Book Bin

A summary, critique, and rating of books which I have read or currently reading.

Monday, October 27, 2008

The Google Story...


Author: David A. Vise
Rating: 7

An interesting historical perspective on the years leading up to the development of Google through the first year after Google's initial public offering. Vise gives insights as to the how and why Google developed - not just as a technology, but also as to the company and its culture.

While Vise does a good job giving the historian perspective, my personal take-away information follows under various subheadings.


GOOGLE FOUNDERS AND INITIAL HISTORY
=====================================

* the two founders were second generation computer scientists - a rarity - parents of both founders were professors in computer science, mathematics, and space science - additionally so were their grandparents - both grew up in a university environment

* both founders grew up in the Montessori system and households with continuous philosophical and scientific debate - Montessori - do what interests the student during ages 6-12, then hard labor where you apply hard work and focus through the teen years

* 5 years to go from graduate project to billion dollar company - mining data on the internet for user search inquires

* the page ranking was the PhD thesis

* googles "blankness" was because they couldn't afford a graphic artist to make it look fancy - the simple design resonated with users and they adopted the look in an internet world gone made with obnoxious colors and blinking banners - sometimes simplicity is best

* Google is a perfect case study from the concepts of the Innovator's Dilemma (a book about why big companies fail and how small companies innovate) - they pitched their concept to Alta Vista - the dominant search engine of the day (had the majority of the market share) - they wanted $1m and then they would go back to being PhD students - Alta Vista was owned by DEC - of course, Alta Vista said that they weren't going to pay for it and they didn't want it as searching wasn't in their core competency - their current thought process was that searching is a generic commodity and by itself would never make any money - DEC was another big company that really blew it - didn't know what to do with innovative technology - DEC wasn't the only one - Excite, Yahoo (they suggested that they go start their own business - Yahoo at the time was only interested in human entered rankings)

* Bechtolsheim's three things he looks for when investing in a company - 1) better technology that solves real problems that people can understand 2) business has the potential to raise real profits 3) passionate founders that are capable - he gave them $100,000 (it was a nice round number and he didn't ask for anything in return) to build the computer network (using stacks of inexpensive computers) they needed to get the company going prior to them even having a company - what impressed him the most is that they were to spend the money on real tangible hardware - not on a bunch of advertising (which was the current trend of the day) - possibly the most important nugget of advice Bechtolsheim gave them was to resolve item 2 on his list, they would have to sell advertising as part of the user's search query (something that at the time they were reluctant to do as they didn't want bias in their reporting)


GOOGLE CULTURE FOR INNOVATION
================================

* do no evil - their underlying motto

* a healthy disregard for the impossible - that's the driving factor for their success

* healthy food, drink, and snacks are part of work - keeps the employees on campus - benefits of keeping team environment and people going is more beneficial than the cost of lunch - hired a gourmet chef for the company - additionally, food was healthy which benefited in better fit employees

* shared offices for everyone - including the founders and a couple of open offices - fosters teamwork - no cubicles

* the original work was done by a couple of graduate students in small brainstorming sessions - that concept remains within the company today

* always work in small teams of 3-5 - innovative - much like a college graduate studies - leader dubbed UTL (uber team leader) - as little middle management as possible

* the more you stumble around - the more you might find something valuable - that's the grad school thinking which is the foundation for innovation - google solves problems with technology first and gives it away for free to test if the public agrees - then they figure out if there is a monetary model for profit - they're always thinking long term and not short term

* 20% of your company time spent on personal projects or exploration - something you were passionate about - this came from the university environment whereby professors work 4 days a week and spend 1 day a week on their own research - additionally - google allows them to pool their time up to a month at a time - then your idea can be critically reviewed by your peers during lunch - this can germinate into getting others to to contribute and become a company funded project - big difference between permitted and encouraged - at google it is encouraged - encouraged is actively making time for it

* always have a digital camera - particularly when visiting other companies to get ideas on workspace and culture


GOOGLE BUSINESS
================

* no advertising of the company name - simply word of mouth

* google makes money by generating targeted ads for dynamic searches

* links became the foundation as it reminded them of the citations used in scientific research - the more citations that referenced a professors thoughts/work, the greater importance was placed on that body of knowledge - reported that it takes 10,000 citations of your work to win the Nobel Prize - that concept is the foundation for the google search engine - the more links to a web page the higher the page ranking - additionally, any pages that the high ranking page links to also gets a boost in their rankings - therefore an important page as deemed by the internet community can boost other web pages in importance (that's the google ranking)

* they started building on hardware that they could scrounge around - which meant low cost pc's - essentially generic boxes that they could hook together on a massive scale - they couldn't afford the big iron mainframes of the competing companies - that lesson in technology still is the backbone of the company and is based on Moore's Law - that computing power will double every couple of years - that means a continual influx of inexpensive computing and storage power stacked together in a massive network

* the long tail - in the internet age geography mattered less - low cost distribution enables niche products to hit larger audiences - example - amazon has significant business in books/movies which are obscure favorites - google has wide array of diverse businesses (particularly small to mid-size business who never had access to the large audience market)

* business model initially sold to investors is that while they are unique in innovation; they do care about objectives (every quarter a how are we doing), management and financial focus is 70 (core product - search) - 20 (adjacent products) - 10 (new ideas)


OTHER LESSONS
==============

* In a discussion about Berkiwitz at Ask Jeeves - three questions he asked when he came into the company - 1) understanding of the company and why it's failing (or been sideways), 2) what sort of talent is on board, 3) how was the company and product perceived by customers - first several months he asked questions and then listened - he changed out the entire executive team one area at a time - he wanted to understand how to fix it before he broke it - prior to Berkiwitz coming on board, Ask Jeeves did the opposite of Google - they spent money on marketing and not on infrastructure - he believed you had to have a great product in order to have a great business

* regarding competition - in a fast growing market - it's better to work together to grow the market than it is to kill the competitors and shrink the market - Berkiwitz stated you can compete and cooperate - coopertition

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Wednesday, April 09, 2008

How to Sell at Margins Higher Than Your Competition...

Authors: Lawrence L. Steinmetz, Phd and William T. Brooks
Rating: 8


Businesses Fail
================
* 16/17 businesses fail – most in 2 years – life expectancy is 7.5 years

* businesses fail as a result of not making money – need to understand that you are competing with companies going broke when they slash their pricing (as a desperate attempt to stay alive – they think they can make it up in volume)

* businesses going bust experience three situations – (1) declining gross margin, (2) wages as percentage of sales begins to increase, (3) sales volume begins to increase

(1) declining gross margin (GM = Sales – Cost of Goods Sold) - indicates a pricing problem – which clearly sends a signal that price isn’t high enough compared to costs - three causes of gross margin decline
*** cut price
*** fail to raise price when cogs increases
*** raise price by the same dollar amount as cogs instead of raising by percentage

(2) wages as a percentage of sales begins to increase
*** too many people on the payroll
*** too many people making too much money
*** too many people with nothing to do
*** bottom line – executives must never allow wages as a percentage of sales to increase above a point where they have good profitability

(3) sales volume begins to increase
*** surprisingly businesses fail when sales volume goes up – business is not a game of volume (or market share) – business is a game of margin
*** if a business doesn’t maintain gross margin at an adequate level, it is going to go bust regardless of sales volume!
*** volume goes up because when a business begins to fail it has a cash flow problem which is resolved by selling volume at discounted prices which spirals out of control


Competition Cuts My Price
============================
* Your competitor does not cut your price; you cut your price - cutting price is a self-inflicted wound

* It is a false notion that people (and business) buy on price – and price alone - many say they buy on price; and many even think they do – and most of your customers will tell you they do because they are trying to get you to cut your price

* Price is virtually always more important in the mind of the seller than in the mind of the buyer – intelligent/experienced buyers are worrying about delivery more so than price – in fact delivery, quality, service is far more important than price

* Importance of delivery – delivery relates to all products or services
*** delivery problem is virtually always the trigger event that causes loss of a sale to an existing customer
*** customer doesn’t care about why you can’t deliver
*** customer doesn’t care about your excuse for non-delivery
*** screw up delivery one time and your customer will find another supplier because they have to – they have a need you’re not fulfilling

* We’d can any salesperson who worked for us who was a price-buyer! Can him or fix him.
*** price buying salespeople project their feelings onto their customers
*** price buying salespeople tell the customer they think their own prices are too high – inviting their customers to beat them up on price

* When you don’t talk price you’ve lost
*** says you’re scared – salespeople nervous about their price always signal to the prospect that they are nervous by the way they do/don’t handle price
*** you must be credible, comfortable, and confident when talking price – can you state the price as comfortable as you state the time?
*** never use adverbs and adjectives when you present or discuss price – these are typically used to “cushion” the blow which says you’re willing to cut price – such as our “asking” price, “usual” price, “quoted” price, “suggested” price
*** eye contact is important – breaking off and looking down when discussing price says volumes


Determine Your Competitive Advantage
======================================
* Competitive advantage is price, quality, advertising/promotion/salesmanship, service, and delivery

* Price – intrinsically we believe that price reflects the quality and value of the product or service that we are buying
*** when you say your prices are cheap – that translates to quality and value – conversely, so does when you say your prices are higher translate into a higher quality and value
*** acknowledging that your price is higher triggers a response in the customer that creates the most receptive and responsive atmosphere in which to sell product

* Quality – can be the most important reason your prospect buys
*** selling quality is easy, but only if you have quality and you know what it is – quality is not best, quality is conformance to your prospect’s standards and expectations
*** said another way – quality is the “right” stuff – if it’s too good, then you’re cutting prices – example – walnut wood – not right for subflooring but good for building fine furniture – you’d have to cut pricing to use as subflooring

* Salesmanship (and advertising/promotion) – salespeople sell things to people
*** salesperson’s job is not to treat anything as a commodity – other things are NOT equal – customer needs knowledge on why it’s not – example is gas – different prices by station, cash or credit, car rental without topping off gas – all vary for a “commodity” product – it’s our quality, our service, our delivery, our company policy/procedures, our care and attention, etc. that a salesperson sells

* Service - Most companies don’t like to give customer service, nor the idea that service is the responsibility of all employees
*** Service can be the one single thing that makes or breaks a sale – easy to compete on service as few businesses really want to compete on service – typically the customer is treated as an unnecessary inconvenience – examples – banks 9-5 “full service” hours or government agencies there to “serve”
*** Great service example – Tom Monaghan built Dominoes Pizza which sold in 1998 for $1B by charging for pizza but selling service – he then delivered on that service promise on-time like he said he would
*** Better mousetrap theory is incorrect – if customers are beating a path to your door, then your prices are too low
*** Salespeople must personify customer service – historical studies show that the big dollar earners have one thread in common, they take care of their customers – they’re watchdogs that the promise they made is delivered – nobody pays big bucks for excuses!

