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    Mini Show #56: Dark Money, Herschel Walker, Lincoln Project, Adam Neumann, & More!

    enSeptember 25, 2022

    Podcast Summary

    • Bill to Increase Transparency in Elections and PoliticsThe DISCLOSE Act, sponsored by 50 Democrats in the Senate, aims to increase transparency in elections and political spending by requiring 501c4 organizations to disclose major donors. This legislation promotes accountability and trustworthiness in the political system.

      There is a significant amount of anonymous money, known as dark money, influencing elections and politics in the United States, and a bill called the DISCLOSE Act aims to address this issue by requiring 501c4 organizations to disclose their major donors. This legislation, which is being sponsored by 50 Democrats in the Senate, would help increase transparency and accountability in elections and political spending. The argument for this bill is that the public has a right to know who is funding these organizations and influencing political outcomes. While there have been arguments against the bill, primarily centered around the idea of donor privacy, the need for transparency and accountability in elections and politics outweighs these concerns. By becoming informed and supporting this legislation, we can help build a more trustworthy and democratic system for future generations.

    • Democrats address corruption and dark money in electionsDespite Democratic support for the Disclose Act, their past actions and powerful interests within the party question their commitment to passing legislation against dark money in elections.

      The political issue of corruption and the role of unregulated money in influencing elections has become a salient issue for the Democratic Party. With the support of President Joe Biden and 50 Democratic senators sponsoring the Disclose Act, it shows that the party recognizes the need to address this issue. However, the question remains as to how serious the party is about passing the bill, given their past actions and the powerful interests within the party that rely on dark money. The last few months have seen massive amounts of dark money spent to influence Democratic primaries, with insurgent progressive candidates being crushed as a result. Despite the Democrats benefiting more from dark money in the 2020 election than the Republicans, they recently blocked a vote on a resolution to ban dark money from their own primaries. This highlights the complexity of the issue and the challenges in passing legislation to regulate dark money in elections.

    • Transparency in Politics: A Growing ConcernThe call for transparency in campaign financing and elections is increasing, with the Disclose Act and Georgia Senate race highlighting the issue. Transparency enables investigative journalism, public accountability, and acts as a deterrent to dark money behavior.

      Transparency in politics, specifically in regards to campaign financing and elections, is becoming a critical issue among voters. The president's recent call for the passage of the Disclose Act and the ongoing debate over transparency in the Georgia Senate race are indicators of this growing concern. Transparency not only enables investigative journalism and public accountability, but it can also act as a deterrent to some of the worst dark money behavior. Despite debates having little impact on elections, they can still provide valuable opportunities for voters to assess candidates' abilities and qualifications. Ultimately, it is up to voters to demand transparency and action from politicians to address the issue of corruption in politics.

    • Debates and Candidate Quality: Overstated Impact on ElectionsDespite popular belief, debates and candidate quality may not significantly influence election outcomes

      While presidential debates and candidate quality are often seen as crucial factors in elections, there is little concrete evidence to support this belief. The debates' impact may be overstated due to the media hype surrounding them. For instance, the 2016 Republican primary debates might have mattered, but there's no definitive proof. The candidate quality gap between Herschel Walker and Raphael Warnock, as perceived by many, might not significantly influence the election outcome. Walker's strategy of setting a low bar for himself could potentially result in a perceived win, even if he doesn't excel in debates. Ultimately, debates and candidate quality may be interesting and enjoyable, but their impact on election results is debatable.

    • The Lincoln Project: A Grift Operation or Effective Political Force?The Lincoln Project, a group of former Republican operatives, raised over $100 million during the 2020 election, but there's no evidence their efforts impacted the outcome. Accusations of sexual misconduct and self-serving consulting fees fueled controversy, yet they continue to attract attention and resources.

      The Lincoln Project, a group of former Republican operatives, gained significant attention and raised over $100 million during the 2020 election with the promise of defeating Donald Trump. However, there is no evidence that their efforts had any impact on the election outcome. Instead, they were accused of being a grift operation, as they paid themselves hefty consulting fees and media projects while covering up allegations of sexual misconduct within their ranks. Now, Showtime is producing a docuseries about the Lincoln Project, fueling controversy over the group's legitimacy and the media's role in amplifying their narrative. Despite their lack of tangible results, the Lincoln Project continues to attract attention and resources, showcasing the power of storytelling and the influence of Hollywood elites.

    • The Intersection of Politics and EntertainmentCriticizing certain individuals for leveraging networks and relationships in politics and entertainment, questioning the value and authenticity of their endeavors, and emphasizing the importance of scrutinizing actions and intentions of the powerful.

