This is a ringing indictment of our global economic system, which is failing the vast majority of humanity. Our world is richer than ever before, but virtually all of it is being captured by a small elite.
Animated Book Review Playlist: http://bit.ly/Psychbooks
During times of peace, executives can move more slowly and ensure that everybody is on board with key decisions, he said during the June meeting, according to people familiar with the remarks. But with Facebook under siege from lawmakers, investors and angry users, he needed to act more decisively, the people said... The 34-year-old CEO believes Facebook didn’t move quickly enough at key moments this year and increasingly is pressing senior executives to “make progress faster” on resolving problems such as slowing user growth and securing the platform, said people familiar with the matter. Mr. Zuckerberg also at times has expressed frustration at how the company managed the waves of criticism it faced this year... On Friday, that tension was on display when, during a question-and-answer session with employees at Facebook’s headquarters in Menlo Park, Calif., he blasted a fresh round of critical news coverage as “bullshit,” according to the people familiar with the remarks.
One employee at the session asked if Facebook could deter leaks by publishing an internal report about how frequently offenders are found and fired. Mr. Zuckerberg said Facebook does fire leakers, but the root cause was “bad morale” perpetuated by attacks in the media... He believes this tougher management style is necessary to tackle challenges being raised both internally and externally, according to a person familiar with his thinking... Mr. Zuckerberg’s new posture could trouble those who feel his “move fast, break things” mantra from Facebook’s early days contributed to many of the company’s current problems. It also has led to confrontations with some of his top reports, including Ms. Sandberg, who has long had considerable autonomy over the Facebook teams that control communications and policy... This spring, Mr. Zuckerberg told Ms. Sandberg, 49, that he blamed her and her teams for the public fallout over Cambridge AnalyticaMs. Sandberg later confided in friends that the exchange rattled her, and she wondered if she should be worried about her job.
.. Mr. Zuckerberg also has told Ms. Sandberg she should have been more aggressive in allocating resources to review troublesome content on the site
.. The heads of some other key Facebook units didn’t survive conflicts with Mr. Zuckerberg.
.. The co-founders of WhatsApp likewise left after disagreements with Mr. Zuckerberg over how to generate more revenue from the messaging-service
.. More recently, Mr. Zuckerberg forced out Brendan Iribe, co-founder of Oculus VR, in part because of a disagreement about the future of the Oculus Rift virtual-reality headset
.. Facebook remains hugely profitable, with net income of more than $5 billion in the third quarter, but its margins are under pressure in part because of its increased spending on security.
.. Mr. Zuckerberg has said Facebook is in the midst of a three-year turnaround ending in 2019 to strengthen its defenses against the risks posed by having an open platform.
.. All told, about a dozen senior or highly visible executives disclosed their resignations or left Facebook in 2018. In May, Facebook announced a major reshuffling of top product executives in a way that helped free up Mr. Zuckerberg to oversee a broader portfolio within the company.
.. This turmoil at the top of Facebook has made it difficult for the company to execute on some product decisions and shore up employee morale, which has been sinking over the last year along with the stock price, which has fallen 36% since its peak. Many employees are frustrated by the bad press and constant reorganizations, including of the security team, which can disrupt their work, according to current and former employees.
.. Scrutiny of Facebook has only escalated in the past week after the New York Times reported its use of opposition-research firms tasked with exposing critical information about Facebook’s detractors, including one called Definers Public Affairs. Ms. Sandberg and Mr. Zuckerberg both said the decision to employ the firm was made by Facebook’s communications officials.
Bethany McLean—and the first ever Rewrite Q&A! She discusses how she reported her article and tells the guys how she found sources inside of Microsoft, how she landed interviews with the likes of Bill Gates, and why she rarely records her interviews.
.. Burt Helm: This is a massive company and a sensitive story. It’s not like you can just phone up the board and get a bunch of candid interviews about the search. So how do you start a story like this?
Bethany McLean: This was honestly one of the hardest stories I’ve ever done, if not the hardest, for a couple of reasons. First of all, Microsoft people don’t talk. And second, I’m just not a technology reporter. I’d never written about Microsoft before. I frankly didn’t even understand their business when I started. If you would ask me what Microsoft’s business was, I would have been like, “Computers?” It was enormous amount of work to get up to speed.
.. It wasn’t just about the board and about the difficulties in finding a CEO, it became really about Ballmer’s legacy, about what actually happened inside Microsoft, about the feud between him and Gates. It became a much richer human interest story as I worked on it.
.. Because after years of working in business journalism, I have enough sources who know things that I can call them up — in this case it was investors — and say, “Do you have somebody I can talk to about Microsoft, who can just help me really understand it?”
