Jim Collins — What to Make of a Life
4191 segments
Joanne just one day she gasps out to me
and it was just one of those moments.
It's just like etched in my emotional
memory. She just gasps.
I feel like I'm dying. And in a sense,
she was right cuz that identity as as a
world champion athlete, this thing that
she was so encoded for, that she so
loved doing was being taken away from
her. And I realized that one way to
study self-renewal
would be to look at people who go
through what in the book we call cliff
events. These times in life where life
in some really significant way changes
under your feet.
>> Jim, so lovely to see you yet again.
>> Absolutely. I I really really truly just
revel in the idea of a conversation with
you. We've had two previous dances and I
wanted to thank you slashblame you for a
very difficult morning because I had
done lots of research and reading
certainly on your latest work which took
quite a tour of duty to complete. And I
decided that this morning I would go
back
with a lot of coffee to reread the
transcripts of our prior two
conversations. And typically when I do
something like that,
>> I have a few highlights, a few
marginelia to refer back to. And I ended
up underlining about 50 different
things. And it caused a bit of a crisis
in terms of where to start and what to
do.
>> Yeah. But I do have a lot of notes in
the latest work, what to make of a life.
And we will certainly get to that, but
we're going to meander all over the
place.
>> You got it.
>> And I wanted to start with, and I'm
paraphrasing here, but
a line in this new work, which is
effectively that you have more energy at
67 than 37.
>> You are now 68. And I wanted to dig into
that for a minute or maybe even a few
minutes.
>> Yeah.
>> Because looking back at the last two
conversations, I wanted to spot gaps in
the terrain. What had we not discussed?
>> Yep.
>> And
I wanted to look at some of maybe the
mundane things related to routine
>> food. Do you consume caffeine? Are you
still rock climbing? Maybe we'll start
with rock climbing cuz I just had elbow
surgery and I'm looking to get back into
it. Are you still climbing?
>> Not so much. I've been doing cycling
with Joanne.
>> Okay.
>> She has gotten me into going off to
Italy and the Dolommites and places like
that to do these huge mountain passes
and
>> it's something we can share together.
>> Mhm.
>> With whatever years we have left. And I
think that maybe the intense aerobic
aspect of that, you know, if you have
your heart rate above 160 for an hour, 2
hours, I mean, and spiking into the
170s, that's I think that has does
something for you. I'm not sure what.
>> Mhm.
>> But I actually think that's part of it.
And then I just have other ways. I can't
really explain entirely. In fact, that
my team has heard me say multiple times,
where's all this energy come from? Cuz
it's only increased. I really do feel
that I have more energy. I had a lot of
energy at 37. I had a lot of energy at
17. I have more energy at 67 when I
wrote that. 68 now.
>> Mhm.
>> I need less sleep. My clarity, if
anything, I think is higher. And I I
mean, I really really look forward to
4:00 a.m. because that's the point at
which I give myself permission
>> if I'm awake to leap into the day. And
it really is true that I will wake up
and I will think to myself, please, oh,
please, oh, please let it be at least
4:00 a.m. so that I can get up and get
going. And that is it's hard to explain,
but that sense of almost childlike
anticipation
>> uh to get up and get rolling is is
palpable. It's there almost every single
day. Well, I do get one, we might have
spoken about this in our first
conversation, but I've always been a
morning person. So, I actually figured
out how to get two mornings a day and
that I I'm just really fortunate that I
have the ability to nap under any
conditions anywhere at any time I can
nap. And I I was doing a a talk once and
I was a few thousand people in the room
and they had a nice couch backstage and
I'm supposed to go on and I don't know
whatever it was 30 minutes or something
and I laid down on the couch and I just
went bang right out to sleep. I'm like
I'm dreaming and I'm having a sleep etc.
And they come back and they look at me
and they're like he's asleep. Oh my
goodness, he's supposed to be on in like
5 minutes and they shake me and I'm like
okay good to go. I I can go asleep
immediately and then I can wake up
immediately and then I can walk out
3,000 people and I was asleep five
minutes before. I don't know where that
comes from. That's just a fortunate
thing. But what that allows me is I get
two mornings a day. I get first morning,
you know, that when after a night's
sleep, but then I get second morning,
which is after a nap. And and in fact,
my team knows that I'll sometimes say to
them, "I'm going to go get ready for
second morning," which basically is,
"I'm going to go take a nap." And then I
get second morning. And then I've
learned really systematically
what kinds of activities
really fit with what times of day. So is
your first morning, Jim, sorry to
interrupt. Is that 4:00 a.m. to 7:00
a.m. Something like that? What does your
first morning look like?
>> That's ideal. I love I love the 4:00
a.m. to 7 a.m. Joanne tends to sleep
later than me. So, especially when I was
like really working on the book, but
this is a general pattern as well. I
love to be up at 4:00.
I have one cup of coffee that I make in
the day. I don't have caffeine after
that. I travel with my own coffee cuz
you you really need to. The only place I
go where I don't take my own coffee is
Italy. I make my own coffee and I start
the day and that's that one one cup that
I make and I get right into usually
that's when I do my most intense
creative work and I love that sort of 3
to four hours if I can get it of just
you know the light changing and bang
into it. I like within 15 minutes I'm
fully into it and just go.
>> When do you consume your first food
typically and what is what does that
meal look like if it's a meal? I always
have something with my morning cup of
coffee so that I I have enough calories
to keep my brain going. And I just I
just grab something that's fairly easy
to eat with with a cup of coffee, a Kind
bar or maybe a yogurt or something like
that.
>> And then I have breakfast with Joanne.
We have a morning when, you know, when
I'm in town, which is most days. I don't
like to travel that much. And once
Joann's up and going, I make her a
latte. We joke that I'm a coffee elf and
I make her a latte and then Joanne
curates stories from, you know, the Wall
Street Journal or from, you know,
wherever and she reads them out loud and
then we talk about them.
>> Is this after your first morning?
>> Usually after first morning. Exactly.
>> Mhm.
>> Yeah. Sometimes we might get up at about
the same time, but most times I'm up
early. And so then I have a pretty a
more robust breakfast and and really
listen to Joanne's curation. And I'm
always just really curious what she
thinks. Could I just add a little
running commentary if I could?
>> Sure, please. So, the first is that I've
noticed this across a few different
disciplines that
as a comparison, Marcelo Garcia,
ninetime world champion in Brazilian
jiu-jitsu, considered by many to be the
greatest of all time, he
is incredibly good at going from
effectively 1 to 10 on an intensity
scale. So even before his finals match
in the world championships, my friend
Josh Whiteskin, who is the basis for
searching for Bobby Fischer, also very
good at this, told the story of them
trying to track down Marcelo because he
was about to be in the final match
>> for his particular weight class. It
might have been the unlimited division.
And they couldn't find him because he
was sleeping under the bleachers.
Yeah, I kind of had to wake him up and
then he walked to the mat, kind of shook
his head and went from 1 to 10. And what
Josh has said,
and Marcelo echoes this certainly in
different language is avoiding the
simmering six. So basically not being in
this simmering
six, but oscillating between rest or
full activation, so to speak. The second
thing I wanted to comment on is the gear
shift to shared activities
>> and biking with Joanne because I have
seen in some of the most successful
relationships that I've observed and
certainly that I'm modeling now for
myself
>> that at some point there's often an
activity shift to focus on what you can
share together. Kelly Starret, very
famous performance coach, PT and other
things, has done this with his wife
Juliet, who's amazing, where he's
shifted from some of the things he used
to do to actually mountain biking. This
is in Northern California. So, just
wanted to make those observations to ask
a very very specific question. You said
you travel with your own coffee.
>> Yeah.
>> I have to scratch the itch. What are you
actually packing
specifically? So I take I pack Pete's
ground coffee,
Arabian mocha java, a cone filter, the
filters themselves,
a water boiler so that you can, you
know, make sure that you have hot water
and and have kind of the whole setup
that way. And then when I start the day,
you know, I I get the whole sort of
system going. And it doesn't really
matter where I am or what time of day it
is. It's actually an interesting thing
because if I'm doing some kind of
session that really requires me to be
absolutely at my best, which I expect of
myself anytime that I'm out there, there
is a ritualistic aspect of it, but it's
also kind of this sense of it doesn't
matter if room service is open. It
doesn't matter any of that kind of
stuff, that opening kind of bubble of
the day. And now if it didn't work, I'd
still be fine because you always have to
be able to like that, you know, if
something just went ary, you just adapt.
But for the most part, you got that
opening bubble of the day. And to be
able to basically replicate that
>> no matter where I am, no matter what
time of day, it could be 4:00 a.m. East
Coast time or it could be 7 a.m.
California time or wherever. Right. It
replicates that morning bubble.
>> Yeah. It's like a bootup sequence that
you're able to preserve.
>> It is. It's a bootup sequence. That's
exactly what it is. And I don't have to
control any variables or wonder like are
they going to have any good coffee or is
it, you know, does room service run on
time or the room service isn't open at
4:30 or whatever. You don't think about
any of that stuff. You just move.
>> So the the particular idiosyncrasies,
eccentricities, I think that's what you
say of successful people, right?
>> Yeah. Their own idiosyncratic encodings.
Yes.
>> Yeah. There we go. And we're going to
really double click on this word in
codings is endlessly fascinating to me.
I have a few of my own and certainly in
what to make of a life which I found
very inspiring because at least in your
cohort and we'll talk about this
>> they did a lot of their best work after
50 after 60 in some cases after 70 and I
am 48 at the moment. So
>> I found it very reassuring that there
were so many case studies.
>> Oh you're still warming up. I'm still
warming up which which is very exciting
on a lot of levels. I did note a few
things. For instance,
>> and I've got lots and lots and lots of
notes that I took while reading the
book. For instance, Allan Paige, former
NFL player, became very engrossed with
running. Woke up every morning at 5:19
a.m. Exactly. Right. 519. And you gave a
list at one point, this is going to be a
pretty odd segue, but you gave a list of
some of the, let's call it, side
passions or eccentricities of different
people. And one of them, a lot of them
were like, okay, okay, sure, I can see
that some of my friends do that. And
then one of them was studying the
occult.
>> And I'm just wondering who was who was
the person. You know, if I want to say
who it was, I would have put it in the
book. But that list was really
interesting because one of the things
that I was very curious about because
our people became really once they
really locked on to a big thing for a
given period of their life as you know
from the reading.
>> I mean they were really really really
focused and the level of intensity and
energy over years or decades or multiple
decades they put into it. And I was
really I was just curious though, did
they have any room for anything else in
their lives or were they just
monoomaniacally obsessed freaks? Right?
And and then I just kind of went through
just a very simple like okay on that
particular dimension did they have
really intense side passions of some
kind even if the big thing was over here
and I think I can remember there was
something like 80ome percent had some
kind of an intense side passion and what
I was struck by is the range of them. Oh
my goodness. I mean, disco dancing, they
the studying the occult, but also like
teaching Sunday school and running and
mountain climbing and some people were
really into just hosting interesting
dinner parties. Others wouldn't have
been interested in that at all, but they
had things that absolutely they were
incredibly passionate outside of the big
thing that they focused on. And I found
that a just an interesting data point
that they didn't make a life where they
had nothing else except the primary
arena of their work to focus on.
>> So let's set the table a little bit and
I apologize in advance. I know you like
to shine the spotlight on other people
and research and data sets, but I'm I'm
probably going to turn the spotlight
back on Jim.
>> Mhm.
>> The bug called Jim.
>> Oh yeah. That's a call back for people
that listen to the first conversation.
>> Yeah.
>> So when we spoke the second conversation
we had,
>> I asked you what was on deck coming up
and you said, "I'm 5 years into research
on self-renewal." And I really like this
term self-renewal. Y
>> and before we go back to Jim, I guess
this is related to Jim, but I'm curious
how you thought about framing this book,
>> self-renewal versus say the title, what
to make of a life as I'm looking at it.
How did you think about
>> presenting this? And then if you
wouldn't mind because we were chatting
before we pressed record. I think my our
first conversation was your first long
form podcast. Yeah. And I believe this
will hopefully be the first conversation
about the new book that comes out. Just
giving a little bit of context or
genesis on on how you wrote it. So you
can tackle it in any direction you like.
In my 30s, I came across a a remarkable
man, a w one of the many sages I've I've
had the joy to be affected by in my life
of John W. gardener who was kind of a
wise man in residence at Stamford
Business School
ameritus at that point just down the
hall from me when I was teaching there
and he'd written a great book a little
book back a number of years ago on
self-renewal and I was very interested
in the question of I don't know why I
was interested but I was just interested
in why would some entities or some
people
have a life of continuous self-renewal
rather than a a life of this followed by
you know just kind of a long degradation
>> peak and then a decline.
>> Exactly. And John encouraged me to
consider doing eventually some research
on the question of self-renewal and I
was off working on built to last and
good to great and I was working on my
company research but I still have my
notes from long conversations with John
about how you might think about
self-renewal and so that seed had sort
of been in there and it was justating
and I thought someday I might return to
that. Then what happened is I started
thinking that that question was always
there like how would you actually study
it and and then
a seed got activated that had been
planted back a decade before that in my
20s.
>> Joanne who you know is so central in my
life. We've been married 45 years and
Joanne was a world-class athlete. She
was world champion in the Iron Man. She
was the first female figure in the
original Nike just do it campaigns back
in the 1980 with Bo Jackson and Howie
Howie Long and she was really
constructed to compete and that sense of
we talk about when we'll talk later
about this being encoded for something
there's just some athletes that they
need to win it's a need they need to win
>> and that was Joanne when she came when
she gave up all these other
opportunities she had in life to focus
on ultimately trying to win the Iron Man
and went in on that. It's like
everything came together and we go off
to Hawaii and she raced in ' 84, 85,86
and 85 she won the world championship in
Hawaii and there was a backstory to that
race which is that Joanne had a
hamstring injury and that hamstring
injury just was chronic and it wouldn't
really go away. And in the race it began
to catch up with her. So, she had this
10-minute lead with 10 miles to go in
the marathon. As you know, it's 2.4 mile
swim, 112 mile bike ride, and 26.2 mile
marathon in sort of 90° temperatures and
80 some% humidity on the lava fields. I
mean, it's just horrendous out there.
And she had a good swim and a great
bike, and she had this 10-minute lead
with just 10 miles to go coming back
into town. and the hamstring caught up
with her partly because it did limited
her training and and you know that was
always there and she began to lose a
minute at a mile and I remember watching
the ABC feed cuz the wet will the sports
truck was in front of her and I could
sort of see the race unfolding. I could
watch it in real time with the camera of
the truck right in front of her and you
could see her starting to lose time like
she's a you know 9 minute lead, 8 minute
lead, 7 minute lead, 6 minute lead like
and you're getting closer and closer to
the end but is she going to get there
before somebody else does and there is
this moment I mean I'll never forget the
moment where she stops in the middle of
the lava fields and she has this
extraordinary discomfort and pain and
she's looking at her legs hoping they
would move. And she reaches down and she
sort of massages them and she kind of
like pounds on her quadriceps and she
looks up to the sky and it almost looked
like she was pleading with somebody to
help her somehow.
