Monday, May 17, 2021

Fwd: Only 6% of execs think introverts are good leaders. Here's why they're wrong.



---------- Forwarded message ---------
From: The Hustle <news@thehustle.co>
Date: Sun, May 16, 2021 at 3:46 AM
Subject: Only 6% of execs think introverts are good leaders. Here's why they're wrong.
To: <stevescott@techacq.com>


The Hustle
The Hustle, Sunday, May 16, 2021
Sunday, May 16, 2021

Why introverts make great leaders

For decades, introverts have been written off as ineffective and incapable business leaders. Here's why that's utter BS.

BY Zachary Crockett

A myth has pervaded the business world for far too long: introverts aren't cut out to be leaders.

Some 65% of senior executives see introversion as a "barrier to leadership," and only 6% think introverts have the people skills required to oversee a successful team.

Many businesses have a singular vision for what a good leader should be — outgoing, gregarious, an expert networker — and write off introversion as some kind of social "pathology."

This is complete nonsense.

We talked to dozens of successful introvert founders and read through 3 decades' worth of leadership studies to explain why.

What is an introvert?

First categorized by Carl Jung in the 1920s, an introvert is most commonly defined as someone who gets his or her energy from alone time rather than socializing.

Unlike their extrovert counterparts who get energy from other people, introverts are typically introspective, quiet (but not necessarily shy), and observant.

introverts versus extroverts

Introverts and extroverts may seem like polar opposites on paper, but there is often overlap — and nobody falls purely in either camp (The Hustle)

Of course, introverts define themselves in many different ways.

The Hustle surveyed 421 introverts who currently work in leadership roles. Here are a few definitions in their own words:

  • "An introvert is someone who prefers isolated scenarios… someone who isn't necessarily anti-social but someone who excels with internal workflow." — David Acosta, co-founder of Rebel PR
  • "To me, it means I get refreshed and rejuvenated by having some quiet time to myself on a regular basis." — Dan Purcell, co-founder of Ever In Touch
  • "Being an introvert doesn't mean you're a loser or socially awkward, it just means you need to be alone when others need to be with people." — Kevin Pasco, co-founder of Nested Natural

Nobody is a pure introvert or extrovert (most are in-betweeners, or "ambiverts"). But in general, it is estimated that 33%-50% of the population skews introverted.

Yet, in the business world — especially among leaders — this isn't the case:

  • 96% of high-level executives identify as extroverts.
  • There is a strong, scientifically proven bias against candidates who fall on the other end of the spectrum.
  • In studies, extroversion is consistently ranked as the most important trait a leader can have.

This has a lot to do with how we've historically thought about leadership.

How culture defines "leadership"

In the most basic sense, leadership is "the process of influencing others in a manner that enhances their contribution to the realization of group goals."

At some point, society's perception of a "good" leader shifted from someone who encourages collective success to a singular, charismatic titan — an outward spokesman more interested in public perception than team building.

Hundreds of studies spanning more than a century have attempted to identify what makes a good leader.

One such study, led by workplace development consultants Jack Zenger and Joseph Folkman, asked 300k+ business professionals to rank the top traits they look for in leaders. The consensus:

traits of a good leader

Introverts are more than capable of exhibiting most of the traits of a traditionally "good" leader (The Hustle)

None of these traits seem at odds with the nature of introverts.

But in our survey, 71% of respondents said they believed there was a stigma against hiring introverts into leadership roles.

Why is this the case?

Myth #1: Introverts shy away from leadership roles

One of the pervading myths about introverts is that they simply don't want to be leaders. That's not the case.

Introverts have emerged as leaders in every arena. Among them:

  • Michael Jordan, arguably the biggest sports star in history
  • Audrey Hepburn, one of Hollywood's all-time great actresses
  • Mahatma Gandhi, the leader of India's nonviolent revolution
  • One-quarter of all US Presidents, including Thomas Jefferson, Abe Lincoln, and Barack Obama

In the business world, some of the most prominent founders, inventors, investors, and technologists — Bill Gates, Warren Buffett, Jeff Bezos, and many more — are self-identifying introverts.

well-known introverted leaders

That's a lot of billionaires (The Hustle)

"I think introverts can do quite well," Bill Gates said in a 2013 talk. "If you're clever, you can learn to get the benefits of being an introvert."

