#59 Following Intellectual Curiosity with Thomas Tull

May 28, 2019
Overview

Thomas Tull, founder of Tulco and former CEO of Legendary Entertainment, shares lessons on intellectual honesty, learning from mistakes, and applying technology to traditional industries. He also discusses the evolving entertainment landscape, professional football, and personal habits for well-being.

At a Glance
44 Insights
1h 12m Duration
13 Topics
6 Concepts

Deep Dive Analysis

Early Life, Economic Challenges, and College Impact

Entrepreneurial Ventures: Laundromats and Business Innovation

Founding Legendary Entertainment and Industry Insights

Evolving Landscape of the Movie and Entertainment Business

Leveraging Data Analytics for Movie Marketing Efficiency

Lessons from Box Office Successes and Failures

The Importance of Company Culture in Business

Ownership in the Pittsburgh Steelers and the Human Element

Impact of Data Analytics in Professional Football

Strategies for Sustained Success in the NFL

Transition to Tulco: Applying Technology to Sleepy Industries

Tulco's Investment Philosophy and Acquisition Criteria

Personal Reflections on Time, Health, and Intellectual Curiosity

Intellectual Honesty

Being brutally honest about one's own skill sets, enjoyments, motivations, and wiring, rather than conforming to an ideal projected self. This self-awareness helps in positioning oneself for success and avoiding frustration by aligning actions with true capabilities and desires.

Postmortems for Mistakes

A process of truly unpacking what happened after a mistake, identifying common threads in recurring failures, and distinguishing between bad decisions and external circumstances. This practice aids in pattern recognition and developing sound judgment for future actions, preventing repeated errors.

Momentum in Decision-Making

The tendency to let inertia carry decisions forward, even when the underlying conditions or direction are no longer optimal. It's crucial to recognize points where one could 'jump off' or 'stop the train' instead of being swept along by existing momentum, especially in complex projects like movie production.

Dynamic Pricing (Laundromats)

An innovative business model where the price of services, such as washing and drying, is adjusted based on demand. By offering lower prices during off-peak hours (weekdays) and higher prices during peak times (weekends), this strategy helps to even out business flow and maximize revenue.

Addressable Waking Hours for Media

A metric used to understand how individuals make choices about their entertainment consumption across various platforms (movies, TV, gaming, etc.) within their limited daily waking hours. This concept highlights the intense competition for audience attention in the modern entertainment landscape, where time and attention are finite resources.

Causing Outcome (Business Strategy)

A deliberate approach in business where the goal is not just to make choices and hope for success, but to have a clear, actionable path to actively influence and achieve the desired results. This involves focusing on areas where one can directly contribute to the outcome, rather than passively waiting for things to unfold.

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How does one become intellectually honest about their own makeup?

One becomes intellectually honest by conducting true postmortems on mistakes, identifying common threads in recurring failures, and distinguishing between bad decisions and external circumstances, rather than constantly giving oneself an out.

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What was the innovative approach used in Thomas Tull's laundromat business?

The laundromat business used dynamic pricing, enabled by washers and dryers with built-in computers, to offer lower prices during off-peak hours and higher prices during weekends, thereby evening out business flow and improving efficiency.

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What were the key trends that concerned Thomas Tull in the movie business?

Concerns included good movies no longer guaranteeing success, massive competition from other entertainment forms (streaming, gaming), decreasing attention spans, and the shift from movies being an 'appointment business' to an on-demand entertainment culture.

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How did Legendary Entertainment use analytics to improve movie marketing?

Legendary Analytics aimed to deliver customized marketing messages to specific audiences, inserting themselves into electronic decision points (mobile and online) to target persuadable individuals and avoid bothering those not interested, leading to more efficient advertising spending.

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What makes the difference between talented NFL players who succeed and those who don't?

Success in the NFL, beyond raw talent, often comes down to 'grittiness,' the ability to overcome adversity, comfort with being uncomfortable, professionalism, and a commitment to continuous improvement through hard work, nutrition, sleep hygiene, and training.

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How do successful NFL teams maintain perennial success in a salary cap era?

Perennial success is attributed to a strong organizational culture that attracts and retains athletes, effective salary cap management, and maintaining continuity in coaching staff and assistants over extended periods.

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What is the core idea behind Thomas Tull's current company, Tulco?

Tulco is a holding company that acquires businesses in large, often 'sleepy' industries and reinvents their operations by applying advanced technology like machine learning, AI, and data science to achieve significant, non-linear improvements and results.