And then she just kind of fixed her gaze
on the horizon and there was this sort
of stoic
countenance that came over and she just
like started to move and then she
started to run and she ended up winning
a 10-hour plus race by about 90 seconds.
And it's like one of those things in
life like you have very few experiences
like that.
And then when we got back to Palo Alto
where we lived at the time, you know,
the hamstring just didn't heal.
>> Mhm.
>> And she tried everything. Surgery,
physical therapy, rest, stretching, you
name it.
And eventually she just had to confront
the brutal fact that her athletic career
was going to end at her peak.
And we were sitting there in a little
townhouse in Palo Alto. We're sitting at
our kitchen table and Joanne just one
day she gasps out to me and it was just
one of those moments. It's just like
etched in my emotional memory. She just
gasps,
I feel like I'm dying. And I had no
answer. It's not like you can solve that
or anything like that. It's just I feel
like I'm dying.
And it and in a sense she was right
because that identity as as a world
champion athlete, this thing that she
was so encoded for, that she so
loved doing was being taken away from
her. And in a sense, it was dying, a
certain kind of dying. And that seed
somehow mixed with the John Gardner
thing because what happened is
I somehow sort of fused these together
in my mind. I think that actually
Joann's experience is what gave me the
original interest in self-renewal
because I just didn't have the language
for it. I didn't really see the
connection so clearly. It was kind of
murky. But I think they fused together.
And I realized that one way to study
self-renewal
would be to look at people who go
through what in the book we call cliff
events. These times in life where life
in some really significant way changes
under your feet. Either you choose it to
change or or it happens to you. But
there's kind of a before and an after
and and and your life is so changed at
that time that you have to really
reorient and reconsider. And sometimes
those cliffs like Joann's are really
monumental moments in life. They are
real cliff events. And I thought if I
could find people, if I could study
people at the cliff and I could study
their lives up to the cliff, through the
cliff and after the cliff and how they
come out and how they how they kind of
constructed life after that, I would be
able to have a method for understanding
this thing that I used to sort of think
of as about self-renewal.
And so I just need to fill in a couple
other pieces cuz yeah sort of the
creative journey of how I got here. But
then as you know I always like pairs. I
like to have two entities in the same
situation to kind of set next to each
other. I did that in all my prior works.
And so the idea was wow what if you
could find pairs of people that were at
the same cliff and their lives were
really similar up to that cliff. And
then you look at how their lives, how
they come under the cliff, through the
cliff and out of the cliff. And then by
looking at that, I would understand this
process of renewal out here through this
methodology. And so that's when I
started the whole journey. Now let's
just zoom way out. As I got into it and
I really began I I selected my I had my
match pairs. I had my my people had gone
through these cliffs. I was studying
their whole lives. It was overwhelming
in scale. this project. I honestly
thought at times I might never be able
to finish it because it was just so
monstrously big. But it began to dawn on
me the more I worked on it because I was
looking at you couldn't understand this
cliff out thing if you didn't understand
the whole life. And so I had to study,
you know, from their entire lives,
right? And most of them are deceased. a
few were in their 80s, you know, but but
basically I I had the the record of
their lives pretty much intact. And all
of a sudden, I began to realize two
things. First of all, none of them
thought about self-renewal as like an
objective. And rather what I really saw
were people who achieved what I might
call self-renewal, but that's kind of
not what they were doing. They were
leading their lives. And they were
leading their lives through these cliff
events and in between the cliff events.
and somehow all the way through to the
end for the ones that had passed away.
And I began to realize that what I had
was a huge and rich data source for
really the big question. And and just
just so that you kind of grasp this,
this has happened to me multiple times.
back and built to last which was about
visionary companies and enduring great
companies and all that. Jerry Poris and
I set out our original question was to
study the concept of corporate vision
because it was sort of what would that
be was back before it was something that
anybody had ever studied. And then our
method of match pairs of these visionary
companies over long periods of history
led to a much bigger question which was
how do you build an enduring great
visionary company which is very
different than the smaller question of
what is corporate vision and how does
that work and so repeatedly in my
journey I've started out with what I
think is the question self-renewal
corporate vision whatever and I've ended
up with the method leading me to a much
bigger question that the method answers.
And so in this case, all of a sudden, as
I got deeper and deeper into it, I
realized I'm not studying self-renewal.
Self-renewal is a residual artifact of
really the big question. And the big
question is the title of the book, which
is the question we all face with, which
is what to make of a life. And we face
that question when we're young. You and
I faced it coming out of the fog of
youth. And what I came to grasp is that
cliffs are an amazing way to look at the
question of wrestling with what to make
of a life. Because
when you have a big enough cliff, like
Joannne's cliff, like the cliffs in the
study, you have to answer the question
again,
right? Partway through your life, when
you have one of a a big enough cliff,
you have to answer the question, well,
well, now what to make of a life?
because all that's done or all that's
changed. And then I realized there's a
third time which is when you're in the
later decades of life and many never get
around to answering this question and I
hope they will after reading this is
well now what to make of a life so that
my 50s 60s7s 80s maybe my 90s turn out
to be my biggest most creative most
impactful most interesting years rather
than sitting over here in inferiority to
my younger years. And so I essentially
it's very similar to what happened with
Bill to last with good to great
whatever. I started with a narrower
question. I came up with a method to
answer it and then realized that that
method was actually answering a big
question
>> bigger question
>> and then I just gave myself over to that
question and that's how I ended up
really framing the whole book. And then
as you know, and we'll probably get into
this, the seeds of that go all the way
back to a shattered kid, right? Trying
to figure out life. That is really kind
of the creative journey. And when you
get the book, it feels like God, it's so
it's almost like clearly linear, but you
write that way because you want it to
hang together conceptually,
but the creative journey of how you get
there is wonderfully dynamic. Well, a
few things. So, we are going to get to
childhood for sure, probably sooner
rather than later. And separately, as I
was reading this book, particularly
given the end of our second
conversation, I was really cheering for
you because I am in the middle of a fog
with a draft that is 850 pages long. And
I won't get into that, but I was like,
"Oh, so there can be light at the end of
the tunnel because honestly, I'm looking
at this thing and I'm like, this rock
just seems to get denser and denser. It
gets harder and harder to chip away at
it." So, congratulations. and I was also
very helpful as moral support to
>> me.
>> So are you in the fog on the book itself
or in a general Tim wandering in the fog
time? So I am I would say
in the inverse of where I've found
myself typically before and what I mean
by that is before
>> I would say I have had a lot of clarity
around specific projects. Here is the
book in front of me. Here is the podcast
I am building. Here is the
fill-in-theblank business project where
I would have extreme clarity.
>> Yep. And then in contrast to that I
would say broadly for life direction I
would feel like I had less clarity right
now and I I am quite content with this
for the time being. I have the flip side
which is I'm with a wonderful partner.
We are very clear on where we're headed
together
>> and I feel like that is the Archimedes
lever for everything else. I don't feel
like I have much to prove anymore from a
professional perspective, but I do also
want to end up where you are in the
sense of feeling like you have or in
fact having more energy, more fire
within you at 67 and 37, I do want that.
But on a project level, I have much less
clarity
>> in terms of what does Tim 3.0 4.0 look
like? because I do love the podcast. I
plan to continue doing it, but it's also
become one of the most saturated,
noisefilled playing fields imaginable.
And I think anyone who expects the same
music to play forever
probably does not anticipate the
inevitable, which is probably a cliff of
some type. Right? So, I have a fog as it
stands currently around a few things.
One of which would be writing. M so for
instance this 850 page behemoth do I
chip away at that which I find a little
bit draining to be honest. So, I've
actually put it on the back burner, or
do I say focus on a newer writing
project that I'm very, very excited
about. And is that in fact leaning into
my encodings, which is a term we should
probably define, or is it just the
allure of the novelty of the new? And
guess what? Surprise, surprise, as soon
as I get into the mud, I'm going to
still be paying the taxes that you need
to be prepared to pay. So that is a bit
of a
crossroads at which I find myself right
now.
>> My question for you is so first of all
just for anyone who's listening to this,
we're using the term fog and I'm just
going to put a quick context on that and
then ask a question
>> and so we just talked about the notion
of cliffs and as you you know the whole
study structure was around cliffs and so
forth and and so I I knew cliffs would
play a critical role in how I look at
things. I was really overwhelmed with
the prevalence of fog in the lives that
we studied. That was not something I
expected to find. And fog are these
periods of time where you're kind of
either in some portion of your life or
maybe overall in life at a given point
where you're lost, confused, befuddled,
disoriented, uncertain, right? And
there's kind of these clarity phases of
life. Like I'm in a clarity phase right
now. I was in a fog phase about 2013
2014 certainly in a fog in my 20s.
There's kind of fog phases and these
clarity phases and every person in our
study had these sometimes even extended
episodes of of fog which I found very
comforting in the end because the people
we studied had remarkable lives when you
summed up the entire thing but they
could lose a decade in the fog along the
way. And then in the wake of cliffs in
particular,
there seems to almost always be fog. So
fog can come at any time for a variety
of reasons, but the likelihood of fog
will follow a cliff based on what we
looked at in the study is that if you
have a big enough cliff, especially if
it was unexpected, the fog is likely to
roll in and can be very thick and very
befuddling. So that's why we're talking
about fog. So my question for you is I'm
curious as you are wandering around a
little bit in the fog and I think it's a
very interesting time as you describe it
of kind of well this question of the
things that you'd done up to this point.
Are you ready to be done with them? Are
you are you ready to extend out in a
different direction?
All these sorts of questions that are
swirling about. I'm curious if anything
in the book as you read it illuminated
for you or got you thinking about
navigating through this fog.
>> I would hope so. I took a lot of notes.
So, either I'm a very bad notetaker or
there are things for me to focus on from
the book. So, I would say a number of
things come to mind and I I could send
you photographs of these if if you're
curious at some point. Yeah. But in
terms of navigating fog, I think the
first is
rule number one, don't freak out. So,
and that was more of an interpretation
than something you said literally. But
in effect, like, hey, if you're in the
fog, guess what? Everybody ends up in
the fog.
>> That's right.
>> So, don't panic, number one. And then
there were a few there were more than a
few things but certainly a few things
that I found helpful and also a few
things that gave me terminology for some
explanatory power of things that have
happened to me in the past or things
that I've done in the past and we'll
we'll definitely talk about this but the
concept of return on luck and different
types of luck I found very compelling
>> and thinking of how you take advantage
of or widen the aperture on luck because
I I think broadly speaking luck is
thrown around as something you either
have or you don't
>> and it lands on you and exerts its force
but it's not quite that simple and I
think you put words to that that I found
very helpful and then in terms of
navigating the fog I would say you
talked about simplex stepping which I
think we may spend some time on but I
have I think upstream kind of cascading
questions that I want to ask you about
first principally around encoding.
>> Yeah,
>> I would say that with the fog
there were questions that I began to ask
myself that I've not yet answered and
this is part of the reason I was looking
forward to chatting with you. One of
which is how do I think about energy as
a core currency of life? And the reason
I say that this is not taken verbatim
from the book but it seems to be
fundamental right like outside of
accidents and so on like there is a
point when you die and that is the
sessation of energy
>> and if you have all of the greatest
intentions in the world the best laid
plans if you do not have the energy to
implement those things to execute
>> I don't want to say all is for not but
you're caught at a bit of a problematic
situation so when I'm reading about
these different case studies, these
profiles in the books and there were
there were so many fantastic ones. I
really have to say I love the Katherine
Graham
>> piece. Hard to love Katherine Graham.
>> Hard not to love because you see people
who are put into say cliff situations
and they are unprepared and then there
are counterex examples where people are
effectively have prepped for 10 or 20
years for the cliff they eventually face
and those are very very different.
>> Yes. in a lot of ways. And you also,
not to keep burying the lead on this,
have people who sort of methodically
find their encodings. And I want you to
distinguish that from strengths. You
have people who are forced into a
situation and thank God they just happen
to have an overlap with the
circumstances forced upon them and these
inner workings that allow them to find
their stride. as if you know Michael
Jordan was sent to like basketball
prison camp and like lo and behold what
luck you know he happens to be
incredibly good and and built for
basketball. So my question for you that
I want to hit on before we dive in if I
asked Joanne
why does Jim have more energy now than
he did at 37? How would she answer it?
because it seems to me like there might
be a piece of honing in on encodings as
a wellspring of energy, but you seem
like you've always been pretty good at
that, at least after some of your
experiences at Stanford. What would her
answer be, do you think?
>> Years ago, there was a profile being
done on me, and I I'm not big on a lot
of profiles. I'd rather just have people
read my books and take away the ideas.
But anyways, the profile was going to
happen. And so I said, "If we're going
to do it, we'll do it right." and I
invited the reporter out to Boulder and
he said, "I'd really like to spend some
time with Joanne." And I'm like, "Oo,
okay, here we go." And what kind of
profile is this going to be?
>> So, we're at breakfast and he says, "I
have one real question I really want to
ask you." If you just pick one word to
describe what it's like to live with
Jim, what one word would you use? Okay.
So, you got a picture.
I'm sitting there waiting for the answer
and I I'm wonder, you know, always an
adventure, inspired, energizing,
creative, right? All these things are
going through my mind as possible. She
gets one word and after a long pause,
she just kind of looks at him
completely, completely serious,
completely just straight, you know,
single answer, exhausting. You know,
it's hilarious cuz I knew that word was
coming. I like And that's me projecting.
I'm thinking about my partner. That's
hilarious. I literally in my head have
exhausted
>> exhausting.
So she would relate to the question.
I think what she would say is that yes,
I've always had a high energy set point.
And just as an aside, it's not something
I think I even put in the book, but the
way I came to think of it is that we all
have kind of an energy set point. And
maybe mine is just a reasonably high
energy set point. And just to be clear
though, I think that the thing I would
want people to take away from what they
read here is that whatever your energy
set point, you know, you can have
variation around that set point and and
the question is how do you lead your
life in such a way that you're on the
positive side of that variation in the
set point and it sustains until you run
out of breath. Because so many what
happens is they reach a certain point
and they go below the energy set point
because of whatever sets of reasons and
end up with maybe 20 or 30 years of
their life essentially off the table and
that's an unfortunate loss to the world.
I think Joanne would say one, I'm one of
those people who
really set out in life somehow to end up
expending my energy in things that I
derive tremendous
intrinsic
pleasure from doing the actual doing of
it. M
>> that sense of if you're doing it, you
can't not do it right. Like I like you,
I don't have to demonstrate that I can
do well at what I do. I don't have to
worry about do I know how to I don't
know have a teaching moment or whatever,
right? How to come up with the right
questions to ask somebody running a big
company. But if I sit down, I still get
joy out of preparing for a a moment or
being at it or or just a sense of
excitement that morning because the
actual doing is something that I so love
that I put in the book and Joanne is the
one that helped me sort of see this. I'd
always thought of myself as an
incredibly disciplined person and
everybody else saw me as really
disciplined and I kind finally came to
the conclusion I'm really not very
disciplined. I mean, I am somewhat. But
look, if you just can't help, you just
can't stop yourself
>> from preparing, from getting ready to do
the very best you can because you're
doing something that just so pulls it
like you can't stop yourself. Well,
that's not discipline. You're just
compelled. You're just it's it's almost
a form of compulsion, which isn't
discipline, right? and and if it's sheer
love of the actual doing itself,
well, how's that discipline? Just love
doing it. So, that's one. But I think
she would also say that like you love
having a big project and this has been a
huge project, right? So, for 12 years
from the time I first started noodling
on this till when I finally finished the
writing, when I wake up in the morning,
I don't have any question until the
book's done. Maybe I'll go into a fog
now. I had no question what was in front
of me at 4:00 a.m. There's always the
project, right? Every single day there's
the project and that's energizing even
if it's huge and monstrous. And and then
the third is this sense of extending out
and circling back that that I saw in all
the people in the study of that this
really interesting it'll be very
interesting to see for you as well as
happens with this with this sense of
this notion of kind of radical
reinvention isn't really what we saw.
