Latest / The Relentless Pursuit of Winning Podcast / Stop Being the Bottleneck: How to Delegate Effectively and Reclaim Your Freedom | John Nieuwenburg
Transcript
- 0:0085% of what happens in a business ought to be routine.
- 0:03Here's the system, here's the SOP,
- 0:05this is how we do it.
- 0:05Mm-hmm.
- 0:0615% of the time stuff happens,
- 0:08we don't look for a people solution,
- 0:10we look for a system solution.
- 0:12You didn't start this business to get wrapped around the axle.
- 0:15You did start it because you wanted some form of freedom,
- 0:18time freedom, money freedom, freedom to make choices on your own terms.
- 0:22Mm, yes.
- 0:22The results
- 0:23you get in life are a perfect reflection of how you spend your time.
- 0:26Do you have a default diary?
- 0:28We think we have to be available.
- 0:30And the truth is you shouldn't be available.
- 0:31You should be accessible.
- 0:32Mm.
- 0:33And the difference is accessible means on your terms,
- 0:36when it's right
- 0:36Mm-hmm.
- 0:37for you.
- 0:53Hey folks, thank you for watching or listening to another episode
- 0:56of the Relentless Pursuit of Winning Podcast.
- 0:58My name is Rick Meekins. I am your host today,
- 1:00and in our studio we have John Nieuwenburg.
- 1:03How are you today, sir?
- 1:04I'm terrific. Thanks for having me.
- 1:06absolutely. This is gonna be a fantastic show,
- 1:08folks. It's gonna be a fantastic show.
- 1:10Before we get started though, if you haven't done it,
- 1:12we would be honored if you'd like,
- 1:14subscribe, and hit the bell so you can get updates every time we drop a new episode.
- 1:18And without further ado, let's get to it.
- 1:20So John, give our audience a little bit a little bit of a background,
- 1:23who you are, what you do, and why you do what you do.
- 1:25Well, I'm a business coach. I started as a business coach in two thousand and four.
- 1:29So twenty two years worked with four hundred and fifty clients.
- 1:33small business owners typically in the trades or professions.
- 1:36one way I could answer your question is when I started as a coach
- 1:39in two thousand and four, shortly after I had an epiphany.
- 1:42It was Steve Jobs who said you can only connect the dots going backwards.
- 1:46And my epiphany was some dots I connected,
- 1:48and I realized, my gosh, I've always been a coach.
- 1:51So let me describe just three of them.
- 1:53the first of which is I'm the eldest of eight children.
- 1:57You can imagine the role you're cast into when you're the eldest of eight.
- 2:01hardwired to be a teacher, and I knew that in high school.
- 2:04but in those days that meant wearing a Harris tweed coat with elbow patches and
- 2:08That sort of bureaucratic
- 2:09Mm-hmm.
- 2:09institutional style of teaching didn't appeal to me very much.
- 2:13In the early 80s, I was blessed to learn something called the Socratic method
- 2:17of leadership. So Socrates had it the best way to help somebody is
- 2:20to help them figure it out for themselves.
- 2:22And in essence, that's at its core what coaching is.
- 2:25And so I've been practicing a coaching style of leadership since the early 80s.
- 2:30Mm, mm. Was is there is there a why behind it or is it just this is what
- 2:34you were born to do?
- 2:35This what I'm born to do. this little symbol i is kind of representative
- 2:39of that idea that I was born to help other people.
- 2:42And even at the age of about fourteen,
- 2:45I was collecting my brothers and sisters' library cards and going
- 2:48to the library three mile on a bicycle,
- 2:51pick age appropriate kinds of books,
- 2:53and and three weeks later when it was due,
- 2:55I would do the same thing and no one ever asked me.
- 2:58It's just I'm wired that way.
- 2:59Mm, mm-hmm. I love it. I love it.
- 3:01And what what what led up to you,
- 3:03I guess professionally, what led up to you becoming a coach?
- 3:06Well, I was the president of a very large retailer,
- 3:10about four billion in sales, two hundred locations,
- 3:13four thousand full timers. and I decided I wanted to do my own thing.
- 3:17And for a while I did a lot of retail consulting with some national brands.
- 3:21I'd usually step in and and get something solved for them.
- 3:24And that was a three or six or sometimes nine month kind of project.
- 3:28And
- 3:28What I discovered is that's a very difficult business model.
- 3:31You're like you're working real hard against something and six months go
- 3:34by and the gig's over and you're like out on the street.
- 3:37And by coincidence, I went to a trade show or a c a conference and there
- 3:43was a booth with business coaching and I thought,
- 3:46well, I'll go and chat with these guys.
- 3:48And of course that was the door opening that led ultimately to becoming a coach and
- 3:52Quite by accident, discovering what my purpose in life is.
- 3:56Mm mm. That's that's I like that.
- 3:58I love that. I love that. That that epiphany moment you mentioned.
- 4:01What is what is a coach and what would one expect from a coach when when bringing
- 4:07one
- 4:07in?
- 4:07Wow. Well that's it depends who you ask is the short version.
- 4:11And what I mean by that is that if you go to,
- 4:14you know, some of the coaching academies,
- 4:16they'll tell you a coach is kind of a business version of a therapist
- 4:20or a counselor. We ask questions,
- 4:22we help people uncover, they discover the answer for themselves,
- 4:26and that's part of what coaching is,
- 4:28but I think it's broader than that.
- 4:30I have
- 4:30Mm-hmm.
- 4:30some gray hair, so it's about being a mentor and an advisor.
- 4:34Sometimes it's a teacher and sometimes it's,
- 4:36let me kick you in the backside because you need to do something.
- 4:39So ~ it's
- 4:39Mm-hmm.
- 4:41it's a blend of all those things.
- 4:43coaching is really about helping the business grow,
- 4:46systems tools and strategy in business.
- 4:47It's about helping the owner grow mindset,
- 4:50communication leadership, delegation skills.
- 4:53And the third
- 4:53Mm.
- 4:54is performance or holding you accountable for the stuff you say they're gonna do.
- 4:58So
- 4:58That's my two second
- 4:58Mm.
- 5:00rant on what's a coach.
- 5:01What's what's a what's a what was a great great project that you worked
- 5:04on that just you know you always go back to and say,
- 5:07you know what, this this was this was a great project.
- 5:09This was a company, a leader that,
- 5:12you know, was really struggling and you know,
- 5:14now they've got a very successful company.
- 5:15Well, the one that
- 5:16Or sold their company.
- 5:17sticks out for me is a client named Fred.
- 5:21Fred owned a factory, two shifts.
- 5:23Started at six in the morning and ended ten at night.
- 5:26And he was very much a hub and spoke manager.
- 5:29So let me take a minute to explain what that is.
- 5:31So if you think of a bicycle wheel,
- 5:33it's got a hub, and the wheel is supported by the spokes.
- 5:37Mm-hmm.
- 5:37~ if you take the hub out, what happens to that wheel?
- 5:40Flattens.
- 5:41It falls apart.
- 5:42He was that
- 5:42Yep.
- 5:43kind of a leader. Nothing happened unless someone made a call or hey,
- 5:47got a minute, or rings, pings,
- 5:49and dings. And so he had an hour's drive to to the factory.
- 5:53so he'd leave it around 10 o'clock and get home at 11 and then had to be
- 5:57on the road like at 4:30 or 5 to get back to the to the factory.
- 6:00And he did this for like 10 years,
- 6:02just relentless, stubborn guy,
- 6:04persistent guy. I'm gonna do what it takes,
- 6:05kind of guy. And he would have paid that price for some time,
- 6:09but at one point.
- 6:10Along that way, his wife said to him one day,
- 6:13Your business is your mistress.
- 6:15If you don't do something about it,
- 6:17I will. That's when Fred had an epiphany because he was prepared to pay
- 6:21the price of 80-hour weeks, but he was not prepared to pay that price.
- 6:23Mm-hmm. Yeah.
- 6:25And that's
- 6:26the important thing. we're often prepared to do the things it takes in the work.
- 6:31but when it has some consequence,
- 6:33emotional or personal consequence,
- 6:35that's when we realize, gosh, I need to get some help because what I'm doing
- 6:39is not working and it's become important enough to me.
- 6:41I'm not going to my kids' games.
- 6:43I'm not there fully present for my family.
- 6:46my health is at risk sometimes.
- 6:49it's some aspect of their personal their life that ultimately drives people to say,
- 6:54you know what, I need some help because I can't figure this out.
- 6:57By myself.
- 6:58Yeah, yeah. How how did he how did he end up what was the resolution
- 7:01for that project?
- 7:02Well, we worked at it for some time,
- 7:04but he got to a place where he recognized that what he needed to become
- 7:08is what I call the leader owner.
- 7:10So he was an operator owner. He was the hub.
- 7:13And the
- 7:13Mm-hmm.
- 7:14leader owner has a different mindset.
- 7:16What they recognize is everything that the business has to do has to
- 7:20be done by someone else. It cannot be me.
- 7:23My job is to lead those people who do the doing of the doing.
- 7:27So
- 7:27Mm.
- 7:28that's a
- 7:29the hub and spoke guy gets a big juice out of it,
- 7:31right? you're important and you're getting these endorphins and the rings,
- 7:34pings, and dings. and what happens when you become a leader owner
- 7:38is the environment is different.
- 7:39It's quiet. And you're able,
- 7:40Mm. Mm. That's a that's a complete mindset.
- 7:42yeah. and instead of being the product of the environment
- 7:47The tail wagging the dog, you now get to a place where you get to work
- 7:51on things that are important but not urgent.
- 7:54the building the business or introducing something that'll save money
- 7:59or produce more money. And that's a hard thing for for an owner to make that shift
- 8:04to recognize they're actually doing more valuable work,
- 8:07even if it doesn't feel quite as pressing or urgent or doesn't have
- 8:11all that all those endorphins attached to it.
- 8:14And so you're right, it's a skills question,
- 8:16planning question. but more than anything before it happens is a shift in mindset,
- 8:21how you identify what you think your job is.
- 8:24You're not the doer anymore, you're the leader,
- 8:26and that's a different set of skills.
- 8:28And you know, I was working with a guy in a different practice,
- 8:32he was a PhD.
- 8:32And what he came to understand is it took me a long time to get that PhD,
- 8:36but I did not get a single hour's worth of business training.
- 8:40And I'm really good at my practice.
- 8:42I'm really good as a lawyer. And of course I'm
- 8:44Mm.
- 8:45not gonna help you be a better lawyer,
- 8:46but that's not where you need help.
- 8:48You need help understanding how to run a better business.
- 8:51Mm mm. It's interesting talking
- 8:52And that's the
- 8:53about talking about like a person that has a specific profession or skill.
- 8:57You know, they start the business with their skill or with their trade
- 9:01and then suddenly they're not in that role anymore.
- 9:03You know, there's a re identification.
- 9:04Yeah, so
- 9:06yeah, so they usually start as what I call the technician owner.
- 9:09So they're still very much on the tools.
- 9:11And, maybe there's another truck and they've got two guys and and a helper
- 9:15and that kind of thing, but they're still very much on the tools.
- 9:18and they're doing payroll on, you know,
- 9:20Friday at eight o'clock 'cause it has to get out the door and and then they
- 9:24go from two trucks to ten trucks.
- 9:26And now, my gosh, they're at the hub of everything and
- 9:29The thing they haven't learned is what happens when you go from three people
- 9:34to ten people and what breaks.
- 9:35And the story I like to tell about that is how many handshakes does
- 9:39it take for three people to shake each other's hands?
- 9:42the answer to that is three. So a and b,
- 9:45b and c, a and c. So three three handshakes,
- 9:48everyone does two. So there's a formula for this.
- 9:50three times three is nine, less three is six divided by two is three.
- 9:54X squared less X divided by
- 9:56So let's make it 10 people. So 10 times 10 is 100,
- 9:59less 10 is 90 divided by 2 is 45.
- 10:01What's happened? Well, the group grew by a factor of three.
- 10:04Complexity grew by a factor of 15.
