WEBVTT 1 00:00:00.000 --> 00:00:10.040 Today, we're going to look at a way to measure success of our business, of our organization. 2 00:00:10.040 --> 00:00:14.780 Here at the Edge, we've been learning that we're becoming a team of leaders, not just 3 00:00:14.780 --> 00:00:16.640 a team with a leader. 4 00:00:16.640 --> 00:00:21.720 That means every single person is leading something in their organization. 5 00:00:21.720 --> 00:00:25.120 At a minimum, we're all leading our contribution. 6 00:00:25.120 --> 00:00:27.160 Some are leading other team members. 7 00:00:27.160 --> 00:00:29.240 Some are leading vendors or customers. 8 00:00:29.240 --> 00:00:31.360 But we're all leading something. 9 00:00:31.360 --> 00:00:36.840 And so we want to equip every single person to know if we're being successful. 10 00:00:36.840 --> 00:00:41.580 So imagine you went to a ball game, perhaps you like football as I do, and you're sitting 11 00:00:41.580 --> 00:00:44.080 there with your friend, but there is no scoreboard. 12 00:00:44.080 --> 00:00:46.700 So you turn to your friend and say, well, are we winning? 13 00:00:46.700 --> 00:00:47.840 And they go, well, I don't know. 14 00:00:47.840 --> 00:00:52.140 We seem to be spending more time on that side of the field than I mean, I think so. 15 00:00:52.140 --> 00:00:53.800 And I go, well, when does this end? 16 00:00:53.800 --> 00:00:54.800 I don't know. 17 00:00:54.800 --> 00:00:58.440 Maybe when it gets dark or cold or we run out of hot dogs, you know. 18 00:00:58.640 --> 00:01:05.560 So as ridiculous as it would be to be in a football game where you don't know the score, 19 00:01:05.560 --> 00:01:09.120 many people work in a business where they don't know the score. 20 00:01:09.120 --> 00:01:17.100 So we want to introduce the idea of the triple bottom line as a means of measuring success. 21 00:01:17.100 --> 00:01:23.000 So what if we created this type of scoreboard so we can all see how are we doing? 22 00:01:23.000 --> 00:01:25.640 So let me share a couple of key ideas with you. 23 00:01:25.640 --> 00:01:29.400 So the triple bottom line then is how we keep score. 24 00:01:29.400 --> 00:01:30.600 What does that mean? 25 00:01:30.600 --> 00:01:32.160 It means three things. 26 00:01:32.160 --> 00:01:34.120 How much money do we make? 27 00:01:34.120 --> 00:01:36.120 How many people do we reach? 28 00:01:36.120 --> 00:01:38.660 And how alive is the team doing? 29 00:01:38.660 --> 00:01:43.680 Now if you've only got two of those three functional or doing well or know what the 30 00:01:43.680 --> 00:01:46.800 score is, you don't really know the score. 31 00:01:46.800 --> 00:01:51.880 So we're going to talk about how would we measure these three elements. 32 00:01:52.080 --> 00:01:56.520 When it comes to the money side, I think most people are a little intimidated because they 33 00:01:56.520 --> 00:01:59.240 don't know how to read financial statements. 34 00:01:59.240 --> 00:02:01.440 So we're going to make that super simple. 35 00:02:01.440 --> 00:02:06.560 Now for some of you, you may need to watch this video a couple of times until you feel 36 00:02:06.560 --> 00:02:08.160 like you've really got it. 37 00:02:08.160 --> 00:02:11.240 But we're trying to make this as simple as possible. 38 00:02:11.240 --> 00:02:17.000 So regardless of whether you have a financial background or not, you can understand how 39 00:02:17.000 --> 00:02:18.760 much money did we make? 40 00:02:18.760 --> 00:02:20.800 Are we winning on the money front? 41 00:02:20.800 --> 00:02:22.080 So let's just walk through that. 42 00:02:22.080 --> 00:02:26.100 This is a very easy way to understand financial statements. 43 00:02:26.100 --> 00:02:28.760 We call it the rule of three. 44 00:02:28.760 --> 00:02:33.920 Now the rule of three means we're going to break numbers into three groups of three. 45 00:02:33.920 --> 00:02:34.920 Let's start. 