[User] Please transcribe this text

[Assistant] Now if we go ahead and rerun our website, go back to our website and


[User] Please transcribe this text

[Assistant] Instead of a placeholder text. So let's go ahead and change the title.


[User] Please transcribe this text

[Assistant] And there we have it. We're now serving up this beautiful website, which we got


[User] Please transcribe this text

[Assistant] Completely from a template that somebody else has developed.


[User] Please transcribe this text

[Assistant] And all we needed to do was to have enough understanding of HML CSS and how Python servers work in order to customize it for our own purposes.


[User] Please transcribe this text

[Assistant] I hope you enjoyed building this with me and I hope you'll look through some of the other templates and start messing around with some of them to create your own custom websites.


[User] Please transcribe this text

[Assistant] So now that we've seen some of the things that we can do with templating in Jinja, I want to talk to you about something called URL building.


[User] Please transcribe this text

[Assistant] And this is a way that allows us to direct the user to a specific page in our website and web app.


[User] Please transcribe this text

[Assistant] Now what that means is that, for example, on our main homepage, we could actually have a link to the blogs page.


[User] Please transcribe this text

[Assistant] The way that we would do that is in our index.html here.


[User] Please transcribe this text

[Assistant] We could create a anchor tag, for example, in the body here. And we could say, go to blog.


[User] Please transcribe this text

[Assistant] And then for the href of this anchor tag, this is where we're going to use the ginger template to build out the href.


[User] Please transcribe this text

[Assistant] So we're going to add the curly braces in and dynamically work out the h ref.


[User] Please transcribe this text

[Assistant] And in every ginger template, we have access to a method called URLFor.


[User] Please transcribe this text

[Assistant] So we can say URL for, and then because this is Python, we can add some parameters when we call this method.


[User] Please transcribe this text

[Assistant] And what it's expecting is the name of a function in your Flask server. So you could, for example, hit up home or guess or blog.


[User] Please transcribe this text

[Assistant] And in our case, this blog is what we want. So to make it a little bit more clear because we've got the route, which is called forward slash blog, and we've got the function, which is called blog. I'm going to change this to get blog. So want to render this.


[User] Please transcribe this text

[Assistant] By saying url4 and then passing a string. So because we've got some.


[User] Please transcribe this text

[Assistant] Quotation marks around the outside. We're going to use some single quotes on the inside.


[User] Please transcribe this text

[Assistant] And in between the single quotes is the name of that method. GetBlog. Like this.


[User] Please transcribe this text

[Assistant] Now what it's going to do is it's going to generate a hyperlink that's going to be based on what it takes to get to this particular route and call this particular method.


[User] Please transcribe this text

[Assistant] So now if I go ahead and update this and go to my homepage here, you'll see there's a new link that says go to blog.


[User] Please transcribe this text

[Assistant] And when I click on it, it takes me to the blog page.


[User] Please transcribe this text

[Assistant] Now another thing that you might want to do is when you navigate to a URL inside your web app, you might want to add in some parameters.


[User] Please transcribe this text

[Assistant] You can add parameters when you're using URL4 in the same way that you did it when you did render templates. So you can create the name of the parameter and the value. And it's a keyword argument that comes after the first parameter.


[User] Please transcribe this text

[Assistant] So here we could say, for example, URL for get blog.


[User] Please transcribe this text

[Assistant] And then we could just say a number equals three.


[User] Please transcribe this text

[Assistant] So now when the user clicks on this anchor tag, it's going to look for a method called getBlog on our server.py, which is right here. And then it's going to pass over any subsequent keyword arguments as parameters.


[User] Please transcribe this text

[Assistant] So we can catch those parameters inside the app route. So we can say forward slash and then we can use our angle brackets, which we've always done to give parts of the URL a identifier. And we can call this num or number or whatever you like. And we'll also need to add that.


[User] Please transcribe this text

[Assistant] And if we go back to our homepage and I click on go to blog, then it goes to the blog website and it inserts that three into that part of the URL.


[User] Please transcribe this text

[Assistant] And if I take a look in the console, you can see it printed out that number.


[User] Please transcribe this text

[Assistant] Which got passed all the way from the index.html to the server. And finally inside this method, it was caught and it could be printed.


[User] Please transcribe this text

[Assistant] And it could also be further propagated into another template if need be.


[User] Please transcribe this text

[Assistant] So now that we've done all the theory in the next lesson, it's time to tackle the final project. And we're going to be building out our blog website with styling and also with templating. So for all of that and more, head over to the next lesson.


[User] Please transcribe this text

[Assistant] Uh, welcome. This is, this is the first time we've run this class and we've talked about it for some time. We're very excited about doing this because


[User] Please transcribe this text

[Assistant] Uhm, when we looked at our skill, what we're teaching you all as entrepreneurs, we talk a lot about, you know, the skills that you need to learn.


[User] Please transcribe this text

[Assistant] How do you do product development? How do you do iterative product development? How do you build a business plan?


[User] Please transcribe this text

[Assistant] You know, you all are going to be leaders of the organization. What does that mean? What are the skills that you must have?


[User] Please transcribe this text

[Assistant] What can we teach you about that? And these things are very, very important as you go through it. How do you evolve yourself?


[User] Please transcribe this text

[Assistant] Now you're going to be going through school here and then you're going to go back and you're going to go to a, uh, a startup if you do.


[User] Please transcribe this text

[Assistant] All of a sudden you're gonna go back and be doing a whole bunch of different things.


[User] Please transcribe this text

[Assistant] And then over time, how is your job going to change? And I want to talk to you about that. And uhm, so in the class today, it's gonna go this morning and this afternoon, there's going to be four people involved with it. Uhm, Matt Marks,


[User] Please transcribe this text

[Assistant] Who's a professor here who many of you know is studying with. Innovators Dilemmas. Is that the name of the course, Matt?


[User] Please transcribe this text

[Assistant] Dilemmas in founding new ventures. And those of you who haven't, have any of you taken the class?


[User] Please transcribe this text

[Assistant] How do I determine different people's roles? What should my role be?


[User] Please transcribe this text

[Assistant] And we're going to kind of build off that now and say, as you do that,


[User] Please transcribe this text

[Assistant] You've already done that, but now how do you lead an organization?


[User] Please transcribe this text

[Assistant] Especially, it was specifically an entrepreneurial organization. So that's Matt Marks. His experience, he's been in three startups. He's a PhD from, uh, Harvard and studied these issues. Go ahead, Matt. Give your background.


[User] Please transcribe this text

[Assistant] So uhm, I would say that we've been talking with Ed Schein about doing this for a while. Ed Schein is a professor emeritus here.


[User] Please transcribe this text

[Assistant] And he is literally the person who wrote the book on corporate culture.


[User] Please transcribe this text

[Assistant] So we're very, very happy to have him here and we've had a lot of discussions about thinking about this specific area.


[User] Please transcribe this text

[Assistant] And hopefully you all got the paper, you did get the paper, and you had a chance to read it. If not, please read it at lunch, so when you come back, you'll get the most out of the afternoon. Uhm, in the mens a manus approach,


[User] Please transcribe this text

[Assistant] We also have Fiona Murray who is studying this and she's the Associate Director of the Entrepreneurship Center, essentially the Faculty Director of the Entrepreneurship Center.


[User] Please transcribe this text

[Assistant] And who I work very closely with. And she's very interested in this area, especially relative to women. We're doing a lot of work in how do you make women


[User] Please transcribe this text

[Assistant] Uhm, entrepreneurs and how do you make them more successful entrepreneurs? So it's very good to see a lot of women here today.


[User] Please transcribe this text

[Assistant] My background is I am on the monist side, the practicing side.


[User] Please transcribe this text

[Assistant] I sat in your seats for, uh, 1994. That was a long time ago.


[User] Please transcribe this text

[Assistant] Uhm, and after I'd been at IBM for 11 years, and at IBM I was taught management skills, and we're going to talk about that as well as how do you balance off management leadership.


[User] Please transcribe this text

[Assistant] And that was a terrific opportunity to me at a very entrepreneurial time.


[User] Please transcribe this text

[Assistant] When I came back here, I started my first company, which is called Cambridge Decision Dynamics, which is based on system dynamics, and I frankly made a lot of mistakes.


[User] Please transcribe this text

[Assistant] And that was good because I learned a lot from that. It wasn't good at the time at all. It actually was quite bad.


[User] Please transcribe this text

[Assistant] Uh, but it was good in hindsight. And then after that, I started another company, uhm, with someone who was here and already had a device company. We changed it to a Sensible Technologies, which was a more holistic company.


[User] Please transcribe this text

[Assistant] And I applied the lessons I'd learned at IBM and Cambridge Decision Dynamics.


[User] Please transcribe this text

[Assistant] And this was much, much more successful, and that really had a very good ride there.


[User] Please transcribe this text

[Assistant] And then after that, I went to a company called Visage, which was already existing company, and did a turnaround that, but used the same lessons I'd learned in entrepreneurial leadership.


[User] Please transcribe this text

[Assistant] And that was very, very useful for me. And so I got to see them in action and since then I sit on the board of a number of companies.


[User] Please transcribe this text

[Assistant] And uhm, help people through these issues and go around the world and do workshops like this.


[User] Please transcribe this text

[Assistant] What I want to talk about now is what makes, uh, what makes entrepreneurship different? What are we going to cover today that's going to make this useful and interesting for you? So, uhm, entrepreneurial leaders have


[User] Please transcribe this text

[Assistant] Challenges that are similar when you go to a large company or a medium sized company or a government.


[User] Please transcribe this text

[Assistant] But they also have ones that are much different. So what you learn at the leadership center in Deb, Deb Ann Cona's classes, who we've talked a lot about this as well, those lessons still apply. You have to think about that, but some of them are going to be fundamentally different. The emphasis is going to be on different parts of it.