.. They may not be willing to state to you on the record or to be quoted, but they can steer you in the right direction and give you a good overview of what the story actually is, and then you try to work your way in from there.
.. Analysts and institutional investors, that sort of thing — they are a source that people who haven’t been business journalists sometimes overlook. Those people can then offer a roadmap. Then you can read the 10-K, and the terms are familiar. That’s how I usually start.
.. the most sensitive question you could possibly ask: “Are Gates and Ballmer really having a feud?”
Max Chafkin: How do you get to that question?
Bethany McLean: I generally start with questions about the business. That offers a way into conversations that shows that you’re serious and you’re not just trying to write a hatchet job or a personality play. And I never do that as a pretext—it’s genuine. My stories always have kind of a business backbone to them. The analytical backdrop helps explain the human nature part of the story.
.. Burt Helm: By doing that you meet them on the topics they care about. ..
.. People may not talk to you about their feelings about Steve Ballmer, but they may talk to you about their feelings about what Steve Ballmer did or didn’t do for Microsoft. Because the company matters a lot to a lot of people, right?
.. Burt Helm: I was fascinated by the part of the story where Ballmer says, “The low point of my career as CEO was Longhorn.” But Longhorn, of course, was the thing Bill Gates ran.
Bethany McLean: Right. It’s a confessional, but it’s a confessional with an edge.
.. Burt Helm: How far in your reporting were you when you got these guys to be so candid?
Bethany McLean: You have to be a long way in. I genuinely believe that there is no way to get people to open up to you if you don’t know a lot already. I mean if you know the story already and you can say, “Well, this is what I know,” people are far more likely to say, “Well, that’s right or that’s wrong.” If you don’t even know enough to ask the questions, there’s no way people are going to help you.
.. If Ballmer had picked up the phone the first time I tried to get to him, I probably wouldn’t have asked as good of questions as I did by the time I did.
.. I have this basic rule about investigative journalism that people are either inclined to talk to you or they’re not. If they’re really inclined not to talk to you they’re really not going to. The little bit of wiggle room is knowing a little bit more. The people in the middle of the road can be convinced to talk to you because you know something.
Max Chafkin: I’m imagining spending hours trying to craft the perfect email to Ballmer. It sounds like you’re more fatalistic about the result.
Bethany McLean: Well, I spent an enormous amount of time on the email and I tried to be as thoughtful as I could be, but I am somewhat fatalistic about the result.
.. I feel like I am always dead honest. I would never say, “Well, of course, you’re going to like the story if you talk.” The absolute worst thing for me would be for anybody to say they were misled. I genuinely want to understand your point of view—I like nuance, I’m not a black-and-white person. I want to paint an accurate, nuanced picture of what actually happened rather than this black-and-white, good-guy-bad-guy thing. That tends to dominate when people don’t give their side of the story.
.. So I say instead, “I’ll do my best to be fair whether you talk to me or not. But if you talk to me, I think it’s going to help. I think then there won’t be any surprises for you and I think I’ll understand where you’re coming from.”
.. Max Chafkin: Tell us about Microsoft’s PR. They’re probably not super-jazzed about a story about how the Microsoft board is having a difficult time replacing its CEO.
.. Bethany McLean: I did. At first they were very nonresponsive. They became slowly more responsive over time as I tried to show that I was serious about doing a nuanced and fair piece. I think that they were great example of how to do PR in the sense that they realized the story was going to happen, and what made the most sense was to cooperate, because the new CEO Satya Nadella has a great story. They realized what was in their interests, and they did it. There was total fair play. I never felt like I was lied to. I think that it was actually sort of a model example of how to do PR in a weird way.
.. a lot of detail that ended up being cut because we had this whole other story to write as well. So in the end, I think it was indisputably the right thing for them to do.
.. Max Chafkin: It kind of gives you a sense that the power dynamics are a little bit confused. I mean just the fact that they’re putting the CEO and the founder together in the room…
Bethany McLean: But you can learn a lot from that. Why would you ever say no to that? It was a) the opportunity to meet Bill Gates and b) the opportunity to watch him and Nadella together, and see what they say and what they don’t. I thought it was fascinating.
.. Still, it was very scripted, right? I had half an hour and so you have to be really careful with your questions. Gates is incredibly media-trained at this point. He knows how to give the non-answer and he knows how to keep the non-answer short so he doesn’t ramble. I knew he was going to be a hard guy to get anything out of.
The most interesting moment to me in the interview actually came when I started asking well, “Who’s in charge, what happens if you disagree?” Gates gave this example and the language is in the story where he says, “Well, if I want X number of people on a team and Satya doesn’t want it, I bet I’ll get it—but it’s his decision.” To me, that was one of those things that a very close reader of the story would be like, hmm, that’s interesting.
