The ONLY thing stopping you from making MILLIONS
Summary
I've taken home an average of $1.2 million a month since age 24.
I've sold over 3,000 fitness programs and served more than 7,500 B2B customers.
I've provided supplements to over 370,000 customers.
We built, scaled, and sold three businesses leading to a $100 million net worth by age 28.
We now run a portfolio valued at about $500 million.
57% of employees quit due to their boss, not pay or incentives.
You don't pick a job; you pick your boss.
Positive reinforcement works better in the long term than punishment.
Immediate feedback, even small, can significantly reinforce desired behaviors.
Critiques should focus on behaviors under employees' control and conveyed quickly.
Focus feedback on what to do in the future, not dwelling on past mistakes.
Reinforce good behaviors immediately with praise or small rewards.
Do not slowly reinforce negative behaviors; it only encourages them.
Constructive criticism should make clear what is expected, not insult or compare negatively.
Critiquing should be personal, frequent, and based on observable actions controlled by the employee.
Future-focused feedback is more effective in guiding progress than past-focused criticism.
Avoid creating a punishing environment as it leads to secrecy, anxiety, and lack of innovation.
Positive environments encourage openness, loyalty, and innovation.
Simple, immediate recognition can build a strong, positive work culture.
Use specific, personal feedback rather than general group feedback.
Teach and onboard new employees properly to set clear expectations from the start.
Ensure critique is understood and provide actionable steps for improvement.
Latency over intensity: respond to desired actions quickly rather than with delayed, intense reactions.
Criticism vs. insults: focus on constructive feedback, not tearing down employees.
Future vs. past: guide employees on what to do next rather than focusing on past mistakes.
Commit to using at least one of these principles to improve team performance and morale.
Video
How To Take Action
I would suggest implementing these strategies to create a great work environment and keep your team motivated.
Focus on Positive Reinforcement
A good way of encouraging better behavior is to recognize and reward it immediately. When you see an employee doing something well, praise them right away. This could be a quick message, a high five, or a shout-out during a meeting. Simple recognition can greatly boost morale.
Give Clear, Future-Focused Feedback
Another key point is to give clear and direct feedback focused on future actions. Instead of dwelling on past mistakes, guide your employees on what they should do differently next time. For example, instead of saying, "Don't run the class like that again," say, "Next time, let's ensure we take full rest breaks so the class lasts 60 minutes."
Provide Immediate and Small Rewards
To reinforce good behaviors, provide small, immediate rewards. This could be anything from a gift card to an extra hour off. What's important is that the recognition happens quickly, so the team makes the connection between the good behavior and the reward.
Avoid Punishing Environment
Creating a punishing work environment can lead to secrecy, anxiety, and lack of innovation. Instead, aim to build a positive work culture where issues can be discussed openly. Encourage mistakes as learning opportunities and be supportive rather than punitive.
Specific and Personal Feedback
When giving feedback, be specific and personal. Avoid general comments to the group. If someone needs improvement, talk to them directly about what they can control and how they can do better.
Onboarding and Training
Ensure your new employees know what is expected of them right from the start. Proper onboarding and continuous training will help them meet those expectations effectively.
By focusing on these strategies, you'll build a positive environment that encourages growth, innovation, and loyalty. This approach won't just help your team perform better; it will make your business a place where people love to work.
