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Management Training with Clay Clark
-So what happens is, every time you get promoted, you get more problems.
-So every time they get promoted, your job gets harder. People think it's going to be, well, if I was just boss, I would be-- let me tell you what. If you're a manager and you're watch this, you know that you work a lot more hours than your folks.
SPEAKER: Right. (LAUGHS)
-Or you're not going to be manager very long. If you're the head coach of an NFL team or an NBA team, you're working a lot more than the players, usually.
-So if you get promoted, you have more problems. And every one of these top executives are saying-- I mean, you see it all the time-- they're saying, this is the book I recommend.
-I love it. Here's what he says, OK. He says, "Effective leadership is not about speeches or being liked. Leadership is defined by results not attributes." Break this down for me. What is he saying, here?
-Well, I mean, the concept is that-- let's just say that I work in a position, and I'm a leader. And I'm very excited. I'm very good at it quoting. I'm very motivational. I get up there and I say, guys, we need to make some big changes this quarter.
SPEAKER: Oh, wow.
-I see a vision for us. We are going to the next level. I have seen it. I'm going there. We're going. Who's going with me?
SPEAKER: I am.
-Yeah. And people are like, OK, yeah. But then, over the next month, people say, well, did we get there? And you say, guys, I've seen a vision. I have seen-- and there's only so many times you can do that before you have to have some sort of traction. Otherwise, people think you're nuts.
-So because results are so huge, that's--
-Yeah. So even people that led great movements, like Martin Luther King Jr., he was able to point back and say, look at the impact we made at this particular protest. Look at the impact we made here. Look at it here, here, here.
When you look at FDR, whether you like him politically or not, when FDR was helping get us out of the depression, he had to point back, and he had to hop on the radio and say, "We have nothing to fear but fear itself." Which is a great statement. And my main man, Napoleon Hill helped write that, by the way.
-Whoa. He was a speechwriter. Just throwing that out there.
SPEAKER: Napoleon Hill.
-Napoleon Hill, always everywhere. So anyway, he said we have nothing to fear but fear itself. You can only say that only so many times until you have to show the economy improving. President Obama seemed to have conceded, the economy's getting better, but until I have a job, I don't care. So the result has to be your focus.
SPEAKER: OK, that's huge.
-And as it relates to the key performance indicator, what you have to do is, you have to say, what is the number we're managing?
-OK, here's what the definition-- we have a little definition magician, here--
[MAGIC SOUND EFFECT]
--key performance indicators, this is how it's defined here by Investopedia.
SPEAKER: "A set of quantifiable measures that a company or industry uses to gauge or compare performance in terms of meeting their strategic and operational goals. KPIs"-- or Key Performance Indicators-- "--vary between companies and industries, depending on their priorities or performance criteria." So that's kind of a lot. That's kind of-- what is this? Break it down for us like fractions, Clay. What are the key performance indicators?
-All right. So you got Crazy Karl and you got Doug E Fresh.
-They work together in the office. They have the same job. They both do sales. Doug E. Fresh is working 60 hours. Karl is working 60 hours.
-Doug E. Fresh is a jerk.
-Carl is super nice.
-Doug E. Fresh is bringing in $10,000 a week of sales.
-And Karl's bringing in $2,000 of sales.
-What most companies do is, they only focus on this total. And they say, well, as a total, we brought in $12,000 total. You guys are doing a great job. Well, let's forget for a second that we knew it's going to happen. But let's just kind of see this play out.
-So I say, you guys are doing a great job. You hit our goal. Our goal was to do $5,000 a week, per sales guy. And so, great job, guys. And then, Karl's like, yeah! Woo! And Karl's great. Remember, people like Karl. Karl's good talking. Karl says, hey, boss, I'll tell you what. We're so excited. I got a new initiative I want to do. I've got us some new ideas and things we need to do. I'm excited.
-And over here, Doug E. Fresh is getting more and more pissed. He's on the downward cycle, here. Why is he pissed? He's pissed because we keep talking about how good they're doing. But really, he's the one doing good, and he's the one doing not good.
So you've got to begin to focus right now, and think about what are the indicators, the key performance indicators, that you're going to manage. Because if you can't measure it, you can't manage it. And so, you have to know, if you have a customer service rep, same thing applies.
Let's say it's a customer service rep. You figure out, what is the number you're going to manage? So maybe it's the amount of people that they're able to upsell.
-So you managed the upsell percentage. And maybe you find that you managed that, and this guy upsells 51% of people, and this guy upsells 12%. You can manage that.
-If you don't have a number, and it's just this sort of general, non-quantifiable if it's a qualifiable. It's just like, you're doing good, you're doing bad.
SPEAKER: You can't compare.
