20 Episode results for "Jack welsh"

David Cote | The CEO of Honeywell Who Grew the Company from $20 Billion to $120 Billion | How Companies Can Win in the Short Term While Investing in the Long Term

Thrivetime Show | Business School without the BS

50:29 min | 1 year ago

David Cote | The CEO of Honeywell Who Grew the Company from $20 Billion to $120 Billion | How Companies Can Win in the Short Term While Investing in the Long Term

"All right, but he's a gentleman. It's now time for another exciting edition of the thrive. Time show we're on today. Show we interview the former CEO of money well, who grew the company from twenty? Billion Dollars to one hundred twenty billion dollars in market valuations. Today's show. He's GonNa. Teach you why you should mystery shop your own employees. His thoughts on speed golf, and how to achieve great short term results and great term results simultaneously while stressing the importance of wanting to yourself. Prepare to be emotionally disturbed many times. You're GONNA have a good time so every three to one and go. Get ready to enter the drive time show. Now on the top. To give what we got couldn't. Books hop on the books sees bringing some wisdom and the. At. Bats I'm a dive, so if you see my kids, please tell them CNC. Now three to what he? Yes, yes, yes. Yes, Dr Z. I was. Doing some research today ship. And I was taking several minutes to put together some of the deepest research. I could possibly do for the show. And I was I had conversation with you I said Doctor. What's bigger, a billion or a million? Never, really had I've never really had time to to get closure on it. Take what what what number is bigger Sir what? What. What numbers bigger the billionaire the million I'm GonNa go with choice. A I might even to phone friend I'm with. Okay thank. You get one point, sir, thank you so much for clearing. Not A. Lot of public school here now now today show folks. We have a former CEO. We have a guy who led a billion dollar company David Cody. Time show. How are? Very good to be here sounds like it's going to be interesting one. I have to ask you just asking about the word. MAKES ME, nervous! How big was honeywell? How big did you help to grow honeywell to what what? What size? Well auto sales basis. We took it from. Two billion to forty, two billion, and in terms of value. so that Stock Price Times number of shares so total market capitalisation. We took it from twenty billion to one hundred, twenty billion. That's a lot of cats. A lot of. Mega Point Sir well done well done, and I know you did it for the mega points. Before we just want to ask you, what is it like on a daily basis being the head of a billion dollar company I mean the. Experience a lot of pressure. You find yourself talking into a box fan to calm yourself down. I, mean due what what's up. Well first of all. I love my job. It was to your point very tense. say that I ever felt stressed. The mid were those times where there's a more anxiety than others, but I mean. I can't say that. I was unable to sleep at night or anything like that. But I spent Oh. Let's see five to six hundred hours a year on the plane traveling around. That's the equivalent of like. Twenty three twenty four hour days just while the plane. Just visited over one hundred countries just to meet people meet customers. Talk to employees that kind of thing. When I was in town, I get up at six forty five. And I'd be in my car at seven o'clock driving to work so that I could get there by seven ten. FOR BREAKFAST! I always had two extra large Dunkin donuts copy and a cigar, which is probably not recommended healthwise by. Dr Here, but that's healthy living right there. Is certainly served. Get me going for the day. And I made a point of exercising at the end of the night so even if it was. Eight eight thirty. By the time I got to the gym. I would still exercise forty five to sixty minutes. Just as a way because I find it, it was a good stress. Reliever made it easier to sleep at night and just got rid of a lot of energy. Sir. Where did where where did you come from a? Success you're talking about building a billion dollar business growing into one hundred and twenty billion dollars market cap that that is just that's a lot of money. Where did you come from? What was it like growing up? While mine was. I Guess Atypical in terms of what people expect a kind of a CEO background is going to be but. I I was the first one in my family to graduate from high school. My mom had two days. My Dad in an a one year secretarial of course and my dad's six months. I grew up in a little. French Canadian textile mill enclave in new. Hampshire called SON car. Where I spoke only French till I was three years old. I didn't speak any English at all really and. And? My French is D Gillette best now. So. We didn't have role models and. My mom always said. You know she was she. My Dad had been able to give me. Better advice about what to do next, but they didn't know there was nobody to ask. Other thing we did do though is I got? Great values from them I thought then appreciate it at the time, but as I got older I did, and often that times asked. Where did WHO's the leader that most influenced you? Where'd you aren't all your leadership lessons? And say the same thing you know my mom and dad, they really instill the right kind of values, and those values were useful as a kid. They're useful as an adult. I was casting around. I hated school. Couldn't wait to get out and do something accomplished something, but I had no idea what, so. I had a lot of ambition, but absolutely no direction. So I quit school before I got there, it was supposed to go to University of Hampshire and I quit for a year. Trying to become a mechanic tried to become a carpenter and. Realized that I had absolutely no aptitude for any of it. So I figured okay. Better go back to school enlisted in the Navy, and then backed out the day before I was supposed to swear in to be on a nuclear sub for six years. Managed to get myself back in school after two years. And Sick. I'd never having any money, but the assistant dean of students call me to her office and. So there's no longer be allowed to live on campus any longer. 'cause and I said well. What I do I had of course my jeans. Flannel shirt and long hair, which was the thing then? And I said what I wish, they won't know one big thing. You just jumble troublemaker wherever you are, there seems to be trouble. You could tell them still pretty proud of that. Shopping forty five minutes later. I'm still proud of it. So I started working nights. Going to school during the day and then I quit for another year with body to. Become commercial fishermen off the coast of Maine with our own bow. To abandon ship. and. That didn't work out so well, and he got married, and his wife basically said you're not gonNA. Keep fishing with that friend Apprentice Yours Iowa and You said okay. You know as new wives I think have a tendency to do. So we I got married and. I month I'm home. wife comes home and says pregnant for months later says I can't work anymore. And we're living in this unheeded I'm insulated apartment in new, Hampshire, which means yes, it gets cold at night. I did the math and realized that on my salary running a punch press. I was making two dollars a week less than I was spending. And I realized I had one hundred bucks in the bank, so I said okay. I got fifty weeks to figure out what the Hell GonNa do. The only thing I was good at. I went back to school and as you might imagine I got four on that year instead of the. Normal three Oh, I was able to Kinda get by with without doing anything. Still Work Nights then managed to get a job at g. e. and the finance terrier. Spent Twenty five years. G kind of worked my way up to running the major appliance business in Louisville Kentucky. Wanted TRW for two and a half years became the chairman, CEO There and. Two Thousand Two winter honeywell to because the same. David! David. Off. Chack. Did you meet? Captain Jack Jamie Jack Welsh. Oh. Yeah, he was my boss. Second. Sorry. Amount. This man. Yes. I can't handle him so excited. So you? What was it like to? Jack is your boss. Well. Even better. He's the guy who fired me. Here's here's. Here's. Here's here's how. Badly Music Here's outgoing like Jake. The best throws. Tackle. Scotch whisky right now. I'm like you're the past is like you're begging me kid. GET OUTTA here fire. Just that hype fired. Walk US through it. Well it was. June ninety nine and I got a call from a guy. Saying Jack would like to have dinner with you. With the Yup exactly, and that was my feeling also, so I got there. And First thing he said was Dave I. Want you out of the company by year end. And I said okay walk. In and I don't remember what what kind of drake we might have had, but. and I said well. What did you see that you didn't like or didn't see that you wish you had? In his voice, just elevated, and he said don't understand I want you out of the company by year end. I said Yeah I. Know, but I think I'm better than you think. I am so there's something I need to address. I'd like to know what it is. Voiced got even louder, and he said you don't understand I. Want you out of the company by Iran. Right got it. I never did find out. To. Did you spend time with Jack before going out to that bizarre dinner with Jack Welsh. Not a Lotta time business reviews and that kind of thing I mean definitely knew him I worked for him. He was my boss. So what were what was? What was it what you're sitting down with Jack Welsh for a typical review or for a weekly meeting, or for what? What is the interaction like with? What was it like with Chelsea? highly variable. So it could be like I used to say, he could be the most. Charming person in the world if he wanted to be. And then he could be the most material emotional guy you ever run into. Where you kind of sit there wondering. What where's this going? What are we what we talking about? It doesn't even make sense to me anymore. This is just emotional. It was one of the things that I'd say. I fault myself for is not understanding. the emotional side of them. I always figured it was just kind of stick as a way of trying to get people to do things. And then ended up realizing they'd Ronnie really was like that. If I'd had a better understanding. Read them a little better. I think my might have been different now. We worked out just fine. You gained traction. Just want to ask you. When was the time where you? Thought Man, this is working out and then I want to get into your book and Josh Wilson's here. He's growing. A company called living water irrigation. He manages a lot of people who businesses grow and he's got questions doctors. Z. Has questions but I just to ask you. When did you feel like you were starting to gain some traction? At Honeywell with your career. What did you think man I? Actually am going somewhere I'm moving up the corporate ladder. Baby I can see it happening. Didn't. That didn't happen early on 'cause early on, I had no career. Aspirations other than to make more money than the last job. 'cause I was desperate that we were every week. I was figuring out which bills I could afford to pay which ones I could let slip and I hated living that way. And my goal was just take. Whatever will pay more. and. What was an accelerated for me? Was An interaction I had with Jack when I was I. Don't know about thirty four years old I guess. And I had to I I was responsible to separate things. One I was responsible for sending out a strategic plan requests the financial templates that. All the businesses had to fill out. This was like nineteen eighty six. And Separately I been assigned that month to do Jack. Welsh, is board pitch, which was the first time I've ever had to do that. So! I have to send out the strategic plan request I recommend to my boss and all my Team. Members fellow employees. that. We not send it out because we don't do anything with it. I was voted down by my boss and everybody so I sent it out. A couple of months later I. Get this phone call for my system. Saying Hey Jack. Welch wants to talk to you so I. Get Myself Mentally Prepared Thinking okay What's the Status Board Pitch? That's what he wants to know. And remember this nineteen, eighty six I pick up the phone and he said. Day Is it true. We asked the medical systems business for what the ROI will be in the ultrasound business in one, thousand, nine, hundred, eighty nine. And I'm just standing there. Thinking where the hell is this coming from I, I have no idea where this question is coming from scrambling. And after a couple of seconds, but said Oh we might as part of the strategic plan requests. He came through the phone at me. And with all the. Any curse word. You WanNa pick. feel free to interject. And he said I wanNA see right away so I got it together ran up to his office. He haulers for me to come into his office and. The next fifty minutes he just yelled at me and asked me. Why do such a stupid thing and cursing at me and flipping through the pages just to irradiate himself and. He finally says all right you on your job. I'm not kidding. He finally said you've done your job now I'm GONNA do mine? You can leave. So okay so I walk out and when home call my wife. Went to the office. Call my wife Times I. Think I've been fired. I'm not sure how this works, but you know. I think I've been fighting. They talked to one of my buddies. He's first question was you didn't tell them that? you recommended against it and we voted against you, did you? Now I I didn't do that. They said Oh shoot. You know thanks. So, it's a couple of months later. I don't hear much anything couple of months later. I met an RCA acquisition party and I had been a will finance guy on the team and I walk into the Party and. Also the here Jack Holler Dave. Dave get over here. And I think son of a gun heard all the stories, but he's GonNa fire me at a pie can't believe it. I go walking over there. My buddy comes with me and. I got a smile on my face, but inside I'm just turning. We get up there and he said I need to tell you Dave. I was never so pissed at anybody since I was in plastics. And I can be a little mouthy, and I said well I really appreciate your share it with me. And he thought he thought that was pretty funny, so we started laughing and talk a little bit and. Then, my buddy said you know Jack. Dave wanted to send out that request. He recommended against it and we all voted against him. And I still remember Jack turned to me and took like the inside of his fist and put it into his ribs, said so you just? Just a nice of those guys. I really look at it that way you don't. You don't rat on your friends like that. It's not like it was anything illegal or anything. He just shaking his head and going. Wow, okay, wow! So fast forward, a couple of hours get to the end of the night cfo pulled me aside and said. You have no idea how much good you've done yourself with however has got handle. As well I am hard. Pressed to figure out. How because it hasn't felt very last couple. Well, That's true. and. He said no Jack was already impressed with how you handle the discussion with him. Because he said he made, he has made vice presidents. Cry With the way he was yelling at you and. said. You never wilted in that impressed. The second one when he found out that you didn't throwing your buddies well good things are going to happen to you well and dear. I used that used to be that if you got a one level jump. This levels were a big deal. It was good to levels. You're on fire. And all of a sudden Jack had me interviewing for jobs that were three and four levels above where I was. And I got on his radar screen and he was a huge acceleration. Me That that really propelled me and started me thinking that maybe I can do bigger things. David, do you? Want No oh, great story, do you? See some hot questions for Josh. Wilson does to coming up in just a moment. I just want to ask you. Do you do a Jack Welsh in? Kind of a Jack Welsh stick or Jack Welsh impersonation. Can you do that? And that good. I barely can impersonate myself. Okay okay, and then based on the way that you say your our. Do you love Bill Belichick? Patriots Bill Belichick Bob Kraft. Tom Brady. Yes I know he's A. your level wall. Yes. How? How often? lobster. As often as I can, and even though we live in Florida, we've arranged love with a shipping company in Boston, but ships wants to door. Real thing. Brady went down. He's following new following. God. We'll see what questions do you have for? David? Cut Him this guy think about it. He has been fired directly by Jack Welsh. He's also grown a company from twenty billion dollars market cap to one hundred and twenty billion. He's added the blows the highs. What questions do you have before? We start interrogating him about his new book? Well I think what happened is we have a lot of listeners out there and a lot of people I mean our main thing is how to start grow a business and I guess whenever it's not your business and your charged with growing it. Did. Did you feel a sense of ownership? And any of those? In which one did you for the most ownership of and give me a couple of high points in contributed to growing those? Why I always felt ownership. And I, it's one of the points that it used to make about any CEO any leader. Is that you had to approach business as if you owned it and with any decision that you made for anything. put yourself in the position of saying okay. I own one hundred percent of this company. What's the right thing the smart thing to do? Not. Sorry we're been. I said sell it by an island. Sorry to interrupt. Please continue David. I just found that it was a great way at least put me in the right kind of frame of mind to make make any decision. Are the second thing that I recommend to anybody. Is it's very easy to confuse activity with results. And there's a lot of people who start to see like well, you know. I'm working really hard working eighty hours a week, so it should yield something. But it goes back to my fishing boat experience when let's Say I was an entrepreneur poor one, but I was. And people would say you know must have been a great learning experience. Yes, must have learned a lot they get. What was your biggest learning? My biggest learning was it hard. Work doesn't always pay on. If you were working on the wrong thing. It does not matter how hard you work. Nothing's GONNA accommodate it. So anybody working on their own business? Make sure you're working on the right thing. And I was really impressed with a story ridden. Inc Dad got thirty years ago now about the guy who founded Sam Adams. And he was getting started, and his dad said so. What are you doing today? They said well. You know I'm not getting a computer getting up getting all my books. Set up so that I can manage the company. It his dad said. Do you have a customer yet? And he said No. Dad said well. Don't you think you should work on getting a customer before you worry about getting their books right? And I thought that was a great insight. Yeah, to how do you make sure you're focusing on the right thing? It's too easy for people to confuse activity with results. That right zero. I'll tell you what we think next book. Book we go back after the show. We do a lot of editing to the. House that right. There has to be the interim pastor I mean that's that's good stuff. Good. David Uber Tattoo of that idea. I mean you have a like all the kids today. The kids are getting tattoos debut of a tattoo that says quit wasting your time working on the wrong things. No, but I promise you. I tell a lot. 'CAUSE I. I used this a lot at honeywell, and whenever somebody would talk about something. They hit, Don and I'd be talking about the result and they'd say well, you know we really worked hard on this. We've been working one hundred hours a week. And I would say well. You know I can't put in the share. Owners letter that our financial results are flat, but everybody's working really high. They don't care. You need to have results, so whatever were doing. You're focusing on the wrong thing, so figure out what the right thing is. That is power. It's a very. It's a very human thing to do is to. Figure! Okay. I've really busy doing a lot of stuff so as long as I'm really busy doing a lot of stuff, and this is going to be great. Well, it's not working on the wrong thing. It doesn't matter how hard you work. David whatever you fired a high level guide honeywell. Because I'm sure you've fired several. Did you dinner move? The more of A. Hey, bobby, bobby hey. donuts cigar and let's meet at Dunkin. Lunch move. Kind of sandwich from subway alley I mean. What is what was your move on fire? It would depend on the circumstances, and never get it over dinner because I thought that was. A little a little silly. Tell you the truth. Eat dinner with the. Now it's GonNa Weird yea flip. A FUN activity. And confusing with it's like having a party at a funeral just. Diet don't seem to. So No I. I never did it that way. I try to. Have the. Occasion get handled with a of right grace to. Get the point across, but do it in his civil in his respectful away as you could. Never you a glazed doughnut, or are you a cake Dona? old-fashioned, or would you mix it up? Pathetically I like all donuts and almost all muffins it seems. To. ME, that I. Am More careful about that stuff then I wanna be now. David as you know. When you run a business at some point, you have to go from me. You grow from me to week, yes. So to give context here, David Josh had a company that was a startup put five years ago, maybe three little three three years ago and now he's doing three hundred thousand dollars of sales last month. So you see the growth is taken off. It's an irrigation company and a Lotta times when you tell people what to do. They might not do it. You got to manage people, and you are an expert of managing people and so I'd like to know, and then I'm going to get to Josh here. Where do you see small business owners or business owners or middle managers managing poorly, and what what? What can we do to become better managers get give us some tips. Sure. Well first of all congratulations on your success. That has to feel pretty darn good, so thank you. I really appreciate it. Thank you grow the. I have a lot of respect for entrepreneurs and what it takes to. Get a business started. My youngest son has started his own business and. I've seen with. That's what when he spent. A year and a half in A. Eight by ten windowless office, trying to get something started and going and. It worked I. Can tell you I i. do understand the pain associated with it, so congratulations boom. In, interestingly When I when I went from Tier W honeywell. I got a question from an analyst and he said Gees Yussef seventy five thousand people now you have one hundred fifteen thousand people how you going to manage that increase. And I said well, that's not that hard. Really I didn't know the seventy five thousand. I'm not going to one hundred fifteen thousand it really. Is Irrelevant. said the toughest transition was going from being an individual contributor to having three employees. Because that's the first time you have to figure out. How to get things done through other people and make sure those things get done, right. And that is not an easy transition for people to make because you know how you do things you know how things happen when your responsible. And you start to feel that okay. Everybody else is GonNa be the same way. They're not. Wow. There's different kinds of ability and there's different kinds of motivation. And I found to failure modes. One is where people say well. I get good people and I delegate. And I call that abdication not delegation. The second one are those people who feel like they need to be into everything and everyone knows that one is micromanagement. The trip to success is yes. Make sure you have really good people who understand what it is. You're trying to get done and They'll do it. But also figure out okay. which person needs an hour week? Follow up which one needs five hours a week. FOLLOW UP! There are some people who them to. Improve something. All you have to do is say you know you're capable of better work than this. There are others where I used to bring him in my office and say I'm hitting you with a two by four, and I'm telling you. I'm hitting you with a two by four, because you seem impervious to suggestion that I'm using a two by four. And learning those things and saying. Because some people like to say look I'm the boss. People need to the me. Okay. That may make your life easier, but it's not gonNA. Make you more successful. Because you're only going to be successful if you get good people. And you're able to monitor them to the extent, and you need to figure out which ones needs to be monitored more than others, but then also you figure out okay. What floats your boat? What makes them feel good. Some of them want to spend thirty minutes telling you what they did. Others want no involvement. From you and figuring out, okay, what is that? How do I handle each person to make this? Successful. Makes a difference. The last thing I would add is Yes, you have to pay people well. And that that. All all in favor of and people ought to be paid well if they do a great job. But by the same token. People WanNa to go home at night. Being able to brag to their spouse and kids about what they did that day. And to the extent you can make the work fulfilling. And it's not just praise for everything know everybody gets a trophy. But making sure that they feel like they accomplish something during the day or the week or the month. And that you appreciate it, you recognize. Man That makes a big difference I guess last one I would add is if somebody's not doing a very good job needs to tell them and they need to fix it. because. It's not just that person who is not doing well. But, at least a third of the organization will measure themselves based on. What are you doing about that person who doesn't do a very good job? And I learned this one when I was an hourly employee. We had a guy who was a poor performer, and we all knew okay, if they don't do anything about that guy, then as long as we're better than him. We don't have to worry. Well all of a sudden one day. They fired that guy. Oh you do next. You look around and say oh. WHO's low guy now? And elevates. The entire organization. Poker if you don't know who the fishes at the table, you're the Fisher also. Go, bear hunting. Make sure take a slow guy with right so. Josh what yes? Sir David, thank you for the kind words first of all, but right along that vein and that I think that's why clay started. This line is A. He's obviously my business coach, but so we're going from. A handful of people to a lot of people very thankfully, so do you stylistically manage different for managing people to managing managers now? My role has been more with our division managers as opposed to each individual on a daily basis. Is there a? Key or a couple few points that I could express our bore down on as far as managing managers, instead of managing people are still the same thing for you David. I. Guess it some of the same, but. You still want to make a fulfilling for people but I'd say the big thing is a. don't lose touch with what's actually going on out there. And if you're just relying on what you're Beta, tell you. a couple of things can happen. Both involving a you not getting accurate information 'cause I. They lie about stuff, or they don't know what's going on, so they just kind of make stuff up. And it's one of the reasons that spent five suspended hours a year out of the plane. And I go tour. Plants talk the hourly employees I'd go to visit customers with sales people. and. It was my way of finding out what the Hell is actually going on out here, and is it consistent with all the stories that I'm hearing from my guys? And! It's remarkable what you find. the other thing I would do in a my guess. Is this very well for you? Is? That would make surprise visits to locations I wouldn't tell my assistant where I was going. And I would just have. Them dropped me off at the city. I'd get a rental car. And I drive to a plant location. Show up at the door. Say Hi, I'm Dave Cody. I'd like with the plant manager. And then tour the facility. Because no, then you're seeing I'm biased. You're finding out exactly what's going on and you can. Observe for yourself. Is this consistent with what I'm looking for? And what I'm hearing from my guys? But I think the big thing is, don't lose touch with the people who are actually doing the work out there. Take the time to talk to them about. What do you like? What are you, Hey? What. What about the job could different? What suggestions do you have about what we ought to do differently? Don't lose touch with those folks did David. Do you golf? Not Very well, but I do this. During this next portion of the show I want you to picture. This is the I want you to picture this. Picture picture this. DRAW UTAH. Beautiful Golf Course. Echoes. Got Beautiful Golf Course of course. And you get ready to whack the golf ball. And they they opened up a cage. And you look at your laughing and you say. Why is there a cage? And you hear a lion, and then the caddy he says. Let Rip and he opens up the cage and the lion begins to chase you down the course. And you. This is how this next this next segments could feel David somebody go rapid fire. Okay, we're. We're unleashing the lions here. I'm going to keep the questions coming in fast coming in hot, we'll see if we can stump. A man who grew it comes from twenty billion dollars to one hundred and twenty billion dollars, as the CEO of Honeywell says the I'm right here. We go your new book. Your new book is called winning now winning later how companies can win in the short term while investing in the long-term? Sir What inspired you to write that book. Walk up little things. I got Inputs is various as Barack. Obama former president and Hank Paulson former secretary of the Treasury to say Gee, you know what you get in how you did. It is worth writing a book about you really need to do this so I got. Really good Let's say support do it. The, second thing was i. kept reading about all the comments. People had about short termism and how bad it was and. They all made it sound like it was mutually exclusive. You were either short term or long term for. and. I always thought that was the wrong way to think about it because we ran honeywell. On this principle that success is about achieving two. Conflicting things at the same time. And you want low inventory or good customer delivery. Do you want? People closest to the action in power to make quick decisions, or you want good controls, so nothing bad happens. You want good short term results, or do you want a good longterm results if you're in the? Irrigation business you want them. To, be able to finish a project in an hour and a half instead of two hours, or do you want it done, right? The answer is of course you want right and fast. So the trick is how do you do that? And that's what the whole book is dedicated to is How did we do that at Honeywell out? Did we achieve two seemingly conflicting things at the same time, and that is good short term results and good longterm results. This is something David I'd like to propose this as an idea kind of A. Dream mandate for me. I'd like to come out to Florida and introduce you to the game of speed, Gulf where we compensate for lack of skill with violent urgency refocused on the long term, but also in the short-term. We don't WanNA. Get eaten by a lion, and so we'll start with the rabid dog. More. Baby. Squirrel like maybe. Rabi Raccoon. So now that we've asked the deep questions about speed golf What questions do you WANNA ask? He's an incredible new book has winning now winning later how companies can win in the short term investing in the long term? He's an author. He's grown businesses. What questions do you have to go back? Undercover boss move? Oh, I WANNA go back to back in time back and introduced himself as Dave. Cody and so Mr Dave Cody. What was the biggest? I mean you had when you showed up, but they didn't know you're coming and when they had just. Freak out. You can't tell me they didn't have the absolute freak freak show. So, what was the biggest like when you showed up when these? Companies one of these factories. What was the biggest lie? Oh. Oh moment. Did you have a couple of hours? The moments yeah. Because that's pretty cool by the I'm. The first time I I get it. And I got this story in the book interestingly, I went to You know the receptionist. And, now it's too I was in I, wanted to see the plant manager, and she didn't know who I was good so She called the plant manager and said Hey, there's somebody out front here. Name was Dave Cody said he wants to see. You said he's CDL. And I got reaction to come down and. The reason I had. Done the surprise visit. was that we had a fatality at that plant a couple of months earlier who? And it was a chemical plant. Then, I had our health safety. Environmental People kind of all over it. And I thought okay I I WANNA. Make sure this. This really bothers me I. Really WanNa make sure We have safe places. I'm GonNa make a surprise visit. So I toured the facility that the union leaders, and then at a meeting with the staff. And ask them. What happened here? And why did it happen here? And people on the staff started to explain to me that chemical plants were inherently dangerous. And that this could happen anywhere and that they were just unlucky. And interesting I was just incredulous. And finally you know. I listened to it a lot just to make sure I understood where everybody was coming from and I. Finally ended with saying. Do you folks understand? A man died here and. This I. Think could have been preventable. and. We need to do something differently. And that was an unbelievable for me as you might imagine, we turned over all the leadership there. And it became a model plan. Did the sort of stuff you find when you actually go out there by on your own to actually see what's going on, so that was definitely an hour for me, so a lot of dinners followed that meeting. Is that what you're saying David? I have some tough questions Z.. You know one of the things I do. There's a lot of a lot of news right now. About the FBI investigating well, there's a lot of people being recorded without their consent. There's. Areas stuff going. I thought I would. I would pile on, and I would do some deep investigative journal, the deep deep diving, and didn't investigating before having Dave on the show well I. wouldn't so I went? David wind where you really in the in the peak of your leading hunting. Well. What what years were you really just in your full stride? What what years? Oh I would say right at the end I was. Definitely. A feeling good about it and things were going really well and twenty seventeen house, but onto a guy who's taking it to new height so well I. I'll tell you this I went in I. Didn't ask didn't know we'd get him on the show. Okay? I went into the office. miked everything. And Move I did and Mike some stuff and I think this might be audio for David telling the team how to prepare for future recessions and I wanted to know if this is actually audio from you instructing your team, and if it might not be audio, let me let me cue it up real much so many. So much audio. Let me get let me just I gotta get the right section now so has David walks in, and he in one of the employee's has discovered. The recession is coming, or there's shutdowns coming, and he made a poor call. So this is data trying to get him to calm down. I believe this is played. It's it's tough to get this audience. What job cartel you. They will I'll you're? Looking at. You WanNa talk. I can. Sir. Why would you behave like that? I think that was the meeting David? Jack Welsh where he was mad about the strategic plan. Sir. What tips do you have for word advocating a recession? You need to identify for me I the mind the guy. OR THE GUY! It was such a crazy situation. You can't both guys. Were personalities came so unhinged. Top the Kobe! There's a Lotta shutdowns going on those seriously and your book talks about how to navigate a recession and tough times. Obviously, that wasn't audio view. Obviously, that was audio of me, so tell us about What do we do? How do we navigate this stuff? Yeah this one I the thing I say about recessions. Is they all come about for different reasons, but there's one thing that's true about all of them, and that's they all suck every single one of them. And you're always stocked having to pick between the least bad of two options. I too often. Leaders spend their time trying to figure out. What's that third option that You? Know is everybody gets gingerbread. it. It just doesn't work out that way. So the first one this, this recession is different because you have to worry about health. I after you've addressed that. I said there's several pieces of advice that I. Give The people. The first is as a leader. Don't panic. And it's really surprising. How and when everybody around you is panicking? The press is panicking. The press loves the panic. It generates more more eyeballs watching. at the end of the day as a leader, you can't pin. person cannot. The second one. is to think independently. And I'm fond of saying that the ability to think independently is a lot more rare than being smart. And there's all kinds of smack people who did well in school and can take a test and tell you why is the way it is? Being able to figure out. Okay, here's what's going on. Here's what smart from me. My business, my organization whatever it is. A very different. And I benefited there 'cause I. had a mom used to always yell at me to think to myself, and my dad always said be a leader on a follower. And I think that makes a difference that ability to do that third one. Don't forget your customer. And it's too often when you're in the middle of tough times. It's easy to forget about your customer. And whether it's short term long term. Whether, you're worried about investors or employees. That customer's going to matter and to Watson. That's the person that gets forgotten when everything is being cut. I'd last, one would be in the middle of the recession. Be Thinking about recovering. And when you're in the middle of a recession, all the meteor, all your people, all they're talking about is how it lasts like this forever. It's going to suck forever It's never gonNa be good again. The world has changed well. You know a little bit of that is true, but in general for the last fifty years. We've always come back. So I think the betting person says okay. Let's bet we're GONNA come back. One of the things I do today to make sure that I'm the company that really comes out of this mightily. And what you find is a lot of those like long-term growth program seed planting whatever it was, you were doing when times better. You should keep doing those in the middle of the recession. Maybe. Fund, them a little bit last. Maybe things have slowed down a bit. That's good, but you find a way to keep doing those that you build fidelity with your customers, and then when you come out of the recession and recovery does come in you. Blow your competitors away. David, I've got a time for three final questions for. We're coming in rapid fire here. Were operating as the CEO and you guys were going two, thousand, sixteen, Fifteen, fourteen, a menu, really a flow. What time did you wake up? And how did you organize the first four hours of of of every? On well, the only thing that was really the same every day, and that was only true if I was in the office, which was only about fifty percent of the time. Are Those two extra large Dunkin. Donut coffees and a Cigar Day. Go on the. I would do my best to read Five newspapers so I read the Wall Street Journal and the Financial Times then the quickly. New York Times then USA Today then the post. And it gets easier because the news doesn't tend to change all that much cheaper kind of fly through the the blast, three or four. And then I would begin with whatever the day was and it it could one of the things I love about my job is it was never the same? Every day was different. Yeah! I'd have to go from our to our subject changes. BOOT changes. It was actually I love that part of it in. The, great job for somebody with partially d now Dave Josh has one final question for you. Are you getting golf quite a bit? Are you down in Florida Dave? Is that what I heard? The guy say you're down there in Florida. Yeah! So he gets play quite a bit. No. I've been so busy working between this book and my new company a verdict. The Data Center Products Company. That I really don't have a lot of time to play I. was finally getting to a point where I was going to join a club and Kobe hit no going to sell back where one? Hey, I get you a free membership at the Middlebrook Country Club in Tulsa Esther. I'll get you a free caddy. Get your free a free beverage. It plays pretty tight with all the trees though day, so you gotta hit the ball straight down. But there's no alligators on the courses, so that said hey guys. Your ten minutes usually somebody gets. Somebody Loses Jason. What's your question for this? The see the former CEO who wrote a massive constantly a lot of hands off. Why question is you know it's It's probably extremely stressful. Being such a high level position, and so you have to hold people accountable, but you are responsible for just a massive growth of the company, so during that time you helping honeywell grow. How often did you end a presentation or a sentence with the phrase? How do you like them apples? I never ended it with that one a great line from goodwill hunting, but I would say that every year when I would gather our top three hundred leaders together. And I would do my wrap up pitch. They all knew my ending phrase was always going to be. Let's get out there and kick some ass. Yes, and they knew I was gonna say that and It was one of those things they just waited for all the time. Brother I appreciate you so much for being on the show. I? Really do hope you get into speed golf. In the not so distant future, it really has a future, but it needs a great leader like you to lead the revolution. Speed Golf maybe can be the CEO Speed Golf. Anything anything that would make golf faster. I am often that I agree with you there I agree with. David her. We appreciate you so much hope you have a great rest of your day Sir. Thank you, it was fun. I just was a little different than what I expected, but it was fun. You're stud, we appreciate you. Well what a what incredible show! That guy was actually fired by Jack Welsh and then went on to become an epic success story thrive nation. It's not about just learning knowledge. It's about doing. We don't want to be just hearers of these words. It went to be doers of these words. It is absolutely important that you listen to each and every show, and you ask yourself. What can I apply as a result of what of what I have just learned? What can I apply as a result of what I've just learned, and now that any further ado in the show the boom so here? We got you right. To What Bold

Sir David honeywell Captain Jack Jamie Jack Welsh CEO Jack Welsh speed golf golf Mr Dave Cody David Josh Florida Dr Z. I Tom Brady Josh Wilson Dr Here Dave Cody David Cody plant manager Dunkin lions US
Friday, October 9th, 2020

Leo Today

02:46 min | 10 months ago

Friday, October 9th, 2020

"Good Morning. Today is Friday October Ninth Two thousand twenty. The last quarter moon in cancer find harmony with Venus, Uranus and mercury a clashes with the leaper son. There's a take charge attitude in the stars now. L. You'll want to double check your plan before leaping into action. This is Leo today. Apar- cast original. If you're feeling anxious depressed are overwhelmed. Better. Help offers licensed online counselors. Trained to listen and help. Connect with your counselor through secure video phone chat or text. Join, the one million plus people getting help with better help. And horoscope today listeners get ten percent off your first month at better help dot com slash horoscope today. That's better. H. E. L. P dot com slash horoscope today. Let's begin your day. The last quarter. Moon. Cancer. Activate your twelve house of sleep inviting you to find respite. Outside tension may threaten to infringe upon the sanctity sought will be important to have space were balanced can be restored. Now, take a moment to reflect on your relationships. The Sun moves through your third house helping you connect with people who see the world through the same colorful kaleidoscope enjoy this feeling of camaraderie. Contemplate your path to personal growth you have a great propensity for leadership. You're naturally gifted empowering a team. Remember what Jack Welsh wants said before you are a leader successes all about growing yourself. When you become a leader. Success is all about growing others. Leo Today is a daily podcast follow on spotify to make it part of your morning routine. If you're interested in learning more about your sign, download the sanctuary from the apple APP or Google play stores get your first reading today and follow sanctuary at sanctuary world on instagram. That's s ANC. T.. U. A. R. Y. W. R. L. D.. Course Cope today is a park us original.

Cancer Leo Apar Jack Welsh apple U. A. R. Y. W. R. L. D Google spotify H. E. L. ten percent
A Focus on Fracking

Pro Rata

11:50 min | 1 year ago

A Focus on Fracking

"I spoke with ten minutes to get you smarter on inclusion of Tech Business Politics sponsored by what it takes lessons in the pursuit of excellence the New York Times bestselling book by Blackstone Steven Schwartzman. I'm Deborah Mac. Today show the world's first INFO DEMOC and how tech hurdles could trip up this year census but first a focus on fracking? So we are just days away from Super Tuesday in which millions of Americans will vote for who they want to be the Democrat to take on president trump in November and conventional wisdom. Right now is that Bernie. Sanders will solidify his front runner status but one issue. That hasn't really come up. During any of the democratic debates is fracking the controversial oil and gas extraction technique that Sanders has pledged to end if elected and that matters particularly in swing states like Pennsylvania where fracking has helped lead jobs boom and nationwide where it's helped reduce America's economic insecurity reliance on foreign oil so sanders is policy is a full fracking ban on both public and private lands arguing that the practice is inherently unsafe particularly drinking supplies. He doesn't want to do this via executive order on day. One like Elizabeth. Warren has proposed but is still high up on his environmental to do list. So three questions first. How will this play politically? There have been some local moratoriums on fracking in places like Colorado in Pennsylvania so political plus but again the jobs political minus number two. How will this play economically? If fracking were banned even gradually would it become an economic and Ville not only because of the lost employment but also the likely higher oil prices and number three? Are both of those things secondary concern because over drinking water? We all need that and we need it to be clean. So we'll dig into all three of those in twenty seconds with axios energy reporter Ben Gilman but first this in the New York Times bestselling book what it takes lessons in the pursuit of excellence Blackstone Steven Schwartzman share some of his lessons from creating and building one of the world's leading investment firms recommended by Jack Welsh Janet Yellen Radio and more get the book on Amazon or at read what it takes Dot Com. We're joined now by axios energy reporter Ben Gaming so Ben. Let's start with the big picture here. You had a story talking about. How a report from Kaiser Family Foundation and Cook political surveyed voters in states like Pennsylvania and Michigan and a majority of swing voters. Support the green new deal. Ninety two percent of Democrats support but having a fracking ban is not supported by a majority. How do these voters reconcile those two things? Yeah that's a really good question. There is perhaps some business there and I think the state to look carefully at among the states that they pulled is Pennsylvania because that's of course incredibly populous state. So it's very important in the general election it is also a swing state and it is kind of yet we would see you the first or second largest natural gas producing state. It's kind of right up there with Texas and so natural gas extraction and production drilling a huge thing there and so of course very important question is if Bernie Sanders where to be the nominee would that create some political jeopardy for him in a general election matchup against trump. Who of course carried the state for years ago in at the set to be an important battleground again. Pennsylvania's you say is important state Bernie. Sanders probably can't win the presidency without Pennsylvania and the true may be true of trump is. Well is fracking from your perspective. A big enough issue. They're viewed as a big enough issue there that it could actually turn the state because it was a pretty narrow number in two thousand sixteen and you do have certain local communities in Pennsylvania that have put moratoriums on fracking. The question is is in part related to whether or not sanders sort of theory of the case for his five billion. A general election is accurate. Or not certainly if the goal is to attract more moderate voters as polling showed than calling for a ban on practising. What she has done could really become something of a drag onto him on the other hand. You noted the popularity of the green new deal and more broadly the of concept behind the sanders candidacy is. He's got these kind of big gigantic sweeping exciting policy ideas that will bring new voters for Poles and Jews. Turn out so I think it kind of rests on whether or not as I said to kind of Sanders Model Can Be Effective. There's something of an irony in all of this to which is that you know realistically calls to completely ban. Hydraulic fracturing would go nowhere in Congress. There's simply no chance that would happen. What if president could do under her or his executive powers would be there. Greatly restricts the practice on federal lands and stuff that's most directly under the sway of ministrations. However if you look at where. The fracking boom has really happened over the past decade. And now we're talking about oil and natural gas going back even further under decades natural gas. It's largely been concentrated on areas of private and state lands in Texas and North Dakota and Pennsylvania and other states so one kind of question here is if there is political jeopardy in calling for a fracking ban. Whether it's kind of worth it. Because as I just mentioned a moment ago a president could realistically do far less to restrict the practice on areas outside of direct federal control. These maybe one of the reasons why even though we hear green new deal lot we hear clean environment a lot hear. Paris climate agreement a lot from the Democratic candidates during debates and on the stump. We don't hear that much. Talk about fracking from them. Even though it is a core part of their climate plants when you look at the questions in the debates. I think we've had gosh what nine ten debates. So far there's been a few questions about fracking and in fact you had one in that debate in Las Vegas where you saw a real split between sanders and more moderate rivals. The questions in the debates largely been on more kind of broader environmental and climate topics as opposed to oil and gas politics specifically although the topic has been a couple times. Give me a kind of a bigger picture thing. Let's assume for a minute somehow Bernie collecting. Some Congress did go along with this ban not only in public lands but on private lands is well what would be the kind of energy market repercussions outside of obviously certain companies. No longer existing is simple really as oil prices would go way up surely there would be a very large hit two. Us production now the sanders legislation again. We're talking about hypothetical here because I don't think we're very on Capitol Hill at the Sanders. Legislation Calls for a kind of multi year phasing. Certainly you would have a very immediate effect on. Us production it would affect companies differently. Some companies have a great deal of exposure on federal land. Others are are have their operations much more concentrated elsewhere. But certainly I think you would see a fairly important in upward price effect because of the production that would be lost in your future but also more broadly of the kind of market signal. It's about the future of US policy us. Essentially puncher state at this point on the political will of that you know you would normally pick representatives house members and Texas would obviously vote against. Because you know there's a lot of fragment but as you say there's also a lot of oil money there and that sugar those oil companies want that sugar high the kind of desperate for it at this point although I think that there. I don't think the way that they would want to get. That high would be by prevailing their medium long term future and ability to operate at all in the in the US. So I I think that would be a high that they were putting out. They enjoyed it in the moment. They're not very happy with the causal that people say that to say that the industry is going to vote with its dollars. Innocence and not support a Democrat who probably not supported Democrat at all but certainly not support someone who is going to take such an aggressive posture toward their industry and look standards doesn't want to ban fracking but he's talking about prosecuting oil companies for one reason or another so certainly. I don't think that the oil industry is Sanders. Jurist any sense now you know other Democrats while they all have very kind of regressive and sweeping oil as the energy and climate change plans Joe Biden who I think at this point as the tribal for for Sanderson nation would not carry forth such an outright researching on tracking all his plans to also do call for you know movement away from fuels over the medium and long term. Final question for you. Let's talk about the actual issue here. This isn't Bernie Sanders. Not Liking. Oil comes in general. Even though he doesn't this is an environmental concern. Safety concern and particularly drinking water concern. How valid from your perspective are the criticisms that hydraulic fracking by its nature is inherently unsafe? They're clearly been isolated cases in cases in which the near term sort of acute environmental effects of fracking in oil and gas extraction and production. Probably are very real. I think the reason that this topic though is getting a great deal of attention. This cycle is more because it's so intertwined with climate change global warming one of the things that you hear a lot about the fact that natural gas with his long considered to be more environmentally friendly alternative to coal. And that's very good reason when you burn it. It produces much less traditional pollution and much less carbon but one of the reasons that opponents natural gas are against is because one the need to get off fossil fuels more quickly if we want very very steep emissions cuts and to the fact that there is this release of nothing both sides and also down the distribution chain not so very potent planet warm gas emitted in. It's not admitted in the closet. He says your fuel which is the most important clan of warm but that said it does have this kind of sort of packs a lot of punch so for those reasons. I think that there are very real reasons to be concerned about oil and gas extraction from both kind of an environmental standpoint in climate. Change reasons for you on the spot. Final thing quick. Yes or no you get an opportunity to buy a house at a great price with great schools in a great neighborhood and the job and everything is great. The only thing is there is hydraulic fracking near your local aquifer. You've got kids do by the House I think you probably yes but I think you would want to do it very much. The Eyes Wide Open and you would WANNA pay a lot of attention to what their regulatory regime in that state. Isn't he would want to pay a lot of attention to really. Honestly who's running the federal government to see if it's going to be an EPA and regulatory bodies that are paying close attention to the operators in that area or kind of turning. They're facing in another direction or turning a blind eye Ben Gilman who writes the daily axios generate newsletter which you can get it sign up dot dot com. Thanks for joining US problem. Thank then my final two right after this in the New York Times. Bestselling book what it takes lessons in the pursuit of excellence. Blackstone Steven Schwartzman share some of his lessons from creating and building one of the world's leading investment firms recommended by Jack Welsh? Janet Yellen Ray Dalia and more get the book on Amazon or at read what it takes Dot Com now for my final two and I up. The spread of Corona virus is also leading to a spread of misinformation about corona virus. Everything from fake yours conspiracies about how it was brought up in a lab as a politically charged bioweapon atop World Health Organization official called the trend in Info democ another. Who official added the quote? We need vaccine against misinformation. Now obviously the medium here is quick testing social media which is being further exacerbated by the fact that there are still a lot of scientific and medical unknowns about corona virus. The bottom line though is that we will find a cure for this pending pandemic much sooner than we will for people pretending they've found a cure for it if only access is reporting that a growing number of community leaders are concerned about this year census specifically that historically hard to count residents will become even harder to count in part because of new technological hurdles specifically. This will be the first ever. Us Census that people will be allowed to complete online a convenience for many of us but an added degree of difficulty for those who are either unable to afford connectivity or those living in so called digital deserts without Internet access such people can still fill out their census forms the old fashioned way but the US Census Bureau. This year has less money than it really needs which will result in fewer on the ground workers knocking on doors in short Internet. Technology is going to create a bunch more zeros than ones. And we're done big. Thanks for listening. It's my producers. Tim Chauffeur's Naomi. Shaven have a great national tooth ferry day. And we'll be back Monday with another pro rata podcast.

