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A Strategy Session w/A-Rod + Reid: Build a team of mentors

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Hi, listeners, it's Reed. Welcome to the special strategy session on Masters of Scale. On a usual Masters of Scale strategy session, you would hear a set of questions from a larger group of entrepreneurs that I respond to with in-depth analysis. On today's episode, we're gonna do something. A little different.

Today is a strategy session all about mentorship. You will hear quick precise lessons on building a team of mentors who can help you on your journey to scale. We will break this out into two swift segments that were recorded during our live event. At the Harvard Business School Tech Conference. First,

you will hear part of my interview with baseball star Alex Rodriguez. About his experiences with mentorship. including his unlikely relationship with the great Warren Buffett. And the lessons he learned. Then I give my analysis on what all of us can take away from it.

We'll have a full episode with A Rod coming soon that you won't wanna miss. Second. You will hear questions from the co-student body presidents of Harvard Business School with swift, impactful responses from A-Rod, myself, and our two special guests. HBS Professor Maheer Desai. And Birchbox founder and CEO, Katya Beachum.

We're calling the segment. Three and read. Because it has responses from three special guests. And me. Read.

I hope you enjoy it. You gotta have incredible talent at every position. Huge push. There are fires burning when you're going out. Can you believe it? Such an idiot. And then you go back to this is totally gonna be amazing. There are so many easy ways. Sorry, we made a mistake. But you have to time it right. Nutball ten years later and be like, well that's just how you do it.

Yeah. Yes. Masters this game. I'm Reed Hoffman.

Co founder of LinkedIn. Partner Greylock. And your host. And I believe You need more than great players to win at scale.

You need a team of great coaches. Those coaches will help propel you. To win? After win. Leaders often have a tendency to over index on the team they're hiring to execute on their vision.

And under index. on the mentors and advisors who can help them hone their vision over time. As a leader, you need experienced coaches or mentors. As much as you need a talented team. A team of great coach will help you in a multitude of ways.

When will adjust your approach? Just a teen bit that makes a huge difference over time. Another might save you from that one catastrophic mistake. And still another might encourage you coming back to our baseball metaphor. To take bigger and bigger swings.

So think of your coaches. As a team. Where everyone plays a different key position. I wanted to talk to Alex Arod Rodriguez. Today, not only because he's an incredibly successful investor.

But he's made a series of masterful pivots in his business holdings to go from smart scale investor to impactful mentor and philanthropist. Alex is the founder of A Rod Corp. And through founding and investing has helped scale over thirty companies in real estate. Sports. Wellness.

Media. And entertainment. And technology. Oh. And he's also played a little baseball.

Give it up for our special guests. Alex Red Figure Alex, great to see you. I'm gonna dive right into it since we have some time. Let's talk about some of your earliest Coaches.

What were some of your experiences with these coaches and how did that shape you as a young person? Well, I mean I think if you were to summarize not only my childhood, but my adulthood has been really surrounded with great coaches and mentors. I mean, starting when I was At the boys and girls club in Miami with Eddie El Gayo Rodriguez, who's still there, he's been there forty years. And has had twenty five or so major league baseball players come out of just one little club here in Coconut Grove in Miami.

And my high school coach, Rich Hoffman And then in baseball I had Lou Panel and just great players and coaches and The King Griffiths of the world. All of that collectively is who I am today as an adult, as a father of two beautiful girls.

as a leader to over hundreds of people in our organization at A Wod Corp. With three offices in New York, LA, and Miami. But all of that started with fundamentals. And I think being Obsessed with customer service. In baseball and sports, I always wanted to be a black belt fundamentalist.

Which means I wanted to be like a utility player. With that type of grit, that type of attitude. Hungry. And just really, really wanted to make sure that all the kind of the back office stuff, the stuff that's not sexy.

I wanted to be the best at it because I thought that I had a God given unique skill. I was big and strong and fast. But I just saw so many players come to the minor leagues That were some of the greats. That never made it to the big leagues. And that always scared me.