Quotes by Leila Hormozi#### "My promise to you is that by the end of this presentation you will be able to use my three-part framework to beat 99% of business owners and achieve the wealth and freedom that you desire"
– Leila Hormozi
“You don’t pick a job; you pick your boss”
– Leila Hormozi
“People work hard because they enjoy the consequences of their hard work”
– Leila Hormozi
“Your employees are not stupid, your employees are doing what they have been trained to do”
– Leila Hormozi
“The best leaders create a vision so compelling that their team is so focused on moving forward that they think not to look back”
– Leila Hormozi
Full Transcript
what I want to talk about is the invisible force keeping you stuck okay so basically what if you feel frustrated stuck if you're poor then my promise to you is that by the end of this presentation you will be able to use my three-part framework to beat 99% of business owners and achieve the wealth and freedom that you desire okay so if you're new or you have no idea who I am somehow then let me give you my resume in 60 seconds because this always does happen okay since the age of 24 I've taken home an average of $1.2 million a month I've sold over 3,000 fitness programs servic over 7500 beat tie ticket B2B customers provide supplements to over 370,000 customers personally built scaled and sold these three businesses which is why we are here in this room and then that led to reaching a $100 million net worth by the age of 28 in the birth of acquisition. comom where we run a portfolio valued at about 500 million so you guys ready to dive in [Applause] I'm not going to lie I didn't know what the intro was so I was like it I'll throw it in cool let's dive in question for you guys what makes the difference between a place people genuinely love working and when they desperately want to leave somebody said it they're boss yes okay are there other factors what about pay working hour bonuses incentives yes of course those are other factors but those are not the root issue that's not the reason that so many people are leaving in fact that's not the reason that 57% of people are leaving 57% of employees who quit do so due to their boss management or leadership so people are always like somebody comes up to me always at events they're like I just don't understand why everyone's leaving and I'm like I do buddy you know what I mean like we got to look in the mirror right and so it's you don't pick a job you pick your boss so let me tell you guys a little story rewind back to gosh 2017 uh when Alex and I started gym launch there we are right there before my nose job and uh so Alex and I ran the sales team at first so actually we participated in the sales for a long time in the beginning of the business because we were so terrified of losing money and so at some point Alex got completely out and then it was just me managing the sales team and eventually it made no sense for me to either because at that point I was like dude I need to move on I need to build out the marketing I need to build out CS I need to build operations I need to hire people right and so like any inexperience manager what did I do right I hired the first guy with a pulse who said he could do it okay and so I did not interview anybody I did not check qualifications uh I did not test him I didn't interview anybody else right he was already on the team so I was like easy switch just yeah be the manager it right anyone ever done that you guys are lying if you didn't raise your hand and so I was relieved because I was like finally I can focus on marketing product Cs and all these other things that I've been putting off because I've been over here like managing the sales team right and if anybody's managed the sales team before you know how much time it takes so then uh I was like what's going on because I brought in this guy his name is John right and John was the guy I hired and all of a sudden all the sales guys start texting me about a week in and I was like what's going on and they're all like I don't I don't really like John Lea and I was like I'm like well as long as the numbers you know still continue to go up I'm sure this is not a big deal right um but they weren't big fans of him and I was like this isn't a good leading indicator right why were they not fans of John okay John had unclear communication so when I watched his gamet tape reviews if any of you guys do gam tape reviews for sales I was watching what he was saying to them and it was like he would watch he' be like yo bro you just can't do this again and I was like okay clear not clear right he was unpredictable half the time John didn't even show up to damn sales meetings so like I got on at they had their drilling at like 5:00 a.m. and so I showed up for two days in a row and John wasn't even there and I was like where's John they're like I don't know he's here some of the time he's here some not the time we don't really know and I was like okay um you know he was fear-based so again when I watched him run the team trainings and somebody wasn't hitting their numbers he was like listen I'm not telling you that you're going to get fired but I was like fck right he was unfair he was assumptive and he made a hard job horrible for people right because if you guys have been in sales before you know that shit's hard it's like you don't need somebody to be beating you up at the end of the day you already beat yourself up you already get beat up by the prospects and so even though John was technically good at the job he was rough around the edges had very few actual management skills honestly seemed like he couldn't give a about anybody on the team so unfortunately this combined with our numbers starting to fall is when I knew that something had to change now what did I do because I was still inexperienced right ironically at the same time I got an email from a guy named Matt and he was super excited and he had a track record of actually Building Sales teams and so I immediately booted John and hired Matt without interviewing anybody else because again remember this is many years ago I wasn't experienced but guess what happened when I hired Matt Matt had clear communication every time I watched his call reviews it was very clear when he was trying to give somebody advice he was like oh your tonality at the end like let's flip it up instead of flipping it down let's end with a question on a statement we got to listen more to the prospects giving them very tactical advice right he is predictable he was on every single sales meeting he was up at 5:00 a.m. every day and he would message the group in the slack thread every day at 5: a.m. without a doubt every single day he was encouraging