Tag Archives: Worth Re-reading

John H. Patterson: Pioneer in Industrial Welfare by John H. Patterson, Samuel Crowther

Like my write-up on Henry Ford and some of my other “teacher’s reference guides“, I got so much out of Pioneer in Industrial Welfare that I wanted to create a more formal write-up. As always, I have attempted to put together something which is (hopefully) a manageable, actionable and digestible introduction to Patterson’s thinking and business philosophy.

On John H. Patterson

 

 

*The vast majority of the content is from the books and not my own words. I’ve simply distilled, compiled, and added a few notes.

Human Universals by Donald Brown

The book and concepts were rich enough that I did a bit more of an in-depth write up…

On Human Universals

Link to further reading and universals

Good Profit: How Creating Value for Others Built One of the World’s Most Successful Companies by Charles G. Koch

Summary
  1. Charles Koch describes his management philosophy, Market Based Management, how it has evolved over time, and how it has been put to use at Koch Industries. MBM emphasizes Principled Entrepreneurship over corporate welfare, virtue over talent, challenge over hierarchy, comparative advantage over job title, and rewards for long-term value creation over managing to budgets.
Key Takeaways
  1. Market Based Management
    1. Charles’ goal when he was young was to discover the principles that best enable people to flourish as they live and work together. He grouped his findings into what is now known as MBM. MBM is a reality based tools that helps employees problem solve without explicitly being told what to do and this requires a simple structure that is deeply understood by all. It’s goal is to create spontaneous order by providing a simplified set of guiding principles and mental models to guide their behaviors and decisions.
    2. The system must be set up so that everyone knows what the right thing to do is and wants to do it, without overly detailed explanations or rules. Enlightened-self interest gets people to do the right thing for others as it also helps themselves
    3. MBM prompts us to focus on understanding consumers’ unmet needs and finding ways to satisfy them. We strive to do this faster and better than existing and potential competitors. This requires that we continuously improve our existing capabilities, such as sales, marketing, operations, distribution, finance, technology, and R&D
    4. MBM guiding principles – integrity, compliance, value creation, customer focus, knowledge, change, respect, fulfillment.
    5. Companies must realize they are not competing just on price and output of existing products. They have to relentlessly strive to come up with new and better products and produce them more efficiently than the alternatives. They also need to constantly improve the way they’re organized, so they can innovate and eliminate waste better than their competitors. This is what MBM enables Koch to do.
    6. No one can decide which products and services a customer values better than the customer. Dedicating ourselves to satisfying what she values is showing respect for her. This is what generates good profit. Bad profit comes from disrespecting customers by making them subsidize our business with their tax dollars and higher prices, siphoning away the good profit other companies could have earned
    7. Over time, we have made changes, not only to our vision, but to our entire approach to recruitment and management, our internships, university relationships, junior military outreach, trade school relationships, compensation system, opportunity origination networks, methods for achieving environmental and safety excellence, and MBM training and application programs.
    8. MBM strives to create a spontaneous order of self-actualizing people by hiring, retaining, and motivating those who internalize and exemplify all ten Guiding Principles – those with integrity and humility who want to create real value. Toward this end, it’s important for leaders to understand the potential and the subjective values of their employees. This is impossible without establishing open and honest communication in order to know employees well enough on a personal level to do so. For some employees, non-financial incentives – such as being praised for a job well done – can be as important as financial incentives. But care must be taken to ensure that such praise is truly earned
    9. MBM is broken down into five core areas including vision, virtues and talents, knowledge process, decision rights, and incentives. These five areas lead to emergent effects as the whole is greater than sum of its parts and become mutually reinforcing. This is a never ending process of learning and improvement and just like the Red Queen Effect, stasis equals death. Even successful companies struggle to keep up because, given human nature, we all tend to become complacent, self-protective, and less innovative as we succeed. It can be far more difficult to overcome success than adversity. I think often about a lesson my father impressed on me at an early age: “Often adversity is a blessing in disguise and is certainly the greatest character builder”
      1. Vision
        1. Determining where and how the organization can create the greatest long-term value. Koch’s is different than most as its focused on value creation and people, not product, industry, profit, or anything else. Koch must create real, sustainable value for its customers, for society, and for itself. It can only do so by inspiring and attracting customers, suppliers, and partners.
        2. Having a clear vision is critical to attracting the best talent. Understanding what a business is trying to achieve and how it creates value not only enables employees to focus and prioritize, it helps them develop and find fulfillment. Having a shared vision guides the development of roles, responsibilities, and expectations. That’s why getting the vision right, helping employees (especially leaders) internalize it, and updating it as often as necessary is essential. Because the future is unknown and unknowable, a company’s vision needs to be open-ended and to embrace creative destruction on a fundamental level. In our experience, a company tends to be better served when it is capability-focused rather than industry-focused. The breadth of a company’s vision should vary with the breadth of its capabilities. At the same time, a business must have a vision specific enough to guide its strategies, decision making, allocation of resources, and the roles, responsibilities, and expectations of all employees. Each vision also needs to be aspirational in order to expand the thinking of leaders and employees through the organization.
        3. Koch underscores that in order to achieve long-term success a business cannot rely on short-term profits but must accept the necessity of what economist Schumpeter calls “creative destruction.” This means that a firm must innovate at least as quickly as its most effective competitor. Building on these insights, Koch explains that at the heart of MBM is the understanding that the role of business is to help people improve their lives by providing products and services they value more highly than their alternatives, and to do so while consuming fewer resources.
        4. Koch’s vision is its north star and acts as a strategic guide which is constant and ever changing and drives the innovation culture and values of the organization
        5. Koch’s vision:
          1. Remain family owned, well-diversified, stable and financially conservative
          2. Grow organically faster than inflation, and achieve additional growth through acquisitions.
          3. Be an employer of choice through extensive team member development and engagement activities
          4. Have our portfolio businesses recognized as “best in class” within their respective industries
          5. Be model corporate citizens in the communities we call home
      2. ​Virtue and Talents
        1. Helping ensure that people with the right values, skills and capabilities are hired, retained and developed
        2. The company has a list of ten “Guiding Principles,” which include integrity, compliance, value creation, Principled Entrepreneurship, customer focus, knowledge, change, humility, respect, and fulfillment. Interviews are based around these traits and open-ended questions are used to discern a candidate’s probability of success in demonstrating the desired traits. Once interviews are completed, a challenge session among the recruiter, interviewers, and hiring manager is held to ensure the best knowledge is shared when making a hiring determination. Employee referrals have resulted in some of our best hires and we have also developed strategic relationships with external sources, including search firms familiar with MBM and our Guiding Principles. We invest heavily in college recruiting efforts and a well-developed internship program
        3. No matter how difficult the role is to fill, it is critical that we not lower our standards. A bad hiring decision is much more costly in many, many ways than is the delay in finding the right candidate
        4. There are many different kinds of intelligence and they should all be taken into account: interpersonal, intrapersonal, linguistic, logical-mathematical, spatial, naturalist, bodily-kinesthetic, and musical
      3. ​Knowledge Processes
        1. ​Creating, acquiring, sharing and applying relevant knowledge, and measuring and tracking profitability
        2. Knowing why something is profitable is often as valuable as knowing what is profitable.
        3. Benchmarking involves identifying, understanding, and adopting superior practices from anywhere in the world – internally, competitors, great businesses in any field.
      4. ​​​Decision Rights
        1. ​Ensuring the right people are in the right roles with the right authority to make decisions and holding them accountable. This should demonstrate an employee’s comparative advantages.
        2. The bestowal of decision rights upon an individual, moreover, should not be predicated upon that individual’s position in the corporate hierarchy.
        3. Many of the things that go wrong or opportunities that go unrealized in business are a result of the tragedy of the commons – shared areas with unclear (or nonexistent) demarcation of responsibilities. At Koch, we use decision rights to replicate the benefits and responsibilities of property rights in society. Just as we think of employees as entrepreneurs at Koch, we think of decision rights as property rights in the organization. Unless people have clearly defined areas of responsibility, it’s difficult – if not impossible – to elicit beneficial proactive behavior, or to hold people accountable when things go wrong. When no one has clear ownership of a resource, no one can be help responsible for its efficient use. In MBM, decision rights are synonymous with authority. If you have the decision rights to decide something, not only do you have the authority to decide it; you are responsible and accountable for it. ​
        4. Decision rights should reflect an employee’s demonstrated comparative advantages. An employee’s comparative advantages are evident in those activities for which she can create the greatest value compared to the opportunity cost of her time. When these are optimized among a group, the value it creates is maximized. Employees who focus on their comparative advantages and consistently make good decisions will have expanding decision rights, regardless of their role or position in the organization. Understanding and applying this concept – that the person with the comparative advantage to make that decision well (not necessarily the highest-ranking person) should be the decision maker – leads to greater value creation.
        5. Competitively advantaged innovation requires working on the best opportunities, establishing a clear owner, having the right people in the right roles, effectively experimenting, rapidly and efficiently scaling up, and finding the balance between short and longer-term disruptive innovations. In other words, the very nature of innovation requires a dynamic approach to decision rights, with frequent reviews and adjustments. ​
      5. Incentives
        1. The first goal of incentives is to harmonize the interests of the individual with those of the company. This reinforces our individual employee’s desire to do the right thing and help the company prosper. Second, compensation should be consistent with the notion that no two employees are alike; thus, their compensation can vary considerably depending on the value of their contributions. As a result of difference in vision, desire, values, and ability, people vary in the advantage they take of the nearly limitless opportunities to create value. This is why two employees performing similar roles may well be compensated differently. Third, no limit should be put on an employee’s compensation, so employees will not put a limit on the value they create. Finally, incentives should be structured in such a way that the company can effectively attract, motivate, and retain principle entrepreneurs
        2. Rewarding people according to the value they create for the organization. There are several tools to accomplish this, including base pay adjustments, annual incentive compensation, spot bonuses, deferred compensation, and other incentives. A key role of managers is to retain and motivate employees who are adding superior value. By paying for value created, we help ensure the firm’s competitiveness
        3. Important to align incentives across business units so that there is no in-fighting
        4. The value of missed opportunities and avoidance of errors should also try to be estimated and included. Makes opportunity cost tangible by taking missed opportunities into account with bonuses and salaries
        5. Koch advises entrepreneurs to stay private no matter how big their company gets
        6. Incentives are incredibly important. Koch incentivizes its employees by paying on marginal contribution and value created in their unit and then based on their contribution. It will never be perfect but it must be directionally correct and the reasoning behind it must be explained as well. Must signal what is valued most highly and doing so in a principled manner. Must be financial and non-financial – meaning, challenge, competition, praise, belief in the mission, being part of a successful team, personal growth
        7. Incentives are as important for external counter parties such as customers, suppliers, contractors, shareholders, distributors, agents, trading partners, former industry employees, specialists, universities, technology developers, consultants, communities, and governments. Aligning incentives with performance is almost always effective but must take these external parties into account too. Must understand what each values and deliver on it. Communities want a good neighbor, who takes care of the area, protects the environment, operates safely, and provides good jobs
        8. Budgets are often useless and sometimes counterproductive if they perverse behavior through misaligned incentives
        9. Framework for determining incentive pay (never perfect but directionally correct and must be explained to the employee)
          1. Determine the value created by the employee’s business unit, facility, or service group to Koch, considering current earnings and return on capital, change in capabilities, competitive position, and the risk-adjusted value of innovations and growth initiatives – that is, the prospect for future earnings
          2. After thoroughly assessing all the employee’s contributions to the value the unit created (positive and negative), we compare this to the contribution necessary for her base compensation. To the extent that her contribution exceeds this amount, we award a bonus or other incentive compensation based on that difference
          3. Deductions are taken for any compliance or EH&S problems to which the employee has contributed. If such problems are serious enough, they could wipe out the employee’s entire award. Additions to, or subtractions from, the employee’s compensation will also be made if she has had a significant positive (or negative) effect on the unit’s culture
    10. Good Profit
      1. ​Good Profit is about providing value to the customer while also benefiting society and comes from Principled Entrepreneurship: creating superior value while using fewer resources and always acting lawfully and with integrity. It comes from contributing something to society. This is the vision of Market Based Management which Charles Koch began developing in the ’60s. It takes a win-win framework and allows Koch Industries to adapt and deal with change more effectively than others. They have prospered through the years with no government aid or external help because their focus is always on producing value. MBM, while simple, is not easy. The whole organization must understand the principles so deeply that they can adapt to any problems or circumstances
      2. Good Profit is what follows when long-term value is generated for customers, employers, shareholders, and society. MBM generates Good Profit
      3. Good Profit 101: providing the best hassle-free service to our clients at the lowest cost to them and attracting the best employees based on the opportunities we offered. Our goal was – and still is – to be the counterparty of choice to our customers, vendors, communities, and employees
      4. The most reliable signal that a business is using reality-grounded mental models and providing service that customers truly value is a profit made over time under beneficial rules of just conduct
      5. Opportunity Cost – the true cost of any activity is the highest-value activity forgone
      6. Subjective Value – At Koch we also urge our salespeople to understand each customer’s subjective values and tailor the way we deal with them accordingly. Many public companies value steady, predictable earnings more than larger (on average) earnings that are more volatile, since steady earnings tend to result in a higher stock price. Because of this difference in subjective values between us and our customers, it can be mutually beneficial for us to absorb the price risk in our contracts, and for them to compensate us for it. Koch is always willing to do this kind of win-win business. Listen to partners particular needs and design structures that suit both parties well. Strive for speed, certainty, confidentiality, efficient and responsive deal screening, and to concede terms that are important to the seller but not as important to Koch.
    11. 8 steps in the Decision Making Framework
      1. Briefly describe the authority being requested
      2. Give the background and a summary of the value proposition
      3. Outline the objective with the strategic fit
      4. Prepare an economic summary with a base case, as well as other plausible scenarios that could make the project much better or worse
      5. Identify the key value drivers
      6. Describe the key risks and mitigants
      7. List the alternatives considered and why the one shown is best
      8. Project the timeline for future steps
        1. Decision traps – overconfidence, framing, anchoring, status quo bias, sunk costs, information / confirmation bias, confusing random events with patterns, allowing a leader’s past rejections to stop the consideration of good future opportunities, conservatism trap
    12. Ludwig von Mises (Human Action) was a big influence in Koch’s philosophy and management style (as was Polanyi’s Republic of Science)
      1. The more books I read, the more passionately I embraced the truth that widespread human well-being demands a system that clearly defines and protects private property rights, allows people to speak freely without intimidation or legal repercussions, refrains from interference with private parties’ agreements and exchanges, and allows human action – rather than arbitrary notions about how much things “should” cost – to guide prices. Allowing people the freedom to pursue their own interests (within the limits of just conduct) is the best and only sustainable way to achieve societal progress. For individuals to develop and have a chance at happiness, they must be free to make their own choices and mistakes, rather than be forced to accept choices made for them by others. As I digested this and went about my business, it dawned on me that these principles are fundamental to the well-being not only of societies – as I learned through my interdisciplinary studies – but also of organizations, which are essentially small societies. When encountering a challenge at work (such as sunk cost or competitive disadvantage), I began responding with the principles of a free society in mind. And sure enough, one concept at a time, I saw that that the principles that worked in society also worked in an organization.
      2. As a young man Charles spent his nights in Wichita Kansas reading every subject trying to understand what principle allows people to flourish. He took ideas from all disciplines such as physics and Newton’s Third Law of Motion regarding reciprocation. Came to understand that organizations are like miniature societies and what would benefit society at large would also benefit organizations
    13. Experimental Discovery > A Grand Plan
      1. ​Must have an experimental discovery mindset rather than a grand plan mindset. Must also know when you are experimenting and bet accordingly. The point is that progress – whether in business, an economy, or science – comes through experimentation and failure. Those who favor a “grand plan” over experimentation fail to understand the role that failed experiments play in creating progress in society. Failures quickly and efficiently signal what doesn’t work, minimizing waste and redirecting scarce resources to what does work. A market economy is an experimental discovery process, in which business failures are inevitable and any attempt to eliminate them only ensures even greater failures. For experimental discovery to work, we have to not only design experiments properly but also recognize when we are experimenting so we can limit the bet accordingly. Koch companies have suffered whenever we forgot we were experimenting and made bets as if the risks were small when they were not.
      2. Smith and Hayek demonstrated that prosperity can take place only through spontaneous order, an order that results from unscripted human action, not human design.
      3. The process of discovery begins when we observe, often vaguely, a gap between what is and what could be. Our intuition tells us something better is just beyond the range of our mind’s eye. To build a culture of discovery, we must encourage, not discourage, the passionate pursuit of hunches (no matter the origin!).
    14. Metrics
      1. Knowing why something is profitable is often as valuable as knowing what is profitable. For this reason, a business must also develop measures that help it understand the drivers of profitability. Prices and profit and loss tell us what people value and the best methods and resources to satisfy those values. They are also the primary indicators of whether we are doing the right thing as a company. In a true market economy, one in which prices are allowed to freely adjust, profit and loss is the market’s objective measure of the value a business is contributing to society. To succeed, a business must not only develop profit and loss measures, but also determine their underlying drivers, in order to understand what is adding value, what is not, and why. This knowledge informs its vision and strategies, leads to innovations, creates opportunities to eliminate waste, and guides continuous improvement
      2. The most valuable measures keep us on track in advancing our vision by enabling us to identify opportunities and problems, and by stimulating innovations,
      3. A successful organization should measure – and do its best to understand – the profitability (and profitability drivers) of its assets, products, strategies, customers, agreements, and employees, and anything else for which it is practical to do so
      4. When measuring, accuracy should always be emphasized over precision. As we use the terms, accuracy is the degree of correctness that creates value. Precision goes beyond that, to near perfection. Perfection, thus, is thus the enemy of progress
      5. Most decisions should be made using marginal analysis. This requires understanding the difference between costs and benefits that are marginal and those that are not, such as sunk costs. Only by making decisions on the appropriate margin will a business consistently enhance its profitability and eliminate waste. That margin will vary enormously depending on the decision.
    15. Other
      1. ​Charles father, Fred, founded what would later become Koch Industries. When Charles joined in 1961 it had a net worth of about $21 million and as of 2015 the number has reached an approximate $100 billion. Father always stressed integrity, humility, character and the fact that adversity is the best way to improve your character and to learn. His father put them to work full-time when he was young following that his son would never become a country club bum
      2. Since Charles took over, they have reinvested 90% if their profits and aim to double profits every 6 years (~12% annual growth)
      3. Their strong balance sheet insured their suppliers that they would pay in full and promptly. Their goal was always to be the counterparty of choice
      4. Corporate welfare is damaging because it limits competition, innovation, and customer options
      5. Koch makes acquisitions when they can provide additional value through their internal capabilities, can improve existing businesses or provide new platforms for growth. I often think of what we do as bricklaying. Or perhaps more precisely, stonemasonry. Once a stone has been carefully selected and set, it shapes a new space in which the mason can set yet another well chosen stone. Each stone is different, but they all fit together to create a framework that is mutually reinforcing
      6. Getting the right people was Charles’ main focus from day one
      7. Creative destruction, while painful for some, is a net positive for society while corporate welfare is a net negative
      8. The man who understands principles can apply his own methods, the man who tries methods, ignoring principles, is sure to have trouble
      9. Deciding the order in which to do things can be just as important in deciding what to do. Three step process: quantify, simplify, prioritize
      10. Hiring, retaining, teaching, and inspiring people is one of the most important functions of the organization. You should aim to always hire virtuous people regardless of open positions. Coach employees to be the best that they can and consider moving them around within the company if their skills aren’t lined up with their role
      11. Avoid entering into partnerships without an exit mechanism
      12. The apprentice model has been extremely effective at teaching newer hires. There are 4 stages – I do, you watch; I do, you help; you do, I help; you do, I watch
      13. Every organization has its own culture. If that culture is not created consciously and purposively, it will degenerate into a cult of personality or an anything goes environment. You can never think of yourself as too big or too good to fail. Koch’s culture comes from the framework of the free society, where innovation and productivity thrive – to the degree that the framework is upheld. The second category is the theories of philosophers and psychologists whose behavioral prescriptions strike me as refreshingly reality-based – thinkers such as Hayek, Polanyi, and Maslow. The third is my own life experience, which was spent working with all different kinds of people.
What I got out of it
  1. An amazing look into what has turned Koch from a $21m operation in the ’60s to an over $100b organization today. Simple (but not easy) principles which are scale invariant, win-win, sustainable, and adaptable. An organization is a mini free-society and what works at the largest level of society, works just as well at the level of organizations. Treat people as they want to be treated, be trusting, reward people for the value they create

