THE 21 IRREFUTABLE LAWS OF LEADERSHIP

The 21 Irrefutable Laws of Leadership was written out of many studies and observations John Maxwell has carried out on leaders in various sectors like business, politics, military, sport and most of all his personal leadership experience. He poured out his heart into this book by giving us 21 laws that can help you become the most powerful and effective leader. The principles of leadership do not change over time, only the application does. These principles or law brings consequences; people will either follow you or they will not. It will depend on your mode of application. These laws when applied in real life form the foundation of leadership.

  1. LAW OF THE LID:  The law of the lid states that leadership ability is a determinant of a person’s level of effectiveness. This means that your effectiveness is determined by your level of leadership. When your level of leadership increases, you become more effective. An increase in effectiveness directly affects the level of success.
  2. LAW OF INFLUENCE:  Leadership is different from every other subject matter such as management or entrepreneurship. The true definition of a leader is determined by the level of people he has influenced. Your followers are the proof that you are a leader, nothing more or less.
  3. LAW OF PROCESS: Maxwell explains five different phases of leadership growth. He also explains that what sets a leader apart from their followers is their ability to learn, develop and improve their skill.
  4. LAW OF NAVIGATION:  A true leader is a leader with foresight. Leaders chart the course for their team because they have full vision of where they are going, understand the challenges and risk and also understand the right set of people needed to achieve the vision.
  5. LAW OF ADDITION: This law defines the ability of a leader to add value by serving others and making things better for them.
  6. LAW OF SOLID GROUND: The foundation of leadership is trust. Trust is built when a leader is consistently competent and displays remarkable character. Character conveys potential and builds respect.
  7. LAW OF RESPECT: In this book, Maxwell explains six ways leaders gain respect and how to access and improve your level of leadership. Leaders tend to stand out while others follow because they are perceived to be stronger.
  8. LAW OF INTUITION: We relate and see people based on who we are so leaders also see things with leadership bias. Maxwell explains in detail various ways a leader can apply their leadership bias and how to improve their leadership intuition.
  9. LAW OF MAGNETISM: You attract who you are. It’s as simple as that. People are drawn to others with similar characteristics like attitude, ability, leadership ability, energy level, etc.
  10. LAW OF CONNECTION: The key to connecting with people is by relating to them as an individual even if they are in a group. There is a need to connect with people emotionally as a leader before you can move them to action. Maxwell shares a bigger picture of how you can connect with yourself and others.
  11. LAW OF THE INNER CIRCLE: Your inner circle is the group of people you turn to for advice, support and assistance. These people must be chosen intentionally. They must be people who display excellence, maturity and good character in everything they do.
  12. LAW OF EMPOWERMENT:  The important thing in empowerment is believing in people. Most leaders refuse to empower others due to three key reasons: resistance to change, desire for job security and lack of self-worth. In this book, John Maxwell sheds more light on how to improve your self-worth and empower others.
  13. THE LAW OF THE PICTURE: Exceptional leaders understand the irreplaceable role of vision. A vision shows the picture of what is to be achieved. Therefore, for a leader to communicate it effectively, he/she has to model the vision by setting the right example and showing the way. This act of modeling gives the followers credibility, passion and motivation to carry on with the vision.
  14. THE LAW OF BUY IN: The secret is people buy into the leader first before buying into the vision. They listen to people who they trust, believe in and feel they are credible and worth going along with.  When followers buy into the leader and the vision, then they are ready and willing to follow such leader through any challenge and success.
  15.  THE LAW OF VICTORY:  A Good leader must take responsibility for all actions, be creative and transfer his success and passion to his followers. Failure or quitting is not an option on a leader’s list.  Maxwell wrote ”one thing victorious leaders have in common is that they share an unwillingness to accept defeat.” As a result, they take responsibility for the success of the team and do what it takes to lead the team to victory.
  16. THE LAW OF BIG MO: Momentum is a leader’s best friend. An organization or team with momentum can successfully pass through any obstacle, and momentum is a determining factor between winning and losing. It makes you unstoppable. In this book, Maxwell shares several characteristics of the Big MO and how to access where we are.
  17. THE LAW OF PRIORITIES:  Don’t just get busy, get productive. The heart of the law of priority states that leaders understand that activity is not about accomplishment. This means prioritizing requires leaders always to think ahead, to know what is more important and how it all relates to the vision. Maxwell discusses the Pareto principle and other key factors that help in setting a priority list which are Requirement, Reward, and Returns.
  18. THE LAW OF SACRIFICE: This law gives a glimpse of what leadership life is.  A leader might be looking glamorous on the outside, but the secret behind his true leadership is that he has sacrificed and still sacrificing. The hidden secret behind success is the sacrifice. And a true leader does not only sacrifice but also put others ahead of him.
  19.   THE LAW OF TIMING: Leadership is not only about how to lead but discerning the right time to take action. Maxwell summarizes his statement by saying “taking the wrong action at the wrong time leads to disaster and the right action at the wrong time leads to resistance while the wrong action at the right time leads to a mistake”. This shows that leadership ability goes beyond leading.

 

  1.   THE LAW OF EXPLOSIVE GROWTH: You can attain explosive growth when you choose to lead leaders and not followers. To lead leaders, you have to focus on the strength and not weaknesses, treat everyone differently and invest quality time into others rather than spending time together. Maxwell summarizes this law by saying leaders who develop other leaders experience incredible multiplication effect in their organization that can be achieved in no other way.