when people didn't make a sale he was like dude you got this like some people say no we just move on to the next one he never dwelled on what happened in the past right he was fair and needed sugarcoat it so even though he was like an encouraging guy and he was positive you know he wasn't a n and he made a hard job fun because for those of you who have been in sales and a lot of you still do sales you understand that it can be a hard thing to do but if you have somebody who makes it fun it makes it all worth it and so can you guess what happened to the sales team within six weeks of me bringing in Matt we went from mediocre to record-breaking to be specific we went from a 30% close rate to a 75% close rate I'm not kidding here shock awe amazing right and so this experience is what put me on a mission to create a business where people genuinely loved working not because I'm like some person that's just like romantic about the soft stuff but because I saw the difference firsthand how having a boss that gives a can affect morale performance retention profit Revenue how the soft stuff can affect the hard stuff right and not to mention why on Earth would I want to employ people who don't like me or don't like the work that they do do you guys want to walk into your gym every day and feel like everyone hates you wouldn't want that either right sounds doubly shitty so to be specific so we can get into the meat of it here what was the difference between John and Matt and don't say he was a dick it's too easy okay the difference is that John used punishment to get stuff done right while Matt use positive reinforcement to get stuff done let me explain let's define terms okay positive reinforcement is the introduction of a desirable or Pleasant stimulus after a behavior okay therefore making it more likely that the behavior will occur again because they got something they liked afterwards what is punishment okay punishment is the infliction or imposition of a penalty as retribution for the behavior making it less likely a behavior will occur again understand great let's give an example here a lot of you know this who has a dog okay cool dog trainers love this one but um so positive reinforcement would be like if your dog you know sits when you say sit you immediately give it a treat that's an example of positive reinforcement what's another example positive reinforcement that we'd have in business the moment someone closes a sale you immediately give them a high five right that is positive reinforcement whereas on the other side we have punishment which is your dog jumps on the couch you hit him to get him down right your dog barks you close his mouth to shut him up so the difference between the two is what happens after the action right are you reinforcing an action you want more of or are you extinguishing an action that you want less of here's the thing both of these work let me give you two examples of how so you can understand and we can get into it okay and nobody freaking ask me about crypto right now this is just the company that I chose because it is a ruling example of this okay coinbase $1 billion doll company arguably less or more any other day but they have about 4,500 employees right majority of the employee base does not last past 15 months okay that's their tenure uh they have if you look on their glass door these are some of the quotes from it no work life balance most intense place I've ever worked never know when it's your time to go why is it that it still works right because the demand is high enough due to the pay and status of working at this place that they can afford to turn at that rate they can still get in good people pay them a lot of money and it will be fine that's just the truth so people like why is Big corpse such It's like because it works it does I'm not saying I like it I don't like it in fact fact what I like is this Neutrogena $4 billion company 750 employees average 10e 10.2 years absurd yeah what do people say about weh Neutrogena right I feel appreciated for my work there's flexibility in work life integration I feel like I matter right what do people value about working there they value the praise they get the good benefits and the fair pay notice I didn't say astronomical pay right people just want Fair pay so if this is true and you can build billion dollar companies using either of these things why use punishment at all well that brings us to what we discussed here right the tldr and really think about this guys yelling at people takes less skill than properly training people so people are more able to do this and so if you look at like for example when I worked at Subway when I was 15 that was my my first job I was a sarst uh when I was there I know I smelled like ham all the time uh it was pretty gross anyways my boss it's not like they were positively reinforcing me you know what she knew to do yell at me because if I go to someone I'm like hey I want you to positively reinforce a behavior you want more of they're like got it and then they don't do it because they're like what does that mean but if I'm like hey yell at them if they do something wrong they're like amazing I got it it takes less intelligence to punish people and it does positively reinforce people it doesn't mean that you're like a badass that you're cool that you're like oh I'm just laying down the law it's like no no no you're being lazy so why is it that people are less apt to switch to this right so the way that positive reinforcement works is that it is slower to start out but then once it takes off it creates a longer lasting result of behavior change so then why why if we use behavior science why is it that people are less likely to do this because you see less in the beginning it's kind of like when you put someone on a sustainable weight loss plan and in the beginning they're like I've only lost two pounds this week and you're like that's pretty good what if you did that for a year and they're like but I need to lose 10 now right and then they go back to their detox with their tea now on the other side you have punishment right so punishment is much faster to start I bet you if you guys if your dog jumps on the couch and you just whip the out of him he ain't GNA jump on the couch again is he not in front of you just being real uh but what it does right it's faster to start it creates a long-term dysfunction in the behavior adherence because the the other person on the other end will only abstain from the behavior when the threat is present anybody ever come home and their dog is literally on the couch and you're like why the I've told you so many times not to get on the couch every time you jump on the couch I'm like