You’ve got to think about your reputation like it’s an asset that can give you compounding returns over time.
So what’s an asset?
It’s something of value that you own, control, or can benefit from.
And compounding returns are when the gains you get from an asset start producing more gains of their own.
So for example…
Let’s say you’re in a work environment and you do a good job, this is how your reputation would compound over time.
YOU DO GOOD WORK
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THAT GOOD WORK BUILDS TRUST
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THAT TRUST CREATES OPPORTUNITIES FOR YOU
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THOSE OPPORTUNITIES GIVE YOU CHANCES TO DELIVER MORE RESULTS
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MORE RESULTS STRENGTHEN YOUR REPUTATION FURTHER
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THIS CREATES MORE TRUST FOR YOU
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WHICH AGAIN CREATES EVEN MORE OPPORTUNITIES FOR YOU
Position yourself before you need the position.
A lot of people wait until they need something before they start looking for it.
It's much easier to prepare for something than it is to scramble for it.
So the earlier that you prepare, the more options you usually have.
When you’re learning about strategy, power and human behaviour, there are a lot of excellent books that focus directly on those subjects and explain them well.
But some of the lessons I’ve connected with the most, and that have stayed with me the longest, have come from books where those subjects were not the main focus.
I’ve found them hidden in stories like The Wager, The Medici and Dingane. Small insights and quiet pieces of wisdom that would be easy to miss if you were not paying attention.
I think sometimes the best lessons are found around the edges, in places where they are not the main point of the lesson or story.
But with a little curiosity and critical thought, you start to see them everywhere.
People don't always avoid hard truths because they don't believe them.
Sometimes they avoid them because accepting them would force them to change.
And for a lot of people change can be much harder than staying where you are.
There are a lot of different forms of power
But these are the five I'd say you'll come across most often:
🧠 Knowledge / Informational Power = The control of knowledge, expertise, information, or data.
💰 Economic Power = The control of money, assets, and resources.
🤝 Social / Influence Power = The ability to persuade, inspire, or mobilise other people.
🏛️ Political Power = The ability to make, influence, and enforce decisions that affect society.
⚔️ Military / Coercive Power = The ability to use, or threaten, force to achieve an outcome.
Of all of these I’d argue that Knowledge and Informational Power is the most powerful because can create wealth, win wars, influence politics, and shape peoples opinions.
The difference between hard power and soft power is how they influence people.
Hard power relies on force, pressure, or coercion. Soft power relies on attraction, persuasion, and relationships.
With one, people cooperate because they have to. With the other, people cooperate because they want to.
Some loyalty is conditional.
It lasts while people's interests, incentives, or circumstances stay the same.
When those things change, their loyalty can change too.
How you position yourself before you make a power move is really important.
Because where you're positioned will influence how much pushback you get and what options become available to you.
Control is only one kind of power. Another is having enough options that you're not stuck with just one choice. The more options you have, the more freedom you have to decide what's best for you.
Sometimes leadership means stepping forward.
Sometimes it means knowing when to let someone else lead.
Because not every situation calls for you to be the one in front.
Knowing when to support, defer, or follow can be just as important as knowing when to take charge.
Don't Show Your Hand Too Soon!
Sometimes it's better to wait, watch, and listen before showing your position.
Because once people know where you stand, they can consciously or unconsciously change how they act around you.
And once they do that it can make it much harder to understand what they really think, want, or intend to do.
It's not always easy to leave a harmful group when you start noticing the red flags.
Because for a lot of people, leaving means losing relationships, part of their identity, or even their sense of purpose.
For a lot of people, that can feel scarier than starting again.
The point is:
Sometimes people stay because leaving feels like a bigger loss than staying.
There isn't an empire or corporation that has unlimited resources.
The leaders within those power structures know and understand that they have to strategically and carefully decide where to invest their time, money, people, and materials to achieve their objectives.
Every choice comes with an opportunity cost.
A strong argument doesn't always win.
You can have the facts, the evidence, and the logic on your side and still lose.
Because decisions aren't always made by the person with the best argument.
Sometimes they're made by the person with the most power.