For all the drama at Twitter, they're not the only ones experiencing layoffs in the tech industry. Though, Elon is now (supposedly) trying to renege on his severance packages.
Meta and Amazon saw even steeper layoffs than Twitter. Is this a result of overhiring during the tech boom, or a sign of dire times? Time will tell.
Stated reasons are economic uncertainty and poor performance, we're also seeing unsuccessful departments downsize – like Alexa.
To help allay economic fears, payroll and wage data from the U.S. government are exceeding expectations, and the country’s unemployment rate is close to a half-century low. As well, tech jobs account for 3% of the workforce – and many of those laid off will be picked up by smaller companies.
Even if the layoffs represent a short term reaction to what tech companies are seeing, hearing, or otherwise experiencing … they won't necessarily translate to long term bad news for our economy.
Last week, I shared an article about creating your annual plan (and how Capitalogix does it). This week, I want to talk more high-level about how we create a bigger future for ourselves, and next week I’ll talk about how I translate that bigger future into resolutions and actions.
The beginning of a new year is an excellent time for a fresh start. While it’s always the right time to take the right action, the structure of a year-end is a helpful crutch and force function.
We look forward to what we will achieve – even though history says we rarely achieve everything we hope for. Meanwhile, paradoxically, it is also true that we rarely achieve things we don’t hope for. So, Hope! It may not be a reliable strategy … but it beats the alternative.
I’m excited about 2023. Despite the abnormal market, the crazy headlines, and the still volatile political climate, we’re moving toward increased stability.
Even though I expect some volatility, we have become more accustomed to handling it (and we’ve become better at transforming its strategic byproducts into strategic benefits).
On a different topic, think about how much progress we’ve made and how different the “new normal” has become. For example, think about Zoom and remote work or how quickly our economy migrated online. On many levels, what we are doing now seemed like science fiction, even just a few years ago.
We are living in an age of exponential technologies and exponential possibilities.
I commissioned this image from GapingVoid, to remind our team to keep shooting higher.
Resilience, resourcefulness, and a worthy goal are the foundational keys to many entrepreneurial success stories.
In the spirit of New Year’s Resolutions – I’ll add that a deliberate approach to goals is important too.
I’m a big fan of picking a Big Hairy Audacious Goal (sometimes called a “BHAG”) and taking actions that move you in that direction.
I’m also a big fan of Strategic Coach’sBigger Future exercise. It is a 25-year planning exercise where you lay out your commitments and goals to yourself, your family, your career, and your legacy. One of the keys to this is chunking high enough to name the roles, goals, and strategies you select with timeless language (meaning that the target words hold up even as you pivot and adjust your focus and actions).
While doing this, I realized that my ideal next chunk of years involves taking Capitalogix to the next level (and beyond) through collaboration, cooperation, and joint ventures.
Once you know your long-term goal, it is relatively easy to plan the steps you need to achieve it. Achieving smaller goals reinforces successes, builds momentum, and makes continued progress feel more likely.
Extra points if you make them SMARTs (Specific, Measurable, Attainable, Realistic, and Time-Bound).
Actions speak louder than words, and your words can distract you.
If your goal is to win first place at a competition, focus on the metrics of a first-place finish instead of the medal. This makes the goal concrete and sets an internal locus of control for your victory. This also means you don’t need to tell others about your goal too soon. Studies show that when you announce your intention to achieve a goal in public, you decrease the likelihood of succeeding.
It’s okay to misstep, and it’s okay to get stuck – but recognize where you are and what you’ve done … and move forward.
Delayed gratification happens when you want something badly, but are not able to get it right away. The result is often anger or frustration.
Meanwhile, the mainstream media broadcasts a seemingly non-stop stream of messages screaming for immediate attention and gratification. The result of that is not good either (for example, it can result in higher rates of obesity, drug abuse, and depression).
Don’t be fooled. Overnight successes are rarely actually overnight successes (for long).
It’s also important (once you’ve accomplished your goal) to set new goals.
Over the next 25 years, there are many people I want to impact – and many goals I want to accomplish.
It hasn’t always been easy – but building Capitalogix has been an intensely rewarding passion. It has been easier because I want what I want. Make sure you know what you really want … it makes getting it much easier.
I look forward to you all being a part of it as well. Here’s to a successful 2023 and an even more successful 2048.
It is that time of year, again. We are in the midst of our annual planning for 2023.