The line from Bronx Tale, There's nothing worse than wasted talent. And I knew that I had a lot of talent and I wanted to be responsible with that. Therefore I always looked at Whoever was considered the twenty fifth man in the roster I wanted to emulate that attitude, that energy, that humility.

But really be a great worker. And that's come across In every chapter of my life. Which is the same attitude that I bring into the business community. Is humility.

Great. Wanting to do the extra work. Follow and finish the tackle. And the job is never done till it's done. You kinda refer to the early phase, Alex, as the robot.

What does that mean? What did you then Use that transformation to become. In twenty fourteen, I put myself through a very difficult time. Because I had a big screw up and because of that I served the longest suspension in major league baseball history. It was the toughest year of my life.

And I literally sat In massive depression. for a really long time. It was a full year and I really needed the full year. To get my My S in order, right?

A lot of it came from Understanding why I was making these mistakes. And I wanted to get to the core of them and correct them. But what I realized was there was a major difference between Alex or Arod

Pre suspension. And post suspension. And pre-suspension, I thought that winning looked much different. I thought that winning was being like a gladiator. And

hitting home runs and big contracts and being macho and muscles. And what I realized was that I was wrong. That winning actually looks much different. And that winning has much more empathy. And compassion.

And it's we versus I. And it's long term versus short term. And getting it right. is greater than getting it fast. And so let's get to Warren Buffett.

Warren Buffett Iconic business tycoon Philanthropist. and the chairman and CEO of Berkshire Hathaway. One of the world's most successful investors.

Probably a lot our audience here doesn't know. how you actually ended up connecting with Warren and then What are some of the key things you've learned from Warren? Yeah, so uh you know, it's funny, in the year two thousand and one He ended up insuring my contract kinda random.

But he took the most riskiest part of a tenure contract the insured the last three years. And when I heard that, I said, Oh my God, that's pretty cool. Like I'm in business with Warren Buffett. He's my insurance holder. I literally called email him and I thought I would never get an answer. Literally a few hours later, Debbie who's been assistant for many, many years. Decades actually. Wrote back and said

Thank you for the note. Yes, I'm your insurance. Make sure you stay healthy. And by the way, if you do want to come up to Omaha, how's November 5th? And of course I flew out there on like November 5th. And that started about six or seven years of me not missing a year. where I was go spend about five or six hours with him. But what I learned from Warren is really a few things. Number one

that you're an average of the five people you surround yourself with. So collecting great people. Is vital. You start moving in the direction of the people, good or bad. And that experience has happened for me at a very high rate. So I know exactly what he means. And when I asked him for some advice, he actually had two things, and it they were so simple.

And uh He said number one Be the best baseball player you can. And number two. Just be a gentleman. Be the nicest human being you can.

It was so simple. But His whole thing is just Really simplicity. And narrow and deep, now wide and shallow. And how did that inform your initial shift into investing? Everyone knows you're like one of the best baseball players of all time, but also

You're a massively successful investor. Yeah, you know, Re he always talks about, you know, have a great team, stay in your circle of competence. And don't try to reinvent the wheel. So when I first got involved in investing, it was in my early twenties. I remember a night when my mother came home

And they kept raising the rents. Every eighteen months or so. And I saw the pain in her face that We just had pressure that we had to pay the rent. If not, we had to keep moving. And I said, Boy, if I can ever trade places with the landlord.

And Be the landlord and not the tenant. So about twelve years later, I had my first opportunity to buy a duplex. And a few years later I sold it for double. And then I bought a four plex and eight plex. And I ended up growing that portfolio to north of twelve thousand apartment units.

In fourteen cities all over the south іс United State. About eight years ago, we started our VentureArm and we own over thirty companies. We're taking about six or seven public this year. And it's really exciting when we do we have an incredible team. We're very entrepreneurial and we enjoy ourselves.

