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Jim Collins — What to Make of a Life

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Jim Collins — What to Make of a Life

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0:00

Joanne just one day she gasps out to me

0:02

and it was just one of those moments.

0:04

It's just like etched in my emotional

0:07

memory. She just gasps.

0:10

I feel like I'm dying. And in a sense,

0:13

she was right cuz that identity as as a

0:18

world champion athlete, this thing that

0:19

she was so encoded for, that she so

0:23

loved doing was being taken away from

0:26

her. And I realized that one way to

0:29

study self-renewal

0:31

would be to look at people who go

0:34

through what in the book we call cliff

0:36

events. These times in life where life

0:41

in some really significant way changes

0:43

under your feet.

0:44

>> Jim, so lovely to see you yet again.

0:48

>> Absolutely. I I really really truly just

0:52

revel in the idea of a conversation with

0:54

you. We've had two previous dances and I

0:59

wanted to thank you slashblame you for a

1:01

very difficult morning because I had

1:03

done lots of research and reading

1:06

certainly on your latest work which took

1:11

quite a tour of duty to complete. And I

1:15

decided that this morning I would go

1:17

back

1:19

with a lot of coffee to reread the

1:22

transcripts of our prior two

1:23

conversations. And typically when I do

1:25

something like that,

1:26

>> I have a few highlights, a few

1:29

marginelia to refer back to. And I ended

1:31

up underlining about 50 different

1:33

things. And it caused a bit of a crisis

1:37

in terms of where to start and what to

1:39

do.

1:39

>> Yeah. But I do have a lot of notes in

1:44

the latest work, what to make of a life.

1:47

And we will certainly get to that, but

1:48

we're going to meander all over the

1:50

place.

1:51

>> You got it.

1:51

>> And I wanted to start with, and I'm

1:54

paraphrasing here, but

1:57

a line in this new work, which is

1:58

effectively that you have more energy at

2:01

67 than 37.

2:03

>> You are now 68. And I wanted to dig into

2:06

that for a minute or maybe even a few

2:09

minutes.

2:10

>> Yeah.

2:10

>> Because looking back at the last two

2:13

conversations, I wanted to spot gaps in

2:16

the terrain. What had we not discussed?

2:18

>> Yep.

2:19

>> And

2:21

I wanted to look at some of maybe the

2:25

mundane things related to routine

2:28

>> food. Do you consume caffeine? Are you

2:31

still rock climbing? Maybe we'll start

2:32

with rock climbing cuz I just had elbow

2:34

surgery and I'm looking to get back into

2:35

it. Are you still climbing?

2:37

>> Not so much. I've been doing cycling

2:39

with Joanne.

2:40

>> Okay.

2:41

>> She has gotten me into going off to

2:43

Italy and the Dolommites and places like

2:45

that to do these huge mountain passes

2:48

and

2:49

>> it's something we can share together.

2:51

>> Mhm.

2:51

>> With whatever years we have left. And I

2:53

think that maybe the intense aerobic

2:55

aspect of that, you know, if you have

2:56

your heart rate above 160 for an hour, 2

3:01

hours, I mean, and spiking into the

3:04

170s, that's I think that has does

3:07

something for you. I'm not sure what.

3:08

>> Mhm.

3:09

>> But I actually think that's part of it.

3:10

And then I just have other ways. I can't

3:12

really explain entirely. In fact, that

3:15

my team has heard me say multiple times,

3:17

where's all this energy come from? Cuz

3:19

it's only increased. I really do feel

3:21

that I have more energy. I had a lot of

3:24

energy at 37. I had a lot of energy at

3:27

17. I have more energy at 67 when I

3:31

wrote that. 68 now.

3:33

>> Mhm.

3:33

>> I need less sleep. My clarity, if

3:36

anything, I think is higher. And I I

3:38

mean, I really really look forward to

3:42

4:00 a.m. because that's the point at

3:44

which I give myself permission

3:47

>> if I'm awake to leap into the day. And

3:50

it really is true that I will wake up

3:52

and I will think to myself, please, oh,

3:54

please, oh, please let it be at least

3:56

4:00 a.m. so that I can get up and get

3:58

going. And that is it's hard to explain,

4:01

but that sense of almost childlike

4:04

anticipation

4:05

>> uh to get up and get rolling is is

4:08

palpable. It's there almost every single

4:10

day. Well, I do get one, we might have

4:14

spoken about this in our first

4:16

conversation, but I've always been a

4:18

morning person. So, I actually figured

4:20

out how to get two mornings a day and

4:23

that I I'm just really fortunate that I

4:27

have the ability to nap under any

4:30

conditions anywhere at any time I can

4:33

nap. And I I was doing a a talk once and

4:38

I was a few thousand people in the room

4:41

and they had a nice couch backstage and

4:43

I'm supposed to go on and I don't know

4:45

whatever it was 30 minutes or something

4:46

and I laid down on the couch and I just

4:48

went bang right out to sleep. I'm like

4:50

I'm dreaming and I'm having a sleep etc.

4:52

And they come back and they look at me

4:54

and they're like he's asleep. Oh my

4:55

goodness, he's supposed to be on in like

4:57

5 minutes and they shake me and I'm like

4:59

okay good to go. I I can go asleep

5:01

immediately and then I can wake up

5:03

immediately and then I can walk out

5:05

3,000 people and I was asleep five

5:08

minutes before. I don't know where that

5:09

comes from. That's just a fortunate

5:11

thing. But what that allows me is I get

5:13

two mornings a day. I get first morning,

5:16

you know, that when after a night's

5:18

sleep, but then I get second morning,

5:20

which is after a nap. And and in fact,

5:23

my team knows that I'll sometimes say to

5:26

them, "I'm going to go get ready for

5:28

second morning," which basically is,

5:30

"I'm going to go take a nap." And then I

5:32

get second morning. And then I've

5:34

learned really systematically

5:37

what kinds of activities

5:40

really fit with what times of day. So is

5:45

your first morning, Jim, sorry to

5:46

interrupt. Is that 4:00 a.m. to 7:00

5:49

a.m. Something like that? What does your

5:51

first morning look like?

5:52

>> That's ideal. I love I love the 4:00

5:54

a.m. to 7 a.m. Joanne tends to sleep

5:58

later than me. So, especially when I was

6:00

like really working on the book, but

6:02

this is a general pattern as well. I

6:04

love to be up at 4:00.

6:06

I have one cup of coffee that I make in

6:08

the day. I don't have caffeine after

6:10

that. I travel with my own coffee cuz

6:13

you you really need to. The only place I

6:15

go where I don't take my own coffee is

6:17

Italy. I make my own coffee and I start

6:21

the day and that's that one one cup that

6:23

I make and I get right into usually

6:25

that's when I do my most intense

6:27

creative work and I love that sort of 3

6:30

to four hours if I can get it of just

6:33

you know the light changing and bang

6:36

into it. I like within 15 minutes I'm

6:39

fully into it and just go.

6:41

>> When do you consume your first food

6:43

typically and what is what does that

6:45

meal look like if it's a meal? I always

6:48

have something with my morning cup of

6:50

coffee so that I I have enough calories

6:52

to keep my brain going. And I just I

6:54

just grab something that's fairly easy

6:57

to eat with with a cup of coffee, a Kind

7:00

bar or maybe a yogurt or something like

7:03

that.

7:04

>> And then I have breakfast with Joanne.

7:07

We have a morning when, you know, when

7:09

I'm in town, which is most days. I don't

7:10

like to travel that much. And once

7:13

Joann's up and going, I make her a

7:15

latte. We joke that I'm a coffee elf and

7:17

I make her a latte and then Joanne

7:20

curates stories from, you know, the Wall

7:23

Street Journal or from, you know,

7:25

wherever and she reads them out loud and

7:29

then we talk about them.

7:30

>> Is this after your first morning?

7:32

>> Usually after first morning. Exactly.

7:34

>> Mhm.

7:34

>> Yeah. Sometimes we might get up at about

7:36

the same time, but most times I'm up

7:37

early. And so then I have a pretty a

7:40

more robust breakfast and and really

7:43

listen to Joanne's curation. And I'm

7:46

always just really curious what she

7:47

thinks. Could I just add a little

7:49

running commentary if I could?

7:51

>> Sure, please. So, the first is that I've

7:54

noticed this across a few different

7:56

disciplines that

7:59

as a comparison, Marcelo Garcia,

8:03

ninetime world champion in Brazilian

8:05

jiu-jitsu, considered by many to be the

8:07

greatest of all time, he

8:11

is incredibly good at going from

8:13

effectively 1 to 10 on an intensity

8:16

scale. So even before his finals match

8:18

in the world championships, my friend

8:20

Josh Whiteskin, who is the basis for

8:21

searching for Bobby Fischer, also very

8:23

good at this, told the story of them

8:25

trying to track down Marcelo because he

8:27

was about to be in the final match

8:30

>> for his particular weight class. It

8:32

might have been the unlimited division.

8:34

And they couldn't find him because he

8:35

was sleeping under the bleachers.

8:38

Yeah, I kind of had to wake him up and

8:40

then he walked to the mat, kind of shook

8:43

his head and went from 1 to 10. And what

8:46

Josh has said,

8:49

and Marcelo echoes this certainly in

8:51

different language is avoiding the

8:53

simmering six. So basically not being in

8:55

this simmering

8:57

six, but oscillating between rest or

9:01

full activation, so to speak. The second

9:04

thing I wanted to comment on is the gear

9:07

shift to shared activities

9:11

>> and biking with Joanne because I have

9:14

seen in some of the most successful

9:18

relationships that I've observed and

9:20

certainly that I'm modeling now for

9:22

myself

9:23

>> that at some point there's often an

9:26

activity shift to focus on what you can

9:29

share together. Kelly Starret, very

9:31

famous performance coach, PT and other

9:33

things, has done this with his wife

9:36

Juliet, who's amazing, where he's

9:38

shifted from some of the things he used

9:39

to do to actually mountain biking. This

9:42

is in Northern California. So, just

9:44

wanted to make those observations to ask

9:46

a very very specific question. You said

9:49

you travel with your own coffee.

9:51

>> Yeah.

9:52

>> I have to scratch the itch. What are you

9:54

actually packing

9:55

specifically? So I take I pack Pete's

10:00

ground coffee,

10:02

Arabian mocha java, a cone filter, the

10:05

filters themselves,

10:07

a water boiler so that you can, you

10:10

know, make sure that you have hot water

10:12

and and have kind of the whole setup

10:15

that way. And then when I start the day,

10:18

you know, I I get the whole sort of

10:21

system going. And it doesn't really

10:22

matter where I am or what time of day it

10:25

is. It's actually an interesting thing

10:26

because if I'm doing some kind of

10:29

session that really requires me to be

10:31

absolutely at my best, which I expect of

10:34

myself anytime that I'm out there, there

10:37

is a ritualistic aspect of it, but it's

10:39

also kind of this sense of it doesn't

10:41

matter if room service is open. It

10:43

doesn't matter any of that kind of

10:45

stuff, that opening kind of bubble of

10:48

the day. And now if it didn't work, I'd

10:51

still be fine because you always have to

10:52

be able to like that, you know, if

10:53

something just went ary, you just adapt.

10:55

But for the most part, you got that

10:57

opening bubble of the day. And to be

10:59

able to basically replicate that

11:02

>> no matter where I am, no matter what

11:04

time of day, it could be 4:00 a.m. East

11:06

Coast time or it could be 7 a.m.

11:08

California time or wherever. Right. It

11:11

replicates that morning bubble.

11:13

>> Yeah. It's like a bootup sequence that

11:15

you're able to preserve.

11:16

>> It is. It's a bootup sequence. That's

11:18

exactly what it is. And I don't have to

11:20

control any variables or wonder like are

11:23

they going to have any good coffee or is

11:25

it, you know, does room service run on

11:27

time or the room service isn't open at

11:29

4:30 or whatever. You don't think about

11:31

any of that stuff. You just move.

11:34

>> So the the particular idiosyncrasies,

11:39

eccentricities, I think that's what you

11:40

say of successful people, right?

11:42

>> Yeah. Their own idiosyncratic encodings.

11:44

Yes.

11:46

>> Yeah. There we go. And we're going to

11:47

really double click on this word in

11:49

codings is endlessly fascinating to me.

11:52

I have a few of my own and certainly in

11:55

what to make of a life which I found

11:57

very inspiring because at least in your

11:58

cohort and we'll talk about this

12:02

>> they did a lot of their best work after

12:04

50 after 60 in some cases after 70 and I

12:08

am 48 at the moment. So

12:10

>> I found it very reassuring that there

12:13

were so many case studies.

12:15

>> Oh you're still warming up. I'm still

12:16

warming up which which is very exciting

12:19

on a lot of levels. I did note a few

12:22

things. For instance,

12:24

>> and I've got lots and lots and lots of

12:26

notes that I took while reading the

12:28

book. For instance, Allan Paige, former

12:30

NFL player, became very engrossed with

12:33

running. Woke up every morning at 5:19

12:35

a.m. Exactly. Right. 519. And you gave a

12:39

list at one point, this is going to be a

12:42

pretty odd segue, but you gave a list of

12:45

some of the, let's call it, side

12:47

passions or eccentricities of different

12:49

people. And one of them, a lot of them

12:51

were like, okay, okay, sure, I can see

12:53

that some of my friends do that. And

12:54

then one of them was studying the

12:56

occult.

12:58

>> And I'm just wondering who was who was

13:00

the person. You know, if I want to say

13:02

who it was, I would have put it in the

13:03

book. But that list was really

13:05

interesting because one of the things

13:07

that I was very curious about because

13:09

our people became really once they

13:12

really locked on to a big thing for a

13:13

given period of their life as you know

13:15

from the reading.

13:16

>> I mean they were really really really

13:20

focused and the level of intensity and

13:23

energy over years or decades or multiple

13:26

decades they put into it. And I was

13:28

really I was just curious though, did

13:31

they have any room for anything else in

13:33

their lives or were they just

13:34

monoomaniacally obsessed freaks? Right?

13:37

And and then I just kind of went through

13:39

just a very simple like okay on that

13:42

particular dimension did they have

13:43

really intense side passions of some

13:46

kind even if the big thing was over here

13:49

and I think I can remember there was

13:50

something like 80ome percent had some

13:53

kind of an intense side passion and what

13:55

I was struck by is the range of them. Oh

13:58

my goodness. I mean, disco dancing, they

14:01

the studying the occult, but also like

14:03

teaching Sunday school and running and

14:06

mountain climbing and some people were

14:08

really into just hosting interesting

14:11

dinner parties. Others wouldn't have

14:12

been interested in that at all, but they

14:14

had things that absolutely they were

14:17

incredibly passionate outside of the big

14:19

thing that they focused on. And I found

14:22

that a just an interesting data point

14:24

that they didn't make a life where they

14:27

had nothing else except the primary

14:30

arena of their work to focus on.

14:32

>> So let's set the table a little bit and

14:35

I apologize in advance. I know you like

14:36

to shine the spotlight on other people

14:39

and research and data sets, but I'm I'm

14:42

probably going to turn the spotlight

14:44

back on Jim.

14:46

>> Mhm.

14:47

>> The bug called Jim.

14:48

>> Oh yeah. That's a call back for people

14:50

that listen to the first conversation.

14:52

>> Yeah.

14:52

>> So when we spoke the second conversation

14:55

we had,

14:56

>> I asked you what was on deck coming up

14:59

and you said, "I'm 5 years into research

15:01

on self-renewal." And I really like this

15:03

term self-renewal. Y

15:06

>> and before we go back to Jim, I guess

15:10

this is related to Jim, but I'm curious

15:13

how you thought about framing this book,

15:17

>> self-renewal versus say the title, what

15:21

to make of a life as I'm looking at it.

15:24

How did you think about

15:26

>> presenting this? And then if you

15:28

wouldn't mind because we were chatting

15:30

before we pressed record. I think my our

15:32

first conversation was your first long

15:33

form podcast. Yeah. And I believe this

15:36

will hopefully be the first conversation

15:38

about the new book that comes out. Just

15:40

giving a little bit of context or

15:42

genesis on on how you wrote it. So you

15:45

can tackle it in any direction you like.

15:47

In my 30s, I came across a a remarkable

15:52

man, a w one of the many sages I've I've

15:55

had the joy to be affected by in my life

15:58

of John W. gardener who was kind of a

16:02

wise man in residence at Stamford

16:03

Business School

16:05

ameritus at that point just down the

16:08

hall from me when I was teaching there

16:10

and he'd written a great book a little

16:12

book back a number of years ago on

16:14

self-renewal and I was very interested

16:16

in the question of I don't know why I

16:18

was interested but I was just interested

16:19

in why would some entities or some

16:22

people

16:23

have a life of continuous self-renewal

16:26

rather than a a life of this followed by

16:29

you know just kind of a long degradation

16:31

>> peak and then a decline.

16:32

>> Exactly. And John encouraged me to

16:36

consider doing eventually some research

16:39

on the question of self-renewal and I

16:40

was off working on built to last and

16:42

good to great and I was working on my

16:43

company research but I still have my

16:44

notes from long conversations with John

16:47

about how you might think about

16:50

self-renewal and so that seed had sort

16:52

of been in there and it was justating

16:53

and I thought someday I might return to

16:55

that. Then what happened is I started

16:58

thinking that that question was always

16:59

there like how would you actually study

17:00

it and and then

17:04

a seed got activated that had been

17:07

planted back a decade before that in my

17:11

20s.

17:12

>> Joanne who you know is so central in my

17:14

life. We've been married 45 years and

17:18

Joanne was a world-class athlete. She

17:20

was world champion in the Iron Man. She

17:22

was the first female figure in the

17:25

original Nike just do it campaigns back

17:27

in the 1980 with Bo Jackson and Howie

17:30

Howie Long and she was really

17:33

constructed to compete and that sense of

17:37

we talk about when we'll talk later

17:38

about this being encoded for something

17:40

there's just some athletes that they

17:43

need to win it's a need they need to win

17:47

>> and that was Joanne when she came when

17:49

she gave up all these other

17:51

opportunities she had in life to focus

17:53

on ultimately trying to win the Iron Man

17:56

and went in on that. It's like

17:58

everything came together and we go off

18:00

to Hawaii and she raced in ' 84, 85,86

18:04

and 85 she won the world championship in

18:06

Hawaii and there was a backstory to that

18:10

race which is that Joanne had a

18:11

hamstring injury and that hamstring

18:14

injury just was chronic and it wouldn't

18:16

really go away. And in the race it began

18:19

to catch up with her. So, she had this

18:20

10-minute lead with 10 miles to go in

18:24

the marathon. As you know, it's 2.4 mile

18:25

swim, 112 mile bike ride, and 26.2 mile

18:28

marathon in sort of 90° temperatures and

18:31

80 some% humidity on the lava fields. I

18:33

mean, it's just horrendous out there.

18:36

And she had a good swim and a great

18:38

bike, and she had this 10-minute lead

18:40

with just 10 miles to go coming back

18:42

into town. and the hamstring caught up

18:45

with her partly because it did limited

18:46

her training and and you know that was

18:48

always there and she began to lose a

18:50

minute at a mile and I remember watching

18:53

the ABC feed cuz the wet will the sports

18:56

truck was in front of her and I could

18:58

sort of see the race unfolding. I could

18:59

watch it in real time with the camera of

19:01

the truck right in front of her and you

19:03

could see her starting to lose time like

19:06

she's a you know 9 minute lead, 8 minute

19:08

lead, 7 minute lead, 6 minute lead like

19:10

and you're getting closer and closer to

19:12

the end but is she going to get there

19:14

before somebody else does and there is

19:18

this moment I mean I'll never forget the

19:20

moment where she stops in the middle of

19:22

the lava fields and she has this

19:25

extraordinary discomfort and pain and

19:27

she's looking at her legs hoping they

19:29

would move. And she reaches down and she

19:30

sort of massages them and she kind of

19:32

like pounds on her quadriceps and she

19:35

looks up to the sky and it almost looked

19:37

like she was pleading with somebody to

19:39

help her somehow.

