Trillion Dollar Coach

This is book on Bill Campbell, who worked as coaches for several CEO’s from Steve Jobs to Eric Schmidt, the book covers the management and leadership principles and how Bill coached several leaders, with some interesting stories. The following is a highlight of things I found interesting in the book,

Trillion Dollar Coach
  • Your Title Makes You a Manager. Your People Make You a Leader.
  • There is another, equally critical, factor for success in companies: teams that act as communities, integrating interests and putting aside differences to be individually and collectively obsessed with what’s good for the company. Research shows that when people feel like they are part of a supportive community at work, they are more engaged with their jobs and more productive. Conversely, a lack of community is a leading factor in job burnout.
  • It’s not possible or practical to hire a coach for every team in the company, nor is it the right answer, because the best coach for any team is the manager who leads that team. Being a good coach is essential to being a good manager and leader. Coaching is no longer a specialty; you cannot be a good manager without being a good coach.
  • The path to success in a fast-moving, highly competitive, technology-driven business world is to form highperforming teams and give them the resources and freedom to do great things. And an essential component of high-performing teams is a leader who is both a savvy manager and a caring coach.
  • People who are successful run their companies well. They have good processes, they make sure their people are accountable, they know how to hire great people, how to evaluate them and give them feedback, and they pay them well.”
  • “How do you bring people around and help them flourish in your environment? It’s not by being a dictator. It’s not by telling them what the hell to do. It’s making sure that they feel valued by being in the room with you. Listen. Pay attention. This is what great managers do.”
  • Bill had been a big shot at Apple, VP of sales and marketing, and had been very successful at Kodak. In both companies he had been detail oriented, frequently micromanaging his team members. That worked pretty well, so when he took on the CEO role at Claris, he figured it was his job to tell everyone what to do. Which he did. Late one afternoon Donna dropped by Bill’s office and told him that if he was going to tell everyone what to do, they were all going to quit and go back to Apple. No one wanted to work for a dictator. She added a bit more wisdom for the first-time CEO: “Bill, your title makes you a manager; your people make you a leader.
  • People are the foundation of any company’s success. The primary job of each manager is to help people be more effective in their job and to grow and develop. We have great people who want to do well, are capable of doing great things, and come to work fired up to do them. Great people flourish in an environment that liberates and amplifies that energy. Managers create this environment through support, respect, and trust.
  • Respect means understanding people’s unique career goals and being sensitive to their life choices. It means helping people achieve these career goals in a way that’s consistent with the needs of the company.
  • Trust means freeing people to do their jobs and to make decisions. It means knowing people want to do well and believing that they will.
  • “What keeps you up at night?” is a traditional question asked of executives. For Bill the answer was always the same: the well-being and success of his people.
  • Eric did one thing different from the norm, though: when everyone had come into the room and gotten settled, he’d start by asking what people did for the weekend, or, if they had just come back from a trip, he’d ask for an informal trip report.
  • The objectives were twofold. First, for team members to get to know each other as people, with families and interesting lives outside of work. And second, to get everyone involved in the meeting from the outset in a fun way.
  • Bill had us pay close attention to running meetings well; “get the 1:1 right” and “get the staff meeting right” are tops on the list of his most important management principles.
  • “Use meetings to get everyone on the same page, get to the right debate, and make decisions.”
  • MANAGEMENT/LEADERSHIP: • Are you guiding/coaching your people? • Are you weeding out the bad ones? • Are you working hard at hiring? • Are you able to get your people to do heroic things?
  • INNOVATION (BEST PRACTICES) • Are you constantly moving ahead … thinking about how to continually get better? • Are you constantly evaluating new technologies, new products, new practices? • Do you measure yourself against the best in the industry/world?
  • He believed in striving for the best idea, not consensus (“I hate consensus!” he would growl), intuitively understanding what numerous academic studies have shown: that the goal of consensus leads to “groupthink” and inferior decisions.
  • Bill gave her a new rule: when she was discussing a decision with her team, as aleader she always had to be the last person to speak. You may know the answer and you may be right, he said, but when you just blurt it out, you have robbed the team of the chance to come together. Getting to the right answer is important, but having the whole team get there is just as important. So Marissa sat, uncharacteristically quiet, while her team debated issues. She didn’t like it, but it worked. She gained new respect for her team and their ability to handle problems.
  • LEAD BASED ON FIRST PRINCIPLES DEFINE THE “FIRST PRINCIPLES” FOR THE SITUATION, THE IMMUTABLE TRUTHS THAT ARE THE FOUNDATION FOR THE COMPANY OR PRODUCT, AND HELP GUIDE THE DECISION FROM THOSE PRINCIPLES.
