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3 ways to measure your adaptability -- and how to improve it | Natalie Fratto

Updated on July 12
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Key Smash Notes In This Episode

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Some venture capitalists base their decision off of the person’s previous background. Others choose to assess a founder’s emotional quotient.

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As an investor, Natalie Fratto has to determine which founder would be the best to invest in. She looks for signs of one specific trait: adaptability. To her, it’s important to see how people react during the frequent times of inevitability change.

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Our adaptability quotient is something that can be tested and improved. Fratto states how important AQ is for all of us because the world is also speeding up, which forces our brains to react.

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It’s a safe testing ground for adaptability. Rather than testing how you retain information, you are tested on how you manipulate manipulation in order to achieve a certain goal.

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Natalie Fratto states how we collectively overvalue exploitation. She gives the example of Blockbuster, of how the CEO filed for bankruptcy due to focusing on exploitation and not adaptability.

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Fratto frames it as a state of constant seeking. We should not fall too in love with our wins, but continue to seek out what might kill us next.

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Here are three tricks to try, when evaluating startup founders. First, ask them "what if" questions. Then test whether they can unlearn information. Finally, look for people who prioritize exploration over exploitation.

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We are entering the kind of future where IQ and EQ matter way less than how fast we are able to adapt.

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