19:41

And then she just kind of fixed her gaze

19:44

on the horizon and there was this sort

19:46

of stoic

19:48

countenance that came over and she just

19:51

like started to move and then she

19:54

started to run and she ended up winning

19:57

a 10-hour plus race by about 90 seconds.

20:01

And it's like one of those things in

20:03

life like you have very few experiences

20:05

like that.

20:07

And then when we got back to Palo Alto

20:10

where we lived at the time, you know,

20:11

the hamstring just didn't heal.

20:13

>> Mhm.

20:14

>> And she tried everything. Surgery,

20:17

physical therapy, rest, stretching, you

20:19

name it.

20:21

And eventually she just had to confront

20:23

the brutal fact that her athletic career

20:26

was going to end at her peak.

20:30

And we were sitting there in a little

20:35

townhouse in Palo Alto. We're sitting at

20:37

our kitchen table and Joanne just one

20:38

day she gasps out to me and it was just

20:41

one of those moments. It's just like

20:43

etched in my emotional memory. She just

20:46

gasps,

20:48

I feel like I'm dying. And I had no

20:52

answer. It's not like you can solve that

20:54

or anything like that. It's just I feel

20:56

like I'm dying.

20:58

And it and in a sense she was right

21:01

because that identity as as a world

21:04

champion athlete, this thing that she

21:06

was so encoded for, that she so

21:10

loved doing was being taken away from

21:13

her. And in a sense, it was dying, a

21:17

certain kind of dying. And that seed

21:22

somehow mixed with the John Gardner

21:25

thing because what happened is

21:29

I somehow sort of fused these together

21:32

in my mind. I think that actually

21:34

Joann's experience is what gave me the

21:36

original interest in self-renewal

21:38

because I just didn't have the language

21:40

for it. I didn't really see the

21:41

connection so clearly. It was kind of

21:42

murky. But I think they fused together.

21:45

And I realized that one way to study

21:48

self-renewal

21:49

would be to look at people who go

21:53

through what in the book we call cliff

21:55

events. These times in life where life

22:00

in some really significant way changes

22:02

under your feet. Either you choose it to

22:04

change or or it happens to you. But

22:07

there's kind of a before and an after

22:09

and and and your life is so changed at

22:13

that time that you have to really

22:15

reorient and reconsider. And sometimes

22:17

those cliffs like Joann's are really

22:21

monumental moments in life. They are

22:23

real cliff events. And I thought if I

22:25

could find people, if I could study

22:27

people at the cliff and I could study

22:30

their lives up to the cliff, through the

22:32

cliff and after the cliff and how they

22:35

come out and how they how they kind of

22:37

constructed life after that, I would be

22:40

able to have a method for understanding

22:43

this thing that I used to sort of think

22:45

of as about self-renewal.

22:47

And so I just need to fill in a couple

22:50

other pieces cuz yeah sort of the

22:52

creative journey of how I got here. But

22:54

then as you know I always like pairs. I

22:56

like to have two entities in the same

22:58

situation to kind of set next to each

23:00

other. I did that in all my prior works.

23:02

And so the idea was wow what if you

23:05

could find pairs of people that were at

23:07

the same cliff and their lives were

23:10

really similar up to that cliff. And

23:13

then you look at how their lives, how

23:15

they come under the cliff, through the

23:17

cliff and out of the cliff. And then by

23:20

looking at that, I would understand this

23:22

process of renewal out here through this

23:25

methodology. And so that's when I

23:27

started the whole journey. Now let's

23:29

just zoom way out. As I got into it and

23:33

I really began I I selected my I had my

23:35

match pairs. I had my my people had gone

23:37

through these cliffs. I was studying

23:39

their whole lives. It was overwhelming

23:40

in scale. this project. I honestly

23:43

thought at times I might never be able

23:44

to finish it because it was just so

23:46

monstrously big. But it began to dawn on

23:50

me the more I worked on it because I was

23:52

looking at you couldn't understand this

23:55

cliff out thing if you didn't understand

23:57

the whole life. And so I had to study,

24:02

you know, from their entire lives,

24:04

right? And most of them are deceased. a

24:07

few were in their 80s, you know, but but

24:09

basically I I had the the record of

24:12

their lives pretty much intact. And all

24:16

of a sudden, I began to realize two

24:17

things. First of all, none of them

24:19

thought about self-renewal as like an

24:22

objective. And rather what I really saw

24:24

were people who achieved what I might

24:26

call self-renewal, but that's kind of

24:28

not what they were doing. They were

24:29

leading their lives. And they were

24:31

leading their lives through these cliff

24:34

events and in between the cliff events.

24:36

and somehow all the way through to the

24:38

end for the ones that had passed away.

24:40

And I began to realize that what I had

24:43

was a huge and rich data source for

24:48

really the big question. And and just

24:51

just so that you kind of grasp this,

24:54

this has happened to me multiple times.

24:56

back and built to last which was about

24:58

visionary companies and enduring great

25:00

companies and all that. Jerry Poris and

25:02

I set out our original question was to

25:03

study the concept of corporate vision

25:05

because it was sort of what would that

25:07

be was back before it was something that

25:09

anybody had ever studied. And then our

25:12

method of match pairs of these visionary

25:14

companies over long periods of history

25:16

led to a much bigger question which was

25:20

how do you build an enduring great

25:21

visionary company which is very

25:23

different than the smaller question of

25:25

what is corporate vision and how does

25:26

that work and so repeatedly in my

25:29

journey I've started out with what I

25:32

think is the question self-renewal

25:34

corporate vision whatever and I've ended

25:36

up with the method leading me to a much

25:39

bigger question that the method answers.

25:43

And so in this case, all of a sudden, as

25:45

I got deeper and deeper into it, I

25:47

realized I'm not studying self-renewal.

25:50

Self-renewal is a residual artifact of

25:54

really the big question. And the big

25:56

question is the title of the book, which

25:59

is the question we all face with, which

26:01

is what to make of a life. And we face

26:04

that question when we're young. You and

26:05

I faced it coming out of the fog of

26:07

youth. And what I came to grasp is that

26:10

cliffs are an amazing way to look at the

26:13

question of wrestling with what to make

26:15

of a life. Because

26:17

when you have a big enough cliff, like

26:19

Joannne's cliff, like the cliffs in the

26:22

study, you have to answer the question

26:26

again,

26:28

right? Partway through your life, when

26:30

you have one of a a big enough cliff,

26:33

you have to answer the question, well,

26:35

well, now what to make of a life?

26:37

because all that's done or all that's

26:40

changed. And then I realized there's a

26:42

third time which is when you're in the

26:44

later decades of life and many never get

26:46

around to answering this question and I

26:48

hope they will after reading this is

26:51

well now what to make of a life so that

26:53

my 50s 60s7s 80s maybe my 90s turn out

26:57

to be my biggest most creative most

26:59

impactful most interesting years rather

27:01

than sitting over here in inferiority to

27:04

my younger years. And so I essentially

27:08

it's very similar to what happened with

27:10

Bill to last with good to great

27:11

whatever. I started with a narrower

27:12

question. I came up with a method to

27:15

answer it and then realized that that

27:18

method was actually answering a big

27:22

question

27:22

>> bigger question

27:23

>> and then I just gave myself over to that

27:25

question and that's how I ended up

27:28

really framing the whole book. And then

27:31

as you know, and we'll probably get into

27:33

this, the seeds of that go all the way

27:36

back to a shattered kid, right? Trying

27:39

to figure out life. That is really kind

27:42

of the creative journey. And when you

27:45

get the book, it feels like God, it's so

27:47

it's almost like clearly linear, but you

27:50

write that way because you want it to

27:52

hang together conceptually,

27:55

but the creative journey of how you get

27:57

there is wonderfully dynamic. Well, a

28:01

few things. So, we are going to get to

28:04

childhood for sure, probably sooner

28:05

rather than later. And separately, as I

28:08

was reading this book, particularly

28:10

given the end of our second

28:12

conversation, I was really cheering for

28:14

you because I am in the middle of a fog

28:16

with a draft that is 850 pages long. And

28:20

I won't get into that, but I was like,

28:22

"Oh, so there can be light at the end of

28:24

the tunnel because honestly, I'm looking

28:25

at this thing and I'm like, this rock

28:27

just seems to get denser and denser. It

28:29

gets harder and harder to chip away at

28:31

it." So, congratulations. and I was also

28:34

very helpful as moral support to

28:37

>> me.

28:38

>> So are you in the fog on the book itself

28:41

or in a general Tim wandering in the fog

28:46

time? So I am I would say

28:50

in the inverse of where I've found

28:54

myself typically before and what I mean

28:56

by that is before

28:58

>> I would say I have had a lot of clarity

29:01

around specific projects. Here is the

29:04

book in front of me. Here is the podcast

29:07

I am building. Here is the

29:08

fill-in-theblank business project where

29:10

I would have extreme clarity.

29:12

>> Yep. And then in contrast to that I

29:15

would say broadly for life direction I

29:18

would feel like I had less clarity right

29:21

now and I I am quite content with this

29:25

for the time being. I have the flip side

29:27

which is I'm with a wonderful partner.

29:30

We are very clear on where we're headed

29:32

together

29:33

>> and I feel like that is the Archimedes

29:36

lever for everything else. I don't feel

29:38

like I have much to prove anymore from a

29:41

professional perspective, but I do also

29:42

want to end up where you are in the

29:45

sense of feeling like you have or in

29:48

fact having more energy, more fire

29:52

within you at 67 and 37, I do want that.

29:56

But on a project level, I have much less

30:00

clarity

30:01

>> in terms of what does Tim 3.0 4.0 look

30:05

like? because I do love the podcast. I

30:08

plan to continue doing it, but it's also

30:10

become one of the most saturated,

30:14

noisefilled playing fields imaginable.

30:17

And I think anyone who expects the same

30:21

music to play forever

30:23

probably does not anticipate the

30:25

inevitable, which is probably a cliff of

30:27

some type. Right? So, I have a fog as it

30:30

stands currently around a few things.

30:33

One of which would be writing. M so for

30:35

instance this 850 page behemoth do I

30:38

chip away at that which I find a little

30:40

bit draining to be honest. So, I've

30:43

actually put it on the back burner, or

30:45

do I say focus on a newer writing

30:48

project that I'm very, very excited

30:50

about. And is that in fact leaning into

30:54

my encodings, which is a term we should

30:56

probably define, or is it just the

30:59

allure of the novelty of the new? And

31:03

guess what? Surprise, surprise, as soon

31:05

as I get into the mud, I'm going to

31:08

still be paying the taxes that you need

31:11

to be prepared to pay. So that is a bit

31:13

of a

31:15

crossroads at which I find myself right

31:18

now.

31:18

>> My question for you is so first of all

31:20

just for anyone who's listening to this,

31:22

we're using the term fog and I'm just

31:24

going to put a quick context on that and

31:25

then ask a question

31:27

>> and so we just talked about the notion

31:29

of cliffs and as you you know the whole

31:31

study structure was around cliffs and so

31:33

forth and and so I I knew cliffs would

31:36

play a critical role in how I look at

31:38

things. I was really overwhelmed with

31:42

the prevalence of fog in the lives that

31:46

we studied. That was not something I

31:48

expected to find. And fog are these

31:50

periods of time where you're kind of

31:52

either in some portion of your life or

31:54

maybe overall in life at a given point

31:56

where you're lost, confused, befuddled,

31:58

disoriented, uncertain, right? And

32:01

there's kind of these clarity phases of

32:02

life. Like I'm in a clarity phase right

32:04

now. I was in a fog phase about 2013

32:08

2014 certainly in a fog in my 20s.

32:11

There's kind of fog phases and these

32:13

clarity phases and every person in our

32:16

study had these sometimes even extended

32:19

episodes of of fog which I found very

32:22

comforting in the end because the people

32:24

we studied had remarkable lives when you

32:27

summed up the entire thing but they

32:29

could lose a decade in the fog along the

32:32

way. And then in the wake of cliffs in

32:35

particular,

32:37

there seems to almost always be fog. So

32:40

fog can come at any time for a variety

32:42

of reasons, but the likelihood of fog

32:44

will follow a cliff based on what we

32:48

looked at in the study is that if you

32:49

have a big enough cliff, especially if

32:51

it was unexpected, the fog is likely to

32:55

roll in and can be very thick and very

32:57

befuddling. So that's why we're talking

33:00

about fog. So my question for you is I'm

33:03

curious as you are wandering around a

33:08

little bit in the fog and I think it's a

33:09

very interesting time as you describe it

33:11

of kind of well this question of the

33:14

things that you'd done up to this point.

33:16

Are you ready to be done with them? Are

33:19

you are you ready to extend out in a

33:22

different direction?

33:24

All these sorts of questions that are

33:26

swirling about. I'm curious if anything

33:29

in the book as you read it illuminated

33:32

for you or got you thinking about

33:36

navigating through this fog.

33:38

>> I would hope so. I took a lot of notes.

33:40

So, either I'm a very bad notetaker or

33:42

there are things for me to focus on from

33:44

the book. So, I would say a number of

33:46

things come to mind and I I could send

33:48

you photographs of these if if you're

33:50

curious at some point. Yeah. But in

33:52

terms of navigating fog, I think the

33:54

first is

33:56

rule number one, don't freak out. So,

34:00

and that was more of an interpretation

34:01

than something you said literally. But

34:03

in effect, like, hey, if you're in the

34:04

fog, guess what? Everybody ends up in

34:06

the fog.

34:06

>> That's right.

34:07

>> So, don't panic, number one. And then

34:10

there were a few there were more than a

34:12

few things but certainly a few things

34:13

that I found helpful and also a few

34:15

things that gave me terminology for some

34:19

explanatory power of things that have

34:20

happened to me in the past or things

34:23

that I've done in the past and we'll

34:26

we'll definitely talk about this but the

34:28

concept of return on luck and different

34:29

types of luck I found very compelling

34:32

>> and thinking of how you take advantage

34:36

of or widen the aperture on luck because

34:41

I I think broadly speaking luck is

34:44

thrown around as something you either

34:46

have or you don't

34:48

>> and it lands on you and exerts its force

34:50

but it's not quite that simple and I

34:52

think you put words to that that I found

34:54

very helpful and then in terms of

34:56

navigating the fog I would say you

34:59

talked about simplex stepping which I

35:01

think we may spend some time on but I

35:02

have I think upstream kind of cascading

35:06

questions that I want to ask you about

35:08

first principally around encoding.

35:10

>> Yeah,

35:11

>> I would say that with the fog

35:14

there were questions that I began to ask

35:17

myself that I've not yet answered and

35:20

this is part of the reason I was looking

35:21

forward to chatting with you. One of

35:23

which is how do I think about energy as

35:29

a core currency of life? And the reason

35:33

I say that this is not taken verbatim

35:35

from the book but it seems to be

35:39

fundamental right like outside of

35:41

accidents and so on like there is a

35:43

point when you die and that is the

35:44

sessation of energy

35:46

>> and if you have all of the greatest

35:49

intentions in the world the best laid

35:51

plans if you do not have the energy to

35:53

implement those things to execute

35:55

>> I don't want to say all is for not but

35:57

you're caught at a bit of a problematic

35:59

situation so when I'm reading about

36:02

these different case studies, these

36:04

profiles in the books and there were

36:07

there were so many fantastic ones. I

36:09

really have to say I love the Katherine

36:10

Graham

36:12

>> piece. Hard to love Katherine Graham.

36:14

>> Hard not to love because you see people

36:16

who are put into say cliff situations

36:20

and they are unprepared and then there

36:22

are counterex examples where people are

36:24

effectively have prepped for 10 or 20

36:25

years for the cliff they eventually face

36:28

and those are very very different.

36:30

>> Yes. in a lot of ways. And you also,

36:34

not to keep burying the lead on this,

36:37

have people who sort of methodically

36:39

find their encodings. And I want you to

36:42

distinguish that from strengths. You

36:44

have people who are forced into a

36:46

situation and thank God they just happen

36:48

to have an overlap with the

36:50

circumstances forced upon them and these

36:54

inner workings that allow them to find

36:57

their stride. as if you know Michael

36:59

Jordan was sent to like basketball

37:02

prison camp and like lo and behold what

37:04

luck you know he happens to be

37:05

incredibly good and and built for

37:08

basketball. So my question for you that

37:10

I want to hit on before we dive in if I

37:13

asked Joanne

37:15

why does Jim have more energy now than

37:17

he did at 37? How would she answer it?

37:19

because it seems to me like there might

37:21

be a piece of honing in on encodings as

37:24

a wellspring of energy, but you seem

37:25

like you've always been pretty good at

37:27

that, at least after some of your

37:29

experiences at Stanford. What would her

37:31

answer be, do you think?

37:33

>> Years ago, there was a profile being

37:34

done on me, and I I'm not big on a lot

37:36

of profiles. I'd rather just have people

37:38

read my books and take away the ideas.

37:41

But anyways, the profile was going to

37:42

happen. And so I said, "If we're going

37:44

to do it, we'll do it right." and I

37:45

invited the reporter out to Boulder and

37:48

he said, "I'd really like to spend some

37:50

time with Joanne." And I'm like, "Oo,

37:52

okay, here we go." And what kind of

37:55

profile is this going to be?

37:56

>> So, we're at breakfast and he says, "I

37:59

have one real question I really want to

38:01

ask you." If you just pick one word to

38:03

describe what it's like to live with

38:05

Jim, what one word would you use? Okay.

38:08

So, you got a picture.

38:11

I'm sitting there waiting for the answer

38:13

and I I'm wonder, you know, always an

38:15

adventure, inspired, energizing,

38:18

creative, right? All these things are

38:20

going through my mind as possible. She

38:21

gets one word and after a long pause,

38:23

she just kind of looks at him

38:25

completely, completely serious,

38:27

completely just straight, you know,

38:29

single answer, exhausting. You know,

38:32

it's hilarious cuz I knew that word was

38:35

coming. I like And that's me projecting.

38:38

I'm thinking about my partner. That's

38:40

hilarious. I literally in my head have

38:42

exhausted

38:43

>> exhausting.

38:44

So she would relate to the question.

38:49

I think what she would say is that yes,

38:52

I've always had a high energy set point.

38:54

And just as an aside, it's not something

38:56

I think I even put in the book, but the

38:57

way I came to think of it is that we all

39:00

have kind of an energy set point. And

39:03

maybe mine is just a reasonably high

39:06

energy set point. And just to be clear

39:08

though, I think that the thing I would

39:10

want people to take away from what they

39:11

read here is that whatever your energy

39:13

set point, you know, you can have

39:14

variation around that set point and and

39:17

the question is how do you lead your

39:19

life in such a way that you're on the

39:21

positive side of that variation in the

39:23

set point and it sustains until you run

39:26

out of breath. Because so many what

39:28

happens is they reach a certain point

39:29

and they go below the energy set point

39:32

because of whatever sets of reasons and

39:34

end up with maybe 20 or 30 years of

39:37

their life essentially off the table and

39:39

that's an unfortunate loss to the world.

