Growth is Its Own Reward

Please allow me to get a little nerdy, for a moment, and say that humans love transcendence.

Meaning, we humans love to transcendent our physical and mental limits.

This desire for transcendence can lead to good, bad, or innocent behaviors.

Drugs and alcohol are a way to transcend. And, within reason, they can be pleasurable. However, taken too far, they can turn, and become destructive.

There are also innocent ways to transcend. For example, kids often enjoy making themselves dizzy. Their pleasure is the result of temporarily escaping their day-to-day earthbound reality.

Halloween is another big occasion for transcendence. Kids of all ages enjoy dressing up because it allows us to become something other than we usually are. It allows us to transcend our limits.

Hopefully you are following me. I admit this post is a little nerdy.

This leads me to, perhaps, the most important form of transcendence; growth. You see, every time we grow, as human beings, we transcend our physical and mental limits. Isn't that right?

Becoming more than you were is definitely a transcendent experience. And it is available to us all. Indeed, humans are hard-wired to enjoy the growth experience.

Do not get me wrong, while in the process of growth, it can be very unenjoyable. Growing pains are a very real thing.

The joy is experienced upon reflection. When we look back at our struggles, and the obstacles we overcame, it can be a highly transcendent experience.

And, again, this is an experience available to all. Even better, it is a constructive, not destructive, behavior.

Last week I talked about the importance of faith. And, this week, I am asking you to believe. While you are going through the growth process, it may not be very fun or enjoyable.

But, I am asking you to believe. To put your faith in the knowledge of the joy of transcendence.

Indeed, I believe growth is life's imperative. No matter your age!

Blind Faith

Faith is an interesting thing. It is very necessary. Yet it ain't easy. Far from it.

To succeed, as an entrepreneur, you will need very large doses of faith, because doubt is insidious and destructive.

As entrepreneurs, we are bringing new and better things into existence. We are change agents. And, this can be very difficult because humans are wired to resist change.

Psychologists would call our natural tendency to resist change the Status Quo Bias. And, it messes with our heads. Because, the job of an entrepreneur is to innovate and bring new things into the world.

The life of an innovating entrepreneur is filled with doubt. And, the only known antidote to doubt is faith.

How do we develop faith? It is a great question. And, one you must answer on your own. That said, I do have some recommendations.

One thing I know, for sure, is humans are contagious. I am just getting over the flu. And, we all know how viruses and bacteria are contagious. But, that is not all. Many aspects of humanity are contagious.

This is why it is so important to be careful with whom you choose to associate. Ideas, attitudes, and emotions are also extremely contagious. If you want to build faith, get around people who have it. Go to conferences, symposiums, etc.

Perhaps the most critical element of faith is faith in self. This might be called self-belief, or simply confidence. If you have ever been around a successful entrepreneur, I am willing to bet that person reeked of self-confidence.

Which should make sense. To succeed, as an entrepreneur, you must overcome mountains of doubt. And, in doing so, you develop a very healthy self-confidence.

So, specifically, how do we develop confidence and self-belief? In a word, incrementally. Like most things in life, we do a little at a time. And, over time, we let the compound effect kick in.

As mundane as it may sound, like most things in life, the key to improvement is practice. You see, doubt will derail your dreams, so you need to develop belief. And, the best way to develop faith is by faithing. Meaning, taking small steps, which require faith, little by little, over time.

It is like Ralph Waldo Emerson said, "Do the thing and you will have the power." Forget blind faith, go for earned faith.

Technology Destroyed My Company

A few weeks ago I wrote about the human tendency to be excessively seduced by technology. To the point where our brain flies out the window. Click here if you have yet to read it.

This is a really sour spot for me. You see, years ago, technology destroyed my company. I will explain. At the end of my college days, I had an automotive tuner shop, which I was building with a couple partners, and things were looking pretty promising.

In Orange County, California, lots of people like to drive fast cars. So, the market was there. Unfortunately, the company ultimately failed. And, the main reason for the failure was one word; technology.

I had one partner who was the main financial backer. And, without being too rude, this individual had delusions of grandeur. He thought he was he smartest guy around.

In an attempt to create an electronic network of distributors, he purchased Oracle software. If you are not aware, Oracle is not like Quickbooks or whatever. In addition to purchasing the product, we also had to employ a team of 4-5 engineers just to implement the software.

All told, that decision ended up costing north of a million dollars. Worse yet, it never really worked! But, the dream of a seamless electronic network was too much for my partner to resist. In simple terms, he was seduced by technology.

The other enormous financial mistake my partner made was he purchased these things called dynamometers. A "dyno" is a device used to tune cars. An excessive and unnecessary device, to be sure.

Total cost for the dyno mistake (again) more than a million dollars. In fact, when we sold our building, we sold it to a friend who owns a body shop. And, to this day, a million dollars worth of technology lays in the ground, unused.

Businesses usually fail when they run out of money. And, by throwing away more than two million dollars, we were led to a situation where we could no longer meet payroll.

As you might imagine, this was a very painful experience. Like all budding entrepreneurs, I had been very optimistic about the future. To have those dreams shattered was an enormously difficult pill to swallow.

