18 de fevereiro de 2019
“The basic difference between an ordinary man and a warrior is that a warrior takes everything as a challenge while an ordinary man takes everything either as a blessing or a curse,”
The question has often been asked of me, “What do the owners of extraordinary businesses know that the rest don’t?” Contrary to popular belief, my experience has shown me that the people who are exceptionally good in business aren’t so because of what they know but because of their insatiable need to know more. The problem with most failing businesses I’ve encountered is not that their owners don’t know enough about finance, marketing, management, and operations—they don’t, but those things are easy enough to learn—but that they spend their time and energy defending what they think they know. The greatest businesspeople I’ve met are determined to get it right no matter what the cost.
Yes, the simple truth about the greatest businesspeople I have known is that they have a genuine fascination for the truly astonishing impact little things done exactly right can have on the world. It is to that fascination that this book is dedicated.
They intoxicate themselves with work so they won’t see how they really are.
That Fatal Assumption is: if you understand the technical work of a business, you understand a business that does that technical work. And the reason it’s fatal is that it just isn’t true. In fact, it’s the root cause of most small business failures! The technical work of a business and a business that does that technical work are two totally different things!
every small business. But it’s a three-way battle between The Entrepreneur, The Manager, and The Technician. Unfortunately, it’s a battle no one can win.
It is the tension between The Entrepreneur’s vision and The Manager’s pragmatism that creates the synthesis from which all great works are born.
most businesses are operated according to what the owner wants as opposed to what the business needs. And what The Technician who runs the company wants is not growth or change but exactly the opposite. He wants a place to go to work, free to do what he wants, when he wants, free from the constraints of work
Infancy ends when the owner realizes that the business cannot continue to run the way it has been; that, in order for it to survive, it will have to change.
“To be a great Technician is simply insufficient to the task of building a great small business.
“Because in a business like that what your customers are buying is not your business’s ability to give them what they want but your ability to give them what they want. And that’s what’s wrong with it!
The Franchise Prototype is also the place where all assumptions are put to the test to see how well they work before becoming operational in the business. Without it the franchise would be an impossible dream, as chaotic and undisciplined as any business. The Prototype acts as a buffer between hypothesis and action. Putting ideas to the test in the real world rather than the world of competing ideas. The only criterion of value becomes the answer to the ultimate question: “Does it work?”
The system runs the business. The people run the system.
The Franchise Prototype is the answer to the perpetual question: “How do I give my customer what he wants while maintaining control of the business that’s giving it to him?”
It’s been there in the form of a Proprietary Operating System at the heart of every extraordinary business around you, franchised or not. Because, after all, that’s all that any Business Format Franchise really is. It is a proprietary way of doing business that successfully and preferentially differentiates every extraordinary business from every one of its competitors. In this light, every great business in the world is a franchise.
its best, your business is something apart from you, rather than a part of you, with its own rules and its own purposes. An organism, you might say, that will live or die according to how well it performs its sole function: to find and keep customers.
Further, now that you know what the game is—the franchise game—understand that there are rules to follow if you are to win: 1. The model will provide consistent value to your customers, employees, suppliers, and lenders, beyond what they expect. 2. The model will be operated by people with the lowest possible level of skill. 3. The model will stand out as a place of impeccable order. 4. All work in the model will be documented in Operations Manuals. 5. The model will provide a uniformly predictable service to the customer. 6. The model will utilize a uniform color, dress, and facilities code.
the difference between creativity and Innovation is the difference between thinking about getting things done in the world and getting things done.
Where the business is the product, how the business interacts with the consumer is more important than what it sells.
The next time you want somebody to do something for you, touch him softly on the arm as you ask him to do it. You will be amazed to find that more people will respond positively when you touch them than when you don’t.
Because without the numbers you can’t possibly know where you are, let alone where you’re going. With the numbers, your business will take on a totally new meaning. It will come alive with possibilities.
In short, the definition of a franchise is simply your unique way of doing business. And unless your unique way of doing business can be replicated every single time, you don’t own it.
Your Strategic Objective is a very clear statement of what your business has to ultimately do for you to achieve your Primary Aim.
