False Gods

Money makes money. This allows wealth to compound (the growth also produces), if not everything that is produced is consumed. If some of the fruit is planted, and given the space to grow. This is both powerful and dangerous. Ideally, you want to fail hard and memorably early on, to knock the delusions of grandeur out of you. You do not want to be that false god who complains that the (clean and comfortable) guest room is not up to the standards to which they are accustomed. Because if you do not regularly suffer some misfortune, chances are life will one day smack you hard and repeatedly in the face. Probably when you are managing other peoples’ money. As Mike Tyson said, “Everyone has a plan until they get punched in the mouth”. You cannot just judge yourself on how your path has played out. You cannot judge others without looking in a mirror and reflecting on your potential unwalked paths. We are communal animals, and every path is an alternative reality. One you could have easily been on. The key is not profit making and ego building. It is reinvestment, and building buffers and capacity for whatever punches are thrown.

Nergal Gate in Ninevah

Win-Win at Scale

Before Amazon, Netflix, Google, and other big disruptors entered the world lived Sam Walton. The founder of Walmart realised that you aren’t trying to maximise profit on every item you sell. You aren’t trying to maximise price. You have to look at the big picture and give your customer a good deal.  By charging lower margins on the stuff he sold his clients, and really understanding both their needs and how to get them a good deal, he combined Win-Win economics with scale. When people speak of “Meritocracy” for companies, and principles of excellence they are still looking after themselves, their container, and their spot in that container. They will look for people to join them that improve the merit of their container, but not at their expense. Very few people are that self-less, and the goal isn’t that noble. Stepping aside for someone who is smarter and more effective than you is hardly philanthropy. You would only do that if you are an owner. Similarly, part of the challenge with transformation is hiring people that companies fear will leave. Loyalty trumps merit. People hire people like them who like them. Then knit their lives together. The only way things will transform is with bigger containers we trust, and feel a sense of ownership in. Win-win at scale.

Sam Walton

Sustainable Growth

A focus on short term profits is doomed to fail. The energy is in the wrong place. Profit isn’t the driving force of wealth creation. Reinvestment is. The Business Graveyard is full of stars that shone bright. Sustainability is the real driver of wealth creation, because the magic comes from compounding. Taking profits, yes, but putting them back. Putting them to work. Again, and again, and again. Which is why sustainable profits aren’t sneaky. Both parties need to get a genuinely good deal, with full transparency. Sustainable Growth is about building systems, institutions, communities, relationships and value that endure. Sustainable Growth is about building the resilience to look at both short term losses and short term gains with the same Poker Face. To see the fundamental long-term value creation through the noise. Sustainable Growth is about connecting the past, to the present, to the future.

Profitability and Creativity

'The best way to make a small fortune is to start with a small one.' Someone's visible signs of success are not necessarily a good indicator of the underlying changes. The direction. The growth. Creativity is complicated, ambiguous and confusing. It can't always be counted. It needs a deep understanding of needs and wants. What it means to be human. What it means to be alive. 'Forward' steps face random changes and can only be known in advance if the thing has been done before. Known steps aren't creativity. Underneath everything, creativity is our contribution. It is our creation of meaning. Our purpose. It determines whether we are consumers or custodians. Whether our activity actually takes more out than it puts in. Whether our winning requires someone else's losing. Taking versus making. Creativity determines the why.