The failure of that company taught me two extremely important lessons. First, as the title of this post says, technology can flat destroy a company. And, it can do it quite easily.

Humans are excessively seduced by technology, and this problem happens more often than we care to admit. To this day, I am very circumspect of any, and all, money spent on technology.

The other big lesson is how being an entrepreneur is synonymous with being a salesperson. Meaning, sales is the lifeblood of a business. If you do not make enough sales, you go out of business.

My formal education was in chemistry. And, unfortunately, my little 21-year-old pea-brain thought the following, "If I can get a degree in chemistry, from the #1 chemistry school in the world, figuring out business will be easy." Ouch! For years it was hard to admit those words.

These sorts of experiences are the reason I spend so much time harping on the importance of sales and selling. If you want to succeed, as an entrepreneur, you need to be a salesperson. And, it ain't easy!

Thus, in a sense, I share in the blame. Had I gotten the company to sell enough, we might still be in business. That said, a two million dollar hole was virtually impossible to overcome.

Had we not wasted so much money, we might have been able to buy the time to figure out a successful sales and marketing strategy. I think we could have bootstrapped our way to success.

All-in-all, as it stands, technology destroyed my company 😞

To be a Lighthouse

Have you ever seen the television show Life Below Zero? I find it utterly fascinating and entertaining.

A little while back I was watching an episode and they had this clip which strongly resonated with me.

If you have seen the show, you might be familiar with the name Sue Aikens. She is a cast member, and a colorful one at that.

Sue said all her life she has wanted to be a lighthouse. She has wanted to be a beacon to show people a path to safety. Here is the clip from the show:

I don't know about you, but I totally relate. For as long as I remember, I too, have wanted to be a lighthouse. I have wanted to help guide the way.

I am not sure if it is connected, but, my mom has always been a fan of lighthouses. She has a number of lighthouse decorations throughout her house.

One thing I know, for sure, is life is complicated and challenging. And, cutting through the clutter can be quite a chore. Indeed, it can be overwhelming. 

For this reason, I think we could all use the objective assistance of a metaphorical lighthouse. A lighthouse without an agenda. Not a self-serving charlatan, but an honest guide.

When you find an honest broker of knowledge, I think they are more valuable than gold. I once mentioned three of my main, personal lighthouses in this post.

My commitment to you, today and forever, is to be a neutral arbiter of information. With the explicit goal of helping you, in whatever small way, reach your goals, whatever they may be. In a word: effectiveness.

Additionally, done well, I think we know entrepreneurship is a form of lighthouse. More on this as we move forward. What do you want to be remembered for? Figure it out, then go do it.

New Beginnings

Happy New Year!!!

As we all know, the new year is a time of new beginnings.

The thing is, a lot of times, new beginnings are a matter of seeing old situations with new eyes.

Below is an amazing piece of artwork that was displayed at a festival called Burning Man.

I find it to be so powerful.

It reminds me to listen to my inner child.

It reminds me of beginner's mind, an idea I wrote about here and here.

Wouldn't you agree that, so many times, we get in our own way?

The Reason I Blog

First off, I would like to wish a very Merry Christmas to each of you 💟🎄🎅

Seeing as this is the last Monday before the new year, I thought I would share the Why behind my blogging.

One of the main reasons I blog is because I have tremendous respect for the two gentlemen in this video:

So, hopefully you can forgive me for all the times when I sound like a total blowhard (like I did last week.) 😝

Seduced by Technology

We humans are overly seduced by technology.

We love shiny new objects. To a fault.

We focus on new things because they are neat or "cool."

But, they are really just a convenient distraction.

The most important technology, in the world, exists between your two ears.

Your head contains the technology you should be focused on.

The new iPhone will not bring you lasting happiness. It will not fill the void.

Humans are wired for progress. Meaning, progressing from Point A to Point B.

Whether your goal is entrepreneurship, or whatever it is, you need to be clear about your mission.

What is your Point B?

Technology is usually a distraction. A dream. Wishful thinking.

The tool needs to serve the mission.

The mission ALWAYS comes first.

Ask yourself, what are you really trying to do?

Who do you want to be?

What do you want to be remembered for?

A lot of people do not have a clear mission. So, they default to technology for distraction (under the guise of entertainment.) Which ultimately leads to a lot of regret.

Do not let technology get the best of you.

I only say this because I have made this mistake myself.

Many times.

It led me to Nowheresburg.

Emptytown

Regretville

Go For It !

Last week I talked about the great movie La La Land. And, it got me to thinking about the importance of going for it.

In La La Land, the characters chase their dreams. Which caused me to think about an excellent book titled Whoever Makes the Most Mistakes Wins.

The book was written by Richard Farson and Ralph Keyes. And, in the book, you will find a section, titled "No Regrets," which I thought I would pass along to you.

Here are the words of Farson and Keyes:

When doing something we're passionate about, failure becomes a nonissue. Even our worst blunders don't feel like mistakes when they're a result of taking chances we wanted to take. The biggest regrets in life are for risks we didn't take, not ones we took and lost.