* Delivery – you can compete successfully, consistently, and long term with delivery – furthermore, you must competitively compete on delivery if you want to sell at a higher price

* Delivery is why buyers spend the time and trouble to tell you they can get it cheaper somewhere else but don’t – ask yourself during negotiations as to why are they talking to me if they can get it cheaper elsewhere – the answer is delivery

* They can’t get it…
*** they misrepresent your competitor’s pricing
*** the same stuff isn’t available at this time – they really want your quality, your service, your delivery at the other guys price else they’d be getting it from the other guy
*** it really isn’t the same stuff – know/verify what the competition offers

* They can get it, but…
*** they don’t really want to (because you offer better intangibles/delivery)
*** they’d better not buy it there (because their boss or company policy said – due to past delivery or lack of delivery on your competitors)
*** they can’t get it there, even though it’s available (competitor won’t sell to them – typically related to payment)

* The ability to deliver the right stuff at the right place at the right time with good service will actually make you sales and help retain customers – therefore the most significant point to compete on is delivery – conversely, if you have delivery problems you will find it difficult to compete at any price

* Anybody can cut price, get an increase in sales volume, foul up delivery, have quality problems develop, find service falling to pieces, and go broke

* Products and services are sold at the desired price because a business gives its customers quality, service, and on-time delivery

* If you’re going to give your customers what they need and want; you have to charge a premium price – those companies charging a premium price survive the longest, make the most money, and are able to pay the highest wages


A Note About the Pure Price Buyer
===================================
* A pure price buyer’s goal – you are not going to make any money on me – period
*** take all your sales time
*** they do all the complaining – receive concessions – want 100% satisfaction to their ideas, not yours
*** forget to pay
*** they tell others how little they paid – makes your next sale more difficult without price cutting
*** they drive off your good customers – little time left for your good customers
*** they’re not going to buy from you again, anyway – only loyal to the low price vendor at that time
*** require you to “invest up” to supply their needs – and they blackmail you for yet a lower price – “invest up” is to build up your business to suite them – such as equipment, inventory, people, etc.
*** they destroy the credibility of your price and your product or service in the eyes of the end users – these are resellers and they sell on the discount
*** they steal any ideas, intellectual property, information, and knowledge


What Buyers Need
==================
* Most in sales cut their prices because they have never really analyzed what the customer needs versus what they say they need. They will always say they need a low price, but they don't really need a low price - if they do, then it's better not to take their order because they won't pay

* They need two or more vendors - that by definition means that one vendor can charge a higher price and get the business

* Customers need on-time delivery - more than anything else!! If you deliver on-time, you don't have to sell low - note - most businesses eventually have a delivery problem from too much business as a result being too low priced

* They like the idea that they're cutting a deal - buyers are ultimately rewarded not on how much they spend, but on how much that they save - thus if your prices are significantly higher than the competition, you can discount and give a bigger savings while still maintaining a higher price

* They need respect - give a little, get a sale

* They need help and guidance on complex purchases - being an educator to a prospect gives you an advantage against the competition - you earn their respect and loyalty - however, don't expect a prospect to buy on that respect and loyalty, but instead, understand that by being an educator you will always have access to your prospect and the opportunity

* They need to buy what they are told to buy - typically those who own the problem, don't own the buying role - meaning that 85% of the people doing the buying have very little say in what to buy - reason why you need to do backdoor selling - find the real buyer, the end user!! Iron law of backdoor selling - forgiveness is far easier to secure than permission

* They need to get what they buy - deliver your product, provide excellent service, do just as you promised

* They need to minimize inventory without risk - another indicator that it is all about deliver and not price

* They need to purchase from a technically current and financially sound vendor - you need to be around to service

* Need more certainty on "a" type items - "a" items are critical to their business and they can never go out - example - airline "a" is fuel; "b" is beverages and ice; "c" is cocktail sticks - you need to know where your product or service fits in

* Need production / performance capable - all about delivering and being capable (capacity, know-how, or experience)

* Need timely action - accepting orders, answering questions, responding to order problems or delays

* Need speed/accuracy on invoicing and costs - allows your customer to make smart business decision

* Need order and service help - be an educator

* Need quality transportation carriers - even when it's not your fault - delivery will be your fault in the eyes of the customer

* Delivery - most significant component of selling at a high price - low price = high volume = not enough product = late shipments = rushing = bad quality = customer complaints = bad service

* Never compete on low price - concentrate efforts on providing the customer's needs - charge a premium price for your performance

* Easy to do business - they get what they want, when they need it, on-time, and in good shape

* Reliable and dependable - built on history

* Predictability - past relationship and reputation

* Reaction to their needs - be flexible and responsive to their needs

* Short delivery times - no matter what the product or service, everyone wants it yesterday

* Help reduce costs by realizing savings - this is not price cutting, but finding advice and assistance relative to uses and applications of your products and services

* Breadth / depth of quality - make sure your customer is getting the right quality and maximum utilization of your product or service

* Total product offerings - a full line of offerings makes it easy for your customer to purchase from one source

* Knowledge, competence, follow-up - being in good hands - there after the sale

* "Go to bat" - win customers for life when you're willing to help them in a crisis when problems arise

* Complete knowledge - know your stuff

* Knowledge of your customer - know how your customer is going to use your product / service

* Be prepared for sales calls - don't just wing it

* Regular, predictable sales calls - predictability = reliability

* Technical education - educate and you'll receive preferential treatment

* Short shipments - it happens, ship what you can, get the remainder there quickly

* Easy to understand pricing - confusion erodes trust

* Early notice of problems - if there is a delivery problem - let them know asap and help them through your difficulty

* Advanced warning of discontinued items - helping your customers through product changes and on top of developments

* Understandable and legible shipping docs - did they receive what they were supposed to receive and all documents match which makes it easy to do business

* Competitors delivery problems get you profitable sales - when a customer cuts a vendor due to delivery, quality, or service; they no longer qualify on price - they need to know that the current problems won't happen with you


The Math of Pricing or the Volume Myth
=========================================
* With typical real world margins - if you cut your price 10% - your company will have to sell double the current volume - the "make it up with volume" is a myth

* Ask yourself the question - what if I cut 10%, how much more do I need to sell - if you don't know the answer then you shouldn't be negotiating price because you don't know what you're doing - most businesses run a gross margin of around 35%

* Formulas showing that at 35% gross margin and $1m in sales that if you cut the price 10%, you would have to sell $1.8m to make up for that price cut which is doubling of the amount of inventory (remember it's sold at 10% less) - if the formula uses 25% gross margin you would have to sell 3x as much!!

* Think about it - you can't make it up in volume - even if you got the order your delivery system wouldn't be able to handle the capacity - also, do you really want to work twice as hard to give a 10% cut and not make any more money???

* You can actually lose volume and make more money! With a 10% price increase you can lose 1/3rd at a 35% gross margin

* Why raise prices:
*** premium pricing makes a positive statement
*** drop in volume allows better service, timely delivery, quality product - gets you more non-price buying customers
*** company will make more and able to provide higher bonus (tie commissions to gross profit percentage) profit making salespeople are well paid in contrast to order takers

* Good salespeople learn two things:
*** sell at a low price your employer eventually has to cut your commission rate (they have to as they start losing money)
*** sell at a low price - inflict an incredible amount of work on yourself to maintain paltry commissions

* If you make a mistake - go broke overpricing - it doesn't take as much work!!

* It's enlightening to look closely at the welfare of employees who work for discounting operations - ultimately they never make any money because the company doesn't make any money

* Funny conversation...
Person 1 - company xyz is going out of business
Person 2 - you're kidding - that's my favorite
Person 1 - somebody said they weren't making any money
Person 2 - they can't be - they have great discounts - it's always busy

* Point is they we're working their butt's off until the very last day, but went broke because of their gross margin percentage - most companies that go broke, when you ask the staff, they'll say they don't understand as they were so busy - even to the very last day!

* Most businesses go broke do so during a period of sales volume increase because they have cut their prices

* If you do cut your price 10% you would have to sell twice as much and only gain 80% additional commission - your competition will counter with their own price cut which will put you back on a level playing field - point is that the competition never fails to react - therefore, your chance to sell the more amount necessary based on price will go away

* Long/short - if you cut your price it might be short term gain but long term pain as you'll work harder, longer, with great frustration

* Sell at a premium price, keep employer profitable, make more money - employers want to keep profitable salespeople and pay big bucks

* You must accept that you will always be hammered by price cutting fools - you need to sell on quality, service, and delivery - understanding what is required to "make-up" for a price cut can instill a lot of courage in you as you battle against cutting your prices


Facing a Competitor's Price Cuts
=================================
* Situation #1 - You don't know if competitor has cut or by how much
Solution - hold your price, gather intelligence, verify, are your customer's buying at that price, is your competitor both shipping and receiving (if they're shipping but not receiving, then they're dropping the line - don't cut your price - if they're not shipping, then forget about it - no reason to cut)

* Situation #2 - Customer cut, but your volume is not affected
Solution - hold price until your volume is significantly affected (remember how much volume you have to make up for a cut)

* Situation #3 - Customer cut, your volume affected heavily - now you're getting hurt on volume
Solution - hold price and see if extra advertising, promotions or other customer aquisition strategies will work - better service or package - spending money to give customer quality, flawless service, or perfect delivery is always less expensive than cutting prices

* Situation #4 - Customer cut, getting your pants beaten off
Solution - (1) have a temporary special (2) meet your competition (3) drop the product (4) hope you can outlast knowing that their delivery, quality, service goes down - but you have to have more money to lose than the competitor

** remember ** - a customer gained due to a low price concession invariably creates problems and destroys ability to sell to profitable customers.


Cardinal Sins
==============
Two things to avoid (at all costs):
* wowing - comminicating that your prices are too high
* cracking - showing you're willing to negotiate price

* focus on how and why customers hammer you on price

* customers are "trained" to behave a specific way - take the difference between renting and apartment and buying a car

* therefore if they're hammering you on price - very strong possibility you're inviting or encouraging that trained behavior

* when you are wowing a potential customer, you're telling prospects that you feel your price is too high - in return they are going to beat you like a drum

* how comfortable are you about talking price - can you discuss it credibly, comfortably, and confidently? Most let the customer raise the price "issue" - this is another form of wowing as by not mentioning it you're sending the message that it costs too much - there is a proper way to defer price if you haven't sold your value - that is to tell them you'll provide the exact price based upon their specific needs once those needs are understood (or give a range)

* cracking occurs when a salesperson creates a path of least resistance - "we'll work with you", "sharpen the pencil", "tell me where I need to be"... when saying anything other than that's our price - you've cracked - cracking tells the customer you negotiate - c'mon and beat me up!

* you have to ask for higher prices, learn to acknowledge your higher prices, and proceed with the full expectation that you'll make the sale

* other cracks - "usual" price - beat me up as what's the unusual price - same goes for "normal, regular, published, standard, asking, quoted, list, catalog"

* the price IS $### - then you've always sold it for $### - you never sold it otherwise and you fully expect your price

* don't put nouns or pronouns in front of the word price (ie - my price) - it implies that others in the company are selling for a different price - additional - don't put the company name in front of the price - it's asking for the customer to check other competitors

* just because someone asks for a discount doesn't mean you've wowed or cracked - it could be they're trained to do so - remember - just because they ask doesn't mean you have to give

* three rules for selling at premium prices
(1) rule of credibility - prospect has to have total belief in you - no misrepresentation - no excuses - no delivery problems - don't ever lie - don't mislead
(2) don't feel your own price is high - if you think it's high, go do something else - know your prices are higher, but it doesn't mean they're too high - sell value - ultimately people buy value - know that you're giving good value
(3)respect your customer - they're smart, they know they're paying a premium, they have an expectation for paying that premium, you can't have a delivery problem, you must never frustrate those expectations

* selling is a high paid position - giving it away isn't - don't ever forget that


Buyers Are Good Liars
=======================
(1) They really believe they buy on price (they don't)
(2) They don't think they're lying - they're negotiating

* buyers do one of two thing - intimidation or denigration

* intimidation - frightening, scaring, bullying, pressuring - an effort to make you fearful to lose the sale in order to make price concessions

* denigration - defame, disparage, degrade, depreciate the value of what you're selling in order to get a price concession

* fundamental argument against intimidation/denigration - your product is not the same - the prospect knows the difference - the prospect cares about those differences - else they wouldn't be talking to you

* you must tell your customers about why your offering differs - up front and often - never concede that your products or services are the save - you can always differentiate on service

* they'll say they don't care - but they do - the users of the product care greatly about the differences

* the prospect is lying when:
** they won't look you in the eye
** they get personal and use opinion verbs - puts you into a situation whereby you can't argue the customer's point without offending by telling them they're wrong (good salespeople will tactfully correct, bad salespeople will crack) - remember if the personal argument is true, they would be already be buying elsewhere
* they use the subjunctive mode of speaking - exaggerate, fudge their position, there's an if statement being made or unless statement that contains hope (versus an imperative statement is a flat out no because they really do have a sweeter deal)


Hanging In Under Price Cut Pressure
===================================
* acknowledge that your prices are higher - but be tactful - five methods

(1) so response - just say so... (note -- no additional words necessary)
* acknowledges that the price is correct as given
* acknowledges that you're not going to do anything about it
* puts the ball in their corner and makes them come back with a reply that opens up the opportunity for a sales presentation - then you jump into your sales presentation about your differentiation - but NOT PRICE! - talk about quality, service, delivery, support, product, durability, etc.

(2) why not response - or why - or why won't you
* you'll find out what your prospect is really thinking
* opportunity to sell on something other than price that meets their needs

(3) keep on selling - acknowledge and go directly into selling mode
* stand tall - be proud - we get a higher price
* premium price makes a statement - a credibility statement
* acknowledging triggers one of the most open, responsive, receptive frames of min in your prospect - it will trigger a demand for you to make a sales presentation

(4) testimonial or corraboration selling
* get strong testimonials - people don't mind paying a premium price as long as they're not the only ones
* name dropping is essential (a) acknowledge higher price (b) drop name of customer (c) explain why they bough at higher price

(5) look hurt/offended - mild statement of hurt - followed by why your higher prices are justified

* selling is about getting people to buy things they might not otherwise buy because they lack knowledge or information



Indicators that You're Underpricing
====================================

* gross margin is getting smaller on same or rising volume - monitor gross margin by product line or service offering

* your net profit is going down

* prices are below your competitiors - low price makes a statement

* multiple customers tell you how much better priced your organization is compared to your competitors - they want you to continue feeding them that low price

* general absence of any complaints about price

* price hasn't changed over time

* prospects buy withing haggling about price

* getting new customers for no effort on your part

* sudden upsurge in business volume - particularly new customers

* customers want faulty product replaced instead of a refund

* cost of goods increased without a price increase

* a known price buyer starts buying from you

* you have a big backlog of demand - if a customer is willing to wait when your competitor can get it quicker or in stock - then they're buying for your too low price

* customers buy more than they need at the moment

* bad debt collection procedures are increasing in activity - you've become attractive to price buyers and they don't pay

* your customer's gross margin is getting bigger on your product - monitor your customer's gross margin - are they getting fat and making money

* request for quotations increases significantly

* win success rate significantly increases - have to learn how to lose (according to your market share)

* tempted to sell at a higher price than currently asking - go ahead and give it a try - worse that can happen is you lose a deal - you'll never know the top of your price range until you test

* your prospect tells you he would like to work in your sales organization

* your competitors start complaining to your customers

* a distributor is bootlegging your products or charging higher prices

* competition bow out or goes broke - typically that competition will come back against you in the form of a new competitor with cheap equipment

* your customers quit buying from you, but then they come back

* your competitor buy from you (unless there is something prohibiting you from entering a specific market)

* customer insists on you producing a bid/quote

* customer asks if this price list or quote is still valid


Indicators You Might Be Overpricing
===================================
* all competitors are lower prices

* gross profit growing, but sales volume is not

* customer complaints/inquires about what is/is not included in price (customer is trying to validate the price in their mind)

* dollar sales volume is declining - although many caveats

* competitors share or market increases (risk is that they are "buying" it and eventually risk bankruptcy) - better to be small and profitable than big and bankrupt - many blindly feel that market share = profits

* receiving many price complaints and you're not inviting them (wowing / cracking)

* faulty problem or complaints lead to returns/refunds

* wholesalers ask if that's the retail price

* salesperson wonders if they take less commission

* rough time explaining price


Prospects Will Attempt to Get You to Cut Price
===============================================
* stiff arm - stating "I can't pay anymore", "I can only pay x amount"
- ask why not or how did you come up with that figure
- you'll find out who is the decision maker

* state/imply your competitor is better
- if competitor really is, then he wouldn't be talking to you
- might be competitor is, but can't buy from him for one reason (maybe bad payer and cut off)

* let's buy cheap now and see how you perform - "get the foot in the door" price
- they'll never accept a price increase later
- customers talk to one another and they'll all want the lower price all the time

* we only care about price
- call their bluff - they always care about delivery, quality, and service

* they change the quality, service, or delivery expectations after the deal is done
- always come back to pricing if it was discounted for a discounted quality, service, or delivery
- if your prospect wants to change anything - you must always change the price - changes in the original deal always ups the price

* big boss comes in and says something intimidating like "you're still buying from these guys"
- if they didn't want you there, you wouldn't be there - this is simply price hammering

* they buy on their own turf
- alternative of above - price hammering

* they ask you to be at a specific price and start to unbundle your packaged price
- never, ever unbundle a packaged price - you'll only get a partial order and lose the remainder of the deal

* they criticize your quality, service, or delivery
- don't argue, don't disagree, explain how it's fixed and don't drop your price

* fudge on how much they are going to buy
- charge them for what quantities that they order and give them a credit at the end of the year for the discounted price (a) they have to order the total amount to get discount (b) get to use their money during that period (c) giving them credit (not cash) ensures future business

* use their name as a reference
- you can use their name anyways - it doesn't mean you have to cut your price

* they keep stalling - looking for concessions
- stall tactic always goes in favor of the buyer - be patient - eventually they will burn out their time

* insist there is no difference in what you're selling
- ask to talk to those users who don't see a difference within their company - gives you opportunity for backdoor selling

* they do homework and know about xyz problem(s)
- they're trying to scuttle your confidence
- sometimes it's simply a fishing expedition such as "we hear you have problems" - don't fall prey to fishing
- if it's real - acknowledge, explain fix, don't drop price

* appear busy - just want the price
- offer to come back when he/she has the time - ask to make an appointment

* they use the old rock bottom price ploy
- ask them if they are ready to buy right now - tell them they have two minutes - give them a price you want
- get the order or leave - it's a yes/no decision at this point
- if they're not really ready to buy - ask them when they're willing to commit

* act unreasonable and do crazy things
- remember, the more bizarre behavior, the higher the probability that they have to buy from you - they're under pressure to do so and get your lowest price

* hit you with terms to their advantage / use false breaking-off pints
- you must sell at x price or your done - tell them you can't do that, excuse yourself, and let them know that you'll call them again in x amount of time

* the turnover game
- one talks about price - other talks about another attribute - in the end, they mix and match what they want to hear
- when this happens, the price goes back to the top original position with each and every player

