The Art of Being Unreasonable

1. Embrace Unreasonable Thinking for Extraordinary Success

The reasonable man adapts himself to the world. The unreasonable one persists in trying to adapt the world to himself. Therefore, all progress depends upon the unreasonable man.

Unreasonable thinking is key. Eli Broad argues that being labeled "unreasonable" has been pivotal to his success across diverse fields. This involves setting ambitious goals, defying conventional wisdom, and possessing the confidence to disregard naysayers. It's about having outsized ambition, discipline, energy, and focus.

Four careers of impact. Broad's journey spans accounting, homebuilding (KB Home), retirement savings (SunAmerica), and philanthropy. Each career demanded an unreasonable approach, leading to significant achievements, including building two Fortune 500 companies in different industries.

Silencing conventional wisdom. The core message is to challenge the status quo and ignore the voices that limit potential. By embracing unreasonable thinking, individuals can achieve goals others deem unattainable, driving progress and innovation.

2. "Why Not?" - A Catalyst for Innovation and Change

The questions you’re willing to ask when others think they have all the answers are doors to discovery.

"Why not?" unlocks potential. This simple question is a powerful tool for challenging assumptions and opening doors to new possibilities. Children instinctively ask it, but adults often lose this habit, accepting the status quo without question.

From personal to professional. Broad's life is filled with examples of "Why not?" moments, from changing the pronunciation of his name to starting his own homebuilding company. These moments demonstrate the power of questioning limitations and pursuing unconventional paths.

A daily mantra. Asking "Why not?" should be a routine practice, not just reserved for big decisions. It helps to identify opportunities for improvement, sharpen convictions, and break down prejudices. It's about reframing facts and considering possibilities others overlook.

3. Challenge Conventional Wisdom to Unlock New Possibilities

Reasonable people treat conventional wisdom with respect. Those of us who are unreasonable regard it as an expression of the herd instinct.

Conventional wisdom stifles innovation. Broad views conventional wisdom as a barrier to progress, advocating for unconventional insight as the foundation for innovation. Successful businesses often begin by bucking established norms.

No basements, no problem. Kaufman and Broad's initial success stemmed from challenging the conventional wisdom that Detroit homes needed basements. By eliminating basements, they built homes faster and sold them for less, targeting first-time buyers.

Constant innovation is essential. Innovation should be a continuous process, not a one-time event. Companies must constantly evolve their products, services, and operations to stay ahead of the competition and meet changing customer needs.

4. Diligent Homework: The Bedrock of Informed Risk-Taking

Research—and using what you learn from it to analyze every situation—is what separates being unreasonable from being irrational.

Shortcuts are dead ends. "Get rich quick" schemes are often traps. Success requires hard work and meticulous research. The author's early experience with horse racing taught him the value of thorough investigation over relying on luck.

History provides clues. Studying the past is crucial for understanding the present and anticipating the future. Analyzing historical trends and learning from others' successes and failures can inform better decision-making.

Core competency vs. complacency. Don't mistake comfort for competence. Unreasonable thinking challenges assumptions and encourages exploration beyond familiar territory. The acquisition of Sun Life Insurance Company, a departure from homebuilding, exemplifies this principle.

5. The Strategic Advantage of Being a Smart Follower

Let someone else go first and get the arrows in their back.

Second movers can thrive. While the first-mover advantage is often touted, being a smart follower can be equally beneficial. Second movers can learn from the mistakes of pioneers, adapt to evolving markets, and offer better value.

Following Levitt to France. Kaufman and Broad's expansion to France after Levitt and Sons had established a presence demonstrates the value of following a successful first mover. This allowed them to capitalize on an existing market and avoid initial pitfalls.

Innovation is key, regardless of order. Whether first or last, continuous innovation is essential for long-term success. Markets evolve, and companies must adapt to changing customer needs and technological advancements.

6. Time Mastery: Work Smart, Rest Well

Time is the most valuable thing you have.

Time is a precious resource. Broad emphasizes the importance of controlling one's time and avoiding distractions. Being stingy with time is key to achieving more while still getting adequate rest.

Know what truly matters. Identify the crucial tasks that drive success and prioritize them above all else. Delegate or eliminate less important activities to focus on what truly makes a difference.

Discipline and flexibility. Setting priorities requires discipline but also adaptability. Circumstances change, and priorities must be adjusted accordingly. Being unreasonable helps to enforce priorities and avoid time-wasting activities.

7. Youthful Energy and Vision: A Potent Combination

I always bet on youth over experience for experience’s sake.

