Rules For a Perfect Day

May 16, 2008 by nathenhache

Just for today…

I will try to live and delight in the reality of being alive. My past is forever gone, my future an uncertainty, so I will be happy and thankful for each moment.

I will not allow negative input into my mind…happiness is a choice and I choose to be happy.

I will be thankful to God for my health, my loved ones, my business, and my country. I will also be thankful for any pain in crisis that helps me grow because God has said, be thankful in all things.

I will take care of my body, realizing the importance of the words moderation and balance, knowing that as I bring my flesh under control, how much easier it will be to control my will and my actions.

I will treat everyone I meet today the way I would like to be treated. I will strive to have them like themselves better when they’re with me.

I will avoid gossip, jealousy, and negative thinking. Most people don’t think about what they think about. Today, I will make a conscious effort to hold loving and beautiful thoughts in my mind.

I will write down my priorities; thinking of my loved ones and my responsibilities. I may not get everything done, but I will do the most productive thing possible at every given moment.

I will strive to humble myself before others, controlling my ego and making other people feel important.

I will spend time in study, learning how to better serve my fellowman. I know my growth in all areas is in direct proportion to the service I give to others.

I will not take rejection personally. I am first and foremost in the people business and, thus, realize they can only reject my proposal and not me. I will keep on keepin’ on.

I will spend time in prayer, asking God to let others see the light of His shining love through me.

 

Author: Tom Hopkins www.tomhopkins.com

Rules To Live By

May 16, 2008 by nathenhache

·         It ain’t as bad as you think. It will look better in the morning.

·          Get mad, then get over it.

·         Avoid having your ego so close to your position that when your position falls, your ego goes with it.

·         It can be done!

·         Be careful what you choose. You may get it.

·         Don’t let adverse facts stand in the way of a good decision.

·         You can’t make someone else’s choices. You shouldn’t let someone else make yours.

·         Check small things.
Share credit.

·         Remain calm. Be kind.

·         Have a vision.

·          Don’t take counsel of your fears or naysayers.

·         Perpetual optimism is a force multiplier.

- General Colin Powell’s Rules to Live By

 

As a Professional Salesman, Understanding People’s Natural Fears

May 16, 2008 by nathenhache

Think for a moment about what the greatest enemy is to the process of helping people come to a decision that’s truly good for them and getting an agreement for them to own your product or service. What is it that jumps in and brings presentations that were previously sailing smoothly along to a screeching halt? You may think it’s the competition or maybe the financial aspects of your proposal. Perhaps you think it’s the prospective client’s inability to make a decision.

  

Well, if you think any of those things, you are right. But, with selling being what it is — a bottom line business — let’s dig deeper and find the bottom line of what lies between you and your ‘future client’ coming to an agreement.

  

If you look at all the enemies you and your associates can come up with, you’ll find they have a common denominator. That common denominator is a thing called FEAR .

  

Fear is the greatest enemy you’ll ever encounter as a professional salesperson. Your fears, the prospect’s fear, market and trend fears and so on.

  

What do we fear? As salespeople, we fear saying or doing things that may halt a potential sale. Hopefully, you’ll learn to recognize and conquer your fears through continual education, practice, drill and rehearsal of strategies and tactics that will keep you ahead of the pack.

  

A tough part of our jobs as salespeople is in helping others understand and overcome their fears so we can earn the opportunity to help them make decisions. Fear is what builds that wall of resistance we so often run into. You must master the skills to either climb over or break through those walls.

  

When you recognize your potential clients’ fears as barriers to giving them excellent service, you are then ready to learn how to dismantle that wall, one brick at a time, thus gaining their confidence and trust. Your goal is to get them to like you and trust you by serving them with warmth and empathy. The first step in accomplishing this is to show them you understand and offer reassurance and a bit of education.

  

Here are some other common, normal and potentially paralyzing fears that many people face in decision-making situations and what you should do about them.

  

1.       Your prospective client is initially afraid of you.

 

This is simply because you are a salesperson. I think you’ll agree with me that most people do not generally accept salespeople with open arms. Even if you are going to help someone you already know — a friend or acquaintance or even a relative — when you get down to business, certain fears will arise. It’s bound to happen in 99% of your presentations. (I’ll give you a 1% non-fear situation with your parents or grandparents, simply because in most cases they’ll believe in you and trust you no matter what role you play with them.) What do you do about the others?

