[Script Info]
Title: 
[Events]
Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text
Dialogue: 0,0:00:00.00,0:00:21.07,Default,,0000,0000,0000,,[Applause]
Dialogue: 0,0:00:23.78,0:00:28.02,Default,,0000,0000,0000,,So, I'm embarrassed that I have a career.
Dialogue: 0,0:00:28.02,0:00:31.92,Default,,0000,0000,0000,,I talk about things like trust and
Dialogue: 0,0:00:31.92,0:00:34.23,Default,,0000,0000,0000,,cooperation, and there should be no
Dialogue: 0,0:00:34.23,0:00:37.41,Default,,0000,0000,0000,,demand for my work. But the fact of the
Dialogue: 0,0:00:37.41,0:00:39.54,Default,,0000,0000,0000,,matter is, there is demand for my work,
Dialogue: 0,0:00:39.54,0:00:41.21,Default,,0000,0000,0000,,which means that there's an opportunity.
Dialogue: 0,0:00:41.21,0:00:44.25,Default,,0000,0000,0000,,It means that trust and cooperation are
Dialogue: 0,0:00:44.25,0:00:46.65,Default,,0000,0000,0000,,not yet standard in our organizations,
Dialogue: 0,0:00:46.65,0:00:48.18,Default,,0000,0000,0000,,and yet they should be, and we know that,
Dialogue: 0,0:00:48.18,0:00:49.77,Default,,0000,0000,0000,,which is why we're looking for ways to
Dialogue: 0,0:00:49.77,0:00:52.76,Default,,0000,0000,0000,,bring those things to our organizations.
Dialogue: 0,0:00:52.76,0:00:54.57,Default,,0000,0000,0000,,So, I thought I would do something a
Dialogue: 0,0:00:54.57,0:00:56.34,Default,,0000,0000,0000,,little different today. You know, when
Dialogue: 0,0:00:56.34,0:00:58.65,Default,,0000,0000,0000,,you're speaking to tens of thousands of
Dialogue: 0,0:00:58.65,0:01:00.39,Default,,0000,0000,0000,,people and you have the opportunity to
Dialogue: 0,0:01:00.39,0:01:02.55,Default,,0000,0000,0000,,share a message, of course, most rational
Dialogue: 0,0:01:02.55,0:01:03.99,Default,,0000,0000,0000,,people would say, "Let's go with something
Dialogue: 0,0:01:03.99,0:01:06.06,Default,,0000,0000,0000,,I've talked about lots of times and I'm
Dialogue: 0,0:01:06.06,0:01:10.14,Default,,0000,0000,0000,,really good at," but I'm not normal, so I'm
Dialogue: 0,0:01:10.14,0:01:12.24,Default,,0000,0000,0000,,going to do something completely new, and I
Dialogue: 0,0:01:12.24,0:01:15.51,Default,,0000,0000,0000,,hope this works out. There are two things
Dialogue: 0,0:01:15.51,0:01:16.92,Default,,0000,0000,0000,,that I think that great leaders need to
Dialogue: 0,0:01:16.92,0:01:20.28,Default,,0000,0000,0000,,have: empathy and perspective. And I think
Dialogue: 0,0:01:20.28,0:01:21.72,Default,,0000,0000,0000,,these things are very often forgotten.
Dialogue: 0,0:01:21.72,0:01:24.36,Default,,0000,0000,0000,,Leaders are so often so concerned about
Dialogue: 0,0:01:24.36,0:01:26.10,Default,,0000,0000,0000,,their status or their position in an
Dialogue: 0,0:01:26.10,0:01:27.54,Default,,0000,0000,0000,,organization they actually forget their
Dialogue: 0,0:01:27.54,0:01:30.57,Default,,0000,0000,0000,,real job. And the real job of a leader is
Dialogue: 0,0:01:30.57,0:01:33.03,Default,,0000,0000,0000,,not about being in charge, it's about
Dialogue: 0,0:01:33.03,0:01:36.39,Default,,0000,0000,0000,,taking care of those in our charge. And I
Dialogue: 0,0:01:36.39,0:01:38.13,Default,,0000,0000,0000,,don't think people realize this, and I
Dialogue: 0,0:01:38.13,0:01:40.20,Default,,0000,0000,0000,,don't think people train for this. When
Dialogue: 0,0:01:40.20,0:01:43.05,Default,,0000,0000,0000,,we're junior, our only responsibility is
Dialogue: 0,0:01:43.05,0:01:44.85,Default,,0000,0000,0000,,to be good at our jobs. That's all we
Dialogue: 0,0:01:44.85,0:01:46.86,Default,,0000,0000,0000,,really have to do. And some people
Dialogue: 0,0:01:46.86,0:01:49.40,Default,,0000,0000,0000,,actually go get advanced educations
Dialogue: 0,0:01:49.40,0:01:51.54,Default,,0000,0000,0000,,so that they can be really good at their
Dialogue: 0,0:01:51.54,0:01:53.58,Default,,0000,0000,0000,,jobs--accountants or whatever. Right? And
Dialogue: 0,0:01:53.58,0:01:55.98,Default,,0000,0000,0000,,you show up, and you work hard, and the
Dialogue: 0,0:01:55.98,0:01:58.41,Default,,0000,0000,0000,,company will give us tons and tons of
Dialogue: 0,0:01:58.41,0:02:00.63,Default,,0000,0000,0000,,training on how to do our jobs. They'll
Dialogue: 0,0:02:00.63,0:02:02.25,Default,,0000,0000,0000,,show us how to use the software. They'll
Dialogue: 0,0:02:02.25,0:02:04.17,Default,,0000,0000,0000,,send us away for a few days to get
Dialogue: 0,0:02:04.17,0:02:06.24,Default,,0000,0000,0000,,trained in whatever it is that we're
Dialogue: 0,0:02:06.24,0:02:07.77,Default,,0000,0000,0000,,doing for the company. And then they
Dialogue: 0,0:02:07.77,0:02:09.99,Default,,0000,0000,0000,,expect us to go be good at our jobs. And
Dialogue: 0,0:02:09.99,0:02:11.85,Default,,0000,0000,0000,,that's what we do, we work very hard. And
Dialogue: 0,0:02:11.85,0:02:15.93,Default,,0000,0000,0000,,if you're good at your job, they'll
Dialogue: 0,0:02:15.93,0:02:19.65,Default,,0000,0000,0000,,promote you. And at some point, you'll get
Dialogue: 0,0:02:19.65,0:02:21.12,Default,,0000,0000,0000,,promoted to position where we're now
Dialogue: 0,0:02:21.12,0:02:22.71,Default,,0000,0000,0000,,responsible for the people who do the
Dialogue: 0,0:02:22.71,0:02:25.23,Default,,0000,0000,0000,,job we used to do, but nobody shows us
Dialogue: 0,0:02:25.23,0:02:27.33,Default,,0000,0000,0000,,how to do that. And that's why we get
Dialogue: 0,0:02:27.33,0:02:29.49,Default,,0000,0000,0000,,managers and not leaders. Because the
Dialogue: 0,0:02:29.49,0:02:30.41,Default,,0000,0000,0000,,reason our managers are
Dialogue: 0,0:02:30.41,0:02:31.76,Default,,0000,0000,0000,,micromanaging us is because they
Dialogue: 0,0:02:31.76,0:02:33.86,Default,,0000,0000,0000,,actually do know how to do the job
Dialogue: 0,0:02:33.86,0:02:35.51,Default,,0000,0000,0000,,better than us. That's what got them
Dialogue: 0,0:02:35.51,0:02:39.11,Default,,0000,0000,0000,,promoted. Really, what we have to do is go
Dialogue: 0,0:02:39.11,0:02:41.15,Default,,0000,0000,0000,,through a transition. Some people make it
Dialogue: 0,0:02:41.15,0:02:43.13,Default,,0000,0000,0000,,quickly, some people make it slowly, and
Dialogue: 0,0:02:43.13,0:02:44.39,Default,,0000,0000,0000,,unfortunately, some people will never
Dialogue: 0,0:02:44.39,0:02:46.67,Default,,0000,0000,0000,,make that transition at all. Which is we
Dialogue: 0,0:02:46.67,0:02:48.11,Default,,0000,0000,0000,,have to go this through this transition
Dialogue: 0,0:02:48.11,0:02:50.12,Default,,0000,0000,0000,,of being responsible for the job and
Dialogue: 0,0:02:50.12,0:02:51.95,Default,,0000,0000,0000,,then turning it to somebody who's now
Dialogue: 0,0:02:51.95,0:02:53.93,Default,,0000,0000,0000,,responsible for the people who are
Dialogue: 0,0:02:53.93,0:02:56.18,Default,,0000,0000,0000,,responsible for the job. And as I said
Dialogue: 0,0:02:56.18,0:02:57.68,Default,,0000,0000,0000,,before, one of the great things that is
Dialogue: 0,0:02:57.68,0:03:00.05,Default,,0000,0000,0000,,lacking in most of our companies is that
Dialogue: 0,0:03:00.05,0:03:03.64,Default,,0000,0000,0000,,they are not teaching us how to lead. And
Dialogue: 0,0:03:03.64,0:03:06.98,Default,,0000,0000,0000,,leadership is a skill like any other. It is
Dialogue: 0,0:03:06.98,0:03:10.16,Default,,0000,0000,0000,,a practicable, learnable skill. And it is
Dialogue: 0,0:03:10.16,0:03:11.72,Default,,0000,0000,0000,,something that you work on--it's like a
Dialogue: 0,0:03:11.72,0:03:13.69,Default,,0000,0000,0000,,muscle. If you practice it all the days,
Dialogue: 0,0:03:13.69,0:03:15.71,Default,,0000,0000,0000,,you will get good at it, and you will
Dialogue: 0,0:03:15.71,0:03:17.60,Default,,0000,0000,0000,,become a strong leader. If you stop
Dialogue: 0,0:03:17.60,0:03:19.25,Default,,0000,0000,0000,,practicing, you will become a weak leader.