There weren't people who quote radically
reinvented themselves. It was this
organic process of kind of extending and
pushing themselves out into new modes or
new things or new activities etc. Kind
of an extension outward. But then they
would always find a way to circle back
to things that they had built upon
previously as almost a form of fuel to
further extend out. Robert Plant's one
of my favorite people in the study and I
love how over the, you know, what keeps
him so full of fire for music and for
singing all these decades later. And if
you look at him, he's like, you know, he
sure he's no longer in Zeppelin. He
doesn't need to be. He's he was
extending out into bluegrass and he was
extending out into, you know, going off
to the desert and playing with trans
musicians and all these kinds of really
and learning to blend his voice with
Allison Krauss. I mean, utterly
marvelous extensions with Allison Krauss
or with some of his extensions. He'd
come back and rebring to life a Led
Zeppelin song.
>> Mhm.
>> And then they would do a bluegrass
version of Black Dog and just that sense
of this extending and circling back.
Well, this study for me, you could look
at it as I'm doing something radically
new. Yes, it's a new question, new study
set, all that. But I'm also circling
back
and to what I've always loved to do,
which is to take a big giant messy
question,
put a methodology around it, and spend
years figuring it out. Right? That's
consistent. That's a circle back. The
extendout is it's a different question
and different unit of analysis. So, as
both. And then the last is this, and we
talked about this, I think, a little bit
in one of our previous ones, but I would
really put it this way. When I was
younger, I had a lot of fire, but it was
really painful fire.
It was burning hot red molten lava in my
stomach.
Almost like channeled rage, chneled
ferocity.
>> Yeah, I know the feeling.
>> Yeah, you know that feeling, right? And
I used to worry that if I ever lost
that, I'd lose my drive.
And I think what's happened, I know
what's happened is the fire's changed.
The fire used to be like this molten hot
burning ferocity in the belly. And now
it's like this. It's not red. It's I
think of it as green and yellow and it's
like this sustained warming glow. And I
don't have that. I do not have those
kind of insecurity. prove myself kinds
of things that are driving me
and as a result my energyy's gone up and
I think that because the fire is
different because the fire is this
sustained warming glow it is just like
constantly generative and I think that's
a really really big part of it that
sense of like you write a sentence and
you look at it and you go wow
that's almost a good sentence
>> so let me ask you about
color shift, right? Going from the red
to the greenish yellow. Yeah.
>> Is that a byproduct of age in the sense
that you've amassed a corpus of work
that at some point you cannot with a
straight face to yourself justify being
redot because you're like, look at this
CV. I cannot with any sincerity say that
I have anything left to prove. Is is
that what provoked the shift? Is there
something else? What what actually
happened that led to that shift in fuel,
so to speak?
>> First of all, I would imagine that a
number of people and maybe you yourself
relate to the raging burning lava coals.
>> Oh, yeah. Oh, boy.
>> And you kind of cling on to them because
you feel you need them. And I guess I'm
just a data point of one that I don't
need them to have even more energy. And
so there is life without them that's
really wonderful. and your best stuff,
your best work coming from it. I don't
think it was, oh, I mean, it's nice that
Joan and I don't need to worry about
like are we going to hit the pavement
like having no safety net and all that
kind of worry and fear that we used to
live with of just genuine almost terror
of are things going to work.
>> So, it's nice to not have that, but I I
don't think that's the essence of it. I
think it didn't happen like a flash.
I think what a lot of what really
happened
happened as a result of studying the
lives in this book. I really mean it.
the last 12 now plus years since I
started the first nibblings of this
project in 2013
and the journey of doing this book so
transformed me and I think that I was
probably prepped for that but it was by
somehow living alongside them in their
lives it was like affecting me and I
think one of the ways it affected me is
was I saw them you just look at the
sheer rapturous joy of Robert Plant
blend ending his voice with Allison
Krauss.
Or you look at that this wonderful video
I came across of Grace Hopper, the great
computer scientist who invented software
essentially. It's amazing story. Silicon
Valley should know her story more. It's
really an incredible story. And she's on
Letterman at I think age 79. And she is
like one of the most sparklefilled,
firefilled. She just radiates out of
that Letterman interview. And it's just
absolutely marvelous. I could just go
through case after case where what I saw
was, you know, Barbara Mcccleintoch
solving the geneticist solving a
genetics puzzle and and her sense of she
didn't fear dying in a car crash because
there were all these car crashes that
she was driving across the country so
much as she feared dying in a car crash
before she'd solved the puzzle that she
had, right? Cuz she just so needed to
solve the puzzle. And every life was one
of these ones where it's like they got
to this point where the thing that they
were engaged in in doing was so
reinforcing in itself for itself.
And I think somehow just being so close
to their lives while I walked through
them had this effect on me and it began
to soften me. It's very hard to explain,
but if you spent years alongside them at
each step of the way through their
lives, which is what I did,
they like rubbed off on me.
>> Mhm.
>> And they all somehow got to this point
and I think that it just affected me. I
mean, I can't really explain it and
other than that is it just affected me.
>> Mhm. Let's look at another facet of this
same prism because looking at for
instance whether it's you whether it's a
geneticist or any real figure in the
book that you've profiled finding your
power zone with respect to encodings and
I want you to differentiate that from
strengths seems at the very top of the
pyramid in some respects or the base
depending on how you want to look at it
But if we're trying to put dominoes in
order, that seems like a very important
domino to tip over first.
>> It seems to be a prerequisite for a lot
of the other things. And I'm wondering
if somebody flew out to spend time with
you for a day and they were like, "Jim,
I know you're good at asking questions.
That's what you do. How the hell do I
find what my encodings are?" Because
without that, it seems like having the
conviction to know when you wake up
exactly what you're going to do becomes
a lot harder. And I'm not trying to
speak for you, but it does seem to me
that if you are always suffering from
decision fatigue, paradox of choice,
man, that's a great way to use up all
your chi and end up dead before you
should be. I mean, creatively or
physically or otherwise. What are
encodings? If they're different from
strengths, how are they different? And
how do you find them if you're not lucky
enough to be like a Yo-Yo Ma who gets a
cello handed to him when he's four or a
Tiger Woods whose dad's like here you go
buddy at age god knows whatever right so
we should go back and forth on this a
little bit because there's kind of two
strands that will come together and I
think they're for me were really
>> really really eye opening and very
uplifting in the end by looking you know
the study across these lives because
there's the luck piece of kind of how
the roulette wheel of your life spins as
to which encodings you discover.
And then there's what the encodings are.
They're actually kind of joined, if you
will, as an idea. We have multiple
examples in the book of where people it
was almost like by well chance in some
ways that they discovered the set of
encodings that they that they decided to
dedicate themselves to.
>> So first of all, let's just talk about
encodings. I'm going to describe what
encodings are and how they kind of work.
But if you don't mind, Tim, given that
you're in the fog, I want to ask you a
question about encodings for yourself.
>> Love questions.
>> Encodings are these kind of durable
capacities that reside within and
they're awaiting discovery through the
experiences of life.
And first huge thing about encodings is
most of us our lives will come to the
end with probably vast swaths of our
encodings never discovered.
And the way I think about it and and you
know this from the book but I really
like to help people who are listening
hear this is that I came to think of it
as like a constellation of encodings.
They're just you have a constellation of
encodings. I have a constellation of
encodings. Everybody on the planet has a
constellation of encodings. And it's
like a vast galaxy of encodings. But at
any given moment, your life is looking
through like a window frame at those
encodings. And that what happens is that
there's points in life where the window
frame, right, captures a set of a big
bright set of those encodings coming
through the window and you're kind of in
frame with them. And then if the window
frame shifts again and doesn't capture
very many encodings, you're kind of, if
you will, out of frame, you're not
really capturing many encodings. the
encodings are still there, right?
They're they're just there, but the kind
of your life can shift around whether
you're capturing a set of encodings or
whether you're really not. So, I think
about the test pilot John Glenn, who you
read about, and how he was not capturing
encodings when he was a young man. At
first, I mean, his parents thought,
well, maybe he'll come into the family
business or, you know, maybe you should
go try to be a doctor. But he just
wasn't I mean, the encodings were not
really in frame when he was like taking
chemistry and physics and things like
this. And then through a a happen stance
event, he was able to get a pilot's
license paid for by the government that
was looking to train some pilots. And he
goes and he signs up for this, convinces
his parents to let him do it. And the
moment he gets into an aircraft, it was
like
click. I mean, the way the aircraft
felt, eventually being able to wear the
aircraft like a glove, his encoded
ability that he only discovered, he
didn't add it. It was just there, that
under extreme danger and immense speed,
he could have a heart rate that is, you
know, everything slows down. If
somebody's flying behind me in a
supersonic jet trying to knock me out of
the sky over Korea in the Korean War, my
heart rate's probably not going to go
down. But John Glenn's would go down,
right? And then of course he becomes an
astronaut. Gordon Cooper is match pair
very similar. And so it's all of a
sudden bang. And then after his career
that came to an end. Very interesting
little story of how he thought they
finally concluded that John Kennedy had
pulled him out of the rotation so that
he wouldn't be able to go to the moon
because Kennedy felt he was too valuable
as a national hero. And so he couldn't
be an astronaut anymore really. And that
was his cliff. and 10 years and he went
off to Royal Crown Cola. And what I love
is this little detail where he's got of
his memoir, his time at Royal Crown Cola
is like almost 10% of his life and it's
0.2%
of his memoir.
>> Not much to report here.
>> Exactly. Exactly. And so he's still John
Glenn, but what happened is the window
frame shift shifted and it wasn't until
he got back into the Senate where it
shifted again. You know, he I'm sure he
was an adequate executive, but it wasn't
like when he was flying fighter jets and
>> going up and orbiting the Earth, right?
He was now kind of out of frame.
>> Yeah.
>> And so the essence of it is encodings
are there to be discovered by the
experiences of life.
And when they click into frame, it's
trusting them almost if you don't know
where they're going to go. In many
cases, the people didn't know where they
were going to go. And
yes, you turn encodings into more
strengths by training and discipline and
you know, all those sorts of things. But
John Glenn could have done 10 MBAs
and he would have never been as encoded
for being a business executive,
>> right,
>> the way he was encoded for being a
senator and encoded for being a fighter
pilot and an astronaut. And so the key
is
discovering some set of them and letting
them letting them go. And that's an
empirical set of observations. So now I
come back to the question for you.
you've written.
>> I mean, you clearly have encodings for
doing what we're doing today.
You have other kinds of encodings around
just sheer curiosity and so forth. So
have you thought about this as you were
making notes as you were thinking about
what are your encodings
as distinct from sure you've turned your
encodings that you've discovered into
strengths but the things that were
really have a basis of of encoding
coming into frame I'm curious what
occurred to you and especially as you
think about like what's going to be next
>> all right I'll return serve so I'll I'll
then have a ton of other questions But
I'll answer that in a maybe a bit of a
roundabout way. I have tried to ferret
it this out before for myself. I think
with different degrees of success. I
think I have in most cases because I
assume my self-awareness is very
imperfect at best
>> benefited from asking other people
questions who are very close to me. And
those have been
coaches, agents, friends, collaborators,
almost like a 360
degree kind of analysis. And some of
those questions have included,
when have you seen me at my best and
when have you seen me at my worst?
Right? What do you think I find easier
to do than other people? These types of
questions. And I suppose where I've
landed, but let me postpone the
punchline first to say that
I've really found it fascinating to look
at, this is going to be seem like a hard
left to people, but the sort of Soviet
and also Chinese approaches to sourcing
athletes.
>> How on earth are they so successful? How
were they so dominant for so long? And
yes, you can explain some of it with
kind of top- down autocratic
decision-m and policym and so on. But in
China, for instance,
they will scout by doing some very very
simple things. They'll go to every
elementary school you can imagine and
have kids do a broad jump, right? And
they'll make it fun. It's not some kind
of back whipping exercise, but they'll
have them do a handful of things. Hold a
broomstick overhead and get into a
squat, right? And that's how they start
to source potential candidates for
>> Olympic weightlifting gold. But
unfortunately, as a single person, as an
N of one, you don't have the luxury of
infinite time to try everything, right?
This has been an ongoing open question
for me and I haven't yet used any of
them, but looking at things like, okay,
well, is is a strength finder test
helpful for this? It's like could you do
five or six of these and look for the
overlap to try to get some direction so
that you're not penalized for trial and
error by losing decade after decade.
Where I've landed for myself is
through my own experimentation, I think
asking a lot of dumb questions. I'm very
good at asking seemingly dumb questions,
which often are not dumb. Sometimes they
are just straight up dumb, let's be
honest. But often times they're
questions that could be or already are
on the minds of a lot of people. And I
think I'm good at putting on beginners
glasses and being very persistent like a
dog with a bone if I don't get an answer
to a supposedly dumb question. And those
lead interesting places. I think I am
also good and this is a blessing and a
curse which will lead into some later
questions about not getting trapped in
various doom cycles and something we
talked about before which is sort of the
50 3020 from respected faculty.
I am a novelty seeker that's an
intrinsic drive that I have in a lot of
ways and the upside of that is that I
can do angel investing in in different
industries. I can interview people from
yet a different set of worlds
and I can borrow practices and copy and
paste different principles from one area
into a disperate area and sometimes
those really really work. So I think I'm
good at combining those worlds
separately and maybe people listening
can give me feedback if they're
interested in this. A friend of mine,
one of my closest friends said to me,
you know, you should really do some
podcast episodes where you are recording
conversations that you have with
founders because I've I've invested in
100 plus companies over more than a
decade, probably close to two decades.
And he said to me, he's like, "There are
things that you are really good at that
I don't think you realize you're good at
in terms of really pinpointing terms,
positioning,
and various other things that I do
routinely every week with startup
founders anyway. I'm having those
conversations anyway." And so I've been
experimenting with recording those.
