Roam Notes: Elon Musk Interview from Air Warfare Symposium 2020

  • "Author::" [[Elon Musk]] [[General John F. Thompson]]
  • "Source::" https://www.youtube.com/watch?v=sp8smJFaKYE
  • "Tags::" #Business #Management #Leadership #Innovation #SpaceX #Tesla #Government
  • "Anki Tag::" musk_2020_air_warfare_symposium
  • "Anki Deck Link::" link
  • {{[youtube]: https://www.youtube.com/watch?v=sp8smJFaKYE}}
  • Overview

  • [[General John F. Thompson]] interviews [[Elon Musk]] with a focus on [[innovation]], and how organizations such as the [[US Air Force]] can become more innovative. The interview contains practical information for senior management in large organizations that want to improve innovation.
  • Notes

  • 6:15 Interview Begins. How do you ensure products don’t remain static and incrementally improve over time? #[[radical innovation]]
    • It’s important to push for radical [[breakthroughs]]. If you don’t push for these, you won’t get radical outcomes. To get a big [[reward]], you must have a big [[risk]]. The [[US]] will fall behind in [[innovation]] if it doesn’t continue to do this. It’s a risk today and wasn’t in the past.
  • 13:00 Is this need driven by competition with other countries? Or is this regardless of competition? #competition
    • Without a doubt, if the [[US]] doesn’t make big moves in [[space]], it will be second place in space. [[Innovation]] is the key attribute of the US and it needs to use it.
  • 14:00 What does the US need to do to maintain that innovative competitive edge? #Ankified
    • [[Outcome-Based Procurement]] is very important. You say "this is the outcome sought" and whoever can achieve this outcome to a greater degree the [[government]] will do business with. #Procurement
  • 17:45 The workforce is a key component in radical innovation. What do you do to motivate a workforce to help them become more radically innovative? #Hiring #incentives #[[encouraging innovation in an organization]] #Ankified
    • The most important thing to do is to make sure that you have an incentive structure where innovation is rewarded and lack of innovation is punished. Carrot and stick. People that are innovating should be promoted sooner, and if someone’s in a role where innovation should be happening and it’s not, then they should not be promoted or exited. "Then let me tell you, you’ll get [[innovation]] real fast. How much do you want?"
  • 19:40 Wouldn’t that make people too risk averse?
    • You have to have some acceptance of failure – failure has to be an option. If you don’t allow trying and failing you might get something worse than lack of innovation – things may go backwards. "You want reward and punishment to be proportionate to the actions you seek." Reward for trying and succeeding, minor consequences for trying and failing, and major negative consequences for not trying. "With that incentive structure you’ll get innovation like you won’t believe."
  • 21:20 What about processes – are there processes you recommend to bring about radical change?
    • Designing a production system of a new product is at least 1-2 orders of magnitude harder than designing the initial prototype.
    • Designing a rocket easy. Making one of it is hard. The making of a production line that builds and launches many is extremely hard.
  • 26:00 [[Starlink]] – as you scale to build more and more satellites and launch them, what are challenges you’ve had to overcome? #Ankified
    • It’s important to have a tight feedback loop between the [[design]] of the object and the [[manufacturing]] system. When you design, you don’t realize the parts that are difficult to manufacture, so bring manufacturing and design up together. Counterintuitively, it can be the right thing to do to manufacture the wrong thing, i.e. build it before design is done, because you discover what’s hard to manufacture.
  • 29:15 To figure out what to build, you could query customers ("customer pull", e.g. improving a [[Tesla]] based on customer feedback), or innovate and push something into the customer base ("company push", e.g. iPad). How do you think about that balance? #Ankified
    • [[Henry Ford]] once said that if you ask the public what they want, they would have said "a faster horse". When it’s a radically new product, people don’t know they want it because it’s not in their scope. Customer feedback once they have the fundamental product is a good thing, though. #[[market research]] #[[customer research]]
  • 34:00 In the next 5 years, what technology do you think will see the most advancement?
    • [[AI]] will be the most fundamentally transformative. Computer science and physics is what you would want to study to prepare for this future. If you want to understand the nature of the universe, these two fields have great predictive power.
  • 35:23 What should the Air Force be investing more in for innovation, other than reusable rockets?
    • Once you have dramatically reduced cost access to space, many things are enabled. Analogy: the [[Union Pacific Railroad]] made travel across the country much faster and less dangerous.
  • 41:30 The failures you’ve had to endure would drive many nuts. What’s the mindset to get through that?