39:42

I think Joanne would say one, I'm one of

39:45

those people who

39:47

really set out in life somehow to end up

39:53

expending my energy in things that I

39:58

derive tremendous

40:00

intrinsic

40:02

pleasure from doing the actual doing of

40:06

it. M

40:07

>> that sense of if you're doing it, you

40:09

can't not do it right. Like I like you,

40:14

I don't have to demonstrate that I can

40:17

do well at what I do. I don't have to

40:19

worry about do I know how to I don't

40:21

know have a teaching moment or whatever,

40:23

right? How to come up with the right

40:25

questions to ask somebody running a big

40:27

company. But if I sit down, I still get

40:30

joy out of preparing for a a moment or

40:34

being at it or or just a sense of

40:36

excitement that morning because the

40:38

actual doing is something that I so love

40:42

that I put in the book and Joanne is the

40:45

one that helped me sort of see this. I'd

40:47

always thought of myself as an

40:48

incredibly disciplined person and

40:49

everybody else saw me as really

40:51

disciplined and I kind finally came to

40:52

the conclusion I'm really not very

40:54

disciplined. I mean, I am somewhat. But

40:56

look, if you just can't help, you just

40:59

can't stop yourself

41:01

>> from preparing, from getting ready to do

41:04

the very best you can because you're

41:06

doing something that just so pulls it

41:08

like you can't stop yourself. Well,

41:11

that's not discipline. You're just

41:13

compelled. You're just it's it's almost

41:16

a form of compulsion, which isn't

41:18

discipline, right? and and if it's sheer

41:20

love of the actual doing itself,

41:25

well, how's that discipline? Just love

41:27

doing it. So, that's one. But I think

41:30

she would also say that like you love

41:34

having a big project and this has been a

41:36

huge project, right? So, for 12 years

41:39

from the time I first started noodling

41:41

on this till when I finally finished the

41:43

writing, when I wake up in the morning,

41:45

I don't have any question until the

41:47

book's done. Maybe I'll go into a fog

41:49

now. I had no question what was in front

41:51

of me at 4:00 a.m. There's always the

41:53

project, right? Every single day there's

41:56

the project and that's energizing even

41:58

if it's huge and monstrous. And and then

42:01

the third is this sense of extending out

42:03

and circling back that that I saw in all

42:06

the people in the study of that this

42:07

really interesting it'll be very

42:09

interesting to see for you as well as

42:10

happens with this with this sense of

42:12

this notion of kind of radical

42:14

reinvention isn't really what we saw.

42:17

There weren't people who quote radically

42:19

reinvented themselves. It was this

42:21

organic process of kind of extending and

42:25

pushing themselves out into new modes or

42:28

new things or new activities etc. Kind

42:31

of an extension outward. But then they

42:34

would always find a way to circle back

42:36

to things that they had built upon

42:40

previously as almost a form of fuel to

42:43

further extend out. Robert Plant's one

42:46

of my favorite people in the study and I

42:48

love how over the, you know, what keeps

42:50

him so full of fire for music and for

42:53

singing all these decades later. And if

42:56

you look at him, he's like, you know, he

42:59

sure he's no longer in Zeppelin. He

43:00

doesn't need to be. He's he was

43:02

extending out into bluegrass and he was

43:04

extending out into, you know, going off

43:06

to the desert and playing with trans

43:08

musicians and all these kinds of really

43:10

and learning to blend his voice with

43:12

Allison Krauss. I mean, utterly

43:13

marvelous extensions with Allison Krauss

43:16

or with some of his extensions. He'd

43:18

come back and rebring to life a Led

43:21

Zeppelin song.

43:22

>> Mhm.

43:22

>> And then they would do a bluegrass

43:24

version of Black Dog and just that sense

43:28

of this extending and circling back.

43:31

Well, this study for me, you could look

43:33

at it as I'm doing something radically

43:35

new. Yes, it's a new question, new study

43:39

set, all that. But I'm also circling

43:42

back

43:44

and to what I've always loved to do,

43:46

which is to take a big giant messy

43:48

question,

43:50

put a methodology around it, and spend

43:52

years figuring it out. Right? That's

43:54

consistent. That's a circle back. The

43:56

extendout is it's a different question

43:58

and different unit of analysis. So, as

44:01

both. And then the last is this, and we

44:03

talked about this, I think, a little bit

44:04

in one of our previous ones, but I would

44:06

really put it this way. When I was

44:08

younger, I had a lot of fire, but it was

44:11

really painful fire.

44:14

It was burning hot red molten lava in my

44:18

stomach.

44:20

Almost like channeled rage, chneled

44:23

ferocity.

44:23

>> Yeah, I know the feeling.

44:25

>> Yeah, you know that feeling, right? And

44:28

I used to worry that if I ever lost

44:30

that, I'd lose my drive.

44:34

And I think what's happened, I know

44:37

what's happened is the fire's changed.

44:40

The fire used to be like this molten hot

44:43

burning ferocity in the belly. And now

44:48

it's like this. It's not red. It's I

44:51

think of it as green and yellow and it's

44:53

like this sustained warming glow. And I

44:56

don't have that. I do not have those

45:00

kind of insecurity. prove myself kinds

45:03

of things that are driving me

45:07

and as a result my energyy's gone up and

45:10

I think that because the fire is

45:13

different because the fire is this

45:16

sustained warming glow it is just like

45:18

constantly generative and I think that's

45:21

a really really big part of it that

45:23

sense of like you write a sentence and

45:24

you look at it and you go wow

45:27

that's almost a good sentence

45:29

>> so let me ask you about

45:31

color shift, right? Going from the red

45:33

to the greenish yellow. Yeah.

45:35

>> Is that a byproduct of age in the sense

45:37

that you've amassed a corpus of work

45:40

that at some point you cannot with a

45:43

straight face to yourself justify being

45:46

redot because you're like, look at this

45:48

CV. I cannot with any sincerity say that

45:52

I have anything left to prove. Is is

45:54

that what provoked the shift? Is there

45:56

something else? What what actually

45:59

happened that led to that shift in fuel,

46:03

so to speak?

46:04

>> First of all, I would imagine that a

46:06

number of people and maybe you yourself

46:09

relate to the raging burning lava coals.

46:13

>> Oh, yeah. Oh, boy.

46:14

>> And you kind of cling on to them because

46:16

you feel you need them. And I guess I'm

46:19

just a data point of one that I don't

46:20

need them to have even more energy. And

46:23

so there is life without them that's

46:25

really wonderful. and your best stuff,

46:28

your best work coming from it. I don't

46:30

think it was, oh, I mean, it's nice that

46:34

Joan and I don't need to worry about

46:35

like are we going to hit the pavement

46:38

like having no safety net and all that

46:40

kind of worry and fear that we used to

46:42

live with of just genuine almost terror

46:44

of are things going to work.

46:46

>> So, it's nice to not have that, but I I

46:48

don't think that's the essence of it. I

46:51

think it didn't happen like a flash.

46:54

I think what a lot of what really

46:56

happened

46:58

happened as a result of studying the

47:01

lives in this book. I really mean it.

47:03

the last 12 now plus years since I

47:06

started the first nibblings of this

47:08

project in 2013

47:10

and the journey of doing this book so

47:14

transformed me and I think that I was

47:18

probably prepped for that but it was by

47:20

somehow living alongside them in their

47:22

lives it was like affecting me and I

47:26

think one of the ways it affected me is

47:27

was I saw them you just look at the

47:30

sheer rapturous joy of Robert Plant

47:33

blend ending his voice with Allison

47:34

Krauss.

47:36

Or you look at that this wonderful video

47:39

I came across of Grace Hopper, the great

47:41

computer scientist who invented software

47:44

essentially. It's amazing story. Silicon

47:46

Valley should know her story more. It's

47:48

really an incredible story. And she's on

47:50

Letterman at I think age 79. And she is

47:53

like one of the most sparklefilled,

47:56

firefilled. She just radiates out of

47:59

that Letterman interview. And it's just

48:01

absolutely marvelous. I could just go

48:02

through case after case where what I saw

48:04

was, you know, Barbara Mcccleintoch

48:07

solving the geneticist solving a

48:08

genetics puzzle and and her sense of she

48:11

didn't fear dying in a car crash because

48:13

there were all these car crashes that

48:15

she was driving across the country so

48:16

much as she feared dying in a car crash

48:18

before she'd solved the puzzle that she

48:20

had, right? Cuz she just so needed to

48:22

solve the puzzle. And every life was one

48:24

of these ones where it's like they got

48:25

to this point where the thing that they

48:30

were engaged in in doing was so

48:33

reinforcing in itself for itself.

48:38

And I think somehow just being so close

48:41

to their lives while I walked through

48:43

them had this effect on me and it began

48:47

to soften me. It's very hard to explain,

48:50

but if you spent years alongside them at

48:54

each step of the way through their

48:55

lives, which is what I did,

48:58

they like rubbed off on me.

49:00

>> Mhm.

49:01

>> And they all somehow got to this point

49:03

and I think that it just affected me. I

49:06

mean, I can't really explain it and

49:08

other than that is it just affected me.

49:11

>> Mhm. Let's look at another facet of this

49:14

same prism because looking at for

49:18

instance whether it's you whether it's a

49:21

geneticist or any real figure in the

49:24

book that you've profiled finding your

49:30

power zone with respect to encodings and

49:33

I want you to differentiate that from

49:34

strengths seems at the very top of the

49:37

pyramid in some respects or the base

49:39

depending on how you want to look at it

49:41

But if we're trying to put dominoes in

49:44

order, that seems like a very important

49:45

domino to tip over first.

49:48

>> It seems to be a prerequisite for a lot

49:49

of the other things. And I'm wondering

49:53

if somebody flew out to spend time with

49:55

you for a day and they were like, "Jim,

49:57

I know you're good at asking questions.

49:59

That's what you do. How the hell do I

50:02

find what my encodings are?" Because

50:04

without that, it seems like having the

50:08

conviction to know when you wake up

50:10

exactly what you're going to do becomes

50:12

a lot harder. And I'm not trying to

50:15

speak for you, but it does seem to me

50:17

that if you are always suffering from

50:19

decision fatigue, paradox of choice,

50:22

man, that's a great way to use up all

50:24

your chi and end up dead before you

50:25

should be. I mean, creatively or

50:27

physically or otherwise. What are

50:30

encodings? If they're different from

50:32

strengths, how are they different? And

50:34

how do you find them if you're not lucky

50:36

enough to be like a Yo-Yo Ma who gets a

50:38

cello handed to him when he's four or a

50:40

Tiger Woods whose dad's like here you go

50:43

buddy at age god knows whatever right so

50:46

we should go back and forth on this a

50:48

little bit because there's kind of two

50:49

strands that will come together and I

50:51

think they're for me were really

50:54

>> really really eye opening and very

50:56

uplifting in the end by looking you know

50:57

the study across these lives because

50:59

there's the luck piece of kind of how

51:02

the roulette wheel of your life spins as

51:04

to which encodings you discover.

51:07

And then there's what the encodings are.

51:10

They're actually kind of joined, if you

51:12

will, as an idea. We have multiple

51:15

examples in the book of where people it

51:17

was almost like by well chance in some

51:20

ways that they discovered the set of

51:22

encodings that they that they decided to

51:24

dedicate themselves to.

51:26

>> So first of all, let's just talk about

51:27

encodings. I'm going to describe what

51:29

encodings are and how they kind of work.

51:32

But if you don't mind, Tim, given that

51:34

you're in the fog, I want to ask you a

51:35

question about encodings for yourself.

51:37

>> Love questions.

51:39

>> Encodings are these kind of durable

51:41

capacities that reside within and

51:45

they're awaiting discovery through the

51:47

experiences of life.

51:49

And first huge thing about encodings is

51:52

most of us our lives will come to the

51:54

end with probably vast swaths of our

51:56

encodings never discovered.

51:59

And the way I think about it and and you

52:01

know this from the book but I really

52:03

like to help people who are listening

52:04

hear this is that I came to think of it

52:07

as like a constellation of encodings.

52:10

They're just you have a constellation of

52:11

encodings. I have a constellation of

52:13

encodings. Everybody on the planet has a

52:15

constellation of encodings. And it's

52:17

like a vast galaxy of encodings. But at

52:19

any given moment, your life is looking

52:21

through like a window frame at those

52:23

encodings. And that what happens is that

52:26

there's points in life where the window

52:29

frame, right, captures a set of a big

52:33

bright set of those encodings coming

52:34

through the window and you're kind of in

52:36

frame with them. And then if the window

52:38

frame shifts again and doesn't capture

52:40

very many encodings, you're kind of, if

52:42

you will, out of frame, you're not

52:44

really capturing many encodings. the

52:46

encodings are still there, right?

52:48

They're they're just there, but the kind

52:50

of your life can shift around whether

52:53

you're capturing a set of encodings or

52:55

whether you're really not. So, I think

52:57

about the test pilot John Glenn, who you

52:59

read about, and how he was not capturing

53:02

encodings when he was a young man. At

53:05

first, I mean, his parents thought,

53:06

well, maybe he'll come into the family

53:08

business or, you know, maybe you should

53:10

go try to be a doctor. But he just

53:12

wasn't I mean, the encodings were not

53:14

really in frame when he was like taking

53:16

chemistry and physics and things like

53:17

this. And then through a a happen stance

53:20

event, he was able to get a pilot's

53:24

license paid for by the government that

53:26

was looking to train some pilots. And he

53:30

goes and he signs up for this, convinces

53:32

his parents to let him do it. And the

53:34

moment he gets into an aircraft, it was

53:36

like

53:38

click. I mean, the way the aircraft

53:41

felt, eventually being able to wear the

53:43

aircraft like a glove, his encoded

53:46

ability that he only discovered, he

53:48

didn't add it. It was just there, that

53:50

under extreme danger and immense speed,

53:54

he could have a heart rate that is, you

53:57

know, everything slows down. If

54:00

somebody's flying behind me in a

54:01

supersonic jet trying to knock me out of

54:03

the sky over Korea in the Korean War, my

54:07

heart rate's probably not going to go

54:08

down. But John Glenn's would go down,

54:10

right? And then of course he becomes an

54:13

astronaut. Gordon Cooper is match pair

54:14

very similar. And so it's all of a

54:16

sudden bang. And then after his career

54:20

that came to an end. Very interesting

54:22

little story of how he thought they

54:24

finally concluded that John Kennedy had

54:27

pulled him out of the rotation so that

54:28

he wouldn't be able to go to the moon

54:30

because Kennedy felt he was too valuable

54:33

as a national hero. And so he couldn't

54:38

be an astronaut anymore really. And that

54:40

was his cliff. and 10 years and he went

54:44

off to Royal Crown Cola. And what I love

54:48

is this little detail where he's got of

54:51

his memoir, his time at Royal Crown Cola

54:54

is like almost 10% of his life and it's

54:58

0.2%

55:00

of his memoir.

55:01

>> Not much to report here.

55:02

>> Exactly. Exactly. And so he's still John

55:05

Glenn, but what happened is the window

55:06

frame shift shifted and it wasn't until

55:09

he got back into the Senate where it

55:10

shifted again. You know, he I'm sure he

55:13

was an adequate executive, but it wasn't

55:14

like when he was flying fighter jets and

55:17

>> going up and orbiting the Earth, right?

55:19

He was now kind of out of frame.

55:21

>> Yeah.

55:22

>> And so the essence of it is encodings

55:24

are there to be discovered by the

55:26

experiences of life.

55:29

And when they click into frame, it's

55:32

trusting them almost if you don't know

55:35

where they're going to go. In many

55:37

cases, the people didn't know where they

55:39

were going to go. And

55:42

yes, you turn encodings into more

55:44

strengths by training and discipline and

55:47

you know, all those sorts of things. But

55:51

John Glenn could have done 10 MBAs

55:54

and he would have never been as encoded

55:56

for being a business executive,

55:58

>> right,

55:58

>> the way he was encoded for being a

56:00

senator and encoded for being a fighter

56:03

pilot and an astronaut. And so the key

56:08

is

56:09

discovering some set of them and letting

56:12

them letting them go. And that's an

56:14

empirical set of observations. So now I

56:16

come back to the question for you.

56:18

you've written.

56:19

>> I mean, you clearly have encodings for

56:21

doing what we're doing today.

56:24

You have other kinds of encodings around

56:26

just sheer curiosity and so forth. So

56:30

have you thought about this as you were

56:32

making notes as you were thinking about

56:34

what are your encodings

56:37

as distinct from sure you've turned your

56:39

encodings that you've discovered into

56:41

strengths but the things that were

56:43

really have a basis of of encoding

56:46

coming into frame I'm curious what

56:49

occurred to you and especially as you

56:51

think about like what's going to be next

56:53

>> all right I'll return serve so I'll I'll

56:56

then have a ton of other questions But

56:59

I'll answer that in a maybe a bit of a

57:02

roundabout way. I have tried to ferret

57:05

it this out before for myself. I think

57:08

with different degrees of success. I

57:11

think I have in most cases because I

57:15

assume my self-awareness is very

57:18

imperfect at best

57:20

>> benefited from asking other people

57:22

questions who are very close to me. And

57:26

those have been

57:28

coaches, agents, friends, collaborators,

57:34

almost like a 360

57:36

degree kind of analysis. And some of

57:40

those questions have included,

57:42

when have you seen me at my best and

57:45

when have you seen me at my worst?

57:47

Right? What do you think I find easier

57:50

to do than other people? These types of

57:53

questions. And I suppose where I've

57:56

landed, but let me postpone the

57:58

punchline first to say that

58:02

I've really found it fascinating to look

58:04

at, this is going to be seem like a hard

58:06

left to people, but the sort of Soviet

58:09

and also Chinese approaches to sourcing

58:12

athletes.

58:13

>> How on earth are they so successful? How

58:15

were they so dominant for so long? And

58:18

yes, you can explain some of it with

58:20

kind of top- down autocratic

58:22

decision-m and policym and so on. But in

58:25

China, for instance,

58:27

they will scout by doing some very very

58:30

simple things. They'll go to every

58:32

elementary school you can imagine and

58:34

have kids do a broad jump, right? And

58:36

they'll make it fun. It's not some kind

58:38

of back whipping exercise, but they'll

58:40

have them do a handful of things. Hold a

58:42

broomstick overhead and get into a

58:43

squat, right? And that's how they start

58:45

to source potential candidates for

58:50

>> Olympic weightlifting gold. But

58:52

unfortunately, as a single person, as an

58:54

N of one, you don't have the luxury of

58:57

infinite time to try everything, right?

59:00

This has been an ongoing open question

59:02

for me and I haven't yet used any of

59:06

them, but looking at things like, okay,

59:08

well, is is a strength finder test

59:10

helpful for this? It's like could you do

59:12

five or six of these and look for the

59:14

overlap to try to get some direction so

59:16

that you're not penalized for trial and

59:18

error by losing decade after decade.

59:21

Where I've landed for myself is

59:24

through my own experimentation, I think

59:27

asking a lot of dumb questions. I'm very

59:29

good at asking seemingly dumb questions,

59:32

which often are not dumb. Sometimes they

59:34

are just straight up dumb, let's be

59:36

honest. But often times they're

59:38

questions that could be or already are

59:41

on the minds of a lot of people. And I

59:43

think I'm good at putting on beginners

59:46

glasses and being very persistent like a

59:49

dog with a bone if I don't get an answer

59:51

to a supposedly dumb question. And those

59:54

lead interesting places. I think I am

59:56

also good and this is a blessing and a

59:59

curse which will lead into some later

60:02

questions about not getting trapped in

60:04

various doom cycles and something we

60:06

talked about before which is sort of the

60:08

50 3020 from respected faculty.

60:12

I am a novelty seeker that's an

60:14

intrinsic drive that I have in a lot of

60:17

ways and the upside of that is that I

60:21

can do angel investing in in different

60:24

industries. I can interview people from

60:26

yet a different set of worlds

60:29

and I can borrow practices and copy and

60:34

paste different principles from one area

60:36

into a disperate area and sometimes

60:39

those really really work. So I think I'm

60:42

good at combining those worlds

60:45

separately and maybe people listening

60:48

can give me feedback if they're

60:49

interested in this. A friend of mine,

60:52

one of my closest friends said to me,

60:53

you know, you should really do some

60:55

podcast episodes where you are recording

60:58

conversations that you have with

61:00

founders because I've I've invested in

61:02

100 plus companies over more than a

61:04

decade, probably close to two decades.

61:06

And he said to me, he's like, "There are

61:09

things that you are really good at that

61:10

I don't think you realize you're good at

61:12

in terms of really pinpointing terms,

61:16

positioning,

61:18

and various other things that I do

61:20

routinely every week with startup

61:22

founders anyway. I'm having those

61:24

conversations anyway." And so I've been

61:26

experimenting with recording those.

