welcome everybody Welcome to the exponential organizations 2.0 Mastermind uh we're going to be with you for the next three hours believe me we could be with you for the next three days and not cover this yeah there's so much to cover super excited about today if you would uh selem I'd love you to introduce yourself okay uh so folks I'm Sim isma I'm from India originally I'm Canadian 10 years in Europe 20 years in the US so I'm pretty confused I was the head of innovation at Yahoo where this journey release starts and then helped build out Singularity University as its founding executive director then I wrote this book exponential organizations which has kind of taken over Peter and I are now writing this and launching the second edition and I'm on Peter's board at the exerprise foundation uh Peter dandis here I have been a Serial entrepreneur all my life I love building companies uh built a number of universities International Space University and uh the founding executive chairman of Singularity University with Ray kwell uh run the xprize foundation as the executive chairman with an incredible CEO anusa Ansari uh my passion and my mission is helping entrepreneurs like you go big in the world at the end of the day we're living during the most extraordinary time ever in human history very proud to be partnering with Saleem on EXO 2.0 really with a mission to uplift human help you play the biggest game you can so let's talk about what we're going to be discussing here today um again uh we could be on stage covering this not for three hours but for three days or three weeks please the book is your guideline it's your how to it's your case studies it's everything you need so what we're going to be covering is uh what is the basis of all of this what do we mean by an exponential organizations then we're going to cover the characteristics of one most importantly how do you build one and that's where we'll get into really the steps on how you take yourself with an MTP into a global Challenge and transform the world that's our mission today um yeah let's see how you get involved so the book has launched uh for this week and this week alone we're making it available for 9 so if you want to buy books for your team members your colleagues friends Etc this is the time to do it it's already hit number one on a couple of categor on Amazon so we're super thrilled uh and Peter talk about Ray K yeah so um let's keep that QR code up there if we could uh one of the things that we did that's different than ever before is we built this into a living book uh you can imagine how rapidly this is changing it's so difficult to write a book and say we've got to include this we've got to include that so the team built an AI that allows you to query the book Ray kwell has been an extraordinary friend the chancellor of Singularity University a mentor for book both of us and we've named the AI Ray K in his honor it's free uh you can use this AI to help you actually create an exponential organization you want to talk about uh uh where it's going well I think we're going to uh create a global ecosystem around this right and so as we get into this first of all I just want to thank uh the entire EXO Community uh Peter your abundance 360 Community we've had unbelievable support from NBO Partners Casper the global entrepreneurship Network The Genius group and now there is singularity University where this kind of all started uh special thanks to all the contributors and writers from my community that have worked tirelessly for several years and mostly to Lisa Pereira who's been cat hurting us for the last uh three four years now um and big shout out to the Silicon Valley Press team and also Carrie and his team at igniting Souls so let's get into it and hello to the watch part parties out there around the world throughout Africa Europe Asia and especially there's apparently a huge watch party at uh NSU the leevon center for innovation of Fort Lauderdale welcome to all of you you know Sim let's kick it off with what is an exponential Organization no one better than yourself to to share that so this all started at Singularity University when we were running these onewe executive programs and people would go and actually those are the highest rated educational programs in the world okay so people come to the end of the week and go okay I got the disruption what the hell do I do on Monday and the book was basically a response to that and what we did was we scanned 150 to 200 of the biggest unicorns in the world to say how are they doing this how are they scaling so fast because starting from about 2008 we saw a breed of organizations scaling at their Pace that we never seen before and that's what we mean by an exponential organization now we have now the book came out in 2014 the first version and we now have almost 10 years of data and statistics so for example we had an original list of the top 100 exos how do they do over this last 7 8 n years the about half of them have gone IPO being acquired which is an unbelievable uh success rate for organizations but most importantly when we first launched the book we actually ranked The Fortune 100 the biggest 100 companies in the US ranked them against this model okay and we did a segment on CNBC squawkbox presenting this index basically saying uh here is a ranking of the most purpose-driven flexible agile scalable org structures to what extent is IBM using Lean Startup thinking to what extent is GE purpose-- driven or not and we came up with this index over the last seven years we've been tracking which of the top 10 organizations that use these characteristics and attributes the most and which use them the least uh Chandra npal one of our community members worked a lot with UBS Etc R did this analysis look looking right into the stock market engines to get real data and then over the 7-year period we compared the results how did the top 10 most flexible and agile versus the least flexible and least agile due over a seven-year period remember this is the for just in the Fortune 100 so in this over seven years the top 10 outperformed the bottom 10 by like almost three times on Revenue growth right six times on higher on profitability 11 times higher on return on Equity but the killer number was shareholder Returns what they call kager compound annual growth rate the top 10 in the Fortune 100 most EXO friendly outperform the bottom 10 least ex EXO friendly over 7 years by 40 times right we had to like triple check the data because it sounds so ridiculous so that's the difference between a why and why because as the external World becomes more volatile which we can see your ability to adapt is going to drive market value right and now we can prove prove that six ways to Sunday so that's the basis and thesis and the data we've been Gathering we now have thousands of stories like genius group with Roger Hamilton which went from zero followed the book um one of your a360 members uh and now has gone public right so there's thousands of stories like that we're pretty clear that over this next decade every company every nonprofit every impact project every government department will be structured this way just because it's just that much better yeah when people talk about a why why should you be thinking about becoming an exponential organization I mean the numbers are the ones that the numbers are crazy and it's really important to frame what what's happening in the world that makes these new organizations go and what's the shift that's happened so Peter why don't you take us through the fundamental sea change and what's happened in the world sure I the reality is there is a new kind of organization in town right this is not the kind of company that your father or grandfather started and it's the fact that we're going from a linear to an exponential World The Challenge is that our brains the 100 billion neurons the 100 trillion synaptic connections they evolved in a very different world they evolved in a savannas of Africa hundreds of thousands of years ago where everything that affected you was within a day's walk and nothing changed generation to generation you know literally Millennium to Millennium and our brains evolve to that world and our minds are low local and linear but we're living in a world that is global and exponential things are not changing dayto day they're changing hour to hour and the your reach to touch people is now the ability to impact A Billion Lives if you truly want to go that big and so when you think about it this is what it looks like this red line is all of us it's our investors it's our shareholders but this yellow line are the exponential technologies that were using we're building we're investing in and the disconnect between those two is either disruptive stress or disruptive opportunity my mission in this segment of our Mastermind is to give you a sense of an exponential mindset so I talk about exponentials what does that mean what does that feel like again we're all linear thinkers you know 1 2 3 4 5 and 30 linear steps you're 30 m away you've gone out your front door you've crossed the street but in 30 exponential steps we in EXP ential is a simple doubling 1 2 48 1632 in 30 doublings you're not across the street you've gone a billion meters away put differently you've gone 26 times around the planet and it's that disconnect between linear and exponential that's really extraordinary and it's what you as an exponential entrepreneur can take advantage of um you know exponentials are not intuitive I'll give you another example that I love you take a piece of pce of paper it's about. 135 uh millim thick how thick would that be if you folded it 50 times very simple question you might think it's well 50 time 0.135 but that's not it right we've got these doublings occurring if you were able to fold a piece of paper 13 times and you're not but if you could uh it's about a meter thick if you doubled it 20 times uh how far is it well it's about a football field wow us European doesn't matter roughly the same uh 38-fold and you have gone around the planet and 50-fold the original question it's from here to the Sun 93 million miles and that disconnect is really what we need to understand that our intuition is linear in the world around us is exponential so what we're seeing today uh IS F faster cheaper computers are the Bedrock they're the soil in which all these other Technologies are growing sensors networks AI robotics 3D printing synthetic biology AR VR blockchain even Quantum Technologies and it's the convergence of two three or four of these that we as exponential entrepreneurs and organizations are trying to do you could make a business before with just one but it's really bringing a number of these converging them together that are transforming Industries and creating disruption there's no better example of a disruption and I'll use this uh through our session here as an example uh Kodak in 1996 at the top of its game8 billion market cap 140,000 employees what most people don't know is that 20 years earlier a guy named Steven cesan in Kodak Labs had invented the digital camera and he takes it into the board of Kodak and goes here's the future of Kodak and they said it's a toy for kids it takes 01 megapixel images and besides it's in black and white and we're in the paper and chemicals business our profit Center and so they didn't take advantage of the digital camera and a few decades later they're bankrupt in the same year that Kodak goes bankrupt another company called Instagram gets acquired by Facebook for a billion dollars but they've got 13 employees and people laughed at that acquisition well they're not laughing now right where the valuation of Instagram has been an above hundred billion dollar and so the question is what business are you truly in if you're running a large-scale organization Kodak was not in the paper and chemicals business they were in the business their MTP we'll get to that of preserving people's memories when a better technology came along and they failed to jump on it that set them a drift you know all of this is being driven by what's called Moore's Law here's Gordon Moore the founder of Intel who you know creates the first integrated circuit in 1958 this is what that circuit looks like um and literally uh began to double year on year every 12 to 18 months it began to increase the number of transistors per piece of silicon and Gordon Moore predicted it would continue for some amount of time it was called Mo's law well it's continued for 50 years and today we're seeing literally integrated circuits that have a 28 billionfold increase over the last 47 years I don't know how to Fathom a number that big uh and here we see what Ray kwell calls the law of accelerating returns it's that last 50 years of integrated circuits but what we've seen is computation going from mechanical uh computers to relay to vacuum tubes to transistors to integrated circuits every time one of these Technologies runs out of steam the next technology takes over and it's continuing this way and it will we'll go to three-dimensional Computing photonics Quantum Computing so it's moving forward now one of the frames that I wrote about in bold and we'll talk about it and I want to explain it here is the 6ds of exponentials it's one of the fundamentals of building exponential organization your mission is to digitize any aspect of your business possible because when you begin digitizing something you're able to dematerialize it make it zeros and ones and if that's the case you can demonetize it because the cost of replicating those zeros and ones is effectively zero and democratize it because your ability to transmit it to the corners of the planet is effectively zero in the early days like in that first digital camera the growth is deceptive the first digital camera was 01 megapixels and next year was 02 and 04 very slow deceptive growth but remember this double something 20 times it's a millionfold bigger double it 30 times it's a billionfold and eventually it disrupts so you've seen these images before right on the far left is what it was like for Me growing Up Radio Shack and today all of these things are now available on your phone as an app completely dematerialized and we're able to demonetize entire products and services your mission again is to digitize to demone ize and ultimately to dematerialize and democratize your products and services now there's an analogy that I use about what's going on we talk about it in the book uh and it's an asteroid impact moment so let's go back 65 million years ago when a 10 km asteroid struck the Earth it changed the environment so rapidly that the large slow lumbering dinosaurs could not survive it was the furry little mammals that were agile that were able to survive and ultimately become us so for me the analogy of the asteroid impact are exponential Technologies they're changing the environment so rapidly that agility is your key to success buddy let's over to you for death of a linear organization yeah I just want to add a couple of things to that commentary one of the favorite ways I of framing it when you talk about 30 steps is if you go 30 steps linearly it's really easy easy to gauge where you might be a third or 2/3 of the way in that progression we're really good at that linear extrapolation but if I take 30 doubling steps and go to a billion and I'm 26 times around the world it's really hard to gauge where I am a third or 2third of the way and as Leaders we need to make these approximations right think about Peter's comment about the folding paper right it's inconceivable to us for many of us how that actually operates and so this is the unbelievable switch the one favorite use analogy I have is if the speed of a car had increased at the same Pace at more as moraw yes we'd have cars that went faster than the speed of light today right so like just get that into your head in terms of linear versus exponential but let's talk about uh so that's the fundamental world that we're living in let's talk about how our organizations have been evolving to not keep Pace with this in a sense okay so um if when you look at the uh classic organization we have a whole section in the book called death of the linear organization our organizations globally government departments corporations Etc are typically derived from a military context top- down hierarchical command and control uh really good for scarcity really good for uh short-term aggressive things finding a market that doesn't change very much and then doing uh uh products and services in that Marketplace Innovation almost always comes from inside and then you push it out these organizations tend to be risk intolerant and very slow and the whole orc structure kpis performance reviews are designed to mistrust the employees right so that's the context and framing for almost all of the organizational Design coming from the um uh Industrial Revolution down to today okay um and it actually resulted in a fellow called Ronald Coast positing an economic theory for this that's now called CO's law he wrote a nine-page paper in the 1930s for which he won the Nobel Prize basically saying that large organ ganizations exist because the transaction costs inside a big organization are cheaper than the transaction costs outside therefore it's more economically efficient to have big companies and that he that kind of laid the economic thesis for why we have big corporations that got bigger and bigger and bigger okay um however the challenge with big companies is you have what Jeff Kowalski first told me he was the CTO of audit Des he goes oh you were Yahoo you had a big immune system problem when you try anything disrup in a legacy organization the antibodies attack you and you get one of these rationals for why things cannot change Peter you I love these right you know 50 reasons some of my favorites know it just can't be done yeah or we don't have the money nobody else has ever done it before we we've tried this 60 times you know it's beyond my responsibility sorry not my job yeah it can't be done yeah and I don't like it it's not our problem to solve right it needs a community to study this and we'll get back to you yeah and and the competition's not going to enjoy this all of these kind of messages and there's 50 of these this was put together by RI uh shave ernston young um the the thesis and this is a big Challenge and you have big problems with immune systems in every big company in the world and then it gets worse in government right where the Regulatory and the policy is the immune system and then it gets worse in public sector where um taxis are fighting Uber Bankers are fighting Bitcoin and this problem is summarizing all of the resistance change that we have around the world um let's hear from Julie Hannah who summarized this problem very well the Insight that EXO had your thesis and insight about how companies try time and again to bring innovation in but there's a this immune system that attacks it I mean that was a revelation it was a revelation on the level of innovators Dilemma to me and because as soon as you identify it you say oh that that's that invisible hand that we just keep throwing good money after bad trying to address and we don't really know what's undermining it now not only have you identified this but you've developed this very systematic methodology that in in an incredibly accelerated amount of time starts to really transform the immune system problem and help an organization kind of unlock its superpowers if you will to go after the Innovation it seeks and so the the way that you've done that is so con prise and elegant and efficient that you know it's such an accelerator it's I think it's profound to me I think it's profoundly important there's not a system in the world an organization in the world that doesn't have this phenomenon and couldn't benefit from this methodology so that that's why I I draw a lot of inspiration uh from from your work and and your [Music] thesis so you know if so big organizations which are basically the main modality by which we do business and Commerce in the world today and that's not going to work very well how do we navigate this and really John Hegel and John C Brown summarized this they said big companies are organized for two things they're optimized for predictability and they're optimized for efficiency right if you're McDonald's you're trying to deliver the exact same Big Mac in a million locations around the world using standardized Supply chains and uh a product strategy that's very linear so all of our big organizations today are designed for linear in inal static environments that don't change very much and that is not the world we're living in and Peter just showed how radically the world is changing by the way you know this uh immune system isn't just for thousand person organizations I run into immune systems in 10 and 50 and 100 person organizations it's when you have been successful uh and you don't want to lose what has made you successful but that's not going to take you to the next level especially as things are changing so dramatically and rapidly I have a great example here uh Marriott Hotels today is worth about $50 billion okay turns out if Marriott had launched Airbnb Trip Advisor booking.com their market cap would be about $250 billion about five times what it is today the irony around that the reason we use that example is all of those ideas were sitting inside Marriott but the immune system would not let it out right so for fear of cannibalizing the existing 50 billion market cap they're leaving 200 billion on the table and this is true for almost every big company in the the world the inability to deal with this and maybe uh um uh David Rose who's the Godfather of Angel Investing uh kind of said this summarize this well he said any company designed for success in the 20th century is doomed to failure in the 21st okay let's note uh that as we look at these new breed of exponential organizations there's not a single MBA program in the world that can teach you how to build Uber every MBA program in the world would teach you how to build a 20th century organization right so there's a massive update that's needed across all of our education systems and teaching systems for how this works going forward um so let's talk about what exactly is an exponential organization right um and when we were building Singularity University we actually had the uh dean of one of the top Business Schools come through and after trying to explain what we were doing after a few minutes he asked how big is your team and we looked around the table and there's like five of us and you could see his mind break like literally he kind of left the building uh and 5 minutes later he goes can we go outside and play Frisbee and he was like gone um and we realized that something fundamental has changed since about 2008 of how do you build organizations starting from probably when Amazon web services launched because now you could take Computing off the balance sheet and make it a truly variable cost okay yeah I was going to say and it's challenge is if you're starting aesh as an entrepreneur with an idea looking to build an EXO there's a playbo the challenge is what do you do if you're running a multi- thousand person organization right and you've got uh biases uh you've got the experts who are ingrained in running it the way it's being run because otherwise they're no longer the expert