  

Accept it. There are some people who are going to be afraid of you just as there are patients who are panic-stricken when they have appointments with doctors or dentists. What you need to do to conquer the fear of salespeople is to master the skill of putting people at ease. Learn to use a relaxed manner and tone of voice. Use rapport-setting comments and questions that show them you are interested in the people who own the home, not just in moving product.

  

2.       They have a fear of making a mistake.

 

We all have that one, don’t we? We’ve all made decisions we’ve later regretted. Perhaps we relied on someone when we weren’t sure of his or her knowledge on the matter. When you are the salesperson, your prospective client must recognize you as an expert. You know this business. You should have knowledge about aspects of your product or service that they haven’t even considered. To help people overcome the fear of making a mistake, you need to lay out all the details they require in an easy-to-understand manner. Once they gain confidence in their knowledge, making a decision will be easy.

  

3.      They fear being lied to.

 

Face it, the selling profession is still suffering from the antics of those less-than-scrupulous folks who used to be known to say anything to ‘close the deal.’ This is where your literature, testimonial letters and referrals come in. People are more likely to believe the written word than the spoken word so let them read the good news about your product or service for themselves. Let them see how happy the people you currently serve as clients are with the product and your service in particular.

  

4.      They’re afraid of owing money.

 

Most people have a tremendous fear of debt. If your product or service requires financing of some sort, you’ll have to be ready to address this concern. Covering the financial details very carefully is key here.

  

You’ll also encounter those people who will try to haggle with you over any investment. Most people wouldn’t attempt to negotiate with a company or financial institution so you need to address financial details by referring to the lender once you reach that point. Be ready, though, for those who will try to negotiate with you about your fee. This challenge may appear in many variations, depending upon the negotiating skills of your clients. They may go at it in a roundabout way such as saying, “Another company we talked with will charge a lot less.” When you hear that remark, here’s what I recommend you say, “You know, I’ve learned something over the years. People look for three things when they spend money. They look for the finest quality, the best service, and of course, the lowest investment. I’ve also found that no company can offer all three. They can’t offer the finest quality and the best service for the lowest investment and I’m curious, for your long-term happiness, which of the three would you be most willing to give up? Fine quality? Excellent service? Or the lowest fee?” Most will respond that quality and service are of utmost concern, which overcomes the concern about the fee. Your next move would be to re-iterate everything you will do for them. Again, sell the value of the service you and your company provide.

  

5.      Many people are afraid of losing face.

 

Have you ever made a poor decision that was big enough that most of your friends and family members knew about it? If you have, you know exactly what I mean here. If not, believe me when I say it can be totally demeaning and embarrassing. Often a situation like that makes you feel like a child again — insecure and powerless.

  

For that reason, many potential clients will stall making the decision to own your product or service. Knowing that this could be a challenge, your primary goal should be to help them feel secure with you. Let them know they are not relinquishing total power to you. You are simply acting in their behalf, performing a service they need to have done.

  

6.      They are afraid of the unknown.

 

A lack of understanding is a reasonable cause for delaying any transaction. If your company has national name recognition, that should help eliminate some of this fear. If you work for a local company, I suggest you work with your fellow agents to earn a great local reputation. It will save you a lot of time over the years.

  

I have long noticed that former teachers often make the best salespeople. Correction, good former teachers almost always achieve champion status when they make the switch to careers in sales. Selling is little more than a matter of educating the people on the benefits of doing business with you. Once you educate them, they will feel confident in making a wise decision.

  

Some of seller’s most common fears may seem irrational to you, but remember, you are an educated, professional expert. You have eliminated the unknown from being a potential fear through your own education and personal experience in the business. You have already been involved in more transactions in your career than the average person will be in his or her entire lifetime (unless they join the ranks of sales professionals themselves.)

  

  1. Your decision-makers may have had bad past experience with a salesperson or with a product or service like yours.

 

Have they ever made a decision like this before? If not, it’ll be like going back to kindergarten for the teacher in you. You’ll have to bring them up to speed on exactly what to expect before you can expect them to make a decision.

  

If they have made a decision like this before, what kind of experience was it for them? You need to ask the proper questions to get those answers. If they hesitate to tell you, you may assume it was a bad past experience and you’ll have to overcome a lot more fear than if they’ve never owned a product like yours before.

  

  1. Their fear may be based on third party information.

 

Someone they admire or respect may have told them to keep their existing product, or to wait for a sale. That third party will stand between you and them until you convince or persuade them that you can help them more than that person because you are the expert. You’ll have to work hard to earn their trust. You may even have to enlist the aid of some of your past happy clients as references.

