In short
How AI may “deadend” curiosity by making it too easy to jump to fast answers, and what leaders should do instead: practice curiosity, run small experiments, and make courageous, judgment-based decisions with clarity, context, connection, and courage.
Guests
Michael Bungay Stanier (MBS), leadership/coaching author; re-released The Coaching Habit (10-year version) and emphasizes “stay curious longer.” Hosts/co-hosts include Jessica Neal and guest co-host Peter Clark (mentioned as temporary).
Key claims
AI accelerates into half-decent answers, reducing curiosity and independent thinking. Curiosity is a learnable discipline (question-asking, tolerating ambiguity). Leaders must provide clarity over certainty, context over content, connection over cocooning, and courage over collusion. Data is not neutral; it can be used defensively to justify preferred decisions.
Notable examples
Netflix “bets” culture (e.g., House of Cards licensing/content strategy decision); SpaceX as a contrarian bet; venture/funding “failure is an orphan” dynamics; “strategy question” (what must we say no to).
Written by AI. May contain mistakes. Listen to the episode to check what was said.
Chapters
Tap a time to open that second in VOCuriosity Over Outcome
0:00 to 0:13
Explore how curiosity informs decision-making through data.
“You have to stop caring so much about the outcome other than to go, I'm really curious as to what the data tells us so that we can then make the next decision about the next small experiment around that.”
Reframing Failure
0:13 to 0:24
Discuss the importance of accepting failure as part of experimentation.
“And I think reframing it as we're just collecting interesting data here.”
Introducing Michael Bungay Stanier
1:02 to 2:32
Hosts welcome author Michael Bungay Stanier and discuss his work.
“Welcome to another episode of TruthWorks.”
The Aesthetic Value of Books
2:32 to 4:14
Michael discusses the importance of both form and content in books.
“I already know this is going to be a great conversation.”
Curiosity and AI
4:14 to 5:10
Conversation on whether AI is killing or fostering curiosity.
“And then even on the side of the book, on the pages, there's words on all three sides of that.”
The Process of Curiosity
5:10 to 8:04
Delve into how pacing affects curiosity and the challenge of control.
“which was, do you think AI is killing curiosity or do you think it's fostering more curiosity?”
Curiosity in the Workplace
8:04 to 9:50
Discussion on how organizations incentivize or stifle curiosity.
“It makes it feel like you have less control over what's happening.”
Education and Curiosity
9:50 to 13:00
Exploring the impacts of education systems on curiosity development.
“You know, it wasn't like one thing, they were just curious about everything.”
Evolving Leadership in a Tech World
13:00 to 14:00
Discussion on how leadership qualities are changing with AI.
“Or if you are too curious, you're sort of relegated to the special classes, right?”
The Evolution of Leadership
14:00 to 14:50
Explore the changing landscape of leadership and the importance of judgment.
“And it was a lot of that functional expertise, operational expertise that was valued.”
Show all 22 chapters
Key Attributes of Effective Leaders
14:50 to 19:32
Learn about the essential skills leaders need in the age of AI, including clarity, context, and connection.
“And I think that that skill and that attribute, whatever you want to call it, is going to be so valuable for organizations moving forward.”
Coaching Leaders in the AI Era
19:32 to 22:19
Understand how leaders can adapt and support their teams amidst AI advancements.
“So maybe it's curiosity plus judgment instead of taste and judgment.”
The Challenge of Overwhelm in Leadership
22:19 to 24:28
Discuss the pitfalls of information overload and the importance of strategic decision-making.
“I think they're still operating in that zone.”
Navigating Uncertainty and Making Decisions
24:28 to 28:00
Explore how leaders can build the capacity to make decisions in uncertain environments.
“I mean, how would you help a leader or a manager or an individual contributor lead in this time of AI?”
Decisions in Uncertainty
28:00 to 30:28
Learn how to navigate ambiguous decisions in a business setting.
“And the decisions that people balk on and never act on, they're not the obvious easy ones.”
The Role of Culture in Decision-Making
30:28 to 34:59
Understand how company culture influences decision-making and risk-taking.
“But there were also examples where, you know, owners of decisions didn't make bad decisions, right?”
Small Experiments as Learning Tools
34:59 to 37:52
Explore the importance of small experiments in organizational learning.
“But the connection you're making for me, Pete and Jessica, is that there's something around what does the culture suggest I make a decision?”
Courage and Innovation in Business
37:52 to 42:00
Discover how courage impacts innovation and decision-making in companies.
“And I think the companies that are on sort of the cutting edge of that, that have maybe a step ahead of everybody else, they're going to continue to thrive.”
The Courage to Innovate
42:00 to 44:16
Learn why courage and ownership are essential for innovation in business.
“And I think that seems to To me, I guess I would distill that down.”
Hiring for Potential
44:16 to 46:41
Discover the importance of taking risks when hiring talent from unconventional backgrounds.
“It's, you know, fail fast, but fix it even faster.”
The Role of Coaching in Leadership
46:41 to 48:54
Understand how effective coaching helps leaders inspire and support their teams.
“to certainty and decision making and pace and it gives us less on how much am i willing to lose How much can I lose?”
Encouraging Others as a Leader
48:54 to 50:08
Learn how leaders can make a significant impact by making people feel seen and heard.
“So in the work you're doing now as you're listening to this podcast, yeah, you've got to get the work done.”
