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LibraryofCongressCataloging-in-PublicationDataNames:Tracy,Brian,author.

Title:Getsmart!:howtothinkandactlikethemostsuccessfulandhighest-paidpeopleineveryfield/BrianTracy.Description:NewYork:JeremyP.Tarcher/Penguin,[2016]

Identifiers:LCCN2015042921(print)|LCCN2015046737(ebook)|ISBN9780399183782(hardcover)|ISBN9780399183805(ebook)

Subjects:LCSH:Decisionmaking.|Thoughtandthinking.Classification:LCCBF448.T732016(print)|LCCBF448(ebook)|DDC—153.4—dc23

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Contents

TitlePage

Copyright

Introduction—UnleashtheImprisonedSplendor

1.Long-TimePerspectiveVersusShort-TimePerspective

2.SlowThinkingVersusFastThinking

3.InformedThinkingVersusUninformedThinking

4.Goal-OrientedThinkingVersusReaction-OrientedThinking

5.Result-OrientedThinkingVersusActivity-OrientedThinking

6.PositiveThinkingVersusNegativeThinking

7.FlexibleThinkingVersusRigidThinking

8.CreativeThinkingVersusMechanicalThinking

9.EntrepreneurialThinkingVersusCorporateThinking

10.RichThinkingVersusPoorThinking

AbouttheAuthor

Introduction—UnleashtheImprisonedSplendor

Truthiswithinourselves;ittakesnoriseFromoutwardthings,whate’eryoumaybelieve.Thereisaninmostcentreinusall,Wheretruthabidesinfulness;...Andtoknow,RatherconsistsinopeningoutawayWhencetheimprisonedsplendormayescape,ThanineffectingentryforalightSupposedtobewithout.

—ROBERTBROWNING

WILLIAMJAMESOFHARVARDWROTE,“Thegreatestrevolutionofmygenerationisthediscoverythatpeople,bychangingtheirinnerattitudesofmind,canchangetheouteraspectsoftheirlives.”

Youandyourmindareextraordinary.Youhave100billionbraincells,eachconnectedbygangliaandneuronstoasmanyastwentythousandothercells.Thetotalnumberofthoughtsthatyoucanthinkisthereforeequaltoonehundredbilliontothetwentythousandthpower.

AccordingtothebrainexpertTonyBuzan,thismeansthatthenumberofideasyoucangenerateisequaltothenumberonefollowedbyeightpagesofzeros,morepotentialideasthanthenumberofallthemoleculesintheknownuniverse.

Thequestionis,“Howareyouusingthispowerfulmentalsupercomputer?”Youhavethementalabilityrightnowtosetanygoalandachieveeverything

youcouldeverwantorhopeforinlife.Byusingyourbrain—yourabilitytothink,plan,andcreate—withgreaterprecisionandaccuracy,youcansolveanyproblem,overcomeeveryobstacle,andachieveanygoalyoucansetforyourself.

Yourmentalsupercomputerissopowerfulthatyoucouldnotuseyourfullpotentialifyouhadahundredlifetimes.

10PercentofPotential

WhenIwastwenty-one,IwasimpressedwhenIheardthattheaveragepersonusesonly10percentofhisorhermentalability.Ilaterlearnedthatthetruenumberiscloserto2percent.Mostpeoplehaveenormousreservesofmentalcapacitythattheyfailtouse,thattheyareapparentlysavingupforsomegoodreason.

Imaginethatyouhadinheritedabankaccountcontaining$1millionandgrowingregularlywithinterest.Butyouonlyeveraccessedtwentythousanddollarsofthisamountbecauseyoulackedthenecessarycodetoacquiretherestofyourmoney.Theremainderofthiswealthwasyours,butyoucouldn’tgetatit,becauseyoudidnotknowthecorrectaccountnumberthatwouldreleasethesefundstoyou.

Thisisthesituationofmostpeople.Theyhaveenormousstoresofmentalabilitythattheyhabituallyfailtouse.

Inthepagesahead,youwilllearnaseriesofsimple,practical,provenwaystotapintomoreandmoreofyournaturalthinkingtalentsandabilities.Youdonotneedtobecomemorethanyouareorsomeonedifferent.Youonlyneedtobecomeallthatyouarealreadyandtounleashmoreofyourexistingmentalpowers.

LearntheCombinations

Lifeislikeacombinationlock,onlywithmorenumbers.Allcombinationlocksworkinthesameway.Youturntothefirstnumber,backpastthatnumbertothesecondnumber,andforwardtothethirdnumber.Ifyouhavetherightnumbers,thelockopens,whetheritisabicyclelockoragreatvaultinamajorbank.

Imaginethatyouknewallthenumbersbutonetounlockthesuccesscodeinwhateveryouwantedtodo.Lackingonekeynumber,youcouldspinthedialforeverandnevergetintotherichescontainedinsideyourmentalvault.

Butwithoneextranumber,inthecorrectorder,thevaultwouldopen,andyoucouldachieveextraordinarythingswithyourlife.

Thisbookcontainssomeofthebestcombinationseverdiscoveredintermsofthinkingtoolsthatenableyoutomakequantumleapsinyourlife.Inmanycases,whatholdsyoubackissimplyamatterofperspective,yourparticularwayoflookingatthings.

YourExplanatoryStyle

Dr.MartinSeligmanoftheUniversityofPennsylvaniacallsthewayyouexplainorinterpretthingstoyourselfyour“explanatorystyle.”

Thiscanbeassimpleasthedifferencebetweenoptimismandpessimism,theglassseenashalf-fullorashalf-empty.Theoptimistlooksforthegoodandwhatcanbegainedfromeverysituation,whilethepessimistlooksfortheproblemordownsideineachsituation.

ButasJoshBillings,thewesternhumorist,oncesaid,“Itain’twhatamanknowswhathurtshim;it’swhatheknowsthatain’ttrue.”

Ignoranceisnotbliss.Thefailuretousetheappropriatethinkingtoolsandstylesinaparticularareaorsituationcanbedisastrous—andoftenleadstooverwhelmingfailure.

LookfortheGood

Veryoften,whenyouchangeyourperspective,youseethingsdifferently,makedifferentdecisions,andgetdifferentresults.NapoleonHillsaysinhissuccessclassicThinkandGrowRichthat“withineveryproblemordifficultythereliestheseedofanequalorgreaterbenefitoradvantage.”

Afterinterviewingmorethanfivehundredofthewealthiestself-mademultimillionairesinAmerica,hefoundtheyallhadcertainqualitiesincommon.Oneofthesecommondenominatorswasthatthewealthypeopleinhisresearchhaddevelopedthehabitofalwaysseekingthevaluablelessonineverysetbackordifficulty.Andtheyalwaysfoundit.

Mostoftheirfortuneshadcomeaboutastheresultofapplyingthelessonstheyhadlearnedthroughfailureandhardshiptodevelopingbreakthroughproductsandservicesthateventuallymadethemrich.Butwithoutthetemporaryfailuresandthelessonstheycontained,theywouldstillbeworkingforwages.

Hereisasimplewaytotransformyourthinkingtothatofthemostpositiveandsuccessfulpeopleinoursociety.Thinkaboutthebiggestproblemthatyouhaveinyourlifetoday.Nowimaginethatthisproblemhasbeensenttoyouasagift,toteachyousomething.Askyourself,“WhatisthelessonorlessonsthatIcanlearnfromthissituationthatcanhelpmetobehappierandmoresuccessfulinthefuture?”

Perhapsyourbiggestproblemtodayisnotaproblematall.Perhapsitisanopportunity.AsHenryFordsaid,“Failureismerelyanopportunitytomoreintelligentlybeginagain.”

ADifferenceofPerspective

Youhaveheardthestoryofthesixwisemen,allblind,attemptingtodescribeanelephanttooneanother.Eachofthewisementouchesanddescribestheelephantdifferently.Allarecorrectfromtheirindividualperspectives.

Onetouchestheearandsaysthattheelephantislikeathickblanket.Anothertouchesthetuskanddescribestheelephantassharpandpointed.Onefeelstheleganddescribesitasbeinglikeatreetrunk.Onetouchesthesideoftheelephantanddescribesitasawall.Onegrabsthetailanddescribesitasarope.Thelastwisemantouchestheheadanddescribesitasarock.Eachofthemisrightfromhisownperspective,butallofthemarewronginmanywaysbecauseoftheirfailuretoseetheelephant,thesituation,initstotality.

Whatisyourperspective,yourattitudeaboutyourselfandyourworld?AnaïsNinwrote,“Wedonotseetheworldasitis,butasweare.”

TheGreatDiscovery

Perhapsthegreatestdiscoveryinhumanhistoryisthat“youbecomewhatyouthinkabout—mostofthetime.”Yourbeliefs,eitherpositiveornegative,helpfulorhurtful,largelydetermineeverythingyoudoandhowyoudoit.

Whatdoyouthinkaboutmostofthetime?Andhowdoyouthinkaboutit?AsWayneDyerwrote,“Youdon’tbelievewhatyousee;youseewhatyou

alreadybelieve.”JimRohnsaid,“Everythingyouhaveinyourlife,youhaveattractedto

yourselfbythepersonyouare.Youcanchangeyourlifebecauseyoucanchangeyourthinking;youcanchangethepersonyouare.”

MybestsellingbookistitledChangeYourThinking,ChangeYourLife.Anditstitle’smessageistrue.

Asyoulearnandapplythesedifferentwaysofthinking,youwillbegintochangethepersonyouareinside.

BytheLawofCorrespondence,whichsays,“Aswithin,sowithout,”yourouterlifewillbegintocorrespondtoandmirrororreflectyourinnerlife.Asyourinnerlifechanges,yourouterlifechangestoreflectthisnewthinking.Shakespearewrote,“Thereisnothingeithergoodorbad,butthinkingmakesitso.”

Let’sbegintolearnaboutandthinkthewaysthatthemostsuccessfulandhappypeoplethinksothatyoucangettheresultsandenjoytherewardsthatthemostsuccessfulpeopleenjoy.

1

Long-TimePerspectiveVersusShort-TimePerspective

Menareanxioustoimprovetheircircumstances,butareunwillingtoimprovethemselves;theythereforeremainbound.Themanwhodoesnotshrinkfromself-crucifixioncanneverfailtoaccomplishtheobjectuponwhichhisheartisset.Thisisastrueofearthlyasofheavenlythings.Eventhemanwhosesoleobjectistoacquirewealthmustbepreparedtomakegreatpersonalsacrificesbeforehecanaccomplishhisobject;andhowmuchmoresohewhowouldrealizeastrongandwell-poisedlife.

—JAMESALLEN

THEBETTERYOUTHINK,thebetterresultsyouwillgetandthemoresuccessfulyouwillbeineveryarea.Themostimportantmeasure,theonlymeasureofthequalityofyourthinking,istheresultsyouget,theconsequencesofwhatyoudecidetodoasaresultofthedecisionsyoumake.

MiltonFriedman,theeconomist,oncewrote,“Thebestmeasureofqualitythinkingisyourabilitytoaccuratelypredicttheconsequencesofyourideasandsubsequentactions.”Hispointwasthateconomictheorydivorcedfromwhatactuallyhappenedwhenthattheorywasappliedwasclearlyincorrect.

Consequencesareeverything!Theonlyquestionis,“Didyourideaworkornot?”

Somepeopleareconfusedabouttheimportanceoflong-termconsequences.Theythinkthattheirintentionsaremostimportant,nottheresults.Thisisamajorcauseofconfusioninoursocietytoday.

Theysay,“IfIintendforgoodthingstohappenastheresultofmyideas,mydecisions,andmyactionsandtheydon’t,youcan’tblameme.”

Yourabilitytoaccuratelyforeseeandpredicttheconsequencesofyourdecisionsandactionsisthetruemeasureofyourintelligence.

WhatIsIntelligence?

IntelligenceisnotamatterofIQ,gradesinschool,oryearsofstudy.Intelligenceisinsteada“wayofacting.”Thismeansthatifyouactintelligently,youaresmart.Ifyouactstupidly,youarestupid,irrespectiveofgradesormeasuresonIQtests.

What,then,bydefinition,isanintelligentact?Theanswerissimple.Anintelligentactissomethingyoudothatmovesyouclosertosomethingyoureallywant.Astupidactissomethingyoudothatdoesnotmoveyouclosertosomethingyouwantor,evenworse,movesyouawayfromit.

Youpersonallydefineasmartorstupidactwhenyoudecidewhatyouwantandwhatyoudon’twant.AsWinstonChurchillsaid,“Ilongagostoppedlisteningtowhatpeoplesaid.Instead,Ilookatwhattheydo.Behavioristheonlytruth.”

ActionIsEverything

Howcanyoutellwhatapersonreallywants,thinks,feels,believes,andiscommittedto?Simple.Youjustlookathisorheractions.Itisnotwhatpeoplesay,wish,hope,orintendthatcounts.Itisonlywhattheydo,andespeciallywhattheydowhenfacedwithtemptationorputunderpressure.

Someonesays,“Iwanttobesuccessfulinmycareerandinlife.”Heactuallybelievesit.Butthenyouobservehisbehavior.Thispersonarrivesatworkatthelastpossibleminute,leavesatthefirstpossibleminute,andhurrieshomesothathedoesn’tmissthelatestepisodeofhisfavoritetelevisionshow.Clearly,basedonhisbehavior,hisgoalisnottobesuccessfulinhiscareerbutrathertowatchtelevision.Howdoyouknow?Becausethatisexactlywhatheisdoing,everynightafterwork.

DidItWork?

Theonlyrealmeasureofyourdecisionsandactionis“Diditwork?”Didyouraction,basedonyourthinking,moveyoutowardsomethingthatyouwantedorsomethingthatisimportanttoyou?

Therearetwolawsthattrippeopleupallthetime,inpersonallife,inpolitics,andininternationalaffairs.TheyaretheLawofUnintendedConsequencesandtheLawofPerverseConsequences.

TheeconomistHenryHazlitt,inhisclassicEconomicsinOneLesson,wrotethathumanbeingsareself-seeking.Therefore,everyactionisanattempttoimproveone’sconditionsinsomeway.Peoplealwaysseekthefastestandeasiestwaytogetthethingstheywantassoonaspossible,withlittleconsiderationofsecondaryconsequences.

Hazlittsaidthatthedesiredresultofanyactionisalwaysanimprovementinconditionsofsomekind.Theimprovementistheprimaryconsequenceaimedat.Itisalwayspositive.Allactionisfocusedonimprovementofsomekind.

ConsidertheConsequences

Butitisthesecondaryandtertiaryconsequences—whathappensafterwardandafterthat—thataremostimportant.TheLawofUnintendedConsequencessaysthatinmanycasesanactorabehaviorbringsaboutimmediatepositiveresults,intheshortterm,butthelong-termconsequencescanbequitenegative.

Forexample,ayoungmanquitsschooltotakeajobtoearncashsothathecanbuyacar,socialize,gooutwithgirls,andhaveanenjoyablelife.Theseareallpositiveandimmediateaimsandgoalsthatyoungpeoplewanttoenjoy.

However,theconsequencesofalackofeducationareoftenalifetimeofdepressedearnings,littleupwardmobility,andthestronglikelihoodoftheindividual’sneverreachinghisorherfullpotential.

CreatingSomethingWorse

TheLawofPerverseConsequencesiswhathappenswhentheresultsofanapparentlypositiveactionturnouttocreateasituationthatisfarworsethanifnothinghadbeendoneatall.

Forexample,theimmediatebenefitofgivingmoneytopeoplewhoneeditinoursocietyistohelpthemandprovideforthemintheshortterm.

Theperverseconsequencescanbethattheindividualbecomesaddictedto“freemoney,”dropsoutoftheworkforce,becomesdependentonhandouts,andloseshispride,self-esteem,andself-respect.Theindividualendsupmuchworseoffthanifnothinghadbeendoneatall.

Insociety,theprimaryreasonforsocialprograms,givingmoneytothelessfortunate,isalwaysanattempttohelpthemtoimprovethequalityoftheirlives.Buttheperverseconsequencescanbecomealifetimeofdependencyandfrustratedpotential.

ThinkAhead

Inchess,withmanypiecesandmanypossiblemoves,yoursuccessisbasedonyourabilitytoaccuratelyanticipateorpredictthemovesofyouropponent.

Inlife,yoursuccessislargelydeterminedbyyourabilityto“playdownthechessboard”andtomakethosemovesthatleadtoultimatesuccessorvictory—howeveryoudefineit.

Dr.EdwardBanfieldofHarvardstudiedupwardsocialandeconomicmobilityintheUnitedStatesandothercountriesforalmostfiftyyears.Hewaslookingforthereasonswhysomeindividualsandfamiliesmovedupfromlowersocioeconomicclassestohighersocioeconomicclasses,generationbygeneration,sometimesstartingatlaboringjobsandbecomingwealthyinonelifetime.Whydidthishappentoasmallgroupofpeopleandnottoothers?

Today,in2015,intheUnitedStatesalone,therearemorethantenmillionmillionaires,mostofthemself-made;thatis,theystartedwithnothingandpassedthemillion-dollarmarkinthecourseofasingleworkinglifetime.Inaddition,accordingtoForbesmagazine(March2015),thereare1,826billionaires,with290newbillionairesin2015alone.Sixty-sixpercentofthesebillionairesarefirstgeneration,self-made.Theystartedwithnothingandearneditallinonelifetime.

TheCommonDenominator

Banfieldwantedtoknowthecommondenominatorofthesepeopleworldwide.Hesummarizedhisfindingsinaremarkablebook,TheUnheavenlyCity,whichwaswidelycriticizedandquitecontroversial.Itflewinthefaceofwhatmanypeoplewantedtobelieve,thatpovertyandwelfarewerelargelyinflictedoninnocentvictimswhohadnochoiceorcontroloverwhathadhappenedtothem.

Hisconclusionwassimpleandlargelyirrefutable.Indiagnosingtheeconomicsuccessorfailureofindividuals,heconcludedthat“timeperspective”wastheoverwhelminglyimportantfactor.

Banfielddividedsocietyintosevenclassesfromthelowesttothehighest:lower-lowerclass;upper-lowerclass;lower-middleclass;middle-middleclass;upper-middleclass;lower-upperclass;andupper-upperclass.

Itturnedoutthatateachlevelofsocioeconomicachievement,theindividualspracticedlongerandlongertimeperspective.Regardlessofwheretheyhadcomefrom,theirlevelofeducation,ortheircurrentsituation,theirtimeperspectivewastheonlyconsistentdifferenceintheirconditions.

TimePerspectiveandIncome

Atthelowestsocioeconomiclevel,lower-lowerclass,thetimeperspectivewasoftenonlyafewhours,orminutes,suchasinthecaseofthehopelessalcoholicordrugaddict,whothinksonlyaboutthenextdrinkordose.

Atthehighestlevel,thosewhoweresecond-orthird-generationwealthy,theirtimeperspectivewasmanyyears,decades,evengenerationsintothefuture.Itturnsoutthatsuccessfulpeopleareintenselyfutureoriented.Theythinkaboutthefuturemostofthetime.PeterDruckersaidthattheprimaryjoboftheleader,especiallyinbusiness,istothinkaboutthefuture;nooneelseistaskedwiththatresponsibility.Thisisyourresponsibilityaswell.

Thetoppeopleineverysocietyprojectedyears,evendecadesintothefuturewhentheymadetheirday-to-daydecisions.Theythoughtcarefullyaboutwhatmighthappenbeforetheymadeimportantorirrevocablecommitments.

Hereisagreatdiscovery:Theveryactofthinkinglongtermsharpensyourperspectiveanddramaticallyimprovesthequalityofyourshort-termdecisionmaking.

Because“youbecomewhatyouthinkabout,”theveryactoflong-termthinkingchangesthewayyouthinkandactinthepresent,therebyincreasingthelikelihoodofgreatersuccessinthefuture.

DetermineYourFutureIntent

In1994,GaryHamelandC.K.PrahaladwroteabreakthroughbookonbusinessstrategytitledCompetingfortheFuture.Inthisbook,theypopularizedtheconceptoffutureintent.

Theywrotethatthegreaterclarityyouhaveregardingwhereyouwanttobeinthefuture,theeasieritisforyoutomakecorrectdecisionsinthepresent.

Oneoftheirmostpopularideaswasthatifyourgoalistobealeaderinyourindustry,youmustprojectforwardfiveyearsandaskyourself,“Whatskills,abilities,andcompetencesmustwehavefiveyearsfromnowinordertobeoneofthetopcompanies?”

Whenyouhaveclearfutureintent,futureorientation,itbecomesmucheasierforyoutothinkwithgreaterclarity,tomakethosedecisionstodaythatwillenableyoutoachieveyourlong-termgoals.

Thecriticalwordinlong-termperspectiveis“sacrifice.”Successfulpeoplearewillingtosacrifice,todelayimmediategratificationin

thepresent,intheshortterm,toenjoygreaterrewardsinthefuture—inthelong

term.Withoutthewillpoweranddisciplinetoengagein“short-termpainforlong-

termgain,”littlesuccessispossible.

TheRetirementCrisis

TodayinAmerica,andinothercountries,wehavewhateconomistscalla“loomingretirementcrisis.”TenthousandmembersofthebabyboomergenerationarereachingretirementageintheUnitedStatesaloneeachday.AccordingtotheNewYorkTimes,theaveragesavingsofamarriedcouplereachingretirementisonly$104,000.

Thisamounthastolastforfifteentotwentyyearsinretirement.Atawithdrawalrateof4percent(recommended),theaverageretiredcouplecandrawdown$4,160peryear,$346permonth,fortherestoftheirlives,plusSocialSecurity.

And$104,000isthemediansizeofaccumulatedsavings.Fiftypercentofretireesareabovethatnumber,and50percentarebelow.Someretireeshavenomoneyatallsavedup.Howcouldthishappeninthemostaffluentcountryinallofhumanhistory?

Theanswerisclear—lackoftimeperspective.Millionsofpeoplegotintothehabitearlyofspendingeverythingtheyearnedandoftenmorethroughouttheirlives.Today,fully70percentofadultslivefrompaychecktopaycheck.Theyhavenothingleftover.Theycomplainthattheyhave“toomuchmonthattheendofthemoney.”

Theywereandarelulledintobelievingthattheirspendthrifthabitswouldnevercatchupwiththem.

TheMillionaireNextDoor

Manymillionairesandmultimillionairestodayareaveragemiddle-classearners,livinginaveragehomesinaverageneighborhoods.Manyofthemareteachers,truckdrivers,andsalespeople.Buttheysaved10–15percentoftheirincomethroughouttheirworkinglivesandarenowwealthyandcomfortable.

Withthemiracleofcompounding,aninvestmentof$100permonthfromagetwenty-onetoagesixty-fiveat7or8percent,theaverageofthegrowthofthestockmarketforeightyyears,wouldamounttomorethan$1millioninsavings.

Thedevelopmentoflong-timeperspective,ofprojectingintothefuturefiveortenyears,orevenlonger,changesthewayyouthinkandactinthepresent.

DoubleYourIncome

InCameronHerold’sbook,DoubleDouble(2011),heshowsyouhowtodoublethesizeofyourbusinessinthreeyears.Hismessageissimple:Headvisesyoutoprojectforwardthreeyearsintothefutureanddecidetoearntwiceasmuchasyouareearningtodaybythattime.Thisamountstoanincreaseof25percentperyearcompounded.

Thenworkbacktothepresent,anddeterminetheexactstepsyouwillhavetotaketoachievethisgoal.Ifyouincreaseyourincomeorgrowyourbusinessby2percentpermonth,26percentperyear,youwilldoubleitinthreeyears.

Ifyouareworkingandyouincreaseyourproductivity,performance,andoutputbyone-halfof1percentperweek,thiswilltranslateinto2percentpermonth,26percentperyear,andadoublingofyourincomeinthirty-sixmonths.

BackfromtheFuture

Thestartingpointofdevelopinglong-termtimeperspectiveisforyoutopractice“backfromthefuture”thinking.Imagineyoucouldwaveamagicwandandmakeyourlifeperfectsometimeinthefuture.Whatwouldyourperfectlifelooklike?Howwoulditbedifferentfromtoday?

Thencomebacktothepresentandask,“Whatwouldhavetohappen,startingtoday,formetocreatemyperfectlifesometimeinthefuture?”

Practiceidealization.Imaginethattherearenolimitsonwhatyoucanaccomplishsometimeinthefuture.Analyzeyourlifeinthefourmostimportantareas:(1)businessandcareer;(2)familyandrelationships;(3)healthandfitness;and(4)financialindependence.

Projectforwardfiveyearsandimaginethatyourbusiness,career,andincomeareidealineveryway.Howmuchwouldyoubeearning?Whatsortofworkwouldyoubedoing?Wherewouldyoubeinyourcareer?Whatkindsofpeoplewouldyoubeworkingwith?

YOURFIVE-YEARFANTASY

PeterDruckersaid,“Peopleoftenoverestimatewhattheycanaccomplishinoneyear.Buttheygreatlyunderestimatewhattheycouldaccomplishinfiveyears.”

Onceyouareclearaboutwhatyouridealcareerandincomewouldbefiveyearsinthefuture,lookbacktothepresent,anddecidethestepsyouwillhavetotaketogetfromwhereyouaretodaytowhereyouwanttobeinthefuture.

Thentakethefirststep.Thegoodnewsisthatyoucanalwaysseethefirststep.Youdon’thavetoseeeverysteponthestaircasetobeginclimbing.Youjusthavetotakethefirststep.Andwhenyoutakethefirststep,thesecondstepwillappear.Andwhenyoutakethesecondstep,thethirdstepwillappear.Youwillalwaysbeabletoseeonestepahead,andthat’sallyouneed.Butyoumusttakethefirststep.

Confuciussaid,“Ajourneyofathousandleaguesbeginswiththefirststep.”Thefirststepisalwaysthehardest.Itrequirestremendousdeterminationandwillpowerforyoutodosomethingmorethananddifferentfromwhatyouhaveeverdonebefore.Butonceyoutakethefirststep,thesecondstepiseasier.Andthenthethirdstep.Soon,youfindyourselfmovingsteadilyforward,accomplishingmoreinafewmonthsthanyoumighthaveaccomplishedinpastyears.

YOURFAMILYANDRELATIONSHIPS

Waveyourmagicwandagain,andimaginethatyourfamilyandrelationshipswereidealineveryway.Whatwouldtheylooklike?Whomwouldyoubewith?Whomwouldyounolongerbewith?Ifyouweremarried,whatkindofahomeandlifestylewouldyouhavewithyourfamily?Whatsortsofvacationswouldyoutake,andwhatkindofalifewouldyouwanttoprovideforyourfamily?

Thenlookbackfromthefuturetowhereyouaretodayandask,“Whatwouldhavetohappen,startingtoday,formetocreatemyideallifesometimeinthefuture?”

EXCELLENTPHYSICALHEALTH

Thinkaboutyourhealthandfitness.Ifyourhealthwasperfectsometimeinthefuture,howwoulditbedifferentfromtoday?Whatleveloffitnesswouldyouenjoy?Howmuchwouldyouweigh?Whatsortofdietwouldyoueat?Whatsortofexerciseregimenwouldyoubefollowing?Whatkindofrestandrelaxationwouldyoupractice,includingvacations?

Thencomebacktothepresentandask,“Whatwouldhavetohappenformetoenjoysuperbhealthandfitnesssometimeinthefuture?”

Thentakethefirststep.Dosomething.Doanything.Stepoutinfaith.Andyoucanalwaysseethefirststep.

FINANCIALFREEDOM

Thefourthareaofconcernisyourachievementoffinancialfreedom,financialindependence.Projectforwardintothefutureandask,“HowmuchmoneywouldIneedtohavetobecomfortablesometimeinthefuture?”

Inmyseminarswithbusinessowners,weteachtheconceptof“thenumber,”whichwasalsothenameofanexcellentbookonthesamesubject.Itsimplyasks,“Whatisyournumber?”Whatisthespecificamountthatyouwanttoearn,save,invest,andaccumulateoverthecourseofyourworkinglifetime?Especially,exactlyhowmuchwillyouneedtosupportyourlifestyleonamonth-to-monthandyear-to-yearbasis?

Thereisasimpleformulaforfinancialindependence.First,determineexactlyhowmuchitwouldcostforyoutosupportyourcurrentlifestyleforonemonthifyouhadnoincomeatall.Morethan70percentofadultsareunsureandunclearaboutexactlyhowmuchitcoststhemtoliveonamonth-to-monthbasis.

ANNUALEXPENSES

Onceyouhavedeterminedyourmonthlyrequirements,whichmaytakeabitofinvestigationintoyourcurrentexpenses,regularandunexpected,youmultiplythisnumberbytwelvetodeterminehowmuchyouwouldhavetohavesaveduporinvestedifyouhadnoincomeforanentireyear.

Ifyouneed$5,000permonthaftertaxestosupportyourcurrentlifestyle,multipliedbytwelve,youwouldneed$60,000peryeartobecomfortableifyouhadnoincomeatall.

Finally,multiplyyourannualamountbytwenty—theapproximatenumberofyearsthatyouand/oryourspousearegoingtoliveafteryouretire.Tocontinuewiththisexample,ifyouneed$60,000peryeartolivecomfortably,multipliedbytwenty,youwouldneed$1.2milliontoretireatyourcurrentstandardofliving.(Youcandeductanypensionsthatyoumighthavecomingfromyourmonthly/annualrequirement.)

TAKETHEFIRSTSTEP

Thentakethefirststep.Openaretirementaccount,afinancialfreedomaccount.Thisisanaccountintowhichyoudepositmoneyandnevertakeitout,foranyreason.Seekouttheservicesofafinancialadviser.Learntoliveon85–90percentofyourincomeandsaveorinvestthebalance.Setthisasoneofthemostimportantgoalsofyourlife,toachievefinancialindependenceandhityour“number”ataspecifictimeintheyearsahead.

