Key Takeaways
1. Enterprise Thinking: A holistic approach to leadership
Enterprise Thinking integrates these skills and gives you the tools and instruction to act on them.
Universal leadership framework. Enterprise Thinking is a comprehensive approach to leadership that integrates four key categories: Strategizing, Learning, Performing, and Forecasting. This framework provides leaders with a universal set of tools and activities applicable across industries, sectors, and management levels. By adopting Enterprise Thinking, leaders can:
- Break down silos within organizations
- Improve decision-making processes
- Enhance communication among team members
- Accelerate personal and organizational achievement
The approach emphasizes the importance of maintaining a 50,000-foot perspective, allowing leaders to see the interconnectedness of various organizational elements and make more informed decisions.
2. The Economics of Thinking: Invest in strategy before action
The better able a leader is to think through an idea before committing to action, the greater the chances an organization has to achieve higher returns, all while mitigating risk and expense.
Prioritize strategic thinking. The Economics of Thinking emphasizes the value of investing time and resources in strategic planning before taking action. This approach yields several benefits:
- Reduced risk of costly mistakes
- Improved decision-making quality
- Higher return on investment
- Increased likelihood of achieving desired outcomes
Leaders should resist the urge to jump into action prematurely and instead allocate sufficient time for thorough analysis and planning. This upfront investment in thinking pays dividends throughout the project lifecycle, as it helps identify potential pitfalls and optimize resource allocation.
3. Rethinking leadership: Challenge conventional wisdom
You are paid to think.
Question assumptions. Leaders must constantly challenge their own assumptions and conventional wisdom to drive innovation and improvement. Key areas to rethink include:
- The distinction between leadership and management
- The true value of leaders to their organizations
- The nature of change and how people respond to it
- The concept of doing more with less
- The role of technology in organizational success
By critically examining these and other assumptions, leaders can uncover new opportunities, overcome challenges, and adapt more effectively to changing circumstances. This mindset of continuous questioning and reevaluation is essential for staying competitive in today's rapidly evolving business landscape.
4. Developing plans: Create, execute, and manage priorities
You will get much, much, much more value out of your priority-management system if you plan your days the nights before.
Strategic planning process. Effective plan development involves three key components:
- Creating strategy using the Cyclonic Strategic Thinking (CST) Model
- Transforming with projects
- Managing priorities
The CST Model guides leaders through five phases:
- Determine Desired Outcome
- Develop Strategy
- Select Macro Tactics
- Finalize Tactics
- Address Execution
Project management should adhere to the Two-Project Rule, limiting individuals to managing two projects simultaneously for optimal results. Priority management involves:
- Planning 60% of your day
- Focusing on high-value activities
- Using a structured system to track and manage tasks
By integrating these components, leaders can create more effective plans, execute them efficiently, and maintain focus on the most important priorities.
5. New product development: A structured approach to innovation
The ET Development Funnel is a modified version of the Phase-Gate Process, a tool traditionally used within new product development circles for creating products that will be sold to customers.
Systematic innovation process. The Enterprise Thinking (ET) Development Funnel provides a structured approach to new product and service development, consisting of three main activities:
- Ideation: Generating and capturing a large number of ideas
- Elimination: Filtering ideas through three screens to identify the best option
- Development: Converting the selected idea into a finished product or service
Key principles for successful product development include:
- Starting with a large pool of ideas (100 > 7 > 3 > 1)
- Using predetermined criteria for screening ideas
- Involving cross-functional teams throughout the process
- Conducting thorough testing and evaluation before launch
By following this systematic approach, organizations can increase their chances of developing successful products and services while minimizing risk and resource waste.
6. Establishing alliances: Leverage partnerships for growth
Alliances are those people or organizations that can help you reach your Desired Outcomes faster and better than you or your organization can do on your/its own.
Strategic partnership development. Establishing effective alliances can significantly enhance an organization's capabilities and reach. Key considerations for building successful alliances include:
- Understanding the six forms of alliances: ad hoc, consortium, project joint venture, joint venture, merger, and acquisition
- Aligning alliances with organizational strategy and desired outcomes
- Using tools like the Alliance Pillars Checklist and the Modified ET Development Funnel to select and develop alliances
- Being aware of potential alliance killers, such as uncertainty, apathy, and incompatibility
Leaders should approach alliance-building strategically, considering both short-term and long-term benefits. By leveraging the strengths of partners, organizations can achieve goals more quickly and efficiently than they could on their own.
