Transcripts For KQED Charlie Rose 20140716

And really the best way to check both of those boxes are a continuation of the diplomacy, but the challenge here is not finding an agreement between iranian president Hassan Rouhani or barack obama or u. S. Secretary of state and john kerry and Iranian Foreign minister, the real challenge here is finding a document in which both the u. S. Congress and the Iranian Revolutionary guards can agree upon, a document in which both israeli prime minister, netanyahu and iranian Supreme Leader can agree upon it, and i think that is the real challenges is finding a vin diagram in which iranian ideology, american domestic politics and Israeli National security all intersect. Rose we conclude this evening with a look at Silicon Valley through the eyes of reid hoffman, one of the foremost figure there is and the founder of linkedin. If you want to have an adaptive company and actually, in fact, you know, still be in existence 20 years, 50 years, 100 years from now, that is going to require you readapting yourself and you can only do that with entrepreneurial talent, it doesnt mean entrepreneurs, necessarily but people who are themselves adaptive so how do you identify those people and recruit them and how do you manage them and deploy them . Rose iran negotiations and ill son valley activities when we continue. Funding for charlie rose is provided by the theres a saying around here you stand behind what you say. Around here, we dont make excuses, we make commitments. And when you cant live up to them, you own up and make it right. Some people think the kind of accountability that thrives on so many streets in this country has gone missing in the places where its needed most. But i know youll still find it, when you know where to look. Captioning sponsored by Rose Communications from our studios in new york city, this is charlie rose. Negotiations in vienna about Irans Nuclear program. The deadline is sunday, july 20th, a temporary agreement does allow for an extension of up to six months. Iranian foreign minister spoke earlier today about three days of meetings between the parties he said there had been enough progress to justify an extension, secretary of state john kerry also spoke earlier today. I am returning to washington today to consult with president. And with leaders in congress over the coming days about the prospects for a comprehensive agreement as well as a path forward if we do not achieve one by the 20th of july. Including the question of whether or not more time is warranted, based on the progress we have made and how things are going. As i have said, and i repeat, there has been tangible progress on key issues. And we have extensive conversations in which we moved on certain things. However, there are also very real gaps on other key issues. And what we are trying to do is find a way for iran to have an exclusively Peaceful Nuclear program while giving the world all the assurances required to know that iran is not seeking a Nuclear Weapon. I want to underscore, these goals are not incompatible. In fact, they are realistic. But we have not yet found the right combination or arrived at the workable formula. There are more issues to work through and more provisions to nail down. To ensure that irans program will always remain exclusively peaceful. So we are going to continue to work. And we are going to continue to work with the belief that there is a way forward. But and this is a critical point. While there is a path forward, iran needs to choose to take it, and our goal now is to determine the precise contours of that path, and i believe we can. Rose joining me now from washington, karim sadjadpour, current associate of the senior carnegie endowment. And ray takeyh, senior fellow at the council on foreign relations. Let me begin with you, ray, what happened over there . We have a proposal announced by the foreign minister of iran, we have the secretary of states response to it. What is exactly the progress and what is exactly the stumbling point . Sure. I think if you look at what the foreign minister has suggested, the iranian negotiating team essentially wants to keep the Enrichment Program intact at its current level and thats totally unacceptable to the United States and its partners. However there has been some progress made seemingly on the issue of enrichment facility iranians are apparently willing to transform that into a Research Reactor and of course the iraq heavy water facility which is supposed to be modified to produce less plutonium and therefore make it more proliferation resistant. I think the critical issue of this agreement is the existing scope of iranian Enrichment Program and it is duration of the final agreement, any agreement as negotiated between and the iran will have a sunset clause. Iran wants to limit the clause while the International Community seems to resist on 20 years, those are fairly substantial gaps. Karim . I think what ray said is absolutely right, charlie. I am looking at it from the per perspective of the United States i would say barack obama has two major priorities in the iran policy. He wants to veteran, avert an iranian bomb and bombing iran and really the best way to check both of those boxes is a continuation of diplomacy, but the challenge here is not finding an agreement between iranian president Hassan Rouhani and barack obama or u. S. Secretary of state john kerry and Iranian Foreign minister sheriff, the real problem is finding a document in both the u. S. Congress and the Iran Revolutionary guard can agree upon, a document that both israeli brian minister Benjamin Netanyahu and iranian Supreme Leader can agree upon it. And i think that is the real challenge is finding a ven diagram in which iranian ideology, american domestic politics and Israeli National security all intersect. It is not simply that if you could find an agreement in which the United States, whether it is the president would be assured that they had signed an agreement that would limit their capacity to break out, and if, in fact, the extreme leader would sign on to that that you have a deal, isnt it that simple or as you suggested, you know, other