Olivia: Here’s a startling number, Jackson: only about 10% of leaders run their teams at full power. Jackson: Only ten percent? That’s… shockingly low. So you’re telling me that ninety percent of teams are just sputtering along, not hitting their potential? Olivia: Exactly. Ninety percent of us are leaving massive potential on the table. And according to the book we're diving into today, the reason isn't a lack of vision or hard work. It's a failure to do basic math. Jackson: Basic math? Okay, that sounds a little insulting to leaders everywhere. What are you talking about? Olivia: I'm talking about the core idea in Power Score: Your Formula for Leadership Success by Geoff Smart, Randy Street, and Alan Foster. They argue that leadership effectiveness boils down to a simple multiplication problem. Jackson: A multiplication problem. For leadership? That sounds like something from a business school textbook, not the messy reality of managing people. Olivia: I hear your skepticism, but what's fascinating is that these guys aren't just theorists. Their firm, ghSMART, is a major player in leadership advisory. They built this formula from an incredible dataset—research on over 15,000 leadership careers and 9 million data points. They literally crunched the numbers on what makes leaders succeed or fail. Jackson: Fifteen thousand careers? Okay, that’s a serious sample size. It’s not just a handful of anecdotes. So, what is this magic formula that’s supposed to solve leadership?

Olivia: It’s deceptively simple. The Power Score is P times W times R. That’s it. Jackson: P… W… R. Alright, I’m guessing P is for Priorities? Olivia: You got it. P is for Priorities: are you focused on the few things that truly matter? W is for Who: do you have the right people on your team? And R is for Relationships: are you leading your team in a way that fosters coordinated action and achieves results? Jackson: Okay, Priorities, Who, Relationships. That makes sense. But the multiplication part is what’s tripping me up. Why not addition? Olivia: Ah, that’s the genius and the brutality of it. The authors use a brilliant analogy: leadership is like a triathlon. You have to swim, bike, and run. It doesn’t matter if you’re a world-class cyclist and a record-breaking runner. If you can’t swim, you’re not finishing the race. Jackson: Whoa. So if you get a zero in one area, your entire score is zero. Olivia: Precisely. Let’s say you rate each dimension on a scale of 1 to 10. The highest possible score is 10 times 10 times 10, which is 1,000. But imagine you are a phenomenal leader when it comes to setting Priorities—a 10 out of 10. And you build amazing Relationships—another 10. But you’re terrible at hiring and have the wrong people on your team. Your ‘Who’ score is a 1. Jackson: So your total Power Score isn't 21. It's 10 times 1 times 10… which is only 100. Out of a thousand. That’s a failing grade. Olivia: It’s a failing grade. You sink in the swimming leg of the race. This is why so many leaders fail. They think being brilliant in one or two areas is enough. The formula shows that a single, significant weakness can neutralize all of your strengths. It’s an unforgiving diagnostic tool. Jackson: That’s a powerful, if slightly terrifying, way to look at it. I can see how some readers might find this formula a bit… reductive, though. The book has faced some criticism for its Q&A format and for maybe oversimplifying things. Is leadership really just a math problem? Olivia: That’s a fair point, and the authors would probably agree it’s not just a math problem. The formula isn’t meant to replace human judgment or the nuances of culture. It’s a mirror. It’s designed to force leaders to confront their weaknesses with radical honesty. You can’t hide from the math. If your score is low, you have to ask yourself why, and the book is a guide to figuring that out. Jackson: A mirror for radical honesty. I like that. It’s less of a solution and more of a diagnosis. Okay, so let's get into the diagnosis. Let's break this down. 'P' for Priorities. That sounds like every business book ever written. Set goals. Be strategic. What's new here?

Olivia: This is where it gets really interesting. The authors argue that priorities are not just goals. They define them with a very specific phrase: "what needs to be done, and why that matters." The "why" is the crucial part that most leaders miss. And they learned this lesson in the most humbling way possible. Jackson: How so? Olivia: The authors tell a story from about twenty years ago, when their firm, ghSMART, was the subject of a case study at Harvard Business School. They’re in the classroom, proud as can be, listening to the discussion. Then, an MBA student raises his hand and says something that just stops them in their tracks. Jackson: What did he say? Olivia: He said, "I don't think your firm has a soul." Jackson: Ouch. In front of a Harvard class. That must have been a punch to the gut. Olivia: A total gut punch. But to their immense credit, instead of getting defensive, one of the founders, Randy, asked the student what he meant. The student explained that while the firm was clearly successful, he had no idea what they believed in, what their guiding principles were, or why they existed beyond making money. They had no articulated 'why'. Jackson: Wow. To be called out like that and actually listen… that takes incredible humility. But what a gift, right? Olivia: It was a total gift. They took that feedback to heart. It launched a year-long process where they held town halls and brainstorming sessions to capture the firm's purpose. The result was the ghSMART Credo, a document that defined their beliefs and their 'why'. They say it completely revolutionized how they thought about their work. It gave them a soul. Jackson: That’s a fantastic story. It makes the idea of 'purpose' so much more tangible than just a corporate mission statement on a wall. It has to be real. Olivia: It has to be real, and it has to drive everything. They tell another great story about Atul Gawande, the famous surgeon and author. When they asked him what his research organization's purpose was, he didn't talk about metrics or papers. He said, "We exist to make discoveries that save a million patients from suffering and harm." Jackson: A million patients. That’s a 'why'. You can get out of bed for that. Olivia: Exactly. Every priority in his organization, from who they hire to what projects they fund, flows directly from that single, powerful 'why'. That's a perfect 10 on the 'P' score. It’s connected, it’s correct, and it’s crystal clear. Jackson: I’m thinking about a more corporate example. Does this 'why' thing work when you’re not saving lives, but, say, selling software? Olivia: Absolutely. Look at the story of Josh Silverman at Skype. When he took over as CEO, the company was struggling. Morale was low, and the focus was all on hitting financial targets for their parent company, eBay. The 'why' was just 'make money for eBay'. Jackson: Not exactly inspiring. Olivia: Not at all. So Silverman did something brilliant. He started bringing customers into their all-hands meetings via video to share what Skype meant to them. They heard from soldiers in Iraq talking to their kids for the first time in months. They heard from UN workers connecting with their families across the globe. Jackson: Oh, wow. He was showing them their impact. Olivia: He was showing them their 'why'. He realized video wasn't just a feature; it was the heart of the company. He repositioned the entire brand. The mission shifted from 'free phone calls' to 'bringing people together when they can't be in the same room.' That purpose-driven shift in priorities unlocked incredible energy. The company's value grew from around 2.6 billion to 8.5 billion in three years. Jackson: All from finding the soul of the company. It’s amazing how a clear 'why' can be such a powerful economic engine. Olivia: It's the most powerful engine there is. But even with the perfect 'why,' you'll still fail if you have the wrong people rowing the boat. And this, the 'W' for 'Who,' is what the book calls the single biggest failure point for leaders.