get off get off right well when you're not home you're the threat so when you're not there the threat's not present so of course he goes on the couch he doesn't actually give a about the couch he doesn't feel good feel rewarded when he's not on the couch he just knows he has to avoid it when you're around right so what happens is people when the threat is present will adhere and they will rebound when it's not so they both work but what's the cost and I want you guys to pay attention to this next slide because some of you will relate to the left side and some of you relate to the right side the cost of punishment what does it feel like what does it feel like to have a punishing environment at work right one it creates an environment of secrecy people are too afraid to reveal mistakes because they don't want to be punished they're trying to avoid it right and so then they don't actually tell you problems that are going on anyone here ever have people hide problems from them they're probably scared of you right whether you mean to or not we do not have to try to purposely punish people we can do it with a glance right the second is that it causes significant significant anxiety and stress and so when you go into a workplace where people are constantly stressed and anxious it's usually because they're walking on eggshells because again they're worried about being punished third over time creates resentment from the employee to the boss so if everyone's ever felt like over enough time it's like all my trainers left and took all my clients or something like this it's like there was something going on that was creating that resentment right some people were feeling suppressed or punished it removes feeling of autonomy from workers and creates a feeling of imprisonment right what happens then people do the minimum work not to get fired this is due to being punished this is not because people are stupid or lazy you miss out on discretionary effort loyalty tenure and Innovation those are all the things you don't get when you rule with punishment you're not going to have people innovate for you because guess what they don't give a about you you're not gonna have people stay for a long time because again they're just trying to get the out and you're not going to have people that are give you showertime thoughts because they don't feel like they're getting that from you right and so people work will work as hard as the bar is high so you just have have to keep raising the bar of what is minimally okay to not get fired and that is the only way that you can get them to perform and that is what most companies are run by now on the other side we have positive reinforcement right this creates an environment of security because people are encouraged to make mistakes and discuss them we openly talk about making mistakes right we encourage and thank people for making mistakes because it means they tried right teammates feel a sense of security and excitement when they come to work in fact you'll see them showing up earlier they stay later because why they like being there they don't feel scared over time it creates immense loyalty and Trust From the employee to boss and vice versa so you feel like a intense bond with the people that you work with you Empower your teammates they do more work than anybody expects of them including you because they like it not because they have to but because they want to it motivates teammates to utilize discretionary effort at work right so you get the shower time that you don't get if you use punishment and people work hard because they enjoy the consequences of their hard work they enjoy feeling like they have somewhere that they can make an impact and somewhere where they are rewarded for working hard so in short what does this mean really simple we do more of the stuff we like and we do less of the stuff that we don't like work is included like if you guys don't like your business business you probably trying to avoid it sell it what the ever right same goes to people that work for you so if you've got your boss over here you're going to be on the other side over there doing things you do want to do so if you've ever had anybody who's like you know they used to be really involved at work and used to feel like you got a ton of discretionary effort and then all of a sudden you feel like man they're like doing all this other stuff outside of work and they're like spending way time with their friends and going out and doing all these things why is that something happened something punishing so that person no longer gets positive reinforcement from their work they get more of it from outside of work therefore they do more of the thing they like which is outside of work and so if we're forced to do the stuff that we don't like we do the minimum to get by or to avoid punishment okay so if somebody feels like they have to keep the job to make a living for their family they will do the minimum so that you do not fire them and nothing more right and so if your employees don't like you or like the work they will just give you the min minimal effort to maintain the job okay anybody in here have someone on their team that does the minimum not to get fired I figured yes does anyone here do the minimum not to get I'm kidding great so the question is how do we actually do this because you know what I hate I hate when people go up and they're like let me talk about leadership you need trust and loyal what the does that mean you know what I mean like we need trust and loyalty and we need people to be nice and positive it's like okay that's great and I agree with all of that but how do you do that on a tactical basis is what has frustrated me for years and so my goal is that I'm going to help you guys operationalize leadership we're going to go over three principles these principles are going to be tactical I want you guys to be able to actually do this because leadership people can say all they want you can say you're honest you can say that you value people you can say all these things if you do not exhibit the behaviors that support those things it doesn't matter and the issue is actually not that a lot of people don't want to it's that they don't know how and so I would like to give you the how today we're going to go over these three things starting with the first principle which is latency over intensity let's go so latency is the time between events so if you have low latency there's less time between events if you have high latency there's more time between events intensity is the power of that event so what this means is that the timing of your response to a behavior matters more than the power of your response we do things that