Swim with the sharks without being eaten alive

SWIMWITHTHESHARKSWithoutBeingEatenAlive

Outsell,Outmanage,Outmotivate,andOutnegotiateYourCompetition

HARVEYMACKAYForewordbyKennethBlanchard

DEDICATION

Twoincrediblemenhavebeenmentorstomethroughouttheyears.Mylatefather,JackMackay,wasanexceptionaljournalistwhoseinvaluablelife-lessonshavealwaysguidedme.HeleftgiantfootstepsinwhichI’vetriedtowalk.

RudyMiller,my late father-in-law,was a one-of-a-kind entrepreneur, gentleman, andhumanitarianwhosegenuinezestforlifeenergizedourentirefamily.Therewasnobetterbusinessmananywhereinthecountry,andIstillcan’tbelieveitwasmygoodfortunetobecomehis“son”whenIfell inlovewithhisdaughter.

CONTENTS

Author’sNote

ForewordbyKennethBlanchard

Acknowledgments

CHAPTERONE“I’dLike15,000TicketsforTonight’sGame,Please”

CHAPTERTWOHarveyMackay’sShortCourseinSalesmanship

Lesson1It’sNotHowMuchIt’sWorth,It’sHowMuchPeopleThinkIt’sWorth

Lesson2ThereareObjectionstoEveryProposition,NoMatterHowAttractive…

Lesson3KnowingSomethingAboutYourCustomerIsJustasImportantasKnowingEverythingAboutYourProduct

Lesson4The66-QuestionCustomerProfile

Lesson5TheMackay66Continued:WarStories

Lesson6OnceYouAttachYourPersonalitytoaProposition,PeopleStartReacting…

Lesson7RacialandReligiousPrejudiceandHumanEnvyHaveNotBeenEliminated…

Lesson8HowtoHandletheToughProspect

Lesson9CreateYourOwnPrivateClub

Lesson10ShortNotesYieldLongResults

Lesson11TheSecond-BestPlacetoLookforNewBusiness

Lesson12WhatEverySalesperson—andNotEnoughEntrepreneurs—Know

Lesson13KeepYourEyeonYourTime,NotonYourWatch

Lesson14IfYouDon’tHaveaDestination,You’llNeverGetThere

Lesson15BelieveinYourself,EvenWhenNoOneElseDoes

Lesson16SeekRoleModels

Lesson17Fantasize

Lesson18TheEasiest,LeastExpensive,andMostNeglectedFormofAdvertising

Lesson19ShowMeaGuyWhoThinksHe’saSelf-MadeManandI’llShowYoutheEasiestSellintheWorld

CHAPTERTHREEHarveyMackay’sShortCourseonNegotiation

Lesson20SmileandSayNoUntilYourTongueBleeds

Lesson21SendintheClones

Lesson22ThereIsNoSuchThingasaSold-OutHouse

Lesson23UnderstandingYourBanker

Lesson24TheSingleMostPowerfulToolforWinningaNegotiationIstheAbilitytoWalkAwayfromtheTableWithoutaDeal

Lesson25“CallingMr.Otis”

Lesson26TheMostImportantTerminAnyContractIsn’tintheContract

Lesson27AgreementsPreventDisagreements

Lesson28TheLongerTheyKeepYouWaiting,theMoreThey

WanttoDeal

Lesson29HeWhoBurnsHisBridgesBetterBeaDamnGoodSwimmer

Lesson30MakeYourDecisionswithYourHeart,andWhatYou’llEndUpwithIsHeartDisease

Lesson31NeverBuyAnythinginaRoomwithaChandelier

Lesson32Everything’sNegotiable

Lesson33TheBuyer/SellerBattle

CHAPTERFOURHarveyMackay’sShortCourseinManagement

Lesson34TheSingleGreatestMistakeaManagerCanMake

Lesson35WhenaPersonwithMoneyMeetsaPersonwithExperience…

Lesson36You’llAlwaysGettheGoodNews;It’sHowQuicklyYouGettheBadNewsThatCounts

Lesson37ThrowItontheFloor

Lesson38TreatYourSupplierstheWayYouTreatYourCustomers

Lesson39TheTimefortheRenaissanceManWastheRenaissance

Lesson40NeverBeYourOwnHatchetMan

Lesson41OntheOtherHand,IfYouAreGoingtoBeYourOwnHatchetMan…

Lesson42LittleThingsDon’tMeanaLot;TheyMeanEverything

Lesson43HowtoSpotaWinner

Lesson44YourBestPeopleMaySpendTheirMostProductiveTimeStaringattheWall

Lesson45It’sMoreFunWhenIt’sSpontaneous

Lesson46HaveYouEverSeenaStand-UpStrike?

Lesson47ItIsn’tPracticeThatMakesPerfect;YouHavetoAddOneWord:It’sPerfectPracticeThatMakesPerfect

Lesson48TrusttheExperts…toBeWrong

Lesson49ItIsn’tthePeopleYouFireWhoMakeYourLifeMiserable,It’sthePeopleYouDon’t

Lesson50TheBestWaytoChewSomeoneOut

Lesson51NeverLetAnyone,ParticularlyaSuperstar,PickHisorHerOwnSuccessor

Lesson52GiveMoreConventionsandYouCanGiveFewerRaises

Lesson53HowManySalespeopleDoYouHave?

Lesson54GetBoredEasily

Lesson55AskanOldGrizzly

Lesson56KnowingWhenNottoWorkHardIsasImportantasKnowingWhenTo

Lesson57Owning1PercentofSomethingIsWorthMoreThanManaging100PercentofAnything

Lesson58DigYourWellBeforeYou’reThirsty

Lesson59TreatYourOwnPeopletheWayYouTreatYourCustomers

Lesson60HowtoBeFired

Lesson61YouCan’tSolveaProblemUnlessYouFirstAdmitYouHaveOne

Lesson62IfYouCanAffordtoBuyYourWayOutofaProblem,YouHaven’tGotaProblem

Lesson63“IHaveNeverSeenaBadRésumé”:JohnY.Brown

Lesson64TheAcidTestforHiring

Lesson65IfYouWanttoBeSantaClaus,YourSledBetterBeAbletoPullaTrailer

Lesson66What’stheBestWaytoSaveTime?

Lesson67Don’tGetMadandDon’tGetEvenEither

Lesson68KnowThineEnemy

Lesson69Don’tBeIntimidatedbyaReputation

CHAPTERFIVEQuickies

Quickie1GratitudeIstheLeastDeeplyFeltofAllHumanEmotions

Quickie2It’sNotYourLastGoodIdea

Quickie3BuyCheapCarsandExpensiveHouses

Quickie4HowtoGettoKnowaCelebrity

Quickie5TheBestR&DintheWorldIsNeverMoreThanaKeystrokeAway

Quickie6“NothingIsGreatertoOneThanOne’sSelfIs”—WaltWhitman

Quickie7ThereIsNoSuchThingasaBadMemory

Quickie8PutYourMemoryWhereYourMouthIs

Quickie9StaySharpbyPredictingtheFuture

Quickie10ItUsuallyPaystoLookGood,butSometimesItPaysaLotMoretoLookBad

Quickie11TakeaMultimillionairetoLunch

Quickie12It’sNotOnlyWhoYouKnow,butHowYouGettoKnowThem

Quickie13ToaNormalPerson,$10MillionWillSeemLike

Enough

Quickie14HowtoBeattheLawofSupplyandDemand

Quickie15ThereIsaPlaceintheWorldforAnyoneintheWorldWhoSays,“I’llTakeCareofIt”

Quickie16NeverGivetheSameSpeechOnce

Quickie17ThereAreTwoTimesinLifeWhenYou’reTotallyAlone:JustBeforeYouDieandJustBeforeYouMakeaSpeech

Quickie18TheBeautyofCash

Quickie19TheMeaningofLife

CHAPTERSIXHelpingYourKidsBeattheOdds

HelpingYourKidsBeattheOdds

Don’tPlanonStickingAroundJusttoCollecttheGoldWatch

FindSomethingYouLiketoDoandMakeItPay

MakeBelieveYourParentsAreRightSomeoftheTime

There’sNoFutureinSayingItCan’tBeDone

It’sHardertoBeaSuccessWhenYourParentsAlreadyAre

CHAPTERSEVENTheCloser:HowtoSucceed

HowtoSucceed

Determination+Goal-Setting+Concentration=Success

SearchableTerms

AbouttheAuthor

Praise

OtherBooksbyHarveyMackay

Copyright

AboutthePublisher

AUTHOR’SNOTE

Timingiseverything.

Peoplegoaroundalltheirlivesasking,“WhatshouldIbuy?”“WhatshouldIsell?”

Wrongquestions!

Theyshouldbeasking,“WhenshouldIbuy?…WhenshouldIsell?”

Timingiseverything.

SoitwaswithSwimwiththeSharksWithoutBeingEatenAlive.Thisbookhitanerve—anervethatresonatedaroundtheworld.Sinceitspublicationbackin1988,SwimwiththeSharkshasexplodedontothescenein35languages.Ithaspenetrated80countries.And,ithassold4millioncopies.

SharksiscurrentlyusedinhundredsofuniversitiesacrosstheUnitedStates.Businessschoolprofessorssingleitoutasthedefinitivetextbookforwhatisn’tandcan’tbetaughttostudentsinbusinessschools.Theclergyhaveembracedthebookforitsemphasisonpositivegoalsandconstructivevalues.Thousandsofcorporationsuseitasapowertoolintrainingtheirsalesforces.Governmentagenciesandnon-profitshavefounditunrivaledinenergizingbureaucraciesandgivingthementrepreneurialattitudes.

Allwellandgood.But,thereisonefactoflifethatwecan’tignore.

Allwellandgood.But,thereisonefactoflifethatwecan’tignore.

Sharkschange.

It’soneofthelawsofevolution,inescapableanddeadlytoavoid.Ifyoudon’tkeeppacewiththatchange,youaresuddenlysharkbait,notsharkproof.Muchhaschangedintheworldofbusinessinthepastfifteenyears:

Secretariesoncehandledtheofficecomputers…andthen,onlyaswordprocessors.Nowcomputerliteracyisamanagerialsurvivalskillandanautomaticjobexpectation.Managershandlecoffeecupsontheirownnowtoo.Secretarieshavebecomeextinct,exceptatthehighestlevels,wheretheyaretrueassistants.Starbuckshasbecomethecorporatecoffeepot.Millionsofpeoplehavebeenthevictimsofmergers,acquisitions,consolidations,downsizings,restructurings,reorganizations,andso-calledright-sizings.Thosewhoareunpreparedtocompetearemorevulnerablethanevertopredatorsouttoeliminateyourjob.MillionsofotherjobshavebeenoutsourcedabroadtoIndiaandIreland,ChinaandChihuahua.Thereisnosuchthingasahometeamadvantageonthecompetitiveplayingfieldanymore.TheBureauofLaborStatisticstellsustoday’sgradswillface10.3jobchangesintheirlifetimes.Thatdoesn’teventakeintoaccount5careerchanges!Lifetimeeducationandlifelongadaptabilityareparamounttosurvival.

Thosearejustsomeofthecolossalchanges.Therearehundredsmoreintechnology,marketing,humanresourcemanagement,andalltheothercriticalmanagementdisciplines.

That’swhythisneweditionofSwimwiththeSharkshasaddedimportantadviceon:

PersonalnetworkinginthePCandnotebookage.Usingsharperandupdateddatabasestotrackcustomersandcompetitors.Employingstate-of-the-arttechnologytosavetimeandtoreach

outtoothersbetter.Recognizingthenewpersonalmodelsthatareshapingmanagementbehavior.Andknowingthebehaviorsthatworkandareacceptedinup-to-datecompanies.

Thatsaid,thereissomethingelsethatistrueaboutsharks.Theyareabout400millionyearsold.Thegoodnews:mostoftheirevolutionstoppedacouplehundredyearsago.Whileyouhavetobeonthelookoutforthosenewsharkskills,mostofwhatyouhavetobeworriedaboutisunchanging,basicsharkmaneuvers.ThisistheheartofSwimwiththeSharks.Letmementionjustafewofthoseskillsthathavestoodupoverthelastcenturies,letalonethepastfifteenyears:

“TheMackay66”(Lesson4)hasbeenconsideredthemosteffectiveandefficientprofilingtechniqueyetdevisedtocollectandstorerelevantdataoncustomersandprospects.Ifyouwantthetake-homeofthebookinonekeykernel,nibbleherefirst.CEOsworldwidehavetoldmethissimpledevicehasrevolutionizedtheirbusiness.TheMackay66wasaforerunneroftheInformationAge’sdatacollectionfeedingfrenzy.Whatdoesitstilloffer?Aperspectiveandafocusforcollectingandusingthatdata.“Peopledon’tcarehowmuchyouknowaboutthemoncetheyrealizehowmuchyoucareaboutthem”(also,Lesson4).That’stheflipsideofpossessingallthisdetailedinformation.Ifyouputittothebestuseofthecustomeraswellasyourself,youcreateclassicwin-wins.“Smileandsaynountilyourtonguebleeds”(Lesson20)and“Thesinglemostpowerfultoolforwinninganegotiationistheabilitytowalkawayfromthetablewithoutadeal”(Lesson24).Timeandagain,Istillreadadviceabouthowtomakeadeal.RarelydoIseetipsaboutwhennotto.Oneofthelessonsagreatdealmakerlearnsiswhennottomakeadeal.Itellpeople,“Itisn’tthepeopleyoufirewhomakeyourlifemiserable;it’sthepeopleyoudon’tfirewhomakeyourlifemiserable”(Lesson49).WhenIsaythis,IgetmoreAmensthanaBillyGrahamsermon.Andifyouwanttosurviveintoday’s

cutthroatworld,youbetterlearntofireothersintelligentlyandethicallyifyouhopetosurvive.“Makeyourdecisionswithyourheart,andwhatyou’llendupwithisheartdisease”(Lesson30).Thetruthabides:Nevermakeasignificantdealonthespurofthemoment.Thereisnomorecertainrecipefordisasterthanadecisionbasedonemotion.“Hewhoburnshisbridgesbetterbeadarngoodswimmer”(Lesson29);“Takeamultimillionairetolunch”(Quickie11);“It’snotonlywhoyouknowbuthowyougettoknowthem”(Quickie12).Iusedtosaythatnetworkingisthemostunderratedmanagementskill.NowIbelieveitmaybethemostimportantmanagementskill,barnone.

So,that’sthelayoutforSwimwiththeSharksin2005.Foryourconvenienceandinstantuse,eachofthequestionnairesincludedinthisbookcanbefoundanddownloadedfrommywebsitewww.mackay.com.

Happy,safe,andsuccessfulswimming!

—HarveyMackayDecember2004

FOREWORDbyKenBlanchard

Ifyou’vejustopenedthisbooknotknowingwhattoexpect,you’reinforabigtreat.SwimwiththeSharksWithoutBeingEatenAliveisnotoneofthoseuselesscollectionsofworn-outbusinessschoolwisdom,butanextraordinarytreasurechestofinformationyoucanapplyimmediatelytoyourbusiness,yourlife,yourrelationships,andyourgoals.Ihavemixedfeelingssayingthisbecauseonepartofmewantseveryonetolearnfromtheinsights,genius,andcreativityI’vecometoloveaboutHarveyMackay,whileanotherpartwantstohoardtheinformationformyself.Instrivingtobuildmyowntrackrecord,I’mconvincedifIweretheonlypersonaroundwhohadthisbookI’dlapthefield.Iknowyouwillnotwantyourcompetitiontogettheirhandsonthiswonderfulbook.

What’ssospecialaboutthisbook?Plenty!HarveyMackayhasputtogetheracollectionofunforgettablelifelessons—quick,to-the-pointparablesandprinciplesthatwillbeinvaluabletothenoviceandtheveteranalikeatanypointintheirbusinessorpersonallives.You’regoingtohavefuncomparingyourfavoritelessonswiththoseofotherswhohavereadthebook,whethertheybebusinesscolleagues,friends,orfamilymembers.

Whataremyfavoritelessons?Theirtitlesalonewillgiveyouatasteforthevivid,commonsensicalwisdompresentedhere:

SmileandSayNoUntilYourTongueBleeds.

MakeDecisionswithYourHeart,andWhatYou’llEndUpwithIsHeartDisease.SomethingI’veknownallalongbutcouldn’tputintowords.TheBestWaytoChewSomeoneOut.Whenheabsolutelyhastotakesomeonetothewoodshed,Harveypreferstohandthemthepaddleandletthemdoitthemselves.Heseatsthemintheboss’schairandasks,“Allright,Jack,whatwouldyousayifyouwereme?”I’vetrieditafewtimesanditworksbetterthanaOne-MinuteReprimand,butdon’ttellanybody.66ThingsYouOughttoKnowAboutYourCustomers.Everyonetalksaboutstickingclosetothecustomer,butHarveyMackaydoesit.Hekeepsafileoneverycustomerinwhichherequireshissalespeopletoanswer66questionsaboutthatcustomer—everythingfromtheircollegealmamatertotheirfavoritehobbytotheirspouse’sandchildren’snamesandaccomplishments.Harveyknowsmoreabouthiscustomersthantheyknowaboutthemselves…andcertainlymorethanthecompetitiondoes!You’lllovethe“Mackay66.”HelpingYourKidsBeattheOdds.Thechapterthattakesthisextraordinarybookoutoftherealmofthe“businessbook”andmakesitabooktosharewithyourkids,ofanyage,touchingeverypartoftheirlives.Mackayevenhasoneruletosuggesttokids:Makebelieveyourparentswererightsomeofthetime.

YoumightbewonderingwhyyoushouldlistentoHarveyMackay.Who’she?Well,he’sawiseman—asupersuccess.He’samanwho:

Asavolunteer,servedasthecatalystforaphenomenalcommunityeffortthatculminatedinthebuildingofthe$75millionHubertH.HumphreyMetrodomeinMinneapolis.HealsohasraisedmillionsofdollarsforeverythingfromtheAmericanCancerSocietytosendingtheUniversityofMinnesotaBandtoChina.Asabusinessman,isfounderandchairmanofthe$100millionMackayEnvelopeCompany,whichisamarketingandprofitabilitystandard-setterfortheindustry.Asaloyalalumnus,talkedLouHoltzintocomingtoMinnesotatocoachandturnaroundtheGophersfootballprogram.Andina

decisivecoup,heraised$6millioninamatterofdaysforaticketbuyoutthatkepttheTwinsmajor-leaguebaseballteaminMinnesota.

FortunemagazinecalledHarveyMackay“Mr.Make-Things-Happen.”USATodaysaid,“Mackay’sstyleismajorleague.”AMinnesotanewspaperreferredtoHarveyMackayas“TheUltimateVolunteer.”LouHoltz,nowtheUniversityofSouthCarolinafootballcoach,claims,“WhenIcameuphere[TwinCities]andthewind-chillfactorwasaboutfiftydegreesbelowzero,Harveysoldmesixrefrigerators.”Allthis,andHarveyMackay’sgoalsinlifearetobeagoodhusband,agoodfather,agoodbusinessman,andanactiveparticipantinthecommunity.

HarveyMackayhasdoneitall,andhehasgivenusachronicleofthesuccessstrokesandsurvivaltactics,learnedoverthreedecades,thathaveledtomanyaccomplishments.Butreadthebook,andgetbetteratwhateveryoudo—theMackayway.You’llenjoylifemore,andyoumightbesurprisedtofindyourmostextravagantdreamsbecomingrealities.

Thanks,Harvey!

—KENNETHBLANCHARDCoauthor,TheOneMinuteManager

ACKNOWLEDGMENTS

ManypeoplehavehelpedmewithSwimwiththeSharks.IfI’velearnedjustonethingfromwritingit,it’sthatIcouldnothavedoneitalone.

Myveryspecialthanksgotomysister,MargieResnickBlickman,whohasbeenmysoundingboardandprojectassistantforover20years.

SeveralpeoplehelpedinthisupdateofSharks,includingGregBailey,myexecutiveassistant,andnumberoneguy;RonBeyma,researcherextraordinaire;MaryAnneBailey,asuperlativeproofreader;andKathyHanlin,myadministrativeassistant.

AdrianZackheim,SeniorEditoratWilliamMorrow,improvedthemanuscriptimmeasurably.Ienjoyedhisprofessionalism,hispoiseunderpressure,andhisfriendship.

EveryoneatMorrowhasbeenhelpful.I’despeciallyliketothankLarryHughes,AlMarchioni,SherryArden,TomConsolino,SusanHalligan,LelaRolontz,LisaQueenandWillSchwalbe.AtHearst,BoydGriffinwasavitalally.

EdwinTantappedSharksfortheHarperBusinessEssentialsseries,andtheentireHarperBusinessteamhascreatedanewhomeforitinthenewcentury.

SomanyotherpeoplewereinvolvedinthecreationofthisbookthatI’dlike

toelaborateontheirspecialcontributions,butI’mtoldthatabookcannotconsistofacknowledgmentsalone.Nonetheless,IamgratefultothefollowingpeoplefortheirpartinSharks:MyagentJonathonLazear,MarcJaffe,MarilynCarlsonNelson,VickieAbrahamson,LynneLancaster,MartinLevin,DaveMona,NancyDoran,CarolPine,BarryMcCool,andDavidMartin.

KenBlanchardprovidedhiskeenwisdomandbookpublishingexpertisethroughouttheprocess.I’mgratefulforhisthoughtfulforeword,andI’mindebtedtoKenforhisfriendshipandsupport.

Mostofall,I’mgratefultomywife,CarolAnn,whoseintelligence,creativityandsupporthavehelpedmeincountlesswaysinthewritingandpreparationofSharks.Icouldnothavedoneitwithouther.Andthanksandlovetomychildren,David,MimiandJoJo,whoprovidedtheperspectiveforsomuchofthisbook,especiallythechapter,“HelpingYourKidsBeattheOdds.”

AndonelastthankstothepeopleatMackayEnvelope,whoswimwiththesharksdaily,andwhohaveprovidedmewiththeexperiencesthatarethefoundationofthisbook—andoursuccess.

CHAPTERONE

“I’dlike15,000TicketsforTonight’sGame,Please”

ThefifteenminutesoffamethatthelateAndyWarholpromisedeachofuscametomeinthespringof1984.IwasthepointmaninanationallypublicizedefforttooutflankCalvinGriffith,theowneroftheMinnesotaTwinsbaseballteam.GriffithwantedtosellhisballclubtoagroupofFloridabusinesspeoplewhowouldhavemovedtheTwinstoTampa.Anothergroup,consistingofTwinCitiespeople,withwhichIwasinvolved,wantedtokeeptheclubthere,underlocalownership—andseetoitthatwedidn’tgetcaughtupinaveryexpensivebiddingwar.

UnlikeCalvin,wehadasecretweapon:BillVeeck.

Incaseyoudon’tknowwhoBillVeeckis,hewasthemanwho,in1951,asownerofthehaplessSt.LouisBrowns,stagedaninnocent-appearingpromotionthatsoupsetthebaseballestablishment—andsoendearedhimtobaseballfans—thatforaslongasthegameisplayed,hewillberememberedasthemanwho“sentamidgettobat.”

Atthreefeet,seveninchesandsixty-fivepounds,EddieGaedel,ordinarilyavaudevilleperformer,gavetheBrownsoneoftheirraredistinctions.HewasthefirstandonlycertifiablemidgettoappearinaMajorLeagueBaseballgame.Fortherecord,hewalkedonfourstraightpitchesanduponreachingfirstbasewasreplacedimmediatelybyapinchrunner.Truetoform,therunnerwasstrandedonthirdandtheBrownslostthegame.ButfromtheuproarVeeckhadcreatedyouwouldhavethoughthe’dcalledBabeRuthatransvestite.

Veeckalsooperatedfivebaseballclubs,threeinthemajorsandtwointhe

Veeckalsooperatedfivebaseballclubs,threeinthemajorsandtwointheminors,wonpennants,setmajor-leagueattendancerecords,wasthepromotionalgeniuswhohelpedinnovatebatnight,glovenight,fanappreciationnight,players’namesonuniforms,explodingscoreboards,theivy-coveredwallsoftheWrigleyFieldbleachers,theexpansionofthemajorleagues,theunrestricteddraft,andsuchyet-to-be-adoptedproposalsasinterleagueplay.

Inaword,hewasavisionary.Inanotherword,hewasamaverick.MyfirstcontactwithVeeckwassimpleenough.Ipickedupthephoneandcalledhim.Veeckpridedhimselfonbeingtotallyaccessibletoanyone.Unlikemostclubowners,Veeckroamedthestands,schmoozingwithhiscustomers,insteadofhidingoutinaprivatebox,àlaSteinbrenner.Veeckhadopinionsonjustabouteverything,andhelovedtolaythemonanyonewhowouldlisten.

AsthesituationintheTwinCitiesbegantounfold,IfoundmyselfcallingVeeckalmostdaily.Here’swhatwewereupagainst:GriffithhadanescapeclauseinhisstadiumleasethatpermittedhimtocanceliftheTwins’attendancedidnotreach4.2millionfansoverathree-yearperiod.Thankstoaninferiorproduct,attendanceovertheprevioustwoyearshadbeensobadthatbytheendofthe1984seasontheTwinswouldhavehadtodraw2.4milliontoreachthe4.2milliontotal.However,ifthetotalwasreached,Griffithwouldbeboundtohislease,andtoMinnesota,forthreemoreyears.

Thoughhe’dbefreeonceagaintoleaveaftereachthree-yearstint,heknewandweknewthatoncehehadannouncedhisdesiretoleave,thealreadydisgruntledfanswouldturnonhisshoddyproductwithavengeance,andhewouldbeforcedtoendureanotherthreeyearsofhorrendousattendanceandredink.

So,unwillingtospendthemoneynecessarytoimprovetheteam,hewasdeterminedtosell.JustasweweredeterminedtoseethattheTwinshit2.4millioninattendancein1984.Andhehadonlyonegrouptosellto:us.

Ourproblemwasthat2.4millionwasanalmostimpossiblegoal.Veeckhadsetamajor-leaguerecordthatstoodforfifteenyearswhenhedrew2.8millionwithapennant-winningclubinCleveland.Lessthanamonthintothe1984season,itwascleartheMinnesotaTwinsweregoingnowhere.

ConfidentthattherewasnothinganyoneinMinneapolisorSt.PaulcoulddotobindGriffithtohislease,inlateApriltheFloridagroupendearedthemselvestoGriffith.Theyaccomplishedthisbyriddinghimofalongtimeantagonist,

toGriffith.Theyaccomplishedthisbyriddinghimofalongtimeantagonist,GabeMurphy,whentheyboughtMurphy’s43percentminorityinterestintheclubfor$11million.

Griffiththenannouncedthathewasopentoalloffersforhismajorityinterestaslongastheywereforatleast$50million,whichiswhatthepennant-contendingDetroitclubhadjustsoldfor.CalvinthensatbackwaitingforthebiddingwartounfoldbetweenTampaandMinnesotafortheremainingstock.

Whathehadn’tcountedonwasthetenacityoftheTwinCitiescommunityandthelongmemoryofBillVeeck.Twenty-fiveyearsearlier,Veeck,astheowneroftheChicagoWhiteSox,hadvotedatanAmericanLeaguemeetinginfavorofGriffith’smoveoftheWashingtonSenatorsfranchisetoMinnesota.Inexchange,VeeckfelthehadanagreementfromGriffithtosupportVeeck’sbidforanexpansionfranchiseinnewlyvacatedWashington.ToVeeck’smind,Griffithrenegedonthedealwhenhevotedforanothergroup.ItwasanactVeeckwouldnotforget.Hedevotedanentirechapterofhisautobiography,VeeckasinWreck,toGriffithianduplicity,atopicthatalsoincludedanotherancientwoundinflictedyearsearlierwhenGriffith’suncle,ClarkGriffith,supposedlyrenegedonapromisetoletVeeckmovetheBrowns’franchisetoBaltimore.

WhatVeecktoldmewasthatifwecouldmountabuyoutofTwinsticketssufficienttoboost1984attendanceto2.4million,Griffithwouldcaveinandselltousatourprice,knowingthatiftheclubcouldn’tbepackedofftoTampa,thefanresentmentoverhisthreatenedmovewouldbesogreathecouldn’taffordtooperateitanylonger.

“Calvincan’ttakethepressure,”saidVeeck.“Hecouldn’ttakeitwhenhisfamilytwistedhisarmtovotetheWashingtonfranchisetotheirbuddy,GeneralQuesada,in1961,andIamconfidenthewon’tfightonceheseesyou’vegotthefinancialmuscletobackupaticketbuyout.”

Maybe.Butitwasabiggamble.

Griffithwasgettingcuteandclaimingthatthe2.4millionhadtobeactualfansinattendance.Evengivingawaythetickets,wecouldn’tguarantee2.4millionwouldactuallypassthroughtheturnstiles.Scarierstill,the$6millionweraisedfromwithinthecommunitywasn’tnecessarilyenoughmoneytoguarantee2.4millionattendance,livefansornot.Sixmilliondollarswould

purchaseonly1.4milliontickets.Itmightnotbeenough.Wecouldneverbesurehowdeepthewellwas,becauseunlessanotheronemillionfanswerewillingtopayoutoftheirownpockets—forticketsnobetterthantheonesweweregoingtogiveawayfree—we’dfallshortofthe2.4million.

ButIbelievedVeeck,whohadbeendreamingaboutgettingevenwiththeGriffithsforaquarterofacenturyandprobablyknewhisoldadversarybetterthananyoneelseonearth.

SoIhelpedputtogetheragroupofinfluentialsupporters,heldpressconferencesalloverthestate,setupofficestobuyanddistributethetickets,andonedayinMaywalkeduptotheTwinsticketboothintheHubertH.HumphreyMetrodomewithacadreofreportersandannouncedtotheyoungladybehindthecounter,“I’dlikefifteenthousandticketsfortonight’sgame,please.”

Fromthenon,itwaseasysledding.IneverreallyknewifIcouldhavegonebacktooursupportersformoremoneyifweneededit,butwhatwehadwasenoughtoconvinceCalvinthattheracewasonandhe’deitherhavetoselltousorwatchhissinglegreatestassetwashawayinaseaofredinkoverthenextthreeyears.

HesoldtoMinneapolisbankerCarlPohladforanamountconsiderablylessthanthe$50milliontheDetroitteambrought,orthe$32millionthattheClevelandclubhadsoldforaboutayearlater.(Ofcourse,theaveragevalueofaMajorLeagueBaseballfranchisehasskyrocketedinrecentyearstomorethan$260million,withthepin-stripedYankeesworthseveraltimesmorethanthat.)

Afterthat,PohladeasilyarrangedthepurchaseoftheminoritysharesheldbytheTampagroup,andthatwastheendoftheGriffithera.

Veeck?Hedidn’tgetanickeloutofit,noreveronceseehisnameinthepaperinconnectionwiththeproceedings.Themanwhomotherownershadderidedforyearsasapublicityhoundhadnodesiretotakecreditforavictoryhehadmasterminded.Hewascontentsimplytobaskintheknowledgethathehadevenedanoldscore.

Unbelievably,ittookonlythreeyearstoprovethewisdomofouractionsandtoday,asIwritethis,anewerahasblossomed.

ThankstotheaggressivemanagementofthePohladorganization,forthe

firsttimeinthehistoryofthefranchise,attendancehitovertwomillionastheTwinsachievedwhathasbeendubbed,“TheImpossibleDream.”Evennow,asdebatesoveranewstadiumcontinue,attendanceremainsveryclosetothatmark.Withtheturnofthemillennium,theTwinscapturedafewdivisionalchampionships,andtheyareagainintheAmericanLeagueplayoffsinthefallof2004.

October1987willalwaysberememberedasthemonththeMinnesotaTwinsastoundedtheirloyalandlong-sufferingfansbywinningtheAmericanLeaguePennanttomakeittotheWorldSeries—andthenstunnedthenationbywinningtheseriestobecometheworldchampionsofbaseball.Atthebeginningoftheseason,LasVegasbookmakerssettheoddsagainstthathappeningat150–1.ThephenomenalascentoftheTwinsfromlastplacetoworldchampionsignitedanexplosionofpride,unity,andgoodwillthatenergizedtheentireupperMidwestandproducedincalculableeconomicresults.

BillVeeckdidmorethanacquaintmewiththeweirdeconomicsofMajorLeagueBaseball.Healsotaughtmealessonthatappliesinawiderangeofbusinesssituations.

Mostbusinessproblemscanbesolvedifyoucanteachyourselftolookbeyondthedollarsign.Businessrevolvesaroundhumanbeings.We’renotallinitforthebuck.FighttrainerGilClancyexpressesit,naturally,insock-in-the-eyefashion.“ThereasonIstayinthisgameafterthirtyyearsisn’ttogetrich.It’stogeteven.”

Ittakesallkinds,friends.That’swhynoonehasalltheanswers.Whatthisbookoffersisnothowandwhattobuycheapandselldear.Instead,I’mgoingtotrytohelpyoumakemoneybygivingyouabetterunderstandingofpeople.

ThefirstlessonIofferisoneofthefirstIlearnedwhenImademyfirstbusinessdeal.IwaselevenyearsoldandI’dwonaprizeforsellingthemostticketstotheSt.PaulSaintsopeningbaseballgame.Thisentrepreneurialcoupwasscoredbytellingmyfriendsthatiftheyboughttheirticketsfromme,Icouldgetthemintothelockerroomtomeettheballplayers.Itshouldhavebeeneasy.Afterall,astheAssociatedPresscorrespondentintown,myfatherkneweveryballplayerontheteam.

Unfortunately,Ihadn’tbotheredtoaskhimaboutitbeforehand.Thedayofthegame,hewascoveringapoliticalrallyinMinneapolis(inthosedays,

thegame,hewascoveringapoliticalrallyinMinneapolis(inthosedays,reporters,likedoctors,weregeneralists),andevendoingmybest“JackMackay’sson”number,thoughIcouldseethewholeteamsittingthereintheirskivviesdrinkingbeer,Icouldn’tbluffmywaypastthemanattheclubhousedoor.

Imadeithomeinonepiece,butmycredibilitywithmyfriendswaszero.Totopitoff,mybigprizeforsellingthemostticketsturnedoutnottobesuchabigprizeafterall.Itwasaseason’spass,justthekindofperkmyfathercouldhavehadfortheasking.

ThatintroductiontotheworldofmarketingtaughtmeacoupleoflessonsmanyadultslearnatamuchhighercostthanIhadtopay.Anyonecangettheorderifhe’swillingtostretchthetruthfarenough.Whetheryoutellthetruthornot,youdon’tcomeoutawinnerjustbygettingthatfirstbigorder.Themarkofaproisgettingthereorder.Intheadvertisingbusiness,theyputitalittledifferently:“Creativewins’em;accountserviceloses’em.”Ilearnedsomethingelsethatday:Theclubhousemenoftheworldarejustwaitingforachancetokickyouintheass.Youmaynotbewatchingthem,butthey’rewatchingyou,andthemorearrogantyouare,whetheryou’reaneleven-year-oldkidorsomeself-importantbusinesstype,thebettertheoddsthey’llfindawaytogeteven.

Nowyou’regettingthepicture.

Whatyouaregoingtoreadaboutfromnowoninthisbookisn’talaundrylistofkillerclosinglinesandsplit-secondwitticismsthatlandedthebigfish.

It’showthebigfishgottobethatwayandhowyoucanbeone,too.

CHAPTERTWO

HarveyMackay’sShortCourseinSalesmanship

Lesson1

It’sNotHowMuchIt’sWorth,It’sHowMuchPeopleThinkIt’sWorth

Aspeakerisintroducedtoaroomfulofpeoplewhohaveneverseenhimorheardhimbefore.Hebeginshispresentationbyreachingintohispocket,holdsupatwenty-dollarbill,andsays,“Thistwentyisforsaleforexactlyonedollar.Whowantstobuyit?”

Now,behonest.Wouldyouleaptoyourfeetclamoringtogethisattention?Orwouldyouwaitafewseconds,seewhateveryoneelsedoes,andthenafterahandortwogoesup,timidlyraiseyourown?

Ifyou’reoneofthehesitators,you’renormal.We’vebeentaughtallourlivesthatonlysuckersfallfordealslikethat.Butoncesomeoneelseiswillingtotakeachance,onnobetterinformationthanours,thenourgreedylittlehandspopup,andwetendtogoalong.Thefasterothers’handsareraised,thegreaterthedemand,andthemorelikelywearetobepartofit.Oursenseofwhatsomethingisworthderivesnotfromtheintrinsicvalueoftheobjectitself—whetherit’stwentiesforadollarorunusualtulipbulbsorararegem—butfromthedemandthathasbeencreatedforthatobject.

Okay,yousay,that’sMarketing101.Everyoneknowsthat,butwhatdoesithavetodowiththerealworld?

Agreatdeal,itturnsout.

I’dliketotellyouastoryaboutfouroftherichestmeninNorthAmericawhoabsolutelydidnotunderstandthisverysimpleconcept.

Maybewecanlearnsomethingfromit.

Thescene:thesuburbs.Themostvaluablepropertyinthestate(andpossiblyinthecountry),fiftyacresofprimesuburbanrealestate,becomesavailablefordevelopmentwhenweteardownouroldsportsstadiumandbuildanewonedowntown.Enter:fourbrothersnamedGhermezian—fourmenfromEdmonton,Canada,bywayofIranwhobecamerichfirstasrugmerchantsandthenasreal-estatedevelopers.TheirgreatestachievementtodateistheWestEdmontonMall,theworld’slargest.TheMallofAmericaishardlyyour“run-of-the-mall”malleither:TheGhermeziangimmickinvolvesnotonlysheersize(hundredsofshops,services,restaurants,etc.)butalsoacompleteentertainmentcomplex,2½-acreindoorlake,twenty-five-rideamusementpark,andthelavish$50millionFantasylandHotel.TheGhermezianscallthismall“theEighthWonderoftheWorld,”andhundredsofthousandsoftouristsagreewiththem.TheMallofAmericaistodaysaidtoattractmorevisitorseachyearthantheGrandCanyon,Graceland,andDisneylandcombined.

TheGhermezianbrothersmakeaterrificoffer.Theywanttobuildontheoldstadiumsitea$1.5billiondevelopmentthatwillprovidefortythousandnew,nonsmokestackjobsatunionwages,utilizeavacantpieceoflandthat’snotgeneratinganickel’sworthofjobsortaxes,andattractmillionsofvisitorstothestateeveryyear.

Thegovernorisdelightedwiththeirideaandisreadytocallaspecialsessionofthelegislaturetopassthetax-highway-improvement-etc.packagethatwillgivetheGhermezianproposalagreenlight.

Itsoundslikeexactlythesortofprojecteverystateinthecountryisdyingfor.(Infact,afewmonthsbeforetheGhermezianscameonthescene,thestatelegislaturefelloverbackwardanddideverythinginitspowerinanunsuccessfulbidtoattractanewGeneralMotorsSaturnautomobileplanttothestate—amuchlessattractivefacilitythanthefourreal-estatemogulswereproposing.)TherearenocatchestotheGhermezianproposal.Theirrequestsforlegislativeassistanceandtaxreliefarefairlyreasonable,theyhavesolidfinancialbacking,andtheyhaveareputationfordoingexactlywhattheyproposetodo.

Yetinaboutasmuchtimeasittakestosay“theAmazingGhermezians,”

Yetinaboutasmuchtimeasittakestosay“theAmazingGhermezians,”doorafterdoorisslammedintheirfaces,andthegovernorquicklybackpedalsandwithdrawshissupport.Itisalltheresultofasimplemistakeinthepublic-relationsapproachtothedeal:Inordertosupplysomething,youmustfirstcreateademand.

Icouldstandonastreetcorneralldaylongwithtwenty-dollarbillsforsaleatadollarapieceandonlymanagetogetarrested.Whowouldbelievethatanyonewouldmakesuchafabulousoffer?Theremustbeacatch.IftheGhermezianshaddonewhatGeneralMotorsdidafewmonthsearlier—announcethattheywouldbuildtheirfacilityinthelocationthatofferedthemthebestdeal—insteadofofferingussuchagooddeal—wewouldhavefallenalloverourselvestoattractthem.Wewouldn’thavetobetoldwhytheirproposalwasattractive.Wecouldtellourselvesbecauseotherswerecompetingforit.It’sthesameoldlessonHuckFinntaughtTomSawyerahundredyearsago.Butmaybethetaleofthepaintingofthewhitepicketfencewasn’tincludedintheGhermezians’childhoodbedtimestorybook.

Marketingisnottheartofselling.It’snotthesimplebusinessofconvincingsomeonetobuy.Itistheartofcreatingconditionsbywhichthebuyerconvinceshimself.Andnothingismoreconvincingthanhardevidencethatotherswantthesamething.

