[MUSIC] >> Right now, I think there's a lot of
hero worship around entrepreneurs and there are a lot of stories in
the press that it make it seem easy. That make it just seem like you could
wear flip-flops and a hoodie and walk around in Palo Alto and
poof, you're an entrepreneur. And in fact, those that have built
these high scale businesses, there is a ton of blood, sweat,
tears and years of time involved there. I decided to go out and
interview people, the people behind businesses to determine how they were
able to create and scale companies. The data sets, the largest right now in
the United States on founders that goes 0 to 100 million in revenue,
with five years of history, not more than ten years to go to scale. And it's a data set that looks across
industries and across geographies in US. What I came back with is an extremely
accessible, learnable, teachable code of six skills that basically mean that
anyone can create and scale a new idea. And I think that's really important to
realize it's a fundamental human ability to create something. [MUSIC] One really important tool, that's available to every single
person is to ask questions. If you want to spot something,
you have to be curious. And so there is some research that shows
that a five year old will ask about 100 questions a day. But as people age, and as we go through
a traditional education system and believe we're experts. At some point in time, in our work,
in our careers, we ask less, and less, and less in terms of questions
about the world around us. So if you want to spot a gap,
one thing you just have to be curious, you have to scratch the itch of curiosity. Under Armour founder
Kevin Plank is a great example. So he solves his own problem,
he is known in the University of Maryland, where he played football,
as Maryland's sweatiest player, okay? So he was not a good athlete and he weighed his cotton T shirt that he was
wearing under his uniform, it weighed three pounds at the end of a practice
because it had so much water weight. And that was not a good thing for Kevin. So the gap he sees in the marketplace
is no one is making under armor, making better undershirts for
football players. And he goes to a local fabric
store in College Park, Maryland. He buys this stretchy bolt of fabric. He takes it to a local tailor. $450 and seven prototypes later he has his
original Under Armour synthetic shirt. And then the original product,
many people don't know, didn't work. It was worn under red uniforms and
made all of the football players pink because they had a scavenger kind of
fabric that was making the color of the dyes go on the white undershirts so
he tried again and again. Kevin is really funny about saying you
have to solve your own problem and look in places, in his case, the football
players wouldn't normally be looking to armor up the big, tough athletes. So you just have to look for
gaps all around you, be alert, ask questions,
and solve problems. And pretty soon you find out that a lot
of other people have similar problem, in many cases. [MUSIC] There's some research around if
you are committed to a goal and you focus on what's in front of you,
what's left to go, you're two to three times more
likely to complete that goal. And so in the entrepreneurial economy,
that's very important. If you, instead, think of the ground you've covered to
date thinking, you will slow down. So this is some important brain research,
cognitive focus research, that if you think what's ahead of me your
brain will throw focus, motivation, and concentration towards achieving that. And this is about driving for
daylight always forward. Airbnb is a great example, so those
are three founders, Kevin, Brian and Joe. And they continue to believe
very much in the idea that people would share their homes,
the air bed and breakfast. The air bed that they had actually
on the floor of their own apartment, that they hosted other designers. They are Rhode Islands School of Designers
originally and one tech founder. They did this experiments for
themselves to make their own rent. They had a note under their door that
said your rent's up 25% in San Fransisco. San Francisco's very expensive city and
they couldn't afford it. And then there was a conference at
the same time in San Francisco and other designers coming for
that conference. They hosted three people. They believed very much this
would happen and no one else did. This is a very typical entrepreneurial
story of having everyone else pass, because the idea is out on the fringe. It's out on the margin, but
if you are driving for daylight, you believe in the horizon
that you want to conquer. And in this case, the Airbnb founders
launched, and relaunched, and launched. At one point they went to South by
Southwest and launched, as Twitter had. Believing that they would
have a Twitter moment. Only three people used the service, and they were two of the three,
as the founders. So they kept driving for daylight, and built what is now valued almost at
a 30 billion in valuation startup. So it's one of the world's
great startup stories. [MUSIC] OODA stands for observe orient decide act. This is a framework that came
from The US Air Force originally. And very few people realize that while
The United States has had supreme airpower in the world,
we have not had the best equipment. So the Russian Mig could fly higher and
faster than an F-15 or a 16-E, these are our fighter air craft. The reason why US pilots could win
in every dog fight in a really tough competition is that they would observe,
orient, decide, and act faster. Move through the traditions faster. This is called getting inside of
an opponent's loop, learning loop, so you learn faster. You, in fact,
change the dynamics of a fight. If you have observed, oriented, made a
decision and taken an action, a competitor is responding to something that a split
second before has been changed. So in the business world, this is every
bit as dynamic and important a force. Because if you can outmaneuver
a competitor, even by a split second, and make a decision and stay ahead,
you can win in a very competitive, globally linked,