Transcript
Automatic transcript. May contain errors.0:00You have to stop caring so much about the outcome other than to go, I'm really curious as to what the data tells us so that we can then make the next decision about the next small experiment around that. For a culture to accept small experiments, they have to accept what looks like failure. And I think reframing it as we're just collecting interesting data here.
0:24What would happen if we just told the truth? Welcome to TruthWorks, where we dig into the nitty-gritty of leadership and work. And what needs to change. I'm Jessica Neal. And I'm Patti McCord. Our journey together started in HR, but trust us, it's evolved into something wild, honest, and, well, a bit rebellious. So throw out the handbook. We're here to redefine rules to work for us, not against us. Let's dive into another episode.
1:02Hi, everyone. Welcome to another episode of TruthWorks. I'm Jessica Neal, your host, and I'm with my co-host, Peter Clark. Hi, Pete.
1:11Peter Clarke:Hey, how are you? What's up? Still temporary, still guest co-host. I don't know when we'll take the training wheels off. No, no, no. It's a permanent thing in my mind. I'm here to make an intervention, Pete. I'm like, at the end of this, I'm going to hold up a number and kind of give you a score out of 10. And it's like, I'm role modeling talent management for you. It's just like, this is a live or die situation, man. Yeah, I know. Well, what I did tell Pete is that we would do like an American Idol of it all and see if the listeners vote him on or off. But anyways, you all, the listeners, you just heard our guest today.
1:49He just chimed in. He's been on the show before. He's, I don't know. He's on my favorite person list. Many of you have read his books and he just released or re-released, I guess you call it, the 10-year version of The Coaching Habit, which is an excellent book. And also this book, I got it. And I just have to say it is, I don't know, it's one of the prettiest books I've ever seen. And it's just done so well and there's new stuff in it. So it's just not like the old version, but prettier. It's like got even better content. And I don't know. I'm just so excited to have Michael on the show. Michael, welcome back.
2:33Everybody knows you also as MBS. So welcome back to the show. We're so happy to have you. And congrats. Thank you. Look, it's lovely to be back. I already know this is going to be a great conversation. I can't wait to dive in. Yeah, me too. So tell us about what's been going on with you recently, because I haven't seen you in a, I don't know, a few months. How have you been? You did the re-release of The Coaching Habit. I have. So that was a big thing. Every book turns 10 at some stage, but most books, it's not worth celebrating turning 10 because most books have kind of vanished without trace, which is true with the majority of the books I've written as well.
3:10They've come and they had their moment and they've kind of faded a bit. But The Coaching Habit has a life of its own. And it continues to be a really big seller and a popular book, particularly for kind of regular people who are trying to unweird the whole idea of coaching so they can bring out the best in the people that they lead and they manage and they influence. So yeah, we sweated over that. And I really wanted to create a book that would be an artifact worth holding on to because it's AI. I'm not sure if everybody's caught up with that, but AI is happening. Never heard of it. I know. Well, you should keep an eye out for it because I think it's going to have, I think it's going to make a difference.
3:49Yeah. But it means actually that for people like me who write books saying, hey, look, here's how you can do something. Here's a new way of thinking about it. Actually, Claude or GPT or whoever your AI agent of choice is, it kind of has all that knowledge because, you know, they stole it from us and me. So it means that if you write a book, it's not enough just to have great content. It has to be worth keeping on somebody's shelf. and part of that is it needs to have an aesthetic value as well to it so you're right I tried to create a book that was helpful and gorgeous it and it and it is like even if you guys get this book which you should on the inside like it's just I don't I don't know if people know this term breathability but the book is just very breathable and it's you know it's easy on the eye and there's like these illustrations and pops and it's just beautiful.
4:43And the colors are beautiful. And then even on the side of the book, on the pages, there's words on all three sides of that. Yeah, stay curious longer, which is my definition of coaching, which is like, it's not fancy. It's like, can you just stay curious a little bit longer? Because most people are losing that curiosity muscle. And I think more than ever, it's important to kind of stay curious. I agree. And that kind of leads me to something I wanted to talk to you about, which was, do you think AI is killing curiosity or do you think it's fostering more curiosity? Well, I mean, the answer is almost certainly both, but I think the bigger impact it's having is deadening curiosity because it's just so easy to accelerate into a half-decent answer most of the time.
5:39And we get seduced by how fast we can create content, how fast we can kind of get moving on stuff, how fast we can do stuff. And we forget that curiosity, not just about the challenge, but about the context in which we're working with and about the people that we're working with that actually creates the conditions and the connections for success. So yeah, I am pretty worried about AI. I see it in myself. I mean, it's not like I'm some sort of curiosity black belt. I'm like constantly being seduced by just how good AI is in stopping me thinking for myself. I know. Well, I was thinking about myself when I was thinking about asking you this question.
6:22And I was like, am I more curious or I'm less curious? I don't know. I feel like sometimes that's true. You're seduced and it's so easy to get to information and ideas and maybe to your point, a halfway decent answer. But I also like, I like the way that it helps me think a little deeper because I think it's also, I don't know if you agree, but I think it's also how you use it. And, you know, I'm always like, what? Here's all the questions I have. What's the, you know, one question I'm not asking? And it asks this question. I'm like, oh, I didn't think about that. And then it prompts me to go further sometimes.
7:07So for me, I was like, well, I don't know if it's killing it. Yeah. Maybe I'm a curious person.
