-
[Applause]
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[Applause]
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so I'm embarrassed that I have a career
-
I talk about things like trust and
-
cooperation and there should be no
-
demand for my work but the fact of the
-
matter is is there is demand for my work
-
which means that there's an opportunity
-
it means that trust and cooperation are
-
not yet standard in our organizations
-
and yet they should be and we know that
-
which is why we're looking for ways to
-
bring those things to our organizations
-
so I thought I would do something a
-
little different today you know when
-
you're speaking to tens of thousands of
-
people and you have the opportunity to
-
share a message of course most rational
-
people would say let's go with something
-
I've talked about lots of times and I'm
-
really good at but I'm not normal so I'm
-
gonna do something completely new and I
-
hope this works out there are two things
-
that I think that great leaders need to
-
have empathy and perspective and I think
-
these things are very often forgotten
-
leaders are so often so concerned about
-
their status of their position and
-
organization they actually forget their
-
real job and the real job of a leader is
-
not about being in charge it's about
-
taking care of those in our charge and I
-
don't think people realize this and I
-
don't think people train for this when
-
we're junior our only responsibility is
-
to be good at our jobs that's all we
-
really have to do and some people
-
actually go get advanced education and
-
so that they can be really good at their
-
jobs accountants or whatever right and
-
you show up and you work hard and the
-
company will give us tons and tons of
-
training how to do our jobs they'll
-
shows how to use the software they'll
-
send us away for a few days to get
-
trained in whatever it is that we're
-
doing for the company and then they
-
expect us to go be good at our jobs and
-
that's what we do we work very hard and
-
if you're good at your job they'll
-
promote you and at some point you'll get
-
promoted to position where we're now
-
responsible for the people who do the
-
job we used to do but nobody shows us
-
how to do that and that's why we get
-
managers and not leaders because the
-
reason our managers
-
micromanaging us is because they
-
actually do know how to do the job
-
better than us that's what got them
-
promoted really what we have to do is go
-
through a transition some people make it
-
quickly some people make it slowly and
-
unfortunately some people will never
-
make that transition at all which is we
-
have to go this through this transition
-
of being responsible for the job and
-
then turning it to somebody who's now
-
responsible for the people who are
-
responsible for the job and as I said
-
before one of the great things that is
-
lacking in most of our companies is that
-
they are not teaching us how to lead and
-
leadership is a skill like any other is
-
a practice' balloon able skill and it is
-
something that you work on it's like a
-
muscle if you practice it all the days
-
you will get good at it and you will get
-
to become a strong leader if you stop
-
practicing you will become a weak leader
-
like parenting everyone has the capacity
-
to be a parent doesn't mean everybody
-
wants to be a parent and doesn't mean
-
everybody shouldn't be a parent
-
leadership is the same we all have the
-
capacity to be a leader doesn't mean
-
everybody should be a leader and it
-
doesn't mean everybody wants to be a
-
leader and the reason is because it
-
comes at great personal sacrifice
-
remember you're not in charge you're
-
responsible for those in your charge
-
that means things like when everything
-
goes right you have to give away all the
-
credit and when everything goes wrong
-
you have to take all the responsibility
-
that sucks right it's things like
-
staying late to show somebody what to do
-
it's things like when something does
-
actually break when something goes wrong
-
instead of yelling and screaming and
-
taking over you say try again when the
-
overwhelming pressures are not on them
-
the overwhelming pressures are on us at
-
the end of the day great leaders are not
-
responsible for the job they're
-
responsible for the people who are
-
responsible for the job they're not even
-
responsible for the results I love
-
talking to CEOs and say what's your
-
priority and they put their hands on
-
their hips old proud and say my priority
-
is my customer I'm like really even talk
-
to a customer in 15 years
-
there's no CEO on the planet responsible
-
for the customer they're just not
-
they're responsible for the people who
-
responsible for the people who
-
responsible for the customer I'll tell
-
you a true story a few months ago I
-
stayed at the Four Seasons in Las Vegas
-
it is a wonderful hotel and the reason
-
it's a wonderful hotel is not because of
-
the fancy beds any hotel can go and buy
-
a fancy bed
-
the reason it's a wonderful hotel is
-
because of the people who work there
-
if you walk past somebody at the Four
-
Seasons than this and they say hello to
-
you you get the feeling that they
-
actually wanted to say hello to you it's
-
not that somebody told them that you
-
have to say hello to all the customers
-
say hello to all the guests right you
-
actually feel that they care now in
-
their Lobby they have a coffee stand and
-
I one afternoon I went to buy a cup of
