Steven Levitt: Find your niche

Steven Levitt, author of Freakonomics and celebrated economist, kicked off the second day of the World Business Forum inside New York's Radio City Music Hall. He engaged us with his Malcom-Gladwell style of storytelling (“I want to start by telling you story about a man named John Salvaggio…”) and self-effacing humor (“I’m an irrelevant economist.”). He told entertaining stories that ranged from the IRS to prostitution to convey his key messages – innovative ideas are simple and obvious, admit you don’t know when you don’t know, people in business need to think more, social incentives are usually more effective than financial incentives. But it was his personal story about how he got to where he is today – and the key learning we can all pull from it – that most grabbed us.

Steve had dreamed of becoming an important economist – an economist like Alan Greenspan who could move markets with mere words. But there was one problem – he wasn’t good at math. His high school teacher told him that his AP math score was the lowest of any of her students… ever. (He still doesn’t know how he got into MIT’s graduate economics program, having only taken Math 1A at Harvard as an undergrad). Soon after entering MIT, he knew he was in over his head. He seriously considered a different path.

His father gave him an inspirational talk, Steve said, “for the first and only time” of his life. His father said that when he began his own career as a medical researcher, his boss, a well-renowned doctor in medical research, told him he didn’t have what it takes to be a medical researcher. Then, the renowned doctor advised Steve’s father to focus on an area of research that nobody else was focusing on – intestinal gas (true story). Steve’s father did just that – and became the world’s foremost expert on intestinal gas (when Steve was in high school, GQ featured his father in a two-page spread entitled, much to Steve’s chagrin, “The King of Farts.”).

With that, Steve received the moral of the story from his father: “I have no talent. You have no talent,” to which the audience erupted in laughter. Steve, channeling his father, continued, “If you want to succeed, you’ve got to find topics that are so embarrassing, so undignified,” the crowd roared again, “that other more talented people in your field wouldn’t do it.”

As entertaining as Steve’s story was, it contains a powerful message – to be successful, you’ve got to find your niche. In fact, the message was similar to one of the many insights Jim Collins highlighted the day before. Jim had described the hedgehog concept, the idea that a fulfilling career is one in which you:
* Do what you love (What do you love?)
* Can be the best in the world at it (When you do it, do you feel you are made to do it?)
* Drive our economic engine (Are you useful in a way society values (not necessarily profit)?)

Steve Levitt, while not Alan Greenspan, has become famous for making economics mainstream with accessible language and engaging stories. He’s also a lot smarter than he gives himself credit for. He found his niche, and he’s an incredible success because of it.

Bill George: Play Your Game, Not Theirs

We recently spoke with Bill George, widely known for his classic book on leadership, True North: Discover your Authentic Leadership. He's also a Harvard Business School Professor and the former, storied CEO of Medtronics, the world’s largest medical technology company (think pacemaker). You can see him at the World Economic Forum in late January as a panelist on leadership.

Bill is not your typical CEO or Business School Professor. He doesn’t shy away from ideas of vulnerability, self-reflection, or even counseling. In fact, he sees them as sources of power, not weakness.

Bill preaches about the importance of knowing who we are (awareness), being open about it (vulnerability), and sticking to it (commitment) in the choices we make in life and as a leader. It’s when we do these things that we’re strong enough to resist temptations of “short-termism” – that is, the temptation of immediate gratification over the more sustainable long view.

Take the recent economic meltdown. Bill believes it was caused, not by sub-prime mortgages, but by “sub-prime leadership.” Too many people got caught up in the short term, more concerned about keeping up with the corporate Joneses and meeting Wall Street expectations than with the long-term health of their own companies. Bill is convinced that “if you play Wall Street’s game, you will destroy your company.” Look at Citibank, AIG, and countless others.

That said, it’s difficult to not play the game. Does a leader really even have a choice? What can one leader do in the face of such powerful forces as competitive pressure, fiduciary responsibility, and Wall Street expectations?