7:13Peter Clarke:Do you think society actually, or the world we live in rewards curiosity i guess that's one thing i wonder too right it's you know we see it from the venture side of things right we're supposed to be investing in innovative cutting edge curious people i think in general it doesn't seem like curiosity is rewarded all that much i mean it rewards i mean it likes it in theory there aren't many people who come out and go i'm making a stand against curiosity unless you're a cat because allegedly you know curiosity kills cats. But for everybody else, it's like, no, I'm kind of pro-curiosity. And people like the outcomes of curiosity, which is like, I like that we got here because this is a result.
7:54And I'm going to guess there was curiosity involved in that. But people are less keen about the process of curiosity because for a bunch of different reasons. It's messier. It's slower. It makes it feel like you have less control over what's happening. I mean, just at a very basic human level, the difference between you asking somebody a question and then being quiet and waiting for the answer, which is one of the core mechanics of coaching, and just telling somebody what to do, even if it's not very good advice, and even if you're solving the wrong problem, which happens a lot, it feels better when you're telling somebody what to do because you're like, I'm still in control.
8:37I've still got some value to add. I'm still kind of smarter than they are. I've still got some authority. I'm keeping things moving. I've got some pace going. Whereas when you ask a question, you're like, was that a good question? Did they understand the question? What if they come up with a bonkers answer? What do I do with that? What if they come up with an answer? It's just good, but I didn't think of it myself. What do I do with that? There's all sorts of ways that you step into a place of less control, more ambiguity, more uncertainty when you ask a question, which is, you know, in some ways the essence of what curiosity is.
9:10So I don't think people love the process, even though they like it in theory and they like the outcome of curiosity. Yeah. Yeah. Good way to put it. I think I would describe myself as a naturally curious person. And I think some people are more curious than others. And it was actually something that when at Netflix, we looked for as a quality. We wanted people that were really curious and we interviewed for it. And, you know, a lot of it was the questions that they asked us, right, determined how curious they were, right? And if, you know, you were having a conversation and then you got to a certain point and the person was like, oh, but what about, and then did you consider, and then, you know, and that, and those were the people that we were like, oh, yeah, these are the people that we want because they were just curious about everything.
10:05You know, it wasn't like one thing, they were just curious about everything. Do you think it's a skill that can be learned or is it just like an innate quality that some people have and some don't? Well, I think it's absolutely a discipline and a habit that you can practice. And you learn how to ask a question. You collect good questions. You learn how to take a sideways jaunt into something. All of that is definitely learnable. I do think some people are kind of more wired than others. I quite like ambiguity. My wife doesn't. You know, when we're – it really shows up when we're choosing where to go out for dinner, if we're going out for dinner.
10:48I will go, hey, new restaurant could be cool. Why don't we give it a shot? I'm always up for the unknown. She's like, oh, we could go to a restaurant where we know we're going to have a really good meal. Why don't we go there? And I'm like, yeah, but – and she's more wired for certainty and I'm more wired for exploration.
11:10Didn't you guys decide where you were going to move, like on a napkin or something, if I remember correctly? Yeah, we did actually. Beer coasters. We were living in Boston. We knew we wanted to live in Boston. We went and had beers. And after two beers, we each wrote down the name of three cities we thought we might move to. On the count of three, we flipped them over, and Toronto made both the beer coasters. So that's why I've ended up living in Toronto. So you're right. She has moments. But you can guess who came up with that process. Was it me, the curious step into the unknown? Or was it my wife who was like, I hate this process?
11:44So that is absolutely true. Yeah. And Jessica, look. Yeah, I remember that. I am old and I've been practicing curiosity for the 30 some years of my career. And I feel it being chipped away. but I've got a lifetime of practice at staying curious and I'm not casting any aspersions on your age but I suspect you're kind of you've also walked a path where you've been practicing that for a while I had dinner just the other night with a teacher of my a friend who teaches English and she's like I can't get people to to read a book I can't get them to think about a book it's a real challenge to kind of embed that curiosity in at an early age and to Pete's point when an organization values speed and certainty, there's not a great deal of motivation to maintain the practice of curiosity.
12:38So yeah, I think it's under threat. Yeah.
12:41Peter Clarke:I think, I mean, if you have kids, I would say you can look and go, we're all probably born with some innate sense of curiosity, some far more than others. But I would say maybe it's Western civilization and or the United States In particular, I think the education system tends to drive that out of you. Or if you are too curious, you're sort of relegated to the special classes, right? Like, no, you need to go over there because you're too hard to manage. I think that's right. I mean, and now we get into a whole critique of capitalism because, you know, we're still working on an 18th century education system that was designed to have people behave well in the factories and the settings they go into.
13:21So there's a lot of that for sure. Yeah. Well, let's talk about this in the capacity of leadership because it's something that I've been thinking about a lot. I know it's something, Michael, that you've been thinking about a lot. And I think the construct of what makes a great leader is dramatically going to change in this new world with AI. Because, you know, we very much for a long time valued managers that had large teams, big budgets, you know, could operationalize, could, you know, hire and fire, you know. And it was a lot of that functional expertise, operational expertise that was valued.
14:10And now that's going away. Lots of people can get, yeah, what do you do, right? And so I've been thinking a lot about this idea of what makes a great leader. And not to say that we were ahead of the times at Netflix. Go on, say it. You're ahead of the times. Well, we were and we still are. But I mean, for us, this idea that I've been thinking about was very true when we first began and started thinking about our culture and started thinking about leadership and what would scale in the company. And it was this idea of judgment and decision making. And I think that that skill and that attribute, whatever you want to call it, is going to be so valuable for organizations moving forward.
