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Library

Below is the visual library for all the books I have summarized
To access the searchable library, click here

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9900241KHCQnx1EL._SX331_BO1,204,203,200_ 51aUygppA+L._SX331_BO1,204,203,200_ 51cx5AfHpZL._SX337_BO1,204,203,200_ 51ETE8NqvcL._SX330_BO1,204,203,200_ 51kbKLCazgL._SX327_BO1,204,203,200_ 51XkLHJz++L._SY344_BO1,204,203,200_ 71ahJkud8uL 71X3Y9yRtlL 81wBzBcSclL 857333 littlebets  prophet-cover_1_op_397x548 Screen-Shot-2015-09-14-at-2.22.25-PMreagan-151fc0+DDh9L._SY344_BO1,204,203,200_ 51iuMfmHHHL._SY344_BO1,204,203,200_ 51tkKRzS5YL._SX329_BO1,204,203,200_ 51xrAg9mceL._SX331_BO1,204,203,200_ FINDING-ULTRA-COVER-FINAL1  TheBoysintheBoat9780812993257 How_We_Decide_cover  OmnivoresDilemma_full  brothers k Happiness-Hypothesis unbroken-crjpg-ce0987f837463333  mans_search_for_meaning  simplicity  9781571745712 81B9+kACYLL BotanyofDesire_full 300x300 cn_image.size.swerve-book rise of superman  year-without-pants-752x1128  getting to yes 51V38NLW5zL._SY344_BO1,204,203,200_ TheIntelligentInvestor 51XcaFJirNL._SY344_BO1,204,203,200_ Jesus  BP Diet  Zorba_book Flowers for Algernon  1776 Auto of Black Hawk Genghis Khan Making Onward God Delusion Moonwalking_with_einstein Stroke of Insight Einstein Isaacson Siddhartha Titan fooling super brain Lila Meditations Fahrenheit 451  On the Road   Cooked On the Shortness of Life What every body is saying Aleph Animal Farm Sports Gene Love WinsBorn to Run  Emotional Intelligence Cool Tools Sun also rises Inutition Pumps  Moby Dick  Free to Choose  Power of Positive Thinking Experiments with Truth Vagabonding Slaughterhouse Five Aristotle in Outline the social animal_3.indd Cat's Cradle Thinking Fast and Slow  The Alchemist  Walden  Art of War  The Charisma Myth  Flatland  Mr. Feynman Money master the game 51qwpkjNP7L._SY344_BO1,204,203,200_  7126 41ry6MoUc3L._SX331_BO1,204,203,200_ 51JNMx5G3iL._SY344_BO1,204,203,200_Berkshire 51K28NKVF3L._SY344_BO1,204,203,200_ 1984-by-opallynn-d4lnuoh 6596 17184 cover2 cvr9781451695182_9781451695182_hr Mastery_Cover movieposter PicofDorianGray-728143 Rye_catcher subliminal_seduction  TheJungleSinclair  The-Richest-Man-In-Babylon-George-Clason

 

Management of the Absurd by Richard Farson

Summary
  1. Human relations are often paradoxical and not logical and this book explains why many assumptions about people, relationships and “managing” we make are in fact false. “Paradoxes are seeming absurdities and people logically try to rationalize them but here we are going to try to suppress that in order to better understand real life situations.”
Key Takeaways
  1. How we think shapes what we see and paradox and absurdity are part of nearly every interaction
  2. It is important to dispel these logical yet false assumptions because when they inevitably fail, managers get frustrated and aren’t well prepared to handle these situations
  3. Managers do things right, leaders do the right things
  4. Absurdity and paradox will be with us as long as humans are around as they arise due to human nature and its flaws
  5. People must know you are a genuine person and not just a “manager.” Vulnerability is sometimes the best way to act
  6. It can be a relief to many to realize you cannot perfectly learn how to deal with others. There is no perfect way. Any technique loses its power once others realize it is a technique. The best people in any field or endeavor leave technique behind and are simply genuine and authentic
  7. Understanding how something works doesn’t mean you can make it work
  8. Praise may not be as effective of a motivator as people think. It may be a status play that managers need to be sensitive to. Better for a manager to be involved and care about the employees’ work. Praise from a third party is often the most effective
  9. The best resource to resolve a problem is sometimes the group who is experiencing or brings up the problem. Deeper fluency with their own problem and can of course see through their own eyes better than others can
  10. The people with the problems often have the best insights into how to fix the problem and if you involve them there will be much greater buy in and adherence
  11. It is amazing how resilient the individual is yet how fragile the organization made up of these individuals can be
  12. Participative approaches are often more effective in getting people involved and generating ideas but this isn’t often employed. Managers may not truly trust their people and the employees may not have the confidence at first to express their opinions
  13. The best way to improve work and output may not be through management but simply by improving relations
  14. Organizations that need the most help often can benefit the least. The mentally healthiest people can often change the most and gain from it. Often the people who need to change least are forced to in order to accommodate others – may not be fair but it sure is effective
  15. People and companies suffer most often because of fraying or lack of relations
  16. Often, the better things are the worse people feel. Revolutions begin not at the trough but only when things slightly improve. The theory of rising expectations. They are discontented because of higher level concerns. This is actually progress though it may not seem like it at first. The highest performing organizations have the highest order grumbles – self actualization. People will never be totally content. The best campuses and countries often have the most restless populace. The most effective reformers are often thrown out by the very people they have been helping – rising expectations take over
  17. Although creativity seems encouraged it really isn’t because truly creative ideas would require tremendous change. Breakthrough changes always breaks the rules. What people seem to really want is manageable creativity. Long term, respected institutions cannot be as creative as newer ones can and that is why true breakthroughs tend to come from individuals, smaller groups or others who are “outside”. Scale is the enemy of creativity
  18. Leadership is less the property of an individual and should be distributed among its members
  19. Often easier to make big changes rather than small ones as the benefits are so much more drastic. In a group that’s working well without titles or other forms of physical status it would be hard to tell apart the leader from the other members
  20. Often people learn better from others’ mistakes than successes as we can better empathize with them
  21. Failure could be one’s best teacher but it really isn’t as people don’t take the time or make the effort to truly analyze them. It is hard to look yourself in the mirror after a failure
  22. Everything works yet nothing works. Almost all management techniques work somewhat but lasting change is almost impossible to implement. Lasting changes only occur when sound practices are implemented on a continual and sustainable basis
  23. Planning is a poor way to asses the future but it can be helpful for assessing the present. The process and not the product is the important part to help with anticipative behavior
  24. The most impactful leaders do not dominate a group but serve it. Humility comes naturally to the best leaders
  25. The best leaders seem to have the confidence to trust their intuition- the accumulation of experience and learnings that they can draw and act upon. These visceral reactions are often ignored but should be paid attention to while looking for objective information
  26. Efforts to fix people usually don’t work and can be counterproductive. The best managers try to fix the situation or environment rather than the person. Circumstances are powerful influences on behavior
  27. The best managers create an ecosystem where their passion is the organizing and motivating force. This makes the tough pursuit worthwhile and draws others into the mission
  28. Love is fundamental to good leadership as leadership is all about caring
  29. Community is one of the most powerful yet fragile parts of an organization. It takes a lot of time and trust to build and can be ruined quite quickly. An insidious part of the erosion of communities is that it is often made in the name of progress and scale
  30. Amateur comes from the Greek word amator which means “love.” An amateur does what he does out of love. A manager needs to work from a place of love
What I got out of it
  1. Often opportunity lies in paradox, misunderstandings or things which seem counterintuitive. This book is filled with those situations and keeping them in mind when dealing with people will be helpful. The rule of reciprocity is always in play. Treat others as you want to be treated. Embody those things which you yourself are looking for. Genuinely having respect will be invisibly and silently communicated to others. Verbal communication is only a small fraction of all communication. The silent, meta message tends to be more powerful than the message itself