people have to do and be involved in what is acceptable to them before they will sign off . Well, as ray said, charlie there is a major gap still in the numbers. Iran doesnt really want to drive the car in reverse. It wants to maintain what it has and in seven to ten years it should have an industrial, industrial size, industrial scale Nuclear Program, and the United States wants iran to significantly curtail what it has now. And it is a decade from now, perhaps iran will be granted what it has essentially right now so i think there are some huge gaps that remain, but when you contemplate the alternative to diplomacy, which is a return to the status quo, antipotential escalation sanctions on our end iran moving forward in its Nuclear Program and a disastrous war, potentially disastrous warm which president. There is. What part of the negotiations we havent spoken about is a stepbystep in terms of the proposal by foreign minister sharif is a stepbystep reduction in the sanctions . Will the americans stand for any reduction in the sanctions in terms of the significant way until they have more give on the part of the iranians . Ray . I think existing proposal that the foreign minister sharif has on the table is unacceptable to the United States congress and unacceptable to the president obama legislation. If you look at the legislation that has passed and mandated sanctions are related to that legislation there has to be a significant dismantling of the Iranian Nuclear facility. And not just expanding in five years. At this point the iranian proposal is unacceptable to the americans and legislative and executive branch. What do you make of the fact that the extreme leader said that iran will insist on having 190,000 centrifuges which is way above americans will accept . Actually he was reflecting the iranian position, namely, his position is not that different from his negotiators, what he will u suggest is questn will accept restrictions for a number of years, and upon the expiration of that sunset clause we will expand the program to meet our Domestic Energy needs. And he identified those Domestic Energy needs as requiring 190,000 centrifuges so in that particular sense he is not out of step with his negotiators, they all agree after expiration of the sunset clause they have a right to be treated as any other member of the mpg, for instance japan and have a right to have a Nuclear Industrial type capacity of france or germany who use Nuclear Energy for domestic purposes. Would both of you look at this proposal by the foreign minister and say these are reasonable proposals . I think the foreign minister proposal is certainly not sufficient to reach a deal, but it is sufficient enough to see a continuation of the negotiations. And, you know, back to the extreme leader, i think his recent advocacy of 190,000, depending on what type of centrifuges youre a looking at, is or 190,000 centrifuges or 100,000 centrifuges, you know that was kind of a classic harmony position in that he simultaneously advocated, he supports, supported the diplomatic negotiations but he set the bar so high he undermined his own negotiating team and this raises the question of whether the hardliners in iran really want to see a nuclear deal. Because dating back to the 1979 seizure of the u. S. Embassy in iran, the hostage crisis, these hardline in other words tehran have really manufactured and prolonged external crises for internal legitimacy, so this is also the big challenge of reaching a deal with these forces in iran which may seem, see it inimical to their interest of reaching a nuclear deal. I think karim put his hand exactly on the issue. He wont own a nuclear agreement. Thats a signal he has made to his president and foreign minister, that he will not take ownership of an agreement that drastically reduces Irans Nuclear capability. Going forward that is the huge problem in terms of the negotiations. Unless he changes his mind and thus far actually he hasnt. He establishes real lines in his speech in september when he said no Nuclear Facility will be shuttered and you will, no Nuclear Resources will be shipped out of the country for reprocessing and so forth. He has maintained those broad lines and imposed those on his negotiators, if he continues to do so, these borne educations are going to prolong for reasons that kerry suggested, but in terms of their actually can getting to a final settlement sat i are to all the parties, that might be a little difficult. Is it just simple and provable that because these negotiations have been taking tg place and because they have certain restrictions built in them that iran is not at a place it might have been if there were no negotiations . Albeit the go ahead. I think that is probably right. And in th the absence of negotiations iran probably has expanded its capacity much more and have installed more centrifuges, it would have developed Second Generation centrifuges with greater speed. However, that path would also be complicated by the fact that irans economy would be in much more of a difficult shape so there has always been a tradeoff. Nuclear expansion has come at the price of economic contract shun and the in the past six months both parties have taken a breather, so you are right. Irans economy would be much worse by this Nuclear Capabilities would be much more dangerous in absence of a joint plan of action. How close is iran today. We always ask that. I suspect it is the same place it was six months ago, because of the freeze that, and the cams imposed on this capacity to manufacture a bomb, so based upon who you asked, the estimates are still within six months or a year that if it wants to, it can move to a Nuclear Weapon capacity with that level of speed, but, again, there is sufficient time at this point for iran to be detected and that is the essence, the essential deterrence against that move. Camera karim . I would add, charlie when you talk to members of congress about iran what really animates them is actually less Irans Nuclear ambitions and more its position in the middle east, its rejection of israels existence, its holocaust denial, support for groups of hamas, Islamic Jihad so in