Drawing on Charlie Munger's wisdom, investment management problems often stem from misaligned incentives. Instead of trying to change people's actions directly, leaders should redesign the incentive structure. Rational individuals will naturally align their behavior with well-constructed incentives that drive desired client outcomes.

People won't bring you problems if they fear your reaction. To build trust, leaders must not only control their emotions but actively thank the messenger. This reframes problem-reporting from a negative event to a positive act that helps you see reality more clearly.

A 'blame and shame' culture develops when all bad outcomes are punished equally, chilling employee reporting. To foster psychological safety, leaders must distinguish between unintentional mistakes (errors) and conscious violations (choices). A just response to each builds a culture where people feel safe admitting failures.

Feedback often fails because its motivation is selfish (e.g., 'I want to be right,' 'I want to vent'). It only lands effectively when the giver's genuine intention is to help the other person become who *they* want to be. This caring mindset dictates the delivery and reception.

"Glue employees" are team members with high EQ who proactively help others and prioritize the team's success. They are multipliers but often go unnoticed because they aren't traditional "star" performers. Leaders should actively identify them by asking team members who helps them the most and then reward them accordingly.

The belief that people fail due to lack of will leads to blame. Shifting to 'people do well if they can' reframes failure as a skill gap, not a will gap. This moves your role from enforcer to helper, focusing you on identifying and building missing skills.

To encourage participation from everyone, leaders should focus on the 'why' behind an idea (intention) and ask curious questions rather than judging the final output. This levels the playing field by rewarding effort and thoughtfulness over innate talent, making it safe for people to share imperfect ideas.

People naturally start their jobs motivated and wanting to succeed. A leader's primary role isn't to be a motivational speaker but to remove the environmental and managerial barriers that crush this intrinsic drive. The job is to hire motivated people and get out of their way.

Culture isn't about values listed on a wall; it's the sum of daily, observable behaviors. To build a strong culture, leaders must define and enforce specific actions that embody the desired virtues, especially under stress. Abstract ideals are useless without concrete, enforced behaviors.