  

You must be prepared to do whatever it takes to replace any fears they may have with confidence in the decision they’re making and in the service you will provide.

  

No one wants to handle a transaction in which the client may be dissatisfied with the result. Believe me, there will be cases where the grief you will get from that client won’t be worth the fee you’ll earn on the product or service. It doesn’t happen often, but you must go into every presentation with a very curious interest in the who, what, when, where and why of the situation. When you’ve satisfied yourself that this decision is in their best interest, then it’s your duty as an expert in your industry to convince them that this decision is truly good for them.

Conclusion

There are many factors to consider when selling to your potential client. Understanding your client’s fears and disarming their fears will help you to earn the clients trust, get the sale, and grow your business. Understanding your client’s fears is just one of the many factors in selling. You have to consider moods, budget, objections, and good salesman are closures. Investing time and perhaps money in sales seminars, tapes, and/or books on strengthening your closing skills are all wise investments.  Tapes and books by Tom Hopkins and Zig Ziglar are great people to learn from incase you haven’t heard of them.

Source- www.tomhopkins.com

Formulas for Success

May 16, 2008 by nathenhache

1.       What is your financial plan? Do you have one? Is your financial plan succeeding?

 

2.       How determined are you to succeed? How determined are you to succeed financially? What time and study do you devote to this task?

 

3.       A part of what you earn is yours to keep. Put aside 10% of what you earn before you spend on your expenses.

 

4.       Do you seek advice from experienced and competent people about investments?

 

5.       Learn from your mistakes.

 

6.       Do you consider carefully where you can invest your profits?

 

7.       Do you review the successes and failures of your business history, so as to plan future investments in profitable ways?

 

8.       How do you make your money work for you? Does your money multiply and work for you?

 

9.       The 10% of what you keep should be used for investments. Remember a part of what you earn is yours to keep.

 

10.   What kind of desire do you have to find new and positive ways to bring you success and prosperity? Is your desire for success a burning desire? And how will you put that desire into action?

 

11.   Where are the opportunities for success in your life right now? Are you open to new opportunities when they present themselves? What steps will you take to seize your opportunities?

 

12.   How strong is your purpose? Consider the goals you have in your life and whether you are reaching them. This will tell you if you are reaching them.

 

13.   Do you see failure as a new opportunity? Failure exists only in the grave. A person who is still alive has not yet failed. Do you believe this? Do you see mistakes as a dead end or a chance?

 

14.   Ability of friends to help us or hinder us to achieving our life’s goals. Seek friend friends that will encourage you to achieve. We are known by the company we keep. Do your relationships enhance and enrich you as a human being? Or do they hold you back?

 

15.   We become whatever we embrace. Positive or negative. Which one do you embrace?

 

Conclusion

 

Most of these suggestions were written in question form for your own reflection and application in your life.

 

Derived from “The Richest Man in Babylon” & “The Magic Story”

 

Tips on Hiring Smart

May 16, 2008 by nathenhache

All entrepreneurs can agree that there is no substitute in surrounding yourself with quality individuals for the company. Entrepreneurs will also agree that it is costly to surround yourself with individuals that are not in the best interest of the company. How do you protect yourself? Here are four suggestions.

Tough face-to-face interviews

Most anyone you are going to interview for a key position is going to have fairly good oral skills to say the least, especially salespeople. During the interview you have got to get to the heart of the matter. What specifically has the person done and accomplished during the last few years? Use the interviewee’s resume as a guide and ask open-ended questions to dig out exactly what the candidate has done in the past. Ask for details. Make notes. Clarify discrepancies. Question gaps, and identify accomplishments. When you are done with the interview you should understand the interviewee’s proven record and his or her feeling about it. If you don’t feel comfortable extracting such information, then turn it over to another person that is.

Reference Check

Call two or more of their references and ask them to tell you about the candidate. See if their information about the candidate matches your notes. Try to get additional information about the candidate’s attitude and personality. If you are operating a smaller company, chemistry between individuals is important. The more you know about a person the better you will be able to guide him or her to succeed in the company.

Scenario questioning

Ask your potential candidates some “what if” questions. For example:

  • How would you increase the company’s sales?
  • Tell me your approach to inventory control
  • How would you go about assuring that there will be zero defects when our products are shipped to our customers?