Pursuit of a dream rarely leads to regret––win, lose, or draw. Not pursuing one routinely does. A study of forty-eight women, ages twenty-five to sixty-seven, found that the happiest ones were fulfilling a childhood ambition. Those who weren't doing what they had dreamed of doing, no matter how successful they were in careers and marriage, invariably wished they had chased their dreams instead. According to psychologist Patricia Weenolsen, who conducted this study, "Decisions of the head rather than the heart are the ones we most deeply regret."

Too many of those with unrealized aspirations have set them aside due to fear of failure. The bigger the dream, the greater the fear. Doing less than our best allays this fear. I could have done better if I'd really tried, we assure ourselves. Among the least appreciated reasons for doing superficial, second-rate work of any kind is the comfort of knowing it's not our best that's on the line. By not trying too hard, we avoid learning what our true potential is, and having to fulfill it. Doing our best can be deeply threatening. It forces us to consider what we're actually capable of accomplishing. Once we learn that lesson, we can't unlearn it. Our true potential becomes both a shining light we can follow and an oppressive burden of expectation that might, or might not, be met.

A fear of doing our best, of being our best, is one to which everyone is prey. In its clutches we may not succeed, but at least we don't fail. How could we? We didn't even try. Far more is at stake when we do what we really want to do rather than something less. We may never fully appreciate the role that not pursuing a dream plays in limiting people to disappointing careers and regret-filled lives.

Consider a retired secretary we'll call Emily. Emily led a supremely cautious life. Her reflex response to any suggestion for change was "No." Emily never married, didn't go to college, and lived in her parents' Chicago home. Her entire career was spent working in the same hospital. Emily had few actions to regret, because she initiated few acts. Her life was devoted to avoiding failure. As a result––in her own mind, anyway––Emily's life overall was one big failure. She entered the home stretch of that life filled with anguish about not having been bolder. In her late seventies, Emily observed that if she ever wrote a book, it would be titled The Risks I Never Took. We could all contribute a chapter to Emily's book.

Not taking more chances is a major source of regret. That may not become apparent until late in our lives as we review the many roads not taken. "I used to be so gutsy," is a common refrain. "What happened?" Such a realization doesn't necessarily lead to bolder living. Anticipating the pain of failure, at every stage of life we're all susceptible to avoiding activities that might fail. But failure's pain subsides faster than the ache of regret. Thoughts persist about what-ifs and what-might-have-beens had we been more daring. In the long run, avoiding activity that might hurt causes more agony than acting, failing, and dealing with the pain.

Failed risks at least leave us with the pride of having dared, and the knowledge that we gave all we had. A Philadelphia papergoods salesman recalled wistfully the four years he spent in Los Angeles trying unsuccessfully to become a stand-up comedian. Did he regret the way things worked out? "Not a bit," said the salesman. "I gave it my best shot. Knowing that, I'm not unhappy with my life now. I'd only be unhappy if I hadn't tried to do stand-up first."

Risk takers ranging from entertainers through rock climbers to business founders seldom regret their daring ventures, even ones that go belly up. They know that few things are more satisfying than jumping high, even when they land on their backsides. Bold acts are rarely regretted, regardless of the outcome. On the other hand, obsessive brooding is often the result of throwing one's hand in too soon. Regrets bordering on mourning are felt about risks not taken: job offers spurned, loves abandoned, fights backed away from, pictures not painted, start-ups not started. Remorse is far more likely about being too cautious than about being too reckless. "I think I don't regret a single 'excess' of my responsive youth," said Henry James, "...I only regret, in my chilled age, certain occasions and possibilities I didn't embrace."

The Fools Who Dream

Over the weekend, I finally got around to watching the movie La La Land.

What a mistake!

Meaning, I cannot believe it has taken me so long to see the film.

It was fantastic!

I am not usually a fan of musicals. But, this movie was simply delightful.

If you have not seen it, do yourself a favor, and go check it out.

ASAP

The Paradox of Work

I know people are not overly interested in paradoxes. How do I know? Because my posts, with that word in the title, do not get a whole lotta views.

Thus, I am left with a choice. On the one hand, I could write on topics that will get views. This would be along the lines of the clickbait phenomenon.

On the other hand, I could write about what is truly important. And, this is a real challenge. Meaning, the decision between quality and quantity is far from easy. In this way I am stuck in something of a paradox of my own (actually, conundrum might be a more accurate word.)

Having said all that, I will post one last time about paradoxes. Because, if you want to truly understand life, I think you need to understand the paradox. Life is fundamentally paradoxical. I know that sound nerdy as hell, but it needs to be said.

Today's paradox, as the title indicates, is the paradox of work. This comes straight from my favorite book Flow by Mihaly Csikszentmihalyi.

From the book, "Even when they feel good, people generally say that they would prefer not to be working, that their motivation on the job is low. The converse is also true: when supposedly enjoying their hard-earned leisure, people generally report surprisingly low moods; yet they keep on wishing for more leisure."

This is one of the central themes of the book. The idea is that leisure does not really make us happy. Csikszentmihalyi draws a distinction between pleasure and enjoyment. Leisure can be pleasurable but it is not enjoyable.