Finite and Infinite Games: A Vision of Life as Play and Possibility by James P. Carse

Summary

  1. There are at least two kinds of games. One could be called finite, the other infinite. A finite game is played for the purpose of winning, an infinite game for the purpose of continuing the play.

 

Key Takeaways

  1. If a finite game is to be won by someone it must come to a definitive end. It will come to an end when someone has won. The spectators or referee may approve but the players must agree who has won the game. There is no finite game unless the players freely choose to play it. No one can play who is forced to play. It is an invariably principle of all play, finite and infinite, that whoever plays, plays freely. Whoever must play, cannot play. 
  2. A finite game also has a precise beginning and can therefore be said to have temporal boundaries, be played within a marked area and with specific players. One cannot play alone and therefore there are numerical boundaries as well. There can only be one winner and others are ranked
  3. Infinite games are in sharp contrast except in that if one must play, they cannot play. Infinite players cannot day when their game began, nor do they care. They do not care for the reason that their game is not bounded by time. Indeed, the only purpose of the game is to prevent the game from coming to an end, to keep everyone in play. There are no numerical, temporal or spatial boundaries. They are internally rather than externally defined. Since each play of an infinite game eliminates boundaries, it opens to players a new horizon of time
  4. Finite games can be played within an infinite game, but an infinite game cannot be played within a finite game. Infinite players regard their wins and losses in whatever finite games they play as but moments in continuing play
  5. The rules will be different for each finite game. It is, in fact, by knowing what the rules are that we know what the game is. The rules of a finite game are the contractual terms by which the players can agree who has won. The agreement of the players to be applicable rules constitutes the ultimate validation of those rules
  6. The most critical distinction between finite and infinite games is that the rules of an infinite game must change during the course of play. The rules are changed when the players of an infinite game agree that the play is imperiled by a finite outcome – that is, by the victory do some players and the defeat of others. The rules of an infinite game are changed to prevent anyone from winning the game and to bring as many persons as possible into play.
  7. No limitation may be imposed against infinite play. Since limits are taken into play, the play itself cannot be limited. Finite players play within boundaries; infinite players play with boundaries. Finite players are often unaware of this absolute freedom to play and will Cole to think that whatever they do they must do. All limitations of finite play are self-limitations.
  8. Self-veiling
    1. Some self-veiling is present in all finite games. Players must intentionally forget the inherently voluntary nature of their play, else all competitive effort will desert them. The issue is whether we are ever willing to drop the veil and openly acknowledge, if only to ourselves, that we have freely chosen to face the world through a mask. Since finite games can be played within an infinite game, infinite players do not eschew the performer roles of finite play. On the contrary, they enter into finite games with all the appropriate energy and self-veiling, but they do so without the seriousness of finite players. They embrace he abstractness of finite games as abstractness, and therefore take them up not seriously, but playfully. They freely use masks in their social engagements, but not without acknowledging to themselves and others that they are masked. For that reason they regard each participant in finite play as that person playing and not as a role played by someone. Seriousness is always related to roles, or abstractions. Seriousness closes itself to consequence but everything that happens when we are playful is of consequence
  9. Theatrical vs. Dramatic
    1. Inasmuch as finite games are intended for conclusion, inasmuch as its roles are scripted and performed for an audience, we shall refer to finite play as theatrical. Inasmuch as infinite players avoid any outcome whatsoever, keeping the future open, making all scripts useless, we shall refer to finite play as dramatic. Dramatically, one choose to be a mother; theatrically, one takes on the role of mother. Finite games are dramatic during their play as the outcome is yet unknown. The theatricality if it has to do with the fact that there is an outcome.
  10.  Surprise
    1. It is the desire of all finite players to be Master Players, to be so perfectly skilled in their play that nothing can surprise them, so perfectly trained that very move in the game is foreseen at the beginning. By surprising our opponent we are more likely to win. Surprise in finite play is the triumph of the past over the future. The Master Player who already knows what moves are to be made has a decisive advantage over the unprepared player who does not yet know what moves will be made. Infinite players, on the other hand, continue their play in the expectation of being surprised. If surprise is no longer possible, all play ceases. Surprise causes finite play to end; it is the reason for infinite play to continue. Surprise in infinite play is the triumph of the future over the past. Since infinite players do not regard the past as having an outcome, they have no way of knowing what has been begun there. With each surprise, the past reveals a new beginning in itself. Inasmuch as the future is always surprising, the past is always changing. Because finite players are trained to prevent the future from altering the past, they must hide their future moves. The unprepared opponent must be kept unprepared. Finite players must appear to be something other than what they are. Everything about their appearance must be concealing. To appear is not to appear. All the moves of a finite player must be deceptive: feints distractions, falsifications, misdirections, mystifications. Because infinite players prepare themselves to be surprised by the future, they play in complete openness. It is not an openness as in candor, but an openness as in vulnerability. The infinite player does not expect to be amused by surprise, but to be transformed by it, for surprise does not alter some abstract past, but one’s own personal past. To be prepared against surprise is to be trained. To be prepared for surprise is to be educated. Education discovers an increasing richness in the past, because it sees what is unfinished there. Training regards the past as finished and the future to be finished. Education leads toward a continuing self-discovery; training leads toward a final self-definition. Training repeats a completed past in the future. Education continues an unfinished past into the future.
  11. Titles, Death & Immortality
    1. What one wins in a finite game is a title. Titles are public, they are for others to notice, it depends on its visibility, its noticeability to others. It is a principal function of society to validate titles and to assure their perpetual recognition. It is in connection with the timelessness of titles that we can first discern the importance of death to both finite and infinite games and the great difference between the ways death is understood in each. A finite game must always be won with a terminal move, a final act within the boundaries of the game that establishes the winner beyond any possibility of challenge. A terminal move results, in other words, in the death of the opposing player as player. The winner kills the opponent. The loser is dead in the sense of being incapable of further play. Death, in finite play, is the triumph of the past over the future, a condition in which no surprise is possible. One can have death in life and for some this is regarded as an achievement, the result of spiritual discipline by extinguishing all traces of struggle with the world, a liberation from the need for any title whatsoever. Life in death concerns those who are titled and whose titles, since timeless, may not be extinguished by death. Immortality, in this case, is not a reward but the condition necessary to the possession of rewards. What the winners of finite games achieve is not properly an afterlife but an afterworld, not continuing existence but continuing recognition of their titles
    2. There is a contradiction here: If the prize for winning finite play is life, then the players are not properly alive. They are competing for life. Life, then, is not play, but the outcome of play. Finite players play to live; they do not live their playing. Life is therefore deserved, bestowed, possessed, won. It is not lived. This is a contradiction to all finite play. Because the purpose of a finite game is to bring play to an end with the victory of one of the players, each finite game is played to end itself. The contradiction is precisely that all finite play is play against itself.
    3. Death, for finite players, is abstract, not concrete. It is not the whole person, but only an abstracted fragment of the whole, that dies in life or lives in death. Immortality is the state of forgetting that we have forgotten – that is, overlooking the fact that we freely decided to enter into finite play, a decision in itself playful and not serious. Immortality is therefore the supreme example of the contradictoriness of finite play: it is a life one cannot live
    4. Infinite players die. Since the boundaries of earth are always part of the play, the infinite player does not die at the end of play, but in the course of play. The death of an infinite player is dramatic. It does not mean that the game comes to an end with death; on the contrary, infinite players offer their death as a way of continuing the play. For that reason they do not play for their own life; they live for their own play. But since that play is always with others, it is evident that infinite players both live and die for the continuing life of others. Where the finite player plays for immortality, the infinite player plays as a mortal. In infinite play one chooses to be mortal inasmuch as one always plays dramatically, that is, toward the open, toward the horizon, toward surprise, where nothing can be scripted. It is a kind of play that requires complete vulnerability. To the degree that one is protected against the future, one has established a boundary and no longer plays with but against others. Although infinite players choose mortality, they may not know when death comes, but we can always say of them that they die at the right time. The finite play for life is serious; the infinite play of life is joyous. Infinite play resounds throughout with a kind of laughter. It is not a laughter at others who have come to an unexpected end, having thought they were going somewhere else. It is laughter with others with whom we have discovered that the end we thought we were coming to has unexpectedly opened. We laugh not at what has surprisingly come to be impossible for others, but over what has surprisingly come to be possible with others
  12. Power and Strength
    1. If finite players acquire titles from winning their games, we must say of infinite players that they have nothing but their names. Names are given but at a time when a person cannot yet have done anything. Titles are given at the end of play, names at the beginning. Titles are abstractions; names are always concrete. Titles point backward in time. They have their origin in an unrepeatable past, they are theatrical and each has a specified ceremonial form of address and behavior. Insofar as we recognize their titles we withdraw from any contest with them in those arenas – cannot compete with the Dalai Lama. The titled are powerful. The exercise of power presupposes opposition, a closed field and finite units of time. My power is determined by the amount of resistance I can displace within given spatial and temporal limits. The establishment of the limits make it possible to know how powerful I am in relation to others. Power is always measured in units of comparison. Power is a concept that belongs only in finite play. To speak meaningfully of a person’s power is to speak of what that person has already completed in one or another closed field. To see power is to look backward in time. Inasmuch as power is determined by the outcome of a game, one does not win by being powerful; one wins to be powerful. If one has sufficient power to win before the game has begun, what follows is not a game at all.
    2. One can be powerful only through the possession of an acknowledged title – that is, only through the possession of an acknowledged title – that is, only by the ceremonial deference of others. Power is never one’s own, and in that respect it shows the contradiction inherent in all finite play. I can be powerful only by not playing, by showing that the game is over. I can therefore have only what powers others give me. Power is bestowed by an audience after the play is compete. Power is contradictory, and theatrical
    3. We do not play against reality; we play according to reality. If I accept death as inevitable, I do not struggle against mortality. I struggle as a mortal. All the limitations of finite play are self-limitations
    4. How then do infinite players contend with power? Infinite play is always dramatic; its outcome is endlessly open. Infinite players do not oppose the actions of others, but initiate actions of their own in such a way that others will respond by initiating their own. Let us say that where the finite player plays to be powerful the infinite player plays with strength. Power is concerned with what has already happened; strength with what has yet to happen. Power is finite in amount. Strength cannot be measured, because it is an opening and not a closing act. Power refers to the freedom persons have within limits, strength to the freedom persons have with limits. Power will always be restricted to a relatively small number of selected persons. Anyone can be strong. Strength is paradoxical. I am not strong because I can force others to do what I wish as a result of my play with them, but because I can allow them to do what they wish in the course of my play with them. 
      1. Power vs. Force and Hawkins ties in beautifully here
      2. Infinite players focus on others, in helping them grow and achieve. That is how they gain strength – you allow them to do what they wish in the course of my play with them. You raise them up, make them better, allowing the game to continue
  13. Evil
    1. Evil is the termination of infinite play. It is infinite play coming to an end in unheard silence. Unheard silence is not the loss of the player’s voice, but the loss of listeners for that voice. Evil is not the termination of a finite game. Evil is not the attempt to eliminate the play of another according to published and accepted rules, but to eliminate the play of another regardless of the rules. Evil is not the acquisition of power, but the expression of power. It is the forced recognition of a title – and therein lies the contradiction of evil, for recognition cannot be forced
    2. Evil is never intended as evil. Indeed, the contradiction inherent in all evil is that it originates in the desire to eliminate evil. Evil arises in the honored belief that history can be tidied up, brought to a sensible conclusion. Your history does not belong to me. We live with each other in a common history. Infinite players understand the inescapable likelihood of evil. They therefore do not attempt to eliminate evil in others, for to do so is the very impulse of evil itself, and therefore a contradiction. They only attempt paradoxically to recognize in themselves the evil that takes the form of attempting to eliminate evil elsewhere. Evil is not the inclusion of finite games in an infinite game, but the restriction of all play to one or another finite game.
  14. Contradictory vs. Paradoxical
    1. Infinite play is inherently paradoxical, just as finite play is inherently contradictory. Because it is the purpose of infinite players to continue the play, they do not play for themselves. The contradiction of finite play is that they players desire to bring play to an end for themselves. The paradox of infinite play is that the players desire to continue the play in others. The paradox is precisely that they play only when others go on with the game. Infinite players play best when they become least necessary for the continuation of play. It is for this reason they play as mortals. The joyfulness of infinite play, its laughter, lies in learning to start something we cannot finish
      1. Why the best leaders work themselves out of a job!! 
  15. No one can play alone
    1. No one can play a game alone. One cannot be human by oneself. There is no selfhood where there is no community. We do not relate to others as the persons we are; we are who we are in relating to others. Simultaneously the others with whom we are in relation are themselves in relation. We cannot relate to anyone who is not also relating to us. Our social existence has, therefore, an inescapably fluid character. This is not to say that we live in a fluid context, but that our lives are themselves fluid. As in the Zen image we are not the stones over which the stream of the world flows; we are the stream itself. As we shall see, this ceaseless change does not mean discontinuity; rather change is itself the very basis of out continuity as persons. Only that which can change can continue: this is the principle by which infinite players live.
    2. It is this essential fluidity of our humanness that is irreconcilable with the seriousness of finite play. It is, therefore, this fluidity that presents us with an unavoidable challenge: how to contain the serious within the truly playful; that is, how to keep all our finite games in infinite play
