Michael Ovitz is the co-founder of CAA. We cover the best stories and lessons from Michael's all-star cast of clients, why speed and scale were critical ingredients to CAA's success, and how he's translating his legendary work ethic and talent spotting to the investing arena.
Principles & Lessons:
1) Energy and Momentum Elevate Everything Michael points out that “momentum is critical,” and he consistently built it by making countless phone calls every day, holding early-morning meetings, and sharing information among his team. He says, “If you don’t have the energy and the desire and that burning sensation in your gut and the fear of failing…don’t start a business.” The idea is that purposeful, tireless action drives collective progress and amplifies everyone’s achievements in the group.
2) Scale Amplifies Knowledge and Power Michael repeatedly states, “Scale gives you information, and knowledge is power.” At CAA, agents would pool their insights daily: “Everybody knew everything about everything because there was no politics.” By unifying many people with the same goals, they created an expanding reservoir of knowledge and a speed that no competitor could match. In Michael’s view, “If we had 200 agents, it builds to the 200th power,” showing how collective scale multiplies influence.
3) Keep a Relentless Offense Rather Than Playing Defense Michael constantly emphasizes going out to create opportunities instead of waiting passively. He contrasts typical “firefighters” (reactive agents) with his push to “be on offense,” which means assembling projects, seeking bold partnerships, and never relying on random inbound leads. He says, “You can’t be a defensive founder,” indicating that success arises from generating possibilities, not merely responding to problems.
4) Be Willing to Tell Clients the Truth, Even When It Hurts Michael recalls telling a film star that his dailies “weren’t watchable,” prompting the actor to fix the underlying issues. “When you’re dealing with people that are performing talent…nobody tells them the truth,” he says, yet Michael believes that honesty is actually more respectful: “We found it easier to just tell people the truth.” This relentless candor built real loyalty and credibility in a world that typically relied on flattery.
5) Build Distinction with Intentional Image and Culture Michael details many deliberate acts—like using red script covers or arriving en masse at film screenings—to create “mystique.” “We design script covers with a primary color…because people are going to see it,” he explains. At the same time, they refused interviews and carefully controlled photo use: “I didn’t want to talk to the press,” as he wanted people to wonder, “Who are those guys?” This purposeful shaping of brand identity set CAA apart in a noisy industry.
6) Expert Insight Often Emerges from “Artful Cross-Pollination” Michael cites examples where directors and writers draw inspiration from painting, photography, or older films. Recalling the influence of Rembrandt lighting for Gangs of New York, he highlights that deeper exposure to art, books, or other creative fields can yield new ideas: “If you look at a 4-inch square of a Seurat painting, you see dots…as it gets bigger, the picture appears.” He transfers that same principle to business, assembling varied reference points to inform fresh solutions.
7) Relationships and Trust Outweigh Transactional Gains Even amid tough dealmaking, Michael shows how personal kindness cements deeper, enduring bonds. He cites Bill Murray flying out to support him at Yale, or David Letterman calling on Christmas Eve to say, “Thank you…you really came through for me.” These gestures underscore the principle that lasting loyalty and goodwill arise when professionals act as genuine supporters rather than mere negotiators.
8) Balancing Intensity with Family Involvement Is Crucial Though his schedule was “7 days, 7 nights” for decades, Michael explains, “I tried like crazy to be a good father,” adjusting his hours around children’s routines and bringing them on work trips when possible. “If I spent 45 minutes at breakfast, that was usually enough,” he jokes, revealing his obsession with time. Yet he underscores how family remains a necessary anchor, stating that private life and relationships were integral to managing high-pressure, around-the-clock careers.
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