many way u. S. Policy in iran is domestic policy as a Foreign Policy and i think herein lies the channel, you know, the Obama Administration is trying to do is to reach a technical resolution of what is essentially a political conflict. The iranian Supreme Leader made clear these negotiations are not about improving the u. S. Iran relationship. This is not about detente this is just an arms control deal and at its a heart the u. S. Iran conflict is about mistrust, mutual mistrust and what ray is talking about is right, i think it is very difficult to bridge this mistrust gap, only on the nuclear file while maintaining it politically. Rose are the end of negotiations, any kind of conversation going on in iraq because of the threat of isis there that might, you know, mean a level of conversation about things beyond nuclear . I suspect john kerry and sharif have had side conversations about iran and i think iraq really amplifies this major incon griewns between irans revolutionary ideology and National Interests according to irans revolutionary ideology, the major enemies are america and israel. But when you look at it in terms of irans National Interests you could argue that america, that israel is actually a potential ally to iran in fighting these radical sunni jihadists, they are both concerned about and i think this is over the last month or so was another opportunity for the extreme leader to put National Interests ahead of ideological interests, but whenever he has had that opportunity, he always put ideological interests before National Interests and thats why i am not optimistic that we are on the verge of a potential major diplomatic breakthrough but i think best Case Scenario we can reduce the tension on the nuclear file. I will side. I think the tragedy of this that has become the tragedy of his country he has suborned the National Interests to his ideological compulsions thats why many areas of potential cooperation in iran have gone and gone because of the animus he feels towards the United States. Rose thank you with that very much, pleasure to have both of you here. Thank you charlie. We will be right back. Stay with us. Reid hoffman is here, and partner of the Venture Capital firm, greylock, where he focuses on a range of tech investments, including the consumer internet, social gaming and payment. And silicon centrally he is the one many call when they are looking for tech advice. His new book is called the alliance managing talent in the network age. It is cowritten with entrepreneurs ben i am pleased to have reid hoffman back at the table. Welcome. Great to be here. I mean did i give justice to your coauthors there . Yes, they are both serial entrepreneurs and also authors in their own right. Ben written his own book and chris has written a very expensive blog. Ben, ben and i, our first collaboration, our first tour of duty as it were. What did you set out to be, you in your life . Computer scientist . There is a version which i was aspiring to be you. Rose oh, really . Yes. When i was at stanford. Rose i would rather be you. The publican intellectual who talks about who we are in society and who we should be. Rose thats exactly what we do here. Exactly. And help us down that path. And originally i was thinking i was going to be an academic and publican intellectual and in both that doesnt resonate with public yes intellectual stuff bi became a creator of software. Rose and the rest. Yes. And has does the packet you have been so good at this given you an opportunity also to be have a voice in the marble conversation . I hope so, and maybe more overtime, i mean, part of the well, anything from writing books to, you know, for example, helping todd park figure out things with healthcare. Gov and how do you integrate tech following into the government, you know, how do you think about, like, for example, in order to fund the kinds of society we want to live in, whether it is education, healthcare, et cetera, you have to have an effective economy, how does entrepreneurship play into that, how do you create new jobs in doing that and these are all ways that i connect with the Public Discourse in ways that i never would have imagined when i was a student. I dont know whether it is because of linked in or whatever it is but you seem to uniquely among the people i know Silicon Valley have an interest in the sort of Work Environment and the work relationship, those kind of things. Yes. And maybe it is because of linkedin and you are about connections and understanding what people do, but am i well, i think so. For me i think in terms of a little bit of public intellectual who are the individuals and how do we connect with other people. Thats why i in the social networking space or web 20. But on one side it is work, so how do we work together, how work patterns, how, it is deeply connected to linked inand think how it is we form tribe with each other, like for example part of the reason i participate in the Public Discourse is, you know, how are we a society together . You know, how do we encounter things . And how do we make ourselves better by doing that . And s so a part of the reason i think about the work stwriermt is i am thinking about everything from, for example, when i came back from oxford, when i was a student one of the things i thought about doing before i got the job at apple i thought about writing a book about how to college, like how do do College Better because i was thinking all the students understood how to do College Better it would be better for them and better for everybody else as they came out so those type of patterns are the things that attract me so when i think about work and i think about how we work and i think about how we work as individuals, how we invest in ourselves, how we lead more successful careers, like the first book, the start of a view, was very much based off of, you know, how do i make my life better . Rose re. I think about that every day. Yes. Rose i do, because of how you use your time, all over this sort of extraordinary opportunities just to learn, all extraordinary opportunities, in and a sense to have such a satisfying experience. Yes. Rose that are out there, i