The Great A&P And the Struggle for Small Business in America by Marc Levinson

Summary
  1. An in depth analysis of The Great Atlantic & Pacific – one of the largest and most dominant retail chains of all time which changed how Americans shopped, ate and expected from their retail experience
Key Takeaways
  1. George and John Hartford were the men who made the Great Atlantic and Pacific Tea Company, later the Great A&P, into the behemoth it became but it was George Gilman who originally founded it. They became so powerful that they were charged with breaking the Sherman Antitrust Act as they had gained such scale and were able to lower the prices of their goods to the point that other, smaller and often independent owners couldn’t complete.
  2. George was very conservative about how to run the business whereas John was more aggressive and open to new ideas. John traveled often, met with the stores and their competitors in order to bring in and act on new ideas.
  3. A&P was the first to successfully and adamantly aim to lower prices as much as possible and to make the profits by volume rather than trying to get the most profit per item.
  4. They were the first to reach $1 billion in sales in the 1920s and in the 1930s they were the first to shift from grocery stores to supermarkets.
  5. They were often the country’s and sometimes the world’s largest importer of many goods and their sales were twice that of the second leading retailer
  6. The size, scale and influence of the A&P was novel and they helped revolutionize food safety, supply chain management techniques and more. They drove many smaller scale grocers and retailers out of business but this also freed up vast amounts of labor to help the economy grow in other areas
  7. George Gilman’s early retail stores were found to be very cheap but quality was low. As they grew, Gilman wanted to portray the image of a great, reliable and quality store to suppliers and customers in order to attract large merchants, espcecially tea, he spread rumors and fabricated shipping statements to appear they were larger than they really were
  8. Gilman, one never to miss a chance to market his company, sought to profit off the new coast to coast railroad. He thus began The Great Atlantic and Pacific Tea Company – it was more of a front however than a legitimate business venture as he was trying to fend off competitors and lure in customers and suppliers. This “front” was destined to become the world’s largest retailer
  9. They went after the growing tea market and startled their competitors by starting their own private label brand name tea – TheaNectar. Shortly after the government passed patent protection laws and their tea was protected, becoming a household brand.
  10. Gilman was a genius marketer. He created beautiful pictures people wanted and this transformed into coupons and later into trading stamps, becoming a marketing staple for the entire industry. This drove customers into the store and to spend more than they otherwise would
  11. After the Great Chicago Fire, Gilman and Hartford sent a lot of food and support to the victims and also bought key land and set up their first store outside New York. When they opened, they had unmeetable demand. The success was so great that they decided to expand aggressively and 4 years later had 16 stores in many cities. They became the first retailer with that kind of broad, national presence and became widely known. Gilman was the marketer and innovator and George Hartford was the managerial genius – yin/yang power combo
  12. The Great A&P became a temple for coffee and tea and were exceedingly lavish in order to appeal to new customer’s increasing focus on status
  13. The Great A&P was very successful but they have one big issue and that they were really reliant on coffee and tea and once prices on these commodities fell, their sales and profit did accordingly. George Hartford reacted in a sensible way and sought to broaden his product line. They started out with other commodities such as sugar but then moved to baking powder which was expensive at the time but made of cheap materials. They took the innovative step and created their first private label baking powder with the A&P brand. This soon became a national, powerhouse brand. The idea of a brand was new at the time and allowed  consumers to know they’re getting a consistent and quality product, although for a higher price and allowed retailers to segment the market and eventually reach economies of scale never before reached.
  14. Cardboard boxes, a mistake invention, and the tin can were inventions which allowed retail brands to proliferate. The A&P’s shift from tea company to grocer was underway but two things were constant: lavish use of marketing and premiums
  15. They tapped into the power of women through their coupons. At the time, women had little authority over the family budget except for food and through the collection and use of coupons, they were able to buy items which otherwise their husbands would have resisted
  16. After Gilman died, ownership was split between Gilman’s family and George Hartford. Hartford made his sons George and John officers. John was the most outgoing of the bunch, often traveling and visiting the stores and meeting suppliers, Edward was disinterested and George Jr was the conservative numbers man
  17. Good story working smarter not harder – In 1907 there was a run on the banks and the bank which held the store’s money was rumored to be going out of business. John waited in line overnight but then decided to go to the front of the line, asked the man at the front how much he had with the bank, gave him more money than he was waiting for and took his spot in line. He got all the store’s money out of the bank and the man at the front was happy too
  18. Edward, George senior’s third son, never formally worked for the company but was secretary for some time.  He was however very accomplished in his own right, inventing the shock absorber and jacks which became ubiquitous on nearly every car in the world
  19. John exposed himself to new ideas in the industry and helped his more conservative father and brother move forward. The Hartfords were not innovators but what they were great at taking great ideas and understanding how to make them profitable – grocery stores, economy stores, supermarkets, lower price to raise volume…
  20. The competitive advantage for wholesalers was credit, not price
  21. They took advantage of the situation after WWII to buy coffee roasters, canneries and other manufacturing facilities and started to become vertically integrated. They received such scale that they were one of the few to have the size to negotiate cheaper rates with the railroads and their suppliers (which later got them in trouble with Congress for potentially violating the Sherman Anti-Trust Act)
  22. As they grew, they were forced to decentralize and they pushed sales, purchasing and as many other responsibilities down the food chain as possible because those people had firsthand knowledge of the situation. This lead to better decisions and more buy-in from these people since they were getting the chance to grow, take responsibility and make their own decisions
  23. Because of their scale, they were able to get slightly lower prices for nearly all their goods and they eventually gained greater efficiency, influence and customer data than any other firm before them.
  24. The genius of A&P is that they sought to reduce the price and margin on every good in order to increase volume. They did this by reducing costs in never before thought of ways
  25. By the late 1920s, A&P had more stores than the rest of the top 5 largest chains combined
  26. In the mid 1930’s, The Robinson-Patman Act sought to change legislation and break apart large scale retail chains because it hurt so many independent shop owners
  27. The Hartford’s brilliant insight was that too high profits were a warning sign and bad for the long run prospects of the company. They thought that this was a bad indicator because this meant they were charging more than they had to and this would lead to decreased volume as shoppers would go to their stores less, leading to the same fixed cost being spread over fewer customers, forcing them to raise prices again and on in a vicious cycle
  28. One could argue that few organizations have done more to raise the quality of life for the average consumer than A&P. Their obsession with lowering prices and innovating everything from supply chain to pre packaged carrots opened up new products and frontiers for mid America
  29. Once John Hartford died they had a succession plan in place but Mr. Ballinger died as well soon after. So, Ralph Burger who was seen throughout the company more of as an assistant to John then as a leader, got thrown into the leadership position
  30. As shopping centers became more common throughout the US, A&P became too conservative without John and were unwilling to sign long-term leases or own real estate and soon got locked out of the most premier locations. Their conservatism brought disaster as their competitors were adding high margin desirable product lines, had big stores in good locations with fast growing populations while A&P was relying on the legacy of their past. Today’s ship cannot sail with yesterday’s wind
  31. The A&P went public and their secrecy and lack of detailed information made investors and Wall Street nervous. Their decline was incredible as they were unable to innovate and keep up with new trends and customer demands
  32. They were eventually bought by a German company called Tenglemann, not knowing how dire their situation eventually was. After two Chapter 11 bankruptcies, The Great A&P, who was once the largest and most dominant retail chain in the US and maybe the world, officially shut their doors in 2015
What I got out of it
  1. They laid the framework, game plan and precedent for many of today’s largest firms such as Walmart and Amazon. Their two leaders, George and John Hartford, played off each other’s skills of conservatism and innovation/risk taking to create a behemoth. However, once they were no longer in charge, conservatism and inability to adapt took hold and A&P’s dominance was quickly eroded by faster moving, more innovative companies such as Walmart. Through their focus on lower prices and higher volumes, they were able to get more and more nutritious food to the average American, changed the country’s shopping habits and helped innovate the nationwide store, brand, supply chain and everything else that goes with that

