Talent

Cowen and Gross argue that identifying talented people is an underdeveloped skill and that the standard hiring apparatus of resumes, structured interviews and credentials is calibrated to identify competence rather than exceptional ability.

Their practical content is about interviewing differently. They argue for making the conversation genuinely unusual so that the candidate cannot deploy prepared answers, for asking questions that reveal how a person spends unstructured time, for asking what they believe that most people in their field disagree with, for probing the specifics of what they have actually built rather than the roles they have held, and for paying attention to energy and to the rate at which someone updates. They are direct that a structured interview optimised for fairness across candidates systematically screens out the outliers, which is a real trade-off rather than an implementation problem.

They also cover the identification of talent in unusual places: people without conventional credentials, people who are difficult, people whose track record is short but whose rate of improvement is steep, and people in geographies and demographics that standard sourcing does not reach, which they treat as the largest available arbitrage.

The book has no controlled evidence and the authors say so, drawing on their own records in venture investing and in Cowen's Emergent Ventures grant programme. It contradicts the selection research on structured interviewing, which is the strongest objection, and their answer is that the research measures average performance while they are hunting for outliers.

Professor of economics at George Mason University, director of the Mercatus Center and co-author of the Marginal Revolution blog.

The books apply price theory to questions operators actually face: which skills complement machines, how large firms really behave, why long-run growth should outrank near-term redistribution. Talent sets out a practical interviewing method for finding underrated people, drawn from his own grant-making at Emergent Ventures.

George Mason University, Mercatus Center, Marginal Revolution