    • You want the net useful output to be maximized. In baseball, it’s three strikes and you’re out. What you mostly care about is not any individual at-bat but the overall batting average. [[Failure]] is irrelevant unless it’s catastrophic.
  • 44:00 Intellectual property – how do you protect it in a world where information is constantly under attack? #[[intellectual property]]
    • [[Tesla]] open sourced their [[patents]] a few years ago. The goal of Tesla is to encourage the use of sustainable energy, so they want to help others that want to make an electric car.
    • The real way you achieve protection is by innovating fast enough. If innovation is high, you won’t need to worry about [[intellectual property]] because competitors will be copying something you did years ago. Innovation per unit of time is what matters. What is your rate of innovation, and is that accelerating or decelerating? [[Big Business]] tends to get less innovative per employee and also sometimes in absolute terms, and it’s likely because of incentives. Incentives must be aligned with innovation. #Ankified
  • 47:30 What are your thoughts on the competition between the [[US]] and [[China]].
    • [[China]] economy is going to be 2-3 time the size of the [[US]] economy, due to their huge population advantage. So, innovation has to close this massive gap in economic output. Economics are the foundation of war.
  • 50:40 How do you create a culture of enthusiasm at [[Tesla]] and [[SpaceX]]?
    • There is a pretty big selection effect, because especially in important engineering roles, they look for people that have demonstrated innovation. As mentioned earlier, the incentives in the company help – they reward innovation and punish lack of innovation.

Roam Notes on “Taking on the Challenge” Lecture by Jeff Bezos

Overview

  • [[Jeff Bezos]] talks about the [[Amazon]] approach to [[innovation]].

Excerpts

  • 0:45 [[Betty Graham]] invented white-out because she was annoyed by the inability to erase on a typewriter. She sold it to [[Gillette]] for $45M, and it was just white paint!
  • 2:07 Two approaches to solving problems with innovation: #[[To Ankify]]
    • Encounter a problem, and find a solution for it.
    • Work backwards by taking a new technology or understanding and finding important problems to solve with it. This is common in technology. E.g. [[carbon dating]].
  • 2:45 Persistence is a key attribute of innovators. E.g. WD-40 stands for "Water Displacement, 40th attempt". They originally made the product to keep water off [[Atlas 5]] rocket on US government contract. #[[persistence]] #[[characteristics of innovators]]
  • 4:30 One of the most pernicious obstacles to innovation: [[learned helplessness]]. Ordinary things bother innovators, while non-innovators become complacent and accept things as they are. E.g. windshield wipers – people used to stop every mile and use a rag. The inventor had to push through criticism that the wipers would be distracting, but in 10 years they were standard. Once people tried it they saw the value.
  • 10:00 A big impediment to innovation is [[either/or thinking]]. [[Amazon]] is always trying to reduce the number of [[customer contacts]]. This is a win-win for [[Amazon]] and its [[customers]]. It saves money for Amazon, and customers enjoy not having to deal with support. Eliminating defects saves money because you don’t have to handle customer contact and you improve the customer experience. There’s no [[trade-off]]. #[[barriers to innovation]]
  • 13:34 To innovate, you need to maximize the rate of [[experimentation]]. To do that, the cost experimentation has to be low. [[Amazon]] has built infrastructure to make experimentation easy, in a self-service way, without huge coordination or approval. #[[To Ankify]]
  • 18:00 [[Amazon]] is [[customer]] focused rather than [[competitor]] focused. Competitor strategy changes all the time, but the core things that customers want do not change: selection, low prices, and convenience. In 10 years, that’s going to stay the same. #[[customer vs competitor focus]]
  • 22:00 You need to have small, separate, empowered teams that aren’t subject to [[dependencies]] across the organization. They need to know whether they’re getting better or not. It’s easy to do that in a broad way (e.g. company profits) but difficult for individual teams – that’s the key. #KPIs
  • 29:00 The [[internet]] makes the customer experience a [[fixed cost]] rather than [[variable cost]]. "Buy With 1 Click" costs [[Amazon]] the same amount to develop whether they had 1000 customers or 1,000,000 customers. For retail stores, it’s not the same – with more customers, an improved experience costs more. #[[To Ankify]]
  • 35:00 Invention will always lead you down paths that people think are weird. #invention #innovation
  • 45:00 Hire builders. To have an innovative company, the single most important thing (more important than reducing the cost of experimentation) is to make sure you’re hiring the correct people in your organization. Hire people that like to build, like to invent. Get people that do this at all levels of granularity: some people are only interested in inventing at the grandest whiteboard level, but they can’t make progress in the real world, because they’re unwilling to figure out how to mount the camera on top of the truck. It turns out, that’s incredibly important. #Hiring #innovation

Roam Notes on “The Checklist Manifesto” by Atul Gawande

  • "Title::" The Checklist Manifesto: How to get Things Right
  • "Author::" [[Atul Gawande]]
  • "Reading Status::" #Complete
  • "Tags::" #Productivity #organization #process #Management #coordination #checklists #planning
  • Overview

    • [[Atul Gawande]] is a famous surgeon, writer, and public health researcher. This book is an ode to simple checklists as an extremely powerful tool to aid process and quality improvement, especially in situations where there is a lot of [[complexity]] and [[coordination]] required. The author became interested in checklists as a tool in his surgical practice, and the book points to many examples of how checklists improve [[efficiency]] and [[safety]] in a variety of situations.