7. Leveraging technology: Maximize potential and adapt to change
Technology is anything you use to maximize potential.
Strategic technology adoption. Leaders must approach technology as a tool for maximizing organizational potential and adapting to change. Key principles for leveraging technology effectively include:
- Expanding the definition of technology beyond electronic devices
- Selecting technology cross-functionally and with the big picture in mind
- Implementing technology with a clear purpose and desired level of automation
- Addressing the human side of technology adoption, including potential resistance to change
Five steps for successful technology implementation:
- State your Desired Outcome
- Develop your Strategy
- Select Macro Tactics
- List Tactics and fill in details
- Guide and support execution
By viewing technology as a strategic tool and following a structured implementation process, leaders can harness its power to drive organizational growth and adaptation in an ever-changing business landscape.
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FAQ
What is Paid to Think by David Goldsmith about?
- Comprehensive leadership toolkit: Paid to Think introduces Enterprise Thinking (ET), a holistic leadership approach that integrates twelve essential activities across four categories: Strategizing, Learning, Performing, and Forecasting.
- Bridging theory and practice: The book addresses the gap between traditional business education and real-world leadership, providing practical tools and methodologies for better decision-making.
- Universal applicability: Goldsmith’s ET framework is designed to be cross-functional, cross-industry, and relevant for leaders at any level or sector worldwide.
- Future-oriented mindset: The book emphasizes proactive, future-focused thinking to help leaders anticipate challenges and create sustainable success.
Why should I read Paid to Think by David Goldsmith?
- Transform your leadership approach: The book equips readers with actionable tools and concepts to improve thinking skills, solve challenges, and seize opportunities more effectively.
- Improve decision-making and results: Goldsmith provides step-by-step methodologies to help leaders make better, faster, and more accurate decisions, reducing risk and waste.
- Develop transferable skills: The focus is on teaching leaders how to think strategically and systematically, enabling them to build stronger teams and organizations.
- Adapt to rapid change: The book offers tools to help leaders keep pace with a fast-moving world, leveraging technology and alliances for competitive advantage.
What are the key takeaways and core concepts from Paid to Think by David Goldsmith?
- Enterprise Thinking framework: Leadership activities are organized into four categories—Strategizing, Learning, Performing, and Forecasting—each with specific tools and processes.
- Twelve universal activities: These include planning, innovating, empowering, selling, forecasting, and more, all designed to help leaders operate at a “50,000-foot” perspective.
- Structured thinking and execution: Goldsmith emphasizes the importance of structured thinking before action, using models like the CST Model and ET Development Funnel.
- Leadership as teachable and practical: The book argues that leadership is about consistent activities and results, not just traits or charisma.
How does Paid to Think by David Goldsmith define and use the Enterprise Thinking (ET) framework?
- Four activity categories: ET organizes leadership into Strategizing, Learning, Performing, and Forecasting, ensuring leaders address all critical aspects of organizational success.
- Twelve interconnected activities: These range from developing plans and alliances to empowering others and forecasting the future, providing a comprehensive leadership roadmap.
- Cross-functional and scalable: The ET framework is designed to break down silos, apply across departments, and scale from small teams to global organizations.
- Holistic leadership approach: ET encourages leaders to integrate personal and organizational goals, aligning internal thoughts with external actions.
What is the Cyclonic Strategic Thinking (CST) Model in Paid to Think and how does it improve strategy development?
- Five-phase process: The CST Model breaks strategy into Desired Outcome, Strategy, Macro Tactics, Tactics, and Execution, offering more structure than traditional models.
- Cyclonic thinking explained: It encourages leaders to intentionally swirl ideas and options before acting, preventing premature decisions and missed opportunities.
- Execution as a distinct phase: CST treats execution separately, highlighting the leader’s role in overseeing both planning and implementation.
- Practical application: The model helps leaders convert ideas into actionable plans that deliver measurable results.
How does Paid to Think by David Goldsmith approach priority management versus time management?
- Priority over time: The book asserts that time cannot be managed, only priorities can, shifting focus from task lists to strategic alignment.
- Nightly planning routine: Goldsmith recommends a seven-step nightly process to transfer, prioritize, and schedule tasks, ensuring daily activities support strategic goals.