Dialogue: 0,0:03:19.25,0:03:22.76,Default,,0000,0000,0000,,Like parenting, everyone has the capacity
Dialogue: 0,0:03:22.76,0:03:25.91,Default,,0000,0000,0000,,to be a parent. Doesn't mean everybody
Dialogue: 0,0:03:25.91,0:03:28.01,Default,,0000,0000,0000,,wants to be a parent, and doesn't mean
Dialogue: 0,0:03:28.01,0:03:29.59,Default,,0000,0000,0000,,everybody should be a parent.
Dialogue: 0,0:03:29.59,0:03:32.48,Default,,0000,0000,0000,,Leadership is the same. We all have the
Dialogue: 0,0:03:32.48,0:03:35.18,Default,,0000,0000,0000,,capacity to be a leader, doesn't mean
Dialogue: 0,0:03:35.18,0:03:37.01,Default,,0000,0000,0000,,everybody should be a leader, and it
Dialogue: 0,0:03:37.01,0:03:38.33,Default,,0000,0000,0000,,doesn't mean everybody wants to be a
Dialogue: 0,0:03:38.33,0:03:40.85,Default,,0000,0000,0000,,leader. And the reason is because it
Dialogue: 0,0:03:40.85,0:03:44.26,Default,,0000,0000,0000,,comes at great personal sacrifice.
Dialogue: 0,0:03:44.26,0:03:47.09,Default,,0000,0000,0000,,Remember, you're not in charge; you're
Dialogue: 0,0:03:47.09,0:03:49.33,Default,,0000,0000,0000,,responsible for those in your charge.
Dialogue: 0,0:03:49.33,0:03:51.65,Default,,0000,0000,0000,,That means things like when everything
Dialogue: 0,0:03:51.65,0:03:53.18,Default,,0000,0000,0000,,goes right, you have to give away all the
Dialogue: 0,0:03:53.18,0:03:54.80,Default,,0000,0000,0000,,credit. And when everything goes wrong,
Dialogue: 0,0:03:54.80,0:03:56.81,Default,,0000,0000,0000,,you have to take all the responsibility.
Dialogue: 0,0:03:56.81,0:04:01.04,Default,,0000,0000,0000,,That sucks, right? It's things like
Dialogue: 0,0:04:01.04,0:04:03.29,Default,,0000,0000,0000,,staying late to show somebody what to do.
Dialogue: 0,0:04:03.29,0:04:06.11,Default,,0000,0000,0000,,It's things like when something does
Dialogue: 0,0:04:06.11,0:04:08.12,Default,,0000,0000,0000,,actually break, when something goes wrong,
Dialogue: 0,0:04:08.12,0:04:10.13,Default,,0000,0000,0000,,instead of yelling and screaming and
Dialogue: 0,0:04:10.13,0:04:14.33,Default,,0000,0000,0000,,taking over, you say, "Try again." When the
Dialogue: 0,0:04:14.33,0:04:16.04,Default,,0000,0000,0000,,overwhelming pressures are not on them,
Dialogue: 0,0:04:16.04,0:04:19.37,Default,,0000,0000,0000,,the overwhelming pressures are on us. At
Dialogue: 0,0:04:19.37,0:04:21.53,Default,,0000,0000,0000,,the end of the day, great leaders are not
Dialogue: 0,0:04:21.53,0:04:23.06,Default,,0000,0000,0000,,responsible for the job, they're
Dialogue: 0,0:04:23.06,0:04:24.23,Default,,0000,0000,0000,,responsible for the people who are
Dialogue: 0,0:04:24.23,0:04:26.18,Default,,0000,0000,0000,,responsible for the job. They're not even
Dialogue: 0,0:04:26.18,0:04:28.34,Default,,0000,0000,0000,,responsible for the results. I love
Dialogue: 0,0:04:28.34,0:04:30.20,Default,,0000,0000,0000,,talking to CEOs and saying, "What's your
Dialogue: 0,0:04:30.20,0:04:31.82,Default,,0000,0000,0000,,priority?" And they put their hands on
Dialogue: 0,0:04:31.82,0:04:33.38,Default,,0000,0000,0000,,their hips all proud and say, "My priority
Dialogue: 0,0:04:33.38,0:04:35.42,Default,,0000,0000,0000,,is my customer." I'm like, "Really? You haven't talked
Dialogue: 0,0:04:35.42,0:04:37.89,Default,,0000,0000,0000,,to a customer in fifteen years."
Dialogue: 0,0:04:37.89,0:04:39.36,Default,,0000,0000,0000,,[Audience laughing].
Dialogue: 0,0:04:39.36,0:04:41.95,Default,,0000,0000,0000,,There's no CEO on the planet responsible
Dialogue: 0,0:04:41.95,0:04:43.54,Default,,0000,0000,0000,,for the customer. They're just not.
Dialogue: 0,0:04:43.54,0:04:45.97,Default,,0000,0000,0000,,They're responsible for the people who are
Dialogue: 0,0:04:45.97,0:04:47.68,Default,,0000,0000,0000,,responsible for the people who are
Dialogue: 0,0:04:47.68,0:04:49.78,Default,,0000,0000,0000,,responsible for the customer. I'll tell
Dialogue: 0,0:04:49.78,0:04:51.73,Default,,0000,0000,0000,,you a true story. A few months ago, I
Dialogue: 0,0:04:51.73,0:04:55.72,Default,,0000,0000,0000,,stayed at the Four Seasons in Las Vegas.
Dialogue: 0,0:04:55.72,0:05:00.04,Default,,0000,0000,0000,,It is a wonderful hotel. And the reason
Dialogue: 0,0:05:00.04,0:05:01.54,Default,,0000,0000,0000,,it's a wonderful hotel is not because of
Dialogue: 0,0:05:01.54,0:05:04.57,Default,,0000,0000,0000,,the fancy beds. Any hotel can go and buy
Dialogue: 0,0:05:04.57,0:05:05.92,Default,,0000,0000,0000,,a fancy bed.
Dialogue: 0,0:05:05.92,0:05:07.96,Default,,0000,0000,0000,,The reason it's a wonderful hotel is
Dialogue: 0,0:05:07.96,0:05:09.46,Default,,0000,0000,0000,,because of the people who work there.
Dialogue: 0,0:05:09.46,0:05:11.32,Default,,0000,0000,0000,,If you walk past somebody at the Four
Dialogue: 0,0:05:11.32,0:05:12.79,Default,,0000,0000,0000,,Seasons and they say hello to
Dialogue: 0,0:05:12.79,0:05:14.53,Default,,0000,0000,0000,,you, you get the feeling that they
Dialogue: 0,0:05:14.53,0:05:16.48,Default,,0000,0000,0000,,actually wanted to say hello to you. It's
Dialogue: 0,0:05:16.48,0:05:17.71,Default,,0000,0000,0000,,not that somebody told them, "You
Dialogue: 0,0:05:17.71,0:05:19.09,Default,,0000,0000,0000,,have to say hello to all the customers,
Dialogue: 0,0:05:19.09,0:05:20.74,Default,,0000,0000,0000,,say hello to all the guests." Right? You
Dialogue: 0,0:05:20.74,0:05:23.68,Default,,0000,0000,0000,,actually feel that they care. Now, in
Dialogue: 0,0:05:23.68,0:05:27.25,Default,,0000,0000,0000,,their lobby, they have a coffee stand. And,
Dialogue: 0,0:05:27.25,0:05:29.29,Default,,0000,0000,0000,,one afternoon, I went to buy a cup of
Dialogue: 0,0:05:29.29,0:05:31.06,Default,,0000,0000,0000,,coffee, and there was a barista by the
Dialogue: 0,0:05:31.06,0:05:33.66,Default,,0000,0000,0000,,name of Noah who was serving me. Noah was
Dialogue: 0,0:05:33.66,0:05:37.78,Default,,0000,0000,0000,,fantastic. He was friendly and fun, and he
Dialogue: 0,0:05:37.78,0:05:39.64,Default,,0000,0000,0000,,was engaging with me, and I had so much
Dialogue: 0,0:05:39.64,0:05:41.05,Default,,0000,0000,0000,,fun buying a cup of coffee, I actually
Dialogue: 0,0:05:41.05,0:05:43.21,Default,,0000,0000,0000,,think I gave a 100% tip. Right?