anymore I love what you say the expert is the guy who can tell you how not to do something exactly how it can't be done and it's it's true and you know the day before something is truly a breakthrough it's a crazy idea right so if it's a crazy idea when I'm speaking to large organizations of any size and I'm saying if you truly want breakthroughs where inside your organization is your crazy idea Department um and if you don't have one then you're stuck in incremental and linear growth and which means you're moving effectively backwards I mean this is what I do with my abundance 360 community of CEOs my job is to help them understand that crazy is in fact where you begin uh and we'll talk about this in the context of a massive transformative purpose and taking Moon shots so let's get into what do we mean by an exponential organization okay now when we scoured all of the uh unicorns to come up with this model it's important to understand we didn't invent anything we basically tagged uh what they were doing and basically harvested and canvased it all and elucidated this basic model so our definition of an exponential organization is a purpose-driven agile scalable organization that uses acceler Technologies in Peter 6ds to dematerialize democratize Etc resulting in a 10x better performance than it's non exop Piers okay uh and so this is basically the fundamental definition that you can deliver now in the Fortune 100 we saw 40x okay but we stick with 10x as a nice round number by the way in order for someone to actually switch from a brand they trust to something that is new and novel there has to be at least that 10x for people to let go yeah if if something's 10% better the market will ignore you yeah because they're going to go to the tried you true proven brand that they're used to 10 times better you can't ignore it you can't ignore it and the value of making the change is worth it a a combustion engine car has about 2,000 moving Parts in its drivetrain the Tesla has 17 right so in terms of Maintenance design cost reliability it's just street lights ahead and it's not going to go backwards street lights ahead I like that so it's an old analogy from from from my my old days Okay so we've talked about what you know we've defined the exponential organization and look at like figma right gone from zero to 20 billion market cap in seven years Marcado Libre out of Argentina is now the number one stock market performer in Argentina and of course we've seen Chachi PT explode out of the gate at light speed okay uh let me give a couple more examples Ted was just a nice conference a thousand people year are going to monay Chris Anderson takes it over he does three things establish a huge purpose ideas worth spreading then he allows uh puts all the TED Talks on YouTube leveraging rich media right then he allows anybody in the Ted Community to go create a Ted X event and in a few years he's created a global media brand at a cost of near near zero so think about this he took an established small environment blew it open to Global level at almost zero cost right that's unbelievable to be able to uh do today let's give you another example in a slightly older thing so take used cars right how would you radically transform the used car industry traditional very materialized very physical maybe you have an app maybe have a better warranty for the car Etc this is guazi a Chinese used car sales company what they do is when somebody wants to sell a car they show up they gather 250 data points audio video they take a an audio of the engine and they you use machine learning to sense the pation in the engine and they can tell if your engine is a high quality or not they come up with a real-time price in their engine of what that car is worth they show it to the seller okay they say that's the price of your car the real value of your car will give you 10% less than that price right now in cash seller goes here then when somebody wants to buy a car they go here's the price will charge you 10% more than that price so this transparent pricing model plus the thing cuts out all the middleman in 7even years they captured 80% of the used car market in China okay they sell 2 million car cars a month so think about that they went from zero and used cars is not like some gaming Silicon Valley digital environment this is physical traditional very fragmented and they captured 80% of the market that's what's possible today if you can have the mentality and the structure to build an exponential organization now when you look to web 3 most of the nft projects that we see are exos they have a they've built a community they use many of the attributes uh look at the board ape Yacht Club that's my uh board ape by the way looks like you a little bit it does kind of Dopey a little bit sleep deprived but trying to be of service there's a service costume there right this thing went from um zero to a billion doll market cap in less than a year and it continues on this pace so we're going to see an explosion of this and we'll talk more about that going forward um and so with the rise of what we call the exponential organization operating at this speed we declare kosta's law obsolete okay and this is a dangerous thing to say about about a Nobel Prize winner but basically the time when he formulated this law today transaction costs are lower outside than inside when you're trying to do something in a small environment you don't suffer from the immune system you don't have to answer to legal and branding and HR and privacy about why are you doing that thing I'll give you a really clear example of this that brought this home when I was at Yahoo I was the head of innovation running their incubator when we tried to launch a new feature on on say Yahoo personals it took about eight months to get the feature live you develop it systems testing integration testing brand testing security testing privacy testing Etc about 8 months my space was roughly similar Zuckerberg is building uh Facebook and he said to his developers if you think your code is ready take it live on the live site developers are like are you kidding you actually trust us and you give us autonomy but your code better be right otherwise you're fired if you take down the live side so that they were rolling out a feature a week at Facebook and so that's why they blew past Yahoo Myspace even Google uh in this model so there's some characteristics about exponential organizations and we summarize it overall in the diagram of a brain okay um my original co-authors Yuri van gist and mckel Sherman and Mike Malone we put this model together basically tagging what was going on there's the massive transformative purpose there's five externalities and the five internal mechanisms so let's now get into the model of the characteristics of an exponential organization the first and most important is the massive transformative purpose and Peter why don't you talk about that yeah fantastic I love this uh at the end of the day doing anything big and bold in the world is hard work right uh if you're trying to make a dent in the universe and you need to be driven with Clarity and emotion so I want to talk about the attributes of an MTP and we're going to hear over and over again this is the first step for you in building your exponential organization or retooling your your existing company you know an MTP it's massive uh it inspires you it inspires your team you're proud to be doing this you're you know it's about taking Humanity to Mars it's about Reinventing the ecosystem it's about doing whatever you want at the end of the day it really has to be driven by an emotional energy uh it could be a positive emotional energy like awe and like excitement so my early mtps were about space and and space was an awe inspiring it could be about you know pain something that's going on that should not be going on right so my current MTP and the work that I'm doing is really about Reinventing the healthcare industry because it's failing us over and over again other attributes you need to be willing to commit a decade to this so at end of the day you know uh you might think that some of these billion dollar startups are overnight successes but they're really overnight successes after 11 years of hard work so you got to commit to it it for the long run third uh it gives you focus a Target to shoot for right without a Target you'll miss it every time uh this is an organizing principle for you your organization your team really important this is not an MTP uh is not something you heard someone else say it's something that comes from your heart and soul as the founder or founders of the organization it has to feel true unauthentic be able to shout it from the mountain tops and feel it right wake you up in the morning so to speak and finally it needs to be relatively brief easy to remember and recite so that every member of your team knows it uh in fact ideally your community and crowd know this they know what you stand for what your company stands for so here's a few examples of some mtps you know organize the world's information and make it universally accessible and useful that one is Google Google yes uh to revolutionize space technology with the ultimate goal of enabling people to live on on other planets that's SpaceX to incentivize and accelerate radical breakthroughs towards an equitable and abundant future for Humanity that is the xprize uh to support entrepreneurs to positively impact the lives of 1 billion plus people that's our dear family at Singularity University and ideas worth spreading is Ted so these are mtps uh for me it's a bit of a formula of of the actions you want to take and the group if you want to serve uh let me share mine and it drives what I'm doing at abundance 360 in X prise to inspire and guide entrepreneurs to create a hopeful and abundant future for Humanity I say this every morning in the shower I say this through the day my team knows it everyone who works with me knows it it drives me it inspires me Saleem yours uh mine is the transformed civilization it's kind of a kind of a simple small it's a niche project um this actually came from from my my dad I did a tedx talk called fixing civilization basically talking about that immune system problem and my dad heard about this talk and he's 90 result and he goes totally disagree with your talk I'm like what do you mean he don't you think we need to fix civilization and he goes yeah of course we do but that's not the problem the problem is not the fixing part it's the civilization part and he said we've not civilized the world we've materialized the world now we have to do the work to civilize the world wisdom bomb from the elders right and so that's fundamentally the work that we have to do because if you think about how we operate globally geopolitics and and companies Etc we're basically scaling tribal thinking Facebook groups Etc now we have to figure out how to transcend past all of that if we're going to take our civilization to the next level so that's what I'm passionate about uh let me come back to why in MTP it might be obvious to you but it's important to hit these uh the first is a powerful enough MTP it's the power of pull it's so inspirational you form a community around you right it brings people to you who want say you know I want to be involved with that and now today in 2023 2024 more than ever people want significance in their life they want to know that the work they're doing amounts to something it's not just about the dollar uh second MTP helps you attract and retain that Talent uh they want to be there on that 10year mission with you three it changes the organizational Focus from internal politics to external impact like stop arguing about that we are going to go and transform the world in this fashion can I interject for a second course so if you think about any big company 99% of the conversation in the company is about what's happening inside the company almost zero is about what's happening out in the world and the MTP forces an organization to look outward and instead of focusing on internal politics and so that's one of the the kind of impedance mismatches between big companies and exos thank fantastic let me go to number four here um like listen we're living in a world of uh extraordinary opportunity I don't know how if you feel like I do I I call it you know drowning in abundance or death by abundance it's like there's more deals more opportunities more startups more Investments than ever before so how do you know what to focus on well having a clear MTP uh during this abundance of opportunity and periods of rapid growth allows you and your leadership team and your company to really focus on things that are important uh the fifth benefit of an MTP uh which I'm excited to share is that it sets you up for a moonshot and we'll talk a little bit about moonshots and context here but this is the graphic that I use uh an MTP is a canvas all right so my early MTP coming out of college when my first 20 years an entrepreneur in the space world was to irreversibly and privately open the space Frontier to make Humanity a multi-planet species and so that that's what I cared about that was the filter with which I saw the world and so my first moonshot um was to build a International Space University it took the better part of a decade with Todd Holly and Bob Richards but we built what is now the leading institution based in stosberg France and um that was very clearly we had a very clear move moonshot Target this is what we want to accomplish by this date this is what it looked like and then the second MTP I uh the second moonshot I took in this area was around opening up private human space flight and this was the first X prise you know create a $10 million uh space flight incentive prize to stimulate technology and Investments and that launched the private space flight Revolution but those were very specific projects with with targets and dates on the canvas of my MTP and hopefully that clears up the relationship between MTP and moonshots um let me mention that sometimes it's not the easiest thing uh to develop your MTP and your moonshot uh kudos to my chief AI Officer Steve Brown uh who built this free AI engine uh you can go to moonshot planner.com um and uh it will step you through developing your MTP work with you brainstorm with you it's a generative AI model and then ultimately taking it to Planning and Building out your moonshot awesome let's go to the framework well I want to mention a couple of things so you know when we looked at the the hundreds of unicorns to tease out the EXO model we found that every single one of them had an MTP so we considered that kind of like the spiritual what you know what fundamental problem are you trying to solve and I love Peter's framing around it it's something that you're willing to put a decade towards um I remember Dan Sullivan a strategic coach who's one of your dear friends um offered free coaching to certain entrepreneurs I'm like wow what is it take to be in your little program he goes you have to commit to that one uh Pro company or problem for 25 years then I know you're dedicated right so if you're willing to commit 25 years to one problem or 10 years to one problem that's an MTP that means you're willing to I want to cure cancer the founders of ways were like we're going to solve traffic because it's a nightmare around the world and it doesn't have to be this way and so whatever it is for you what do you wake up in the morning at 6:00 a.m. every morning going I would solve that if I could one more way to think about is if somebody gave you a billion dollars what problem would you solve with that billion dollars right so those the we'll talk about that and all that is you can find that in your in your moonshot planner like what you want to do when you were a kid before your parents or teachers told you that wasn't an a job to have and by the way they were probably maybe right back then but not now the we're getting a note that there's thousands of people online with the chat streams going nuts uh if you want to kind of participate constructively please go to slido and upload questions on there it'll be much easier to manage and organize the abundance of viewers uh that we have just talking about that for a second think about this idea for 10,000 years every business in the world was focused on scarcity right like if you didn't have scarcity you didn't have a business and today we have abundance of energy of Clean Water of healthc care of Education you the your seminal book abundance nailed all of this and some way one way we talk about exos is they found business models around abundance so Uber has found a way of tapping into an abundance of empty cars lying around Airbnb tapping into extra bedrooms lying empty and so where is their latent abundance that you can then with the fundamental passion that you have take it up and light it up using the 60s model yeah amazing let's jump into uh the EXO framework in particular the external attributes here sure so so you know you see the brain diagram and on the right you see five externalities that map to the acronym scale and leveraging one or more allows you to keep a very small resource footprint and scale very fast from there and so we're going to cover the characteristics of these attributes uh now and then we're going to go to a Q&A session so get your questions ready right the first of these is staff on demand the poster child of this is Uber right as much as possible don't hire your own employees you have to manage people etc etc hire independent contractors or there are platforms that allow you to do this and not to pick on marot again but when the pandemic hit Marriott has 45,000 people in thousands of properties around the world had to lay off 50% of their staff it was a nightmare all the lives and families that got disrupted with that uh Airbnb because they used the staff on demand model the hosts are independent basically laid off 2,000 people and kept right on trucking and moved ahead with very minimal disruption we found during the pandemic that in the top 10 versus bottom 10 of the Fortune 100 the top 10 did five times better than the bottom 10 because of the inherent flexibility built into that so staff on demand is the first of these there's a bunch of examples Amazon's Mechanical Turk allows you to take any task and farm it out to a large number of people you have platforms like task rabbit or Gigwalk or a Fiverr where you can hire people to get things done there's an amazing company called MB partners and what they do is if you have if you're a big company you have maybe 3 4% contractors independent contractors we think that rtio should be about 30% because you need that resilience flexibility and MBO helps you manage all those contractors onboarding offboarding training background checks etc etc so they can help you drop the cost radically so there's all these companies platforms or companies that can help you manage your staff on demand in the last from 2005 to 2015 94% of new jobs in the US were in the gig economy okay so the overall economy is Shifting to that uh Reed Hopman wrote this book called the startup of you basically saying everybody will end up managing themselves as an independent uh contractor so that's the staff on demand the first characteristic the next one is community and crowd and Peter why don't you talk about that sure so we're spelling out the acronym scale here here's your C uh in this world of 8 billion people uh we are connecting the entire planet at gigabit connection speeds from 5G networks to uh to starlink and your ability as an exponential entrepreneur to build a community around you that becomes your uh source of ideas your source of customers your source of quality checking is extraordinary more than ever before so at the core uh is your core team right the these will probably be your Founders your employees your personal Network around that core team is your customers and alumni you have a direct relationship right this is not the crowd this is part of your community you have a direct relationship with those individuals directly around the customers and alumni uh you've got your vendors your fans your partners One Step removed but still a direct relationship with those individuals around them is staff on demand these are individual as we just discussed that you can pull in to work for you for a period of time uh and support you in a multitude of different ways and then everybody else outside of that is the crowd uh and this model um one of the most powerful things you can do today is build a Vibrant Community I mean that's what we're doing right now uh with you uh pulling people into the uh EXO community and the abundance 360 Community The Singularity Community our mission is to build a relationship with you so we can go and do great things together now lots of different models out there of companies that do this of course Ted um anybody who's been on stage is part of that core but then anybody who is in the audience or anyone who is watching uh the videos and uploading the videos and sharing the videos is part of Ted's Community the x prise foundation very proud it's 29 years now uh since the come start W 29 years czy well you've Breeden Dan Sullivan 25 years so that's well hey well I have and will so uh the X prize goes out to the world and it says here is a Grand Challenge right we have this hundred million x prize out there uh funded by Elon Musk uh to do gigaton carbon removal we just launched an X prise asking teams around the world to detect and autonomously put out a wildfire within 10 minutes of its ignition right Palmer lucky the founder of oculus was the first person to register as a team so what we do is around that challenge around that call it the massive transformative purpose of that X prise concept we form community and those communities are teams competing for it it's fans supporting it it's funders supporting it all of that is built around that core MTP uh of that xprize Wikipedia of course amazing what Wikipedia has been able to pull off I mean think about Wikipedia the world's information right now sits inside this basic website one of my favorite examples of community is the Chinese company xiaomi which is the second largest phone company in China out of no place I went and and met with the leadership team they're extraordinary what they built it's amazing and how have they done it they're they the second largest they do no PR no product development no marketing costs at all they have a community of a thousand super users and what they do is they say to those super users you guys vote on what features you want to see in the new phone and then those super users users get to get the phone a few months early and can boast to their friends here's the new phone and look I voted for this feature and the word of mouth of that is so powerful and the community of super users is so powerful that they can completely run their entire company with no PR marketing or product used to pay millions for all the experts and all of the you know that support now you get it for free from an authentic level of energy if you can properly use Community then you can use it for marketing product development uh um uh training Q also hiring right because if they're passionate about you that's the best place to F find new team members Etc so it's incredibly powerful most exos going forward are are operating with building Community First note