But I also thought that Nadella knows how to work with Bill Gates. He really does. He knows how to manage this guy. It was fascinating to see that —to watch him differ when it was better to differ and not differ when it wasn’t. He’s a guy who knows how to manage people, which I think is a compliment. I don’t think that’s an insult.
.. Bethany McLean: I try to be general but pointed with questions so that I try not to have an idea in my mind of what the answer might be. I try to start out with questions that are business-oriented, I guess, so that people see that I know and care about the business aspect of it. You just get a feel for people and what they want to talk about, and then you try to move in the direction that they want to talk about. I don’t tape my interviews anymore for various reasons, but I used to tape them and I would listen to myself and listen to the number of times I interrupted.
I try really hard not to say anything. I feel like the less I say in an interview, the better.
.. Max Chafkin: Why don’t you tape interviews?
Bethany McLean: I don’t tape them because once I started doing serious investigative work where you had to beg people to talk to you, the last thing you want to do is sit down and be like, “By the way, can I turn on tape recorder now?” Even over the phone—when you live in Chicago you have to tell people you’re taping them. So if you really work to get somebody to talk to and then the first thing you say is, “Can I turn on my tape recorder?” It’s off-putting.
.. Max Chafkin: So how do you take notes? Do you have a classic reporter’s notebook?
Bethany McLean: My pad is bigger than a reporter’s notebook because it’s easier for me on a bigger sheet of paper. I’ve developed my own forms of shorthand so that words people say a lot can be notated with just a symbol.
Burt Helm: So what’s an example in this one?
Bethany McLean: So Microsoft might be M or board of directors might be BD just so that I can very quickly note.
.. Max Chafkin: You have half an hour with Bill Gates and Nadella and you’re not going to tape that? Come on!
Bethany McLean: So that’s an example of a really bad call on my part. Had the Microsoft PR guy not taped the interview, I would have been in trouble because they talk fast. They were both lightning fast and I would not have gotten down half of what they said. So it was actually one of those moments where I was like, this needs to be a flexible strategy. If the Microsoft PR guy hadn’t taped it and sent me the transcript of the interview, I would have had a quarter of it.
.. I wrote a story with Bill Cohan for Vanity Fair on Jamie Dimon and JPMorgan and Bill taped all his interviews, and I was struck by the quality of his quotes versus mine. He had more context and sort of rhythm in his quotes than I did.
.. Max Chafkin: I thought you were going to say he was bogged down with all these hours of tape and I knew I’d made the right decision.
Bethany McLean: No, no. He’s actually got a great system where he pays to have people transcribe them and that’s when I was like, you know, maybe I need to change that. But then every time I think about being on the phone with somebody and say, it feels incredibly awkward. Maybe I’m overly sensitive. I don’t know.
.. Max Chafkin: I think it’s all about your ability to—for me, anyway, to connect with the person. Sometimes I find taking notes can be obtrusive because it forces you to scribble extra hard when they say something sensitive.
Bethany McLean: Here’s the weird thing that’s made me anti-taping. I actually can’t stay with the interview when I’m not taking notes. If I’m taking notes, my focus is right there. I guess the other way I think about it, there are some people in a story that you want to quote at length and in this case, with Gates and Nadella, I should have taped. But in most cases, especially when you’re doing a long form story where nobody is on the record and you’re going to talk to a hundred people for 7,000 words story, or maybe not a hundred but 30 or 40, you’re not going to quote most of them. So wouldn’t you rather not even take the risk of them giving you filtered information?
But I’m also meticulous about going back to people and saying, even on background, here is the quote I want to use from you, here’s how I got it done. Is this what you think you said? So I check.
.. Bethany McLean: In my experience there’s not a lot of use in pestering people who don’t get back to you unless you have something new to add. So if somebody doesn’t return a call or doesn’t return an email, I’m probably not going to try again unless I have some new fact. And generally I’d say it took two or three conversations when they did speak, maybe.
.. My first book, I worked with a guy name Peter Elkind, who I think is the best investigative journalist I know. Peter would literally call people 20 times until they call back and that worked, actually. I think you have to be true to yourself when you’re a reporter, as well as true to the story. I just can’t hound people unless I have something new to ask.
You have to play to your strengths and I think my strengths are that actually I’m genuine. But I can’t call 20 times, I just can’t do that. I grew up in the Midwest.
.. Bethany McLean: I don’t think that I have the typical DNA of an investigative journalist. But I often think two things shape my view of the world. I was a math major. I have this analytical backbone where if things don’t make sense to me, I will keep going until I figure out why it doesn’t make sense, what the missing dot is. I can’t stand things that aren’t logical. I don’t think I’d be aggressive enough to keep calling somebody over say, hearing that they had an affair. But if there’s a missing dot in A to C, I’ve got to find B. I just can’t stand it otherwise.