Value bright, young talent. Broad emphasizes the importance of hiring bright, young individuals with ambition and drive. He often recruited from top law and business schools, recognizing their potential for growth and innovation.

Qualifications are essential. While youth is valuable, qualifications still matter. Look for candidates with strong educational backgrounds and a willingness to learn and adapt.

Challenge and reward build loyalty. To retain young talent, provide opportunities for growth, challenging work, and high expectations. Tying compensation to company performance through stock options is also a powerful incentive.

8. Calculated Risk: The Art of Prudent Gambling

Never bet the farm—Or Even Half the Farm.

Risk is inherent in business. Broad acknowledges that risk is unavoidable but emphasizes the importance of managing it carefully. He advocates for taking calculated risks based on thorough research and analysis.

Assess potential losses. Before taking a risk, ask yourself: What do I have to lose? And what's the worst that can happen? Understanding the potential downside helps to make informed decisions.

Diversify to mitigate risk. SunAmerica managed risk by diversifying its portfolio and limiting exposure to high-yield bonds. This approach allowed them to take on risky investments without jeopardizing the company's stability.

9. Persuasion and Delivery: The Keys to Achieving Results

I prefer to think that I keep the ultimate goal in mind, and I’m impatient with anything that gets between where we are now and where we need to be.

Persuasion is essential. While Broad is known for being direct, he recognizes the importance of persuasion in achieving goals. This involves understanding the other party's interests and crafting a compelling pitch.

Make sound promises. When seeking support, offer something in return and ensure that promises are kept. This builds trust and strengthens relationships.

Perfect your pitch. Clearly articulate your vision and demonstrate your commitment to the project. Highlight the benefits for all stakeholders and emphasize the potential for positive impact.

10. Leverage: Amplifying Resources for Maximum Impact

If you have ever bought anything on credit, you’ve used leverage.

Leverage amplifies resources. Leverage involves using borrowed capital, other people's efforts, or strategic partnerships to achieve more with less. It's about extending the power of your resources.

Mortgages as leverage. Broad acknowledges the reluctance to take on debt but recognizes mortgages as a valuable tool for wealth creation. They enable individuals to purchase homes and build equity.

Philanthropic leverage. The Broad Foundations use leverage to maximize their impact, such as issuing tax-exempt bonds to fund museum construction and partnering with government agencies to support stem cell research.

11. Marketing Mastery: Connecting Value to Customers

Know Your Customers and What Moves Them.

Know your customer. Understanding your target audience is crucial for effective marketing. Identify their needs, preferences, and motivations to tailor your message and offer the best value.

Focus on value. Customers always seek value, regardless of their income level. Provide the best product or service at a price point that is advantageous to both the buyer and the seller.

Market like a major player. Even with a limited budget, market your product or service as if you were a major player. Use creative strategies to maximize your reach and create a strong brand image.

12. Investing Wisely: Diversify and Seek Expert Guidance

Don’t Fear Risk, but Don’t Take One if You Don’t Have to.

Don't invest alone. Broad advises against individual stock picking, recommending instead to seek guidance from a qualified financial advisor. Most people lack the time and expertise to make informed investment decisions.

Diversify your portfolio. Diversification is essential for mitigating risk. Spread investments across various asset classes to protect against market volatility.

Volatility is inevitable. Accept that market fluctuations are unavoidable. Maintain a long-term perspective and avoid making emotional decisions based on short-term market movements.

13. Negotiation Prowess: Fairness, Preparation, and Emotional Control

In a Good Negotiation, Everybody Wins.

Fairness is paramount. Successful negotiations are based on fairness and mutual benefit. Avoid trying to exploit the other party or gain an unfair advantage.

Preparation is key. Thoroughly research the subject of the negotiation and understand the other party's interests and motivations. This will enable you to make informed offers and counterproposals.

Maintain emotional control. Avoid getting emotional during negotiations. Stay calm, rational, and disciplined to make sound decisions and avoid impulsive actions.

14. The Power of Logic: Reason Your Way to Success

A Logical Idea Is One That Makes You Say, “Why Didn’t I Think of That?”

Logic is essential. Broad emphasizes the importance of logical thinking in decision-making. This involves analyzing facts, drawing reasonable conclusions, and sticking to those conclusions even when others disagree.

The Broad Institute example. The creation of The Broad Institute exemplifies the power of logical thinking. The idea of bringing together researchers from different disciplines to collaborate on genomic research was a logical solution to a complex problem.

