Tuesday, March 27, 2012

Good Advice From Reid Hoffman - Founder of LinkedIn


This is the transcript of an interview I watched on Sunday. The show was Fareed Zakaria GPS on CNN. He interviewed LinkedIn founder Reid Hoffman.  I found this interview to be thought-provoking. Note the answers from Hoffman that are highlighted.  His basic thoughts are you must take charge, you must adapt, you must always learn and be curious.  You and I are permanent betas. (You will understand as you read on).

One of my most valuable and useful business social networks is LinkedIn, so an interview with the founder is certainly worth taking time to watch or in this care read.  I hope you agree.

ZAKARIA: My next guest has made his name by being ahead of the curve. Reid Hoffman is a serial entrepreneur. He is the co-founder of LinkedIn and a founding team member of PayPal. He is invested in some Silicon Valley 's most famous startups, Facebook, Zynga and others. Before anyone had heard of them. Fittingly his new book is titled "The Start Up of You." Welcome, Reid.

HOFFMAN: Great to be here.

ZAKARIA: Now, you talk about in this book the idea that really you think of yourself as an entrepreneur. What are you seeing that's different?

HOFFMAN: Yes. Well, I think this kind of two things. The first thing is, that everyone should think about themselves as the interpreter of their own life, is the CEO of their own career. And all the things that apply to business you should think about applying to yourself, not just brand, but also how do you invest in yourself, how do you have competitive differentiation, how do you use business intelligence in order to navigate.

Now what that means is in terms of technology is you should be deploying technologies as -- like using the Internet, using LinkedIn to figure out how to invest yourself and how to essentially build your skills, build the connections with people, learn what is going on in industries, and be able to kind of navigate the new world of work.

Because it's changing. Globalization, technology disrupts industries, how do you navigate that both to protect the downside, not get laid off in a bad industry, and also how to get upside in terms of how to find the right kinds of breakout opportunities. And I think since technology is the driving force, both behind globalization and behind industry disruption, attuning yourself to what -- technology change means for you is I think very important.

ZAKARIA: So you found in your life a sort of these constantly meeting new people and learning new things, this was crucial?

HOFFMAN: Yes. I think it's critical for everyone. For example, one of the things we advocate in the book is think about who you're going out to lunch with and occasionally go out to lunch with someone who is, you know, presumably smart, accomplished, maybe two degrees away from you, I think how we first met, and then have a conversation with them where you're learning from each other. Like what's going to change in the world? Where is the world going? How is technology changing? Because then that helps you have the skill set and the knowledge to be adaptable and to be inventive in what you're doing.

ZAKARIA: When you look at the competition that Silicon Valley faces, do you think that the United States can retain its edge in technology?

HOFFMAN: Generally speaking the answer is yes. I think that Silicon Valley continues to be a global leader in the kinds of technology it does. Now I think there's a number of policies we need to be more intelligent about, like high immigration, is one of the ones that every Silicon Valley person beats that drum. Because it's really important. You're either going to import the talent or export the job.

You know, it's very simple. And if you keep the job here, that person then employs restaurants, dry cleaners, accountants, you know, auto mechanics, the whole thing. And that creates a whole wealth of ecosystem. Now, I do think that one of the things is we need to work a little bit more on some technologies, like manufacturing technologies and other kinds of areas because I think we're world class at software but I think we still have a ways to go -- like I think we may be competitively not at the absolute leading edge, I don't know, I'm not a deep expert there, but I think there's a set of technologies we should also be investing in.

ZAKARIA: Do you think that when you look at the young people who come out today, are they, in terms of, you know, science, technology, energy, dynamism, still world class?

HOFFMAN: I think there is a group that is world class which is really good. I think we could -- we could quite happily can accept that number and still be really under where we would need to be. And you know --

ZAKARIA: So you feel there's a shortage of people with the kind of skills we needed?

HOFFMAN: Absolutely. Critically so. I mean, and in fact, actually, given the technology as part of what sets the drumbeat for the future, I think many more people with their hands on, I know, how to participate in building and understanding deploying technology. I mean like one of the things that I've come to realize is, every organization should have a technology strategy.

Technology is disrupting industry. So it's not just, oh, what am I doing to IT, and which system do I use, it's how is technology changing the game that gets played in my industry, changing the nature of products, changing the nature of how we can deploy a service. If we use data, how do we use data to be a good business? And so part of that is coding but part of that is understanding well, how does that fit into a business strategy, how does fit into marketing, how does that fit into product design? It's all aspects of it in terms of being competent in the modern world.

ZAKARIA: Do you think that all these new changes are moving so fast from the mobile to big data and cloud computing, that it's conceivable that 10 years from now the top technology companies in America and the world would be a totally different set of companies?

HOFFMAN: I think that the transformational speed, right, for example, I think in the '20s and '30s the average 10 years and the S&P 500 was 65 years and the '90s was 10 years. The transformational speed you have to invest in the future. I think that applies to organization as it applies to individuals. And given that accelerating rate, I think it's perfectly possible that that the transition happens even at an accelerating rate.

Now what that means for individuals and organization is you need to keep investing and reinvesting in yourself. In the book we refer to that as permanent beta. Which is never think of yourself as a complete product. By the way that should be a company as well as an individual and always be thinking how do I invest in the future, how do I invest in the next generation, next wave?

ZAKARIA: So when you apply the lessons in the book to yourself, do you -- I mean at some level you're, you know, incredibly successful, fabulously rich. Are you done or do you think of yourself as very much still a work in progress --

HOFFMAN: I still think of myself as a work in progress in a permanent beta because --

ZAKARIA: So what happens next?

HOFFMAN: I think being a part of the modern world is being curious. So I always ask, what do I -- what should I -- no. What should -- what question should I be asking because that's part of how you then adapt to the future.

ZAKARIA: Reid Hoffman, pleasure to have you on.

HOFFMAN: Thank you

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