There are many scenarios that can be scenario questions depending on what the company is. Scenario questioning can help you separate the people who know what they are talking about, and those who are playing it by ear and hope they can handle whatever arises. It’s the difference between proven experience and potential. It’s okay to hire potential as long as you know what you are getting, and you are willing to fill in for the lack of experience in one way or another to get done what needs to get done.

Multiple Interviews

Now matter how bright you are as an entrepreneur, you will tend to hire in your own image. We all do it.  It’s wise to gather other peoples reactions to candidates you are considering hiring. It’s possible that some of your colleagues are better at sniffing out flaws or weaknesses in people.

Conclusion

A new enterprise must have people with needed skills in its early days. An entrepreneur must look for properly skilled people who want more than a job. The best way to judge what a person can do and wants is to assess their actions in the recent past. Once that person is onboard, he or she influences, or is influenced by the company culture. It takes a conscious effort on the entrepreneur’s part to define, cultivate, and maintain a discrete culture as new members join the company. A company’s culture may serve as a sail, or an anchor for the enterprise. Invest time and energy in your company’s culture. Hire Smart.

Derived from “Entrepreneuring: The 10 Commandments for Building a Growth Company.”

 By

Steven C. Brandt

6 Mistakes Entrepreneurs Make

May 15, 2008 by nathenhache

1.      The founding group is formed spontaneously

When forming a partnership, make sure you and all involving parties are in the right state of mind. Forming a partnership under the influence of alcohol isn’t the smartest thing to do. But I will be surprise if a successful partnership was formed because of one intoxicating Friday night. Anything is possible right. Take the time to understand all involving parties’ interests, and goals. If everyone interests and goals are mutual, then there is a possible making of a successful partnership.

2.      Automatically using personal or family lawyers, insurance agents, CPAs, and bankers as advisers

Sometimes professionals who are family don’t have the professional interest and proven experience to help you build your business. But since their family, it’s very difficult to use services of someone else. And it may be in your best interest for the business sake to seek services of a professional. We all heard the cliché saying, “Business is business.”

Interview Insurance agents, CPA’s, bankers, and attorneys who are developing a relationship with companies. You can find these professionals by referrals. Interview them, discuss fees, and check their references, then decide if they have the answers you are looking for and if you want them involved in your business. You don’t need to know all the answers; you just need to know where to go to them.

3.      By nature entrepreneurs/ people tend to listen attentively to themselves

 

In forming a new enterprise the parties involve should bring a balanced, thoughtful view in a decision making process. It’s good brainstorming when everybody gets involved and shares their inputs. Listening attentively to yourself is easy, listening to others is a skill in itself that goes a long way.

 

4.      Giving stock or stock options before the company proving its long-term value

 

Cash is almost always tight in the early days of a new enterprise. Cash is also needed to turn the wheels of your business. Offering stock options in the early stages without stability is a bad idea; because you may end up with angry stockholders/owners and you may have to repurchase the stock when the company can least afford to buy back shares.

 

After the company is beyond the point of initial stability and all involved parties have given deep, detailed, and long-term thought the company can consider issuing stocks.

 

5.      The board of directors consists solely or primarily of insiders company officers, their spouses, and friends or relatives

 

The purpose of the board is to aid and replace the CEO of the enterprise while maximizing shareholders wealth. Helping the CEO optimize the financial performance of the company is unlikely to be achieved from insiders, spouses, friends, or relatives. A strong board that is seasoned can be your best source to managing and growing your business.

 

6.      People with different motives are on the same boat

 

Some people are seeking long-term capital gains. This usually takes stock to build net worth. Others are seeking a comfortable annual income. What ever the case may be, a smart entrepreneur illuminate the driving force in each individual and think hard if there is compatibility across the team.

 

Conclusion

 

A new company is like an egg shell. It needs a well developed internal system to withstand the pressures of entering and competing in the marketplace. The entrepreneur can achieve this by surrounding himself with dedicated people that qualify in the particular field of the company. Entrepreneurs face the task of gathering the right people. Avoid these mistakes and surround yourself by other successful people and learn from them.

 

Adapted from “Entrepreneuring: The 10 Commandments for Building a Growth Company” By Steven C. Brandt

 

 

 

Four Key Skills to Master Now

May 15, 2008 by nathenhache

1.)    Public Speaking

 

When it comes to fear, public speaking ranks right up there with death. But when it comes down to it, there is nothing to be afraid of as long as you got a game plan, says Richard Greene, author of “Words That Shook the World.”

