Facebook - Prototyping Stategic Advantage

Facebook’s “Beacon” has been hashed out in the blogosphere already. Aventurista points out the apologetic similarlities in Mark Zuckerberg’s apologies. 2007 & 2006. When I first read it and also watched Matt Mower and a few others quit Facebook. I had a similar reaction although I’m staying for now. Facebook doesn’t have my loyalty although for the moment they still have my information.

However, in this story I thought there is something more valuable going on as a management lesson.

Facebook and Mark Zuckerberg have been able to make big bets beyond reason relating to privacy issues twice (news feeds and now beacon); then learn faster from the feedback and outrage. It’s quite possible that this will become more common rather than a more guarded Facebook reaction.

It’s something startups do. Facebook is no longer a startup. However, it’s run by a young dude who we “allow” mistakes. In fact it is one of the lessons that many managers will run with in business. Make a mistake once; learn from it. Just don’t make it again.

I had one boss once who used to love the expression Ready Fire Aim, on the basis again that learning faster where and how to shoot was more important. Facebook is driving this right from the top without fear of failure.

If Facebook can nuture a culture and continue to take risks like this they will be more formidable as a competitor. We would all be many times more outraged if MySpace or another social network had pulled a Beacon. By contrast we give Facebook slack just because we know they are going to come back and change, modify etc. It’s in the code / DNA of the site.

This is an incredibly powerful position for Facebook to be in. Prototyping our community, our directory, and then working out better solutions. In doing this.. they are not only capturing developers they are capturing an “intellectual capital” flow and attention that other companies would die for. Facebook isn’t ready to grow up yet. It’s youthful actions provide an advantage that’s helping it grow; gather mentors, find acceptance and open new avenues.

Few companies understand the communications, or have the network wired to react like Facebook. Ask the question. What big bet will Facebook push next? Then go further. You will be close.

Facebook is in beta. It continues to run like it is in beta.  Concurrently it is remaining agile.