This year marks my eighth year of entrepreneurship. In the early stages, I didn't fully understand business and management, but due to a favorable financing environment at that time, we were relatively easily able to secure some initial funds, which allowed the company to survive and continue exploring. Additionally, I was very fortunate to meet several reliable, wise, and upright partners with whom we have always worked together in unison. They have also taken on increasingly important roles within the company.
As I continuously "pay tuition," reflect, and learn from both internal partners and more experienced individuals outside the company, I have gradually developed my own framework for thinking, making judgments and decisions more rationally and logically; simultaneously, I have also cultivated a sense of reverence for the unknown, maintaining an attitude of setting high goals while having low expectations.
On the plane to Singapore, I listened to Descartes' "Discourse on Method." The four fundamental rules of thought proposed by this philosophical master can be used to organize my entrepreneurial mindset.
In his book, he explains how he gradually formed these four basic principles:
I observed that geometers usually use a long series of very simple inferences to complete the most difficult proofs. These inferences led me to imagine that all things humans can know are connected one after another. As long as we do not accept falsehoods as truths and consistently follow the necessary order of reasoning, there will be nothing so distant that it cannot be reached or so hidden that it cannot be discovered. To decide where to start did not seem too difficult to me, as I already knew that we should start with the simplest and easiest things to understand. Considering that among all scholars who have sought scientific truth throughout history, only mathematicians have been able to find proofs—certain and clear inferences—I decided without hesitation to start with what they study, even though I did not expect any other benefits from it, hoping only that my mind would be trained to love truth and hate falsehood.
Back to the context of entrepreneurship, applying Descartes' four principles, we continuously reflect each principle in our entrepreneurial practices:
The first is: I will never treat anything as true which I do not clearly and distinctly recognize to be so. That is, one must carefully avoid hasty judgments and preconceived notions, and admit into one's judgment only what is presented so clearly and distinctly to the mind that there can be no doubt about it.
This requires us to distinguish between facts, values, and judgments when making decisions. Decisions should be based on facts; although relying on experience and intuition may lead to faster decision-making, it also results in a higher error rate. We can improve the quality of our decisions by using proper thinking tools.
When making important decisions, it is crucial to be aware of one's limitations, hold reverence for the unknown, and choose a good decision-making path.
Understand the problem Put forward all possible options Conduct analysis Question your own preliminary judgment to draw the right conclusions and act accordingly.
The second is: to divide each of the difficulties I examined into as many parts as possible and as may be required in order to resolve them adequately.
How to be a qualified CEO, this is a big question that can be broken down for resolution.
Apply the MECE principle to break down problems, which means decomposing complex problems into simple parts that are mutually exclusive and collectively exhaustive, ensuring that when each part is resolved, the overall problem is also solved. Just as a set of linearly independent functions means that no function can be represented by a linear combination of the others. In this way, when solving a single problem, we can avoid involving other problems and prevent disorder.
For example, one breakdown suggests that for a good CEO, the key is to make effective decisions in three areas: people, capital, and direction. Can these three elements be further subdivided?
People:
Acquisition: Effectively attract more talented individuals. Retention: Identify and retain individuals with potential and contributions, ensuring they remain committed to working for the company. Promotion: Enhance the overall and individual capabilities of the team, including professional skills and comprehensive qualities. Elimination: Promptly identify individuals unsuitable for the team and facilitate their departure.
Funds:
Cash inflow (Cash in): Explore ways to increase or accelerate the inflow of funds. Cash outflow (Cash out): Seek strategies to reduce or defer expenditures.
Direction:
Determine the company's core business and strategic direction. Determine the methods and paths to achieve the goals.
For each of these elements, they need to be further broken down into actionable levels, and solved one by one. In this way, even when facing very complex problems, there will still be a clear plan and an understanding of where to start.
The third rule is: Conduct my thoughts in order, starting from the simplest and easiest objects to recognize, gradually ascending step by step until reaching the most complex object; even for things that originally have no sequence, assign them a certain order.
This principle can be applied to corporate decision-making and development strategies, which means starting from the scope we can handle and understand, and gradually challenging more difficult tasks. If our current ability is 60 points, then we should start with businesses that have a total difficulty of less than 60 points. As our capabilities improve, we will gradually challenge businesses with higher scores. This approach allows us to pursue progress while maintaining a clear understanding of reality, meaning being ambitious yet pragmatic.
At the same time, this also implies that we need to continuously cultivate a growth mindset (growth mindset), constantly enhancing the overall capability of the company and individual thinking abilities. This includes continuously attracting more talented people to join, eliminating those who are not suitable, and providing opportunities for growth and development for existing employees.
Through this step-by-step, easy-to-difficult strategy, we can ensure that the company develops steadily while continuously improving its ability to solve complex problems. On Sunday, I had a call with teacher Liang Ning. She said that products are the monetization of a company's capabilities; only when a company has sufficient capabilities can it create profitable products. Therefore, as the company’s capabilities improve, we can continue to challenge more difficult products and have the opportunity to create a Super App.
The last point is: under any circumstances, we should try to conduct comprehensive investigations as much as possible, review universally, and ensure that nothing is overlooked.
This process requires deep thought and continuous self-criticism. Form a "red team" to question your own views; ask yourself how your virtual board of directors would make decisions; seek out real-world individuals who share your position but possess greater wisdom to explore their differing perspectives.
Because our rationality is limited, the information we possess is incomplete, and we are constrained by time and cost, our level of understanding is also limited. Therefore, even after rigorous logical reasoning and gathering multiple perspectives, our initial judgment may still not be accurate. Continuous review and iteration are needed during implementation.
Moreover, even if the outcome is positive, it does not mean that the thought process at the time was flawless. Successful results also require reflection to explore areas for improvement and identify where there is potential for enhancement.
Finally, during the early stages of my entrepreneurship, I received a lot of feedback from team members. They said I changed quickly, was unstable and unpredictable, and sometimes influenced by emotions. Reflecting on this, I realized I hadn't yet developed a mature methodology for thinking at that time.
My current approach is still just a preliminary framework, and I need to continue refining it through ongoing entrepreneurial practice. I can still retain the strengths of my personality, such as being proactive, optimistic, responsible, having strong execution skills, a willingness to explore, and a readiness to take risks; at the same time, I need to improve my decision-making process and enhance my ability for deep thinking.
Execution, judgment, and luck all influence the quality of the outcome. While I cannot control luck, I can continuously improve the quality of my execution and judgment.
Advance one step each day, and there will be no end.