Zhao Changpeng's 15 Principles

Author: CZ, Binance

Compiled by: Moni, Odaily Planet Daily

Binance CEO Zhao Changpeng has released some principles he follows, stating that not all principles have right or wrong; most are just his personal ways of doing things and viewing matters. Now, let's take a look at Zhao Changpeng's 15 personal principles.

1. General Principles

1.1 Fairness

This is a broad principle that covers many aspects of life, from personal relationships and work colleagues to business transactions. I truly believe in treating others fairly. Don't take advantage of others, and don't let others take advantage of you.

1.2. Build long-term, win-win relationships or transactions

Success is built on a long-term foundation. To maintain healthy long-term relationships, one must establish and engage in long-term win-win relationships. For a transaction to be meaningful, it must benefit both parties. Always ask what the other party gains; one-sided transactions won't last, and you'll always need to look for new (weaker) partners to collaborate with. I oppose short-term profits, which often have negative long-term effects and distract from focusing on long-term attention, with high hidden opportunity costs. Aim for longer-term, bigger wins.

1.3 Avoid "bad" relationships

Unethical/toxic people, those who do not share your values or mission, and those who waste a lot of your time. Let them go; remove them from your life.

1.4 Morality

Never cross moral boundaries. Always do the right thing when dealing with users, not the easiest thing.

1.5 Focus

Success does not come from how many things you do, but from your performance on a very few selected things. Focus allows you to work hard and eliminate distractions in life. For me, I don't have many hobbies. I exercise for 30 minutes every day, and I don't have many material possessions to maintain, after all, the cost of time is high.

1.6 Stay positive

1.7 Have a good mindset

1.8 Keep learning

2. Understanding the World

If a person wishes to achieve any degree of success, it is obviously important to understand how the world works. Do not hold a black-and-white attitude; the world is diverse, and many people's views of the world are overly simplistic.

3. Decision-Making Framework

Making the right decisions is a skill that can be practiced. I have gone through this mental decision-making framework, whether for quick decisions or well-considered ones.

3.1 Primary Principles

If a decision touches on one of the core principles, then follow those principles; it's simple. Otherwise, go through the decision-making framework.

3.2 Small vs. Big

The first thing to determine is the scale or impact of the decision.

Small decisions (like where to eat or small investments) should be made quickly or delegated, then move on.

Big decisions (like major sponsorships, investments, etc.) require data collection, discussion in a group, and then sleep on it for 24 hours.

3.3 Reversible vs. Permanent

Some decisions are reversible, such as developing new product features. You can stop at any time and handle other things, or turn it off after completion. There will be some sunk costs in time and energy, but they are limited.

Some decisions are not easily reversible, such as large upfront payments for sponsorship deals, team integrations, mergers of large companies, etc.

3.4 Do I have expertise?

If this is something I am familiar with or have background information on, like technology or products, I can make decisions faster. In areas I am less familiar with, like marketing, I either delegate or involve other experts, or make decisions more cautiously.

3.5 Enough information

The last question to ask is whether I/we have enough information. For small decisions, I don't need much information. For big decisions, we should try to gather the necessary information. But ultimately, we often have to make decisions with limited information.

In the end: making a decision and then executing it is usually much better than not making a decision.

4. Team and Organization

4.1 Team over self

Performing well individually in a poorly performing team rarely yields satisfactory results for the individual.

4.2 Frequent reshuffling

Don't let the organization become stale.

4.3 Internal competition is good

There will always be competition (external), and some internal competition is good, just on a professional level.

4.4. Orderly chaos is a structure

This is a bit counterintuitive to explain. Let's look at the two extremes of chaos and structure. Complete chaos is bad, and that's easy to see.

4.5 Regular local team building

Once a month should be the goal, but due to scheduling and other reasons, it often ends up being once every two months.

4.6 Give feedback

Whenever and wherever, I provide direct feedback in one-on-one discussions or large groups.

4.7 Not so much verbal praise

If you do well, you might hear others say "good job, well done, etc.," but I don't have that much (praise). Instead, when you do something wrong, if I see it, you are likely to hear criticism.

4.8 Reporting up and rumors

Reporting up is a normal part of business, and there are right and wrong ways to do it.

Rumors happen when you complain to me about someone else without telling the other party. Rumors are bad, and I don't deal with them.

The right way is to schedule a three-way meeting with me and the person you want to complain about, so I can hear both sides.

