Valuetainment - How The Mighty Fall - 5 Stages Before A Company Goes Bankrupt

00:00:00.000 Look, being successful is hard, but to stay successful is super, super hard.

00:00:05.560 Matter of fact, just recently I finished a book by Jim Collins, Not Good to Great,

00:00:08.940 a different one that I want to share with everybody.

00:00:10.280 I think everybody in today's economy has to read this book.

00:00:13.180 He doesn't talk about the keys to success.

00:00:15.920 He talks about the five stages that entrepreneurs, business owners,

00:00:20.600 CEOs go through that eventually causes them to go out of business.

00:00:23.900 And we're going to talk about that today.

00:00:30.000 We're about to go out of business.

00:00:35.280 I'm panicking.

00:00:35.940 This is how much money I've got in savings.

00:00:37.700 My employees are complaining about this.

00:00:39.220 I'm going through that, whether it's real estate, mortgage,

00:00:41.020 it doesn't matter, many different industries that they're calling me.

00:00:43.600 But the book explains five stages.

00:00:46.160 Let me share with you what prompted us to want to make this video.

00:00:48.220 So many business people today that were consulting or calling us talking about,

00:00:52.680 Pat, I think we're done.

00:00:54.300 I don't think we can do anything else right now to save our business.

00:00:56.720 And I'm telling you right now, 90% of people who say that, you're not done yet.

00:01:01.900 Stage number five, for some of you that are there, you are done.

00:01:05.100 But 90% of you are not done.

00:01:06.660 And I'll explain to you what the stage number five is.

00:01:08.400 For the right person watching this, you're going to call this the best video you watch

00:01:11.640 with value attainment for years.

00:01:12.960 So let's get right into it.

00:01:13.920 By the way, I challenge you to watch this with an open mind because some of the stuff

00:01:17.140 I say, it's going to be directed to you and it's going to sting.

00:01:19.320 It's going to be hard.

00:01:20.320 And probably nobody is telling you any of this stuff, but I'm going to be telling you this stuff

00:01:23.280 if you are in this situation and hopefully you'll do about it.

00:01:25.900 Because the same way a person doesn't become successful overnight is the same way the person

00:01:30.620 doesn't go out of business overnight.

00:01:32.060 There are certain things and behaviors you and I do that causes this business to get to

00:01:36.260 that level.

00:01:36.740 So out of the five stages, okay, once you reach stage number five, you're going out of business.

00:01:42.440 That's when it's death and capitulation of your business.

00:01:45.480 We'll get to that here in a minute.

00:01:46.840 But most of the time, you can save your business.

00:01:49.500 So let's go through it.

00:01:50.340 The author, Jim Collins, writes a book called How to Mighty Fall.

00:01:54.860 In How to Mighty Fall, he explains these five different stages that businesses go through.

00:01:59.560 Stage number one, he calls it the hubris born of success.

00:02:03.420 So what does this mean?

00:02:04.260 Look, this is a phase where you're winning.

00:02:06.360 You're doing great.

00:02:07.280 Everybody's telling you're amazing.

00:02:09.240 You're living in a nice place, driving the nice cars, have money in the bank, eating at

00:02:13.380 the right places.

00:02:14.200 You start saying things like, we didn't get lucky.

00:02:17.000 It was 100% me.

00:02:18.420 We're the best.

00:02:19.700 No one's better than us.

00:02:21.120 And all of a sudden, you become entitled to success.

00:02:24.280 Like an almost entitlement feeling of success is always going to be here.

00:02:28.640 We're never going to lose it because we're smarter than everybody else.

00:02:31.900 That phase, when you go through that phase, bad things are about to happen next.

00:02:36.920 So this stage is when you start kind of feeling like, let me tell you, we won because we're

00:02:40.320 smarter than everybody.

00:02:41.120 We're better than everybody.

00:02:42.240 We're stronger than everybody.

00:02:43.160 You become overly confident and it's seen.

00:02:47.040 And so you become entitled to success.

00:02:48.960 We're going to deserve the next level of success.

00:02:51.360 We didn't get lucky.

00:02:52.160 It was all us.

00:02:53.000 It's 100% hard work.

00:02:54.260 It's because of this.

00:02:55.380 And then you get a casual little bit.

00:02:56.680 You show up a little bit later.

00:02:57.860 You are no longer that intentional.

00:02:59.880 Your level of paranoia drops.

00:03:01.620 You put your guard down.

00:03:03.180 And that, unfortunately, leads to the next stage.

00:03:06.140 Stage number two, undisciplined pursuit of more.

00:03:08.020 And what does pursuit of more mean?

00:03:09.220 What's wrong with being pursuit of more?

00:03:10.560 Aren't we supposed to be ambitious about going more?

00:03:13.340 Yes.

00:03:13.640 But the mindset becomes, hey, more innovation, more innovation, more innovation.

00:03:18.660 That's what we got to do rather than, hey, let's take what we got here and let's go deep

00:03:23.100 with it.

00:03:23.340 The other day I had a meeting four weeks ago with our guys and I went upstairs and I said,

00:03:27.640 listen, guys, we keep trying to add more companies and more products and more everything.