-
coffee and there was a barista by the
-
name of Noah who was serving me Noah was
-
fantastic he was friendly and fun and he
-
was engaging with me and I had so much
-
fun buying a cup of coffee I actually
-
think I gave a hundred percent tip right
-
he was wonderful so as is my nature I
-
asked Noah do you like your job and
-
without skipping a beat Noah says I love
-
my job and so I followed up I said what
-
is it that the four seasons is doing
-
that would make you say to me I love my
-
job and without skipping a beat Noah
-
said throughout the day managers will
-
walk past me and ask me how I'm doing if
-
there's anything that I need to do my
-
job better he said not just my manager
-
any manager and then he said something
-
magical he says I also work at Caesars
-
Palace and Caesars at Caesar's Palace
-
the managers are trying to make sure
-
we're doing everything right they catch
-
us when we do things wrong he says when
-
I go to work there I like to keep my
-
head under the radar and just get
-
through the day so I can get my paycheck
-
he says here at the Four Seasons I feel
-
I can be myself same person entirely a
-
different experience from the from the
-
customer who will engage with Noah so we
-
in leadership are always criticizing the
-
people we're always saying we gotta get
-
the right people
-
I've got to film I run my team I gotta
-
get the right people but the reality is
-
it's not the people it's the leadership
-
if we create the right environment we
-
will get people like Noah at the four
-
seasons if we create the wrong
-
environment we will get people like Noah
-
at Caesar's Palace it's not the people
-
and yet we're so quick to hire and fire
-
you can't hire and fire your children if
-
there's if your kids are struggling we
-
don't say you got to see at school
-
you're up for adoption so why is it that
-
when somebody has performance problems
-
at work why is it that our instinct is
-
to say you're out we do not practice
-
empathy what does empathy look like
-
here's the lack of empathy this is
-
normal in our business world you walk
-
into someone's office someone walks into
-
our office and says your numbers have
-
been down for the third quarter in a row
-
you have to pick up your numbers
-
otherwise I can't guarantee what the
-
future will look like how inspired you
-
think that person is to come to work the
-
next day here's what empathy looks like
-
you walk into someone's office someone
-
walks into your office and says your
-
numbers are down for the third quarter
-
in a row are you okay I'm worried about
-
you
-
what's going on we all have performance
-
issues maybe someone's kid is sick maybe
-
they're having problems in their
-
marriage maybe one of their parents is
-
dying we don't know what's going on in
-
their lives and of course it will affect
-
performance at work empathy is being
-
concerned about the human being not just
-
their output we have for some reason our
-
work world has changed in the past 20
-
and 30 years we are suffering the side
-
effects of business theories left over
-
from the 80s and 90s and they are bad
-
for people and they are bad for business
-
let me give you an example the concept
-
of shareholder supremacy was a theory
-
proposed in the late 1970s it was
-
popularized in the 80s and 90s it is now
-
standard form today you talk to any
-
public company and you ask them their
-
priority and they say maximize
-
shareholder value
-
really that's like a coach prioritizing
-
the needs of the fans over the needs of
-
the players how you gonna build a
-
winning team with that model but that's
-
normal today we don't even perceive it
-
as broken or damaged or wrong or
-
outdated remember the 80s and 90s were
-
boom years with relative peace and a
-
kinder gentler cold war nobody was
-
practicing hiding under their desks in
-
school anymore we are no longer in those
-
times these are no longer boom years
-
these are no longer peaceful times and
-
those models cannot work today
-
here's another one mass layoffs using
-
someone's livelihood to balance the
-
books right it's so normal in America
-
today that we don't even understand how
-
broken and how damaging it is not only
-
to human beings but to business you know
-
companies talk about how they want to
-
build trust in cooperation then they
-
announce a round of layoffs do you know
-
the quickest way to destroy trust and
-
destroy cooperation in a business
-
literally in one day lay people off and
-
everyone gets scared all right can you
-
imagine sending someone home to say
-
honey I can no longer provide for our
-
family because the company missed its
-
arbitrary projections this year and
-
forget about the people who lost their
-
job think about the people who kept
-
their jobs because every single decision
-
a company makes as a piece of
-
communication and the company cut the
-
company has just communicated to
-
everybody else this is not a meritocracy
-
we don't care how hard you work or how
-
long you've worked here if we miss our
-
numbers and you happen to fall on the
-
wrong side of the spreadsheet I'm sorry
-
we cannot guarantee employment in other
-
words we come to work every day afraid
-
and we're asking our youngest generation
-
to work in environments where how would
-
any of us ever stand up and admit I made
-
a mistake we're constantly being told
-
you has to be vulnerable leaders are
-
vulnerable what does that even mean it
-
doesn't mean you walk around crying I'm