15:04It's not going to be this manager leader that can get 500 people to do one thing. It's someone that can make great decisions in a world where there is an abundance of information and ideas and analysis. And so but but they need to make really good decisions really quickly. And they also need to pivot really quickly when when those aren't going well. And anyways, we always talked about that at Netflix. And to be honest, most of the leaders that didn't scale at Netflix, they didn't have great judgment. Yeah. It's tricky, isn't it? It's a little bit like what people are banging on about around, oh, we need to maintain taste.
15:51It's taste and judgment feel like they're kind of connected. and honestly it puts my back up a little bit because it makes it sound like taste and judgment are this kind of context-free attributes that just float around instead of actually being very influenced by the context you're in and the expectation of the culture and and all of that i mean i can look at i look at some people and i go you have terrible terrible taste. I've seen how you decorate your house and it's hideous. There's way too much leopard skin. There's too much gold leaf. There's too much, I don't know, chandeliers. And they would come into my house or they just look at my podcast and I've got a big black piece of folk art behind me, it's a big black bird.
16:44And they're like, what the hell is the symbol of death doing looming looming over your shoulder. And why do you have your hair like that? And what's with the loud shirt that you're wearing, Michael? They would react to my taste in a very different way. And actually, often, good judgment, good taste needs to be counter-cultural, counter-intuitive rather than just playing along. So when I've been thinking about what leadership requires in the time of AI, I've got four choices that you make as a leader. So let me throw them on the table and we can see if there's anything interesting here. I think it's connected to decision-making.
17:23I think you need to be able to provide clarity over certainty. Clarity over certainty. I think AI loves certainty. It's always pushing to say, hey, this is the answer this is the thing this is what matters whereas i think what a good leader does driven by curiosity is kind of clarity around what matters clarity about what's important not less about an answer but it's more about a direction and about a kind of certainty that we've we've found something so clarity over certainty i think there's context over content we are we are driven by content, by the output, by the stuff, by the doing things.
18:04And so often we lose the situation, the picture around that. And I think what great leaders do is they can paint a picture, put a decision, put an action, put an output into context rather than losing the context. I think a great leader helps provide connection over cocooning. Because I think one of the unintended consequences of AI is that we are working even more by ourselves than ever before. Because it's like, why would I need to talk to anybody? I've just got me and an agent or seven, and it's just me and a screen working now. So connection over cocooning. And then finally, I think there's something about courage over collusion.
18:50Collusion is a kind of a big word, But the pressure is in organizations to behave and to follow along, to do the obvious, to do the expected. That just creates less ripples. And I think great leaders are often about how do I create courage in the decisions I make, in the stance we take, in the choices we have. And I think those three things, so context, connection, courage, and I've forgotten the second one. Clarity. Clarity.
19:20Peter Clarke:Thank you. I think those are all things. They're all driven by curiosity, but they're all things, if you're more on that side, actually allows you to be making better decisions. So maybe it's curiosity plus judgment instead of taste and judgment. Right. That's interesting. Yeah. Yeah. Yeah. Yeah. Well, what do you, I mean, we can kind of pick some of these because I think that as you were describing these, are they all Cs? They're all Cs as you were describing all these Cs. There's a lot of Cs. It's like more than the seven Cs, it's the eight Cs, I know. The eight Cs, yeah. I was thinking a lot about, you know, did we do those things at Netflix?
20:06And those were a lot of the things that we did. And, you know, we talked about things like context, not control. And we operated in a world of context. And, you know, we had this, you know, freedom and responsibility culture. But we wouldn't have been able to have that culture if people didn't have curiosity, you know, clarity, context, courage, all of those things. so so how would you jessica how would you support a leader now knowing that the the netflix that you were so uh integrated integrated into is different in this because this wave of ai-ness has kind of shook everybody you know if you were coaching or supporting a leader now how would you help them err on this side rather than that side of those of those four pairs of c's well i think it's it's an interesting question.
21:01I actually wish I had the opportunity to do it. Jessica is available for hire. You probably can't afford her, but she's available. Yeah. No, I can't do it. I don't even know if I can do it again. But anyways, I think leaders really need to get out of the trenches, get out of the day-to-day, lift their heads up, and start thinking a little differently than they've been thinking, which is they've been thinking functionally. They've been thinking, you know, about operations and being excellent in that way, but they haven't been thinking about, you know, am I making the best decisions? Does my team have the context to succeed when information is abundant?
21:54What information is important? How are we going to make great decisions? How are we going to pivot? How am I going to make sure that the people on my team also have judgment and curiosity? Because that's going to be an important skill, not just for a leader, but for the people on your team. And I think that most leaders are still sort of in the information is power. I have the information. I think they're still operating in that zone. And their job is to give certain people the information when needed. But now everybody has all the information. Exactly. And all the answers. Yeah. You want to get steps, everybody can do it.
22:41Yeah. So I think I would be really pushing people on their ability to zoom out, really understand what is most important, what's imperative that we have to do. I think really great, as I'm talking, I know I'm blabbing a lot, but I think really, really great leaders are often so good at describing the trade-offs. This is what we're going to do right now, and we're not going to do this right now. Because there's so much everybody could do, right? Right. And, but, but it's, it's to really be able to have the ability and space to come up with what those trade-offs should be. Right. And when you're in the, in the trenches and the day-to-day doing, you aren't able to, to see the forest through the trees, if you will.
