by Ken Fisher
Does your potential horse have an exciting business vision? One you believe in so much, you’d put your own money into it? (You don’t have to, but would you?)
Does your horse do a good job of firing himself from jobs and delegating? This is vital. Review Chapters 1 and 2 on founders and CEOs and make sure your guy (or gal) is exhibiting most if not all of the required attributes.
Has your horse failed before? Failure is OK! If your horse has failed, tried again, and failed again (but differently from the first failure), it shows diligence and a learning curve. Don’t hitch to someone who keeps failing in similar ways. Learning from his failures (like Herbert Dow from Chapter 1) may bone up your horse for victory. Even Sam Walton stumbled his first time out the gate.
Once you’ve found the right person to drag you along through his or her success, go with your gut. Either you trust and completely admire this person or you don’t. If you do, be endlessly loyal. That’s what a CEO demands from a ride-along as a quid pro quo for being the one the CEO can’t do without. If you can’t find it within you to entrust your future success to the fate of one leader, you may be better off taking the established firm route. That works! But the bigger bucks are definitely in being a ground-floor ride-along.
BE THE RIGHT GUY
So you found the firm and horse. How do you become the one who gets to ride along? How do you become the one who catches the visionary’s eye? The one he can’t do without? Again, it’s loyalty! Loyalty today is more valuable than it has ever been because it’s scarcer. Ever since the 1960s, our society has extolled the virtues of whistleblowers, activists, he who quits and goes out on his own, protesters, radicals, someone who is no patsy, someone who tells the big guy to blow—you get the point. Wall Street (1987), The Firm (1993), and The Informant (2009) are just a sampling of movies playing to the fantasy that the boss is bad and he who upends him is good. That aims squarely at the CEO, who in turn, more than ever, values loyalty.
Loyalty Goes a Long Way
Successful ride-alongs live and breathe the firm’s vision—and not just superficially or for show (which is why you need a firm you love in a field that excites you). Your colleagues should point to you and say, “That guy is on board,” but not think you’re witlessly drinking the Kool-Aid. CEOs and other senior managers (if you aren’t one yet) want to know for certain you’re beyond “in it for the long haul.”
Loyalty implies trustworthiness—what’s most important. If early on you can’t be trusted not to spill the beans on the impending Christmas party’s details, no one will trust you later with details for a top-secret product launch. Be loyal, but give feedback honestly. Successful CEOs rarely hear no much. Hence, many super successes, not just CEOs, go a bit bonkers. Take Michael Jackson and Madonna—for a long time, no one told them, “You know, I think what you’re doing is a really bad idea.” Jackson had enablers up to the very end. This happens to CEOs surrounded by fearful yes-men. You must be brave enough to say no, but loyally.
Be loyal, but give feedback honestly. Don’t be afraid to say, “That’s a bad idea.”
One of the legendary things that made Ballmer so invaluable to Bill Gates was his ability to politely tell Gates when he was wrong while still being and seeming ever-loyal.
Munger is known at Berkshire as “The Abominable No-Man.”11 But don’t just say no to be contrary! Say no and bring new insight. If you’re loyal and trustworthy with a good track record of unique insight, the CEO will listen and love you. You must truly believe, in your heart, that your firm is right and just and holy; otherwise, you won’t make a good ride-along. You must believe your firm is making the world better. That you’re making your CEO perform better. That any shortcomings can be overcome—no obstacle is too great. And that while the firm isn’t perfect, its benefits overwhelm its shortcomings, and those shortcomings can be fixed.
Ride-alongs can’t grouse or complain. All you can do is present a strategy to fix what irks you. Ride-alongs aren’t bitter—they’re rational but enthusiastic firm cheerleaders. If you don’t think you can feel that way about your CEO and firm and you want this road, it’s time to find another firm or horse—or both. If you’re sarcastic, take a different road.
Be Flexible
If you’re an engineer who only wants to write code, it’s tough to ride along. The CEO’s sidekick must know or learn sales, marketing, branding, manufacturing, supply-chain management, you name it. Jack Welch made this management style the one to emulate. His managers ran one division, then rotated elsewhere. He had depth guys (and gals) who never rotated but had deep, unmatched knowledge in their area. But he also had breadth guys and fostered that. In essence, he was creating an army of ride-alongs and a stable of potential future CEOs—not only for his firm, but for any major American firm. Who wouldn’t want a Jack Welch School of Management ride-along leading their firm?
