Grit: The Power of Passion and Perseverance

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This book falls into two different categories because of the content that it presents. It is a self-help book as well as a guide for those who are in the business market. This book tells different stories which assists the reader in seeing the results of grit and the power of this particular habit.

​The book discusses how the people should not depend on their intelligence as the basis for their success. It is true that a natural talent at something could take a person far in that field, but with passion and perseverance, the person can go even farther than that. Duckworth goes on to explain that without grit, even the most talented people are unable to complete their job. They need to keep going in order to be the best at what they do. She takes the examples of many different authors and uses their point of views to explain the concepts.

There are four characteristics of the Grit model, which one must possess to make it in the field that they want. 

  • Interest: This is the single most important thing which can assist one in being gritty. This is because without interest one could never be truly passionate about a subject.
  • Practice: One must practice the work that has been given to them so that they can achieve mastery of that skill.
  • Purpose: This is important because, without purpose, one can lose the sight of their goals and get lost along the way.
  • Hope: This is significant because, without hope, people find it easier to give up. Those who are hopeful, even when the times are tough can endure all the problems and make it through the storms they are facing.

The story about hope has been explained through the words of Pete Carroll, and how hope is real. Those who give up on hope, simply give up on life and that is not the mindset of those who are full of grit. Being gritty is not in the control of ordinary people, and that is why one must understand the emotional aspects of this phenomenon as well. She explains that grit is physical as well as mental, which is why the people must learn to focus on both the aspects. She does a great job by explaining through the example of SAT exams and those who have been successful in these tests. Through her formula, these test results, as well as those of other official tests, could be predicted easily. Those who put through effort into the preparation would merely achieve better results, even if the time they spent on the work has been shorter.

Lastly, the book talks about how people who are grittier have the passion for mastering the skills that they are working on. These people practice again and again, and that is their decision to do so. Many people, when reaching a goal would sit back and relax, which could assist them in developing the habit of relaxing. While on the other hand, those people who have grit practice their aims again and again even after they have achieved it. This is because they enjoy doing that work and get satisfied with what they are doing. That is why they become so successful and the masters of what they are doing.

THE BIG THREE – KEY POINTS​

Key point #1: Grit is not just about the act of perseverance. It takes a lot more than that to become successful in life.

Key point #2: Passion is one of the leading points, those who have it, will persist longer than others. It is the internal motivator of all.​

Key point #3: Without purpose, passion would not take one anywhere! It is the external motivator and urges the person to complete their goals.

One Last Thing

“Our potential is one thing. What we do with it is quite another.”
― Angela Duckworth

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

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

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

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

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

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

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

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

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

THE BIG THREE –  KEY POINTS

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

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

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

THE 8TH HABIT:  FROM EFFECTIVENESS TO GREATNESS

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

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

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

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

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

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

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

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

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

2) Inspiring others to find their Voice:

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

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

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

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

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

The Big Three – Key Points

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

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

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

One last thing

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

So Good They Can’t Ignore You

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

 

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

 

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

 

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

 

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

 

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

 

The Big Three – Key Points

 

Key Point #1:

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

 

Key Point #2:

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

 

Key Point #3:

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

 

One Last Thing

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

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

Respect

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Sara Lawrence reaches deep into the human experience from the drama of birth to the solemn vigil before death to find the essence of respect. This book reveals the most powerful ingredient in any relationship both personal, professional or public life and also tries to dismantle hierarchies and other forms of denomination and replaces them with a sense of humanity, compassion, and equality.

 

Sara Lawrence was motivated by her interest in exploring the underlying nature of respect and some personal memories. She is also drawn to the concept because she understands the undying importance respect holds in both public and private life cycle. The traditional view of respect, though rarely expressed in its pure form, tends to be relatively static and impersonal. The remnants of this view survive today and shape our expectations, apprehensions, and disappointment. She discovered that respect is not the passive deference offered to a superior but the active force that creates symmetry even in unequal relationships.

Lawrence rejects what she terms the “traditional” notion of respect that accords esteem with rank and social status, often of an inherited sort. She desires to create a new view of respect that is egalitarian, that generates equality between people, mutual empathy and connections of solidarity. The author believes that respect has six qualities: 1) empowerment 2) healing 3) dialogue 4) curiosity 5) self-respect and 6) attention. Each chapter of the book focuses on a quality, interpreting it through concrete narratives.