00:03:31.360 Here's all I want to do.

00:03:32.080 These are the products that we have.

00:03:33.360 These are the companies that we're running.

00:03:34.760 I don't want anything else.

00:03:36.140 How can we take these things deeper?

00:03:38.300 And what can we get rid of?

00:03:40.020 Okay.

00:03:40.780 Rubbermaid, a company, a case study that the author talks about in the book is they had

00:03:44.800 a few different products that were killing it.

00:03:46.240 All of a sudden they went from having a few different products.

00:03:48.340 They went so wide that they couldn't go deeper to scale.

00:03:51.680 They said, we're going to produce one new product every day.

00:03:54.440 Three years later, they have a thousand products.

00:03:56.380 How do you manage a thousand products?

00:03:58.180 How do you drive a thousand different products?

00:03:59.820 Steve Jobs, after he got fired the second time around that he came back, he looked at

00:04:03.400 all these different products Apple had.

00:04:04.760 They're about to go out of business.

00:04:06.040 Nope.

00:04:06.840 Focused.

00:04:08.380 High-end computer that's going to be more, you know, that can do more than low, than cost

00:04:13.420 for, this is what we're doing.

00:04:15.060 This is what we're selling.

00:04:15.880 These are our customers.

00:04:16.640 Let's stay focused on this.

00:04:17.960 And then Apple came back up and then it introduced the iPad, all the other stuff.

00:04:22.440 So as much as innovation is good, over-innovation of going too wide ends up leading

00:04:27.860 to lack of focus.

00:04:28.720 Stage number three, denial of risk and peril.

00:04:31.320 And by the way, this one's a little bit interesting because this is when, you know how typically

00:04:35.580 you're doing a leadership meeting and you talk about data.

00:04:37.520 Well, let me tell you what we did last month.

00:04:39.020 Well, let me tell you what we did last month.

00:04:40.320 And let me tell you what we did last month.

00:04:41.400 Let me tell you what we did last quarter.

00:04:42.400 Let me tell you what we did last year.

00:04:44.700 Leaders don't want to touch data anymore.

00:04:46.780 And everything becomes, guys, we have to stay positive.

00:04:49.100 We can't look at the negative stuff.

00:04:50.320 The author is explaining.

00:04:51.360 Let me read you exactly how he reads it.

00:04:52.940 He says, the leaders of the company upsell the positives and ignore the negatives.

00:04:58.520 Does this sound familiar to you within your business?

00:05:01.260 If it does, you may be at stage three.

00:05:04.160 You're concerned about what's going on and your key guys are sitting there saying, does

00:05:08.540 our leader have the audacity to talk about what things we need to improve?

00:05:11.360 Because I need some real data.

00:05:13.140 The company at this phase stops paying attention to the negative data and what solutions to come

00:05:17.320 in.

00:05:17.480 They just kind of look this way, avoiding all the issues that I have here on this side.

00:05:21.800 Stage number four, grasping for salvation.

00:05:23.880 At this phase, let me tell you what's going on so this kind of makes sense to you.

00:05:26.340 At this stage, everyone knows the client is here.

00:05:30.000 Employees, customers, maybe even the market.

00:05:32.360 You can no longer hide it by just talking about the positives.

00:05:35.240 People know something is going on.

00:05:37.640 No matter how much you try to hide it, you can't do it.

00:05:40.580 So now you as the leader are exposed.

00:05:42.220 So you sit there like, oh my God, what do we do?

00:05:44.960 Hey, let's hire McKinsey.

00:05:47.180 They can solve our problems.

00:05:48.320 Let's bring them in. 0.98

00:05:49.000 Let's hire the next consulting company.

00:05:50.980 Let's bring those guys in. 1.00

00:05:52.420 Let's do something for sale.

00:05:54.140 Let's do the next creative campaign.

00:05:56.180 Let's just try this and let's just try that.

00:05:58.120 And let's just do this and let's just do that.

00:05:59.920 And you're panicking.

00:06:00.800 And everybody's like panicking, panicking, panicking, panicking, anxiety, anxiety, anxiety,

00:06:04.020 anxiety.

00:06:04.500 And you're like, oh my, rather than wanting to go back to the basic fundamentals, which when

00:06:07.540 I tell you the story of what this female CEO of Xerox did, you're going to sit there 1.00

00:06:11.300 and say, this makes a lot of sense.

00:06:12.260 But everybody wants to get to, you know, trying to figure out a quick fix.

00:06:17.240 And the last thing you're looking at is what got us to this point?

00:06:21.080 We're spending way too much time thinking about what we do.

00:06:24.380 We forgot why the hell were we doing what we were doing?

00:06:29.320 The why becomes a last thing on your mind.

00:06:31.560 All you're starting to think about is a quick fix.

00:06:33.900 And unfortunately, if you stay in that stage for too long, you go to stage number five.

00:06:37.500 And stage number five is capitulation to irrelevance or death.

00:06:40.860 And what does this mean?

00:06:41.640 You're about to go out of business.

00:06:42.820 And why?

00:06:43.460 Here's what happens.

