This is a classic business book (first published in 1984) that argues people skills and street smart approach are more important than formal academic theories (that are taught in business schools like Harvard).
The book is written by Mark McCormack, a legend in an industry that he practically created: sports management and sports marketing industry. He founded his company in the early 1960s with less than $500 in capital, which then grew into the International Management Group (IMG) with offices around the world and several hundred million dollars in annual revenues.
Among the celebrity sports figures that they have represented as a client: Bjorn Borg, Jean-Claude Killy, Herschel Walker, Jackie Stewart, Chris Evert Lloyd, Martina Navratilova, and many more among the 500 or so clients. They also own 3 fashion model agencies, representing (or have represented) entities as diverse as the Vatican, the Nobel Foundation, and the English Catholic church. And their marketing consulting division is on retainer by more than 50 blue chip companies around the world, where they also do the personal financial planning and management for several hundred high-level corporate executives.
Furthermore, IMG’s television division produces hundreds of hours of original network programming around the world, for clients such as the NFL, Wimbledon, the US Tennis and Golf associations, the NCAA, the World Ski Federation, and the Royal and Ancient Golf Club. And they were a television consultant for the Organizing Committees for the 1988 Calgary Winter Olympics and 1988 Summer Olympics in Seoul, South Korea.
And throughout his career in more than 20 years McCormack has encountered every kind of business situations and every type of personalities imaginable. As he remarks, “I have had to decipher the complex egos of superstar athletes—and of their spouses, parents, lovers, neighbors, and camp followers. I have dealt with heads of state and heads of corporations, with international bankers and small-town advisors, with bureaucratic governing sports bodies and autocratic empire builders. I have come in contact with every phase and facet of the entertainment, communication, and leisure-time industries. And at one time or another I have done business with practically every nationality on the face of the earth.”
Hence, it is with great authority that he brought forward his thesis that some of the most crucial skills to obtain in the business world are the ones that are not taught in business schools. But this is not in any shape or form an attack on formal education. Instead, as he explains, “In fairness to the Harvard Business School, what they don’t teach you is what they can’t teach you, which is how to read people and how to use that knowledge to get what you want.”
Indeed, these are the skills that can only be obtained through experience, and in its very essence this is what this book can teach you: “how to read people, how to influence their reading of you, and how to apply or customize both to any likely business situation.”
The book is organized around 3 main themes:
- Learning to read people and understanding human incentives. This part is filled with psychology and hacks for many forms of relationship.
- Mastering sales and negotiation through relationships and timing. This part is heavy with sales and marketing insights, and everything about of negotiation.
- How to properly run a business. This part is filled with practical advice on managing time effectively, cutting down bureaucracy, on when and how to expand your business, recruiting and managing the experts, how to delegate, how to make your employees happy, and many more, including advices for start-up entrepreneurs.
And the way McCormack teaches the lessons is through real-life examples from his own wealth of experiences and observations. And the stories are so very amusing. My favourite got to be chapter 13 where he breaks down his habit of organizing his life, his schedule, time saving, note taking, getting things done, even inserting schedule for his do-nothing or relaxing time. And furthermore, let’s just say I wholeheartedly agree with everything he says about meetings.
I must admit, I was skeptical at first about the book because it has this marketing buzzword for its title. But as it turns out, it is not another cliche business book written by a university professor somewhere, nor it is a book that is trying to be “out-of-the-box” with some made-up theories. Instead, it is a compact book that pours in decades of experience in directly dealing with business from the practical, no-nonsense, approach; written by a guy who Sports Illustrated once dubbed as “the most powerful man in sport.”
It has been more than 40 years now since the first publication of the book. And it has since changed even Harvard Business School where they eventually adapted their curriculum to address many of the gaps that McCormack highlighted in this book. This is how impactful this book is.
Here are some of the most impactful quotes from the book:
- What people say and do in the most innocent situations can speak volumes about their real selves.