      The entertainment industry and the world of politics can be interconnected in complex ways, with some individuals leveraging their networks and relationships to gain influence and funding, regardless of the actual substance or impact of their projects. The discussion touched upon the Showtime series "The Circus" and the Clinton Global Initiative, with the speaker expressing criticism towards certain individuals involved and questioning the value and authenticity of these endeavors. The speaker also highlighted the phenomenon of certain elites and celebrities being perceived as saviors or leaders, even when their actions and motivations may be questionable. The Clinton Global Initiative, in particular, was criticized as a throwback to a time when the public may have been more willing to trust wealthy and famous figures to solve global issues. Overall, the conversation underscored the importance of scrutinizing the actions and intentions of those in positions of power and influence.

    • The Clinton Foundation: A Place for the Rich and Powerful to Donate for AccessThe Clinton Foundation, once seen as a place for the wealthy to gain access to political figures, is now widely viewed as a grift and its reputation has been irreparably damaged.

      The Clinton Foundation, during its peak, was seen as a place where the rich and powerful could donate for access to political figures, with the Clintons' star power and potential political influence being the main attractions. This was more socially accepted at the time, but now it is widely viewed as a grift. A humorous example of this was a tweet from Southwest Airlines about giving ukuleles to passengers on a flight, which sparked widespread criticism and amusement due to the potential discomfort and inconvenience it could cause. Despite attempts to revive the foundation, its reputation has been tarnished and it can no longer restore it to its former glory.

    • The American Dream's Housing CrisisThe housing industry's supply and demand imbalance results in families being priced out of desirable neighborhoods, necessitating innovative solutions like Flow's affordable housing alternatives.

      The American dream, as defined by Marc Andreessen, consists of three fundamental elements: housing, education, and healthcare. Among these, the housing industry is particularly problematic due to a significant supply and demand imbalance. Despite recent market fluctuations, the demand for housing, especially in high-opportunity areas, far outstrips the available supply. This results in numerous inconveniences, such as families being priced out of desirable neighborhoods or having to make difficult decisions about possessions like musical instruments, as discussed in the beginning of the podcast. The housing crisis is a complex issue that requires innovative solutions, and Flow, a new company in Silicon Valley, aims to tackle it by providing affordable housing alternatives.

    • Andreessen Horowitz Invests $350M in Adam Neumann's New Residential Startup FlowAndreessen Horowitz invests $350M in Adam Neumann's new startup, Flow, to address housing crisis and reduce inequality with a community-focused real estate product. Rumors suggest tokenized rewards and crypto payments may be involved.

      Andreessen Horowitz, led by Marc Andreessen, is investing a record-breaking $350 million in Adam Neumann's new residential real estate startup, Flow, with the vision of creating a product that addresses the housing crisis by offering a sense of community and security. Neumann, the disgraced former CEO of WeWork, has been building a substantial real estate portfolio and aims to disrupt the housing market with Flow, which is expected to launch in 2023. Andreessen Horowitz believes that addressing the limited access to home ownership is crucial for reducing inequality and anxiety in society. While details about Flow's business model and exact offerings are scarce, rumors suggest it may include a proprietary payment system with tokenized rewards and crypto payments. The investment reflects the growing demand for affordable housing and the potential for technology to revolutionize the industry.

    • Flow's approach to housing may not address the root causesDespite identifying the housing crisis, Flow's focus on premium rental properties and buying existing buildings instead of building new ones hinders their ability to increase affordable housing supply and effectively address the root causes of the crisis.

      Flow, a new real estate project led by Marc Andreessen and Adam Neumann, is being positioned as a transformative solution to residential housing, but it may not address the root causes of the housing crisis. The project, which aims to create a premium brand for rental properties, has been buying up existing apartment buildings instead of building new ones. This contributes to the lack of supply and rising prices, going against the stated goal of increasing access to affordable housing. Moreover, the founders' personal objections to multifamily development and profit-driven incentives hinder their ability to effectively address the housing crisis. While they correctly identify the problem, their actions and motivations limit their capacity to bring about meaningful change.

    • Private investments should complement, not replace, government effortsRemember, private investments in innovative housing solutions should not be the sole solution to the housing crisis. Systemic changes and government policies are necessary to address the root causes of the problem.

      While private sector investments in innovative solutions like Flow can bring financial returns, it's essential to remember that they should not be the sole solution to pressing issues like the housing crisis. Instead, legislation and policies that address the root causes of the problem are necessary. The speaker emphasized that idolizing successful entrepreneurs and businesses can lead to exploitation of real problems and creating value primarily for themselves. It's crucial to support systemic changes and prioritize the needs of the community over individual profit. The housing crisis requires a comprehensive approach, and private investments should complement, not replace, government efforts.

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    Lonely Leadership

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    The first leadership struggle I’ve encountered is lonely leadership. As you progress through an organization it gets harder to find people that understand you. Great leaders are told that transparency is a must. Be transparent. Share things with others around you. While transparency holds importance, is it always the answer? Transparency is only important to a point. There are some things you should not be transparent about.