- 10:07And you're still trying to run the place as if it was just three people.
- 10:10And when worked at three people,
- 10:12it doesn't work anymore at 10 people.
- 10:14And first of all, you got to see that.
- 10:16You got to recognize, you got to,
- 10:17my gosh. And then you got to know what to do about it.
- 10:20Yeah.
- 10:21And if I may, what what has to happen is with three people,
- 10:24we rely on personal trust. I can trust you.
- 10:27I know what you're gonna do. I saw what you did yesterday.
- 10:30When it gets to ten people, we have to start shifting and thinking about
- 10:34it as structural trust. So what's structural trust?
- 10:37We're relying on systems, processes,
- 10:40protocols. So let me give you a simple example.
- 10:42How does the air traffic controller know that the pilot's done everything necessary?
- 10:46To make sure the plane is ready to take off and they've never met.
- 10:49They can't trust each other. Well,
- 10:50Mm. Right. Right.
- 10:53they've replaced personal trust with structural trust.
- 10:57So what's that? Well, each of them three,
- 10:59five, ten years of training, they've passed some kind of board exam.
- 11:03Each of them know that there's protocols,
- 11:05you know, checklists and SOPs,
- 11:07and and if each follows their
- 11:09Respective protocol, each can trust that the system will produce the right outcome.
- 11:14Or I'll
- 11:14Mm-hmm.
- 11:15put it in a more personal way.
- 11:16Hey, would you get on an airplane if you knew the pilot didn't
- 11:19do the pre-flight checklist? Would you do that?
- 11:21Mm-hmm.
- 11:22Of course not. No one would. And so that's the shift that I have
- 11:26to create a structure or a system that everyone can then follow,
- 11:31which then ensures that we get the right outcome time and again.
- 11:35Mm. Mm. You know, I I I always think about like with with sh you know,
- 11:39buying a new system or something like that.
- 11:41You know, there's one it's one thing to to buy a system,
- 11:44something else to actually learn how to use it.
- 11:46You know, and
- 11:47Mm.
- 11:47I I think about that, you know,
- 11:48as I'm thinking about the entrepreneur,
- 11:50I'm thinking about the leader.
- 11:51You know, it's one thing to say,
- 11:52Hey, I'm gonna implement these processes,
- 11:54I'm gonna stop being the hub and something else to,
- 11:57you know, really step outside of that.
- 11:59What is what is the how do you guide people through that?
- 12:02mental transition to really let things go,
- 12:05to put the phone down at five o'clock or,
- 12:07whatever that's going to be.
- 12:08Yeah.
- 12:08So there's a bunch of parts to that question,
- 12:12but I'll start with this idea.
- 12:14A well-run business is the product of a three-legged stool.
- 12:19Three-legged stool, and the first leg has three components of it.
- 12:23So a well-run business is the first leg is the systems run the business,
- 12:27people run the systems, you lead your people,
- 12:29your job is leadership. So
- 12:31I'll give you a simple example,
- 12:32just tease you a little bit. How do they get those French fries to taste
- 12:35the same in your town or mine?
- 12:36And the fries are made by a 16-year-old,
- 12:38and the parents of that 16-year-old can't get him or her to clean their bedroom.
- 12:43How do they do that?
- 12:43Mm.
- 12:44They got great systems. They have great
- 12:46Mm-hmm.
- 12:46recipes. Just follow this process.
- 12:49Mm-hmm.
- 12:50So the second leg of the stool is about 85% of what happens in a business ought
- 12:54to be routine. Here's the system,
- 12:56here's the recipe, here's the SOP,
- 12:58this is how we do it.
- 12:58Mm-hmm.
- 12:5915% of the time stuff happens,
- 13:01something breaks. And so one
- 13:03Yeah.
- 13:03Saturday night, 10 o'clock, we run out of potatoes,
- 13:06we don't know what to do, we have to phone the owner.
- 13:08Hey, what do we do? We don't, and we fix it,
- 13:10we do something to make it work.
- 13:12but the third leg of the stool is that when something like that happens,
- 13:16we don't look for a people solution,
- 13:18we look for a system solution.
- 13:20So,
- 13:20Mm-hmm.
- 13:20what would this system have to be?
- 13:22First of all, to prevent that from being a problem running out,
- 13:25or
- 13:25If it did, we'd know how to solve that within without having to make that phone
- 13:30call. So it's essentially building systems for any aspect of the business.
- 13:35How do we take a a call from a customer?
- 13:38What's the system for doing that?
- 13:39What happens after that? Well,
- 13:41we put it into some kind of order process.
- 13:44Okay, well, what does all that look like?
- 13:46one of the pushbacks I get on this question a lot from people is,
- 13:49well, I'm, you know, I make like
- 13:51I'm I'm I I'm a general contractor.
- 13:53I'm I built these five million dollar homes.
- 13:55I'm not making French fries. You're right.
- 13:57You're not. It's not a repeatable product that you're producing.
- 14:01The product is unique, but what has to be systematized is your process.
- 14:05The process
- 14:06Mm-hmm.
- 14:07of producing that home is the system.
- 14:09The actual output is whatever's on the blueprint,
- 14:12right? and so in
- 14:14complex environments, it's the process,
- 14:16it's the SOP, you're relying more on checklists and less on SOPs.
- 14:21Checklist ought
- 14:22Right.
- 14:22to kind of initiate a familiar routine that causes you to do the right things.
- 14:28And you know, without a checklist,
- 14:30there's story of a surgeon who started with
- 14:33thirty scalpels and then buttoned up the guy and then they went to count there
- 14:36was twenty nine. Oops. What happened?
- 14:38maybe we should have counted
- 14:39before we decided that let's close it up routine.
- 14:42Yes.
- 14:43Yes, yes, yes, yes. I I that's a really good example of of what happens though.
- 14:47it's it's like, we create these processes as as leaders,
- 14:50and it's really hard sometimes to,
- 14:52you know, just create the process and and step away.
- 14:55You know, because you know the sorts of things can go wrong.
- 14:58And then the other thing is when we create processes,
- 15:00sometimes there's things that,
- 15:02you know, we know intuitively that may not translate into into that process.
