The Four: The Hidden DNA of Amazon, Apple, Facebook, and Google

/0 Comments/in , , , , /by

Galloway, an entrepreneur, and professor at NYU Stern provides a perceptive analysis of the four-horse race to become a billionaire company in THE FOUR: the hidden DNA of Amazon, Apple, Facebook, and Google. The author casually uncovers how each of these companies has deployed iconic leadership, technology, storytelling, fearless innovation, lightening execution and blatant plagiarism to devastating effects.

The author expressly demonstrates that despite their brilliance, the Four have not achieved dominance by themselves. They are driven by technology and capital and have thrived within a hyper-consumer de-regulated capitalist culture. Starting in America, then rapidly scaling throughout the world, the Four are the product of a Faustian bargain between weary institutions and evaporating middle class, attention-seeking media, and profit-hungry market. Fundamental to the success of these four great companies is how they used strategy and technology to appeal to basic human needs and desires.

In Galloway thesis, each of them appeals to a particular human organ. Google targets the brain and thirst for knowledge, Facebook leverages on the heart and our need to develop empathic and meaningful relationships, Amazon targets the guts by satisfying the impulse to consume while Apple focuses firmly on our genitals. With their discovery of human desires, the Four have gone about declaring war on what entrepreneurs euphemistically refer to as “friction.”

Friction includes every obstacle in the way of satisfying a given desire. Starting from the synaptic connection in the brain responsible for decision-making processes to the rules issued by regulatory and tax authorities to supply chain all the way down to the manufacturers of products in the developing world. However, the author affirms that this is not bad news. The laws of friction have been an undeniably positive development for consumers. Products are cheaper and the level of customer service has reached new heights. This system is so successful that people grant The Four access into their lives.

The Four are attempting to cement their dominance by becoming providers of public infrastructures. In this regard, Amazon is leading the pack. It is marshaling a global logistics operation that is the envy of most nation-states, including a fleet of Boeing 767s, drones, thousands of tractor trailers and trans-pacific shipping. Google has server arms and is launching blimps into the atmosphere that will beam broadband down to earth. These organizations are committed to becoming a permanent fixture of the future.

For the foreseeable future, Galloway suggests that the four will continue to reign supreme. That is, if they don’t pounce each other. If history taught us something, it is that Gods don’t share power well. And on current figures, Amazon seems the most aggressive and effective at stealing market share. They are even out stealing Google in searches with 55 percent of product searches starting on Amazon against Google’s 28 percent. As the author put it, “The prize? A trillion-dollar-plus valuation and power and influence greater than any entity in history.” In chapter nine, Galloway teases with a possible Fifth Horseman, exploring candidates, from Netflix to China’s famous Alibaba. Toward the end of the book, Gallow advises young talents on how to succeed in a new tech-dominated world. Throughout the book, Galloway pulls a few punches and never holds back any controversial opinion.

The author does not write the book to tarnish the reputation of the four companies but rather to offer a source of encouragement and understanding of the value of business. “I wrote this book for the same reason. I hope the reader gains insight and a competitive edge in an economy where it’s never been easier to be a billionaire, but it’s never been harder to be a millionaire.” Through this statement, Scott Galloway makes his intentions clear.

By far, one of the most exciting books I have read in the last two years. Understanding The Four is understanding the why, what and how of our habits today. I also found this book of value as a guideline for novices in the field of innovation and entrepreneurialism trying to understand the competitive and challenging business ecosystem the four themselves have created.

THE BIG THREE -  KEY POINTS

Key point #1: The Four have not achieved dominance by themselves despite their brilliance. Their similarity is that technology and capital drive them, thriving within hyper-consumer and deregulated capitalist culture.

Key point #2:  The Four used technology and strategy to understand and appeal to basic human desires.

Key point #3: The Four undoubtedly faced threats among each other, the entrance of a possible 5th horse and other forces outside of their industries, such as Google’s ongoing confrontation with the European Commission. However, the Four will continue to reign supreme.

