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Speaker 1: We don't teach people how to lead. It's a skill. It's a teachable, learnable, practicable skill. But we don't teach people how to do it. So they don't do it. Why are we surprised that people don't know how to lead? It's not necessarily because they're bad people. It's that we didn't show them how to do it, right? If we didn't show somebody how to be an accountant, you wouldn't give them your taxes, because nobody showed them they might be able to do it. And even if people are naturally good leaders, it's not natural that they learned it from someone else, their parents, or they had a really great boss that they role modeled. Or maybe they had a really bad boss that like, I'm doing everything the opposite, right? So they still learned it from somewhere. So we have to teach leadership. We do a very, very bad job in the corporate world of teaching people how to lead. And as we promote them, we give them a one-day off-site and we call them leaders, congratulations. Nah, man, it's gotta be regular and ongoing. And we have to build into their incentive structures, into their bonus packages, not just how much money they make but how they treat people, right? It was part of her question before. She's like, you know, we're trying to do this growth, revenue, and also look after our customers. But the order of the information is really, really important. I talked about in the infinite game that there are two currencies, will and resources. In that order, right? I'll give you two hypothetical examples. Hypothetical example number one is a CEO, by the way, I've never met a CEO who doesn't think their people are important. The problem is where on the list. Number one, growth. Number two, shareholder value, right? Number three, our customer. Number four, our employees. See, it's one of my priorities. Number four, right there, right? But that's the problem. The problem is the order. So here are the two hypothetical examples. CEO number one says, my number one priority is growth. And of course we care about our people because without our people, we'll never be able to achieve our financial goals. CEO number two, number one priority is our people. And if we take care of our people, I know we will meet and exceed all our financial goals. Which company you want to work for? It's easy. And human beings are funny. We can't help ourselves. We have a tell, which is we speak in the order. We tend to speak in the order of our own priorities. So when you hear somebody go, you know, guys, we have to be preoccupied with growth and the revenue. Of course, of course we have to take care of our people. Go read the press releases when Mike Duke took over Walmart. He talked about growth, our people. And then you go read the same press release from Doug McMillan. He talked about our people and growth. Go read the press release when Satya took over. He talks about our people first. He talks about human beings first. This matters, right? And this is one of the things that we're suffering in the world today, which is most of the standard business practices that we use today are actually leftovers from the 80s and 90s. A man by the name of Milton Friedman, an economist from the 1970s, theorized the responsibility of business. And he wrote that the responsibility of business is to maximize profits within the bounds of the rules, within the bounds of the law, right? What about ethics? We've all seen companies do very, very, very uncomfortable things, and they get dragged out in front of government, and they all say the same thing. We did nothing illegal, completely within our rights. Yeah, that doesn't make it right just because it was legal. There's something called ethics, right? When a pharmaceutical company raises the price of a drug that people need to survive 500, 600, 700%, there's nothing illegal about that, but it's really unethical, right? And the problem is, is the 1970s, that theory to a new group of investors was really appealing. And so they started experimenting with new ways of doing business based on that definition. And during the 80s and 90s, we started to see that become really, really popular. So the concept of using mass layoffs on an annualized basis to balance the books did not exist prior to the 1980s. And people like Jack Welch over at GE started practicing it, and it started to gain acceptance, and now it's normal. We've either been subjected to layoffs, our company has used those layoffs, or we've lost a friend or a family to layoffs. A friend of a family has been subjected to layoffs. All of us, right? One degree of freedom, if not zero degrees of freedom, right, of separation, I mean. Rank and yank, where we rank people's contribution to stock price or revenue, and the top 10% get promoted, the bottom 10% get fired. That's from the 80s and 90s, right? The obsession with shareholder value and shareholder supremacy, where we prioritize on the wants and needs, desires of an external constituency over our own customers and over our own employees. That's like asking a coach who's trying to build a good team what the fans want rather than what the players need. But that's the standard of business today. That's right. And so the problem is is we need to reject that. It was great for the 80s and 90s. It was great for these boom years where everybody made money. It no longer works. What got us here will not get us there. We have to abandon the practices of Jack Welch and Milton Friedman of the 80s and 90s, and we need to do it our way for the modern day. To your point, we need to build empathetic leaders. We need to build leaders who understand that their responsibility is a human job. We don't sit behind desks and lead a company from spreadsheets. We cannot, because as we've seen, it creates discontent inside our companies. There's no such thing as loyalty anymore. There's no such thing as a gold watch at the end of your career. It doesn't exist anymore. There's an entire group of people in this room who are too young that when I say the word gold watch, they don't even know what I'm talking about. Right? He has no idea what I'm talking. There used to be a time that you worked for 40 years for one company and they gave you a gold watch. Amen. The point is, is there's an opportunity to change it, and the opportunity is ours. The opportunity is ours.
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