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…rop?" He goes, "At any time in my company, if anybody does something awesome, I just say option drop. 50,000 options." I just give them share options at the company on the spot. Like if somebody has a great idea, they go above and beyond for a customer. They solve a problem in the meeting right there. Option drop. >> It's like Dana White giving out a bonus. >> What I'll do, he say it's a bonus, but stocking the company on the fly. And he goes and and then at night he goes if I'm there 10 p.m. and if there's like let's say 12 people there I'll just say everybody here option drop 20,000 options all of you. He's like I don't do it every night but I'll do it once every you know 50 days. And guess what? It got people to start doing the things that I cared about. They know if I solve a big problem, if I unlock some new growth, if I solve a customer's problem, if I'm working really hard, that's how I get more options. Option drop. And I was And so I'm sitting there and I'm like laughing. So, I'm laughing at him first because I'm like, that's just hilarious. Just the phrase and the way he said it, I just was cracking me up. And I was like, well, of course, of course that would work. Of course, that would reinforce behaviors rather than saying, well, I put our company values on the wall once 6 years ago. I sure hope they're doing it. You know what I mean? Like obviously a in the- moment incentive, positive reinforcement for a behavior. the more specific, the more concrete, and the more immediate a reward, the more more of that behavior you're going to get. That's kind of basic behavioral science. So, I was like, "Okay, I guess that does work." And I was like, "Is that legal? Could you?" I was like, "I don't know. I just can't feel like you can't just throw around options like that." He's like, "Why not?" >> Yeah, you could. >> He's like, "I just send a message to my assistant, option drop these people, this amount, and then it gets papered. That's it." >> Well, and and it's an option, meaning they still have to buy it, right? So, it's not like it's free money. >> Um, yeah. Like this has a strike price. Yeah. So you can you can exercise the option if you if you so choose. >> But there's that exercise window. You don't have to buy it right away. You can you know you can wait if you want. So okay, option drop was the first one of I was like, oh obviously a way to um incentivize the types of behaviors that you want right there on the spot using your company's share options. Can I give you the next one? >> Keep going. This is exciting. >> Any any you want to rate these? Maybe give me a you know give me a you have a very simple let's do gladiator thumbs down lukewarm thumbs up or double thumbs up. That's your options. >> Um not a double thumbs up. So just one one thumb up. >> Okay. [laughter] >> Yeah, that's that's very effective. Good. Not that like extreme. >> Do you do it? >> I don't do options but because Yeah. Like I just give money. >> Okay. Do you do that on the spot? >> No. >> Okay. But I'm also not the CEO and I'm also not extreme. [laughter] >> Like, you know what I mean? Like, I'm not playing that game. >> What? The game of trying to win? What do t on the spot? >> No. >> Okay. But I'm also not the CEO and I'm also not extreme. [laughter] >> Like, you know what I mean? Like, I'm not playing that game. >> What? The game of trying to win? What do you mean? Of course you are. >> Not Not at the price of being there at midnight. No, I'm more of a >> It doesn't It doesn't have to be midnight, right? Like that. That's one. You just decide of the things I care about. Do I on the fly reward the behaviors I want? >> We do it via having a gong in the office. And when someone does something awesome, we smack a gong. So, [laughter] >> auditory. Well, well, it's just like cuz everyone stares at it and you're like, we're going to like celebrate what is happening right now. But no, I don't give up money. >> Okay, here's the next one. >> Hey everyone, really quick. If you're enjoying this episode on CEO stuff, so delegating, having hard conversations with your team, hiring, then I've got something for you. So, the team at HubSpot, they actually went and put together a bunch of best practices that Sean and I use in our own companies, and they put it together in something that's really easy to read and understand. And so if you want to just save yourself 10 years of headache and heartache, then you should check it out. I wish we had this a long time ago. It would have helped me a lot. But there should be a QR code on your screen that you can scan or a link in the description. So check it out. It's totally free and totally awesome. Open AAI, the makers of chat GPT, they are trying to fight friction. So in every