Burt Helm: What were the missing dots in this story that got you going?
Bethany McLean: Figuring out what Gates’s influence on the company was even after he left was this whole missing piece. Once you realize the guy was there until 2008, you’re like, wait, Ballmer’s tenure is a little more complicated, isn’t it?
.. The other thing that shapes my view is that I got burned earlier in my career at Fortune by just writing the stories that people brought to me. I did a column called Companies to Watch, where I was supposed to pick three stocks every two weeks. The idea was to find stocks that were going to double or triple or quadruple in value in the next six months. There was no shortage of people who would come by Fortune and pitch these stories, and I would write them up only to watch as the stocks usually went in exactly the opposite direction.
I got tired of feeling suckered. I got tired of feeling like I was putting things out there that weren’t true. So I think I became a lot more skeptical. I realized I had to ask questions and dig a little more to figure out the story, because what you’re handed on a silver platter is rarely true.
.. Bethany McLean: Completely. A great source of mine had a great line about the financial crisis. He said it’s a mixture of self-delusion, venality, and a little bit of outright corruption. It basically applies to almost any story of business gone wrong. People believe their own bullshit. They really do. They’re not trying to lie; this is the world as they see it. That mixture is to me what makes this stuff so interesting.
.. I always feel like structure is the hardest part of a story. Once you find the right structure, the writing tends to flow. When you’re in the wrong structure, you can’t make the writing work. The only way I know it’s wrong is that I can’t write and it feels trapped somehow.
.. My editor, Doug Stumpf, said, “You don’t understand who Nadella is and why he matters unless you’ve read the Ballmer stuff first.” So Doug actually switched it. You don’t care about Satya Nadella and why he was a different CEO unless you saw how hardcore and tough and perhaps destructive the Microsoft culture had been beforehand.
.. Do you outline or do you just start writing?
.. Bethany McLean: What do you think, given that I told you I was a math major? I outline. I always view writing as sort of sculpture—that I’m carving something out of a lump of clay. For me to start writing, I have to have that lump of clay. The lump of clay is an outline with every conceivable thing I might want to include in every section.
.. Max Chafkin: Like quotes?
Bethany McLean: Like quotes. Sometimes it will be paragraphs of an interview with somebody. It might be like a 30,000 word giant lump that is not English. It’s just fragments of ideas here and there, and then I slowly sort of start figuring out what I think. I sort of whittle away basically.
.. I also think I don’t think in details, I think in chunks. So for me to get the flow of a story I have to think in terms of big picture ideas to find the flow of the story, I can’t think from sentence to sentence. And then to manage the anxiety about losing something or not remembering something, I have to fill in the chunks with every single bit of detail I might possibly want to include. Then I figure out over time—well, what’s the best detail? What really makes this point? Sometimes I end up feeling like the chunk doesn’t go here or the chunk actually doesn’t belong in the story at all, but I have to start there. I’m not sure it’s very efficient.
.. Bethany McLean: The way we all think is really, really weird. Part of being a writer, I think, is letting go of your inner fact-checker and finding the flow of the narrative.
.. Max Chafkin: Your “inner fact-checker” meaning, what?
Bethany McLean: I mean not being so beholden to the facts that you’re afraid to find a narrative. Writing is about two things, finding the structure, and finding the words. I feel like people get in their own way. But you may need to let go a little to find the narrative. I can’t both be worried about the words and the narrative at once.
.. Bethany McLean: When Bryan Burrough and I worked together on the story on SAC Capital. I sent Doug, my editor, my note file for a section instead of the final draft.
.. Bethany McLean: I was like seriously, you guys, you didn’t even think that that she might have sent the wrong file?
.. Bethany McLean: I think the two most normalizing experiences for me were watching other writers who I thought were better writers — and who I still think are better writers than I could ever be — turning things in that don’t work. Some stories are really hard and it’s an art, not a science. Even the people who have been doing this for decades can’t make it work sometimes and get it wrong.
.. Bethany McLean: No, but the Microsoft story almost did me in.
Burt Helm: Really?
Bethany McLean: Yeah. It was really stressful, because there were periods of time where I thought, “I’m not getting anywhere. No one is calling me back. I’m not going to be able to pull this together.” There are a couple of paragraphs in the story about the state of Microsoft’s business. It took me a month of reporting to be able to write those paragraphs about the cloud and how disruptive it was to Microsoft’s business, because I was starting from square one. I didn’t understand.
.. when I write about finance I generally feel like I’m two steps ahead of whomever I’m talking to. I know exactly how to take apart what they’re saying and think about what the next question should be. On technology, I felt like I was missing every third word.