1. Be Intellectually Honest

Be brutally intellectually honest about your own skill sets, what you genuinely enjoy, and what truly motivates you to avoid frustration and maximize productivity.

2. Practice Brutal Introspection

Engage in deep and brutally honest introspection about your personal makeup, including strengths, weaknesses, and preferences, as this self-awareness is very helpful for success.

3. Conduct True Postmortems

Always perform true postmortems on your mistakes, avoiding the temptation to give yourself an ‘out’ by blaming external circumstances, to learn effectively.

4. Identify Recurring Mistake Patterns

Look for common threads in your mistakes to identify recurring patterns, then question if you are philosophically wrong, not taking in the right information, being emotional, or surrounded by the wrong people.

5. Halt Negative Momentum

Be vigilant about the momentum of projects or decisions; if the ’train is moving’ in a direction you don’t want, be prepared to ‘stop it’ rather than letting inertia dictate the outcome.

6. Prioritize Great Culture

Invest significant time in building a great company culture, as it will trump a great business plan by fostering excitement and the right mindset, making necessary changes and the journey much easier.

7. Foster Passion & Transparency

Cultivate a passionate, inclusive, and transparent company culture by clearly communicating the top strategic focuses and what the organization is trying to build to all employees.

8. Empower Talented Individuals

Understand when to be hands-off and ‘stay out,’ allowing truly amazing and talented people to do their job effectively without unnecessary interference.

9. Understand Human Motivations

When working with incredibly talented and well-compensated people from diverse backgrounds, recognize that you are in the ‘human being business’ and must understand their varied motivations.

10. Optimize Environment for Success

Ensure you provide an atmosphere where individuals have all the tools and comfort at their disposal, checking every box to enable them to be successful and perform at their best.

11. Develop Grittiness & Comfort

Cultivate grittiness, which is the ability to overcome challenges and be comfortable being uncomfortable, as this is a key differentiator for success.

12. Maximize Potential Through Discipline

To maximize your potential, become disciplined about what you put into your body, train harder than others, and never take a rep off, treating every practice rep like a game rep.

13. Prioritize Sleep, Nutrition, Training

Be a huge believer in and prioritize sleep hygiene, proper nutrition, and consistent training, as these are fundamental elements for maximizing your talent.

14. Evolve Beyond Past Success

Understand that ‘what got you here may not be enough,’ meaning past methods or levels of effort that led to success may not be sufficient for continued achievement.

15. Be Thoughtful About Time

Recognize that time is a finite resource that cannot be replenished, and therefore be as thoughtful and intentional as possible about how you spend it.

16. Integrate Health & Relationships

Integrate workouts, sleep hygiene, and nutrition into your daily lifestyle rather than using them as reactive fixes, and prioritize spending quality time with your family and friends.

17. Express Appreciation to Others

Take the time to express to important people in your life, whether family, friends, or mentors, how much they mean to you and how important they are.

18. Live Your True Beliefs

At the end of each day, reflect on whether you did your best and if you are actively living and applying the things you truly believe in, not just those you outwardly profess.

19. Prioritize Reading

Emphasize and prioritize reading as a crucial activity, as it has a significant positive impact on personal development and learning.

20. Foster Intellectual Curiosity

Encourage children to be intellectually curious, to wonder how things work, to ask questions, and to read, as these habits are foundational for learning.

21. Build Character Through Habits

Emphasize the importance of character and the daily habits that build it, understanding that the ’little things each day’ cumulatively add up to define who you are.

22. Practice Stoicism & Reason

Read stoicism because its principles of reason and focus on personal choices can resonate, and strive to remove as much emotion as possible from your decision-making process.

23. Discern Fads from Proven Methods

Actively seek to differentiate between easy fad solutions and tried-and-true methods, especially in high-stakes areas where results have been consistently demonstrated.

24. Inform Decisions with Analytics

Use data and analytics to self-scout your own tendencies and find small ways to improve your chances, but integrate this information to inform decisions rather than making them solely by algorithms.

25. Interpret & Apply Data

The highest and best outcomes are achieved when you use information and technology, but are also able to interpret and apply it to inform your decisions, rather than just blindly following it.

26. Leverage Available Data

Ensure you are prepared to take full advantage of massive pools of available data, as failing to do so will put you at a disadvantage.

27. Emulate Winning Strategies

Pay close attention to successful strategies, particularly those that lead to major victories, as these will likely be emulated by others.