- Work-life balance: The system is designed to reduce mental burden, improve focus, and create more time for high-value thinking.
- Five principles for success: These include planning ahead, scheduling only 60% of the day, and balancing work with personal priorities.
What is the ET Development Funnel in Paid to Think and how does it improve new product and service development?
- Three-phase process: The funnel guides leaders from Ideation (gathering ideas), through Elimination (screening and evaluating), to Development (building and launching the best idea).
- Structured decision-making: It uses broad, surface, and detailed evaluation screens with gatekeepers to ensure only the best ideas move forward.
- Cross-functional collaboration: The process involves multiple departments and experts, reducing risk and increasing the likelihood of successful launches.
- Internal and external products: Goldsmith expands the definition of “products” to include internal systems and processes, encouraging organization-wide innovation.
How does Paid to Think by David Goldsmith define and support effective empowerment of others?
- Strategic empowerment: Empowering others means transferring authority and responsibility in alignment with organizational strategy and desired outcomes.
- Empowerment package: Leaders must proactively provide systems, tools, training, and support to enable others’ success.
- Intentional and tailored: Empowerment should be based on individuals’ abilities, with clear plans and expectations communicated.
- Avoiding ineffective motivation: The book warns against relying solely on encouragement, emphasizing the need for comprehensive support and alignment.
What is the Goldsmith Productivity Principle (GPP) in Paid to Think and how does it impact leadership focus?
- 80/20 productivity split: GPP states that 80% of organizational performance comes from systems and structures, while only 20% comes from people.
- Systems first: Leaders should prioritize building effective systems, tools, and processes before focusing on personnel issues.
- Leadership responsibility: Leaders must maintain a high-level perspective to design and oversee these systems for optimal performance.
- Avoiding micromanagement: By focusing on systems, leaders empower employees and reduce the need for direct oversight.
How does Paid to Think by David Goldsmith address alliances and what tools are provided for building successful partnerships?
- Six forms of alliances: The book details ad hoc, consortium, project joint ventures, joint ventures, mergers, and acquisitions, each with unique resource and risk profiles.
- Alliance Pillars and Killers: Goldsmith provides checklists to ensure alliances are well-structured and to avoid common pitfalls like uncertainty and incompatibility.
- ET Alliance Development Funnel: This tool guides leaders through ideation, elimination, and development phases for alliances, mirroring the product development process.
- Strategic alignment: Choosing the right alliance form and partner is crucial for achieving organizational goals and maximizing mutual benefits.
What forecasting concepts and tools does Paid to Think by David Goldsmith introduce for leaders?
- Forecasting as art and science: The book blends creativity with data, patterns, and knowledge to anticipate future challenges and opportunities.
- Key tools: Concepts like Cycles, Trends, Patterns, Forecasting Triggers, Activity-Based Forecasting, and the Extrapolation Formula help leaders extend their vision forward.
- Avoiding forecasting mistakes: Goldsmith lists common errors, such as overestimating accuracy or ignoring warning signs, and provides strategies to avoid them.
- Integration with ET: Forecasting informs strategizing, learning, and performing, ensuring leaders are always prepared for what’s next.
What are the best quotes from Paid to Think by David Goldsmith and what do they mean?
- “The success of every leader hinges on his ability to sell . . . to sell himself as capable and credible, to sell his ideas . . . and to sell others on the promise that he can take them where they want to go.” This highlights that leadership is fundamentally about continuous selling beyond products.
- “You can’t solve tomorrow’s challenges with yesterday’s thinking.” This stresses the importance of forward-oriented forecasting and innovation to stay competitive.
- “Empowering others is not a touchy-feely activity, but one that’s strategic in nature.” This underscores that empowerment must be intentional, aligned with strategy, and supported by systems to be effective.
- “Thinking is the hardest work there is, which is probably the reason why so few engage in it.” Quoting Henry Ford, Goldsmith emphasizes the value and rarity of deep, structured thinking in leadership.
Paid to Think receives mostly positive reviews, with readers praising its comprehensive approach to leadership and strategic thinking. Many find it valuable for its practical insights on problem-solving, decision-making, and staying ahead of competitors. The book is described as detailed and well-researched, offering a fresh perspective on business management. Some readers appreciate its in-depth coverage of topics like strategizing, learning, performing, and forecasting. However, a few critics find the book overly complex and difficult to implement in practice.
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