WEBVTT 1 00:00:00.000 --> 00:00:02.320 OK. 2 00:00:02.320 --> 00:00:04.840 Well, I think we'll go ahead and get started. 3 00:00:04.840 --> 00:00:09.200 We have most of us on here. 4 00:00:09.200 --> 00:00:11.440 All right, so you guys remember last week 5 00:00:11.440 --> 00:00:15.120 we talked about upgrading your meeting culture 6 00:00:15.120 --> 00:00:17.480 and knowing that there were three modes of meeting. 7 00:00:17.480 --> 00:00:20.160 There's one-to-one, that's a work meeting, 8 00:00:20.160 --> 00:00:22.840 and that's highly efficient if both parties know 9 00:00:22.840 --> 00:00:26.760 how to do deep work, and so that involves focused thinking. 10 00:00:26.760 --> 00:00:28.840 There's one-to-many, and that's training, 11 00:00:28.840 --> 00:00:31.120 much like we're doing here in the Edge, 12 00:00:31.120 --> 00:00:34.120 and the webinar style is the most effective. 13 00:00:34.120 --> 00:00:37.240 And then there is the many-to-many meeting. 14 00:00:37.240 --> 00:00:41.040 That is the least effective and the least respectful 15 00:00:41.040 --> 00:00:44.760 way of meeting, and it's also the default in most teams. 16 00:00:44.760 --> 00:00:47.160 But last week, we learned what the answer 17 00:00:47.160 --> 00:00:49.160 to too many meetings are, and that's 18 00:00:49.160 --> 00:00:51.360 called having fire meetings. 19 00:00:51.360 --> 00:00:57.800 So that's focused, informative, respectful, and effective. 20 00:00:57.840 --> 00:01:01.880 So just to recap, focused is using the right mode, 21 00:01:01.880 --> 00:01:03.440 and so that would look like saying 22 00:01:03.440 --> 00:01:04.840 to the people who are meeting, 23 00:01:04.840 --> 00:01:07.360 this meeting will be successful if, 24 00:01:07.360 --> 00:01:08.600 and you state the goal that you want 25 00:01:08.600 --> 00:01:10.000 to accomplish in your time. 26 00:01:11.080 --> 00:01:13.880 Informative is what do they need to know? 27 00:01:13.880 --> 00:01:15.720 What is the key point? 28 00:01:15.720 --> 00:01:17.320 And it's giving folks enough time 29 00:01:17.320 --> 00:01:19.680 to be able to join the meeting. 30 00:01:19.680 --> 00:01:23.240 Respectful is giving people enough warning, 31 00:01:23.240 --> 00:01:26.880 jumping on two minutes early so that you build that culture, 32 00:01:26.880 --> 00:01:28.760 and you respect one another's time. 33 00:01:28.760 --> 00:01:32.000 It communicates hugely to respecting one another's time. 34 00:01:32.000 --> 00:01:36.040 And I loved the five-star permission. 35 00:01:36.040 --> 00:01:38.280 Do you guys remember what that meant? 36 00:01:38.280 --> 00:01:40.720 That if you were on, and within 10 minutes, 37 00:01:40.720 --> 00:01:43.640 you realized that that meeting did not apply to you, 38 00:01:43.640 --> 00:01:46.000 that you didn't have anything to contribute, 39 00:01:46.000 --> 00:01:47.720 you were free to raise your hand 40 00:01:47.720 --> 00:01:51.720 and to politely remove yourself from the meeting. 41 00:01:51.720 --> 00:01:55.840 And then we have effective, and what that looks like 42 00:01:55.840 --> 00:01:57.360 is halfway through the meeting, 43 00:01:57.360 --> 00:02:00.000 if you are not, you notice you haven't accomplished 44 00:02:00.000 --> 00:02:02.120 your goal, that you can stop and say, 45 00:02:02.120 --> 00:02:04.120 we're halfway through, and we need to meet 46 00:02:04.120 --> 00:02:07.640 our objective of X, Y, and Z. 47 00:02:07.640 --> 00:02:09.240 And then of course, at the end of the meeting, 48 00:02:09.240 --> 00:02:11.880 you're gonna state if the objective was met, 49 00:02:11.880 --> 00:02:14.760 and then have clear goals for moving forward 50 00:02:14.760 --> 00:02:16.120 or clear next steps. 51 00:02:17.040 --> 00:02:20.520 So fire meetings, and those ensure that you and your team 52 00:02:20.520 --> 00:02:24.320 will no longer have meetings that are just distractions 53 00:02:24.320 --> 00:02:25.720 from getting your work done. 54 00:02:26.480 --> 00:02:28.520 So I think we're all in favor of fire meetings. 55 00:02:28.520 --> 00:02:30.680 It's a new way of meeting. 56 00:02:30.680 --> 00:02:34.040 Today, we're gonna talk about three types 57 00:02:34.040 --> 00:02:36.120 of growth strategies to grow a business 58 00:02:36.120 --> 00:02:40.960 and to scale to a much larger market share. 59 00:02:40.960 --> 00:02:43.240 So three types of growth strategies to grow a business 60 00:02:43.240 --> 00:02:46.240 and scale to a much larger market share. 61 00:02:46.240 --> 00:02:48.800 And before I hand it over to Dion, 62 00:02:48.800 --> 00:02:51.840 today's pro tip, I just wanna remind you guys 63 00:02:51.840 --> 00:02:54.120 to find a light in your work. 64 00:02:54.160 --> 00:02:56.520 And if you remember, in week 12, 65 00:02:56.520 --> 00:02:58.680 we talked about the joy table. 66 00:02:58.680 --> 00:03:03.680 And that was listing on a scale, a square scale graph, 67 00:03:04.200 --> 00:03:09.200 what was high joy and high effectiveness or reach 68 00:03:09.800 --> 00:03:12.000 and charting that out. 69 00:03:12.000 --> 00:03:14.840 And whatever was in the number four box, 70 00:03:14.840 --> 00:03:17.160 you ask the three questions, can I delete? 71 00:03:17.160 --> 00:03:18.360 Can I delegate? 72 00:03:18.360 --> 00:03:19.880 Can I automate? 73 00:03:19.880 --> 00:03:22.560 And for most of those things, I'm sure it's one of the three 74 00:03:22.560 --> 00:03:25.200 but if you cannot put a task 75 00:03:25.200 --> 00:03:28.400 into one of those three categories, you get to invert it, 76 00:03:28.400 --> 00:03:30.160 which means that you pair it with something 77 00:03:30.160 --> 00:03:32.240 that brings you joy or delight 78 00:03:32.240 --> 00:03:34.920 and you reframe the way that you look at that, 79 00:03:34.920 --> 00:03:36.600 create a different expectation 80 00:03:36.600 --> 00:03:38.360 for that task that you have to do. 81 00:03:39.560 --> 00:03:42.720 All right, with that, is everyone ready to dive in? 82 00:03:42.720 --> 00:03:43.880 Okay, as we're going through, 83 00:03:43.880 --> 00:03:46.680 please feel free to post questions or comments in the chat. 84 00:03:46.680 --> 00:03:48.200 We wanna hear from you. 85 00:03:48.200 --> 00:03:50.840 And Dion, I'm gonna hand it over to you. 86 00:03:50.840 --> 00:03:51.680 Thank you, Jenny. 87 00:03:51.680 --> 00:03:53.880 I know that you implemented 88 00:03:53.880 --> 00:03:57.360 some of the new meeting culture stuff, 89 00:03:57.360 --> 00:04:00.280 even though I think the team gave you the feedback 90 00:04:00.280 --> 00:04:02.160 that they feel we have the right amount of meetings 91 00:04:02.160 --> 00:04:04.440 and some, but what was your adjustment? 92 00:04:05.320 --> 00:04:10.320 Yes, I think definitely the five-star permission, 93 00:04:10.800 --> 00:04:13.120 we immediately implemented that with the team. 94 00:04:13.120 --> 00:04:14.920 Just a reminder, you guys, 95 00:04:14.920 --> 00:04:16.360 because our team is so supportive 96 00:04:16.360 --> 00:04:17.959 that a lot of people will stay on the calls 97 00:04:17.959 --> 00:04:22.600 even if it's not something that they're contributing to. 98 00:04:22.600 --> 00:04:25.080 And then also what you said 99 00:04:25.080 --> 00:04:27.640 about trying to end two minutes early 100 00:04:27.640 --> 00:04:30.960 with clear goals and moving forward. 101 00:04:30.960 --> 00:04:32.440 Because again, I think what can happen 102 00:04:32.440 --> 00:04:34.680 is with a team that really likes one another, 103 00:04:34.680 --> 00:04:36.920 you spend a lot more time on the meeting, 104 00:04:36.920 --> 00:04:40.400 chatting and conversing about the day 105 00:04:40.400 --> 00:04:42.000 and not realizing, oh, you know what? 106 00:04:42.000 --> 00:04:44.160 That's not really respectful to everyone's time, 107 00:04:44.160 --> 00:04:46.160 especially those who have to jump to next meetings 108 00:04:46.160 --> 00:04:48.880 or have tasks to complete for the day. 109 00:04:48.880 --> 00:04:52.480 So those are the two immediate things that we implemented. 110 00:04:53.560 --> 00:04:56.160 So for that reason, given the five-star thing, 111 00:04:56.160 --> 00:04:57.960 I'm gonna jump off right now. 112 00:04:57.960 --> 00:04:58.800 No, no. 113 00:05:00.000 --> 00:05:01.000 No. 114 00:05:01.000 --> 00:05:04.000 I just want to check if you guys are listening. 