Magic Johnson advises high-profile individuals to build a team of business experts who are smarter than them. Crucially, this team must be professionals, not a social entourage. Their primary role is to provide honest counsel, manage deals, and have the authority to say 'no' to bad ideas or expenditures.
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Leaders often feel they must have all the answers, which stifles team contribution. A better approach is to hire domain experts smarter than you, actively listen to their ideas, and empower them. This creates a culture where everyone learns and the entire company's performance rises.
Magic Johnson attributes his ability to join major deals, like buying sports teams, to disciplined saving. His mentor, Dr. Jerry Buss, taught him that even with a strong relationship, you must be ready to write a check. This readiness to deploy capital when opportunities arise is a key differentiator.
A manager is not a mentor. Instead of depending on a single, formal mentor within their reporting structure, aspiring leaders should cultivate a personal 'board' of two or three trusted advisors. This external network provides diverse, on-demand input for specific business situations that fall outside a leader's direct experience or comfort zone.
Unlike a functional manager who can develop junior talent, a CEO lacks the domain expertise to coach their entire executive team (e.g., CFO, VP of HR). A CEO's time is better spent hiring world-class leaders who provide 'managerial leverage' by bringing new ideas and driving their function forward, rather than trying to fix people in roles they've never done.
Beyond strategy and marketing, a team—whether in sports or business—must define its core identity. Magic Johnson argues that fans, customers, and potential hires (like free agents) latch onto this identity. A clear answer to 'Who are you?' and 'Do you want to win?' is critical for attracting the best people.
Michael Ovitz tested Magic Johnson's commitment by initially rejecting him, then assigning him business magazines to study. Only after Johnson passed a test on the material did Ovitz take him on, immersing him in his network. This trial-by-fire method filtered for seriousness and built resilience.
No matter how intelligent you are, personal bias clouds judgment. For all significant decisions—personal, professional, or economic—consult a trusted "kitchen cabinet" of objective advisors. This external perspective is crucial for sound decision-making and protects against isolated thinking.
Magic Johnson debunks the myth that you must be the sole owner to be successful. He advocates for strategic partnerships and collaboration to access bigger deals and scale ambitions faster. Embracing an abundance mindset allows entrepreneurs to achieve goals far beyond what they could accomplish alone.
The most important job of a leader is team building. This means deliberately hiring functional experts who are better than the CEO in their specific fields. A company's success is a direct reflection of the team's collective talent, not the CEO's individual brilliance.
This advisor's role is not to make decisions but to provide a cool-headed, pragmatic perspective. They test your hypotheses and translate them into practical terms, helping to improve results and limit losses by identifying blind spots before you commit.
