David Heinemeier Hansson: Follow Your Instinct

I recently had a conversation on email with REWORK co-author and 37signals partner David Heinemeier Hansson. That will be the subject of one of my columns for BNET.com later this month, but in the meantime here's an extra in the shape of a question I asked David about planning:


Ian: "I know you guys don’t like long-term plans. But you’ve decided to design your business in a certain way. What guided that process – just raw instinct or something more strategic?"


David: "We rely heavily on instinct. An instinct that has been developed and formed from a decade in business. Some times careful analysis is helpful, but often times you're just trying to justify what your instinct is already telling you. Why not follow that straight from the get go."

David Heinemeier Hansson: Planning Can Be Harmful

David Heinemeier Hansson is a partner at Chicago software house 37signals. He’s the co-author of a great book ‘Rework’ which I have mentioned before on this blog because it really resonates with the whole Unplan ethos.

Here’s a great little video (2 mins) called ‘Planning Is Guessing’ taken from David’s presentation at Stanford University’s Entrepreneurial Thought Leader Lecture Series in January this year. David's take on business planning is that a start-up doesn't even know if it will be doing business in five years, let alone five months. A new business in a new industry has no clue what it will need long-term. In fact, he adds, most decisions for a start-up are incredibly temporary. His own experience at 37signals is that although they’ve been around for ten years, they only worry about ‘the next two weeks’ or if things are really crazy ‘two months’. They don’t worry about what next year might look like as it has very little impact on what it will actually look like.

37signals: Long-Term Business Planning Is A Fantasy

I’m looking forward to getting hold of Jason Fried and David Heinemeier Hansson’s book ‘Rework’. It’s clear that Jason and David share my thinking on ‘Unplan Your Business’ and some of my ideas on work and business from 'Juggle! Rethink Work, Reclaim Your Life'.

Their company 37signals agrees that organisational obsession with long term planning is futile. Here’s an extract from a great post on the 37signals blog by Matt from last May explaining why:

"Why don’t we just call plans what they really are: guesses. Unless you’re a fortune teller, long-term business planning is a fantasy. There are just too many factors that are out of your hands: market conditions, competitors, customers, the economy, etc. Writing a plan makes you feel in control of things you can’t actually control.

In fact, you might as well change the name of your business plans to business guesses, your financial plans to financial guesses, and your strategic planning to strategic guesses. Do that and you’ll probably start putting a lot less weight into those things".

37signals have created a great little video to promote the book. I love it; it could have been one of ours for ‘Unplan Your Business’! Check it out here: