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Dave Butler, Co-CEO Of Dimensional Fund Advisors, Wants Characters With Character

By Don Yaeger

13-Time New York Times Best-Selling Author & Leadership Coach

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Some years ago, when Dave Butler played with Steve Kerr on the US Men’s National Basketball Team, the two players were talking about Kerr’s college team, the University of Arizona, and Butler confided in Kerr that he had always considered Arizona to be a team that comprised not only great athletes and talented players but also good people.

How did such a team come to be gathered there, all in one place, wondered Butler, who starred at the University of California-Berkeley?

Kerr had an answer—a very specific one. “Our coach Lute Olson would invite a guy in for the weekend,” Olson told Kerr. “This would be a top player in the country, and we’d introduce him to all of the guys, and then everybody would all go out and get to know each other a little. Then, on Monday evening, Coach would rally the team members in the locker room and ask them one simple question: Do you want to play with this guy? And if the answer wasn’t a unanimous ‘Yes!’, he’d stop recruiting that player, even if he was the top player in the country.”

Both Butler’s and Kerr’s playing days are behind them. Kerr is still involved with the game as the coach of the Golden State Warriors and Men’s National Team, but Butler has moved to financial services, serving as the Co-CEO of Dimensional Fund Advisors, a firm that has grown from $10 billion in assets under management to more than $700 billion in the 25 years since Butler joined the team.

And he still remembers the lesson of that conversation with Kerr. No, the lesson wasn’t mainly about the importance of team chemistry, although that is very important. The deeper lesson was about the importance of including team members in the decision-making process. That, said Butler in a recent interview, was the real genius behind Coach Olson’s method.

“I’m a big believer in trying to get people to buy into the new member joining the team at Dimensional,” explained Butler. “And we begin with the most junior person. We ask them, ‘What do you think?’ There’s no reason to start with me because then everyone will just agree. I think leaders have to try to figure out how to get people to actually voice their opinion without being fearful that it will go against the grain or be seen as negative.”

Successful team building, Butler noted, is about seeing the concept of “fit” in a new light, one that seeks not to hire a “group of homogeneous people”—think about a basketball team with five shooting guards or five centers!—but to identify and recruit “characters with character.”

How can other leaders seeking to deepen their pool of talent and character do it? Butler offers several powerful ideas, including these:

The trick to building a culture filled with characters with character, avers Butler, is first to “get out of your own way” by not trying to have the answer to everything. And second, to reassure your team that they too should get out of their own ways by accepting the idea they don’t have to be selfish or self-obsessed to be a valuable and valued contributor. “I always tell my teammates, ‘Don’t worry about yourself. Worry about somebody else, and you’re gonna feel much better about everything.’”

Meet Don Yaeger

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13-Time New York Times Best-Selling Author & Leadership Coach

As a Hall of Fame keynote speaker, longtime Associate Editor for Sports Illustrated, and 12-time New York Times Best-Selling author, Don Yaeger is one of America’s most provocative thought leaders. From walking into Afghanistan with the Mujahadeen to living with football legend Walter Payton, Don has spent three decades embedded with the world’s greatest "Greats." Now a sought-after executive coach and host of the Corporate Competitor Podcast, he translates the lessons of sports and business legends into actionable strategies for building a culture of greatness.
Contact Don Yaeger
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413 N. Meridian St. Tallahassee, FL 32301

(850) 412-0300