[User] Please transcribe this text

[Assistant] So, we're going to identify those differences, we're going to discuss them, we're going to talk about some of the solutions, and then we're going to give you both frameworks to look at it and tactics as we go through it. So, we've talked about the different people, uhm, I'd really encourage you, uh, to, if you get a chance to, to, uh, ask questions this afternoon of Ed Shine.


[User] Please transcribe this text

[Assistant] Uhm, there's a lot of people. He has a new book out. He is literally the expert in the field. If you had to pick one person, he would be that. He's a professor emeritus, uhm, here.


[User] Please transcribe this text

[Assistant] And he's, uh, we'd love to have him around here. And if you ask a lot of questions, it will encourage him to come back.


[User] Please transcribe this text

[Assistant] Uhm, I see four major differences from just a practitioner standpoint in looking at this. What makes it different when I was at IBM and what they were teaching me relative to what I did when I was running startup companies? The first one is,


[User] Please transcribe this text

[Assistant] In essence, when you start a company, when you're an entrepreneurial venture, you don't have, it's a faith-based cult.


[User] Please transcribe this text

[Assistant] And, and Matt said cult, that's part of culture, isn't it Bill? Uhm, not really. In some sense it is, but not really.


[User] Please transcribe this text

[Assistant] The reason people are joining the organization is because of you. You have this vision, you have this, uhm, it's not because you have a revenue stream. They're not coming in because you have a strong balance sheet.


[User] Please transcribe this text

[Assistant] Because your earnings projections look good. Because you've got this big install base.


[User] Please transcribe this text

[Assistant] They're joining your company. They're going to join Kira's company because they believe that what she's doing is going to be very, very interesting in the future. And they believe that she is the one that can get them there. And if you think about that for a second,


[User] Please transcribe this text

[Assistant] That's how cults start. That's how religions get started. So,


[User] Please transcribe this text

[Assistant] There's somewhat of an analogy here when you think about that. This is not always a rational decision that can be based on existing facts as much as you want to do it. There is an element of passion that needs to be, faith that needs to be, uh, uh, cultivated.


[User] Please transcribe this text

[Assistant] You also lack in a startup company many of the levers that you have in larger companies. I can give you a bigger salary increase. I can give you a better office. I can give you perks. I can give you recognition.


[User] Please transcribe this text

[Assistant] You know, in these different areas, I can give you a career path promotion, uhm, these types of things. When you're in a startup, you don't have a lot of money, and you don't have a lot of time.


[User] Please transcribe this text

[Assistant] So, you have got, you have got to think of other ways that you can motivate people and keep them going. So.


[User] Please transcribe this text

[Assistant] Uhm, you also don't have a lot of legacy of, geez, our good brand name you can rub off on you because you worked at IBM, because you worked at Google, you'll be able to go elsewhere.


[User] Please transcribe this text

[Assistant] That doesn't quite work that way. You wanna create that, but it doesn't work that way to start with.


[User] Please transcribe this text

[Assistant] The pace of evolution is very, very rapid. When you are in a large company,


[User] Please transcribe this text

[Assistant] Decisions don't need to be made as quickly as they do in a small company. You have more of a buffer. When you're in a small company, decisions need to be made quickly. You don't have a lot of time.


[User] Please transcribe this text

[Assistant] And the interesting thing when I thought about this, you know, since I got out of it and I realized what made me successful, what made me unsuccessful at times, it was, was I mixing management and leadership in the right doses?


[User] Please transcribe this text

[Assistant] And by the way, the mix between those that you have to change.


[User] Please transcribe this text

[Assistant] From literally one meeting to the next being in heavy management mode to that meeting's over and now we're in leadership mode.


[User] Please transcribe this text

[Assistant] Literally, like 30 seconds later, and you just have to change like that.


[User] Please transcribe this text

[Assistant] So it's the intensity, the time compression, the stakes of the game are much, much higher. So in this class, what we want to do is have you understand those differences.


[User] Please transcribe this text

[Assistant] In a more visceral level, I just explained them and when we go back at the end of the day, I'd like you to understand those differences and what they really mean.


[User] Please transcribe this text

[Assistant] Secondly, we'd like to give you some framework and tactics.


[User] Please transcribe this text

[Assistant] To think about this, to start to make progress, to start to see, okay, this could work, this could work. But lastly, we want you to understand and appreciation of the value of this topic.


[User] Please transcribe this text

[Assistant] We'd like you to come back here and be talking to us, you know, three, five years from now about


[User] Please transcribe this text

[Assistant] How, what lessons you learned in your company to be a better leader. You know, that's something that would be extremely interesting for us.


[User] Please transcribe this text

[Assistant] Uhm, I think it would be good for you. This is not something where you're going to leave here today and you've already, now you, you understand, you know,


[User] Please transcribe this text

[Assistant] Black shoals, how to price options. That's not what this is. This is an ongoing process to understand how do you become a better leader and we would like you to have the appreciation, the importance of that and then start contributing back to the community on that. Especially Matt, myself, Fiona and Ed.


[User] Please transcribe this text

[Assistant] So that's, that's the, that's the objectives of what we're trying to do today. Do you all have the right class?


[User] Please transcribe this text

[Assistant] It, it, it, it, it will, it, I would like to make it as interactive as possible.


[User] Please transcribe this text

[Assistant] But much like some of you were at the sip we did on Tuesday, uhm,


[User] Please transcribe this text

[Assistant] I'm gonna try to cover about two days worth of stuff here this morning. But you all are Sloan people, so you're used to that.


[User] Please transcribe this text

[Assistant] Okay, so, let's first talk, I wanna talk first about


[User] Please transcribe this text

[Assistant] What, what I, what I said, the last on that list, but the no more. Yes. Very.


[User] Please transcribe this text

[Assistant] Yes. And I can get them to you electronically or would you like them printed out today?


[User] Please transcribe this text

[Assistant] Alright, so I'll get about ten of them printed out at the break, and then we will, uhm, then I will have them available to you electronically. Mike, are you the T, are you the IA? You're not a TA.


[User] Please transcribe this text

[Assistant] So I'll get you, I'll get you the files and then you can figure out how to distribute them. I would love to do that. The one thing I would say


[User] Please transcribe this text

[Assistant] Is if you have comments I would like to hear them back and actually maybe we should set it up on the website so you can put up the comments so other people can see them as well.


[User] Please transcribe this text

[Assistant] So let's talk about the number one, you know, the first challenge, and it's not necessarily the number one, but I'm, I'm saying sequentially I'd like to address this first. The difference between management and leadership.


[User] Please transcribe this text

[Assistant] What is it, uhm, what is the difference between management and leadership?


[User] Please transcribe this text

[Assistant] Have you, have you been trained in management or leadership or both?


[User] Please transcribe this text

[Assistant] Okay, so let me just say, I'm gonna come back at the end of this and I want, and I want you to be able to answer that question whether it matters and why it matters, okay? That's, that's where we're going with this. That's the, so what about this, this whole, whole thing? Well, which one's more important? Gagana. I mispronounced it again. How do I pronounce it?


[User] Please transcribe this text

[Assistant] If I ask questions that aren't the right questions, you are perfectly willing, you're perfectly able to say, I don't think that's the right question. That's what Terry was saying.


[User] Please transcribe this text

[Assistant] That is a bit of a trick question. I'm saying, which is more important? To go to your point, Jeffrey, you absolutely need both.


[User] Please transcribe this text

[Assistant] This is like saying who's more important, the offense or defense in football or basketball. You absolutely need both.


[User] Please transcribe this text

[Assistant] And the question is, what is the situation and what is the mix in which you need it at what time?


[User] Please transcribe this text

[Assistant] So, I wanna go through right now, and, and, and my goal here in this is


[User] Please transcribe this text

[Assistant] Excellent. So you have seen this and this will be perfect for you because this is kind of what I built this for.


[User] Please transcribe this text

[Assistant] What works and what doesn't work and why would it, in hindsight, would have worked better? Alright, what is management, what is leadership, which is more important? So,


[User] Please transcribe this text

[Assistant] If, if leadership is to create people who follow you. If you're a leader, you're creating people who follow you, right? That's leadership. Getting people to follow you, right? And you are mobilizing people in this sense


[User] Please transcribe this text

[Assistant] I don't know that I like this. I'm gonna cross this out because this could be misinterpreted.


[User] Please transcribe this text

[Assistant] Terry, once you explained it, I understood it, but I'm going to cross that out because I don't, I believe that here you're dealing with rationality and here you're dealing with more with faith and passion. There's a saying that you can


[User] Please transcribe this text

[Assistant] Uhm, you can convince someone with rationality.


[User] Please transcribe this text

[Assistant] But you cannot create passion, you know, to lead people you need to create passion.


[User] Please transcribe this text

[Assistant] So, it's a process that mobilizes people to go to do a task that they would not necessarily potentially have done otherwise.


[User] Please transcribe this text

[Assistant] It is misinterpreted times as people who are in leadership positions. This is the leadership group for a company, okay.


[User] Please transcribe this text

[Assistant] May be what some people need. What I'm talking about is the capability, the function of leadership.


[User] Please transcribe this text

[Assistant] Just because someone says they're part of the leadership team, that does not mean that they are, that they are...


[User] Please transcribe this text

[Assistant] Uhm, performing leadership functions that I'm about to talk about.


[User] Please transcribe this text

[Assistant] It's a subtle distinction, but it's not a subtle distinction, it's an important distinction. If someone says they're a leader in the company, if Mark Hurd of HP says, I am the leader of the company, he in fact may be the manager of the company.


[User] Please transcribe this text

[Assistant] That the chief managing officer of the company more than the leader of the company. And I'm going to get back to that.


[User] Please transcribe this text

[Assistant] But not just because someone calls themselves a leader or they're called to be in leadership, that does not mean that they are. Uh, leadership,


[User] Please transcribe this text

[Assistant] Is an ageless phenomenon that has been studied for a long, long time. Anyone know why that is? Since the beginning of time.