Bernie Sanders US Pennsylvania Steven Schwartzman president Texas New York Times bestselling Ben Gilman Congress executive Jack Welsh Dot Com Amazon Deborah Mac
The big sort

Akimbo: A Podcast from Seth Godin

37:12 min | 2 years ago

The big sort

"Just past my house near the sawmill river. I passed about a dozen dinosaurs lying in the sun relaxing as they often do on a fall day. Of course, they weren't the kind of dinosaur. You just pictured they were birds. Hey, it's south and this is a kimbro. Then. We'll be back in a second. After this message from our sponsor Lenovo. My name is moody Spacey in my small business as Lizzie kitchen modern Lebanese restaurant. My story starts in Lebanon. I was born and raised there. But I immigrated to the US in two thousand six upon coming here. I really missed a lot of the food the culture and the memories that are made and shared around the kitchen table, and I realized that if I wanted to experience the flavors and traditions, I left behind that it would be up to me because for me cooking culture, its heritage. And it's a huge part of who. I am. So I decided to share that culture by offering up one simple dish HAMAs? I saw crazy sales by selling HAMAs. But those sales go me asking where do I go from here? Stay tuned to hear the rest of my story and see how one decision made a difference. Yes. Of course, birds are dinosaurs. If we carve up all the animals on the face of the earth and all the animals that there used to be the way Lineas did we discovered that the lineage of birds, go straight back to the dinosaurs? But we don't call them dinosaurs anymore. The reason is simple because if I say I saw a dinosaur lying by the side of the road, you're gonna visualize Allosaurus abroad to source at Toronto source Rex. Because in our minds. That's what a dinosaur looks like. So the question for today is why do we even bother dividing things into categories? Well, Lineas did it for a reason? And the reason was this if we could accurately divide the world into categories taxonomy as it's called and the categories are tax on 's maybe we could understand how the universe worked. Maybe we would get some insight into how we got here from that early beginning, we've developed a mania for sorting things we sort them for a whole bunch of reasons go to the library. And there is the Dewey decimal system until you get to fiction, and then it's alphabetical ABC d e f g the question, of course, is is the alphabet in that order because of the song the. That the Abete has an order. The fact that we alphabetize things that's pretty new and super important because one of the other uses of a big sort of taxonomy is to make it easy to find things. So the ruler. And the pens go into junk drawer in your kitchen, but the eggs the eggs going the F holder in the fridge, except if you're in Europe in which case DAX on the counter, and when you're staying in an Airbnb, it takes a few minutes and uncomfortable few minutes because nothing is in the right place. Our ability to know where to find things causes us to sort them because it's easier to sort them when we're putting them away than it is to constantly remember the where and why of where something might be another reason that we. Will sort things is so that we can rank them Amazon. Learn this early on there used to be just one bestseller list for Masan books. It was the best seller list this book sold more than this book sold more than this book. But they discovered that authors were eager to promote themselves if they had a shot at being a bestseller. So now, yes, you can be a bestseller in just about any category. You condemn new books on crocheting. There's a category for that. And if you write a new book about crocheting, good luck to you. I hope you come out at number one. About twenty five years ago. I had a fascinating correspondence with the editor of the New York Times book review at the time. They had been listing each category of book on their bestseller list with ten listed winners ten bestsellers. So they had fiction they had nonfiction and for each one the head paperback, and they had hardcover. But then what they did was they carved out a section called advice. How to and miscellaneous? That's my section. I don't know if I do vice or how to but I guess I do miscellaneous. And then what they did was they made all the other lists fifteen books long, and they made my list five books long turns out the advice how to and miscellaneous nonfiction category sells a lot of books and by making it only five books long the times made it really hard to get on that list. So I wrote them a letter, and I said, dear editor. Why did you do this? And she wrote back a personal letter, which was very impressed by and it said, we did this because we don't want people to read those books that has really stuck with me because if you control the taxonomy, and you control the rankings. You're also going to control how people think about where each thing fits, and what's important or not. If you're a breeder of Thomas Gann, which is a Finnish dog that looks a lot like a wolf and you're hoping to be able to show your dog at the Westminster dog show at Madison Square Garden run by the American kennel club. You're out of luck any conversation of taxonomy wouldn't be complete without talking about dog breeds because after all there is no such thing. All dogs are on a spectrum and show dogs merely fit within accepted boundaries of parts of that spectrum. And so what's going on at the Westminster dog show is a celebration of these artificial tax on one other thing about it, something I have never understood why is it considered a sport? Why do they cover the Westminster dog show in the sports section of the newspaper, yet, another example? Of putting something into a category. The other reason we wanna rank things, of course, it's not just so that we can be ranked number one. But so that we can pick the thing that is ranked number one because it makes us feel better because feel better to know that we have hit and these rankings. Also when their subjective make the winner feel really good. There's a concept called an e got that somebody who wins an EMMY a Grammy and Oscar and a Tony, of course, Mel Brooks is an IGA winner. The thing is the open secret about the got is that the easiest one to win is the e part because every year they give more than a thousand EMMY awards if you show up on TV, and you don't win an EMMY, you might not be doing something, right? How did that happen? It happened because the taxonomy of TV got ever more complicated. Their sports EMMY awards. There's daytime EMMY awards the awards for Chicago, and Detroit and Cleveland at it up and sooner or later if you stick with it and pick a category. That's not too competitive. You U2. might win. An EMMY this lead to some problems for the Grammy people from nine hundred ninety six to two thousand and nine they awarded a Grammy for the best polka music. Of course, you know, the immortal Jimmy slur. Jimmy won a Grammy. Eighteen out of twenty four those years. Good for him. That's a lot of polka talented one person. But after a while the Grammy people realized that maybe they should retire one of their categories. Okay. So to find things to rank things why else? Do we need a taxonomy? The next thing is to predict behavior. What we do is. We learn how a category attacks on works. And we use that as a shortcut to predict how the next thing in that category will behave. So we would be stunned if a lion or tiger or bear started flying because things in those tax on don't fly. But if a bird a bird we've never seen before starts to fly. Now, we're not surprised at all. Because birds are supposed to fly we categorize the world. And then we make assumptions about how the world is going to work and one way we get into trouble is when we try to make taxonomy of human beings when we tried to say, oh, this person is going to act like this because they're in that category. So falsely categorizing and falsely predicting how something in a category will act leads to unfairness to confusion and to lost opportunities. The fourth reason we might want to sort things into taxonomy is to understand how the universe works when they decided that Pluto wasn't a planet. This was a big problem. It was a big problem because most of us haven't spent much time at all thinking about astronomy. And so when they changed the rules of astronomy, the taxonomy of astronomy, we have to reconsider it. While Pluto is in a planet. What is a planet, and if blue planet is Rover dog is Pluto a dog, what is Pluto anyway, and Dino is he a dinosaur. What happens when we start to mess with what deserves to be in what category? It makes us uncomfortable. Because categories mean we don't have to pay attention anymore. Once we know that the spoon goes in the spoon slot in the civil war. We can forget about the spoon. But when we have an. Him a new item in our house a tape dispenser. And there's never been a spot for that before because the tape dispenser. Doesn't fit in the junk drawer. We have to leave it out. And every time we pass it. We're sitting there saying what category? Do I want to put this in the universe isn't working when that's occurring? And of course, there are different kinds of universes. If you go to an art museum, you don't expect the ancient Greek and Roman sculptures to be in the same room as it David Hockney painting. Of course, not it makes it difficult for you to think about how art fits together. How the universe of art make sense? If we eliminate the chronology that art has traditionally been judged by chronology and materials it lets us for tax ons. But then just about thirty years ago, they started messing with it because they divided contemporary from modern art, what that doesn't make sense contemporary, and modern art should be the same thing. But of course, they're not the same thing. They're not the same thing because modern art was a reaction against thousands of years of traditional art. It was the work of a few artists who stood up and said now that there are cameras. We don't have to work to pink things to make them. Look like a photograph was taken and that lasted for fifty or more years. But then the joke was over. Okay. We get it. You're not painting. Like, you have a camera anymore is at the end is art over and what Marcel Duchamp and others did was they pioneered contemporary art, which said we are not reacting against traditional portraiture. We are reacting against art itself that we're going to try to do is represent ideas. Not just the way that they are painted this cost people a lot of consternation and so curious there's the curator who built taxonomy needed to figure out how to divide those things. So they could inform us because the purpose of the big sort one of them is to inform us about how the world works. Okay. Couple more to find holes and opportunities. So quite famously. They talk about Miami. Vice the TV show. How much time that was pitched? With just two words. One was an acronym. Two words MTV cops. What is MTV cops me? Well, an empty is attacks on MTV is a category MTV is music, videos and cops cops his on a category, a police procedural what happens if I mixed them. So once I understand the grid. Once I understand how the world is laid out then I can find the holes, and I can blend categories to find new things that are between category. So what's a flying car flying car is in between cars and planes? It doesn't exist yet because the physics aren't in its favor. But the point is that there might be a way to have it exist. And when we think about business model generation, we can do this. Same thing. Some businesses are based on an auction. Some businesses are based on using heavy expensive assets. Some businesses are based on the relationship between the buyer and the seller. Other businesses involved no relationship between the buyer and the seller once I can carve up the universe into categories. I have a chance to understand how the universe works. I have a chance to rank things in that universe. I have a chance to predict the behavior of things in one category or another. That's what stockmarket analysts do all the time. The PE ratio of stock is based largely on what industry it's in which is based on what category. It's in. This is why Jack Welsh got famous Jack Welsh was the long serving head of General Electric, and he may or may not have been a really good manager. But here's what he was great. He convinced the stock market. The General Electric was an. Industrial company, but he made money like a Bank and since he had the PE ratio of an industrial company. But the prophets of a Bank G E stock soared and sword sword. Because all Jack Welsh did was move one thing from one category. One tax on to another. A conversation about taxonomy wouldn't be complete without talking about David Weinberger miscellaneous Google. And the folks on me, here's what happened. Google unlike Yahoo didn't need a librarian to figure out. What goes where yahu wasn't a search engine? Not at first it was a directory, and there were actually teams of people hundreds in a back room who were sorting with taxonomy every website. They could find sorting them. And ranking them a logical way for a librarian to help you find the things and where they belonged in the universe. What Google came along and said, nah, no, we're not gonna do that. We're gonna look at the words associated with people who are linking to every website on the web. So if someone is using the word plumbing supplies to talk about this website, and you type in plumbing supplies while. Then we're gonna guess that's what you're looking for this idea of tagging by the masses. Is called the folks on EMI. It's a folks on me because as more and more people, tag, more and more stuff, the number of categories grows organically, it's not a top down process where librarian decided that the Dewey decimal numbers seven hundred point one four. Instead the crowd is deciding what belongs in what pile and is Google started down this race. What we saw was more and more miscellaneous just getting thrown in the pile because if you can tag, everything it doesn't matter where you put the tape dispenser. All you gotta do is type tape dispenser, and you will find it. Suddenly darn hundred categories or thousand categories there's an infinite number of categories, which means sorting by category is no longer useful. It means that ranking by category is no longer useful. Everyone is a bestseller of one every catego-. Ori just has one in it the one that is unique and being a bestseller on Amazon in a category. Like new books about crocheting, obviously isn't worth that much because the categories get smaller and smaller, but it doesn't matter. Because even though we can't rank the way we used to build a rank what we can do in this long tail universe is find exactly what we're looking for. So I don't know if there's such a thing as left-handed crocheting. But if there is now going to be able to find it because the ever growing folks on EMI of people labeling stuff means that if I need it. I can find it and those dinosaurs near my house while I can give them attack that in addition to being Canada geese there also dinosaurs. And I left out the last one, but I wanna dress it now, which is that one reason we continue with taxonomy is to divide us that people who seek to divide us label us that people who are uncomfortable with miscellaneous need to know who someone is before they encounter them to find out. What team they are on and too often as the media hypes up our political system what we do is we judge others by the worst among them. And we judge our own team by the best among us, which is a completely unfair comparison. And what we end up doing as we seek to divide our. So we spend more and more time on the validity in quotation marks. Or the DNA verification of the person were seeking to judge the us versus them. And not nearly enough time on the folk Sanni the open long tail idea that everyone is actually in their own category. And so if putting someone in a category, isn't helpful. If all you care about is whether animal flies, it doesn't matter. If it's a flying, squirrel or Sparrow. It's still flies. And so the behavior that we see the outputs that we see make way more important than whether Pluto is a planet or not. So yes, now, we live in a world where everything is miscellaneous where it pays cross to understand traditional categories. So that we can find the hole so we can blend so we can invent MTV cops. So we can find untapped opportunities. But no, we don't have trouble finding things anymore. This. This is a podcast me. Sometimes I'm an author. Those are. Categories by right now, you you are an individual and individual choices and individual who can choose to see the world one way or the other in any given moment and the better we get at tagging things. The better we get at figuring out where we wanna go. The more easily will be able to contribute to the culture. We wanna build. Thanks for listening back in a minute with answers to your questions from last time. But first, here's a message from our sponsor Lenovo. I started my business two years ago as a way to really share my culture the community and today, I'm lucky enough to spend time in the kitchen with my husband doing what I love every day after the success with my HAMAs opening a restaurant was the next logical step because my culture is so much more than just one dish. And I wanted to share that entire plenty with people here in the states, but running a restaurant is a lot of work managing the front of house to the back of house inventory reporting expenses. There's a lot to keep track of and take plays such a huge rule and keeping us organized with Lenovo. I'm able to do all that and more. I can be designing a menu and then ordering ingredients and with the right Tech- on my side. I can get back to focusing on. What matters. Most cooking and sharing my culture the community to see how Novo can make a difference for your small business. Visit WWW dot Lenovo dot com slash S. M B. I'm moody Spacey. And this is my difference maker story. Kyle reading this is Stephen out Madison Wisconsin Alicia from Charleston here. Hi. Warm. Greetings from curious. How much Nick Ryan from Pittsburgh, Pennsylvania? Pay sent this is Rex. Hi, this is Roberta Perry. My question is and that completes my question. We got some great questions this week before we get to them. I want to encourage you. If you're listening to this early February to visit a Kim, Bo dot com, not usual akimbo dot link. Akimbo dot com where we will tell you a little bit about a new workshop. We're launching this week called the business of food. It's run by my colleague and hero will Rosenzweig and you can read all the details at akimbo dot com. Hi, this is roughly from North Carolina. I'm a plastic surgeon. So I spent a lot of my time talking to people about their self image and beauty and talking about. What defines beauty? It's fascinating for me to think about how an ancient sculpture in its pure painted marble that in our current culture may be undeniable representation of human statics could be entirely different in its imperial. From how its creator intended. I agree entirely that we need more empathy and understanding what the regular kind was when it was created. My question, though, is is that what we should be doing. Is it more important that we experience art as it was initially intended, or as our culture, currently sees it, isn't it just all about how it makes us feel something I learned in my line of work is that person self perception of their own beauty, and how that reflects on their self confidence is far more important than the cultural norms of beauty that Termine. How other people see? Thank you. Thanks, doc for this question. It's complicated. A bunch of levels. So we'll start with this. Art, can certainly be consumed merely as what makes me feel good. But what has happened in the last hundred years of many forms of art or theater is that the idea behind that concept is just as important as the execution. So a Marcel Duchamp ready made hanging there or understanding the. Them that saw Lewitt asked the Curators to execute. These change our perception of what we are seeing they change the way we understand it until the source does matter now, you can choose to view it purely as an aesthetic exercise without any narrative whatsoever. But plenty of people are engaging with art with the story that it comes with. And that story's something we wrestle with which leads to the second half of your question. I don't believe there are internal narratives about beauty that exist in a vacuum. I think that people who lived in the time of Rubens had a different body image than people who live now, I think that people who live in Miami have a different body image than people who live in Copenhagen, and I'm rounding, of course, everyone is on a spectrum. But what? We know is this. We look in the mirror, but we also look at other people we look in the mirror, but we also look at television or the internet. And so I think we cannot discount. The fact that the culture around us feeds and fuels are narrative of whether or not we think we fit in where we stand out whether we think we're calling off whether we think we're good enough personal aesthetics are always relative. When Gulliver ended up in the land of the Lilliputians. They said he was a giant. They didn't say we're not Pol enough when he ended up in the land where people were half horse. They didn't say, oh, I hate the fact that half a horse. They said there's something wrong with this guy. The current dominant narrative is force fed to us on a daily basis that narrative is what fuels so much of what drives people to cause medic surgery in the first place. A south. It's Jason could live from San Diego, California. Have a question for you highly recommend blogging daily. You say it will change for the better. You also talk about putting your work out there for people to see the not hide it. Because of what they may think. Also, he reminds us that there's no such thing as writers. If you can't really things that are great just keep writing Lance really get better to here's my question. If I commit to daily block commits putting out there for anyone and everyone ac- see should I still post days when the content isn't as good as I wanted to be just not care. What people think I'm glad by rifts about the daily writing habit are resonating with you. So let me try to be specific as I can your work will never be good enough. Your work is unlikely to ever feel good enough. But we do the work. Anyway, we go to the gym even though we can't run a four minute mile. We decide to write an essay or a book or blog post, even though we are not Stephen King. That's okay. The goal here is not to be perfect. The goal is not even to be the best in the world. The goal is to express ourselves to be interesting to land idea in someone else's consciousness. So that they can go ahead and also make things better. So yes, you have to ship every single day. You can't say what the heck and ship junk, but you have to ship every single day because that will put the resistance on notice and the resistance will push you to make better work the first time as opposed to spending all its time stalling and looking for excuses. Hi steph. This is Joey right from Lynchburg Virginia. Now's wondering if you're the type of person who figured out the idea or the one who saw the other person figure out the idea just like the crows. And if the ladder who did you gather some of your ideas from? One thing that I've appreciated about all of your work is the amount of goodwill. You put into it. It's not a get rich quick scheme. It's all about doing hard work. And I was kind of interested in. Where that I guess make moral compass came from an you really love the work. Thank you for sharing all of your ideas with us. There are no original ravens. There are no wholly original thinkers, it is impossible to bring a wholly original thought to the world and have the world do anything at all. With the best. We can hope for is juxtaposed visions combinations. Take this. And that when we put them together. Oh, we have something new. So when Email was young I said, what would happen if we combined Email something I didn't invent with game shows something I didn't invent what would happen. If we figured out how to earn. The permission of people we were engaging with. That was something I invented. But it wasn't a wholly original idea. My guess is that the ravens and the blue tits and the other creatures that figure out new ways of engaging with the modern world, they bump into something after they've bumped into it. They change it just a little bit. And if it works, they do it more. Then there are other ravens who are much better at seeing what's working and copying it. I would like to think that I'm a combined not a copier. But I'm well aware that on a good day ninety to ninety nine percent of the work. I'm doing is about copying someone did before me. And then maybe just maybe twisting it a little bit to make it even more useful. That brings us the second half of your super generous question. And here's the thing. There are a few people to Milton Friedman's and the Ayn rand's of the world Robert ringer looking out for number one who have somehow persuaded people in our culture that the short term hustle the selfish shortcut, the this is for me, not for you mindset is what we're supposed to do. It's not every day cops and crossing guard put their lives on the line every day people go to work at a hospital in do grueling emotional labor for not enough respected. Not enough pay everywhere. We look people are paying it forward making the culture around the better. So my posture of doing this. It's not original. In fact, it's pretty common. And it's the only way I can see to be able to be the contribution that I think to be. So yes, zig Ziglar came before you can get everything if you want if you'll just help enough other people get what they want. He used to say I'd like to just leave out half of that. How about you can go ahead and make the culture better if you can help other people get to where they are going period, it's a privilege. It's something that we get to do. It's not a shortcut for a way to get more. So I try to highlight the people have come before me as often as I can. But I should do it more because mostly what people who are trying to make change do is. They take things that are working from the world and slightly repurpose them to make things better. Hi, this is tough from India firstly, not for the incredible of ding out. This is marketing the book is really awesome questioners Blee as budding insurance as people who are trying to make the Mark in the world's best really have to get of Instagram because it is addictive and your question faded out at the end, but I'm going to run it here anyway, and she too. And here's the deal marketing is not advertising marketing is not interrupting people and marketing is not keeping track of how many likes you have on a social media platform. So no, you don't have to use Instagram Instagram is often a symptom of something working. It is not a tactic that causes it to work. So just as they were great brands that were built without running TV ads and just as there are people who have something. Say who are not saying it in a tweet you need to figure out who is your audience. How do they want to see you? How do they want to consume your work? How can you go to where they are? And engage with them in a way that fuels your work. And there's instead of agreeing to be upon in the Twitter Facebook access of social media where you were doing what the company wants not what's good for you. And the people you seek to help. So they go budget questions this week. Thank you for listening. We love to hear from you. Please visit a Kimba link. That's aka I m b o dot L I N K, click, the appropriate button and share your question. I'll do my best to answer it. We'll see next time. I just don't think it's possible or probable in in today's world to distinguish yourself as an educational institution or as a success seeker at the level of information, gathering or information distribution. I mean, this is the information age, and you can get a great book, a great essay a great idea anywhere. You know, none of us can do that better than the internet. Right. There is no great thought leader who can out think the internet. We have data. What MBA gets right? Is. It puts you in a context where you're part of a community that says, yeah, that's good. You got access to ideas. You've got access to information. That's awesome. But when you're gonna show up. When he got to face that blame page when you're gonna face, the possibilities within you. When you gotta face those fears. I'm not gonna let you gotta show up, and that's the hardest part. And it sounds simple. It sounds very commonsensical. But it's the number one reason why we don't write that book. It's the number one reason why we don't ask that question. It's not because we don't know we don't have the information. We don't have an environment. And we don't have a support network that makes it feel like showing up as possible for me, not just possible for the success stories out there, but I can show. Consider the alt- MBA more than three thousand alumni in seventy four countries around the world. Find out more at all MBA dot com.

EMMY Grammy MTV HAMAs Lenovo US Google Marcel Duchamp Amazon Lineas Europe Jack Welsh Lebanon Miami editor Stephen King Airbnb Lizzie General Electric
Superbug in the U.S.; Market Morale; Remembering Jack Welch

Squawk Pod

33:44 min | 1 year ago

Superbug in the U.S.; Market Morale; Remembering Jack Welch

"Today's uncertainty may cause you to question your investment strategy but with the right perspective and investment solutions. We think it's possible to stay on track toward long-term goals with Janice. Henson abandon your dance. Not your financial goals bringing show musically squawk pod daily podcast brought to you by the team behind squawk box worst control to CNBC's essential morning show every day. Get the best stories. Debate and analysis from the biggest names in business and politics are coming to enact today on swat pot coming back from wall. Street's worst week since the financial crisis. Cnbc's senior markets commentator. Mike Santoli probably be pretty reserved about making bold predictions about exactly where you go from here. Health authorities have confirmed the second corona virus death in the US former FDA chief Scott leave charts the path ahead in parts of the country would pass the point where we can contain this. We're going to have to look towards mitigation and the infectious disease physician. Who wrote superbugs? Dr Matt McCarthy Organic Store Closures here. We're hearing that life's GonNa go about Just like normal. That's not true those stories and more. I'M NBC producer. Katie Kramer. It's Monday march. Second Twenty twenty. Squawk pot begins right now. Becky by and three to one culinary good morning everybody welcome to Squawk box here on. Cnbc we're live from the Nasdaq market site in Times Square. I'm becky quick. Along with Joe Kernan and Mike Santoli. Andrew is out today our guest house. The morning is Liz. Yup She is the director of market strategy. Ny Investment Management. It's good to have you here to be here. I on this Monday podcast. The markets last week was the worst week on Wall Street. Since the financial crisis the Dow Jones composite went from its fifty two week high to its fifty two week low in ten trading days. That's the fastest flip on record since the nineteen thirties. More than ninety six percent of the stocks in the five hundred were in correction territory as the market opened today and this is all of course prompted by fears of a worsening corona virus outbreak the second. Us death was confirmed in Seattle over the weekend. And the first case in Manhattan has been confirmed the total number of cases in the. Us is now above eighty last week on squawk box former. Fed Governor Kevin. Warsh argued that to combat investor and consumer anxieties about a potential pandemic. The Federal Reserve should coordinate with other central banks. He urged the Fed to cut interest rates and opined on the feds lack of ammunition in times of crisis. The sooner they cut the better. It's a signal to businesses out there that they shouldn't decide to give up on twenty twenty you can hear the highlights of Kevin worship colorful economic analysis complete with knives and gunfights on Friday squad years. Joe Kernan today in the old days money supply every Friday. That would come out. So of the the headline was you know. Stock Selloff as asteroid heads towards the Earth. Imminent destruction likely. I was at ten. Am but market rallied in the afternoon after money. Supply is less than the Fed really. Is that GonNa be what I think? The context matters. I understand. We have more Sean. Any made the case. But really mean mean that kind of context. The Dow's thirty five hundred points so if we're bouncing a little bit in the in a very very overstretched market to the downside at least because we've already priced in something pretty dramatic in terms of new cases and economic impact. And all the rest of it but I do think that at least in the short term the idea that the Fed is going to use AMMO. It has perhaps is enough to at least kind of lubricate the market. Well we're getting. We're disconnecting again between the the Fixed Income and and the equity markets where we had that big APP. Maybe you didn't know how it's going to resolve itself even if we get news from the Fed this week that they're going to be more supportive. It's a band aid right. It's a sentiment band-aid we're GONNA continue to get bad news out of the economy's both here and abroad. We're going to continue to get revisions and earnings. The Fed can only kind keep us afloat and we'll probably chop around Mike. I know we talked about this last week. We'll probably chop around in a range until that bad news is over. Legendary investor. Lee cooperman weighed in last night during a CNBC special. We've had plenty of twelve percents corrections but none that I recall in three days and we've gone from complacency to fear in a very short time frame Mike. I think the correction the rapid decline. Also coming from an all time high is what really copy attention and relatively rare in both those respects and the damage done in a very short period of time in terms of the number of stocks down on heavy volume way below their turn all these indicators of how far the rubber band is stretched is our very extreme right. Now the issue is it also means. The market's just really unsettled. I mean you only get that way. If people were caught way all sides on something and they have an outlook that it's completely in a fog and I think that's why right now. Your the volatility index above forty. And you have like. We said the bond market and buying panic right now. All those things suggest you should probably be pretty reserved about making predictions about exactly where you go from here. And it's going to take one. Relevant marker here is that the low and the SNP. From Friday morning around twenty fifty we close one hundred points above that right very big rally late Friday when it was short covering people getting out of the way again. Just oversold now. That's an interesting point. Because that's essentially where we were trading most of last summer summer during that pullback and we were afraid of Flat Yo curb your afraid of recession so it took. It took out the entire. The world is going to recover advance that we got since August October. Just explaining the Friday narrative that short-covering and that wasn't obviously that was going to be not late in the day. The response could have just as easily been. We got two days to find more cases and have more deaths than we could have a thousand there are. There's eighty but going into the weekend I think that the consensus or or the the you know the if you just looked at the knee jerk reaction it was that. I don't want to be long for these next two days which I think it was. Mechanical was making a bet the week it's like. I'm learning from betting on basketball. It doesn't matter who's playing either team can win on and on Friday. There's no way it was a fifty fifty flip was mark. We're GONNA meltdown in the last half hour in these markets. I'll go to baseball where it's like. There's this thing as momentum if you get blown out one day momentum is Tamara starting pitcher. You start the next day. You see who shows that's true too with a basketball march madness if we have it this year but I can make baseball. Okay it'll be on. Tv Corona virus has investors spooked and also has many consumers running to stock up on goods retail expert. Jan Nathan has been serving stores. Did that a lot over the weekend and he joins US right now with his findings Jan. It's good to see you. You'd see you all right. So let's talk about this. I saw some news report over the weekend. Where seventy six percent of people said. They'd like to stay away. From malls versus seventy five percent. Who said they'd like to stay away from public transportation? I Dunno you. Kinda way being in a crowded subway car versus being in a macy's I think I might take the ladder. But what did you see over the weekend as you were out shopping and Checking things out. I was on metro north and the subway in to mall. So I guess you know odds are like zero getting through this but the malls warranty Hudson Yard. I was Danbury fair and empties pejorative term. But it was very light as far as the people who were there. I was also at Costco and stop and shop and it was literally the I've ever seen the COSCO. I was then and it's never busy at the end of February. I mean it's like very normal at the end of February. You're supposed to be able to drive in and park. They're supposed to be shopping. Carts there was neither. I literally had to drive around the parking lot until somebody pulled out to park. That's never happened to me. And all the TRIPS. I've ever made this particular costco including at Christmas and Thanksgiving. It's not just that KOSCO. There were reports over the weekend to the West Coast to the east coast. They were they were people. Were out and stocking up. I guess that's a normal consideration when people start to get fearful they WANNA make sure they stock up in case there are supply issues down the road and it was also Walmart and target and wanted to stop and shop which decimated like every cleaning product out of the aisle gone but there was the same story at Costco literally. They were buying rice packaged rice at such a rate that the shop people are people who are stuck in the store bringing in and out park in the aisle instead of putting it on the shelves and people were just put it in another carts and every cart. When I got there was gone when you all the cards are gone at Casco. Pretty Busy Day. So it was pretty amazing. What does that mean? I mean? This is a dramatic few days that you're going to see people stocking up. Does this actually matter to the bottom lines of any of these companies? Oh I don't think this is a few days. I think you're GONNA see this go on for a long time. Remember two thousand nine when we had the swine flu. H H one. In one vaguely sixty million people in America were come came down with swine flu over a one year period. Two hundred seventy five thousand of them got hospitalized and twelve thousand. Thirteen thousand died. This thing may not look like that but right now people think it's going to look like that we could see the stocking up going on for quite a while because this could cycle through as each new part of the country comes under the. What does that mean for the supply chain just in terms of this becoming a self fulfilling prophecy if people are out stocking up then it means that the shortages are more likely to happen now. It's like when everybody fill their tank with gas back in one thousand nine seventy three right and all the gas was gone. It was all people to their cars. We're going to see that the stores I was in literally I asked people the Children's I always the children's aisle for flu and cough and cold medicine was completely gone. There was nothing there so I asked her. You bring him out from the back and they said we don't have anymore. Bring out from the back when I got to the Pasta. Only organic expensive. Pasta was left. All the regular pasta was gone so I said are you. Bring it up from the back. Nope it's just whatever's here is what's here. So will they replenish sure but the supply chains? We'll get strained and we also know that some things that come out of China the supply chain already strained and so we're going to see more and more of that but it's just an interesting phenomenon when we talked to Walmart about what was happening in China. They kept all their stores open so they had a really good database. They said the Knicks of what people bought completely changed and delivery skyrocketed. We'll deliveries will skyrocket here and this will be a change to consumers abbots because once you start buying online you don't stop buying online and once you buy a product online you keep buying the product online and that's happened with every cohort in the economy. That's every product Jan. Thanks for coming in good to see you. Media reports say Elliott Management is taken roughly one billion dollars stake in twitter and nominated for directors to the board Elliott which is known for its activist. Campaigns has been in talks twitter's management about its desire for the company to find a full-time CEO twitter's Jack Dorsey also CEO of Square of course and he said last year he plans to move to Africa for three to six months this year. There's a Lotta talk over the weekend about whether this was a political move because just connections with the president but this seems like a pretty easy woman. Ceo has two jobs and he says he's moving to Africa these because it was a pretty easy target by saying you're going to go to Africa for three to six months. Easy time for one of these guys to step in and say Let's pay square. A square is a big company. I started it was kind of this thing I have on the side maybe promising. And so it's it seems like it's at least one job. Cheese will be next next on Squawk pod infectious disease. Doctor Matt McCarthy warns that the Corona virus outbreak in the US could be much worse than we think in New York state right. The person who tested positive was only the thirty second test. We've done in the state that is a national scandal. That conversation after this today's uncertainty may cause you to question your investment strategy but with the right perspective and investment solutions. We think it's possible to stay on track toward long-term goals with Janice Henderson. Abandon your dance. Not your financial goals. You're listening to squad from CNBC. Good morning everybody. Welcome back to Squawk box here on. Cnbc I'm becky quick. Along with Joe and and Mike Santoli our guest host this morning is Liz Young. She's director of Market Strategy Mellon Investment Management New overnight China confirming two hundred new cases of the virus and the outbreak is taking a toll on the economy. Their new survey data showed China's manufacturing activity slumped in February. The purchasing managers index came in at forty point three. That's the lowest readings since the survey was launched. Back in two thousand and four Japan meantime reporting five new cases overnight and controversial school. Closures began their today for most of the country. Creating child-care problems for millions of workers auto sales in Japan tumbled ten percent in February as the virus outbreak led to production disruptions and South Korea reported nearly five hundred new cases overnight bringing the total there to more than forty three hundred. That's pretty amazing. These just all this the ramp in China you see. There are Japan the article that in Japan people. The flu season is being minimized because people are washing hand so much and staying home from work that they're normal people are doing better because in that entire county how many. Let's do that all the time I started. I started started. Welcome and then you hear China. That's such a bizarre story where you said okay. Two hundred two hundred cases but the size of China in two hundred cases and yet you've got a piece of forty that's a disconnect and shows you. Here's what's doing. Not What China? Actually did they intentionally shutdown and tried to quarantine. The fear of fear of the corona value. Went out to work. Maybe I understand anybody. Test it to the number of new cases is not proportionate economic damage is being done and it's the same thing that can happen. Economic Shutdown is the type of thing that China did that by the way most of have been applauding them for taking these extreme measures because it meant that it didn't spread more rapidly for the amount of cases that you have a country like China to see the economic damage versus the actual number of cases. I mean they did order to come out of the workforce right. I mean they quarantine enough people. They don't all necessarily need to be infected. They're just not at work. They're not producing anything. And that's been the issue and then you pass through it kind of builds on itself you pass through a certain area and then those people can't go to work for a certain amount of time so it brings. I mean at some point. A third. Almost a third of the workforce out of we have this type of damping of economic activity with eighty thousand or ninety thousand total cases globally. Yeah what happens when we have if we have a million cases I then it won't be as proportional because we've already discounted it seems like we've already discounted by in case Canada. Lot of economic activity. Shut yes exactly and you just wonder if we could get a quick therapeutic that could deal with the symptoms with people that that get worse to be great then we may go back. Eunice tweeted earlier today. About how stem cell therapy supposedly worked at a patient who was very sick from this southern things go back after yard and the only thing that fear we might go back in in Hindsight. Say That at some point that we. I'm hoping I'm hoping and then the other then there's pockets scenario. Would you be worse okay? We are joined by a couple of gentlemen. That know what they're talking about. Thank you meg. Let's talk to your doctor. Scott Gottlieb former. Fda Commissioner and CVC contributor. He serves on both Pfizer's and Aluminum Boards and Dr Matt McCarthy An Infectious Disease Physician who is the author of superbugs the race. The stop an epidemic Thank you both for joining us. Just start off on a little bit. Different Tangent Gentlemen. In the I mean. When did we discover penicillin? It was like in the thirty s or so it wasn't I mean what we've done in the past ninety years in the whole history of human existence. It's amazing where we are right. Discovered in nineteen twenty seven points available in nineteen forty four. We've had a long and successful history of Diagnostics and therapeutics and we're better and better. We can see when we sequence to sing instantaneously. Almost we can do. It ought in an automated way. Why shouldn't we be hopeful that we can come up with a therapeutic quickly? Let me tell you the problem right now before I came here this morning. I was in the emergency room seeing patients. I still do not have a rapid diagnostic test available to well. That's easy to do. Is it not? Is it hard to manufacture? It is easy to for some countries. What happened in the United States is that the CDC created test Senate test out to fifty states and then said hold up? Don't use it. Let us fix it. How we hear that. It's coming very soon but I'm here to tell you right now. At one of the busiest hospitals in the country. I don't have it at my fingertips. I still have to call the Department of Health. I still have to make my case. Plead to test people. This is not good. We know that there are cases in the United States. There are going to be hundreds by middle of week. There's going to be thousands by next week and is a testing. What do you do people in the emergency room? If you can't test them well we call and we try to test. We isolate them. We have an outstanding team of infection. Control practitioners who know how to handle this. But they're hamstrung by the fact that we don't have a diagnostic test available. People getting sent home because I read reports that over the weekend. We're not sending people home. We're making sure they get what supportive care we can give but keep in mind we now have this in New York state right. The person who tested positive was only the thirty second test. We've done in this state. That is national scandal. They're testing ten thousand a day in some countries and we can't get this off the ground. I'm a practitioner on the firing line. And I don't have the tools to properly care for patients today. The challenges that providers can't take proper precautions if they can't talk about this for weeks. This is what we need to do. We need to have a vaccine strategy. I think a vaccine is a year or two away. I think we need to think about what we're going to have in the fall back. Stopped this when this. Hopefully this will start to dissipate in July and August. But it's going to probably come back in the fall and then what next and the only thing that could be available in the near term therapeutic antibodies prophylaxis or drugs. Vaccines Much lie isn't something existing in the HIV regimen. That might work on on a well. We have an HIV drug Kalija. That we're studying right now. It's in a clinical trial. That information is not going to be available for a while. The message today is we're hearing from this administration. That risk is low and that things are probably going to be okay. You don't need to change your lifestyle that's simply not true. There are going to be thousands of cases here. We have already moved from containment to mitigation. We are trying to lessen the severity. Here you're going to see widespread disruption to daily life. Do not believe the false. Reassurance does that mean in terms of what people should do on a daily basis. Look I think that I think we're GONNA have outbreaks here in the US. There's no question about that. I think in in parts of the country would past the point where we can contain this. We're going to have to look towards mitigation Washington State California. It doesn't need to become epidemic. We have a much more advanced healthcare system. We have better infection control procedures in hospitals. I think we have the capacity to do that. I agree we need to start taking more aggressive steps right now to make sure that this doesn't become China. Hit testing that how to China possibly be on the downside of the epidemic cow. Well and there's also something called the boomerang effect which we may be seeing in who right now. Which is that places. We think are clear are starting to have rates creep up. We may see things bounce back. But the key here is do not believe the false reassurance. I'm telling you the cases are about to surge and only then. Can we make informed decision that lower denominator on on the mortality? Absolutely so we're talking about mortality rate. I see numbers like one to two percent thrown around. I don't believe that the modeling we're using. We're using data out of Korea. We think that's the best thing that point. Two point. Four percent of that's twice as bad as a seasonal a very bad flu season. Keep in mind. Flu Kills Twenty five nine thousand Americans so worried that has been caused already in the economic effects are much more than twice the mortality rate of the flu. Where ten times more what do you. What do you make of the diamond for instance? Because I know that's not a typical population. But the case fatality rate. There's GONNA be above one percent probably when you know if you're an eight because it's an older population right. So if you're an eighty year old on a cruise ship. You're in trouble. I mean the case fatality rates over ten percent We're seeing ages one to nine exceedingly low right. There's a lot about this absolutely so widespread surveillance is going to start giving us information so that we can make these informed decisions about whether March madness needs to be cancelled. Are there different levels of panic around the country and the reason I'm asking is because I was in Detroit last week and this is a small example but I asked a room full of clients and investors are you worried about corona virus and they unanimously said. No and I said. Are you not worried? Because you think you're going to catch it in your still be okay or are you not worried. Because you don't think you're gonNA catch it and they said we're going to be. I think this is going for a while. This is going to be regionally. GonNa have regional outbreaks where you're going to have more focus on it in certain parts of the country Washington state. We're probably a couple of weeks away from some significant measures in Washington state to try to mitigate spread in northern California's. Well look a couple of weeks away. It's got an incubation period of potentially a couple of weeks so are we kind of just always going to be behind the eight ball on this where reacting to the news. Two weeks later. We have a lot of undiagnosed cases to his point right. Now there's probably you know low thousands of cases in this country that we now need to turn over the car. And so we're GONNA WE'RE GONNA have a surge cases before we start to catch up to the actual level of spread. You know it's a big country. Three hundred thirty million people so even if you have several thousand cases your risk of contracting it's still low but that could change very quickly. Japan is taking some pretty extreme measures like co closing schools that they're not diagnosing their cases there as aggressively as South Korea. That's where we're going to school closures here. Definitely you know. We're we're hearing that life's GonNa go about Just like normal. That's not true and to speak to the earlier question. I'll tell you I live in Westchester and when I'm walking around Westchester not really worried about corona virus. But when I get on the six train when I'm walking around Time Square when I'm in the emergency room every single day caring for patients. I am very worried joining today. Santo you've got is because I ride the subway because you're supposed to Scott it say how many. How many cases do you suspect you've seen if you had enough cases testing? How many cases would you have tested? We've seen one case in New York. I bet hundreds I bet there are thousands in the United States. And the longer we wait to get testing up and running the worst. This is going to be but I'm telling you as a practicing clinician. We're not there. I thought they were shipping tests to California in Bulk CAPAC- by the end of this week. So we have about one hundred public health. Labs will have a capacity to do one hundred tests day so it's a ten thousand tests a day by the end of this week. That still requires physicians like you to call the Public Health Department of State to order the test. That's cumbersome by the end of the week after that we should have maybe as much as another ten thousand tests capacity -Oday so we'll be at twenty thousand tests that we can run per day as we bring on the academic labs that's GonNa make a lot easier for physicians like our gas to order tests within their house. That's not what you want right. So that's right so a week or two from now is when we're going to begin getting real information right now. We'RE STILL LARGELY FLYING BLIND. So if you're worried about fear and uncertainty we're still in the thick of things stick. You had talked about the Scott earlier. Just this idea of testing and trying to get all those numbers out there did the CDC screw this up well the CDC's test didn't work they shipped a test. That was fall. Dana had to recall that we lost critical weeks. I think what we should have been doing. Some Latini is to promulgate that CD. Also working with manufacturers like Kijang Thermo Fisher Roche and working with the academic labs to get their tests out there as well so that way we had multiple shots on goal and we weren't just waiting for one test. Because if we had a hiccup which we did now we see the consequences that we lost some critical weeks. We lost about three critical weeks doctors both. Thanks thanks for being here. Thanks a lot when. Squawk pod comes back remembering Jack Welsh the former General Electric Chairman and CEO and original booster of CNBC. Who died at age? Eighty four we're back. This is Squawk pod. Our last segment today is one. We didn't plan to bring you the squawk box team got word. During today's broadcast that Jack Welsh had passed away at the age of eighty four. A working class kid for Massachusetts who was dubbed the manager of the century by fortune he was the longtime CEO of General Electric the former parent company of CNBC during his twenty years running g Jack. Welsh drove the company's market value from fourteen billion to more than four hundred billion. He was called Neutron Jack a nickname. He hated after cutting more than one hundred thousand jobs in his early days. Ceo Good corporations create a healthy atmosphere. Where people can thrive and grow and benefit their families and have great lives. I believe to my toes. In one thousand nine hundred six G acquired the parent company of NBC and Welsh was instrumental in the network's first foray into cable with the nineteen eighty-nine launch of the consumer news and Business Channel CNBC. Here's Welsh a few years ago with Joe in Becky on the red carpet at CNBC's twenty fifth anniversary party. It's no different than any other game. And what we had to do was to take it from being a dry text. Paper chose the locker room. Mchugh will show what the game was all about how the witness belt and Hololens spell. That's what's what's designed to Jack Welsh. Step down as CEO in two thousand one famously setting up internal succession race for his job. But General Electric struggled in the wake of the September eleventh attacks that Tuesday after Welsh left the company and the Financial Crisis of two thousand eight which was devastating for the lending unit that Welsh had dramatically expanded while CEO during retirement. Welsh continued to participate in the dialogue of modern business. He wrote several books as a management guru focused on winning. How can I have a regret? I mean on Irish Kim. Salem winds up with the greatest job in the world and I was trying to make ten thousand bucks to level. I A great run. What a life and anybody. That's been CECE for For a while I mean this is not talking about a really a business associates talking about almost almost as close as a as a family member. 'cause goes all the way back. That was Jack's idea to outbid Westinghouse to buy financial news network back in the early nineties and there were people a lot of people take credit for owning CNBC. Now that that were wringing their hands and afraid to spend the money in Jack I know for a fact pushed it through and bought. And that's when we that's what I met him in about nineteen ninety two and he he loves CNBC so much that we all got to be like this thing we'd be at a function. I remember the first time it I was in total. Nobody and we were up in Connecticut at the The bridgeport charity function. And he invited me to come and sit at his table because he loves CNBC so much and that became a really long relationship is very very. We're all very close to dinner at his house. Many times the two of us and I got married. He and suzy hosted us at The Red Sox had an impromptu Engagement Party for US Golf New Court beat beat Greg. Norman beat Greg Norman without not not with strokes be regularised before seventy one thing. Warren Buffett always says is that You have to have people that you don't want to disappoint in life that that drives you to be better. Jack was one of those people who never wanted to disappoint. He was very close. Very warm but also you wanted to make sure you didn't disappoint him as an employee or as person To make sure you could live up to the standards that he didn't place on you but that you put on yourself because you wanted to make sure he breathed the GE way into CNBC TWO. We head cards initially there. I remember no headaches. Which meant never do anything. Where if someone found out what you were doing where you sort of disguise what you're doing boundary list behavior. Didn't it was another thing? We had a card with six ten minutes on it and and we still had we we took six sigma at CNBC. Which one mistake in six million tries with difficult for new sports we? We never really h-hit that but I mean the the what Jack Meant to CNBC and NBC is permeated across the entire land. It's worth noting somebody so much of what people take for granted about business kind of came from him to hold be one or two in your industry or get out and the idea that the core business. Ge was kind of good management during his reign. That really was it. Yeah it was a conglomerate but you kind of had this ethic and discipline that pervade every component of the company had to be profitable and running that through and he had the Jack Welch Management Institute at Strayer University to try and pass that on to future generations. Stop trying to help people become better. Better managers better better. You'd never know it's Oh boy. Here's an email from Jack and they come in at any time because he was watching. Cnbc right right to the Do you remember when Mark Haines got in trouble for Downmarket Day? I wasn't there that legend about it. You were there you tell the story Mark Ed. It was scary day and we have middle managers That have one idea. And then we had a guy like Jack Welch so Mark Canes Wore a Red Cross helmet because the futures are down. I don't know back then. Probably two hundred hundred points a lot back then so we had the middle management type came out and he was running the place and just remarking said get that off. Don't ever put that on again. You're in trouble. Just reading him and then factors back then. A fax came in from Jack. Welch said to this Guy Bruno Anyway. That was the greatest moment on. Cnbc what markings just did keep it up. Just watch it. It's like watching someone you know is wrong. But you can't say because you work form and then seeing the guy above him. Due to the way it played out was was amazed that was Jack Active in everybody's life and active in every aspect of the business. All the way down. I mean when you said you were not met. I was a nobody and I met him and he was so engaging wanted to know about the business. Wanted to know what you were doing on every step of the way because he just cared that much about every aspect of numbers better than anybody back then was described as a a fleet or a SPEC on the flea on the on the tail of the dog of the pack that was still new rate every day new to the to the exact numbers with the ratings were every day it was an amazing really smart but also you know the struggled with with some speech issues. Entire left to right up to the greatest. Ceo and by the way came to support all of these stuttering gals. There was one that I went to an hosted and he was there every single time to make sure that other people could look to him as a role model people who had issues with things like that there will be. I GUESS. A service Either Thursday Friday the public. If if I got that right public is this is it ten. It's going to be celebrated by Cardinal Timothy Dolan the Archbishop at Saint Patrick's Cathedral determined at this point but it will be open to the public that service the burial will be private and in lieu of flowers. The families asking that donations be made to the boys and Girls Club of Salem Massachusetts. Suzy was such a I mean it. He was so joyful the last two decades two decades of life because of Susie Welsh or thoughts do go out to Susie and the rest of the world family. Jack died at the age of eighty four. And that's the show for today. Thanks for listening to Squawk Pot. We'll be back here tomorrow. I'm Kelly Evans host of CNBC's the exchange which is now a podcast subscribe today. It's your one stop shop for the day's top business stories. Plus listen in for lots of original reporting in-depth conversation and some of the best of CNBC's award winning investigative work. Subscribe to the Exchange for free. And you can always catch the exchange live weekdays at one. Pm Eastern only on CNBC. So you then.

