Compass No.22
Being the fastest tortoise, recognizing yellow lights, and listening to your gut
Thought provoking quote
“What I realized was that yellow lights don’t turn green. By this I mean that when we had to make personnel decisions at our various companies, we almost always had plenty of small ‘yellow lights’ warning us that concerning behavioral patterns were emerging. Invariably, we ended up making changes, but realized that it would have been a heck of a lot easier if we had just owned up to the issue and made the change sooner.”
This quote is taken from entrepreneur Ken Hersh’s memoir, The Fastest Tortoise: Winning in Industries I Knew Nothing About, where he recounts his experiences as a pioneer in the private equity space as the co-founder and CEO of NGP Energy Capital Management, which he led from 1988 until 2016. He’s currently in the midst of a “second act” as the leader of the George W. Bush Presidential Center.
Book insights that stayed with me
There were a number of nuggets from The Fastest Tortoise that I want to keep with me.
“Be the fastest tortoise.” The title of the book and this mantra stem from the idea that slow and steady wins the race, but you have to remain disciplined and focused to win.
“Would we trust our kids with them?” This was the litmus test Hersh and his team used in deciding whether or not to back an entrepreneur and make an investment.
“Ready, shoot, aim!” Hersh has a guiding life philosophy that emphasizes a bias toward action. He says, “Trust your instinct to take a shot and then, if it doesn’t work exactly as planned, have the confidence to be able to correct your course.”
“Feed the ducks while they’re quacking.” This refers to Hersh’s thinking on managing through market cycles. In his words, “…I have come to appreciate that in a cyclical business, it is best to know when to hold and when to fold, or as I like to say, feed the ducks while they’re quacking. There are times when everyone is saying that the only way things can go is up. These are the times to sell. Cycles tend to repeat themselves.”
Question inspired by a recent essay
Last week I wrote about holding the space for fear and anxiety, getting quiet enough to exhale and let it go, and then being brave enough to listen to your gut. What is your gut telling you about the direction to head? Where is that voice being muddled or ignored by waiting for a yellow light to turn green?