mean whether it is travel, whether it is into some sense of the variety of cultures that exist on the planet, all of that. And now, all the devices that we have that give us access to a world that we can imagine. Yes. All of that makes life so much more fundamentally potentially expansive. Yes. Well like a little nuance in the invasion of iraq was happening was happening and we could see blog posts from the people on the ground that live there. Think about the connected nature of rehumanizing the world through that. It was extremely important. Rose that is exactly the opposite of the demonizing part of seeing it through a pilots eye. Yes. The whole idea thatable the drones and the rest of it. I mean, you know, they showed on television recently, the israeli pilots, they look down and they were making some decisions, we cant go, that is too many children, the possibilities and all of that kind of thing but that brings it to the Deval Patrick tenant and managing back,. In silicon centrally the work is different. Yes. So one of the things, what i dime realize when i was talking to people about how we manage at linkedin, how to use linked inwhen using it as a company, how do you employ the idea of the book came out why do you want to be employing people who are the entrepreneurs of their own life . And the short answer is what makes silicon special is the people and how it organizes people, people think it is technology, but it is actually people. Rose right. Who create things, it is people who adapt. It is people who make things in the world. Rose right. And so it comes down to, well, if you want to have an adaptive company and want to actually, in fact, still be in existence 20 or 50 years, 100 years from now, that is going to require you readapting yourself and you can only do that with entrepreneurial talent, it doesnt mean entrepreneurs, necessarily but people who are themselves adaptive so how do you identify those people . How do you recruit them . How do you manage them . How do you deploy them so we wrote and essay for hbr and says this is great and we like the book actually we think we could write a book on how Silicon Valley does it in a way that is helpful and instructive, because obviously classically, classically silicon centrally everything is good and just copy us. No, no, elements of it, like elements of how you create, how you adapt, and so the key thing was, really, like most people have a square on the face the notion of lifetime employment is gone. Rose right. But that is not the way the world operates anymore. Rose you two do General Motors and work for 40 years. Yes. And you say well, but implicitly underlying the hr programs, underlying the recruiting, underlying their managing is still this presumption of a lifetime employment program. And what that is, it leads to a dishonest conversation because both the employee and the company, the manager know there is some real chance the employee is going to go work somewhere else but if you dont have that conversation yo you are having a live admission and that leads to disrust and thats the thing, lets fix that and have an honest conversation about what it is you might be doing three to five years from now. Rose right. And sure we hope it is at our company, but it may be somewhere else and still we can have an am lines. Rose so you then begin to understand it was almost like a tour of duty. Yes. Rose explain that. We talk a lot about what the right term is, and we ultimately for pros and cons with tour of duty, and the reason is, because so the people who realize lifetime employment was over, went to essentially all free agent nation you have one day contracts, jack welch contract, the problem is that doesnt allow investment in the future, either for the company or for the employee. You need both, you need to have investment, you need to have projects so we said it needs to be, this is what happens in the Silicon Valley a fouryear stock package when you start, it is roughly they count fouryear, you will accomplish something really significant in the company, it will be really beneficial to you and really beneficial to us, so it is like well actually it is this Mission Oriented, realistic time frame project that creates the mutual investment opportunity. So what you would call that, well, lets call it tour of duty. Rose right. Because it is resonant. Now it has some weird, you know, some people find the military connotations pod positive and some meg, we dont really mean anything with the military connotation other than a coherent Mission Oriented project within a reasonable amount of time. So there are three phases right . Three different so. We started the one we wrote the hpr article on the transformational, which is work for, you know, two to five years, it all depends on the i have and the, industry and the job and Everything Else we do something transformational for your career and your work, then we realize as we were wrestling with it there are at least two other types one which is the foundational tour, which i so much like love this company, this company is my mission, maybe it is a one industry town, i will work at this company my entire life, and even if i dont get title increases or a new job i want to be working here. Thats a foundational tour. And one of the things we realized is looking at this is actually most Good Companies that want to be adapted need to have a combination of the transformational and form maicial tours. If 100 percent foundational that is not good because it is not adaptive and transformational is, you dont have enough people to do continuity and rotational is how you scale. Rotational is scaling, you know, ups driver, starbucks, you know, people working at best buy, you know, it is how do i have a large fleet of people that have a job that have a focus, now, there are nuance in the rotational that is probably not worth rehashing the whole book here. Rose exact ily. And so in terms of rotational transformational and foundational tour of duty. Yes. The interesting thing is, i think about the fact that, i happen to know this story because it has been written so many times, how did Mark Zuckerberg pursue Charles Sandburg . That was talent. Yes. He needed someone. Yes. You know, because pace book was coming up. Yes. He may be on the board. I dont know how many boards you are on. I was not on the facebook board but i was an investor. Rose that was good. Yes, a very good investment. Rose exactly. And he spent a lot of his time there, most ceos out there spend a lot of time if there is a very valuable person that you could potentially and that it happens to fill a huge and basic need you have. Yes. Well, one consequence of this shifting and kind of growing world, and steve jobs did this, Mark Zuckerberg does this, jeff beaner does this in a sense you are always recruiting, you are always talking to people and getting some sense of folks and so i believe the way that zuckerberg met cheryl is that he went over to her house an met her and then started talking with her. Rose and but my point is, it was the consumption of his time, i mean, for and for most ceos out there, if you posit you have that it is the human intelligence and the Human Resource that is this critical difference,. And so, therefore, i think you are not being i think it is probably a true hypothesis universally but true in Silicon Valley, if you not spending time recruiting you are not doing your job. But that is why the late steve jobs got in trouble because there were some ideas they were making sure well, that was a different problem, you shouldnt collude. His thing was going and colluding with other organizations that wouldnt leave. Rose the point was not to lose his employees. You dont want to lose your guys so you collude with them. I think you should always be recruiting but in terms of retention a much better way of retention is having a good relationship. Rose if you come to get my peoplely do terrible things to you. Yes. Exactly. Thats not the way to do it. So therefore i mean, everybody agrees that is bad if you an individual but does this put the employee in the drivers seat in Silicon Valley in 2014 . I dont think this changes the balances that already exist, sometimes the company is in the drivers so seat and sometimes the employee is in the drivers seat, what it does is facilitate an honest conversation and that honest conversation is the only way you build trust. So like it is really, it is funny how shocking it is, our head of engineering and operations at linked indoes something that didnt occur to me to do which i have started doing. In the very first interview of an employee, what job they want after linkedin. Rose ah. And i, oh, my god, that is an awesome idea i will do that to too because i care about your career transformation. Rose i will help you get this. This will transform your career and i care about that. Rose know about it and care about it. And of course kevin would be delighted if a person worked the whole time in linkedin, of course but i care about linked in and you it is an alliance. Rose thats the way i feel to. What do you want to do and help you get there but in order to get there, in order to help you get there, you know, what are you going to do help me to where i want to go . Exactly. And that. Rose that is a tradeoff. Thats why we call it an aligns. When you look at sort of the is this taking hold beyond Silicon Valley . Bits and pieces, General Electric has some programs that do this, there is a classic, you know, industry giant. Rose that is the kind of manager that immelt is. Yes. Spectacular managers, ken shnult is doing various things. Among some of the elite management we talk to there are components of the tours of duty, the different projects, there is alumni networks, a whole bunch. While i have you here i want to talk about several things. Whenever i see you, i have this sort of silly little question which, what is is the future and where is it goes and how does it excite you and what is your passion beyond the companies you already created . I think two chan channels to answer that. I continue to be interested in how software defines human net works one of my investments is air b and b how networks are people and always looking for interesting things there one of the companies that i am on the board of know is social networks for k 12 but how do you transform social education, liked linkedin is a platform for life. How can it be for education, high school and earlier, so that is one stack. The other stack is the kind of the new technologies that can also transform our lives, we both saw on bitcoin. Rose right. So i am an investor in zappo,. Rose and you have been a fan of bitcoin, you have been a supporter of bit com, a believer. Das very high beta, beta bet. People talk about bitcoin all the time and dont realize the most interesting question is, is the first or last crypt toe currency if it is the last one, bitcoin is certainly solid and fine with government. The only interesting question is, will there be a new one that is much better . Rose yeah. And that is. Actually you dont know. And the thing is, and there is always a new attention but Network Effects in currencies, the fact bitcoin is going makes it super interesting, internet of things, is another thing. Rose everybody is talkable about that. Yes. Exact displi and acquisition, and making acquisitions in that pursuit. Yes, exactly. Rose explain to people what internet thing is. Oh, so essentially, as you know, think of every it is not even just every electronic object because ultimately chips get smaller and get embedded in things, every object in your house might actually be connected to a cloud of services so the thing that allows for for example a door sensor and a camera, well you can take a picture every time the door opens when you are not home because your phone knows if you home or not so the door opens, who is that . Rose who is opening the door . Or you can say, for example, the smoke system, like all the smoke detectors can be connected in a way that they notify you no matter where you are, if, so even if you not in the house i see smoke in the house or it can also call somebody, it can give a dashboard of what is going on, turn on cameras. Rose right. To see what is going on. All of the stuff. Rose the air conditioning. Yes, right all of this stuff