  16. We must learn the fine arts of war and independence so that our children can learn architecture and engineering so that their children may learn the fine arts and painting.” – John Quincy Adams
  17. Before I can have an enemy, I must persuade another to recognize me as an enemy
  18. Society vs. Culture
    1. In their own political engagements infinite players make a distinction between society and culture. Society they understand as the sum of those relations that are under some form of public constraint, culture as whatever we do with each other by undirected choice. If society is all that a people feels it must do, culture is the realm of the variable, free, not necessarily universal, of all that cannot lay claim to compulsive authority. Society applies only to those areas of action which are believed to be necessary. Society is necessary and finite, culture variable and infinite. The power of a society is determined by its victory over other societies in still larger finite games. Its most treasured memories are those of the heroes fallen in victorious battles with other societies. Heroes of lost battles are almost never memorialized.
    2. The power in a society is guaranteed and enhanced by the power of a society. Because power is inherently patriotic, it is characteristic of finite players to seek a growth of power in a society as a way of increasing the power of a society. Society is a manifestation of power. It is theatrical, having an established script. It is in the interest of a society therefore to encourage competition within itself, to establish the largest possible number of prizes, for the holders of prizes will be those most likely to defend the society as a whole against its competitors. Because culture is infinite and has no temporal limits, a culture understands its past not as destiny, but as history, that is, as a narrative that has begun but points always toward the endlessly open. It is a highly valued function of society
    3. It is a highly valued function of society to prevent changes in the rules of the many games it embraces. Deviancy, however, is the very essence of culture. Whoever merely follows the script, merely repeating the past, is culturally impoverished
  1. Reminds me of Paul Graham and his point about great entrepreneurs bucking social trends, norms, expectations, working in what might be called the non-prestigious or embarrassing areas – deviancy
    1. Society has all the seriousness of immortal necessity; culture resounds with the laughter of unexpected possibility. Society is abstract, culture concrete
    2. Because an infinite game cannot be brought to an end, it cannot be repeated. Unrepeatability is a characteristics of culture everywhere. Just as an infinite game has rules, a culture has a tradition. Since the rules of play in an infinite game are freely agreed to and freely altered, a cultural tradition is both adopted and transformed in its adoption. Properly speaking, a culture does not have a tradition; it is a tradition
    3. Property must be seen as compensation for considerable labor given, as a restoration to the condition one was in prior to competition and must be seen as consumed. The more powerful we consider persons to be, the less we expect them to do, for their power can come only from that which they have done. Consumption is an activity so different from gainful labor that it shows itself in the mode of leisure, even indolence. We display the success of what we have done by not having to do anything. The more we use up, therefore, the more we show ourselves to be winners of past contests.
    4. Those persons whose victories the society wishes never to forget are given prominent and eternal monuments at the heart of its capital cities, often taking up considerable space, diverting traffic, and standing in the path of casual strollers. It is apparent to infinite players that wealth is not so much possessed as it is performed
    5. Infinite players have rules; they just do not forget that rules are an expression of agreement and not a requirement for agreement
    6. It can be said that where a society is defined by its boundaries, a culture is defined by its horizon. A boundary is a phenomenon of opposition. It is the meeting place of hostile forces. Where nothing opposes there can be no boundary. One cannot move beyond a boundary without being resisted. A horizon is a phenomenon of vision. One cannot look at the horizon; it is simply the point beyond which we cannot see. There is nothing in the horizon itself, however, that limits vision, for the horizon opens onto all that lies beyond itself. What limits vision is rather the incompleteness of that vision. One never reaches a horizon. It is not a line; it has no place; it encloses no field; its location is always relative to the view. To move toward a horizon is simply to have a new horizon. One can therefore never be close to one’s horizon, though one may certainly have a short range of vision, a narrow horizon. Every move the infinite player makes is toward the horizon. Every move made by a finite player is within a boundary. Every moment of an infinite game therefore presents a new vision, a new range of possibilities. The Renaissance, like all genuine cultural phenomena, was not an effort to promote one or another vision. It was an effort to find visions that promised still more vision. Who lives horizontally is never somewhere, but always in passage
  1. It is essential to the effectiveness of every title that it be visible and that in its visibility it point back at the contest in which it was won. The purpose of property is to make our titles visible. Property is emblematic. It recalls to others those areas in which our victories are beyond challenge. Property may be stolen, but the thief does not own it. Ownership can never be stolen. Titles are timeless, and so is the ownership of property
  2. Force and Storytellers
    1. Only agreement establishes force, never the other way around. Only those who consent to a society’s constraints see them as constraints – that is, as guides to action and not as actions to be opposed. Those who challenge the existing pattern of entitlements in a society do not consider the designated officers of enforcement powerful; they consider them opponents in a struggle that will determine by its outcome who is powerful. One does not win by power; one wins to be powerful. Rather than force, the more effective policy for a society is to find ways of persuading its thieves to abandon their role as competitors for property for the sake of becoming audience to the theater of wealth. It is for this reason that societies fall back on the skill of the poietai (storytellers) who can theatricalize the property relations, and indeed, all the inner structures of each society. While societal thinkers
    2. While societal thinkers may not overlook the importance of poiesis, or creative activity, neither may they underestimate its danger, for the poietai are the ones most likely to remember what has been forgotten – that society is a species of culture. The deepest and most consequent struggle of each society is therefore not with other societies, but with the culture that exists within itself – the culture that is itself. Conflict with other societies is, in fact, an effective way for a society to restrain its own culture. Powerful societies do not silence their poietai in order that they may go to war; they go to war as a way of silencing their poietai.
    3. What confounds a society is not serious opposition but the lack of seriousness altogether. Once warfare, or any other societal activity, has been taken into the infinite play of poiesis so that it appears to be either comical or pointless (in the way that, say, beauty is pointless) there is an acute danger that the soldiers will find no audience for their prizes, and therefore no reason to fight for them
    4. Art is never in possession, art is dramatic, opening always forward, beginning something that cannot be finished
    5. Artists cannot be trained. One does not become an artist by acquiring certain skills or techniques, though one can use any number of skills and techniques in artistic activity. The creative is found in anyone who is prepared for surprise. Such a person cannot go to school to be an artist, but can only go to school as an artist
  3. War
    1. For a bounded, metaphysically veiled, and destined society, enemies are necessary, conflict inevitable, and war likely
    2. War presents itself as necessary for self-protection, when in fact it is necessary for self-identification. If it is the impulse of a finite player to go against another nation in war, it is the design of an infinite player to oppose war within a nation. Finite players go to war against states because they endanger boundaries; infinite players oppose states because they engender boundaries
    3. Winning a war can be as destructive as losing one, for if boundaries lose their clarity, as they do in a decisive victory, the state loses its identity. A war fought to end all wars, in the strategy of finite play, only breeds universal warfare. The strategy of infinite players is horizonal. They do not go to meet putative enemies with power and violence, but with poiesis and vision. They invite them to become a people in passage. Infinite players do not rise to meet arms with arms; instead, they make use of laughter, vision, and surprise to engage the state and put its boundaries back into play. What will undo any boundary is the awareness that it is our vision, and not what we are viewing, that is limited
    4. True poets lead no one unawares. It is nothing other than awareness that poets – that is, creators of all sorts – seek. They do not display their art so as to make it really; they display the real in a way that reveals it to be art
    5. Metaphysics is about the real but is abstract. Poetry is the making (poeisis) of the real and is abstract. To separate the poeima from poiesis, the created object from the creative act, is the essence of the theatrical. Poets cannot kill; they die. Metaphysics cannot die; it kills
  4. Genius
    1. The paradox of genius exposes us directly to the dynamic of open reciprocity, for if you are the genius of what you say to me, I am the genius of what I hear you say. What you say originally I can hear only originally. As you surrender the sound on your lips, I surrender the sound in my ear. Each of us has relinquished to the other what has been relinquished to the other
    2. I am both the outcome of my past and the transformation of my past. To be related to the past as its outcome is to stand in causal continuity with it
    3. Not allowing the past to be the past may be the primary source for the seriousness of finite players. Inasmuch as finite play always has its audience, it is the audience to whom the finite player intends to be known as winner. The finite player, in other words, must not only have an audience but must have an audience to convince. Just as the titles of winners are worthless unless they are visible to others, there is a kind of antititle that attaches to invisibility. To the degree that we are invisible we have a past that has condemned us to oblivion. It is as though we have somehow been overlooked, even forgotten, by our chosen audience. It is the winners who are presently visible, it is the losers who are invisibly past. As we enter into finite play – not playfully, but seriously – we come before an audience conscious that we bear the antititles of invisibility. We feel the need, therefore, to prove to them that we are not what we think they think we are or, more precisely, that we were not who we think the audience thinks we were. As with all finite play, an acute contradiction quickly develops at the heart of this attempt. As finite players we will not enter the game with sufficient desire to win unless we are ourselves convinced by the very audience we intend to convince. That is, unless we believe we actually are the losers the audience sees us to be, we will not have the necessary desire to win. The more negatively we assess ourselves, the more we strive to reverse the negative judgment of others. The outcome brings the contradiction to perfection: by proving to the audience they were wrong, we prove ourselves the audience was right. The more we are recognized as winners, the more we know ourselves to be losers. That is why it is rare for the winners of highly coveted and publicized prizes to settle for their titles and retire. Winners, especially celebrated winners, must prove repeatedly they are winners. The script must be played over and over again. Titles must be defended by new contests. No one is ever wealthy enough, honored enough, applauded enough. On the contrary, the visibility of our victories only tightens the grip of the failures in our invisible past. So crucial is this power of the past to finite play that we must find ways of remembering that we have been forgotten to sustain our interest in the struggle. There is a humiliating memory at the bottom of all serious conflicts. Indeed, it is only by remembering what we have forgotten that we can enter into competition with sufficient intensity to be able to forget we have forgotten the character of all play: whoever must play cannot play. Whenever we act as the genius of ourselves, it will be in the spirit of allowing the past to be the past. It is the genius in us who is capable of ridding us of resentment by exercising what Nietzsche called the “faculty of oblivion,” not as a way of denying the past but as a way of reshaping it through our own originality. Then we forget that we have been forgotten by an audience, and remember that we have forgotten our freedom to play
      1. I think a clear look into why top performers tend to be insecure, narcissistic, self-consumed. They fear being invisible more than anything else and have to continuously prove to themselves they are not losers
  5. Touching vs. Moving
    1. Genius arises with touch. Touch is a characteristically paradoxical phenomenon of infinite play. I am not touched by another when the distance between us is reduced to zero. I am touched only if I respond from my own center – that is, spontaneously, originally. But you do not touch me except from your own center, out of your own genius. Touching is always reciprocal. You cannot touch me unless I touch you in response. The opposite of touching is moving. You move me by pressing me from without toward a place you have already foreseen and perhaps prepared. It is a staged action that succeeds only if in moving me you remain unmoved yourself. I can be moved to tears by skilled performances and heart-rending newspaper accounts, or moved to passion by political manifestos and narratives of heroic achievement – but in each case I am moved according to a formula or design to which the actor or agent is immune. We can only be moved by persons who are not what they are; we can be moved only when we are not who we are, but are what we cannot be. When I am touched, I am touched only as the person I am behind all the theatrical masks, but at the same time I am changed from within – and whoever touches me is touched as well. We can be moved only by way of our veils. We are touched through our veils.
      1. Reminiscent of Hawkins’ “Power vs. Force”
    2. If to be touched is to respond from one’s center, it is also to respond as a whole person. To be whole is to be hale, or healthy. In sum, whoever is touched is healed. The finite player’s interest is not in being healed, or made whole, but in being cured, or made functional. Healing restores me to play, curing restores me to competition in one or another game. Being ill is to be dysfunctional; to be dysfunctional is a kind of death, an inability to acquire titles. The ill become invisible. Illness always has the smell of death about it: Either it may lead to death, or it leads to the death of a person as competitor. The dread of illness is the dread of losing. One is never ill in general. One is always ill within relation to some bounded activity. It is not cancer that makes me ill. It is because I cannot work, or run, or swallow that I am ill with cancer. The loss of function, the obstruction of an activity, cannot in itself destroy my health. I am too heavy to fly by flapping my arms, but I do not for that reason complain of being sick with weight. When I am healed I am restored to my center in a way that my freedom as a person is not compromised by my loss of functions. This means that the illness need not be eliminated before I can be healed. I am not free to the degree that I can overcome my infirmities, but only to the degree that I can put my infirmities into play. I am cured of my illness; I am healed with my illness. Healing, of course, has all the reciprocity of touching. Just as I cannot touch myself, I cannot heal myself. But healing requires no specialists, only those who can come to us out of their own center, and who are prepared to heal themselves.
    3. Sexuality for the infinite player is entirely a matter of touch. One cannot touch without touching sexually. Aware that genuine sexual expression is at least as dangerous to society as genuine artistic expression, the sexual metaphysician can appeal to at least two powerful solutions. One is to treat sexuality as a process of reproduction; another is to place it in the area of feeling and behavior. The profound seriousness of such sexual play is seen in the unique nature of the prize that goes to the winner. What one wants in the sexual contest is not just to have defeated the other, but to have the defeated other. Sexuality is the only finite game in which the winner’s prize is the defeated opponent. In the complex plotting of sexual encounter it is by no means uncommon for the partners to have played a double game in which each is winner and loser, and each is an emblem for the other’s seductive power. Finite sexuality is a form of theater in which the distance between persons is regularly reduced to zero but in which neither touches the other. The most serious struggles are those for sexual property. For this wars are fought, lives are generously risked, great schemes are initiated. However, who wins empire, fortune, and fame but loses in love has lost in everything.
