Internal vs. External Deliverables

I wrote this email for Flowbit. The idea of internal vs. external deliverables is borrowed from Larry Chiang of Stanford University. 

Something to think about over the weekend: 

Moving forward, Flowbit staff will need to ask themselves frequently, "Is this task an Internal Deliverable or an External Deliverable?" The answer to this question can mean life or death for Flowbit as it grows. 

An internal deliverable is any work done that is not part of doing business with customers. 

An external deliverable is any work done that satisfies customer demand or gets more business. 

Large companies are full of internal deliverables. Human Resources, IT Departments, Building Maintenance, etc... But this is also why many companies die so quickly. Their non-revenue generating activities become burdens, and they have to make serious cuts. Internal Deliverables don't generate revenue. They're important, but they don't generate revenue. They can keep a company running, but they don't generate revenue. 

Examples: 

Internal Deliverable Examples: 

1. Figuring out corporate documents (an example of an important Internal Deliverable) 

2. Having meetings about what other people are doing (unless it's related to an external deliverable) 

3. Pitching for people who want to hear pitches 

4. Attending lectures and Pitch Events 

5. Talking at events

6. Doing interviews (admittedly they're really fun) 

7. Taxes, other legal stuff for the company 

8. Attending conferences (unless you go to sell or make business connections) 

9. Me writing this email is an Internal Deliverable 

External Deliverable Examples: 

1. Delivering a product to a customer

2. Consulting for a customer 

3. Reaching out to potential customers

4. Getting customers

5. Developing products that will be shipped to customers 

Internal Deliverables are often necessary and important, but only External Deliverables directly create revenue. Companies die through Internal Deliverables.