>> And I even go back and listen to it and
I'm like, "Yeah, I don't think there's
anything special in here." And he's
like, "That's the problem." He's like,
"You don't think it's anything special
because it's so easy for you." He's
like, "It's actually not easy for most
people." So, those are a few scattershot
thoughts that come to mind, but for
myself and certainly also for people
listening, I I am still wondering if
there are ways that people can
facilitate the process of finding those
encodings. So I was listening very
carefully to what you're saying and a
couple things really popped into my mind
as as you were you were talking is that
first of all I think if we reround well
I did rewind the tape of their lives
right and you know I wouldn't describe
that the process of kind of coming into
a frame with a set of encodings was a
systematic process it was pretty organic
and pretty messy if you will and I think
the thing that really stood out is it
wasn't that there was some kind of you
know deliberate test taking or anything
like at it was that light kind of spun
them into a situation where
they could feel the the encodings kind
of light up if you will. And I think
what really stood out the more I think
about this the question is less about
well there are two ways in which I want
to kind of sharpen the question a little
bit for you. One is is that it's not
even entirely about discovering
encodings. I think people are getting
clues to their encodings based on their
experiences in life and input from
others, which is a very interesting
piece of this all the time.
>> What I think really stands out to me
about the people that I studied is that
regardless of whether they got support
from others, like John Glenn's parents
didn't want him to be a pilot and they
wanted him to be in the family business
or be a doctor, Robert Plant's parents
didn't want him to be a singer, they
wanted him to be an accountant. Think
about that. I mean with all that I mean
you know you go through these these
different ones. What really stood out is
that when they got a sense for them they
trusted them. It was their trust of them
when they got a glimpse of them. That is
what really stood out to me. They once
they felt them they didn't really start
questioning them or let other people
talk them out of them or listen to what
other people think they should do. And
so if you said Jim 100 points allocate
between two buckets. How much of it is
about discovering a set of encodings and
how much of it is it about trusting the
encodings you've discovered? I'm going
to put 70 points on trust because I
think we're getting clues all the time.
The second is that you said something
about asking people what you think you
do better than others.
>> This study changed my view on that. I
think it's about doubling down on what
you can do better than other ways you
could expend yourself.
>> Mhm. which is a very different question.
>> Yeah, it's very different. It's a very
different question. It's like I could
expend myself asking these supposedly
dumb questions or I could expend myself,
you know, in some other way. And it's
not competitive comparative to others.
It's this is in frame and this is out of
frame. And then I have learned something
in my own experience. This book is not
about business. It's not about
leadership. It's not about management.
There's a few ways though that it's
really affected me a lot when I think
back to my prior my classic work and one
way that it has really affected me is we
talk about the right people on the bus
from good to great still true but what
I've really come to see is it's about
the seats and whether people are in
seats where they're in frame in that
seat whether they are in a seat for
which they are encoded for that seat and
in a seat that feeds their fire and As I
began to study the people in in my work,
what I found is that they gravitated
towards some walk of life, some arena of
activity where they really hit a big
bright set of their encodings. It really
fed their fire and then they just kind
of went once they kind of clicked into
frame. And I think that I used to spend
a lot of time trying to turn people into
what they're not and feeling very
frustrated with what they're not. And as
I did this study, one of the things that
just really went over me like water and
like just softening me and softening me
and softening me is I began to realize
that what I really had to learn how to
do was to begin to find
what the people around me what their
encodings are. me for people on my team.
Part of my responsibility as a leader of
a small bus is to really be attuned to
me observing the encodings based upon
what people do of the people around me
and then to begin to shift in steps
their responsibility so that in what
they're doing here is increasingly
clicking into frame so that then what
happens is my emotional experience is
not being frustrated with what they're
not and truly being almost at a level of
almost awe grateful for what they are.
And when that happened, their lives got
better, my life got better, and I played
a role in helping them discover their
encodings, mainly by experiments, like
testing them with something, see how
something works, right? And then I could
see the encoding flash, and then I'd
move the responsibility, and I'd click
them some into frame. And it's been a
marvelous joyful journey to see that
happen. And I have people who are in
frame and they just it's astounding for
me to see. And so I think that notion of
other people, but I'd flip it around
which anybody who has teams,
anyone who leads organizations or
companies,
if you spend emotional energy feeling
frustrated with what people are not,
you've got them in the wrong seat.
They're out of frame. And the question
is, if you have a bus issue, you deal
with it. they're not they shouldn't be
on the bus. But the real question could
be you have them in a seat for which
they that doesn't line up with their
encodings that doesn't feed their inner
fire. And if you try to spend your life
trying to turn them into what they're
not, they'll be miserable and you'll be
miserable.
And I think you other people can really
play a role in helping you see what
those encodings are. I've had number of
friends who run large companies who and
not not to say this is the right tool
for everyone but who've used any
actually as a sort of huristic.
>> What's your point on the anagram?
>> Which type am I or what's my perspective
on it?
>> Both.
>> Have you identified an anagram point for
yourself?
>> I'm a self-preservation six which
>> honestly
>> I'm married to a
>> There you go. It resonates for me. I
have a bunch of caveats that I'm about
to put out, but it resonates for me. I
have found it to greatly inform doing a
post-mortem on things and people who
have not worked in my organization.
Organization is a very high flutin term
for a very very small team and people
who have worked over time. There are, I
would say,
to my mind, irrefutable patterns. Like,
it's so clear the types that work and
the types that don't. And there's no
right or wrong. It's just for me as a
strong willed, hopefully decent leader,
but at the same time very demanding
person with certain preferences and so
on. There are certain people on the bus
who work and certain people who don't,
and anyagram I found very helpful for
that. I think Shopify and Dropbox both I
think still use enagram as two examples
but very good for conflict resolution as
well. The the caveat is sometimes I
think at least say in Silicon Valley
that anyagram is an acceptable horoscope
for tech guys. Um,
I mean it definitely rhymes in some
ways, but when I read my particular
and it's helpful to have a person who is
experienced with typing do this. I'm
sure there are online tools that can
also help. Side note, also found this
incredibly helpful. People are going to
hate this. Some people are going to hate
this, but for thinking about dating and
ultimately ending up with a woman who is
an incredibly incredibly good match for
me and vice versa, I'm a good match for
her,
>> but the enagram was dead on. I was like,
this is nonsense for the like I just
don't believe it can be that simple. And
it's not that simple, but incredibly
helpful. So I would say there are some
people who go down the rabbit hole to an
extent that I think ends up turning
everything into an enagram exercise. I
think that's probably losing the forest
for trees. But as one input of many,
I've I've found it helpful. And let me
ask you a question for for you
personally, and this could also be
reflected in people in the book, but for
you, this is one of the 7,000 highlights
I had from this morning over my several
cups of coffee.
>> So, this is I I can't recall if this is
from our first or second conversation,
but let me just read for a second here.
All right. Well, here here's the the
recap. Jim was clear that he didn't want
a half-life of quality in his work. I'll
skip forward a little bit. When he was
invisible at Stanford, he could do deep
work and long cycles of reflection for
six years. He worried that if he became
visible, he might wake up years later
and realize his subsequent books were
only half as good because he hadn't
returned to the wellspring of quiet
solitude.
>> Yeah.
>> Separate note, people should listen to
these conversations, but one of the
commonalities of your plus two days in
your spreadsheets were either, I
believe, intense solitude or highly
socialized, but very little in between.
All right, coming back to what I was
reading. He wanted quality to get
better. Here's the part that I
underlined. He asked respected faculty,
this is at Stanford, how they spent
their time and got a consistent answer.
50 30 20.
>> Yep.
>> And to elaborate on that, it's pretty
simple. 50% equals new intellectual
creative work. 30% equals teaching. 20%
equals other stuff, committees, etc.
>> Yep.
>> Okay. And you organized your life and
tallying things. I do still to this day
>> and you still do that. So people should
listen to our prior conversations on
that. But this 50% new intellectual
creative work, 30% teaching, 20% other
stuff, committees, etc. And this might
feed into the going to screw up the
exact terminology, but the sort of doom
cycle of competence or or whatever it
might be. What I found is one of the
penalties of being a novelty seeker is
that sometimes I will get pulled into
things that I am quite good at. They
could be new, they could be older, that
do not align super strongly with my
encodings, right? Y and so the days end
up being very choppy. In other words,
I'm doing a lot of management stuff.
Maybe I've said yes to a speaking
engagement I regret. Maybe I've invested
in a few too many startups and all of a
sudden I'm on Zoom calls when I'm
quietly grinding my teeth because I feel
like I should be working on a book
project etc etc. And my question is a
have you ever succumbed to this type of
gravitational pull to other things where
you end up kind of managing more than
making perhaps
>> and then separately if that's true how
have you corrected course
>> there's kind of two aspects of how I
have really struggled getting pulled
first of all just way earlier in my life
I I was very close to you know I was
getting pulled into things that I was
not going to be coded for. And
fortunately, by a series of really good
events and choices, I ended up very much
in frame. But if id stayed too long
doing some of those things or taken some
opportunities that were very glittering
opportunities that my life may have
taken a very different path, I think I
would have ended up successful and out
of frame and I think that that would
have been an unfortunate outcome. I
think that so the two areas that I've
had to work with and I eventually
finally got my way to both to succeed at
both of them. The second one was harder.
First one was that you're right about
that thing about visibility.
I was always prepared for failure.
I was not prepared for success.
>> Yeah.
>> And when success came, it surprised me.
Number one, I was like, you know, okay,
I was prepared for the catastrophe on
the other side. I didn't expect this to
be coming and now I got to deal with all
this stuff coming at me. And all of a
sudden you have all these wonderful
things. Some of them maybe not so
wonderful, but they're all coming at
you, right? And you have all these all
these voices and and people and
opportunities and glittering things that
that could pull you out of what you're
really encoded for because of all this
wonderful opportunity and noise coming
at you. And early in that sort of
reeling from the su I was in sort of a
fog of success phase and I was I was
really trying to sort through like how I
would allocate my time and I was kind of
reeling on my back feet and I would say
yes to things that later that today I
would never in a million years say yes
to but I did whether it be involving too
much travel or whatever sorts of things
but I began to realize man my whole life
could be sucked away accepting
opportunities and so I had to really
fight that and to eventually just kind
of clamp it all down, but to do it in a
really systematic and disciplined way.
And that's when I started counting my
hours, right? I basically just like I
got to have above a thousand creative
hours every 365 day cycle every single
day looking back for 50 years without a
miss, right? I just set that I will not
ever break it. And and then the other
was to begin using very very disciplined
mechanisms for what I would say yes to.
We have a punch card system as something
that I, you know, was very impressed by
Warren Buffett's view of the world,
which is, you know, any use of you is an
investment. It's a punch and you can't
get it back. And so when we're laying
out for the year what sorts of things I
will say yes to, we literally have every
year we we will be talking, well, what's
the punch card look like? How many
punches are left? And it's not a
question if somebody calls up and says,
are you free to give a speech on October
17? It's irrelevant whether I'm free to
give a speech on October 17. The
relevant question is do I have any
punches left? That's the first question.
Or how many punches are left? And we
limit them. We limit them tightly. And
so that became another way of like it's
punches. It's punches and they go away.
And one thing I've learned I've come to
see now at age 68, life is the ultimate
punch card. I mean, think about it,
right? So you're 48. If any given
goodsized project is call it a five-year
project, you got a bunch of fiveyear
punches left. I'm 68.
I probably have really good health, but
I know the number of punches that I have
left is a lower number than yours. And
and so life is the ultimate punch card,
right? And if you end up spending 5
years or 10 years,
you know, pulled away from what you're
really encoded for in some way because
of whatever sets of reasons, you can't
get that punch back. And so I began a
punch card process and that's how I how
I managed that. But then the other goes
back to what we were talking about
earlier.
>> Could I pause for one second? Please
don't lose your train of thought. But
for the punch cards, are those on a
category bycategory basis? In other
words, or for example,
>> speaking engagements, I'll only do five
speaking engagements per year. They need
to be within X number of hours of my
home. Is it on a category bycategory
basis?
>> The way we've done it, it's taken us a
few years iterating on the exact
process, but every week we calculate the
punch card. And the way it works is we
have a point system. And the way the
point system works is,
you know, if I'm going to do an
engagement that involves an airplane,
it costs more points. If I'm going to do
a virtual presentation from here, it
costs fewer points. If I'm going to do
an intense, we have these lab sessions
where people bring their executive team
to Boulder for 2 days and be essentially
grilled by me for two days. If it's
going to be one of those, that actually,
even though it's in Boulder, it actually
takes a fair number of points because
the intensity of it is so high. And so
what we've done is we've kind of
basically kind of use a numerical sense
and then in any given period of time
there's only so many points. So if I end
up agreeing to do a commitment in
London, I'm just going to blow like the
equivalent of three punches.
>> It's like a reverse frequent flyer
program.
>> Oh yeah. Exactly. Exactly.
>> You just get points subtracted.
>> Exactly. And so that's how we do it. And
then we always have a running kind of
what the total of the punch card is. And
there's, you know, it doesn't have to
hit the exact number at a given time,
but you can't start going over. It's
okay if you get to the end of the year
and you haven't spent all your punches.
What's bad is if you get to the end of
the year and you did twice as many as
you should have. And so our
conversations are always everything is
in the context of where's the punch
card? Like there's only one and a half
points left on the punch card.
>> So when you and your team are turning
something down because you're lower on
points.
>> Well, we turn things down sort of all
the time. Do they say we're very sorry
but Jim is out of points or do they say
sorry Jim has reached his maximum a
lotment of commitments? Actually it's a
real question. What is the language that
you use for those polite declines?
>> So first of all I have absolutely people
totally in frame doing things that
they're incredibly encoded for. And one
of the people on my team is a person who
is incredibly encoded to build
relationships and make friends and to
learn a lot and then to help me think.
And this person who's been with me now
for quite a number of years. What she
does that's so marvelous is that
everything begins with making a friend
and building a relationship in
everything we do. And as part of that,
we're always thinking ahead to the fact
that we're likely to say no. And all
just statistically, we're almost
certainly likely going to say no to
almost everything that comes through.
And so by establishing a relationship
and friendship and setting expectations
right out of the gate, the odds that Jim
will be able to do this are very, very
low. You should know that at the very
beginning of this conversation. So,
we're thinking ahead to preserving the
sense of relationship when we say no
from the very beginning of how the
conversation begins. And then this
person helps the person on the other end
understand Jim has a punch card
and so that he can focus on his research
and his writing. It's a limited punch
card and I have to set expectations that
there just aren't very many spots on it.
And then once we've sort of established
all that then there's a conversation
about what what the event is, what the
invitation is, etc. And then we have our
conversations and then the communication
will come back as in most cases a no, a
few cases a yes where we will say, you
know, we're unable for Jim to be able to
join you. Punch card constraints. And
that's just very real. But they've been
prepared for that right from the get-go.
Because we want people to walk away
feeling better, no matter what answer
they get, we want them to walk away
feeling better about us than before they
ever reached out to us, even though
they're likely to get a disappointing
answer. And then in some cases I will
follow up. Not all cases because I
couldn't do it for all but for some I
will personally record a voice memo for
the the person expressing my
appreciation for for what they're doing
and for the invitation and sort of try
to close the whole thing out with a
sense of I want them to walk away and
say that is the most wonderful
disappointing answer I've ever received.
>> I love that. Fantastic. Very very
helpful. By the way, the 850 page
monster that I was describing
>> shouldn't malign it by calling it a
monster.
>> Oh, no. All books are monsters.