And how did you get into tech? What was the bridge to that? Yeah, you know, I started spending some time like two thousand fourteen, fifteen, sixteen, a lot of time in Silicon Valley. And I started to get it a lot of smart people, Chuck Chai, who runs Eric Schmidt's office. you know, Joe Lansdale, Guy of Seri and Ashton. We were just kind of

sniffing around and I've always had a good nose to kind of what's next and You know the great Wayne Gretzky says go where the puck is going and not where the puck is. And I just felt that Silicon Valley was the next big thing. And I started being a consumer.

And we ended up building out our team. The way that coaches and scouts found me We started spending a lot of time with founders. And what I really enjoyed, readers, like you, they call me at one in the morning and say, I have an idea. I have an idea. And a lot of times is you know, you coach them and you say, Okay, let's slow down, let's speed up.

Let's get you the right team. So that's how I got involved in tech. Not only have you obviously been uh made your career by being very smart and g having a team of coaches and mentors around you, But also you have turned around and become a mentor yourself. Say a little bit about that. Yeah, I think that we're a result of our past and our environment.

Magic Johnson started mentoring me about twenty, twenty five years ago when I was a really young player in the league. And I thought, wow, if Magic can do it, if he can play for the Lakers and win championships. And he can also be a hall of fame businessman in the boardroom, I said, if he can do it, I can do it. And I saw how powerful mentorship was in my life. As a mentee, I benefited from that. Now as a mentor.

I have so many young athletes reaching out saying, I want to get involved in investing. How do I do it? It's hard to pick'em all, but you know, I have at least a dozen That I'm constantly talking to. And saying maybe think about it this way, maybe Think about it that way.

The very best ones read are the one that asked the most questions. They're enthused. They lean in and they're very inquisitive. Alex, thanks for sitting with me. So How do we quickly understand some of the key takeaways from Alex's really insightful comments? So One, you're the collection of who your mentors are. There's a very great way of thinking about life as a team sport, not just as an individual sport. The same thing is true of mentors.

I tend to think of it as a network of mentors. You're composing these networks or these teams around you, and you are the composite. Of that. Part of it is you also notice from what Alex has illustrated. He didn't approach any of these as hey come be my mentor or hey do this for me. It's a relationship. For example, the way that he

Called Warren. It's like look, you're already an investor. And me were already partners. together. This could be really great if we start talking. Now, of course Part of Warren's interest is it's Alex. Like, oh, there's all these things I can learn and that's a mutual discussion. Everyone has some aspect of that. So you say, Hey, I'm a young MBA student starting in my career, it's like, Well what have you seen around you? What have you seen in tech trends? What can you offer in the dialogue and so forth that's helpful?

Because The best mentor or coach is Із натолисон you can learn from. But someone that can learn from you as well. When you've build substantial wealth through your business, it's often tied up in a single equity position.

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Hey listeners, Bob here. If you listen to Rapid Response on Masters of Scale, you may be missing half the show. Because every Friday we release a second rapid response exclusively in the Rapid Response feed. The guests and topics are just as compelling and timely from Ford's CEO to NASA's administrator to the lessons from The Devil Wears Prada. It takes about 10 seconds to find, just search rapid response wherever you listen to podcasts and hit follow to make sure you never miss an episode. I hope to see you there. Humans will never be more intelligent than AI. There's gonna be two types of companies.

Those were great at AI and those that went out of business because they weren't. How do we build a future? That is human centered. I'm Rana El Chayubi. And on my podcast, Pioneers of AI, we answer that question and so many more. As an AI scientist, entrepreneur, and investor, I know what it takes to build AI that works for everyone. Every week I sit down with the pioneers shaping our future.

and we take you behind the scenes of the AI that's transforming our lives. Find pioneers of AI wherever you tune in. We're back. And now it's time for the second segment of this special strategy session, recorded live at the Harvard Business School Tech Conference. For the rest of the show, you will hear Master the Scale executive producer June Cohen.