Unfortunately, most of us tend to choose pleasure over enjoyment. And, it is such a pity. We choose things that are not in our best interest. A whopper of a paradox. In a related vein, I wrote this post a few years ago.

Also, because it is closely related, let me leave you with one other example. I recently read the book The Upside of Stress by Kelly McGonigal. And, I quite enjoyed the book. I believe understanding the upside of stress is a wise perspective to obtain.

McGonigal writes, "Research also shows that a less stressful life doesn't make people nearly as happy as they think it will. Although most people predict they would be happier if they were less busy, the opposite turns out to be true. People are happier when they are busier, even when forced to take on more than they would choose."

So, again, it is not always wise to trust our instincts. And, to bring this post full circle, my instincts tell me to go for the clicks. Isn't that what 'everyone' says we need? As for now, I think I will shoot for something more important. I think paradoxes are important. We shall see what happens.

Have a great week.

The Paradox of Time

Time is a very curious thing.  Few of us truly understand it. Let me give you an example. If you were driving your car, at the speed of light, and you turned on your headlights, would anything happen?

That question relates to Einstein's Theory of Relativity. If you do not know the answer, do not worry. None of us do! Even modern day physicists do not truly understand the Theory of Relativity.

But, I am not looking to talk about some heady physics topic. It is simply too difficult. My point was only to illustrate the illusive nature of time.

Instead of Einstein, let me mention another scientist. A scientist whose work is much more accessible. The scientist's name is Philip Zimbardo. And, he is a professor of psychology at Stanford.

About a decade ago, Zimbardo wrote a book titled The Time Paradox.  And, I found the book to be quite interesting. In Zimbardo's words, time is a paradox because it is, "Something that influences every decision you make (yet) you are totally unaware of."

That quote can be rather intimidating, but let me give you an example. I have heard quite a number of people propose the following thought experiment with regards to career selection. They say, "What would you do if today were the last day of your life? Do that!"

The question is completely ridiculous. So much so that any person giving such advice is immediately discredited, in my mind. That question is about hedonism, not planning.

Let me summarize Zimbardo's recommendation. The most important thing is, when you think about the past, you want to focus on the positive not the negative.

Next most important (meaning, the thing which deserves second priority) is to look to the future. And, third, in the present, it is wise to be hedonic, rather than fatalistic.

Hedonism does have its place. But, it is definitely not the most important thing.

The Banker's Paradox

If you were not raised with a silver spoon in your mouth, you will likely need to solve the Banker's Paradox.

Last week got me to thinking about paradoxes. Because, in many ways, Thug Rose Namajunas is a paradox. If you have not read last week's post, click here.

Today's paradox has roots in the Bible. Namely, Ecclesiastes 6. I can paraphrase the Banker's Paradox as follows: Banks will give all the money in the world to people who do not need it. While they refuse to give money to those that need it the most.

Stated in more obvious terms: If you are good with money, and have a good credit score, banks want to lend you money. However, if your financial history is lacking, banks do not want to give you money.

Have you heard this paradox before? It is, indeed, pervasive and important.

On the one hand, I might offer my opinion on resolving the banker's paradox. However, I feel I would be doing you a better service by asking you a question. My question is this, how do you think people can best solve the banker's paradox?

Now, listen, I realize that last question is pretty simple to answer. Especially when you consider how I stated the banker's paradox in "more obvious terms." But, don't get it twisted. The banker's paradox is all around us. And, it is definitely not just about money.

For example, yesterday, I was listening to Joe Rogan's podcast. And, Joe was talking about how often low-level people hit him up. What I hope you realize is how getting in, with successful and established people, is a version of the banker's paradox. Ya dig?

A Star (Good Person) is Born

On Saturday night, in Madison Square Garden, an aspiring good person stepped out into the light. It was in New York City where Rose Namajunas shocked the fighting world with her first round knockout of champion Joanna Jędrzejczyk.

Even if you do not like the fight game, stick with me, because you need to know about Ms. Namajunas. I have been a fan of mixed martial arts for 20 years. And, while I understand how some can say the sport is too violent, I believe the most fascinating part is the psychology.

In fact, I enjoy watching behind-the-scenes more than the actual fights. This is where Saturday's fight was so special. Entering the fight, the Polish Jędrzejczyk (pronounced young-jay-check) was widely considered the pound-for-pound best female fighter on the planet.

With an undefeated record of 14-0, it appeared as if Joanna was unbeatable. In addition to her stellar skills, Jędrzejczyk is also a master at talking trash. Mental warfare, as we might call it, was recently taken to new levels by Conor McGregor. But, make no mistake, Joanna is also excellent at messing with her opponents heads.

On Saturday, Jędrzejczyk was a 6-to-1 favorite to win the fight.

Now, I have been watching Namajunas (pronounced naw-maw-you-ness) for quite a while. But, even still, Rose is only 25 years old. Which seems too young to thoroughly dismantle the best fighter in the world. Rose is a women of fascinating complexity and contradictions.