- 15:06And so we have this this fear of letting go.
- 15:09and and we've got to
- 15:09Yeah, that's
- 15:10learn intentionally how not to do that.
- 15:13Exactly. That's one of the skills,
- 15:15one of the mindset shifts that has to happen between being an operator owner
- 15:19and a leader owner. And thing it will break sometimes.
- 15:22And you but what has to be understood is delegation often for many owners
- 15:28th they think about delegating tasks.
- 15:30I'm just
- 15:30Yeah.
- 15:30getting
- 15:31a pair of hands. That's not really what delegation is at all.
- 15:34What delegation is is delegating autonomy and authority.
- 15:38autonomy and authority. You're delegating to a set of brains inside a set of rules.
- 15:42So I'll give you an
- 15:42Yeah.
- 15:42example. I have a HVAC client,
- 15:44large business, 80 million. they produce 250,
- 15:48300 invoices, service ticket invoices,
- 15:51a month. And of that, you know,
- 15:53sometimes 10, 15, 20 need some kind of adjustment.
- 15:56So my my my
- 15:58Client, the owner was getting interrupted 10,
- 16:0015, 20 times a month. Hey, can we make this adjustment?
- 16:02Here's the reason. And
- 16:03Mm-hmm.
- 16:04very much a hub and spoke kind of response,
- 16:06right? Something's wrong. Gotta talk to the boss.
- 16:09Knock, knock, got a minute. This boss is disrupted.
- 16:12So he was delegating a task. but instead he shifted the approach.
- 16:17And he said to her, You can do up to a $250 adjustment without asking me.
- 16:22Just do it. If I'll rely on your judgment.
- 16:26And her response, by the way, was like,
- 16:28I don't want to give away 250 bucks.
- 16:29And that's when he learned, I've got the right person.
- 16:32and instead, now he he the thing you're afraid of is letting go.
- 16:36The thing you need is line of sight.
- 16:39So, what does that mean in this circumstance?
- 16:41Well, once a month, let's sit down with the 20 that you made an adjustment on,
- 16:44help walk me through what the reasons were.
- 16:47I'm probably gonna agree to like.
- 16:4818 of them. Yeah, that's great.
- 16:50There might be
- 16:50Yeah.
- 16:50two that I might have handled differently.
- 16:53I won't criticize you, but together we'll agree what ought to
- 16:56be more appropriate for next time.
- 16:58And you're still, you're not letting go in the sense that you don't have
- 17:01any insight or you're just kind of blind to the thing.
- 17:04You're just transferring
- 17:05Yeah.
- 17:06or changing the way in which you get insight,
- 17:09the way in which you get control.
- 17:11It too becomes
- 17:12Mm, mm.
- 17:13a system. There's a routine, and around once a month we check in.
- 17:16Yeah, yeah. It's interesting. I have a team member that I've delegated,
- 17:20certain things to. And I find every once in a while I don't agree,
- 17:24with a decision that she's made.
- 17:25and I've made it my commitment though to support her regardless.
- 17:30You know what I'm saying? a lot of what we do,
- 17:31especially engaging with an audience it's kind of a guess.
- 17:34So it's like my instinct. What do you how do you how do you feel about that
- 17:38approach?
- 17:38There's a couple of aspects to it.
- 17:44One of the best ways to delegate is a thing called the 10–80–10 rule.
- 17:47The 10–80–10 rule. So the first 10% of the task is you,
- 17:52the leader, explaining what good looks like,
- 17:55what you want the outcome to look like.
- 17:57The 80% is the work done by that person.
- 18:01And the last 10% is you putting your special sauce on it,
- 18:05or otherwise commenting on it,
- 18:07or tweaking it, or finessing it.
- 18:09And so that's a different way that you can still be in control.
- 18:12That
- 18:12Mm-hmm.
- 18:13you start the project, make sure it gets started in the right way.
- 18:16The bulk of the work gets done by someone else.
- 18:19And the last 10% is it doesn't go out the door until it's satisfactory
- 18:22to you in some way. Or if it needs some tweaking or some kind of finessing,
- 18:26you're in a position where you can coach that person.
- 18:29And so what you really do in that method is you're teaching people how to think,
- 18:33not what to do, how to
- 18:34Mm.
- 18:34think.
- 18:35Because the feedback you're giving them is the feedback that helps them
- 18:38do a better outcome the next time because they've understood your methodology,
- 18:42your the way in which you think about that situation.
- 18:46Yeah, yeah. I I always find it important for them to be able to express themselves,
- 18:51just find, bring their creativity and their,
- 18:53impression to things. And and,
- 18:55it's it's like you said, every once in a while we just go through and say,
- 18:58Okay, here's five things, why do what made you make this decision versus this
- 19:02is wrong or ~ and and it empowers
- 19:03Yeah, ~ ~ I've got a
- 19:04them.
- 19:05it does. I've got a great example though for you.
- 19:07I have a client who owns a home staging business.
- 19:10And that business employs a full-time social media person to
- 19:15Mm-hmm.
- 19:15do social media work. And my client was complaining to me that
- 19:20the social media person that got crazy and was using fonts and music
- 19:24and totally sort of off.
- 19:25Brand. And that's when I said,
- 19:28well, that's because you haven't set the guardrails.
- 19:30Show me your brand guide. What is the font that what is the range of fonts that
- 19:34are approved that you agree with?
- 19:36What would be out of bounds? Well,
- 19:38now you've got protection and agreed upon expectations.
- 19:42You know, this kind of music's not appropriate.
- 19:44The kind of music we're looking for is we're luxurious and elevated.
- 19:48That was the two words she used.
- 19:50So, how would that look in music?
- 19:51What's elevated mean when it comes to music?
- 19:53What does elevated mean when it comes to fonts?
- 19:55Okay, let's write a rule book.
- 19:57And ultimately I said to this person,
- 19:59why is the Ten Commandments written in stone?
- 20:01Because we don't debate them. Thou shalt not kill is a commandment.
- 20:05Well, where's your brand
- 20:05Yeah.
- 20:06guide commandments? You don't have one.