[User] Please transcribe this text

[Assistant] If you were going into battle, we were going to defeat, one was going to defeat the other, there's the study of how do effective military leaders get people to do these extraordinary things and literally follow them.


[User] Please transcribe this text

[Assistant] So, leadership has been going on for a long, long time.


[User] Please transcribe this text

[Assistant] It is only recently that we've looked at management in the past hundred years, okay? So what exactly are you taught at schools of management primarily?


[User] Please transcribe this text

[Assistant] How to organize large complex companies, correct? That's, how do you, boy that didn't


[User] Please transcribe this text

[Assistant] So, it, it, uh, management is about achieving order.


[User] Please transcribe this text

[Assistant] You know, and dealing with complexity. It's about Six Sigma is not about leadership really. It's about achieving order. It's about getting predictable, sustainable results that we know are going to happen. Fundamentally different, fundamentally different.


[User] Please transcribe this text

[Assistant] And we can go back and talk about this because you have a very interesting case study, uhm, at 3M.


[User] Please transcribe this text

[Assistant] And it moved much more to the management side.


[User] Please transcribe this text

[Assistant] And a lot of the innovation was squeezed out of the system.


[User] Please transcribe this text

[Assistant] Six Sigma is an example of management techniques that you learn. So, how do we organize? How do we create order and consistency to optimize? Optimize key objectives, which are important to share.


[User] Please transcribe this text

[Assistant] This is, this is extremely important to do, right? If you can't deliver, you can leave people and you can't deliver, you will have no credibility. So you have to do both. But they are fundamentally different, I would argue.


[User] Please transcribe this text

[Assistant] Again, you can get this. Well, I'm in management.


[User] Please transcribe this text

[Assistant] Don't be confused by the term I'm in management or that's a manager. Look at the functionality that you're performing at that time or in that position is more important.


[User] Please transcribe this text

[Assistant] You know, this is only relatively recently that there were


[User] Please transcribe this text

[Assistant] Schools of management and really studying this. It is much, it is not


[User] Please transcribe this text

[Assistant] Like we've talked about with military, people have been looking what makes for a leader. So.


[User] Please transcribe this text

[Assistant] The core processes that I would argue of leadership are, one, to establish a direction, two, to align the people, and three, to motivate and inspire.


[User] Please transcribe this text

[Assistant] All those things are going to be very, very important to you at critical times in your company.


[User] Please transcribe this text

[Assistant] As we'll talk about in a second, does anybody have a sense when these, when these skills will be extraordinarily important?


[User] Please transcribe this text

[Assistant] Kira, you look, you look like you knew and then you looked away.


[User] Please transcribe this text

[Assistant] There's a change that goes on, there's something that was not predictable that you couldn't optimize because you didn't have the data before the fact.


[User] Please transcribe this text

[Assistant] And when you look at that, you will see this is when leaders rise. Right? Yes. Salava.


[User] Please transcribe this text

[Assistant] Absolutely, at the beginning, because you have, you're not optimizing, you're trying to figure out what the heck to do, right? So, leadership is essential to create this initial kind of organism that's a faith-based organism, right?


[User] Please transcribe this text

[Assistant] And then we're gonna, and then I collect all these people and then we get there and we say, now what?


[User] Please transcribe this text

[Assistant] We've got a company, now what do we do? So it's extremely important then, but then as you move forward,


[User] Please transcribe this text

[Assistant] Especially in a startup, there's so many unpredictable things that happen.


[User] Please transcribe this text

[Assistant] At the beginning. It's not like a large company where you can optimize because you know what's happening. It's a crisis or change.


[User] Please transcribe this text

[Assistant] We need to change it. We just found out that our product strategy doesn't work.


[User] Please transcribe this text

[Assistant] You know, our competitor just launched a product that appears to be much better than our product.


[User] Please transcribe this text

[Assistant] This is when leadership all of a sudden becomes absolutely critical.


[User] Please transcribe this text

[Assistant] It's basically movement and creating passion in times of crisis or change.


[User] Please transcribe this text

[Assistant] So, the three core processes I would argue of management are planning and budgeting. That's what you, you, when you run a company, you start, you have to do this. This is not something you can just say, it doesn't matter, I'm going to do the high level strategy stuff.


[User] Please transcribe this text

[Assistant] You know, uhm, I'm going to get, create passion for people because it's not sustainable unless you


[User] Please transcribe this text

[Assistant] Figure out how you're going to execute it with the resources you have. How do you organize the staff? And how do you avoid crises that you, you don't want? When you're a startup, there's this perception that we love risk. No, we, we as entrepreneurs, we like risk where we have an unfair advantage.


[User] Please transcribe this text

[Assistant] You know, I don't know many entrepreneurs who like to just go to Vegas and gamble because they don't control the game. They don't have an unfair advantage.


[User] Please transcribe this text

[Assistant] What, once, once you're an entrepreneur, you try to figure out where I have an advantage, where I bet, I'm gonna bet on this. I know speech, Matt. Matt knows speech recognition.


[User] Please transcribe this text

[Assistant] I bet the speech recognition is going to be better. We have a whole bunch of people who are better than other people. I want to bet on that. I don't want to bet on, take risks on, you know, uhm,


[User] Please transcribe this text

[Assistant] Currency exchange or some kind of new management technique. He's just, that's what you want to bet on and you de-risk everything else.


[User] Please transcribe this text

[Assistant] So management is important for de-risking as well and problem solving as you go through it. So, this is about consistency, order, and predictability.


[User] Please transcribe this text

[Assistant] This just goes through and in the slides when you get them, if you're interested.


[User] Please transcribe this text

[Assistant] Management, planning, budgeting, reducing risk, increasing ROI. It's usually less than one year. And you're trying to break things down. This is not systems thinking. This is breaking things down.


[User] Please transcribe this text

[Assistant] You're controlling a problem solving, you're containing, controlling and then making it predictable. All this stuff is very, very valuable.


[User] Please transcribe this text

[Assistant] And I don't like the word strategy, but it's longer term direction where you're taking calculated risks, as I just talked about. It's things like values, establishing corporate culture, which we're going to talk about this afternoon. That's a leadership issue. That is not a management issue. There might be management processes to help you get there, but it's


[User] Please transcribe this text

[Assistant] And then it's a holistic view. This is where you think in a systems way. We're looking at the bigger picture. We're kind of pulling all this together. This is, we're thinking in a 3D chess


[User] Please transcribe this text

[Assistant] Perspective. Here you're thinking almost in a checkers perspective.


[User] Please transcribe this text

[Assistant] And then we're, we're getting the people and we're thinking about how do the people in these different groups, how do they align? How do they integrate?


[User] Please transcribe this text

[Assistant] And then we're looking to get their commitment that they're buying into the longer term vision that will make sense as they go through these oscillations and they'll execute this much more. So motivating, inspiring. Okay, so predictably we went through that.


[User] Please transcribe this text

[Assistant] So is there tension between the two? There absolutely is a tension between the two of them.


[User] Please transcribe this text

[Assistant] Uh, for sake of time, I'm gonna go through this so we stay on course. I would like to make it more interactive, but...


[User] Please transcribe this text

[Assistant] There is absolutely a tension between the two because you want, you're so passionate about it, you're driving it, and then all of a sudden you need to get stuff done and people see you changing your role.


[User] Please transcribe this text

[Assistant] You're like, wait a second, you were talking about all these big things and now, you know, how we need to be empowered and now you're micromanaging me.


[User] Please transcribe this text

[Assistant] And, and, and it's harder in that, and, and, you know, in a small company, it's hard to have a good cop, bad cop. When I'm, when I was at IBM, we had a good cop, bad cop. I mean, it was pretty simple, you know.


[User] Please transcribe this text

[Assistant] You know, if I was the higher level manager, I was the good cop, and the lower level manager would be the bad guy and beat him up.


[User] Please transcribe this text

[Assistant] And, but you don't necessarily have that luxury at a small company. So there is definitely a tension between the two. And the manager is focused on doing it and what they think what they're doing is the most important thing in the world as they should.


[User] Please transcribe this text

[Assistant] So which is more important? That's, that's not the right question. The question is,


[User] Please transcribe this text

[Assistant] How do you proceed? You must recognize both. And you must start building skills to be able to do both.


[User] Please transcribe this text

[Assistant] Uhm, and by the way, as people, you know, people


[User] Please transcribe this text

[Assistant] Like to think they start here, then they migrate to this level, and then they start to lose these skills. And as you do more and more of this, your skills tend to atrophy over here. This is a traditional one.


[User] Please transcribe this text

[Assistant] Uh, if you just start here, it's, it's, uh, you end up not being very successful, because you have to be able to execute. So, uhm,


[User] Please transcribe this text

[Assistant] So you have to recognize what you're good at and get the right balance. Have enough skills that you yourself can appreciate both sides. You might be very good at one or the other.


[User] Please transcribe this text

[Assistant] But as the company grows, your role is going to move more to this side than it is to that side. You're going to hire managers who kind of do that, and you manage the managers. Okay. So let's talk about examples. Winston Churchill. You all know, do you know Winston Churchill? Do we have any Winston Churchill aficionados here?


[User] Please transcribe this text

[Assistant] No. So was Winston Churchill a manager, more of a manager or a leader?


[User] Please transcribe this text

[Assistant] Yes. So you, you think he was a manager and then a leader?


[User] Please transcribe this text

[Assistant] Do we have anyone from the UK here? We don't have anyone from the UK here. Alright, does anyone else know much about Winston Churchill? He was literally thrown out when you were talking about, do you know Dennis? No.


[User] Please transcribe this text

[Assistant] So the interesting thing is he was in the military and he made one very important decision and that was he switched him over from coal to oil. He made a strategic decision and that's where he got, but then he essentially got thrown out of his job.


