Ch 4: confront the brutal facts

• Facts are better than dreams. Don’t get too emotionally attached to a particular vision or “dream” that you may have for a product. Instead focus on the facts and let the data guide you towards success
• If you have the right people on the team they will be self motivated. If you are finding that you have to spend time motivating ppl then you have the wrong people. Talent over strategy and vision.

Climate where the truth is heard

• Lead with questions, not answers. Understand the entire picture instead of going in with the “answer”.
• Engage in debate. Don’t be afraid of getting into a debate and create an atmosphere where everyone can bring their views and debate. That’s how the company will move forward.
• Ensure that debate doesn’t become coercion. Focus on the ideals while respecting the people.
• Conduct autopsies without blame. When mistakes do happen accept the mistake has happened without fixating on who it stemmed from. As a leader the blame is yours.
• Information is available to everyone. What’s important is are you turning the information into information you cannot ignore. Ie are you playing close attention to red flags and issuers that can explode in the future. Create mechanisms in place that allow you to identify risks before they blow up.

Unwavering faith amid the brutal facts

• Don’t underestimate the power of using a hard situation to build grit and hardiness

Stockdale Paradox

• IMPORTANT: there is a difference between just being an optimist and being an optimist who can take the brutal facts head on. To be successful in extremely tough times, you must have an unwavering faith in not just your survival but also in your success, while at the same time, taking on the brutal facts head on.

Ch 5: the hedgehog concept

• Find the simple and singular defining strategy/principle that will make your company successful and go after that. Same things applies to life
• Simplicity brings clarity. Clarity helps you win.

Three circles

• Simple strategies derive from deep understanding of the three circles; what can you be the best in the world at, what drives your economic engine (ie makes money/profit per x), and what are you passionate about