You see, Namajunas has never hidden the fact that she has a family history of mental illness. Her father was not really a part of her life because he suffered from schizophrenia. A fact Jędrzejczyk seemed to be attacking when she called Namajunas "mentally unstable."

Perhaps to the contrary, Saturday seemed to prove Rose's remarkable stability. My words will not do her justice. I would rather you hear from Namajunas herself. So, I will provide you with the links to a couple of short videos. But, let me mention one more interesting tidbit.

Rose's nickname is "Thug." And, she can definitely sound pretty gangsta when she talks. That said, you would never guess the song she selected for her walk to the ring. She chose Sweet Freedom by Michael McDonald! (Though the PA messed up and played something else. Just another adversity Namajunas was able to overcome.)

After the fight, when asked about one key to her success, Rose said, "Always controlling my breathing. Not paying attention to feelings, as much. Feelings are just feelings. They should guide you, but they shouldn't control you. You can chose whatever thoughts you want."

Brava Rose, brava!

You have got to hear Rose speak. Click here to watch her interview from inside the cage. And, click here to listen-in as Namajunas speaks with the commentators at Fox.

Watch those two videos, especially the second one, and listen to the wisdom pour out of this young woman. A lot of athletes are full of clichés. This young lady pours forth with interesting insight.

Make no mistake, I am a fan of Conor McGregor. But, I stand, and applaud, Miss Namajunas for being her authentic, best self.

Leadership is a Sales Job

In the modern age, one key element, of developed countries, is freedom and mobility. For example, in America, people can come and go as they please. This has critical implications if you want to be a leader.

Most obviously, you should be able to see how sales is a key component of leadership. You need to earn the respect and devotion of your followers. You need to sell them on why they should follow you.

Employees have the freedom to work where they please. If you do not treat your employees well, they may just leave you. This applies in both the private and public sectors. It is most obvious with not-for-profits, where you do not even have employees, you simply have "volunteers."

One way, to treat people well, is to help them get want they want. Though we rarely view it in this way, what a person wants is their mission.

Leadership can be construed as "Managing for the mission." While an organization should have a clear mission (though most do not) individuals should think through their mission as well. Few people have done this, and they could use the help of a leader.

Though we all want money, is it unlikely to be your mission. You are much more likely, to discover you mission, by answering questions like "What is worth doing, even if I fail?" or "What do I want to be remembered for?"

One of my favorite sayings is, "Life applies friction." In today's example, the simple fact that different people, pull in different directions, creates friction. A key job, for the leader, is to manage that friction.

The goal should be unity through diversity. Your job, as a leader, is to channel the various followers, and create unity through a diversity of people. Because, as I have suggested, not all mission statements will line up. To compound the challenge, most people do not have a personal mission statement. They simply have desires, fears, and interests.

Identifying where you are headed (your mission) is an extremely important part (probably the most important part) of convincing people to follow you. By convincing, I mean selling people on joining you for the journey. It is not easy. But, who ever said leadership is easy?

The Jobs of Selling

Walter Isaacson is the official biographer of the late Steve Jobs. In 2011, soon after Steve's death, Isaacson's biography was released. In the book, Walter talks about the way Apple Computers, and iTunes, changed the music industry.

Being that iTunes has been now around, for more than 15 years, and is so ingrained into the way things are done, it can be hard to remember how the music industry used to operate.

To say the music industry was protective of its property would be quite an understatement. There were seven major record labels. And, if you wanted to use their music, you had to pay.

The poster boy for the industry's protectiveness (perhaps greed) was Lars Ulrich, the drummer for Metallica. Ulrich famously participated in litigation against people who used the file sharing service, Napster, to illegally download music.

The music industry had been printing money for a very one time. And, change would not come easy. So, when Apple Computers came up with the idea of iTunes, it was not an was sell.

In fact, Steve Jobs, himself, had to put on his sales hat, and met with the various players. In his book, Isaacson talks about how Jobs personally met with Roger Ames of Warner Music, and Doug Morris of the Universal Music Group, to sell them on the idea of iTunes.

There were many elements to the genius of Steve Jobs. And, selling was definitely one of them. Because, as I have repeated, ad nauseam, selling is one of the main jobs of the entrepreneur.

Leadership Means Selling

Over the last two weeks (here and here) I have posted articles about leadership. The reason being, leadership is an integral part of entrepreneurship. Today, I wanted to continue along the lines of leadership. But, I wanted to do it from a slightly different angle.

If you have ever been in a position of leadership, you know that all leaders sell. Leaders sell their values, ideas, vision, mission, etc. Sometimes the selling is little more than promotion. However, to be a truly effective leader, your sales approach should be tailored and relevant to your audience.

And, sometimes (often) it is an audience of one. Face-to-face, focused engagement, is an important element of leadership. Leaders know where they are going. But, they also take the time to get to know what their followers are looking for.

I recently read an excellent book, by Charles Green, titled Trust-Based Selling. I highly recommend giving it a read. In the interim, one very fortunately thing the author did was, he wrote a marvelous postscript, which does a beautiful job of summarizing the book.