The process is relatively straightforward. We start by deciding what the company's three highest priority goals are. With those goals as the base, each department (and manager) creates a big three that represents what they can do to reach the company's big three. From there we dive into quarterly rocks, SMARTs (goals that are specific, measurable, actionable, relevant, and timed), as well as the explicit tactical steps it will take to accomplish what we set out to achieve.
The meetings are going well. There is a lot of back-and-forth idea sharing, negotiating, and priority setting.
Nonetheless, I had a sneaking suspicion that sometimes what seemed like a dialogue, was really multiple monologues.
The reason for the disconnect (or misconnect) was that the participants had fundamental beliefs, at a higher level than we were discussing, that were at odds with each other.
I shot two videos that I think help teams get to alignment.
Thinking About Your Thinking
The first discusses several techniques to enhance your decision-making.
One of the ideas is something called "Think, Feel, Know." Basically, it explains that you have to deal with superficial thoughts before getting to deeper feelings. Then, you have to deal with those feelings before you get to "knowing".
Another technique discussed in the video involves adding time to look for "insights" after working on something. Those insights are often the seeds for something greater.
Chunking Higher
The second is on how to chunk high enough that you can start from a place of agreement. Exploring distinctions from there is relatively easy.
I'll add one more concept for good measure … Start with the end in mind. Alignment happens in stages. Before you can truly get alignment on what to do next, you have to get agreement and alignment about where you are and where you want to go.
With that said, another important component of meaningful communication is a shared understanding of a common language. Words can mean different things to different people. Simply agreeing on a "word" is different than agreeing on a common meaning.
It purports that the US dollar will suck up liquidity from the other currencies, creating a chain of events that will drive the US dollar even higher. Unfortunately, this increases the risk of debt defaults. Eventually, the dollar ends up drinking the liquidity from the entire world economy.
Think about it. If you're getting negative yields on your two-year bonds from other countries, after a certain point you would sell those investments and switch to US two-year treasury bonds. It's a slippery slope from there.
With markets making new lows and volatility shaking out investors in both directions, I thought this would be an excellent time to talk about coping with losses and managing your anxieties during "scary times." I last shared this at the apex of COVID fear … and it's just as relevant today.
The Anxiety Antidote
"When the trough gets smaller … the pigs get meaner." - Dan Sullivan
Many people are suffering from "I should have …", or "if I would have …", or "if I could have …" thoughts.
The problem is that thoughts like those create more stress and distraction. They are a lens focused on loss, difficulties, past events, things that are missing, and what you don't want.
Think of them as an unhealthy reflex that wastes energy, confidence, and time.
All We Have To Fear Is Fear Itself
I often talk about market psychology and human nature. The reason is that markets reflect the collective fear and greed of its participants… people tend to get paralyzed during scary times like these.
But it's not the economy that makes people feel paralyzed. People feel paralyzed because of their reactions and their beliefs about the economy. Your perceptions become your reality.
A little examination reveals that most fear is based on a "general" trigger rather than a "specific" trigger. In other words, people are afraid of all the things that could happen and are paralyzed by the sheer scope of possibilities. These things don't even have to be probabilities in order to scare them.
You gain a competitive advantage as soon as you recognize that it's not logical. Why? Because as soon as you distinguish that fear as not necessarily "true", you can refocus your insights and energy on moving forward. You can act instead of react. You make better decisions when you come from a place of calm instead of fear… so create that calm.
Even a challenging environment, like this, presents you with opportunities if you watch for them … or even better, if you create them.
The Scary Times Success Manual
The goal is to move forward and feel better. Strategic Coach offers ten strategies for transforming negativity and unpredictability into opportunities for growth, progress, and achievement. They call it the "Scary Times Success Manual," and what follows are some excerpts:
Forget about your difficulties; focus on your progress.
Because of some changes, things may not be as easy as they once were. New difficulties can either defeat you or reveal new strengths. Your body's muscles always get stronger from working against resistance. The same is true for the "muscles" in your mind, your spirit, and your character. Treat this whole period of challenge as a time when you can make your greatest progress as a human being.
Forget about events; focus on your responses.
When things are going well, many people think they are in control of events. That's why they feel so defeated and depressed when things turn bad. They think they've lost some fundamental ability. The most consistently successful people in the world know they can't control events – but continually work toward greater control over their creative responses to events. Any period when things are uncertain is an excellent time to focus all of your attention and energy on being creatively responsive to all of the unpredictable events that lie ahead.
Forget about what's missing; focus on what's available.
When things change for the worse, many desirable resources are inevitably missing – including information, knowledge, tools, systems, personnel, and capabilities. These deficiencies can paralyze many people, who believe they can't make decisions and take action. A strategic response is to take advantage of every resource that is immediately available in order to achieve as many small results and make as much daily progress as possible. Work with every resource and opportunity at hand, and your confidence will continually grow.