Co-hosting the event with me and guiding us through the strategy session. Here's Jim. We are moving on to one of our famous strategy sessions where Reed thinks alongside entrepreneurs. Now this strategy session, we are calling it three and read. Because the session features you, Read, plus three special guests. What will happen is that we'll hear a question and then each of you will share your wisdom within a very strict time limit, read. Would you be so kind as to introduce our special guests?

Well Alex Arod needs no introduction. But we also have HP S Professor Mahir Desai As most of you know, Maheer is an economist and a professor at Harvard Business School. He's also an author and host of the After Hours podcast.

Which comes Highly recommended by me personally and by many people. And finally. The incredible Catcha.

Beachem. Kachet is the co-founder and CO of Birchbox, an HBS alumni. In fact She founded Birchbox in two thousand and ten. While at Harvard Business School.

Welcome, Arod. Professor Maheer. And Kachia. Yeah. Thank each of you for being part of this for bringing your wisdom and willingness to this very fast feedback session called Three N Read. Our questions will actually come from the HBS student body co-presidents. And first up is Annie Platchta. Worked in finance before coming to HBS. Annie, thanks for playing. Tell us your question for three and read.

Thanks so much for inviting me to be a part of this. My question is about the role of resilience. So for the class of twenty twenty one, the last year has been full of unexpected challenges. But we know on the long journey of entrepreneurship There will be plenty of those moments.

What can we learn and take away from the disappointments we face this year to make us better leaders, better teammates? And build a better game plan. Here, we are gonna come to you first. Thanks, June. And thanks, Andy, for that question. I gotta say, for starters, batting leadoff for Alex Rodriguez is a new career highlight for me. So I love the question about resilience. And the first thing to say, I think, is we've lived through this really remarkable time this last year. And the first thing is to really

Take an inventory of the toolkit that got you through. This last year. 'Cause I think that toolkit, whatever it was, you know, for some people it was sourdough, for some people it was walking a lot. For me it was my kids and Exercise.

Take that inventory, because that's the inventory that's going to help you for the rest of your life, because it's so individual, what contributes to resilience. Second thing I would say is. try to reframe this last year as Not a disappointment. Every one of us got something stolen from us. But in a way, it's been a gift because we've learned about ourselves and take those lessons forever. The final thing I would say is The big lesson of the last year is that

Individual resilience is collective resilience. Right, which is just a way of saying we all prosper when we protect each other and we help each other. So for your individual resilience, the thing you want to think about is how do you make the people around you More resilient. Because in that process of thinking about others You will become

More resilient. So that is the lesson of last year, which is collective resilience is individual resilience. And the more you can do that in your life going forward I think the better off you are. Mm. Thank you, Mihir. You have collective resilience is so resonant. Over to you, Katya.

Thank you. I'm so excited to be here. So when I thought of this question, the thing that came to mind is I think there's this big Misunderstanding the challenge and the hardship as being this. block to doing the work. And I just want to make it really clear the challenge is the work. That

Is being in the game. And I think we've all heard these things about, you know, what doesn't kill us makes us stronger. Hindsight is 2020. And my perspective is if we can stop wasting energy resenting this. We can put our energy to leveraging this.

And One thing I also want to point out for all of these entrepreneurs in the audience this year, 2020 and 2021, it's a reminder about how quickly we can change together. And entrepreneurs tapping into the fact that we can. absolutely change collectively. I think it's so inspiring to remember that. And that is a gift for me as an entrepreneur to dream about what is possible. Katya, thank you so much. And I love that. I know I'll be repeating in my head, don't waste time resenting it. It's great wisdom.

Alex, can we come to you next? I had third most of my career and I loved it, but Today, I don't know,'cause two great answers. to follow. Really, really inspiring. Іно, а фиквенми хав таф момент.

It's such an opportunity. It's an opportunity to lead. And need better. Is an opportunity to unlock creativity. To be a better communicator.

When you're grateful. You're a better person when you're grateful. You unlock Great energy. You unlock creativity.