    • A common theme in the book is the fallibility of human beings and the importance of acknowledging these shortcomings. The author points to examples where excellent surgeons and other professionals have made serious and "obvious" errors. It’s easy to dismiss these errors by blaming the person committing them as incompetent or lazy, but the fact is, without proper systems, these mistakes will happen regardless of how well trained or skilled a person is. Properly designed checklists can provide a crucial safeguard.
  • Excerpts

    • Three Different Levels of Complexity for Problems in the World (pg. 49) #complexity #[[problem solving]] #[[To Ankify]]
      • Simple: there is a recipe. Sometimes there are a few basic techniques to learn. But once mastered, following the recipe bring a high likelihood of success. #[[simple problems]]
      • Complicated: Can sometimes be broken down into a series of simple problems, but there is no straightforward recipe. Success often requires multiple people, multiple teams, and specialized expertise. Unanticipated difficulties are frequent. Timing and coordination are serious concerns. E.g. sending man to the moon. #[[complicated problems]]
      • Complex: Problems where the solution is not repeatable, and outcomes remain highly uncertain. Expertise is valuable but not sufficient. E.g. raising a child. [[complex problems]]
      • This distinction was developed by [[Brenda Zimmerman]] of [[York University]] and [[Sholom Glouberman]] of [[University of Toronto]] in their study of the science of complexity.
      • Note that many problems in engineering and operating a business are simple or complicated, and thus can be aided by [[checklists]].
    • How Skyscraper Engineers Build Checklists (pp. 62, 70) #engineering #coordination
      • Since every building is a new creature with its own particularities, every building checklist is new, too. It is drawn up by a group of people representing each of the sixteen trades… Then the whole checklist is sent to the subcontractors and other independent experts so they can double-check that everything is correct, that nothing has been missed.
      • They rely on one set of checklists to make sure the simple steps are not missed or skipped and in another set to make sure that everyone talks through and resolves all the hard and unexpected problems.
      • The biggest cause of serious error in this business is a failure of [[communication]]
      • [[Mark’s Notes]]: This almost magical process ensures that the knowledge of hundreds or thousands is used in the right place at the right time in the right way.
    • Why Dictating from the Top Fails in Complex Situations (pg. 79) #micromanaging #decentralization #centralization #complexity #Management
      • under conditions of true complexity – where the knowledge required exceeds that of any individual and unpredictability reigns – efforts to dictate every step from the center will fail. People need room to act and adapt. Yet they cannot succeed as isolated individuals, either – that is anarchy. Instead, they require a seemingly contradictory mix of [[freedom]] and [[expectation]] – expectation to coordinate, for example, and also to measure progress toward common goals. #leadership
      • [[Mark’s Notes]]: The example in the book is the [[Katrina disaster]]. [[FEMA]] tried to centrally control everything. In contrast, [[Walmart]] helped the community very effectively – its leadership sent a clear message to do what’s right, and do what you can to help these people in trouble.
        • Also, the skyscraper builders understand this, and learned to codify this type of [[decentralization]] in [[checklists]]. They have checklists for simple tasks, combined with checklists to make sure everyone is coordinating and communicating with each other. There must be judgement, but judgement must be aided / enhanced by procedure.
    • Good Checklists Versus Bad Checklists (pg. 120) #checklists #[[how to make checklists]]
      • Bad [[checklists]] are vague and imprecise. They are too long; they are hard to use; they are impractical. They are made by desk jockeys with no awareness of the situations in which they are to be deployed. They treat the people using the tools as dumb and try to spell out every single step. They turn people’s brains off rather than turn them on.
      • Good checklists, on the other hand, are precise. They are efficient, to the point, and easy to use even in the most difficult situations. They do not try to spell out everything – a checklist cannot fly a plane. Instead, they provide reminders of only the most critical and important steps – the ones that even the highly skilled professionals using them could miss. Good checklists are, above all, practical.
