People don't buy what you do. They buy why you do it. So Simon Sinek coined a phrase "Golden Circle" which has three tiers, from core to exterior - why, how, and what. Unfortunately, average leaders think from what, how, to why.

For example, Apple Company will say...

1. Why: Everything we do, we believe in challenging the status quo. We believe in thinking differently.
2. How: The way we challenge the status quo is by making our products beautifully designed, simple to use, and user-friendly
3. What: We just happen to make great computers.
4. Want to buy one?

People don't care about what you do; they care about why you do it. Simon Sinek introduced a Golden Circle that starts from the inside out: Why? How? What? Unfortunately, mediocre leaders typically think from the outside in.

For example, Apple would say...

1. Why? Everything we do is to challenge the status quo, and the belief we pursue is extraordinary.
2. How? The way we challenge the status quo is by making our products simple and beautiful, and by perfecting the user experience.
3. What? We just happen to make some really great computers.
4. Want to buy one?

• Why people bullshit?
  • Eric Ambler — "Never tell a lie when you can bullshit your way through it."
  • Harry Frankfurt - "One of the most salient features of our culture is that there is so much bullshit." Bullshit is everywhere.
• How to detect bullshit?
  • Using bullshit detector - a mental device that represents a person's ability to detect deception, dishonesty, corruption, fraud, insincerity, hypocrisy and falsity in others.
  • ==A key indicator of bullshit is the asymmetry of risks - when someone who does not have a skin in the game advocates something that benefits him if it succeeds but hurts only you if it fails, then he is bullshitting you.==

• Why do people bullshit you?
  • Because compared to deliberate deception, the cost of being exposed after bullshit is lower while hiding true intentions.
  • Harry Frankfurt said, "Bullshit is one of the most significant features of American culture." Bullshit is everywhere. Why do Americans especially like to bullshit?
    • Americans like to present things beautifully on the surface, carefully controlling their private emotions, rarely confronting others directly, but they value integrity and do not lie outright, so bullshit is the best option.
• How can you sense if someone is bullshitting you?
  • Use the ==bullshit detector==, which is a hypothetical psychological anti-deception mechanism.
  • ==The key to countering bullshit lies in recognizing the asymmetry of risk; if the other party has no stakes but advocates for something, they profit when successful, but only you suffer losses when it fails, then they are bullshitting you.==

Why introducing leverage to management?​

Maximizing organization’s output.

A manager’s output = The output of his organization + The output of the neighboring organizations under his influence

This means that if a manager is not just a hierarchical supervisor but also a know-how manager (knowledge supplier), then he will have larger impact on both his own organization as well as neighboring organizations.

the definition of “manager” should be broadened: individual contributors who gather and disseminate know-how and information should also be seen as middle managers, because they exert great power within the organization.

What to be leveraged? Managerial activities​

1. ==Information gathering== - the basis of all other managerial work

   1. Verbal sources are the most valuable because usually the more timely the information, the more valuable it is., but what they provide is also sketchy, incomplete, and sometimes inaccurate, like a newspaper headline that can give you only the general idea of a story.
   2. Reports are more a medium of self-discipline than a way to communicate information. Writing the report is important; reading it often is not.
   3. to visit a particular place in the company and observe what’s going on there. For example, we ask our managers to participate in “Mr. Clean” inspections, in which they go to a part of the company that they normally wouldn’t visit. The managers examine the housekeeping, the arrangement of things, the labs, and the safety equipment, and in so doing spend an hour or so browsing around and getting acquainted with things firsthand.

2. ==Information-giving==

3. ==Decision-making==, includes 2 kinds

   1. forward-looking
   2. respond to a developing problem or a crisis

4. ==Nudging - advocating a preferred course of action, but you are not issuing a firm and detailed instruction. == it should be carefully distinguished from decision-making that results in firm, clear directives.

5. ==Being a role model==. nothing leads as well as example. Values and behavioral norms are simply not transmitted easily by talk or memo, but are conveyed very effectively by doing and doing visibly.

By and large, none of the above can happen without a meeting. However, meeting is not an activity, it is an occasion or medium where activity happens.