28. Sustain Success with Culture

For perennial success, cultivate a strong culture that attracts and retains talent, manage finances effectively, and prioritize continuity in coaching staff and assistants.

29. Innovate Existing Models

Instead of inventing entirely new things, look at existing industries or business models to identify specific points where you can improve efficiency or approach them from a different angle.

30. Optimize Traditional Businesses

Enhance traditional businesses by ensuring a clean and safe environment, implementing dynamic pricing to balance demand, and using technology to track finances precisely.

31. Stand Near Absolute Talent

Position yourself as close as possible to individuals with absolute talent, distinguishing them from those who were merely in the right place at the right time.

32. Allocate Appropriate Resources

Ensure you spend an appropriate amount of money for the project’s scope; don’t underfund ambitious global projects, nor overspend on more contained ones.

33. Strategize Attention & Marketing

Always consider how you will effectively capture people’s attention and market your product or service, as this is crucial for its success.

34. Customize Marketing Messages

Leverage technology to deliver customized messages, inserting yourself into electronic decision points to target persuadable individuals and avoid bothering those clearly uninterested, leading to more efficient marketing.

35. Innovate Sleepy Industries

Seek out industries or business models that have seen little innovation and apply new technology and techniques to them to achieve nonlinear and significant results.

36. Enter Emerging Markets Early

Identify and enter emerging markets early, establishing a strong brand presence before they become widely fashionable, to gain a significant advantage.

37. Learn & Localize in Markets

When expanding into new markets, invest significant time in learning about the local environment and prioritize hiring a local team to ensure effective integration and understanding.

38. Diagnose Core Concept Rejection

When a project fails, analyze whether the core concept itself was fundamentally rejected by the audience, as this indicates a deeper issue than execution.

39. Stare at Facts

When evaluating situations, focus on the objective facts as they are to identify areas for improvement.

40. Focus on the Task

Recognize that sometimes you must complete tasks you don’t enjoy, understanding that the ’task at hand is the task at hand’ to achieve broader objectives.

41. Seek Efficacious Education

Prioritize education that teaches you how to think and communicate effectively, instilling a belief in your ability to have a meaningful impact on the world.

A law degree or background provides a great set of skills for thought processes and how to process information, which can be beneficial in various fields.

43. Measure Waking Hours Attention

Beyond traditional metrics, develop a measurement to understand how people allocate their ‘addressable waking hours’ for media consumption, to better grasp their choices.

44. Read “Why We Sleep”

Read Matthew Walker’s book ‘Why We Sleep’ to gain profound insights into the importance and mechanisms of sleep.

If you're constantly saying like, okay, this is the ideal profile of myself or my projected self, you know, versus, no, this is actually the way I'm wired. This is what I enjoy. This is what's motivates me. Um, this is thing, something that I'm really good at. You have to put yourself in a position to be successful.

Thomas Tull

I always kind of felt like great culture will trump a great business plan every day of the week because you can have an amazing business plan and I guarantee that it'll morph and change.

Thomas Tull

I'm not good at coming up with a new thing... What I've done okay at is looking at an industry or a business model and saying, okay, where are the points that you could either improve this or make it more efficient or come at it from a different angle?

Thomas Tull

You just make sure you get their catering right.

Thomas Tull

Unless somebody has invented something I'm not aware of, the one thing that we can't make any more of is time.

Thomas Tull

I always believe in the future. I do think we've come through and are in the middle right now of a time that seems like there's a lot of chaos and uncertainty.

Thomas Tull

Process for Evaluating Potential Acquisitions (Tulco)

Thomas Tull
  1. Assess if there is enough scale and size in the business to justify a concentrated investment, as Tulco is an operating company, not a venture fund.
  2. Identify management teams that are experts in their specific industry but are also open to and embrace change and new technologies.
  3. Determine if the target market category is large enough and if successful execution would lead to a significant impact and substantial upside.
  4. Ensure there is a clear, actionable path for Tulco to actively 'cause the outcome' and provide value beyond just capital, rather than just hoping for success.
More than 30
Number of films produced by Legendary Entertainment These films collectively grossed over $13 billion worldwide.
$13 billion
Worldwide box office gross for Legendary Entertainment films Achieved across more than 30 films.
2008
Year Thomas Tull joined Pittsburgh Steelers ownership group The Steelers won the Super Bowl that year.
3
Number of coaches for Pittsburgh Steelers during Thomas Tull's lifetime Highlighting the organization's continuity in coaching.
4
Number of laundromats owned by Thomas Tull Part of his early entrepreneurial ventures.