means the same kind of improvement that we have begun seeing in other technology because software and because circuits apply to it are now going to be an interesting patterns in the house. But you are seeing people like google make big act quick sister. With nest. Nest one of the biggest. So you mention the thing to me which i cant quite get my hands around, arms around, which is this sort of the intersection between computation. Yes. And biology. Yes. Explain to me one more time so i can get it. My apologies. Rose no, it is my fault. So is happening is, biology, biological systems, dna, virus, is all code, right . And as you begin to be able to read that code very fast, and you put it in a computational environment. Rose you mean in genetic code . Genetic code, virus code. Right. Kind of responsive to drugs and pharmaceuticals and how those codes get together twoway street, one for example, a friend, a person i told you that is useful to talk to and extend you his contact information. Who saved a childs life because he sequenced the childs gentleman genomes so quickly he he knew there was a remote case virus and just penicillin would save it, the rest of the entire medical missed it, the cdc test missed it because he could do the sequence and code sequence oh that is this virus. Penicillin will kill it and the child is alive. Rose what was the child suffering from . It was. Rose a manifestation of whatever was they were literally dying. And it was a virus that is only in the fresh water in the caribbean, and they tested for mainstream, the major part of that virus but this was a variant, that hadnt been caught on the main test. Rose was this just luck or science. No this is science because what happens is as you begin to get the whole code, you see when you have the whole code you can run like sequence the whole thing and run all kinds of tests on it fast because i can run it on the speed of a computational match. Rose right. And it is both directions, it is bothing reading what is the going on with you and also people are printing proteins. They are printing genetics. Like eventually you will be able to print like not just can i make a heart, i can make a heart for charlie. I can make a heart that charlie, his genetics work just fine with. Rose right. Because i can read it and i can print it. That is sort of thing is the kind of thing that is going to naturally come about. Rose how far off is that . Oh, i would say there are other people more expert but from what i am reading ten or 15 years. Now, is this really the most i mean this has to be part of the most exciting area for people who think deeply about it. You know, because it is the idea of, you know, in a sense what makes you human and all those questions. Yes. Rose come right into that. Yes. Exactly. Rose the capacity to understand and effect that. Yes. Rose right . Yes. And we see, it is like when software begins to touch some industry, some ability to create something, you begin to see a creativity cycle that picks up speed and this thing about like what it is to be human. Rose right. How it is that we live longer, healthier lives, how is it that we actually understand what is going on with us, it is a fundamental area. Rose oh, i mean, it is just it blows your mind, it really does. I mean, i was on a panel and talked about this sort of i mean just understanding, you know, and now being, moving inside the brain too, just being able to understand what is going on, and in terms of being able to see it now, which brings it alive, this socalled aha moment i talk about on the stage. Well one of the things, another one by the way on this is there is a researcher, named ed boynton who is figuring out how to connect circuitry to mice brains so you can essentially be reading what is going on, understanding what . Going on, like the beginning, like the way he introduces himself and people initially laugh and realize he is right, i understand the brain. The science is beginning to be at that point, at that point so it is one of the reasons why it is so critical for all of us to pay more attention to science. Rose and the reason it is going to make you smarter which is well and done, in fact, but it is because it effects so many diseases, think alzheimers, think lou gehrigs. Parkinson. Parkinsons. All of those disease, schizophrenia, depression. Completely possible. All those diseases. And, and, sight. Yes. And hearing all connected to the brain. Yes. Exactly. Rose exciting world we live in. It is awesome. Let me calls of to the businesses you work with. Linkedin what is the progress on linkedin. Well,. People dont know how to make the best use of it. Yes, so i will start with an anecdote, yes, most people, do you understand what it is to live and work in a Network World and sure i have a cellphone, you know, i un, i am in a network. Well, actually a Network World there are millions of people who are searching, right, and what are you doing to be found . Like you have to have a strategy of how am i found . People say well i get overloaded i want new connections well you want newsing natural, not new noise, so filtering between signal and noise but being found is critical like for example what i do as an investor my ling inprimary file is people want to work at linkedin and people who want investment, that is what that profile profile is designed for, because being found i mean that is a b and b investment they came and found me. Rose they knew you would be receptive. Yes. Rose and knew. They knew i would be good investor for them, right, that is the kind of thing that you actually that is true for everyone, not just me, what is your strategy for being found . And thats part of the whole linkedin thing, other people are lets talk about being fold, being found, being found as an investor, being found as what . Being found as someone who has a curiosity about elephants, the stuff we just did . Exactly what is the thing because everyone has access, if i few more people working on this or doing this project, had this intellectual interest, okay, how are the people who have that, how can they find me . And how can i configure the right way so the signal noise, obviously crazy