[User] Please transcribe this text

[Assistant] And he didn't have a job. But as soon as they got into crisis, and it was like, he came back in.


[User] Please transcribe this text

[Assistant] And he was the one person that they could look to when there was the World War II. And he was, you know, by all accounts, whether you like him or not,


[User] Please transcribe this text

[Assistant] He was an extraordinary leader. Extraordinary leader in that time. And then as soon as World War II was over, what happened?


[User] Please transcribe this text

[Assistant] Uhm, they, they threw him out of office. They threw him out of office. But in that time, he was extraordinarily, uhm,


[User] Please transcribe this text

[Assistant] He, he, he just did not like this stuff at all.


[User] Please transcribe this text

[Assistant] And he downplayed it significantly, but in a crisis he's shown he was extraordinary, but he never got the balance.


[User] Please transcribe this text

[Assistant] He was strictly a leader who needed a crisis and then he got bored otherwise.


[User] Please transcribe this text

[Assistant] And therefore, while he is looked at as one of the extraordinary leaders of all time, you can't say he was one of the great, you know, uh,


[User] Please transcribe this text

[Assistant] Running c- a country, he was not particularly good. He didn't have a good balance in that. So Mitt Romney. Yes, Slava?


[User] Please transcribe this text

[Assistant] He was very successful at running companies, uhm, he was very successful at managing people who ran companies, uhm, and then he ran for office and what happened.


[User] Please transcribe this text

[Assistant] Who was very, very effective. There's no question about it. Everyone you speak to, you know, he was a very effective manager.


[User] Please transcribe this text

[Assistant] When it came to running for office and motivating people and getting passion, was he successful?


[User] Please transcribe this text

[Assistant] He, he, he, he's, it's almost like he's a business person doing a marketing study to figure out what the market wants, and then I will give you my position on abortion, or I will give you my position on this. And I'm, by the way, I'm not, I don't mean to be, uh, as you'll see, I, I'm gonna talk about this, I'm not,


[User] Please transcribe this text

[Assistant] But that's not what people look for in leaders, do they? What do they look for?


[User] Please transcribe this text

[Assistant] Values, consistency into where you're going, predictability. Was Ronald Reagan a great manager?


[User] Please transcribe this text

[Assistant] The answer is, he was actually, and again, I'm not making political statements here. I'm just saying, is it, is it studying this stuff, looking at this? Ronald Reagan, you knew what his convictions were, arguably, he had Alzheimer's, but at least you knew what his convictions were at the time, and it was very consistent.


[User] Please transcribe this text

[Assistant] Going to Jeffrey's point, people were uncomfortable with leaders where it's unpredictable what they're going to do. They're optimizing things. When they want leadership, that's not what they're looking for.


[User] Please transcribe this text

[Assistant] Okay, it's very easy to do these, the, the political ones. We could also do, uh, some Jack Welch. Jack Welch. What do you think? Leader? Manager?


[User] Please transcribe this text

[Assistant] Results that were tangible in relatively short periods of time and did have a dose of leadership to motivate people to give them the consistency. So here you see someone who's very well, is in balance as to what he's, he's achieving. They feel that there's consistency in what he's doing.


[User] Please transcribe this text

[Assistant] So, now you can say, well geez, didn't Romney achieve the same things?


[User] Please transcribe this text

[Assistant] Romney was more of a clear manager and Jack Welch had more of the inspiration factor for people in business. Obama. If you were to look, let's go back to the election, the election, alright, before. You have Obama and you have Hillary Clinton, alright.


[User] Please transcribe this text

[Assistant] Well, we're going to talk about leadership and the role of charismatic and how it's overrated, but let's go back to Obama. What was his tagline? What was his...


[User] Please transcribe this text

[Assistant] Yes, we can. Crowds chanting, yes, we can. What was Hillary Clinton's tagline?


[User] Please transcribe this text

[Assistant] Look at those two messages and what do you see? Who's the manager?


[User] Please transcribe this text

[Assistant] Hillary was selling competence. Hillary was selling competence. Right? What was Obama's, Obama's selling?


[User] Please transcribe this text

[Assistant] He was selling hope and change, and the subtle message, if you looked at that, I was watching a very, that,


[User] Please transcribe this text

[Assistant] By the time Clinton realized, and you have to understand, this is one of the great, you know, great stories of all time of entrepreneurial marketing.


[User] Please transcribe this text

[Assistant] Obama had all, had literally so few resources and the Clintons had all the machine, they had all the people, they had all the political capital on his side and you had Obama with this, with this basically entrepreneurial campaign.


[User] Please transcribe this text

[Assistant] And, and she was selling confidence and the inevitability that she would be.


[User] Please transcribe this text

[Assistant] And that was not what the people wanted. And Obama hit stride and got his message, yes, we can. You're on my side. Yes, we can.


[User] Please transcribe this text

[Assistant] And she was up saying, I'm competent on day one, are you going to take, who do you want to take the call? And he's saying, we are all in this together as opposed to I am more competent than my, it was just two hugely different messages.


[User] Please transcribe this text

[Assistant] And by the time the Clinton campaign did that, I'm not a political campaign person by the way. I get involved with no campaigns. But it's just very interesting to watch. This was a case, an absolute crystal clear case of one side selling management and one side selling leadership. And at the time, what the people wanted was leadership.


[User] Please transcribe this text

[Assistant] What they want is leadership. And by the way, in politics, more often they, they value leadership over management. Uhm, which is an interesting situation. So.


[User] Please transcribe this text

[Assistant] As you go through, I would tell you, look at people and start to see. Do you see more management? Do you see more leadership? Why do you feel that? Are they effective? At some point, people want, they will elect.


[User] Please transcribe this text

[Assistant] Eisenhower said that when you look at military, it's another good place to look at leadership versus management. Leadership is the art of getting someone else to do something that you want done, and they think that they've decided to do it themselves. You've motivated them to do what you want. And we'll talk later about Level 5 leadership after the break, but


[User] Please transcribe this text

[Assistant] This is an art of leadership that's very very important. Uhm, alright, so I need to, I need to push this along.


[User] Please transcribe this text

[Assistant] Management, this is Peter Drucker, management is doing things right, leadership is doing the right things.


[User] Please transcribe this text

[Assistant] So hopefully now you're starting to see the difference between the two of these, uhm, as you go through. Leadership is what, we're doing the right things, I have to move people, there's change involved.


[User] Please transcribe this text

[Assistant] And startups, each is more intense when you do it. It's time compressed, the stakes are higher. The switching time is much shorter.


[User] Please transcribe this text

[Assistant] And if you get it wrong, the stakes are much higher on a relative basis. You'll say, well, you don't have that much to lose as well. Well, you'll go out of business and then you have to go back to work. You don't have the buffer.


[User] Please transcribe this text

[Assistant] And great entrepreneurs, when you watch great entrepreneurs and, and, and, you know, Jeffrey, you have six experiences, when I watch it now, they know how to switch from one to the other.


[User] Please transcribe this text

[Assistant] You know, you'll see a Stephen Jobs or you'll see Mitch K. Pore in his day. He can go from one to the other just like that.


[User] Please transcribe this text

[Assistant] And when you watch great entrepreneurial leaders, that's what they do. And that's what you want to be able to do. You have to understand you have to shift gears in the process. And don't downplay


[User] Please transcribe this text

[Assistant] Management, because you absolutely need it. There was a very interesting article in the Sloan Management Review that said, you know, basically leadership is overrated, it's all about management, which


[User] Please transcribe this text

[Assistant] Any questions about management versus leadership? Yes, Sasala.


[User] Please transcribe this text

[Assistant] Bill Gates, and I do this case study about, there was actually someone, uhm, and I still enterprise class, the, the, the, uh, operating system market was actually owned by a guy named Gary Kilbaugh.


[User] Please transcribe this text

[Assistant] From, uh, it's called Galactic Digital Research. And he owned this. But he looked at his company as just the best software company. And he didn't have culture, he didn't have values, he didn't have all those things.


[User] Please transcribe this text

[Assistant] But he had the best operating system. He's actually in the hackers hall of fame or whatever it is. And he had the best service called CPM.


[User] Please transcribe this text

[Assistant] And Gates didn't have anything and he was running around and he had Paul Allen and a bunch of other people and it was like, there were a bunch of crazies.


[User] Please transcribe this text

[Assistant] You know, they literally look like a cult. If you go back and look at the early years, early pictures of Microsoft, they look like a cult.


[User] Please transcribe this text

[Assistant] And somehow this guy got all these people and he had no money. He had no product. And Gary Kildall had all the product. But what Gates had is he had extraordinary faith.


[User] Please transcribe this text

[Assistant] And he had the ability to get people to follow him and to believe in his longer term vision.


[User] Please transcribe this text

[Assistant] And what ultimately happened, you probably have seen this, my tweets about it is, that culture eats strategy for breakfast.


[User] Please transcribe this text

[Assistant] And what happened was, he had this, this, this like, this cult going over here. And even though Kildall was better, Kildall just kind of was not passionate about it, was not working hard, didn't have these super motivated people. And he did not, when IBM came to call, he, he left his significant other to negotiate with IBM.


[User] Please transcribe this text

[Assistant] Bill Gates was chasing around IBM to get the deal. Bill Gates ended up getting the deal. This is all, this is all, you can check this stuff out. He ended up going across town, sending Paul Allen across town to build a weak clone of the CPM operating system. And then he took that and he gave it to IBM.


[User] Please transcribe this text

[Assistant] Killedall then, then, uh, then sues IBM and says, you need to sell mine as well because that one infl- uh, uhm.


[User] Please transcribe this text

[Assistant] In fringes on my patents. It's the same code basically. You know, how can you do this? It's uh, or it's similar code.


