#361: Jim Collins — A Rare Interview with a Reclusive Polymath

Brought to you by Peloton https://www.onepeloton.com/ and LinkedIn Jobs https://LinkedIn.com/Tim. "I'm not really a business author; I just happen to have used companies as the method to study human systems because there's great data." — Jim Collins My guest for this episode is the incredible (and somewhat reclusive) Jim Collins. This was a rare treat, as Jim rarely does any media or interviews. I’ve wanted to speak with him for more than a decade, and it was worth the wait. This conversation overdelivered on every level. I hope you enjoy it as much as I did. So, who is Jim Collins? Jim Collins (jimcollins.com http://jimcollins.com) is a student and teacher of what makes great companies tick, and a Socratic advisor to leaders in the business and social sectors. He has authored or coauthored eight books that have together sold 10+ million copies worldwide, including Good to Great https://www.amazon.com/Good-Great-Some-Companies-Others/dp/0066620996/ref=as_li_ss_tl?keywords=Good+to+Great&qid=1550437620&s=gateway&sr=8-1&linkCode=ll1&tag=offsitoftimfe-20&linkId=6a0b4672b9a46178a2cb524ec47ca70b&language=en_US, Good to Great and the Social Sectors https://www.amazon.com/Good-Great-Social-Sectors-Business/dp/0977326403/ref=as_li_ss_tl?keywords=Good+to+Great+and+the+Social+Sectors&qid=1550437652&s=gateway&sr=8-1&linkCode=ll1&tag=offsitoftimfe-20&linkId=9297cc5c0c92311ea6d570c648b7b3a7&language=en_US, Built to Last https://www.amazon.com/Built-Last-Successful-Visionary-Companies/dp/0060566108/ref=as_li_ss_tl?keywords=Built+to+Last&qid=1550437689&s=gateway&sr=8-2&linkCode=ll1&tag=offsitoftimfe-20&linkId=edb7aa371f472f284fd80ae9e72ea93e&language=en_US, How the Mighty Fall https://www.amazon.com/How-Mighty-Fall-Companies-Never/dp/0977326411/ref=as_li_ss_tl?keywords=How+the+Mighty+Fall&qid=1550437730&s=gateway&sr=8-1&linkCode=ll1&tag=offsitoftimfe-20&linkId=4bcbd1d3b61d25127bc8b2e751536b6e&language=en_US, Great by Choice https://www.amazon.com/Great-Choice-Uncertainty-Luck-Why-Despite/dp/0062120999/ref=as_li_ss_tl?keywords=Great+by+Choice&qid=1550437776&s=gateway&sr=8-1&linkCode=ll1&tag=offsitoftimfe-20&linkId=49193e3af6145e5bd719a9bdbc452c1a&language=en_US, and his newest work, Turning the Flywheel https://www.amazon.com/Turning-Flywheel-Monograph-Accompany-Great/dp/0062933795/ref=as_li_ss_tl?keywords=Turning+the+Flywheel&qid=1550437815&s=gateway&sr=8-2&linkCode=ll1&tag=offsitoftimfe-20&linkId=09b3417688cf0fe96bdf93364007cdb0&language=en_US. Driven by a relentless curiosity, Jim began his research and teaching career on the faculty at the Stanford Graduate School of Business, where he received the Distinguished Teaching Award in 1992. In 1995, he founded a management laboratory in Boulder, Colorado. In 2017, Forbes selected Jim as one of the 100 Greatest Living Business Minds https://www.forbes.com/100-greatest-business-minds/person/jim-collins. Jim is also an avid rock climber and has completed single-day ascents of El Capitan https://www.yosemite.com/what-to-do/el-capitan/ and Half Dome https://www.yosemite.com/what-to-do/climbing-half-dome/ in Yosemite Valley. Enjoy! Click here for the show notes for this episode. https://tim.blog/2019/02/18/jim-collins/?utm_source=podcast&utm_medium=podcast&utm_campaign=podcast-description This episode is brought to you by LinkedIn https://LinkedIn.com/Tim and its job recruitment platform, which offers a smarter system for the hiring process. If you've ever hired anyone (or attempted to), you know finding the right people can be difficult. If you don't have a direct referral from someone you trust, you're left to use job boards that don't offer any real-world networking approach. LinkedIn https://LinkedIn.com/Tim, as the world's largest professional network -- used by more than 70 percent of the US workforce -- has a built-in ecosystem that allows you to not only search for employees, but also interact with them, their connections, and their former employers and colleagues in a way that closely mimics real-life communication. Visit LinkedIn.com/Tim https://LinkedIn.com/Tim and receive a $50 credit toward your first job post! This podcast is also brought to you by Peloton https://www.onepeloton.com/, which has become a staple of my daily routine. I picked up this bike after seeing the success of my friend Kevin Rose, and I've been enjoying it more than I ever imagined. 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Speaker names marked ? are inferred from speaking time and the show’s known hosts — they are not voice-verified.

• 0:01Speaker 00

  At this altitude, I can run flat out for a half mile before my hands start shaking. Can I ask you a personal question?

• 0:08Speaker 01

  No, I would have seen it before.

• 0:12Speaker 00

  I'm a cybernetic organism, living tissue over metal endoskeleton.

• 0:23Tim Ferriss?

  This episode of The Tim Ferriss Show is brought to you by LinkedIn. The right hire can make a huge impact on your business. The wrong hire can create your business. And I have seen example after example from thousands of my readers, at a minimum, where they have told me stories of how finding the right person at the right time, and in some cases, not even asking, "What should I do?", but asking, "Who should I find?", because that person can help me determine what exactly to do more intelligently. And I've had a chance to hire two such people in the last year, and that has just made my business take a quantum leap forward,

• 1:03Tim Ferriss?

  and my complexity in my personal and business life gets cut dramatically. And this type of simplification cannot be overvalued. We think a lot about hiring, and I think a lot about hiring, and it is a skill that I've had to learn. It is important to find the right person. But where do you find that person? You can post a job on a job board and hope that that right person finds your job, that they are on the internet, happening to scan something here and there, and then find you. But, think about it, how often do you hang out on job boards? The answer is probably not very often. So don't leave finding someone great to chance, when you can post your job exactly where people go every day to make connections, grow in their careers, and discover job opportunities.

• 1:47Tim Ferriss?

  That is LinkedIn. Most LinkedIn members haven't recently visited the top job boards, but nine out of 10 members are open to new opportunities. And with 70% of the US workforce on LinkedIn, posting there is the best way to get your job opportunity in front of more of the right people. And you can be very, very highly targeted and specific. People who are qualified for the role you have and ready for something new. This is where you find them. It's the best way to find that person, that key person who will help you grow your business. And this is why a new hire is made every 10 seconds using LinkedIn. That's bonkers, every 10 seconds. So head to LinkedIn.com forward slash Tim and get $50 off your first job post.

• 2:31Tim Ferriss?

  That's LinkedIn.com forward slash Tim, T I M, to get $50 off your first job post. LinkedIn.com forward slash Tim. Take a look. Terms and conditions do apply. This episode is brought to you by Peloton, which I've been using probably for about a year now. Peloton is a cutting-edge indoor cycling bike that brings live studio classes right into your home. You can also do on-demand, which is what I do, we'll come back to that. So you don't have to worry about fitting classes into a busy schedule or making it to a studio or gym with a hectic or unpredictable commute. I, for instance, have a Peloton bike right in my master bedroom at home, and it's one of the first things I do many mornings.

• 3:13Tim Ferriss?

  I wake up, I meditate for a bit, then I knock out a short 20-minute ride in my undies, hard to do that at the gym, take a shower, and I'm in higher gear for the rest of the day. It's really convenient and has become something that I look forward to. So you have a lot of options. For one, if you like, you can ride live with thousands of other riders across the country on an interactive leaderboard to keep you motivated. There are also up to 14 new classes added every day with more than 8,000 classes on demand, and you can pick based on length, 45 minutes, 20 minutes, whatever, music, hip-hop, rock and roll, or say, low-impact versus high-intensity or interval. You can pick the class structure and style that works for you. And in my case, I quite like Matt Wilpers, and I tend to do on-demand and listen to

• 3:57Tim Ferriss?

  a lot of and watch many of the same classes over and over, but I'm kind of promiscuous and also enjoy classes from a lot of the other instructors. They have Peloton, an amazing roster of incredible instructors in New York City with a whole range of styles and personalities, so you can find what you're in the mood for. You also get real-time metrics that you can use to track your performance over time, and that will help, I would say, catalyze- ...you to beat your personal best. Now that all sounds good, right? Gamification, yada, yada, yada. I didn't think that it would work for me or in any way incentivize me, but they really 100% hit the nail on the head. I was very, very impressed with how motivating it was and it worked tremendously to keep me pushing, uh, which quite honestly takes a fair

• 4:41Tim Ferriss?

  amount. I can get quite lazy, particularly with anything that edges on endurance, which is kind of more than five reps of anything for me. So check it out. Discover this cutting-edge indoor cycling bike that brings the studio experience right to your home. Peloton is offering listeners of this podcast a limited time offer. Go to onepeloton.com, that's O-N-E peloton, P-E-L-O-T-O-N dot com, and enter the code TIM, all caps, at checkout and get $100 off of accessories with your Peloton bike purchase. So get a great workout at home anytime you want. Check it out. Go to onepeloton.com and use the code TIM to get started.

• 5:24Tim Ferriss?

  Well, hello, boys and girls. This is Tim Ferriss and welcome to another episode of the Tim Ferriss Show where it is my job each episode to deconstruct, tease out the habits and routines, best practices, life lessons, and so on, from world-class performers from many, many different disciplines. My guest today is Jim Collins, and this is a rare treat because Jim very, very seldom does any media or interviews whatsoever. I have wanted to speak with him for more than a decade, in fact, and it was worth the wait. This conversation over-delivered on every level I can imagine, and I really hope you enjoy it as much as I did. So who is Jim Collins? This mysterious, reclusive, mastermind,

• 6:09Tim Ferriss?

  polymath. Jim Collins is a student and teacher of what makes great companies tick and a Socratic advisor. We'll get a better idea of what that means, particularly in the beginning of the interview where he wants to ask me questions. So we do get to Jim's story, but he wants to and wanted to, even before we started recording, ask me a few questions. So let me get back to The bio, he is student and teacher of what makes great companies tick. And that is an understatement. He really has has delved into the data. And a Socratic advisor to leaders in the business and social sectors. He's authored or co-authored eight books that have together sold more than 10 million copies worldwide. That's a lot of books, including Good to Great, Good to Great in the Social Sectors,

• 6:51Tim Ferriss?

  Built to Last, How the Mighty Fall, Great by Choice, and his newest work, Turning the Flywheel, which gets into all sorts of details about the self-perpetuating in some ways models behind Amazon, Vanguard, and so on. Fascinating concept and very practical examples. Driven by a relentless curiosity, which you will get front row seats for, Jim began his research and teaching career on the faculty at the Stanford Graduate School of Business, where he received the Distinguished Teaching Award in 1992. In 1995, he founded a management laboratory in Boulder, Colorado. In 2017, Forbes selected Jim as one of the 100 greatest living business minds. And we talk about not just what makes good companies great.

• 7:36Tim Ferriss?

  We get into that a bit, but really we're digging into Jim himself. We talk about how he tracks time, how he breaks up his day, his sleep optimization, his stories related to Peter Drucker, which are just amazing, and so on and so forth. He's also, as I might have already inferred, multifaceted and multi-talented. He's an avid rock climber, as one example, and has completed single day ascents of El Capitan and Half Dome in Yosemite Valley. And if you don't know what that means, just take my word for it. It's very impressive. You can find more about Jim at JimCollins.com. And now, without further ado, please enjoy, and I certainly enjoyed it, please enjoy this wide-ranging conversation with none other than Jim Collins.

• 8:24Tim Ferriss?

  Jim, welcome to the show.

• 8:26Jim Collins?

  I'm really happy to be here and I'm hoping that you wouldn't mind if I start by exercising a bit of my own curiosity just to ask you some questions to begin our conversation.

• 8:39Tim Ferriss?

  I would, I would love to jump into it any way that you would like, so I'm game for questions.

• 8:45Jim Collins?

  So, I, I, I'm dying to ask, what did you do your Princeton senior thesis on?

• 8:52Tim Ferriss?

  My senior thesis, which took some extra time to complete, was on the phonetic and semantic acquisition of Chinese characters by native English speakers. And it was looking at language acquisition, but specifically what most people in the West would consider idiograms. And there are a few different layers of meaning or context for each character that one might acquire, so the thesis was about the different approaches, the pros and cons of various methods for acquiring these characters.

• 9:29Jim Collins?

  And, and what is language acquisition? It's a, it's a, it's a major I've never quite heard of, and I'd be curious what its essence is.

• 9:38Tim Ferriss?

  So, within the East Asian Studies Department, you had to pick a primary language, and I, I chose Japanese because I had spent a year in high school in Japan, going to a Japanese school as an exchange student, but I ended up taking primarily Chinese classes because my, my Japanese level was already decently high. And within the context of that department, language acquisition would be focusing on, and this is really good, it's a, it's a very good question, because the way that I look at language is really acquiring... Concepts and a almost an operating system for thinking that is associated with

• 10:23Tim Ferriss?

  a different culture. And that would generally in say a language like Chinese and most languages start with the phonemes, the sounds themselves. And in the case of something tonal like Mandarin, you're actually going to be doing a lot of training. It's almost like going to the gym and lifting weights because to produce a sound like or a word like yeeshu, which is maybe, or if you wanted to ask with a retroflexive tongue, na shi shi shi xing, like what is that thing? You really need to develop musculature that you have not developed before as a native English speaker.

• 11:01Tim Ferriss?

  And then after you've developed the basic, the basic phonetics and pronunciation verbally, you would move into the writing and for some scripts. And the writing tells you a lot about the thinking of a given culture. And I think of culture as a sort of a collection of shared beliefs and habits. Because some are purely phonetic, like we have our romanized alphabet, and then others have multiple layers, like Chinese, where you have a character that's composed of radicals, each of which has a particular connotation in terms of, in terms of meaning and the etymology.

• 11:45Tim Ferriss?

  So all of that is, those would all comprise ingredients in the recipe that is language acquisition.

• 11:53Jim Collins?

  And forgive me for asking you a follow up question on that. I'm just, I'm curious, just as you've clearly come from both a love of language, but also a study of language. How much do you think the language in which you're operating, whether that be mathematics or whether it be Japanese or Chinese or English, either constraints or enhances the concepts that we develop?