Lesson2

ThereareObjectionstoEveryProposition,NoMatterHowAttractive;GoodSalespeopleSetUpSituationsWheretheCustomerSellsHimself,RegardlessoftheObjections

TheJapanesehaveaverysimplewayofdescribingthetypicalAmericanmarketingplan:READY?FIRE!AIM.

ApparentlythatwasalsotheGhermezianapproach.Theycouldhaveaskedthemselvesafewsimplequestions:WhatisitIamselling?HowdoIcreateademandforit?WhoamIsellingittoandwhatdotheyreallywant?Insteadtheysimplyplungedinandbeganpitching.Let’sseewhattheendresultmayhavebeenhadtheGhermeziansdoneitdifferently.

Weretheysellingamall?No.Jobsandtaxrevenues?Partly.Braggingrightstosomethingsomeoneelsewants?Mostly.

Thiskindofselling,wherethecustomermustqualifytogettheproduct,isthesalesman’sdream.Andit’stheonlywayyoucansellproductsthathavelimitedintrinsicvaluebutgreatsnobappeal.

YouthinkI’mtalkingaboutoverpricedimportedcarsandjewelry?Notreally.Thosehaveprettysmallpricetagswhenyoucomparethemwithsomeofthereallyexpensivetoys,likereal-estatedevelopmentsandmajor-leaguefranchises.Thereisnopurelyeconomicjustificationforthehugeexpendituresmadebyindividualsandcitiesintentoncapturingthesecrownjewelsofconspicuousconsumption.Whatvaluedoyouplaceonegooruniqueness?

conspicuousconsumption.Whatvaluedoyouplaceonegooruniqueness?

WhichisjustthekindofsituationthatGMsetupwiththeSaturnplant.

Ifyou’retheGhermezians,howdoyoucreatethesamekindofdemand?

First,bystayinginEdmonton,thatmysteriousandexotichomeofhighfinanceandintrigue,ratherthanshowinguponthefirstplane.GeneralMotorsofficialsdidnottravelaroundthecountrytoselltheirproposition.TheymadeannouncementsfromDetroitandstoodbackwhiletheircustomerscametothem.GMunderstoodthenecessityofcreatingaclimatewherethecustomersbecametheirownsalesmen,andGMbecameakindofrefereedecidingwhowouldbeawardedthesale.(It’stoobadGeneralMotorsneverlearnedtomakeorselltheSaturncarbetterthantheysoldtheSaturnplant.AccordingtotheDetroitNewsin2004,“Saturnrepresentedabout6percentoftheGMvehiclessoldintheUnitedStates,andithasmademoneyinonlyoneofthelast13years.”)

Now,whydidn’tfourshrewdbusinessmenliketheGhermeziansseethatwhentheydecidedtomaketheirmove?Whydidtheysimplyblunderonstagewavingtheirtwenty-dollarbillsinfrontofaskepticalaudience?

Foronething,theythoughtthatiftheyhadthesupportofthegovernor,thatwouldbeenough.

Wrong.

Theyforgottoasktwoadditionalquestions:Whoaremyrealcustomers?Whatisittheyreallywant?

Theygotpartoftheanswerright:Thepoliticiansweretheirultimatecustomers.Thepoliticiansaretheoneswhowillapprovethefinancingandincentivepackagesthatmakesuchdealswork.Oncethatapprovalisgained,everythingelseissimplymechanical:howmuchtochargepersquarefoot,howmanyadvertisingdollarsareneededtolurethenecessarycustomers,andsoon.Buttogettothepoliticians,youmustunderstandhowtomotivatethem.Intheireagernesstogetthedecision-makerstocastthevotes,signthepapers,andsmileforthecamerassothebusinessofdevelopingtheprojectcouldproceed,theGhermezianslostsightoftheircustomers’realneeds.TheGhermezians’customers,thepoliticians,hadcustomersoftheirown.Thepoliticiansbegantogetconcerned.Weretheygivingtheircustomers,thevoters,somethingthey

reallywanted,somethingthatwouldmakethemvoterightagainatthenextelection?Here’swherethenextpartofthebillion-dollarblunderwasmade.

Lesson3

KnowingSomethingAboutYourCustomerIsJustasImportantasKnowingEverythingAboutYourProduct

Takepoliticians,forexample.Apoliticianwillsupportyourpropositiononlyaslongasitispoliticallypopularoruncommonlyrewarding.

Thatisn’ttosaythatpolsareanylesshonestorreliablethantherestofus.It’sjustthatpoliticiansmustshiftpositionsconstantlytokeepupwiththepeopletheyaresupposedtobeleading.Legislators,particularlyinfarawayplacessuchasWashington,tendtobealittlelessreliablethangovernors,whoareundercloserlocalscrutiny,butthesameprincipleholds.Itisthedutyofsomeonewhowantssomethingfromapoliticianeitherto(a)createthepublicclimatethatmakessupportingthatpositionattractive,or(b)dowhateverisnecessarysothatapoliticowillreturnafavorfromtimetotime—likefundraisingorevenorganizationalwork.

Beforeyouchooseonetacticortheother,youhadbetterbecertainwithwhomyouaredealing.Inthiscase,thegovernorwasthetypeofpoliticianwhothoughthehadsomethinghisconstituentswouldtrulywant.TheGhermeziansandthegovernorbothwentpublictogether,andwhenitbecamerapidlyapparentthatthebrothershadnotcreatedtheproperclimateofpublicopinion,thegovernorbackedoff.

TotheGhermezians’credit,theyfinallygotthemessage,hiredlocallobbyists,andputthepiecesbacktogether.Afterhavingaskedforseveral

hundredmilliondollarsatthelegislatureandgettingcompletelyskunked,theygothelpatthemunicipallevel.Thecurrentscaled-downversion—callitaminimega-mall—couldhavebeenevenbigger.Infact,theGhermezianscreatedthe5.3-million-square-footWestEdmontonMallinAlberta,Canada,thelargestshoppingcenterintheworld,startingin1981.

Identifyingthecustomerdoesnotmeanthatyoumakeyourpitchdirectlytothatcustomer.Sellingthegovernorinthiscasewaseasy…tooeasy.WhattheGhermeziansshouldhavedonewasfirstbuildasupportstructureof“influencers”aroundthatgovernor—thepress,theunions,popularopinion,hisownparty,andsoon—beforepitchingthemainman.ThatinvolvesaprofessionalPReffort:storiesextollingtheiralreadysuccessfulmall;leaksaboutcompetingcitiesplottingtosweeptheGhermeziansintotheirfold;orchestrateddemandfortheproductfromleadingopinion-makers.Noneofthisgroundworkwaslaid.Unfortunately(fortheBrothersGhermezian),oncethegovernordiscoveredhehadnocrew,itwastimetoabandonship.

AtMackayEnvelopeCompany,youwouldn’tbelievehowmuchweknowaboutourcustomers.TheIRSwouldn’tbelievehowmuchweknowaboutourcustomers.Alloursalespeopleonourstafffillouta66-questionprofileofeachoneoftheircustomers.We’renottalkingaboutthecustomer’stasteinenvelopes,either.Wewanttoknow,basedonobservationandroutineconversation,whatourcustomerislikeasahumanbeing,whathefeelsstronglyabout,whathe’smostproudofhavingachieved,andwhatthestatussymbolsareinhisoffice.

Whenyouknowyourcustomers,someoftheirspecialinterestsorcharacteristics,youalwayshaveabasisforcontactingandtalkingtothem.Ihaveacustomerwho’sadevotedChicagoCubsbaseballfan.TheCubs’failuretomakeittothetopcontinues.That’susuallygoodforatleasthalfadozencondolencemessagesayear.Idon’tsittherescribblingnotesaboutthelatestfashionsinenvelopes.IwriteabouttheCubs;hewritesabouttheenvelopes.

Ihaveanothercustomerwho’sastampcollector.NomatterwhereIgo,allovertheworld,Isendhimunusualandexoticstamps.Ithinkhemustlikethat.He’sbeenacustomerfornearlyfortyyears,andinallthattime,I’vemethimonlyonce.

Knowingyourcustomermeansknowingwhatyourcustomerreallywants.Maybeitisyourproduct,butmaybethere’ssomethingelse,too:recognition,

Maybeitisyourproduct,butmaybethere’ssomethingelse,too:recognition,respect,reliability,concern,service,afeelingofself-importance,friendship,help—thingsallofuscaremoreaboutashumanbeingsthanwecareaboutmallsorenvelopes.

Lesson4

The66-QuestionCustomerProfile

It’scriticaltoknowaboutyourcustomer.We’veseenthefollyofnothavingthatknowledge.Ifbusinesspeopleassophisticatedandresource-deepastheGhermezianscanmakethatmistake,socanwe.Armedwiththerightknowledge,wecanoutsell,outmanage,outmotivate,andoutnegotiateourcompetitors.AmIover-promising?

Notifyoubelieve,asIdo,inthevalueofinformation.

Allofusgatherdataaboutotherpeople—especiallypeoplewewanttoinfluence.Theonlyquestionishowwellweunderstanditandwhatwedowithit.

ForanyonewhofeelsthatthiskindofreconnaissancesmacksofBigBrotherism,rememberthetruthaboutbuyers:Theycomeprewiredtoregardyourpropositionwithsuspicionandcynicism.That’stheirjob.

It’syourjobasasalespersontoneutralizethesefeelingssoyourproductcangetthefairhearingitdeserves.

Ifsellingwerejustamatterofdeterminingwho’sgotthelowbid,thentheworldwouldn’tneedsalespeople.Itcouldallbedoneoncomputers.The“Mackay66”isdesignedtoconvertyoufromanadversarytoacolleagueofthepeopleyou’redealingwithandtohelpyoumakesales.

People,notspecs,willalwaysbethekeyindeterminingwhogetsthesale.AsLeeIacoccasaid,“Anyonewhodoesn’tgetalongwithpeopledoesn’tbelonginthisbusiness,becausethat’sallwe’vegotaroundhere.”

That’sexactlywhyIdevelopedthe66-questioncustomerprofile.Yes,whatwe’retalkingabouthereisfillingoutaform.Itdoesnotcomeasnewstomethatpeopledon’tliketofilloutforms,orthatsalespeopleareworsethanmostthatway.SalespeopleareBigPicturetypes,refugeesfrommathematics,operatingstrictlyfromtheright/creativesideofthebrain.Iunderstandthat.Iacceptthat.Thisformisdesignedwiththoseattitudesinmind.

Collectingthisinformationiseasierthanyoumightthink.Takethelastpage,themostimportantpartoftheMackay66.Customersareremarkablywillingtosharetheirmanagement’sgoalsandissueswithyou.But,salespeoplebeingsalespeople,youoftenjustignoreit.Thestandardattitudeisthatanypieceofpaperthatisn’tasignedorderisn’tworthreading.I’veseenthatindifferenceintheglazedstareofathousandsalespeople,butawarenessoftheinformationinthe66—andknowinghowtouseit—arewhatdistinguishtheprosfromtheWillyLomans.

Sodon’tbeturnedoffbecauseI’mofferingyouaform.Itisn’tthattoughtouse.You’reprobablydoingalotofitalready,andtheMackay66willjusthelpyousystematizeyourinformationinawaythatwillmakeitmoreusefulandaccessible.

Thoughmostoftheinformationwillcomefrompersonalcontactwithyourcustomerandfromobservation,youdon’thavetobethesolecollector.Yourresourcesare:

Customers Internetdatabase

Suppliers —GeneralPress

Banks —FinancialPress

Internaldatabase —TradePress

Colleagues —TradeAssociation

Colleagues Association

Conventionalmedia —SpecialReports

Assistants

Receptionists

Andthisistheshortlist.

Inourshop,eachofusscansthelocalpapers,TheWallStreetJournal,andTheNewYorkTimesdaily.AnythingthatrelatestoourtoptwentycustomersisaMustReadforanyoneconcernedwiththeaccount.

Thevalueofthe66isn’tlimitedtosalespeople.Asinanybusiness,salespeopleleave.The66isawaytopreventtheiraccountsfromleavingwiththem.Itgetstheirsuccessorupandrunningwithadecidedtimingedge,amuchshorterlearningcurvethanwouldbenecessaryifthesalespersonhadtostartfromscratch.

Becauseit’sallthereintheinternaldatabase,theMackay66alsohelpswhensalespeopleandsalesmanagersarediscussingcustomers.

Twocautionarynotes:It’sachangingworld,sothe66hastobeupdatedcontinually;and,becauseofthekindofprivateinformationthatoftenwindsupinthesequestionnaires,theyhavetobegivensecurestorage,withonlynumberedcopiesandnodupesfloatingaround.Forthefirsttenyearsweusedthisprocess,IwouldtakehomethefilesonourtoptenaccountseverySundaynightanddrilltheinformationintomyheaduntilIknewitbyrote.AlthoughIdon’tdothatanymore,onceayearourmarketinggroupandourtopoperatingpeoplesitdownandreviewthematerialwithspecialemphasisonthefinalpage.Thisanalysisofcommoncustomerissuesisthelaunchingpadforourplanningprocess.Ofcourse,allthisdatacannowbeburnedontoasingleCD-ROM.Or,itcanbepulleddownfromthefiles.Thisisbothanenormousconvenienceandafrighteningsecurityrisk.Bedarnedsurethatyouhavethesafeguardsinplacetoprotectaccesstofileslikethese.

Nowyouknowhowitworks.Thequestionyou’reprobablyaskingis,“Does

itwork?”Readthe66now,andthenletmetrytoanswerthatquestion.

MackayEnvelopeCompany66-QuestionCustomerProfile

Date__________________

Lastupdated____________

By____________________

Customer

1.Name________________________Nickname______Title_________________________________________________2.Companynameandaddress

___________________________________________3.Home

address_________________________________________4.Telephone:Business_______________Home

______________5.Birthdateandplace___________Hometown

______________6.Height_________________________Weight

______________Outstandingphysicalcharacteristics________________________________________________________________(Examples:balding,greatcondition,arthritis,severebackproblems,etc.)

Education

7.Highschoolandyears__________________________________College______________________________________________Graduatedwhen_________________Degrees______________

______________8.Collegehonors__________Advanceddegrees

______________9.Collegefraternityorsorority

____________________________Sports_______________________________________________10.Extracurricularcollege

activities__________________________11.Ifcustomerdidn’tattendcollege,ishe/shesensitive

aboutit?_____________________________________________________Whatdidtheydoinstead?_______________________________12.Militaryservice____________Dischargerank

______________Attitudetowardbeingintheservice_______________________

Family

13.Maritalstatus______Spouse’s/Partner’sname______________14.Spouse’s/Partner’seducation

_____________________________15.Spouse’s/Partner’sinterests/activities/affiliations

____________16.Weddinganniversary

___________________________________17.Children,ifany,namesandages

_______________________________________________________________________________Doesclienthavecustody?_______________________________Moreandmore,childrendonotcomefromtraditionalfamilystructures.Notesonparents,names,etc.________________________________________________________________________18.Children’seducation

___________________________________19.Children’sinterests(hobbies,problems,

etc.)________________

BusinessBackground

20.Previousemployment:(mostrecentfirst)

Company_______________________________

Location_____________________________

Dates_____________________Title______

Company_________________________________

Location_______________________________

Dates____________________Title________

21.Previouspositionatpresentcompany:Title________________Dates:_______________________________________________22.Any“status”symbolsinoffice?

___________________________23.Professionalortradeassociations

_________________________Officeorhonorsinthem________________________________24.Anymentors?

_________________________________________25.Whatbusinessrelationshipdoeshe/shehavewith

othersinourcompany?____________________________________________26.Isitagoodrelationship?____________Why?

___________________________________________________________________27.Whatotherpeopleinourcompanyknowthe

customer?_____________________________________________________28.Typeofconnection

____________________________Natureofrelationship___________________________________________29.Whatisclient’sattitudetowardhis/hercompany?

________________________________________________________________

________________________________________________________________30.Whatishis/herlong-rangebusinessobjective?

___________________________________________________________________31.Whatishis/herimmediatebusinessobjective?

___________________________________________________________________32.Whatisofgreatestconcerntocustomeratthistime:

thewelfareofthecompanyorhis/herownpersonalwelfare?____________33.Doescustomerthinkofthepresentorthefuture?

___________Why?________________________________________________

SpecialInterests

34.Clubsorserviceclubs(Rotary,Kiwanis,Greenpeace,AmnestyInternational,etc.)__________________________________________________________________________________________35.Politicallyactive?___

Party______________________________Importancetocustomer_________________________________36.Activeincommunity?______________How?

______________37.Religion________________________Active?

______________38.HighlyconfidentialitemsNOTtobediscussedwith

customer(forexample,divorce,memberofAA,etc.)______________________________________________________________________39.Onwhatsubjects(outsideofbusiness)does

customerhavestrongfeelings?_____________________________________________

Lifestyle

40.Medicalhistory(currentconditionofhealth)_______________41.Doescustomerdrink?Ifyes,whatandhowmuch?

___________42.Ifno,offendedbyothersdrinking?

________________________43.Ifthecustomerdoesn’tsmoke,howstrenuously

43.Ifthecustomerdoesn’tsmoke,howstrenuouslydoeshe/sheobjecttobeingaroundpeopleorinplaceswheresmokersare?_____________________________________________________44.Favoriteplacesforlunch___________Dinner

______________45.Favoriteitemsonmenu

______________________________________________________________________________________46.Doescustomerobjecttohavinganyonebuyhis/her

meal?_____47.Hobbiesandrecreationalinterests

_____________________________________________________________________________Whatdoescustomerliketoread?(includingfavoritewebsites)_____________________________________________________48.Vacationhabits

________________________________________49.Spectator-sportsinterest:sportsandteams

______________________________________________________________________50.Kindofcar(s)

_________________________________________51.Conversationalinterests

________________________________52.Whomdoescustomerseemanxioustoimpress?

__________________________________________________________________53.Howdoeshe/shewanttobeseenbythosepeople?

___________54.Whatadjectiveswouldyouusetodescribe

customer?_____________________________________________________________55.Whatishe/shemostproudofhavingachieved?

__________________________________________________________________56.Whatdoyoufeeliscustomer’slong-rangepersonal

objective?_____________________________________________________57.Whatdoyoufeeliscustomer’simmediatepersonal

goal?___________________________________________________________

TheCustomerandYou

58.Whatmoralorethicalconsiderationsareinvolvedwhenyouworkwithcustomer?___________________________________59.Doescustomerfeelanyobligationtoyou,your

company,oryourcompetition?__________________________________________Ifso,what?___________________________________________60.Doestheproposalyouplantomaketohim/her

requirecustomertochangeahabitortakeanactionthatiscontrarytocustom?_____________________________________________________61.Ishe/sheprimarilyconcernedabouttheopinionof

others?_________________________________________________________62.Orveryself-centered?______Highlyethical?

______________63.Whatarethekeyproblemsascustomerseesthem?

_______________________________________________________________64.Whataretheprioritiesofthecustomer’s

management?____________________________________________________________Anyconflictsbetweencustomerandmanagement?___________65.Canyouhelpwiththeseproblems?___How?

___________________________________________________________________66.Doesyourcompetitorhavebetteranswerstothe

abovequestionsthanyouhave?________________________________________HaveyoudoneaGooglesearchofthecustomerontheWeb?_____________________________________________________Areimportantpiecesofdataattached?_____________________

FurtherNotes:

_____________________________________

_____________________________________

_____________________________________

_____________________________________

_____________________________________

_____________________________________

MackayEnvelopeCompany

Minneapolis,Minn.

HarveyMackay

©1988

Lesson5

TheMackay66Continued:WarStories

Flipbacktothe66andlookatquestion5,“Birthdateandplace———Hometown———.”“So,”yousaytoyourself,“Mackaycounselssendingcustomersabirthdaycard?Bigdeal.”Waitaminute.Sure,thecustomergetsabirthdaycard.Butthere’smore.Rememberaskidswehadanintuitionnevertoaskforsomethingifourfolkswereinaterriblemood.Butwhenwesensedtheywerecontent,we’dhitthemupforwhateverthemarketwouldbear.Timing’severything,isn’tit?Atourcompany,wehaveourcustomers’birthdaysoncomputer,andtheygetabirthdaycard,ofcourse.Butguesswhat?Thatbuyeralsogetscalledoninperson—andaskedouttolunch—whenthatspecialdayoftheyearrollsaround.

It’snottoosurprisingoccasionallytoseeoursalesbreakthesoundbarrieronthesamedayourcustomeriscelebratingabirthday.Asforthehometownofthebuyer—it’sthesourceofanendlesssupplyofnewsclipstomailin.Andyoudon’tevenhavetoclipthemyourself.Ifit’sworthittoyou,subscribetoaclippingservice—orpickupthathometownpaperoccasionally.TobearmedwithknowledgeaboutHometown,U.S.A.,givesyouasubjectcustomerscantalkabouteightdaysaweek.

“Education.”Questions7–12.OnedayIcalledonabuyerwho,itturnedout,hadgraduatedfromthesamehighschoolIdid—aboutfifteenyearsearlier.WebothhadthefabledMissMalmonforEnglish.Theyarnswetoldwerefabulous;theenvelopesheboughtwereevenmorefabulous.Ifigureditouttheotherday.Thisbuyerhaspurchasedover150millionenvelopesfromme.Iwonderwhy.

Thisbuyerhaspurchasedover150millionenvelopesfromme.Iwonderwhy.

“Family.”Questions13–19.Iluckilyoverheardabuyer’ssecretaryonthephonearrangingtohavehertwelve-year-olddaughterdriventohergymnasticsevent.Obviously,Iaskedaboutthedaughter.SuddenlythereIwas,watchingtheMightyMitecompeteintheparallelbarsevent.Amonthlater,afterhavingbroughtmyselfuptospeedingymnastics,Imentionedittothebuyer—andgotmyfirstorderthesameday.

“Businessbackground.”Question22.“Any‘status’symbolsintheoffice?”isagoodquestiontokeyon.IcalledonaFortune500companyinNewYork—havinglearnedthatthemostimportantreadingasalespersoncandoistoreadthewallofhisprospect’sofficewhilewaitingforhimtogetoffthephone—andnoticedapictureofthecompanypresidentawardingthebuyeracertificateforwritingapositionpaperonunemployment.AweeklaterIsenthimabookonunemployment.Theordershaveneverstoppedcoming.

“Lifestyle.”Questions40–57.Ticketstothegamearealwaysagoodice-breaker,particularlyifyougowiththecustomer.Anddon’ttakeitforgrantedwe’rejusttalkingaboutmenhere.

I’dbeencallingonapurchasingagentinChicagoforthreeyearswithouthereveronceevenaskingmetoquoteajob.

Ifoundoutshewasawrestlingfan.

OvernightIbecameawrestlingfan.Ipoppedintoheroffice,toldherIhadgreatcontactsforringsideticketsto—yes,thiswasmanyyearsago—GorgeousGeorgeandwouldshecaretogoorhavememaketheticketsavailablesoshecouldgowithsomeoneelse?

Itwasarealstruggleforhertoaccept.Shewasn’tnaïve,sheknewIwastryingtocaptureherbusiness,butthelureofringsideseatswastoomuchtoresist.Thoughshedecidedtoaccept,sheinsistedonpayingforthetickets.

Threeyearsofhardworkwithnoresults—andtobetruthful,ittookanotheryearbeforesheevenaskedmetobidajob—andtwomorebeforewegotanorder.Sixyears.Butitwasthe66thatdidit,andthebusinesswe’vedonesincethenmadeitworththewait.

Thepayoff:Theproofisintheenvelope.NottheMackayenvelope.Thepay

Thepayoff:Theproofisintheenvelope.NottheMackayenvelope.Thepayenvelope.MackayEnvelope’ssalespeopleearnmorethandoubleourindustry’snationalaverage.There’sjustonereason:theMackay66.

P.S.IfIhadbeenmakingthesameapproachtoday,itwouldhavebeenbyInternet.I’dregularlybesurfingtheWebforhotdataonprowrestling.(Thereare10.4millionentriesfortheword“wrestling”ontheInternet.)I’dfindoutthelatestscooponstarslikeRicFlairandTripleHandbebouncingattention-gettinge-mailstotheprospectofftheturnbuckles!

InAugust2004,IwasplayinginthecelebritygolftournamentwiththeHollywoodiconRobert(RJ)Wagner.Ihadnevermethimbefore.Tenminutesbeforeteetime,IgotintouchwithmyexecutiveassistantGregBaileyonmycellphonefromthegolfcourse.Inseconds,GreghadGoogledWagner.Onthefirsthole,whenRJandImet,Iwasabletolistoffhismovies,includinghisroleasNumberTwoinAustinPowersinGoldmember.Ontheseventhandeighthholes,Iwasabletoaskabouthisthreedaughters—Kate,Natasha,andCourtney.RJwasfloored.ThepointisthattheMackay66ismorerelevantandimportantthaneverbefore,butitisalsomuch,muchfaster.(Nottomentionlessexpensive!)Peopleattheheadoftheclassknowhowtopresstherightbuttons…andthosebuttonsaretobefoundonthekeyboardofyourcomputer.

Lesson6

OnceYouAttachYourPersonalitytoaProposition,PeopleStartReactingtothePersonalityandStop

ReactingtotheProposition

Lesson7

RacialandReligiousPrejudiceandHumanEnvyHaveNotBeenEliminatedasoftheDateofPublicationofthisBook

Mostsalesmanualswilltellyouthatthemostimportantthingyouaresellingisyourself.Thisbookwon’t.Inmyopinion,sellingyourselfcansometimesbeaverybadidea…becauseveryoften,myfriend,youandIarelousyproducts.

Ourchallenge,whetherwearesalespeopleornegotiatorsormanagersorentrepreneurs,istomakeothersseetheadvantagetothemselvesinrespondingtoourproposal.Understandingoursubjects’personalitiesisvital.Letthemshine.Ourownpersonalitiesaresubordinate.

Highprofilesfitmostbusinessmenlikeacheapsuit.Yes,IknowDonald

Highprofilesfitmostbusinessmenlikeacheapsuit.Yes,IknowDonaldTrumpisnoshrinkingviolet,andheseemstobedoingallright.You’renotDonaldTrumpandneitheramI,andneitheraretheGhermezianbrothers.GeneralMotorsgotstatelegislatorsacrossthecountrytodosomersaultsfortheirSaturnproposal,inpartbecausethecompanymanagedtohidebehinditscorporateidentitythroughouttheentireprocess.Therewerenoindividualswithstrange-soundingnamesorfunnyaccentsorhugepersonalwealthforthepresstotakepotshotsat.Justalarge,well-known,amorphouscompany.Whoarethosepeople?Noonereallyknew,andtheystoodabetterchanceofgettingwhattheywantedthatway.

Inthe“goodolddays,”salesmenwerematchedtotheethnicmakeupoftheirclientele.YousentyourIrishsalesmenouttocallonIrishcustomers;Jewishsalesmen,Jewishcustomers,andsoon.That’schangedabit.Assomeminoritieshavebecomemoresecure,shrewdsalesmanagersrecognizethatcustomerswhoformerlywereservicedalongstrictethniclineswanttosignaltheirgroup’sacceptanceintothemainstreambydealingwithpeoplewhodonotreflecttheirownbackgrounds.Okay,thosepeoplegetservicedbynot-whatever-the-customer-happens-to-betypes.Buteachcaseisdifferent.That’swhyatmycompanyweputalotofthoughtintoanalyzingourcustomersbeforewedecidewheretoplacethataccount.

Ifyouaren’tsureofyourcustomers,stayhomeandhiresomeonewhoknowstheterritory.Sometimesyou’llfindthatyourprospectsaremorecomfortableandreceptivearoundpeoplewhosestylesarelocal.Forinstance,peoplefromtheprestigecitieslikeNewYorkandSanFranciscotendtofeelthatnooneknowsasmuchaboutanythingastheydo.Afterall,ifwehadanytalentthat’swherewe’dbeliving,wouldn’twe?WhyshouldtheylistentosomeonefromPeoria?Ontheotherhand,thoseofusfromlessercitiesoftentendtobeinaweoftheout-of-townexpert,thedefinitionofanexpertstillbeinganyonefrommorethanfiftymilesaway.Inthosecasesyouhavetobepreparedtodazzlebytossingtheproperlyelegantandaloofthree-piece-suitersintothemix.

There’sacorrectapproachforyoursalessituation,whetherit’shiringtherightspokesperson,operatingbehindthecorporateveil,orcreatingdemandforyourproposition.Thekeyisknowingyourcustomer,notjustmarchinginandofferinganobjectivelyattractivedeal.

Lesson8

HowtoHandletheToughProspect

Nowthatyouknowwhatcangowrong,andsomeofwhatyouneedtoknowtomakeitright,it’stimeyoulearnedsomeofthewaysyoucanusetheinformationyou’vewon.

Mydefinitionofasalespersonisnotsomeonewhocangettheorder.Anyonecangettheorderifhetellsenoughlies—forexample,aboutpriceordeliverytime.

Agreatsalespersonissomeonewhocangettheorder—andthereorder—fromaprospectwhoisalreadydoingbusinesswithsomeoneelse.

Itallstartsoutwiththesalescall.Ihavenevermadeacoldcallinmylife.BeforeIseeanyoneonasalescallforthefirsttime,IseetoitthatI’mintroduced.Thesalesperson’sclassicdilemmaissetoutinanaddonemorethanahalf-centuryagobyMcGraw-Hilltopromote—whatelse—advertising.Itpicturesagreen-eyeshade,rolltop-desk-typecurmudgeonfacingthereader,whoiscastintheroleofthesalesman.TheToughProspectsays:

Idon’tknowwhoyouare.Idon’tknowyourcompany.Idon’tknowwhatyourcompanystandsfor.Idon’tknowyourcompany’scustomers.

Idon’tknowyourcompany’sproducts.Idon’tknowyourcompany’sreputation.Now—whatwasityouwantedtosellme?

Ifyou’resellingforabigoutfit,aMicrosoft,yourintroductionismade,inpart,bythecompany’sadvertising,marketing,andpublic-relationsprogram.Microsoft’ssolidreputationisapowerfulsilentsalespersonthataccompanieseverysalescall.

Ifyou’renotsellingforaMicrosoft,youneedanothereffectiveentry.Thebestisarecommendationfromoneofyourowncustomers,someonealreadyknowntoyourprospect.

Likemostsalespeople,I’vespentalifetimetryingtobuildanetworkofcustomersandfriendswhowillgivemealineofcommunicationintoalmosteveryofficeinmycity.

Therearetwowaystodoit:retailandwholesale.Retailmeanstheone-at-a-timekindofcontactsthatarebuiltupthroughparticipationincommunityorsocialactivities.Wholesalemeanstherecognition,andacceptance,extendedbypeoplewhodon’tknowyoupersonallybutwhohaveheardaboutyouasaspeaker,readyourarticles,orreadaboutyourcivicactivitiesinthepapers.

Eithermethodcanhelpbreakdowntheclassicbarrierstoacoldcall.

WhenIdon’thaveapersonalentry,thereareothertacticsIfallbackon.Believeme,collectingthiskindofdatahasbecomealoteasierandcheaper.I,forexample,usedtobuyoneshareofstockinacompanyjusttoreceivetheirannualreport.Nowyoucanobtaintheannualreportofnearlyanypubliccompanyonline.Youcancollecthugeamountsofdataonprivatefirmstoo.Startyoursearchenginetoriches.Hoover’sandDun&Bradstreetareonlinewithup-to-dateinformation.Stillstymied?Pickupyourcellphoneandphoneyourbanker,lawyer,oraccountant.(Yousaytheyaren’tsupposedtodisclosethiskindofinformation?Well,ifyou’retalkingabouttheirclients,theyaren’t,butit’sallrightifthey’retalkingaboutsomeoneelse’s.)Youcanevencheckprospectsoutthroughother,noncompetitivesuppliers.

Somewherewithinsixblocksofeverycompanyisafavoredwateringhole.Iknowofonesalespersonwhohasdevelopedthetechniqueofwaitinginhiscaracrossfromtheprospect’sparkinglotonFridayafternoonsforthefive-o’clock

acrossfromtheprospect’sparkinglotonFridayafternoonsforthefive-o’clockwhistleandthenfollowingtheprocessiontothesaloonofchoice.Whateveritishewantstoknow,whetherit’saboutaprospectoracompetitor,canusuallybeuncorkedinthisconvivialatmosphere.HesayshehasperfectedtheabilitytoloseconvincinglyineverybarsportinAmerica:pool/shuffleboard/pinball/“andI’mstillworkingondarts.”

Armedwitheitheryourannualreport,yourprospect’s,orboth,youarenowinapositiontowritetheToughProspect,tellhimhowgoodyouroutfitis,readhimbackenoughabouthisowntodemonstrateyou’vedoneyourhomeworkandaskforanappointment.

Naturally,thewholeheapendsupintheroundfile.You’renotdoneyet.You’reabouttocalltomakeanappointmenttoseetheToughProspect.Yourcallisansweredbythecompanyreceptionist.YoudonotaskforMr.T.P.Yousay,“I’mgoingtoaskyouinamomenttoconnectmewithMr.T.P.’soffice,butbeforeIdo,couldyoukindlyremindmeofthenameofhisassistant?”Shewill.ThenaskhertoconnectyouwithMr.T.P.’soffice.

“Hello.Angela?I’mHarveyMackay,presidentofMackayEnvelopeCompany[Straighttoherbrain.Whoisthisguy?Howdoesheknowmyname?HaveImethim?]I’vewrittenMr.T.P.withinthepasttwoweeks,andnowI’mcallinghimfromMinneapolis.IwouldliketoseeMr.T.P.Iwouldliketoseehimforexactlythreehundredseconds.IwillgoasfarasGuamorSriLankajustforthepurposeofseeinghimforthosethreehundredseconds,andifItakeanylonger,I’lldonatefivehundreddollarstoT.P.’sfavoritecharity…whichIbelieveistheRedCross,isn’tit?”

Whenyou’vedoneyourhomework,whenyou’velookedupyourprospectinWho’sWho,anddonesomereconnaissancewithhissuppliers,thenyouknowyou’reright.Andwhatanimpressionitmakes.

Thepropositionisintriguingenoughsothatitgenerallyworks.Willthishard-chargeractuallygetinandoutinfiveminutes?

Thetruthis,Inevertakethefullfiveminutes.Isimplyintroducemyselfandsay,“Asyoumayknow,we’rebiddingonyourcontract.Ijustcameheretotellyou,aspresidentofMackayEnvelope,thatweregardyourbusinessassignificant.Ifwearefortunateenoughtoreceiveyourbusiness,I’lltakeapersonalinterestinseeingtoitthatyouwillreceivetheserviceandcrafts-manshipyouhaveeveryrighttoexpect.”That’sit.

manshipyouhaveeveryrighttoexpect.”That’sit.

Inandoutintwoandonehalfminutes.AndIfollowupwithapresignedletterpostmarkedthatdayfromMinneapolisthankinghimforhistimeandrestatingthesamepitchIgavehiminperson…andifitseemsappropriate,areceiptforacheckfor$100tohisfavoritecharity.“IjustwantedyoutoknowIpromisedAngelaI’dsendacheckfor$500toyourfavoritecharityifIwasn’toutofyourofficeinfiveminutes.EventhoughImadethedeadline,I’vealwaysbeenanadmireroftheRedCrossandhavesentthemasmalldonation.”

Doesitalwayswork?No.Doesanything?

ButitworksbetterthananythingelseI’vetried.Onefinalwrinkle.If“Angela”won’tmaketheappointmentforyou,trytogetT.P.tocallbackbysaying,“Angela,evenifhewon’tseeme,perhapshewilltalktome.Iamgoingtobeinmyofficeatthefollowingtimes:twoP.M.tothreeP.M.today;eightA.M.tonoontomorrow.”Andsoon.Theninstructyourassistantasfollows:“WhenandifMr.T.P.callsatanyofthesetimes,you’retosay,‘Oh,yes,Mr.T.P.,he’sbeenexpectingyourcall.I’llputyourightthrough!’”

Youdon’thavetoconfinethatdevicetoT.P.’s.Anyoneyou’replayingtelephonetagwithwillappreciateknowingwhenhecanreachyou,soleavethetimesaspartofyourmessage,andmakesureyourassistantisinonit,soshecanmakeafussoverthecallerandcallhimbyname(“…I’llputyourightthrough!”)whenhedoescallback.

Allright,you’vedoneallthat,you’vetalkedtoT.P.,you’vesenthimlittlelovenotesfortwoyears,mailedhimamillionboxesofapricotsfromTheFruitoftheMonthClub,andyoustillhaven’tgottenevenawhiffofanorder.Sowhat?Bepatient,youwill.Youhavepositionedyourselfinthebestpossiblespotyoucanbein:NumberTwo,andaverystrongNumberTwo,becausenoone,includingNumberOne,isgoingtohalfthetroubleyouaretokeepthisaccountawareofyourinterest.

Politiciansknowthatbeingafront-runnercanbeaveryvulnerableposition.FormerVermontgovernorHowardDeanwasashoo-infortheDemocraticpresidentialnominationin2004.Weekslater,afteradismal0–18recordinDemocraticcaucusesandprimaries,DeanwasbootedoutoftheracebyJohnKerry.Ifthefront-runnerstumbles,itisNumberTwowhoistheretopickupthevotes.

You’vegotsomethingelsegoingforyou,too.ConsiderforamomenttheLawofLargeNumbers.Anentireindustry,insurance,hasbeenbuiltonthatoneprinciple.Thereare295millionlivingAmericans.Theinsurancepeoplecantellyouwithinone-fourthofonepercentjusthowmanyofusaregoingtodiewithinthenexttwelvemonths—andhow—andwhere—andinwhatagebracket,sex,color,andcreed.That’sprettyamazing.Theonlythingtheycan’ttellusiswho.

ApplytheLawofLargeNumberstoyourprospectlist.PositionyourselfasNumberTwotoeveryprospectonyourlist,andkeepaddingtothatlist.Icanpromiseyouthatifyourlistislongenough,therearegoingtobeNumberOnesthatretireordieorlosetheirterritoriesforahundredotherreasonsandsuccumbtotheLawofLargeNumbers.WhatIcan’ttellyouiswhichone.Butfortunately,asintheinsurancebusiness,“whichone”doesn’tmatter.AllthatmattersisthatyouhavetheperseveranceandpatiencetopositionyourselfasNumberTwotoenoughdifferentpeople,andtheLawofLargeNumberswilldoforyouwhatithasdonefortheinsuranceindustry:Youwillbeanextremelysuccessfulandwealthysalesperson.Ifyou’restandingsecondinline,inenoughlines,soonerorlateryou’regoingtomoveuptoNumberOne,andtheamazingthingisthatnooneelseeverusesthisstrategy.Itworksnotjustinbusinessbutinyourpersonallifeaswell.

Lesson9

CreateYourOwnPrivateClub

Countryclubsandbusinessclubs,withselectivemembershipsandtheirowndiningandathleticfacilities,existforonereason:tocreateanatmospherethatmakesiteasiertodobusiness(andsurviveforoneother:thetaxlaws).Let’ssayyou’reentertainingcustomersinatownwhereyoudon’tbelongtoaclub.Howdoyougiveyourselfthepatinaofrespectabilityaclubimpartsandcreatethatcozy,clublikeatmosphereinaplacewherenobodyknowsyou?

Easy.

Thebestway,ofcourse,istogetsomeoneyouknowintowntoletyouusetheirclubandsignatabinthemember’sname.That’sawhaleofanimposition,butifyouhaveafriendwillingtoletyoudoit,doit.

Ifnot,pickthebestrestaurantintown.You,notyourassistant,shouldcallbeforehand,askforthehost/hostessandsayyou’refromoutoftown,you’reentertainingoneofyourtopcustomers,and“Youwon’tbesorrywhenIgetthere.”Describeyourselfandsayyouwouldliketobegreetedbyname.Tellhimorheryouwantatablethathasthreecharacteristics:notnearaswingingkitchendoor,notnearabusingstation,andnotinahigh-trafficentrancearea.Lethimorherknowyouwouldliketheirbestwaiter.Nomenu.Justarecitalofthechoicestthreeorfouritemsbeingservedthatday.Givethehost/hostessyourcreditcardnumber.Tellhimorhertoadd20percenttothebillforthewaiter,butnottopresentthebillatthetable.Giveyourofficephonenumberforverification,orifyouhaveto,stopbyinadvanceandsignthebill.

verification,orifyouhaveto,stopbyinadvanceandsignthebill.

Attheendofyourmeal,watchcarefullyforthestartledexpressiononyourcustomer’sfacewhenyouutterthemagicwords“Let’sgo”andleavehimwonderingwhenyousignedthecheck.