September 2017

The Rabbit Hole by Blas Moros
Jump In. 

My monthly newsletter covers the books I have read over the course of the month, the challenges I undertook as well as some other interesting articles, blog posts, interviews, tools, hacks, etc.

Books

Full list of books read in 20172016, 2015, 2014

Any book, which is at all important, should be immediately re-read

Teacher’s Reference Guides

  • Paul Graham’s essays are just phenomenal. He is unique in his combination of technical, artistic, financial and startup skills and this allows him to write clear, concise, often surprising, and always powerful essays. I try to focus as much of my time as possible on learning things which are universal and timeless and I think these essays are a prime example. Regardless of your field, I believe there’s a ton to be learned from his multi-disciplinary take on startups, business, relationships, self-improvement, learning, competition, and more. Here is the link to my summary

Monthly Challenges

  • 3 day fast
  • Jerzy Gregorek’s Happy Body program – wasn’t too committed to it this month but liked the routine when I did it

Other

  • Eliminating the Human – while certain technologies are incredibly convenient, efficient and powerful, an often unintended consequence is that it reduces or fully eliminates meaningful human interaction. This can cause a decline in tolerance and understanding of differences as well as envy and antagonism. “”We” do not exist as isolated individuals. We, as individuals are inhabitants of networks; we are relationships. That is how we prosper and thrive.”
  • The awe-inspiring story of Michael Wright, a 9/11 survivor, by Cal Fussman is well worth a read
  • Adversity is the Best Teacher – great article by Kiril Sokoloff on the upside of suffering, adversity and challenges
  • Ben Thompson on books, blogs and aggregators – while books can be great, they are rigid and difficult to change whereas blogs are organic, alive and easily changed

Amor Fati

Blas

“Leadership is the art of getting someone else to do something you want done because he wants to do it.” – Dwight D. Eisenhower

June – August 2017

The Rabbit Hole by Blas Moros 
     
Jump In. 
 

My monthly newsletter covers the books I have read over the course of the month, the challenges I undertook as well as some other interesting articles, blog posts, interviews, tools, hacks, etc. 

After nearly 4 months of travel, I have settled down and started a new chapter of my life in Los Angeles. I couldn’t be more excited about this new opportunity and if you have any recommendations – from people to meet to restaurants to experiences – please share!

My travels took me first to Nepal for a 10-day Vipassana meditation retreat, nearly 3 weeks in India (DelhiVaranasiAgraJaipur and Jaisalmer), a week in Iceland with my family, 3 weeks seeing extended family and friends in Sweden, a week in Israel with my sister and a 2-week road trip with my brother from South Bend to LA, seeing 9 national parks.

I learned and experienced so much in these 4 months and am so grateful to have had the opportunity to make this happen. I learned and gained clarity and conviction about myself, my goals, my weaknesses, my strengths, my intentions, my priorities and more in Nepal; the generosity of the people in India and her amazing culture and heritage blew me away; the raw beauty of Iceland is something to behold; the historical and religious context in Israel is impressive; and, lastly, the natural beauty of the US is awe-inspiring. 

While I’m now back to reality, these experiences, acquaintances, memories and learnings will stay with me forever.

This newsletter is a bit different in that it is a compilation of these last several months. I tried to do some reading for each new place I visited to get some sense for the history and context but overall I read some classic works of fiction, wanted to dive into the power of intention after the meditation retreat, and continued learning about scale, platforms and network effects.  

Books

 

Full list of books read in 20172016, 2015, 2014

Any book, which is at all important, should be immediately re-read

 

Teacher’s Reference Guides

  • The current rabbit hole is still Paul Graham and his essays. So, so good. There’s a ton to be taken away from his multi-disciplinary take on startups, business, dealing with people, learning, competition, etc…

 

Monthly Challenges

  • Pareto Spring Cleaning
  • 10-Day Silent Vipassana Meditation Retreat
  • Learn how to whistle loudly with fingers – not quite there yet….
  • Train with the STAmina app – a shorthand version of Wim Hof’s breathing exercises
  • Review my quarterly journal entries to see where time was well spent, where it was wasted, what I learned, what surprised me and how these are all helping or hindering me in reaching my goals

 

Other

  

Amor Fati

Blas

 

“Fools ignore complexity. Geniuses remove it.” – Alan Perlis

May 2017

The Rabbit Hole by Blas Moros 
     
Jump In. 
 

My monthly newsletter covers the books I have read over the course of the month, the challenges I undertook as well as some other interesting articles, blog posts, interviews, tools, hacks, etc. 

 

Books

Full list of books read in 20172016, 2015, 2014

Any book, which is at all important, should be immediately re-read

Teacher’s Reference Guides

  • The current rabbit hole is Paul Graham and his essays. So, so good. There’s a ton to be taken away from his multi-disciplinary take on startups, business, dealing with people, learning, competition, etc…

Monthly Challenges

  • None

Other

  • Jim Collins on Peter Drucker – “When young people ask, “What can I do to make a difference?” one of the best answers lies right here in this book. Get your hands on an organization aligned with your passion, if not in business, then in the social sectors. If you can’t find one, start one. And then lead it—through the practice of management—to deliver extraordinary results and to make such a distinctive impact that you multiply your own impact by a thousand-fold.”
  • Bertrand Russell on the importance of studying history
  • What Makes Roy Run? – fantastic article on the phenom to bust to phenom career Roy Halladay had. The satisfaction always lies in knowing you did something to the best of your ability.
  • JBS Haldane – On Being The Right Size
  • Seth Godin – Choosing Your FuelWhat Henry Ford Understood About Wages

It was a slower and more distracted month than usual as I was in the midst of planning, packing, moving and transitioning between jobs.

I will be vagabonding and off the grid for the most part over the next 2-3 months as I visit Nepal, India, Iceland, Sweden and Israel. 

Updates over the next few months will be few and far between but I will get re-focused in August or September.

Thanks for your support and, as always, Amor Fati

Blas

“Plans are nothing, planning is everything.” – Dwight D. Eisenhower

 
   
 
   
 
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April 2017

The Rabbit Hole by Blas Moros 
     
Jump In. 
 

My monthly newsletter covers the books I have read over the course of the month, the challenges I undertook as well as some other interesting articles, blog posts, interviews, tools, hacks, etc. 

