Archive for category: Book Club

Many business books offer solutions or systems or case studies to make their point.  Very few offer a simple narrative with lessons gleaned on the journey.

Tony Hsieh’s Delivering Happiness: A Path to Profits, Passion, and Purpose, happens to be one of those books.  

It had no agenda other than telling the story of Zappos, and yet, when you tell the story of a company that gets acquired for a billion dollars in stock by Amazon ten years after its founding, no agenda is really necessary.  

The journey itself is a compelling narrative.

Pay Employees To Quit

Hiring is such a challenging part of any business that one would think that once you’ve got a new hire, you want to do your best to keep him/her.  Zappos agrees, but adds a twist.

During the training process, they offered a $2,000 bounty to anyone who quits during a certain time period, in addition to getting all pay/vacation time accrued.  

This worked so well in making sure the best people stayed (and the few short-sighted ones left) that Amazon created their own program after acquiring Zappos called Pay to Quit. This program allows full-time associates to take a $5,000 one time bonus to leave the company, but it means they can never work for Amazon again.

Instead of the focus being on bringing on warm bodies, it was on bringing on long-term players, part of a team, part of a family.

Customer Service That Matters

More and more companies are making it difficult for you to contact them if you have problems, questions, or just feedback.  Zappos chooses to go the other way, by plastering their 24/7 telephone number at the top of their website.

In the book Tony mentions at the time of publishing their longest customer call was 6 hours long.  They chose to focus on the relationship with each individual customer.

And when you are focused on relationships, you aren’t focused on metrics like quick turnover times on calls. You want every part of the buying experience to be fun and delightful, and Zappos lives that.

Giving employees the freedom to really represent the brand, as a partner of sorts, inspires them and rubs off onto customers, who go on to become loyal customers, right after they rave about you on social media.

A Culture on Display to the World

Tony would make a point of posting internal company emails and memos to a public blog. He did this only moments after sending them out to the company.  

He also compiled a culture book each year which was printed and distributed to all employees and was then made digitally available to the public.  

The only rule was that no one at the company could censor what each employee wrote. (which, by the way, was their own personal experience of what Zappos company culture was to them).

Culture can’t be made.  It can only grow by the environment created by the work you do together.  Being unafraid of sharing only adds sunshine to an already fertile project.

Dale Carnegie’s How to Win Friends and Influence People was the book that kickstarted the personal development genre that continues to grow every single year.  

While some have attacked some of Carnegie’s methods as “forced”, its continued selling power since 1936 speaks to the timelessness of the ideas between its pages.  

In this article, we’ll examine a few of our favorite ideas that are equally important in business and in our personal lives.

Smile

At the time Carnegie wrote this book he didn’t have access to the overwhelming number of studies that have been done over the years that back up his advice to simply smile.  

Smiling has been shown to improve mood, lower blood pressure, create a stronger immune function and lead to pain relief, among many other astonishing effects.

Furthermore, customers don’t usually register complaints along the lines of, “So and so smiled too much” or “was in too good of a mood.” Smiling is the simplest way to indicate to someone that you’re happy to be there with them.

Become genuinely interested in other people

Sometimes we get caught up in the regularity of business transactions and fail to take the time to get to know people on a personal level. But people prefer to do business with those they know and trust, and it’s sometimes surprising how little we may know about some of our most vital and important clients. It’s a good practice to try to learn something new about clients each time you meet with them.

Be a good listener

In a world filled with digital noise, listening is becoming more and more of a lost art and requires so much more attention than it did in Carnegie’s smartphone-free era. Listening to customers is the easiest way to ensure that you not only fulfill the obvious needs but uncover the not-so-obvious ones too.

Someone’s name is the sweetest sound in any language (to them)

The great failing of many of us is to fail to listen and pay attention when people introduce themselves (see “Be a good listener”). But beyond that, those who are “good with names” weren’t given some magic pill or genetic advantage.

They use strategies like Carnegie outlines in his book, like associating the name with a funny image, repeating it back to yourself silently several times after hearing it, and then using it at least once or twice in the conversation so as to imprint it.  

“Being good with names” takes work, but it’s work that is deeply appreciated and remembered, and will help you stand out in your business dealings.

Give honest appreciation

Mark Zuckerberg famously wrote a thank you note to someone each day of the year for a whole year in order to remind himself of all he was grateful for.  

While you don’t necessarily have to commit to something so significant, it’s important to ask yourself – when was the last time I thanked a colleague, an employee, a vendor, or a customer?  

Genuinely thanked them – taking the time to write them an email, or even better, a handwritten note, to share your appreciation? When you do it for no occasion at all it will be particularly impactful, and you will be influencing people to pass on that gratitude.

Many business books have the same formula:

• Identify a problem
• Show your unique way of solving the problem
• Do so within 300 pages or fewer

This means that there’s a predictable comfort with such books. But it also means only a very few go on to become truly meaningful and useful long-term beyond fads of, oh say, throwing a fish around or asking where someone’s cheese might be.

That’s what’s so surprising and powerful about Extreme Ownership: How US Navy Seals Lead and Win, by Iraq veterans Jocko Willink and Leif Babin.

It manages to tie together a compelling (and real life) narrative about modern warfare with leadership principles and actual case studies of those principles being successfully applied. It’s a book that you’ll want to go back to time and again.  