    4. Sexual desires are usually not directly announced but concealed under a series of feints, gestures, styles of dress, and showy behavior. Seductions are staged, scripted, costumed. Certain responses are sought, plots are developed. In skillful seductions delays are employed, special circumstances and settings are arranged. Seductions are designed to come to an end. Time runs out. The play is finished. All that remains is recollection, the memory of a moment, and perhaps a longing for its repetition. Seductions cannot be repeated. Once one has won or lost in a particular finite game, the game cannot be played over. Moments once reached cannot be reached again. The appetite for novelty in lovemaking- new positions, the use of drugs, exotic surroundings, additional partners – is only a search for new moments that can live on only in recollection. As with all finite play, the goal of veiled sexuality is to bring itself to an end. By contrast, infinite players have no interest in seduction or in restricting the freedom of another to one’s own boundaries of play. Infinite players recognize choice in all aspects of sexuality. They may see in themselves and in others, for example, the infant’s desire to compete for the mother, but they also see that there is neither physiological nor societal destiny in sexual patterns. Who chooses to compete with another can also choose to play with another. Sexuality is not a bounded phenomenon but a horizonal phenomenon for infinite players. One can never say, therefore, that an infinite player is homosexual, or heterosexual, or celibate, or adulterous, or faithful – because each of these definitions has to do with boundaries, with circumscribed areas and styles of play. Infinite players do not play within sexual boundaries, but with sexual boundaries. They are concerned not with power but with vision. In their sexual play they suffer others, allow them to be as they are. Suffering others, they open themselves. Open, they learn both about others and about themselves. Learning, they grow. What they learn is not about sexuality, but how to be more concretely and originally themselves, to be the genius of their own actions, to be whole. Moving therefore from an original center, the sexual engagements of infinite players have no standards, no ideals, no marks of success or failure. Neither orgasm nor conception is a goal in their play, although either may be part of the play. There is nothing hidden in infinite sexuality. Sexual desire is exposed as sexual desire and is never therefore serious. Its satisfaction is never an achievement, but an act in a continuing relationship, and therefore joyous. Its lack of satisfaction is never a failure, but only a matter to be taken on into further play.
    5. Infinite sexuality does not focus its attention on certain parts or regions of the body. Infinite lovers have no “private parts.” They do not regard their bodies as having secret zones that can be exposed or made accessible to others for special favors. It is not their bodies but their persons they make accessible to others. The paradox of infinite sexuality is that by regarding sexuality as an expression of the person and not the body, it becomes fully embodied play. It becomes a drama of touching. The triumph of finite sexuality is to be liberated from play into the body. The essence of infinite sexuality is to be liberated into play with the body. In finite sexuality I expect to relate to you as a body; in infinite sexuality I expect to relate to you in your body. Infinite lovers conform to the sexual expectations of others in a way that does not expose something hidden, but unveils something in plain sight: that sexual engagement is a poiesis of free persons. In this exposure they emerge as the persons they are. They meet others with their limitations, and not within their limitations. In doing so they expect to be transformed – and are transformed
  6. Looking vs. Seeing
    1. If to look is to look at what is contained within its limitations, to see is to see the limitations themselves
    2. To look is a territorial activity. It is to observe one thing after another within a bounded space – as though in time it can all be seen. Academic fields are such territories. Sometimes everything in a field finally does get looked at and defined – that is, placed in its proper location. It becomes increasingly difficult to find something new to look at
    3. When we pass from looking to seeing, we do not therefore lose our sight of the objects observed. Seeing, in fact, does not disturb our looking at all. It rather places us in that territory as its genius, aware that our imagination does not create within its outlines but creates the outlines themselves. The physicist who sees speaks physics with us, inviting us to see that the things we thought were there are not things at all. By learning new limitations from such a person, we learn not only what to look for with them but also how to see the way we use limitations. A physics so taught becomes poiesis
  7. Worlds
    1. A finite game occurs within a world. The fact that it must be limited temporally, numerically, and spatially means that there is something against which the limits stand. There is an outside to every finite game. Its limits are meaningless unless there is something to be limited, unless there is a larger space, a longer time, a greater number of possible competitors. There is nothing about a finite game, in itself, that determines at what time it is to be played, or by whom, or where. We cannot have a precise understanding of what it means to be the winner of a contest until we can place the game in the absolute dimensions of a world. World exists in the form of audience. A world is not all that is the case, but that which determines all that is the case. AN audience consists of persons observing a contest without participating in it. No one determines who an audience will be. No exercise of power can make a world. A world must be its own spontaneous sources. If the boundaries of the audience are irrelevant, what is relevant is the unity of the audience. They must be a singular entity, bound in their desire to see who will win the contest before them. The fact that a finite game needs an audience before which it can be played, and the fact that an audience needs to be singularly absorbed in the events before it, show the crucial reciprocity of finite play and the world. There is an indefinite number of worlds
    2. I cannot be a finite player without being divided against myself. A similar dynamic is found in the audience. When sufficiently oblivious to their status as audience, the observers of a finite game become so absorbed in its conduct that they lose the sense of distance between themselves and the players. It is they, quite as much as the players, who win or lose.
    3. A finite game does not have its own time. It exists in a world’s time. An audience allows players only so much time to win their titles. Early in a game time seems abundant, and there appears a greater freedom to develop future strategies. Late in a game, time is rapidly being consumed. As choices become more limited they become more important. Errors are more disastrous. We look on childhood and youth as those “times of life” rich with possibility only because there still seem to remain so many paths open to a successful outcome. Each year that passes, however, increases the competitive value of making strategically correct decisions. The errors of childhood can be more easily amended than those of adulthood. For the finite player in us freedom is a function of time. We must have time to be free. The passage of time is always relative to that which does not pass, to the timeless. Victories occur in time, but the titles won in them are timeless. Titles neither age nor die. The outcome of a finite game is the past waiting to happen. Whoever plays toward a certain outcome desires a particular past. By competing for a future prize, finite players compete for a prized past. The infinite player in us does not consume time but generates it. Because infinite play is dramatic and has no scripted conclusion, its time is time lived and not time viewed. As an infinite player one is neither old nor young, for one does not live in the time of another. There is therefore no external measure of an infinite player’s temporality. Time does not pass for an infinite player. Each moment of time is a beginning. Each moment is not the beginning of a period of time. It is the beginning of an event that gives the time within it its specific quality. For an infinite player there is no such thing as an hour of time. There can be an hour of love, or a day of grieving, or a season of learning, or a period of labor. An infinite player does not begin working for the purpose of filling up a period of time with work, but for the purpose of filling work with time. Work is not an infinite player’s way of passing time, but of engendering possibility. Work is not a way of arriving at a desired present and securing it against an unpredictable future, but of moving toward a future which itself has a future. Infinite players cannot say how much they have completed in their work or love or quarreling, but only that much remains incomplete in it. They are not concerned to determine when it is over, but only what comes of it. For the finite player in us freedom is a function of time. We must have the time to be free. For the infinite player in us time is a function of freedom. We are free to have time. A finite player puts play into time. An finite player puts time into play
      1. Agree and disagree. As long as you can course correct fast enough when you’re young, most decisions aren’t detrimental. But, if you get on a path early on which is taking you in the wrong direction, these early bad decisions can compound and have a far greater and longer-lasting impact than decisions made at a later time
    4. Infinite players can join the audience of any game. They do so, however, for the play that is in observing, quite aware that they are the audience. They look, but they see that they are looking
    5. If the goal of finite play is to win titles for their timelessness, and thus eternal life for oneself, the essence of infinite play is the paradoxical engagement with temporality that Meister Eckhart called “eternal birth.”
  8. Nature
    1. Nature is the realm of the unspeakable. It has no voice of its own, and nothing to say. We experience the unspeakability of nature as its utter indifference to human culture. The Master Player in us tolerates this indifference scarcely at all. Indeed, we respond to it as a challenge, an invitation to confrontation and struggle. If nature will offer us no home, offer us nothing at all, we will then clear and arrange a space for ourselves. We take nature on as an opponent to be subdued for the sake of civilization. We count among the highest achievements of modern society the development of a technology that allows us to master nature’s vagaries.
    2. It is as though, by learning nature’s secret script, we have learned to direct its play as well. There is little left to surprise us. The assumption guiding our struggle against nature is that deep within itself nature contains a structure, an order that is ultimately intelligible to the human understanding. Since this inherent structure determines the way things change, and is not itself subject to change, we speak of nature being lawful, of repeating itself according to quite predictable patterns. What we have done by showing that certain events repeat themselves according to known laws is to explain them. Explanation is the mode of discourse in which we show why matters must be the way they are. All laws made use of in explanation look backward in time from the conclusion or the completion of a sequence. It is implicit in all explanatory discourse that just as there is discoverable necessity in the outcome of past events, there is a discoverable necessity in future events. What can be explained can also be predicted, if one knows the initial events and the laws covering their succession. A prediction is but an explanation in advance.
    3. Because of its thorough lawfulness nature has no genius of its own. On the contrary, it is sometimes thought that the grandest discovery of the human genius is the perfect compatibility between the structure of the natural order and the structure of the mind, thereby making a complete understanding of nature possible. This is as much as to say that nature does have a voice, and its voice is no different from our own. We can them presume to speak for the unspeakable. This achievement is often raised as a sign of the great superiority of modern civilizations over the many faded and lost civilizations of the ancients. While our great skill lies in finding patterns of repetition under the apparent play of accident and chance, less successful civilizations dealt with the threats of natural accident by appealing to supernatural powers for protection. But the voices of the gods proved to be ignorant and false; they have been silenced by the truth. There is an irony in our silencing of the gods. By presuming to speak for the unspeakable, by hearing our own voice as the voice of nature, we have had to step outside the circle of nature. It is one thing for physics and chemistry to be speaking about nature; it is quite another for physics and chemistry to be speaking of nature. No chemist would want to say that chemistry is itself chemical, for our speaking cannot be both chemical and about chemistry. If speaking about a process is itself part of the process, there is something that must remain permanently hidden from the speaker. TO be intelligible at all, we must claim that we can step aside from the process and comment on it “objectively” and “dispassionately,” without anything obstructing our view of these matters. Here lies the irony: by way of this perfectly reasonable claim the gods have stolen back into our struggle with nature. By depriving the gods of their own voices, the gods have taken ours. It is we who speak as supernatural intelligences and powers, masters of the forces of nature. This irony passes unnoticed only so long as we continue to veil ourselves against what we can otherwise plainly see: nature allows no master over itself. Bacon’s principle works both ways (“Nature, to be commanded, must be obeyed”). If we must obey to command, then our commanding is only obeying and not commanding at all. There is no such thing as an unnatural act. Nothing can be done to or against nature, much less outside it.
    4. Unveiled, aware of the insuperable limitation placed against our looking, we come back to nature’s perfect silence. What we learn from this silence is the unlikeness between nature and whatever we could think or say about it. But this silence has an irony of its own: far from stupefying us, it provides an indispensable condition for the mind’s own originality. By confronting us with radical unlikeness, nature becomes the source of metaphor. Metaphor is the joining of like to unlike such that one can never become the other. Metaphor requires an irreducibility, an imperturbable indifference of its terms for one another. At its root all language has the character of metaphor, because no matter what it intends to be about it remains language, and remains absolutely unlike whatever it is about. The unspeakability of nature is the very possibility of language
      1. A name of something is not that something
    5. We control nature for societal reasons. The control of nature advances with our ability to predict the outcome of natural processes. Inasmuch as predictions are but explanations in reverse, it is possible that they will be quite combative as explanations. Indeed, prediction is the most highly developed skill of the Master Player, for without it control of an opponent is all the more difficult. It follows that our domination of nature is meant to achieve not certain natural outcomes, but certain societal outcomes
    6. Our attempt to control nature masks our desire for power over each other
    7. Just as nature has no outside, it has no inside. It is not divided within itself and cannot therefore be used for or against itself. There is no inherent opposition of the living and the nonliving within nature; neither is more or less natural than the other. This is not an expression of an order so much as it is the display of a perfect indifference on nature’s part to all matters cultural. Nature’s source of movement is always from within itself; indeed it is itself. And it is radically distinct from our own source of movement. That is not to say that, possessing no order, nature is chaotic. It is neither chaotic nor ordered. Chaos and order describe the cultural experience of nature – the degree to which nature’s indifferent spontaneity seems to agree with our current manner of cultural self-control. A hurricane, or a plague, or the overpopulation of the earth will seem chaotic to those whose cultural expectations are damaged by them and orderly to those whose expectations have been confirmed by them.
    8. The paradox in our relation to nature is that the more deeply a culture respects the indifference of nature, the more creatively it will call upon its own spontaneity in response. The more clearly we remind ourselves that we can have no unnatural influence on nature, the more our culture will embody a freedom to embrace surprise and unpredictability. Human freedom is not a freedom over nature; it is the freedom to be natural that is, to answer to the spontaneity of nature with our own spontaneity. Though we are free to be natural, we are not free by nature; we are free by culture, by history. The contradiction in our relation to nature is that the more vigorously we attempt to force its agreement with our own designs the more subject we are to its indifference, the more vulnerable to its unseeing forces. The more power we exercise over natural process the more powerless we become before it. In a matter of months we can cut down a rain forest that took tens of thousands of years to grow, but we are helpless in repulsing the desert that takes its place. And the desert, of course, is no less natural than the forest