-
honorable right know what vulnerability
-
means as you create an environment in
-
which someone feels safe enough to raise
-
their hand and said I don't know what
-
I'm doing
-
you've given me a job and I haven't been
-
trained to do it I need help I made a
-
mistake I screwed something up I'm
-
scared
-
I'm worried all of these things no one
-
would ever admit inside a company
-
because it puts a target on your head in
-
case there's another round and so we
-
keep it to ourselves and how can a
-
company ever do well if nobody's ever
-
willing to admit they made a mistake
-
that's scared or they don't know what
-
they're doing and so we've literally
-
created cultures in which every single
-
day everybody comes to work and liya hai
-
lies hides and fakes and we're asking
-
our youngest generation to work and
-
succeed and find themselves and build
-
their confidence and overcome their
-
addiction to technology and build strong
-
relationships at work we're asking to do
-
this and these lis environments we've
-
created we keep saying to them you're
-
the future leaders we're the leaders now
-
we're in control what are we doing this
-
is what empathy means it means if
-
there's an entire generation struggling
-
maybe it's not them it's like you know
-
the only thing that I that the common
-
factor in all my failed relationships me
-
same thing Oh II just can't get the
-
right Act or you know the right
-
performance out of our people maybe it's
-
you right it's not a generation it's not
-
them they're not difficult or hard to
-
understand they're human beings like the
-
rest of us trying to find their way
-
trying to work in a place where they
-
feel that someone cares about them as a
-
human being by the way that's what we
-
all want in other words it's not even
-
generational it's all of us this is the
-
practice of empathy that if we're
-
struggling to communicate to someone if
-
it's struggling to help someone be at
-
their natural best I'm tired of people
-
saying to me how do I get the best out
-
of my people really that's what you want
-
they're like a towel just lingam how can
-
I get the most out of them
-
No how do I help my people be at their
-
natural best right we're not asking
-
these questions we are not practicing
-
empathy
-
we have to start by practicing empathy
-
and relate to what they may be going
-
through and it will profoundly change
-
the decisions we make it will profoundly
-
change the way we see the world
-
someone's driving to work you're driving
-
to work and someone wants to cut into
-
your lane what do you do if you pull
-
your car up would you let them in most
-
of us pull our cars up and go like this
-
you wait your turn now let's practice
-
empathy I don't know maybe they've been
-
out of work for six months maybe they
-
had trouble getting the kids out to
-
school this morning and now they're
-
running late for a really important
-
interview and they just have to get to
-
this interview and they're gonna cut
-
into our lane or maybe they're just a
-
bastard I don't know but that's the
-
point we don't know we don't know and
-
the practice of empathy will say I'll
-
let them in and I'll arrive to work one
-
car lengths late right we don't always
-
have to be right we do always have to be
-
in charge we don't have to be the one
-
who succeeds it's not about winning or
-
losing and that's where I go to the
-
second point after empathy comes
-
perspective where it's not about winning
-
or losing in game theory there are two
-
kinds of games there are finite games
-
and there are infinite games and this is
-
how you're gonna change your perspective
-
right a finite game is defined as known
-
players fixed rules and an agreed upon
-
objective baseball for example we know
-
the rules we all agree to the rules and
-
whoever has more runs at the end of nine
-
innings is the winner and the game is
-
over no one ever says if we can just
-
play two more innings I know we can come
-
back doesn't work that way the game is
-
over right that's a finite game then you
-
have an infinite game infinite games are
-
defined as known and unknown players the
-
rules are changeable and the objective
-
is to keep the game in play to
-
perpetuate the game when you pit a
-
finite player versus a finite player
-
this system is
-
baseball is stable right when you pit an
-
infant an infinite player versus an
-
infinite player this system is also
-
stable like the Cold War for example
-
because there cannot be a winner and a
-
loser there are no winners and losers in
-
an infinite game right it doesn't exist
-
and because there are no winners or
-
losers what ends up happening in the
-
infinite contest is players drop out
-
when they run out of the will or the
-
resources to play but there's no winners
-
or losers problems arise when you pit a
-
finite player versus an infinite player
-
because the finite players playing to
-
win and an infinite player is to playing
-
to keep the game going right this is
-
what happened to us in Vietnam we were
-
playing to win and the Vietnamese were
-
fighting for their lives we were the
-
ones who got stuck in quagmire this is
-
the Soviet Union in Afghanistan they
-
were trying to beat the Mujahideen and
-
the Mujahideen would fight for as long
-
as is necessary quagmire now let's look
-
at business the game of business has
-
pre-existed or has existed long before
-
every single company that exists on this
-
planet today and it will outlast every
-