that most of the biggest companies in the world are terrible at Community right and so this is a huge Arbitrage opportunity there by the way we see your questions coming in please up vote them as well we'll be going to questions very shortly so the next uh section after community and craft to kind of navigate and harness all of that is algorithms Ai and algorithms and Peter take us through Ai and algorithms the most dominant thing happening in the world today it it is it's the most exciting and hopefully you're playing with it the most important thing I can say is go and play this is a great quote from Kevin Kelly founding editor of wired you said the next 10,000 business plans will be for an entrepreneur to take a domain and add AI to it this happened by the way a 100 years ago when the dominant new breakthrough was electricity and electricity was being you know added to the drill the mechanical drill or the mechanical washer or dishwasher it's happening once again so I want to share a few Basics here which is why is AI exploding now the idea of AI began at a conference in 1956 at at Dartmouth 67 years ago so why now well there are four reasons it's important for you to to know them because they're going to give you a path of where things are going the first reason is computation power here we see 50 plus years of Mo's law uh not slowing down the death of Mo's law has been predicted so many times but in the last 5 years we've had a Tipping Point in enough computational power to run these neural networks these deep learning networks the second reason is the amount of structured data out there um these large language models are being trained on all the data that we produced and we're doubling the amount of data year on year it's every tweet every Facebook post everything online and that data is allowing these large language models to learn and anticipate what is next right they're learning from us third really important is that the algorithms are becoming much more much more efficient over the last five years the price of training an AI algorithm has gone down 99.5% and the fourth reason no surprise is the massive amount of capital going in this invest ments are not slowing down they're accelerating and so with those four attributes we're just driving better and better more and more AI couple of quotes here Sundar Pai uh said it best he said AI could have more profound implications for Humanity than electricity or fire I believe that uh Elon made it a little bit punchier he said companies are going to race to build AI um uh or you'll be made uncompetitive essentially if your competitor is racing to build AI they will crush you this is the way I phrase it and I truly believe it they going to be two kinds of De two kinds of companies at the end of this decade those that are fully utilizing Ai and those that are out of business so why why is this so important well we're living in this tsunami of data uh right autonomous cars with Lars and imaging we're in a trillion sensor economy where you can know anything you want any time you want and a competitor who's able to harness that data uh create algorithms and get insights is way ahead of you so how do you keep track of all of this well one of the things I talked about at abundance 360 this year and all of the companies that I'm chairman Vice chairman or an investor and I'm saying listen you need a chief AI officer you see that guy down at the bottom at the tsunami coming your way it's not someone who's coding large language models for you but it's an individual a strategic advisor to the CEO who understands the field sees what's going on where the directions are is able to advise you in that regard let me go to a video from a dear friend of both of ours imod mustak imod is the CEO of stability AI I just had him recently on my podcast moonshots and mindsets let's take a listen to emod look at creative industry video games $180 billion a year Disney spends 10 billion a year Amazon 16 billion year on content all of that's going to change in the next couple of years alone just from one tiny little 2 GB file industry is about again information Theory yeah and so once you can basically take a system you can have human input in the loop to train a system that's a generalist to understand principles you just drop just about everything what's your advice to that 20-year-old listening right now drop everything they should focus entirely on this 100 billion a trillion dollars going to go into this sector say that again how much 100 billion in the next few years and then a trillion dollars will go into sector CU it's so transformative and so few people understand it there's never been something a technological advance that will diffuse as fast as this but what does it look like to focus what would a person do like if you're entrepreneur You' be an entrepreneur in this if you are someone who can communicate you communicate this to other people and you get paid a million bucks a year as a consultant right if you're an artist if you're a creative if you become the most efficient artist in the world corporations the big programs the big things will be out competed by just individuals and small groups building on top of this techn can do anything all right let's go next to uh leverage and shared assets over to you selim yeah so um the the starting point of exos was really as I mentioned when Amazon web services on because then you could Leverage The computing power that am Amazon offered and go to that model and there's hundreds of types of this the sharing economy sits inside this category right um Outsourcing uh leveraging cars like getar around or turo does or Rent the Runway uh opening up data sets making those available fractional ownership of both IP and real estate or both aspects of leveraging other people's assets so either you should be leveraging another asset or if you have one make it available for others to leverage makes you a platform which then makes you a platform and we'll talk about how do you build a platform in a bit um but this is a a a huge environment think about ways how explosive that was why because they leveraged the GPS on your phone to gather the location data as opposed to Nokia buying navtec which owned the traffic circle sensors in all the roadways that doesn't scale right and so this incredible talk about Lab Central the the biotech lab yeah so if you're a biotech startup uh you have so many requirements and it's so difficult to get all the approvals so what uh a very enterprising entrepreneur did is he bought large lab uh facilities and he rented it out by the lab bench so you could be an entrepreneur of one and have access to all of the equipment you possibly could want and get going uh we can see that in other Industries as well yeah people like March Mark hatch uh created U uh lab spaces and Fab labs around the world where people can share that right the the little Gadget Square which is now multi-billion dollar company was built at a Fab Lab so you don't have to make the investment and all that equipment Etc up front so incredible capability to leverage other people's assets to then build your Exo okay um the next piece the final e in scale is engagement and Peter talk us through that sure uh so engagement is about how do you engage the crowd to make a community and how do you engage your community to keep it sticky and together so incentive prizes is a great way to turn crowd into Community we do this xprize all the time we put out this Challenge and those who who connect with that challenge with the MTP of that challenge join in for a team support a team and they go from the crowd to community gamification uh is how you make it sticky right U token economics is blowing this all up one of my fraternity Brothers um uh Michael sailor who runs micro strategies just announced something called micro strategies lightning rewards and what are they doing uh everybody inside your company gets a wallet and they when your employee behaves well meaning they show up on time to the meeting or they watched that particular training video or they went and did whatever they get Satoshi in their wallet so you're literally correct connecting a direct connection of monetizing the behavior that you want they call it micr strategy lightning rewards uh I want to go to a dear friend of both of ours Eric poer who is the CEO of vatom and uh one of the most extraordinary companies on engagement let's take it away Eric thanks Peter I think a good way to think about engagement right now is this Confluence of exponential technologies that have come together to transform the very nature of how we think about engaging our internal constituents and our external customers take a look at Pepsi for instance for the World Cup this year in uh Qatar they actually printed 200 million QR codes on bags of potato chips other snacks when people scan those potato ships they didn't go to an App instead they went to a web three wallet and in dropped a smart nft not for speculation but for engagement it said share take a selfie and share and then your face became part of this massive soccer ball the end result was an ongoing direct conduit of communication between the brand and the consumer they had hundreds of thousands of people that willingly happily gave first-party data that's the Holy Grail of Next Generation engagement gave that first party data and said okay what else do you have for me Pepsi then ended up with hundreds of thousands of people they can then talk to on an ongoing basis another good example State Farm State Farm put out over a million digital footballs into augmented reality people went around chasing them all over the United States and when they got them they got all sorts of prizes these things were redeemables and collectibles they they turned into nfts but they also turned into again first-party data legally and ethically collected that they could then then turn into ongoing long-term relationships amazing examples for the next generation of Engagement thanks Peter thank you Eric uh you know one of the most extraordinary platforms of Engagement uh that you wrote about and uh Eric also loves is the octalysis platform yeah let me let me mention this for a second so um yukai Chow who's a PhD in Burke out of um Berkeley in gamification put this framework together and if you see the slides um what he did was he identified eight major Mo human motivations like um empowerment and epic meaning and ownership and then four four white hat positive ones and four negative ones fear of missing out unpredictability avoidance Etc and these are like a maso hierachy almost of of major human motivations then he identified 150 Plus game Dynamics like leaderboards progress bars Easter eggs and map them to these motivations so if you have a community and you want to inspire more social influence you you do one of those things if you want to do more scarcity then you implement one of those things if you want to do social inclusion then you put in leaderboards and progress bars and so he's mapped all of these so now we have a for the first time ever a completely prescriptive model for human engagement that should be embedded into any product or service going forward and what we predict is EXO now will be building out using this model so for example take most of the blockchains they've exploded out of the gate by taking Community adding cryptoeconomics and this engagement model and totally um getting 102 billion doll market cap out of nothing and half the world most of the world has never even heard of them the most famous example of octalus is being embedded into a product is dualingo where they've embedded all of the capabilities around it and Peter you talk about some of this uh these engagement models also right um but all of these are operating this Gary vaynerchuk with vriends has created a whole Community around these and the people are trading these nfts so the web 3 world is connecting into this and naturally using all of these pretty aggressively so that was the five attributes of this and I want to touch on one last piece of Engagement sorry I forgot one thing um if we can go back to the slides for a second are I've been talking to the SE Suite of a bunch of cpg companies and what we've been saying to them is the future of Brands is going to be an MTP to give you purpose to that brand brand octalus as type engagement models to give you a prescriptive way of engaging with the customers and an nft architecture at the back end why because that gives you a permanent cookie that's programmable and you can ride around all the web two um LinkedIn Facebook Instagram uh Gatekeepers and have direct relationship with your customers so this is our view of the future of All Brands going forward uh and we think this will become incredibly profound over time in fact to go back a bit in 2015 Paul Pullman who is the CEO of unver had me come into his top 200 Executives he then ordered every brand in unver to take on an MTP okay four and a half years later the five most profitable brands in Mt in unil are the ones that had adopted the model the most so we can start to see the model bite but now we're going to see all brands go down this path with this nft endpoint in different ways so G gave you a summary overall of the um five scale attributes uh let's go to Q&A remember please uh there's a QR code for you to get access to slido let's put that code up one more time may want to scan it we're going to be using this over the next couple of Q&A sessions uh but we have your questions uh teed up the ones that are most upvoted um let's begin okay so Peter Bailey is asking where and how do micro small and medium siiz businesses find their space in the EXO Paradigm so the smaller the better in a sense and they actually more naturally think about the biggest companies in the world today Apple Facebook Microsoft Google all started out of small startups adopt these characteristics over time and boom they're the biggest companies in the world I mentioned already Marcado Libra out of Argentina the biggest companies in the world in the next decade are going to be exos they already are for the most part so but small companies can adopt this model much more effectively than bigger companies because there's no immune system you can jump to these new models if you think about most business school thinking right in in the US or Europe or Japan uh we've learned 50 years of Harvard MBA thinking we have to unlearn all of that and and then relearn these new models whereas Emerging Markets small companies are much more flexible and risk um um accommodating they can take small teams can take on more risk you talk about all that time um and therefore small teams are much more adaptable to exos than large companies all right let's go to the next question here um uh Arvin says how does one protect downside while building exos so here if you're building an EXO notice we said that you you can have a very small resource footprint and then use staff on demand or leveraging other people's assets so that your risk profile is very very low you can put much less Capital At Risk right talk about the cost of running a company or building a company because you've been tracking some of that if you go back 20 years uh if you were starting a tech company it was on the order of $5 million for the servers for the software for the landlines for the access to to bandwidth for the for all of that that has dropped down uh orders of magnitude to the point where you can start the equivalent company today uh for 500 bucks and what we're seeing in particular is with the generative AI world is that entrepreneurs are starting new generative AI based uh exos with 0 it's based on evening and weekend time because you have access to everything you need effectively for free so it's an extraordinary time all right let's go to the next question here well actually you have one of your interns is building like oh my God yeah one of my uh Andre when he joined as one of my junior Strike Force members I said so are you playing with generative AI he saids yeah I've got three startups I was like it blew me away all right next question uh Lucas is asking when when you have less Financial capability is it better to team up with investors to grow an idea or better to test while small and bootstrap uh 100% our bias is to test while small in bootstrap the more you can drisk it the more value you create and the less dilution you take when you bring investors on board also as soon as you bring investors on board you become risk averse because you've made promises your ability to be agile and to switch to a new idea remember it's not what you think is right it's what the data is showing you and how many companies out there started in one area had an amazing team passionate had a vision in MTP but what they exactly did shifted as they learn more and more and sometimes your investors will be sort of a lead Keel and an anchor if you're bringing investors make sure that they're backing you in particular not your idea there's there's three kind of Market uh things one is the technology risk the market risk and the execution risk so investors look at those three okay today almost everything comes down to team risk uh how cohesive is the team when you inevitably go through the pivots and right turns to kind of navigate success and investors are typically betting on that the more you can make those right-and turns and find your sweet spot the ideally you get to product Market fit before doing that we'll talk more about this when we talk about building an EXO so let's let's go to the mick Lee thank you for your question do you see a need for a change of the social cont contract between workers and organizations yeah 100% I mean I mentioned that statistic right I'll repeat this 2005 to 2015 94% of new jobs in the US were in the gig economy so this totally breaks pension planning unemployment benefits retirement plans all of that uh health care benefits Etc so you need platforms like say MBO partners that will handle some of that for you and handle that social contract so you can focus on just the gig economy Etc when you have a a platform like that or Fiverr or upwork Etc it allows you to focus on the work that you love doing the most right so most people in the gig economy are doing that work because they really want to rather than not um can I tell a funny story about Uber okay so a few years ago one of our alumni in France said hey can I talk to you I've got a meeting with the Finance Minister in France I'd love to your help I said okay what's the meeting about he was like well he wants to know how to shut down Uber I'm like what he goes they can't stand these independent contractors doing their thing Etc and he wants to shut it down because the taxis go on strike the airport goes on strike and then the president yells at the finance minister so we did like 10 minutes of research and we found the most amazing anecdote outside Paris you have the suburbs called the Balu which is full of North African immigrants uh it's like South Central LA in the 80s if you go in you may not come back out drugs gangs the whole lot um the French government has spent $40 billion trying to solve that problem okay over the decades Uber comes in uh in 18 months the crime rate drops by 10 times why because they're all out driving okay because the labor liquidity offered by a gig economy like Uber or any of these others makes it a so that anybody can go work when they have the time a single mother can drop their child off at school drive for a few hours come back and make a viable living that is the future that we're going to be living into and the platforms that support that and mo note that most big companies don't still that's where we're going to go today most big companies have about 3 to 4% independent contractors we think that's going to go to about 30% all right let's go to some more squeeze a few more questions here Max says is it a good idea to start an EXO that uses large language models to ask what a user wants to do in life then Maps a career path daily tasks toward goal uh comp uh completion so max we're going to be talking about the steps for creating an EXO it begins with having a massive transformative purpose Pur an MTP and then you're going to pull in the tools that you need to use to achieve that MTP uh listen large language models are a tool usable across the board um but I wouldn't start with a shiny widget and build a company around that I really what is the problem you want to solve yeah it's you should focus on your MTP and then figure this out let me just touch on this this is really really important we'll touch on this more in the building an EXO segment but the traditional model was find a great idea and then try and push it into the marketplace right and we recommend strongly you start with an MTP and then find the technology skills capabilities that will satisfy that because the Technologies are changing all the time but your MTP the problem you want to solve until you solve it is going to be there for a while right let's go to the next question here uh Adam asks clean energy solar panels batteries is showing exponential growth over long term how does this fit within the EXO construct and approaches so um listen uh solar uh and fusion and wind are Technologies um the EXO construct here is is really about uh what kind of a company you're going to build and who you're going to serve around that but note that you are correct Adam there's unbelievable potential happening why because solar energy is on a doubling pattern it's doubling every 22 months okay and by the way it's been doing this for 40 years so at this pace we will be able to deliver the entire world's energy needs in four doublings we're like eight years away 50% of the US solar new energy is uh I'm sorry 50% of all electric new energy on the grid this year in 2023 is from solar um lithium iron batteries have dropped 90% in cost over the last 10 years and what Elon Musk I'm going to just touch on this this is the the fundamental trends that are exponential when you build a company on an exponential trend say drones that are doubling every 9 months that your company will grow along with the underlying technology right um when uh Jeff Bezos was scanning around to start a company he noticed the internet was going 2,300 per a year so he said all right I'm just going to sell books over the internet and the bookstore grew 23 100% a year along with that so you really want to piggyback these exponential Trends and build a company but start with the MTP let's go to Paco here for one last question before we go to our next segment uh how to include 10x social and environmental exponential impact as well as 10x growth in the EXO model so this should be taken care of by the MTP if you have an MTP right of of solving Transportation like Elon or others basically the social and environmental aspects are built into that MTP okay by definition you're a very ethical company you're trying to do good in the world you're trying to solve a fundamental problem if you have a negative MTP or your MTP is not inspirational enough or contributory enough to solving some of the big problems you won't attract a community and if you don't attract Community then you can't scale very effectively so it all starts with the MTP all right we're going to go into our internal attributes we've got five internal attributes um so we yeah so the scale Elements which were the externalities allow