46 00:02:34.920 --> 00:02:37.200 Each of these groups are going to tell us one of three things. 47 00:02:37.200 --> 00:02:39.320 They're going to tell us how profitable are we? 48 00:02:39.320 --> 00:02:43.520 How profitable are our goods and services? 49 00:02:43.520 --> 00:02:46.080 The second one is going to tell us how efficient we are. 50 00:02:46.080 --> 00:02:48.680 And the third one is going to tell us about our environment. 51 00:02:48.680 --> 00:02:54.200 So very briefly, it means the first one we're going to say, hey, we sell pencils. 52 00:02:54.200 --> 00:02:55.280 They cost a dollar. 53 00:02:55.280 --> 00:02:58.200 We sell them for $4. 54 00:02:58.200 --> 00:03:02.320 So if we take four minus one, that's $3 of profit. 55 00:03:02.320 --> 00:03:04.480 We have 75% profitable. 56 00:03:04.480 --> 00:03:07.640 So we want to know, are our goods and services profitable? 57 00:03:07.640 --> 00:03:14.600 Now from that $75 of profit, we have to pay all our fixed expenses, salaries, the rent, 58 00:03:14.600 --> 00:03:15.600 etc. 59 00:03:15.600 --> 00:03:16.880 We call those fixed expenses. 60 00:03:17.080 --> 00:03:22.920 Now, once we take up gross profit, subtract our expenses, what's left is telling us how 61 00:03:22.920 --> 00:03:23.920 efficient we are. 62 00:03:23.920 --> 00:03:26.720 We'll get into this in a little more detail. 63 00:03:26.720 --> 00:03:30.020 And then whatever's left, we have to pay taxes and so on. 64 00:03:30.020 --> 00:03:33.360 And that's got to do with the environment, you know, what state you live in, what the 65 00:03:33.360 --> 00:03:36.440 tax situation is, what the corporate rate is. 66 00:03:36.440 --> 00:03:39.800 And then what's finally left is our final net profit. 67 00:03:39.800 --> 00:03:40.880 So let's get into that. 68 00:03:40.880 --> 00:03:43.720 And let me break that up for you in a couple of things. 69 00:03:43.720 --> 00:03:48.560 Maybe you've seen something like this, maybe on the Internet, or this is Apple's income 70 00:03:48.560 --> 00:03:49.760 statement. 71 00:03:49.760 --> 00:03:55.320 And so, you know, it's a difficult thing to understand if you don't know how to look at 72 00:03:55.320 --> 00:03:56.320 it. 73 00:03:56.320 --> 00:03:59.040 So why don't we take that and make that a whole lot simpler? 74 00:03:59.040 --> 00:04:03.260 So let's say, for instance, let's go with the first one, the profitable. 75 00:04:03.260 --> 00:04:10.440 So the first group of three is we take our revenue and we subtract the cost of goods 76 00:04:10.440 --> 00:04:11.920 sold. 77 00:04:11.920 --> 00:04:13.840 And that will leave us our gross profit. 78 00:04:13.840 --> 00:04:14.840 What do we mean by that? 79 00:04:14.840 --> 00:04:17.640 So the revenue is the sales coming in. 80 00:04:17.640 --> 00:04:22.480 In my example earlier on, we sold that pencil for four dollars. 81 00:04:22.480 --> 00:04:24.880 And what did it cost us to make that pencil? 82 00:04:24.880 --> 00:04:25.880 One dollar. 83 00:04:25.880 --> 00:04:28.680 So our gross profit would be three dollars. 84 00:04:28.680 --> 00:04:31.520 In that particular case, that would be seventy five percent profit. 85 00:04:31.520 --> 00:04:33.800 Now, of course, we didn't just sell one pencil. 86 00:04:33.800 --> 00:04:36.120 We sold however many pencils for the month. 87 00:04:36.120 --> 00:04:39.080 So let's say our revenue was one hundred thousand dollars. 88 00:04:39.080 --> 00:04:42.560 And we had to go and pay the manufacturer twenty thousand dollars. 89 00:04:42.560 --> 00:04:44.000 That's what it cost us. 90 00:04:44.000 --> 00:04:49.160 And finally, we had a gross profit of eighty thousand that left us an eighty percent margin. 91 00:04:49.160 --> 00:04:54.080 We want our business to be forty percent or better or it gets very difficult to support 92 00:04:54.080 --> 00:04:56.080 all the expenses. 93 00:04:56.080 --> 00:05:00.080 So what's the difference then between cost of goods and expenses? 