Theveryactofdeterminingyournumber,makingaplantoachieveit,takingactiononyourplan,andcontinuouslysavingandinvestingwillincreasetheprobabilitythatyouachievethatnumbersometimeinthefuturebyasmuchastentimes.

MakeaDecision

Resolvetodaytodeveloplong-timeperspective.Becomeintenselyfutureoriented.Thinkaboutthefuturemostofthetime.

Considertheconsequencesofyourdecisionsandactions.Whatislikelytohappen?Andthenwhatcouldhappen?Andthenwhat?

Practiceself-discipline,self-mastery,andself-control.Bewillingtopaythepricetodayinordertoenjoytherewardsofabetterfuturetomorrow.

Andthentakethefirststep.Thedividinglinebetweensuccessandfailureisnotgoodintentions,hopes,wishes,anddreams.Itisdecidingwhatyouwantineachkeyareaofyourlifeandthentakingthefirststep.Andyoucanalwaysseethefirststep.

ACTIONEXERCISES

1. Resolvetodaytothinklongterm,toconsiderthelikelyconsequencesofadecisionbeforeyouact.2. Projectforwardthreetofiveyears,andimaginethatyourlifewasidealineveryway.Howwould

itbedifferentfromtoday?3. Decideupononeactionthatyouaregoingtotakeimmediatelytocreateyouridealfuture.And

thentakethefirststep.

2

SlowThinkingVersusFastThinking

Thesuccessfulpersonhasdevelopedthehabitofdoingthethingsfailuresdon’tliketodo.Theydon’tlikedoingthemeithernecessarily.Buttheirdislikingissubordinatedtothestrengthoftheirpurpose.

—ALBERTE.N.GRAY

YOURMINDISEXTRAORDINARY.Youhavethecapacitytothinkmorethoughtsthanallthemoleculesintheknownuniverse.Byproperlyfocusingthepowersofyourmindonanygoalordesireyouhave,youcanaccomplishextraordinarythingsandoftenfarfasterthanyourealize.

Yourmindracescontinually.Yourstreamofconsciousnessisaboutfifteenhundredwordsperminute.Yourmindjumpsfromonethoughttoanotherandthenbackagain.Ittakestremendousdisciplineandwillpowerforyoutocontrolandconstrainthisonrushingriverofthoughtandtochannelitinsuchawayastoenableyoutoaccomplishallthatispossibleforyou.

Asithappens,youcanthinkhundredsofthoughtsinarow,butyoucanonlythinkonethoughtatatime.Becauseofthis,youhavetheabilitytotakecontrolofthisstreamofconsciousnessandfocusyourthinking,likeasniper,ononethought,onetargetatatime.

TheReactive-ResponsiveMode

Whateveryoudorepeatedlybecomesahabit.Themajorityofpeopleoperateinareactive-responsivemode.Theyhavedevelopedthehabitofreactingandrespondingcontinuallytowhatisgoingonaroundthem,andwithinthem,withverylittledeliberate,reasonedthought.

Fromthefirstringofthealarmclock,theyarelargelyreactingandrespondingtostimulifromtheirenvironmentandtotheirhabitualormomentaryimpulsesandappetites.Thenormalthinkingprocessisalmostinstantaneous:stimulus,thenimmediateresponse,withnotimeinbetween.

Thesuperiorthinkingprocessisalsotriggeredbystimulus,butbetweenthestimulusandtheresponsethereisamomentormorewhereyouthinkbeforeyourespond.Justlikeyourmothertoldyou,“Counttotenbeforeyourespond,especiallywhenyouareupsetorangry.”

Theveryactofstoppingtothinkbeforeyousayordoanythingalmostalwaysimprovesthequalityofyourultimateresponse.Itisanindispensablerequirementforsuccess.Itisalsoaqualityofwealthypeople.

ThinkingIsHardWork

ThomasJ.WatsonSr.,thefounderofIBM,requiredthattherebesignsoneveryofficewallthatsaid,“THINK.”Whenevertheyhadaproblemtodealwithintheearlydays,someonewouldpointtothesigntoremindhisco-workersthatthemoretheytooktimetothinkcarefullyaboutthesubjectunderdiscussion,themorelikelytheyweretocomeupwithapropersolutionordecision.

ThomasEdisononcesaid,“Thinkingisthehardestworkofall,whichiswhymostpeopleavoiditatallcosts.”

Thereisasaying,“Therearethosewhothink.Therearethosewhothinktheythink.Andthenthereisthevastmajoritywhowouldratherdiethanthink.”

Goodthinkingishardwork.Itmustbelearnedandpracticedoverandoverifyouaregoingtotrulyplumbthedepthsofyourmentalpowers.

Fortunately,whateveryoudorepeatedlysoonbecomesahabit.Onceitbecomesahabit,itfunctionseasilyandautomatically.Goethesaid,“Everythingishardbeforeitiseasy.”Thisdefinitelyappliestonewhabitformation.

SlowThinking

Oneofthebesthabitsyoucandevelopistopracticethinkingslowlyinthoseareaswhereslowthinkingisrequired.

Aswediscussedinchapter1,theimportantfactorisconsequences.Almostallofthemistakeswemakeinlifecomefromnotcarefullyconsideringtheconsequencesofouractionsbeforehand.

DanielKahneman’sbestsellingbook,Thinking,FastandSlow,isamajorcontributiontoaccuratethinking.SimilartotheclassicStraightandCrooked

ThinkingbyR.H.ThoulessandC.R.Thouless,Kahneman’sbookexploresandexplainsmanyofthereasonswhywecometofalseconclusionswhichleadtoactionsthatfailtoachievetheresultswedesire.

Theauthorsshowhowweacceptinformationandmakedecisionsbasedonpartialinformation,selectivestatistics,orconfirmationbias—seekinginformationthatagreeswithwhatwehavealreadydecidedtobelieve.

Thecommonconclusionofthesestudiesintopoororsloppythinkingisthenecessityofslowingdownbeforewemakeadecisionthatcanhavesignificantpositiveornegativeconsequencesinourlivesandwork.

Oneofthesimplestwaystodothisistocontinuallyask,“Howdoweknowthisistrue?”beforeweacceptapieceofinformationasthebasisforadecision.

TwoThinkingStyles

Thetwothinkingstylescontrastedarefastthinkingversusslowthinking.Withfastthinking,weprocessinformationquickly,intuitively,automatically,instinctively,likemakingdecisionswhiledrivingacarinbusytraffic.Wereactandrespondwithlittlethoughtorconsideration.

Formostofouractivities,suchasconversations,meetings,navigatingdailylife,orgroceryshopping,fastthinkingisbothappropriateandnecessary.Theconsequencesarenotimportant,suchaswhetheryouorderahamburgerorafishpattyforlunch.Itdoesn’treallymatterinthegreatschemeofthings.

Formanyotherareasofourlives,slowthinkingismorenecessary,andevenessential,ifwearetomaketherightlong-termdecisionsthatyieldtheconsequenceswedesire.

HerewasKahneman’sinsightthatwascentraltomakinghisbookabestseller,anddeservedlyso.Hesaidthatthebiggestmistakethatmostpeoplemakeisthattheyusefastthinkinginmakinglong-term,vitaldecisions,whereslowthinkingismuchmoreappropriate.

ConsidertheConsequences

Forexample,decisionsaboutthecoursesyoutakeatcollege,whatcareerpathyouembarkupon,thepersonyoumarry,andhowyouearn,save,andinvestyourmoneyallrequireslowthinking.

Themoreimportantadecisioncanbetoyouinthelongterm,themoreimportantitisthatyouslowdown,callatime-out,andcarefullyconsiderboththefactsandyouroptions.

Instartingandbuildingabusiness,slowthinkingisabsolutelyessentialincertainareas.Whichproductorserviceyouspecializein,whichcustomersegmentyouaimat,whichmethodsofproduction,sales,marketing,anddistributionyouselect,andyourcostandpricingdecisionsareallvitaltothesuccessorfailureoftheenterprise.

AnalyzeYourWayofThinking

Fromnowon,askyourselfonaregularbasis,“Doesthissituationrequirefastorslowthinking?”

Buytimeforyourselfwheneverpossible.Putaslongagapaspossiblebetweenthestimulusandtheresponse,betweenthethoughtandthedecision.Practicethe“Seventy-Two-HourRule.”Giveyourselforbuyyourselfseventy-twohours,orthreedays,toconsideramajordecisionbeforeyoumakeit.

LordActonwrote,“Ifitisnotnecessarytodecide,itisnecessarynottodecide.”

Thelongeryoutaketomakeanimportantdecision,thebetterthatdecisionwillbeinalmosteverycase.Continuallyusethewords“Letmethinkaboutitandgetbacktoyou.”

Ifsomeonetriestopressureyouintomakingadecisiononanimportantissue,youcansay,“Ifyouinsistonananswerimmediately,theanswerisNO.Butifyouletmethinkaboutitforawhile,theanswermightbedifferent.”

WriteDowntheDetails

Thinkonpaper.Oneofthemostpowerfulthinkingtoolsofallisasheetofpaperuponwhichyouwritedowneverydetailoftheproblemordecision.Somethingamazinghappensbetweentheheadandthehandwhenyouwritethingsdown.Whenyouwriteoutallthedetails,youareforcedtothinkslowlyandmeticulously,especiallywhenyouwritebyhandratherthantyping.Often,asyouwritefactafterfact,itbecomesclearerandclearertoyouwhatyoushoulddo.ThisiswhyFrancisBaconwrote,“Writing[maketh]anexactman.”

Wheneverthepotentialconsequencesofadecisionaresignificant,buyyourselfasmuchtimeasyoupossiblycan.Yourfinaldecisionwillalwaysbebetterthanifyoudecidedquickly.

PeopleDecisions

Fully95percentofbusinesssuccess,bysomeestimates,willbedeterminedbythequalityofthepeoplewhomyouattractandassign,appoint,anddelegatetheworkto.Thepeopleyouchoosetoworkwith,andthepeoplewhochooseyou,canmakeorbreakabusiness.ThisiswhyPeterDruckerwrote,“Fastpeopledecisionsareinvariablywrongpeopledecisions.”

Thepeopleyouchoosetoworkwithorfor,tosocializewithormarry,toinvestthroughorgointobusinesswith,willdetermineabout85percentofyoursuccessandhappinessinyourpersonallife.

TheSecretofHiring

Thetopsalesmanagerforalargecompany,whowasfamousforhavinghiredmanyofthefirm’sbestsalespeople,wasonceaskedtodisclosehissecrettohiringsuccess.Hesaid,“Simple,Ipracticethe‘Thirty-DayRule.’NomatterhowmuchIlikethecandidate,IdisciplinemyselftowaitthirtydaysbeforeImakeafinaldecision.AsImeetandtalkwithacandidate,apersonwhomaylookexcellentinthefirstorsecondmeetingoftenstartstorevealweaknessesandcharacterflawsthatmakehimorhercompletelyinappropriateoverthelongterm.”

Mostsuccessfulcompaniesandmanagerspracticedifferentversionsofthisrule.Theyrealizethattheconsequencesofabadhirecanbeveryexpensive.Thisprincipleappliestobusinesspartnershipsanddealsaswell.

ThinkStrategically

Ofthemanymanagementtechniquesthathavecomeinandoutoffashionovertheyears,strategicplanningisalwaysrankedasnumberoneinenduringimportance.Instrategicplanning,youareforcedtothinkslowly,tocarefullyconsiderthelikelyconsequencesofanactionoradecision.Youaredesigningthelong-termfutureofyourbusiness.

Inpersonalstrategicplanning,itisthesame.Youdesignyourownfuture.Youthinkfarintothefuturetodeterminewhereyouwanttobeintheyearsahead.

AsMichaelKami,thestrategyexpert,wrote,“Thosewhodonotplanforthefuturecannothaveone.”

Personalstrategicplanningforcesyoutothinkslowly,withgreaterprecisionandaccuracy.Itforcesyoutothinkaboutwhatyoureallywanttobe,have,do,andaccomplishinthemonthsandyearsahead.

Itisoftenagoodideaforyoutoblockoutchunksoftime,evenadayortwo,tothinkaboutyourfuture,especiallyintimesofchange,turbulence,anddisruption.Goforalongwalkandletyourmindrelax.Discussyourfuturegoalswithyourspouse.Taketwoorthreedaysoffwhereyoudisconnectfromallelectronicdevices,includingyourcomputer,smartphone,telephones,textmessages,andanyotherelectronicinterruptionsthatcandisrupttheflowofyourthinking.

PracticeSolitude

Oneofthemostpowerfulofallwaystopracticeslowthinkingisforyoutopracticesolitudeonaregularbasis.Manypeoplehaveneverpracticedsolitudeevenonceintheirentirelives.Theyhaveaninsatiableneedtobebusyandactive,fillingeverypossibleminutewithstimuliofsomekind.Butthisisnotforyou.

Thepracticeofsolitudeisquitesimple.Itrequiresthatyoutakeaminimumofthirtytosixtyminutesbyyourself,insilence,withnomusicordistractions,andsimplysittherequietlywithnonoiseoractivity.Youcansitquietlyinnature,inapark,wherethereisnonoise.

Perhapsthebestmentalstateforsolitudeisto“thinkaboutwater.”Sittingandlookingatabodyofwater,evenaswimmingpool,seemstorelaxyourmindandunlockyoursubconsciousandsuperconsciouscapabilities.

SOLITUDEREQUIRESDISCIPLINE

Whenyoufirstpracticesolitude,youwillfinditextremelydifficult.Youwillfidgetandthinkofthingsthatyoucouldgetupanddo.Youwillalmosthavetoholdyourselfdownforthefirsttwentytotwenty-fiveminutes.

Butatthatpoint,somethingwonderfulwillhappen.Allofyourtensionandstresswillbegintodrainaway,andyouwillfeelcompletelyrelaxed.Youwillstarttoenjoythesensationofsimplysittinginthesilence.Andatthispoint,yourmindwillbegintoflowwiththoughts,ideas,insights,perspectives,solutionstoproblems,andotherinspirations,anyoneofwhichcanchangeyourlife.

Justletyourmindflow,likeariver.Youdonotneedtowriteanythingdown.Ifitisagoodidea,itwillremainwithyouafteryourperiodofsolitude.Itissaidthat“menandwomenbegintobecomegreatwhentheybegintotaketimeapartwiththemselvesinthesilence.”

Ifyouhaveneverpracticedthirtytosixtyminutesofsolitude,makeanappointmentwithyourselfforyourfirstsession.Often,Iwouldstopmycarinaparkonthewayhomeinthelateafternoonandsitquietlyforanhour.Youmaystayattheofficeaftereveryonehasleft.Youmaysitinyourbackyardoryourupstairsbedroomwhereitiscompletelysilent.

ITWORKSEVERYTIME

Hereismypromisetoyou.Wheneveryouhaveaproblem,adifficulty,anobstacle,afrustration,orachallengeinyourlife,gointothesilenceandsitquietly.Theveryfirsttimeyoudothis,almostwithoutexception,theanswertoyourbiggestproblemwillcometoyou,almostlikeabutterflyalightingonyourshoulder.

Manyofmystudentsreporttomethatproblemsthathadconcernedthemforweeksormonthswerealmostinstantlyresolvedbytheirfirstpracticeofasessioninsolitude.

Whenyouranswercomes,itwillbecompleteineveryrespect.Itwillanswereverydetailoftheproblemordifficulty.Itwillbesimple,clear,andcompletelywithinyourcapabilitiestoact.Itwillsolveeverydetailoftheproblem.Whenyouarisefromyourperiodofsolitudeandputtheideaintoaction,everythingwillimmediatelyresolveitself.Youwillbeatpeace.

UnleashYourInnerPowers

Theregularpracticeofsolituderequiresslowthinking.Itrequiresthatyoustopallofthebusinessandactivityaroundyouandjustgointothesilencewithyourselfforafewminutes.Thebestnewsisthatthemoreyoupracticesolitude,thefaster,better,andmorecomprehensivewillbetheanswersandideasthatyougetfromeachperiod.

Incorporatestrategicplanning,wheretheconsequencescanbesignificant,takingthetimetobackoff,slowdown,andthinkthroughthecriticalissuescanbetheactionthatdeterminesthesuccessorfailureofthebusiness.

Thereisaruleintimemanagementthatsays,“Everyminutespentinplanningsavestenminutesinexecution.”

Wheneveryouseeasuccessfulenterprise,youseeasuccessfulstrategyinaction.Youseetheresultofanextendedprocessofslowandcarefulthinking.

UsetheGOSPAThinkingModel

Tohelpyourselfandotherstoslowdownandthinkwithgreaterprecision,usetheGOSPAmodelonaregularbasis.TheacronymGOSPAstandsfor“Goals,Objectives,Strategies,Priorities,andActions.”

Goals:Thespecific,measurable,time-boundedresultsyouwanttoachieveoverthelongerterminyourbusiness—yourtargetsforsales,profitability,growth,shareprice,andqualityrankings.

Objectives:Theinterimgoalsthatyouwillhavetoachievetoaccomplishyourmajorgoals.Imaginethatyourgoalsexistatthetopoftheladder—yourlong-termaims—andyourobjectivesaretherungsoftheladderthatyoumustclimbtoachievethem.

Strategies:Thevariouswaysthatyoucouldaccomplisheachobjective.Forexample,inbusiness,oneofyourobjectiveswillbetoachieveacertainlevelofsales.Youcanuseavarietyofdifferentstrategiestoachieveyoursalesobjectives.

Priorities:Thoseactivitiesthataremoreimportantthanothersinachievingyourgoalsandobjectives.Applythe80/20ruletoeverything.Whatarethetop20percentofactionsthatyoucantakethatcanaccountfor80percentofyourresults?

Actions:Whatspecific,measurable,time-boundedactivitiesmustyoutaketoimplementyourstrategies,achieveyourobjectives,andaccomplishyourgoals?

Thismethodofthinking,andcarefullyconsideringeachactionyoumusttake,dramaticallyimprovesyourdecision-makingabilities.Itforcesyoutousebothlong-termthinkingandslowthinkingtogether.

TheLawofProbabilities

Manypeopleattributetheirsuccess,orfailure,toluckofsomekind,goodorbad.Inreality,whenlookingbackatwhatactuallyhappened,successturnsoutnottobeamatterofluckatall.Instead,itisamatterofprobabilities.

TheLawofProbabilitiessaysthatthereisaprobabilitythateverythingcanhappen,andbyusingcertainmathematicalmodels,youcancalculatetheseprobabilitieswithconsiderableaccuracy.Initssimplestapplication,thelawsaysthatifyoudomoreofthethingsthatsuccessfulpeopleandorganizationsdo,youincreasetheprobabilitiesthatyouwilldotherightthingattherighttimeandbesuccessfulaswell.

Bypracticingslowthinkingwheneveritisrequired,youwillfindyourselfdoingmoreoftherightthingsandfewerofthewrongthingsonyourjourneytosuccess.

Successisnotanaccident.Failureisnotanaccident,either.Themorecarefullyyouthinkandplanbeforetakingaction,thefasteryoutakecontroloveryoursuccessinthefuture.

ACTIONEXERCISES

1. Resolvetodaytoputaspacewhereyouthinkslowlybetweenthestimulus,theproblemoridea,andyourresponse.

2. SelectoneimportantareaofyourbusinessorpersonallifeandpracticetheGOSPAmodeltohelpyouthinkclearlyandatyourverybestinplanningyourfuture.

3. Plantodaytotakethirtytosixtyminutesforsolitude,whereyousitincompletesilenceandlistentoyourintuition.Dothisregularly.

3

InformedThinkingVersusUninformedThinking

Bewareofendeavouringtobeagreatmaninahurry.Onesuchattemptintenthousandmaysucceed:thesearefearfulodds.

—BENJAMINDISRAELI

THETWOMOSTPOPULARWORDSamongexperiencedbusinesspeopleare“duediligence.”Thisrequirestakingthetime,howeverlong,togetthecriticalinformationyouneedtomaketherightdecision.

Thebiggestmistakeswemakearethosewherewecommittime,money,andresourceswithouthavingdonesufficienthomework.

Thebestdecisionswemakearealmostinvariablybasedonhavingacquiredcompleteknowledgeoftheissuebeforeweact.We“lookbeforeweleap.”

ReasonsforBusinessSuccess

Inbusiness,accordingtoForbesmagazine,thenumberonereasonforfailureisthatthereisnodemandfortheproductorservice.Whateveritis,thecustomersdon’twantitordon’twantitatthepricethatthecompanyhastochargetostayinbusiness.

In2013,morethan$8billionwasspentonmarketresearchintheUnitedStatesalone.Thismoneywasaimedatfindingoutwhatcustomersreallywantedbeforetheproductwasproducedandbroughttomarket.

Butevenwithexhaustiveresearch,80percentofnewproductseventuallyfailandhavetobetakenoffthemarket.

AccordingtoMcKinsey&Company,aleadingbusinessconsultancy,themajorreasonforbusinesssuccessishighsales.Themajorreasonforbusinessfailureislowsales.Allelseiscommentary.

Theprimaryreasonforthepoordecisionsthatleadtomarketfailureisthatthekeypeoplefailedtoasktherightquestionsortogetthenecessaryinformationbeforetheproductwasproducedandsold.

GettheFacts

HaroldGeneen,whoformedaconglomerateofmorethan150companiesatITT,said,“Themostimportantelementsinbusinessarefacts.Gettherealfacts,nottheobviousfactsorassumedfactsorhoped-forfacts.Gettherealfacts.Factsdon’tlie.”

Oneofthemostimportantwordsinbusinesstodayis“validation.”Neverassume.Whenyougetagoodidea,immediatelytakeactiontovalidateit,togatherproofthatitisreallyasgoodasyouthinkitis.

Thinkonpaper.Makealistofalltheinformationyouhaveabouttheproductorserviceandalltheinformationyouwillneedtomaketherightdecision.

Talktootherpeople.Seekadviceandinputfromotherswhohavebeeninthesamesituation.

Hireanexpert.Onepersonwhospecializesinaparticularareacansaveyouafortuneinlosttimeandmoney.

DoaGooglesearch.Putinthekeywordsassociatedwithyourquestion,problem,oridea,andseewhatpopsup.Veryoften,thisgroundhasalreadybeenthoroughlyplowedbysomeoneelse.

Solicitopinions.Askeveryoneinyourbusinesswhomighthavesomeknowledgeaboutthissubjecttosharehisorhercandidopinionsandideas.Onethoughtorobservationcanchangeyourperspectivecompletely.

UsetheScientificMethod

Createahypothesis—ayet-to-be-proventheory.Thenseekwaystoinvalidatethishypothesis,toprovethatyourideaiswrong.Thisiswhatscientistsdo.

Thisisexactlytheoppositeofwhatmostpeopledo.Theycomeupwithanidea,andthentheyseekcorroborationandproofthattheirideaisagoodone.Theypractice“confirmationbias.”Theyonlylookforconfirmationofthevalidityoftheidea,andtheysimultaneouslyrejectallinputorinformationthatisinconsistentwithwhattheyhavealreadydecidedtobelieve.

Createanegativeorreversehypothesis.Thisistheoppositeofyourinitialtheory.Forexample,youareIsaacNewton,andtheideaofgravityhasjust

occurredtoyou.Yourinitialhypothesiswouldbethat“thingsfalldown.”Youthenattempttoprovetheopposite—“thingsfallup.”

Ifyoucannotprovethereverseornegativehypothesisofyouridea,youcanthenconcludethatyourhypothesisiscorrect.

Forexample,youcomeupwithanideaforaproductorservice.Youthenattempttoprovethatthereisnodemandforthisproductorserviceatthisparticularprice.Youapproachaprospectivecustomeranddescribetheproductorserviceandthensay,“Ofcourse,thisisnotsomethingthatyouwant,need,orarewillingtopayfor,isit?”

Ifyourcustomeragreesthathedoesnotwantwhatyouareproposing,youhaveavaluablepieceofinformationtoguideyourdecisionmaking.If,ontheotherhand,thecustomercountersyournegativehypothesisbysaying,“No,no,no.ThisisactuallysomethingthatIwouldbeveryinterestedinbuyingandusingifyouweretobringittomarket,”thenyouhavevalidatedyourinitialtheoryaboutthepotentialdemandforthisnewproductorservice.

BeWillingtoFail

Bepreparedtotryandfail,toproposeandberejected,overandover.Failure,trial,anderrorareabsolutelyessentialtoyourultimatesuccess.

Beyourownmanagementconsultantwithanyofyourideasandconclusions.Askyourselfthebrutalquestionsthataconsultantwouldaskyoutohelpguideyouindecisionmaking.

“Isthereamarketdemandforthisnewproductorservice?”“Howbigisthedemand,andatwhatprice?”“Whatchangeswouldyouhavetomakeinyourinitialideatomakethisa

productorserviceattractiveenoughthatpeoplewouldwanttobuyitinsufficientquantities?”

“Isthedemandforthisnewproductidealargeenoughtojustifydevelopingthisproductratherthansomethingelse?”

“Isthemarketforthisproductideaconcentratedenoughsothatyoucanreachpotentialcustomerswithcurrentmarketingandsaleschannels?”

“Willcustomerspayenoughforthisproductorservicetoenableyoutoearnagreaterprofitthanyouwouldwithsomeotherproductorservice?”

Betoughonyourselfinbecominginformed.Don’tletyourselfoffthehookoraskyourselfsoftballquestions.AsZigZiglarsaid,“Ifyouarehardonyourself,lifewillbeveryeasyonyou.Butifyouinsistonbeingeasyonyourself,lifewillbeveryhardonyou.”

BettertoBeRight

AsthepsychologistJerryJampolskyoncewrote,“Doyouwanttoberightordoyouwanttobehappy?”

Itisamazinghowmanypeoplecomeupwithanewproductorserviceideaandthenfallinlovewiththeidealongbeforetheyvalidatewhetherornotthisissomethingthatasufficientnumberofcustomersarewillingtobuyandpayfor.

Keepgatheringinformationuntilthepropercourseofactionbecomesclear,asiteventuallywill.Checkanddouble-checkyourfacts.Assumenothingonfaith.Ask,“Howdoweknowthatthisistrue?”

Finally,searchforthehiddenflaw,theoneweakareainthedecisionthatcouldprovefataltotheproductorbusinessifitoccurred.J.PaulGetty,oncetherichestmanintheworld,wasfamousforhisapproachtomakingbusinessdecisions.Hesaid,“Wefirstdeterminethatitisagoodbusinessopportunity.Thenweask,‘Whatistheworstpossiblethingthatcouldhappentousinthisbusinessopportunity?’Wethengotoworktomakesurethattheworstpossibleoutcomedoesnotoccur.”

Ifyoucangatheralltheinformationyouneed,andyoucanneutralizeorremovethehiddenflaw,youwillmakevastlybetterdecisionsthanothers.

NothingReplacesExperience

Thisiswhereexperiencedthinkingversusinexperiencedthinkingcanbesovaluable.Nothingreplacesexperienceinafast-moving,rapidlychangingbusinessorindustry.Certaininvaluablelessonscanonlybelearnedbytrialanderror,byhavingcountlessexperiencesandmakinginnumerablemistakesinaparticulararea.

Experiencedpeopledevelopwhatiscalledpatternrecognition.Whentheyareexposedtoaneworexistingbusinesssituation,theycanidentifypatternsthattheyhaveseenbeforethatledtoeithersuccessorfailure.Theycanimmediatelyanticipatethingsthatmighthappenthatwouldrenderthebusinessinvestmentordecisioninvalid.Theycanquicklyidentifyholesinthereasoningsupportingthenewidea.Becauseofthemanypatternsthattheyhaveseeninthepast,theycanquicklyfocusonthecriticalelementsthatcanleadtosuccessorfailure.

BECOMEAMASTEROFTHEGAME

Inastudyofchessplayers,fromlocalchesschampionsuptointernationalgrandmasters,theresearchersassumedthatthedifferenceintheirlevelsofsuccesswastheplayers’abilitytopredictfarmorepotentialmovesthantheiropponentscouldmakeinanygivengame.Thentheyfoundthatchessplayers,atalllevels,seldomthinkmorethanthreeorfourmovesahead.Thinkinganyfurtheraheadthanthatisnothelpfultowinning.

Instead,theyfoundthatateachlevelofexpertise,theplayersrecognizedmorepatternsontheboardthanaplayeratapreviouslevel,whichcouldonlycomefromexperience.

Thegrandmastercouldglanceataboardandalmostinstantlyseeasmanyasfiftythousandpossiblecombinationsofthepieces.Hecouldaccuratelyguesswhatmovetheopponentwaslikelytomakegiventheexistingpatternofthepiecesontheboard.Asaresult,achesschampioncouldplayandwinagainstten,twenty,andeventhirtyopponentssimultaneously.Hecouldwalkfromboardtoboard,glancequickly,recognizethepattern,makeadecision,andmovehispiece.Thengoontothenextboard.

EXPERIENCECOUNTS

Itisthesameinbusinessandtheprofessions.Becauseofextensiveexperience,whichcannotbegainedquicklyoreasily,theexpertcanrapidlyassessacomplexsituationandimmediatelysuggestasolutionthatwassimplynotobvioustoapersonwithlessexperience.

TheCEOsofFortune500companiesearnmorethan$10millionperyearonaverage.Thisisalmostsolelybecauseoftheirabilitytoreactandrespondquicklytocomplexsituations,examplesofwhichtheyhaveseenandworkedwithinthepast,andthenmakequickandaccuratedecisionsthatleadtofinancialresults,sometimesinvolvingmillionsorbillionsofdollars.

RuleNumberOne

Perhapsthemostcommonadvicegivenbywealthypeopleis“Don’tlosemoney.”Inbusinessandinlife,yourgoal,too,mustbetonotlosemoney.Inwarfare,itisoftenthegeneralwhomakesthefewestmistakeswhowinsthebattle.Inlife,itisoftentheindividualwhomakesthefewestfinancialmistakeswholeadshisorhercompanyordivisiontohighlevelsofprofitability.Themoreinformationyougatherbeforeyoumakeadecision,themorelikelyitisthatyouwillmaketherightdecisionthatleadstothesuccessyoudesire.