CNBC US China Jack Welsh CEO Matt McCarthy Federal Reserve Japan flu Mike Santoli CNBC Becky Joe Kernan Scott Gottlieb Jack New York FDA Janice Henderson Walmart
More Americans are working from home

Marketplace with Kai Ryssdal

25:41 min | 1 year ago

More Americans are working from home

"One Thousand Two hundred and ninety three points. What a difference a weekend and some implied promises from central banks can make from American public media. This is marketplace in Los Angeles. I'm Kai Rozelle Monday today. The second of March could has always have your long everybody so look. We should be clear here right. Nothing has changed for the better corona virus wise since last we spoke on Friday in fact there have been fatalities in this country. There's more testing being done so there are more reported. Cases and conferences and companies are canceling travel and meetings by the day but some big central banks Japan the European Central Bank in the US Fed in particular have all come out and said in essence. We got it. We're watching we're ready. If push comes to shove we will jump into keep things from getting too terribly much worse and that in a nutshell is what you need to know about the markets today. The major indices up four five percent. Reclaiming a chunk of what they lost last week but the macro economic reality which in case. I need to remind you is not the stock market is still kind of up in the air. Both here and globally in China where we have gotten marketplace's Jennifer pack on the phone. Things are only just now getting back to normal and barely that some big economic numbers came out to the downside over the weekend. Hey Jennifer Hey so first of all I guess what's the Moon. What's it like In Shanghai today well life is slowly coming back to the streets Shanghai. You see a lot. More PEOPLE. More cars a lot of bikes and at restaurants. Ucla Lot more of them offering sit down dining services. But only if you could sit very far away from each other And there are some restaurants to last orders still at six thirty if you come out at about eight. Pm Sometimes ten. Pm You'd think it's midnight or overnight you know has streets are pretty empty so if you go anywhere now in public spaces you essentially everyone is required to wear a face mask Which are very uncomfortable to wear. It's hard to breathe and of course there's a shortage of them so for all intents and purposes people are still pretty much forced to stay at home which is the last place you can breathe freely right and so. I guess the corollary question is what's the mood like given all those restrictions and given The way you have to sit far away from people restaurants. I mean. What's the mood? What are people? What are people thinking? I think there's a lot of anxiety still it. Oh people are pretty fearful and there's still a lot of unknowns about How this virus is being spread out. So people are very cautious. And you know almost every day we're being bombarded with text messages from the government saying a. Cancel your social gatherings. Stay at home. Where mass if you have to go outside eat apart from your colleagues sit in separate deaths you know. It makes people very paranoid and so. There's only a handful of people that I've seen over the last month. Who are willing to come out and take the risks All right so the economic nuts and bolts then The the manufacturing and service sector numbers that came out late Friday. Us Time over the weekend for you. they were not great both in in non-manufacturing and and also in manufacturing actually getting things made. Yeah they're not great. They both fell below fifty which shows a contraction but for businesses especially for January and February. These are really slow months because of the New Year holiday And because there are close to three hundred million workers working hundreds of miles away from Their hometowns some of them take extended holidays so for all intents and purposes march is when companies really have to make their quarter one targets And so this is going to be the crucial month and the key question for a lot of these businesses is whether they can resume their operations and at the moment a lot of businesses say. It's becoming very chaotic. And the two key things that are preventing them from restarting our travel restrictions between provinces and also This self quarantine measure for fourteen days. There are lots of places. They're requiring anyone coming in. Not just from the epicenter of the virus outbreak of Kobe province. But anyone coming in no matter where you are and that takes away from businesses Less than then. I'll let you go in your personal life. Are they still You know checking your temperature when you walk in the building or are you still doing. Carry out food because nobody else wants to go out is it. Is that still happening constantly? I'm getting my temperatures check when I go into the shopping malls into my Residential area If I go into the office building inside the office we have to measure temperatures for sure. How accurate that is. I don't really know because the difference is so vast in terms of takeout There are more places to eat of course but I have to make sure that I make the cut off because as I said a lot of them are closing quite early so I have to eat dinner by about six o'clock Jennifer back In Shanghai thank you Jennifer. Thanks on Wall Street. Today there are a couple of options for what happened. Traders truly believed the worst is past. That's one this was a bounce of the dead cat. Variety is another people saw the losses last week and decided. Today was a good day to get in. That's third which ones right. Who knows but I know this even though I don't get to pick it's going to be the happy music when we do the numbers as I said a minute ago companies are scrambling to figure out how to stay up and running if and when people can't come to the office anymore. I know we are and that means working remotely is having a moment. Marketplace's Megan McCarthy Carino has more on the challenges and the potential here New York. Real Estate Firm Square foot has started making emergency plans. We just wanted to be haired. Should the alarm bell really go off head of HR EUGENIE FANNING? Says she's asked employees to hold off booking business trips to stay home for two weeks if they've traveled through affected areas and to make sure they take home their laptops at the end of each day of what we do can be done online. Jp Morgan has announced similar plans while Nike temporarily shut its Oregon Headquarters for cleaning over the weekend and asked employees with links to a cove in nineteen case at a nearby school to stay home. Remote work has increased dramatically over the decades says Sarah Sutton head of job listing site flex jobs but fully remote works still makes up only about five percent full-time jobs in the US. A lot of organizations are doing remote work right now on a very ad hoc manner. They don't have a formal plan in place that leaves many remote workers feeling isolated and unsupported. Kelly Williams joost a business strategist who helps. Companies implement flexible work. Arrangements says Cova nineteen could be a turning point. I think this is an opportunity to become more intentional. And strategic about making flexibility in the way work is done part of the cultural. Dna remote work allows companies to pull from a broader talent pool. Lower real estate costs and boost employee productivity but does require additional training to make sure employees effectively communicate. I Megan mccurdy Carino for marketplace. Jack Welsh died yesterday. The longtime chairman and CEO of General Electric one of the most celebrated executives of his day was eighty four years old. The legacy Welsh leaves is complicated. It will be debated and studied for years in particular the way he changed. What American companies do prophets above all shareholder value? First in line marketplace. Song has that one General Electric once upon a time explicitly serve many masters workers research labs and last of all shareholders. That's according to company documents in the fifties by Nineteen eighty-one came a new boss. Jack Welsh he slashed underperforming divisions and workers he spoke at Mit into thousand six. You bring them in. You say like this isn't working. You're in the town. You'RE NOT GONNA get any money here. Let's over the next year. Get you to move on. By then. Cutting costs and pleasing shareholders was in vogue on Wall Street and worked for GE it stuck way outperformed the market during the Welsh decades of the eighties and nineties. Nicholas Heymann is longtime analyst at William Blair. He had no problem redefining the landscape. And what would work and in that sense and became. Kinda the Paul Bunyan of shareholder value creation shareholder value often came at a cost to workers. It undid the postwar corporate. Social contract says Rick Warts Panetta Drucker Institute. His book is the end of Loyalty G. at vaporized about one hundred and seventy thousand jobs under Welsh up until that time I only determined downsizing it really entered the American vernacular yet these kind of huge mass layoffs were still seen as pretty scandalous when Welsh stepped down in two thousand one. Ge relied heavily on its finance armed. Ge Capital which Welsh built up and when the financial crisis came years later the company got hit. Hard law professor Margaret Blair at Vanderbilt says that's when Welch's tone seemed to change as the company got into trouble. He conceded that maximizing share value is not always the smartest thing to do. Do you suggest that he changed his mind overtime. He must have begun to see there. Were big problems in the underlying business. Welsh may benign to something today leading groups including the Business Roundtable black rock and the Davos World Economic Forum are rethinking the shareholders. I model and its limitations. I'm Scott Tong for marketplace. Coming up the outcome might have been different and instead they ended up back in jail. Which is everybody knows. Is the most expensive solution to social problem. The parole officers best tool sometimes is jail. But first let's do the numbers really haven't music down throws up one thousand two hundred ninety three point five percent closed at twenty six thousand seventy three. Nasdaq spiked. Three hundred and eighty four point. Four point four percent eighty nine fifty two the S. and P. Five hundred events one hundred thirty six points. Four point six percent thirty ninety three thousand and ninety among the big gainers apple. It boosted nine point three percent today. After an analyst upgrade apple products in his strong balance sheet the theory goes help it withstand uncertainty related to covert Nineteen J. D. dot com jumped. Twelve point four percent. That's Chinese online retailer. Said it expects revenue to rise at least ten percent in the first quarter and that it's benefiting from home deliveries as China's Jennifer was talking about works to contain corona virus. Bond prices rose yield on the year. Treasury note fell the one point one five percent. You're listening to marketplace this is marketplace. I'm Kai Ryssdal. After twenty five years the gavel has come down on judge. Judy Judy Shine. Lynn announced. Today she is going to be wrapping up or hit courtroom show next year. Finland is one of the highest paid stars on television. Getting it is reported. Forty seven million dollars a year and her show is the most watched series in syndication. Now syndication might not be familiar to those who've grown up in this world of streaming so marketplace. Jasmine GARS explains how it works Tim. Brennan is a big judge Judy Guy. He watches almost every day. He says there are a lot of court shows. But there's only one duty should've put up with any mess. Some of those other court shows are just kind of ridiculous. Don't play with me. I don't like it. Brennan watches her on Fox six in Milwaukee. But she's on the CBS stationed in La. That's because syndicated shows are sold station by station across the country. Meanwhile a prime time show like survivor only airs on. Cbs Channels David. Lieberman teaches media management at the new school. There's certain times a day that the networks don't control They do control primetime usually but not daytime and that's where the local station might say. We're willing to buy this show from you. Making it to syndication. Either reruns like Seinfeld or ongoing shows like judge Judy can be really lucrative but the rise of streaming could change the model says Tim Hamlin Media analyst with Virtual Group. A show like judge. Judy may actually be more attractive. If packaged up and and more directly accessible to consumers instead of having to go through the intermediary pipe if you will of TV station you could make the argument that the news syndication may actually be through streaming services. Silence says there will be reruns of judge. Judy and she's starting a new show. Called Judy Justice. No word yet on where that will air. I'm Jasmine Guard for marketplace. Paris fashion. Week wraps up this week ending a month of regular runway shows in Europe and New York fashion. People always won't necessarily be thrilled. I'm pointing this out. But these shows are on their face symbols of consumption and excessive at a time when business is a whole bunch of different industries are trying to be more. Sustainable rituals. Karnowski wrote in vogue about how the fashion industry is rethinking the runway thanks for coming on. Thanks for having me. What should we make of the fact that Here we are a couple of weeks into fashion month as I gather is now called and climate change is becoming. A thing have have The fashion houses and designers kind of seeing the light. That's GONNA still up in the air but they have seen the light that people are caring that is for sure and there is sort of growing demand for more quote unquote sustainable fashion. But this story that I read about fashion weeks was Was really trying to sort of question. The whole role of the fashion show. Yeah sure One of the things I learned reading this piece is that fashion month. is not just like New York fashion week in Milan fashion week in Paris. Fashion Week. There are. There's one in Copenhagen. There's one in Helsinki and these shows certainly company in L. Stinky as you talk about have sustainability goals right. I mean they are. They are challenging designers and houses to meet their standards. Helsinki has been doing it longer and they have a comprehensive approach to how they do their fashion show everything from you know energy efficient lighting to having everyone use public transportation to get to the show rather than all private vehicles and flights but they also only show brands that have sustainable practices. The Copenhagen is a professional so it was kind of a big deal when they announced a few weeks ago that if brands want to continue showing there they have to implement a set of criteria for for how they produce their clothes which is a big step from the New York and other fashion shows. Do while I was Gonna say because you you read about and look at pictures of New York Fashion Week at number one. It's all over Manhattan right so you're taking cars and black cars and all this stuff and it's huge parties and and a giant normal environmental footprint Exactly yeah it's an enormous footprint but it's also just scratching the surface of the larger industry footprint. Roth so that goes to the the takeaway question. Which is it's great to Copenhagen and Helsinki doing this but is gonNA matter until New York and Paris and Milan actually make this a priority. That's a good question There are some designers that are really trying to push the envelope There's one in London. Patrick macdowell. Who's WHO's featured in the story. He made a commitment to not design new clothes. More than I think. It's once a year and he is restyling his collections for different shows and he host more interactive events and that that sort of thing is interesting and getting people thinking about the more fundamental questions of the fashion show will right because also if you're only designing new clothes once a year that's a business model decision that you're making it is and that's the point that he really drives home when you talk to him because he's not depending on the wholesale model as he sells more directly so it does pose these much larger business model questions for brand flit sell to large retailers. That do depend on. This cycle. Rituals are not writing Invoke business about climate change in the fashion show. Totally fascinating Greece. Rachel thanks a lot. Thanks for having me. Really one of the rare bipartisan moments in Washington. The past couple of three years has been criminal. Justice Reform the first step act. It was called cuts to mandatory minimum sentencing. Was it's big provisions a less well known and less well resource part of the criminal justice system though is what we do or more. Don't do when people get out of prison probation and parole. Jason Hardy was a parole officer New Orleans. When that state's incarceration rates were the highest in the country. He wrote about his life on the job and the resources he was given to do it in a new book called the Second Chance Club Jason. Welcome to the program. Thanks for having me. Tell me how it was. You came to be a pro officer in in New Orleans because it was a circuitous path we should say it really was I had spent most of my twenties kind of bouncing around from one profession to another and I was twenty nine kind of working in retail and just sort of trying to find something with a little more meaning and I was just kind of doing some reading on some things that were happening in the criminal justice system and it just really sounded like a place where someone really do some good if they got involved so probation and parole was Kinda the job that was available at the time and So I kind of put my name in the hat and thought I'd go in and see what happened. Tell me about the first day after you finish your training well. The first day was a bit of a shock I shoot up and I was given two hundred twenty case files. Most were struggling with drug problems. had been poor for almost all their lives and kind of the first question was what would tools. We have available to help these folks and I learned in pretty short order that really the only tool we had was the jail and that kind of the people who are the best of the job were people who kind of found end rounds sometimes. That's giving a pep talk sometimes. That's being a listening post Sometimes it's something slide that you know might have gotten him walked up ten years before When when good thing that was happening when I came aboard when the state was kind of slowly but surely coming around to this idea that locking people up was not really rehabilitating them and so they were allowing us a little bit of latitude to kind of say. You know. This isn't a big deal. Let's give this person another shot kind of try. Something new him. It should be said here that With that latitude did not come extra resources or funding. No no and that's that's one of the things that I really would like people to know about. This system is that I think it has tremendous potential in that you know when we did get resources and we can put them with the right people. We kind of amazing results but they were so few and far between I can name probably fifty one hundred people that I dealt with where if I just had had the kind of right spot to put him whether it was a detox rehab or just get them to professional counseling. The outcome might have been different and instead the ended up back in jail which as everybody knows is the most expensive solution to social problem. Tell me since you mentioned the people you're dealt with. Tell me about Sheila tell me her story. She was up against a lot. She was living with her mother. Who'd been fighting a crack edition for about twenty years. She dropped out of the eleventh grade and wasn't really interested in going back in school and she was actually on probation because she had flushed her boyfriend's drug stash down the toilet when the police showed up at her house. One of the things that really worked with Shula and and this really came from just taking the time to talk to her and get to know. It was kind of figuring out counseling. Go a long way and as much as most of my fellow peers and I tried. We weren't trained counselors and so with. She came down to getting her in a courtroom administered program where she was able to meet with a licensed counselor. You know on this On this thing about your your fellow. Peos the guy you've shared an office with his name is Charles. Right if I remember right Yes that's right. There was a whole lot of learning. You did from him. That was not book learning. It was actually being out in the field and going into these houses. We're dealing with these people and and figuring out I in the moment how to handle them absolutely He's someone I'll be indebted to for the rest of my life he. He's a true pro he just could pick up on things that in the early going. I really couldn't you know he could go into a house and you know he could speak with the family. You could kind of look around. And he could say you know the grandfathers the person in this house who has the influence. That's the person whose side we've got to get on and just always knew what question to ask to kind of get to the heart of the problem in in in a job where you have limited resources those are really the skills you need and he let me kind of Beg Barrow and steal from them and take all his tricks but On my best days I was never path as he was. You know. It's uh well not not funny. But it's interesting that you know you talk about him in the epilogue in what he's doing now and you mentioned he's been doing this for twenty years And in the epilogue you say he's. He's counting down every last day of his eighteen months till he can be done with this and it's not because he doesn't think it's been worthwhile just because this work really takes its toll and even the very best folks in this job have failures. They have people that they can't get to. They can't reach and I you know I certainly think with more resources. We could do better but there are cases where you do have the resources and the person you're trying to get them to just isn't quite ready. I think that more than anything else. Kinda breaks your heart overtime. He even the best people at the job still go home someday seeking their heads saying. Why couldn't we do more? Your heart broke if I remember right from this book in Four Years Four Months. Eighteen days and you had to do something else. Well maybe a little sooner than that but I tried to carry on as best I could but Yeah it just. I got to the point where I felt like frankly sometimes I would. I would fall people for things that weren't their fault. And that was kind of my warning sign that you know what Maybe it's time for you to move on to something else. It's a book called the second chance club hardship and hope after prison Jason Hardy Rooted Jason. Thanks a lot appreciate your time. Thanks so much for having me. I forgot an excerpt of Jason's book. Same place we always have them online marketplace dot org this final note on the way out today picking up where we left off on Friday. The Caveat emptor part of Stock Picking Remember. I mentioned that ticker symbol. You want if you want to invest in the hot new video conferencing companies. Zoom is Z. A. M. Z. O. M. Well here's how good the last month has been for Z. M. Burstein research says zoom has added more user so far this year two point two million active new users in sixty days than it did in all of two thousand nineteen. All right. We gotTA GO DOWN INDUSTRIALS ONE THOUSAND. Two hundred ninety three points to the good today. Five percent the Nasdaq up. Three eighty four. That is four point. Four percent the S. and P. Five hundred picked up one hundred thirty six points that is four point. Six percents or daily production team includes Bridge Bonner and Corbin Maria. Han Horse Sean. Mc Henry Daisy Blasios and Bennett. Mercer meals is our special projects producer. I'm Kai Ryssdal. We will see tomorrow but this is APN.

Jack Welsh Judy Judy Shine General Electric Shanghai New York Jason Hardy Kai Ryssdal US China Paris New York Jennifer analyst Los Angeles Ucla Jennifer Hey Kai Rozelle
Masking Coronavirus

Pro Rata

10:15 min | 1 year ago

Masking Coronavirus

"Iraq where we think just ten minutes smarter on inclusion of Tech Business and politics by what it takes lessons in the pursuit of excellence the New York Times bestselling book by Blackstone Stephen Schwarzman. Today Show Jordache delivers an IPO and read it. Ceo Slams Tick Tock the first masking corona virus president trump yesterday put Mike Pence in charge of coordinating America's response to Corona virus and continues to express optimism that we won't experience the same sorts of outbreaks that other countries outside of China have been experiencing including Italy Japan and South Korea. I don't think it's inevitable. I think that there's a chance that it could get worse as a chance it could get fairly substantially worse but nothing's inevitable one thing. That didn't really come up during that press conference though was facemasks possibly because they've become very hard to come by including those high end ones normally used by medical professionals. My local drugstore here in central Massachusetts has been sold out for weeks. Amazon has warned against price-gouging unmasks and there are lots of reports of facemask horrors. Yeah that's the thing. Facemask hoarders why it matters is that while the CDC doesn't yet recommend that healthy people should wear masks in public. Plenty of them are and that's creating shortages for the people who really need them. Medical professionals dental professionals and people sick not only with corona virus but other more common airborne illnesses like the regular flu. The bottom line. There are not enough masks to go round today let alone when we might actually need them. If fifteen seconds we'll go deeper with. Npr science editor. Marie Goi but I this in the New York Times bestselling book what it takes lessons in the pursuit of excellence. Blackstone Steven Schwartzman share some of his lessons from creating and building one of the world's leading investment firms recommended by Jack Welsh Janet Yellen Radio and more get the book on Amazon or add. Read what it takes Dot Com. We're joined now by Maria senior editor for NPR science. Prison trump yesterday during his press conference basically told Americans that they should approach corona virus like we approach general flu season. Wash your hands. Stay home if you're sick don't strangers. He might not have said that one does that advice. Generally track with what health professionals are you. Yes in that. It is highly transmissible like flu or the cold. And so you WANNA be washing your hands. You WanNa be practicing what you call good respiratory etiquette which means you know coughing or sneezing into your elbow rather than just letting your particles go out in the air or you WanNa if you have to blow your nose. Make sure to dispose of that tissue properly. Don't leave it out there for someone else to pick up because it could be you know. Ladan. With virus particles the one disagreement. It seemed onstage. Was this question of inevitability in the US right this idea that the CDC has said that additional affections probably lots of additional infections. The United States is inevitable. President trump got asked that and he said No. I don't think so. Is there any reason to side with trump oversee on this? I'm on the science desk so high on the side of science and I talked to a lot of health experts. I think what we're seeing is that this is a highly transmissible. We should prepare. Don't panic but you. We should be preparing for the fact that it's possible. We could have an outbreak of Kevin. Nineteen in in your community. So let's speak about preparation and specifically this issue of face masks so I was in an airport the other day. Lots and lots and lots of people wearing facemasks does that make sense. If I'm a healthy person and I am going to an airport or another very crowded place around a subway. Is there value in me wearing a face mask to protect against infection? That's a really great question. The science is really really mixed on this and we should note that. They're different kinds of face masks so the gold standard facemask is. What's called an end? Ninety five respirator. The ninety five means that it's designed to block out at least ninety five percent of small particles it's really good blocking airborne pathogens. That's what healthcare workers where there is no general recommendation for the public to wear them one of the reasons why you don't want to cause shortages for the people who actually need them like healthcare workers or sick people who want to keep their virus lead and particles in if you're going to hospital there's also the problem that a lot of people tend to wear masks incorrectly. They're only effective. If you have a tight seal around your face you're not supposed to reuse them day after day. You have to be careful about how you take him on and off. There's a whole protocol to it and the average person may not be using it so no. The recommendation is no if you're a member of the general public going out and about don't need to be wearing face mass. There's also surgical masks and those are really just a physical barrier. I'm talking about like the Gazi green or blue ones that you see on. Tv shows so those are just a physical barrier. So does that mean. They aren't effective given what you said about the tight seals that those aren't effective. They're not useless but they're not effective like in the promise that if people are wearing a master's some people tend to think that they are secure. That's all they gotta do and can give you a false sense of security. Surgical masks will block basically if there's a droplet in the air it'll block large droplets. They're really useful if you are sick and you don't WanNa have your coughing. You don't want to infect other people that's where the general public should be wearing if you're sick and you know if you're sick you should be staying home but if you have to go to the doctor and call them first before you go in because the last thing you wanna be doing if there is. An outbreak is overloading healthcare workers or infecting other people. Definitely call your doctor first but the people who should be wearing master people who are sick because those are good at containing your virus lead and particles from getting out there and infecting others. Let's talk a little bit about the business of masks. I guess so my local Pharmacy chain there are no masks right now. They are sold out of these things completely. I know that is a common thing all over the place. Is there evidence right now? That for lack of Bertram healthy. People are hoarding facemasks. Well there is evidence that we don't have enough supply to meet demand. That's for sure I think panic. Buying is a human reaction. It's not a necessarily a useful reaction but what I will say. That porting isn't helpful because you really should be leaving them for the people who need them sick people and healthcare workers right and again. Good luck scoring in ninety. Five respirator masks. Right now if you go on Amazon sometimes you'll see people selling them for like three hundred dollars. Amazon has threatened to remove sellers. Basically price-gouging facemasks. I'm not sure if they've actually done that yet though. I can't speak to that but I do know that we have shortages and it's hard for manufacturers here to ramp up so one of the things like demand for masks as high everywhere around the world right so whatever supply we have in the US. It's got to be made here and basically the machinery that makes masks is pretty specialized serene that's already optimized to make as many masks as normal demand so it's going to take a while to ramp up our supply here final question for you talk about kind of mask manufacturing and other countries and how you know ours are being made here. Mostly talk just to me a little bit about internationally. It seems that whenever we see any media coverage of corona virus overseas whether that be and China or South Korea. The pictures are almost always of people wearing masks. Is that a cultural difference. Do they simply have more of them? Is that a policy or regulatory thing outside of the US. I guess my question is why it seems every time I see the story particularly in Asia and their photos or videos seems everyone. There has a mask you know. That's a great question. A lot of it has to do with cultural reasons so you have to remember lake. When SARS hit about two decades ago it had Asia particularly bad and so a lot of people took up the habit of wearing masks. There's also cultural reasons there where people wear masks when they're sick. There's also air pollution concerns that's been decades where people go out wearing masks whether they're effective or not it depends on the type of mask against air pollution but yeah it's as much cultural as it is messaging now. I should say that. In China there have been reports of officials urging people to wear masks if they are in public but the mask wearing in Asia is deeply embedded in the culture fair number of NPR. Thank you so much for joining us. Share Dan my pleasure. My final two right after this in the New York Times. Bestselling book what it takes lessons in the pursuit of excellence. Blackstone Steven Schwartzman share some of his lessons from creating and building one of the world's leading investment firms recommended by Jack Welsh Janet Yellen Radio and more get the book on Amazon or at read what it takes Dot Com now number my final two and first of his door. Latch the on-demand food delivery company that this morning announced that it's confidentially filed for an IPO for starters publicly announcing you've done something confidentially is confusing so to be a little clearer door dash has submitted paperwork to the Securities and Exchange Commission. That is not yet publicly available to the rest of us as part of a law passed several years ago that gives more flexibility to emerging companies. If door DASH does ultimately choose to go public. It's registration will be online for all to see. The bigger picture of why this matters is the door dash believes investors will buy into its business model despite widespread criticism that the on-demand food delivery business can't be profitable even at massive scale. Uber eats his arguably been dragged on Uber. Stock Post mates is in endless. Ip Limbo and GRANDPA was profitable when it was more of a tech middleman than an actual delivery company and now up CEO publicly. Rues the industry's current path for timing best guess for DASH IPO in the second half of this year which means that we might get Jordache and Airbnb back to back and finally some shots fired yesterday in these social networking world. When Steve Huffman CEO of read it said during a conference panel discussion that Popular Social Media. App Tick Tock is fundamentally parasitic and quote going further. He said quote. It's always listening the fingerprinting technology that uses truly terrifying and could not bring myself to install an APP like that on my own expect those comments to be replayed in Washington. Dc particularly as privacy. Scrutiny of the China own tick Tock increases. And we're done VIC. Thanks for listening. It's my producers showers. Naomi Shaven have a great national toast day. And we'll be back tomorrow with another pro rata podcast.

Amazon China United States CEO Asia New York Times bestselling CDC NPR president Steven Schwartzman Dot Com South Korea Jack Welsh Massachusetts Show Jordache Stephen Schwarzman flu Janet Yellen Radio Mike Pence
NPR News: 03-02-2020 12PM ET

NPR News Now

04:39 min | 1 year ago

NPR News: 03-02-2020 12PM ET

"Live from NPR news in Washington. I'm Lakshmi Sang. The State of Florida has identified. Its first two cases of cove in nineteen in people infected with the corona virus and peers Greg Allen reports. The Governor of Florida has declared a public health. Emergency cases in Florida are both in the Tampa area. The first involves a man in his sixties. Who's in the hospital being treated for pneumonia? It's not known how he became exposed to corona virus health departments working to identify and isolate all who came into contact with him the other cases a woman in her twenties who recently returned from Italy. She's under medical care at home. Florida Governor Rhonda's Santa's discussed the two cases in a news conference in Tampa. Despite these cases the overall media threat to the public remains low With that said we do anticipate that More will test test test positive. The public health emergency insures that healthcare providers immediately report all suspected cases of Kobe. Nineteen to the state so that individuals can be isolated and monitored Greg Allen. Npr News Miami communities across the US are working to help slow. The spread of the novel Corona Virus. First emerged in China in December. The global economic toll of the outbreak remains a concern however. Us markets are trading higher this hour all major market indices up way more than two percent. Npr's Jim Zarroli. Reports on the rebound from last week's market correction as the week gets underway. Investors are hoping the Federal Reserve and other central banks will cut interest rates as a way of calming fears about the Corona Virus on Friday. Fed Chair Jerome. Powell issued a statement saying the Fed was monitoring the crisis and would intervene if necessary. Investors are worried that the epidemic is slowing economic activity around the world and they drove down stock prices last week the Dow fell twelve and a half percent for the week. Its worst performance since the two thousand eight financial crisis meanwhile the interest rate on government debt keeps falling a sign of diminished investor confidence in the economy Jim Zarroli. Npr News New York. The Democratic presidential contenders are making their final pitches ahead of Super Tuesday. We have details from NPR's Windsor. Johnston Super Tuesday is the single day when most states hold contests to pick a presidential nominee and the most delegates will be alloted to candidates. Elaine Kmart as senior fellow at the Brookings Institution says it could be a turning point for the remaining contenders Super Tuesday's when this thing gets real and it gets real not just because of the numbers of delegates up for grabs but it gets real because the metric changes. It's not did you win this state and by how much it's how many delegates are you winning fourteen states and one. Us territory will hold nominating contests on Tuesday to award more than thirteen hundred delegates. Windsor Johnston NPR news from Washington. This is NPR news. Jack Welsh the legendary former. Ceo of General Electric has died at the age of eighty four. Npr's Berliner reports Welsh spill ge into an industrial powerhouse the most valuable American company during the Nineteen Ninety S. He was brash and outspoken. Fortune magazine dubbed him the manager of the century in nineteen ninety nine he made big acquisitions and he cut layers of bureaucracy. Telling division managers to quote fix it close it or sell it but he was also criticized for his management style gaining the nickname. Neutron Jack for slashing tens of thousands of jobs after retiring from GE in two thousand one he kept a high profile writing bestselling books dispensing business advice on TV and backing Republican policies. Worry Berliner NPR News Sweden is suspending flights to and from Iran over the corona virus outbreak Iran has reported more than fifteen hundred cases of the corona virus among them sixty six patients died from Kovic nineteen. The disease caused by the virus. Afghanistan Taliban reportedly are demanding that five thousand Taliban militant prisoners be released before they take part in Inter Afghan peace talks spokesman issued the ultimatum as reduction violence period was ending under a deal between the US and the Taliban up to five thousand jailed Alabama would be freed in exchange for the freedom of up to one thousand Afghan government prisoners by March tenth. President Ashraf Ghani was not involved in the talks and has rejected the demand the dow now up more than seven hundred fifty points since the open or roughly three percent this is NPR news.

Npr NPR US Florida Greg Allen Windsor Johnston NPR Jack Welsh Fortune magazine Taliban Tampa Washington Jim Zarroli Lakshmi Sang Nineteen Ninety General Electric Federal Reserve President Ashraf Ghani pneumonia
Feeling the Bern

Pro Rata

11:12 min | 1 year ago

Feeling the Bern

"Where we take ten minutes getting smarter on the question of Tech Business Baltics sponsored by what it takes lessons in the pursuit of excellence the New York Times bestselling Book Stone Steven Schwartzman. I'm Deborah Mac. Until they show a big play for your financial data and what tech means for the future of democracy but first feeling the burn Vermont Senator Bernie Sanders is now the clear. Front runner for the Democrats is presidential nomination having one New Hampshire and Nevada while placing a very close second in Iowa. He's also polling very well in many of the Super Tuesday states and none of his moderate rivals seem interested in dropping out. The political reaction has been kind of a mirror. Image of two thousand sixteen when Republicans seem to erupt in a civil war over the possible nomination of Donald Trump and Democrats were thrilled that their rivals were about to put a so called. Unelectable candidate on the ballot. Not only would they win the White House but probably Congress and we know how that all turned out now. Most business and technology executives at the time also didn't take trump seriously but did warn economic calamity if they were wrong kind of like how many of those same people are now warning about the economic ramifications of President Sanders although few of them seem to be taking steps to protect against it including in the healthcare sector. The bottom line here is that the only certainty we have now is uncertainty and that could presents its own set of challenges come November. No matter who we're voting between fifteen seconds will go deeper with axios. Politics editor Margaret Talev. The first this in the New York Times bestselling book what it takes lessons in the pursuit of excellence. Blackstone Steven Schwartzman share some of his lessons from creating and building one of the world's leading investment firms recommended by Jack Welsh Janet Yellen Radio and more get the book on Amazon or add. Read what it takes dot com. We're joined now by axios. Politics editor Margaret Talev. Margaret Bernie is now the front runner. It seems that Democrats have been taken by surprise by this. Why were they taken? By surprise? He was the number two person for years ago. He's got this fervent support. How did they get surprised by this? Well what Democrats are still Democrats `institutionalised and also Bernie Sanders is seventy eight ran. Wants and didn't succeed just had a heart attack so there are a lot of kind of conventional wisdom reasons why this could be difficult. He's a democratic socialist. You can say that's different than being a socialist but it's still has the word socialist in it and for a month. Democrats have been talking about a different kind of strategy a strategy about how could you kind of restore the status quo? And the electorate at least the primary and caucus electric does not seem to be a move for restoring the status quo. They seem to be in a mood to fight. Fire with fire to summon the emotion the energy and to a large extent the anger that helped sweep president trump into office but to summit from the other side of the ideological spectrum. And that's where we are. Now do we ever get to the point? Where those who espouse. Conventional Wisdom realized that it hasn't been true for a very long time comes presidential politics obviously not just trump's election but Barack Obama's election. I think that's a very valid point. I covered President Obama and before he was president. Obama covered the Obama Campaign. The first one in two thousand seven seven two thousand eight and at the time. Everyone thought he's halfway through retirement senator. He's African American no experience. How could he possibly beat the Clinton machine but two things were true number one? He was a very good candidate and number two. Hillary Clinton was not the greatest candidate and there was a number three. Which was that? People were reacting to the Bush administration and President Obama's message of opposing the Iraq war and and Kinda re-instituting this idea of multi-lateralism appeal to a lot of people. They wanted something hopeful and optimistic and and sort of the opposite of Bush in terms of foreign policy. If that rule holds true here there could be a pendulum swing. It is not necessarily driven by that hope and change message. It's more of like a raging change message like mad as hell not gonNA take it anymore but the Democrats version of that. I think one of the other calculus questions for strategy is that in President. Trump's case he came from the outside kind of took over there publican party and change what it means to be a Republican in America today. And so if you're a democratic institutionalists you're looking at what Bernie Sanders is proposing. And you're saying Democrats. Yeah and then. That's why partly why. There's so much resistance to that if it works like if succeeds and if he were to become elected and be president that it could fundamentally change what the Democratic Party stands for outside of Nevada where he did actually get a majority Iowa New Hampshire he. He got relatively small numbers compared to winners in the past. If there is a democratic establishment is there no democratic establishment? That can put some serious serious pressure on a couple of these candidates for example somebody to get out. It's not working. It's not happening. I don't know who they are. Is there an effort? There isn't the same like Centralized Council of elders that you might have thought of. It's funny because we have these really strong. They're still strong these two party systems but it's unclear who's in charge of either one of the parties. You know like is Mitch. Mcconnell in charge of the Republican Party or is Donald Trump Republican party is the DNC in charge of the Democratic Party. Obviously not so. Who's in charge of the Democratic Party? It's up for grabs. And that's why nobody wants to step back in case it goes to a contested convention but it's also why there's so much of a window for Bernie Sanders to take this momentum and run with it because there are a lot of voters who either have stayed home in the past or coming of age now and are more liberally oriented who just don't think the system works whether Democrats in charge or whether Republicans and chart. Let's talk about the second piece of this. Which is war Bernie Sanders to actually win and the actual legislative process? There's a let's go back. Conventional Wisdom Conventional Wisdom Democratic Party is Bernie is explicitly run against democratic establishment. Those Democratic senators. Those are the people he would need to help pass legislation where he elected. He is not considered the most popular person on Capitol Hill just from personality perspective in the way he works with other members including of his own party is there real reason to believe that were sanders elected president that he would struggle to get some of his major policy initiatives through either in whole or in part or do you look at the trump example and say Republicans were slamming Donald Trump. Until the minute he was elected president and suddenly everything he wanted he got and that's certainly what Bernie Sanders and his team would argue and Bernie Sanders became the nominee. And if he were to win and then if conventional wisdom defied and it didn't drag on all the lower ticket races so that the house and the Senate were wipe out that sort of thing so if all these pieces fell into place and if you had democratic control in one chamber and near Tie in the other chamber and you had a sanders presidency there are still very real questions about what kind of fundamental changes you can make to healthcare law what could happen with taxes. The argument of look what trump did it is worth considering but healthcare is one of these issues that the polling is a little confusing on because Bernie has been able to build on momentum and support even though he is talking about Medicare for all but a lot of voters say that they don't really understand what that means like the way he's proposing it would mean ending the private insurance system as it exists now which is what most Americans have a lot of people want to be able to keep their insurance so a wad of democratic incumbents are concerned that people don't want that blown up if people sweep Bernie Sanders into office. They might have to rethink the way they feel about it. There are a lot of unknowns but one thing we do know as we've seen with president trump is you don't have the unilateral power to do a lot of things you need. Congress's approval on the other hand. The sub caveat to that is if you're willing to push everything to the Supreme Court and cast fate to the wind challenge your own parties Orthodoxy and assume that your base will support you. You can push the envelope farther than most conventional politicians thank you can. Which is the bigger risk from your perspective the Democrats when it comes to electability Bernie becoming the nominee through the primary process becoming the obvious nominee or a brokered convention in which there's some other Democrat that's the nominee and Bertie supporters? Lose THEIR MIND. Stay home they're both very real risks and the one thing that. I think I can say with certainty that if you're president trump kicking back and watching all of this you like the circular firing squad for the Democrats compared with your other option which is early consolidation around one nominee who all the Democrats feel great about who poses an obvious threat to you which is interesting because that's exactly what the Clinton campaign thought for years. I think the answer to your question is we just don't know yet. A broker convention could be incredibly bad and tear up the Party. Bernie Sanders could move much closer to security this nomination by Super Tuesday. And if he does then the pattern of what happens between now and that convention may change also. I think we just don't know things have turned and begun to solidify accelerate in a way that you could not really have seen two weeks ago and everyone now on both sides of the scrambling to try to understand what that means. So you've been in past. I've been to a bunch of Convention. In the past. They are generally very boring affairs. A brokered convention would be much more interesting to get off the plane and not knows making the final speech. Margaret Talev politics editor for axios. Thank you so much for joining us. Thanks for having me my final two right after this in the New York Times. Bestselling book what it takes lessons in the pursuit of excellence. Black Stones Steven Schwartzman share some of his lessons from creating and building one of the world's leading investment firms recommended by Jack Welsh Janet Yellen Radio and more get the book on Amazon or at read what it takes Com now for my final two and I up reports that into it. The maker of Turbo tax software is nearing a seven billion dollar deal to acquire Credit Karma a provider of credit score information and monitoring services. Why it matters outside of the huge price tag is that the combined company would hold a staggering amount of personal financial information made even more valuable because the combined company could now do things like match tax data with credit data for consumers. This likely means better recommendations. Like if you're trying to search for a loan but it probably also means much larger privacy concerns don't be surprised if regulators probe into that last piece when it comes time for deal approval and finally a bit of Dystopia to kick off your week Pew research that with a new poll of nearly one thousand tech innovators researchers activists and business leaders and nearly half of them believe. The tech advances are likely to harm global democracy over the next ten years everything from misinformation on social networks too deep fakes specifically forty nine percent of respondents said the use of tech will mostly weaken poor aspects of democracy and democratic representation. Another thirty three percent said they will strengthen democracy while eighteen percent shrug their shoulders. So I guess all this is the brave new world. And we're done big. Thanks for listening to my producers. Tim Chauffeur's shaven have a great national Tortilla chip day and move back on Wednesday with another pro guest.

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The GE of Today

TechStuff

50:26 min | 2 years ago

The GE of Today

"It's the heart of fantasy football draft season and the fantasy football weekly podcast is here to make sure you dominate your draft so thoroughly you leave your opponents reconsidering considering several their life choices particularly playing fantasy football against you fantasy football weekly as the world's longest running fantasy sports show and it's now the podcast that crushes does your league with deep data dives and unique insights every weekend you can find fantasy football weekly on apple podcasts are on the iheartradio. APP or wherever you listen to PODCASTS welcome to text up a production of I heart radios. How stuff works. Hey there and welcome to tech stuff. I'm your host Jonathan Strickland. I'm an executive producer with how stuff works in Iheartradio and love all things tech and we have come to the end of our journey covering the history of General Electric Up to today and just a heads up. This episode is going to focus a lot on the business side of General Electric rather than the tech side of General Electric. I could've ended the series with the last episode as far as the technological innovations go now that's not to say. Ge hasn't continued to innovate in the Post Jack Welsh era aw but rather that the innovations the company is most known for span the previous one hundred years of its existence the last twenty years the most recent twenty years have been more marked with controversy and business practices and mark issues and I think it's important to understand Dan what's happened since two thousand one because GE has been such an incredibly important part of the modern technological landscape. I mean that's one one of the main companies that helped spread the electrical infrastructure in the United States you know without. Ge It would have taken much longer for that to who have happened in the world would be very different today if ge had not existed but in the last episode. I told you guys about Jack Welsh the GE the CEO who pushed the company to incredible profitability mainly by selling off businesses where General Electric wasn't in first or second place in the industry he sold off more than seventy of GE's businesses just in this first two years of being CEO he also laid off more than one hundred thousand employees. Glow Yee's which earned him the nickname neutron jack because like a neutron bomb he eliminated people without damaging the assets and he also led efforts to acquire choir financial institutions like banks and insurance companies to launch this financial insurance business and that would end up giving Ge an enormous revenue boost it would become incredibly important for the company in the nineteen eighties and beyond for different reasons now one exception to welches amazing victories was an acquisition of securities firm called Kidder peabody and company any which was actually an even older company than General Electric if you looked at the origin for Kidder peabody and company that firm traced its history all the way back to eighteen sixty five more than a decade before even the earliest companies that formed General Electric Welsh should lead the acquisition effort in Nineteen eighty-six but then there were a series of scandals centered around insider trading that brought a lot of suspicion and scrutiny scrutiny on kidder peabody's business and therefore GE capital the financial division of General Electric and the year after the acquisition the global global stock markets crashed on October nineteenth nineteen eighty-seven what was called black Monday the combination of events convinced Welsh the he and made an error in judgment acquiring kidder peabody and it took several more years and more scandals centering on kidder peabody's a record keeping and allegations allegations of reporting false prophets but gee would eventually sell kidder peabody off at a huge loss now that embarrassment aside g. e. for the the most part did very well in the eighties and nineties the Stock Price for GE rose four thousand percent some sources state that when you take all the factors into consideration was more like five thousand two hundred percent under welches command. He put off his retirement in order to secure an acquisition of honeywell international now. If you listen to my last episode you know that didn't go well. The European Commission denied the merger for anti competitive reasons and the man and who hated to lose Jack Welsh had to go out on a down note but compared to Ge you could say Jack. Welsh got off easy now. This episode will cover what happened to General Electric since two thousand one including the events that would create massive problems for the huge company and there is ongoing disagreement as to weather most of the blame should fall on welches successor or if Welsh himself should shoulder some of that responsibility or some other party so what the heck actually happened. I let me talk a little bit about. Ge's stock because that's going to come back around later in this episode a few times so so for years. G. Paid out a dividend on its stock. Not all companies do this and a dividend is a payment that a company makes to distribute some of its revenue to its shareholders so a company makes money and then distribute some of that money amongst the people who hold shares in the company. It's usually not very much per share in fact it's typically less than a dollar. Jeez case it was around thirty one cents for a long time in the US. There are no rules about how frequently a company actually pays out dividends. Most companies will do it quarterly so you would get one quarter of your dividend four times a year so so if it was a dividend of forty cents that means every three months you would get a check for ten cents for every share you own so it's not very much but if you own a lot of shares it starts starts to add up and besides distributing revenue it's also meant to incentivize shareholders to reinvest and buy more shares of stock in that company so the idea is oh you gotta dividend payout. It's enough for you to buy another share in the company so you spend that dividend buying another share. That's the logic there well well. When Welsh I took over Jeez stock wasn't doing so great. It wasn't super high. A lot of investors thought of the stocks walks as essentially a dividend payout and not much else so you wouldn't buy. Ge Stocks with the idea of selling them at a higher price later on the road. You know you weren't thinking talking. I'm going to buy now because in five or ten years. The stock is going to be worth two or three times as much you bought. GE's stock because it paid out a dividend evident so it would take a long time but you would eventually make more money than you invested if that dividend were to hold steady now when Welsh took over over the stock price actually dipped a little bit after he had been running GE for a year or two but another year later the entire stock market took a turn AH started to climb in value this would be the beginning of eighteen years of a climbing market a bull market in other words. Even with events like black Monday day in nineteen eighty-seven taken into account so you had moments where the market was not bullish where it was crashing but it would recover and then go back on its bullish route trajectory if you will now collectively the S. and P. Five hundred index it would climb by two thousand four hundred percent and this this was the same time that we started seeing packages like 401k plans replace traditional retirement plans now that meant that stock market performance would become far more important to way more people like in the old days. It was just people who traded in stocks largely. It was a lot of businesses that did that. Trading your average person didn't play the stock market that much but now stuff like our retirement was tied directly into stock market performance so suddenly everybody was really really focusing on the stock market and I meant that it became far more important for stocks to do well see before the nineteen eighteen eighty s stock market performance. was you know it was an indicator of a company's overall health but most people didn't consider it the metric against which all companies these should stand you would worry more about the company's profitability. How much revenue is it bringing in. How much does it cost to do business. And how much profit is the company making. The share. Price wasn't as big a deal that changed around the same time that Welsh took over at GE and welches philosophy happened to match this general shift shift in how businesses operated in the United States now I don't say this to diminish welches contributions or Jeez performance because the company's own stock doc outperformed the general market significantly but I do also want to take the overall market performance into consideration because while I don't WanNa take any credit away away. I also don't want to give too much credit to Welsh and his impact beyond what it actually was anyway as the market improved moved and as GE's performance in particular made its stock price rocket upwards. Ge Stocks were seen as more than just a dividend payout the the company continued to pay dividends though which again is going to be important later those dividends were largely funded by the incredible performance of GE capital. That's the financial financial services division of General Electric in the last year of welches tenure as CEO GE's stock price did take several roll hits but then so to just about everybody else in March two thousand the stock market's performance shifted it was no longer bullish it was going into a bear air market so instead of growing it was receding the Dot Com bubble had crashed and that caused a bit of stock market crisis companies that were in the DOT com industry. Obviously they suffered the most many of them just were blinking out of existence after it became clear that those companies had no way to deliver upon the promises this is that they were making or to be able to justify the crazy speculation that drove their stock prices into the stratosphere before the companies that even figured out how how to generate a sent in revenue but even companies like General Electric which were traditional established giant conglomerate companies were affected by this change in the market between March two thousand and when Welsh would hand over the CEO role to his successor Jeff Immelt in early September number two thousand one the stock price for GE had fallen by twenty four percent now. I point that out because often the simplified story about what happened to Ge he was that Jack Welsh step down and immelt fumbled the ball that emily was a terrible CEO and he could not follow welches lead but in reality -ality I think the story is far more nuanced and we have to remember that the market itself was changing during this transition it wasn't a case of immelt being handed a profitable company on a silver platter and nothing was going wrong and he just messed it up from there he did make a ton of decisions that would not turn out to be great for GE so I don't WanNa diminish his responsibility either. I just think it's important for us to take all these factors into consideration. Okay so Welsh stepped down on September sixth two thousand one. Emily took over on September seven and four days later. The United States was rocked by a series of terrorist attacks that shook the country to its core. Those effects were widespread. The tragedy touched thousands of people directly tens of thousands. It's millions of people indirectly it transformed the New York City scape permanently and it caused disruption in the markets as well. Wall Street made the decision the to not open the New York Stock Exchange the morning of September eleventh two thousand one fearing that the terrorist attacks would prompt panic selling amongst shareholders shareholders making a truly horrible situation even more dire both the New York Stock Exchange and the Nasdaq would remain closed until Oh September seventeenth two thousand one when trading resumed the market fell by nearly seven hundred points that was a decline of almost MO- actually actually more than seven percent and that was just the first day of trading losses actually continued throughout that week. I hate even talking about this but it is important in order for us to understand. GE's story at this stage in the company's history business philosophies had changed significantly in the United States in the one thousand nine hundred thousand nine hundred ninety S. We created a new environment where share value was the most important metric metric for a business. The company's stock price if the stock price was going up that was good. That was pretty much. The end goal beal accompany company wasn't doing well unless its stock price was growing year-over-year or at least the overall value of the company when you take in its stock because of course I companies can do things like stock splits so that the price of an individual share of stock goes down but because you've doubled the number of stocks or number of shares I I should say on the market the value the company itself remained stable and can continue to grow this drove a lot of business decisions that put shareholders above of just about everything else in the company including customers now in my opinion it's one of the biggest economic mistakes made in recent decades as it has created a world in which many company executives focus very much on the short term to midterm gains as opposed to long-term long term strategies so often. I think companies are making choices that hurt the company's chances to survive in the long-term all in an effort to to drive that stock market price further up anyway. This disaster impacted. GE's stock price along with countless other companies and you can't lay that blame on immelt. It's not his fault that the series of awful attacks happened four days after he took control the company in the wake of nine eleven all airline operations in the United States stopped for several days that had a direct impact on GE's business which which included building stuff like jet engines for the airlines and also leasing out parts for various companies all of that was put on hold on top of that GE's as insurance business was suddenly inundated with claims which the company had to make good on for one thing. Gee was responsible for the insurance policy for the World Trade Center Center which as I'm sure you all know lost the two towers the made the center iconic back in two thousand one as a result of those attacks prior to September eleventh it wasn't unusual for GE to lean a bit heavily on GE capital to kind of smooth things over the branch was so profitable that division division of GE was so profitable they can help conceal if another division weren't quite doing so well a lot of GE's accounting practices we have over the years been called Opaque meaning that you might get the end result of how well the overall company is doing but you might not know how it got dare which divisions are doing well versus which ones are not the overall performance of the company was what mattered right so who cares what's happening in the individual divisions well emily would get to work selling off parts of GE's insurance business though the company would still maintain some of that business up to present day. I'll explain more about that in a little bit and he also began to look at possible acquisitions so would things turn out well. We'll find out but spoiler alert no they don't but before I get into that. Let's take a quick break. Support protect stuff comes from our friends at rocket mortgage by quicken. Loans home is so much more than a house. It's your own little slice of Heaven. That's why when you find the perfect place place for you and your family. Getting a mortgage shouldn't get in the way imagine how it feels to have an award winning team by your side through every step of the mortgage process that's awesome and exactly what you get with rocket mortgage by quicken loans their team. A mortgage experts is obsessed with finding a better way which which means that their number one goal is to make the home buying process smoother for you in fact rocket mortgage is there with award winning client service and support port every step of the way quicken loans has helped millions of Americans achieve their dream of home ownership and when you're ready to purchase the home of your dreams they can help you to visit rocket mortgage dot com slash tech stuff and take the first step toward the home of your dreams equal housing lender licensed in all fifty states n m L. S. CONSUMER ACCESS DOT ORG number thirty three rocket mortgage by quicken loans push-button get mortgage one one thing I want to mention before I forget it is that during emotes run as CEO of GE. There was a particularly wasteful practice going on that would later you get a lot of media attention when it was made public emerald traveled a lot he would meet with various. GE executives and facilities all around the world as well well as with other company and industry leaders and politicians particularly he would do this when he was on the lookout for possible acquisitions and he made a lot of those as as he was CEO of Ge hop over to the other side of the world he would take one of the GE owned business jets they had six of them but here's the curious thing every time he would travel there would be a second empty jet that would follow along behind and stay at the same airport airport and wait there and then when Emma would fly back so did the MD jet now the justification for that practice which again eventually actually became public in which a jet carrying only accrue no passengers would burn through fuel generate pollution. The justification was that emily was is a very important person on very important business and yes. I capitalized very important in my notes in this section as such. He couldn't be delayed by mechanical failures. His business was far too important so the empty jet was essentially a backup transport in cases primary should experience mechanical delay it was his just in case measure a very expensive wasteful measure the company he would actually stopped that practice in two thousand fourteen which was a few years before immelt would be replaced as CEO spoiler alert. We'll get there all right so back to the post post two thousand one. Ge in two thousand and two G. E. would acquire a business from a formerly huge company that company was Enron which went bankrupt in two thousand one after its own massive scandal which I'm not going to get into here. It's outside the purview of this episode but one of the many parts of Enron to go up on on the auction block after the bankruptcy was a wind power business. Emily was in his own words. Not Enthusiastic about win in Bauer he felt wind power wasn't profitable and it was too dependent upon subsidies and those subsidies could disappear at any time according to which way any government budget legit might be headed so there was no way to control that if the subsidies went away you'd be saddled with a really expensive and non-profitable business but what Ammo gave the authority to executives who really believed in that acquisition to go forward with it and they went and purchased the division it would end up becoming profitable and and perhaps should have served as a lesson for future Molt and I'll get back into what I mean about that in just a little bit in two thousand and three G. E. announced its intention to purchase a majority stake in universal pictures that was a company that was under the control of another company called Vivendi a French company and this deal. Ge would acquire eighty percent of Universal Vivendi was going through a financial crisis at the time so GE merged universal with NBC creating NBC Universal and the deal included several cable television channels like sci fi network USA network as as well as the universal film studio the Universal Theme Parks it did not include universal music that would remain completely under control but lots of the other universal properties were part of this deal. Vivendi would have twenty percent control of this and then you would have ge with eighty percent control and you got NBC universal g would not hold onto this property forever g was acquiring other companies as well at this time adding them to the various divisions visions of General Electric Ge healthcare was growing with companies like instrumentarium and Amersham P L C those were being added did as part of GE healthcare GE capital was also growing with similar acquisitions including some subprime mortgage loan companies and we'll get into that in a bit and G. he would also build out its industrial consumer and energy businesses. Egmont made several acquisitions of companies in the oil industry also in banking and that the old course of fossil fuels in general because he really believed that that was going to be the mainstay for energy production or electricity production. I guess I should say for the foreseeable. Future drought this time. Ge Capital would remain the most profitable division of General Electric and so the company would lean more heavily upon GE capital in order to do things like pay out that dividend to shareholders that setup. Ge for disaster just just a couple of years after GE purchased subprime mortgage businesses the world plunged into a global economic crisis which we often refer to as the two thousand is an eight financial crisis but really the crisis. I started becoming apparent in two thousand seven with these subprime mortgage market so what the heck is a subprime mortgage while the short answer is it's an incredibly risky predatory and irresponsible market practice that depends upon people who are some of the most vulnerable folks out there. Maybe that's just me putting my own bias on things but it's hard for me to see the whole concept is anything other than dumb and harmful harmful but here's how it breaks down all right so you know about credit scores right. They're supposed to represent how much of a risk or a lack of risk a person is when it comes to paying off debt like loans so if you have a high credit score it means you're history shows that you're diligent about paying off debt and that you represent a low risk for future loans. It does not mean that you've never had debt you. WanNa have some debt and then you want to be able to pay it off because that's what gets you that high credit score but if you have a low credit score it means that in the eyes of a lender represent a risk. Maybe you have a spotty employment history. Maybe you have a lot of outstanding. Debt may be missed. Some payments on some loans owns the purpose of these credit scores to give lenders enough information to make responsible loan agreements subprime lending involves giving loans to high hi risk individuals and typically you pair this with really high interest rates and other restrictions in order to mitigate the risk you incur when you give vallone out to one of these people have very low credit score and so people who are looking to buy homes or to take out other loans were securing the money through financial institutions with these subprime mortgages and subprime loans but with incredibly punishing restrictions on those loans and surprise surprise surprise a lot of folks found it impossible to pay off that debt and ultimately many of the companies that were making those loans found themselves in a hole that they had dug themselves mm selves and it was too deep to climb out everyone was put in an awful situation and had a really big ripple effect are that ripple led to an investment bank called lemon brothers collapsing in September of two thousand eight other major financial institutions were in danger of following suit. The whole thing was leading leading to a global economic collapse with the financial industry on the brink of total disaster. That's when various parties swooped in to rescue the situation Asian bailing out banks that had overextended themselves. This intern ticked off a lot of folks who are directly affected by this problem. These were people who had been victims did from their homes because they weren't able to make their mortgage payments or people who are otherwise hurt by the subprime mortgage crisis either directly or indirectly and it didn't help the many any of these people solve the bailouts as being rewards for the same financial institutions that caused all the misery in the first place well gee capital was is one of those institutions and it was hit hard by the two thousand eight crisis worse because General Electric was so dependent upon GE capital for revenue renew it put all of General Electric at risk to help whether the storm the company announced it would attempt to raise twelve billion dollars through a common stock offering being Warren Buffett investor extraordinaire also helped out by investing billions of dollars in GE in retrospect many analysts have said that gee was playing playing an increasingly dangerous game since Welsh had transformed GE capital from a small division that helps consumers get financing to purchase big appliances like refrigerators Peter's into a global financial institution. Ge's more traditional divisions like it's lighting Business Industrial Equipment Business Medical Michael Equipment business its aviation businesses all of these secured for the company the respect of Wall Street because they were dependable parts of Ge they a could make a dependable revenue and they were traditional had a long history with the company that gave the company a lot of room to swing for the fences with the G. capital and thus engage in more risky behaviors in an effort to win big payoffs dry that stock market price up and again pay out those dividends and and that risk was somewhat necessary because of that changing climate of business so you had to grow year over year. Geez traditional businesses usually had steady performance. They did grow but they grew slowly so that wasn't the kind of performance that would really when you the the front cover of various business magazines. You wanted to really go for it so GE capital was that method that was held g. e. was going to be the the leader then it became an anchor weighing the company down in the wake of this financial crisis. Emma would start trying to sell off parts of GE capital but it wasn't easy before buffet rushed into help. Ge famously couldn't secure overnight loans to keep the business afloat. Most investors felt it was far too risky to pour money into General Electric so the House that Jack Built was in danger of crashing to its foundations even with the influx of investment cash not not to mention a an incredible one hundred thirty nine billion dollars a federal government bailout money g was still struggling and one thing thing barreling down at the company was that dividend payout the dividend made GE's stock one of the most popular stocks on the market tons of people people owned GE's stock because it paid out dividends but paying the dividend was going to put a huge burden on the company just wasn't going to have the cash to do it so so in two thousand nine. Emerald decided to cut the dividend from thirty one cents a share down to ten cents a share it would mark only the second time the company had had reduced its dividend payout the first time had been during the Great Depression and spoiler alert. It would not be the last time they would have to cut the dividend and also in two thousand nine. The company announced its intention to sell off. NBC Universal to Cable Provider Comcast to do that it would I I have to acquire the other twenty percent of NBC universal from Vivendi. They still had that twenty percent share. That process took some time so it it wasn't until two thousand eleven that G. E. would sell off a majority stake in NBC universal to comcast at that time Ge would still retain a forty nine percent cents share in the company although it did have the intention to sell the rest of those shares off a few years later this would become a common plot element and a source of jokes in the series thirty rock just as GE's ownership of NBC universal had been a source for humor previously in that series two years later in twenty thirteen comcast would arrange to purchase the entirety of NBC Universal from Ge and Ge would get out of the entertainment and media business and it would use some of that money to cover purpose some of the debt that GE had accrued following the two thousand eight financial crisis the NBC universal deal was just one of several that GE pursued in the first decade decade of the two thousands the comey looked to sell off some of its businesses and divisions in an effort to refocus on core strategies immelt kept working on ways to extract act GE from GE capital business and he didn't have a whole lot of success with any had his eyes set on another company to try and turn GE's prospects around around the company in question was a French company that was making coal powered turbines in other words. It was a company that built stuff for the Energy Electric Industry Industry Electric Utilities right specifically for fossil fuel based power companies. The name of this company was `Alstom A. L. S. T. O. M. and as it would turn out the timing could not have been worse though it is arguable over whether or not that was predictable at that time emily was hoping that also would become a key component. Jeez Power Division he thought that GE take this French company which had been struggling financially and use GE's processes fees and practices to turn `Alstom around then he would use `Alstom to meet the electricity demands of clients all over the world and all with fossil fuel based turbines bovine so what went wrong. I'll tell you after we take this quick break. Let let me tell you about Pete who loved hockey and always wanted to play in the NHL Pete played since he was three and begged his mom to let him stay on the ice by some nights what's he even slept in his hockey skates. Pete practiced and practiced until one day when he was forty seven p realized he just wasn't that good so he threw his skates in the trash but then you heard how. GYCO proud partner of the NHL good save money on car insurance so he switched and saved a bunch so it all worked out money makes us all awkward particularly me but it's something we need to talk about in the New Podcast Hush Money Entrepreneur Editor in chief Jason and Pfeiffer and New York Times bestselling author Nicole Lapin debate the trickiest questions about how money impacts nearly every aspect of our lives then in each episode a celebrity judge joins them to decide WHO's right and they get to the bottom of some of the deepest most hard hitting hitting topics in money that you can think about you know stuff like who should pay for the first date or how do you ask for a raise. Do you let your friends borrow money. This is not just some boring financed chat show. It's actually really funny. An informative it's ultimately useful you have to of today's sharpest entrepreneurial voices debating touchiest financial subjects and and it goes straight to the stuff that we just don't talk about in polite society things that we just assume everyone else knows the right answer and we're just is going to try and fake our way through it. No they face that head on new episodes of Hush money are released on Wednesdays. Listen and subscribe on Apple podcasts the iheartradio heart radio APP or wherever you get your podcasts not everyone g was crazy about acquiring hiring. Also several executives felt that the asking price was far too high but emma was optimistic the G. could take `Alstom and turn it into a profitable business as it turns out he wouldn't get the chance to stick around long enough to see how far `Alstom would fall but I'm not quite there yet g needed to do something the company's oil and gas services which revolved around actually extracting oil you know making the equipment that would be used for that sort of stuff those were on the decline as energy prices says were collapsing but the power division. G. Power the part of GE that actually produced equipment that was used to generate electricity that was still a reliable revenue news source in fact at that point it was the largest source of revenue for GE and it had a high profit margin to boot g made a lot of money from that particular division so if we could do the same thing for `Alstom and turn things around then an MS mine the company would have a rock solid foundation from which to work but a few big factors would hamper the success of them one was that there just wasn't as big a demand for turbines as emily had anticipated. They got fewer orders than what they were hoping for in places like the United States power companies were improving efficiencies and so they were able to do more with less there wasn't as big a demand to add additional no infrastructure to meet consumer needs then there was the fact that Alstom's employees were very highly compensated which was good for them but rough for GE deep and regulations in the EU mid the emily couldn't just pull a Jack Welsh and start laying off employees in an effort to cut costs e you had protections protections in place to prevent that sort of thing so you couldn't just make the books look better by laying off a bunch of people and you also blocked one part of the business from GE acquiring it that was Al-Shams service business their maintenance business that would have supplied revenue as the company would provide maintenance services for its clients that that was off limits and the other major factor was that the cost of building out renewable energy systems fell drastically not long after GE completed the ten a billion dollar acquisition of Allston two thousand fifteen so a little like the wrong bet bright buying a very expensive fossil fuel based based company just as renewable energy prices were falling to the point where they were they could compete against fossil fuels now around the same time that the `Alstom deal was starting to take shape GE would spin off its credit card business which was part of GE capital and it would become mm synchrony financial and I'm guessing it felt a lot of folks at GE with a bit of dismay to see that once it was free of General Electric this former division Asian actually out performed all expectations did much better on its own than it did as part of General Electric on top of that the oil price crash pushed GE to merge its its own oil and gas division with a company called Baker Hughes and then G. E. got a majority ownership in the Baker Hughes company became Baker Hughes Agenda Company at least for the time. Oh in two thousand fifteen. Ge formed a unit called. Ge Digital Ge had been in various digital products for Awhile Wilde but two thousand fifteen mark the move for the company to create an independent business unit most of the units focus was on a software product called predicts sort of a a play on prediction and it was a business to business product it was meant to help big companies like airlines identify strategies and manage assets but over time that unit would experience slow revenues and technical issues and in two thousand eighteen there was real serious talk of GE potentially selling off the division vision entirely that has yet to happen. Ge Digital still as GE but GE did do few rounds of layoffs so the things have not gone smoothly for that part of the company back to GE's leadership was an October two thousand seventeen GE announced the Jeff Immelt would be stepping down as CEO CEO and he had served in that role for about sixteen years the company's stock price was around a third of what it had been when he took control emerald had spun off numerous numerous businesses over the years including GE's plastics division if you remember that's the Division that Jack Welsh had actually come to he also spun off the appliances business he's spun off the insurance business where a lot of it anyway and more and by that time much of the upper leadership at Ge we got caught in a shakeup there were members of the board who left there were other executive members who left and investors employees and retirees were all growing more and more unhappy unhappy the company had lost an estimated one hundred billion dollars worth of shareholder wealth over the previous decade and a half critics stated the habit of chasing after fads investing in businesses at the peak of their visibility and then later selling them off for less than what GE had paid for them in the first place. Ace and people said the G. E. Method was to buy high sell low which in general is the opposite of what you WanNa. Do I think oh no not a business guy. Not on every deal made went sour by the way the Enron deal which g took over that win power business ended up being very profitable though again immel initially opposed was that deal and when g sold off its plastics division it was for a higher price than analysts expected but generally speaking the deals didn't break in. GE's favor under watch emerald successor was John Flannery who had up to that point headed up GE's healthcare business and had worked for GE for thirty years flannery goal was to build a strong core for GE around its aviation business. It's power business and its healthcare business and there was talk of the possibility that GE itself might break apart into several different companies the reaction to that idea kind of fell across the spectrum some people saw it as an assess ity if the various parts of GE were to stabilize others saw it as the end of a legacy and they had a bit of the point one of the discussions was about possibly selling off GE's lightbulb business that was the business that started it all really all the way back in eighteen in seventy eight and the Edison Electric Light Company but innovation can sometimes be a double edged sword the move toward led lights which can last for thousands thousands of hours meant that there just wasn't as big a demand for light bulbs anymore because if you don't have to worry about the light bulb burning out on a regular basis. There's not much call to a buy new ones you just by the led's you might sell your house before you ever have to change that lightbulb so light bulbs sales. Were starting to drop. There just wasn't enough enough call for them. I bet it may g long for the days when informed that secret lightbulb cartel in which companies agreed to limit the useful life of a light bulb through engineering era and things were rougher shareholders too since G had cut its dividend payouts a few years earlier. The payouts had slowly increased again. They grown up to twenty twenty four cents per share. So that was an improvement. It was still below the thirty one sense that it had been at its peak but was better but in late twenty seventeen. Ge had to cut the dividend again that time down to twelve cents and then not too long after that there were forced to do another cut they they just realized that there just wasn't enough money to cover the dividend payout so the dividend got cut down to just one cent per share. It just didn't have the money to cover the payments otherwise in addition. JI was having to deal with an unexpected cost. The company had not issued any long term care the insurance policies since two thousand six and in fact it had spun off almost its entire insurance business with a company called. Gen worth however in order to make that deal happen. G was forced to agree to cover any losses from long term care insurance. It was just seen as too great a financial risk otherwise otherwise so. Ge signed that agreement now. Those long term care agreements are policies that are meant to cover the elderly and it turned out that ensures ensures not just at Ge but across the industry had underestimated how long policyholders would actually live and the medical costs including things like nursing home fees would tend to get higher as customers got older so as people lived longer they were creating a larger and larger drain on resources sources for these insurance companies like if you looked at it from a financial perspective the person who was paying for the policy was getting way more benefits out of it they were paying into it and that was an issue so this was a huge cost for GE and it's no wonder that the company was continuing to try and find ways to get completely out of the insurance business to meet the obligation flannery had to redirect fifteen billion dollars of GE's wealth in two thousand eighteen just to cover the obligations of that insurance policy stuff and the company was also hit with a seven and a half billion dollar after-tax charge so things were really rough also in two thousand eighteen GE would leave the Dow Jones industrial average. If you listen to my previous episodes you remember number that was one of the original companies listed on that average when it was first created and it was the only company of that original list that still existed in two thousand eighteen it had been part of the Dow Industrial Average for one hundred eleven years but the performance of the company along with the perception. Shen that industrial companies in general weren't really key indicators for overall market performance meant that those days were over so in its place a different company would join the Dow that was walgreens boots alliance drugstore chain company meanwhile a problem with Geez most recent heavy duty gas turbines binds caused other issues for General Electric Utility in Texas had shut down to different power plants for repairs due to failures with these new turbines that news would end up hurting G. power sales which weren't doing super great at that moment already flannery efforts were seen as insufficient by the board of directors directors and on October first two thousand eighteen the company announced that flannery had been removed from the position of Chairman and CEO and the board appointed an outsider Laurence Kulp to serve as the new chairman and CEO Flannery had been CEO for about fourteen months and then he was out the would give flannery flannery the unenviable distinction of having served the least amount of time as CEO of all Gao's at least so far cope would be the third CEO to lead the company since two thousand seventeen the company cup took over was in turmoil and there were pending pending investigations into GE's accounting practices which had for years as I said earlier been described as opaque polite way of saying the company wasn't making it easy to see where money was coming from or where it was going to Ge had already settled SEC charges in the past but there were others that it sought to find out more about the finances of the company and then of course there was the recent report from Markopoulo. The Guy who was one of the early whistle blowers on Bernie Bernie madoff before everyone was aware of the Ponzi scheme that made off was running. The MARKOPOULO report alleges that GE is essentially robbing Peter to pay Paul also shifting cash around frantically to fend off insolvency. It's kind of like a shell game to try to move money around fast enough so oh that the company doesn't collapse. Ge I should add disputes this report and says that the allegations are baseless and it cannot be ignored that Markopoulo himself himself actually stands to make a lot of money should. GE's stocks decline in value so you could argue there is a motive for markup lists to try and drag GE's name in the mud so they're valid arguments on either side about whether or not this report is something you should pay attention to or if it's something thing that has ulterior motivations behind it that being said the fact that the Markopoulo report came out doesn't change the fact that there were already already numerous investigations government investigations into GE's businesses that could end up hindering the company further so there seems to be smoke. There is just a question of is the fire what Markopoulo says saying or is it something else on top of all the problems. The company faces aces is another external force. That could really spell doom. Many financial analysts say that signs point to another global recession already already industries like manufacturing and freight are in a bit of a slide so a recession would greatly exacerbate General Electric's problems so are we we seeing the end of days for a company that helped launch the technological age. I don't know I don't feel great about it but it is a very large company. It's not like any of these things is definitively the death knell for General Electric and there's lots of that could happen we could see. Ge Get broken broken up into smaller companies that individually are able to succeed much better than they can collectively all of that remains to be seen but it was fascinating waiting to learn more about this company's incredible rich history and I know that this last section was much lighter on the tech side as I said at the beginning thing but at the same time I thought it was important for us to understand how a company that had been so instrumental and setting the tone for the technological analogical age could be facing extinction in two thousand nineteen at so. Here's hoping that things turn around for G. She e that the company is able to reconcile all these accounting practices that is able to deliver value to employees employees to customers to retirees and to shareholders not just to shareholders and that wraps up this episode if you have suggestions for future topics of tech stuff whether it's a company a technology concept in tech anything like that. Let me know. 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Edison Electric Light Company GE capital Ge Digital Ge United States Jack Welsh Ge emily Jeff Immelt CEO GE General Electric Ge CEO Ge Digital G. E. Apple gee Emma
GE and the House That Jack Built