    You should never be transparent about your self-doubt. Being open about your struggles with employees can cause them concern about your organization. Secondly, never be transparent about your opinion of others. Especially key stakeholders. They will find out. My philosophy is to never burn a bridge no matter what. This decision has come back to benefit me throughout my career.

    Thirdly, never be transparent about confidential information shared with you. I’ve seen may promising leaders sidelined because of issues of integrity and trust. Building a reputation of integrity as a leader is crucial. It can be lost in just one decision. Don’t make that mistake. This will shatter your career. Being a leader is lonely. Who can you share things with? Your spouse? Not always. I remember when I was at Teligent and we were the hottest new thing. We were on the cover of Business Week, Forbes, WSJ, NY Times etc. My wife was at her hairdresser one day, and the hairdresser was drilling her about information on Teligent. He assumed she had access to confidential information and was getting aggressive. After that, me and my wife came to an agreement to protect her. I do not share any confidential information with her. Never. She doesn’t want to be in that position.

    Is there anyone you can be transparent with? Your coach or mentor. Let your board/shareholders know that you have a coach or mentor. If you’re going to share confidential information with someone, they should sign a non-disclosure agreement. All of this said, you will be lonely as a leader. It comes with the position. Do you have someone that you can be transparent with?

     

     

    What Got You Here Won’t Keep You Here

    Will the skills that helped you reach your position keep you there? These things will not keep you here or progress you in your career. Look at me for instance. My specialty is technical work. I have not touched technical work in 15 years. I had to learn new skills in order to advance. How did I learn those different skills? Right out of college, I was told by my mentor Bob that in order to find success, I had to broaden my playing fields. I knew my specialty very well, but I needed to have a variety of experiences. What did I do? I rotated in marketing, sales, finance, IT, etc. I did everything. While these experiences broadened my knowledge, it wasn’t enough. What were the skillsets that brought me to success?

    • Organization design - How do you structure a team? You have to be willing to adjust in order to create a successful organizational structure.
    • People Reading - Each person is unique and you have to commit to learning them.
    • Consensus BuildingLearn the individuals and their objectives. I do one on one calls with each member of my board before meetings. This helps me to get a better grasp on the thoughts and feelings of each member.
    • Objective Setting – How do you set good objectives? use OKR’s/make sure they are clear and measurable. Grant autonomy letting your experts use their skills to achieve ultimate success.

     

    Consequences of Ideas and Statements

    Ideas and statements made as a leader have consequences. Things will get taken out of context and all the sudden they become the “new law”. When I was CEO at Cable Labs, I told my team that the most common statement they would hear was “Phil said”. In many cases what I said was misinterpreted or misused. The best proof point of this in my career is press coverage. If you google my name and read the articles on the first 16 pages of google, not a single article got the situation 100% correct. At Cable Labs, we had issues with the press pushing out false information. This caused employees to start worrying about the longevity of our Colorado office. I had to call a meeting with my all my employees to address this issue. I made a commitment to my staff that day that they would hear from me first, and not the press. In fact, this created a new culture at Cable Labs called the “no surprise rule” to constantly remind my employees of this. Why do I do this? Because ideas and statements can be a disaster. You need to be hyper-vigilant about what you say, how you say it, and how you operate. Are you conveying statements the right way?

     

    Creative Self-Doubt

    What is the number one skill leaders are expected to have? Creativity/ ingenuity leading to product, service, and operational innovation. Many leaders get promoted to a leadership role because of innovation they are credited with. Look at Nobel Laureates. There is a trend of peaks seen from the recipients of Nobel awards. One in their mid-twenties and one in their mid-fifties. The question comes down to this. Do you still have your creativity?

     

    What type of innovator are you?

    Conceptual Innovators - “Think outside the box,” challenging conventional wisdom and suddenly coming up with new ideas. Conceptual innovators tend to peak early in their careers.

     

    Experimental Innovators - Accumulate knowledge through their careers and find groundbreaking ways to analyze, interpret and synthesize that information into new ways of understanding. The long periods of trial and error required for important experimental innovations make them tend to occur late in a Nobel laureate’s career. Success comes from recognizing that as an innovator we need to shift from the conceptual to the experimental.

    Let’s connect; I am on LinkedIn, Facebook, Twitter. If we do connect, drop me a note and let me know. The email address is feedback@philmckinney.com or you can go to PhilMcKinney.com and drop me a note there. If you are looking for innovation support go to TheInnovators.Network or want to be challenged to develop the next big idea, check out our Disruptive Ideation Workshops. Don’t forget to join our Innovators Community to enjoy more conversations around innovation.

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