One of my favorite bits of career advice is from Frank Slootman who says you should be careful which elevator you step into.
Some elevators go up, some go down, and some donât move.
Heâs touching on a few things we talk about here. 1) Systems are powerful. 2) Focus on what you can control.
You can be an absolute baller, but if you join a company thatâs in a bad market or with ineffective leadership, youâre not going to do very well.
Conversely, you can be average to poor, but if the company is accelerating like a rocket ship, youâre going to benefit from that growth.
One way to assess how elevators move is to look at stock price. I got curious about different elevators so looked at the past five years of performance for different companies.
The S&P500 average growth was 90% – almost double – in the past five years.
What do you think itâs like being an employee for the past five years at each of these companies? What are the performance and compensation conversations like?
Is the mood one of scarcity or abundance?
Hertz probably has some amazing people. Nvidia probably has some average people. The average person at Nvidia is exposed to a lot more financial upside and career opportunities than the amazing Hertz person, by virtue of which elevator they choose to get on.
So, itâs worth considering; which direction is the elevator youâre on going, and how fast?
Kevin
A Quote
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I sleep well at night because Iâm at peace with myself and my soul. I wake up in the morning and look at myself in the mirror and really love the woman who looks back at me. Sheâs flawed AF but knows without question that she is better than who she used to be. And she knows her mistakes do not define her; her lessons do.
â Luvvie Ajayi Jones in “Professional Troublemaker”
Three Things
1 – đ± Reelgood – On Sunday night, when Iâm trying to figure out which movie streaming service might have âThe Hudsucker Proxyâ available so I can continue my kidsâ Coen brothers education, I have to search on each individual service. Itâs 2024; what am I doing?! I found Reelgood, which solves this problem. Search movies, keep track of a watch list. It makes navigating multiple services much easier.
2 – đ¶ Austin Pets Alive! – If youâre looking for a new dog, consider getting them from a shelter. Weâve rescued our last four dogs, the most recent two from APA! here in Austin. There are lots of sweet dogs looking for good homes (see Goofy and Itty Bitty Pitty Committee). My family tries to get me to say yes to a third dog by flipping through the available dogs – some of whom have been in a shelter for years đ. Iâm not ready for a third, but maybe you have room?
3 – đ° Restoration of French ChĂąteau de Purnon – Check out this video walking through the restoration of a crumbling French ChĂąteau. The estate has 20 buildings on 56 acres. They purchased it for roughy $0.8M USD! The first stage of work, fixing the exterior, will cost $3.1M. They get financial help from the government and private grants. Theyâre four years in and itâs still not finished. Check out this Q&A video if you want to go down the Purnon rabbit hole.
Deeper Dive on Seeing the World as It Is
Thereâs a natural human tendency to see the world as we wish it to be, as opposed to seeing the world as it is.
It seems so simple, to see the world as it is. It implies passivity. It implies the natural state of things.
Itâs actually really difficult to see the world as it is.
Our brains put so much distortion around our view. Seeing reality is not passive. Itâs a skill we have to develop, and actively engage with.
Today Iâll share thoughts on why seeing reality is so important and how to get better at it.
âOne should recognize reality even when one doesnât like itâindeed, especially when one doesnât like it.â
You are many things. You might be a leader, a parent, a spouse or partner. A singer. A chef. A mentor.
No matter your identity, youâre living in the real-life world, and interacting with the people in it. You have to drive action within that world and with those people in order to get anything accomplished.
Before sharing how to get better at seeing reality, let me share why itâs important.
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Creating Enduring Outcomes
If you want a solution to stand the test of time, you need to build it for the world as it is, not as you wish it to be.
This principle was used when Americaâs founding fathers were designing the United States system of government.
George Washington, in writing a letter to John Jay, who was the secretary for foreign affairs in the Articles of Confederation government – one that wasnât quite working – said:
âwe have probably had too good an opinion of human nature in forming our confederation. . . . We must take human nature as we find it. Perfection falls not to the share of mortals.â
They were aware that humans were not perfect, and therefore should not design a government around the assumption that they were.
Similarly, you need to design solutions for the world as it is.
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Assessment Drives Action
Actions come from your assessments. If your assessments are off, your actions will be off. The world wonât contort its reality to meet your mythology; itâll stay as it is and your actions will be ineffective.
So if you care about driving actual outcomes, youâll care about seeing reality as it is, not what you wish it to be.
If you can accept the world as it is, youâll find it to be a much less stressful place.
