Positive users recommend Eric Ries' new book on building incorruptible companies because they find its concepts helpful and praise the author as credible.
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#1728
One of the best concepts of the book is “financial gravitational pull” that makes everyone start to behave in ways that leads to corruption.
This quote gets at one of the problems with corporate boards that Buffett has been pointing out for decades.
“Independent directors operate in their own gravitational field and are impacted by their own career equity incentives. Their professional reputations and future board appointments depend on being seen as responsible by the governance class of our society: investors and the bankers, lawyers, directors, academics, and advisors who serve them.”
In other words, they don’t serve the interests of the company even though they claim “fiduciary duty” compels them to behave in certain ways and take certain actions.
Read the book. Fairly quickly read. Highly recommend. Another key concept is the hierarchy in the gravitational pull. Investors sit on top of management which sits on top of employees, etc. That’s wrong. Investors should partner with management. Just as management should partner with employees. And everyone serves customers. Shareholder primacy is one of the key ideas that has led to problems. The fiduciary duty should be to all stakeholders, not shareholders.
You can dip your toes with a podcast interview if you prefer. There are plenty.
@ericries is the real deal. A loose friend, and the first person to ever interview me for a job back when I was a very young man trying to get into bay area tech from the east coast. He has made a habit of identifying the root problem behind seemingly intractable issues and then doing what he can to fix them. Even over long years and long odds.
Stand for something.
#IncorruptibleBook #startup #entrepreneurship #purpose #motivation #business #innovation #ai #socialimpact #values #booktok
@honam What are the signs of “financial gravitational pull” that public investors should look for besides board comp plans?
Reading a great new book by @ericries https://www.incorruptible.co/ which gets to the heart of what I call digging your own grave. It’s inexplicable and yet I’ve seen it happen over and over again. I’m grateful he wrote it. And there is some hope that it’s possible to create some rare, incorruptible companies.
@ben_mathes Man, someone just texted me about this book today. The universe is telling me to read it, I guess.
@honam Very helpful. I'll order a copy. Have you ever published a list of all the books you've read or found useful?
@honam @ericries Thanks, will check out the audio book version.