Bydoingalittleadvanceplanningyou’veachievedtwomajorobjectives:You’veavoidedanawkwardmomentforyourcustomerbynotsigningorpayingincash,andyou’vejustmadethebestrestaurantintownyourownprivateclub.

Lesson10

ShortNotesYieldLongResults

Doyoualwaysbuyacarfromthesamesalesperson?Yourshoes?Anytangibleitem?Ofcoursenot.

Anewcarcostsmorethan$30,000thesedays;it’samajorpurchasedecisionforanyone.Ibuyoneeverycoupleofyears,butIhaveneveronceheardfromanycarsalesperson—oranysalespersonofanysubstantialitem—onceI’dmadethepurchasefromhim.Nothank-younote.No“Wejustgotanewshipmentin.”Nonothing.

YetmanyofthesuccessfulpeopleIknowareconstantlysendingoutshortnotes.LouHoltz,theUniversityofSouthCarolinafootballcoach;PatFallon,thechairmanofoneofthenation’shottestadagencies;WheelockWhitney,whobuiltoneofthenation’smostsuccessfulbrokeragefirms.They’reallmastersoftheshortnote.“IwantyoutoknowhowmuchIenjoyedourmeeting/yourgift/yourhospitality/whatever”;“Congratulationsonyournewfinancing/house/plant/wife/kid’sperformanceattennis/whatever”;“Here’sanitemaboutenvelopes/golf/tennis/marketingseminars/whateverIthoughtyoumightbeinterestedin.”

They’rehand-written,hand-stamped,andmailedthesamedaytheitemappearsorisannouncedorwe’vehadameeting.Ittakesonlyamoment.It’sallamatterofpersonalrecognitionandcourtesy,asitistoremembernamesandtakeapersonalinterestinthepeoplewithwhomyouwork.It’samajorpartofthereasonwhyHoltz,Fallon,andWhitneyaresuccessful—andwhyI’venever

thereasonwhyHoltz,Fallon,andWhitneyaresuccessful—andwhyI’veneverboughtacarfromthesamepersontwice.

Keepthishabitinmindevenifyou’reonlyonthefirstorsecondstepoftheladder.AyoungwomanIknow,freshoutofBrownUniversityandhottobreakintoadvertising,hadaboutasmuchchanceconnectingwithajobonMadAveasayoungactresshasoflandingapartfourblockswestofMadisononBroadway.ShestruggledthroughtheusualmonthsofrejectionandalarmingdependenceonthemedicationsofDr.Scholl.Finally,aninterviewseemedtogowellonbothsidesofthedesk.Thathadhappenedbeforeandsheknewshewasalongwayfromhavingthejobsewnup.Shewentbacktoherapartment,composedandtypedacreativeletterofappreciation,andhand-delivereditthatsamedaytothemaybe-boss-to-be.Endofstory?Shegotthejob—againsttoughcompetition—andlaterlearneditwastheletterthatdidthetrick.

Lesson11

TheSecond-BestPlacetoLookforNewBusiness

Everybusinessbookwilltellyouaboutthe80/20rule:80percentofyourbusinesscomesfrom20percentofyourcustomers.

Everybusinessbookalsowilltellyoutoworkthatcustomerlistformorebusinessandmoreprospects.

It’sgoodadvice.

Butwhatabouttheflipsideofthatequation?If20percentofyourcustomersare80percentofyourbusiness,then,whenyou’rethecustomerandnotthesalesperson,you’realso80percentofthebusinessto20percentofyourownsuppliers.

Lookatyoursupplierlist.Shouldn’tthesepeople,whoaredependentuponyoufortheirlivelihoods,beamajorsourceofbothbusinessandprospects?

Mysuppliershavetogettheirenvelopesfromsomeone.Thatsomeoneisme.

Lesson12

WhatEverySalesperson—andNotEnoughEntrepreneurs—Know

Askaroomfulofentrepreneurswhatthesweetestsoundintheworldisandtheyleantowardthecrispcrinkleoffreshlymintedcurrencyorthedullthudofacompetitor’sbodyhittingthepavement.

Askanyoneinthesalesgameandthey’lltellyouthatit’sthesoundoftheirnameonsomeoneelse’slips.

Iknowtheheadmistressofaprivateschoolwhomakesitapracticetolearnthenamesofeachoftheoveronethousandkidsattendingherschool.Ifthey’renewandshehasn’tmetthem,shelearnstheirnamesbystudyingtheirpictures.Onthefirstdayofeachyear,whenthebusesarrivetodropoffthekidsatschool,shegreetseachonebynameastheygetoffthebus.Imaginehowreassuringitistoafrightenedfirst-grader,suddenlythrustintostrangesurroundings,toberecognizedimmediatelybyanadultwhoisinchargeofhisorherlife.Ortothechild’sanxiousparentswhohaveplunkeddown$13,000fortuition.WhentheyaskJuniorhowitwentthefirstday,theydiscoverthattheheadmistressoftheschoolhastakenapersonalinterestintheirchild.

Inthetwelveyearsthatheadmistresshasbeenattheschool,enrollmenthasmorethandoubled,theschoolhasmovedtoagrandnewfacilitythatisclearlythefinestinthearea,andtheendowmenthasbeenincreasedsixfold.Notalltheresultoflearningthosenames,ofcourse,butitcertainlydidn’thurttohaveaheadmistresswhounderstoodthatherperformanceasasalespersonwasas

headmistresswhounderstoodthatherperformanceasasalespersonwasasimportantasherroleasaneducator.

Lesson13

KeepYourEyeonYourTime,NotonYourWatch

Knowingwhattodoisn’tenoughifyouhaven’tdevelopedtheself-disciplinetodoit.Theheadmistresswholearnedtorecognizeheronethousandstudentshadnoextraordinarygiftsofmemory.ShelearneditthesamewayshelearnedLatinwhenshewasahighschoolfreshman.Shelockedherselfinherroomeveryeveningforaweekandspentthetimedrillingherselfwithhandmadeflashcards.Insteadof“Amo,amas,amat”ontheonesideand“Ilove,youlove,heloves”ontheother,therewereherstudents’picturesonthefrontandtheirnamesontheback.

Mostofusquitdoingthatsortofthinginninthgrade.Shedidn’t.

Itamazesmethatsomanysalespeopleareseizedbyinertiaandactasiftheycancontinuetoclingtotheirjobswithouthavingtoexertthemselves.

Ihaveknownsuccessfulsalespeoplewhowerealcoholics,gamblers,liars,thieves…butIhaveneverknownasuccessfulsalespersonwhosatonhisassallday.

WithalloftheAnonymousgroupswehavefordealingwithhumanimperfection,whyisitwehaven’torganizedtocombatthemostdangerous,expensive,andself-destructivehabitofall:wastingtime?Youcandoallthoseothernastythingsandstillmakeadecentliving.Butifyoublowoffyourninetofivesonuseless,time-consumingbehavior,youwillfail.

Asalespersonreallyhasnothingtosellbuthistime.Hisproductexistsindependentlyofanythingheaddstoit;hispersonalitywillwinhimorlosehimaccountsinitially,butifheisn’taroundtoprovideserviceandbeaccessibletohiscustomers,he’lllosethoseaccounts.

Themarkofagoodsalespersonisthathiscustomerdoesn’tregardhimasasalespersonatall,butatrustedandindispensableadviser,anauxiliaryemployeewho,fortunately,isonsomeoneelse’spayroll.

Ittakesenergyandself-disciplinetosell.Yourcustomerdoesn’tcareifyoumakethecall.You,thesalesperson,havetocare.Despiteallthepsychologicalgimmicksdesignedtomotivatesalespeopletomakecalls,likebullpens,salescontests,salesmeetings,andmotivationaltraining,salespeoplestillcontrivetofind1,001waystoavoidinvestingtheoneassettheyhavethatwillinvariablybringresults:theirtime.

Why?

IwishIknew.

ButIdoknowthatasalespersondoesn’thavetohavethecharismaticleadershipqualitiesofBankOne’sJamieDimonoreBay’sMegWhitmantobesuccessful.Justfollowonesimplerule:Setupaschedulewithafixednumberofcallstobemadeeveryworkingday,andcompletethatschedule.Ifyoumaketenstopsbutonlyoneeyeball-to-eyeballsalescall,you’vemadeonlyonecall.

Asasalesperson,keepingtrackofyourtimeisthemoralequivalentofadietercountingcalories,exceptyouaremonitoringyouroutput,notyourintake.

Itisanabsolutelyfail-safemethod—theonlyonethereis—toensuresuccess.Ifyougiveyourselfareasonableworkprogramandfollowit,you’llhitthetopofthecharts.It’smyexperiencethatsalespeoplewhodomonitorthemselvesthiswayactuallygivethemselvesatougherprogramtofollowthantheirsalesmanagersgivethem.That’sbecauseweknowourselveswellenoughtoknowthatourrealcapacityfarexceedstheaverageexpectationsothershaveforus.

Lesson14

IfYouDon’tHaveaDestination,You’llNeverGetThere

Settinggoalsissimplythelong-termversionofkeepingtrackofyourtime.Actually,athree-stepprocessisinvolved:

SettinggoalsDevelopingaplantoachievethosegoalsKeepingtrackofyourtimetomakesureyourplangetsexecuted

WhenIwasinJapanin1983,wehadaseriesofseminarsinwhichweheardspeechesfromtheleadersofJapan’slargestindustrialconcerns.WeheardfromthetopofficersofHonda,Sony,Mitsubishi,andtheheadofthebiggestenterpriseofall,theeighty-eight-year-oldpresidentofMatsushitaElectric.

Persuadingthemtospeaktouswasquiteacoup,becausetheJapanesesystemismuchmorerigidlystructuredthanours,andtheyregardappearingbeforethetroopsinthisfashionassomewhatbeneaththeirdignity.

AndifgivingspeecheswasregardedasacrudeOccidentalcustom,imaginehowtheyfeltaboutansweringquestions.

Butwhenoureighty-eight-year-oldheadlineraddressedus,hespokeeloquentlyandprofoundly.Thencamethequestions:

Question:“Mr.President,doesyourcompanyhavelong-rangegoals?”

Question:“Mr.President,doesyourcompanyhavelong-rangegoals?”

Answer:“Yes.”

Question:“Howlongareyourlong-rangegoals?”

Answer:“Twohundredfiftyyears.”

Question:“Whatdoyouneedtocarrythemout?”

Answer:“Patience.”

Soundslikeajoke.Butifit’ssofunny,howcomeeverytimewecompetewiththem,theyburyus?Everybodyandeverybusinessneedasetofbasicgoalsandbeliefs,butmostofusareseat-of-the-pants,one-day-at-a-timeoperators.Ourgoalsarefuzzyandourplansforachievingthemnonexistent.

Microsoftsaysitwilldeliveronitsmissionthroughembracingsevencorevalues:

BroadcustomerconnectionAglobal,inclusiveapproachExcellenceTrustworthycomputingGreatpeoplewithgreatvaluesInnovativeandresponsibleplatformleadershipEnablingpeopletodonewthings

Addtothatformulatwopowerfulpiecesofwisdomfromstandard-bearerBillGates:(1)“Yourmostunhappycustomersareyourgreatestsourceoflearning.”(2)“Thefirstruleofanytechnologyusedinabusinessisthatautomationappliedtoanefficientoperationwillmagnifytheefficiency.Thesecondisthatautomationappliedtoaninefficientoperationwillmagnifytheinefficiency.”

Nothingunrealisticthere.

Yourpersonalplansandgoalsdon’tevenhavetobethatcomplicated.

Howaboutagoallikeimprovingyoursalesrankingonequartile,oradding

Howaboutagoallikeimprovingyoursalesrankingonequartile,oraddingXmoreaccounts,Ymoreincome,Zmoretotalsales?Ifthatkindofbasicplanningandgoal-settinghashelpedmakeMicrosofttheMicrosoftofbusiness,shouldn’tyoubedoingit,too?

Oneofmygoodfriendsgavemeherdefinitionofagoal,andit’sthebestoneI’veeverheard.“Agoalisadreamwithadeadline.”Writeyoursdown—becausethat’stheonlywayyou’llgivethemthesubstancetheyneedtoforceyoutocarrythemout.

Lesson15

BelieveinYourself,EvenWhenNoOneElseDoes

Rememberthefour-minutemile?PeoplehadbeentryingtoachieveitsincethedaysoftheancientGreeks.Infact,folklorehasitthattheGreekshadlionschasetherunners,thinkingthatwouldmakethemrunfaster.Theyalsotriedtiger’smilk—notthestuffyougetdownatthehealth-foodstore,buttherealthing.Nothingworked.Sotheydecideditwasimpossible.Andforthousandsofyearseveryonebelievedit.Itwasphysiologicallyimpossibleforahumanbeingtorunamileinfourminutes.Ourbonestructurewasallwrong.Windresistancetoogreat.Inadequatelungpower.Therewereamillionreasons.

Thenoneman,onesinglehumanbeing,provedthatthedoctors,thetrainers,theathletes,andthemillionsandmillionsbeforehimwhotriedandfailed,wereallwrong.Andmiracleofmiracles,theyearafterRogerBannisterbrokethefour-minutemile,thirty-sevenotherrunnersbrokethefour-minutemile,andtheyearafterthatthreehundredrunnersbrokethefour-minutemile.

Afewyearsago,inNewYork,IstoodatthefinishlineoftheFifthAvenueMileandwatchedthirteenoutofthirteenrunnersbreakthefour-minutemileinasinglerace.Inotherwords,therunnerwhofinisheddeadlastwouldhavebeenregardedashavingaccomplishedtheimpossibleafewdecadesago.

Whathappened?Therewerenogreatbreakthroughsintraining.Humanbonestructuredidn’tsuddenlyimprove.Buthumanattitudesdid.

Thinkaboutthestonecutter:Hehammersathisrockahundredtimeswithoutdentingit.Onthehundred-and-firstblow,therockwillsplitintwo.Youknowitisnotthatblowthatdiditbutallthathadgonebefore.Youcanaccomplishyourgoals…ifyousetthem.Whosaysyou’renottougher,smarter,better,harder-working,moreablethanyourcompetition?Itdoesn’tmatteriftheysayyoucan’tdoit.Whatmatters,theonlythingthatmatters,isifyousayit.UntilBannistercamealong,weallbelievedintheexperts.Bannisterbelievedinhimself…andchangedtheworld.Ifyoubelieveinyourself,well,then,there’snothingyoucan’taccomplish.Sodon’tquit.Don’teverquit.

Lesson16

SeekRoleModels

Well,thetruthis,we’renotallBannisters…andwedon’thavetobefirsttosucceed.Asonefamouspoliticalfiguresaid,“It’sthepioneerswhogetallthearrows.”

Intherestaurantbusiness,youneverwanttobethefirstoperatorinalocation.Usuallytheplacehastopassthroughthreeorfoursetsofhandsbeforethere’safitbetweentherestaurant,thelocation,andthemarketthat’sbeingserved.

ThetrickistobenefitfromtheBannisterswithouthavingtotakethearrows.Thepeoplewhoranthefour-minutemileafterBannisterhaddoneitsucceededinlargepartbecausetheyhadBannisterasarolemodeltoproveitcouldbedone.

WhenBannisteraccomplishedit,theotherswereabletopsychthemselvesupanddothesamething.Who(orwhat)ispsychingyouup?Ifyouthinkaboutwhyyouarethewayyouare,chancesareithasalottodowithtryingtobelikesomeoneyouadmired.Youobservedandyoucopiedthatperson’smannerisms.Sometimes,towinhisorherapproval,youpatternedyourwholelifestyleafterthatperson.Andyoudidn’tbecomepermanentlycynicaljustbecauseyoudiscoveredatagefourteenthatMomandDadweren’tperfectandthatSimonandGarfunkelwereright:JoeDiMaggiohasgoneandheain’tevercomingback.(Incaseyoudon’trememberwhoSimonandGarfunkelwere,don’tworry.

Oneday,theywon’tbecomingbackeither.)

Youneverstopneedingrolemodels.TheBannistersandthesuperstarsineveryotherfieldkeeprightonholdingrolemodelsinfrontoftheireyeslongafterthey’vebecomerolemodelsthemselves.Theystudythem,copythem,competewiththem,andeventrytosurpassthem.Itdoesn’tendwithchildhood.They’reconstantlygoadingthemselvestomeetnewchallenges.Theytopoldrolemodels,thentheyfindnewones.Theytopthemselves,andtheysetnewgoals.Whatbetterwaytomeasureyourself,tofeelgoodaboutyourself,andtoachievethantryingtobelikepeoplewhomyouadmire?Lookatyourselfinthemirror.Ifyoulikewhatyousee,don’tforgetthatyouwanttofeelthesamewaytomorrowmorningandthemorningafter.

Lesson17

Fantasize

Whenyou’velivedinacitylikeNewYork,youtakeyourmajor-leaguestatusforgranted.Butwhenit’stheMinneappleandnottheBigApple,beinginthemajorstakesoncosmicsignificance.Losethoseteamsandyou’velostyourcivicidentity.Twenty-fiveyearsago,beforetheCalvinCrisisIdescribedearlier,MinneapolisandSt.Paulhadtheirfirstscareaboutlosingtheirmajor-leaguesportsfranchises,theMinnesotaTwinsandtheMinnesotaVikings.

Theproblemwasourstadium;itwasthestandardoutdoorvarietyandforourareahopelesslyoutdated.Upgradingthestadiumwasn’ttheanswer.WithMinnesota’slongwinters,anyoutdoorfacility,nomatterhowmodern,isvirtuallyunusableduringthelasthalfofthefootballseasonandthefirstfewweeksofbaseball.

Ifweweregoingtokeeptheteams,weweretold,weneededanewstadium.

I’dbeenasportsnutallmylife.Ididn’twanttogobacktosittingonawoodenbenchrootingforaParkBoardsoftballteam.Ididn’thavetheresourcestoindulgeintheultimatefantasyofbuyingateam.

SoIwenttoworktotrytosaveourteamsbybecomingactiveinthecivicprogramtobuildanew$75millionstadium,andultimatelyIbecamechairmanofthestadiumtaskforce.WhenIstarted,Ithoughtitwouldtakeoneyear.Ittookseven.Sevenhard,uncertain,frustratingyears.Yearswhenmostofthetimenothingseemedtogoright.FromthetimeIgotstarteduntiltheHubertH.

timenothingseemedtogoright.FromthetimeIgotstarteduntiltheHubertH.HumphreyMetrodomewasbuilt,Ihadafantasy.Iwouldbetheonetothrowoutthefirstball.Notthemayor,notthegovernor,notJoeDiMaggio,butme.Isawitinmymind’seyeathousandtimes.And,ofcourse,Ifinallydidit.

That’swhatIdidwhenIwasthirteenanddreamedofowningafactory.That’swhatIdidwhenIownedthefactoryanddreamedofsellingthelargestandmostprestigiousaccountintownandfinallyachievedit.Infact,forfiveyears,duringtheerawhenmenactuallyworehats,Ihadthewords“GeneralMills”pastedinsidethecrownofmyhatsoIsawiteverytimeIputmyhaton.AnabsolutelyunavoidablewaytoremindmyselfofwhatIhadtodo.

Icametorealizethatfantasizing,projectingyourselfintosuccessfulsituations,isoneofthemostpowerfulmeansthereistoachievepersonalgoals.

It’swhatanathletedoeswhenhecomesontothefieldtokickafieldgoalwiththreesecondsontheclock,sixtythousandpeopleinthestands,thirtymillionwatchingonTV,andthegameinthebalance.

Asthekickerbeginshismove,heautomaticallymakesthehundredtinyadjustmentsnecessarytoachievethementalpicturehehasformedinhismindsomanytimes…sincehewasakid…thepictureofhimselfkickingthewinningfieldgoal.Greatathletesseemtohavesomethingincommon:theabilitytoproject.Eveninthemiddleoftheaction,theyseethingshappenasplitsecondbeforetheyhappen.

Humansurvivalitselfveryoftendependsonakindoffuturevision,seeingoneselfinspecificsituationsasahealthy,thriving,creativeperson.

Therewasastudydoneofconcentrationcampsurvivors.Whatwerethecommoncharacteristicsofthosewhodidnotsuccumbtodiseaseandstarvationinthecamps?ImetamannamedVictorFranklwhowasalivinganswertothat.HewasasuccessfulViennesepsychiatristbeforetheNazisthrewhimintosuchacamp.“Thereisonlyonereason,”hesaidinaspeech,“whyIamheretoday.Whatkeptmealivewasyou.Othersgaveuphope.Idreamed.IdreamedthatsomedayIwouldbehere,tellingyouhowI,VictorFrankl,hadsurvivedtheNaziconcentrationcamps.I’veneverbeenherebefore,I’veneverseenanyofyoubefore,I’venevergiventhisspeechbefore.Butinmydreams,inmydreams,Ihavestoodbeforeyouandsaidthesewordsathousandtimes.”

Dreamon.

Dreamon.

Lesson18

TheEasiest,LeastExpensive,andMostNeglectedFormofAdvertising

Didyouevernoticehowmanypeoplehappentoworkinofficebuildingsmorethanonestoryinheight?

Andhowmanyofthesesamepeoplehappentolookoutthewindowfromtimetotime?

Paintyourcompanynameand/orlogoonthetopofyourtrucks.Itcostspracticallynothing.AdvertisersspendsumsthatwoulddazzleevenaTVevangelisttocaptureasliverofamajorurbanmarket.Inaworldwhereadvertisersspendafortunejusttobeonthebackofticketenvelopes,thepainlessgimmickofpaintingthetopofyourtrucksisignored.We’vebeendoingitforfortyyears,andwe’reknownlocallyas,youguessedit,“thecompanythatpaintsitsnameonthetopofitstrucks.”WhatI’veneverbeenabletofigureoutiswhyeveryoneelsedoesn’tdoit.

Paintyourwagon.

Lesson19

ShowMeaGuyWhoThinksHe’saSelf-MadeManandI’llShowYoutheEasiestSellintheWorld

Allyouhavetodoismakehimthinkit’shisidea.

CHAPTERTHREE

HarveyMackay’sShortCourseonNegotiation

Lesson20

SmileandSayNoUntilYourTongueBleeds

No.No.No.No.No.No.No.No.No.No.No.No.No.No.No.No.No.No.No.No.No.No.No.No.No.No.No.No.No.No.No.No.No.No.No.No.No.No.No.No.No.No.No.No.No.No.No.No.No.No.No.No.No.No…

Maybetomorrow.You’llbeamazedhowthetermsofyourdealswillimprovewhenyoulearntosayNO.TherewereonehundredbankfailuresintheUnitedStatesin1986.HowmanydoyouthinkwerecausedbecausethebankersaidNOtotoomanyterrificloans?

Asabuyer,youhavetobeawarethatthesellerisconstantlymeasuringyou,andmovinginforthekill.Timeisalmostalwaystheseller’senemy,notyours.Thelongeryoutake,thelongeryouhavetheuseofyourownmoneyandcontroloverthetermsofanydeal,andthemorelikelythosetermsaretoimprove.That’swhysellersalwayscouchtheirdealsintermsofbuynow.Ifyoudon’t,they’regoingtohavetogiveyouabetterdeal.Andwhatsellerwantstodothat?

Whiletheselleristryingtosetyouupwiththe“Whoismycustomerandwhatdoeshereallywant”bit,youshouldbeawareofitandtakeappropriatecountermeasures.

Yearsago,longbeforethedaysofprofessionalagents,IactedasanunpaidagentforagreatBigTenfootballplayer—let’scallhimI.C.Anderson,or“Iceman,”or“IntensiveCare.”Theyallprettymuchdescribehisspecialty:providingorthopedicsurgeonswithanoutstandingassortmentofprofessional

providingorthopedicsurgeonswithanoutstandingassortmentofprofessionalchallenges.HehadbeendraftedinthefirstroundbyboththeTorontoArgonautsoftheCanadianFootballLeagueandtheBaltimoreColtsoftheNFL.(TheColtsfranchise,ofcourse,movedtoIndianapolisinthemid-1980s.)I.C.wasoneofninechildren,apoorblackkidwhohadrarelyseenanickelinhislife.ObviouslyIwantedtostrikethebestdealIcouldforhimandtriedtogetabiddingwargoingbetweenthetworivalowners,JohnBassettofTorontoandCarrollRosenbloom,thenofBaltimore.BassetthadmadehisfortuneasownerofaTorontonewspaper.Rosenbloommadehispileintheragbusinessandsports.Theyweresimilarinsixways.Theywerebothrich,competitive,andhard-nosed.Extremelyrich,extremelycompetitive,andextremelyhard-nosed.Iwaswayoutofmyleague.

IletRosenbloomknowwewerefirstgoingtoToronto.WemetwithBassett,andhemadeI.C.averyattractiveoffer.Atthatpoint,everyinstinct,everycellinmybodytoldmetogetoutofBassett’sofficeandontoBaltimore.“Thankyou,Mr.Bassett.We’llcertainlyconsideryourgenerousoffer,andwe’llletyouknow,”Isaid.

Bassettgavemeateeny-weenysmile.“Justoneotherthing,”saidBassett.“Myproposalisgoodonlyforaslongasyouareinthisroom.Theinstantyouleave,I’mcallingMr.RosenbloominBaltimoreandtellinghimthatIhavenofurtherinterestinyourman’sservices.”

Afterstandingtherewithmypantsdownaroundmyanklesforthenextminuteortwo,Iaskedhimifitwouldbeallright“ifIcouldconferwithmyclientinthenextroom.”Permissiongranted.

“I.C.,”Isaid,takinghimtothewindowandwhisperingtocrossupthemikesIwassurewerehiddeninthetableinthemiddleoftheroom,“we’vegottobuysometimeandgettoBaltimoreimmediately.Pretendyou’rehavingamentalbreakdownandcan’tdealwiththepressure.OrmaybeI’lltellhimIhavetogetbacktoMinneapolisforlabornegotiations.”

I.C.lookedatmeasifIweretheonehavingthementalbreakdown.Allthatmoney,andhereIwasplayinggameswithhisfuture.AnAll-Americanhewas;LaurenceOlivierhewasn’t.Wedecidedtogowiththelabornegotiationsbit.

“Mr.Bassett,IreallydohavetogetbacktoMinneapolistonightforlabornegotiations.Ihavealotonmymind.I’llletyouknowtomorrow.”

Bassettreachedforthephone.WashecallingRosenbloom?No,hisownsecretary.“AreanyofourthreeLearjetsaround?IwantonetotakeMr.MackayandI.C.backtoMinneapolis.”ThreeLearjets.I.C.pantingovermyshoulder.Mypantsweredownaroundmyanklesagain.Ihadbeencaughtinabold-facedlie.Thereseemedtobeonlyonethinglefttodo.

“Mr.Bassett,I’mgoingtosaveyouthetroubleofmakingthatphonecalltoBaltimore.We’returningdownyouroffer,”Isaid.

I.C.thoughtIwascrazy,ofcourse,andIeventhoughtIwascrazy.Butitworked.WewenttoBaltimorethenextdayandsignedwithCarrollRosenbloomforabetterdealthantheoneBassetthadoffered.I.C.playedtenyearsforBaltimoreandstartedintwoSuperBowls,andwhenCarrollRosenbloomtradedhisBaltimorefranchisefortheLosAngelesRams,hetookonlyoneplayerwithhimouttoCalifornia:I.C.Anderson.

Ihadlearnedthetwomostimportantlessonsanynegotiatorcanlearn.First,bepreparedtosayNO.NooneeverwentbrokebecausehesaidNOtoooften.Second,themostpowerfultoolinanynegotiationisinformation.Bassett’sscenariowasdesignedtogetAndersontosignbeforeheleftthatroomforonlyonereason:HehadahellofalotbetterideaofwhatRosenbloomwaswillingtoofferthanIhad.Iwaslucky.Myinstinctstoldmetogetoutoftherewithoutsigning.Itworkedthattime,butinthelongrun,instinctsarenomatchforinformation.

Lesson21

SendintheClones

Sayyouwanttobuyahouse,orabusiness…abig-ticket,one-of-a-kinditem.

Nothing’stougherthanfindingoutwhattheseller’srealpriceis,andthatmattersalotwhentheaveragehomepricetodayis$244,000andtheaverageManhattanapartmentnowcostsoveramillion.

There’saway.

Youcloneyourself.Youhireasubstitute,aringer.

There’samanwhoactuallymakesalivingdoingthisinL.A.,andthereprobablyaremanymoreacrossthecountry.Ifyoucan’tfindone,createone.Alawyeroranaccountantwilldonicely.

Let’ssaywe’retalkingaboutahouse.Theringermeetsthesellerandaskstheprice.Thesellersays$489,000.Thebuyerreachesintohispocket,pullsouthischeckbook,andbeginstowriteoutacheck,alow-ballcheck.

“I’mpreparedtowriteyouacheckrightnowfor$375,000.”

Atthispointwebegintogetthetrueprice.Thesellerreactseitherbygettingoffendedandrefusingtodeal,orbytryingtokeepthedealalive.Sincepeoplesellingtheirownhomessometimesthinkthey’repartingwiththecrownjewels,ifyourcloneaccomplishesnothingelse,he’ssparedyoufrombeingblownout

ifyourcloneaccomplishesnothingelse,he’ssparedyoufrombeingblownoutofthewaterbeforeyouevengetatoewet.

Ifthesellerisirateandwon’tdeal,weknowthathispriceis,forthetimebeing,$489,000.

Butseventimesoutoften,yourseller,probablyseeingareallivebuyerinfrontofhimforthefirsttimeinages,beginstotakehimveryseriouslyandstartstonegotiate.Hemaycounteronthespot.Let’ssay,$440,000.Inwhichcase,younowhaveamuchbetterideaofwhathe’sreallywillingtotake.Orhemaystall.Regardless,ifthere’sanyglimmerofhesitation,younowknowmoreabouthispricethanheknowsaboutyours…beforehe’severmetyou.Youmayhavebeguntotapintothemotherlodeofallnegotiatingtools:information.

Thenextstepistowaitaweek,thensendinanotherringer,withaslightlydifferentline.Hemayofferahigherpriceandbeimpossibleonterms,orhemayeventryaslightlylowerprice.I’llpaymuchmoreifyou’llletmenametheterms.

He’llpickupmoreinformation.Andhe’llhelpdrillalowerpriceintotheseller’sskullasthelevelatwhichbuyersarewillingtodeal.

Ifyoustillwanttostepin,younotonlyhaveagoodideawhattherealpriceis,younotonlyhaveconditionedthesellertoexpectalower-than-advertisedprice,youhavealsoarrivedatthishappystateofaffairswithoutyourselfhavingantagonizedthesellerwithalow-balloffer.

ItsureworkedformewhenIwastryingtobuyoutmybiggestcompetitor.BythetimeIcameintothepicture,Inotonlyhadanexcellentideaoftheoriginalprice,butalsoalltheirfigures,accounts,records,theworks.Itdoesn’talwayswork,ofcourse,butifitworksonceinalifetime,that’senough.

That’showIfoundoutthat35percentoftheirbusinesscamefromonecustomer.SomethingI’dalwayssuspected—butnottothetuneof35percent—somethingitwouldhavetakenayearforme,theirmosthatedcompetitor,topryoutofthemifI’dstartedtodealdirectlywiththemattheoutset.

Lesson22

ThereIsNoSuchThingasaSold-OutHouse

Everybodygoesonlinetonegotiatehotelpricestoday.Foreverydayneeds,nothingworksbetter.AndthePCandnotebookhavevirtuallyputthetravelagentoutofbusiness.

Whatworkseverydaydoesn’tworkonthosespecialdayswhenpeoplewanttheverybestroomsintheswankiestofplaceslikeAcapulcoorSt.Martin’saweekbeforeChristmas.Infact,it’sfarhardertodotodaybecausetherearen’tmanytravelagentsstillaroundwhomyoucanleanonforafavor.I’veneverbeenshutout,butyouhavetoknowhowthegamehaschanged.First,youhavetocallMexicoortheCaribbean.(Note:Well,youhavetocallthepropertyitself,notan800numberthatmayhookyouupwithaclerkatacallcenterinBombayorDublin.)Askforthereservationsclerkorhotelmanagerinthehotelwhohandlesreservations.Gethisorhername.Thenyousay,“Look,youhavefivehundredroomsandfivehundredreservations.Iknow,andyouknow,somebodyoutofthosefivehundredpeopleisn’tgoingtoshowup.Somebodywillgetsick.Somebodywon’tbeabletointerruptabigbusinessdeal.Whatever.Withfivehundredpeopleithastohappen.Wejustdon’tknowwhoit’sgoingtohappentobe.SoallI’maskingisnotthatyougivemeareservationbutthatyouputmynameonthetopofthewaitinglist,andbecauseI’msosurethatthere’sgoingtobeanopening,I’msendingthemoney,inadvance,andyoucanbesurethatwhenyoucallmecollectandtellmethere’sanopening,andIcomedownthere,I’llrememberyouexactlyonehundredways.”Thengiveyournameandnumber,hangupthephone,andwirethereservationmoney.Theyalwayscall

Lesson23

UnderstandingYourBanker

Visitingthebankeralwaysmakesthelistoflife’ssweaty-palmedexperiences.Strippingdowntohaveyourfinancialsexaminedissubmittingtoanemotionalproctoscopythatnoamountof“friendlybanker”advertisingisevergoingtochange.There’sareasonthesemeetingstakeplaceonthebanker’sturf,inbuildingsdesignedasTemplesofCommerce.Lestweforget,moneyisasubjecttobetakenveryseriously.

Butbankersarepeoplewithaproducttosell.Money.Itisawastingasset.WhenitsitsinT-bills,whichiswhereitiswhenitisn’tbeinglentout,itearns1.6percent.Whenit’sinvestedinyourmortgageoryourcar,it’searningatleasttwicethatmuch.Evenwithadefaultrateof2.5percent—whattheveryworstbanksexperience—theystillearnahellofalotmorewhenit’sloanedoutthanwhenitisn’t.Here’showawealthyGermanindustrialistnegotiatedwithhisbanker.

HerrSchwan,wewillcallhim,waswellintohisseventiesbutstillactiveinbusiness.Helearnedthathisson,whofanciedhimselfareal-estatedeveloper,hadgotteninwelloverhisheadonanapartmentproject.TheseniorSchwanhadnodesiretoputinhisownmoney.Hedecidedtoborrowit.Sohehadhisbookkeeper,theformidableFrauHoffman,makeanappointmentforthemwithabanker,HerrWittman.SchwanandHoffmanarrivedatthebanker’sdeskatthehourHerrSchwanselected:four-thirtyonFridayafternoon.Schwanhaddonehishomeworkhere,too.Heselectedtherightbank,therighttime,andtherightbanker.HeknewWittmanhadtwopassions:tennisandopera.

banker.HeknewWittmanhadtwopassions:tennisandopera.

Asthemeetingstartedwiththecustomarysmalltalk,Schwan,whohadneverbeenparticularlytalkativebefore,begantoholdforth.First:tennis—hecompetedatWimbledononce,1931,firstround.Thelong-forgottenmatchwasreprised.Next,opera.HighlightsoffourdecadesofWagnerfestivalsatBayreuthwererecalled.Theclockstruckthehour.Timeforgoodbankemployeestocleartheirdesksandgohome.HerrWittman,acompulsiveclean-desktype,nervouslyfingeredthe“Schwan”fileonhisdesk.HehadexpectedtoreachanagreementwithSchwanthatafternoon—andbeabletoreportittohissuperiorsattheirregularweeklymeetingonMondaymorning.HerrSchwandronedon.

Atfive-ten,HerrSchwanrosefromhischair,lookedathiswatch,andsaidhowmuchheenjoyedhischat,buthewasexpectedelsewhere.Wittmanhelpedhimstruggleintohiscoat,butitwasnotuntilSchwanandHoffmanturnedtheirbacksandheadedfortheelevatorthatthefirstwordofthepurposeofthemeetingwasmentioned—bythebanker.

“Youdidwanttodiscusssomethingaboutamortgage,HerrSchwan?”saysWittman.

“Mortgage?Youwantedmetoseehimaboutamortgage,FrauHoffman?”saidSchwan.Thiswholebusinesswas,ofcourse,FrauHoffman’sidea.

Schwanneverrequestedaloan.Wittmanbroughtupthesubject;itwaslefttoWittmantomaketheoffer.Hedid,whiletheywerestillontheirfeet,standingbytheelevatordoors.

Theinterestratechargedwas6.18percent.Thebankshouldhavegottenatleast7.Andthetermswerefantastic!

“Irememberthedealperfectly,”saidhisotherson,whodidnotgethimselfinvolvedinshakyreal-estatedeals.“Because,ofcourse,myfather,despitegivingabravuraperformanceasanabsentmindedoldman,faultlesslyreiteratedeverydetail.”

Absentminded,indeed!

Don’tforget,despiteallthepsychologicalbarrierstheythrowatyou,thatthebankeristheseller;youarethebuyer.Theydon’tmakehousecalls,butthat

doesn’tmeanyourjobistopersuadethemtodobusinesswithyou.Theirjobistopersuadeyou.Makethemdoit.You’llgetabetterdeal.

Lesson24

TheSingleMostPowerfulToolforWinningaNegotiationIstheAbilitytoWalkAwayfromtheTableWithoutaDeal

HerrSchwandemonstratedthatwalkingawayfromthetableisnotjustforwhenyoudon’twanttodeal.Sometimesit’stheonlywayyoucanmakethedealyouwant.

Ifyouhavetohaveadeal,thenalltheothersideneedstodotowinthenegotiationistooutwaityou.

Takeinternationalrelations.Itusedtobeassumedthatbeingbamboozledintreatynegotiationswaspartofthepriceofafreesociety.Thereasonthedemocracieshavebeensuchfailuresininternationalnegotiationswithtyranniesisthattheattitudesofthegeneralpublicarepartofthebaggageourrepresentativesbringtothebargainingtable—andthegeneralpublichasanexpectationthat“success”inbargainingismeasuredbytheactofreachinganagreement,nevermindwhattheagreementis.

Asaresult,onceourforeign-policymakersaremaneuveredintogoingintonegotiations,it’salmostinevitablethatwelose,becausetheothersideknowsthattheyhaveonlytorefusetomakeadeal—unlessit’sonetheyregardasfavorabletothem—andthepublicperceptionwillbethatournegotiatorswillhavelostakeyopportunity.

VyacheslavMolotov,thelongtimeforeignministeroftheSovietUnion,wassoadeptatthisoutwaitingtechniquethathisnicknamewas“Ironpants.”

soadeptatthisoutwaitingtechniquethathisnicknamewas“Ironpants.”

Well,thingshavechanged.Foronething,strikesarenolongerautomaticallysettledontheunions’terms.Thoughtheair-trafficcontrollers’strikeprovedthatin1981,ittooktheHormelmeatpackers’strikein1986andtwostrikesbytheUAWagainstCaterpillarinthe1990stoconvincesomeoftheslowlearners.

Andinforeignpolicy,wenolongermakeconcessionsondemand.Infact,we’vebeenknowntogetupandwalkawaywhenthedealisn’ttoourliking.

Don’tletthemessagebelostonyou:Whetherit’salabornegotiation,anacquisition,orareal-estatedeal,don’tdeceiveyourselfintobelievingthatjustbecauseit’snegotiableithastobenegotiated.

Ihadoccasiontotakemyownadvicerecently.Fivepartnershadformedareal-estatedealtodevelopamajorhotelpropertyinChicago.Twodaysbeforeallthefinancialcommitmentsweretobesignedandthebankwastoissuetheirletterofcredit,oneofthepartners,anarchitect,droppedoutinadisputeoverthedollarvaluethey’dbecreditedwithfortheirprofessionalwork.That’swhentheycontactedme.Iwasofferedveryattractivetermsandgiventwenty-fourhourstomakeupmymind.Whenthetimewasup,Isaid,“Thankyouverymuch.It’saveryattractivedeal.ButIstillhaven’tdecidedthatIwanttotakeit.”AndIleftthetable.Thenextday—aftertheironcladtwenty-four-hourdeadlinehadexpired—thephonerangandthetermsgotevenmoreattractive,includingaguaranteebyafinancialangelwithForbes400networththateliminatedanydownsiderisk.

Dealsseldomgetworsewhenyouwalkawayfromthetable.

Bepreparedtowalkawayfromthetable…andmeanit.You’llbeabletogobacktothetableandgetevenbetterterms.

Lesson25

“CallingMr.Otis”

Yousayyou’llnotlikelybecalledontonegotiateatreatytorestrictWeaponsofMassDestruction,orhandlethecompany’sreal-estateorlaborcontracts?Nomatter.You’restillgoingtofindyourselfinthemidstofanegotiationwhereyourabilitytogetupandwalkawayisthekeytowinning.