- If nothing else, you want to hear what people are really saying, as opposed to what they are telling you; you want to be able to put someone’s deeds—his own business activities—into the larger context of character.
- Business situations always come down to people situations. And the more—and the sooner—I know about the person I am dealing with, the more effective I’m going to be.
- A person’s true nature, true self, cannot change with situations. It is totally consistent. The better you know that person, the more you can get beneath the facades, the more accurately you can predict how he or she is likely to react or respond in almost any business situation. This knowledge can be invaluable.
- I will often fly great distances to meet someone face to face, even when I can say much of what needs to be said over the phone. If it’s important, or if it’s a relationship that may be long term, I want to form impressions based on what I observe even more than on what I hear. After all, the impression you have from meeting someone in person is often quite different from that formed in speaking over the phone.
- When I meet someone face to face, what I am trying to establish more than anything else is a comfort zone—the “picture frame,” so to speak—or the boundaries I need to observe, based on what I see and hear, which will best enable me to deal with that person.
- It bothers me when people strike a pose, when their casualness is a little too studied, or their efforts to bulk up their physique or suck in their stomach are a little too strained. The offices of these people, or how they choose to decorate them, are often an extension of this. An office that is overly cluttered with diplomas and mementos or is obviously contrived to create a certain impression is usually a dead giveaway. You have to be careful in dealing with people of this sort. They are more likely to be interested in looks than in performance, in appearances rather than real accomplishment.
- A person’s ego, even an overbearing one, may be your strongest ally. A lot of deals get made simply because someone’s ego is so involved that psychologically he can’t afford not to get it done. If you can read ego, understand its impact on business events, then control it by either stroking it, poking at it, or minimizing its damage, you can be the beneficiary of many of these deals.
- People often reveal their innermost selves in the most innocent of situations. How they deal with a waiter or an airline attendant can provide a fascinating glimpse beneath the surface. Knowing how impatient they are in a particular situation, or how upset they get over a minor error, can prove invaluable later on.
- Fish-out-of-water venues—or any small gathering in which people are forced to interact and operate outside their own comfort zones—can also be educational.
- During a two-hour business meeting, the first several minutes—before you actually get down to the business at hand—and the last several minutes—as everyone is saying goodbye—can tell you more about the people you are dealing with than almost anything else that goes on in between.
- Also, be aware of people during interruptions, unusual exchanges, or anything that intrudes upon the more formal flow of a business situation. There is a certain amount of role playing in most business encounters, and when someone “breaks ranks” the facades are going to crack a little. Simply noticing who does the breaking and how others respond with words and eyes can tell you a lot.
- Discretion is the better part of reading people. The idea of using what you have learned properly is not to tell them how insecure you think they are or to point out all the things you have perceptively intuited that they may be doing wrong. If you let them know what you know, you will blow any chance of using your own insight effectively.
- The surest way to let people in on your own security quotient is to tell them all about your accomplishments. Let people learn of your qualities and achievements from someone else.
- If you can force yourself to step back from any business situation, particularly one that is heating up, your powers of observation will automatically increase.
- How people relate to you in business is based on the conscious and unconscious statements you make about yourself. The way you dress, your phone manner, your efficiency, the way you phrase a letter, the way you greet people all affect the impression you make on others—their “reading” of you—making people perceive you in the way you want to be perceived.
- Even if you have something worth saying, expressing it in a tone or a manner that is a turnoff guarantees no one will listen.
- Be aware of all the subtle opportunities you have every day for impressing positively and all the not so subtle opportunities you have for impressing negatively. Creating the right impression can be as simple as treating people the way they want to be treated. Or as difficult as treating them that way even when they beg not to be.
- The impression you’ve made is what allows you to be less than perfect. If you can take advantage of all the little opportunities to create an overall, ongoing impression of competence, effectiveness, maturity, and fair-minded toughness—the kind of person people want to do business with—they will overlook the occasional transgression. People will forgive all sorts of “out-of-character” behavior in you if their overall, lasting impression is favorable.