23:39It's one of the questions in the coaching habit book. It's actually called the strategy question, which is if we're going to say yes to this, what must we say no to? And it just surfaces the opportunity costs. And also your yes is meaningless unless you say no to this, because we're already overwhelmed with yeses. So unless we subtract, unless we remove, and Leidy Klotz's book, Subtract, is so good on this. Yes, I was just going to mention Leidy. Yeah. Yeah. Yeah. And it's such a good reminder because, I mean, I think, you know, we always add. We never subtract. It's like, oh, we have a new problem at work.
24:19Okay, let's add 10 more people. And who's using AI at the moment to subtract stuff, to reduce stuff? Nobody ever is like, I'm pumping out more work than ever. Pete, where would you go with this? I mean, how would you help a leader or a manager or an individual contributor lead in this time of AI?
24:39Peter Clarke:Fun. Actually, I wrote down your eight Cs as you were talking, and I keep looking at them and sort of breaking them into you've got the left side and the right side. And there's probably some left brain, right brain scenario here, but you just look at like the go down clarity, context, connection and courage. Right. I think they all require each other. Like, you know, and we work with a lot of very early stage startups and founders who, you know, ultimately have clarity of vision around the original product. Right. So then when I fit it into the things around team building, right, the clarity piece is one of the biggest challenges because it's like, well, what do I really?
25:17Peter Clarke:need you know there's actually they'd say yes and say no thing too because you know most entrepreneurs and ceos tend to lump as much as possible into something right like i need this thing and oh by the way they will also do these other 10 things right but wait there's more yeah the untenable job spec right well then the context so what are we what are we trying to what problem are we trying to solve yeah right and then the connection piece around okay if i've got you know my clarity and kind of the context i'm going to ideally talk to several other people that are mentors or advisors of mine to sort of understand you know how am i thinking about this and then all of those things when you can get to the point of you know finally having the courage to act right but mostly that's like the courage to act i see tends to be missed a lot because that's great yeah it's amazing and it's all about people right we we're we work with these incredible entrepreneurs who have built something amazing right like invented something or come up with something that no one else thought of and then when it comes to hiring people to the team all of that sort of frontier like innovative thinking it just goes out the window and it's like well what did that other company do right and it's like well what does it matter so like because then I think you flip over to the left side, right?
26:42Peter Clarke:Where it's like, that feels very defensible where I've got certainty, right? I've got data in terms of that. I use content in our world as data, like overwhelm me with data so that I can ultimately not make a decision, right? Because I've, you know, I look at what I have, I have all this information and then I basically isolate myself and my thinking or, you know, the cocooning piece And then the collusion to me is groupthink, right? It's like, well, this is what I think people will think is the right answer. And like it never, I don't know, that never works out. The advice we give and I'm giving bad advice, I would say lately, because my advice when people are saying, what are people doing, you know, organizational and it's like, but do what works, right?
Read the full transcript
27:26Peter Clarke:Like you're in the unprecedented times of building something that's scaling, growing, never before seen. so don't default to what people have done before because i don't think that's going to work so i guess that's the answer to the question what are we doing we're taking big swings i guess part of the connection i'm seeing between the way you're talking both is it's like how do you have the courage to make a decision and not just follow the the obvious path because the obvious path is now even more well trod than ever because ai has suggested it to everybody but what that means and And the decisions that people balk on and never act on, they're not the obvious easy ones.
28:09They're the ones where there's ambiguity and there's uncertainty. And there's a substantial chance that you'll make a decision that could be fine, but the outcome is not great. so I'm wondering how you help people build the capacity to make decisions when not only do they not have enough data not only do they not really know perhaps exactly what the challenge is but they definitely can't guarantee a good outcome as part of that yeah you know I as you were talking I was thinking about the house of cards at Netflix right and I mean this was a big decision but we call them bets yes we call them bets it was a hundred million dollar at the time a hundred million dollar which was a very big deal for the company we you know it was that was a lot of money and it was to bet it on you know two seasons of the house of cards and You know, it wasn't Reed's decision and it was our chief content officer.
29:17He's now a co-CEO today, Ted. And he had a lot of information. He had, you know, he was in the business of content and studios and licensing. And licensing was increasingly getting harder and more expensive because, you know, we had sort of shown everyone that streaming was a possibility. And, you know, now all the studios are doing it. And so it became apparent that creating our own content would be a strategic advantage. We wouldn't have to be licensing content from all these other studios. And so long story short, you know, Ted at the time, did he know that that would work out? No. Right. But did he have a lot of information about what was going on in the world and what the conditions were?
30:09And there was an opportunity and we had to quickly decide whether we were going to do it or not. And luckily for him, it was a great decision that set us off on the course of becoming the largest entertainment company in the world. And, you know, but I think of, you know, that's an example of a very good one. But there were also examples where, you know, owners of decisions didn't make bad decisions, right? You know, let's say marketing, for example, we did a big marketing campaign, we spent a lot of money, it didn't net the results we wanted it to net. However, it wasn't a bad decision. Right.
30:51It just, you know, but I think when you're thinking about these things as not life or death, like good or bad, right? And you're thinking about them as bets. And there's, you know, every time you make a bet, there's a tradeoff to have. And it's like, okay, you know, you're going to make the best bet possible with the information that you have, whether it's you're betting on a horse or you're making a decision at work. Yeah. And that bet is going to pay off, and sometimes it's not going to pay off. But then it's the courage to do that. I like what Pete was saying. Sorry, Jessica. I didn't mean to step over you.