She illumines empowerment by talking about Jennifer Dohrn, a nurse midwife; healing through the actions of pediatrician Johnye Ballenger; Dialogue through the work of Kay Cottle, curiosity in light of Dawoud Bey, artist, and photographer. Self-respect as expressed in the dignity of law professor David Wilkins who believes there is a proof that self-respect must come not from external measures but from within; only then can individual relate respectfully. And attention as exhibited in the pastoral care of Episcopal priest Bill Wallace. Bill Wallace move insight into the value of attention and silent presence as they relate to respect and the dying.  

Through striving for a type of simplicity of theory, the author never shows philosophically what respect itself means nor how its various qualities are coherently related to one another. She means to say that respect gives rise to attention which of course is true but so do a lot of other motivations that runs a spectrum from the desire to manipulate to the simple permission to contemplative awe.

 

The author works with the premise that respect is the primary virtue of moral life in our society such that it finds everything good- from curiosity to healing from dialogue to attention. There are essential components needed for a respectful relationship.

Usually, respect is seen as involving some debt owed because of their attained or original position, their age, gender, class, race, professional status or because of an accomplishment. This book focus on the way respect creates symmetry, empathy, and connection in all kinds of relationship.

THE BIG THREE – KEY POINTS

 

Key point #1: Respect generates respect, a modest loaf becomes many.

 

Key point #2: Respectful relationships have a way of sustaining and replicating themselves

 

Key point #3: Respect creates symmetry, empathy, and connection in all kinds of relationship.

One Last Thing

“I speak to everyone in the same way, whether he is the garbage man or the president of the university.”

― Albert Einstein

THE 21 IRREFUTABLE LAWS OF LEADERSHIP

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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

The One Thing

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The one thing by Gary W Keller and Jay Papasan is focused on understanding that one thing you need to focus on to make you successful. Not all tasks on your to-do list matter equally. There are some that are of high importance and consistently give a successful result, that is the ONE THING we are referring to. Sometimes it is the only thing you do, sometimes; it is the first thing you do. Whatever ways you handle it, there is always a key phrase that says doing the most important is the most important thing to do. You have to make the hard things easy to do by disciplining yourself.

Things become easier after you have discipline yourself and establish that habit not only the thing you trained yourself for. The key point is, aim for bigger achievement, dream big, follow peoples trail and don’t be scared o fail. Sometimes we blindly believe in some lies that sound like truth and this has a great impact on your productivity. Some of these lies are multitasking, everything matters equally, a balance etc. Gary and Jay made us understand that there is nothing like multitasking, equality, willpower. They are all lies. It is much advisable to do fewer things for more effect than doing many things with side effects. Successful people work with a clear sense of priority and not from junks of priorities. Gary Keller and Jay Papasan reminded us again of the 80/20 principle. He shared in his book that we don’t need a To Do list; instead we need a success list. A success list is a list designed purposefully around your highest leverage activities. Your leverage activities can be determined using the 80/20 principle. The principle states that the MINORITY of your effort is what leads to the MAJORITY of your result. Your little investment today will yield a bigger result of what you will experience. So most importantly, you have to understand those minute tasks, those little tasks you should divert your 20% attention to that will yield 80% impact on your results. With this, you have been able to turn your to-do list into success list. Gary continues, “You can do two things at a time but you can’t focus effectively on two things at once. The truth is when you focus on two things you feel you are multitasking without paying cognizance to the fact that your attention is being divided and something is serving as a distraction at that particular time. I admire a quote that says take up two things, and your attention gets divided, take on three things, and somethings get dropped. The buzz, flash, pings on your phones can wait or be avoided by shutting down your phone just for the limited period you need to concentrate. People who seem like they are highly disciplined has conditioned a handful habits into their lives. Developing a habit takes an average of 66 days, with your willpower and persistence you can turn your discipline into a habit and things become easier to execute. In summary, your willpower each day is limited so use it wisely and do the most important things first so that you will not miss it.

The Big Three – Key points

Key Point #1: Do fewer things and get more effect rather than doing many things with side effects

Key Point #2: Discipline can be groomed into a habit

Key Point #3: Work with your success list and not your To Do list

One Last Thing 

“Work is a rubber ball. If you drop it, it will bounce back. The other four balls– family, health, friends, integrity– are made of glass. If you drop one of these, it will be irrevocably scuffed, nicked, perhaps even shattered.”
― Gary Keller

Zero to One

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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

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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

Innovation and Entrepreneurship

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

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

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

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

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

The Big Three – Key Points ​

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

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

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

One Last Thing

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

― Peter F. Drucker, Innovation and Entrepreneurship