115 00:05:04.000 --> 00:05:05.000 You really are. 116 00:05:05.000 --> 00:05:06.000 It's lovely. 117 00:05:06.000 --> 00:05:07.000 Okay. 118 00:05:07.000 --> 00:05:11.360 So what we want to, so you might be wondering architecturally, why do we go from like meetings 119 00:05:11.360 --> 00:05:14.400 last week to growth strategies this week? 120 00:05:14.400 --> 00:05:17.320 Shouldn't we stick on growth strategy for a couple of weeks and so on? 121 00:05:17.320 --> 00:05:20.600 And the reason is we actually are cycling like a spiral staircase. 122 00:05:20.600 --> 00:05:25.180 We're going up and we keep touching the same subject each time at a higher level. 123 00:05:25.180 --> 00:05:28.280 So today we're going to use some of the tools we've learned in the past and we're going 124 00:05:28.280 --> 00:05:32.220 to talk a lot about how we contribute. 125 00:05:32.220 --> 00:05:38.500 You know, one of the big goals for a good leader is that everyone in the organization 126 00:05:38.500 --> 00:05:42.940 understands how they contribute to the bottom line. 127 00:05:42.940 --> 00:05:45.100 And I may have told the story again. 128 00:05:45.100 --> 00:05:49.900 So it's told the story before, but I want to tell it again about this fascinating scenario 129 00:05:49.900 --> 00:05:54.980 of where 50 CEOs, have I shared that story before 50 CEOs that visited Vietnam? 130 00:05:54.980 --> 00:05:56.380 I'll tell that story. 131 00:05:56.380 --> 00:05:57.380 Okay. 132 00:05:57.480 --> 00:06:02.160 So 50 CEOs went on, actually it was Malaysia and they were traveling to Malaysia and they 133 00:06:02.160 --> 00:06:06.720 were 50 CEOs from very large companies throughout Europe and the United States. 134 00:06:06.720 --> 00:06:10.320 And it was a special, you know, CEO development program. 135 00:06:10.320 --> 00:06:16.840 And they pitched up at this pewter factory and this pewter factory was a Malay and a 136 00:06:16.840 --> 00:06:22.120 Brit who had figured out how to extract, I think, lead out of pewter or some clever thing, 137 00:06:22.120 --> 00:06:25.040 but they manufactured various pewter products. 138 00:06:25.060 --> 00:06:31.380 So anyway, they had 3000 workers in the factory. 139 00:06:31.380 --> 00:06:37.980 And when it came time for the presentation, in walked five people in their overalls, in 140 00:06:37.980 --> 00:06:40.940 their blue overalls. 141 00:06:40.940 --> 00:06:44.140 And the CEOs were looking at each other going, so where are the executives? 142 00:06:44.140 --> 00:06:48.300 You know, we came here to find out all your secrets and what you do and what's so magical 143 00:06:48.300 --> 00:06:52.900 and the level of productivity of this company is off the charts, world renowned. 144 00:06:52.920 --> 00:06:57.880 And they were picked as one of the companies to visit with these 50 CEOs that were visiting 145 00:06:57.880 --> 00:06:59.960 all these high performance companies. 146 00:06:59.960 --> 00:07:05.960 And these five people walked in and then they realized these were factory workers. 147 00:07:05.960 --> 00:07:11.680 And these five factory workers presented the company's financials, their marketing position 148 00:07:11.680 --> 00:07:19.480 and market share they were taking, what their best practices were on the manufacturing and 149 00:07:19.500 --> 00:07:23.180 so on and presented the entire company. 150 00:07:23.180 --> 00:07:27.140 And so finally, one of the CEOs raised his hand, he said, OK, come on, guys, how long 151 00:07:27.140 --> 00:07:32.100 did it take for them to groom you to say all that, you know? 152 00:07:32.100 --> 00:07:34.620 And the worker was genuinely confused. 153 00:07:34.620 --> 00:07:37.340 And he said, no, no. 154 00:07:37.340 --> 00:07:47.900 He said, what happened was we heard that these 50 CEOs were coming, you were real VIPs. 155 00:07:47.900 --> 00:07:53.320 And so they asked, they put on the bulletin board in the factory who would like to present 156 00:07:53.320 --> 00:07:57.440 these, this information must cover these things. 157 00:07:57.440 --> 00:08:01.180 And the problem was all 3000 people put their names down. 158 00:08:01.180 --> 00:08:04.800 We were the five lucky ones chosen to present. 159 00:08:04.800 --> 00:08:10.840 So the CEO says, are you telling me that all 3000 people can make this presentation? 160 00:08:10.840 --> 00:08:13.920 He said, mostly, yep, mostly we could do. 161 00:08:13.940 --> 00:08:17.860 So you said the person on the factory line knows what your market positioning is? 162 00:08:17.860 --> 00:08:20.180 How do you guys do that? 163 00:08:20.180 --> 00:08:25.260 And it was this discovery when I was doing my PhD thesis, and I was literally connecting 164 00:08:25.260 --> 00:08:28.020 with these companies from around the world. 165 00:08:28.020 --> 00:08:33.780 And I was fascinated by, you know, it's like different cultures are good at different things, 166 00:08:33.780 --> 00:08:34.780 you know. 167 00:08:34.780 --> 00:08:40.820 And for the most part, the US has led a lot of leadership development, you know, collaboration 168 00:08:40.820 --> 00:08:41.820 and so forth. 169 00:08:42.280 --> 00:08:44.240 But I was fascinated by this idea. 170 00:08:44.240 --> 00:08:49.160 And then I found out that there are several companies throughout the United States that 171 00:08:49.160 --> 00:08:59.240 operate in this mode, where everybody in the company could tell you what the company does, 172 00:08:59.240 --> 00:09:02.160 and what they do and how it contributes. 173 00:09:02.160 --> 00:09:07.440 And that, you know, is the same story that I shared with you before about, you know, 174 00:09:07.460 --> 00:09:14.780 the Packer, who is packaging telephone equipment, that was going to go and be installed in Walmart. 175 00:09:14.780 --> 00:09:19.060 And so this visiting speaker wants to do, you know, visiting guests or trainers sort 176 00:09:19.060 --> 00:09:23.500 of doing what I do, wanted to see what kind of corporate culture. 177 00:09:23.500 --> 00:09:30.220 So he didn't go to the, you know, to the reception area, where all guests arrive, he went down 178 00:09:30.220 --> 00:09:34.220 the back to the loading dock, and he met the loading dock guy, and he said, what do you 179 00:09:34.220 --> 00:09:35.220 do? 180 00:09:35.220 --> 00:09:38.220 How does you know, and what you do, how's that contribute? 181 00:09:38.220 --> 00:09:43.380 And that, that guy told him exactly what he did is while I used to go, I've gone out, 182 00:09:43.380 --> 00:09:47.060 you know, and we told that story before, when we said, you know, work backwards with that 183 00:09:47.060 --> 00:09:48.460 helps the client. 184 00:09:48.460 --> 00:09:53.500 And he knew exactly how what he packed, how he packed, and how they contributed to the 185 00:09:53.500 --> 00:09:54.820 bottom line. 186 00:09:54.820 --> 00:09:59.700 So the question is, if I were to come and visit your company, 187 00:10:00.000 --> 00:10:01.680 and I didn't come to the reception area 188 00:10:01.680 --> 00:10:02.980 and I just did a walk around 189 00:10:02.980 --> 00:10:05.880 and I walked to every single person in your team, 190 00:10:05.880 --> 00:10:08.540 in your organization and I asked the question, 191 00:10:09.640 --> 00:10:14.400 how is what you do contributing financially to the business? 192 00:10:14.400 --> 00:10:17.240 Would I get a five or 20 minute explanation 193 00:10:17.240 --> 00:10:19.300 or would I get a very concise answer? 194 00:10:21.320 --> 00:10:22.840 It's a great question, right? 195 00:10:22.840 --> 00:10:24.880 In other words, not you because you know them 196 00:10:24.880 --> 00:10:26.040 and you know what they're supposed to say, 197 00:10:26.040 --> 00:10:27.600 but me, I don't know them 198 00:10:27.600 --> 00:10:28.680 or somebody who doesn't know them 199 00:10:28.720 --> 00:10:30.640 comes in and asks that question. 