you to keep a small feature for print and scale very quickly right these five internal mechanisms allow you to manage the control framework Drive culture in your exponential organization so let's cover these uh Peter why don't you start with uh interfaces sure um so interfaces you can think of them as apis as well if you're a rapidly growing organization and you're bringing on customers you're bringing on community there's no way that humans enable you to scale at the rate of thousands tens of thousands millions you need to automate that really and that is your interface those or your apis these allow you to scale uh your organization they also allow you to turn your organization into a platform right one of the platforms I loved was when Chad Hurley created Youtube and enabled you know at the intersection of all these exponentials you know cheap memory cheap smartphones uh high bandwidth internet and allowed anybody to upload and then to monetize that um you know Uber is the poster child once again again of of these interfaces it's interface with me as a customer when I'm calling up Uber Uber Eats whatever it might be and interfaces with the drivers it's that agility that enables that the you know App Store Steve Jobs created this app store on top of a smartphone making it accessible to anybody you know I've spoken about in the past something called a user interface moment a user interface moment I look for these moments they really important please pay attention here when you got a very complex infrastructure like the arpanet right the predecessor to the internet which very few people could use Here Comes Mark adri and he creates Mosaic and Mosaic is a user interface moment on top of arpanet allowing anybody to build websites and utilize this backbone of connectivity and then all of a sudden Boom the worldwide web explodes coinbase is a user interface moment allowing any of us to buy and transact very easily uh these cryptocurrencies and then the other best example right now we're living through it is chat GPT it is very much a user interface moment allowing us to utilize uh large language models extremely easily uh two things about this right uh note that all platform businesses use interfaces okay um and basically you want to automate the supply side and the demand side so think about Google ads they've automated the buying of ads and the selling of ads and therefore they can scale effortlessly same with Uber the the interface between Uber and its drivers is actually a form of intellectual property so we think this is the most under recognized element in business today or the interfaces between your company and the outside and how you automate those we think there's going to be books written about the future of interfaces the to manage and navigate if you can automate the interface which is automating one of the scale elements right so X prise when you guys run when we run uh teams Etc the more you can automate the interaction with the teams the entrepreneur right now I'd be looking to build a platform yeah so uh super critical interfaces uh to to deal with this all right next one is uh dashboards over to you okay uh so dashboards are critical because if you're building an EXO and things are going wrong or things are going right you want to know as fast as possible there are two pieces and two sides of dashboards one is the external dashboards which is the realtime engagement metrics that your organization is tracking and on the inside okrs what stands for objectives and key results okay so if I go uh up a level almost every Silicon Valley company uses okrs uh to manage the control framework performance management team and individual performance Google has taken it to an extra step by making their okr system completely transparent so if I'm an employee I can look up anybody else's past performance and what they're currently working on to see is it worth collaborating with them Etc on the external side uh companies are tracking for example focus at will which streams music to put your brain in an alpha State publishes to all the stakeholders the current number of free users paid users the churn the average uh Revenue rate the monthly Revenue rate and publishes like 30 statistics that operate in real time so these two components are absolutely critical they're the headlights that keep you seeing if you're on the road or not as you head towards your uh MTP um let's take a negative example of weor okay wework didn't have adequate dashboards and didn't realize they were losing money every time they opened an office and when what they did was they scaled the company before and lost money on every transaction so they scal their losses so you really want to get your unit metrics right before you scale which is also called Product Market fit Etc and dashboards are absolutely critical for all of that okay uh next one is is experimentation Peter talk us through through that one uh sure so there are two principal elements in experimentation and to a large lar degree this is a culture that you need to build into your company from the beginning uh the most successful companies are data driven founder Le experimental companies companies that it's their second nature to run experiments constantly um part of this is Lean Startup thinking and the other is creating a culture of risk and in a lot of Nations around the world failure is a death sentence and that's a problem um ultimately one of the benefits of the Silicon Valley mtal Silicon Valley mentality is if I failed that means I've learned and I'm likely not to make that mistake again you need to be building a learning organization a couple of fun quotes um this is your sim it says experimentation eats strategy for breakfast yeah we used to say culture eat strategy for breakfast but I rename it I go experimentation eats culture for breakfast and yours is yeah I overcoming the tyranny of confidence and and this is the old world right in the old world you had the expert the Great rer who said well this is the way we've done it and I'm super confident and that tyranny of confidence can destroy you right the day before something truly is a breakthrough it's a crazy idea and if you're confident in the old way of thinking or if you're an expert who can tell you exactly how it can't be done you're stuck that diagram you see on the right hand side there really is about a rapid experimentation cycle you know the king of experimentation has truly been Amazon I love a quote from Jeff Bezos who goes our success is a function of the number of experiments we run per day per week per year right and they built an entire organization around that so datadriven founder-led experimental organizations so hypercritical let me just show uh two quick things yeah sure one is because the world is changing all the time you have to be running non-stop experiments to be the sense making of this right so Str your strategy is done there's no way of formulating strategy in today's world because the world is changing so fast the best strategy in the world failed when the pandemic hit you could have the best strategy as a technology company until chat GPT launched so you have to be constantly running experiments of sense making uh let's take the example of Eric Yuan who was building WebEx for Cisco he wanted to try a bunch of things with WebEx and Cisco wouldn't let him so he went outside built zoom and boom we have the world's most popular uh video interface U why because he wanted to experiment the big company wouldn't let him in at the result as a response an amazing individual uh friend uh Astro Teller he is the captain of moonshots at alphabet ATX uh let me share a a short video here and the important thing that's important to note is if you're going to experiment a lot you're going to fail a lot and if you don't have a tolerance for failure in your organization you're going to fall apart all right let's listen to astr teller we need people to become lifelong Learners and the number one reason that we aren't lifelong Learners is because you don't learn from confirmation bias you learn when you're wrong failure is the only meaningful mechanism for improvement and yet it's the thing we avoid it's the ultimate no no so if you want your team to be obssessed with learning which I believe is the only way to be obsessed with winning then they need to find failure to be something they can say with active Pride so that's experimentation and you know it's really hard it's against human nature for us to be tolerant of failure um but if you're going to be experimenting you have to be holding out for that Pearl that is that aha moment and in the book and by the way there is so much we're throwing at you right now all of this is in the book yeah so remember the book we made it free for anybody that wants to go read the book uh in this webinar and then 99 Cents for this first week as we uh as we want maximum adoption and want you to get this out bued for your teams etc etc uh we now have such incredible proof that the model works so we're certainly totally and utterly thrilled about that most big companies around the world have a really tough time with experimentation right um one of the questions we ask in our survey of when we do a Quantified score of a company is to what extent do you tolerate risk-taking and failure inside your organization and level one is if you fail you're done and it's what we call a CLM a career limiting move level two is we say we tolerate risk but really we don't really you're to so but at least you say you do level three is you tolerate risk in Innovation areas or sandbox areas but not in the mission critical aspects of the company and level four is pervasive across the company and measured so for example Amazon for every team in in Amazon is asking how many experiments did you run this quarter how many succeeded how many failed if you don't run enough experiments to not enough for failing you're in trouble because they want to be constantly learning the future future of organizations is going to be a learning organization and that's what experimentation gives you the next one is autonomy okay and autonomy uh has a couple of pieces to it it's the a in ideas uh and it's about decentralizing decision-making and pushing it down to the edges of the company why because the people at the edge of your company have the closest contact with the End customer um valve is a great example of this valve software is about 400 people they have no CEO no repor Lines no job descriptions no management meeting no meetings of any kind they literally operate like a beehive so if there's a bug in the software platform I grab three people we go fix the bug and we disband every employee thinks self- selects as to what they want to do and it sounds kind of like a joke but they get more Revenue per employee than Microsoft for doing this so the more you can push decision- making out yeah the more flexibility and more resilience you build into your organization and as we think about Peter's linear exponential In This Very volatile world you want as much decentralization as possible the end point of autonomy is Dows decentralized autonomous organizations where smart contracts will be the interfaces between the organization and the outside world and the whole organization can run pretty much autonomously the poster child of this is Bitcoin which is just a protocol and anybody can self- select to run a Bitcoin node or not it's completely there's no Central organization this is incredibly difficult for a linear or traditional organization to get their head around very hard to implement into a legacy organization zaposlitev so when they do an online promotion everybody goes to the phone Banks when it's regulatory your reporting time the chief risk Officer says hey I need help and everybody goes to those systems so it makes everybody much more it's much more fun for everybody very difficult again to introduce into a legacy organization okay um the final attribute that we want to talk about is social Technologies and Peter do you want to take a crack at that or should I cover that one no what' you go ahead okay so social Technologies is the peer-to-peer collaborative technologies that allow you to communicate and collaborate peer-to-peer we have really good evidence today that peer-to-peer uh working is much more valuable traditional po- down command and control your manager tells you what to do Etc right think about if you have a traditional organization the SE Suite or Senior Management decides to do something it filters down through layers of middle management gets to the some something to do with the end point the people at the coace are probably doing the wrong thing because they've got the wrong messages they get reports in for what's happening which filter up through all those layers which takes unbelievable amount of time and inevitably they get the wrong information right I'll give you this great example as IBM in the 9s uh was trying to figure out how important was social was open source software so they went to all the cios of the Fortune 500 and said how many of you are using open source software in your technology stack and 95% of the CIO says no no no no we don't use open source we use Oracle we use Microsoft centralized we need control Etc so IBM was like huh so they went to the CIS admins that were running the technology back themselves said how many of you is open open source 94% said yes they are so IB went okay who's more in control the sisadmin who were doing the work so they made a massive bet on open source which worked right so enabling peer-to-peer uh Tech collaboration is incredibly powerful and we have a ton of tools Zoom Discord is the one that's used today by almost all of the web three World in terms of doing this but there's a bunch of others slack Asana WhatsApp has now have got Community features built in ETC because that's the C clear value when you can have social Technologies connecting not just your team members but your community right real Community happens when you have peer-to-peer value Creation in the community so incredibly important what happens when the CEO is not watching right and and you know literally co could not have come at a more opportune time to drive social Technologies and I don't think we've seen a fraction of the social technology IES that are being built right now uh that are going to emerge you know 3 to 5 years postco and this allows you to get access to incredible genius around the world it's Geographic Arbitrage right if you can't afford that AI scientist who's in downtown San Francisco uh maybe they're in uh Poland maybe they're in uh Brazil but end of the day these social Technologies enable you to bring them on staff on demand onto your team as if they were right there and there was an important announcement yesterday hopefully all of you have seen it uh a new social technology that is lighting up the internet uh that's going to make this that much easier why yeah go ahead and play the video from Apple and play introducing Apple Vision Pro Vision Pro is a new kind of computer that augments Reality by seamlessly blending the real world with the digital world it's the first Apple product you look through and not at and you control Vision Pro using the most natural and intuitive tools your eyes hands and voice Apple Vision Pro helps you stay connected to those around you when someone is nearby they will appear in your view hey and Vision Pro will simultaneously Reveal Your Eyes to them FaceTime now becomes spatial taking advantage of the room around you you can join a group call and see everyone lifesize as new people join FaceTime simply expands it delivers a natural representation which dynamically matches your facial and hand movement I'm doing with your persona you can communicate so what are we going to what are we going to see there we're going to see the ability for you to have interactions with your team members anywhere on the planet as if they're there uh and really get out of the tyranny of the small boxes on Zoom let's note that the uh Imaging in virtual reality Etc is getting to the point where pretty soon the resolution of a VR headset will be higher than the human eye okay so in the very short order next couple of years virtual reality will disrupt reality so that's like holy crap 4K per ey right now I think we're still a couple doublings away from that but at the end of the day this is about making it fun and easy and engaging I miss an office I miss the interactions you know Zoom doesn't do it for me fully I hope that this will all right it's now time for your questions I'm going to put the QR code up there so uh remember up for so now we finished all of the attributes MTP scale and ideas of an EXO let's take some more questions then we're going to take a short break and get to the best part which is how do you actually build an EXO so stick around for that but let's go to some questions on slido and we'll start off um go ahead Peter why don't you take yeah sure so the first is from John he says why has blockchain Enterprise adoption been so slow uh what's the Catalyst team uh to change this so um all of these new technologies right come with risk okay uh can I go back just a second the most insightful thing that you and and stepen put in abundance was the fact that we have an amydala yes okay and that amigdala is there for scanning for danger so when we were running around on the plains of Africa if you heard a noise in the bushes you ran why because bad news can kill you good news doesn't kill you so if I miss some good news I might miss some fruit that I could eat if I miss some bad news I died so we're 10 times more likely to pay attention to bad news than good news because of the danger Factor when we come across a new technology autonomous cars drones the first reaction is the amydala going oh my God that's dangerous autonomous cars might kill somebody let's ban the cars until we understand we saw Italy Banning you know CH GP right why why do you ban because you don't want a robot killing people we'd much rather have drunk people killing people than robots killing people so the DAT this is why you have to be very evidentially based around this the reason blockchain is tough in an Enterprise is it's new it's uncertain it entails risk and big companies are really really bad at risk the Catalyst that's going to solve it is EXO growing up and supplanting the big companies that's what's going to happen or it'll get to the point where the blockchain tools like Casper the the new blockchain is one of the most sophisticated Enterprise grade ones that we've seen um and that will allow Enterprise adoption with all the resilience and security that enterprises uh need and want so it's going to take some time for Enterprises to get in we're still in the crypto winter as far as Enterprise blockchain adoption is concerned let's go to the next question um uh zarne says 10x organ ganizations are focused on leveraging Technologies to create impacts but according to data most of the exponential impacts are felt uh in the global North yeah so this is true for now right so let's talk about exos the birthplace of these were probably Silicon Valley where as Peter mentioned we relate to risk as experience okay in most parts of the world if you take a risk and you fail you're a failure Etc and I'm going to tell another quick anecdote here because S I have a friend who's done eight startups seven Venture back startup the eighth one is a billion dollar company okay so when I was researching for the book we went and interviewed this VCS that inter that funded this guy I said this guy failed five times already and you funded him at number six he fails you you fund him on attempt number seven you fail and you finally got a jackpot what had you fund him through attempts let's note that this would not happen anywhere else in the world right in most of the world if you fail once or twice you're done you're never getting funding again Silicon Valley these guys funded him eight times before he finally succeeded and the answer was from the VCS was incredible they said that guy is so crazy the one thing we know is he's never going to stop he's going to keep plugging away until he gets there and at that point we want to be there when it's when he succeeds so that repetition and that resilience for keeping is what made Silicon Valley successful and essentially this these patterns are now going around the world I want to give you an example example of what's happening around the world in terms of democratization and dematerialization the F the third fastest electric car in the world I love this example is called the Vega okay it's 900 horsepower you can go look it up um in your separate browser window that you've been browsing while we've been watching this webinar and and go check out the Vega it's a car um 900 horsepower it's being designed engineered and built in s Lanka I've been to Sri Lanka twice that hot bed of Automotive Innovation okay if you can they have no ecosystem no expertise no experience no funding uh and they've never done this before I'm going to suggest to you that if you can build the third fastest electric car on an island to fishermen and Farmers you can do anything anywhere so right now all of the major breakthroughs that are going to happen in the next decade or two are going to come from Emerging Markets because of what I said earlier we you don't have to unlearn 50 years of industrialization you don't have a huge immune system there right you can be the leader we're seeing this in Africa right Nigeria in particular is a hot bed of entrepreneurialism um and it's just what we're see and I want to make two points this is I forgot to say this earlier uh when Peter talked about linear to exponential there are two pieces of this that are unbelievably important for the first time in history human history we have a dozen Technologies moving quickly in the past throughout history maybe one technology is accelerating or another we've never had a dozen all double at the same time okay now each is doubling when you intersect them that adds a whole other multiplier okay second and more importantly especially for this question is throughout history throughout human history it's always been true that Advanced Technologies cost a lot and only a government lab or a big corporate lab could do R&D launch new products and services today for the first time in human history Advanced Technologies are very cheap solar energy is cheapap sensors are cheap the AI tools that we use are basically free the blockchain is open source and free it means anybody can get into a legacy industry come in with a beginner's mind leverage new ideas and completely disrupted so we're going to see an explosion of innovation coming from everywhere in the world more from the global South and Emerging Markets because they're hungrier uh and that's going to completely change the world Amen take vitalic bter 18-year-old kid middle class kid growing up in Toronto gets together with a few friends they ignore their professors and boom we have ethereum three to 400 billion ecosystem with eight guys right now I will suggest to you that no Banker in the world can get their head around ethereum all right next question here AE from Kenya and by the way there's some um U bylaw that says you have to be under 25 years old to program the blockchain I don't know why that's written not true not true at all AE uh from Kenya says what happens to