- Consider doing the opposite of what someone expects. Often it’s remarkably effective. If someone is expecting toughness, it is amazing what a simple, self-effacing remark will do. If someone anticipates a hard line, making an immediate insignificant concession is a good way to begin. The more someone thinks I want something from him, the more I will go out of my way to appear as if I don’t.
- The way you dress forms an immediate, strong impression about who you are. In general, it makes more sense to be dressed conservatively. If you accept that you can tell a lot about people by what they’re wearing, it’s safe to assume they can tell the same things about you. Obviously, the more conservative your business dress, the harder you are to read.
- Whenever I’m involved in a new business relationship, I create situations that allow for split-second efficiency on my part. I will set up a phone call for 10 AM and will call precisely at 10 AM. I will promise to have a letter on somebody’s desk by next Monday, and that letter will be there by next Monday. I will show up for an appointment exactly when I said I would. Do this the first few times you deal with any new business associates, and they will assume you conduct all your business affairs that way.
- The quickest way to make a lasting negative impression is to waste someone’s time: use it cavalierly, or take up more of it than you need.
- Business promises are made all the time, and almost as often they’re broken—needlessly creating a horrible impression. If you say you’re going to do something, do it. If you can’t do it, think it’s more trouble than it’s worth, or don’t want to do it, then don’t say you will. Make up any excuse, but don’t even say “I’ll try.” At the very least that leaves the other party with the impression that you tried—and failed.
- If you have a client or customer you want to impress, do something for his kids. It will mean far more to your customer than almost anything you could do for him.
- As a lawyer, it’s easy for me to treat a commitment as a commitment and a deal as a deal. But I’ve often found that by recognizing extenuating circumstances and letting someone off the hook I have accomplished much more for myself and my company in the long run.
- Expanding on an existing business relationship is almost always easier than starting a new one. By creating the right impression you make people want to deal with you over and over again. Achieving that often comes down to knowing how hard to push.
- Where does your self-interest lie—in a short-term gain or in a long-term relationship? Sometimes you can make the best deal for yourself by driving a soft bargain.
- False flattery is transparent and can easily backfire. But legitimate flattery—appreciating and acknowledging someone’s genuine business skills from which you have benefited—can be quite seductive.
- “Mentorism” is simply a matter of seeking advice and direction from someone you trust and respect. Pretty soon, the line between giving you this advice and doing you a favor totally disappears.
- If you violate a confidence, the act will eventually come back to haunt you.
- Common sense aside, then, the most important asset in business is a sense of humor, an ability to laugh at yourself or the situation.
- “Everyone makes errors. It’s when those errors are repeated that it becomes a mistake.” You don’t have to be perfect, but you should learn from your imperfections.
- Once you know the particulars and the players and have analyzed all the ramifications, you can start to size up a situation. Step back and see what opportunities exist at the outset.
- This, indeed, is the essential difference between those who are “fortunate” in business and those who aren’t. The group that is “naturally lucky” can see the tiniest crack and turn it into a crevice. The group that “never gets a break” wouldn’t see opportunity if it jumped up and down and then mugged them.
- One of the best rules I know is, when a crisis occurs or is in the process of occurring, don’t react. Just say you’d like to think about it. Make any excuse, but don’t respond. Once you have analyzed the crisis in terms of its potential for opportunity as well as its potential for disaster, then you can respond.
- I would say, however, that in our twenty-odd years in business, 90 percent of our successes have involved in some way the need for patience, and 90 percent of our failures have been caused in part by a lack of it.
- Even when you have a definite opinion, it is often better to soften it by allowing for the possibility that you may not be omniscient: “I don’t know, but it appears to me that…”
- What these people fail to realize is that not admitting what you don’t know can lead to suspicion about what you do know.
- There is a business philosophy I subscribe to which says that if you aren’t making mistakes you aren’t trying hard enough. I believe that to get ahead in business you have to be constantly testing the edge. This means that often you are going to be wrong. The good executives are right most of the time, but they also know when they are wrong and are not afraid to admit it.
- It is not the mistake itself but how a mistake is handled that forms the lasting impression. These people would be so much better off, and would look so much better in the eyes of management, if they could admit their mistakes and get on with it rather than waste everyone’s time trying to rationalize them, cover them up, or lay the blame elsewhere.
- When you need something from another department, ask yourself, “What can I do to make it easier for them?”
- The quickest way to lose credibility is to rage about minor offenses because of a buildup over major ones. This is the corporate version of getting a divorce because your spouse squeezes toothpaste from the middle of the tube. We’re all susceptible to it, but it also shows immaturity and reveals lack of good judgment.
- The people who get ahead have a need, are driven to perform a task well, no matter what the task is or how mundane it may actually be. They bring to any job an attitude which actually transforms the job into something greater. Carpenters who become contractors at one time had a need to drive a nail straighter and truer than anyone else. Waiters who end up owning restaurants were at one time very good waiters.
- I have yet to meet a chairman or a CEO of a major corporation who didn’t pride himself on his powers of persuasion—in other words, his salesmanship.
- A feeling that selling is intrusive is not a problem. It is an asset. The best salesmen all seem to have a sixth sense about this. They can tell by the tone in someone’s voice or the atmosphere in the room when the mood or timing is wrong. And either because they don’t want to impose, or because they know that it is not in their own best interests to do so, they will not antagonize their customer by attempting to make a sale.
- Effective selling is directly tied to timing, patience, and persistence—and to sensitivity to the situation and the person with whom you are dealing. An awareness of when you are imposing can be the most important personal asset a salesman can have. It also helps to believe in your product. When I feel that what I am selling is really right for someone, that it simply makes sense for this particular customer, I never feel I am imposing. I feel that I am doing him a favor.
- Many ideas fail not because they are bad ideas, not because they are poorly executed, but because the timing is not correct.
- Extend, renew, or renegotiate a contract when the other party is the happiest, not when the contract is about to expire. Whenever we’ve done an exceptional deal for a client, I encourage the executive in charge to discuss extending the client’s representation agreement then, even if it still has a year or so to run.
- The best person to sell to is someone who has just arrived at a new company or is just leaving.
- The quickest way to lose credibility is to give someone an absolute deadline and then extend it, amend it, or ignore it.
- If you have more than one subject to discuss, or more than one idea or item to sell, make sure you reserve enough time for the most important of them. Never place yourself in the position of having to ask, “Could I have a few more minutes? I haven’t gotten to my main idea yet.”
- One of the best ways to impress a buyer is to take a half-hour of his time when he’s expecting you to take an hour. One of the worst is to take an hour and a half.
- There comes a point in almost any sales pitch when the other person should be talking, and there comes a point in almost any sales pitch when no one should be talking.
- If you ask a question on a particular subject and the answer is unsatisfactory, the best response is none at all.
- Once you get to the point in a sales pitch where you have asked for a commitment, don’t speak again until the other person has replied in some fashion. Don’t restate your case. Don’t lobby. Don’t tell him you know it’s a tough decision, but…
- Once you’ve made the sale, anything else you say about it can only work against you. So change the subject.
- One of the most subtle forms of marketability is building the perceptions into the product itself, doing everything one can to make the product “buyable.”
- These are the fundamental selling truths. If you don’t know your product, people will resent your efforts to sell it; if you don’t believe in it, no amount of personality and technique will cover that fact; if you can’t sell with enthusiasm, the lack of it will be infectious.
- Part of knowing your product is knowing all the reasons someone might not want to buy it. Anticipate the reasons. State them clearly in your mind, spell them out on paper if necessary—and have an answer ready for each of them.
- A good salesman can take ten facts about a product and by stressing some and deemphasizing others create ten different impressions. That’s what salesmanship really is: positioning the facts to get the desired response.
- When you have a pretty good idea of value, don’t be afraid to name your price. In fact, this is the negotiating instance when it may be to your advantage to go first.