  1. LAW OF LEGACY:  This is the final law in this book. The law of legacy states that a leader’s lasting value is measured by succession. What do you want to be remembered for? Maxwell summarizes the life of a leader by saying that “achievement comes when they do big things by themselves. Success comes when they empower followers to do big things for them. Significance comes when they develop leaders to do great things with them. Legacy comes when they put leaders in the position to do great things without them.” He ends the chapter with the thought, “our abilities as leaders will not be measured by the buildings we built, the institutions we established, or what our team accomplished during our tenure. You and I will be judged by how well the people we invested in carried on after we are gone.” This is the greatest challenge of  a lifelong pursuit of leadership, but it is also the only thing that will matter in the end.

Undoubtedly, you are eager to know other laws of leadership. The 21 Irrefutable Laws of Leadership not only explains the laws but include several tips on how to apply the laws. Do not hesitate to feed on the richness of this innovation.

KEY POINTS

Key point #1: Leadership is built on trust and compounds over time

Key point #2: Leaders attract who they are.

Key point #3: Leaders must learn, grow and develop.

One Last Thing

“Leaders Who Attract Followers . . . Need to Be Needed

Leaders Who Develop Leaders . . . Want to Be Succeeded”

John C. Maxwell, The 21 Irrefutable Laws of Leadership: Follow Them and People Will Follow You

Zero to One

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

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

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

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

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

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

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

THE BIG THREE – KEY POINTS

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

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

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

One Last Thing

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

THE OUTLIERS

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

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

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

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

 

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

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

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

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

The Big Three – Key Points:

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

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

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

 

One Last Thing

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

― Malcolm Gladwell, Outliers: The Story of Success

Innovators

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

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

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

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

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

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

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

THE BIG THREE – KEY POINTS

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

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

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

The Age of Agile

Stephen Denning, the former program director of knowledge management at World Bank, now works with various organizations in the U.S., Europe, Asia, and Australia on leadership innovation, Agile management, and organizational storytelling to discover the unfolding age of agile. This book focuses on how some organizations are learning to operate in a way that is much better for those doing the work, recipients of the work, the organization and the society.

The author discovered the default operating system for almost every medium-sized business and large-scale business to be bureaucracy (an organization system that discriminates between the managers-thinkers and the employees-doers). This system of management was designed to produce a consistently average performance to a set of internal rules. Its vertical chain of command was never designed nor is it capable of moving fast enough to respond to what is known as VUCA Markets. VUCA stands for Volatile, Uncertain, Complex and Ambiguous marketplace also referred to as ‘Agile.’

 

The agile movement began decades ago in the manufacturing arena but gained traction recently in an unexpected place; software development. It was published in Agile Manifesto in 2001. The unusual part is that no one would associate the Information Technology department with such a robust management system. The author affirms that organizations that operate as agile are capable of being highly innovative and pragmatic. Take, for instance, an organization like Morningstar. The world’s largest tomato processor has no manager and all the key decisions are made by the “Blue Collar” employees. The company has move competence down to the individuals who have information and the context to make the best decision instead of moving it upward.

The Age of Agile offers insight on how to get individuals to think and behave like owners and reap the financial benefits that flow from this. One of which is the organization must be transformed into small localized units, each with its profit and loss responsibility. Most importantly, traditional management practices such as manipulating staff and trying to manipulate the customer must be dumped and replaced with treating people like an adult. The Agile paradigms are neither easy to understand nor easy to implement for traditional managers. Agile has become widespread and popular over the past decades with tens of thousands of organizations around the world. The author explains that the new paradigm is a journey, not an event. It involves unending innovations regarding specific innovation generated by the organization for the customers and steady improvement to the practice of management itself. He further explains that Agile Management is based on three laws; the law of the small team, the law of customer and the law of network. The law of small team requires that work is done in small, autonomous, cross-functional teams, working in short cycles on relatively small tasks and getting continuous feedback from the ultimate customer or end user. When you work in such teams, situations can be analyzed, decisions can be made and action taken as a single uninterrupted motion. Work can be fun and everyone will flow with it.

 

The law of customer is that the highest priority is to satisfy the customer.  Many managers are aware of the common phrase “The customer is number one”! While continuing to be internally focused, bureaucratic and fixated on delivering shareholder value. In an Agile organization, everyone is passionately obsessed with delivering more value to customers.

The third law according to Stephen Denning is the Law of the Network where leaders are not fierce conquering warriors but rather like curators of gardens.  When an organization truly embraces Agile it is less like a giant warship and more like a flotilla of tiny speedboats. This law is the recognition that competence resides throughout the organization and outside the organization. A problem can be solved and innovation can emerge through networking inside and outside.

Age of Agile furthermore cites common mistakes leaders make when planning to implement and derive the benefits of Agile. These include introducing agile as just another business process with top management hedging their bets on its success by a less than fulsome commitment.

The author affirms that agile can continuously deliver more value to customers from less work and will result in terrific returns to the organization.

THE BIG THREE – KEY POINTS

Key point #1:  Agile helps organizations to be highly innovative and efficient as well as passion filled and pragmatic.

Key point #2: Agile management, when done right, can continuously deliver more value to customers from less work and yield a substantial result.

Key point #3: Agile organizations also have a hierarchy, but one of competence and not authority.