31:31But I mean, I like what Pete was saying around, because you can tell that story about Ted as a good bet with a good outcome. And you're right to separate out the quality of the decision with what happens, because they're separate. You can make great decisions that have bad outcomes. or underwhelming outcomes, you can make bad decisions that get lucky and get a good outcome. But here's the thing I bet was true. I bet Ted had data that he could have used either way for that decision. I bet you he could have pulled together the data to say, this is why we shouldn't do this. And I bet you, and as he did, he pulled together some data to say, this is why we should do it.
32:09So partly I'm really interested and I'm really kind of building off what Pete was saying earlier on, which is how we often phrase data as neutral, but I think it's actually political. I think you're like, I'm looking for the information that supports the decision that I think I want to be making. And so I'm going to just shift through the data to find that. Just like I've used Google to guarantee or give me permission to drink red wine and eat chocolate as health. These are healthy choices I'm making. I've seen the research. They are. It's good for you. Do you have any insight on how to get rigorous with or how to, I'm not sure, how to use data in a way that you stop pretending that it's this neutral force, but actually a political force?
33:00Pete? I don't know if it's a slippery one.
33:03Peter Clarke:I mean, the simplicity, as it seems, is just embrace that right and maybe this is yeah sorry i mean i didn't have any of these thoughts before today um but i'm just thinking about um you think with jessica about what netflix what netflix culture seemed to do you know with these decisions good or bad was they rewarded they did reward curiosity right because you can make the decision people weren't afraid I see the data being used in a defensive mode when people are afraid, well, okay, if I do this, but I also will use, I'll have data that says I can do it, and then I will have data that if it doesn't work out, I can point to and say, well, this is why I did it, right?
33:50Peter Clarke:These other companies did it, or this seemed logical at the time, and almost this defensive decision. And, you know, when we generally see that a lot in the venture industry, there's a default. Again, you take these wildly creative, innovative entrepreneurs, and then the more rounds of funding they raise, oftentimes the more people that are involved, giving them all kinds of input. You know, suddenly what they're doing is making they're building up a case around a decision to defend it if it doesn't work out. Right. If it works out, everybody takes credit for it. You know, as they say, failure is an orphan and success has many fathers.
34:25Peter Clarke:or I think I did that backwards, but never more true, I think, than in the venture capital industry. But yeah, you think about, let's just look at, I'll say it because, you know, of course we have to talk about SpaceX, but 20 years ago, right? Like that was the stupidest idea ever. Who's going to build rockets, you know? And, you know, who apparently didn't care that people thought it was a stupid idea. Yeah. It's the newest trillionaire in the world. Yeah, I've heard Musk. However that works, but yeah. The newest and the only trillionaire. And I heard Mas say he thought he gave SpaceX less than a 10 % chance of working.
34:59But the connection you're making for me, Pete and Jessica, is that there's something around what does the culture suggest I make a decision? What does the culture direct me to do in terms of making a decision? What are the values of the culture? Because my guess is, Jessica, at Netflix, there's a cultural thing around be courageous, be on the edge, take the first step. And that must have influenced Ted's decision to go, look, I could go either way on this, but the culture is nudging me to make a certain type of decision. Yeah, absolutely. And I think as we were talking, one of the things that I keep thinking about that's going to be important for organizations is just that.
35:42It's that culture of risk, decision-making, accountability. Do you allow people the space and the freedom to take these bets and have the courage to do it, but also a supportive environment that doesn't penalize them? for making, you know, because again, you know, that we had lots of great decisions that we made, but we had probably even more bad decisions that we made than the good ones, right? But I think, you know, we had a culture that allowed people to learn, right? And, you know, when you're doing all the things that we're all doing in life, especially when it comes to AI, literally everybody's making it up as we go along.
36:36Like nobody's done any of this stuff. And so we are going to be learning. And as long as we're making decisions that are not catastrophic to the mission, right? And the business, but are, you know, these mistakes are enhancing, you know, that learning and that journey, allowing people to feel good about that and not to feel like a failure. And I think a lot of companies have a current system where taking a risk is not rewarded. Taking a risk is bad. And then it's not celebrated when there is a failure, right? And failures to us weren't failures. We didn't talk about them as failures. We talked about it as learning.
37:24And it went back into the conversation of trade-offs. Okay, well, now that I know this, here are the trade-offs that I'm going to make next time. These are the things I'm not going to do. And these are the things that I'm going to double down on. Because I know that now from going through this. So I do think that culture, and I'll even say, because I think culture is just overused, but the way that you operate as a company and the way that you make decisions, the way that you distill down information and clarity. and that is going to be so important. And I think the companies that are on sort of the cutting edge of that, that have maybe a step ahead of everybody else, they're going to continue to thrive.
38:10And the companies that are still in this like, don't move anybody and we can't take any risk and risk is bad. I think that those companies are going to not be doing as well in the years to come. So Jessica, you've been on the Change Signal podcast that I host, and it's about modern change management, helping people figure out how do I lead change in these busy, confusing, full-on times. And one of the things that I've heard many times from guests is the importance of small experiments. It's this idea that you've got to accept that your plan is ridiculous. Your strategy is almost certainly out of date immediately.
38:48we're not striding confidently along a path into a future that we all understand we are groping our way towards a destination that we've named which we hope and we think is the destination but this too may change and yes one of the things that that's become really clear about the slipperiness of the idea of a small experiment because i'm sure people listening have heard this idea before is we can run these small projects these small things but we still often get really attached to the outcome of them as the outcome matters as opposed to I am collecting data. The point of experiments is what's the data from this?
