#69 - Modesty
Ed Bernays, Peloton, and inevitability
I’ve had modesty on the mind this week.
Too much? Not enough? It’s a tricky balance.
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Ed Bernays
This week I read a biography of the colourful Edward Bernays. The father of Public Relations.
Bernays was the nephew of the great Sigmund Freud. He took full advantage of his famous Uncle and used Freud’s wisdom to pioneer an industry.
He’s a fascinating character.
Some of his stories defy belief. But then again, he’s the original PR man. So perhaps it's just good PR.
Most remarkable is the role he played in overthrowing the Guatemalan government. All for his client the United Fruit Company. The audacity…
But that’s not what concerns us here. What concerns us here is his view on modesty:
“Modesty is a private virtue but a public flaw.” - Bernays
Gosh.
I’d describe myself as someone who strives for modesty, if not always attain it. So this hits a nerve. I have to admit, it’s something I’ve often wondered. But, I’m still torn.
When considering Bernays’s view, one must remember who he was. Bernays was the orginial PR man. His reputation was his livelihood. His purpose. Everything hinged on people believing he was the best.
It doesn’t follow one should avoid public modesty at all costs. But it can backfire.
Peloton
It would be foolish to dismiss Bernays entirely. One person who won’t be is John Foley, the now former CEO of Peloton.
Peloton was the quintessential pandemic success story. Their sales sky rocketed. Anything looked possible. And then it didn’t. And just like that… The wheels came off.
Last week Foley stepped down as CEO. It followed a 84% fall in their stock price this year. The nail in his coffin was a damning presentation by one of their own investors. See it here. Brutal.
There’s many notable points in there. The £450m office lease in Manhattan, for example. Or Foley taking £100m off the table before the fall. But what caught my eye was the slide tearing apart his interviews. See below.
I shared the “not a very good manager” line with my cofounder Ben. He laughed, and remarked: Why would anyone say that?
I would definitely say that. I gulped.
Bernays would be horrified.
Inevitability
So where does that leave us?
Hearing about the irrepressible PR man and the exposed CEO might have us avoid modesty. But I’m still not sure.
I can’t help but feel sorry for Foley. People are quick to grab the pitch forks when things go wrong. But it wasn’t the modesty that lost him his job. He made some serious mistakes.
FOMO is the name of the game in startups. It has to feel inevitable. Self deprecation is endearing but it doesn’t raise the money to go big.
The founder must channel self-belief without it turning to self-adulation.
I used to think I didn’t matter what I said. I started this newsletter as a place to share my unfiltered thoughts. But the bigger we get, the more people are watching. I certainly need to take that into consideration.
But I don’t think it’s one or the other. There’s a balance to strike. Room for modesty and inevitability.
I’m learning to be a little less self deprecating during investor conversations. They need to know I’m serious. Joking about being clueless is hardly helpful.
But some modesty is crucial. It’s when modesty goes that cultures get toxics. That one takes themselves too seriously. That’s the beginning of the end.
I have one advantage there at least. It’s very hard to take myself seriously after the last 27 years. That might just be what saves me.
My Week in Books📚
The Father of Spin by Larry Tye
It’s a wonderful story- the life of Edward Bernays. Understanding Bernays gives a glimpse into the rampant misinformation today. Well worth a read.
I’ll be updating the books I’ve read this year here. Any recommendations? Let me know! See 2021’s books here.
A Final Thought 💡
“Perfect humility dispenses with modesty.”
― C.S. Lewis
I have used modesty, humility, and self deprecation, interchangeably in this piece. The above quote perhaps means I’m mistaken.
I hope you’ll forgive a recovering dyslexic.
gosh ceos behaving badly 🙊