THE 8TH HABIT:  FROM EFFECTIVENESS TO GREATNESS

/0 Comments/in , , , , , /by

Being effective is no longer an option in today’s dynamic and ever-changing world. It is a must, a requirement. Things keep changing and without effectiveness, you will end up without the necessary requirement and standard.

In this book, Stephen Covey shows us how to be as effective as we could be. He also makes us understand how we can move from effectiveness to greatness. The first 7 habits form the foundation, while the 8th habit takes us to true fulfillment in the age of knowledge workers as described by Covey.

The book is divided into two sections, 1) Finding your voice and 2) Inspiring others to find theirs.

1) Finding your Voice: The purpose of this habit is to make sure you find your voice to a point that you can be sure you are 100% involved in that which is important to you. Your body, soul, mind and spirit are all engaged in whatever you are doing. To find your voice, you need to understand your natural talents, what really interests you and what you love doing. To understand this, you have to listen and trust your inner voice, your conscience as it tells you what is the right thing to do. We can discover our voice because of these three gifts we possess:

  1.    The freedom to choose
  2.    The natural law which dictates the consequence of our behavior.
  3.    The four intelligences, which are mental, emotional, spiritual and physical.

Covey does not stop at that. He moves on to give insight to great achievers and how they express their voice through their four intelligences. For example, great achievers develop: 

  • Their mental energy into vision
  • Their emotional energy into passion
  • Their spiritual energy into conscience
  • Their physical energy into discipline

Hitler had vision, passion and discipline but his downfall came from his lack of understanding about the second gift. He was egoistic. He refused to control his ego and let his conscience guide his behavior. Therefore, we must not fall into that same pit but learn from it.

The truth in business today is that so many people have lost their voice or they have yet to find it. These kind of people go to work every day to satisfy their bodily need and fail to put their natural talents to work and use their creativity and intelligence. They need their voices back or need to find them. We all do. The question now is how do we find our voice? Find out more in the 8th habit.

2) Inspiring others to find their Voice:

When you have successfully found your voice, the next thing is to help others find theirs which is somewhat about leadership. Great leaders have always inspired people to find their voice. Greatness is always the end result of people or organizations who eventually find their voice.

Covey talks about leadership greatness and organizational greatness. He demonstrated that leadership greatness is all about four principal things which are the 7 habits, pathfinding, aligning and empowering. Organizational greatness, on the other hand, comes from vision, mission and core values that bring synergy, commitment, clarity and accountability. An organization with leaders who understand and live the four leadership principles of pathfinding, modeling, alignment and empowerment and great people who have discovered their voice have transformed from effectiveness to greatness.

He finally leaves us with four top disciplines that if consistent with, they will improve your ability to focus and execute your top priorities.

  • Focus on what is most important
  • Have a compelling board
  • Break down your goals into actionable plans
  • Be accountable

Having this book on your list should be your priority. Get it and thank me later...

The Big Three - Key Points

Key point #1: The way to step from effectiveness into greatness is by finding your voice.

Key point #2: Maximize the three gifts in finding your voice.

Key point #3: Become a leader that inspires people to find their voice.

One last thing

“People simply feel better about themselves when they’re good at something.”
― Stephen R. Covey 

So Good They Can’t Ignore You

/0 Comments/in , , , /by

In this book, Cal Newport contradicts a long-held mindset about following your passion. He believed there is more to loving what you do than just following your passion. To discover this and back up his point, he set out on a quest by spending time with a Venture capitalist, organic farmers, writers, freelancers and other passionate individuals that derive great satisfaction in what they do.  In this quest, Newport identified strategies used and pitfalls avoided by these individuals in developing their career. Passion comes after you have invested in becoming excellent at something valuable not before you attempt something. Aligning your career with your pre-existing passion does not matter. “So Good They Can’t Ignore You” will change your perspective about your passion, career, happiness and developing a remarkable lifestyle."