Here is Green's postscript:

Very simply, the only way to be trusted is to be trustworthy. The only way to be trustworthy is to have your customers' best interests at heart. If you are trustworthy, you will come to be seen as trustworthy. And if you are seen as trustworthy, you will also become very profitable.

The paradox is, you can't set out to be profitable by being trustworthy–it destroys the concept. You actually have to care. Profitability is a byproduct; it disappears if you treat it as the sole goal.

You can measure the effect of trust and profitability in the long run, and you should. But you can't manage it in the short run without destroying it. The measure of trusted relationships is at the relationship level, not the transaction level. The right measurement of customer of profitability is the lifetime, not the quarterly, time frame. The right focus of customer profitability is systemic, not customer-by-customer.

The most influence comes when you stop trying to influence and just help. The best measurements come when you stop trying to measure everything and just do the right thing. The best relationships come from acting from our humanity, not from our spreadsheets. In the long run, spreadsheets will tell the tale; in the short run, act from your humanness.

It may be obvious that to trust someone, you have to take a certain amount of risk. There are no guarantees in trusting; that's the nature of the thing.

But it's also risky for the seller, the one aspiring to be trustworthy. It requires that you give up control over the short term of your secrets and your belief in tit-for-tat competitive economic models. It takes a bit of courage to behave in a trustworthy manner with no guarantee that every action will be met with an equally positive reaction.

And individually, they won't. But in the aggregate, they will. What you put out in trustworthiness gets more than repaid. You just don't know exactly when or from whom.

The ultimate risk–and return–lies in giving up control over your customers and clients. For your customers to trust you, you must trust them as well.

The "How to Be" Leader

Since I mentioned leadership last week, I figured, what the heck, let's talk about it again. Back in 1996, Frances Hesselbein published a wonderful article on leadership. The article was titled, "The How to Be Leader." You can read the entire article, below. (By the way, if the name Hesselbein rings a bell, it is likely because I have mentioned her before. Click here to read the previous post.)

Chief Executive magazine asked a number of corporate chief executives "to look over the horizon of today's headlines," "size up the future," and describe the most pressing tasks that lie beyond the millennium for chief executives. I was invited to do so as well. In my response I wrote, "The three major challenges CEOs will face have little to do with managing the enterprise's tangible assets and everything to do with monitoring the quality of: leadership, the work force, and relationships." After the magazine came out, a corporate leader wrote to me and said, "Your comment make great sense to me.I believe that the three challenges you describe are like legs on a stool. Yet I see leaders attending to just one, or perhaps two, of the legs!"

In the tenuous years that lie ahead, the familiar benchmarks, guideposts, and milestones will change as rapidly and explosively as the times, but the one constant at the center of the vortex will be the leader. The leader beyond the millennium will not be the leader who has learned of how to do it, with ledgers of "hows" balanced with "its" that dissolve in the crashing changes ahead. The leader for today and the future will be focused on how to be–how to develop quality, character, mind-set, values, principles, and courage.

The "how to be" leader knows that people are the organization's greatest asset and in word, behavior, and relationships she or he demonstrates this powerful philosophy. This leader long ago abandoned the hierarchy and, involving many heads and hands, built a new kind of structure. The new design took people out of the boxes of the old hierarchy and moved then into a more circular, flexible, and fluid management system that released the energy and spirit of our people.

The "how to be" leaders builds dispersed and diverse leadership–distributing leadership to the outermost edges of the circle to unleash the power of shared responsibility. The leader build a work force, board, and staff that reflect the many faces of the community and environment, so that customers and constituents find themselves when they view this richly diverse organization of the future.

This "how to be" leader holds forth the vision of the organization's future in compelling ways that ignite the spark needed to build the inclusive enterprise. The leader mobilizes people around the mission of the organization, making it a powerful force in the uncertain times ahead. Mobilizing around mission generates a force that transforms the workplace into one in which workers and teams can express themselves in their work and find significance beyond the task, as they manage for the mission. Through a consistent focus on the mission, the "how to be" leader gives the disperse and diverse leaders of the enterprise a clear sense of direction and the opportunity to find meaning in their work.

The "how to be" leader knows that listening to the customer and learning what he or she values–"digging in the field"–will be a critical component, even more so in the future than today. Global and local competition will only accelerate, and the to focus on what the customer values will grow stronger.

Everyone will watch tomorrow's leader, as we watch today's, to see if the business practices of the organization are consistent with the principles espoused by the leader. In all interactions, from the smallest to the largest, the behavior of the "how to be" leader will demonstrate a belief in the worth and dignity of the men and women who make up the enterprise.

Key to the societal significance of tomorrow's leaders is the way they embrace the totality of leadership, not just including "my organization" but reaching beyond the walls as well. The "how to be" leader, whether he or she is working in the private, public, or social sector, recognizes the significance of the lives of the men and women who make up the enterprise, the value of a workplace that nurtures the people who performance is essential to furthering the mission, and the necessity of a healthy community to the success of an organization. The wise leader embraces all those concerned in a circle that surrounds the corporation, the organization, the people, the leadership, and the community.