people can find you too and you are not interested in finding them but if you have the right kind of filter which is by the way, like kind of how linkedin is designed well if they referred you by someone you already know and trust that is a really good filter. Rose yes, exactly. Thats the idea of social media anyway in search, isnt it. Make me contactable by referral. Rose right, right. Exactly it is a more proven basis of a fit. Yes. Rose exactly in terms of what you want to buy or go or friendship or Everything Else. Let me say one more ling inthing, most people say i am thinking of an expert and talk to someone who is the person i snow right. And then they call them. Rose right. That person might be useful but, in fact, actually, they may be the ideal person or a much better person two degrees out. How do you discover that person right . Well that is part of the whole idea of linkedin, for example what i tell people well i am not looking for a job, why do i use linkedin is there a problem you are trying to solve, a term that would describe, someone said this is what i am an expert in and have that in the profile profile, search that and see if it is the right person. So the key here it seems to me this is about everything having to do with search, uhhuh, the key is how big is your database. Yes, how many people will list, all of those people who would love to explore what it is like to do something rare and unusual, they lift it before you can find them . Yes. But as Network Effects as it compounds and people get more and more useful, this is also about the power of genome therapy too, isnt it . Yes. Rose more samples we have of people who have had their and the people have big data all the time, i dont like the big datae data term. Rose thats why they talk big data, it provides you more solid information. Okay. So the other thing i want to talk to you is you wrote a book about entrepreneurship. Uhhuh. Rose i dont know if there is anything else to say about it but it is alive and well. Yes. Rose and everybody wants to be one. They read about you or they read about so many other people. So one of the things so i have been thinking about get more and more involved on the civic dedimension, because what happened this natural systems, big companies, governments is they tend to harden the system against challengers, the incumbents tend to make it more difficult for challengers to come the and yet what entrepreneurship is are the people who challenge the system, they are the people who say i have got a new product, a new service, a new idea i have something i want to offer that isnt offer you haved yet already, but that is how we create the future, right . That is how we invent new product and services so part of the thing is, how do we and in the u. S. We are very fortunate in that we are one of the best societies for entrepreneurs, you know, anywhere in the world, but i think we can still do better, and i think it is how the question is how we enable entrepreneurs in our country and other countries i think it is good everywhere in the world to create new jobs and i have have i have, i have, industry, i have been thinking about what are the ways to do that. Where has that thinking led you. Unsurprisingly you to, to you and other folks who know me, a lot of what the magic of Silicon Valley is network, if you have a network you can quickly find other people who go i know an expert in this, i know a customer for this, i know employees, i know financing a company has a set of resources that all need to be there in order to be is. The seed you can assemble that is the strength of the new york net work how can we as a society strengthen the networks in various areas is there something we can do in detroit, something we can do in new orleans, and in order to create a much more Robust Network to enable entrepreneurship in those areas in order to create Economic Prosperity and jobs. This is allied but not that close, but i have got i mean he is tremendously interested in viewing the corporation as this very alive, viable institution, you know, that has real possibilities. And part of it is the kinds of things you are talking about. Yes, well part of his thinking is most mutual thinking. Most of the people are employed in corporations, right. Yes. Right resources a lot of the research is incorporation ashes lot of Everything Else. So how do you get the corporations to do, you know, these important tasks we need as citizens and as society. Rose right, right. And we will talk more about that. So you said to me this in march of 2012, social media was at its very beginning so two years later now where is it we talked about linkedin and talked about where that is, is the general thing you can say about where social media is two years after you told me it was beginning. Uhhuh. Rose is it beginning or in adolescence . I would say it is still in the first, first three innings, using a baseball metaphor, so, you know, obviously it is two years older so it is probably not quite yet a teenager. Rose yes. Right, right. And so i think the thing is, are used to the f have a bunch of new things that will continuey9q0 6cj conversation. Rose when you take the companies like, are they growing pains for the social Media Companies . Are they going through any kind of plateaus at it so expansive the primary challenge is keeping up with the how do you take advantage in the number of people well there are a bunch of technological rose a billion something. 1. 