39:26And you have to care deeply about the process. Is this the right experiment? Are we running it well? Are we being smart? Is this the best choice we could be making? And you have to stop caring so much about the outcome other than to go, I'm really curious as to what the data tells us so that we can then make the next decision about the next small experiment around that. But for a culture to accept small experiments, they have to accept what looks like failure. And I think reframing it as we're just collecting interesting data here. Yeah. And that's kind of how we thought about it at Netflix. It was like, okay, we're going to, to your point, we have a hypothesis, right?
40:12We think about like, okay, Is that the best idea? Is this the best way to run it? Okay, we all agree that it is. Let's go try it. Let's learn. And let's get the data. And then we'll keep moving from there. And if it goes great, okay. If it doesn't, that's okay too. Because we're learning and we're experimenting. And I don't know. I think that the culture of experimentation doesn't live in the floors of every person in the company. Right? And it has to be, it can't just be in the R &D team, right? That doesn't work. It has to be part of how you work. It's tricky because it's so easy to do performative experiments.
40:55Be performative around this, but still like, but we just like you to actually deliver on the plan and to actually really kind of embed that. I mean, Pete, have you seen, I mean, what's the difference between the companies you've seen that are actually brilliant at this kind of small experiment process and ones that are less good at it.
41:13Peter Clarke:I was thinking about that in the one line, one word I would say is courage, right? So whether the founder, the CEO, if it's bigger, and no longer the founder, but often founder CEOs, the ones who started and run, I mean, look at Reed, you think about like a Benny Off, I think about just, yeah, I mean, some of the like George Kurtz at CrowdStrike and Andrew at Clavio. And like, these are founders who have, started it from the beginning and against all, you know, sort of, I guess, logic and input on the theater of public opinion is, you know, they've just done what they've done, right? And they've owned the decisions, right?
41:53Peter Clarke:When they're good or bad. And I think just have cared less about trying to make it seem presentable or logical to the world. And I think that seems to To me, I guess I would distill that down. That's a differentiator. Yeah. And someone was mentioning it like a Benny Hall, you know, Salesforce. So do people think of them as the most innovative thing? Not really, except, you know, who like went all in trying to turn the gigantic ship on agents when it was still like nascent was Mark Benioff. And people are like, oh, that's insane. Right. Or he's just doing the thing or he's like, you know, just giving some marketing buzzwords.
42:31Peter Clarke:But he did it. Right. And it's like, we're going to do this thing. And the stock took a hit. I think the courage to act in spite of what everyone's telling you. And we say in our world on the venture side, I mean, there's zero risk for folks to be contrarian in that sense of tell people why it won't work. Yeah. Right. Because if you say it doesn't work and it still does, nobody remembers that you said it didn't. Right. But if you say it doesn't work and it doesn't, you can be like, see how brilliant I was. I told you so. And so I think that just defaults to a certain type of inputs, right, where most of the people from the outside tend to want you to look like you're doing what you're supposed to be doing.
43:15Peter Clarke:And the best, most innovative companies have never been built that way. Yeah, no, it's true. And I think, you know, as you were speaking, and you were saying two things, it's like, courage, right? Like, despite what everybody else is thinking, you know, I mean, like, even look at Elon, when like, you're really like making rocks, it's stupid, right? And it's like, okay, but he's still, you know, he still went for it, even though everybody was thinking this was the stupidest idea ever. But then, you know, but I think the other thing you said was ownership. And I think when you look at all of those individuals, whether it was Mark or Reed or Elon or whoever, like they had this courage, but they also had tremendous ownership about what was working and what wasn't.
43:59Right. And didn't shy away from those things. And I think both of those things are really hard for humans to do.
44:08Peter Clarke:Yeah, well, you know, I think it was Facebook, right? Codified the fail fast. Of course, you know, I think folks adopted that for various things. It's, you know, fail fast, but fix it even faster. Yeah, yeah. So it still wasn't a license to be creative, right? And to take risks and do experiments, you know, in a way, I think it had started that way. But, you know, ultimately, it met the sort of immovable object of, you know, public opinion and or what you're supposed to be doing. Yeah. but I mean yeah the pioneers have never sort of followed the path which is fine I mean books are written and everyone knows this and you know Steve Jobs and you know look what he and you know I mean he got fired and then he came back and he was hard to work with and all and it's just like but he like he saw where he was going and he just went for it right and you know and everyone's like well how do we do that I deal with that a lot where it's like you know how do I find back the Facebook analogy my cheryl sandberg right it's like well you hire a cheryl sandberg like mark did which is like she was in operations at google so on paper i get that now well how did that company find this person yeah because their background prior had no indication that they would be wildly successful and it's like well they took a shot right like yeah they saw something and they went for it yeah the woman who the woman who runs my training company boxer crayons i hired from behind the bar of my local pizza bar.
45:33And it was her first. She's super smart. She's doing a PhD in literature, which is how we bonded because my wife's done that and I've done a master's degree in literature. I was like, oh, you're great. Why don't you come and do a little bit of work with me? And then within five years, she was the CEO of the company. And I get asked a lot, Pete, where do I find somebody like Shannon? Yeah. And I'm like, you know. Behind the pizza counter. What you need to know is I've hired a bunch of really great people. I've also hired a bunch of really not great people. And I could tell a similar story where I tried to hire this person from the equivalent of behind the pizza bar, and it was a disaster.
46:12It just didn't work out at all. I've got both of those stories. But of course, the story that you hear is the one that worked because I'm willing to risk knowing often I try and be really good about what is actually at risk. and so managing that risk downside and try and build my capacity for risk because i think that's one of the things that is tough to do and i think ai one of the things i'm taking away from this conversation is to what extent does ai subtly undermine courage because it keeps driving us to certainty and decision making and pace and it gives us less on how much am i willing to lose How much can I lose?