we have learn to do we learn by experiencing things that happen to us okay therefore the things that happen closest AKA low latency to a behavior or event matter the most the that happens immediately after not a day after not a week after even if it's bigger and more intense doesn't matter okay the things that happen closest to an event or behavior of the past determine how we behave now so something that happened to you in the past say I'm speaking on stage right now right maybe in the past people booed me so maybe I show up here and I act like a little n right why am I acting like an N because the last crowd booed me not because of this crowd it has nothing to do with you guys anyone ever dated somebody who just treated them like and you're like why it's like she's like getting the she's getting back for her last boyfriend it's not you you know anybody ever had a terrible hangover after drinking but still drink again if you don't raise your hand you're lying okay so the reason that you do just so you understand this okay because none of you have done this uh this is because the closest feedback to drinking you drink the first next thing that happens is you feel good not The Hangover The Hangover happens later had a delay so even though the hangover was awful and you were throwing up and you didn't even make it to work the next day the fact that it was at a delay makes it more likely that you will drink again unless the next time you take a drink you vomit immediately seriously there are endless behaviors like this in the workplace okay say you've got some of your team they're afraid to tell you that they messed up why in the past they got punished for messing up has nothing to do with you has everything to do with what happened last time say you have somebody who's afraid to speak about a meetings I see this all the time what does that mean in the past they were punished for speaking on meetings say you have somebody who doesn't meet their minimum kpis for calls right and you're like why is it I told you what the kpis are why are you not hitting them do you not understand what that means they do understand what it means in their last job because in their last job they got to keep their job without hitting their kpis because they didn't hit their kpis for two years and still didn't get fired right somebody comes in late to work the last boss was never around so it didn't matter anyways if they were late somebody speaks to you with an arrogant tone right the last boss let them walk all over them so it didn't matter there were no consequences your employees are not stupid your employees are doing what they have been trained to do whether that is by you or their past boss if you do not reinforce the behaviors that you expect you will get the behaviors that their last boss expected okay and if you have failed to change their behavior you are likely not a skilled enough teacher to train people below a certain skill level the less skilled the teacher the more skilled the student must be if you want to become a better teacher learn this right now when you spot a behavior that you want more of okay so let's say it's doing more cold reach outs than you asked let's say it's clocking in early let's say it's staying late let's say it's a teammate owning a mistake someone taking work off your plate someone helping another teammate someone saving a member whatever it might be you want to immediately reinforce that behavior what you guys need to understand is that if you reinforce enough of the behaviors that you want more of the things that you don't want to have happen eventually they will have no energy left to do those things you don't even need to punish them because they're so focused on doing more of the things that you reward they literally forget and extinguish the other behaviors so you need to immediately reinforce remember low latency not the power so what does that look like a lot of people are like oh I got to give these huge cash annual bonuses all this no you don't you know what would be better if you slack them and said you did a great job immediately the moment that they finish if you give them Kudos in front of your team the moment that they finish if you post about them on social media immediately if you give them a high five when they finish running that class that they crushed right if you give them a small gift card cash bonus maybe it's like a gift card and you say take tomorrow off and go do this instead if you want more of a behavior quickly reinforce force it this is why many people try they're like put in place recognition programs and they put in place all these like huge incentives of like in at the end of the year you're going to get all this money it doesn't matter because all the things that happen in between are what matter the small things that happen after the person does it nothing can substitute for that the high fives the people always ask me they're like Lea how do you build such a great culture and I'm like this is actually C serious seriously these tiny micro movements it's not the big stuff that matters it's the latency of the small stuff and on the other side of that and for some of you this is an issue is that if you want less of a behavior you slowly reinforce it so think about things right now that you want more of that you are slowly reinforcing right there are lots of things in businesses again like the huge cash bonus at the end of the year people would do way better if you took that cash bonus split it up put it over like every week and then just handed them like a $100 bill so we want to think through these things because this works in both directions if you want less of something slowly reinforce it or don't at all if you want more of something you quickly reinforce that thing that is latency over intensity wonderful the next one we've got criticism and insults this is a large culprit for for firsttime leaders let's define terms again okay criticism or a critique a critique articulates the difference between the actual and the ideal what's the difference if you guys have ever watched any my content on accountability you would also see this right it's the same thing it's just like what are they doing what's ideal where what's the difference we're just letting somebody know of the difference versus right what is an insult an insult compares the subject to something that is aversive something they don't like something that is negative so many leaders right confuse criticism with insults and wonder why their teams don't change and in fact in the last few years people have said that criticism is bad like oh we shouldn't criticize at all well actually I think we should I think that we Define terms