-You can't compare. That's why if you watch sports they always show, this guy's got a batting average of this. This guy's got a batting average of this. This guy shoots this percentage of free throws. This guy does this. 'Cause at the end of the day, you've got to manage-- you've got to be able to manage those numbers. You have to know what's going on... Management Training.
SPEAKER: Absolutely. That's huge. So what action item do you give us right now? If you're talking to the Thriver on the other side of this camera--
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-Whether they're managing people or hope to be managing people, what action item do you give them
-Think about everyone's job and come up with three key performance indicators per position.
-Come up with three key performance indicators per position.
-Yeah. I wouldn't have like, 50. I'd have three.
-So you say, no matter what position it is. If it's the bathroom cleaning guy. What percent of the time are you cleaning the bathroom to the standards? What percentage of the time are you showing up to work on time? What percent of the time are you doing your ongoing education?
-If it's the manager. What percentage of the time are your people hitting their goals? What percentage of the time are you getting to work on time? What percentage of the time are you--?
-You got to have some kind of quantifiable standard.
-If you don't, it's just general. And it's ambiguous. It's weird. It's like playing a sport without keeping score. It's sort of depressing.
-Yeah. That's what little kids are doing now. They don't keep score.
-Kids on the streets are out there playing basketball. And they're not keeping score. What?
-Kids on the street keep score. It's those organized sports.
-Oh. So you're saying, that oh, really?
-That's my opinion.
-OK. Just real quick-- I just want to make sure you're getting this. Because I did this on purpose. I want to make sure you're getting this.
-My kids play organized sports.
-Yeah. Your son's playing hockey, right?
-Yeah. And some of the people are not keeping score. The kids who are playing in the streets or playing on the driveways or having fun. We're all keeping score. We're playing pick up games. I know the score.
-You've got 11. I got nine. I'm upset. Run it up. Let's play again. But these organized sports now, third graders, fourth graders, are all getting a trophy. And like, one team's losing 12 to one, they're like, good job, everybody. I mean, no.
-If you run your business like, though, that seems like that could lead to some problems.
-Well, the problem is a lot of people start playing organized sports this way, and now these same people who-- if this is you-- if you played soccer and they didn't keep score, you might-- because remember, this age group now who was used to not keeping score is now starting to own businesses. And that's tough.
Because remember, in college, I mean, I don't know where you went to college, but I can tell you where I went to college. The point is, in college-- I went to three different colleges-- I remember there was specifically a professor who we had, who you could write the crappiest paper ever, and all he did is looked at the length of the paper, and if it was the right length, he would literally go, that's a great effort. I see a lot of potential in you. To everyone. And you're just like, if you take that mindset into work, you're going to lose, man. The world of business is all about results.
-Amen. Here we go. Principle number three. You must daily know, did you win or lose? This is just a beautiful segue here into this third principle. You have to know on a daily basis if you won or lost. Before we dive into some of the notable quotable, why is that important, knowing if you won or lost each and every day.
-A friend of mine, we'll put a graphic of him on the screen here. Danny Cahill. He is the Biggest Loser a few years back. And he was-- I don't remember-- we'll put it on the screen how much he weighed before. We can get a before and after photo. That but the thing is, if you look at this picture here, he weighed a lot. And we went from this weight down to this weight.
You don't lose hundreds of pounds by just sort of, well, I did my best. He had to figure out exactly how many calories he had to lose every day. So I think Jillian was his trainer on the show "The Biggest Loser." There's Jillian, and there's Bob, and different trainers. And they're saying, this is how many calories per day you have to lose to get to that goal. But it's not ambiguous thing of like, just do your best.
-Eat some fruit.
-Eat some fruit. Try to eat less wheat.
-Here's what he says, "There is nothing so useless as doing efficiently that which should not be done at all." There is nothing so useless as doing efficiently what should not be done at all. What is he talking about? And how does that apply to this principal here... Management Training.
-There was a-- I don't want to say anything to offend this person. So I'm going to speak as general as possible.
-There's a person of an ambiguous gender, who might or might not have worked for me years ago, who used to want to clean the garage all the time. I'm going to go clean the garage. And I'm like, why? I just want to get it right. Sweeping. Got the ShopVac. He went out and bought a ShopVac. Vacuum it perfect.
-Vacuuming. Puts labels on everything.
-That's so nice.
-Organizes it. Vacuums it. Puts it all-- gives a serial bar code system he comes up with.
-I swear to you. And I was out of town for a week. I come back. He gives me a bill for a grand. He says, I got a ShopVac. I got a serial number system. I got the [BEEP]. I can go [BEEP]. I can [BEEP]. Oh, there's a speaker. [BEEP]. I checked you out. [BEEP]. So then he goes to load out. This is one week I was gone. One week. He or she. Probably she. Probably she.