Forget about your complaints, focus on your gratitude.
When times get tough, everyone has to make a fundamental decision: to complain or to be grateful. In an environment where negative sentiment is rampant, the consequences of this decision are much greater. Complaining only attracts negative thoughts and people. Gratitude, on the other hand, creates the opportunity for the best thinking, actions, and results to emerge. Focus on everything that you are grateful for, communicate this, and open yourself each day to the best possible consequences.
The VIX (Cboe's Volatility Index) is regarded as the "Fear Index". While we saw spikes in early October, numbers are significantly lower than the spikes in 2020.
But, numbers have remained higher than pre-pandemic. To me, this shows how uncertain and anxious the average "trader" is with various global trends. We can discuss all the long or short-term causes of the rises and falls of markets, but I don't think it does much good. I let the algorithms worry about those.
I sound like a broken record, but volatility is the new normal.
Markets exist to trade, and if there's no "excitement" on either side, trades don't happen
Trades are getting faster, which means more information has to confuse both the buyer and the seller
You're no longer competing solely against companies and traders like you. It's like the cantina from Star Wars, you've got a bunch of different creatures (and bots) interacting and fighting with each other, trying to figure out how to make their way through the universe
Pair that with all the fear and uncertainty, and you've got a recipe for increased volatility and noise. That means that the dynamic range of a move will be wider and happen in shorter periods of time than ever before. You'll hear me echo this thought over the next few years as the ranges continue to expand and compress. Cycles that used to play out over weeks now take days or hours. The game is still the same, it just takes a slightly different set of skills to recognize where the risks and opportunities are.
There's a difference between investing and trading. On some level, I believe some humans can still invest well (assuming that they do the research, find an edge, and minimize the fear, greed, and discretionary mistakes that negatively impact results. However, for most people, believing that they can trade (personally) is dangerous. There are simply too many things to pay attention to – and the ratio of signal to noise is difficult to overcome as well.
The crucial distinction is between adding data and adding information. Adding more data does not equal adding more information. In fact, blindly adding data increases your chances of misinformation and spurious correlations.
Today's paradigm – both in life and in trading – is about noise reduction. It's about figuring out what moves the needle and focusing only on that.
Said a different way, if you don't know what your edge is, you don't have one.
Meanwhile, if you do know what your edge is (regardless of how scary the times are), keep calm and carry on.
While many people consider Buffett to be an investor, I also consider him to be an entrepreneur.
At the age of six, he started selling gum door to door. Obviously, selling gum wasn’t the key to his path to riches. So, how did he make his first million? Here’s a video that explains it.
There's a lot fascinating about his holdings. It is fascinating to recognize how much the world has changed – and yet how much it stayed the same. It's also interesting to see the amount of individual stocks he owns, like Apple for example (122 Billion). Despite the relative density of stocks, if you think about the capital at play, it's pretty centralized.
Diversification is important, but for a human, too much becomes a distraction … so Buffet famously buys what he knows.
Another Buffet hallmark, most of his stocks pay a dividend.
I was also surprised to see that he has a bit of money in ETFs like SPY despite investing in many of the individual stocks from the S&P 500.
While this is an interesting graph to look at, it's important to know that this is one way to invest and might be a great way to get from a lot of money to more money – but this might not be the portfolio that works for the average investor (or you).
There is blood in the streets … asking “What would Warren do?” might be a great place to start.
The world will reach 8 billion people at some point this year. That is a new (and potentially scary) milestone.
Part of the concern stems from how fast population is growing. Consider that the world’s population has doubled during the last 50 years … and the geographic distribution of the population has changed as well. Here is an infographic that highlights some interesting trends.
If you want to look at where the economy is going over time, you don't have to guess to wildly. Population growth is a primary clue. Consequently, focus on where the most children are being born – or where relatively more children are being born recently. For example, economists don’t have to work too hard to figure out how many 18-year-olds will exist somewhere in the next 15 years – they start by counting the 3-year-olds.
While China, India, and the U.S. top the world's population lists (with the U.S. dramatically behind China and India), many countries are creeping up the list. In fact, Lagos, Nigeria's largest city, is expected to the world's biggest megacity by the end of the century. Many of the world's highest growth rates are found in Africa.
As another "surprise," India is set to pass China as the world's most populous country. Meanwhile, much of Europe's populations are contracting.
The U.S. is still growing – but is not matching the rates of emerging countries in Asia and Africa.