Youachievethisgoalbytakingthetimetobecomefullyinformedbeforeyoumakeanirrevocabledecisioninthefirstplace.

THESTRATEGYOFTHERICH

BernardBaruch,oneoftherichestself-mademeninAmerica,inhisbookMyOwnStory,wrotethatthebiggestfinancialmistakesheevermadewerebecausehehadfailedtodosufficientduediligencebeforeinvestinghismoney.

WarrenBuffett,todaytheworld’ssecond-richestself-mademultibillionaire,spendsasmuchas80percentofeachdayreadingandinforminghimselfondetailsthatcaninfluencetheinvestmentdecisionshemakes.Heneverstopslearningandgatheringinformation.

CarlosSlim,whowastheworld’srichestmanafewyearsago,hashishomeinMexicoCityfullofnewspapersfromalloverMexicoandaroundtheworld.Hereadscontinuallyineverysourceavailabletohimtogivehimtheinformationheneedstomaketherightbusinessdecisions.

NEVERSTOPGATHERINGINFORMATION

Yourgoalshouldbetobecomebetterinformedthananyoneelseinthoseareasofbusinessandlifethataremostimportanttoyou.Youdothisbycontinuallygatheringinformationandcomparingdifferentideas.Youremainskepticalandproceedslowlytowardyourdecisions.

Themoreinformationyougatherandthemoreexperienceyouaccumulate,thebetterthedecisionsyouwillmakeandthebettertheresultsyouwillachieve.

ACTIONEXERCISES

1. Selectoneareainyourbusinessorpersonallifewhereyouneedtomakeadecisioninvolvingtime,money,andlong-termconsequences.Resolvetofindouteverydetailofthedecisionbeforeyoutakeaction.Acceptnothingonfaith.

2. Askothers.Seekoutoneormorepeoplewhomighthavehadyoursamesituationorproblem,andrequesttheiradvice.

3. Seekthefatalflawinoneareawhereyouneedtomakeadecisiontogoforwardornot.Alwaysassumethatoneexists.

4

Goal-OrientedThinkingVersusReaction-OrientedThinking

Mentaltoughnessismanythingsandratherdifficulttoexplain.Itsqualitiesaresacrificeandself-denial.Also,mostimportantly,itiscombinedwithaperfectlydisciplinedwillthatrefusestogivein.It’sastateofmind—youcouldcallit“characterinaction.”

—VINCELOMBARDI

SEVERALSELF-MADEMILLIONAIRES,allofwhomstartedwithnothingandworkedtheirwayup,werehavingdinneratthehomeofoneoftheirgroup.Theconversationwentbackandforthaboutthevariousreasonsforsuccessandwhyitwasthatthepeoplearoundthistablehadachievedsomuchwhentheaveragepersonachievessolittle.Finally,themostsuccessfulofthegroupspokeupandasked,“Whatissuccess?”

Whentheyturnedtohimforhisanswer,hesaid,“Successisgoals,andallelseiscommentary.”

TurningPoints

Throughoutyourlife,youwillhaveaseriesofturningpoints.Thesearemoments,insights,orexperiencesthatcantakeafewsecondsorafewmonths.Butafteroneoftheseturningpoints,yourlifeisneverthesameagain.

Sometimesyourecognizeoneoftheseturningpointswhenittakesplace.Inmostcases,youonlyrecognizethatitwasaturningpointinretrospect.Asyoulookbackonyourlife,youoftenremembersmallthingsthathappenedtowhichyoupaidlittleattention,buttheconsequencesoftheseeventschangedyouinsomewayandhadaninfluenceonthepersonyouaretoday.

Oneofthemajorturningpointsinmylife,andinthelivesofmostsuccessfulpeople,wasmydiscoveryofgoals.Iwastwenty-fouryearsold,broke,unskilled,andworkingasadoor-to-doorsalesman,sellingverylittle,earningverylittle,andsleepingonthefloorofafriend’sone-roomapartment.ThenIdiscoveredgoals.

TheDiscoveryofGoals

Ifoundausedbookinthebottomdrawerofanolddresserinthatone-roomapartment.AsIglancedthroughthebook,Icameacrosstheline“Ifyouwanttobesuccessful,youhavetohavegoals.”

Afewpageslater,itsaidtotakeasheetofpaperandwritedownthegoalsthatyouwouldliketoachievesometimeinthefuture.Ihadnothingtolose.IfoundapieceofpaperandwrotedowntengoalsthatIwantedtoaccomplish.Ipromptlylostthelist.Butthirtydayslater,mylifehadchangedcompletely.Ihadaccomplishedalmostallofthegoalsonthatlistinwaysthatwerecompletelyunexpected.

Idiscoveredasalestechniquethattripledmysales.Asaresult,myincomehadjumped.Imovedtomyownplace.Iwaspromotedtosalesmanager,givenateamofpeopletotrainwithmynewtechnique,andgrantedanoverrideonalltheirsales.AnditallhappenedwithinthirtydaysofmywritingdownalistofthingsIwantedtoachieveonthatpieceofpaper.

TheKeytoRiches

Sincethen,Ihaveread,researched,studied,taught,andcreatedprogramsongoalsettingandgoalattainmentthathavebeenusedbymillionsofpeopleallovertheworld.EverywhereIgo,peoplecomeuptomeandsayalmosttheexactsamething:“Youchangedmylife;youmademerich.”

WhenIaskthemwhatitwasinmyteachingsspecificallythathadsuchaprofoundimpactontheirlives,theyalwaystellmethatitwaslearningabouthowtosetandachievegoals.Itwastheturningpointintheirlives,asithadbeeninmine.

Itisnotuncommontodayforpeopletocomplainandevendemonstrateinthestreetsabout“the1percentversusthe99percent”inoursocietyintermsofincome.Butthey’vegotitwrong.Inreality,itshouldbe“the3percentversusthe97percent.”

Onlyabout3percentofpeoplehaveclear,specific,writtengoalsandplansthattheyworkoneachday.Theother97percenthavehopes,dreams,wishes,andfantasies,butnotgoals.Andthegreattragedyisthattheydon’tknowthedifference.

EarnandAcquireTenTimesasMuch

Inmyexperienceoverseveraldecades,andasaresultofreadingeverystudyintothosepeoplewithandwithoutgoals,Ihavefoundthatthetop3percentearnandacquire,overtime,onaverage,tentimesasmuchasthebottom97percentputtogether.

Whyisthis?Therearemanyreasons.Inthepreviouschapter,wesaidthatamantraofwealthypeopleis“Don’tlosemoney.”

Intermsofsuccess,wecouldsaythatthecorollaryis“Don’tlosetime.”Thefactisthatwhenyouhaveclear,specificgoalsandclearplanstoachieve

thosegoalsandyouworkonthemeveryday,yousaveanenormousamountoftime.Youaccomplishmoreinafewmonthsoryearsthanmanypeopleaccomplishinalifetime.Bysettinggoals,youprogramyourmentalGPS,whichthenfunctionslikeaguidedmissiletomoveyoudirectlytowardthetargetyouhaveaimedat,takingfeedbackfromyourtargetandmaking“coursecorrections”untilyouachieveyourgoal.

AsThomasCarlylewrote,“Thepersonwithoutgoalsmakesnoprogressoneventhesmoothestroad.Thepersonwithcleargoalsmakesrapidprogressoneventheroughestroad.”

Youhaveheardthesaying“Ifyoudon’tknowwhereyou’regoing,anyroadwilltakeyouthere.”

DeveloptheBigThree

Perhapstheverybestwayforyoutodevelopthe“bigthree”ofsuperiorthinking—clarity,focus,andconcentration—isforyoutodevelopcleargoalsforeverypartofyourlife.

Fully95percentofsuccessisdevelopingclarityinthefirstplace.Youmustbecomecompletelyclearaboutwhoyouare—yourstrengths,yourweaknesses,yourspecialtalentsandabilities—andwhatyouwanttodowithyourlife.Thenyoumustfocussingle-mindedlyononethingatatime,withoutdiversionordistraction.

AccordingtobothBillGatesandWarrenBuffett,theabilitytofocusononethingatatimeismoreresponsibleforsuccessinourfast-moving,turbulenttimesthananyothermentalability.

Finally,onceyouhavedecidedwhoyouareandwhatyouwantandhavedecideduponyourpointoffocus,youmustdevelopthedisciplinetoconcentratesingle-mindedlyononethingatatimeandstaywithituntilitis100percentcomplete.

Goalsenableyoutodevelopthequalitiesofclarity,focus,andconcentrationmuchfasterthananythingelseyoucoulddoordecideforyourlife.Goalsarethebestantidoteto“fuzzythinking,”whichisprobablymoreresponsibleforfrustrationandfailurethananyotherfactor.

MinimizeDistractions

Becauseofrapidchangeandconstantelectronicinterruptions—e-mail,texts,telephonecalls,andsocialmedia—moreandmorepeoplearedevelopingaformofattentiondeficitdisorderthatmakesitalmostimpossibleforthemtothinkclearlyortostay“ontask.”Theychecktheire-mailanaverageofforty-fivetimesperday,areslavestoincomingmail,phonecalls,andmessages,andarecontinuallychasingthe“shinyobjects”ofimmediatestimulus.

Thosewhodonothavegoalsaredoomedforevertoworkforthosewhodo.Inlife,youcaneitherworktoachieveyourowngoalsorworktoachievethegoalsofsomeoneelse.Ofcourse,thebestofalliswhenyouhelpyourcompanytoachieveitsgoalsbyachievingyourowngoals.

TheImpactofChange

Perhapsthemostimportantfactoraffectingyourlifetodayisthespeedofchange.Inallofhumanhistory,wehaveneverexperiencedtherateofchangethatweareenduringtoday—exceptfornextmonthandnextyearandfortherestofourlives.

Threemainfactorsareacceleratingtherateofchangeandcausingustofeeloutofcontrol.Ourverybestplansareofteninvalidated,sometimesovernight,byachangeinoneofthesethreecriticalareas.

INFORMATIONEXPLOSION

Thefirstfactordrivingchangeistheinformationandknowledgeexplosion.Informationandnewideasareexpanding,growing,increasingfasterandfaster.Onenewpieceofknowledge,onenewideaorinsight,canupsetoroverturnanentireindustry,causingfailureandbankruptcy.

Moresmartpeoplearedevelopingmoregoodanddisruptiveideastoday,inmoredifferentwaysandonmoredifferentsubjects,thanatanyothertimeinhistory.

THEEXPANSIONOFTECHNOLOGY

Thesecondfactordrivingchangeistechnology—growing,expanding,andincreasingatincrediblespeeds.Advancesintechnologycanquicklytransformentireindustries.ThinkofcompanieslikeNokiaandBlackBerrythatdominatedtheirindustriesuntilthefirstiPhonewasreleasedin2007.Withinfiveyears,bothofthesecompanieswerevirtuallygone.BlackBerrywentfromcontrolling49percentofthebusinesscellphonemarketto0.4percentinthattime,andNokiastoppedsellingcellularphonesandsoldouttoMicrosoft.Onenewtechnologicalbreakthroughontheothersideoftheworldcanputyououtofbusinessaswellifyoudonotrespondtoitquicklyandappropriately.

AGGRESSIVECOMPETITION

Thethirdfactor,perhapsmoredisruptivethananythingelse,iscompetition.Yourcompetitorsarefiercer,moreaggressive,andmoredeterminedthaneverbefore—exceptfornextweekandnextyear.Thecompetitionisfocusedonusingeachnewpotentialpieceofinformationandbreakthroughintechnologytochangeandshapecustomertastes,developnewproductsandservices,andrenderobsoletewhateveryouarecurrentlyoffering.

Yourcompetitioniscontinuallyscouringtheworldofnewinformationandtechnology,seekingopportunitiestoserveyourcustomerswithwhattheywantbetter,faster,andcheaperthanyouaretoday.

McDonald’s,theworld’sleaderinfastfoods,hasbeencaughtflat-footedbycompanieslikeChipotleMexicanGrill.TheGapandAbercrombie&Fitchhavebeenblindsidedbyaggressivecompetitorsofferingmoreappropriateandbetter-qualityproductsatcomparablepricesthataremoreinkeepingwithwhatcustomerswanttoday.

TheequationisSOC=IExTExC(thespeedofchangeisequaltoinformationexplosiontimestechnologyexpansiontimescompetition).Andthe

onlythingweknowisthattherateofchangeisgoingtobefasterandfasterinthemonthsandyearsahead.CharlesDarwinwrote,“Survivalgoesnottothestrongestorsmartestofthespecies,buttotheonemostadaptabletochange.”

GoalsAreEssential

Thisiswhygoalsaresoimportant.Goalsenableyoutocontrolthedirectionofchange,toassurethatyourlifeandworkareself-determinedratherthanbeingdictatedbyoutsideevents.

Oneofthegreatsecretsofsuccessisforyounottoworryaboutthingsthatyoucannotdoanythingabout—factorsthatyoucannotchange.Youcannotchangeorslowdowntherateofchange.Butyoucanadjustandadapttochangemuchbetteraslongasyouareclearaboutyourultimategoals.

Today,youcanbeeitheramasteroravictimofchange.Youcanbeacreatorofcircumstancesoryoucanbeacreatureofcircumstances,overwhelmedandleftbehindbytheonrushingandimpersonalforcesofchangethatyoucannotaffect.

Goalsgivepower,purpose,anddirectiontoyourlife.Goalsbringouttheverybestthatisinyou,enablingyoutorealizeyourfullpotential.

GoalSettingBringsOuttheBest

Goalsettingrequireslong-termthinking,slowthinking,andinformedthinking.Akeysuccessprincipleisforyouto“thinkonpaper.”Theveryactofwritingdownwhatyouwantdramaticallyincreasesyourprobabilityofachievingit.Remember,youcan’thitatargetthatyoucan’tsee.Youcan’thitatargetunlessyoucanclearlydescribeitonpaper.

Thequalityofyourthinkingisgreatlyenhancedbythequalityofthequestionsthatyouaskyourself,especiallyintheareasofgoalsettingandgoalachieving.Herearesomequestionsthatyoushouldaskandansweronaregularbasissothatyoucanmaintainhighlevelsofclarity,focus,andconcentration:

DETERMINEWHATYOUREALLYWANT

Whatdoyoureally,really,reallywanttodowithyourlife?Itseemsthatwhenyouaskthisquestion,itisthethird“really”thathelpsyou

todevelopabsoluteclarityaboutwhereyouwanttobesometimeinthefuture.

Whenyouask“really”threetimes,youdrilldeeperintowhatyouwantmorethananythingelse.

WHATDOYOUREALLYVALUE?

Whatareyourvalues?Whatareyourbasicorganizingprinciples?Whatvirtuesandqualitiesaremostimportanttoyouandmostimportantinthepeoplewhomyoulikeandadmire?

Mostproblemsinhumanlife,mostconfusion,canberesolvedbyareturntovalues.Yourvaluesmakeupyourcore.Theyaretheaxlearoundwhichyourliferevolves.Yourvaluesdetermineyourdeepestemotions.Theydetermineyourbeliefs,expectations,andattitude.“Youdon’tseewhatyoubelieve;youseewhatyouhavealreadydecidedtobelieve.”

Foroneweek,askyourselfthisquestionrepeatedly:“Whatismymostimportantvalueinlife?”

Don’tbesatisfiedwithyourfirstanswer.Yourfirstanswerwillalwaysbesomethingsimple,obvious,andadmirabletootherpeople.Butkeepaskingthequestion.“Whatismymostimportantvalueinlife?”Youmaybesurprisedattheansweryoueventuallycomeupwith.

YOURTHREEMOSTIMPORTANTGOALS

Whatareyourthreemostimportantgoalsinliferightnow?Writedownyouranswerinthirtysecondsorless.Whenyouonlyhavethirty

secondstowritedownyourthreemostimportantgoalsinlife,youranswerswillbeasaccurateasifyouhadthirtyminutesorthreehours.Whatarethey?

NOFEAROFFAILURE

Imaginethatyouhave$20millioninthebankbutyoudiscoverthatyouonlyhavetenyearslefttolive.Whatwouldyouchoosetodowiththenexttenyears?

Thisquestionliberatesyoutemporarilyfromthelimitingconcernovermoneyandresources.Mostpeopleholdbackondoingwhattheyreallywanttodobecausetheyfeelthattheycannotafforditorthattheydonothaveenoughtime,talents,orresourcestoachieveit.

Butwhenyouimaginethatyouhave$20millioninthebankandyoumustchoosetodosomethingwiththenexttenyears,youwilloftenseeclearlywhatis

mostimportanttoyou—your“heart’sdesire.”Whatmightitbeforyou?

SIXMONTHSTOLIVE

Imaginethatyouvisityourdoctorforacompleteexamination.Hethensitsyoudownandtellsyouthathehasgoodnewsforyouandbadnews.Thegoodnewsisthatyouaregoingtoenjoysuperbphysicalhealthforthenextsixmonths.Thebadnewsisthatyouaregoingtodropdeadofanincurableillnessonthe181stday.

Ifyouonlyhadsixmonthslefttolive,howwouldyouspendyourtime?Whatwouldyoudo?Whowouldyouspendyourtimewith?Whatwouldyouwanttocomplete?Whatkindoflegacywouldyouwanttoleave?

Thesequestionshelpyouclarifywhatitisthatyouvalueandwhatisreallyimportanttoyou.You’vehearditsaidthat“Nooneontheirdeathbedeversaidthattheywishedtheyhadspentmoretimeattheoffice.”

YOURFEELINGOFIMPORTANCE

Whatsortsofactivitiesgiveyouyourgreatestfeelingofimportance,ofpersonalvalueandself-esteem?

DaleCarnegieoncesaid,“TellmewhatgivesamanhisgreatestfeelingofimportanceandIwilltellyouhisentirephilosophyoflife.”

Whatactivitiesoraccomplishmentshavebeenmostresponsibleforyourgreatesthappinessinlifetodate?Whatdoyoudoespeciallywell?Whathasbeenmostresponsibleforyourbiggestsuccesses?Whatwouldyouliketodo,alldaylong,evenifyoudidn’tgetpaidforit?

ONEGREATGOAL

Whatonegreatgoalwouldyoudaretosetforyourselfifyouknewyoucouldnotfail?

Thefearoffailureisthegreatestsingleobstacletosuccessandtheprimarycauseoffailureinadultlife.Imaginethatyouhavenolimitations.Imaginethatyouhaveallthetimeandmoney,allthepeopleandrelationships,allthefriendsandcontacts,andallthetalentandabilitythatyouneedtoaccomplishanygoalthatyoucansetforyourself.Whatwoulditbe?

Yourabilitytothinkclearlyaboutwhoyouareandwhatyoureallywantiscentraltoyourlivingahigh-performancelife.Askingandansweringthesequestionsonaregularbasishelpyoutodevelopclarity,focus,andconcentration.

Goal-SettingProcess

NapoleonHilloncewrotethatthekeytosuccessistouse“provensuccessformulas.”Findoutwhatothersuccessfulpeopledooverandover,andthendothesamethingsthattheydo.BytheLawofCauseandEffect,ifyoudowhatothersuccessfulpeopledo(thecauses),youwillsoongetthesameresults(theeffects)thattheydo.

Thereisasimplebutpowerfulprocessofsettingandachievinggoalsthatyoucanuseimmediatelytotransformandevensuperchargeyourlife.Hereitis:

1. Decideexactlywhatyouwant.Mostpeopleneverdothis.Mostpeoplewantmanydifferentthingsbutnoonethinginparticular.Amajorreasonforfailureinadultlifeisthatmostpeoplethinkthey

alreadyhavegoals.Butwhattheyhavearenotgoals.Theyaremerelywishes,hopes,andfantasies.Arealgoal,ontheotherhand,issomethingclearandspecific.Einsteinsaid,“Ifyoucannotexplainyourgoaltoasix-year-oldchild,you

probablyaren’tclearaboutityourself.”2. Writeitdown.Agoalthatisnotinwritingismerelyawishorahope.Itis

saidthatgoalsare“dreamswithdeadlines.”Whenyouwritedownagoal,youtakeitoutoftheairandmakeitclearandtangible.Youcanseeit,touchit,andreadit.Itnowexists,whereasbeforeitwasmerelyafigmentofyourimagination,likecigarettesmokeinalargeroom,withnoformorsubstance.Only3percentofadultshaveclear,writtengoals,andeveryoneelse

worksforthem.Theyearnandaccomplishtentimesasmuchastheaveragepersonoverthecourseoftheirworkinglifetimes.Peoplewithwrittengoalsoftenaccomplishmoreinoneyearthantheaveragepersonaccomplishesinfiveortenyears.Hereisthediscovery:Eachgoalyouwritedown,andeachtimeyouwrite

it,youareactuallywritingandprogrammingintoyoursubconsciousmind.Onceyouhavewrittendownagoal,yoursubconsciousmindacceptsthis

asacommandandbeginsworkingtobringthisgoaltoyou,andbringyouto

thisgoal,twenty-fourhoursaday,wakingandsleeping.Writtengoalsareverypowerful.

3. Setadeadline.Adeadlineactsasa“forcingsystem”foryoursubconsciousmind.Itgivesyoursubconsciousandsuperconsciouspowersatargettoaimat.Fromthetimeyouwritedownyourgoalandsetadeadline,youwillbemoremotivatedthanevertotakethestepsnecessarytoachieveit.AwrittengoalwithadeadlineactivatestheLawofAttraction.Youbegin

toattractintoyourlifepeople,ideas,resources,andopportunitiestohelpyoutomovefastertowardyourgoal.Whathappensifyoudon’tachieveyourgoalbythedeadline?Simple—

setanotherdeadline.Manythingscanhappenoverwhichyouhavenocontrolthatcansetbacktheaccomplishmentofyourgoal.Noproblem.Justsetanotherdeadline.Remember,therearenounrealisticgoals,merelyunrealisticdeadlines.

4. Makealist.Writedowneverythingyoucanthinkofthatyoucoulddotoachieveyourgoal.Includethepeople,knowledge,andresourcesyouwillneed.Keepaddingtothislistuntilitiscomplete.Theveryactofmakingalistofeverythingyoucanthinkoftoachieve

yourgoalincreasesyourbeliefthatthegoalisattainable.Itmotivatesandstimulatesyou.AsHenryFordsaid,“Anygoalcanbeachievedifyoubreakitdownintoenoughsmallparts.”

5. Organizethelistintoaplan.Thefirstwayyouorganizethelistisbysequence.Createachecklist,alistofallthesteps,oneaftertheother,thatyouwillhavetotaketoachieveyourgoal.Workingfromawrittenchecklistwillincreasethespeedatwhichyouachieveyourgoalbyperhapsfiveortentimes.Thesecondwayyouorganizeyourlistisbypriority.Whatismore

important,andwhatislessimportant?Twentypercentoftheitemsonyourlistwillaccountfor80percentofyoursuccess.Whatarethey?

6. Takeactionimmediatelyonyourplan.Dosomething.Doanything.Takethefirststep.AsEinsteinsaid,“Nothinghappensuntilsomethingmoves.”Nothinghappensuntilyoumoveaswell.

7. Dosomethingeverydaytomoveyoutowardtheachievementofyourmostimportantgoal,whateveritisatthattime.Nevermissaday,sevendaysaweek.Whenyoudosomethingeveryday,youtriggerthe“momentumprinciple”

ofsuccess.Itmaybehardtotakethefirststep,togetgoingtowardyourgoal,butafterthatitbecomeseasierandeasier.Youdevelopmoreandmore

momentum.Youmovefastertowardyourgoal,andyourgoalmovesfastertowardyou.Andyoucanalwaysseethefirststep.

Goal-SettingExercise

Hereisasimpleexercisethathastransformedthelivesofhundredsofthousandsofpeoplearoundtheworld.Itissoeffectivebecauseitissosimple.

1. Takeoutacleansheetofpaperandwritetheword“Goals,”plustoday’sdate,atthetopofthepage.Thenwritedowntengoalsthatyouwouldliketoachievewithinthenexttwelvemonths.Thesemaybeone-weekgoals,one-monthgoals,six-monthgoals,or

twelve-monthgoals.Buttheyareallgoalsthatyouwouldliketoachieveoverthenextyear.Itseemsthatgoalsyouwanttoachievewithinoneyeararemore

motivationalthangoalsthatreachfiveortenyearsintothefuture,eventhoughyouwilleventuallysetthesegoalsaswell.Whenyouwritedownyourgoals,usethethreePs.Makethempresent

tense,personal,andpositive.Yoursubconsciousmindcanonlyworkonagoalthatisproperlyphrasedthisway.Eachgoalstartswiththeword“I”followedbyanactionverb.Forexample,yourgoalcouldbe,“Iearn$XXXbyDecember31ofthis

year.”Writeyourgoalasthoughyouhavealreadyachieveditandyouare

explainingtosomeoneelsewhatyouhavealreadyaccomplished.Insteadofsaying,“Iamgoingtoquitsmoking,”youwouldwrite,“Iama

nonsmoker.”Writedownthefirsttengoalsyoucanthinkofinthepresenttense,and

makethempersonalandpositive.2. Onceyouhaveyourlistoftengoals,askthisquestion:“Whichonegoalon

thislist,ifIweretoachieveit,wouldhavethegreatestpositiveimpactonmylife?”Thereisalwaysonegoalthatfitsthisdescription.Onceyouhaveselected

thisgoal,itbecomesyour“majordefinitepurpose”inlife.3. Transferthisgoaltothetopofacleansheetofpaper,makingitpersonaland

positiveandinthepresenttense.Forexample,“Iearnthisspecificamountofmoneybythisdate.”

4. Youthenmakealistofeverythingyoucanthinkoftoachievethisgoal.Writedownatleasttwentyideas.Writedowntheobviousanswersandthentheoppositetoeachofthose

answers.Keepwritinguntilyouhavetwentydifferentactionsyoucouldtakethatwouldhelpyoutoachievethisgoal.

5. Organizethislistintoaplan,achecklistwiththethingsthatyoucoulddo,fromfirsttolast.

6. Takeactionimmediatelyononetask,thefirstitemonyourlist,andcompletethisonetaskassoonaspossible.

7. Fromthenon,dosomethingeverydayonthislisttomoveyoutowardyourmajorgoal.Neverallowanexception.Dothissevendaysaweek.

ThinkAboutYourGoal

Rememberthegreattruth:Youbecomewhatyouthinkaboutmostofthetime.Eachmorningwhenyougetup,thinkaboutyourgoal.Alldaylong,thinkaboutyourgoal.Intheevening,reviewyourprogressonyourmajorgoal.

Themoreyouthinkaboutyourgoal,themoreideasyouwillgettoachieveit.Intensegoalorientationstimulatesyoursubconsciousandsuperconsciousmindstowardgoalattainment.Themoreyouthink,plan,andworkonyourmajorgoal,thefasteryoumovetowardit,andthefasteritmovestowardyou.

Begintodaytobecomeagoal-focusedperson.Thiswillhelptounlockyourmentalpowers,stimulateyourcreativity,channelyourenergies,andmotivateyouforwardmorethananyothersingleactivity.

ACTIONEXERCISES

1. Decideexactlywhatyouwantinoneareaofyourlife,theonegoalthatcouldhavethemostpositiveimpactonyourlife.

2. Writeitdown,makingitpersonal,positive,andinthepresenttense,asifitwerealreadyareality.3. Makeaplantoachievethisonegoal,andthendosomethingeverydaythatmovesyouclosertoit.

5

Result-OrientedThinkingVersusActivity-OrientedThinking

Itisthosewhohavethisimperativedemandforthebestintheirnatures,andwhowillacceptnothingshortofit,thatholdthebannersofprogress,thatsetthestandards,theideals,forothers.

—ORISONSWETTMARDEN

ANOTHERMAJORTURNINGPOINTinmylifetookplaceinmytwentieswhenIlookedaroundandnoticedthattherewerelotsofpeoplemysameagewhoseemedtobedoingmuchbetterinlifeandworkthanIwas.Theyworenicerclothes,hadbetterjobs,anddrovenewercars,andsomeofthemevenhadhomesandfamilies.

Meanwhile,Idroveanoldcar,woreoldclothes,workedatasalesjob,thoughtabouthowmucheverythingcost,andworriedaboutmoneyallthetime.Thisisnotagreatwaytolive.

MyturningpointcamewhenIstartedtoask,“Whyisitthatsomepeoplearemoresuccessfulthanothers?”

Thisquestionchangedmylife.Itsetmeoffonalifelongsearchtofindtheanswers.IntheBible,itsays,“Seek,andyeshallfind,...[for]hethatseekethfindeth.”Thisturnedouttobetrueforme.AsIbeganaskingthisquestion,theanswersstartedtocometome,likeironfilingsattractedtoamagnet.

MakeMoreMoney

Inmonetaryterms,theanswerwassimple,obvious,andclear.Highlypaidpeoplearehighlyproductive.Theyusetheirtimebetterthanaveragepeople.Theygetmoreandbetterresultsforwhichpeoplearewillingtopaythem.They

spendmoreandmoretimedoingmoreandmorethingsofgreaterandgreatervalue.

Hereisaquestion:Whatisyourmostvaluablefinancialasset?WhenIfirstheardthisquestion,Iwasnotclearabouttheanswer.ThenIlearnedthatitisyour“earningability.”Yourabilitytoearnmoneyisyourmostvaluablefinancialasset.

Youcouldloseyourjob,yourhome,yourcar,andallyoursavingsandinvestmentsandbelefttherestandingonthesidewalkwithonlytheclothesonyourback.Butaslongasyoustillhadyourearningability,youcouldearnitallbackandmore.Thishashappenedsomanytimesforsomanypeoplethatitisalmostanurbanlegend.

