Loonshots

About the Author

Safi Bahcall is a physicist, former biotech CEO, and author known for his work on innovation and business strategy. With a background in theoretical physics and extensive experience in the biotech industry, Bahcall brings a unique perspective to the challenges of fostering innovation within organizations. His book, "Loonshots: How to Nurture the Crazy Ideas That Win Wars, Cure Diseases, and Transform Industries," delves into the dynamics of nurturing groundbreaking ideas that often seem improbable or impractical at first.

Main Idea

"How do you consistently come up with 'loonshots'—the crazy big ideas that change the world but which most scientific and business leaders initially think won't work? The most important breakthroughs in any field are almost always the ideas that challenge conventional wisdom and are likely to be shot down at first. These 'loonshots' are disruptive, but their impact is often only recognized in hindsight. To foster more loonshots, organizations need to create a nurturing environment where such ideas can grow and thrive."

"A loonshot challenges conventional wisdom. Whether a change is 'disruptive' or not, on the other hand, refers to the effects of an invention on a market. Loonshots flourish in loonshot nurseries, not in empires devoted to franchises." – Safi Bahcall

Table of Contents

1. What exactly is a loonshot?
2. Rule #1 – Separate the phases
3. Rule #2 – Create a dynamic equilibrium
4. Rule #3 – Spread a system mindset
5. Rule #4 – Create critical mass
6. How to champion a loonshot

What exactly is a loonshot?

The most important breakthroughs never come fully formed. Instead, they are typically fragile ideas that are readily dismissed as crazy. If you're not careful, you can bury them and forget them, which can be a big mistake. Loonshots can change the world.

People who are responsible for developing your high-risk early-stage ideas are like artists. You have to separate them from the soldiers who are responsible for the already-successful steady-growth parts of your organization. You have to create a nursery where loonshots can grow, flourish, and shed their warts.

"There is a pervasive myth of the genius-entrepreneur who builds a long-lasting empire on the back of his ideas and inventions. But the ones who truly succeed—the engineers of serendipity—play a more humble role. Rather than champion any individual loonshot, they create an outstanding structure for nurturing many loonshots." – Safi Bahcall

Loonshots are always fragile, and the first versions will generally have lots of "warts"—limitations that make them appear impractical. They will arrive looking like failures at first because they are so far out there nobody even knows what they are seeing. That's okay because you'll be expecting this to be the case.

To make sure you capture the loonshots available to you, apply some general rules:

• Separate your soldiers from your artists: Soldiers focus on optimizing the already-successful parts of the organization, while artists are intrigued by new possibilities. Make sure your artists and your soldiers are clearly differentiated and handled appropriately.
• Tailor the tools to the phase: Run a tight organization for the soldiers and loosen things up considerably for the artists. Physical separation in a skunkworks building is helpful, but the separate systems you use matter most.
• Watch your blindspot: Look out for both product (P-type) and strategy (S-type) loonshots. P-type loonshots involve new technologies, while S-type loonshots involve new ways of delivering existing products. Nurture both types.

Rule #1 – Separate the phases

Separate your artists from your soldiers. People who are responsible for developing high-risk, early-stage ideas need to be in a different environment than those focused on optimizing already-successful parts of your organization. Create a nursery where loonshots can grow, flourish, and shed their warts.

"There is a pervasive myth of the genius-entrepreneur who builds a long-lasting empire on the back of his ideas and inventions. But the ones who truly succeed—the engineers of serendipity—play a more humble role." – Safi Bahcall

To make sure you capture the loonshots available to you, apply some general rules:

• Separate your soldiers from your artists: Soldiers focus on optimizing the already-successful parts of the organization, while artists are intrigued by new possibilities. Make sure your artists and your soldiers are clearly differentiated and handled appropriately.
• Tailor the tools to the phase: Run a tight organization for the soldiers and loosen things up considerably for the artists. Physical separation in a skunkworks building is helpful, but the separate systems you use matter most.
• Watch your blindspot: Look out for both product (P-type) and strategy (S-type) loonshots. P-type loonshots involve new technologies, while S-type loonshots involve new ways of delivering existing products. Nurture both types.

Rule #2 – Create a dynamic equilibrium

You have to maintain a healthy balance between your artists and your soldiers. Both are important to the long-term future of your firm. Have equal-opportunity respect and provide both with the tools and resources they need to win. Focus on managing the transfer of new ideas between loonshots and franchises.