To build a high-trust military from a low-trust slave culture, Toussaint Louverture enforced all commitments, including marital fidelity. This cultural shift made his army trustworthy to civilians, who then supported and protected them, providing a key strategic advantage.

Calling a "code red" is a strategic leadership move used to shock the system. Beyond solving an urgent issue, it serves as a loyalty test to identify the most committed team members, build collective confidence through rapid problem-solving, and rally everyone against competitive threats.

During a major crisis, a leader cannot rely on team consensus because everyone is still aligned with the old, now-invalid strategy. The CEO must dictate the new direction and be willing to be inconsistent to reset the organization quickly.

Francisco Pizarro's initial success was built on a partnership with Diego de Almagro. By negotiating a vastly superior royal deal for himself, he sowed the seeds of a bitter rivalry. This internal feud between the co-founders would fester and ultimately prove fatal to their entire enterprise and their lives.

If a decision has universal agreement, a leader isn't adding value because the group would have reached that conclusion anyway. True leadership is demonstrated when you make a difficult, unpopular choice that others would not, guiding the organization through necessary but painful steps.

Conquistador expeditions were entrepreneurial ventures, not state campaigns. Leaders like Pizarro formed partnerships, raised private funds, and invested in high-risk "island hopping" operations hoping for massive returns. This model privatized both the risk of failure and the rewards of success, mirroring modern venture capital.

Ben Horowitz uses a historical parallel to illustrate powerful culture: Toussaint Louverture's seemingly absurd rule against adultery for his soldiers. This created immense discipline. His army didn't rape or pillage, earning them the crucial trust of local women who then helped them defeat European forces.

Francisco Pizarro's invasion of Peru was heavily influenced by the recent success of his cousin, Hernán Cortés, in Mexico. The fall of the Aztecs provided a tangible model for conquest, proving that small bands of conquistadors could topple vast empires. This precedent made it easier for Pizarro to secure funding and royal support.

Unlike peers seeking wealth, the illiterate Francisco Pizarro was driven by a thirst for glory. This personal ambition, rather than simple greed, fueled his relentless expeditions at an age when most conquistadors had retired, demonstrating that non-material motivations can drive extreme risk-taking.