incorrectly to critique somebody is what it means to teach somebody how do you teach somebody if you don't explain to them what good looks like you can't but a lot of people again insult people and think it's a critique right so let's look at some examples criticism right articulating the difference between actual and ideal here's two examples of exactly how I would say something to somebody at work right Johnny the goal is to make a hundred dials a day the last six days you made 60 what do you think we could do to make $100 a day I'm letting him know of the ideal and engaging him to help me get there another one Sarah you ran the class in 45 minutes when it's a 60-minute class next time why don't we take the full rest break so we can make it 60 you think those things sound mean they don't sound to meaning they don't sound suppressive right that is how you critique now on the other hand what a lot of people do is Ladder they insult right this is what a lot of leaders do or bosses right Johnny you remind me of Ted he never worked hard enough to stay on the team he lost respect from everybody you need to hit those dials you remember what happened to Ted comparing him to something a versa Sarah you only R in the class for 45 minutes we can't accept laziness around here does anybody know someone that speaks like that yeah it sucks I see some big head nods but you don't want to raise your hand okay he's like they're sitting right next to me so the question is this do you want to make your teammates feel bad or do you want them to get better this is a serious question if you want somebody to feel bad insult them if you want them to get better you critique them and actually the two don't happen at the same time so if you make somebody feel bad you steal their energy away from getting better this is something that took me time to learn because it's like when someone really really up you're like no they've got to like this hurts so bad like they've got to feel it right it's like but why what do I want to have happen next if I want them to get better making them feel worse robs them of that energy to do so so if you want someone to get better you deliver criticism you critique them whereas if you want someone to feel bad and stay stuck then you insult them so if there's anyone here who'd like to sabotage just insult them like yeah the guy next door no so anyone in here realizing why their spouse doesn't like their critiques very common right you never take out the trash right you're so messy oh my God I don't know how you do this you promised you would do X Y and Z but you never do it's just like your brother just like insulting your spouse doesn't work neither does is insulting your employees it's the same stuff it's like you ever see that couple they're always just like insulting each other back and forth you're like in the room with them or at a dinner it's just like very uncomfortable and you're like I would like to leave now but I can't because the dinner only the bread is here yeah we've all been there right but the same goes for people with their employees right where it's like you constantly you see these people that you're in the room and you're like cringing because you're like how could you talk to somebody this way there's no way it's actually helping them right but here's the thing guys is that some of us in here just don't understand this these Concepts I think a lot of people in this room probably really want to be great leaders I think a lot of you want to improve yourselves you want to improve your communities you want to improve your business you want to improve your employees but then we don't understand how and these are the main pieces to get there because a lot of the times things that are punishing are not done on purpose like it could be a glance that could punish somebody because if I for example if we use the uh example of latency right if somebody comes up to me and then they tell me the mistake they made and the first thing that happens is before my mouth opens to say that's okay thank you so much is like what are they going to feel they're actually going to feel punished because my face responded before my mouth and so what's going to happen they're going to feel punished they're going to avoid telling me again being a leader is tough right so the question is this how do we actually critique somebody because I think there's a lot of out there about this and I think I did it wrong for a long time because I listen to all these traditional books and these bestsellers on the you know Wall Street Journal and all these people who have actually never run businesses talk about how to deliver criticism and it's all just a bunch of so let's talk about how we actually critique somebody okay six things and I'm going to make it really Tactical for you guys because I think it's very important the first piece is that a critique has to have direct ties to behaviors under their control okay not to someone else's behaviors not not a behavior that's uncontrollable by them not that's one that has to do with them plus seven other people behaviors that are under their control specifically that's the first piece now the second is that the performer or the employee has to know what the critique means because they have to have the Baseline skills this happens all the time is that you hire somebody and you're like I'm telling them that their tonality sucks but they're not changing their tonality well the reason is because you didn't assess for what Baseline skills were needed doesn't even know what tonality means how can he improve something he doesn't even know what it means but we do this all the time the third and the most obvious One faster and more frequent feedback loops work best okay so more and faster is always better than less and slower even if the lesson slower is longer and more elaborate and all these things doesn't matter relevant might as well save your energy fourth we want to make it personal we want to tie their behavior into their behavior rather than a group so for example if you're delivering metrics to show somebody's performance then it makes sense that we deliver their individual metrics rather than the group metrics so we want to get as personal as possible with the feedback fifth is that an authority like everybody here in the room collects the data and feeds it to them right so you're collecting the data and then you're sharing the data with them okay now on the other side and this is very important the last one they also collect the data and then share it with you so I want to make this real for you guys on the next slide here's a very tactical example that is probably one that all of you in this room can use