61:29

>> And I even go back and listen to it and

61:31

I'm like, "Yeah, I don't think there's

61:32

anything special in here." And he's

61:34

like, "That's the problem." He's like,

61:35

"You don't think it's anything special

61:38

because it's so easy for you." He's

61:39

like, "It's actually not easy for most

61:41

people." So, those are a few scattershot

61:44

thoughts that come to mind, but for

61:47

myself and certainly also for people

61:50

listening, I I am still wondering if

61:52

there are ways that people can

61:56

facilitate the process of finding those

61:58

encodings. So I was listening very

62:00

carefully to what you're saying and a

62:02

couple things really popped into my mind

62:04

as as you were you were talking is that

62:07

first of all I think if we reround well

62:09

I did rewind the tape of their lives

62:12

right and you know I wouldn't describe

62:13

that the process of kind of coming into

62:16

a frame with a set of encodings was a

62:18

systematic process it was pretty organic

62:20

and pretty messy if you will and I think

62:22

the thing that really stood out is it

62:24

wasn't that there was some kind of you

62:26

know deliberate test taking or anything

62:28

like at it was that light kind of spun

62:30

them into a situation where

62:34

they could feel the the encodings kind

62:37

of light up if you will. And I think

62:39

what really stood out the more I think

62:41

about this the question is less about

62:44

well there are two ways in which I want

62:46

to kind of sharpen the question a little

62:48

bit for you. One is is that it's not

62:50

even entirely about discovering

62:52

encodings. I think people are getting

62:54

clues to their encodings based on their

62:56

experiences in life and input from

62:57

others, which is a very interesting

62:58

piece of this all the time.

63:01

>> What I think really stands out to me

63:02

about the people that I studied is that

63:05

regardless of whether they got support

63:06

from others, like John Glenn's parents

63:08

didn't want him to be a pilot and they

63:10

wanted him to be in the family business

63:12

or be a doctor, Robert Plant's parents

63:14

didn't want him to be a singer, they

63:16

wanted him to be an accountant. Think

63:18

about that. I mean with all that I mean

63:20

you know you go through these these

63:23

different ones. What really stood out is

63:26

that when they got a sense for them they

63:28

trusted them. It was their trust of them

63:31

when they got a glimpse of them. That is

63:33

what really stood out to me. They once

63:35

they felt them they didn't really start

63:38

questioning them or let other people

63:39

talk them out of them or listen to what

63:41

other people think they should do. And

63:44

so if you said Jim 100 points allocate

63:47

between two buckets. How much of it is

63:49

about discovering a set of encodings and

63:51

how much of it is it about trusting the

63:53

encodings you've discovered? I'm going

63:55

to put 70 points on trust because I

63:57

think we're getting clues all the time.

63:59

The second is that you said something

64:01

about asking people what you think you

64:04

do better than others.

64:05

>> This study changed my view on that. I

64:09

think it's about doubling down on what

64:12

you can do better than other ways you

64:16

could expend yourself.

64:17

>> Mhm. which is a very different question.

64:19

>> Yeah, it's very different. It's a very

64:21

different question. It's like I could

64:22

expend myself asking these supposedly

64:25

dumb questions or I could expend myself,

64:27

you know, in some other way. And it's

64:30

not competitive comparative to others.

64:32

It's this is in frame and this is out of

64:35

frame. And then I have learned something

64:38

in my own experience. This book is not

64:40

about business. It's not about

64:42

leadership. It's not about management.

64:43

There's a few ways though that it's

64:45

really affected me a lot when I think

64:47

back to my prior my classic work and one

64:50

way that it has really affected me is we

64:54

talk about the right people on the bus

64:55

from good to great still true but what

64:58

I've really come to see is it's about

65:00

the seats and whether people are in

65:03

seats where they're in frame in that

65:05

seat whether they are in a seat for

65:07

which they are encoded for that seat and

65:10

in a seat that feeds their fire and As I

65:13

began to study the people in in my work,

65:15

what I found is that they gravitated

65:17

towards some walk of life, some arena of

65:20

activity where they really hit a big

65:24

bright set of their encodings. It really

65:26

fed their fire and then they just kind

65:28

of went once they kind of clicked into

65:30

frame. And I think that I used to spend

65:33

a lot of time trying to turn people into

65:35

what they're not and feeling very

65:37

frustrated with what they're not. And as

65:40

I did this study, one of the things that

65:42

just really went over me like water and

65:45

like just softening me and softening me

65:48

and softening me is I began to realize

65:50

that what I really had to learn how to

65:52

do was to begin to find

65:57

what the people around me what their

65:58

encodings are. me for people on my team.

66:01

Part of my responsibility as a leader of

66:04

a small bus is to really be attuned to

66:08

me observing the encodings based upon

66:11

what people do of the people around me

66:14

and then to begin to shift in steps

66:17

their responsibility so that in what

66:19

they're doing here is increasingly

66:21

clicking into frame so that then what

66:24

happens is my emotional experience is

66:27

not being frustrated with what they're

66:29

not and truly being almost at a level of

66:33

almost awe grateful for what they are.

66:38

And when that happened, their lives got

66:41

better, my life got better, and I played

66:44

a role in helping them discover their

66:46

encodings, mainly by experiments, like

66:48

testing them with something, see how

66:50

something works, right? And then I could

66:52

see the encoding flash, and then I'd

66:54

move the responsibility, and I'd click

66:55

them some into frame. And it's been a

66:57

marvelous joyful journey to see that

67:00

happen. And I have people who are in

67:01

frame and they just it's astounding for

67:03

me to see. And so I think that notion of

67:06

other people, but I'd flip it around

67:07

which anybody who has teams,

67:10

anyone who leads organizations or

67:11

companies,

67:13

if you spend emotional energy feeling

67:15

frustrated with what people are not,

67:18

you've got them in the wrong seat.

67:21

They're out of frame. And the question

67:23

is, if you have a bus issue, you deal

67:26

with it. they're not they shouldn't be

67:27

on the bus. But the real question could

67:30

be you have them in a seat for which

67:32

they that doesn't line up with their

67:33

encodings that doesn't feed their inner

67:35

fire. And if you try to spend your life

67:39

trying to turn them into what they're

67:40

not, they'll be miserable and you'll be

67:44

miserable.

67:46

And I think you other people can really

67:49

play a role in helping you see what

67:52

those encodings are. I've had number of

67:54

friends who run large companies who and

67:58

not not to say this is the right tool

68:00

for everyone but who've used any

68:03

actually as a sort of huristic.

68:05

>> What's your point on the anagram?

68:07

>> Which type am I or what's my perspective

68:08

on it?

68:10

>> Both.

68:11

>> Have you identified an anagram point for

68:13

yourself?

68:13

>> I'm a self-preservation six which

68:16

>> honestly

68:17

>> I'm married to a

68:19

>> There you go. It resonates for me. I

68:21

have a bunch of caveats that I'm about

68:23

to put out, but it resonates for me. I

68:26

have found it to greatly inform doing a

68:31

post-mortem on things and people who

68:32

have not worked in my organization.

68:35

Organization is a very high flutin term

68:37

for a very very small team and people

68:39

who have worked over time. There are, I

68:43

would say,

68:45

to my mind, irrefutable patterns. Like,

68:48

it's so clear the types that work and

68:51

the types that don't. And there's no

68:53

right or wrong. It's just for me as a

68:57

strong willed, hopefully decent leader,

69:00

but at the same time very demanding

69:02

person with certain preferences and so

69:04

on. There are certain people on the bus

69:06

who work and certain people who don't,

69:07

and anyagram I found very helpful for

69:10

that. I think Shopify and Dropbox both I

69:13

think still use enagram as two examples

69:15

but very good for conflict resolution as

69:17

well. The the caveat is sometimes I

69:21

think at least say in Silicon Valley

69:23

that anyagram is an acceptable horoscope

69:26

for tech guys. Um,

69:30

I mean it definitely rhymes in some

69:32

ways, but when I read my particular

69:37

and it's helpful to have a person who is

69:40

experienced with typing do this. I'm

69:42

sure there are online tools that can

69:43

also help. Side note, also found this

69:47

incredibly helpful. People are going to

69:48

hate this. Some people are going to hate

69:49

this, but for thinking about dating and

69:52

ultimately ending up with a woman who is

69:55

an incredibly incredibly good match for

69:57

me and vice versa, I'm a good match for

69:59

her,

70:00

>> but the enagram was dead on. I was like,

70:03

this is nonsense for the like I just

70:05

don't believe it can be that simple. And

70:06

it's not that simple, but incredibly

70:10

helpful. So I would say there are some

70:12

people who go down the rabbit hole to an

70:16

extent that I think ends up turning

70:19

everything into an enagram exercise. I

70:21

think that's probably losing the forest

70:23

for trees. But as one input of many,

70:26

I've I've found it helpful. And let me

70:31

ask you a question for for you

70:32

personally, and this could also be

70:34

reflected in people in the book, but for

70:35

you, this is one of the 7,000 highlights

70:38

I had from this morning over my several

70:40

cups of coffee.

70:41

>> So, this is I I can't recall if this is

70:44

from our first or second conversation,

70:46

but let me just read for a second here.

70:48

All right. Well, here here's the the

70:50

recap. Jim was clear that he didn't want

70:51

a half-life of quality in his work. I'll

70:55

skip forward a little bit. When he was

70:57

invisible at Stanford, he could do deep

70:58

work and long cycles of reflection for

71:00

six years. He worried that if he became

71:02

visible, he might wake up years later

71:03

and realize his subsequent books were

71:05

only half as good because he hadn't

71:06

returned to the wellspring of quiet

71:08

solitude.

71:09

>> Yeah.

71:10

>> Separate note, people should listen to

71:11

these conversations, but one of the

71:13

commonalities of your plus two days in

71:15

your spreadsheets were either, I

71:17

believe, intense solitude or highly

71:19

socialized, but very little in between.

71:22

All right, coming back to what I was

71:23

reading. He wanted quality to get

71:25

better. Here's the part that I

71:27

underlined. He asked respected faculty,

71:29

this is at Stanford, how they spent

71:30

their time and got a consistent answer.

71:33

50 30 20.

71:35

>> Yep.

71:36

>> And to elaborate on that, it's pretty

71:38

simple. 50% equals new intellectual

71:41

creative work. 30% equals teaching. 20%

71:44

equals other stuff, committees, etc.

71:46

>> Yep.

71:47

>> Okay. And you organized your life and

71:50

tallying things. I do still to this day

71:53

>> and you still do that. So people should

71:55

listen to our prior conversations on

71:57

that. But this 50% new intellectual

71:59

creative work, 30% teaching, 20% other

72:01

stuff, committees, etc. And this might

72:03

feed into the going to screw up the

72:06

exact terminology, but the sort of doom

72:08

cycle of competence or or whatever it

72:10

might be. What I found is one of the

72:13

penalties of being a novelty seeker is

72:17

that sometimes I will get pulled into

72:19

things that I am quite good at. They

72:22

could be new, they could be older, that

72:24

do not align super strongly with my

72:27

encodings, right? Y and so the days end

72:29

up being very choppy. In other words,

72:32

I'm doing a lot of management stuff.

72:33

Maybe I've said yes to a speaking

72:35

engagement I regret. Maybe I've invested

72:39

in a few too many startups and all of a

72:41

sudden I'm on Zoom calls when I'm

72:44

quietly grinding my teeth because I feel

72:46

like I should be working on a book

72:48

project etc etc. And my question is a

72:53

have you ever succumbed to this type of

72:56

gravitational pull to other things where

72:58

you end up kind of managing more than

73:00

making perhaps

73:02

>> and then separately if that's true how

73:05

have you corrected course

73:06

>> there's kind of two aspects of how I

73:11

have really struggled getting pulled

73:13

first of all just way earlier in my life

73:15

I I was very close to you know I was

73:18

getting pulled into things that I was

73:20

not going to be coded for. And

73:21

fortunately, by a series of really good

73:23

events and choices, I ended up very much

73:26

in frame. But if id stayed too long

73:28

doing some of those things or taken some

73:30

opportunities that were very glittering

73:33

opportunities that my life may have

73:35

taken a very different path, I think I

73:37

would have ended up successful and out

73:39

of frame and I think that that would

73:40

have been an unfortunate outcome. I

73:44

think that so the two areas that I've

73:47

had to work with and I eventually

73:48

finally got my way to both to succeed at

73:50

both of them. The second one was harder.

73:52

First one was that you're right about

73:54

that thing about visibility.

73:57

I was always prepared for failure.

74:00

I was not prepared for success.

74:03

>> Yeah.

74:04

>> And when success came, it surprised me.

74:07

Number one, I was like, you know, okay,

74:09

I was prepared for the catastrophe on

74:11

the other side. I didn't expect this to

74:14

be coming and now I got to deal with all

74:15

this stuff coming at me. And all of a

74:18

sudden you have all these wonderful

74:20

things. Some of them maybe not so

74:22

wonderful, but they're all coming at

74:23

you, right? And you have all these all

74:25

these voices and and people and

74:27

opportunities and glittering things that

74:30

that could pull you out of what you're

74:32

really encoded for because of all this

74:35

wonderful opportunity and noise coming

74:38

at you. And early in that sort of

74:41

reeling from the su I was in sort of a

74:43

fog of success phase and I was I was

74:48

really trying to sort through like how I

74:50

would allocate my time and I was kind of

74:52

reeling on my back feet and I would say

74:54

yes to things that later that today I

74:57

would never in a million years say yes

74:58

to but I did whether it be involving too

75:01

much travel or whatever sorts of things

75:02

but I began to realize man my whole life

75:05

could be sucked away accepting

75:07

opportunities and so I had to really

75:09

fight that and to eventually just kind

75:11

of clamp it all down, but to do it in a

75:14

really systematic and disciplined way.

75:16

And that's when I started counting my

75:17

hours, right? I basically just like I

75:19

got to have above a thousand creative

75:20

hours every 365 day cycle every single

75:23

day looking back for 50 years without a

75:26

miss, right? I just set that I will not

75:27

ever break it. And and then the other

75:30

was to begin using very very disciplined

75:33

mechanisms for what I would say yes to.

75:35

We have a punch card system as something

75:37

that I, you know, was very impressed by

75:39

Warren Buffett's view of the world,

75:41

which is, you know, any use of you is an

75:43

investment. It's a punch and you can't

75:45

get it back. And so when we're laying

75:47

out for the year what sorts of things I

75:49

will say yes to, we literally have every

75:53

year we we will be talking, well, what's

75:54

the punch card look like? How many

75:56

punches are left? And it's not a

75:57

question if somebody calls up and says,

75:59

are you free to give a speech on October

76:00

17? It's irrelevant whether I'm free to

76:02

give a speech on October 17. The

76:05

relevant question is do I have any

76:07

punches left? That's the first question.

76:09

Or how many punches are left? And we

76:11

limit them. We limit them tightly. And

76:13

so that became another way of like it's

76:15

punches. It's punches and they go away.

76:17

And one thing I've learned I've come to

76:19

see now at age 68, life is the ultimate

76:21

punch card. I mean, think about it,

76:23

right? So you're 48. If any given

76:26

goodsized project is call it a five-year

76:28

project, you got a bunch of fiveyear

76:31

punches left. I'm 68.

76:34

I probably have really good health, but

76:37

I know the number of punches that I have

76:39

left is a lower number than yours. And

76:44

and so life is the ultimate punch card,

76:46

right? And if you end up spending 5

76:48

years or 10 years,

76:51

you know, pulled away from what you're

76:54

really encoded for in some way because

76:57

of whatever sets of reasons, you can't

76:59

get that punch back. And so I began a

77:02

punch card process and that's how I how

77:04

I managed that. But then the other goes

77:06

back to what we were talking about

77:07

earlier.

77:08

>> Could I pause for one second? Please

77:10

don't lose your train of thought. But

77:11

for the punch cards, are those on a

77:14

category bycategory basis? In other

77:17

words, or for example,

77:19

>> speaking engagements, I'll only do five

77:21

speaking engagements per year. They need

77:23

to be within X number of hours of my

77:28

home. Is it on a category bycategory

77:31

basis?

77:32

>> The way we've done it, it's taken us a

77:34

few years iterating on the exact

77:36

process, but every week we calculate the

77:38

punch card. And the way it works is we

77:40

have a point system. And the way the

77:43

point system works is,

77:46

you know, if I'm going to do an

77:48

engagement that involves an airplane,

77:52

it costs more points. If I'm going to do

77:55

a virtual presentation from here, it

77:59

costs fewer points. If I'm going to do

78:01

an intense, we have these lab sessions

78:04

where people bring their executive team

78:06

to Boulder for 2 days and be essentially

78:08

grilled by me for two days. If it's

78:10

going to be one of those, that actually,

78:12

even though it's in Boulder, it actually

78:14

takes a fair number of points because

78:15

the intensity of it is so high. And so

78:19

what we've done is we've kind of

78:20

basically kind of use a numerical sense

78:24

and then in any given period of time

78:26

there's only so many points. So if I end

78:29

up agreeing to do a commitment in

78:31

London, I'm just going to blow like the

78:33

equivalent of three punches.

78:34

>> It's like a reverse frequent flyer

78:36

program.

78:37

>> Oh yeah. Exactly. Exactly.

78:38

>> You just get points subtracted.

78:40

>> Exactly. And so that's how we do it. And

78:42

then we always have a running kind of

78:44

what the total of the punch card is. And

78:45

there's, you know, it doesn't have to

78:47

hit the exact number at a given time,

78:49

but you can't start going over. It's

78:51

okay if you get to the end of the year

78:53

and you haven't spent all your punches.

78:54

What's bad is if you get to the end of

78:56

the year and you did twice as many as

78:57

you should have. And so our

78:59

conversations are always everything is

79:01

in the context of where's the punch

79:03

card? Like there's only one and a half

79:05

points left on the punch card.

79:06

>> So when you and your team are turning

79:08

something down because you're lower on

79:10

points.

79:11

>> Well, we turn things down sort of all

79:12

the time. Do they say we're very sorry

79:14

but Jim is out of points or do they say

79:16

sorry Jim has reached his maximum a

79:18

lotment of commitments? Actually it's a

79:20

real question. What is the language that

79:22

you use for those polite declines?

79:24

>> So first of all I have absolutely people

79:28

totally in frame doing things that

79:30

they're incredibly encoded for. And one

79:33

of the people on my team is a person who

79:36

is incredibly encoded to build

79:39

relationships and make friends and to

79:43

learn a lot and then to help me think.

79:45

And this person who's been with me now

79:48

for quite a number of years. What she

79:51

does that's so marvelous is that

79:53

everything begins with making a friend

79:55

and building a relationship in

79:57

everything we do. And as part of that,

79:59

we're always thinking ahead to the fact

80:01

that we're likely to say no. And all

80:04

just statistically, we're almost

80:05

certainly likely going to say no to

80:07

almost everything that comes through.

80:09

And so by establishing a relationship

80:12

and friendship and setting expectations

80:15

right out of the gate, the odds that Jim

80:18

will be able to do this are very, very

80:21

low. You should know that at the very

80:22

beginning of this conversation. So,

80:24

we're thinking ahead to preserving the

80:26

sense of relationship when we say no

80:29

from the very beginning of how the

80:31

conversation begins. And then this

80:33

person helps the person on the other end

80:36

understand Jim has a punch card

80:39

and so that he can focus on his research

80:42

and his writing. It's a limited punch

80:43

card and I have to set expectations that

80:47

there just aren't very many spots on it.

80:50

And then once we've sort of established

80:51

all that then there's a conversation

80:53

about what what the event is, what the

80:56

invitation is, etc. And then we have our

80:59

conversations and then the communication

81:01

will come back as in most cases a no, a

81:05

few cases a yes where we will say, you

81:09

know, we're unable for Jim to be able to

81:11

join you. Punch card constraints. And

81:13

that's just very real. But they've been

81:15

prepared for that right from the get-go.

81:17

Because we want people to walk away

81:19

feeling better, no matter what answer

81:20

they get, we want them to walk away

81:22

feeling better about us than before they

81:25

ever reached out to us, even though

81:28

they're likely to get a disappointing

81:29

answer. And then in some cases I will

81:32

follow up. Not all cases because I

81:35

couldn't do it for all but for some I

81:37

will personally record a voice memo for

81:40

the the person expressing my

81:42

appreciation for for what they're doing

81:45

and for the invitation and sort of try

81:47

to close the whole thing out with a

81:49

sense of I want them to walk away and

81:51

say that is the most wonderful

81:53

disappointing answer I've ever received.