 

·         Prepare your head

 

 “Be physically energized and centered before you walk in the room,” says Greene. If your energy level is low, do some physical activity beforehand to invigorate yourself. Take deep breaths to calm any nervousness.

 

·         It’s not a performance

 

“People have a flawed perception of what speaking is about,” says Greene. “The greatest speakers, like F.D.R., Reagan, and Clinton, approach it as a conversation with the audience.”

 

·         Podiums are for dictators and high school principles

Standing behind a podium disconnects you from the audience and may worsen fragile nerves. Instead, grab the mike and wander the stage or room, or at least step to the side of the podium and lean against it.

 

·         Dress the audience

 

Picturing the audience naked is actually “one of the worst things you can do,” Greene says. How comfortable would you feel chatting with the naked guy in the gym locker room?

 

·         Eye contact is your friend

 

“You’re speaking to individual people,” Greene says. Looking at them one by one shrinks the room.

 

·         Don’t sweat the questions

 

If you’re stumped, “regard it as a positive,” Greene coaches. Seize the opportunity to talk about your team: “We’re lucky to have one of the real experts on that subject. I’ll get you in touch with him or her later.”

 

2.)    The art of negotiation

 

In pursuing a high-stakes deal or just asking for a raise, using the right phrases matters. Herb Cohen, author of “Negotiate This,” and advisor to presidents Carter and Reagan, shares his best lines.

 

·         “How did you come up with that number?”

 

 Opens a window into the other side’s thoughts.

·         “Where were we?”

        Look like you care, but not that much.

·         Let me check with my wife.”

 

Or my husband, my boss, my banker. Stops you from saying yes prematurely

 

·         “Huh? Wha?”

 

Pretend you don’t understand, and others will talk.

 

·         If things change, give me a call.”

 

Be willing to walk away–and put the burden on them.

 

3.)    Memory Games

 

Have you ever confused a Don with a John? Benjamin Levy, author of Remember Every Name Every Time: Corporate America’s Memory Master Reveals His Secrets, lays out his “catch and match” technique:

 

·         Always introduce yourself first.

Execs can be so intent on selling themselves or their ideas that they fail to really make an impression by remembering someone’s name. Instead get your own intro out of the way, fast. Then you can focus on the other person.

·         Confirm and repeat.

In the first 20 seconds, make him feel there’s no one else in the world.

·         Connect the name to your brain.

When you meet a guy named Bill, start thinking of other Bills you know. Like Bill Clinton. Or, “Oh, my uncle Bill.” Or a duckbill or a dollar bill. We need reminders.

·         Use the name three times.

No third-rate salesman rap: “Well, John, great to see you, John.” Spread it out–once to confirm you have the name right, then in mid-conversation, and again when you say goodbye.

4.)    Speed Reading

Slow readers not only waste time but their comprehension suffers, says H. Bernard Wechsler of the Speed Learning Institute of America. Here are his five tips for burning up the pages.

·         Never read without a pen.

By moving the tip of a pen beneath a line, your eyes will instinctively follow, speeding you up. On a computer, run the onscreen cursor under the text.

·         Pick up the book.

Reading at a 45-degree angle is easier on the eyes than off a flat surface.

·         Relax your eyes.

Focus on full lines, not specific words, using peripheral vision. Move your head, and pay attention to the upper half of letters.

·         Kill that voice in your head.

Silently repeating words slows you down. To break the habit, try quietly humming.

·         Keep on truckin’.

Resist the urge to “regress” and reread.

Conclusion

Improving on these skills, or any other skills increases your value as a person, and all are beneficial in the game of life.

As seen as Fortune Magazine, October 30, 2006

How to Make Great Decisions

May 14, 2008 by nathenhache

(FORTUNE Magazine) – “Nothing is more difficult, and therefore more precious, than to be able to decide,” Napoleon said. The Frenchman definitely made some major calls, such as invading Russia. Now that was a decision. A big, cold decision 1,000 miles long, with no food, bad clothes, and a lot of unfriendly locals. And you see what Napoleon was talking about. Some decisions leave you wearing an emperor’s crown; others leave you in pajamas on Elba.

It’s horrifying, really. If there’s one thing we humans abhor, it’s uncertainty. The Romans dealt with it by worshiping Fortuna, goddess of randomness. The Persians had another approach, which Herodotus recorded around 430 B.C.: “If an important decision is to be made, they discuss the question when they are drunk. The following day, the master of the house submits their decision for reconsideration when they are sober. If they still approve it, it is adopted; if not, it is abandoned. Conversely, any decision they make when they are sober is reconsidered afterwards, when they are drunk.” They were mysterious, the ancients. Or maybe just loaded.