single company that it lives that exists
-
on this planet today there's no winning
-
the game of business and the reason is
-
is because we haven't agreed to the
-
rules I get such a kick out of this you
-
realize how many companies actually
-
don't know the game they're in right
-
listen to the language of the companies
-
use we're trying to beat our competition
-
we're trying to be number one did you
-
know that we were ranked number one look
-
at the listing based on what criteria
-
revenues profits market share square
-
footage number of employees based on
-
what time frame a quarter a year five
-
years ten years 20 years 50 years 100
-
years I haven't agreed to those
-
standards how can you declare yourself
-
the winner
-
how can you declare yourself number one
-
where no one else in the game has agreed
-
to the rules it's arbitrary there is no
-
winning because there's no end in other
-
words companies are playing finite games
-
listen to their language they're trying
-
to beat their competition what does that
-
even mean it's the leaders and the
-
companies that understand the game that
-
they're in and organize their resources
-
and their decision making
-
the infinite contest that outlast and
-
frustrate their competition all the
-
companies that we've referred to as the
-
exceptions Southwest Airlines Apple
-
computers harley-davidson they're the
-
exception no they're playing the
-
infinite contest they frustrate their
-
competition is what happens that's what
-
happens because they're not playing to
-
win
-
Jim Senegal the founder of Costco which
-
is the company only real company that
-
gives Walmart a run for its money
-
he says public companies are looking to
-
succeed for the quarter says we're
-
looking for the next 50 years you can
-
hear him he's playing the infinite
-
contest I spoke at a Leadership Summit
-
for Microsoft I also spoke at a
-
Leadership Summit for Apple now at the
-
Microsoft summit I would say 70% of the
-
executives and this was under the Steve
-
Ballmer days I would say about 70% of
-
the executives spend about 70% of their
-
presentations talking about how to beat
-
Apple at the Apple Summit a hundred
-
percent of the executives spent a
-
hundred percent of their presentations
-
talking about how to help teachers teach
-
and how to help students learn one was
-
obsessed with their competition the
-
other one was obsessed with where
-
they're going so at the end of my
-
presentation at Microsoft they gave me a
-
gift they gave me the new Zune which was
-
the competitor to the iPod touch when it
-
was a thing right and I have to tell you
-
this piece of technology was spectacular
-
it was beautiful the user interface was
-
incredible the design was amazing it was
-
intuitive it was one of the most
-
beautiful elegant pieces of technology
-
I'd ever seen right now they didn't work
-
with iTunes which is an entirely
-
different problem I couldn't use it
-
but that's something else I'm sitting in
-
the back of a taxi with a senior Apple
-
executive sort of employee number twelve
-
kind of guy and I decide to stir the pot
-
and I turned him I say you know I spoke
-
at a Microsoft summit and they gave me
-
their new Zune and I have to tell you it
-
is so much better than your iPod touch
-
and he turned to me and said I have no
-
doubt conversation over because the
-
infinite player isn't playing to be
-
number one every day with every product
-
they're playing to outlast the
-
competition if I had sent to Microsoft
-
oh I've got the new iPod touch it's so
-
much better than your new Zune there was
-
a can we see it what does it do how we
-
have to see it because one is obsessed
-
with their competition the other is
-
obsessed with why they do what they do
-
the other is obsessed with where they're
-
going and the reason Apple frustrates
-
their competition is because secretly
-
they're not even competing against them
-
they're competing against themselves and
-
they understand that sometimes you're a
-
little bit ahead and sometimes you're a
-
little bit behind and sometimes your
-
product is better and sometimes you're
-
not but if you wake up every single
-
morning and compete against yourself how
-
do I make our products better than they
-
were yesterday how do I take care of our
-
customers better than we did yesterday
-
how do we advance our cause more
-
efficiently more productively than we
-
did yesterday how do we find new
-
solutions to advance our calling our
-
cause our purpose our beliefs are why
-
every single day what you'll find is
-
over time you will probably be ahead
-
more often those who play the infinite
-
game understand it's not about the
-
battle it's about the war and they don't
-
play to win every day and they frustrate
-
their competition until their
-
competition drops out of the game every
-
single bankruptcy almost every merger
-
and acquisition is basically a company
-
saying we no longer have the will or the
-
resources to continue to play and we
-
have no choice to either drop out of the
-
game or
-
or merge our resources with another
-
player so that we can stay in the game
-
that's what that is and if you think
-
about the number of bankruptcies and
-
mergers and acquisitions it's kind of
-
proof that most companies don't even
-
know the game they're in you want to be
-
a great leader start with empathy you
-
want to be a great leader change your
-
perspective and play the game you're
-
actually playing thank you very much
-
[Applause]