* they ask for throw-ins
- happens at time of signing the contract - just say no

* we could buy, if only .....xyz
- ask for the signed order first before committing to the if only

* they learn to get tougher at the end
- when you sense a deal - stop negotiating - push time delay onto them to come make the deal

* reduce our vendors - so cut your price
- push them into the you must buy at my offered price within the next two minutes

* sit you so you face the sun and can't see (or any other tactic to make you feel inferior)
- acknowledge what they did and ask for a remedy (such as I'm in the sun, is there another seat)

* ask for a prototype first
- charge for it - it's your time, money, efforts, ideas, creativity, etc.
- put a copyright on it - keep original
- apply price to purchase price
- if they don't agree, then walk away

* they have competitors information on their desk
- acknowledge the competitor - and sell your quality, service, and delivery

* split up your sales team as in salesperson x said they'd sell it cheaper
- simply state that you're not authorized t make that concession - they'll have to speak to x or buy it today at the current price

* but we're a really great customer
- being a great customer doesn't mean price reduction, they are supposed to be a great customer just as you are supposed to be a great vendor


Finalize a Transaction
=======================
* know your competitive advantage and use it! - it's quality, service, advertising, promotion, salesmanship, or ability to deliver

* sell to users and decision makers

* FAB strategy - features, advantages, benefits - emphasize how product/services features and advantages translate into benefits

* feature any price objections - acknowledge high price and explain quality, service, and delivery

* use testimonials - customer don't want to be the only one

* explain benefits of all your services

* use unique selling points - differentiate yourself and tell everyone why you are unique and different

* get personal and provide inside information about what's coming next

* make the prospect beholden to you - a hero - genuine thoughtfulness - people buy from people

* ask prospect what you can do for them and their organization

* call at the right time - don't drop in or cold call - always have a pre-arranged appointment - be on time for appointment - additionally, if they're not ready, ask for a new appointment - be respectful and courteous

* don't be lazy or lethargic - selling takes energy - return phone calls, follow-up on leads, study call reports, analyze trends

* listen and pay attention

* sales techniques to use for a price buyer
- know their needs (they always need more than low price)
- never argue - it's a scare tactic
- explain why other customers buy at your price
- explain how product/service will help the user

* explain the economics of price - they need to buy more to get their price

* determine why (delivery, quality, service but not price) the customer is unhappy with their current supplier

* don't invite price comparison - talk value and not price

* learn to use stoppers (no longer willing to negotiate)
- I can't do any better and then be willing to walk out
- explain to them what they'll be losing
- clear statement of we are better
- use the non-quote - I'll come back later after you've looked around
- I'be to to get to my next customer - puts pressure on customer to sing the deal
- we are pushing capacity - no reason to make a deal
- quality requirements - again no reason to make a deal

* make sure your customer knows that all things aren't equal

* tell your prospect that this (quality, service, delivery) is what their users really want (and not low price)


Guidelines on Pricing
======================
* mature markets price low - new/developing markets price high

* intensive market coverage tends to price low - selective market coverage must price high

* low promotional costs allows lower prices - high promotional costs need higher prices to cover margins

* commodity product prices low unless sell service and delivery - esoteric/exotic products have higher prices

* mass produced products equates to low price - custom products equate to high price for uniqueness

* single use product with only one purpose demands a lower price - a multi-functional use product that has multiple uses demands a higher price


Final Thoughts
===============
* you can not have late deliveries - period! - nobody pays big bucks for excuses

* you can not have defective products, parts or unqualified people

* you can not have poor ethics or integrity

* business is a game of margins - not a game of volume

* your competition does not cut your price - you do! - it's a self-inflicted wound

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Thursday, November 15, 2007

Writing Brave & Free...

Author: Ted Kooser & Steve Cox
Rating: 8

Great book on writing - two reasons - (1) subject matter is broken down into tiny bitesize pieces that are easy to understand and (2) because while there are rules, there are no rules, or at least don't sweat it - the authors put the reader at ease and encourage more writing.

Highly recommended for those wanting to write more - doesn't matter if writing is intended for professional publication, web logs, or personal journals.

01. Writing Brave and Free
* confidence - a writers most valuable tool - it's inside
* tool kit - every writer needs a toolkit - physical (computer or paper) and mental (rules, style, organization)
* imitation - every writer learns and models their work by reading and imitating others
* Carl Sandburg's big three - confidence, joy in writing, and heart
* experience - your own experiences are unique - tell the best story
* sharing - writing shares, extends, and makes permanent your experiences
* do it - the more you write the more fun it becomes - do a little every day - set aside habit forming time and place - do it for you - then do it to be heard

02. What's Standing in Your Way
* fear of failure - reduce your standards - like running - can't do 4 minute mile on day one - therefore, go at leisurely pace
* writers block - typically from fear of failure - lower your standards and move forward
* big picture - break it down into little pieces of writing - they'll add up to big things

03. What Do You Know
* about what - whatever you feel like - total freedom
* no rules - bottom line is there are no writing rules - just remember that someone is going to read what you've written and the point of any "rule" is not to discourage the reader
* knowledge - direct from your life experiences
* not just memories - what you feel, see, hear, touch, taste, smell, emotions, imagine - point is what you know is not just the facts

04. Enchanting Details
* details - readers are looking for the unique experiences - why is good good
* nothing is ordinary if the details are given
* more details - sensations, feelings, ideas - example given - hotdogs versus wrinkled hotdogs - pay attention to the smallest of things
* writing lets the details come out - go with the flow

05. No Shoulds, No Should Nots
* rhythm - writing should sound rhythmic - flow - even if that means not grammatically correct
* write clearly - the purpose of rules is to make the writing transparent to the reader - so they can enjoy the story being told and not the mannerisms
* paradox - writing rules have many paradoxes - not always right or wrong
* rules are really just tools
* journal - use journals to draft or sketch out ideas
* organization - logical flow helps the reader
* outline - helps to think logically - outlining others works allows you to see their flow and provides learning experience - puts you in writer's shoes
* do it more - more you write, more you read with writing in mind and learn the tools others use

06. Input and Output
* input - what you write about
* output - what you write about it
* five senses - see, hear, taste, smell, touch
* three elements of input - clear sensation (focused), feelings toward the clear sensation, thoughts about the feelings - sense, feel, think are writing's inputs
* transformation - writing transforms inputs to output
* output - good: information (facts), better: knowledge (organizing summaries), best: wisdom (assessment based on experience) - information, knowledge, wisdom are writing's outputs

07. Ten Minute Exercise
* writers practice filling up notebooks with scribbles
* writing is less to do with talent than consistent practice
* write for at least ten minutes daily
* making marks is best way to confront blank page - don't worry about it being good - marking will get you going - no complete sentences, no worry grammar or spelling
* stopping - stop at a place where you still have something to write so you can start off again tomorrow
* ten minute sessions are for you only - point of the exercise is to develop the habit
* habits - working with words, feeling the rhythm, going deep into the details of a subject, think about the direction

08. Overcoming Obstacles to Extended Writing
* time - do it every day and make it a habit
* motivation - find a reward for achieving a doable goal
* discipline - make it a pleasurable habit
* perfectionism - lower your standards - allow drafts
* money - turn other free time to writing time
* style - (pertains to getting published) - find publisher that fits yours
* fear of failure - chance to learn - keep trying and get better
* I'm overwhelmed - focus on the parts of writing that's enjoyable
* fatiguing - work with love for what you're doing
* procrastination - deciding to procrastinate is deciding not to write - don't
* not in mood - find your spirit
* impatient - remember - it's one word at a time
* perfection - don't appraise yourself
* humiliation - this comes from lack of self-respect - get over it - no worries
* single draft - not realistic - go through many drafts
* fear - overcome through experience - do it again and again

09. Developing the Habit of Writing
* habits - routines carried over from one day to the next
* write every day - eventually it will become seductive, habit-forming
* right time - find a flexible time slot
* right place - whatever is right - good lighting, clear space, comfortable
* associate with pleasure - window next to garden, coffee house, quiet music, grain of an oak desk, texture/color of paper, fine pen
* availability - readily accessible when time is right

10. Don't Forget to Read
* writers learn to write by imitation
* more reading = more writing ingredients for your style, your toolbox

11. The Writer's Tools
* deep reflection - write in longhand - pen/paper - it's a physical activity
* getting things out - use a computer - type as fast as think - don't edit - revise later
* computer revision - don't cut and paste

12. Your Clean, Well Lighted Writing Place
* writing is more than thinking - it's also physical and emotional
* place needs to be where you want to be as well as private and comfortable - no interruptions
* no inhibitors to imagination - stimulates creativity - relaxing

13. Relax! The World is Resting on Your Shoulders
* learn to relax
* shoulder exercises for relaxation
* long walks to get recharged

14. What Reader Do You Have in Mind?
* have a reader in mind
* find common ground with your reader
* what do you know that a stranger will find compelling

15. Writing for Friends and Relations
* tell the truth
* when stuck - (1) keep writing (2) write around it (3) research

16. Writing for Strangers
* welcome your listener - warmth and generosity by being conversational, direct, factual
* then move from comfy to the fantastic
* can be cliche openings - they're boring but comfy
* open about the weather - is it hot/cold enough for you
* open with things the reader knows - snow falling on my cheeks - people understand that it's cold
* don't forget - show don't tell - instead of saying it's cold - talk about the snow prickling my face like tiny cubes of ice - reader gets the it's cold message
* a word the reader doesn't understand is not worth using in the lead

17. Taking Control
* every reader is going to be swayed by previous experiences - their viewpoint different
* increasing or decreasing the difficulty of reading - more difficult is slow reading - easier is fast reading - so if describing a scene the difficulty goes up - to describe the action the difficulty goes down (maybe even to single words such as swing, punch, jab)
* writing is to some degree about persuading the reader
* clear and vigorous

18. About Your Imaginary Reader
* meet your reader halfway by suiting your style to your readership - style in regards to topic, content, subject, attitude
* imagining reader leads to where to get published
* think about the imaginary reader when editing