 

For modern decidophobes, business is a bad hiding place. Strategies, careers, companies–they’re all made of decisions the way glass is made of sand. The quality of your decisions is what makes you valuable. And the hardest ones roll uphill: A CEO’s job, it’s been said, is to make the decisions that can’t be delegated.

You’d think people would give serious thought to such a serious business. But most of us get … what? Campfire stories about Johnson & Johnson’s pulling Tylenol from the shelves. Warmed-over parables about visionaries who saw the future. Shopworn examples of famous blunders (the Edsel). The lesson? Go with your gut except when it’s wrong. And don’t be stupid.

Hey, thanks. But what am I to do with this memo telling me to “reduce headcount” in my department? That’s where this issue comes in. Part two of FORTUNE’s 75th-anniversary celebration is devoted to decisions–and to helping you make better ones.

We’re serious about this. Yes, we wanted to create a package of delectably good reads. But visiting a flaming Colorado mountainside, or the hallways of the Pentagon, or the Siberian oil frontier, isn’t just a way of bringing decision-making alive. You’ll come away with a set of ideas, tools, and questions that you can carry into any decision-making context.

Now a question for you: Are you serious about decisions? Start with the Latin decidere. It means, literally, “to cut off.” Decisions force us to foreclose other opportunities–jobs not taken, strategies never attempted, options unpursued. Would that sales gig in Houston have worked out better? You’ll never know.

Most of us will do just about anything to avoid uncertainty. We might defer decisions endlessly (thus surrendering what power we do have to control our own destinies) or, like ripping off a Band-Aid, pull the trigger all at once. Making a call takes guts. It means inviting uncertainty into your home, offering it a drink, and asking it to stay for dinner. Uncertainty is a creepy houseguest, but not your captor.

If surmounting your anxieties is step one, step two is letting go of your inner perfectionist because there is no such thing as a perfect decision-maker. Even if you had all the information in the world and a hangar full of supercomputers, you’d still get some wrong.

But there’s a big difference between a wrong decision and a bad decision. A wrong decision is picking Door No. 1 when the prize is actually behind Door No. 2. It’s a lousy result, but the fault lies with the method. A bad decision is launching the space shuttle Challenger when Morton Thiokol’s engineers predict a nearly 100% chance of catastrophe. The method, in this case, is no method at all.

The distinction is important, because it separates outcomes, which you can’t control, from process, which you can. Wrong decisions are an inevitable part of life. But bad decisions are unforced errors. They’re eminently avoidable–and there are proven techniques to avoid the most predictable pitfalls.

There is, of course, no one archetypical decision. Some are drawn out and deliberative, others made at the flick of a switch. If you find yourself at the receiving end of an Andy Roddick serve, for instance, pausing to weigh your options (forehand? backhand? law school?) is not an option. You have to jump, right now. For bond traders too, the time between analysis and action lasts milliseconds.

Now imagine you’re responsible for a whole floor of bond traders. Orchestrated well, their decisions mean a great quarter; guided poorly, they’ll dig a billion-dollar hole. You can’t tell them what to decide, but you can train them how to decide, and select who does the deciding. That’s how you build a decision-making machine–like GE or the Marine Corps. “If you explain to your subordinates the end state you want and the timeline you’d like to get there,” says Gen. Peter Pace, “you can observe progress, provide resources, and know they’re going to do things to get you to the goal. Maybe differently than you would do it. Often better. Sometimes worse. But inside the lines you’ve painted.”

Some of our decisions will outlast us. We have those fading Polaroids because Edwin Land, in 1943, decided to answer his daughter’s question, “Why can’t I see the picture right away?” We have U.S. Steel because Andrew Carnegie wrote “$480 million” on a piece of notepaper and J.P. Morgan said, “I accept this price.” And in 1929 a woman named Lila Luce was given a list of names and picked one: Fortune. Her husband, Henry, had favored Power or even Tycoon. But her decision held–and lives on, more than 1,000 issues later

As seen an Fortune Magazine, June 27th, 2005

By JERRY USEEM

 

What It Takes to Be Great

May 14, 2008 by nathenhache

Research now shows that the lack of natural talent is irrelevant to great success. The secret? Painful and demanding practice and hard work

(Fortune Magazine) — What makes Tiger Woods great? What made Berkshire Hathaway (Charts) Chairman Warren Buffett the world’s premier investor? We think we know: Each was a natural who came into the world with a gift for doing exactly what he ended up doing. As Buffett told Fortune not long ago, he was “wired at birth to allocate capital.” It’s a one-in-a-million thing. You’ve got it - or you don’t.