81:55

>> I love that. Fantastic. Very very

81:58

helpful. By the way, the 850 page

82:01

monster that I was describing

82:03

>> shouldn't malign it by calling it a

82:05

monster.

82:05

>> Oh, no. All books are monsters.

82:07

>> Yeah. Okay, there we go. Right. My

82:09

little pet monster. Maybe it's more like

82:11

a monster from Monsters Inc. as opposed

82:13

to like a a Kraken. But it's entirely

82:17

about how to say no. And that's a simple

82:20

way of putting it. But turns out just

82:22

like I think what you realized with what

82:24

to make of a life. I can't remember if

82:26

it was Emerson who said this. Of course,

82:28

I want to call it Emerson or throw, but

82:30

you know, whenever you try to isolate

82:31

one thing, you find that it's hitched to

82:33

everything else in the universe.

82:34

>> Turns out that saying no is related to

82:36

saying yes, which is related to

82:37

decisions, which then you're like, [ __ ]

82:39

now I have to talk about everything in

82:41

life.

82:41

>> So,

82:42

>> pardon my French, but thank you for that

82:44

answer. I would love to come back to a

82:46

few things you said, which can one quick

82:48

thing out, which was you asked about

82:50

this notion of dealing with the staying

82:53

on track, right?

82:54

>> And and not getting sex. I'll just very

82:57

briefly, we talked earlier about right

82:59

people in the key seats. Are they

83:00

encoded for it? When they're in frame,

83:02

you're grateful for what they are. I

83:04

used to a lot of getting knocked out of

83:07

frame was trying to manage

83:10

my small system and I did a pretty bad

83:12

job of it. Took a lot of my energy. What

83:15

changed is once I got really good at

83:18

people in seats for which they're

83:20

encoded, my time and energy that goes to

83:23

that has shrunk to almost nothing. in

83:26

terms of that extraneous angst and

83:30

replaced with just the joy of working

83:32

with my people. So I think that's the

83:33

second answer is go all the way back to

83:35

first two from good to great. It's

83:36

always still first two and especially

83:39

with people in key seats for which

83:40

they're encoded. So enough on that.

83:43

>> So let's let's double click on that

83:44

actually before I hop to where I was

83:45

going. I'm imagining and maybe this is

83:47

not the right way to think of it but if

83:49

you have a small team like I have a very

83:51

small team three or four people in terms

83:53

of full-time

83:55

I suspect you have at least if we're

83:57

looking at broader corporate America

83:59

let's say you have a small team

84:01

>> yes absolutely

84:02

>> and you can run some trial and error

84:04

>> y

84:04

>> once you get up to 100 people a thousand

84:06

people 10,000 people maybe the trial and

84:08

error becomes a little harder to

84:10

systematize but even on a small scale

84:14

one could make the argument that you

84:17

have fewer players on the chess board,

84:20

so you also don't want to chew up too

84:22

much of their cycles with endless trial

84:23

and error,

84:24

>> right?

84:25

>> Are there ways that you have thought

84:27

about

84:28

making that process as fruitful as

84:31

possible? You're like, "Hey, there are

84:32

five types of tasks. I'm going to have

84:33

everybody do trial and error with five

84:36

types of tasks, and that'll help us hone

84:38

in quickly."

84:40

I'll stop there.

84:41

>> First of all, I just want to comment

84:42

something about scale. two aspects of

84:45

scale. The first is this.

84:48

Never confuse

84:50

scale of impact with scale of

84:53

enterprise.

84:53

>> Yeah.

84:54

>> You and I are like a special operations

84:57

team,

84:59

right? A small special operations team

85:01

can have an immense impact with six

85:04

people in the unit.

85:06

And I think people confuse scale and

85:08

impact all the time. And so, first of

85:10

all, I don't think you have to be big to

85:12

have big impact, right? So you and I

85:14

have chosen that that model. The second

85:16

is I think one of the best reasons to

85:18

grow a company

85:20

is you have a lot of seats and it's an

85:24

everexpanding range of types of seats

85:27

which means that there are more

85:29

opportunities for being able to shift

85:32

people across seats into seats for which

85:34

they're really encoded because there's a

85:37

wider range and a larger number of seats

85:40

in which you could do that. And and then

85:43

I think what really good unit level

85:45

leadership is is that an individual unit

85:48

leader is really good at kind of

85:51

shifting people around on their unit

85:53

across the seats by a process of kind of

85:56

sensing when they're in frame or out of

85:58

frame. My own process is I guess there's

86:00

a little bit of systematic, but it's

86:01

very I'm not going to package any of

86:04

this because I don't know how to package

86:05

any of it and it's not my it's not my

86:07

encoding to package and put out programs

86:10

or anything. For me, it's been just I

86:13

observe. So, I I have a member on my

86:16

team that is absolutely

86:19

marvelous at keeping a cool head in the

86:23

face of unexpected crisis. It's not me

86:27

because I I have a little bit of the

86:29

four anagram in me and I can go pretty

86:31

overly dramatic. It's not helpful. But

86:34

this person has really really really

86:36

encoded for this calm for the unexpected

86:39

crisis. We had an unexpected thing

86:41

happen yesterday that was like whoa. But

86:44

how did I discover that? It was just it

86:46

was observation. And what really became

86:47

clear to me was in the middle of CO when

86:50

everything is kind of chaos and you know

86:53

there's just this sense of just

86:54

everything spinning out of control and

86:56

what I observed was this person was was

86:59

like the calm balance through everything

87:01

right just I could just see the behavior

87:03

and it was more just kind of recognizing

87:05

it and then once I recognize it and I

87:09

just see little snippets it could be

87:10

just something I just notice

87:13

then I kick the frame to the side. I

87:15

just kind of kick it a little bit so

87:17

that what they're doing captures more of

87:20

that and it's it's a very iterative

87:23

process. So I don't have any magic dust

87:26

on this. That's just kind of what I do.

87:28

>> So in that example, this is a great

87:30

example for a follow-up question, which

87:32

is if someone is good, you don't want to

87:34

manufacture crises to

87:36

>> Yeah. Let's see how we all do of the of

87:39

the crisis manager. So, how do you

87:42

harness that? If it seems like

87:45

intrinsically it's contending with

87:48

destabilizing unexpected events, how do

87:51

you use that in coding? So, it was

87:54

really interesting, you know, so

87:55

yesterday it was just my it was really

87:59

simple. It's like, boy, I'm really glad

88:01

you're encoded for this. It was that

88:03

simple. Like, let me know how it goes.

88:06

And uh so remember I talked earlier

88:08

about I think if if you talk to people

88:10

on my team they would they would

88:12

reinforce this. We talked earlier about

88:15

for yourself it's not just recognizing

88:17

your coding it's probably I put sort of

88:19

70 points on trusting them. What I've

88:21

learned with my small team is it's also

88:24

true with like I think this really fits

88:27

with that person's encodings. I'm going

88:29

to trust them.

88:31

And I think that's the real key is I

88:33

sort of trust and get out of the way

88:35

because it's like they're so well

88:37

encoded for this that I don't need to

88:41

worry.

88:42

I just need to let them do what's

88:45

actually going to be really quite

88:46

natural for them. And I think that's not

88:49

a particularly maybe satisfying answer,

88:51

but I think the essence of it is I don't

88:53

tend to just like you don't want to

88:54

second guessess your own encodings, I

88:57

don't second guess their encodings. I

88:59

just trust that letting them go with

89:03

their encodings is going to produce a

89:05

great result and I just breathe calmly

89:08

and stay out of the way.

89:09

>> So with that person again not to belabor

89:12

the point but I I guess I specialize in

89:13

belaboring the point to my earlier point

89:15

of dumb questions.

89:17

>> Yeah.

89:18

>> In this particular employees case team

89:20

member's case

89:21

>> team member. Yeah.

89:22

>> If we look at say Google right they have

89:25

a lot of seats on the bus. if they have

89:27

some people are underutilized but who

89:29

are critical when they are needed like

89:32

firefighters let's just say sure they're

89:33

playing cards

89:34

>> all day long until you need them or when

89:36

you need them you really want them

89:38

>> does that team member fit that

89:40

description in other words they're

89:41

underutilized most of the time or how

89:44

how do you think about that

89:46

>> no I think my people would tell you that

89:48

I've got them overutilized almost all

89:50

the time so back to the exhausting thing

89:54

this is I think actually leads to

89:55

something really important for us I

89:57

think to talk about. People are not

89:59

encoded for just one thing. And so for

90:03

example with with this person this

90:06

person is also incredibly well encoded

90:07

to coach people is really phenomenal

90:11

just instinctive coach and the coaching

90:13

responsibility is something that's there

90:15

all the time. We have young people who

90:17

come in who are on my research team

90:19

young people who are here with us for a

90:21

couple of years before they head off to

90:23

do what they're going to do in the

90:24

world. other people on our team who are

90:27

handling you know range of different

90:29

types of things and they're in seats for

90:31

which they're encoded but then with that

90:33

extra bit of coaching they just kind of

90:35

have a big inflection and this

90:36

particular person is really really good

90:38

at coaching so the crises come kind of

90:40

unexpectedly they just kind of happen

90:43

but the the notion of coaching other

90:45

people is there all the time and and so

90:48

pretty probably pretty fully utilized on

90:50

that I mean sure I mean if you're in a

90:52

special operations unit you're not out

90:54

on patrol every minute, right? But

90:56

there's a whole lot of other activities

90:57

that are taking place and you can be

91:01

activating different encodings in those

91:03

kinds of activities. But I want to I

91:05

want to come to this. This is I think

91:07

and I speak to the world of like

91:08

founders on this especially.

91:11

But look, here's one of the things that

91:14

let me just pause for a moment. I said

91:15

there a moment ago. I'll let you kind of

91:17

pick how you'd like to go with it. It is

91:19

one of the most uplifting aspects of

91:21

this study

91:23

that you're not encoded for just one

91:25

thing.

91:27

And this idea that you have to find what

91:29

you're made for or even Abe Maslo's

91:32

original definition of

91:33

self-actualization which was discovering

91:36

what you were made to do and then

91:38

committing to pursue it with excellence

91:40

which I think is actually quite good

91:41

definition of self.

91:43

>> Say that one more time please.

91:44

>> Yeah. I think he defined it as

91:45

discovering what you were made to do and

91:47

then commit to pursue it with

91:49

excellence. And I think at some level

91:51

that's what all of our people did at

91:53

different phases of their life when they

91:54

were in frame. But there's a little

91:57

asterisk to it that this study has

91:59

really changed my view which is that

92:01

this idea of like as if there's this one

92:04

thing that you've got to discover that

92:05

you're made to do.

92:07

And what this study has done is blown

92:10

that apart for me completely in the idea

92:12

that the range of things that you're

92:15

encoded to potentially do is incredibly

92:19

vast. And all you have to do is find one

92:22

of them.

92:24

And the way you find that can be really

92:27

random. It doesn't matter how it

92:30

happens. It just matters that it

92:33

happens. And it doesn't matter whether

92:34

it's this portion of the encodings or

92:36

that portion of the encodings or that

92:38

portion of the encodings. Whether it's

92:40

playing NFL football like Allen Paige is

92:42

the first defensive player ever to be

92:44

league MVP and then becoming a Supreme

92:47

Court justice in the state of Minnesota.

92:49

There's almost no overlap in codings in

92:51

that at all. But he's encoded for both.

92:54

And we see that notion of it's not just

92:57

one thing. You may find one and stay

92:59

with it for your whole life. Some of the

93:01

people in our study once they found it,

93:03

they never left it. And there are other

93:06

people who because of a cliff ending it

93:09

or because of some other driving

93:11

interests, they were in one frame and

93:15

then they were way over here in another

93:18

frame and the encodings that they were

93:21

drawing upon could have been radically

93:24

different. You look at Benjamin

93:25

Franklin, right? built one of the first

93:28

media empires in history, then becomes a

93:32

scientist, then becomes our greatest

93:33

diplomat and helps found a nation.

93:36

Three really different frames. And

93:40

I'll get very excited here because I

93:42

think that there is an really really

93:45

important set of questions here for

93:47

company builders and company founders

93:49

because personally I think how you think

93:52

about

93:54

the intersection of your life to the

93:57

cycles of building a company

94:00

can be radically affected by how you

94:03

think about this question of in frame or

94:05

out of frame. So, I'm just going to

94:06

pause there and you can be curious, Tim,

94:09

however you'd like to go.

94:11

>> Well, I'm curious in maybe too many

94:14

ways. That can be problematic. And

94:16

actually, that relates to I do want to

94:18

come back

94:20

to what you just said since that's

94:22

that's a nice cliffhanger, pun intended.

94:25

>> Yeah.

94:26

>> What I do want to ask you, because this

94:28

is after all in some ways a

94:31

self-indulgent therapy session for

94:32

myself,

94:34

>> let's take a sidebar. I want to talk

94:35

about return on luck because it's been

94:37

so present on my mind. It came up in

94:40

passing in one of our earlier

94:41

conversations, but we never really did a

94:43

deep dive and then it comes up again

94:45

more substantially in what to make of a

94:49

life. A

94:49

>> whole chapter on it.

94:50

>> Yeah. I want to talk about it because it

94:52

strikes me and I want you to poke holes

94:55

in this if need be. It strikes me that

94:58

one of my encodings might actually be

95:01

maximizing return on luck because I do

95:04

so many different things and very often

95:08

if and we have to be careful about

95:10

hindsight 2020 and survivorship bias and

95:13

blah blah blah but when I look at a lot

95:16

of the home runs whether that's from

95:19

personal reward external accolades or

95:22

both a lot of the time it is

95:26

connecting these disperate worlds. And

95:30

the way that comes about frequently

95:33

is I'll have these dozens and dozens of

95:37

conversations which I do every week and

95:40

they could be with scientists, they

95:41

could be with startup founders, you name

95:44

it. And most things are a no in one form

95:48

or another. But I suppose the picture I

95:51

might paint is I feel like sometimes by

95:53

the virtue of how I live my life, I'm

95:56

standing on one side of a tennis net and

95:59

there are 600 tennis ball shooting

96:02

machines on the other side.

96:04

>> Y

96:04

>> and I seem to be very good at picking

96:07

out when there's 600 balls in the air

96:09

which one I should actually take a swing

96:11

at. And I may be giving myself too much

96:15

credit, but I think my closest friends

96:16

would say that also some version of

96:18

that.

96:19

>> If we step back, could you just describe

96:22

the different types of luck that you've

96:25

identified and what return on luck is?

96:28

>> Yeah.

96:28

>> And I might add something else that I

96:31

picked up from someone in Silicon Valley

96:32

that I think is also pretty helpful. But

96:34

let's start there because I do think

96:36

it's a mistake for folks to think I

96:39

either have this thing called big luck

96:41

or I don't and that's the end of the

96:43

story because you mentioned clues all

96:46

the time and I think this relates.

96:49

>> This has always been a real interesting

96:51

question for me because I think I've

96:54

always been kind of attuned to the role

96:57

of luck in life, good luck and bad luck.

97:01

And I was always really interested and

97:03

curious about well you know in the end

97:05

what role does luck play? Now real brief

97:10

background the first time that I began

97:13

to see this distinction between luck and

97:15

return on luck will goes all the way

97:17

back to when Morton Hansen and I were

97:20

doing our book Great by Choice. We're

97:22

looking at really chaotic environments

97:23

and some of the most successful startups

97:26

to great companies that came out of

97:28

really turbulent worlds. And because of

97:30

the environment we're looking at, it

97:31

allowed us to be able to say, well, wait

97:32

a minute. These are environments where

97:34

luck events can happen, right? I mean,

97:36

you can think about,

97:38

you know, two companies both having IBM

97:41

walk in the door looking for an

97:42

operating system and they both get the

97:44

same luck event, right? But one got a

97:46

return on that luck event.

97:48

>> And so what we did was we said, well, we

97:51

need to systematically understand this.

97:52

And and Morton really gets a lot of

97:54

credit for for this because we we

97:56

figured out how to do it. You have to

97:58

first of all define what luck is. If

98:00

you're going to study luck, you have to

98:01

understand what it is and realize that

98:03

luck is not an aura or something. It's

98:05

an event. It's a luck event. And and if

98:07

we could put the parameters of what is a

98:09

luck event and what with Morton's

98:13

collaborating together, we defined a

98:14

luck event and I think this is a really

98:16

good definition is a you didn't cause

98:18

it. So if somebody says you make your

98:20

own luck, it's not luck by definition,

98:24

right? Because there's bad luck too. If

98:25

I get a cancer diagnosis, am I going to

98:28

say I make my own luck? No, you didn't

98:30

cause it. The second is it has a

98:31

potentially significant consequence,

98:33

good or bad. And the third is in some

98:36

way it came as a surprise. You you

98:39

didn't know that it would happen or when

98:42

it would happen or what form it would

98:44

take, right? But there it is. And any

98:47

event that meets those three tests

98:51

is a luck event. And once you have that

98:53

lens,

98:55

you didn't cause a potential significant

98:56

consequence, some element, some

98:58

significant way as a surprise. You begin

99:00

to see their luck events happening all

99:01

the time.

99:03

And and and so then what Morton and I

99:07

did was we looked at these companies and

99:08

we said, well, now let's actually run

99:11

the numbers and see because we always

99:13

had comparatives in that study. And we

99:16

were able to demonstrate that the big

99:18

winners, the ones who had the huge

99:19

outsized returns relative to their

99:21

direct comparisons, did not get more

99:24

good luck. They did not get less bad

99:26

luck. They did not get bigger spikes of

99:28

luck. And they didn't get better timing

99:29

of luck. So luck as a distributed

99:33

variable was pretty even between those

99:35

that were the huge 10x winners and their

99:38

direct comparisons. So clearly luck

99:40

didn't separate. And then that led to

99:43

the observation that but it was the

99:46

return on luck that when the luck came

99:49

they had this amazing ability relative

99:51

to the comparison to make more of the

99:54

luck and that led to the return on luck

99:56

as the critical variable. So now we come

99:59

to this study and I I was looking

100:01

through you know just looking at the

100:03

amount of luck that's in these people's

100:04

lives and it's you know there's a whole

100:06

chapter on it. There's lots of

100:07

permutations of luck, including the

100:09

roulette wheel, which which set of

100:11

encodings you get thrown into at some,

100:14

you know, stage of life that just puts

100:17

you there that you didn't expect to be

100:18

there. We were talking about Grace

100:20

Hopper earlier. How'd she end up in

100:22

computer scientists? Well, World War II

100:24

happened. She got pulled out of being a

100:25

professor at Vasser. She was assigned to

100:27

this project at Harvard she didn't even

100:28

know existed. And it was the first

100:30

computer, the Mark 1. And that cast the

100:32

dive for the rest of her life. without

100:34

World War II or without that assignment

100:36

without right it would have been some

100:37

other set of encodings that that went

100:39

off but then I started looking at what

100:42

are the types of luck and I through this

100:45

study came to see I think there are

100:46

three there's what luck which is a good

100:49

event that goes your way or a bad event

100:50

you know a cancer event would be a bad

100:52

luck what luck there's who luck and I

100:55

think this is the often underappreciated

100:58

gigantic kind of luck in life my life is

101:01

a continuous theories of hool luck

101:04

events starting with Joanne but others

101:06

as well and bad luck the bad luck of my

101:09

father and then there's zit luck and zit

101:12

luck which I didn't really see until

101:14

this study is when what you're doing

101:18

just you know happens to fit with a

101:22

particular zeitgeist that's happening at

101:24

the time you did not cause but it is a

101:27

huge reality so I mean Benjamin Franklin

101:30

you and I would never talk about

101:31

Benjamin Franklin if he had born at a

101:33

time that he wasn't there for the

101:34

revolution and the founding of the

101:36

country. And Alice Paul, if she'd been

101:39

born 20 years later or 20 years earlier,

101:42

she wouldn't have been there to bring

101:44

the 19th amendment and suffrage to a

101:46

successful close. She would have done

101:48

something else, right? But not that. And

101:50

so Jimmy Paige and had not been born in

101:53

England coming of age in the blues rock

101:55

revolution right there as all this great

101:58

music was happening. Right. I'll just

102:00

say briefly, people need to read it, but

102:01

the the entire founding story of Led

102:03

Zeppelin is kind of the same when you

102:05

look at the number of things that had to

102:07

go right. Yeah. It's just wild. Yeah.