There’sanancientscaminthecarbusinessknownas“CallingMr.Otis.”Theprospectcomesinandtohisgreatsurpriseisgivenafabulousofferforhisoldbeatertrade-inandanevenbetterdealonhisnewcarpurchase.Heshopsaround,findsthedealisunbeatable,andcomesbacktothedealerwiththeterrificproposition.

Thesalespersonwritesupthedeal.Hehastheprospectinitialit.Thenheaskstheprospectcasuallywhattheotherdealersofferedhim.Atthispoint,theprospect,flushedwithvictory,tossesawaythemostvaluableassethehasinthenegotiation:information—towit,theotherdealers’prices.

“Justonelaststep,”saysthesalesperson.“Thesalesmanagerhastookaythedeal.I’llcallhimrightnow.”Thesalespersonpunchestheintercomdeviceonhisphoneandsays,“CallingMr.Otis…callingMr.Otis.”Ofcourse,thereisnoMr.Otis.There’sasalesmanager,allright,buthisnameisreallySmithorJonesorwhatever.

Otisisthenameofthecompanythatmakeselevators—andthiselevatorisgoingup.Thesalesmanagershowsup.Hepullsthesalespersonoutoftheroom

goingup.Thesalesmanagershowsup.Hepullsthesalespersonoutoftheroomtolettheprospectstewforawhile,thesalespersoncomesback,saysOtiswon’tgoforthedeal,andthenproceedstoretradeituptoexactlythesameleveltheotherdealershadofferedtheprospect.Why,youmightask,doesn’ttheprospectsimplywalkatthispoint?

Becausehehastoomuchinvestedemotionallyincuttingthedealrightthere;he’salreadypickedouthisnewcar.It’sbluewithredupholsteryandit’ssittingrightthereontheshowroomfloor,waitingforhimtodriveitoff.Whilehe’sintheclosingroomwiththesalesperson,hiswifeissittingbehindthewheelandhiskidsarejumpingupanddownontheseats.He’stoldeverybodyatworkwhatashrewdnegotiatorheis.

Ifhedoesn’tsignhisname,hehastopickupandstartalloveragain…thekidswillstartcrying…again;andthey’llsnickerathimdownatwork…again.

Sowhat’s$1,740.50moreona$30,000purchase?Justafewmoremonthlypayments.ThisisAmerica,pal;thanksalot,haveaniceday,andhere’syourpaymentbook.Hesignsbecausehecan’twalkawayfromthattablewithoutadeal.Butyoucan.Andwhenyoudo,you’llendupbuyingyourcarsforlessmoneythanyouwouldifyoufellforthisclassicscam.

Lesson26

TheMostImportantTerminAnyContractIsn’tintheContract

It’sdealingwithpeoplewhoarehonest.

Thesecondmostimportanttermisincludingtherighttoinspectalltheirbooksandrecords,includingtaxrecords,correspondence,etc.,pertainingtotheagreement.Oncethatclauseisinthere,peoplewithatendencytogetcuteusuallydon’t.

Lesson27

AgreementsPreventDisagreements

Everynowandthenyou’llfindyourselfdealingwithoneofthosecountrycousintypeswhosayshedoesn’twantacontractand“yourwordisgoodenough.”Maybeyoursis,buthisusuallyisn’t.

OneofthosearrangementstaughtmealessonI’llneverforget.IhadahandshakedealwithamanIhired.Heagreedthathewouldnotseekotheremploymentfortwoyears.Afterayear,abetteroffercamealong,andhewasgone.Hesaidthatherememberedthatwehadagreedononlyoneyear.HowcouldIprovehewaswrong?Icouldn’t.NowwhatIdowhenImakeadealwithoneofthesecountrycousinsissendaletterthatsamedayinwhichI:

1. thankhimprofuselyforhiscourtesyand2. setoutthetermsofthedeal:“AsIunderstandouragreement,I

haveagreedto…”

Idon’tusuallyaskforanyacknowledgment(thoughyoucouldjusttobeonthesafeside—tomakesuretheletterarrived).It’sjustanice,friendlylittleletter—andausefulrecordifthereshouldbeanymisunderstandingslater.

Lesson28

TheLongerTheyKeepYouWaiting,theMoreTheyWanttoDeal

Thisisn’tmine;IreaditinanarticleinTheNewYorkTimessomeyearsago.Thefellowwhosaidthisknowswhathe’stalkingabout.He’sLeslieH.Wexner,chairmanofLimitedBrands,whichincludesthirty-eighthundredretailstoresandsixretailbrands—amongthemVictoria’sSecret.HeillustratesthepointwithastoryaboutMeshulamRiklis,whomadeitbigputtingtogetherRapidAmericanCorporation.TheyhadscheduledamajornegotiatingsessioninWexner’soffice.Wexneristhebuyer;Riklisistheseller.Riklisshowsuptwohourslatewithhisthenwife,PiaZadora,intowandexplainsthathewasdelayedbecauseshewantedtogoantiqueshopping.Anyonewhogoestothatmuchtroubletotrytoshowyouhowmuchhedoesn’tcareifhesellssomethingcaresahellofalotmorethanhe’swillingtoadmit.Theharderhetriestoconcealhiseagernesstounload,thebiggertherughehastoputitunder.Wexnergotabetterdealthanhehadhopedfor.

Ihadasimilarexperience.AsheadofatradedelegationtoChina,Iwasresponsibleforseeingtoitthatsomeveryelaborateformalbrochureswe’dpreparedweredistributedtoourChinesecounterparts.Thebrochureswerebeautifullyboundinbluevellumandcontaineddetaileddescriptionsofthemembersofourdelegation,ourbackgrounds,andourcapabilities.Iwasproudofthem,knewtheycontainedinformationthatwouldbeusefultotheChinese,andwantedtopassthemout,butourhostssaid,“Don’tworry.We’llpassthemoutattherighttime.”TherighttimenevercameastheChinesemadeagreat

outattherighttime.”TherighttimenevercameastheChinesemadeagreatshowofnotbeingterriblyinterested.Ijustcouldn’tunderstandwhytheydidn’tevencaretoglanceatourknockoutbrochures.SoI“accidentally”leftthembehindafterourdiscussionsoneday.WhenIcamebackfiveminuteslatertoretrievethem,theywereporingthroughthem—withmuchcluckingandgesturingandwithgreatsmilesontheirfaceswhenIcaughtthematit.

TheSovietsweremastersofusingtimingtoweardownandthrowoffanadversaryacrossthenegotiationtable.InastudyfortheRandCorporation,ThaneGustafsonwroteaboutEast-Westbargainingthatultimatelysetthestageforthegaspipelinedeal:

“AWestEuropeangasexecutiverecallsthatin1974,‘onthelastnightofafruitlessandfrustratingtriptoMoscow,wewerediningglumlyattheArbatRestaurant.Suddenly,ateleveno’clock,Osipov[theSovietnegotiator]sweptin,commandeeredaprivatediningroom,andrightthere,throughthesmallhoursofthemorning,wehammeredoutthecontract.’”

Bewarethelatedealer.Unlessyouareonyourguard,youmayreadhisintentionstotallywrongandendupgivingupabargainingadvantage.Feigningindifferenceorcasuallydisregardingtimetablesisoftenjustashrewdnegotiator’swaytomakeyoubelievehedoesn’tcare.

Lesson29

HeWhoBurnsHisBridgesBetterBeaDamnGoodSwimmer

Real-estateoperatorsarelegendaryforslow-paypractices,butIknowonewhohangsthemallouttodry.Thisgentleman—we’llcallhim“Bob”—wasthesonofamilkman.Hemadeafortuneinthetruckingbusinessandwoundupowningmajor-leaguesportsfranchisesonbothcoasts.Togiveyouanideaofhownimblehewas,afterheboughthisfirstsportsfranchiseintheMidwest,healsobought—quietlyandcheaply—anobscureFMradiostationontheWestCoast.Inabigsurprisemove,hethenshiftedthefranchisetotheCoastandscheduledthegamebroadcastsexclusivelyonhisnewstation.Movingnotonlyrevivedthefailingfranchise,italsomultipliedthevalueofthestation.Onemove.Twoprofits.

Bobalsoownedachainofhotels.Alarge,sophisticatedNewYorkinsurancecompanyheldthemortgageonhisflagshiphotel.OneFriday,theinsurancecompanyinquestion,exasperatedoveryearsofdelayedpaymentsornopayments,senttheirmantoseeBob.TheintrepidrepmarchedintoBob’soffice,threwdownasheafoflegalpapers,andannouncedthatasofMonday,theinsurancecompanywouldtakeoverandoperatethehotel.

“That’sfine,”saidBob,“butwherewillyouparktheguests’cars?”

“Why,intheparkinglotbehindthehotel,”saidtheinsurancecompany’sman.

“No,”saidhe,“youwon’tbeparkingthemthere.Iownthatparkinglot.Theminuteyoutakeoverthehotel,aneight-footchain-linkfencegoesaroundthatlot,andincaseyouhaven’tnoticed,thereisn’tanotheradequateparkingfacilityyoucanusewithinathree-blockradius.”

TheNewYorkinsurancecompanydecideditcouldlivewithBob’spaymentpractices.

Lesson30

MakeYourDecisionswithYourHeart,andWhatYou’llEndUpwithIsHeartDisease

Ihavealwaysbeenpassionateaboutsports,asyoumayhavegatheredbynow.Ialsolovetomanage.Sowhentheopportunitycamealongafewyearsbacktoownaprofessionalsportsteaminabrand-newsportsleague,theynearlyhadtoputmeinrestraintstokeepmefromsigningup.

Thiswasthedeal:In1971,agroupofprominentbusinessmengottogethertolaunchanewsportsconcept,theInternationalBasketballLeague—theIBL.

Internationalcommunicationswereintheirinfancy.TheageofMarshallMcLuhan’s“GlobalVillage”wasdawning.Sportswereavivid,enduringsymbolofinternationalbrotherhood.AndherewasI—destinedtobecomeaFoundingFatherofglobalsportsforPlanetEarth!

TheplanwastotakethesportofbasketballandtransplantanNBA-styleleaguefirsttoEuropeandtheMiddleEast…andthendoubtlesstoallfourcornersoftheworld.Imagineit:FromSamoatoSmolensk,theworldwouldberingedwithonehugebasketballhoop.

PhaseIwastocreatefranchisesineightcities:Rome,Amsterdam,Madrid,Munich,TelAviv,Geneva,Brussels,andDüsseldorf.IdrewDüsseldorf,andIwasfantasizingjourneyingofftoGermany—munchingawurstandsippingAltBierasIstrolleddownDüsseldorf’sposhKönigsallee,imaginingmyselfasEurope’sBaronvonBasketball.

Europe’sBaronvonBasketball.

Whenthetimehadcome,theorganizersgatheredtheprospectstogetherinahugehallinHouston.Wewerewinedanddinedlikeinternationaldignitaries.Theroomwascharged,therewerespotlightsandmicrophoneseverywhere.ItwaslikeamarriageoftheUNSecurityCouncilandthecollegefootballdraft.

Therewerespeeches,therewashoopla.Therewerepromisesofgloryandriches.Thentherewasthesettingofthehook—ahookIhadseensetcountlesstimesatfund-raisingdinnersbefore.Thepriceforinvolvement,forbeingpartofthedream,wasano-recoursedownpaymentof$250,000.Aroundtheroomthespotlightwent:“Madridpledges$250,000,”“Munichpledges$250,000.”FinallytheycametoDüsseldorf,andmyheartwasinmymouth.ThemandarinsofthemightyIBLhadsetatablefromwhichitwasallbutimpossibletowalkaway.Therewasemotionalandphysicalexhaustionafterweeksofhead-splittingnegotiations.Therewasthedisorientationoflivinginstrangehotelroomsinexoticsettingsfollowedbyexotichotelroomsinstrangesettings.Therewaspeerpressure.Therewasguilt.Therewaspride.Itwaslikeafund-raiserwhereeveryoneelseintheroomhasannouncedtheirpledge—exceptyou—andnoweveryeyeballintheplaceisboringintoyourskull.

Theemceeatthemicrophonerepeatedthequestionsoftlybutwithintensity:“Düsseldorf.MaywehaveDüsseldorf’spledge.”

It’syourturn,pal.

Iwanttosayyes.Ihavetosayyes.

ButIsay,“Düsseldorfpasses.”

Anddoyouknowwhathappened?

Nothinghappened.

Theworlddidnotstopspinningonitsaxis.Therewasthepredictableflurryofwhisperingandhead-shakingacrosstheroom.Ihadflinchedatthefiringline.

WhyhadIpassed?Passed.Wheneverythingseemedsoright.WhenitwassomethingIsodearlywanted.Thetruthis,Idistrustedthemechanismforgettingcommitments.Itmademesuspiciousoftheentireplan.

Asitturnedout,mygutwasright.TheIBLfoldedafteroneseasonofplay.Eachfranchiseelostasmuchas$1millionintheprocess.

Now,sometimesworthycauses,fullydeservingofsupport,raisemoneyinthisway.Thecausemaybeworthy,butinmyopinion,themethodneveris.Youhavenotonlytheright,butalsothepersonalresponsibilitytothinkinacoolandcalmwayaboutanymajorinvestmentyouareaskedtomake.Nevermakeasignificantdealthatisproposedtoyou,adealthatisgoingtoinvolveyourcommitmenttospendyourownmoney,onthespurofthemoment.Thereisnomorecertainrecipefordisasterthanadecisionbasedonemotion.

Youmaynevergettrappedinalavishhotelsuitewithsevenothersports-madbusinessmenhungryforstatusontheinternationalscene,butsomewherealongthelinesomethingsimilarisgoingtohappentoyou.Someoneisgoingtosaythisisabsolutelyyourlastchancetoaccepttheirgenerousoffer.Someoneisgoingtomakeyouanofferyoucan’trefuse.Whereeverystephasbeenchoreographed,everynoteorchestratedtoleaduptothatonemoment,themomentwhenit’syourcue,yourduty,yourresponsibility,tosayyes.

Sayno.

Lesson31

NeverBuyAnythinginaRoomwithaChandelier

IncasemyIBLexperiencedoesn’tpersuadeyou,here’sastorybyanoldpolthatwillillustratemypoint.

Thetimeisthewinterof1967–68.ThesceneistheO’HareInnnearChicago.FiftyorsixtyGOPoperativesaremeeting.TheyareNixonsupporters,manyofthemnationallyknown,includingSenatorsEverettDirksenandHiramFong,GovernorJohnLodge,formerCongressmanBoCallaway,andthepresider-over,afutureattorneygeneral,RichardKleindienst.Theyaregatheredtoplotstrategyandcountdelegates…andsimply,byshowinguptogetherinthesameroom,hypeeachotherwiththestrengthofNixon’sdevelopingefforttocapturethenominationinMiami,sixmonthsaway.

It’sanimpressiveshowing.There’samockrollcallofthestates,where,unsurprisingly,Nixonwinsonthefirstballot(which,surprisingly,helateractuallydid).KleindienstplugsintoNixoninNewYork,andviaspeakerphone,Nixongivesalittlepeptalk,whichreachesitscrescendoinapromisethat,whenhe’selected,everyoneintheaudiencewouldhave“jobs.”It’sthebiggestapplauselineoftheday,thoughtheappealofjobstoUnitedStatessenators,whoalreadyhadprettygoodones,seemshardtofathom.

Themeetingadjourns.

Mostpeopleleave.Myfriend,whowasasmall-timeoperativerunningasmall-timeportionofthecampaignthatfocusedonvolunteergroups,trailed

small-timeportionofthecampaignthatfocusedonvolunteergroups,trailedafterBudWilkinson,aformerheadfootballcoachatOklahomaandanunsuccessfulGOPcandidateforsenatorfromthatstate,toaremotesuiteattheinnforfurtherinstructions.

Therewereallthebiggiesfromthemeeting,includingKleindienst.TakingfurtherrefreshmentandholdingforthinonecornerwasacongressmanwholaterbecameacabinetmemberintheNixonadministration.

Thecongressmanspeaks:

“Ineverynationalcampaign,thereisaspecialoffice,usuallyrightinthecenterofthecountry,hereinChicago.

“Theofficehastohaveachandelier.That’scritical.Thishastobeoneveryimpressiveoffice.

“There’sabigdeskandseatedbehindthedeskissomeonewhoappearstobethecandidate’sinnermost,closest,mosttrustedadviser.

“Andeverydayduringthecampaign,peoplecometothatofficeandbringmoney.

“Notreallybigmoney.

“NotDallasmoney.

“Mediummoney.

“Andtheytellthetrustedadviserwhatitistheywant,becausenobodygivesanybodymoneyinAmericawithoutwantingsomethinginreturn.Usuallyit’stobeanambassadororanundersecretary.

“Now,mediummoneywouldn’tgetyouintotheambassador’spantryinSriLanka,butyoucan’tdumponpeoplewhogiveyoumoneyjustbecausetheydon’tknowhowtheworldworks.

“Sothemanbehindthedesk…nodsgravelyandtakesnotesonabeautifulMarkCrosspad.

“Thedonorgoesaway.He’shappy.Hecantellhiswifeandhisfriendshetalkedtothenextpresident’sbrother.He’llevengetabeautifulcopyofaletter

talkedtothenextpresident’sbrother.He’llevengetabeautifulcopyofaletteronfancystationerythatthebrothersendstothecandidate,talkingaboutJoeSuitcase’s‘deepcommitment’or‘verydeepcommitment’toourtiger’scandidacy.Andbestofall,wecanforgetabouthim,becauseanyonedumbenoughtolethimselfgetsteeredtothatofficeinChicagowiththechandelierisn’tworthworryingaboutlateron,justincasewedowinthepresidency.”

Nixon’steamincludedcrackfund-raisers.The$60millionwarchesttheyputtogetherallowedNixontotrounceDemocratGeorgeMcGovern.Butthencamechargesoffund-raisingimproprietyandNixon’sWatergate-drivenresignation.Grandandglamoroussurroundingsmesmerizepeople.LookwhatBillandMonicathoughttheycouldgetawaywithintheOvalOffice.Andthereisn’tevenachandelierinthatroomoftheWhiteHouse!

We’veallhearditsaidthatifanypropositionlookstoogoodtobetrue,itprobablyis.Butbeforeyoudecidetoinvest,lookbeyondthepropositionitself,and

IfthesurroundingsaretoograndIftherearetoomanyunfamiliarfacesIfitistoofarawayfromhomeIfthepeoplearetooniceIfthebusinessistooglamorousIfthetitlethatcomeswithyourparticipationistooelegant—inotherwords,evenifthepropositionseemsright,butifconsideredinthecontextofalltheseotherfactors,itallseemsalittletoomuch,

then,myfriend,justrememberthesetwomagicwords:DÜSSELDORFPASSES,andgrabyourcheckbookandgetthehelloutofthere.

Lesson32

Everything’sNegotiable

Withinthepastfewyears,someofthebest-knownnamesinAmericanindustry,likeArthurAndersen,Compaq,andWorldCom,havedisappeareddownthegapingmawsofothercompanies.Otherseeminglyunassailablefortresses,likeAT&T,havebeendisassembledandthepartssoldoffseparately.Nothingunusualaboutthat.Capitalism,bydefinition,isasysteminwhicheverythingisforsale.

Ifhugeenterprises,somesovaluabletheirassetsexceedthoseofmostofthenationsintheworld,canbeboughtandsold,cutupintolittlepieces,orputtogetherintobiggerpieces,likeaheapofscrapiron,thenthere’snodealthatyouandIcouldcontemplatethatcan’tbeputtogether.Adealcanalwaysbemadewhenthepartiesseeittotheirownbenefit.

Nineoutoftenlawsuitsaresettledbeforejudgmentisrenderedinthecourtroombecauseeventhebitterestofadversarieswillsitdownatthesametablewhentheycanbeshownthereisagreateradvantagetothemselvesinnegotiatingthaninfighting.

Whateveritisyouaretryingtobuyorsellcanbeboughtorsoldifyoucangettheothersideofthetabletoseehowthedealworkstotheiradvantage.

It’ssaidthatwhenMosescamedownfromthemountainaftergettingtheTenCommandments,hesaid,“Well,wereasonedtogether.IgotHimdowntoten,butadultery’sstillin.”

ten,butadultery’sstillin.”

Lesson33

TheBuyer/SellerBattle

Inthewarbetweenbig-hatsellersandbuyers,thesellerusestheweaponsoftheoffense:

reconnaissance,throughdevicesliketheMackay66infiltration,concoctingpersonalityandevenethnicmatchupsbetweensellerandbuyerpropaganda,throughadvertisingandPRshiftingtactics,probingfortheweaknessesinthebuyers’defenses,thatoneyes,thatonetelltalecluethatwillopenupthelinespersistence,pressure,andultimatum

Thebuyerusestheweaponsofthedefense:

reconnaissance,throughbufferslikeclones(seepage73)time,atacticwhichalsoincludestheuseofdistance,evasion,confusion,humor—anythingthatwillincreasethebuyer’spoolofinformationandexhaustthesellerintoconcedingmorefavorabletermsminorskirmishes,testingthewaterstowinconcessions…andagain,wearingouttheseller

ambushes,last-minuteultimatumstowringmajorconcessionsafterthesellerthinkshehasadealandisalreadymentallycountingoutandcountingontheprofit

Aboutanequalmatchup,isn’tit?Whowins?Sameasalways:theplayerwiththebetterinformation,thebetterplan,andgreaterskill.

CHAPTERFOUR

HarveyMackay’sShortCourseinManagement

Lesson34

TheSingleGreatestMistakeaManagerCanMake

Youdon’thavetobeatyranttogetAmericanstoworktogether.Hitler’snotionofwhattheAmericancharacterisallaboutwasgleanedfromhisreadingofWesternnovelsbyKarlMay,booksthateveryGermanboywasbroughtupon,byamanwho’dneversetfootintheUnitedStates.Butthatdidn’tstopHitlerfromholdinganunshakableopinionabouttheUnitedStatesandhowitworked.Lookingatthebarrageofcompetingideasthatspringfromourtoleranceoffreeexpression,Hitlersawwhatheassumedmustbetotalchaos.Heenvisionedadisorganizedsocietyand,asaresult,onethatwasweak,vulnerable,anduncommittedtoanysustainedeffort.

IrememberthatoneofmymostexcitingexperiencesasaboycameduringWorldWarIIwhenmydadarrangedtotakemealongonanairplanefilledwithreporterstowatchabigcontestbetweenMinneapolisandSt.Paul.Itwastoseewhichcouldblackoutitscityfasterinanairraidalertpractice.Theplaneflewalongtheborderbetweenthetwocities,andIpressedmyfaceashardasIcouldagainstthewindowsoIwouldn’tmissanything.Whentheairraidsignalsounded,thelightswentoutasifanunseenhandhadflickedoffasingleswitch.

HitlerfoundoutthatAmericansofeveryvarietyofopinionandbackgroundcanpulltogether.Youjusthavetogiveusareason.

That’swhatmanagersaresupposedtobeabletoprovide.

Motivation.Goals.Resources.Leadership.Butnotrestrictions.Notbeingtoldwhattodo.Notrules.Oh,God,howAmericanshaterules.OneofthesharpestentrepreneurseverwasGardnerSymonds,aformerchairmanofTenneco.TennecopeopledescribeSymondsasthepersonwhohadthevisiontomakeTennecoAutomotiveahighlyfocused,multibillion-dollarcompanyspecializinginautomotiveproductsandsystems.IhaddinnerwithhimoncewhenhespokeataseminaratStanford.

Hesaidtherearefourthingsyouneedtodotobuildasuccessfulbusiness.One:Findthecapital.Two:Findafavorableenvironmenttoemployit.Three:Hirethekeypeople.Andhere’swherehetookalongpauseandsaid,“Sofar,I’mnottellingyouanythingyoudidn’talreadyknow,becausenumberfouristheimportantone.Thenyou’vegottoknowwhentogetthehelloutoftheway.That’sthehardestpart,butthat’stheonethatwillmakeyourich.”

Ihaveafriend,PatFallon,whorunsanadvertisingagency.Withinthreeyearsofthetimeheopenedhisshop,AdvertisingAgenamedFallonWorldwideasAgencyoftheYear,theequivalentofsweepingtheAcademyAwards.Itwasanunheard-ofhonorforanagencythatnew,andonelocatedinneitherNewYorknorL.A.butinthe“fly-overland”oftheMidwest.

Fallon’smanagementstyleisidealforthefragilecreativeegoshehandles.They’renotexactlydress-codetypes.Ifhetriedtoenforceawhite-shirtrule,theplacewouldemptyoutinfifteenminutes.Buthehasthesameproblemeveryoneinthebusinesshas:gettingoutasuperiorproduct.Hedoesitbymaximizingpersonalfreedomandthuspersonalresponsibilitytoanalmostunheard-ofextent.

APRfellowIknowwhoworkedforhimatanotheragencysaid,“IwastheretwoyearsbeforeIevenknewFallonwasmyboss,andthatwasonlybecauseheleft,andtheguywhoreplacedhimtoldmeI’dbereportingtohiminsteadofFallonfromthenon.”

Fallonunderstandsthatinhisbusiness—andinyours,morethanyourealize—whatpeoplearelookingforisn’tonlymoney,it’srecognition,appreciation,andcreativefreedom.Hegivesthemwhattheyneed.Theygivehimwhatheneeds:thebestproductintheindustry.

Fallondoesn’tgiveorders;hefacilitatesthecreativeprocessbyhardwork

andaccessibility.Intheadgame,yourinventoryisideas,andtheycancomefromanyone,anywhere.Artdirectorsareascapableofgreatcopyascopywritersareofgraphicconcepts.Thekeytokeepingtheideasflowingisanatmospherewhereeveryonecanfeelfreetocontribute.Thatatmosphererequiresabarrier-freeenvironment.That’swhyifyoupickupthephoneandcallFallon,yougetFallon…withoutanyoneaskingwhoyouareorwhatyouwant.Therearen’tmanyadvertisingagenciesapproaching$1billioninbillingsaroundtheworldwhereyoucangetthebossonthephonewithoutpassingthroughareceptionistandthreeassistants.ThoughFallonprobablytalkstomoreinsuranceagentsandstockbrokersthanhewantsto,it’sasmallpricetopayforcreatingthebestadvertisingagencyinthecountry.

Nomatterwhatbusinessyou’rein,tobesuccessful,managersmustcreatethekindofenvironmentthatmakestheirpeoplethemostproductive.Itisn’tenoughtomakethemconsciousofdetailsifyoudestroytheirsenseoffreedomandspontaneityintheprocess.Youmustunderstandthemwellenoughtogivethemnotwhatyouwant,butalsowhattheyneedtomakeamaximumcontribution.

Lookatthepeoplewhowalkoutyourdoorandleaveyoutobecomesuccessfulattheirownbusinesses.Chancesarethey’renotdoingitjustforthemoney.Theyneedtheroomtoexpresstheirownstyles.Givethemthatroom…andtherecognitionandappreciation…andnineoutoftentimestheywon’tleave.Overrecentyearsalotoftermshavebeencoinedtodescribesetupsthatletentrepreneursthriveinbigorganizations:fromskunkworksto“intrapreneurship.”Thesearenewformsofcapitalism.It’sfuelingnewformsofinnovationwithcapital.Itgivesmenandwomentheopportunitytorealizetheirownideawithoutleavingthecompany.Onestepshortoffullpartnership,itstillletsthebestbecomepresidentsoftheirowncompanywithinacorporateframework.

Wehaveasharpyoungpersoninourfirmwhocouldeasilyhavebeenagreatsuccessonhisown,andhehadreachedthepointwhereherealizedit.Justintime,wefurnishedhimthecapitalandtheinfrastructuretomanufacturehisownspecialtylineaspresidentofMinnesotaColorEnvelopeCompany,aMackayEnvelopesubsidiary.Sure,it’snotasprofitableforusasitwouldhavebeenifhe’dbeencontenttostayonasanordinaryemployee.Butthatwasn’tthealternative.Thealternativewaslosinghimandwindinguphavinghimasacompetitor.

LyndonJohnsonprovidedtheultimatejustificationforthatkindof“intrapreneurship,”albeitanegativeone,indescribinghisrelationshipwithJ.EdgarHoover:“I’dratherhavehiminsidethetentpissingoutthanoutsidethetentpissingin.”

Soremember,youcangetyouremployeestopayattentiontodetail,andrunyourshiplikeanAmerica’sCupyacht,ifyoudevelopaleadershipstylethatdeliversyourmessageinapositiveway,andifyoudemonstrateyourconfidenceinyourpeoplebygivingthemfreedomtodothejobyouhiredthemtodo.

BelikethosegreatjockeysJerryBailey,LaffitPincay,orWillieShoemaker.Theyallknowthatbeingtopsinthesaddleoftenmeansbeinglightonthereins.Theysaythehorseneverknowssuchajockeyisthere—unlesshe’sneeded.

Lesson35

WhenaPersonwithMoneyMeetsaPersonwithExperience,thePersonwiththeExperienceWindsUpwiththeMoneyandthe

PersonwiththeMoneyWindsUpwiththeExperience

WhenIbought—orrather,whenIwasdumbenoughtogetstuckwith—anenvelopecompany,ithadtwelveemployees,salesof$200,000annually,andasackfulofnutsandboltsthatpassedforenvelope-makingequipment.IthoughtIwasbeingverybusinesslikewhenIaskedtoseethebooks.“Forgetthebooks,sonny,”mycharmingpredecessorsaid.“Takeitorleaveit.”

WhenIsaidI’dtakeit,thelawyerIhadhiredtoadvisemeinthistransactionquit.ForthefirstfiveyearsIteeteredbetweenbankruptcyandinsanity.

NothingIlearnedduringthoseyearsabouttheenvelopebusinesswasasvaluableaswhatIlearnedaboutlawyersandaccountants.Lawyersandaccountantsmakeexcellentlawyersandaccountants.They’regreatspecialistsinwhattheydo,butyoumightaswellrelyonapodiatristforspecificbusinessadvice.

IalsolearnedsomethingaboutdealingwiththatgreatAmericaninstitution,thelabormovement.

Attheendofyearone,myemployees,sensingthatperhapsIwasnotgoingintothetankafterall,begantoanswerthesirensongofthelabormovement.Beforetheycouldtakeavote,IcalledmynewlawyerandaskedhimwhatI

Beforetheycouldtakeavote,IcalledmynewlawyerandaskedhimwhatIcoulddo.

“Harvey,”hesaid,“youcan’tfirethemforconsideringaunion,andyoucan’tthreatenthem.Thatwouldbeanunfairlaborpractice.Butyoucancallthemintotheoffice,oneatatime,andtellthemofthegreatprogressthatthey’llmakeifonlywecanallstriveforacommongoal,withoutoutsideinterferencetellingushowtorunourbusiness,andsoon.”

Andsothat’swhatIdid.

Oneatatime,Icalledthemintotheoffice.Oneatatime,Itookthemtothetopofthemountainanddescribedthegloriouslandscapethatlayatourfeetifonlywecouldcontinuetoworktogetherinthefutureaswehadinthepast.Andoneatatime,mytwentyemployeestoldmethatasaresultofmystirringspeech,heorshewouldcasttheirvoteagainsttheunion.

Thatis,allexceptoneemployee.Hesaid,“Mr.Mackay,mygrandfatherwasaunionman,mydadwasaunionman,andI’maunionman,andI’mvotingunion.”

Thereitwas.Iwasgoingtowin,nineteentoone.Withsurprisingease,inmyveryfirstattempt,atthestill-wet-behind-the-earsageoftwenty-six,Ihadprovedmyselfabornmasteroflaborrelations.

Thiswastooeasy.Iwasanentrepreneur!Icouldn’twaittocallmylawyer.Heseemedsomewhatrestrainedinhispraise,butItookthattobetheresultofatouchofjealousyatmyhavingshownsuchnaturalaptitudeforaskillithadtakenhimyearstoperfect.“Callmeafterthevote,”hesaid.

Thenextdaytheyheldtheelection.Sureenough,thevotewasnineteentoone—infavoroftheunion!I’dlost,nineteentoone;they’dhandedmemyhead.ThiswasnotthewayI’dlearneditinLaborRelations101.

WhatIdidlearnwasthatIhadtobereadytomakeveryrapidmidcoursecorrectionsinsmallthingstokeepmymajorbusinessobjectivesintact.Or,asmyfathertaughtme,“Itdoesn’tmatterhowmanypailsofmilkyouspill,justsoyoudon’tlosethecow.”TheendofthestoryisthatIraisedmypricessoIcouldaffordunionwages.

IntheyearssinceIlearnedthoselessonsandtookmyfirstbumblingstepsin

IntheyearssinceIlearnedthoselessonsandtookmyfirstbumblingstepsinbusiness,MackayEnvelopehasgrowntoover550employees,salesofapproximately$100million,andmodernplantsinMinnesota,Iowa,andOregon.

MackayEnvelopedidnotprosperbecausetherewasashiftintheeconomyinfavoroftheenvelopeindustry,nordidIuncovertheperfectproductattheperfecttimeorcarveoutanewmarketniche.Envelopesfallundertheclassicdefinitionofamatureindustry,àlasteelandcement.Ourproductsareconstantlybeingassaultedbysexier,moreconvenientmeansofcommunications.ManymarketingpunditssawthedawnoftheInternetAgeasthedoomoftheenvelopeindustry.Butafunnythinghappenedonthewaytothejunkheapofcommercialhistory.Thedeathofthedirect-mailindustryhasbeengreatlyexaggerated.In2004,wefounddirect-mailmarketingclimbingatarateof5to8percentayear!E-mailhascausedadeclineinbusiness-to-businessandfirst-classmailbutnotincommercialmailingstohouseholds.

Toincreaserevenues,thesuccessfulenvelopeentrepreneurhasbutonelogicalstrategy:takethemarketsharefromsomeoneelse.Thatmeanssalesmanshipandtheabilitytomanageabusinesswheremarginscanbewafer-thinandyoucanbarelytellyourownproductsfromyourcompetitor’s.Unlikefarming,youcan’tevengetthepoliticianssufficientlyinterestedtomakespeechessayingyou’rethebackboneoftheAmericanwayoflife.Theenvelopegameseemstolacktheglamourandvisibilityofhighercallingslikethese,sowhatI’velearned,I’velearnedbygettingslam-dunkedoftenenoughuntilthemessagesunkin.

Lesson36

You’llAlwaysGettheGoodNews;It’sHowQuicklyYouGettheBadNewsThatCounts

Ihaveoneironcladruleformyself.IwalkmyplanteverydayjustlikeitsaysinInSearchofExcellence.Icanlearnsomethingnewandgetthefeel,touch,andpulseoftheplacewithoutanyonehavingtosayasinglewordtome.Withoutasingleword?Absolutely.Dowivesandhusbandshavetoannounceeachother’smoodswithadrumrollandtrumpetfanfare?

Acapablemanagerwalkshisplantandgetsthegoodnewsbeforeanyoneelse.

Anoutstandingmanagergetsthebadnewsfirst.Nobodywantstobethebearerofbadtidings,becausethattriggersthekill-the-messengersyndrome.Ifyou’reincharge,youhavetoencouragetheflowofbadnews,becauseifyoudon’t,badsituationsgetworse—beforeyoucanstopthehemorrhaging.

Ifyouronlymeansofcommunicatingupwardisaformal,operations-manualkindofsystem,you’remakingamistake.Don’trelyontheformalchainofcommandtoprovideyouwiththebadnews.Ifthere’saproblem,themanagerinthatareawillalwaystrytosolveitbeforeyouhearaboutit.He’lljustifyhisactionasbeingwithinhisscopeofresponsibility,buthe’llbemotivatedasmuchbyasenseofwantingtocoveritupbeforeyouhearaboutit.

Youneedasecondlineofcommunications.Youhavetoencouragenotonlyyourownpeople,butyourcustomers,too,totalktoyouinformally,tofeel

yourownpeople,butyourcustomers,too,totalktoyouinformally,tofeelcomfortableapproachingyouinthehallsandgettingconcernsofftheirchests.

OneofthelargestandmostsuccessfulretailersintheworldisTarget.Thereisnotougherbusinessthanretailing.Lookatsomeoftheretailgiantsthathavegoneunder,AmericaninstitutionslikeWoolworth,W.T.Grant,Zayre,MontgomeryWard,Bradlee’sandCaldor,orthosethathavegottenintotrouble,likeKmart.

TargetisthenewnameassignedtoacorporationlongknownasDaytonHudson.Severaldecadesago,thefiveDaytonbrothersinMinneapolispropelledthisfirmintoprofessionalmanagementandsetthestagetomakeTargetthesecond-largestgeneralmassmerchantafterWal-Mart.HowdidtheDaytonbrotherssetthestageforretailsuccesswheresomanyothershavefailed?Formanyyears,youcouldaskDonDayton,buttheplacetofindhimwasnotinhisoffice.Itwasoutonthefloorofhisstore.Whenhedidgotohiseleventh-floorofficeinthedowntownMinneapolisDayton’sdepartmentstore,itwasneverbyelevator.Dontooktheescalator.Hecouldseemoreofwhatwasgoingonthatway.That’showTargetCEOBobUlrichandsomanyTargetexecutivesovertheyearslearnedtheropes.Thatisn’tjustwalkingthestore.That’smindingthestore.Themarkofarealpro,nomatterwhatthebusiness,isrecognizingthattheabsolutelybestbusinessinformationyoucangetisneverfoundinareportorothersecondhandinformation.It’sasteadydietofnose-to-nose,constant,immediate,unfilteredfeedbackfromyourcustomersandemployees.

Lesson37

ThrowItontheFloor

IhaveaverysimplewayofmakingsurethatajobIreallydon’twanttodogetsdone.Iwriteoutabriefdescriptiononasheetofyellowlegalpaperandthrowthepaperonthefloornexttomydesk.Togettomydesk,Ihavetogothroughthenuisanceofsteppingaround,over,oronit.Whateveritis,itgetsdoneinahurry.Geniusmaynotalwaysbeequatedwithmessiness,butthefollowingwordsareverymuchtothepoint:

Picturetoyourselfthedarkest,mostdisorderlyplaceimaginable…blotchesofmoisturecoveredtheceiling;anoldishgrandpiano,onwhichthedustdisputedtheplacewithvariouspiecesofengravedandmanuscriptmusic;underthepiano(Idonotexaggerate)anunemptiedchamberpot;besideitasmallwalnuttableaccustomedtothefrequentoverturningofthesecretaryplacedonit;aquantityofpensencrustedwithink,comparedwithwhichtheproverbialtavernpenswouldshine;thenmoremusic.Thechairs,mostlycane-seated,werecoveredwithplatesbearingtheremainsoflastnight’ssupper,andwithwearingapparel,etc.

ThatpassageisfoundinTheLivesoftheGreatComposers,byHaroldC.Schonberg.ItisBarondeTremont’sdescriptionofBeethoven’s“office.”

Lesson38

TreatYourSupplierstheWayYouTreatYourCustomers

DespitethefancyfruitbasketsatChristmastimeandtheexpenseaccountlunches,mostofusthinkofsuppliersliketheoldU.S.NavyOfficer’sManualdescriptionofenlistedmen:“Theyareignorant,buttheyareshrewd.Theybearwatchingatalltimes.”

TheBillyGrahamorganizationtakesadifferentapproach,onethat’salotclosertotheGoldenRulethanitistotheNavyManual.Foronething,suppliersdon’talwayshavetobidfortheirbusiness;BGdoesn’tnecessarilybasesupplydecisionsonmeetingspecs.Here’sanexampleofhowtheydoit.

Afriendofmine,let’scallhimAl,isinthepublic-relationsbusiness.Heservesasanoutsideadviseronachurchboardpublic-relationscommittee.He’safriendofthepastorandsuchanindefatigablePRtypethathedoesitforthefunofiteventhoughhedoesn’tbelongtothechurchandishardlywhatIwouldcallreligious.AnothermemberofthesameadvisoryboardisanofficeroftheGrahamorganization.Let’scallhimArthur.

ItsohappenedthatAlwasloudlyandpubliclyfiredfromhisjob.Therewasnowayanyotherfirmintownwouldhirehim,soheopenedupanofficeonhisown.Aboutthreeweeksafteropeninghisdoors,andmostlytwiddlinghisthumbs,hereceivedacallfromArthuratBG.Untilthen,AlhadneverseenArthuroutsidetheboardmeetings.ArthuraskedwhetherhewouldhavetimetohelpdevelopamarketingplanandsomePRmaterialsforoneoftheircampaigns.Almanagedtofindthetime.Whenhehadcompletedtheproject,

campaigns.Almanagedtofindthetime.Whenhehadcompletedtheproject,ArthuraskedAltobringoverhisbill.Althoughtthatwaskindofcurious—mostpeopleexpectyoutomailitin—buthefigured,well,theywanttogooveritwithme.SoAlnervouslyputtogetherhisstatementverycarefully,itemizedeverything,andwentover.