The commodity is the thing your customer actually walks out with in his hand. The product is what your customer feels as he walks out of your business. What he feels about your business, not what he feels about the commodity. Understanding the difference between the two is what creating a great business is all about.
What’s your product? What feeling will your customer walk away with? Peace of mind? Order? Power? Love? What is he really buying when he buys from you? The truth is, nobody’s interested in the commodity. People buy feelings. And as the world becomes more and more complex, and the commodities more varied, the feelings we want become more urgent, less rational, more unconscious. How your business anticipates those feelings and satisfies them is your product.
What standards are you going to insist upon regarding reporting, cleanliness, clothing, management, hiring, firing, training, and so forth?
one of the problems we have in our lives is that we don’t express our caring deeply or often enough.
Accountability literally means “stand up and be counted.” Therefore, the Position Contract is the document that identifies who’s to stand up and what they’re being counted on to produce.
“There is no such thing as undesirable work,” he continued. “There are only people who see certain kinds of work as undesirable
I came to understand that the hotel was the least important thing in our relationship. What was important was how seriously I took to playing the game he had created here.
The game can’t be created as a device to enroll your people. It can’t become cynical if it’s to provide your people with what they need in order to come alive while playing it. The game has to be real. You have to mean it. The game is a measure of you.
But remember, you can have the best reasons in the world for your game and still end up with a loser if the logic is not supported by a strong emotional commitment. All the logic does is give your people the rational armament to support their emotional commitment. If their commitment wanes, it means that they—and most likely, you—have forgotten the logic.
The game needs to be fun from time to time. Note that I said, from time to time. No game needs to be fun all the time. In fact, a game is often no fun at all.
But make certain that the fun you plan is fun. Fun needs to be defined by your people.
If you can’t think of a good game, steal one. Anyone’s ideas are as good as your own.
In short, the medium of communication became as important as the idea it was designed to communicate. And the hotel’s hiring process became the first and most essential medium for communicating the Boss’s idea.
Every bit of which is documented in your Operations Manuals. Every bit of which is taught at your school. Every bit of which is managed to, and improved upon, and discussed among you and your people for as long as you’re in business! That’s what ‘It’ is. ‘It’ is your Best Way
Demographics and psychographics are the two essential pillars supporting a successful marketing program. If you know who your customer is—demographics—you can then determine why he buys—psychographics. And having done so, you can then begin to construct a Prototype to satisfy his unconscious needs, but scientifically rather than arbitrarily.
Reality only exists in someone’s perceptions, attitudes, beliefs, conclusions—whatever you wish to call those positions of the mind from which all expectations arise—and nowhere else.
And all because of a four-inch Lucite collar! A Hard System for producing a human and totally integrated result. A system solution to a typically people-intensive problem. Without anyone having to pay attention to it.
The Structure of the System is all of the predetermined elements of the Process, and includes exactly what you say, the materials you use when you say it, and what you wear. The Substance of the System is what you—the salesperson—bring to the Process, and includes how you say it, how you use it when you say it, and how you are when you say it.
If your Systems Strategy is the glue that holds your Franchise Prototype together, then information is the glue that holds your Systems Strategy together.
“In fact,” I continued, “every written or verbal communication with anyone who comes into contact with your business is a Soft System. What so few of us understand is the power of those words when they are totally integrated.
Your Comfort Zone has seized you before, Sarah, and it can seize you again, when you’re least prepared for it, because it knows what it means to you. Because it knows how much you want to be comfortable. Because it knows what price you are willing to pay for the comfort of being in control. The ultimate price, your life.
So if the world is going to be changed, we must first change our lives! Unfortunately, we haven’t been taught to think that way. We are an “out there” society, accustomed to thinking in terms of them against us. We want to fix the world so that we can remain the same. And for an “out there” society, coming “inside” is a problem.
The lesson to learn from all this is simple: we can’t change our lives by starting “out there.” All we can produce in the process is more chaos!
The lesson to learn from all this is simple: we can’t change our lives by starting “out there.” All we can produce in the process is more chaos! We can only change our lives and create a world of our own if we first understand how such a world is constructed, how it works, and the rules of the game. And that means we have to study the world and how we are in it. And in order to do that we need a world small enough in scope and complexity to study. A small business is just such a world.