- 20:08Well, that's why you're not getting the results you want.
- 20:10You don't have an agreed upon idea of what good means.
- 20:14Mm, mm. Good stuff, good stuff.
- 20:15And so this person
- 20:17was operating with a different premise of what good looked like compared
- 20:20to my client.
- 20:21Mm-hmm.
- 20:21And because they didn't have this agreement,
- 20:24that's where the you know the conflict or the tension or the where
- 20:27she wasn't satisfied with the results that was she she was getting.
- 20:30And so it really the fault was in the leadership or the system that didn't really
- 20:35exist.
- 20:35Yeah, yeah. Yeah, that's that's that's really interesting.
- 20:38I I see that a lot of times with with entrepreneurs.
- 20:41They have this big idea and they don't really communicate it effectively.
- 20:45Or I guess they're
- 20:46Mm-hmm.
- 20:46waiting for people to, start asking questions or,
- 20:49and it and it may be a situation where they're looking for some level
- 20:52of collaboration on what that final product would look like.
- 20:55so with with an idea like that,
- 20:57we're bringing a new idea to the table.
- 20:59do you have a an approach, like perhaps like a team approach or an approach that
- 21:03you recommend to your leaders to help bring this,
- 21:06you know, this new idea to life with with a team?
- 21:09So the example I'd like to use is let's think about a strategic plan.
- 21:13So would you ever show up with your leadership team and you've got a blank sheet
- 21:17of paper and let's spend the whole day doing a strategic plan?
- 21:21That's a bad use of a day because not much
- 21:22Danger.
- 21:24is gonna happen. Not much. Not much of it will be helpful.
- 21:28So you gotta arrive with a strategic plan that in your mind's eye
- 21:32is about ninety percent good.
- 21:34Mm-hmm.
- 21:34But
- 21:35how it gets presented is I you know,
- 21:37I've been working on this. I think I'm in the ballpark,
- 21:39it's probably like sixty percent good.
- 21:41Why don't we spend
- 21:42Mm-hmm.
- 21:42the day getting some input from everybody around this table?
- 21:45And when we leave today, our goal is to make sure we're 100% on the same page.
- 21:50Let's let's spend the day doing that.
- 21:52So you start from a known point.
- 21:55You've got pretty clear ideas,
- 21:56but you start also open to the idea that there are other ideas on the table.
- 22:01Mm-hmm.
- 22:01Number one and number two, the real purpose is to get everybody on the same page.
- 22:06Mm-hmm.
- 22:06~ a strategic plan, as an example,
- 22:09is five percent vision and ninety-five percent alignment.
- 22:12The goal is to get everybody on the same page,
- 22:15not you know, of course you're looking for some crazy map of the future
- 22:18and what we're trying to do, but if everybody's going off in their own direction,
- 22:21you don't really have a strategic plan.
- 22:23So the more important goal is alignment.
- 22:24Yeah, yeah. Absolut.
- 22:28Yeah, that makes sense. That makes sense.
- 22:30One of the things, one of the other difficulties,
- 22:32we have as entrepreneurs is I'm I'm sure and and you you're actually using
- 22:35one of your examples, is creating a business.
- 22:37Many of us go into business for a level of freedom.
- 22:40we want to do things our way, et cetera,
- 22:42et cetera. But we lose often lose that balance.
- 22:45You know, we've got family, we've got church,
- 22:47we've got these these other things,
- 22:48and you know, they often kind of get pushed to the side.
- 22:51How how do you work with how do you advise folks with that?
- 22:54What what you say to us as leaders,
- 22:56as entrepreneurs that are that have gotten ourselves in that kind of that web
- 23:00Let's start from a bigger picture.
- 23:01Let me ask you something. What's the purpose of a small business?
- 23:04What's the purpose of a small business?
- 23:06And the answer I want to give you is a bit counterintuitive.
- 23:09And it wouldn't be the answer you'd give your customers or your vendors
- 23:13or your leadership team. But the real purpose of a small business is to give you,
- 23:18its owner, the life you want. The purpose of a small business is to give
- 23:23its owner the life you want.
- 23:25And what happens is what you're describing,
- 23:26we get so wrapped around the axle of the business that we lose sight
- 23:30of what we're trying to do. And nobody was born to business.
- 23:33We were born to live.
- 23:34Mm-hmm.
- 23:34So, first of all, let's be clear about what you want out of life,
- 23:38and then let's build the business that gives you that.
- 23:41What would have to be true about your business so that you are living your life?
- 23:45If we keep that as our North Star,
- 23:47we'll be doing the things it takes of that.
- 23:49Ultimately you get that. You were
- 23:51You didn't start this business to get wrapped around the axle.
- 23:54You did start it because you wanted some form of freedom,
- 23:56time freedom, money freedom, freedom to make choices on your own terms.
- 24:00Well, let's work towards that goal.
- 24:02Yeah, that doesn't happen in two months,
- 24:04most cases. that can be two years or sometimes more than that.
- 24:08and but ultimately along the way,
- 24:11you're also building your wealth.
- 24:14So, what I mean by that is we often as business owners get very focused on profit.
- 24:18That's what we're doing. We're here to build profit.
- 24:21And
- 24:21Mm-hmm.
- 24:22let me give you an example. So let's say Acme Corp,
- 24:25and it does about a million in profit each year.
- 24:29Mm-hmm.
- 24:30and someone will pay a five million dollars for that business five times EBITDA.
- 24:34Okay, that's pretty good. well,
- 24:36let's work real hard for a year and we add 10% to profit.
- 24:40Well, that's a hundred grand, that's pretty good.
- 24:42Well, what happens if we actually spent as much effort on building
- 24:47the asset value of that business?
- 24:49Well, that's five hundred thousand.
- 24:51Well, you can do both those things at the same time.
- 24:53And what it takes to make a business attractive to be sold is exactly
- 24:58the same things as it takes to make the business give you time and money,
- 25:01freedom. Or I'll put it a different
- 25:03Mm.
- 25:03way, since I'm a McDonald's guy,
- 25:05or not really, but
- 25:06That's
- 25:06the
- 25:07Th I use that example. How often or how much is the owner of a b
- 25:10of a McDonald's restaurant required to be in that restaurant?