 

Well, folks, it’s not so simple. For one thing, you do not possess a natural gift for a certain job, because targeted natural gifts don’t exist. (Sorry, Warren.) You are not a born CEO or investor or chess grandmaster. You will achieve greatness only through an enormous amount of hard work over many years. And not just any hard work, but work of a particular type that’s demanding and painful.

Tip Sheet: Perfect Practice

1. Approach each critical task with an explicit goal of getting much better at it.

2. As you do the task, focus on what’s happening and why you’re doing it the way you are.

3. After the task, get feedback on your performance from multiple sources. Make changes in your behavior as necessary.

4. Continually build mental models of your situation - your industry, your company, your career. Enlarge the models to encompass more factors.

5. Do those steps regularly, not sporadically. Occasional practice does not work.

 
 
 
 
 
   
 
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Buffett, for instance, is famed for his discipline and the hours he spends studying financial statements of potential investment targets. The good news is that your lack of a natural gift is irrelevant - talent has little or nothing to do with greatness. You can make yourself into any number of things, and you can even make yourself great.

Scientific experts are producing remarkably consistent findings across a wide array of fields. Understand that talent doesn’t mean intelligence, motivation or personality traits. It’s an innate ability to do some specific activity especially well. British-based researchers Michael J. Howe, Jane W. Davidson and John A. Sluboda conclude in an extensive study, “The evidence we have surveyed … does not support the [notion that] excelling is a consequence of possessing innate gifts.”

To see how the researchers could reach such a conclusion, consider the problem they were trying to solve. In virtually every field of endeavor, most people learn quickly at first, then more slowly and then stop developing completely. Yet a few do improve for years and even decades, and go on to greatness.

The irresistible question - the “fundamental challenge” for researchers in this field, says the most prominent of them, professor K. Anders Ericsson of Florida State University - is, Why? How are certain people able to go on improving? The answers begin with consistent observations about great performers in many fields.

Scientists worldwide have conducted scores of studies since the 1993 publication of a landmark paper by Ericsson and two colleagues, many focusing on sports, music and chess, in which performance is relatively easy to measure and plot over time. But plenty of additional studies have also examined other fields, including business.

No substitute for hard work

The first major conclusion is that nobody is great without work. It’s nice to believe that if you find the field where you’re naturally gifted, you’ll be great from day one, but it doesn’t happen. There’s no evidence of high-level performance without experience or practice.

Reinforcing that no-free-lunch finding is vast evidence that even the most accomplished people need around ten years of hard work before becoming world-class, a pattern so well established researchers call it the ten-year rule.

What about Bobby Fischer, who became a chess grandmaster at 16? Turns out the rule holds: He’d had nine years of intensive study. And as John Horn of the University of Southern California and Hiromi Masunaga of California State University observe, “The ten-year rule represents a very rough estimate, and most researchers regard it as a minimum, not an average.” In many fields (music, literature) elite performers need 20 or 30 years’ experience before hitting their zenith.

So greatness isn’t handed to anyone; it requires a lot of hard work. Yet that isn’t enough, since many people work hard for decades without approaching greatness or even getting significantly better. What’s missing?

Practice makes perfect

The best people in any field are those who devote the most hours to what the researchers call “deliberate practice.” It’s activity that’s explicitly intended to improve performance, that reaches for objectives just beyond one’s level of competence, provides feedback on results and involves high levels of repetition.

For example: Simply hitting a bucket of balls is not deliberate practice, which is why most golfers don’t get better. Hitting an eight-iron 300 times with a goal of leaving the ball within 20 feet of the pin 80 percent of the time, continually observing results and making appropriate adjustments, and doing that for hours every day - that’s deliberate practice.

Consistency is crucial. As Ericsson notes, “Elite performers in many diverse domains have been found to practice, on the average, roughly the same amount every day, including weekends.”

Evidence crosses a remarkable range of fields. In a study of 20-year-old violinists by Ericsson and colleagues, the best group (judged by conservatory teachers) averaged 10,000 hours of deliberate practice over their lives; the next-best averaged 7,500 hours; and the next, 5,000. It’s the same story in surgery, insurance sales, and virtually every sport. More deliberate practice equals better performance. Tons of it equals great performance.

