Why So Many CEOs Are Engineers
Summary
TLDRThe script discusses the rising trend of engineers leading successful companies, challenging the traditional preference for MBAs. It highlights that in 2018, more CEOs had engineering degrees than MBAs, with notable examples like Jeff Bezos and Elon Musk. The script argues that engineers' technical expertise and problem-solving skills are crucial for innovation and product development. It also features stories of engineers like Satya Nadella and James Dyson, emphasizing their hands-on approach and dedication to detail. The video concludes by suggesting that a strong foundation in math and computer science is essential for aspiring engineers and problem-solvers.
Takeaways
- 👨💼 The trend of CEOs with engineering backgrounds is increasing, with more engineering degree holders leading top companies compared to those with MBAs.
- 🏫 MBAs, traditionally considered a pathway to CEO positions, are now being questioned for their value, especially with high costs and a shift in focus towards product innovation.
- 💡 Elon Musk advocates for less MBA influence in companies, suggesting that business degrees may lead to excessive focus on board meetings and finances rather than product development.
- 🚀 Musk's success at Tesla and SpaceX is attributed to his self-taught engineering skills and his focus on creating high-quality products that drive profits.
- 🤖 Engineering CEOs like Satya Nadella at Microsoft have demonstrated the ability to innovate and adapt their companies to changing market conditions, emphasizing the importance of technical knowledge.
- 💼 The background in math, science, and technology of engineers is beneficial for designing, building, and improving products, as well as solving technical challenges.
- 💡 Technical know-how is highly valued in the business world, as seen in the praise for Musk's deep understanding of his products by Sandy Munro, an engineering consultant.
- 💡 The innovative spirit of engineering has been credited with saving companies like Microsoft, which needed to adapt and innovate to remain competitive.
- 🛠️ Engineers are known for their problem-solving skills, which are applicable across industries, from building bridges to designing rockets for Mars.
- 💡 Persistence and attention to detail are key traits of successful engineers, exemplified by James Dyson's 15-year journey to perfect his vacuum cleaner design.
- 🔍 The hiring process at companies like Amazon, led by Jeff Bezos, emphasizes the importance of analytical thinking and problem-solving, qualities often associated with engineers.
Q & A
What commonality do Jeff Bezos, Tim Cook, Sundar Pichai, Lisa Su, Mary Barra, and Jensen Huang share?
-They are all engineers and are currently or have been the heads of some of the most successful companies in the world.
What was traditionally considered the best educational path for aspiring CEOs?
-Getting a Master of Business Administration (MBA) degree was traditionally considered the best path for aspiring CEOs.
According to the Harvard Business Review's 2018 findings, which type of degree was more common among top-performing CEOs?
-In 2018, there were more CEOs with an engineering degree than an MBA, with 34 having engineering degrees compared to 32 with MBAs.
What is Elon Musk's opinion on MBAs running companies?
-Elon Musk believes there might be too many MBAs running companies, as they tend to focus too much on board meetings and finances rather than on product development.
What is the advantage of having an engineering background for a CEO according to the script?
-An engineering background allows CEOs to design, build, create, and improve their products and solve challenging technical problems due to their knowledge in math, science, and technology.
What degree does Elon Musk actually hold, and how did he learn about rocket science?
-Elon Musk holds a degree in physics and economics, and he is a self-taught engineer who learned about rocket science by reading books.
What significant change did Satya Nadella make when he became the CEO of Microsoft?
-Satya Nadella transformed Microsoft by moving its software to non-Windows devices and expanding its cloud business Azure, making it a major competitor to Amazon's AWS.
How did James Dyson demonstrate his perseverance and attention to detail?
-James Dyson spent 15 years and created over 5,000 prototypes to develop the perfect bagless vacuum design, which led to the creation of the multi-billion dollar company that bears his name.
What is Amazon's approach to hiring according to the script?
-Amazon is known for its tough interviews, and Jeff Bezos used to meet every candidate himself during the company's early days, asking analytical questions to assess their problem-solving skills.