[User] Please transcribe this text

[Assistant] And, and so IBM said, okay, we'll do that. We'll, and we'll resell yours. We'll sell yours for


[User] Please transcribe this text

[Assistant] $278 and we'll sell Microsoft for $95 and I guess he thought that was okay because his product was better but what happened was it gave


[User] Please transcribe this text

[Assistant] Now, was he, he ultimately started out here, but he was relentless and very, very smart over here and kept bringing in people, not just Balmer, but there was a number of people before him, and they managed the business, but their, but their, their values, their culture


[User] Please transcribe this text

[Assistant] Overcame someone else who did not have those types of leadership skills.


[User] Please transcribe this text

[Assistant] It's a very interesting case if you go back. And that's what we do in the class. We compare Gary Kildall, who had the superior product and install base and all this, against someone who appeared to have absolutely nothing. And they appeared to be a bunch of Looney Tunes, you know, over here.


[User] Please transcribe this text

[Assistant] You know, he essentially died broke. I mean, he, he, he, he's become a footnote in history.


[User] Please transcribe this text

[Assistant] A lot of people in the Obama administration that they said never let a good crisis go to waste.


[User] Please transcribe this text

[Assistant] Uhm, because it's your time, you can rise up and you can change things that people would not change otherwise. So, that's a very good point.


[User] Please transcribe this text

[Assistant] Okay, so what I want to do here is I just want to go across, kind of, this is the pseudo-intellectual's guide to leadership research.


[User] Please transcribe this text

[Assistant] Uhm, what areas did I look at and I found were very interesting and then I'm just going to bring up the key points within those. So, uhm, I want to talk about the MIT leadership model and, and, you know, in this, they, they talk about, uhm,


[User] Please transcribe this text

[Assistant] First of all, they research as to what's going on, and there's a misperception that charismatic leaders do better. They produce better results over time.


[User] Please transcribe this text

[Assistant] Uhm, or maybe it's integrity, or maybe it's their optimistic, or maybe it's their task versus relationship warrior, or it's the autocrat, and all this stuff, it turns out that


[User] Please transcribe this text

[Assistant] You look at it and people tell you stories, but they're not getting the whole picture.


[User] Please transcribe this text

[Assistant] And it depends on the situation. And in fact, the data doesn't bear that out. So all these things don't give you the full picture as to what's going on with leadership.


[User] Please transcribe this text

[Assistant] So these are the people that do it here, and I would suggest while you're here, you, uh, definitely take classes there.


[User] Please transcribe this text

[Assistant] The key points that I take away from this as an entrepreneur that I want to emphasize is, first of all, leadership in today's world is no longer the single herculean person who stands up there. The days of Winston Churchill. That's not what it's like in an entrepreneurial venture. That's not what it's like in business.


[User] Please transcribe this text

[Assistant] Leadership actually is distributed throughout the organization, much more so. It's a much more complex world and you want to, and you want to get the best people working for you. So leadership is distributed and it should be. It's a competitive advantage if you have leadership capability that is distributed amongst people in the organization.


[User] Please transcribe this text

[Assistant] It does not have to all reside in one person. And if you look at the research,


[User] Please transcribe this text

[Assistant] That it shows that founders of companies, which does not necessarily mean you're the leader, uhm,


[User] Please transcribe this text

[Assistant] One of the founders almost has to be a leader, but not all of them.


[User] Please transcribe this text

[Assistant] The number of founders you have increases your odds of success. So if I have two founders, I'm much more likely being successful than if I have one founder, statistically. If I have three, it's better than two.


[User] Please transcribe this text

[Assistant] Better than fi- better than three. It goes up until you get to five or so. Is that right, Matt? And then it starts to flatten out and then it goes down because you have too many.


[User] Please transcribe this text

[Assistant] So, leadership is distributed. Don't think that you have to have all of this. Think of leadership capability in your organization as you're building it.


[User] Please transcribe this text

[Assistant] Uh, leadership is also personal and developmental. What will work for one person may not work for you.


[User] Please transcribe this text

[Assistant] Steven Jobs' leadership style is probably not a good fit for you.


[User] Please transcribe this text

[Assistant] What is the right fit? So you have to think as to what it is. And then by the way, it's clear that over time you can develop leadership skills. So it's most personal and developmental.


[User] Please transcribe this text

[Assistant] And leadership is a process to create change.


[User] Please transcribe this text

[Assistant] When we need to optimize and we know what all the inputs are,


[User] Please transcribe this text

[Assistant] It's almost an operations research problem. That's more the management side.


[User] Please transcribe this text

[Assistant] That, that the, but leadership comes to the floor for when you, you have change or you need change to happen. And


[User] Please transcribe this text

[Assistant] Again, leadership is something that develops over time with people. They can get better at it or they can show no improvement in it.


[User] Please transcribe this text

[Assistant] This framework that hopefully, how many of you have gone through courses with this framework?


[User] Please transcribe this text

[Assistant] That's most of you. Okay, good. So, who has never seen this before?


[User] Please transcribe this text

[Assistant] Let me just say, when I look at this and you have the visioning, someone who has the vision, and that's kind of the Martin Luther King example I use, I have a dream. Here's where we need to go.


[User] Please transcribe this text

[Assistant] Someone in the organization should be looking over the horizon. Out over the horizon. Where's the next thing?


[User] Please transcribe this text

[Assistant] If you don't have that skill, who in your organization has that?


[User] Please transcribe this text

[Assistant] And frequently it doesn't have to be the CEO. It doesn't have to be someone who's managing a lot of people. It might be you're running the business and there's someone else who's out there looking over the horizon to come up with big ideas.


[User] Please transcribe this text

[Assistant] Then you have to have someone who understands what's going on in the industry.


[User] Please transcribe this text

[Assistant] You know? And, and, and, and there are changes in the industry. One of the biggest mistakes, and this is where the lean startup movement has it right. You can't say, this is where we want to go, and things aren't going to change over time, so let's put together a two-year development plan to get there. No. You have to say things are changing in the marketplace.


[User] Please transcribe this text

[Assistant] And what, what's changing? And who in your team, who has that capability to understand what's going on in the marketplace? That's a very, very important skill. And then relating, relating is


[User] Please transcribe this text

[Assistant] You know, you might know what needs to get done and you might know where the, the current state is. Sense making is the current state.


[User] Please transcribe this text

[Assistant] The, the visioning is the desired state. Then the question is, how do you get that done? And to get that done, you need to get it done through people.


[User] Please transcribe this text

[Assistant] Who's your people person? Who has the relationships that can just call up other people to get it done?


[User] Please transcribe this text

[Assistant] And you'll say, well that's my salesperson. Well your salesperson has those skills, but they might not be the right person to put in this situation because they're motivated by quota and things like that. But who on your leadership team that's looking out for increasing the shareholder value of the whole company has these interpersonal relationship skills?


[User] Please transcribe this text

[Assistant] And that's what's really, really important. LBJ is the classic one here. He has the ability to get those, to get them done.


[User] Please transcribe this text

[Assistant] Inventing is, okay, so now we know what our desired state is and we know what the current state is.


[User] Please transcribe this text

[Assistant] And we know how, we're continually pulsing that to make sure it's changing. And we know the people to get it done. But how do we get from the desired state to the future state? Who's good at just, as we say, GSD? Just getting stuff done.


[User] Please transcribe this text

[Assistant] And they get stuff done in a new environment that hasn't been done before. They're inventing the new, the ways to get things done that haven't been done before.


[User] Please transcribe this text

[Assistant] This is where you're getting into more the execution, the management side of things, but that's where the two start overlapping and link. And the change signature essentially is


[User] Please transcribe this text

[Assistant] What are you, uh, what's unique about your skills as a person that makes you good at doing this?


[User] Please transcribe this text

[Assistant] So the point of this as a startup is, when I go through it, people say, well I want to develop, I have to develop all these skills, so I need to, no you don't, you shouldn't, you need to have enough in each one of these things that you satisfy and you appreciate all these.


[User] Please transcribe this text

[Assistant] What was very successful, you know, Thomas had the visioning, I had the sense making and the relating, and he had some of the inventing. But really his was the visioning and what was possible from a technology standpoint. And together we made a very, very good team.


[User] Please transcribe this text

[Assistant] Now, when it came down to some of this to get some of these things done, we brought in other people, and they became part of the management team. Guy Rodamista, Dan Staples.


[User] Please transcribe this text

[Assistant] But in hindsight, I didn't have this model, but now I look back and I look back with other companies I work with them.


[User] Please transcribe this text

[Assistant] I kind of break this down and explain it. Then we have a discussion and say, what are you good at? What are you not as good at? What is your other executive management team?


[User] Please transcribe this text

[Assistant] And again, these aren't people, the moment that you bring, the example I use where I've seen it fail is, oh, my salesperson is very good at relating to people. Again, the problem is, if the salesperson


[User] Please transcribe this text

[Assistant] It is, it has a quota, and he's on, he or she is on commission.


[User] Please transcribe this text

[Assistant] You need to have someone who's, who's, has a big chunk of equity as looking at the big picture that's on your, we'll call, leadership team, uhm, to do this. So, that's the, uhm, so that's what I really take away from this. Uhm,


[User] Please transcribe this text

[Assistant] Have any of you thought about how you applied this to startups that you've been at? Do you take this the first year or the second year? Slava? First? And then you went out to a startup and did you think about applying this in that situation?


[User] Please transcribe this text

[Assistant] I would tell you, if you think about it that way, and then think about startups, what kind of capability is this? And you'll see that, that,


[User] Please transcribe this text

[Assistant] Startups that are successful have these different characteristics. And they're not all the same. And the change signature we're gonna talk about really comes down to the culture. Okay, so now let's go to the next thing. How many of you have taken system dynamics?


[User] Please transcribe this text

[Assistant] Okay, so I'm going to, I'll tell you, this is a really hard course here, but it is one of the great courses. It was invented here. It's a great skill to know about.


[User] Please transcribe this text

[Assistant] Basically, I'm gonna just give you the dummies version to system dynamics.