 

Books

Full list of books read in 20172016, 2015, 2014

Any book, which is at all important, should be immediately re-read

Teacher’s Reference Guides

  • The current rabbit hole is Paul Graham and his essays. So, so good. There’s a ton to be taken away from his multi-disciplinary take on startups, business, dealing with people, learning, etc…

Monthly Challenges

  • Dancing – the final performance was this month and it turned out pretty much as good as I could have hoped for. Happy and honored to have helped such a great organization as The South Bend Center for the Homeless and to have challenged myself by stepping out of my comfort zone
  • Going through quarter’s entries in my BestSelf journal – the goal is to see broader patterns over longer periods of time that I might otherwise miss in the moment, to relive good experiences, to learn from difficulties or failures and to see where the most productive and useful time is spent (amazing how much time is wasted on non-useful articles, meetings, books, etc. but I think that’s the price of admission to occasionally stumble upon the few gems which do have lasting impact).
  • Learning How to Learn – Coursera put together a great course on the different techniques to become a better learner, covering topics such as memory, chunking, how to deal with procrastination, how to study, improving productivity, test taking skills, etc. My Summary Notes

Other

Amor Fati

Blas

“Satisfaction lies in the effort, not in the attainment. Full effort is full victory.” – Mohandas K. Gandhi

 
   
 
 