WhydotheCEOsofFortune500companiesearnanaverageofmorethan$10millionperyear?It’sbecausetheyhavedevelopedtheirearningabilitytothepointwheretheycangetresultsthataresometimeshundredsoftimesgreaterthantheirsalariesintermsofprofitabilityfortheircompanies.Companiesarewillingandeagertopaythemalmostanyamountbecauseoftheirprovenabilitytogeneratemillionsandevenbillionsofdollarsinprofits.Andiftheylosttheirjobsforanyreason,theywouldimmediatelybehiredbyanotherlargecompanyandpaid$10millionperyearormore.

EarningAbilityDefined

Yourearningabilityisyourabilitytogetresultsthatpeoplewillpayyoufor.Itisnotyourabilitytogotowork,putinyourtime,and“playwellwiththeotherkids.”Itisyourabilitytogetthejobdonequicklyanddependably,ontimeandonbudget.

Allsuccessintheworldofworkboilsdowntoonesimpleresult:taskcompletion.Inthefinalanalysis,yourabilitytocompleteyourtasksconsistentlyanddependablyiswhatmakesyouavaluableandindispensableresourcetoyourorganization.

Toppeopledeveloptheabilitytocompletebiggerandbiggertasksthathavemoreandmorevalue.Theydevelopthereputationofbeingthe“go-toperson.”

Peoplesay,“Ifyouwantitdonequicklyandwell,giveittohimorher.”

JointheTop20Percent

The80/20ruleseemstoapplytotheworldofwork.Twentypercentofpeopleareonthefasttrack,continuallyincreasingtheirvalue,movingup,andearning

moremoney.Eightypercentofworkingpeopleinallfieldsaretimeservers.Theycometoworkatthelastpossibleminuteandleaveatthefirstpossibleminute.Whiletheyarethere,theyusetheirtimepoorlyincomparisonwiththepeopleonthefasttrack.

AccordingtoRobertHalfInternational,fully50percentofworkingtimeiswasted.Mostworkingtimeiswastedinidlechitchatwithco-workers.Itiswastedinnonstopelectronicdistractions,answeringe-mail,goingonandoffsocialmedia,replyingtotexts,andansweringtelephonecalls.Theaverageperson,includingmanagers,checkshise-mailforty-fivetimesaday.

Peoplewastetheirtimebycominginlate,leavingearly,andtakingextendedcoffeeandlunchbreaks.Theyreadthenewspaper,takecareofpersonalbusiness,andgenerallyfunctionatalowlevelofperformance.

TheRootsofPoorPerformance

Whyisthis?Itislargelytheresultofhabitsformedearlyinlife.Thefirstexposureto“work”iswhenthechildgoestoschoolforthefirsttime.Thechildissurroundedbyotherchildrenofhisorhersameage.Whatdoyoudowithchildrenofyoursameage?Youplay!

Fromtheageoffiveorsix,schoolbecomestheprimaryplayplaceforthechild.Overtheyears,thechildevolvesthroughtheschoolsystem,primarilyfocusedonsocialinteractionandplayingwiththeotherkids,beforeschool,duringschool,afterschool,andonweekends.

Thentheyoungadultfinishesschoolandgoestoworkforthefirsttime.Thefirstthingheseeswhenhelooksaroundathisnewjobisotherpeoplehissameage.Whatdoyoudowithotherpeopleyoursameage?Youplay!

TheEffectofHabit

Asaresultofhabit,almostautomatically,workbecomesanextensionofschool.Itbecomestheprimaryplayplaceinadultlife.Itisestimatedthattheaveragepersondoesnotreallystartworkuntilabout11:00a.m.andthenbeginstoslowdownandwrapupthedayatabout3:30p.m.Inbetween,hespendsmostofhistimeplayingwithhisfriends.Butthisisnotforyou.

Wastingyourtimeandplayingwithyourfriendsalldaylongisforpeoplewhohavelittleornofuture.Butyouaredifferent.Youseesuccessandaccomplishmentatworkasyourspringboardtoachievingyourgoalsandaccomplishingeverythingyouwantinlife.

WorkAlltheTimeYouWork

Here,then,istherule:Workallthetimeyouwork.Whenyougotowork,work.Donotplaywithyourfriends,checkyoure-maileveryfiveminutes,readthenewspaper,ortakecareofpersonalbusiness.Workallthetimeyouwork.Ifyouarereallyseriousaboutgettingresults,startalittleearlier.Workalittleharderduringtheday.Stayalittlelater.Pickupthepace.Movefaster.Keepfocusedonyourmostimportanttasks.Don’twastetime.

Ifsomeonewantstotalkwithyou,yousay,“I’dlovetotalktoyou,butrightnowIhavetogetbacktowork.”

Thisshutsmostpeopledownimmediately.Howcantheystopyoufromgetting“backtowork”?Tellthemthatyouwouldbedelightedtotalktothemafterworkorontheweekend.Meanwhile,yourpersonalmantrais“Backtowork!Backtowork!Backtowork!”

Yourgoal,knownonlytoyou,istodevelopthereputationforbeingthehardest-workingpersoninyourcompany.Workallthetimeyouwork.

WhenAreYouWorking?

Manypeoplethinkthatbecausetheyareatwork,theyareactuallyworking.Butyouareonlyworkingwhenyouarestartingandcompletingimportanttasks.Youareonlyworkingwhenyouaregettingresultsthatyourcompanywantsandneedstogeneraterevenuesandcreatevalue.Toppeoplespendmoreandmoretimedoingthingsofhighervalue.Averagepeoplespendmuchormostoftheirtimeonactivitiesoflowervalueornovalueatall.

Allteaching,books,andcoursesontimemanagementcomedowntohelpingyouaskandanswerthequestion,“Whatisthemostvaluableuseofmytimerightnow?”Yourabilitytoaskandanswerthisquestionaccurately,andthentodoexactlywhatisthemostvaluableuseofyourtime,determinesyoursuccessinyourcareerasmuchasormorethananyothersinglefactor.

GetStartedandKeepGoing

Youcanuseaseriesofstrategies,tactics,methods,andtechniquestogetstartedandthentokeepgoinguntilyoucompletethemostimportanttaskbeforeyou.Tomanageyourtimeeffectivelyandgetmaximumresults,youbeginwithcleargoalstowhichyouarecommitted.

Someofthemostimportantquestionsthatyoucanaskandansweronaregularbasisarethefollowing:

1. WhatamItryingtodo?2. HowamItryingtodoit?3. Howisthisworkingforme?AmIgettingthekindsofresultsIwant?4. Whataremyassumptions?5. Whatifmyassumptionsinthisareaarewrong?6. CouldtherebeabetterwaytoachievetheresultsthatIwant?7. IfIwasstartingthisworkoveragain,whatwouldIdodifferently?

Onceyouareclearaboutyourmostimportantgoalorobjective,yourtoppriority,youcanuseaseriesofprovenmethodsandtechniqueseachdaytogetyourmostimportanttaskcompletedontime.

TimeManagementTools

Themostpowerfultimemanagementtoolisalist.Youstartwithyourmajorgoalorgoalsandthenmakechecklistsofeverythingyouwillneedtodotoachievethatgoal.Inyourwork,youbeginwithalistofeverythingyouwanttoaccomplishthatday.

Ideally,youshouldcreateyourworklistthenightbefore,attheendofyourworkday.Whenyouplanyourdaythenightbefore,youareinrealitysettingaseriesofmini-goalsforthefollowingday.Writingitoutintheeveningallowsyoursuperconsciousmindtoworkonyourlistofmini-goalswhileyousleep.Youwilloftenawakewithideasandinsightsthatyoucanusetogetmoreofyourmostimportantworkdonefaster.

Ifyouwerenotabletomakeoutalistthenightbefore,thefirstthingyoudointhemorning,beforeanything,istoplanyourdayonpaper.Makealistofeverythingyouintendtoaccomplishthatday.Refusetodoanythingthatyouhavenotfirstwrittendownonyourlist,notevenatelephonecall.

Theveryactofworkingfromalistwillincreaseyourproductivityby25–50percenttheveryfirstday.

Don’tCheckYourE-mail

Disciplineyourselftonotcheckyoure-mailfirstthinginthemorning.Youcandoubleandtripleyourproductivitybybreakingtheaddictiontoelectronicinterruptions,especiallye-mail.Instead,resolvetocheckyoure-mailonlytwiceperday,at11:00a.m.andat3:00p.m.Turnoffthesoundonyourcomputerthatalertsyoutoincominge-mails.Donotallowyourselftobecomeaslavetosomeoneelserandomlycommunicatingwithyouonissuesthatinmostcasescanwaituntillater,andevenmuchlater.

SetPrioritiesonYourList

Onceyouhavepreparedyourlist,youroutlinefortheday,yousetprioritiesonyourlistinthreedifferentwaysbeforeyoubeginworking.Thisisanotherdisciplineorhabitthatcandramaticallyincreaseyourproductivity,performance,andoutput.

First,applythe80/20ruletoyourdailytasksandactivities.Rememberthat80percentofyourresultswillcomefrom20percentoftheitemsonyourlist.Ifyouhavetenthingstodoinaday,twoofthoseitemswillbeworthmorethantheothereightputtogether.Whatarethey?

TheABCDEMethod

UsetheABCDEmethodtocategorizeyourtasks.Applytheideaof“consequences”toeachactivity.Intimemanagement,somethingthatisimportanthasseriouspotentialconsequences.Somethingthatisunimportanthaslowornoconsequencesatall.Thinkbeforeyouact.

A=Mustdo—thereareseriouspotentialconsequencesfordoingornotdoingthistask.PutanAnexttoeachofthemostimportantitemsonyourlist.

B=Shoulddo—therearemildconsequencesfordoingornotdoingthis,butitisnotasimportantasyourAtasks.

C=Nicetodo—buttherearenoconsequencesonewayoranotherifyouhaveacoffeebreak,chatwithaco-worker,orcheckyoursocialmedia.

D=Delegate—youshoulddelegateeverythingthatyoupossiblycan,eventasksthatyoulikeandenjoy,tofreeupyourtimefordoingonlythosefewthingsthatyoucandobestandaremostimportant.

E=Eliminate—deliberatelystopdoingalllow-value/no-valuetasksandactivities.

Onceyouhaveputaletternexttoeachtask,gothroughandputA-1,A-2,A-3nexttoyourmostimportantAtasks.ThendothesamethingwithB-1,B-2,B-3,andsoon.

TheruleisthatyouneverdoaBtaskwhileyouhaveanAtaskleftundone.BeginimmediatelytoworkonyourA-1task.Onceyouhavedecidedthisorderofpriority,everythingelseonyourlistisawasteoftimecomparedwithyourA-1task.

Practicethe70percentrule.Ifanyoneelsecandothis70percentaswellasyou,delegateandpassoffthistasktothatperson.Becauseofthecomfortzone,webecomeaccustomedtodoingthingsofnoorlowvaluethatweoncedidinthepastbutthatarenolongerimportanttotheresultsweareexpectedtoachieve.

FocusonyourAtasksonebyoneuntiltheyarecomplete.

TheLawofThree

OneofthemostpowerfulandproductivetimemanagementtoolsiscontainedintheLawofThree.Thislawstatesthatthereareonlythreetasksthatyoudothataccountfor90percentofthevalueofyourcontributiontoyourcompanyandtoyourself.Everythingelseyoudofallsintheother10percent.

Withmyclients,Iaskthemtomakealistofeverytask,largeandsmall,thattheydointhecourseofaweekoramonth.Mostpeopleendupwithtwentytothirtytasks.Somepeoplecomebackwithalistcontainingfiftyorsixtytasks!Onceyouhaveyourlistoftasks,youaskthethreemagicquestions:

1. IfIcoulddoonlyonethingonthislist,alldaylong,whichoneactivitywouldcontributethegreatestvaluetomycompanyandmyself?

Thisanswerusuallyjumpsoutatyoufromthepage.Itisusuallyobviousandclear.Andyoumustknowthisanswer,whateveritis.Itisimpossibleforyoutobehighlyproductiveunlessyouarecrystalclearaboutthemostvaluablethingyoucouldpossiblybedoing.

MaketheMainThingtheMainThing

WhenIconductedapersonalstrategicplanningexercisewiththepresidentofalargecompany,hefeltthathewasquiteclearaboutthemostimportantthinghecouldbedoingalldaylong.Butaswediscusseditfurther,itturnedoutthathewascompletelywrong.Itwasanimportanttask,tobesure,butitwasnothistasktodo.Themostvaluableuseofhistimewassomethingcompletelydifferent.

Thisrevelationchangedhiscareerandthedirectionofthecompany.Inthenexttwelvemonths,witheveryonepracticingthisLawofThree,thecompanydoubledinsalesandprofitability.

2. Nowaskyourself,“IfIcoulddoonlytwothingsonthislistalldaylong,whatwouldbenumbertwo?”Thisisnotalwayseasytodetermine.Often,youwillneedtositwithyour

boss,colleagues,andco-workersandgettheirinput.Itisnotunusualforyoutoconcludethatonetaskismoreimportant,buttoyourbossandco-workerssomethingelseyoudoisvastlymoreimportant.

3. Nowaskyourselfthethirdmagicquestion,“IfIcouldonlydothreethingsonthislist,alldaylong,whatwouldbethethirdmostimportanttask?”

Again,ifyouarenotsure,askthepeoplearoundyou.Forsomepeople,theanswersareclearassoonasyouaskthequestions.Forothers,theanswersareunclear.Butyoumustknowtheanswerstothesequestions.Ifyoudon’t,youareindangerofwastingyourtimedoingthingsoflesservalueormaybeeventhingsofnovalueatall.

FourCorollariestotheLawofThree

Onceyouhavedeterminedyour“bigthree,”practicethissimpleformulatodoubleandtripleyourproductivityandoutput:

1. Dofewerthings.Thefactisthatyouwillnevergetcaughtup.Youwillneverbeabletodoallthethingsthatyouhavetodo.Theonlywaythatyoucangetcontrolofyourlifeisbystoppingdoingthingsoflowvalue.

2. Domoreimportantthings.Workononeormoreofyourthreemostimportanttasks.

3. Doyourmostimportanttasksmoreofthetime.Spendyourentiredayonthemifyoupossiblycan.

4. Getbetterateachofyourmostimportanttasks.Continuouslearningandpersonalimprovementareessentialtoyoursuccess,butinwhatareas?Answer:Getbetteratachievingresultsatthosetasksthataremoreimportantthananythingelse.

QuestionstoAsk

Oneofthebestofalltimemanagementquestionsisthis:“Whatonetask,ifIweretodoitespeciallywell,wouldmakethegreatestpositivedifferenceinmywork?”

Thereisalwaysananswertothisquestion.Whatcanyou,andonlyyou,dothatifdonewellwillmakearealdifference?Whateveryouransweristothisquestion,youshouldbeworkingonthatmostofthetime.Thiswillalmostinvariablybeoneofyour“bigthree.”

Reviewyourlistofactivitiesforthedayandaskthisquestion:“IfIweretobecalledoutoftownforamonthandcouldonlydoonethingonthislist,whichonetaskwouldIwanttobesuretocomplete?”

Whateveryouranswertothatquestionis,isprobablywhatyoushouldstartworkingonfirstthinginthemorning.

OvercomingProcrastination

Yourabilitytoovercomeprocrastinationandgetstartedonyourmostimportanttaskisoneofthemostvaluabledisciplinesthatyoucandevelop.

Asithappens,everyoneprocrastinates.Highlyproductivepeopleprocrastinatejustasdounproductivepeople.Whatisthedifference?Theansweristhathighlyproductivepeopleprocrastinateonlow-valuetasks.Theypractice“creativeprocrastination.”Theyconsciouslydecideuponthosethingsthattheyarenotgoingtodountillater.

Unproductivepeopleprocrastinateontasksofhighvalue—thosefewtasksthatcanmakeallthedifferencetotheircompaniesandintheircareers.

Herearesomeprovenwaystoeliminateprocrastination:

1. Makealistofeverythingyouhavetodoeachdaybeforeyoubegin.Wehavealreadycoveredthisindetail.

2. Takeyourmostimportanttask,andmakealistofallthestepsyoucouldtaketocompletethatparticulartask.

3. Practicethesalamislicemethod.Sliceoffonepieceofalargetaskanddoonlythat.Oftenthiswillgetyoulaunchedintotheproject,andyourprocrastinationwilldisappear.

4. TrytheSwisscheesetechnique.Selectonepieceofamajortask,andresolvetocompletethatoneactionimmediately.Often,thiswillbreakthedamofprocrastinationandlaunchyouintothelargertask.

5. Rewardyourself.Giveyourselfaspecificreward,suchasacupofcoffeeorabriefbreakforcompletingoneofthesubtasksonyourlist.

6. Workinten-minuteblocks.Insteadofworryingaboutcompletingtheentiretask,resolvetoworkfullblastfortenminutestogetstarted.

7. Haveeverythingyouneedathandwhenyoubegin.Theactofpreparingtoworkoftenlaunchesyouintothejobitself.

8. Applythe80/20ruletoalargetask.Thisrulesaysthatthefirst20percentofthetaskoftencontains80percentofthevalueoftheentirejob.Resolvetodothefirst20percent,andyouwilloftenbreakthebackofprocrastinationonthattask.

Thekeytosuccessinyourworkistaskcompletion.Forthis,perhapsthesinglemostpowerfultimemanagementtechniqueis“single-handling.”

Thismeansthatonceyoustartworkonyourmostimportanttask,youdisciplineyourselftofocusandconcentrate100percentonthattaskuntilitiscomplete.

WellBegunIsHalf-Done

Thehabitofstartingandcompletingyourmostimportanttaskfirstthingeachmorningwilltransformyourlife.Taskcompletionreleasesendorphins,nature’s“happydrug,”inyourbrain.Theseendorphinsenhanceyourcreativity,improveyourpersonality,motivateyou,andgiveyouenergy.Theymakeyoufeelmorepowerfulandproductive.

Whenyoustartandcompleteanimportanttaskfirstthinginthemorning,youlaunchyourselfinto“thezone.”Youactuallyfunctiononahigherlevel,gettingmoretop-qualityworkdonefasteralldaylong.

FocusonResults

Keepasking,“Whatresultsareexpectedofme?”Andofalltheresultsthatyoucouldpossiblyachieve,whatarethemost

importantthingsyouneedtodoquicklyandwellthatcanmakethegreatestdifferenceinyourcareer?

Whateveryouransweristothisquestion,getstartedonthatonetaskimmediately,andkeepgoinguntilitiscomplete.Thedevelopmentofthishabitwillquicklymoveyouintotheranksofthemostproductivepeopleinyourbusinessandindustry.

ACTIONEXERCISES

1. Thinkonpaper.Writethingsdown.Alwaysworkfromalistor,evenbetter,achecklist.2. Determineyour“bigthree,”thosetasksthatrepresent90percentofthevalueofyourcontribution

toyourcompanyandtoyourself.3. Disciplineyourselftostartimmediatelyeachmorningonthemostvaluableuseofyourtime,and

thenpersistuntilthattaskis100percentcomplete.

6

PositiveThinkingVersusNegativeThinking

Holdyourselfresponsibleforahigherstandardthananybodyelseexpectsofyou.Neverexcuseyourself.Neverpityyourself.Beahardmastertoyourself—andbelenienttoeverybodyelse.

—HENRYWARDBEECHER

ARISTOTLE,perhapsthegreatestphilosopherofalltime,studiedthehumanconditionmoreextensivelythananyothermaninhistory.Heconcludedthattheultimategoalofhumanlifeandendeavorwashappiness.Hesaidthateveryactapersontakesisaimedatachievingagreaterstateofhappiness,howevertheindividualdefinesit.

Youwanttogetagoodjob.Why?Toearnmoremoney.Why?Tobeabletoprovideforyourfamilyandenjoyagoodlifestyle.Why?Toachievepersonalandfinancialsecurity.Why?Soyoucanbehappy.

TheTrueMeasure

Thetruemeasureofhowsuccessfulyouareinlifeishowhappyyouare—mostofthetime.Ifyouarewealthy,famous,orpowerfulbutyouarenothappy,youhavefailedinyourprimaryresponsibilitytoyourselfasahumanbeing.

Everyhumanactisaimedatachievingagreaterstateofhappiness,howevertheindividualdefinesit.Thisdoesnotmeanthateveryactleadstohappiness.Manypeoplemakeacompletemessoftheirlivesattemptingtoachievehappinessandoftenendupunhappierandmoredissatisfiedthantheywouldhavebeeniftheyhaddonenothing.TheyareexamplesoftheLawofUnintendedConsequencesandtheLawofPerverseConsequences.

Thepositiveemotionsoflove,joy,peace,excitement,success,andthefeelingthatyouarefulfillingyourcompletepotentialarewhateveryoneaimsatalmostallthetime.

WhatSuccessfulPeopleDo

Successfulpeoplepracticepositivethinkingmostofthetime.Asaresult,theyarehappier,moregenial,morepopularandderivemorerealpleasurefromlifethantheaverageperson.

Theoppositeofpositivethinkingisnegativethinking.Negativethinkerstendtobehostileandsuspicious.Theyaredistrustfulofothers,andtheyexpectnegativethingstohappentothemmostofthetime.Theyhavenegativepersonalitiesandarehighlycriticalofboththemselvesandthepeoplearoundthem.Nomatterwhathappens,theyareseldomsatisfiedforanyperiodoftime.Lifetothemisaseriesofproblemsanddifficultiesoverwhichtheyfeeltheyhavelittlecontrolandaboutwhichthereisnothingtheycando.

Manyyearsago,whenIbeganaskingthequestion,“Whyaresomepeoplemoresuccessfulandhappythanothers?,”Istartedstudyingthecontrastanddifferencebetweenpositiveemotionsandnegativeemotions.WhatIfoundchangedmylifeforever.

TheGreatDiscovery

WhatIdiscoveredisthateveryonewantstobehappy,howeverhedefinesit.Themainobstaclebetweeneachpersonandthehappinessthathedesiresisnegativeemotions.Negativeemotionslieattherootofvirtuallyallproblemsinhumanlife.Iftherewassomewaythatyoucouldeliminatenegativeemotions,youcouldwipeoutmostoftheproblemsofmankind.

Thereisawaytodothis.Natureabhorsavacuum.Ifyoueliminatenegativeemotions,yourmindautomaticallyfillswithpositiveemotions.Whenyoueliminatenegativeemotions,youbecomeafullyfunctioningperson.Whenyoueliminatenegativeemotions,youbecomecapableoffulfillingyourfullpotential.

Themainjoboflife,then,istoeliminatenegativeemotions.

OneThoughtataTime

Yourmindcanonlyholdonethoughtatatime—positiveornegative.Butifyoudon’tdeliberatelyholdapositivethoughtoremotion,anegativethoughtoremotionwilltendtofillyourmind,atleastatthebeginning.Negativethoughtstendtobeeasyandautomatic,thedefaultsettingofthebrainformostpeople.

Thinkingpositivelyactuallyrequireseffortanddeterminationuntilitbecomesahabitualresponsetolifeandcircumstances.Fortunately,youcanbecomeapurelypositivethinkerthroughlearningandpractice.

Thestartingpointofeliminatingnegativeemotionsistounderstandwheretheycomefrominthefirstplace.Thegoodnewsisthatnochildisbornwithanyfearsornegativeemotions.Allfearsandnegativeemotionsmustbetaughttothegrowingchildinhisorherformativeyears.Andbecausenegativeemotionsarelearned,theycanbeunlearned.

Becausenegativeemotionsarehabitualwaysofrespondingandreactingtopeopleandsituations,theycanbereplacedwithconstructivehabitsofrespondingandreacting.Thisisverymuchamatterofchoice.

AbrahamLincolnsaid,“Mostpeoplearejustaboutashappyastheymakeuptheirmindstobe.”

TheNewbornChild

Childrenarebornwithtwowonderfulcharacteristics,fearlessnessandspontaneity.Thenewbornchildiscompletelyfearless.Thegrowingchildwilltouch,try,ortasteanything,howeverdangerous.Parentshavetospendthefirstfewyearsofthechild’slifepreventingthechildfromkillinghimselforherself.

Thechildisalsobornspontaneous.Heorshelaughs,cries,pees,poops,andexpresseshimselforherselfwithoutlimitorconstraint,twenty-fourhoursaday.Achildhasnoconcernaboutthereactionsandresponsesofothers.Heorshesimplydoesnotcare.

FearsofFailureandCriticism

Atayoungage,becauseofmistakesthatparentsmake,childrenbegintodevelopthetwomainfearsofadultlife,thefearoffailureandthefearofcriticism.Whenparents,inanattempttorestrainorconstrainthechild’sbehavior,tellthechild,“No!Stopthat!Don’tdothat!Getawayfromthere!”and,evenworse,physicallypunishthechildforfearlesslyexploringhisorherworld,thechildsoondevelopsthebeliefthatheorsheissmallandincompetent.

Soonthechildrefrainsfromreachingoutandtryingnewthings.Heorshestartstosay“Ican’t,Ican’t,Ican’t”whenconfrontedwithanythingnewordifferent.

Thisfeelingof“Ican’t”soonturnsintothefearoffailure.Asadults,itbecomesapreoccupationwithlossorpoverty.Adultsfearthelossofmoneyandtime,thelossofsecurityandapproval,thelossoftheloveofsomeoneimportant,thelossofhealth,andthepossibilityofpoverty.Thisgeneralizedfearoffailureactsasabrakeonthechild’spotentialandthentheadult’spotential.Itisthesinglegreatestobstacletosuccessinadultlife.

THEFEAROFCRITICISM

Youngchildrensoonlosetheirnaturalspontaneityaswell.Astheresultofparentalmistakes,especiallymakingtheirloveandaffectiondependentuponthechild’sdoingwhattheywanthimorhertodo,thechildveryearlydevelopsfearsofcriticismandrejection.

Whenparentsbecomeangryandthreatentowithholdtheirapprovalifthechilddoesnotdowhattheywant,hebeginsthinkingtohimself,“ImustdowhatMommyandDaddywant,ortheywon’tloveme.”Because,tochildren,theloveandsecurityoftheirparentsaretheparamountconcernsintheirexistence,anythreatoflossofthisloveterrifiesthemandcausesthemtoengageinorrefrainfromanybehaviorthatmayleadtothisloss.

LOVEWITHHELD

Psychologistsgenerallyagreethatmostproblemsinadultlifestemfrom“lovewithheld”inearlychildhood.Themostpowerfulandprofoundwaytodistorttheadultpersonalityisrootedin“lovedeprivation”orthegivingandthenwithholdingoflovewhenthechildisyoung.

Childrenneedlovelikerosesneedrain.Withoutanendless,unbrokenflowofunconditionallove,thechildgrowsupemotionallyvulnerableandsoonbecomessusceptibletonegativeemotionsofallkinds.

AlexanderPopewrote,“JustastheTwigisbent,theTree’sinclined.”Anegativechildhoodleadstoanegativeadulthood.

DeficiencyandBeingNeeds

ThepsychologistAbrahamMaslow,whostudiedthepersonalitystylesofself-actualizingpeople,concludedthat98percentofadultsarelargelygovernedbywhathecalled“deficiencyneeds.”Insteadofstrivingtorealizetheirfullpotentials,theystrovethroughouttheirlivestocompensatefortheirperceiveddeficiencies,especiallythoseof“undeservingness”andthefeelingthat“I’mnotgoodenough.”

Maslowsaidthatonly2percentofadultsexperience“beingneeds,”whichhedefinedasthedesireandconfidencetogrowandrealizetheirfullpotentialsinlife.Hecalledthesethe“self-actualizing”peopleinoursociety,thosecharacterizedbyhighlevelsofself-esteemandself-confidence.

TheRussianMetaphysicians

Morethanonehundredyearsago,theRussianmetaphysiciansPeterOuspenskyandG.I.Gurdjieffdevelopedasystemofteachingtohelpidentifyandremovethesourcesandcausesofnegativeemotionsintheirstudents.Theyconcluded,asmodernpsychologistshave,thatifnegativeemotionswereeliminated,allthatwouldbeleftwouldbeafullymature,fullyfunctioning,completelypositive,self-actualizinghumanbeing.Reachingthisstateseemstobethegoalofmostpeopleinlife.

What,then,aretherootcausesofnegativeemotionsinadultlife?Thereareseveral.Letusexploretheminturn.

TheRootsofNegativeEmotions

1. Rationalization:Negativeemotionsarecreatedwhenweattempttoexplainawayasituationorabehaviorinourlivesthatisunpleasantforus.Rationalizationhasbeendefinedas“puttingafavorableinterpretationonanotherwiseunfavorableact.”Weattempttorationalizeandexplainawaythenegativebehaviorsthat

holdusbackfromenjoyingthesuccessandhappinessthatwetrulydesireinlife.Werationalizedishonestybysaying,“Everybodydoesit.”Werationalizeobesitybysaying,“Itisdeterminedbymygenesorbymyhormones.”Werationalizelaziness,lateness,lackofself-discipline,andpoorworkhabitsbysaying,“That’sjustthewayIam,”andthenbycomparingourselvesfavorablywithpeoplewhoaredoingevenworsethanwearesoweneverhavetoimprove.

Asaresultofcontinuallyrationalizingawayournegativebehaviors,webecomeunhappierandmoredissatisfiedandfailtomakeprogressinourlives.

2. Justification:Anothermajorsourceofnegativeemotionscomesaboutwhenwejustifyournegativebehaviorsbyexplainingthemawayinsomefashion.Wejustifyournegativeemotionsbytellingourselves,andanyoneelsewhowilllisten,thatwearethoroughlyentitledtoexperiencethisnegativeemotionbecauseofsomethingthatsomeoneelse,somewhere,hasdonetousortosomeoneelse.Justificationenablesustocreateelaboratereasonsforproblemsinour

livesandinthelivesofothers.Ifyoucouldnotjustifyanegativefeelingorbehavior,itwouldceaseimmediately.