    • The Most Common Obstacle to Effective Teams (pg. 163) #coordination #teamwork #communication #[[To Ankify]]
      • The most common obstacle to effective teams, it turns out, is not the occasional fire-breathing, scalpel-flinging, terror-inducing surgeon, though some do exist … No, the more familiar and widely dangerous issue is a kind of silent disengagement, the consequence of specialized technicians sticking narrowly to their domains. ‘That’s not my problem’ is possibly the worst thing people can think, whether they are starting an operation, taxiing an airplane full of passengers down a runway, or building a thousand-foot-tall skyscraper.
    • Key Decisions to Make when Building Checklists (pp. 123-124) #[[To Ankify]] #checklists #[[how to make checklists]]
      • Define a clear pause point (point at which the checklist is supposed to be used)
      • Decide on whether you want a DO-CONFIRM checklist or READ-DO checklist.
        • DO-CONFIRM – team members perform a job from memory and experience, often separately. But then they stop. They pause to run the check-list and confirm that everything that was supposed to be done was done.
        • READ-DO – people carry out the tasks as they check them off – more like a recipe
      • Test it: “no matter how careful we might be, no matter how much thought we might put in, the checklist has to be tested in the real world, which is inevitably more complicated than expected” #testing
        • [[Mark’s Notes]]: Sometimes, testing is not easy to do. That’s why they have simulations in aviation and the author tried a similar test for surgery with his surgical team and a dummy.
    • How Not to Respond to Failure (pp. 185-186) #failure #Systems #fallibility
      • We are all plagued by failures – by missed subtleties, overlooked knowledge, and outright errors. For the most part, we have imagined that little can be done beyond working harder and harder to catch the problems and clean up after them. We are not in the habit of thinking the way army pilots did as they looked upon their shiny new Model 299 bomber – a machine so complex no one was sure human beings could fly it. They too could have decided just to ‘try harder’ or to dismiss a crash as the failings of a ‘weak’ pilot. Instead they chose to accept their fallibilities. They recognized the simplicity and power of using a checklist.
        • [[Mark’s Notes]]: It is such a common sentiment to blame failure on people’s abilities or motivations.

Roam Notes on “The Effective Executive” by Peter Drucker

  • "Title::" The Effective Executive: The Definitive Guide to Getting the Right Things Done
  • "Author::" [[Peter Drucker]]
  • "Reading Status::" #Complete
  • "Recommended By::" [[Tim Ferriss]]
  • "Tags::" #[[Business]] #[[Productivity]] #[[Management]] #[[Time Management]] #[[Effective Executives]] #Book
  • What is Expected of Executives? (pp. 1, 2, 7) #[[Effectiveness]] #execution
    • To be effective is the job of the executive. “To effect” and “to execute” are, after all, near-synonyms. Whether he works in a business or in a hospital, in a government agency or in a labor union, in a university or in the army, the executive is, first of all, expected to get the right things done. And this is simply that he is expected to be effective…
    • [[Intelligence]], [[imagination]], and [[knowledge]] are essential [[resources]], but only [[effectiveness]] converts them into [[results]]. By themselves, they only set limits to what can be attained.
    • Knowledge work is not defined by quantity. Neither is [[knowledge work]] defined by its costs. Knowledge work is defined by its [[results]].
  • Four Major Realities Over Which the Executive has Essentially no [[control]] (pp. 10-17)
    • Every one of them is built into the organization and into the executive’s day and work. He has no choice but to “cooperate with the inevitable.” But every one of these realities exerts pressure toward [[nonresults]] and [[nonperformance]].
      1. Executive’s [[time]] tends to belong to everybody else. Everybody can move in on his time, and everybody does (e.g. bosses, customers, city administration official).
      2. Executives are forced to keep on “[[operating]]” unless they take positive [[action]] to change the reality in which they live and work.