3 billion, i think. So there is a bunch of technological changes, i mean, for example, a lot of the globe is still coming on to the internet with smart phones and the expansion of smart phones to everywhere in the world that gives you a natural rising tide, so i think there is growing pains but a natural, a lot of the more of the world is still coming online than is online very already, so there samas receive amount of growth possible. Rose more of the world is coming online than is online. Yes. And so and then there is also, for example, what we learn about what kind of products and Service Accounts we offer with things like big data, so for example, ways which google bought, is when you begin to think about, we can do much better traffic navigation to reroute all traffic, in order to make it efficient for everybody, that is super important, and that is just the beginning tip of like whether it is genomics and how healthcare works, what year should i pick . Whether it is what information should i read today . I mean, there is all of this stuff still in its very earliest innings. I want to go one second back to bitcoin. I didnt realize, until i knew recently that you had invested in frappo and why you made that investment because . Oh, so three reasons. First and foremost, most investments have this an awesome entrepreneur, argentinean, one of the people that worked in Silicon Valley and worked in the Banking Industry before. Human resource like one. Two. Most of the people in the u. S. Dont really understand bitcoin because they go, well, but the dollar works just fine. I dont really understand the bitcoin. Rose i think we heard somebody say yes, exactly. Yes, we did. And, in fact, actually, there are a number of regions in the world, countries, where people say, well, actually i would like to be able to trade into a currency that is more global and more stable and would be easy to do and whether it is a currency or gold or whatever, can debate metaphors but an asset storage, the one coming from argentina knows that, i think bitcoin as a value store is, this goes back to the first question is it the first or last currency. When you invest, as a Silicon Valley investor you not investing where the puck is, you are investing in where the puck is moving to, it is a question of rose the way to win yes, exactly. And soso part of the thing, is look, bitcoin is super interesting where it is now but it could become essentially an electronic platform that could create a way that we do electronic contracts, that we have a financial systems, that essentially tie across the border like, bit coins are the first time i can actually email you money, just like directly here is the money it is in the email and lets go. I think those kinds of possibilities about where the puck is moving towards could be super transform if the. Rose wow. Rose a couple of other things about big companies, microsoft. What is your it may be changing in the new leadership . Well, i thought saches announcement we have to do some major shifts, cultural shifts is right, obviously the detail of what the next one is. Rose it doesnt have to be sachet to figure it out. Yes is the most substantive one i would say to sanchezs credit he is going around, look, a very busy job as the ceo of the microsoft he is come and met with me and my partners what should microsoft be doing . He is taking network so he is engaged. Rose creating his own network. Right. And precisely, one of the challenges, with any harm la including, more mik microsoft iu cant look within your own borders, what is going on in the world and what is going on in technology what is going on in the market so he came down and personally met with us and that was very impressive. Rose okay. And then the paypal and ebay. His decision as to spin it off . Yes. Well. Rose he came down on the side of well, i came down fundamentally on the side of management, which is you back management on what they are planning. Rose stockholder activist . Yes. Exactly. And longterm Value Creation matt matters and longterm Value Creation has a plan here is a management, sheer the assets hookers search the plan, here is what we are doing. I think they are both good plans with paypal inside of he bail and outside of ebay and comes down to good Intelligent Management with the plan you back. Rose you have your people having 17 appointments. There is this thing that i dont know th the answer to. Steve jobs famous for saying limit the number of products you have, the product line, and just get better and better and better at that. Yes. Rose thats what he did do apple when he came there and thats what apple wa was was whn he left there. Okay. Rose there is google, and larry page. Yes. Rose we have got capacity, we have got talent, we have got a whole range of other things, and we see the things and we see connections and so they bought android and they bought, you know, they bought note rola and it didnt work but a whole bunch of other things, they have primary things driving that company. Continues to be search and advertising on search. There are those two very different and contradictory ideas. Of and there is an easy answer to which is right. Well, they are both right but here is the unifying fram frame, a Management Team can only focus on a limited number of projects so if you have a couple of projects that are central to business that Management Team will only be focused on those, hence steve job, we focus on these things anesthesia things a small number of things very well, thats what we do. By the way larry does the same thing except what he also does is say look there is some kind of projects if i give them enough resources and have the right people running them, they can go off and run. Rose right. And that works too. Rose right. So what google x is doing request the self driving car, with project loon, which Michael Cassidy is running is super impressive, they are both just right, just who different playbooks. So not getting less attention from him. Exactly is the book is called the alliance managing tall len in the network age, remember the network age, rita, hoffman, the cofounder of inked in, thanks for joining us, see you next time. Captioning sponsored by Rose Communications captioned by Media Access Group at wgbh access. Wgbh. Org funding for charlie rose has been provided by the cocacola company, supporting this Program Since 2002. American express. And charles schwab. Additional funding provided announcer a kqed television production. Its sort of like old fishermans wharf. It reminds me of old san francisco. And youd be a little bit like jean valjean, with the teeth, whatever. And worth the calories, the cholesterol, and the heart attack you might have. Its like an adventure, you know you gotta put on your miners helmet. It reminds me of oatmeal with a touch of wet dog. I did. Inhaled it. People when they say so