The Ledger, every show

“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…”

“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.”

“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?”

“GE actually gave up and sold GE appliances to them because they couldn't compete.”

“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.”

“If you're not building generative AI into your products and services going forward, you're not going to last.”

“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…”

“Google was basically the foundation of LLMs, right? They were too nervous and careful and risk averse to launching.”

“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 …”

“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.”

“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…”

“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 …”

“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.”

“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…”

“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.”

“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.”

“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 …”

“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.”

“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.”

“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 …”

“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.”

“So we worked out that only three and a half percent of big companies around the world use OKRs.”

“Because for big companies, by the time they finish their five-year plan, it's out of date.”

“Like valve software in Seattle that has no CEO or reporting lines, job descriptions, management meetings of any kind.”

“And we think the future of books is going to be like this. A book that was, took a few years to write, et cetera, will be out of date if it's not being constantly updated and refreshed.”

“And what was really incredible was, ah, when the pandemic hit, these, the top 10 did five times better than the bottom 10 in responding to the pandemic, right?”

“So over the last three months, we've been building an AI chatbot to interface with the book.”