19. The Country of Memory
* multilayered - memory is Shrek - layered like an onion - deeper you go the richer the details
* stop to think about it
* triggers release the inner layers
* the detail makes your writing vivid
* most evocative - least expected
* think about people
* then add the places
* finally the things

20. Writing about One Thing
* strangers will expect your writing to be about one main thing
* power of drafts - writing brings people, places, things to mind which get articulated - eventually each draft starts to focus and distill an answer as to the one thing

21. Getting Organized
* intro, couple examples, conclusion start the critical thinking
* an outline forces comprehensive
* benefit is to start the process of writing - outline doesn't need to be complete
* freewriting thoughts, ideas, in grouped scribble for ten minutes can help
* oral dictation

22. Sensory Detail
* vivid writing - vision, hearing, touch, taste, smell
* synesthesia - stimulation of one sense evoke perception in another - example - the sound of water is shimmering - whereby sound is described by vision
* don't tell the reader if a person is happy or sad - explain it through senses

23. Suspense
* want reader to keep asking how does the hero's situation get resolved
* it's not what you say, it's the information that you withhold

24. The Size and Scope of Things
* to figure the middle of your writing, you need to figure out how big
* however - be brief - leave them hungry for more of your writing
* writing poems is good exercise in making brief points
* imagined reader or plan to publish may dictate scope

25. A Sentimental Journey
* the authors don't like sentimental (unless writing a greeting card) - work past that by simply and purely expressing yourself (you don't need to lather it on)

26. Transparency
* reading state - when a reader reaches that dreamlike state beyond the surface of the page - like looking at a picture through a piece of glass
* to stay in reading state the writing must be transparent
* following conventional grammar and spelling keeps the writing transparent
* using wrong version of word ruins transparency - example - I want to there party instead of their party - or over their instead of over there
* non-transparency causes the reader to pop back out of the book
* Strunk and White's Elements of Style is only book on grammar necessary

27. The Unexpected Detail
* unexpected details are items that pop out / contrast
* unexpected details bring the scene to life
* unexpected details are used to authenticate scenes

28. It's a Figure of Speech
* write about why things happened not just facts - or how they seemed to you - then moving up the ladder from information to knowledge to wisdom - from physical sensation to emotional ideas - leaving objects/facts and moving to appearances/interpretation - then comparison writing such as clouds with whales is needed
* metaphor - a way of describing one thing in terms of another
* metaphors add strength to writing
* metaphors are risky if the reader doesn't have the experience or their experience differs - example given is to say xyz roars like a thunderstorm - the writer is thinking power/glory and the reader is thinking scary/terror
* a vivid metaphor outweighs the risks as it is compelling
* metaphors create a bond of associations and help the reader remember your writing
* metaphors can be powerful persuasion
* those in business have to make conscious effort to use metaphors when writing outside business
* don't lay it on too thick - saying coffee is black as oil at the wellhead can be written simply as coffee is black as oil
* metaphors vs. similes - metaphors are forceful whereby similes are like, casual - metaphors say x = y whereby similes x is like y - metaphor has authority

29. Before Us on the Table
* writers try to have an affect upon their readers, but the readers' past experiences can change the affect; therefore...
* limit the variety of association any noun may call up - less clutter, the better
* steer your nouns with adjectives
* adjectives specifying numbers are helpful
* use adjectives to remove associations you don't want the reader to have
* however, too many adjectives make work flabby

30. Be Positive, Emphatic, Clear and Active
* readers are hungry to learn what you know - through an interesting story, open a world rich with information, knowledge, and wisdom
* write positively, with emphasis, and actively
* write positively - any no, not, never change to a positive statement
* write positively - use and instead of or - and is affirmative and or suggests hesitation
* write positively - avoid opening a paragraph with although
* write positively - state what you know or believe first and then acknowledge with others opinions as support material
* with emphasis - strong beginning and ending
* with emphasis - stick to the point - avoid ambiguity - clear / not complex -
* with emphasis - us numbers instead of numerous - about real people, places, things
* write actively - about people doing things
* write actively - active verbs, assign responsibility - for example - he did it instead of it was done

31. Transformative Experience
* transformative experience is transforming your information, knowledge, and wisdom into words which express meaning
* sink into the story telling
* eager to write
* moment of change makes the best stories

32. Revise and Wait
* writing is like shoveling snow during a storm - the details accumulate faster than you can get it done - however, revising is like combing hair and getting out the tangles leaving it smooth
* every piece of writing needs some revising
* first step - set it aside and let it cool - then you can really see it - so many times I'll write, then come back and wonder what I was writing
* look for peculiar syntax, tortured grammar, illogical thinking, misspellings, wordiness
* it can always be improved
* keep writing - shift to another piece and then go back
* learn writing by writing (and revising)

33. Getting Advice, Taking Criticism
* write with the door closed, rewrite with the door open - means you write the first draft for yourself and revise to communicate with others
* everyone needs help - look at the acknowledgements of any book
* first reader - tell you where it doesn't make sense - not clear - and what parts do and reach across the writer / reader divide
* don't look for value judgement - ie: is it good
* don't look for scaling - 1-10 - ask about clearness, ask about interest
* encourage your reader to ask the dumb questions - and then thank them
* ask tough questions - what did they like, what did they not like - ask them to be specific
* ask reader to read at their convenience and to write notes
* pointed questions - did your mind drift, what to omit, what else to include
* writing groups - encourage each other, specific constructive criticism, have fun

34-45 - Business of writing
* discusses publishing - writers encourage publishing - start with low expectations - publish everywhere possible
* become an expert
* introduce yourself
* be persistent
* discussion of copyrights, contracts, etc.

Tuesday, March 13, 2007

Moneyball...

Author: Michael Lewis
Rating: 9

Moneyball is a behind the scenes look at baseball's Oakland Athletics during the 2002 playing season. The intriguing statistic about the A's is they finished both the 2000 and 2001 season with the lowest payroll and yet had one of the best records in baseball.

What Oakland does is two things - Billy Beane has to be one of the shrewdest negotiators in all of baseball and secondly they bust the prejudices rooted in baseball tradition.

Those prejudices are the ability to run, throw, field, hit, and hit with power - what's knows as the "tools". Those prejudices are put into place by the scouts - the scouts have traditionally been the heart of the game deciding who gets to play and in turn one could say that how the game of baseball is played is really an image of the scouts mental picture of what a ball player should be.

The Billy Beane story is of itself a widely fascinating story of a kid who had all the traditional "tools" but couldn't make the mental leap into pro baseball because he didn't know how to fail. He was always the star, it came easy, so when he struggled a wall came down between him and his talent that led to big league disaster as he struggled at the plate - spectacular one moment, awful the next which typically unraveled into a mess. In 1990, he left the field and walked into the front office and chose to retire and be a scout.

Then a series of events happened - in 1995 the A's were sold to businessmen who wanted to run the team as a business. Starting in 1993 the teams GM started a bit of a scientific experiment concluding that batting average didn't correlate to the team score, but that on base percentage and slugging percentage did. Those two events produced a system whereby scoring runs was a process that could be built with efficiency (payroll to runs scored in a season) in order for the A's to run as an effective business. Billy Beane ran with that mantra and started to look for undervalued minor league and amateur players.

One of the most intriguing phenoms of baseball is the draft and the treatment of amateur players. Once selected, a player's rights is with that team for 7 years (if in the minors) and up to 6 years (if in the majors). Therefore the draft becomes critical in locking in a low salary high performing workhorse (which is how players are looked at in professional sports).

What Oakland looks for in a draftee - number of walks (ability to control the strike zone), on base percentage, pitches seen per plate appearance. College players and not high school. In other words they break the prejudice by not looking at the physical player, but by what they have done to provide offense. They draft ballplayers (not stars or might be's).

An interesting tidbit - win with nobodies - the fans show up - the nobodies become stars - lose with stars - the fans stay home - the stars become nobodies - assembling nobodies into a ruthlessly efficient machine for winning baseball games and watching them become stars - priceless

The system is more important than the individual - baseball players are fungible - on-base percentage and slugging percentage are the keys to winning and can be used to predict a winning season - on-base percentage is 3x more valuable than slugging percentage - the variances between the best and worst fielders on the outcome of the game is significantly smaller than the variance between the best and worst hitters on the outcome of the game - the important thing when losing a key player is to replace the aggregate

On coaching - coach creates an alternate scale to judge the performance - the player may be a D, but coach makes the player feel like it's a B and rising - builds confidence - coach helps the player fool himself, feel better than he was until he actually becomes better than he was - then it becomes fun which equates to outstanding performances

The chapter regarding Scott Hatteberg is priceless and should be read by every young ballplayer.

Prejudices in pitching - hits and the all famous earned run statistics are useless - walks, strikeouts, home runs, extra base hits - that's how pitchers should be evaluated - again as above, it's not the looks or how fast he pitches, but what he has accomplished, the ability/efficiency to get outs

On managing - while the mantra is you don't change guys; they are who they are - Billy will tweak them - for example he made a $50 bet every time a guy swung at an outside pitch - if he tried to pull it he owed Billy $50 - if he went opposite way Billy owed him $50 - this gives Billy the "excuse" to nitpick - it's a subversive way to keep nagging the player without him knowing about it

Negative momentum:
1) every form of strength covers one weakness and creates another, and therefore every form of strength is also a form of weakness and every weakness a strength
2) the balance of strategies always favors the team which is behind
3) psychology tends to pull the winners down and push the losers upwards

Saturday, February 03, 2007

Five Dysfunctions of a Team, The...

Author: Patrick Lencioni
Rating: 9

5 Dysfunctions is written as a leadership fable in the first section and then presents the fundamentals in the second section. This works very well as it gives the reader a great perspective on the utilization of the tools presented by the author in the second part of the book.

teamwork - remains the ultimate competitive advantage, both because it is so powerful and so rare - if you get all the people in the organization rowing in the same direction you could dominate any industry, in any market, against any competition at any time - however, teams are inherently dysfunctional because they are made up of imperfect human beings - success comes only for those groups that overcome the human behavioral tendencies that corrupt teams and breed dysfunctional politics within them.