3. Judgmentalism:Manyofournegativeemotionscomefromourtendencytojudgeotherpeople.Weactuallysetourselvesupasjudge,jury,andexecutioner.Wefindtheotherpersonguiltyofdoingornotdoingsomething,condemnhimforhismisbehavior,andpassasentenceuponhim.ThisiswhyoneofthemostimportantteachingsintheBible,andinother

religiousscriptures,is“Judgenot,thatyebenotjudged.”Whenyoujudgeandcondemnothers,foranyreason,findingthemguilty,youimmediatelyseethem,thinkaboutthem,andfeeltowardtheminanegativeway.IntheBible,italsosays,“Withwhatjudgmentyejudge,yeshallbe

judged.”Thismeansthatwhenyoujudgeandcondemnanotherperson,youactuallyjudgeandcondemnyourself.Eventhoughyouhavefoundhimguiltyandfeelnegativetowardhim,youactuallyfeelnegativetowardyourselfjustasmuchorevenmore.Andinmostcases,theotherpersondoesnotevenknowthatyouhavegonethroughthisjudgingandcondemningprocess.Thepersonatwhomyouareangrydoesn’tevenreallycare.

4. Hypersensitivity:Asaresultofthedevelopmentoffeelingsofrejectionandcriticisminchildhood,itisquitecommonforpeopletobecomehypersensitivetothethoughts,feelings,andbehaviorsofothersasadults.Weseecriticismsandslightswheretheydon’texist.Wearehypersensitivetowhatwethinkotherpeoplemightbethinkingandfeelingaboutus.Wearesoconcernedwithnotincurringthedispleasureordisapprovalofothersthatweareoftenparalyzedorheldbackfromtakingactionsthatareinourbestinterests.Insalesandinbusiness,wecontinuallymeetpotentialcustomerswho

cannotmakeabuyingdecisionofanykindwithoutconsultingandgetting

theoverwhelmingapprovalofoneormorepeopleintheirfamiliesorbusinesses.Hypersensitivityinextremeformscanactuallyparalyzepeopleandmakethemunabletomakedecisionsintheirbestinterests.

TheCauseofNegativeEmotions

Negativeemotionsultimatelyboildowntoangerofsomekind,eitherinwardlyexpressed,inthattheangermakesyousick,oroutwardlyexpressed,sothatitmakesothersfeelangryandhostile.

Mostpsychologicalandpsychosomaticproblemsarecausedbysuppressionofnegativeemotions,repressionofnegativeemotions,depressioncausedbynegativeemotions,projectionofournegativeemotionsontoothers,displacementofnegativeemotionsinthatwebecomeangrywithotherswhenwearereallyangrywithourselves,andsoon.

Thenegativeemotionsmostcommoninoursocietyare,firstofall,fearofallkinds,aswehavediscussed.Therearealsothetwinemotionsthatdrivemuchpoliticalactivityinmostsocietiesthroughouttheworld:envyandresentment.Thereisjealousy,coupledwithfeelingsofinferiority,sothattheindividualthinks,“Noonecouldeverloveme.”Thereareotherssuchashate,suspicion,hostility,anddistrust.

TheNegativeEmotionTree

Imagineapictureofthe“negativeemotiontree”:thefruitgrowingonthistreeareallofthenegativeemotionsthatyoucanexperience.Inordertoeliminateyournegativeemotions,youhavetocutdownthistree.

Hereisthegreatbreakthrough:Thetrunkofthenegativeemotiontreeisblame.Itisimpossibletoexperienceanegativeemotionwithoutblamingothersforsomethingthattheyhavedoneornotdoneofwhichyoudisapprove.Theminuteyoustopblaming,yournegativeemotionsceasecompletely.

EliminatingBlame

Andhowdoyoustopblaming?Theanswerisbothsimpleandrevolutionary.Itisimpossibleforyoutoblamesomeoneelseforanegativeemotionandacceptresponsibilityforthesituationatthesametime.Theveryactofaccepting

responsibilitycancelsthenegativeemotionassociatedwiththatsituation,person,problem,ordifficulty.

Andhowdoyouactivatethissenseofresponsibility?Yousimplysaythemagicwords“Iamresponsible.”

Thispositive,present-tenseaffirmationeliminatesnegativeemotionsofallkindsinstantly.

Becauseyourmindcanonlyholdonethoughtatatime—positiveornegative—youcancancelanynegativethoughtatanytimebysimplyrepeatingtoyourself,overandoveragain,“Iamresponsible!Iamresponsible!Iamresponsible!”

HowdoyouturnoutalltheChristmaslightsonyourtree?Simple.Youjerktheelectriccordoutofthesocket,andallthelightsgooutinstantly.

Howdoyougetridofallofyournegativeemotions?Thesameway—yousimplycancelthemwhenevertheyarisebyimmediatelysaying,“Iamresponsible!”Theyallstopimmediately.

Accept100PercentResponsibility

Thekeytoself-esteem,self-confidence,self-reliance,andself-respectisforyoutoaccept100percentresponsibilityforeverythingyouareandallthatyouwillbecomeinlife.Theinstantyouacceptcompleteresponsibility,withnoexcuses,youbecomecalm,clear,andpositive.Thesunrisesinyourlife,andalltheshadowsdisappear.

Thereisoneessentialpartofeliminatingnegativeemotions,andthatisthepracticeofforgiveness.Everyonehasbeenwrongedinlifeinsomewaybysomeone.Wehavehaddifficultchildhoods,negativeexperiencesgrowingup,badrelationships,jobsthatdidnotworkout,andinvestmentsthatwentbad.Everyonehasbeenliedto,cheatedon,hurt,takenadvantageof,andabusedinsomeway.Unfortunately,thisisnormalandnaturalandaninevitablepartofthehumanexperience.Theonlyquestionis,“Whatareyougoingtodoaboutit?”

FreelyForgiveandForget

Theansweristhatforyoutobefree,youmustfreeeveryoneelse.Foryoutobehappy,youmustforgiveeveryonewhohaseverhurtyouinanyway.Youmustopenly,freely,andcompletelyletgoofallnegativethoughtsyoustillthink,feel,orexperiencetowardanyoneinyourlife.Youmustissueablanketpardonforeveryone.

Atthispoint,inmyseminarsandworkshops,becauseofmyreasoning,mostpeopleagreethat,allthingsconsidered,theyaregoingtoforgiveeveryonewhohaseverwrongedtheminsomeway.Ifyouagreewiththeconceptofforgiveness,asmostpeopledo,thenthenextquestionis,“WhodoIneedtoforgive?”

Therearethreetypesofpeoplewhomyouneedtoforgive:

1. Youmustforgiveyourparents.Youmustletthemgoandsetthemfree.Youmustforgivethemforeverymistaketheyevermadeinraisingyou.Manychildrengrowupwithanunreasonablebeliefthattheirparents,

beingthemostimportantpeopleintheirlives,mustbeperfectandallknowinginsomeway.Thefactisthatyourparentsarenormalpeoplejustlikeyouwhomadeallkindsofmistakesbecauseofignoranceandinexperience.Youmustforgiveyourparentsforeverymistakethattheyevermadein

bringingyouup.Youmustletthemgocompletely.Evenbetter,youmustgotothemandtellthemthatyouforgivethemforeverythingtheyeverdidorsaidthathurtyouinanyway.Setthemfreeandbecomefreeyourself.

2. Youmustforgiveeveryotherpersonwhohaseverhurtyouinanyway—everypersonalrelationshiporbusinessassociation,eventhoserelationshipsandmarriagesthatcausedyouincredibleemotionalturmoilanddistress.Youmustforgive.Youmustissueatotalpardontoallthosepeopleyoustillthinkaboutfrom

timetotimeintermsofnegativity,anger,andthedesiretopunishthemorgeteveninsomeway.Remember,youarenotforgivingforthesakeoftheotherperson.

Forgivenessisaperfectlyselfishact.Youareforgivingforyourself.Bylettingthemgofree,byforgiveness,youareallowingyourselftogofreeatthesametime.

3. Finally,youmustforgiveyourself.Youmustforgiveyourselfforeverywicked,senseless,brainless,andstupidthingyoueverdidthathurtanyone,foranyreason,atanytimeinyourlife.Remember,thepersonyouaretodayisnotthepersonyouwerewhenyou

hurtsomeoneelseinsomeway.Thepersonyouaretodayisnotthepersonwhowouldeverdowhatyoudidataprevioustime.

LetItAllGo

Youmustsetyourselffreebyforgivingyourselfforeverymistakethatyouhaveevermade.Thetruthisthatinyourheartyouareathoroughlygoodperson.Anymistakethatyouhaveevermadeinthepastwasmadebecauseofyouth,inexperience,andalackofknowledgeorunderstanding.Butitisnowoverandgone.Thosearepastevents.Letthemgo,andgetonwiththerestofyourlife.

AsHelenKellersaid,“Whenyouturntowardthesunshine,theshadowsfallbehindyou.”

Yourmainjobinlife,ifyouwanttobecomeatotallypositiveperson,istoletthepastgoandturntowardthesunshine.Becomeatotallypositiveperson.Thinkaboutthethingsthatyouwantandneed.Thinkaboutwhereyouaregoingandwhatyoucanaccomplish.Thinkabouttheextraordinarypersonyouareandallthatyoucanbecome.

TheTripClause

Ihaveworkedwithmorethanonemillionpeopleontheseideas.Almostallofthemagreethattheyaregoingtoforgive,forget,andletgo.However,atthesametime,theyplantwithinthemselvestheseedsoftheirowndestruction.

Theysaysomethinglike“Iherebyresolvetoforgiveeveryoneinmylifewhohaseverhurtmeforanyreason.Isetthemfreeandletthemgo.(Exceptforthatonepersonorthatparticularsituation.)”

Allpsychological,emotional,andpsychosomaticproblemscanbetracedbacktothefailuretoletgoofonenegativeeventaboutwhichyouarestillangryandforwhichyoucannotforgive.

TheNewMercedes-Benz

Letmegiveyouanexample.Imaginethatyouorderabrand-newMercedes-Benzfromthefactory.Itisdelivered,perfectineveryrespect,exceptforone.Somehow,intheprocessofmanufacturingthecar,theengineershaveaccidentallyinstalledthebrakeononeofyourfrontwheelsincorrectly.Asaresult,thebrakelocksandthewheelfailstoturn.

Yougetintoyourbrand-newMercedes-Benzandturntheignitionkey.Theenginestarts,youshiftintogear,andyoustepontheaccelerator.Whatwouldhappen?Well,ifoneofyourfrontbrakeswaslocked,yourbeautifulcarwouldsimplygoaroundincircles.Youcouldturnthesteeringwheelandsteponthegas,butthecarwouldstillgoaroundinacircle,gettingyounowhere.Themore

yousteppedonthegas,thefasteryouwouldburnoutyourengineandyourreartires.

ReleaseYourBrakes

Itisthesamewithyourlife.Ifyouhaveonepersoninyourlifethatyourefusetoforgive,someonewithwhomyouarestillangry,itislikehavingalockedbrakeononeofyourfrontwheels.Yourlifewillspinaroundandaroundincircles.Youwillburnoutemotionallyandphysically.Youwillneverbetrulyhappy,andyouwillnevermakeanyprogress.Youwillthinkaboutthisnegativepersonoreventoverandoveragain,yearafteryear,keepingyourmentalfootonyouremotionalbrakes.

Thissingleinsightisthekeytounderstandingpsychologyandpsychosomaticillness.Itistherefusaltoletgoofasingleevent,andoftenseveralevents,thatlocksapersoninplaceandkeepshimorhertrappedinthepast.Withthisrefusaltoforgive,noprogressispossible.

Whatistheonepersonoreventthatyoucannotorwillnotletgoof?Whateveritis,youmusthavethecharacterandthecouragetoletitgo.Nomatterhowpainfulitwas,youmustsaythemagicwords:“Iforgivehimorherforeverything.Ilethimorhergo.Itisover.”

Responsibility,Control,andPositiveEmotions

Thereisadirectrelationshipbetweentheamountofresponsibilitythatyouacceptandtheamountofcontrolthatyoufeelinyourlife.Becausealmostallstressandnegativeemotionscomefromfeelingoutofcontrolinsomeway,assoonasyouacceptresponsibility,youassertcontroloveryourselfandeverythingthathappenstoyou.

Thereisadirectrelationshipbetweentheacceptanceofresponsibility,afeelingofcontrol,andpositivementalemotions.Themoreyouacceptresponsibilityandfeelincontrolofyourlife,themorepositiveyoufeelaboutyourselfandyourworld.Finally,thereisadirectrelationshipbetweenpositiveemotionsandhappiness.Andthechoiceiscompletelyuptoyou.

TakeControl

Whenyoublameanyoneelseforanything,yougiveupcontrolofyouremotions.Youturncontrolofyouremotionsovertothepersonyouareblaming,whetherheknowsitornot.Byblamingsomeoneelseforsomething,youenablethatpersontomanipulateandcontrolyouremotions—atlongdistance.Yougivehimpowerandcontroloveryourownhappinessbyyourrefusaltoforgivehimandtolethimgo.Andinmostcases,hedoesn’tevenknowhowmuchcontrolhehasoveryourhappinessandwell-being.

Bycomplainingaboutandcriticizingothers,yousetyourselfupasa“victim.”Byblamingothers,youmakeyourselffeelsmallandweak,angryandinferior.Insteadofseeingyourselfasatotallyresponsible,self-reliantindividual,youallowyourselftobecontrolledbyothersandnotinchargeofyourownlifeandemotions.Whenyoublameotherpeople,youbecomenegative,angry,suspicious,hostile,andweak.Isthiswhatyouhadinmind?

SaytheMagicWords

Thegoodnewsisthatatanytimeyoucansaythemagicwords“Iamresponsible”andputyourselfimmediatelybackintothedriver’sseatofyourownemotionallife.Wheneveryouexperienceanegativethoughtofanykind,immediatelycancelitwiththewords“Iamresponsible!”Dothisoverandoveragainuntilitbecomesautomaticandeasy.Acceptanceofresponsibilityisthemarkofaleader,anachiever,andaself-actualizingmanorwoman.

Resolvetodaytobecomeatotallyresponsible,completelymature,fullyfunctioningadult.Justsaythewords“Iamresponsible”overandoveragainandmeanit.Thisistherealkeytopositivethinking.

ACTIONEXERCISES

1. Resolvetodaytobecomeacompletelypositiveperson.Lookforthegoodineverypersonandsituation.Youwillalwaysfindit.

2. Decidetodaytoeliminatethenegativeemotionsthatinterferewithyourhappiness.Refusetothinkortalkaboutthethingsthatmakeyouangryorupset.

3. Issueablanketpardontoeveryonewhohaseverhurtyouinanyway.Practiceforgivenessonago-forwardbasis.

7

FlexibleThinkingVersusRigidThinking

Theindividualwhowantstoreachthetopinbusinessmustappreciatethemightandforceofhabit.Hemustbequicktobreakthosehabitsthatcanbreakhim—andhastentoadoptthosepracticesthatwillbecomethehabitsthathelphimachievethesuccesshedesires.

—J.PAULGETTY

INTIMESOFTURBULENCEandrapidchange,yourabilitytothinkflexibly,toconsidereveryaspectofasituationandthentorespondeffectivelytochange,canhaveanenormousimpactonyourbusinessandyourcareer.

In1952,AlbertEinsteinwasteachingatPrincetonUniversity.Oneday,hewaswalkingbacktohisofficewithhisteachingassistant,whowascarryingthecopiesofanexaminationthatEinsteinhadjustgiventoanadvancedclassofphysicsstudents.

Theteachingassistant,abithesitantly,askedDr.Einstein,“Excusemeforasking,butisn’tthisthesameexamthatyougavetothissameclassofphysicsstudentslastyear?”

Dr.Einsteinreplied,“Yes,itisthesameexam.”Theteachingassistantthenasked,evenmorehesitantlythanbefore,“But

howcouldyougivethesameexamtothesamestudents,twoyearsinarow?”Einsteinansweredsimply,“Becausetheanswershavechanged.”Atthattime,intheworldofphysics,newadvances,theories,anddiscoveries

werebeingmadecontinuallyallovertheworld.Theanswersthathadbeencorrectoneyearwerenolongercorrectthefollowingyearbecauseofnewideasandbreakthroughsinthefield.

YourAnswersHaveChanged

Yoursituationisthesame.Inmanyareasofyourlife,youranswershavechanged.Whatwastrueandvalidayearagoiseitherpartiallyortotallyobsoletetoday.Yourcherishedideasfromayearortwoago,orevenamonthago,arenolongervalidorrelevantintheturbulentmarketsoftoday.

Intechnology,forexample,theysaythataproductisalreadyobsoletewhenitfirsthitstheshelves.Bythetimeitcomestothemarket,itisalreadybeingreplacedeitherbythecompanythatdevelopeditorbyitscompetitors.Theshelflifeoftechnologyisshorterandshorter.Itisthesamewithinformationandcompetition.Thespeedatwhichtheyarechangingisalmostbreathtaking.

TheMostImportantQuality

In1995,theMenningerInstituteofNewYorkconductedastudytodeterminethemostimportantqualityorqualitiesthatwouldbenecessaryforbusinesssuccessinthetwenty-firstcentury.Itfinallyconcludedthatthemostimportantqualityrequiredforsuccesswouldbe“flexibility.”

Itwouldbetheabilitytorapidlyreactandrespondtotheacceleratingrateofchangeinallareas.Thedevelopmentofthisattitudeofflexibility,acceptingthat“theanswershavechanged,”wouldgiveanindividualoranorganizationatremendousadvantageovermorerigidandinflexiblecompetitors.

ChangeIsFasterandFaster

Wearelivinginthefastest-changing,mostdisruptive,andmostturbulentperiodinallofhumanhistory,exceptfortomorrowandnextweekandnextyear.

Rightuptothemiddleofthetwentiethcentury,itwasquitecommonforapersontocomeoutofschool,joinacompany,startajob,andstaythereforlife.

Today,asmanyas40percentofadultsarewhatarecalledcontingencyworkers—freelancerswhogofromjobtojobthroughouttheirworkinglivesasindependentcontractors.Manyofthemwillneverworkforacompany,excepttemporarily.

TwoMillionJobsDisappear

EveryyearinAmericaalone,onaverage,twomillionjobsdisappear.Theproductsandservicesthatcompanieswereofferingfelloutoffavorwithchangingcustomertastes,andtheskillsnecessarytoproducethoseproductsand

serviceswerenolongerrequired.Thisisamajorproblemintheworldofworktoday,anditisonlygoingtoaccelerateinthemonthsandyearsahead.

Fortunately,onaverageinAmerica,2.2millionormorejobsarecreatedeachyear.Fully80percentofnewjobcreationcomesfromnewcompaniesofferingnewproductsandservicestodifferentcustomersindifferentmarkets.

Becauseofthisrapidrateofchange,manyindustriesandmostcompaniesareoperatingtodayonthebasisofbusinessmodelsthatnolongerwork,orthatdon’tworkastheyusedtoincreatingasteadystreamofsalesandprofitability.

YourBusinessModel

Abusinessmodelisdefinedasthecompletesystem,frombeginningtoend,bywhichacompanyproducesandsellsaproductorserviceandgeneratesprofits.Thereareatleastfifty-fivedifferentbusinessmodelsthatacompanycanuse.Tryingtoachieveresultswiththewrongbusinessmodelforyourcurrentmarketcanleadtodecliningsalesandprofitabilityorevencorporatecollapse.

In2007,whenApplereleasedtheiPhone,theseniorexecutivesatBlackBerrydismisseditasatoyandassumedthatitwouldonlyappealtoyoungpeoplewhowantedtocommunicatewiththeirfriends.Withinfiveyears,itsmarketshareamongbusinessownersofcellphonesdroppedfrom49percentto0.4percent,andthecompanyhaslargelygoneoutofbusiness.

RapidObsolescence

WiththereleaseoftheiPad,andtheabilityofreaderstodownloadeBooksquicklyandinexpensively,theentirebookmarketchanged.Withinayear,Borders,oneofthelargestbookretailersintheworld,hadgonebankruptandshutdownitssixhundredstores.Thisishappeningtocompaniesinalmosteveryindustry.Becausetheyfailedtoadapttheirbusinessmodeltothenewmarketsituationdrivenbytheonslaughtofinformation,technology,andcompetition,long-establishedcompaniesquicklydisappearedintothepagesofbusinesshistory.

Yourpersonalbusinessmodel,thewayyouhaveorganizedyourlifeandcareer,maybepartiallyorcompletelyobsoleteaswell.Andifitisnotobsoletetoday,itwilldefinitelybeatsometimeinthefuture.

Businessesgetintotroublewhencustomertastesanddemandschange.Individualshaveproblemsintheircareerswhenemployerrequirements,intermsofspecializedtalents,skills,andabilities,changeaswell.Tosurviveandthrive

today,youmustbeonthecuttingedge,asanindividualoranorganization,ofthechangestakingplacearoundyou.

The80/20RuleandIncome

Today,manypeoplehaveobsoleteskills;theyarebeingreplacedbypeoplewithbetterandmoreappropriateskillsthatareinhigherdemand.GaryBecker,theNobelPrize–winningeconomist,reportedintheWallStreetJournalaboutastudyonincomegrowth.WhatBeckerfoundinresearchattheUniversityofChicagowasthattheaverageincomeofpeopleinthebottom80percentincreasedatabout3percentperyear,justequaltoorslightlyaheadoftherateofinflation.

However,theincomesofpeopleinthetop20percentwereincreasingatanaverageof11percentperyear,enablingthemtodoubletheirincomeeverysixorsevenyearsandmoveintotheupper-middleclassoreventhewealthyclassesoverthecourseoftheirworkinglifetimes.

Whatwasthemajordifferencebetweenthe20percentandthe80percent?Itwasthecommitmenttocontinuouslearningandupgradingofskills.Peopleinthetop20percentboughtallthebooks,attendedallthecourses,listenedtoalloftheaudioprograms,andcontinuallysoughtwaystodotheirjobsbetter,cheaper,andfaster.

UnplannedSkillObsolescence

Peopleinthebottom80percentwereexactlytheopposite.Theyseldomreadabook,tookacourse,ormadeanyefforttoupgradetheirskills.Theyspenttheirsparetimeinactivitiesthatweretensionrelievingratherthangoalachieving.Asaresult,theyfellfurtherandfurtherbehind,usuallyunknowingly.

Whentheyfinallylosttheirjobs,theyfoundthattheirskillsets,largelybasedonexperience,wereofminimalvaluetocurrentemployers.Andbecausecontinuouslearningandnewskilldevelopmentwerenotpartoftheirworldview,theysimplywenthomeandwatchedtelevision.Asaresult,theyoftenfoundthemselvesunemployedformonthsandevenyears.

Manypeopletoday,atallincomelevelsandinallcareercategories,areunawareofthispressingneedtocontinuallyupgradetheirskills.ButasPatRiley,thebasketballcoach,said,“Ifyou’renotgettingbetter,you’regettingworse.”

TheRaceIsOn

Noonestaysinthesameplaceforverylong.Ifyouarenotcontinuallyupgradingyourknowledgeandskills,youarenotstayingeven.Youareactuallyfallingfurtherandfurtherbehind,whilepeoplewhoareaggressiveaboutcontinuouslearningaremovingfurtherandfasterahead.

Mostpeopletodayarestuckinarut,andtheonlydifferencebetweenarutandagraveisthedepth.AsmotivationalspeakerJimRohnsaid,“Ifyou’restuckinarut,Ihopeawagonwheelcomesalongtomotivateyououtofit.”

TheThreeEnemies

Threeenemiesofchangeandflexibilitymustbecounteredhead-on.Thefirstandworstisthe“comfortzone.”Peoplestartdoingorworkingatsomethingandquicklybecomecomfortable.Theythenresistanychange,evenpositivechangethatrequiresthemtodosomethingnewordifferent.

Insteadoflearning,growing,andexpandingtheirenvelopeofpossibilities,theydigintheirheels,justifyandrationalizetheirresistancetochange,andoftensabotagethechangeeffortsofothers.

InWarrenBennis’sbookLeaders,hedescribeshowthetoppeopleinhisstudyresistedthepullofthecomfortzonebysettingbiggerandbiggergoalsforthemselvesandtheirorganizations,goalsthatwouldbeimpossibletoachievewithoutmajorchangesandimprovements.

InPeterDiamandis’s2015book,Bold,heurgesmoldbreakersandearthshakerstosetgoalstoachievetentimesoronehundredtimestheircurrentlevelsofsales,income,andprofitabilityintheyearsahead.Thissizeofgoal,whichseemsoverwhelmingatfirst,soonleadstoexpandedthinkingandnewideasto“gowherenomanhasevergonebefore”(StarTrek).

FEARHOLDSPEOPLEBACK

Thesecondmajorobstacletoflexibility,tochallengingandquestioningthestatusquo,isfearofallkinds,butespeciallythefearoffailure.“Whatifwetrysomethingnewanditdoesn’twork?”

AccordingtotheOctober2013HarvardBusinessReview,themajorobstaclestobusinessmodelinnovationarefearanduncertainty.Eightypercentofcorporateexecutivesrankbusinessmodelinnovationaheadofthedevelopmentofnewproductsandservicesintermsofimportance.Butthey

don’tknowhowtodoit,sotheyprocrastinateandhopethatthenextgenerationofleaderswillmakethechangesthatwillbenecessarytosurviveandthrive.

FEELINGUNABLETOCHANGE

Thethirdreasonthatpeoplefearandresistchangeis“learnedhelplessness.”Theindividualsresponsibleknowthatchangeisessential,buttheyfeelthattheyarehelpless,caughtupinthecomplexitiesofthecurrentsituationandunabletochange.

Learnedhelplessnessisexpressedinthewords“Ican’t”or“Wecan’t.”Whatthenfollowsisalitanyofexcusesintermsofnotenoughtime,notenoughmoney,notenoughavailabletalent,andotherexplanationsforwhychangeisnotpossiblethatinvolveanumberofexternalpressuresandinternallimitations.

ButasWinstonChurchillsaid,“Ifyoudon’tfightwhenyouhaveachanceofvictory,youwillsoonhavetofightwhenyouhavenochanceatall.”Theruleistochangewhenyoucan,notwhenyouhavetoorhavenootherchoice.

SomeoneshouldhavetoldthistotheexecutivesatBlockbuster,acompanythatdominatedthemarketforvideomoviestobeviewedathome.WhenNetflixcamealong,thepeopleatBlockbusterdismisseditasasmallcompanythatcouldneverchallengethedominanceofBlockbusterinthenationalmarket.Butcustomertasteshadchanged,andwithinafewyearsNetflixwasthebiggestplayerinthedeliveryofmovies,bothbymailandonline,andBlockbusterwasbankrupt.

OpenUpYourThinking

Thereareseveralpowerful,practicalthinkingtoolsthatyoucanusetounlockyourcreativity,expandyourthinking,andmoveyourselfoutofthecomfortzone.

Theall-aroundchampiontooltochangeyourperspectiveandtodevelophigherlevelsofflexibilityis“zero-basedthinking.”

Zero-basedthinkingcomesfromzero-basedaccounting.Inzero-basedaccounting,youchallengeeveryexpenseatthebeginningofeveryaccountingperiod.Youasknotwhetheryoushouldincreaseordecreaseaparticularexpensebutwhetherornotyoushouldbespendingmoneyinthisareaatall.

Inzero-basedthinking,youaskthebrutalquestion,“Isthereanythingthatwearedoingtodaythat,knowingwhatwenowknow,wewouldn’tstartupagainifwehadtodoitover?”

DoaKWINKAnalysis

ApplyaKWINK(KnowingWhatINowKnow)analysistoeverypartofyourbusinessandpersonallife.Isthereanythingthatyouaredoingtodaythatyouwouldn’tgetintoagain,ifyouhadtodoitover,knowingwhatyounowknow?

Howdoyouknowifyouaredealingwithazero-basedthinkingsituation?Simple—theanswerisstress!Ifthereissomethinginyourlifethatyouwouldn’tgetintoagaintoday,youwillcontinuallyexperiencestress,worry,anger,frustration,anddissatisfactioninthatareaorwithsomeperson.Thisnegativesituationoftenpermeatesyourconversation,distractsyouthroughouttheday,andkeepsyouawakeatnight.

StartwithYourRelationships

Inzero-basedthinking,startwithyourrelationshipsofallkinds.Isthereanypersoninyourbusinessorpersonallifethatyouwouldnotgetinvolvedwithagainifyouhadtodoitover?

Isthereanyoneinyourbusinesswhomyouwouldnothire,assignordelegatetasksto,promote,orevengotoworkfortodayknowingwhatyounowknow?

Ifthereissomeonewhomyouwouldnotgetinvolvedwithagaintoday,theonlyquestionis,“Howdoyouendthissituation,andhowfast?”

Canyouguesshowmanyofyourdecisionswillturnouttobewronginthefullnessoftime?AccordingtotheAmericanManagementAssociation,fully70percentofdecisionsmadeintheworldofwork,andprobablyinpersonallife,turnouttobewrongeventually.Theycanbealittlebitwrong,alotwrong,ortotallywrong.Todevelophighlevelsofflexibility,toperformatyourbest,youmustbepreparedtomakethethreestatementsofthesuperiorexecutive.

ADMITYOUARENOTPERFECT

“Iwaswrong.”Lookaroundyouatyoursituation,andespeciallyatthoseareasthatarecausingyoustress,dissatisfaction,orunhappiness,andbewillingtoadmitthatyouwerewrong.Whenyoumadethedecisionorgotintothesituation,itseemedliketherightthingtodo.Basedontheinformationyouhadatthetime,itwasquitelogical.But“theanswershavechanged.”

