Podcast Summary
Challenging the Value of Financial Maximization: Former Kickstarter CEO Yancy Strickler argues against the natural law of financial maximization in business decisions, suggesting that it can be challenged and potentially replaced by recognizing various ways companies create value
Our society's focus on financial maximization in business decisions may be a questionable value. Yancy Strickler, the former CEO of Kickstarter, argues that our economy runs on values, and the value of financial maximization is not a natural law. He believes that over a long period, it can be challenged and potentially overturned. Kickstarter itself was an assault on this value, as people gave money to projects without a guaranteed return. Companies create value in various ways, and recognizing this can lead to a shift in beliefs and values. Meanwhile, tools like Mercury and Wise simplify financial operations and currency management for businesses, allowing them to focus on their goals.
Returning to the mercy of nature's forces: As climate change intensifies, we may need to adapt to living with more frequent natural disasters and prioritize collective action to mitigate their impact
As the world faces the escalating realities of climate change, we may be returning to a state where nature's forces hold more power over our lives. This is not an entirely new concept, as humans have historically lived at the mercy of natural disasters. However, the frequency and intensity of these events are increasing, and we may soon experience a significant rollback of technological advancements that have protected us from the elements. This shift is not unprecedented in human history, but it does require a collective effort to address the climate crisis and adapt to the changing world. The compassionate approach of groups like Extinction Rebellion, who aim to prepare people for these challenges, could be key to helping us navigate this transition. Ultimately, the power to mitigate the worst effects of climate change lies in our ability to come together and prioritize action.
Will climate change bring out the best or worst in us?: Fear of exposure and aggression online can lead to a hollowed-out public discourse, making it harder to address climate change and other pressing issues. Embracing vulnerability and fostering open, compassionate dialogue can help us rise to the challenge.
Climate change poses a significant question for humanity: will it bring out our best or worst qualities? While scientists can't definitively answer this question, some fear that it may lead to more defensiveness, fear, and cruelty, potentially making it harder for us to address the crisis. This is evident in the lack of productive dialogue online, where people often hide and aggressive voices dominate the conversation. The "dark forest theory" of the Internet, as described by the speaker, suggests that we are the only ones showing ourselves in this digital landscape, making us vulnerable targets. This fear of exposure and aggression can lead to a hollowed-out public discourse, further complicating efforts to tackle climate change and other pressing issues. However, there's hope that by embracing vulnerability and fostering open, compassionate dialogue, we can rise to the challenge and prove ourselves worthy of the trust and support of future generations.
Striving for meaningful discourse and authenticity online: Creating spaces for thoughtful conversations and diverse perspectives is crucial in the digital world, despite the dominance of loud and aggressive voices.
Being vulnerable and authentic in the digital world can be a challenge, as loud and aggressive voices often dominate online platforms. However, it's essential to continue striving for meaningful discourse and authenticity, as shown by examples like Peter's work in journalism. The rise of podcasting as a more productive and constructive form of media is also a source of optimism. The "dark forest theory" of the internet highlights the importance of creating spaces for thoughtful conversations and voices that challenge the status quo. It's crucial to keep pushing for a future where diverse perspectives are valued and encouraged, rather than just the loudest and most confrontational voices.
Language as a hindrance to advanced societies: The speaker explores the idea that language, while seemingly unifying, may actually limit and confuse our communication and understanding of emotions and experiences, as inspired by Isaac Asimov's 'Foundation' series and psychologist Lisa Feldman Barrett's work.
The intriguing idea presented in the "Foundation" series by Isaac Asimov, where an advanced society discovers that language is a hindrance to their progress. This notion was further resonated with by the speaker's personal experience as a new father and the thoughts he gained from a podcast featuring psychologist Lisa Feldman Barrett's work on emotions and language. The speaker pondered over the idea that language, while seemingly unifying, may actually limit and confuse our communication and understanding of emotions and experiences. This concept, although challenging to fully grasp, offers a fresh perspective on the role of language in our lives and interactions. The speaker also touched upon the idea of psychohistory, the belief that with a large enough sample size, it's possible to create mathematical models to predict all human behavior. These thought-provoking ideas were explored in the context of Asimov's "Foundation" series and continue to spark curiosity and conversation.