businesses that can't be digitized and dematerialized for example farming food production medication and I would say AE that it's we're not going to eat bits I agree with you in that regard but there are elements of the farming business that can be jized dematerialized I'll give you an example and it's not all the way but we're heading towards stem cell grown Meats um where we're going from cellular agriculture instead of growing an entire chicken or cow or Pig we're taking a stem cell we're growing it in a vat where we're Reinventing how we're doing it we're also going to Vertical farming um where these vertical Farms are operating 24/7 uh uh and the growth cycle is continuous and there's no pesticides the ph and the micronutrients in the water we have to realize just because we did something the same old way for a 100 or a thousand years doesn't mean we can't do it better and more efficiently in a brand new way I I want to touch on agriculture right the second oldest uh industry in the world um for thousands of years we've been doing horizontal agriculture right 70% of our freshwat globally goes towards agriculture 99% of that runs off and gets wasted right now we're seeing vertical farming Hydroponics aeroponics just tip over into economic viability and now we're going to see explosive exponential growth in that domain so vertical Farms deliver five times the yield of traditional farming the best calculation we have seen is if you took 35 skyscrapers in Manhattan turned them in vertical farms and ran that just that would feed the entire city sustainably so you don't need millions of square kilometers I just want to make one more crazy point but then I'm going to continue go ahead the five uh most uh prolific food producing countries in the world are the ones you'd expect us Brazil China Russia the biggest countries in the world right because they had the most land guess what the five most top food exporting countries in the world okay so the number one country in the world that exports food is the US number two is Holland the Netherlands okay okay look on a map the Hol it's like this big it's like nothing but they export the second most food of any country in the world why because they've completely technology enabled all their agriculture green houses Etc and they export $70 billion dollar worth of food a year from this little country that's barely the size of a city so that's what's possible agriculture completely changes going forward you need to look at the intersection of these exponential Technologies with farming right so uh genetics is another one there's a new breed of cows out of China that produce 50% more milk per cow uh there's a new strain of uh of rice uh uh p23 I believe it's called that is able to provide eight yields of crops reducing labor by like 60% and then finally it's how do you use uh drones and Robotics and other things right the growing of the plant the cellular elements isn't going to change but everything wrapped around that to make it more efficient of how you produce it how you collect it how you distribute it is the digitization let's go to one more question wait I want to say one more thing about this um uh this is in what we're seeing also in agriculture and around all of this you see the immune system response for example France banned GMOs being shipped to Africa they Bann Uber as well they ban everything know they're but not to pick up every every country has this immune system so I remember this is costing lives because people are starving in Africa and they're banning the shipments I remember talking to the agriculture minister of one of these countries and she had she just said this so powerfully she said it's really great to talk about GMOs but can we eat first right and that just like lands completely and and the we've now served a trillion meals around the world using G how many deaths from those trillion meals and we've not seen any uh uh issues or public health problems so you get this immune system response the amydala response and we operate at a group level country level and unless we have the data this is why the evidentiary part of this is so powerful and so important gather the data run experiments and that will tell you the way to go all right last question here Yanik says what are the essential aspects that make up a team of exponential entrepreneurs you know at the end of the day we're going to be talking about this in the mindset section but it is a group that are united by that massive transformative purpose it's a group that is going to build a culture of datadriven decisionmaking a group that's going to be focused on experimental uh uh you know creating experimental culture inside the organization all of these and it's a group that's you know using the attributes in this book but I would say the top three things for me is the MTP data driven experimental and mindset and of course mindset so we'll talk much more about that so what we're going to do now is we're going to take a five minute break right so if you need a break go get a drink while we're running that break you're going to hear from some of our uh EXO community on why they're excited about being part of the EXO world and why they're excited about the book uh specifically remember this is the second edition of the book the first book's been out for a while Mike Malone was the co-author on both sides Peter and I CL Peter and I was actually supposed to be a co-author on the first book and added a massive amount of value in the first book and now we're launching the second one my publisher wouldn't let me print bold at the same time that this was coming out so so five minute break get some water stretch hit the restroom when we come back the most important part how to build an exponential organization it's going to be the how-to element of this so please don't miss it uh we're on schedule we have an hour and 15 uh left with you uh see you in 5 minutes we're going to run these videos now what EXO has done to change my life is put me in the room with brilliant talent that can help me solve the problems that I see I have Vision I see the future but I don't always know how to get there and so now I have access to staff on demand to communities that engage themselves they're actually interested so I founded uh EXO Angels which also has several of people from the community in it and we've developed this open ex EXO experience game which puts the onboarding tool into your hands to get onto the platform to know what to take as next steps in your life to make this an exponential world so transforming the world for a better future right up my alley and I'm so happy to be here so I invite you to join thank you Hi l from educate for live here congratulations to the open EO community on the launch of exponential organizations 2.0 this framework of exponential organizations quickly became the operating system in every conversation I have about adapting education for modern professional practice and I use EXO in my work with leaders that wants to leverage human development in a tech World once again congratulations on this upgrade hi everyone my name is name is de Franco Chua I from Hungary and my EXO Journey started back in 2015 when I met Salim read his book and believe it or not I sold my company to join the open EXO movement fast forward 2023 I know this was the best decision of my life I've been working on literally every continent with midc corpse and big corpse on their exponential transformation and I've also trained countless EXO coaches to become part of the community and participate in the work we do to make this world a better place I totally found my tribe here this is a place for exponential learning for me and I'm super grateful to be here with all of you hello my name is Michael freebe greetings from Germany I'm a c entrepreneur and health Tech research professor and um I'm very happy that I got involved with the open exit Community because it um changed my thinking acting education research activities and particularly my entrepreneurial activities um by combining expon finial Technologies with abundance Concepts and that would help us uh to hopefully move away from the fee for service um uh concept of healthcare towards more prediction prevention based and Global uh democratization based Health year was 2018 at a chance meeting with saleim over dinner he was visiting Bangalore ended with a simple question would I be interested in joining the community and the answer was yes that found me in Madrid the very next week I went in to learn the framework ended up staying and continuing for the community the community is amazing and it's so powerful I continue to learn every day in fact in The Last 5 Years what I've learned far exceeds my learning in 30 years of my corporate and business life and also it has help me find my own purpose and live that purpose every day which is leave no individual time hi I am Karina and I am grateful to be part of open EXO Community where I have the privilege of meeting amaz in diverse and exponential professionals but the game changer for me was the opportunity to find my purpose and using it as an nor start the ability to transform some of my ideas into incredible and concrete project like founding the exol and the exoman community with the help and support from everybody here around open EXO you you too can transform the world for the better what are you waiting for join us evening everybody my name is Sanjay bana based out in Johannesburg South Africa and the impact that the exponential organizations book as well as open EXO has had on me is that you know post becoming part and parcel of the community literally um you know it shifted my mindset at a very practical level from scarcity thinking to abundance thinking as a result of the community and the learning I got from it and the book literally I've been able to move from operating very locally in South African context to being able to work in a global scale impact organizations and business on the global scale of collaborating co-creating and actually moving Humanity forward so really really massive impact thank you so much EXO helped me believe that company Transformations are possible yes I think they are it helped me understand disruption and how it works which was super helpful during the pandemic and also it helped me gain more empathy with the immune system and I learned how to deal with that so thank you to the EXO Community for all these learnings and thank you saline for the first book and looking forward to reading the second one congratulations welcome back everybody uh thank you for sticking around uh we've been able to maintain an amazing audience and we're EXC excited to serve you here there's a question that popped up uh that we want to kick off with because both of us are dads um we actually both have kids turning 12 right now uh and uh and jev says hey slaman Peter how have you applied this to your parenting Styles I want to raise my kids with an EXO mindset um fantastic uh question he's friends with Joe polish John and Missy butcher um so I think about this a lot and you know I I have three things I want from my kids uh one and has nothing to do with technology one is I want them to find their purpose I want them to have I won't call it an MTP at age 12 but when I was growing up my passion of space like Apollo and Star Trek drove everything so that MTP that passion the second one is uh the idea of asking great questions uh I give this advice to the top CEO in the world and my kids ask great questions it's the quality of the questions you ask right um so important and the third is grit not giving up how about you pal I think there's a fundamental sea change it's almost like linear exponential or scarcity due to abundance all of us grew up uh doing education and parenting on the supply side so you were told become an engineer become a doctor become a lawyer um become an accountant so you trained in on the supply side on a set of skills and then went to the job market to sell those skills right many of us uh I to be started engineering school because my dad was an engineer and I went to medical school because my dad was a doctor right so we all all jobs came from the supply side now we're shifting over to the demand side which is the MTP what excites you what gets you most passionate the best parenting we've seen is where you go what problem do you really want to solve a young child or what really excites you and let them follow their passion and they'll figure it out and give them the belief that they can that the tools they have access to are extraordinary there's no problem that cannot be solved and I mentioned this by the way your abundance 360 conference was one of the best conferences I've ever been to in my life and I've been to quite a few there was a comment that came up when we were chatting with Ray kwell somebody talked about parenting if you went back 20 years ago or 30 years ago and you had a parenting problem right your child was doing something or something happened you had like no resources to get any help you could basically asked three friends that were also useless parents because they had no idea and you asked your cousin and your buddy and and your and your mother who was also had no idea now when you have a problem with your child how look at all the resources online parenting groups support systems unbelievable people gurus around the world who've studied this the amount of available information to do parenting properly today is 100x what we had two generations ago right so this is why the kids today are so unbelievable they're going over just much better parenting they gone from a scarcity to an exponential uh Point um let's skip into the next couple of sessions yeah we're we're going to be going very briefly uh to implications of exos and then jumping into building mindsets mindsets and then building your exos all right okay so let's talk about the implications of an EXO because what we want to do is okay you get the model when we lift up what are the broader implications for all of us in the first book we identified nine major implications like have we have a section depth to the 5-year plan if you're creating a 5-year plan by the time you've done your the plan is out of date or you're spending more time maintaining the plan than doing what you're supposed to be doing rent don't own we've heard that uh one of my favorites is trust beats control and open Beats closed right uh Jerry msky one of our community members really framed this beautifully he said uh scarcity equals abundance minus trust right so just think about that for like an hour um and if we can trust our people if we're all aligned on an MTP then you can basically let them do what they do and be an open environment it's always going to be the closed environment so those are the first let me pick one more on this list here which is number nine here which is everything is measurable and anything is knowable we're heading towards a world of near infinite information right where we have trillions of sensors and if you wanted to know what the average spectral color of a man's jacket is walking down Madison's Avenue the cameras are there the data is collectible your AI can analyze that tsunami of data and then you can start to ask does it correlate with an advertisement campaign from you know any time in the past so the quality of the questions you ask once again is so fundamental so those were from the original first addition we've added nine more because naturally we need to double right so we've added nine more and I'm just I'm not going to cover these in detail you can go read them up in the book but they're really big implications right for example we found out talking to Steven Cotler that that if you have an EXO type structure you generate a lot of serendipity and you generate like an organizational Flow State right very powerful we're going to this decentralization da kind of world uh Peter talks about everything being AI enabled yeah we're going to be at a point where everything is smart right uh I've seen these $ AI chips are becoming more and more capable everything is being connected to 5G soon to 6G so everything's addressable and knowable so that's going to change the world um the a key one is datadriven leadership right in throughout business history you became a leader in a company because you had deep intuition about how to run supply chain for the country then you became the global supply chain half of that because you knew which suppliers to go after and which ones were most reliable which had the best payment terms Etc but today with the world changing so radically all of that experience is IR relevant now you need to run a bunch of experiments and be ruthlessly datadriven and evidentiary based right so datadriven leadership becomes the the critical path of how we're going to make decisions going forward um another one that we love is called technological socialism okay traditional centralized government socialism fails because you get inefficiencies and you get corruption invariably you get corruption but when Uber is matching a driver to a passenger an algorithm is running that matching it's hyper efficient um it's kind of a socialist application it's the sharing of assets amongst a large group of people and now you can have the benefits of socialism of asset sharing amongst a large group of people without govern centralization and without lot of government oversight needed this Frame this was coined by Harry clur a very close friend of yours Peter and we think this is going to be a fascinating thing to see in the future of governance um the last one I'll I'll talk about is that government departments uh over time I mentioned uh companies and impact project but government departments are starting to become exos uh n Nishan dearin who ran or advised the ministry of oceans in morius pinged me and said hey I ran we designed the whole Ministry based on you we're a small country we have 2 million square kilometers of ocean to navigate so they brought the fishermen into a giant Community to act as eyes and ears etc etc so all of these added together and again go read the book we've got a lot more detail in each of these but we think there's all of these huge things going to happen as a result of this new world that's now exponentially driven and organizing exponentially for this okay um the next thing that we want to cover is really really critical and I'm going to pass it to Peter to talk about mindset Peter over to you yeah uh this is probably the area I'm spending most of my time in I think it's one of the most important things let me frame this in a way that hopefully you get so the question is what matters most to the greatest leaders out there whether it's Steve Jobs Martin rothblat Elon Musk Martin Luther King uh you know whoever it might be what is it that enabled them to be extraordinary leaders was it you know the technology ology they had was it the money they had or was it the mindset they had and I think everybody would agree that what enabled these leaders to navigate you know challenges and opportunities was their mindset right your mindset is how you deal with things in an instant you know and if your mindset is that important one of the questions I have for you is what mindset do you have and what mindset do you need to navigate the decade ahead I think it's one of the most critical questions and you know uh you mentioned earlier Dan Sullivan and strategic coach so it was 12 years ago that I made a 25-year commitment uh to run a program called abundance 360 uh a360 it's 360 CEOs entrepreneurs business owners uh that I Mentor over the course of the year we meet for 4 and a half days in La every March for the abundance 360 Summit and then around the year we run these implementation workshops these mindset masterminds and we do this member matching uh and for me my mission is to serve exponential entrepreneurs if you're interested in abundance 360 go check it out it's a360 uh we have a small number of openings we take each year but my goal throughout a360 throughout the year is to help you maintain your mindset because because every day that we're bombarded by CNN I call the crisis News Network our mindset goes towards scarcity and fear now let's be clear our brains our neocortex is a neuronet and how do you train neural Nets you train neuron Nets by giving them evidence after evidence after evidence after evidence right so if you're watching the crisis News Network a constantly negative News Network you're seeing every murder on the planet delivered to you over and over again in color in your living room you're going to be in fear and scarce today guarantee you but that is a mindset that puts you back on your heels and is the worst place from which to build an EXO and be an exponential entrepreneur so for me there are six key mindsets that I teach uh that I run about that I practice myself uh and I'm just talk about a few of these one second because I think they're that important I think mindsets I could add purp driven mindset to this list which is your MTP it should be you know Step Zero on here but I think your mindset is the most important asset you have so we talk about a curiosity mindset really it's about asking great questions it's about driving creativity it's about staying adaptable it's about being able to Pivot and evolve the Curiosity mindset that beginner's mind as SL mentioned is fundamental uh to you and if you're stuck reacting because of this is the way it used to be in fear and scarcity you're stuck you're not adaptable you're not agile you're the dinosaur not the furry mammal when the asteroid is striking the second mindset which uh abundance 360 is named for is this abundance mindset and I've got uh right here I have these mindset mugs um and mine is my abundance one and on the back it says how would you live a life uh how would you live life if there was no scarcity what is yours say how can you create a life which which one do you have I've got the exponential 10 to the nth plus mindset which is how can you create a life of 10x impact right so your mindset is shaped all the time it's shaped by the people you're with and the conversations you're having it's shaped by what's on your wall what you're watching what you're reading I guide and guard my mindset every moment of the day uh it is that fundamentally critical to me uh abundance mindset is a perspective shift it's a realization that there is nothing truly scarce you know what I talk about in we talked about this in abundance talk about this in exode 2.0 is with a scarcity mindset if you have a pie and people are coming over for dinner and more people come over you have to slice the pie into thinner and thinner slices and an abundance mindset you know it's no we're going to bake more pies right it's a perspective shift we don't have water scarcity on the world live on a planet 2/3 covered by water yes 97.5% is salt 2% is ice we fight over half a percent but there's Technologies coming we're about to launch a 100 plus million doll X prize for large scale desalination coming up so technology is a is a resource liberating Force right technology enables you to liberate resources like solar like Fusion like water to two more mindsets an exponential mindset I think is fundamental to our EXO conversation here today you know uh it's the notion that we're going to make as much progress in the next decade as we have in the past Century and it's understanding