Fixed vs. Growth Mindset

Summary

The transcript discusses the concepts of fixed and growth mindsets, highlighting the limitations of a culture of genius that concentrates resources and power on a few star performers, versus a growth mindset culture that fosters potential and resilience through learning and adaptation. The conversation points out the challenges of the genius culture, such as collaboration issues, fear of failure, and the risks associated with relying on a single 'genius' individual. It contrasts this with growth mindset organizations like Microsoft and Nvidia, which prioritize learning, innovation, and resilience, especially in uncertain times. The transcript also touches on the effectiveness of performance evaluation in growth cultures and the potential benefits of a genius culture in specific, high-stakes situations.

Takeaways

• 🧠 The fixed mindset is the belief that intelligence and abilities are static traits, while the growth mindset emphasizes that potential can be developed over time with effort and learning.
• 🌟 Cultures of genius concentrate resources and power on star performers, potentially hindering collaboration and innovation due to fear of failure and status maintenance.
• 🚀 Growth mindset cultures are more resilient, especially in times of uncertainty and ambiguity, as they focus on learning from mistakes and continuous improvement.
• 🔎 High performers prefer a growth culture as it allows them to focus on learning and development without the constant pressure to maintain their status.
• 💡 Companies with a growth culture are more rigorous in their evaluation systems, providing individuals with data on their strengths and weaknesses to facilitate growth.
• 🌐 Examples of growth culture companies include Microsoft, which has successfully transitioned its focus to cloud computing, and Nvidia, which invests in startups with a similar culture.
• 🚫 Cultures of genius can lead to key man risk, where organizations rely heavily on a single individual, often leading to ethical issues and a lack of accountability.
• 🤔 While genius cultures may inspire confidence externally, growth cultures actually make more decisive and less risky decisions based on data and rapid experimentation.
• 🛠️ Growth cultures are structured to support individual learning and development, ensuring that mistakes are used as opportunities for organization-wide learning.
• 🌍 The interviewee suggests that while genius cultures might have their place in specific historical contexts, growth cultures are more effective in modern, complex environments.

Q & A

What is the fixed mindset?

The fixed mindset is the belief that certain traits such as intelligence, talent, and ability are innate and cannot be changed or developed. It suggests that some people are naturally more talented than others and that success is determined by these inherent qualities.

How does the growth mindset differ from the fixed mindset?

The growth mindset, in contrast to the fixed mindset, posits that anyone can develop their potential over time through dedication, hard work, good strategies, and help from others. It emphasizes the ability to learn and grow from experiences and mistakes, rather than relying solely on innate abilities.

What are the negative impacts of a culture of genius on collaboration and innovation?

A culture of genius can lead to a lack of collaboration and innovation because individuals may become overly concerned with maintaining their status and reputation. This fear of making mistakes, which could be perceived as a lack of innate talent, can hinder progress and make organizations less competitive and more fragile.

How does a growth mindset culture support learning and development?

A growth mindset culture invests in people's learning and development by providing resources, opportunities, and support. It encourages individuals to learn from mistakes and shares learnings throughout the organization. This culture values continuous improvement and resilience, especially in times of uncertainty.

What are the key characteristics of high-performing individuals in a growth mindset culture?

High-performing individuals in a growth mindset culture are those who prefer not to constantly watch their backs for new competitors. They are focused on continuous learning and development, and they are not solely defined by their last performance. This allows them to be more innovative and to contribute to the organization's long-term success.

How does a culture of genius lead to key man risk?

A culture of genius often places excessive reliance on a single individual perceived as a genius. This can lead to key man risk, where the organization becomes vulnerable to the departure or failure of that key individual, as decisions and strategic directions are heavily dependent on them.

What ethical issues can arise in a culture of genius?

In a culture of genius, the pressure to maintain a reputation and prove one's innate abilities can lead to ethical issues such as taking shortcuts, withholding information, and misleading regulators. This environment can foster a risk-taking culture that prioritizes success over ethical considerations.

How does a growth mindset culture approach performance evaluation?

A growth mindset culture approaches performance evaluation rigorously by providing individuals with data on their strengths and weaknesses. It focuses on creating strategies for growth and development rather than simply praising or criticizing based on current abilities. This approach encourages continuous improvement and learning.

Can you name an example of a company with a genuine growth mindset culture?