Understanding human nature in sci-fi and fantasy: Exploring human behavior in fictional worlds can provide valuable insights for both literature and business
Both science fiction and fantasy genres are not just about creating new worlds or using science and magic, but they also require a deep understanding of human nature. Asimov, a renowned sci-fi writer, showcased this through his intricately connected stories that spanned generations. The ability to build believable worlds and predict human behavior based on these foundations is a key element in creating engaging and thought-provoking works. This concept also applies to business, as seen in the creation of Kickstarter, which challenged the traditional profit-driven funding model by focusing on the intrinsic value and passion behind creative projects. By recognizing and exploring the human aspects of various situations, we can gain new insights and perspectives, whether in literature or entrepreneurship.
A platform for niche and small-scale creative projects: Kickstarter helped small-scale creators connect with their communities and build sustainable businesses, filling a gap in the market for projects that struggled to find funding and reach their intended audience
Kickstarter and similar platforms filled a gap in the market for niche and small-scale creative projects that struggled to find funding and reach their intended audience before the advent of crowdfunding. These projects often faced high risks and lacked the necessary scale to attract traditional investors or buyers. The founders of Kickstarter saw an opportunity to help these artists and creators connect with their communities and build sustainable businesses. When Perry Chen approached Yancey Strickler, a music journalist, with the idea, Yancey initially dismissed it as similar to American Idol. However, upon understanding the potential for niche and small-scale projects, he saw the value in the platform and joined the team. The success of Kickstarter lies in its ability to provide a meaningful platform for creators to find their communities and build businesses, even if they are small or serve niche audiences.
Creating exclusivity and scarcity for early success: Limiting invitations and carefully screening projects built desirability and attracted users, creating organic momentum for Kickstarter's growth
The early success of Kickstarter came from creating exclusivity and scarcity around the platform. The founders manipulated the supply by limiting the number of invitations to join and screened every project, making it more desirable and attractive to potential users. This strategy helped build the brand and create organic momentum. A memorable example of this was backing a project by a 22-year-old woman who wanted to sail around the world, and receiving a Polaroid and letter from her during her journey. The founders' roles evolved over time, with Perry Bernstein stepping down as CEO in 2013 and Yancey Strickler taking over, having previously focused on community building and shaping the company's message and identity.
Building genuine connections with other leaders: Being authentic in conversations with other leaders can help alleviate the mental and emotional strain of leading a company, promoting personal fulfillment and preventing burnout.
Leading a company, especially as a CEO, can be mentally and emotionally draining when you constantly put the needs of the organization and its people before your own. This selfless approach can lead to burnout and a lack of personal fulfillment. The tech industry, with its intense social energy and public-facing role, can exacerbate these issues. Being honest and authentic in conversations with other leaders can help build genuine connections and alleviate some of the pressure. Ultimately, it's essential to strike a balance between caring for your organization and taking care of yourself.
Managing Emotions and Identity in Tech Startups: Founders must balance identifying with their work and maintaining a healthy perspective. Prioritizing values over growth can lead to unconventional business decisions but strengthen a company's connection with its community.
Running a tech startup or leading a company can be emotionally taxing, and the degree to which founders tie their personal identity to the success of their businesses can make it difficult to manage emotions and maintain a healthy separation. This intense identification can lead to feelings of vulnerability and a need to constantly protect one's reputation. Some founders may even exhibit sociopathic tendencies as a coping mechanism to deal with the criticism and challenges that come with leading a company. However, it's important for leaders to find a balance between identifying with their work and maintaining a healthy perspective. Companies like Kickstarter have made unconventional business decisions, such as becoming a B Corporation and limiting the ease of raising large amounts of money, to prioritize values over growth and maintain a strong connection with their community. These decisions were not popular but were driven by the founders' shared vision and commitment to their mission.
Learning from Controversial Decisions: Making sacrifices and staying true to values can lead to long-term benefits, even during criticism and opposition. Adopting a Public Benefit Corporation (PBC) structure can align a company's values and mission with its legal framework.