TechStuff

50:05 min | 2 years ago

GE and the House That Jack Built

"Today's episode is brought to you by IBM. SMART is open open is smart. IBM's combining their industry expertise with open source leadership of Red Hat. Let's unlocked the world's potential. Let's put smart to work learn more at IBM dot. COM SLASH RED HAT welcome to textile production of iheartradio's. How stuff works either in welcome to text up? I'm your host Jonathan Strickland executive producer with how stuff works and I heart radio and I love all things tech and we are continuing our journey through the history of General Electric or GE accompany the has encountered some pretty significant challenges over the last decade or so now in our first two episodes I went went through the founding of GE and made my way all the way up through World War Two and I talked about how some of the top level executives of the company were called upon by the US the government to serve in wartime government positions to help the US meet the needs of supplying the military with the equipment necessary to fight the war. I also talked about how GE continued. They need to grow as a company building on new departments and divisions and diversifying the company's businesses and I ended the last episode talking about a court case that determined GE was being anticompetitive by leveraging patents in order to act as an effective monopoly when it came to manufacturing light bulbs now we're almost up to nineteen fifty and it's time to get out of this world. The one thing I want to mention before we get into the nineteen fifties is that in nineteen forty six a scientist at GE lean named Vincent Schaefer developed the process of cloud seeding and the ideas pretty elegant but has long been a subject of scientific dispute so here's the process it involves distributing tiny particles into clouds in an effort to make it rain and the thought is that these particles will act as nucleic really excites for raindrops to form when the raindrops get large enough they have enough weight to fall to Earth and so that is is the general thought behind cloud seeding it's been practiced ever since but there have been many questions over whether or not cloud seeding actually works sometimes it would rain. Sometimes it wouldn't and if it did rain. Is there any way to be sure that it was the cloud seeding that actually made the difference. I mean you had to have a cloud there. In the first place he couldn't just manufacturer cloud experiments in labs suggested that it should work but the natural world is very different from the controlled conditions of a lab environment ornament. It didn't help that. Many of our measuring instruments lacked the precision to detect very small raindrops so you couldn't really monitor to see if it was actually doing what it was supposed supposed to do. An experiment in two thousand eighteen suggests that cloud seeding does in fact work at least to some extent but there's another question that still open which is does does cloud seeding make economic sense does the amount of water produced by rainfall justify the cost of flying aircraft up and distributing the particles articles in the first place because may very well work but it might not work well enough to make sense from a financial perspective. I just find it fascinating that we've essentially really been doing this for seventy years and we still don't know if we should be doing it now. I can certainly see why cloud seeding companies feel. We should be doing it. I mean I mean that's their business but the jury is still technically out over whether or not it makes sense and they're still a little bit debate on whether or not got it really truly works or if it works in enough conditions for it to be reasonable now in nineteen forty seven g e made the first two door refrigerator. Raider Freezer Combo and I only mention it here because I think it's cool. That's a pun now up to the nineteen fifties. He's so in one thousand nine hundred eighty one g built. A new jet engine called the j seven nine and here's an interesting historical note when engineers tested the J. Seven nine which had variable status the efficiency ratings were so high that the engineers thought their instruments were malfunctioning tioning. There's there's no way we're getting this level of energy efficiency out of this thing but then that raises a question for a lot of people what is a status was that actually mean will the name gives you a hint statr stationary that kind of thing <hes> so in jet engines you have fan blades that rotate those are rotors and you you had fan blades that holden places are called status and the purpose of this combination is to both draw air into the engine and to compress fresh air before it enters into the combustion chamber the adjustable status meant that the engine could be finely tuned to produce higher compressor pressures. Shire's and to produce more usable energy as opposed to waste heat when you're actually burning fuel in nineteen fifty four G. Research Laboratory scientists anticipate named Tracy Hall announced that his team had discovered a way to create synthetic diamonds in the lab halls team used a process involving high high pressure high temperature or hp ht they were successful in producing synthetic diamonds on December sixteenth nineteen fifty four. You're now other teams were using different methods to create diamonds of the in other companies as well but it was halls efforts that would receive the credit for design the first first reliable reproducible methodology to create commercially viable synthetic diamonds so a lot of qualifiers there because there were people who are working on in different methodologies and they were also producing diamonds but it wasn't considered to be as reliable nor as viable for commercial use and these were not diamonds meant to. Adorn engagement rings or other jewelry for one. They were Brownish in color so they weren't terribly attractive. They also were very very very tiny the largest diamond they produced in that early batch measured point one five millimeters across so these were not large stones more importantly this purpose would be put to commercial uses <hes> in fact it wouldn't be until the nineteen seventies that scientists would actually be able to create diamonds of sufficient quality unclarity that they could be used in the gym industry and even then the process was so labor intensive and so expensive it was not economically feasible feasible to create synthetic diamonds for decorative purposes. The cost of the synthetic diamond would be so high though would actually be cheaper for free to go out and buy a ring with a natural diamond on it also the whole topic of diamonds is one that I find particularly cularly upsetting <hes> but that's a that's a topic for a totally different podcast. So how did they make synthetic diamonds while I'm sure for most of you know. Diamonds are a form of carbon. It's a it's a crystalline form of carbon. You GotTa crystalline structure where you have a carbon atom that surrounded by four other carbon atoms and they're all connected to each other through strong vaillant bonds and diamonds are incredibly hard. They are the hardest natural substance we we found so far. They also have a lot of different industrial uses. They can operate at high temperatures where they can hold firm at high temperatures. They don't really <unk> operate at all. They're just minerals but they hold together well at high temperature so you put it on something like a high speed cutting tool and the hardness combined signed with the fact that it's not going to break down at high temperatures means you can run that very high rpm since start cutting through stuff pretty well in nature diamonds form as carbon and is compressed at very high temperatures over a very long time and if it weren't for stuff like volcanoes we probably never would have found the things because they tend to form in the Earth's mantle which is not easy to get to they they the zone where they form about one hundred miles beneath the surface of of the earth. That's far deeper than we've ever drilled holes. Lab used a belt press and this press could exert more than ten GIG PASCAL ASK SCOWLS of pressure. A Pascal is a unit of measurement for pressure and it equates to a Newton per square meter standard atmospheric pressure is about one hundred one one point three to five kilo pass Cowles so a Giga Pascal is one billion Pascal Tenga passed gals would be ten billion pass gals. Dell's so that's a lot of pressure g would actually put it another way for those of us who don't use scientific notation for everything. They said the press could exert one point five million pounds per square inch of pressure so in other words. It's just a whole lot of pressure and plus. It would operate eight at a very high temperature. It would be heated to a temperature of more than three thousand six hundred fifty degrees Fahrenheit or two thousand ten degrees Celsius. This press pushed against a mixture of graphite which is another form of carbon and graphite would be dissolved in a catalyst metal than catalyst metals finals could include stuff like nickel or iron catalyst in a chemical reaction as something that facilitates and speeds up the chemical reaction so in this case and then that we didn't have wait millions of years for synthetic diamonds to form instead took about twenty minutes the largest of those diamonds like I said was point one five millimeters across so created darned tiny the following year. Ge introduced hermetically sealed relays. These are electronic components that could be used in lots of different applications nations that otherwise might be sensitive to their environments particularly in stuff like high altitude airplanes and aerospace applications and variations of these components would be used throughout the next few decades in those particular applications who's just one early example of how GE would become an important part of the space race which was just heating up in the nineteen fifties between the United States and the then Soviet Union. Meanwhile the company continued to expand and it's consumer product line it introduced a toaster decades earlier but in one thousand nine hundred eighty six it introduced the toaster oven specifically typically it was one called the t ninety three toast are oven and it's adorable. Nisha look up a picture of it that same year. Ge built a a commercial jet engine based off the J seventy nine design which was intended for military aircraft that wasn't meant to be for commercial aircraft so this new engine region which had the designation CJ eight. Oh five would mark General Electric's injury into the commercial jet engine business so now they were building jet engines engines not just for the US military but also companies like Boeing and other companies are creating aircraft nineteen fifty seven would be a really big year for GE e the company secured a contract with United States air force to provide the engine for an experimental supersonic aircraft the XP Seventy Valkyrie now. The EX in aircraft names is a big tip off that that's an experimental prototype. You'll often see X. As part of the designation at the beginning of various aircraft usually means experimental the engine called. Dj Ninety three was capable of producing enough thrust to propel the experimental aircraft two three times the speed of sound owned and it would travel an altitude of seventy thousand feet or about twenty one thousand meters now the time the thing was that the greatest threat to bombers were intercept aircraft so if you could fly high enough and fast enough you wouldn't have to worry about that. No one would ever be able to get a bead on you. They wouldn't be able to to to track you and fire on you at that speed in that altitude so the valkyrie would be safe against typical defenses however the Soviet Union was developing surface has to air missile technology and that started to bring into question whether or not the valkyrie would be equally as effective against that sort of defense system system and one of the ways to get around that would be to fly the Valkyrie at lower altitudes where it could fly beneath radar but if you did that you you also had to fly slower you couldn't fly at the same mach three speed at lower altitudes that meant that the bomber would be flying lower and slower lower than it was designed to do and it would be no more effective than other bombers that were already in use at that time and it was more expensive so with all of those this consideration stacked against the Valkyrie the ultimate decision was not to go into production and build those out as a production model so it it just remained an experimental prototype but is super cool to look at if you ever want to look at a picture of XP seventy valkyrie pretty neat looking something else that happened in nineteen fifty eighty seven was the general electric constructed a nuclear power plant and Alameda County California and it was the first nuclear reactor to be connected to a commercial commercial electricity grid in other words. General Electric was able to produce electricity though would go to average citizens over him Alameda County and and I've talked a little bit about how nuclear power plants work. I'll just give a very very high level rundown so new have a nuclear material that undergoes nuclear nuclear decay and as part of that process a releases subatomic particles typically neutrons and those neutrons collide with other atoms of that same nuclear material Israel. This is your fuel and when they collide with those other atoms it initiates a chain reaction those atoms then go undergo radioactive decay and they release neutrons and so on and so forth so if there's enough fissile material that is material that can split apart in the fuel this reaction can be sustained until the amount of fuel dips below critical levels in which case you start to have fewer and fewer reactions and you've spent nuclear fuel doesn't mean that all the nuclear radiation stuff has gone far from it but it's no longer producing the reactions at the level. You need to sustain that reaction indefinitely. This is a nuclear power plant now. The concentration -centration of nuclear material is really high where that reaction starts to pick up speed over and over and over again and this happens in the blink of an eye then you can set off a much more explosive chain-reaction in that case. You have a nuclear bomb rather than a power plant then that that concentration is key there. That's why you'll hear stories about how how much <hes> uranium you would need for a nuclear power plant versus one for refined refined uranium for a nuclear bomb. Now this reaction produces a lot of heat and it's the heat that's the key for these nuclear power plants that he usually usually through a paired system of pipes transfers to a boiler and the water in the boiler boils into steam and that steam then turns turbines lines which generate electricity so nuclear power plant is if you think about it really just a way to boil water really fast and really efficiently only coal power plants also boil water but obviously they do it through combustion rather than through a nuclear reaction so the interesting thing to me the as that the the part that generates the heat is different but the end result is very much the same in the sense that you're boiling water or to create steam turbines to generate electricity now. I'll not go down the nuclear power rabbit hole because there's much more talk about just with General Electric but if you want to learn more about nuclear power plants do a quick search over at tech stuff podcast dot com as where we have an archive of all of our past episodes you can also learn the difference between vision nuclear reactors which are what we use today and fusion nuclear reactors which we hope we can make feasible in in the near future. We have done fusion reactions already but the question is can you make that sustainable. Can you make it economically feasible. That's that's a question that we have not yet answered but if we are able to do it it could transform the world anyway the G. E. Facility which was called the Vallis Saito's nuclear centered it still exists. It was only an active power plant until nineteen sixty three at that point the federal government told ged shut it down <hes> so the boiler reactor was shut down in nineteen sixty three but gee maintains the facility mainly for the purposes of testing and analysis particularly testing radiated radiated materials to see how long they remain <hes> at dangerous levels of radiation for example so if you have instruments or the suits things like that that would exist. Radi- radiation in <hes> filled area you want to know how long does that stuff going to be dangerous. <hes> that's just part of what they do now. A major part of that facility <hes> one of the largest of the reactors on that site got shut down in nineteen seventy seven it was still being used for research purposes says but not to generate electricity. Why was it shut down. Well discovered that it had the unfortunate distinction of sitting nearly directly on top of a fault line line. There was a legitimate concern over what might happen should an earthquake hit while the reactor was an operation. There is still a small reactor on the side operates in the one hundred kilowatt range but that's the only one as far as I can tell <hes> otherwise all the other reactors have been completely decommissioned at shutdown. We've got a lot more to say about General Electric but before I get into that. Let's take a quick break. Today's Today's episode is brought to you by IBM. Technology is becoming more open data more accessible and the world more innovative. IBM is combining their industry expertise with the open source leadership of Red Hat to bring you more freedom more security or flexibility. Let's unlock the world's potential. Let's put smart to work learn more at IBM DOT dot com slash red hat the work out of GE's research lab was pretty incredible in the nineteen fifties as you have the nuclear scientists building that I licensed power plant to provide electricity to a grid you add synthetic diamonds and you had Robert H win TORP DWARF WHO created the substance called Borozan in the lab or zone is a man made substance. You don't find it in nature but it's almost as hard as diamond demand and it can be used in temperatures much higher that even diamonds can be used in diamonds will break down once you get over a certain temperature boras on can hold together longer so so it would also become a very useful component in industrial cutting tools for example now around the same time a different group of engineers were building something perhaps a little bit less. Salafi in the grand scheme of things but that would be the humble electric can opener g introduced. The first consumer electric can opener in nineteen fifty eight and pet ownership has never been the same sense in Nineteen fifty-nine g introduced the halogen lamp these work in <hes> way very similar to incandescent lamps. There's a tungsten filament inside a very small bulb and encasing the filament is a quartz envelope envelope inside the envelope is a gas from the halogen group of gases so this is different from what the gas would find in your typical incandescent bulb. The benefit of a halogen gas is that it can combine with Tungsten Vapor so when the tungsten filament heats up and it starts to give off light it's also giving off. Tungsten Vapor you know tongue says essentially burning off of the filament that vapor combined with the halogen gas and then it gets deposited back back onto the tungsten filament at least some of it does so some of that vaporize tungsten gets returned that actually helps extend the useful life of the Halogen Lamp Lamp Halogen Lamps can produce a lot more light per unit of energy compared to an incandescent bulb. They also produce a lot more heat and someone who has sadly a few halogen lamp fixtures in his house. I can speak from experiences. Those things get real hot. Guys like you will burn your fingers. I know I have anyway in nineteen sixty a device built by GE became the first man made object to be recovered after going into orbit around the earth it was code named by the RV to a re entry vehicle those part of the discoverer thirteen satellite right the discover thirteen satellite kind of set the stage for space-based reconnaissance and spy missions now granted that was not the public facing part of the mission. Obviously letting everyone know hey. This is a spy satellite is not the best plan. If you WANNA use it for you know spice stuff so there was a cover story in the cover story was essentially that it was a science experiment but in reality it was a classified mission that was overseen by both the Air Force and the CIA he I a. g. would go on to open up a space center in Valley Forge Pennsylvania in one thousand nine hundred sixty one because they were getting more and more involved in and building components for the space race also in nineteen sixty there was a guy named Jack Welsh who joined Ge as a chemical engineer. He'll he'll be really important later so remember that name. Jack Welsh we'll get back to it nineteen sixty two scientists from GE would develop one of the first solid state lasers using semiconductors interestingly scientists at IBM and over at Mit were independently doing the exact same thing and all the parties pretty much crack the problem right around the same time this set off a bit of a patent rush with G. beating IBM to the punch by a little more than a week. I just find it fascinating that the solid state laser was one of those things that multiple parties invented at around the same time independently a of each other but to be fair the stage had already been set with early work in Mazars and lasers so he's not the first lasers they were the first solid state ones solid state lasers would then find their way into numerous technologies and applications early on scientists theorize that they could be incredibly useful in communications but they would become so commonplace that we'd rely on them to play our tunes for us because the laser and stuff like CD players. DVD PLAYERS BLU ray players. Those are all solid estate lasers so what was truly cutting edge technology in nineteen sixty. Two is now so commonplace that you can go out and buy one and use it to frustrate your pets. You know you can just go get a little key chain with a solid state laser on it <hes> but I'm pretty sure back in nineteen sixty two. No one thought that that was going to be a future possibility. De Scientists were also working with superconductors and magnetism now. A conductor is a material that allows electrons to pass through it conducts electricity. A superconductor is a material that does this with no resistance to the flow of electricity so under normal conditions conductors have a bit of resistance to electricity atrocity in the amount of resistance is dependent upon several factors like how what the actual material is. What is the conductive material also its thickness org gauge so a thin copper wire for example has higher resistance than a thick copper cable. They're both made of the same thing but the physical structure structure is different and that changes the resistance of the material. GE's superconducting magnet was the first to break through the one hundred thousand costs limit limit. The Gos- is a unit of measurement for magnetic flux density. I'll give you the technical definition of Gos- as laid out by the Encyclopedia Media Britannica so here we go one gos- quote corresponds to the magnetic flux density that will induce an electro motive force of one AB volt in each linear centimeter of a wire moving laterally at one centimeter per second at right angles to a magnetic flux into quote okay so that's a bit of a mouthful anyway we rate magnets in Gos- that's how we measure their strength so jeeze superconducting magnet was incredibly ably powerful it would also lay the foundation for practical applications of that type of a magnet particularly in the creation of magnetic resonance imaging Technologies Angie would play a very important role in developing that technology or the MRI as we would say <hes> very important part of GS business one of the fun VACs. I discovered while researching these episodes is that the footprints that the Apollo Eleven astronauts left on the moon are there in thanks to GE specifically specifically the boots worn by the astronauts had silicone rubber in them that had been manufactured by GE so that's G. E. footprint up there in a way but that it was just one of the contributions Ge made to the Apollo Program. I don't want to discount or dismiss any of the other ones that the company made they actually provided a lot of technology analogy to the space program. General Electric was involved in designing or manufacturing several systems related to the space race including the ship to satellite communications system that allowed the Apollo crew to send TV images from the capsule two satellites orbiting the Earth which in turn being those images down to terrestrial stations in nineteen seventy-three three another GE researcher Dr Ivar Giver. Would get a Nobel prize he had back in nineteen sixty discovered the truly odd behavior savior of superconducting tunneling so what the heck is tunneling well it all has to do with the weird world of quantum mechanics and quantum physics so oh when I was in school we learned that electrons orbit the nucleus of atoms in a certain energy state and electrons would quote unquote want to occupy by the lowest energy state available once that energy state was full of electrons then the next electrons would fill up the next available state further out from the nucleus and so on and so on until you had all the electrons that that particular Adam would have whether it was a base version of the atom or an ion or whatever this was a pretty big simplification of what is actually going on then in my books. I remember seeing the old illustrations we had newer ones too but I remember those old. All illustrations has made it look like an electron with sort of like a planet orbiting around a Sun like nucleus so in other words according to those illustrations it would appear that an electron electron has a specific position around the nucleus that you could measure detect and predict but as scientists would later learn we could really only determine partial information mation about a subatomic particles velocity and location the more we knew about one of those two things the less we would know about the other so the more you know about particle velocity. The less you know about its position. The more you know about S- position the less you know about blossomed so really we don't know whether electronic quote unquote is is an up in a specific place we see we know where it can be the various positions where the electron could possibly be found. C can think of it as kind of a zone of probability or field of probability. There's a chance the electron will be at any of those points within that field it has to be within the field unless you've poured more energy into the atom and thus pushed the electron out but it has to be somewhere in that field. You just don't know where it is so it's Kinda this amorphous fog that the electron could inhabit now if you have a situation in which this field this imaginary Mary field because we don't actually have a fog here but if this field spans a barrier that normally you would have to use energy to get across it means that the there's actually a possibility that the electron could appear on the other side of that barrier so imagine you have a hallway and there's a door closed at the end of the hallway and you have this electron field and the electron field actually overlaps the door to the point where part of the field extends to the other side of the closed door then you would expect the electron to be in the hallway. You didn't open the door. You saw the electron go into the hallway. You figure that's where it's got to be but because that field overlaps the door there is the possibility that the electron could be on the other side and because there's a possibility ability means that sometimes there will be an electron on the other side of that door and it's as if the electron has tunneled through or climbed over the door but at no no time. Did it ever have to expend energy to do that. It just appeared on the other side. This is tunneling and it doesn't make a whole lot of sense to us because that's not how we observe things in our normal world. You don't go down a hallway and suddenly little Jimmy is just on the other side of the door because there was a chance little Jimmy was going to be there. That doesn't happen been in our real world but in quantum physics it's totes thing as one of the reasons why developing microchips was smaller and smaller components becomes a really. Lee huge challenge because electron tunneling is a problem if you're determined to channel electrons down specific pathways as is the case with a circuit then then you run into an issue if an electron can encounter a gate the gate is closed but because of electron tunneling there's the possibility of the electron appearing hearing on the other side of the gate. It means that you can create errors this way anyway. Let's get back to. GE's time line in Nineteen seventy eight GE's medical medical systems division developed an improved method for taking x Ray cross-section pictures which reduced the scanning time down to less than five seconds which was an enormous miss improvement. A huge leap forward in the patient's wouldn't have to sit still for as long to get a cross section x Ray done no. I'm reminded of a time when I had to get an x ray done. I was having a kidney stone and that was painful. It was so painful that just trying to stay still was a huge challenge for me and it was technology like this this breakthrough. I was just talking about that made. Those sort of x ray scans much faster much more efficient and reduce blurring learning so that if the patient were moving because the scanning took so so little time there was a better chance to get a nice clear picture otherwise obviously if the patient moves while the picture is being taken. You're going to get blur so I'm very thankful that GE was able to make xrays much more efficient and take less time. GE celebrated one Hundred Years of innovation in nineteen seventy eight which might be a little confusing at first because General Electric Company was founded in eighteen ninety a two not eighteen seventy eight however g also traces its historical roots back to an earlier company if you listen to the first episode you know about that Edison Edison Electric Light Company that one began in eighteen seventy eight according to time line on the GE website specifically timely that's on GE's website in India. Ah The company states that in nineteen seventy eight g became the first company to have received fifty thousand patents wow while the company continued to diversify versa Fai and work in various industries a big change was around the corner and that change happened in nineteen eighty one when Jack Welsh that chemical engineer I mentioned earlier would become on the company's youngest chairman and CEO he replaced the outgoing CEO which was a guy named Reginald h Jones welches tenure is an incredibly important one in the history of Ge so I figured it'd be good to get a little background on the man I he was born in peabody Massachusetts in nineteen thirty five. His father was a railroad conductor doctor. Jack Welsh would grow up in Salem Massachusetts and as a kid he loved playing sports he really loved winning and he despised losing that'd be a fundamental part of his character would carry over to his work at GE he received a bachelor's degree in chemistry from the University of Massachusetts at Amherst and he received his Masters and his PhD the University of Illinois Champaign upon graduating in got a job at GE and he worked in their plastics division and he nearly quit his job. Bob After just a short while he felt that jeeze organization was too cumbersome. Those filled with middle management positions bloated any felt his own work wasn't being valued valued properly but an executive named Ruben got off convinced Welsh to stay with the company so he did then he would end up leading the plastic division after working there for a while then he moved onto other executive roles he oversaw the chemical and Metallurgical Division <hes> then he headed up. Ge Strategic Planning then he became a sector sector executive for the Consumer Products Division and despite all of that he wasn't first and foremost in the minds of the board of directors who are looking to fill bill that position of of CEO when we come back. I'll talk a little bit more about how he got his position and what he did with it but first. Let's take another quick break. Support for tech stuff comes from our friends at rocket mortgage by quicken. Loans home is so much more than a house. It's your own little little slice of heaven. That's why when you find the perfect place for you and your family. Getting a mortgage shouldn't get in the way imagine how it feels to have an award winning team gene by your side through every step of the mortgage process. It's awesome and exactly what you get with rocket mortgage by quicken loans their team mortgage experts. It's is obsessed with finding a better way which means that their number one goal is to make the home buying process smoother for you in fact rocket mortgage gauges there with award winning client service and support every step of the way quicken loans has helped millions of Americans achieve their dream of home ownership and when when you're ready to purchase the home of your dreams they can help you to visit rocket mortgage dot com slash tech stuff and take the first step toward the home of your dreams equal housing lender licensed in L. S. consumer access dot Org number thirty thirty rocket mortgage by quicken loans push-button get mortgage. Let let me tell you about Pete who loved hockey and always wanted to play in the NHL Pete played since he was three and begged his mom to let him stay on the ice by some nights. What's he even slept in his hockey skates? Pete practiced and practiced until one day when he was forty-seven Pete realized he just wasn't that good so he threw his skates in the trash but then you heard how Gyco proud partner of the NHL good save money on car insurance so he switched and saved a bunch so it all worked out the Welsh was just one of seven people under consideration for the role of GE CEO in nineteen eighteen eighty one he didn't even have a formalized plan for where he wanted the company to go but he did have the determination to lead G to being the number one company in every every industry in which GE had presence this was enough to convince the Board to name him CEO and his first moves were really to streamline G. E. EH while he had risen through the ranks in his decades at General Electric. He still felt that the company was bloated that opinion had not changed even though he had gone from from being an engineer an executive at the time he assumed the position of CEO GE was a mega giant consisting of three hundred different different businesses and Welsh saw that as a problem because how could you focus and be the absolute best when your presence is spread so thin across so so many businesses and so began to consolidate departments he began to sell off divisions trimming the fat part of that meant laying off employees and Welsh did that too. He did that a lot by the mid nineteen eighty s just a few years after he had become CEO G had laid off around one hundred twenty thousand employees. This is hard for me to even imagine the town I grew up in has a population of around forty thousand people people today. Ge Laid off three times as many people as were in my home town. That's tough for me to even imagine the layoffs earned Welsh a nickname neutron jack because he was like a neutron bomb going off in the company he would eliminate employees while leaving the corporate assets intact the neutron bomb is thought of as the same thing so sort of bond that can kill living stuff and leave physical infrastructure untouched. Welsh hated did this nickname it was a pretty cut throat and brutal strategy but Welsh was pretty much demanding that approach he wanted to get l. of any business where g did not occupy the number one or number two spot in the industry. If G were further behind that he would rather ditch that part part of the business than to continue to just sort of muddle along made little sense he said to be in businesses were other companies could go to market selling stuff cheaper for them what it costs. Ge to manufacture those same things in the first place so he gave an example of this. He's talked about television sets in Schenectady New York. They were still making making television sets when Jack Welsh took over ge but Welsh said that Japanese companies were selling TV sets for less money to the final customer than it would cost ged manufacturer set so Japanese television set might sell for one hundred dollars and might cost one hundred ten dollars for GE to even make a TV set. There was no way to compete in that space and at all make a profit so it made no sense to keep the business he preferred focusing focusing the company's efforts on industries where they could outperform their competitors rather than remain in business just to have a foot in the door through eliminating divisions selling off businesses says an through laying off thousands of employees the company ended up saving a lot of money to the tune of billions of dollars and Welsh wasn't just it's going to sit on those savings he looked to reinvest in the company and as far that he was looking for a possible acquisition and decided upon an old familiar her name that name was RCA now if you listen to the earlier GE episodes or if you listen to my RCA episodes you'll remember that general all electric was one of the founding companies that created RCA in the first place G. E. was also the majority shareholder until it was compelled to sell off those tares of RCA along with the other founders this was because the United States government at the time had antitrust concerns about the radio industry will the merger of GE and RCA was a six point three billion dollar deal which was the largest in history at that point and Welsh took the same approach to RCA as he had to g e namely he began hacking away at businesses. He viewed as being distractions so within three years of this deal Welsh had reduced the number of RCA employees employees to half of what they once were he oversaw RCA selling off. Almost all of its businesses really only two remained. One was the defense it's business that RCA would do for the US military and also for NASA the other was the NBC television network so this was the time when GE would own NBC was the subject of the become a frequent plot point on the TV series thirty rock. It's also an RCA effectively just became name. It was no longer the company at once was so if you listen to the RCA episodes this is pretty much at the point where the RCA story ended working for a Welsh was really tough if you're really good at your job and your job was in a division that Welsh viewed as being central GE's mission. You had decent job job. Security Welsh had employees go through regular performance reviews and the employees who are in the top twenty percent would get bonuses. Those who are in the bottom ten percent were likely to get fired and holy cats did his strategy push. Ge To new heights the company became known as the House that Jack Built the stock price for GE rose four thousand percent meanwhile the company was still churning out innovations such as groundbreaking work and fiber optics and magnetic resonance imaging systems the company also launched the Consumer News and Business Channel or see NBC in nineteen eighty nine so it wasn't just a powerful company in industry. It was now also becoming a powerful media company one other area. Welsh pushed ge into to was financial services with GE capital. Welsh lead acquisition efforts to buy foreign banks and also would become a major insurance provider. These services were at the time remarkably profitable in fact. That's an understatement when Welsh took over Ge. The company's value was fourteen eighteen billion dollars by the time Welsh would retire in two thousand one. The company's value was in excess of four hundred ten billion dollars and a large part that was due to the profitability of the financial services during that time. Also we have to say that when this happened it was a brilliant move from a business perspective. I pushed G. E. new heights and it made Welsh a very wealthy man it would also end up being the major pain point for GE's several years later that I'm going to get to that in our next episode as it begins to play into the more recent allegations about GE and its accounting practices but before we get to those dark tidings let's finish up with some of the things that the company was doing under. Welch's command in Nineteen ninety-two. Ge through its RCA space division delivered the Mars Observer Server to NASA. It'd been seventeen years since NASA had sent a spacecraft to study Mars so the intent was to launch the Mars Observer and inserted into an orbit around the Red Planet. The Mars Observer had instruments meant to study the climate geophysics and geology of Mars. The launch went off beautifully on September Twenty Fifth Nineteen Ninety two the orbiter began its long journey to Mars that would take nearly a full year and on August Twenty First Nineteen Ninety three just a couple of days before the orbiter was meant to officially enter Mars orbit all communication was lost between the spacecraft and Earth Nasa Asa was unable to reestablish contact so the mission was ultimately a failure though NASA was at least able to learn some things through the process of sending the orbiter to Mars in the first place but none of the primary mission objectives were achieved in Nineteen ninety-six in another move to dominate media NBC and Microsoft Partner Partner to gather to launch the twenty four hour news channel Msnbc in Nineteen Ninety eight GE began to adhere to a quality control strategy called called six sigma which calls for fewer than three defects per million opportunities now to achieve that goal GE would spend millions of dollars on training winning and new production processes so it was a very expensive and time consuming effort but welches view was that it would ultimately benefit the company and resulted all in massive savings fewer defects would mean less waste the first product from GE to go through this process was a medical scanner called delight speed q x slash. I C T system in nineteen ninety nine G. E secured a contract with Boeing to build massive powerful jet engines for Boeing's seven seventy seven line of jets the company produced the GE Ninety family now. This is not the only type of engine used on a seventy seven. There's a whole bunch of different variations of the seven seventy seven and some of them use engines from other companies so it all depends upon the version of the seventy seven year looking at but it is the largest and most powerful jet engine produced to date in one thousand nine hundred ninety nine G. E opened a new research lab. This one is called. Ge Global Research. It's located in Bangalore India and this marked effort for gene do not just expand its overseas markets which it had been doing for the previous decades but also to attract new talent in the field of technology talent that wasn't just located in Europe or the United States in two thousand the company unveiled. DTM Twenty five hundred which is a power plant plant on wheels. It's a gas turbine. Generator that can supply twenty two point eight megawatts of electricity takes a couple of days to setup once it's on location and it's used for for lots of different purposes including a way to supply electricity to areas that have been affected by natural disasters gas turbines by the way work in a very similar way to jet engines. You've got a compressor that draws air into the engine the air gets compressed and that's what a compressor does and then enters into the combustion chamber where it combines with fuel from fuel injectors this mixture gets ignited and then it burns very high temperature generates high temperature high pressure gas the gas moves out of the combustion and chamber into a turbine section. That's where the guests can expand an escape and as it does though the force of that escaping expanding gas turns a turbine the Turbine Irvine does two things one that drives the compressor so it pulls in more air and thus keeps the process going as long as you have fuelled burn and it also spins a generator to create electricity atrocity. Jack Welsh plan to retire from GE in two thousand but one thing kept him around a little bit longer. That thing was a prize Welsh really really wanted for. Ge knows a company called Honeywell International now honeywell makes advanced electronics for the nation industry among other things and Welsh led a a forty billion dollar plus acquisition effort to get this company he knew that Honeywell had another suitor that of United Technologies Corporation and and he added a promise to honeywell that he would stay on with GE until this acquisition was complete he would delay his retirement until two thousand one so they decided they would pursue this acquisition deal and things were going pretty well. The United States seem fully on board but then you get to the summer of two thousand one and that's when European regulators realtors expressed concern that this merger would stifle competition in the industry Welsh reportedly reached out to US government officials to see if anything could be done to smooth things things out and get the deal approved this had the effect of royally ticking off those regulators and ultimately the European Union denied authorization for for this merger and the deal fell apart Welsh who hated losing lost this one the CEO Honeywell Michael Bonsignore was shown own the door not long after the deal was scrapped and Welsh would continue on toward his retirement. Jack Welsh stepped down as CEO of GE on September seven with two thousand one his replacement would be Jeffrey r immelt and just four days after immelt would take the helm of GE the terrorist terrorist attacks on the United States on September eleventh would change the company's course. We'll talk about how that happened in our next episode in the meantime meantime if you have a suggestion for future episode of text up whether it's a company technology just a concept in tech anything like that. Let me know you can send me an email. The addresses tech stuff at how stuff works DOT COM or pump over to tech stuff PODCASTS DOT com. That's we're GONNA find the archive of all of our past episodes all all one thousand one hundred sixty plus of them and you'll also find links to where we are on social media as well as a link to our online store where every purchase you make goes to help the show we greatly appreciate it and I'll tell you again. Releasing tech stuff is a production of iheartradio's house stuff ones for more podcasts from iheartradio visit the iheartradio APP apple podcasts or wherever you listen to your favorite it shows the heart of fantasy football draft season and the fantasy football weekly weekly podcast is here to make sure you dominate your draft so thoroughly you leave your opponents reconsidering several their life choices particularly playing fantasy football against you fantasy that is football weekly as the world's longest running fantasy sports show and it's now the podcast that crushes your league with deep data dives and unique insights every weekend you can find fantasy football weekly on. Apple podcasts are on the iheartradio APP or wherever you listen to podcasts.

