Principal-Agent Problem: Act Like an Owner
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- Опубликовано: 15 авг 2024
- If you think and act like an owner, it’s only a matter of time until you become an owner.
• A principal is an owner; an agent is an employee 0:00
• A principal’s incentives are different than an agent’s incentives 1:08
• If you can work on incentives, don't work on anything else 2:15
• When you do deals, it’s better to have the same incentives 3:15
• If you’re an employee, your most important job is to think like a principal 4:05
• Deal with small firms to avoid the principal-agent problem 5:29
Transcript: nav.al/principa...
We must protect this man at all costs
lol
I second that
read more
at all costs
Naval's epic tweetstorm on How To Get Rich is a must watch for everyone! Words cannot describe how powerful and insightful it is. Please, do yourself a favour, and watch it over, and over again!
For people looking to become entrepreneurs, there's far too many scammers online trying to convince people to purchase their e-course for thousands of dollars with the false promise it will get them rich; all while the only ones making money is the scammer. For Naval, he is literally a billionaire sharing his wisdom for free with people because he believes in a more Utopian society where everyone can thrive and succeed. Thanks for this content.
well said. Crying
@kuldeep I am sure
@kuldeep what's your concern
Naval is a billionaire?
He's not a billionaire. He said that the net worth floating on the internet is off by a factor of 10.
“If you think like the owner and you act like the owner it’s only a matter of time before you become the owner”
Naval you really are a breathe of fresh air. The school of life has nothing on you in the realm of philosophy
To address the principal-agent problem, is to deal with the smallest firm possible.
o For example, when hiring a lawyer, or an accountant, to work on deals. The bigger firms are generally worst.
- Yes, they have more experience, they have more people, they have more resources, they have a bigger brand.
- However, the principal and the agent are highly separated.
- Very often the principal will sell and convince you to work with the firm, but all the work will be done by the agent who doesn’t care as much, and often you will get sub-standard service.
- I prefer to work with boutiques. The ideal firm I prefer to work with, is a firm of one. You make other sacrifices and trade-offs in terms of that person’s resources, but you are betting on that person. The accountability is extremely high.
- The best way to operate is to think like an owner, act like an owner, it’s only a matter of time until you become the owner.
Naval is on another level!
As a lawyer, I'm fascinated by the discussion starting at 5:27. A lot of uncommon wisdom there.
It's pretty common actually. Everybody who ever worked for a big company, especially in service delivery, is perfectly aware of that. It's not even difficult to realize the same as an outsider.
Naval can you make an AI version of yourself that can sit on my shoulder
Wow that microphone has gotten so much better.... thanks!
Thanks you so much for all the series!! I have watched all the videos and i found them so valuable that i cant even show enough gratitude. My sincerely greetings from Argentina
feel the same from CHina
This is so true! If you can focus on one thing, focus on incentives!
i found this channel and found the real purpose of my life :) thank you so much Naval !!
This is interesting. Beyond my experience and realm of work.
I tried to mentally apply it to where i worked as a 2iC of sorts for an arts event company with a strong brand, leader brand specifically and burgeoning community.
I really like playing second fiddle as i feel i was best at it n also attracted the criticism to my ears from folks who felt they couldnt publicly talk about the principal and brand.
I could never think like the principal as she was morally corrupt and hence the corruption meant friction and an inept long term vision.
It was an odd place to grow with a ceiling so clearly defined by her presence but not defined by my work conditions and outline.
In the end she burnt me and too many others, and a few of those critics reachdd out and asked to work with me on very rewarding projects - none of which as large, some that used my second fiddle skills, others my high level skills.
I have yet to develop a principal mindstate as i feel it requires more finessse than actualisation through behaviour when your business/realm fundamentally doesnt line up with your methods and morals.
The incentive structure for community work is muddy and laced with faux altruism one must front with..
Id love to talk to Naval about acheiving business success in highly emotional and manipulated spaces like the performing arts.
His general notions apply well to specific problems usually, yet here it feels inept for once.
Im sure specific guidance and anecdotes he could give me would provide that focus of light.
Aligned incentives is such a powerful thing it is crazy that it even can work without it sometimes
Very true
1. (management) Give people a higher purpose, responsibility, and accountability
2. When you hire, hire boutiques (1 man agencies), because of the first point
Pure Gold
A big, deep-felt thank you from my part
A must know principle for founder.
This is gold.
quality as usual!!
wow if u think n act like owner u eventually become an owner
Amazing talk as always
This is incredible
amazing
How old are u naval. U are so wise man.
What does ‘leverage’ even mean?
TD 4YD
Keep digging his material. It's employees, software, money, relationships. Things that multiply your effort further than your immediate actions
steamorfry is that ‘everything’? Why use the word ‘leverage’? Is there an entire book written on ‘leverage’?
TD 4YD
You are dumb as shit
Apt!
a conundrum. which throat to choke.
I'm somehow offended by the clueless lilliputian comments. Then again, compared to naval i'm on the same lot still haha