 

Steve Mark likes to say “be so good they can’t ignore you” irrespective of your level in your career. Whether you are just starting up, or you are a professional trying to move to the next level, your target should be to master your craft to the point where people can’t help but notice you. Being passionate about what you do is a great goal but following your passion will not get you there. There are two fundamental problems attached to following your passion:

 

Firstly, it assumes that people have a pre-existing passion they can identify and use when making career decisions. However, most people end up feeling lost because they have no idea about what they want to do.

 

Secondly, there is an assumption that says if you like something you will really like doing it for a job. “We don’t have an established evidence that is true,” Newport says. People passionate about their work has little to do with whether their job matches their pre-existing passions.  The bottom line is let your passion follow you in your craft and become someone that can’t be ignored and not to follow your passion. Try something interesting to do, find a skill and career path to pursue and if you are stuck at a crossroad, flip a coin. Make your skill valuable by reaching a high level of expertise. For example, many people look down on a linguistic major for being impractical. You can be very good at a particular type of writing; it will make you stand out. People who are passionate about their work develop the passion over time after building their skill to the point that they became rear and valuable.

 

To become so good at what you do, you need to master that skill through deliberate practice. Once you have chosen a career path, the next step is to master the skills in it to become irreplaceable. “You don’t have a leverage until you become so good.” Says Newport. Look out for simple and common mistakes that show up every day when working on your skill and don’t stop getting better. Many people build their skill to a stage that they become so comfortable and they stop improving on it. It is a deadly risk. To avoid this, push yourself beyond the comfort zone and continuously practice your skills just the way athletes, musicians or artists would.

 

Finally, you have to be good at something before big things start to happen. Don’t stop building on your skills. Be so good that you can’t be ignored.

 

The Big Three - Key Points

 

Key Point #1:

Do not follow your passion. Let your passion follow you and learn how you can grow your mindset around your passion.

 

Key Point #2:

To become so good at what you do, you need to master that skill through deliberate practice. You don’t have a leverage until you become so good.

 

Key Point #3:

Push yourself beyond your comfort zone and continuously practice your skills just the way athletes, musicians or artists do.

 

One Last Thing

“Passion comes after you put in the hard work to become excellent at something valuable, not before. In other words, what you do for a living is much less important than how you do it.”

― Cal newport, So Good They Can't Ignore You: Why Skills Trump Passion in the Quest for Work You Love

Innovators

/0 Comments/in , , , , , , /by

Walter Isaacson, a biography writer, reveals the story of the people who created the computer and internet. It is a standard history of digital revolution and an indispensable guide to how innovation was birthed. He describes the talents that allowed confident entrepreneurs to turn their visionary ideas into a disruptive leap, why some succeeded and why some fail.

The book started with a genius named Ada Bryon, the daughter of Lord Bryon. She was tutored in math which she further nurtured herself in adulthood and also studied art. She had a burning passion for one and felt the other helped discipline herself. She soon met Charles Babbage, a science and math whiz who invented the difference engine, the giant calculating machine. Soon, Ada started using her sense of art and mathematical ability to expand upon an improved version of the difference engine, the analytical engine. This machine would be able to process different problems and even switch between what to solve on its own. When translating a transcript of Babbage’s description, Ada added her own notes which envisioned the modern computer. Mostly, she described computer as we know them, Versatile general-purpose machine. Sadly, Babbage’s machine was never invented, and he died in poverty. Ada got married to William King who later became the Earl of Lovelace which led to her being known as Ada Lovelace.

Another group of genius’ was Eckert and Mauchly who served as counterbalances for each other making them typical of many digital-arts leadership duos. Eckert drove people with a passion for precision while Mauchly tended to calm them and make them feel loved. Eckert conceded that neither could have done it alone. In 1946, they both formed their commercial business that created the next big computer maned UNIVAC, which became a celebrity on election night in 1952 by predicting the winner early. With Grace Hopper, the first workable compiler came into existence. She allowed ordinary folks to write programs in something that looks like English. She started the open-source approach by sending her workout for others to improve and lead the creation of COBOL, the first cross-platform language for computers.