      3. He is within an organization. This means that he is effective only if and when other people make use of what he contributes. #[[Working with Teams]] #[[knowledge translation]]
      4. The executive is within an organization. He sees the inside—the organization—as close and immediate reality. He sees the outside only through thick and distorting lenses, if at all. #environment #bias
    • Mark’s notes:
      • 3 – [[knowledge translation]] is everywhere. Everyone specializes and there is this constant issue of communicating information to other groups that aren’t specialists. Without doing this effectively, the specialization is useless. “Each has to be able to use what the other produces.” #[[communication]] #[[Specialization]]
      • 4 – “The problem is rather that the important and relevant outside events are often [[qualitative]] and not capable of [[quantification]]. They are not yet “[[facts]].”” There might be an insight here about quantitative being systematically overrated. If it’s quantifiable, its being collected, which means systems are in place to collect it, which means people tend to understand its value and it’s more likely to be overrated. It follows that for unique [[insight]] or [[competitive advantage]], you need to use qualitative or use quantitative data in a way no one is currently using it. #[[Personal Ideas]]
  • The Five Practices of [[Effective Executives]] (pp 23-25)
    • They know where their [[time]] goes. They work systematically at managing the little of their time that can be brought under their control. #[[Time Management]]
    • They focus on outward [[contribution]]. They gear efforts to [[results]] rather than to [[work]]. They start out with the question, “What results are expected of me?” rather than with the work to be done, let alone with its techniques and tools. #[[outcomes]]
    • They build on strengths – their own [[strengths]], the strengths of their superiors, colleagues, subordinates, and on the strengths of in the situation i.e.. What they can do. They do not build on [[weakness]]. They do not start out with things they cannot do. #[[comparative advantage]]
    • They concentrate on the few major areas where superior [[performance]] will produce outstanding [[results]]. They force themselves to set priorities and stay with their priority decisions. #[[focus]]
    • **They make effective decisions. **They know that this is, above all, a matter of [[system]] – of the right steps in the right sequence. Making many [[decisions]] fast means to make the wrong decisions. What is needed are few, but fundamental [[decisions]]. #[[decision making]]
    • Mark’s Notes:
      • These practices form the basis of the book. Note that there is no “effective [[personality]]”. [[Peter Drucker]] has come across people of all [[personality types]] who are extremely effective.
      • Note that point 5 is in disagreement with advice I’ve heard from [[Patrick Collison]] and others in Silicon Valley where the [[speed]] and [[frequency]] of [[decision making]] is actually very important. However, they do add the caveat that [[decisions]] that are 1) higher [[impact]] and 2) tougher to reverse should be given more thought.
  • On the Scarcity Properties of Time (pg. 25-26) #[[time]] #[[Time Management]] #scarcity
    • Effective executives know that [[time]] is the limiting factor. The [[output]] limits of any [[process]] are set by the scarcest resource. In the process we call “accomplishment,” this is time.
    • Time is also a unique resource. Of the other major resources, [[money]] is actually quite plentiful. We long ago should have learned that it is the [[demand]] for [[capital]], rather than the [[supply]] thereof, which sets the limit to [[economic growth]] and activity. People—the third limiting resource—one can hire, though one can rarely hire enough good people. But one cannot rent, hire, buy, or otherwise obtain more time. #[[To Ankify]]
    • The [[supply]] of [[time]] is totally [[inelastic]]. No matter how high the [[demand]], the supply will not go up. There is no price for it and no [[marginal utility]] curve for it. Moreover, time is totally perishable and cannot be stored. Yesterday’s time is gone forever and will never come back. Time is, therefore, always in exceedingly short supply.
    • Time is totally irreplaceable. Within limits we can substitute one resource for another, copper for aluminum, for instance. We can substitute capital for human labor. We can use more knowledge or more brawn. But there is no substitute for [[time]]. Everything requires time. It is the one truly universal condition. All work takes place in time and uses up time. Yet most people take for granted this unique, irreplaceable, and necessary resource. Nothing else, perhaps, distinguishes effective executives as much as their tender loving care of time.”
    • Mark’s Notes: He goes on to note that people are terrible at estimating how much time has elapsed. It is therefore essential to track how much time you spend on things, and not just rely on memory. Make sure the record is made in “real” time, rather than later on from memory. Run a log on yourself for 3-4 weeks at a stretch twice a year (minimum), then rethink and rework the schedule. #[[time tracking]]
  • Instead of Starting with their Tasks, Effective Executives Start with This (3 Step Process) (pg. 25) #[[Time Management]] #[[time tracking]]
    • Effective executives, in my observation, do not start with their [[tasks]]. They start with their [[time]]. And they do not start out with [[planning]]. They start by finding out where their time actually goes. Then they attempt to manage their time and to cut back unproductive demands on their time. Finally they consolidate their “discretionary” time into the largest possible continuing units. This three-step process:
      • recording time,
      • managing time, and
      • consolidating time
    • is the foundation of executive effectiveness.
  • Things to Ask Employees in a Knowledge Work Firm on a Regular Basis (pp. 30-31) #Hiring #Management #[[performance reviews]]
    • Wherever [[knowledge workers]] perform well in large organizations, senior executives take time out, on a regular schedule, to sit down with them, sometimes all the way down to green juniors, and ask: “What should we at the head of this organization know about your work? What do you want to tell me regarding this organization? Where do you see opportunities we do not exploit? Where do you see dangers to which we are still blind? And, all together, what do you want to know from me about the organization?"