Arthurbarelyglancedatit.Hecalledhisassistantinandsaid,“WillyouseeifwecancutAl’scheckrightnow.”And,ofcourse,theydid.Hewaspaidbeforeheleftthebuilding.

Wheredotheytellyouinbusinessschooltopayyoursupplierswhentheyhandyouthebill?Aren’twesupposedtohangontoourcashaslongaspossibleandworktheinterestforthemaximumreturn?Didanyoneyouknoweverchewouthiscontrollerbecausehepaidasuppliertoolate?

There’salittlemoretothestory.It’sChristmastimethreeyearslater.Al’sbusinesshastakenoff;he’sthriving.HedidseveralmoremajorjobsforBG,butashegotbusier,hedidn’thearmuchfromthemanymore.Thephonerings.It’sArthur.WouldAllike“alittleextraholidaymoney”?Theyhaveajobthatneedshisimmediatepersonalattention.BythistimeAlhastenemployees.He’stryingtohiretwomorethatweekandthey’reuptotheirearsinwork.“ItoldhimIwasreallyasbusyasIhadeverbeen,”saidAl,“butiftheyreallywantedmyhelp,ofcourse,I’dbehappytodoit.Orevengivethemthenameofsomeoneelsewhocouldhelp.”“No,”Arthursays,“I’lltakecareofit.Thanksanyway.Gladyou’redoingsowell.”

“Wetalkedforalittlewhilemore,justchitchatstuff,butwhenIhungupthephone,Istartedtoshake,andthenIstartedtocry.AllthosejobsI’ddonebefore,allthebusinesshehadgivenmewhenIwassittingtherebymyself.ThenaggingsuspicionI’dhadfromthebeginningwasconfirmed.Itwasn’tbecauseIwassuchagreatPRguy.Therearemanyintownwhocouldhavedoneitbetter.TheyknewtheterritoryalotbetterthanIdid.ButArthuraskedmebecausetheyknewIwashurting,andIneededthebusiness.Andthentheycalledmeagain,justcheckingin,kindof,toseeifIstillneededhelp.NobodyI’veeverdonebusinesswithbeforehasevercaredaboutmethewaytheBillyGrahamorganizationdid.AndI’mJewish.”

Thatafternoon,Alsentthemanicebigcontribution.Hestillsendsthemcheckseveryyear,andhehasn’tdonebusinesswiththeminyears.BGhadcaredabouthimwhenitcounted;hehasneverforgottenit.Andheneverwill.How

manycompaniescansaytheyhavemadepermanentcustomersoutoftheirsupplierslongaftertheyceasedtofurnishsupplies?Byhelpinghimwhenheneededit,BGearnedloyaltythatnoamountofmoneycouldbuy.BGhasrecognizedabusinessprinciplethatissoelementary,socorny,thatweseldomeveruseit:Ifyouexpecttheotherguytocareaboutyou,showthatyoucareabouthim.SoundsprettyclosetothatGoldenRulebusinessagain,butdoesiteverworkforBG.WhatkindofservicedoyouthinkBGgets?Whatkindofreputationdotheyhaveinthecommunity?Whatkindofpricesanddeliverydotheygetfromtheirsuppliers?

IcanansweralloftheabovebecauseI’manothersupplier,andaJewishone,too,thattheBillyGrahamorganizationhelpedgetstartedinbusiness.Theygetthebestquality.Theygetthebestdelivery.Theygetthebestprices…youcanbecertainthattheyknowwhattheyshouldbepayingeventhoughtheydon’tgetbidsfortheiroutsideneeds.Ifyouovercharge,youstillgetpaid,once,andthenyouneverhearfromthemagain.And,ofcourse,becausetheypaysopromptly,youdon’thavetobuildanannoyanceorcost-of-moneyfactorintoyourbilling.Simplystated,theyareregardedasthefinestaccountintown,notjustbecauseofthewaytheypay—I’vegottenpaidmanytimesbeforeIshipped,absolutelyunheard-ofintheenvelopebusiness—butalsobecauseofthequalityofthepeopleatBG.Infact,we’rewillingtotakelessjustfortheprivilegeofdoingbusinesswiththem.

Thewayyoupayyourbillssayssomethingaboutthekindofpersonyouaretodealwith.Whetherit’sthemanwhopaintedyourhouseorthefirmthatdeliversyourrawstock,you’llalwaysgetabettershakeifyoupaythesamedayyougetthebill.

Lesson39

TheTimefortheRenaissanceManWastheRenaissance

ThesuccessoftheBillyGrahaminitiativeisareflectionoftherelationshipoftwoextraordinarypartnerswhobuilttheorganization.Eachhaduniquetalents.BillyGrahamhimselfwasthequintessentialMr.Outside.HeembodiedtheimageoftheorganizationbothtotheoutsideworldandtothepeoplewhoworkatBG.Hischaracter,hisleadership,hisenormouspublicpresence,andhisfollowingareattheheartofthetremendousmoralethatsurroundstheplace,eventhoughitissoinconspicuousyoucanbarelyfindthesignonthedoor.ThelateGeorgeWilson—whopassedawayin1999—wasMr.Inside.WhileBillyprovidedtheinspiration,Georgekepttheplacehumming.AsMr.Inside,Georgewaslow-profile,low-key,tireless,withaneyefortalentanddetail,withaneasygoing,warm,one-on-onestyleandabsolutelycommittedtoBillyandrunninganefficient,modernoperation.

Mostorganizationsandespeciallymanufacturingcompaniesneedboththesetalents:thesalespersonwhobringsinthebusinessandthemanagerwhoknowswhattodowithit.Butyou’dbesurprisedhowmanybusinessestherearewheretheyeitherdon’tunderstandthatthosetwotalentsseldomruntogetherinthesamepersonorwheredestructiveconflictsbetweentheinsidetypesandoutsidetypesenduptearingtheplaceapart.

IrememberreadinginTheNewYorkTimesMagazineaboutturmoilthatonceexistedatLehmanBrothers,aWallStreetinvestmentbankinghouse.Arough-edgedMr.Inside,LewGlucksman,succeededindrivingouttheirMr.

Outside,PetePeterson,andwithinayearthisproud,hundred-year-oldfirmwasswallowedupbyShearson.

Glucksmanthoughtheandotherinsidetypescoulddoitall.Hefoundoutotherwise.

Ihaveastockbrokerfriendwhousesaformulaforinvestingthat’sbasedontheMr.Inside/Mr.Outsiderule.Wheneveracompanygoespublicforthefirsttime,theunderwriterusuallyholdsaninformationalmeeting.Theytakeplaceinfairlyelegantsurroundings,sothatasthenicetiesareobserved,thestockbrokerscanbesubjectedtothepitchfromthecompany’sexecutivesthatwillinducethemtogooutandpeddlethestocktotheircustomers.

“Usuallythepitchforthestockismadebythecompany’sMr.Outside,”saysthestockbroker,“butifthere’snoMr.Insideupthereatthespeaker’stable,wearingabrownsuitwithsleevestwoinchestooshort,Ipassonthedeal.ThesameiftheshrimponthebuffettableareasbigasyourfistandtheScotchisthereallygoodstuff,“causethatmeansthere’snoproductthere.Nomanagerthat’sworthanythingorhasanycloutwouldletthecompanybuyJohnnieWalkerBlackforabunchofstockbrokers.”Hesaysithasn’tfailedhimyet.

I’mnotaMr.Inside.Ican’tdoitall,butittookalongtimeformyegotoacceptthat.WhenIdid,Iwentoutandhiredakeymantorunmyplantandmadehimthepresidentofthecompany.HedoesamuchbetterjobofitthanIevercould.Butconversely,I’mabettersalesmanthanheis.

There’sanothersidebenefittodividingtheinsideandoutsideroles.

Lesson40

NeverBeYourOwnHatchetMan

IkehadNixon;GeorgeW.BushhasRumsfeld;everyballclubhasthemanagerofthemoment.Youhavetogetsomeonewhocanmakethetough,mean,unpopulardecisions—andcantakethefallwhentheygettootough,mean,andunpopular.Youarethepeerlessleader.Youcouldn’treallyknowwhatameanieoldFrogfaceisoryouwouldn’tlethimtreatpeoplethatway.Ofcourseyouknow.That’swhyyouhiredhim.Ifyou’reoutthereonashoeshineandasmile,servingoncommunityboards,makingnewbusinesspresentations,beingquotedinthepaperonthefutureofthewidgetindustry,youdon’twanttobeknownaroundtownastheguywholaysoffemployeesatChristmas,dislikeslaborunions,andshortensthecoffeebreaks.Yourpublicperformancewon’tflyifyou’retheonewhohastocrackthewhipathome.

Howdoyourunabusiness?Youunderstandthestrengthsandweaknessesofthepeopleyou’redealingwithandexploitthem—inthebestsenseoftheword—tobuildstrongpersonalloyaltiesandtomakesureeveryoneplayshisorherproperrole.EventhoughthatsoundslikeabadB-schooltext,doesn’titmakealittlemoresense?

Lesson41

OntheOtherHand,IfYouAreGoingtoBeYourOwnHatchetMan…

Beadamngoodhatchetman.

Somemanagerswerejustmadetoplaytheheavy.ClassicslavedriverslikeHaroldGeneen,LyndonJohnson,GeneralGeorgePatton,andVinceLombardi(“Hetreatedusallalike,likedogs”)aretoolarger-than-lifetobeprettiedupbypublicrelations.

Nolargeorganization—especiallyonewithastrongdesiretobeawinner—surviveswithoutalittlebitofAttilaatthetop.Oftenit’stheCOOorthedirectorofoperations.Occasionallyit’stheCEOhimself.Whenthathappens,theCEOinevitablypaysaprice—withthecommunityandthepress,withhisemployees—but,mostofall,withhiscounterpartsinothercompanies.

Ifyouaredeterminedtobeatoughguy,wisdomsaysyoubetterbringthesestrengthstothefore:

exceptionalintelligencewiththeabilitytoasktoughquestionsfrom9:00A.M.untilquittingtime,wheneverthatisfair-mindedness(youmightcallittheabilitytohitwitheitheraleftjaborarightcross)maintenanceofextremelyhighperformancestandardsfor

yourselfcommitmenttokeepyourguardupcontinually(andcynically)theabilitytoshedcriticismlikeaducksheddingraindrops

Inotherwords,youmusthavethemind-setofadrillsergeant.Yourtroopsaren’tgoingtoloveyou,butthey’llrespectyou—aslongasyoucanprovetothemyou’retougherthantheyareandyou’rewillingtodriveyourselfevenharderthanyou’redrivingthem.Establishingthiskindofstyleislikeplayingcorporate“KingoftheMountain.”Everybodycompeteswitheveryoneelseintheplaceforturforgetsthrownoffthepile.

Theemotionalinvestmentforthiskindof“persona”isenormous,andnotmuchisleftoverforalltheotherthingsaCEOmustbeinthe2000stowintrustandinitiatechange.It’snotmyfirstrecommendation,butifit’syou—gotoit.

Lesson42

LittleThingsDon’tMeanaLot;TheyMeanEverything

VinceLombardisaid,“Victorydoesn’tmeanalot.Itmeanseverything.”Whatvictoryconsistsofiseverything.Doingeverythingright.Thepointis,asuccessfulbusinessislikeasuccessfulfootballteam:Youdon’thavetobewinners;justmakefewermistakesthanyouropponents.

Ifyourunabusiness,thereare1,001waystoscrewupeveryday,andalmostallofthemcanbeavoidedwithalittlemoreattentiontodetailorcommoncourtesy.Acustomercallsandgetsputonholdfortoolongorgetsshuffledaroundtothreeorfourdifferentpeople.Good-bye,customer.Theordergotlostorislateoristhewrongcolor…orwhatever.Hello,Chapter11.Idon’thavetotellyouwhatcangowrong.Everythingcangowrong.Ifyou’reincharge,yourjobistominimizethemistakes.

Youcan’tbeeverywhereatonce.

Youcan’tgetawaywith,“It’sonthetruck”or“It’sinthemail”forverylong.

Youknowbetterthantotrytosolveyourproblemsbymerelysendingoutanothermemo.

Yetyoustillhavetotrytoimpressallofyourpeoplewiththeimportanceofpayingattentiontodetails.

Howdoyouaccomplishthis?

Thestrategyisleadership.

Nobodyisgoingtobelieveit’simportantunlessyou,theboss,makeitseemimportant.Thetacticyouuseisbyexample.

HereareacoupleofwaysinwhichI’veseenitdone.

LouHoltzisasticklerfordetails.WhenhewastheheadfootballcoachatNotreDame,IwasabletojoinhimforaroadgameatPurdue.Hisstudentathleteswereinstructedtowearcoatsandtiestothestadiumbecausethey’dbecloselyobservedasrepresentativesoftheUniversityofNotreDame.Theywerewaitingtoboardthebustogotothestadiumforthegame.Andwaiting.CoachHoltzshowedup.Didn’tsayaword.Justwentdownthelineandlookedthemover.Andover.Finallyhewentuptooneoftheplayers,smiled,reachedupandstraightenedtheplayer’stie,andthennoddedtothedriverofthebus.Notuntilthenwasthedoortothebusopenedandtheteampermittedtoloadup.

Hehadn’tsaidanything,butthemessagewasasclearasifhehadtattooeditacrossthecenter’sfanny:Ifyou’regoingtobeawinner,guys,looklikeawinner.Littlethingsmeaneverything.

BudGrant,anothergreatfootballcoachandmotivator,hadanothergimmick.TheveryfirstdrillattheveryfirstpracticesessionofeveryVikingtrainingcampwasthesame:Grantpersonallydemonstratedandtheplayerspracticedhowtolineupproperlyfortheplayingofthenationalanthem.Andtheygotthemessage:Lettheotherteamsstandaroundlikethey’reinabreadline;you’respecial,you’rewinners,soyoulookandactlikewinnerseverysecondyou’repartofthisteam.

Youcanpreachaboutlittlethingsanddisciplineuntilyourtonguehangsout,butitwon’tworkunlessyouyourselffindawaytodramatizeitandmakeitseemimportantenoughsothemessagegetsthrough.

What’sthedifferencebetweentheCEOofCompanyXprowlingthehallsandlookingformessydesksandHoltzstraighteningnecktiesorGrantshowinggrownmenhowtostandupstraight?Afterall,they’realltidyingupwiththesameobjectiveinmind:todemonstrateleadershipandinstillasenseoftheimportanceofdetail.Whatthecoachesunderstandisthatnomatterwhatthelessonis,youcanteachitonlybyinstillingasenseofpride,notshameinthe

lessonis,youcanteachitonlybyinstillingasenseofpride,notshameinthepupil.Pokingintoofficesthatare,presumably,notonpublicdisplay,says,“Youdon’tknowhowtodoyourjob.”Shapinguppublicappearancessays,“Letthewholeworldseeyoulookasgoodasyouare.”

AmasterofdrivinghomealargepointbymakinganissueoverasmalloneisCarlPohlad,whoownstheMinnesotaTwinsbaseballteamandisontheForbes400listofthesuperrich.Pohladmadehisfortuneinbankingandsoft-drinkbottling.In2003,ForbesreportedhissaleofassetstoWellsFargogainedhim$1billion!

DuringaluncheonnegotiationwithPohladinvolvingamajorreal-estateundertaking,theyoungtigerontheoppositesideofthedealwasaskedbythewaiterwhathe’dliketodrink.

“I’llhaveaCoke,”hesaid.

“No,youwon’t,”saidPohlad.“You’llhaveaPepsi.”

Needlesstosay,Pohlad’ssoft-drinkplantsbottledPepsi-Cola.Moreimportant,hismildindignation,thoughseeminglylighthearted,gavehimjustthetinyedgeheneededtoscoreafewextrapointsinthenegotiations.

Anothermultimillionaireinthebeveragebusiness,JayPhillips,passedawayattheageofninety-fourin1992.HeownedthePhillipsliquorinterests,andmadehispointabouttheproperbrandtoserveinaslightlydifferentbutequallydirectfashion.Uponarrivingasaguestinthehomeofabusinessassociate,Phillipswouldeyetheliquorcabinettoseewhatwasbeingserved.SmarthostsalwayssawtoitthatPhillipslabelsweredisplayed.

Youmaynotbethenation’slargestPepsibottleroraJayPhillips,butifyou’vefilledouttheMackay66andknowyourtarget,you’llnotonlyavoidcostlygaffes…you’llalsobeabletousethelittlethingstoscorebig.

Lesson43

HowtoSpotaWinner

VietnamiswarsagoontheAmericanlandscape.Nobodyassociatesitwithwinning.YetitofferedoneofthebestandmostperceptivestoriesaboutwinningI’veeverheard.ItseemsGeneralWilliamWestmorelandwasoncereviewingaplatoonofparatroopersinVietnam.Ashewentdowntheline,heaskedthemaquestion:“Howdoyoulikejumping,son?”“Loveit,sir!”wasthefirstanswer.“Howdoyoulikejumping?”heaskedthenext.“Thegreatestexperienceinmylife,sir!”exclaimedtheparatrooper.“Howdoyoulikejumping?”heaskedthethird.“Ihateit,sir,”hereplied.“Thenwhydoyoudoit?”“BecauseIwanttobearoundguyswholovetojump.”

DennisConnor,themanwhoputtheblockstoAustraliaandwonbacktheAmerica’sCupinfourstraightraces,explainedinafewwordshowhedidit:“Isurroundmyselfwithqualitypeoplethatmakemelookgood.”Winnersalsoknowhowtobouncebackafterahardhit.Connor’screwmanJohnGrantputitthisway:“Dennislikestoknowhehaspeoplewhowillmaketherightmoveswhenthingsgowrong.”Andthat’stherightmanagementinstinctifyou’reatthehelmofatwelve-meteryachtorabillion-dollarbusiness.

Winnerssurroundthemselveswithotherwinners.Awinnerknowshe’sawinner.Hedoesn’tneedsecond-ratersandyes-menaroundtofeedhisego.Heknowshe’llwinmore,andgofarther,withassociateswhonotonlycankeepupwithhimbutwhoalsoarecapableofteachinghimsomething.

Ifyou’reabouttoformanewbusinessconnection,whetherit’sajobora

Ifyou’reabouttoformanewbusinessconnection,whetherit’sajoborajointventure,don’tjustlookatyouroppositenumber.Lookathissubordinates.Doeshetrustthem?Doeshedelegatetothem?Dotheycomplementhistalentsbybeingstrongmanagerswhilehe’sanentrepreneur?Oraretheyjusthisclones?Ifthey’reweak,youhaveaproblem.You’llnotonlyhaveyourhandsfullgettinganythingdoneyourway,you’llalsobecompletelydependentonyournewassociate’spersonalcapabilitiesandenergy.Therewon’tbequalitystaffbackup.Notagoodsituationinwhichtofindyourself.

Lesson44

YourBestPeopleMaySpendTheirMostProductiveTimeStaringattheWall

There’sastorymakingtheroundsthatamanagerwhocouldn’tusehisconcertticketsforSchubert’sUnfinishedSymphonygavethemtohisworkstudymanagementexecutive—innon-jargon,theefficiencyexpert—andreceivedthefollowingreportaftertheperformance:

1. Forconsiderableperiods,thefouroboeplayershadnothingtodo.Theirnumbershouldbereduced,andtheirworkspreadoverthewholeorchestra.

2. Fortyviolinswereplayingidenticalnotes.Thisseemsunnecessaryduplication,andthissectionshouldbedrasticallycut.Ifalargervolumeofsoundisrequired,thiscouldbeachievedthroughanelectronicamplifier.

3. Mucheffortwasabsorbedintheplayingofdemi/semiquavers.Thisseemsanexcessiverefinement,anditisrecommendedthatallnotesberoundedtothenearestsemiquaver.Ifthisweredone,itshouldbepossibletousetraineesandlower-gradeoperators.

4. Nousefulpurposeisservedbyrepeatingwithhornsthepassagethathasalreadybeenhandledbythestrings.Ifallsuchredundantpassageswereeliminated,theconcertcouldbereducedtotwentyminutes.IfSchuberthadattendedtothesematters,heprobablywouldhavebeenabletofinishhissymphonyafterall.

Efficiencyachievedattheexpenseofcreativityiscounterproductive.Don’tequateactivitywithefficiency.Youarepayingyourkeypeopletoseethebigpicture.Don’tletthemgetboggeddowninalotofmeaninglessmeetingsandpapershuffling.AnnounceaFridayafternoonoffonceinawhile.CancelaMondaymorningmeetingortwo.Tellthecastofcharactersyou’dlikethemtospendthesameamountoftimenormallyspentpreparingforandattendingthemeetingattheirdesks,simplythinkingaboutanoriginalidea.Andithastobesomethingthey’venevermentionedbefore.Don’tevenrequirethemtosubmittheresults.Justseewhathappens.

Ifyoudiscoveroneofyourexecutiveslookingatthewall,liketheoboeplayer,insteadoffillingoutareport,gooverandcongratulatehimorher.

Theyareprobablydoingthecompanyalotmoregoodthananythingelsetheycouldbedoing.They’rethinking.It’sthehardest,mostvaluabletaskanypersonperforms.It’swhathelpedgetyouwhereyouare.THINK:that’stheone-wordmottothatThomasJ.WatsonbroughttoIBMdecadesago.THINKhasneverleftIBM,evenduringtoughtimes.AfterLouGerstner’smasterfulturnaroundofthebusiness,it’sprobablyasimportantamandateaswhenThomasJ.Watsonintroducedit.You’llevenfindThinkPadnotepadsintheIBMproductassortment.

THINK!Don’tstifleit.Encourageit.

Lesson45

It’sMoreFunWhenIt’sSpontaneous

No,I’mnottalkingaboutsexagain,thoughthesameprincipleapplies.Haveyouevernoticedacertainlackofenthusiasmforwhatpassesforfunoftheusualcorporatevariety?

Youdon’thavetowaituntilthecalendartellsyouit’stimefortheChristmaspartyortheofficepicnicorsomeotherformofcompulsoryfun.

Whenyousensethatthepressurehasreallyrisenandstayedontoolong,whenyoucanfeeltheconcentrationlevelgoingdown—that’sthetimetohavethepartyortocomeupwithticketstotheballgameortheconcert.You’llbepleasantlysurprisedattheresultsthenextmorningafterthatfreebiefromtheboss.Younoticedwhatwashappening:Youcared—andyoudidsomethingaboutit.

Lesson46

HaveYouEverSeenaStand-UpStrike?

Iknowthatalotofpeoplearetiredofhearingabout“howtheydoitinJapan.”ButIhadanexperiencetherejustacoupleofyearsagothatyoudeservetohearabout.Itillustratestomehowemployeescancare.Italsosaysthatmanagersmusttakeemployeesseriouslywhenemployeesexpresstheirviewsandfeelings.

IwasinvitedtovisittheKomatsuCorporationfactoryinOsaka.Thecompanyisoneoftheworld’slargestandmostefficientmanufacturersofheavyequipment.Salesatthetimeofmyvisitwere$9.5billionannually.

Justbeforetheplanttourwasscheduledtostart,Igotacallinmyhotelroom.Someoftheworkerswereonstrike.DidIstillwanttoseetheplant?Sure.Whynot?Wetakethetour.Wepassagroupofworkerswearingblackarmbands,movingarounddoingtheirjobs.“Whodied?”Iasked.“Noone,”theytoldme.“Thesearethepeoplewhoareonstrike.Theystrikebywearingblackarmbands,thetraditionalWesternsymbolofbereavement,whiletheycontinueworking.They’resadthatthingshavecometosuchasorrystateofaffairsthattheyareindisagreementwithmanagement,butsuchthingsdosometimeshappen.Sotheyareonstrike—bywearingblackarmbands.”

Buttheplantkeepsoperating.Noproductionislost.Theworkerskeeponearningwages.Theykeeptalkingwithmanagementabouttheproblems.Andtheykeeponworking!

And,bytheway,theykeeponslammingusintothepavementwiththe

And,bytheway,theykeeponslammingusintothepavementwiththequality,efficiency,andvalueoftheproductstheyareproducingindirectcompetitionwithus.

Thelessonhereisaboutcreativity,notjustproductivity.TheJapanesehavefoundawayfortheplanttostayoperationalandfortheworkersbothtokeepdrawingapaycheckandtokeeptheirgrievancealiveandvisibletotheirmanagerseveryminuteoftheworkday.

Thepayoffwasthatthetermsofsettlementofthegrievanceprobablyweren’tmuchdifferentfromwhattheywouldhavebeenhadtheworkersshutdowntheplace.Alltheymissedwasthechancetoshoutinsultsateachotheracrossthebargainingtableforafewmonths.

Lesson47

ItIsn’tPracticeThatMakesPerfect;YouHavetoAddOneWord:It’sPerfectPracticeThatMakesPerfect

Lombardiagain,butletmetrytoputanewwrinkleonit.Youcanpracticealldaylong,butifyoudon’treallyknowwhatyou’redoing,nomatterhowmuchtalentyouhave,you’reonlyperfectinganerror.

Lookatthegreatathletesandmusicians.Therearenowalk-onsattheSuperBowlorCarnegieHall…orincorporateboardrooms,forthatmatter.Thelevelofperformanceinthoseexaltedplacesisonlypartiallyareflectionoftalent.Therearetwootherqualitiesthatareindispensableinmakingittothetop:expertcoachingandirondetermination.Let’sstartwithcoaching.Onlywe’llcallitteaching.

You’rereadingthisbookforareason:inthehopethatburiedsomewhereinthesepagesareatleastoneortwoideasyou’llbeabletousetomakeabuck.Fortheshorttimeyou,thereader,andI,thewriter,havetospendtogether,I’myourcoach.Webothknowthatnobookisgoingtochangeyourlife.Onlyyoucanactuallychangeyourlife.Ican’tdoitforyou.Noteachercan.

Ateacherisnottherejusttoacquaintyouwiththetoolsofyourtrade;ateacherisatoolofyourtrade,nomatterwhatthattradeis.Youneverstopneedingteachers.Thegreatmusiciansneverstoptakinglessons,neverstoptryingtoimprove.ArturRubinsteinusedtosaythatifhemissedadayofpractice,henoticeditinthequalityofhisperformance.Ifhemissedtwodays,

thecriticsnoticed.Andifhemissedthreedays,theaudiencenoticed.

Whateveritisyoudo,youcanbebetteratitifyoujustkeeponlearning.Icertainlyhavenotmasteredtheartofmakingenvelopes,sellingenvelopes,ordevelopingnewenvelopes.

TheminuteIpersuademyselfthatIhave,thatIhavelearnedallthereistolearnaboutthesubjectandcanrelax,that’sthemomentmycompetitionwillfindawaytodoanyoralloftheabovebetterthanIcanandwillhandmemyhead.Theannalsofbusinessarefilledwithstoriesofcompaniesthatthoughttheyhaditmadeandcouldmilktheirenterprisesascashcowswithouthavingtobotheraboutimprovingtheirproductsorservice.It’samazinghowfasttheyfoundtheirmarketsdisappearing.

HowardJohnson’s,todayknownasahotelchain,isaclassicexample.IgrewupinanerawhenHowardJohnson’shadthefast-foodbusinessprettymuchtothemselves.Butinsteadofplowingenoughoftheirprofitsbackintoresearch…developingnewmarkets…anticipatingtrendsinconsumerattitudes…HowardJohnson’sstoppedlearningandlaidbackthinkingtheyhaditmade.Theyfoundoutthattheydidn’t.

Youcanapplythatlessontoyourownbusiness.Hirepeoplewhoarestilllearning,peoplewhofeelthatlearningisalifelongprocess,eitherintheclassroom,theoffice,orathome.Encourageyouremployeestolearnbypayingtheirtuitionforthem.DevelopabusinesslibraryandstockitwithwrittenmaterialsandCDsandDVDs.Showthemyouwantthemtogrow—andyourbusinesswillgrow,too.

Lesson48

TrusttheExperts…toBeWrong

Therearetwotypesofexperts,andit’sveryimportanttobeabletodistinguishbetweenthem:Thereistheexpertwhocanmakesomethinghappen,andthereistheexpertwhocantellyouwhatheorshethinksisgoingtohappen.Getalltheadviceyoucanaffordfromtheexpertsincategoryone,butbevery,verycautiousaboutthecategory-twotypes.

Letmegiveyouanexample:Oneofmybestfriendswasthepresidentofaverydistinguishedregionalbrokeragehouse,andassuchhadmorethanarootinginterestintheeconomicoutlook.Thefirmpaidasizableretainertoaprominenteconomistwhoprovidedthemeachmonthwithshort-andlong-rangeeconomicforecasts.Itwasbeautifullywritten,filledwithcleverquotesandcloselyreasonedarguments…andalwayswrong.Nothingunusualthere,asithasbeensaidofeconomiststhattheyaretheonlyprofessionalswhocanmakeanexcellentlivingwithouteverbeingrightintheirentirecareers.

Myfriendknewallthis,ofcourse,buthewasafraidtocancelthearrangementbecauseoffearhemightsomedaymissamajorturnintheeconomy.Hehedgedhisbets,though.Whenhehadtomakeareallyseriousdecision—amajorunderwriting,forexample—healsousedtheeconomicforecastfeatureinFortunemagazine—whichheboughtatthenewsstandeveryotherweek—andgotbetterresults.

Whetherit’seconomists,themostprestigiousoftheprofessionalpundits,or

stock-marketforecasters,orpoliticalanalysts,orjustplainoldsportshandicappersandracetracktouts,myadviceisthesame:Beextremelyleery.Relyonthesepeopletotellyouwhysomethinghappened,butdon’trelyonthemtotellyouwhysomethingisgoingtohappen.Theydon’tknowanymorethanyoudo—andneitherdotheircomputers.Whenitcomestoforecastingeventswithalargenumberofhighlyvolatilevariables,anyoneofwhichcoulddeterminetheoutcome,expertsarelessthanexpert.Trustyourselfandyourgut,andyou’relikelytodoatleastaswell.

Lesson49

ItIsn’tthePeopleYouFireWhoMakeYourLifeMiserable,It’sthePeopleYouDon’t

WhenIusethislineinspeeches,Igetmore“Amens”thanaBillyGrahamsermon.

Youcan’tputalittleplaquewiththosewordsonyourdesk,butifyouareamanager,youwouldbewelladvisedtoengravethemonyourpsyche.

Lesson50

TheBestWaytoChewSomeoneOut

Thereisn’tany.Butyoudohavetodoit,soyoumayhavetomasteratechniquethatbothsuitsyourstyleandtheoccasion.TheKenBlanchardone-minute-in-hellmethodishardforme.IfI’mreallyonatear,I’mnotreadytostopafteraminute.AndIdon’t.

Nothingworksallthetime,butthere’sonemethodI’vesavedforthebiggies.Isitinmybig,comfortableoffice.Ireachoutfortheculpritthroughmyassistant,whogiveshima“littletip…I’veneverseenMr.Mackaysoangry.”Imakehimstewintheanteroomforuptohalfanhour.Okay;sofar,nothingyouhaven’tdoneafewtimesyourself.Thepurposeofthepreliminariesisobviouslytomakehimfocusonhismistakeandbepainfullyawareofthedepthofmywrath.

Heissummonedin.Hestandsinfrontofmydesk.Ispeak.“Jack,”Isay,risingup,scowling,andpointingtomychair,“pleasegooverandsitinthatchair.”Hesitsinmychair.Isitinwhatwouldnormallybehischair.“Allright,Jack,nowwhatwouldyousayifyouwereme?”

Oh,howtheyhatethatchair.Ionceoverheardaconversationwheretheyweretalkingaboutmeandonefellowsaidtoanother,“Didhegiveyouthechair?”You’dthinkitwasSingSing!It’sunfamiliarterritory,sothatgeneratesdiscomfortautomatically.Second,becauseofwhatiscomingdown,theyknowtheydon’tbelonginthepositionofauthorityrepresentedbytheboss’schair,and

thatmakesforanaddedburdenofguilt.Believeme,fouroutoffivetimestheywereharderonthemselvesthanIeverwouldhavebeen…though,ofcourse,noonehaseverfiredhimself.BecauseIdon’tdothechewingoutmyself,nonever-to-be-forgotten-always-to-be-resentedphrasesarelodgedforeverintheirmemories.Theydoallthedirtywork.

Butit’snotsurefire.OnefellowoutoffiveItrieditonwasveryflipaboutit.SoIhadtowaituntilthenexttime…andIdidnotgiveupmychairwhenIfiredhim.

Lesson51

NeverLetAnyone,ParticularlyaSuperstar,PickHisorHerOwnSuccessor

EverymanagershouldinsertasmalladditiontohisprayerseachnightinwhichheinvokestheaidofaHigherPowerinensuringthathispredecessorisalwaysanincompetent.Infact,there’snobettersituationforamanagertoinheritthanfollowinganincompetent.Obviouslythere’snowheretogobutup.Amoresubtlevariationonthethemeoccurswhenasuperstarisabouttoleave.Sincehedidsuchaspectacularjob,itseemslogicaltoaskhimtosharejustonelastbitofhissuperiorwisdom:Mr.Superstar,whoshouldbeyoursuccessor?Whoeverherecommends,smilesweetly,andcrossthatnameoffyourlist.

It’sjustbubblegumpsychoanalysis,butIbelievethat,consciouslyorunconsciously,noonereallywantshisorhersuccessortosucceed.Theyrecommendcandidateslikelytofail,therebymakingtheirownachievementsallthemoreremarkable.

Backinthe1970s,BillFitch,whowentontocoachintheNBA,wasagiantsuccessinrestoringUniversityofMinnesotabasketballtonationalprominence.Afterbuildinguptheprogram,hedecidedtogoontogreenerpastures.Theassistantcoach,withFitch’sstrongrecommendation,gotthejob…andwasgoneinayear.Theotherleadingcandidateforthejob—thefellowwhogotturneddown—woundupatIndiana.TherethatcoachwonseveralNCAAtitles.HealsocoachedtheU.S.teamtoanOlympicGoldMedalin1984.Today,BobKnightiscoachofTexasTechUniversity.Whilethecenterofcontroversyforhis

sometimesvolatilebehavior,Knight’ssuccessforpostingwinsonthehardwoodcourtisindisputable.

ThesamethinghappenedacoupleofyearsagowhenBudGrant,headcoachoftheMinnesotaVikings,retiredthefirsttimeandpersuadedtheVikings’managementtohireassistantcoachLesSteckel.Steckelwastotallywrongforthejoband,aftertheVikingssuffereda3–13season,Grantwasbackagain,hailedasthesaviorofthefranchise.

Theweakpredecessor/strongleader/weaksuccessorsyndromeisn’tconfinedtosports.AndrewJackson’shandpickedsuccessoraspresidentoftheUnitedStates,MartinVanBuren,wasadud.OneofthepersistentmythsofAmericanhistoryisthatadyingFranklinD.Rooseveltpassedoverex–SecretaryofState,ex–U.S.SupremeCourtJusticeJimmyByrnesforvicepresidentin1944becausehesawthehiddenqualityofgreatnessinHarrySTruman.RooseveltpickedTrumanpreciselybecauseheseemedtobesuchaperfecthack.Rooseveltwouldhavebeenastonished,andnodoubtdismayed,ifhehadknownhowwellhissuccessorperformed.

Anyonewhothinksheorsheisindispensableshouldstickafingerintoabowlofwaterandnoticetheholeitleaveswhenit’spulledout.

Lesson52

GiveMoreConventionsandYouCanGiveFewerRaises

Allsuccessfulsalesorganizationsofferaconstantroundofmorale-boostermeetings,incentives,awards,andrecognition.Nomatterhowoftensalespeoplearetold“Itisn’tpersonal”whenthey’returneddown,professionalsalesmanagersrealizehowpsychologicallydrainingthoserejectionsare.It’sanever-endingstruggletokeeptheirpeopleupandmotivated.Whatappliestosalespeoplealsoappliestotherestoftheworkforce.Everyoneneedstofeelappreciated.

Mostbusinessesaren’tveryglamorous.Envelopesmayturnmeon,buttomostpeopleintheendlesslyexcitingenvelopegame,it’sjustajob.Ifyouwanttogooseupthemoralealittlebitamongyourmiddlemanagers,givethemsomeunexpectedrecognition.Formostpeople,braggingrightsarejustasimportantasmoney.

Sendafewkeypeopletoaconventionoraseminarortwo.Giveitthefulltreatment.Calltheminunexpectedly,tellthemthecompanyhasn’thadthatgreatayearbutyouwanttorecognizetheirsuperiorperformancebysendingthemtosuch-and-suchaschool/seminar/convention.Ifyou’rereadytogivethepersonevenmoreofaboost,throwinaticketforthewifeorhusband.They’retoreportbackonwhatthey’velearned,ofcourse,butmakeitclearyoureallyselectedthembecausetheyarejustthesortofpersonyouwantrepresentingthecompany,andyouwanttorewardthemforit.Thensendoutamemoannouncingexactlywhatyoujusttoldthem,orputitinthehouseorgan.

You’veaccomplishedseveralthings:You’vetoldyourpeopleyounoticeandappreciategoodwork,andyou’vecreatedaperformanceincentivewithoutlockingyourselfintoacostlyandever-escalatingprogram.That,ofcourse,isallinadditiontoyourexistingrecognitionandawardsprogram.

Lesson53

HowManySalespeopleDoYouHave?

Whenpeopleaskmethat,Itellthemwehave550.“Wow!”theyanswer.“Howmanyemployeesdoyouhave?”“Fivehundredfifty,”Isay.

AsImentionedbefore,wemanufactureacommon,ordinarykindofproductthat’sbeenaroundinsimilarformforhundredsofyears.Nobodystopsmeonthestreetandsays,“Gee,whatagreatenvelopeyouguysmake.”Thetruthis,inourindustryeverybodymakesprettymuchthesameproductlineandthepricingisverycompetitive.

Oursuccessdependsonmarketing.There’snomagicformulaformakingeveryemployeeawareoftheimportanceofmarketingtoourcompany.It’sadailygrind.Ourstrategyistocreateawarenessamongourpeople.Weusedeviceslikeonewestartedyearsago.Theparkingspaceclosesttothedoorofourmainofficehasasign:“Reservedfor[youfillinthename]SalespersonoftheMonth.”Thekeytothatparking-slotgimmickisn’tjustrecognitionforanindividual.It’salsothattheparkingspaceisclosertothedoorthanmyparkingspaceoranyoneelse’s.It’saveryspecificwayofsayingthatsalesarethekeytoourbusiness.

TherearetwoverysimplesignsIwanttotellyouabout.Youwon’tfindthematthenoveltyshoporthecutesysignstore,becauseImadethemupmyself.Onehangsonthedoortomyoffice.Whenthedoorisclosed,youcomeeyeball-to-eyeballwithit.Itsays,“Ifyouknowwhereyoucangetussomebusiness,comein.”Thesecondsignisonthelittleroundtableintheconference

business,comein.”Thesecondsignisonthelittleroundtableintheconferenceareaofmyoffice.Itsays,“Ourmeetingwillnotbeinterrupted…unlessacustomercalls.”

Lesson54

GetBoredEasily

Professionalmanagerscanrepeatthesametaskoverandover,butmostsuccessfulentrepreneurscan’thandleboredom.Thedifferenceinthesetwofamiliartypesrunssodeeplythat,ifyou’reamanager,it’sunlikelyyou’llsucceedintheroleofentrepreneur,justasentrepreneurstendnottomakeverygoodmanagers.There’saplaceintheworldforeach.Themessagehereistoentrepreneurs.

McKinsey&CompanydidastudyofthemembersoftheAmericanBusinessConference,whichgrew20percentperyearoverthefive-yearperiodpriortothepublicationofthereport.Thereisonecommonthreadrunningthroughtheseoperations:Thepeoplewhorunthemtendtobeentrepreneurswhojustcan’tstandcorporatebureaucracy,organizationcharts,andmanualsforoperatingprocedures.

Entrepreneursshareacommontraitwithgoodsalespeople:Bothareabletocommunicateasenseofself-confidenceandimportanceabouttheirmissionthatiscontagioustoallaroundthem.

Entrepreneursscratchbeforetheyitch.Theydaretofixthingsbeforetheybreakbecauseitispartoftheirmakeuptoseekoutfreshchallenges.

Theydeterminetheagenda;theysetthepace;theydominatethefieldofplay.Pitanentrepreneuragainstamanager,andtheentrepreneurisconstantlyforcingthemanagertoabandonhisownplansandreacttotheentrepreneur’s

forcingthemanagertoabandonhisownplansandreacttotheentrepreneur’sinitiative.