102:09

>> And there's that great quote from Robert

102:10

Plant saying, "What was that? The gods

102:12

roared and you know, lightning crackled

102:15

and Blake wrote a poem from under the

102:18

ground and all England was reunited."

102:20

You know, it's just this great moment in

102:22

that basement that where they had that

102:24

first song when they played Train Kept

102:26

Rolling and the four of them came

102:27

together. Anyway, zeit luck is a big one

102:30

too. And then what we found in this

102:32

study is and I think it really is a it's

102:35

a very true finding.

102:37

They were really good at getting a

102:38

return on luck when luck came because

102:41

they these things we called Natalie

102:43

moments. Not all time in life is equal.

102:46

And you recognize this is a not all time

102:48

in life is equal moment. And it requires

102:52

an unequal response to an unequal

102:55

moment. And so now I come back to you,

102:58

Tim. If you're good at this return on

103:00

luck thing, okay.

103:01

>> Yeah.

103:02

>> So the 600 tennis balls are coming at

103:04

you. One of them is the one that you

103:06

decide to to hit. What about your

103:08

ability to kind of recognize it's a not

103:12

all time in life is equal moment

103:14

>> and to go to kind of a 10x intensity

103:19

in that moment. I'm curious how that

103:21

plays out for you. I think there's a lot

103:23

of overlap and and certainly I I think

103:26

my maximizing return on luck has an ROI

103:31

distribution very similar to angel

103:33

investing. I so 80% of the times I hit

103:38

the ball it's like Marco and there's no

103:40

polo. Nobody hits it back. Right.

103:43

>> But but every once in a while I'm like

103:46

holy cow I just scored the winning point

103:47

in Wibbleton. That's crazy. Didn't see

103:49

that coming. Yeah. So I'll come back and

103:51

answer that. I think they're very

103:53

closely related and I identify with the

103:56

what who and zeit luck. For instance,

103:59

when I started angel investing 2008

104:01

roughly 2008, 2009, 2010, I mean it was

104:05

>> just a beautiful time to angel invest.

104:08

Yes, there's some skill involved. I tend

104:10

to disbelieve people who attribute

104:13

anything solely to luck or solely to

104:15

skill. It's usually some combination.

104:18

But there are definitely periods of time

104:20

where I felt that not all time in life

104:23

is equal and this is where you need to

104:27

apply some pressure

104:29

to the vessel. Yeah. Right. And that

104:32

could be the first book which you know

104:35

we don't need to get into right now. It

104:37

could be early on the angel investing.

104:39

>> Mhm. It could be for instance around

104:43

2015 deciding to like 10x 20x 30x down

104:48

my bet on supporting science related to

104:52

psychedelic assisted therapies and

104:55

even back then starting also but now

104:59

typically non-invasive but sometimes

105:01

invasive bioelectric medicine brain

105:04

stimulation I think that's I have very

105:06

high conviction that that is around the

105:09

corner So taking a peek at the future

105:11

that's not evenly distributed. I feel

105:13

>> that way about biologic medicine right

105:15

now. So I think they're very tightly

105:19

bound in a sense. And question for you.

105:23

There's this term that I came across. I

105:24

I wish I had the attribution but believe

105:27

it was from someone in Silicon Valley or

105:29

at least someone in tech. They talked

105:31

about increasing the surface area of

105:33

luck. In other words,

105:36

if you need luck, if we're talking about

105:38

good luck to stick to you,

105:40

>> how do you increase the surface area

105:43

available to which that luck can stick?

105:45

And when I think about my own hoolock,

105:48

for instance,

105:50

>> it was entirely dependent in the world

105:52

of startups and even one could argue the

105:55

success of the first book on me moving

105:57

to Silicon Valley, being in the middle

106:00

of that switchbox. Without that, forget

106:02

it. there was not enough surface area to

106:05

which hool luck could really stick.

106:07

>> Yeah.

106:07

>> And I'm just wondering if that

106:09

resonates. So first of all I think

106:12

whatever the size of the surface the

106:15

idea of luck and return on luck

106:18

is always operating if you will right

106:20

because I mean you could be you know my

106:23

family in rural northern Oklahoma my on

106:26

my father's side isn't Silicon Valley

106:29

but my grandmother who grew up there you

106:32

know she had luck and return on luck

106:34

that her life was affected by I mean she

106:37

was this beautiful Oklahoma farm girl

106:39

and she was working at the Witchah

106:42

airport and this dashing test pilot who

106:44

was my grandfather Jimmy Collins landed

106:47

for fuel on a Memorial Day weekend and

106:50

they met and 4 days later they were

106:52

married and it was like okay this is a

106:55

hoolock moment but we're both going to

106:57

seize that not all time in life is equal

106:59

and boom right you know so that notion

107:02

of the luck and return on luck can

107:04

happen sort of anywhere so one I don't

107:07

think it's contingent that it has to be

107:08

the largest sphere That said, I

107:10

absolutely agree with you that one of

107:12

the reasons to be in certain

107:14

environments if you're fortunate enough

107:16

to be there is there's just a lot more

107:18

tennis balls coming at you and there's a

107:20

lot more around the hoolock side of it.

107:21

In my life, I've often said, you know,

107:24

there are lots of ways to be wealthy,

107:27

but the way in which I have been

107:28

incredibly wealthy.

107:30

I've done well on many dimensions, but

107:33

probably the way in which I have the

107:34

greatest wealth is in a vast vast set of

107:38

hoolock events. And that happened, it

107:40

started because I started being in

107:42

environments where I would come in

107:45

contact with with people who ended up

107:47

being hoolock. John Gardner down the

107:49

hall from me at Stanford. But I mean

107:54

just a couple to really illustrate like

107:56

that really affected my own life because

107:57

I was in a place where the surface area

107:59

was fairly large. When I went off to

108:02

Stanford business school second year and

108:05

the the course sorting machine I wanted

108:08

to get into an entrepreneurship small

108:10

business course. it filled up and so the

108:11

course sorting machine just randomly put

108:13

me into a section with a totally

108:16

unproven guy named Bill Lazir who we

108:18

spoke about in one of our previous

108:20

conversations. It was truly just the

108:22

random course sorting. So it is

108:24

absolutely it's like a coin flip. And

108:27

then Bill ended up, it was the first

108:29

time he taught, no one knew who he was,

108:31

was the first person that was ever like

108:35

a father for me. And Bill, despite all

108:38

of my, you know, challenges to be

108:41

somebody to deal with or whatever and

108:42

those hot coals and he had to manage

108:44

those. But the return on luck was I

108:47

recognized Bill's caring and I I

108:50

invested in our friendship and our

108:52

relationship all the way along as well.

108:55

And then that led to another luck event,

108:59

a what luck followed by a hoolock. So I

109:02

was 28 29 years old I think 29 maybe 30

109:06

right around that age. So how did I end

109:08

up teaching at Stanford business school?

109:10

Well, shortly before the start of the

109:12

fall term in 1988,

109:14

Bill was teaching entrepreneurship and

109:16

small business. I was kind of still in

109:19

the fog of my 20s and I'd been managing

109:21

Jo-Ann's athletic career and

109:25

one of the sections of entrepreneurship

109:27

and small business because of a family

109:30

tragedy

109:32

all of a sudden lost the professor who

109:34

was going to be teaching it.

109:37

I mean, it was a really bad luck event

109:40

for that person, but all of a sudden, it

109:42

hit me with a luck event in the sense it

109:44

was the luck event was all of a sudden

109:46

that class had nobody to teach it. And

109:49

Bill taught the other section of it and

109:52

Bill went to the deans and said, "How

109:54

about we let Jim teach it?" I wasn't

109:56

teaching there at the time and and they

109:58

were very skeptical of this, but Bill

110:00

said, "I'll, you know, I'll take

110:02

responsibility and so forth." And that's

110:04

what opened up the door for me to teach

110:06

at Stanford. It was a like had that

110:08

tragedy not happened, I wouldn't have

110:09

had that opportunity. And if I had not

110:12

had Bill from the previous luck event, I

110:14

would not have had that opportunity. And

110:16

then and then Bill was said, "Okay, you

110:19

know, this is like you unexpectedly got

110:22

to pitch in Yankee Stadium and you only

110:25

get to pitch once if you don't throw a

110:27

good game, but if you throw a no hitter,

110:30

you might get to pitch again."

110:32

And so that's the Natalie time, right?

110:35

Not all time in life is equal. Is that

110:37

moment I get this, you know, it's look,

110:40

if you had one shot, one opportunity to

110:42

seize everything you wanted in one

110:44

moment, would you capture it or let it

110:45

slip? I mean, it's one of the great

110:46

songs of all time because it gets right

110:48

to this thing, right? That's the Natalie

110:50

moment. And then the next luck event,

110:52

which was a who luck thing, happened,

110:54

which is I'd written a little article

110:56

for the San Jose Mercury News. a fellow

110:58

by the name of Jerry Porus just happened

110:59

to read it who happened to be on the

111:01

faculty with me who sent me an email

111:03

saying I noticed you're interested in

111:05

this stuff on corporate vision can we

111:08

talk so I go have a conversation with

111:10

Jerry Porus we he'd been a professor of

111:13

mine before but he didn't even probably

111:15

remember that and then we ended up that

111:17

became where we started the project that

111:19

eventually led to built to last right so

111:22

another hoolock and then those years of

111:24

like teaching and you know basically

111:27

having no time for anything except the

111:28

research and the teaching and the whole

111:30

bit. And then that leads to built to

111:32

last, which then leads to another luck

111:34

event, which is this thing that that no

111:38

one knew who we were and totally

111:40

unexpected. The day that built to last

111:43

was published.

111:45

I wake up in a small in a a hotel room

111:48

in a small hotel down in Halfoon Bay,

111:50

California.

111:52

And I think pub date was October 17 or

111:54

something like that. Anyways, and I was

111:56

down there to do a little thing for the

111:57

Stanford Alumni Association, kind of a

112:00

talk or something. And I get up and I

112:01

open the door to pick up my morning USA

112:03

Today. And I pick it up and the top of

112:05

the USA Today says built to last author

112:08

something. See money section. I'm like,

112:11

well, that's kind of weird. Okay. So

112:12

then I flipped to the money section and

112:15

there's a picture this big of Jerry and

112:17

me and we own the entire front page of

112:22

the money section and with a picture of

112:24

the book and the two of us and it goes

112:26

on for like three pages. We had zero

112:29

idea any of this was going to happen and

112:31

it simply there's a series of things

112:32

that led to that happening which related

112:34

to hoolock. I thought it was a joke. So

112:37

I called Joanne and I said you know god

112:39

my friends are taking pity on me.

112:41

They're playing a joke. They made this

112:42

mockup copy of USA Today and they left

112:45

it on my doorstep and well actually I

112:49

didn't call her at first cuz I went

112:50

downstairs and then I saw there were

112:52

other USA Today's there and I went and I

112:55

looked and they all had the same thing.

112:56

I said, "Man, this is a really elaborate

112:59

hoax cuz they changed all the

113:00

newspapers."

113:03

And then I called Joanne and she said,

113:05

"Oh my gosh, now we're in trouble

113:07

because that actually is real and we're

113:09

50,000 copies backordered overnight."

113:12

>> Oh wow.

113:14

Quality problem.

113:15

>> And then of course there was the year

113:17

after that which was a Natalie year at

113:19

the end of which I put so much into it I

113:21

ended up getting shingles because my

113:22

immune system was so shot. So the each

113:25

of those were there was the luck event

113:28

often a who luck event sometimes a what

113:30

luck event but every one of them what

113:34

followed was

113:36

the return on luck aspect of it of yes I

113:41

get the email from Jerry Porus but then

113:43

there's the five years of doing the

113:45

research and inventing the match pair

113:47

method and you know like what a

113:51

wonderful opportunity to do that and and

113:53

those are my life is just hooluck after

113:56

hoolock after hooluck and then the

113:58

sphere I was in a place where there was

114:00

a lot of this fear I just have to say

114:02

though there's one thing which is

114:03

sometimes you have hoolock though and

114:05

that doesn't necessarily mean that the

114:07

key is you can have opportunities come

114:10

at you and the hard part is when not to

114:14

make a return on luck event out of it

114:17

because it wouldn't fit your encodings

114:20

and so just because something's a once

114:22

in a-lifetime opportunity

114:24

is merely a fact. It's not a reason.

114:28

>> I mean, everything's kind of a once in

114:29

a-lifetime event if you sit down and

114:31

really think about it, right?

114:32

>> Each and every day,

114:34

>> I think about this line, and I'm going

114:36

to paraphrase, although I think I'm very

114:38

close, by the late Lord Rabbi Jonathan

114:42

Saxs, who I had on the podcast a few

114:45

years before he passed.

114:47

And I think he said something along the

114:49

lines of the great challenge in life is

114:52

to separate an opportunity to be seized

114:55

from a temptation to be resisted.

114:57

>> Exactly. Oh, that's that's exactly

114:59

that's really good words.

115:01

>> I think about that a lot. And

115:03

>> to follow up on the the luck question,

115:06

so if we look at return on luck, it

115:09

doesn't specify good or bad. I was

115:10

thinking about this in the process of

115:13

reading and I'm wondering if you look at

115:19

the people you have studied

115:21

>> whether it's for what to make of a life

115:23

or other books or outside of the context

115:25

of books

115:26

>> it seems like yes you can conclude

115:29

distribution of luck for these matched

115:31

pairs seems roughly equivalent but the

115:34

return on luck is not and I'm wondering

115:36

if that applies not only to good luck

115:38

and I'll I'll tell you what went through

115:39

my head I Hm. If you were teaching,

115:41

let's just say you, Jim, teaching a

115:43

class at Stanford called luck or

115:47

>> return on luck.

115:48

>> Return on luck.

115:49

>> Yeah.

115:49

>> Is it possible there's actually a

115:51

progression of skill related to return

115:54

on luck just as there might be with

115:56

different types of investing in that if

115:59

there's big good luck, that's sort of

116:02

the white belt level. Most people can

116:04

recognize that. Some percentage of those

116:06

people can capitalize on it. Then

116:08

there's small good luck which is is a

116:10

little more challenging.

116:12

Then let's skip over neutral. Just say

116:14

there's like small bad luck, little bad

116:16

things that people can sometimes make

116:19

use of along the lines of the apocryphal

116:22

Chinese saying never let a good crisis

116:24

go to waste type of thing. And then

116:26

there's big bad luck. And I'm I'm just

116:29

wondering, we could think of these all

116:31

as forms of chance.

116:33

If you've noticed any patterns among the

116:37

match pairs where we're able to make

116:39

good use of big good luck or small good

116:43

luck, were they also able to reframe bad

116:46

events or make use of quote unquote bad

116:49

events? Just a question. I've struggled

116:51

with this myself because I I feel like

116:54

I've done better at return on good luck

116:57

than return on bad luck myself. I've had

117:00

some return on bad luck too, but I can

117:03

more easily zero in on the return on

117:06

good luck. So, so first of all, I just

117:07

want to clarify one thing that's really

117:09

worth mentioning. In my prior work, good

117:12

great bill to last, great by choice, how

117:14

the mighty fall, so forth, where I was

117:15

doing match pair studies, and Jerry

117:17

Porus really gets the credit for coming

117:18

up with the idea of the historical match

117:20

pair method that's been so central to

117:22

me. And you were always asking, I got

117:24

two companies and then multiple pairs of

117:27

companies and they're in similar

117:29

circumstances and then one does one

117:31

really well and the other doesn't. and

117:32

you're you're looking at the contrast

117:34

and asking what's different and that's

117:36

how you see the ideas. And so that was

117:38

really good for my corporate research.

117:42

This study is different in how I use

117:44

pairs. Joanne came into me one day and

117:46

she just said, "Jim, people are not

117:48

stock returns." And what she meant by

117:50

that is, you know, was if I'm studying

117:52

companies, I have these objective output

117:54

variables, right? Right? I can look at

117:55

cumulative returns relative to investors

117:57

for example and I can really I can

118:00

definitively prove this company over

118:02

time did better than that company. I can

118:05

unassalably demonstrate that. But

118:07

there's no legitimate way for me to

118:08

define what is a better life than

118:10

another life. And so what happened in

118:13

doing this study and this was a big

118:16

change in how I just even look at the

118:17

whole world is that the way it actually

118:19

turned out because there were really

118:21

interesting people all the way around is

118:22

my other studies it was like this right

118:25

you know there was always one that was

118:26

better than the other. In this study I

118:28

had two people and then they would hit a

118:30

similar cliff and they would come out

118:32

and they would maybe go different

118:33

directions but you couldn't necessarily

118:35

say one direction is better than another

118:39

direction. You could say maybe one

118:41

person had more trouble getting in frame

118:43

before they got to the other side or

118:44

whatever. And so this study is very much

118:46

about people going through similar

118:49

cliffs and coming out making different

118:50

choices which is a very different thing

118:52

than saying making better choices. So I

118:56

want to be really careful that that I

118:57

use pairs here. I learned a lot from

118:59

having pairs. Pairs were essential to

119:01

this. But the way I think about them

119:03

when it comes to human beings is

119:04

different than the way I think about

119:05

them when it comes to companies. the bad

119:08

luck part. I want to speak from a

119:09

company standpoint. I want to speak from

119:11

a personal standpoint. Company

119:12

standpoint. What Morton and I found in

119:14

Great by Choice is that the only

119:17

mistakes you can learn from and the only

119:19

bad luck events you can learn from are

119:21

the ones you survive.

119:23

And so it's true, right?

119:27

And so what we found is that there's

119:29

sort of a part of getting a return on

119:32

bad luck for companies. And speaking for

119:34

any founders or people who are building

119:36

companies, what what we really found is

119:38

that the way they manage the bad luck

119:40

side of things is you think of like a

119:41

curve of a rising curve of a company or

119:44

you know company moving through and and

119:46

say it's you know its growth or its

119:48

success or whatever it's like this but

119:49

around this like these events like you

119:51

know COVID financial crisis massive

119:53

technological disruption whatever it

119:54

happens to be like these are sort of

119:56

these things that are happening along

119:57

the way. And meanwhile down here is this

120:00

line that you'd think of as the death

120:02

line. And if you ever hit the death

120:04

line, it's over, right? You never get a

120:07

chance to get a return on what comes

120:08

next because it's done. And so what we

120:11

found is the kind of the secret to

120:12

managing from a company standpoint, the

120:15

the bad luck side of it is you got to

120:17

stay alive. And the part of getting a

120:20

return on luck is if you manage yourself

120:22

with such discipline and with such

120:25

financial reserves and with such buffers

120:27

and such relationships and so forth such

120:29

that when you get a triple hit of bad

120:31

luck,

120:33

you're alive.

120:36

You don't hit the death line. Part of

120:39

the return on luck is you get to the

120:40

other side and others got wiped out, but

120:42

you didn't.

120:45

And that sets you up for a return after

120:47

the fact. And so this notion of kind of

120:51

part of the secret to getting a high

120:54

return on bad luck as a company is to

120:56

have constant productive paranoia so

120:59

that you never hit the death line.

121:01

Because if you're one of the ones who

121:02

never hits the death line, then you get

121:05

a return by almost definition because

121:09

you survived and others didn't. So

121:13

that's the company side of it. And then

121:15

of course you make the most of the

121:16

things you learned and all that sort of

121:17

stuff. From a personal standpoint, I

121:20

think about one of the people in the

121:21

study who you met. We have a pair of

121:23

women whose husbands died with tragic

121:27

luck events.

121:30

One died in a plane crash

121:33

and the other died of a heart attack.

121:37

So these two women got hit with a

121:39

massive blow of bad luck.