as an entrepreneur as a leader that every company is going to be transformed every industry is going to be transformed and you have to be looking at disrupting yourself before someone else does the final mindset I'll me I'll mention here is a moonshot mindset ET and I've learned this mostly from my friend astr teller you know who says listen in a moonshot mindset you're looking to go 10 times bigger a th% when the rest of the world is looking to improve by just 10% and moonshots are one of the most extraordinary things and I if I could uh wish anything for my kids and for all the entrepreneurs I support is for them to find that MTP and that juicy uh moonshot that drives them that sense of accomplishment amazing and and just consider how I love what you said about you spend every minute of the day managing your mindset right how many people kind of have the self-reflection to do that am I a scarcity or an abundance mindset if you're trying to kind of build a company and build or navigate any of this world you need to be able to operate and self-manage your own mindset I think that's so so critical and by the way as a CEO as a leader your mindset becomes the pervasive mindset inside your organization if you're in fear and scarcity so are your employees right uh you need to lead by example in the mindset and build the structures I don't care if it's the posters on the walls the mugs the conversations the filter by which you employ people uh do they have the right mindset uh critically important last night when you and I were trying to finish this we had a mindset of TCH I call that yes tired cranky and hungry so how do you how do you navigate some of that all right so uh let's get to the meat of this we've given you the basis the linear exponential how fundamentally the world is changing we've talked through the model and the characteristics of the model we've talked through the mindsets that you need and the broader implications of this I one of the comments I make is the next 30 years of the world will dictate the next 300 we're in one of those inflection points that's so profound that everything is changing literally in front of us and you see that when we wrote the book the first edition 10 years ago this was a very hard conversation you have to remember that Tesla didn't really exist um SpaceX didn't really exist right after I want to just touch on one data point just to kind of bring it back because one of the questions was how does this work in a very Material World when NASA was doing space shuttle launches it cost about $600 million per launch right actually it was a $4 billion budget of people infrastructure 20,000 individuals and if they launched zero shuttles it was infinite per launch if they launched one shuttle was four billion a launch two shuttles two billion a launch four shuttles a year the average was like three or four a year was a billion dollars a launch okay so that's the average Space X I'm a space cadet you are so SpaceX comes up with their total paradigm shift and drops it by 10x to about $60 million a launch okay so that's incredible now we have relativity space and a new breed of kind of 3D printed where what are how much of the rocket is 3D printed well the uh the first one uh the Teran one was 90% 3D printed and they'll probably stay around there they're going to be used some non3 printed Parts in their Teran R which is a reusable and of course Starship is coming yeah which wants to drop it another 100 fold yeah so we're going to get down to a about a million dollars a launch so think about this a rocket launch is like physic IAL fuel that you need and physical stuff and it's had a 100x drop over the last 20 years and will probably be another 100 in the next 10 years okay so that's in a very traditional physical environment every industry in the world is going to transform and so this is the why you need these mind sets is so critical going forward so let's move to the final part of this which is how do you build an EXO uh this is kind of like the meet and potatoes of this it's so critical to understand the steps I want to first uh hear uh for a few seconds from Jeff Hoffman who's the founder of price line so built a massive company Global multi-billion dollar value he runs the global entrepreneurship Network which is close to 30 million entrepreneurs around the world uh let's hear from Jeff I am Jeff Hoffman the chairman of the global entrepreneurship Network and Saleem on behalf of all the people in our Network at Global entrepreneurship Network congratulations to you and Peter we are excited about the book and to share its content across our Network our simple mission statement at Global ENT preneurship network is to help anyone anywhere start and then scale their Venture so everybody's trying to scale and what's needed out there and what we do by building ecosystems for entrepreneurs is drisk and increase their odds of success which is exactly what you guys are doing and what the book is for so thank you Seline all right talk to you soon Jee all right so let's talk about what it takes to build an EXO right we have a 12-step program it had to be 12 steps to be 12 step you want to hark back to kind of things that work oh by the way just to as a as a thing can I go back to the full shot so we have behind us a wonderful rocket I call this the spinal tap rocket if you've seen the movie spinal tap they tried to build a huge set and they put the wrong feet versus inches and they ended up with a so I call this the the the spinal tap rocket because of stuff by the way for those who've never seen the movie if you go into a Tesla and turn the volume knob full up the volume knob goes to 11 and you can go find out why that's the case is kind of amazing all right back to how do you build an EXO all right so let's go through some of these steps and Peter jump in when we go back and forth on this step one and most important is what is your MTP okay hopefully you've heard this over and over again enough that it sunk in we will beat this into you uh uh and because it's been beaten into US it you have to select what fundamental problem you want to solve right so that's step one and you use the moonshot Planner tool that Peter mentioned use your own devices we have an MTP tool ourselves ask your friends when I was young what did I say what I wanted to do what fundamental problem do you want to solve and go by the way once you have your MTP I want you to challenge yourself at a cocktail party to share it out loud don't be embarrassed by it like you know my massive transformative purpose is and what the hell is an MTP well you explain it and by the way when you go outward facing with your MTP it brings people to you you'll be amazed oh you've got to meet this person over here I've Got a Friend you've got to be connected with it's a magnet to bring uh Partners Community to you you know when I say a cocktail party I want to transform civilization it does it doesn't really work so I think I got to think about that all right so number one you've got your MTP okay number two uh um critical um join or create communities around that MTP so if your MTP is cure cancer okay you can either create Community around that because there's lots of people interested in that or go to platforms like Meetup or others that have thousands of user groups and existing communities that you can join why you want to find like-minded people uh you want to share that MTP you want to build a community or connect with your your MTP to the largest group of people possible around you so build and connect or just join uh communities that reflect your values in your MTP okay yeah I mean the worst thing you want to do is have a team split because we have different purposes right MTP is like pulling a string it unifies it pulls you together that's right so composing a team around that based on your MTP is fundamental um by the way in the future I think we'll be hiring based on the alignment of an individual's MTP with the company's MTP because if there's not alignment on that there's no point really working together on things right so that's going to be kind of a prediction for the future all right step three is put a team together and here we Rec commend four roles a CEO founder type Visionary a product person a builder and a business model Finance person okay and lots of startup uh theory has around what what what composition should be um you know you and I have been talking about the idea from Jeremiah oang and a few others that the next billion dooll company will be three people leveraging open Ai and some of the other llms out there where the CEO takes care vision and marketing the C the product guy is is building using llms to build the product and the operations guys making sure all the AI chat Bots are operating and we think that will be the next billion dollar company step four is uh your breakthrough idea and notice here that it's step four and it's not step one right um when you've got your massive transformative purpose which is going to last you a decade or two now you're going to find out what technologies what business model is going to be in service of transforming that because if you start with a technology that technology may not last very long it may be obsoleted at the rate we're going in a year or two what really keeps this all focused train on the tracks is in fact that MTP once you have the basic idea right now you need to kind of start putting flesh to that to that raw idea so you have a a fill out a Lean Startup business model canvas coming from um a Alex osterwalder uh or the EXO canvas which was developed by our community you can find it at exoc canvas.com if you fill those two out basically it talks you through how to think about Partners channels customers vendors value proposition etc etc so You' fully thought through the idea before you start building anything please don't build anything until you filled out these canvases to get a rough sense because it'll tease out any mistakes you make and you want to go as long as possible without building things I remember when I was building angro which we did um my co-founder Rohit instantly wanted to go talk to 100 people about it I'm like wait no you'll give away the idea he's like no no I want free feedback on the idea from 100 people I get free feedback can I stress that um an idea is the easy part uh I remember uh a conversation with Elon who said when you look at the relative value of the idea to implementation the value of the idea rounds to zero it's all about implementation manufacturability uh and implementation uh again I made the same mistake early on just you know not wanting keeping the idea close but you lose it's a lose lose lose when you don't share the idea because you don't find out all the ways it's failed all the people that can help you believe me if it's if you're the right person to make it happen you're driven by the MTP the idea is just the very first incremental step right so now you have your idea and you've built your business model canvas and EXO canvas Etc the next step is to find a business model my favorite part is finding the business model I I am the most excited I'm more excited about business model Innovation than I am around uh uh the Technologies I hate the business model part really yeah I I struggle with this a huge amount um we've been struggling for years in in EXO to find different testing different business models Etc Etc and I'm just like God dang can we just go solve talk about we'll talk more maybe I could use some advice from that let me talk through the business model side right because there's a really big inflection point that's happened around building a business and finding a business model Chris Anderson who's the editor Wired Magazine and created the DIY Drones community and he invented the longtail idea Etc wrote this book a few years ago called free arguing that as we make information more widely available every business model goes to free then you have a bunch of layers on top of that free information digital demonetization it's demonetization and you have an advertising business model or a subscription model or something let's use the example of Music we used to have eight major music studios selling scarcity selling you the physical cassette the CD the DVD selling scarcity as their business model then we digitize music right all of those we pretty much disappear and now you have two platforms iTunes and Spotify selling you abundance on a subscription model right so that we saw in the music industry we've seen the same thing in books and in news we'll see the same thing in transportation and healthare and education is going to happen so he basically argued that most business models will go to free and it was a very seminal book uh around at the time Kevin Kelly who we talked about already um wrote a wrote a response to this saying better than free would be one of the business models around this and he wrote a blog post called better than free uh everything that Kevin Kelly writes is amazing but please go read this blog post it's seminal if you want to build an EXO what he does he identifies if the base information is basically widely available like digital health information or so on there's about one of eight ways in which to add value to that so if you look at this list um uh uh Airbnb is giving you accessibility Uber is giving you findability uh Facebook is giving you personalization financial markets often sell immediacy Etc and if you have an information based industry you're using one or more of these and we think what Kevin's identified here are the business models of a digital world and we think more and more 21st century business models will focus on this aspect of this so critical to go check this out now just on a slight segue Uh Kevin talks also about they wrote a book called what technology wants yes right basically saying the the pace of technology is inexurable now past our human ability to limited which is an AI conversation that we could have uh at some other point but anyway technology wants to be free technology wants to be free and it wants to be it wants to be abundant uh even though human nature is like keep everything scarce and try and limit things right so now you have a business model you've got some sense of what it looks like let's go to the next few steps of building an EXO okay once you have the business model uh the next step is to build the MVP and this is again coming from Lean Startup thinking um and it's really really critical what's the smallest uh feature footprint of a product to give you to get it out there and launch and test with customers hopefully this is second nature and it's obvious to you but building an MVP again this is about building a datadriven company right we think we know what the customers want but we don't actually as as Steve blank said no business plan survives contact with the first customer right because you think you have a sense but when you get out there I remember Reed Hoffman saying it a different way if you're not embarrassed by your product when you launch it you've waited too long yes why because if you wait till it's perfect you you're going to get it wrong and you're going to you're you're going to make assumptions that you haven't validated so the minimum I remember when I was running Brick House Inc Yahoo's incubator we had Katarina fake uh the founder of Flickr come in and talk to the engineers and she said talk to a team and they go she goes what's so great about your product and they go we have 20 features in this product it's going to be beautiful Etc and she said all right build a two that you think think are going to identify the two features out of the 20 that you think are going to make it work and make it succeed launch those two and then get a feedback loop going yeah right you Ash talks about very similar he says you know when you look at all the things you have to do in a company instead of ordering them the way of a priority that you might have reprioritize them uh in order of which ones are going to teach you the most and do those first right it's constant learning in this regard constant test and the eighth step here is uh is validate marketing and sales again this is part of your MVP how you going to Market it how you going to sell it how you going to price it are you marketing it direct are you going through channels through Partnerships all of this is is fundamental uh to get to scale um and validating Marketing sales is managing your funnel right how many people do you have interested in the product how many have signed up for the free thing how many people might sign up for a paid model what's your churn etc etc and so there's a whole now very well understood scientific uh very clear metric process on how to manage your funnel okay like if you have if you're an Enterprise sales which takes like nine months to do an Enterprise sale then you better have a big funnel and figure out you get a lot of stuff in the front because only a few are going to drop at the bottom and keep you viable right so getting your funnel right managing the sales funnel is absolutely critical in this piece of this so now you have at this point you should have what's called Product Market fit which is you have a product that people are paying for and with feedback from customers that they're excited about your product if you don't have both those things you don't have product Market fit go back to MVP or go back another step or figure out another breakthrough idea everyone listening is probably saying that's great if you're a startup but what if you're running a company it's at 50,000 employees and you've got you know how are you still building an MVP still building an MVP because the only way you know that something's going to work today is by getting it out there and iterating okay and big companies are very very uh bad at this because they're trying to get it perfect before you launch it people want to wait till it's perfect Etc it never happens this way look at the biggest companies in the world and they've all been iterating very very well Amazon is famous for constantly iterating they had no idea whether um Amazon Prime would work right you've got a bit of experience tell the Amazon Prime story it's so fascinating to see the mentality and psychology there yeah Jeff Holden uh who is the VP uh of product both at a chief product officer of both at Amazon and Uber who was on my board at X prise tells the story you know when Amazon Prime was first proposed as an experiment uh it was considered a foolish idea you know Bezos basically said try it and now it's you know what percentage of Amazon's uh Amazon Prime is a like I think it's 20 no was 25% the killer one is Amazon um web services right and this is now again again another example by the way I want to give a shout out to an Amazon policy that I completely love if you have a big company I dare you go home and go to the office tomorrow and implement this policy they realize that in any company it's really easy to say no to an idea right one of 20 people can say no kills the idea whereas if you're an in if you're a startup you can go to 20 investors one says yes you're off to the race so how do you deal with that impedance mismatch in a big company so they came up with a policy and it's called the Amazon institutional yes so if you're inside Amazon and you come to me with an idea and I'm your manager I'm not allowed to say no to your idea my default answer has to be yes and if I need to say if I want to say no I have to write a two-page thesis as to why it's a bad idea and post it publicly on the internet right so they've created friction and embarrassment to saying no it's way easier for me to go ah just go do your idea I'm sure you're going to fail at the next level Etc and now the product gets tested and at least now you have real data one of the results of this policy was actually Amazon web services nothing to do with their core strategy not on any road map nobody could figure out how to say no to it and now it's one of the most successful products of all time and delivers 75% of Amazon's prod profits globally it's like it's just unbelievable another example is Kickstarter right hopefully you've all heard of Kickstarter played with Kickstarter uh you know it was thought of as a platform for young companies to try their product out get commitments early on what we're seeing is large corporations actually trying things on Kickstarter as well to get early information about who wants what color who wants what different product elements my my fellow waterl Grant Eric majovski movi right Pebble watch Pebble watch wanted to he went to this is a great little story he came out of ycombinator right best incubator in the world with the best network in the world try to raise $100,000 to to to build a prototype of his running watch all the investors said no because silicon value is very biased against Hardware at the time so now he's got three weeks of cash left right he's like about to run out of money so he puts up a a project on Kickstarter desperately saying can I raise $100,000 can I pre-sell my watch raises $10 million on Kickstarter right now that tells you two or three really interesting things one all the investors were wrong which is fine this is why investors use a portfolio approach more important if you uh have crowdfunding why do you need the investor and now the sophisticated investment ecosystem are on Silicon Valley is rendered Irrelevant in a sense because I can crowdfund something but third and maybe most importantly to the point you're making for the first time in business history you can validate demand for a product without building the product yeah right throughout history you had to like build a product and go do you like it or not customer goes I hate now Eric has a new problem he's got to build a lot more watches he's off to China on the next flight that's the that's the that but that's a great problem to have I've got $10 million in the bank now I've got to go do this so um uh by the way Sony Corporation is now launching Anonymous Kickstarter campaigns and then funding the successful ones because it's just an easier way to validate success so really critical data driven decision making it's not listening to The Experts who tell you what they think yeah so constantly run experiments validate your Marketing sales okay step nine once you've got a funnel out there and so on is to now implement the EXO attributes of scale and ideas uh do as much staff on demand community and crowd Implement algorithms leverage assets figure out engagement models for your product and then all the internal mechanisms what's the inter how you going to what interfaces do where do you want to automate the interfaces between you and the customer what dashboards are you running how are you doing experimentation and what experiments are you running right um how do you decentralize decision making and what social Technologies are using clear right it's not implementing all 10 it's necessary right and it's you might actually begin with a couple of these and then move towards others as part of your plan that used to be the case okay so in the first book we we our research indicated if you implemented four of these then you got became an EXO but I think today the market basically says the data now shows that if you're not implementing all of these somebody else is right uh and so the more you implement these the better the faster you