[User] Please transcribe this text

[Assistant] Most, if you're a leader and you think in a linear way, if you think cause and effect,


[User] Please transcribe this text

[Assistant] But that helps to make you a much more effective leader.


[User] Please transcribe this text

[Assistant] So, you know, before you leave I would suggest that you


[User] Please transcribe this text

[Assistant] Take some system dynamics. If you take the class, you'll find it very


[User] Please transcribe this text

[Assistant] And even such a thing as I turn the water faucet on and water comes out. Actually what's happening is, I turn it on, the water flows out, it gets to a certain level, I look, I perceive where that is, I have a level that I want it to go to, and then I turn it off.


[User] Please transcribe this text

[Assistant] Oh geez, that's so obvious, Bill. What, what, what's the point here? But as you start looking at this, you'll start seeing that this is the constraint. The desired water level is the constraint that's in the system. That's what's called a governor. And we, we have a feedback loop that just stops. The issue is, is when you have self-reinforcing feedback loops. This is when it's called going viral.


[User] Please transcribe this text

[Assistant] And self-reinforcing feedback loops can be very, very good things. They can also be horrific if you're going down. These are death spirals.


[User] Please transcribe this text

[Assistant] So, here's the one that we emphasize all the time. It's the number one driver of startups. The leverage point you have is word of mouth.


[User] Please transcribe this text

[Assistant] So if you pick your customers and you do a really good job with them,


[User] Please transcribe this text

[Assistant] And you sell them the right product that meets their need. They're very satisfied. They will go out and they will tell their friends who are very similar to them


[User] Please transcribe this text

[Assistant] Because they fit your target profile and that's who they like to talk to. That we love Kira's product.


[User] Please transcribe this text

[Assistant] They love Kira's product. So then they tell other people and then that produces sales for you that give you more sales of similar people and then you get more and you're in a positive feedback loop.


[User] Please transcribe this text

[Assistant] So this is the snowball rolling down the hill. So this is, this is great, right? Uhm, and this is what you're trying to get to. But there are limits to the growth in this. Okay?


[User] Please transcribe this text

[Assistant] So just as before we talked about desired water temperatures, uhm, there's, uh, with something that's right in front of us, if you are in, so let me just summarize this, I'm sorry. This last slide is,


[User] Please transcribe this text

[Assistant] This is what you're trying to get. High leverage, positive reinforcing feedback loops. If we


[User] Please transcribe this text

[Assistant] If we, uhm, we have time delays in systems. If I'm in a hotel on the 10th floor and I turn the faucet and I want it to be hotter and it's not hot yet.


[User] Please transcribe this text

[Assistant] And I'm not impatient, I turn it to be hotter yet. I didn't wait until the water got all the way up there. So there was a time delay when the water should have...


[User] Please transcribe this text

[Assistant] But I didn't get, I didn't wait, and I didn't anticipate that time to light.


[User] Please transcribe this text

[Assistant] So why does that matter? When you start looking at businesses, you're gonna understand if you become impatient with solutions that you put in place, you will never know whether they work or not. And if you become impatient as a leader, other people will be.


[User] Please transcribe this text

[Assistant] So this just says, alright, so you talked about the positive feedback loop and all this is great, so we get, we sell new products, the revenues go up, we increase the R&D budget, this, this feedback loop should go on indefinitely. However, when that's happening,


[User] Please transcribe this text

[Assistant] We can't be in that indefinitely. There are limits to the growth.


[User] Please transcribe this text

[Assistant] Uh, you should think about system dynamics and, and, uh,


[User] Please transcribe this text

[Assistant] You should, you should think about getting exposure to it here. It's very, very helpful as a manager because if you think in a linear manner as being an impatient leader, your entire organization will think that way. And when you look at the, you know, uhm, the number one here is the fifth discipline.


[User] Please transcribe this text

[Assistant] Uhm, Peter Senge is, today's problems most often come from yesterday's solutions. If you do a linear thinking and you try to solve the problem, case in point, see it all the time,


[User] Please transcribe this text

[Assistant] Our revenues aren't very good this quarter, so we're going to discount our product at the end of the quarter. You discount your product at the end of the quarter. You didn't think about where the real problem was.


[User] Please transcribe this text

[Assistant] And you make it through this quarter. That helped you make it through this quarter. So we hit our target for this quarter. Third quarter of the year. Great. What happens next quarter?


[User] Please transcribe this text

[Assistant] Well all of a sudden we start out and people think our price point is lower.


[User] Please transcribe this text

[Assistant] And we didn't get to the real problem was that the people weren't buying the product. We didn't make our number.


[User] Please transcribe this text

[Assistant] Not because we didn't discount, we didn't make the number because we didn't have the right features in the marketplace, our customer service hadn't been up to speed, and then the next quarter


[User] Please transcribe this text

[Assistant] We start off with people believing that our price point is much lower.


[User] Please transcribe this text

[Assistant] And our revenue, our targets are still going up.


[User] Please transcribe this text

[Assistant] But our revenue's going down because we discounted it, and they're valuing our product less, and we didn't get back to the root cause to address what the real problem in the situation was. We put a band-aid over it, which just makes it worse.


[User] Please transcribe this text

[Assistant] And so as leaders of entrepreneurial, look, there's a huge urge to just jump to linear solutions.


[User] Please transcribe this text

[Assistant] And you have to step back. You will be the only one who has the security in the organization really to do that. Step back and say, wait a second. Let me think about this in a little more depth than just a linear approach. Okay. So the last, the last thing is, uh, level five leadership. Have you all talked about level five leadership in your classes?


[User] Please transcribe this text

[Assistant] Okay, this is a book called, uh, Jim Collins Built to Last, Good to Great.


[User] Please transcribe this text

[Assistant] Very interesting stuff. I would suggest you go, you know, read it. It's not a difficult read. And the reason why I tell you this is because there's a lot of counterintuitive stuff in there. There's a lot of counterintuitive stuff in there.


[User] Please transcribe this text

[Assistant] This quote from Harry Truman is obvious to you. You can accomplish anything in life provided that you don't mind who gets the credit. That's how you build up team spirit.


[User] Please transcribe this text

[Assistant] But then they get down to very specific examples of people who drove extraordinary results.


[User] Please transcribe this text

[Assistant] Have any of you heard of Darwin Smith?


[User] Please transcribe this text

[Assistant] No one's heard of Darwin Smith. Have you heard of Jack Welch? How many have heard of Jack Welch? Everyone in the room's heard of Jack Welch.


[User] Please transcribe this text

[Assistant] No one's heard of Darwin Smith. This is the point of the book. Darwin Smith outperformed Jack Welch. He was at Kimberly Clark. He never, he never went out and sought the spotlight.


[User] Please transcribe this text

[Assistant] But he built an organization that was successful year after year after year and after he left as well. By the way, you want that?


[User] Please transcribe this text

[Assistant] You might for your ego think you want the company to go down, but as founders of entrepreneurs, that's not what you want at all. Because your equity will still be tied up in that company.


[User] Please transcribe this text

[Assistant] First of all, it's a wrong thing to build, to do. But second of all, your equity is still tied up in that company. And I can explain that to you from great, uh, personal


[User] Please transcribe this text

[Assistant] Uh, losses, but you want that company to be sustainable.


[User] Please transcribe this text

[Assistant] They found him, that guy Jim Collins did the analysis and he turned out this guy Darwin Smith was one of the most successful CEOs of a major company and no one knew who he was.


[User] Please transcribe this text

[Assistant] And so I went to interview Darwin Smith, and Darwin Smith really didn't want to hear it. He said, Darwin, what do you, what do you attribute your success to? And Darwin Smith says,


[User] Please transcribe this text

[Assistant] I just never try- I just never stop trying to become qualified for the job.


[User] Please transcribe this text

[Assistant] I just, you know, I came in every day, I was trying to get better and do what I was doing. And I, and I was very humble about it. So this is when it came, the level five leadership. So, when they, when he did his research,


[User] Please transcribe this text

[Assistant] You know, there were a few very interesting things. First of all, if you see articles about the CEO, beware.


[User] Please transcribe this text

[Assistant] Because they're much more likely to be a poor performing company if there's a lot of articles that feature the CEO. Hmm, that's interesting.


[User] Please transcribe this text

[Assistant] Uhm, in two-thirds of comparisons, we know the presence of a gargantuan personal ego that contributed to the demise of the company. Now this is, this is large companies.


[User] Please transcribe this text

[Assistant] But this is still leadership that I find very interesting and applicable. Remember chainsaw Al Dunlop? You remember him? He was a big hero, cover of Fortune magazine, you know.


[User] Please transcribe this text

[Assistant] The odds are, if you're a CEO that pursues that, you will not be successful. Ultimately, you should short that company.


[User] Please transcribe this text

[Assistant] The interesting thing as well is that there's this, you know, and VCs don't like this when I say it,


[User] Please transcribe this text

[Assistant] There's this urge to go out and get people from outside of the company.


[User] Please transcribe this text

[Assistant] Who've been there and done it before to come in.


[User] Please transcribe this text

[Assistant] The studies show here that the best people are usually in the company.


[User] Please transcribe this text

[Assistant] They're usually in the company. And again, I have personal experience with this, knowing this, where I made this mistake.


[User] Please transcribe this text

[Assistant] I, I, I, I, I chose someone from outside the company and I should have chose someone from inside the company.


[User] Please transcribe this text

[Assistant] But there was a tremendous amount of pressure to get someone who'd been there done it before.


[User] Please transcribe this text

[Assistant] Well first of all, if they've been there and done it before, and they're still waiting to come into your company, you probably ought to ask a question.


[User] Please transcribe this text

[Assistant] But secondly, when you bring someone in from the outside and they come in.


[User] Please transcribe this text

[Assistant] They don't share the same DNA that's been developed by someone who's already inside the company. So you're taking a lot of risk.