What is the significance of a good foundation in math and computer science for those interested in engineering or learning more about the world?
-A good foundation in math and computer science is crucial for problem-solving and is essential for anyone aspiring to become an engineer or wanting to understand the world better.
What resource is mentioned in the script for those looking to improve their skills in math, science, and computer science?
-The script mentions Brilliant, a problem-solving website offering over 60 interactive courses in math, science, and computer science, as a resource for skill improvement.
Outlines
🔧 The Rise of Engineer CEOs
This paragraph discusses the increasing trend of engineers leading successful companies, contrasting the traditional path of obtaining an MBA. It highlights that in 2018, more CEOs had engineering degrees than MBAs, as reported by Harvard Business Review. The paragraph also touches on the high cost of MBA programs and notable figures like Elon Musk, who criticizes the overemphasis on business degrees. Musk advocates for a focus on product development, which is a strength of engineers due to their technical background. The narrative includes examples of engineers who have become CEOs and their contributions to innovation and problem-solving within their companies.
🎓 Emphasizing the Importance of Math and Computer Science
The second paragraph shifts focus to the importance of a strong foundation in math and computer science for aspiring engineers or anyone interested in the world of technology. It promotes a problem-solving website called Brilliant, which offers over 60 interactive courses in relevant fields. The platform is described as a valuable resource for learning at one's own pace without the pressure of exams, providing personalized feedback on mistakes. The paragraph concludes with a call to action for viewers to sign up through a provided link, with an incentive for the first 200 users to receive a discount on a Premium subscription.
Mindmap
Keywords
💡Engineers
💡MBA
💡Product Focus
💡Innovation
💡Technical Know-How
💡Problem-Solving
💡Risk-Taking
💡Hiring Standards
💡Discipline
💡Brilliant
💡Premier Subscription
Highlights
Many successful CEOs like Jeff Bezos, Tim Cook, and Sundar Pichai have engineering backgrounds.
Harvard Business Review found more CEOs with engineering degrees than MBAs in 2018.
Elon Musk believes MBAs may focus too much on business aspects rather than product development.
Engineering background is beneficial for designing, building, and improving products.
Sandy Munro commends Elon Musk's deep technical knowledge about his products.
Satya Nadella, an engineer, transformed Microsoft under his leadership.
Nadella made Microsoft relevant by expanding its software to non-Windows devices.
James Dyson's perseverance led to the creation of a multi-billion dollar company.
Engineers are known for their problem-solving skills, which is crucial in business.
Jeff Bezos used to personally interview candidates in Amazon's early days.
Bezos emphasized the importance of hiring candidates with an analytical approach.
Engineers excel in both tech and non-tech industries due to their problem-solving abilities.
A strong foundation in math and computer science is essential for aspiring engineers.
Brilliant offers over 60 interactive courses in math, science, and computer science for free.
Brilliant's courses are designed for self-paced learning with no exams.
The first 200 people to use the provided link get 20% off the Premium subscription.
Transcripts
There's one similarity between Amazon and Blue Origin CEO Jeff Bezos, Apple's Tim Cook, Alphabet's
Sundar Pichai, AMD's Lisa Su, General Motors' Mary Barra and NVIDIA's Jensen Huang. These
days, the heads of some of the most successful companies in the world have one thing in common.
They're engineers. For those who aspire to be CEO of a company one day, getting an MBA - a Master
of Business Administration degree - used to be the way to go. But that's not so true anymore.
Harvard Business Review used to publish an annual list of the top 100 best-performing CEOs. In 2018,
they found that for a second year in a row, there were more CEOs with an engineering degree than
an MBA. 34 compared to 32. Some had both. Getting an MBA can come with a hefty price tag. Top graduate
schools such as the University of Pennsylvania's Wharton or Harvard Business School will set you
back over $200,000. Now, some CEOs are telling you to save your money.
Elon Musk went so far as to say, "I think there might be too many MBAs running companies" in an
interview with the Wall Street Journal. He thinks those with business degrees spend too much time
in board meetings pouring over power points and finances when their focus should be on the product.