What are managerial leverages, exactly?​

Managerial Output = Output of organization = L1 × A1 + L2 × A2 +…

To maximize the output...

1. Speeding up
   1. Managerial output / time = L * (activity performed) / time
2. Increasing leverage
3. Shifting activities to those with higher leverage

Leverage can be increased....

1. When many people are affected
2. When a person’s behavior is impacted in the long run
3. When a large group’s work is affected by the unique information

For example,

1. Positive leverage

   1. planing in advance, and a large group of people know what to do.
   2. Timely reaction to a subordinate’s intention to quit
   3. Imparting knowledge, skills, or values to a group
   4. Activities that takes short time but affects another person’s performance over a long time. performance review.
   5. ==creating a tickler file==
   6. Providing unique skills and knowledge.

2. Negative leverage

   1. I am a key participant at a meeting and I arrive unprepared.
   2. ==Spreading depression==
   3. ==Waffling==
   4. ==Managerial meddling.== if a senior manager sees an indicator showing an undesirable trend and dictates to the person responsible a detailed set of actions to be taken, that is managerial meddling.

Shifting activities to those with higher leverage by DELEGATION

1. The “delegator” and “delegatee” must share a common information base and a common set of operational ideas or notions on how to go about solving problems

2. Being conscious

3. ==delegation without follow-through is abdication.== how to monitor? QA

   1. When? ==at the lowest-added-value stage of the process==
   2. frequency? According to the worker’s experience level and sampling results
   3. Coverage? Not 100% but random sampling

4. How to monitor the delegation of decision-making?

   1. Inspect the decision-making process by a review meeting and ask specific questions.

5. How Many Subordinates Should You Have?

   1. As a rule of thumb, a manager whose work is largely supervisory should have six to eight subordinates, because
      1. a manager should allocate about a half day per week to each of his subordinates.
      2. Even if he works without a single subordinate, servicing a number of varied “customers” as an internal consultant can in itself be a full-time job.
   2. Hence second-line manager should have IC reporting to them if he does not have enough subordinates

Speeding up

1. time-management

   1. For example

      1. to handle a piece of paper only once,

      2. to hold only stand-up meetings (which will presumably be short), and

      3. to turn his desk so that he presents his back to the door.

   2. Principles
      1. identify our limiting step. schedule my other work around this limiting step.
      2. batching similar tasks
      3. Using calendar as the medium of forecast / planning
         1. Actively fill the holes between the time-critical events with non-time-critical though necessary activities.
         2. ==say “no” at the outset to work beyond your capacity to handle. Remember too that your time is your one finite resource, and when you say “yes” to one thing you are inevitably saying “no” to another.==
      4. Slack - a bit of looseness in your scheduling.
      5. Keeping an inventory of projects
      6. Standardize procedures

2. reducing Interruptions (the plague of managerial work) — how to solve? regularity and smoothing out workload.

   1. Controlled way
      • Batching same block of time used for like activities / all schedule meetings at the same time
   2. Uncontrolled way
      • hiding physically is not practical because legitimate problems will pile up
      • Prepare FAQ/documentations
      • Batching
      • Providing alternatives:
        • “I am doing individual work. Please don’t interrupt me unless it really can’t wait until 2: 00.”
        • Office hours

Why Introduce Managerial Leverage?​

To achieve high output.

The output of a manager = the output of their team + the output of adjacent teams influenced by them.

This means that if a manager is not just a "supervisor" but also a ==knowledge consultant==, they can significantly increase their influence.

Thus, the concept of a manager is broadened; any individual contributor (IC) who gathers information, communicates it, and knows what to do is, in fact, also a manager.

Where to Apply Leverage? In Management Activities​

1. ==Gathering Information== is the premise of all management activities.

   1. Verbal information sources are the most valuable.
   2. Progress reports are more of a constraint; the writing process is important, while the reading process is not.
   3. Go to certain locations to gather intelligence.

2. Providing Information

3. Decision-Making, which includes two aspects:

   1. Looking to the future.
   2. Responding to urgent situations.

4. Nudging encourages subordinates to act in preferred directions, but be careful not to create unwavering, clear commands. Otherwise, it becomes micromanagement.