The challenges presented from outside the walls will require as much attention, commitment, and energy as the most pressing tasks within. Leaders of the future will say, "This is intolerable," as they look at the schools, at the health of children who will make up the future workforce, at inadequate preparation for life and work in too many families, at people losing trust in their institutions. The new leaders will build the healthy community as energetically as they build the healthy, productive enterprise, knowing that the high-performance organization cannot exist if it fails its people in an ailing community.

Today's concern about a lack of workers' loyalty to the corporation and a corresponding lack of corporations' loyalty to the workforce are sending a clear message to the leaders of tomorrow. The pit bulls of the marketplace may find that their slash-and-crunch and hang-on-till-death philosophies are as dead as the spirits of their troops. In the end, as organizations reduce their workforces, will it be the leader of a dispirited, demoralized workforce who leads the pack or will it be the new leader, guiding from vision, principle, and values, who builds trust and releases the energy and creativity of the workforce?

The great observers are not forecasting good times, but in the very hazards that lie ahead for leaders, remarkable opportunities exist for those who would lead their enterprises and this country into a new kind of community-a cohesive community of healthy children, strong families, good schools, decent neighborhoods, and work that dignifies. It is in this arena that leaders with new mind-sets and visions will forge new relationships, crossing all three sectors to build partnerships and community. This will take a different breed (or the old breed sloughing off the tired, go-it-alone approach), made up of leaders who dare to see life and community whole, who view work as an amazing opportunity to express everything within that gives passion and light to living, and who have the courage to lead from the front on the issues, principles, vision, and mission that become the star to steer by. Leaders of the future can only speculate on the tangibles that will define the challenges that lie ahead. But the intangibles, the leadership qualities required, are as constant as the North Star. They are expressed in the character, the power within, and the "how to be" of leaders beyond the millennium.

Leadership Over Fear

Terrible, terrible news. I think we have all seen what happened, last night, in Las Vegas. Hopefully you have been able to contact anyone you may know in the area. Being that the news is so fresh, I do not have any editorial comments to add. I simply feel sick to my stomach. Yesterday, I had planned to post a certain article, for today's blog post. Based on the title, alone, I think it is still appropriate to post that article.

The article is titled, "Leadership Over Fear." And, it was written by John Edwin Mroz. Here is the article, in its entirety:

President Franklin Roosevelt’s response to the national despair of the Great Depression was simple and direct: “The only thing we have to fear is fear itself.” Today, much of the world lives in fear. Many tens of millions of young people around the world fear they will never secure a job. Increasing numbers of people, including many in the middle class, fear the destruction of their way of life due to global warming, or the powerful and unwelcome influences of globalization. Others fear that the so-called “clash of civilizations” between the Muslim and non-Muslim worlds will become an inevitability. Ever-increasing terrorism around the globe, the spread of weapons of mass destruction, and a renewed fear of global pandemics have added new uncertainties about our safety. Fear breeds a search for simple truths, which in turn contributes to intolerance, alienation, and extremism. This problem is a global phenomenon. A world increasingly devoid of hope and trust is an increasingly dangerous and unpredictable one.

Peter Drucker reminded us a decade ago that the world had entered a prolonged period of profound change every bit as dramatic and turbulent as that ushering in the Industrial Revolution. Since 9/11, we have had to deal with an additional layer of unexpected complexity and uncertainty. Our world is an extremely unpredictable place in which asymmetric threats make it difficult for governments to guarantee the safety of their citizens and the well-being of their economies.

Franklin Roosevelt boldly attacked the hopelessness of his nation in his first inaugural address, when he declared “the only thing we have to fear is fear itself—nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance.” FDR convinced the despairing victims of the Great Depression that the only way to gain control of their lives was to overcome fear. He challenged the American people to move beyond their fears and inspired them to take those seemingly impossible first steps forward, thus rekindling the spirit and strength of the nation. In short, he led.

While tens of millions of Americans crowded around their radios, the new president, in one mighty stroke, empowered the populace to take risks and believe again that their lives could and would get better. Millions of self-appointed citizen-leaders rose to FDR’s challenge. As that first wave of risk-takers stepped forward, the nation pulled itself out of its deepest abyss since its Civil War some seventy years before. The willingness of one leader to stare down fear worked because he was able to challenge countless would-be leaders across the nation to join him. And those leaders joined their president not only in overcoming the Great Depression but also in fighting and winning the world war that followed.

In today’s globalized world, top-down leadership by politicians and governments is simply not sufficient to cope with the challenges of keeping the global ship afloat in such turbulent waters. The public sector must partner with businesses and the social sector in meeting these challenges. A key task is to identify, mobilize, and challenge naturally embedded leaders in our societies to stand up and lead in a world that is increasingly seen by its citizens as being adrift. There are four things we must do: first, natural leaders in a world of fear and change must step up and lead themselves. Second, such women and men must imagine the possibility of change. Third, they must seek out other natural leaders who, like themselves, have had enough of watching and are willing to assert themselves. Fourth, they must set a pace that fits the context.