94 00:05:00.000 --> 00:05:03.960 Expenses or cost of goods are what we call variable costs. 95 00:05:03.960 --> 00:05:09.720 For every pencil I sell, I have to pay the manufacturer one dollar. 96 00:05:09.720 --> 00:05:14.320 Whereas our general expenses like rent and payroll, we have to pay that regardless if 97 00:05:14.320 --> 00:05:15.640 we sell anything or not. 98 00:05:15.640 --> 00:05:20.840 If we sell little or we sell a lot, we still have to pay fixed expenses. 99 00:05:20.840 --> 00:05:24.440 So what we're talking about here is the variable expenses. 100 00:05:24.440 --> 00:05:27.760 How many one dollars do we have to pay for the pencil? 101 00:05:27.760 --> 00:05:34.120 So to make that really simple, we sold $100,000 of pencils, we had to pay the manufacturer 102 00:05:34.120 --> 00:05:35.120 $20,000. 103 00:05:35.120 --> 00:05:37.980 Our gross profit is $80,000. 104 00:05:37.980 --> 00:05:42.060 This tells us how profitable our pencil business is. 105 00:05:42.060 --> 00:05:45.040 We have an 80% gross margin. 106 00:05:45.040 --> 00:05:48.740 Now that's helpful because that tells us we have a very profitable business. 107 00:05:48.740 --> 00:05:54.340 Now if that percentage drops down over time because it gets more expensive to manufacture 108 00:05:54.340 --> 00:05:58.700 or now there's more competition and we can't sell them for $4 anymore, now we have to 109 00:05:58.700 --> 00:06:06.060 sell them for $3, then of course our percentage is going to drop down as our profit decreases. 110 00:06:06.060 --> 00:06:11.500 And that's why the ability to set our prices and control our prices talks a lot about the 111 00:06:11.500 --> 00:06:12.900 strength of our business. 112 00:06:12.900 --> 00:06:15.220 Okay, let's go to the next group of three. 113 00:06:15.220 --> 00:06:20.020 The second group of three is when we take that final gross profit that was in the previous 114 00:06:20.020 --> 00:06:21.020 group. 115 00:06:21.020 --> 00:06:23.380 So that was $80,000. 116 00:06:23.420 --> 00:06:24.780 We subtract our expenses. 117 00:06:24.780 --> 00:06:28.020 Now remember our expenses here are all our fixed costs. 118 00:06:28.020 --> 00:06:31.860 We have to pay payroll, rent, the phone, whatever it is. 119 00:06:31.860 --> 00:06:36.440 These are things we have to pay whether we sell anything or not. 120 00:06:36.440 --> 00:06:40.020 So let's say in this case the expenses are $70,000. 121 00:06:40.020 --> 00:06:44.740 That means this month we made a net profit of $10,000. 122 00:06:44.740 --> 00:06:51.940 So that means of the original $100,000 we sold, we've only got $10,000 net profit. 123 00:06:51.940 --> 00:06:55.440 So that's a 10% profitability. 124 00:06:55.440 --> 00:07:00.620 Now what this tells us, this group of three tells us is how efficient are we? 125 00:07:00.620 --> 00:07:05.420 In other words, we've made $80,000, how much of that $80,000 did we keep? 126 00:07:05.420 --> 00:07:06.420 This tells us our efficiency. 127 00:07:06.420 --> 00:07:11.740 If we've got too many expenses, if our rent is too high, we have too many people working 128 00:07:11.740 --> 00:07:17.120 for the organization, then obviously the net profit is going to get smaller. 129 00:07:17.120 --> 00:07:22.520 So if we get really efficient what we do, and part of the concept of creating a team 130 00:07:22.520 --> 00:07:29.360 of leaders is to become a highly innovative and a highly productive team so that we can 131 00:07:29.360 --> 00:07:31.120 have a better net profit. 132 00:07:31.120 --> 00:07:36.360 And when the company does better, not only do people have jobs, but there's much better 133 00:07:36.360 --> 00:07:38.320 opportunity for bonuses and so on. 134 00:07:38.320 --> 00:07:46.160 So before you think, oh this is a great business, this person already made $10,000 not so quick. 135 00:07:46.200 --> 00:07:48.520 Because we have to consider the environment. 