Dialogue: 0,0:05:43.21,0:05:46.15,Default,,0000,0000,0000,,He was wonderful. So, as is my nature, I
Dialogue: 0,0:05:46.15,0:05:49.39,Default,,0000,0000,0000,,asked Noah, "Do you like your job?" And
Dialogue: 0,0:05:49.39,0:05:51.76,Default,,0000,0000,0000,,without skipping a beat, Noah says, "I love
Dialogue: 0,0:05:51.76,0:05:54.67,Default,,0000,0000,0000,,my job." And so I followed up, I said, "What
Dialogue: 0,0:05:54.67,0:05:56.41,Default,,0000,0000,0000,,is it that the Four Seasons is doing
Dialogue: 0,0:05:56.41,0:05:59.83,Default,,0000,0000,0000,,that would make you say to me, 'I love my
Dialogue: 0,0:05:59.83,0:06:02.53,Default,,0000,0000,0000,,job?'" And without skipping a beat, Noah
Dialogue: 0,0:06:02.53,0:06:04.81,Default,,0000,0000,0000,,said, "Throughout the day, managers will
Dialogue: 0,0:06:04.81,0:06:07.30,Default,,0000,0000,0000,,walk past me and ask me how I'm doing, if
Dialogue: 0,0:06:07.30,0:06:08.92,Default,,0000,0000,0000,,there's anything that I need to do my
Dialogue: 0,0:06:08.92,0:06:11.05,Default,,0000,0000,0000,,job better." He said, "Not just my manager,
Dialogue: 0,0:06:11.05,0:06:14.38,Default,,0000,0000,0000,,any manager." And then he said something
Dialogue: 0,0:06:14.38,0:06:18.46,Default,,0000,0000,0000,,magical. He says, "I also work at Caesar's
Dialogue: 0,0:06:18.46,0:06:20.89,Default,,0000,0000,0000,,Palace." And at Caesar's Palace,
Dialogue: 0,0:06:20.89,0:06:22.30,Default,,0000,0000,0000,,the managers are trying to make sure
Dialogue: 0,0:06:22.30,0:06:23.71,Default,,0000,0000,0000,,we're doing everything right. They catch
Dialogue: 0,0:06:23.71,0:06:26.50,Default,,0000,0000,0000,,us when we do things wrong. He says, "When
Dialogue: 0,0:06:26.50,0:06:28.06,Default,,0000,0000,0000,,I go to work there, I like to keep my
Dialogue: 0,0:06:28.06,0:06:30.25,Default,,0000,0000,0000,,head under the radar and just get
Dialogue: 0,0:06:30.25,0:06:32.52,Default,,0000,0000,0000,,through the day so I can get my paycheck."
Dialogue: 0,0:06:32.52,0:06:35.89,Default,,0000,0000,0000,,He says, "Here at the Four Seasons, I feel
Dialogue: 0,0:06:35.89,0:06:42.01,Default,,0000,0000,0000,,I can be myself." Same person, entirely
Dialogue: 0,0:06:42.01,0:06:44.56,Default,,0000,0000,0000,,different experience from the
Dialogue: 0,0:06:44.56,0:06:46.96,Default,,0000,0000,0000,,customer who will engage with Noah. So, we
Dialogue: 0,0:06:46.96,0:06:48.82,Default,,0000,0000,0000,,in leadership are always criticizing the
Dialogue: 0,0:06:48.82,0:06:50.53,Default,,0000,0000,0000,,people. We're always saying, "We've got to get
Dialogue: 0,0:06:50.53,0:06:51.26,Default,,0000,0000,0000,,the right people on the bus.
Dialogue: 0,0:06:51.26,0:06:53.24,Default,,0000,0000,0000,,I've got to fill my team. I've got to
Dialogue: 0,0:06:53.24,0:06:54.95,Default,,0000,0000,0000,,get the right people." But the reality is,
Dialogue: 0,0:06:54.95,0:06:56.93,Default,,0000,0000,0000,,it's not the people. It's the leadership.
Dialogue: 0,0:06:56.93,0:07:00.65,Default,,0000,0000,0000,,If we create the right environment, we
Dialogue: 0,0:07:00.65,0:07:02.90,Default,,0000,0000,0000,,will get people like Noah at the Four
Dialogue: 0,0:07:02.90,0:07:04.97,Default,,0000,0000,0000,,Seasons. If we create the wrong
Dialogue: 0,0:07:04.97,0:07:06.95,Default,,0000,0000,0000,,environment, we will get people like Noah
Dialogue: 0,0:07:06.95,0:07:10.46,Default,,0000,0000,0000,,at Caesar's Palace. It's not the people.
Dialogue: 0,0:07:10.46,0:07:12.79,Default,,0000,0000,0000,,And yet, we're so quick to hire and fire.
Dialogue: 0,0:07:12.79,0:07:15.71,Default,,0000,0000,0000,,You can't hire and fire your children. If
Dialogue: 0,0:07:15.71,0:07:18.23,Default,,0000,0000,0000,,your kids are struggling, we
Dialogue: 0,0:07:18.23,0:07:20.15,Default,,0000,0000,0000,,don't say, "You got a C at school,
Dialogue: 0,0:07:20.15,0:07:25.10,Default,,0000,0000,0000,,you're up for adoption." So why is it that
Dialogue: 0,0:07:25.10,0:07:26.96,Default,,0000,0000,0000,,when somebody has performance problems
Dialogue: 0,0:07:26.96,0:07:29.24,Default,,0000,0000,0000,,at work, why is it that our instinct is
Dialogue: 0,0:07:29.24,0:07:33.22,Default,,0000,0000,0000,,to say, "You're out?" We do not practice
Dialogue: 0,0:07:33.22,0:07:35.81,Default,,0000,0000,0000,,empathy. What does empathy look like?
Dialogue: 0,0:07:35.81,0:07:37.46,Default,,0000,0000,0000,,Here's the lack of empathy. This is
Dialogue: 0,0:07:37.46,0:07:39.47,Default,,0000,0000,0000,,normal in our business world. You walk
Dialogue: 0,0:07:39.47,0:07:40.88,Default,,0000,0000,0000,,into someone's office, someone walks into
Dialogue: 0,0:07:40.88,0:07:42.62,Default,,0000,0000,0000,,our office and says, "Your numbers have
Dialogue: 0,0:07:42.62,0:07:44.21,Default,,0000,0000,0000,,been down for the third quarter in a row.
Dialogue: 0,0:07:44.21,0:07:46.34,Default,,0000,0000,0000,,You have to pick up your numbers,
Dialogue: 0,0:07:46.34,0:07:48.29,Default,,0000,0000,0000,,otherwise I can't guarantee what the
Dialogue: 0,0:07:48.29,0:07:50.51,Default,,0000,0000,0000,,future will look like." How inspired do you
Dialogue: 0,0:07:50.51,0:07:52.25,Default,,0000,0000,0000,,think that person is to come to work the
Dialogue: 0,0:07:52.25,0:07:54.65,Default,,0000,0000,0000,,next day? Here's what empathy looks like.
Dialogue: 0,0:07:54.65,0:07:56.54,Default,,0000,0000,0000,,You walk into someone's office, someone
Dialogue: 0,0:07:56.54,0:07:57.68,Default,,0000,0000,0000,,walks into your office and says, "Your
Dialogue: 0,0:07:57.68,0:07:59.51,Default,,0000,0000,0000,,numbers are down for the third quarter
Dialogue: 0,0:07:59.51,0:08:03.05,Default,,0000,0000,0000,,in a row. Are you okay? I'm worried about
Dialogue: 0,0:08:03.05,0:08:03.62,Default,,0000,0000,0000,,you.