[User] Please transcribe this text

[Assistant] That you built this company and now you're bringing in this new DNA and will it match up with what's in there?


[User] Please transcribe this text

[Assistant] You don't know that they're on the market that they are going to bring the skills in as well. So there's a lot of risk involved in this.


[User] Please transcribe this text

[Assistant] You know, and this is one of the things that I believe very much so. The best person to be a leader and to probably be on your management team most more often than not is someone who's already in the company that you know. Give them the chance and develop them.


[User] Please transcribe this text

[Assistant] A level five leader does not take a lot of credit, but when things are going bad, they will take, they will step up.


[User] Please transcribe this text

[Assistant] So when things are going good, they step out of the way and let the credit go out the window. When there's a problem, they get up in the morning and they say,


[User] Please transcribe this text

[Assistant] This is probably something I did. Let me analyze the system, let me figure out what's wrong, and I'm going to fix it.


[User] Please transcribe this text

[Assistant] And there was a very interesting article about Stephen Jobs where they just went through and he just, uh,


[User] Please transcribe this text

[Assistant] They said, judge the art, not the artist. This is not the leadership style. I don't know if you saw this article.


[User] Please transcribe this text

[Assistant] What's global warming, you know? It was cold, it was cold last night. How could there be global warming, right?


[User] Please transcribe this text

[Assistant] The point is that the rigorous social science analysis that Matt's talking about shows you that this is generally true.


[User] Please transcribe this text

[Assistant] Uh, these things are never completely that simple. I mean, I actually know quite a bit about Steve Jobs.


[User] Please transcribe this text

[Assistant] He actually got thrown out of his company and he was very, very fortunate in a lot of regards. And it remains to be seen in some of these things. You have to understand that, that uhm,


[User] Please transcribe this text

[Assistant] Apple, the very interesting thing is when you look at Apple,


[User] Please transcribe this text

[Assistant] One reason why Apple succeeded was certainly his, his missionary zeal and all that to make a pro, but the product didn't map to the marketplace.


[User] Please transcribe this text

[Assistant] And the company that saved him in the situation of the Macintosh actually was all this page maker, which is now Adobe, who he's trying to


[User] Please transcribe this text

[Assistant] You know, keep out of his products. I mean, it's, it's, it's, the irony is just amazing.


[User] Please transcribe this text

[Assistant] And you have to, he did spiral down and was thrown out of Apple at one point.


[User] Please transcribe this text

[Assistant] Now the other issue is that Steven Jobs is what a friend of mine said who worked for him. He said he's like a 64-bit processor working in a 16-bit world sometimes. Uh, people just, he's so, his 3D chess game is 4D chess sometimes.


[User] Please transcribe this text

[Assistant] You have to dig into these things, but I want to go back to Jasol's point. Sometimes these things are put up there.


[User] Please transcribe this text

[Assistant] And people rewrite them the way that they want to as opposed to what the facts indicate.


[User] Please transcribe this text

[Assistant] So I, you know, I would recommend you reading this. It's a fascinating read. You'll go through it. There's a lot of counterintuitive stuff. To summarize, you know,


[User] Please transcribe this text

[Assistant] He says what level five leadership has is they have the professional will. And if you, those of you who play sports, you'll see this is true of great people in sports too.


[User] Please transcribe this text

[Assistant] The people who are out there, yeaah, it's usually the people who sustain results over time. They have extreme determination and extreme pride to make sure that whatever they do is of the highest quality.


[User] Please transcribe this text

[Assistant] And, and, and they're interested in the long term. And they're interested in their legacy.


[User] Please transcribe this text

[Assistant] Uhm, and if something goes wrong, they don't say, they don't blame other people. Well, that was the referee's fault, that was the competitor's fault, that we had a bad, you know, something.


[User] Please transcribe this text

[Assistant] Bad luck is what you make it to be, right?


[User] Please transcribe this text

[Assistant] Luck is what you make it to be. And if you have bad luck,


[User] Please transcribe this text

[Assistant] Then what are you going to do to make sure that that doesn't happen again? And that's what these people do. They don't accept the poor performance.


[User] Please transcribe this text

[Assistant] On the other hand, they have extreme personal humility in general.


[User] Please transcribe this text

[Assistant] Uhm, they, they, they, like Darwin Smith, you know, when you talk to these people and you ask them, this is when luck will come up.


[User] Please transcribe this text

[Assistant] You know, we'll go ahead and say, Matt, what do you attribute your success to here at your company? Because I've just been so lucky to have a great management team. Well, it actually wasn't luck at all in this case, but that's what they suit. They, they, they, they kind of pass it on to their team, and this totally motivates their team, right?


[User] Please transcribe this text

[Assistant] Uhm, so they, they, they channel the ambitions not to themselves, but to the, but to the company, and then everybody wants to help the company.


[User] Please transcribe this text

[Assistant] Yes, we can, as opposed to I am competent on day one. Right? It's not for the greater good of it. So.


[User] Please transcribe this text

[Assistant] Again, I, I, you know, as I started to look at this and work with leaders and think about where I blew it and what I did right, uhm, this was very, very helpful.


[User] Please transcribe this text

[Assistant] Let me tell you what I, I, I, I, in looking at this I would be like and what I would disagree with.


[User] Please transcribe this text

[Assistant] When they talk about level five leadership and good to great, they say,


[User] Please transcribe this text

[Assistant] First you have to determine who and then what.


[User] Please transcribe this text

[Assistant] Now this is not true for entrepreneurial ventures. Let me explain to you why. He says first determine who gets on the bus and then determine where the bus is going. Just get the best people you can and then figure out.


[User] Please transcribe this text

[Assistant] Maybe you can do that. That's what Hewlett and Packard did.


[User] Please transcribe this text

[Assistant] I don't believe that's the right approach, especially today.


[User] Please transcribe this text

[Assistant] You, uhm, you need to figure out what your vision is for this company.


[User] Please transcribe this text

[Assistant] What's your vision for this company? Okay? Joseph's gonna start a company. What is your vision? What is it you and your other founders? What are you trying to do?


[User] Please transcribe this text

[Assistant] And then you have to kind of motivate the right people generally to get on that bus. Now they don't have to have exact skills, but they have to understand where you're going.


[User] Please transcribe this text

[Assistant] Because you can't just get, you know, other people who you think are really smart and start a company.


[User] Please transcribe this text

[Assistant] You're on a targeted area. It's a very competitive thing. You have to get people who have relevant skills to that. They don't have to have deep domain expertise, but they have to buy into your vision as to where you're going. Now that vision will change as you go over time, the pivoting, but they have to believe


[User] Please transcribe this text

[Assistant] As to where you're going, I don't think you can just get on the bus and we'll tell you where we're going to go. That doesn't work as startup. Uhm, I think this is very, very relevant. You confront the brutal facts and you head on. But you're eternally optimistic.


[User] Please transcribe this text

[Assistant] They talk about the Stockdale Paradox. Okay? And the Stockdale Paradox was the one person who survived in Vietnam for the longest period of time.


[User] Please transcribe this text

[Assistant] And when he came out, they said, how did you do this? He said, I always believed that I was going to get out.


[User] Please transcribe this text

[Assistant] And he said, well, other people believed that they were going to get out. He said, but they believed that they were going to get out at Christmas. And when Christmas came and it didn't happen, then they lost hope thereafter.


[User] Please transcribe this text

[Assistant] I believe that at some point I was going to get out and I never lost that faith.


[User] Please transcribe this text

[Assistant] You had the faith. And I confronted the brutal facts that they were not probably going to let me out at Christmas.


[User] Please transcribe this text

[Assistant] And what was I gonna do to keep my sanity and to get there over time? So this is a, a, a really good, uhm, a good thing.


[User] Please transcribe this text

[Assistant] To think about when you're there. Don't sell your troops on false hopes that you could get into trouble on. Don't kid yourself. Be optimistic about the future, but realistic about today with fact-based analysis. The hedgehog concept


[User] Please transcribe this text

[Assistant] Is, is basically, you know, this is what we do. And, and those of you who have seen in my office, I have the, the one.


[User] Please transcribe this text

[Assistant] And then anything else we do is extra, you know, is superfluous. We're not gonna get involved. That's a hedgehog. The hedgehog does one thing and when someone comes to attack them, they just roll up into a ball and they can't be attacked by


[User] Please transcribe this text

[Assistant] More agile animals who are better and then they just leave.


[User] Please transcribe this text

[Assistant] So you do, figure out what you want to do and ignore the rest. The culture of discipline means is that


[User] Please transcribe this text

[Assistant] As a leader, you have to be accountable for what you do.


[User] Please transcribe this text

[Assistant] And then you have to hold other people accountable for what they do.


[User] Please transcribe this text

[Assistant] And if they say they're gonna get something done, then that's a culture of discipline, and they need to get that done. Because...


[User] Please transcribe this text

[Assistant] There's many interdependencies. If they don't get it done, then there has to be a communication as early as possible that this isn't going to work.


[User] Please transcribe this text

[Assistant] This culture of discipline is extremely important. And then successful companies use the latest technology to succeed. And that's what he talks about. And you all should be very good at that and you should continue to embrace that in your companies.


[User] Please transcribe this text

[Assistant] Okay, so basically in this book, when you look at it by the way, you'll see that he has this diagram, and this is basically a positive feedback loop.


[User] Please transcribe this text

[Assistant] So that as you develop a hedgehog concept that you're gonna stick to, you get visible results related to that, people believe in the results, and they build up more momentum, and you get more progress, and you start building up this, and it takes off.


[User] Please transcribe this text

[Assistant] There's your positive feedback loop. This is the negative feedback loop. If you ignore those types of things, you get into negative feedback loop. Okay. So, a little behind schedule. So what we wanted to do was just kind of skim across


[User] Please transcribe this text

[Assistant] Do you have those four elements? Do you have a personal change signature, which we're going to talk about this afternoon in culture?


