Instead of viewing problems as setbacks, Jacobs sees them as the very raw material for creating value. Solving obstacles for customers, employees, or within operations is how money is made. This mindset transforms stressful challenges into opportunities for growth and profit, preventing burnout.
During a period of clinical depression, Brad Jacobs underwent two years of cognitive therapy. This process was a turning point, helping him reframe his perfectionistic "musts" and "shoulds" into mere preferences. This shift allowed him to accept reality, reduce stress, and operate more effectively.
Jacobs's team uses the acronym WOTWOM—Waste Of Time, Waste Of Money—as a rapid check on new ideas. Any suggestion can be challenged with this label if it doesn't clearly contribute to organic revenue growth or margin expansion. This simple tool creates a culture focused on high-leverage activities.
To differentiate talent, serial founder Brad Jacobs imagines a key employee resigning. If his reaction is relief, they're a C-player. If it's manageable inconvenience, a B-player. But if the thought induces "pure terror and absolute panic," they are an irreplaceable A-player you must retain.
Brad Jacobs uses a unique meditation technique where he expands and contracts his mental focus across vast scales of time and space, like an accordion. This practice helps him see business problems in their proper proportion, fostering humility, purpose, and wisdom by providing a grander context for daily challenges.
Great founders like Sam Zell and Charlie Munger don't retire; their exit strategy is death. They work until the end because their work isn't a job, but a deep-seated passion. The ultimate sign of loving your work is that no amount of money could convince you to stop doing it.
The key to long-term entrepreneurial success is building a business that aligns with your natural disposition. Michael Dell thrived on the pressure of competing with IBM, while his more experienced partner burned out. The challenges energized Dell because the business was a natural extension of who he was, not a constant struggle.
Brad Jacobs's mentor taught him that correctly identifying long-term trends is paramount. You can excel at execution, but if you're swimming against the major current, you won't create significant value. This principle guided Jacobs in selecting industries for his eight billion-dollar companies.
Instead of a top-down agenda, Brad Jacobs has his leadership team collaboratively create it for key meetings. Attendees submit and rank questions based on pre-read materials. Only the highest-rated topics make the final agenda. This bottom-up approach ensures the meeting focuses on what the team collectively deems most critical.
Serial acquirer Brad Jacobs boils down his complex business strategy to two core objectives: growing organic revenue faster than the market and continuously expanding profit margins. Every decision is evaluated against its ability to move one of these two levers, providing a clear and powerful framework for creating shareholder value.