General Electric Company Jack Welsh GE United States IBM Ge Global Research engineer CEO Red Hat GE Ninety iheartradio GE capital GE IBM dot Ge Strategic Planning NASA CEO GE Vincent Schaefer
Editors Picks: January 9th 2020

The Economist: Editor's Picks

20:59 min | 1 year ago

Editors Picks: January 9th 2020

"It's Thursday the ninth of January twenty twenty. I'M JOSIE DELA THE ECONOMISTS International Editor. Welcome to editor's picks where you can hit three of the defining stories from the paper. This week they're read aloud. So you can listen on the go Cover examines the fallout from the killing of Qasim Selemani ridding the world of a menacing individual and forcing around curb. Its aggression and really would be worthwhile achievements. This may indeed be how things turn out the trouble is that nobody including Donald Trump can count on it next cannon new CEO. Save the reputation of Boeing. The world's biggest aerospace company and finally finally a right royal shakeup. The House of Windsor Starts long-awaited restructure. This door is your about here are just a sample of what's in the paper with a subscription grip. Shen you can read or listen to all of what we say. Please subscribe Goto economists dot com slash radio offer to get your first twelve issues for twelve dollars or twelve pounds fast up relations between America and Iran are entering a dangerous new phase. The killing of Kacem Sulamani Amani by an American drone on January third threatened to bring the United States and Iran closer to war than at any time since the hostage crisis in nineteen seventy nine in part of the world has lost the power to shock the audacious killing of Iran's most important general ordered by President Donald Donald Trump sent Iran reeling in public ceremonies millions of Iranians put aside that discontent with the regime. Tomorrow General PSEUDOMONAS death blood-curdling threats of destruction issued from the Middle East Eckerd by warnings of mayhem from Western experts and yet a retaliatory missile south strike onto American bases in Iraq. Five days later kill nobody. It looked like a face-saving attempt by around two wine. The crisis assist down. If that were the end of it Mr Trump would be right to say that his strike had worked as he suggested on January eighth ridding the world willed of a baleful individual and forcing Iran to curb its aggression really would-be worthwhile achievements in the coming months. That may indeed be how how things turn out. The trouble is that nobody including Mr Trump can count on it to tests will define whether the killing of the general was a the success its effect on deterrents and on Iran's regional par for the past year Mr Trump has stood by as Iran and its proxies attack attack to merchant shipping in the Strait of her moves to American drones oil facilities in Saudi Arabia and military bases in Iraq. Because was it concluded that there was no price to pay Iran was becoming more brazen and belligerent. The beneficial effect of the drone strike on January third is to reestablish the idea that America is willing to hit back. Iran's restraint on Tuesday this week signals that it does not want to face an aerial onslaught by American another Iranian. Missile strike is less likely today than it was just weeks ago and yet Iran's thirst for revenge is surely not slaked even if they avoid overt forms of aggression the revolution regards are likely to pursue other tactics including cyber attacks suicide bombings by proxies assassinations of American officials and an array of means they have honed over the years. These reprisals could take months to unfold. As the killing of generals who Damani recedes Iran will once again aimed begin to probe the willingness of America to use force in an asymmetric world. Week parties often retreat in the face of force only to return turn they have more patients and greater tolerance of pain than a distant superpower. Does the second test is whether America strike weakens gins Iran's grip on its neighbors. Iran has a network called militias proxies and forward bases for its could force across an area that it stretches from the Mediterranean to the Arabian Sea. This is about projecting Iranian PA regardless of the atrocities committed by its clients so just by Shah Al Assad who used nerve gas on his own people without a whisper of complaints from Iran General Shamanee's death deprives deprives this grim network its architect and orchestrator. It is too soon to judge the caliber of those who are taking his place but if the general was as exceptional as reputation than his loss will be felt it may also deprive the kudos force of funds. The Iranian state state is desperately short of money. Ordinary Iranians have noticed that resources which are going on guns and mortars might be better spent on schools hospitals battles but the complications here to after the assassination. Iran is hell bent on pushing America out of the Middle East. It will start in Iraq where it has mostly outmaneuvered America. The government in Baghdad is dominated by ship politicians in thrall to Iran one on January fifth. Iraq's parliament passed a resolution calling on the government to start a victim foreign troops including five thousand or so American can soldiers. The vote is not binding. Many Iraqis resent Iranian influence and American money and weapons are valuable to Iraq even so it increasingly seems more question of when rather than if the troops finally go still most frightening is Iran's nuclear program program. Mr Trump pulled America out of the agreement with Iran signed in Twenty fifteen with six world POWs which limited its ability to get a bomb He argued that he would be able to negotiate a better deal which also took in around nonnuclear regional activities proposal. He repeated in his the press conference this week last summer. That was speculation that Iran was ready to talk but that now seems out of the question possibly for a long long time indeed on January fifth Iran said it would no longer abide by any restrictions on the enrichment of uranium. It has every every reason to indulge in nuclear brinkmanship not only as a bargaining counter against America but also because were around to get the bomb it would permanently oblige America to change its calculations about using military force against it. The lack of an American strategy strategy for negotiation means that the generals killing his reduced America's around policy too extreme sanctions accompanied by an ill-defined threat it of massive retaliation if the regime misbehaves yet. Starving around in submission is unlikely to work. Other regimes resisted American pressure. For longer there is no path to the peace. Mr Trump. This week said he wanted indeed. Because America's red lines are unclear. The danger of blundering into war remains meanwhile sanctions and deterrence will gradually become less potent. Because they always do if America wants its approach to be sustained. The price could well be repeated rounds of sanctions buttress by sustained military. The tree counters to Iranian aggression and an aerial campaign. If around appears about to get the BUM IS MR trump prepared for that. Are His successes successes. Both Barack Obama and Mr Trump realized the turmoil in the Middle East consumes American resources and attention that would be better focused on Asia. Mr Obama tried to negotiate his way out of the region and failed. Mr Trump is trying to bully his way out instead instead but he is likely to fail to because his strategy towards the regime in Tehran depends on America being present in the Middle East to contain Iran on and maintain deterrents the dramatic assassination of general. Sumani may look like a gamble that has paid off in the short term. Unfortunately currently it has not solved America's Iran problem next next cannon new boss salvage the reputation of Boeing. If anyone doubts that David Calhoun who becomes Boeing's new boss on January thirteenth is taking on one of the world's most difficult jobs think again on January eighth. The firm was caught up in a new tragedy. The the deaths of one hundred and seventy six people aboard a Boeing seven three seven eight hundred passenger jet bound for Ukraine that crashed shortly after takeoff in Iran. The aircraft involved is different from the seven three seven. Max planes that went down in to add disasters in October two thousand eighteen and last March killing three hundred and forty six people and plunging burying into crisis all the same getting to the bottom of the accident amid open hostility between Iran and America will be yet another headache for a new. CEO Fighting to save the skin of the world's biggest aerospace company. Lucky then you might think that Mr Calhoun is a g e man. The latest in a long line of chief executives all male school at the knee of Jack Welsh over the decades since Mr Welsh gave up his messianic leadership of GE he in two thousand one his sultans like Mr Calhoun of walk tall often literally as in the case of Jeff. Immelt who succeeded Mr Welsh Welsh the industrial conglomerate across the corporate landscape. They have run big American firms. Such as three M Chrysler Home Depot Honeywell yeah well and foreign ones like ab of Switzerland. Nowhere have G. E. Veterans had such an impact as at Boeing which has been under the sway. I have Mr Welches proteges almost constantly since its merger with McDonnell Douglas in one thousand nine hundred ninety seven yet. Ge Man's legacy you see is a checkered. One with a few exceptions of which was to. Calhoun is probably one. Mr Welsh meant it a fast share of duds including Mr Komo. This compounds Mr Calhoun difficulties. Because even at Boeing the GE luster has lost its sparkle. Indeed some go so far as to blame the mistakes that led to the seven three seven Max Disasters on GE style focus on managerial efficiency. Bean encountering to its critics the infused Boeing as a result of the McDonnell. Douglas Tie up ending a long period of dominance by Boeing's engineers. Yes Mr Calhoun must face up to these criticisms but not before his immediate task of overseeing a response to the Iranian disaster disaster after that the overriding priority is to salvage Boeing by reassuring regulators crews airlines and passengers. Inches that a software fold that has led to the seven three seven. Max is grounding is fixed and the aircraft is safe to fly only only then can he sat burning on a path that is less managerial and more ambitious than before it will be tough. Mr Calhoun L. Hoon sat on Boeing's Board for decade and is as infused as anyone with GE culture. If he succeeds he will be a rare example of G. E. man who finally lives up to the hype. The Welsh era reputation rests on three pillars. The first is a high testosterone leadership style akin to jocks on a sports team. Mr Welsh Co wrote a book called winning Mr Calhoun who join Ge. In one thousand nine hundred seventy nine and left in two thousand six cowrote one titled How Companies Win No points for spotting the operative operative word. The second pillar is a Kerala ray of the first ranking and Yanking the losses bidet employees ease executives were subpar business units ruthlessly weeded out in two thousand seventeen. Mr Calhoun approvingly described the culture under Mr Welsh coach. Do something a bit better every time or you will probably not going to survive the next day. The third is a disciplined focus. Focus on cash to both to returns rather than on breakthrough innovations. Mr Welsh excelled at this while running. Ge Though oh a soaring stock market helped so did David Cotija veteran who led honeywell from two thousand to two thousand seventeen Shumpert us back of the envelope. Calculation of the impact of X G E men on nine American firms. They lead at some stage between two thousand and today shows that by and large they improved margins and shoveled more cash to shareholders but pad back investments putting aside missed to coach success at Honeywell. Their performance relative to the broader stock market was mediocre though. Add to that the record Mr Immelt who's sixteen eighteen year. Tenure left the firm on its knees. Mr Calhoun performance is harder to gauge because he led Nielsen a private company from in two thousand and six to two thousand thirteen and joined blackstone the private equity group Blair. After his new role at Boeing is the final chance to rehabilitate ability. The image of G.. Man Several of them have tried and ultimately failed after the merger with McDonnell Douglas that firms boss boss Harry Stonecipher also formerly of GE led Boeing in two thousand three to five for the next decade. The firm was run by Jim. mcnerney another Ex. Ge In twenty. Sixteen Kevin mcallister yet. Another G. Even became head of Boeing's commercial aircraft division until he was ousted in October. He likes to Calhoun. and Mr mcnerney once Ranji e aviation business which is Boeing's biggest engine supplier search man brought with them G.. Values taking a cue from Mr Welsh. In two thousand and one Boeing moved its headquarters from Seattle to Chicago. Putting distance between the suits in the C. Suite and the engineers as Mr Stonecipher Putin two thousand and four. When people say I changed? Change the culture of Boeing. That was the intent so it's run like a business rather than a great engineering firm. Shareholders loved it over the fifteen years years since Richard Abolitio of the Teal Group. Aviation Consultancy says seventy eight billion dollars was returned to shareholders. Doing wonders for Boeing share price. But in the process engineers input into decision making was relegated which may have contributed to the seven seven three seven. Max is tragic design flaws. The seeds of the Max disaster were planted years ago. He wrote recently. Putting Seattle's finest back at the controls of Boeing is no guarantee of success. Dennis Muhlenberg who Mr Calhoun helped oust as chief executive active because of his poor response to the crisis was an engineer. Mr Calhoun must start overhauling. The company culture from the top down as Michael. UC MMA season GE watcher at the Wharton School in Philadelphia puts it the complexities of business are much greater than Mr Welsh's day supply chains and customers span. The world and technology runs through everything before G. E. Man becomes a relic of history. He faces his toughest challenge. Yet and finally carrying Meghan go who private part of Britain's royal families to spin itself off from the rest of the firm in what they described as a carve out prince. It's Harry and his wife. Megan Markle Aka the Duke and Duchess of Sussex said on January eighth that they intend in effect to take their arm. I'm of the operation private stepping back from duties as senior royals and working to become financially independent from the rest of the house. House of Windsor Group. It has been clear for some time that Harry and Meghan were not a natural fit with the group attempts to package them with the Duke and Duchess of Cambridge Aka Prince William and Kate Middleton in charitable foundation were unsuccessful. Although the brands bands were distinct. The first appealing to woke millennials the second to more conventional customers. They proved rival rather than complementary hurry. Hurry Megan's move was announced without consultation with the group's management but may have been encouraged by developments within it. The stock price has tumbled recently as a result of missteps by Prince Andrew who has now been fired Prince Charles who will take over the top job in the not. Too distant future has hinted that he plans to cut costs and slim down. Its operations as part of a broader restructuring. Rather than wait for that shakeup Harry who knew he was unlikely ever to get the top job has now decided to cut loose use. This separation has the advantage of strategic clarity and is likely to unlock value. Given that the Harry and Meghan brand was widely perceived to be undervalued. The new entity will now have more freedom to diverge from the positioning of the parent group and and to tap overseas markets. The couples say they plan to divide their time between Britain and North America. Exactly how the new entity I will generate revenues to finance itself and the charitable foundation that it plans to launch is unclear. The couple have said they will forgo so money from the sovereign grant through which the government pays for the royals though not whether they are also planning to do without the cross subsidy they get from Charles. Charles Harry has only modest start up capital mostly. His inheritance from his mother and his human capital consists of a tussle heissel a certain amount of puppy ish charm and the ability to fly helicopters. mismarked could at least resume her acting career and would be well placed to win apart in the next season of succession an HBO series on the troubled offspring of a manipulative autocrat. If the spin off goes well might other. Parts of the group make similar moves Print Sans Sporting lifestyle brand might have potential chill as a standalone entity particularly after it's advantageous product placement. In the later season of the crown a Netflix series depicting dictating a fictionalized version of the companies behind the scenes operations. The Wessex York and catch browns are not however thought to have value. Thanks for listening to editor's picks to read or listen to the whole of this week's edition go to economists dot com slash radio often. Fun I'm Josie Delap and in London. This is the economist.

Iran Boeing America President Donald Donald Trump David Calhoun Mr Calhoun Jack Welsh GE Iraq Mr Immelt Mr Welsh Mr Calhoun L. Hoon Mr Welsh Co Mr Welches Charles Harry engineer editor Mr Komo Middle East Mr Stonecipher Putin
Marcus Baram

Two Broads Talking Politics

27:30 min | Last month

Marcus Baram

"Hi this is teddy today. You're listening to marcus. Baram project director of the fifty one hundred pay gap series on capital and main onto broads talking politics it direct scene. Hi everyone i'm kelly. This is too broad talking politics. I am on today with marcus baram. Who is a veteran business journalist and is the project director for a new series out from capital in maine called the fifty one hundred pay gap. So marcus nice to meet your thanks. Fatemi yeah thanks for joining me So a while back we had had a couple of other people from capital and main on to talk about another project i am. I am just so intrigued by the the reporting in the work that has been done by capital and main. Could you tell me a little bit about just You know sort of the the general outline of what this fifty one hundred pay gap project is about sort of with the aim of our sure. Sure sure thing. So i mean you know. We have covered a lot about income inequality but kept on. May we actually had a series run during the twenty twenty campaign called united states of inequality which looked more at Looking at the issue through the lens of the campaign and was being discussed on the campaign in looking at battleground states. So it's an issue that we're very concerned about and by report about a lot And then last fall the rand corporation a pretty middle of the road. Nine not a lefty think-tank they've been around for many years. They released groundbreaking. Study at really very thoroughly documented. This massive income shift. I'm to the richest americans since the early nineteen seventies and according to their research a full-time worker. Earning the median income of three thousand dollars today would be making close to a hundred thousand. If the nation's economic growth. Evan shared light as it had been from the world war to to the early nineteen seventies and that statistic kind of stuck out to us kind of stunning because even for us because in a all too familiar with with how income inequality has grown in the last few decades especially in the last ten years and most americans have think. Would you know i know that. There is this phenomenon They haven't gotten a raise in ten years or fifteen years. Their neighbors haven't back less money to pay and spend on you know whether it's the mortgage or groceries but not that it's that extreme to think that somebody making fifty thousand dollars today would just the average median income would be making should be making double that. If it was transit continued we sorta shocking to us in so inspired the name of the project right away. We thought wow that. Fifty hundred is is very compelling Title for a series that further look into income inequality and so that became the title this series fifty one hundred pay gap and then we wanted to focus in a much more in depth. Way that i've seen before. What are the real causes of this extreme income inequality and not looking at just a you know what you read about. What most people assume as the the The causes when they look at obviously the decline. In union ization across the country globalization. The role of technology buzzer all factors. But there's also a lot of other factors that were just learning about or just becoming more aware of that involve policy changes that happened in the seventies and eighties where either is no tax code changes or legislation or no business lobby decisions that end up exacerbating this income inequality and kind of setting us on the road where we are today and so what we wanted to do was to look at what actually happened. And who were the people you know to borrow from hamilton. But if you want to know who the people in the room when that when that when those decisions were made and what groups and think tanks and lobbyists in economists were involved in in crafting those decisions at ended up transferring literally trillions of dollars from working americans into the hands of the wealthy or wall street firms and took it away from working so that became the focus of of the series and has got a three legs to it. Basically part of it evolves looking at those reasons looking at the causes and a very in depth reporting about that the second parties human impact stories that tell the story of how that has played out and we've published a number of those one of them looked at a family that the ge family where most of the families worked for the local g. e. factory for the last sixty years outside of boston. Mass and lend mass. We also did a story about a three part story about married couples who were social workers and arizona uh and how their profession and their individual lives have been impacted by a low wages as social workers. Get the story coming up by teachers in florida which is one of the states that has the lowest pay rates for teachers so a lot of those human stories that bring it home for people and one thing i want to focus on where those stories is looking at i'm generational income inequality which people which to me is uniquely compelling because america we always prize the idea of social mobility any the idea that you can always an parents want that they want their kids to go beyond what they've made and now at buy a bigger house and have a great life. I see it on my own family. My great great grandfather came to this country from russia. In early twentieth century his profession on the census form would with junk peddler basically sold junk and his little shuttle on russia he went around selling pots and pans and then his my father is great. Grandson was a lawyer in boston. And i'm not sure if i'm you know beyond that but it just that myth of american mobility and that has been destroyed and what you see is within families even if they're working in the same profession they're working at the same auto plants or even if they're in the same accounting firm for white collar examples the younger the sons are actually making less in terms inflation adjusted income than their fathers were who in many cases making less than their fathers were. And that you see that across the board and that's one thing we want to bring across. These human impact stories is that it's not just about blue collar workers. You always read about the guys in detroit working for ford. Gm for decades and how they're making less money or you work about you beat about rural poverty and farm workers would definitely have seen declines in wages. But it's across. The board in white collar professions from marketing analysts to travel agents to Accounts like i said in hospital and helped her workers so just to describe the breadth of the of the workforce. It's impacted by this income. Inequality is a key part of the series and then the last part is just to look for solutions on some of that is coming out of discussions in dc right now energy about whether it's infrastructure bill or other pieces legislation but There's a lot that can be done love. It's not being discussed In some things are being discussed like minimum wage increases or return to strengthening unions and collective bargaining agreements. So those three legs of the stool or kind of the focus of the project so last week the series put up a piece that a almost has like a click you title fourteen shocking facts on inequality in working americans and six stunning facts about the super wealthy and these numbers are just mind boggling. Like it's hard to even wrap your brain around some of what this is saying You know things like the median. White family has forty one times more wealth than the median. Black family twenty twenty two times more wealth than the median latino family and these statistics. About the what. You're talking about the the very little change compared to the the gdp so how do we. How do you in this series. I get these things across truly to people to be able to wrap your brain around. I mean these aren't new to me i. I've seen a lot of this before. I still can't really get it in my brain way. It makes any sense. so what. what's the plan in this series to to help. Readers really try to grasp that. I guess the plan is to a little bit shock and a little bit shock and awe. But it's effective. Sometimes i think it can be difficult because i think sometimes when readers especially when they read about the one percent of the point zero zero percent in how much they own compared to the bottom ninety percent. The numbers are almost so mind boggling. That doesn't really make sense. It's almost the phenomenon happening with kobe. But once the numbers got so high people couldn't really almost didn't have an impact as much almost had like a reverse effect where people cared less some cases. So i think there's a danger there where sometimes some of these facts can be a little bit They lose readers so you look for information on. I think makes more sense to people idea that you know half of. Us adults with lower incomes skipped necessary medical care because of the high cost or the fact that you know education costs have increased six hundred percent more than incomes Or the fact that you know one of four americans have no retirement savings. I think there was a more tangible facts that people can relate to because they either know it down deep on a on a instinctive level or just from. They have a sense that something like that is happening. Puts a number to that to that That sense that that notion that something's off and then the second goal i think is ahead people. Think about okay. What can be done here. This isn't like people often obviously talking about globalization which was a big factor Definitely through the ninety s and two thousand but really since two thousand and ten especially because salaries have gone up and china and other countries hasn't had that big impact me technology definitely does but even that was not always pronounced as people think so i think part of the goal with these facts and with a series in general is to get people to think like okay. These are not inexorable forces. It doesn't have to be this way. This isn't like something like oh the world is changing and just there's nothing you can do about it but a sense that they have the power to make change other in terms of policies. They support who they vote for this to acquire more knowledge about. You know how these policies get past or don't get past. There's a lot of changes here. That i think are unknown to most people like one thing. We're going to focus on his overtime wage saga. How for a long time overtime wages were pegged to a certain dollar amount which was twenty nine thousand dollars. I think back in like eighty one and anybody who made more than that didn't qualify for overtime so back then that that included a lot of people you know who basically did qualify but that number stopped being pegged to the consumer price index so for three decades until obama tried to change it. Two thousand thirteen or fourteen had a shrinking shrinking number americans who actually qualified for overtime and was one of those small tweaks that had been made that most americans probably aren't aware of but it has enormous impact on all kinds of working americans in normally would qualify for a time and would benefit from obviously those higher wages. Especially because in many professions people are working harder than ever to make the same wage which basically means a pay decrease when you're working more hours for the same wage so so is this income gap. Is this an american problem. You know. I think you started talking about that. With the the idea of globalization not really being You know what is driving this. Is this something that You know you said we don't need to sort of accept this and take this for granted. Is this something that other countries are figuring out where at least some other countries are figuring out ways are better than what we're doing. I think so. I mean in general. There's obviously countries bad. Havoc extreme income disparities like zil at mexico but in other countries in europe. A lot of the cd have more sociability. Where there's actually more people who you know can come from the bottom and make it to the top. Even though it's sort of the american dream and the american myth is actually easier in many parts of europe to make that. I'm that stretch change. And i think some of those countries were much smarter about handling the consequences of globalization. So once they're factory workers in germany or in france started them. Some of the companies started outsource work to india china or other countries lower wages. That they did more to support their owned. National workforce's i there was more concern. Paid either in terms of keeping salaries at a certain level or roy. Giving them certain not training. There was more support a lot of this by the governments for those workforce's whereas here became much more libertarian. Kind of free market model. Jack welsh model from ge. Just be leaning means you gotta compete you a fire people and just bring it down to the core increased productivity workers. If they're on the way you just trim the fat and get rid of them. And that i think besides the medium packed of people losing their jobs of course and you know losing income and and being able to afford less and even become poor. There's a whole psychological mindset there to that advan ripped this kind of social contract. We had in this country. Where until like the forties and fifties and sixties you read quotes from like the ceo's of gm and other big companies at talked about what's now referred to a stakeholder capitalism bear priorities were to answer to their employees or customers community in their shareholders. And then somehow round the kinda late seventies early eighties should people like jack welsh in some of the chicago. School economists focus became on shareholder. Primacy at all that matters of making a profit and there's dividends that go out to the shareholders and everything else that gets in the way of that should be trimmed and so that. I think had really devastating impact on kind of sociological level. Where this social contract have in this country got ripped up and became kind of a doggy dog. World was let us to where we are today where people are really realizing like. Something's wrong here. Allen somebody when you have like jeff bezos and bill gates and others who have so much wealth that they gotta dominate in many respects their sectors and have so much more money than than literally tens of millions of americans. There's something off there so we've been talking here some about Federal policy but one of the pieces that has come out has talked about state policy to talks about an arizona in particular. What role do you think that has in this country to about having not just federal policies that affect workers an income but also Fifty different states plus dc with their own laws and then maybe individual community with our cities and counties. That may have laws to how. How do we sort of look at all of that. An entire big country with a a really diverse set of things that are going on and try to figure out how to how to fix things how to make the changes and its question. I mean it's a big challenge I think because part of our the design of our democracy that has that divide between federal in the states and localities. And that's not gonna change overnight And so i think we need to do is is find ways to happen than a lot of countries in these saw. This happen a lot of counties and states. i think it was you saw. This happened obviously in the early twentieth century. All these big textile mills in the north may went moved down south alabama mississippi and southern states because they could pay workers less. There are fewer rules regulations. And that's continued to this day. Wherever see of some states that are very very poor and give very little public support to the poor and other states that you know relatively european could say like you know whether it's new york or california and i think i mean a lot of it is in the politics in humidity organizing and you see it. In some ways a model is the the fight for fifteen minimum wage battles waged over the last ten years which becomes such issue especially retail chains in fast food restaurants which are everywhere. And so you see more. And more places even like in texas or arizona or other states that have traditionally been very conservative and very tight money and their social policies. There's movements especially among young people. I think for more equity and to increase wages and you've seen minimum wage increases in some of these states some of these cities that have not had the catastrophic effects that a lot of conservative politicians had predicted that everyone businesses would be demolished and they'd have to lay off workers on mass and that hasn't really happened almost every case with minimum wage increases. So there's a way. I think that that some groups and whether unions or community organizations are realizing that they can do the beyond the grassroots work and convince workers in other states who've long been of denied certain benefits and rights that there is a better tomorrow for them. It's not sort of a given that to be able to get a job and feed their families. They have to be paid too little or not. Be able to organize case obviously with in alabama with the amazon organizing effort which failed. I failed but i think it was kind of stunning. That actually took place in the first place. And i was any support because i think people were five years ago. Ten years ago would have right away written that off and there's a little momentum for that to keep drawing especially as you see more scrutiny of big tech and were pressured organized workers in those industries and also more pressure to organize workers in healthcare in other professions like gig workers which obviously we didn't have fifteen twenty years ago but there's more awareness of people door dash into the car delivered people who kind of have no rights and their considerably employees. So there's a lot of awareness. I think that that the newer like economic more that the the labor structures that were got a building for the the century in for the future decades are have their own inequities and making it worse than ever and people. A young people are very aware of that. I think especially realized that they can make changes. They can demand more Especially when you think about other parents. Grandparents lived in comparison so how can our listeners. Find a and follow along with this series or we're going to be posting probably like three stories a month for the next at least ten months to go at least through the end of the year and beyond so capital. A dot com. You'll find we have by prominent button for fifty one hundred pay gap. That's where we have a landing page with all stores who published so far and like. I said about every week and a half every two weeks of any story In a very from these kind of human impact stories to stories about the racial wealth gap which is a whole other story. A deserves a lot. More attention to In-depth analysis stories and investigative reporting to It's all aaron is also a very visible and social media pushing that like one of the reasons that we created sort of that that on fourteen shocking facts unequality working americans that article you mentioned. Is that a lot of those can easily shared so we made it very easy to show on twitter or we can take each of those facts. Those harsh facts that are stunning and making it easy for users on twitter instagram or facebook to share those numbers so a capitola main dot com. That's real find. The service and i would encourage listeners to they have ideas either examples of things. I think are worth researching whether it's wage theft or other major factors that that exacerbating inequality or to individual people whose whose profiles are worth telling because they exemplify the this trent. What's happened and that extent a will put links up to that So people can find the series on social media So that and and so that they can share it as well marcus. Is there anything else you wanted to make sure we talk about today. Yeah i do. I mean i think it's What's interesting is that. There's that old cliche about nevada crisis go to waste. It's been used by both conservatives and liberals i think this is really a time. We've just been this. We're still suffering for this pandemic adam. Anyways as people might know the pandemic is exacerbated income inequality where you saw. I think we have a number in our in our list. There about how you know billionaires actually grew their income by one point six two trillion dollars from march twenty twenty april twenty twenty one which would have paid for stimulus checks of four thousand eight hundred dollars for every single american including kids and the elderly so there. I think there's an opportunity here because people are aware of that and especially people who've lost jobs and because of the way the economy's been up ended. There's an opportunity here to do something different to step back and take a different approach to how we compensate people. The right suite of those people workers how we structure companies from co-management of boards instead of having to shareholders or outside directors on boards. You could have employees as it doing. Some countries in europe where half the board of directors employees which has a big difference in how the companies run. There's a lot of different possibilities here to tweak things and change things up ben's things and in a way that bet is good for business in creates more jobs and you know creates veteran comes for people and more benefits so he made all this chaos and this moment of crisis. There's an opening there. I think for for things to be done differently and you see it even in our politics. Thank you do see discussion and might be cynical but you see it on the right to on republicans a lot of talk at that. Trust talk a lot of suspicion of big corporations and big tech and it might be an opening there for a bipartisan effort. To to kind of change things so we should take advantage of that. Yes well this is excellent. And i really look forward to reading the series. Asa comes out So marcus thank you so much for joining me today and i hope people will will really get a good read while thank you very much. Have me appreciate it and Yeah thank your listeners for reading. Thank you for listening to bras talking politics. Part of the dim cast podcast network. Our theme song is called. Are you listening off of the album elephant shaped trees by the band. Immune ary and we're using it with permission of the band our logo and other original artwork by matthew wetland and was created for use by this. Podcast you can contact us at two broads. Talking politics at g mail dot com or on twitter or facebook at two broads talk you can find all of our episodes at two broads talking politics dot com or anywhere podcast found.

Baram marcus baram Fatemi marcus jack welsh russia boston america arizona Evan maine kelly Grandson hamilton
452. Jeff Immelt Knows He Let You Down

Freakonomics

48:07 min | 5 months ago

452. Jeff Immelt Knows He Let You Down

"Freakonomics radio sponsored by td ameritrade now. That commission free trading is the norm. It's time to rethink how we define value value is more than price tag. It's the confidence of knowing. You have a team of traders on the bond to answer any question. It's thinker swims powerful charting and analysis tools. And it's a personalized education to fine-tune your skills value is becoming smarter with every commission free online equity trade discovered true value with td ameritrade. We're smart investors get smarter freakonomics radio sponsored by progressive insurance where customers save an average of more than seven hundred and fifty dollars when they switch and save visit. Progressive dot com. To get your car insurance quote it only takes about seven minutes. National annual average auto insurance savings by new customers surveyed in twenty nineteen potential. Savings will vary so. There is a silly question that a lot of authors get asked which is. Why did you write this book silly because it's usually obvious but in your case. I don't think it's such a silly question because a you don't need the money let's be honest and be you don't have a tale of triumph to tell so. Why did you write the book. Say really two reasons. I felt like the story had been out there but lacking context and quite honestly not always being truthfully told and the second thing is to all leadership crisis leadership and i have lots offered that to pay. That is jeff immelt. I worked at ge for more than thirty five years. I was the ceo for sixteen and yes g. That's general electric. Gave him out a lot of experience. With crisis leadership. I lived and lead at a time of mensa volatility and change always did my best. Somethings working in. Some things didn't okay. Let's start with what didn't work out. When immelt inherited the ceo position in two thousand one from the legendary jack welsh. The stock price was around thirty eight dollars representing a market capitalization of just over four hundred billion dollars when immelt left in two thousand seventeen. The stock price had fallen to around twenty five dollars with a market cap of around two hundred and twenty billion a drop of roughly forty five percent and now just four years. And to ceo's later john flannery lasted just fourteen months. And larry culp now has the job. Ge's stock has fallen. Even further in the company is only worth around one hundred billion dollars or one quarter of what it was when jeff immelt took over in two thousand one as recently as two thousand and five g e was still the most valuable company in the world today. It's not even in the top. One hundred of companies when ranked by market cap. The financial collapse is only part of the story for decades general. Electric was the quintessential american corporation. A combination of scientific ingenuity and muscular execution. It was founded in eighteen. Ninety s to capitalize on the inventions of thomas edison including his lightbulb. For years. its headquarters were in schenectady. New york built up around on machine works. I happen to have been born in schenectady g. e. was the biggest fixture on the horizon. Literally famous cursive logo visible for miles. In the night sky and economically to it was by far the biggest private employer in the region and many would say the best employer. ge had grown into an industrial conglomerate making airplane engines and locomotives gas turbines and medical equipment. During the jack welsh era it became a much broader conglomerate expanding into financial services insurance commercial real estate even the nbc television network. Some of its growth was spectacular. Just as the economy in california is larger than that of most countries. Jeez finance arm. Ge capital was bigger than most banks but in the past decade plus ge has been selling off parts to stay alive including last year it's iconic lading division in two thousand. Eighteen g was removed from the dow jones industrial average. It had been the last of the original twelve members and then there are the allegations of accounting and other financial fraud brought by the securities and exchange commission and the department of justice in two thousand and nineteen. Ge agreed to pay a one point five billion dollar penalty for its misrepresentation of the subprime residential mortgages sold. There was a two hundred million dollar penalty last year for violating a number of accounting and antifraud provisions and a similar fifty million dollar penalty in two thousand nine. Most of these alleged violations happened on jeff. Immelt watch although in recent book called lights out about. Ge's decline the wall street journal reporter's thomas brighter and man right that fudging. The numbers was a standard. Ge practice that went back at least to the jack. Welsh era the exposure of this practice can help explain the decline of general electric. There were other reasons to according to his critics. Jeff immelt strategy to modernize the old industrial company was radic buying high and selling low as he shuffled. Ge's portfolio and placing bad bets. Bulking up in the oil and gas sector for instance just in time for oil prices to tank. So yeah. those are the things that didn't work out for jeff immelt when he was. Ceo of general electric the things. That did that list is shorter today. Unfree economics radio. How immelt won the ceo job in the first place. You know stephen near death. Experiences are really good for you. One big reason. Things went sideways at ge which immelt says no one could have prevented. We were kind of cloud damage if you will. We hear about his bitter end. What were the last month like they were excruciatingly sad and why jeff immelt will forever be marked quite literally by the company that got rid of him i google tattoo danbury because i wanted to be far enough away that maybe nobody would recognize me. That's coming up right after. This is freakonomics radio podcast but explores the hidden side of everything. Here's your host. Stephen dubner i have to say you are my favorite kind of ceo to interview a former co. Because when you're in the job it seems like there's very little incentive and time honestly to really say anything interesting now you can speak your mind. Do you find that liberating. You've got a little bit more time to think about things when you're in the job it's such an intense seven by twenty four job. I still have a desire not to trash people things like that. I am able to be a little bit more frank for sure jeff. Immelt new book is called hot seat. What i learned leading a great american company. He doesn't trash a lot of people in the book. It is primarily a defense of his performance which not surprisingly he rates substantially higher than his critics. Do this interview with is part of an occasional series. We call the secret life of a ceo. We've had john mackey from whole foods ingenuity who was then ceo of pepsico and in two thousand eighteen. We had jack. Welsh immelt predecessor. At ge here is a relevant exchange from that welcome you in nineteen ninety nine not long before you retired from ge you said that your ultimate success would be determined by how well your successor grows the company over the next twenty years when you said that. Ge's market cap was up north of four hundred and fifty billion. Now it's almost twenty years later it's just north of two hundred billion so talk to me about that. I know that you. I don't talk about that. You don't why not. I mean it's public record. You are anywhere you want. But i i haven't commented on my successor once in the twenty years. I don't gender comment now. You can judge be anywhere you want on where i picked the right guy on you get numbers and one from those numbers would question. How well did not commenting and i you if you want to give me a black gimme a black mark. I did the best i could. I take the so. Why did jack welsh pick. Jeff immelt how did immelt put himself in that position and then what went wrong. Email grew up in cincinnati where his father worked thirty eight years for you guessed it. General electric in the aircraft division most was career was in sourcing of purchasing fan blades. And castings and things like that. You know we used to go to london airport and watch planes land. We never miss an open house where we would go see building eight hundred and see how engines were made just loved. You'll love the business. Love the company jeff. Immelt studied maths at dartmouth and got an mba at harvard. In between he worked briefly at proctor and gamble where he was buddies with future. Microsoft ceo steve bomber. After business school immelt took a sales job in the plastics division at g. He would go on to run or help. Run plastics appliances and healthcare. So i'm gonna tell you jeff My favorite jackie invention that. I wanna hear yours okay. So my favorite story is about physicist named brennan vonnegut who worked at ge research in schenectady discovered that if you fly up in an airplane and add droplets of silver iodide to the clouds. You can make it rain okay. But even better his little brother kerr worked as a pr guy for ge. Oh there you go. yeah for sure. And then kurt of course went on to write these amazing novels with all sorts of fantastical elements. And i'd like to think that his big brother's ge weather experiments played a role in kurt von and novel writing the so. That's my favorite. Ge invention what's yours. I always go to healthcare. Just because it's so identifiable. So i would say it's between the ultrafast. Ct which can freeze the beating heart so you can really diagnose vascular problems and circulation problems and then i would go from there to the ultrasound. A hand held ultrasound which is sold in india and africa. I've always found that. There's just a great intersection between technology and solving problems. Okay years beats mine. I mean at least in germany. You know good for the world so let me ask you this when you look back at the technology that was either invented or perfected or acquired during ge's history. It's breathtaking to me. That one company did all that but in the last. Let's say thirty years. The innovations were much slower coming and it became more about selling off some things in quiring others that were often established so how did affirm. That was so innovative. Stop being so innovative. I would push back just a little bit. you know. We spend a lot of time on investing in technology and in the industries that we were in like aviation and health care energy we would be viewed both by patents filed by our customers and the markets is kind of the industry innovator so there was certainly part of my strategy. I would say the differences so much of the innovation today is driven by information technology data analytics and this is something we were trying to change. But and if you could rewind a lots of stuff over time the company would have made even bigger and more profound bats in those areas earlier. I know that you believed in invested in a software vision four g. e. to harness the customer and other data that's generated by your various machines. And that really didn't work. It did make me. Wonder is the era of that kind of conglomerate just over. Oh gosh. I think the era of somebody that does jet engines. Tv shows and insurance. That's over it's just you know. Investors don't want it. it's too hard to manage. I think being able to do a more tightly connected with aviation and power maybe health care. I think that's possible. And there's reasons to think that's going to endure if you think about the conglomerates. Today i'm talking about amazon and alphabet. They have a technical foundation. I would say. Ge had at least in the beginning of my career. our foundation was management practices. That that's unimportant. But that wasn't enduring really and i think when you look at it amazon dominant software company and in some way shape or form. Everything they do feed off that google was dominant. Ai company everything. They do feeds off that right. So i think if you wanna be a conglomerate today a technical foundation bust yeah but their core is built around technology that is also very scalable and very flexible whereas what you were doing still involved a lot of physical things with sunk costs spread all over the world and that just seems like a hard thing to do if you step back. I think what we saw. As our core competency was the global framework you know infrastructure equipment rotating equipment and then the digital context for how to optimize productivity drive safety and so we were a relevant player in one hundred fifty countries around the world because of the mix of businesses. That we have now doesn't mean they don't cycle you know aviation on nine. Eleven was the world's worst industry right and then for fifteen years it was awesome. It then with covid. It's the world's worst industry right. So i think you need to separate natural volatility from a company that was basically winning the businesses. We were at from a market share standpoint. But it wasn't because they were cycle free so you write about this incident back when you were running. Plastics most plastics. And you missed your annual earnings estimate by a lot fifty million dollars which was really something at the time and as you right jack welch. Ceo grab you at managers conference and said jeff. You had the worst year in the entire company. You're the worst person in the entire company but he didn't fire you and interestingly welsh when he was starting out at g. he blew the roof off a factor and he was expecting to be fired and he hadn't been so. I'm curious what that event did for you. How that set you up to keep succeeding. There you know stephen near death. Experiences are really good for you growing too many of them but being able to survive your own failure is part of life part of a business career. Nobody has a perfect career. And i didn't it also come eat it like i could live that. Basically he wasn't going to define how. I felt about myself so i told him look. I'm going to fix this and if you want to have the fire me. I'm going to quit so you became famous for hitting your numbers from there on out and really. The story of ge during that period was accompanied that hit its numbers and wall street loved it and the stock boomed because of it but the more mortems that are done on g especially in this book lights out to wall street journal reporters the more we find that a lot of those earnings were just pumped. You know inflated that there were a lot of different ways to reach your earnings targets including some really creative and aggressive accounting. That was going on across a lot of divisions at ge for many years. So i'm not expecting you to cop to any specifics or point any fingers but looking back wasn't that a counterproductive institutional practice. Well what i learned growing up and ge was how to be a good operator. How to invest in growth how to drive productivity how to manage cost. Those kinds of things interwoven in the story is always going to be. The growth of financial services and financial services is. Let's say historically just been more fluid because of the way reserves her done and things like that but even in like power where the way orders were booked and accounted for ahead of time and the way that. They're predicted against an unreasonable. Not realistic timeline. It just sounds as though there was a letter that was pronounced under welsh and continued under you. That led to a situation where you got back into a lot of corners. Is it not the case. So all the counting. Ge was bottoms up all of it. We paid external auditors. Hundreds of millions of dollars a year to review books. We had a twenty person disclosure committee. There was made up of mid level managers. That prove everything. We said everything we ever. Did we ready fitted by the fed for six years. I had to audit committee. Churns one was retired. Ceo of j. p. Morgan the other one was the retired. Commissioner of the sec. I know what's been written. Stephen but all i can tell you what we tried to do. So okay jeff you were a ge lifer at one point you are in a bake off to replace jack welsh. You're the youngest guy by quite a bit. Why did you win. I never feel. He's no because these are things you don't know i would say to a certain extent in a big company your peers promote you and not. The other guys didn't but i really good peer relationships at that time and i think that certainly helped so you reward is getting to replace. Jack welsh to fortune magazine. At named manager of the century. So tough warmup act and there's a storyteller in the book this encounter just before you'd been appointed to take over. This was at a dinner in london. Where a legendary british executives you call. Him says to welsh jack. How do you do it. How do you get a fifty p. e. let's price earnings ratio for the stock price. How do you get a fifty p with that baggage. You've got meaning. Ge and you rate how you are shocked that someone would say to his face. What surely other people were thinking. This was right before you get the big job. The big job is extremely desirable. Did that comment however make you wanna run just a tiny bit in the other direction you know everybody born with laughter when the guys said it and i realized that that what would that the joke is on me really strikes me as i read about the complicated history of ge during jack welch's ten yours that you needed to make a lot of decisions off and under time pressure in lake any human. That makes any decision. You often have incomplete information and the stakes are routinely very high. So i hate to say but the primary lesson. I took away from reading. Your book was don't be a ceo. It is frigging impossible. Let's say i would say you know. The last twenty years have just been filled. You know so. I i basically went to work. Let's say about eighty from one thousand eighty to two thousand eight never seen a terrorist event. That didn't even know what they were really. And then nine eleven happened in. Fukushima happens in the financial crisis and covid and so leaders today almost haven't seen any terrorist events so among other things he had some pretty bad timing. I mean look you become. Ceo just in time for nine eleven. Yeah i would say not only nine eleven but enron you were maybe the biggest trust me company and then you trip over into a world where there is no trust. That's a big change. Give me your thumbnail of getting settled that first year or two trying to figure out what the company actually was where it needed to go yet so the original thing was just get through nine eleven right we not only were big the aviation business but we were big in the aviation leasing business. We had an insurance product. Then it was just a panic calls and had to lend airlines money to keep them going. Let's say it's nine o'clock at night and it's a week or two after nine eleven and the capital guys say. We need to buy two billion dollars of american airlines. Wtc's by tomorrow morning and you know my question is what the episode not even know what the language or talking about making decisions like that was hard. I mean at least. It's good for the ge capital numbers right. We made some good loans but then we started whittling away on. How do we start reinvesting again in technology that can help the industrial business and we started planning a path of saying look all of our industrial businesses need to be retooled even nbc right. Even though the large term goal was to make g capital smaller but keep it but keep it. We had to let g couple of gopher while because we needed the cash. That decision we made was to try to do that. In the context of continue the grow earnings per share. Because it was the only line which investors understood and was that the kind of path dependence that welsh had set you on that you had to hit that dividend number. Look i mean. I just think it was. It's the kind of company you were. It was the kind of company we were looking at. It probably had a window to reset the company after nine eleven and not doing. It probably was a mistake. So i kept this on that path. It was started work than the financial crisis. Hit those people say. You should have seen the financial crisis coming. And i recognize that. Maybe there are things that that differently but none of us really saw that as a terrorist right so in cogan happened. My first reaction was we lived through sars. It wasn't that bad right. It turns out it was like a thousand times worse. You can make yourself prepared but you better be good. At volatility in his new book immelt writes about the immediate math of nine eleven and the double whammy the e. faced a huge hit too many of its core businesses as well as a huge drop in its stock price. I tried to stay calm. He writes but ge was getting crushed. I heard from several shareholders including our biggest one. We didn't realize. Ge was so big an insurance. I wanted to say never hidden it. Didn't you examine our holdings when you bought stock instead. I kept quiet. It is hard not to picture how jack welch might played things differently when welsh were ceo. The markets loved g stock in part because he made them love it by force of will. Stock markets are full of numbers. But those numbers are driven by stories and welsh sold the ged story enthusiastically and aggressively jeff. Immelt didn't hear again what he wrote about that shareholder call after nine eleven. Instead i kept quiet. The markets seem to punish him for that. That and the simple fact that jeff. Immelt wasn't jack welsh so by the time the global financial crisis. Ge looked a lot like a financial services company in hotseat after lehman. Brothers went bankrupt. I knew it presaged not just the beginning of a downcycle for ge but the destruction of our business model. I'm guessing a lot of people did not see that. That was the destruction of your business. Model not appreciating. How reliant big ge as you call it was on ge capital. Can you explain how our line we're how intertwined y you saw how bad this was going to be for you. We were what was called a wholesale funded finance company so basically we would borrow unsecured debt because we had industrial cash flow. And we were triple a. And then we could lend that money out at a higher rate and the difference between what we could borrow money for what we can lend money for created a very profitable finishing sentences. Company banks had deposits. We had some the pases but we were basically prohibited pre financial crisis from having deposits. Because we weren't a bank holding company so when lehman brothers went down it was really a missile into the unsecured debt market. More than anything else. We were kind of cloud damage if you will and we were big. We're a huge so the combination of our size plus the fact that we weren't funded by deposits was a real one two punch. This is a crisis that came you and waves. but then we're regulators went ultimately which is probably exactly what they should have done. Just really disadvantaged us was really bad for ge specifically it. Sounds like they're extremely. It was extremely bad. It was harder to grow. It was costly. It was a huge challenge. And it wasn't going to be like a month or two. There was no vaccine. Let's say it was going to be permanent. So you rate that after reading think it was the first draft of the dodd frank legislation which set forward some regulations for the finance and banking industries. You say you felt that. The federal government had pointed a cannon at ge specifically that they didn't want big financial institutions to also have an industrial arm. There may be a handful of others but it really was at us and basically the first draft said we were going to have to split off g capital from ge which at that moment in two thousand nine. We just had no way to even think about doing it. It was just hard to consider what we would have to do. So like i said. This crisis came in waves. This was another wave. So i'm sure tim geithner had good reason to suggest this. I'm sure it wasn't folly. Why do you think that you had been singled out. I don't know exactly tim. And i never had the conversation but my sense was they probably always had in mind of making us a fed regulated entity. I think they basically felt like for a financial institution to be as big as ge capital. It needed to be underfed regulation. So i think to a certain extent they may have looked at it in two steps. Not one step. But i don't know in september of two thousand and seven. This was a forty dollar stock and had the broad support of investors and analysts. And you know we're executing a strategy that seemed to be working and was appreciated by our customers on our team and our investors so never play victim. But i think that's just the fact but others saw the facts differently after the break. I know that there are people that feel like i let them down and think about every of my life and there's this now we shouldn't say that you single handedly got donald trump elected please. He's talk over there. That's coming up in a minute. Also please keep your ears open for the newest podcast to join the freakonomics radio network. It's called sadier. Breaks the internet featuring the columbia university sociologist. So dear vanish. He is also the author of gang leader for day. You can subscribe now to sue. Dear rakes the internet so dear s. u. d. h. i. r. You can hear preview now on any podcast app. In the first episode will be out freakonomics. Radio is sponsored by square. If you run a business or thinking about starting one swear has tools to help lake touch free hardware so you can take contactless payments at your counter or on the go and easy ways to get paid online like a free online store digital invoices and the tool that. Lets you charge. Credit cards with your web browser. Everything works together all from one place. See all the way square can help at square dot com slash go slash freakonomics that square dot com slash. Go slash freak nama ques. Just how devoted was jeff immelt to general electric. The company he led for sixteen years and worked at for more than thirty five. Consider the story of the meatball on his hip. The meatball is what ge employees call their famous circular logo. Yeah so ever daughter. She's thirty four now but when she was a teenager. I used to always say that. I was going to get a tattoo. And she would just say your dad. Big talk no action blah blah blah. So one day. I finally tom do it today. So i was in my office in fairfield on a saturday. That's fairfield connecticut. Where ge had moved to headquarters in the nineteen seventies. I google tattoo danbury. And because i wanted to be far enough away that maybe nobody would recognize me. Danbury is a little over twenty miles from fairfield and so i drove. the denver. connecticut went to a tattoo parlor. There's a woman tattoo artist. And i showed her that g meatball. I put my wife's initials on top of my daughter's initials on the bottom. She said doing this. I so i work at and i played a bowling league. Lost a bet. So this is what i have to. My daughter comes home like three hours later. And i showed her. She hits the she screams so sometimes for your dad you have to go that extra mile. Email plainly loved g and for a long time. It loved him back. The epilogue of the book. I mentioned earlier. Lights out is titled jeff is a friend when the authors thomas great and ted man interviewed in melts former co workers colleagues would routinely start off by saying jeff is a friend bud and then they lay into him all the bad things that happened on his watch. He did invest about one hundred. Seventy five billion dollars in acquisitions to grow the company's life sciences and alternative energy portfolios among others but there was another four hundred billion dollars of divestments as immelt sold off the storied plastics division. Major parts of ge capital and nbc universal. The thing is for a long time. Immelt felt his plan to streamline and reshape. the company was working but the markets weren't vying at one point. The activists investing from tryon partners took a big position in which earned them. Sit down with email in fairfield. They presented an eighty page white paper whose title beautifully summed up. Ge's dilemma transformation. But nobody cares. We were pivoting from you. Know fifty fifty financial dusko to more industrial. That's not something you do in a day or two week or two. That takes time. I'd like you to talk for just a second about when you were. Ceo your role as a defacto ambassador for american capitalism. Really at one point or another you interacted with many many heads of state. What did they typically want from you. And what did you want from them. The first thing is i was trying to maintain good relationships with all the administrations and the secretary of state. And things like that. So i never was just freelancing. I always tried to understand. Here's what the us interests are so. I could meet with ambassadors and things like that so that's number one. I think if you wanna be a global company you have to know how to make money in a country and you have to know how to make money for country so you have to be able to say things like. Hey i want to sell you a jet engine your highness but i'm also creating two hundred jobs so let's talk a little bit about politics or at least the interface of a company like yours and an administration keeping in mind you know. The financial crisis happening the end of the bush to era and the beginning of obama's first term in an interview. You did with sixty minutes around this time. You write that leslie stall heads said that most americans see big corporations is greedy and selfish and you pushed back. You said everybody. In germany roots for siemens everybody in japan routes for toshiba. I want you to root for me. So does america in your view or at least a significant portion america just not lake capitalism. Oh kosh so. I'd say first of all we had built our company to win around the world and we were either the first or second largest export. Or after boeing right so exporting creates incredible jobs that you know for every job there would be eight in the supply chain. So it created lots of competitiveness for the country. And the point i was trying to make with leslie. Was you know exporting as a way to make a strong country it's hard. It's harder than almost anything else and you shouldn't criticize us for that. I lived in a generation. Let's say from roughly one thousand nine hundred. Twenty twenty where the wave of productivity hit hard information technology and certainly in the early parts of that time shutting down factories in the us and moving them to mexico or doing back rooms in india or things. Like that i think everybody viewed that as a common business practice and that you know anything we can do to be competitive and guess what that didn't work that wasn't sustainable long-term and it's hard to portray yourself as a great citizen while that's happening earlier in the administration as part of the recovery from the great recession. The president asked you to chair the council on jobs and competitiveness. And you rate that you were really impressed with obama's intellect but as you ray. Obama didn't quote empathize with the business community. I'm curious what do you think were the biggest ramifications of that maybe up to and including the election of president trump a few years later i would say president ball saw the job of the president of creating jobs and whoever could help him create jobs in the. Us was a friend and whoever didn't was not a friend and things like tax repatriation he viewed that as whining from companies in terms of tax repatriation or the lack of repatriation. Keeping money. Out of the hands of tax collectors. Weird g. rank among the offenders. We were on that list for sure. By the time i retired. Seventy percent of our revenue was outside the united states and so people that made money around the world like from the target list for sure says. Suffice it to say that for a company that many people still think of as a be a powerful rich american company. You weren't contributing to tax coffers as much as that person might realize exactly because we were big outside the us. The one thing i would say is an exercise that everybody do is to go to any town on interview. Twenty-five small medium business people because we always say we love them but i think both parties out of the way to make their lives miserable in different directions. Yes in different directions. Tell me the ways in which each party does that. I would say on the democratic side regulations for sure and certainly the more recent republican party just volatility volatility around globalization and different. Things like that when people ask me i said go create your own index of small meeting business people and figure out what their lives are like and if there are healthcare costs are going up fifty percent a year. It doesn't matter what the president saying about. You know how good a policies working they don't like it now we should say that you single handedly got. Donald trump elected the first time. Please please. don't go there well. Maybe not single-handedly but for those who don't recall the connection you know. Ge owned nbc universal at the time which aired the reality show the apprentice without which donald trump probably wouldn't have become even close to president. I mean clearly. The apprentice a platform for him. But nobody when we're doing. The apprentice ever said there goes the president united states. Funny i don't think anybody ever said that. Now you i understand are on record as a republican did you vote for him once or maybe twice. No i never voted for no you romney republican so there's twelve of us left. Can you assess however some of the things he did from a business community perspective as president. That were beneficial. Oh so. I'd be very clear that i don't want to in any way. Make a comment about supporting. What's happened the last six months or year. Really i i will say i believe in less regulation. I believe that everybody should help. Small and medium-sized business and that's tended to be the way i've thought about politics but i just think nobody myself included support. What's taken place over the last six months all right so let me. Just get back to the large picture there. Two main stories that g. observers tell about the downfall of ge as we knew it one is that jack. Welsh propped up the share price by and bs and by you know browbeating his direct reports into generating profits even if those profits were only on paper and that he therefore left the company behind that was in decline or disarray. Which you jeff as incoming. Ceo tried to modernize and globalize. That's one story the other stories that you inherited a great if slightly graying company and tried to remake in your image and wound up destroying with a series of bad acquisitions and bad decisions. Now whichever story people tell the ending is always the same which is bad. So what's your version. Look i guess. I would just say two things. You know the results of the company. Over the time i was there. We were number one in the industry is we were in. We set up a global foundation way ahead of others other people. That have adopted the initiatives that we started. Have one big right. So that's one piece. The other piece of cleared didn't in the way i wanted to. I think markets were tougher. The tale of g capital was longer and more volatile than we recognized the people that i put in place at cheap power. Didn't do as good a job as they should have. And we had too much going on for the board. And i own that. I'm a lot others kind plot. How they want to put that. But those are the two pieces. I'd give you so jeff. You wound up stepping down as ceo a few months earlier than expected. Why'd you do that. And what were those last month's lake. Oh cash the answer to your first question is that we all felt. It was probably in the best interests of the company. I guess one thing. I'd like people to know and i know not everybody would give me the benefit of doubt as i really loved the company. I love the people. And i always try to do the best for them. What were the last month like they were excruciatingly sad. This was my life in. It wasn't going to turn out the way. I wanted it to. And i felt like i let people down and that made me really sad so after you left. Things got much worse for the company. The share prices dropped much much more. There's been a a pretty unbelievable really dismantling of the conglomerate and doj an sec investigations into improper accounting including during your tenure. Are you concerned about civil or criminal charges against you personally again i. I'll let that stand on. Its own. I would just go back to what i described to earlier which is to say. We bent over backwards to do it right. We had detailed transparency with our board. We had the best auditors that money could buy. We had a multitude of relief valves and reviews and things like that so you know we tried our best to get all those things right. I m curious. What do you say to the longtime shareholder. You know if it's a retiree if it's a former g. employees themselves who watch the stock price just get pummeled with. I were to corner you at the grocery store and say you know you kinda screwed up my retirement. What do you do with that. Even look i say. I don't blame you for the way you feel. Here's what we tried to do. Here are the actual results of cash flow generated dividends paid and earnings generated and market position. And i try to point out the context of what actually happened. And i end by saying i had every penny not that. This is great constellation. But i never sold a share of stock. I had every penny of my 401k and she stock. I was always in it with everybody else. Okay but you had a lot more pennies. No i'm saying it's not. It doesn't give people but i i always start by saying look. I understand the way you feel. I really do. But here's what we tried to do you still own summer all ge's stock. I sold a lot of cheese stock. And i just bought some recently. I don't mean to put you on a couch here. But i'm curious you sound conscientious enough and self aware enough that i'm guessing you feel a lot of guilt you know. Year career ended poorly but it was a very good career for which you are obviously paid very very well and then the company is in bad shape now. Is that a feeling of guilt. When you talk about looking back i just. I don't want to put a word on it. I'll let other people say. I i don't hide and you know i'm going to try to continue to make contributions as best. I can't these days. Jeff immelt splits time. Between coastal south carolina coastal northern california. He teaches leadership class at stanford. And he's a partner in the venture capital firm called new enterprise associates where he focuses on technology and healthcare so at the beginning of your new book. Hotseat you write about the inspiration for the book you're doing. Qna with the leadership class that you teach at stanford and this was right after fortune magazine published a piece called. What the hell happened to ge and it mostly argued you know i hate to say it to your face but it mostly argued. That jeff immel is what happened. Dingy was a very critical piece of one of your students. Asked you about the article and you said i know some feel that i've let them down and that will weigh on me for the rest of my life so i'm curious. What does that feel like. How much does it weigh on you now. A couple of years out. Oh gosh there's not a day that i don't think about it and that's despite the fact that you know i love what i do now. I'm very happy i have friends. I have a professional career. That i enjoy of a family that i love. But there's not one day that goes by that. I don't sit back and say i wish the stock price were was. I wish people weren't writing those things. I wish i'd done certain things differently. And i think that everyday i live. I'll have those moments. You know every job looks easy to. You're the one doing it. Your podcast listeners. Should keep that in mind. Jeff immelt book co written by journalist. Amy wallace is called hot seat. That is our show for today. We'll be back next week until then take care of yourself and if you can someone else to freakonomics radio is produced by stitcher and bud radio we can be reached at radio at freakonomics dot com. This episode was produced by mail. To duke or staff also includes alison. Craig blow mark. Mccloskey greg rippin zach. Lipinski matt hickey and tyrrell get help this week from jasmine clinger. Our theme song is mr fortune. By the hitchhiker's all the other music was composed by lewis. Scare the complete of freakonomics radio. More than four hundred episodes is now available on all podcast apps and you can also hear on many. Npr stations across the country as always. Thanks for listening Others should be plenty of this podcast. They could get me massacre so maybe at this fist. Ooh stitcher he. Stephen w again one more thing if you lake freakonomics radio. I think you'll also like the latest episode of people. I mostly admire the podcast hosted by my freakonomics co author. Steve lebanon. here's what it sounds like. Guess tim harford has an uncanny gift for making economics interesting his first book the undercover economist came over fifteen years ago and still the first book. I recommend to anyone who asked me for advice about what to read. That's people i mostly admire. You can find on your favorite podcast app.

