In this episode of Programmed to Fail, we explore how accounting costs do not reveal the value being generated in the production process and cannot be used, on their own, as a guide for specific choices. Cost is not an objective reality, particularly to those who know the vagaries of cost accounting. Instead, our view of cost depends on subjective use value and is related to the term opportunity cost, or the next-best choice foregone. This chapter reveals that for defense acquisition to truly understand weapons value and leverage the power of commercial markets, it needs to shift away from its obsession with financial metrics.

This podcast was produced by Eric Lofgren. You can follow me on Twitter @AcqTalk and find more information at https://AcquisitionTalk.com

Programmed to Fail - 9. Cost

We just finished our 10th annual Hacking for Defense class at Stanford.

What a year.

Hacking for Defense, now in 70 universities, has teams of students working to understand and help solve national security problems. At Stanford this quarter the 8 teams of 41 students collectively interviewed 1106 beneficiaries, stakeholders, requirements writers, program managers, industry partners, etc. – while simultaneously building a series of minimal viable products and developing a path to deployment.

Hacking for Defense @ Stanford 2025 – Lessons Learned Presentations

We just finished the 15th<>annual Lean LaunchPad class at Stanford. The class had gotten so popular that in 2021 we started teaching it in both the winter and spring sessions.

During the 2025 spring quarter the eight teams spoke to 935 potential customers, beneficiaries and regulators. Most students spent 15-20 hours a week on the class, about double that of a normal class.

Lean Launchpad at Stanford – 2025

I’ve been having coffee with lots of frustrated founders (my students and others) bemoaning most VCs won’t even meet with them unless they have AI in their fundraising pitch. And the AI startups they see are getting valuations that appear nonsensical. These conversations brought back a sense of Déjà vu from the Dot Com bubble (at the turn of this century), when if you didn’t have internet as part of your pitch you weren’t getting funded.

Why Investors Don’t Care About Your Business

How did you go bankrupt?”
Two ways. Gradually, then suddenly.”
Ernest Hemingway, The Sun Also Rises

Every disruptive technology since the fire and the wheel have forced leaders to adapt or die. This post tells the story of what happened when 4,000 companies faced a disruptive technology and why only one survived.

Blind to Disruption – The CEOs Who Missed the Future

How To Sell to the Dept of War – The 2025 PEO Directory

When Sh!t Hits the Fan – Founders in a Crisis

Tons of words have been written about the Trump Administrations war on Science in Universities. But few people have asked what, exactly, is science? How does it work? Who are the scientists? What do they do? And more importantly, why should anyone (outside of universities) care?

No Science, No Startups: The Innovation Engine We’re Switching Off

The October 2025 PEO Directory – Update 2.

The Department of War (DoW) is one of the world’s largest organizations.  If you’re a startup trying to figure out who to call on and how to navigate the system, it can be – to put it politely – challenging.

How to Sell to the Dept of War – The 2025 PEO Directory – Now with 500 more names

I’ve always thought of myself as a practitioner. In the startups I was part of, the only “strategy” were my marketing tactics on how to make the VP of Sales the richest person in the company. After I retired, I created Customer Development and co-created the Lean Startup as a simple methodology which codified founders best practices – in a language and process that was easy to understand and implement. All from a practitioner’s point of view.

It only took 20 years, but the Strategic Management Society now Believes the Lean Startup is a Strategy

The Department of War Just Shot the Accountants and Opted for Speed

A podcast on the management, technology, and political-economy of weapon systems acquisition.

Programmed to Fail - 9. Cost

Acquisition Talk