• 12:26Tim Ferriss?

  I would say almost completely. I think the he, I can't remember if it was Wittgenstein

• 12:33Jim Collins?

  Wittgenstein, yeah.

• 12:34Tim Ferriss?

  Who said the, what is it, the limits of our language or the limits of our world, or something to that, to, to that effect. I, I really feel like language and thinking are inseparable, and therefore, part of the appeal to me in acquiring other languages, studying other languages, even if I only use them temporarily, like I, I did when I visited Turkey or Greece, these places, I still study the languages very intensely, because it gives you, in my experience, a different lens through which to process the world and

• 13:11Tim Ferriss?

  to absorb stimuli and to react to things differently. So, so in my experience, you can, you can, you can very often tell a lot about someone by not just the language they speak, but the particular dialect within that language that they choose. So, that, that can apply to English and the particular nuances or predilections someone has in their own, say, grammar vernacular, even in a given family, but it can also apply to coding, and then within coding, you have different coding languages, and they tend to reflect,

• 13:50Tim Ferriss?

  in many instances, different personalities and different value systems, different priorities. So, that's, that's how I would, I would think about that.

• 14:01Jim Collins?

  Yeah, you mentioned Wittgenstein. I, I am no expert on Wittgenstein. I had a quarter in college, which the main focus of the work I was learning in was in Wittgenstein. And I remember the professor saying to me, well, what's marvelous about Wittgenstein is, he said something along the lines of, he lays out very clinically what we can meaningfully talk about. And, and then, the professor adds, and of course, then there's the great punchline, which is that most of what's really important, we can't talk about. So, because, because the words can't go to the mystical. So, very, very interesting. And I've often thought about this when I

• 14:44Jim Collins?

  Wrestle with concepts as I'm wrestling in my own research. One of the first questions I ask, people often ask me will say, how do you, how do you develop a concept or how do you decide to come at something that would allow you to, say, articulate something you're seeing through the lens of, say, the level five hierarchy or the preserve the course to relate progress duality or whatever. The first question I always ask myself is, what's the conceptual vessel? Because to get a concept, there's different kinds of concepts. You've got dialectics, you've got hierarchies, you have stages, you have equations, you have categories. And one of the first, most important things to do is to say, well, if you're looking

• 15:26Jim Collins?

  at something, what's, what's the best kind of conceptual vessel? And then, from there, you develop the concept. Just one thing on, on language, it's not really about language per se, it's about the really hard world of writing. And as I was looking about your background, Tim, I, I noted, if I read it right, that you had crossed paths with one of our great nonfiction writers, John McPhee, is that right?

• 15:54Tim Ferriss?

  That is correct. I was very, very lucky and got to take a class called The Literature of Fact, which was a seminar that McPhee used to teach. I don't know if he still teaches it, but I did have a chance to spend some time with the incredible McPhee.

• 16:12Jim Collins?

  Yeah. And, and just before we launch into our, our broad conversation, I, what, what was it like to have a class from McPhee? I mean, I have never met McPhee, but I've been a, a huge, almost student of how he writes. Of course, and I love the most recent work, I think it's called Draft Number Four, where he describes to all of us who struggle with words, the struggle of writing. But he's got those great books from years ago, A Sense of Where You Are, about Bill Bradley, and he has the Archdruid book, and he has The Control of Nature, which recently, with all of the fires and so forth happening in California, I actually went back to read

• 16:54Jim Collins?

  to, to kind of remind myself of how McPhee was writing about these things before. And, and he had just such a marvelous way of being able to use words. To really exercise this curiosity and see things and then put them in these marvelous forms. And I've often thought, boy, if you could like learn from him how to write. So as a proxy for that, what would you, you know, as those of us who write, we all know how hard writing is, right? Nobody would ever say writing's fun. What do you, what did you take from McPhee being able to really learn directly from him?

• 17:35Tim Ferriss?

  I never get tired of talking about McPhee, although I worry about invoking his name in a sense because I feel like I'm such a shameful, repetitive writer, full of all sorts of fluff compared to his tight prose.

• 17:54Jim Collins?

  His prose is tight. I mean, he's the consummate version of that Twain line about, you know, the difference between almost the right word and the right word is the difference between a lightning bug and a lightning bolt.

• 18:08Tim Ferriss?

  Right. So with the, with the sort of preface that I in no way compare myself to McPhee or claim to have had all of his magic rub up on me, the class was, was absolutely, this is, this is me looking for the right word, looking for the lightning and not the lightning bug. I don't use this expression much, but it was really paradigm shifting for me in many respects when it came to writing and thinking. And I'll mention a few things before I directly answer your question. Number one is I've carried my notes from that class with me everywhere, meaning in every

• 18:49Tim Ferriss?

  place I have lived since I took the class, which would have been in probably 98 or 99. So I've been carrying these notes for 20 years now. So that should tell you about how highly I value them. The, the second is.

• 19:06Tim Ferriss?

  I remember very clearly when we had our first round of feedback on some initial writing task that we had been assigned. Maybe it was, we had three, I think it was like three to five page writing assignments each week and we would have a seminar with all the students together and then we would have one-on-one sessions with McPhee. And I remember the first time he handed out in-class the red-lined versions of our assignments. So the, the, the printouts with his red ink on them. And in almost every case, he, he, he led into it by saying, "I just want you to know before I hand these back that you are all good writers. So I don't want you to take this, take this the wrong way," or

• 19:50Tim Ferriss?

  something like that. And there was more red ink on the page than black ink. And over time, he, it was, it was remarkable how, how quickly you could hone your observation to identify superfluous words, to identify the fat on the sentences that you're putting on the page. And what ended up happening, I, I should say that's on the micro level. On the macro level, and we can come back to this, and I do have questions about your conceptual vessel comment earlier. It was structure. It was, it was thinking about structure visually that really changed the game for me with respect to all types of

• 20:34Tim Ferriss?

  writing. And for those people who do like to get into the weeds, I, I think that draft number four gives plenty of examples of how intricately he thinks about structure. And he did a number of interviews with the Paris Review on nonfiction writing, which are also really worth reading. But my grades in every other class went up.

• 20:59Tim Ferriss?

  And yes, it's multifactorial. There are all sorts of other things that that could have contributed. But the the the correlation between starting that class and all of my other grades improving in all of my other classes was really uncanny. And I think that is very specifically because it was it was tightening up my thinking. And it was forcing me to, on a weekly basis, justify the use of specific words. And McPhee is a real stickler for the right word. Yep.

• 21:39Tim Ferriss?

  And if you use something that is vague, that seems like a lazy backup option that you tend to default to a lot, he will spot that very, very quickly. And it was a wonderful, wonderful class, and he is a very entertaining teacher as well. It's not like having a clinical autopsy done of your work each week, although he is also very dispassionate and certainly not trying to just make you feel good with his feedback. But he, he, over the years, has has developed a very entertaining style. I remember at one point, he was riffing on the various ways that one can convey,

• 22:24Tim Ferriss?

  he said or she said. And he brought up the very real example when people say, you know, he ejaculated. And then he just, you know, went on this riff about how unnecessary that was. And I got a good chuckle out of the students, of course, because there was a lot of heavy lifting to come 20 minutes later when we were going to actually jump into some type of task. So it's a long answer, but McPhee is, along with a handful of other people I can point to, very specifically, one of the people who has had the biggest impact on my writing, but more importantly, on my thinking and how I think about structured thought. And and I want to say one thing about Wittgenstein really quickly before I forget.

• 23:09Tim Ferriss?

  And that is, many of, or I shouldn't say many, but a surprising number of the people I respect for clear thinking.

• 23:18Tim Ferriss?

  Have an affinity for Wittgenstein. Reid Hoffman, the co-founder of LinkedIn, would be another example of that. And I think that's worth mentioning just because I think philosophy, there are certain categories or labels of the fields of study that sometimes get pushed to the wayside as impractical. And I think the study of language and the concepts that language represent is extremely, extremely valuable. And it's kind of one step above consciousness if we're looking at like the foundational layers upon which everything else is built.

• 24:02Tim Ferriss?

  So let me ask a question, if I may.

• 24:04Jim Collins?

  Yeah, please. And thank you for letting me start with exercising my curiosity. It's wonderful to have a chance to begin with questions, but questions work in both directions.

• 24:19Tim Ferriss?

  For sure. And I have so many questions, but I'm going to try to, no, I'm going to try to prioritize them a bit. But the conceptual vessel term that you used, or phrase I should say, could you give an example of choosing the right conceptual vessel?

• 24:40Jim Collins?

  Yeah. So maybe I'll use a couple, but let me start with one. So back when we were working on the research for what became Good to Great, a little bit of a story of what was happening. When we went into the Good to Great research and everything we do is a research base to it, I had really given the research team the instruction that I didn't really want to have a leadership answer. And the reason for that is because I was always skeptical, especially from the Built to Last research, which had come before, of placing too much emphasis on having a single leader. Number one, if you're going to build something truly enduring,

• 25:25Jim Collins?

  it has to transcend the leader. They all go away, they all die. You can't have a system based on a single leader. And the second is, you can go around in a big circle where you can say, hey, if that company was successful, it must have been a great leader. And then if it's not successful, you say, they weren't a great leader after all. And you're just in a big circle, you're not learning. So I said to the research team, I don't want to study, I don't want to have a leadership answer. And my research team, which is usually composed of somewhat, I would say, highly irreverent, smart people who just work really hard and they love to challenge me. And we had these, these what we call, kind of research chemozioms.

• 26:08Jim Collins?

  Because Curious George was our, is our, kind of our mascot, right, of curiosity. And we would have chemozioms. And, and, and so we would, we would, we would be talking about the research. And one day, the research team, kind of essentially joined hands when I came in. And they, and I said, "What's up?" And they said, "We're going to tell you today that you're wrong." I said, "Well, what about?" And they said, "Well, about this anti-leadership bias that you have. Each of us, we're responsible for studying the good to great journey, the inflection of these companies that were average, that, that made that leap. And, and, and we see that at that point of inflection, the leader had, played a huge role. And to ignore that, as to ignore the evidence.

• 26:52Jim Collins?

  You always tell us, Jim, pay attention to the evidence. We invoke that here today, you're wrong." And, and I responded to the team by saying, "Well, let me ask you a question. Remember your high school algebra?" They all, of course, did. And I said, "Remember, if you have the same variable in the numerator as the denominator, the variable goes away." And so, as, as a relevant differentiator. And so, I went to the whiteboard and I put a little, you know, line up there for the numerator, the denominator. And I put good to great companies in the numerator and comparison companies in the denominator. Now, our research method, and this all gets to the conceptual vessel, but you kind of have to sort of know how we get there.

• 27:36Jim Collins?

  So, our, our research is always based on a method that developed with a great mentor of mine. And one of the themes, by the way, I think that's going to come up in our conversation is what I see as the incredible role that who luck, right? The luck of the right people that intersect your life plays in the journey. And I had great who luck. In a research mentor named Jerry Porras at Stanford when we were doing Built to Last together, and Jerry pushed us to develop this method where he said, "Look, if you study successful companies or companies that achieve certain things, but you only study the successes, well, you're going to find they all have buildings. Well, does that

• 28:19Jim Collins?

  mean having buildings will make you, right, a successful company?"

• 28:23Speaker 01

  Right.

• 28:23Jim Collins?

  And so he said, "What we have to have is a comparison set, and we developed this historical method where you study the entire history of two evenly matched companies at the start of the journey that are in the same place, same time, same resources, same potential, and then one breaks out to a totally different level than the other and holds it long enough that you can have confidence in it. And the other, that was a virtually identical twin at that time, does not. And at the birth of any industry, for example, you have an explosion of new entrants. So all the early semiconductor companies, and in there you're going to find a twin pair of companies that are virtually the same, but one of them becomes Intel and the other one doesn't, right? So why?" And so he said,

• 29:05Jim Collins?

  "You always have to ask what's really different compared to what? It adds huge amounts to the work, just the magnitude of work you have to do to do the comparison, because it basically more than doubles everything you do. But that's how you see it. And of course, you find all the comparisons also have buildings. So buildings can't be the answer." So I went to the whiteboard and I said, "Okay, so we have good to great companies, had these remarkable people that led them through the transition. Well, let's look at the comparison companies." And started ticking through the list and found, "Oh, sure enough, the comparison companies had some remarkable leaders, and some of them were even really extraordinary

• 29:50Jim Collins?

  leaders. I mean, Jack Eckerd, who had built Eckerd, and Stanley Galt at Rumberbait. I mean, these were really, really good leaders." And so I wrote "Leadership in the numerator", I wrote "Leadership in the denominator." And I said, "Guess what? The variable drops out. We have it in both. It doesn't really matter as a variable. Well, let's go back to work and do something useful." And the team...

• 30:13Jim Collins?

  You know, that's the wonderful thing about smart, irreverent young people. They sort of closed ranks on me and they said, "We knew you would do that to us." So, so we came prepared. And, and this is when the team, this is the value of having a great research team, saw something that then led to this notion of what eventually became the Level 5 idea and the conceptual vessel for it. So, the team said, "Jim, you're right. Both sets of companies, the good to greats and the comparisons, at the critical moment in time, had leaders and there's no evidence that the leaders were any less exceptional in terms of their pure leadership ability.

• 30:54Jim Collins?

  But, there's something different about the good to great leaders. They're cut from a different cloth. It's not about their personality. Many of them were shy and reserved and soft-spoken, never drew attention to themselves, right? So it wasn't about that. There's something different about them." And that became interesting. And essentially what happened then was the question was, "What's the difference between these leaders?" It wasn't leadership, because they were both leaders who did leadership. There was something different about the leaders. And so, there was this signature of their humility and then their fierce will on behalf

• 31:38Jim Collins?

  of something that's not about them. They were able to subsume their ego into the company. And that blend of humility and will is what stood out. And that was different from the comparisons. So that was interesting. So you kind of step back and you say, "Okay, now how do we capture that conceptually?" And I went out onto my porch and I started thinking, "Okay, is this just an idea? They're just humble leaders? No, that's not quite it. There's something about this duality. Is it a dialectic? Didn't seem to be quite right." And I started playing around with different things and I had this flash that went through my mind of, "It's a hierarchy."

• 32:17Jim Collins?