Youhavelearnedthingsthatyoudidnotknowbefore,andtheexternalsituationandrequirementshavechangedaswell.Whatseemedtobetheright

decisionwhenyoumadeithasturnedouttobethewrongdecisiontoday.Assoonasyouadmitthatyouwerewrongandtakeactiontocorrectthesituation,yourstressevaporates.

Sometimes,peoplethinkthatbyadmittingtheyarewrong,theyaredemonstratingweakness.Theythinkpeoplewillnotrespectthemiftheyadmitthatadecisiontheymadeanddefendedinthepastwaswrong.Butitisexactlytheopposite.Intimesofturbulenceandrapidchange,havingthecourageandcharactertoadmityouwerewrong,whenthemistakeisprobablycleartoeveryonearoundyou,actuallyincreasestheirrespectforyouandtheirwillingnesstobeinfluencedbyyouinthefuture.

Ontheotherhand,noonelooksmoreweakandfoolishthansomeonewhoisobviouslywrongbutrefusestoadmitit.

Here’saninterestingpoint.Whenyouidentifyasituationthatyouwouldnotgetintoagaintoday,knowingwhatyounowknow,itistoolatetosavethesituation,ortheperson.Itisover.Theonlyquestionnowis,“Howmuchtime,money,trouble,andpainareyougoingtoloseorsufferbeforeyouadmitthatyouwerewrongandtakewhateveractionisnecessarytorectifythesituation?”

ADMITYOUMADEAMISTAKE

“Imadeamistake.”Becauseofego,manypeoplefinditdifficulttoadmitthattheyhavemadeamistake,evenwhentheyobviouslyhave,anditiscleartoeveryonearoundthem.Don’tletthishappentoyou.

Becauseyouaregoingtobewrongandmakemistakesfully70percentofthetime,don’twaitforeveryoneelsetofigureitout.Instead,jumpaheadofthecurveandquicklyadmit,“Iwaswrong.Imadeamistake.”Andthenrectifythesituationasrapidlyasyoucan.

CHANGEYOURMIND

“Ichangedmymind.”Again,changingyourmindwhenyougetnewinformationisamarkofcourage,character,andflexibility,notofweakness.Evenifyouhavespenteighteenmonthsdevelopinganewbusinessorproductstrategy,ifyougetnewinformationthatinvalidatesyourkeyconclusions,bepreparedtochangeyourmind,toabandonthenow-obsoletestrategyinfavorofdoingsomethingnew,different,andmoreappropriatetothecurrentsituation.

Themorereadilyyoucansaythewords“Iwaswrong,Imadeamistake,Ichangedmymind,”thebetteryouwillthinkandthemorerespectedyouwillbe

byallthepeoplearoundyou.

ReevaluateYourBusinessandCareer

Thesecondareawhereyouapplyzero-basedthinkinghastodowitheveryaspectofyourbusinessandcareer,includingandespeciallyyourbusinessmodel.

Isthereanyproductorservicethat,knowingwhatyounowknow,youwouldnotbringtothecurrentmarket?Isthereanyprocess,method,orexpenseinyourbusinessthatyouwouldnotstartupagaintoday,knowingwhatyounowknow?Isthereanythinginyourcurrentstrategythat,knowingwhatyounowknow,youwouldnotgetintoagainifyouhadittodoover?

Isthereanypartofyourcareer—theworkyoudo,theactivitiesyouengagein—that,knowingwhatyounowknow,youwouldn’tgetintoagaintoday?Remember,itisquitecommonforpeopletohavemanydifferentjobs,indifferentcompaniesandindustries,usingdifferentskills,overthecourseofalifetime.Manypeopledecidetostartoverinanewfieldandlearnanentirelynewsetofskillswhentheeconomychanges.Couldthisapplytoyou?

Iftheanswerisyes,thenextquestionis,“HowdoIgetoutofthissituationordiscontinueit,andhowfast?”

EvaluateYourInvestments

Thethirdareaforzero-basedthinkinghastodowithinvestments,especiallythoseoftime,money,andemotion.

Inaccounting,thereisacategorycalledsunkcosts.Thisisanamountofmoneythathasbeenspentandisgoneforever.Itcannotberecouped.Itislikedroppingananviloffashipinthemiddleoftheocean;youcannevergetitback.Itisgone.Itisa“sunkcost.”

Itisamazinghowmanybusinessesandindividualsareconfusedinthisarea.Theyareconstantlytryingtorecoversunkcosts.Thisiscalled“throwinggoodmoneyafterbad”or“throwingmoneydownarathole.”

YourInvestmentIsGoneForever

Thisrefusaltoacceptthefactofasunkcostisespeciallytruewithregardtotime.Isthereanyareaofyourlifewhereyouhaveinvestedalargeamountof

time,inaproject,aservice,aperson,oreventhedevelopmentofaskillthatisnolongerhelpfulornecessary?Bepreparedtorecognizethatthispastinvestmentoftimehasnowbecomeasunkcost.Acceptit.Moveon.Anddon’tinvestanymoretimeinanareawhere,inyourheart,youknowitisnotthebestuseofyourtimeandeffort.

Thesecondareaofsunkcostshastodowithinvestments.Isthereanyfinancialinvestmentthat,knowingwhatyounowknow,youwouldnotmakeagaintodayifyouhadtodoitover?

Ifthereis,thenextquestionis,“HowdoIgetoutofthisinvestment,andhowfast?”

Itissadtoseehowmanypeopleandcompanieskeepinvestingmoneyinanareathatknowingwhattheynowknow,theywouldneverinvestinatalliftheyhadtodoitover.

ImagineStartingOverAgainToday

Thethirdareaofzero-basedthinkinghastodowithemotions.Accordingtopsychologists,peoplehatetolosetime,money,oremotionofanykind.Theyoftenhaveamentalblockaboutlosses,refusingtoadmitthemandattemptingtorecouptheminsomeway.

Throughoutyourlife,youwillinvestalotofemotioninpeople,projects,andsituations.Youwillputyourwholeheartintomakingthesituationorrelationshipwork.Butattheendoftheday,youwillhavetoadmitthatyouwerenotsuccessful.Yourinvestmentofemotionhasbeenlost.Itisgoneforever.Itcannotberetrievedorrecouped.Itisasunkcost.

Ittakestremendouscharactertofaceuptotherealityofafailedsituationorrelationshipandtoadmitthatyouwerewrong,youmadeamistake,andyou’vechangedyourmind.Butthemoreoftenyoupracticezero-basedthinking,themoreflexibleyoubecome.

TheBigPayoff

Hereisthegoodnews:Whenyoufinallyhavethecouragetoputanendtoazero-basedthinkingsituation,youwillhavethesamereactionthatpeoplehaveallovertheworld.First,youwillfeelagreatsenseofrelief,evenexhilaration,andliberation.Youwillfeelasthoughagreatweighthasbeenliftedoffyourshoulders.

Second,youwillaskyourself,“Whydidn’tIdothisalongtimeago?”

Theskillofzero-basedthinkingisabsolutelyessentialifyouwanttorealizeyourfullpotentialinyourworkandpersonallife.Andthemoreyoupracticeit,thebetteryougetatit.Soon,youwillbeabletosay,“ThereisnotasituationinmylifethatIwouldchangeorgetoutoftodayifIhadtodoitover.”

TheSevenRsofSuperiorThinking

Sometimes,thesimplestideascanjaryourthinkingandcauseyoutoseeyoursituationinacompletelydifferentway.Thekeyisforyoutoalwaysbeopentothepossibilitythatwhateveryouaredoing,youcouldbecompletelywrong.Therecouldbeacompletelydifferentandbetterwaytodoalmostanything,andthereusuallyis.

Thereareseventoolsyoucanusetoincreaseyourflexibilityandyourmentalagility.

1. Rethinking:Thisrequiresthatyoustoptheclock,takeatime-out,andstandbacktolookatyoursituationobjectively.Askyourselfthreequestions:

WhatamItryingtodo?HowamItryingtodoit?Couldtherebeabetterway?

Wheneveryouexperiencefrustrationorresistanceofanykindinyourattempttoachieveyourgoals,stepbackandaskyourselfthesethreequestions.Veryoftenyouwillfindthatwhatyouaretryingtodoisnotthecorrect

thingtodo,oritisnotasimportantasitusedtobe.Youmayfindthatthewayyouaretryingtodoitisnotworking.Andbyaskingiftherecouldbeabetterway,youopenyourmindtoaninfinitenumberofpossibilities,becausethereisalmostalwaysabetterway.

2. Reevaluating:Practicezero-basedthinking,andconsiderthepossibilitiesofdoingthingscompletelydifferently.Wheneveryouarenothappywithanongoingsituation,askyourself,“IfI

werenotnowinthissituation,knowingwhatInowknow,wouldIgetintoitagaintoday?”Iftheanswerisno,howdoyougetoutofit,andhowfast?

3. Reorganizing:Lookforwaystoincreasetheefficiencyandeffectivenessofyouroperationsbymovingpeopleandresourcesaroundandbydeployingthemindifferentways.

Whatareyourmostimportantgoalsinyourworkandbusinessrightnow?Havetheychanged?Whoareyourmostimportant,valuable,andproductivepeople?Howcanyoureorganizeyourworksothatyourbestandmostproductivepeoplearefocusedonyourmostimportantgoalsandgreatestopportunities?

4. Restructuring:Thisinvolvesmovingyourpeopleandresourcesintothe20percentofactivitiesthatcanaccountfor80percentofyourresults.

Whatarethe20percentofresultsthataccountfor80percentoftheincomeandprofitsofyourbusiness?Whatarethetop20percentofyouractivitiesthataccountfor80percentofyourtotalresults?Whoarethetop20percentofyourstaffwhoproduce80percentofthetotalresults?

Inbusiness,yourprimaryconcernshouldberevenuegeneration.Moveyourverybestpeopleintothoseareaswheretheycanhavethegreatestpositiveeffectongeneratingmorerevenueforyourcompany.

5. Reengineering:Continuallyseekwaystosimplifyyourworkandlifebydelegating,outsourcing,downsizing,oreliminatingcertainactivities.

Whatactivitiesorprocessescanyousimplifyandstreamlinesotheycanbedonefasterandwithlesstimeandmoney?Whatactivitiescanyoudelegatetoothersoroutsourcetospecialistcompanies?Whatactivitiescouldyoueliminatealtogetherwithnoreallossofproductivity,sales,orprofitability?

Eachtimeyouaskoneofthesequestions,youwillstimulateyourcreativityandgetanswersthatyoucanapplytostreamlineyourbusiness

andgetmoreandbetterresults,fasterandcheaper.6. Reinventing:Continuallyimaginewhatyouwoulddodifferentlyifyou

werestartingoveragaintoday.

Imaginestartingyourbusinessordepartmentoveragaintoday.Whatwouldyoudodifferently?Whatwouldyoudomoreof?Whatwouldyoudolessof?Whatwouldyoustartdoingthatyouarenotdoingrightnow?Whatwouldyoustopdoingaltogether?

Thesequestionswillgiveyouideasandinsightseverytimeyouaskthem.Whatshouldyoudomoreof,lessof,start,orstop?

7. Regainingcontrol:ThisrequiresthatyoutakespecificactioninyourworkandbusinessbasedonyouranswerstothepriorsixRs.

Whatoneactionareyougoingtotakeimmediatelyregardingyourownpersonalworkandactivities?Whatoneactionareyougoingtotakeimmediatelyregardingyourstaff?Whatoneactionareyougoingtotakeimmediatelyregardingthebusinessitself?

Ineachcase,imaginethatyouhavenolimits.Imaginethatyouhaveallthetimeandmoney,allthetalentsandabilities,allthefriendsandcontacts,andalltheresourcesyouneedtobe,do,orhaveanythinginyourbusinessorpersonallife.Yourmainjobistobecomeabsolutelyclearabouttherightthing,thebest

thing,todoandthentocommitwholeheartedlytothenewcourseofaction.

ACTIONEXERCISES

1. Examineyourpersonalandcorporatebusinessmodel.Askyourselfiftherecouldbeabetterwayforyoutogeneratesales,profitability,andpersonalincome.

2. ApplytheKWINKanalysistoeverypartofyourbusinessandpersonallife.“KnowingwhatInowknow,isthereanythingthatIamdoingthatIwouldnotgetintoagaintodayifIhadittodoover?”

3. Whatshouldyoudomoreof,lessof,start,orstopaltogethertogetdifferentandbetterresults?

8

CreativeThinkingVersusMechanicalThinking

Theimaginationisliterallytheworkshopwhereinarefashionedallplanscreatedbyman.—NAPOLEONHILL

CREATIVETHINKERSruletheworld!Theyarecontinuallyseekingfaster,better,andeasierwaystoaccomplishgoalsthatareimportanttootherpeople.TheypracticetheCANEIprinciple,whichstandsfor“ContinuousandNever-EndingImprovement.”

Theyareresponsibleforallofthegreatbreakthroughs,innovations,andprogressinhumanhistory.Theyknowthatsometimesonegoodideaisallittakestochangethecourseofabusinessoranindividuallife.

MechanicalThinking

Mechanicalthinking,ontheotherhand,tendstoberigidandinflexible.Itis“mywayorthehighway.”Mechanicalthinkingisrootedinfearsoffailureormakingamistakeandlosingtime,money,orboth.Itistriggeredbyfearsofcriticismordisapproval,tryingsomethingthatdoesn’twork.

Poorthinkersthinkintermsofblackandwhiteratherthanshadesofgray.Theythinkinextremesofyesversusno,upversusdown.Theythinkthereisonlyonewaywhenthereareusuallymanyways.Inthefaceofchangeandconfrontation,theydeveloppsychosclerosis,whichisdefinedasa“hardeningoftheattitudes.”

Theyarevictimsof“homeostasis,”astrivingforconstancy.Theyarestuckintheircomfortzones.Theyresentandfearanythingnewordifferent,evenanimprovementinconditions.Butthisisnotforyou.

YouAreaPotentialGenius

Youhavemorecreativepotentialthanyoucoulduseinahundredlifetimes.Themoreofyourcreativeabilityyouuse,themoreyoucanuse.Youactuallybecomemorecreativeeachtimeyoucomeupwithsomethingnew.Itissaidthateverychildisbornagenius,andthismeansyou,throughoutyourlifetime.

Itturnsoutthatcreativityisthesinglebestindicatororpredictorofsuccessinlifeandinwork.Themorecreativeyouare,themoreandbetterideasyouwillcomeupwithtoimproveyourlife,work,andeverythingaroundyou.Onegoodideacanbeenoughtochangetheentiredirectionofyourlife.

Howdoyourecognizecreativity?Creativepeoplearecurious.Theyaskalotofquestionsandareneversatisfied.Infact,youcanbecomemorecreativejustbyaskingmorequestionsaboutthethingsgoingonaroundyouandnotbeingcontentwithsuperficialanswers.

GeniusThroughouttheAges

Therearemanystudiesofthequalitiesofgeniusesthroughouttheages.ThefirstfacttheydiscoveredwasthatintelligencewasnotamatterofIQoracademicqualifications.Manyso-calledgeniuseshadaverageorslightlyabove-averageintelligence.Geniusorexcellentthinkingwasinsteadmoreamatterofattitudeandapproachtowardtheinevitablechallengesoflife.

Itappearsthatgeniusesdevelopthreequalitiesovertime.

KEEPANOPENMIND

First,theyapproacheveryproblemorsituationwithanopenmind,almostachildlikeattitudeofexplorationanddiscovery.Themoreopenyourmindistocompletelynewanddifferentapproachestoanysituationinyourlife,themorelikelyitisthatyouaregoingtogetinsightsandideasthatmoveyououtofyourcomfortzone—thatenableyoutothinkoutsidethebox.Theycontinuallyask“Why?”and“Whynot?”and“Whatif?”

Second,geniusescarefullyconsidereveryaspectofaproblem,refusingtojumptoconclusions,gatheringmoreandmoredatainstead.Theytestandvalidatetheirtentativeconclusionsateachstage.Theyavoidarushtojudgment.Theyarealwaysopentothepossibilitythattheycouldbewrong,orthattheirideaisnogood.

THEBESTSOLUTION

AlbertEinsteinwasonceasked,“Iftherewasamajoremergencyorpotentialdisasterthatwasgoingtodestroytheearthin60minutes,andyouwereaskedtofindasolution,whatwouldyoudo?”

Einsteinreplied,“Iwouldspendthefirst59minutesgatheringinformation,andthelastminutesolvingtheprobleminthebestpossibleway.”

Inbusinesstoday,especiallyinnewproductdevelopment,themoretimeyouspendworkingcloselywithcustomerstobesurethatyournewproductorserviceideaisexactlywhattheywant,need,andarewillingtopayfor,themorelikelyitisthatyouwillbesuccessfulinafast-changingandhighlycompetitivemarket.

THESYSTEMATICAPPROACH

Third,geniusesofallkindsuseasystematicapproachtoproblemsolvinganddecisionmaking.Accomplishedmathematicians,physicists,doctors,mechanics,andpeopleinotherprofessionsdonotthrowthemselvesataproblemlikeadogchasingapassingcar.Rather,theyfollowacarefullydesignedchecklistandworktheirwaythroughaproblem,stepbystep,towardaconclusion.

AtulGawande,inhisbookTheChecklistManifesto,tellsthestoryoftwoinvestmentexperts,bothsuccessful,butonefarmoresuccessfulthantheother.

Itturnedoutthattheybothhadmanyyearsofexperienceinevaluatingandmakingsubstantialinvestmentsforthemselvesandtheirclients.Butthemoresuccessfuladviserhaddevelopedachecklistofessentialquestionstoaskandteststoapplytoaninvestmentproposalbeforemakingadecision.

Theotheradviserusedmanyofthesametechniquesandtacticstoappraiseaninvestment,butheoperatedmorefromintuitionandexperience.Asaresult,heoftenlostmoneywhenheshouldn’thave.

HerewastheinterestingpointthatGawandemade.Thefirstadviserwasconsistentlymoresuccessfulthanthesecond.Butonvariousoccasions,hemademistakesandlostmoney.Thereasonwasinvariablythesame.Hehadneglectedtofollowhisownchecklist.Hehadmissedoneortwovitalpointsinhislistofimportantconsiderations.Whenhewentbacktofollowinghischecklistmeticulously,hisinvestmentrecordimprovedsignificantly.

TheSystematicProblem-SolvingMethod

Hereisastructured/unstructuredwayofproblemsolvinganddecisionmakingdevelopedbyexpertsandthinktanksovertheyears.IhavesynthesizedthebestideasIhavediscoveredintoasinglesimplemethodthatyoucanusefortherestofyourcareer.

STEPONE:Definetheproblemorgoalclearly,inwriting,onthepageinfrontofyou.Ifyouareworkingwithagroup,writeandrewritetheproblemorgoalonaflipchartorawhiteboarduntileveryoneagrees,“Yes.Thisisthecorrectdefinitionoftheproblem.”

Inmedicine,theysay,“Accuratediagnosisishalfthecure.”Inbusiness,developingthecorrectdefinitionoftheproblemoftenmakesthe

solutionappearobvious.STEPTWO:Onceyouhavedefinedtheproblemorgoalclearly,youask,

“Whatelseistheproblem?”Bewareofanyproblemforwhichthereisonlyonedefinition.Defineand

redefinetheproblemseveraldifferentwaystomakeitmoreamenabletothecorrectsolution.(Note:Itmaybenotaproblematallbutratheranopportunity.)

Theworstthingyoucandoistocomeupwithagreatsolutiontothewrongproblemortoaproblemthatdoesnotexist.

ProductFailureRates

Fully80percentofnewproductsandservicesfailwithintwelvemonths.Theprimaryreasonforthisisthatcompaniesdevelopaproductthatsolvesaproblemthatcustomersdon’thave.

Itislikethestoryofthedogfoodcompanythatinvestedmanymillionsofdollarsdevelopingtheperfectdogfood—nutritionallybalancedineveryway.Buttheproductfailedinthemarketplace.Whentheproductdeveloperswereaskedwhathadhappened,theyreplied,“Theproblemwasthatthedogshatedit.”

Whateverdefinitionoftheproblemthatyousettleonisgoingtodeterminethedirectionofthesolution.Ifyourproblemdefinitionisincorrect,yoursolution,howeverbrilliant,won’twork.

SalesImprovementProcess

Inmyworkwithsalesorganizations,Itakethemthroughasystematicprocessofcreativethinking.Inalmosteverycase,thenumberoneproblemthatabusinessfacesislowsales.SoIstartoffwithaquestion,“Whatistheproblem?”

Thefirstdefinitionoftheproblemisusually“Oursalesaretoolow.”

Whatelseistheproblem?Wearenotattractingenoughnewcustomers.

Whatelseistheproblem?Thecustomersthatwedoattractarenotbuyingenough.

Whatelseistheproblem?Wearenotconvertingenoughofourprospectsintopayingcustomers.

Whatelseistheproblem?Ouradvertisingandpromotionarenotattractingenoughnewcustomers.

Whatelseistheproblem?Ourcustomersarenotbuyingoftenenough.

Whatelseistheproblem?Ourcustomersarebuyingtoomuchfromourcompetitors.

Keepaskingthe“whatelse”questionuntilyoufindthecorrectdefinitionoftheproblem.

TheDefinitionDeterminestheSolution

Whicheveroftheseanswersthatyoudecideupon—ifitisthecorrectproblem—requiresadifferent,andsometimesacompletelydifferent,solution.Thisiswhyitissoimportantthatyoutestandvalidateyouranswertobesureyouareworkingontherightprobleminthefirstplace.

STEPTHREE:Youask,“Whatisthesolutiontoourproblem?”Whateveransweryoucomeupwith,youthenask,“Whatelseisthesolutiontoourproblem?”

Bewareofaproblemforwhichthereisonlyonesolution.Thereisadirectrelationshipbetweenthenumberofpossiblesolutionsyoudevelopandthequalityofthefinalsolutionyousettleupon.Veryoften,twounrealisticideascombinedcouldturnouttobeonebrilliantideathatchangesthedirectionofyourbusiness.

STEPFOUR:Onceyouhavedevelopedawiderangeofpossiblesolutions,youmustnarrowthemdownandmakeadecision.Inmostcases,anydecisionis

betterthannodecisionatall.Ifyoucannotmakeadecisionimmediately,setadeadlinebywhichyouwillmakeyourdecisionandtakeaction.

SteveJobsoncesaid,“Creativeideascomefromconnectingthedotsinadifferentway.”Hereisthekeyusedbysuperiorthinkerseverywhere:Ifyouarestrugglingwithadecision,collectmoredots.Getmoreinformation.Hireaconsultantwhospecializesinthisarea.Don’tbecheapincollectingthebestinformationpossible.Oneneworunconsideredideacanmakeorsaveyouafortune.

STEPFIVE:Determinehowyouwillmeasurethesuccessofthisdecision.Setclearmeasuresandbenchmarks.Quantifyyourdesiredresults.Theruleisthis:“Ifyouwanttosucceedinbusiness,setmeasuresforeverything.Ifyouwanttogetrich,setfinancialmeasuresforeverything.”

Remember,ifyoucan’tmeasureit,youcan’tmanageit.Andwhatgetsmeasuredgetsdone.

STEPSIX:Assignresponsibilityfortheproject,task,orsubtasktoaspecificpersonorpersons.

Everyproduct,service,orprojectneedsachampion,someonewhoiscompletelyinchargeoftheprojectandwhosepersonalsuccess,pay,andpromotionaredeterminedorstronglyaffectedbytheresults.

Amajormistakethatsmallandlargecompaniesmakeisthattheyagreeonanewproductorserviceidea,oronaprojectofsomekind,andtheneveryonegoesbacktowork.Nooneisassignedspecificresponsibilityforthisproject.Itthenbecomesan“orphanproject”inthecompany—somethingthatbelongstoeveryoneandtonoone.Don’tletthishappeninyourbusiness.

STEPSEVEN:Setadeadlineandsub-deadlinesforcompletion.Themoreimportantthepotentialresult,themoreoftenandmoreaccuratelyyoumustmanageandmeasureprogress.Inspectwhatyouexpect.Whatgetsinspectedgetsdone.

STEPEIGHT:DevelopaPlanB,afallbackplanoranalternativeincaseyourfirstsolutiondoesnotworkforanyreason.Filloutthe“DisasterReport.”Ask,“Whatistheworstpossiblethingthatcouldhappeninthissituation?”

Theworstpossibleoutcomeisthatitcouldfailcompletely,andallthetimeandmoneyinvestedwillbelost.

Howcouldyouminimizethepossibilitiesoffailure?Howcouldyoumaximizethepossibilitiesofsuccess?Whatwillyoudoifyoursolutiondoesn’twork?

DevelopaFallbackPlan

Greatgeneralsplantowineverybattle,buttheypreparefordefeatifitoccurs.Theysetasidereservesofmenandammunition.Theydevelopacontingencyorfallbackplan.Theyknowthatanorderlyretreatisbetterthanacompleterout.

Never“bettheranch”onanewcourseofaction.Onlytakecalculatedrisks—risksthatyoucanbouncebackfromiftheyfailcompletely.

Hopeisnotastrategy;itisaformulafordisaster.Inbusiness,thenewproductideaof“builditandtheywillcome”isalmostasurefirerecipeforfailure.

STEPNINE:Takeactiononyouridea.Movefast.Developasenseofurgency.Dosomething.Doanything.Butgetonwithit,asquicklyaspossible.

GeneralGeorgePattonsaid,“Agoodplanviolentlyexecutednowisbetterthanaperfectplannextweek.”

Applythissystematicmethodofproblemsolvingtoeachproblemorobstacleyourbusinessfaces,discipliningyourselftofollowtherecipeforsuperiorthinking.Youwillbehappilysurprisedattheresult.

Solution-FocusedThinkingVersusProblem-FocusedThinking

Thetruemarkofyourintelligenceandyourcreativityisyourabilitytosolveproblemsandmakedecisions.Whatevertitleiswrittenonyourbusinesscard,yourtruejobdescriptionis“problemsolver.”Fromthetimeyoustartworkinthemorninguntilthetimeyouquitfortheday,andafterward,youaresolvingproblems,smallandlarge,alldaylong.

GeneralColinPowellsaid,“Leadershipistheabilitytosolveproblems.”Successistheabilitytosolveproblemsaswell.Agoaloranobjective

unachieved,inanyarea,ismerelyaproblemunsolved.Thisiswhyasystematicapproachtoproblemsolving,onethatworksatahigherlevelandmoreconsistently,isabsolutelyvitalforyoutoachievethemaximumsuccessthatispossibleforyou.

ThinkAboutSolutions

Asithappens,successfulpeoplethinkaboutsolutionsmostofthetime.Unsuccessfulpeoplethinkaboutproblemsmostofthetime.Successfulpeoplethinkabouthowtosolvetheproblemorremovetheobstacleandwhatactionscanbetakenimmediatelytoimprovethesituation.

Unsuccessfulpeoplethinkabouttheproblemandwhoistoblame.Theyallowthemselvestobecomeangryandupsetaboutaproblemthatoccursoran

obstaclethatarises.Thistriggersnegativethinking,anger,andthesearchfortheguiltyparty—“Whodidit?”Butitdoesnothingtohelpthemfindthesolution.

UnlockYourCreativePowers

Therearethreekeystounlockingyourcreativepowersthatwehavespokenaboutbefore.Theyareclarity,focus,andconcentration.

First,youmustbeclearaboutthegoalbutflexibleabouttheprocessofachievingit.Keepanopenmind.Bewillingtoconsideravarietyofdifferentwaystoachievethesameresult.

Second,focus.Bringallofyourbrainpower,andthatofothers,tofocuslikealaserbeamonasingleproblem,obstacle,ordifficulty,withoutdiversionordistraction.Stayononesubjectatatime.

Third,concentration.Putasideeverythingelse,andconcentrate100percentuntilyouhavesolvedyourbiggestproblemorachievedyourmostimportantgoal.

JimCollins,inhisbookGoodtoGreat,tellsthestoryofthefoxandthehedgehog,whichcomesfromanessaybyIsaiahBerlin.Hesaysthatthefoxisverycleverandknowsmanythings.Butthehedgehogismoresuccessfulbecauseheknowsonebigthing.

Clarity,focus,andconcentrationenableyoutobringallyourmentalpowerstobearonsolvingonebigproblemorachievingonebiggoal.

TheAttractionofDistraction

Inourmodernworldofcomputersande-mail,perhapsthegreatestenemyisthe“attractionofdistraction,”chasingaftertheshinyobjectsofimmediatestimulus—e-mail,textmessages,phonecalls,andsocialmedia—allofwhichcauseyourmindtoscatteranddisruptyourabilitytofocusandconcentrate.

AccordingtoUSAToday,continuouslyrespondingtoelectronicinterruptions,especiallye-mailandtextmessages,burnsupyourbrainfuel,glucose,atarapidrate.Theaverageadultcheckshisorhere-mailalldaylongandisconstantlydistracted,likeanattentiondeficitdisorderdog,bysignalsandalarmsone-mailandsmartphones.

Asaresult,theaveragee-mail-addictedemployeelosestenfullIQpointseachday,becomingdumberbythehour.Bytheendoftheday,manypeopleareburnedout,unabletoconcentrateormakeeventhesimplestofdecisions.Andtheyarefurtherandfurtherbehindontheirkeytasks.

MultitaskingVersusTaskSwitching

Constantlyrespondingtoe-mails,textmessages,andphonecallsforcestheindividualtoengageinwhatiscalledmultitasking.However,thisismorerightlydefinedastaskswitching.Youarenotdoingseveraltasks;instead,youareswitchingbackandforth,fromonetasktoanotherandthenbackagain.Accordingtoonestudy,ittakesyouaboutseventeenminutesafteryouhavebrokenoffatasktorespondtoanincomingmessageforyoutogetback“ontask”again.