Jackson: The biggest failure point? That’s a bold claim. Olivia: The data backs it up. According to their research, fewer than 14% of leaders excel at the 'Who' part of leadership—hiring, developing, and removing non-performers. It's the most common weakness by a long shot. Jackson: Fourteen percent. That’s dismal. Why are we so bad at it? Olivia: Because it’s hard, and it requires a fundamental mental shift. Most of us are trained to ask "How do I solve this problem?" The best leaders ask a different question: "Who can solve this problem?" Jackson: That’s a subtle but profound difference. Olivia: It’s everything. There’s a great story about Verne Harnish, a well-known entrepreneur. Back in the 80s, he wanted to create a list of the top 100 young entrepreneurs in America. The problem was, he had no idea how to do it. This was pre-internet, mind you. Jackson: So he was stuck on the 'how'. Olivia: Completely. Until he reframed the question. He asked his team, "Forget 'how.' Who has already been down this road? Who is the world's expert on creating lists like this?" That question led them to John Naisbitt, the author of the bestseller Megatrends. Naisbitt knew exactly how to do it and helped them build the list. Later, when they needed publicity, they didn't ask "How do we get press?" They asked, "Who is the smartest marketing mind in the world?" Jackson: And who was it? Olivia: Regis McKenna, the guy who helped launch Apple and Intel. By asking 'who' instead of 'how,' Harnish consistently tapped into world-class expertise he could never have developed on his own. Jackson: That is such a powerful reframe. We're all trained to be the hero who solves the 'how,' but the real leverage comes from finding the 'who.' It's about building a team of heroes, not being one yourself. Olivia: You’ve nailed it. Leadership is about setting your ego aside and admitting you don't have all the answers. Your job is to find, hire, and empower the people who do. That’s how you get a high 'W' score. Jackson: Okay, that covers finding the right 'who.' But what about the flip side? What do you do with the wrong 'who' on your team? The C-player who is dragging everyone down. That’s the part most managers dread. Olivia: It is, and it's where most leaders fail. The book is very clear on this: you have to act decisively. They tell a story about Claire Bennett at American Express Travel. She inherited a team, set new, clear priorities, and a few of her direct reports were just not on board. They resisted, they undermined, they dragged their feet. Jackson: I think every manager has experienced that. What did she do? Olivia: She tried to bring them along, to convince them. But after a short while, she realized it was futile. They lacked the 'will' to get on the bus. So, she asked them to leave. Jackson: That must have been tough. Olivia: Incredibly tough. But the moment they were gone, she said the rest of the team breathed a collective sigh of relief. The energy shifted overnight. The remaining A-players rallied, and the business took off. Her biggest lesson was that she should have done it sooner. Delaying the 'who' decision is toxic for the whole team. Jackson: It’s like that triathlon analogy again. A C-player is like a slow leak in your bike tire. It doesn't matter how hard you pedal; you're losing momentum with every rotation. Olivia: That’s a perfect way to put it. Your 'Who' score isn't just about who you bring in; it's also about who you allow to stay.

Jackson: So, when you put it all together—the unforgiving math of P x W x R, the soul-searching for the 'why' in your priorities, and the brutal honesty required to get the 'who' right—it paints a very clear picture. Olivia: It really does. The Power Score isn't just a formula. It's a diagnostic mirror. The math forces you to look at the parts of leadership you'd rather ignore—the messy people problems, the lack of a real, motivating purpose. It's a system for radical honesty with yourself and your team. Jackson: And it’s not about being perfect. The authors say a score of 729 or higher—which is a 9 in each category—puts you in the top tier of leaders. You don’t need a perfect 1,000. You just need to be consistently strong across the board. Olivia: Exactly. It's about avoiding that catastrophic failure in one area. It’s about being a great all-around leader, not a flawed genius. The framework gives you a simple, powerful way to identify your biggest weakness and focus your energy there. Jackson: It makes you wonder, what's my lowest score? Is it my Priorities, my Who, or my Relationships? That's a tough question to ask yourself, whether you’re leading a company or just your own life. Olivia: It’s a very tough question. And it's a great one for our listeners to reflect on. If you were to honestly score yourself or your team right now, which of the three—P, W, or R—do you think is the biggest challenge for leaders today? We'd love to hear your thoughts. Jackson: It’s a conversation worth having. This book provides a fantastic, no-nonsense language for it. Olivia: It certainly does. It’s a powerful tool for anyone serious about getting better. Olivia: This is Aibrary, signing off.