  And it's a pyramid of capabilities and you kind of climb up this hierarchy. It was sort of almost like a Maslow's hierarchy, except it was of leadership. And that there was, there were levels to it. And I thought this is a hierarchy of levels. Level one would be individual capabilities. And so that would be at the base of the pyramid. And then you go from individual capabilities to level two, which is you get really good at playing well with others. Right? Good team skills. And then level three, you would learn how to manage. And by the way, as an aside, never denigrate great management. Anybody who's had a poor manager knows how awful that is to work for one and how great it is to work for a great manager.

• 33:00Jim Collins?

  And then above level three becomes a level four. And you go from managing to learning to lead. And then there was a higher level. And that higher level was the level five. And the level five, well, you, you could be a leader as a level four. To be a level five leader, you had to go to the next level of the hierarchy and add in this ambition for some things bigger than yourself with humility and with will. And that when you stand back and you looked at that, you could look at it and say, the right way to convey this idea is as a hierarchy that you grow through as distinct from some other way. I had to kind of find the, the, the, the way of capturing.

• 33:45Jim Collins?

  And then the critical thing is it's not leading, it's are you a five or a four? And here's sort of the overall pyramid. And just to illustrate, let me just invoke a, a, somebody who wrote their Princeton thesis on what became a level five journey. One of the great leaders that I've gotten to know is Wendy Kopp, the founder of Teach for America, right? Teach for America. Yep. She wrote her senior thesis on it, which is why I'm always curious. I mean, Jack Bogle wrote his senior thesis on mutual funds and ended up creating an amazing thing. Wendy Kopp wrote, wrote hers on, on what became Teach for America. But if you look at Wendy Kopp. If you were to ask the question, where is she on that? Well, she went through all the levels. But she's not just a leader.

• 34:29Jim Collins?

  She has that extra dimension where she's got that genuine personal humility and an absolutely ferocious resolve for the overall cause that is not about her. And if anybody that's met Wendy or seen her, you would never think this is about Wendy Kopp. You would never think, but if you ever doubted her resolve, right? There's that image of her sitting there trying to get her first

• 34:55Jim Collins?

  funding for Teach for America where her image is I put glue stick on the bottom of my pants and I would not leave the chair until I got a $25,000 check. I mean, just sheer will and will for ultimately the kids and how the kids' lives could be changed. And yet genuine humility. And so she went to the top of the hierarchy. And so when I stand back, I look at it and say, that's the right conceptual vessel for this journey of what we had seen. Now, other concepts.

• 35:25Tim Ferriss?

  May I jump in for one second?

• 35:26Jim Collins?

  Yes, sure, please.

• 35:27Tim Ferriss?

  The question was genuine humility. How do you identify genuine humility? What are the characteristics? And how do you separate it from false humility? Or what someone presents as humility? I guess I'm wondering how you.

• 35:46Jim Collins?

  How we imputed that from the research data?

• 35:49Tim Ferriss?

  Correct.

• 35:50Jim Collins?

  Yeah, yeah, it's a great question. So first of all, in all of our work, we start, not surprisingly, with a question of curiosity, right? It always has to be something, I just am really curious enough to go through the years of suffering to get some insights. And then you translate that into the research method, the comparison method, the historical method, and so forth. And then you collect vast amounts of information. So in the Good to Great, and the key is, you're not looking for anything in particular. You're looking for patterns of difference. Why did one set of companies, what was different about them versus the others as you walk through time?

• 36:35Jim Collins?

  And/or what kinds of decisions they made and so forth? Always going to that difference question. And so what we began to notice is that the Good to Great leaders.

• 36:48Jim Collins?

  Was fascinating that number one, you can do what's called event analysis. So you can do something like, say, let's call it event. The number of times and speeches you use the vertical pronoun versus you don't. Over the course of a career. And that's something you can count, right? So you can look at it and say, let's take the good to great CEOs. And let's take the comparison CEOs. And look at every letter they wrote that we can get hold of. Let's look at every speech they ever gave, every interview they ever gave. Right, when you got mountains and mountains of information. Now let's go through and literally count. How many times they tend to take credit themselves?

• 37:32Jim Collins?

  How many times they give the credit to others? How many times they don't use the vertical pronoun I? How many times they do? Now, later, of course, if somebody read level five, they could try to pretend to be level five. I'll never forget an email when somebody sent me an email that says, "Help." And I open it up and says, "Dear Jim, our CEO just walked in and announced he's level five. What do we do?" Have him reread the chapter. So, but these were people that they were just doing what they were doing. They weren't trying to show themselves one way or another. That's the thing of looking over course and entire history or career. You can count things.

• 38:14Jim Collins?

  How many times did they allow themselves to be on the cover of a magazine? How many times when they're in discussions about things that did not go well? You can look at window and mirror events. Things that did not go well. Well, one approach is when something does not go well. You can point out the window and subtly, or not so subtly, attribute the reason it didn't go well, the factors outside yourself. The economy, or somebody let you down, or a partner didn't come through, or whatever it happens to be, but somehow it's not you.

• 38:55Jim Collins?

  Or there's the window approach, which is your kind of natural tendency is all that might be true. It doesn't change the fact that I'm responsible. And I'm on this, and this is the mistake I made, and so on and so forth. And you can look, and again, it's comparative. What did the comparison CEOs do? You can count a lot of events of some version of pointing out a window. What did the good to great CEOs do? You can count a lot of versions of pointing in the mirror. And so you begin to add all this up, right? And over the course of decades, because we look sometimes over 50, 60 years, and some CEOs were in harness for multiple decades, that then, and since they're all publicly traded companies, people often ask, well, why do you only study publicly traded companies?

• 39:40Jim Collins?

  My answer is because that's where the data is, right? It's not because, because that's the beauty. They all have to report the same way. They all have annual reports. They all have earnings calls. They all have all these things over time that you can then use as data sets. I'm never, I'm not really a business author. I just happen to have used companies as the method to study human systems because there's great data. And so that's where the data is. And if you do that, and we have 6,000 years of combined corporate history in the research database, pretty soon you can start counting a lot of things. And then you can begin to say, there's a substantial amount of quantitative evidence that adds up to a greater level of humility in these than those. And that's how you get there.

• 40:25Tim Ferriss?

  May I ask you a question about counting?

• 40:28Jim Collins?

  Yeah.

• 40:29Tim Ferriss?

  All right. So I, we, we have a number of books we could talk about, and we are going to talk about some of them, but Built to Last has a subtitle, Successful Habits of Visionary Companies. I'm very fascinated by what might be the successful habits of Jim Collins. And this is a question about counting. In the course of doing some of the homework for this conversation, I have come across different ways that you seem to measure your time and your days. And I'd love to explore that for just a little bit.

• 41:01Jim Collins?

  Sure.

• 41:02Tim Ferriss?

  So the first was, I read that you had, and this may have evolved or changed by this point, but a stopwatch with three timers in your pocket. Can you, and that it was sort of indicative of creative teaching and other.

• 41:17Jim Collins?

  Yes.

• 41:18Tim Ferriss?

  But could you explain? That habit, please, for people who are not familiar.

• 41:24Jim Collins?

  Well, so actually, let me tell you the story of how it began.

• 41:27Tim Ferriss?

  Yes, please.

• 41:27Jim Collins?

  What the three were about, and then how it's evolved into something a little simpler and a little more powerful and what I do with it every single day.

• 41:34Tim Ferriss?

  Perfect.

• 41:35Jim Collins?

  So I don't want to pretend that I'm normal, okay? So what I would describe is not normal behavior, but this is it. So when I was 36 years old, I made the decision, and we can come back to this later if you want to talk about big bets and doing scary things, such as betting our career, betting our lives, Joanne and I, on an entrepreneurial path. Let me just kind of step back and sort of share the origins of this.

• 42:01Tim Ferriss?

  Yep.

• 42:02Jim Collins?

  So I was teaching at Stanford, and it was a marvelous journey, and of course, I had great mentors and learned how to do my research there. That's where Jerry and I did Built to Last. But I had another mentor who encouraged me to think about whether I wanted to do a self-directed path or not. I used to say to my students, because I taught entrepreneurship and small business, I always said to my students, "Why don't you go do something on your own? I mean, why give over all your creative energies for somebody else's thing?" I would at least challenge them to think about that. And I would say, "If you're really interested in business, you don't have to go to work for IBM to be in business. You can do your own." So my students, this is the wonderful thing about great students, they hold you to account,

• 42:47Jim Collins?

  right? They said, "Well, what are you doing that's entrepreneurial? This doesn't look like a very entrepreneurial thing, teaching these classes and being here." And so I started thinking about it, and I realized something about myself, which is I like betting on myself. So I had this idea, "You don't have to be at IBM to be in business. Why do I have to be at a university to be a professor?" So I said to Joanne, I said, "You know, I think I have this idea of, I'd like to be a self-employed professor, to endow my own chair and to grant myself tenure." So Joanne, who, we've done these things together through life, she went on with this idea.

• 43:30Jim Collins?

  And the idea was to try to pursue really big questions that wouldn't be constrained by things you could do in only a year. And the first big bet on that was the research in Built to Last, and it was coming out, and I said, "Let's just bet everything. Let's go." And so, we launched this huge bet, bet everything on that book. Didn't know if it would work. We were down to less than $10,000. We were actually really scared. We call it our Thelma and Louise moment. We were like launching off the cliff together, except we wanted to get to the other side. But it was a huge, it was a huge bet, and we didn't know if it would work. But I was very clear about one thing. I did not want to have a half-life

• 44:10Jim Collins?

  of quality in the work. And it's one of the wonderful things about working on Built to Last with Jerry back at Stanford. No one knew who I was. No one called. No one paid any attention. So for six years of working on that research project, I could just go into the cave and work and work and work. And that kind of deep work, I mean, you have to go deep into the data, deep into the research, deep into the thinking, the long cycles of reflection. That's how you get the ideas, and that's how you do good stuff. And what

• 44:50Jim Collins?

  I was worried, that what would happen is if I went from being invisible to being visible, and that if I was fortunate enough to have a success, that I might wake up in five or six or seven years and have not gone back to the wellspring of the deep, quiet solitude of work. And then your second book is half as good, right? And then the next book after that is only half as good again. I wanted the quality to always get better. And so I thought, "Well, you know, what's interesting is a professor, a university is a place that really encourages that, because it's sort of designed to allow you to spend your life

• 45:33Jim Collins?

  in that tranquility." And so I went to some faculty members who I greatly respect, and I said, "How do the people in the academy that you most respect and yourself spend their time?" And I got a consistent answer: 50, 30, 20.

• 45:55Jim Collins?

  Fifty percent of your time in new intellectual creative work. Thirty percent of your time in teaching. And twenty percent of your time in other stuff that just has to get done. Serving on committees, you know, whatever it happens to be that you have to do. And so I thought, that sounds good. I'm just gonna start doing that. So I started as I was heading out on the Thelma Louie's leap, counting my hours every day. And I would count how many hours in the day were creative, new, intellectual. And that, the goal was that had to be above fifty percent. Then, how many hours would be in teaching? And how many hours would be in other stuff? Like, I mean, I got somebody gotta balance the QuickBooks, right?

• 46:40Jim Collins?

  And so, I started counting, and that's where the triple stopwatch came. I found this wonderful triple stopwatch where I could constantly go back and forth, and at the end of the day, I would have the total. Later, I came to the realization that what really mattered was the first bucket. The creative work. And so, I eventually simplified it. There's a concept in Great by Choice called the twenty mile march. And so, I kinda had a twenty mile march, I just didn't know that concept yet. And the idea being something you just do really consistently over time that imposes a very high level of discipline that accumulates to results.

• 47:23Jim Collins?

  And so, I simplified it, and I just simply said, can I just simply count the number of creative hours I get every day? And then hold myself to an account. So at the end of every single day, I open a spreadsheet, and that spreadsheet has three cells on a line, and that's for the day. The first thing is just a simple accounting of what happened that day. You know, where did my time go? What did I do? What, etc.

• 47:49Tim Ferriss?

  Can you give, sorry to interrupt, but I would love, this is the stuff I love. What might a description for the day look like? Is it three sentences, four sentences? What might it look like?

• 48:02Jim Collins?

  It sort of depends on, I mean, actually, the very best days don't have much in it at all. They are, got up early. Two hours of really great creative work, breakfast with Joanne, five hours creative work, workout, nap, three hours of creative work, enjoy dinner with Joanne, bed. I mean, that's like a great day. But other days are full of lots of other choppy things. And so what I tend to do is to try to capture a bit of what happened with sleep, what happened with the main tasks of the day, if there were some really interesting conversations that

• 48:46Jim Collins?

  happened, or something that hit in those, I'll note those. They're markers so that I can always go back, and I'll show you how I use those in a minute, because I actually do these correlations with all of that. And then the second cell is the number of creative hours I got that day. Now, there's no rule about how many you get in a day. Sometimes they're zero, and sometimes they can be nine or 10, which would be a huge number. And, but then it calculates back over the last 365 days. And the march, which I don't think I've missed for well over 30 years, and I hope

• 49:23Jim Collins?

  to hit for a lot longer now, is every single 365-day cycle, every single one, every single day, if you calculate back the last 365 days, the total number of creative hours must exceed 1,000. No matter what. It doesn't matter if you're sick, it doesn't matter if there's other stuff you'd like. A thousand creative hours a year as a minimum baseline. They can be above that, that's fine, but never once, there can't be a single day in any 365-day cycle, January 2 to January 2, July 22 to July 22, September 9 to September

• 50:08Jim Collins?

  9, doesn't matter. Always has to be above a thousand creative hours. And you watch it, and I put on the whiteboard here at the lab, the three-month pace, so you take the last three months multiplied times four, the six-month pace, and then the current 365. And that is a way to kind of monitor. If I start seeing that those numbers start to go down, you know, I'll change my behavior. And sometimes I have a big buffer, and sometimes I don't. And the idea is if you stay with that, eventually you're going to have work. Now, there's a third cell that I put in there that most people don't know as much about because people know about the hours thing somewhat.

• 50:50Jim Collins?

  But I, um, all of us have, you know, dark times, difficult times. All of us have good times, right? But here's an interesting thing I noticed, which is that if you're kind of going through a funk, it colors your whole life. And you tend to think your whole life is a funk because you're looking through that lens. And so I thought, well, you know, but actually, I feel like my life is really pretty good. But when you're in that other place, it's not, it doesn't feel that way, right? And so what I started to do is I started creating a code, which is plus two, plus one, zero, minus one, minus two. And the other thing I put in, and the key on all this, by the way, is you have to do it every day in real time.