As it turns out, many of the introvert traits that the business world considers to be detrimental and negative can actually be tremendous strengths in a leadership capacity.

Myth #2: Introverts don't have the "people skills" to lead

Many business professionals associate "people skills" with "charisma," and charisma with effective leadership. There are a few problems with that chain of logic.

Recently, researchers analyzed a database of 17k executives and found that, while a charismatic person was more than 2x as likely to be hired as a CEO, this didn't correlate with a better performance once they were hired. In the same study, introverted leaders far outperformed expectations.

While introverted leaders aren't as outwardly bubbly as extroverted leaders, they are more attuned to emotional cues and sensory details.

In fact, introverts experience more blood flow to the frontal lobes and thalamus — areas of the brain that deal with internal processing and problem-solving. Researchers have posited that this offers them a leg up in working through complex personal situations on small teams.

Myth #3: Introverts are bad communicators

It's easy to misinterpret an introvert's internal processing as disinterest. But per our survey responses, most introverts are just methodical thinkers:

"I'll spend a lot of time going over scenarios in my head before actually saying or doing anything," says John Sherwin, CEO of the pharmaceutical startup Hydrant. "It's rare that I put a completely unfiltered thought or plan out in the open."

John Sherwin working

John Sherwin, CEO of the pharmaceutical startup, Hydrant, and a self-proclaimed introvert, works at his desk (via Hydrant)

Our survey elicited dozens of responses from leaders who said their introversion made them better listeners:

  • "I tend to let other people talk, really listen to what they're saying, then come in with less words that are more powerful." — Kevin Pasco, co-founder of Nested Naturals (supplment company)
  • "As an introvert, you're more likely to pick up on emotion and subtle cues from the people you work with, which makes you more effective at negotiating and motivating." — Vesy Ivanova, founding partner of Brand Strategy Agency (creative consulting)
  • "Introverts have the ability to listen to hear, not just listen to respond," — Kellie Knapp, law firm administrator

Research has shown that introverts use more concrete, precise language when describing things. They may take longer to contribute, but when they do speak up, they make sure their contributions are well-developed and valuable.

This way of communicating can actually be beneficial in a leadership capacity.

Myth #4: Introverts don't like collaborating

While introverts generally prefer to work alone, they also excel in working toward a collaborative goal — especially in a dynamic, unpredictable environment like a start-up.

In fact, in our survey, 89% of introverted leaders said they enjoyed professional collaboration.

chart on collaboration

Based on data from a survey of 421 introverted leaders (The Hustle)

A Harvard study found that extroverts excel at leading passive teams (employees who simply follow commands), but are actually far less effective at leading "proactive" teams where everyone contributes ideas.

Introverts are often more effective than extroverts at leading proactive teams because they don't feel threatened by collaborative input, are more receptive to suggestions, and are more attentive to micro expressions.

These benefits can have a measurable impact on profitability and productivity.

Researchers analyzed 57 managers and 374 employees at 130 branches of a major pizza chain and found that franchises led by introverts were 20% more profitable than franchises led by extroverts.

In another study, researchers broke 163 students into 56 groups — some led by an introvert, and others by an extrovert — and had the teams fold as many t-shirts as they could in 10 minutes. They concluded that teams led by the introverts were also up to 28% more productive.

chart

Proactive teams led by introverts are both more productive and more profitable than proactive teams led by extroverts (The Hustle)

"The extroverted leaders appeared threatened by and unreceptive to proactive employees," concluded the study. "The introverted leaders listened carefully and made employees feel valued, motivating them to work hard."

The takeaway: Tips for aspiring introvert leaders

As an introvert, it's easy to feel as if the very foundations of business leadership are engineered against you — especially considering that today's tech czars are as much celebrities as CEOs.

But introverts have unique personality traits that can empower them to be exceptional leaders if properly leveraged.