* new CEO for the first two weeks spent time talking with employees, walking the halls, silently observing as many meetings as possible - realized tension was high and meetings slow and uninteresting with few real exchanges

* used a series of two day executive retreats to build executive team

* moments of truth are best handled face to face

* single priority - getting their act together as a team

* ok to disagree as long as the exchange is face to face - don't ever slam a teammate when that person isn't in the room

* a fractured team is just like a broken arm or leg - fixing it is painful and sometimes you have to rebreak it to make it heal correctly - the rebreak hurts a lot more because you have to do it on purpose

* started first team meeting stating that there will be changes - very possible that some won't find the new company the kind of place where they want to work - and that's ok - not a threat - just a realistic probability

* everything the executive team does at the off-site is about one thing only - making the company succeed - repeated that purpose as the opening statement every day for every off-site

* ground rules for meeting (a) be present (b) participate - be fully engaged in whatever we're talking about

* first exercise of the off-site was to have everyone answer five non-intrusive personal questions having to do with their backgrounds - hometown, kids in family, childhood hobbies, biggest challenge growing up, first job

* second exercise of the off-site was to spend five minutes deciding what each person believed were their single biggest strength and weakness in terms of their contribution to the company's success or failure - the CEO went first

* when everyone is focused on the team's results and using those to define success - then individual ego will not get out of hand because if the team loses, everyone loses - a team can beat a bigger, faster, more talented group of players - job of ceo is to create best team possible and not to shepherd the careers of individuals - ambiguous team goals makes it easy to revert back to focusing on individual success

* a team needs a scorecard to determine winning - do not leave interpretation for defining the team's success as doing so will give opportunity for ego to sneak in - examples of scorecard categories are revenue, expenses, new customer acquisition, current customer satisfaction, employee retention, market awareness, and product quality - example group picked new customer acquisition and then specifically the measurement was 18 new customers by end of year - should be measured monthly - adopt a set of common goals and measurements which the team actually uses to make collective decisions on a daily basis

* politics defined - when people choose their words and actions based on how they want others to react rather than based on what they really think

* meetings must have engagement in productive and ideological conflict, passionate and unfiltered debate about what needs to be done to succeed - think of the movie example - a movie is only exciting when there is conflict - without it we don't care - if there's nothing worth debating, then there shouldn't be a meeting

* one doesn't ever get completely used to conflict - real conflict is uncomfortable - key is to keep doing it anyway

* a leader listens, decides, and then commands

* consensus can be bad - if consensus happens quickly and naturally then ok - however, consensus is typically an attempt to please everyone (remember the space shuttle launch and disaster from o-ring malfunction after consensus to launch was achieved even though some members knew there could be a temperature problem) - most people don't need to get their way, they just know that their input was valued

* peer accountability most difficult - some are overly helpful but dropping a ball, others get defensive, others are intimidating, etc. - push with respect and never hold back

* trust defined - knowing when a team member does push you, they're doing it because they care about the team

* team member - be intolerant of behavior that demonstrates an absence of trust or focus on individual ego - encourage productive conflict, clear commitments, and group accountability at the peer to peer level - committed to team over your direct reports (called your first team)

* firing a team member is always difficult but may be necessary if the individual holds back the team - explain that this is going to be a tough conversation - state that you feel they are not fit for the team and that they don't really want to be here - explain that if they were to stay their behavior would have to change swiftly and if they really want to go through with that change - best to give them severance and make immediate exit - the remaining team members will have some degree of mourning and self doubt - explain that the reason it was necessary (the reason why you fire) is you don't want to lose the rest of the team

* Five dysfunctions form an interrelated model - if one isn't there it is potentially lethal for the success of a team - they go together, you cannot ignore one - teamwork deteriorates if a dysfunction is allowed to flourish

* first dysfunction - absence of trust (need for invulnerability) - trust is foundation of real teamwork - the most critical part of teamwork - great teams do not hold back with one another - they are unafraid to air dirty laundry - admit mistakes, weaknesses and concerns without fear of reprisal - conversely a team without trust has a lack of debate and interaction

* second dysfunction - fear of conflict (preserving a sense of artificial harmony) - harmony is bad if it comes only as a result of people holding back their opinions and honest concerns - result of artificial harmony is the issues are bottled up and carried around - delays decisions - veiled discussions and guarded comments

* third dysfunction - lack of commitment (allows ambiguity) - failure to buy in to decisions - when people don't unload their opinions (second dysfunction) then they won't really get on board and be committed (feigned agreement) - ** disagree and commit **

* fourth dysfunction - avoidance of accountability (allows low standards) - hold each other accountable for the team's goals - it's hard as people want to avoid PEER conflict - ** enter the danger **

* fifth dysfunction - inattention to results (need for status and ego ) - tendency of team members to seek out individual recognition and attention at the expense of collective results (goals of the team) - call also be division or department recognition above that of the team

Positive Model
==============
1. Trust another
2. Engage in positive conflict
3. Commit to decisions
4. Hold each other accountable
5. Focus achievement of team

** re-read p.195-220 often

Friday, February 02, 2007

Raving Fans...

Authors: Ken Blanchard and Sheldon Bowles
Rating: 8

Simply a great book that gets it's message across using a simple story that can be read in a single night. The message is clear - customer satisfaction simply isn't good enough (there's no customer "ownership") - a dedication to creating raving fans will propel your business to the top.

* successful organizations have one common central focus: customers - success comes to those who are obsessed with looking after customers as goods aren't sold - products and services are bought.

* all good customer service is a result of a system - systems are beautiful - they guarantee consistency - systems set the guidelines - systems achieve a result - they need proper training to implement

* however, negative systems are bad - what is the cost of offending / alienating / abusing customers - example given was dressing room limits to stop the one thief offends everyone else who wants a better customer experience

* common theme in all stories - all staff had nametags - creates identification with the customer - more personable one on one - created a greeting that put forward a great first impression - a symbolic hug

* another theme is all employees are empowered (given the initiative) to provide the best customer service - they go beyond the system - even if that means purchasing a competitor's product for the customer - not only does this level of service impress the customer, but it also keeps the customer in your company's business (story was literally, but could also be figuratively) - grade employees on customer service - tie raises and promotions to customer service

* it's the little things that make doing business more comfortable or convenient that impress customers - examples given are play areas for children with supervisors, clean washrooms

* make the customer experience such that is makes it easy to buy your product or service

* provide a method of customer self service when appropriate

* track customer selections over time to provide suggested future purchases - sell more products or services by servicing

* customer defined: everyone touched by the product or service

* customer service defined: looking after every whim of the customer within the window you've defined in your vision as your particular customer service product

* listen closely to both what your customers (everyone touched by the product or service) say and what they don't say - trap#1 is to listen to the music as well as the lyrics or in other words what people really want doesn't show up directly in what they say - they may say one thing and mean another - trap#2 is customer silence - what they don't say speaks volumes as most people don't think it will do any good - therefore silence is a message and typically it's not a good one - trap#3 is the word "fine" - everything's fine really means problems - at minimal it's not a raving fan

* customers have focus - talk with them to find the focus - then mine it for information - either work it into your own vision or reject it - the narrower the customer's focus the more important that vision is to the customer and often no compromise is acceptable

* don't forget that while the customer's vision is narrow, they do care about everything - they just haven't thought through their whole relationship with you - they've only thought about a specific priority

* great quote during a discussion of customer service - Manager says, "all I hear is the thundering applause of one hand clapping" which looks like this - flaps his hand up and down waving good-bye

* attitude and courtesy - if you expect bad, you'll get bad - stop complaining - differentiate yourself from the competition - be courteous - smile

* customers allow themselves to become raving fans only when they can count on your products or service time and time again - the worst thing is to meet expectations one time, fall short another, and exceed every now and then - systems and training are what allows you to guarantee delivery

* big changes or achievements can be made by improving or changing 1% continuously - allows you to add flexibility (magic ingredient) rather than just change - visions either grow or they die - small, incremental changes allow the flexibility to change the vision with customer's changing needs and wants

* flexibility is the what and consistency is the how

* secret #1 - the source - decide what you want - you have to have the vision of perfection centered on the customer - that becomes the goal - impose that vision over the entire organization - convert the image to action - fix the bumps and warts

* secret #2 - the market - discover what the customer wants - alter your vision if need be - however the customer's vision is only in context to your vision - occasionally you must ignore the customer's vision and ask them to take their business elsewhere (being everything to everybody doesn't work) - constantly strive to improve

* secret #3 - the experience - deliver plus one - deliver every time with no exceptions contemplated or allowed - consistency is critical and creates credibility (a bonus, even if it's free, but not delivered to perfection causes customer anger) - start small, deliver perfection, then grow on success towards the total vision - meet what you promise first, exceed second - plus one is ongoing improvement, moving ahead beyond your vision, improve by 1% continuously going forward to keep from getting overwhelmed

Wednesday, January 03, 2007

Shut Up, Stop Whining, & Get a Life...


Author: Larry Winget
Rating: 7

Very interesting book from the author who considers himself the pitbull of personal development. The book is written in a confrontational style in an attempt to get the reader to think. There were some great moments in this book that just clicked for me. There were others (not a lot, but some) that I didn't exactly agree with. And then there were a couple points where he's just being crass - I think he could have used a really good editor - but then maybe he did but he ignored their advice. Either way, there are gems of brilliance in this book.

I think the best way to review this book is to note those items that spoke true for me...

* a continual theme throughout the book is that the truth hurts - it's tough - we all know what we should do, but it requires effort or takes us out of our comfort zone - however, if we follow that path we will move towards our true purpose in life.

* success is achieved through service and taking on personal responsibility.

SHUT UP
=======

* stop talking and listen - really listen to others - listen to family and build relationships - listen to your customers as they'll tell you how to succeed and serve them well - listen to experts and ask for their help - listen to great music that relaxes and inspires - listen to your higher self, your conscience, God.

* don't listen to people who talk bad about others, office gossip, others who talk down to you for any reason at any time, or yourself when you're talking down / negative self-talk.

