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- Peter Thiel on what most founders don’t understand about differentiation
Peter Thiel on what most founders don’t understand about differentiation
“I think you want to have very big differences inside the team, and then from the outside, you want to be seen as very different from the rest of the world.”
For example, SpacEx’s mission is to go to Mars: “Everybody at the company thinks: we’re the only place in the world where people are going to go to Mars. And that one idea separates it very sharply from the rest of the world.”
And then within a company, you want the roles to be as differentiated as possible. One of the challenges in an early stage startup is that the roles tend to fluctuate a lot. Thiel believes this is one of the ways in which conflicts tend to arise.
“If you were a sociopathic boss who just wanted to create conflicts amongst your employees for no reason at all, the formula for creating conflicts is to tell two people to do the exact same thing.”
To summarize his point, Thiel concludes:
“You want to have roles differentiated sharply differentiated within companies. And you want to have the mission of the company differentiated sharply from the rest of the world.”