Dialogue: 0,0:08:03.62,0:08:06.86,Default,,0000,0000,0000,,What's going on?" We all have performance
Dialogue: 0,0:08:06.86,0:08:08.90,Default,,0000,0000,0000,,issues. Maybe someone's kid is sick, maybe
Dialogue: 0,0:08:08.90,0:08:09.95,Default,,0000,0000,0000,,they're having problems in their
Dialogue: 0,0:08:09.95,0:08:11.78,Default,,0000,0000,0000,,marriage, maybe one of their parents is
Dialogue: 0,0:08:11.78,0:08:14.00,Default,,0000,0000,0000,,dying. We don't know what's going on in
Dialogue: 0,0:08:14.00,0:08:16.07,Default,,0000,0000,0000,,their lives. And of course, it will affect
Dialogue: 0,0:08:16.07,0:08:18.65,Default,,0000,0000,0000,,performance at work. Empathy is being
Dialogue: 0,0:08:18.65,0:08:21.05,Default,,0000,0000,0000,,concerned about the human being, not just
Dialogue: 0,0:08:21.05,0:08:25.25,Default,,0000,0000,0000,,their output. We have, for some reason, our
Dialogue: 0,0:08:25.25,0:08:28.07,Default,,0000,0000,0000,,work world has changed in the past twenty
Dialogue: 0,0:08:28.07,0:08:31.31,Default,,0000,0000,0000,,and thirty years. We are suffering the side
Dialogue: 0,0:08:31.31,0:08:34.31,Default,,0000,0000,0000,,effects of business theories left over
Dialogue: 0,0:08:34.31,0:08:37.58,Default,,0000,0000,0000,,from the '80s and '90s. And they are bad
Dialogue: 0,0:08:37.58,0:08:41.80,Default,,0000,0000,0000,,for people, and they are bad for business.
Dialogue: 0,0:08:41.80,0:08:45.11,Default,,0000,0000,0000,,Let me give you an example. The concept
Dialogue: 0,0:08:45.11,0:08:48.29,Default,,0000,0000,0000,,of shareholder supremacy was a theory
Dialogue: 0,0:08:48.29,0:08:52.67,Default,,0000,0000,0000,,proposed in the late 1970s. It was
Dialogue: 0,0:08:52.67,0:08:56.54,Default,,0000,0000,0000,,popularized in the '80s and '90s. It is now
Dialogue: 0,0:08:56.54,0:08:59.68,Default,,0000,0000,0000,,standard form today. You talk to any
Dialogue: 0,0:08:59.68,0:09:01.91,Default,,0000,0000,0000,,public company, and you ask them their
Dialogue: 0,0:09:01.91,0:09:02.99,Default,,0000,0000,0000,,priority, and they say, "Maximize
Dialogue: 0,0:09:02.99,0:09:04.05,Default,,0000,0000,0000,,shareholder value."
Dialogue: 0,0:09:04.05,0:09:07.15,Default,,0000,0000,0000,,Really? That's like a coach prioritizing
Dialogue: 0,0:09:07.15,0:09:09.13,Default,,0000,0000,0000,,the needs of the fans over the needs of
Dialogue: 0,0:09:09.13,0:09:10.87,Default,,0000,0000,0000,,the players. How are you going to build a
Dialogue: 0,0:09:10.87,0:09:13.09,Default,,0000,0000,0000,,winning team with that model? But that's
Dialogue: 0,0:09:13.09,0:09:14.86,Default,,0000,0000,0000,,normal today. We don't even perceive it
Dialogue: 0,0:09:14.86,0:09:16.87,Default,,0000,0000,0000,,as broken or damaged or wrong or
Dialogue: 0,0:09:16.87,0:09:20.41,Default,,0000,0000,0000,,outdated. Remember, the '80s and '90s were
Dialogue: 0,0:09:20.41,0:09:23.98,Default,,0000,0000,0000,,boom years with relative peace and a
Dialogue: 0,0:09:23.98,0:09:25.96,Default,,0000,0000,0000,,kinder, gentler cold war. Nobody was
Dialogue: 0,0:09:25.96,0:09:28.03,Default,,0000,0000,0000,,practicing hiding under their desks in
Dialogue: 0,0:09:28.03,0:09:31.57,Default,,0000,0000,0000,,school anymore. We are no longer in those
Dialogue: 0,0:09:31.57,0:09:34.21,Default,,0000,0000,0000,,times. These are no longer boom years.
Dialogue: 0,0:09:34.21,0:09:36.85,Default,,0000,0000,0000,,These are no longer peaceful times, and
Dialogue: 0,0:09:36.85,0:09:39.57,Default,,0000,0000,0000,,those models cannot work today.
Dialogue: 0,0:09:39.57,0:09:45.37,Default,,0000,0000,0000,,Here's another one: mass layoffs--using
Dialogue: 0,0:09:45.37,0:09:47.86,Default,,0000,0000,0000,,someone's livelihood to balance the
Dialogue: 0,0:09:47.86,0:09:51.01,Default,,0000,0000,0000,,books. Right? It's so normal in America
Dialogue: 0,0:09:51.01,0:09:53.32,Default,,0000,0000,0000,,today that we don't even understand how
Dialogue: 0,0:09:53.32,0:09:55.63,Default,,0000,0000,0000,,broken and how damaging it is, not only
Dialogue: 0,0:09:55.63,0:09:58.09,Default,,0000,0000,0000,,to human beings but to business. You know,
Dialogue: 0,0:09:58.09,0:09:59.41,Default,,0000,0000,0000,,companies talk about how they want to
Dialogue: 0,0:09:59.41,0:10:00.61,Default,,0000,0000,0000,,build trust and cooperation, and then they
Dialogue: 0,0:10:00.61,0:10:02.14,Default,,0000,0000,0000,,announce a round of layoffs. Do you know
Dialogue: 0,0:10:02.14,0:10:04.30,Default,,0000,0000,0000,,the quickest way to destroy trust and
Dialogue: 0,0:10:04.30,0:10:06.01,Default,,0000,0000,0000,,destroy cooperation in a business--
Dialogue: 0,0:10:06.01,0:10:09.40,Default,,0000,0000,0000,,literally in one day? Lay people off. And
Dialogue: 0,0:10:09.40,0:10:12.19,Default,,0000,0000,0000,,everyone gets scared. Right? Can you
Dialogue: 0,0:10:12.19,0:10:14.20,Default,,0000,0000,0000,,imagine sending someone home to say,
Dialogue: 0,0:10:14.20,0:10:15.85,Default,,0000,0000,0000,,"Honey, I can no longer provide for our
Dialogue: 0,0:10:15.85,0:10:17.44,Default,,0000,0000,0000,,family because the company missed its
Dialogue: 0,0:10:17.44,0:10:20.77,Default,,0000,0000,0000,,arbitrary projections this year?" And
Dialogue: 0,0:10:20.77,0:10:22.15,Default,,0000,0000,0000,,forget about the people who lost their
Dialogue: 0,0:10:22.15,0:10:24.16,Default,,0000,0000,0000,,jobs--think about the people who kept
Dialogue: 0,0:10:24.16,0:10:26.29,Default,,0000,0000,0000,,their jobs. Because every single decision
Dialogue: 0,0:10:26.29,0:10:27.79,Default,,0000,0000,0000,,a company makes is a piece of
Dialogue: 0,0:10:27.79,0:10:29.83,Default,,0000,0000,0000,,communication. And the company
Dialogue: 0,0:10:29.83,0:10:31.75,Default,,0000,0000,0000,,has just communicated to
Dialogue: 0,0:10:31.75,0:10:34.35,Default,,0000,0000,0000,,everybody else: This is not a meritocracy.
Dialogue: 0,0:10:34.35,0:10:37.06,Default,,0000,0000,0000,,We don't care how hard you work or how
Dialogue: 0,0:10:37.06,0:10:39.55,Default,,0000,0000,0000,,long you've worked here. If we miss our
Dialogue: 0,0:10:39.55,0:10:41.20,Default,,0000,0000,0000,,numbers and you happen to fall on the
Dialogue: 0,0:10:41.20,0:10:44.29,Default,,0000,0000,0000,,wrong side of the spreadsheet, I'm sorry,
Dialogue: 0,0:10:44.29,0:10:46.42,Default,,0000,0000,0000,,we cannot guarantee employment. In other
Dialogue: 0,0:10:46.42,0:10:48.49,Default,,0000,0000,0000,,words, we come to work every day afraid.
Dialogue: 0,0:10:48.49,0:10:51.58,Default,,0000,0000,0000,,And we're asking our youngest generation
Dialogue: 0,0:10:51.58,0:10:53.47,Default,,0000,0000,0000,,to work in environments where how would
Dialogue: 0,0:10:53.47,0:10:56.11,Default,,0000,0000,0000,,any of us ever stand up and admit, "I made
Dialogue: 0,0:10:56.11,0:10:58.48,Default,,0000,0000,0000,,a mistake." We're constantly being told,
Dialogue: 0,0:10:58.48,0:11:00.31,Default,,0000,0000,0000,,"You have to be vulnerable. Leaders are
Dialogue: 0,0:11:00.31,0:11:02.08,Default,,0000,0000,0000,,vulnerable." What does that even mean? It
Dialogue: 0,0:11:02.08,0:11:03.95,Default,,0000,0000,0000,,doesn't mean you walk around crying, "I'm
Dialogue: 0,0:11:03.95,0:11:07.82,Default,,0000,0000,0000,,vulnerable," right? No. What vulnerability
Dialogue: 0,0:11:07.82,0:11:09.29,Default,,0000,0000,0000,,means is you create an environment in
Dialogue: 0,0:11:09.29,0:11:11.81,Default,,0000,0000,0000,,which someone feels safe enough to raise
Dialogue: 0,0:11:11.81,0:11:14.12,Default,,0000,0000,0000,,their hand and say, "I don't know what
Dialogue: 0,0:11:14.12,0:11:14.84,Default,,0000,0000,0000,,I'm doing.