Jeff immelt ge immelt jack welsh Immelt jeff schenectady ge capital ameritrade john flannery larry culp
The Porn Reboot Podcast Episode 234: Don't Get Diagnosed

The Porn Reboot Podcast

29:05 min | 6 months ago

The Porn Reboot Podcast Episode 234: Don't Get Diagnosed

"Welcome to porn reboot podcast where you get practical tips gaining control over your porn or sex addiction. We help ambitious men. And they're out of control sexual behavior with pornography sex and masturbation so that you can maximize your life perform at your potential and remain in control in the driver seat. Which is where you have to be in order to gain contain the success. You want in life. i'm your host. Jk amaze he said if had sex and porn addiction recovery coach. Welcome to the episode. Today we're going to be talking about men who probably should not get a diagnosis from a therapist or a psychiatrist. The reason that i am bringing this up is because we live in a culture where people identify with what they are. So people identify with dysfunctions they identify with. Add adhd. i am dyslexic. I'm this i'm that and there's nothing wrong with any of them. But i also believe that. We live in a culture of over diagnosis. I was reading a study the other day which stated that when it comes to repressed childhood trauma that individuals who believe in the concept of repressed childhood trauma are more likely to find repressed childhood trauma and they actually speak to a therapist but individuals. Who don't believe that at all as a concept when they speak to therapist they don't find any repressed childhood trauma again. I'm not saying that. The people who have repressed childhood trauma who never find out what it is. I'm just saying that. We are various adjustable to certain things based on the culture that we are raised in the movies. We watch the books that we read the things that we see in different magazines. What we hear from our friends and relatives and so on and this particular episode is directed at the highly driven ambitious high performing men. Men who already know who at the very least suspect that their success in different areas of their life is driven by some of their issues. And i'm going to be sharing a few of the things that i've learned over my now. Going into ten years of coaching meant freedom from the sexual compulsive behaviors. I've observed a lot of different men. And i've worked with many men who are successful and many men who were successful and i've seen men who got certain diagnoses. Who lost almost everything that they had and it was very troubling to see this happen early on in my career. I truly didn't understand it. I thought it had something to do with their addiction. As go my god like seems to me like the whole life is falling apart because it was built on a foundation of this addiction. Well that wasn't quite the case. It turns out that for some men who have a compulsive behavior certain personality traits could be related to it but one of the ways that many therapists treat men who are addicted to pornography particularly men who highly successful involves challenging the very foundation of. What makes you who you are even if it has nothing to do with your out of control sexual behavior. Think of it as a contractor trying to improve on a very old historic building right. And they have this contractors broaden and they're an expert at these big buildings that have existed for many years and over centuries different things were added onto this building and they want to make some changes. They'll like you before. We make any big changes his building. We need to examine the foundation of this building and they go into the foundation and they go like oh my god. They are so many things wrong with it. All right you know the best way for us to do this. Is you know we're going to have to just start ripping out different pieces of the foundation. We're going to start making different adjustments. We're going to have to take away. Certain parts of the building and add new parts. The problem that is these were not the same individuals who built that building on. This may not even be the best analogy. That i'm using but bear with me. You get the idea. They're not the people who originally built it. They may not truly understand why people built things a certain way then. They may not understand that they didn't have certain technology asserts an understanding of construction so they did things in a way that seemed a little bit shoddy but at the end of the day. Got the work done because the building had stood the test of time so far till now it needs help and i quit. That's you men. Who have had certain things happen in your life right. Maybe they grew up with experienced some sort of trauma when they were young or they experienced some sort of insecurity or there was some sort of chaotic events that happened in july for a chaotic period of time which forced them to build up. So it's characteristics. Right like the charisma. The competitive nature their confidence. A work ethic be independent. The passion the perfectionism there taking data. Nasty the vision that they have so all these different character traits that i see in my high performing highly successful clients. I rarely see it being something that they were born with it. In fact for the men who are struggling widow of control sexual behavior it was usually born out of adversity and the problem with that adversity. Today is that the moment. It is diagnosed. You are told that you have to do certain things to change that that you need treatment for that in some cases that you even need medication and one of the reasons why a lot of driven successful individuals do not work with therapists is because they realize that this is either going to happen. It has happened in the past. They suspected well and one thing that is not spoken about often is the driven successful. Individual is sitting in front of this therapist man or woman who is telling them like yeah. This is the diagnosis. This is what the deal is and this is what you should do about. It and the therapists may not understand what this person is thinking. This person is looking at the therapists. Then select well. That's all well and good. This is your area of expertise. But you don't have any of the things that i'm working so hard to acquire. I don't see you taking risk. Not therapist might be taking risks. Therapists may have all of this but this is from the perspective of the client. I don't see you taking risks. I don't see you as being a person of a big vision here in your small office right. I don't even think you're really passionate about this. Because you have to other clients after this. I noticed you looking at the time twice in the past hour particularly confident. You seem a little bit intimidated by me. I don't know if you have any work ethic. You're certainly not charismatic. And so they're not thinking there's literally but these thoughts that are passing through the filter of this individual's mind and they're looking at all those things until like you know what no. I'm not going to do all these things because i don't have the confidence that i'm going to not lose everything that i've worked so hard to build up over the years you can't look media and tell me that hey you're going to have all the things you have right now. You're not going to be any less charismatic. You're not going to be any less. Confidence is still going to be a person who takes risks. You're going to be s tenaciousness. You've always been you're going to have this big vision right now. Of course that can be taken to an extreme. The negative part of that is that that's an individual is struggling with some sort of drug addiction and they feel that this drug is something that makes them charismatic. Let's say alcohol. They're feeling the same way looking at therapist. And it's the therapist job. I believe anyway to show them through asking certain questions that hey you have a problem and you have a wrong belief about this and to show them that you could still be charismatic without this however when it comes to certain deeper personality traits that are not connected to a substance. It's a lot more challenging to show of successful high-performing individual that. Hey you're still going to have this now. I was never comfortable with telling an individual that they would have to change certain aspects of themselves. I think one of the best things that happen to me naturally was that i became ambitious and driven in the process of controlling my sexual behavior and that is the reason why i work with the type of men i work with because they know i understand where they're coming from but they also now believe that it is possible for them to control the behavior without losing certain things. Of course there will be the rare client who is just not willing to let go of certain things and in many of those cases i told them like. It's okay you don't need to change many of the things that make you who you are. And this isn't something that i've just noticed among my clients it's something that we can also see in the outside world if you are one of the type of people who takes an interest in people's personality traits so on the rare occasions when i watched the news or hear about somebody who is a change maker or leader of industry. I'm not particularly interested in their accomplishments. Like most people are like. Oh this person is the richest person this. I'm very interested in their personality. I'm very interested in how they became the way they are. And it's surprising. The number of these individuals not all of them but many of them who are narcissists and they have narcissistic personality traits. Which make them who they are. People like bill gates. People like jack welsh right. These are individuals who they win and when they win they win big right. They create these huge visions to change the world. They are bold. they are risk-takers. they act independently. Don't need anybody to tell them what to think what to create right. And the to pursue their visions with great passion would perseverance over a long period of time and as human beings. Those are the leaders that we need. These are the leaders. We look up to to take us to places where we have never been before to change the world but they're not doing it from compassionate place to doing it because they have a personality type which and another person who was not accomplishing. Those things would be seen as evil antarctic right many times. We don't know what's happening in these individuals lives. The only glanced into it. We have is maybe a string of failed relationships or divorces. That's about all we see but we don't really get to see behind the curtain on the other hand you know all assets so to speak that make an individual successful in different areas of their life. They also come. With huge liabilities become very negative traits. Now for speaking specifically about narcissism which is very common in driven high performing successful men who struggle with sexually compulsive behavior. We notice things like they. Don't listen to other people. They have a tendency to exaggerate a lot. They are overly sensitive to criticism. They are out of control with certain emotions. The overly paranoid they may have grandiose view of themselves and the things that they want to do. And you see as you can see this in our now ex president. Donald trump right all these character traits. They are negative but at the same time. It doesn't stop them from accomplishing certain things. Now while you may not play on the same stage as donald trump or an elon. Musk or jeff bezos or bill gates or any of these individuals and are not saying that all of them are narcissistic. I'm just saying that. Many of these individuals on that level display narcissistic traits when exhibited by a regular person would be seen as a very very toxic. But while we don't act on that stage we have our own responsibilities some of you on businesses. Some of you have different things to prove some of you have families that you need to support somebody if you're supporting extended families so if you have obligations that need to be fulfilled and only way. You were able to become a person who is competent enough to do that. Was that you had to overcome a lot. You had to overcome insecurities you had to overcome issues from your childhood. You may have had to overcome an inferiority complex much had to be done you know when it comes to something like trauma you find that individuals who have been a victim of dramatic incidences in their past. Usually childhood will often try to regain control of that dramatic incidents by acting it out right. So for instance a woman who was sexually abused might decide that she's going to be a stripper because she safe when she's up there on the stage and she can dance and she can have sexual power over these individuals right. The same thing goes for a man who for many many years. And i went through this myself. Who for many years felt like he was not attractive that he didn't have any control over the women that he could be with. People told him that he wasn't attractive that he was slow. And all these different things and in my case set a certain point in my life. I try to regain control of that narrative that i didn't have any of those things. I went out to prove to myself that i could do. These things and i did many men do that. Unfortunately many men also start doing it compulsively because they never address what originally happened. They never acknowledge that. Hey the reason that i'm doing this is because i never believed let's say for instance the reason why i'm going out and meeting up these different women and having sex with them in dating them. They don't acknowledge that it's because they feel like they missed out. That people told them that they couldn't have this and it couldn't have that and they were attractive enough and that's why they're doing it and that's how that becomes a compulsive behavior. There's no end in sight to that. The same applies to every one of those characteristics that i mentioned to charisma to being competitive to being confident to working very hard to to be a perfect person to being a risk taker and i think the morvern mental health systems just have a little bit of an obsession with not just diagnosing but quote unquote treating all of these things. Why are you so confident. Why do you work eighty hours a week right. Why do you have these big visions. That's grandiose you shouldn't do that. Why are you a risk taker right. Why do you insist on doing things perfectly. Each of them have their pros and cons. Some of them are connected to your out of control behavior while some of them are not but understand that our world is not a perfect world. The men who bill things and create things in this world and make things move forward. They were not perfect men. The same goes for the women not leaving out the women for any specific reason goes the same wages that this podcast that is listened to by mostly men and life. You may have used your insecurity as fuel and i want you to know that there is nothing wrong with that because often. There was no other way that you could have accomplished that. I want to briefly. Say that i've also seen very successful individuals who bought into either the religion off recovery bought into the idea that there was something and this is why. Aw man guys those of you who are always searching for the root cause. Do you really want to find a root cause. Are you ready to find the root cause like some people really feel it. Oh my god i'm broken. The must be something else that is causing me to act out in this way but did you question where the idea of a root cause came from. When was that idea planted in your head. People love to. Oh god if i can find the root cause it's going to change everything. Yeah it might change everything. But what if you become one of those men who come to me who was doing quite well in life and then now red flags go up when i speak to men like this deal like yeah. Jk so i'm working with different type of therapists. I'm doing this type of therapy. I'm death type of therapy. I'm doing this immersive experience. That i'm gonna take mushrooms and then i'm gonna do this. Go on this other psychedelic trip and doing all these things and under surface. It's like you're a seeker. You're looking for something you're trying to find meaning in your out of control behavior but if you're trying to find meaning to your out of control behavior i feel that you're skipping the hard steps. What are the heart steps. Actually understanding what is happening biologically. I was doing the same thing. I was meditating deeply feeling that i would discover something deep within me. That would change that. And i know that as possible. It has helped. It helps many people but that really isn't what. Got me to the point where i could control my behavior. It was understanding my behavior how it happened. Biologically and putting in the work step by step through a system to build up certain skills to learn different coping strategies and the easy ways to just go for the root cause right so these clients of mine. Their businesses their careers. Their relationship started falling apart. Suddenly they were saying that. Oh my wife is bringing up issues from the past. They weren't an issue for years but suddenly she's bringing that up all right. I feel like i'm losing clients. My business is struggling. My employees are leaving and they're not able to really see what's happening and at the same time they always feel like they're in a crises and they always feel like danan crises because they have been speaking to someone of people who are uncovering different things and labeling it for them oh this came up from your pass are there was all kinds of stuff. That happened there in your past. That was terrible right or this other thing came up from your past and that means that you are this and to give you a label and none of these labels come with anything positive. You have to look for the positive right if you're dyslexic or if you have. Adhd you're not going to see positive things lying all over the internet you just gonna find forms of people just complaining and finding different ways to manage it. You have to go looking for the book by the ceo. Who says that. Oh you know adhd really good thing for you. Here's how it helped me and then you have to learn that but you got diagnosed in the first place. That is where the problem lies. There are things that happened to me and that happens whether men and i hear the guys tell me about it that the same thing happened to them. In their childhood and in many cases the response they had wasn't that bad. It just wasn't a bad response. And example was that my dad walked me like he would beat me with a belt with his hands with a pipe. Anything he could get his hands on. And i love him i really do. I have literally no regret that he beat me. Like there's just no regrets talk when it happened to me as a child. Yeah i wasn't. Pleasant was scary and terrifying. Yeah it was scary and terrifying. But at the same time if he didn't beat me when i gave him lip when i talk back at him when i to do all these crazy things that kids and teenagers do i might have turned out completely different. My situation might have been much worse right. Those are things that i can laugh about now. An i'll often come across clients who've had the similar experience parents who wiped them but the way they frame it is completely different right. They frame it as just so. I'm being clear about this. I'm not just taking the clients story that they tell me. I'm asking deep questions. Over a period of time do understand to the fullest extent. What really happened. So those are the examples that amusing right. Now it's not just like oh you were beaten to know that so many factors like how long did it happen for. Was your father drunk when he did it. Did he do it out of love. Was there a lesson to it or is there no rhyme and reason was he taking out his anger and frustration on you. Was he an addict himself. All these questions are asks. Okay just putting a disclaimer there. But the way that men who have had a similar experience to mine frame it differs it differs based on things like culture it differs also and more importantly based on therapy and diagnoses. There men who were absolutely fine with it and they saw it as like. It's not a problem till some therapist told them that. Hey you were physically abused as a child like personally. I don't view my dad beating me with his belt as physical abuse. I framed it as discipline and that was something that happened to my cousins. My neighbors my friends we talked about it. We laugh about it as adults. And i think that also helps. That's a human way a community based way of dealing with issues like this right when it's something that happens to everybody we feel. It's okay when you were in a culture where a certain part of that culture is dedicated to making that something negative and i'm not saying it's positive or negative if you feel like it was a bad thing. It's about thing we're not here to argue about it. We all refrain things in different ways. But i'm specifically speaking about is the men who were fine with it until somebody put a label on it and it happens in different ways as well a man who is insecure and he's insecure about how he looks so he's a skinny guy. He got bullied. He feels like he can't get with women. This is a very common one so he starts hitting the gym. He starts putting on muscle he starts dressing well and taken care of the way he and different things. I have heard people literally tell men like that. They are narcissistic professionals like. Oh yeah he's a he's a narcissist. He's an individual who is driven by an insecurity. Does he need the muscles this. He needs address well as he need to look that good the grand scheme of things no but he also knows that but because the thing that drives him is a debilitating thing and other people because insecurity for him as something that he uses in a positive way but in another person it's completely debilitating a can't go to jam and they won't go to the gym and they won't take care of the way they look. The blanket statement is that it's a negative thing and it's best that you get rid of it so to summarize gentlemen whatever it is that is driving you not driving your addiction. Let us be clear that what drives you could also be driving your addiction. If that is the case you have to separate it many times. We can help you with that. In the porn reboot system if you're working with a recommended therapist but for those of you who are being driven by something that the rest of society or other professionals say is negative or is bad or as undesirable. I want you to know that if you suspect that you do not have to get diagnosed if you that it is going to risk what you have right now. If you feel that it's going to risk your marriage if you feel that it's going to risk your career if you feel that it's going to risk your happiness. Perhaps in the future and again i've had many clients who've done this as well. You've accomplished a certain goal. Not an ideal specific goal. And you're in a more comfortable place. Maybe financially maybe here in a more secure place in a relationship even though at the end of the day securities illusion and so on and so forth. But do you feel that way. That's what's important then. You can stock diving into that. We've had clients who joined us and started working with us when they became financially independent. I've literally had people say jacob watching youtube videos. I've been reading blogs for years. And i was still in college. I'm five years out of college. I'm established as an attorney. I run a successful business. I've set up some investments. Done some certain things. I have some control over my behavior. But i know they're still some issues that are driving me and i just wasn't ready to hit pause on certain parts of my life. Not their addiction. Just certain character traits that they were willing to risk and now i'm ready to do it. And they find that they're much more comfortable place to start taking care of that. I'm jay your brother in this struggle. Thank you so for listening to this. Episode of the porn reboot podcast. I'll speak to you later on in the week. If you found this episode helpful hero. Awful ways. I can help you with your out of control sexual behavior for free. The first way is to grab a free copy of my book. Confessions of a porn addict. Seventy hundreds of born free at elevated recovery dot. Org visit the link in the description below this episode. The second way is if you're not sure where to start. But you'd like to learn more about my team and i if you'd like to spend time with like minded professionals and business owners who are controlling their behavior. Then join our free and confidential group. The porn reboot group on facebook. There's a link to join into description below this episode. The third way is if you need help now because you have burning issue your behavior with pornography is hurting you mentally or emotionally. You're about to lose your relationship. You want to live up to your potential be an authentic man and free yourself from shame guilt and underachieving and click on the link in the description below this episode. That says freebie coaching call and the fourth way is the leave us a five star review. If you enjoy this podcast so that we can reach more men who are struggling in silence and bring back the lessons. We learn from coaching them to freedom.

jack welsh Donald trump bill gates adhd trauma jeff bezos danan Musk jacob youtube jay facebook
AI is Coming | Getting More Women Into Artificial Intelligence

getWITit | Women in Technology

52:31 min | 11 months ago

AI is Coming | Getting More Women Into Artificial Intelligence

"Welcome to the get whip podcast I will be your host Elizabeth. This podcast will focus on the decline of women in technology and how our grass roots organization works with the Community to foster relationships in reducing the gap of women and. We'll be talking with both men and women and how to continue to move the needle forward on those relationships. For more information. Please check US out at get with it. Dot Org. Okay welcome to another edition of yet would've had cast. Say with us. Is Jennifer Bonin. Take winning. Better. Jennifer has really really cool company that she CEO and Co founder up. But before we get there, we got to know the back story. Yeah. Start with the back story. and. We're not talking like when you were born but maybe I could tell you my first business at five, but you know that lemonade stand really took off. It's super funny. I said this the other day I was like I wish that there would have been the same programs that we're working on right now. For US entrepreneurs when I was little because I actually had the first time sept of like once upon a child or that you recycle. Like when I was five. So no one had it then and I was like recycling toys in my neighborhood where I would take toys in the kids didn't want to get tickets and then they could get new toy. That they wanted and we would switch out. Wow at five years old at five. Yeah. I was trading higher to a recycling business. Oh, my new I knew I'd do entrepreneurship at some point but inserted really little of my. Get calls frequently from neighborhood parents like your kid to kids toys like don't know what Your Business in. It's legit. We started signing waivers really early on our very ago. Even your parents got involved he barely please send waiver if your child wants to participate. Were open to encourage Inyo yeah. They were very open. Most parents would be like, don't do this. And Mine are very not they're not. They'll tell you. They'll be the first people to tell you. They're not business people. Betrayed my mom's nurse. She's actually a nurse on a Kobe unit right now she's like frontline on all this in my dad is a teacher in. So both of them were very encouraging but they're like we don't know how to do. This will encourage you but we don't really know why you're doing my they were pretty sure it was switched at birth in the hospital. I was someone else's child away like these little red power suits all the time when I was about. I picked him out at the store and no idea. So they were like you're just born this way. We didn't make this way this to you on. We're just going to like help you be you. Encourage the grout on my head Sivigny yeah like was about helped me but I did funny enough I started my career and consulting. So my work center so anyone back is old as i. am knows there used to be St Charles which was a camp they could send you to Post College hang out with other folks that we're going to work for accenture in you basically was boot camp and even though they offered you a job at the end of that campaign, you didn't pass the test your job was done. Oh Yeah it was pretty intense. Oh, I did that for a while and ended up taking on on different director level jobs in technology companies. Running teams, building teams, doing all of that got some mentorship under one of Jack Welsh is old executives that he taught that upper out philosophy. So an learned upper out really quick. Either you're moving up or you need to go leave and work so and were things that I. Shit or get off the pot kind of totally that was totally nine learn that firsthand from why the people he talked to. Interesting and eventually went to her for Oracle and was. A great experience and. Figured, out that it was probably time to do my own thing and I felt like I was finally at a point where I had learned enough to be stable enough and my own to create a company or an organization without meaning to lean on other people in a bigger corporation share. And that is yes, the a APP store. So we created this weekly, the name of it cracks up because I love it. Yeah. So we we originally so we that's the funny part of this. So on P. Client, we came up with Anna about a year ago we came up with this concept and then just recently has served pivoting to the. Source of people know what it does. What we always wanted to be though the reason for the low going the way it looks the way it does. Is, because we wanted technology to, we know is going to be the next industrial revolution. All of us whether we get it or not. Now it's important but what we wanted was. Something that showed how important a I was a softer kind of side of it. You're not afraid of it like if a he by in walks up to you, it's very different a real lion. So we were like, let's make it seems less threatening approachable We did that and then pivoted on. actually. Sold the pink line name in March, and now we're the APP store. But see concept applies we wanNA bring a to the world's and. Get it out there for everyone. So it's usable in it makes sense. A lot of what we did to start with I mentioned a background in tech but what I want to do is start with social impact at our core. So really focusing on on how do we do things that give back in the world in how do we create a technology company that people actually trust that we're not manipulating your data or selling it to people at the black market or you know rather than? An and we really focused on higher. We do that especially now during Kobe with with the roads going through. So we really pivoted our verticals that were working to companies that have Impact there are. One of the programs were working on now with you. So you thought to preneurs creating a platform to engage them across the globe so. That they can work on things they're passionate about. So there is a group of youth here in Minnesota 'cause we have Mayo Clinic in our backyard WHO's working on a project called Humid and we're infusing a into you mad, which is basically the. Hospital's future. So where? More robotics automation in some of the things like. Delivery of medication and stuff like that through robots and other mechanisms you're working with now on Matt and we're working. Another used on sea level an eleven year old CEO. On a APP that's Ar Vr for veterans. So to help them win he tst on wall into the world. So these youth I'm Tanya either they're super smarten I spent timeless. Text us in the world I love spending time with these kids are just so creative and you know so much fun to help them reach their passion and you have kids I do I have two of them while how old are they? I have a four year old little boy and my daughter will be ten. This monkeys track timing copen I've noticed. The might relate. Right years. Still right and keeping a do over. Yeah. Yeah. I'm ready I think twenty twenty had of virus we should reboot and try. Just call it yet restart just reset go back. Saw The best movement said you know what we're done just let it be Christmas Seattle. Forgive head either reboot or skip ahead. We got something different. But yeah, I'm with you on this one. It's so you have a ten year old little girl I do on she actually came up with the concept for. You Kit, sometimes in you have children too. So you notice like they teach us things are different ways that we don't always see it. She was the one that really pushed me to work on a project I'm working on now, which is a children's book series on Ai. So it'll take. Wow Nadal teach kids about machine learning AI survey, understand it, and then they can teach their parents that's hitting her light on understand that right that's where really right like. The Milky appearance here's how this works. But it was her idea. Sir, she wrote me a story one bay about. The the Lions called Gracie grace. So my daughter's name is grace. My son's name Grayson. So she said, Greasy. Gray is the lion in Gracie grace best friend is a bought so like robot. Artificial intelligence. And they go on adventures together and she had different adventures. She wanted them to go on while my turn about how things worked in the world. So imagine going to a self driving car, they see the parts that are using a and how worked. So they'll go on these adventures together and teach kids the components of what makes up algorithms, machine learning I in a way that will make sense to the kiss he should get those published. Yeah we're working on right now. And teach them things even like One of the ones she came up with was the idea of how we all celebrate different holidays in how different is okay and then when you actually search on the Internet, different people have different holidays that they to in just creating inclusivity of information at getting more. Asian than what you're exposed you, the IT helps us deaths definitely. Yeah. That was great. Yeah for her at ten years old change in the world's yeah we hope. So that's what she's working on a meanwhile I was in the car the other day someone asked me once an being an entrepreneur and running a business is it rub off on your kids and I said, well, I, think it does cause in the car the other day they were sitting in the back seat and sheeps lane to my four year old that she just wanted him to send her the dividend checks from the companies that she was going. She was gonna live on a farm do art do all these fabulous things she was Grayson. You run the company and then just send me my diffident. You're. Really. This. Already planted at. Their future is really choose outsourcing. She's like you're going to run at optus you know I'll do what I need to do. You can run the company just the checks. Well, there you go a woman after my own heart to send me the money I just care about it. Should meet the checks I'll be good. Money. Awesome well good for her I. Hope she continues his. You know that's a lots of. Women get into it in the nave fallout because of culture atmosphere or not the encouragement so. Hopefully she stays on it nine. Oh Yeah and we need her to teach us ai because I don't understand it. Knew. That's what I'm excited about like as soon as she does, she's like I said she does the illustration she's very artistic. Super Creative, and so she illustrated the hoping for me and came up with it the idea on trips, and then we just looper achieve those. That's fantastic. That is fantastic while by the time this was released, this will already be announced but Yael, I will have to connect with you because I'm building on mobile APP, we will have to showcase her on the mobile application. A Super Kate we're doing featured spots for women and we'll just have a young woman features. You said, she'll be eleven next month. So she'll be eleven at this time. So yeah exactly. Young Future of the world taker over Yup. Exactly. Already. Delegating she super good. Great Betsy skill you have to have in this world is delegation that. Occurs that she's thirty delegating your brother on tasking needs to do in how to do it. That's great. That's great. Irate. Go into what companies do you work with I'm with a lot of different ones right now we're focused very much on on not for profit or nonprofit companies that just need a platform that'll drive real adoptions. Besides youth entrepreneurs rebuilding the platform for we're working with organization global minded, and what we're doing is I end a college student. So folks whose parents didn't have an opportunity to go to college. Education working with them to out, rhythmically connect them to jobs in opportunities and internships. So the one good thing about Cova denied scene is companies who traditionally were stuck in the mindset of you can't work remote. You need everyone else in space are really having to get out of that old mindset adapt newer strategies, which is great is happening faster than I think we would have ever seen it without us. And one of those things we can do is connect them to more populations of students. So getting more difference in socioeconomic background of the folks they're bringing in different geographical backgrounds where they live where they've been raised, you know different backgrounds in terms of their cultures and what they're used to. So bringing this to companies that really want that diversity but haven't figured out how to tap into those universities replaces so. This APP is like It over-simplified only talking like the United Nations but it really what it is is it's e harmony matching platform for students to match their interest to internships or jobs or opportunities because if we all remember two, thousand eight, which I do the financial crisis that ensued then on young people got really hurt. New. People coming out of college who need jobs and internships were the ones who weren't getting them and they really struggled. So we're hoping this Assistant Matt, this process so that we're working on now. We're also working with a lot of big tech companies. So high tech organizations helping them transform the work they do Worked struggling right now with there's too much work and not enough time when you have to take care of kids and balance schedules. Snuff. So you'll have to be like a kindergarten teacher and A. granger daughter got into she. She'll be on fourth grade so. Loss. And it's a struggle to do all of that. So I call. Bats Lake the symbol way. I. OF NONE as you're virtual assistant right said if we all had virtual assistance like what could they do for us while we're doing other things? That's what we look for opportunities for me so In Insurance, for example, right now, big insurance company is obviously have a lot of spare cash is be blunt driving. Knocking into accident so they're able that. They weren't able to do. So we're using box to basically go across large claims data, which is super born for any of us two thousand tons of data patterns than with a pattern. You can make a decision off of it knits as simple as that. Really you're on how to do that all the time for them so that they know what their customers lawn where they're having issues in their platform, you creating efficiencies so that humans can think can do the things work and not do all these mundane monotonous. That's fabulous. I interviewed a lady who did that for a law firm? Yeah. She is a I because I guess when they go through choose telling me that when a company acquisitions another company, there's all this data that has to be gone through yeah here. Yeah. Like it's like quite it's just not an easy like ham takeover your company there's like a ton to and so they created A to do that in in just spit out the results lake. Awesome. Yeah. so much more efficient and than humans can do other higher level things like take that data and knows just what what you get off roaming through all that information actually helped drive decisions instead of just spending all your time digging through data. And that's what's really instantly even thinking about like I remember is we were working with the government recently on every time the you know either the senator, the house like think about this, this is impacting everyone right now is the legislation they're trying to create around. The cares act in. Kobe. In the unemployment payments and will they be two hundred, four, hundred, six, hundred, zero what's IT GONNA be? Will every time a bill or something comes before those folks they have to manually check with the last one was in what the new one was in manually basically go through those documents in red lineup for everyone. So it's a super intense process to look at what change from the last one were running. They have to run it through a pretty simplistic on different program to look at the differences between the do but not everyone does that not everyone's offices are doing that some of them are doing it still very manually. So what you could do with a is similar to what she was saying is you take those and you automatically give the high level of what changed and people will trust it raid rate times mistakes if you have an aide who did it, but miss something than you missed it rate link. Up to human error and we all make errors were more fatigue Dir. You've been working long hours we can use machines to do some heavy lifting. So we don't have the human fatigue air coming into plan those situations. Now, that would take Sadat UVA yet it goes way faster right because then now instead of waiting a day to have an aide go through invalidated I, it's automatically done in a matter of minutes. It's right there. It gives you a high level summary sluts. The next piece of what will see that I think really makes a difference is not just doing the heavy lifting but visualizing information in a way that we can make decisions off like making it really easy ray. Notes version. Yup I, the dummy book? Version as giving a talk the other day and I loved it someone did like. sketch patter sketch note version of my talk I was like only so much easier use that next time all were they drew though as they went oh yeah. The drawings the pictures, and like we thought we remember pictures so much better anyway but it was such a great way to visualize it knots. The next day I is once you get the data visualizing in a way where we go off what you needed. Executed out yeah makes it easier. Learning Book version of that one of those bots just following me around all day and just oh yeah you bum it. Be called the little tests listed Westie. euless direction over there needs to eat free now. WH-. That one. Yeah. Go Take care of that. I love it. It's pretty cool actually. So you're in Minneapolis. I. Am the crowds I know we. Love Peasley. Perk. Exactly. We did a big launch event last year at Paisley. Park because. After prince died you know it was I think. It's so tied our goal. This year was to come back home before Kobe. We didn't realize that was going but before Kovin happened, we wanted to get more local support more on the Midwest and this area in its tech ecosystem supporting people in on not just on the coast. 'CAUSE Lapis text developed you know in in Silicon Valley you're on the east coast. To the Midwest. Also wanted to create alive jobs in this space in the Midwest people. So we hosted our launch of in at Peasley part is we were all about keeping it local. You know all the Minnesota. Yet a country singer whose rising up the charts right now not ever in Laos country but he's local minnesota-based that was there in saying in just really focusing on local right now and then covert happened and now we can't leave. So it's good we focus local try. Anywhere. Trapped. You're trapped. Yes. When he said Minneapolis I was like all I can ever think about this Paisley Park. Have, you been have never been oh, they do a really here for all your listeners. So for anyone that comes they do a really cool tour and it's not that much more. You can sign it yet to sign up. Now, it's probably less effective. Small groups and. We're very smoker. People will get tour in see like some of his memorabilia in his cars and all that stuff near will give you. But on as the when I was there, I haven't been there in a few months. He still had white dumps the live ones that they had their. Pets that he owns. Like members. With Those are still there mobile rain again. Don't have the domes. But you can go in there is the VIP to a rare Fiji the I t tour it's again, not much more expensive than the regular tour you get a picture so you can take a picture signed their way out. It's great I love the eighty s man if I could go back and relive my eighties rate but telling everyone should if you take us trip through Minnesota book it online I had because they only do. A couple of days a week or something like that I. Think has but I would highly encourage it. It's a really neat. I mean, you see how like like everyone knows he wasn't a tall guy but you actually see hope tiny he was. As outfits whose tiny he was like hundred twelve pounds. Now, a little guy is very little. So but it's cool to see and you see the history in a lot of his awards in his studio. Obviously. Is there his office? was there it just kind of neat to see inside you know he was such a creative person. You know how people live when they're. Out of the norm their way out there I. totally. Encourage people to check it out. If you ever get a chance, I'm going to have to on my bucket list I have to yeah you need to his you. Grew up at that Air I. loved it. so He's in there. So many other will make The time in some of those, the jets are from Minnesota no one remembers the jets, but they were a singing group to The jets are for. Today. Were lived in Minnesota for a long time they would record with with prince and I was just talking to on Friday at a women's leadership events on they were trying this new thing where pardon person most virtual like six, hundred virtual We didn't TV studios. There's only like people in the room socially distanced but the MC was from WC CEO and she was the steal family which is very musical in Minnesota they record a lot of. With Princeton did some of the backup work. All right. Yeah. That's. Actions here yeah. No kidding. Wow. So Your company I noticed does gaming. Yeah. So we've worked high for years. So people I knew at East sports were before a lot of people din we worked on a first eastwards platform all years ago. So I remember when I was working on it, I would ask you g notice. What's Right because it was years ago and we historically had worked with. HBO AND HBO Their Platform from on a homegrown everyone knows game of thrones scratch. So thrums crash off until. It. All came to an end. They were looking for a new streaming or purchased one from MLB. So it was called. Bam. Tech at a time will not many people at used MLB streaming platform unless you work for MLB. So when we start working with each feel we had experienced with intech in the streaming platform. So when the first company to Create New Sports team out in California, wanted to use that platform. You're the only people with experience in it so Yeah. So we worked on that. Originally and that was for right game. So a lot of people, no legal legends and their staff. So it was my first foray chew on eastwards was through riot games in the gaming stuff we. Did some work with fortnight, which is a game that a lot of people have exposure to at my kids play. Yes. So we did. We did. Like my son of nine year old son he'll to me like I, know what? The Hell's on Cape. Like forty when you get different skins and I'm like, no. I can't. Deal that is such a huge. Events, and that's actually one of the problems. He's right on those skins in staff are really important. So when Someone goes in and say you're nine ten eleven and you you only have so much money and you spend money on these things. They better be on your player you can use them. So that's one of the things we work on stuff like that to make sure that you get what you think you're getting when you're engaging in a platform like. It has to work in, and if you think about gaming copies, here's at super fascinating just in the world of gaming is it's they don't know what's going to be bank till launches, right? Right. They, Kinda hobble it together and it's like you know twine in duct tape and all that stuff they get it out the door, and then if it goes massive and kids love it all of a sudden you gotta make this thing work in scale. And that's where we come in is you know they initially just Kinda got it out the door but now you're gonNa make it work for all these kids who depend on it f three day run. The life here. Yeah. What's Yeah. Yeah. Definitely. Done inchoate but I'm the big one right now animal crise yes. Yes. Do you play do you. Hope village alcohol I don't play but I have a teenage. United Learn this rate like the village yet to maintain it like just leave it go weeds grow at any. You know. Like she and then she's very particular about where you can plant trees in. You gotta go she all my God. I'm like you know what? We're lucky. I, keep this place a flow. There's ain't. I. Don't need virtual villages that I'm keeping the flux, my own village and. We're lucky with her all surviving. Exactly you address. Did you eat today perfect doing day? Successfully made it halfway through the day. Yeah, and she'll be like Oh. Do you WANNA come no I don't want a player you should. I. Am All. Exactly if I had a time warp where it could just lose a few. When matter maybe but otherwise. Known. So that seems to be the big thing during Hoven for straight now just like God? Yeah. It is the newest games have a here's what I think is I working a with another company just now and I will what a brilliant thing it's east or Coaching and basically certifications for coaches. Teams. By sports you have coaches. Well, there is no equivalent in eastwards, but if you had coaches who are certified to coach kids so they grew up with more than just knowing on a play but lake what is good sportsmanship in easy. What are kind of the rules that we should all live by? You know what are the social things they're learning to learn some things through this process hopefully, Mike how to be a good sport all the same stuff you learn in live sports but not all kids are live sports kids so if we are. To what they do like these eastwards I was like this is really emits a new company leaders talked with last week at, we're starting to work on creating Matt Program. Rebuild, these certified coaches that can help kids with making sure they've got a principles down the foundation down, but they are using good sportsmanship that they're getting leadership skills, all those types of life skills that we want them to have because we're not getting in schools right now. No Right. But if you could get through this right at something, they spent hours a day. As you know on I mean, how do we infuse it in a way but still game if occasion they have fun with it and all of that so So we are the. Our conference will be over as any, but here's this but we're using a gaming kind of platform in. It's like you have an Avatar and you walk through it's very lake tried to be like in person as much as possible because of that ambience and atmosphere that gets created when people come together it's very exciting and whatnot. So We're getting a lot of feedback that zoom and things like that are kindling the relationships within companies. So I'm guessing you're remote. Yeah, we were in our office a little bit Minnesota Open backup. June. So June we. Started Open backup, and we're a smaller organization rate. So we don't have the large numbers that other people do so. When the funny thing is we trained do on and I heard this even from my friends. In California that they'll take smaller groups of people two or three, but they'll socially distance in go to like a park rape nell have a discussion outside in the park just on a topic that we're GonNa talk about as team just to get some of that mixed in interaction for the folks are comfortable with a right not everyone is. But for us like I said I'm starting to see kind of blends of increase in virtual stuff. Now, we're like a TV studio thing where we did at some people in person a lot of people on the own, but you've got a different vibe from it and learning how to mix those strategies i. think this really Nice. 'cause there's an you the a lot of the introverts that I've talked to who are naturally interpreted like this is amazing right like we love it gala. Living with this life this. Kobe is great. This is awesome. Right and then the huge extracurricular link. Oh. My Gosh I'm going to hurt someone like. It's so hard. It's very hard. Yeah, and with love your family, but it needs some other people besides. COMA SOCIAL PERCENT WE NEED TO GET AWAY FROM Have other inner each other than for night scans animal. Sees. What's for dinner. Exactly yes something. Your not fly. I'm hopeful that we find no way as it's safe for people but to start to do these mixed events where the folks that really do there. Okay. On Zoom in Narrow K. you know being remote but feeling connected are there and then the people that do want some more men interaction can do it in a way that safe but distance still. Larger ceases with less people and all of that that we'll see how that plays out, but we're trying to hear more and it seeming to work as well as I really. I. Have a group of folks that I've known for a long time in my circle where I'm you know slowly starting to get to them now I'm an. With those groups in small ways. They're comfortable. But yet they're getting what they need, which is an interaction ray. So, does your. Company work with like all outs. So any act could be made into way. I. Really. How would dead? How does that work? At that. Yeah. So basically what we do I is. A designed. Human Sern design sessions since basically, what are you trying to achieve like? What are you trying to do with whatever you're building ever has that goal, right? And then we basically build them a road map and he just says based on what you're building all the places kind of like the legislation thing where if this is your process in, do your job every day or what you ambitionless APP doing for people every day. Having start to layer a in sites across that in what are the different components could be as simple as you WANNA get. Working with a group out of New York. And they work with a lot of female business owners who are starting lease and historically Amazon Google other big guys. Our had this capability recommend know what you want like why drain show stuff in your cart for you and all that stuff. But we said, wouldn't it be nice to bring that to small businesses and give them some of the insights that the big ones are getting but show him how to do it because they don't. Have all the tech people the savvy that the big ones do. So what we do is build them a roadmap that says, would you like to just know sentiment of your consumer like what your consumers thinking right now about your APP in what they're saying, I instagram and facebook and all of their social media platforms pulling that in and then analyzing it and saying if you make these two tweaks, you will are going to like this more. Or using. Yeah or using it to go across, say you're you ex design. So how you actually set the APP, you can actually see patterns of how people are engaging in where they're stopping insane to reorder the US or make changes that will make it more optimal for your consumer ned to you work around lake. International. Company. Yes weaved. We were going to so. Forgo visited I was actually in Europe on. Doing some work over seas, and now as a strategy I think they'll be twenty twenty, one later strategy now with just everything going on in the world but. Really what we wanted to do like I said for the rest of this year is focused on giving back having that. Act and then small businesses. We really want also impact. You know the small businesses that are struggling right now giving them some advantages because we want to see them survive into next year and make. So. Let's come where we're focused, but we'll go back more international probably next year I think is where we'll see now someone came to us and said, we have this really cool problem. We went self we'd probably help them with it but but yeah, I think it's probably Marvin next year. Okay. So what do you do when you're not busy? Oh Gosh right. Can you probably have a ton of free time? Yeah. Yeah. No that's one of the things has like homing It's been I feel like it's gotten even crazier this all started because. I have I think a lot of people listen woke up and went oh my gosh I don't have enough time to do on my work and. Formerly were kind of afraid or not wanting to deal with a and now they open a woke up with Obama we should probably do. It's still. It's coming. It's coming like a tidal wave. And they know it's coming. But right now my passion is with us and it's really with us, entrepreneurs in kids. So this is gonNA sound funny. This doesn't sound like a side project but. I'm working right now with the. People in the government here in Minnesota to pass legislation to allow us to own their own businesses. So it's passed in California in Colorado, but those are the only two states that have it says that I know of right now, there might be a third was working out they passed it for sure California in Colorado maybe Nevada but not as it. Owned business. Yet, to allow news entrepreneurs to own their businesses because right now for you if not, in those states, your parents have to open up the bank account. They have to do the INC they have to register the business while about I'd say so it's all under their name. Yeah. If you don't have appeared that wants to support you in that rate. Or that he knows how to do it. So we're partnering with an organization out of Colorado called Dream Tank, and they'd built now a global program for youth. It's like techstars or inhibited for youth where you can apply get in a Nikki. You're part of this program to get the support Indiana how dot CERTA business how to come up with a business plan had a get idea how to build that out now that the events were we wanNA pass the legislation. So youth in our backyard here said it's all about local. APPEAR MINNESOTA RESTRICT MINNESOTA but I wanted to the surrounding states as well. Wisconsin needs the new guys needed. but we want to start with Minnesota and get that passed. So we'd hoped to get in last legislative session, but every obviously on Kobe but I think the important in the fall for kids because without schools without some of that interaction, let's how them working on things. They're passionate about in there tied to things they the only requirement for youth. This can't be just like we can't just start to do things that. Don't make a different turn good prey. So it just legislation ties it to the United Nations, sustainable development goals which means future of work ending poverty something that makes an impact in the world that has to be tied to that So this program learn how to tie it to impact like I mentioned one for veterans the one for future hospitals those types of things it could be around water safety, it could be around. It could be around anything like that. That's awesome. Yeah. So it's my spirit. Does not sound like spare time I thought you may be He'd be like, Oh, I think to golf. I like to pass legislation. That's all. Right Where's the part where we have drinks cited? To virtually happy hours, I am becoming quite the sewer of. Low Sugar Wines. So I'm trying out now I found this really cool company that does low sugar wines. We don't get hangovers or any of that bad. Yeah it tastes like well, it's. Very good. But some of them are very good. But you know what it is it is I would encourage people who early say, Oh, I get headaches from reds or I get headaches from certain line. This is a company that lab tests then for the chemicals in the sulfates that's usually what giving people, all the side effects, all railing, all these chemicals in and all this other stuff. But this comey, what they do is they lab testing to tell you what's in it and preservatives sugar I'm telling you is like life changing if you like. Funny. Nobody likes morning Gino for it. That's for sure know. Good this stuff is incredible. They're called dry farm winds in their out. Of California, they're amazing mail every month or every month or other every two months I think they should you new ones on? The liberal yeah. Oh. Yeah. Comes right to your door. All right to your table better. You need to go anywhere like you and you can pick red white or a mix of red and white or rose as those in the summer and. Ably Ones Oh yeah. The name of the this? Yeah. You drive farm wines. Wines I right and you can do different packages different subscriptions. It's like changing and I'm telling you I need you to try it, and then I need you to call me and let me know if I was right about how you could not the name encouraging. We'll do this but whole bottle and way of the next day it'd be like totally good. I could run. Exactly. So yeah, not encouraging that but if it happened, you'll be okay we'll be all right your worst part about why It is and that's why this is so different. It's just an I love it because they I didn't realize this. I love why I didn't realize that allow the big manufacturers. You only go in your whole I. Love it because it tastes seem well, that's the problem. All those chemicals are. What makes it always tastes takes. If you have the the these ones that they map test have to be ground the reasons called dry farmers they keep us artificial stuff to grow the greats. They acted dry it like let it mature on its own in all our intervention and without all the chemicals produce them. But it tastes different. So like you could get one bottle of vintage like seeing near whatever and then get one in t slightly different because they're not adding all that stuff that makes it tastes like macaroni and cheese new where it's like. Color. But I was tasted the same. Kraft Mac and cheese with the. Genius exactly that's Kalihi induced. All they probably was pound out chemicals. Yes. Same, thing with wine so Are you kidding many sports? I have my four year old loves to go see you talking about golf we? We just put in like a little of course in the back, a little I have been golf course in the backyard for him to start doing that his he why's he loves to swim and things, but they really right now. So no, we've tried to do like golf in the backyard for him in the my daughter is super So she's a swimmer and an artist, but she's not a team sports person. So she'll always do those individual type things but probably not teams sports for about one. My son is big swimmer. Yeah. An was he a natural swimmer some kitties Roman in it's like they start swimming right away. Yeah. That was her. She's long in sheer minds need like a girl version of Michael Phelps. Hans Acre feet are like minden baked. Barry Long limbs in things. So yeah my son's not cuevas old is your daughter. He is nine and he's almost five feet and he weighs up a whopping sixty pounds. So when the wind blows just. He's gone. And Lee Link? Just. Yeah Rate in the water and their. Graceful when they? Are Floating on there. Yeah. I know I'm a knows exactly what you're talking about something. Okay. Well, we need a website. Yes. So two of them I am mine, which is my Gen Bodine Dot Com. So if you WANNA learn about wine and that stuff go there. That's One site to. My Jimbo names it's J. E. N. N. I n. e. dot com where all make tips and all that stuff is the fun stuff and then a APP store dot com is our company website and you can put in your information will get to build your roadmap and plan for a perfect and then it bit so they can reach out you. Can reach out through that like the contact us kind of thing. Totally can yup. Not Website or on link deny us not a lot of people have questions to. All right perfect well I don't want to take up too much time because we know that dry farm wine is waiting for now. It is two o'clock. No, it's not there. What is it? It's almost one o'clock though I mean Kobe time that's practically like five o'clock. Correct. Kwok's. Those for rain. That's how I look. I'm seeking anything if I could make it after twelve. Game on. It's a good day. So is everything happens before the after twelve it's like. All right now so The days periodically over one time wave. Look up to do a virtual happy hour sometime with your driver God. Yes. I'M GONNA check out and then we'll have a well. Tasting. That's well. We'll. Do. One of those This tastes like. Summer evening. And then some mobility and that didn't taste so then but that's okay You. belousov. That's right. So all right. So Jen J. E. N.. N.. Go Nin, dot. com. APP store. Perfect, both of those are right and This is a side now. So people can stop with me at this point but I'm GonNa send you information you join the wet twenty twenty. Three Day Virtual conference in you don't have all three days like all the send you a code and. I want to go and check it out and maybe. He'll be. you'll have some opportunity to network and promote yourself. So there you go. I'm going. It sounds amazing. The you know what I'm still funny on that I think I adjust seen someone promoting that that I knew formation line. Yes. So Melanie culpas keynote speaker. She's She's yes, she is would they is she open? A Thursday maybe. I had met her we met with a lot of the exact set nationwide. So when I met her I started promoting so I said we need to go so. was already on the wig of going yeah. Awesome. We have JJ I never say her last remember that's a fault of mine. DIED GERONIMO Yes. She does like a lot of things to Cleveland. Tech related a couple of bucks and then Tiffany Norwood. Saw Yeah And Forty five ish speakers. Has can be all one one man. All women but one man I know very exciting. It sounds amazing. We're going this is going to be awesome though I will send you the information so you can just walk right on. Yeah. Lady I. Thank you so much. You have a good rest of your day. Your Mind Day. and Go. Go get my one. You'll get your. I. Want to hear about the wine if you liked it okay. I'm going to get the wine and say I'm going to have to check it out I know I want your view on it again yet to get at least six in two of the six you'll love in the maybe a couple of wall. But at least then I found, you can look up and find him other places because they've novel lab testing rates. They know it's I would do the ones I don't like I would give it to a friend and be like I tried to swim. It's excellent you should try. And then and then been Charlie I, try it. You're not going to be like. All right. Well, it's. Totally. Yeah. They'll be like raising. You'll be like it's still healthy for you. Now, cover calls. because. Eating grapes. Because I'm that type of person do that. A. So. Thank you so much. Thanks for tuning in and don't forget to subscribe to our podcast and leave a rubio. You will see you next time and feel free to drop us a line at get with it dot org.