Sam Walton: Made in America by Sam Walton and John Huey

Summary
  1. Sam Walton recounts his background and Walmart’s path to retail dominance
Key Takeaways
  1. Sam’s Rules for Building a Business
    1. Commit to your business. Believe in it more than anybody else. I think I overcame every single one of my personal shortcomings by the sheer passion I brought to my work. I don’t know if you’re born with this kind of passion or if you learn it. But I do know you need it. If you love your work, you’ll be out there every day trying to do it the best you possibly can and pretty soon everybody around will catch the passion from you – like a fever
    2. Share your profits with all your associates, and treat them as partners. In turn, they will treat you as a partner and together you will perform beyond your wildest expectations. Behave as a servant leader in a partnership. Encourage your associates to hold a stake in the company. Offer discounted stock, and grant them stock for their retirement. It’s the single best thing we ever did
    3. Motivate your partners. Money and ownership alone aren’t enough. Constantly, day by day, think of new and more interesting ways to motivate and challenge your partners. Set high goals, encourage competition, and then keep score. Make bets with outrageous payoffs. If things get stale, cross-pollinate; have managers switch jobs with one another to stay challenged. Keep everybody guessing as to what your next trick is going to be. Don’t become too predictable
    4. Communicate everything you possibly can to your partners. The more they know, the more they’ll understand. The more they understand, the more they’ll care. Once they care, there’s no stopping them. If you don’t trust our associates to know what’s going on, they’ll know you don’t really consider them partners. Information is power, and the gain you get from empowering your associates more than offsets the risk of informing your competitors
    5. Appreciate everything your associates do for the business  A paycheck and a stock option will buy one kind of loyalty. But all of us like to be told how much somebody appreciates what we do for them. We like to hear it often and especially when we have done something we’re really proud of. Nothing else can quite substitute for a few well-chosen, well-timed, sincere words of praise. They’re absolutely free – and worth a fortune
    6. Celebrate your success. Find some humor in your failures. Don’t take yourself too seriously. Loosen up, and everybody around you will loosen up. Have fun. Show enthusiasm – always. When all else fails, put on a costume and sing a silly song. Then make everybody else sing with you. Don’t do a hula on Wall Street. It’s been done. Think up your own stunt. All of this is more important, and more fun, than you think, and it really fools the competition. “Why should we take those cornballs at Walmart seriously?”
    7. Listen to everyone in your company. And figure out ways to get them talking. The folks on the front lines – the ones who actually talk to the customer – are the only ones who really know what’s going on out there. You’d better find out what they know. This really is what total quality is all about. To push responsibility down in your organization, and to force good ideas to bubble up within it, you must listen to what your associates are trying to tell you.
    8. Exceed your customers’ expectations. If you do, they’ll come back over and over. Give them what they want – and a little more. Let them know you appreciate them. Make good on all your mistakes, and don’t make excuses – apologize. Stand behind everything you do. The two most important words I ever wrote were on the first Walmart sign: “satisfaction guaranteed.” They’re still up there, and they have made all the difference
    9. Control your expenses better than your competition. This is where you can always find the competitive advantage. For 25 years running – long before Walmart was known as the nation’s largest retailer – we ranked number one in our industry for the lowest ratio of expenses to sales. You can make a lot of different mistakes and still recover if you run an efficient operation. Or you can be brilliant and still go out of business if you’re too inefficient
    10. Swim upstream. Go the other way. Ignore the conventional wisdom. If everybody else is doing it one way, there’s a good chance you can find your niche by going exactly the opposite direction. But be prepared for a lot of folks to wave you down and tell you you’re headed the wrong way. I guess in all my years, what I heard more often than anything was: a town of less than 50,000 population cannot support a discount store for very long
      1. I can tell you this, though: after a lifetime of swimming upstream, I am convinced that one of the real secrets to Walmart’s phenomenal success has been that very tendency. Many of our best opportunities were created out of necessity. The things that we were forced to learn and do, because we started out underfinanced and undercapitalized in these remote, small communities, contributed mightily to the way we’ve grown as a company. Had we been capitalized, or had we been the offshoot of a large corporation the way I wanted to be, we might not ever have tried the Harrisons or the Rogers or the Springdales and all those other little towns we went into in the early days. It turned out that the first big lesson we learned was that there was much, much more business out there in small-town America than anybody, including me, had ever dreamed of
  2. Walmart’s Strategy
    1. That method was to saturate a market area by spreading out, then filling in. In the early growth years of discounting, a lot of national companies with distribution systems already in place – Kmart for example – were growing by sticking stores all over the country. Obviously, we couldn’t support anything like that. But while the big guys were leapfrogging from large city to large city, they became so spread out and so involved in real estate and zoning laws and city politics that they left huge pockets of business out there for us. Our growth strategy was born out of necessity, but at least we recognized it as a strategy pretty early on. We figured we had to build our stores so that our distribution centers, or warehouses, could take care of them, but also so those stores could be controlled. We wanted them within reach of our district managers, and of ourselves here in Bentonville  so we could get out there and look after them. Each store had to be within a day’s drive of a distribution center. So we could go as far as we could from a warehouse and put in a store. Then we would fill in the map of that territory, state by state, county seat by county seat, until we had saturated that market area
    2. We never planned on actually going into the cities. What we did instead was build our stores in a ring around a city – pretty far out – and wait for the growth to come to us. That strategy worked practically everywhere
    3. There’s no question whatsoever that we could not have done what we did back then if I hadn’t had my airplanes. I bought that first plane for business, to travel between the stores and keep in touch with what was going on. But once we started really rolling out stores, the airplane turned into a great tool for scouting real estate. We were probably 10 years ahead of most other retailers in scouting locations from the air, and we got a lot of great ones that way. From up in the air we could check out traffic flows, see which way cities and towns were growing, and evaluate the location of the competition – if there was any. Then we would develop our real estate strategy for that market. I loved doing all this myself
    4. A key transition point was moving from variety store to discount store
    5. 2 cornerstones of Walmart’s philosophy – we sell for less and satisfaction guaranteed  The idea was simple: when customers thought of Walmart, they should think of low prices and satisfaction guaranteed. They could be pretty sure they wouldn’t find it cheaper anywhere else, and if they didn’t like it, they could bring it back. No matter what you pay for it, if we get a great deal, pass it on to the customer. And of course that’s what we did
      1. Building this consistent customer trust is vital, think it also applies to Costco and Amazon in certain ways
    6. As much as we love to talk about all the elements that have gone into Walmart’s success – merchandising, distribution, technology, market saturation, real estate strategy – the truth is that none of that is the real secret to our unbelievable prosperity. What has carried this company so far so fast is the relationship that we, the managers, have been able to enjoy with our associates.
    7. We didn’t pay our associates much in the beginning. It wasn’t that I intentionally was heartless. I wanted everybody to do well for themselves. It’s just that in my very early days in the business, I was so doggoned competitive, and so determined to do well, that I was blinded to the most basic truth, really the principle that later became the foundation of Walmart’s success. You see, no matter how you slice it in the retail business  payroll is one of the most important parts of overhead, and overhead is one of the most crucial things you have to fight to maintain your profit margin. That was true then and it’s still true today. Back then, though  I was so obsessed with turning in a profit of 6% or higher that I ignored some of the basic needs of our people and I feel bad about it. The larger truth that I failed to see turned out to be another of those paradoxes – like the discounters’ principle of the less you charge the more you’ll earn. And here it is: the more you share profits with your associates – whether it’s in salaries or incentives or bonuses or stock discounts – the more profit will accrue to the company. Why? Because the way management treats the associates is exactly how the associates will then treat the customers. And if the associates treat the customers well, the customers will return again and again, and that is where the real profit in this business lies, not in trying to drag strangers into your stores for one-time purchases based on splashy sales or expensive advertising. Satisfied, loyal, repeat customers are at the heart of Walmart’s spectacular profit margins, and those customers are loyal to us because our associates treat them better than salespeople in other stores do. So, in the whole Walmart scheme of things, the most important contact ever made is between the associate in the store and the customer
    8. The idea for sharing profits and benefits had come up even before we went public, not from me, but from Helen. The decision we reached around that time, to commit ourselves to giving the associates more equitable treatment in the company, was without a doubt the single smartest move we ever made at Walmart.
    9. One of the most successful bonuses has been our shrink incentive plan, which demonstrates the partnership principle as well as any I know beyond just straight profit sharing. As you may know, shrinkage, or unaccounted-for inventory loss – theft, in other words – is one of the biggest enemies of profitability in the retail business. So in 1980, we decided the best way to control the problem was to share with the associates any profitability gained by reducing it. If a store holds shrinkage below the company’s goal, every associate in that store gets a bonus that could be as much as $200. This is sort of competitive information, but I can tell you that our shrinkage percentage is about half the industry average. Not only that, it helps our associates feel better about each other, and themselves. Most people don’t enjoy stealing, even the ones who will do it if given the opportunity. So under a plan like this, where you’re directly rewarded for honesty there’s a real incentive to keep from ignoring any customers who might want to walk off with something, or worse, to allow any of your fellow associates to fall into that trap. Everybody working in that store becomes a partner in trying to stop shrinkage, and when they succeed, they – along with the company in which they already hold stock – share in the reward.
      1. Use human nature to work for you – in this case he was able to align incentives to get people all-in and to become self-policing
    10. Keeping so many people motivated to do the best job possible involves a lot of the different programs and approaches we’ve developed at Walmart over the years, but none of them would work at all without one simple thing that puts it all together: appreciation. All of us like praise. So what we try to practice in our company is to look for things to praise. Look for things that are going right. We want to let our folks know when they are doing something outstanding, and let them know they are important to us. You can’t praise something that’s not done well. You can’t be insincere. You have to follow up on things that aren’t done well. There is no substitute for being honest with someone and letting them know they didn’t do a good job. All of us profit from being corrected – if we’re corrected in a positive way. But there’s no better way to keep someone doing things the right way than by letting him or her know how much you appreciate their performance. If you do that one simple thing, human nature will take it from there