Dialogue: 0,0:11:14.84,0:11:17.03,Default,,0000,0000,0000,,You've given me a job, and I haven't been
Dialogue: 0,0:11:17.03,0:11:20.42,Default,,0000,0000,0000,,trained to do it. I need help. I made a
Dialogue: 0,0:11:20.42,0:11:23.93,Default,,0000,0000,0000,,mistake. I screwed something up. I'm
Dialogue: 0,0:11:23.93,0:11:24.71,Default,,0000,0000,0000,,scared.
Dialogue: 0,0:11:24.71,0:11:27.44,Default,,0000,0000,0000,,I'm worried." All of these things no one
Dialogue: 0,0:11:27.44,0:11:29.39,Default,,0000,0000,0000,,would ever admit inside a company
Dialogue: 0,0:11:29.39,0:11:31.31,Default,,0000,0000,0000,,because it puts a target on your head in
Dialogue: 0,0:11:31.31,0:11:33.95,Default,,0000,0000,0000,,case there's another round. And so, we
Dialogue: 0,0:11:33.95,0:11:35.60,Default,,0000,0000,0000,,keep it to ourselves. And how can a
Dialogue: 0,0:11:35.60,0:11:37.76,Default,,0000,0000,0000,,company ever do well if nobody's ever
Dialogue: 0,0:11:37.76,0:11:38.87,Default,,0000,0000,0000,,willing to a,dmit they made a mistake
Dialogue: 0,0:11:38.87,0:11:40.46,Default,,0000,0000,0000,,that they're scared, or they don't know what
Dialogue: 0,0:11:40.46,0:11:42.14,Default,,0000,0000,0000,,they're doing? And so, we've literally
Dialogue: 0,0:11:42.14,0:11:43.73,Default,,0000,0000,0000,,created cultures in which every single
Dialogue: 0,0:11:43.73,0:11:45.32,Default,,0000,0000,0000,,day, everybody comes to work and
Dialogue: 0,0:11:45.32,0:11:49.13,Default,,0000,0000,0000,,lies, hides, and fakes. And we're asking
Dialogue: 0,0:11:49.13,0:11:51.74,Default,,0000,0000,0000,,our youngest generation to work and
Dialogue: 0,0:11:51.74,0:11:54.17,Default,,0000,0000,0000,,succeed and find themselves and build
Dialogue: 0,0:11:54.17,0:11:56.33,Default,,0000,0000,0000,,their confidence and overcome their
Dialogue: 0,0:11:56.33,0:11:58.52,Default,,0000,0000,0000,,addiction to technology and build strong
Dialogue: 0,0:11:58.52,0:12:00.59,Default,,0000,0000,0000,,relationships at work. We're asking to do
Dialogue: 0,0:12:00.59,0:12:01.85,Default,,0000,0000,0000,,this, and these are the environments we've
Dialogue: 0,0:12:01.85,0:12:04.55,Default,,0000,0000,0000,,created. We keep saying to them, "You're
Dialogue: 0,0:12:04.55,0:12:08.68,Default,,0000,0000,0000,,the future leaders. We're the leaders now.
Dialogue: 0,0:12:08.68,0:12:14.66,Default,,0000,0000,0000,,We're in control." What are we doing? This
Dialogue: 0,0:12:14.66,0:12:17.21,Default,,0000,0000,0000,,is what empathy means: it means if
Dialogue: 0,0:12:17.21,0:12:19.52,Default,,0000,0000,0000,,there's an entire generation struggling,
Dialogue: 0,0:12:19.52,0:12:22.58,Default,,0000,0000,0000,,maybe it's not them. It's like, you know,
Dialogue: 0,0:12:22.58,0:12:25.04,Default,,0000,0000,0000,,the only thing that I, that, the common
Dialogue: 0,0:12:25.04,0:12:29.62,Default,,0000,0000,0000,,factor in all my failed relationships? Me.
Dialogue: 0,0:12:29.62,0:12:32.48,Default,,0000,0000,0000,,Same thing. "Well, we just can't get the
Dialogue: 0,0:12:32.48,0:12:33.44,Default,,0000,0000,0000,,right, you know, the right
Dialogue: 0,0:12:33.44,0:12:35.39,Default,,0000,0000,0000,,performance out of our people." Maybe it's
Dialogue: 0,0:12:35.39,0:12:39.56,Default,,0000,0000,0000,,you. Right? It's not a generation. It's not
Dialogue: 0,0:12:39.56,0:12:41.93,Default,,0000,0000,0000,,them. They're not difficult or hard to
Dialogue: 0,0:12:41.93,0:12:44.33,Default,,0000,0000,0000,,understand. They're human beings like the
Dialogue: 0,0:12:44.33,0:12:45.98,Default,,0000,0000,0000,,rest of us, trying to find their way,
Dialogue: 0,0:12:45.98,0:12:48.26,Default,,0000,0000,0000,,trying to work in a place where they
Dialogue: 0,0:12:48.26,0:12:50.75,Default,,0000,0000,0000,,feel that someone cares about them as a
Dialogue: 0,0:12:50.75,0:12:53.84,Default,,0000,0000,0000,,human being. By the way, that's what we
Dialogue: 0,0:12:53.84,0:12:57.11,Default,,0000,0000,0000,,all want. In other words, it's not even
Dialogue: 0,0:12:57.11,0:13:01.04,Default,,0000,0000,0000,,generational. It's all of us. This is the
Dialogue: 0,0:13:01.04,0:13:02.84,Default,,0000,0000,0000,,practice of empathy. That if we're
Dialogue: 0,0:13:02.84,0:13:04.91,Default,,0000,0000,0000,,struggling to communicate to someone, if
Dialogue: 0,0:13:04.91,0:13:06.89,Default,,0000,0000,0000,,we're struggling to help someone be at
Dialogue: 0,0:13:06.89,0:13:09.14,Default,,0000,0000,0000,,their natural best, I'm tired of people
Dialogue: 0,0:13:09.14,0:13:10.61,Default,,0000,0000,0000,,saying to me, "How do I get the best out
Dialogue: 0,0:13:10.61,0:13:12.05,Default,,0000,0000,0000,,of my people?" Really? That's what you want?
Dialogue: 0,0:13:12.05,0:13:13.88,Default,,0000,0000,0000,,They're like a towel, you just wring them? "How can
Dialogue: 0,0:13:13.88,0:13:16.88,Default,,0000,0000,0000,,I get the most out of them?"
Dialogue: 0,0:13:16.88,0:13:18.53,Default,,0000,0000,0000,,No. How do I help my people be at their
Dialogue: 0,0:13:18.53,0:13:21.68,Default,,0000,0000,0000,,natural best? Right? We're not asking
Dialogue: 0,0:13:21.68,0:13:22.76,Default,,0000,0000,0000,,these questions. We're not practicing
Dialogue: 0,0:13:22.76,0:13:23.33,Default,,0000,0000,0000,,empathy.
Dialogue: 0,0:13:23.33,0:13:25.25,Default,,0000,0000,0000,,We have to start by practicing empathy
Dialogue: 0,0:13:25.25,0:13:27.41,Default,,0000,0000,0000,,and relate to what they may be going
Dialogue: 0,0:13:27.41,0:13:29.24,Default,,0000,0000,0000,,through, and it will profoundly change
Dialogue: 0,0:13:29.24,0:13:30.71,Default,,0000,0000,0000,,the decisions we make; it will profoundly
Dialogue: 0,0:13:30.71,0:13:34.30,Default,,0000,0000,0000,,change the way we see the world.