    • Mark’s Notes: An excellent [[leadership]] course I took with [[Linton Sellen]] offers advice that differs somewhat – Linton said the appropriate way to do this is for C mangers to query their B subordinates, and then C’s should tell B’s to do the same with their subordinate A’s and report back, and so on. C going directly to A undermines B’s [[authority]]. I’m believe Linton’s advice is better.
  • Why People Decisions are Time Consuming (pp. 33-34) #[[labour]] #[[Hiring]] #Management #[[people decisions]]
    • People-decisions are time-consuming, for the simple reason that the Lord did not create people as “resources” for the organization. They do not come in the proper size and shape for the tasks that have to be done in organization — and they cannot be machined down or recast for these tasks . People are always “almost fits” at best. To get the work done with people (and no other resource is available) therefore requires lots of [[time]], [[thought]], and [[judgment]]. #[[To Ankify]]
  • Script to Send Potential Meeting Participants from Attending Meeting if it is a Waste of their Time (pg. 39) #[[email scripts]] #meetings #attendance
    • “I have asked [Messrs Smith, Jones, and Robinson] to meet with me [Wednesday at 3] in [the fourth floor conference room] to discuss budget. Please come if you think that you need the information or want to take part in the discussion. But you will in any event receive right away a full summary of the discussion and of any decisions reached, together with a request for your comments.”
    • Mark’s Notes: This was a script used by a manager to make sure no-one felt left out and had the opportunity to attend. The manager invited all of these people to the meetings because of the culture in the company of being “in the know”. This message prevents people from wasting their time, while still making sure no one feels left out.
  • On the Risk of Cutting Back Tasks (pg. 40) #Delegation
    • There is not much risk that an executive will cut back too much. We usually tend to overrate rather than underrate our importance and to conclude that far too many things can only be done by ourselves. Even very effective executives still do a great many unnecessary, unproductive things.
  • Three big benefits of focusing on [[contribution]] (rather than [[effort]]) (pg. 70)
    • The focus on contribution counteracts one of the basic problems of the executive: the confusion and chaos of events and their failure to indicate by themselves which is meaningful and which is merely “noise.” The [[focus]] on [[contribution]] imposes an organizing principle. It imposes relevance on events.
    • Focusing on [[contribution]] turns one of the inherent weaknesses of the executive’s situation—his dependence on other people, his being within the organization—into a source of strength. It creates a team. #[[Team Building]]
    • Finally, focusing on [[contribution]] fights the temptation to stay within the organization. It leads the executive—especially the top-level man—to lift his eyes from the inside of efforts, work, and relationships, to the outside; that is, to the [[results]] of the organization. It makes him try hard to have direct contact with the outside—whether [[markets]] and [[customers]], patients in a community, or the various “publics” which are the outside of a government agency.” #[[outcomes]]
  • How to tell if a job is impossible, undoable man-killer (pg. 79) #Hiring #nonperformance #[[Evaluating People]]
    • The rule is simple: Any job that has defeated two or three men in succession, even though each had performed well in his previous assignments, must be assumed unfit for human beings. It must be redesigned.
    • Mark’s Notes: Interesting to keep in mind that jobs like this exist. Jobs are not created by an all-knowing God. Rather, they are created by fallible human beings. It’s an important insight that job may be poorly designed / impossible.
  • Why effective executives try to be themselves (pg. 97) #authenticity #[[comparative advantage]]
    • All in all, the effective executive tries to be himself; he does not pretend to be someone else. He looks at his own performance and at his own results and tries to discern a pattern. “What are the things,” he asks, “that I seem to be able to do with relative ease, while they come rather hard to other people?
    • Mark’s Notes: It would be useful to ask yourself this question on a weekly basis by adding this to your [[Weekly Planning]]. Have a document about what you do with ease that is hard for other people, and review it regularly.
  • The “Secret” of those people who “do so many things” (pp. 100, 103) #focus #concentration #Prioritizing #Productivity
    • If there is any one “secret” of effectiveness, it is concentration. Effective executives do first things first and they do one thing at a time. #[[To Ankify]]
    • This is the “secret” of those people who “do so many things” and apparently so many difficult things. They do only one at a time. As a result, they need much less [[time]] in the end than the rest of us.
    • The people who get nothing done often work a great deal harder. In the first place, they underestimate the time for any one task. They always expect that everything will go right. Yet, as every executive knows, nothing ever goes right.