136 00:07:48.520 --> 00:07:51.520 Maybe there's state taxes, federal taxes, or whatever it is. 137 00:07:51.520 --> 00:07:56.440 So that net profit has to have depreciation and other expenses. 138 00:07:56.440 --> 00:08:01.800 So let's say that $7,000, so the net operating profit here is $3,000. 139 00:08:01.800 --> 00:08:08.000 In other words, of the original $100,000, only $3,000 is left. 140 00:08:08.000 --> 00:08:15.000 So this is why taxes play such a massive role, because now the company can only share that 141 00:08:15.120 --> 00:08:20.520 $3,000 to its shareholders and bonuses to its employees. 142 00:08:20.520 --> 00:08:23.800 So now we've seen the three groups of three. 143 00:08:23.800 --> 00:08:30.800 The first one told us, again, how profitable is our product or services. 144 00:08:31.200 --> 00:08:34.880 The second one told us how efficient, how much of that money do we keep. 145 00:08:34.880 --> 00:08:39.919 And the last one is based on our environment, which country we do business in, which state, 146 00:08:39.919 --> 00:08:40.559 etc. 147 00:08:40.799 --> 00:08:47.920 And that's why some states attract businesses, because they're trying to become more profitable. 148 00:08:47.920 --> 00:08:49.560 So let's put it all together. 149 00:08:49.560 --> 00:08:51.800 So now we have an income statement. 150 00:08:51.800 --> 00:08:57.680 We have revenue minus the cost of goods sold, leads us with our net operating profit. 151 00:08:57.680 --> 00:09:02.720 And then we go all the way down to expenses and finally our final profit. 152 00:09:02.720 --> 00:09:05.440 So now you know how to group them in groups of three. 153 00:09:05.440 --> 00:09:09.800 You take the first three together, the $100, the $20, and the $80. 154 00:09:09.800 --> 00:09:11.280 That tells you how profitable you are. 155 00:09:11.280 --> 00:09:15.720 Then you take the next group, the $80, subtract the expenses, and you have profit. 156 00:09:15.720 --> 00:09:17.920 That tells you how efficient you are. 157 00:09:17.920 --> 00:09:19.760 And then, of course, you pay your taxes. 158 00:09:19.760 --> 00:09:21.720 And that tells you about your environment. 159 00:09:21.720 --> 00:09:27.720 So I hope that was really helpful to understand the basics of being able to read a financial 160 00:09:27.720 --> 00:09:29.080 statement. 161 00:09:29.080 --> 00:09:32.520 Now we've talked about the first three groups, again. 162 00:09:32.520 --> 00:09:35.800 And then we talked about how it's the second three groups. 163 00:09:35.800 --> 00:09:36.800 And there we have... 164 00:09:37.480 --> 00:09:41.640 And of course, the final one is just to add in the environment. 165 00:09:41.640 --> 00:09:45.760 So let's take a second and talk about then this top or bottom line. 166 00:09:45.760 --> 00:09:47.120 We've talked about money. 167 00:09:47.120 --> 00:09:49.320 How do we measure impact? 168 00:09:49.320 --> 00:09:52.800 What do we mean by how many people did we reach? 169 00:09:52.800 --> 00:09:56.640 You know, if you're a non-profit organization, that might be easier to understand. 170 00:09:56.640 --> 00:10:00.080 Maybe you're feeding the poor or you're, you know, involved. 171 00:10:00.000 --> 00:10:04.280 in some sort of social justice mission, 172 00:10:04.280 --> 00:10:05.360 that's easier to measure. 173 00:10:05.360 --> 00:10:07.720 When you're a for-profit business, 174 00:10:07.720 --> 00:10:11.100 the question isn't how many customers did we sell? 175 00:10:11.100 --> 00:10:12.680 Maybe that's a starting point, 176 00:10:12.680 --> 00:10:15.240 but really, what value did we bring? 177 00:10:15.240 --> 00:10:17.680 So here's some key questions we can ask 178 00:10:17.680 --> 00:10:21.180 to see what are we offering? 179 00:10:21.180 --> 00:10:23.480 Does that make sense? 180 00:10:23.480 --> 00:10:27.400 Do we, are we bringing real value? 