Making sacrifices and staying true to your values can lead to long-term benefits for a company, even if it means facing criticism and opposition in the short term. Perry and Yancey, the founders of Kickstarter, learned this lesson in 2012 when they made a controversial decision that led to a flood of negative comments. However, they believed in their decision and knew it would extend the life of their company. They also learned that financial sacrifice and putting the brakes on growth can create trust and build a strong legacy. In 2015, they formally adopted this philosophy by switching Kickstarter's form of incorporation to a Public Benefit Corporation (PBC), which legally requires balancing financial and non-financial benefits for shareholders and society. This move aligned Kickstarter's structure with its values and could serve as a role model for future entrepreneurs. Being a PBC does not offer tax breaks, but it provides transparency and authenticity, allowing companies to prioritize their mission over maximizing profits.
From periphery to core: The shift to Public Benefit Corporations: Public Benefit Corporations prioritize values beyond shareholder profit, shifting the focus from making money to making a positive impact
The conversion of a company into a Public Benefit Corporation (PBC) brings values and beliefs from the periphery to the core of business operations. This shift, which is not driven by practical benefits but rather by clarity and the ability to make a positive impact, was necessitated by the expectation that companies maximize shareholder value in a post-Milton Friedman world. The founders of the PBC movement identified a problem in capitalism, where companies could only focus on making money for shareholders, and sought to create a new structure for those who care about other values. This required going state by state to convince legislatures to pass laws enabling the PBC form to exist. The idea space, as described by Alan Moore and John Higgs, is a concept that refers to the world of ideas beyond us, where they can exist independently and enter our minds. Writing this book involved tapping into this idea space and observing the flow of ideas.
Exploring the depths of ideas through writing: To write a profound book, immerse yourself in core texts, prepare extensively, and let the writing flow naturally.
Writing a profound and impactful book requires deep introspection and preparation. The author describes his process as trying to place a drop of red in the idea space, questioning our notions of self-interest and value. He imagines his audience as the spirits of the idea space and strives to create a pop philosophical book that resonates deeply. Before starting to write, the author engages in a ritual of reading and immersing himself in the core texts of his ideas. He spends months building up mental reservoirs and only starts writing after extensive preparation. The writing process itself is not linear but involves shifting formats and interacting with the text in different ways. The author emphasizes the importance of being less personally demanding and allowing the writing to flow naturally. Ultimately, the goal is to create a piece of work that can start a chain reaction of ideas and open new doors to understanding.
The Prevalence of Financial Maximization: Financialization is a philosophy that prioritizes profit over people and communities, leading to the replacement of local businesses with corporations.
Our world has evolved into one where financial maximization, or what some call neoliberalism, has become a philosophical system that governs many aspects of our lives. This idea came to the speaker after observing the transformation of their neighborhood in New York City, where a punk dive bar was replaced by yet another TD Bank. They realized that the prevalent belief in making the most money from every decision was the driving force behind this change. This theory, which the speaker named "financialization," was a hard concept to grasp but resonated with many when shared publicly. It's important to note that while businesses exist to make a profit, the challenge lies in understanding that the pursuit of profit can come at the expense of communities and individuals. The speaker's personal experience served as a catalyst for exploring this concept further.
Challenging the single-minded focus on present self-interest: Recognizing the multidimensionality of self-interest allows for more holistic and equitable choices, considering the interests of future selves, communities, and future generations.
Our self-interest extends beyond the present moment and our individual needs, encompassing the interests of our future selves, our communities, and future generations. This expanded perspective, which the author calls "bentoism," challenges the common notion of self-interest as solely focused on the present. The authors cited, Michael Walzer and Elizabeth Anderson, emphasized the importance of recognizing the proper domain of values and the need to consider expressive values before making decisions. By acknowledging the multidimensionality of self-interest, we can make more holistic and equitable choices, freeing ourselves from the tyranny of values that dominate beyond their rightful sphere.
Maintaining a balanced perspective for long-term vision: Adopting a 'Bento' approach can help us prioritize long-term goals while addressing present needs, expanding self-interest, and creating a more sustainable future. Despite human tendency to reason backwards from desired outcomes, we can adapt to new knowledge and foster self-coherence to make authentic decisions.
