10 principles to spot great management teams to invest in
Bob Iger served as Disney CEO from 2005 to 2020.
His best-selling book is a masterpiece in leadership.
It taught me how to identify high quality leaders who I can invest with.
Here's the 10 lessons and quotes from Bob:
Bob Iger served as Disney CEO from 2005 to 2020.
His best-selling book is a masterpiece in leadership.
It taught me how to identify high quality leaders who I can invest with.
Here's the 10 lessons and quotes from Bob:
Some background on Bob Iger
During his tenure as Disney CEO:
- Acquired Pixar from Steve Jobs
- Bought over LucasFilms
- Spearheaded Disney's move into streaming
As long term investors, our wealth is tied to the actions of the company's leaders.
So here's how to spot them:
During his tenure as Disney CEO:
- Acquired Pixar from Steve Jobs
- Bought over LucasFilms
- Spearheaded Disney's move into streaming
As long term investors, our wealth is tied to the actions of the company's leaders.
So here's how to spot them:
1. Great leaders are willing to say "I don't know"
You have to be humble.
You can’t pretend to be someone you’re not...
Or to know something you don’t.
You’re also in a position of leadership, so you can’t let humility prevent you from leading.
You have to be humble.
You can’t pretend to be someone you’re not...
Or to know something you don’t.
You’re also in a position of leadership, so you can’t let humility prevent you from leading.
You have to ask the questions you need to ask.
Admit without apology what you don’t understand
and do the work to learn what you need to learn as quickly as you can.
True authority and true leadership come from knowing who you are...
And not pretending to be anything else.
Admit without apology what you don’t understand
and do the work to learn what you need to learn as quickly as you can.
True authority and true leadership come from knowing who you are...
And not pretending to be anything else.
2. They are comfortable with failure
I didn’t want to be in the business of playing it safe.
I wanted to be in the business of creating possibilities for greatness.
If you want innovation—and you should, always—you need to give permission to fail.
I didn’t want to be in the business of playing it safe.
I wanted to be in the business of creating possibilities for greatness.
If you want innovation—and you should, always—you need to give permission to fail.
3. They know how to bring out the best in their people
Value ability more than experience.
Trust that things would work out if you put talented people in positions where they could grow...
Even if they were in unfamiliar territory.
Value ability more than experience.
Trust that things would work out if you put talented people in positions where they could grow...
Even if they were in unfamiliar territory.
4. They take time to develop other capable leaders
At its essence, good leadership isn’t about being indispensable.
It’s about helping others be prepared to possibly step into your shoes...
At its essence, good leadership isn’t about being indispensable.
It’s about helping others be prepared to possibly step into your shoes...
Giving them access to your own decision making.
Identifying the skills they need to develop and helping them improve.
And as I’ve had to do...
Sometimes being honest with them about why they’re not ready for the next step up.
Identifying the skills they need to develop and helping them improve.
And as I’ve had to do...
Sometimes being honest with them about why they’re not ready for the next step up.
5. They pay attention to the little details
The success or failure of something so often comes down to the details.
Sweating the small stuff shows how much you care for something.
“Great” is often a collection of very small things
The success or failure of something so often comes down to the details.
Sweating the small stuff shows how much you care for something.
“Great” is often a collection of very small things
6. They clearly articulate the focus of the company
You have to convey your priorities clearly.
It’s what separates great managers from the rest.
If leaders don’t articulate their priorities clearly...
Then their people won’t know what their own priorities should be.
You have to convey your priorities clearly.
It’s what separates great managers from the rest.
If leaders don’t articulate their priorities clearly...
Then their people won’t know what their own priorities should be.
7. Both customers and employees love their products
My goal is for Disney to be the most admired company in the world...
By our consumers and by our employees.
That last part is key.
We’ll never get the admiration or the public unless we get it from our own people first.
My goal is for Disney to be the most admired company in the world...
By our consumers and by our employees.
That last part is key.
We’ll never get the admiration or the public unless we get it from our own people first.
And the way to get the people working for us to admire the company and believe in its future is to make products they’re proud of.
It’s that simple.
It’s that simple.
8. They have a capacity to suffer
Too often, we lead from a place of fear rather than courage...
It’s hard to look at your current models, sometimes even ones that are profitable in the moment...
and make a decision to undermine them in order to face the change that’s coming.
Too often, we lead from a place of fear rather than courage...
It’s hard to look at your current models, sometimes even ones that are profitable in the moment...
and make a decision to undermine them in order to face the change that’s coming.
The investment community so often punishes established companies for reducing profits under any circumstances.
which often leads businesses to play it safe and keep doing what they’ve been doing.
rather than spend capital in order to generate long-term growth or adapt to change
which often leads businesses to play it safe and keep doing what they’ve been doing.
rather than spend capital in order to generate long-term growth or adapt to change
9. Pick markets with great re-investment opportunities
My former boss Dan Burke once handed me a note that said:
Avoid getting into the business of trombone oil.
You may become the greatest oil manufacturer...
but the world only consumes a few quarts of trombone oil a year!
My former boss Dan Burke once handed me a note that said:
Avoid getting into the business of trombone oil.
You may become the greatest oil manufacturer...
but the world only consumes a few quarts of trombone oil a year!
He was telling me not to invest in small projects that would sap my and the company’s resources and not give much back.
I still have that note in my desk...
and I use it when talking to our executives about what to pursue and where to put their energy.
I still have that note in my desk...
and I use it when talking to our executives about what to pursue and where to put their energy.
10. Embody the values
As a leader, you are the embodiment of that company.
Your values, your sense of integrity and honesty, the way you comport yourself in the world—are a stand-in for the values of the company.
what people think of you is what they’ll think of your company
As a leader, you are the embodiment of that company.
Your values, your sense of integrity and honesty, the way you comport yourself in the world—are a stand-in for the values of the company.
what people think of you is what they’ll think of your company
That's it.
All the above lessons and quotes are taken directly from Bob's best-selling book:
The Ride of a Lifetime
It's helped me understand how to spot great leaders...
So I can find great management teams to invest in.
All the above lessons and quotes are taken directly from Bob's best-selling book:
The Ride of a Lifetime
It's helped me understand how to spot great leaders...
So I can find great management teams to invest in.
Recap:
1. "I don't know"
2. Comfortable with failure
3. Bring out the best in people
4. Develop other leaders
5. Attention to little details
6. Clearly articulate priorities
7. Both customer & employee love
8. Capacity to suffer
9. Markets with opportunities
10. Embody values
1. "I don't know"
2. Comfortable with failure
3. Bring out the best in people
4. Develop other leaders
5. Attention to little details
6. Clearly articulate priorities
7. Both customer & employee love
8. Capacity to suffer
9. Markets with opportunities
10. Embody values
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