As an example, Iâve seen this with complex transformation programs. Leadership wants a certain outcome, but they understaff the team, and the team is missing key skills.
The team gets stressed – reinforced by leaders who donât see reality – because theyâre being asked to deliver on something that literally cannot be achieved! When youâre being judged on something outside your control, it creates stress.
Once you accept reality, the stress falls away and you can focus on action.
You can focus on bringing in the skills and staff members you need.
Or you can escalate a decision to change the scope down to what the team can achieve.
Or you can get to work achieving the utmost possible with the time, staff, and skills available to you (you may have heard the saying, âgo to war with the army you haveâ).
While you canât force everyone to see reality, you can be confident and less stressed because youâre doing the right thing given the circumstance.
âThereâs an equanimity that results from understanding risk and coming to terms with the odds youâre facing. And thereâs a refreshing lightness in the feeling of being free to explore ideas and follow the evidence wherever it leads, unconstrained by what youâre ‘supposed toâ think.'”
Ghost teammates don’t count when it comes to getting the job done.
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Unlocks Real Growth
Ignoring reality can block your own growth.
How can you work on your skills and behaviors if you donât accept what they really are?
You can ignore feedback and pretend like youâre not having a negative impact on someone, but that wonât make it true.
If your view of self is disconnected from reality youâre going to continue suffering from those shortcomings because you wonât allow the feedback in.
If you can see yourself as you really are – without judgment – then you can get to work on the things thatâll truly unlock your growth.
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What gets in the way of seeing reality?
Mostly itâs your ego that gets in the way đ That pesky ego tries to protect your sense of self by not letting certain information in.
Since the ego canât change reality, the only tool available to it is to distort the way you see the world.
The ego does this through a series of cognitive biases. It hijacks your low effort system 1 thinking mechanisms, preventing thoughts from being interrogated by the more reasoned system 2 thinking.
âLeaders should never be satisfied. They must always strive to improve, and they must build that mind-set into the team. They must face the facts through a realistic, brutally honest assessment of themselves and their teamâs performance. Identifying weaknesses, good leaders seek to strengthen them and come up with a plan to overcome challenges.â
Iâve got some suggestions for how to improve this skill. They center around the dual themes of receiving information or removing distortion.
Improve Metacognition and Remove Biases
âMetacognition is the ability to think about your thinking. Since cognitive biases operate in a subconscious level, youâll have to go into metacognition to be able to notice where theyâre working on you.
Charlie Munger actually advises that you have a list of cognitive biases present that you run down. I havenât yet done this myself, but itâs a good idea! You can ask yourself, for example, âIs social proof affecting my thinking?â âIs this confirmation bias?â
“Yeah, one sec. I just need to run through this list of cognitive biases before I order.”
â
Cultivate Honest Mirrors and Create Psychological Safety
You need people to tell you whatâs actually going on. They will not do this if you shut down the messages.
You need to encourage people to share bad news. You need to encourage people to be honest with you.
You need to create an environment of psychological safety so that theyâre willing to do that. (by the way, weâll continue that psychological safety series soon!)
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Practice Active Listening
Hearing is passive, and easy.
Listening – really listening – is an active task and much more difficult.
If youâre not really listening, youâre not getting all the information you could from the other party. This hinders your map of reality.
What Iâve found helpful in active listening is to listen with the intent that youâll summarize what the person said back to them.
Try it. Itâs hard!
When you do this well, if youâre like me, youâll realize how little active listening youâve really been doing. đ€Ł
While actively listening you wonât be thinking your own thoughts; youâll be too engaged in paying close attention to what the other person is saying. Engaging in this behavior gives you much more accurate information about the world and people in it.
Somewhere between no effort and this guy is the sweet spot for active listening.
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Get Data
Listen for your assumptions and the assumptions of others – then challenge them.
Ask, âis it true?â Then get the data to support or refute your assumption.
This happened with a friend recently. Theyâre looking to buy a business and were told that itâs a good business because the customers are sticky.
Great! It might even be true! But rather than take someoneâs word for it, get the churn data. How sticky are the customers?
See the world as it is, not as someone tells you it is.
Having sticky customers is a good thing.
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Call to Action
This week work on taking off your âreality distortion glassesâ to see the world more as it is.
Do that by engaging in any of the practices suggested above: – Think about your thinking. What cognitive biases are at play? – Encourage people to give you honest assessments and information – Practice active listening – Get data!
Let me know how things go this week! Let me know how it goes by emailing me at heykev@kevinnoble.xyz.
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