- People often underestimate the importance of a conducive sales atmosphere. Just as there is a right time to make a sale there is usually a right place for it as well. The worst place may be the buyer’s office. It can’t compare to over lunch, after a tennis game, on a golf course, or anyplace where his receptivity is likely to be up and his guard is likely to be down.
- A few well-placed “no’s” create the right environment for a “yes.”
- Find out whom your would-be clients hate. That knowledge can help you push them toward your deal, particularly if they are sitting on the fence ready to teeter off to one side or the other.
- Many times our best sales approach has been merely to expose a product to a prospective buyer and let the exposure speak for itself. The buyer’s mind runs rampant with possibilities, and in his own words he begins to tell you—and to convince himself in the process—what it is that he wants to buy.
- The best first reaction is no reaction at all.
- Sell directly to the key person, and if he likes what you’re proposing, he will know best how to sell it in.
- The practical solution is to make them see their self-interest.
- The point of negotiation is to reach an agreement that is mutually advantageous to both parties. To make it a contest of egos can only work against you. Don’t use phrases like “deal breaker,” “take it or leave it,” or “that’s nonnegotiable”—anything that makes you sound like you’re daring the other person to knock a chip off your shoulder.
- A lot of times you can push someone to the wall and you’ll still reach an agreement, but his resentment will come back to haunt you in a million ways.
- If you don’t like what you’re hearing, respond with a question, even if it’s no more than “Why are you saying that?” It may cause the other side to scrutinize their position a little more closely. It softens your response. At the very least it keeps them talking while you keep listening.
- Another negotiating technique that I have found effective is to sweeten the deal with things that aren’t that important to me but could be important to him. This can include terms which have little or nothing to do with the deal at hand.
- Never overlook the barter possibilities of throwing in quantities of your product, which you get at cost but which are valued by the other party at something closer to retail.
- The pressure to get a deal done can make you say and do things that aren’t in your best interest. Whether your deadline is real and absolute (it rarely is), or merely desirable or convenient, don’t let the other party know about it. If the other party knows you have a deadline, they really don’t need to know—or give on—anything else. Conversely, their deadline is one of the most valuable pieces of information you can extract from them.
- Counter emotional outbursts by going emotionally limp. Say anything except what you probably want to say. “Let me think about that,” or “I’ll call you back.” Perceive it as a game with winners and losers because that’s what it is: a game of wits—and who’s going to be the first to lose theirs.
- Anger, and other strong emotions, can be effective negotiating tools, but only as a calculated act, never as a reaction.
- Candor, when properly used, is one of the most powerful, effective—and underused—negotiating techniques I know of. When negotiations become excessively tense, are about to get out of hand, or are in danger of falling through, a moment of candor—“Look, I really want this to go through” or “This is very important to me”—not only brings back perspective, it often totally disarms the other party.
- Are You Negotiating from Strength or Weakness? This is an important question to ask yourself before actual negotiations begin and can usually be answered from the selling effort alone.
- If you are negotiating from strength, the more you let your strength be known, the more the other party will go out of his way to disabuse you of it. Even the most obvious compromises will become concession standoffs, with the other party insisting on winning all the minor points because he knows he will have to fold on the big ones.
- One party generally benefits more than the other from vague or nonbinding language in a contract or letter agreement. Determine up front whether a vague agreement or an airtight one better suits your purpose.
- A lot of building a business is listening to your own common sense, then taking the necessary steps to turn the theories into practice.
- If we have had a formula for growth it has been to start with the best, learn from the best, expand slowly and solidify our position, then horizontally diversify our expertise.
- Obviously, I don’t believe that everyone we’ve ever hired is smarter than I, but I can honestly say that I would not want to match my expertise in fashion, tennis, television, skiing, or football against the people who are running these divisions for us. And I truly do believe that the clients being represented by these divisions are in much better hands than if I was representing them personally.