  • Compensation isn’t just about the economic value of the money; it’s about the emotional value. It’s a signaling device for recognition, respect, and status, and it ties people strongly to the goals of the company. Bill knew that everyone is human and needs to be appreciated, including people who are already financially secure. This is why the superstar athlete who is worth tens or hundreds of millions pushes for that next huge contract. It’s not for the money; it’s for the love.
  • COMPENSATING PEOPLE WELL DEMONSTRATES LOVE AND RESPECT AND TIES THEM STRONGLY TO THE GOALS OF THE COMPANY.
  • This means that finance, sales, or marketing shouldn’t tell the product teams what to do. Instead, these groups can supply intelligence on what customer problems need solving, and what opportunities they see. They describe the market part of “product market fit.” Then they stand by, let the product teams work, and clear the way of things that might slow them down. As Bill often commented, “Why is marketing losing its clout?Because it forgot its first name: product.”
  • Bill told the poor product manager, if you ever tell an engineer at Intuit which features you want, I’m going to throw you out on the street. You tell them what problem the consumer has. You give them context on who the consumer is. Then let them figure out the features. They will provide you with a far better solution than you’ll ever get by telling them what to build.
  • INNOVATION IS WHERE THE CRAZY PEOPLE HAVE STATURE THE PURPOSE OF A COMPANY IS TO BRING A PRODUCT VISION TO LIFE. ALL THE OTHER COMPONENTS ARE IN SERVICE TO PRODUCT.
  • Board meetings fail when the CEO doesn’t own and follow her agenda. That agenda should always start with operational updates: the board needs to know how the company is doing. That includes financial and sales reports, product status, and metrics around operational rigor (hiring, communications, marketing, support). If the board has committees, for example to oversee audit and finance or compensation, have those committees meet ahead of time (in person or via phone or video conference) and present updates at the board meeting. The first order of business always needs to be a frank, open, succinct discussion about how the company is performing.
  • In our board meetings at Google, Bill always pushed Eric to ensure that the operations review included a thorough set of highlights and lowlights. Here’s what we did well and what we’re proud of; here’s what we didn’t do so well. The highlights were always easy to compile; teams love dressing up their best successes and presenting them to the board. But the lowlights, not so much. It can take some prodding to make teams be completely frank about where they are falling short, and indeed, Eric often rejected an initial draft of the board lowlights for not being honest enough. He was dogged in ensuring that the lowlights were authentic, and as a result, the board would see the bad news along with the good.
  • And he did it through practicing the points covered in this chapter: operational excellence, putting people first, being decisive, communicating well, knowing how to get the most out of even the most challenging people, focusing on product excellence, and treating people well when they are let go.
  • For example, a highly cited 2000 study from Cornell University discusses the correlation between task conflict (disagreements about decisions) and relationship conflict (emotional friction) in teams. Task conflict is healthy and is important to get to the best decisions, but it is highly correlated with relationship conflict, which leads to poorer decisions and morale. What to do? Build trust first, the study concludes. Teams that trust each other will still have disagreements, but when they do, they will be accompanied by less emotional rancor
  • Red Auerbach, who as a coach and executive led the Boston Celtics to sixteen NBA championships in thirty years (including a remarkable eight straight), had a simple way of expressing the importance of trust: “The players won’t con me because I don’t con them.”
  • Team psychological safety, according to a 1999 Cornell study, is a “shared belief held by members of a team that the team is safe for interpersonal risk taking … a team climate … in which people are comfortable being themselves.” This is exactly the feeling we experienced when working with Bill; he quickly established a relationship where we could be ourselves, without fear. Not surprisingly, when Google conducted a study to determine the factors behind high-performing teams, psychological safety came out at the top of the list.fn1 The common notions that the best teams are made up of people with complementary skill sets or similar personalities were disproven; the best teams are the ones with the most psychological safety. And that starts with trust.
  • Leadership is not about you, it’s about service to something bigger: the company, the team.
  • ONLY COACH THE COACHABLE THE TRAITS THAT MAKE A PERSON COACHABLE INCLUDE HONESTY AND HUMILITY, THE WILLINGNESS TO PERSEVERE AND WORK HARD, AND A CONSTANT OPENNESS TO LEARNING.
  • PRACTICE FREE-FORM LISTENING LISTEN TO PEOPLE WITH YOUR FULL AND UNDIVIDED ATTENTION—DON’T THINK AHEAD TO WHAT YOU’RE GOING TO SAY NEXT—AND ASK QUESTIONS TO GET TO THE REAL ISSUE.
  • NO GAP BETWEEN STATEMENTS AND FACT BE RELENTLESSLY HONEST AND CANDID, COUPLE NEGATIVE FEEDBACK WITH CARING, GIVE FEEDBACK AS SOON AS POSSIBLE, AND IF THE FEEDBACK IS NEGATIVE, DELIVER IT PRIVATELY.
  • WORK THE TEAM, THEN THE PROBLEM WHEN FACED WITH A PROBLEM OR OPPORTUNITY, THE FIRST STEP IS TO ENSURE THE RIGHT TEAM IS IN PLACE AND WORKING ON IT.

Give a follow in twitter to stay update with my posts @diny87