The next prominent actor on our stage wasn’t a single player but a team assembled at AT&T Bell Labs. By bringing theorists and engineers who had vision and passion, they set the stage for the development of the solid state device known as the transistor. The three players who earned the Nobel prize for this discovery were William Shockley, Walter Brattain and John Bardeen Brattain. Bardeen produced the first crude transistor in 1947 and Shockley produced an improvised version soon after. It wasn’t long before transistors were replacing the vacuum tubes in radios and finding their way into computers.

Other recognized players in this book include John Von Neumann, a Hungarian-born mathematician. He contributed expressly to figuring out how to store a program in computer memory. He also figured out how to make a computer modify its program based on the results it was getting. Robert Noyce led a team that made a better and more efficient microchip. The idea of a microchip was to place multiple devices like transistors on the same piece of silicon and was brought into existence by two major companies. Jack Kilby led the first team. Kilby’s product featured gold wires connecting the device while Noyce’s chip laid down a grid of copper on the chip to connect the chips. The race was to make microchips smaller, faster, cheaper and more powerful. Ultimately, both companies worked it out so they could benefit. Kilby finally received the Nobel prize in 2000 while Noyce died in 1990. Tim Berners Lee created the necessary tools needed to bring his vision to life. His vision was to create a single global web of information which led him to use hypertext to connect one document on one computer to another elsewhere on the internet.

The final story in this book involves two graduate students from Stanford who were both rejected by MIT. While Larry Page and Sergey Brin’s Google search engine wasn’t the first of its kind, it did become most famous.

This book is full of people who stood at the time of intersection of the arts and science and made their contributions.

THE BIG THREE - KEY POINTS

Key point #1: Innovation is rarely one single individual’s effort as it’s based on collaboration integration and incremental improvement

Key point #2:  These innovators were willing to share their ideas, thoughts and work with people that make them significant

Key point #3: Progress doesn’t happen overnight or behind closed doors. It's only when people come together to share, collaborate, create and negate that ideas will amount to something that can change the world.

Hit Refresh

/0 Comments/in , , /by

Microsoft CEO, Satya Nadella resolves to write Hit Refresh to have and share the blueprint of what he has in mind as regards changing the “know-it-all” culture of Microsoft to ‘learn it all.’ The new culture revolves around listening, learning more and talking less.  Hit refresh is a terrific study in changing the culture. It reveals Nadella’s perspective about leadership. Three years ago, Nadella succeeded Bill Gates and Steve Ballmer. He found out that the period of stalled growth has resulted in causing a once-dominant software company to be “sick” and its employees “disheartened.” The once PC-centric now lagged behind others. Nadella throw opens the story of his personal life and his work as a change-making leader, and he explains the need for machine intelligence.

Nadella happens to be a modest, likable individual that evolve from an accomplished family; his parent nurtured him and taught him the importance of balance and value of intellect. He arrived in the United States just before the 1900s tech boom, earned his computer science degree from the University of Wisconsin, Milwaukee and Master’s degree at the University of Chicago. In 1992, he joined Microsoft. He writes with openness about his challenges as CEO; “hierarchy and pecking order” reigned at the fiefdom-ridden company, stifling spontaneity and creativity. His feedback has been listening with affinity to the employee concerns, to help build and create a new culture that strengthens the staffs to act on their passion and make a substantial difference in a mobile-first cloud- first world where billions of people will be connected to the internet of things. In order to achieve this new culture, the company must adopt growth mindset by being customer obsessed, diverse and inclusive and act as one Microsoft.

Another terrific chapter of this book is about “friends or frienemies.” Nadella forges a surprising new partnership with his fiercest rivals. He left the audience spellbound when he removes an iPhone from his pocket. The phone has Microsoft software and applications on it. He perceived that being able to collaborate and compete with the giants in the marketplace means walking the tightrope. He was able to work successfully with old rivals. In this book, he acknowledges the strength of his competitors and the need to find a smart way to partner with companies that have a strong market position with their service and device.  