[User] Please transcribe this text

[Assistant] Then secondly, systems. Don't think in a linear, if you start thinking in a linear way,


[User] Please transcribe this text

[Assistant] Guess what? No one else is going to think in that more systematic way.


[User] Please transcribe this text

[Assistant] You're the leader. So you have to think in a systematic way. What are the long term? I'm gonna think long term, and you saw that Jeff, for those of you who haven't seen it, Jeff Bezos, always think in the long term. He says I only know a few things, and one of them is


[User] Please transcribe this text

[Assistant] The customer, the customer, the customer. Second thing is, always think in the long term.


[User] Please transcribe this text

[Assistant] You're trying to build a great company. And to do that, you have to think of a systems manager.


[User] Please transcribe this text

[Assistant] Man, manner. The third thing is a level five leadership.


[User] Please transcribe this text

[Assistant] The, the, the, the strong will, yet the personal humility to get it done. Some people call this humbition.


[User] Please transcribe this text

[Assistant] Those things I think are well worth it, and they're very, very practical types of things that you can implement in your new venture, and you need to build up those skills and continually think about it. Once you start, your company starts succeeding. So, you know, Jeff, as Lark starts to succeed,


[User] Please transcribe this text

[Assistant] Julia is going to start feeling more and more important. Everyone's coming and saying, whoa, look at this, you know. And it's very natural that she will change in that process. And this is what Obama calls


[User] Please transcribe this text

[Assistant] You know, living in the bubble. You have to get and think about how do you keep those characteristics that make you successful


[User] Please transcribe this text

[Assistant] And not start to deviate from these best practices and things that we're talking about. It's very easy because everyone's telling you, you're great, you've succeeded, you think, well this is easy, uh, and you lose your discipline in leadership.


[User] Please transcribe this text

[Assistant] Okay, so we're gonna take a break, we'll, uhm, how about we come back at 10 minutes to 12, I mean 10 minutes to 11.


[User] Please transcribe this text

[Assistant] Before we go to break, are there any questions in the group? I know we're covering a lot. I'll try to slow down after the break. But I wanted to get off to a good start. So now you know the difference between management and leadership.


[User] Please transcribe this text

[Assistant] Uhm, and we've talked about the relevant leadership model. This is a good basis in which to go forward. Yes?


[User] Please transcribe this text

[Assistant] I would suggest that Malcolm Gladwell, first of all, is a journalist. He's not a rigorous social scientist.


[User] Please transcribe this text

[Assistant] Uhm, so you have to be very careful in this stuff because some of it is not particularly accurate. This book is very, very interesting, uh, outliers about how you have to, it's about timing, it's about hitting the right windows. You know, Bill Gates, Bill Joy, Steve Jobs are all born in the same window


[User] Please transcribe this text

[Assistant] By the way, Gary Kildare was not born, he was born much earlier.


[User] Please transcribe this text

[Assistant] But, and then they get a lot of practice and they anticipate when a market's coming up and they hit the market at the right time with a lot of skill.


[User] Please transcribe this text

[Assistant] You have to have a certain level of intelligence, but do you have the right skills? Did you anticipate the opportunity? And did you take advantage of the window when it opened?


[User] Please transcribe this text

[Assistant] Malcolm Gladwell is a good book. I don't think it's as fundamental as these. The point, you can get a Malcolm, get the Malcolm Gladwell book on tape and listen to it when you're in the car. Alright, we'll be back at ten minutes till eleven. Thanks.


[User] Please transcribe this text

[Assistant] My love, there's so many ways I want to say I love you.


[User] Please transcribe this text

[Assistant] In 1956, a documentary by Jacques Cousteau


[User] Please transcribe this text

[Assistant] And the premise of the title was that the underwater world was a quiet world. We now know 60 years later,


[User] Please transcribe this text

[Assistant] Fish and marine mammals all use sound. They use sound to study their habitat.


[User] Please transcribe this text

[Assistant] To keeping communication with each other. To navigate. To detect predators and prey. And they also use sound by listening.


[User] Please transcribe this text

[Assistant] It's considered a vast, inhospitable place, sometimes described as a desert, because it is so cold and so remote, and ice covered for much of the year. And despite this,


[User] Please transcribe this text

[Assistant] There is no place on earth that I would rather be than the Arctic.


[User] Please transcribe this text

[Assistant] Especially as days lengthen and spring comes. And to me,


[User] Please transcribe this text

[Assistant] The Arctic really embodies this disconnect between what we see on the surface and what's going on underwater.


[User] Please transcribe this text

[Assistant] You can look out across the ice, all white and blue and cold, and see nothing. But if you could hear underwater, the sounds you would hear


[User] Please transcribe this text

[Assistant] And while your eyes are seeing nothing for kilometers but ice, your ears are telling you that out there are bowhead and beluga whales, walrus and bearded seals.


[User] Please transcribe this text

[Assistant] The ice, too, makes sounds. It screeches and cracks and pops and groans as it collides and rubs when temperature or currents or winds change. And under 100 percent sea ice, in the dead of winter, bowhead whales are singing. And you would never expect that, because we humans, we tend to be very visual animals. For most of us, but not all,


[User] Please transcribe this text

[Assistant] Our sense of sight is how we navigate our world. For marine mammals that live underwater,


[User] Please transcribe this text

[Assistant] Where chemical cues and light transmit poorly, sound is the sense by which they see.


[User] Please transcribe this text

[Assistant] And sound transmits very well underwater, much better than it does in air. And so signals can be heard over great distances.


[User] Please transcribe this text

[Assistant] But they also have to listen for cues in the environment that might indicate heavy ice ahead or open water.


[User] Please transcribe this text

[Assistant] So they might listen for thin ice or no ice or listen for echoes off nearby ice.


[User] Please transcribe this text

[Assistant] But when the ice is frozen solid, and there's no big temperature shifts or current changes,


[User] Please transcribe this text

[Assistant] The underwater Arctic has some of the lowest ambient noise levels of the world's oceans. But this is changing.


[User] Please transcribe this text

[Assistant] This is primarily due to a decrease in seasonal sea ice.


[User] Please transcribe this text

[Assistant] Which is a direct result of human greenhouse gas emissions.


[User] Please transcribe this text

[Assistant] We are in effect, with climate change, conducting a completely uncontrolled experiment with our planet.


[User] Please transcribe this text

[Assistant] Over the past 30 years, areas of the Arctic have seen decreases in seasonal sea ice from anywhere from six weeks to four months.


[User] Please transcribe this text

[Assistant] And this decrease in sea ice is sometimes referred to as an increase in the open water season.


[User] Please transcribe this text

[Assistant] That is the time of year when the Arctic is navigable to vessels. And not only is the extent of ice changing, but the age and the width of ice is, too.


[User] Please transcribe this text

[Assistant] Now, you may well have heard that a decrease in seasonal sea ice is causing loss of habitat for animals that rely on sea ice, such as ice seals or walrus or polar bears.


[User] Please transcribe this text

[Assistant] Decreasing sea ice is also causing increased erosion along coastal villages.


[User] Please transcribe this text

[Assistant] And changing prey availability for marine birds and mammals. Climate change.


[User] Please transcribe this text

[Assistant] And decreases in sea ice are also altering the underwater soundscape of the Arctic. Now what do I mean by soundscape?


[User] Please transcribe this text

[Assistant] Those of us who eavesdrop on the oceans for a living use instruments called hydrophones, which are underwater microphones, and we record ambient noise, the noise all around us. And the soundscape describes the different contributors to this noise field.


[User] Please transcribe this text

[Assistant] And what we are hearing on our hydrophones are the very real sounds of climate change. And we are hearing these changes from three fronts. From the air, from the water, and from land. First, air. Wind on water creates waves. These waves make bubbles. The bubbles break. And when they do,


[User] Please transcribe this text

[Assistant] When it's ice covered, most of the noise from wind doesn't make it into the water column, because the ice acts as a buffer between the atmosphere and the water.


[User] Please transcribe this text

[Assistant] And this is one of the reasons that the Arctic can have very low ambient noise levels.


[User] Please transcribe this text

[Assistant] But with decreases in seasonal sea ice, not only is the Arctic now open to this wave noise,


[User] Please transcribe this text

[Assistant] All of this is raising noise levels in a previously quiet ocean. Second, water.


[User] Please transcribe this text

[Assistant] With less seasonal sea ice, subarctic species are moving north and taking advantage of the new habitat that is created by more open water.


[User] Please transcribe this text

[Assistant] Now, Arctic whales, like this bowhead, they have no dorsal fin, because they have evolved to live and swim in ice-covered waters. And having something sticking off of your back is not very conducive to migrating through ice, and may in fact be excluding animals from the ice. But now,


[User] Please transcribe this text

[Assistant] Everywhere we've listened, we're hearing the sounds of fin whales and humpback whales and killer whales further and further north and later and later in the season.


[User] Please transcribe this text

[Assistant] We are hearing, in essence, an invasion of the Arctic by subarctic species. And we don't know what this means.


[User] Please transcribe this text

[Assistant] Will there be competition for food between arctic and subarctic animals?


[User] Please transcribe this text

[Assistant] Might these subarctic species introduce diseases or parasites into the Arctic? And what are the new sounds that they are producing doing to the soundscape underwater? And third, land. And by land, I mean people.


[User] Please transcribe this text

[Assistant] Just this past summer, a massive cruise ship made its way through the Northwest Passage, the once mythical route between Europe and the Pacific.


[User] Please transcribe this text

[Assistant] It has allowed increases in oil and gas exploration and extraction, the potential for commercial shipping as well as increased tourism.


[User] Please transcribe this text

[Assistant] And we now know that ship noise increases levels of stress hormones in whales and can disrupt feeding behavior.


[User] Please transcribe this text

[Assistant] Air guns, which produce loud, low-frequency whoomps every 10 to 20 seconds, change the swimming and vocal behavior of whales.