• 51:35Jim Collins?

  You can't like five days later, look back and say, "How did I feel that day?" And what this is a totally subjective, how quality was the day? What was it? A plus two is a super positive day.

• 51:48Tim Ferriss?

  This is emotionally speaking.

• 51:50Jim Collins?

  Exactly, just like, was it a great day? A plus two is just a great day. Doesn't mean it wasn't, there might not have been a really difficult day. It might have been a day of a really hard rock climb. It might have been a day of really hard writing, but it felt really good, right? It might have been a day of an intense conversation, but really meaningful with a friend or something, right? But it adds up to is a plus two. Plus one is another positive day. Zero is, eh, you know. Minus one's kind of a net tone negative. And minus two is, those are bad days, right? And you put it in before you go to bed. Because if you try to remember, if I were to ask you, Tim, right now, seventeen days ago, or even five days ago, to give the score, you're gonna be distorted by how you're feeling today.

• 52:35Tim Ferriss?

  Oh, for sure. I mean, yeah, I mean, memory, if you ask people what they ate two days ago, they're gonna be off by forty percent, fifty percent calories, for sure, yeah.

• 52:44Jim Collins?

  Exactly. So I write it down, and now I start to have, I got the Creative Hours March, which is, it's kind of discipline in service of creativity. And I, and I, and it's relentless, right? It just stays with me constantly, and you never get a break from it. You can take breaks, but you can never get a break from the thousand four, but that other has proved to be incredibly useful for me, because now what you can do is sort the spreadsheet. And you can say, "Over the last five years, what's going on in all the past two days?" Oh, and over the last five-

• 53:16Tim Ferriss?

  Uh, that's where the descriptions come in.

• 53:19Jim Collins?

  Yeah, exactly. And over the last five years, what's going on in the minus two days? And now, as I navigate, it's kind of like the simplex method in operations research, where you find optimal by never really knowing that optimal is ahead of time, you do it by a series of iterative steps of the next best step.

• 53:37Tim Ferriss?

  Hold on, can you explain that? I'm from Long Island, so sometimes it takes me a minute. Could you, can you explain what that was one more time?

• 53:46Jim Collins?

  Yeah, sure. So, uh, what I, my, my undergraduate was a thing called mathematical sciences, uh, with a heavy dose of philosophy. And math sciences was, uh, pure mathematics, computer science, uh, statistics, and operations research. And in operations research, there's a method, uh, developed by a guy named George Danzig, uh, called the simplex method. And essentially, the idea is that if you're really trying to find the optimal answer to a multivariate problem where there's lots and lots of variables, even the biggest computers couldn't basically do a giant spreadsheet and sort. There's just too many permutations. And what he showed was, under certain conditions, all you have to do is find the local optimum, like what's the best next step?

• 54:29Tim Ferriss?

  Right.

• 54:29Jim Collins?

  And then you reset, and then what's the next best step? And that he showed that under certain conditions, that is mathematically guaranteed to navigate you to the optimal endpoint. And that was the simplex method. As I understand him, it was thirty, forty years ago when I was in the class, but, so I've always had that idea in mind. So you kind of navigate step by step. And so I think about it as in navigating life, I want more of the things that create the plus twos and less of the things that create the minus twos. But the difference that's helped me is I know what they are.

• 55:05Tim Ferriss?

  Yeah.

• 55:07Jim Collins?

  And I can start, you know, it's not that life is never perfect, but you can do a simple more of this, less of that, then more of this, less of that. Does that make any sense?

• 55:18Tim Ferriss?

  It makes perfect sense. What are some of the the patterns that you found for for either the do more column or the do less column? For yourself?

• 55:26Jim Collins?

  Yeah, so, so when I look at those patterns, I would say on the plus twos, there are almost two contradictory components. And not contradictory, but they're just really different flavors. One is the solitude of really hard work. And sometimes one of my favorite days will be, I get up, I never leave the house, and I basically get to just lose myself in the research, or in the writing, or in the making sense of things.

• 56:08Jim Collins?

  It's a very incredible simplicity of the day. As I, as I, as I'm sixty-one now, and I think about what comes next, and I intend to keep creating, I want to stay in some version of that march for a really long time. My role models have all done that. But I think about life as having three, three things at least, I think, are really important. And one of them is increasing simplicity, just sheer simplicity. Two is time and flow state, and flow state's not easy. And the third is time with people I love.

• 56:45Jim Collins?

  And, and, and so when I look at the, at those plus twos, they have a lot, a lot of the days would be days of high simplicity. Not much happened. There were very few moving parts.

• 57:01Jim Collins?

  But a lot of deep, hard work and flow state. I might have been writing or doing a concept or creating something or, I mean, just you're lost in the work.

• 57:10Tim Ferriss?

  Or rock climbing, probably.

• 57:11Jim Collins?

  Or rock climbing, exactly, exactly. It's arduous, but you're lost in it. Those are great. The other, though, for me is the time with people I love. And the other dimension, while I wouldn't describe myself as a highly social type person, I love the solitude of the hard work. The other side is, um, there are the people in my life, and there are many, I have great friends, really great, great friends that many decade friends, friends back to third grade, seventh grade, all my college roommates, I mean, my personal band of brothers, I mean, I have friends. And, um, and, and my wife, we've married thirty-eight years, uh, got four, engaged four days after our first date.

• 57:54Tim Ferriss?

  What? Four days after your first date?

• 57:57Jim Collins?

  Yes, that's true.

• 57:58Tim Ferriss?

  Wow, okay. We might come back to that.

• 58:01Jim Collins?

  We might, but, uh, but the, but the thing is, when you have those days where you're really present and engaged with people you really love, those are plus-two days. They, you may not have accomplished anything, or in the case of climbing, it might be that I went out climbing with one of my best friends, and I don't even necessarily remember the climb, it was with a friend. And so my plus-two days are either very solitude or very connected, but connected to people that have these long enduring, really, really wonderful relationships in life. And those make plus-twos.

• 58:40Tim Ferriss?

  I love it. You, you at some point in life need to meet my friend Josh Waitzkin, who, you and he have very similar heuristics. Uh, he was the basis for the book and the movie Searching for Bobby Fischer, so his first life was in chess, but I, I won't, I won't take us too far off track, but at some point, uh, I think you guys would really, really get along. Uh- Okay, let me dive into a couple of clarifying questions if I may. Because this is so juicy, I can't, I can't, I don't want to just move on to the next thing.

• 59:15Jim Collins?

  We're gonna have all these people now creating spreadsheets.

• 59:19Tim Ferriss?

  I was gonna say, if this writing thing doesn't work out for you, you should create. You have a spreadsheet company, you have a journaling company available to you. Creative, so this is a word that means different things to different people. What are the main activities? Or what are some of the activities that are squarely in the creative bucket for you? And the reason I'm asking is I'm thinking of how I spend my own time. And you have a team, I suspect a much smaller team. But for instance, if you are working on a book that requires interviews, would spending time scheduling those interviews count as creative? Or is there a cutoff? Even if it's in service of a larger creative project, where you have admin and then you have creative.

• 1:00:03Tim Ferriss?

  So for you, what counts towards the hours marked creative?

• 1:00:09Jim Collins?

  So you've hit upon exactly where the gray zone is on this. And in general, in order to, again, I have to go back to what's the overall objective. The overall objective is that over time, there's quality work. And so I can't start calling things creative that in the end wouldn't lead to some kind of creative output. And by the way, sometimes that creative output ends up in a drawer because it just doesn't make it to the world. But you have to just keep working. And I think of it as like being an artist in a studio. And so, well, are getting the paintbrushes ready to paint?

• 1:00:54Jim Collins?

  Part of the creative, I would say yes. I would say that organizing the tools and maybe even ordering paint. Because it's in direct service to the creation of what ultimately might be on a canvas, whether the world sees it or not. I define creative as any activity that has a reasonably direct link to the creation of something that is new and potentially replicable or durable.

• 1:01:21Tim Ferriss?

  Oh, I like that. Yeah, please expand on that.

• 1:01:24Jim Collins?

  So, um, so for example, uh, if, if we have, uh, in this conversation, right? I, I, I mean, there's already elements that will count as somewhat creative because just even you start thinking about, uh, if, if an idea pops into my head, uh, and then that leads to supporting some other, uh, you know, concept or piece of work that I'm working on. Because a lot of times, I'm sure you find this too, is there's a seed of an insight that's lurking in the back of your brain. And then in the process of conversation, or in the process of trying to articulate something, or in some other mechanism, it gets jarred out of your brain and then all of a sudden you see it bounce on the table. And then you go, oh, I need to put that in a bag and not forget it, right? And, and, and, right?

• 1:02:09Jim Collins?

  And so, and sometimes that happens. I'll, I'll give you an example of how something that, that, that can, uh, turns out to be a kind of a creative moment, I wasn't anticipating as a creative moment. I was meeting with a, I don't know, I can't say who it is, but it was a very towering, uh, super charismatic, super genius, uh, founder, who is, uh, you know, sort of to, to his world, the way, say Walt Disney might have been to his world. I mean, just, you know, truly, uh, uh, uh, a once in a generation. But unlike Disney, uh, this person never really started thinking about the systems

• 1:02:51Jim Collins?

  that would allow him to build a company that could really ultimately go beyond, uh, beyond him. And there were challenges with that. And so we were talking, I was trying to figure out, how do I, how do I get through to this? And there were, there are other people on the team who didn't really want to step up into certain roles and a whole bunch of other stuff. And so you could kind of picture that as I'm challenging, I'm trying to teach them, set the stage for making a built to last company. And, and, um, so you could view that as, well, what's creative in that? You're just kind of wrestling with this, with these people. And all of a sudden, in the middle of the conversation, I remember I, I just, I just turned and I, I looked at him. I said, here's the problem. You, sir, are a genius. So let's just start there as the problem. You are genius.

• 1:03:37Jim Collins?

  And, and what you have is a thousand helpers.

• 1:03:42Jim Collins?

  Now, so long as you're still a genius,

• 1:03:46Jim Collins?

  and so long as all these helpers want to help you, being a genius with a thousand helpers, that's gonna work really well until either A, someday you're not a genius, or B, you're gone. In which case, this company just hollows out, there's nothing left. There is no company. All this is, is a genius with a thousand helpers in a sort of a vessel called a company. It's nothing more. Well, right then, that was when this thing came out of my head, bounced on the table. I had never used that phrase before. And I immediately, I made a note on my notepad, and I went back, and if you're looking at Good to Great, there's a section, when I'm trying to describe the comparison CEOs in contrast to the Good to Great CEOs, where I talk about the genius with a thousand helpers.

• 1:04:31Jim Collins?

  And I contrast how the level five leaders come at it as, that's the last thing they'd want to be, right? And how they'd want to build a culture and a company, and ultimately be the architect of a great system, versus being the genius with a thousand helpers. And there's a flow chart in there that sort of describes the difference there. That came out of that conversation. So, I got to count that conversation as creative, even though when I went into it, I didn't know that that would happen. So, I wouldn't have counted it normally. There's other times where, sure, I was doing some research on K-12 education recently, and the process of really deciding who I wanted to interview, that would count. That's like assembling the paintbrushes.

• 1:05:14Jim Collins?

  If I'm balancing the QuickBooks account, because I have to do that, and, you know, or I'm, um, I don't know. There are things where they just sort of clearly fall outside of it, and I don't count it. I try to be a hard counter, so that I stay on the march.

• 1:05:33Tim Ferriss?

  This is super helpful and it also made me think about how if someone were to and I was thinking about this earlier as well, how the 50% creative, 30% teaching, 20% other in some respects have a

• 1:05:54Tim Ferriss?

  well, we will get to this. Maybe it's not, I wasn't gonna say maybe it's not flywheel exactly, but the creativity can lead into teaching, the teaching then can lead back into the creativity because it forces you in some respects, or at least catalyzes you to express things in ways that you might not otherwise and also points out things that are unclearly formed if you then try to convey them to somebody else.

• 1:06:27Jim Collins?

  And in fact, it's interesting in preparing for today and I love to prepare for a conversation by thinking through what we might chat about, but then it's not a script. It's like having a different plays you can have in a football game, like what might happen in the game and then that's a conversation. Even when if I get together with a really good friend, I usually will write down three things I'd love to chat about today. We may or may not get to them, but one of the things I did for today was I thought, I wonder if Tim will ask me, what's my own flywheel? And so I actually took a comment writing it down. If we come back to that later, I'd be happy to.

• 1:07:02Tim Ferriss?

  Yeah, we will. We will absolutely come back to that. And I have a path there.

• 1:07:09Jim Collins?

  Yep.

• 1:07:09Tim Ferriss?

  So you mentioned a while back, actually before, I just have to check this box or it's gonna bug me, sleep tracking. So you mentioned sleep. How do you note or modify or have you modified your sleep? Can you talk to us about, I think most people would agree it's important, but how have you monitored and modified your sleep?

• 1:07:35Jim Collins?

  Well, again, so.

• 1:07:39Jim Collins?

  I'm not normal, okay? That's precisely why I'm asking you these questions. No, but I, but, but one of the things that struck me a number of years ago is that we spend so much time thinking about time management, and I'm not really a, I mean, even though I describe this counting and stuff, I'm not really a time management sort of person. I'm a, like, I don't, I don't have kind of, I have to organize my time a certain way or whatever, that thousand creative hours, as long as I stay there, there's millions of ways I can get there, right? So I'm, it's, it's like, it's like a constraint within which now I can have a ton of freedom, right? So I'm not overly regimented, I'm just disciplined, and there's a big difference.

• 1:08:22Jim Collins?

  And I, until when I was, I was thinking, well, wait a minute, if a third of our lives approximately are spent related to sleep, why don't we put as much thought into time management of sleep as we do into the rest of our day? I mean, it, it, it's just ignoring a huge piece of it. So, one of the things I did was, without, to my knowledge, having a sleep issue, I, and my, my insurance wouldn't pay for this or anything, I just was curious, there's a sleep center, and I think it's the National Jewish Hospital here in, in Denver, they have a sleep lab where they'll do sleep tests and stuff, and I just said, hey, can I come and get sleep tested?

• 1:09:05Jim Collins?