      1. What the pupil must learn, if he learns anything, is that the world will do most of the work for you, provided you cooperate with it by identifying how it really works and identifying with those realities. – Joseph Tussman
    11. “When I started working at Walmart in West Texas, we could anticipate a store visit by the chairman with the same sense you get when you’re going to meet a great athlete, or a movie star, or a head of state. But once he comes in the store, that feeling of awe is overcome by a sort of kinship. He is a master of erasing that ‘larger-than-life’ feeling that people have for him. How many heads of state always start the conversation by wanting to know what you think? What’s on your mind?
      1. It is great to be great, but it is even better to be human. – Will Rodgers
      2. Walt Disney also had this capacity to put people at ease – if he wanted to…
    12. And, as I’ve said, we’ve certainly borrowed every good idea we’ve come across. Helen and I picked up several ideas on a trip we took to Korea and Japan in 1975. A lot of the things they do over there are very easy to apply to doing business over here. Culturally, things seem so different – like sitting on the floor eating eels and snails – but people are people, and what motivates one group generally will motivate another
    13. A strong corporate culture with its own unique personality, on top of the profit-sharing partnership we’ve created, gives us a pretty sharp competitive edge. But a culture like ours can create some problems of its own too. The main one that comes to mind is a resistance to change. When folks buy into a way of doing things, and really believe it’s the best way, they develop a tendency to think that’s exactly the way things should always be done. So I’ve made it my own personal mission to ensure that constant change is a vital part of the Walmart culture itself. I’ve forced change – sometimes for changes sake a lone – at every turn in our company’s development. In fact, I think one of the greatest strengths of Walmart’s ingrained culture is its ability to drop everything and turn on a dime…Part of this constant change helps keep people and competitors a little off balance
    14. Small merchants need to avoid coming at us head-on and do their own thing better than we do ours. It doesn’t make sense to try to underprice Walmart on something like toothpaste. That’s not what the customer is looking to a small store for anyway. Most independents are best off, I think, doing what I prided myself on doing for so many years as a storekeeper: getting out on the floor and meeting every one of the customers. Let them know how much you appreciate them, and ring that cash register yourself. That little personal touch is so important for an independent merchant because no matter how hard Walmart tries to duplicate it – and we try awfully hard – we can’t really do it
      1. Like Paul Graham advises, attack incumbents orthogonally. Start small, start cheap, start obscure, start with actions that might not scale, in areas which are looked down upon. You’ll build such a loyal customer base that before your competitors know it, you’re on their heels
    15. I loved it. So many times we overcomplicate this business. You can take computer reports, velocity reports, any kind of reports you want to and go lay out your counters by computer. But if you simply think like a customer, you will do a better job of merchandise presentation and selection than any other way. It’s not always easy. To think like a customer, you have to think about details. Whoever said ‘retail is detail’ is absolutely 100% right. On the other hand it’s simple. If the customers are the bosses, all you have to do is please them.
    16. Distribution and transportation have been so successful at Walmart because senior management views this part of the company as a competitive advantage, not as some afterthought or necessary evil. And they support it with capital investment. A lot of companies don’t want to spend any money on distribution unless they have to. Ours spends because we continually demonstrate that it lowers our costs. This is a very important strategic point in understanding Walmart – Joe Hardin
    17. I would go so far as to say, in fact, that the efficiencies and economies of scale we realize from our distribution system give us one of our greatest competitive advantages
    18. For a long time Sam would show up regularly in the drivers’ break room at 4AM with a bunch of donuts and just sit there for a couple of hours talking to them. He grilled them. What are you seeing at the stores? Have you been to that store lately? How do the people act there? Is it getting better? It makes sense. The drivers see more stores every week than anybody else in this company. And I think what Sam likes about them is that they’re not like a lot of managers. They don’t care who you are. They’ll tell you what they really think.
    19. Being big poses some real dangers. It has ruined many a fine company – including some giant retailers – who started out strong and got bloated or out of touch or were slow to react to the needs of their customers. Here’s the point: the bigger Walmart gets, the more essential it is that we think small. Because that’s exactly how we have become a huge corporation- by not acting like one. Above all, we are small-town merchants, and I can’t tell you how important it is for us to remember – when we puff up our chests and brag about all those huge sales and profits – that they were all made one day at a time, one store at a time, mostly by the hard work, good attitude and teamwork of all those hourly associates and their store managers, as well as by all those folks in the distribution centers.
    20. So we know what we have to do: keep lowering our price, keep improving our service, and keep making things better for the folks who shop in our stores. That is not something we can simply do in some general way. It isn’t something we can command from the executive offices because we want it to happen. We have to do it store by store, department by department, customer by customer, associate by associate
    21. Push responsibility down to those touching the medium – That makes it management’s job to listen to those merchandisers out in the stores. We have these buyers here in Bentonville – 218 of them – and we have to remind them all the time that their real job is to support the merchants in the stores. Otherwise, you have a headquarters-driven system that’s out of touch with the customers of each particular store, and you end up with a bunch of unsold workboots  overalls and hunting rifles at the Panama City Beach store, where folks are begging for water guns and fishing rods and pails and shovels; and at the Panama City store in town you’ve got a bunch of unsold beach gear stacked up gathering dust. So when we sit down at our Saturday morning meetings to talk about our business, we like to spend time focusing on a single store, and how that store is doing against a single competitor in that particular market. We talk about what that store is doing right, and we look at what it’s doing wrong
    22. We believe that we have to talk about and examine this company in minute detail. I don’t know any other large retail company – Kmart, Sears, Penney’s – that discusses their sales at the end of the week in any smaller breakdown than by region. We talk about individual stores. Which means that if we’re talking about the store in Dothan  Alabama or Harrisburg, Illinois, everybody here is expected to know something about that store – how to measure its performance, whether a 20% increase is good or bad, what the payroll is running, who the competitors are, and how we’re doing. We keep the company’s orientation small by zeroing in on the smallest operating unit we have. No other company does that. – David Glass
    23. If you had to boil down the Walmart system to one single idea it would probably be communication, because it is one of the real keys to our success. We do it in so many ways, from the Saturday morning meeting to the very simple phone call, to our satellite system. The necessity for good communication in a big company like this is so vital it can’t be overstated.
  3. Sam does not consider himself reflective or one to dwell on the past
  4. His passion to compete is what sets him apart
  5. His father was totally honest and the best negotiator he had ever seen – him and the counterparty always parted as friends
  6. Had several hard jobs as a kid during the Great Depression. Like Disney and many others, was a paper boy which taught him the value of a dollar and this became part of the Walmart culture
  7. Supremely competitive with a great bias for action but his best talent was as a motivator.
  8. “Exercising your ego in public is definitely not the way to build an effective organization. One person seeking glory doesn’t accomplish much; at Walmart, everything we’ve done has been the result of people pulling together to meet one common goal – teamwork – something I also picked up at an early age”
  9. Thinking you have the right to win often turns into a self-fulfilling prophecy
  10. Sam was one of the masters of “going positive and going first”
    1. I learned early on that one of the secrets to campus leadership was the simplest thing of all: speak to people coming down the sidewalk before they speak to you. I did that in college. I did it when I carried my papers. I would always look ahead and speak to the person coming toward me. If I knew them, I would call them by name, but even if I didn’t I would still speak to them. Before long, I probably knew more students than anybody in the university, and they recognized me and considered me their friend
    2. “I guess Mr. Walton just had a personality that drew people in. He would yell at you from a block away, you know. He would just yell at everybody he saw, and that’s the reason so many liked him and did business in the store. It was like he brought in business by his being so friendly
  11. Somehow over the years, folks have gotten the impression that Walmart was something I dreamed up out of the blue as a middle-aged man, and it was just this great idea that turned into an overnight success. It’s true that I was forty four when we opened our first Walmart in 1962, but the store was totally an outgrowth of everything we’d been doing since Newport – another case of me being unable to leave well enough alone, another experiment. And like most other overnight successes, it was about twenty years in the making. Of course I needed somebody to run my new store, and I didn’t have much money, so I did something I would do for the rest of my run in the retail business without any shame or embarrassment whatsoever: nose around other people’s stores searching for good talent. One way he lured the best people in, especially early on, was to give away a percentage of the profits
  12. Early goal was to be the best, most profitable variety store in Arkansas within 5 years. That happened
  13. Early lesson: you can learn from anybody, especially competitors
  14. Was always iterating and experimenting – this may be Sam’s most important contribution. “Every crazy thing we tried hadn’t turned out as well as the ice cream machine, of course, but we hadn’t made any mistakes that we couldn’t correct quickly, none so big that they threatened the business
  15. What Walmart realized more clearly than anyone else and what they built around and exploited is that you can lower the mark-up and margin so that the volume makes up for less profit per item
  16. Always sought out competition – “Bentonville was the smallest of the towns we considered, and it already had three variety stores, when one would have been enough. Still, I love competition, and it just struck me as the right place to provide I could do it all over again
  17. Was a keen observer
    1. “As soon as  Sam moved the store from Newport to Bentonville, he had a nice big sale, and we put barrels full of stuff all around the floor. Those elderly ladies would come in and bend way down over into those barrels. I’ll never forget this. Sam takes a look, frowns, and says: ‘One thing we gotta do, Charlie. We gotta be real strong in lingerie.’ Times had been hard, and some of those underthings were pretty ragged.” – Charlie Baum