181 00:10:27.400 --> 00:10:30.600 So what, you know, is what we're offering 182 00:10:30.600 --> 00:10:33.880 bringing real value to our customers, right? 183 00:10:33.880 --> 00:10:37.760 How can they experience goodness from our team? 184 00:10:37.760 --> 00:10:39.120 What do I mean by that? 185 00:10:39.120 --> 00:10:40.480 It's the way we treat them. 186 00:10:40.480 --> 00:10:42.500 It's in the small things, the politeness, 187 00:10:42.500 --> 00:10:45.400 the way we show, we go the extra mile. 188 00:10:45.400 --> 00:10:48.520 Do they experience a goodness in our customer service 189 00:10:48.520 --> 00:10:51.600 or from our salespeople or from the, you know, 190 00:10:51.600 --> 00:10:52.800 in the interactions? 191 00:10:52.800 --> 00:10:56.280 Do vendors feel like when we interact with your team, 192 00:10:56.280 --> 00:10:59.320 there's a, we feel like we received something 193 00:10:59.320 --> 00:11:01.440 more than just a transaction. 194 00:11:01.440 --> 00:11:06.240 And so, you know, how we provide our products and services 195 00:11:06.240 --> 00:11:09.400 can have our customers or our vendors 196 00:11:09.400 --> 00:11:12.640 feel a certain goodness they're experiencing from the team. 197 00:11:12.640 --> 00:11:15.600 Now, everybody knows we all wanna do business 198 00:11:15.600 --> 00:11:17.520 with people who treat us well. 199 00:11:17.520 --> 00:11:19.520 You know, we go, those are good people. 200 00:11:19.520 --> 00:11:21.080 I wanna do business with them. 201 00:11:21.080 --> 00:11:24.640 This has a huge impact on your business. 202 00:11:24.720 --> 00:11:27.400 And so it's how, you know, how well do we listen 203 00:11:27.400 --> 00:11:29.440 to improve our products and services? 204 00:11:29.440 --> 00:11:32.900 Can we bring more value to our customers' lives? 205 00:11:32.900 --> 00:11:34.080 Now, you might be thinking, 206 00:11:34.080 --> 00:11:36.000 well, that's like product development. 207 00:11:36.000 --> 00:11:40.360 Actually, what I'm speaking about here is the small things, 208 00:11:40.360 --> 00:11:42.440 the tone of your voice, how you treat people. 209 00:11:42.440 --> 00:11:43.280 Do you follow them? 210 00:11:43.280 --> 00:11:45.080 Do you arrive on time for meetings? 211 00:11:45.080 --> 00:11:47.240 Are you five, 10 minutes late? 212 00:11:47.240 --> 00:11:50.880 If you met with our team on having a Zoom call 213 00:11:50.880 --> 00:11:53.560 and you got on, you know, three, four minutes early, 214 00:11:53.560 --> 00:11:55.720 our whole team will be sitting there waiting. 215 00:11:55.720 --> 00:11:58.520 And the reason is, is we want to make, 216 00:11:58.520 --> 00:12:02.280 show a level of respect to people's time. 217 00:12:02.280 --> 00:12:04.100 Now, of course, there are very rare exceptions 218 00:12:04.100 --> 00:12:05.480 in which that's not as possible, 219 00:12:05.480 --> 00:12:09.160 but in general, that is the culture of our organization 220 00:12:09.160 --> 00:12:12.360 because we're sending a message, you're valuable, 221 00:12:12.360 --> 00:12:15.100 we appreciate you, and we respect your time. 222 00:12:15.960 --> 00:12:19.920 So this is a very, very simple idea of thinking about 223 00:12:19.920 --> 00:12:22.920 how do we bring value, not just to our customers, 224 00:12:22.920 --> 00:12:24.760 but perhaps to our community. 225 00:12:24.760 --> 00:12:26.360 You know, the city that we live in, 226 00:12:26.360 --> 00:12:28.920 is there some other goodness we can bring? 227 00:12:28.920 --> 00:12:32.640 So we're really measuring, a way to think of it is this, 228 00:12:32.640 --> 00:12:35.640 you know, a great leader is teaching, 229 00:12:35.640 --> 00:12:37.600 is bringing good, being good to their team. 230 00:12:37.600 --> 00:12:39.920 The part, you're on this edge training, 231 00:12:39.920 --> 00:12:42.960 that's your leader who has invested in you 232 00:12:42.960 --> 00:12:46.960 so that you can learn all the best leadership practices 233 00:12:46.960 --> 00:12:50.040 from around the world, because if you ever leave here, 234 00:12:50.040 --> 00:12:52.280 you're gonna be the smartest person in the room. 235 00:12:52.280 --> 00:12:55.080 Now, that's just being good to you, right? 236 00:12:55.080 --> 00:12:57.640 That's an investment in you, 237 00:12:57.640 --> 00:13:00.360 regardless of whether you stay or go. 238 00:13:00.360 --> 00:13:02.400 So that's being good to your people. 239 00:13:02.400 --> 00:13:05.320 Then we're teaching people to be good at what they do, 240 00:13:05.320 --> 00:13:08.000 and that's what the rest of the Edge program is about. 241 00:13:08.000 --> 00:13:10.000 And then finally, as a company, 242 00:13:10.000 --> 00:13:13.520 how are we gonna show goodness to our customers? 243 00:13:13.520 --> 00:13:15.160 So it's all about goodness. 244 00:13:15.160 --> 00:13:17.800 So again, how alive is the team? 245 00:13:17.800 --> 00:13:19.680 We measure this by shiny eyes. 246 00:13:19.680 --> 00:13:21.680 You can walk around the organization, 247 00:13:22.280 --> 00:13:24.560 you know when the light goes on, they got shiny eyes, 248 00:13:24.560 --> 00:13:29.160 I love what I do, I can't believe I get paid to do this. 249 00:13:29.160 --> 00:13:32.800 We want every single person in our organization 250 00:13:32.800 --> 00:13:34.400 to feel that. 251 00:13:34.400 --> 00:13:37.560 We do not want them to just be mailing it in, 252 00:13:37.560 --> 00:13:40.040 just arrive, get the paycheck, leave. 253 00:13:40.040 --> 00:13:41.680 People like that, you know, 254 00:13:41.680 --> 00:13:46.000 do not survive in this type of a culture. 255 00:13:46.000 --> 00:13:47.480 So when we're thinking about this, 256 00:13:47.480 --> 00:13:50.880 the question here is how alive is the team 257 00:13:50.920 --> 00:13:52.960 that we lead? 258 00:13:52.960 --> 00:13:54.880 Look, life is precious, 259 00:13:54.880 --> 00:13:57.680 and studies show that over 60% of Americans 260 00:13:57.680 --> 00:14:00.480 hate or dislike their job. 261 00:14:00.480 --> 00:14:02.360 What a waste of human life. 262 00:14:02.360 --> 00:14:05.560 We have an amazing opportunity to change that. 263 00:14:05.560 --> 00:14:08.720 And so I love the term that Ben Zander, 264 00:14:08.720 --> 00:14:10.920 in his book, The Art of Possibility, 265 00:14:10.920 --> 00:14:14.400 speaks about this concept of shiny eyes. 266 00:14:14.400 --> 00:14:18.000 He talks about a way for a leader to measure 267 00:14:18.000 --> 00:14:21.400 how well they're doing as a leader. 268 00:14:21.400 --> 00:14:25.040 So it's a beautiful definition for success. 269 00:14:25.040 --> 00:14:26.760 You know, it's really simple, 270 00:14:26.760 --> 00:14:29.360 and I love looking around our team, 271 00:14:29.360 --> 00:14:31.440 and every now and again you notice one of the team members 272 00:14:31.440 --> 00:14:32.760 doesn't quite have shiny eyes, 273 00:14:32.760 --> 00:14:37.000 and it's almost always something we can do to address that. 274 00:14:37.000 --> 00:14:39.080 You know, leaders often push back on this 275 00:14:39.080 --> 00:14:44.080 as a primary means of measurement of how's the team doing. 276 00:14:44.680 --> 00:14:46.200 But if you think about it long enough, 277 00:14:46.200 --> 00:14:49.880 you can see that you can take a group of ordinary people 278 00:14:49.880 --> 00:14:51.840 who become fully alive, 279 00:14:51.840 --> 00:14:55.000 and they can achieve extraordinary results. 280 00:14:55.000 --> 00:14:58.520 I mean, this is the genius, right, of a great leader. 281 00:15:00.000 --> 00:15:05.120 We expect that we have to hire superstars who became superstars somewhere else. 282 00:15:05.120 --> 00:15:09.080 What if we create the superstars right here in our own team? 283 00:15:09.080 --> 00:15:14.720 And what if you, as one of the members of this team, is a superstar in the making? 