Will Do . . . Not Can Do
Which raises another point—one huge at my firm. I want people with a will-do attitude. Note I said will do not can do. There’s a difference. Can do means capacity and capability. That’s nice—cuts it at some places. Not with me and not at GE. When Jack Welch said, “Bob, love your work on microwaves and appliances. Kudos! But I really need you in water now, particularly emerging markets purification plants. You’ll be stationed in Djibouti City. Okey dokey?” Bob didn’t say, “OK, Jack. I can do that.” Bob knew nothing about water purification and couldn’t find Djibouti with both hands and an army-issued GPS. But Bob happily said, “Great, Jack. Yes, I will do that.”
Can do is what’s on your resume. Will do means you eagerly stretch beyond—outside your comfort zone. You jump. You will complete the task. You will do what’s important for the firm, whatever it is. You will take relevant skills and talent and get on the learning curve, fast. You will hire people, perhaps smarter than you, who know more than you and can make Djibouti a success. It isn’t about you—it’s about the firm and the CEO’s success. His or her success is yours. It’s a little about you because you get to go on a roller-coaster ride that, should you survive, makes you better and ready for the next will-do task. But in essence, it’s about doing what you will for the firm and CEO, not what you know you can. Huge difference.
Have a will do attitude, not a can do attitude.
At My Firm
More than 25 employees at my firm have become millionaires, several of whom retired under age 40 to never work again. One of those got bored, returning to work here. Some are much wealthier. Above them all is Jeff Silk, an archetypal ride-along.
Fifteen years my junior, Jeff was referred via Mike Brusin, a professor and lifelong friend of mine, later a professor of Jeff’s. (Your past professors can be good reference sources to seek someone to ride with.) Early on, Jeff could barely get his socks to match on a daily basis (seriously). But he never stopped improving, moving forward, and trying while demonstrating loyalty. He checked his ego at the door every morning. He did it all: entry-level research, computer hardware, trading, managing trading, managing service, running our institutional division, and being president and chief operating officer. Now he is Vice-Chairman and Co-Chief Investment Officer and can do whatever he wants in the firm. He has never worked harder than he does now—and he’s never been happier. But if I ask, he’ll do anything.
I’ve never had to worry about where Jeff is coming from. If I asked him to do anything, it would be done. Never once have I sensed any envy on his part toward my relatively much greater wealth and notoriety. And he says he has never felt any. Jeff has been here over 30 years and is worth somewhere upside of $150 million, which makes him richer than all but a tiny handful of the most famous entertainers. He has an adoring wife (his teenage sweetheart), three great kids, a spectacular home—a great, balanced family life that CEOs rarely can have. He lives a version of the American dream. He feels great about his life. He can be very tough, but there were tears in his eyes when we threw him a little 25-year anniversary party. You should go where you
will have tears in your eyes 25 years from now, feel good about yourself, and be as rich as Jeff is. It’s hard to do better.
Good ride-alongs live the will do. They don’t whine about shipping to Djibouti. They say, “Done.” They volunteer for the ickiest and most unglamorous tasks and don’t complain that it’s after 5 PM. You may think this jeopardizes your standing, but believe me, the guy you want to ride along with notices when you will happily do otherwise nasty tasks. That’s a guy (or gal) loyal and wanting to go above and beyond and do what’s best for the firm and CEO.
’Til Death
Being a good ride-along really is like being a good spouse. A good spouse or ride-along does what’s right, first and foremost, and is loyal. She knows when her partner is being an idiot and isn’t scared to tell him. (I say “her” because I know which side my bread is buttered on.) He or she has a will do attitude (e.g., “Yes dear. I will clean the gutters”; “I will watch the Ryan Reynolds flick where he isn’t an action hero blowing up bad guys and everything is exciting, but the one where he plays a romantic lead and nothing explodes for three dreadful hours”). A good ride-along or spouse sees the other for all his (or her) faults and still loves him (or her). Being a good ride-along is like getting married—only these relationships often last longer and pay better!
RIDE-ALONG READING
I’ve just given you the basics. There’s plenty more you can do to research and prepare for this road. The following books provide guidance as you plan your ride-along route.