- 25:13Hmm. Okay.
- 25:13As much or as little as they like?
- 25:16Because they're
- 25:17an investor owner. So there's the operator owner,
- 25:20there's the leader owner, and now there's the investor owner.
- 25:23And the investor owner, their job is basically how to allocate capital,
- 25:27how to think about strategy, how to think about growth.
- 25:30But the operational day to day is now someone apart from them.
- 25:34Mm.
- 25:34And that guy
- 25:35often has true true freedom. and what's interesting often for crafts people
- 25:40is they go back and do the craft thing that they started off doing
- 25:43in their business, because that's the thing they enjoy,
- 25:45but now they get to do it on their terms.
- 25:47It isn't a requirement, it's a a thing that provides them joy.
- 25:52Yeah, yeah, yeah, yeah. I can picture that.
- 25:54What is what does that journey look like?
- 25:56I I I know it's different, you know,
- 25:57for every company, for every leader,
- 25:59but you know, just to just to kind of conceptualize,
- 26:02you know, hey, I want to be able to XYZ,
- 26:05you know, in you know, whatever time frame.
- 26:07So the first place to start is how you spend your time.
- 26:12And the first thing I ask a business owner,
- 26:14I'm going to use a term here, is tell me what's on your shit list.
- 26:18My what? Your shit list. What's that?
- 26:20Well, tell me the things that cause you to say to yourself,
- 26:23shit, I have to do payroll. ~ shit,
- 26:26Mm-hmm.
- 26:26I have to do receivables. Well,
- 26:28that's a clue. If your intuition's telling you that,
- 26:31it means that.
- 26:32you should no longer be the person doing that work.
- 26:35There's other more
- 26:35Mm-hmm.
- 26:36important, more valuable work to be doing.
- 26:38Okay, well now if I need my receivables done,
- 26:41how do I organize that in a way that I can delegate that to somebody
- 26:46and they're gonna do it at the level that I require.
- 26:48And once you get that kind of administrative things going,
- 26:52well what's the next things on your shit list?
- 26:54Well now it's it scales up. It might be something more like
- 26:58I don't like client having to take phone calls from clients.
- 27:01Maybe that's what it is now. okay.
- 27:03Well, you'll need a sales department,
- 27:05it sounds like to me. Okay, how do we get a sales department?
- 27:08Let's build that thing for and so ultimately,
- 27:10if you think about reducing or eliminating your things on your old shit list,
- 27:15you've eventually get to the place where you're the investor owner.
- 27:18And so it really starts with this.
- 27:20internal question of tell me the things that you don't want to be doing.
- 27:24And that often is a clue that you know,
- 27:26the the the kind of like the receivables kind of work.
- 27:29~
- 27:30Mm-hmm.
- 27:30you can hire someone to do that for depends where you are in the country,
- 27:34but let's say 20 bucks an hour.
- 27:35So why are you the owner doing work that someone will do better than
- 27:40you for twenty bucks an hour?
- 27:42Yeah.
- 27:42and what do
- 27:42you do instead? Well, let's think of some work that's worth a hundred bucks
- 27:45an hour or five hundred bucks an hour.
- 27:47We're let's think about work that produces more value for the business.
- 27:51Right now you're jumping over dollars to get to nickels.
- 27:54Dumb.
- 27:54Yeah.
- 27:55Let's stop it. Get that stuff off your plate so we can focus on
- 27:58the dollars instead of the nickels.
- 28:00It's a metaphor, of course, but it's just a way to help you think about how do I,
- 28:04it's a way to think about how to answer your question.
- 28:06Every circumstance is different.
- 28:08every business is different, but that's the the the the framework,
- 28:12that's the mental model that says,
- 28:14why don't we continue to examine what produces value in the business,
- 28:17the work that only you can do and what's the work that someone else should be doing.
- 28:22And that's as you scale, the questions you're asking yourself become different.
- 28:26Yeah, yeah, yeah. The the the challenge I I think one of the challenges I
- 28:30th I think we face is looking at the looking at the time investment.
- 28:34You know,
- 28:35Mm.
- 28:35in we talked about developing systems and processes and you know delegating work
- 28:40and training and and all of that good stuff.
- 28:42And you know, at the same time,
- 28:43you know, we've got client delivery and you know,
- 28:46it it really becomes a it it can become overwhelming.
- 28:49You know, you're you're
- 28:49Yeah.
- 28:50sitting here and you're looking,
- 28:51you know, you're looking at a mountain,
- 28:52you know, from the bottom side up and it's just like how do
- 28:54do how do we how do we get there?
- 28:56How do we stay focused? How do we commit to each step of this,
- 28:59each step of the process?
- 29:00Well, that's where having someone to help you with structure
- 29:04and discipline is useful, i.e.
- 29:06a coach, because we often get stuck in the way that you're describing,
- 29:10and the role of the coach is to help you find that path and continue
- 29:14to define the path as you go forward.
- 29:16you just said something that reminded me of something and it's a thing
- 29:20I call delegation debt. What's delegation debt?
- 29:23It's easier if I do it myself.
- 29:25It's faster if I do it myself.
- 29:26It'd take much longer for me
- 29:27Exactly.
- 29:28to explain this to somebody. Okay,
- 29:30well, so right now in the minute,
- 29:31you're right. It it'll take you 10 minutes to do,
- 29:34it'd take you 30 minutes to explain to somebody.
- 29:36But how about the second time,
- 29:37the 20th time, the 50th time, and you've paid that debt 50 times now,
- 29:43and you're still doing it yourself.
- 29:45So what's what's an investment?
- 29:47I'm gonna put a little effort up front in order to get a bigger return later.
- 29:51Stop paying debt, make an investment.
- 29:53Yes, it takes more time in the immediate future,
- 29:56in the in the short term, but ultimately that's what frees you up to
- 30:00do more and more and more important work.
- 30:03but that's the that's the you know sort of the hurdle that a business owner
- 30:08has to overcome is to recognize.