  And so I went down there and just scheduled myself in and spent the night and had them put the electrodes on, and I kind of feel like I'm my own rat in life, my own lab rat, where I'm always studying myself somehow, right? And, and this, I used to have a little book called The Bug Book, where I'm the bug and I'm studying the bug called Jim, that's how I figured out where I was gonna go in life. And so, anyway, so I went down to the sleep lab, and, and I said, I'm gonna study, to study sleep is too strong of a word, I'm gonna be a student of the science of sleep. And so, because it's a third of my life, I, why don't I understand it? So, I, I got the sleep test and I found out I didn't have any, you know, serious sleep pathologies. I learned about the different aspects of sleep.

• 1:09:46Jim Collins?

  And what, the big takeaway I got about sleep was we tend to think of this idea of, you know, seven hours a day or eight hours a day. And what I learned from this little journey, and I'm, again, I want to underscore it. It's not like I'm a sleep expert or anything, or I'm just trying to figure it out for myself, is it's actually the number of hours that you get over, say, a 10-day cycle. So, if you go up and you, you do a big climb, like when Tommy and I did our climb in Al Cap together and do it in a day, that means 24 hours. You're going to be awake for 36 hours. And so, if you're basically like, "Oh, I couldn't do it without sleep," well, you're never going to do it. You can perform at really high levels with zero sleep over a day. You wouldn't want to do it over 10 days, though.

• 1:10:29Jim Collins?

  And so, the, the, what, what I, I started thinking was what really matters is the amount of quality sleep I get over, say, a 10-day cycle. So, early on, after all this, I actually started counting and I would count naps and I would count to just try to keep, again, very much like the 20-mile march of the creative hours, as long as I was staying above 70 over a 10-day cycle. However I got there, that was fine. I've since found that, um, uh, what really, I, I'm, I, I probably still hit that number, but having counted it for about a decade meant that I ingrained the patterns of how to come at it. And what I've learned is, I guess, three, two or three things specifically about, about the sleep process for me. This is just personal.

• 1:11:14Jim Collins?

  One, the 20-minute rule. If you wake up in the middle of the night and you check the time, first of all, it's also, by the way, fun to see if you can guess what time it is, right? Uh, but then, check the time. And then, um, and then if you're not back asleep in 20 minutes, get up and go. And then, I love, you know, sometimes go lose myself and, again, back to the simple work, whatever, there's something really quiet, I'd get up at 3:00 or 4:00 in the morning and just, you're just there with the creative stuff you're doing. That's a great time. Sometimes you wake up at three, sometimes you wake up at seven. The second is, for me, I'm really, really lucky.

• 1:11:54Jim Collins?

  I have the genetic ability to nap in any situation. I took a nap, I woke up eight minutes before our conversation today.

• 1:12:06Jim Collins?

  I'm serious.

• 1:12:07Tim Ferriss?

  Yeah, I know you are.

• 1:12:09Jim Collins?

  And so for me, my little secret extra capability that I just was born with was I can nap pretty much anywhere, under any conditions. And I can dream, you give me 12 minutes, I'll dream. If you give me 55 minutes, I'll dream. And I can wake up and boom, be fine. It's just genetic. But naps are my sort of saving. They give me this sense of like, ah, whatever happens, I'll be fine because I can always close my eyes. I can nap sitting up.

• 1:12:41Tim Ferriss?

  When do you choose to nap?

• 1:12:43Jim Collins?

  Well, I have two favorite times of napping, three favorite times of napping. One is airplanes are great for napping. So you never, I never eat anything on a plane or, you know, do any of that. I'm either trying to do something creative or sleep. And I have, I really, I have a sleeping kit, which includes Bose noise-canceling headphones and eye covers and a donut pillow that the headphone can go in. So it's actually like really, like kind of creating a microenvironment so you can sleep on an airplane or wherever you happen to be. The second place, if I'm not traveling, which I try not to do too much anymore, afternoons are great for a nap because you have a really good morning

• 1:13:25Jim Collins?

  and then you just, and then you get that wonderful afternoon glow of creative time. Sometimes if you took a nap from, say, two to three or three to four, and then you have that marvelous like four to seven in the evening and it somehow coincides with the end of the day, that can be, it's like a second morning. And my, but my favorite absolute sleeping pattern is, so when Joanne's doing one of her bike rides across the country and she's gone for six or seven weeks doing it, I'll fall into a pattern where on a lot of days, I'll go to bed at 11 and get up at 3. I'll roll out of bed and then I'll do the creative work stuff, usually creative or preparing teaching, from say, 3 till 7.

• 1:14:09Jim Collins?

  You don't eat anything, you don't drink anything, you don't have a cup of coffee, you just go, roll right in. And then you go back to sleep from seven or eight until ten or eleven. And if you've ever been under general anesthetic, that second sleep is like general anesthesia. I mean, you blink and it and it's just that that deep, dark bang and all of a sudden three hours are gone. And then I get a second morning, because mornings are the best. I get a second morning when I get up and then you have breakfast and then you get this really great energetic day. That for me is a perfect sleep day.

• 1:14:47Tim Ferriss?

  Wow. I I have these things I'm dying to get to, but then you keep bringing up interesting things, which I've

• 1:14:54Jim Collins?

  Well, go ahead.

• 1:14:55Tim Ferriss?

  No, no, I squarely blame you for that, but I'm glad you're doing it. The bug book.

• 1:15:00Jim Collins?

  Yes.

• 1:15:01Tim Ferriss?

  You you mentioned it in passing. What? Yeah. What is the bug book? Could you please elaborate on the bug book?

• 1:15:08Jim Collins?

  On the bug book. So when I I think a lot of us, and I I certainly was one of them, have a kind of the we we struggle in our twenties to get clarity about how to deploy ourselves in in the world. And because everything up until you've kind of finished, you know, high school or college or graduate school, whatever, it's kind of structured. You don't really have to think about it. It's like, oh, I gotta I gotta figure out how to do these math problems or whatever. And but life isn't really like that. And then all of a sudden you hit hit life and life is much more ambiguous. And so you're

• 1:15:48Jim Collins?

  trying to navigate through it. So I I like a lot of people was was trying to, you know, figure out how best to deploy myself in my twenties. I had multiple things that helped me do that. But one of them, let me just introduce a concept, okay? And then I'll tie it into the bug book, because this is how I challenge young people to think about it. There's a concept in Good to Great called the hedgehog concept. And the idea of the hedgehog concept is is to sort of simplify down. We found it by studying companies. We found that when they really focus on one or a few really big things and made very disciplined decisions over time, those would accumulate and begin to build some real results and eventually what would become the flywheel effect, which we'll chat about a little bit later.

• 1:16:34Jim Collins?

  And the hedgehog concept is the intersection of three circles. For a company, it's doing what you're deeply passionate about because if you're not passionate about it, you can't endure long enough to really, really do something exceptional. Two, the second circle is what you can be the best in the world at. And if you can't be the best in the world at it, leave it to others. So, for example, it doesn't mean being big, right? You could have a truly great local restaurant. It's never going to be big, but it's the absolute best in the world at a particular thing that it does in its specific community, right? And no large company could come in and be better than them at that, right? That's very hedgehog, even though it's not big.

• 1:17:19Jim Collins?

  And then the third is that you have an economic engine and you know how it works. And so if you have the intersection of those three, our energy is going to go into things that we're passionate about and we can be the best in the world at, and the driver economic engine, you're in your hedgehog. Now, there's a personal analogy to the hedgehog. And this gets back to the bug book. I'm not a big believer in sort of thinking of traditional careers. I'm a big believer in thinking of finding your hedgehog and then really building flywheel momentum with that over time. And so the personal version of the hedgehog is, again, doing circle one, what you're passionate about and love to do.

• 1:18:03Jim Collins?

  The kinds of stuff that when you do it, you say, "I sure hope I get a longer life because I really love doing this." The second circle isn't best in the world because if you said, "Well, if I can't be the best orthopedic surgeon, I won't do it," well, then we'd only have one, right? That's not good. So, it's what you are encoded for. And what you are encoded for is different than what you're good at. So when I went to college, I thought I was going to be a mathematician because I was one of those kids that was good at math. And that's why I majored in math sciences.

• 1:18:42Jim Collins?

  But then I met at Stanford, the people who are genetically encoded for math. There were not me. I was good at math, they were encoded for math. It's like being an athlete where you thought you were a good athlete till you met the incredible, natural, gifted athlete and you realize, "I could never see to spin to the basket like he did." Or, "I could never see to put the ball there, running down the field, playing soccer the way she did." I just wouldn't have seen it. It was a gift. That's the encoding. And so, you have to find what you're encoded for as distinct from just what you're good at. And then, the third is, you have an economic engine.

• 1:19:27Jim Collins?

  And you can fund your goals, your objectives, the things you're trying to get done. When you have all three of those, "I'm passionate about it, I'm encoded for it, and I have an economic engine in it," now you're in your hedgehog. Now, when you're in your twenties, there's all these sort of paint-by-numbers kits approach to life, right? You can be a professor, you can be a businessman, you can be a lawyer, you can be whatever, right? And the nice thing about a paint-by-numbers kit is, you actually don't have to think about it that much, because as long as you stay in the lines and you paint, you're gonna end up with a nice picture at the end. But the only way to paint a masterpiece is to start with a blank canvas. And that is sort of figuring out those three circles and then making your own unique series

• 1:20:09Jim Collins?

  of decisions, consistent with the hedgehog of those three circles. And they may or may not fall into a traditional bucket. And so, I was trying to find my way. And I started this little book, and it was inspired by a mentor named Rochelle Myers, who suggested that what I do is I study myself like a bug. And imagine with this passionate objectivity as you're going through life, you're making notes, where you're observing the bug called Jim. But very scientifically, clinically. And so, I remember... I was, I was working at HP for a couple of years at a graduate school.

• 1:20:54Jim Collins?

  Great, great company at the time for sure. But I wasn't really constructed to be in a large company. But I was trying to navigate my way. And one day I had to give a presentation on how network computers work. And this was back in the 1980s, when it was early on in that. And I had to figure out how to communicate to everyone, really the essence in our, in our team of how network computing was going to work and how it would fit together. And I had to sort of conceptualize it and then I had to teach it. And, and show it all of a sudden, I had this day where it's like, wow, that was really fun to figure it out, to figure out how to conceptualize it, to figure out how to put it in concepts everybody can understand, to share it with everyone, to teach it. My bug book, when I'm then writing The Bug Jim,

• 1:21:39Jim Collins?

  really loves making sense of something difficult, breaking it down into understandable pieces and teaching it to others. It was an observation in the journal. The other thing is, might be something like, The Bug Jim would really languish.

• 1:21:58Tim Ferriss?

  If he had to spend a lot of time in senseless meetings.

• 1:22:03Jim Collins?

  This is not good. Right. And so I would, and constantly observing. And then eventually that allowed me to, that was that sort of observation, clinical, that allowed me to eventually sort of head back to teaching at Stanford when I was 30, which then became really the start of the, the, the real journey of what happened.

• 1:22:25Tim Ferriss?

  With the bug book, did you write things in the bug book each evening? Did you do it, keep it in your back pocket? And when there was a, uh, outs, like an outlying impactful or emotionally notable event, you would write in it? What was the structure to how you used it, if there was any?

• 1:22:46Jim Collins?

  At that time, and I'm more now just kind of in the coding we described earlier, because I'm, I'm one of those really lucky people that I found this earth stuff early. I remember the moment I hit the classroom at Stanford, first teaching the small business and entrepreneurship class. I just knew. I'm home, I'm in the three circles. Like, this is, I know was going to guide in some version, some permutation of this, probably for the rest of my life, and I just knew it. But until then, I had to kind of get to where I could see that. And so for those years, I would say, if I bet if I went back and looked at them, and I haven't done that, they're in my basement, I'll bet you that probably five out of seven

• 1:23:28Jim Collins?

  days, there's reasonably thorough entries in there. And, and, and those entries would also be things like noting, sort of projecting out. And a lot of it was often what I would describe as pattern recognition, where you'd be noting things, but I would also always be scanning for people that I could see them, older, people much older than me. And I could, and, and the question is, I could somehow picture that some version of what they do somehow resonated. And I would note that. What was it about it that resonated? Why did I look up to that person? I'd spend a lot of it, not just on my own experiences, but also very much on people that I admired.

• 1:24:13Jim Collins?

  Very, not people from afar, people I, I knew and observed, not for their achievements, but something about the quality of what they were. And that was also a big part of that, that observation process.

• 1:24:26Tim Ferriss?

  Okay, this is the perfect layup segue, so thank you for what you just said. To a follow-on, to you mentioning that you're 61 years old.

• 1:24:36Jim Collins?

  Yep.

• 1:24:37Tim Ferriss?

  And I read in a piece in the Irish Times, you can feel free to fact-check this, but you, you're quoted as saying, you know, "The big years are 60 to 90 to me. I want to dwarf what happened before this with what comes next." And in between, that quote was broken up into two pieces, it says, "He adds, pointing out that when he first met Peter Drucker, then aged 86, the Vienna-born sage still had 10 books left in him." So, McPhee is to you, in a way, wanting to know what it was like to study under him. Peter Drucker is to me.

• 1:25:13Jim Collins?

  Yep.

• 1:25:14Tim Ferriss?

  So I have a copy of The Effective Executive, I've read it more times than I can count. I'm fascinated by this man, but have never actually spoken to anyone who has spent any time with him. Can you, would you mind just explaining who, who he is for people who don't know? And then... Just talking about your, your history with Drucker.

• 1:25:33Jim Collins?

  Well, first of all, in The Effective Executive, I, I was very honored to have the opportunity to write the foreword to the 50th Anniversary Edition.

• 1:25:44Tim Ferriss?

  Oh, no kidding?

• 1:25:45Jim Collins?

  Yep, yep, and I'd, you might want to look it up because I stood back and I said, I essentially said, "I'm going to distill, you know, 10 things I learned from Peter Drucker in that foreword, some of which tie into The Effective Executive, but some were sort of broader than that." And it was very interesting to sit down and sort of think about some of those, some of those things I learned from Peter. So, I'll just sort of intersect a little bit with, with Peter and Peter was, ah, boy. So, let's talk about who luck, okay? As an intro to that. I have been so who lucky.

• 1:26:29Jim Collins?