      1. Prepared, adaptive, robust, honoring the possibility of black-swans
  9. History
    1. If nature is the realm of the unspeakable, history is the realm of the speakable. Indeed, no speaking is possible that is not itself historical
    2. Since history is the drama of genius, its relentless surprise tempts us into designing boundaries for it, searching through it for patterns of repetition. Historians sometimes speak of trends, of cycles, of currents, of forces, as though they were describing natural events. Historians who understand themselves to be historical abandon explanation altogether. The mode of discourse appropriate to such self-aware history is narrative. Like explanation, narrative is concerned with a sequence of events and brings its tale to a conclusion. However, there is no general law that makes this outcome necessary. In a genuine story there is no law that makes any act necessary. Explanations place all apparent possibilities into the context of the necessary; stories set all necessities into the context of the possible. Explanation can tolerate a degree of chance, but it cannot comprehend freedom at all. We explain nothing when we say that persons do whatever they do because they choose to do it. On the other hand, causation cannot find a place in narrative. We have not told a story when we show that persons do whatever they do because they were caused to do it – by their genes, their social circumstances, or the influence of the gods. Explanations settle issues, showing that matters must end as they have. Narratives raise issues, showing that matters do not end as they must but as they do. Explanations sets the need for further inquiry aside; narrative invites us to rethink what we thought we know. If the silence of nature is the possibility of language, language is the possibility of history
    3. Explanations succeed only by convincing resistant hearers of their error. If you will not hear my explanations until you are suspicious of your own truths, you will not accept my explanations until you are convinced of your error. Explanation is an antagonistic encounter that succeeds by defeating an opponent. It possesses the same dynamic of resentment found in other finite play. I will press my explanations on you because I need to show that I do not live in the error that I think others think I do. Knowledge, therefore, is like property. It must be published, declared, or in some other way so displayed that others cannot but take account of it. So close are knowledge and property that they are often thought to be continuous. Those who are entitled to knowledge feel they should be granted property as well, and those who are entitled to property believe a certain knowledge goes with it. Scholars demand higher salaries for their publishable successes; industrialists sit on university boards.
    4. One is speechless before a god, or silent before a winner, because it no longer matters to others what one has to say. To lose a contest is to become obedient; to become obedient is to lose one’s listeners. The silence of obedience is an unheard silence. It is the silence of death. For this reason the demand for obedience is inherently evil. The silence of nature is the possibility of language. By subduing nature the gods give it their own voice, but in making nature an opponent they make all their listeners opponents. By refusing the silence of nature they demand the silence of obedience. The unspeakability of nature is therefore transformed into the unspeakability of language itself.
    5. Infinite speech is that mode of discourse that consistently reminds us of the unspeakability of nature. It bears no claim to truth, originating from nothing but the genius of the speaker. Infinite speech is therefore not about anything; it is always to someone. It is not command, but address. It belongs entirely to the speakable. Because it is address, attending always on the response of the addressed, infinite speech has the form of listening. Infinite speech does not end in the obedient silence of the hearer but continues by way of the attentive silence of the speaker. It is not a silence into which speech has died, but a silence from which speech is born. Infinite speakers do not give voice to another, but receive it from another. Infinite speakers do not therefore appeal to a world as audience, do not speak before a world, but present themselves as an audience by way of talking with others. Finite speech informs another about the world – for the sake of being heard. Infinite speech forms a world about the other – for the sake of listening. The contradiction of finite speech is that it must end by being heard. The paradox of infinite speech is that it continues only because it is a way of listening. Finite speech ends with a silence of closure. Infinite speech begins with a disclosure of silence.
    6. Historians become infinite speakers when they see that whatever begins in freedom cannot end in necessity
  10. Machine vs. Garden
    1. Machine is used here as an inclusive of technology and as an example of it – as a way of drawing attention to the mechanical rationality of technology. Garden does not refer to the bounded plot at the edge of the house or the margin of the city. This is not a garden one lives beside, but a garden one lives within. It is a place of growth, of maximized spontaneity. To garden is not to engage in a hobby or an amusement; it is to design a culture capable of adjusting the widest possible range of surprise in nature. Gardeners are acutely attentive to the deep patterns of natural order, but are also aware that there will always be much lying beyond their vision. Gardening is a horizonal activity. Machine and garden are not absolutely opposed to each other. Machinery can exist in the garden quite as finite games can be played within an infinite game. The question is not one of restricting machines from the garden but asking whether a machine serves the interest of the garden, or the garden the interest of the machine.
    2. The most elemental difference between the machine and the garden is that one is driven by a force which must be introduced from without, the other grown by an energy which originates from within itself
    3. A plant cannot be designed or constructed. Though we seem to give it “fuel” in the form of rich earth and appropriate nutrients, we depend on the plant to make use of the fuel by way of its own vitality. A machine depends on its designer and its operator both for the supply of fuel and its consumption. A machine has not the merest trace of its own spontaneity or vitality. Vitality cannot be given, only found.
    4. To operate a machine one must operate like a machine. Using a machine to do what we cannot do, we find we must do what the machine does
    5. When we use machines to achieve whatever it is we desire, we cannot have what we desire until we have finished with the machine, until we can rid ourselves of the mechanical means of reaching our intended outcome. The goal of technology is therefore to eliminate itself, to become silent, invisible, carefree. For example, a perfect radio will draw no attention to itself, will make it seem we are in the very presence of the source of its sound. When it is most effective, machinery will have no effect at all
      1. Seeing this play out today with airpods, smart devices, etc. Becoming increasingly and seamlessly integrated into our lives
    6. To be at home everywhere is to neutralize space
    7. If to operate a machine is to operate like a machine, then we not only operate with each other like machines, we operate each other like machines. And if a machine is most effective when it has no effect, then we operate each other in such a way that we reach the outcome desired – in such a way that nothing happens
    8. If indifference to nature leads to the machine, the indifference of nature leads to the garden. All culture has the form of gardening: the encouragement of spontaneity in others by way of one’s own, the respect for source, and the refusal to convert source into resource
    9. Gardening is not outcome-oriented. A successful harvest is not the end of the garden’s existence, but only a phase of it. As any gardener knows, the vitality of a garden does not end with a harvest. It simply takes another form. Gardens do not “die” in the winter but quietly prepare for another season. Gardeners celebrate variety, unlikeness, spontaneity. They understand that an abundance of styles in the interest of vitality. The more complex the organic content of the soil, for example – that is, the more numerous its sources of change – the more vigorous its liveliness. Growth promotes growth. So also in culture. Infinite players understand that the vigor of a culture has to do with the variety of its sources, the differences within itself. The unique and the surprising are not suppressed in some persons for the strength of others. The genius in you stimulates the genius in me. One operates a machine effectively, so that it disappears, giving way to results in which the machine has no part. One gardens creatively, so that all the sources of the garden’s vitality appear in its harvest, giving rise to a continuity which we take an active part.
    10. Inasmuch as gardens do not conclude with a harvest and are not played for a certain outcome, one never arrives anywhere with a garden. A garden is a place where growth is found. It has its own source of change. One does not bring change to a garden, but comes to a garden prepared for change, and therefore prepared to change. It is possible to deal with growth only out of growth. True parents do not see to it that their children grow in a particular way, according to a preferred pattern or scripted stages, but they see to it that they grow with their children. The character of one’s parenting, if it is genuinely dramatic, must be constantly altered from within as the children change from within. So, too, with teaching, or working with, or loving each other. It is in the garden that we discover what travel truly is. We do not journey to a garden but by way of it. Genuine travel has no destination. Travelers do not go somewhere, but constantly discover they are somewhere else. Since gardening is a way not of subduing the indifference of nature but of raising one’s own spontaneity to respond to the desi regarding vagaries and unpredictabilities of nature, we do not look on nature as a sequence of changing scenes but look on ourselves as persons in passage. Nature does not change; it has no inside or outside. It is therefore not possible to travel through it. All travel is therefore change within the traveler, and it is for that reason that travelers are always somewhere else. To travel is to grow. Genuine travelers travel not to overcome distance but to discover distance. It is not distance that makes travel necessary, but travel that makes distance possible. Distance is not determined by the measurable length between objects, but by the actual differences between them. What is truly separate is distinct; it is unlike.
    11. A gardener, whose attention is ever on the spontaneities of nature, acquires the gift of seeing differences, looks always for the merest changes in plant growth, or in the composition of the soil, the emerging populations of insects and earthworms. So will gardeners, as parents, see changes of the smallest subtlety in their children, or as teachers see the signs of increasing skill, and possibly wisdom, in their students
    12. Society regards its waste as an unfortunate, but necessary, consequence of its activities – what is left when we have made essential societal goods available. But waste is not the result of what we have made. It is what we have made. Waste plutonium is not an indirect consequence of the nuclear industry; it is a product of that industry. Waste is unveiling. Because waste is unveiling, it is not only placed out of sight, it is declared a kind of antiproperty. No one owns it and no one wants it. Waste is the antiproperty that becomes the possession of losers. It is the emblem of the untitled.
    13. Since the attempt to control nature is at its heart the attempt to control other persons, we can expect societies to be less patient with those cultures which express some degree of indifference to societal goals and values. It is this repeated parallel that brings us to see that the society that creates natural waste creates human waste. Waste persons are those no longer useful as resources to a society for whatever reason, and have become apatrides, or noncitizens. Waste persons must be placed out of view – in ghettos, slums, reservations, camps, retirement villages, mass graves, remote territories, strategic hamlets – all places of desolation, and uninhabitable.
    14. We see nature as genius when we see genius. We understand nature as source when we understand ourselves as source. We abandon all attempts at an explanation of nature when we see that we cannot be explained, when our own self-origination cannot be stated as fact. We behold the irreducible otherness of nature when we behold ourselves as its other.
    15. For the infinite player, seeing as genius, nature is the absolutely unlike. The infinite player recognizes nothing on the face of nature. Nature displays not only its indifference to human existence but its difference as well. Nature offers no home. The homelessness of nature, its utter indifference to human existence, disclose to the infinite player that nature is the genius of the dramatic.
  11. Myth
    1. Myth provokes explanation but accepts none of it. Where explanation absorbs the unspeakable into the speakable, myth reintroduces the silence that makes original discourse possible
    2. Few discoveries were greater than Copernicus’, for they projected an order onto the heavens that no one has successfully challenged. Many thought then, and some still think, that this great statement of truth dispelled clouds of myth that had kept humankind in retarding darkness. What Copernicus dispelled, however, were not myths but other explanations. Myths lie elsewhere. To see where, we do not look at the facts in Copernicus’ works; we look for the story in his stating them. Knowledge is what successful explanation has led to; the thinking that sent us forth, however, is pure story
    3. That myth does not accept the explanations it provokes we can see in the boldness with which thinkers in any territorial endeavor reexamine the familiar for a higher seeing. Indeed, the very liveliness of a culture is determined not by how frequently these thinkers discover new continents of knowledge but by how frequently they depart to seek them. A culture can be no stronger than its strongest myths.
    4. A story attains the status of myth when it is retold, and persistently retold, solely for its own sake. To tell a story for its own sake is to tell it for no other reason than it is a story. Great stories have this feature: to listen to them and learn them is to become their narrators. Our first response to hearing a story is the desire to tell it ourselves – the greater the story the greater the desire. It is as though the story is itself seeking the occasion for its recurrence, making use of us as its agents.
    5. Great stories cannot be observed, any more than an infinite game can have an audience
    6. Stories that have the enduring strength of myths reach through experience to touch the genius in each of us
    7. As myths make individual experience possible, they also make collective experience possible. Whole civilizations rise from stories – and can rise from nothing else. We come to life at their touch. Myths, told for their own sake, are not stories that have meanings, but stories that give meanings.
    8. We resonate with myth when it resounds in us. A myth resounds in me when its voice is heard in mine but not heard as mine.
    9. Myths of irrepressible resonance have lost all trace of an author. Even when sacred texts are written own by an identifiable prophet or evangelist, it is invariably thought that these words were first spoken to their recorders and not spoken by them. Moses received the law and did not compose it. No myth, therefore, exists by itself; neither does it have a discoverable origin.
    10. Myth is the highest form of us listening to each other, of offering a silence that makes the speech of the other possible. This is why listening is far more valued by religion than speaking. Fides ex auditu. Faith comes by listening, Paul said
    11. The opposite of resonance is amplification. A bell resonates, a cannon amplifies. We listen to the bell, we are silenced by the cannon. When a single voice is sufficiently amplified, it becomes a speaking that makes it impossible for any other voices to be heard. We do not listen to a loudspeaker for what is being said, but only because it is all that is being said. Ideology is the amplification of myth
    12. If it is true that myth provokes explanation, then it is also true that explanation’s ultimate design is to eliminate myth. This is the contradiction of finite play in its highest form: to play in such a way that all need for play is erased
    13. It is not necessary for infinite players to be Christians; indeed it is not possible for them to be Christians – seriously. Neither is it possible for them to be Buddhists, or Muslims, or atheists, or New Yorkers – seriously. All such titles can only be playful abstractions, mere performances for the sake of laughter. Infinite players are not serious actors in any story, but the joyful poets of a story that continues to originate what they cannot finish.
    14. There is but one infinite game.