We asked successful introvert founders to share some techniques they've used to harness the power of their introversion. Here's a selection of what they said:

  • Balance your time: For every 1-hour meeting, make sure to plan at least 30 minutes to yourself.
  • Get out of your own head: Write down all your ideas and share them with someone you trust. Don't rob the world of your internal genius.
  • Be unapologetically genuine: Don't try to be an extrovert, or force yourself to be more outgoing or bubbly.
  • Optimize for deeper (rather than broad) relationships: I need to know someone quite well to feel comfortable asking things of them, and ultimately these relationships end up being more rewarding both personally and professionally.
  • Be clear about your thought process: Introverts store thoughts for a long time before speaking; be sure to make your process transparent.
  • Actionize your observations: As an outsider looking in, you offer a unique viewpoint; turn all your listening and observing into actionable suggestions.
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The Hustle

Wednesday, May 5, 2021

Fwd: 🍏 Apple’s M&A strategy



---------- Forwarded message ---------
From: The Hustle <news@thehustle.co>
Date: Wed, May 5, 2021 at 4:32 AM
Subject: 🍏 Apple's M&A strategy
To: <stevescott@techacq.com>


PLUS: Are there too many digital health startups?
May 5, 2021
The Hustle
The Hustle

Kids might want to close their ears for this one: The New York Department of Education says there will be no more "snow days" this year.

Why? To make up for lost days, classes will be conducted via Zoom on days that snow makes in-person school inaccessible.

The big idea
Apple logo

Here is Apple's M&A strategy

Apple is known for its ironclad secrecy, particularly around new iPhone launches.

The same guiding principle informs the company's mergers and acquisitions (M&A) practices.

As detailed by CNBC, the company is known for small and discreet deals.

Apple closed 100+ deals over the past 6 years...

… a pace of one about every 3 or 4 weeks.

While it did spend $3B on Beats by Dre in 2014 (its largest acquisition ever), Apple hasn't made big headlines in a while.

This is in contrast to its Big Tech frenemy Microsoft, which just dropped $19.7B on AI firm Nuance, its priciest deal since buying LinkedIn for $26B+ in 2016.

One reason we don't hear about the deals: Apple has strict NDAs and advises acquired employees to not update their LinkedIn profiles.

What Apple looks for in a deal

The iPhone maker focuses on filling gaps in its tech stack: It acquired tech for fingerprint ID (AuthenTec), iPhone Shortcuts (Workflow), Apple News+ (Texture), voice assistance (Siri), and Apple Music (Beats).

When Apple wants expertise in a sector, it will buy up multiple firms.

Take semiconductors: It bought P.A. Semi in 2008 ($278m), Intrinsity in 2010 ($121m), and Passif Semiconductor in 2013 (undisclosed).

Once a firm is targeted, Apple requests a demo

If there's interest, the tech giant sends in the deal team (no outside bank is used).

Since the deals are primarily to acquire talent (AKA acquihires) -- and not brand or customers -- Apple makes an offer based on the number of technical employees (~$3m per engineer). It largely ignores revenue or previous fundraising valuations.

These individuals are then offered "golden handcuffs," which are plush deals that vest over 3-4 years… hopefully enough money to make up for the fact they can't update their LinkedIn profiles.

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SNIPPETS

Lifting up Lyft: Ride-hailing firm Lyft is recovering from the pandemic. Sales hit $609m in the first quarter of the year, which -- while down 36% YoY -- was up 7% from Q4 2020.

Tiger on the prowl: Investment giant Tiger Global is looking to raise a $10B growth equity fund. This is mere weeks after raising one of the largest VC funds ever ($6.7B). We wrote more on the firm here.

Oopsie: 4.7k Amazon employees had access to third-party seller data, according to an internal 2015 audit obtained by Politico. #privacy

Solar stocks got burned Tuesday after reports of supply chain bottlenecks and higher freight costs. The Invesco Solar ETF is down ~15% this month. #clean-energy

Judgement day: Facebook's external Oversight Board will decide Wednesday whether or not to reinstate Trump's Facebook or ban him for life. #big-tech

AI Albert Einstein is now a thing. He's got a sense of humor, too. Einstein told us he likes "Mozart, Bach, Vivaldi, and Lady Gaga." #emerging-tech

The latest billionaire is 27-year-old Russian-Canadian programmer Vitalik Buterin who created the ethereum cryptocurrency in 2013. ETH has skyrocketed ~375% in 2021. #fintech-cryptocurrency

During a gold rush, sell shovels. Today, there's a gold rush for audio, and Steph had some killer ideas for 'shovels' in the space. #hustle-picks

What's it really like to be worth $10m vs. $1B+? Trung broke down the "gradations of rich" in this fantastic thread. #hustle-picks

Health Tech
pill bottle with cash

Health startups are flush with cash, but still need to prove their merit

You've def seen them: digital health startups… they're everywhere.