I am heartened to know that this same pattern of empowering naturally embedded leaders to step forward and take the risks of leadership is alive and well around the world—even in places where fear is the norm and hope a fleeting dream. For example, six years ago in the war-ravaged former Yugoslavia, the EastWest Institute, an independent and privately supported international “think and action tank,” recruited a dozen and a half women and men to try to do something that governments and experts said could not be done. Following years of bloody killing based on religious and ethnic lines, families living in these border areas faced their own great depression with no possible hope of life getting better. Moreover, their hatred for families just a town away was intense. They could not forget memories of the wanton killing and destruction inflicted upon one another just a decade previously. Our team of women and men had a single common mission: to mobilize citizens in these war-ravaged regions to work together across borders to build trust and help local communities begin the painful journey of exiting their world of poverty and hopelessness. To accomplish this goal would require our leaders to help build bridges over many years’ growth of deep-rooted fears, and to inspire people to themselves become leaders within their communities. What they accomplished during the past six years is well-known to the local populations and to governments all over Europe. It’s a story of enormous hope and testimony.

As extraordinary as I think each one of my colleagues is as a human being and a leader, they are “ordinary” women and men. One had no university education; another was a young mother of two small children living in a town where some of the heaviest fighting took place. The first was a Christian, the second a Muslim. Others came from other tough parts of the Balkans, with a few from European countries or the United States. All were driven by a personal commitment to do something larger than themselves. Most of these leaders took on serious personal risks, from the real possibility of becoming alienated from their own communities to endangering their personal safety—all as they worked to build bridges of trust between the two sides. Leaving their war-torn communities was unthinkable. They were men and women who had had enough and were ready to fight fear by taking the risks of going where others feared to go.

I sat with twelve of these brave leaders recently in a remote village hall that billed itself as a restaurant. As the evening progressed, I asked each to explain exactly how they had succeeded in bringing together communities devoid of hope and trust. I told them I thought the key must have been their ability to find others like themselves who shared a common vision for a future of peace. They respectfully begged to differ. They reminded me that for the longest time, no one in any of their communities would speak of peace or a common vision. Everyone believed that more violence was imminent.

Their initial success came in finding individual men and women within their communities who, like themselves, had come to the conclusion that the only way out of the quagmire of poverty and isolation was to try to find somebody—anybody—who also was tired of this hopelessness and wanted change. A tough initial hurdle was persuading communities to trust that the sponsors of this cross-border work were truly committed to impartiality and had no hidden agendas. Would we not take sides when the chips were down? Our leaders in the field and the EastWest Institute itself were tested once again.

The story of how our leaders were able to inspire everyday people to face down their own very real fears and to take leadership roles within their communities is instructive no matter what kind of organization you lead. The smallest incremental steps taken by the local populace became their building blocks to larger initiatives. Because they listened and continued to talk about and probe their most basic common interests, barriers continued to fall. When one previously hostile man proposed that he might let his son play in a sporting event for younger children with boys of a neighboring village of a different religious belief, our team on both sides of that border decided to try to organize a soccer match for younger children. Many months later it happened, although most families escorted their children to the playing field with weapons at their side. Several games later, they came without arms. Eventually they would bring food from home and share a community table after the match.

The initial risks people were willing to take were ones based on plain old self-interest. Could we together find the source of a polluted stream that was tainting drinking water for families on both sides of the border? Could children be given a normal experience of playing sports with other children? Success came by having our staff locally based and of the community; by not rushing; and by being fiercely independent as a sponsoring institution, remaining outside of the politics and focusing solely on the bottom line— improvement of the human condition. In the end, our teams were able to accomplish things no one dreamed possible in three difficult areas of the former Yugoslavia. Their inner drive and sense of purpose at first was tolerated, then came to be respected and even embraced by a growing number in the communities they served.

As I listened to their passionate discourse that evening, I thought about how diverse these leaders and their backgrounds were. In most cases, their success was due not to their particular educational backgrounds or special training, nor to their nationality, religion, family status and upbringing, age, or gender. It seems the only thing that really mattered was that these leaders shared innate leadership strengths springing from a fierce inner drive to face down fear and be part of a force for change that was larger than themselves. This resonated in others who stepped forward, every bit as much leaders as the initiators.

I asked our team of leaders whether their experience had taught them lessons that could be applied elsewhere—perhaps to how we in the West could do better in bridging the growing divide between Muslims and non-Muslims globally. Their enthusiasm then went to an even higher level, and the ideas started spilling forth. At the core was a baseline of shared values, especially a desire for fairness and integrity in others. I wondered what would have happened if we in the Institute had not decided to face our own fears and undertake the seemingly impossible task of cross-border work in the Balkans. In what kind of world would these women and men have found themselves? I thought of how comfortable President Roosevelt would have been at the table that evening some seventy years after he spoke his words that inspired so many.

Leaders willing to take risks to overcome fear are all around us. Therein lies our hope for dealing with the seemingly overwhelming challenges on our planet in this twenty-first century. A key leadership challenge today is how to mobilize sufficient numbers of these naturally embedded leaders across the divides that breed fear and extremism and threaten our future and that of our children. It all starts with our willingness to face up to our own fears, stare them down, and find the emerging natural leader within each of us.