Angela Ahrendts - Former CEO of Burberry

WEBVTT
Kind: captions
Language: en

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Sal: Well I just wanted
to introduce everyone

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to Angela Ahrendts.

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Just as a little bit of background

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on how all of this happened.

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You all know I was just
in England two weeks ago

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and as part of that you came to the talk

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at the London School of Economics

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and then the next day we
met at Heathrow Airport.

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Angela: Yup.

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Sal: I had my $6 Old Navy
shirt feeling very insecure

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the entire time.
(Angela laughs)

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Both Esther and I were
there and you inspired us.

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When you said you're
going to be in this area

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we're like well we would love you to do

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the same thing with the team

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just talk about what you're
doing etcetera, etcetera.

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If you could talk a little
bit about just how you ...

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I mean fashion, the world
of fashion is this world,

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I mean it's not obvious to most people

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how does someone get in to it

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and especially get to the
level that you've gotten.

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How did you start and what kind of,

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at least at the early stages
allowed you to get here?

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Angela: I mean honestly
it's not a dissimilar story

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to yours, right?

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My thing is you ...

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I think the greatest
thing that anybody can do

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when they're young is
discover their passion

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and what they love.

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I know it sounds really, really terrible

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but I love stuff and I love to shop

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and I love fashion magazines
and I love to sow and create.

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It was the only industry
I had to get in to

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but I went to university

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and signed up for all these design classes

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and realized I really
wasn't that creative.

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I had a really strong opinion

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on what everybody else was doing.

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I had a professor say that
we call you a merchant.

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I'm like "Okay" and so then I signed up

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for a lot of merchandising
and marketing courses.

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My university degree is in
merchandising and marketing.

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In the world of what we do I always say

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I'm the monkey in the middle.

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We have Christopher Bailey
who's the Chief Creative Officer

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and he is so creative and so brilliant

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and his whole creative
team does all those videos

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but then, so that's on my right

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and on my left we have the
chief financial officer,

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we have our chief operating officer,

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we have a number of our teams

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that have just arrived as well.

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You have this balance so
I will say I'm a 50, 50.

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I am half left brain analytical,

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I am half right brain creative

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and that was actually one of the reasons

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that I wanted to chat with Sal.

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Because I said someday as you guys

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start to take over the world,

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you're going to have to also

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start to introduce some
right brain curriculum

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and the Burberry
Foundation would be honored

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to help you start creating
some of those things

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when you're already down
the road [unintelligible].

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Sal: Yeah, and no we're
already starting a little bit

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and we could talk more about that.

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No, absolutely and I think ...

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I mean say you're not creative,

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I mean that I think you're
really underselling your …

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Angela: Yeah, the design creative.

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Sal: You obviously had
a very strong aesthetic,

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you had a sense for what connective …

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Angela: Yeah, again I'm
absolutely a merchant

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and I will tell you the
reason Christopher and I

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created the foundation is this,

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because we are both creative thinkers.

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Sal: Right.

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Angela: We feel very
strongly that the curriculum

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specifically in America
has become so left brain,

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so much of the arts and
things have been cut out.

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It is I think for where the world's going

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we need creative thinkers.

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We need and so many times
they're getting lost

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out of the system, so we
created the Burberry Foundation.

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We give 1% of our profits
into the Burberry Foundation

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and what we do is, we
try and pick up the youth

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that is starting to fall out of the system

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because they think they're
dumb because they don't.

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Hopefully we can help
turn them on to you guys

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to help them.

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If they're still just not left brain

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but they're incredibly creative thinking.

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We bring as many of them as we can.

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We show them a whole another world

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that companies like us need

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and that's been our calling.

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Sal: Yeah, I know it's incredible.

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I mean you yourself you said,

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“Okay I'll be a merchant”.

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A professor tells you this

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and you just go to New York

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and then you're not even 30

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and you're the president of Donna Karan?

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(Angela laughs)
Is that right?

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Angela: Yeah.

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Sal: How does that happen?

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Is that normal?

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Are there a lot of 20 something's

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running a major fashion
houses in the world?

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Angela: Probably not and I
will tell you I'm really guilty

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because I'm not great
talking about myself,

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I'm just not because
I'm only as good always

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as the great teams that are around me

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and no different than you guys.

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Yes, I think what happens always

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is when you discover who you are

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and you discover your passion

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and then it's not work at your life

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and so you just get in to that zone.

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I was so fortunate that
met the right people,

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things fell into place,

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absolutely worked my butt
off because I was single,

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alone in New York and why not.

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It's all I did was, but I
found my zone, I found …

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Sal: Was there a moment where …

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I just find if a member
of my family says "Hey,"

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"I'm going to go to New York"

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"and I'm going to go work in fashion,"

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like "Okay, I'll see if
I can help support you"

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"at some point or …"

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Just the left brain, the
left brain side of me.

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I mean how did you break in

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and then obviously left
such a big mark with people

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that by the time you weren't even 30

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you're a president of a
major fashion organization?

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Angela: It's funny, I don't
think of any different

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than a great athlete or a musician or a …

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I think that what happens

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is this is all what I've ever done.

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I've always just stayed in my lane

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and then you become ...

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Whether you're a footballer
or whether you're ...

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I didn't jump around,
this is all that I've done

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and I have always been
so passionate about it.

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I think when you direct your energy

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and you become so passionate

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and you unite people, right?

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You lead people all around
believing in something

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and then things just fall into place.

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I know that, and when I say things,

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the revenue, the profit, right?

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I never went in saying,
"I'm going to do this".

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I went in saying, "What if we did this?"

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I've always been a dreamer.

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My father used to always say,

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"Take off your rose-colored glasses"

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and I would always say "No".

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Now I don't have to, I can keep dreaming

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but the important thing
I've learned is though

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I have to get enough people, right?

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I have to surround
myself with enough people

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that can help execute that dream now

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and that's all that I've ever done.

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I don't want to over simplify it

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but I found my zone,

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I absolutely love what I do,

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it is not work at all.

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I have never once woke
up in the morning said,

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"Oh God, I got to go to work".

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It's not work, this is my life.

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Everywhere that I've been

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because it's not work

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and the Monterey at Burberry

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or anywhere that I've been

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because the stronger companies get

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then the more they can do

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and the bigger influence they have.

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At Burberry we've always said

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that we have the power to
touch and transform lives

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through the power of our performance.

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The bigger and the stronger we get,

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the more we can do

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and that's just always been ...

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I'm from the heart of Midwest,

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real strong family faith up bringing

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and I have been raised to give.

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That's how I was raised

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and so why wouldn't you
apply that back in business

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and so it just ...

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Sal: I think you are underselling
yourself a little bit

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Angela: Thank you.

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I do want because the
interesting about this

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and why we video them is I think

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just the Khan Academy user base,

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there's a lot of young people out there

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who would say "How do I do that?"

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If you had advice for
someone who's 16 years old

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or 20 years old and they
find this world intriguing,

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what should they develop in themselves?

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How should they think about the world

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and what should they do?

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Angela: Well, and I always say

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to the fashion industry is deceiving

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because everybody just thinks
it's only this creative part

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where in a company like Burberry

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there are 18 different departments

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that comprise the company.

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We need, we hire a lot of
people from Silicon Valley.

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We need great, we have 130 people

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just in the IT department in the company.

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People don't realize that
so we need extreme right

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and we need extreme left.

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I think sometimes the fashion
industry gets a short,

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it's the short stick
sometimes when they think

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"It's just fashion, it's just ..."

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In order to create and here's my thing

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I always say that what we're doing

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is we're creating a great
brand and a great company

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and we happen to the
in business of fashion.

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We didn't set out to create
a really great fashion,

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we set out to create a great brand.

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I say that because there's
a part of me that says

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that is your mission as well.

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Sal: I mean following on that

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but I do want to think about,

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well what in your mind is,
what does a brand mean?

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I've heard multiple definitions of a brand

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and how would you view Burberry's brand

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and how would you view
our brand in the same,

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they're very similar.

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(Angela laughing)

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Exploring a line of overcoats.

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Angela: To me a great
brand and here's my thing,

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think of yourself and when
you interact with products.

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What coffee do you drink every morning

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or you might walk into Starbucks

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or you might walk in the ...

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You might have Apple
products, you might ...

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How do you feel about

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and so you want to be a part of that brand

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because you're proud to
be a part of that brand

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because that brand makes
you feel a certain way.

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You trust that brand and it's authentic

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and it doesn't ever let you down.

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It exceeds your expectations

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so you want to engage with it, right?

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Those are all of the
attributes of a great brand,

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honesty, integrity, authenticity, quality

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but always doing what you …

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To have a great engagement
or what's the word ...

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Great brand presence,

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there has to be a very
trusting relationship

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with your constituency.

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In that way we are absolutely

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because your users

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they have to trust what
you're telling them.

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I mean and if you're wrong … (laughs)

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Sal: Yes, happens every now and then.

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(Angela laughing)

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Angela: To me it's a part
of what a great brand is

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and in Burberry's case and
that's how we measure it.

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Sal: How do you think about these things?

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You joined Burberry in 2006.

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I guess in the previous five or 10 years

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Burberry had been rejuvenated.

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If you could talk a little bit about that

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rejuvenation before you got there

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and then when you took over the job

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and what do you tell yourself?

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How are you going to steer the ship?

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Angela: What I think happens

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and again we're 158 years
old and you guys are ...

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What you're building right now ...

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No but so we had gone through a lot

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and so we got the whole
management team together.

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You're starting out that way
but we got the team together

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and said, "What is our core?"

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"What is our core product proposition"

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"and what's our core purpose?"

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We realized that 158, it's 150 years then

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but 158 years ago now,
we were born from a coat.

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We had our own weaving facility
in the North of England,

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we had our own factory to
produce all of those coats.

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It's interesting we were driving
innovation everywhere else

00:11:35.472 --> 00:11:37.021
but in our core product.

00:11:37.021 --> 00:11:39.592
Whenever we talked about global warming

00:11:39.592 --> 00:11:40.972
and they gave me all the reasons

00:11:40.972 --> 00:11:42.286
why we couldn't do that.

00:11:42.286 --> 00:11:46.765
It was like “No, no, no”,
every great brand ...

00:11:46.765 --> 00:11:48.535
What would Starbucks be without coffee?

00:11:48.535 --> 00:11:51.676
I mean every great
brand has to have a core

00:11:51.676 --> 00:11:53.565
and I think people get bored with that.

00:11:53.565 --> 00:11:56.932
As you grow bigger and
bigger what is your core

00:11:56.932 --> 00:11:59.747
products proposition
and don't ever lose it.

00:11:59.747 --> 00:12:01.610
Keep innovating that core

00:12:01.610 --> 00:12:03.280
because people get bored really easy.

00:12:03.280 --> 00:12:05.810
Then also what is your core purpose

00:12:05.810 --> 00:12:10.011
and because I don't believe
people just want to work,

00:12:10.011 --> 00:12:12.666
I think people all want
deeper meaning in their lives.

00:12:12.666 --> 00:12:18.423
It was hard for us, people
don't just want to make stuff.

00:12:18.423 --> 00:12:21.358
People want to make stuff that has meaning

00:12:21.358 --> 00:12:24.687
and has a purpose and so
we created our core values

00:12:24.687 --> 00:12:28.798
which are to protect,
explore, and inspire.

00:12:28.798 --> 00:12:30.795
We didn't come up with those,

00:12:30.795 --> 00:12:33.811
we took those out of a book
that Thomas Burberry wrote

00:12:33.811 --> 00:12:36.394
158 years ago when he was 21 years old

00:12:36.394 --> 00:12:37.707
and he founded the company.

00:12:37.707 --> 00:12:41.166
We always say his spirit
lives on and it should

00:12:41.166 --> 00:12:43.262
because it was his
company, it was his vision

00:12:43.262 --> 00:12:46.320
and he created that
waterproof gabardine fabric

00:12:46.320 --> 00:12:48.869
to protect the military in the trenches

00:12:48.869 --> 00:12:51.038
that's why he created the
trench coat, etcetera.

00:12:51.038 --> 00:12:53.612
We said that is our core,

00:12:53.612 --> 00:12:55.538
that's what he founded the company on.

00:12:55.538 --> 00:12:57.175
How do we make the trench coat

00:12:57.175 --> 00:12:59.777
the most cool, relevant,
hip thing in the world?

00:12:59.777 --> 00:13:01.388
That's what we are born from.

00:13:01.388 --> 00:13:03.419
Nobody else can say that but us.

00:13:03.419 --> 00:13:06.346
To revitalize and transform the company

00:13:06.346 --> 00:13:08.235
we simply went back to the basics.

00:13:08.235 --> 00:13:10.097
We went back and revitalized our core

00:13:10.097 --> 00:13:11.743
and we took that category

00:13:11.743 --> 00:13:13.669
which was about 22% of the business,

00:13:13.669 --> 00:13:15.468
seven and a half, eight years ago

00:13:15.468 --> 00:13:17.367
today it's half of the business.

00:13:17.367 --> 00:13:19.347
When you watch a runway show,

00:13:19.347 --> 00:13:21.868
nearly every item that goes down

00:13:21.868 --> 00:13:25.275
has some type of a trench
coat or some type of.

00:13:25.275 --> 00:13:27.760
The innovation that
we've driven in that core

00:13:27.760 --> 00:13:29.281
and that has single-handedly ...

00:13:29.281 --> 00:13:31.649
Harvard Business reviewed
the great article on

00:13:31.649 --> 00:13:34.715
just that topic revitalizing the core.

00:13:34.715 --> 00:13:36.414
Sal: I mean how do you decide on that?

00:13:36.414 --> 00:13:38.661
Is that just a gut instinct,
I mean or do you ...

00:13:38.661 --> 00:13:40.011
Is there some data that you look ...

00:13:40.011 --> 00:13:41.843
We look at all the brands that have a core

00:13:41.843 --> 00:13:43.076
versus don't have a core.

00:13:43.076 --> 00:13:45.802
On that and then as you move

00:13:45.802 --> 00:13:47.960
and continue to innovate
and get new products,

00:13:47.960 --> 00:13:49.708
I'm sure everyday someone comes to you

00:13:49.708 --> 00:13:52.020
"Hey, we should have a line
of whatever it might be",

00:13:52.020 --> 00:13:54.602
how do you decide?

00:13:54.602 --> 00:13:56.871
How much of it is analytically driven

00:13:56.871 --> 00:14:00.479
and how much of it is gut
or whatever else driven?

00:14:00.479 --> 00:14:02.466
Angela: It's a great question.

00:14:04.604 --> 00:14:06.002
I'm going to answer it three ways.

00:14:06.002 --> 00:14:09.017
One is we always say that we
are a creative thinking company

00:14:09.017 --> 00:14:11.753
and everything we do
is driven by intuition.

00:14:11.753 --> 00:14:15.263
Then we can fuse ourselves with facts

00:14:15.263 --> 00:14:18.214
but we always lead with intuition.

00:14:18.214 --> 00:14:21.268
Because we always say that we do value

00:14:21.268 --> 00:14:23.975
feeling over knowing

00:14:23.975 --> 00:14:26.016
because if we only focused on knowing,

00:14:26.016 --> 00:14:27.475
we'd never move forward

00:14:27.475 --> 00:14:28.849
because you can't prove something

00:14:28.849 --> 00:14:30.028
that hasn't been done before.

00:14:30.028 --> 00:14:32.866
We are and that is a part

00:14:32.866 --> 00:14:34.675
of being a creative thinking culture.

00:14:37.613 --> 00:14:40.290
I forgot my other two

00:14:40.290 --> 00:14:42.054
because I told you
there were three and I …

00:14:42.054 --> 00:14:43.737
Sal: Well you say you
confuse yourself with facts,

00:14:43.737 --> 00:14:44.729
I mean what does that mean?

00:14:44.729 --> 00:14:49.001
Does that mean that you feel
or collectively not just you,

00:14:49.001 --> 00:14:50.011
the whole organization

00:14:50.011 --> 00:14:51.071
feels like something
is the right direction

00:14:51.071 --> 00:14:52.744
but what if someone says, "Hey, but look"

00:14:52.744 --> 00:14:54.564
"everyone who's gone in
to this phase before"

00:14:54.564 --> 00:14:58.980
"has failed or there's 800
players already in that market"

00:14:58.980 --> 00:15:01.732
"that they got zero margin
on what they're doing."

00:15:01.732 --> 00:15:05.504
It's a commodity, do you ignore that?

00:15:05.504 --> 00:15:06.709
Do you sometimes ignore that?

00:15:06.709 --> 00:15:08.518
Do you say, “No, we
still feel good about it"

00:15:08.518 --> 00:15:09.803
and you move ahead?

00:15:12.587 --> 00:15:14.148
Angela: Seven years ago,

00:15:14.148 --> 00:15:16.479
came up with all the hard,
we call them hard strategies.

00:15:16.479 --> 00:15:18.763
Those are all the ones
that are very fact based.

00:15:18.763 --> 00:15:20.454
When we talked about retail led growth

00:15:20.454 --> 00:15:22.021
brought in the consultant company

00:15:22.021 --> 00:15:25.136
told that, I said, "Tell me
every key market in the world"

00:15:25.136 --> 00:15:28.467
"that has, where are peers
have at least two stores"

00:15:28.467 --> 00:15:29.735
"and we have none."

00:15:29.735 --> 00:15:32.140
Then tell me their
productivity per square foot

00:15:32.140 --> 00:15:35.860
so we had a strategy, put all
the hard metrics behind it

00:15:35.860 --> 00:15:37.942
and but the gut …

00:15:37.942 --> 00:15:41.099
Our instincts were, and
we were 75% wholesale

00:15:41.099 --> 00:15:44.784
when I started, today we are 75% retail,

00:15:44.784 --> 00:15:46.797
our own stores direct to consumer.

00:15:46.797 --> 00:15:49.976
Our instincts said, we had
to go direct to consumer,

00:15:49.976 --> 00:15:52.838
we had to control the brand,
the environment, everything.

00:15:54.191 --> 00:15:56.224
Again brought in the firm

00:15:56.224 --> 00:15:57.735
but we did that on every strategy

00:15:57.735 --> 00:16:00.497
and they would reaffirm etcetera.

00:16:00.497 --> 00:16:02.431
Then I put them in front of the board.

00:16:02.431 --> 00:16:03.961
Very first been in the company

00:16:03.961 --> 00:16:05.247
six months strategies are done,

00:16:05.247 --> 00:16:07.717
everything's outlined, we know
exactly where we're going.

00:16:07.717 --> 00:16:10.099
At the very end they told the board

00:16:10.099 --> 00:16:11.677
and we said that that point in time

00:16:11.677 --> 00:16:14.219
we would double the revenue
and the profits in five years.

00:16:14.219 --> 00:16:18.298
They, the guy, that I won't
mention the company on video

00:16:18.298 --> 00:16:20.378
but the guy sense up at
the end of the meeting

00:16:20.378 --> 00:16:22.135
and the board says, "Well how do you feel"

00:16:22.135 --> 00:16:23.493
"about this going through it?"

00:16:23.493 --> 00:16:27.011
He says, "There's about a 5% probability"

00:16:27.011 --> 00:16:28.406
"that they will do this".

00:16:28.406 --> 00:16:29.459
Sal: Who's this guy?

00:16:29.459 --> 00:16:31.737
Angela: Well he works for
a huge consulting firm

00:16:31.737 --> 00:16:32.968
and I'm not going to mention the firm.

00:16:32.968 --> 00:16:33.848
Sal: Okay, all right.

00:16:33.848 --> 00:16:35.288
Angela: We had them come
in and for six months

00:16:35.288 --> 00:16:38.306
we had them work with us on
validating these strategies.

00:16:38.306 --> 00:16:41.056
Sal: Right, and so the
strategy was based through

00:16:41.056 --> 00:16:42.119
as a number strategy

00:16:42.119 --> 00:16:43.694
where you're looking at the retail density

00:16:43.694 --> 00:16:44.908
in different geographies

00:16:44.908 --> 00:16:46.440
and how productive those stores are.

00:16:46.440 --> 00:16:50.221
That is what you used to decide
where you're going to go?

00:16:50.221 --> 00:16:53.234
Angela: Yeah, again there's always both.

00:16:53.234 --> 00:16:54.692
There's always the …

00:16:54.692 --> 00:16:56.518
Well and that was the other
part of the thing I just forgot

00:16:56.518 --> 00:16:58.392
so one was intuition but
the other is balance.

00:16:58.392 --> 00:16:58.874
Sal: Right.

00:16:58.874 --> 00:16:59.386
Angela: Right?

00:16:59.386 --> 00:17:02.535
We talk a lot about the
right and the left, a lot.

00:17:02.535 --> 00:17:06.282
When we had five hard strategies

00:17:06.282 --> 00:17:07.795
and we had five soft strategies.

00:17:07.795 --> 00:17:09.369
The foundation was a soft strategy,

00:17:09.369 --> 00:17:11.232
the culture was the soft,

00:17:11.232 --> 00:17:14.245
all of the [company] had been, free lunch,

00:17:14.245 --> 00:17:15.774
the benefits for all of these stuff,

00:17:15.774 --> 00:17:17.037
or all the soft strategies

00:17:17.037 --> 00:17:19.607
and we said that these will enable those.

00:17:19.607 --> 00:17:23.444
Just focusing on these, we
may not get the job done.

00:17:23.444 --> 00:17:27.220
The consulting firm didn't work
with us on the soft things,

00:17:27.220 --> 00:17:28.851
they only worked with us on the hard.

00:17:28.851 --> 00:17:31.415
When they told the board
there's only 5% probability,

00:17:31.415 --> 00:17:34.601
the board kind of like we're nuts

00:17:34.601 --> 00:17:38.137
but we actually achieved
the plan a year early.

00:17:38.137 --> 00:17:40.184
Sal: They thought it was a 5% probability

00:17:40.184 --> 00:17:42.637
because they've advised
on lot of the fact part

00:17:42.637 --> 00:17:43.867
Angela: They thought

00:17:43.867 --> 00:17:44.828
we were being far too aggressive.

00:17:44.828 --> 00:17:45.786
Sal: On the aggressive, when you said

00:17:45.786 --> 00:17:47.613
you're going to double
your revenues, you said?

00:17:47.613 --> 00:17:49.007
Angela: And profit in five years.
Sal: And profit

00:17:49.007 --> 00:17:51.221
in five years, that was the
part that they were giving you

00:17:51.221 --> 00:17:52.448
Angela: Absolutely.

00:17:52.448 --> 00:17:54.689
Sal: They said, "I'm sure
you'll grow etcetera, etcetera."

00:17:54.689 --> 00:17:57.217
But to really …

00:17:57.217 --> 00:17:59.833
The soft things are just
stuff that felt right?

00:18:00.740 --> 00:18:05.095
Angela: The soft things were that we knew,

00:18:08.079 --> 00:18:11.312
I knew that we would be
as good as our people.

00:18:11.312 --> 00:18:15.353
That we had to build a team,

00:18:15.353 --> 00:18:17.642
we had to unite and connect this culture

00:18:17.642 --> 00:18:20.914
and they had to believe
in the dream, right?

00:18:20.914 --> 00:18:22.768
This is leadership

00:18:22.768 --> 00:18:25.664
and they had to lead everybody.

00:18:25.664 --> 00:18:27.592
We were 3,200 people then

00:18:27.592 --> 00:18:29.705
and some of them, we had people then

00:18:29.705 --> 00:18:31.201
with the 30 years, 40 years right?

00:18:31.201 --> 00:18:34.210
How do you get everybody
united around a new vision,

00:18:34.210 --> 00:18:35.181
a new dream?

00:18:35.181 --> 00:18:37.666
The thing is this they have to believe,

00:18:37.666 --> 00:18:41.202
every single person has to
believe you can do this.

00:18:41.202 --> 00:18:43.171
That's the positive energy

00:18:43.171 --> 00:18:44.748
that comes around something

00:18:44.748 --> 00:18:46.566
when you are breaking new ground

00:18:46.566 --> 00:18:49.715
or trying to do something
transformative like you are.

00:18:49.715 --> 00:18:53.701
If they don't believe,
and I told them upfront

00:18:53.701 --> 00:18:56.395
after that six months I
said, "If you do not believe"

00:18:56.395 --> 00:18:57.721
"that we're going to do this,"

00:18:57.721 --> 00:18:59.157
"then maybe you should go now."

00:18:59.157 --> 00:19:03.594
Because we knew we wanted to do something

00:19:03.594 --> 00:19:05.176
really big and transformative.

00:19:05.176 --> 00:19:09.036
We used our instincts, we
confused our self to the facts

00:19:09.036 --> 00:19:11.778
and then we build a
very balanced strategy,

00:19:11.778 --> 00:19:14.437
hard and soft, very balance teams.

00:19:14.437 --> 00:19:19.349
We need creative's but we
need operational excellence

00:19:19.349 --> 00:19:21.392
and the strategies were built that way.

00:19:22.253 --> 00:19:24.973
I always say in every
single store we have,

00:19:24.973 --> 00:19:27.709
we need left brain and we need right.

00:19:27.709 --> 00:19:29.490
in every country, in every region

00:19:29.490 --> 00:19:32.470
because I don't think
you'll build a great brand

00:19:32.470 --> 00:19:36.170
that resonates and touches
people without both.

00:19:36.170 --> 00:19:38.857
You need the engagement
but you need the reach

00:19:38.857 --> 00:19:40.631
and they're very different.

00:19:40.631 --> 00:19:42.207
Sal: The projection of doubling

00:19:42.207 --> 00:19:43.780
and there's no precedent for this?

00:19:43.780 --> 00:19:45.493
I mean that's why it was,
that's probably why …

00:19:45.493 --> 00:19:47.165
Angela: Well the precedent
was, they had done it before.

00:19:47.165 --> 00:19:48.054
Sal: I see.

00:19:48.054 --> 00:19:49.953
Angela: The probability of
a company doing it twice

00:19:49.953 --> 00:19:52.034
was what really took the odds down.

00:19:52.034 --> 00:19:54.102
Sal: Right, I mean through that process

00:19:54.102 --> 00:19:56.846
were there moments where
you yourself were like

00:19:56.846 --> 00:19:58.751
"Gee, I don't know if
this is going to happen."

00:19:58.751 --> 00:20:00.126
I've got …

00:20:00.126 --> 00:20:01.597
Angela: Never.

00:20:02.273 --> 00:20:03.335
Never.

00:20:03.335 --> 00:20:04.954
Sal: That's why I am too, I never doubt.

00:20:04.954 --> 00:20:06.249
Angela: Never.

00:20:06.249 --> 00:20:07.081
Sal: I'm always doubting.

00:20:07.081 --> 00:20:07.908
Angela: You are not.

00:20:07.908 --> 00:20:08.701
Sal: Not really.

00:20:08.701 --> 00:20:09.630
Angela: No, you're not.

00:20:09.630 --> 00:20:11.251
No, I think he's a
bigger dreamer than I am.

00:20:11.251 --> 00:20:13.052
Sal: Maybe, we can compete.

00:20:13.052 --> 00:20:16.126
Angela: Yeah but you have
to because you are on,

00:20:16.126 --> 00:20:20.507
you are disrupting a
sector that is so overdue

00:20:20.507 --> 00:20:23.001
to be disrupted, it is so overdue.

00:20:23.001 --> 00:20:25.728
The next generation is in your hands

00:20:25.728 --> 00:20:27.203
and they need you to do this,

00:20:27.203 --> 00:20:29.218
the country needs you
to do what you're doing.

00:20:29.218 --> 00:20:32.324
You got to do it and you got to keep going

00:20:32.324 --> 00:20:34.304
and you got to get your reach out there,

00:20:34.304 --> 00:20:35.609
you are engaging.

00:20:35.609 --> 00:20:37.624
I mean the fact that 30,000 teachers

00:20:37.624 --> 00:20:39.487
are using your content in schools.

00:20:39.487 --> 00:20:42.339
I son't know, it's unbelievable.

00:20:42.339 --> 00:20:45.917
Get it to 100, get it to
200, I mean just don't stop.

00:20:45.917 --> 00:20:48.187
Sal: Can you Skype in
to our company updates,

00:20:48.187 --> 00:20:50.596
it would be very …
(people laughing)

00:20:50.596 --> 00:20:52.721
Let's do this.

00:20:54.105 --> 00:20:56.526
Angela: That's how I feel.

00:20:56.526 --> 00:20:57.338
Sal: Yeah.

00:20:57.338 --> 00:20:58.505
Angela: I mean that is how I feel

00:20:58.505 --> 00:21:02.259
and if you, and it's not going
to be easy but don't stop.

00:21:02.259 --> 00:21:03.050
Sal: Yeah.

00:21:03.050 --> 00:21:07.532
Well that by itself is really
powerful advice if you'd ...

00:21:07.532 --> 00:21:10.411
I mean what would you tell us as we go,

00:21:10.411 --> 00:21:13.976
I mean you're 158 years
old, we're 158 weeks old.

00:21:13.976 --> 00:21:16.483
(people laughing)
How do we …

00:21:16.483 --> 00:21:18.038
Any advice for …

00:21:18.038 --> 00:21:21.262
I mean beyond that just
kind of alter focus,

00:21:21.262 --> 00:21:23.235
believe, power through.

00:21:23.235 --> 00:21:25.019
Angela: Definitely focus

00:21:25.019 --> 00:21:27.313
and we still do the same thing today.

00:21:27.313 --> 00:21:29.130
We always say that every year

00:21:29.130 --> 00:21:30.906
we only do three new things.

00:21:31.906 --> 00:21:32.864
That's it,

00:21:32.864 --> 00:21:35.572
because they take ...

00:21:35.572 --> 00:21:38.076
We call them big brand moments

00:21:38.076 --> 00:21:40.405
whether it was launching burberry.com.

00:21:40.405 --> 00:21:44.032
I mean it took us a year to
unite thousands of people

00:21:44.032 --> 00:21:45.082
around the world.

00:21:45.082 --> 00:21:47.585
We said that we had to do this

00:21:47.585 --> 00:21:50.744
and we had one chance to
change 150 years of perception.

00:21:50.744 --> 00:21:57.384
We knew that and this year
they'll be pretty close

00:21:57.384 --> 00:21:59.840
to 100 million people
that go into burberry.com

00:21:59.840 --> 00:22:01.972
and you guys we're up to, a lot

00:22:01.972 --> 00:22:03.380
but for a luxury brand that's a lot.

00:22:03.380 --> 00:22:04.388
Sal: Well that's pretty good.

00:22:04.388 --> 00:22:06.917
Angela: It's a lot and not all buying

00:22:06.917 --> 00:22:09.005
but engaging and spreading

00:22:09.005 --> 00:22:10.642
what the brand's about, etcetera.

00:22:10.642 --> 00:22:12.936
Three things a year

00:22:12.936 --> 00:22:15.759
and we still hold on to that

00:22:15.759 --> 00:22:17.136
no matter how big we are.

00:22:17.136 --> 00:22:18.443
Sal: That's not individual products,

00:22:18.443 --> 00:22:20.945
that is new initiatives like burberry.com.

00:22:20.945 --> 00:22:23.832
Angela: Exactly three big brand things

00:22:23.832 --> 00:22:27.217
that we unite 10,000 people
around the world to do.

00:22:27.217 --> 00:22:30.068
Sal: Right, and what's next in the queue?

00:22:30.068 --> 00:22:32.248
What are the three
things you are doing now?

00:22:33.509 --> 00:22:35.662
Angela: It's probably no surprise

00:22:35.662 --> 00:22:37.801
that we are aggressively
working on our ...

00:22:37.801 --> 00:22:39.682
Continuing to work on our digital platform

00:22:39.682 --> 00:22:41.311
and specifically when it comes to mobile.

00:22:41.311 --> 00:22:43.193
I mean the whole world is becoming mobile

00:22:43.193 --> 00:22:47.087
and it's crazy all the
metrics of the consumers

00:22:47.087 --> 00:22:48.176
that are engaging

00:22:48.176 --> 00:22:50.617
and that's probably a
challenge to you guys too.

00:22:50.617 --> 00:22:52.675
Because that is where you'll get your kid,

00:22:52.675 --> 00:22:55.466
that is where, on the mobile device.

00:22:55.466 --> 00:22:57.327
Not just a phone but any mobile device,

00:22:57.327 --> 00:22:58.722
I mean the whole world ...

00:22:58.722 --> 00:23:01.036
It's just so heavy investment,

00:23:01.036 --> 00:23:03.881
lot of focus going there,
so digital mobile etcetera.

00:23:05.634 --> 00:23:10.421
We always have operational or
internal initiatives as well.

00:23:10.421 --> 00:23:14.163
We do as we get big, areas get sloppy

00:23:14.163 --> 00:23:16.227
so we still have to drive
a lot of efficiencies

00:23:16.227 --> 00:23:17.214
out of the business.

00:23:17.214 --> 00:23:19.762
We call it commercial
procurement we're building,

00:23:19.762 --> 00:23:21.462
we build tons of stores a year

00:23:21.462 --> 00:23:23.128
so we've hired some additional expertise

00:23:23.128 --> 00:23:25.504
to make sure we're doing that
in the most efficient way in.

00:23:25.504 --> 00:23:28.343
I mean right now if you
ask any of our executives

00:23:28.343 --> 00:23:28.965
around the world,

00:23:28.965 --> 00:23:30.424
they know those are the three things

00:23:30.424 --> 00:23:31.614
that we're focused on this year.

00:23:31.614 --> 00:23:35.313
If we do those right, we
will put up the results

00:23:35.313 --> 00:23:37.791
that we budgeted, etcetera.

00:23:37.791 --> 00:23:39.187
Sal: Wow and you're all growing fast.

00:23:39.187 --> 00:23:40.168
I mean for a large company,

00:23:40.168 --> 00:23:42.388
you all grew 24, 25% last year?

00:23:42.388 --> 00:23:43.893
Angela: Yeah.
Sal: That's fairly dramatic.

00:23:43.893 --> 00:23:45.614
Angela: We just put up
this year's results.

00:23:45.614 --> 00:23:47.452
We just did our trading
update a couple weeks ago

00:23:47.452 --> 00:23:49.804
and our retail business was up 13%

00:23:49.804 --> 00:23:53.138
on a really, really big base and …

00:23:53.138 --> 00:23:54.717
Sal: That's not what global
retail is doing today?

00:23:54.717 --> 00:23:56.536
Angela: No, no, our largest competitor

00:23:56.536 --> 00:23:58.849
put up a 3% retail business

00:23:58.849 --> 00:24:00.430
and they're the biggest in the sector.

00:24:00.430 --> 00:24:03.912
Now we're absolutely
continuing to out perform

00:24:03.912 --> 00:24:06.434
but I will tell you
because it's the people.

00:24:06.434 --> 00:24:09.428
Because there are 10,000
people around the world

00:24:09.428 --> 00:24:12.051
that are so passionate about this company

00:24:12.051 --> 00:24:15.045
and so passionate about our performance

00:24:15.045 --> 00:24:16.881
and creating again a great brand,

00:24:16.881 --> 00:24:17.970
a really great company

00:24:17.970 --> 00:24:21.407
but they also know that every time

00:24:21.407 --> 00:24:23.169
we open a flagship store ...

00:24:23.169 --> 00:24:26.831
Because again it's shallow
luxury retail, right?

00:24:26.831 --> 00:24:29.369
That always bothered Christopher and I

00:24:29.369 --> 00:24:31.529
because it's not where
we came from, right?

00:24:31.529 --> 00:24:32.710
We love what we're doing

00:24:32.710 --> 00:24:34.282
and that's what we've been focus on,

00:24:34.282 --> 00:24:34.976
a great company.

00:24:34.976 --> 00:24:36.749
Every time we open a flagship store,

00:24:36.749 --> 00:24:39.707
we partner with a local institution.

00:24:39.707 --> 00:24:42.553
In Chicago we partnered with [Hype]

00:24:42.553 --> 00:24:44.648
and we gifted them a million dollars.

00:24:44.648 --> 00:24:47.681
We created a program to help the youth

00:24:47.681 --> 00:24:49.032
in the Chicago area

00:24:49.032 --> 00:24:51.071
with our programs
Burberry Beyond, etcetera.

00:24:51.071 --> 00:24:53.520
We've done it in New York,
we've done it in Beijing,

00:24:53.520 --> 00:24:55.132
we're getting ready to do it in Shanghai.

00:24:55.132 --> 00:24:58.064
Anytime we open up this huge luxury store

00:24:58.064 --> 00:25:01.780
which could come across a
little, elitist if you will,

00:25:01.780 --> 00:25:04.912
we always make sure that the company also,

00:25:04.912 --> 00:25:07.171
like in New York we said

00:25:07.171 --> 00:25:08.601
we're lighting up Manhattan with a store.

00:25:08.601 --> 00:25:10.546
Well we're also going to
light up people's lives

00:25:10.546 --> 00:25:11.752
when we gave the million dollars

00:25:11.752 --> 00:25:13.154
to the Robin Hood Foundation

00:25:13.154 --> 00:25:14.369
and put our program in place

00:25:14.369 --> 00:25:15.755
for the chartered schools, etcetera.

00:25:15.755 --> 00:25:17.844
That's a big part of the balance

00:25:17.844 --> 00:25:19.443
and that's a part of
being a great company.

00:25:19.443 --> 00:25:20.980
Sal: When you look at the organization,

00:25:20.980 --> 00:25:22.258
you must be looking at people

00:25:22.258 --> 00:25:23.890
"Oh, look at him, look at her."

00:25:23.890 --> 00:25:27.271
"She's got some potential,
he's got some potential."

00:25:27.271 --> 00:25:30.772
"Hey, that could be the next CEO."

00:25:30.772 --> 00:25:32.473
What are you looking at?

00:25:32.473 --> 00:25:34.306
What are the traits that
you're seeing in those people

00:25:34.306 --> 00:25:36.222
that are really striking you

00:25:36.222 --> 00:25:38.325
as someone who might be able to one day

00:25:38.325 --> 00:25:39.433
step into your shoes?

00:25:40.170 --> 00:25:41.924
Angela: It's a great question.

00:25:41.924 --> 00:25:44.743
We look at it honestly in
all levels of the company

00:25:48.973 --> 00:25:52.494
and I would even say probably
less my shoes, right?

00:25:52.494 --> 00:25:54.980
Because that would mostly be

00:25:54.980 --> 00:25:56.258
a lot of my [direct report], etcetera

00:25:56.258 --> 00:25:58.261
so I would tell you at
every level of the company

00:25:58.261 --> 00:26:01.018
and we hire for it as well.

00:26:03.156 --> 00:26:05.914
It sounds terrible but
we culturally compatible.

00:26:05.914 --> 00:26:08.269
We always say we don't
want tissue rejection

00:26:08.269 --> 00:26:10.924
because it's tough to bring
people into your culture.

00:26:10.924 --> 00:26:13.714
Sal: Tissue rejection
like skin grafting or ...

00:26:13.714 --> 00:26:14.660
Angela: Yeah.
Sal: Yes, yes

00:26:14.660 --> 00:26:17.146
Angela: We just don't want that.

00:26:17.146 --> 00:26:18.700
People go to such rigor

00:26:18.700 --> 00:26:20.033
before we bring them into the company.

00:26:20.033 --> 00:26:21.819
We always said, "Are they
culturally compatible?"

00:26:21.819 --> 00:26:23.209
"Do we trust them?"

00:26:23.209 --> 00:26:26.740
Do we like them obviously
but do we trust them?

00:26:26.740 --> 00:26:27.990
Do we believe them?

00:26:27.990 --> 00:26:30.572
Do they believe in our mission,

00:26:30.572 --> 00:26:31.923
in what we're doing?

00:26:31.923 --> 00:26:34.358
Because we can't afford to make a mistake.

00:26:34.358 --> 00:26:38.805
I would tell you with anybody
going to the next level,

00:26:38.805 --> 00:26:43.791
there is transparency,
trust, our core values,

00:26:43.791 --> 00:26:45.771
all those soft things we talked about.

00:26:45.771 --> 00:26:48.822
When they reach a certain
level it's a given their smart.

00:26:48.822 --> 00:26:51.457
It's a given they have high IQ

00:26:51.457 --> 00:26:53.538
but we need high EQ.

00:26:53.538 --> 00:26:56.743
I always say that everybody in the company

00:26:56.743 --> 00:27:00.357
needs a little right
and left brain, right?

00:27:00.357 --> 00:27:03.508
Two extremes because then they don't feel.

00:27:03.508 --> 00:27:07.620
We always say that we
can teach people anything

00:27:07.620 --> 00:27:10.246
but we can't teach them to care,

00:27:10.246 --> 00:27:11.751
we can't teach them to feel

00:27:11.751 --> 00:27:13.323
and when you're in a human business

00:27:13.323 --> 00:27:15.304
and you're communicating
like we're communicating,

00:27:15.304 --> 00:27:17.552
they have to be authentic.

00:27:18.921 --> 00:27:20.696
We have a leadership council

00:27:20.696 --> 00:27:22.326
which is the next generation talent.

00:27:22.326 --> 00:27:25.704
We spend hours just
helping them understand

00:27:25.704 --> 00:27:26.499
who they are.

00:27:26.499 --> 00:27:28.488
Who are they, right?

00:27:28.488 --> 00:27:31.160
Because then only if they
really know who they are,

00:27:31.160 --> 00:27:34.069
can they build very
balance teams around them

00:27:34.069 --> 00:27:36.794
and it's a real self-reflective phase

00:27:36.794 --> 00:27:38.028
that they go through

00:27:38.028 --> 00:27:40.349
but they will become better leaders

00:27:40.349 --> 00:27:42.969
having peace and confidence
with who they are

00:27:42.969 --> 00:27:45.432
and to thy self be true.

00:27:45.432 --> 00:27:48.566
That is a part of our talent plan.

00:27:48.566 --> 00:27:52.137
I always say no different than me.

00:27:52.137 --> 00:27:54.846
I tell investors you would be so surprised

00:27:54.846 --> 00:27:56.845
at every decision I don't make everyday.

00:27:56.845 --> 00:27:58.330
(Sal laughs)

00:27:58.330 --> 00:27:59.316
But you can't.

00:27:59.316 --> 00:28:02.351
I have to try trust the
people we brought in

00:28:02.351 --> 00:28:05.819
and I have to give them
very simple clear messages.

00:28:05.819 --> 00:28:08.777
The three things we're
going to do this year

00:28:08.777 --> 00:28:10.784
and all the metrics behind it

00:28:10.784 --> 00:28:12.917
and uniting everyone

00:28:12.917 --> 00:28:19.693
but it is trust, intuition,
great communication,

00:28:19.693 --> 00:28:22.472
authenticity, people have to feel them

00:28:22.472 --> 00:28:25.542
or they will never rise as
a leader in the company.

00:28:25.542 --> 00:28:26.585
Sal: Right.

00:28:26.585 --> 00:28:28.528
I mean is it something
that you think you can ...

00:28:28.528 --> 00:28:31.027
I mean you talk about
personality fit and cultural fit,

00:28:31.027 --> 00:28:31.882
do you trust them,

00:28:31.882 --> 00:28:34.509
but is there some way that
you can screen for that?

00:28:34.509 --> 00:28:37.384
For that balance of the whole brain.

00:28:37.384 --> 00:28:38.572
I read the whole book now.

00:28:38.572 --> 00:28:40.496
Angela: Fascinating.
Sal: Very good book.

00:28:41.634 --> 00:28:43.505
Angela: Did you really read it?

00:28:43.505 --> 00:28:45.169
Sal: I did, I read it on
plane, it's a long flight.

00:28:46.276 --> 00:28:48.441
Angela: I gave him a copy
of Daniel Pink's book.

00:28:48.441 --> 00:28:50.072
It's called the Whole Mind,

00:28:50.072 --> 00:28:52.768
Why Right-Brainers Will Rule the World?

00:28:53.844 --> 00:28:56.529
Sal: One thing that I pointed out to you

00:28:56.529 --> 00:28:58.697
because one thing that I
did react to that book.

00:28:58.697 --> 00:29:00.622
It's funny because in that book it says,

00:29:00.622 --> 00:29:02.153
"Oh, we don't need programmers anymore,"

00:29:02.153 --> 00:29:03.420
"we need inventors."

00:29:03.420 --> 00:29:05.503
I said, "What's a programmer?
It's an inventor."

00:29:05.503 --> 00:29:07.272
It is a fundamentally a
right-brained activity.

00:29:07.272 --> 00:29:09.809
I actually most strong ...

00:29:09.809 --> 00:29:11.617
When people say, "Khan Academy stem ..."

00:29:11.617 --> 00:29:15.022
I was like stem is, it should
be a right-brained activity.

00:29:15.022 --> 00:29:20.312
I mean in my mind the learning
to factor a polynomial

00:29:20.312 --> 00:29:23.790
or to do the basics of algorithm,

00:29:23.790 --> 00:29:25.879
that's like a painter
learning how to paint.

00:29:25.879 --> 00:29:28.921
The real expression is when
you actually create something

00:29:28.921 --> 00:29:31.077
so I actually think we're more similar

00:29:31.077 --> 00:29:32.910
Angela: I think so too

00:29:32.910 --> 00:29:34.630
but I think that's what you've unlocked.

00:29:34.630 --> 00:29:36.834
I think that's your
unique brand positioning.

00:29:36.834 --> 00:29:39.293
Sal: Right, the creative …

00:29:39.293 --> 00:29:42.108
Angela: You're taking what
most people would take

00:29:42.108 --> 00:29:43.429
as a traditional left-brain

00:29:43.429 --> 00:29:45.876
and you're adding fun to it,

00:29:45.876 --> 00:29:47.290
you're adding energy to it.

00:29:47.290 --> 00:29:50.312
You're making it, you're combining,

00:29:50.312 --> 00:29:53.294
you're making it more of a
right, left brain exercise

00:29:53.294 --> 00:29:55.847
not just an analytical exercise.

00:29:55.847 --> 00:29:59.832
Sal: Yeah, no and how
are we doing on time now?

00:29:59.832 --> 00:30:02.427
Voiceover: I think we only
have, like three more minutes.

00:30:02.427 --> 00:30:03.684
Sal: Okay, three more minutes.

00:30:03.684 --> 00:30:05.562
I will ask you again
because it was so inspiring

00:30:05.562 --> 00:30:06.786
in the Dopamine, just start,

00:30:06.786 --> 00:30:07.846
we're talking about Dopamine earlier

00:30:07.846 --> 00:30:09.150
and you got us all very excited.

00:30:09.150 --> 00:30:11.318
Angela: (laughs) I won't ask.

00:30:11.318 --> 00:30:14.396
Sal: Yeah, we were talking
about, well and other things.

00:30:15.857 --> 00:30:18.894
I mean, just parting words,
advice for the team here

00:30:18.894 --> 00:30:21.870
and people look good greater
Khan Academy community.

00:30:21.870 --> 00:30:25.148
Thoughts on just what we should be doing

00:30:25.148 --> 00:30:27.193
and how we should approach life.

00:30:27.193 --> 00:30:29.898
Angela: Yeah, you are …

00:30:29.898 --> 00:30:31.428
It's funny because I had the honor

00:30:31.428 --> 00:30:32.941
right before the Olympics.

00:30:32.941 --> 00:30:35.264
Mr. Bill Gates was in London

00:30:35.264 --> 00:30:36.666
and had a wonderful luncheon.

00:30:36.666 --> 00:30:38.476
We'd met a couple of different times

00:30:38.476 --> 00:30:39.914
and I had the honor of sitting next to him

00:30:39.914 --> 00:30:40.882
at the luncheon table.

00:30:40.882 --> 00:30:42.716
He was talking about all of his

00:30:42.716 --> 00:30:44.098
different philanthropic efforts etcetera

00:30:44.098 --> 00:30:47.705
and to the who's who
of the UK if you will.

00:30:47.705 --> 00:30:50.002
He had mentioned the Khan Academy

00:30:50.002 --> 00:30:52.970
and I was so excited, why ...

00:30:52.970 --> 00:30:55.918
At the very end he simply
said, "Is there anything else?"

00:30:55.918 --> 00:30:58.120
I said, "Well what are you
plans for the Khan Academy?”

00:30:58.120 --> 00:31:01.538
He looked at me like how
did I know about this

00:31:01.538 --> 00:31:03.843
and nobody in the room knew about it

00:31:03.843 --> 00:31:06.749
and these are huge big
executives running Glaxo

00:31:06.749 --> 00:31:08.361
and every big company in the UK.

00:31:09.637 --> 00:31:11.682
He then went on to share with them

00:31:11.682 --> 00:31:12.750
what you were doing

00:31:12.750 --> 00:31:14.930
and why that he felt strongly

00:31:14.930 --> 00:31:17.790
and his foundation was
investing, etcetera.

00:31:17.790 --> 00:31:21.838
Then the luncheon broke
and then he looked at me

00:31:21.838 --> 00:31:23.295
and he goes, "What would you do?"

00:31:23.295 --> 00:31:27.318
I said, "You created"

00:31:27.318 --> 00:31:30.396
"the greatest brand in
the world, Microsoft."

00:31:30.396 --> 00:31:35.198
"You were so laser and
you had such a vision.”

00:31:35.198 --> 00:31:36.638
I said, "It is absolutely"

00:31:36.638 --> 00:31:38.375
"no different with the Khan Academy."

00:31:38.375 --> 00:31:41.085
"I believe you have the ability to create"

00:31:41.085 --> 00:31:42.678
"one of the greatest brands"

00:31:42.678 --> 00:31:45.237
"and one of the greatest
companies in the world."

00:31:45.237 --> 00:31:48.885
I told him, I said, "When
you did it, there was a need"

00:31:48.885 --> 00:31:50.631
"and you filled that need."

00:31:50.631 --> 00:31:54.442
There is a tremendous need
and you are filling that need

00:31:54.442 --> 00:31:56.044
and it's in a different way

00:31:56.044 --> 00:31:58.337
but you're using and you're
leveraging the technology

00:31:58.337 --> 00:32:00.553
that exist today, as he did.

00:32:00.553 --> 00:32:05.098
He then sent a follow up
note afterwards saying,

00:32:05.098 --> 00:32:06.591
"Could we continue the conversation,"

00:32:06.591 --> 00:32:09.222
"I found it fascinating, etcetera."

00:32:09.222 --> 00:32:11.152
I shared this with you

00:32:11.152 --> 00:32:15.297
because at this young age that you are,

00:32:15.297 --> 00:32:17.957
to have someone of his
vision and his caliber

00:32:17.957 --> 00:32:22.585
believe in you, you know
you're on the right track.

00:32:22.585 --> 00:32:26.941
I just think that I am absolutely nothing

00:32:26.941 --> 00:32:29.227
in comparison to the people
that are watching you,

00:32:29.227 --> 00:32:30.852
the people that are following you,

00:32:30.852 --> 00:32:34.417
the lives that you're impacting.

00:32:34.417 --> 00:32:36.433
You're impacting teachers lives,

00:32:36.433 --> 00:32:38.459
you're impacting the next generation.

00:32:38.459 --> 00:32:40.429
You are actually impacting people

00:32:40.429 --> 00:32:41.839
who didn't finish their education.

00:32:41.839 --> 00:32:44.901
Who are going on and learning now.

00:32:45.401 --> 00:32:48.787
You will create a phenomenal brand,

00:32:48.787 --> 00:32:51.038
you will create an amazing company

00:32:51.038 --> 00:32:54.942
and you are in the mist
of disrupting a sector

00:32:54.942 --> 00:32:58.703
that is so desperately
in need of being fixed.

00:32:58.703 --> 00:33:01.205
You're doing it in such a modern way,

00:33:01.205 --> 00:33:03.440
leveraging everything that exist today

00:33:03.440 --> 00:33:06.525
and my counsel to you is just don't stop

00:33:06.525 --> 00:33:08.120
and don't slow down.

00:33:08.120 --> 00:33:11.612
Stay focused, keep the right pace

00:33:11.612 --> 00:33:15.434
but do truly understand
that what you're doing

00:33:15.434 --> 00:33:16.955
has far greater meaning

00:33:16.955 --> 00:33:19.031
than anything you've ever
done in your lives before.

00:33:19.031 --> 00:33:21.922
Not just that America need you to do this,

00:33:21.922 --> 00:33:23.337
the world needs you to do this.

00:33:23.337 --> 00:33:26.063
Education is the biggest issue

00:33:26.063 --> 00:33:31.235
that inhibiting future
economies all over the world.

00:33:32.265 --> 00:33:35.690
I am so honored to be
here to chat with you

00:33:35.690 --> 00:33:39.786
and just I am so thankful
for what you're doing,

00:33:39.786 --> 00:33:41.332
I really am.

00:33:41.332 --> 00:33:43.968
Sal: Well I feel like
going back to work now.

00:33:43.968 --> 00:33:47.019
(people laughing)

00:33:47.019 --> 00:33:48.494
No, thank you so much.

00:33:48.494 --> 00:33:51.032
I mean this was, I mean for me personally

00:33:51.032 --> 00:33:53.426
when we met in Heathrow
with my $6 shirt on,

00:33:53.426 --> 00:33:56.098
that by itself was a really powerful.

00:33:56.098 --> 00:33:57.798
I mean Esther was there
too and we were like

00:33:57.798 --> 00:33:58.652
“She’s amazing!”

00:33:58.652 --> 00:34:00.650
Esther is the number search resultant

00:34:00.650 --> 00:34:02.209
Olympic attitude on Google.

00:34:02.209 --> 00:34:03.514
(people laughing)

00:34:03.514 --> 00:34:06.303
She has authority here
but we were transfixed

00:34:06.303 --> 00:34:07.977
and blown away by meeting you then

00:34:07.977 --> 00:34:09.901
and this I think I
could speak for everyone

00:34:09.901 --> 00:34:12.063
where this was incredibly
inspiring and motivating

00:34:12.063 --> 00:34:13.730
for all of us so thank you so much.

00:34:13.730 --> 00:34:15.022
Angela: No, you are more than welcome.

00:34:15.022 --> 00:34:16.049
Keep up the great work.

00:34:16.049 --> 00:34:20.049
(clapping)


Finding absolute extrema on a closed interval

WEBVTT
Kind: captions
Language: en

00:00:00.303 --> 00:00:02.341
Let's say that we've got the function

00:00:02.341 --> 00:00:06.302
f of x is equal to eight times the
natural log of x minus x squared

00:00:06.302 --> 00:00:09.400
and it is defined over the closed
interval between one and four,

00:00:09.400 --> 00:00:10.500
so it's a closed interval.

00:00:10.500 --> 00:00:13.431
it also includes one and it includes four.

00:00:13.431 --> 00:00:16.006
You can view this as the
domain of our function

00:00:16.006 --> 00:00:17.806
as we have defined it.

00:00:17.806 --> 00:00:20.998
So given this, given this
information, this function definition,

00:00:20.998 --> 00:00:23.465
what I would like you
to do is come up with

00:00:23.465 --> 00:00:33.650
the absolute, absolute
maximum value, value of f,

00:00:33.650 --> 00:00:37.922
of f as defined where f is
defined right over here,

00:00:37.922 --> 00:00:40.173
where f is defined on
this closed interval.

00:00:40.173 --> 00:00:42.283
And I encourage you to pause this video

00:00:42.283 --> 00:00:45.200
and think about it on your own.

00:00:45.200 --> 00:00:47.965
So the extreme value theorem tells us,

00:00:47.965 --> 00:00:50.528
look, we've got some closed
interval - I'm going to

00:00:50.528 --> 00:00:53.471
speak in generalities here -
so let's say that's our X axis

00:00:53.471 --> 00:00:55.426
and let's say we have some
function that's defined

00:00:55.426 --> 00:00:57.169
on a closed interval.

00:00:57.169 --> 00:00:58.807
We have a couple of
different scenarios for what

00:00:58.807 --> 00:01:01.851
that function might look
like on that closed interval.

00:01:01.851 --> 00:01:05.030
So, we might hit a maximum
point, we might hit a

00:01:05.030 --> 00:01:07.874
maximum point, at the
beginning of the interval,

00:01:07.874 --> 00:01:09.529
something like that.

00:01:09.529 --> 00:01:12.203
We might hit an absolute
maximum point at the end

00:01:12.203 --> 00:01:15.843
of the interval, so it might
look something like this,

00:01:15.843 --> 00:01:17.721
so that's at the end of the interval.

00:01:17.721 --> 00:01:21.979
Or, we might hit an absolute
maximum point someplace in between

00:01:21.979 --> 00:01:24.479
and that could look something like this,

00:01:24.479 --> 00:01:27.391
it could look like this,

00:01:27.391 --> 00:01:30.566
and at this maximum
point, the slope of the

00:01:30.566 --> 00:01:35.872
tangent line is zero, so
here the derivative is zero,

00:01:35.872 --> 00:01:38.403
or we could have a maximum
point someplace in between

00:01:38.403 --> 00:01:40.874
that looks like this.

00:01:40.874 --> 00:01:44.342
And if it looks like this,
then here the derivative

00:01:44.342 --> 00:01:45.488
would be undefined.

00:01:45.488 --> 00:01:47.649
There's a lot of different tangent lines

00:01:47.649 --> 00:01:52.021
that you could place, that you
could place right over there.

00:01:52.021 --> 00:01:54.309
So, what we need to do is, let's test.

00:01:54.309 --> 00:01:55.962
Let's test the different endpoints.

00:01:55.962 --> 00:01:58.005
Let's test the function at the beginning,

00:01:58.005 --> 00:02:00.259
let's test the function at
the end of the interval,

00:02:00.259 --> 00:02:01.764
and then let's see if there's any points

00:02:01.764 --> 00:02:03.749
where the derivative is either zero or

00:02:03.749 --> 00:02:06.294
the derivative is undefined.

00:02:06.294 --> 00:02:07.825
And these points where
the derivative is either

00:02:07.825 --> 00:02:10.377
zero it is undefined,
we've seen them before,

00:02:10.377 --> 00:02:12.830
we call these, of
course, critical numbers.

00:02:12.830 --> 00:02:15.028
So this would be either,
in either case actually,

00:02:15.028 --> 00:02:17.334
if we assume that that's
happening to the same number,

00:02:17.334 --> 00:02:19.851
we would call that a critical number.

00:02:19.851 --> 00:02:22.893
Critical - a critical number.

00:02:22.893 --> 00:02:24.273
So those are the different candidates.

00:02:24.273 --> 00:02:26.880
Now you could have a critical
number in between that,

00:02:26.880 --> 00:02:28.976
where, say, the slope is
zero, say something like this,

00:02:28.976 --> 00:02:30.569
but it is at the maximum or minimum.

00:02:30.569 --> 00:02:34.360
But what we can do is, if we can
find all the critical numbers,

00:02:34.360 --> 00:02:37.385
we can then test the affect,
the function of the value

00:02:37.385 --> 00:02:38.869
of the critical numbers and the function

00:02:38.869 --> 00:02:40.107
of the value at the
endpoints and we can see

00:02:40.107 --> 00:02:41.145
which of those are the largest.

00:02:41.145 --> 00:02:43.664
All of those are the
possible candidates for

00:02:43.664 --> 00:02:46.599
where f hits a maximum value.

00:02:46.599 --> 00:02:49.586
So, first we could think about
- well actually, let's just,

00:02:49.586 --> 00:02:52.962
let's find the critical numbers
first, since we have to do it.

00:02:52.962 --> 00:02:54.201
So, let's take the derivative of f.

00:02:54.201 --> 00:02:56.487
f prime of x is going to be equal to the

00:02:56.487 --> 00:02:58.961
derivative of the natural
log of x is one over x.

00:02:58.961 --> 00:03:02.057
so it's going to be eight over x minus 2x

00:03:02.057 --> 00:03:04.427
and let's set that equal to zero.

00:03:04.427 --> 00:03:08.388
So if we focus on this part
right over here, we could add

00:03:08.388 --> 00:03:12.732
2x to both sides and we would
get eight over x is equal to 2x.

00:03:12.732 --> 00:03:15.420
Multiply both sides by x,

00:03:15.420 --> 00:03:18.765
we get eight is equal to 2x squared.

00:03:18.765 --> 00:03:23.096
Divide both sides by two, you
get four is equal to x squared.

00:03:23.096 --> 00:03:25.132
And if we were just purely
solving this equation,

00:03:25.132 --> 00:03:28.203
we would get x is equal
to plus or minus two.

00:03:28.203 --> 00:03:30.297
Now, we are saying that the
function is only defined

00:03:30.297 --> 00:03:33.555
over this interval, so negative
two is a part of its domain,

00:03:33.555 --> 00:03:37.023
so we are only going to
focus on x is equal to two.

00:03:37.023 --> 00:03:41.159
This right over here is
definitely a critical number.

00:03:41.159 --> 00:03:43.667
Now, have we found all
of the critical numbers?

00:03:43.667 --> 00:03:44.370
Critical numbers.

00:03:44.370 --> 00:03:46.765
Well, this is the only number
other than negative two,

00:03:46.765 --> 00:03:48.434
the only number in the
interval that will make

00:03:48.434 --> 00:03:50.980
f prime of x equal to zero.

00:03:50.980 --> 00:03:52.892
What about where it's undefined?

00:03:52.892 --> 00:03:55.110
Well, f prime of x would be
undefined, the only place where

00:03:55.110 --> 00:03:57.723
it would be undefined is if you
stuck a zero right over here

00:03:57.723 --> 00:04:01.426
in the denominator, but zero is
not in the interval, so the only

00:04:01.426 --> 00:04:04.274
critical number in the
interval is x equals two.

00:04:04.274 --> 00:04:07.601
So, now we just have to test f
at the different endpoints and

00:04:07.601 --> 00:04:09.952
at the critical number and see
which of those is the highest.

00:04:09.952 --> 00:04:13.242
So, we're going to test
f of one, f of one,

00:04:13.242 --> 00:04:16.324
which is equal to eight
times the natural log of one

00:04:16.324 --> 00:04:18.269
minus one squared.

00:04:18.269 --> 00:04:21.851
We'll test f of four,
which is equal to eight

00:04:21.851 --> 00:04:25.868
times the natural log of
four minus four squared,

00:04:25.868 --> 00:04:29.111
which is, of course, 16, which is 16.

00:04:29.111 --> 00:04:31.226
And we're going to test f of 2.

00:04:31.226 --> 00:04:33.412
So these are the endpoints
and this is a critical number.

00:04:33.412 --> 00:04:40.164
Eight times the natural log
of two minus two squared.

00:04:40.164 --> 00:04:43.309
Now, which of these is
going to be the largest?

00:04:43.309 --> 00:04:44.573
And it might be tempting
to get a calculator out,

00:04:44.573 --> 00:04:46.739
but actually let's see if we
can get a little intuition here.

00:04:46.739 --> 00:04:51.947
So this is, the natural log of
one is zero, e to the zero power

00:04:51.947 --> 00:04:53.378
is equal to one.

00:04:53.378 --> 00:04:57.705
So eight times zero is zero, so
this evaluates to negative one.

00:04:57.705 --> 00:04:59.534
Now, let's see, what
does this evaluate to?

00:04:59.534 --> 00:05:05.786
The natural log of four, e is two
point seven, on and on and on,

00:05:05.786 --> 00:05:09.999
so this number is going
to be between one and two

00:05:09.999 --> 00:05:13.395
so it's going to be between one and two,

00:05:13.395 --> 00:05:15.506
and it's actually going to
be, well, between one and two,

00:05:15.506 --> 00:05:17.217
you multiply that times
eight and you're going

00:05:17.217 --> 00:05:19.555
to be between eight and 16,

00:05:19.555 --> 00:05:23.499
and then you subtract
16, so that means you're

00:05:23.499 --> 00:05:27.683
going to be between
zero and negative eight.

00:05:27.683 --> 00:05:30.604
So, okay, so that, it's not
clear, at least not without using

00:05:30.604 --> 00:05:33.254
a calculator, or this very rough
way, which of these is larger.

00:05:33.254 --> 00:05:35.427
Both of these are
negative numbers, though.

00:05:35.427 --> 00:05:36.666
Now, what about this?

00:05:36.666 --> 00:05:38.003
The natural log of two.

00:05:38.003 --> 00:05:40.621
The natural log of two is
going to be some fraction.

00:05:40.621 --> 00:05:45.860
It's going to be more than half,
it's going to be more than half,

00:05:45.860 --> 00:05:47.493
And since it's more than
half, this whole thing

00:05:47.493 --> 00:05:48.984
is going to be more than four, which means

00:05:48.984 --> 00:05:51.635
this whole thing is going to be positive.

00:05:51.635 --> 00:05:54.502
So this is negative, this is
negative, this is positive.

00:05:54.502 --> 00:05:56.380
And these are only critical
numbers, these are only

00:05:56.380 --> 00:05:58.513
candidates for our maximum value,

00:05:58.513 --> 00:05:59.613
so I would go with this one.

00:05:59.613 --> 00:06:02.200
Our maximum, our maximum value happens

00:06:02.200 --> 00:06:05.613
when x is equal to two,
and that maximum value is

00:06:05.613 --> 00:06:09.228
eight natural log of two minus four.

00:06:09.228 --> 00:06:14.930
That is the absolute maximum
value, absolute max value

00:06:14.930 --> 00:06:16.773
over the interval, or I guess we could say

00:06:16.773 --> 00:06:19.218
over the domain that this
function has defined.

00:06:19.218 --> 00:06:23.016
If we want to verify it with a
calculator we, of course, could.

00:06:23.016 --> 00:06:26.000
So, we already figured out this
one, but let's see, f of four,

00:06:26.000 --> 00:06:34.377
eight natural log of four minus
16 is equal to negative five.

00:06:34.377 --> 00:06:37.903
So that's, that's, this is definitely not,

00:06:37.903 --> 00:06:40.639
this one is definitely
not the maximum value.

00:06:40.639 --> 00:06:46.863
And then f of two is eight
natural log of two minus four

00:06:46.863 --> 00:06:51.115
which, as we said, is
indeed a positive number.

00:06:51.115 --> 00:06:54.940
So feel pretty good about what we did.


Finding critical points

WEBVTT
Kind: captions
Language: en

00:00:00.625 --> 00:00:08.054
Let's say that f of x is equal
to x times e to the negative

00:00:08.054 --> 00:00:14.470
two x squared, and we want to
find any critical numbers for f.

00:00:14.830 --> 00:00:17.031
I encourage you to pause
this video and think about,

00:00:17.031 --> 00:00:20.585
can you find any critical numbers of f.

00:00:21.545 --> 00:00:23.085
I'm assuming you've given a go at it.

00:00:23.085 --> 00:00:25.797
Let's just remind ourselves
what a critical number is.

00:00:26.406 --> 00:00:30.454
We would say c is a critical

00:00:30.454 --> 00:00:38.637
number of f, if and only if.

00:00:39.924 --> 00:00:44.203
I'll write if with two f's,
short for if and only if,

00:00:44.690 --> 00:00:53.610
f prime of c is equal to zero
or f prime of c is undefined.

00:00:55.695 --> 00:00:58.918
If we look for the critical
numbers for f we want to figure

00:00:59.119 --> 00:01:01.510
out all the places where
the derivative of this with

00:01:01.510 --> 00:01:06.023
respect to x is either equal
to zero or it is undefined.

00:01:06.515 --> 00:01:09.405
Let's think about how we can
find the derivative of this.

00:01:10.532 --> 00:01:15.924
f prime of x is going
to be, well let's see.

00:01:16.174 --> 00:01:17.424
We're going to have to
apply some combination

00:01:17.424 --> 00:01:19.285
of the product rule and the chain rule.

00:01:19.285 --> 00:01:26.710
It's going to be the derivative
with respect to x of x,

00:01:28.436 --> 00:01:29.560
so it's going to be that,

00:01:29.813 --> 00:01:38.593
times e to the negative two
x squared plus the derivative

00:01:38.593 --> 00:01:44.515
with respect to x of e to
the negative two x squared

00:01:50.162 --> 00:01:57.078
times x. This is just the
product rule right over here.

00:01:57.078 --> 00:02:00.390
Derivative of the x times e to the

00:02:00.390 --> 00:02:02.487
negative of two x squared plus
the derivative of e to the

00:02:02.487 --> 00:02:05.499
negative two x squared
times x, right over here.

00:02:05.890 --> 00:02:07.064
What is this going to be?

00:02:07.454 --> 00:02:09.843
Well all of this stuff in magenta,

00:02:09.843 --> 00:02:12.172
the derivative of x with respect to x,

00:02:12.172 --> 00:02:14.063
that's just going to be equal to one.

00:02:14.268 --> 00:02:16.328
This first part is going to be equal

00:02:16.328 --> 00:02:20.489
to e to the negative two x squared.

00:02:20.827 --> 00:02:23.020
Now the derivative of e to the

00:02:23.020 --> 00:02:24.937
negative two x squared over here.

00:02:25.315 --> 00:02:26.484
I'll do this in this pink color.

00:02:26.484 --> 00:02:30.827
This part right over here,
that is going to be equal to-

00:02:30.827 --> 00:02:32.329
We'll just apply the chain rule.

00:02:32.329 --> 00:02:34.813
Derivative of e to the
negative two x squared with

00:02:34.813 --> 00:02:37.671
respect to negative two
x squared, well that's

00:02:37.671 --> 00:02:41.125
just going to be e to the
negative two x squared.

00:02:41.596 --> 00:02:42.789
We're going to multiply that times the

00:02:42.789 --> 00:02:46.662
derivative of negative two
x squared with respect to x.

00:02:47.889 --> 00:02:52.097
That's going to be what, negative four x.

00:02:52.687 --> 00:02:56.568
Times negative four x, and of

00:02:56.568 --> 00:02:58.379
course we have this x over here.

00:02:58.748 --> 00:03:02.020
We have that x over there and let's see,

00:03:02.020 --> 00:03:06.031
can we simplify it at all?

00:03:06.673 --> 00:03:08.544
Well obviously both of these terms have

00:03:08.764 --> 00:03:10.154
an e to the negative two x squared.

00:03:10.154 --> 00:03:11.435
I'm going to try to
figure out where this is

00:03:11.435 --> 00:03:16.176
either undefined or where
this is equal to zero.

00:03:16.596 --> 00:03:19.017
Let's think about this a little bit.

00:03:20.745 --> 00:03:23.166
If we factor out e to the
negative two x squared,

00:03:23.455 --> 00:03:24.426
I'll do that in green.

00:03:24.846 --> 00:03:26.136
We're going to have,

00:03:26.346 --> 00:03:30.457
this is equal to e to the
negative two x squared times,

00:03:31.097 --> 00:03:38.377
we have here, one minus four x squared.

00:03:38.674 --> 00:03:44.831
One minus four x squared.

00:03:45.643 --> 00:03:47.346
This is the derivative of f.

00:03:48.505 --> 00:03:53.458
Where would this be
undefined or equal to zero?

00:03:55.423 --> 00:03:57.716
e to the negative two x squared,

00:03:57.964 --> 00:04:02.402
this is going to be
defined for any value of x,

00:04:02.747 --> 00:04:04.308
this part is going to be defined,

00:04:04.511 --> 00:04:07.796
and this part is also going to
be defined for any value of x.

00:04:08.625 --> 00:04:10.326
There's no point where this is undefined.

00:04:10.326 --> 00:04:12.518
Let's think about when this
is going to be equal to zero.

00:04:13.045 --> 00:04:15.904
The product of these two
expressions equalling zero,

00:04:16.233 --> 00:04:17.969
e to the negative two x squared,

00:04:17.969 --> 00:04:20.019
that will never be equal to zero.

00:04:20.019 --> 00:04:21.624
If you get this exponent to be a really,

00:04:21.624 --> 00:04:23.780
I guess you could say
very negative number,

00:04:23.780 --> 00:04:29.046
you will approach zero but you
will never get it to be zero.

00:04:29.046 --> 00:04:30.829
This part here can't be zero.

00:04:31.049 --> 00:04:33.499
If the product of two
things are zero at least

00:04:33.499 --> 00:04:35.780
one of them has to be
zero, so the only way

00:04:35.780 --> 00:04:39.378
we can get f prime of x
to be equal to zero is

00:04:39.378 --> 00:04:44.047
when one minus four x
squared is equal to zero.

00:04:44.597 --> 00:04:46.892
One minus four x squared is equal

00:04:46.892 --> 00:04:48.473
to zero, let me rewrite that.

00:04:48.473 --> 00:04:50.874
One minus four x squared is equal

00:04:50.874 --> 00:04:53.484
to zero, when does that happen?

00:04:53.765 --> 00:04:55.265
This one we can just solve.

00:04:55.705 --> 00:04:57.205
Add four x squared to both sides,

00:04:57.205 --> 00:04:59.656
you get one is equal to four x squared.

00:04:59.656 --> 00:05:01.016
Divide both sides by four, you get

00:05:01.016 --> 00:05:03.987
one fourth is equal to x squared.

00:05:03.987 --> 00:05:06.318
Then what x values is this true at?

00:05:06.318 --> 00:05:09.709
We just take the plus or minus
square root of both sides

00:05:09.709 --> 00:05:15.030
and you get x is equal to
plus or minus one half.

00:05:15.300 --> 00:05:16.751
Negative one half squared is one fourth,

00:05:16.751 --> 00:05:19.612
positive one half squared is one fourth.

00:05:20.098 --> 00:05:23.989
If x equals plus or
minus one half f prime,

00:05:24.229 --> 00:05:26.003
or the derivative, is equal to zero.

00:05:26.003 --> 00:05:27.145
Let me write it this way.

00:05:27.473 --> 00:05:31.441
f prime of one half is equal to zero,

00:05:31.722 --> 00:05:33.254
and you can verify that right over here.

00:05:33.537 --> 00:05:37.351
And f prime of negative
one half is equal to zero.

00:05:37.661 --> 00:05:40.383
If someone asks what are
the critical numbers here,

00:05:45.507 --> 00:05:49.348
they are one half and negative one half.


Differentiating logarithmic functions using log properties

WEBVTT
Kind: captions
Language: en

00:00:00.455 --> 00:00:01.539
Voiceover:Let's say that

00:00:01.539 --> 00:00:03.405
we've got the function F of X

00:00:03.405 --> 00:00:06.330
and it is equal to the natural log

00:00:06.330 --> 00:00:11.552
of X plus five over X minus one.

00:00:11.552 --> 00:00:13.213
And what we want to figure out

00:00:13.213 --> 00:00:17.519
is what is F prime of X.

00:00:17.519 --> 00:00:19.711
And I encourage you to pause this video

00:00:19.711 --> 00:00:21.534
and try to figure it out on your own.

00:00:21.534 --> 00:00:24.915
So there's two ways that
you can approach this.

00:00:24.915 --> 00:00:27.357
I would call one way the easy way.

00:00:27.357 --> 00:00:29.985
And the other way, the hard way.

00:00:29.985 --> 00:00:32.267
And we'll work through both of them.

00:00:32.267 --> 00:00:34.630
The easy way is to recognize

00:00:34.630 --> 00:00:36.164
your logarithm properties,

00:00:36.164 --> 00:00:38.595
to remember that the natural log

00:00:38.595 --> 00:00:40.260
of A over B.

00:00:40.260 --> 00:00:43.553
Remember natural log is
just log base the number E.

00:00:43.553 --> 00:00:45.539
So this is just going to be equal to

00:00:45.539 --> 00:00:46.930
the natural log of A

00:00:46.930 --> 00:00:49.253
minus the natural log of B.

00:00:49.253 --> 00:00:51.149
So if we just apply this property

00:00:51.149 --> 00:00:52.031
right over here,

00:00:52.031 --> 00:00:53.237
and just simplify this expression,

00:00:53.237 --> 00:00:54.836
or at least simplify
it from a point of view

00:00:54.836 --> 00:00:56.543
in terms of having to
take this derivative.

00:00:56.543 --> 00:00:58.613
We can rewrite F of X.

00:00:58.613 --> 00:01:02.206
We can write F of X as being equal to

00:01:02.206 --> 00:01:04.819
the natural log of X plus five

00:01:04.819 --> 00:01:10.442
minus the natural log of X minus one.

00:01:10.442 --> 00:01:12.943
And when we take the derivative now

00:01:12.943 --> 00:01:14.162
with respect to X,

00:01:14.162 --> 00:01:15.307
F prime of X,

00:01:15.307 --> 00:01:16.956
well this is going to be the derivative

00:01:16.956 --> 00:01:18.545
of the natural log of X plus five

00:01:18.545 --> 00:01:20.064
with respect to X plus five,

00:01:20.064 --> 00:01:22.458
so that's going to be one over X plus five

00:01:22.458 --> 00:01:24.892
times the derivative of X plus five

00:01:24.892 --> 00:01:26.042
with respect to X.

00:01:26.042 --> 00:01:27.380
I'm just applying the chain rule here,

00:01:27.380 --> 00:01:28.975
and that's just going to be one.

00:01:28.975 --> 00:01:33.823
So this, the derivative of that is that.

00:01:33.823 --> 00:01:35.843
And the derivative of this,

00:01:35.843 --> 00:01:36.946
well, let's see,

00:01:36.946 --> 00:01:38.847
we're going to have a minus sign there

00:01:38.847 --> 00:01:40.403
and the derivative of the natural log

00:01:40.403 --> 00:01:44.736
of X minus one with respect to X minus one

00:01:44.736 --> 00:01:49.394
is going to be one over X minus one

00:01:49.394 --> 00:01:50.993
and the derivative of X minus one

00:01:50.993 --> 00:01:52.671
with the respect to X is just one

00:01:52.671 --> 00:01:53.912
you just multiply this by one,

00:01:53.912 --> 00:01:55.011
it doesn't really change the value.

00:01:55.011 --> 00:01:56.241
And we're done!

00:01:56.241 --> 00:01:58.759
We were able to figure
out the derivative of F.

00:01:58.759 --> 00:02:00.801
Now what's the hard way

00:02:00.801 --> 00:02:01.971
you might be thinking?

00:02:01.971 --> 00:02:03.043
Or maybe you did do it

00:02:03.043 --> 00:02:04.596
when you tried to approach it on your own.

00:02:04.596 --> 00:02:06.795
Well, that's not to
simplify this expression

00:02:06.795 --> 00:02:07.780
using this property

00:02:07.780 --> 00:02:09.571
and just to try and power through this

00:02:09.571 --> 00:02:11.095
using the chain rule.

00:02:11.095 --> 00:02:12.524
So let's try and do that.

00:02:12.524 --> 00:02:14.688
In that case, F prime of X

00:02:14.688 --> 00:02:16.353
is going to be the derivative

00:02:16.353 --> 00:02:18.163
of this whole thing

00:02:18.163 --> 00:02:19.695
with respect to X plus five

00:02:19.695 --> 00:02:20.948
over X minus one

00:02:20.948 --> 00:02:24.724
which is going to be one over X plus five

00:02:24.724 --> 00:02:27.453
over X minus one

00:02:27.453 --> 00:02:31.997
times the derivative, times the derivative

00:02:31.997 --> 00:02:36.202
with respect to X of X plus five

00:02:36.202 --> 00:02:38.991
over X minus one.

00:02:38.991 --> 00:02:40.118
This is just the chain rule.

00:02:40.118 --> 00:02:41.233
The derivative of this whole thing

00:02:41.233 --> 00:02:42.458
with respect to this expression,

00:02:42.458 --> 00:02:44.772
times the derivative of this expression

00:02:44.772 --> 00:02:47.333
with respect to X.

00:02:47.333 --> 00:02:48.373
Just the chain rule.

00:02:48.373 --> 00:02:49.284
So let's see,

00:02:49.284 --> 00:02:50.600
this is going to be equal to,

00:02:50.600 --> 00:02:52.426
let's use some colors here,

00:02:52.426 --> 00:02:54.829
this, what I'm boxing off in blue,

00:02:54.829 --> 00:02:57.077
that's the same thing as X minus one

00:02:57.077 --> 00:02:59.285
over X plus five.

00:02:59.304 --> 00:03:01.714
I'm just taking the reciprocal of this.

00:03:01.714 --> 00:03:02.755
And then it's going to be times,

00:03:02.755 --> 00:03:04.913
and I'll do this in magenta.

00:03:04.913 --> 00:03:06.769
No that's not magenta.

00:03:06.769 --> 00:03:08.847
So that's going to be times

00:03:08.847 --> 00:03:10.008
and I'm going to rewrite it

00:03:10.008 --> 00:03:11.703
as the derivative with respect to X

00:03:11.703 --> 00:03:16.389
of X plus five times X minus one

00:03:16.389 --> 00:03:17.406
to the negative one power.

00:03:17.406 --> 00:03:18.460
And I like to write it that way

00:03:18.460 --> 00:03:21.086
because I always forget the whole

00:03:21.086 --> 00:03:22.493
quotient rule thing.

00:03:22.493 --> 00:03:24.046
But I remember the product rule.

00:03:24.046 --> 00:03:25.093
So this thing

00:03:25.093 --> 00:03:26.189
so let me rewrite it,

00:03:26.189 --> 00:03:27.757
I think you already appreciate

00:03:27.757 --> 00:03:28.839
why this is the hard way.

00:03:28.839 --> 00:03:30.276
So let me write this

00:03:30.276 --> 00:03:34.178
this is X minus one over X plus five times

00:03:34.178 --> 00:03:37.555
so let's apply the product rule,

00:03:37.555 --> 00:03:38.573
The derivative of X plus five,

00:03:38.573 --> 00:03:41.122
well that's just one times the second term

00:03:41.122 --> 00:03:44.109
times X minus one to the negative one,

00:03:44.186 --> 00:03:46.196
so that's one over X minus one.

00:03:46.196 --> 00:03:47.887
And then plus,

00:03:47.887 --> 00:03:49.806
what's the derivative of X minus one

00:03:49.806 --> 00:03:50.811
over negative one.

00:03:50.811 --> 00:03:51.969
Well, let's see,

00:03:51.969 --> 00:03:54.538
that's going to be, that's going to be

00:03:54.538 --> 00:03:58.848
negative X minus one to
the negative two power.

00:03:58.848 --> 00:04:02.546
So I can say negative one, X minus one

00:04:02.546 --> 00:04:04.171
to the negative two.

00:04:04.171 --> 00:04:06.007
I can just write it like this.

00:04:06.007 --> 00:04:08.653
And then times the
derivative of X minus one

00:04:08.653 --> 00:04:09.756
with respect to X.

00:04:09.756 --> 00:04:11.341
Well that's going to be one.

00:04:11.372 --> 00:04:14.024
And then times this.

00:04:14.024 --> 00:04:15.476
X plus five.

00:04:15.476 --> 00:04:16.211
So actually,

00:04:16.211 --> 00:04:21.171
so times, times, X plus five.

00:04:21.171 --> 00:04:23.618
So all I did here, product rule.

00:04:23.618 --> 00:04:27.130
Derivative, derivative of this

00:04:27.130 --> 00:04:29.943
is one times that.

00:04:29.943 --> 00:04:31.690
And that gave us that over there.

00:04:31.690 --> 00:04:34.854
And then I took the derivative of this

00:04:34.854 --> 00:04:37.288
which is this right over here.

00:04:37.288 --> 00:04:39.695
Negative one over X minus one

00:04:39.695 --> 00:04:42.196
and the, over X minus one squared.

00:04:42.196 --> 00:04:43.670
Or you can say negative X minus one

00:04:43.670 --> 00:04:44.887
to the negative two power

00:04:44.887 --> 00:04:47.631
times this first expression over there.

00:04:47.631 --> 00:04:48.857
So there's that derivative.

00:04:48.857 --> 00:04:53.153
Now let's see if we can simplify things.

00:04:53.153 --> 00:04:56.262
So if we, let's see,

00:04:56.262 --> 00:04:58.285
if we were to, if we were to

00:04:58.285 --> 00:04:59.847
let me just rewrite everything.

00:04:59.847 --> 00:05:05.448
So this is equal to X
minus one over X plus five

00:05:05.801 --> 00:05:09.311
times one over X minus one,

00:05:09.311 --> 00:05:12.297
minus X plus five,

00:05:12.297 --> 00:05:17.939
over X minus one squared.

00:05:17.939 --> 00:05:19.029
Now let's think about what happens

00:05:19.029 --> 00:05:20.332
when we distribute this.

00:05:20.332 --> 00:05:23.097
So when you distribute this times that,

00:05:23.097 --> 00:05:26.051
this numerator cancels
with that denominator

00:05:26.051 --> 00:05:29.305
and so we're going to get, going to get,

00:05:29.305 --> 00:05:30.104
let's see,

00:05:30.104 --> 00:05:32.886
one over X plus five.

00:05:32.886 --> 00:05:37.010
And then when you distribute it over here

00:05:37.010 --> 00:05:38.321
the X plus five is going to cancel

00:05:38.321 --> 00:05:39.815
the X plus five.

00:05:39.815 --> 00:05:41.576
And one of the X minus ones

00:05:41.576 --> 00:05:42.317
is going to cancel

00:05:42.317 --> 00:05:43.548
one of these X minus ones.

00:05:43.548 --> 00:05:44.391
And you're going to be left

00:05:44.391 --> 00:05:47.026
with just one of those X minus ones

00:05:47.026 --> 00:05:48.292
as the denominator.

00:05:48.292 --> 00:05:50.224
And so you get F prime of X

00:05:50.224 --> 00:05:51.340
is equal to this.

00:05:51.340 --> 00:05:52.277
And lucky for us,

00:05:52.277 --> 00:05:54.349
we got the same answer either way.

00:05:54.349 --> 00:05:55.627
But as we see, the easy way

00:05:55.627 --> 00:05:59.052
is much easier than the hard way.