What I got out of it

  1. So much here to mull over and digest. Serious vs. playful. Play for the sake of ending the game vs. playing for the sake of play. Playing within boundaries vs. playing with boundaries. Contradictory vs. Paradoxical. Machines vs. Gardens. Thoughts on nature, war, genius, myths, and more

My Life and Work by Henry Ford

This teacher’s reference guide is a bit unique in that it was only one book rather than several but I enjoyed it so much and got so much out of it that I wanted to make a more formal write-up. As always, I have attempted to put together something which is (hopefully) a manageable, actionable and digestible introduction to Ford’s thinking and business philosophy.

On Henry Ford

 

*The vast majority of the content is from the books and not my own words. I’ve simply distilled, compiled, and added a few notes.

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

Why Don’t We Learn From History? by BH Liddell Hart

Summary
  1. Hart succinctly and engagingly describes why history is so important to study and, yet, why so few do
Key Takeaways
  1. There is no panacea for peace that can be written out in a formula like a doctor’s prescription. But one can set down a series of practical points—elementary principles drawn from the sum of human experience in all times. Study war and learn from its history. Keep strong, if possible. In any case, keep cool. Have unlimited patience. Never corner an opponent and always assist him to save his face. Put yourself in his shoes—so as to see things through his eyes. Avoid self-righteousness like the devil—nothing is so self-blinding. Cure yourself of two commonly fatal delusions—the idea of victory and the idea that war cannot be limited
  2. I would emphasize a basic value of history to the individual. As Burckhardt said, our deeper hope from experience is that it should “make us, not shrewder (for next time), but wiser (for ever).” History teaches us personal philosophy.
  3. Over two thousand years ago, Polybius, the soundest of ancient historians, began his History with the remark that “the most instructive, indeed the only method of learning to bear with dignity the vicissitude of fortune, is to recall the catastrophes of others.” History is the best help, being a record of how things usually go wrong. A long historical view not only helps us to keep calm in a “time of trouble” but reminds us that there is an end to the longest tunnel. Even if we can see no good hope ahead, an historical interest as to what will happen is a help in carrying on. For a thinking man, it can be the strongest check on a suicidal feeling.
  4. What is the object of history? I would answer, quite simply – “truth.” The object might be more cautiously expressed thus: to find out what happened while trying to find out why it happened. In other words, to seek the causal relations between events. History has limitations as guiding signpost, however, for although it can show us the right direction, it does not give detailed information about the road conditions
    1. NOTE: map is not the terrain
  5. History can show us what to avoid, even if it does not teach us what to do—by showing the most common mistakes that mankind is apt to make and to repeat. A second object lies in the practical value of history. “Fools,” said Bismarck, “say they learn by experience. I prefer to profit by other people’s experience.” The study of history offers that opportunity in the widest possible measure. It is universal experience – infinitely longer, wider, and more varied than any individual’s experience.
  6. The point was well expressed by Polybius. “There are two roads to the reformation for mankind—one through misfortunes of their own, the other through the misfortunes of others; the former is the most unmistakable, the latter the less painful…the knowledge gained from the study of true history is the best of all educations for practical life
  7. Why were they not deduced? Partly because the General Staffs’ study was too narrow, partly because they were blinded by their own professional interests and sentiments. But the “surprising” developments were correctly deduced from those earlier wars by certain non-official students of war who were able to think with detachment
  8. History is the record of man’s steps and slips. It shows us that the steps have been slow and slight; the slips, quick and abounding. It provides us with the opportunity to profit by the stumbles and tumbles of our forerunners. Awareness of our limitations should make us chary of condemning those who made mistakes, but we condemn ourselves if we fail to recognize mistakes
  9. Viewed aright, it is the broadest of studies, embracing every aspect of life. It lays the foundation of education by showing how mankind repeats its errors and what those errors are
  10. In reality, reason has had a greater influence than fortune on the issue of wars that have most influenced history. Creative thought has often counted for more than courage; for more, even, than gifted leadership. It is a romantic habit to ascribe to a flash of inspiration in battle what more truly has been due to seeds long sown—to the previous development of some new military practice by the victors, or to avoidable decay in the military practice of the losers.
  11. Direct experience is inherently too limited to form an adequate foundation either for theory or for application. At the best it produces an atmosphere that is of value in drying and hardening the structure of thought. The greater value of indirect experience lies in its greater variety and extent. “History is universal experience”—the experience not of another but of many others under manifold conditions.
  12. The increasing specialization of history has tended to decrease the intelligibility of history and thus forfeit the benefit to the community
  13. Observing the working of committees of many kinds, I have long come to realize the crucial importance of lunchtime. Two hours or more may have been spent in deliberate discussion and careful weighing of a problem, but the last quarter of an hour often counts for more than all the rest. At 12:45pm there may be no prospect of an agreed solution, yet around about 1pm important decisions may be reached with little argument—because the attention of the members has turned to watching the hands of their watches. Those moving hands can have a remarkable effect in accelerating the movements of minds—to the point of a snap decision. The more influential members of any committee are the most likely to have important lunch engagements, and the more important the committee the more likely is this contingency. A shrewd committeeman often develops a technique based on this time calculation. He will defer his own intervention in the discussion until lunchtime is near, when the majority of the others are more inclined to accept any proposal that sounds good enough to enable them to keep their lunch engagement.
  14. Another danger, among “hermit” historians, is that they often attach too much value to documents. Men in high office are apt to have a keen sense of their own reputation in history. Many documents are written to deceive or conceal. Moreover, the struggles that go on behind the scenes, and largely determine the issue, are rarely recorded in documents.
  15. Lloyd George frequently emphasized to me in conversation that one feature that distinguished a first-rate political leader from a second-rate politician is that the former was always careful to avoid making any definite statement that could be subsequently refuted, as he was likely to be caught out in the long run.
  16. “Hard writing makes easy reading.” Such hard writing makes for hard thinking.
  17. Discernment may be primarily a gift—and a sense of proportion, too. But their development can be assisted by freedom from prejudice, which largely rests with the individual to achieve—and within his power to achieve it. Or at least to approach it. The way of approach is simple, if not easy—requiring, above all, constant self-criticism and care for precise statement.
  18. To view any question subjectively is self-blinding.
  19. Doubt is unnerving save to philosophic minds, and armies are not composed of philosophers, either at the top or at the bottom. In no activity is optimism so necessary to success, for it deals so largely with the unknown—even unto death. The margin that separates optimism from blind folly is narrow. Thus there is no cause for surprise that soldiers have so often overstepped it and become the victims of their faith.
  20. The point had been still more clearly expressed in the eleventh-century teaching of Chang-Tsai: “If you can doubt at points where other people feel no impulse to doubt, then you are making progress.”
  21. We learn too that nothing has aided the persistence of falsehood, and the evils resulting from it, more than the unwillingness of good people to admit the truth when it was disturbing to their comfortable assurance. Always the tendency continues to be shocked by natural comment and to hold certain things too “sacred” to think about.
  22. How rarely does one meet anyone whose first reaction to anything is to ask “Is it true?” Yet unless that is a man’s natural reaction it shows that truth is not uppermost in his mind, and, unless it is, true progress is unlikely.
  23. Yet the longer I watch current events, the more I have come to see how many of our troubles arise from the habit, on all sides, of suppressing or distorting what we know quite well is the truth, out of devotion to a cause, an ambition, or an institution—at bottom, this devotion being inspired by our own interest.
  24. It was saddening to discover how many apparently honorable men would stoop to almost to anything to help their own advancement.
  25. A different habit, with worse effect, was the way that ambitious officers when they came in sight of promotion to the generals’ list, would decide that they would bottle up their thoughts and ideas, as a safety precaution, until they reached the top and could put these ideas into practice. Unfortunately the usual result, after years of such self-repression for the sake of their ambition, was that when the bottle was eventually uncorked the contents had evaporated.
  26. In my experience the troubles of the world largely come from excessive regard to other interests.
  27. We learn from history that those who are disloyal to their own superiors are most prone to preach loyalty to their subordinates.
  28. Loyalty is a noble quality, so long as it is not blind and does not exclude the higher loyalty to truth and decency.
  29. Truth may not be absolute, but it is certain that we are likely to come nearest to it if we search for it in a purely scientific spirit and analyze the facts with a complete detachment from all loyalties save that to truth itself. It implies that one must be ready to discard one’s own pet ideas and theories as the search progresses.
  30. Faith matters so much in times of crisis. One must have gone deep into history before reaching the conviction that truth matters more.
  31. All of us do foolish things—but the wiser realize what they do. The most dangerous error is failure to recognize our own tendency to error. That failure is a common affliction of authority.
  32. The pretense to infallibility is instinctive in a hierarchy. But to understand the cause is not to underrate the harm that the pretense has produced—in every sphere.
  33. Hence the duty of the good citizen who is free from the responsibility of Government is to be a watchdog upon it, lest Government impair the fundamental objects which it exists to serve. It is a necessary evil, thus requiring constant watchfulness and check.
  34. What is of value in “England” and “America” and worth defending is its tradition of freedom—the guarantee of its vitality. Our civilization, like the Greek, has, for all its blundering way, taught the value of freedom, of criticism of authority—and of harmonizing this with order. Anyone who urges a different system, for efficiency’s sake, is betraying the vital tradition.
  35. We learn from history that self-made despotic rulers follow a standard pattern. In gaining power: They exploit, consciously or unconsciously, a state of popular dissatisfaction with the existing regime or of hostility between different sections of the people. On gaining power: They soon begin to rid themselves of their chief helpers, “discovering” that those who brought about the new order have suddenly become traitors to it. This political confidence trick, itself a familiar string of tricks, has been repeated all down the ages. Yet it rarely fails to take in a fresh generation.
  36. We learn from history that time does little to alter the psychology of dictatorship. The effect of power on the mind of the man who possesses it, especially when he has gained it by successful aggression, tends to be remarkably similar in every age and in every country.
  37. Bad means lead to no good end.
  38. But “anti-Fascism” or “anti-Communism” is not enough. Nor is even the defense of freedom. What has been gained may not be maintained, against invasion without and erosion within, if we are content to stand still. The peoples who are partially free as a result of what their forebears achieved in the seventeenth, eighteenth, and nineteenth centuries must continue to spread the gospel of freedom and work for the extension of the conditions, social and economic as well as political, which are essential to make men free.
  39. We learn from history that the compulsory principle always breaks down in practice. It is practicable to prevent men doing something; moreover that principle of restraint, or regulation, is essentially justifiable in so far as its application is needed to check interference with others’ freedom. But it is not, in reality, possible to make men do something without risking more than is gained from the compelled effort. The method may appear practicable, because it often works when applied to those who are merely hesitant. When applied to those who are definitely unwilling it fails, however, because it generates friction and fosters subtle forms of evasion that spoil the effect which is sought. The test of whether a principle works is to be found in the product. Efficiency springs from enthusiasm—because this alone can develop a dynamic impulse. Enthusiasm is incompatible with compulsion—because it is essentially spontaneous. Compulsion is thus bound to deaden enthusiasm—because it dries up the source. The more an individual, or a nation, has been accustomed to freedom, the more deadening will be the effect of a change to compulsion.
  40. Conscription does not fit the conditions of modern warfare—its specialized technical equipment, mobile operations, and fluid situations. Success increasingly depends on individual initiative, which in turn springs from a sense of personal responsibility—these senses are atrophied by compulsion. Moreover, every unwilling man is a germ carrier, spreading infection to an extent altogether disproportionate to the value of the service he is forced to contribute.
  41. Unless the great majority of a people are willing to give their services there is something radically at fault in the state itself. In that case the state is not likely or worthy to survive under test—and compulsion will make no serious difference.
  42. But the deeper I have gone into the study of war and the history of the past century the further I have come toward the conclusion that the development of conscription has damaged the growth of the idea of freedom in the Continental countries and thereby damaged their efficiency also—by undermining the sense of personal responsibility.
    1. NOTE: great parallels to business. Giving away ownership and responsibility gets people all-in, to self-police, to be your best salesman and advocates. Forcing them to try to act this way never works
  43. I believe that freedom is the foundation of efficiency, both national and military. Thus it is a practical folly as well as a spiritual surrender to “go totalitarian” as a result of fighting for existence against the totalitarian states. Cut off the incentive to freely given service and you dry up the life source of a free community.
  44. Reforms that last are those that come naturally, and with less friction, when men’s minds have become ripe for them. A life spent in sowing a few grains of fruitful thought is a life spent more effectively than in hasty action that produces a crop of weeds. That leads us to see the difference, truly a vital difference, between influence and power.