Dialogue: 0,0:13:34.30,0:13:37.19,Default,,0000,0000,0000,,Someone's driving to work, you're driving
Dialogue: 0,0:13:37.19,0:13:39.02,Default,,0000,0000,0000,,to work, and someone wants to cut into
Dialogue: 0,0:13:39.02,0:13:41.18,Default,,0000,0000,0000,,your lane. What do you do? If you pull
Dialogue: 0,0:13:41.18,0:13:44.15,Default,,0000,0000,0000,,your car up, would you let them in? Most
Dialogue: 0,0:13:44.15,0:13:45.68,Default,,0000,0000,0000,,of us pull our cars up and go like this,
Dialogue: 0,0:13:45.68,0:13:49.10,Default,,0000,0000,0000,,"You wait your turn." Now, let's practice
Dialogue: 0,0:13:49.10,0:13:50.60,Default,,0000,0000,0000,,empathy. I don't know, maybe they've been
Dialogue: 0,0:13:50.60,0:13:52.04,Default,,0000,0000,0000,,out of work for six months. Maybe they
Dialogue: 0,0:13:52.04,0:13:53.30,Default,,0000,0000,0000,,had trouble getting the kids out to
Dialogue: 0,0:13:53.30,0:13:54.41,Default,,0000,0000,0000,,school this morning, and now they're
Dialogue: 0,0:13:54.41,0:13:56.18,Default,,0000,0000,0000,,running late for a really important
Dialogue: 0,0:13:56.18,0:13:57.68,Default,,0000,0000,0000,,interview, and they just have to get to
Dialogue: 0,0:13:57.68,0:13:58.91,Default,,0000,0000,0000,,this interview, and they're going to cut
Dialogue: 0,0:13:58.91,0:14:01.58,Default,,0000,0000,0000,,into our lane. Or maybe they're just a
Dialogue: 0,0:14:01.58,0:14:07.07,Default,,0000,0000,0000,,bastard, I don't know. But that's the
Dialogue: 0,0:14:07.07,0:14:11.03,Default,,0000,0000,0000,,point. We don't know. We don't know. And
Dialogue: 0,0:14:11.03,0:14:13.37,Default,,0000,0000,0000,,the practice of empathy will say, "I'll
Dialogue: 0,0:14:13.37,0:14:17.06,Default,,0000,0000,0000,,let them in, and I'll arrive to work one
Dialogue: 0,0:14:17.06,0:14:20.84,Default,,0000,0000,0000,,car length late." Right? We don't always
Dialogue: 0,0:14:20.84,0:14:23.66,Default,,0000,0000,0000,,have to be right. We do always have to be
Dialogue: 0,0:14:23.66,0:14:25.91,Default,,0000,0000,0000,,in charge. We don't have to be the one
Dialogue: 0,0:14:25.91,0:14:27.92,Default,,0000,0000,0000,,who succeeds. It's not about winning or
Dialogue: 0,0:14:27.92,0:14:30.29,Default,,0000,0000,0000,,losing. And that's where I go to the
Dialogue: 0,0:14:30.29,0:14:33.49,Default,,0000,0000,0000,,second point. After empathy comes
Dialogue: 0,0:14:33.49,0:14:36.35,Default,,0000,0000,0000,,perspective, where it's not about winning
Dialogue: 0,0:14:36.35,0:14:41.24,Default,,0000,0000,0000,,or losing. In game theory, there are two
Dialogue: 0,0:14:41.24,0:14:43.34,Default,,0000,0000,0000,,kinds of games. There are finite games
Dialogue: 0,0:14:43.34,0:14:45.89,Default,,0000,0000,0000,,and there are infinite games. And this is
Dialogue: 0,0:14:45.89,0:14:47.23,Default,,0000,0000,0000,,how you're going to change your perspective.
Dialogue: 0,0:14:47.23,0:14:51.11,Default,,0000,0000,0000,,Right? A finite game is defined as known
Dialogue: 0,0:14:51.11,0:14:54.20,Default,,0000,0000,0000,,players, fixed rules, and an agreed-upon
Dialogue: 0,0:14:54.20,0:14:58.16,Default,,0000,0000,0000,,objective. Baseball, for example, we know
Dialogue: 0,0:14:58.16,0:14:59.69,Default,,0000,0000,0000,,the rules, we all agree to the rules, and
Dialogue: 0,0:14:59.69,0:15:01.79,Default,,0000,0000,0000,,whoever has more runs at the end of nine
Dialogue: 0,0:15:01.79,0:15:03.35,Default,,0000,0000,0000,,innings is the winner, and the game is
Dialogue: 0,0:15:03.35,0:15:05.21,Default,,0000,0000,0000,,over. No one ever says, "If we can just
Dialogue: 0,0:15:05.21,0:15:06.68,Default,,0000,0000,0000,,play two more innings, I know we can come
Dialogue: 0,0:15:06.68,0:15:09.47,Default,,0000,0000,0000,,back." Doesn't work that way. The game is
Dialogue: 0,0:15:09.47,0:15:12.56,Default,,0000,0000,0000,,over. Right? That's a finite game. Then you
Dialogue: 0,0:15:12.56,0:15:15.11,Default,,0000,0000,0000,,have an infinite game. Infinite games are
Dialogue: 0,0:15:15.11,0:15:18.80,Default,,0000,0000,0000,,defined as known and unknown players, the
Dialogue: 0,0:15:18.80,0:15:21.71,Default,,0000,0000,0000,,rules are changeable, and the objective
Dialogue: 0,0:15:21.71,0:15:24.17,Default,,0000,0000,0000,,is to keep the game in play, to
Dialogue: 0,0:15:24.17,0:15:26.99,Default,,0000,0000,0000,,perpetuate the game. When you pit a
Dialogue: 0,0:15:26.99,0:15:28.79,Default,,0000,0000,0000,,finite player versus a finite player,
Dialogue: 0,0:15:28.79,0:15:30.92,Default,,0000,0000,0000,,this system is stable.
Dialogue: 0,0:15:30.92,0:15:34.91,Default,,0000,0000,0000,,Baseball is stable. Right? When you pit an
Dialogue: 0,0:15:34.91,0:15:36.71,Default,,0000,0000,0000,,infinite player versus an
Dialogue: 0,0:15:36.71,0:15:38.66,Default,,0000,0000,0000,,infinite player, this system is also
Dialogue: 0,0:15:38.66,0:15:40.76,Default,,0000,0000,0000,,stable, like the Cold War, for example,
Dialogue: 0,0:15:40.76,0:15:42.89,Default,,0000,0000,0000,,because there cannot be a winner and a
Dialogue: 0,0:15:42.89,0:15:44.60,Default,,0000,0000,0000,,loser, there are no winners and losers in
Dialogue: 0,0:15:44.60,0:15:46.85,Default,,0000,0000,0000,,an infinite game. Right? It doesn't exist.
Dialogue: 0,0:15:46.85,0:15:48.65,Default,,0000,0000,0000,,And because there are no winners or
Dialogue: 0,0:15:48.65,0:15:50.21,Default,,0000,0000,0000,,losers, what ends up happening in the
Dialogue: 0,0:15:50.21,0:15:52.64,Default,,0000,0000,0000,,infinite contest is players drop out
Dialogue: 0,0:15:52.64,0:15:54.83,Default,,0000,0000,0000,,when they run out of the will or the
Dialogue: 0,0:15:54.83,0:15:57.23,Default,,0000,0000,0000,,resources to play. But there's no winners
Dialogue: 0,0:15:57.23,0:16:01.22,Default,,0000,0000,0000,,or losers. Problems arise when you pit a
Dialogue: 0,0:16:01.22,0:16:03.11,Default,,0000,0000,0000,,finite player versus an infinite player.
Dialogue: 0,0:16:03.11,0:16:05.00,Default,,0000,0000,0000,,Because the finite player is playing to
Dialogue: 0,0:16:05.00,0:16:07.46,Default,,0000,0000,0000,,win, and an infinite player is to playing
Dialogue: 0,0:16:07.46,0:16:09.83,Default,,0000,0000,0000,,to keep the game going. Right? This is
Dialogue: 0,0:16:09.83,0:16:11.72,Default,,0000,0000,0000,,what happened to us in Vietnam. We were
Dialogue: 0,0:16:11.72,0:16:14.03,Default,,0000,0000,0000,,playing to win, and the Vietnamese were
Dialogue: 0,0:16:14.03,0:16:16.34,Default,,0000,0000,0000,,fighting for their lives. We were the
Dialogue: 0,0:16:16.34,0:16:18.14,Default,,0000,0000,0000,,ones who got stuck in quagmire. This was
Dialogue: 0,0:16:18.14,0:16:20.18,Default,,0000,0000,0000,,the Soviet Union in Afghanistan. They
Dialogue: 0,0:16:20.18,0:16:22.13,Default,,0000,0000,0000,,were trying to beat the mujahideen, and
Dialogue: 0,0:16:22.13,0:16:23.69,Default,,0000,0000,0000,,the mujahideen would fight for as long
Dialogue: 0,0:16:23.69,0:16:27.17,Default,,0000,0000,0000,,as necessary. Quagmire. Now, let's look
Dialogue: 0,0:16:27.17,0:16:31.13,Default,,0000,0000,0000,,at business. The game of business has
Dialogue: 0,0:16:31.13,0:16:32.96,Default,,0000,0000,0000,,preexisted or has existed long before
Dialogue: 0,0:16:32.96,0:16:35.03,Default,,0000,0000,0000,,every single company that exists on this
Dialogue: 0,0:16:35.03,0:16:38.48,Default,,0000,0000,0000,,planet today. And it will outlast every
Dialogue: 0,0:16:38.48,0:16:40.37,Default,,0000,0000,0000,,single company that exists
Dialogue: 0,0:16:40.37,0:16:42.92,Default,,0000,0000,0000,,on this planet today. There's no winning
Dialogue: 0,0:16:42.92,0:16:45.29,Default,,0000,0000,0000,,the game of business. And the reason is
Dialogue: 0,0:16:45.29,0:16:46.82,Default,,0000,0000,0000,,is because we haven't agreed to the
Dialogue: 0,0:16:46.82,0:16:49.85,Default,,0000,0000,0000,,rules. I get such a kick out of this. You
Dialogue: 0,0:16:49.85,0:16:51.47,Default,,0000,0000,0000,,realize how many companies actually
Dialogue: 0,0:16:51.47,0:16:53.72,Default,,0000,0000,0000,,don't know the game they're in. Right?