>> Yeah. Okay, there we go. Right. My
little pet monster. Maybe it's more like
a monster from Monsters Inc. as opposed
to like a a Kraken. But it's entirely
about how to say no. And that's a simple
way of putting it. But turns out just
like I think what you realized with what
to make of a life. I can't remember if
it was Emerson who said this. Of course,
I want to call it Emerson or throw, but
you know, whenever you try to isolate
one thing, you find that it's hitched to
everything else in the universe.
>> Turns out that saying no is related to
saying yes, which is related to
decisions, which then you're like, [ __ ]
now I have to talk about everything in
life.
>> So,
>> pardon my French, but thank you for that
answer. I would love to come back to a
few things you said, which can one quick
thing out, which was you asked about
this notion of dealing with the staying
on track, right?
>> And and not getting sex. I'll just very
briefly, we talked earlier about right
people in the key seats. Are they
encoded for it? When they're in frame,
you're grateful for what they are. I
used to a lot of getting knocked out of
frame was trying to manage
my small system and I did a pretty bad
job of it. Took a lot of my energy. What
changed is once I got really good at
people in seats for which they're
encoded, my time and energy that goes to
that has shrunk to almost nothing. in
terms of that extraneous angst and
replaced with just the joy of working
with my people. So I think that's the
second answer is go all the way back to
first two from good to great. It's
always still first two and especially
with people in key seats for which
they're encoded. So enough on that.
>> So let's let's double click on that
actually before I hop to where I was
going. I'm imagining and maybe this is
not the right way to think of it but if
you have a small team like I have a very
small team three or four people in terms
of full-time
I suspect you have at least if we're
looking at broader corporate America
let's say you have a small team
>> yes absolutely
>> and you can run some trial and error
>> y
>> once you get up to 100 people a thousand
people 10,000 people maybe the trial and
error becomes a little harder to
systematize but even on a small scale
one could make the argument that you
have fewer players on the chess board,
so you also don't want to chew up too
much of their cycles with endless trial
and error,
>> right?
>> Are there ways that you have thought
about
making that process as fruitful as
possible? You're like, "Hey, there are
five types of tasks. I'm going to have
everybody do trial and error with five
types of tasks, and that'll help us hone
in quickly."
I'll stop there.
>> First of all, I just want to comment
something about scale. two aspects of
scale. The first is this.
Never confuse
scale of impact with scale of
enterprise.
>> Yeah.
>> You and I are like a special operations
team,
right? A small special operations team
can have an immense impact with six
people in the unit.
And I think people confuse scale and
impact all the time. And so, first of
all, I don't think you have to be big to
have big impact, right? So you and I
have chosen that that model. The second
is I think one of the best reasons to
grow a company
is you have a lot of seats and it's an
everexpanding range of types of seats
which means that there are more
opportunities for being able to shift
people across seats into seats for which
they're really encoded because there's a
wider range and a larger number of seats
in which you could do that. And and then
I think what really good unit level
leadership is is that an individual unit
leader is really good at kind of
shifting people around on their unit
across the seats by a process of kind of
sensing when they're in frame or out of
frame. My own process is I guess there's
a little bit of systematic, but it's
very I'm not going to package any of
this because I don't know how to package
any of it and it's not my it's not my
encoding to package and put out programs
or anything. For me, it's been just I
observe. So, I I have a member on my
team that is absolutely
marvelous at keeping a cool head in the
face of unexpected crisis. It's not me
because I I have a little bit of the
four anagram in me and I can go pretty
overly dramatic. It's not helpful. But
this person has really really really
encoded for this calm for the unexpected
crisis. We had an unexpected thing
happen yesterday that was like whoa. But
how did I discover that? It was just it
was observation. And what really became
clear to me was in the middle of CO when
everything is kind of chaos and you know
there's just this sense of just
everything spinning out of control and
what I observed was this person was was
like the calm balance through everything
right just I could just see the behavior
and it was more just kind of recognizing
it and then once I recognize it and I
just see little snippets it could be
just something I just notice
then I kick the frame to the side. I
just kind of kick it a little bit so
that what they're doing captures more of
that and it's it's a very iterative
process. So I don't have any magic dust
on this. That's just kind of what I do.
>> So in that example, this is a great
example for a follow-up question, which
is if someone is good, you don't want to
manufacture crises to
>> Yeah. Let's see how we all do of the of
the crisis manager. So, how do you
harness that? If it seems like
intrinsically it's contending with
destabilizing unexpected events, how do
you use that in coding? So, it was
really interesting, you know, so
yesterday it was just my it was really
simple. It's like, boy, I'm really glad
you're encoded for this. It was that
simple. Like, let me know how it goes.
And uh so remember I talked earlier
about I think if if you talk to people
on my team they would they would
reinforce this. We talked earlier about
for yourself it's not just recognizing
your coding it's probably I put sort of
70 points on trusting them. What I've
learned with my small team is it's also
true with like I think this really fits
with that person's encodings. I'm going
to trust them.
And I think that's the real key is I
sort of trust and get out of the way
because it's like they're so well
encoded for this that I don't need to
worry.
I just need to let them do what's
actually going to be really quite
natural for them. And I think that's not
a particularly maybe satisfying answer,
but I think the essence of it is I don't
tend to just like you don't want to
second guessess your own encodings, I
don't second guess their encodings. I
just trust that letting them go with
their encodings is going to produce a
great result and I just breathe calmly
and stay out of the way.
>> So with that person again not to belabor
the point but I I guess I specialize in
belaboring the point to my earlier point
of dumb questions.
>> Yeah.
>> In this particular employees case team
member's case
>> team member. Yeah.
>> If we look at say Google right they have
a lot of seats on the bus. if they have
some people are underutilized but who
are critical when they are needed like
firefighters let's just say sure they're
playing cards
>> all day long until you need them or when
you need them you really want them
>> does that team member fit that
description in other words they're
underutilized most of the time or how
how do you think about that
>> no I think my people would tell you that
I've got them overutilized almost all
the time so back to the exhausting thing
this is I think actually leads to
something really important for us I
think to talk about. People are not
encoded for just one thing. And so for
example with with this person this
person is also incredibly well encoded
to coach people is really phenomenal
just instinctive coach and the coaching
responsibility is something that's there
all the time. We have young people who
come in who are on my research team
young people who are here with us for a
couple of years before they head off to
do what they're going to do in the
world. other people on our team who are
handling you know range of different
types of things and they're in seats for
which they're encoded but then with that
extra bit of coaching they just kind of
have a big inflection and this
particular person is really really good
at coaching so the crises come kind of
unexpectedly they just kind of happen
but the the notion of coaching other
people is there all the time and and so
pretty probably pretty fully utilized on
that I mean sure I mean if you're in a
special operations unit you're not out
on patrol every minute, right? But
there's a whole lot of other activities
that are taking place and you can be
activating different encodings in those
kinds of activities. But I want to I
want to come to this. This is I think
and I speak to the world of like
founders on this especially.
But look, here's one of the things that
let me just pause for a moment. I said
there a moment ago. I'll let you kind of
pick how you'd like to go with it. It is
one of the most uplifting aspects of
this study
that you're not encoded for just one
thing.
And this idea that you have to find what
you're made for or even Abe Maslo's
original definition of
self-actualization which was discovering
what you were made to do and then
committing to pursue it with excellence
which I think is actually quite good
definition of self.
>> Say that one more time please.
>> Yeah. I think he defined it as
discovering what you were made to do and
then commit to pursue it with
excellence. And I think at some level
that's what all of our people did at
different phases of their life when they
were in frame. But there's a little
asterisk to it that this study has
really changed my view which is that
this idea of like as if there's this one
thing that you've got to discover that
you're made to do.
And what this study has done is blown
that apart for me completely in the idea
that the range of things that you're
encoded to potentially do is incredibly
vast. And all you have to do is find one
of them.
And the way you find that can be really
random. It doesn't matter how it
happens. It just matters that it
happens. And it doesn't matter whether
it's this portion of the encodings or
that portion of the encodings or that
portion of the encodings. Whether it's
playing NFL football like Allen Paige is
the first defensive player ever to be
league MVP and then becoming a Supreme
Court justice in the state of Minnesota.
There's almost no overlap in codings in
that at all. But he's encoded for both.
And we see that notion of it's not just
one thing. You may find one and stay
with it for your whole life. Some of the
people in our study once they found it,
they never left it. And there are other
people who because of a cliff ending it
or because of some other driving
interests, they were in one frame and
then they were way over here in another
frame and the encodings that they were
drawing upon could have been radically
different. You look at Benjamin
Franklin, right? built one of the first
media empires in history, then becomes a
scientist, then becomes our greatest
diplomat and helps found a nation.
Three really different frames. And
I'll get very excited here because I
think that there is an really really
important set of questions here for
company builders and company founders
because personally I think how you think
about
the intersection of your life to the
cycles of building a company
can be radically affected by how you
think about this question of in frame or
out of frame. So, I'm just going to
pause there and you can be curious, Tim,
however you'd like to go.
>> Well, I'm curious in maybe too many
ways. That can be problematic. And
actually, that relates to I do want to
come back
to what you just said since that's
that's a nice cliffhanger, pun intended.
>> Yeah.
>> What I do want to ask you, because this
is after all in some ways a
self-indulgent therapy session for
myself,
>> let's take a sidebar. I want to talk
about return on luck because it's been
so present on my mind. It came up in
passing in one of our earlier
conversations, but we never really did a
deep dive and then it comes up again
more substantially in what to make of a
life. A
>> whole chapter on it.
>> Yeah. I want to talk about it because it
strikes me and I want you to poke holes
in this if need be. It strikes me that
one of my encodings might actually be
maximizing return on luck because I do
so many different things and very often
if and we have to be careful about
hindsight 2020 and survivorship bias and
blah blah blah but when I look at a lot
of the home runs whether that's from
personal reward external accolades or
both a lot of the time it is
connecting these disperate worlds. And
the way that comes about frequently
is I'll have these dozens and dozens of
conversations which I do every week and
they could be with scientists, they
could be with startup founders, you name
it. And most things are a no in one form
or another. But I suppose the picture I
might paint is I feel like sometimes by
the virtue of how I live my life, I'm
standing on one side of a tennis net and
there are 600 tennis ball shooting
machines on the other side.
>> Y
>> and I seem to be very good at picking
out when there's 600 balls in the air
which one I should actually take a swing
at. And I may be giving myself too much
credit, but I think my closest friends
would say that also some version of
that.
>> If we step back, could you just describe
the different types of luck that you've
identified and what return on luck is?
>> Yeah.
>> And I might add something else that I
picked up from someone in Silicon Valley
that I think is also pretty helpful. But
let's start there because I do think
it's a mistake for folks to think I
either have this thing called big luck
or I don't and that's the end of the
story because you mentioned clues all
the time and I think this relates.
>> This has always been a real interesting
question for me because I think I've
always been kind of attuned to the role
of luck in life, good luck and bad luck.
And I was always really interested and
curious about well you know in the end
what role does luck play? Now real brief
background the first time that I began
to see this distinction between luck and
return on luck will goes all the way
back to when Morton Hansen and I were
doing our book Great by Choice. We're
looking at really chaotic environments
and some of the most successful startups
to great companies that came out of
really turbulent worlds. And because of
the environment we're looking at, it
allowed us to be able to say, well, wait
a minute. These are environments where
luck events can happen, right? I mean,
you can think about,
you know, two companies both having IBM
walk in the door looking for an
operating system and they both get the
same luck event, right? But one got a
return on that luck event.
>> And so what we did was we said, well, we
need to systematically understand this.
And and Morton really gets a lot of
credit for for this because we we
figured out how to do it. You have to
first of all define what luck is. If
you're going to study luck, you have to
understand what it is and realize that
luck is not an aura or something. It's
an event. It's a luck event. And and if
we could put the parameters of what is a
luck event and what with Morton's
collaborating together, we defined a
luck event and I think this is a really
good definition is a you didn't cause
it. So if somebody says you make your
own luck, it's not luck by definition,
right? Because there's bad luck too. If
I get a cancer diagnosis, am I going to
say I make my own luck? No, you didn't
cause it. The second is it has a
potentially significant consequence,
good or bad. And the third is in some
way it came as a surprise. You you
didn't know that it would happen or when
it would happen or what form it would
take, right? But there it is. And any
event that meets those three tests
is a luck event. And once you have that
lens,
you didn't cause a potential significant
consequence, some element, some
significant way as a surprise. You begin
to see their luck events happening all
the time.
And and and so then what Morton and I
did was we looked at these companies and
we said, well, now let's actually run
the numbers and see because we always
had comparatives in that study. And we
were able to demonstrate that the big
winners, the ones who had the huge
outsized returns relative to their
direct comparisons, did not get more
good luck. They did not get less bad
luck. They did not get bigger spikes of
luck. And they didn't get better timing
of luck. So luck as a distributed
variable was pretty even between those
that were the huge 10x winners and their
direct comparisons. So clearly luck
didn't separate. And then that led to
the observation that but it was the
return on luck that when the luck came
they had this amazing ability relative
to the comparison to make more of the
luck and that led to the return on luck
as the critical variable. So now we come
to this study and I I was looking
through you know just looking at the
amount of luck that's in these people's
lives and it's you know there's a whole
chapter on it. There's lots of
permutations of luck, including the
roulette wheel, which which set of
encodings you get thrown into at some,
you know, stage of life that just puts
you there that you didn't expect to be
there. We were talking about Grace
Hopper earlier. How'd she end up in
computer scientists? Well, World War II
happened. She got pulled out of being a
professor at Vasser. She was assigned to
this project at Harvard she didn't even
know existed. And it was the first
computer, the Mark 1. And that cast the
dive for the rest of her life. without
World War II or without that assignment
without right it would have been some
other set of encodings that that went
off but then I started looking at what
are the types of luck and I through this
study came to see I think there are
three there's what luck which is a good
event that goes your way or a bad event
you know a cancer event would be a bad
luck what luck there's who luck and I
think this is the often underappreciated
gigantic kind of luck in life my life is
a continuous theories of hool luck
events starting with Joanne but others
as well and bad luck the bad luck of my
father and then there's zit luck and zit
luck which I didn't really see until
this study is when what you're doing
just you know happens to fit with a
particular zeitgeist that's happening at
the time you did not cause but it is a
huge reality so I mean Benjamin Franklin
you and I would never talk about
Benjamin Franklin if he had born at a
time that he wasn't there for the
revolution and the founding of the
country. And Alice Paul, if she'd been
born 20 years later or 20 years earlier,
she wouldn't have been there to bring
the 19th amendment and suffrage to a
successful close. She would have done
something else, right? But not that. And
so Jimmy Paige and had not been born in
England coming of age in the blues rock
revolution right there as all this great
music was happening. Right. I'll just
say briefly, people need to read it, but
the the entire founding story of Led
Zeppelin is kind of the same when you
look at the number of things that had to
go right. Yeah. It's just wild. Yeah.
>> And there's that great quote from Robert
Plant saying, "What was that? The gods
roared and you know, lightning crackled
and Blake wrote a poem from under the
ground and all England was reunited."
You know, it's just this great moment in
that basement that where they had that
first song when they played Train Kept
Rolling and the four of them came
together. Anyway, zeit luck is a big one
too. And then what we found in this
study is and I think it really is a it's
a very true finding.
They were really good at getting a
return on luck when luck came because
they these things we called Natalie
moments. Not all time in life is equal.