Microsoft is an example of a company with a growth mindset culture. Under the leadership of Satya Nadella, who was inspired by Carol Dweck's book 'Mindset', Microsoft has built a culture that emphasizes learning and growth, leading to significant strategic shifts such as their investment in cloud computing.

In what ways can a genius culture be beneficial, even during a crisis?

While a growth mindset is generally more resilient and adaptive, a genius culture might be beneficial in situations that require decisive action and rapid decision-making, such as during a crisis. The confidence in a leader's abilities can galvanize quick responses, although it's important to balance this with the collaborative and innovative aspects of a growth mindset for long-term success.

Outlines

00:00

📚 Fixed vs. Growth Mindset

This paragraph introduces the concept of fixed and growth mindsets. The fixed mindset suggests that intelligence, talent, and ability are innate traits that one either possesses or lacks. In contrast, the growth mindset emphasizes that potential can be developed over time through dedication, learning, and persistence. The discussion highlights the drawbacks of a genius culture, which focuses on star performers and can lead to less collaboration and innovation. It also touches on the advantages of a growth culture, where high performers feel less need to guard their status and can focus on learning and development.

05:02

🌟 Examples of Genius and Growth Cultures

The paragraph delves into examples of genius and growth cultures, using Theranos, WeWork, and FTX as cases of the former, and Microsoft and Nvidia as embodiments of the latter. It discusses how Satya Nadella's reading of Carol Dweck's book 'Mindset' led to a transformation at Microsoft, resulting in a focus on cloud computing that revitalized the company. The conversation also explores the idea of whether there are situations, especially in crises, where a genius culture might be beneficial, using Winston Churchill as an example of decisive leadership.

Keywords

💡Fixed Mindset

The fixed mindset is the belief that certain traits, such as intelligence, talent, and ability, are innate and cannot be changed. This concept suggests that some individuals are naturally more talented than others and that these individuals are expected to lead the way in their respective fields. In the context of the video, it is associated with a culture that hinders collaboration and innovation, as individuals may fear making mistakes and losing their perceived status.

💡Growth Mindset

The growth mindset is the belief that anyone can develop their inherent talents and abilities through dedication, hard work, and persistence. It emphasizes the potential for change and growth over time, with the support of resources, strategies, and help from others. This mindset is contrasted with the fixed mindset in the video, highlighting its role in fostering a culture that values learning, adaptability, and resilience, especially in uncertain times.

💡Genius Culture

A genius culture is an environment that idolizes and relies on individuals perceived as geniuses, often leading to a concentration of resources and power in the hands of a few star performers. This culture can breed key man risk and ethical issues, as it places immense pressure on individuals to maintain their status and can lead to a lack of collaboration and innovation.

💡Collaboration

Collaboration refers to the act of working together with others to achieve a common goal. In the context of the video, it is presented as a critical aspect that is often undermined in a genius culture, where individuals may be more focused on their personal achievements and reputation rather than collective success.

💡Innovation

Innovation is the process of introducing new ideas, methods, or products. It is a key driver of progress and growth in any field. The video emphasizes that a fixed mindset can stifle innovation by discouraging risk-taking and creative exploration, as failure is seen as a sign of lacking innate talent or intelligence.

💡Resource Allocation

Resource allocation refers to the process of distributing resources, such as time, money, or personnel, to various tasks or projects. In the context of the video, it is discussed in relation to how a genius culture might concentrate resources on a few star performers, whereas a growth mindset culture would distribute resources more broadly to support the development of all individuals.

💡Performance Evaluation

Performance evaluation is the process of assessing an individual's or a team's performance against set standards or goals. In the video, it is highlighted that growth mindset cultures have more rigorous and data-driven evaluation systems, providing individuals with a clear understanding of their strengths and weaknesses, and supporting their continuous learning and development.

💡Resilience

Resilience refers to the ability of an individual or organization to recover quickly from difficulties or adapt to challenging situations. In the context of the video, growth mindset cultures are described as being more resilient, especially during times of uncertainty and ambiguity, because they encourage learning from mistakes and continuous improvement.

💡Ethical Problems

Ethical problems arise when there are violations of moral principles or standards in conduct or decision-making. In the video, it is suggested that genius cultures may lead to ethical issues because the pressure to maintain a reputation for genius can result in individuals taking shortcuts or engaging in deceptive practices.