which is sales okay so what do I how do I critique A salesperson first I'm going to critique A salesperson on their close percentage right specifically in the business that I have for example uh rather than total closes why because they have no control over how many leads they get in their pipeline okay or are on their calendar but they do have control over what percentage of those leads they close there's a lot of times where people see in the past they're like well you know and then the next goes it's like maybe they should be going out and getting more leads it's like If you hired somebody who has the skill of doing that but that brings us to the second point which is like do they even know how to do that right so that's the first piece you want to make sure that the thing that you're kriging them about is a thing that is completely under their control the second if I tell a salesperson to improve tonality to keep the frame to use this framework to follow the script right it's because I know that they know what doing that means and how to do it because these are things I taught them when I onboarded them so often times what you see and I know that is is probably resonating with a lot of you guys is that we give someone a critique and then we're like God how do they not know how to do this it's like because you didn't teach them and if you didn't teach them and you expect them to come with it knowing how to do it then did you interview them for it did you do a skill test for it we cannot assume people just because they sold at a last company doesn't mean the same thing they do when they sell here completely different skills completely different ways of doing things right so we never want to assume right we have to understand what Baseline skills we hire for and if we're critiquing somebody we have to know that when we give a critique that they understand what it means because if somebody doesn't know how to improve tonality and you tell them to go do that then they're going to feel very shitty third is that we want to give the critique at the rate of the behavior so that means after every sales call some sort of feedback system right so for example in the best portfolio companies we have people are the sales managers are literally doing calls daily with every single person okay now they can't do it after every single call that would be impossible when you have a team of 20 or 30 people right but what they can do is that they have slack threads where people are constantly giving them updates about their calls and then they're getting reinforcement from them in there and that is even more powerful than having a daily meeting because that slack thread where they can immediately say great job great win great closeth all these things that's actually more useful and going to reinforce the behavior more than even a daily meeting because it's happening closer to the behavior fourth right I would give individual sales reps critiques rather than the group so that it's most relevant to them so a lot of times what you see in big companies for example is people get really fed up being in a big company because they feel like they're constantly getting punished for the one or two people that didn't do something right and so we want to make sure that we're not punishing the group for two people that maybe aren't hitting their metrics because then it feels like the whole group's like hey do you not see that I'm like crushing it this week it's like we have to read the room the last one or second to last is that the sales manager is going to present the individual data to each salesperson right so like in our best portfolio company for example the sales manager sends the stats each week to the sales team and asks them for their feedback they're like what do you think of your numbers this week open-ended question now at the same time each of those sales reps right also document their own data on a daily basis and then are asked to critique themselves so at the end of their daily stats just says what do you think how do you think you did today and they just send it in it's already shared with the sales manager and the sales manager can see it every day this is what critiquing somebody looks like it's a lot of work but this is how you do it right and this is why so many people don't understand like why can't I build an amazing culture why is it that people are leaving why is it because this stuff takes a lot of work and effort and it's also taken me years to understand that a lot of stuff that people have taught us and a lot of the traditional things that people say about how to give people feedback and all this stuff honestly doesn't work super well and listen I'm not saying this is like the Bible or anything like that I'm just saying like this has worked super well for me and all of our portfolio companies so do you guys think if you committed to using just one of these six principles that you would improve your team great let's move on to the next one so we have latency over intensity we've got criticism versus insult and we have future versus past so the best leaders create a vision so compelling that their team is so focused on moving forward that they think not to look back okay the best leaders also understand right in order to move forward you must direct people into the future rather than resurrect the past you focus them on what they can do right tomorrow rather than what they did wrong yesterday so Focus focusing on the past and why something occurred gives zero direction as what to do next and often leaves people feeling shitty let's define some terms here when we talk about talking about the future versus the past so future Focus feedback feedback that tells people what to do in the Future Past dwelling feedback feedback that tells people what they did wrong in the past why is it important to use future feedback right where you're focusing on the future you're talking about what to do next okay has anyone ever heard of like the pink elephant in the room it's like don't think about the Pink Elephant don't think about the Pink Elephant don't think about the Pink Elephant what are you thinking about the pink elephant don't think about how you up that last sales call don't think about how you up that last sales call don't think about how your tonality sucked don't think about the fact that you didn't close anybody last week the Mind goes in the direction of the dominant thought regardless of there's a if there's a not or if there's a don't right this is called ironic process Theory this is why focusing on the past doesn't work in fact it keeps people stuck more than it helps them get better and it doesn't make them feel good either again stealing