Bill’s response is simple: “Just don’t play [the game]. Just say no.” Simply say “we are in the business of building long-term shareholder value” and go about doing it. That’s what he did at Medtronic. And the long-term health and strength of the company has benefited greatly. Not right away, but in the end, when it matters.

There’s a personal parable in all of this. In our career choices and lives in general, we’ve got to be strong enough to take the long view over the short one. We’ve got to know who we are, be honest about it, and make decisions from there, decisions that lead to sustainable personal growth, not dramatic falls.

Taken together, Bill’s philosophy is a virtuous assault on conventional wisdom, a wisdom – propagated by mainstream media and corporate culture – that tells us to “[try] to make a good impression and not show them who you really are.”

He is not naïve, however, about the difficulty of defying conventional wisdom. In fact, he says, “If you share your vulnerabilities and weaknesses, you figure you won’t get hired. And maybe you won’t. I think that’s the problem."

So how do we overcome this problem, the powerful forces against being who we are? Unfortunately, the answer isn’t clear. It’s a matter of personal choices and values. Bill admits that we can reach success if we play the short-term game or hide who we are. But the chances of it being sustainable are slim. It will likely lead to a fall, more precipitous and more probable than if we played it right.

Bill’s view on failure is similar to that of luminaries we’ve already spoken to – it’s more a blessing than a curse. The key is whether we learn from it or not. Bill believes, “early failures are one of the greatest learning tools you can have.” We try hard not to fail early in our lives and careers. But the earlier we fail, the earlier we learn and the more we avoid self-destructive behavior later on. Bill reminds us that “the greatest failure of all [is] the failure to take risks to be who you are.”

When we do fail, Bill implores us to not simply blame others and move on, but rather, look internally. Own it. Make the necessary changes. And then move on. Stronger.

Listen to our full interview with Bill to find out more about him, including:
- His personal epiphany
- His relationship to luck
- His view of social media
- His take on Bill Clinton and Sandy Weill

Bill George: A Lesson in Authentic Leadership

Bill George, former CEO of Medtronics, current Harvard professor and best-selling author of the game-changing leadership book True North: Discover Your Authentic Leadership, was the opening speaker at the World Business Forum. His style, while reserve, exudes experience and drips professorial. He shared a number of stories with the 4,000+-strong crowd here at the Forum, highlighting signs of authentic and lasting leadership – CEO accountability in the cases of Mattel and JetBlue, Bold decision-making at Goldman Sachs before the Great Recession. But what struck us most came at the end of his speech. It wasn’t about case studies of respected companies or the company boards on which he sits. He shared his personal story with an unusual, and much appreciated, amount of vulnerability.

Bill taught us a lesson about ego and how he overcame his to become a leading expert and thought-shaper on leadership. He told us about being “The Number Two” at Honeywell, in line to become CEO of one of the world’s largest and most respected companies. Bill had been at Honeywell for 10 years. He was trying to impress his colleagues and his board. He wanted them to choose him as the next CEO. But something didn’t feel right. He even wore cuff links (which he didn’t like). He would talk to his wife about it at home. A relatively small biotech company, Medtronics, approached him several times to run their company, but they were too small. He kept saying no. His ego wanted to run a large company.

Finally he met with Medtronics. He was surprised by his reaction. He felt at home and loved the mission of their work. He left Honeywell to lead Medtronics, taking the $1B company to $60B in market value in 10 years. Now, he’s on the board – or has been on the board – of several corporate stalwarts (Goldman Sachs, Exxon Mobil, Target, Novartis) and is an international powerhouse in the field of leadership.

It’s unclear whether Bill made the move to Medtronics because he wasn’t going to make CEO at Honeywell or because Medtronics just felt like a better fit for him. But we do know that he shared with us a piece of his personal story that not many CEOs would have shared. And more importantly, his story proves that when you leave that which doesn’t feel right for something that does, good things will happen. It all comes back to passion. Follow it... by definition, it’s right.