    2. “I remember him saying over and over again: go in and check our competition. Check everyone who is our competition. And don’t look for the bad. Look for the good. If you get one good idea, that’s one more than you went into the store with, and we must try to incorporate it into our company. We’re really not concerned with what they’re doing wrong, we’re concerned with what they’re doing right, and everyone is doing something right.” – Charlie Cate
  18. I guess we had very little capacity for embarrassment back in those days. We paid absolutely no attention whatsoever to the way things were supposed to be done, you know, the way the rules of retail said it had to be done
  19. “Two things about Sam Walton distinguish him from almost everyone else I know. First, he gets up every day bound and determined to improve something. Second, he is less afraid of being wrong than anyone I’ve ever known. And once he sees he’s wrong, he just shakes it off and heads in another direction”
  20. After a tornado tore down a key store – “We just rebuilt it and got back at it.” No feeling sorry for oneself. Just facing what reality hands you and making the most of it
  21. Distribution was an absolute key to Walmart’s success
  22. I guess I’ve stolen – I actually prefer the word “borrowed” – as many ideas from Sol Price as from anybody else in the business. For example, it’s true that Bob Bogle came up with the name Walmart in the airplane that day, but the reason I went for it right away wasn’t that the sign was cheaper. I really liked Sol’s Fed-Mart name so I latched right on to Walmart.
  23. Many of these larger stores were bright stars for a moment, and then they faded. I started thinking about what really brought them down, and why we kept going. It all boils down to not taking care of their customers, not minding their stores, not having folks in their stores with good attitudes, and that was because they never really even tried to take care of their own people. If you want the people in the stores to take care of the customers, you have to make sure you’re taking care of the people in the stores. That’s the most important single ingredient of Walmart’s success
  24. Academy Men vs. NCOs (non-commissioned officers) – the early fellows didn’t want me hiring any college men. They had the idea that college graduates wouldn’t get down and scrub floors and wash windows. The classic training in those days was to put a two-wheeler – you know, a cart that you carry merchandise on – into a guy’s hands within the first thirty minutes he came to work and get him pushing freight out of the back room. They all came out of these variety stores with the same background and the same kind of philosophy and education. And we looked for the action-oriented, do-it-now, go type of folks
  25. I can name you a lot of retailers who were originally merchandise driven, but somehow lost it over the years. In retail, you are either operations driven – where your main thrust is toward reducing expenses and improving efficiency – or you are merchandise driven. The ones that are truly merchandise driven can always work on improving operations. But the ones that are operations driven tend to level off and begin to deteriorate. So Sam’s item promotion mania is a great game and we all have a lot of fun with it, but it is also at the heart of what creates our extraordinary high sales per square foot, which enable us to dominate our competition
  26. Sam was never one to scoff at change if it was correct. He began as a dime store man so at first he wanted to make a certain percentage of profit on everything. But he came around to the idea that a real hot item would really bring customers in the store so we finally started running things like toothpaste for 16 cents a tube. Then we’d have to worry about getting enough of it in stock
  27. Thrived on change and no decision was ever sacred
  28. One thing I never did – which I’m really proud of – was to push any of my kids too hard. I knew I was a fairly overactive fellow and I didn’t expect them to try to be just like me. Also, I let them know they were welcome to come into our business, but that they would have to work as hard as I did – they would have to commit to being merchants.
  29. One reason he fell in love with his wife Helen is that she was always her own woman, forming her own opinions and making her own decisions
  30. I have always had the soul of an operator, somebody who wants to make things work well, then better, then the best they possibly can
  31. Some folks no doubt figured we were a little fly-by-night – you know, in the discount business today but out selling cars or swampland tomorrow. I think that misunderstanding worked to our advantage for a long time, and enabled Walmart to fly under everybody’s radar until we were too far along to catch
  32. Anybody who has ever known anything about me knows I was never in anything for the short haul
  33. I always had great curiosity and would openly ask competitors how they operated and thought about their business. I always questioned everything
  34. I think it must be human nature that when somebody homegrown gets on to something, the folks around them sometimes are the last to recognize it
  35. I guess what’s annoying to executives – to anybody who tries to spend their time managing a company as big as this – is these money managers who’re always churning their investors’ accounts. You know, the stock will go from $40 to $42 and they’ll rush in there and say, “Hey, let’s sell this thing because it’s just too high. It’s an overvalued stock.” Well, to my mind, that doesn’t make much sense. As long as we’re managing our company well, as long as we take care of our people and our customers, keep our eye on those fundamentals, we are going to be successful. Of course, it takes an observing, discerning person to judge those fundamentals for himself. If I were a stockholder of Walmart, or considering becoming one, I’d go into ten Walmart stores and ask the folks working there, “How do you feel? How’s the company treating you?” Their answers would tell me much of what I need to know
  36. The point is, all those analysts may have had perfectly logical theories about why a 20% increase would be a disaster for us. But they failed to see that in a big economic downturn, when everybody is suffering, Walmart’s fundamental strengths would keep us going strong. And we would look great compared to everybody else
  37. What’s really worried me over the years is not our stock price, but that we might someday fail to take care of our customers, or that our managers might fail to motivate and take care of our associates. I was also worried that we might lose the team concept, or fail to keep the family concept viable and realistic and meaningful to our folks as we grow. Those challenges are more real than somebody’s theory that we’re headed down the wrong path
  38. If you asked me am I an organized person, I would have to say flat out no, not at all. Being organized would really slow me down. In fact, it would probably render me helpless  I try to keep track of what I’m supposed to do, and where I’m supposed to be, but it’s true I don’t keep much of a schedule. Except for reading my numbers on Saturday morning and going to our regular meetings, I don’t have much of a routine for anything else. I always carry my little tape recorder on trips, to record ideas that come up in my conversations with the associates. I usually have my yellow legal pad with me, with a list of ten or fifteen things we need to be working on as a company. My list drives the executives around here crazy, but it’s probably one of my more important contributions
  39. “When Sam feels a certain way, he is relentless. He will just wear you out. He will bring up an idea, we’ll all discuss it and then decide maybe that it’s not something we should be doing right now – or ever. Fine. Case closed. But as long as he is convinced that it is the right thing, it just keeps coming up – week after week – until finally everybody capitulates and says, well, it’s easier to do it than to keep fighting this fight. I guess it could be called management by wearing down.” – David Glass
  40. One way I’ve managed to keep up with everything on my plate is by coming in to the office really early almost every day. 4:30am wouldn’t be all that unusual a time for me to get started down at the office. The early morning time is tremendously valuable: it’s uninterrupted time when I think and plan and sort things out
  41. “I think one of Sam’s greatest strengths is that he is totally unpredictable. He is always his own person, totally independent in his thinking. As a result, he is not a rubber-stamp manager. He never rubber-stamps anything for anyone”
  42. As famous as Sam is for being a great motivator – and he deserves even more credit than he’s gotten for that – he is equally good at checking on the people he has motivated. You might call his style: management by looking over your shoulder
  43. I’m always asked if there ever came a point, once we got rolling, when I knew what lay ahead. I don’t think that I did. All I knew was that we were rolling and that we were successful. We enjoyed it, and it looked like something we could continue. We had found a concept, certainly, that the customers liked. Even back then, I always said at the first sign of it getting out of control, the first time our numbers don’t come through as they should, we will pull in and put our arms around what we’ve built. Up to this point, of course, we haven’t had to do it
  44. We keep our prices as low as possible by keeping our costs as low as possible
  45. Incumbents of a new model almost always drive out or are acquired by the old guard. What happened was that they (KMart, etc.) didn’t really commit to discounting
  46. I have played to my strengths and relied on others to make up for my weaknesses
  47. Sam and top executives always had and encouraged a ‘bias for action’
  48. Most of us were too busy in the stores to even think about where it was all leading
  49. Have to give people responsibility, trust them and then check on and help them
  50. Sharing information and responsibility is key to any partnership.
    1. Scarcity of any kind leads to “hoarding” where people will not feel secure in their environment and will not be all-in
  51. Submerge your own ambitions and help whoever you can in the company
  52. Everybody likes praise and we look for every chance to heap it on them
  53. The secret to successful retailing is to give your customers what they want
  54. Customers (eventually) vote with their feet
  55. Decision process – On something like the Kuhn’s decision, I try to play a “what-if” game with the numbers – but it’s generally my gut that makes the final decision. If it feels right, I tend to go for it, and if it doesn’t, I back off
  56. Once I decide I’m wrong, I’m ready to move onto something else
  57. I’ve always been a delegator – trying to hire the best people for our stores
  58. Sam’s ‘Beat Yesterday” Ledger book – Sam kept a ledger book to monitor and compare their performance to earlier versions of themselves during the early years of Walmart
    1. Is there a way to transfer this ‘Beat Yesterday’ ledger book to compare current self to younger self? Journal, decision book, mistakes made, what you’ve learned, how you would’ve handled a situation differently?…
  59. Enlightened self-interest
    1. We’ve been able to help our associates to a greater degree than most companies because of what you’d have to call enlightened self-interest; we were selfish enough to see in the beginning the value to the company of letting them share the profits
    2. You may have trouble believing it, but every time we’ve tested the old saying, it has paid off for us in spades: the more you give, the more you get.
  60. Win/Lose – the Japanese are right on this point: you can’t create a team spirit when the situation is so one-sided, when management gets so much and workers get so little of the pie
  61. Great ideas come from everywhere if you just listen and look for them. You never know who’s going to have a great idea
  62. One of the most powerful forces in human nature is the resistance to change. To succeed in this world, you have to change all the time
  63. A lot of folks ask if a Walmart-type story still occur in this day and age? My answer is of course it could happen again. Somewhere out there right now there’s someone – probably hundreds of thousands of someones – with good enough ideas to go all the way. It will be done again, over and over, providing that someone wants it badly enough to do what it takes to get there. It’s all a matter of attitude and the capacity to constantly study and question the management of the business
What I got out of it
  1. One of my favorite business books of all time. Absolute focus on the customer, willingness to change, profit sharing with associates, gestures of appreciation, enlightened self-interest, willing to be different, going positive and going first. Will reread immediately

