Zombie revenue

One tenant of jobs to be done is that people tend to be not great at articulating the scope of a purchase. For instance, in early June 2021 the lumbar support on my car seat broke. There are no plans to fix it, and this deficit will be some kind of non-zero explanation for when it’s time to get a new car. Will I reason with this later? Unlikely.

JTBD exists in these moments. One moment is when users hack a product. For instance 60 jail broken iPhone features became part of the iPhone. Or even Instagram, lauded for the design choices, drew from teenage boys taking screenshots of solid colors, adding text, and posting as the first polls.

Another according to JTBD father Bob Moesta is zombie revenue. Gym subscribers may make their model work but other businesses can find future fruitful funds in dead accounts. Basecamp, Moesta said, noticed that archived projects were zombie revenues. Customers didn’t need to manage something but they did need to access it and Basecamp created something for them.

Source: Bob Moesta
Full JTBD post.

Incentivizing outcomes or optics?

These circles overlap to some degree in every situation. A minimal overlap situation might be the coder who wears sliders and hoodies and the banker who wears suits and slacks.

Outcome (noun): something which matters, is measured and measurable. Examples: sabermetrics, code, sales.

Optics (noun): something which might matter, however is unmeasured and unmeasurable. Examples: appearance, attention, cultural expectations..

Things which are difficult to measure will be evaluated by optics. In these conditions it’s best to maximize optics.

Things which are easy to measure will be optimized on their measured quantities. In these conditions it’s best to optimize.

Spring 2020 definitions

These definitions are a series.

If you really study it”. (expression) a signal someone hasn’t changed their mind but is willing to capitalize on the current trend.

Assumption (noun): To make a theory into a law. This is not an issue because of Moore’s Law.

Middleman (noun). (1) the person who facilitates a transaction (2) the person screwing you in a transaction (3) the previous person who screwed you in a transaction, not this new innovator, no-sir not this new person, I will NOT ever complain about this new person.

Sludge Audit (verb). Evaluating the red-tapes, hoops, and frictions in a process. I’m going to batch these customer feedbacks and see if there’s a theme, then I’ll conduct a sludge audit to see how our processes can be improved.

Performance architecture (noun). The design of “structures to make better decisions and perform at optimal levels.” The last thing I do each day is write in my decision journal because it’s part of my performance architecture.

Crash (verb). A drastic change in the market with negative effects due to one’s time horizons. The market crash means Bob won’t be able to retire in two years. See also: Correction.

Correction (verb). A drastic change in the market with neutral effects due to one’s time horizons. The market correction means Alice will be buying more Bitcoin and hodling. See also: Crash.

Franchise Fees (noun). Customer acquisition cost. Chipotle for example..

Jason Zweig (unknowingly) turned my attention towards this idea. His book is The Devil’s Financial Dictionary.

Influential Words

Could: a verb used for clicks as in, this <insert news> could have these economics effects on your portfolio.

More: a pronoun used to show relative position, though the original may not be stated, as in, Laura got more for her money at Herr’s.

Deal: a noun used to show relative rather than absolute spending. As in, I got a great deal on my new SUV.

Largest increase or fastest growing: an adverb/verb combination demonstrating increase in a small group. As in, pickleball is America’s fastest growing sport. Antonym: Large N, small p.

The theme here is relativity. People are relative thinkers; see corporate greed or cheating college. Words matter because they frame our approach. Listen closely. Consider the focus. Do the words hint at who was at fault? If this were a movie why is this the script? Need to change how people understand something, or apply some extreme ownership?

Part of the reasons pickleball IS so fast growing is my participation. Thanks too to Tim for a conversation long ago that planted this seed.