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
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.
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
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.
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.
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.”
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.
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
HelpingYourKidsBeattheOdds
HelpingYourKidsBeattheOdds
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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SeealsoTwinCitiesMinnesotaColorEnvelopeCompanyMinnesotaGophers(collegefootball)MinnesotaTwins(baseball)
MinnesotaVikings(football)Mitchell,ScottMolotov,VyacheslavMondale,Walter
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ontelephoneunderstandingcustomer’s
personalnetworking.SeenetworkingpersonalrecognitionpessimismPeterson,PetePhillips,JayphoneusePincay,LaffitplannedobsolescencePlayer,GarypocketdictatingunitPohlad,Carlpositionpaperspracticepredictionsprejudicepresidents,U.S.pressurepricing
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Web.SeeInternetWellsFargoWestEdmontonMall(Alberta)Westmoreland,WilliamWexner,LeslieH.Whitman,MegWhitman,WaltWhitney,WheelockwholesalenetworkingWilkinson,BudWilson,GeorgeWilson,KemmonsWindows98(operatingsystem)winnersWoolworth“worddinks,”work.SeealsojobworkaholicsWorldComWorldSeriesWorldWideWeb.SeeInternetworth,establishmentofwriting
offactsaboutcustomersofitemstoremember
ofitemstorememberofnegotiationagreementsofnotestocustomersofpredictions
W.T.Grant
YoungPresidents’Organization(YPO)Zadora,PiaZayre
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.
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