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
- šØāš¼ The trend of CEOs with engineering backgrounds is increasing, with more engineering degree holders leading top companies compared to those with MBAs.
- š« 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.
- š” 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.
- š 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.
- š¤ 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.
- š¼ The background in math, science, and technology of engineers is beneficial for designing, building, and improving products, as well as solving technical challenges.
- š” 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.
- š” The innovative spirit of engineering has been credited with saving companies like Microsoft, which needed to adapt and innovate to remain competitive.
- š ļø Engineers are known for their problem-solving skills, which are applicable across industries, from building bridges to designing rockets for Mars.
- š” 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.
- š 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
š§ 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.
š 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
š”Engineers
š”MBA
š”Product Focus
š”Innovation
š”Technical Know-How
š”Problem-Solving
š”Risk-Taking
š”Hiring Standards
š”Discipline
š”Brilliant
š”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 BlueĀ Origin CEO Jeff Bezos, Apple's Tim Cook, Alphabet's Ā Ā
Sundar Pichai, AMD's Lisa Su, General Motors'Ā Mary Barra and NVIDIA's Jensen Huang. TheseĀ Ā
days, the heads of some of the most successfulĀ companies in the world have one thing in common.
They're engineers. For those who aspire to beĀ CEO of a company one day, getting an MBA - a MasterĀ Ā
of Business Administration degree - used to beĀ the way to go. But that's not so true anymore.Ā
Harvard Business Review used to publish an annualĀ list of the top 100 best-performing CEOs. In 2018,Ā Ā
they found that for a second year in a row, thereĀ were more CEOs with an engineering degree thanĀ Ā
an MBA. 34 compared to 32. Some had both. Getting anĀ MBA can come with a hefty price tag. Top graduateĀ Ā
schools such as the University of Pennsylvania'sĀ Wharton or Harvard Business School will set youĀ Ā
back over $200,000. Now, some CEOs are telling you to save your money.Ā Ā
Elon Musk went so far as to say, "I think thereĀ might be too many MBAs running companies" in anĀ Ā
interview with the Wall Street Journal. He thinksĀ those with business degrees spend too much timeĀ Ā
in board meetings pouring over power points andĀ finances when their focus should be on the product.Ā Ā
The thinking being that if the product is good theĀ profits will follow. In the case of Musk that meansĀ Ā
building great electric cars at Tesla or greatĀ reusable rockets at SpaceX. That's where beingĀ Ā
an engineer is helpful. Engineers can design, build, create, and improve their product because of theirĀ Ā
background in math, science, and technology. And theyĀ can help solve challenging technical problems thatĀ Ā
might otherwise scuttle their dreams. Technically,Ā Musk has a degree in physics and economics notĀ Ā
engineering. He's a self-taught engineer whoĀ read books to learn about rocket science.
When engineering consultant Sandy Munro interviewed him for his YouTube channelĀ
Munro Live, he said it's Musk's knowledge thatĀ stands out. I was blown away. I've seen dozensĀ Ā
of CEOs. I've never seen a CEO ever or a presidentĀ that knew more about the product. That technicalĀ Ā
know-how that comes with an engineering backgroundĀ goes a long way toward building better products.Ā Ā
Just ask Satya Nadella, the engineerĀ at Microsoft who rose to become CEO.Ā Ā
When he took over the top job in 2014, he had toĀ figure out a way to make Microsoft relevant as itĀ Ā
faced an onslaught from Apple. We now need to makeĀ Microsoft thrive. The software company struggled toĀ Ā
thrive under the leadership of his predecessorĀ Steve Ballmer. Its products were far fromĀ Ā
revolutionary. The Surface was a response to theĀ iPad, the Windows phone and answer to the iPhone.Ā Ā
Ballmer has a degree in mathematics and economicsĀ from Harvard which helped balance the books but
didn't do much when it comes to innovation. WhenĀ Nadella took over, he transformed Microsoft - movingĀ Ā
its software to non-Windows devices. For example,Ā bringing Microsoft Word to the iPad and the iPhone.Ā Ā
He also expanded its cloud business Azure whichĀ has become the biggest rival to Amazon's AWS.Ā Ā
In his first email to employees as CEO, NadellaĀ wrote: "Our industry does not respect tradition - itĀ Ā
only respects innovation." That innovative spiritĀ of engineering saved Microsoft. But it's not easy.Ā Ā
It requires risky moves and not accepting failure.Ā As American inventor Thomas Edison famously said:Ā
"I have not failed. I've only found 10,000 ways thatĀ won't work." James Dyson, the British engineer, knowsĀ Ā
a thing or two about not giving up. He becameĀ frustrated when a vacuum he had at home keptĀ Ā
losing suction. So he decided to build a betterĀ vacuum himself. He spent 15 years tinkering withĀ Ā
over 5,000 different prototypes to come up withĀ the perfect bagless design. I'd like to giveĀ Ā
you a little demonstration. The payoff for hisĀ perseverance was a multi-billion dollar companyĀ Ā
that bears his name. In order to be successful,Ā Dyson was invested in the fine details of hisĀ Ā
company. Engineers aren't afraid to get involved inĀ the day-to-day business - especially when it comesĀ Ā
to hiring. Amazon is notorious for tough interviews.Ā Bezos, who has a degree in electrical engineeringĀ Ā
and computer science, used to meet every candidateĀ himself during Amazon's early days. He would askĀ Ā
quirky questions like: How many gas stations areĀ there in America? He wasn't after the right answerĀ Ā
but wanted to see whether the candidate had anĀ analytical approach in order to come up with anĀ Ā
informed response. Bezos once said setting the barĀ high for hiring was the most important factor forĀ Ā
the online retailer's success. It's no surprise thatĀ engineers make it to the top of the tech industryĀ Ā
which has seen explosive growth over the years.Ā But they're also doing well at non-tech companies.Ā Ā
Like Jeffrey Sprecher, the CEO of the holdingĀ company that owns the New York Stock Exchange.Ā Ā
He has a degree in chemical engineering. I've neverĀ had a job that had anything to do with chemistryĀ Ā
but the discipline that I went through thereĀ taught me about problem-solving and businessĀ Ā
is really just that. Engineers are very good atĀ solving problems and that's the key to doingĀ Ā
everything from building a bridge across aĀ river to designing a rocket to get to Mars.
If you've been inspired to become an engineerĀ or simply want to learn more about the world,
a good foundation in math and computer science isĀ crucial. A problem-solving website called BrilliantĀ Ā
can help put you on the path to success. And it'sĀ free to sign up. Whether you want to practiceĀ Ā
programming, you're struggling with calculus, orĀ you're hoping to brush up on your algorithms, myĀ Ā
sponsor Brilliant offers over 60 interactiveĀ courses in math, science, and computer science.Ā Ā
You can learn at your own pace, there are noĀ exams. If you make mistakes while practicing,Ā Ā
Brilliant explains exactly where you went wrong.Ā You can sign up with the link in my description.Ā Ā
And the first 200 people to use my link willĀ get 20% off the Premium subscription whichĀ Ā
gives you unlimited access to all the courses.Ā
Thanks for watching Newsthink.
I'm Cindy Pom.
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