121:43

I mean, it's the ultimate, right? You

121:45

didn't cause a plane crash. Huge

121:48

negative consequence. Total surprise out

121:51

of the blue when you get that call that

121:52

afternoon. And you look at Cartis

121:55

Collins who husband, both of these

121:58

women, their husband serves in Congress,

122:00

which meant that they had the

122:01

opportunity to take their husband's

122:03

seats because the way that works with

122:04

this mandate that opens up the

122:06

possibility if your spouse dies, you get

122:08

to take their seat. And Cartis Collins,

122:10

she felt that her husband would have

122:12

wanted her to at least give it a try.

122:16

And she goes off to Washington DC. She

122:18

was totally unprepared for being she had

122:21

never thought of being a congressperson.

122:23

The whole frame of her life had shifted

122:24

and her life had been shattered.

122:28

And while she was there, she began

122:30

making these steps like she just

122:31

started, you know, she would serve on a

122:33

committee. She started right and she

122:35

wasn't even sure she was going to stay.

122:36

And then what happened is she began to

122:38

discover a marvelous set like she had

122:41

these amazing encodings probably I mean

122:44

just really amazing encodings for being

122:46

an incredible legislator. She became

122:48

chair of the congressional black caucus

122:50

at one point. She was there for 25

122:52

years. She really flourished in the role

122:55

of being a congressperson 7th district

122:58

of Chicago. Now I I want to be really

123:01

clear. I wouldn't look at it as that oh

123:03

it turned out that it was a good thing

123:04

she lost her husband. It wasn't. It was

123:06

terrible thing. So you don't look at it

123:07

and kind of denigrate or in any way

123:09

dismiss the pain and the grief of losing

123:11

her husband. That's just awful, tragic,

123:13

terrible luck.

123:15

But what the story illustrates is that

123:18

sometimes these bad luck events, cliff

123:20

events, number of the people in our

123:22

study, these cliff events have a way of

123:24

knocking your life to the side. And when

123:27

that gets knocked to the side, you're

123:30

thrown off to Congress, you know, or you

123:33

have a disease,

123:35

your life has just been just bang.

123:39

And what happens, I think the way I

123:42

think of it through this study is it

123:43

isn't just kind of like I will make good

123:45

from bad. Look, it's just awful to lose

123:47

your husband.

123:50

But in many ways what it showed is this

123:53

sense of that those cliff events which

123:55

are often a form of bad luck in some

123:58

cases or sometimes good cliff events but

123:59

can be bad luck events

124:02

can reframe your life in incredibly

124:05

unexpected ways and expose encodings

124:10

you never knew you had.

124:14

And then the return on that is right

124:17

back to the very earlier part of the

124:19

conversation which is those encodings

124:21

pop into frame. You recognize them. You

124:25

begin to trust them and your life takes

124:28

a different vector.

124:30

And that's how I really kind of came to

124:32

see it on these big ones. You're not

124:34

polyianish about it at all. They can be

124:36

terrible, terrible things. Katherine

124:38

Graham, another one, right? just she had

124:40

no idea she had the encodings to be one

124:42

of the greatest corporate leaders of all

124:44

time. But when the frame shifted and she

124:48

began to discover those leadership

124:50

encodings

124:52

doesn't take away the pain of what she

124:54

lived through.

124:56

But when she

124:59

really committed to and trusted,

125:02

I am the leader of the Washington Post

125:04

company,

125:06

that was the ultimate return for the

125:08

company, for her, for journalism, for

125:11

the whole deal. So that's kind of how I

125:14

how I think about it. And and think

125:16

about it this way. This is going to

125:17

happen. There are going to be founders.

125:18

There's just I know you have founders in

125:20

your world. One of the big luck events

125:22

that happens to a lot of founders

125:25

is

125:26

They lost control of their company.

125:30

Then they lost their company. And

125:32

sometimes it comes as a terrible ripping

125:35

shock almost like a death

125:39

and they're cast into the fog.

125:43

Or the other version of it is they sell

125:46

their company

125:48

and then they lose three decades of

125:50

their life because they don't get back

125:52

in frame.

125:54

There's multiple groups of people that I

125:56

really, really, really hope engage with

125:58

this book, but one of them are my

126:00

friends in the military, veterans coming

126:02

out of places like special operations

126:04

who have to reframe their life, etc. But

126:06

I think the for for people who aren't

126:09

going to build a company till the day

126:10

they die, like Sam Walton

126:13

or Steve Jobs, you're going to face this

126:15

cliff event.

126:17

And I think a lot of them are not well

126:19

prepared for it. And I think they just

126:21

jump right off another cliff. I would

126:24

love to see that not happen. And one of

126:26

the big questions I would put to

126:27

corporate I really believe this is to

126:29

ask yourself the question is

126:32

ultimately in the end are you going to

126:34

be a founder who actually the big thing

126:37

you discovered in your life is building

126:39

your company

126:41

and you will do it until you're out of

126:43

breath.

126:45

or are you going to be somebody who

126:47

that's one frame of your life

126:50

and then there'll be a second very very

126:53

different frame that comes after that.

126:55

What worries me is how many people

126:58

either they lose their company or they

127:00

sell their company and they actually

127:02

don't know how to get back in frame.

127:05

And then a year goes by and five years

127:08

goes by and 10 years goes by and 15

127:13

years goes by and as you know from the

127:16

book your best years are starting to hit

127:17

at about 55 60 65 70 anyway.

127:21

and all of a sudden

127:24

those punches in life have just expired

127:27

without being really used.

127:29

>> I would say very few founders have a

127:31

plan. They have scripts they can copy,

127:37

but it's not reasoning from first

127:40

principles or from seeking encodings.

127:43

It's I guess this is what you do now.

127:45

And that typically

127:47

ends up with a crisis of identity much

127:50

like you described after an athletic

127:53

career, after special ops, after

127:54

anything that has been a lynch pin of

127:58

your identity for such a long time. I'd

128:00

love to ask you a question that may tie

128:01

into a lot of what we've discussed

128:03

already.

128:04

It came about in reviewing our earlier

128:09

conversations

128:11

>> and

128:12

I'd love for you to expand on it. So

128:16

here here's the line. His mentor Irv

128:19

Grouse, hopefully I'm pronouncing that

128:21

correctly, told him

128:22

>> y

128:22

>> an option to come back in quotation

128:24

marks has negative value on a creative

128:27

path because it will change your

128:28

behavior.

128:30

>> Could you expand on this? Because part

128:31

of the reason why I have the

128:36

confidence,

128:38

I'm not sure if that's quite the right

128:40

word, to pursue all these different

128:42

paths and

128:45

chase different laser pointers of

128:47

novelty is that I know I don't have to

128:49

stick with any given boondoggle if it

128:51

turns out to be a boondoggle. So could

128:54

you just expand on this? I want to make

128:55

sure I'm understanding it correctly and

128:57

where it applies, where it might not

128:58

apply. If this Irv grasp

129:01

>> Irv was another one of the you know

129:04

wonderful

129:06

people that hit my my surface if you

129:08

will a great hoolock event the story

129:10

you're referring to essentially was I

129:12

was at the point where I was going to be

129:15

really you know contemplating and

129:16

confronting leaving Stanford to head out

129:19

on my own bed on my own work and and of

129:21

course the key is you know now we know

129:23

the result right it worked and I'm

129:27

really glad that I carved my own path I

129:29

wouldn't have been encoded to be

129:31

successful in a political environment

129:33

anyway. And then most universities are

129:35

political. You could be good at that.

129:36

I'm I wasn't very good at it. I was

129:38

singularly terrible at it. But, you

129:41

know, there was a question in my mind

129:43

about should I try to build some bridges

129:45

and threads back such that if I stepped

129:48

away for 6 months or a year or whatever

129:50

that I could have the option to return,

129:52

right? If this if built to last didn't

129:54

work or whatever, right? Because it was

129:56

all right at about that time. And Irv

129:59

said, 'It's not in your interest to have

130:00

the option to come back.

130:04

And I said, 'Well, I thought options

130:05

always have positive value. He said, 'N

130:06

no, options sometimes can have negative

130:09

value because

130:11

if you know you have the option to come

130:13

back,

130:15

it will change your behavior, the level

130:17

of commitment. If you know there's no

130:19

option to come back, you're going to

130:22

have to do it's ultimately it's a

130:24

Natalie time, right? it's going to be

130:26

ultra Natalie time and it will change

130:30

your behavior if you don't have the

130:32

option to come back. And so that idea of

130:36

I think you can have a lot of things in

130:37

life that are sort of you know small

130:39

test options and things like that. But I

130:42

also what I really took from that is

130:44

that there come these times when you

130:47

just go all in. And this is the key in

130:50

low odds games, games where there's a

130:53

very low odds of success

130:56

statistically.

130:59

If you don't go

131:02

100% allin,

131:05

the odds will be zero. Mhm.

131:08

>> So you're either looking at a 2% chance

131:11

or a 0% chance. I'll take two over zero.

131:14

>> And zero is like anything from 0% to 80%

131:17

commitment is a zero.

131:18

>> Exactly. And and you can see it in the

131:20

people in our study at certain points in

131:22

their life

131:25

when they went once they got clear right

131:28

they got out of a fog phase or they were

131:30

sort of clicked into frame for the first

131:31

time. I mean, the extent to which they

131:34

were in, I mean, it was it was this is

131:38

what I'm doing. I'm not looking back.

131:40

Here we go. That moment

131:43

when Franklin

131:46

gets dressed down by the privy council

131:50

and he realizes that it is finally, you

131:53

know, there has to be the separation

131:55

from

131:55

>> such a great story.

131:57

>> Oh god, they're dressing him down and

131:58

he's just like

131:59

>> walked in an Englishman and walked out

132:00

an American.

132:01

>> Yeah. as a history professor put it and

132:03

I I I'm pretty sure I quoted him the

132:05

history professor because this is

132:06

perfect. He walked in an Englishman,

132:07

walked out an American. But then think

132:09

think about then when they did the

132:12

Declaration of Independence because what

132:14

I came to understand by studying Roger

132:16

Sherman and Benjamin Franklin who are

132:17

the pair in this is obviously historians

132:20

know this really well. But I had to

132:22

learn a lot about the American

132:22

Revolution, the founding of the country,

132:24

the constitution, all this kind of stuff

132:25

through the pair of these people and

132:27

this difference between separating from

132:29

like parliament and separating from the

132:32

king. And the declaration of

132:34

independence was separating from the

132:36

king and that thing of an understanding

132:38

that when we signed this document,

132:42

we lose, we die, we all die. This is a

132:46

death warrant if we don't win. And that

132:48

moment of putting your signature on the

132:52

Declaration of Independence

132:55

would result in your death if you don't

132:56

win

132:58

has a way of focusing the mind to win.

133:04

>> Yeah.

133:05

>> No options.

133:06

I'd love to hear you discuss for a bit

133:11

>> what you learned from simply choosing

133:14

who to include in the book because

133:17

>> you've applied much like sometimes

133:19

people think of options as always good

133:21

things not true

133:23

>> people may think of constraints as bad

133:25

things but very often necessary positive

133:28

constraints are a real thing so having

133:31

matched pairs requires it's a forcing

133:34

function filtering Right. And even with

133:38

matched pairs, you have many you could

133:40

ostensibly choose from, and you had to

133:41

winnow that down to something that could

133:43

be contained in a coherent way in this

133:45

book.

133:45

>> And I'm wondering if as an entire group

133:48

>> Mhm. you learned from who you chose to

133:53

omit as opposed to who to include and if

133:56

anything distinguished

133:58

one group from another meaning who made

134:01

it and who didn't make it

134:02

>> outside of the matched pair forcing

134:04

function. there was a

134:07

a journey of really looking for a range

134:12

of people who would shine a light on the

134:16

questions that I was interested in. But

134:19

there's lots of folks that for whatever

134:21

reason in the end I ended up not

134:24

including and partly one of the first

134:28

you put it right on number one. If I was

134:30

going to have matched pairs I've got to

134:33

find the opposite side of the pair. So

134:36

if I found somebody so I'll give a

134:38

really good example. We're just talking

134:39

about Roger Sherman and Benjamin

134:41

Franklin. I thought that this was back

134:43

when I originally flamed it as renewal,

134:44

but then began to look at an entire

134:46

life. But I always thought Franklin

134:48

would be fascinating to study. He is the

134:51

kind of first poster child of great

134:53

stuff late. I mean, the things that he

134:55

did 70 and beyond. And of course, most

134:57

of the people in our study did great

134:59

stuff late, too. That's one of the most

135:00

uplifting findings of the study is how

135:02

much great stuff happens late. But I was

135:04

just fascinated by Franklin that way.

135:06

But then, how do you find a match pair

135:09

for Benjamin Franklin? And I was like,

135:10

well, we may not be able to have

135:11

Franklin because I don't think there's

135:12

going to be a match. How do you find a

135:14

match for Franklin? And so member of my

135:17

team and I kind of puzzled on this and

135:20

we came up with this idea which is we

135:21

said, well, let's just take all the

135:22

names of all the people who signed the

135:24

Declaration of Independence and who were

135:26

also at the Constitutional Convention.

135:28

That'll be a starting set. Now, what

135:30

we'll do is we'll go pull apart all

135:32

those lives

135:35

looking to see if there's anybody that

135:37

meets the following tests. One came from

135:40

what they call the leather apron class.

135:42

Two through self-education became a

135:44

successful business person and hard

135:46

work. Three then went on to sort of a

135:49

second life after that in some form some

135:52

sort of interesting way. Four played a

135:55

significant role in the founding

135:57

documents of the United States and five

136:00

would have been kind of a comparable age

136:02

cohort to Benjamin Franklin. Right? the

136:04

whole thing like just go through and you

136:05

start taking all these people in this

136:07

long list and you start ticking it off

136:08

and ticking off and then all of a sudden

136:09

we discovered Roger Sherman who met all

136:13

of those tests who turns out to be one

136:14

of the great finds for me in the study.

136:16

Almost no one knows about Roger Well,

136:18

that's not true. I didn't know much

136:20

about Roger Sherman.

136:21

>> I didn't either.

136:22

>> And he saved the Constitution twice.

136:24

>> The way you penned the introduction to

136:26

that

136:26

>> Oh, yeah. Who is this

136:27

>> section was really really funny.

136:28

>> Yeah. Who is this guy? And he turns out

136:31

to be amazing. and they were the two

136:32

oldest people at the constitutional

136:33

convention. They played a seinal role in

136:37

the founding of the country. And so it

136:39

was but if I wouldn't have found

136:40

Sherman, I wouldn't have been able to

136:42

have Franklin because I wouldn't have

136:43

had the match. And and so throughout the

136:46

entire study, there was this constant

136:48

process of God, that'd be really

136:51

interesting, but is there a match? I

136:52

thought it'd be fabulous to have like

136:54

Lenin and McCartney, but you have an

136:57

asymmetry. Tragically, sadly, we lost

137:00

John Lennon at a point where all of a

137:02

sudden his life's truncated and so it

137:06

just wouldn't have been as good of a

137:08

match to look all the way out, right?

137:10

So, ended up with Plant and Paige from

137:12

Zeppelin, which I think was a phenomenal

137:14

match. And so, just time and again. And

137:17

then the other part was I wanted

137:18

different walks of life. I wanted

137:20

scientists. I wanted writers. I wanted,

137:22

you know, I wanted different very

137:24

different kinds of roles and things that

137:27

people did. and different eras, right?

137:29

I've got the suffrage era. I've got the

137:30

founding of the country. I've got, you

137:32

know, the 19, you know, 20s or 40s or

137:35

60s or whatever. But the other is they

137:38

all had to be people where

137:41

their life, even if it's not over, and

137:44

most of them it is over,

137:46

is largely in the record books, right?

137:49

They couldn't be at an age where you you

137:52

sort of don't know what's really going

137:53

to happen. There's too much more yet to

137:55

live. And I'm really glad I stuck to

137:58

that because that's what really showed

138:00

the hey look at what happens after 50 60

138:04

70 and beyond. So let me ask a sort of

138:07

holistic question about all the folks

138:08

that were included also and that is

138:12

it's dangerous to assume but presumably

138:14

you could have chosen a cohort

138:17

and I've looked a lot just given my

138:19

involvement in science and studies and

138:22

so on these metaanalyses of

138:27

key contributions to science and perhaps

138:30

they're awarded with the Nobel Prize or

138:32

something much much later but

138:34

>> a lot of scientists

138:35

it seems, produce their most compelling

138:39

work, let's just say sort of in their

138:40

startup years, right? In quintessential

138:43

startup Silicon Valley terms like 18 to

138:45

25 or 18 to 30, something like that.

138:49

If that if we take that just as a

138:51

placeholder to be true for some many

138:55

scientists and maybe even more broadly

138:58

speaking in other disciplines,

139:00

what separates

139:03

the people who in the book are so

139:06

consistently incredibly

139:08

productive in their later years from the

139:11

people who don't do that? First of all,

139:13

before we even just get into this a

139:15

little bit, I want to ask you a

139:16

question, which is where do you think

139:18

this mythology comes from? That

139:22

creativity, innovation, breakthroughs,

139:26

best work, etc., etc., is the province

139:29

of the young.

139:30

>> Where do I think it comes from?

139:31

>> Yeah.

139:32

>> Well, okay. My thoughts may not be

139:34

appetizing, but let's give it a shot. So

139:37

I I think about this

139:40

part of

139:42

how I'll answer echoes I think some of

139:46

how you approach your work in the sense

139:47

that why do you study publicly traded

139:50

companies because you can compare them

139:53

across metrics and criteria that are

139:55

publicly available. You have the data

139:57

>> have the data

139:58

>> and I don't want to make everything

139:59

about startups but I do find startups a

140:03

really strange fascinating

140:07

laboratory within which you can look at

140:09

different types of phenomena. And I'm

140:12

currently right now I have a whole group

140:14

of people and we're also using cloud

140:16

code and all sorts of stuff to do the

140:18

most intense fine detailed analysis of

140:22

my last 20 years of investing in

140:23

startups that you could possibly

140:24

imagine.

140:25

>> It's pretty incredible what you can do

140:27

with enriching data and

140:28

>> so on. But one of the questions is age

140:33

of founder, right? What do you see when

140:36

you're when you're sorting by age as a

140:38

founder as as one variable which is not

140:41

independent and I would say that I think

140:44

the belief whether it's a myth or not

140:46

and I think it's situationally dependent

140:49

part of it is and hence my incessant

140:53

annoying questions about energy is that

140:58

for certain disciplines the intensity

141:01

required to sustain like a Natalie

141:05

over years of intensity is constrained

141:08

by energy and you and sometimes it's

141:12

also constrained by responsibilities. So

141:14

if you are early 20s, you're living on a

141:16

futon in a cockroachinfested apartment

141:19

eating ramen to survive and that's good

141:21

enough for you at the time. There is a

141:24

certain competitive advantage to that. I

141:26

think there's also possibly just a

141:27

mitochondrial

141:29

physical advantage. So you see a lot of

141:32

home runs are created in it seems like

141:36

to me I haven't done a fine tooth comb

141:39

analysis of this people produce a lot of

141:42

their best work when they're in those

141:43

kind of professional sports peak years.

141:46

It's not that they're limited to that. I

141:48

think that's a piece of it is just

141:52

energetic

141:53

intensity endurance advantage which may

141:56

be physiologically bound.

141:58

>> Yeah. You know that's one that's one.

142:01

Yeah. What are your thoughts?

142:03

>> First of all, I think it's really

142:04

interesting and I would I would process

142:06

this through a different lens actually

142:08

at this point which is that

142:10

>> yeah the way I would process this having

142:12

done this study is I think it's not a

142:15

question of energy. I think it's a

142:17

question of being in frame with your

142:19

encodings and that if you are I don't

142:23

think the energy is I mean there's

142:25

physical things like you can have a

142:26

something that catches up with you

142:28

physically of course right or you might

142:30

have a autoimmune disease or something

142:32

like that okay but setting aside things

142:34

physically health-wise that begin to to

142:36

come at you I just see repeated levels

142:39

of evidence from the lives I studied

142:42

here and people I've known over the

142:44

course of my more classic work people

142:46

building companies and so on and so

142:48

forth that there's no evidence to me

142:50

that the energy goes down it goes up

142:53

that the creativity goes down it goes up

142:56

and what I would say is that a founder

142:58

that kind of burns out might have not

143:01

even really been in frame being a

143:02

founder and the ones who really are in

143:04

frame building a company is just so if

143:07

you take a Sam Walton or a Walt Disney

143:10

or Steve Jobs there's no evidence to me

143:13

that their creativity that their

143:15

intensity

143:16

waned until they were basically like

143:20

expiring. And I mean Sam, he had bone

143:22

cancer and he lived a very simple life.