- 30:09the the the the investment in the coaching or the training or the system building
- 30:13or whatever it takes produces a benefit but it won't be in the immediate
- 30:18f it won't be today. It may be tomorrow.
- 30:21It'll likely be in a month. Stop paying delegation debt.
- 30:24It's faster to do it myself. Yeah?
- 30:26Yeah, yeah.
- 30:26How long
- 30:27how long you want to say that to yourself?
- 30:29Next year, next 10 years? do it yourself.
- 30:31It's faster? Yeah it is.
- 30:33Yeah, that's that's one of those that's one of those loops.
- 30:35It took me I I think I remember years ago,
- 30:36it it just took me forever. my my wife would say,
- 30:39You need to hire somebody I'm just like,
- 30:41No, I don't I don't I don't wanna pay the money.
- 30:44Well, you know,
- 30:45I'll I'll put it to you this way,
- 30:47or not to you, Rick, but many times to business owners,
- 30:50I'll ask this question. Do you have a virtual assistant?
- 30:53You know? Okay, well then you know what?
- 30:55You're the virtual assistant and you're crappy at it.
- 30:57You're the virtual assistant and you're lousy at it.
- 31:00so what's leverage? What's the definition of doing more with less?
- 31:04And a VA isn't an expense, it's leverage.
- 31:07It allows you to get a return on that investment.
- 31:11If you think of it as an expense,
- 31:12you're doing it wrong. If you think of it,
- 31:14if I spend two thousand a month on a VA and that allows me to create
- 31:19ten thousand or a hundred thousand or a million dollars of value,
- 31:22well, that's a
- 31:23pretty good return, thank you very much.
- 31:24So don't do the work that a VA'll do better than you,
- 31:29so because you're so in stuck on thinking about,
- 31:33it's an expense. That's not how to think
- 31:35Yeah.
- 31:36about it.
- 31:36Yeah, I I that was it was definitely definitely a a a fantastic investment.
- 31:41I I think about my VA now and she's fantastic.
- 31:44And I can't do what she does. You
- 31:46know, she's very, very detail oriented.
- 31:46Exactly. Exactly.
- 31:47I'm very big picture oriented.
- 31:49Perfect example. They often offset or supplement or complement areas that need
- 31:56attention, but we're not the person best suited to do it.
- 31:59Yeah, yeah, yeah. If someone wanted to so so one of the one of the things
- 32:03you talked about was investing time in a coach.
- 32:06we talked about, having that person to kinda go along with you.
- 32:10How is how does one go about doing that?
- 32:12there's, a lot of coaches out there,
- 32:14and you have to work with someone that,
- 32:16you know, obviously you can trust and is going into,
- 32:18you know, sh I guess shared values or
- 32:20What what what is that what does that checklist need to look like?
- 32:23What does that process need to look like to find a great coach?
- 32:26Well, to me, that you arrive at a meeting with that coach and that coach helps
- 32:31you articulate and define what your current set of problems are.
- 32:35And for many times it'll be the first time the owner's actually said it out loud,
- 32:40said it to someone else, here's the challenges I'm facing.
- 32:43And that that coach then helps you think about how what would what you would need
- 32:47to do in order to solve
- 32:48it.
- 32:49if you can find someone that can help you in that way,
- 32:51that's the resource you're looking for.
- 32:53I was working with a client named Brad,
- 32:55and after about four meets I said to Brad,
- 32:58hey, what do like most about having a coach?
- 33:00And he said to me, It's great to have a friend.
- 33:02At the time that answer embarrassed me.
- 33:05I was like, my God, this guy's paying me to be his friend?
- 33:07wow. but as I reflected on it,
- 33:09what I came to understand is that being a business owner is lonely.
- 33:13Who can you talk to? Your banker,
- 33:16the lawyer, the accountant, your second-in-command.
- 33:19in my case, if I want to talk to my wife about something that's business related,
- 33:23it takes me 30 minutes to explain it what by which time she's bored.
- 33:26Or she gives me advice in five minutes and it's not very helpful.
- 33:29So even at home, there's not anyone who really truly gets it.
- 33:33And that's the purpose
- 33:34Mm-hmm.
- 33:34of a coach. Someone who understands the world that you're in and allows
- 33:39you to to basically think out loud.
- 33:41There
- 33:41Mm-hmm.
- 33:42so much of the stuff that we need to do is just kind of rolling around in our head,
- 33:46rolling around in our head. I'll tell you,
- 33:48often I meet I have an hour's meeting with my coach.
- 33:51I'm I'm
- 33:51Finish the coaching session in 10 minutes.
- 33:53Because what happens in 10 minutes is I start articulating the problem to him.
- 33:57It's the first time I've really actually said it out loud.
- 33:59And as soon as I'm saying it, I'm almost embarrassed,
- 34:01okay, I got it. I know what I need to do.
- 34:03Thanks a lot. And great. See you next time.
- 34:06~
- 34:06Mm-hmm.
- 34:07and so you want to back to your question,
- 34:10is you want the kind of person that can assist in that process.
- 34:14to help you think out loud to articulate what's on your mind
- 34:18to define the challenges to to to agree on what needs to be done next.
- 34:23Mm, mm. Okay, a thought partner.
- 34:25Yeah, that's a good way to think.
- 34:26Now, if you've never had a coach,
- 34:27you're thinking, Man, I'm paying this guy to like think with me.
- 34:30Like I can't believe that that's worth anything.
- 34:33well, that's because you haven't experienced it.
- 34:36~
- 34:37Yeah, yeah.
- 34:38and so let me let me invite anyone to there's lots of ways to find good coaches.
- 34:43but if you're struggling with something and kind of vexed or don't know what
- 34:47to do next, that's a clue.
- 34:48That's your intuition telling you,
- 34:50I need some help with this. Where can I get some help?
- 34:52Hmm. Is is there a point at which someone would be would be ready or
- 34:57not ready to work with a coach?
- 34:58Well, there's a number of things,
- 35:00but here's the thing. I can't do your push ups.
- 35:03You need to do the work. Now, if you expect me or talking to a coach as some kind
- 35:08of magic wand, that's not going to work out.