Throughouttheday,yourattentionswitchesbackandforth,likeawindshieldwiper,seldomcompletinganythingofvalue.WhenyouaddinsocialmediaandtheobsessionthatmanypeoplehavewithcheckingFacebook,Twitter,andLinkedIn,youhaveaformulaforcareerdisaster.Thisiswhytheysay,“Socialnetworkingissocialnotworking.”

Thesolutionissimple.Leavethingsoff.Checkyoure-mailtwiceaday,at11:00a.m.andat3:00p.m.Otherthanthat,turneverythingoffsothatyoucandedicateyourselfsingle-mindedlytothetaskathand.

ThePrincipleofConstraints

Thisisoneofthebestcreativethinkingtoolsofall.ThePrincipleofConstraintssaysthatbetweenyouandanygoalthereisaconstraintthatdetermineshowfastyouachievethatgoal.

Sometimesthisiscalledthebottleneck.Sometimesitisreferredtoasthechokepoint.AndrewGrove,theformerCEOofIntel,referredtothemainconstraintholdingyoubackasthe“limitingfactor”inanyproductionprocess.

Whatisyourmajorgoaltoday,andwhatistheconstraintthatsetsthespeedatwhichyouachieveit?

Torephrasethisquestion,“Whyaren’tyoualreadyatyourgoal?”Ifyourgoalistoincreaseyoursalesandprofitabilityby50percent,why

aren’tyoursalesandprofitabilityalready50percenthigher?Ifyourgoalistoloseweight,whyaren’tyoualreadyatyouridealweight?Whenyouaskthisquestion,veryoftentheansweryoucomeupwithistheconstraintthatisholdingyouback.Often,whenyouaskandanswerthisquestion,whatwillpopintoyourmindwillbeyourfavoriteexcuses,thereasonsthatyoumostcommonlygivefornonachievementinaparticulararea.

IdentifytheLimitingFactor

Ineachsituation,yourfirstjobistoidentifythislimitingfactorandthenfocussingle-mindedlyonalleviatingit.Thiswayofthinkingandactingcanmoveyoutowardyourgoalsfasterthanalmostanythingelseyoucando.

The80/20ruleappliestoconstraintsinyourpersonalandbusinesslife.Fully80percentofthefactorsthatareholdingyoubackfromachievingyourmostimportantgoalsarewithinyourselforwithinyourbusiness.Only20percentareontheoutside,externaltoyouandyourbusiness.

Whenyoubeginidentifyingandremovingconstraints,alwaysstartwithyourself.Askthekeyquestion,“Whatisitinme(orinmybusiness)thatisholdingmebackfromachievingmygoal?”

Remember,thenaturaltendencyofmostpeopleistoblametheirproblemsonexternalforcesandotherpeople.Thehallmarkofsuperiorthinkersisthattheyacceptcompleteresponsibilityforanyproblemordifficultyandthentheylookintothemselvesforwhatissettingthespeedatwhichtheyachievethegoaltheydesire.

What-IfThinking

Oneofthemostpowerfulquestionsyoucanaskintriggeringcreativityis,“Whatif?”Eachtimeyouaskthisquestion,youbreakthebondsoflimitedthinkingthatmaykeepyouworkinginanarrowarea,andyouopenyourmindtomoreandmorepossibilities.

What-ifthinkingisconsideredthebreakthroughconceptthatmadeFederalExpressoneofthemostsuccessfulcompaniesintheworld.Itstartedbyasking,“Whatifitwaspossibletodeliveraletterovernight,anywhereinthecountry?”

WhenFredSmith,founder,chairman,president,andCEOofFedEx,suggestedthisideainanundergraduatetermpaperatYale,hisprofessorgavehimaC,sayingthattheideawasnotveryrealistic.Atthattime,first-classmailintheUnitedStatestookanywherefromthreetofivedays,andsometimeslonger,toreachitsdestination.Theideaofovernightmaildeliveryseemedhighlyimprobable.

BreaktheBarriers

Bycontinuallyasking“Whatif?”FredSmithandtheexecutivesofFedExwereabletodevelopcreativeideasthatnotonlyachievedthegoalbutledtooneofthelargestandmostsuccessfulcompaniesintheworld.

“Whatifitwaspossibletoputthekeyboardonthescreenofacellphone?”(Apple,nowthelargestcompanyintheworld.)

“Whatifwecouldsellanddeliveralmostanybookbye-mailanddirecthomedelivery?”(Amazon.com,nowthebiggestvendorofbooksintheworld.)

“Whatifwecouldputamanonthemoonandbringhimsafelybacktoearth?”(JohnF.Kennedy—1962.)

WhenPresidentJohnF.KennedyaskedthescientistinchargeoftheAmericanspaceprogram,WernhervonBraun,whatitwouldtaketoputamanonthemoonandbringhimbacksafely,vonBraunrepliedsimply,“Thewilltodoit.”

Inmanysituations,inyourbusinessandpersonallife,whatismostrequiredforsuccessissimply“thewilltodoit.”

MyfriendJoelWeldonwasfamousforhistalk“SuccessComesinCans,NotinCannots.”Itisthesamewithyou.

TheProcessofInnovation

ThephilosophyofeverysuccessfulbusinessandsuccessfulexecutiveisCANEI,which,assaidabove,standsfor“ContinuousandNever-EndingImprovement.”

Resolvetomoveboldlyoutofyourcomfortzone.Continuallysearchfornewer,better,faster,andcheaperwaystoachieveyourgoalsandtomoveahead.Bepreparedtofailoverandoveragainwhenyouaredevelopingorintroducingnewproducts,services,methods,orstrategies.Nothingeverworksoutthewayyouthinkitwill.Youwillexperienceconstantfrustrations,difficulties,setbacks,andtemporaryfailuresonthewaytosuccess.

ThomasJ.WatsonSr.,thefounderofIBM,wasonceaskedhowtosucceedfaster.Hereplied,“Ifyouwanttosucceedfaster,youmustdoubleyourrateoffailure.Successliesonthefarsideoffailure.”

Infact,thereisnosuchthingasfailure.Thereisonlyfeedback.Difficultiescomenottoobstructbuttoinstruct.Theformulahasalwaysbeen“Try,tryagain,andthentrysomethingelse.”

Yourabilitytosolveproblems,makedecisions,andfindcreative,innovativewaystogrowyourbusiness,increaseyoursales,andboostyourprofitsistheultimatekeytoyoursuccess.

ACTIONEXERCISES

1. Selectoneproblemthatyouoryourbusinessiswrestlingwithtodayandputitthroughthesystematicmethodofproblemsolving.Itcouldchangeyourfuture.

2. Identifyonegoalthatyouhaveanddeterminethebiggestconstraint,thelimitingfactorthatsetsthespeedatwhichyouachievethatgoal.Whatcouldyoudotoalleviatethisconstraint?

3. Selectoneproductorserviceyouofferanddevelopasmanywaysaspossibletomakeitbetter,faster,orcheaperforyourcustomers.

9

EntrepreneurialThinkingVersusCorporateThinking

Betruetothebestyouknow.Thisisyourhighideal.Ifyoudoyourbest,youcannotdomore.—H.W.DRESSER

ALLPEOPLEWANTtoachievethehighestpossibleleveloffinancialsuccessinthecourseoftheircareers.AccordingtoThomasStanley,authorofTheMillionaireNextDoor,fully80percentofself-mademillionairesareentrepreneurs.Theyearnedtheirfortunesinonelifetimebystartingandbuildingtheirownbusiness,byproducingandsellingsomethingtosomeone.Theythoughtandactedlikeentrepreneursmostofthetime.

AccordingtotheMarch2015Forbesmagazine,thereare1,826billionairesintheworldtoday,66percentofwhomareself-made.Theystartedasentrepreneurswithnothingandbuilttheirfortunesfromthegroundupbycreatingandsellingproductsandservicesthatpeoplewantedandwerewillingtobuyandpayfor.

ThinkAboutCustomers

Entrepreneurialthinkingmeansfocusingonthecustomersatalltimes,thinkingaboutthecustomerscontinually.

TomPeterswroteinthebookInSearchofExcellencethatthesinglemostimportantqualityofsuccessfulbusinesseswas“anobsessionwithcustomerservice.”

Notlongago,Ispentadaywiththepresidentofa$2billioncompanythathehadstartedathiskitchentable.WhenIaskedhimwhatpositionhesawhimselfashavinginhisbusiness,heimmediatelyreplied,“ChiefSalesOfficer.”Hesaid,

“Thiswasmypositionwhenwestarted,anditisstillmypositiontoday.Ithinkaboutsalesallthetime.”

CorporateThinking

Corporatethinkingisdifferentfromentrepreneurialthinking.Companypeople,whetheremployees,managers,executives,ortechnicians,viewcustomerseitherwithdisinterestorasproblemswhoarealwayscomplainingorrequestingsomethingnewordifferent.Customersareoftenseenasfliesthathavetobeswattedandbrushedaway.

Corporatethinkersarepreoccupiedwithdoingtheirjobs,pleasingtheirsuperiors,followingtherules,anddoingtheminimumnecessarytoavoidbeingfiredorlaidoff.Employeeswhoarecorporatetypesusethepronouns“them,they,andtheir”todescribethecompanyandthepeopleincharge.

Theyfeelthatwhateverhappensinthecompanyhaslittletodowiththempersonally.Theysay,“Ajobisajob.”Asonecorporatetypetoldmesometimeago,“WhenIgotowork,Ithinkaboutmyjob,butwhenIcomehome,Idon’tthinkaboutmyjoborcompanyatall.”

LackofEngagement

Manyresearchersconcludethatmorethan60percentofemployeesatlargeandsmallcompaniesare“disengaged.”Theyfeelnodeepcommitmentorloyaltytothecompany.Theyarejustgoingthroughthemotionsofwork,thinkingaboutdoingsomethingelse.Theycheckthewantadsonaregularbasis,posttheirrésumésandqualificationsonCraigslist,LinkedIn,andotherWebsites,andarecontinuallylookingforsomethingelsetodo.

Corporatetypescometoworkatthelastminute,takeeveryminuteofcoffeebreaksandlunches,andspendasmuchas50percentoftheirtimechitchattingwithco-workers,checkingtheire-mail,anddoingthingsofnoorlowvaluetotheircompany.

CommitmentIstheKey

Entrepreneurialthinkersaredifferent.Theyarecommittedtothesuccessofthecompany.Theyseethemselvesasself-employedandactasiftheyownedtheircompaniespersonally.

Theyusewordslike“we,”“mine,”and“our”whentheyrefertotheircompanyandtotheirproductsandservices.Aboveall,theyacceptandtakeonhighlevelsofresponsibilityforresults.

Entrepreneurialthinkersarealwaysvolunteeringformoreresponsibility.Theycontinuallythinkaboutmakingagreatercontribution.Theyarecontinuallyupgradingtheirskills,learningnewthings,andseekingwaystobecomemorevaluabletotheircompanies.

Aboveall,entrepreneurialthinkerssearchforwaystoincreasethesalesandprofitabilityoftheircompanies.

Entrepreneurialthinkingiscustomer-centric,customer-focusedthinking.Entrepreneurialthinkersthinkaboutcustomersallthetime.

SalesAreCentral

Aswesaidinapreviouschapter,thenumberonereasonforbusinesssuccessishighsales.Thenumberonereasonforbusinessfailureislowsales.Allelseiscommentary.

ThekeytobusinesssuccessisSMS,whichstandsfor“SellMoreStuff.”Thisiswhattheentrepreneurialthinkerfocusesonmostofthetime.Howcanwesellmorestuff?

Successfulbusinesspeoplehavecertainqualities,characteristics,anddisciplinesthatenablethemtoachievefarmorethantheaverageperson.

Thereareseveralwaysforyoutodevelopthequalitiesofentrepreneurialthinkingandtomakeagreatercontributiontothesalesandprofitabilityofyourorganization.Rememberthethreekeys:clarity,focus,andconcentration.

AsktheBasicQuestions

Therearebasicbusinessquestionsthatyouneedtoaskandanswerallthetime,especiallywhenyoufacerapidchangeinknowledge,technology,andcompetition.

First,whatbusinessareyoureallyin?Defineyourbusinessintermsofhowyouserveyourcustomers,theimprovementsortransformationsyourproductsbringaboutintheirlivesandwork.

Corporatethinkersseetheirbusinessesasorganizationsthatproduceandsellproductsandservices.Entrepreneurialthinkersseetheirbusinessmissionasenhancingandenrichingthelivesoftheircustomers.

Trytodescribeyourbusinessintermsofthepositivechangeorimprovementyourproductsorservicesmakeinyourcustomers’liveswithoutmentioningyourcompany,products,orservices.Thiscanbearealchallengethefirsttimeyoutryit.

ThinkLikeaCustomer

Thecorporatetypesays,“Isellcars.”Theentrepreneursays,“Ienablepeopletodrivewherevertheywantin

comfortandsafety.”Youwillknowwhenyouaredescribingyourproductorserviceintermsof

thejobthatitdoesforyourcustomers,theproblemsthatitsolves,andthebenefitsthatyourcustomersenjoy,becauseyouwilltriggertheresponse“Howdoyoudothat?”or“Iwantthat!”or“That’sforme!”

Whoisyouridealcustomer,theperfectpersonforwhatyousell?Thisisadescriptionofthedemographicsandpsychographicsofthetypeofpersonwhomostappreciatesandvaluesthespecialfeatures,benefits,andresultsoftheproductorservicethatyouoffer.

Whatdoesyouridealcustomerconsidervaluable?Whatissoimportanttohimorherthatyoucanprovidethatmakesyourpricesseemunimportant?

Themainreasonthatbusinessesfailisthatthereislittleornodemandfortheirproduct.Peopledon’tvalueitorwantitandhavenointerestinbuyingit.

YourAreaofExcellence

Whatisitthatyoudoespeciallywell?Whatisyourareaofexcellenceorsuperiorityincomparisontoyourcompetitorsrelativetowhatyouridealcustomerwants,needs,andiswillingtopayfor?

Allcompanies,products,andservicesmusthaveacompetitive,comparativeadvantageovertheircompetitorsthatmakesthemthebestchoiceandideallythe“only”choiceintheirmarket.Whatisyours?Whatcoulditbe?

JackWelchsaid,“Ifyoudon’thavecompetitiveadvantage,don’tcompete.”HeisfamousforhisrulethatGeneralElectricwouldbenumberoneornumbertwoineverymarketitwasin,oritwouldabandonthatmarketandconcentrateitseffortssomewhereelse.

Foracompanytobesuccessful,itmustdominateamarketniche.Inatleastonearea,itmustberecognizedbycustomersinthemarketplaceasbeing“thebest”forthatparticularcustomer.

Inwhatareasdoyouorcouldyoudominateyourmarket?Whatwouldyouhavetodomoreorlessof?Whatwouldyouhavetostartorstopdoingaltogether?

PeterDrucker,anadvisertoJackWelch,said,“Ifyoudon’thaveaclearcompetitiveadvantage,developone.”

Entrepreneurialthinkingatitscoreisfocusedondevelopingandmaintainingameaningfulcompetitiveadvantageincompetitivemarkets.

YourBusinessModel

Today,theentrepreneurialfocusismoreandmoreonthebusinessmodel,thecomplexstrategythatyourcompanyusestoproduce,sell,anddeliveryourproductorservicetomoreandmorecustomersinaprofitableandcost-effectiveway.Whatisyours?

AccordingtoGeoffreyColvinofFortunemagazine,manyifnotmostcompaniesareoperatingonanoldbusinessmodel,onethatispartiallyortotallyobsolete.

Howdoyouknowifyouhavethecorrectbusinessmodelforyourbusiness?Theeasiestmeasureisthatyoursalesandprofitabilityareincreasingsteadilyandpredictably.

Ifyoursalesareerraticorinconsistent,haveleveledoff,or,evenworse,aredeclining,itcouldbethatyourbusinessmodelnolongerworks.Ifthisisthecase,andyoudonotchangeyourbusinessmodel,theendisinsight.

ThinkingAboutYourBusiness

Entrepreneurialthinkingrequiresthatyoucontinuallyreviewandevaluatetheessentialelementsofyourbusinessmodel.

1. Whatvaluedoesyourproductoffer?Whatjobdoesyourproductdoforyourcustomer?Whatproblemdoesitsolve?Whatbenefitsdoesitdeliver?Whatpaindoesittakeaway?Whatgoalsdoesitenableyourcustomerstoachieve?Andespecially,howimportantareyourkeybenefitstoyourcustomers?Yourabilitytoaskandanswerthesequestionsaccuratelywilllargely

determinethefutureofyourbusiness.

2. Whoisyourcustomer?Whoarethecustomerswhocanmostbenefitfromtheproductsorservicesyouoffer?Whataretheirdemographics?Whataretheirages,incomes,educationlevels,genders,occupations,andtypeoffamilyformation?Whataretheirpsychographics?Whataretheirhopes,dreams,fears,

ambitions,andaspirationsrelativetowhatyousell?Especially,whataretheirethnographics?Howdotheyuseyourproductor

service?Whatroledoesitplayintheirlivesorwork?Howimportantisittothemincomparisonwithotherthings?

3. Whatarethemosteffectivewaysthatyoucanmarket(attractnewcustomers),sell(convertthemintobuyers),anddistribute(getyourproductintothehandsofyourcustomers)?Howcouldyouattractmoreandbetter-payingcustomers?Howcouldyou

sellfasterandmoreeffectivelytotheprospectsyouattract?Howcouldyoudistributeyourproductfasterandmoreefficiently?(ThinkAmazon.com!)Theruleisthatwhateveryouaredoingtoday,youwillhavetobemuch,

muchbetterayearfromnowjusttostayeveninyourcurrentmarket.4. Howdoyougivesuchgoodcustomerservicethatyourhappycustomersbuy

fromyouagainandagainandtellotherstobuyfromyouaswell?5. Whatisthecoststructureofyourbusiness,andhowcouldyouchangeitto

achievegreaterprofitability?Howcouldyououtsource,downsize,oreliminatecertainactivitiessothat

youcanofferthesamehighlevelofqualitybutatalowercostofoperations?

ContinuetoQuestion

Entrepreneursinalltypesofbusinessesthinkaboutthesecriticalfactorsallthetime.Theyarealwayswillingtoconsiderthepossibilitythattheycouldbewrongorthattherearebetterwaystogetresultsinoneormoreoftheseareas.

Entrepreneurspracticezero-basedthinkingcontinuallyineveryarea.Theyask,“Isthereanythingthatwearedoingthat,knowingwhatwenowknow,wewouldn’tgetintoorstartuptoday?”

Entrepreneursaremoreconcernedwithwhat’srightratherthanwithwho’sright.Theykeeptheiregosoutofthediscussion.

Entrepreneursarewillingtoadmit,“Icouldbewrong.”Entrepreneursopenlyadmit,“Imadeamistake,”andthentheygetbusy

correctingthemistakeasquicklyaspossible,ratherthantryingtobluff,bluster,

stonewall,orhopethatitwillgoaway.Withnewinformation,entrepreneursreadilysay,“I’vechangedmymind.”

Theyquicklyembracenewideasandmethodstogetbetterresults,nomatterthesource.

CustomerFocus

Entrepreneurialthinkingrequiresthatyouthinkaboutthecustomerallthetime.Youcontinuallyseeknew,different,better,faster,andcheaperwaystoservecustomersandgivethemmoreandmoreofwhattheyreallywantandneed.

Yourabilitytothinklikeanentrepreneurratherthananemployeewilldomoretoliberateyourfullpotentialinyourcareerthananyothersinglefactor.Itmightevenmakeyourich.

ACTIONEXERCISES

1. Defineyourperfectcustomerclearly.Howcouldyouservehimorherbetterthanyourcompetitors?

2. Determineyourvalueoffering,theoneortwoqualitiesofyourproductsorservicesthatmakethemsuperiortothoseofyourcompetitors.

3. Examineyourbusinessmodeltobesurethatthewayyouaregeneratingsalesandprofitabilitytodayisthebestandmostefficientwaytodoit.

10

RichThinkingVersusPoorThinking

Thoughtistheoriginalsourceofallwealth,allsuccess,allmaterialgain,allgreatdiscoveriesandinventions,andofallachievement.

—CLAUDEM.BRISTOL

THEREHAVENEVERBEENmoreopportunitiesforyoutobecomewealthy,andmoredifferentwaystoachieveit,thanexisttoday.Morepeoplearestartingmorebusinessesinmoredifferentindustriesthaneverbefore.Moreknowledge,information,andtechnologyarecreatingmoreproductsandservicesthatpeoplewant,need,andarewillingtopayfor.Onenewideaisallyouneedtostartafortune.

Intheyear1900,therewere5,000millionairesinAmerica,afteralmosttwohundredyearsofeconomicdevelopmentandgrowth.Bytheyear1980,therewere1millionmillionairesinAmerica.In2015,therearemorethan10millionmillionairesand1,826billionaires,mostofwhomstartedwithnothingandearnedalltheirmoneyinonelifetime.Andwithinreason,socanyou.

AsWithin,SoWithout

TheLawofCorrespondenceworksforeveryoneatalltimesunderallcircumstances.Thislawsaysthatyourouterworldwillbeareflectionofyourinnerworld.Everythingmovesfromwithintowithout.Youcannotaccomplishsomethingontheoutsideuntilyoufirstaccomplishitontheinside.Tobewealthyontheoutside,youmustthinklikearichpersonontheinside.Thereisnootherway.

Poorpeoplethinklikepoorpeople.Theyhaveself-limitingbeliefsthatholdthembackandstopthemfromeventrying.Inastudycompletedafewyearsago

entitledOneHundredMillionMillionaires,theauthorsdemonstratedthatifyousimplysaved$100permonththroughoutyourworkinglifetime,investedit,andletitgrowwithcompoundinterest,itwouldamountto$1millionbythetimeyouretired.Whydoesn’teveryonedothis?Poorthinking!

TonyRobbins,inhis2014book,Money:MastertheGame,emphasizeswhatEinsteinsaid:“Compoundingisthemostpowerfulforceintheuniverse.”

Afterextensiveinterviewswithfiftyoftherichestpeopleintheworld,Robbinsconcludedthatalmostanyonecanstartsmall,saveandinvestregularly,usethemiracleofcompoundinterest,andeventuallybecomefinanciallyindependent,ifnotwealthy.Thissimplemethodhasworkedforalmosteveryoneatalltimesthroughouthistory.Anditcanworkforyou.

Self-MadeMillionaires

Someyearsago,Iwasaskedtogiveatalkonself-mademillionairestoalargegroupcomposedofbusinessownersfromalloverthecountry.Thisinvitationforcedmetodosomeseriousthinking.Thisthinkingchangedmylife.

FromthetimeIwasateenager,myambitionhadbeentobeamillionairebytheageofthirty.WhenIreachedthirtyandwasstillbroke,Iputitofftothirty-five.Atthirty-five,Iputitofftoforty,butwithlessandlesshopethatIwouldeverachievethatmagicnumber.

ButwhenIwasaskedtogivethetalkonself-mademillionaires,IrealizedthatIknewverylittleaboutthem.Ithereforethrewmywholeheartintoresearchingwhotheywereandwhattheydidtogetfromzeroto$1millioninonelifetime.

Withthesefindings,Idevelopedaprogramcalled21SuccessSecretsofSelf-MadeMillionaires,whichIhavepresentedtoprobablyamillionpeopleinfiftycountriesovertheyears.TheinterestingthingwasthatasIresearchedandtaughtpeoplethewaysthatself-mademillionairesthinkandact,Ibeganpracticingthesameprinciplesmyself.Withinfiveyears,Iwasamillionaire.

ReprogramYourThinking

Manypeople,fromallovertheworld,havetoldmethatbylisteningtothisprogramoverandoverandpracticingtheprinciplesitteaches,theybecamemillionairesaswell,evenafteryearsofpovertyandstruggle.Andsocanyou.

Inthischapter,Iamgoingtosharewithyouaseriesofsimpleideasthatyoucanlearnandapply,basedonextensiveresearchintothelivesandhabitsof

thousandsofwealthypeople.BytheLawofCauseandEffect,ifyouthinkanddothesamethingsthat

wealthypeopledo,youwillsoongetthesameresultsthattheydo.ThebestsellingauthorOgMandinooncetoldme,“Therearenosecretsof

success.Therearesimplytimelesstruthsanduniversalprinciplesthathavebeendiscoveredandrediscoveredthroughouthumanhistory.Allyouhavetodoistolearnandpracticethemtoenjoyallthesuccessthatyoucoulddesire.”

ReasonsPeopleDon’tBecomeWealthy

OnceIpassedthemagicmillion-dollarmark,Ibeganlookingaroundmeandaskingthequestion,“Whyisitthateveryonedoesn’tusethesesimpleprinciplestobecomewealthy?”

AsIcontinuedmyresearch,Ifoundthatthereweresevenreasonswhypeopledon’tbecomewealthy.Letusdealwitheachoftheminturn.

1.ITNEVEROCCURSTOTHEM

Itneveroccurstothemthattheycanbecomewealthy.Becauseoftheirupbringingandearlyconditioning,perhapscomingfromahomewherenoonehadeverbeenwealthy,andassociatingwithpoorpeople,theyneverthoughtthattheytoocouldbecomewealthy,justasmillionsofothershavedonebeforethem.

2.THEYNEVERDECIDETODOIT

Manypeoplewish,hope,dream,andfantasizeabouthowtheirliveswouldbedifferentiftheyhadalotofmoney.Theyadmireandenvypeoplearoundthemwhoaredoingbetterthantheyare.Theyworryaboutmoneyallthetime.

Buttheynevermakeafirm,do-or-diedecisiontobecomewealthy.Asaresult,theynevereventakethefirststep.Theydon’tlearnwealth-creationtechniques.Theydon’tupgradetheirknowledgeandskillssothattheybecomemorevaluableattheirwork.Theymakeexcusesandrationalizetheirsituationsbysayingthatsuccessissimplyamatterof“luck”andtheydidn’tgetany.

3.THEYPROCRASTINATE

Ifitdoesoccurtothem,andtheydecidetobecomewealthy,theynevergetstarted.Theyprocrastinate.Theymovetothatwonderfulfantasyplacecalled“SomedayI’ll.”

“SomedayI’llsavemymoneyratherthanspendingitall.”“SomedayI’llupgrademyknowledgeandskills.”“SomedayI’llworkharderandmakemyselfmorevaluable.”“SomedayI’llgetoutofdebt.”Theyenduplivingon“SomedayI’ll”formostoftheirlives.Oneofthegreatsecretsofsuccessisforyouto“voteyourselfoffthe

island!”Stopmakingexcusesandstartmakingprogress.

4.THEYFEARFAILURE

Becauseofdestructivecriticisminearlychildhoodandmistakestheyhavemadeasadults,theyareparalyzedbythefearofmakingamistake,oflosingtheirtimeormoney.Eveniftheyarepresentedwithanopportunity,theygointoaformofparalysis.

Theirfearoffailurecausesthemtocreateallkindsofreasonsnottotakeaction.Theydon’thavethetime.Theycan’tmaketheminimuminvestment.Theydon’thavethenecessaryknowledgeandskills.Likeadeercaughtintheheadlights,theyareparalyzedbytheideaoffailure,whichcausesthemtonevertakeanyactionatall.

Asithappens,mostfortunesinAmericawerestartedbythesaleofpersonalservices.Thepeoplehadnomoney,buttheyhadtheabilitytoworkhard,toupgradetheirskills,andtobecomemoreandmorevaluable.Asaresult,moreandmoredoorsofopportunityopenedupforthem.

5.THEYFEARCRITICISMANDDISAPPROVAL

Manypeoplethinkthatiftheysetagoaltobetterthemselvesfinancially,thepeoplearoundthemwillridiculethemandcriticizethem.They’reafraidthatthosepeoplewillwatchovertheirshouldersandgleefullypointoutallthemistakestheymake.Becausetheyfearthedisapprovalofotherssomuch,theyoftenattemptnothingatall.

Here’sthesolution.Whenyoudecidetobecomewealthy,don’ttellanyone.Keepitasecret.Gotoworkonyourgoalprivately,andonlytellpeoplewhentheyseeyourlifeimprovingandaskyouhowyoudidit.

6.THEYSTOPLEARNINGANDGROWING

Toachievesomethingyou’veneverachievedbefore,youmustlearnandpracticesomethingthatyou’veneverdonebefore.Therungsontheladdertofinancialsuccessareknowledgeandskill.Tobefinanciallysuccessfulstartingfromnothing,youaregoingtohavetolearn,develop,andpracticeanentireseriesofnewskillsthatwillenableyoutobecomevaluableandevenindispensableinyourwork.

AbrahamLincolnoncesaid,“Iwillstudyandpreparemyselfandsomedaymychancewillcome.”Whenyoustudyandprepareyourself,bysomeuniversalprinciple,youalwaysgetanopportunitytopracticeyournewskills.Butitisuptoyoutodeveloptheminthefirstplaceandtocontinuetodevelopthemthroughoutyourlifetime.

7.THEYLACKPERSISTENCE

Mostpeopledon’tpersistlongenoughtosucceed.Successfulpeoplewilltellyouthatthemajorreasonfortheirsuccesswasthattheyrefusedtoquit.Theyrefusedtogiveupwhenthegoinggottough.Theypersistedoverandoveragain,yearafteryear,eveninthefaceofcompletebankruptcyandfinancialruin.Theyneverstopped.

Itisamazinghowmanypeoplegiveupandquitworkingjustafewstepsawayfromthekeyturningpointintheirlives,afterwhichtheywouldhavebeenabigsuccess.Persistenceanddeterminationaretheultimateguarantorsthatyouwillachieveallyourfinancialgoals.

LearningandPractice

Fortunately,eachoftheselimitationstofinancialsuccesscanbeovercomethroughlearningandpractice.Eachoftheseobstaclescanbeturnedintoastepping-stonetosuccesswhenyoulearnhowtothinkthewayrichpeoplethink.

