Tuesday, March 26, 2024

The Art of Skills

“The fox knows many things; the hedgehog knows one big thing.” ------ Archilochus, 8th century BC 




A degree outside the mainstream there is a rare gift that is best appreciated by those with a deep understanding of the craft. That gifted man may not fill the biggest arenas, but he has a fine talent that earns esteem.

  •  Warren Buffett hasn’t had to work for money since he was 25 years old and yet he keeps working well into his 90s. 
  • Sam Walton who was a successful teenage entrepreneur and kept going long after he became the richest person in America.
  • Leonardo da Vinci carried a notebook wherever he went and in 1519 on his death bed he was observing in scientific detail the nature of his illness. 

There is a concept defined in the book Finite and Infinite Games by James Carse; Life is divided into two types of games. “Finite games” exist to be won; “infinite games” are designed simply to keep playing. Lifelong art like writing, painting, and company-building fall into the latter. You can practice and learn until your dying breath.

In a rapidly evolving business environment with a competitive talent marketplace, your organization’s skilled workforce is your most powerful differentiator. Finding and tapping the skills you need—and recruiting and retaining that talent—is critical to the success of any organization.

A recent Deloitte Insights report said organizations with a skills-first hiring approach to talent are 107% more likely to place talent effectively, 98% more likely to retain high performers, and more likely to build reputations as great places to grow a career. Two-thirds of workers say they would be more attracted to join—and more likely to remain at—an organization that values and makes decisions based on their skills rather than on their degrees and previous jobs.

Learn from these differentiators:

“Every great institution is the lengthened shadow of a single man. His character determines the character of the organization.”......Ralph Waldo Emerson: 

“We provide autonomy and space with freedom to operate, without fear of failure. We’re curious, open minded, and collaborative. And although we’re thought leaders, we’re humble, and willing to share knowledge and learn from one another.” .......Former CEO Richard Goyder of Wesfarmers aptly encapsulates the pivotal importance of culture to the company’s trajectory on growth noting that “culture is very hard to build and easy to destroy.”

These differentiators possess industry knowledge and focus on key financial metrics like return on capital employed complemented with “above-the-waterline characteristics” with “below-the-waterline characteristics.” like: 

  • emotional intelligence, such as interpersonal sensitivity
  •  broad interests that encompass diverse areas
  • the ability to contemplate how global issues may impact the business. 

A skilled workforce is essential for driving productivity, innovation, and competitiveness across industries. Employers must invest in recruiting, developing, and retaining skilled talent to support organizational objectives and maintain a competitive advantage in today's dynamic and fast-paced business environment. Additionally, governments, educational institutions, and industry stakeholders play crucial roles in fostering a skilled workforce through investments in education, training, workforce development programs, and policies that support lifelong learning and career advancement.

See You at The Top

Thursday, February 29, 2024

Wealth Beyond Career

“A shoe is just a shoe until somebody steps into it. Then it has meaning.” .........Nike marketer Sonny Vaccaro


In business school, corporate finance professors teach three well-established principles about value:

1. The value of a business is equal to the present value of its expected future cash flow (CF).
2. Revenue growth and return on capital (ROC) drive CF.
3. For growth to create value, ROC must exceed the cost of capital.

In the 40 years “Jordan Brand” has grown into a global franchise, with Nike’s 2023 annual report attributing $6.6 billion in gross revenue to the sub-division.

In many respects, the brand has extended beyond basketball into other sports and public consciousness. Around the world, “Jumpman,” the brand’s iconic logo, will outlive Jordan.

The rise of social media and software allows individuals to monetize directly, cut out intermediaries, and build extraordinary wealth. Rather than relying on executives like Sonny Vaccaro and Nike founder Phil Knight, today’s Air Jordan could run on Shopify, collect payments through Stripe, and advertise over Instagram and TikTok with 100% ownership.

A few athletes building wealth beyond their careers. 

LeBron James, $1 billion. One of the challengers to Jordan’s title as the NBA’s greatest ever has reached $1 billion in net worth while still competing for championships. In addition to banking high salaries, James has taken equity in brands like Beats by Dre and Blaze Pizza. He has also spearheaded a holding company of his own, SpringHill Entertainment. That vehicle has spawned movies, game shows, and talk shows and is about to launch a men’s grooming line called “The Shop.”

Serena Williams, $290 million. The GOAT of women’s tennis is a prolific venture investor. As an angel, Williams backed Zipline, Masterclass, Daily Harvest, and many others. A dedicated $111 million fund, Serena Ventures, debuted in 2022 and has started capitalizing a host of other startups. Alongside her venture activities, Williams has launched two fashion brands and taken minority positions in the Miami Dolphins and UFC. Forbes estimated her 2023 net worth at $290 million.  

Maria Sharapova, $220 million. The retired tennis star has grown her confectionary brand, Sugarpova, into a viable business, earning a reported $20 million annual revenue. Sharapova capitalized the business herself and still owns 100% of it. She has also invested in Public.com, Supergoop, and MoonPay. Her net worth is pegged at $220 million. 

By investing savvily, especially in sports franchises or mass-market consumer brands, athletes can earn far more in retirement than they ever did as athletes. 

Social media has eaten traditional media and changed the equation, allowing talent to talk to an audience intimately, repeatedly, and on a global scale. Traditional gatekeepers no longer have the same leverage – people have greater control than ever over their story and its distribution.

Technology has reduced startup costs, removed complexity, and increased upside. It is cheaper than ever to start a company. It is also, easier, to launch an e-commerce brand, you can use a platform like Shopify. If you want to test out a new media property, you can use tools like Anchor to launch a podcast and YouTube to distribute videos.

See You at the Top 

Sunday, January 28, 2024

Learn with Speed

The greater our knowledge increases, the greater our ignorance unfolds........President Kennedy of USA (Rice University 1962)

Very few vocations require as much rapid learning as an innovative startup leader, a role that requires flexible intelligence and constant adaptation. The leader of an early-stage company might split their time between decoding governmental regulations, hiring staff, wooing investors, scanning deal documents, reviewing code, reviewing design, running a marketing campaign, and making sales. It is a learning treadmill that doesn’t stop. Though some functions are absorbed as a business grows, an innovative company will always find a new frontier to conquer.

The most important thing you need to do as a CEO is learn faster than the pace at which your company is growing. you shouldn’t think about learning as simply absorbing information and then copying what others are doing, but understanding the HOW and the WHY in a way that makes sense for your company.

Leadership skills are necessary in order for you to be successful with the company. Thankfully, leadership is a learned skill.

  • Being a leader doesn’t mean you have to manage 100+ people.
  • Being a leader doesn’t mean you have to be a “smooth talker.”

Being a leader often means “listening more than speaking.”: That means listening to market trends, customer feedback, and ideas from your team. 

Being a leader often means Patience: Though there’s value in speed, but most of the best things in life take time to reveal themselves. They take time to unfold and play out. That process often makes the outcome richer, the learnings deeper, and the rewards much better. And sometimes, sitting in discomfort along that path is essential to finding the truth. 

Bringing people along professionally requires patience, building a company requires patience, and often finding answers requires patience. 

Being a leader often means Reading: The key nugget for a leader is to treat every resource – conversations, books, blog posts, etc. – as one single data point that will feed your own strategy.

Here are a few good books recommended by Mathilde Collin, CEO and Co-founder at Front.

- The Effective Executive. 

- High Output Management. 

- The Hard Things About Hard Things.

Finally, being a leader means Networking: Find coaches, mentors and create a group of peers (similar-stage companies) you can learn from and then hire people better than yourself.

See You at The Top