Good to Great by Jim Collins. You need to understand what makes a good company versus a great one—it’s better if you ride along at a great one. Collins tells you what to look for in a firm that’s likelier to become great.
The Five Dysfunctions of a Team by Patrick M. Lencioni. Is the management team you’re riding along with likely to make it? Or are they circus clowns? Read this book to avoid the clowns and figure out how to find and join the right team.
What Got You Here Won’t Get You There by Marshall Goldsmith. A must! This book teaches how to evolve over time into an ever more valuable (and well-paid) ride-along. And if you want to ride-along to CEO-dom, this book helps, too.
How to Win Friends & Influence People by Dale Carnegie. I recommend this for salespeople, too, but it’s a must for ride-alongs. It’s simply the best guide to learn how to positively assert yourself, ask the right questions, negotiate, and deliver more than your boss, clients, and employees expect.
The Guide to Riding Along
Just because you’re riding along doesn’t mean you’re just skating by or riding coattails. Good (i.e., rich) ride-alongs are accomplished in their own right. Like becoming CEO, this takes time, grit, determination, and a well-enforced ego. Ride-alongs frequently do dirty work, but don’t get CEO-like accolades. Don’t fret—ride along well and you’ll be more than compensated. Follow these steps:
Pick the right horse to hitch to. More important than the right field or firm is finding the right guy or gal to ride along with. It’s like marriage! Make sure your horse has vision and skill, and you can trust and live with him/her most of your adult life.
Pick the right firm. More than any other road, picking the right industry, field, and firm is vital here, because ride-alongs are there a long time. You may get carried to a new firm, but you’d still likely be in the same field. Do your research and you’ll stick where you land.
Choose—established or new. You needn’t be a ground-floor ride-along like Yahoo’s Skoll, Tesla’s Straubel, or Microsoft’s Ballmer—though it’s lucrative. If you fear the added risk of a new venture, you can ride along at an established firm—making not billions, but potentially very many millions.
Be loyal. Be loyal and trustworthy above all. But learn how and when to say no. Ride-alongs are picked for loyalty, capability, plus honest feedback and criticism. Be a reasonable and rational firm cheerleader.
Have a will do attitude. Go beyond can do. Stretch yourself. Do what’s right for the firm. Volunteer! Lots of others do what they think their ability allows. Do more than that.
NOTES
1. “The World’s Billionaires,” Forbes, http://www.forbes.com/billionaires/#/version:realtime (accessed September 6, 2016).
2. “The Forbes 400 2016,” Forbes, http://www.forbes.com/forbes-400/list/#version:static (accessed October 6, 2016).
3. Securities and Exchange Commission, Schedule 14A Information for Facebook, Inc. (May 2016), https://www.sec.gov/Archives/edgar/data/ 1326801/000132680116000053/facebook2016prelimproxysta.htm (accessed September 6, 2016).
4. “The Chernin File: His Salary, Severance Package and Movie Deal,” Gigaom (February 23, 2009), https://gigaom.com/2009/02/23/419-chernin- file-his-severance-package-and-salary/ (accessed September 6, 2016).
5. News Corp, “The Best and Worst Managers of 2003: Peter Chernin,” BusinessWeek (January 12, 2004), http://www.businessweek.com/magazine/content/04_02/b3865717.htm (accessed May 20, 2008).
6. David Weidner, “Pottruck Ousted from Schwab,” MarketWatch (July 20, 2004), http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B8F3F0844-2338-44F0-9209-9861036087D4%7D&siteid=mktw (accessed July 22, 2008).
7. Securities and Exchange Commission, Schedule 14A Information for Tesla Motors, Inc. (May 31, 2016), https://www.sec.gov/Archives/edgar/data/1318605/000119312516543341/d133980ddef14a.htm (accessed September 6, 2016).
8. J. P. Donlon, “Heavy Metal—Interview with Caterpillar CEO Donald Fites,” Chief Executive (September 1995), http://findarticles.com/p/articles/mi_m4070/is_n106/ai_17536753 (accessed May 20, 2008).
9. “3M 2016 Notice of Annual Meeting & Proxy Statement” (March 23, 2016), https://www.sec.gov/Archives/edgar/data/66740/000120677416005067/ threem_def14a.pdf (accessed September 6, 2016).