200 00:10:30.640 --> 00:10:34.540 And this set the standard for me of this idea 201 00:10:34.540 --> 00:10:36.960 of everybody knowing everything except salaries, 202 00:10:36.960 --> 00:10:38.960 that's where I learned this, 203 00:10:38.960 --> 00:10:41.600 that's how I came across this idea. 204 00:10:41.600 --> 00:10:43.680 And so then as I started to think about it, 205 00:10:43.680 --> 00:10:45.600 I said, okay, we've laid that foundation, 206 00:10:45.600 --> 00:10:47.080 how do we build on that now? 207 00:10:47.080 --> 00:10:50.880 So if every team member understands how we make money, 208 00:10:50.880 --> 00:10:55.260 how they fit in and they starting to act like owners, 209 00:10:55.260 --> 00:10:56.500 then the question is, 210 00:10:56.500 --> 00:10:59.140 how do you take those group of owners now 211 00:10:59.140 --> 00:11:02.180 and get them to take the business to the next level? 212 00:11:02.180 --> 00:11:05.460 How do you scale the business up to take it, 213 00:11:05.460 --> 00:11:09.500 you know, upscale it to take greater market share? 214 00:11:09.500 --> 00:11:11.700 So, you know, one of the things we encourage, 215 00:11:11.700 --> 00:11:14.920 especially when we do dashboard design and all that, 216 00:11:14.920 --> 00:11:18.020 one of the key things is we talk through this idea 217 00:11:18.020 --> 00:11:20.680 of finding your keystone number. 218 00:11:20.680 --> 00:11:23.580 There is one number that drives your business 219 00:11:23.580 --> 00:11:25.780 more than any other. 220 00:11:25.780 --> 00:11:28.460 And, you know, I know what it is at Brilliant, 221 00:11:28.460 --> 00:11:31.320 you know, we know exactly what that number is. 222 00:11:31.320 --> 00:11:33.460 There's lots of things that contribute to profit, 223 00:11:33.460 --> 00:11:36.700 but there's one big number that if we turn that dial, 224 00:11:36.700 --> 00:11:39.000 all the other dials work, right? 225 00:11:39.000 --> 00:11:40.500 If you can find the one number, 226 00:11:40.500 --> 00:11:42.540 and I'm not talking about, you know, 227 00:11:42.540 --> 00:11:44.080 I'm not talking about theoretical stuff. 228 00:11:44.080 --> 00:11:46.640 Well, we need more sales, sure, of course. 229 00:11:46.640 --> 00:11:48.500 You know, we should more sales and less expenses. 230 00:11:48.500 --> 00:11:52.340 Yeah, I'm not talking about simplistic 231 00:11:52.340 --> 00:11:53.860 lack of insight comments. 232 00:11:53.860 --> 00:11:55.780 I'm looking for deep insight 233 00:11:55.780 --> 00:11:57.860 that you've really pressed, pressed. 234 00:11:57.860 --> 00:12:00.700 I remember speaking to DST Systems, 235 00:12:00.700 --> 00:12:02.620 which you may not know, 236 00:12:02.620 --> 00:12:05.100 they acquired, you know, a portion of our company 237 00:12:05.100 --> 00:12:06.140 some years back. 238 00:12:06.140 --> 00:12:10.020 They, about a $12 billion public company back then, 239 00:12:10.020 --> 00:12:14.320 and they host and manage 85% of all the mutual funds 240 00:12:14.320 --> 00:12:16.280 in the United States. 241 00:12:16.280 --> 00:12:18.440 And there are two big hubs in the country. 242 00:12:18.440 --> 00:12:21.180 There's the one you know in New York 243 00:12:21.180 --> 00:12:23.700 that manages, you know, DTCC in New York, 244 00:12:24.540 --> 00:12:25.940 the Depository Trust and Clearing Corporation 245 00:12:25.940 --> 00:12:28.540 that does all 3,500 bank transactions. 246 00:12:28.540 --> 00:12:32.140 And then there's DST Systems in Kansas City, 247 00:12:32.140 --> 00:12:33.380 which is a massive hub. 248 00:12:33.380 --> 00:12:35.140 Not many people realize Kansas City 249 00:12:35.140 --> 00:12:37.440 is an enormous financial hub. 250 00:12:37.440 --> 00:12:42.440 Now, I asked their CEO what was his keystone number, 251 00:12:42.900 --> 00:12:45.140 because I was on a board with them. 252 00:12:45.140 --> 00:12:49.340 And he said, we're in the pennies business. 253 00:12:49.340 --> 00:12:50.700 I said, what do you mean? 254 00:12:50.700 --> 00:12:53.260 He says, well, our financial access network, 255 00:12:53.780 --> 00:12:57.620 the FAN, allows everybody to access 256 00:12:57.620 --> 00:12:59.260 and see their mutual funds. 257 00:12:59.260 --> 00:13:01.260 So when you get onto your Vanguard 258 00:13:01.260 --> 00:13:03.780 or whatever mutual funds you might own, 259 00:13:03.780 --> 00:13:05.700 you're not actually on those companies. 260 00:13:05.700 --> 00:13:08.460 You're actually on DST's backend system. 261 00:13:08.460 --> 00:13:10.260 You just don't know you are. 262 00:13:10.260 --> 00:13:12.940 And every time you access it, 263 00:13:12.940 --> 00:13:16.940 it costs a few pennies for that transaction. 264 00:13:16.940 --> 00:13:21.860 And so they realized they were in the pennies business. 265 00:13:21.860 --> 00:13:23.220 And when they realized, yeah, 266 00:13:23.220 --> 00:13:25.860 somebody looked it up, 2.8 billion in revenue, 267 00:13:25.860 --> 00:13:28.220 but 2.8 billion out of pennies. 268 00:13:29.220 --> 00:13:32.500 And when they could increase it by half a penny, 269 00:13:32.500 --> 00:13:35.580 like, you know, so this won't just cost one cent, 270 00:13:35.580 --> 00:13:39.380 this will cost, you know, 0.15 cents. 271 00:13:39.380 --> 00:13:41.740 So, and you say, what does that do? 272 00:13:41.740 --> 00:13:44.340 Well, that can drive massive amounts 273 00:13:44.340 --> 00:13:47.060 because of just the sheer volume of transactions. 274 00:13:47.060 --> 00:13:49.820 Knowing that one keystone number 275 00:13:49.820 --> 00:13:52.300 in your business is everything. 276 00:13:52.300 --> 00:13:53.900 So that's the first goal 277 00:13:53.900 --> 00:13:56.780 that if everybody understands what that one is, 278 00:13:56.780 --> 00:13:58.420 that's the first step in the right direction. 279 00:13:58.420 --> 00:14:03.420 Now let's talk about three ways you can grow your business. 280 00:14:03.780 --> 00:14:05.980 There are three ways you can grow your business, 281 00:14:05.980 --> 00:14:09.500 depending on the level of growth that you want. 282 00:14:09.500 --> 00:14:11.900 So I'm gonna just, to make it simple, 283 00:14:11.900 --> 00:14:13.620 I'm gonna assume you wanna grow your business 284 00:14:13.620 --> 00:14:18.620 by 10% or 100% or 10X, i.e. add a zero. 285 00:14:19.300 --> 00:14:21.260 So if you're a $15 million business 286 00:14:21.260 --> 00:14:24.100 and you wanna add a zero, that'd take you to 150 million. 287 00:14:24.100 --> 00:14:25.940 So that's what I mean by 10X. 288 00:14:25.940 --> 00:14:30.940 So 10%, 100%, 10X, just to keep it simple. 289 00:14:32.020 --> 00:14:33.900 Now, of course, the percentage will vary a little bit. 290 00:14:33.900 --> 00:14:38.740 So for the 10X, if I want a 10 to 15% type growth, 291 00:14:40.260 --> 00:14:42.700 my focus needs to be on processes. 292 00:14:43.820 --> 00:14:45.780 Process will get me there, right? 293 00:14:45.780 --> 00:14:47.940 How can we cut steps out? 294 00:14:48.020 --> 00:14:49.900 How can we look at how we manage, 295 00:14:49.900 --> 00:14:53.300 how can we make our sales cycle a little shorter, 296 00:14:53.300 --> 00:14:54.820 a little less expensive, 297 00:14:54.820 --> 00:14:57.620 the acquisition cost of customers a little less? 298 00:14:57.620 --> 00:15:00.300 How can we make our tracking of our... 299 00:15:00.000 --> 00:15:05.200 CRM system better? How can we invoice faster, etc. I'm looking 300 00:15:05.200 --> 00:15:08.240 at processes in the organization, and I'm asking the 301 00:15:08.240 --> 00:15:13.600 team as the CEO, help me innovate at every process. So 302 00:15:13.600 --> 00:15:16.280 instead of having to wait 30 days for payment, can we get 303 00:15:16.280 --> 00:15:19.840 them in 15? All these little things will add up and get you 304 00:15:19.840 --> 00:15:23.880 your 10-20% growth. Now, most big corporations live in that 305 00:15:23.880 --> 00:15:28.880 world. But if you want 100% growth, if you literally were a 306 00:15:28.880 --> 00:15:31.840 $15 million company last year, and you want to be a $30 307 00:15:31.840 --> 00:15:35.760 million company in 12 months, the only way to do that is to 308 00:15:35.760 --> 00:15:40.320 focus on product, you have to create a new product, or a new 309 00:15:40.320 --> 00:15:43.600 service of some kind, something brand new, you've never offered 310 00:15:43.600 --> 00:15:47.960 before, you have to expand your product. And the best one to do 311 00:15:48.040 --> 00:15:52.120 is to look at your, your core customers. And I'm going to show 312 00:15:52.120 --> 00:15:55.400 you that little analysis in a second how to do that. But you 313 00:15:55.400 --> 00:15:58.720 look at your core customers, and you say, which of these 314 00:15:58.720 --> 00:16:03.320 core customers would, they love us, they're raving fans, and 315 00:16:03.320 --> 00:16:07.280 they would buy whatever else we offered them. Right? So at 316 00:16:07.280 --> 00:16:11.320 Brilliant, you know, we used to have a development program, many 317 00:16:11.320 --> 00:16:14.200 of you know, is Brilliant TV, and then we invented Brilliant 318 00:16:14.200 --> 00:16:19.120 Premium. But we went from 20, back then $20 a month, to an 319 00:16:19.160 --> 00:16:24.480 $800 product. Now, that's a jump for us, right? We've never sold 320 00:16:24.480 --> 00:16:30.040 an $800 product to a community who expected to be free. So it 321 00:16:30.040 --> 00:16:34.960 was fun. You know, it's fun to happen to be our marketplace 322 00:16:34.960 --> 00:16:38.440 doesn't have a frame for investing $800 in your personal 323 00:16:38.480 --> 00:16:43.360 growth and development. So in the space, so we had to come up 324 00:16:43.360 --> 00:16:47.680 with a new product. And that has been a very successful product 325 00:16:47.680 --> 00:16:53.160 for us. Now, if you want to go 10x, and we're going to get into 326 00:16:53.160 --> 00:16:56.560 later stuff about how to take your contribution as a team 327 00:16:56.560 --> 00:17:00.280 member to 10x it. That's why I'm introducing the topic today. 328 00:17:00.760 --> 00:17:03.760 Then instead of process or product, process gives us the 329 00:17:03.760 --> 00:17:10.200 10%. Product gives us the 100%. Pivoting gives us 10x. You 330 00:17:10.200 --> 00:17:15.040 rethink your business. Let me give you an example. Perhaps, 331 00:17:15.200 --> 00:17:20.440 you know, you've been providing, maybe you run a series of 332 00:17:20.440 --> 00:17:24.599 restaurants, and you've been providing, you know, in-store 333 00:17:24.599 --> 00:17:28.480 service, in-store dining. And then you decide, you know what 334 00:17:28.480 --> 00:17:31.720 we're going to do, we're going to start with delivery. And then 335 00:17:31.720 --> 00:17:34.560 you discover there's a whole different mindset. So when I 336 00:17:34.560 --> 00:17:37.480 learned, for instance, when we were providing finance to pizza 337 00:17:37.480 --> 00:17:41.280 houses, I learned so much about the pizza business. Oh, my 338 00:17:41.280 --> 00:17:44.880 goodness, I had no idea, for instance, that the difference 339 00:17:44.880 --> 00:17:48.880 between in-store dining in a pizza store, and actual pizza 340 00:17:48.880 --> 00:17:51.880 delivery are two vastly different businesses. I thought 341 00:17:51.880 --> 00:17:54.280 it's just pizza. What difference does it make if you eat it there 342 00:17:54.280 --> 00:17:58.560 or here? Turns out a whole lot. You need a completely different 343 00:17:58.560 --> 00:18:01.520 staff, infrastructure, completely different systems. 344 00:18:01.920 --> 00:18:07.480 So when the company that we were working with, wanted to become 345 00:18:07.480 --> 00:18:11.240 number four, we had to get them to 2000 stores. And at that 346 00:18:11.240 --> 00:18:13.920 time, they only had 200 stores, they've just got close to 347 00:18:13.920 --> 00:18:17.600 hitting 2000 now. So when we were helping them, and I was 348 00:18:17.600 --> 00:18:22.120 working with a CEO, and in Ohio, and what we were doing is 349 00:18:22.120 --> 00:18:27.360 helping them, they had to first educate me on understanding 350 00:18:27.360 --> 00:18:30.800 because, you know, we were the ones providing the finance. So 351 00:18:30.800 --> 00:18:34.040 we said, Okay, we'll give you the finance for 1000 stores. So 352 00:18:34.040 --> 00:18:37.040 that was about a $400 million, you know, chunk of investment 353 00:18:37.040 --> 00:18:40.480 that we were bringing in through a, you know, some special 354 00:18:40.480 --> 00:18:42.480 insurance and various other things we've done to make that 355 00:18:42.480 --> 00:18:45.800 financing possible for them. So because they couldn't access it, 356 00:18:45.800 --> 00:18:48.880 they were too small to access it. And that's the point, when 357 00:18:48.880 --> 00:18:52.840 you want to 10x your business, you need a different access to 358 00:18:52.840 --> 00:18:55.960 capital, you need different systems, you need maybe even 359 00:18:55.960 --> 00:19:00.360 different employees, or you do as an add on business, and the 360 00:19:00.360 --> 00:19:03.680 amount of people, it's like the banks, you know, used to go into 361 00:19:03.680 --> 00:19:06.720 the bank, and you put a deposit used to draw money, remember all 362 00:19:06.720 --> 00:19:10.400 that. Now you've got an app on your phone. But when the app on 363 00:19:10.400 --> 00:19:14.400 the phone started, how many of you know that the bank had to 364 00:19:14.400 --> 00:19:17.880 rethink their processes, rethink their business, rethink 365 00:19:17.880 --> 00:19:20.520 how that experience is going to be rethink their banking 366 00:19:20.520 --> 00:19:24.800 security, everything changed, when you want to pivot to that 367 00:19:25.120 --> 00:19:29.240 next level, that 10x level, you can't just keep turning the 368 00:19:29.240 --> 00:19:32.600 dials on the ones you have, sometimes you have to literally 369 00:19:32.600 --> 00:19:38.320 rethink your business. And now there's a lot behind all of 370 00:19:38.320 --> 00:19:43.280 that. And there's a lot of more like CEO level strategy stuff, 371 00:19:43.280 --> 00:19:47.320 which I'll bring up on the CEO call. But then the idea of the 372 00:19:47.320 --> 00:19:52.000 core idea is when Hewlett Packard, who at that point owned 373 00:19:52.160 --> 00:19:57.240 laser printers, wanted to get into the into the desk jet 374 00:19:57.320 --> 00:19:59.960 business. So desk jet printers had just come out back 375 00:20:00.000 --> 00:20:03.460 then, and they were trying to figure it out. And so they went 376 00:20:03.460 --> 00:20:05.760 to Harvard Business School, and they spoke to Christensen, the 377 00:20:05.760 --> 00:20:09.100 guy who wrote the innovators dilemma, we draw on some of the 378 00:20:09.100 --> 00:20:12.600 materials here. And that book, you know, they asked him, what 379 00:20:12.600 --> 00:20:16.400 do we do? How do we 10x this business? How do we own both 380 00:20:16.400 --> 00:20:21.000 spaces? And the answer was, you'd create a new company in a 381 00:20:21.000 --> 00:20:25.600 new state. And you put new employees and you have the two 382 00:20:25.600 --> 00:20:28.080 companies compete for market share. So what do you mean to 383 00:20:28.080 --> 00:20:31.280 come and they both said, that's right, the holding company can 384 00:20:31.280 --> 00:20:34.760 own them both. But they have to have a different culture, and a 385 00:20:34.760 --> 00:20:37.360 different approach and a different so sometimes to get 386 00:20:37.360 --> 00:20:40.120 that new 10x growth, you almost have to have like a little 387 00:20:40.120 --> 00:20:43.880 startup inside your own company to tackle that. Okay, see if 388 00:20:43.880 --> 00:20:46.560 you can create an app, see if you can make that go. And that's 389 00:20:46.560 --> 00:20:51.080 really highly innovative. So don't try to make the whole 390 00:20:51.080 --> 00:20:54.440 company go and do that you might want to pioneer that on the 391 00:20:55.160 --> 00:20:58.280 Okay, a lot of stuff behind all that. But let's talk for a 392 00:20:58.280 --> 00:21:01.960 second about how do we think about our existing customers. So 393 00:21:01.960 --> 00:21:06.240 we need to start with a baseline. So I'm going to so we 394 00:21:06.240 --> 00:21:08.240 got a little whiteboard here that I'm just going to share 395 00:21:08.240 --> 00:21:11.480 with you quickly. And then we're going to go and I'm just sharing 396 00:21:11.480 --> 00:21:15.960 with you how do you create that bet that baseline. So we're 397 00:21:15.960 --> 