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How to Survive (and Thrive) in the Age of Abundance (Part 2)

By Walden Siew | WSJ Leadership Institute

Good morning, CFOs. Performance expert Steven Kotler told us about the power of making lists last week. And since readers asked me, here’s his full advice for leaders on AI and the age of abundance…

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Artificial-intelligence-driven demand for chips. ANTHONY WALLACE/AGENCE FRANCE-PRESSE/GETTY IMAGES

I shared last Friday my conversation with Steven Kotler, the author and neuroscientist, whose work I first became interested in through his book “The Art of Impossible” about the science behind peak performance. Some readers asked for his full thoughts, so here’s his advice for leaders managing in this new era or AI, and on maximizing performance and prioritizing.

1️⃣ The first thing is you've got to make a list.

You should do this on any day. Figure out how many things you can be great at in a day. Prioritize the order of your process. Start with your hardest task and work backward. Most leaders don't have a clue about how many things they can do in a day before their skills start to erode.

2️⃣ When you approach a task, complete concentration matters.

First of all, practice distraction management. Turn your damn cell phone off. Cell phones were modelled after slot machines, the single most addictive and distractive technology on Earth. That's what your cellphone is designed to be.

3️⃣ Communication batching is a good idea.

Emails and messages get responded to early in the morning and at the end of the day. That's it.

4️⃣ Focus on the task and not the ego.

If you're interested in flow, focus requires task attention, not ego attention. Focus on the task, not how it’ll impress your boss or your friends. When you engage the ego like that, it blocks flow.

And here's more of our conversation...

Me: To create the right or optimal environment for leaders to think and be efficient, are there certain things a CEO or CFO should be implementing in the office?

Kotler: Meetings are, as you know, one of the largest wastes of time. Most meetings are not about meetings. They're about a whole lot of other things.

Meetings should be about determining who does what by when. That's what you're trying to figure out. All that really matters are the goals and the responsibility. Are you blocked? Let me help unblock you. That's the leader's job in a meeting. Most of the other stuff doesn't matter.

Me: Is there an optimal number of people for a meeting?

Kotler: Yeah, this is interesting. It's just our biology. There's a handful of things we know. Any time that you're in a pack, and this could be dogs or you, but it doesn't matter. You don't want more than about five to eight people in a breakout group. That's a perfect discussion size; above that, it grows unwieldy.

And then we have Dunbar's number at the top, which is the number of relationships you can actually hold in your head, and that number is set. It's about 150. (referring to British anthropologist Robin Dunbar, who suggested that the human brain limits the number of interpersonal connections one can have to about 150 people.)

Me: What advice do you have for CFOs who are looking at these AI tools because they think it is making everyone so much more productive and efficient?

Kotler: There are 12 different ways AI will erode cognition and different aspects of cognition. It's a real serious problem. So CFOs who are bringing AI into a company, if they don't know the psychological and mental side, and the rules of how you work with AI without making you stupid, you've just dumbed down your entire company and you've created a lot of problems. I'll give you a simple one.

So if you spend the morning working with your LLM and then you go to a board meeting where it's a bunch of people talking and there's no LLMs, you are less intrinsically motivated to participate. LLMs can increase motivation, while you’re working with them, but afterward, the analog world is a pale comparison. The brain gets bored with normal reality. Motivation plummets, attention plummets and fragments. These are real problems.

Readers, what do you think of Kotler’s advice? Please hit reply, as I’d love to read your feedback. Meanwhile, I’m reading his latest book “We Are as Gods: A Survival Guide for the Age of Abundance,” which he wrote with Peter H. Diamandis. What else would you recommend as a good summer read?

 
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The Week Ahead

Monday

Earnings: Hewlett Packard Enterprise

The Institute for Supply Management releases its Manufacturing Purchasing Managers’ Index for May.

The Census Bureau reports construction spending data for April.

Tuesday

Earnings: Dollar General, Palo Alto Networks, and Ulta Beauty

The Bureau of Labor Statistics releases the Job Openings and Labor Turnover Survey.

Wednesday

Earnings: Broadcom, CrowdStrike Holdings, Five Below and Macy’s

The Institute for Supply Management releases its Services Purchasing Managers’ Index for May.

The Federal Reserve releases the beige book for the fourth of eight times this year.

Thursday

Earnings: Brown-Forman, Ciena, Cooper Cos., DocuSign, Lululemon Athletica, Planet Labs and Samsara

Friday

The Bureau of Labor Statistics releases the jobs report for May.

 
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What Else Matters to CFOs

Jerome Powell accepted an award Sunday. BRIAN SNYDER/REUTERS

In a speech that dwelled on lofty civic themes, former Federal Reserve Chair Jerome Powell grew conspicuously specific about one thing on Sunday night: that the central bank cannot survive if any administration finds a way to remove its officials over policy disagreements.

My colleague Nick Timiraos reports that Powell, now a Fed governor, accepted an award recognizing political courage from the family of former President John F. Kennedy at a ceremony in Boston. Speaking in generalities about institutions, the rule of law and the inheritance of American democracy, he named no president and aired no specific grievance.

But on the structure that keeps monetary policy out of a president’s hands, he was exact. Powell highlighted the legal protections against removing Fed officials and underscored that the executive branch plays “no role in the selection or oversight of the 12 reserve bank presidents” who, with the presidentially appointed governors, vote on interest rates.

Key quote: “If any administration finds a way to remove Fed officials over policy differences, then future administrations will do so as well,” Powell said. The Fed’s credibility, built over decades, was “a priceless asset” he and his colleagues had “a duty to safeguard.”

  • Kevin Warsh Wants the Fed to Think About Inflation Differently
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📰 Other headlines

  • Exclusive: No Raise, No Promotion: 1 in 4 White-Collar Workers Are Stalling Out
  • This $50,000 Safety Fix Is Dividing the Aviation Industry and Washington
  • Berkshire Hathaway to Buy Home Builder Taylor Morrison for $6.8 Billion
  • UAW to Strike at Key General Motors Truck Supplier Plant
  • Why It Matters if OpenAI or Anthropic Wins the IPO Race
  • Rekindled IPOs Fuel Private Equity Hopes for Exit Revival
  • The Hedge Fund Veteran Trying to Make His Past Self Obsolete With AI
  • Taiwan’s Opposition Leader Comes to U.S. With a Message Straight Out of Beijing
 

Quotable

“The AI train is moving forward….You don’t necessarily want to try to stop it or sit on the sidelines.”

—Joe Tanious, chief investment strategist for North America at Northern Trust Asset Management
 

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About Us

The Wall Street Journal's CFO Journal offers corporate leaders and professionals CFO analysis, advice and commentary to make informed decisions. We cover topics including corporate tax, accounting, regulation, capital markets, management and strategy.

Follow us on X @WSJCFO. The WSJ CFO Journal Team comprises reporters Kristin Broughton, Mark Maurer and Jennifer Williams, and Bureau Chief Walden Siew.

You can reach us by replying to any newsletter, or email Walden at walden.siew@wsj.com.

 
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