Twelve Principles

The book has 12 chapters, each of them dedicated to different principles, like “No Bad Teams, Only Bad Leaders,” “Decentralized Command,” and “Discipline Equals Freedom,” a catchphrase that became so popular on Jocko Willink’s podcast that came after the book (unsurprisingly titled Jocko Podcast) that it led to a follow-up book which describes Jocko’s personal life philosophy.  

But the most important chapter, and what sets up the rest of the book, is Chapter 1: Extreme Ownership (this is something we’ve discussed in a previous article). 

The short definition of Extreme Ownership means having a solution-oriented posture towards failures or missteps instead of pointing fingers.

It’s a powerful principle and one that works all the way up and down the chain of a business or any organization. It will change the way your organization works.  

If the response to a problem or failure no longer becomes “Who can we blame?” but rather “How can we prevent this from happening again?” employees will feel supported and everyone will be oriented towards solutions rather than blame.  

A revolutionary idea (for business, at least) inside an atypical business book. Pick it up for the lessons in leadership, come back to it for the humanity that animates it.

The “No Bad Teams, Only Bad Leaders,” chapter is also powerful, as the lesson was derived from SEAL training in which, during a 6 boat race (each boat manned by 6 men), Jocko swapped the leader of the team that was consistently winning (the SEALs had to paddle the boat a certain distance from shore, capsize it, then empty the water out, get back in, and paddle back) with the team that was consistently coming in last.  

Soon thereafter the team that was coming in last started coming in first. The men who were in the boat that was originally finishing last just needed a leader who knew how to motivate them.

Personal Responsibility

The appeal of this book is particularly strong in our society which is so desirous of true, strong leadership. It’s a book that never lets up and never takes the easy way out.  

Leadership isn’t something you achieve, but something you earn every day, and it’s always done best by building your team the right way….by showing them how to lead with humility and engagement.

In 2009 Simon Sinek published a book called Start with Why. That same year he gave a TedX talk which at the time of this article had 36,000,000 views. Why such interest?  

He hit on a powerful notion that isn’t just valuable for a business owner who wants to connect more thoroughly with a customer, but with employees as well.  

Sinek uses Apple because its success and cult-like following are both accepted and legendary.  

He points out that most businesses start at “what” and work into towards “why.” Framing as Apple, this would look like:

“We make computers” – what

“We focus on style and design” – how

“We like to challenge the status quo” – why

That sounds nice. But it’s just like every other pitch out there. “We make cars. They are well designed. Would you like to buy them?”  Sinek points out that the neocortex of our brain engages with what and is very logical.  

But the limbic part of our brains, the parts that know about loyalty and trust and do not have language functions, those are connected with how and why. Sinek then reframes:

“We challenge the status quo in everything we do.”

“One of the ways we do that is by building computers that are designed beautifully.”

“Want to buy one?”

By starting with why, Sinek says that you can acquire customers who think like you (and your business). If they believe in your mission, they will buy anything you want to sell them.  

That’s why Apple doesn’t just sell computers. They sell music players and headphones and tablets and in the near future, perhaps cars. They are operating in your limbic brain, and that’s why you see advocates of their products in contrast to the “whatever works” attitudes of the customers who use other products.

This also allows you to hire employees better, aligning them with your cultural fit. If you hire people who believe what you believe, then it doesn’t matter what tasks you assign or projects you want to tackle – they are with you because you started with why.

As a new year dawns, consider a different way of looking at your business, not just in how you face your customers, but how you face your employees. And you might get to add some of that “can’t explain it” loyalty and excitement that companies like Apple and Tesla generate to add to the things you’re already doing well.

From the title, What I Learned from Losing a Million Dollars, you immediately get that Jim Paul has learned his lesson.

Not only did he lose a lot of money, but he took the time to write a book explaining to you the personal shortcomings that led to that disaster. While it might not immediately sound like a business book, it very much is.

Most might come to the book by a reference in Nassim Taleb’s Black Swan, in which he refers to Paul’s book as one of the most insightful books on investing he’s ever read.

The book is divided into two parts, story and analysis, and at just under 200 pages, is something you could easily finish on a plane ride.  

In the first part of the book, Jim describes his time as a broker and his love for money. He became quite successful before losing it all in the market. That’s not an unusual story. But what happens next is Paul’s journey to understand why he lost and how he can make things right.

People often lose because of psychological factors such as:

• Personalizing the market and their positions (we confuse “wins” with “being right”)
• Internalizing what should be external losses (internal losses affect us emotionally, whereas as external losses can be analyzed dispassionately)
• Confusing the different types of risk activities (there are investors, but there are also traders, speculators, bettors, and gamblers. Are you consistently one of these or do you occasionally slip into other roles due to emotion?)
• Making trades with the crowd (investing in something because everyone else is)

One of the biggest lessons from the book is one that was very much underlined in Tony Robbins’ recent book on money: risk mitigation. There are lots of ways to make money in business and the market, but rather than just taking risks the most successful people excel at judging, minimizing, and controlling risk.  

“Learning how not to lose money is more important than learning how to make money,” Paul notes.

The book is one of those rare reads in investing that manages to both be interesting from a personal story side while giving you practical advice about how to trade and invest better. This, of course, matches well with how to run a business better.