284 00:15:14.720 --> 00:15:19.800 You know, one of the great questions, to me, the first question of a great leader is, what 285 00:15:19.800 --> 00:15:24.180 am I being that these people do not have shiny eyes? 286 00:15:24.180 --> 00:15:27.940 Not why these people don't have shiny eyes, why don't they listen to what I say? 287 00:15:27.940 --> 00:15:30.900 But better is, what environment have I created? 288 00:15:30.900 --> 00:15:34.660 How have I made them, what's the context I've created? 289 00:15:34.660 --> 00:15:37.240 And so to me, that is a fantastic way. 290 00:15:37.240 --> 00:15:42.660 So let's wrap this up with the old way of measuring success versus the new way. 291 00:15:42.660 --> 00:15:47.500 The old way is, hey, this is my standard, this is what I want, I expect you all to live 292 00:15:47.500 --> 00:15:48.500 up to it. 293 00:15:48.500 --> 00:15:53.660 Under this model, you know, people are hitting that standard in various degrees. 294 00:15:53.660 --> 00:15:56.860 But the bottom line is, there are always less than. 295 00:15:56.860 --> 00:16:00.660 There's always just a degree of how much they're missing it by. 296 00:16:00.660 --> 00:16:04.700 And you might say, well, you know, we're a group of people who set high standards. 297 00:16:04.700 --> 00:16:10.720 A far better way is if you invest in people, they have shiny eyes, and together they set 298 00:16:10.720 --> 00:16:11.720 the goals. 299 00:16:11.720 --> 00:16:14.060 Now you're working into possibilities. 300 00:16:14.060 --> 00:16:18.400 It's not a standard to live up to, it's a possibility to live into. 301 00:16:18.400 --> 00:16:24.200 And what I have found in 35 years of working with teams is that when you give people an 302 00:16:24.200 --> 00:16:30.560 amazing possibility, a grand possibility, it enrolls them, it gives them shiny eyes, 303 00:16:30.560 --> 00:16:33.440 like we're doing this big goal. 304 00:16:33.440 --> 00:16:38.800 And that's, you know, and everybody now understands what I do matters when the work I'm doing 305 00:16:38.800 --> 00:16:40.760 moves the triple bottom line. 306 00:16:40.760 --> 00:16:43.280 It helps the customers, it's bringing profitability. 307 00:16:43.280 --> 00:16:48.040 They understand that what they do contributes to the bottom line. 308 00:16:48.040 --> 00:16:53.280 This adds deep meaning and deep motivation and loyalty to the team. 309 00:16:53.360 --> 00:16:57.600 Look, I understand, there's always a group of people who are what we call the takers. 310 00:16:57.600 --> 00:17:01.640 No matter how much you invest in them, no matter how much, they don't want to grow, 311 00:17:01.640 --> 00:17:06.200 they want their paycheck, and they don't survive in this type of environment. 312 00:17:06.200 --> 00:17:07.839 They just get flushed out by it. 313 00:17:07.839 --> 00:17:11.640 But for the people who do want this, they love this. 314 00:17:11.640 --> 00:17:13.599 They love this whole concept. 315 00:17:13.599 --> 00:17:21.619 So the power of a fully alive team, when a group of people who are providing incredible 316 00:17:21.619 --> 00:17:27.660 value to their market are fully alive doing it, their best creativity is released. 317 00:17:27.660 --> 00:17:30.700 They grow far beyond what they thought they were capable of. 318 00:17:30.700 --> 00:17:36.660 It is one of the most exciting things for me as a leader to watch a team just blow way 319 00:17:36.660 --> 00:17:41.380 past all the standards and, you know, the goals they had set for themselves. 320 00:17:41.380 --> 00:17:46.420 I'm surprised so many times, sometimes it's the person I least expected to pull it off. 321 00:17:46.460 --> 00:17:52.500 And I love that everybody gets to be the hero of the story throughout this journey together. 322 00:17:52.500 --> 00:17:54.240 And that's what great leaders do. 323 00:17:54.240 --> 00:17:57.300 They focus on the triple bottom line.