Updated: May 7, 2021
At Silicon Road, we are big believers in designing systems that scale. It's not just because we think in systems (we do), we have to do this in order to execute our fund strategy.
In order to deliver returns to investors, we intend to invest in 30-40 companies over the course of Fund 1. One of our goals is to invest in up to ten new companies per year for the capital deployment years of our fund. The only way to achieve this result is through durable, repeatable systems.
A system that I use to help both professionally and personally is quite simple, but powerful. It goes like this:
Structure drives behavior, and that behavior drives results. Or, the shorthand:
Structure → Behavior → Results
Too often managers, organizations, spouses, or parents look at results and forget about the process to get there. The end result is often the outcome of a behavior, and that behavior is driven by the structure.
For a fund like Silicon Road, a desired result may be to make 4 new investments over a period of time. In order to achieve that result, there has to be a behavior. Those behaviors may be to find companies, to qualify companies, and to evaluate the deals. Without a structure to source, a framework to qualify, and deal guardrails, it will be very difficult for us to achieve the result of making new investments.
So, as fund managers, we look for ways to structure many of our activities. Here's a sample:
The same structure → behavior → results framework can work for personal life.
Bottom line: in order to achieve repeatable results, consider using the repeatable framework around structure driving behavior that generates results that can be applied across many different scenarios.