Also in this book, the author speaks with integrity about his biggest fumble at Grace Hopper when he addresses the audience at the celebration of women in computing. He told them that they should not ask for raises but instead trust that hard work and long-term efficiency of the system would reward them.

What makes Hit Refresh extremely fascinating is Nadella’s capacity to acknowledge his mistakes, laugh at it and to invite Microsoft employees to look at the video and learn from it.  That is a practical leadership lesson most leaders should not hesitate to adopt.

Hit Refresh includes descriptions of experimental retreats, “hacks” meant to fire passions, leadership principles and other tips. This book is a hit. But beyond that, it is a refreshing read.

The Big Three - Key Points

Key Point #1:

Culture and Leadership and it advice to have the mindset of growth.

Key Point #2:

Acknowledge the strength of your competitors and the need to find a smart way to partner with companies that have a strong market position with their service and device.  

Key Point #3:

Be able to work successfully with old rivals. Being able to collaborate and compete with the giants in the marketplace means walking the tightrope.

One Last Thing 

“Culture eats strategy for breakfast.”
― Satya Nadella

Steve Jobs

/0 Comments/in , , /by

The author, Walter Isaacson was the former CEO of CNN and managing editor of Times Magazine. He wrote this book with Steve Jobs consent which makes it the only authorized biography about Steve Jobs. Isaacson conducted over forty interviews with Steve Jobs over the last two years before his death.

Steve Jobs grew up in a middle-class neighborhood; Job recalls that his father had a good sense of design. As Jobs was showing Isaacson around his childhood home, he couldn’t help but stop to tell a story about the fence his father built 50 years before and is still standing. He said his father had told him that it was important to craft the backs of the things he would build- like cabinets and fences even though they are hidden from view. Jobs carried this passion of creating great products with him throughout his life and career.

Steve Jobs was as fascinating as he was successful. His vision and ability to innovate left a landmark in the universe. His dream started taking form when he set out with Steve Wozniak as they launched Apple computers from their garage in Palo Alto. He was a man who created this massive vision for Apple out of his reality distortion field (RDF). What RDF means was once Steve decided that something should happen, he would bend reality to his will until it came true. This attitude extended to everyone around him. With this, he could convince a sleepless team of engineers to work another 10 hours on Macintosh font because it would become the most celebrated computer in the world.

To Jobs, the product was so important that when he came back to Apple, he decided that Jonathan Ives, the lead designer should report directly to him. In most companies, the design team does not have a seat in the boardroom. The engineering team tells the design team the specs they want, and they build a nice case around it. But at Apple, the reverse is the case; the design team tells the engineering team how they need to configure their contribution to the end product. The dominating theme of any Apple product from the beginning of the company is Simplicity. Job continually forced Apple to search for the simplicity on the far side of complexity.  Jobs believed ignoring reality is fine when you are attempting to get people to see beyond their limit. This ability does not always manifest itself in positive ways. He would demand more from his reams than anybody else could expect, often pushing people over the edge. As people who have worked with him would tell, it often worked. Jobs tells about one of his outsourced jobs which he was supposed to be working on at Atari. It was outsourced to Wozniak telling him that he needed it to be done in few days even though most engineers would take at least a few months. Wozniak finished it in four days and turned in a design that was efficient and elegant beyond belief. Jobs has used this skill multiple times in his career pushing people beyond their limit and producing remarkable results. However, the dark side surfaced when he was diagnosed with cancer.

Steve Jobs, one of the most remarkable visionary product designer and the best CEO’s of all times was a great example worth emulating when it comes to his ability to give attention to details and curiosity about how the world works.

THE BIG THREE - KEYPOINTS

Key point #1: Steve Jobs would pull impossible feats into the realm of possible through charisma, persistence, and marketing. He operates in his reality distortion field

Key point #2: Jobs constantly force Apple to search for the simplicity on the far side of complexity

Key point #3: He chose to say no to hundred other ideas that exist by focusing on the most important things and eliminating everything else.