On Paul Graham

I spent a couple months deliberately reading Paul Graham’s essays and have attempted to make a distilled “teacher’s reference guide” which will (hopefully) offer a manageable, actionable and digestible introduction to his powerful and wide-ranging essays.

On Paul Graham

*Always aim to read first source material. This is only my summary and occasional commentary. “Any book, which is at all important, should be reread immediately” and Paul’s essays are a prime example of this. I will continue to add to this as he publishes new essays

The Big Store: Inside the Crisis and Revolution at Sears by Donald Katz

Summary
  1. Katz describes the rise and fall of Sears and the men who helped revolutionize it when it was on the brink of disaster
Key Takeaways
  1. Ed Telling had to work through college to pay for tuition but he did it and ended up marrying the love of his life, Nancy
  2. Ed worked his way up through the Sears organization and quickly became Dead set against the decentralization process where HQ made decisions from afar without knowing the true situation. They knew the map but not the terrain
  3. There is no correlation between time spent on something and it’s productiveness. My most productive meetings are spent roaming the halls
  4. You can’t structure around a problem
  5. Ed got rid of the head of the Midwest and sought to bring someone from outside the company, outside the system, who had fresh eyes and could serve as an agent for change
  6. Moran became de facto head of merchandising and could draw on his deep knowledge of eastern culture to effectively deal with Telling. Telling rarely gave a direct order but hinted and suggested at what he wanted
  7. In the mid 1970s, Sears lost its way due to the sin of arrogance. They were not effectively serving customers and were wholly focused on hitting their quarterly numbers
  8. For some time, the interest rates charged to Sears were 11%, making every sale a loss and forcing them to borrow up to $400m per day
  9. Telling was a very forceful, vocal and harsh boss. He often shifted people around through seeming promotions but in fact was just moving them aside. By the time he realized his harsh and “management by mystery” tactics weren’t working, it was too late. He had alienated too many people and was all alone
  10. Changed certain metrics to get the changes they wanted as it allowed people to “kill sacred cows” and act in previously unacceptable ways due to tradition. By focusing on hours rather than number of salesman, They were able to get rid of underperforming but politically savvy salesmen
  11. Much dispute between the “Sears is one big store” mentality and the “each one is its local community’s store.” Centralization and consistency vs pleasing local tastes
  12. The Sears leadership put a huge focus on efficiency and technology. Their scale meant that every penny or minute saved would lead to millions of dollars and thousands of hours when extrapolated company-wide
  13. Funny recounting of how every level of management put the blame on “them” but one manager eventually found out there is no “they.” They are us. There was no ownership
  14. Telling began thinking of how Sears could begin operating more like a bank as they were already one of the largest financial institutions in the US due to loans and insurance. Focus groups indicated that hundreds of thousands of people may open brokerage accounts if it was associated with a trustworthy brand like Sears. Sears soon acquired Coldwell Banker. The vision was for Sears to become the “chassis for the American consumer’s material life” – becoming central to every purchase and transaction they were making, from hardware to mortgage to securities to credit cards
  15. Don’t “study things to death.” Be action oriented. They decided to spend millions experimenting with new stores and display concepts. They sought to make the most modern one shopping store in the world. No more haggling with dozens of different stores.
  16. Edward Brennan eventually became CEO and where Telling was quick and offered no explanations for how he acted, Brennan was slow, deliberate and methodical.
  17. Purcell believed that every great empire builder tried to tear down what they’ve built before they died or were forced out
  18. The main source of demoralization within Sears was the pace. People cannot endure for long the tenor of revolutionary tasks. People eventually lose the ardor they feel for a cause once the charismatic leader steps away
  19. The company Bill Bass inherited from Brennan was just exhausted. “We’ve just been working them too hard. The people will be able to talk freely with me and know they have the freedom to talk. It’s not really about how hard you work people which is making them exhausted, but the lack of recognition.” Bass had morale whereas Brennan did not, he had a destiny
  20. “Don’t worry,” Brennan said, “no one person can ruin Sears. We’ve all tried, and we’ve all failed.”
What I got out of it
  1. Good summary of Sears’ history, rise, fall and revolution. Older book so doesn’t have the most up to date info but good background
  2. Pair with this article comparing Sears and Amazon

Managing Oneself by Peter Drucker

Summary
  1. Today you must be your own CEO and take responsibility for your own growth
Key Takeaways
  1. Success tends to come to those who know themselves – strengths, weaknesses, how you work with others, your values and where you can make the greatest contribution
  2. You must be working from your strengths in order to make your greatest contribution
  3. People are often wrong in what they think their strengths and weaknesses are. Must discover strengths through feedback analysis. Write down what you think will happen in a given situation and revisit 9-12 months later and compare the two. It will clearly show you your strengths and weaknesses and then put yourself in situations where you can focus on and improve your strengths. Recognize where the gaps in your knowledge are and where your intellectual arrogance is causing disabling ignorance and overcome it.
  4. Being bright is not a substitute for knowledge
  5. Ideas do not move mountains. Plans and actions do
  6. Manners are the lubricating oil of organizations
    1. Civility costs nothing and buys everything – Mary Montagu
  7. Important to know whether you and others are readers or listeners
  8. Vital to know how you learn. There is no one right way to learn but must know if you’re a writer, by taking copious notes, by doing, by hearing yourself talk, do I work well with people or am I a loner, are you a leader or do you learn best as a subordinate, do you perform well under stress, with little or much stress, do you like structure from a big organization. Whatever it is, don’t try to change yourself but work on improving your strengths
  9. It is often not very helpful and too often hurtful to try to plan too far ahead
  10. The secret of managing up is knowing how those above you work, learn, what their strengths and weaknesses are, etc.
  11. The secret to effectiveness is understanding the people you work with and depend on, both above and below you, and adapting yourself to their individual styles
    1. False duality of whether you should manage up or manage down. Must do both!
What I got out of it
  1. Some good advice on how to get to know how one thinks, learns, operates and why that is important