Per The Wall Street Journal, $7B of VC money hit the sector in Q1 2021, the highest figure in at least 10 years.

The main customers for these health services are corporate-benefits departments…

… and they are revolting against the flood of choices

Benefits execs are pushing startups for a few changes:

  • Expand offerings: There are a number of individual apps that specialize in one niche (e.g., heart health, sleep tracking, mental health). Corporates want combined offerings, so they don't have to subscribe to a million options.
  • Pricing: Corporates want to pay by use, instead of purchasing monthly subscriptions that often go unused.
  • Most importantly: They want companies to prove that the product actually delivers better care and lowers costs.

Health companies are taking note

Telemedicine provider Teladoc moved into diabetes monitoring with a $13.9B acquisition of startup Livongo.

That's one of many deals for Teladoc, while its main competitors -- like MDLive, Doctor on Demand, and PlushCare Inc. -- are active on the M&A front, per WSJ.

And in a very meta development, here's another hot investment area: apps that help you manage other health apps (AKA care-navigation apps).

At the current funding pace, you'll soon see these apps everywhere too.

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Supply-chain blues
manufacturing

Just-in-time auto manufacturing is having a rough time

In 1913, Ford launched the assembly line to great success on one basic premise: Never stop churnin 'em out.

Unfortunately, the past year has highlighted the line's fatal flaw: If even a single screw is out of stock, everything has to be turned off.

First, a brief history lesson

With just-in-time manufacturing, supplies show up just as needed to save on space and costs.

Just-in-time manufacturing developed over decades:

  • 1920s: Ford mined its own iron which it then used to build cars, but the company later shifted toward outsourcing suppliers
  • 1950s: Toyota executive Taiichi Ohno went to an American supermarket, saw how items were restocked as needed, and tried to replicate the process for cars
  • Present day: Companies from all sorts of industries -- auto firms, Apple, McDonald's, and Target -- use just-in-time to save on costs

It's a great system for when things go as planned.

Problem is, nothing seems to be going as planned

In the last few months, the auto world has taken one helluva beating:

  • The Texas snow debacle closed a refinery that produces 85% of US resins, used to make seat cushions. Toyota paused several plants as a result
  • A March fire at Japanese chip manufacturer Renesas -- which supplies of the industry -- sliced production capacities

Ford, for example, could see a 50% production hit and miss out on $2.5B in profits.

Companies are working to improve by stockpiling inventory, building vertically integrated supply chains, and, in the case of Tesla, signing exclusive deals for access to raw materials.

If anything, this whole ordeal has been a stark reminder for the auto biz not to put all their eggs in one basket.

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Podcast

How a retired cop makes nearly $1m giving 'crime walk' tours in NYC

That's right -- 8k+ people have bought the tour for ~$100 each!

In episode #177, we talk about:

  • How you can pull off a similar tour in your own city
  • Why the chicken rental business is a "blue-collar side hustle" that you should start
  • How to become the "Barstool of Tech" (we think this is a multimillion-dollar opportunity)
🎧 Listen here →
TRENDS

Would you rather…

  1. A million connections on LinkedIn
  2. $10 million
  3. A like from @elonmusk

Our friend, Packy McCormick recently tweeted this question and while we love the conundrum, we've opted for a fourth option: a top 20 business podcast.

If you haven't heard yet, My First Million achieved that goal last week, thanks to Sam's antics.

That's why we broke down exactly how he did it in Trends this week, among his other antics... including his chain of hotdog stands selling "weiners as big as a baby's arm" and his early pen names.

That's not all. We also covered:

  • A subreddit that's growing like a weed, that may be hiding the next viral ingredient (think Hibiscus Very Berry)
  • A gifting app that raised $4m and sent 10k gifts within 2 months of launch
  • The "Netflix For Gadgets" that grew their ARR by 2.2x last year and saw a 2,000% increase in traffic to their B2B store
  • And much more….

To access the full report and our full archive of 100+ sends, try trends for $1.

Get ahead of the pack →
Memes of the day

Here are 3 hilarious Apple memes, all around one viral Tim Cook photo:

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