Minnesota Kobe California CEO US golf Grayson Matt twenty twenty Midwest Jack Welsh accenture Jennifer Bonin Kobe MLB Elizabeth Inyo
The Culp-able Edition

Slate Money

43:02 min | 3 years ago

The Culp-able Edition

"Slate. Money is brought to you by Goldman Sachs for insights from leading thinkers on the state of markets industries and the global economy. Listen to our podcast exchanges at Goldman Sachs, you'll hear discussions on a variety of topics with far reaching implications from how venture capital is fueling innovation to the global shift toward renewable energy to the economic impacts of President Trump's legislative agenda and more hear all about the trends and developments shaping the world up today. And tomorrow that's exchanges at Goldman Sachs available on apple podcasts, Stitcher soundcloud and Google play, and at GS dot com slash podcast. This episode of slate. Money is made possible by Comcast business. Every industry has new expectations. That's why Comcast business is moving beyond beyond connecting to helping you create experiences beyond network complexity, two zero touch one box world beyond the best for your money. To the best for your business at an even greater value. The company that built the nation's largest gig speed network is now the company making digital transformation possible Comcast business beyond fast actual speeds vary and are not guaranteed. Low when welcome to the culpable edition of late money or guide to the business and finance news of the week. I'm feeling famine of axios, which is Greek for please subscribe to my newsletter. It's actually of it's coming out on Sunday, read it. I, I'm joined by Anna Chemin ski. I am joined by the Huffington post's very own Emily bag. And we've had a really tough job this week trying to work out what to talk about because there is so much talk about amazingly for all of the along crazy. We are not going to talk about tesla, even though we could probably devoted an entire episode to the latest stuff going on there. We are not gonna talk about Unilever, but I'm really interested in that as well. I think this week we're going to talk about the supply chains international, geopolitical hacking. The full and full of General Electric. Remember that used to be a big company, which matted. We are going to talk. Let's start with Donald Trump because we haven't spoken too much about his taxes of late and somewhere in the middle of this crazy news cycle, the New York Times drops, fourteen thousand words of insane, like eighteen month long investigation of Fred, Trump's tax returns revealing that Donald Trump was like making a million dollars a year at the age of seven in all of these crazy waves that they used to get around inheritance tax. And this was really big in the news cycle for what, like twenty minutes. Yeah, it was about a half an hour where people seem to be excited about the New York Times story. I don't think that many people actually read the all fourteen thousand words that Susan cry my stove road the I didn't well, and we're going to talk about it which, but the New York Times did a great thing, which is they, they like package. There's they had like a two and a half thousand word TLD's. And I guess the the big conclusion in terms of what we learned about Trump is we. Learned what we sort of knew, which is, of course his whole stick about. I just got a small million dollar loan from my father and I paid them back with interest was bullshit all along. And the times actually put a number on how much he did get from his father, and it was like four hundred and thirteen million dollars. So that kind of gave lie or put more sort of juice behind what we all knew was total fiction writing. Well, we also learned that Donald Trump does not know what the time value of money is which just like to put that out there. Oh, yeah. He really upset that the New York Times was adjusting numbers for inflation, right? For the man who like you from talking about how inflation is is a big important thing like suddenly like when when when they just numbers for invasion and they make it clear just how enormous these amounts were in the seventies he gets upset. But I feel like the thing that we knew was Fred Trump was very successful property developer, and ultimately his money made its way to Donald and a lot of Donald's money was Fred's money. The thing that at least I didn't know was the that transfer was criminal. Yeah, there are some. I thought the most horrendous sort of criminal tax fraud described by the times was the all county. Was it all county building in supply maintenance, which is a shell company that Trump's cooked up so that basically, Fred Trump could give them his money without having to. Pain. It's actually quite somewhat evil in terms of what he did because not sorry to cut you off. But basically this what happened with this company was that they would buy things for the different Trump properties, and then they would vastly Mark up what they had bought and then sell it to the Fred Trump's organization. And then that money would go to Trump's children who own this company. But then Fred Trump would use those padded receipts in order to increase the rents of the people who lived in his buildings. Right. And that's, I mean, that's sort of like the bigger picture for me was just like this man, Fred Trump really took advantage of these war Federal Housing policies that enabled him to build virtually tax free and become a millionaire. And then instead of, you know, being a patriot and paying his taxes, he built the federal government state government in the city government out of tax money. And at the same time built the people living in the properties that the Federal Housing policy created then begets a son who's whole thing is now in office to get rid of regulations and policies of the sort that only benefited his family. Right? He's he's really quite remarkable. Yeah, he's you. You now have Trump basically out there saying, you know, we should be cutting Medicaid benefits. All of these things where his father was able to become as wealthy as he was because he was essentially getting almost interest free loans from the government. That is how he built his. Yeah, these people they take from the government and then they take again, crazy, we'll this all comes down to at least a huge pot of this story is basically inheritance tax. You know, Trump should have paid fifty five percent in stacks when he died. And in fact, he paid five percent. And in Harrison's tax has been a huge fight in congress and perennial flow fight in congress along launch leap in the politics and defensive lines branded it, they call the debt. Right, right. Has made people that really don't shouldn't have to care about inheritance taxes, middle-class people somehow care about it. But I feel that does that now I know I'm kind of smelling something in the not in this congress of. But I think that now that people are much more aware of privilege and the effects of privilege and they see things like the cabinet nominations and they see guys who you know, grow up, sort of rich and privileged, just kind of like waltzing into positions than unqualified to be in, then they'll stunt understanding. I think what a lot of people have been saying on the more theoretical level when it comes to inheritance tax, which is that this is just the easiest way to tax privilege into plan, make the playing field a little bit more even for everyone. And I think pretty much everyone most people would agree with that in principle. And I agree with that in principle, my concern with this in practice is always that as article kind of shows wealthy people will always find ways around these taxes. And so I'm not saying that that doesn't mean. Mean you I'm not saying you shouldn't have them. I'm not saying you shouldn't have higher rates. I'm just saying that people should be aware of the fact that you are never going to bring in the income. You think you're going to bring it. I just don't think that's ever gonna happen. Well. I have a few thoughts. First. You would think logically, like what you said. People are more aware of privilege now and would be more likely to support like inheritance taxes. But I think the emotional arguments that are made to argue against the inheritance tax, calling it a death tax talking about like farmers who can pass their farms onto their children. I think people get snookered by that kind of stuff. And I think they really believe like wealth should be passed on and it's not right to like take it away from people silting in the opinion polls, which is fascinating, which is the sum clearly proportion of Americans like forty. I don't remember the exact number think that they're going to have to pay inheritance tax. When when in fact, the real numbers like zero Ray. So I think they're snookered, sorry. And then the other thing I think is I, I know it's it seems true that like the wealthier always gonna find a way to dodge taxes. But that doesn't mean you stop trying to go after the wealthy to. Them to pay taxes when in fact, that is actually what the US federal government has done cutting off funding to the IRS. There's a good investigation in propublica recently that showed funding to the IRS is down audits or down. It's like they're down by like enormous percentages three-quarter like Guth seventy five percent less than they have time. Try and I'm not saying that we should try. I'm not saying we don't we end, but this is this is no rocket science. Like, you know this from looking at Mexico in particular, right? Which had grief instance these countries which have like incredibly small tax bases and the way that you get people to pay more taxes, it's just by beefing up their equivalent. If the IRS it works, we know it works and all you need to even need to actually change in Harrison's Texas for a much. What do you need to do is just throw a bit more money, the IRS and get them to look more closely at the largest states. And you know, they would pick up on this kind of thing. But for decades, they've kind of either not had the manpower will not cared or somehow manage to whiteness. I think part of the issue and this is where when you talk about gift taxes, inheritance, taxes, notoriously, these are never audited. And part of the reason that never audited is because it is incredibly expensive and time consuming, and. They know that the people on the other end are going to have the resources to make it even more expensive and more time consuming. And I agree with you, I'm I'm not saying that we should not look into ways to better ways to collect taxes. My only concern is just that. I think when we're structuring policy and we're when we're structuring policy with expecting a certain amount of revenue, we should do that with the reality of how the world actually works and just realized that some of that money is not gonna commit show. I think that's that's always big right. The the point is the directionally, you won't hire inheritance taxes, and you want much strict to enforce enforcement of those inherent Texas. In basically, you give the IRS as much money as auks because every dollar you spend on the IRS pace with self ten times agreed with that, but you also have to make sure that money is spent. Well, I just say that because I think sometimes there's a tendency to think that if you just put more money in something, it works better and that is not the case. You have to make sure that there are also. Changes to how the IRS functions in order to make it more efficient. And so it targets who it should be targeting and not who it's targeting. Now I think it makes you what makes you think inefficient revenue just undefended because even when you had higher levels of funding, you were not cracking down on tax fraud in a way that you would expect. So I think I think the problem, there's ways to low there was just never enough money, but then the way the rich people managed to avoid taxes has always been to persuade congress people to undefined the IRS. I don't think it's quite that simple. Well, one point that was really interesting that it hurt on the political gabfest was John Dickerson saying, maybe it's time to take a look at inheritance taxes more broadly, like maybe people aren't convinced really American people aren't convinced that inheritance taxes are a good thing. Most people think they're kind of a bad thing. So maybe figure out a way to get this money from these people. When they're still alive. But the inheritance tax is like the perfect tanks because you you come, it's clear the perfect because this you can't use the money when you're dead, like like like taxing dead people there, the love people who need money, say it's just an. I'm actually I don't believe this. Okay. I'm just saying that. I know this is an argument that is made on the right, and I know it was actually specifically made by Milton Friedman that when people said, I don't understand how can you possibly be opposed to a state taxes. And his argument was look America's not actually country of individuals. It's a country of families. That is how America's structured people, build wealth, people take risk. People do all of this with the idea that they're gonna be able to build something for your families. And so that is why America is traditionally been so opposed to these types of taxes while I don't agree with him in the sense that that means we shouldn't have higher state taxes. I think we should be aware of that because I think there's some truth that that does reflect how a lot of Americans think it's very tribal. I think that like Fred Trump making sure his his wealth and everything he built, we get passed on to his family and like working the whole family working to that end doing they're frauds games altogether, like big, happy family. There's something very tribal about like one, keep it all in the family, which makes it all the more ironic, that in two thousand four, they sold everything. And none of his and it's all gone and he just used it to aggrandize himself. President Trump did and the whole, the whole group, a tribal nature of it remains. I think that explains, you know, the whole Ivanka phenomenon. She's otherwise lies in not to mention the Jared phenomenon whose equally tribal with regard to his own family who probably even Richard in the trumps and also explains just the behavior of incredibly rich as generally the, if you look at people who either have inherited or are in line to inherit hundreds of millions of dollars or billions of dollars, they include ABI tribal. They mate off between each other at an astonishing degree. This associating, you know, they like way more than you would possibly expect because. The only people who understand what it's like to be so rich. It's like American aristocracy, this is how it works. I will. I will just say that as an as the English person around the table, we had an Amazon Crecy up until about twenty years ago where the Queen didn't pay taxes, but now she phase taxes so it can be done. Slate. Money is sponsored this week by net week, which is big, powerful cloud software, which does so much more than wake books. So whatever little piece of app you have installed on your PC, a few have a company and it's growing and you need to start being on top of huge number of interconnected interlocking parts. You have sheds red sheets. You have random little manual processes here, and if hiring you have customers, you have a bunch of different things that you all interconnected and you're trying to keep the rowing along with your company. You know how hard it is. As some point, it needs just Roth, all of those legacy systems. You need to just stop a fresh with something which is designed for companies which your new size. 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Tim, so go to net sweet dot com slash money and get their free, rushing the firefighters to guide today. So it's a big week for massive print media investigations because not only did we have the New York Times coming out strong on Fred Trump's taxes, but we also had Bloomberg coming out incredibly hot with the business week cover story this week, which I honestly don't know a single person who knows who has been able to work out, whether they believe on open isn't amazing story sucker. I mean they said they had seventeen sources many from inside the government, some at the companies themselves. So tobacco up a little itty bitty chip, the size of the tip of a pencil was placed on some servers made in China and then infiltrated about thirty different tech companies and even federal agencies and allowed the Chinese government's, you hack stuff. Is that what is actually really. Efficient is that it was placed on motherboards another other boards that are used in everything. And although that at least as the article suggests right now, they're only thirty companies that they've identified this chip potentially could allow hackers. Because what this does is it opens up the operating system to implement new code and allows a remote computer to connect with whatever computer it's gone into. So if this is true, the ramifications are really scary and all the companies involved. So Amazon and apple, and this company's super micro that we were just kind of making fun of its name earlier, say, totally didn't happen guys. It's all ally, but it just I don't think Bloomberg BusinessWeek would publish the story if they actually believe those denials. And I do have some trust in them for fact that they don't believe that. I have never seen denials this vehement in this strong and isn't it possible? The government could be where this is all anonymous sources. And then the other thing is that this is ultimately national security reporting. A national security reporting is always incredibly fraught in difficult. And if you get it right, you'll, you know, lucky on some level, I think it's important to say like, okay, is it possible as happen? It's hospital didn't happen. That's true. But I think what's almost more important is that even if it didn't this very likely could what exactly what I mean. So this is the interesting thing is that there's this wonderful quote in the article, which is I have to say much better written article in the New York Times investigation where they were saying, like, if China could do this, if they could put these tiny little chips on motherboards, send the motherboards to super micro in California, which would then send them onto Amazon Apple and manage to infiltrate. The the, these chips into the most important, you know sensitive areas of American life. It would be like a unit like a rainbow. What was it? It would be like. Cohen jumping over rain down. It was a great quote. And so on the one hand, it's incredibly terrifying. An important to understand. The complexity of global supply chains really does mean that this kind of thing is possible, but what we don't yet have is a real understanding of just how possible just how impossible is like. I haven't seen a lot of unicorns jumping rainbows in my time, and so in that sense, that's that's actually that quote is one of the reasons why I haven't completely bought into this story is the the story itself is saying like, this is an extraordinary claim, extraordinary claims require extraordinary avenue. One thing I thought was interesting was how well this story fits into the Trump administration's narrative about China and also its narrative about economic nationalism, right? Like if you wanna protect your glow, if you wanna protect your hardware and your software, you have to get out of the global supply chain. Like that's the conclusion that you could draw after reading this. You're like, wall, we can. Entrust China to make our stuff anymore. It's someone called it a Satan's bargain, which while we can't trust them, we can't trust anyone. We can only trust ourselves. Can we even not really? And and so you know, like I guess, like maybe people in the Trump administration who are trying to get tough with China, like this is the perfect story for the interesting thing about super micro is that it's this huge company in California that no one's have a head of his supplies just about everyone. And they make these very, the super super customized motherboards for like highly specialized applications, and they have a gazillion link PHD engineers on stuff most of whom it Chinese. But did you catch that? It went from being a three point, two billion dollar company to getting delisted from the NASDAQ when and this is before that I thought that was good evidence to the truth of the story. And some of these fears, they definitely end the government actions against them predate the Trump administration. So I don't. I agree with you that this does relate to some of the, I think. Rhetoric coming out of the Trump administration, but I don't think all of these fears are one hundred percent unfounded, right? No, I don't. I don't think so either. I mean, we had a conversation in a previous episode about while way and how like you know, the US government is very, very worried about hallway phones which have manufa a lot more of the supply chain is in China, and they just don't know what's in those things. And they're saying, like if we're building out our five g. telecommunications infrastructure in the US we just don't have enough oversight over that process to make sure that these kind of chips don't wind up in the entire five g. US infrastructure. And if that, if that does wind up happening, then basically China has control over everything. And it's, you know, like in a world web cyber attacks, arguably the single biggest risk to the global economy. You know what we're doing is with. They're all attack vectors, which we know exist in theory and no one knows whether they exist in practice, and that's why this article I think is significant. Of course, we don't know a hundred percent, but there have been a lot of these rumblings of fears about this, but there you've never been able to put a specific company on it, a public face of this, and this article has and said that, you know, we don't know the extent of this, but this does definitely seem like a possibility. I'd also made me think of when we talk about food and processed food and how we don't know where all the ingredients come from. It's kind of like true of everything these days you just everything is made everywhere, and it's all mixed up. You know what I'm saying? Like maybe there's an idea where we could have a slow technology movement. Actually. The farmers handle everything is so complicated these days like there's literally nothing that is made anymore right that we can sort of disassemble and understand how it's made. And one of the, I think it was Matt LeVine, who making this point about this story, which is just that like even apple, even Apple's own engineers don't fully understand what is going on in technology within apple, everything is so complex these days that no, not only just no one individual, but no one company has the internal expertise to understand everything and has you know that's track elliptic behalf naturally. Like one day the machines are going to take over and it's like, this is kind of what they've already taking over. And also there is a difference between a potential hardware attack in a software attack. The software attack is what we tend to be prepared for, and we have more weapons against that. Whereas no company has the internal resources to really go through hardware in the way you would have to. If we were constantly under threat from hardware tax, that's why this is really significant. Even Amazon AWS, which was allegedly the who found this they had to send this out. They had essentially outsource to a third party to do due diligence because they didn't have the in source resources like so. There aren't a lot of real solutions to this because you're not just going to like completely say, okay, the entire supply chain, you know, like that's not gonna happen, right? There's no going back. So, yeah. I mean, I think right now we are still in the world of unicorns jumping rainbows and unicorns don't jump over rainbows very often. And so we shouldn't be walking around like terrified that you are gonna jump ever rainbows, but. We do know you know which direction technology is moving and things which were impossible. Five years ago are gonna become in place in five years time. And so and I think the big lesson here is that we just don't have like an anti unicorn plan in place to make sure that unicorns don't regularly jump ever rain. I was invited. Slate. Money is sponsored by ZipRecruiter for all of your board. Membership needs. If you need some young peasant or an old person or an experience Besson or customer Representative, anyone to be on your board. Fly advertising that job, and you might be surprised to apply and how surprisingly qualified they might be. It's not just the boards. It's the see does if you need someone to take over General Electric, you just find some random guy who happens to be on the border already or do you actually advertise that job? UN's ZipRecruiter because you probably do a better job. The fact is ZipRecruiter will find qualified candidates any job. Your jobs might not be as big as CEO and General Electric. They might not pay as well as the General Electric, but they are very important. You wanna make sure that you get exactly the right person in the way you do that is you go to ZipRecruiter. If you go to ZipRecruiter dot com slash money, you can list your job for free get qualified Africans within one day four, three, and they will be exactly the people you want because it doesn't job and filtering things out for you. So go to ZipRecruiter, dot com, slash money and find the people who will make your business. Once again, that's ZipRecruiter dot com. Slash money. So they used to be this big company, General Electric. It was enormous knit with central to America, and then it became a Bank. And then this happened and then the Bank imploded. And then it became like a shell of its full myself. And then they brought in UC. Oh, and then the new CEO didn't change very much. They fired him and replacing with an outside. I was just shows how desperate they are, and they wrote off twenty three billion dollars of goodwill in the power department, and the whole thing is falling apart, but the stock went up so everything's fine. Well, the stock went out. Stop went up because they fired Flannery and are bringing in Culp who Larry call who was formerly at Donna her who they believe will be able to change things more quickly. Although I think it's really important to note the stock might have gone up. The bonds did not the bonds have been downgraded. If you look at where the yields on those bonds are from where they were at the beginning of the year, this is not a solid company. If you if you learn anything from listening to slate money for however long we've been producing slate money, never look, talk prices. Look at bond, yields the bone deals. Tell you everything choices noise. Yeah, and I think this is interesting. I want to go back a little bit too, that goodwill right down because I actually think this is important because to me, this exemplifies why GE partly is in the position. It's is that this to me is really a lot of Jeff Immelt because the reason they had that right doubt is almost entirely because of this acquisition of this turbine company called Alstom and. That that acquisition cost ten billion dollars, and you may ask, how can you possibly have? It was seventeen billion dollars of this full right down. How can you have a seventeen billion dollar right down on an acquisition that cost ten billion question, right? Well, the reason you can into shows you how bad this deal was. So the way you calculate goodwill is that you take the fair value of the company's assets. You subtract the fair value of their liabilities, and then you subtract that from whatever you paid. And then that's goodwill when they actually determined when they bought this, what they're actually buying turns out their liabilities were seven billion dollars more than their assets. So this was a deal that should have they were buying in the insolvent company basically. Yeah, basically, yeah. And there were so many people along the way who were saying, don't go through with his aquisition. The French government was pushing back on it. So then you had to make all these concessions. It was the worst deal possible. And to me, this is part of the reason GE is in the position, so so. Okay. So just to be clear, just we obviously Jack Welsh was desert. Just because what he did was he tend General Electric into a Bank, and we know what happened to banks in two thousand eight well, and then he gets replaced by Jeff Immelt who pussies to pay ten billion dollars for company, which is wet minus seven billion dollars. Yeah. And then Jeff will get replaced by some guy called Flannery who Flannery is around in the twos, basically nothing. And then now that, like let's find someone who's never worked today in General Electric for his life and this massive and his single going to be able to turn this company around. He did good job with Danaher. I mean, I think that's the big part of it. Now, granted, that was a very different thing because that was building up a company that was taking us dollar company and making a kind of more modern conglomerate, which is understandable why they want to be a modern conglomerate, why they would want him. But this is a very different problem. You're talking about having to sell off massive portions of this company in order to service their debt. They have like seventy seven billion dollars in debt their debt service costs. Going to be going up so they are going to need to generate cash and a lot of their businesses at the currently have are not generating enough cash. Can I give you my like feminist view feminist affirmative take on. I think this is the fall of GE is like the decline of the patriarchy because because Jack Welsh and I'm really the culture before it was all like man in the gray flannel suit. GE's whole thing was like, we are the management experts. We are an Jack Welsh, embrace this theory of the six sigma thing, and you know, he did the annual calling of the bad performers and it's all about, I know more than you are. I know more than you do an and we can manage anything like Jeff Immelt went out the acquire this terrible French Elsom company, and he acquired a bunch of other companies and the whole thing they were like, well, we're g e managers, we can manage anything, and that is just the definition of unearned. Hubris. And just so Harry sounds to me like the definition of private. Equity, basically, which is his idea that like what we do is we buy companies and then we apply our advanced management technology to make them more efficient. And then they become more valuable theory in private equity. You're going to buy cheap, sell expensive and higher multiple, and there was this great feature and fortune that was like there's feature in every business publication ran like what the hell happened to GE features and fortunes. I thought was really good because it really sort of dug into the fact that like Jeff Immelt was always they said he was always the smartest man in the room and you never wanna be the smartest man in the room because you wanna be able to all he was a smart. Exactly. No one could give him any feedback. So we wound up doing all this dumb stuff, and it's just sort of like what happens when you surround yourself with people that you think are just like you who sort of reflect you back to you and you're just in an echo chamber, there's diversity, there's no diversity of thought, there's tons of arrogance and you wind up like GE theory, although can I just say one thing. I'm only gonna say a little golf at a whole other side of the argument. But I think to say that Jack Welsh was completely a failure that I'm going to push back a little bit on that just that's the only thing I'll say. Don't leave us hanging. Like the what GE was when he got it and what she was when he left. Now I completely understand in terms of GE capital and how that blew up and granted, yes, he definitely can be held accountable for that. But if you go, if you dig into the data and even just like basic like stock share price, and you look at what Joe Jack Welsh, didn't terms of the value of that company. I think it is very hard to make the argument that everything he did was back, I think, no, I think I think that's exactly how you may be argument because all he was doing was he was hollowing out the actual manufacturing making things profitably part of the company and putting it all into leverage and finance and stuff, which was great for the ship rice and which ultimately brought the company to the brink of bankruptcy. Right? The right now. You also have the problem. They're looking to say, okay, we're going to focus more back on power, right? But the problem is power is not a very lucrative business right now and moving forward. It looks like it may continue to not be a very lucrative business, so so yeah, which which I. I understand, but that doesn't justify. Hollowing out your power expertise to become a financial services company. Because in a I think with hindsight, that was the number one huge mistake that the Jack Welsh made that he was so obsessed by the Cher price. And he discovered that the way you do the share prices with financial engineering rather next management, and that was that was the core of the death of GE. Right. Well, I'm going to question that just for a second based on not that much knowledge, and I'm going to say that during the financial crisis, most banks, you know, did real bad. They got rescued him bailed out just like GE dead, and now they're fine. So who's to blame for GE not being fine. Seems like Jeff l. melt screw if they had. They had to sell off the capital. That was the thing lately became ally or something and not a Bank just to be clear shadow bang. Yeah. And then and then they had to spend that bit off. And so while the banks are doing fine, doesn't have that shot. Oh, maybe they, their bailout was bad, then that was fine. But why are you saying they didn't survive the other banks? Did? Do you know what I mean? The other financial institutions they crashed and now they're back and it's fine. Why isn't why didn't that happen with g. Happened in the same way that happened with like Washington mutual or something like that, but you rescue at it but you don't exist anymore. Okay. Just if you look at a lot of GE's current businesses, they're all of them essentially are not doing well. Even in comparison to other people working in the same industry. It's not just a matter of industrial decline. It's also particularly GE management. Yeah, they're bad managers, but their whole thing was we're the best managers which to me is perfect slate. Money is brought to you by the business platinum card from American Express with the business platinum card from American Express, you'll earn membership rewards points on virtually all business expenses and turn those points into anything from new supplies. Two flights find a com- space to get in the right head space with access to over one thousand airport lounges worldwide. 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How about launching big media apps and content faster, allowing you to create more in less time with the eighth gen Intel core processor. Many of your everyday tasks are speeding up to like Email presentations. Even your browser can launch faster with Intel, obtain memory. So not that you would store thirty two gigabytes of photos on your computer, then opened them all at once, but you could don't believe it go to Intel dot com slash you could now to learn more for complete information about performance in benchmark results, visit WWW, dot Intel, dot com. Slash benchmarks, let's have a numbers room. Yes. It's Emily what's going on. But while you said you didn't wanna talk about this, but I don't care. My number is fifteen dollars. That is the amount per hour that Amazon will now pay its workers. They had much publicized raise for everybody and everyone's just with the people making less than fifteen dollars. Yeah. And then the people making fifteen or getting a dollar as so at first everyone was like Amazon, so great. Yeah, Jeff Bezos and praising Bernie Sanders for pushing them to do that. And then Bernie funders came out and said, Amazon, agree, wait, what? And then like hours later Amazon workers came out and they're like, well, actually we're getting this raise, but they're getting rid of our bonus and our stock share plan and a lot of longtime Amazon workers will not be getting raisin. In fact, losing money because they were making these bonuses and getting these. They were get one share Amazon stock every year, which is worth a lot of money. My number is seventy six thousand one hundred dollars, which is the net worth of millennial households in twenty sixteen which is last year we have data for. In two thousand one fifteen years earlier, we Jen exes. Had when we were the same age, our net worth in the same constant dollars was one hundred twenty three thousand dollars. So it's come down a lot. That's minute. Yep. Financial crisis at ten years of battle, not fantastic economy, student loans loans? Yeah, that's true. So my number is five hundred million dollars, so I'm not going to go into this entire story, but the Wall Street Journal printed this just kind of amazing story about how the end Golan government was almost scammed out of five hundred million dollars. And one of the main reasons that it didn't work is because of a Bank teller at HSBC in the UK just like a suburban. Someone like the guy was like, can I transfer two million dollars this other account? And the guy was like, he cools up the accounts. Man is like, oh, there was women. The women calls up the account and she sees it bounce five hundred million dollars. That is. When I look, she's used to seeing like Eua twelve pounds overdrawn. Hero everyone. It's a pretty fascinating story which, yes, so so we have a lot of reading for you this week. There's there's the Wall Street Journal article about Angolan. Central Bank says the BusinessWeek article about. Chips from China as the New York Times article about Trump's tax returns. There's of course the axios edge news at what you have to subscribe to. And if there's anything else you want to read into talk about, send us in the Email and let us know what is the Email. The Email address is slate money at slate dot com. And we will give you a whole segment on it and even more reading for next week so that you get to not only listen to your financial news, but you get it the old fashioned way as well by reading about it anyway, on which note many thanks to max Jacobs with producing. We are going to stick around and have a slate plus segment about California, and then you mandate corporate boards and we will talk to you next week on slate money.

President Trump General Electric Amazon New York Times Trump China Trump administration Bank Intel Jack Welsh IRS US Jeff Immelt Comcast fraud America Goldman Sachs Emily bag
Being Patient-Centric and Building Outstanding Teams in Healthcare with Scott Becker

Outcomes Rocket

36:25 min | 2 years ago

Being Patient-Centric and Building Outstanding Teams in Healthcare with Scott Becker

