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#110 Jim Collins: Relationships vs. Transactions

May 4, 2021 1h 13m 20 insights
Renowned researcher and author Jim Collins makes his second appearance on The Knowledge Project, this time to share a wealth of life lessons learned from his mentor and collaborator, Bill Lazier. Jim recently released BE 2.0 (Beyond Entrepreneurship 2.0), an ambitious upgrade of his first book Beyond Entrepreneurship, co-authored with Lazier and focused on effective leadership style. Shane discusses all new topics with Jim in their follow-up conversation, including what it means to be a mentor and a father, why we should trust by default, why we confuse living a long life with a great life, and the difference between being afraid of risk and being afraid of ambiguity. -- Want even more? Members get early access, hand-edited transcripts, member-only episodes, and so much more. Learn more here: https://fs.blog/membership/   Every Sunday our Brain Food newsletter shares timeless insights and ideas that you can use at work and home. Add it to your inbox: https://fs.blog/newsletter/   Follow Shane on Twitter at: https://twitter.com/ShaneAParrish
Actionable Insights

1. Embrace Stockdale Paradox

Maintain unwavering faith that you will ultimately prevail, while simultaneously confronting the most brutal facts of your current reality. This duality is critical for enduring desperate times without capitulating to despair.

2. Prioritize Relationships, Not Transactions

Focus on building deep relationships rather than transactional interactions, as Bill believed this is the only way to have a truly great life. Strive for relationships where both parties feel they benefit more by giving.

3. Adopt an Opening Bid of Trust

Assume others are trustworthy by default, as this attracts the best people and encourages trustworthy behavior. While acknowledging trust can be abused, the overall upside outweighs the downside, but avoid catastrophic exposure.

4. Practice Forgiveness, Let Go

Forgive others, especially if their actions are not malicious, by letting go of anger and resentment. Consider that actions might stem from misunderstanding or incompetence rather than ill intent, which is liberating.

5. Live a Great, Not Just Long, Life

Focus on the quality of integrated moments throughout your life, recognizing that time accelerates and life is short. This perspective helps prioritize what truly makes life meaningful and fulfilling.

6. Put the Butter on Your Waffles

Inject fun and enjoyment into your work and daily activities. If something isn’t fun, find a way to make it enjoyable or consider stopping, as life’s moments are precious and fleeting.

7. Create a Personal Board of Directors

Proactively choose mentors and advisors based on their values and character, not just success, to serve as a moral compass. This helps shape your character and provides guidance for a values-based life.

8. Read Biographies for Life Lessons

Read many biographies (e.g., 100) to gain insights from the entire arc of diverse lives. This method provides a rich source of wisdom and patterns for self-direction and self-molding.

9. Seek and Cherish Mentor Moments

Actively seek out and deeply value interactions with mentors, treating these moments as ‘sapphires’ or ‘pure drops of gold.’ Allow these insights to profoundly influence and shape your life.

10. Evolve Your Mentorship Network

As you age, adapt your network of trusted advisors and accountability partners (e.g., ‘personal band of brothers’). These individuals, regardless of age, can hold you to account and support your growth.

11. Time Decisions by Risk Change

Determine how much time you have before risks associated with a decision change, then make your decision within that timeframe. This approach uses empirical evidence and analysis to inform clear, decisive action without rushing or delaying unnecessarily.

12. Conduct Autopsies Without Blame

When outcomes are adverse, analyze what happened to gain understanding and refine future processes, assuming people did their best. This fosters a culture of learning and prevents indecision driven by fear of blame.

13. Embrace Disagreement in Decisions

Encourage robust dialogue, debate, and argument before making significant decisions, rather than seeking consensus. Great decisions often emerge from substantial disagreement, leading to clarity and unified commitment.

14. Challenge Ambiguity Aversion

Reframe your perception of risk by recognizing that traditional jobs can be highly undiversified and risky. Entrepreneurial paths, while ambiguous, can offer more control and diversification, potentially being less risky in the long run.

15. Understand ‘Why’ Behind Procedures

Don’t just follow recipes or procedures mindlessly; deeply understand the underlying rationale and reasons for their existence. This enables intelligent adaptation and evolution of the system when circumstances change.

16. Empower Best Judgment

Within a well-understood, replicable system, trust and empower individuals to use their best judgment in specific situations. This combines disciplined execution with individual autonomy for optimal outcomes.

17. Become a Great Teacher

Develop such a deep understanding of your craft or business that you can effectively teach its underlying principles and rationale. The ability to teach is a strong indicator of true mastery and understanding.

18. Identify Your Flywheel’s Starting Point

Clearly define the ‘12 o’clock point’ of your flywheel, which is where your core value creation begins. This provides strategic clarity and a powerful signal for your overall endeavor.

19. Separate ‘Doing’ from ‘Fueling’

Distinguish between the part of your flywheel that creates value and contributes to the world (12-6 o’clock) and the part that generates resources or ‘fuel’ (6-12 o’clock). This helps optimize both aspects for sustained momentum.

20. Decide: Built to Last or Flip?

Address the existential question of whether your endeavor’s purpose is to generate fuel to be siphoned off (built to flip) or to be reinvested to make the flywheel bigger and more impactful over time (built to last).