5. ==Leading by example is the most effective leadership method. Good leaders are all performing artists.==

Generally speaking, almost all of the above activities are achieved through meetings. However, it is important to note that holding meetings is not a management activity; it is merely a medium or location for the aforementioned activities to occur.

How to Increase Leverage Ratio?​

Managerial output = organizational output = Leverage 1 x Activity 1 + Leverage 2 x Activity 2 + …

To maximize output…

1. Accelerate.
2. Increase leverage ratios.
3. Do fewer low-leverage activities and more high-leverage activities.

To increase leverage ratios…

1. Influence more people.
2. Influence people's long-term behavior.
3. Provide unique information.

For example:

1. Positive Leverage

   1. Make advance plans for large organizations.
   2. Timely persuasion for departing subordinates.
   3. Introduce new knowledge, skills, and values to the organization.
   4. Engage in activities that take little time but can have a profound impact on a person, such as performance evaluations.
   5. Create memos.
   6. Provide unique skills and values.

2. Negative Leverage

   1. I am a key participant in the meeting but attended without preparation.
   2. Spread feelings of despair.
   3. Indecisiveness.
   4. Micromanagement, or what is called managerial meddling. If a manager gives a series of detailed instructions to a responsible person, that is interference.

Delegation (do fewer low-leverage activities and more high-leverage activities)

• The delegator and the delegate must have a consensus on how the tasks should generally be done.

• Consciously control which tasks to delegate and which not to.

• ==Delegating without monitoring is relinquishing responsibility==. How to monitor? QA (Quality Assurance)

  • When to do it? At the stage where minimal added value is achieved.
  • What frequency? Based on the delegate's experience level and sampling inspection results.
  • How much to monitor? Not 100%, but random sampling.

• How to monitor the decisions made by delegated subordinates?

  • Monitor the decision-making process, such as holding review meetings, then asking questions to see if convincing answers can be obtained.

• How many direct subordinates should a manager have?

  1. Generally speaking, 6-8, because
     1. A manager should spend half a day each week on one subordinate.
     2. Even if a manager has no subordinates, providing consulting services to other internal employees can also be a full-time job.
  2. Therefore, if there are not enough first-line managers among the direct subordinates of second-line managers, IC subordinates should be increased.

Accelerate

1. Improve time management skills.

   1. For example:

      1. A document should only be handled once.
      2. Hold stand-up meetings.
      3. Arrange workstations to face away from the entrance.

   2. Guiding Principles:

      1. Clarify fixed times; identify which tasks must be done at specific times, and all other flexible arrangements should revolve around these.
      2. Batch process similar issues.
      3. Use calendars as a medium for forecasting and planning.
         1. Actively fill in the gaps between fixed times.
         2. ==Say no to tasks that exceed your capacity. Be aware that saying yes to one task means saying no to another.==
      4. Allow slack - do not over-schedule.
      5. Maintain a "project inventory"; otherwise, when a manager has extra time, they may interfere (meddling) in subordinates' work. This time should be allocated for future planning.

2. Reduce interruptions. Interruptions are a chronic issue in management work. What to do? Standardize processes to smooth out workloads.

   1. Controllable methods:
      1. Batch processing activities, such as having everyone meet at the same time or not meet at the same time.
   2. Uncontrollable methods:
      1. Hiding is not a good method, as it will accumulate real problems.
      2. Prepare FAQs and documentation.
      3. Batch processing.
      4. Provide alternatives to interrupters.
         1. "I am currently working; please do not disturb me until 2:00."
         2. Set dedicated office hours to answer questions.

1. All the discussions about flexi-time or dress-down Fridays or paternity leave only serve to mask the core issue, which is that ==certain job and career choices are fundamentally incompatible with being meaningfully engaged on a day-to-day basis with a young family.==

2. governments and corporations aren't going to solve this issue for us. If you don't design your life, someone else will design it for you.

3. we have to be careful with the time frame that we choose upon which to judge our balance. A day is too short; "after I retire" is too long.

4. We need to approach balance in a balanced way. Lovely though ==physical exercise== may be, there are other parts to life — there's the ==intellectual side==; there's the ==emotional side==; there's the ==spiritual side==. And to be balanced, I believe we have to attend to all of those areas.