TheLawofCorrespondenceisanimmutablementallaw.Itworks,forallpeople,underallsituationsandcircumstances.Itisinevitableandalmostcompletelypredictable.

Withregardtowealthaccumulation,thislawsaysthatyouwillbehaveontheoutsideconsistentwiththethoughts,feelings,beliefs,ideas,andvaluesthatyouhaveontheinside.Youalwaysactontheoutsideconsistentwiththewayyou

trulybelieveontheinside,andifyoudo,youwillsoongetthesameresultsandoutcomesasotherpeoplewhobelievethesameway.

AsaManThinketh

Psychologistscallthisyourself-concept,anditisconsideredthesinglebiggestbreakthroughinhumanpotentialdevelopmentinthetwentiethcentury.Yourself-conceptisthewayyouthink,yourbundleofbeliefsaboutyourself.Youalwaysactontheoutsideconsistentwithyourself-concept,whateveritis.Andyoucanalwaystellwhatpeoplethink,feel,andbelieveaboutthemselvesbylookingatwhattheydointheirday-to-daylives.

Allimprovementsinexternalperformanceandresultsbeginwithanimprovementinyourself-concept.Whenyoustarttothinkofyourselfinpositive,constructive,andfinanciallysuccessfulwaysontheinside,youbegintoactconsistentwiththosebeliefsontheoutsideuntiltheyeventuallybecomeyourreality.

Childrenbroughtupinaffluenthomes,especiallybyparentswhostartedasentrepreneursandwhoworkedhardandbecamesuccessfulinonegeneration,aremuchmorelikelytobecomesuccessfulandwealthyasadults.Throughouttheirupbringing,theyweresurroundedbyandinculcatedwiththebeliefsandlifestylesofsuccessandaffluence.Whentheygrowup,theyexpectnothinglessforthemselvesandwillacceptnothinglessuntiltheyachieveit.

DevelopaWealthyMind-Set

Thedevelopmentofawealthyself-conceptusuallyrequiresmanyyearsofimmersionandexposuretothehabitsandbehaviorsofwealthypeople.Butsometimesitcanbeasingleexposuretoaninfluentialperson—ataseminar,inabook,oronanaudioprogram—thatmakessuchavividimpressionontheindividualthatforeveraftershethinksaboutherselfasafinancialsuccessjustlookingforaplacetohappen.

Manypeoplehavebecomewealthyafterlisteningtojustoneaudioprogramorattendingoneseminar.Inmanycases,theideasandencouragementcontainedinasinglebookhavesetpeopleoffinadifferentdirectionthatledtotheirachievingwealth,sometimesinjustafewyears.

TheHistoricalSourceofWealth

Throughoutmuchofhumanhistory,andstilltodayinsomecountries,peopleacquiredwealthbytakingitawayfromsomeoneelseorfromsomeothercountry.ThefirstthingtheNapoleonicarmiesdidwhentheyoverranacountryorprincipalitywastolootthatareaofeverythingthatcouldbecarriedaway,sendingitbacktoParis.NapoleonwassoaccomplishedattheacquisitionofplunderforFrancethathewaseventuallymadeemperorandgivenunlicensedauthoritytosendhisarmiesouttolootallofEurope.

ThefirstthingtheNazisdidunderHitlerwhentheyoverranacountrywastostealeverythingthatcouldbemovedandsenditbacktoGermanybythetrainload.WhentheRussianscounterattackedinWorldWarII,theylootedandplunderedeverythingintheirpath.Throughouthistory,everydictatorwhocomestopowerinanycountryimmediatelystealseverythinghecangethishandson.Wealthwasnotcreatedinthesecases;itwastransferredfromtheweakertothestronger.

WealthCreationToday

Then,after1815inEurope,andeventuallyinAmerica,aphenomenonoccurredthathadneverbeenseeninhumanhistory.Peoplefoundthattheycouldcreatewealthbyproducingproductsandservicesthatotherpeoplewanted,needed,andwerewillingtopayfor.Legalsystemsweresetuptoprotecttheproductionandacquisitionofwealthinthisway,therebyenrichingeverycountrythatembracedamarketsystem.

Becauseentrepreneursandbusinessbuildersdidnotfearthattheirwealthwouldbeexpropriatedbytheauthorities,contrarytothewayitisinsomecountriestoday,manyofthebestandmostinventiveentrepreneurialmindsandtalentsbecamefocusedonwealthcreationratherthansimplywealthtransfer.

InAmerica,forthefirsttimeinhumanhistory,theexpression“makemoney”becamepopularandaccepted.Peoplemovedfromallovertheworld,andstilldotoday,fortheopportunitytotakepartinthegreatestentrepreneurial,wealth-creatingsysteminallofhumanhistory.

StartingwithNothing

Infact,today,newimmigrantstotheUnitedStatesarefourtimesmorelikelytobecomemillionairesthanarenative-bornAmericanswhohavelostsightofthekeytobecomingrich:Findaneedandfillit.

SteveSiebold,authorofthebookHowRichPeopleThink,said,“Ifyouwanttomakealotofmoney,findabigproblemthatalotofpeoplehave,andsolveitinanewway.”

Thisisyourkeytowealthcreationaswell.Andthereisnootherwaytobecometrulywealthyexceptbysupplyingotherswithwhattheywantandneedandarewillingtopayfor.

DevelopRichHabits

Inthesimplestterms,richpeoplehaverichhabits,andpoorpeoplehavepoorhabits.MaryKayAsh,anamazingself-mademillionaire,usedtomotivateherdistributorsbysaying,“Don’tgettherabbithabit;thinkmink.”

Richpeoplethinkminkineveryareaoftheirlives.IrememberwhenIwasinmythirties,stillbrokeandstruggling,working

hardandmakinglittleprogress,IenrolledinanexecutiveMBAprogramatthelocaluniversity.Oneevening,whenIarrivedforclasses,alocalwell-knownentrepreneur,wealthyandsuccessful,pulledintotheparkingspacenexttomedrivingasilver-gray450SELMercedes-Benz.IgotoutofmyoldVolvoandjuststoodtherestaringathiscar.Thedriverlookedatme,lookedatmycar,andthenlookedbackathiscar.Hethensmiled,waved,andwalkedofftoclass.

Atthatmoment,IdecidedIwasgoingtodowhateverwasnecessarytobecomewealthyenoughtobeabletodriveabig,beautiful,expensiveMercedes-Benzlikethat.Ilookedintothecarandsawithadblueleatherupholstery,andImadeamentalnoteofthatasIwalkedaway.

ThinkRich

Fromthatmomentonward,Ibegantothinkrich.Ibegantoreadtwoorthreehoursadayaboutthehabitsandbehaviorsofwealthypeople.Igotanotherjobandthenabetterjob.Itookonmoreresponsibilityandmovedup.Iworkedlongerhours,sometimestwelvehoursperday,andgeneratedmoreandmoremoneyformyemployer,someofwhichhepaidouttomeintheformofbonusesandprofitsharing.

Withinthirty-sixmonths,IwalkedintotheMercedes-Benzdealership,tradedinmycar,laidmymoneydown,anddroveoutinasilver-gray450SELMercedes-Benzwithblueleatherupholstery.Itwasoneofthegreatmomentsofmylife.

DeveloptheHabits

Foryoutodeveloprichthinking,tobecomewealthy,youmustfirstdevelopthehabitsofthinkingandofactionthatwealthypeoplehave.JimRohnoncesaid,“Itisnotbecomingamillionairethatisimportant.Itisthekindofpersonthatyoumustbecomeinordertobecomeamillionairethatisevenmoreimportant.Then,evenifyouloseallyourmoney,youcanearnitallbackagainbecausenowyouarethekindofpersonwhoknowshowtomakethiskindofmoney.”

MikeTodd,thefilmproducerandhusbandofElizabethTaylor,oncelostallhismoneyonabigproductionandwentbroke.Itwasinthenewspapers,andmanyofhis“friends”laughedathimbehindhisback.

Oneofthemaskedhim,“Mike,howdoesitfeeltobepoor?”MikeToddrepliedwiththeseclassicwords.Hesaid,“I’veneverbeenpoor,

onlybroke.Beingpoorisaframeofmind.Beingbrokeisatemporarysituation.”

Hethenwentbacktoworkonhisnextproject,whichwassuccessful,andinacoupleofyearshewasrichagain.

NatureIsNeutral

TheLawofCauseandEffect,thegreatlawoftheuniverse,saysthatifyouthinkandactlikewealthypeople,yousoonbecomeoneofthem.Andifyoudon’t,youwon’t.

Natureisneutral.Natureislikethestatueofjustice,withablindfold.Natureplaysnofavorites.AsGoethesaid,“Natureunderstandsnojesting;sheisalwaystrue,alwaysserious,alwayssevere;sheisalwaysright,andtheerrorsandfaultsarealwaysthoseofman.Themanincapableofappreciatinghershedespises;andonlytotheapt,thepure,andthetrue,doessheresignherself,andrevealhersecrets.”

Fortunately,yourmindistheonethingintheuniverseoverwhichyouhavecompletecontrol,andthat’sallyouneedtogetstarted.

Something-for-SomethingThinkingVersusSomething-for-NothingThinking

Thisisamajordifferenceinthethinkingstylesofrichpeopleversuspoorpeople.Richpeoplearealwayslookingforwaystocreatevalue,todevelopand

produceproductsandservicesthatenrichandenhancethelivesandworkofotherpeople.

Theyarealwayswillingtoputinbeforetheytakeout.Theydonotbelieveineasymoneyorsomethingfornothing.Richpeoplebelievethatyouhavetojustlyearnandpayfor,intermsoftoilandtreasure,anyrewardsandrichesthatyoudesire.

Poorpeoplelackthisfundamentalunderstanding,thedirectrelationshipbetweenwhatyouputinandwhatyougetout.Theyarealwaysseekingtogetsomethingfornothingorforaslittleaspossible.Theywantsuccesswithoutachievement,richeswithoutlabor,moneywithouteffort,andfamewithouttalent.

Poorpeoplegamble,buylotterytickets,cometoworkatthelastpossiblemoment,wastetimewhiletheyarethere,andthenleaveworkatthefirstpossibleminute.TheylineupbythehundredsandthousandstoauditionforprogramslikeAmericanIdol,thinkingthattheycanbecomerichandfamouswithouteverhavingpaidthepricenecessarytodeveloptheleveloftalentandabilitythatenablesthemtoriseabovetheircompetitors.

Oneofthegreatsecretsofbecomingwealthyistoalwaysdomorethanyouarepaidfor.Ifyoudo,youwillalwaysbepaidmorethanyou’regettingtoday.Andthereisnootherway.

Gotheextramile.Bewillingtoputinfarmorethanyouaretakingout.Thereareneveranytrafficjamsontheextramile.

DevelopingNewHabits

Fully95percentofeverythingyoudoisdeterminedbyyourhabits,firstofthinkingandthenofaction.

Successfulpeoplehavegoodhabitsthatleadtohappy,productive,andfinanciallysuccessfullives.Poorpeoplehavepoorhabits,ornohabitsatall,thatleadtotheopposite.Fortunately,allhabitsarelearnablewithpracticeandrepetition.Youcanlearnanyhabitorskillyouneedtolearntoachieveanygoalyoucansetforyourself.

Theonlyrealquestionis,“Howbadlydoyouwantit?”Richpeopleandpoorpeoplehavebeenstudied,contrasted,andcompared

formanyyearstodeterminewhatitisaboutthemthatmakesthemdifferentfromeachother.

Thebottomlineisthatyoucanstartoffwitheveryadvantageinlife—goodfamily,excellenteducation,idealcontactsandopportunities—butifyoulackthe

mentalhabitsnecessaryforsuccess,theywilldoyounogood.Ontheotherhand,youcanstartwithnoadvantages,likepeoplewhoescape

fromapoorcountryoradictatorshipandarrivewithnofriends,nocontacts,evennolanguageskills,butwithexcellenthabits,andthengoontocreategreatlivesforthemselves.

TheSeven-StepStrategy

Habitsaredevelopedwithasimpleseven-stepstrategy.First,strivetodeveloponlyonehabitatatime.Ifyougetambitiousand

decidetodevelopseveralgoodhabitsimmediately,youendupdevelopingnone.Bepatient.“Makehasteslowly.”

Becauseittakesabouttwentytothirtydaysofrepetitiontodevelopanewhabit,youcanactuallydeveloponenewwealth-buildinghabitpermonth,ortwelvenewhabitsinayear.Thisisenough.

Forexample,mostwealthypeoplearisebefore6:00a.m.,fullythreehoursbeforetheirfirstappointment.Theyhaveritualsthattheyfolloweachday.Theygetup,exercise,dress,plan,andpreparefortheday.

Theyread,learnsomething,andgetorganized.Theyareusuallyatworklongbeforetheaveragepersonhashadhisfirstcupofcoffee.Thisisahabityoucandecidetodevelopimmediately.Itmaychangeyourlife.

Second,inputnewdata:Decideuponahabitthatcanbehelpfulforyoutodevelop.Beclearaboutthisnewwaythatyouwanttothinkandact.Turnthisnewhabitoverinyourmind.

Forexample,richpeoplethinkaboutcreatingwealthmostofthetime.Theylookaroundcontinuallyforopportunitiestomakemoremoneybyofferingproductsandservicesthatpeoplewantandneed,bothtodayandinthefuture.Theythinkcontinuallyaboutrevenuegeneration.Youcandothesame.

Third,affirmtoyourselfthatyoualreadyhavethishabit.Saytoyourself,overandover,“Iseemoney-makingopportunitieseverywhere.”Themostpowerfulwordsaretheonesyousaytoyourselfandbelieve.

Continuallyread,learn,study,andgatherinformationaboutmakingmoney.Readtheinterviewsandstoriesofotherpeoplewhohavestartedwithverylittleandbecomefinanciallysuccessful.Thinkabouthowyoucoulddothesame.

Fourth,visualizeyourselfasyouwouldbepracticingthisnewhabit.Remember,“Thepersonyouseeisthepersonyouwillbe.”

Allimprovementinyourperformancebeginswithachangeinyourmentalpicturesofyourselfactinginaparticularway.Youalwaysperformonthe

outsidethewayyouseeyourselfperformingontheinside.Createamentalpictureofyourselfgettingoutofbedbefore6:00a.m.and

immediatelybeginningyourday.Itisamazinghowmanywealthypeoplesaythattheystarteverymorning,sometimesat4:00or5:00,withthirtytosixtyminutesofaerobicexercise.Ifyoudothiseverydayforamonth,youwillsoondevelopapositiveaddictiontothefeelingofbeingbright,alert,andfullofenergyalldaylong.

Fifth,actasifyoualreadyhadthisnewhabit.ThereisaLawofReversibilitythatyoucanusethatisresponsibleformanyofthegreattransformationsinpeoplethatleadtofinancialsuccess.

Thislawsaysthatifyoufeelinaparticularway,orifyoubelieveyourselftobeaparticulartypeofperson,youwillnaturallyactinaparticularway.Butwhatifyoustartoffnotfeelingorbelievingthatyouareawealthyorsuccessfulperson?

WilliamJamesofHarvardpointedout,“Ifyoudonotalreadyhaveahabitthatyoudesire,actasifyoualreadyhadthishabitineveryrespect,andtheactionitselfwillsooncreatetheactualbelief.”

Successfulpeopleplaneverydayinadvance,usuallythenightbefore.Theysetprioritiesontheirtasksandbeginonthemostimportanttaskfirstthing,beforeanythingelse.Youcandothesamething,startingtomorrow.

Asyouplanandorganizeyourday,thinktoyourself,“Thisiswhatrichpeopledo.”Innotimeatall,itwillbeahabitandwillbelockedinasapermanentpartofyourdailyroutine.

Sixth,refusetoallowexceptions.Onceyouresolvetodevelopahabit,neverletupuntilthenewhabitislockedinpermanently.Don’trationalizeawayunhelpfulbehavior.Refusetojustifyormakeexcusesfornotremainingtruetowhatyouhaveresolvedtodo.Thisiswhatpoorpeopledo.

Seventh,ifyou“falloffyourhorse,”getbackonimmediately.Ifyoulapsebackintotheoldhabit,whichyouwillfromtimetotime,immediatelycatchyourselfandbeginactingconsistentwiththenewhabitthatyouhavedecidedtodevelop.

Brushoffyourtemporarylapseandsay,“Nexttime,I’lldobetter,”andthenbeginagain.Don’texpecttogetitrightthefirsttime,oreventhefirstfewtimes.Bepatientandpersistent.

FormGoodHabits

Goodhabitsarehardtoformbuteasytolivewith.Badhabits,ontheotherhand,areeasytoformbuthardtolivewith.Theruleisforyoutoformgoodhabitsandmakethemyourmasters.

Newhabitsaredifficulttopracticeandlearnatfirst,butsoontheybecomeautomaticandeasy.Soonitbecomeseasiertopracticeyournewhabitthantofallbackintoyouroldwaysofdoingthings.

HabitsofWealthyPeople

Youcandevelopseveralhabitsthatarepracticedbyvirtuallyallrichpeople.Forexample,intheForbes2015surveyofself-madebillionaires,fully76percentattributedtheirsuccessto“hardworkandself-discipline.”

Millionairesworkaboutsixtyhoursperweek,usuallysixdaysaweek,tenormorehoursperday.Theyariseearlyandgetstartedby7:00or8:00a.m.andkeepgoinguntil6:00or7:00p.m.AsDavidFoster,themusicimpresario,said,“Idon’tknowanysuccessfulpeoplewhoworklessthansixdaysaweek.”

DoWhatYouLove

Here’sthekey.Dowhatyoulovetodo.Doworkthatyouenjoy,thatattractsyou,energizesyou,andmakesyouhappy.Mostmillionairessaythattheyneverworkadayintheirlives.Theyjustdosomethingtheylovetodoandgetpaidverywellforit.Youshoulddothesame.

Inadditiontoworkinghardandhavingself-discipline,millionairesdonotwastetime.Theythinkcontinuallyaboutrevenuegenerationbyservingtheircustomersbetter,faster,andcheaperthantheircompetitors,nomatterwhatbusinesstheyarein.Theycontinuallyaskthemselves,“Isthisthemostvaluableuseofmytimeinachievingmygoals?”

SetClearGoals

Mostmillionairesareintenselygoaloriented.Theyhaveamajordefinitepurpose,onebiggoal,sometimescalledaBHAG(BigHairyAudaciousGoal)thattheythinkaboutandworkonallthetime.Whatisyours?

Millionairessetmeasures,especiallyfinancialmeasures,anddeadlinesforeachoftheirgoals.

Millionairesarefrugal,carefulwiththeirmoney.Theyexamineeverydetailofaninvestmentoranexpensebeforemakingadecision.Theyliketoearnmoney,buttheyhatetolosemoney.

Millionairesfocusonfinancialaccumulation,onearningandkeepingmoreandmoreoftheirmoney.AstheJapaneseproverbsays,“Makingmoneyislikedigginginthesandwithapin.Losingmoneyislikepouringwateronthesand.”

UseYourTimeWell

Millionairesarehighlyproductiveandusetheirtimewell.Theyplaneverydayinadvance.Theysetclearprioritiesontheirtime.Theyfocusandconcentrateonthemostvaluableuseoftheirtimeeveryminuteandeveryhour.

Poorpeoplethrowthemselvesattheirwork,withoutdetailedplanning,andendupwastinganenormousamountoftime,becomingtiredanddiscouragedlongbeforetheyachievesuccess.

Oneofthemostvaluableskillsyoucanlearnistocalculateyourdesiredhourlyrate,orincome.Dividethenumber2,000,theaveragenumberofhourssuccessfulpeopleworkinayear,intoyourdesiredannualincome.Ifyourgoalistoearn$100,000peryear,dividedby2,000hours,thisequals$50perhour.

Fromthenon,everyminuteandhourofeveryday,youaskyourselfifwhatyouaredoingispayingyouyourdesiredhourlyrateormore.Ifitisn’t,youimmediatelystopdoingit.Youdelegate,outsource,oreliminatethattask.Youabsolutelyrefusetodoanythingthatdoesnotpayyouthekindofmoneythatyouhavedecidedtoearn.

JustSayNo

AsNancyReagansaid,inadvisingteenagersaboutdruguse,“Justsayno!”Justsaynotoanythingthatisnotthehighestandbestuseofyourtime,toanythingthatdoesnotpayyouthekindofmoneythatyouwanttoearn.

WhenWarrenBuffettwasrecentlyaskedthesecretofhissuccess,herepliedimmediately,“Ijustsaynotoeverything.”

JohnDoerr,themultibillionaireventurecapitalistfromSiliconValley,hasacompletestaffwhosejobistodoeverythingexceptforthefewthingsthatonlyhecandothatareresponsibleforgeneratingtensofmillionsofdollarsforthefirm.Hesaysnotoeverythingelse.

KeepLearningandGrowing

Millionairesarealwayslearningnewideas.Theyread,learn,andlistentwotothreehoursaday.Theysubscribetosummariesofbusinessbooksandarticles,bothwrittenandaudio.Theyknowthatonekeyidea,combinedwiththeirexistingknowledge,canchangethefutureoftheirbusinessandmaybeevenearnthemafortune.Theyareconvincedthattherightideaexistssomewhere,andtheyareconstantlyseekingitfromeverysourcepossible.

AvoidtheTelevisionTrap

Richpeoplewatchlessthanonehouroftelevisionperday.Poorpeoplewatchfivetoeighthoursoftelevisionperday,onlygoingtobedwhentheyaretootiredtowatch,andthengetupandturnthetelevisionontostarttheday.

Televisioncanbeawonderfulslavebutaterriblemaster.Yourtelevisioncanmakeyourichormakeyoupoor.Itwillmakeyourichifyouleaveitoffmostofthetime.Itwillmakeyoupoorifyousitandwatchithourafterhour.

Arecentstudyfoundthataspeoplebecamewealthierandwealthier,theybegantomovetheirtelevisionsetfartherandfartherfromthecenteroffamilyactivity.Thewealthiestpeopleactuallysetupa“televisionroom,”aplacewheretheyhavetogetup,godownthehall,andgetthemselvesseatedtowatchtelevisioninthefirstplace.Theymakeitasdifficultaspossibletowatchtelevision,includinggettingridoftheirtelevisionsetscompletely.

BecomeInsatiablyCurious

Anotherhabitofwealthypeopleisthattheyaskalotofquestionsandthenlistencloselytotheanswers.Middlemanagersandmiddle-incomeearnersseemtotalkalotandpaylittleattentionwhenothersarespeaking.Wealthypeopleaskalotofquestions,listenalot,andeventakenotes,knowingthatalmosteveryonecancomeupwithvaluableinsightsthatcanbeusefulingeneratingwealthandearningmoremoney.

MaintainYourHealthandEnergy

Richpeopletakeexcellentcareoftheirphysicalhealth.Theykeepthemselveswell-informedaboutthethingstheycandotolivealonger,healthier,andbetterlife.

Ittakeshighlevelsofenergytobesuccessful,toworklonghours,tostartearlierthanothers,andtoworklater.Richpeoplearecontinuallyseekingwaystoincreasetheirlevelsofenergy.

Oneexpertsaidthatthemostimportantassetofanybusinessisrestedexecutivethinkingtime.Thisisyourmostimportantmentalassetaswell.Howcanyougetmoreofit?

PROPERWEIGHT

Thisiswhereproperweightissoimportant.Beingoverweightisassociatedwithnumeroushealthproblems.Oneofthemisthatcarryingextrapoundsputsastrainonyourbody,burningupenergythatyoucouldbeusingforachievingthesuccessyoudesire.

Thefive-wordruleforweightlossissimply“Eatlessandexercisemore.”Wealthypeopleeatnutritiousfoodsanddrinkalotofwater.Asaresult,theyhavemoreenergy,especiallymentalenergytheycanfocusongettingmoreandbetterresultsandearningmoremoney.

PROPERREST

AccordingtoAndersEricsson,apsychologistatFloridaStateUniversity,eliteperformerssleepanaverageof8.46hourseachnight.Whathefoundwasthatpeakperformanceishardwork.Ittakesalotofenergy.Yousimplycannotperformatyourbestforanyperiodoftimeifyou’reonlysleepingfive,six,orsevenhourspernight.Youneedeighttoninehoursofsleeptototallyrestyourbodyandrechargeyourbrainforthedayahead.

PROPEREXERCISE

Wealthypeopleexerciseanaverageoftwohundredminutesperweek,oraboutthirtyminutesperday,ormore.Theygetupandexerciseeachmorning.Theywalkmoreoftenfromplacetoplace,takethestairsmoreoftenthantheelevator,andarealwayslookingforopportunitiestomovetheirbodies.

Someoneoncetoldme,“Everyjointinthebodyismeanttobefullyarticulatedeverysingleday.”Thatpieceofadvicehasguidedmypersonalexerciseprogramforyears.

CalculatedRiskTaking

Richpeoplearewillingtotakeriskstoincreasetheirwealth.Buttheydonotgambleortakechances.Theypracticeaspecialformof“riskavoidance”inthepursuitofhigherincome.Theyreduceriskthatisinherentinanythingnewordifferentbygatheringmoreandmoreinformationfromeverypossiblesource.

Wealthypeoplearewillingtomoveoutoftheircomfortzones,tostretchthemselvesandtrysomethingnewanddifferentifthat’swhatisnecessarytoachievegreaterfinancialrewards.Richpeoplearecontinuallyseekingopportunitieswheretheycanapplytheirintelligenceandresourcestocreatewealthinnewanddifferentways.

Richpeoplereduceinvestmentriskbyworkingwithexpertsandbysupervisingtheirinvestmentscarefully.Oncetheyhavemadethemoney,theyaredeterminedtoholdontoit.

NetworkContinually

Richpeoplenetworkcontinually.Theyarealwayslookingforwaystobroadenthenumberoftheirrelationshipswithpeoplewhomtheycanhelpandwhocanhelpthem.ButasBarondeRothschildoncesaid,“Makenouselessacquaintances.”

Richpeopledonotspendtheirtimewithpeoplewhoaregoingnowherewiththeirlives.Theyseekoutthemostsuccessfulpeopleintheircommunityandtheirindustryandlookforwaystospendmoretimewiththem.Theystayawayfromnegativepeople,thosewhocriticize,condemn,andcomplain.Iftheyfindthemselveswithsomeonewhoisgrumblingaboutlifeorwork,theypolitelyexcusethemselvesandgoaway.

BeaJoiner

Dowhatrichpeopledo.Joinoneortwobusinessassociationsthatareimportantorhelpfulforyourfield.Attendthemeetings.Identifythemostimportantcommittees,andvolunteertositononeofthem.

Themostimportantcommitteesinanyorganizationtendtoattractthemostimportantpeoplewithinthatindustry.Whenyouserveonthesecommittees,yougetanopportunitytomeetandknowthesepeopleinaneutral,nonthreateningenvironment.Inaway,yougetto“interview”withthesepeopleandletthemsee

thekindofpersonyouarebythequalityofthecontributionyoumaketoyournonprofitorganization.

TheMostImportantQuality

Perhapsthemostsignificantqualityofwealthypeopleisthattheyfocusandconcentrateonexcellentperformance,ongettingbetterandbetteratthemostimportantworktheydo.

Inthefinalanalysis,nothingwillhelpyoumoreinlifethantodevelopareputationasthe“go-toguyorgirl,”theindividualwhoisrecognizedastheverybestperformerinyourparticulararea.

Justasthebestinvestmentthatacompanycanmakeisinimprovingthequalityofitsproductorserviceintermsofwhatitscustomerswantandneed,theverybestinvestmentthatrichpeoplemakeisinthemselves,gettingbetterandbetterintheirkeyskillareas.

YourFutureIsUnlimited

Therehaveneverbeenmoreopportunitiesformorepeopletoearnmoremoneyandachievetheirfinancialgoalsfasterthanexisttoday.ButasEarlNightingalesaid,“Beforeyoucanhavesomethingmoreanddifferent,youmustbecomesomeonemoreanddifferent.”

BytheLawofIndirectEffort,whenyoufocussingle-mindedlyondevelopingthethinkingstylesofwealthypeopleandengaginginthebehaviorsthattheypracticeeveryday,youwillsoonbecomeawealthypersonyourself,bothontheinsideandontheoutside.

ACTIONEXERCISES

1. Resolvetodaytothinkandactlikewealthypeople.Practicetheideasinthischapter.Readtheinterviews,stories,andbooksaboutpeoplewhohavebecomefabulouslysuccessful,anddothethingstheydo.

2. Selectonehabitthatyouthinkcanhelpyoutodevelopthemind-set,theself-concept,ofwealthypeople,andworkonthateverydayuntilitbecomesautomaticandeasyforyou.

3. Selectoneactivityorlifestylebehaviorofsuccessfulpeopleandincorporateitintoyourlifestyleaswell.Doitnow.

SUMMARY

Successisnotanaccident.Failureisnotanaccidenteither.Youarewhereyouareandwhatyouarebecauseofyourself,becauseofyourownthinkingandbehavior.

Ifyouwantyourfuturetobebetterinanyarea,youmustfirstchangeandimproveyourthinkingalongthelinesdescribedinthisbook.Youmustmakenewchoicesandbetterdecisions.

Fortunately,everythingyouaretoday,youhavelearnedfromearlychildhoodastheresultofinputandpractice.Atanytime,youcandecidetolearnnewideas,practicenewbehaviors,andgetdifferentresults.

Goodluck!

ABOUTTHEAUTHOR

BrianTracyischairmanandCEOofBrianTracyInternational,acompanyspecializinginthetraininganddevelopmentofindividualsandorganizations.Hehasstudied,researched,written,andspokenforthirtyyearsinthefieldsofeconomics,history,business,philosophy,andpsychologyandisthetop-sellingauthorofnumerousbooksthathavebeentranslatedintodozensoflanguages.Youcancontacthimatbriantracy@briantracy.com.

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