The skeptics

Not all researchers are totally onboard with the myth-of-talent hypothesis, though their objections go to its edges rather than its center. For one thing, there are the intangibles. Two athletes might work equally hard, but what explains the ability of New England Patriots quarterback Tom Brady to perform at a higher level in the last two minutes of a game?

Researchers also note, for example, child prodigies who could speak, read or play music at an unusually early age. But on investigation those cases generally include highly involved parents. And many prodigies do not go on to greatness in their early field, while great performers include many who showed no special early aptitude.

Certainly some important traits are partly inherited, such as physical size and particular measures of intelligence, but those influence what a person doesn’t do more than what he does; a five-footer will never be an NFL lineman, and a seven-footer will never be an Olympic gymnast. Even those restrictions are less severe than you’d expect: Ericsson notes, “Some international chess masters have IQs in the 90s.” The more research that’s done, the more solid the deliberate-practice model becomes.

Real-world examples

All this scholarly research is simply evidence for what great performers have been showing us for years. To take a handful of examples: Winston Churchill, one of the 20th century’s greatest orators, practiced his speeches compulsively. Vladimir Horowitz supposedly said, “If I don’t practice for a day, I know it. If I don’t practice for two days, my wife knows it. If I don’t practice for three days, the world knows it.” He was certainly a demon practicer, but the same quote has been attributed to world-class musicians like Ignace Paderewski and Luciano Pavarotti.

Many great athletes are legendary for the brutal discipline of their practice routines. In basketball, Michael Jordan practiced intensely beyond the already punishing team practices. (Had Jordan possessed some mammoth natural gift specifically for basketball, it seems unlikely he’d have been cut from his high school team.)

In football, all-time-great receiver Jerry Rice - passed up by 15 teams because they considered him too slow - practiced so hard that other players would get sick trying to keep up.

Tiger Woods is a textbook example of what the research shows. Because his father introduced him to golf at an extremely early age - 18 months - and encouraged him to practice intensively, Woods had racked up at least 15 years of practice by the time he became the youngest-ever winner of the U.S. Amateur Championship, at age 18. Also in line with the findings, he has never stopped trying to improve, devoting many hours a day to conditioning and practice, even remaking his swing twice because that’s what it took to get even better.

The business side

The evidence, scientific as well as anecdotal, seems overwhelmingly in favor of deliberate practice as the source of great performance. Just one problem: How do you practice business? Many elements of business, in fact, are directly practicable. Presenting, negotiating, delivering evaluations, deciphering financial statements - you can practice them all.

Still, they aren’t the essence of great managerial performance. That requires making judgments and decisions with imperfect information in an uncertain environment, interacting with people, seeking information - can you practice those things too? You can, though not in the way you would practice a Chopin etude.

Instead, it’s all about how you do what you’re already doing - you create the practice in your work, which requires a few critical changes. The first is going at any task with a new goal: Instead of merely trying to get it done, you aim to get better at it.

Report writing involves finding information, analyzing it and presenting it - each an improvable skill. Chairing a board meeting requires understanding the company’s strategy in the deepest way, forming a coherent view of coming market changes and setting a tone for the discussion. Anything that anyone does at work, from the most basic task to the most exalted, is an improvable skill.

Adopting a new mindset

Armed with that mindset, people go at a job in a new way. Research shows they process information more deeply and retain it longer. They want more information on what they’re doing and seek other perspectives. They adopt a longer-term point of view. In the activity itself, the mindset persists. You aren’t just doing the job, you’re explicitly trying to get better at it in the larger sense.

Again, research shows that this difference in mental approach is vital. For example, when amateur singers take a singing lesson, they experience it as fun, a release of tension. But for professional singers, it’s the opposite: They increase their concentration and focus on improving their performance during the lesson. Same activity, different mindset.

Feedback is crucial, and getting it should be no problem in business. Yet most people don’t seek it; they just wait for it, half hoping it won’t come. Without it, as Goldman Sachs leadership-development chief Steve Kerr says, “it’s as if you’re bowling through a curtain that comes down to knee level. If you don’t know how successful you are, two things happen: One, you don’t get any better, and two, you stop caring.” In some companies, like General Electric, frequent feedback is part of the culture. If you aren’t lucky enough to get that, s