Ifyou’reanentrepreneur,youknowit.Andifyouare,yourcompetitorshavereasontodreaditwhenyoufeeltheonsetofrestlessness.Itmeansyou’rereadytomakeanothermove.Don’tfightit—it’stheentrepreneur’sgreateststrength.Atthesametime,recognizeyourgreatestweakness:aneyefordetail,whichalltoooftentranslatesintoaninabilitytomanagethefinancialendofthebusiness.

Ifyou’reanentrepreneur,befrankenoughaboutyourownlimitationstogetyourselfaGeorgeWilsontohandletheday-to-dayoperations.Thirty-fiveyearsago,whenWilsonwasstewingoverwhethertotakeonthecommitmentofmovingtheBillyGrahamofficestoanewerbuilding,hecalledGrahamandaskedhisadvice.“Idon’tcallyouandaskyouwhatIshouldpreach,”saidBilly.“Don’tcallmeaboutwhatyoushoulddowithbuildings.”

Lesson55

AskanOldGrizzly

Theabilitytolistentoothersisnot,typically,theentrepreneur’sgreateststrength.

Ifyou’retheoldestguyintheshop,ifyou’retheoneothersturntowhentheywanttohearaboutthe“olddays,”it’stimetofindyourselfanevenoldergrizzly.

WhenIfirstboughtMackayEnvelope,Iwastwenty-six.Mylawyer,theoneIhiredafterIfiredtheyounghotshotwhotoldmenottobuytheenvelopecompany,wassixty.Myaccountantwasfifty-eight,andmybankerwouldadmittobeingseventy,butIthinkhewasclosertoeighty.Theydidn’tknowathingabouttheenvelopebusiness,buttheydidn’tneedto.Theyhadseenenoughbusinessproblemsintheirlifetimestobeabletodealwithanythingimaginablewithoutknowingtheinsandoutsofmyparticularindustry.

Thougheverythingthathappenedtomeinmyfirstfiveyearsofbusinesswasnewtome,nothingwasnewtothem.AndevenwhenIdidn’ttaketheiradvice—andoftenIdidn’t—theywereacalmingandreassuringinfluence.Andthat’ssomethingeverybusinessperson,noviceorexperienced,hasneedoffromtimetotime.

I’mabitpasttwenty-sixnowandgettingclosertoold-timerstatusmyself,butifIlearnedanythingfromthoseold-timers,itwasthatIdidn’thavetoshoulderthewholeloadalone.Therearealotofqualifiedadvisersoutthereto

shoulderthewholeloadalone.Therearealotofqualifiedadvisersouttheretohelp…ifweonlyaskthem.Tryitsometime.Thinkingofaddinganewproductline?Consideringrelocatingyourplant?Afraidtotakeastrike,butfeelinyourgutyoushould?Makinganacquisition?You’renotthefirstpersonwho’shadtowrestlewiththoseproblems.Askanoldgrizzly.Youmayhavetolistenmorethanyoutalk,butthatwon’thurtyoueither.

Lesson56

KnowingWhenNottoWorkHardIsasImportantasKnowingWhenTo

“I’magreatbelieverinluck,”saidStephenLeacock,theCanadianhumorist,“andtheharderIwork,theluckierIget.”

ThefounderofHolidayInns,KemmonsWilson,nevergothishigh-schooldiploma,buttheyaskedhimbackanywaytogivethecommencementaddresstoagraduatingclassattheschoolheattended.Hesaid,“Ireallydon’tknowwhyI’mhere.Inevergotadegree,andI’veonlyworkedhalfdaysmyentirelife.Iguessmyadvicetoyouistodothesame.Workhalfdayseveryday.Anditdoesn’tmatterwhichhalf…thefirsttwelvehoursorthesecondtwelvehours.”

ThelateCurtCarlsonwasfounderofthemultibillion-dollarCarlsonCompanies.ThattodayincludestheRadissonHotelsofCarlsonHospitalityWorldwideandtherestaurantsofT.G.I.Friday’s,whichoperateinfifty-fivecountries.Italsoincludesanempireofcorporateandleisuretravelaswellasmarketingservices.Curtwasadearfriendandcherishedmentorofmine.Hestartedsellingpremiumstampsoutofthetrunkofhiscarandendedupwithoneofthenation’sgreatfortunes.ThelastestimateofCurt’spersonalworththatForbesmagazinemadebeforehisdeathin1999was$1.6billion.Curthadaverysimplephilosophyaboutwork.Hesaidthefirstfivedaysoftheweek,MondaythroughFriday,arewhenyouworktokeepupwiththecompetition.It’sonSaturdaysandSundaysthatyougetaheadofthem.

Toalotofpeople,Carlsonwasaworkaholic.Ofcourse,hedidn’tthinkso;tohim,workwasn’twork.Obviously,hedidn’tworkformoneyonly.Asyoumightimagine,Curtwasaprettybrightguyandundoubtedlyrealizedthatanyonewith$10millioncanbejustashappyassomeonewith$1.6billion.ForCurt,making,nothaving,theextra$1.590billionwasfun.Playinggolfwaswork.(Guesswhathewasbetterat.)

ButyouandIdon’thavetobeworkaholicstobewildlysuccessful.

KenBlanchard,thecoauthorofTheOneMinuteManager,hasitright.It’sthe“peakperformers”whodothebestjobofhandlingtheload.Theycanturnontremendousburstsofspeedforaweek,twoweeks,threeweeks,whenit’sneededforsomeparticularlyimportanttask,andthenbeunashamedlylazyinbetweenwhenthenatureoftheworkisroutine.

Peakperformerscandistinguishbetweengoal-orientedperformance,reallyproductivework,andmerewheel-spinning.Theyareastuteinavoidingthelatter.Classicentrepreneurialboredomsetsin…andthentheygetthehelloutofthewayforawhile.

So,yes,youhavetobeabletoworkvery,veryhard,butno,youdon’thavetoapproacheveryassignmentintypical“TypeA”full-speed-aheadfashion.Knowingwhentothrottledowncancontributeasmuchtoyourperformance,andyourlife-span,asknowingwhentothrottleup.

CurtCarlsonandKemmonsWilsonwereaspecialbreed;theyneverstoppedworking.Butmostofuswouldprobablyimproveourownperformanceifwedidtakeoffmoreoften.

Idon’ttakemanyrealvacations,andIalsogetawayfromitallbybeinginvolvedinactivitiesaroundtownthatgetmeoutoftheofficeroutine—oratleastItellmyselfI’mgettingawayfromitall.Butthen,I’mthekindwhocouldbejustashappywiththe$10millionasCurtwaswithhis$1.6billion.

Lesson57

Owning1PercentofSomethingIsWorthMorethanManaging100PercentofAnything

Ihaveaconfessiontomake:IfIhadwrittenthisbooktwenty-fiveyearsago,theheadingherewouldhavesuggestedtheexactopposite,somethinglikeTAKEINLAUNDRYBEFOREYOUTAKEINPARTNERS.

Ifthere’sanycharacteristicthatdistinguishestheentrepreneurialtype,itisahalf-madfanaticismaboutgoingitalone,withoutanyonepokinganoseintohisbusiness,askingquestions,ortellinghimwhattodo.Nothingistougherforanentrepreneurthanlettinggooftotalcontrol.

Well,theworldhaschanged.Everybusiness,evenaselementaryahumanpursuitasmakingenvelopes,aproductthatisessentiallynodifferentfromwhatitwas150yearsago,isbecomingmorecomplexbecauseoftheintroductionofsophisticatedmachinery,marketing,andfinancingtechniques.

Theseat-of-the-pantsentrepreneur,nomatterhowtalentedorintuitive,needsprofessionalskillshecanneverhopetomasterhimself.Hewillhavetobuythoseskillsinamarketplacewherethesellershavealsobecomemuchmoresophisticatedaboutthevalueoftheirabilitiesandhowtochargeforthem.

Timeforanothercautionarytale.

Anentrepreneurfriendofmineholdscontrollinginterestinaprofessionalsportsfranchise.Ithasbeenverysuccessful,inlargepartbecausethe

sportsfranchise.Ithasbeenverysuccessful,inlargepartbecausetheentrepreneurhadthevisiontoseethattelevisionwasupgradinghismarketfromasmall,localaudiencetoavast,nationwideone.Andalsobecausehewassmartenoughtohirethebestnuts-and-boltsmaninthebusinesstorunthefranchise.

Oneday,thenuts-and-boltsmancameupstairsandaskedforapieceoftheaction.Notaparticularlylargepiece.Infact,even1percentwouldhavebeenadequatetosatisfyhishungerforsecurityandprestige,theneedtofeelhewasanownerandnotamerehiredhand.

Buttheentrepreneur,themanwithSpaceAgemarketingvision,alsohadStoneAgelaborrelationsattitudes.Herefused.Themanagerleft.

Ourentrepreneurdidn’trealizethatanybusinessrelationshipinwhichonepartyhasanobviousedgeovertheotherwon’tbetotheadvantageofeitherbecauseitwon’tlast.Althoughthefranchisehasn’texactlyfallenonhardtimes—it’snexttoimpossibletolosemoneyinthatgame—theentrepreneurhasclearlylosthistouch.

Thenextmanagerhehiredturnedouttobeevenmoredemandingandashrewdercorporatepolitician.Nowtheentrepreneuristryingtokeepfrombeingthrownoutofhisownbusinessentirely.

Iwonderifheeverthinksbackaboutthatmeetingofyearsago,when,ifhehadonlybeenwillingtogiveupjust1percentofhisfranchise,heneverwouldhavefacedtheprospectoflosingitall.

Thesedays,ifyouexpecttokeepyourbusiness,you’llneedprofessionalskillstorunit,andthepeoplewhohavethoseskillsarelikelytobejustasawareoftheirvalueasyouare.

Theyexpectapieceoftheaction.You’regoingtohavetogiveittothemorrisklosingthem,andpossiblysomethingmuchmoreimportant.

Lesson58

DigYourWellBeforeYou’reThirsty

ScottMitchellisbothavisionarymanagerandasavvyrisk-taker.WhenIsawhoweffectivelyScottwasrunningMackayEnvelope,Ididn’twaitforhimtocrossthehallandask.Iofferedhimastakeinthebusiness,andonethatwasconsiderablylargerthan1percent.Sincethen,severalofmymajorcompetitorshavetakenarunathim,buthe’snotleaving.He’sanownernow.

ShouldIhavewaiteduntilIhadtomaketheoffer?

Notunlessyouthinkit’ssmartertobuywheneveryoneelseisbiddingthanwhenyouseevaluelongbeforeit’srecognizedinthemarketplace.

Lesson59

TreatYourOwnPeopletheWayYouTreatYourCustomers

Thesalesperson’sclassictacticofknowingasmuchaspossibleaboutthecustomerbeginswithlearningnamesandprogressestousingtoolsliketheMackay66.Nowlet’sseehowtheentrepreneurcanexpandthatconcept.Again,I’llillustratewithastory.

Apoliticianistheultimateentrepreneur.Heisoutthereallbyhimself,withnocorporateidentitytohidebehind.Politics,atleastinthepre-Watergateera,wasthelastofthefreebooting,swashbuckling,no-holds-barred,nineteenth-centurybusinesses,wherecompetitorssluggeditouttoe-to-toe,winner-take-all.

Aprofessionalpoliticianissomeonewhohasmasteredboththetoolsofpersuasionandtherough-and-tumbletricksofthemarketplace.Anyonewhomakesittothetopinpoliticscanusuallymakeitanywhere.

ImetHubertHumphreyforthefirsttimewhenIwasfreshoutofcollege.I’dhitthebooksprettyhardforfouryears,butIspentalotoftimehittinggolfballs,too,andgottobeaprettyfaircollegiateplayer.Itriedtopersuademyfatherthatdestinybeckonedmetotheprocircuit.

Myfathercounteredbysettingupaseriesofmeetingsformewithvariousbigshotsheknew.Ithinktheideawasthattheyweretotalkmeoutoftakingupgolfandtrytoconvincemetodosomethingconstructive.ThereasonhethoughtitwouldworkwasthatIwasalwayskindofahero-worshiper,andthesepeoplewereallwellknown,thekindthatmydadwroteabouteverydayinthepapers.

wereallwellknown,thekindthatmydadwroteabouteverydayinthepapers.

Humphreywasfirstonthelist.Iwentintohisoffice,heboundedoutofhischairHumphrey-styletogreetme,andsaid,“Ihearyou’reagreatgolfer,Harvey.Ienvyyou.IwishIhadthattalent.Justkeepatit,andmaybesomeday”—hejerkedhisheadoverinthedirectionoftheWhiteHouse,whereIkethegolferwaspracticingputtsontherugintheOvalOffice—“you’llgettobepresident,too.”Iwasamazed.Insteadofboring,well-meaningadvice,whichiswhatIeventuallygotfromeveryoneelseonthelist,whatIgotfromHumphreywasthehandoffriendshipnomatterwhatIdecided.

HumphreyknewIwasn’tgoingtolistentoawordhesaidaboutwhatIshoulddowithmylife.I’dmakeupmyownmindaboutthat.Ratherthanviewingmeasachoretobedisposedofassoonaspossible,oranobjectofhisoratory,HumphreysawmeforwhatIreallywas:acustomer,asoon-to-be-voter.Heusedthefewminuteswehadtogethertoachievehisobjectives.Hemademehisfriend,and,ofcourse,Ibecameasupporterandcontributortohiscampaigns.

Asentrepreneurs,weliketothinkofourselvesasfarsighted,butwe’reseldomasfarsightedasaHumphrey.Insteadofthinkingofouremployeesascustomerstobewonovertoachieveourlong-termobjectives,wethinkofthemasautomatons,piecesofmachinerywhoaresummonedtocarryoutourshort-termobjectives.Itdoesn’tworkthatway.TakethetroubletodowhatHumphreydid.Doyourhomework.Findoutenoughaboutthepeopleyou’reworkingwithsoyoucanshowsomegenuinepersonalconcernaboutthem.Expressthatconcernandmakethemyourfriends.Oneatatime.Yourlong-termsuccessdependsontheirperformance.Toagreaterextentthanyoumayrealize,they’reperformingforyou,foryourapproval,notjustforyourpaycheck.Ifyoucanmakethembelievethatyourapprovalmeanssomething,bytakingapersonalinterestinthemyouwillhavetakenamajorsteptowardsecuringyourownlong-termsuccess.

Successfulpoliticiansrealizetheygetmostoftheirvotesretail,oneatatime,fromconstituentserviceandpersonalcontact,notwholesale,fromtheirpositionsontheissues.Inotherwords,avoterwilloftensupportsomeonehedisagreeswith,butneversomeonehedislikes.Itworksthesamewayinbusiness.

Alittle-knownjournalistfriendofmineonceinterviewedJenoPaulucci,theentrepreneurwhobuiltupandthensoldtwomajorfoodbusinessesforareported$100million.Theinterviewtookplaceinthedeadofwinterinafancy

reported$100million.TheinterviewtookplaceinthedeadofwinterinafancyhotelsuitewithPauluccisurroundedbyaides.Whentheyfinished,Pauluccigotup,wentovertothecloset,gotoutthewriter’scoat,andtheneveryonestoodaroundwhilethefive-foot,five-inch,$100millionairePauluccistruggledtogettheimpoverishedwriterintohisSearsRoebuckovercoat.Justatiny,littlething,buttothatwriter,Pauluccidefinedhimselfbythatonecourteousgesture.

“I’vebeeneatingJeno’sPizzaRollsforthepasttenyears,”hesaid,“evenafterJenosoldthecompany.IsurewishedIlikedthembetter.”

In1990,JenowentontofoundacompanynamedLuigino’sinDuluth.Thisprofitableprivatecompanyhassalesofahalf-billiondollars.InJuly2004,onhiseighty-sixthbirthday,Jenoannouncedthathewasturningoverthereinsofthiscompanytohismanagementteam.WhentheDuluthNewsTribuneaskedhimifthismeanthewasretiring,Jenoshotback,“Oh,hell,no….AslongasIlive,Ihavetodosomething.”RonBubarwasnamedchairmanandCEOoftheenterprise.HowwillJenotaketolifeinthewings?He’llbehelpful—justlikehewastothatlittle-knownjournalist.RonBubar,Jenowasquotedassaying,“willmanagewithmyfullsupport,andI’llbeabletodevotemoretimetosupervisemanagementofotherPauluccienterprises.”

Lesson60

HowtoBeFired

ThoseofyouwhofollowbaseballwillrecallthatownerGeorgeSteinbrennerfiredBillyMartinfivetimesasmanageroftheNewYorkYankees.Afteroneofthestormierepisodes,SteinbrennerhiredYogiBerratoreplaceMartin.Oneofthesport’smoreinventivehistorianstellsthestorythatBerrawasrummagingaroundinthedeskinthemanager’sofficewhenhefoundtwoenvelopesthathadbeenleftbehindbyMartin.Therewasa“#1”ononeanda“#2”ontheother.Bothweresealedandaddressed“Tomysuccessor,”andbelowthat,thewords“Openonlyincaseofemergency.”Berraputthembackinthedrawer.

Berrastartedoutwithaverygoodwon-lostrecord.Suddenlytheroadgotalittlebumpy,theYankeeslostafew,Steinbrennerwentonthewarpath,andBerrarushedtotheofficeandopenedupenvelope#1.Insidewasasinglesheetofpaper.Onitwaswritten“Blameitallonme.”

Terrific!That’sexactlywhatBerradid.TheteamgotbackinthewinningcolumnandSteinbrennergotoffhisback.Fourweekslater,anotherlosingstreak.Steinbrennerwentberserk.Berraranbacktotheofficeandopenedupenvelope#2.Itsaid,“Preparetwoenvelopes.”

Nexttolosingalovedone,losingajobcanbethemosttraumaticexperiencemanyofusfaceinalifetime.Butifyouareoneofthosewhohaveworkedforsomeonewhoisimpossibletopleaseorareinoneofthenotoriouslyhigh-turnoverbusinesses,youshouldbepreparingtwoenvelopeseveryday:the“Istay”envelopeandthe“Ileave”envelope.

stay”envelopeandthe“Ileave”envelope.

Survivorshavetheir“Ileave”envelopecleaned,oiled,andreadytofirewhenthatroaddoesgetbumpy.Theydon’tpanicifthey’reterminated.Theyusetheoccasionoftheirfiringtoextractthemaximumamountofconcessionsfromtheiremployers…employersalwaysfeelsomewhatguiltyaboutlettinggoeventhemostincompetentemployee.Survivorsnetworkextensivelywithintheirindustryandtheircommunityforanewpositionlongbeforetheaxfalls.

Behonestwithyourself.Youcanprobablytellifyou’reabouttobeletgo.Ifyouare,anticipate.Gettingfiredcouldbethebestthingthateverhappenedtoyou.Itwon’tseemthatwayatthetime.WhenChurchillwasturnedoutasprimeministerafterleadingGreatBritainthroughthedarkesthoursofitshistory,hiswifetriedtocomforthimbytellinghimitwasa“blessingindisguise.”“Ifitis,”saidChurchill,“thenitisveryeffectivelydisguised.”ButMrs.Churchillhadapoint.Afterall,lookwhathappenedtoRonaldReaganafterWarnerBrothersreleasedhim.OrLeeIacoccaafterhegotfiredbyHenryFord.

Lesson61

YouCan’tSolveaProblemUnlessYouFirstAdmitYouHaveOne

AlcoholicsAnonymoushasusedthatprincipleasastartingpointtoreclaimthousandsandthousandsoflives.Thousandsmoreareneverreclaimedbecauseit’ssohardtochange.

Sheerstubbornnesshasdestroyedalotmorebottomlinesthannewtechnologies.TherewerejustasmanymeanspiritedjibesatCoca-ColaforabandoningitsoriginalformulasastherewereatFordwhenitunveiledtheEdsel.ThedifferencewasthatForddecideditwasgoingtoprovethemarketplacewaswrongandstuckwithitsmistakefartoolong.Coca-Colarealizedearlythatwhilehumiliationwasinescapable,horrendouslossesneednotbe.Itcutitslosses,anditsmistakecostitalotlessmoneythanstubbornpridecostFord.

Campbell’sspentyearsdevelopinganewofferinginwhat’scalledthe“functionalfood”category.NamedIntelligentQuisine(IQ),marketingconsultantSangitaJoshidescribesitas“afrozenfoodlinethatwouldhelpolderAmericans”needingtomodifytheirdiets.Ithad“greatendorsementsfromthemedicalfraternity;manytrials…andyetitbombedduetopoortaste.”Campbell’sactedquicklyandregrouped.

Productwithdrawalsthesedaysdon’thavetobejusttimely.Sometimestheyarerealtime.BillGateswasdemonstratingtheintroductionofanimproved

Windows98programinfrontofaslewofjournalistsandliveTVcameras.Asthedemonstratortoutedtheprogram’svirtues,WindowscrashedinfrontofGod…andGates!Onthemonitorappearedtheinfamous“bluescreenofdeath”anditswhite-typederrormessage.Theeverquick-wittedBillintervenedinananosecondwith:“Thatmustbewhywe’renotshippingWindows98yet.”

Onethingprofessionalstockandcommoditytraderslearnearlyisthattheydon’tgiveawaymedalsforcourageinthemarketplace.Thereisonlyonerewardthemarketplacehastooffer:money.

Ifyou’renotmakingany,bailout.Quickly.

Lesson62

IfYouCanAffordtoBuyYourWayOutofaProblem,YouHaven’tGotaProblem

Facingtheresultsofahugemistake,manypeoplewillstopdeadintheirtracks,tooemotionallydrainedtoseethatanyproblemthatcanbesolvedwithacheckbookisn’treallyaproblem,it’sjustanexpense.Oncethemistakeisrecognized,what’slostislost.Don’tfreeze.Act.Ifyoucanbuyyourwaybackontherighttrack,doit.Quickly.

Thenit’snolongeraproblem,it’sjustanegotiationoverthecostofthesolution.Hereareafewexamples.

1. BudGrant,MinnesotaVikingscoach,decidestogetoutbeforeheburnsout.Hissuccessorprovestobelessthansuccessful,andfourthousandseason-ticketholdersthreatentocancel.Solution:Buyyourwayout.IftheywantGrant,getthemGrant.ThemanwhotooktheVikingstofourSuperBowlsisreluctant,somanagementmakesthatfamousoffer,theoneyoucan’trefuse.Grantcomesback,andthecancellationsstop.Grantcostthemplenty,butleavinganopensoreuntreatedwouldhavecostthemahellofalotmore.

2. Akeycustomerisfuriousbecauseyourfactoryblewthedeliverydate.Solution:Buyyourwayout.Tellhim,nochargefortheshipment,evenifitmeansyouhavetohandout$5,000to$10,000

to$25,000worthofmerchandise.Youwillkeepthatcustomerforever,andyourfirm’sreputationandmoralearepreserved.Sure,itcancostbigmoney,butwhichischeaper:eatingtheloss,ortryingtoputanewkeycustomeronthebooksandhavingaoncekeycustomerspreadpoisonallovertown?

3. OneofmybestcustomersandIwereatLakePlacidforthe1980WinterOlympicstoseethehockeyfinalsbetweentheSovietUnionandtheUnitedStates,whichhappenedtobethemaineventthatyear.Iwastoldwehadgoodseats—Ipaidafortuneforthem—butwhenwegottothem,wewerebehindanobstructionandsohighupyoucouldgetanosebleed.Thecustomerwasunhappy;Iwasembarrassed.Eventhoughitwasn’tmyfault,didIlethimsittherebroodingaboutthemiserabletimehewashavinginmycompany?No.Solution:BenFranklintotherescue.Iwenttothemainfloor,spottedtwohigh-schoolkids,andaskedthemiftheywereinterestedinswitchingseatsfor$100.TheythoughtIwasnuts,smiled,saidyes,andtheywerehappy.Iwashappy,mycustomerwashappy.AndtheUnitedStateswonthegame.

Lesson63

“IHaveNeverSeenaBadRésumé”:JohnY.Brown

TheformergovernorofKentucky’swryobservationshouldbetattooedoneverymanager’sforehead.Everybody’sawinneronpaper.It’sinthefleshthatthedifferencesstandout.WhowouldhavehiredfailedhaberdasherHarrySTrumanbasedonarésumé,orchosen73-year-oldEurekaCollegegraduateRonaldReaganoverWalterMondale,apolishedlawyer,aftercomparingtheirpapercredentials?Hiringtherightpeopleisthegreatesttalentamanagercanhavebecausegoodpeopleproducegoodworkandlousypeopledolousywork.That’swhyAlfredSloan,themanagerwhomadeGeneralMotors,spentsomuchtimehiringpeopleevenforpositionsthatseemedroutine.It’swhyattheprestigiousfirmofLatham&Watkins—asbusinessconsultantDavidMaisterhaswritten—“allcandidatesgettwenty-fivetothirtyinterviews,comparedtoanorminthelegalprofessionofapproximatelyfivetoteninterviews.”AndLatham&Watkinsisregardedinknowledgeablecirclesasoneofthebest-runlawfirmsinAmerica.Itrytotakeitastepfurther.Igetinvolvedinthehiringprocessnotjusttogetgoodnewpeoplebutalsotoremindtheoneswhoarealreadywithusaboutwhat’simportantatMackayEnvelope.

Everyfewyearswehavetohireanewreceptionist/switchboardoperator.Now,ordinarilythisisajobthatwouldbehandledroutinelybyacompany’spersonneldepartment,andnotevenbytheheadofthedepartment.Notatmyshop.Idothisonemyself.AndImakeitthebiggestdealsincethesearchforareplacementforJohnnyCarson.(AndJayLenolandedthatspotthirteenyearsago.)Employeesareaskedtosubmitcandidatesandremindedthatforninety-nineoutofahundredpeoplewhocomeintocontactwithMackayEnvelope,the

nineoutofahundredpeoplewhocomeintocontactwithMackayEnvelope,thefirstsignificantimpressionofthecompanyisfromthereceptionist/switchboardoperator.

Bythetimewefindtherightperson,everyoneintheplaceispartoftheprogramandtotallyawarethatcourtesyandattentiontodetailarecriticalconcernsatMackayEnvelopeandthatyou’resomeonespecialifyou’reaskedtoworkhere.We’renotfillingslots;we’relookingforcapable,caring,conscientiouspeople.

Asaresult,whenyoucallMackayEnvelope,yourcallisusuallyansweredafternomorethanthreerings;youhearapleasantvoice,avoicewithasmileinit;andifyou’vecalledusmorethanonce,chancesarethereceptionistrecognizesyourvoiceandcallsyoubynamebeforeyouevenhaveachancetoidentifyyourself.

Justrecentlywerananadforasalespersonandreceived135résumés.Thirtywerescreenedthroughinitialinterviewing,andIinterviewedthe8finalists—andrejectedallofthem.Wewerebacktosquareoneagain.

Searchesforourfirmmaytakethirtydaystotwoyears.“Buthowcanthatbe?Howcanyoutolerateunfilledvacanciesforthatlong?”I’vebeenasked.First,weplanourneedssowearen’tbackeduptothewallwhenanyonepersonleaves.Second,I’vebeeninbusinessformorethanfortyyearsandI’vebeen“openforhiring”fifty-twoweeksayearforyears.Whenanyonereallysolidcomesthroughthedoor,theyhaveajob—evenifwedon’thaveaplace.Thatgivesusbenchstrength.Third,ourselectionprocessissorigorousthatourlong-termretentionrateiswellabove80percent.GettinghiredbyMackayEnvelopeislikeabattlefieldcommission.Itgeneratespridefortherecruitandfortheentireworkforce—whichseesrealevidencethatmanagementisdoingitsjob.

Ifyouwanttounderstandthefundamentalsofhiring,gobacktothebasicsofbuyingandselling.You,theemployer,arebuyingandheorshe,thecandidate,isselling.Therésumé,theinterview,lettersofrecommendation,references—theseareallsellingtools.Putyourselfinthecandidate’sshoes:Doyouexpectthesuithe’swearingarehisbestdudsortomorrow’sSalvationArmycontribution?AreMary’shandpickedreferencesgoingtotellyousheisageniusoradunderhead?Whatdoyouexpectthereferencelettertosay:“IhopeyourcompanycandosomethingwithJackbecause—Godknows—wecertainlycouldn’t!”?

couldn’t!”?

Now,shouldyoubeoffendedordistrustfulbecausethecandidateissellinghard?Notonyourlife!Sellingskillsmaybeexactlywhatyou’relookingfor.Butthereisabigdifferencebetweenadmiringabeautifullyproducedtelevisionadandbelievingit.Whenyouhire,it’syourjobtobetheproductqualityengineerwhotestsandstampsapproval.YoumayrememberthatoldchestnutofaTVadforHanesmen’sunderwear.Arelentlessqualitycontrolleryanksandstretchestheelastictothemax—InspectorNo.12:“Theycan’tbeHanesuntilIsaythey’reHanes.”

I’mnotgoingtogointothetechniquesofinterviewingacandidate.Muchhasbeenwrittenonthatbyspecialistselsewhere.AtMackayEnvelopewehaveaten-stephiringprocessthatIdothinkisuniqueanduseful.Sure,wedon’tusealltenstepsforeverynewhire,butweusemoreofthemthanyoumightthink.IfitsoundsasslowandaspainfulastheChinesewatertorture,imagineyourpainattheotherendifyouhavetofiresomeoneyoumistakenlyhired.Thentheinvestmentdoesn’tlooksobad.

1. Thecandidateisinvitedoverforaninterview.Nothingexceptionalhere,exceptthatourpersonnelinterviewerisaskilledgatekeeper,brightenoughtoknowwhatmanagementislookingforandsecureenoughnottoautomaticallyscreenoutintimidatingorunusualcandidates.

2. Thecandidateisinvitedbackforsixtoeightfollow-upinterviewswithmembersofourmanagement.Againnotunusual,exceptthattheinterviewersdiscusstheirfindingsandmustmakeaspecifichire/rejectrecommendationwithreasonswhy.(It’sgreattraining.)

3. Italkwiththemforthirtyminutes.Orrather,theytalkwithmeforthirtyminutes.Ican’ttellyouhowmanyjobinterviewsoccurwheretheCEOprattlesonabouthowhebuiltthecompanyorhisviewsasanindustrystatesmanwhilethecandidateisgradedonhowsympatheticallyhenodshisapproval.

4. Italkwiththemonthephoneforthirtyminutes.Howmuchofyourbusinessinandoutsideanorganizationisconductedthesedaysbytelephone?Canthepersonproject,persuade,andcommunicateclearlyoverthephone?Nowisthetimetofindoutifyou’rehiring‘OprahWinfrey’oranansweringmachine.

5. Idialupsomeoutsidesources.Checkoutthecandidateinthe

industry.Whoknowsorshouldknowaboutthisperson?Contactpeopleyoutrustandwhohaveagoodfeelforotherpeople.

6. Iinterviewcandidatesintheirhomesettingwiththeirspouseandchildren.Iwanttoseethecandidate’spersonalvaluesatworkinthemostrevealingsetting.It’salsoagreatintegritytest.Doesthecandidate’shomelifematchthedescriptionintheinterview?

7. Isocializewiththecandidateinadifferentenvironment.Isthecandidateaclassicalmusicormoviebuff?Thenit’sofftotheconcerthallorthetheaterwithcandidateandspouse.Howdoesthispersonactinasocialsetting?It’sespeciallyimportantforsalespeoplebecausethat’swhentheyneedtobetheirmostskillfulandpersuasive.

8. Thecandidateseestwoorthreeofmypeersinother,noncompetitivecompaniesinmytown.Thevisitsarebrief.HowdoIgetmyassociatestodevotetimetothis?Ofcourse,Ireciprocateandreviewtheirfinalcandidates!

9. AtriptotheMaster.Everycityhasamasterofprofession—mastercontroller,masterpurchasingagent,masterexecutivesecretary.Thesuccessfulcandidatehastopassmusterwiththemaster.Imakeapointofpersonallyknowingthemasters.(Bytheway,theirleadsareoftenaterrificwaytofindcandidatesinthefirstplace.)

10. Atriptothecounselor.Theindustrialpsychologist’sanalysisisoftenenlighteningbutneverbinding.Itisusuallymosthelpfulinaddressingsomeone’sstrengthsorweaknessesafteryouhirethem.

Thosearethetenstepstosuccessfulhiring:Mackay’sBootCampforNaturalSelection.Bytheway,Inevercalltheirreferences.Inthemiddleoftheinterview,Ialwaysaskforthenameofaninfluentialteacherormentorwhoknowstheirstrengthsandweaknessesintimately.It’ssurprisinghowoftenthatnamediffersfromtheonesontherésumé.

Happyhunting!Andremember,don’tbagitunlessyouexpecttobehappywithithanginginyourofficeforsometimetocome.

Lesson64

TheAcidTestforHiring

Askyourself,Howwouldyoufeelhavingthissamepersonworkingforyourcompetitioninsteadofforyou?

Lesson65

IfYouWanttoBeSantaClaus,YourSledBetterBeAbletoPullaTrailer

WhenIstartedinbusinessin1960,IthoughtitwouldbeanicegestureifIgavemyemployeesalittleChristmasbonus.Moneywasoutofthequestion,soIgaveeachoneofthemaChristmasturkey.ThefirstyearIgaveaway12turkeys;thesecondyear,itwas35;then50,then75,andnowit’sover550…andthereisnowayI’lleverbeabletoquitwithouthavingarevolutiononmyhands.There’snothingthematterwithbeinggenerous,butbewareofspontaneousgesturesunlessyouremembertheyhaveawayofbecomingpermanent“traditions.”

Lesson66

What’stheBestWaytoSaveTime?

Spendmoretimeontimemanagement.You’reinasgoodapositiontosavetimeasyourrichestandmostpowerfulcompetitors.Overalifetime,it’sincrediblehowmuchtimeyoucansave,andtheadvantagesyoucanachieve,whileyou’resittingonyourduffinyourcar.Forexample:

1. Useacellphone…butdoitwithrespectforthepostedrules,oryoumayalienateimportantpeople.Ifyoucallinyourcar,useacarphone.InvestigategadgetslikeaBlackberrythatcangiveyoutotalcontrolovere-mailingandphonelists.

2. Alwaysphoneaheadwhenyoumakeacallonacustomeroraprospect.And,makesureyouhaveboththecustomer’slandlineandcellphonenumbers,aswellastheire-mailaddress.

3. Alwaysparkyourcarinagetawayposition.4.Usethecar’sCDplayertolistentodisksthatteachyousomething,insteadoftuningintotheusualbabbleontheradio.

4. NevertravelwithoutaPDAorapocketdictatingunitatyoursidesoyoucan“writeyourselfnotes”whileyou’redriving.

Addafewnoncartime-saverstothatlist:

6.KeepthatPDAorrecorderinyourcoatpocketorbyyourbedside.You’venowdoubledthehoursyoucanbegettingahead

bedside.You’venowdoubledthehoursyoucanbegettingaheadofthecompetition.7.Planoutyoure-readingdaily.Havealltheimportant

publicationsloggedforinstantreference.Ramblingthrough“paper”papersisaluxuryofthepast.Ifyou’relikelytobewaitinginahotelroomorareceptionarea,knowexactlywhichWebaddressorlaptopfileyouwillmovetonext.8.NevergotothebankorthecornerATMmachineduring

Fridaylunchhour.9.Neverhavecoffeewithanothersalesperson,onlywitha

customer.(Makesureyouknowwhichsortoflattethey’renutsabout.)10.Justforthehellofit—foranentireweek—switchyour

readingplan.Dumpthesportssectionorgossipscoopandreadthehometownnewspapersofyourmajorcustomers…orthetradejournalsofyourkeycustomersorsuppliers,sothatyoucanlearnwhatthey’reworriedabout.ThroughGoogle,youcanreachforty-fivehundredcontinuouslyupdatednewssources.

Lesson67

Don’tGetMadandDon’tGetEvenEither

Likeeveryoneelse,Ihaveaccumulatedmyshareofenemiesinthecourseofalifetime.It’snothingtobeashamedof.Forgivethyenemiesisverydifficultadviceformanyofustofollow.Afterall,ifsomeonehasharmedus,wetendtowanttogetbackatthem.Wecancarryourgrudgesformany,manyyears.

And,ofcourse,itistotallycounterproductive.IoncefiredanemployeewhothenwentintocompetitionwithmeandbeganusingwhatIfeltwereunfairbusinesstactics.Thepsychicenergyandaccumulatedbitternessthatwentintomythoughtsofrevengeconsumedmeforthebetterpartoffiveyears.

Itwasmorethanawasteoftime,becausewheneverIthoughtaboutit,Igrewvindictiveandsour,andthoseattitudesspilledoverintoeverythingItouched.AsaresultIlostmorethandidtheobjectofmyrevenge.

Ifyoucan’ttakethebestadviceandforgiveyourenemies,thentakethesecondbestandforgetthem.Theonlywayyoucanachievetruerevengeisnottoletyourenemiescauseyoutoself-destruct.

Lesson68

KnowThineEnemy

Knowingyourcompetitionisjustasimportantasknowingyourcustomer.

Letmeillustratethepointbycallingforthabrieftaleofhighintrigueandtheclashofarmsfromthechroniclesoftheenvelopegame.

AmanufacturerIknowhasamajorcompetitor,withalargerandmoremodernfacility,locateddirectlyacrossthestreetfromhisownplant.They’rebothfinecompanies,andforyearsmyfriendwasrankledbythefactthathiscompetitorwasthesolesuppliertooneofthearea’sFortune500/NYSE-listedcompanies.Thoughhewasalwayswillingtoacceptthepropositionthatnoaccountwaslockedupforever,hecouldn’tdislodgethecompetitionandcrackthisprospect.Hetriedallthestandardploys.Andhegotnowhere.

Thenhedecidedtotryadifferentapproach,andinsteadofconcentratingonthecustomerhefocusedonhiscompetition.Didtheyhaveaweaknessthatplayedtooneofhisstrengths?

Itturnedouttheydid.TheprospecthadexpandedoperationsintheSouth.Whenheanalyzedthecompetition,herealizedthattheirclosestplantwasinNewYork.HehadaplantinBirmingham,Alabama.Didheusethatinformationtogainacompetitiveedge?Youcanbetyourlast#10envelopehedid.Itwasobviousthathiscompetitorcouldn’tmatchhiminpriceorserviceinthatparticulararea.

Thenexttimeoneofmyfriend’srepswalkedintotheprospect’soffice,hewasabletoofferapackageforthesouthernoperationthatgavehimhisfirstmajorinroadsintotheaccountandlefthiscompetitorinthedust.

Heneverwouldhavewontheaccountifhehadkepthisattentionsolelyonhisprospect.Hisunwillingnesstobelievehiscompetitorwasinvincibleledhimtodevelopsufficientknowledgeofhiscompetitor’soperationstocausehimtoseizetheinitiativeandclosethesale.

Unlessyouhaveauniqueproductorservice,orrunastate-ownedbakeryinFidelCastro’sCuba,competitionisafactoflife.Youmustdealwithit.Thebestwayistogatherwhatknowledgeyoucanandthenact.

Alongwitheverythingelsethathaschanged,theoldgladiatorialstyleofcompetinghaspassed.Nolongerdowejustclimbintotheringandhaveitout.WhenFlaviusthrusthisbroadsword,Spartacusraisedhisshield.Thatwasreactivecompetition,basedentirelyonwaitingfortheindustryleadertomove,andthencountering.Theoutcomedependeduponthestrength,speed,weaponry,andreflexesofthecombatants—andwhethertheColiseumwasmuddyornotonthedayinquestion.

Planningwasminimal.Inmarketing,thisoldroutinetranslatedintomindingthefourP’s:

ProductPricePlacePromotion

Itworkedoritdidn’t.Thatday.Ifitdidn’twork,youtriedanotherprospect.

Todaywecompetedifferently.Warfare,inboththemilitaryandcorporatemodes,hasbecomemuchmoresophisticated,moreanalytical,morestrategicratherthanjusttactical.Wecorporatetypes,withourmanagementteams,thegeneralstaffsofourboardroombunkers,pressthenoiselessbuttonsofourcomputerizedwarmachinestocreate:

Marketingstrategies

PositionpapersLong-rangeplansNiches,goals,objectivesAndmoreinformationthanwecanpossiblydigest

Theoversimplificationsofthegladiatorialerahavebeenreplacedwiththeovercomplicationsoftheeraoftechnology.Now,weliterallystudyourcompetitorstodeath.Ithasbecomeimpossibletostayontopofallthedataandstillrunabusiness.

Manymanagers,whilecallingformoreinformation,areoverwhelmedbytheinformationtheyalreadyhave,andwhattheydohave,theyusepiecemealorimproperly.Knowledgeisnotpowerunlessitisused.Itdoesnothavetobeperfect,butitdoeshavetobeaccessible.Anditrequiresmanagerswhohavethejudgmenttoactonitproperly.