- Sell your division rather than yourself, and you will find more of a willingness among others outside your company to work with your subordinates. The smarter you make the people who work for you look, the smarter you are going to look as a manager. It’s also less masochistic.
- Some managers, I believe, don’t understand that in teaching someone else to do the job they are doing they are freeing up their own time for more important tasks and greater responsibilities.
- Most management philosophy that you read in a book or learn in a classroom is going to have limited effectiveness. Once you factor in human beings—egos and personalities—even the most sensible theories begin to fall apart.
- The only management philosophy that does work is the one that acknowledges that none of them do: Be flexible and strive for consistency.
- I have four general philosophies for dealing with employees: (1) Pay them what they are worth; (2) Make them feel that they are important, yet (3) Make them think for themselves; and (4) Separate office life from social life.
- Several years ago, Chris Lewinton, managing director of Wilkinson Sword, gave me some very good advice about running a company. “Get to know the people two levels down from you,” he said. “That’s where your future is going to be, and it will give a better idea about the present.”
- The one thing that people who know me best attribute to me the most is an ability to manage my time efficiently. I begin by viewing a week as 168 hours, and I schedule time for relaxation and rest as well as work. I force myself to have time to relax, be it to play tennis, to read the morning paper, to take a nap in the office, or simply to do nothing—to free my mind from any sort of work-oriented thoughts or decisions. To make sure I have this time I program these nonwork activities into my schedule.
- I hate leaving unfinished business or having anything hanging over my head, and I work with great intensity to obtain moments of empty space—a minute, an hour, or a weekend—in which to enjoy having nothing to do.
- I always perceive any business activity or commitment as a function of the time I have allotted for it. I also play a kind of game with myself. If a meeting is starting in one hour and I have decided there are ten things I want to accomplish before that meeting begins, I will do whatever is necessary to fit all ten things into that hour. It may mean making a phone call a lot shorter than I would have liked, or dashing off a note rather than a letter, but by challenging myself this way, by fitting activities into smaller and smaller time segments, I have over the years developed an almost minute-by-minute awareness of how I am spending my time.
- I pretty well know how long it takes me to do everything, and I pretty well know the quickest way to do everything, from how fast or slow certain restaurants are and in which ones you therefore have to order immediately to the fastest elevators in certain buildings. When arriving at airports, for instance, I will often have people meet me at the departure ramp, which is almost never as crowded as the arrival area and therefore much quicker.
- In short, I try to be very precise about everything that by its nature is imprecise. My mind is a catalogue of “quick cuts” which allow me to reduce the time-wasting vagueness of certain activities or to avoid them altogether.
- As a general rule for getting things done the quickest, do the things that everyone else has to do at the times when everyone else isn’t doing them. I leave so early in the morning that getting to work is never a problem.
- Ninety percent of wasting time and standing in line can be eliminated with a little preplanning and some common sense.
- The whole solution to mastering time is to do the things you planned on doing when you planned on doing them and for no longer than you planned on doing them. This demands that you work from some overall organizational system.
- In addition to my yellow pads, I always have a stack of three-by-five cards in any coat pocket. Some of them are marked with the names of employees or business associates with whom I am in regular contact. If I think of something in relation to one of these people, I jot it down on the appropriate card. The next time I speak to that person I will have everything I want to talk about at my fingertips.
- I also carry a stack of blank cards that I fill up with miscellaneous notes during the day, and at the end of the day I transfer that information to the appropriate page of the appropriate yellow pad. I write down everything I intend to do, and once I have written it down I forget about it. I know it will turn up at the appropriate time and place on the appropriate day.
- I have never known a successful person in business who didn’t operate from some personal organizational system.
- There are two points about the way I organize myself which have an almost universal application. First, write it down. Write it down anywhere, on your shirtsleeves if necessary, but write it down. This allows you to free your mind for other things. But more important, it means you are going to do it. Writing something down is a commitment. Once you have performed this physical act, you have provided the momentum for getting something done. The agony of carrying over an item and the ecstasy that comes with crossing it off will provide further incentive. Second, organize for the next day at the end of the previous day. This is what gives me peace of mind at night, a feeling that I am on top of things, and a real excitement about coming into work the next morning. Simply by arranging the next day—defining on paper what I want to accomplish—I feel that I have a head start.
