Hindsight Bias: Focus less on outcomes and more on the process


Most every serial entrepreneur will tell you to focus on the process and discipline (building a great product, iterating collecting customer feedback), not on the outcomes (getting sold, going IPO or raising funding).

Process (or approach) is the methodology to achieve something.

Outcome is the result.

Outcomes are decided by various factors, some within your control and others outside. Luck for example.

Most people outside the startup tend to focus on outcomes. “Wow, you got sold”, “Whoa you raised a lot of money”.

Inside your startup the only thing you need to focus on is the process.

If you have a great outcome, without a great process, it is likely luck and not easily repeatable.

If, however, you have a bad outcome and have a process, you can revisit your process and tweak it to ensure better outcomes.

A strong process is a guarantee — not of outcome or results, but of the highest probability of obtaining desired results.

Barry Ritholtz