Michael Ovitz, Creative Artists Agency (CAA) | David Senra

Ovitz discusses what makes exceptional people like Marc Andreessen and Ben Horowitz special - their ability to process information rapidly, recall everything, and adjust their communication style. He explains how longevity creates frame of reference, which is the foundation for making better decisions.

• •Marc Andreessen's recall and processing power is unmatched - conversations feel like taking a final exam
• •The best leaders are chameleons who adjust their communication level based on who they're talking to
• •Frame of reference comes from longevity - more meetings, interactions, and experiences create better decision-making ability
• •Great co-founder relationships require complementary skills, shared vision, and mutual respect (like Ben Horowitz and Marc Andreessen)
• •"I wish I knew then what I know now" is accurate because you've seen the movie before - you know how situations will unfold

Ovitz reveals his strategy for distinguishing himself in the William Morris mailroom - arriving 2.5 hours early to study 70 years of Hollywood history in file cabinets, working longer than everyone else, and never sharing knowledge with competitors. This approach taught him the opposite lesson for building CAA: radical transparency and knowledge sharing.

• •Showed up at 6:30am when everyone else arrived at 9am - used the time to read through decades of industry files
• •Treated the other 19-25 people in his mailroom class as competitors to be eliminated, not colleagues
• •"I may not be smarter than them, but I'm damn sure working harder" - outwork became the competitive advantage
• •This competitive approach taught him the opposite lesson: when building CAA, share everything with everyone, no egos, no politics
• •Created mandatory reading lists for all CAA agents covering film history, classic directors, and industry knowledge

Ovitz explains his intuitive ability to identify exceptional people early in their careers, using examples of Nobu Matsuhisa and Wolfgang Puck. He describes how he recognized their combination of technical excellence and charisma, then actively helped build their careers through strategic introductions and deals.

• •Nobu 'filled the room' with his presence at a small restaurant on La Cienega Boulevard - combination of master chef skill and magnetic personality
• •Wolfgang Puck at Ma Maison (plastic patio furniture in a parking lot) showed charisma by going table-to-table, remembering names, creating California cuisine
• •Got Wolfgang on Good Morning America by getting ABC president drunk, having him sign a napkin contract, then holding him to it
• •Introduced Nobu to Robert De Niro, which launched the global Nobu restaurant empire
• •Frame of reference from eating out every meal allowed him to benchmark and identify the best talent in any field

Ovitz shares how David Rockefeller raised money for MoMA's new museum by taking trustees to dinner and never once asking for money - the ultimate example of restraint and sophisticated salesmanship. This three-hour dinner about art, politics, and culture resulted in Ovitz making a larger donation than planned.

• •Rockefeller spent three hours at dinner discussing everything except money - art, politics, travel, his 10,000 index card contact system
• •Never said one word about contributing or fundraising during the entire evening
• •Ovitz made a much larger donation than planned simply because he wanted to contribute after the experience
• •Rockefeller did this same dinner with every trustee - raised all the money for the new museum without asking anyone for a dime
• •This level of restraint and sophistication in sales was beyond what even Ovitz thought possible

Ovitz discusses his relationship with Sony founder Akio Morita, who moved his family to New York in 1951 when anti-Japanese sentiment was still strong. He shares Morita's story of hiring Norio Ohga after receiving a 10-page handwritten critique of Sony's product, demonstrating the importance of accepting criticism and finding talent.

• •Morita showed incredible courage moving his family to New York in 1951, just years after WWII when anti-Japanese sentiment was high
• •Hired Norio Ohga (who became Sony president) after Ohga sent a 10-page handwritten critique destroying Sony's reel-to-reel recorder
• •Instead of being defensive, Morita implemented all the changes and offered Ohga a job - moved him through the company rapidly
• •Morita's mission was bigger than Sony - wanted to make Japan known for quality products, not just Sony
• •Steve Jobs and Jeff Bezos both studied Morita intensely - Bezos learned the importance of having a mission bigger than yourself

Ovitz reveals the core operating principles that made CAA revolutionary: absolute honesty (if you don't know, say 'I don't know'), taking notes on everything, and obsessive follow-up. He contrasts the lying culture of Hollywood with CAA's integrity-first approach.

• •Revolutionary rule: If you don't have an answer, say 'I don't know, I'll call you back' - unheard of in 1974 Hollywood
• •Entertainment industry had gradations of lying - movies (3 years to make = most lies), music (dirty business), TV (no time to lie)
• •Every meeting had a scribe taking notes for follow-up - follow-up was the key to everything
• •"You don't even have to be smart if you have good follow-up" - it adds points to your intelligence
• •Example: Called the junior person who originated an idea at 6:30am to give him a complete update so he didn't feel cut out

Ovitz explains his strategic vision of selling Hollywood studios to Japanese companies in the 1980s when studios were in financial trouble. He saw cheap Japanese financing as a way to save legacy businesses while increasing CAA's leverage, despite being criticized on the cover of Newsweek.

• •Recognized studios were in trouble when Universal's market cap equaled just the value of their Burbank real estate
• •Japanese companies had cheap money and couldn't move the studios out of the country - perfect strategic fit
• •Sold Columbia Records and Columbia Pictures to Sony, Universal to Matsushita, got financing for Warner Bros, saved MGM
• •Strategy served multiple purposes: saved legacy businesses, provided cheap financing, increased CAA's leverage with buyers
• •With 75% market share of talent AND relationships with studio owners, CAA moved up another notch in the ecosystem

Ovitz describes how CAA disrupted the advertising industry by getting movie directors to do commercials during downtime. The Coca-Cola deal showcased his approach: delivered 35 commercials for the same budget Coke spent on 6, then sent back a $3 million check because the actual cost was only $30,000.

• •Everyone said movie directors won't do advertising - Ovitz proved them wrong by offering directors $1M for 5 days work during downtime
• •Coke was doing 6 commercials per year - CAA delivered 35 for the same budget using efficiency and creativity
• •Created the Coca-Cola polar bears campaign (still used 40 years later) and got Quincy Jones to redo the theme song
• •Sent back a $3M check when the actual cost was $30K - used this to negotiate higher fees for CAA's services
• •Proved CAA could save clients money on production while charging premium fees for strategy and talent

Ovitz reveals his system for staying ahead of culture: subscribing to 210 magazines, looking at 200 art images daily, and constantly researching everything from cars to watches to technology. This obsessive curiosity gave him the knowledge to connect with any client on their interests.

• •Subscribed to 210 magazines personally - didn't read every article but flipped pages, read headlines, first paragraphs
• •Read women's fashion magazines because stylists are 6 months ahead of the curve - helped him talk to actresses and their stylists
• •Spent 3 hours talking to Paul Newman about cars (his passion) on their first meeting - never discussed his career
• •Looks at 200+ art images daily, maintains a pile of 20 research notes on interesting products/technology to investigate
• •"Knowledge is power" - practical knowledge + research knowledge + intellectual knowledge + deep curiosity = unbeatable edge

Ovitz reflects on working every waking hour while building CAA and admits that working 10% less wouldn't have affected his professional success but would have made him happier. He distinguishes between working toward financial goals versus working for self-enrichment.

• •"Every waking hour was a working hour" when building CAA - complete obsession with the business
• •In retrospect, working 10% less wouldn't have changed professional outcomes but would have improved personal happiness
• •Distinguishes between work (client meetings, deals) and professional research (reading, studying, learning) - both are valuable
• •Never had a mentor or adviser like himself when building CAA - wishes he had someone who had 'seen the movie before'
• •Now serves as that adviser to many successful people, protecting them like a 'protective mother' and learning from them in return