One Last Thing 

“One way to remember who you are is to remember who your heroes are.”
― Walter Isaacson

No Limits

/0 Comments/in , , /by

John Maxwell, a prolific writer, speaker and leadership coach, helps us to explore areas where we have limited ourselves. In his book, No Limit, he says that we often limit ourselves in various areas of life causing us not to live up to our fullest potential. Breaking down capacity into three parts, awareness, ability and choice, he stated his capacity challenge. He says if you grow in your awareness, develop your abilities and make the right choice, you can reach and grow your capacity. What if our limit is not really our limit? Each chapter of this book opens us up to traits and skills we can increase to blow the cap off our capacity.  Some are things we already possess such as energy, creativity and leadership. Other things we have to choose such as attitude, character and intentionality.

He also draws the reader’s attention to talent and the ability to use your gift the best way you can. Rather than wasting time on your weak areas, it is advisable to focus on your natural strengths and develop them for your benefit and that of others. The author recommends forgetting the "anything is possible" myth. He said what stops people from reaching their capacity often isn’t lack of desire. It’s usually lack of awareness. Sad is the day for any man when he is absolutely satisfied with the life he is living, thoughts he is thinking, deeds he is doing. Dysfunctional people want others to function on their level, and average people want others to be average while high achievers want others to achieve. No one has ever stayed the same while at the same time rising to a higher level. Willingness to change is a price we need to pay to grow. You have to make yourself better so that you can have more to give. This requires an abundance mindset. The question is how can we make things better if we are already successful? Being successful sometimes comes with a temptation to be lulled into false security to believe that we have arrived. The greatest detriment is relying on past success continually. The world will try to talk you out of hard work. Sometimes we have a conviction that we can’t get ahead, we feel down and we watch our lives go down the hill.  The good news is this; your production capacity is within your control. Repeated choices to take responsibility give you mental and emotional momentum which only makes you feel stronger and better about yourself. Resilient people don’t focus on negative experiences, they focus on what they can feel from experience. The truth is if you cannot manage yourself, you cannot manage your life. You cannot maximize your capacity if you do not increase your discipline. The author concludes with words of affirmation:

“I believe in you and I believe in your ability to reach your capacity.”

This book contains everything you need to become aware of what is limiting you, the ability you need to develop the capacities in you and how to make choices that will help to maximize your capacity.

THE BIG THREE - KEY POINTS

Key point #1: Awareness + Ability + Choice = Capacity

Key point #2: Focus on your natural strength and not on your weakness

Key point #3: Your Production capacity is within your control

One Last Thing

“Life is like a ten-speed bike. Most of us have gears we never use.”
― John C. Maxwell

 

Innovation and Entrepreneurship

/0 Comments/in , , /by

Peter Drucker is known to be the most famous management author of the century. This book does not treat innovation as an academic subject but outstandingly written with rich organizational life examples using management view. The author focuses on how innovation and entrepreneurship can be learned and applied by anyone. He wants everyone to have the mindset of changing how they do things to make a massive difference. ​

This book gave a meaningful and provocative definition of innovation. Peter Drucker began by teaching innovation and entrepreneurship in the mid-1950’s putting into writing his experience from the past three decades of testing his ideas. He derived his examples from the experiences he had as a consultant and the experience of people he mentored and taught. ​

He started by drawing his readers attention to a mystery: why in the American economy between 1965-1988, despite the recession, oil shock, inflation in some government and industry, there was still a massive job growth. Most people describe the growth as “hi-tech”. The key technology driving job growth is not widget or gadget but entrepreneurship management. The force of entrepreneur is always more significant than the current state of the economy suggest Drucker. Huge successes recorded by great influencers such as McDonald were majorly due to better management of a service previously run by mom and pops owners.  Everything, from the production of the product, selling technique, the way it was served and the package was refined beyond belief. It was not the ‘hi-tech’ thing but doing things in a different, better and meaningful way and in the process creating new value. 