can Implement dashboards for example the faster you've got a real-time sense of what's happening with the business the the more you can Implement experimentation the more you're implementing a learning organization and a few of these there's no excuse not to be implementing them they're just the fundamental best practices as an entrepreneur today yeah now um really critically I'll give you a great example is a company of Australia called smart group and what they do is every quarter they pick they get 10 people each of them picks one one of the scale or ideas attributes and they Implement that attribute so they have 10 projects going on on a Non-Stop basis implementing scale and ideas uh they grew 5x over a 2-year period by doing this right they were already a public company by the way so this is not a small company they were already a public company and then they grew 5x by applying the full scale and ideas methodology our 10th step is to implement an establish a culture uh but I would say you know a culture begins from the very beginning uh and it's you know what happens when the CEO is not watching it's the interactions between your employee base between your Founders and again it starts with that MTP it starts with the original Founders and that culture is going to drive everything elements of the culture I really personally always want to be driving it's data driven experimentalism fundamentals there yeah uh now we found over the years that having an EXO structure um takes out a lot of politics right as we said in the implication most of the of in most traditional companies almost all the conversation is about what's happening on the inside that person's product didn't work did they get budget for that thing why is that guy trying to steal my team members and and within EXO most of the conversation about what's on the outside are we solving the fundamental problem or not Etc so that's critical and by we found that by implementing more and more of the attributes the culture stays young alive a learning organization oriented constantly towards the MTP okay uh Step 11 um constantly retest your assumptions this relates back to experimentation but you got to retest are my is my pricing correctly am I really following my MTP because often you can drift off to the side oh my God we we I've been there we had EXO almost accidentally became a consulting company and we spent we were spending more time advising big companies than trying to solve big problems we like the community actually rose up and and go hey what happened to the impact side of it and we're like oh dang we we kind of accidentally left that R cuz you're in your own soup it's really hard to gauge and see what is happening around you so make sure you have active advisors that are constantly calling you out and testing you against the what you're doing are you aligned towards the MTP or not uh Bert Rutan who is the famed Aerospace designer engineer at scaled composits he built spaceship one that won our $10 million x prize has a quote I love he says question don't defend yeah if you're building it's a part of a cultural attribute if you build a culture which asks you know which allows questions to be asked at any time say defending yourself as soon as you start Defending Your Position you're backed into a corner and you're not able to explore new areas you're not telling yourself the truth you're simply defending yourself so question don't defend is one of those cultural elements of asking questions you know the video of Bert talking about this this is so amazing he goes I've never been so goddamn excited as we trying to win this win this prize I want to just do a quick shout out here yeah um it's so amazing to watch an X prize unfold um and the the rationale behind this is when you put up a $10 million prize something like 30 or 40 teams will spend like up to $150 million in R&D trying to win the $10 million so it's the most leverag model for Innovation ever um where you can crowdsource hundreds of teams how many teams are registered for the carbon exraction PR yeah we had uh 1,200 teams going after elon's $100 million we just launched this Wildfire X prise and uh after the first month we have something like 60 or 70 teams all designing different ways you know detecting the fires not the hard part but how if you found a a a wildfire igniting that's moving and you had to put it out autonomously in 10 minutes without humans in the loop how would you do it right and so it's fun and it's exciting and and it's changing the business model right the business model again I love business models the business model for insurance was always you know fire insurance will pay you after your house burns down what about flipping the model and saying our fire Insurance prevents the fire in the first place right that's yeah that's right I want to just do an an anecdote related to the MTP one of my favorite stories at X prise and you watch all these teams like running around like mortgaging their house hoping my favorite story is the the oil cleanup X prise funded by Wendy SCH the $3 million priz for anybody that could double after the deep water Horizon oil spill the turns out the oil cleanup technology has not changed since the 1980s since the xon Valdes because there's no economic incentive so very quickly prize gets put together to say can you double the effectiveness of existing oil Technologies can you so we had 340 teams around the world who registered to compete for this to try and reinvent how do you clean up oil spill on the surface before it hits the beaches and the fisheries and we had amazing teams the top 10 teams one team was a family out of Alaska that mortgaged their home literally and built technology that came in the top 10 another team you can't make the stuff up was a tattoo artist and his client the two tattoo artist uh had a t two artists had a vision and an idea his client who's a dentist uh literally underwrote it they built a scale model the guys tested the GU jacuzzi and the first time it saw full scale oil spill was at our test facility and they came in second I mean and it's like what's what's great about that story right is if you're a VC or an investor and that team walks into your office you are never funding that team right like you're a dentist you're a t you have no experience no background no expertise in this what do you never are you funding that team and yet you would have lost out right and this is what's so magical about sourcing from the crowd you never know what you're going to get but if you have an abundance of people working on it that problem is always going to be solved and this is so critical and by the way check it out at X pri.org please get involved uh Sim is on our board Nan sari who funded our first $10 million prize um and then flew privately to the space station uh for 10 Days is now the CEO I serve as executive chairman there we've launched $300 million in X prizes we're about to launch another quarter billion dollars our mission is to crowdsource solutions to the world's biggest problems not for ideas but people actually go and build this stuff and demonstrate it all right final step in building an EXO right is turn try and turn yourself into a platform okay if you look at the history of the internet Yahoo Blackberry Nokia all failed to become platforms Google Apple Facebook Amazon all successfully became platforms which means you become like a coral reef and you feed an ecosystem with people that are making their living off you and now you're wired into the infrastructure how incentivized am I to support your platform when it's the means by which I earn my Revenue yeah the average YouTube professional today is making like $4,000 a month it's crazy it's like an unbelievable amount of uh of of kind of value that's being generated created Mr Beast who's the probably the most popular YouTube uh YouTuber out there found out something amazing about his background he studied YouTube videos for three years before he he created his first video because he under wanted to understand the dynamic so fundamentally understand the algorithms that drove the economics behind it and it's all about algorithms uh let's share uh two exos just as to hammer this in then we're going to go to your questions um so one is a company called thrashio was actually built by a fraternity brother of mine Carlos Cashman and what Carlos and his Partners did was they went onto Amazon they went on to and found companies that had low revenues uh product sellers who had low revenues but had extraordinary uh customer reviews and if you think about it what's what does that say well this supplier doesn't have a great marketing engine and what they ended up doing was they began aggregating these first first they were just in them and then somebody said why don't should buy the company and they're like oh so they started buying these companies at one point they put up a sign at an Amazon Marketplace conference if you're over a million in Revenue we want to talk to you and they had a lineup around the block of people wanting to talk to them so they went Zer to couple of billion in two years they went from Z to2 billion in Revenue okay just think about that 0 to2 billion in revenue and because they're using an AI to scour the marketplace the whole thing is automated they can literally find find a product reach out to the seller and say hey we we think we can make you bigger do you want to sell boom so this is like a Next Generation cpg company people startups are now saying I'm the thio of this or I'm the thio of uh dry cleaning or whatever it's been unbelievably uh successful the highest rated EXO that we ever saw cuz we scored them all on the that model is GitHub right GitHub was a is a platform where developers can share uh code and watch each other and and kind of and I can rate your code you can rate my code so they've created and they put in all the elements gamification uh algorithms staff on demand Etc now they were 8 and A2 years old and Microsoft bought them for $7.5 billion dollar right and remember talking to the accounting partner that was managing the acquisition for Microsoft and he was freaking out he's like I don't know what to put on the balance sheet uh this has company has no assets no intellectual property and basically no Workforce like what are we buying so he's literally trying to kill K the deal because he can't figure out how to put any value against it in the Amazon in the Microsoft accounting systems and finally SAA Adela says just buy the damn thing I want the community and now with cha PT we they have access to all the GitHub repositories because GitHub has has been that successful the most F my favorite thing about GitHub is because it's open source and everybody could fully transparent your salary if you're a software developer in Silicon Valley today your salary has zero correlation to the university you went to the degree you got or the grades you got it's 100% what is your GitHub rating and that's how you're that's how you're paid right so the value of a computer science degree just went to zero so this is a profound con commentary on the future of higher education as we apply that to doctors and lawyers and so on Chachi PT will really transform all of this let's note by the way since two the year 2000 we have written about three trillion lines of code around the world and when an L has access to all those three trillion lines of code the next code you write is going to be that much better because if I'm a developer you did software development when you were younger you you write maybe 50,000 lines of code 100,000 lines of code never do you have access instantly in real time to three trillion lines of code so the the what's coming in the future is going to be unbelievable the same thing in medicine right I like to tell people you know every day there's 7,000 medical journals that are publ uh articles published in medical journals 7,000 how many has your doctor read this morning um well an AI diagnostician will have consumed all of them right we're all going to have ai co-pilots whether you're a doctor a lawyer an artist a physician whatever might be I like the way you put it where you go it's not an AI it's going to take your job it's a human using AI that's going to take your job right and so it goes very quickly all right we've got 20 minutes for questions here um and let's jump in um all right Max asks what tools do you use to improve the quality of the questions you ask what metrics do you use to measure your their utility and relevant so first of all Max I hope along with everybody else here the instant response is uh is is chat GPT uh is I mean even if you don't know uh what question to ask going in and saying I'm trying to learn about this area what are the top 10 questions I should ask is an amazing beginning uh to your journey um I was I was doing a presentation to the top sea Suite of one of the biggest consumer products companies in the world and I asked chat GPT four questions what would disrupt this company if I was a startup how would I attack this company what disruptive Technologies could I take advantage of if I was the company uh and I showed it to them and they're like holy crap that's like half a million dollars of Consulting for free so I said I'll send you an invoice um but this is this is critical because the the key when you can get into the routine of it is you get into the habit of just asking chat PT to help you ask the question here here's the challenge we don't know how to think other than the way we know how to think yeah it's obvious but we're Limited in that regard so chat GPT the other option is obviously getting a group of people together who are knowledgeable and brainstorming believe me at every executive meeting every board meeting I have I've got chat GPT open uh in a window and I'm having a side conversation uh it's an extraordinary superpower that's only going to be getting better H all right Juan asks given the most finance and Tech improvements are mainly led by financially stronger countries uh is it really possible for developing countries to launch a successful EXO yes without question not not only is it more possible I think it's more likely going forward why because the cost of launching an EXO has dropped to near zero right so there's no limits now to barriers to entry you can basically get the product Market fit for a few hundred and you less competition to start you also the potential to have aat Arbitrage in some countries that don't have laws against something yeah perhaps able to go in there and create a regulatory structure that supports you easier than in a crowded field crypto not allowed in the US basically I mean come on uh so lots of lots of possibility there I I want to mention one more point about this is that in emerging markets in developing countries number one remember what I said earlier you don't have to unlearn 50 years of Harvard thinking you can leap frog straight to new models right I'll mention again Marcado lib the biggest company on the buus Irish Stock Market is an EXO right so now we're going to see the most successful companies so what we're now going to do because we have that Fortune 100 data um um chander nagpal just finished scoring the public companies in the Indian stock market right now we can go and show every company where they where are they missing stuff and create an investment thesis around that over time investors will not invest in you if you're not an EXO because you're just going to do uh that much better if you're organized this way I'm going to say it again by the end of this next decade every company impact project nonprofit government department will be structured this way just because it's better and we have the data and evidence to show that the opportunities in Emerging Markets are a thousand times what they are in uh the the Emer the the Western world and the industrialized World um and you're hungrier and you're closer to the problem right if I try to create a future for Water Solutions in Silicon Valley I'm like 5,000 m away from the problem right whereas if you're in Mexico City or in a flla in Rio you're 10 steps from the problem so you're going to create much better Solutions going forward Alexandre ask can you have a personal MTP and an MTP for each company project you have or does the MTP need to be unique uh Alexandre absolutely uh I have an MTP for myself it's the same as the MTP for abundance 360 and if you're the founder a lot of times your MTP will translate into MTP of your the company that you're starting you can have an MTP for your family or for a Family Foundation or a country when I was with the prime minister of Greece last I was saying you know Greece needs a massive transformative purpose it's that Banner uh that L lights the world as a beacon to come and support that MTP uh my commentary to some of the Greeks when I was once over there was that you are the birthplace of democracy Civics education they all need to be radically reinvented rebirth them let's reinvent education Civics democracy in Greece because that's the place to do it yeah so please if you go through the uh uh moonshot planner.com uh platform uh you can go through multiple times and develop one for yourself uh and develop one for your for your company your startup and if you're inside a large organization uh a company that doesn't have it and believe me it's not a uh it's not a value proposition it's uh not a pitch proposition it's not you know we want to increase shareholder return you're Cod to your CEO and talk about the importance of getting a massive transformative purpose and if they don't listen then you leave yeah and start your there's no point go start your own do what Eric you want did and go off and build your own now that that's why you need the Mt p uh it turns out when you do things for the money it never works when you do it for the passion for solving that problem nothing will stop you um just a quick shout out again to startups and the resilience needed by invest by startup teams um very few people know Google seems very successful right now but at the time there were 12 other search engines right so we actually did some research and we found out for some of the big products out there how many times did they have to do an investment pitch before they got funded and this is this is in the book so for Google it was 340 investor pitches so Larry and Sergey got told no we will not invest in you 340 times because there's a dozen search engs out there already until what if they'd stopped at 330 right how many other entrepreneurs stopped like one pitch too early before they got funded it's an unbelievably difficult thing you need an unbelievable amount of resilience meaning you have to have an MTP to keep you excited over time yeah same for me an next prize 150 pitches of no no no no until I met anusa anari and you have to come back to it each time with that same level of passion and enthusiasm and so unless it's core and in your heart and soul it's not going to succeed and definitely one per project like if my mtps transform civilization that's not an obvious project but I could have a moonshot of let's update all of our institutions let's create a category of entrepreneurs that can go transform the world because this community you people on the call are the only people that are going to change the World governments aren't going to do it big companies are too interested in the status quo so you're the folks right so let's give you the tools and the inspiration yeah by the way if you go to learn. open xo.com there's a full kind of training modules on how to learn how to be in EXO Etc that's available uh through the exop pass all right let's go to the next question uh pkit says what will happen to the masses of the population who don't upskill themselves uh will they be replaced by AI um how will that affect unemployment all right let me crack a lot yeah there's a lot here so think about this as having a a slide rule to a calculator if you're still trying to do calculation with a slide rule and everybody else has a calculator you're going to be left behind right as Peter says it's not going to be AI that takes your job it's somebody using AI that will take your job now unemployment we have very strong feelings about when we've seen major technology injections in the society uh everybody freaks out and goes oh my God there's going to be mass unemployment we've never seen it before I'll give you a specific example I'll give you two examples one is when we created ATM machines in the 1970s there was all this hand ringing what will we do with millions of bank tellers we'll have mass unemployment thousands and millions of Bank dollars will be out of a job except what actually happened was the cost of running a branch dropped by 10 times the banks created 10 times more branches and the number of bank tellers has not changed at all okay the three most robotics prolific countries where they use the most robotics automating the human manual worker are South Korea Sweden and Germany the lowest unemployment countries in the world are South Korea Sweden Germany so automation does not take away jobs end a story let's leave it with an exclamation okay all right Fleming says given how important IP is in exponential technology how do you keep Trade Secrets um uh while using staff on demand so let me let me hit this there is going to be a point in a not too distant future where IP is really immaterial I remember having astr tell and Steve jits and Steve uh was at dfj now he's in uh his own Venture fund probably one of the most successful Venture capitalists on the board of Tesla and SpaceX we're having a conversation there's a point in the near future where AI is so powerful that when you launch a product the likelihood is that we're going to have technology that can reinvent and improve on it in a half a cycle um if you're dependent upon intellectual property to protect you instead of going out there and marketing and Reinventing yourself constantly you're going to lose that race yeah um second thing is the world is changing so fast that IP becomes less and less relevant now the Third part of it is the execution okay whatever my IP is let's say I've got the greatest search engine uh crawling thing in the world if I have the passion to go execute against that nobody's going to beat me if somebody else grabs that they have to have as much passion as me and over out execute me so it always comes down to how much are you trying to how fast and how aggressively how much passion can you bring to the table on how well can you execute against the idea not the intellectual property around that you can't rest on your Laurels you need to have an amazing team an amazing MTP and constantly disrupting yourself all right Anna asks what are some pitfalls or misconceptions that companies should be aware of when embarking on their journey to become exos how can they overcome those so something we didn't touch on today because we didn't have time is between the attributes of an EXO there are a lot of interdependencies okay so for example you can't Implement autonomy uh and decentralize your decision making if you don't have an MTP guiding thinking and guiding experimentation etc etc uh ge um implemented the largest business training or corporate training exercise in history they trained 60,000 managers on Lean Startup thinking and it failed because they didn't have autonomy okay so if you wanted to