  • On the Danger of Succumbing to Pressure for Decision-Making (pg. 109) #pressure #[[decision making]] #focus #priorities
    • If the pressures rather than the executive are allowed to make the decision, the important tasks will predictably be sacrificed. Typically, there will then be no time for the most time-consuming part of any task, the conversion of decision into action
    • Another predictable result of leaving control of priorities to the pressures is that the work of top management does not get done at all. That is always postponable work, for it does not try to solve yesterday’s crises but to make a different tomorrow. And the pressures always favor yesterday.
  • Setting priorities is easy…this on the other hand…. (pp. 109-110) #[[Prioritizing]] #focus
    • The job is, however, not to set [[priorities]]. That is easy. Everybody can do it. The reason why so few executives concentrate is the difficulty of setting “[[posteriorities]]”—that is, deciding what tasks not to tackle—and of sticking to the decision. #[[To Ankify]]
    • Most executives have learned that what one postpones, one actually abandons. A good many of them suspect that there is nothing less desirable than to take up later a project one has postponed when it first came up. #procrastination
  • Truly Important Rules for Identifying Priorities (4) (pg. 111) #[[priorities]] #Prioritizing
    • [[Courage]] rather than [[analysis]] dictates the truly important rules for identifying priorities:
      • Pick the future as against the past;
      • **Focus on **[[opportunity]] rather than on problem;
      • Choose your own direction—rather than climb on the bandwagon; and
      • Aim high, aim for something that will make a difference, rather than for something that is “safe” and easy to do.
  • The Elements of the Effective Decision Process (pp. 122-123) #[[decision making]] #Process #[[To Ankify]]
    • They are:
      1. The clear realization that the problem was [[generic]] and could only be solved through a decision which established a [[rule]], a [[principle]];
        1. Ask “Is this generic situation or is an exception?” “Is this something that underlies a great many occurrences?” Four types of occurrences: truly generic (individual occurrence is only a symptom), unique for the individual institution but actually generic (e.g. mergers, happen all the time, but only once for an individual company), truly unique event (rare), early manifestation of a new generic problem. Effective decision-makers always assume initially the problem is generic, and they are not content with treating the symptom alone. #[[5 whys]] #[[diagnosing problems]]
      2. The definition of the [[specifications]] which the answer to the problem had to satisfy, that is, of the “[[boundary conditions]]”;
        1. [[boundary conditions]] usually determined by asking “What is the minimum needed to resolve this problem?” (most difficult step, apparently)
      3. The thinking through what is “right,” that is, the solution which will fully satisfy the [[specifications]] before attention is given to the compromises, adaptations, and concessions needed to make the decision acceptable; #optics #politics
        1. “It is fruitless and a waste of time to worry about what is acceptable and what one had better not say so as not to evoke resistance. The things one worries about never happen. And objections and difficulties no one thought about suddenly turn out to be almost insurmountable obstacles. One gains nothing in other words by starting out with the question: “What is acceptable?”
      4. The building into the decision of the action to carry it out; #action #Delegation #execution #Responsibility
        1. “no decision has been made unless carrying it out in specific steps has become someone’s work assignment and responsibility.”
      5. The “[[feedback]]” which tests the validity and effectiveness of the decision against the actual course of events.
        1. “[[military organizations]] learned long ago that futility is the lot of most [[orders]] and organized the [[feedback]] to check on the [[execution]] of the order. They learned long ago that to go oneself and look is the only reliable feedback.” “Unless [the decision maker] accepts, as a matter of course, that he had better go out and look at the scene of action, he will be increasingly divorced from [[reality]].”
  • Most books on decision-making tell the reader: “First find the facts”. Instead, do this. (pg. 143) #[[decision making]] #[[scientific method]] #[[To Ankify]]
    • Most books on decision-making tell the reader: “First find the facts.” But executives who make effective decisions know that one does not start with [[facts]]. One starts with [[opinions]]. These are, of course, nothing but untested [[hypotheses]] and, as such, worthless unless tested against reality. To determine what is a fact requires first a decision on the criteria of relevance, especially on the appropriate [[measurement]]. This is the hinge of the effective decision, and usually its most controversial aspect.
    • Finally, the effective decision does not, as so many texts on decision-making proclaim, flow from a consensus on the [[facts]]. The understanding that underlies the right decision grows out of the clash and conflict of divergent opinions and out of the serious consideration of competing alternatives.
    • To get the [[facts]] first is impossible. There are no facts unless one has a criterion of [[relevance]]. [[Events]] by themselves are not facts.