STOP WHINING
=============

* stop whining - take responsibility for yourself, your actions, your life - example for me: people are fat because they eat too much. period. overeating and no exercise is my fault and not the food services business ie - McDonald's, etc.

* stuff happens - it's what makes life interesting - take responsibility, clean your mess, fix your problem, commit to do better.

* whining prolongs the problem - cannot focus on fixing the problem when whining - make a plan instead - a plan energizes your actions - focused on the solution - that's when life moves forward.

GET A LIFE
==========

* you happen to life

* life begins at the end of your comfort zone - taken from conversations with God - book 3 - Neale Donald Walsch

* you are always able to still do more - are you willing? - the world is made up of the wills and the will nots - be a will!

* your life is the way it is because you have not been willing to do what it takes to make it different.

* want only matters if you want enough to be willing to do whatever it takes to achieve the desired results

* excuses give you a way to keep from accepting responsibility - excuses point the finger of blame away from yourself - reasons force you to point the finger of blame in the direction it should be pointed - yourself

* three reasons people are not successful: stupidity, laziness, don't care attitude
*** stupidity - you should be reading, listening, and learning more every day
*** laziness - implementation of knowledge is power - it is what you do with what you know that matters - takes effort
*** don't care attitude - the ultimate insult to yourself and your family

LIVE BY DESIGN
==============

* what you think about, talk about, and do something about is what comes about - in other words any problem can boil down to how you think, what you say, and your actions - therefore... create thoughts, create words, create action and the world belongs to you

* limited thinking produces limited results - limited thinking comes from a limited view of who you are - expand your vision of who you are then you will think in bigger ways, express yourself differently, and act differently

* call yourself something and you will become that something - what you say programs what happens - words attract to you either the life you want or the life you do not want - proclaim what you want

* affirmations are powerful - however they need to be followed up with the "do" side of the equation

* actions are the result of your thoughts and beliefs - if you don't like, then simply change - if you want something different you have to change the way you do things

* "As long as you keep on doing what you've been doing then you are gong to keep on getting what you've been getting. If you don't like what you've been getting then you've got to change what you've been doing" - Zig Ziglar

* change the way you think, talk, friends, places, reading material, food, television

* "If you want something you have never had, you have to do something you have never done." - Mike Murdock

* live by Yoda's words - "There is no try. There is only do or do not do." - trying is an excuse, a way out - give up trying

* everything you think, everything you say, and everything you do matters - it moves you one direction or the other - every word matters - every action matters

** when you stop letting things slide and start taking advantage of every moment then amazing things happen - the little stuff matters the most

* you do not get what you want until you know what you want - focus on the action steps necessary

* the life you want comes at a price - everything comes at a price and nothing is free - ie: fit and trim price is decreased calories and increased exercise - the reality of life is that you will pay a price one way or the other - one gives you what you want and the other does not and manifests itself in misery, unhealthiness, and brokenness

SLAUGHTERING THE SELF-HELP COWS
===============================

* attitude is not everything and motivation does not work

* attitude is important but alone it will not change things - effort changes things, thoughts change things, words change things - it's what you think about, talk about, and do something about that comes about.

* negative attitude is ok - it's what kicks us in the pants - sometimes you must get upset to change - it's a catalyst - in other words sometimes in order to make positive changes in your life, you first have to get negative about your life

* glass half full or half empty - who cares - question is does the amount in the glass quench your thirst - attitude won't quench your thirst

* attitude should be combined with work - the effort to serve others well - service is rewarded - effective service to others requires work which should be performed with a good attitude - those (including business) who understand that their purpose is service to others live lives of abundance - you are paid for:
*** the effort to help others
*** the effort to serve others
*** the effort to love others
*** the effort to bring happiness to others
*** the effort to make others' lives more secure
*** the effort to make others' lives easier

* service must be the ultimate motive of your life - success, happiness, and prosperity come from having served well

* reality is that the few do and the many watch - stop watching so much and start doing something - however you must do the right things (you know what they are and they take effort)

* the only way to become motivated is to help yourself - you will only change when ready to change, want to change, and believe you can

* motivation that makes you feel good about yourself will not change your life - must move from feeling good to believing in your abilities - that belief will propel you to amazing heights

* you have to just do it - do it, do it badly, keep doing, you will learn and get better - you will be encouraged to do more until something amazing will be accomplished - must be willing to risk failure and willing to continue doing it until it gets done

* self-image is not the key - how you feel about yourself is not that important - how you feel about what you can do is what is important

* feeling uncomfortable creates change - gets you to do - but the doing needs to be focused on what you really want - you must have a plan - a direction - plans, dreams, desires - must be articulated and focused so that energy can be directed

* you can become whatever you have the potential to become and are willing to dedicate the time and effort into becoming, and what you have the talent for - that is the truth - no more, no less

* you can have whatever you believe you deserve, and whatever you take action toward achieving, utilizing your abilities, your thoughts, and your words - you do not get what you want; you get what you take action on

* there are no problems, only opportunities - wrong - a problem is a problem - hurt is real - pain exists - these are realities and don't sugarcoat it - problems need to be called a problem and dealt with as a problem.

BELIEFS DETERMINE OUTCOME
=========================

* you always manifest your belief system - everything about you - what you do, how you talk, what you have, where you go - all shout out exactly what you believe

* your beliefs leave a trail that shows up in every area of your life

* make a list of what you believe - how does that affect the way you live, your possessions, your relationships, your success, and your happiness

ENJOYMENT FACTOR
=================

* enjoy every aspect of life - your primary responsibility is to your own happiness - you do not need to do things you do not enjoy! - the overriding principle that rules life is enjoyment and is actually based on a motive of service to others

* when you enjoy what you do you will figure out a way to be excellent at it - when you're excellent at what you do you will serve others better by doing it well - when you serve others well you will be rewarded well - therefore, your success is a result of how well you serve others

* absence of enjoyment indicates a presence of frustration and dissatisfaction which leads to negativity - which leads to reacting negatively to everyone and everything

* enjoy your employment or leave - before leaving think about what you do enjoy and focus on that aspect and see if it expands - if you do something you do not like doing for the sake of others, then you just end up resenting those people for keeping you from dong what you like

* if you don't enjoy your friends them dump them - why spend time with people you don't enjoy? - if we live for others instead of ourselves we end up unhappy and resentful

* learn to enjoy things the way they are while you are in the process of changing them - during the tough times appreciate there is a lesson to be learned and enjoy the idea you are going to be better for having survived the experience

* many times enjoyment comes not by a change in conditions but by a change in awareness - do you enjoy the simple things in life - what do you take for granted

* "We are put here on earth to fart around. Don't let anyone tell you any different" - Kurt Vonnegut - I love Kurt Vonnegut - great stuff

FITNESS, FATNESS
================

* you do not have to be sick - you can choose to be healthy - diet and exercise

* psychological and emotional problems always manifest themselves physically

* talk to a skinny doctor - stop being fat - fat is a result of both stupidity and laziness

* funny but true - author will not become fat because he's mouthed off about it too many times - just get real mouthy about something and then the sheer embarrassment of not performing to your own standard will keep you from falling below the bar you have set

* you don't have to love eating right and exercise - just hate being fat even more

* it is a choice - it is a choice to eat the way you do and to exercise

* larry's non-medical advice:
*** stop going to fast food restaurants so often
*** park far away and walk
*** go for a walk
*** smaller portions
*** when you lose a little weight - go buy an expensive outfit
*** when you lose a little weight - have your good stuff tailored (dump the crap)
*** when you lose a little weight - rub it into your fat friends (see mouthing off above)
*** simply do what you know is right
*** have a little indulgence but they should never become regular occurrences
*** find a skinny friend to eat with
*** lack of opportunity - do not have things available that are bad
*** drink lots of water
*** do something
*** goto the gym and lift weights - muscle burns calories faster than fat

EVERYONE SCREWS UP
==================

* make a mistake - do not waste time beating yourself up - realize you made certain choices to this point - examine those choices and make new ones in order to be somewhere else

* big deal - know that you can say to yourself big deal
* admit it - take responsibility
* fix it - do/action
* move on - don't whine

RELIGION
========

* causes you to love people more

* causes you to be compelled to give money to take care of people who need help

* causes you to give up prejudice and brings inner peace

* causes you to care more about the world and those who live in it

* simply love one another

* presence of good and the action of love

GET SMARTER
===========

* not only do you need to own the book - you need to read the book

* how to read a book
*** buy it
*** mark it up
*** tell others about it (reinforces your learning)
*** don't loan it to others - buy them a copy
*** buy lots of books
*** have a variety to meet the time, place, and mood
*** if it's bad - stop reading it and find another
*** read for different reasons - learn, spirit, entertainment

* read philosophy, spirituality, biographies and some "junk" for fun - mysteries, how-to, horror, humor, etc.

