Today, we’re talking about optimism.

It’s a mindset that Reid and many of our guests strongly identify with. In fact, you can hear it for yourself in today’s episode of Masters of Scale, a fresh installment of our Need to Know series.

In the series, Reid and Bob Safian have unfiltered conversations about the most important business topics impacting entrepreneurs right now. And whether they're discussing Russia, Netflix, Twitter, or crypto, Reid’s optimism shines through the conversation.

As he says at the end of the episode: “It's important to always be playing to how we build the future with optimism. You always should be saying, ‘Okay, I recognize that times are difficult. How do I play for a better future?’ And I think that's the important North Star to keep guiding your own journey, your own boat with.”

Building on this...

Today’s Action Item will require you to use that optimistic mindset to transform challenges into potential opportunities for your business.

When faced with a challenge in the wild, animals get a burst of adrenaline that supports “3 Fs”: Fight. Flight. Or Freeze. As a leader, you have a more nuanced set of choices. Our “3 Fs” are: Fight. Forget. Or Funnel.

At the top of your board, write down a current challenge your business is facing. Now, draw three branching arrows down from that challenge.

Your first arrow will point to what happens if you FIGHT it. Do everything in your power to stop it in its tracks. Is this a challenge you can beat through sheer force?

Your second arrow will point to what happens if you FORGET it. That is, if you ignore the problem and just go about your business. Is this a challenge you can simply disregard right now?

Your third arrow will point to what happens if you FUNNEL it. That is, if you take your biggest obstacle as a given, and use it to influence how your product works. Let it almost flow into a larger opportunity than the one you were initially envisioning.

In each case, don’t stop at what you would do. Play out each scenario to anticipate what would happen next. Once you’ve run through each of these three Fs, a best option will most likely appear. Funneling won’t always be the right answer. But you may be surprised at how often working with a constraint, instead of pushing it back or trying to ignore it, will lead you to a better product.

This Action Item appears in Day 7 of The Leadership Test course. You can find it in the Masters of Scale Courses app, available for iOS & for Android.

Don't forget to clear your calendar for tomorrow night's Masters of Scale Strategy Session with Reid Hoffman! This live, virtual event is the last of our Summer Sprint Series in partnership with Capital One Business – and you won't want to miss it. Here are the details: 

• Date / Time: The virtual event will open July 27 at 3pm PT / 6pm ET so you can start networking with the other attendees in the chat. Programming begins promptly at 3:30pm PT / 6:30pm ET.
• How to Join: Click this link to join the live event. If you pre-registered, please submit the same details you registered with as you log in. If you did not register in advance, no worries! You can register on the spot directly on the event's Join page.
• Who will be there: During tomorrow's Strategy Session, you'll hear from Reid Hoffman and Bob Safian (hosts of Masters of Scale and Masters of Scale: Rapid Response), as well as June Cohen (CEO of WaitWhat, the company behind Masters of Scale), and several special guests. You will join alongside fellow founders, investors, and executives in the Masters of Scale and Capital One Business communities, whom you'll have ample opportunities to connect with in the chat throughout the event.

1. First, block your calendar by clicking on one of the "add to calendar" options below, and protect your time. This event might be competing with several other demands on your schedule, but your attendance will be well worth it. 
2. Next, start to get in the right mindset. As you transition from your workday into the event, pull back from the tasks on your to-do list and start taking an aerial view of your business right now. What are your latest challenges and goals? Where are the opportunities for strategic pivots? Having these points top of mind at the start of the session will prime you to make the most out of the insights and wisdom you hear. 
3. Finally, join with an open mind. Let anything else that might be weighing on you fall to the wayside this evening. This event has the potential to fuel your inspiration, restore your energy, and reinvigorate possibility thinking – but you'll want to be fully present to truly take in those benefits. 

We’re excited to announce our alliance with The Tony Hsieh Award, recognizing changemakers & innovators who are empowering human potential in the workplace.

This year’s winner will be announced at the Masters of Scale Summit, and you or your organization are invited to apply and be recognized.

The Tony Hsieh Award, named for our dear friend, the late Zappos CEO, aims to further Tony’s mission of building innovative practices that encourage employees to maximize their potential in work, life, and beyond. The award seeks out organizations, leaders, and entrepreneurs that are challenging traditional ways of managing and empowering people. We are looking for novel practices or ideas that enhance and enrich employee experience in the workplace — leading to gains in productivity, engagement, and overall quality of life. 

Do you know of any leaders or teams who have such elevated practices? Are you one of them? The size of the organization has nothing to do with the quality and impact of the innovation. No company or team is too small to apply. It’s not about size, it's about implementation!