their power from doing something better so for example when we insult somebody or we talk about the past we make it clear that we don't know what people want to do but we leave people with zero clue as to what to do next all right so have you ever told somebody what they did wrong and wondered why they didn't do it right next time you're like I said what you did wrong but then he didn't do what I wanted him to do it's like yes because you didn't tell him how to do it right you told them what you didn't like you didn't tell them what you did like it's like all right let's just say like for example every time I get my nails done right for like the first I want to say like four years of my relationship with Alex I get my nails done and I would be like what do you think and he'd be like what's for breakfast again and I was like what the right and so finally I was like dude it was like years of guessing it's like every time I would show my nails it'd be something like Chrome he'd be like I could just see by his face it's like he just trying to avoid the question he didn't want to punish me but he also didn't want to tell me he liked it because he didn't like it right so finally I was like what would you like me to do he was like always get French I was like that's it he's like yes so what have I done now I always get my D's friend because I asked him what do I do next time rather than what do you not like I know it's a silly example but it's true so here's what we want to start doing okay we want to go and shift from feedback that focuses on the past to feedback that focuses on we want someone to do next in the future what does this look like so instead of saying don't run the class like that again we say next time time we run the class would you take the 60-minute rest breaks don't speak so softly when you're on the phone instead of saying that when you're on the phone try raising your voice like when you're speaking to a client when the gym is loud giving them Direction you shouldn't talk to clients about personal matters so often next time a client brings up a personal matter with you just gently try to change a subject by saying something about the weather right we can never have something like that happen ever again what do you think we could do better next time stop saying the price when you're on the sales call with prospects instead of saying the price let's just tell them it's expensive let me know how it goes right so instead of telling people what we want them to stop we want to tell people what we want them to do right kind of like I'm doing right now literally what I'm doing right now stop telling people what we want them to stop doing start telling people what we want them to do instead we're not saying don't do something we're giving them an alternative and that's why I want you guys to understand is that when you're directing somebody into the future we're giving them an alternative Behavior you can't tell somebody if you tell somebody to stop doing something and give them no Alternatives what do you think is is going to happen you guys know how this goes it's like stop eating dessert you're still fat would any of you actually do that no you know what you'd probably do why is it that there's all these like protein desserts and there's all these like low calorie desserts and there's all these other things that we do and oh there's decaf coffee and tea and all this stuff right because Alternatives work better than telling someone to stop doing something so the same goes for our teams we have to give them a alternative that is good enough that they'll stick with doing that thing instead of the past Behavior so don't do the tea at least do a fudgicle they're like 40 calories it's actually a hack for you guys bules 40 calories I learned that the other day it's amazing so we want to trade assuming that your team knows what to do for telling them what to do instead and a lot of you guys in here are afraid to tell people what to do some of you are too nice you're like no I don't want to tell them what to do because I don't want them to feel like I'm micromanaging them what you're giving them Clarity like giving someone's instructions for how to do their job and what you think good looks like is literally your job it is not micromanaging micromanaging is like once you've given them clear instructions and you've set the vision you check in every 5 Seconds say hey how's that going hey what's this Hey where's that thing at right oh well what if you could you do it like this instead actually I do it like that like being nitpicky that's what micromanaging is giving someone clear direction is being a good boss right and that is how you create a culture where people want to stay and where you get the returns of somebody staying at your company for 10 years and so the traditional ways of giving hard feedback I'm just going to say are wrong because they have you doing three things that are the opposite of this focused on insulting someone at a delay in a way that gives them zero idea of what to do next do we think people will get better if we do that I don't think so of course it's hard to have those conversations because you're literally doing it the hardest way possible and it doesn't even work that's the thing and that's why I'm passionate about doing this because I don't when people are like oh queen of having hard conversations guys it's not hard to tell someone what you want them to do instead it's hard if you feel like you have to tell someone they're an and they suck at life but that doesn't make them perform any better at work they're probably going to quit anyways once you say it so if you would like to make your life a little bit easier and your business a little bit better give these three principles a try we've got latency over intensity we have criticism versus insults and we have future focused feedback over past focused feedback okay so what did we cover there's positive reinforcement and there's punishment both compel people to do things at work there's a cost to each of them punishment works in the short term positive reinforcement works better in the long term latency matters more than intensity you want to critique somebody rather than insult somebody and you want to focus them on the future right rather than focus them on resurrecting the past do you guys remember that invisible force that keeps your business stuck I talked about one time in the very beginning anyone know that Meme does anyone feel that Meme right now we feel it hard I love it guys thank you so much I talked about one time in the very beginning anyone know that Meme does anyone feel that Meme right now we feel it hard I love it guys thank you so much
