Salim Ismail
Founder & Chairman, OpenExO. On 1 show, 1 appearance. The Shows tab opens the full record on each.
founderauthorexecutiveinvestor@salimismail ↗LinkedIn ↗salimismail.com ↗Wikipedia ↗
He is best known as the lead author of the bestselling books Exponential Organizations and Exponential Transformation, and as the founding executive director of Singularity University. Earlier in his career, he led Yahoo's internal incubator Brickhouse, sold his startup Ångströ to Google in 2010, and joined the board of the XPRIZE Foundation.
1shows
1appearances
27statements
9resolved
4supported
2contradicted
44%fully supported
Everything Salim Ismail said on any show that made the record, most notable first. Each card names its show and opens the statement there.
Ismail: Coase's Law is obsolete due to cheap web service transaction costs
“So in the book, we actually declare Coase's Law, which has been, ah, very touted for a hundred years, essentially gone. Because the pay, the need to control a big company makes it too slow to navigate all these massive changes that are happening. And B, the tr…”
Ismail: Generative AI will replace most lawyers
“The best benefit is we'll replace most of the lawyers. Because you could just say, generate me a contract that has these characteristics and it'll throw in the clauses and et cetera.”
Ismail: Amazon penalizes employee bonuses if their experiments do not fail enough
“We saw, for example, an Amazon that every team is measured on how many experiments they ran this quarter, how many succeeded, how many failed. If you're not running enough experiments and not enough for failing, you're actually, your bonus gets dinged, right?”
Ismail: GE sold its appliance business to Haier after failing to compete
“GE actually gave up and sold GE appliances to them because they couldn't compete.”
Ismail: Top exponential Fortune 100 companies outperformed bottom 10 by 40x
“Over a seven-year period, the top 10 did better than the bottom 10 by three x on revenue growth 6.4 times on profitability, 10.9 times on return on assets, but shareholder returns, compound annual growth rate, top 10 outperformed the bottom 10 by 40 x.”
Ismail: Companies without generative AI will not survive
“If you're not building generative AI into your products and services going forward, you're not going to last.”
Ismail: Apple's real competitive edge is its organizational design, not products
“I will argue that Apple's real real edge is organizational, because what they will do is they will form a small team that's really disruptive. They will put that team at the edge of the company. They'll keep them secret and stealth, and they'll say to them, go…”
Ismail: Google missed early LLM deployment due to risk aversion
“Google was basically the foundation of LLMs, right? They were too nervous and careful and risk averse to launching.”
Ismail: ATMs lowered branch costs 10x without reducing bank teller jobs
“When we looked in the past, when we've had disruptive technological innovation,
To come in and completely clean up.
We found that we don't lose jobs.
What we do is we increase capacity.
I'll give you a very clear example, which is in the seventies, we created …”
Ismail: Countries with highest robotics adoption maintain the lowest unemployment rates
“The most roboticized companies in the countries in the world that have the highest penetration of robotics are South Korea, Sweden, Germany, which have the lowest unemployment.”
Ismail: Smartphone maker Xiaomi incurs zero marketing or promotional costs
“Then you have Xiaomi in China, the second biggest phone company, and they're successful because they have a thousand super users that vote on what features should go into the new phone, and they get the phone early and can boast to people, look, I voted, and a…”
Ismail: Unilever's five most profitable brands were those adopting transformative purposes
“When we wrote the first book about around 20 15, Paul Pullman, who was CEO of Unilever, asked me to come and talk to his top 200 executives. And after that session, he ordered every brand in Unilever to take on an MTP. And every brand had to be purpose-driven …”
Ismail: NFT Projects Build Multi-Billion Dollar Ecosystems as Exponential Organizations
“And now with crypto economics and token economics all of these NFT projects are basically EXOs. They have a big purpose. They create crypto economics and they reach multi-billion dollar ecosystems incredibly fast. Just by incentivizing them in the right ways.”
Ismail: Haier split 80,000 employees into 2,000 autonomous micro-enterprises
“They make fifty-five million fridges and ovens a year. There were 80,000 people in a classic pyramid structure, command and control, top-down, etc. CEO one day wakes up and goes, can't meet my corporate goals using this structure. Blows it up. Turns 80,000 peo…”
Ismail: Tangerine Bank operates without traditional reporting lines or job descriptions
“There's a Canadian bank called Tangerine Bank, which used to be ING Direct. Which actually operates like this. So in a regulated bank, there's no CEO reporting lines, job descriptions, et cetera.”
Ismail: Exponential organizations perform 10x better, faster, and cheaper than peers
“So the definition we have for an EXO or exponential organization, as we call it, is that it's delivering 10 X better, faster, cheaper than its non-EXO peers.”
Ismail: Reducing marginal cost of supply to zero drives market cap growth
“What we find with exponential organizations, they found a way of dropping the cost of supply exponentially, right? So you think about Airbnb, the cost of adding a room to their inventory is near zero. If you're hired, you have to build a hotel. Same with Uber …”
Ismail: Large companies trigger internal immune responses against self-disruption
“When a big company tries to do anything disruptive, they get an immune system response from the rest of the company and they get attacked.”
Ismail: Tech winners like Apple and Google succeeded by becoming platforms
“Yahoo, BlackBerry, Nokia all failed to become platforms, right? Google, Apple, Facebook, Amazon all successfully became platforms, and that business model basically carries you through because now you wire yourself into the infrastructure.”
Ismail: Study of 200 unicorns found 100% had a Massive Transformative Purpose
“The way we came up with this was in 2012 to 2014, we analyzed the 200 fastest growing unicorns in the world and said, how are they doing this? How's Uber scaling so fast or Airbnb or Ted or others? And we found that all of these organizations had what we call …”
Ismail: The launch of AWS marked the birth of exponential organizations
“Cloud computing was probably the most relevant here in the kind of we considered the birth of an EXO when Amazon Web Services launched, because now you can take computing off the balance sheet and make it a truly variable cost.”
Ismail: Only 3.5% of large global companies use OKRs
“So we worked out that only three and a half percent of big companies around the world use OKRs.”
Ismail: Five-year strategic corporate plans are obsolete by completion
“Because for big companies, by the time they finish their five-year plan, it's out of date.”
One line per show, most statements first. The link opens Salim's full record on that show: the calibration, argument clarity, speaking style and every statement made there.
| Show | Role there | Eps | Statements | Record | |
|---|---|---|---|---|---|
 a16zLEDGER | Founder & Chairman, OpenExO | 1 | 27 | 44% 4/9 | full record on the a16z Podcast → |