company, there's just a whole bunch of Especially as you grow, and when you're like them, you grow very fast. There's always just things that are just drag in bureaucratic drag in the company. Policies, procedures, you know, potholes, things that just start to trip you up as you're working in the company. Just try to do good work. So, they created what they call the friction removal service. It's sort of like a Doge idea inside the company, but it's actually very simple, which is there's an email inbox called friction openai.com >> and you could just email friction with any thing that's causing that's causing you to not get your job done. So, like, is there something slowing you down? Is there something that's missing? Is there something that's a problem? Anything that's there? And there's a person assigned to the company whose job is to triage everything that comes in there. And if there's something that seems like, oh, that's actually a pretty like legitimate source of friction, we should get we should eliminate that. That's going to help our people move faster and then they go and they move they they remove that friction. And it creates a culture of saying like, look, >> we are going to actively fight the bloat that comes in companies that grow really big and grow really fast >> by having a janitorial crew for a bureaucracy. I was like, "Oh, I kind of love that idea." So, >> yeah, that's brilliant. >> Give me a score. >> Two. Just two. Am I allowed to do two? >> Yeah. Yeah. Double thumbs up. All right. >> What a a Caesar would never do that, but that's okay. >> Yeah. , >> yeah, that's brilliant. >> Give me a score. >> Two. Just two. Am I allowed to do two? >> Yeah. Yeah. Double thumbs up. All right. >> What a a Caesar would never do that, but that's okay. >> Yeah. It's sort of it's sort of giving like Chuck-E-Cheese instead of Gladiator. [laughter] >> Uh, no. Two, because that is like less heroic and more systematic. Yeah, I'm on totally on board with that. >> All right. Next one is one bit communication. So, do you remember this app, Yo, from back in the day? >> Yeah. Hilarious. All the rage when you and I were 26 years old. So people, you don't you you'll only know if you know, which is back in the day in San Francisco, this app became the rage for like I want to say 30 days. >> Yeah. If there was like a one hit wonder like song list for Silicon Valley, that would be Chumba Womba. >> I get knocked down by Chumba Womba and then Yo are both on that list. >> Describe what Yo did. >> I think it was just an app where your friends downloaded and you clicked one button and it said yo to the other person. I think that's it. And then if they clicked the button it would say yo >> yo right back. All you could say is yo to each other. And so it seemed like the stupidest thing in the world. It was going viral for being almost so silly. And then Andre and Horowitz wrote a big check into them. And we were like what? You know one of the smartest investors invested in yo are you kidding me? It was like straight out of the TV show Silicon Valley. In fact, I think they they mocked this by with the bro app in the in the show whereas you said bro to each other. But I was like why? And Mark Andre wrote this blog post called one bit communication and he talked about how like um there are many forms of communication, right? You can write letters, you can write text messages which haveund whatever 40 or 160 character limit. You had beepers back in the day and a beeper was just a way to get your attention and you kind of had to know if I'm beeping you with this code that what that code means. And he goes, "The smallest form of communication would be a one bit communication, just a single bit back and forth, yo, but yo can mean a lot." And he wrote this like very like this like thesis on yo. And I just remember reading it and being like honestly kind of have convinced about this, you know, like a smart guy could really sell you anything. And he did. He sold me that. Well, I've learned that there's a couple CEOs who use one bit communication. So here's the first one. Seammens. The seaman CEO came out and he said, "Yeah, I have a very specific management system. My management system is this. You email me anything you want to talk to me about and I will respond with okay or no." That's it. I'm just going to say okay or no to your email. And if it requires more than that, then um you're going to come talk to me. And when do you come talk to me? We don't have weekly recurring like calendar meetings. We don't have like scheduling. If you need me, you'd come talk to me right now. And that's it. That's how I unblock everybody in the company. and I will not be the bottleneck. I'm simply going to give you permission rejection or if…

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