    • Mark’s Notes: This is similar to the [[scientific method]] – you always start out with untested [[hypotheses]] (opinions) as the only starting point. But, can’t isolated facts be hypothesis generating? Yes, but you still ultimately start with a hypothesis. Drucker goes on to point out that, as in the scientific method, effective executives encourage opinions, but also insist on having people think through what is the corresponding “[[experiment]]” i.e. how do you test the opinion against reality and what would the [[facts]] have to be to support the [[opinion]]. [[Disagreement]] and [[conflict]] are important, because it helps ensure that you don’t just make a hypothesis and then only look for facts that support it, disregarding everything else.
  • Three main reasons for insisting on disagreement in the decision-making process. (pp. 149-152) #disagreement #decisions #reason #argument #debate
    • It is, first, the only safeguard against the decision-maker’s becoming the prisoner of the organization. Everybody always wants something from the decision-maker…The only way to break out of the prison of special pleading and preconceived notions is to make sure of argued, documented, thought-through disagreements.
    • Second, [[disagreement]] alone can provide alternatives to a decision. And a decision without an alternative is a desperate gambler’s throw, no matter how carefully thought through it might be.
    • **Above all, **[[disagreement]] is needed to stimulate the [[imagination]]…Imagination of the first order is, I admit, not in abundant supply. But neither is it as scarce as is commonly believed. Imagination needs to be challenged and stimulated, however, or else it remains latent and unused. Disagreement, especially if forced to be reasoned, thought through, documented, is the most effective stimulus we know.
    • Mark’s Notes: This is probably why people like [[Tyler Cowen]] emphasize how valuable it is do articulate and argue opinions you disagree with. It’s an extremely valuable [[mental exercise]]. #[[articulating positions you disagree with]]
  • Before you think about who is right and who is wrong, do this. (pg. 154) #[[listening]] #judgment
    • The effective executive is concerned first with [[understanding]]. Only then does he even think about who is right and who is wrong.
      • Mark’s Notes: This is similar to the advice from [[Stephen Covey]] – seek first to understand, then to be understood.
  • Why effective decision-makers don’t hedge bets (pp 157-158) #[[hedging]] #[[risk]] #[[decisions]]
    • The surgeon who only takes out half the tonsils or half the appendix risks as much infection or shock as if he did the whole job. And he has not cured the condition, has indeed made it worse. He either operates or he doesn’t. Similarly, the effective decision-maker either acts or he doesn’t act. He does not take half-action. This is the one thing that is always wrong, and the one sure way not to satisfy the minimum [[specifications]], the [[minimum boundary conditions]].
    • The decision is now ready to be made. The [[specifications]] have been thought through, the [[alternatives]] explored, the [[risks]] and gains weighed. Everything is known. Indeed, it is always reasonably clear by now what course of action must be taken. At this point the decision does indeed almost “make itself.”
    • And it is at this point that most decisions are lost. It becomes suddenly quite obvious that the decision is not going to be pleasant, is not going to be [[popular]], is not going to be easy. It becomes clear that a decision requires [[courage]] as much as it requires [[judgment]]. There is no inherent reason why medicines should taste horrible—but effective ones usually do. Similarly, there is no inherent reason why decisions should be distasteful—but most effective ones are.
    • One thing the effective executive will not do at this point. He will not give in to the cry, “Let’s make another study.” This is the coward’s way—and all the coward achieves is to die a thousand deaths where the brave man dies but one. #research #procrastination #timidity #courage
  • The one area in which [[weakness]] in itself is of importance and relevance (pp 166) #[[To Ankify]]
    • The last question (ii) is the only one which is not primarily concerned with strengths. [[Subordinates]], especially bright, young, and ambitious ones, tend to mold themselves after a forceful boss. There is, therefore, nothing more corrupting and more destructive in an organization than a forceful but basically corrupt executive. Such a man might well operate effectively on his own; even within an organization, he might be tolerable if denied all power over others. But in a position of power within an organization, he destroys. Here, therefore, is the one area in which weakness in itself is of importance and relevance. #integrity #corruption #Hiring #character
    • By themselves, [[character]] and [[integrity]] do not accomplish anything. But their absence faults everything else. Here, therefore, is the one area where weakness is a disqualification by itself rather than a limitation on [[performance]] capacity and strength.
  • Why being an effective executive is good for you (for reasons unrelated to compensation / promotion (pg. 166)
    • The knowledge worker demands economic rewards too. Their absence is a deterrent. But their presence is not enough. He needs [[opportunity]], he needs [[achievement]], he needs [[fulfillment]], he needs [[values]]. Only by making himself an effective executive can the knowledge-worker obtain these satisfactions.