Patience is sometimes logical. Even sound logic can't always overcome immediate obstacles. Sometimes it's necessary to bide your time and wait for the right moment to pursue an idea.

15. Hound Dog Tenacity: Relentless Pursuit of Goals

Whether or Not You Succeed, You Have to Keep Hunting.

Be a hound dog, not a kennel dog. Broad encourages readers to be proactive and persistent in pursuing their goals. Don't wait for opportunities to come to you; go out and hunt for them.

Go after big game. Set ambitious goals and don't be afraid to pursue them relentlessly. Even if you don't achieve everything you set out to do, you'll likely accomplish more than you thought possible.

Know when to quit. While persistence is valuable, it's also important to know when to cut your losses and move on. Don't waste time and resources on projects that are clearly not going to succeed.

16. Motivating Through Challenge: Inspire Excellence in Others

High Expectations and Shared Challenges Create Loyalty.

Challenge people to excel. Broad believes in motivating people by challenging them to reach their full potential. Set high expectations and provide opportunities for growth and development.

Lead by example. Demonstrate your own commitment to excellence and hard work. This will inspire others to follow your lead and strive for their best.

Reward achievement. Recognize and reward employees for their accomplishments. This can include bonuses, promotions, or simply acknowledging their contributions.

17. Competition as a Catalyst: Driving Innovation and Growth

Just Because There’s a Winner Doesn’t Mean There’s a Loser.

Competition benefits all. Broad views competition as a positive force that drives innovation and growth. It encourages individuals and organizations to strive for excellence.

Architecture as pure competition. Architectural competitions exemplify the benefits of competition. They push architects to create innovative designs and inspire jurors to raise their own expectations.

Concept over cost. In certain fields, such as architecture, it's sometimes necessary to prioritize concept over cost. This can lead to the creation of truly exceptional and transformative works.

18. Respect Over Love: Prioritizing Principles and Integrity

It’s Better to Be Respected Than Loved.

Respect is more important than love. Broad argues that being respected is more valuable than being liked. Respect is earned through integrity, fairness, and a commitment to achieving results.

Disagreement is healthy. Encourage respectful debate and disagreement within your organization. This can lead to better decision-making and more innovative solutions.

Stick to your principles. Don't compromise your principles for the sake of popularity. Let go of power before you let go of principles.

19. Giving Back: Philanthropy as a Moral Imperative

Everyone Can Be a Philanthropist—Not Just the Rich.

Philanthropy is for everyone. Broad emphasizes that philanthropy is not just for the wealthy. Anyone can give back to their community through time, talent, or resources.

Look for the place to make a difference. Don't just give money away; identify areas where your contributions can have the greatest impact. Apply metrics to measure the effectiveness of your philanthropic investments.

Start giving now. Don't wait until you're wealthy to start giving back. Start small and gradually increase your contributions as your resources grow.

20. Education Reform: A Call to Action for Systemic Change

The World Is Moving Forward, but American Education Is Stagnant.

Education is in crisis. Broad argues that America's K-12 public schools are in a state of crisis. Student achievement is lagging behind other industrialized nations, and disparities persist between wealthy and poor students.

Never let a crisis go to waste. Use the current crisis in education as an opportunity to implement systemic reforms. Challenge assumptions, question existing practices, and start afresh.

Focus on leadership and management. The key to improving public education is to improve management and find talent. Train effective school district leaders who can support teachers and students.

21. The Unreasonableness of Art and Artists: Passion and Perspective

Pursuing a Passion Sometimes Means Casting Aside Your Business Sense.

Art enriches life. Broad emphasizes the importance of pursuing passions, even if they don't make financial sense. Collecting contemporary art has enriched his life and broadened his perspective.

Do your homework. Even for hobbies, knowledge enhances enjoyment. Research artists, study their work, and understand their place in art history.

Share your passion. The most fulfilling part of pursuing a passion is sharing it with others. Make your art collection accessible to the public and support artists in their creative endeavors.

22. Reflections: Lessons Learned and a Legacy of Impact

Don’t Let Others Define Your Failures or Your Successes.

Solitude can be a gift. Broad reflects on his solitary childhood and how it shaped his independent thinking and decision-making skills.

Work-life balance is a choice. Broad acknowledges the challenges of balancing work and family life. He encourages readers to find their own balance, even if it means making difficult choices.

Define your own success. Don't let others define your failures or successes. Focus on your own goals and values and strive to make a positive impact on the world.

Last updated: April 23, 2025