Thursday, June 14, 2007

When Guess Beats Analysis

Tim Berry has a great story of when an entrepreneur met an MBA. An excerpt:

I was a co-founder of Borland International, one of four members of the original board when it was founded. I had been recommended to Philippe as a business plan consultant and he had needed a business plan. We met, we worked together, and things clicked. When he offered to give me stock and asked me to join the board as the company started, I agreed.

That was in 1983. I was 35 years old but I was also a recent MBA, only 2 years out of Stanford. Philippe had far more to teach me about business than I realized. Not that he wasn't schooled -- he had a good degree in math from France -- but he wasn't MBA-schooled. And I, on the other hand, trusted analysis first and intuition later.

So as Philippe guided Borland from start-up to success, we disagreed repeatedly as he chose business strategies that defied schooling and analysis, and, over and over, he was right, and the MBA analysis was wrong. Never have I made so much money while being so often wrong.

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