Dialogue: 0,0:16:53.72,0:16:55.04,Default,,0000,0000,0000,,Listen to the language that the companies
Dialogue: 0,0:16:55.04,0:16:56.75,Default,,0000,0000,0000,,use. "We're trying to beat our competition."
Dialogue: 0,0:16:56.75,0:16:59.30,Default,,0000,0000,0000,,"We're trying to be number one." Did you
Dialogue: 0,0:16:59.30,0:17:00.98,Default,,0000,0000,0000,,know that we were ranked number one? Look
Dialogue: 0,0:17:00.98,0:17:03.34,Default,,0000,0000,0000,,at the listing. Based on what criteria?
Dialogue: 0,0:17:03.34,0:17:05.96,Default,,0000,0000,0000,,Revenues? Profits? Market share? Square
Dialogue: 0,0:17:05.96,0:17:08.03,Default,,0000,0000,0000,,footage? Number of employees? Based on
Dialogue: 0,0:17:08.03,0:17:09.92,Default,,0000,0000,0000,,what time frame? A quarter? A year? Five
Dialogue: 0,0:17:09.92,0:17:11.69,Default,,0000,0000,0000,,years? Ten years? Twenty years? Fifty years? A hundred
Dialogue: 0,0:17:11.69,0:17:13.31,Default,,0000,0000,0000,,years? I haven't agreed to those
Dialogue: 0,0:17:13.31,0:17:15.14,Default,,0000,0000,0000,,standards. How can you declare yourself
Dialogue: 0,0:17:15.14,0:17:15.98,Default,,0000,0000,0000,,the winner?
Dialogue: 0,0:17:15.98,0:17:17.72,Default,,0000,0000,0000,,How can you declare yourself number one
Dialogue: 0,0:17:17.72,0:17:19.58,Default,,0000,0000,0000,,where no one else in the game has agreed
Dialogue: 0,0:17:19.58,0:17:23.63,Default,,0000,0000,0000,,to the rules? It's arbitrary. There is no
Dialogue: 0,0:17:23.63,0:17:27.23,Default,,0000,0000,0000,,winning because there's no end. In other
Dialogue: 0,0:17:27.23,0:17:29.72,Default,,0000,0000,0000,,words, companies are playing finite games.
Dialogue: 0,0:17:29.72,0:17:31.82,Default,,0000,0000,0000,,Listen to their language. They're trying
Dialogue: 0,0:17:31.82,0:17:33.71,Default,,0000,0000,0000,,to beat their competition. What does that
Dialogue: 0,0:17:33.71,0:17:37.28,Default,,0000,0000,0000,,even mean? It's the leaders and the
Dialogue: 0,0:17:37.28,0:17:38.84,Default,,0000,0000,0000,,companies that understand the game that
Dialogue: 0,0:17:38.84,0:17:40.55,Default,,0000,0000,0000,,they're in and organize their resources
Dialogue: 0,0:17:40.55,0:17:42.12,Default,,0000,0000,0000,,and their decision-making around
Dialogue: 0,0:17:42.12,0:17:44.63,Default,,0000,0000,0000,,the infinite contest that outlast and
Dialogue: 0,0:17:44.63,0:17:47.94,Default,,0000,0000,0000,,frustrate their competition. All the
Dialogue: 0,0:17:47.94,0:17:49.47,Default,,0000,0000,0000,,companies that we've referred to as the
Dialogue: 0,0:17:49.47,0:17:52.50,Default,,0000,0000,0000,,exceptions--Southwest Airlines, Apple
Dialogue: 0,0:17:52.50,0:17:55.29,Default,,0000,0000,0000,,Computers, Harley Davidson--they're the
Dialogue: 0,0:17:55.29,0:17:57.36,Default,,0000,0000,0000,,exception. No. They're playing the
Dialogue: 0,0:17:57.36,0:17:59.91,Default,,0000,0000,0000,,infinite contest. They frustrate their
Dialogue: 0,0:17:59.91,0:18:03.15,Default,,0000,0000,0000,,competition is what happens. That's what
Dialogue: 0,0:18:03.15,0:18:04.44,Default,,0000,0000,0000,,happens because they're not playing to
Dialogue: 0,0:18:04.44,0:18:05.45,Default,,0000,0000,0000,,win.
Dialogue: 0,0:18:05.45,0:18:08.52,Default,,0000,0000,0000,,Jim Senegal, the founder of Costco, which
Dialogue: 0,0:18:08.52,0:18:10.05,Default,,0000,0000,0000,,is the only real company that
Dialogue: 0,0:18:10.05,0:18:11.49,Default,,0000,0000,0000,,gives Walmart a run for its money.
Dialogue: 0,0:18:11.49,0:18:13.94,Default,,0000,0000,0000,,He says, "Public companies are looking to
Dialogue: 0,0:18:13.94,0:18:15.87,Default,,0000,0000,0000,,succeed for the quarter." He says, "We're
Dialogue: 0,0:18:15.87,0:18:17.40,Default,,0000,0000,0000,,looking for the next fifty years." You can
Dialogue: 0,0:18:17.40,0:18:18.87,Default,,0000,0000,0000,,hear him. He's playing the infinite
Dialogue: 0,0:18:18.87,0:18:22.61,Default,,0000,0000,0000,,contest. I spoke at a leadership summit
Dialogue: 0,0:18:22.61,0:18:25.89,Default,,0000,0000,0000,,for Microsoft. I also spoke at a
Dialogue: 0,0:18:25.89,0:18:28.74,Default,,0000,0000,0000,,leadership summit for Apple. Now, at the
Dialogue: 0,0:18:28.74,0:18:31.14,Default,,0000,0000,0000,,Microsoft summit, I would say 70% of the
Dialogue: 0,0:18:31.14,0:18:33.03,Default,,0000,0000,0000,,executives, and this was under the Steve
Dialogue: 0,0:18:33.03,0:18:35.43,Default,,0000,0000,0000,,Ballmer days, I would say about 70% of
Dialogue: 0,0:18:35.43,0:18:38.22,Default,,0000,0000,0000,,the executives spent about 70% of their
Dialogue: 0,0:18:38.22,0:18:40.83,Default,,0000,0000,0000,,presentations talking about how to beat
Dialogue: 0,0:18:40.83,0:18:45.72,Default,,0000,0000,0000,,Apple. At the Apple summit, a 100%
Dialogue: 0,0:18:45.72,0:18:47.43,Default,,0000,0000,0000,,of the executives spent a
Dialogue: 0,0:18:47.43,0:18:48.87,Default,,0000,0000,0000,,100% of their presentations
Dialogue: 0,0:18:48.87,0:18:51.03,Default,,0000,0000,0000,,talking about how to help teachers teach
Dialogue: 0,0:18:51.03,0:18:53.70,Default,,0000,0000,0000,,and how to help students learn. One was
Dialogue: 0,0:18:53.70,0:18:56.01,Default,,0000,0000,0000,,obsessed with their competition, the
Dialogue: 0,0:18:56.01,0:18:57.39,Default,,0000,0000,0000,,other one was obsessed with where
Dialogue: 0,0:18:57.39,0:18:59.55,Default,,0000,0000,0000,,they're going. So at the end of my
Dialogue: 0,0:18:59.55,0:19:03.12,Default,,0000,0000,0000,,presentation at Microsoft, they gave me a
Dialogue: 0,0:19:03.12,0:19:05.37,Default,,0000,0000,0000,,gift. They gave me the new Zune, which was
Dialogue: 0,0:19:05.37,0:19:07.23,Default,,0000,0000,0000,,the competitor to the iPod Touch when it
Dialogue: 0,0:19:07.23,0:19:09.45,Default,,0000,0000,0000,,was a thing. Right? And I have to tell you,
Dialogue: 0,0:19:09.45,0:19:12.32,Default,,0000,0000,0000,,this piece of technology was spectacular.
Dialogue: 0,0:19:12.32,0:19:15.54,Default,,0000,0000,0000,,It was beautiful. The user interface was
Dialogue: 0,0:19:15.54,0:19:18.00,Default,,0000,0000,0000,,incredible. The design was amazing. It was
Dialogue: 0,0:19:18.00,0:19:20.22,Default,,0000,0000,0000,,intuitive. It was one of the most
Dialogue: 0,0:19:20.22,0:19:21.84,Default,,0000,0000,0000,,beautiful, elegant pieces of technology
Dialogue: 0,0:19:21.84,0:19:24.39,Default,,0000,0000,0000,,I'd ever seen. Right? Now, they didn't work
Dialogue: 0,0:19:24.39,0:19:25.71,Default,,0000,0000,0000,,with iTunes, which is an entirely
Dialogue: 0,0:19:25.71,0:19:28.21,Default,,0000,0000,0000,,different problem. I couldn't use it.