* audio learning for those that spend a great deal of time travelling

* video learning - watch great speakers

* seminars - go hear speakers who deliver high-quality, content-rich material

* smart people - ask people who know what you want to know - shut up and listen - smart people talk about things instead of people

* the more you know the better you are prepared in the decision making process

STRESS
======

* comes from knowing what is right and doing what is wrong (or nothing at all)

* stress from people - the person is not the cause of the stress - it is caused by you not doing what you know is the right thing to do - lack of correct action is the culprit

* stress from weight - stop eating like a pig - start exercising - stress comes not from weight but knowing you should be doing something about it

* make a list - determine the remedy (may be painful, expensive, embarrassing, and not easy) - and do it - it will always be better to take action than to live with the stress

LEARN TO RELAX
===============

* the ability to relax must be learned

* key ingredient is to really enjoy where you live

* create an environment you can enjoy and relax in - do your best to make a personal space you can love

* find something you enjoy as an outlet - relaxes the mind and feeds the soul (example is painting which works for me and I've been out of sync with my miniature painting)

* schedule your relaxation or it won't happen - be firm to your commitment

MONEY RULES
===========

* having money is a lot better than not having money

* your finances do not get right until your life gets right

* you earn money - work that provides the most service to others makes you rich - focus on the service you provide and how you can continually add more value to everyone you work with - do more than you are paid to do

* get the right attitude about money - prosperity consciousness is believing the universe provides more than enough for you and everyone else - pay your bills with a smile (you created them) - pay your taxes enthusiastically (you benefited even if you don't agree with all the programs) - have fun spending money (else there's no purpose in having it) - give away some of your money on a regular basis

* "All the money you are ever going to have is currently in the hands of someone else." - Earl Nightingale

* carry cash - gives confidence - gives freedom - it is a reminder of what you did

* is it enough?? - have you served your best - have you given all you got - if yes, then you have received the right amount

RELATIONSHIPS
=============

* unlike other resources explaining men/women are from different planets, Winget believes that it is the commonality that men/women share which will bring them closer together

* we need to be discovering and celebrating what we have in common in order to have more harmonious relationships

* relationships renew themselves constantly - don't focus on future or past, only the now - energy is put into enjoying every second of what they have at that moment - be totally committed - don't take the other for granted

* do what it takes to be your best for your spouse - not out of obligation, but out of desire

* constantly tend to the relationship in order to leave it better than when you found it - put in the effort to keep the spark going

* marriage is about spending time - romance has to do with the quality of the relationship

* relationships are two halves who meet to enjoy a greater wholeness - however, you must maintain individuality - develop yourself as an individual as the better you are the better the whole - give each other space - allow uniqueness in terms of tastes, space, interests and friends

* "the more space you allow and encourage within a relationship, the more the relationship will flourish" - Dr. Wayne Dyer

* individuality does not mean non-compatibility (see first bullet) - you must have things in common - lots of things in common

* the differences between between individuality and compatibility make it interesting - discover the differences between each other and enjoy them - make them a source of humor - it's what makes life fun

* take personal responsibility for your own happiness - need your own approval and not other people's approval - personal satisfaction comes when you rise above the need for approval from others

* we are responsible to give others our best, every time, without compromise - however, we are not responsible for others' response or reaction to our best

* a strong relationship does not need one to control the others time, activities, or thoughts - trust them - celebrate their individuality

* closeness should be out of want and not need - much better to want to be with someone rather than need - need is based in lack and fear - want is based in desire - we all want to be wanted, but few really want to be needed

* confidence from knowing we are okay by ourselves will draw others to us - independence is attractive

* the great dichotomy - you do not need others to be happy and yet you cannot be happy without others

* on forgiveness - forgiveness is hard - two thoughts (1) there is no way to be happy in a relationship when you contain anger, resentment, and unforgiveness - (2) you are responsible for your happiness and no one else can do it for you - therefore, you do not forgive others because they deserve it, you forgive others because you deserve it - easy, no - necessary, absolutely

* on jealousy - based in fear, a dangerous emotion that grows from a lack of self-esteem and a lack of trust - destructive in every way - detroys relationships and sanity - give it up

* all relationships rely on trust - once broken the relationship changes forever and pays a price - think about the consequences and know there is no going back

* on communication - go as far as it takes (no half way or even all the way) to establish open and honest communication - talk and keep talking - even if painful - silence is rarely a friend - silence leads to distance

* on disagreements - healthy and natural - should be passionate - should be open and honest - bottling up anger turns into resentment - get it said and then make up - make the argument about some "thing" and not about some "one" - personal attacks only hurt - make the argument about the action and not about the who

* on romance - learn to be romantic - pay attention to their desires and do something about it - touch and physical contact is important - affection that comes from lack of obligation is the most meaningful

* on friendship - exists entirely because you want it to - it's always a choice - friends accept you and let you be the way you are - a friend will let you do a lot of dumb things but they will not let you whine - instead they will kick your butt and force you to take responsibility

KIDS = PAIN IN BUTT
====================

* kids are dirty, messy, and expensive - yet they are the neatest thing ever to happen - they are your responsibility

* there are no bad kids - only bad parents

* kids push their limits - they are supposed to push their limits as part of growing - it is the responsibility of parent to set the limits and discipline accordingly

* you must love your kids enough to discipline them - be consistent and make the punishment fit the crime - do it privately

* make your word golden - a promise is a promise regardless of what the promise is about

* your kids are a reflection of what you have taught them - your actions speak louder than words

* raising kids is not easy - it's the hardest job, the most awesome responsibility

* sometimes you need to know when to let it go - some things come and go - keep your mouth shut about it and let it slide - unless it is life threatening (then get very involved) - pick your battles - kids eventually become human

* stay involved - know what's going on in your kids lives - know their interests - know their friends - have the kids at your house

* give them privacy, but know what's going on - establish a relationship based on communication, trust, and respect

* be cool, but not too cool - do not be their best friend - there is a line between being their best friend and a parent that should not be crossed

* do not expect perfection - kids are not perfect - (there's an old saying - it's better to build a boy, then to mend a man)

* teenagers are pretty much disgusting creatures - there is no known cure except for time - just keep loving them

SEX
====

* God gave sex to enjoy - it is natural - not wrong, very right

* sexual repression not sexual expression is the problem - causes crimes, guilt, and ruined relationships

* guilt producing teachings (typically by fundamentalists) creates a society of sexually repressed people who do not understand how to have sex without guilt

LOVE IS THE KEY
================

* love is the key to success, happiness, and prosperity - what makes you a great leader, salesperson, delivers amazing customer service - makes you the kind of person others want to be with and share their money with

* when you love what you do you will become excellent at it - loving what you do is the key to your personal compensation and your ultimate prosperity

* love the company you work for as well as the customer who ultimately receives your service

* love others and you will serve them in the ultimate way - they will want to do the same for you

* you cannot be good for anyone else until you love yourself

* love is key to business success - love your customers and you will serve them well, in return the will love doing business with you - love your people and they will follow you better than any other tool or tactic

* love the experience of enhancing the lives of others by investing in the lives of others with your cash - loving to help others through various charitable organizations will be one of the major factors in gauranteeing continual financial success

* extend love to others and accept the love that comes in return - your happiness will be in direct proportion to the love you give

CRITICISM HAPPENS
==================

* criticism becomes dangerous when it is directed about who someone is, not what they do

* critique the action, not the person

* do not discount a person's value because you do not like how they look or dress

* you will be criticized for daring to make life happen - do not bother defending your success - you served others and in return are the rewards for that service - do not be embarrassed by it - do not apologize for it - rise above the approval of others and simply be thankful

* cynicism is different than criticism and can be a good thing - beware of those who argue the loudest - truth does not care if it is questioned as it can always stand up to questioning - false fights back, retaliates, and attacks

MORE YOU GIVE, MORE YOU GET
============================

* get more by giving more - you get by giving - the more you give of what you have, the more you actually get

* laws of physics - nature abhors a vacuum - it is only when you give things away that you make room for more

* give to an organization that can really use it

* giving to those who actually need what you are getting rid of will help create the abundance necessary to replace it

ON WORK - EMPLOYMENT
=====================

* Three reasons to go to work every single day:

*** to keep existing customers (primary reason, repeat business, referrals, will help you survive the toughest of times and prosper during the best of times)

*** to create new customers (someone else did not treat them right)

*** to make yourself and your organization the kind that other people want to do business with (customers do business with employees - values and personality of any organization is a reflection of the individual employee and not what the banner says on the wall)

* when you work, work - when you play, play - do not mix the two - it screws up the work and the play

* build a reputation of getting things done - do the stuff that's not your favorite first - stay focused - figure out the most important thing each day and get it done - doing the things that really matter produce the results that really matter

* do not make it your goal to be the cheapest - make your goal to be the best - when you give up money you give up quality, service, integrity

* do not judge what others want by what you are willing to accept - error on the side of more - give them more than what they expect

* do what you say you are going to do, when you said you were going to do it, in the way you said you were going to do it - no excuses

THERE IS JUST NO TIME
======================

* time management is a joke - it cannot be managed - the problem is not lack of time but is poorly defined priorities - focus on the priorities

* figure out what is important to you and establish those things as priorities - "other things" will creep into your life because you do not have clearly defined priorities

* there will never be time to do everything, however there is plenty of time to do the things you really want once your priorities are defined

BALANCE
========

* work hard, but not so hard you lose your life

* play hard, but not so hard you lose your livelihood

* balance is the key - each is the spoke of a wheel which only provides a smooth ride when all parts are equal (no flat spots)

* do not completely abandon any one area in pursuit of another

HOPE
====

* give up hope - it's never done a bit of good as it is grounded in uncertainty

* have faith - faith is grounded in absolute certainty - faith is knowing

* give up hope, have faith, and then step out boldly

GUILT
=====

* regret - means you are sorry and you don't want to repeat the same action again

* guilt - is the emotion that immobilizes - serves no purpose - will not help you in any way

* make restitution - apologize - forgive yourself - learn from experience - act differently

WORRY
=====

* why worry about what you can't control - if you can control then worry is a waste of energy

* past is something you cannot control - don't worry about it

* future is something you can control - do not worry - do something about it instead

* present is in your control - live it the way you want to live it and know you should live it

* worry is a misuse of your imaginatiion - worry attracts to you exactly what you do not want to happen

* focus on what you want to happen - this will draw you to what you really want - you have every condition in your life because that was your focus - change your focus and you will change your results

SELFISHNESS
===========

* it's a good thing - you have to be selfish with yourself - you cannot be good for others unless you are first good to yourself

* be selfish with your time - learn to say no to things that hold no interest so as to not keep yourself from saying yes to those things you really want to do in life

* help those that sincerely want to be helped - they will appreciate it and actually use the help given them

DEAL IS A DEAL
===============

* deal is a deal, suck it up and keep your word

* make a better deal next time - be smarter next time - but this time live up to your commitment

* if you make a promise then keep it; mess up then admit it; received payment for a service then provide it exactly as you said you would

THE BOTTOM LINE
================

* am I happy? healthy? serving? loving? learning? having fun? doing something I enjoy? prosperous?

* remember...

- a rollercoaster has it's ups and downs but is never dull - it is always exciting and you can't wait to get on and do it again!

- A merry-go-round has sweet music and goes in circles - it's nice and safe and pleasant

More risk in the rollercoaster but you will know that you have lived