  45. History shows that a main hindrance to real progress is the ever-popular myth of the “great man.” While “greatness” may perhaps be used in a comparative sense, if even then referring more to particular qualities than to the embodied sum, the “great man” is a clay idol whose pedestal has been built up by the natural human desire to look up to someone, but whose form has been carved by men who have not yet outgrown the desire to be regarded, or to picture themselves, as great men.
  46. We learn from history that expediency has rarely proved expedient.
    1. NOTE: John Wooden – be quick but don’t hurry
  47. Civilization is built on the practice of keeping promises. It may not sound a high attainment, but if trust in its observance be shaken the whole structure cracks and sinks. Any constructive effort and all human relations—personal, political, and commercial—depend on being able to depend on promises.
    1. NOTE: like any high performing culture, trust is at the center of it all. Not being able to depend on promises erodes trust
  48. It is immoral to make promises that one cannot in practice fulfill—in the sense that the recipient expects.
  49. I have come to think that accuracy, in the deepest sense, is the basic virtue—the foundation of understanding, supporting the promise of progress. The cause of most troubles can be traced to excess; the failure to check them to deficiency; their prevention lies in moderation. So in the case of troubles that develop from spoken or written communication, their cause can be traced to overstatement, their maintenance to understatement, while their prevention lies in exact statement. It applies to private as well as to public life.
  50. Studying their effect, one is led to see that the germs of war lie within ourselves—not in economics, politics, or religion as such. How can we hope to rid the world of war until we have cured ourselves of the originating causes?
  51. Any history of war which treats only of its strategic and political course is merely a picture of the surface. The personal currents run deeper and may have a deeper influence on the outcome.
  52. We learn from history that complete victory has never been completed by the result that the victors always anticipate—a good and lasting peace. For victory has always sown the seeds of a fresh war, because victory breeds among the vanquished a desire for vindication and vengeance and because victory raises fresh rivals.
    1. NOTE: dialectical materialism
  53. A too complete victory inevitably complicates the problem of making a just and wise peace settlement. Where there is no longer the counterbalance of an opposing force to control the appetites of the victors, there is no check on the conflict of views and interests between the parties to the alliance. The divergence is then apt to become so acute as to turn the comradeship of common danger into the hospitality of mutual dissatisfaction—so that the ally of one war becomes the enemy in the next.
  54. Where the two sides are too evenly matched to offer a reasonable chance of early success to either, the statesman is wise who can learn something from the psychology of strategy. It is an elementary principle of strategy that, if you find your opponent in a strong position costly to force, you should leave him a line of retreat—as the quickest way of loosening his resistance. It should, equally, be a principle of policy, especially in war, to provide your opponent with a ladder by which he can climb down.
  55. War is profitable only if victory is quickly gained. Only an aggressor can hope to gain a quick victory. If he is frustrated, the war is bound to be long, and mutually ruinous, unless it is brought to an end by mutual agreement.
  56. The history of ancient Greece showed that, in a democracy, emotion dominates reason to a greater extent than in any other political system, thus giving freer rein to the passions which sweep a state into war and prevent it getting out—at any point short of the exhaustion and destruction of one or other of the opposing sides.
  57. It was because Wellington really understood war that he became so good at securing peace. He was the least militaristic of soldiers and free from the lust of glory. It was because he saw the value of peace that he became so unbeatable in war. For he kept the end in view, instead of falling in love with the means. Unlike Napoleon, he was not infected by the romance of war, which generates illusions and self-deceptions. That was how Napoleon had failed and Wellington prevailed.
  58. One of the clear lessons that history teaches is that no agreement between Governments has had any stability beyond their recognition that it is in their own interests to continue to adhere to it. I cannot conceive that any serious student of history would be impressed by such a hollow phrase as “the sanctity of treaties.”
  59. We must face the fact that international relations are governed by interests and not by moral principles. Then it can be seen that the validity of treaties depends on mutual convenience. This can provide an effective guarantee.
  60. Any plan for peace is apt to be not only futile but dangerous. Like most planning, unless of a mainly material kind, it breaks down through disregard of human nature. Worse still, the higher the hopes that are built on such a plan, the more likely that their collapse may precipitate war.
  61. For whoever habitually suppresses the truth in the interests of tact will produce a deformity from the womb of his thought.
  62. Opposition to the truth is inevitable, especially if it takes the form of a new idea, but the degree of resistance can be diminished—by giving thought not only to the aim but to the method of approach. Avoid a frontal attack on a long-established position; instead, seek to turn it by a flank movement, so that a more penetrable side is exposed to the thrust of truth. But in any such indirect approach, take care not to diverge from the truth—for nothing is more fatal to its real advancement than to lapse into untruth.
  63. Even among great scholars there is no more unhistorical fallacy than that, in order to command, you must learn to obey.
  64. A model boy rarely goes far, and even when he does he is apt to falter when severely tested. A boy who conforms immaculately to school rules is not likely to grow into a man who will conquer by breaking the stereotyped professional rules of his time—as conquest has most often been achieved. Still less does it imply the development of the wide views necessary in a man who is not merely a troop commander but the strategic adviser of his Government. The wonderful thing about Lee’s generalship is not his legendary genius but the way he rose above his handicaps—handicaps that were internal even more than external.
  65. the deeper the study of modern war is carried the stronger grows the conviction of its futility.
  66. The more that warfare is “formalized” the less damaging it proves. Past efforts in this direction have had more success than is commonly appreciated.
  67. The habit of violence takes much deeper root in irregular warfare than it does in regular warfare. In the latter it is counteracted by the habit of obedience to constituted authority, whereas the former makes a virtue of defying authority and violating rules. It becomes very difficult to rebuild a country, and a stable state, on such an undermined foundation.
  68. Vitality springs from diversity—which makes for real progress so long as there is mutual toleration, based on the recognition that worse may come from an attempt to suppress differences than from acceptance of them.
  69. To put it another way, it seems to me that the spiritual development of humanity as a whole is like a pyramid, or a mountain peak, where all angles of ascent tend to converge the higher they climb. On the one hand this convergent tendency, and the remarkable degree of agreement that is to be found on the higher levels, appears to me the strongest argument from experience that morality is absolute and not merely relative and that religious faith is not a delusion.
  70. Manners are apt to be regarded as a surface polish. That is a superficial view. They arise from an inward control. A fresh realization of their importance is needed in the world today, and their revival might prove the salvation of civilization. For only manners in the deeper sense—of mutual restraint for mutual security—can control the risk that outbursts of temper over political and social issues may lead to mutual destruction in the atomic age.
  71. Truth is a spiral staircase. What looks true on one level may not be true on the next higher level. A complete vision must extend vertically as well as horizontally—not only seeing the parts in relation to one another but embracing the different planes. Ascending the spiral, it can be seen that individual security increases with the growth of society, that local security increases when linked to a wider organization, that national security increases when nationalism decreases and would become much greater if each nation’s claim to sovereignty were merged in a super-national body.
What I got out of it
  1. Not quite Durant’s Lessons of History but one of the best “meta” books on history I’ve come across. The lessons to be gained from in-depth study of history and why it is worth it, and why we don’t

Fallen Leaves: Last Words on Life, Love, War and God by Will Durant

Summary
  1. The personal, distilled wisdom and beliefs of Will Durant on life’s important topics. Answered clearly, simply and imperfectly
Key Takeaways
  1. Man is always steeped in the ways and views of his youth and is almost constantly constitutionally incapable of understanding the changing world that assails him
  2. We love children because they are extensions of ourselves and because they embody unlimited potential. They are what we cannot be – uninhibited, transparently selfish, un hypocritical, spontaneous. Children and fools speak the truth and somehow find happiness in their sincerity. They learn by imitation and teach us what we really are by how they behave
  3. Childhood could be called the age of play and therefore some children are never young and some adults never old. Never give up play as this will speed up aging and lower quality of life.
  4. Every philosopher should also be an athlete. If he is not, let us examine the philosophy
  5. Health lies in action and to be busy is the secret of grace and half the secret of content. Let us ask God not for possessions but for things to do for happiness lies in making things rather than consuming them
  6. The tragedy of life is that it only gives us wisdom once it has stolen youth. If the young but knew how and the old but could
  7. Nothing learned in a book is of any use until it is used and verified in life. It is life which educates
  8. At the same time as children transition to youth and begin examining themselves, they also begin examining the world. They become afraid at learning their species’ true nature – cooperation within the family but competition with society
  9. If youth were wise they would put love above all else and not fall into the trap that so many do of trading it for money, fame or other external recognition. Making all else subordinate to it until the end. How can it matter what price we pay for love
  10. Life seems brutal because we think we are individuals when in fact we are temporary organs of the species. The individual fails but life succeeds
  11. Logic is an invention of man and may be ignored by the universe
  12. Only one thing is certain in history, decade. Only one thing is certain in life, death
  13. Death, like style, is the removal of the superfluous
  14. One recounting of history may be recounted by the avatars of God. The replacing of one deity for another by an overtaking tribe is seen time and again and a list of the changing gods would make quite a directory for the changing of the guard
  15. Heaven and hell are not located in another world, they are simply states of mind
  16. Religions are not made by the intellect or else they would never touch the soul, reach the masses or have any longevity. The imagination must be moved and inspire courage, compassion and moral development
  17. It can be argued that morality and civilization are one. Durant defines morality as the consistency of private conduct with public interest as understood by the group
  18. Moral self-restraint is one of the surest guarantees to advancement and self-fulfillment
  19. We must respect differing opinions. Intolerance is the door to violence, brutality and dictatorship and the realization of human interdependence and solidarity is the best protection of civilization.
  20. Women generally acquire by instinct all that men acquire by intellect
  21. “I admire the architecture of woman…Her movement is poetry become flesh.”
  22. The art which has most obviously and visibly made progress over the last thousand years is the art of war
  23. The state is the soul of man enlarged under the microscope of history
  24. Greed and wealth originally arose as a hedge against starvation but later became vices as abundance and social norms no longer made them necessary for survival
  25. Prejudice is deadly to religion but vital to civilization
  26. The first law of government is self preservation, the second is self extension
  27. Peace is war by other means
  28. Humankind has waited for centuries for a cease to war through a raising of consciousness but there is no broad, humankind consciousness
  29. Character – a rational harmony and hierarchy of desires in coordination with capacity
  30. Wisdom – an application of experience to present problems
  31. Education is the perfection of life and there should be 3 tenets on which to base education and its goals:
    1. The control of life through health, character, intelligence and technology
    2. The enjoyment of life through friendship, literature, nature and art
    3. The understanding of life through history, science, religion and philosophy
  32. There is nothing Epicurean about desiring a healthy and strong body as this allows us the possibility for a happy and long life and to pursue our goals. He would have dietitians teach students an hour per day on the basics and benefits of a healthy diet and exercise
  33. The point of education is not to create scholars but to form people
  34. There is a big difference between intellect and intelligence. Intellect is the capacity for acquiring and using ideas. Intelligence is the ability to use experience, even the experience of other’s, for the clarification and attainment of one’s ends. Intelligence is garnered from experience, action, reading
  35. An intimate knowledge and experience with nature and sports should not be undervalued
  36. Learning language and culture is most natural and easiest when living and immersing yourself in it
  37. Psychology is a theory of human behavior. Philosophy is too often an ideal of human behavior. History is occasionally a record of human behavior
  38. No man is fit to lead if he cannot see his time in perspective of history
  39. Travel, if too varied and hurried, makes the mind superficial and can confirm stereotypes
  40. Much of history is bunk. However, there is an alternate view to history. History is man’s rise from savagery to civilization. History is the record of the lasting contributions made to man’s knowledge, wisdom, arts, morals, manners, skills. History is a laboratory rich in a hundred thousand experiments in economics, religion, literature, science and government. History is our roots and our illumination as the road by which we came and the only light that can clarify our present and future. This history is not bunk and can even be considered the only true philosophy and the only true psychology
  41. The present is merely the past rolled up and concentrated into this moment of time
  42. We are choked with news and starved of history
  43. History is philosophy teaching by example
  44. A constant lesson from history is that revolutionists soon come to act like the men they overthrew
  45. You cannot make men equal simply by passing laws
What I got out of it
  1. At times a bit outdated, patronizing and patriarchal but chock full of wisdom and worth reading and re-reading