1. All discussions about flexible work arrangements, casual Fridays, and maternity leave avoid a fundamental issue: ==work often fundamentally conflicts with family life==.

2. No one will care about your well-being. If you don't set limits in your life and design your own path, companies and governments will drain you.

3. When is balance best? The answer shouldn't be "after retirement," nor should it be that you must balance every day. It should be about balancing occasionally within your means.

4. Life is diverse; it means not just ==physical health==, but also ==emotional health==, ==intellectual health==, and ==spiritual health==. Seizing the right moment can yield significant returns from small investments.

Knowledge workers have limited cognitive power and willpower. They are lucky if in the zone; however, what if they are not? Therefore, I am introducing an energy-level playbook.

There are four levels of energy.

1. Zombie - could hardly do any work.
2. Robot - could do some cognitive job but cannot do any complicated task.
3. Human - could do relative complex work but cannot be in the zone all the time.
4. Rock Star - feeling like a god that can do anything.

What can we do in those states?

1. In the zombie state? Do not work or do little chore work.

   1. Take a rest.
      1. Being unfocused and get back to default mode network
         1. Take a walk/run outdoors.
         2. Return to nature.
         3. positive constructive daydreaming (PCD)
      2. Pretend to be someone else to encourage oneself.
      3. Chat with friends.
      4. Drink a cup of coffee and take a nap immediately for 25 mins.
   2. Alternatively, entertain oneself, if it is OK to waste the rest of the day. Entertainment will consume more cognitive power and make people feel more tired.
   3. in software development, do linting, writing predefined tests, introducing/writing automation tools, in which you do not have to use your brain.

2. In the robot state? Do preset work.

   1. check TODO lists and grab simple tasks
   2. implement a software design in an area that you are highly familiar with
   3. write documentation or clean up notes
   4. extensive reading

3. In the human state? Do exploratory work.

   1. create a new design
   2. communicate, persuade, or give a talk in public (Do not do these in a robot or a zombie state).
   3. implement a new and significant component of the system.
   4. planning
   5. intensive reading

4. In the rockstar state? Do creative work.

   1. hard tasks that require long-time focus and complex cognition
   2. synthesize: intensive researching by reading many materials and writing notes that are connecting the dots

Knowledge workers have limited energy, and their work state can vary from good to bad. What should you do when your state is not optimal? Today, we will discuss the Energy Level Playbook.

Energy states have levels, divided into four tiers.

1. Zombie - Essentially unable to do anything.
2. Robot - Can perform tasks that require cognitive ability but cannot handle complex tasks.
3. Mortal - Capable of handling relatively complex tasks but cannot maintain high concentration for long periods.
4. Transcendent - Feels capable of doing anything.

So, what can you do in these states?

1. In Zombie state? Don't work or do mindless tasks. (Menial work)

   1. Take a timely outdoor walk or run. Moving your body can increase blood flow to the brain while providing a suitable "distraction." Even standing up and walking a few steps every hour is a good break.
   2. Return to nature; being surrounded by flowers, trees, mountains, and rivers can be restorative. Even looking at pictures of nature can have a noticeable effect on the brain. Changing your desktop wallpaper to natural scenery can also help.
   3. Gather with friends, chat, and have a drink. It must be friends, for the sake of friendship, not for "networking."
   4. Start with a cup of coffee, aiming for a caffeine content of about 200 milligrams; set a timer on your phone for 25 minutes; begin to rest; and get up immediately when the 25 minutes are up.

2. In Robot state? Do preset tasks. (Basic work)

   1. Check your TODO list for some simple tasks.
   2. Implement existing or very familiar software designs.
   3. Write documentation or clean up notes.
   4. Skim read.

3. In Mortal state? Engage in exploratory work. (Exploratory work)

   1. Design new things.
   2. Communicate, persuade, and present (avoid these in the first two states).
   3. Plan.
   4. Read deeply.

4. In Transcendent state? Innovate. (High-level work)

   1. Tackle difficult tasks that require long periods of focus.
   2. Conduct comprehensive research.