  And, and it didn't start that way because I didn't really have a great relationship with my dad and, and I, and he died young and, you know, and so I kind of decided I would sort of create my own father by reading biographies and, and people that I would really look up to and I formed a personal board of directors, came up with that idea in the 1980s and started putting people on it and so I would, and they were often people who I just admired for their character, right, more than their accomplishments. And, and I would let them kind of, kind of shape me. And I hope a little bit later we might have a chance to talk about one really amazing person and that fellow named Bill Lizzie or one of my, my mentors I, I learned from. But Peter was a person who I just, if, if somebody said to me, well, somebody did say

• 1:27:14Jim Collins?

  to me, so a fellow named Tom Brown from Industry Week Magazine way, way back when, I don't even think we'd published Built to Last yet, did an interview with me and Jerry at Stanford and, and he said, "Well, who, who's most of a role model for you that you would most look up to?" And I said, "Peter Drucker." He said, "Why?" And I said, "Well, because he really asked big questions." And... And so, Tom, unbeknownst to me, I had previously interviewed Peter for something, and he calls up Peter and he says, "There's this guy, maybe he's gonna take his own path. He really admires you. He's 35 years old. He's up there teaching at Stanford. Would

• 1:27:57Jim Collins?

  you be willing to spend some time with him?" So, out of the blue, I get this voicemail. (laughing) Okay? (laughing) I get this voicemail, and I hesitate to try to mimic the Austrian accent because it just sounds terrible, but it's something along the lines of, "This is Peter Drucker." Right? It's coming through my voicemail, and he says, "Would you please give me a call? I would love for you to meet with me." (laughing) Okay. So, he's almost exactly 50 years older than me at this point. I'm heading to 36, he's heading to 86. And I call him back from Seattle Airport, and I call him

• 1:28:42Jim Collins?

  up, and I said, "Mr. Drucker, this is Jim Collins," and he yells into the phone, "Speak up! I'm not young anymore!" (laughing) So, I'm yelling into the phone, right? And so, we arranged this day, and I think it was December 10, 1994, if I recall correctly. And I get on a plane, and I go down to Claremont. And by the way, this is, let me just pause here for something for anybody, you know, you, anyone that's listening. If somebody is willing to give you mentor time like that, you owe it to them and to you to go prepared, and then to do a lot of writing after. So,

• 1:29:27Jim Collins?

  I put an entire couple, three days into preparing for being able to meet with Peter.

• 1:29:35Jim Collins?

  And then when I came home, I still probably have, I'm sure, my notes. I mean, I sat down and I just processed and wrote and wrote and wrote everything I gleaned from that meeting, and there were others, you know, interactions later, but that meeting. And that notion of you owe them the respect of going prepared, it's not like, hey, I want to hang out, let's network, it's not like that, right? You need to go. Yeah. And then, really, and then you need to process and then you need to make good on it. And I last year went, I had the great privilege of being able to spend a day with Jack Vogel. And that's an interesting story how that came about. But I spent like, two weeks preparing, and then probably three days codifying all my

• 1:30:19Jim Collins?

  notes after, of what you learned from this great man who only had, it turned out, one year left to live. And, and so if you, if you get that, I mean, you, you need to do it, because that's how you get the return on the hulock, and it's also how you honor them, right? You're not taking their time, you have to make good on what the time they spend with you. So, I went down there, and I knocked on the door, he lived in this modest house, you got a picture, it's this modest house in Claremont, and, and there's a little bit of paint needed on the door, and I knock on the door, and nothing happens, and then finally he sort of, you know, he's, wants me to be, wants to be patient, he's kind of curmudgeonly, and the door flings open, and there's Peter. And he grabs my hand and two of his.

• 1:31:03Jim Collins?

  He says, "I'm so very pleased to meet you. Please come inside." And we went and we sat, and I, and I have this, still this image of myself of, you know, this is the model I still have in my mind of the next thirty years, in many ways, is to, to pattern after. That way he had some sense of grace, but also the simplicity. He sat in a wicker chair.

• 1:31:31Jim Collins?

  And a few years ago, they had the, when they turned his house into a museum, they had the first ever Wicker Chair Lecture where you get to sit in Peter's Wicker Chair and give a lecture. And I got to give the inaugural Wicker Chair Lecture.

• 1:31:44Tim Ferriss?

  That's amazing.

• 1:31:44Jim Collins?

  Which was, it was, and the chair felt really big, by the way. It was Peter's chair. And, and so, I was always asking, "Why do we want to do this work? Why do you want to pursue these questions?" What, you know, and I kept trying to ask him questions, but he kept asking me questions. And then finally, we got to go to lunch. And I got a chance to start asking questions. And, and I asked him at that lunch, which of his 26 books he was most proud of? The next one!

• 1:32:20Jim Collins?

  He did write 10 more. He was 86. And years later, when I, again, a great privilege, had the chance to keynote the Drucker Centennial. He died at 92. And Claremont asked me to come and give a keynote talk at his inaugural, I mean, at his centennial of his birth. He was born in 1909. And it's actually, I think this, this is on YouTube. They put it up on YouTube. The, I went, I said, "I want to go see the shelf." And, and the shelf was all of Peter's books, put out chronologically based on when he wrote them,

• 1:33:02Jim Collins?

  first editions. And I said, "Where on the shelf was he, age 65?" And the answer was, when you pointed to it, 1/3 of the way across the shelf.

• 1:33:15Tim Ferriss?

  Oh my God, that's amazing.

• 1:33:17Jim Collins?

  Isn't it? And, and, and after that, they, they were so kind. They sent me a photograph of the shelf, which is kind of a long version photograph. It kind of goes all the way across. I have it above my writing desk. And I look at it, and I picture a little note, that, you know, I'm not 65 yet, right? I have a picture, a little note, which is, "You are here." And it's about 25% of the way across. So I don't know if I'll ever be as prolific as Peter was. But I'll share with you what I think was, there's so many things that were great about Peter. But here's what I think was really great.

• 1:33:55Jim Collins?

  People think he was a management thinker, and he was. He was the greatest management thinker of all time.

• 1:34:02Jim Collins?

  But as I stood back and looked at all of his work and tried to think about what he was really doing, I think he was in pursuit of a giant question.

• 1:34:15Jim Collins?

  And the best way I can articulate that question is, how do you make society both more productive and more humane?

• 1:34:29Jim Collins?

  If you think about it, that is one of the great social questions. How do you make our society both simultaneously more productive and more humane? And I think when you look at across the arc of his life, it was guided by a gigantic, beautiful, beautiful question.

• 1:34:54Tim Ferriss?

  Thank you so much for that story. I'm just envisioning you seeing him sitting in that chair and then later sitting in the chair and how surreal that must have felt.

• 1:35:05Jim Collins?

  It was surreal. And in a way, it almost felt, no, this is Peter's chair. Although I recently have started this thing around here where what I describe as, you know, wicker chair meetings. I don't have a wicker chair, but I'll just sometimes meet with people, you know, that just there's something that would cross paths and it's just like, oh, we're gonna sit down and have tea for a little while. I think of those as wicker chair conversations.

• 1:35:33Tim Ferriss?

  Well, I could spend the next hour on more questions about your experience with Peter, experiences, I should say, but I will go read the foreword because I must have an older edition. I will go find the foreword with some of the lessons learned. Can you give us one of the, one of the things that, whatever comes to mind that you learned from Peter, if you wouldn't mind sharing that and then?

• 1:35:58Jim Collins?

  I'll share with you two.

• 1:36:00Tim Ferriss?

  Perfect.

• 1:36:01Jim Collins?

  Well, gosh, actually, there's so many, because I have 10 of them, but I won't do all 10. One is that don't make 100 decisions when one will do.

• 1:36:18Jim Collins?

  And the idea of that is that Peter believes that you tend to think that you're making a lot of different decisions. But then actually, if you kind of strip it away, you can begin to realize that there that a whole lot of decisions that look like different decisions are really part of the same category of a decision. And that what you want to do is to then be able to say, no, I'm going to make one big decision. That will be replicated many, many times. Because it kind of conceptually captures it. So for example, one version might be, so in my own, in my own case, right? You get, and I'm sure you encounter this too.

• 1:37:01Jim Collins?

  You get lots of wonderful, interesting invitations. Things to go do this, or to go do that, or to speak at this, or whatever. They're wonderful. I mean, never, never be ungrateful for those opportunities. But you have to be very selective about what you do. And so, as I was struggling with, how do you decide which to do? Right? When you're going to say no to most of them. They all can look like a series of individual decisions, but then actually, no, there's actually a couple of really big decisions. Is it a great teaching moment, potentially? And will you learn something? Okay. That's like a meta-decision. And now, you can sort of strip away, is, I was like, actually, the question is, is it a great teaching moment possibility?

• 1:37:46Jim Collins?

  Or is it not? It's very different than, should I go to Austin and do this event? Right? Or should I meet with this person? Or, right? Those are, they look individual, but they're really part of a whole. That's one. And you can think of that as, you know, the simple thing like, you know, what you wear. You could make a thousand different decisions, or you could make one big decision and wear the same thing all the time, I suppose. The, the second is, the one that, and I've shared with, with some others, but it's so powerful. At the end of that day with Peter, I asked him how I could pay him back. And he said, first, I had already paid him back because he had learned. And then he, and you got to remember, this was when we were doing the Thelma and Louise thing. We were really scared, right?

• 1:38:31Jim Collins?

  We didn't know if this was going to work, and I was launching out to try to do this self-directed path, and, and genuinely scared. And Peter said to me, he said, but I do have a request. That you change your question a little bit.

• 1:38:51Jim Collins?

  It seems to me you spend a lot of time trying, worrying about if you're going to survive.

• 1:38:59Jim Collins?

  Well, you will probably survive. And you spend too much time thinking about if you'll be successful. It's the wrong question.

• 1:39:10Jim Collins?

  The question is how to be useful. And that was the last thing he said that day. He just got out of the car and closed the door and walked away.

• 1:39:19Tim Ferriss?

  That was the Peter Drucker mic drop.

• 1:39:21Jim Collins?

  Yeah, it was.

• 1:39:24Jim Collins?

  It was. But you know, I find that I go back to that over and over and over again.

• 1:39:37Tim Ferriss?

  We have, we have, we have many, many, many avenues that we can go down. Hopefully this is not the first and last time that we have a chance to have a conversation like this. But I want to define a term that's come up a few times already now. And that is flywheel.

• 1:39:57Jim Collins?

  Yep.

• 1:39:58Tim Ferriss?

  And you have a monograph, a new monograph, which is out, Turning the Flywheel. Subtitle monograph to accompany Good to Great. But let's start with the term flywheel itself. What is a flywheel?

• 1:40:12Jim Collins?

  So, and also describe why I chose to put creative hours into this. Because there's lots of other things that are in the pipeline still and things that haven't gotten out. Why flywheel extension? Since the flywheel chapter already exists in Good to Great. What, why would I then write a monograph? So, so the, the idea behind the flywheel, so we were looking at, let's go back to Good to Great. We're looking at, the question was, why do some companies make the leap from good to great? And others, right, who are the same, the comparison set, situation, moment in time, resources, industry, customers, did not. Right. So it's always the difference. And when we went into it.

• 1:40:54Jim Collins?

  I had this bias towards believing that a dramatic transformation would happen in a dramatic way. And sort of thinking that there would be an aha moment, a miracle moment, a point of breakthrough. You could really sort of see, you know, there was this grand thing that happened. And that was sort of an assumption. I don't know if I had it so explicit, but it was kind of in my mind. And then when we started interviewing, we were very lucky because we got to interview all the key executives, many of whom are no longer with us, but that were still alive, that had been on those teams when they made those leaps, right? So what was it like when you were there? What was happening when you were there? We coded all the research and so forth.

• 1:41:37Jim Collins?

  And one of the questions was something along the lines of how did you know, you know, what was the point of breakthrough or what was right? And repeatedly, we kept getting a response, which was, I don't get the question. That's a stupid question. There was no miracle moment. There was no moment of breakthrough. I don't think it was as dramatic as it sounds. It was more of a gradual process. It was like an awakening that kind of happened in steps. We just got this over and over again. And began to dawn on me that the way something really dramatic appears to those looking

• 1:42:16Jim Collins?

  in from the outside is different than the way it feels to those doing it on the inside. And so it's like if you're watching an egg, right? And nothing's happening. It just looks like an egg is just sitting there and all of a sudden it cracks open and out jumps a chicken. Well, you could have a big thing, a radical transformation of egg into chicken and visionary leader transforms egg into chicken. But what's it look like from the chicken's point of view? It's just kind of one more step after a whole bunch of stuff that's been happening inside the egg that you couldn't see until it cracks open. So we were observing that the way it looked and the way it felt were different.

• 1:42:56Jim Collins?

  And the way it sort of really happened on the inside, even though you can see the inflection on the outside. The best analogy I could come up with was it was a series of good decisions, supremely well executed, taken with disciplined thought, that added up one upon another over a very long period of time to produce a great result. And so I had this image of pushing a giant, heavy flywheel. And you start pushing it in this intelligent and consistent direction. You start pushing on the flywheel and after a lot of work, you get one giant, slow, creaky turn, and then you don't stop.

• 1:43:39Jim Collins?

  You keep pushing in the sort of the direction of those three circles we talked about earlier, what you're passionate about, what you can be best at, what drives your economic engine. So it's not random pushing. And you eventually get two turns, and then you keep pushing. And you eventually get four, and they start to add upon each other, and then eight, and sixteen, and thirty-two, and sixty-four, and a hundred, and a thousand, and then ten thousand, and then a hundred thousand, and then at some point, all that cumulative momentum, all that cumulative, sort of like this, you can, there's a breakthrough that happens, but how did it happen? What was the one big push that made it go? Is a nonsense question. It would be like asking, you know, what was the one investment that made Warren Buffett Warren Buffett? Well, that's, it doesn't make sense, right? So it's a cumulative effect.

• 1:44:22Jim Collins?

  And so that, and then we observed in the comparison companies, that they bought into the idea of these sort of dramatic moments, or radical transformations, or, you know, cultural revolutions, or whatever, savior CEOs, anything that were trying to jump to breakthrough in sort of one big step, rather than the building of the flywheel. And that was kind of a doom loop. And so we wrote this chapter called "The Flywheel and the Doom Loop," which was chapter eight of Good to Great. And, and it really kind of captured, it was a really neat chapter, because it just, sort of, for me, turned out on its head about how it actually happens, and it came from the research, right? It was all from the research. So then, after publishing Good to Great, and, you know, it changed our lives, and

• 1:45:06Jim Collins?