- It is probably worse to allocate too little time than it is to allocate too much. This puts you in a position of always having to catch up, which backs up through your schedule and usually gets worse as the day wears on.
- People who manage their time badly seem to want to be unrealistic and go out of their way to create out-of-control situations.
- You should obviously have a pretty good idea of the number and complexity of the subjects to be discussed before meeting with anyone, but how long each will take also depends on two human factors: how quickly the other person gets and/or gets to the point; and his or her personal style of doing business.
- Learn everything about the people you are dealing with, including the way they like to do business and their own time management habits. I know the people who will invariably be twenty or thirty minutes late for a meeting, and I will plan on that. I will allocate meetings with them later on my schedule than they have on theirs and use the time differential to get several things accomplished. This is much more productive than getting irritated and hoping that they show up on time for a change.
- I have known some very effective salesmen who use this to set up appointments and who get in to see people they don’t even know or who otherwise wouldn’t see them: “Write on Mr. So-and-So’s calendar that I will stop by at 10:30 next Wednesday. If this is inconvenient, please have him call me.”
- Know the characters of the people you are dealing with and observe their phone protocol, not your own—even if theirs is sometimes a bit silly.
- A no is often better for everyone. It saves time on both sides, and it will give you a sense of satisfaction. The realization that you won’t have to deal with it again can make you feel like you’ve really accomplished something.
- Someone once told me that when the Ford Motor Company interviews a managerial-level applicant they note whether the potential employee puts salt and pepper on his food before he tastes it, the theory being that such a person is likely to make a decision before knowing all the facts.
- The people I respect the most in business are all instant decision makers. They don’t need to know every “knowable” fact first. They accept that they are going to make their share of wrong decisions and are self-confident enough to know that most of the time they are going to make the right one. A reputation as a good decision maker is usually based as much on how quickly and definitely that person decides as it is on the results.
- One kind of decision maker will say, “We shouldn’t do this because three other people tried it and failed,” but a good decision maker will find out what all three did similarly and what all three failed to do similarly before reaching the same conclusion.
- A circus keeps a baby elephant from running away by chaining it to a stake. When the animal pulls at the chain the cuff chafes its leg, and the baby elephant concludes that to avoid pain it best stay put. But when the elephant grows up, the circus still chains it to the same small stake. The mature elephant could now pull the stake out of the ground like a toothpick, but the elephant remembers the pain and is too dumb to use the new set of facts—how circumstances have changed. The tiny stake keeps a two-ton elephant at bay just as effectively as it did the baby. Many executives are too dependent on old facts, on outmoded conventions, or are still basing decisions on what worked twenty years ago. This is elephantine decision making.
- A lot of questionable decisions have worked because the people who made them were determined to make them work, and a lot of good decisions have failed because the people who made them never got over their doubts.
- Many new businesses never get off the ground, not because they were bad ideas, not because the people were wrong, but because the fund-raising efforts failed. Yet many of these new ventures, I believe, didn’t actually require the capital the participants convinced themselves that they did. If they had been willing to start small, to go back a few steps and start from further back, they could have given themselves a fighting chance. I can’t overemphasize the importance of starting small and keeping it simple.
- The cliché is, “Don’t work hard, work smart.” The truth is, “Work hard, work long, and work smart.”
- Fear of failure is at least as common as the desire for success. In fact, if properly harnessed it can be the energy that drives the wheel. But for many people it becomes debilitating. Learning to use fear rather than letting it use you is obviously not just a problem for entrepreneurs but for anyone in business.
- The Inner Game of Business, as this could be called, is understanding the Business Paradox: the better you think you are doing, the greater should be your cause for concern; the more self-satisfied you are with your accomplishments, your past achievements, your “right moves,” the less you should be.