And you recognize this is a not all time
in life is equal moment. And it requires
an unequal response to an unequal
moment. And so now I come back to you,
Tim. If you're good at this return on
luck thing, okay.
>> Yeah.
>> So the 600 tennis balls are coming at
you. One of them is the one that you
decide to to hit. What about your
ability to kind of recognize it's a not
all time in life is equal moment
>> and to go to kind of a 10x intensity
in that moment. I'm curious how that
plays out for you. I think there's a lot
of overlap and and certainly I I think
my maximizing return on luck has an ROI
distribution very similar to angel
investing. I so 80% of the times I hit
the ball it's like Marco and there's no
polo. Nobody hits it back. Right.
>> But but every once in a while I'm like
holy cow I just scored the winning point
in Wibbleton. That's crazy. Didn't see
that coming. Yeah. So I'll come back and
answer that. I think they're very
closely related and I identify with the
what who and zeit luck. For instance,
when I started angel investing 2008
roughly 2008, 2009, 2010, I mean it was
>> just a beautiful time to angel invest.
Yes, there's some skill involved. I tend
to disbelieve people who attribute
anything solely to luck or solely to
skill. It's usually some combination.
But there are definitely periods of time
where I felt that not all time in life
is equal and this is where you need to
apply some pressure
to the vessel. Yeah. Right. And that
could be the first book which you know
we don't need to get into right now. It
could be early on the angel investing.
>> Mhm. It could be for instance around
2015 deciding to like 10x 20x 30x down
my bet on supporting science related to
psychedelic assisted therapies and
even back then starting also but now
typically non-invasive but sometimes
invasive bioelectric medicine brain
stimulation I think that's I have very
high conviction that that is around the
corner So taking a peek at the future
that's not evenly distributed. I feel
>> that way about biologic medicine right
now. So I think they're very tightly
bound in a sense. And question for you.
There's this term that I came across. I
I wish I had the attribution but believe
it was from someone in Silicon Valley or
at least someone in tech. They talked
about increasing the surface area of
luck. In other words,
if you need luck, if we're talking about
good luck to stick to you,
>> how do you increase the surface area
available to which that luck can stick?
And when I think about my own hoolock,
for instance,
>> it was entirely dependent in the world
of startups and even one could argue the
success of the first book on me moving
to Silicon Valley, being in the middle
of that switchbox. Without that, forget
it. there was not enough surface area to
which hool luck could really stick.
>> Yeah.
>> And I'm just wondering if that
resonates. So first of all I think
whatever the size of the surface the
idea of luck and return on luck
is always operating if you will right
because I mean you could be you know my
family in rural northern Oklahoma my on
my father's side isn't Silicon Valley
but my grandmother who grew up there you
know she had luck and return on luck
that her life was affected by I mean she
was this beautiful Oklahoma farm girl
and she was working at the Witchah
airport and this dashing test pilot who
was my grandfather Jimmy Collins landed
for fuel on a Memorial Day weekend and
they met and 4 days later they were
married and it was like okay this is a
hoolock moment but we're both going to
seize that not all time in life is equal
and boom right you know so that notion
of the luck and return on luck can
happen sort of anywhere so one I don't
think it's contingent that it has to be
the largest sphere That said, I
absolutely agree with you that one of
the reasons to be in certain
environments if you're fortunate enough
to be there is there's just a lot more
tennis balls coming at you and there's a
lot more around the hoolock side of it.
In my life, I've often said, you know,
there are lots of ways to be wealthy,
but the way in which I have been
incredibly wealthy.
I've done well on many dimensions, but
probably the way in which I have the
greatest wealth is in a vast vast set of
hoolock events. And that happened, it
started because I started being in
environments where I would come in
contact with with people who ended up
being hoolock. John Gardner down the
hall from me at Stanford. But I mean
just a couple to really illustrate like
that really affected my own life because
I was in a place where the surface area
was fairly large. When I went off to
Stanford business school second year and
the the course sorting machine I wanted
to get into an entrepreneurship small
business course. it filled up and so the
course sorting machine just randomly put
me into a section with a totally
unproven guy named Bill Lazir who we
spoke about in one of our previous
conversations. It was truly just the
random course sorting. So it is
absolutely it's like a coin flip. And
then Bill ended up, it was the first
time he taught, no one knew who he was,
was the first person that was ever like
a father for me. And Bill, despite all
of my, you know, challenges to be
somebody to deal with or whatever and
those hot coals and he had to manage
those. But the return on luck was I
recognized Bill's caring and I I
invested in our friendship and our
relationship all the way along as well.
And then that led to another luck event,
a what luck followed by a hoolock. So I
was 28 29 years old I think 29 maybe 30
right around that age. So how did I end
up teaching at Stanford business school?
Well, shortly before the start of the
fall term in 1988,
Bill was teaching entrepreneurship and
small business. I was kind of still in
the fog of my 20s and I'd been managing
Jo-Ann's athletic career and
one of the sections of entrepreneurship
and small business because of a family
tragedy
all of a sudden lost the professor who
was going to be teaching it.
I mean, it was a really bad luck event
for that person, but all of a sudden, it
hit me with a luck event in the sense it
was the luck event was all of a sudden
that class had nobody to teach it. And
Bill taught the other section of it and
Bill went to the deans and said, "How
about we let Jim teach it?" I wasn't
teaching there at the time and and they
were very skeptical of this, but Bill
said, "I'll, you know, I'll take
responsibility and so forth." And that's
what opened up the door for me to teach
at Stanford. It was a like had that
tragedy not happened, I wouldn't have
had that opportunity. And if I had not
had Bill from the previous luck event, I
would not have had that opportunity. And
then and then Bill was said, "Okay, you
know, this is like you unexpectedly got
to pitch in Yankee Stadium and you only
get to pitch once if you don't throw a
good game, but if you throw a no hitter,
you might get to pitch again."
And so that's the Natalie time, right?
Not all time in life is equal. Is that
moment I get this, you know, it's look,
if you had one shot, one opportunity to
seize everything you wanted in one
moment, would you capture it or let it
slip? I mean, it's one of the great
songs of all time because it gets right
to this thing, right? That's the Natalie
moment. And then the next luck event,
which was a who luck thing, happened,
which is I'd written a little article
for the San Jose Mercury News. a fellow
by the name of Jerry Porus just happened
to read it who happened to be on the
faculty with me who sent me an email
saying I noticed you're interested in
this stuff on corporate vision can we
talk so I go have a conversation with
Jerry Porus we he'd been a professor of
mine before but he didn't even probably
remember that and then we ended up that
became where we started the project that
eventually led to built to last right so
another hoolock and then those years of
like teaching and you know basically
having no time for anything except the
research and the teaching and the whole
bit. And then that leads to built to
last, which then leads to another luck
event, which is this thing that that no
one knew who we were and totally
unexpected. The day that built to last
was published.
I wake up in a small in a a hotel room
in a small hotel down in Halfoon Bay,
California.
And I think pub date was October 17 or
something like that. Anyways, and I was
down there to do a little thing for the
Stanford Alumni Association, kind of a
talk or something. And I get up and I
open the door to pick up my morning USA
Today. And I pick it up and the top of
the USA Today says built to last author
something. See money section. I'm like,
well, that's kind of weird. Okay. So
then I flipped to the money section and
there's a picture this big of Jerry and
me and we own the entire front page of
the money section and with a picture of
the book and the two of us and it goes
on for like three pages. We had zero
idea any of this was going to happen and
it simply there's a series of things
that led to that happening which related
to hoolock. I thought it was a joke. So
I called Joanne and I said you know god
my friends are taking pity on me.
They're playing a joke. They made this
mockup copy of USA Today and they left
it on my doorstep and well actually I
didn't call her at first cuz I went
downstairs and then I saw there were
other USA Today's there and I went and I
looked and they all had the same thing.
I said, "Man, this is a really elaborate
hoax cuz they changed all the
newspapers."
And then I called Joanne and she said,
"Oh my gosh, now we're in trouble
because that actually is real and we're
50,000 copies backordered overnight."
>> Oh wow.
Quality problem.
>> And then of course there was the year
after that which was a Natalie year at
the end of which I put so much into it I
ended up getting shingles because my
immune system was so shot. So the each
of those were there was the luck event
often a who luck event sometimes a what
luck event but every one of them what
followed was
the return on luck aspect of it of yes I
get the email from Jerry Porus but then
there's the five years of doing the
research and inventing the match pair
method and you know like what a
wonderful opportunity to do that and and
those are my life is just hooluck after
hoolock after hooluck and then the
sphere I was in a place where there was
a lot of this fear I just have to say
though there's one thing which is
sometimes you have hoolock though and
that doesn't necessarily mean that the
key is you can have opportunities come
at you and the hard part is when not to
make a return on luck event out of it
because it wouldn't fit your encodings
and so just because something's a once
in a-lifetime opportunity
is merely a fact. It's not a reason.
>> I mean, everything's kind of a once in
a-lifetime event if you sit down and
really think about it, right?
>> Each and every day,
>> I think about this line, and I'm going
to paraphrase, although I think I'm very
close, by the late Lord Rabbi Jonathan
Saxs, who I had on the podcast a few
years before he passed.
And I think he said something along the
lines of the great challenge in life is
to separate an opportunity to be seized
from a temptation to be resisted.
>> Exactly. Oh, that's that's exactly
that's really good words.
>> I think about that a lot. And
>> to follow up on the the luck question,
so if we look at return on luck, it
doesn't specify good or bad. I was
thinking about this in the process of
reading and I'm wondering if you look at
the people you have studied
>> whether it's for what to make of a life
or other books or outside of the context
of books
>> it seems like yes you can conclude
distribution of luck for these matched
pairs seems roughly equivalent but the
return on luck is not and I'm wondering
if that applies not only to good luck
and I'll I'll tell you what went through
my head I Hm. If you were teaching,
let's just say you, Jim, teaching a
class at Stanford called luck or
>> return on luck.
>> Return on luck.
>> Yeah.
>> Is it possible there's actually a
progression of skill related to return
on luck just as there might be with
different types of investing in that if
there's big good luck, that's sort of
the white belt level. Most people can
recognize that. Some percentage of those
people can capitalize on it. Then
there's small good luck which is is a
little more challenging.
Then let's skip over neutral. Just say
there's like small bad luck, little bad
things that people can sometimes make
use of along the lines of the apocryphal
Chinese saying never let a good crisis
go to waste type of thing. And then
there's big bad luck. And I'm I'm just
wondering, we could think of these all
as forms of chance.
If you've noticed any patterns among the
match pairs where we're able to make
good use of big good luck or small good
luck, were they also able to reframe bad
events or make use of quote unquote bad
events? Just a question. I've struggled
with this myself because I I feel like
I've done better at return on good luck
than return on bad luck myself. I've had
some return on bad luck too, but I can
more easily zero in on the return on
good luck. So, so first of all, I just
want to clarify one thing that's really
worth mentioning. In my prior work, good
great bill to last, great by choice, how
the mighty fall, so forth, where I was
doing match pair studies, and Jerry
Porus really gets the credit for coming
up with the idea of the historical match
pair method that's been so central to
me. And you were always asking, I got
two companies and then multiple pairs of
companies and they're in similar
circumstances and then one does one
really well and the other doesn't. and
you're you're looking at the contrast
and asking what's different and that's
how you see the ideas. And so that was
really good for my corporate research.
This study is different in how I use
pairs. Joanne came into me one day and
she just said, "Jim, people are not
stock returns." And what she meant by
that is, you know, was if I'm studying
companies, I have these objective output
variables, right? Right? I can look at
cumulative returns relative to investors
for example and I can really I can
definitively prove this company over
time did better than that company. I can
unassalably demonstrate that. But
there's no legitimate way for me to
define what is a better life than
another life. And so what happened in
doing this study and this was a big
change in how I just even look at the
whole world is that the way it actually
turned out because there were really
interesting people all the way around is
my other studies it was like this right
you know there was always one that was
better than the other. In this study I
had two people and then they would hit a
similar cliff and they would come out
and they would maybe go different
directions but you couldn't necessarily
say one direction is better than another
direction. You could say maybe one
person had more trouble getting in frame
before they got to the other side or
whatever. And so this study is very much
about people going through similar
cliffs and coming out making different
choices which is a very different thing
than saying making better choices. So I
want to be really careful that that I
use pairs here. I learned a lot from
having pairs. Pairs were essential to
this. But the way I think about them
when it comes to human beings is
different than the way I think about
them when it comes to companies. the bad
luck part. I want to speak from a
company standpoint. I want to speak from
a personal standpoint. Company
standpoint. What Morton and I found in
Great by Choice is that the only
mistakes you can learn from and the only
bad luck events you can learn from are
the ones you survive.
And so it's true, right?
And so what we found is that there's
sort of a part of getting a return on
bad luck for companies. And speaking for
any founders or people who are building
companies, what what we really found is
that the way they manage the bad luck
side of things is you think of like a
curve of a rising curve of a company or
you know company moving through and and
say it's you know its growth or its
success or whatever it's like this but
around this like these events like you
know COVID financial crisis massive
technological disruption whatever it
happens to be like these are sort of
these things that are happening along
the way. And meanwhile down here is this
line that you'd think of as the death
line. And if you ever hit the death
line, it's over, right? You never get a
chance to get a return on what comes
next because it's done. And so what we
found is the kind of the secret to
managing from a company standpoint, the
the bad luck side of it is you got to
stay alive. And the part of getting a
return on luck is if you manage yourself
with such discipline and with such
financial reserves and with such buffers
and such relationships and so forth such
that when you get a triple hit of bad
luck,
you're alive.
You don't hit the death line. Part of
the return on luck is you get to the
other side and others got wiped out, but
you didn't.
And that sets you up for a return after
the fact. And so this notion of kind of
part of the secret to getting a high
return on bad luck as a company is to
have constant productive paranoia so
that you never hit the death line.
Because if you're one of the ones who
never hits the death line, then you get
a return by almost definition because
you survived and others didn't. So
that's the company side of it. And then
of course you make the most of the
things you learned and all that sort of
stuff. From a personal standpoint, I
think about one of the people in the
study who you met. We have a pair of
women whose husbands died with tragic
luck events.
One died in a plane crash
and the other died of a heart attack.
So these two women got hit with a
massive blow of bad luck.
I mean, it's the ultimate, right? You
didn't cause a plane crash. Huge
negative consequence. Total surprise out
of the blue when you get that call that
afternoon. And you look at Cartis
Collins who husband, both of these
women, their husband serves in Congress,
which meant that they had the
opportunity to take their husband's
seats because the way that works with
this mandate that opens up the
possibility if your spouse dies, you get
to take their seat. And Cartis Collins,
she felt that her husband would have
wanted her to at least give it a try.
And she goes off to Washington DC. She
was totally unprepared for being she had
never thought of being a congressperson.
The whole frame of her life had shifted
and her life had been shattered.
And while she was there, she began
making these steps like she just
started, you know, she would serve on a
committee. She started right and she
wasn't even sure she was going to stay.