10. “Quest Diagnostics Notice of 2016 Annual Meeting and Proxy Statement” (April 8, 2016), http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=6&cad=rja&uact=8&ved=0ahUKEwjhx4CC-fvOAhVX-2MKHSOUDoMQFghHMAU&url=http%3A%2F%2Fphx.corporate-ir.net%2FExternal.File%3Fitem%3DUGFyZW50SUQ9MzMzMTMwfENoaWxkSUQ9LTF8VHlwZT0z%26t%3D1%26cb%3D635966949084609632&usg=AFQjCNHpzHkykLBbVp6tsBz9pTP3q6jKxQ&bvm=bv.131783435,d.cGc (accessed September 6, 2016).
11. “Charles Munger Profile,” Forbes, http://www.forbes.com/profile/charles-munger/ (accessed September 6, 2016).
4
RICH . . . AND FAMOUS
Seeking fame and fortune? Don’t mind abdicating privacy? Try cruising the rich-and-famous road.
Rich and famous is a popular dream. But most rich folks aren’t famous. They own trailer parks or small businesses. They’re accountants or doctors, not living fantasy lifestyles. We think big limos, Super Bowl rings, Oscars, owning sports teams or making movies. This road is the stuff of grade-school career aspirations— baseball player, actress, Oprah, Tiger. This road’s riches can be planned for, though realistically it’s closed to most by the time we’re adults. It requires a young start. Kids dream of stardom. Such kid dreamers kid themselves. Be warned—though this road’s riches are legitimate, it’s hard work, and the odds of success are super slim.
This road has two forks. One is talent—LeBron James, Beyoncé, and Jennifer Lawrence. The other is media mogul—Ted Turner, Rupert Murdoch. The media mogul road is more attainable—you needn’t throw a tight spiral or look like Charlize Theron. You just need what any successful businessperson needs—perseverance, smarts, and luck. It happens later in life, too. But that doesn’t make the talent road less tempting.
There’s an occasional crossover here—talents who become moguls and vice versa, though it’s rare. Oprah (worth $2.8 billion)1 is the richest talent-mogul crossover. She parlayed a newscaster career (talent) into a talk show she produced (talent and mogul). En route, she starred in movies (notably The Color Purple, as a talent) and as Broadway producer (also The Color Purple, now as a mogul). Such blending is rare. Martha Stewart (worth $220 million)2 is a talent in her own mogul world. Talent/moguls tend toward bigger wealth than pure talents. And
don’t forget those diminutive twins—Mary-Kate and Ashley Olsen. I’m too big a fuddy-duddy to know which is which, but their production firm and clothing lines make them crossovers—worth $150 million each.3
Another recent crossover, but this one initiating from mogul land, is pop-culture phenomenon Mark Cuban (net worth $3.2 billion).4 In addition to his other fine crossover qualities, Cuban is tough—cares not one whit what his critics say—even has a beyond-great sense of humor about it. In this sense, he’s a textbook founder-CEO (Chapter 1). The former bartender began building wealth as a dot-com cowboy, founding Broadcast.com, a web radio station, with a college pal in 1995. Just before 2000’s dot-com crash, he made a timely sale to Yahoo! for $5.7 billion in stock.
Not only was his firm’s sale well timed, but he didn’t wait for Yahoo! to tank in the tech crash. He swapped a huge chunk of change with Ross Perot for the Dallas Mavericks, and he’s been annoying NBA officials ever since. By mid-2006, Mark had already been fined in excess of $1.6 million by NBA officials for his courtside antics and quick temper.5 For claiming the league was as poorly run as a Dairy Queen, Mark paid penance by donning a paper hat and serving soft serve for a day at a franchise in Coppell, Texas.6
In 2000, he cofounded 2929 Entertainment—a media holding company—and he’s chairman of AXS, a high-definition cable station. In 2007, he joined the cast of Dancing with the Stars—a reality show pairing athletes and D-list celebrities with professional ballroom dancers for a weekly dance battle. This qualifies him as talent as much as other celebrities who’ve appeared on the show. (Though he’s a bit of a cheater. At one point, he made a living as a disco-dance instructor.)7 Now he stars on a VC reality show, Shark Tank, where startup wannabes pitch their ideas to him and other “celebrity” investors. Hilarious YouTube clips abound.