Those manufacturers were angry. Support tickets increased by three hundred percent. The support team was overwhelmed and could not respond. The lack of response caused churn. Eight percent of affected manufacturers left. That was twenty six manufacturers generating forty one thousand dollars per month. That revenue is gone.
The definition of done must be meaningful. (5/34)
For a manufacturing platform startup, the definition of done problem is the same. The definition of done is concentrated on five items that do not cover everything. The lack of coverage creates single points of failure. Those failures cause data loss. Data loss causes churn. Churn destroys revenue.
Li's diversified investment strategy says: diversify the definition of done. That eliminates single points of failure. That protects the product. That protects the revenue. (8/34)
The Core Principle
Li's diversified investment strategy was built on a simple insight. The best way to create a meaningful definition of done is to cover multiple dimensions of completeness instead of concentrating on a single dimension like code quality. Li did not evaluate an investment by asking one question. He asked five. The five questions covered five dimensions. Those dimensions ensured that no single point of failure could destroy the investment. (9/34)
For a manufacturing platform startup, the definition of done covers one dimension. That dimension is code quality. It does not cover data integrity, security, performance, documentation, or support readiness. The lack of coverage creates single points of failure.
Li's diversified investment strategy says: cover multiple dimensions. Multiple dimensions eliminate single points of failure. That protects the product.
Four Steps to Apply the Diversified Investment Strategy (10/34)
1. Audit the Current Definition of Done and Identify the Dimensions It Misses
Li audited every investment at CK Hutchison. The audit identified missing dimensions. That created a gap analysis. The gap analysis drove improvement. Improvement reduced risk. Reduced risk protected the portfolio. (11/34)
. No user documentation, API documentation, or runbook updates. Dimension six is support readiness. Not covered. No support team notification, FAQ updates, or monitoring dashboard configuration.
The audit reveals that the current definition of done covers one of six dimensions. The five missing dimensions are single points of failure. Those failures caused the data loss. The data loss caused the churn. The churn destroyed the revenue. (14/34)
For a Scrum team of six to fifteen, the audit should happen in one session of no more than one hour. It should evaluate the current definition of done against at least six dimensions. The audit should be part of the sprint retrospective.
2. Add One Checklist Item for Each Missing Dimension Based on Past Failures (15/34)
Li added one safeguard for each missing dimension in every investment. Each safeguard was specific and based on past failures. The past failures informed the safeguards. The safeguards prevented future failures. That protected the portfolio.
You should add one checklist item for each missing dimension based on past failures. For a manufacturing platform startup, the additions might look like this. (16/34)
For a Scrum team of six to fifteen, add one checklist item for each missing dimension based on past failures. The new definition of done should cover at least six dimensions. The addition should be part of the sprint retrospective.
3. Weight Each Dimension by Business Impact
Li weighted each investment dimension by business impact. The weighting ensured that the most critical dimensions received the most attention. That reduced the most risk and protected the portfolio. (21/34)
For a Scrum team of six to fifteen, weight each dimension by business impact using a scale of one to five. Prioritize the highest weighted dimensions first. The weighting should be part of sprint planning.
4. Review the Definition of Done Every Sprint and Add New Items When a Failure Occurs
Li reviewed every investment at CK Hutchison every quarter. The review added new safeguards when a failure occurred. That closed gaps, reduced risk, and protected the portfolio. (26/34)
You should review the definition of done every sprint and add new items when a failure occurs in an uncovered dimension. For a manufacturing platform startup, the review might look like this.
Last sprint, a failure occurred. The platform experienced a four hour slowdown. Eight hundred manufacturers could not place orders. Lost revenue was twelve thousand dollars. The root cause was a database that was not indexed. Slow indexing caused slow queries. Slow queries caused the slowdown. (27/34)
The gap was identified. The load test did not cover sustained load. A new checklist item was added: Sustained load test is completed for all features that introduce new database queries. The test lasts four hours. Response time must remain under two hundred milliseconds throughout.
The definition of done now has eleven items. The six dimensions are more complete. That eliminates more single points of failure and protects the product. (29/34)
For a Scrum team of six to fifteen, review the definition of done at the end of every sprint. Check for failures. Add new items when a failure occurs in an uncovered dimension. The review should be part of the sprint retrospective.
Closing on Diversified Over Concentrated (30/34)