  I'm very grateful for how many people it reached. But right around the time of its publication, in 2001, it was published in October, September, October of 2001, I was invited up to Amazon. And the flywheel principle was embedded in Good to Great. It's a fundamental principle of how, you know, great companies get built over time, once it lasts and so forth. And I knew the principle. And I was there with executives in Amazon and all I did was teach, right? I don't just taught them the principles in Good to Great and particularly the flywheel. Coming out of the dot com, it's like, don't respond to this as an event. Respond and build a flywheel.

• 1:45:48Jim Collins?

  And great students often take things and make them even better. And what they did was they took the flywheel and then made it their own. And what they did was to say, we're going to harness the flywheel principle that came from Good to Great, but we're going to do it by getting clear on what is our flywheel. And so to really harness the flywheel, then you have to be able to say, okay, so but that's great. The flywheel principle is the principle, but how do you then turn that into your own flywheel? Like, what is the flywheel? And what the Amazon people did, kind of in a more simplistic form, but I'll just grab it here. Essentially, they had this sort of reinforcing loop, right?

• 1:46:29Jim Collins?

  You know, if you lower prices on more offerings, well, then you almost can't help but go down to the next step in the flywheel picture circle going around, right? To increase customer visits. And if you increase customer visits, well, then you almost can't help but get more third-party sellers. And if you get more third-party sellers, well, then you almost can't help but expand the store and extend distribution. And if you do that, you can't help but grow revenues per fixed costs. And if you do that, you can't help but be able to lower prices on more offerings, which is going to attract more customer visits, which is going to attract third-party sellers, which is going to expand the store and extend distribution. You can eventually buy Whole Foods and all the other stuff. You're going to grow revenues per fixed costs and then boom, lower prices on more stuff,

• 1:47:14Jim Collins?

  et cetera, et cetera. Now, the beauty of that was that they got very specific. And what I came to understand was the flywheel principle best comes to life when you can really capture it. But here's the key. People talk about flywheels, you know, we have a flywheel, whatever. And what I came to see is that people didn't necessarily really have a flywheel because they didn't understand something deeply important about how, what a flywheel really is. A flywheel is an underlying compelling logic of momentum. It's not a list of steps. Drawn as a circle, called a flywheel. Rather, there's an inevitability built in.

• 1:47:58Jim Collins?

  If you do A, you almost can't help but do B. And if you do B, you almost can't help but do C. And if you do C, you almost can't help but do D. And it gets driven around because there's an underlying connection. There's a logical sequence that builds dynamic momentum because A drives B, drives C, drives D, and around back to the top of the loop. And that if you can kind of stand back and then say, "We need to engage in the very hard thinking of figuring out exactly how our flywheel turns.

• 1:48:41Jim Collins?

  What is our flywheel?" In a way that truly has that inexorable driving momentum within it. And different organizations will have different flywheels. Different people will have different flywheels. You have a flywheel, right? And then the key is you build it over a long period of time. And the power of a flywheel is that it's an underlying logic. It's an underlying architecture. It's not a single business, right? It's something that can be extended. You can then extend it into new things as you experiment and find new things that will drive the flywheel even further, whether it be going from military bombers to commercial jetliners, in the case of Boeing, but the same underlying architecture.

• 1:49:25Jim Collins?

  Going from memory chips to microprocessors, in the case of Intel, but the same underlying architecture. And so what the flywheel monograph is about is basically after, I like to say to people, just because you're the one who articulated the principle, as we did in Good to Great. We uncovered it, we articulated it, and it's right. But it doesn't mean you yet fully understand it, even if you're the one to bring it forth. After 15, 17 years of really reflecting on it, I realized that my understanding of the flywheel, back in Good to Great, was right but primitive. And so this notion of really, really thinking through the specifics of a flywheel.

• 1:50:12Jim Collins?

  Became something that I really wanted to share with people because I felt that people were talking about it a lot, but not really understanding it. And so that's what that's about.

• 1:50:24Tim Ferriss?

  And just for people who may be wondering, so by monograph, when you say monograph, one way to think of this would be as a short book. It's, I think, forty-six pages.

• 1:50:35Jim Collins?

  About forty, yeah.

• 1:50:36Tim Ferriss?

  Yeah, forty to forty-six pages. And in that, you also talk about, you give other examples and walk through Vanguard, Cleveland Clinic. You did mention earlier, and I don't know if this is in the monograph as well, but possibly asking you about what your flywheel is.

• 1:50:55Jim Collins?

  Well, I thought, knowing you, that you might ask, so I, in my kind of drive for being prepared, I put a little thought into that. So I'd be happy to chat about it. Let me just share with you one thing, though, about the different examples that are in there. They cover such a wide range. We have an elementary school, where a school principal uses it to create results for kids, basically. And you've got healthcare, and you've got startups and whatever. But why a monograph? Here, this is McPhee, I hope would like this idea. A piece of writing has a natural length. A symphony has a length. Gimme Shelter by

• 1:51:37Jim Collins?

  The Stones has a length. You wouldn't say to Gimme, well, we should make Gimme Shelter a seventy-two-minute piece. It's the wrong length for Gimme Shelter.

• 1:51:45Tim Ferriss?

  Mm-hmm.

• 1:51:46Jim Collins?

  And writing is like music. It has an appropriate length for what the music is trying to do, to be. And what I realized back in two thousand and five was sometimes you can have something that is a powerful extension idea or an idea. It really shouldn't be a book. It's not enough to be a book.

• 1:52:10Tim Ferriss?

  Yep, hundred percent agreed.

• 1:52:11Jim Collins?

  Yeah, but it shouldn't be a...

• 1:52:15Jim Collins?

  But it shouldn't be just an article because that's ephemeral because if it's durable. And so we were really struggling. We wrote this thing called Good to Great in the Social Sectors, which was another monograph. And I was like, what are we going to do with this? If we make it an article, it's too perishable and too short. And if we make it a book, it's too long. And then I, well, do you make it a chapter in the back of Good to Great? Well, the problem with that is then all the millions of people who bought Good to Great need to buy another copy of Good to Great. That's not right. So Joanne, my strategic brain, said, well, why don't we create a monograph and publish that? And started thinking about like, remember Common Sense? Think of the impact of Common Sense by Thomas Paine. It didn't have to be big.

• 1:53:00Jim Collins?

  It was the right size. And so I thought, well, why don't we bring back the genre? The monograph size.

• 1:53:08Jim Collins?

  And so we wrote Good to Great in the Social Sectors. I remember printing 50,000 copies and thinking, I don't have 50,000 friends to give it to when it won't sell. And then it ended up reaching lots of people. We decided to do one on the flywheel here. So my own flywheel, if you want to chat about that, I'd be happy to take a cut at describing it.

• 1:53:29Tim Ferriss?

  Yes, please.

• 1:53:30Jim Collins?

  When you do a flywheel, you need to first ask, where's the flywheel going to start? So in the case of Amazon, it's an economic flywheel that ultimately brings stuff to more customers and so forth. It starts with lower prices on more stuff, right? But Cleveland Clinic begins with getting the right medical professionals that can fit in their culture. Giro Sport Designer Intel starts with great innovative products. So the start of the flywheel is a key question. And in my case, it's curiosity fed, big questions. That's where my flywheel starts. It all starts with what am I curious about? That has to be at the beginning of everything. And if I'm really curious about something,

• 1:54:13Jim Collins?

  well, then I can't help but want to learn about it and do research on it. And that will throw me into the research. If I do the research right and really, really throw ourselves into it and stay on those creative hours of the research, well, then I can't help. But have ideas and insights, concepts that come out of that research. And then if I have those, then I can't help but want to write them and teach them and share them. And that means going through the suffering of writing, right, as you know, right? And to write them well and to wrap them well and to get the concepts in the right vessels.

• 1:54:58Jim Collins?

  I can't help but want to do that. And if I can't help, if I do that, well, then I can't help but have at least some impact on the world if it's well done, because that's the power of writing. You never know where it goes. And if you have impact and reach in the world, well, then you can't help but have funding that comes from that, meaning there's some economics that comes that allows you to do what? Fund and feed your next curiosity big questions, which then leads to the research, which then leads to the chaotic concepts, which then leads to writing and teaching, which then leads to impact on the world, which then generates funding, which then allows me to fund the next question. And then it's perpetual.

• 1:55:40Tim Ferriss?

  Is it also the case that in some cases, I'm struggling with how to ask this question because it just occurred to me, but I suppose it is that, is it as true that there are negative flywheels as there are positive, sort of these vicious cycles that are reinforcing within companies that people should be aware of? Or is the flywheel, as you use it, a virtuous cycle? Should people be also looking at sort of disabling flywheels that they might have organizationally?

• 1:56:19Jim Collins?

  So, the answer, it's a great question. Actually, I think it could be really interesting to think about dysfunctional flywheels, right? And really think about those. I would, I'll offer two things. The first is that... If a flywheel doesn't seem to be working, you have to kind of get the diagnosis right. Because it could be that the flywheel is just, you haven't got the flywheel right. Or it could be that the flywheel's fine, but think about the inexorable logic. Imagine you could score each of the five or six components on how well you're doing it. Say, one to 10. And suppose your scores are 8, 9, 10, 9, 3, 9. Well, the very nature of the flywheel, the fact that it's the reinforcing logic

• 1:57:03Jim Collins?

  that builds incredible momentum over time, has a downside, which is that that 3 stops the whole flywheel. And so, you have to be able to say, "Well, maybe we have a flywheel that's working, it's a great flywheel, but the problem is we're not executing on this piece of the flywheel, and therefore, the entire flywheel stalls or stops." So that's an important thing for people to think about. You can't, if you do 5, 6 to the flywheel well, you don't get 5, 6 to the momentum, you get none. And that's sort of the downside of the flywheel, because you got to execute on all of it. Now, going to this other question. In Good to Great, and a lot of this concept came from Good to Great, which is why we go back to it a lot. There are all the other books, Built to Last, Great by Choice, and so forth. But in Good to Great,

• 1:57:47Jim Collins?

  and then later, we explored it further in How the Mighty Fall, which is studying how great companies fall. We described this other pattern we saw in the comparison companies, or in the companies that fell, which is a doom loop. So you have the flywheel on one hand, and you have the doom loop on the other side. And yes, and the doom loop, though, tends to have the following pattern. You are grasping for some sort of salvation. A new savior, a new program, a new strategy, a new direction, a new right, because things aren't working. And because it really doesn't have underlying flywheel logic to it, it doesn't really get any traction. There's a burst of hope and, "Well, gosh, you know, maybe this will really work." And then that's false hopes dashed by events.

• 1:58:31Jim Collins?

  And then that produces kind of a reaction without really understanding what really worked, which then leads to another grasp for salvation. And what happens is, you drive yourself further and further down in that grasping for salvation, which is stage 4 of 5 stages of when great companies fall. And that eventually leads to companies really going to the bottom. So while you can have actually, because yes, again, you always have the comparisons, the Good to Greats and the comparisons, the Built to Last and the comparisons, the comparisons often, in fact, double down on a doom loop. And drive themselves into the ground.

• 1:59:06Tim Ferriss?

  Hmm. Thank you for clarifying that. So I have just a, just a few more questions. Are you okay to go for another five to 10?

• 1:59:15Jim Collins?

  Sure. You may want to sort of zoom out on something else of just sheer curiosity.

• 1:59:20Tim Ferriss?

  Oh, yes. That's exactly where I'm going. And it is, I've observed you to be in the research for this and your writing, also in this conversation, very data-driven, very methodical.

• 1:59:38Tim Ferriss?

  Someone who, who, who trust in the data, trusts in the data. And there are two things that I'd love for you to put in context or explain for me, which are, which, which at least at first glance, don't seem to fit. And it could be that I'm misperceiving who you are, or it could be that I'm misperceiving how things transpire. The first is, well, there, there are two that jumped out. The first is you having mentioned that you got engaged four days after your first date.

• 2:00:09Jim Collins?

  Yeah.

• 2:00:09Tim Ferriss?

  The sec, the second was around 35, 36, your Thelma and Louise moment where you, it's, you had less than $10,000 in the bank and you've kind of threw this Hail Mary.

• 2:00:21Jim Collins?

  Yeah.

• 2:00:21Tim Ferriss?

  Those both seem very out of character. So is it that you looked at the downsides, decided you could survive and you ran some type of calculus? How did these two things happen? Given that you seem to be encoded, to be very data-driven, to think through the contingencies, to test the assumptions and so on and so forth?

• 2:00:44Jim Collins?

  So I think those are related, but very different situations. And I think they, they, one of them is consistent with one of our principles and one of them, I don't know where to put it.

• 2:00:55Jim Collins?

  So, uh, so one of the key principles from all of our work is the notion that life, everything, you have to kind of, you know, great things build by disciplined people, disciplined thought, disciplined action, then building it to last, and then you multiply times return on luck, luck, L-U-C-K. And it's, and by the way, the evidence is very clear, the big winners are not luckier. We were able to establish that by quantifying luck and studying it. The big winners get a higher return on their luck than the comparisons, but they don't get more luck, per se. Now, uh, in, and I've mentioned the notion of who luck, uh, all the way through our conversation and lessons from great mentors. One of the key things we've learned in our works, everything starts with people, disciplined

• 2:01:40Jim Collins?

  people, but also just people. And, uh, I don't know how you quantify certain aspects of just things about people. I mentioned earlier friends in my marriage, and I just, you know, what time with people you love, meaningful work with people you love and respect. And so with Joanne, um, we found each other, we, we had, we both came from families that they were clearly not built to last families. And, and we, we met at, uh, we met in Boulder very briefly, but we really met in, in college at Stanford. And our first date, uh, was a run.

• 2:02:22Jim Collins?

  And I wasn't really a runner, but I really wanted to be around Joanne, but I couldn't, I was too shy really to ask her out. But so she eventually said to me, I said to her, so are you still running? And she said, yes. And I said, uh, well, I'm thinking of upping my mileage, which was true, because I had just thought of it and talked about it. And so she said, would you like to go for a run? And I said, sure. And I went over to her dorm room and she took me out on an eight mile run.

• 2:02:57Tim Ferriss?

  Oh, you wanna runs.

• 2:02:58Jim Collins?

  Yeah, you wanna run. And it was the, and anybody who knows the Stanford campus knows that if you go out sort of towards Page Mill Road, you go immediately uphill out of campus. So we went three miles uphill and, and then sort of had a, about the three mile mark, it became very clear to her, I wasn't really that much of a runner. And so we walked five of the eight.