Our current focus on short-term gains may hinder our ability to address the challenges of the future. To overcome this, we can adopt a "Bento" approach, which involves maintaining a balanced perspective, acknowledging the importance of the future, and making decisions based on a long-term vision. This framework can help us define self-interest in a more expansive way, encouraging innovation and growth without sacrificing the needs of future generations. However, a challenge lies in the fact that people often reason backwards from their desired outcomes to shape their values. For instance, someone may argue that economic growth should take priority over addressing climate change, believing that future generations will be better equipped to solve the problem. Despite this, I believe that humanity is capable of adapting to new knowledge and expanding our self-interest. The NBA's adoption of the 3-point shot serves as an example, as it became widely adopted once its value was recognized. To make a difference, we need to create a critical mass of people who understand and embrace the Bento approach. Through workshops and teachings, I've been sharing this framework as a means to help individuals make self-coherent decisions and live more authentically. By fostering self-coherence, we can overcome self-conflicting decisions and work towards a more sustainable future.
Considering the needs and desires of NowMe, FutureMe, and NowUs in decision making: Use the Bento framework to make decisions that align with long-term goals, values, and maintain relationships while addressing immediate needs.
The Bento framework, which involves considering the needs and desires of one's present self (NowMe), future self (FutureMe), and relationships (NowUs), can help individuals make more effective decisions without forcing a specific value system. The framework, which was inspired by Quentin Tarantino's movie "Pulp Fiction," encourages individuals to consider their long-term goals and values alongside their immediate needs. During a workshop, participants write down their own "should I" questions and then work through the Bento framework to determine the best course of action based on their NowMe, FutureMe, and NowUs considerations. By considering all three aspects, individuals can make decisions that align with their values and prioritize their long-term goals while also addressing their immediate needs and maintaining healthy relationships. The Bento framework is a flexible and adaptable tool that can be applied to various aspects of life, from personal to professional decisions.
Exploring personal values and priorities through the Bento method: Applying the Bento method to important decisions can help understand personal values and priorities, revealing unique benefits and challenges of different forms of work, and emphasizing the importance of creating a positive impact and balancing work and personal life.
Understanding one's values and priorities in different aspects of life can help make important decisions. This was discussed through the use of a Bento method, which involves writing down ideas and feelings related to specific questions about the present, future, and others. The speaker applied this method to the question of whether to focus more on podcasting or writing. They found that while they enjoy writing more, podcasting seems to have a greater impact on shaping people's perspectives. However, both forms of work have their unique benefits and challenges. In the end, the speaker expressed a desire to create a positive impact in the future and prioritize a balanced life with finite work and the ability to spend quality time with loved ones. Additionally, they emphasized the importance of addressing the political sphere to create a better world for future generations.
Long-term perspective in politics: Approaching politics with a long-term perspective, considering values in various domains, and creating a third way can lead to effective change and self-empowerment.
Approaching political relationships and communication with a long-term perspective, rather than focusing solely on policy or self-interest, may lead to new and effective ways to bring about change. The idea of creating a third way, which combines the power of different approaches and values, can lead to self-coherence and empowerment. This awareness-based approach can help individuals make decisions by forcing them to articulate their values in different domains and push them against specific questions. Negotiating with oneself in the moment can leave important considerations opaque, and asking specific questions can bring clarity and empowerment. By considering how to bring together various elements and create a larger conversation, individuals may be able to fix the political system and relationships, ultimately leading to the passage of good policies.
Understanding values leads to better outcomes: Acknowledging human weakness and treating it with compassion, self-awareness, and reading influential books can lead to better outcomes in negotiations and decision-making.
Having a clear understanding of one's values and keeping them in mind during negotiations or decision-making processes can lead to better outcomes. The speaker emphasizes the importance of acknowledging human weakness and treating it with compassion, rather than judging it. He suggests beginning with self-awareness and then finding ways to work around it. The speaker also recommends three books that have influenced him: "Time Loops," which presents a scientific argument for time travel and the existence of pre-memory; "Value in Ethics and Economics" by Elizabeth Anderson, a philosophy book on the importance of values in ethics and economics; and "Dune," a classic science fiction novel that explores the power of myth-making. These books, according to the speaker, have broadened his perspective and deepened his understanding of various concepts.
