Seven Lessons I learned from Richard Branson
Rod got a full dose of what makes Virgin founder Richard Branson so successful in a recent visit to Necker Island.
Rod, Patrice and Richard Branson
My wife Patrice and I recently had the pleasure of visiting Necker Island in the British Virgin Islands. Adam Ghetti, the founder, Chairman and CTO of Ionic Security, organized the trip with a number of security industry CEOs and entrepreneurs.
Owned by Richard Branson, Necker is a solar powered island that can accommodate up to 30 guests. And it is a stunning 78-acre dream, combining the natural wonders of palm trees, clear blue waters and fine sand with the pleasures of exceptional food and entertainment.
Branson was in residence both on Necker and next door on Mosquito Island, and we met with him several times. Along with Adam and some of the other security pros, I was also given the opportunity to meet with the Virgin Group’s top management team, who were holding their annual planning retreat. We discussed cyber security, and it was a special treat to see Branson in action as a corporate leader and catalyst.
So what did I learn from Richard Branson?
- Stay active. As we approached Necker in our boat, we saw a bright red kite and a white haired surfer flying across the waters. It was Richard having a bit of fun. At 64, he remains healthy, vital and fit and takes breaks every day to kite, hike, walk or swim. He’s in great shape and that no doubt contributes to his positive attitude.
- Find a place where you love to live and work. Branson’s love for Necker is obvious. He chooses to live and work there, and of course the very favourable tax regime is picture perfect as well. Patrice and I also live in a beautiful natural setting – right on the ocean in Santa Cruz, California. Many people enjoy coming here for meetings, less than an hour from the heart of Silicon Valley and surrounded by the spectacular natural beauty of the beach and harbour. I used to feel some guilt about my strong preference for living and working there but Branson’s love of Necker and the productivity and creativity he generates there have eliminated that guilt.
- Cash flow is king. Richard lives right behind the Bali Lo pagoda unit we stayed in, separated only by some brush. I had assumed his home would be private and that no one would be allowed into his inner sanctum. Wrong. He will rent his personal home and bed to anyone willing to pay the price. He and his wife then move to a tiny room elsewhere on the island. That island, which he bought for just $180,000 in 1978, can generate around $500,000 per week in rental revenues and is often booked up years in advance. This focus on monetizing almost anything and everything is part of his Midas touch. It has clearly contributed to his success. At the same time, he demonstrates a healthy material detachment by renting out his own bedroom. He has no office on Necker and works wherever he wants – on his patio, in a veranda on the far side of the island, at the Kite Surfing shack or wherever he finds himself with his staff, guests and trusty iPad. His motto: I only need my phone and wallet.
- Create great experiences for others. Richard shows many aspects of genius. Beyond his absolute mastery of traditional marketing, what impresses me most is how, through creative physical experiences, he creates a deep sense of genuine engagement that makes people feel they are part of something special. I always “felt” that Virgin Airways was different: more modern, welcoming, clean, stylish and hip. Richard seems to be a kinaesthetic personality type, obsessed with creating special experiences for people. At Necker he takes this commitment to physical experiences to its most beautiful, natural, luxurious Caribbean extreme.
- Mix business and fun every day. From what I saw, Richard mixes fun and business every day. One day he challenged our security gang to a Hobie Cat sailboat race around Mosquito Island. It was good competition and great fun. I was an amateur captain and since I was out of date on sailing Hobies, I was thrilled just to stay afloat and come ashore with my crew intact. Richard appears to have a weakness for changing the rules at the last minute or even during a game, because he really likes to win. After one of his team’s boats capsized and got stuck on a reef, Richard deftly left his Hobie and joined the race motorboat with great fanfare and the opening of champagne bottles. When he slid into the Jacuzzi an hour later, he nonchalantly asked, so who won the race? I just smiled.
- Be gracious. I have never met a more gracious business leader. When a small group of us took a boat between the islands to meet with him and the Virgin management team, we were greeted at the docks with a warm smile and handshake. We walked to his home and were then greeted by the Virgin Group’s CEO, who stepped out of the meeting to thank us for coming and to ask us to relax while they completed their current session. Soon we were being served coffee and drinks and made to feel right at home. Richard came out as well to thank us for coming and for our patience, and assured us our meeting would begin soon. His graciousness was deep and genuine – a wonderful aspect of his personality, of course, but also a deeply held value of the entire group. It challenged all of us to become better, more gracious versions of ourselves.
- Be a Starfish leader. Richard lets others speak first. In the management meeting, Adam gave a solid presentation about his exciting new company, Ionic Security. Richard waited for almost ten of his team to ask questions before he joined the conversation, creating a space for genuine engagement. In deferring to others first, he learned what his team thought and their concerns about security, allowing him to offer better-informed comments and to probe the subject in greater depth. Richard’s management and leadership style is pure Starfish: he does not over-control his companies or their CEOs. When I asked the group CFO how they could improve security across their dozens of companies, he said, “We will not ask them to report into us on it. We just ask them to discuss it with us at events like this. We expect them to intelligently manage the risk and we don’t want to be bureaucratic or get in the way”. Decentralization and respect are two reasons why Virgin has amassed such an impressive portfolio of companies, united by their most important asset – a great brand.
I learned many things from Richard Branson that week. Focus on the upside, not the downside. Constantly search for new opportunities. Let operating managers mitigate the risk on the downside. These are just some of the lessons that I will carry forward in my own life, work and play after a week of outrageous fun and serious leadership lessons on Necker Island.
For more about Necker, see the video Billionaire’s Paradise – Inside Necker Island.