AtMackayEnvelope,weputthisideaintopracticetwodecadesago,andwecontinuetoswearbyittoday.Conceptuallyit’saspin-offofourcustomerprofile,sowecallitourcompetitiveprofile.It’shereinitsentiretyonthefollowingpages.Andwefillitoutoneverysignificantcompetitorwehave.

MackayEnvelopeCompany

12P’sCompetitiveProfile

Date__________________

Lastupdated___________

By____________________

1.Pedigree

Nameofcompany_____________________________________

Headquarterslocation__________________________________

Subsidiaryorindependent?______________________________

Ifsubsidiary,ofwhom?__________________________________

_____________________________________________________

Publicly/privatelyheld__________________________________

2.PhysicalScale

Numberofplants______________________________________

Plantlocations________________________________________

Numberofemployees__________________________________

Whatgeographicareascantheyservebest?_________________

Whatgeographicareascantheyserveadequately?___________

3.PerformanceasanInvestment

Fiscalyearendsonwhatdate?____________________________

LYrevenues___________________________________________

LYprofits____________________________________________

Performancetrendpasttwotothreeyears__________________

Any unusual financial issues (heavy inventories, etc.)?______________________________________________________________

D&Brating___________________________________________

Overallfinancialcondition(checkone):Strong______________

Satisfactory______________Shaky______________

4.Pricing

Theirpricingattitude(checkone):Highandmighty_________

Downanddirty________________________________________

Howdotheyrespondtopricingcompetition?_______________

5.People

Unionized(ifso,bywhom)?_____________________________

Whoarethetwotothreemostimportantplayersinthefirmandwhataretheir positions?_____________________________________________________________________________________

What is their reputation as an employer?________________________________________________________________________

6.Positioning

Whatistheirtargetmarket?_____________________________

Whatuniqueproducts(features)dotheyoffer?______________

Whatisthisfirm’sshort-termstrategy?____________________

Whatisthisfirm’slong-termstrategy?_____________________

7.Plans

Do they want to hold position/grow aggressively?________________________________________________________________

Are they targeting an acquisition/rumored as an acquisition/ mergercandidate?_____________________________________

Aretheyrumoredtobedevelopinganyproductsorservices?

_____________________________________________________

8.PerformanceasaSupplier

Averagedeliverytime___________________________________

Qualityofservice______________________________________

Servicestrengths_______________________________________

Serviceweaknesses_____________________________________

Hard/easytoresolvecustomerproblems___________________

With what accounts do they have the best relationship?____________________________________________________________

What accounts would it hurt them the most to lose?_______________________________________________________________

What is their practice regarding entertainment, gifts, etc.?_____________________________________________________

Who are their most important suppliers?________________________________________________________________________

Theirbusinesspracticesreputation(checkone):

Fullyaboveboard___________Lessthanperfect___________

9.PrestigeintheBusinessCommunity

Characterize their reputation overall___________________________________________________________________________

Has this firm (or its principals) had any legal or image problems?_____________________________________________________

Doesthefirm(oritsparent)haveanystrongcharitable,social,orcivicinvolvements?_____________________________________

Howabouttopmanagementofthecompany?_______________

Howisthecompanyregardedwithinourindustry?__________

Byourtradeassociations?_______________________________

10.ProbingforData

Dowehaveanyemployeesrecentlyrecruitedfromthemwhoshouldbedebriefed?____________________________________

What customers either used this competitor in the past or use them inconjunction with us who are reliable information sources about thisfirm?________________________________________

Whoelsedoyouknowwhocansupplyinformationaboutthiscompany?____________________________________________

Do we know how this company perceives us? (lazy, aggressive,technicallysuperior,etc.)________________________________

Isnewsaboutthiscompetitorroutinelyservedinthegeneral,financial,and tradepresson theWeb?Who’s responsible fordoing it?Howareimportant developments shared?____________________________________________________________________________________________________________________

11.PrizeFight…ThemandUs

Which accounts do they have that we want?_____________________________________________________________________

Who is their salesperson(s) for these accounts?___________________________________________________________________

What piece of the business (territory, market segment, etc.) do theyoperate in? How can we profitably grow our share?___________________________________________________________

Havewe(oranyoneelse)everwonbusinessfromthesepeoplebefore?Ifyes,howwasitdone?___________________________

12.Postmortem

Wewillbeatthiscompetitorifwedothefollowingfivethingsright:

A._______________________________________________________________________________________B._______________________________________________________________________________________C._______________________________________________________________________________________D._______________________________________________________________________________________E._______________________________________________________________________________________

Notewhatthisisnot.Itisnotaboundbook,orafive-inch-thickcomputerprintout.Itisnotfancy.Butthat’sthepoint.Fancydoesnotgetreadorused.Thisdoes.

Nowlet’sseehowtocompilethisandhowtouseit.

Whenwelaunchedthisprogram,wesetasideabouthalfadayaweektofilltheseout.Ittookustwoandahalfmonthstocompleteallthequestionnaires.Don’tletthatintimidateyou.Alotofthedatacanbegatheredbystaffandassistants.Forthemeatiestparts,threeorfourofuswouldsitdownasagroup:mymarketingandsaleshead,therelevantsalesmanager,thesalesperson,andme.

Now’sletgothroughthequestions,stepbystep:

1. Nameandlocationareobvious.Youwanttoknowifyou’resparringwithasuboranindependentandhowmuchpowerisbehindthem.

2. Thisprofileisdesignedformanufacturing,butitcanbeeasilyadaptedforbusinessesthatdealwiththeconsumer.Intheenvelopebusiness,geographyisveryimportanttocostsandservicequality.Ifyou’resellingsemiconductors,though,youmaywanttorephrase

thequestionandaskwhichmarketsegmentsorindustriesyoucanservewelloracceptably.

3. Youwouldneverstepintoaboxingringwithoutknowingifyouropponentwashealthyorjustovertheflu;itaffectshowyouplanyourfight.Anditisn’tjustyouwhoneedstoknow,it’salsothesalesmanandtheaccountmanager.Afterall,whodecidestothrowthelefthooksonadailybasis?

4. Gettoknowyourcompetitor’smovesonpricing,andwatchoutforchanges.Thisisoneareawherecompaniesoftenswitchtheirdancestep.

5. Unionizationsometimesmeanslossofflexibility.Knowwhotherealdecision-makersare,andmakesureyourpersonneldirectorknows,too.Afirmwithmoraleproblemsisusuallyachoicetargetforaggressivecompetition.

6. Whoandwhataretheyaimedat?Readtheirsalespromotionmaterialandtheirannualreports.Today’strendstodisclosurehavemademanybusinessesstrategic“openbooks.”Periodicallytestthewater:Aretheyreallyachievingthestrategytheysaytheyarepursuing?

7. “Staytunedforfurtherdevelopments.”Withtoday’smergermania,anythingcanhappentoacompetitor.Thesaleofthebusinesscanmeandismembermentorahugeinfusionoffreshresources.

8. Knowhowyouropponentsdobusiness.Thatdoesn’tjustmeanpricesandproducts.Whatistheirservicerecord?Howdotheytreattheirresources,andwhoarethey?Whentheclientgoesouttolunch,isitlobstermousseorchickenwings?Knowtheirethics.Youdon’thavetostooptoconquer,butknowwhatyou’redealingwith.(Inareaslikethis,makedamnsureyouknowyourfacts,andkeepyourfileslocked.)

9. Reputationandcivicinvolvementarecritical.Iftwofirmsdobusinessprincipallybecausetheirrespectivepresidentssitonthesamesymphonyboard,youbetterfindawaytodealwiththat.

10. Someofthemostvaluabledataaresoft:opinionandwordofmouth.Filtersuchinformationcautiously,butuseitbyallmeans.Intelligencegatheringdoesn’tmeanconductingaWatergate;itmeansnurturingtrustedresourcesandreadingthetradepress.Makesurethesourcesareconfidentiallydocumentedforfutureuseintheeventyoursalespersonormarketingheadtakesawalkinpursuitofgreenerpastures.

11. Now,whatdirectgainsdowewanttomakeagainsttheseopponents?Lookatthegamefilm:Howweretheybeatenbefore?

12. What’syouractionplan?Bebriefanddirect.Don’tforgettocomebackinthreetosixmonthstoseeifyou’redoingwhatyousaidyouwould—orifsomenewactionsareinorder.

Bythistimeyouprobablyhavefiguredoutanastoundingfeatureofthisquestionnaire.Itisnotjustwhatittellsyouaboutyourcompetitionthatmakesitsovaluable,butwhatittellsyouaboutyourownstrategy.

Onceyouhavecompiledastackofthesequestionnaires,sortedthemout,comparedthem,andcategorizedthem,you’llstarttoseeapatternemergefromstep12.Theactionsyouneedtotaketomakecompetitiveinroadswillrepeatthemselves.Yourcompetitiveprofilehasbecomeastrategicplan.Idon’tknowofabetter,simpler,moreeffective,ormoreusablemethodofdevelopingone.

Lesson69

Don’tBeIntimidatedbyaReputation

VonClausewitz,thegreatmilitarystrategist,observedthatitisthemarkofinadequatecommanderstofailtoseizetheinitiativebecausetheyoverestimatethestrengthoftheiropponents.Foryears,GeneralMotorsandIBMdominatedtheirindustriesdespitecriticaldeficiencies.Thecompaniesthatshouldhavebeenwillingtofightthemformarketsharereallyweren’tcompetitors,justsymbionts,lookingforunfilledmarketnicheswheretheycouldpickupafewcrumbsthatfelloffthemaster’stable.

Whenthecompetitionfinallycame,itcamefrompeopleacrossaculturalchasmsowidetheydidn’tunderstandwhatitwasthatmadethesegiantcompaniessowonderful,orfromshoestringoperatorswhohadnothingtolosebyignoringthepopularmythology.

IttooktheJapanesetoshowushowvulnerableGMwas—andMicrosofttoshakethelivingdaylightsoutofIBM.GMandIBMwereredefinedcompetition.Weallare,anditdoesn’tmatterifyou’reMicrosoftorDell,ToyotaorHonda.Weallliveordiebythecompetitivesword.Andwealwayswill.

CHAPTERFIVE

Quickies

Quickie1GratitudeIstheLeastDeeplyFelt

ofAllHumanEmotions

You’vehearditexpressedbefore,bothinthevernacular(“Whathaveyoudoneformelately?”)andintheclassicalmodes(“Howsharperthanaserpent’stoothitistohaveathanklesschild”),butitstillbearsrepeating:Don’texpectgratitudetolastanylongerthanittakesfortherecipientstosaythey’reeternallygrateful.

Wearrivedwherewearetodaybecauseanumberofpeoplegaveusalegupalongtheway,butaskforashowofhandsand99.9percentofusconsiderourselvesself-mademenandwomen.

Hatredandevenloveendure,butthereisinthehumanmakeupthatwhichisunwillingtobeartheburdenofbeinggrateful,andthereforemorallybeholden,toanyoneforverylong.Sowhateveryoudoforyourkids,yourspouse,yoursubordinates,yourboss,oryourfriends,justremember:You’llbealothappierifyouthinkofitasdoingitforyourself.Andthentrylikehelltoforgetyoudidit,becausethebeneficiaryhas.

Quickie2It’sNotYourLastGoodIdea

Ibelievethatthere’sarationalexplanationforwhynewideastendtospringupfromunrelatedsourcesalmostsimultaneously.Atanygivenmoment,therearecertainwidelyacceptedgoals…say,gettingrich,orhavingthinthighs.Withallkindsofpeopleinallkindsofplacesbuildingonandusingthesamebodyofknowledgeandcommonexperiencetotellyouhowtoreachthosegoals,you’reboundtofindsomemarkedsimilaritiesbetweentheroutes.

Itseemstohappenallthetimewithscientificdiscoveries.Sowhynotwithcreativeones,too?Infact,we’resuchprisonersofourtimesandownenvironmentsthatatrainedeyefamiliarwiththetinystylisticquirkspeculiartoeachperiodcaneasilydetectmostartfakes…andtellyouexactlywhentheywerecreated.Wethinkalikemoreoftenthanwe’dliketoadmit.Andifyou’vegotonegoodidea,it’saprettygoodindicationthatyoucancomeupwithanother.

I’vedoneit—especiallywhenIthoughtsomeonehadstolenmyidea.Andsocanyou.You’vegottohavemorethanonegoodidea.Onceisnotenough(withapologiestothelateJacquelineSusann.)

Quickie3BuyCheapCarsandExpensiveHouses

IsupposetherearepeoplewithrealmoneywhodriveCadillacsandMercedes.Idon’tknowmany.Aslongaspracticallyanyonecanownoneoftheseso-calledprestigecars,who’sgoingtobeimpressed?Infact,theoppositeistrue.Ifyoucanaffordafancycar,youmakemoreofanimpactdrivinganordinaryone.Ifyou’reabig,fatguy,thenbuyabig,fatSUV,butnota$110,000Hummer.Thinkmoderateprice-point.Oneoftheleadingdepartment-storeheirsintheMidwestusedtodriveastandard-issueChevrolet.Okay,soitwasanewoneeveryyear,andbecauseitwastheonlyoneI’dseensince1942thatwasjetblackwithwhitesidewalls,itdidstandoutabit.Still,itwasaChevy.Andthiswentonuntilthemid-1990s.

Ifthereiseveratimewhentheopportunityforsnobberyandostentatiousnessexistsitisinthepurchaseofacar.Carsdepreciate.Housesappreciate.And,bytheway,Mr.DepartmentStoreneverlivedinanoff-the-shelfChevy-stylehouse.

Quickie4HowtoGettoKnowaCelebrity

YouandImaybefascinatedbymeetingcelebrities,butforthemostpartthey’reboredbymeetingus.Whenyoumeetacelebrity,whatcanyoutalkaboutthattheywillrememberandgiveyousomerealtake-homevalue?

Talkaboutwhateveritistheydothatmadethemfamous,andyoucanseetheireyesglazeoverastheygivethesameresponsesthey’vegivententhousandtimesbefore.

Thetrickistoavoidthefansyndromeandtreatthemlikehumanbeings.Findwheretheirinterestslie.Youcanbetitisn’ttalkingaboutwhattheydoforaliving.(Doesyourdoctorliketotalkshopatcocktailparties?)

YearsagoIwasinthefirstdelegationofbusinessmentovisitCubaafterCastrohadtakenpower.Iwasgivenaone-on-onewithCastro.IspokeinEnglish;Castro,whosupposedlyspokenoEnglish,spokeinSpanish.Aninterpretertranslated.

Imanagedtofindhishotbuttonimmediately.“Comandante,Inoticedthatyouareinexcellentphysicalcondition.Howdoyoudoit?”Iasked.ThelibraryhadloanedmeabiographyinwhichI’dreadthatbeforehegotintopolitics,hewasgivenatryoutasapitcherbytheoldGriffith-ownedWashingtonSenators.

Hiseyeslitup…beforethetranslation.“Bowling,”hesaidinSpanish,andhewentontodescribehowhehadinstalledabowlingalleyinthebasementofthePalaceoftheRevolution.Thenhereachedintoabreastpocketandpulledoutalittlenotebook.Thatwaswherehekeptarunningtallyofhisscoresandtheresultsofhismatcheswithhisgenerals.Thefinalcolumnshowedwhoowedwhattowhom.Notsurprisingly,theyallowedCastro;hehadbeateneveryoneofthem.“Whatanamazingcoincidence,”Isaid.“IhappentohavewontheUniversityofMinnesotabowlingchampionshipthreeyearsinarow.”“Oh,youdid?”Castroblurtedout—inEnglish.AllpretenseofhisinabilitytospeakEnglishhadvanishedintheexcitementofhavingdiscoveredafellowbowler.

Inaninstantherealizedwhathehaddone,andtheconversationconcludedquickly.Still,I’vebeendiningoutonthestrengthofthatstoryforyears,andIlearnedalotmoreaboutFidelCastrothanIwouldhaveifwehadsimplygoneafewroundsofthestandardcapitalismvs.communismexchange.

fewroundsofthestandardcapitalismvs.communismexchange.

Thekeytofindingoutwhatyouneedtoknowisthemostusefulsix-letterwordyouwilleverlearn:Google.Simplylogontowww.google.comandtypeinthenameofthepersonyouwanttolearnabout.Iusedtobuybookstotellmeallthisstuff.Nowyoudon’thaveto.Youdon’tevenhavetospendthebusfaretogotothepubliclibrary.

Let’ssaythatyou’vejustbeeninvitedtodinnerwithCatwomanHalleBerry.Justtypeinhernameandcallupanentryortwo.You’lllearnthat:

Shewasrunner-upintheMissUSApageantof1986.Togiveheractingasenseofreality,sherefusedtobatheforafewdaysbeforeportrayingacrackaddictinaSpikeLeefilm.She’sadiabetic.(So,becarefulwhatyouorder.)SheturneddowntheroleofAnnieinSpeedin1994.Halle’snamedaftertheHalleBuildinginCleveland.SheadoptedacatsothatshecouldacttheCatwomanpartbetter.

Commongroundforconversation…that’swhatyounowhave.

Nostaringatthetableclothfortwohours…

Getreal!IfyouwerestaringatthetableclothwhilehavingdinnerwithHalleBerryfortwohours,IhaveanothertopicyoushouldGoogle:CPR.

Quickie5TheBestR&DintheWorldIsNeverMoreThanaKeystrokeAway

IaskedoneofthetopinformationresearchersaroundforhistipsonhowtosearchfordataontheWeb.Herearehisseventoptips:

Learnhowtotypewhenyouareyoung.Voicerecognitionmaybeonthehorizon,butpeoplehavebeensayingthatforalongtime.Chancesareyouwillbeticklingakeyboardforsometimetocome.Thefasterandthemoreaccurately…thebetter.Avoidsearchingduringtheworkday,justbeforeschoolstarts,orjustafterschoolletsout.Thesearethetimesthattheprimesites

arelikelytobefloodedwithvisitors.Besureyouarespellingwhatyouaresearchingforaccurately.Garbage-in/garbage-out.Don’tjustsearchtheWebingeneral,searchparticularpublications.Let’ssaythatyouwantarticleson“compensation”—trysearchingwithinFortuneorBusinessWeekaswellasageneralsearch.Ifit’simportant,alwaystrytofindtwoorthreedifferentsourcestoverifythefact.TherearealotofsourcesontheWeb.Theyarenotallequal.YouarebetteroffstakingyourcareeronForbesorTheEconomistthansomesophomore’stermpaper.Saveyourresearchondiskoronpaper.Intwomonths,youwilltrytofindwhatyouthoughtyouknew…andlearnthatyourrecollectionisverydifferentfromthefacts.Recognizethateveryoneelsehasthesamemassiveaccesstoinformationasyoudo.Thatincludesinfoaboutyou.Soperiodically,searchyourself.Youmaybesurprised!

Quickie6“NothingIsGreatertoOneThanOne’sSelfIs”—WaltWhitman

Thenexttimesomeonecallsyouaone-way,egotisticalsonofabitch,don’tforgettothankthem.Theyhavejustprovidedastrongendorsementofyourmentalhealth.“Self-esteem”isabuzzwordthesedays,andit’sabouttime.Thehigheritis,thebetteryougetalongwithyourself,withothers,andthemoreyou’llaccomplish.

Humilityisthemostoverratedofhumanemotions.Thetwoworsthumanfailings,manyofusweretaughtwhenwewereyoung,arelyingandbragging.I’dratherstickwithWillRogers,whosaid,“Ifyoudoneit,itain’tbragging.”

What’sthematterwithbeingproudofwhatwehavedoneorthinkwecando?Inmyopinion,humilityiswhatourparentsandteacherstrytostuffuswithwhenwe’resixyearsoldtomakeuseasiertohandle,butit’sunnatural.Whenwe’reyoung,we’refullofthesensethatwecanandshouldbeabletodoalmostanything.

Dr.AnthonyGreenwald,apsychologistattheUniversityofWashington,seesthe“egocentricitybias”—thereinterpretationofeventstoputourselvesina

seesthe“egocentricitybias”—thereinterpretationofeventstoputourselvesinafavorablelightandthebeliefwehavemorecontrolovereventsthanweactuallydo—asasignofmentalwell-being.

Thatmakesperfectsensetome.Dr.Greenwaldcancallitthe“egocentricitybias,”butIcallitoptimism.AndIcalloptimismaqualitythatconsistentlydeliversresults.Didyouevergetagoodperformanceoutofapessimist?(Bytheway,nooneevercalledhimselfapessimist.Pessimistsalwayscallthemselvesrealists.)

Optimisminvolvesself-delusion,abeliefthatourownabilitiesaresuperiortotheobstaclesthatlogicallyshouldovercomeus.Butthat’sexactlywhat’sneededtoperformanyheavy-dutyassignment.

Howcanyoubeanygoodunlessyouthinkyoucanaccomplishwhatyou’renotsupposedtobeabletoaccomplish?Topperformersinathleticsorbusinessarealwaysconvincedtheycanbeheroes,eveniftheydon’tshoutitfromtherooftops.Anditshows.Infact,baseballscoutscallthatlook“thegoodface,”thesenseofself-confidencethatradiatesfromwinners.

Don’tletthe“egocentricitybias”/optimismbesnuffedoutinyou.It’sahellofalotmoreproductivethanhumility.

Quickie7ThereIsNoSuchThingasaBadMemory

LittleJohnny,insixthgrade,camehomewithareportcardthatwasallD’sandF’s.Hisfatheraskedwhy.“Icanneverrememberanything,”answeredJohnny.

Theoldmansaid,“Well,you’renotgoingtoanymorebaseballgamesuntilyougetyourgradesup.Andtobeginwith,forgettonight’sgame.”

“Now,waitaminute,”saidthekid.“Youcan’tdothattome.TheAstrosareintown.Clemensispitching.IlookedhimupontheWebthismorning.He’sallowedonly43earnedrunsallseason,andhehaspitched143.1innings.That’swith147strikeouts,andRogerhasbooked12winsalready.”

Can’tremember?

Youcanrememberanything…ifyou’reinterestedinit.AmanIknowcan’trememberthenameofthesecretaryofstate,butheremembersthelyricsto

rememberthenameofthesecretaryofstate,butheremembersthelyricstoeverysongIrvingBerlineverwrote.LetmeaddthatEinsteincouldn’trememberhisownphonenumber.“WhyshouldIbother,”hesaid,“whenIcanlookitup?”Thethingshedidremember,nobodycouldlookupunlessEinsteinhimselfwrotethemdown.

Nobodyexpectsyoutoalwaysrememberthenamesofyourcustomer’skids,butthatdoesn’tmeanyoucan’thavethemdancingrightofftheendofyourtonguewhenyouneedthem—ifyouusetheMackay66.

Youwritethemdownimmediatelyafteryouleaveyourmeetingwithyourcustomer.Theygostraightontotheform.Fiveminutesbeforeyouwalkintohisofficethenexttime,youreviewthatformandyou’reagenius…oratleastyouappeartobe.

Don’ttrytorelyonyourmemoryforstufflikethat.Paleinkisbetterthanthemostretentivememory.UsetheEinsteinapproach.Hewasnodummy.Ifit’swrittendown,youcanlookitup.Justbedamnsureyouwriteitdown.

Quickie8PutYourMemoryWhereYourMouthIs

Weallknowpeoplefrommodestcircumstanceswhohavemadeitbig.Andflauntit.Thenewlyrichoftendemonstratetheirinsecuritybyadoptinganostentatiouslifestyle.It’stheirwayofprovingtothemselvesandtheworldthatthey’vebecomeveryimportantpeople.

Oureconomicsystemencouragesacertainamountofthat.HowelsewouldwesellPorschesandBMWstoguyswhocouldwalktowork?Swimmingpoolstopeoplewhodon’tliketoswim?

Butfinancialsuccesscancreateamoreseriousmindbender:atendencytoforgetthepeoplewhohelpedusgetstarted,tousethosenewfoundrichestodistanceourselvesasfaraspossiblefromourorigins.

Nobodywhostartedwithnothingandendedwithsomethinggotthereallbyhimself.Once,longago,someonesawaqualityinyouthatmadethemwanttogiveyoualegup.Wouldtheyfeelthesamewayaboutyoutoday?Behonest.Iftheywouldn’t,ifsuccesshaschangedyou,thenit’stimeyougotbacktoyour

roots.Whatevermaterialthingsyouhavenowcouldvanishjustasquicklyastheycame.Betterholdontotheoneassetyoustartedwith—theappealthatcausedotherpeopletotrustandbelieveinyou.Stayintouchwithyourmentors.Ifyouletyourselflosecontactwiththem,chancesareyou’realsolosingcontactwithwhatgotyouwhereyouare.

Quickie9StaySharpbyPredictingtheFuture

Playthisgamewithyourself:Predicttheoutcomeofeventsthatinterestyou.

Thestockmarket

Elections

Athleticevents

Whatever

Therearethreerulestothegame.One,youhavetowriteyourpredictionsdown(otherwise,you’llcheat,youdevil).Two,youalsohavetowritedownthereasonsforyourpredictions.Three,whenyoulose,youhavetoforceyourselftoanalyzewhyyoulost,whyyourreasonsdidn’tholdup.

Ifyouregoneedsanoccasionalcoldshower,thislittleexercisewillprovideyouwithalifetimesupply.Itwillalsoforceyoutoreexamineandadjustyourreasoningwithouthavingtopayanypenaltyforbeingwrong.You’llfindthatthemoreyoudothis,themoreaccurateyou’llbecome.Andifyoufindyouhavearealtalentforit,then,butnotuntilthen,youshouldbackthattalentwithcash.

Quickie10ItUsuallyPaystoLookGood,butSometimesItPaysaLotMoretoLookBad

AMinneapolisbusinessmanwasonvacationinWaikikioverChristmas.Hewenttothebeachforhourseverydayandacquiredanimmaculatetan—fromtheneckdown.Notarayofsunshinereachedhisface,whichhekepttotallyshadedbyahat,sunrisetosunset.Hisfriendswerecurious,ofcourse,buttooembarrassedtoaskhimwhy,figuringthathemighthavemedicalproblemsthat

embarrassedtoaskhimwhy,figuringthathemighthavemedicalproblemsthatkepthimfromexposinghisfacetothesun.Finallyanacquaintanceaskedhim.Thebusinessmanlaughedandsaid,“Who,me?Askinproblem?Hell,no.NextweekIhavetotestifybeforethestatelegislatureandI’maskingthemforahugesubsidy,andIwouldn’tdarebecaughtwithatanonmyface.”

Quickie11TakeaMultimillionairetoLunch

EarlierItoldyouhowimportantitistouseshortnotestomakethatpersonalgesturetoyouremployeesandcustomers,andhowthatsimpledevicehasbecomealmostatrademarkofsomeofthemostsavvybusinesspeopleIknow.Letmeaddatailgatetothatadvice:Putthemostimportantpeopleyouknowonthatlistofpeopletowhomyoudropnotes.Yes,it’slonelyatthetop,andthebiggertheyare,themorestrokestheyneed.

Oneoftheforcesthatdrivesasuperachieverfarharderthantherestofusisaninordinateneedforrecognitionandapproval.Moneyisonewaytomeasureit.That’swhytheyworksohardtogetit.Butsoisacomplimentfromafriend.Andthosearealothardertocomeby.Soifyouknowoneofthesetypes,letthemknowyouappreciatethem.

IhaveabuddywhodoesitalittledifferentlythanIdo.Hehasfoundedthe“TakeaMultimillionairetoLunchClub.”“Ifyouwantasurefirewaytotellwhetherornotaguyisrich,”hesays,“it’swhenthecheckcomes.Themorebucksthey’vegot,thelesstheyhavetoprovethey’vegot,andtheeasieritistobeatthemtothepunchwhenthebillcomes.”

Quickie12It’sNotOnlyWhoYouKnow,butHowYouGettoKnowThem

IoncetookaclassatUCLAthatincludedthetopic“EighteenReasonsWhyYouShouldTravelFirst-Class.”Ithoughtthetitlewasacome-onforwhatevertheprofreallywantedtotalkabout,butitwasn’t.

Thebottomlineandprioritizedfirstreasonwasthepeopleyoumeet.Thereiscamaraderieinthefirst-classsectionthatyouwon’tfindintourist.Isaidcamaraderie,notsnobappeal.Whenyou’reinfirst-class,everyonewantstoknowwhyeveryoneelseiswillingtopayanoutrageous20to30percent

knowwhyeveryoneelseiswillingtopayanoutrageous20to30percentpremiumfortheprivilegeofdrinkingwarm,sweetchampagneanddisembarkingtwentysecondsaheadoftherestofthepassengers.Asaresult,particularlyonalong,internationalflight,youdogettoknowyourfellowfliersandcandevelopsomevaluablecontacts.Ihave.

Quickie13ToaNormalPerson,$10MillionWillSeemLikeEnough

“Butanyonewhothinksthat’senoughisnotthetypewhocanacquirethatmuchinthefirstplace”—JamesK.Glassman,magazinepublisher.

Quickie14HowtoBeattheLawofSupplyandDemand

Ageneralmanagerofamajorsportsfranchisetoldmethisstory.Oneyear,aftertheteamfinishedwaybelowexpectations,hundredsofpeoplecanceledtheirseasontickets.Teammanagementrealizedthatifthepublicwasawareofit,thecancellationscouldsnowball.Sotheykeptthenewsconfidential,didn’tpanic,anddevelopedaremarkablestrategytofillthoseemptyseats.

Inthelocalpapertheyrana$10blindadthatread,“Leavingtown.Fourseasonticketsforsale.”Theresponsewasoverwhelming.Whentheyfilledthoseorders,theyrananother,similarad,andquietlyparceledoutthosetickets.Ultimatelytheymanagedtosellallthecanceledseasonticketswithoutanyoneeverknowingwhatwasgoingon.

SomefriendsinNewYorktoldmethesameprincipleisusedintheirrestaurantbusiness.Whentheyopenanewrestaurant,forthefirsttwomonthstheytellabouthalfthepeoplewhophoneinforreservationsthattheplaceisfullforwhatevernighttheyrequestandtopleasephoneback.

Obviously,whatthey’redoingiswhatthesportsorganizationdid,maintainingtheillusionofdemandregardlessofsupply.Thelessonhereisnotthatpeoplearesheepbutthatinacapitalisteconomy,everythingthatissoldisacommodity,whetherit’sstocks,hardassets,seasontickets,orrestaurantseats.Noonewantsitifit’stooeasytoget;iftheycan’tgetit,ifit’sindemand,theneveryonewantsit.

everyonewantsit.

Marketinghasn’tchangedsincewedescribeditinLesson1:Oursenseoftheworthofanobjectisnotderivedfromitsintrinsicvaluebutfromthedemandthathasbeencreatedforthatobject.

Quickie15ThereIsaPlaceintheWorldforAnyoneintheWorldWhoSays,“I’llTake

CareofIt”

Themeetingisjustaboutover.Thebosshashandedouttheassignment.You’reabouttotroopoutthedoorandbacktothecubicledownthehalltodowhateveritisthat’ssupposedtobedone.

Twothingsarehappeningatthatmoment:You’retryingtofigureouthowintheworldyou’regoingtodowhateverimpossible,tedious,harebrainedjobyou’vejustbeenhanded,andyourbossiswaitingtohearyousaythemagicwords.Sobesmart.Thefirstthingyouhavetosatisfyistheboss’sneed,notyours.

Forgetabouthowyou’regoingtodoit.Sinceyou’regoingtohavetotakecareofit—that’swhatyou’regettingpaidfor—whynotlethimhearwhathewantstohear:“I’lltakecareofit.”

BabeRuthgotpaidtohithomeruns,andofcourse,hedid,714ofthem,butthemostmemorableoneheeverhitwaswhenhe“calledhisshot”andpointedtocenterfieldwithhisbatbeforehehititthere.

Callyourshot.Sayingyou’regoingtodoitbeforeyoudoit,counts.Itcountsbig.You’vegivenyourbosspeaceofmind.You’resomeonewhodelivers.Canyouthinkofabetterreputationtohaveinanybusinesssituation?

Quickie16NeverGivetheSameSpeechOnce

There’sananecdoteinabookbyDavidHalberstam,TheReckoning,inwhichhedescribeshowPhilipCaldwell,thenpresidentofFordMotorCompany,wassomaddeninglydemandingthatherequiredtheservicesoftendifferentspeechwriterstopreparethesamespeech.

I’dbewillingtobetanenvelopeortwothatonceCaldwellwasfinallysatisfiedwiththewrittenresult,hedeliveredittohistargetaudiencewithouthavingtrieditoutonasimilaraudiencebeforehand.

Itmakesnosensetoputinallthatworkgettingaspeechwrittenwithoutgettingafirmfixonthewholepointoftheexercise:audiencereaction.

There’sareasonBroadwayshowsdon’topenonBroadway.Theyopenoutoftownbecauseitgivesthecompanyachancetogaugetheeffectsoftheirmaterialonanaudience.Theseprosknowthatthereissimplynowaytoknowwhatworksandwhatdoesn’tbyreadingthelinestothemselves.Youhavetohavethatcrucibleoflivereaction.

Ifyougivespeeches,doesn’titmakesensetodowhatyoudowitheveryothermajorproductyourcompanyproduces:Dosomemarketresearch?Taketheshowontheroad—notinfrontofyourPRpeople,butdisinterestedtypesfarremovedfromyourcompany,likealocalserviceclub,theRotary,orKiwanis.Tryoutthosecornyjokes,honethatmaterial…untilyou’repositiveyou’vegotawinner.Itwillnotonlyimprovethetext,itwillalsoimproveyourownperformance,becauseyou’llhaveconfidencethatwhatyouaresayingwillgeneratetherightresponse.

Mostsuccessfulpeoplearegoodontheirfeet.We’reaninformationsociety,sotheabilitytotransmitthatinformationinanintelligent,succinct,andpersuasivemannerisaboutasvaluableaskillasanyonecanpossess.“Brilliantbutinarticulate,”maybeadescriptionthatwouldapplytoanuclearphysicistbutnottoanyheadhonchocorporatetypesIknow.They’rebrilliantandarticulate.Ionceknewafellowwhobouncedaroundfromoneprofessiontoanotherovertheyears,fromlawtopoliticstosellingsecuritiestopublishingtoadvertisingtowriting.Notjustsixdifferentjobs.Sixdifferentprofessions.Hewasn’texactlyatthetopoftheheap,buthestillmanagedaniceliving.

“Howdoyoumanagetojumpfromonethingtoanotherlikethat?”Iaskedhim,asmuchoutofenvyascuriosity,sinceIhaveneverventuredfarfromtheenvelopegame.

“Ihaven’t,”hesaid.“I’vealwaysdonethesamething.Sellwords.Thejobdescriptionsarejustalittledifferent.Copshaveanameforit.Theycallus‘worddinks.’”

Learntousethelanguage.Writtenandspoken.Anyonewho’saworddink

Learntousethelanguage.Writtenandspoken.Anyonewho’saworddinkhasgotitmade.

Quickie17ThereAreTwoTimesinLifeWhenYou’reTotallyAlone:JustBeforeYou

DieandJustBeforeYouMakeaSpeech

Thoselinesarefromaposteradvertisingacompanythatteachesthefineartofspeechmakingtobusinessexecutives.WhenIfirstsawthead,Isignedupforthecourse.ThenIbegantosignupmyemployees.WhatIrealizediswhatmostsuccessfulspeakersalreadyknow:Youmaybetotallyalonewhenyou’remakingthespeech,butyoudon’thavetobealonewhenyou’repreparingforit.

Whenyouspeakbeforecivicandprofessionalgroups,youandyourcompanygainpublicrecognitionandcredibility.Itwillhelpyourbusiness,butthat’snottheonlyreasonyoushoulddoit.Therealreasonisthattheskillswelearnbyovercomingourterrorofstandingupinpublicandspillingourgutscarryoverintotherestofourlives.Wegainself-confidenceandassertiveness,whichallowustobebettermanagers,bettersalespeople,andbetterleaders.

Aspeechisasalescall.It’sthetoughestkindofcallyoucanmake:You’resellinganintangible,anidea,notaproduct.Andit’sacoldcallonfiftyorahundredclosedminds,manyofthemcompletestrangerswhohavenoreasontobelieveawordyou’resaying.

Butjustasyouneverhavetomakeacoldsalescall,therearenocoldspeakingcallsifyoudoyourhomework.ThesolutionisanotherwrinkletotheMackay66,whichIcall“ElevenWaystoWinYourAudience.”

Notwoaudiencesarealike.Butifyoucananswertheseelevenquestions,you’llbeabletotailoryourmaterialtotheinterestsandconcernsofeachgroup,andIguaranteeyou’llwinthemover.

ThealternativeisfoundinanotherVanderZanden,Inc.,slogan:“Ifyoudoubttheconceptofeternity,makeafive-minutespeech.”

ElevenWaystoWinYourAudience

1. Whydidthisgroupinvitemetospeak?(statedreason)Howwasmytalkpublicizedandpositionedforthisaudience?

2. Whatisthisgroup’spurpose?3. Whatarethechiefcharacteristicsofthisgroup?(professional,

social,demographics,careerlevel,etc.)4. Whospoketothegrouprecently?

Howweretheyreceived?CanIgetcopiesoftheirremarks?

5. Whowerethespeakerswhoaddressedthisgroupmostsuccessfullyinrecenthistory?Whatmadethemsuccessful?

6. HowcanIpersonalizethespeechforthisgroup?Whathumorwillwork?Whatisa“no-no”?

7. Whoaretheopinionleadersinthisgroup?Whichofthemwillbethere?HowdoIreachthem?

8. Whowillintroduceme?Howwillheorshepositionme?WhatnicethingscanIsayabouthimorher?

9. WillIbeexpectedtoanswerquestions?WhatarethekeyquestionsIcananticipate?AnytouchyissuesIshouldbeawareof?

10. Whatmessageswillprovidegenuine“takehome”valueforthisgroup?ShouldIgivethemanyphysical“takehome”?(charts,summaries,etc.)

11. Whoismygroup“insider”whocanhelpmeinspeechdevelopmentandingettingreliablefeedbackonmyperformance?

Quickie18TheBeautyofCash

Ididn’tsaythebeautyofmoney.Isaidcash.Doyourealizewhatarareandbeautifulthingcashis?Therearepeoplemaking$200,000,$300,000,$400,000ayearwhohaven’tseen$1,000incashinthepasttwentyyears.It’sallplastic,checksandnumbersinbankstatements.It’snevercrisp,crunchy,crackly,comely,curvaceous,cold,hardcash.

Well,itisatMackayEnvelope.Wegivecashtooursalespeoplefornewaccounts.Whenwehaveoursalesmeetingswealwaysannouncethenewaccounts,andrightthereonthespotIpayoutapercentageofthevalueofthoseaccountstothesalespeople,incash.

Bytheway,whetherit’scoinorcurrency,makesurethatyourcontrollerorpersonnelofficeristhere(aswedo)totakecarefulnotestoavoidproblemswiththeIRS.

Theplacegetsveryhushed.It’slikeachurchintherewhenIpulloutthosebills.Ialwaysusebrand-new$100bills(MarioPuzo,theauthorofTheGodfather,callsthem“honeybees”).AndIcountthemoff,oneatatime,“one,two,three…”I’mgettingveryproficientatmakinganicesnappingsound.Youshouldseethosepeople.They’reintoxicated.They’readdicted.They’remesmerized.

Inowknowthatoneofthemajorappealsofgamblingisthattheypayincash.Ortaketheultimateformofcash:gold.Owninggoldwasillegalinthiscountrybetween1933and1975.Iknowwhy.Thestuffisreallyhabit-forming!Peopleactnuttyaboutit.I’mgoingtotrypayingoffinthoseAmericaneaglecoinsonceortwiceandseeiftheyallturnintogoldbugs.

Quickie19TheMeaningofLife

Alittlesong

Alittledance

Alittleseltzerdownthepants

—TEDBAXTER’SEULOGYTOCHUCKLESTHECLOWN*

CHAPTERSIX



Thathostilefacestaringbackatyouacrossthedinnertablewillsomedaysoonfinditselfseatedacrossthedeskfromapotentialemployer.

YoumightwanttogivehimorhersomeideaofwhattheworldisreallylikebeforetheydecidetojointheRedGuardsandblowitup.Ican’tpromisethemthatthey’llallbecomemillionaires.Theoddsagainstthataretwohundredtoone.Andthoughthatmightseemlikealongshot,thisisstilltheonlycountrythathasmorethan2millionmillionaires.

I’vehadalotofparentsaskme,“Harvey,you’reasuccessfulbusinessman.You’vebeenaround.IwanttogiveJeffandJaniesomeadvicethatwillincreasetheoddsofsucceeding.WhatshouldIsay?”

