Why you should work on A+ problems

Key Concepts

• A+ Problem: The most critical, high-priority issue facing a company or individual at any given time.
• Streamer Acquisition: The process of a platform acquiring popular content creators.
• Exclusive Streaming Deals: Contracts where a streamer agrees to stream exclusively on a particular platform.
• Data Analysis: Using data to understand a problem and inform strategy.
• Strategic Recommendation: Proposing a course of action to address a problem.
• Cross-Functional Collaboration: Involving different teams or individuals in problem-solving.

The Ninja Incident: An A+ Problem at Twitch

The transcript details a significant challenge faced by Twitch following its acquisition. The platform's top streamer, Ninja, who had a prominent sponsorship with Red Bull and frequent media appearances, was acquired by Microsoft in a reported $20 million exclusive streaming deal. This event led to Twitch losing its biggest streamer "overnight."

Key Points:

• Impact of Losing Top Talent: The departure of a highly visible and popular streamer like Ninja represented a substantial loss for Twitch, impacting viewership and platform engagement.
• Identification of the "A+ Problem": The speaker identified this situation as the "A+ problem," signifying its utmost urgency and importance.

Strategic Response and Problem-Solving

The speaker's immediate reaction was to prioritize addressing this critical issue.

Methodology:

1. Dropping Current Tasks: The speaker immediately ceased their existing work to focus entirely on the A+ problem.
2. Data Analysis: The speaker conducted a data analysis to quantify the magnitude of the problem caused by Ninja's departure. This involved assessing the impact on viewership, engagement, and potentially revenue.
3. Memo Creation: A memo was drafted outlining the situation, the data analysis findings, and a strategic recommendation for how Twitch should proceed.
4. CEO Communication: The memo was sent directly to the CEO.

Outcome and Cross-Functional Involvement:

• CEO's Action: The CEO immediately included the speaker in three relevant group chats, specifically those involving the teams working on the streamer acquisition and retention issues.
• Team Reaction: While initially met with questions ("Why?") due to the speaker's other assigned responsibilities, the CEO's endorsement ("He has good thoughts on it") facilitated the speaker's involvement. This highlights how a clear identification of an A+ problem can override existing structures and encourage collaboration.

The Principle of Working on the A+ Problem

The narrative emphasizes a core principle for both large companies and entrepreneurs: consistently focusing on the most critical issue.

Argument:

• Universality of the A+ Problem: The speaker asserts that "by definition you should always be working on the A+ problem." This implies that identifying and tackling the most significant challenge is a fundamental driver of success and progress.
• Forced Prioritization: The act of working on the A+ problem "forces" a focus and prioritization that can lead to effective solutions, even within complex organizational structures.

Conclusion

The transcript illustrates a practical example of identifying and responding to a critical business challenge. The speaker's proactive approach, utilizing data analysis and strategic communication to address the loss of a major streamer, demonstrates the importance of prioritizing the "A+ problem." This principle is presented as a universal strategy for driving progress, whether in a large corporation or as an entrepreneur, by forcing focus and encouraging cross-functional collaboration to solve the most pressing issues.