• 2:03:26Jim Collins?

  And we got to know each other really well. And that was my senior year and her junior year. And by Thursday, we had simply decided to throw our lives in together. I don't know where the data comes from that. I don't know the evidence. I just had this sense and, and, and I think Joanne did too, of this, this incredible stroke of luck that these two people had, I just, I mean, we found each other and it was just an instinctive thing and we just did it. It was truly, and it's funny because Joanne later was the, uh, the Nike athlete. She won the Ironman in 1985. Uh, she was in the original just do it campaign.

• 2:04:11Jim Collins?

  So maybe she was already thinking, just do it, right? We're gonna get married. And so, so anyways, uh, and we got, we got married about six months later. And I can't say where the evidence comes on that, but it's hands down the best decision I ever made. And, but then the, the key is the commitment to make it work. Cause relationships are about, I mean, you, you just, the unwavering, we will not fail at this marriage, no matter what. And you have to have some place in your life. You know, in, in Good to Great, I wrote in the acknowledgements, one of my favorite

• 2:04:54Jim Collins?

  paragraphs I've ever written. And it's at the end of the acknowledgements and I was gonna write about Joanne. And I wrote a line, which is along the lines of,

• 2:05:08Jim Collins?

  Success in the end for me is that my spouse likes and respects me ever more as the years go by. And I hope by that measure to be as successful as she is. So I don't know where that comes from.

• 2:05:34Tim Ferriss?

  Yeah, well, you said at the very beginning of this conversation, or maybe you're quoting Wittgenstein, I can't recall, but the many of the most important things transcend the capabilities of language, right? And this certainly seems to fall into that category in some respects.

• 2:05:55Jim Collins?

  Yeah. The big bet, so one of the things that we learned in Great by Choice with my co-author Morton Hanson, another great stroke of huluck in my life, he's a tremendous, he's a genius research methodologist and a great, great partner on Great by Choice. One of the things that we struggled with was the role of big bets and the role of, you know, kind of new directions and innovation and so forth. And one of the things that we found is the importance of empirical validation, which is really different than pure analysis, and it's a principle we call fire bullets then fire cannonballs.

• 2:06:36Jim Collins?

  And the idea being you have a certain amount of gunpowder and you have a ship bearing down on you. And imagine you take all that gunpowder and you put it in a big cannonball and you fire at that ship and it misses and you turn and you look back and you're out of gunpowder. And now you're in real trouble. But imagine if instead what you did was you fired bullets and you fire your first bullet and it's 30 degrees off and then you take another bit of gunpowder and you fire a second bullet and it shoots out there and now you're only 10 degrees off and then you take a third bullet and you fire and you put it in and it hits the side of the ship, ping, you know you have a calibrated line of sight. And now you take your gunpowder, whatever you have, and you put it in a cannonball

• 2:07:20Jim Collins?

  and you fire it on the calibrated line of sight. And what we learned is that, and I'll tie this into the Thelma and Louise moment, because... What we learned in our research is that one way you extend a flywheel is you're firing bullets and then every once in a while you get calibration and then you fire a big cannonball on a calibrated line of sight which then adds a big burst of momentum into a whole new direct, not necessarily new direction because the flywheel's turning, but it gives you an empirically validated big bet that can give you massive momentum. And the key there is, notice though, it's empirical validation. And that empirical validation are the bullets. If we go back to the Thelma and Louise moment, there is the moment of gulp when you fire

• 2:08:04Jim Collins?

  the cannonball, right? I mean, you can't just sit there and only fire bullets. There comes a point when you gotta fire the cannonball. In that case, I was really scared because if the cannonball didn't hit, I didn't know what was going to happen. We were really felt out there. But there were also six or seven years of bullets that had been the research we had done, the teaching in the classroom, and also some early response to Built to Last. There's no guarantees yet, but early response of people really resonating with the ideas, right? There, it wasn't like it just came out of the blue. There were bullet, bullet, bullet. There was enough calibration that this was not crazy.

• 2:08:47Jim Collins?

  The question was, would we have the guts at that moment then to take all of our gunpowder, put it into one big cannonball, and go? And there's a critical lesson I got from one of my mentors, another stroke of hullock at Stanford, two great professors that were there with me when I was teaching. Phil Lazzier, who taught me about the importance of relationships first in life. And there was this guy named Erv Grossbeck. And I asked Erv, do you think I should keep enough capital alive here at Stanford that if this doesn't work out, I could come back? And Erv said to me, an option to come back has negative value.

• 2:09:31Jim Collins?

  And I said, I thought options always have positive value. He said, no, not on a creative path.

• 2:09:37Tim Ferriss?

  Oh, that's a really, that's such an important point.

• 2:09:39Jim Collins?

  Exactly. And he said, if you have the option to come back, it will change your behavior. And you're doing a low odds game, which means you, you have to put all in 100% full cannonball, go off that cliff. Otherwise, you're going to hold something in reserve. And when it gets really scary, you're going to pull back. Option is not in your interest. So we took all the gunpowder and fired it out and there was no retreat. And then when you're making the decisions, you're out there like, how are we going to get the car to the other side and the, then the Thelma and Louise jump? Well, there's no tether back. You have to make it.

• 2:10:25Tim Ferriss?

  And the good news is you've done a hell of a lot of calibration over six to seven years.

• 2:10:29Jim Collins?

  Exactly.

• 2:10:30Tim Ferriss?

  Just, just to underscore for people out there like, I'm quitting my job.

• 2:10:33Jim Collins?

  Yeah, yeah.

• 2:10:34Tim Ferriss?

  This moment, it's like, well, wait, hold on.

• 2:10:36Jim Collins?

  Correct.

• 2:10:37Tim Ferriss?

  There, it was a burning the ships aspect to it, but it was very calibrated.

• 2:10:41Jim Collins?

  Very calibrated. I, I don't know about the four days, but the rest was calibrated.

• 2:10:49Tim Ferriss?

  Well, that was calibrated, just perhaps not with your prefrontal cortex as much.

• 2:10:53Jim Collins?

  Right.

• 2:10:54Tim Ferriss?

  Uh, there's a lot, lot, uh, well, anyway, we could, we could talk about, we could, we could talk about, dive into that another time. But I mean, there's, uh, thinking fast, thinking slow. There's, there's, there's a lot to decision making, only part of which is, is, uh, part of which we're able to express with, with language. But what a story. Uh, Jim, this has been so much fun. I highly encourage people to read all of your work, but the newest, and I, I think this is a very, very, well, I don't think, I mean, it is a very important concept, the flywheel and the expansion upon that. So turning the flywheel, people can find that everywhere books are sold. Uh, they can certainly find you at jimcollins.com.

• 2:11:38Tim Ferriss?

  Uh, many more questions I'd love to ask sometime, but, uh, I, I think this is a very solid session for me to reflect on. I have tons of notes sitting here in front of me. I've been trying to take my notes quietly. Uh, but is there anything else you'd like to? Say, ask of people, suggest, any parting words before we wrap up this conversation for now.

• 2:12:04Jim Collins?

  If I were to kind of step way back on everything, there's a line that Joanne uses a lot, which is "life is people." And we've talked about who luck and great mentors and personal boards of directors and getting married after four days and great friendships and being on really great level five teams and whatever. But, you know, we get so wrapped up in all these things we're doing or things we're trying to get done. But life is really short. You know that. You named your company after the guy who wrote it, Shortness of Life.

• 2:12:45Jim Collins?

  And, you know, when you sort of add it all up, the one thing I, with everything we've talked about in this, I still think it all goes back to the first who. Life is people. And life at its best is about doing meaningful things with people you love.

• 2:13:07Tim Ferriss?

  Here, here. Time with loved ones, high simplicity, time and flow state. Ultimately, it's the people. And Jim, is there anywhere online besides jimcollins.com where people might learn more about where you're up to or say hello? Are you on this amazing, yet sometimes dreadful, technology, sometimes referred to as social media?

• 2:13:33Jim Collins?

  I'm firing bullets.

• 2:13:37Jim Collins?

  I'm going to be, I fired a few bullets. I'm going to fire some at this point. I haven't done a lot with it. So I'm kind of in the calibration stage. And the question I go back to on that with the social media is, I've been struggling, remember I said earlier, don't make a thousand decisions what or one will do. What I have been struggling with is how, if I were to use that tool, do I make it great teaching moments? And for me, if I can kind of bullet the cannonball to that, then I'll probably do more with it. And if I can't, well, I've been fine without doing a lot.

• 2:14:16Tim Ferriss?

  And where are you currently firing bullets? Then I have some thoughts. But is it on Twitter? Is it elsewhere?

• 2:14:24Jim Collins?

  There's, we have a Twitter account, which I think is called Level 5 Leaders.

• 2:14:29Tim Ferriss?

  It is, @level5leaders.

• 2:14:31Jim Collins?

  Yeah, @level5leaders. We have a Jim Collins Facebook page where Amy on my team helps me think about some postings, but we haven't put up a lot, so I wouldn't encourage that there's necessarily a ton there at the moment. We'll be firing bullets, stay tuned. But our website, jimcollins.com, everything there is designed to share and teach the ideas, and it's all really built around the ideas. When you go there, you know, it's an ideas-driven website, and we've taken a lot of care to try to make it a place where students of the work can come and have almost like cyber

• 2:15:11Jim Collins?

  office hours, if you will, and really learn, and that's what it's designed to do.

• 2:15:17Tim Ferriss?

  So I will say just a few things related to social media. So the first is, I've seen some incredible thinkers who've done a lot of deep work go down in flames after tapping the vein with social media, so I would say caution is warranted. That would be my first observation, because you have a history of saying no so well, and you have so many policies that have served you in providing the space for the joyful solitude of deep work. So I would just say be very careful, and I was gonna say, when you were talking about burning your bridges, that someone had said to me, you know, there are three addictions

• 2:16:01Tim Ferriss?

  that are the most dangerous addictions of all: heroin, alcohol, and a monthly salary. But I would add to that, social media. There are, however, some examples, and I'll just give you one, of people who I think do an exceptional job of teaching using short form. And there's one person on Twitter, there are many, but I'll point to one, who's a close friend of mine, his name is Naval Ravikant, and his handle is @naval, N-A-V-A-L, like Naval Academy, but @naval. So he might be someone to check out, but, so, people can... Follow you at @level5leaders. We will link to, for people listening, all of these

• 2:16:40Tim Ferriss?

  various sites, all of the work, including, of course, turning the flywheel in the show notes, as always, at tim.blog/podcast. You can just search Jim Collins and this episode, and all of its notes will pop right up. Jim, this has been such a pleasure, and has given me so much to think about, and I'm so, so grateful for having spent the last two hours with you.

• 2:17:06Jim Collins?

  Well, I'm actually very grateful as well, and you're right, I don't actually say yes to very much at all. I've only fired bullets in this genre, and this is one that's like, I'm going to commit to really preparing and having a good conversation with you. And part of it is because what I really learned about you is the care and depth of your preparation, and the fact that then you come into it with the idea of really wanting to have a conversation where you are present and engaged with ideas and with thoughts. And so, you know, that notion of prepared curiosity, I think is a great strength, and to be able to join you

• 2:17:51Jim Collins?

  in that, for me, is a real pleasure. And we're going to count at least half of this as creative hours.

• 2:17:59Tim Ferriss?

  Definitely. Absolutely. And this podcast is certainly, I have to figure out which piece of the puzzle, or I should say, rather, which component of the flywheel it is, but it is certainly somewhere, because I feel drawn inevitably to have, or to strive for, this type of conversation. And it just gives me so much joy to be able to spend time with someone like you and share it with everyone listening. So, thank you again for that. And to everyone listening, you can find links, notes for everything at tim.blog/podcast for all of the goodies that we discussed in this episode. And until next time, thank you for tuning in.

• 2:18:42Tim Ferriss?

  Hey guys, this is Tim again. Just a few more things before you take off. Number one, this is Five Bullet Friday. Do you want to get a short email from me? Would you enjoy getting a short email from me every Friday? That provides a little morsel of fun before the weekend. And Five Bullet Friday is a very short email where I share the coolest things I've found or that I've been pondering over the week. That could include favorite new albums that I've discovered. It could include gizmos and gadgets and all sorts of weird shit that I've somehow dug up in the world of the esoteric as I do. It could include favorite articles that I've read and that I've shared with my close friends, for instance. And it's very short.

• 2:19:25Tim Ferriss?

  It's just a little tiny bite of goodness before you head off for the weekend. So if you want to receive that, check it out. Just go to fourhourworkweek.com. That's fourhourworkweek.com all spelled out. And just drop in your email and you will get the very next one. And if you sign up, I hope you enjoy it. This episode is brought to you by Peloton, which I've been using probably for about a year now. Peloton is a cutting-edge indoor cycling bike that brings live studio classes right into your home. You can also do on-demand, which is what I do, we'll come back to that. So you don't have to worry about fitting classes into a busy schedule or making it to a studio or gym with a hectic or unpredictable commute. I, for instance, have a Peloton bike right in my master bedroom at home. And it's one of the first things I do many mornings.

• 2:20:10Tim Ferriss?

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• 2:20:52Tim Ferriss?

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• 2:21:34Tim Ferriss?

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• 2:22:18Tim Ferriss?

  This episode of the Tim Ferriss Show is brought to you by LinkedIn. The right hire can make a huge impact on your business. The wrong hire can crater your business. And I have seen example after example from thousands of my readers at a minimum where they have told me stories of how finding the right person at the right time, and in some cases, not even asking, "What should I do?", but asking, "Who should I find?", because that person can help me determine what exactly to do more intelligently. And I've had a chance to hire two such people in the last year, and that has just made my business take a quantum leap forward and my complexity in my personal and business life get cut dramatically.

• 2:23:03Tim Ferriss?

  And this type of simplification cannot be overvalued. We think a lot about hiring, and I think a lot about hiring, and it is a skill that I've had to learn. It is important to find the right person, but where do you find that person? You can post a job on a job board and hope that that right person finds your job, that they are on the internet, happening to scan something here and there and then find you. But, think about it, how often do you hang out on job boards? The answer is probably not very often. So don't leave finding someone great to chance when you can post your job exactly where people go every day to make connections, grow in their careers, and discover job opportunities. That is LinkedIn.

• 2:23:43Tim Ferriss?

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• 2:24:26Tim Ferriss?

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