- 35:10so you have to recognize that a coach is not a consultant.
- 35:14I'm not there to do the work. I'm helping I'm here to help you figure
- 35:17out what needs to be done. And so
- 35:19Mm.
- 35:20coaching really requires a commitment to that session and to come prepared
- 35:24and ready to deal with something.
- 35:26And it also depends on or
- 35:28relies on having a session with yourself,
- 35:31an hour with the coach and at least an hour a week to do whatever it
- 35:34is that you said you're gonna do.
- 35:36Otherwise there's lots of, lovely conversation and all of that might be fun,
- 35:40but you're wasting our time and your money.
- 35:43Mm mm. That's very wise. That's very wise.
- 35:45That's very wise. Any any other tidbits you have for us?
- 35:47a million of
- 35:48What's the most important?
- 35:50that the effort, the results we get in life is a perfect reflection of
- 35:54how you spend your time. The results
- 35:56Mm, yes.
- 35:57you get in life are a perfect reflection of how you spend your time.
- 36:00So here's the clue. If you're not getting the results,
- 36:02it's because you're not using your time.
- 36:04And the one of the common questions I like to ask is,
- 36:07Do you have a default diary? What's that?
- 36:09in that case you don't have one.
- 36:11And you're not getting the results you want in life.
- 36:13So a default diary basically answers four questions.
- 36:16What are the most important results I need to get this week or this month?
- 36:19What are those
- 36:19Mm-hmm.
- 36:19results? Number two is what do I do?
- 36:21What work do I do? Number three,
- 36:23how much of that work and then how do I match my time to the answer
- 36:27to those three questions? Used to do that once a week.
- 36:30And the thing is, we're so busy that we never really take time to organize.
- 36:35And what I've come to understand is organizing work is different than doing work.
- 36:40And we're
- 36:40As entrepreneurs usually not very good at organizing,
- 36:43and that's the most important thing an executive assistant will do.
- 36:46They'll organize your inbox, organize your time,
- 36:49help you organize your priorities,
- 36:51because you're now having to articulate that to somebody,
- 36:54your EA. And the EA takes notes and then puts it in your calendar.
- 36:58And the next day you're meeting with your EA and you say,
- 37:00Well, I didn't do what I said I was going to do.
- 37:02Well, that's not going to last very long,
- 37:04is it? So your integrity gets
- 37:06You get to keep the promises you make because you've actually expressed it out loud.
- 37:10That's one of the great values of an executive assistant,
- 37:14they help you stay organized. The most important thing we have
- 37:18as entrepreneurs is how and to what you pay attention to.
- 37:23It's the most valuable thing you've got.
- 37:25And usually it's the least managed resource.
- 37:29And so We think we have to be available.
- 37:31And the truth is you shouldn't be available.
- 37:33You should be accessible.
- 37:33Mm.
- 37:34And the difference is accessible means on your terms,
- 37:38when it's right
- 37:38Mm-hmm.
- 37:39for you. Instead of the phone ringing,
- 37:41pinging, dinging, someone knocking at the door got a minute.
- 37:44Well now the you the tail is wagging the dog,
- 37:46man. So back to your question.
- 37:48your results are a perfect reflection of how you spend your time.
- 37:51Mm-hmm. Mm-hmm. Mm-hmm. That's good stuff.
- 37:53one last question for you. The name of the show,
- 37:56of course, is the Relentless Pursuit of Winning podcast.
- 37:59winning is something that we're pretty good at defining normally.
- 38:02The challenge that we have a lot of times is maintaining that relentless pursuit.
- 38:07So what would you recommend to our audience on how to maintain that relentless
- 38:10pursuit?
- 38:11know why it matters to you. A guy named Viktor Frankl wrote a really terrific book
- 38:16called Man's Search for Meaning.
- 38:17And the backstory is he was a professor of psychology in the University of Vienna.
- 38:23So he studied human behavior. And as it happened,
- 38:26he got thrown into Auschwitz. And in Auschwitz,
- 38:29he came to discover that on any given day he could tell who was going to die.
- 38:33And what was peculiar is healthy people died,
- 38:35sick people lived. What was the what was going on?
- 38:37What was causing that? What he came to understand is those people who
- 38:40had a why would figure out a way to live even in the worst of circumstances.
- 38:44If you didn't have a why, it's like,
- 38:46what's the point? I'll just give up.
- 38:47And the second
- 38:48Mm.
- 38:48thing that's interesting about it is it doesn't matter what the why is.
- 38:51It just matters that it matters to you.
- 38:53So for some people, it's I want to smell green grass,
- 38:55I want to get back to my village,
- 38:56I want to see my spouse. Whatever matters to you.
- 38:59Because that's the thing that'll com that'll pull you through or compel
- 39:03you to do the things, the hard things that are necessary.
- 39:06Gotta know why it matters. Gotta know why what it all adds up to.
- 39:10it can be hard to define that,
- 39:12and that's often why we live unhappy lives,
- 39:15because we don't know exactly what purpose we have in life.
- 39:18Once you do it becomes clear, things that don't get me to my purpose,
- 39:21I just won't do Doesn't matter.
- 39:23I get to say no. If you don't have that,
- 39:25everything seems important.
- 39:27Mm-hmm. Mm-hmm. Mm-hmm. You gotta know your why.
- 39:29I love that. I love that. John,
- 39:30thank you so much. If someone wants to get in touch with you,
- 39:32what's the best best way to do that?
- 39:34Well it's pretty easy. W5 Coaching.
- 39:36I told you about the Socratic method based on questions.
- 39:39What are the five core questions?
- 39:40Who, what, when, where, why? So W5 Coaching on the internet
- 39:44and john@w5coaching.com gets you in my inbox.
- 39:48Fantastic, fantastic. And we will get that on your show notes.
- 39:51Sir, thank you so much. This has been an enjoyable conversation.
- 39:54My pleasure. thanks for having me.
- 39:56Absolutely, absolutely.
- 39:57And folks, thank you so much for watching or listening to another episode
- 40:00of the Relentless Pursuit of Winning podcast.
- 40:02We'll catch you next time.