And then what happened is she began to
discover a marvelous set like she had
these amazing encodings probably I mean
just really amazing encodings for being
an incredible legislator. She became
chair of the congressional black caucus
at one point. She was there for 25
years. She really flourished in the role
of being a congressperson 7th district
of Chicago. Now I I want to be really
clear. I wouldn't look at it as that oh
it turned out that it was a good thing
she lost her husband. It wasn't. It was
terrible thing. So you don't look at it
and kind of denigrate or in any way
dismiss the pain and the grief of losing
her husband. That's just awful, tragic,
terrible luck.
But what the story illustrates is that
sometimes these bad luck events, cliff
events, number of the people in our
study, these cliff events have a way of
knocking your life to the side. And when
that gets knocked to the side, you're
thrown off to Congress, you know, or you
have a disease,
your life has just been just bang.
And what happens, I think the way I
think of it through this study is it
isn't just kind of like I will make good
from bad. Look, it's just awful to lose
your husband.
But in many ways what it showed is this
sense of that those cliff events which
are often a form of bad luck in some
cases or sometimes good cliff events but
can be bad luck events
can reframe your life in incredibly
unexpected ways and expose encodings
you never knew you had.
And then the return on that is right
back to the very earlier part of the
conversation which is those encodings
pop into frame. You recognize them. You
begin to trust them and your life takes
a different vector.
And that's how I really kind of came to
see it on these big ones. You're not
polyianish about it at all. They can be
terrible, terrible things. Katherine
Graham, another one, right? just she had
no idea she had the encodings to be one
of the greatest corporate leaders of all
time. But when the frame shifted and she
began to discover those leadership
encodings
doesn't take away the pain of what she
lived through.
But when she
really committed to and trusted,
I am the leader of the Washington Post
company,
that was the ultimate return for the
company, for her, for journalism, for
the whole deal. So that's kind of how I
how I think about it. And and think
about it this way. This is going to
happen. There are going to be founders.
There's just I know you have founders in
your world. One of the big luck events
that happens to a lot of founders
is
They lost control of their company.
Then they lost their company. And
sometimes it comes as a terrible ripping
shock almost like a death
and they're cast into the fog.
Or the other version of it is they sell
their company
and then they lose three decades of
their life because they don't get back
in frame.
There's multiple groups of people that I
really, really, really hope engage with
this book, but one of them are my
friends in the military, veterans coming
out of places like special operations
who have to reframe their life, etc. But
I think the for for people who aren't
going to build a company till the day
they die, like Sam Walton
or Steve Jobs, you're going to face this
cliff event.
And I think a lot of them are not well
prepared for it. And I think they just
jump right off another cliff. I would
love to see that not happen. And one of
the big questions I would put to
corporate I really believe this is to
ask yourself the question is
ultimately in the end are you going to
be a founder who actually the big thing
you discovered in your life is building
your company
and you will do it until you're out of
breath.
or are you going to be somebody who
that's one frame of your life
and then there'll be a second very very
different frame that comes after that.
What worries me is how many people
either they lose their company or they
sell their company and they actually
don't know how to get back in frame.
And then a year goes by and five years
goes by and 10 years goes by and 15
years goes by and as you know from the
book your best years are starting to hit
at about 55 60 65 70 anyway.
and all of a sudden
those punches in life have just expired
without being really used.
>> I would say very few founders have a
plan. They have scripts they can copy,
but it's not reasoning from first
principles or from seeking encodings.
It's I guess this is what you do now.
And that typically
ends up with a crisis of identity much
like you described after an athletic
career, after special ops, after
anything that has been a lynch pin of
your identity for such a long time. I'd
love to ask you a question that may tie
into a lot of what we've discussed
already.
It came about in reviewing our earlier
conversations
>> and
I'd love for you to expand on it. So
here here's the line. His mentor Irv
Grouse, hopefully I'm pronouncing that
correctly, told him
>> y
>> an option to come back in quotation
marks has negative value on a creative
path because it will change your
behavior.
>> Could you expand on this? Because part
of the reason why I have the
confidence,
I'm not sure if that's quite the right
word, to pursue all these different
paths and
chase different laser pointers of
novelty is that I know I don't have to
stick with any given boondoggle if it
turns out to be a boondoggle. So could
you just expand on this? I want to make
sure I'm understanding it correctly and
where it applies, where it might not
apply. If this Irv grasp
>> Irv was another one of the you know
wonderful
people that hit my my surface if you
will a great hoolock event the story
you're referring to essentially was I
was at the point where I was going to be
really you know contemplating and
confronting leaving Stanford to head out
on my own bed on my own work and and of
course the key is you know now we know
the result right it worked and I'm
really glad that I carved my own path I
wouldn't have been encoded to be
successful in a political environment
anyway. And then most universities are
political. You could be good at that.
I'm I wasn't very good at it. I was
singularly terrible at it. But, you
know, there was a question in my mind
about should I try to build some bridges
and threads back such that if I stepped
away for 6 months or a year or whatever
that I could have the option to return,
right? If this if built to last didn't
work or whatever, right? Because it was
all right at about that time. And Irv
said, 'It's not in your interest to have
the option to come back.
And I said, 'Well, I thought options
always have positive value. He said, 'N
no, options sometimes can have negative
value because
if you know you have the option to come
back,
it will change your behavior, the level
of commitment. If you know there's no
option to come back, you're going to
have to do it's ultimately it's a
Natalie time, right? it's going to be
ultra Natalie time and it will change
your behavior if you don't have the
option to come back. And so that idea of
I think you can have a lot of things in
life that are sort of you know small
test options and things like that. But I
also what I really took from that is
that there come these times when you
just go all in. And this is the key in
low odds games, games where there's a
very low odds of success
statistically.
If you don't go
100% allin,
the odds will be zero. Mhm.
>> So you're either looking at a 2% chance
or a 0% chance. I'll take two over zero.
>> And zero is like anything from 0% to 80%
commitment is a zero.
>> Exactly. And and you can see it in the
people in our study at certain points in
their life
when they went once they got clear right
they got out of a fog phase or they were
sort of clicked into frame for the first
time. I mean, the extent to which they
were in, I mean, it was it was this is
what I'm doing. I'm not looking back.
Here we go. That moment
when Franklin
gets dressed down by the privy council
and he realizes that it is finally, you
know, there has to be the separation
from
>> such a great story.
>> Oh god, they're dressing him down and
he's just like
>> walked in an Englishman and walked out
an American.
>> Yeah. as a history professor put it and
I I I'm pretty sure I quoted him the
history professor because this is
perfect. He walked in an Englishman,
walked out an American. But then think
think about then when they did the
Declaration of Independence because what
I came to understand by studying Roger
Sherman and Benjamin Franklin who are
the pair in this is obviously historians
know this really well. But I had to
learn a lot about the American
Revolution, the founding of the country,
the constitution, all this kind of stuff
through the pair of these people and
this difference between separating from
like parliament and separating from the
king. And the declaration of
independence was separating from the
king and that thing of an understanding
that when we signed this document,
we lose, we die, we all die. This is a
death warrant if we don't win. And that
moment of putting your signature on the
Declaration of Independence
would result in your death if you don't
win
has a way of focusing the mind to win.
>> Yeah.
>> No options.
I'd love to hear you discuss for a bit
>> what you learned from simply choosing
who to include in the book because
>> you've applied much like sometimes
people think of options as always good
things not true
>> people may think of constraints as bad
things but very often necessary positive
constraints are a real thing so having
matched pairs requires it's a forcing
function filtering Right. And even with
matched pairs, you have many you could
ostensibly choose from, and you had to
winnow that down to something that could
be contained in a coherent way in this
book.
>> And I'm wondering if as an entire group
>> Mhm. you learned from who you chose to
omit as opposed to who to include and if
anything distinguished
one group from another meaning who made
it and who didn't make it
>> outside of the matched pair forcing
function. there was a
a journey of really looking for a range
of people who would shine a light on the
questions that I was interested in. But
there's lots of folks that for whatever
reason in the end I ended up not
including and partly one of the first
you put it right on number one. If I was
going to have matched pairs I've got to
find the opposite side of the pair. So
if I found somebody so I'll give a
really good example. We're just talking
about Roger Sherman and Benjamin
Franklin. I thought that this was back
when I originally flamed it as renewal,
but then began to look at an entire
life. But I always thought Franklin
would be fascinating to study. He is the
kind of first poster child of great
stuff late. I mean, the things that he
did 70 and beyond. And of course, most
of the people in our study did great
stuff late, too. That's one of the most
uplifting findings of the study is how
much great stuff happens late. But I was
just fascinated by Franklin that way.
But then, how do you find a match pair
for Benjamin Franklin? And I was like,
well, we may not be able to have
Franklin because I don't think there's
going to be a match. How do you find a
match for Franklin? And so member of my
team and I kind of puzzled on this and
we came up with this idea which is we
said, well, let's just take all the
names of all the people who signed the
Declaration of Independence and who were
also at the Constitutional Convention.
That'll be a starting set. Now, what
we'll do is we'll go pull apart all
those lives
looking to see if there's anybody that
meets the following tests. One came from
what they call the leather apron class.
Two through self-education became a
successful business person and hard
work. Three then went on to sort of a
second life after that in some form some
sort of interesting way. Four played a
significant role in the founding
documents of the United States and five
would have been kind of a comparable age
cohort to Benjamin Franklin. Right? the
whole thing like just go through and you
start taking all these people in this
long list and you start ticking it off
and ticking off and then all of a sudden
we discovered Roger Sherman who met all
of those tests who turns out to be one
of the great finds for me in the study.
Almost no one knows about Roger Well,
that's not true. I didn't know much
about Roger Sherman.
>> I didn't either.
>> And he saved the Constitution twice.
>> The way you penned the introduction to
that
>> Oh, yeah. Who is this
>> section was really really funny.
>> Yeah. Who is this guy? And he turns out
to be amazing. and they were the two
oldest people at the constitutional
convention. They played a seinal role in
the founding of the country. And so it
was but if I wouldn't have found
Sherman, I wouldn't have been able to
have Franklin because I wouldn't have
had the match. And and so throughout the
entire study, there was this constant
process of God, that'd be really
interesting, but is there a match? I
thought it'd be fabulous to have like
Lenin and McCartney, but you have an
asymmetry. Tragically, sadly, we lost
John Lennon at a point where all of a
sudden his life's truncated and so it
just wouldn't have been as good of a
match to look all the way out, right?
So, ended up with Plant and Paige from
Zeppelin, which I think was a phenomenal
match. And so, just time and again. And
then the other part was I wanted
different walks of life. I wanted
scientists. I wanted writers. I wanted,
you know, I wanted different very
different kinds of roles and things that
people did. and different eras, right?
I've got the suffrage era. I've got the
founding of the country. I've got, you
know, the 19, you know, 20s or 40s or
60s or whatever. But the other is they
all had to be people where
their life, even if it's not over, and
most of them it is over,
is largely in the record books, right?
They couldn't be at an age where you you
sort of don't know what's really going
to happen. There's too much more yet to
live. And I'm really glad I stuck to
that because that's what really showed
the hey look at what happens after 50 60
70 and beyond. So let me ask a sort of
holistic question about all the folks
that were included also and that is
it's dangerous to assume but presumably
you could have chosen a cohort
and I've looked a lot just given my
involvement in science and studies and
so on these metaanalyses of
key contributions to science and perhaps
they're awarded with the Nobel Prize or
something much much later but
>> a lot of scientists
it seems, produce their most compelling
work, let's just say sort of in their
startup years, right? In quintessential
startup Silicon Valley terms like 18 to
25 or 18 to 30, something like that.
If that if we take that just as a
placeholder to be true for some many
scientists and maybe even more broadly
speaking in other disciplines,
what separates
the people who in the book are so
consistently incredibly
productive in their later years from the
people who don't do that? First of all,
before we even just get into this a
little bit, I want to ask you a
question, which is where do you think
this mythology comes from? That
creativity, innovation, breakthroughs,
best work, etc., etc., is the province
of the young.
>> Where do I think it comes from?
>> Yeah.
>> Well, okay. My thoughts may not be
appetizing, but let's give it a shot. So
I I think about this
part of
how I'll answer echoes I think some of
how you approach your work in the sense
that why do you study publicly traded
companies because you can compare them
across metrics and criteria that are
publicly available. You have the data
>> have the data
>> and I don't want to make everything
about startups but I do find startups a
really strange fascinating
laboratory within which you can look at
different types of phenomena. And I'm
currently right now I have a whole group
of people and we're also using cloud
code and all sorts of stuff to do the
most intense fine detailed analysis of
my last 20 years of investing in
startups that you could possibly
imagine.
>> It's pretty incredible what you can do
with enriching data and
>> so on. But one of the questions is age
of founder, right? What do you see when
you're when you're sorting by age as a
founder as as one variable which is not
independent and I would say that I think
the belief whether it's a myth or not
and I think it's situationally dependent
part of it is and hence my incessant
annoying questions about energy is that
for certain disciplines the intensity
required to sustain like a Natalie
over years of intensity is constrained
by energy and you and sometimes it's
also constrained by responsibilities. So
if you are early 20s, you're living on a
futon in a cockroachinfested apartment
eating ramen to survive and that's good
enough for you at the time. There is a
certain competitive advantage to that. I
think there's also possibly just a
mitochondrial
physical advantage. So you see a lot of
home runs are created in it seems like
to me I haven't done a fine tooth comb
analysis of this people produce a lot of
their best work when they're in those
kind of professional sports peak years.
It's not that they're limited to that. I
think that's a piece of it is just
energetic
intensity endurance advantage which may
be physiologically bound.
>> Yeah. You know that's one that's one.
Yeah. What are your thoughts?
>> First of all, I think it's really
interesting and I would I would process
this through a different lens actually
at this point which is that
>> yeah the way I would process this having
done this study is I think it's not a
question of energy. I think it's a
question of being in frame with your
encodings and that if you are I don't
think the energy is I mean there's
physical things like you can have a
something that catches up with you
physically of course right or you might
have a autoimmune disease or something
like that okay but setting aside things
physically health-wise that begin to to
come at you I just see repeated levels
of evidence from the lives I studied
here and people I've known over the
course of my more classic work people
building companies and so on and so
forth that there's no evidence to me
that the energy goes down it goes up
that the creativity goes down it goes up
and what I would say is that a founder
that kind of burns out might have not
even really been in frame being a
founder and the ones who really are in
frame building a company is just so if
you take a Sam Walton or a Walt Disney
or Steve Jobs there's no evidence to me
that their creativity that their
intensity
waned until they were basically like
expiring. And I mean Sam, he had bone
cancer and he lived a very simple life.
I don't think that some of the people I
studied that their lives changed very
much. Their circumstances changed terms
of the amount of wealth they had, but
the way they lived didn't really change.
And still get up every day and they go
to work and they do the thing that
they're there to do. And Walt is still
thinking about like what the next thing
at Epcot might be. and and Sam is still
thinking about the expansion of stores
and what could happen with the culture
and Steve Jobs is thinking about you
know what will be the next iteration of
sorts of things and how can he set up
Apple to be outstanding beyond him and
then and then life the clock stops at
some point but until then they don't
stop they don't stop they just don't
>> yeah yeah
>> so this idea
that somehow it goes like this peak and
fall right
>> peak and fall I see it as a peak when
you're young isn't this it's a peak and
then there's Yes. And it just goes up
and up and up and up and up and up and
up. I mean, you found a media empire
peak. You found a nation.