implement uh lean you better Implement autonomy to give people free to run the experiments that are most exciting to them so we document these in the book we've got sections in the for each attribute on what are the requirements prerequisites to implement this attribute make sure you have these things in place if you have experimentation then you need dashboards so constantly tell you whether the experiments are working are you running enough or not Etc so those are in the context of running an EXO if you're a small company and you're trying to turn into an EXO follow these steps pick an MTP and just turn completely into an EXO if you're a large company do not Implement EXO inside your organization you'll have an imun system response the antibodies will attack you you'll get a bunch of er talk to anybody that's been in corporate Innovation and ask them to turn around and you'll see all these arrows in their back Etc big companies cannot innovate what you do is you take the crazy people in your big company put them at the edge of the company and build one into adjacent spaces the way so I'll give you a specific example Nestle built in espresso for years trying to run it as the line of business inside espresso inside net um netl and it failed because the value proposition go to market product think was completely different from the big uh food Processing Company CEO finally put the team on the edge brick wall between them and the rest of the company and boom every hotel room in the world has an espresso machine so the way big companies innovate is they create exos off the edge they run an EXO Sprint to break the immune system and then over time ideally the EXO becomes the new Gravity center for the company so that's how big companies do it astell tells it in a similar fashion he says listen you're going to have your employees break into two different groups there's the group that's responsible for delivering 10% annual growth right they're the economic engine of your company you don't want to break that engine it's fueling everything but then you want to take those moonshot thinkers those individuals who are driven by an MTP put them on the edge and they're responsible not for 10% but 1,000% 10x you want to say to those indiv idual on the edge listen I don't want you thinking about 10% you need to be only focusing on things that are 10x bigger and that group on the edge needs to report directly to the CEO um and that CEO needs to have coverage from their board because you're going to have a lot of experiments are going to fail right you have to realize you're going to have a you know a 10 90% mortality rate on these and if you're failing and Reporting failure after failure after failure uh your board's going to fire you as a CEO unless you've got the top coverage but it's that one out of 10 that yields you know an extraordinary success yeah this is a really critical point that's only possible today not even five or 10 years ago was this possible it used to be that if you're a big company and you want to do some disruptive innovation you had to make what was called a big bet and put a big chunk of resources and initiatives behind it the CFO hated it would try and defund it the minute they could etc etc okay now because the cost of attempting and experimenting is so low you can run a portfolio of Investments on the edge of the company don't even tell the CFO and ideally you don't um and only double down when you see success if you have a little startup on the edge that's growing 10x and you go to the board and say I want a little investment they're going to go yeah here uh so there's a there's a whole set of and remember we have a community of 25,000 people in the open EXO Community ready to help and advise all your companies Etc because we're passionate about transformation and solving this and Peter has the same with the abundance 360 Community all right let's go to the next one Max says I'm just starting my EXO which skills should I learn what do I Outsource uh and what do I Outsource to other companies so first of all Max as the if you're the CEO of this again getting your mindsets in order is fundamental uh it's understanding uh you know how you're thinking about this having an abundance and exponential mindset and moonshine mindset a curiosity mindset it is getting your MTP organized now to be clear you don't need to be an expert in all of the Technologies you don't to be an AI expert what you need to know is what are you good at what do you love doing and then finding partners that are good at other areas right if you're great at fundraising or great at marketing be the best at that and then bring in the complimentary skill sets that are going to support you as part of your founding team h two points I want to add one as Peter mentioned if you're the founder MTP and mindset is all you should focus on because that's going to drive culture Outsource everything else if you can second thing that's really important I want to comment on Elon Musk here maybe the most successful entrepreneur in the world today look at his methodology he takes an MTP solve Transportation right then he finds what exponential technologies will inform that MTP battery storage uh solar energy Etc and where will that technology be on a 10-year exponential curve and then aim for that point aim to because it takes like 10 years to build a company 11 in some cases Etc so you aim to invest in that he has no expertise in the space industry the car industry or the energy industry if I can add to that and he's created Market leaders and all of those because of his mindset and this methodology he calls it first principle thinking so when he started on Tesla and I was there at the early days of both companies um he was he made him himself convinced that the Battery Technology would be viable when he looked at the spot cost of the metals involved of the Cobalt of the nickel of the lithium and said okay here's the cost per ounce per gram and so I know I can get it down to this cost there was nothing that would stop it when he started SpaceX you know he went to Russia to buy Expendable boosters and found them ridiculously ancient 50 years and ridiculously EXP ensive and he came back and he got himself convinced that there's no reason you could not create a fully reusable first stage that could be fired over and over again with that first principle thinking he started literally with an aerospace textbook he had a physics background first of all he's brilliant beyond belief just let's begin there and don't underestimate that right having extraordinarily intelligence in yourself and in your founding team is super important but with the fundamentals and place then methodically started building step by step by step uh there's something I want to touch on here when Elon set out to build SpaceX and wanted to do the reusable Rockets I remember seeing a panel you can find this on YouTube a panel of of astronauts that were in their 70s that went on the Apollo program Buzz Aldren etc etc they got on a panel publicly and They begged the government to stop Elon they said he's going to destroy the space industry because he will fail they literally tears running down their face saying we spent our entire lives dedicated the space industry and and and he had to deal with this and and then he succeeded why because if you constantly every time they launched a rocket they were testing 65 different things soar those Rockets are wired with thousands and thousands of sensors and just like the recent relativity launch of Teran 1 which made it to space but not to orbit you get massive data you update your AI model your algorithms on the rocket you improve and that was never the case in the past Aerospace industry you had to have the experts guess right on the first time with their slide rules all right let's get one more question here Daniel uh what methods or or approaches have you implemented to foster a mindset of abundance and how has this influenced the trajectory of your organizations uh Daniel that Insight of abundance came to me first at Singularity University and it was the real ation that technology was able to take things that were there but not accessible and make them usable right so we're bathe in 8,000 times more energy from the Sun every day than we consume and Technology solar now perovskite is making it more and more usable the transformation of available not accessible to accessible is where it's going and I collect and you can go to DM andis.com and see all of the abundance charts I collect all of this constant evidence that is showing Us increasing abundance and I train my mind by what I read what I write about who I hang out with right and that's you know so if you consider coming to abundance 360 that's our mission uh 830c we are training your mindset year round around these fundamental mindsets that enable you to become an exponential entrepreneur so um I want to mention one quick thing as we are ending the end point right um please remember the book is available at 99 for the next code next few next few days if we could put the slides the slides up um the ray chatbot is available for anybody for free if you sign up you just can go use it and say I'm a shipping company how do I turn into an EXO and it'll give you the answer uh we're super proud of that we'll be loading up 700 case studies into this thing over the next time so uh and this is a time if you want to buy the book for your friends ET 9 made it as accessible as we can without having to deal with Publisher issues etc etc um there's Peters community at abundance 360 there's our community at open xo.com and all of us helping out learn. open xo.com has a rich training set for you um we're running out of time now we're going to stick around for a little while to answer some more questions can you stick around for absolutely because I think the questions are incredibly uh powerful and important uh and then we're going to show up a zoom link uh gray I don't if you can throw up the banner but after we finish uh there are hundreds of our community members that have gone and created a zoom room for additional questions so that if you have further questions you can chat with them Etc so there's the barcode on screen uh take a clip a click of that and go to that Zoom room after we've finished here um to uh have an answer more questions and continue the discussion just want to say if you have to leave thank you for joining us for 3 hours that's no small feed our whole purpose here mine is to inspire and guide entrepreneurs like you to create a hopeful compelling and abundant future for Humanity I'm driven by that MTP it's the reason I do what I do why I'm here with my dear brother Saleem uh and Sim's to help you know create and transform the planet and create exponential organizations and the reason I'm here is because the only constituency in demographic that can change the world as entrepreneurs yes 100% you're risk you're risk tolerant and by definition you're crazy right therefore you can actually change the world and we've got now a very clear methodology the value propositions support system tools training and the ecosystem for you go do that so the challenge we have for you is look deep inside yourself find the MTP that you want to go after and just go after it this is the best time in the history of the world to be an entrepreneur and the best time ever to be alive except perhaps for tomorrow you have a chance to uplift Humanity make a dent in the universe uh and we hope that you do yeah all right so let's answer a few more questions for the next 15 minutes or so sure all right if you can stick with us please do and then again there is the EXO uh Zoom room which you will will'll lead you to after the next 15 minutes all right Rodrigo is asking how does the EXO model address cyber security ethics sustainability challenges associated with exponential Technologies okay so um I'll answer this in a couple of ways one is when you look at cyber security right if you go back 10 15 years ago we were we were worried oh my God the internet is about to collapse with with fishing then we thought oh my God email is about to be destroyed via VIA spam Etc and we found uh algorithms to solve for those okay and people get freaked out going oh my God I can have cyber security and AI going after cyber security to crash my servers what am I going to do about that we forget that we also have the good side of it remember that amydala freaks out about negative things we have the good side so it becomes an arms race so cyber security deals with that now um I forgot the rest of the question um let's go back here go back oh yeah sustainability note that the by default I want to just talk about the economic thesis behind an EXO because it's really important when you're running a business you worry about demand and Supply specifically the cost of demand the cost of Supply hopefully you're on the right side of that equation okay the internet came along and for the first time in business history allowed you to drop the cost of demand at customer acquisition exponentially online marketing referral marketing every Silicon Valley Company's trying for a viral Loop in which case your acquisition costs go to zero and for the first time in the history of business you can acquire customers at no cost magical boom all these things platforms pop up uh Facebook Etc leveraging that side I I'll just mention one heang what exponential organizations have figured out is how do you drop the cost of Supply exponentially take Airbnb the cost of adding a room to their inventory is near zero if you're high it you have to build a hotel so now you have the ability to go into any Legacy industry with a very low marginal cost of supply and and then your market cap explodes because that's the denominator I'll mention two last things here on that question we as humans tend to see the negative first uh it's just the way our brains are programmed for survival and the way that I flip that in a Juno move is I say listen the world's biggest problems are the world's biggest business opportunities so if there truly is a huge issue there think of it as an incredible opportunity for starting an EXO to solve it the other thing is that uh like it or not we tend to see the problems way out in the future and we accelerate it to today and we see what's coming and then oh my God it's going to Doom us but will we forget that we have a period of exponential growth right we're going going to see more progress in the next decade than we have in the past Century and so during the decade ahead of us we're going to have breakthrough after breakthrough after breakthrough enabling us to deal with a lot of the challenges uh that we're concerned about all right Gil asks how does the scale formula applied to manufacturing uh equipment installation uh uh where lots of experience relationships and customization is needed so again look at the rocket launch business and notice which is a lot of expertise and experience needed right and note the 100x drop in cost and then we'll see another 100x drop in cost the same thing applies for agriculture and vertical farming where the yields are five times what they used to be even horizontal farming we now have drones scanning Fields do with infrared to scan for where their disease centers so that we can pocket out and treat those plants specifically so all of these exponential Technologies each of them is adding a 10x capability and benefit to the Legacy environment we're going to see uh Ai and and VR uh reinvent how we design in manufacturer I'm going to describe something I have in my mind it's going to go to a virtualized 3D Studio and the AI is going to build something I'm going to look at it spin it around and say yes that's it please print and the speed of going from mind to materialization is just exploding onto the scene right yeah 3D printing I we have a dear friend iy renthal uh head of Nexa 3d' been looking at you know a 10x increase in speed 100x increase in material strength full color mixed materials we're truly Reinventing how we manufacture stuff we are so locked in to how we've always done stuff whether it's farming whether it's manufacturing whether it's designing uh and all of this is changing rapidly all right um s you said a questions that was a refreshing point you made about our system education system being outdated I'm not sure it was refreshing was kind of saddening and tragic but yes a fa Point what key subjects should we add to update our education system uh I've got a Blog coming out about this uh in the next few days uh go to chat GPT and ask it a question uh ask the question uh you know in order to deal with accelerating future and oncoming of AGI what should we be teaching our kids fascinating answers right has nothing to do with what we normally do it's really about agility it's about great question uh asking it's about uh morals and ethics it's about a whole range of soft skills um it's how to make a compelling argument how to lead uh these are the things that we're not currently teaching in our schools yeah I mean you know you could we could spend a day just on education right but just to summarize all our education systems are push-based systems you get a bunch of kids into a classroom and you try and cram algebra into them meanwhile most of them are thinking about lunch right um but today if you think about how the world works you pick a topic that you AR you're interested in you pull pull down the information you need to solve that problem for anybody that's a college graduate and out in the workforce how much of your college education are you actually using in the workplace answer is almost zero and that gives you a hint of where things are going so we're going to go from push-based education systems to poll-based learning systems driven by an MTP I'm our kids are 12 years old about I'm desperately hoping the entire University system collapses in the next six years before they have to go there because thank I hope they don't have to go through what I went through at University and be structured more and more right you put it really well when you're doing a master's degree in biotech in a brain right you're getting more and more narrow yeah today as someone who's got a doctoral degree I was I was in abundance I talked about describing to my grandfather what I was working on and and I say look you see the dirt over there he says oh you're an expert in the dirt no no no in the dirt there's these little microorganisms called uh called bacteria oh you're an expert in those no no no no in the bacteria there's this thing called DNA that codes for life oh you're an expert in that no no in the in there there are these little things called plasmids you're an expert in that no there's this enhancer sequence and I'm an expert in that so I mean at the end of the day we've gone so narrow um because that's what was needed uh you know AI is going to enable us as our co-pilot to go much much broader but we as Sim says uh both high school and university is going to need to be reinvented if if you're doing a master's degree in Neuroscience today by the time you finish your master's degree you're you're at a date okay and so this is a structural issue our ability to teach something is being outpaced by the changes in that subject area and so we need a completely new model where we're going to pull down the learning as we need it for whatever job that's going on forget the 20 years of education and then you're out productive in the workforce for 60 or 50 years and then you retire we're going to have to be on online non-stop practicing learning the most valuable colleagues and employees you have are the ones that learn the fastest all right last question from Alexandre uh Peter uh you've shared a model of chat GPT like platform that you can personally use for creating an MTP and moonshot can you please share more on how you run it and feed it sure Alexandre uh when you go and use it and again there's a free version of it right there for you it's going to prompt you it's going to prompt you on your MTP it's going to start to ask you questions but as you answer the questions based upon what youve put in so far it's going to generate a variety of different options for you and then you can pick the options and so it's really a thinking partner it's a thought partner so when I design my MTP I'm clear about who do I want to be a hero to and then what are the action verbs and what is the end goal so again it's an iterative process um it's fun it's easy and uh again one of the things that is important for me inside of my abundance 360 Community is that every member has created a massive transformative Purpose By the way it doesn't have to be transforming the world your MTP can be narrow and specific but what's what wakes you up in the morning and gets you excited right and then once you have that MTP my a360 members have their moonshot they're working on as well and at open EXO we now have an entire Community 25,000 people in 140 countries ready to help you build your Exo and build your moonshot with advice experience etc etc we curated this book with the help of that entire community so uh come join us there the it's free to join um uh there's an unbelievable amount of resources available pick your MTP and go solve for that area solve for that leveraging these new tech let's put the QR code for the zoom room up uh once again if we could so the community is going to be reconvening at this Zoom room a bunch of our community members are ready to answer all your questions um they've heard me rabbit about a thing you'll hear a very refreshing uh note we learn an unbelievable amount from our community because everybody we've created basically like a hive mind and I'm sure you're seeing this at abundance because everybody's seeing different things when you can reconnect the overall Community becomes uh learns faster collectively as a group so it's incredibly powerful to be part of both of these communities uh please go do join um so a pleasure budy got it finally got out you know I don't know how many of our community members we lost while waiting for the the second edition to come out uh but 3 four years in people will were clamoring for it now it's finally out it looks in incredibly likely with the launch of this second edition that EXO will crack into the top 10 bestselling business books ever published it's like that crazy thank you to all of you that have been part of that and all the help and support including our wives and a special shout out to uh to Greg O'Brien who's been running this AV and CH Rose Washington who's been running our Q&A to Tyler and Kevin uh who've been driving the marketing here to both communities and all the watch parties I hope you have some alcohol or other substances to keep you going uh I'm off to catch a flight um Peter it's been an absolute honor to uh share this journey with you we almost got through got into it with the original book but now we're really in it and and as usual just so inspiring watching you you've been such an inspiration to me and so many millions of people with the abundance thinking plus the mindsets plus the moonshots so thank you for everything and what you do thank you for what you built and and spawning the original idea of an exponential organization and thank you to our Singularity university community as well for all the support inspiration uh check out su.org as well uh take care everybody be well take care