💡Rigorous Evaluation

Rigorous evaluation refers to a thorough and exacting process of assessment that is based on empirical evidence and clear criteria. In the context of the video, it is associated with growth mindset cultures, where evaluations are not just about praising or criticizing but about providing accurate feedback to help individuals understand their current capabilities and guide their future development.

💡Agility

Agility refers to the ability to move quickly and easily in response to changes in the environment or circumstances. In the video, it is highlighted that growth mindset cultures tend to be more agile because they rely on data and continuous learning, allowing them to make quick decisions and pivot when necessary.

Highlights

The fixed mindset is the belief that intelligence, talent, and ability are static traits.

In a fixed mindset culture, resources and power are concentrated on star performers.

A growth mindset believes that potential can be developed through dedication, hard work, and learning.

Cultures of genius can hinder collaboration and innovation due to fear of making mistakes.

High performers prefer a growth culture as it doesn't require constant vigilance to maintain status.

Growth cultures invest in learning, growth, and development, providing opportunities for employees.

Growth cultures are more resilient, especially in times of uncertainty and ambiguity.

Genius cultures can lead to key man risk, relying heavily on individuals perceived as geniuses.

Ethical problems can arise in genius cultures due to the pressure to perform and prove oneself.

Growth cultures have rigorous evaluation systems, providing data and feedback for improvement.

Microsoft is an example of a company that successfully transitioned to a growth culture.

Nvidia's investment strategy reflects a growth culture, focusing on learning and improvement.

Growth cultures are more agile, making stronger decisions with less risk due to rapid cycle experiments.

Despite the benefits of growth cultures, there may be situations where a genius culture is necessary, such as wartime leadership.

Growth cultures are transparent and open to data sharing, which aids in learning from mistakes.

The transition to a growth culture at Microsoft was inspired by Satya Nadella's reading of Carol Dweck's book Mindset.

The growth culture at Microsoft led to the development of cloud computing, revitalizing the company.

Research shows that growth cultures among startups lead to more transparency and rapid learning from experiences.

Transcripts

This book now you have coming out tomorrow.

I'm excited to say that's an exciting moment for you.

But before we get into it, give us this mindset sort of overview briefly,

because I'm not sure I was familiar with it before I read your book.

Hmm. The fixed mindset is the idea that you

either have it or you don't. We have some traits intelligence,

talent, ability. Some people just have more of these

things. Other people have less.

And in cultures of genius, these fixed minded cultures of genius, we really

look to those star performers. Those are the individuals on the team

that are expected to lead the way. All the resources and power are kind of

concentrated in this genius model. On the other hand, is the growth

mindset, the mindset that anyone, regardless of their talent, skills and

ability, have potential within them, and they can grow that potential over time

with a lot of resources, persistence, good strategies and help from others.

Well, can you give us some examples of genius versus growth?

Because, for example, I brought up Elon Musk and of course Sam Altman as

examples of the genius culture. But is that the way we should be

thinking about it? Yeah.

What we find in over two decades of research now is that these cultures of

genius actually make America a lot less competitive.

We see problems around collaboration, innovation.

You're unwilling to make mistakes in a culture of genius because if you make a

mistake, it's taken as a sign that maybe you don't have that innate intelligence

ability or talent that is so important to stay at the top of the heap.

People are looking around their shoulder, looking around their back to

be able to maintain their status and their reputation in these companies.

And this makes those organizations quite fragile.

To your point. You know, it's not that you can't be

successful as a culture of genius, but it's almost like you're flying a plane

into headwind. Right?

What we're going to see is that your expenditures are going to be greater.

You will likely be delayed and the trip is going to be a whole lot more

stressful as we see in some of these organizations.

Mary as you say, an essential element of the growth mindset as I is, you can grow,

you can change, but how much can you change?

Certainly there may be some innate tendencies and some people and even some

organizations to be more toward one, an inspector and the other.

Can you really move all the way over? So we do see in the research that

high performers, in fact the highest performers prefer the culture of growth.

Why? Because they're not always having to

watch their back. New star is born every day in these

cultures of genius. And so it keeps people on this

treadmill of having to prove and perform.

You're only as good as your last performance.

And so instead of figuring out how to learn, grow and develop and make the

product or service the focus of my work actually better, I tend to start to look

backwards and make sure that I am able to maintain my status in these

organizations. You're certainly not going to grow in

those kinds of cultures. And to your point about the extent of

growth, you know, that really depends on the culture and the structures within

those organizations to really invest in people's learning growth and

development, giving them those opportunities and really supporting

them, making sure that any mistakes that are made, that that learning is really

mined in that context and spread throughout the whole organization.