Dialogue: 0,0:19:28.21,0:19:30.98,Default,,0000,0000,0000,,[Audience laughing].
Dialogue: 0,0:19:30.98,0:19:36.45,Default,,0000,0000,0000,,But that's something else. I'm sitting in
Dialogue: 0,0:19:36.45,0:19:38.37,Default,,0000,0000,0000,,the back of a taxi with a senior Apple
Dialogue: 0,0:19:38.37,0:19:40.17,Default,,0000,0000,0000,,executive, sort of employee number 12
Dialogue: 0,0:19:40.17,0:19:43.73,Default,,0000,0000,0000,,kind of guy, and I decide to stir the pot.
Dialogue: 0,0:19:43.73,0:19:48.39,Default,,0000,0000,0000,,And I turn to him and I say, "You know, I spoke
Dialogue: 0,0:19:48.39,0:19:50.82,Default,,0000,0000,0000,,at a Microsoft summit, and they gave me
Dialogue: 0,0:19:50.82,0:19:53.52,Default,,0000,0000,0000,,their new Zune, and I have to tell you, it
Dialogue: 0,0:19:53.52,0:19:57.59,Default,,0000,0000,0000,,is so much better than your iPod Touch."
Dialogue: 0,0:19:57.59,0:20:01.89,Default,,0000,0000,0000,,And he turned to me and said, "I have no
Dialogue: 0,0:20:01.89,0:20:04.68,Default,,0000,0000,0000,,doubt." Conversation over.
Dialogue: 0,0:20:04.68,0:20:10.02,Default,,0000,0000,0000,,[Audience laughing].
Dialogue: 0,0:20:10.02,0:20:13.53,Default,,0000,0000,0000,,Because the infinite player isn't playing to be
Dialogue: 0,0:20:13.53,0:20:16.17,Default,,0000,0000,0000,,number one every day with every product.
Dialogue: 0,0:20:16.17,0:20:18.03,Default,,0000,0000,0000,,They're playing to outlast the
Dialogue: 0,0:20:18.03,0:20:20.19,Default,,0000,0000,0000,,competition. If I had said to Microsoft,
Dialogue: 0,0:20:20.19,0:20:21.60,Default,,0000,0000,0000,,"Oh, I've got the new iPod Touch, it's so
Dialogue: 0,0:20:21.60,0:20:22.89,Default,,0000,0000,0000,,much better than your new Zune," they would have said,
Dialogue: 0,0:20:22.89,0:20:24.48,Default,,0000,0000,0000,,"Can we see it? What does it do? How--We
Dialogue: 0,0:20:24.48,0:20:26.79,Default,,0000,0000,0000,,have to see it." Because one is obsessed
Dialogue: 0,0:20:26.79,0:20:28.26,Default,,0000,0000,0000,,with their competition, the other is
Dialogue: 0,0:20:28.26,0:20:30.00,Default,,0000,0000,0000,,obsessed with why they do what they do,
Dialogue: 0,0:20:30.00,0:20:31.89,Default,,0000,0000,0000,,the other is obsessed with where they're
Dialogue: 0,0:20:31.89,0:20:34.38,Default,,0000,0000,0000,,going. And the reason Apple frustrates
Dialogue: 0,0:20:34.38,0:20:35.97,Default,,0000,0000,0000,,their competition is because secretly,
Dialogue: 0,0:20:35.97,0:20:38.16,Default,,0000,0000,0000,,they're not even competing against them.
Dialogue: 0,0:20:38.16,0:20:40.59,Default,,0000,0000,0000,,They're competing against themselves. And
Dialogue: 0,0:20:40.59,0:20:43.47,Default,,0000,0000,0000,,they understand that sometimes you're a
Dialogue: 0,0:20:43.47,0:20:45.48,Default,,0000,0000,0000,,little bit ahead, and sometimes you're a
Dialogue: 0,0:20:45.48,0:20:47.52,Default,,0000,0000,0000,,little bit behind. And sometimes your
Dialogue: 0,0:20:47.52,0:20:49.77,Default,,0000,0000,0000,,product is better, and sometimes you're
Dialogue: 0,0:20:49.77,0:20:51.93,Default,,0000,0000,0000,,not. But if you wake up every single
Dialogue: 0,0:20:51.93,0:20:54.93,Default,,0000,0000,0000,,morning and compete against yourself, how
Dialogue: 0,0:20:54.93,0:20:56.73,Default,,0000,0000,0000,,do I make our products better than they
Dialogue: 0,0:20:56.73,0:20:58.68,Default,,0000,0000,0000,,were yesterday? How do I take care of our
Dialogue: 0,0:20:58.68,0:21:00.15,Default,,0000,0000,0000,,customers better than we did yesterday?
Dialogue: 0,0:21:00.15,0:21:02.25,Default,,0000,0000,0000,,How do we advance our cause more
Dialogue: 0,0:21:02.25,0:21:05.01,Default,,0000,0000,0000,,efficiently, more productively than we
Dialogue: 0,0:21:05.01,0:21:06.69,Default,,0000,0000,0000,,did yesterday? How do we find new
Dialogue: 0,0:21:06.69,0:21:08.88,Default,,0000,0000,0000,,solutions to advance our calling, our
Dialogue: 0,0:21:08.88,0:21:10.83,Default,,0000,0000,0000,,cause, our purpose, our beliefs, our why
Dialogue: 0,0:21:10.83,0:21:12.87,Default,,0000,0000,0000,,every single day? What you'll find is,
Dialogue: 0,0:21:12.87,0:21:16.95,Default,,0000,0000,0000,,over time, you will probably be ahead
Dialogue: 0,0:21:16.95,0:21:19.23,Default,,0000,0000,0000,,more often. Those who play the infinite
Dialogue: 0,0:21:19.23,0:21:20.76,Default,,0000,0000,0000,,game understand it's not about the
Dialogue: 0,0:21:20.76,0:21:23.88,Default,,0000,0000,0000,,battle, it's about the war. And they don't
Dialogue: 0,0:21:23.88,0:21:27.48,Default,,0000,0000,0000,,play to win every day, and they frustrate
Dialogue: 0,0:21:27.48,0:21:29.01,Default,,0000,0000,0000,,their competition until their
Dialogue: 0,0:21:29.01,0:21:31.20,Default,,0000,0000,0000,,competition drops out of the game. Every
Dialogue: 0,0:21:31.20,0:21:33.21,Default,,0000,0000,0000,,single bankruptcy, almost every merger
Dialogue: 0,0:21:33.21,0:21:35.13,Default,,0000,0000,0000,,and acquisition is basically a company
Dialogue: 0,0:21:35.13,0:21:36.72,Default,,0000,0000,0000,,saying, "We no longer have the will or the
Dialogue: 0,0:21:36.72,0:21:38.55,Default,,0000,0000,0000,,resources to continue to play, and we
Dialogue: 0,0:21:38.55,0:21:39.99,Default,,0000,0000,0000,,have no choice but to either drop out of the
Dialogue: 0,0:21:39.99,0:21:40.81,Default,,0000,0000,0000,,game or
Dialogue: 0,0:21:40.81,0:21:42.52,Default,,0000,0000,0000,,or merge our resources with another
Dialogue: 0,0:21:42.52,0:21:44.26,Default,,0000,0000,0000,,player so that we can stay in the game."
Dialogue: 0,0:21:44.26,0:21:46.57,Default,,0000,0000,0000,,That's what that is. And if you think
Dialogue: 0,0:21:46.57,0:21:47.77,Default,,0000,0000,0000,,about the number of bankruptcies and
Dialogue: 0,0:21:47.77,0:21:49.54,Default,,0000,0000,0000,,mergers and acquisitions, it's kind of
Dialogue: 0,0:21:49.54,0:21:51.67,Default,,0000,0000,0000,,proof that most companies don't even
Dialogue: 0,0:21:51.67,0:21:54.31,Default,,0000,0000,0000,,know the game they're in. You want to be
Dialogue: 0,0:21:54.31,0:21:56.26,Default,,0000,0000,0000,,a great leader? Start with empathy. You
Dialogue: 0,0:21:56.26,0:21:58.90,Default,,0000,0000,0000,,want to be a great leader? Change your
Dialogue: 0,0:21:58.90,0:22:01.15,Default,,0000,0000,0000,,perspective and play the game you're
Dialogue: 0,0:22:01.15,0:22:05.03,Default,,0000,0000,0000,,actually playing. Thank you very much.
Dialogue: 0,0:22:05.03,0:22:08.20,Default,,0000,0000,0000,,[Applause]