything. He had the nerve to remove parts of a movie where artists had worked 8 months for the sake of the quality of a piece. I feel we live in an age with no sense for quality anymore. We just are to re-iterate as fast as possible and build shitty MVPs to see if there is demand. I get the idea, really.

But honestly, as an industry, at the same the bar for quality is extremely low. And it's in the entire industry from startups to SME to Enterprises. With AI, this trend only seems to become worse, we generate more, but not necessarily better. We are going to be in a time where signal to noise ratio will be incredibly low, and the demand for quality products is going to be up.

I hope it doesn't sound too bitter, but I just long for that old philosophy of quality first. Curious what you think about that!!

Re: I'm Eric Ries, author of "The Lean Startup" and new book "Incorruptible" – AMA

#515
Eric, do you recommend, as you hinted in the book, that half of board seats should be appointed by a workers council? Do you think Six-Sigma is net destructive to a company, and why? Which examples in your book do you recommend readers further research and understand?

I read the book last night. While the topic is important, I was disappointed in the content and format of the book. Scatterbrained. Some of the most important questions get a page of content. Scores of offhand comments and examples that get no serious treatment, sometimes contradictory. The topic would have been better served with less examples.

Re: I'm Eric Ries, author of "The Lean Startup" and new book "Incorruptible" – AMA

#516
post #353

Earlier quoted context omitted.

Your comment made me smile because the book hasn't had a one-star review yet. Maybe you'll get to be the first.

It's not about the reviews on some boomer platform like Amazon/Goodreads. It's about how out of touch this kind of book is. You hit the jackpot in the 2010's and because of that you might get some mainstream press and support from hardcore tech-bros for now but... I think you have no idea how culturally irrelevant (ie. uncool) a book like this is in 2026. This is like an aerobics VHS in the 2000's. You might still ge…

"Noticed how your HN submission is greyed out because of all the downvotes?"

Downvotes mean nothing on HN, alas.

Factual statements are downvoted because some people don't like the facts quoted. And, worse, mods find that okay.

It makes HN a worse place for serious discussion and for finding out the facts about an issue, because what is discussed is driven by lazy, stupid people's sentiments.

Re: I'm Eric Ries, author of "The Lean Startup" and new book "Incorruptible" – AMA

#517
I think what I liked the most about The Lean Startup was how he would reduce experiences into patterns, and then define them. You get a bunch of concrete ideas that look simple enough to add to a checklist. I do think the book dragged a bit toward the end, but I appreciated the humility of the writing.

Incorruptible sounds interesting - I've long thought about how much companies and their output are defined by their social structures. Microslop doesn't produce broken software because they hire stupid or evil people for example.

Re: I'm Eric Ries, author of "The Lean Startup" and new book "Incorruptible" – AMA

#519
post #458
post #161

Earlier quoted context omitted.

I honestly don't understand your comment, so let me try and recapitulate what I think you're saying and what I think I was saying, and then you can tell me where I missed the mark. What I hear you saying is that the original comment simply said that leadership by itself is enough to preserve the Costco ethos. It didn't say anything about size or Wall Street or anything else. Is that right? The reason I responded the…

> the claim that something by itself is enough has to explain why most companies are able to be destroyed, even though they have really good leadership I think most of us are happy to believe that most companies simply have bad leadership, that leadership quality really is the axis on which Costco differs from others. If you want us to believe that other (destroyed) companies' leadership is just as good as Costco's,…

"I think most of us are happy to believe that most companies simply have bad leadership"

I don't believe this for a second.

I don't know if this makes me the minority or not though!

It trivializes forces influencing large public companies.

Yes - there can be good and bad leadership - and bad leadership is just bad.

But good leadership can be totally helpless in a public company.

Not recognizing this is a huge gap.

The other forces that incluence a company:

- Board

- Shareholders (via board)

- Banks. Lots of companies have loans. The banks generally have the companies by the balls and can dictate many things when things go south - either due to leaderhip or just prevailing market winds

As an example of shareholder/board direct and rapid influence: an activist purchases shares. Installs board member. Causes rapid change in one or more aspects of business structure or strategy to support _their_ portfolio strategy (of course aligned with interests of other shareholders).

etc.

Re: I'm Eric Ries, author of "The Lean Startup" and new book "Incorruptible" – AMA

#520
Now, that development and prototyping is way cheaper than before, how would you say an approach to ideas validation change? Which types of hypotheses are better and faster tested using via vibe-coding, and which should still be verified like we used to?
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