-Might have been.
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-I come back-- I'm gone for one week-- I come back, and the DJs are loading out. And some of the guys don't have their equipment. And I'm like, how did people go out to shows without speakers or amplifiers, to road shows? How did they get to Kansas City without an amplifier? Because I had to buy them on the spot.
So a guy's in Kansas City-- hey, boss, I don't have an amplifier. I'm like, well, we have to buy one. So we had to buy amplifiers on the spot. It was a big, dramatic deal. And he was like, well, I did the scan system-- [BOOP]-- and it said that we loaded them out. [BOOP]. But one, he's not a programmer. Two, he had no idea how the software worked. Three, we didn't need his software. Four, he didn't need to clean the garage again. Five, he didn't need to get a shop vac. I could go on and on.
Everything he did the entire week was unnecessary. And sales were at an all-time low. And his job was to run the sales floor while I was gone. It's unbelievable. And that is an example of what is a human-- not just you-- but it's human nature to do whatever has the least amount of rejection. Here we go. The path of least resistance. This is huge.
-Here we go. If we've got this mountain going on here. This is a mountain.
GUEST: I love your claymations. They're beautiful.
-Well, I appreciate you. Because this one's going to be a good one.
GUEST: Come on.
-Oh, baby. Here we go. Oh, come on now. Here we go.
GUEST: You've got a mountain. I see some trees.
-OK. Got this going on. So now we get some rain going, so rain's coming down, coming down, ooh, happy, happy. Oh. Whoa. So it comes in here, gets a little bigger, raging rapids.
GUEST: Oh, wow.
-Awesome. Yeah. So what happens is this water is going to travel downhill, down the path of least resistance.
GUEST: Makes sense.
-So it's going to go into wherever the mountain it can. There's a little valley over here. There's a little-- here. I And it's going to go wherever the path of least resistance is. That's where the water flows.
As a human race, this is what we do. Whatever is the easiest is usually what we do. This is how you go, well, I really need to read books. The data is out there, folks. The majority of successful people are spending 30 minute a day studying success. Oh, well, but you know, I already know that. It's pretty much common sense. That's what we say.
GUEST: Yeah, that's true.
-It's pretty much easy. I'm pretty much-- whatever is the easiest. We know that to be a good husband-- I know to be good husband, I need to schedule time to take my wife on a date. Well, that requires work. And I remember that for the first several years of my marriage, like seven years of my marriage, I never-- just don't do this, by the way, this is a tip for making your wife upset-- I never scheduled the time for the dates.
So every week someone would call and have an emergency, and I was always victim to other people's urgencies, other people's problems. But if you say, OK, this is the path of least resistance. You say, that's it. I'm building a dam. Now if you're watching this and you're big part of the EPA, calm down.
GUEST: Calm down.
-Calm down, you're the EPA. Build this dam. Let's go. Let's build this dam. How do you build a dam? I'll tell you how you build a dam. You have to work very hard, first off. This is huge. You're building this dam. We're talking about layers and layers of concrete. You've got these rebar going on. It is a huge deal.
And you say, I am going to build this dam. Well, guess what happens as a byproduct of this. One, you get hydroelectric power. You get power as a result of that. Also, you get increased property values, because now this whole area is now a lake. So now you have people living at this lake. Now you've got trees everywhere. People are living by a lake with a mountain view. People are willing to pay more for that. So now you have more tax dollars coming in. You have more power. You have more drinking water that you can divert to wherever you want.
You've got three big benefits. But guess what? It required a lot of work.
GUEST: That's huge.
-That's not what we want to do, though. Build a dam?
GUEST: We like to take the path of least resistance.
-That's what the beaver's doing.
-That's unbelievable. I just want to-- [CLAPPING]-- that is-- that's one of your best claymations I've ever seen.
-Well, a lot of times I see people, and they'll say, hey, Clay Clark, and I feel like they're saying, what's up Picasso? And so I just kind of go, thanks.
-You say thanks when they say hi?
-They've never said I'm Picasso. But I know what they're thinking. If I have a unique ability. For you right now, you're thinking--
-I am not.
-Thank you so much for--
-Here we go. Here we go. So when you're talking about winning each and every day, though, there's a win and a loss column. And I loved your example of your friend, Danny Cahill. And you said Danny Cahill knew exactly how much he had to lose each day. And Peter Drucker's talking about how there's nothing worse than doing the efficient thing that shouldn't be done at all.... Management Training.
So tie this all together for me and give me an action step. Give the Thriver watching an action step right now that we can start doing.
-All right. You're going to make a personal scorecard. And I would do it in these five areas. If you don't want to, you can do it in whatever areas make sense to you.
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