Chapters in My Life by Frederick Taylor Gates

Summary
  1. Frederick Taylor Gates, the senior business and philanthropic advisor to John D. Rockefeller, recounts his life story and interaction with JDR
Key Takeaways
  1. Gates grew up in a relatively poor household but his parents were hard working and were never for want. Gates became a Baptist minister after graduating from Rochester and practiced for about a decade. He came into contact with JDR during his fundraising process for a Baptist university in Chicago. JDR was impressed enough with his acumen and common sense that he brought him on board, eventually to become senior business advisor for JDR’s business and philanthropic decisions
    1. While preaching in Minnesota, Mr. Pillsbury approached Gates on how to handle his will and was taken in by the suggestion that he required Gates to take a year off from being a pastor to spread the message of the importance of Baptist advancement in the state
    2. Joined the Executive Board of the American Baptist Education Society and was central in communicating with Rockefeller on the importance of establishing a great Baptist university in central Chicago, what would later become the University of Chicago. Gates was named by Rockefeller to be one of the Trustees for the University of Chicago which he helped fund-raise for and then help lead.
    3. Dr. Harper was the University of Chicago’s first president and had ambitious plans for the University. His expansion and spending put him at odds occasionally with Mr. Rockefeller but his vision helped make UChicago the incredible institution it is today
    4. Gates soon after moved to New York to help with Rockefeller’s other benevolences and it was at this point that he turned away from the ministry. Gates helped to direct Rockefeller’s fund and then lead and manage these companies, trusts or philanthropic organizations. Gates steered Rockefeller’s donations towards the principles of scientific giving and eventually laying aside retail giving to individuals and local charities and fully entering wholesale philanthropy to approved public agencies. Gates had little business experience but Rockefeller trusted that he would learn and put him in that position because Gates had a “great store of common sense.” Gates responds by saying that, “his excuse is valid in its implication that common sense diligently applied is usually the best possible solvent of difficult business problems. Gates helped Rockefeller sell out of many poor investments which a “syndicate” of old friends and acquaintances had looped Rockefeller into but ended up being reckless
      1. In his study of one of Rockefeller’s mining investments in Colorado – “My self-distrust proved my salvation. I would not rely at all on any examination of mine. If these consolidated gold properties were what they were represented to be, they would be well known. They ought to be well known throughout Colorado. There must be men in Denver itself who knew of them. I could and would find out what experienced and reliable men in Colorado knew of these mines.” He would come to find that Rockefeller’s investment was in a complete fraud with no gold by conversing with these fluent miners and engineers
      2. This was too much for Rockefeller and it was then JDR invited Gates to be the independent agent in charge of both his philanthropic and personal investing decisions
  2. On Children & Parenting
    1. Never underestimate the impression something can have on a young child – the years of early childhood usually fix the character and destiny of the man
    2. It is a mistake to think children need to be harshly rebuked. To raise gentlemen and women, one must treat them in childhood with courtesy
    3. The parent can force an apparent but wholly deceptive victory by fear, for no victory is complete that does not carry the child’s reason, and conscience, the victory of intelligent voluntary repentance
    4. Children should be taught to pray for what they crave and always in their own words or else the prayer rings hollow. Spent his entire adult life trying to erase his early religious training as he found it painful and stamped out his natural desire to do good. It is ideals lovingly cherished, not terrors, that educate the conscience and create character
    5. My parents talked over all their troubles with entire freedom in the presence of their children. I know no better way than free discussion in the presence of the children of the daily problems of the family, including its relations with others, if children are to be trained in such worldly wisdom as their parents have, and in the practical conduct of life
    6. I find that praise and encouragement work wonders and it gets students much more interested and self motivated
    7. My mother told me to do everything I was told to do, be it high or low; shrink from no duty however difficult or distasteful, and do it, said she, just as well as you can. Do it better than others. Though you may not have as much talent as some, your labor in this way will always be in demand
    8. Beyond mere physical protection of the very little children, we sought to train our children to govern themselves. We tried to make love only the atmosphere of our home. in this spirit it was not necessary to treat them as underlings , but as friends. We advised, persuaded, encouraged, commended, rewarded them, but we sought never to command or forbid. The last word of all counsel was: such is our advice and our wish, but make your own decision; do as you think best. More often than not they begged us to make the decision for them, for they found it easier to be governed than to govern themselves. But self-control can be attained only by the habitual practice of it
    9. We did not spare expense at any point, because we thought that the taste for good music would be worth more – far more – to our children in later life than the inheritance of the money it cost
    10. The mind of the child grows not by absorbing the contents of books, but by intense, spontaneous, self-directed, mental action, just as the body of the child grows by intense, spontaneous, self-directed physical action in his plays. The mind and body are inseparable. They share a common life. We supplemented the schools with twice as much self-directed work and play outside the school hours. We made it a rule to provide at home all the tools, and all the chemical, physical and electrical equipment, apparatus, and material that our children wanted…We had given a minor place only to the study of books but had kept our children busy sixteen hours per day in self-chosen, spontaneous activity, as intense as possible and furnished with all needed facilities and tools
  3. On Business & Philanthropy
    1. Every step a man takes in capacity to work, and to do better work will bring him into a higher plane – a plane in which there will be fewer competitors, greater demand and higher rewards
    2. I knew of course that no man becomes fitted for a new position of importance and responsibility, except by months or years. Of experience in the position itself and that in the process of becoming fitted there must be errors, embarrassments and chagrins
    3. Worked for a Mr. Smith who was Scrooge-like but Gates stood up for what he believed was right and earned this man’s trust. He learned the basics of banking and bookkeeping which would serve him well later in life
    4. You need to be educated enough so that you can bring your ideas down to the point that common people can understand them
    5. No man ever made such advancement in culture who did not early in life learn to save the minutes. Benjamin Franklin said “Time is Money.” To you time is more than money. It is mental culture; it is reputation. It is power over men; it is success.
    6. Doing much in a little time, the impression is apt to wear away. Don’t hurry, take time
    7. On fund raising – never tried to increase the subscription or even to get the last cent possible. We aimed to leave friends behind us, not enemies. It was up to them how much to donate and our job was to be grateful whether the donation was large or small
    8. Medicine had become full of charlatans and had fallen behind many other sciences because it was not endowed at colleges and universities and the research had been left to itself and dependent on individual innovation. It became clear to Gates that medicine could not become a true science until medicine was endowed and qualified men were able to give themselves uninterrupted to the study and investigation of medical research. This was where Gates had an immense influence on Rockefeller. “This idea took possession of me. The more I thought of it, the more interested I became. I knew nothing of the cost of research; I did not realize its enormous difficulty; the only thing I saw was the overwhelming need and infinite promise, world-wide, universal, eternal.
    9. On the Rockefeller Institute – The work of the Institute is as universal in its scope as the love of God. Other philanthropies are limited in their scope to individuals, to communities, to classes, to religions, to states, to countries, to nations. This philanthropy alone is as wide as the race. It knows no boundaries at all. Disease is universal and this is a healing ministration, to prevent or destroy disease…It goes to the fountains of life itself. It deals with what is innermost in every man. For what is health? Health is happiness; mere health itself is happiness…And while we think of the universality of its scope and its elemental character, let us remember its permanency. The work is not for today alone, but forever; not for this generation, but for every generation of humanity that shall come after us. Thus every success is multiplied by infinity
      1. The Institute soon became a “benevolent black hole” for world philanthropies and received appeals daily from every sort of agency of human progress and well-being the world over
    10. Gates was also responsible for pushing Rockefeller to give outside his Baptist denomination and outside his own country, to all worth religions and humanitarian agencies everywhere
    11. Gates became worried about the ever increasing fortune of the Rockefeller’s and the potential social demoralization it could bring to descendants. So, he spoke to JDR and JDR Jr. about setting up great corporate philanthropies for forwarding civilization in all its elements in this land and all lands, limitless in time and amount, broad in scope and self-perpetuating. “I knew very well that Mr. Rockefeller’s mind would not work on mere abstract theories. He required concrete practical suggestions, and I set about framing them.” Suggested endowments to focus on higher education, medical research, fine arts, scientific agriculture, promotion of Christian ethics, promotion of intelligent citizenship and civic virtue and more
    12. Rockefeller divorced himself from the philanthropic decisions in order to eliminate his biases and hopefully put the money to the best uses possible. “His satisfaction springs from deeper and more durable sources than human gratitude…His joy is the joy of achievement. He is after the end. He cannot sacrifice the end to the instrument, even when the instrument is himself.”
    13. Gates thought that some of the best and most important work of the whole foundation was through the Sanitary Commission which initially was set up to help eradicate hookworms from the South and eventually the rest of the temperate regions of the world
    14. It was not Mr. Rockefeller’s way to give words of praise to any of his subordinates. To others he sometimes spoke approvingly of me and of my work, and his words would reach me by round about channels. But to my face he never commended me…But just as I never consciously worked for salary, wealth, or position, so I worked not to secure but to deserve Mr. Rockefeller’s approval.
    15. JDR was never a “bull” or a “bear.” He always followed the market, and never directed it. In every one of our great panics he did everything possible to sustain prices and was always a heavy loser in them. His optimism was incurable, and when panics were on and the credit of banks and individuals exhausted, he unlocked his vaults and loaned his securities without limit to banks and stressed debtors
    16. Gates “combines business skill and philanthropic aptitude to a higher degree than any other man I have ever known.”
    17. Gates was the right man for the job because he believed deeply and irrevocably in the perfectibility of man and especially in the advancement of knowledge as the best means for reaching perfection
    18. Both Rockefeller and Gates agreed on the importance of finding the best men available and leaving them free to do the job in their own way
    19. As stated become more and more preoccupied with equality and uniformity, pluralism and excellence may increasingly become the responsibility of the private sector
  4. Other
    1. Never enjoyed or profited from school but he did come to find his love for natural wood and music in school. The art of teaching consists in following nature’s ways by study of the child
    2. One cannot afford to read a book that is not with buying. Read with pen or pencil in hand and read only useful books
    3. A man’s temptations lie mainly in the realm of his powers
    4. Genius is tempted to be original at the expense of truth
    5. Avoid friction. There is such a thing as moral and intellectual friction. Fretting, worry, envy, jealousy, disputes, quarrels – these are all in the nature of friction. Avoid them as so much waste. Make all your power tell, and waste as little as possible
    6. Avoid the habit of omniscience. Take suggestions. Take criticism. The man who is always right is either omniscient or a fool.
    7. The fact is I know less about the Bible today than I did 30 years ago. I thought I knew something about it then but I have learned that I knew very little about it
    8. The idolatry of general concepts – people bow down and worship general concepts such as church, nation, state, democracy. Pick these words apart, gentlemen, and find out what is in them
    9. I believe that the love and good-will exemplified in the Spirit of Jesus are the secret of human well-being and that in this Spirit lies the hope of the race
    10. None of the precious things in life can be bought with money and money, past a certain point, was more a burden than a gain
    11. Mr. Rockefeller’s habitual policy had been total silence under accusation
    12. Humanity, as I said, must always live with Nature, with her forces and their reactions on mankind. For what is human progress? Ultimately it is this, just this, and nothing else – an ever closer approach to the facts, the laws, the forces of Nature, considered of course in its largest meaning. Nothing else is progress and nothing else will prove to be permanent among men
What I got out of it
  1. Amazing wisdom – not only about business and philanthropic savvy, but on how to raise children, deal with people and lead a happy, fulfilling and successful life