I recently met with a business owner who was lamenting that his employees, all long-term associates with this relatively successful professional services company, were not as committed as they used to be. The example he gave me to prove his point was that his top three people were not taking accountability for specific action items with a new service offering. "If implemented," he said with his hands flailing, "this new service could easily double our sales in 12 to 18 months."  He went on to say, "But that's not going to happen if people don't live up to the plan. They need to be committed to getting this thing done."

 

Well, I couldn't agree more that commitment is a key element to success, especially for anything that requires a level of coordinated execution. Success in a complex environment can be daunting and individual commitment is sometimes the only thing, the glue, that holds everything together.  However, commitment doesn't come in bottles or cans, something to be poured or sprinkled on your associates. Commitment has to be developed, step-by-step, for any new or different idea or project. If you need to get more commitment from your associates, here are a few specific steps to help you do so:

 

KISS. Keep it simple, of course, and crystal clear. It seems that most people today are on mental overload. Your industry, your business and your environment are all continually changing for better or worse and are simply becoming more complex. People like things that are simple and will reject, often subconsciously, those that are not. Keeping your ideas and plans simple is the first step to gaining commitment from others.

 

WIIFM. Few people will buy a service or project unless they know how it works. More importantly they need to know WIIFM, or "what’s in it for me," before they buy. The same goes for your new idea or project. You know how great it is – after all it's your idea, filled with your keen perspective and insight. But do your associates know what's in it for them if they engage in this great idea? Can they see a direct benefit, indirect benefit, short- or long-term opportunity? Only when people understand what's in it for them can they make a decision whether or not it's worth their while to become fully engaged. Without answering the WIIFM question, you'll never develop full commitment.

 

Agreement. To hold someone accountable for anything, they must clearly understand your expectations, but they must also agree with them, a mental contract if you will. This may be the most difficult step in development since it is often quite subjective. That is, some folks may not want to travel down the path your headed. You may have presented your idea simply and clearly, and you may have spelled out what's in it for them very objectively. However, they may not want to go, or agree to contract with you, for a variety of personal reasons. As a business owner if you've done your homework (be brutally honest with yourself here) with the KISS and WIIFM steps, you can not afford to spend a lot of time pleading with people to see it your way. They must agree with your plan to become fully committed.  If they don't, it's time to move on - or time to move them.  But if they do agree, they will most likely commit 100%.

 

Commitment then, can't be expected from others. It must be developed step-by-step. Doing so will ensure success for your next big idea.

 

 The Power of Leverage
by Rand Golletz

In the real estate world, we read and hear a lot about the power of leverage. Essentially, it means investing a limited amount of personal cash to geometrically increase net worth. Let's say you buy a piece of rental property for $300,000 with a down payment of 20%. You laid out $60,000. The rental on the property covers your monthly mortgage and all of the expenses to maintain the property, so the investment is cash-flow neutral (for simplicity sake).

 

In seven years, you anticipate selling the property for $600,000. After you pay off the mortgage, you get a return of $360,000 on your original investment of $60,000. Six times your down payment in seven years. Not bad.

 

If this was new information for you, you're probably reading the wrong newsletter. I do have two bigger points, however: First, leverage has power in every area of life. Second, the failure to exploit leverage will lead you to an unsatisfying life.

 

Let me explain!

 

My "bigger" definition of leverage is employing time, talent and money to create a disproportionately high level of value. Let's take a look at a business example. In 2003, one of my clients, John, owned one car dealership. His personal annual income and net worth ($500,000 and $3.5 million, respectively) were enviable for a guy in his early 40s. John was not, however, a happy camper. He had not taken a vacation of longer than three days in six years. His relationship with his family was tenuous, at best. He was also an anal, detail monger in the office. Although he professed that he trusted his people to do their jobs well, his demeanor portrayed something else. He submerged himself in almost every decision — even those for which he had no background or expertise — not because he added value, but because he could. The length of his work weeks, typically 75 to 80 hours, was a source of personal pride. John was also 50 lbs. overweight and suffering from high blood pressure because, he said, he was forced to eat on the run and had no time for a fitness regime.

 

Let's review the bidding here: We have a financially successful guy with an unrewarding, unhealthy, unbalanced, obsessive/compulsive life. Is that what you want?

 

Four years later, here's the picture: John has an income and net worth of $1.5 million and $12 million, respectively. Last year, he took off 180 days (that's not a typo)! He has a hyper-qualified (and highly paid) president now running the business. He is working about 40 hours a week. John's time in the office is now consumed in two areas – the performance and development of people and prospecting for acquisions. His family life is much improved, and he has lost the 50 lbs. with a regular routine of running, lifting weights, yoga and meditation. His blood pressure has improved to 105/70.

 

The only difference in the "two Johns": leverage. He now dedicates his time and talent to activities which give him a disproportionately high payback for the resources invested. That requires a complete understanding of his strengths and passions. Where they intersect, he wades in. Where they don't, he steers clear.

 

Many, many business people become martyrs and then brag about it – as if self-sacrifice is sexy! Tony Robbins says, "life rewards action." That's an  incomplete assertion. Life really rewards RELEVANT action. In order to be relevant, action has to produce the results you intend. Otherwise, it's just MOVEMENT. Relevant action must create leverage. Otherwise, personal and professional growth and success are not possible.

 

Don't major in minor things. Use leverage to your advantage.