>> It's a pretty tough act to follow.
>> Yeah. Exactly. And even in the science
or creative areas, you know what it's
like to write a book.
>> Yeah.
>> And how exhausting it is, how draining
it is. And you look at Tony Morrison
doesn't even become a writer until her
40s. She comes into frame as a writer.
She doesn't publish Beloved till she's
56. She doesn't publish Jazz until 61,
which is an astounding thing. And then
she just goes on and there's no
evidence. Anybody want to say that?
Well, Tony Morrison was slowing down
when she did Beloved because she's after
50.
>> No,
>> no, not true.
>> And Barbara McClinintok, Grace Hopper,
Grace Hopper made huge contributions to
computer science. those happened as her
second career.
Barbara Mcccleintoch's breakthrough on
transpositional genetic elements when it
all came together happened after the
midpoint of her life which was in her
late 40s. So this idea that it happens
early and then I can and if I go back to
my classic work and the people who built
companies, the ones who really built
companies, the reason why I think they
didn't like have this peak early and
then they're just sort of exhausted and
burned out is because they were in
frame. Sam Walton was encoded to build
Walmart. Steve Jobs was encoded to build
Apple. Walt Disney was encoded to build
Disney. And if you're encoded to build
your company the way they were encoded
to build their companies, a startup is
just kind of the first step. And you
would still eat ramen to do it. Can I
offer an an alternate?
>> Forget me. I just I I I I chafe against
the
>> I love it. I want the chafing. A
sentence you don't hear very often. No,
I'm into it. the the alternate
explanation I wanted to offer maybe it's
complimentary but let's let's just say
we rule out my theory of professional
sports physiological advantage I think
there's a piece of that sometimes
>> sure for like singing and stuff sure
>> I won't drag that particular piece out
but let's say I take it off the table
the reason I was asking about the 50 30
20 right how do you actually maintain
the 50% of your time allocated to new
intellectual creative work is because
the alternate explanation I would
probably vote for as to why some people
seem to get lost or certainly don't
focus on their encodings after some
initial success and therefore you do see
a peak and maybe a decline or plateau
is that in the beginning sounds like
you've sustained this very well. They
wake up they know exactly what they're
doing. they are doing one or two things
but there is a primary and let's just
say it's a startup it's making this
metric go up 5% per week or per month
compounding over time that's it that is
the focus period end of story and when
you have a modeicum of success or a
lightning bolt of success and you see
this in Nobel Prize winners right I
can't remember the term for it it's like
no syndrome or something
>> yeah where their productivity just
plummets afterwards why because they're
now getting all of these invitations
over the transom
And similarly, it's like when when fill
in the blank founder putting Steve Jobs
aside, although he had his periods in
the fog for sure.
>> Well, for sure after he got fired, which
was a cliff,
>> right? So, taking someone who's maybe,
you could take your pick, of hundreds of
founders who've had an exit of some type
or done well enough that now they don't
necessarily feel like they have a demon
whipping them at their back. Again, that
>> Mhm.
>> is not necessarily entirely compatible
with the the encodings, but the the
point being now they're thinking about
the charity whose board they just
joined. They're thinking about any
number of other things that slowly or
quickly eat up the pie chart of time
such that they are well below their 50%
in terms of new intellectual creative
work or applying it to their encodings.
How have you seen people most reliably
preserve that outside of some mutants
who are maybe like I certainly see this
in Silicon Valley on the spectrum who
are seem unable to do anything but focus
on their encodings. What have you
observed in in all of your studies to
people who are how they are good at
preserving the majority of the pie chart
for their encodings because I find it
very very very challenging.
>> I do. I do. I'm not going to lie.
>> It is just for myself. I have one great
advantage which just part of my
encodings going all the way back to the
way you even wrote about described our
first conversation. I'm belligerently
reclusive. It's a temperament, right?
It's a temperament. People have often
said, "Well, Jim, you must be feel
really lucky that you're, you know,
you're in you're such an enviable
position because it's easy for you to be
selective and to say no to stuff because
you have so much to select from." And
what they don't see is that I was always
selective even when I didn't have
anything to select from. Right? It's an
encoded mode that I've always had. So
for me, it's it's been I think easier
than for some people because they maybe
don't have that encoded mode of
belligerently reclusive and naturally
selective as a way of being independent
of circumstance. But then that that
brings me to
I think what I would really see with the
people in our study is that there's
phases of life. I don't think they're
common stages by the way. They're just
phases. You're kind of in a phase or out
of a phase. And there's what I would
describe as kind of clarity phases and
fog phases. And we talked about the fog
phases. But there are also these times
of great clarity when they click into
frame with a really big thing. And
sometimes they click into frame with a
really big thing. And it is the big
thing till the day they die, right? It
just they just all the way to the end.
They may have cliffs, but it doesn't
knock them into doing something else.
Tony Morrison just kept writing and
Barbara McClend just kept doing her
genetics and Robert Plant is still doing
music, right? They found the big thing
and and it's just like that's just what
I'm going to do. And then there are
others who life would hit them or they
would make a change and they kind of go
through a fog phase and then there can
be a lot of these different sort of
noisy things around them. But then they
click in again with a big thing. And
what happened with the people in our
lives is there are these times when
they're doing something they're encoded
for that really feeds their fire that
they're willing to flip the arrow of
money to do. And this is the other part
we need to talk about about this. What
happens is once they do that, it's a big
thing, right? And they go into what I
describe in the book as hedgehog mode.
There are times in life when you're in
hedgehog mode. This is the big thing I'm
doing. Now I may have some other things
around here but I'm really clear on the
big thing and sometimes they get out of
that but then they'll come back to a
version of being in the big thing
science building my company founding a
nation right you know big big big right
>> Tuesdays got to focus on founding the
nation yeah
>> exactly and so I think that once you
click in with the really big thing you
give yourself over to it and it sort of
dominates it's kind of like sure you may
tributaries in your life of water, but
there's a big river which is the
Mississippi of how you allocate
yourself. Now, there can be a lot of
pieces within it. It can have a lot of
subpoints to it, right? It might not be
as simple as just I solve genetics
puzzles, but it's got a big organizing
theme around it.
>> If that's simple, man, I don't know what
my life is, but yeah.
>> Yeah.
>> Pickup sticks.
>> But this thing about flipping the arrow
of money. So now thinking about it this
with the startup community and so forth.
One of the things that is very clear
about how people really got in frame in
our study and I really resonate with
this as I reflect on my own life too but
question is what's the arrow of money?
Are you doing what you do to make money
or do you need money to do your work? Is
money fuel
back to the flywheel? Is it simply fuel
to make the flywheel go further? Is
money fuel to write your next book? Is
money fuel to do the next Zeppelin
album? Is money fuel to be able to do
your science? Is money fuel to be able
to be a provocative questionnaire in the
world? Is money fuel? Money is a fuel
and that's the direction of arrow this
way. The other is the direction, the
flipping of the arrow of money of
actually the truth is if I strip it
away, the truth is in the end, a big
part of this is I'm doing this to make
money. And what I found with our people
is if they had flipped the arrow of
money that the only purpose of money is
to be able to do what I'm encoded for
that feeds the fire that that's that
that's the point of it. So I never have
to stop. Then you have a very different
relationship to success when it comes.
if it was about the money and then you
get the money and you were never really
in frame in the first place maybe or
maybe you were but I think that notion
of what is the direction of the arrow
plays a big role in what happens when
you get say to the other side of having
built something succeeded or whatever
and I go back all the way to my classic
work I think the great company builders
that I studied it was never about the
money it was what they were building and
that's why they never ran out of steam
no matter how much money they made, they
never ran out of steam. And I think
that's a really critical part of how
this cycle gets gets managed.
>> It's a huge piece from what I can tell.
And I'll just throw a few things out
there and then I want to also make sure
I don't forget to ask you about this
live event that I believe you're doing.
>> Oh yeah.
>> Not too not too far from now.
>> Thank you for reminding me about that.
Yeah,
>> absolutely. So I'll sprinkle some some
thoughts. So the the first is the older
I get the more I think about
I guess finite and infinite games cars
>> and just along the lines of what you
were saying like fuel being very clear
to distinguish between fuel for the
journey and the journey itself and it
makes me think of this quote people
should look up I think I may have had
him on the podcast in fact Tim O'Reilly
>> fascinating figure in Silicon Valley
publisher but much more than that and
I'll paraphrase his quote which is
imagine life as a road trip across the
country, you need fuel for the trip, but
it's not a tour of gas stations.
And
>> also, if you're selecting
perhaps using a reframed question from
Seth Goden, so the question people often
hear is, "What would you do if you knew
you could not fail?" It's like, okay.
And I have a mug with that on it, and
it's helpful to think about that.
>> You're a six. You're always going to be
worried about failing.
>> Well, the way Seth puts it is he said,
"What would you do if you knew you would
fail,
>> right?" Which forces you to think about
the actual day-to-day process of
traveling on whatever that journey
happens to be. Those are just a few
things that came to mind.
>> Yeah. And also it's like the more I do
certain things in my life, the more I
realize, yes, there might be there might
be it's a big might, a monetary reward.
And I've maybe been rewarded in the
past, but now I just want those
additional chips if they come so I can
keep putting them back into play,
which may not be the most financially
responsible all the time, but I'm also
not anywhere. I'm much like Richard
Branson or a lot of these other folks
people think of as risktakers. They're
actually really expert risk mitigators
if you really dig into their stories.
They're very rarely at risk of ever
touching that death line that you were
talking about.
>> So let's let's if you want to hop into
it since I know we're got to be coming
up on three hours now.
Do you want to mention this live event?
>> There are very few times when I'm just
out there in a public event that people
can sign up for. but related to this on
April 9th at the Commonwealth Club in
San Francisco.
>> Great spot.
>> Yeah. We're going to be doing a
conversation on the evening around the
ideas in this book. I don't know what
direction the conversation exactly will
go, but I know sometimes people are
like, "Is Jim ever, you know, going to
be live at something?" And usually there
are things people can't sign up for, but
this is one they can. So, I would hope
to see some friendly faces there and
maybe even people are provoked a little
bit by our conversation in some way. And
I would look forward to that very much.
>> So if people search Jim Collins
Commonwealth Club, would they
>> I think they should be able to. I would
hope so. Yeah. Does the Commonwealth
Club April 9, San Francisco?
Yeah. What to make of a life Jim
Collins. They can find it there.
>> In our second conversation, we're going
to start to land the plane shortly, but
I was looking at
a reference to the good to great
acknowledgements. M
>> uh this was also something that I think
you may have brought up and I'll just
read the line because there may be
something that was elided here
>> but success dot dot dot is that my
spouse likes and respects me ever more
as the years go by
>> and I'm wondering if you would keep it
to that if you would revise that add to
it simplify it how do you think about
success these days
>> I think that's one of the best
paragraphs I ever wrote is the final
acknowledgement paragraph and good to
great and I really would still see that
as for me the ultimate definition of
success in life. Joanne and I the
ultimate hoolock, right? We got engaged
four days after our first date.
>> Seems to run in the family. I guess
>> it does. And the Natalie moment was
she's saying yes now. I should say yes.
Let's get married.
>> A smart man.
>> It was very much. But then the the thing
is that and then 45 years is the return
on luck, right? They were going to do 46
this year. your spouse knows you like no
one.
and kind of to me,
I mean, my
the depth of my not just my love for
Joanne, but the depth of my respect for
her, for her intellect, for her
integrity,
for her amazing ability to to speak so
directly and sharply to me about what
needs attention. our marriage works
because multiple reasons it works but
one of it is Joanne is incredibly good
at seeing what's needs attention
and I'm encoded to hear it and the
combination is what is a great
combination for us and she's strategic
guidance mechanism I'm creative
propulsion
and
I over the years somehow just began to
realize that Joanne can see me for
really who and what I am, what my real
motivations are, why I'm doing things,
my weaknesses, my flaws, my fracture
points, my unlikable tendencies,
whatever they might be. When I wrote
that sentence, and it's as true today as
ever, the measure for me is that Joanne
will love me unless I did something
really stupid. Joanne will love me
regardless,
but will she like me more as the years
go by?
Will she respect me more as the years go
by?
And for me, that
like the truest, most searing test is if
Joanne likes and respects what she sees,
I'm not too far off the mark. and other
kinds of success have come and I want my
work to be read and all those sorts of
things. But that really is if I had all
kinds of external success but I lost
Joannne's respect or Joanne woke up one
day and was like well I actually don't
really like you anymore.
>> That'd be a bummer of a day.
>> Yeah, that would be the worst possible
kind of failure.
>> Jim, that's deeply inspiring. I find
your life and your examination of your
life and the lives of others deeply
inspiring. People can find you at
jimconins.com. The new book, I encourage
people to check it out. I read every
page of it. What to make of a life,
subtitle, Cliff's Fog, Fire, and the
Self-nowledge Imperative. That's the
book that people will be able to find
everywhere. Is there anything else you'd
like to add before we wind to a close?
>> I would just add that it is truly a
great joy to connect with you in
conversation. Again
the range of things that we get to talk
about the quality of your questions it
is as you know I track my days minus 2
-1 0 + 1 + two our conversation makes
today absolutely for me a plus two day I
would converse with you anytime
>> thanks Jim that makes my makes my day
and
always a pleasure to connect. Hopefully,
we'll have a chance to break bread in
person in the not too distant future.
That would be nice.
>> Yeah.
>> Or like get into the mountains.
>> Yep.
>> And for everybody listening, we will
link to everything, including the new
book, What to Make of a Life, and the
Commonwealth Club and so on. In the show
notes, tim.blog/mpodcast.
Just search Jim Collins and go to the
most recent episode. And until next
time, be just a bit kinder than is
necessary, not only to others, but also
to yourself.
>> Oh, I love that.
>> Thank you, Jim.
>> You're welcome.
>> And thanks to everybody for tuning in.
Till next time, take care.
Ask follow-up questions or revisit key timestamps.
Jim Collins, author of "What to Make of a Life," discusses his research on self-renewal, which originated from his wife Joanne's experience of losing her identity as a world champion athlete after a career-ending injury. He introduces concepts like "cliff events" (significant life changes) and "fog" (periods of disorientation) as common experiences even for successful individuals. Collins, at 68, claims to have more energy than at 37, attributing it to shared physical activities with his wife, a unique ability to nap (creating "two mornings"), a disciplined morning routine focused on creative work, and a shift in his internal motivation from an aggressive "molten lava" to a "sustained warming glow" driven by intrinsic love for his work. The conversation delves into "encodings" (innate capacities discovered through experience, distinct from strengths), the importance of trusting them, and how they are often vast and not limited to one area. He explains "return on luck"—maximizing unexpected opportunities (what luck, who luck, zeit luck)—and the need for "Natalie moments" of intense focus. Collins also shares his strategies for managing commitments using a "punch card system" to protect time for creative work, and emphasizes "flipping the arrow of money," where money is seen as fuel for one's work rather than the primary goal. Ultimately, Collins defines personal success by his spouse's continued love and respect.
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