00:21:19.160 going to use something we know very well, which is Jenny talked 398 00:21:19.160 --> 00:21:22.040 about it earlier as well. We're going to just start with our 399 00:21:22.080 --> 00:21:25.000 foursquare, our usual foursquare idea. And the 400 00:21:25.000 --> 00:21:27.880 foursquare idea is so cool, because you can do anything with 401 00:21:27.880 --> 00:21:30.920 this, you know. So let's talk about the first thing we're 402 00:21:30.920 --> 00:21:36.240 going to talk about here is the let me just get a thinner 403 00:21:36.240 --> 00:21:40.960 pencil. So let's, let's talk, let's start with with customers, 404 00:21:40.960 --> 00:21:48.360 right. So on our customers, on our customers, we're going to 405 00:21:48.360 --> 00:21:51.480 look at our customers. Now, with all foursquares, you have to 406 00:21:51.480 --> 00:21:54.680 always decide what are the two things that we're putting 407 00:21:54.680 --> 00:21:57.040 against each other. So obviously, in this particular 408 00:21:57.040 --> 00:22:03.320 case, we're looking at dollars versus effort. Okay, so it's 409 00:22:03.320 --> 00:22:06.680 dollars versus effort. And what we're going to do now is we're 410 00:22:06.680 --> 00:22:10.400 going to figure out what's the, you know, the next step, and you 411 00:22:10.400 --> 00:22:13.440 know, this technique, but just to remind you, the next step is 412 00:22:13.440 --> 00:22:16.360 to figure out which is the most valuable, which is the least 413 00:22:16.360 --> 00:22:19.600 most valuable square, and then what are the ones in between. So 414 00:22:19.640 --> 00:22:25.240 the most valuable square is high dollars and low effort, right? 415 00:22:25.400 --> 00:22:28.240 So high dollars, low effort is going to be our number one 416 00:22:28.240 --> 00:22:32.840 space. Right? And then high dollars, what's the worst 417 00:22:32.840 --> 00:22:36.160 scenario, we go for best, then we go to worst, what's the worst 418 00:22:36.160 --> 00:22:40.000 scenario, high effort, low dollar. So this is the one we 419 00:22:40.000 --> 00:22:44.000 don't want to be involved in. Then what's number two, well, we 420 00:22:44.000 --> 00:22:46.840 want the dollars, we don't mind the well, we do mind the effort. 421 00:22:47.160 --> 00:22:49.880 And then the last one is obviously what's left over. So 422 00:22:49.880 --> 00:22:53.880 now the question always is, now what we do is we put all our 423 00:22:53.880 --> 00:22:57.440 companies, we put all our customers, and we put their 424 00:22:57.440 --> 00:23:04.960 names in this whole system. And we say, okay, here we are. And 425 00:23:04.960 --> 00:23:08.720 we as well. And here's all our customers, and we'll put their 426 00:23:08.720 --> 00:23:12.400 names in this drawing. Now that we know the names in the 427 00:23:12.400 --> 00:23:17.000 drawing, our analysis with all four square stuff always starts 428 00:23:17.000 --> 00:23:21.400 with the same basic strategy. The first one is kill number 429 00:23:21.400 --> 00:23:25.200 four, get on the phone and thank them for being customers and 430 00:23:25.200 --> 00:23:30.440 end it. I have literally done this on a board more call, I 431 00:23:30.440 --> 00:23:33.920 said, when I used to do CEO consulting, we do this exercise, 432 00:23:34.160 --> 00:23:37.080 and then I'd get their list. And they think about it the next day 433 00:23:37.080 --> 00:23:40.560 we confirm and then we'd literally get to get them on the 434 00:23:40.560 --> 00:23:44.200 phone. And we thank them, figure out how to wrap it up 435 00:23:44.200 --> 00:23:46.960 next 30 days, because you can't just drop customers. But we've 436 00:23:47.040 --> 00:23:50.200 figured out how to get out of these customers. They were high 437 00:23:50.200 --> 00:23:53.360 effort, low dollar customers, and they were sucking resources 438 00:23:53.360 --> 00:23:57.160 we couldn't afford. So that's the first thing. So it's always 439 00:23:57.160 --> 00:23:59.760 this with this analysis, no matter whether you're just doing 440 00:23:59.760 --> 00:24:03.360 the best vacation you've ever been on, where it was fun versus 441 00:24:03.360 --> 00:24:06.240 cost, whatever you're doing, you always kill number four, you 442 00:24:06.240 --> 00:24:09.720 always kill group number four. Then the next question is, 443 00:24:10.160 --> 00:24:14.200 obviously, we like group number one. So we know those are our 444 00:24:14.200 --> 00:24:17.680 primary customers. The question is, what do we have to do to a 445 00:24:17.680 --> 00:24:24.240 two to get it to go to a one? We have to do what what scale is 446 00:24:24.240 --> 00:24:28.080 being affected? The x axis, right? So what does that mean? 447 00:24:28.160 --> 00:24:32.840 Is there a way in which we can look at the effort here? And is 448 00:24:32.840 --> 00:24:36.320 there a way to automate or delegate or bring in a partner? 449 00:24:36.480 --> 00:24:41.120 Is there a way to reduce effort to force the customer out of 450 00:24:41.120 --> 00:24:44.360 two and into one? Now you won't get all your customers into 451 00:24:44.360 --> 00:24:48.120 group one, but the continual push in this direction will help 452 00:24:48.120 --> 00:24:52.880 you. How do we get threes into ones? Does anybody tell me what 453 00:24:52.920 --> 00:24:58.760 what axis am I fixing? Dollars, right? So can we charge more? 454 00:24:58.760 --> 00:24:59.840 Can we add 455 00:25:00.000 --> 00:25:03.600 extra services, can we add extra things to those customers 456 00:25:03.600 --> 00:25:08.600 to push them up from the bottom square into the top square? 457 00:25:09.240 --> 00:25:11.500 Once we've done that exercise, 458 00:25:11.500 --> 00:25:15.680 what we now do is now we focus our marketing on this group. 459 00:25:15.680 --> 00:25:18.560 This is called our right fit client. 460 00:25:19.440 --> 00:25:21.560 The one is your right fit client. 461 00:25:21.560 --> 00:25:23.640 Now that doesn't mean you won't take twos, 462 00:25:23.640 --> 00:25:25.080 it doesn't mean you won't take threes, 463 00:25:25.080 --> 00:25:28.440 but you are definitely never taking fours. 464 00:25:28.440 --> 00:25:30.880 And when a company you thought was gonna be a three 465 00:25:30.880 --> 00:25:32.600 turned into a four, 466 00:25:32.600 --> 00:25:36.840 you have to have methods and processes and so on. 467 00:25:36.840 --> 00:25:40.080 Now we're looking at our customers and now we're asking, 468 00:25:40.080 --> 00:25:45.080 of these customers, of these top customers over here, 469 00:25:45.720 --> 00:25:48.880 over here, this top group here, of these, 470 00:25:48.880 --> 00:25:53.200 which of these can we bring in a new product? 471 00:25:53.200 --> 00:25:55.400 I hope you can see the yellow. 472 00:25:55.400 --> 00:25:56.960 Can you guys see the yellow? 473 00:25:56.960 --> 00:25:58.640 It's all right, yeah. 474 00:25:58.640 --> 00:26:01.440 Okay, so which of these can we add new product? 475 00:26:01.440 --> 00:26:04.320 Because here we're trying to look for the 100% growth. 476 00:26:04.320 --> 00:26:07.880 The 100% growth is gonna come from quadrant one clients. 477 00:26:07.880 --> 00:26:10.440 It's unlikely to come from the others, 478 00:26:10.440 --> 00:26:14.160 unless what we're doing is we're trying to raise the dollars 479 00:26:14.160 --> 00:26:16.440 so group three, funny enough, will help you 480 00:26:16.440 --> 00:26:18.420 because it's a way to raise dollars. 481 00:26:18.420 --> 00:26:21.340 What if we added additional service or an additional thing? 482 00:26:21.340 --> 00:26:24.280 What if we package some of the services together 483 00:26:24.280 --> 00:26:27.040 to push them from three into a one? 484 00:26:28.120 --> 00:26:29.520 Now, by the way, I have done this. 485 00:26:29.520 --> 00:26:32.240 We used to own a hardware manufacturing company 486 00:26:32.240 --> 00:26:34.760 in North Carolina, just outside of Edenton, 487 00:26:34.760 --> 00:26:37.280 and we used to manufacture a device 488 00:26:37.280 --> 00:26:40.920 that today is called an iPad, but we started in 2003 489 00:26:40.920 --> 00:26:43.680 and iPads I think came out, was it 2012, whenever. 