Digital Leadership: What we can learn from Steve Wynn!

In my previous articles, I have often written about the fact that the leadership qualities that are in demand today are largely similar to those exhibited by traditional entrepreneurs during industrialization. Even today, there are still entrepreneurs who have already left their careers behind them, but from whom we can learn a great deal in terms of agile entrepreneurship and dealing with employees. Steve Wynn, 73, casino magnate and leading entrepreneur from Las Vegas, is one such representative. His keynote speech at the Global Gaming Expo 2014 is peppered with remarkable statements. Statements that we would actually expect more from young entrepreneurs. I have picked out a few.

(Reading time: 4 minutes / Talk 40 minutes)

Willingness to invest and risk

In the talk, Wynn describes in detail and not without joy and pride how he and his team have made gigantic investments over the last 15 years. It is important to note that Wynn, who came from a humble background, made a name for himself between 1980 and 2000 through various clever small investments and deals in Las Vegas. His big coup was the sale of the Mirage Resort(Mirage, Treasure Islands, Bellagio) to MGM. The deal brought Steve Wynn US$ 500 million. At a point, at the age of 58 and financially secure, when most of today’s leaders are thinking about early retirement, Steve Wynn really started to get going and invest: 2.7 billion in the Wynn Hotel in Las Vegas (2005), 0.8 billion in the Wynn Macau (China, 2006), 2.3 billion in the Encore Las Vegas (2008), 2.5 billion in the Wynn Palace (China, 2012) and 1.6 billion in the Wynn Everett Casino (2014). Of course, it is easy for Wynn with its track record to find capital. But every single investment could have gone wrong and meant the end of his group of companies. His investments and entrepreneurial activities were associated with enormous risks. And all this in a period of time that, especially after 911 and in the middle of the real estate/financial crisis, was, according to the traditional view, a very bad moment. Wynn simply carried on and, unlike the other casino operators, did not make any mass redundancies during this period.

 

Wynn on change

The only thing that is for sure is change and you got to use your brain to figure out what is really happening. If you do that, you are probably save.

I think that is something like the quintessence of entrepreneurial action.

Wynn on experience

Experience matters, knowing how to do things matters. Understanding the relationships, the parts to the whole and how important those parts are, and how they have to be satisfied, is the principle job of the Boss man. I call it the Dada gene. You don’t get befuddled, you have the kind of relationship and respect for you colleagues that allow you to deal with change as professionals are trained and prepared to do it. The tougher the time the more exiting the job. Cause, up or down, all of us who are in this business are being paid to deal with change….. nothing stays still for five seconds.

 

Wynn on employee motivation

It’s tough out there right? Everybody wants the best your people. I know the feeling, you want to keep them, that’s the only chance you have. What keeps them? Money? Sort of…. Once people feel like they are being paid well, it’s something else: Is the job satisfying. The most powerful thing in human nature is self-esteem. If you can figure out a way, in any business, to equate experience at that job with an enhanced self-esteem, no one will ever leave. That’s the biggest deal.

 

Wynn on agile companies

The question is how do you equate an experience on the job with enhanced self-esteem. Because if you can, it will be repeated endlessly. You will have an agile, warm and happy workforce that deal with change in a positive way. Two organizations: Memo comes down, we are not going to do it the way we did yesterday anymore. We are going to do it THIS way. Organization with poor leadership, here is what happens: On the line employees; damn it, every week it’s something new, can they ever make up their mind, what are they going to do with it, it’s this way this week and that way next week, what the hell will it be next week? Same memo comes down to a well led organization and people are looking at it saying “Hmm we are doing thing differently, we are getting smarter, we are more sophisticated. Glass half empty, glass half full – it’s all about leadership.

 

Wynn on digitalization

I come from a company that is digitally insensitive I am afraid, because we came to the conclusion over the years, that it isn’t really about the equipment, the stuff, even the iPhone 6. Because we believe where I come from, only people can make people happy. And we are very dedicated to this principle.

In the talk and on various other occasions, Wynn makes fun of digitalization and consultants in particular. When asked why he does not want to invest in internet gaming, which is not yet legal anyway, he replies that he does not see a business case. However, his companies are very much at the forefront of the digital sector.

 

You can watch the whole video here: