T Algorithm

“The ultimate gift, in our digital age, is a CEO who has the storytelling talent to capture the imagination of the markets while surrounding themselves with people who can show incremental progress against that vision each day.”

- Scott Galloway

Introduction:

I read a thought-provoking book called “The Four,” by Scott Galloway. I know a lot of you reading this aspire to build great companies, so I decided to extract the most informative content from the book & dispel it for you guys.  

Real Introduction:

Four companies worldwide have successfully become gargantuan business threats to all other companies in their respective sectors. 

Apple, the epitome of luxury.

Amazon, the e-commerce monopoly.  

Facebook, the user-perpetuated media king.

And Google, the modern-day "god" of knowledge.

 In his book, "The Four," Scott Galloway discusses the inherent advantages & disadvantages of having these companies around. If this post intrigues you, then I’d recommend checking out his book for sure.

He also discusses the "T Algorithm," which is the blueprint for building a company that leaves its mark in history. I decided to summarize it.

Product Differentiation: 

“Product Differentiation” is the first of eight factors. The main idea here is to reinvent the wheel & offer something different compared to what your market is currently stuffing down your ideal prospect's throat. 

Addition is not the only way to achieve differentiation. By paying attention to the negative feedback your competitors are receiving about their product, you can reverse engineer the "perfect product." This will allow you to literally steal your competitor's market share overnight (with proper marketing, of course). 

Visionary capital:

The second pillar is having "Visionary Capital." Through strategic storytelling, founders like Jobs & Bezos can gather unbelievable support & monetary funding from shareholders. Companies that use this strategy can operate with low/ negative margins until they slowly beat out their competitors by reinvesting into the development of the business, delaying the "maturity" phase of the product life cycle. This type of money allows these larger companies to go snorkeling with an additional tank of oxygen while their competitors gasp for breath. 

Global Reach:

The third factor that these companies have is "Global Reach." These companies can reach any market anytime without being bound by technology or resources. This gives them an aura of omnipresence. 

Likability:

Number four is "Likability." These companies are innovative & they understand the importance of hiring & managing individuals who have exceptional interpersonal skills. These skills help with PR and brand building. 

Vertical Integration:

Fifth is a very important but overlooked aspect in most companies: "Vertical Integration." When you're operating at the upper echelons of business, there's no room for miscommunications & errors, which is why these companies invest such a significant amount into the infrastructure necessary to scale without being dependent on outsourcing. Your takeaway: Hire in-house. 

AI & Automation:

The sixth pillar is controversial, but these companies use AI/ Automation to achieve maximum efficiency & throughput in their workflows. AI & Automation are here to stay, and if you don't learn to leverage them, you will get left behind (whether you're a CEO or an employee). 

Hiring & Career Acceleration:

Number seven is "Hiring & Career Acceleration." To recruit top talent straight out of college, your company must tailor its culture to attract desired talent. Without providing benefits & incentives to employees, you won't be able to satisfy your employees, especially new recruits who don't have the loyalty built-in yet. 

Geography:

Last but not least, we have "Geography". To thrive in modern society, you need to be well-positioned. If your HQ & branches are not strategically placed in specific locations, your competitors will take advantage & consume your market share. 

That concludes the "T Algorithm," but multiple other intricacies will determine your company's success, like the characteristics of the founder & executive team.   

Closing:

Hopefully you learned a thing or two. Try applying some of these things to your own businesses & let me know how it goes. Application is key.

CYA later,

J.R.