490 00:26:43.680 --> 00:26:48.000 So when we were manufacturing these devices, 491 00:26:48.000 --> 00:26:50.600 they used to go into retail stores with a little scanner 492 00:26:50.600 --> 00:26:52.400 and you could go there and you get a little price check 493 00:26:52.440 --> 00:26:54.600 and you scanned it and it told you the price, 494 00:26:54.600 --> 00:26:57.840 but it also sometimes told you recipes 495 00:26:57.840 --> 00:26:59.320 or whatever else you wanted. 496 00:26:59.320 --> 00:27:02.340 So we provided, we built the scanners and the screens 497 00:27:02.340 --> 00:27:04.680 and all that, and we installed them by the thousands 498 00:27:04.680 --> 00:27:07.320 in retail stores, that's what we did. 499 00:27:07.320 --> 00:27:09.240 We took this four square process 500 00:27:09.240 --> 00:27:11.320 and we did it for our production costs. 501 00:27:11.320 --> 00:27:14.180 Where is the high cost of production? 502 00:27:14.180 --> 00:27:16.220 Where are we efficient and inefficient? 503 00:27:16.220 --> 00:27:20.720 And we found ways to delegate, bring customers in 504 00:27:20.720 --> 00:27:23.280 or even just hand off customers. 505 00:27:23.280 --> 00:27:28.160 Like for instance, what can we do with this group too? 506 00:27:28.160 --> 00:27:31.040 What we can do with them is bring in a partner 507 00:27:31.040 --> 00:27:33.880 because there is enough money, it's high dollar, 508 00:27:33.880 --> 00:27:37.400 so we can bring in a partner here who can help us. 509 00:27:37.400 --> 00:27:42.400 And so yes, it does drop to a lower dollar for us 510 00:27:42.400 --> 00:27:44.640 because we're now profit sharing, but our effort drops. 511 00:27:44.640 --> 00:27:47.480 So what happens is we move that from a two to a three, 512 00:27:47.480 --> 00:27:52.120 but that may be worth it to free up the resources 513 00:27:52.120 --> 00:27:53.480 of your team. 514 00:27:53.480 --> 00:27:55.440 Can you see how we're moving people around 515 00:27:55.440 --> 00:27:56.280 while we have to do? 516 00:27:56.280 --> 00:27:57.480 Does that make sense? 517 00:27:58.720 --> 00:27:59.680 Yeah? 518 00:27:59.680 --> 00:28:02.960 So you'll have to nod or thumbs up or something 519 00:28:02.960 --> 00:28:04.840 since I've got very small screen here. 520 00:28:04.840 --> 00:28:06.920 Most of mine's on the screen share. 521 00:28:06.920 --> 00:28:08.600 So let me know that you're tracking. 522 00:28:08.600 --> 00:28:11.320 All right, let's do this exercise one more time. 523 00:28:11.320 --> 00:28:12.920 And I'm gonna do it one more time. 524 00:28:12.920 --> 00:28:15.520 I know we're running a little slow here, 525 00:28:15.520 --> 00:28:17.040 so I'm gonna try to speed this up. 526 00:28:17.600 --> 00:28:19.320 So we'll do it again. 527 00:28:19.320 --> 00:28:24.000 This time, let's talk about our products or services. 528 00:28:24.920 --> 00:28:27.200 And let's, we know the routine now, right? 529 00:28:27.200 --> 00:28:29.600 We have to identify the number one. 530 00:28:29.600 --> 00:28:31.960 So again, what are we pitting against what? 531 00:28:31.960 --> 00:28:36.120 We're gonna go dollars versus effort again. 532 00:28:38.480 --> 00:28:41.400 You know, effort to sell it, effort to support it, 533 00:28:41.400 --> 00:28:45.520 energy, resources, effort or resources. 534 00:28:45.520 --> 00:28:47.960 You can choose the, whatever you think. 535 00:28:49.920 --> 00:28:51.800 Okay, so we've decided what we're pitting 536 00:28:51.800 --> 00:28:52.800 against each other. 537 00:28:52.800 --> 00:28:55.720 Now we have to identify what's our number one, 538 00:28:55.720 --> 00:28:56.960 what's the best one? 539 00:28:56.960 --> 00:28:59.800 Is low resources, high dollars. 540 00:28:59.800 --> 00:29:02.400 So once again, here's where the number one is. 541 00:29:02.400 --> 00:29:04.560 And then we always look at the opposite, number four. 542 00:29:04.560 --> 00:29:06.160 What's the worst one? 543 00:29:06.160 --> 00:29:08.440 Low dollars, high resources. 544 00:29:08.440 --> 00:29:10.240 So number four is here. 545 00:29:10.240 --> 00:29:12.680 And then number two is probably over there and three. 546 00:29:12.680 --> 00:29:15.040 So it happened to be that the numbers, 547 00:29:15.560 --> 00:29:16.800 by the way, these numbers will move 548 00:29:16.800 --> 00:29:18.120 depending on what you're doing. 549 00:29:18.120 --> 00:29:20.120 Sometimes it'll be the top right is number one. 550 00:29:20.120 --> 00:29:21.800 Sometimes the bottom left is number one. 551 00:29:21.800 --> 00:29:24.080 It doesn't matter as long as you've identified them. 552 00:29:24.080 --> 00:29:25.360 And we now know the story. 553 00:29:25.360 --> 00:29:27.560 We're gonna take each of our products 554 00:29:27.560 --> 00:29:30.760 and we're going to write in what we're doing. 555 00:29:30.760 --> 00:29:32.960 So we're gonna put all our product names. 556 00:29:32.960 --> 00:29:37.960 Here's A, here's B, here's C and D and E and F and G. 557 00:29:39.400 --> 00:29:43.440 There's all our products and we know what to do, don't we? 558 00:29:43.440 --> 00:29:45.880 First thing, kill force. 559 00:29:45.880 --> 00:29:46.760 Do what you have to do. 560 00:29:46.760 --> 00:29:48.760 Get out of that business, stop it immediately. 561 00:29:48.760 --> 00:29:51.400 It's sucking resources, it's not worth your effort. 562 00:29:51.400 --> 00:29:52.320 Let it die. 563 00:29:53.440 --> 00:29:56.840 Have the little funeral, feel bad, all that, then move on. 564 00:29:56.840 --> 00:29:57.960 Because at this point here, 565 00:29:57.960 --> 00:29:59.560 what's happening is you can't. 566 00:30:00.000 --> 00:30:05.240 Continue to grow the business without freeing up the resources to create the new products or to pivot. 567 00:30:06.320 --> 00:30:15.520 If you continually just try to do the 10% growth on a fall, what's going to happen is you're optimizing stuff that shouldn't exist. 568 00:30:16.600 --> 00:30:21.880 There are products and customers in your business that should 569 00:30:24.000 --> 00:30:24.840 not 570 00:30:25.960 --> 00:30:26.720 exist. 571 00:30:30.680 --> 00:30:32.960 This should not exist in your business. 572 00:30:34.200 --> 00:30:45.560 So get rid of those because that frees you up to now start to look at what other products and we go through the same exercise all over again. So we say, okay, we love this group. 573 00:30:46.280 --> 00:30:50.960 We know that A's we can try to reduce the effort, see if we can move them over. 574 00:30:51.600 --> 00:30:55.760 And we all we got to find ways to improve the dollars on this product. 575 00:30:56.320 --> 00:31:05.120 Or maybe we combined A and B and we package them up as a package. So you get very creative because what the four square tells you immediately 576 00:31:05.600 --> 00:31:20.720 is exactly what you need to do. Because to get an A to move left, what do I have to change? I have to change this. I have to move. That's what that means. If I'm trying to get a B to go up, what does that mean? I have to increase the dollars. 577 00:31:21.960 --> 00:31:22.800 Does that make sense? 578 00:31:23.800 --> 00:31:34.760 This simple little toy, this little exercise will change everything that you do, because what it will do for you is it will show you exactly 579 00:31:35.880 --> 00:31:51.320 how you can, let me stop sharing. Was that helpful? Yeah. Okay. How many of you have done that exercise before in your organization? Yep. Some of you have done it. Yep. And every time I do this exercise, here's the cool thing. You should do it once a year. 580 00:31:51.840 --> 00:31:59.200 I can't say I did it three years ago. Yeah, yeah, that's not good. And by the way, don't get married to the fours. 581 00:32:01.040 --> 00:32:14.600 Don't get all defensive. Oh, we got to keep the four. We started the business. Don't emotionally charge up why we have to keep the fours. The fours are what's sucking your resources and locking you down. 582 00:32:14.600 --> 00:32:20.360 Locking you down. Well, what about all the people? And I think I've shared with you before about 583 00:32:21.920 --> 00:32:37.280 and I think this is a story that Henry Cloud tells about a friend of his who bought a company that had five divisions, every single division in the company was profitable. And so he called the executives together. And he says, I want a plan on how to shut down 584 00:32:38.280 --> 00:32:57.120 four of them in the next 90 days. I don't care if we sell it, give it away, shut it down. I don't care. This is what we're going to do. Because he worked it out that in their case, there was only one in the quadrant one and all these others were quadrant fours. They were profitable with massive effort. 585 00:32:58.080 --> 00:33:14.240 So guess what happened? Overhead dropped dramatically. And they went from I think he said they went from a $50 million business to a $350 million business in like two years. Because what did he do? He got rid of the fours. The fours are eating your business alive. 586 00:33:17.480 --> 00:33:18.240 Good to go. 587 00:33:19.680 --> 00:33:21.680 It sounds mercenary because it is. 588 00:33:22.240 --> 00:33:38.800 Because you have to think about you are not serving those are not your customers anymore. Maybe you started there, but they're not your customers anymore. You found your right fit client. Now you found, you know, your core group who you should belong to. All right, let's take 589 00:33:40.000 --> 00:33:44.720 let's take any quick questions. How are we doing on questions chat? Jenny, give me an update quick. 590 00:33:45.040 --> 00:33:47.120 Yeah, Deb has a question in there. 591 00:33:47.520 --> 00:33:48.000 Yeah. 592 00:33:48.480 --> 00:33:49.280 Do you see that? 593 00:33:49.360 --> 00:33:49.840 Yes. 594 00:33:57.920 --> 00:34:07.760 Okay, I do what I'm gonna do. I will answer that question when we come back from the break. So I want to get it everybody get as much time as possible. They are worksheets. So here's the worksheet quickly. 595 00:34:08.560 --> 00:34:20.880 Quick overview on the worksheet is this worksheet is going to take time. This, this is something you may want to put more effort into as a team because the potential financial reward of this worksheet is off the charts huge. 596 00:34:21.440 --> 00:34:32.960 So the question number one is, what is your contribution? Do you know what it is right now? Do you help? Where do you help with revenue or lowering the cost of sales or expenses or whatever it is? 597 00:34:32.960 --> 00:35:00.880 How could you improve that? Exercise number two is, are you feeling like you're acting like an owner? In which ways are you? And which ways do you think you could act more like an owner? If this were your business, how would you act? If you did the same job, but it was your business? So if we took your job and turned it into an internal little business, an LLC, we registered a new little LLC for the, for the design of your business, what would you do? 598 00:35:00.000 --> 00:35:05.240 department. And now you are charging the company back and forth. How would you operate the 599 00:35:05.240 --> 00:35:10.920 business differently? And then the last exercise through is the biggie. What process improvements 600 00:35:10.920 --> 00:35:15.760 do you could you recommend? What product ideas do you have? What pivot ideas do you have? 601 00:35:15.760 --> 00:35:24.060 There's the 10% 100% 10x. I'm going to let you guys jump into your groups and Jenny take 602 00:35:24.060 --> 00:35:25.060 from here. 603 00:35:25.400 --> 00:35:30.880 Sure. Okay, so we're gonna go ahead and open up the groups. And we'll call you back here 604 00:35:30.880 --> 00:35:36.200 at 1055. If you have questions, please drop them into the chat as soon as you come back 605 00:35:36.200 --> 00:35:41.280 from the breakout room. So we can answer those in Dionne. We'll talk about devs. Yeah. All 606 00:35:41.280 --> 00:35:42.280 right. 607 00:35:42.280 --> 00:35:46.880 The co host and I will do. Thank you, Debbie. If you want to hang out, I'll answer your 608 00:35:46.880 --> 00:35:57.660 question. Okay. Okay. So why don't you tell me your question directly? And I was going 609 00:35:57.660 --> 00:36:00.100 to read it, but I'd rather hear from you. 610 00:36:00.100 --> 00:36:10.180 Okay, yeah, it was just if the if the y axis is dollars, which the way you're defining 611 00:36:10.180 --> 00:36:15.820 it is like, we make the most if, if number one is up at the top, we make the most money 612 00:36:15.840 --> 00:36:21.680 have the most. And it was just a question about the always question whether we talk 613 00:36:21.680 --> 00:36:26.160 about revenue or profit, you know, you can have a whole lot of revenue, but your internal 614 00:36:26.160 --> 00:36:33.960 costs, the cost to create the product, for example, part of the x axis, the, the, the 615 00:36:33.960 --> 00:36:40.720 effort line, I mean, that's where I put costs, and the cost to do it. And so I was just asking, 616 00:36:40.720 --> 00:36:46.700 does it make a difference if the vertical axis is profit or revenue? I would have it 617 00:36:46.700 --> 00:36:54.420 always be profit, because that shows the difference. I mean, is that, is that correct? Am I? 618 00:36:54.420 --> 00:37:00.180 Yeah, you're correct. Think of as the driver and owner of the business, what's the outcome? 619 00:37:00.180 --> 00:37:06.220 You can't spend revenue, you can only spend profit. So, so my point is, if you Yeah, I 620 00:37:06.220 --> 00:37:09.820 would definitely make Thank you. I it was a lot of text, and I hadn't had a chance to 621 00:37:09.820 --> 00:37:15.240 read it. And I didn't want everyone to wait. No worries. It was a great question, actually. 622 00:37:15.240 --> 00:37:19.160 And I will address it when everyone comes back. Yes. Look, at the end of the day, it's 623 00:37:19.160 --> 00:37:25.320 like a black box. You put effort in cash comes out, you know, how hard is it to crank the 624 00:37:25.320 --> 00:37:36.720 handle? The only cash that comes out is not revenue. So I agree. Yeah. I do that. Yeah. 625 00:37:36.720 --> 00:37:45.740 Because I managed space director, we built the command of data handling systems for satellites. 626 00:37:45.740 --> 00:37:52.660 And, and I was cleaning out an old file. And I found a chart that I drew that went from 627 00:37:52.660 --> 00:37:58.500 95 to 99. And it was when we were developing the next generation of the product. And it's 628 00:37:58.500 --> 00:38:04.700 my hand drawn, color coded program manager, you know, I was executive director at that 629 00:38:04.700 --> 00:38:11.800 time, but chart, and at the bottom of, of each year, I had like 3 million 1.7 and 1.3, 630 00:38:11.800 --> 00:38:18.320 meaning the material, the labor and the material costs, you know, to do the research. And, 631 00:38:18.320 --> 00:38:25.480 and it was just so funny to see a hand drawn, you know, a Gantt chart, or, you know, the 632 00:38:25.480 --> 00:38:30.560 program management, interdependencies, and, and typical, Deb, everything was color coded 633 00:38:30.660 --> 00:38:38.100 and going back and forth. But, but that, that product took us from 250 million to 650 million 634 00:38:38.100 --> 00:38:40.820 revenue for my division. So 635 00:38:42.940 --> 00:38:49.180 yeah, I would, one of the ways to do it is so let's just let me clarify a little more 636 00:38:49.180 --> 00:38:53.940 given what the sophistication of what you just said, and that is I would then focus 637 00:38:53.940 --> 00:38:59.100 on gross problem. So in other words, take the revenue minus the cost of sales. That's 638 00:38:59.120 --> 00:39:05.480 the number. Because you have to, you have to think, you don't control expenses, and 639 00:39:05.480 --> 00:39:10.960 expenses can throw off what you're doing. So you have to just stick to the variable 640 00:39:10.960 --> 00:39:17.520 cost, not the fixed cost. So the overhead and, you know, salaries. Yeah, yes. You can't 641 00:39:17.520 --> 00:39:21.680 bring that in. So you can't bring expenses in, but you do want to deal with the variable 642 00:39:21.680 --> 00:39:25.760 cost. So you buy the widget, you know, for a dollar, you're selling it for $3. So that's 643 00:39:25.760 --> 00:39:27.380 the $2 we're talking about. 