When you're grateful. Good things come your way. You know In times of uncertainty, one thing that I wanted to do In our organization was

I did not want to cut back one person in my organization one dollar. as a contrary, we actually hired because we were growing and we were fortunate to some people just didn't have an option. But I think being very Visible. Outspoken.

Reassuring everybody that things are gonna be okay. When things are great, you can go in the back and disappear and let your troops get all the credit. But when things are tough. Just like we did with the Yankees. If we lost ten in a row, I would look at Jeter.

I say is it me or you? But one of us will give a little talk. And make everybody feel much better. Thank you so much, Alex. I love that. Gratitude does make all of us better. With that.

I'm gonna come over to you, Reed, to bring us home. You know, part of it is next time I think I would put myself at the beginning,'cause we had three great answers already. One, resilience is not just individual, it's group, it's just like you are, it's a team sport. Two, crisis always means opportunity, not Just Fear and downside.

And three. That precisely what great leadership is and great participation in that team is, is that when times get tough. That's the time that you show that you are a leader in the team. And by the way, that'sn't just the individual team leaders, it's anyone who is trying to help that team, because we are all leaders together in those teams. What I would add is um additional to these great things.

So Obviously part of the thing about failure is learning. So in Silicon Valley frequently you say fail fast, it isn't that you're celebrating failure, it's that you're actually seeking to learn. Usually you learn much more from challenging times and challenging moments. Not just what not to do, but what are the key things to do. as you are making that learning clock going. So paying attention to learning, not just you as an individual, but you as a team, you as the group of people around you. Like what can you learn from this?

And then as a thread. That goes through all of the kind of answers that you've heard from these three great answers is humanity. That this life, this work that we do together is being human together. And so to be human with each other, and that's part of reinforcing each other's journey. It's actually kind of hard to imagine answers that distill wisdom better in 90 seconds or less. So thank you to each of you for those initial answers. Thank you to Annie for that question. So the second question comes from HBS co-president Caleb Bradford, originally from Alabama, with work stints at NASA, BlackRock, and the

US government, which is quite the range, Caleb. We're ready for your question. Thanks for inviting me to participate. I have a clear North Star goal in my career. To get there, I have built a team of eight or so mentors to coach me along the way. How do you sustainably grow a mentor relationship over time?

And what does an ideal mentorship relationship look like? Me here, it's you first. Yeah, that's a great question, Caleb. So first, you mentioned eight. So the first thing I would say is Make sure that you don't trade breadth for depth. Which is you want deep mentorships. And if you can do eight, that's great, but

You know, I would take four deep ones over eight shallow ones. The second thing is make sure that So if you have a Men in their sixties It's probably not a great

Set of mentors in a way. You want people who actually represent the diversity of your life and the different kinds of things that you want to do. The next thing I would just say is show up. And show up consistently. Which is don't let a lot of time go by before you're in touch. Share your successes, share your failures, and be there and show up consistently, no matter what the news is, because that's how you build a relationship. And then the final thing I would say is, and this harkens back to something that Reed said, which is

It is a two way street, and so if you find yourself not getting to know your mentors in a personal way. then something's not fully right in the relationship. So for the example, the people who I'm a mentor for They know my family, they know my children, they ask about them and they know me as an individual. And just as Reed suggested, I go to them to understand parts of the world that I don't understand. So it's gotta be a two way street because that's like every relationship, what makes it rewarding. So don't think of it as a one way coaching relationship. Think of it as a two-way friendship. Thank you, Mihir. Love that idea of the two way friendship and relate to it. Katya, we'll come to you next.

Thank you. Yeah, it's a really great question and something that I feel like I'm still really learning. There's so much wisdom to be had. and looking at individuals as having value and having wisdom to impart on you, that's a great place to start. It might bud into a relationship. and a mentorship and it might not, it might just be that moment of wisdom, but When I really think of the best kind of mentorship relationships, I think about it as The best kind of relationships. They're reciprocal.