In this book, Drucker sees entrepreneurship has a way of doing things differently. It is not a personality trait but a feature to be observed in people’s actions and functionality. Entrepreneurs are made to upset and disorganized. He/she is a wild card that generates wealth through creative destruction. They deal with uncertainty but still have the ability to explore change and respond positively and intelligently to change.  Embracing changes and trying out different things is the best way to invest resources. Entrepreneurship becomes risky when simple and well-known rules are violated. They become less risky when it is systematically managed and purposeful.

​Innovation, on the other hand, is simple and often has nothing to do with technology or inventions. Science and technology are the least promising of all sources of innovation, Drucker suggests. He says in reality, innovation result to success when you take advantage of an unexpected change in the society. Innovation becomes a great deal when it meets the market through the catalyst of entrepreneurial management then your start creating things of great value.  Good innovation is always much focused. It is not about trying to do many things but just one thing excellently well. The most successful products are those that save effort, time, money and save their users from thinking. People do not purchase a product but what the product does for them. The bigger picture of innovation is to provide satisfaction where there was none before. The book concludes with Drucker giving a clearer picture of what the future holds.

The Big Three - Key Points ​

Key Point #1: Entrepreneurship and it advises to invest in resources, explore change and respond positively to it. ​

Key Point #2: Innovation and it advises to innovation should save time, energy and provide satisfaction where there is none. ​

Key Point #3: People do not purchase a product but what the product does for them. The bigger picture of innovation is to provide satisfaction where there was none before.

One Last Thing

“Entrepreneurs, by definition, shift resources from areas of low productivity and yield to areas of higher productivity and yield. Of course, there is a risk they may not succeed. But if they are even moderately successful, the returns should be more than adequate to offset whatever risk there might be.”

― Peter F. Drucker, Innovation and Entrepreneurship

THE OUTLIERS

/0 Comments/in , , , , , /by

The Outliers is structured around a series of case studies, cultures and time periods that are all related to same theories and thesis. According to Malcolm, success has nothing to do with high intelligence, level of genius or innate ability. Instead, success is based on prior investment of hard work, creativity, time, support and opportunity. Gladwell says it is that simple. Your culture, legacy and environment also play a part. He backed his point using various case studies of triumph and success. When an opportunity presents itself, you must be prepared and ready to maximize on it. That is not the point where you begin your preparation. Your prior preparation will determine if you will seize the opportunity or lose it. There is no shortcut to mastery. You must put in the work.

Below is a quick summary of the six key points Malcolm Gladwell takes us through:

Opportunity: Success rarely comes to those who struggle to break from the norm. There must be at least a glimmer of talent in you to achieve success. Opportunity gives you the chance to access coaches and tools that you need to build your skills. Those tools prepare you for a more robust opportunity. Gladwell considers remarkable individuals in this section such as Bill Joy, Robert Oppenheimer, Bill Gates and an unsung intellectual Chris Langan.

Timing: Timing is crucial and critical to success and opportunity. When and where you are born can influence your opportunity. 14 of the 75 richest people in history were born between 1860’s and 1870’s when the industrial revolution was taking off. Also in 1935, there were fewer babies born, roughly 600,000, which means a smaller class size. During this period, there were greater chances of getting into college, good sports team or even getting a good job in better firms.

 

Upbringing: The quality of the upbringing a child receives also influences his/her success. Parents that are more involved in their kids’ lives provide them with opportunities that lead to the child’s success. This can include enrolling them in summer school, taking them to museums and assisting with their homework. Kids that do not have parental care or affection tend to lose more opportunity.

10,000 hours: It typically takes 10,000 hours to become a master of something. You must invest that amount of your time.

Meaningful Work: You must invest hard and meaningful work to get the best out of it. Meaningful work makes you want to put in more hours. For instance, immigrants value and practice hard work. Sociologist Louise Farkas confirmed this while studying the immigrants family tree. He found out that the offspring became professionals and successful. She concluded that in spite of their humble background, they have been trained to value and practice hard work.

