Propensity for Success: The Essential Triangle
Ambition, Passion and Resources.
NOTE: This was drafted months before Daou’s $1B acquisition by TWE in late 2023. It certainly place a ‘positive check’ in my hypothesis!
In 2019, during a research visit to Paso Robles wineries for my upcoming book Drive Through Paso Robles — a passion project outside my role as Senior Principal leading Customer Strategy at Slalom — I had the opportunity to meet Daniel Daou, the founder and winemaker of Daou Vineyards. What struck me was not just the success of their wines or the growth of their startup, but the story behind it: a transition from a successful tech exit to building a global legacy in the wine industry. Despite starting with significant financial resources, it’s clear that money alone doesn’t guarantee success.
Reflecting on my own experiences — both successes and failures — as well as my observations as an advisor to entrepreneurs and my work with Fortune 100 companies, I have a hypothesis:
There is a high propensity for success when the leaders of a business, whether a startup or a business unit within an enterprise, possess high & sustained levels of Ambition, Passion, and Resources.
The Essential Triangle: Ambition, Passion, and Resources
In the startup world, entrepreneurs often come with an abundance of Ambition and Passion, but they frequently lack necessary Resources — capital and talent. This deficit significantly reduces their chances of success from the outset. While they may achieve initial traction or even develop a minimum viable product (MVP), the journey is slow and challenging. The ability to rapidly test ideas, iterate, and make decisive moves to scald are crucial when moving from concept to market. Without Resources this becomes extremely difficult.
Without adequate Resources, startups embark on the difficult task of securing capital and talent. The likelihood of success is heavily influenced by market conditions — both in terms of capital availability and talent acquisition. If these Resources are not secured, the venture is unlikely to survive, regardless of the entrepreneur’s Ambition or Passion.
In contrast, large enterprises typically have no shortage of Resources. Although securing budget and talent may require navigating corporate bureaucracy, it is generally more straightforward than the Resource challenges faced by startups. However, what is often lacking in enterprises is the Passion among leaders to challenge the status quo, innovate, and embrace an entrepreneurial spirit within the organization. Without Passion, there is no Ambition, and merely having Resources is insufficient for success.
Daniel Daou exemplifies the successful alignment of Ambition, Passion, and Resources.
He possesses the Resources necessary for success, but it’s his Passion that truly sets him apart. Whether discussing the native yeast used in fermentation, the meticulous process of crafting barrels, or the nuances of dry farming and phenolic compounds, Daniel’s dedication to his craft is palpable. Add to Resources and Passion, his powerful Ambition of truly disrupting Paso Robles and building a generational brand.
The Time Factor
Time is a critical factor in this equation. The longer any side of this triangle — Ambition, Passion, or Resources — remains weak or imbalanced, the greater the likelihood of business failure. In enterprises, we often see innovation projects that begin with great momentum but falter due to a lack of Resources (or difficulty navigating corporate politics or being crucified to traditional measures of success), dwindling Passion, or weak Ambition, ultimately leading to failure.
Consider an entrepreneur who starts with strong Passion and Ambition but lacks Resources. After years of grinding without raising capital or attracting top talent, growth stagnates. Without the ability to pay themselves or reinvest in the business, the likelihood of success diminishes significantly.
Conclusion
In conclusion, whether leading a startup or steering a division within a large enterprise, the convergence of Ambition, Passion, and Resources is essential for success. Neglecting any one of these elements jeopardizes the entire venture.