The world is expected to reach a population of around 10 Billion before 2100. With that said, many expect the number to decrease from there.
Interesting?
How do you think this will affect the next 20 years?
Rube Goldberg machines impress me more often than not. Here's a 70-step outdoor machine that covers a lot of ground … all to put a basketball in a hoop. It took a month to create, and another month to get working.
I love stuff like this because it reminds me of life. Looking backward, you see how all the pieces go together. As you're going through it, it feels random and sometimes like you're moving backward or that your effort isn't directly contributing to your goal.
A few years ago, I shared a presentation called Mindset Matters that I had given to a small mastermind group.
Recently, I have revisited that content in more detail and with finer distinction.
One of my core beliefs is that energy is one of the most important things we can measure. I believe it so strongly I paid Gaping Void to put it on my wall.
It means exactly what it sounds like – but also a lot more.
Energy affects how you feel, what you do, and what you make it mean. That means it is a great way to measure your values too. Consequently, even if you don't recognize it, energy has a lot to do with who you hire and fire. It affects where you spend our time. Ultimately, it even affects the long-term vision of our company. If something brings profit and energy, it is probably worth pursuing.
In contrast, one of the quickest ways to burn out is by fighting your energy. Figuring out who and what to say "no" to is an important way to make sure you stay on path and reach your goals.
Three Word Strategies.
I believe that words have power. Specifically, the words you use to describe your identity and your priorities change your reality.
First some background. Your Roles and Goals are nouns. That means “a person, place, or thing.” Lets examine some sample roles (like: father, entrepreneur, visionary, etc.) and goals (like: amplified intelligence, autonomous platform, and sustainable edge). As expected, they are all nouns.
Next, we’ll examine your default strategies. The strategies you use are verbs. That means they define an action you take. Action words include: connect, communicate, contribute, collaborate, protect, serve, evaluate, curate, share … and love. On the other end of the spectrum, you could complain, retreat, blame, or block.
People have habitual strategies. I often say happy people find ways to be happy – while frustrated people find ways to be frustrated. This is true for many things.
Seen a different way people expect and trust that you will act according to how they perceive you act.
Meanwhile, you are the most important perceiver.
Another distinction worth making to that the nouns and verbs we use range from timely to timeless. Timely words relate to what you are doing now. Timeless words are chunked higher and relate to what you have done, what you are doing, and what you will do.
The trick is to chunk high enough that you are focused on words that link your timeless Roles, Goals, and Strategies. When done right, you know that this is part of what makes you … “You”.
My favorite way to do this is through three-word strategies.
These work for your business, your priorities, your identity, and more.
I'll introduce the idea to you by sharing my own to start.
Understand. Challenge. Transform.
The actual words are less important than what they mean to me.
What's also important is that not only do these words mean something to me, but I've put them in a specific order, and I've made these words "commands" in my life. They're specific, measurable, and actionable. They remind me what to do. They give me direction. And, they are a strategy (or process) that creates a reliable result.
First, I understand, because I want to make sure I know all sides before I take action. For me, it is about seeing the bigger picture. It creates a golden thread from where I am to the bigger future possibility that I want.. Then, I challenge situations, people, norms, and more. I don’t challenge to tear down. I challenge to find strength … to figure out what to trust and rely upon. Finally, I transform things to make them better. Insanity is doing what you always do and expecting a different result. This is about finding where small changes create massive transformations. It is about committing to the result rather than how we have done things till now.
If I challenged before I knew the situation, or I tried to transform something without properly doing my research, I'd be shooting from the hip, and I'd cause more damage than good.
Likewise, imagine the life of someone who protects, serves, and loves. Compare that to the life of someone who loves, serves, and protects. The order matters!
I've set daily alarms on my phone with these words, I use them when I'm in meetings, and they're used to evaluate whether I'm showing up as my best self.
You can also create three words that are different for the different hats you wear, the products in your business, or how your team collaborates.
Finding Your Three Words
Just like recipes, your words should have ingredients, orders, and intensities. As you use your words more, the intensities might change. For example, when my son was just getting out of college, one of his words was contented because he was focused on all the things he missed from college – instead of being appreciative of the things he did have. Later, his words switched to grateful and then loving. Evolutions that paired with his personal journeys.
As well, your words should be actions. They should be things that you do, not just words that describe you. You want to be an active participant in your life – not a passive bystander. You can also see that in my son's words. As he grew, the word became an action that he wanted to approach life with, instead of just a feeling.
Once you learn how to create and use these simple three-word strategies, you can use them everywhere.
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