Thefirstthingyouhavetorealizeisthatyoucan’ttellthemverymuch.Themoreyougushoutadvice,themoreyou’llsoundlikethatoldairbagPoloniusinHamlet.Besparing,butwhenyoutalk,givethemsomesilverbullets—thingsthatwillreallymakeadifference.Herearesomethoughts:

Don’tPlanonStickingAroundJusttoCollecttheGoldWatch

Tellthemabouttheirfirstjob.Nottheonetheytooktokeepyouofftheirbacksortoearnmoneytobuyacar.Imeantheirfirstrealjob.Theywillbedelighted

ortoearnmoneytobuyacar.Imeantheirfirstrealjob.Theywillbedelightedtobemakingsomuchmoney.Youmusttellthemthetruth.Theyarebeingoverpaid.

Theyareoverpaidbecausetheyknownexttonothingthathasanycommercialvalueandhavetobetrainedandgainsomeexperiencebeforetheycanbeofanyrealvalue.“Ridiculous,”theysay.“I’mworthit.Whywouldtheybepurposelywillingtooverpayme?”Theansweris,theyoverpayyouforthefirsttwoyearsbecausetheyreasonthatonceyouknowwhatyou’redoing,theycanunderpayyouforthenexttwenty,as,ofcourse,theyhaveto.Nocompanycanmakemoneyunlesstheypayoutlessfortheiremployeesthanthey’rechargingfortheemployees’labor.

“Well,then,whydoesanyonestayaround?”theymayask.Becauseifyoucangetthroughthatnexttwentyyearsandgetintoapositionwhereyoureachthetopandhelpruntheplace,you’llgetoverpaidagain.

That’sthepatternofmoderncapitalism.You’reoverpaidwhileyoutrain,underpaidwhileyouwork,butyouhavetheincentivetokeepongettingunderpaidinhopesyouclimbtothetop,whereyoucanwatchotherpeopledotheworkandgetoverpaidagainforafewyears.Obviously,thetrickistoseetoitthatthosemiddleyears,theunderpaidyears,areasfewaspossible.Thewaytodothatistorecognizethatonceyou’vemasteredthejob,it’stimetothinkaboutmovingon,orup.

Ifyou’reworkingforsomeoneelse,assoonasyouknowwhatyou’redoingyou’llbemakingmoneyforthatsomeoneelsethatyoucouldbemakingforyourself.Butifyoudecidetostay,yourrealweaponagainstbeingunderpaidistorealizeyourignorance.Recognizethatyoudon’tknoweverythingabouteverything.Challengeyourself,andmakeyourselflearnsomethingneweverychanceyouget.

Dothatandyou’llbebeatingthesystem.Youremployerwon’tbeablesimplytoprofitoffwhatyou’vealreadylearnedbecauseyou’llbeforcingthatemployertopayyoutolearnsomethingnew,somethingcommerciallyvaluable,everytimeyouwalkintotheoffice.Andbytheway,ifyoutakethatapproach,chancesareyou’llmakeittothetopalotmorequicklythanifyousimplylaybackandusewhatyoualreadyknow.

Wouldyouliketogotoadoctorwhohadtakenhislastmedicalcoursein1948?Unfortunately,therearestillmanyofthemaround,butnine-tenthsof

1948?Unfortunately,therearestillmanyofthemaround,butnine-tenthsoftoday’smedicaltreatments—lasers,CATscanners,pacemakers,chemotherapy,drugs—werealldevelopedsincethe1948doctorgraduatedfrommedschool.Youhavetokeepchangingandkeeplearningsothatyouareconstantlychallengingyourself,addingafewnewsongstoyourprogrameverychanceyouget.Ifyoudon’t,theworldwillpassyouby.Andthat’struewhetheryou’reanemployeeoranemployer.

FindSomethingYouLiketoDoandMakeItPay

ThereisaveryunfortunatewordintheEnglishlanguage.ThenameweusuallygivetoworkisW-O-R-K.Workisn’tworkifyoulikeit,butalotofpeopleseemtothinkthatinordertomakealivingatsomething,youshouldn’treallyenjoydoingit…orwhywouldanyonepayyoutodoit?Notso.Dosomethingyoulike.

Thatsoundssimplerthanitisbecausesomanyofushavehadchildhoodexperiencesinwhichthepeoplewhocontrolledourlivesseemeddeterminedtomakeusdothingswedisliked.Ifthat’swhatourearlylifewaslike,it’snaturaltoassumethat’swhattheworkingworldislike,too.Itisn’t.Theworldisfullofpeoplewhoaredoingwhattheyliketodoandmakingaverygoodlivingatit.Anditisn’tjustpeopleintheglamourbusinesseslikeadvertising,writing,acting,andsavingthewhales.Thetricktolearnisthatifyoulikesomething,youcanmakeitpaynomatterwhatbusinessyou’rein.

Ihappentolikelanguages,andI’vestudiedabouthalfadozenofthem.OneisChinese.Now,thetruthisthatyoucanmakeaverygoodlivinginmybusinesswithoutbeingabletospeakawordofChinese.Butthesuperiortruthisthatyoucanmakeanevenbetterlivingbyapplyingsomethingthatseemsentirelyunrelated,likespeakingChinese,totheenvelopebusiness.Andyoucanhavealotmorefun.

IusedmyChinesespeakingabilitywhenIwenttoChinaasaleaderofabusinessdelegation.Themainevent,infact,wasreportedaroundtheworld.Iwasthefirstpost–WorldWarIIAmericanbusinessmantodeliveraspeechinChineseinthatcountry.ImadecontactswithAmericanbusinessmenonthattripwhostartedtodobusinesswithme,inpartbecausetheyappreciatedmyresourcefulness.Theydidn’tknowanythingabouttheChineselanguage,andtheydidn’tknowanythingaboutenvelopeseither,butapparentlytheyreasoned

thatsomeonewhotookthetroubletolearnthatdifficultlanguagemightbethesortofpersonwhoknewwhathewasdoinginanotherarea—likemanufacturingenvelopes.

SobyspeakingChinese,Iwasabletosellawhaleofalotofenvelopes.That’sputtingruleoneandruletwotogether.Youdon’tstickaroundjusttocollectthegoldwatch.Youkeepchangingandlearning.Andyoufindsomethingyoulikeandmakeitworkforyou—evenifitseemstotallyunrelatedtoyourownbusiness.

MakeBelieveYourParentsAreRightSomeoftheTime

IwasinvitedtoHarvardtoaddressanM.B.A.businessseminarafewyearsago.AfterIhadgivenmyformalspeechtoalargeroomfulofpeople,theyseatedmeatatablewitheightstudentsforagive-and-takesession,thekindinwhichthegroupcanquestionyouverycloselyandgetbehindallthoseglitteringgeneralitiesyouthoughtyougotawaywithduringyourspeech.

Ofcourse,itworksbothways.Whiletheywerewatchingme,Iwaswatchingthem.WhatIobservedwasthateveryoneofthosestudentswas,naturally,superbright.Butoftheeight,thereweresixyoucouldtalkwithandtwowhowereincapableofrationalconversation.Oneofthetwowasbelligerent,andtheotherwouldaskquestionsinsuchacomplicated,convolutedwaythathemightaswellhavebeentalkingquantumphysicsinsteadofbusiness.

Asparentsyouhaveinvestedtime,money,andagonyintryingtogetyourkidstolearnalotofthingstheytotallydislike.“Why,why,whydoIhavetolearntoplaytennis/eatwithafork/wearsocks/studySpanishwhenIamgoingtobeanuclearphysicist/famousrockstar/therichestpersonintheworld?”

Itdoesmatter,andnotjustbecausethere’smoretolifethanwhatyoudoforaliving.Nomatterhowbrightyouareorhowgoodyouareatwhatyoudo,weliveinaneconomybasedonchange.Capitalismconstantlydevoursitsowncreationsandgivesbirthtonewones.

Socialcriticsusedtodescribethebriefcycleofproductsinthemarketplaceas“plannedobsolescence.”TheywouldwagtheirfingersatthosegreedyAmericancorporationsthatwereforeverdiscardingperfectlygoodoldproducts

Americancorporationsthatwereforeverdiscardingperfectlygoodoldproductssotheycouldsellnewonestodocileandnaïvecustomers.

Well,youdon’thearmuchabout“plannedobsolescence”anymore.TheJapaneseprovedthatourproblemwasn’ttoomanynewproducts,buttoomanyold,inefficientones.Andtheconsumersprovedthatthey,notthebloatedcapitalists,decidewhatthey’llbuy—andnoamountofhypewillsellaninferior,obsolete,oroverpricedproduct.

Thatpatternofdestructionandchangenotonlyisrepeatedoverandoveragaininthemarketplace,italsowillbeaninescapablecharacteristicofyourchildren’scareers.

Unlesstheyareabletocommunicate,tomasterthebasicskillsofspeakingandwritinginaforceful,polite,effectiveway,thedayislikelytocomewhenbeinganuclearphysicistoranenvelope-makerwon’tbeenough.That’sbecausenomatterhowsafealittlenichetheymaythinktheyhavefoundforthemselves,inaworldwherecapitalismconstantlydestroysitsowncreations,theirjobswillchange,sowilltheskillsneededtoperformthem,andsowilltheneedforthem.Asaresult,notonlywilltheynotbeabletostickaroundforthegoldwatch,theyalsomayhavetogooutintothehard,cruelworldagainandmarketthemselves.Andunlesstheycancommunicateinanattractivefashion,they’llbeinbig,bigtrouble.

It’sthosebroad,generalistskills,theabilitytocommunicateinwriting,speech,dress,andmanners—allthoseboringthingsparentsandteachershavebeendrivingthemnutsaboutalltheseyears—thatsomedayaregoingtokeepyourkidsindesignerjeansandofftheunemploymentlines.

There’sNoFutureinSayingItCan’tBeDone

Theoldsayingis“Ifitain’tbroke,don’tfixit.”Thepeoplewhomakeitbigaretheoneswhofixitbeforeit’sbroke.Theyforcethecompetitiontoplaycatch-upball.Theymaketheirownrules,andtheothershavetoplaybythem.

TheautomotivecompanyTRWusedtorunanadinTheWallStreetJournalthatsaysitbeautifully.Itshowspicturesofalotofold-timerswithimpressivetitlesofferingtheirsageopinionsonthegreatissuesoftheday.

OneofthemisHarryWarner.HewaspresidentofWarnerBrothersin1927,

atthetimetalkingpictureswerejustcomingonscreen.Mr.Warner’scommentonthistechnologicalbreakthroughwas:“Whothehellwantstohearactorstalk?”Thenthere’sRobertMillikan,NobelPrizewinnerinphysicsin1923.Hesays,“Thereisnolikelihoodmancanevertapthepoweroftheatom.”ThereisthisclassicfromCharlesDuell,headoftheU.S.PatentOffice.In1899hesaid,“Everythingthatcanbeinvented,hasbeeninvented.”IusedtothinkDuell’scommentwasthewhopperofthemall.Maybenot.Intheearly1970s,BillGatesprojected,“Noonewillneedmorethan637kbofmemoryforapersonalcomputer.”Whatdidallfourofthesegentlemenhaveincommon?Theywerecompletelydeadwrong.Theaveragekid’scomputertoday—boughtoffagrocerystoreshelf—islikelytohave40gigabytesoralmost63,000timesthecapacityofGates’souterlimit!EvenGatestheGreatcangetitwrong.

Tellyourkidstotakechances.Thegreatestadvantageyoungpeoplehaveisthatwithoutthefinancialandfamilyencumbrancesofolderpeople,theyhavesolittletolosebytakingrisks.Soencouragethemtotrysomethingnew.Defytheodds.

Theymayfailattimes,buttodoubletheirsuccessrateyoumayhavetodoubletheirfailurerate.Justremember:Thewheelistiltedintheirfavor,thesystemisbiasedontheirside,becauseitisbasedonchange.Ondestroyingtheold.Theyhavealotlesstoloseattemptingtomakeachangethanattemptingtohangontoanoldtechnology,andtothestatusquo,inasystemthatrewardschange.

It’sHardertoBeaSuccessWhenYourParentsAlreadyAre

There’sasayingthatgoes:“It’sthreegenerationsfromshirt-sleevestoshirt-sleeves.”Whatitmeansisthatifyourgrandparentswerepoorandyourparentsbecomerichandsuccessful,it’sacommonoccurrencethatyou—yourgeneration—willstumblebackintothepatternofyourgrandparents.

Why?Foronething,naturehasanimmutablelevelingprocess.Nolife-formkeepsimprovingwitheverygeneration.Breedingisanimperfectscience.Ifyoudon’tthinkso,justlookatthefamiliesofthepresidentsoftheUnitedStates.ThesameparentswhoproducedJimmyCarterproducedBillyCarter.ThesameparentswhogaveusLyndonJohnsongaveusSamJohnson—whomLBJkeptoutofsightintheWhiteHouselivingquarters.AndnottheleastofRichard

Nixon’sproblemswashisbrotherDonald.

Wecangiveourchildrentherightideals,therighteducation,andopendoorsforthem,buttherestisuptothem.Everygenerationfindsitsownleaders,anditseldomusesthelastgenerationforitscastings.

Someyearsago,movieactorKirkDouglasacceptedanawardfromthepeopleinhishometown,Amsterdam,inupstateNewYork.HissonMichaelwasthereandheardhisfathersay,“Iwantyoutoknowitwasaloteasierformetobecomesuccessfulthanitwasformyson.Allmydadeverhadwasapushcart.IfI’dhadtwopushcarts,Iwouldhavebeendoingtwiceaswellashedid.ButMichaelmadeitdespitehavingafamousfather,andthattakessomedoing.”

Yourkidsdon’thavetotoptheoldmanorSupermomtobeasuccess.Iftheywillsettheirowngoals,usetheirownspecialtalentsandabilities,takewhatmeetstheirneedsfromwhatwehaveprovidedforthemanddiscardtherest,theyhavealltheyneedtobeasuccessbyanystandard.

CHAPTERSEVEN

TheCloser:HowtoSucceed

HowtoSucceed

You’vecomealongwaywithme.ThreeHarveyMackayShortCoursesandalargepacketofQuickies.Nowit’stimetodealwiththebigchallenge—gettingallthewaytothetop.AndIhavesomeideasonthatsubject.

Haveyounoticedthatwe’vegottenthisfarwithoutoverworkingtheonewordthatappearsineverybookofthiskind?

Thewordis“determination.”A“howtosucceed”bookwithouttheobligatorydeterminationscenewouldbelikeaWesternwithoutagunfight.

I’vebeenwrestlingwithhowIwouldmeetmydeterminationquotawithoutsettingoffalltheclichéalarms,andIhopeIhavetheanswer.I’mgoingtotellyouacoupleofstories,Mackayfamilylegends,andletyoudecideforyourselfhowimportantthisqualityistoyoursuccess.

AsI’vementionedbefore,myfatherwastheAssociatedPresscorrespondentinSt.Paul,andhewasdamngoodatit.TheGeorgeWillofthatera,H.L.Mencken,hadnothingtofearfrommyfatherasagreatstylist.JackMackay’sgreatestprofessionalattributewashisnoseforagoodstoryandhisindefatigablezealingettingit.

In1932,MinneapolisandSt.Paulwereknownasnotoriousgangsterhangouts.Therewasakindofan“opencity”policyineffect.Atonetimeor

hangouts.Therewasakindofan“opencity”policyineffect.Atonetimeoranother,JohnDillinger,theBarkergang,andAlvin“Creepy”Karpis—allwell-knownmobstersofthatera—livedintheTwinCities,moreorlessunmolestedbythepolice.Inreturn,thegangsterswereexpectedtoconducttheirbusinessfarfromthecitylimitsand,ofcourse,todemonstratetheirgratitudetothelocalauthoritiesinamoreconcretefashion.

Asmightbeexpected,thearrangementbrokedown.TheBarker-KarpisgangkidnappedtwowealthySt.Paulresidents,bankerEdwardBremerandWilliamHamm,awealthybrewer.MyfathercoveredthesubsequenttrialsfortheAssociatedPress.

OnDecember16,1932,aninnocentbystanderwasmurderedduringthecourseofan$118,000Minneapolisbankrobbery.ThecrimewastracedtotheBarker-Karpisgang,andapoliceraidonalocalpokergamenettedseveralcharacters,includingasmall-timethiefnamedLeonardHankins,thoughttobeamemberofthegang.Hankinswasconvictedofthemurderandsentencedtolifeimprisonmentin1933.

By1935,mostoftheBarker-Karpisgangweredeadorinprison.Asthosewhosurvivedsoughtleniencyforthemselvesbypubliclyaccusingeachotherofvariouscrimes,theirstories,dutifullyreportedbymyfather,revealedthatHankinshadnotbeeninvolvedinthebankrobbery/murderandwasnotevenamemberofthegang.

Basedonthisinformation,myfatherpersuadedGovernorFloydOlsontobeginaninvestigation,butOlsondiedbeforehisofficecouldissueareport.HissuccessorlastedonlysixmonthsandlostabruisingelectiontoHaroldStassen,whostartedagainontheHankinscasefromgroundzero.

Bythenitwas1939,sevenyearsafterthebankrobberyandmurder.TheStassenreportorderingHankinsfreedwasissuedtwoyearslater,in1941,butasmydadwrote,“Complicationssetin.Therewasa‘hold’orderonHankinsfora$13robberyofmanyyearsbeforeinPaducah,Kentucky.”KentuckyofficialswantedHankinsextradited.

Minnesotaauthorities,afterholdingamanforeightyearsforamurderofwhichhewasinnocent,werenotgoingtocompoundtheinhumanetreatmentbysendinghimofftoservetimeinasouthernpenitentiaryfora$13crime.HavinglearnedthatKentuckywouldnotacceptanyoneextraditedfromamentalasylum,theyhitupontheunhappysolutionoftransferringHankinstotheSt.

asylum,theyhitupontheunhappysolutionoftransferringHankinstotheSt.PeterStateHospitalfortheCriminallyInsane.

Throughout,DadneverstoppedworkingonthecaseandwritingabouttheinsanityofholdingHankins,whowasperfectlysane,inaninsaneasylum.

ThoughHankinslivedarelativelyuneventfulexistenceandcouldpurchaseafewminorluxurieswiththe$60monthlydisabilitypensionhereceivedfromhisWorldWarIservice,thenationwaspreoccupiedwithWorldWarII,andexceptformyfather’sstoriesandcontinuedpleasforjustice,Hankinswasforgotten.Myfatherpersisted,andfinallyin1949hewasabletogetsomeofficialaction.

ThatyearHankinswascertifiedassaneandwastransferredbacktothestateprison.Therewasanewroundofarticlesbymydad,andthegovernoratthattimewasjuststartingtogetinterestedwhenhewasappointedtoafederaljudgeship.

Finally,in1951,hissuccessor,GovernorC.ElmerAnderson,convenedanextraordinarysessionofthestatepardonboard,thefirstofitskindinthestate,toheartheHankinscase.Twohoursbeforethehearing,thepardonboardreceivedofficialwordthatthestateofKentuckywas“nolongerinterested”inLeonardHankins.

Mydad,whohadstuckwithHankinsthroughout,hisonlyadvocate,usuallyhisonlyvisitoronChristmasandThanksgiving,testifiedatthehearing.

Aftereighteenlongyears,teninamentalinstitution,Hankinswasfreedforacrimehedidnotcommit.

Hankins’srewardwashisfreedom.JackMackay’swasthe“PallMallBigStoryAward,”inwhichanationalradioprogrampresentedtheawardforoutstandingworkbyajournalist.HealsoreceivedalifetimesupplyofPallMallcigarettes.Sincehehad,inhiswords,“stoppedsmokingattheageofeight”afterthetraditionalfirstcigarettebehindthegarage,hehadnouseforhiswinnings.

ThatwasJackMackay.Determinationandheart.

Here’sanotherexample…

Duringtheearly1930s,GovernorOlsonofMinnesotawasanationalfigure.Ifhe’dhadacryptobiographerasgiftedasRobertPennWarren,authorofAlltheKing’sMen,itwouldhavebeenOlsonaswellasHueyLongimmortalizedasthequintessentialdepression-erapopulistgovernor-cum-presidentialaspirant.

Inthesummerof1935,OlsonlaydyingofcancerintheMayoClinicinRochester,Minnesota.Adeathwatchhaddevelopedamongreporters,andacompetitionsprangupamongthemastowhowouldbefirsttohavethestory.

MyfatherhadpositionedhimselfinthestreetoutsideOlson’shospitalwindowandhadtippedOlson’snurseafewdollarstolowertheshadeinanadjoiningroomwhenOlsonsuccumbed.

Becausethehospitalwouldnotletthereportersusehospitalphonestocallintheirstories,andsincepayphonesweremuchrarerthantheyaretoday,myfatheralsohadgivenaboyaquartertoholdaphoneforhimatacornergrocerystoreacoupleofblocksaway.

Olsondied,theshadecamedown,andmyfatherbeganhisruntothegrocerystore.Justashewascrossingthelaststreet,withallhisconcentrationfocusedonthenationalwireservicestoryhewouldbereportinginthenextfewminutes,hewashitbyatruck.Hegotup,dustedhimselfoff,limpedtothephone,calledinhisstory,andonlythenforcedhimselftolimpbacktothehospitalandcheckin.JackMackayhadhisscoop.

Itwasnowtwenty-eightyearslaterandIhappenedtobetwenty-eightyearsold.Ihadownedmyownbusinessforthreeyears,andIwaslookingformortgagemoneytobuildanew$200,000manufacturingplant.Iwenttothirteendifferentlendinginstitutions,everybankandmortgagecompanyintheTwinCities.Ihadthedoorslammedinmyfacethirteentimes.

ThenItookamapandadimestorecompass,thekindyouusetodrawcircles,andmadeathree-inchcirclewithMinneapolisinthecenter.Istartedcallingonbanksandmortgagecompanieswithinthecircle.Moredoorslams.Ikeptdrawingcircles.FinallyIdrewacirclebigenoughtocoverMilwaukee,andthat’swhereIgotmymortgagemoney.

Determination?Inmyfather’scase,I’msurehethoughthewasdoinghisjobandhadgottenslammedtothepavementbecausehehadgottencareless.InmycaseIdidn’tregarditasanythingmorethansoundbusinesspractice.I’dstill

bedrawingcirclestodayifIhadn’tconnected.Thedifferencebetweenowningmyownlandandfactoryandhavingsomeoneelseputupthebuildingandrentittomeamountedto$1million.

Butevenwiththatkindofmoneyatstake,you’dbesurprisedhowmanybusinesspeoplewillthrowinthetowel.Orliedownonthecurb.Don’tyoubeoneofthem.

Thereisamagicformulaforsuccess.It’sveryeasytoexplainbutdifficulttoexecute.Thoughweallpossessindividualcharacteristicsthatmakeeachofusunique,IbelieveI’veseenenoughsuccessfulpeoplesothatIcanidentifythosesharedcharacteristicsthatmakesuccessfulpeoplesuccessful.

Determination+Goal-Setting+Concentration=Success

GaryPlayerisaSouthAfricangolfer,winnerofdozensoftournaments,includingtheU.S.Open,Masters,BritishOpen,andPGA.InadditiontowinningtheMastersthreetimes,heistheonlytwentieth-centuryplayertowintheBritishOpeninthreedifferentdecades.Duringthe1980sand1990s,Garydidn’tslowdownabit—winningnineseniormajorchampionships.He’sagoodathlete,butsoiseveryoneelseonthetour.Playerhashadsomeunusualobstaclestoovercome.He’sfivefeet,sixinchestall,notexactlyatoweringfigureonthelinks.He’shadmajorhealthproblems.Duringthe1960s,heplayedgolfwhilefourbodyguardsstoodaroundhim.SouthAfrica’sracialpolicieshadmadePlayertheobjectofthreatsanduglyincidents.

ImetPlayerin1955onapracticeroundthedaybeforetheSt.PaulOpen,whichwasanimportanttournamentinthosedays.Playerwasanunknownprofessional,andIwasanunknownamateur.ItwasPlayer’sfirstyearontheU.S.tour,andIhadjustgraduatedfromtheUniversityofMinnesota,whereIhadwonmyvarsityletteringolf,andhadn’tyetbeentalkedoutofplayingprofessionally.

Wehititoffimmediately.Sincewewereinmyhometownandwewerebothaboutthesameage,Iofferedtoshowhimthesightsthatevening,suchastheywere.Withaboutahalfdozenotheryoungpeople,wewentoffintothenightandhadawonderfultime.Thenextday,althoughmyteetimewasintheafternoonandPlayer’swasinthemorning,Iwassoenthusiasticaboutmynewfriend,Idecidedtowalkwithhimonhisround.Hehadjustteedoffonthefirst

friend,Idecidedtowalkwithhimonhisround.Hehadjustteedoffonthefirstholeandwasheadingdownthefair-waywhenIreachedhim.Thecoursewasempty.NogalleriesfollowedGaryPlayerin1955.

“Gary,howyoudoin’there?Didn’twehaveagreattimelastnight?”Iasked.

Hedidn’tbreakstride.Hedidn’tturnhishead.Hiseyesstayedfocusedonthehorizon.Hehadblinderson.Hisresponsecouldhavebeenetchedinstone.

“Harvey,Ican’ttalktoyou.Imustconcentrate.I’llseeyouwhenIfinish.”

Icrawledbackuptotheclubhouse,devastated.

In1985IranintoPlayer,methiswife,andtoldthemthestory.Shelaughed.

“Don’tfeelbad,Harvey.Actually,hewasratherforthcomingwithyou.Hewon’tevenacknowledgemyexistencewhenhe’sonthegolfcourse.”

Determination.Goal-setting.Concentration.Alltheclichéwords.Buttheclichésaretrue.That’swhatmakesawinneroutofGaryPlayer,whiletherestofusremainduffers,whetheratgolforinlife.

Perhapsasyoureadthisstory,yousaytoyourself,“Well,Icandothat.Icanbejustassingle-mindedandcommittedasGaryPlayer.”Iputtheoddsatninetoonethatyoucan’t.Letmetellyouwhy.

Duringtheseven-yearefforttobuildthenewdomedstadiumindowntownMinneapolis,Imadehundredsofspeechesonbehalfoftheproject.IalwaysendedmypitchbyaskingtheaudienceforashowofhandstoindicatehowmanycaredenoughaboutkeepingtheTwinsandVikingsinourcommunitytowritetheirstatesenatorsorrepresentatives.Over90percentoftheaudiencealwaysraisedtheirhands.“Great,”Isaid.“Ijustwanttoaskonemorething:Mailmeacopyoftheletter.”Inevergotmorethan10percent.

Determination?Goal-setting?Concentration?Weallthinkwehavethem.Butthetruthis,wedon’t.I’vewrittenthisbooktohelpyoujointhat10percentclub.It’snotexclusive.Youjusthavetoworktojoinit.

PeterUeberroth,thesonofanitinerantaluminum-sidingsalesman,builtoneofthefinesttravelcompaniesintheUnitedStatesandwasnamedTime’sManof

theYearinJanuary1985.

ImetUeberrothinthemid-1960swhenhewaselectedtomembershipintheYoungPresidents’Organization.TheYPOisanationalbusinessorganizationmadeupofpresidents,underagefifty,ofcompanieswithoverseventy-fiveemployeesand$5millioninsales.Hewasanancientthirty.Ihadbecomeamemberayearearlier.

Ueberroth’ssenseofself-disciplineissopowerfulthathecanbarelystanditwhenhedoesn’tfindthesamequalityinothers.Ifheseesanemployeespeakingwithahandoverhismouth,hehasbeenknowntoreachoutandbrushitaway.Henotonlyhasinsistedthathisemployeeswearcoatsandtiesatalltimes,healsohasinsistedtheygetnewonesifhefeltthecoatsandtieswereshabby.Andunlikemostotherclean-desktyrants,Ueberrothenclosesacheckforthenewclotheswiththeadmonition.

Determination?Goal-setting?Concentration?Youbet.AndUeberrothhastakenitastepfartherthanPlayer.Ueberrothisaleaderaswellasanentrepreneur.Hesetsthestyleforothersaswellasforhimself.

Throughhisefforts,thetwenty-thirdOlympicGames,unlikethetwenty-twothatprecededit,notonlyshowedaprofit,thatprofitwas$215million.Andattheclosingceremoniestherewasanevenmoreunprecedentedevent.TheygaveUeberrothastandingovation.I’vebeentoalotofsportingeventsinmylife,butthatwasthefirsttimeI’veeverseeneighty-fourthousandpeoplerisetotheirfeettocheerthepersonwhosoldthemtheticket.

Notlongbeforehisdeath,ForbesestimatedthenetworthofCurtCarlsonataround$1.6billion.Hewastherichestmaninmystate.Hestartedwithnothing,sellingpremiumstampstogrocersduringtheGreatDepression,andbuiltaworldwideconglomerateinhospitalitytravelandmarketingwithsalesofover$4billionannuallyby1988.AswithGaryPlayerandPeterUeberroth,workingwithCurtwasnotalwaysadayatthebeach.Hewasknowntochewouthissubordinateslavishly.Curtneverheldbackanything.Ifyouweretohaveputthethreeofthem—Player,Ueberroth,andCarlson—inaroomtogether,giventhemeachanax,andturnedoutthelights,IhavenodoubtthatitwouldhavebeenCurtwhowalkedoutofthatroom—withthreeaxes.

Curt’sextradimensionwashisvision.Hewasabsolutelyfearlesswhenitcametobackinghisownjudgment.Andheworenoone’sharness.Curtwanted

cametobackinghisownjudgment.Andheworenoone’sharness.Curtwantednothingtodowithshareholders,partners,orco-owners.Itwasallornothing.Eventhoughheoccasionallysoldoffbitsandpiecesofhisbusiness,youwouldn’tfindtheCarlsonCompaniesonanyexchange.Ifitmeanthehadtogenerateallhisowncapitalinternally,sobeit.Curtchosetogoitalone.

Why?Itisbecausehefelthisjudgmentwasbetterthanthatofhispotentialshareholders,partners,andco-owners,andhedidn’twantthemholdinghimback.DuringtheCarteradministration,whentheUnitedStatesunderwentasavagerecession,Curtshockedmebysayinghedidn’tgiveadamnwhattheeconomydidthatyear,orthenext,asfarashisbusinesswasconcerned.Depression,recession,hecouldn’tcarelessabouttheshortterm.Asusual,thestrongwouldgetstrongerandtheweakwouldgetweaker,andcomewhatmay,hissales,whichwerethenalittleover$1billion,wouldbe$4billionby1987.

“Youdon’tsay‘whoa’inahorserace,”saidCurt.Hehadbeeninahorseracehisentirelife,mostly—becausehehadlefthiscompetitioninthedust—withhimself.Hebeathisowndeadlinebytwelvemonthsand1987saleswere$4billion.Thenhisgoalwas$5billion.Whenhedied,thecompanywasreachingtowardthe$6billionleague.MarilynCarlsonNelson,Curt’sextremelyabledaughterandtheorganization’schiefexecutiveofficer,hascarriedthestellarCurtCarlsontraditionforward.Infact,ifyouaddtogethersalesfromallglobal,company-owned,andfranchisedoperations,salestotaled$20.9billion.Andthisisaprivatecompany.

IthinkthestorythatcaptureshimbestformetookplacethedayMinnesotawashitwiththeworstblizzardinfiftyyears.Minneapolis–St.PaulInternationalAirport,whichisusedtodealingwiththeworstoftheworstinweather,wasclosedforthefirsttimeever.IhadscheduledameetinginNewYorkweeksearlier,andCurtwasgoingthereatthesametimeandhadofferedmearideinhisjet.Ourprospectsofgettingoutoftownseemedextremelyslim.Finally,thoughthestormwasstillpummelingus,theairportinexplicablyprovidedashortgraceperiodandwasopenedforsmallercraftonly.Frankly,bythattimeIwasn’tallthatkeenonthumbingmynoseattheMinnesotaweathergods,butCurtdidn’tseematallconcerned.Asweweretaxiingdowntherunwaytotakeoff,Curtturnedtomeandsaidgleefully,“Look,Harvey,notracksinthesnow!”

CurtCarlson,seventyyearsold,richbeyonddreamsofavarice,couldstillsparklewithexcitementaboutbeingfirst…nomattertherisk.

NohumanendeavorwithaGaryPlayeroraPeterUeberrothoraCurt

NohumanendeavorwithaGaryPlayeroraPeterUeberrothoraCurtCarlsoninchargewillfail.ButIhaveseenbusinessafterbusinessgointhetankbecauseownerstooktheirsuccessesforgranted.

WhenIwasakid,atickettoaUniversityofMinnesotafootballgamewasthehottestitemintown.Andtheathleticdepartmentknewit.Theuniversity’sathleticdirectorsneeredatthepoorpeoplewhocouldn’tgetticketstotheGophergames.Thephoneswereneveranswered,thelineswerelong,andthesmilesandthankyouswerefew.Theyevencombedtheobituariesforthenamesofseasonticketholders.UniversityofMinnesotacancellationnoticesreachedthehomesofthebereavedaboutthesametimeascondolencenotes.

Whenmajor-leagueprofessionalsportsarrivedintheTwinCitiesintheearly1960s,thechickenscamehometoroost.Theresultsofalltheillwilltheuniversityhadgeneratedovertheyearswererealized.Thepublicflockedtothepros,andfortwenty-fiveyears,untilLouHoltzarrived,Gopherfootballwasaboutaspopularasjockitch.

Nocompanyhasapermanentconsumerfranchise.Noonehastheonlygameintown.Thenever-endingcycleofdestructionandchangeinherentinacapitalisteconomyalwaysprovidesnewopportunitiesforthosewithdetermination,goals,andconcentration.

AslongasourworldcanproducepeoplelikeGaryPlayer,PeterUeberroth,andCurtCarlson,youhaveasgoodachanceastheydidtogoallthewaytothetop.

Youdon’tlearntoswimwiththesharksinasingleouting.High-stakeschallengesdemandpracticeandperseverance.Thisbookwaswrittentohelpyounavigatelife’sriskywatersmoresafelyandprosperously.MygoalinthisupdatedversionofSwimwiththeSharksistoprovidetoday’sreaderswithsomeupdatedconceptsandmessages,whilestayingtruetotheessenceofabooksomanyreadersfounduseful.I’vealsomentionedjustafewnamesonanemergingslateofrolemodels.I’llbetthatseveralreadersofthisbookwillbeonthatrosteroffuturelegends.Ifyouhavethewillandthespirit,whyshouldn’tyoubeoneofthem?

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W.T.Grant

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ABOUTTHEAUTHOR

HarveyMackayisauthoroffourNewYorkTimesbestsellers.Hisfirsttwobooks—SwimwiththeSharksWithoutBeingEatenAliveandBewaretheNakedManWhoOffersYouHisShirt—wereNewYorkTimesNo.bestsellersandarealsolistedbytheNewYorkTimesamongthetopfifteeninspirationalbusinessbooksofalltime.

DigYourWellBeforeYou’reThirsty(1997)andPushingtheEnvelope(1999)bothcrackedtheNewYorkTimestop-tenlist.JustreleasedatthetimeofthisprintingwasWeGotFired!…AndIt’stheBestThingThatEverHappenedtoUs—abookheadedforthesameloftypopularityasitspredecessors.Hisbookshavesoldmorethantenmillioncopiesworldwide,beentranslatedintothirty-fivelanguages,anddistributedineightycountries.

Harvey is a nationally syndicated columnist forUnited Feature Syndicate; hisweekly articles appear inmorethanfiftynewspapersaroundthecountry.HealsoisoneofAmerica’smostpopularandentertainingbusiness speakers, having been named one of the top five speakers in the world by ToastmastersInternational.

He is chairmanand founderofMackayEnvelopeCompany, a$100million companyhe founded at agetwenty-six.InApril2004,HarveyreceivedtheprestigiousHoratioAlgerAward.

He lives nearMinneapoliswith hiswife of forty-four years, CarolAnn. They have three children, ninegrandchildren,twodogs,andonecat.

Visitwww.AuthorTracker.comforexclusiveinformationonyourfavoriteHarperCollinsauthor.

MorepraiseforSwimwiththeSharksWithoutBeingEatenAlive

“HarveyMackaymaybethemosttalentedmanIhavemet.”

—LouHoltz

“OnceIstartedtofollowHarveyMackay’slessons,Icouldn’tstopreadingthebook.Eachlessonisclear,tothepoint,andrighton.ThiswillbecomemandatoryreadingforallEsteeLauderexecutives.We’llthenbeabletoswimaheadofthepack.”

—LeonardLauderPresidentandCEOEsteeLauder,Inc.

“HarveyMackay’s raw enthusiasm is a refreshing contrast to the so-called bottom-linementality of somany American business managers today. It is to be hoped that, in the long run, Harvey’s brand ofpositivismwillcarry.”

—RobertRedford

“Harvey has a knack for expressing some very profound and important notions in an amusing andinterestingway.Seriousstudentsofmanagementandleadershipcanlearnalotbystudyingthisbook.”

—HarveyGolubPresidentandCEOIDSFinancialServices,Inc.

“Givinggoodadviceisatleastashardtodoastakingit,butHarveyMackayhassucceededinboth.Hispungentwritingcapturesgoodideaswhichareeminentlysensibleandbeautifullysensitive;heprovidesasuccession of delightfulmoments as hegently leads his reader to realize, ‘But of course!Howobvious!That’sjustwhatIbelieve!’—themarkofanexcellentteacher.”

—RoyMenninger,M.D.PresidentTheMenningerFoundation

“ToreadHarveyMackay’s‘CookbookforSuccess’istoknowHarvey.He’llsharewithyoueverythinghe

knows—andIwouldn’thesitateaminuteintakinghisadvice.”

—CharlesSchwabChairmanandCEOCharlesSchwab&Co.,Inc.

“HarveyMackay’sbookputssuccesswithinreachofanyonewillingtolearntherules—andplaybythem.”

—FranTarkenton

“Beautifullywritten,witty,riveting…ThebestbookaboutachievingyourgoalssinceDaleCarnegiewrotehismasterpiece.”

—WarrenBennisCoauthorofLeaders

ByHarveyMackay

SwimwiththeSharksWithoutBeingEatenAlive

BewaretheNakedManWhoOffersYouHisShirt

Sharkproof:GettheJobYouWant,KeeptheJobYouLove…inToday’sFrenziedJobMarketDigYourWellBeforeYou’reThirsty:TheOnlyNetworkingBookYou’llEverNeedPushingtheEnvelope:Allthe

WaytotheTop

WeGotFired!…AndIt’stheBestThingThatEverHappenedtoUs

Copyright

SWIMWITHTHESHARKSWITHOUTBEINGEATENALIVE.Copyright©1988,2005byHarvey Mackay. All rights reserved under International and Pan-AmericanCopyrightConventions.Bypaymentoftherequiredfees,youhavebeengrantedthe non-exclusive, non-transferable right to access and read the text of this e-book on-screen. No part of this text may be reproduced, transmitted, down-loaded, decompiled, reverse engineered, or stored in or introduced into anyinformationstorageandretrievalsystem,inanyformorbyanymeans,whetherelectronic or mechanical, now known or hereinafter invented, without theexpresswrittenpermissionofHarperCollinse-books.

EPub©EditionAUGUST2007ISBN:9780061755057

10987654321

AboutthePublisher

AustraliaHarperCollinsPublishers(Australia)Pty.Ltd.25RydeRoad(POBox321)Pymble,NSW2073,Australiahttp://www.harpercollinsebooks.com.auCanadaHarperCollinsPublishersLtd.2BloorStreetEast-20thFloorToronto,ON,M4W1A8,Canadahttp://www.harpercollinsebooks.caNewZealandHarperCollinsPublishers(NewZealand)LimitedP.O.Box1Auckland,NewZealandhttp://www.harpercollinsebooks.co.nzUnitedKingdomHarperCollinsPublishersLtd.77-85FulhamPalaceRoadLondon,W68JB,UKhttp://www.harpercollinsebooks.co.ukUnitedStatesHarperCollinsPublishersInc.10East53rdStreetNewYork,NY10022http://www.harpercollinsebooks.com

*TedBaxterwasaroleplayedbyTedKnight(along-standingfriendofmine)ontheCBSsitcomTheMaryTylerMooreShow.Theshowwasaboutafictionallocaltelevisionstation.ItwassetinMinneapolis,airedforsevenyearsduringthe1970s,andwasagreatsuccess.ChucklestheClownwassupposedlythestarofoneofthestation’sprograms.YouneversawChucklesonscreen,butonedayhesupposedlydressesupasapeanutandistrampledtodeathinaparadebyanelephant.TedBaxter,ahaplesslocalnewsanchorman,deliveredtheunforgettableeulogy.

Swim with the sharks without being eaten alive

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