"Welcome to the outcomes rocket podcast where we inspire collaborative thinking improved outcomes and business success with today's most successful end, inspiring healthcare leaders and influencers and now your host so Marquez. All right outcomes rocket listeners, and I wanna welcome to the show today. Scott Becker, Scott has a legal and financial background. I'm graduate of Harvard law and also a CPA is a very humble gentleman. They don't want me to mention, but I will tell you guys. He was at Harvard law with President Obama. He's been on the board of partners for McGuire was law firm since two thousand and eight he's the former chairman of the firms healthcare department where he provides council on healthcare, transactional and regulatory matters. Scott's also the publisher for Becker's hospital review, a nationally respected source for healthcare news, Scott. Is there anything else that you'd like to add to the answer that I may have missed? No saw rip. It can. Thank you, very much pleasure to be with you. Awesome. God Doron was got as you know, at outcomes rocket. We believe that candidate collaboration is pivotal to solving today's healthcare challenges. Also, maximizing the opportunities. So this podcast is a forum where healthcare influencers leaders like yourself can express your ideas and share your perspective on how we could work together to improve health and financial outcomes in healthcare. Are you ready to row? I sure AM and thank you for having me outstanding. So let's start with this Scott out. Why did you decide to get into the medical sector? You know, how I got into the medical sector was sort of more by chance and process than by some great desire to be a healer or to be someone who do the great thing. So I some what you know in being ranked in the rack, I would love to say, I did it because I tried to help people. It was more just area I vowed into I was a young warrior young publisher in. It was an area to help your area that was just. Really interesting to me interesting, and it was not limiting from them in the same reasons. It's not limiting today. Twenty percent of the economy. So it gave you Watson different places to fit into the health world without necessarily cutting off lots of other option the other great benefit of the healthcare world, and you have to remember I come from originally being a young lawyer and wanting to build the help your legal practice, and I had two choices of young lawyer to be sort of a generalist or to be in a niche. I was a big believer being in a niche for whole bunch of reasons. Emma lever and being in mitch's because you're more valuable. You're more useful. But it also in building a practice as a young lawyer. And this ended up being the same concept in our publishing world. And in the media business was again ever want to be at a spot where anybody I met I had to be selling to I wanted to be women at wannabe cocktail parties and try and develop a legal practice. I don't want to be calling on family, man. Offers. So this allowed me to sort of be in the business of healthcare and being helped here without having to be in a spot where I had to turn every single wake Lohman into having to be on for sales or business development. It allowed me to focus and grow without being a generalist and the healthcare world was a beautiful place to do that in remains just an interesting interesting area. Awesome. Now, that's really great Scott sums like that just having that Nanshan not being that sales person just having a place where you could offer value immediately. That's awesome. So what would you say Scott, and thanks for sharing that is a hot topic that you feel should be on medical leaders agendas today. And how are you an your organization approaching that particular topic? I think that's a great question. We spent time in sort of two world it the in terms of the help to world. It's watching great leaders. They cuts come back to the basics of great patient care what works for patience. So when I look at great leaders today. There's a CEO who is warmly the CEO of UCLA. Now, the CEO guys your health in Pennsylvania, David Feinberg, and he does this wonderful job in this constantly changing world of help here of constantly bringing back the discussion in a very real way. The patient care not sort of patient care metrics, not patient care salesmanship. But actually, how do we improve the experience for the patient? And I think there is so many changes going on and so many challenges that at some point the constant reverberation back to patient quality and patient care. I think he's just so healthy for everybody to help your world, but the conflict verb rate too. And he's about as good at doing that and bring that discussion back has anybody. I know that is out there. Awesome. Oh, patient care and improving that that experience of all things keeping the patient at the center of what it is at the organization is doing and how about for for McGuire woods. How does patient care become a focus there or how's that part of the agenda there? Yeah. I think it McGuire was the different animal entirely. Mcguire. Woods is a large sort of international opera with the sows and lawyers that sort of a different game because it's not really and then one small part of McGuire would is our national healthcare practice, which is one of the largest in the country. But it's really a small part of the McGuire was in its entirety are sort of core concept goes back when we discuss thorough. You're in our business efforts. We will get to things being dominated. So being total sort of leaders in the small areas that were in those areas might be hospital systems surgery centers helped your finance private equity investment health care. And then the second thing which comes closer to patient experience. I was very different is being very customer Centric. We look at it. As niche Centric thing dominant are niches and then customer Centric for the clients that are so important to our firm. It's whatever we can do for them to make their experience with the firm as great as possible. So that they remain long term clients with the offer is there well-served, and you know, people have very very clear thoughts about did. My warriors. Give me good advice. Do they treat me fairly? Are. They trying to rip me off all those kinds of things and our goal is to say stay so close clients, and there was a customer experience that the with us for decades. I mean, that's sort of as close as I can get. So we're not really in that patient care business at McGuire woods for sure. And you know, what's got one of the things that I will say is I've been to one of your meetings, actually, several, but at one of them, you know, I just had the opportunity to see you interact with the various, you know, C, suite individuals, and and definitely see your. Customer Centric approach in the way that you just work with everybody. So your actions speak as loud as your words. So really really thank you for mentioning that niching Mitch dominance. And also the customer Centric approach. Awesome. Thank you. And we view it just I mean to follow up on it and the media world for meetings conferences with Hewitt as just read very different constituents that we have to make sure are completely taken care of. There's the speakers that make the meeting go sort our hospital conference might be one hundred two hundred hospital system. Speakers at the event, we have to make sure they haven't experienced it's worth going back to Europe the year. There's a ten dis which are so important everything make sure they have a wonderful experience. They get something out of it that they wanna come back. And then there's finally the sponsors and advertisers pay the bills for so it's being very very focused on making sure all three of those very distinct constituencies have a great experience and wanna make this part of their annual efforts. But it's the same concept of being deep in the specific niche with Ben really focused on who's our customer here in. How do we make sure that they have a great experience at whatever we're doing? That's a great example of how you've used the same model onto the conferences which outcomes rocket listeners if you have not attended you've got to check them out. There's major value at these meetings, and I'll be posting the link to the bekker's meetings at the bottom of the show notes. So that you could tap in and get some value from what these guys are doing. They're really doing some great stuff for healthcare. So Scott, I'm a big fan of the quote, if you do what you've always done you'll get what you've always gotten. It reminds me of Elon Musk's idea of reasoning by first principles versus reasoning by analogy that is instead of making decisions like something else. Or like what other people are doing boiling it down to the most simple, fundamental truths of any problem or topic? And then reasoning up from there to get better and just non-conventional results. Can you give up comes rocket listeners? And example of how you and your organization have created results by thinking and doing things differently. I can try. I mean, what's so interesting to me as you would ask two different question about what or through the rate will to recommend in. This is one of the questions you had thought about our thought, we might talk about and socially. I've come up with a couple of those no relate back to this. There are three bucks. One is by a colleague of Ilan muffs, Peter seal, I think it's sort of a brilliant person wrote a book called zero to one his concept is one of not to be constantly incremental. But to look to how do you create something different and great. So that's one book, and I'll come back to that. In a second. The second two books are Jack Welsh book from way back from my generation of management of people saying if we're going to be in the market, we want to be a leader in that market, whatever it's gonna be. And then the third book is a Jim Collins book is also one of the great business right is our time to go with Peter Drucker in his book was good degrade in the concept of his book wise that you wanna really you can do whatever you want strategically as long as you. Great people in place that the whole core concept and businesses built wrong. Great people. So when I look at these different concepts, the James Collins, one of great people in. The place that that's everything is something I truly believe in completely that you can't winning that great people and all that great ideas in the world. Meaning that great people the Peter THEO concept, who's EON mosques collie and was with them pay pal. And they invest together have done. A lot of things together is a fascinating concept of resonate. Aiming to be incremental is aiming to be great myself. I've always been sort of more of a black earn tack or execution person than what I think is a great thinker. And so my challenges I read things like that in trying pro is to constantly look at how do we do what we're doing? But in a very special way at some special value to it usually go a little bit differently. Our concept in the media company has come down to our constant goal is to teach end entertained, so just sort of mixed rate teaching rated -cation with free entertainment, and we'll get constant questions on a why do you have an Arnold Schwarzenegger as a keynote? Speaker or sugary Leonard or Arianna Huffington, and I have to tell people. Well, that's not really the teaching part of the meeting, that's entertainment and those into them. Sometimes it doesn't, but we constantly come back to this concept of teaching and entertaining. And what I don't know that I have got the capability like an Eline must or Peter field with the great ideas. I won't been better at sort of looking at where often a number to start in the market, but then trying to do it better. And then constant discipline to keep on trying to get better. There's a guy I think you live in Chicago. There's a famous business here in Chicago where the proprietor of it is constantly made improvements every year to it so constantly and constantly tried to get better. I think from our perspective is a company it's building around. Great people it's being niche dominant, and then constantly trying to improve every single year. So not yourself meeting your question, right or not? But i'm. Trying. No, scott. And you know, what you mentioned something super important. It's this concept of blocking and tackling. Really? You know, this fundamentally you got a block and tackle to win a game. And each of our businesses you've gotta be able to do that. And you know, before you even think about doing something innovative. So the value that is is so important and oftentimes, you know, people could get even lost in this whole trying to be innovative. And then they they missed the point and they don't achieve their their mission or their objectives. So I think it's great Scott, thanks for diving into that. And keeping it real for us because oftentimes it's easy to to get away from the day to day blocking and tackling and focus on something just to be cool or just to try to fit in to a mold. No, thank you. And we've we've struggled with that. It's we've always people said like my God that was genius to become an expert or leader early on a medical practice in surgery centers. And I have to remind them. Oh, no, no, no. There was no genius net. That was. Trial and error through three different areas natural and that sort of tick off and they ended up originally building legal practice around that area. But my view of the world was there was literally no genius in it. The genius was not being afraid to try a few different things and stick with them. So one started to show resolve Scott. That's so great. And that really leads to a nice segue into the next question here. You know, it's you try different things until you landed on something that really started cranking for you. So it's not always rainbows and Sunshine's up there. And it's often how we deal with these challenges and adversity and seed back that truly defines success, can you share with outcomes rocket listeners a time when you made a mistake or failed and what you've got out of it. Can you take us to that moment? Sure. And we we've all had of variety different failures. I would say the great values of hey, add were a couple fall. One of the great values was I would get times takes the next role in order. Or take out a role in an organization where I really wasn't excited about it. But it was the next right thing to do in the organization, and whenever I found myself doing that I would end up very flat rate energetic. The goals want my own. They didn't excite and it wasn't about them. And they they almost became sort of quote unquote, resume things rather than things that added any real value to anybody including myself. And so when I look at values, and I've got a couple of specific ones, you know, ended up taking a role and something early on in life that I really had no great desire for the fun of campaigning for the role. But the role itself left me very emptied. They didn't have great goals what do in that role. And I think whenever you sort of put yourself and sort of forget the phrase, and I will hit it right round peg square hole or vice versa. You end up in a bad spot in the flip side is toward that. You've gotta constantly find ways to find things that keep you interested in. Cited. So that you don't end up by default putting yourself in roles that you're not excited about and that I think for most people, especially I'm fifty two now those things get harder and harder to keep on finding interesting things things that excite you things that are challenging and store your passion and doing them at the same time. And I'm not a believer. In contrast to somebody who says, well, I shouldn't do any. I'm not passionate about like do believe everybody's got a responsibility to work pay the bills at our family. Do all the right things. They've got to do to take care of their families were there thank care of in themselves. So I'm not a believer in that. You don't do things. You're not passionate. About course. We'll have to pay the Bill. Do you got to do things? Well, but the more you can find things that really challenge. You and excite you you're doing of just for the money just for the prize. Then you're much more self actualized leader in person, thanks for sharing that Scott. So how would have things worked out differently? Had you the knowledge that you have now would you have said no to some of those opportunities or do you feel like? They were unnecessary part of your journey. I think that's a great question. I think I probably would have said no to some of them for sure have gotten far better than saying no to them at the saying noticed off, and I and I get an flattered in periodically close colleagues with me for advice about how do they do things. They choose to pursue this of that. And it'll be able to come back some of the advice as to what what are you trying to accomplish? What are you really want to do? And do you is that really helpful or not, you know in are you excited about it or not? But I think I probably would have passed a few things rather than got myself. Engage them, you know, and this is the constant challenge of wife is the spend time doing things that you love doing are excited about doing versus things that you sort of end up choosing to do that you probably shouldn't have. But it's just I probably would have been much more aggressive thing. Notice mostly got it. Yeah. I not comes rocket listeners. You know, one of the things that we could pull out of Scott's message here that we all experience as leaders is. How do our personnel missions and agenda align with that of the organs? -sation? And oftentimes is is that doesn't that? That alignment is is not there. Then maybe it's best even though it might seem like the politically right thing to do to take the next step. Maybe it's best that we don't do that. Because it might cost the business and in my cost you personally. So Scott, really a really great message for you to share. Thanks for that. No, my pleasure and thank you. So what would you say, let's say this coin and flip it on the other side is your proudest medical leadership experience or the moment that you've experienced a day. Maybe it's a turnaround moment that became a defining moment in the way that you do or approach since. Yeah. I think my quietly most proud moments are as follows, and I'll take you to what are not my most broad moment. Okay. I used to think in the war firm, or in personal whatever that I will have arrived. If I built this is legal practice, right? Built this for my midway this amount of money or did that it would. I've always found an all those kinds of things will import. Or different reasons. They never whenever you reach any those goals. Leave you with particularly warm or deep feelings of satisfaction. They're just sort of like their numbers, or whatever they're not sort of deeply prouder deeply satisfying moments. What I think is deeply proud moments, and it was sort of it dawned on me started to happen. It's when people that worked for me in the law or starting to become partner and leaders in the law firm who died mentored and working within develop knows deeply satisfying moments. When I look at one of my young partners. Now who now has a person that he's promoted and mentored that woman is now becoming partner those are moments where you say now you've arrived not because of what you've done, but because the people after you have now become promoted spot that where their goals and dreams, you then sort of you actually things you could be deeply proud of. I mean similarly is I ended up in this. Media business. And it's a scary thing in business where you get to the spot where everybody that works with. You can do things that were initially what you did better than you ever did them in quite good. This point could never do them as well as you used to or as well people do when you end up having the, you know, an infrared control freak people like myself when you get to the spot, and you realize oh my God. I've got all these people that do everything better than me. And it's okay. And I'm proud of that and they've arrived in growing the leaders themselves. Those are things are deeply satisfying in ways that a lot of the other things are nice five products. But those are deeply satisfying things that when our people and up rivaling themselves or being promoted themselves in growing, the leadership themselves, you know, as I think route last decade to those are things that have been tremendously proud moments for myself, and the reflects them own that's for sure Scott. And it sounds like. No, it's not all about the dollars and cents. It's about what are we doing to build our our people, and what are we doing to build a culture and just be that that ripple effect? You know, be that initial stone that just ripples out. And touches and helps everybody in the organization around you succeed. That's right. I mean that we find to be in the long run far more sustaining in far more exciting. Like, it's really a fascinating thing to watch. And what you find is all the monetary things. And all those things are nice, and they pay the bills, and they lobby to do things you wanted to. But they're not very satisfying. They're not nobody gets excited but another down in the Bank account. It's important to do that take care of family thing. But it's not exciting. There's no excitement in it. Right minutes in watching the crow and things happen with them. Yes, scott. And you know, one of the things that I admire you for is being able to be comfortable with the people around. You are now just. You know, doing things way better than you can do and you're providing that strategic direction I really feel like there's a lot of leaders that have a hard time with that. And so what kind of advice, would you give to leaders that are in that position where this is happening to them. And so what's the cost of putting these people down, and what is the benefit of an how do you allow them to flourish? There's a great concept it's talked about, and we always fired to it. And, you know, often people like myself who have this mix of achievement orientation in ego and other things have our time with it. Sometimes you're very challenging time with it. There's a concept of a level five leader who's a very very effective leader in the concept from different literature and business books. Level five waiter would be very very effective leader a level six liter would be the next level leader who's made the organization here's she made. During the decision. Great in there. Is one step back? It's become great in the absence of that being the total face in pride of everything and being having to be an every single thing. And so at some point maybe Bill Gates became a level six liter, Steve Jobs might not have ever become a level six liter just simplistically, but still wasn't magnificent later, but the ability to thrive is an organization and to be able to take a step back and realize I mean, huge fan and a sales organization that there's some organizations that say, we'll we're gonna women that person's commissioned after a certain level. We would never want to do that. I never want to stop somebody who wants to perform once they're cheap as long as they're doing highly ethical way. I mean similarly if I got people that want to work, very hard, they're free to do. So, but I would also sit down with them and say the big benefits in the long run are not just working that are. But they're also doing these other things on the side to it up straight. Your own situation for a leader. I guess the take home at I really came back two years and years ago. Why was the concept of always trying to hire people that are as good or as bright or brighter and better than yourself at? And this is sort of take 'em concept in this is there's an old adage that nine tire seven. So highly performing people often hire people that they feel won't show or threaten them and an organization has to be strong enough that people realize what if you hire somebody who's brilliant and does great and does great work and moves Bill Ford. That's not gonna harm you, absolutely, Scott. So ultimately, Scott just hiring a level above you to really bring value to the organization. That's our ful. Thanks for sharing that my pleasure. Thank you. So tell us a little bit more about an exciting project or focus that you working on today that maybe our listeners can benefit from or learn from sure, and as you know, we're in the event in meeting business as. Part of the media company. Swimming's most excited about is how much our annual meeting that we do each April has grown this year were example with torn thirty hospital executive speaking at the meeting, we've got Arnold Schwarzenegger. Jay Leno is entertainment at the meeting. We then have some of the greatest CEO's in the business. Toby Cosgrove who's been recently in the news. Theo Cleveland, Clinic, speaking, Marna, Borg scrum. The brilliant CEO from Yale Newhaven hospital speaking, Rodney Hochman CEO of the providence health systems together with the magnificent CEO from UCLA Johns Hopkins, and it's exciting for us to see these things come together. If years of doing this into a different level were playing a game. It's very fun very status buying and just created something exciting and interesting. So that's something. We're really excited about right at the moment. That's outstanding Scott and outcomes rocket listeners the meeting that Scott holds as I mentioned before is excellent. And when you. You have two hundred thirty hospital executives and some of the greatest CEO's some really great speakers. I had an opportunity last time. I was at the meeting to actually meet President George Bush, which was really fun and exciting. So you never know where you're going to run into at these meetings. If you haven't been to long, you gotta make it of the shirt of put a link at the bottom of our show notes said make sure that you are aware, and that you make it out there because these are the movers and shakers in health care, and Scott Becker and his team are getting these thought leaders together to share those thoughts that are going to help improve our health care for today. And also tomorrow, actually, exciting Scott. Thank you saw. We're very excited. But we've got a great. It's just it's very interesting. We've got a great CEO of new publishing companies back give my partner in it. That's just an Magnusson job leading it and growing it at unfortunately while from two we've got a back. Give us in a former mentor of mine who now runs the national health care department, amber Walsh's also backed with that it's been. In fun to watch them grow these different things, they do and you're surrounding yourself with wonderful leaders and they're doing a great job. So Scott, let's pretend that you. And I are building a medical leadership course, what it takes to be successful in medicine today. Let's call it. The Scott one one course, and I'd like to write out the syllabus with you. And so let's let's go ahead and do that by I'm going to give you a couple of questions and get your brief answers to the following questions. That's on good. I'm going to try, but we got him up with a better name for the course. But I'm gonna try. Yeah. Awesome. So what is one key driver to success in today's complex healthcare environment? That's a great question. They wish I had a Grady answer, it's such a complex area. I mean, it's easy to go. Back to always keeping the focus on patient care. But it's such a complex world in business today that I'm not sure that I've got a great answer to that other than that, we conflict them back to which I was going to build a, medical course. I'd wanna build it around. You know, great speakers and a great producer of that course, learning from those that have done it. So that you could reproduce. What they've done love it. I think I would start with just hiring great people to run it. It's not like we're constantly trying to put together. Great business courses in health care. More business. Focus on clinical, focus, then I've got a good feel for but trying to put together a good clinical curriculum something I would be at a loss for not sort of for not a problem. Yeah. But you get the right people to help put it together. That's what we would start. Excellent. So what would you say is the biggest mistake to avoid and effectively leading a successful health care organization. And maybe you take this from the angle of law firms perspective. Yeah, I think the biggest mistake devoid. Really it all comes back to it starts with having the right people in place, and to me everything is about people. If you have great people who are great in Essex integrity, intelligence drive, motivation, then you could build and do great things without those you can't. And so like, we have so many great young and middle aged and old people that work with us in different sectors. What I think is fascinating is when people sort of criticized the younger generation about work ethic or this or that. I just think constantly the people that we've hired have missed that memo because they're all highly motivated, bright driven and fantastic. And I think this concept of this generation is good. The just as bad is all lost. Because most of us. We don't need millions of employees. We need twenty. We need a hundred we need to hundred and out of the reorder million people in our country to find two hundred great one it's just not that hard. But it takes a lot of work. He on providing an atmosphere and environment. I every level that thorough excited about. But I think if you have great people in place, everything else can work awesome. And what is one thing that you must do to differentiate your leadership style from the crowd? I think the this goes back to something that is and I'm not sure this one thing what years and years ago when I was a first young lawyer in this goes back to the late eighties or the the model. Was you yell that younger associates to get him to get stuff done. And I must have been thirty time probably too harsh and twenty five twenty six twenty seven year old, but this was sort of the model of the work. Maybe it's thirty two and one. One of my young lawyers who very very smart person had the wherewithal to take me to side to say every time you yell at somebody and not just harms that person, which is fine because you probably felt that that Brazil is doing their job. But it hurts the entire environment that will working in it screws up the entire environment. And to me, it was a one. It's a great gut for the person to come talk to me because of the time us a young partner. He was associate and took me aside and didn't in a private way and said it just a bad way of handling things that it was I opening to me in a learning experience for me and to my credit. I was able to from that moment on get yelling out of my method of leadership entirely. And I think without that person in his name was Marcel corpus that written about this before without him having the wherewithal talking separately. And explain it to me, I would have kept in the model of how many other people were managing at that bayton time in that world thirty years ago or twenty five years ago. To me that moment, I made that change was I opening in terms of my ability to be engaged in much bigger organizations and have a leadership role. That was useful. I mean, the of what you can get a put out of somebody very short term, but younger screaming at them. But long-term that you couldn't build teams in the concept of go with best and brightest is nothing gets done in today's world without teams, you might need an individual driver or fire-starter or Hyper-motivated person to push team along, but nothing gets done in today's world that's of any significance without there being a team. And I think that's just is completely truly in the media business the wa- business. There is no one person shows. There's just not anymore even like the greatest greats like Michael Jordan could it when title so they brought along Scotty Pippin horsecrap and others anything in business. It's never been more. True. Everything is about teams. And then we'd IRS those teams are so important, but probably the key. Moment for me. And the yelling thing, I might have been self satisfying. It might have been a model I'd seen, but the one social that pulled me aside and said, you know, that's a bad idea that screws up the whole environment was an eye opening experience for me that my credit I was able to change and stop it on dime. And never do it again that or I really I mean, I shouldn't like once every couple of years once every three years like yell at somebody. And when I do I'm actually like almost happy, I still have the ability to do it. But it's, but it was a learning experience for me is how stupid out outback tactic it as a way to get to this. And Scott, you know, what I observe and hear from your comments is number one you listened right? You were a leader that listens. And number two. You are inciteful enough and critical enough to say, wow. Maybe this person has a point. I'm gonna change course here and see how it works. And and it's done wonders for you. So really great. You shared that with us. And it shows us really those those two very important messages. Listen and the able to change if you feel that makes a difference. Thank you know. It's a fascinating life experience. Really was that's great. And so the last one here in the Scott wanna one course was about the books, and you had mentioned those earlier and those books if I remember correctly, Scott, it was peer steal zero to one. Jim Collins, good to great. And what was the title of the Jack Welch book of spacing on the title of Jack Welsh book? Yeah. Well, you know, it's still speaks and writes, something like that. But at the time growing, but my generation he was sort of the premier CEO of our generation in his queer concept. Was you only wanted to be in spots where you could be a leader in the market. And I think is fearing on that, right? I remember that at the end of the day, you want to be one or two whatever market you're in as much as that gets pooh-poohed today or knockdowns as an idea as big as. Completely correct. Is there was a business today? And it resonates, quite frankly with some of the Petersfield comments got it. That is awesome. Well, sign me up for. That course, Scott. I definitely a few offer that I'd be signing up today and outcomes rocket listeners. I'm sure have gotten a lot of value from you just sharing these points, and I'll be including all the resources in the show notes. When you listen to this episode. You can go to WWW that outcomes rocket dot com and just look up Scott Becker in the search bar and it'll pop them right up. You'll be able to listen to this episode and also see all the links to the resources and books before we conclude Scott, can you share one closing thought, and then shareware outcomes rocket listeners can get in touch with you. And then we'll conclude. Sure, thank you know. I think the the great challenges to constantly find yourself in positions that you're excited about that. You don't have to artificially create the excitement, and that's one of the great challenges in leadership. In in careers. And then why is constantly trying to find things that excite you? And we'll get you out of bed and excited in purposeful. You know, without having to put crazy effort into it that you really wanna do this. I deciding to you that's one and then people can get in touch with me the easiest ways that call me at three one two seven five. Oh, six oh, one six or I could always be emailed at aspect or at McGuire. Woods dot com or aspects healthcare dot com and always the why did talk to anybody, and it would have to say or give my two cents that cetera. So just a pleasure being with you. Thanks so much for writing Scott. Thanks for your time and insights, and we learned a great deal from you today. And we really look forward to putting these ideas in the practice and stay in touch with you. Thanks so much Scott take care. Thank you, sir. Thanks for listening to the outcomes rocket podcast shooter. Visit us on the web at WWW dot outcomes walking dot com for the show notes resources inspiration and so much more.

Scott Becker CEO partner McGuire Jack Welsh McGuire woods Jim Collins Harvard mitch Arnold Schwarzenegger Europe President Obama Marquez Doron UCLA Lohman Watson
Success in the Startup World: Why Good Leadership Matters Most

Knowledge@Wharton

18:48 min | 2 years ago

Success in the Startup World: Why Good Leadership Matters Most

"Podcast is brought to you by knowledge award. Leadership is one of the more. Vital components company can have former Cisco systems CEO John Chambers. Those this firsthand he spent twenty years running the information technology giant now holding the position of chairman emeritus. But is now also running his own show as the founder and CEO of J C, two ventures. John is also the author of just released book called connecting the dots lessons for leadership in start up world, which looks at the most important qualities of leadership in this ever changing world and John joins us right now on the phone. John welcome, Dan. It's going to be a pleasure and thanks for the opportunity to talk with you today. Thank you, his somebody that spent six years of my life working in baseball in West Virginia. It's nice to talk to another west Virginian. I might have got your autograph. You know since senators that was back in back in that day. Thank you, very much to go and catch foul balls and Selm that to be able to get into the game the next day when as a young kid, thank you very much for coming on the show. So when you look at today's business, and you look at that leadership. What are the components? What are the things that you think are the most important? We'll I think in terms of the component for leader. That's leading the large organization. Let's say a CEO start up or see over large company or head of a group. It's ability to articulate a very clear vision and strategy where organization is going that is different shaded and sustainable it's ability to build a great team. And that includes developing the team recruiting and periodically rechange in the team. It's culture, which I did not understand how important it was perhaps when I first became CEO, but you never have a great company without a very strong culture, and then the fourth element, which is more important now than ever in is communications and ability to communicate to all your constituencies each of the elements. We talked about in terms of how is your leaders? It's results quality of team. Do they really understand the industry they're focused on their communication skills? How will they walk the talk the culture if you will and ability to outline of vision, and then remaking happen. Well, let me ask you, this you mentioned culture because because culture, really, I it's interesting because it is a concept that really has come to the forefront in the mindset of businesses basically in the last decade or so maybe even even a little bit of a shorter period of time. Why is it do you think though that it has taken this long for culture to be such an important component that leaders think about but companies think about as well, I think it is the differentiator both in terms of the type of talent attract how you keep and how your customers view you. I came into it kind of backwards. If you will at Cisco, I didn't understand the importance of culture, and today culture and strategy to me are equal in terms of importance. And at Cisco one of the reasons that we were so successful and. We literally were one or two and sixteen of eighteen product lines went from seventy million in sales to forty eight billion while I was honored to be there. And people would say we had one of the strongest cultures in not just Silicon Valley, but in the country, and we outlined the culture of giving back innovation excetera new every single illness of every impli that was life threatening in the company their spouse or their children was often on the phone with them even on Christmas Eve, if that's what it required would move heaven and earth to help them when a customer had a problem, we put customers first and we walked the talk because they had and so listen to every critical count in the world every night, we paid our management on customer satisfaction. So we match culture to our whole fundamental strategy. And I think people underestimate that. And it's one of the things I love with the new startups when you get a new young CEO, they get visions to add a t they get the team, and they get the communications and communications another. Area this changed dramatically in the last decade cultures. Usually what they pick up the slowest. And then the fun thing. Dan is when they get it. And they see the results with their employees or with their customers you, and it's just it's part of the teaching and being a mentor to these young companies. Then when when the numbers come out about startups and the success of startups. Why do you think that the numbers of the percentage of failures of startups is so high then all I think it's always going to be the failure startups or probably seventy percent. Plus, the most successful venture capitalists and the world in terms of their funds returning often have more failures than the average inter campus because it take more risk the one or two home runs out of that port folio carries the whole investment. I think this is a period where you're going to disrupt or be disrupted, Dan in simple terms. I believe that forty percent of the large companies in America were around the world would disappear in the next decade because of digitisation and the speed of disruption and artificial intelligence, and and different business models. And so I think the disruptions actually going to excel right? Not worry in the US is the reverse. I think it will continue to have failure rate of startups. And that's just the natural. Process, and you shouldn't be in them. And that's you understand that's going to occur. And it isn't are you gonna make each successful. It's just if you missed once then get up and go do it again. But it's ability to really reinvade yourself each time and to take the risk my problems, the number of startups in the US is almost twenty year low we used to have ninety percent of the world's venture capital than eighty. Now. We have fifty percent. And if you watch the number of AP PEOs, which are really the future indication of job creation this country, and they're kind of tip of your iceberg. If you will during the nineties it was four hundred five hundred year and reach because seven hundred this year, we're excited that it's going to go over two hundred for the first time in three years, but we're trying to generate twenty five to thirty million jobs in the next decade, which we need to. And then you're gonna have a certain number of jobs that have to be created because digitisation destroy others. We've got to get the start up engine going much faster. So. My worry is not the failure rate. My worry is there's not enough in the pipeline. And we aren't skilling quick enough. One of the things you talk about in in the early portions of the book, kind of something you learned as a young boy living in West Virginia and fishing with your dad is the concept of staying calm under pressure, and you tell fantastic story about a fishing trip that you took with your dad wanted you to to relate that story back back down on the river there in West Virginia. Well, it it's fun and you being from West Virginia, you actually know where that river is. And you know, it's it has very rapid runoffs in certain areas that are dangerous to swimmers etcetera, and I was six years old fishing with my dad, and he shared with me, be careful not to fall into the river. This section. It's a good place to fish, but it's very dangerous in terms of its depth and its its speed in the Rapids, and he was fishing about one hundred yards above me. And what do I got to close to the edge? I fell in and I got swept away. Immediately and my dad yelled at me to hold onto the fishing pole. And he kept going that seem to this day running through the water down the side with water going everywhere and each time at at surface and get a grasp of air. I could hear him yell onto the fishing poles and the fishing pole wasn't that nice Opole kind of ugly, actually. But if he was more concerned about fishing pole. Obviously, I was not in a problem. And so I held onto it and I kept grasping for air. And he finally got below me. I'm the Rapids. And then swim out got me and pulled me aside. And then he sat down as my dad is often done with me and kind of taught me a lesson in life. And he said, John when you you fall out into the Rapids. If you try to swim against the current you risk drowning, and if you panic you also risk downing. So what you have to do is deal with the world the way it is to allies that you have to go down with the current. And then look for your chance to get out of the water. And then learn how to get out. And then is I got really? Laxed in calmed down. He put me out in the Rapids. And let me do it myself. And then we took us up to where we started fishing, and he let me fish and mom didn't know this. But he again when a hundred yards above me to send the message that I learned the lesson. And I think that's the lesson in life for many leaders is it's how you deal with your setbacks your challenges. How you remain very common depressure, even though you realize the gravity of the situation. And how you make sure that you're not swimming against the tide of the current in a way that you have no chance to win. But look for how you deal with the situation and get out and then progress from there for it does that make sense. Does it absolutely does? Judge abors is our guest. He is the author of the book connecting the dots lessons for leadership in a start up world. The book is just out utes available in bookstores and online for your purchase right now. John is the former CEO of Cisco systems and now the founder and CEO of JC to ventures. Your comments are welcome at eight four four. Worton eight four four nine four two seven eight six six or if you can't get your phone. You can send us come at on Twitter app is radio one thirty two or my Twitter account, which is at Dan looney twenty one again, the book is connecting the dots lessons for leadership in start up world by John Chambers. The former CEO of Cisco systems, you know, I it's interesting John because you mentioned about about failure. And failure is something that you have said, and we've talked to some people also believe that failure in business as a leader. It's not a bad thing. I think there's this. This mindset how they're that. You can't fail at anything at any point in any period of your business career. But that's just not the case, you can learn so much from an occasional failure. That is true. And if you watch I think, you're more product, you're setbacks than failures and anybody knows you. They've never had failures or setbacks either didn't take any risk at all. Who are is not being honest with you. And I would argue Jack Welsh actually taught me I think he was awesome meter in business. Looking back report decades ago, it was it kinda just goes on a run and many people viewed as as the top leadership team in America. And we were coming up on the most valuable company in the world in Jackson, these at your you've got a very good company. And I knew he was about teach me something I Jack what will take. And he said, it would take a near death experience before you had a great company or your great leader and term I didn't grasp then when two thousand one and the dot com. Bubble hit accurately understood her how also at that time much from own president Israel over the years. The leaders remarkably lonely. How you handle your disasters? Or your setbacks determined food? You are moving your successes and the way I get that across to your leaders. And then I'll come back and follow on the point. Specifically is right about has been listening to spot. They have. Brought they have. Oh, you more concerned about how your children handle their successes of getting a good grade in school or scoring a goal and soccer game. Or you more concerned about how they get knocked down. Things. Don't go their way, they have a problem in relationships except for how they deal with that. And the answer is clear dates affect and once you learn how to deal with a setback, you can coverage much more than life right for me in dyslexic. It was a challenge even though both my parents doctors, my teachers actually in grade school, I wouldn't graduate from high school much less beyond and because I had spatial help in dealing dyslexia. And not to I learned how to take a weakness and everytime, actually, make it a strength. So as you learn for the setbacks those failures, that's how you get stronger each time and the best teams and Silicon Valley contains fed not exceeded before. But learned and burned how to come back, but you're a great one. Because when I talked to the leader. France in profanities nation, I show public radio. Or in the medium. I focus on French to lead in terms of innovation startups in Europe. Very after realize there's going to be a high fail rate failures with courage, not an entity, but you can't come by. And we were very nor back, and it was fun watching eventually this where such a major con. Yeah, they moved. The worst Europe to start out with about one hundred thirty nine forty eight year for decade hockey. Tech venture about two seven hundred forty this year. Right. So you send me thinking people not only understand the importance of entrepreneurship and startups in the job creator for all major countries around the world, but also the willingness to fail which was a mess. Successful indefectible. You also talk in the in the book a good bit about I in terms of being a leader that somebody has to be able to do to embrace change and embrace innovation. Obviously the innovation part. I think is is is a well-known quantity to what we're seeing in business today. The embrace change is still something that that some companies are have a hard time dealing with. They get on this pattern of success. And they they they kind of ride that wave as much as they can until that wave, you know, ends. And the problem is that a lot of times, you know, they they don't they're not able to get that next level of success the end up hurting their business more. So if they weren't somebody or weren't a company that looked to make change along the course of success. The agree. If you think about it in this time period digitisation is going to destroy business models and companies that have very rapid rate. And I believe that forty percents you can use the fortune five hundred or any number you want companies today won't exist in ten years. And what it really says is the companies if you're not disrupting somebody else, you're gonna get disrupted you grow your die. And you gotta have the courage to change. But the most difficult wants to change to your point, Dan, the ones who've been most successful. And when I talk about what causes companies that fail. The number one reason is they missed the market transition usually a business model change combined with technology change. But the number two and they keep doing the right thing too long. So it's CISCO's an example would just add them. But I down here we were very except for our company we had courage to go into every switching to do. So. Important what that really means. But we went into an area that others had done, but only in single products, and then we went from dotting and switching into wireless capability in in to voice in the data center and into security, and so we kept reinventing ourselves, and as we did did our core product, get better our outcomes got better our competitors made mistake of pain, but the product is opposed to book outcome, and so its willingness to change to say, we aren't techy company building bothers, but we found any bit of synonymous with the internet. That's going to change the way the world works in place. And then we are that vision and made it happen. And we were one or two sixteen of our major eighteen product areas. When I was there at Cisco for that twenty five years, so it's the willing to disrupt put a different way all my competitors. At the beginning, the wealthy synoptic the cable Tron equals good companies. Very good. Leaders very good products. But they've been disrupted. They didn't get market transitions. Right. And even big companies not be 'em HD deal. And then who came at us. We're not successful. Because we kept disrupting and Barker transitions not doing the right thing. Too long. Perfect equa spot. We made mistakes point you get strong mistakes, you from you go again, I wonder if you think because of how I in this day and age we have so much change in technology and big data that is playing in is that whether or not we're almost going to see a mindset change among leadership that you won't see as many leaders missing the missing the ball to degree missing that change. Do you think? That's that's a possibility. Now, I think you may be right. But I I really think it's like I think we are trained to do incremental improvement. Not think exponentially, I think the changes changes Corrine so badly that many. You leaders when they start to change without outline at Christie's in Hispanic you. And how they're going to get there. They won't play out the out. They won't make the press release. What they look like three five years out and execute with the speed is needed. So actually think the breakage is going to increase both of system properties start startup companies. And that creates opportunities also says, it's different mindset now as young leaders, the millennials come out of school and they're trained more in this than overtime booking out at decade fervor, then that might very well be the case that at the present time, I think the actually be more challenges and successes. I hope I'm wrong on it. But that's what I've seen over the years. John unfortunate at the top of the hour. Thank you for coming on and talking about the book all the best with it. And look forward to talking to you again down the road van. It was a pleasure. You have a great day. Thank you, John Chambers. Former CEO of Cisco systems now chairman emeritus of the book is. Connecting the dots lessons for leadership in startup world. The book is we mentioned just came out. It is available for you in bookstores and online for your purchase today. For more insight from knowledge Morton, please visit knowledge dot Morton dot U, Penn dot EDU.

John Chambers founder and CEO CEO Dan looney West Virginia Cisco Rapids chairman emeritus America baseball US Selm Europe Jack Welsh J C Twitter
Bringing Soul to Quality Control | Lean SIx Sigma Blackbelt Master, Donald Meador

Thrivetime Show | Business School without the BS

29:15 min | 1 year ago

Bringing Soul to Quality Control | Lean SIx Sigma Blackbelt Master, Donald Meador

"Zee On today's show. We're talking about bringing the song to quality control. Your loved to rhyme don't you. It's a fine fine I do too. I do like dry them all the time. We're talking about lead six sigma how to become a black belt. Master of non disaster. Let's do it. I'm ready within. America could treasure by the name of Dawn. And I'm ready. I'm ready I'm ready. You're ready ready already. We're already and now without further ado. Let's get get this shindig started some shows. Don't need us a liberty to introduce this. Show the big show. two-man eight kids co created by two different women thirteen multimillion dollar businesses. Ladies and gentlemen. Welcome to the time shall do. Yeah Yes yes yes today. We're doing Mugabe. What's what come on drive time? Show how are you doing excellent happy to be you know a lot of our listeners. Go on spotify. And they look at the titles of the show and they have little debates about Is it meter. Is it better clarify how you want your last name to be pronounced for our listeners. Out there it is matter. I think it's easiest to think better is better matter. Header is better and also rhymes with Cheddar this just in now. Donald survived mergers promotions reorganizations uh-huh downsizing countless changes in corporate America. Could you share with us. I mean you're a guy who's lead malti million dollar projects and was selected actually to complete eight a two year program to become a lean six sigma certified black belt. Could you explain to us. What is a lean six sigma black belt? Well the title is a lot cooler than it actually actually isn't reality but basically what it is and and for most those people familiar with you know. Gee Jack Welsh and the lean six sigma approach you know really originated in manufacturing but then all the great business minds decided we can apply ally this to every single thing in the world and so what they did is any process that exists in any organization. You look at it with a fine tooth comb. You look at every every single step in every process you have whether it software development whether it's real estate leasing and you look at time you throw some statistics at it and you try to see is. Is there any way we can shortness process. What are the metrics? We need to be measuring to actually gauge our success. And so what we did is we spend. Two years is basically not only learning the methodology but actually applying that honor prod- projects and actually become certified. You have to successfully complete and show success us into projects before you can officially quote unquote graduate. What I'm GonNa do is I'm going to tee up real scenarios that our listeners would would would run into a daily basis but I'm gonNA use my businesses so you can pick on them and they're going to get into her new book so one of my businesses is called elephant in the room and we cut hair for men all right so it's like a country club for men's hair if you can picture it it very high end and we? The average haircut has to be cut caught within twenty seven minutes and currently with the four thousand members. We make a mistake. Three percent of the time. Okay now the other business. I don't own it anymore. Was a bakery a beautiful bakery one a lot of awards. It was the number one bakery in Tulsa Oklahoma. And we made wedding cakes and I wanted t.f each one of these is kind of a lean six sigma battlefield so I went into a haircut facility. We have four thousand members and we're open open from eleven to six everyday. GotTa get all four thousand guys in. We have six days a week and you know the average haircut has to be twenty seven minutes and you. I know that we're making a mistake. Three percent of the time. How on a practical level would you go in and help? Maybe somebody's business. Make that more efficient absolutely absolutely well. The big question is what are you actually trying to optimize. That's the real question and and one that is fraught with complications. Because whatever you measure is what you improve and there's a whole lot of moral hazards if you choose to measure after the wrong metric right. So what if you decide. I think hairs cuts should be done in twenty five minutes What's that GONNA do at a human level? All right. You're going to rush. You're going to try to get faster. You're trying to get more more customers in the door. Yes your revenue will go up but also that mistake percentage will go down right so oh you can't hold everything perfectly still the same token if you want to decrease your error rate. What you're going to have to do is what if it's now twenty seven and a half minutes while your air rate went down but your revenue also went down? And so that's why it's so important on the onset to really sit and think through this and say okay what is the metric. We're actually trying to influence. It's so let's say in this case because we're open fifty three hours a week and we can do to haircuts an hour or open for four point three weeks a month. We've got about four hundred and fifty five five hours. You know to get in all four thousand haircuts as we can do about eleven twelve haircuts a month and we really With the three locations. I'm very confident that we don't want ever have more than that number of members there's for the quality you know we wanna keep that experience tight. Let's say that you're dealing with The bathroom not being cleaned regularly. You know we. We have an interval the alarm system there every half hour clean bathrooms essentially but let's go into a small business in the bathrooms. Perpetually dirty. You know it just. They'd have a hair salon. It's beautiful but the bathroom is always dirty. The towels can be folded on time. And there's everything's always behind the average small business owners always behind. They're always a little bit budget. They're always on on the verge of not being able to make payroll always a little behind on the taxes help somebody using sigma lean. Six sigma become more proactive. Yeah absolutely absolutely and the only way to do that is one of the things that lean six sigma might not potentially be quite as good at is the human element right so the challenge. Is that the reason. Those tasks or behind is because they're not incentivized right so there's not really that big of a reason to go clean the bathroom right because you don't get paid for that right you're GONNA get paid for serving customers Moore's or haircuts or or whatever it is you're doing a bakery and so there's no proper incentive to actually keep the bathroom clean so the only way to do that is to change change the way the process has actually done from an incentive perspective so that employees actually want to keep that and now there's lots of ways to keep that bathroom clean. There's lots of ways to do that. whether it's part of the pay structure it's part of whatever that's really more challenging. Those type of scenarios is not necessarily a process problem. It's a people problem because there's really no purpose to that what happened. I mean what really happens if I don't clean the bathroom. Yeah my boss is mad but I kind of got more haircuts or I got paid the same same and so that's one of the challenges is the process is don't necessarily technically have to be done to get their job done. And so that's where you were you run afoul of some of these kind kinda side tasks I think about it. You know it used to wait tables you know they wanted you to roll so much civil. Wear and do all these things. You didn't make any money doing that right. That's not really part part of your day to day job in part of your income and so that's the biggest thing is making sure as part of their daily process. They have to be incentivized to do that. And understand that part of their pays commiserate misery with that okay. So let's talk about Jack Welsh for a second reference to Jack Welsh arguably the number one. CEO of all time who grew g by four thousand into percent during his tenure GE. He did okay okay. He talks about the kick in the hug as it relates to incentivizing. Do you believe in kicking the hug. Do you believe in an exclusively. The the the Ninja kick the within the black belt kick. Do you believe in the Black Belt Co blackbelt hug and tell us about what your thoughts are on the incentivizing kickin hug. Yeah yeah absolutely I think you do have to use that the challenges and to be really a great leader in a business. Is You have to individualize right. That's the most important. Thank you have to understand whether the kick or the hug is actually. What's going to make them do their job? Because it's not the same for everybody you know. I've managed some pretty huge teams and certain individuals. They needed to kick almost every day. They weren't gonNA do their job without it right but there's other people that if you did that they're just going to open quit right. They're just they're not gonNA respond to that. And so that's why you as a leader man. You've got to sit down and you've got to talk to these people. You have to understand why there are work. Every day you have to understand what actually intrinsically motivates them and do. They need the kicker the hug they both work but they don't work on the same people. Can you share about how many people you've managed at one time or how large of an organization and you've had at one time just to give our listeners who've yeah I think at one time the most people I had directly in my command was nineteen direct reports in also had to offshore divisions as well at the same time And so when you look at that is probably upwards of thirty people and they were all Paul mostly remote They were in six different time zones all across the country so As bad as spread as you possibly can go all across the world really because India and in California and just all over the place now for the listeners out there who aren't aware of this Lee Cockerel been on the show multiple times who wants managed Walt Disney world resorts and forty thousand as an employee forty thousand. He said you should really. You know I mean if you have more than twelve direct reports. You're kind of a Ninja. I mean you. That's that's a tough thing to do. So managing nineteen direct reports can be quite challenging now. Your new book is called surrounded by insanity how to execute bad decisions. Because there's a question there tell us about your new book surrounded by sanity how to manage how to execute bad decisions. Yeah absolutely and and and that really gets to What I like to call corporate reality? Because the truth is if you're on a large team and you're not the guy if you're not the CEO of your company more often than not. You may be executing somebody else's idea you're executing someone else's decision it gets handed to you to go lead a team or not even do yourself and there's so many times that you don't even agree with the direction. You don't agree with the decision and much more so you might actually think it's going to fail. What do you do about that? Nobody trains you for that. Are you going to go talk people in the do something you don't even yourself believe in and so that's really what it's about is how to survive in that type of culture. Ultra and how do you. How do you do that right understanding how you know the results aren't what makes you successful? It's the perception of your results is where you actually get success in understanding how to build that and understand what it's GonNa take to survive win. Maybe you don't quite agree with everything that's going on and everybody out there. WHO HASN'T I've been married before Mister Kanye West recently explained during an interview that he said you've heard about dog years. He talks about how you know dog. A one one year for a dog like seven human years as it relates to their life expectancy and he's at one year of marriage is like one hundred years you know and so it wouldn't have been married for five hundred years. I think a lot of times the challenge with with marriage or business snus marriage or partnership is impossible for everybody to agree on everything all the time. So we're working for right now. We're moving forward with the premise. That maybe your boss is asking you to do something unethical. Maybe or illegal but you don't necessarily agree with it so chapter one of your book is called. You've already lost one. Is this chapter all about absolutely it almost follows the stages of grief But basically what I've seen over and over again is is when you hear these terrible ideas or you're asked to implement them the first thing you WanNa do is scream. You WanNa fight you look around your does no one else realize this is a terrible idea and so you fight back you say. Oh we can't do that. We need to do it this way. We need to do this way. But but here's the truth. The decisions already made it's over. It's gone it's done by the time it gets to you. There's no changing anyone's mind. And so that's the first thing you have to do is just accept the fact that okay this this is the direction we're taking now. What and most people can't do that? They continue to fight it. They they do all these rebuttals. Try to change people's minds but here's the truth you. You cannot change people's mind once it's already made up. That is a psychological scientific fact and we have to understand that you know. There's there's a movie mister. Deeds that Starring Adam Sandler perhaps one of the deepest American philosophers of our generation. Adam Sandler and he in the movie he becomes uh-huh he ends up becoming the head of a company. His grandfather. I believe dies into now. He's in charge of a major major corporation. The problem is he has the mind of a third third grader. And I'm GonNa keep just a brief little audio from from the movie so you guys get an example of what. It's like to work for somebody who maybe doesn't have it all figured out here. Let me keep the audio here. This is the scene where Mr Deeds is explaining to his Butler that his foot is black because he he had bad frostbite and he's six instructing one of his employees to hit his foot and feel that what else she got a fireplace. Poker right there and just whack my foot absolutely after is GONNA be fun. Just grab it all my friends dude. When one of his employees to take a fire poker and hit his foot with it? Come on give it away. Nothing really. Isn't that sick then. Feel it in that awesome. Go ahead. Nothing the Lincoln. Aren't you chopped up food. Yeah that's it why. Why would you do that to me? I'm just kidding. And that's the kind of stuff. Sometimes it work right your boss just doing dumb stop. Your boss wants wants to take you to lunch. Your boss wants you to go to some corporate event your boss when she'd go talk to some account that you don't need to talk to your boss of bosses are obsessed with corporate travel. I'm sure you've seen this before. Oh boss loves to send you on a plane somewhere they just love. You WanNa play great win. You have multiple bosses right in one. Aw Man we travel a bunch in a new boss comes in three months later and says watch you travel so much. I don't know about these expenses right I used to have. I won't mention the name of the the company but I had a major consulting gig with a huge fortune five hundred company and they felt like boots on the ground was the key to success so they would fly me into Denver Fleming into California flying into Florida. Schwab me into fly me in and I would get there and I wasn't needed for the meeting. I've never really asked asked mini thing and then we would have a lunch. They would send me off. And I'm like what was so talk to me about this. Chapter Seven of your book is called. What if you you are wrong? What what does this chapter all about? Well you know I spend most of the Most of the book talking about how to handle when you're surrounded by craziness easiness in everyone else's nuts However I think it is important to take a step back and realize you might actually be the one that's wrong you know what happens pins if you're the guy that thought everything was a bad idea or even came up with a bad idea and everyone's looking at you? What what are you going to do then right? And so that's that's the biggest thing is understanding how to communicate the fact that you're the guy that screwed up instead of everybody else. That could be talked to me about how you gain that self the awareness of and you worked in corporate America for a long time. How do you go about gaining that self awareness that maybe you're wrong? Well I think the biggest thing is is blinds communication right. You can't do this in this bubble right. You should be constantly talking to your peers talking to your team talking to your boss you have to be reading. The wind is what they say in understand and looking at the metrics and looking at things and you start to see things turn. You're like wait a minute. If I'm the only guy in this company full smart Mark People that I know that thinks is a bad idea. It might actually be knee. I might be the common denominator and so when you do that. That's when you gotta start to say. Oh Oh what have I done to back myself into this corner if I fought against this. That's when you've really got to start over communicating with people telegraphing. What's going on with your projects Jackson? Everything and talking with your peers to say okay. Do I need to be doing any sort of damage control. Was I the guy that was wrong. I've read a lot of times. Oh my run. Businesses or hundreds of people communicating with each other. I find one of the biggest challenges is that and I'm a podcast host. I communicate for a for a living here. I found that a lot of times if you do the right thing if you make the right call but you don't over communicate what you're going to do I I it could offend a lot of people like oh absolutely I was blindsided by the fact that you cancelled the water subscription service that delivered the water to our building at at three times the cost of the current company that we'd switch to. I can't believe I was blindsided. You know why was it. I told that we moved the lunch meeting back from eleven in thirty to noon or that that kind of thing and so the importance of over communicating within corporate America. Oh my goodness I can't even tell you the number of times as a young leader there. I screwed this up basically costly because nobody trains. You had to do this right. They don't tell you. I think when I got promoted to manager the first time I may have had like a two hour course and like here. You go kid take away and there's so many times I said the wrong thing because words really really matter really matter how you say things support and actually do talk about that a little bit of my book on how to frame these things and so the way you talk inclusively about your team and talk about. Hey we're in this together and all these things that may sound a little wishy washy manatee what it matters a lot to a lot of people. And that's the biggest thing is you should be. You know I'm one of those guys that really do I- candid all the time. Maybe too much I mean. 'cause I think that's the right way. We treat people like adults. And so you should be over communicating the Heckuva stuff your team your boss. Whoever should never be surprised about anything? And that includes cancelling lunch meeting things like that. And so when you're intentional about communication and that's a big word intentional about how you communicate and actually providing that people may be sick of it but as you've pointed out the alternative alternative is so many people I'll get their feelings hurt and just this craziness because you thought it was no big deal. You know it might be a big deal to someone so you gotTa make sure you're very explicit in the actions is your taking why you're doing and it has to be done now. You come across as very Proactive guy a guy who was very intentional. About how you design an organize your your your day. How do you organize the first four hours of your day? And what time do you do. You typically wake up you know. I'm I'm very much in the Gary Keller model of you know the one thing right very much You know that book is pretty impactful on me to understand you know. What is the most important thing I need to do today? And so that's what I try to do the day before right so today. We're looking at One recording this. I'm gonNA write down what I need to do tomorrow. That I think is the most impactful thing. I'm GonNa have that written down so when I wake up at about six. Am I look at that. I and I understand okay. All else fails. This is what has to be done and then I usually have a couple sub task but I make sure I'm focused on that more than anything and I think it's so much of a progress aggress over perfection type of mindset. Is You're never going to complete your entire to do list ever. It's just not going to happen but if you make sure you have it prioritized correctly you make sure you have that one thing identified. You can go to sleep knowing you had a good day. Also I find when you have your one thing written down your list and then you have kind of like the second thing you want to get done. The one thing is done it allows you really. If if somebody misses a meeting or can't be there you know what I mean. There's this weird moments where you're playing gets delayed or you have a thirty minute window of time. You could go look at your list. Oh yeah that's the one thing I need to knock out and it allows waste those little pockets times gaps in your schedule which I believe is is a leader of something you usually find yourself with an hour or two a day where some of the cancels something weird happens. Something moves around and all of a sudden. You've got that little thirty minute bursts of downtime and and if you don't know your one thing and you don't have it with you then you can't work on it absolutely and I also think and I I take time for this every day to also realize probably the stuff I'm working in on in the grand scheme of things isn't really that important. If I'm being honest you know a lot of the stuff. We're so stressed about so worried about in five years time. It's not gonNA matter better and I've seen this in the corporate world. You know you think about what you're working on this project. It's so important A- I've got to get these tasks done and you're so stressed out and you're pulling your hair out and the truth is in five years. No one is going to even remember what you were working on that day. The tasks you completed what they will remember however is if they liked working with you if they want to work with you again today enjoy you being around. Did you do a good job. Those those are what people remember not the actual. ABC tasks that you're doing now. I want to go back to lean six lean six sigma real quick. Because I don't have a lot of guests that are willing to talk with me about this kind of nursery which I love by the way I love. I love this I have found that people a lot of times. Hey checklists you know what I mean I hate. I hate scripts and I hate recipes and blueprints. I want to build a building and see what happens. I WanNa make a recipe and see what happens. I WANNA follow a script sometimes Talk to me about why the people hate proven processes absolutely and I'll admit even though I'm a process guy there's plenty of times in my life that I hate eight processes and I wanna do things my way and it goes back to the whole economy thing A lot of US think we're smarter than everybody else I think is a big part of it. They don't don't like being told what to do. I don't know a single person that likes being told what to do. Nobody and I think that's the biggest challenge when you look for these optimizations you you come in and when I was doing this this work today I would come into an organization. Nobody would even know me they. I'm just some outsider. Who shows up and starts telling these guys how to do either job better and they may have done it for twenty years? That's pretty annoying right. So this annoying person coming in giving them a checklist on how to do their job better and so. That's what really bothers people. Is I think that not only. There's the resistance to change. But you know what. I don't need someone telling me to do my job. I know what I'm doing. I'm confident I feel feel good about it so what you have to do. This goes back to the communication angle is you have to speak to them. In the visually. The number one emotion motion people have the most important thing they have. In the world self-preservation that's it period. All comes down to it. That's what they care about more than anything in the world and so you have to speak to that on an individual level you have to tie that process improvement to say. Hey this is why we're doing this and this is how it helps you personally personally. That's what we have to focus on. I know when I was coming in automating. A lot of the engineers work. There was a lot of pushback. These are smart guys. They don't want people to automate it but when you put it in a frame of hey. The reason I'm doing this is I want to take these easy task off your plate so you can focus on the really hard stuff the stuff that you're going to be great at and that's what's so important is to really focusing on the individual level. Say this is why this will make you personally better. You know a AH A tool Gwanda. WHO's a professor at Harvard? University wrote a book called Checklist Manifesto and in that book. He says good checklists on the other hand are precise 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. Checklist cannot fly a plane instead. They provide Reminders of only the most critical and important steps the ones that even the most highly skilled professionals using them could miss good. checklists are above all practical. Talk about making a checklist or a process leaving the listeners. With you know send they want to make the process for how to make part or for for how to make a wedding photography if he workflow Do you recommend getting Outta whiteboard in kind of sketching out the process from left to right recommend what what what would you recommend absolutely you know so. That's how I do it but the most important thing lean six sigma teaches. You is to talk with the people that actually do the work and that is missed so often especially in in large corporations where a VP. He or somebody else thinks they know what needs to happen. They think this is how you get the process when actually have meetings with those folks. They're not even the room. I tried to get anyone. That's not an actual sure frontline employees. Not even the rim. I don't managers in there. I don't want any leader whatsoever. Because they tend to over talk. You actually want the people that do the work that no the work. Every reese single day. That's who sketches out the process. Not You it's going to be the person that's actually already doing it. Then you look at the. Because they're the real experts you look at that in the room and okay okay. How can we guide this? I don't know if you've been bowling recently right. I know I go with my kids. But when you're bowling right you can actually have them put bumpers up right on the side. So you can't can't get a gutter ball no matter what you do. They put those bumpers up on the side. Right just to help guide the ball. That's what a good process is. That's it so they're still autonomy there right you can still bounce bounce around you can put it on the left side and the rice doesn't matter your goal is to make sure they hit the pins every single time. And that's what a process is is still have a little bit of flexibility in atonomy in there the make sure your guide and everyone to the right principle and you do that by talking to the people actually do the work in listening to them and taking their input and get that white board and do the process. One two to the three now I I. I'm not sure Andrew. I'm not sure Andrew if you could clarify here. Is this sound clip right here. This is this audio of our of of our guest here. Bowling of our guest here other than Master Blackville does this audio Donald Bullying or is this movie kingpin can. Yeah I think this is this audio of Donald. I'm sorry Don I'm sorry. I should've asked before Mike this is Donald Metro allegedly allegedly. This is Donald Matter Bowling with as only a six sigma black belt. Do Lean six sigma black. Let me cue it up there and just say we'll play about thirty seconds and we can see if it if it is donald better or if it is from the movie king penalty here three consecutive strikes to win three consecutive strikes to win. It all sounds better. You're here we go back brace. Good form looks good. Oh you do. Yeah it's definitely me because I mean that's how I roll I'll tell you this The process of the lean six sigma is where you remove errors in waste while reducing variation AKA gutter balls so it has to be Donald Donald. Congratulations on your great bowling performance. And I have a final question here for you for listeners. Out there's one take some action working to get a hold of your new book or do you want me to go to your website. What's is the best way for our listeners to devour more than just this half hour of content? Yeah absolutely so you can't find my book on Amazon is called surrounded by Ryan Sanity how to execute bad decisions and you can find out more information about me and do some of the things. I'm doing at the corporate middle dot com the corporate middle dot com. Ladies and gentlemen. He is a bullying expert. He knows the lean six Sigma Black Belt Game. That's Donald Matter. Thank you Sir for being on the show absolutely a lot of fun you take care and now without further ado three fool.

Donald Donald Jack Welsh America CEO spotify bowling Adam Sandler Mugabe California Tulsa Mister Kanye West Donald Matter Black Belt Co Oklahoma Lincoln Andrew America