Why Constant Changes Kill Growth | Ep 862
episodePreviously titled “Why Constant Changes Kill Growth | Ep 893” — renamed by the publisher on Aug 2, 2026
Transcript
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What is the 20% drop rule?
And it's really, really hard, which is this, there's a lot of things that you can do to grow the business. You have a lot of ideas that you're coming off on. And so let's imagine that this line represents your current revenue level. Whenever you make a change in the business, my estimation is that we see about a 20% decrease in revenue as a result of a change, especially if it's a manual change. We're changing a sales process. We're changing a customer service process, something that involves humans. We're changing something that they're doing. We'll typically see a 20% decrease guaranteed simply because of the cost of change. But once I kind of like realized this, it changed what things I decided to choose to change to begin with.
Meaning there are probably 100 things that you have on those notes and each of them you're like, this could give me 5% more, this give me 10% more, this give me whatever. If I know them and have a 20% guaranteed cost, that whether it works or not, I'm going to have this happen. It changes what things I'm willing to take a bet on. And so for me, my kind of minimum litmus test for this is I need to see at least a 20% bump or believe I can see a 20% bump from any implementation that I'm going to run, or I'm not going to take the guaranteed 20% loss. And so part of this comes into something called ICE, which is kind of an investor terminology, but basically of impact, confidence, how likely, like how big of a difference is it going to make? How likely is that to happen? And then you've got ease, which is basically the value equation without speed.
And so if we're looking at any of the implementation that you're thinking about putting in the business, I'd be like, okay, how big of an impact do I think this could have? How likely do I think this is to occur? And then how fast and how easy do I think I can make it happen? And so typically we'll organize it in that way. And you'll probably figure out pretty quickly, if I were to implement two things at once, what do you think would happen, right? And so you'd have two negative 20% decreases. And so the end result of like basically taking this ideology to its natural extreme means that you basically can't change that many things in the business and expect it to grow. And so that end result for me has been, and I'm going to be crude on purpose, is that some shit stays fucked. And so there's a lot of things that I would love to do to improve this experience for everyone here. I've got a list many pages long. But every time I do implement a change, it negatively impacts the next group because it was a change.
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Chapters
8 chapters
1
What is the 20% drop rule?
1:14–4:04
2
How can the ICE framework help prioritize changes?
4:04–5:31
3
Why might doing less be more scalable?
5:31–6:46
4
What are the consequences of constant changes in business?
6:46–7:08
5
How should entrepreneurs approach hard problems?
7:08–9:10
6
What strategies can improve business growth?
9:10–15:41
7
How to effectively scale content creation?
15:41–19:36
8
What are the best practices for organic content creation?
19:36–37:19
Speakers
7 identifiedMore from The Game with Alex Hormozi
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