The thinking being that if the product is good the profits will follow. In the case of Musk that means
building great electric cars at Tesla or great reusable rockets at SpaceX. That's where being
an engineer is helpful. Engineers can design, build, create, and improve their product because of their
background in math, science, and technology. And they can help solve challenging technical problems that
might otherwise scuttle their dreams. Technically, Musk has a degree in physics and economics not
engineering. He's a self-taught engineer who read books to learn about rocket science.
When engineering consultant Sandy Munro interviewed him for his YouTube channel
Munro Live, he said it's Musk's knowledge that stands out. I was blown away. I've seen dozens
of CEOs. I've never seen a CEO ever or a president that knew more about the product. That technical
know-how that comes with an engineering background goes a long way toward building better products.
Just ask Satya Nadella, the engineer at Microsoft who rose to become CEO.
When he took over the top job in 2014, he had to figure out a way to make Microsoft relevant as it
faced an onslaught from Apple. We now need to make Microsoft thrive. The software company struggled to
thrive under the leadership of his predecessor Steve Ballmer. Its products were far from
revolutionary. The Surface was a response to the iPad, the Windows phone and answer to the iPhone.
Ballmer has a degree in mathematics and economics from Harvard which helped balance the books but
didn't do much when it comes to innovation. When Nadella took over, he transformed Microsoft - moving
its software to non-Windows devices. For example, bringing Microsoft Word to the iPad and the iPhone.
He also expanded its cloud business Azure which has become the biggest rival to Amazon's AWS.
In his first email to employees as CEO, Nadella wrote: "Our industry does not respect tradition - it
only respects innovation." That innovative spirit of engineering saved Microsoft. But it's not easy.
It requires risky moves and not accepting failure. As American inventor Thomas Edison famously said:
"I have not failed. I've only found 10,000 ways that won't work." James Dyson, the British engineer, knows
a thing or two about not giving up. He became frustrated when a vacuum he had at home kept
losing suction. So he decided to build a better vacuum himself. He spent 15 years tinkering with
over 5,000 different prototypes to come up with the perfect bagless design. I'd like to give
you a little demonstration. The payoff for his perseverance was a multi-billion dollar company
that bears his name. In order to be successful, Dyson was invested in the fine details of his
company. Engineers aren't afraid to get involved in the day-to-day business - especially when it comes
to hiring. Amazon is notorious for tough interviews. Bezos, who has a degree in electrical engineering
and computer science, used to meet every candidate himself during Amazon's early days. He would ask
quirky questions like: How many gas stations are there in America? He wasn't after the right answer
but wanted to see whether the candidate had an analytical approach in order to come up with an
informed response. Bezos once said setting the bar high for hiring was the most important factor for
the online retailer's success. It's no surprise that engineers make it to the top of the tech industry
which has seen explosive growth over the years. But they're also doing well at non-tech companies.
Like Jeffrey Sprecher, the CEO of the holding company that owns the New York Stock Exchange.
He has a degree in chemical engineering. I've never had a job that had anything to do with chemistry
but the discipline that I went through there taught me about problem-solving and business
is really just that. Engineers are very good at solving problems and that's the key to doing
everything from building a bridge across a river to designing a rocket to get to Mars.
If you've been inspired to become an engineer or simply want to learn more about the world,
a good foundation in math and computer science is crucial. A problem-solving website called Brilliant
can help put you on the path to success. And it's free to sign up. Whether you want to practice
programming, you're struggling with calculus, or you're hoping to brush up on your algorithms, my
sponsor Brilliant offers over 60 interactive courses in math, science, and computer science.
You can learn at your own pace, there are no exams. If you make mistakes while practicing,
Brilliant explains exactly where you went wrong. You can sign up with the link in my description.
And the first 200 people to use my link will get 20% off the Premium subscription which
gives you unlimited access to all the courses.
Thanks for watching Newsthink.
I'm Cindy Pom.
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