And that what that's what makes these cultures of growth so resilient,

especially in times of uncertainty and ambiguity.

Well, when it comes to the genius culture, something I'm wondering about,

I mean, does that just breed key man risk?

If you're so focused on one individual who's seen as this genius?

Absolutely. It's a real problem in the culture of

genius. I mean, we can look at some of these

companies, right? I write about Theranos and WeWork and,

you know, FTX, you can see those geniuses are really at the helm.

And the extent to which organizations rely on those geniuses for figuring out

what risks they're going to take and how the business should be conducted.

We do see a lot of ethical problems in these companies, right, where it's just

so much in this prove and perform environment that people are willing to

take myth, take shortcuts, they're willing to hoard information.

They might mislead regulators. Right.

And so we see this real challenge in the culture of genius.

Mary you mentioned performance, because ultimately when we're at a for profit

corporation, you need performance collectively and individually.

There must be some way of evaluating people.

And not everybody is doing great all the time, right?

How do you have an effective performance evaluation system in a growth culture?

It's a great question. So what we see is that cultures of

growth actually are more rigorous when it comes to their evaluation systems.

We see that they're collecting data. They're giving people their own data and

giving them a sense of what their strengths and their weaknesses are in

the current moment. And then they're figuring out ways to

create structure and strategy around individuals so they can have what it

takes in order to grow, learn and develop.

And so these cultures of growth know that it's important for people to have

an accurate sense of where their skills and abilities are.

They're not going to be sugarcoating it. They're not going to be sort of falsely

praising someone's skills and abilities. And so the experience of people within

these cultures of growth can actually be quite challenging because you're always

expected to be figuring out the next stage for your own learning and growth

over time. And so, Mary, you touched on this a

little bit, but it's easy to think of examples of genius culture.

I mean, just from the corporate side, you think of Theranos, WeWork, etc., but

are there any companies or countries that actually have a genuine growth

culture? I think Microsoft is a very good

example. Everyone likes to give the example of

Microsoft anything for everything. But in this case, it's a real fit

because Satya Nadella read Carol Dweck book Mindset and was inspired to talk

about Microsoft as the first growth minded company.

And he and Kathleen Hogan really worked to build that culture of growth through

everything that they did and from those resource allocations and strategy work

that they did came cloud computing, right.

Which made Microsoft put Microsoft back on the map and it actually made them

much more resilient in times where tech stocks have been in a downward trends.

So we've seen Microsoft. I would say another example right in the

news today is Nvidia. We see in video, you know, looking at

the ecosystem of A.I. today and trying to figure out which

startups should they invest in to really understand and learn how to improve

these AI enabled chips. And so the question is, do you want to

invest in startups that have a culture of genius, or are you going to invest in

startups that have a culture of growth? Our research with over 200 Startup early

Series A, Series B companies is finding that, you know, these cultures of

growth, they have more transparency open to data sharing.

They're going to be learning from mistakes and creating these rapid cycle

experiments to be able to really mine all of their experience for learning.

And if I were Nvidia, I'd be wanting to figure out how to learn the quickest and

the most efficiently, and that's in the culture of growth.

From your experience, are there certain circumstances, particularly in crisis,

when a culture of genius might benefit you?

I just finished Andrew Roberts biography of Winston Churchill.

I'm not sure Winston Churchill in 1939 needed to have a growth culture.

He didn't make some decisions and save his country from the Nazis.

Are there times when you need genius culture, at least for a short period of

time? You know, I think that in especially in

our society, in Western society, we tend to really worship this idea of genius.

And we feel in some ways more confident when someone can project to that genius

mindset. And I would say that that's really it's

the external part that makes people experience confidence in these

organizations and individuals. But when it comes down to it, we

actually see cultures of growth making more decisive decisions and they

actually have more contingency plans. Those decisions tend to be less risky,

less risky because they're relying on data and they

have these rapid cycle experiments that they can engage in to be able to learn

whether the policy or the practice I'm putting in place, the decision I've

made, is it actually showing the outcome that I expect it to show in the short

term? That way they can pivot more quickly.

So they tend to be more agile and they tend to make stronger decisions in the

long term.