46:55What's really at risk here? What's the courageous bet to make? Well, I'm cognizant of time because we're running out of time, which I'm so bummed about because I adore you, Michael. And you're always just so fun. We just adore you also. I'm feeling the love both ways. Yeah. Yeah. Well, I just, you know, I learn something every time I talk to you and you're just, the way that your brain works is so captivating and interesting. And so I'm very appreciative of that. I want to end on, because we've gone all different places in this conversation, but I want to end on a note of inspiration. And we always ask our guests to leave our listeners with some inspiration, some advice that they can take away with them this week.
47:43So what would be your advice or inspiration? Well, I'll say the thing I learned writing the 10-year anniversary of the Coaching Habit book. I added this extra chapter at the end on the being of coaching. The book is about the doing of coaching. It's like, here are seven really good questions. If you add these, if you stay curious a little bit longer, you are more effective as a leader and a manager and a contributor. But in writing the extra chapter, here's the thing I came to realize. As helpful as coaching is to figure things out, and coaching is a really great leadership skill to do that, it offers an even deeper gift and it's to help people feel seen and heard and encouraged and i think one of the most important roles of you as a leader is to bring out the best in your people and sometimes when you're coaching people you may not figure it out it may be a conversation where you're like we're wrestling with stuff and we got somewhere but we didn't kind of stick the landing but when When people feel seen and heard and encouraged, then you become the leader they talk about in years to come that made the big difference for them.
48:55So in the work you're doing now as you're listening to this podcast, yeah, you've got to get the work done. But if you think about the people in your circle, how are you showing up in a way that helps them feel seen and heard and deeply encouraged? I love it. And it's so, so true. It's so true. And I think we didn't touch on this, but I'm glad you brought it up because I think a leader's ability to inspire, develop, coach, motivate, just in this new world becomes increasingly more important. And so it's a really great point. And you're a really great guy. And I'm glad you came back on the podcast.
49:38Me too. Me too. Because you're amazing. and everyone please go out and get the coaching habit because it's fun as i said it's beautiful so it'll if you and if you don't read it it'll look really good on the bookcase but i would suggest reading it because it is a fantastic book and there's just so much that you can take away not only as a leader but as just a person in general from this book so i hope everybody goes out and gets it. Michael, if they want to find out more about you, I know they can get the book on Amazon or wherever you get your books, but where can they find out more about you?
50:17Look, for me personally, my website is mbs.works. That's where you can find my books and the various bits and pieces that I offer. Every book I do has a ton of free stuff to download, so you can certainly get the additional resources. If you're looking to bring the coaching habit into your organization, boxofcrayons.com is that organization. Yes. And Michael also has a podcast. So tune in because it's great. Featuring the very Jessica Neal. Yeah. Well, what are you not doing, Michael? I mean, you're doing everything. Thank you again for coming on and thank you listeners. And thanks, Pete.
50:52Peter Clarke:Yeah. Thank you. Thank you, Michael. Thanks for listening to TruthWorks.
From the publisher
What if AI is quietly making you a worse leader, and you can't even feel it happening?
Michael Bungay Stanier (MBS) is the bestselling author of The Coaching Habit, one of the most widely read leadership books of the last decade, now re-released in a 10-year anniversary edition. He is the founder of Box of Crayons and the host of the Change Signal podcast.
In this episode of Truth Works, he joins Jessica Neal and guest co-host Peter Clarke to ask an uncomfortable question: is AI making us worse leaders?
His answer is yes.
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THE CORE ARGUMENT
AI seduces us into speed, certainty, and the half-decent answer, at the exact moment leadership demands the opposite. MBS argues curiosity is being chipped away in all of us, and the leaders who survive the AI era will treat it as a discipline they practice, not a trait they assume they have.
At the center of the conversation is his framework for what leadership now requires:
→ Clarity over certainty
→ Context over content
→ Connection over cocooning
→ Courage over collusion
He and Jessica unpack why judgment and taste, not big teams, budgets, or functional expertise, are the skills that actually scale when everyone has the same information and the same tools.
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INSIDE NETFLIX
Jessica draws on her years at Netflix, where the company interviewed for curiosity, treated big decisions as "bets" instead of life-or-death calls, and reframed failure as data.
She tells the story of the $100M House of Cards bet, admits most of Netflix's decisions were actually bad ones, and explains how a culture of small experiments and honest trade-offs is what let the company take the swings that built it.
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ALSO IN THIS EPISODE
→ Why data is political, not neutral
→ Why courage is the real differentiator behind every great founder
→ The strategy question: "If we say yes to this, what must we say no to?"
→ The deeper gift of coaching that has nothing to do with having the answer: helping people feel seen, heard, and encouraged
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TOPICS COVERED
→ Why AI is deadening curiosity more than fostering it
→ The 4 C's of leadership in the AI era
→ Why judgment and taste beat big teams and budgets
→ The Netflix $100M House of Cards bet
→ Why most of Netflix's decisions were bad ones, and why that was fine
→ Building a culture of small experiments
→ Why data is political, not neutral
→ Why courage is the differentiator behind every great founder
→ The strategy question
→ The deeper gift of coaching
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Find Michael: MBS.works | boxofcrayons.com | The Coaching Habit (Amazon)
Truth Works is hosted by Jessica Neal & Peter Clarke.