143:25

I don't think that some of the people I

143:27

studied that their lives changed very

143:29

much. Their circumstances changed terms

143:31

of the amount of wealth they had, but

143:32

the way they lived didn't really change.

143:34

And still get up every day and they go

143:36

to work and they do the thing that

143:37

they're there to do. And Walt is still

143:39

thinking about like what the next thing

143:41

at Epcot might be. and and Sam is still

143:44

thinking about the expansion of stores

143:45

and what could happen with the culture

143:46

and Steve Jobs is thinking about you

143:48

know what will be the next iteration of

143:50

sorts of things and how can he set up

143:51

Apple to be outstanding beyond him and

143:53

then and then life the clock stops at

143:55

some point but until then they don't

143:57

stop they don't stop they just don't

144:00

>> yeah yeah

144:01

>> so this idea

144:03

that somehow it goes like this peak and

144:06

fall right

144:06

>> peak and fall I see it as a peak when

144:09

you're young isn't this it's a peak and

144:11

then there's Yes. And it just goes up

144:13

and up and up and up and up and up and

144:15

up. I mean, you found a media empire

144:19

peak. You found a nation.

144:21

>> It's a pretty tough act to follow.

144:23

>> Yeah. Exactly. And even in the science

144:25

or creative areas, you know what it's

144:27

like to write a book.

144:28

>> Yeah.

144:28

>> And how exhausting it is, how draining

144:30

it is. And you look at Tony Morrison

144:32

doesn't even become a writer until her

144:36

40s. She comes into frame as a writer.

144:39

She doesn't publish Beloved till she's

144:41

56. She doesn't publish Jazz until 61,

144:46

which is an astounding thing. And then

144:49

she just goes on and there's no

144:51

evidence. Anybody want to say that?

144:53

Well, Tony Morrison was slowing down

144:55

when she did Beloved because she's after

144:56

50.

144:57

>> No,

144:58

>> no, not true.

144:59

>> And Barbara McClinintok, Grace Hopper,

145:02

Grace Hopper made huge contributions to

145:05

computer science. those happened as her

145:08

second career.

145:10

Barbara Mcccleintoch's breakthrough on

145:13

transpositional genetic elements when it

145:14

all came together happened after the

145:16

midpoint of her life which was in her

145:18

late 40s. So this idea that it happens

145:21

early and then I can and if I go back to

145:22

my classic work and the people who built

145:24

companies, the ones who really built

145:26

companies, the reason why I think they

145:29

didn't like have this peak early and

145:30

then they're just sort of exhausted and

145:31

burned out is because they were in

145:33

frame. Sam Walton was encoded to build

145:36

Walmart. Steve Jobs was encoded to build

145:39

Apple. Walt Disney was encoded to build

145:42

Disney. And if you're encoded to build

145:45

your company the way they were encoded

145:47

to build their companies, a startup is

145:49

just kind of the first step. And you

145:51

would still eat ramen to do it. Can I

145:53

offer an an alternate?

145:54

>> Forget me. I just I I I I chafe against

145:57

the

145:58

>> I love it. I want the chafing. A

145:59

sentence you don't hear very often. No,

146:01

I'm into it. the the alternate

146:04

explanation I wanted to offer maybe it's

146:06

complimentary but let's let's just say

146:08

we rule out my theory of professional

146:12

sports physiological advantage I think

146:14

there's a piece of that sometimes

146:15

>> sure for like singing and stuff sure

146:17

>> I won't drag that particular piece out

146:19

but let's say I take it off the table

146:21

the reason I was asking about the 50 30

146:24

20 right how do you actually maintain

146:27

the 50% of your time allocated to new

146:30

intellectual creative work is because

146:32

the alternate explanation I would

146:36

probably vote for as to why some people

146:39

seem to get lost or certainly don't

146:43

focus on their encodings after some

146:45

initial success and therefore you do see

146:47

a peak and maybe a decline or plateau

146:51

is that in the beginning sounds like

146:53

you've sustained this very well. They

146:55

wake up they know exactly what they're

146:56

doing. they are doing one or two things

146:58

but there is a primary and let's just

147:00

say it's a startup it's making this

147:01

metric go up 5% per week or per month

147:05

compounding over time that's it that is

147:06

the focus period end of story and when

147:10

you have a modeicum of success or a

147:13

lightning bolt of success and you see

147:15

this in Nobel Prize winners right I

147:17

can't remember the term for it it's like

147:18

no syndrome or something

147:19

>> yeah where their productivity just

147:21

plummets afterwards why because they're

147:23

now getting all of these invitations

147:25

over the transom

147:27

And similarly, it's like when when fill

147:29

in the blank founder putting Steve Jobs

147:31

aside, although he had his periods in

147:32

the fog for sure.

147:33

>> Well, for sure after he got fired, which

147:35

was a cliff,

147:35

>> right? So, taking someone who's maybe,

147:38

you could take your pick, of hundreds of

147:40

founders who've had an exit of some type

147:42

or done well enough that now they don't

147:45

necessarily feel like they have a demon

147:47

whipping them at their back. Again, that

147:49

>> Mhm.

147:50

>> is not necessarily entirely compatible

147:52

with the the encodings, but the the

147:55

point being now they're thinking about

147:58

the charity whose board they just

148:01

joined. They're thinking about any

148:04

number of other things that slowly or

148:09

quickly eat up the pie chart of time

148:12

such that they are well below their 50%

148:16

in terms of new intellectual creative

148:17

work or applying it to their encodings.

148:20

How have you seen people most reliably

148:22

preserve that outside of some mutants

148:25

who are maybe like I certainly see this

148:26

in Silicon Valley on the spectrum who

148:28

are seem unable to do anything but focus

148:30

on their encodings. What have you

148:32

observed in in all of your studies to

148:36

people who are how they are good at

148:38

preserving the majority of the pie chart

148:41

for their encodings because I find it

148:42

very very very challenging.

148:44

>> I do. I do. I'm not going to lie.

148:46

>> It is just for myself. I have one great

148:48

advantage which just part of my

148:50

encodings going all the way back to the

148:52

way you even wrote about described our

148:54

first conversation. I'm belligerently

148:56

reclusive. It's a temperament, right?

148:59

It's a temperament. People have often

149:01

said, "Well, Jim, you must be feel

149:03

really lucky that you're, you know,

149:04

you're in you're such an enviable

149:06

position because it's easy for you to be

149:08

selective and to say no to stuff because

149:09

you have so much to select from." And

149:11

what they don't see is that I was always

149:14

selective even when I didn't have

149:16

anything to select from. Right? It's an

149:18

encoded mode that I've always had. So

149:21

for me, it's it's been I think easier

149:24

than for some people because they maybe

149:26

don't have that encoded mode of

149:28

belligerently reclusive and naturally

149:31

selective as a way of being independent

149:34

of circumstance. But then that that

149:36

brings me to

149:38

I think what I would really see with the

149:41

people in our study is that there's

149:42

phases of life. I don't think they're

149:44

common stages by the way. They're just

149:46

phases. You're kind of in a phase or out

149:47

of a phase. And there's what I would

149:50

describe as kind of clarity phases and

149:52

fog phases. And we talked about the fog

149:54

phases. But there are also these times

149:56

of great clarity when they click into

149:58

frame with a really big thing. And

150:01

sometimes they click into frame with a

150:02

really big thing. And it is the big

150:04

thing till the day they die, right? It

150:06

just they just all the way to the end.

150:08

They may have cliffs, but it doesn't

150:09

knock them into doing something else.

150:11

Tony Morrison just kept writing and

150:12

Barbara McClend just kept doing her

150:14

genetics and Robert Plant is still doing

150:16

music, right? They found the big thing

150:17

and and it's just like that's just what

150:19

I'm going to do. And then there are

150:20

others who life would hit them or they

150:24

would make a change and they kind of go

150:25

through a fog phase and then there can

150:28

be a lot of these different sort of

150:29

noisy things around them. But then they

150:31

click in again with a big thing. And

150:34

what happened with the people in our

150:35

lives is there are these times when

150:38

they're doing something they're encoded

150:39

for that really feeds their fire that

150:40

they're willing to flip the arrow of

150:42

money to do. And this is the other part

150:43

we need to talk about about this. What

150:45

happens is once they do that, it's a big

150:49

thing, right? And they go into what I

150:52

describe in the book as hedgehog mode.

150:54

There are times in life when you're in

150:55

hedgehog mode. This is the big thing I'm

150:57

doing. Now I may have some other things

150:59

around here but I'm really clear on the

151:02

big thing and sometimes they get out of

151:05

that but then they'll come back to a

151:07

version of being in the big thing

151:10

science building my company founding a

151:13

nation right you know big big big right

151:16

>> Tuesdays got to focus on founding the

151:18

nation yeah

151:19

>> exactly and so I think that once you

151:22

click in with the really big thing you

151:24

give yourself over to it and it sort of

151:26

dominates it's kind of like sure you may

151:27

tributaries in your life of water, but

151:30

there's a big river which is the

151:32

Mississippi of how you allocate

151:34

yourself. Now, there can be a lot of

151:36

pieces within it. It can have a lot of

151:38

subpoints to it, right? It might not be

151:40

as simple as just I solve genetics

151:41

puzzles, but it's got a big organizing

151:44

theme around it.

151:46

>> If that's simple, man, I don't know what

151:47

my life is, but yeah.

151:50

>> Yeah.

151:51

>> Pickup sticks.

151:52

>> But this thing about flipping the arrow

151:54

of money. So now thinking about it this

151:55

with the startup community and so forth.

151:58

One of the things that is very clear

152:00

about how people really got in frame in

152:04

our study and I really resonate with

152:07

this as I reflect on my own life too but

152:10

question is what's the arrow of money?

152:13

Are you doing what you do to make money

152:16

or do you need money to do your work? Is

152:19

money fuel

152:21

back to the flywheel? Is it simply fuel

152:24

to make the flywheel go further? Is

152:26

money fuel to write your next book? Is

152:28

money fuel to do the next Zeppelin

152:30

album? Is money fuel to be able to do

152:33

your science? Is money fuel to be able

152:36

to be a provocative questionnaire in the

152:39

world? Is money fuel? Money is a fuel

152:43

and that's the direction of arrow this

152:45

way. The other is the direction, the

152:47

flipping of the arrow of money of

152:49

actually the truth is if I strip it

152:51

away, the truth is in the end, a big

152:54

part of this is I'm doing this to make

152:55

money. And what I found with our people

152:58

is if they had flipped the arrow of

152:59

money that the only purpose of money is

153:01

to be able to do what I'm encoded for

153:03

that feeds the fire that that's that

153:05

that's the point of it. So I never have

153:07

to stop. Then you have a very different

153:09

relationship to success when it comes.

153:11

if it was about the money and then you

153:14

get the money and you were never really

153:16

in frame in the first place maybe or

153:18

maybe you were but I think that notion

153:20

of what is the direction of the arrow

153:22

plays a big role in what happens when

153:25

you get say to the other side of having

153:27

built something succeeded or whatever

153:30

and I go back all the way to my classic

153:32

work I think the great company builders

153:34

that I studied it was never about the

153:36

money it was what they were building and

153:39

that's why they never ran out of steam

153:40

no matter how much money they made, they

153:42

never ran out of steam. And I think

153:45

that's a really critical part of how

153:49

this cycle gets gets managed.

153:52

>> It's a huge piece from what I can tell.

153:54

And I'll just throw a few things out

153:55

there and then I want to also make sure

153:57

I don't forget to ask you about this

153:59

live event that I believe you're doing.

154:01

>> Oh yeah.

154:02

>> Not too not too far from now.

154:03

>> Thank you for reminding me about that.

154:04

Yeah,

154:05

>> absolutely. So I'll sprinkle some some

154:08

thoughts. So the the first is the older

154:10

I get the more I think about

154:13

I guess finite and infinite games cars

154:16

>> and just along the lines of what you

154:18

were saying like fuel being very clear

154:20

to distinguish between fuel for the

154:22

journey and the journey itself and it

154:24

makes me think of this quote people

154:26

should look up I think I may have had

154:28

him on the podcast in fact Tim O'Reilly

154:30

>> fascinating figure in Silicon Valley

154:32

publisher but much more than that and

154:34

I'll paraphrase his quote which is

154:37

imagine life as a road trip across the

154:41

country, you need fuel for the trip, but

154:44

it's not a tour of gas stations.

154:47

And

154:49

>> also, if you're selecting

154:52

perhaps using a reframed question from

154:55

Seth Goden, so the question people often

154:57

hear is, "What would you do if you knew

154:58

you could not fail?" It's like, okay.

155:00

And I have a mug with that on it, and

155:03

it's helpful to think about that.

155:05

>> You're a six. You're always going to be

155:06

worried about failing.

155:09

>> Well, the way Seth puts it is he said,

155:10

"What would you do if you knew you would

155:12

fail,

155:13

>> right?" Which forces you to think about

155:16

the actual day-to-day process of

155:19

traveling on whatever that journey

155:21

happens to be. Those are just a few

155:23

things that came to mind.

155:24

>> Yeah. And also it's like the more I do

155:26

certain things in my life, the more I

155:27

realize, yes, there might be there might

155:29

be it's a big might, a monetary reward.

155:32

And I've maybe been rewarded in the

155:33

past, but now I just want those

155:38

additional chips if they come so I can

155:40

keep putting them back into play,

155:44

which may not be the most financially

155:45

responsible all the time, but I'm also

155:47

not anywhere. I'm much like Richard

155:50

Branson or a lot of these other folks

155:52

people think of as risktakers. They're

155:53

actually really expert risk mitigators

155:55

if you really dig into their stories.

155:57

They're very rarely at risk of ever

155:59

touching that death line that you were

156:00

talking about.

156:01

>> So let's let's if you want to hop into

156:03

it since I know we're got to be coming

156:05

up on three hours now.

156:08

Do you want to mention this live event?

156:10

>> There are very few times when I'm just

156:13

out there in a public event that people

156:15

can sign up for. but related to this on

156:19

April 9th at the Commonwealth Club in

156:22

San Francisco.

156:23

>> Great spot.

156:24

>> Yeah. We're going to be doing a

156:25

conversation on the evening around the

156:27

ideas in this book. I don't know what

156:28

direction the conversation exactly will

156:30

go, but I know sometimes people are

156:32

like, "Is Jim ever, you know, going to

156:34

be live at something?" And usually there

156:36

are things people can't sign up for, but

156:38

this is one they can. So, I would hope

156:40

to see some friendly faces there and

156:42

maybe even people are provoked a little

156:44

bit by our conversation in some way. And

156:47

I would look forward to that very much.

156:50

>> So if people search Jim Collins

156:52

Commonwealth Club, would they

156:53

>> I think they should be able to. I would

156:55

hope so. Yeah. Does the Commonwealth

156:56

Club April 9, San Francisco?

156:59

Yeah. What to make of a life Jim

157:00

Collins. They can find it there.

157:02

>> In our second conversation, we're going

157:03

to start to land the plane shortly, but

157:05

I was looking at

157:08

a reference to the good to great

157:10

acknowledgements. M

157:12

>> uh this was also something that I think

157:13

you may have brought up and I'll just

157:16

read the line because there may be

157:18

something that was elided here

157:19

>> but success dot dot dot is that my

157:22

spouse likes and respects me ever more

157:24

as the years go by

157:25

>> and I'm wondering if you would keep it

157:28

to that if you would revise that add to

157:32

it simplify it how do you think about

157:35

success these days

157:37

>> I think that's one of the best

157:38

paragraphs I ever wrote is the final

157:42

acknowledgement paragraph and good to

157:43

great and I really would still see that

157:47

as for me the ultimate definition of

157:49

success in life. Joanne and I the

157:52

ultimate hoolock, right? We got engaged

157:54

four days after our first date.

157:55

>> Seems to run in the family. I guess

157:57

>> it does. And the Natalie moment was

157:59

she's saying yes now. I should say yes.

158:02

Let's get married.

158:05

>> A smart man.

158:06

>> It was very much. But then the the thing

158:08

is that and then 45 years is the return

158:11

on luck, right? They were going to do 46

158:13

this year. your spouse knows you like no

158:16

one.

158:19

and kind of to me,

158:22

I mean, my

158:25

the depth of my not just my love for

158:27

Joanne, but the depth of my respect for

158:30

her, for her intellect, for her

158:32

integrity,

158:34

for her amazing ability to to speak so

158:40

directly and sharply to me about what

158:42

needs attention. our marriage works

158:45

because multiple reasons it works but

158:46

one of it is Joanne is incredibly good

158:49

at seeing what's needs attention

158:52

and I'm encoded to hear it and the

158:55

combination is what is a great

158:59

combination for us and she's strategic

159:03

guidance mechanism I'm creative

159:05

propulsion

159:07

and

159:08

I over the years somehow just began to

159:12

realize that Joanne can see me for

159:16

really who and what I am, what my real

159:18

motivations are, why I'm doing things,

159:20

my weaknesses, my flaws, my fracture

159:22

points, my unlikable tendencies,

159:25

whatever they might be. When I wrote

159:27

that sentence, and it's as true today as

159:29

ever, the measure for me is that Joanne

159:32

will love me unless I did something

159:34

really stupid. Joanne will love me

159:36

regardless,

159:39

but will she like me more as the years

159:42

go by?

159:44

Will she respect me more as the years go

159:48

by?

159:50

And for me, that

159:54

like the truest, most searing test is if

159:57

Joanne likes and respects what she sees,

160:01

I'm not too far off the mark. and other

160:04

kinds of success have come and I want my

160:06

work to be read and all those sorts of

160:08

things. But that really is if I had all

160:12

kinds of external success but I lost

160:14

Joannne's respect or Joanne woke up one

160:16

day and was like well I actually don't

160:18

really like you anymore.

160:20

>> That'd be a bummer of a day.

160:21

>> Yeah, that would be the worst possible

160:23

kind of failure.

160:24

>> Jim, that's deeply inspiring. I find

160:27

your life and your examination of your

160:29

life and the lives of others deeply

160:31

inspiring. People can find you at

160:33

jimconins.com. The new book, I encourage

160:35

people to check it out. I read every

160:37

page of it. What to make of a life,

160:39

subtitle, Cliff's Fog, Fire, and the

160:42

Self-nowledge Imperative. That's the

160:44

book that people will be able to find

160:46

everywhere. Is there anything else you'd

160:48

like to add before we wind to a close?

160:51

>> I would just add that it is truly a

160:54

great joy to connect with you in

160:58

conversation. Again

161:00

the range of things that we get to talk

161:03

about the quality of your questions it

161:06

is as you know I track my days minus 2

161:11

-1 0 + 1 + two our conversation makes

161:17

today absolutely for me a plus two day I

161:21

would converse with you anytime

161:23

>> thanks Jim that makes my makes my day

161:26

and

161:27

always a pleasure to connect. Hopefully,

161:30

we'll have a chance to break bread in

161:32

person in the not too distant future.

161:34

That would be nice.

161:35

>> Yeah.

161:35

>> Or like get into the mountains.

161:37

>> Yep.

161:37

>> And for everybody listening, we will

161:40

link to everything, including the new

161:43

book, What to Make of a Life, and the

161:46

Commonwealth Club and so on. In the show

161:48

notes, tim.blog/mpodcast.

161:50

Just search Jim Collins and go to the

161:54

most recent episode. And until next

161:56

time, be just a bit kinder than is

161:58

necessary, not only to others, but also

162:01

to yourself.

162:03

>> Oh, I love that.

162:05

>> Thank you, Jim.

162:06

>> You're welcome.

162:06

>> And thanks to everybody for tuning in.

162:08

Till next time, take care.

Interactive Summary

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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