644 00:39:28.020 --> 00:39:37.700 Right, right. So thank you. No, I just have to, as you've been going through all of this, 645 00:39:37.700 --> 00:39:42.980 you know, now I'm kind of an independent on my own consultant trying to get back into 646 00:39:42.980 --> 00:39:50.540 the space market and sell my, my process to them. But it's just absolutely, it's so much 647 00:39:50.540 --> 00:39:57.200 fun to listen to your wisdom and going, Yeah, I should have done that. Or, oh, Dionne, I 648 00:39:57.200 --> 00:39:58.240 did that. Yes. 649 00:39:59.400 --> 00:39:59.920 Yes. 650 00:40:00.000 --> 00:40:05.040 And sometimes it just gives language to what we intuitively knew to be correct. 651 00:40:05.040 --> 00:40:11.320 There's necessarily always, you know, breakthrough ideas as much as a simplification or giving 652 00:40:11.320 --> 00:40:14.400 the language or packaging it up. 653 00:40:14.400 --> 00:40:20.080 I think leadership is a lot about packaging up a framework everyone can understand quickly. 654 00:40:20.080 --> 00:40:25.320 You know, like when I draw that, we literally did that on our vacations, right? 655 00:40:25.320 --> 00:40:27.880 What was cost versus fun, right? 656 00:40:27.880 --> 00:40:32.520 With the four years in, what was high cost and low fun? 657 00:40:32.520 --> 00:40:33.520 That's a four. 658 00:40:33.520 --> 00:40:34.920 Never do those again. 659 00:40:34.920 --> 00:40:35.920 Kill them now. 660 00:40:35.920 --> 00:40:38.080 Don't repeat that vacation. 661 00:40:38.080 --> 00:40:43.640 And you can do that with the clothes you buy, the car you want to purchase, anything. 662 00:40:43.640 --> 00:40:49.360 It's just a powerful way to get you to focus on what's important to you. 663 00:40:49.360 --> 00:40:54.640 I think as a consultant, these tools are very, very powerful because they're simple. 664 00:40:54.640 --> 00:40:56.120 Hey, welcome back. 665 00:40:56.120 --> 00:41:02.360 Did you guys have a too short a conversation? 666 00:41:02.360 --> 00:41:03.360 Such a big topic. 667 00:41:03.360 --> 00:41:04.360 Go Ben. 668 00:41:04.360 --> 00:41:15.000 We are going to have a meeting Monday morning, man, after they've had some time to reflect, 669 00:41:15.000 --> 00:41:21.480 but we did have an opportunity to have a rather robust discussion around new products our 670 00:41:21.480 --> 00:41:27.000 course customers want, and also ways that we can pivot as a business. 671 00:41:27.000 --> 00:41:31.920 So that was, it was, it was quite, it was good, good participation and some good ideas. 672 00:41:31.920 --> 00:41:32.920 Excellent. 673 00:41:32.920 --> 00:41:33.920 Excellent. 674 00:41:33.920 --> 00:41:40.400 It feels a little bit like you've got 20 minutes, redefine the universe, go, you know, I get 675 00:41:40.400 --> 00:41:41.400 it. 676 00:41:41.400 --> 00:41:42.400 I get it. 677 00:41:42.400 --> 00:41:43.400 Hey, appreciate it. 678 00:41:43.400 --> 00:41:48.640 And the idea is to really get you to think and to give you simple tools to get us out 679 00:41:48.640 --> 00:41:54.480 of the emotion of my idea is better than your idea and get it down onto a map that 680 00:41:54.480 --> 00:41:57.800 we can see where it fits and then everybody can see, but that's a four. 681 00:41:57.800 --> 00:41:59.400 We don't want a four. 682 00:41:59.400 --> 00:42:05.560 And so, you know, this idea that sometimes products slide, you know, when I presented 683 00:42:05.560 --> 00:42:07.480 it, I made it sound like they're always static. 684 00:42:07.480 --> 00:42:12.200 They don't, they move, you know, things get more expensive, supplies get expensive, costs 685 00:42:12.200 --> 00:42:13.200 go up. 686 00:42:13.200 --> 00:42:16.640 And so sometimes what was a one ends up as a four. 687 00:42:16.640 --> 00:42:20.320 Dave's question that, that triggered up in the beginning of the conversation was what 688 00:42:20.320 --> 00:42:22.280 does that, what are the dollars mean? 689 00:42:22.280 --> 00:42:23.280 Is that revenue? 690 00:42:23.280 --> 00:42:24.280 Is that profit? 691 00:42:24.280 --> 00:42:26.120 Obviously we're talking about gross profit. 692 00:42:26.120 --> 00:42:28.440 In other words, take out the variable cost, right? 693 00:42:28.440 --> 00:42:33.480 So if, if, if, if you're selling widgets for $3 and they cost you a dollar, then the dollars 694 00:42:33.480 --> 00:42:36.440 we're talking about is the $2 profit. 695 00:42:36.440 --> 00:42:41.440 So where's one person said, you know, when he's, when his friend met him after 20 years, 696 00:42:41.440 --> 00:42:45.360 they hadn't seen each other and they decided to meet up after school and everywhere. 697 00:42:45.360 --> 00:42:51.320 And his friend arrives in a Rolls Royce chauffeur driven and he gets out and he's just stunned. 698 00:42:51.320 --> 00:42:52.840 He says to his friend, what are you doing? 699 00:42:52.840 --> 00:42:55.240 He said, you were the worst guy in math ever. 700 00:42:55.240 --> 00:42:59.560 He said, how did you end up with this massive Rolls Royce? 701 00:42:59.560 --> 00:43:01.360 But it's not a fantastic business. 702 00:43:01.360 --> 00:43:02.800 He said, well, tell me about it. 703 00:43:02.800 --> 00:43:04.000 He said, well, it's easy. 704 00:43:04.000 --> 00:43:08.920 I buy, you know, these pencils for a dollar and I sell them for $3 and then I just live 705 00:43:08.920 --> 00:43:10.960 off the 2%. 706 00:43:10.960 --> 00:43:12.300 So there you go. 707 00:43:12.300 --> 00:43:16.620 So you, if you can kind of wait to do that, you know, 2%, there you go. 708 00:43:16.620 --> 00:43:20.300 So math wasn't his thing clearly, but he knew how to make money. 709 00:43:20.300 --> 00:43:24.420 So what we want to do is make sure that the profits on the, on the dollar side are the 710 00:43:24.420 --> 00:43:28.380 ones that are driving your business because you can't spend revenue. 711 00:43:28.380 --> 00:43:31.540 You can only spend gross profit, right? 712 00:43:31.540 --> 00:43:39.260 So that's, you know, there's no value to, to revenue other than if it helps you scale. 713 00:43:39.260 --> 00:43:46.340 So then, yeah, Tyler, get me in on that plan. 714 00:43:46.340 --> 00:43:47.340 I love your new company. 715 00:43:47.340 --> 00:43:48.860 There you go. 716 00:43:48.860 --> 00:43:53.940 So yeah, I'm actually, I'm interested in having anybody interested in doing that. 717 00:43:53.940 --> 00:43:59.180 So we're talking, finally, this topic comes up because we're trying to scale. 718 00:43:59.180 --> 00:44:01.020 It's just exactly what we're doing. 719 00:44:01.020 --> 00:44:03.140 We're thinking about ways to do that. 720 00:44:03.140 --> 00:44:07.660 I've engaged Barry from Sage to help me with this, and I have a group in New York that 721 00:44:08.220 --> 00:44:12.460 even though, you know, the stuff yourself, sometimes you need somebody from the outside 722 00:44:12.460 --> 00:44:16.740 to look at your business and ask all the dumb questions that you should have asked, you 723 00:44:16.740 --> 00:44:17.820 know, had you thought about it. 724 00:44:17.820 --> 00:44:21.500 So what we're trying to be is that for you, we're trying to force you to rethink that 725 00:44:21.500 --> 00:44:26.820 business and get every, all, everybody thinking any questions, where is, I've been looking 726 00:44:26.820 --> 00:44:28.140 for Jenny and all this way. 727 00:44:28.140 --> 00:44:29.140 Are you there? 728 00:44:29.140 --> 00:44:30.140 You are Jenny. 729 00:44:30.140 --> 00:44:31.140 Oh, I'm here. 730 00:44:31.140 --> 00:44:32.140 There you go. 731 00:44:32.140 --> 00:44:35.140 I sort of just took over, but there you go. 732 00:44:35.620 --> 00:44:36.620 That's great. 733 00:44:37.620 --> 00:44:38.620 We're having fun. 734 00:44:38.620 --> 00:44:42.140 Well, yeah, it's a fun conversation to have. 735 00:44:42.140 --> 00:44:43.500 It's a very fun conversation to have. 736 00:44:43.500 --> 00:44:48.540 We look forward to, if you guys have questions or thoughts throughout the week as you're 737 00:44:48.540 --> 00:44:52.460 talking about this, post it in on the app in the community section. 738 00:44:52.460 --> 00:44:54.540 We'd love to hear from you there. 739 00:44:54.540 --> 00:44:56.540 This has been a really fun call. 740 00:44:56.540 --> 00:45:00.060 Way to wrap up week 30, and we'll look forward to seeing everybody. 741 00:45:00.000 --> 00:45:02.480 study next week. Bye.