Dan Waldschmidt

by Dan Waldschmidt

July 24, 2009

Skin in the Game

bruise_first_aid

Warren Buffett famously coined the term “skin in the game” in his business insight that you can “guarantee” the success of a company by requiring C-level executives to use their own money to buy stock in the particular company they are running.  Since the company’s interests and the senior leadership’s interests are the same thing, you have maximum inertia in the right direction… That’s great for running a business, but let’s go another direction.

If you’ve played on an outdoor basketball court at all, then you know what it’s like to leave “skin in the game”.  It can be brutal.  Every dive and fall leaves a scrape, a gash, or a bruise.

The harder you play, the tougher you need to be.

So it is on the court of “changing the world”…

You should assume that you will leave skin in the game if you really believe in something:

  • If you don’t have skeptics… then your idea isn’t big enough…
  • If you don’t have critics…  then you are doing everything wrong…
  • If you don’t have a nemesis…  then you are not changing the status quo

If you have skin in the game, you can expect to be regularly maligned, misunderstood, hated… and most possibly SUCCESSFUL!

Reblog this post [with Zemanta]

About the author

Dan Waldschmidt

Dan Waldschmidt doesn’t just talk about leveling up. He’s obsessed with it. He's set records as an ultra-runner and been the personal strategist for the leading business leaders of our time. He wrote a book, called EDGY Conversations that accidentally became a worldwide bestseller and continues to share his insights from the stage as a keynote speaker and on the blogs and podcasts you will find here. Most days, you'll find Dan heads-down, working on breakthrough strategies for his clients at EDGY Inc, a highly-focused, invite-only, business strategy execution company based out of Silicon Valley.