technology accelerated economy. A great example here is PayPal. And many people know this example because
they had six different business models in 18 months, that is moving very rapidly
through decisions and decisions cycle. Reid Hoffman who was there in the early
team, basically they were getting a law suit by visa saying you
are acting as a credit card company. And Reed went to negotiate
that on behalf of PayPal. And the larger credit card company
would not drop the lawsuit, but instead, reconvinced them to
study the problem for a year. Okay, never study a problem, by the way,
because while that large credit card company was studying the problem
the PayPal team moved through, again, multiple decisions. They merged two companies, they ended
up going public, selling to Ebay. The much more interesting thing is
that they go on, this founding team, to start LinkedIn, YouTube, Yelp, Slide, Tesla Motors, Digg, Yammer,
which recently sold to Microsoft. The first investment behind Facebook, etc. So they go and seed the entire next wave,
basically, of the Internet. And when you spend time with
the original team and ask what is it, how did you do that? What they will say is, the first
thing is just not going to be it. You have to observe what works and
what doesn't. It's going to be counterintuitive. [MUSIC] Before you start a project, you
actually want to build in some failure. Think of that as testing and
think of that as learning and think of that as pushing the innovation
edge on whatever you're doing. If you have a perfect record, you probably aren't building
something the world hasn't seen. You already have a road map,
you already know how to do it. The speed with which the world
is changing, means that you can't have a perfect record, but
you can be smart about failing. So the idea here is to fail wisely, and
all failure is not the same, by the way. If you fail wisely,
one thing to do is set a ratio and say one in three things I try
won't work and that's what I want. Jessica Herrin is a great example. She's the cofounder of weddingchannel.com,
originally, and now Stella and Dot which is a fabulous,
fast growing online retail company supporting women has a whole workforce
of direct sales with women stylists. And Jess will say one in three
things that she tries won't work. And that's what she wants. There's her ratio and what she wants
the stylist to tell her is very, very quickly, love it or lose it. Love this piece of jewelery, love this
handbag in the inventory line, move it at volume, lose it this doesn't work, for
whatever reason it doesn't even matter. Just lose it as quickly as possible and
that's called failing wisely. [MUSIC] The ability to network minds is the
ability to harness the brainpower of other people. And to pull bright minds towards
you to help build solutions. And this is really based on
the idea of cognitive diversity. So the world right now, we're talking
a lot about diversity that you can see on the outside, gender, race,
social economic differences. My research is showing that really what
matters is what's inside your mind. Two people who look very different,
if they're trained exactly by the same institutions in the same
manner can think the same. So the idea here is to tap into
different points of view and encourage the cognitive
diversity in your work, in your workplace, to unlock solutions. In order to take an MRI,
you have to be inside the machine, it's very claustrophobic,
it's very loud and cold. You have to be there by yourself,
no one can be with you. You have to be completely still. And so for
children this is extremely difficult. 80% of kids have to be
sedated to take an MRI scan. And that ups the medical cost and
it certainly ups the risk. So for
the designer of this beautiful technology, he felt very much like a failure,
the most vulnerable people, children, were not able to
handle the scan very well. So his response to this is very beautiful
in that he goes and networks minds. And he gets together a lot
of the GE design team. And lab techs and doctors and nurses and then many children and daycare providers
and a designers of children art museum exhibits that are very large
things that kids would interact with. And this availability to a network minds
produces the adventure series now for the GE MRI machine and
there are seven adventures the kids go on. So if you see this
machine it's all painted, it has decals, there's music playing. There's a story when the children go to
the hospital, they meet a camp counselor, not a nurse,
that person is all dressed up. They're told a story, in one case that
it's a pirate story, it will be loud, they will have to be quiet,
it will be cold. All of these things make it an adventure
now for kids,and that largely comes from listening to children in the networking
minds, in this case, of the customer. And we often discount kids in designing
things or in the business world. We don't actually take into
account that point of view. So and it's an example of how GE has
done an amazing job at networking minds. And now the sedation rate
in the adventure series for kids seven different
adventures is nearly zero. So it's the exact same technology,
a completely different outcome. [MUSIC] Gifting small goods is about the exchange
of small favors, small kindnesses, something of value that you can do for
someone else for a colleague. And it's a five minute favor. So this is the idea that you don't have
to throw yourself off of a train for someone else. You do, however, need to figure out
little ways that you can be helpful. So a small good would be forwarding
a resume, writing a few lines of code, critiquing a proposal, giving feedback,
opening an opportunity for someone. These are five minute favors,
they're not big, heavy lift things to do. And the interesting part about
the transparent world, and the speed of communication now is
that people will know about this. This used to be the right
thing to help out a colleague. Now it makes you a lot more productive. There is a real generosity and kindred
spirit among people who've built things, I believe,
because they know how hard it is. [MUSIC]
