Leaders on Leadership: An Intimate Conversation

Conference Scope and Attendance:

• The marathon-style event concluded after approximately 654 panelists delivered content across 11 distinct tracks over 160 sessions.
• Nearly 1,000 women participated in the global conference, a demographic shift highlighted as a significant factor in productivity and economic impact.
• The session emphasized the economic multiplier effect of investing in women, citing a statistic that 90% of investment in women is effectively spent compared to 30% for men.

Core Leadership Themes:

• Risk vs. Inaction: Leaders must view the "greater risk" as failing to take bold risks; inaction is equated with a guaranteed lack of reward.
• Authority vs. Persuasion: True leadership is defined not by raw authority or coercion, but by suasion that aligns individual actions with an elevated sense of self-esteem among followers.
• Infallibility vs. Transparency: Admitting potential for failure and "giving up the fiction of infallibility" is identified as the maximum moment for expressing character and building organizational trust.
• The Art of Saying No: A critical leadership differentiator is the ability to reject "good money" or lucrative opportunities that do not align with long-term principles or risk tolerance.

Janet Napolitano (Former DHS Secretary, UC President):

• Motivation for Role Change: Transitioned from "defense" (Homeland Security) to "offense" (University of California) to lead a robust research enterprise and education of the next generation.
• Communication Strategy: In crisis management (e.g., 350 federally declared major disasters), the priority is providing factual information on remediation rather than political spin to empower the public.
• Core Mission: Defined the University of California's mission with two concise phrases: "Teach for California" and "Research for the World" to align a 235,000-student system.
• Historical Context: Recalled the 1957 Sputnik crisis as a parallel to modern leadership challenges, where clear, ambitious direction (the moon landing) was required to overcome national panic.

Steve Wynn (Chairman, Wynn Resorts):

• Preparation for Irreversible Decisions: Emphasizes that major capital commitments (e.g., $4 billion in Macau) require years of "living" with the plan and rigorous self-criticism to ensure a fallback position exists; he describes himself as someone who does not "fly without a net."
• Employee Engagement: The opening of the Mirage utilized music and shared goals ("I know what you want... a better life") to motivate low-wage employees to take responsibility for customer happiness.
• Detail Orientation: Leadership requires "grinding" on basics and details (e.g., room temperature, elevator efficiency) rather than relying on gimmicks, which are deemed worthless long-term.
• Decision Simplicity: Notable decisions, such as entering Atlantic City or Macau, often appeared "obvious in retrospect" but were driven by a conviction that the opportunity size outweighed the risk when thoroughly vetted.

Howard Marks (Chairman, Oaktree Capital):

• Second-Level Thinking: Successful investment requires deviating from consensus ("variant perception") based on deep conviction, not for the sake of contrarianism; e.g., selling a great company because the market overvalues it.
• Handling Luck and Cyclicality: Distinguishes between "luck" (opportunity meeting preparation) and pure randomness; notes that history does not repeat but "rhymes," necessitating adherence to universal themes like mean reversion.
• Organizational Culture: Criticized previous employers (e.g., Bear Stearns, TCW) for lacking a central creed, leading to the formation of profit centers without a unifying purpose.
• Perfection vs. Competence: Creates an environment where employees understand they are not required to be perfect; the goal is a "slightly better batting average" without penalty for honest errors.
• The Hard Decisions: Highlights that the most difficult choices involve turning down money or avoiding markets that appear "hot" but are cyclical peaks.

Forward-Looking and Strategic Decisions:

• CVS Caremark: Made the decision to stop selling cigarettes despite a potential $2.5 billion hit to the top line to align with the company's health mission.
• High-Yield Bonds: The emergence of the high-yield bond market was a result of individuals (Marks, Milken) deciding that efficient market hypotheses applied to traditional stocks but not to this specific sector.
• Retirement of Public Service: Leaders should not fear leaving high-status roles to pursue new challenges where the "risk" is viewed as an opportunity for greater reward.
• Long-term Commitment: In international markets like Macau, leaders must accept that decisions are irreversible for decades, requiring a mindset of being a "grateful guest" who focuses on operational excellence over time.

Narrative Arcs and Key Quotes:

• Shakespeare's "St. Crispin's Day": The panel used Henry V's speech to illustrate how leadership turns a small, exhausted group ("we few, we happy few") into a legendary force through shared identity and sacrifice.
• Michael Jackson's "Fear" Question: When asked by Michael Jackson if he feared the massive investment in the Mirage, Wynn replied that extensive planning and validation of premises eliminate fear at the time of breaking ground.
• Mark Twain's Warning: "It's not what you don't know that gets you killed. It's what you know for certain that just ain't true."
• General George Patton: Leadership at difficult times is defined by the ability to demonstrate and induce "confidence, calm, and courage."
• Benjamin Franklin: "I'm a great believer in luck. The harder I work, the more luck I have."
• Closing Sentiment: The session concluded by invoking the "St. Crispin's" sentiment, framing the conference attendees as a "band of brothers and sisters" whose shared knowledge and leadership will be remembered and influential.