4.9 Get out of the low point

I believe in the "bottom-up" principle. In my experience, high performers like to work with other high performers. When a high-performing team collaborates, the work itself becomes addictive. When you have underperformers in your mix, everything gets destroyed. Move the bottom performers out.

5. Recruitment

Hire the best people, always.

5.1 Passion

Passion is one of the most important factors I look for.

5.2 Hire people with "hunger"

5.3 Doers vs. talkers

Hire doers who can express themselves, not talkers who do nothing.

5.4 Purposeful hiring

Every new hire must have clear responsibilities.

5.5 Don't hire people focused on titles

5.6 Don't hire people overly focused on salary and compensation

5.7 If you have doubts about a candidate, do not hire

6. Leadership Style

6.1 Don't try to motivate those who lack self-motivation

6.2 Don't micromanage

6.3 Assess whether the person meets the standards during the interview, and only look at work performance after onboarding, not past qualifications

6.4 Work hard, uphold our values, and lead by example

7. Goals, OKR/KPI

7.1 Don't take goals too seriously

My biggest problem with goals is: 1. Goals are never accurate or scientific. In the crypto industry, market conditions change too quickly. 2. Goals take too much time (costly) to discuss.

8. Business Transactions

8.1 Keep transactions simple

8.2 Say no early

Too many people waste too much time on useless "partnership" discussions. When your mental space is spent on these useless discussions, you won't consider useful partnerships.

8.3 Don't have exclusivity

Don't sign exclusive contracts. Don't lock yourself in. Don't expect others to be locked in.

8.4 Have termination clauses

There should always be termination clauses in contracts.

8.5 Always assume limited liability

8.6 Treat all customers equally

9. Passive BD, pursuing low-hanging fruit

In life, I usually take a passive attitude towards BD (business development). People often don't understand this aspect of me or how it works. Don't confuse this with passion. I am passionate about what I/we do, but I am quite passive in how I approach others, business partnerships, etc.

But I won't spend too much time chasing giants or big companies, teaching them what Crypto is.

10. Work Style - Don't Waste Time

Time is a more limited resource than money; don't waste it. When you start to value time, money will come.

10.1 Say "no" early and often

The most effective tool for saving time is to say "no."

11. Communication

11.1 Be concise and direct

Always clarify your intentions or goals; be clear about what you want.

11.2 Keep communication records concise

For me, I don't want to see more than:

3-5 key points for a 15-minute meeting

Half a page to one page of minutes for a 30-60 minute group meeting

5 pages (at most) for MBR or QBR (quarterly business review)

No fancy PPTs.

11.3 Use the most effective methods/tools whenever possible

11.4 Avoid communication chains that involve passing messages; talk directly to the source

11.5 Use IM for synchronization or work coordination

11.6 Make your point in one message instead of sending multiple messages

11.7 Don't argue online

11.8 Excessive communication is bad

11.9 Ask questions based on the context

12. Meetings

12.1. Keep it short

Meetings should be as short as possible; 5 minutes is best.

12.2 Start meetings on time

12.3 Get straight to the point

12.4 Discuss issues with no more than 10 people

12.5 Blacklist those who don't speak

12.6 Write down key points before the meeting

12.7 Don't use PPT

12.8 Don't attend "introductory" meetings

13. Products and Delivery

13.1. Focus only on scalable products

13.2. Focus on users

Having users is key. Everything else is less important. Without users, there is no value. Treat them well.

14. Public Relations

14.1 Don't do large-scale publicity right after a product launch

14.2 Don't casually sign memorandums of understanding or letters of intent

14.3 PR cannot be delayed; release it promptly when ready

14.4 Respond to journalists in a timely manner

14.5 Respond quickly to negative news

15. Rest, Stay Calm, and Relax

15.1 Sleep

I recommend finding your own sleep pattern, which will give you the most energy. For me, I sleep 5-6 hours at night and usually take a 30-45 minute nap in the afternoon.

15.2 Stay calm

15.3 Relax and have fun

I am as calm as most people; I exercise a little every day, and I participate in some sports. I enjoy snowboarding, watching some movies (usually after recommendations from others). When I visit new cities, I do some sightseeing activities and relax with friends, dinner, drinks, etc.

I don't like luxury goods, cars, jewelry, etc., although my lifestyle may be overestimated by most people. I travel often and stay in nice hotels. I get invited to fancy parties (which I usually don't like).

I love gadgets, phones, cameras, drones, and even smartwatches (many of which I have never used the features).