That means What's been said now several times, it's a two way street. It's really important. I would go as far as to say as it's critical that you don't think about it as they're the only one having something to impart to you. And obviously you want to be grateful and gracious that people are giving you their wisdom, but You have wisdom. You have perspective.

That's valid to share. Love that idea of just the depth that you can get from all of them. Alex, can we come to you next? Yeah, sure. I think part of the thing is rethinking about how you think about mentorship. The first thing is don't think of mentorship as a transaction. Think of it as a relationship and building bridges.

There's all type of mentorships, long term and short term. They could be a mentor, they could be for three or four decades of your entire lifetime. They could be mentors at a period of your time like Covid. that it can meant to you over Zoom or at a difficult time. And always think of not to be repetitive, think of ways of How do you bring values to them?

One of the things I've applied to my life is the ten touch roll. And if Kia was my mentor. I would try to touch bases ten times. before asking her for any single thing, whether it'd be my investor, my partner. I wanted to build real credibility.

And how you do that is by going narrow and deep. And keeping it genuine. Eight is okay, Caleb. But Quality is really important.

And can you be great? Uh Ten, twelve things, maybe you can or somebody. I mean For me, keeping the quality is really important. and checking in, figuring out ways and creative ways

Of can I send an article? How do I celebrate? How can I give credit? How can I make a connection? If somebody's wealthier or somebody's prominent Everybody can be helped in some way. And is your job as a mentee?

to create that and just be humble, grateful, and appreciative for their time. Thank you so much, Alex. I'm gonna come over to you, read So what you've heard is obviously that it's a relationship, not transactional. And what Alex has just said, how the relationship is a two way street and you should be learning from each other. You know, one of the things that Alex said I thought was really important was making sure that you were actually treating it like a relationship, which is your touching base and sharing things and so forth, not just showing up when you have something to ask.

And also that Everyone tends to naturally think time frame should be all the time, and actually that's not the case. There's some mentorships that are so valuable because they're your entire lifetime. There are others that are a specific time. And by the way, you know, even friendships can be similar to that. And they can be still unique and wonderful and joyful. And then part of what Caddy said is So often what people look for when they look for

mentors is I'm looking for, you know, Bill Gates. I'm looking for, you know, Warren Buffett. And actually in fact The people who have that humanity presence with you, fit with you, team with you, knowledge, expertise. And that's part of the reason why thinking about the diversity of experience and exposure and perspectives and points of view and all of that is extremely important. And that gives you the potential depth and the joy of it. And if you're young You do have something to offer. on the two way street.

It is always there, and mentors love mentoring young people. I can't resist sharing one thing as we wrap up, which is Reed, it was one of the best pieces of advice that you gave to me and my co-founder, Darren, when we were starting, we were like, We wanna find one investor and you're like, no, no, you don't want one investor. You actually want a team of investors. You want 10 or 12 investors because I don't think of them as investors, you think of them as advisors, you think of them as your mentors, your coaches, and you need a diverse team of them. It was Some of the best pieces of advice and wisdom we've ever gotten. So I thought I would Put that in.

Thank you to Caleb for your question. Mihir and Katya, thank you so much for joining us for this like very fast phase three and read strategy session. Your ability to distill wisdom into ninety seconds is impressive. And thank you, Alex, for joining us today. Thanks to the HBS Tech Conference for having us. Thank you to Capital One for partnering with Masters of Scale this year. Thank you, June, for co hosting this inventive strategy session with me.

And most of all, a huge thank you to you, our audience, for joining us on this hybrid live strategy session. I'm Reed Hoffman. Thanks for listening. Masters of Scale is a Wake What original. The show is recorded remotely with sanitized audio gear. Our executive producers are June Cullen and Darren Treff.

Our supervising producer is Jay Punjabi. Our producers are Jordan McCloud, Adam Skuse. Catherine Clark Ray, Hallie Bonnie. Marie McCoy Thompson Christina Gonzalez and Chris McCloud.

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