Legacy: Value drives legacy. Our values are passed down to us from generation to generation which directly affects our current behavior. Dutch psychologist, Geer Hofstede, did an analysis on different country’s cultural tendencies. He identified different dimensions such individualism, collectivism, uncertainty, avoidance and power distance index. Gladwell believes the society of one’s ancestors has a tendency of determining one’s practice and preference, even in the present day.

The Big Three - Key Points:

Key Point #1    Success has nothing to do with level of genius or IQ. It has more to do   with hard work, culture, society, and opportunity.

Key Point #2    Success comes to those who are ready to become a master in what they do.

Key Point #3    To be successful you must be ready to seize opportunities.

 

One Last Thing

“Practice isn't the thing you do once you're good. It's the thing you do that makes you good.”

― Malcolm Gladwell, Outliers: The Story of Success

Zero to One

/0 Comments/in , , , , , , /by

This book is composed of Peter Thiel’s advice on startups with different take away such as the DO’s and DON’TS of startups, what to focus on when building a startup, insight of building a billion-dollar startup that stands the test of time and many more. He gave an illustration of the first team he built which is known as the “PayPal Mafia” who have gone out to help each other start and invest in successful tech companies. They sold PayPal to eBay in 2002 for $1.5billion. Ever since then:

  •    Elon Musk has founded SpaceX and co-founded Tesla Motors
  •    Reid Hoffman co-founded LinkedIn
  •    Steve Chen, Chad Hurley, and Jawed Karim together founded YouTube
  •    Jeremy Stoppelman and Russel Simmons founded Yelp
  •    David Sacks co-founded Yammer
  •    and Thiel himself co-founded Palantir
  • And today, all these seven companies are worth over $1billion.  

This book begins with Peter’s favorite interview question which is, “What important truth do very few people agree with you on?”  He justifies this question by saying that “brilliant thinking is rare, but courage is even shorter than genius”. He further says that globalization without new technology in a world of scarce resources is unsustainable. Because the truth is that technology matters more in globalization. The best way to create wealth is not by spreading old ways but by innovation. And to introduce innovation, we have startups. He points out that competitive market destroys profit. He said, "if you can recognize competition as a destructive force instead of a sign of value, you are saner than most.” To get more capital, you need to be a monopolist and escape competition. You may think monopolies are bad but thinking of it in a world where it’s possible to invent new things, it brings about more creativity and innovations. Creative monopolists add new categories to the categories of products available, thereby giving customers more varieties to choose from.

What makes a monopoly durable? What does a company with large cash flows far into the future look like? There are four key characteristics to describe:

  1. Proprietary technology
  2. Network effects (aka virility)
  3. Simple scalability
  4. Branding

Peter’s next favorite question is “What valuable company is nobody building?” You get a valuable company when you create value and capture value. If you want to create and capture value as an entrepreneur, don’t build an undifferentiated commodity business. The author makes the difference between a perfectly competitive market and a monopoly and explains how both companies are trying to disguise themselves. The author takes us through various schools of thought of startups in each chapter of his book. Some of which are: the ideology of competition which explains why people compete, secrets which reveal why people are not looking for secrets and why companies need to stop believing in secrets, the mechanics of mafia and so on.

He concluded by asking the question: Stagnation or Singularity? It all depends on us. Our task today is to find singular ways to create new things that will make the future transpire from Zero to One. The critical step is to think for yourself, see the world anew, afresh and as strange as it was to the ancients who saw it first. Then we can recreate it and preserve it for the future. Whatever decision you make today, determines the success we experience tomorrow. So think critically and take action not by acting upon a created solution but by searching out a unique problem and proffering a solution to it.

THE BIG THREE - KEY POINTS

Key point #1:  The author encourages monopolization other than perfect competition

Key point #2:   Leverage on the power of exponential growth

Key point #3: Don’t just invent a product; invent an efficient way of selling it.

One Last Thing

“The best entrepreneurs know this: every great business is built around a secret that’s hidden from the outside. A great company is a conspiracy to change the world; when you share your secret, the recipient becomes a fellow conspirator.”
― Peter Thiel, Zero to One: Notes on Startups, or How to Build the Future