00:06:44.840 Hope, the whole word of hope, hope of future.

00:06:48.760 Having faith, things are going to work itself out.

00:06:51.060 That's completely gone.

00:06:52.640 People are afraid.

00:06:53.460 They get tied with money.

00:06:55.040 Money's starting to go.

00:06:56.760 Employees are getting afraid.

00:06:58.240 Employees are starting to quit.

00:06:59.880 And one day you're sitting there saying, oh my God, what do we do now?

00:07:03.040 And it's too late.

00:07:03.800 You're out of business.

00:07:04.460 If you're watching this, and this just kind of gives you a heavy, heavy feeling right here,

00:07:10.640 I understand.

00:07:11.720 I've been there too. 0.99

00:07:13.060 It sucks. 0.97

00:07:14.080 It's not a lot of fun. 0.97

00:07:15.500 But I'm telling you, there's a high chance you're not at stage number five yet.

00:07:19.660 You're probably at three or four.

00:07:21.560 But thank God you're watching this video to get this content for yourself.

00:07:25.400 So in this situation, what do you do?

00:07:28.020 Well, let me tell you the story of Xerox.

00:07:30.940 Okay, with this lady named Anne Mulcahy. 0.70

00:07:33.440 Anne Mulcahy got started with Xerox in 1976.

00:07:37.600 She started working there.

00:07:38.760 Okay.

00:07:39.700 24 years later, she was in sales for 16 years.

00:07:43.300 She was just a field rep is what she was. 1.00

00:07:45.680 24 years later, August of 2001, the board comes up to her and says, hey, Anne Mulcahy,

00:07:50.960 yes, we kind of want to make you the CEO.

00:07:53.200 And she's like, oh my God, you're making me the CEO.

00:07:55.080 Do you realize when you're making me the CEO?

00:07:57.000 Yeah, we kind of want you to be the CEO.

00:07:58.640 No problem.

00:07:59.380 I'll take it.

00:08:00.080 Great attitude, simple woman, high energy, came from sales. 0.99

00:08:04.040 She understood the hard work that salespeople put in.

00:08:07.000 She respected salespeople.

00:08:08.140 She was always in the field shaking hands.

00:08:10.080 Hey, how you guys doing?

00:08:10.880 You guys good?

00:08:11.200 You guys talking to customers?

00:08:12.600 When she took over as a CEO, you ready?

00:08:15.020 The company had only $100 million in cash.

00:08:17.660 This is a one.

00:08:18.300 Now, keep in mind, some people may say, Pat, $100 million, that's a lot of money in cash.

00:08:21.360 Yes, you have $100 million in cash, but you got $19 billion of debt.

00:08:27.420 Let me say that one more time.

00:08:29.540 $19 billion of debt.

00:08:31.460 You have $100 million of cash.

00:08:32.720 Just to put that in perspective, that means you got $190,000 of credit card debt, but you

00:08:38.180 only have $1,000 in the bank.

00:08:39.900 How would you feel?

00:08:40.880 And they said, here you go.

00:08:42.600 You're officially the CEO of Xerox.

00:08:44.220 And she comes in.

00:08:45.080 What the hell do we do?

00:08:46.280 The year she became the CEO, Xerox lost $376 million in 01.

00:08:53.380 So she sat there.

00:08:54.920 Rather than getting super, super creative, she went back, remembered what she did in

00:09:00.480 sales.

00:09:01.140 She went back telling the story, selling the dream, selling the vision, going back to the

00:09:06.700 basic fundamentals, talking to everybody with this mission, getting excited about what worked.

00:09:11.820 We don't need 50 new products.

00:09:13.300 We don't need 100 new products.

00:09:14.440 We don't need to go hire all these consultants and spent our money thinking about that these

00:09:19.920 are the guys that are going to save us the money.

00:09:21.880 She went in and she went back to basic fundamentals. 0.72

00:09:24.360 And people started feeling her hope, her excitement, her enthusiasm.

00:09:28.320 A couple of years later, they had net profits of a billion dollars.

00:09:31.560 A couple of years later, she was recognized as the CEO of the year by Chief Executive Magazine.

00:09:38.740 She was number six in Woman of the Year on Forbes Magazine.

00:09:41.460 She was on so many different lists.

00:09:42.880 She talked at Harvard.

00:09:43.700 She, next thing you know, she's sitting on the board of Citi. 0.99

00:09:45.980 Everybody wanted to work with this lady because they brought someone who understood the basic 1.00

00:09:51.640 fundamentals.

00:09:52.440 She was excited.

00:09:53.260 She was enthusiastic.

00:09:54.340 She unified.

00:09:55.140 She brought people together saying, yes, we have these mistakes.

00:09:57.980 Yes, these are real numbers.

00:09:59.500 Yes, we're $19 billion in debt.

00:10:01.380 Yes, we only have $100 million in cash, but we can do something about it.

00:10:04.700 And that energy became infectious.

00:10:05.940 So now, if you're watching and saying, well, Pat, how do we find people like this?

00:10:10.060 The book explains the five qualities you look for, specific people that help you take the

00:10:14.100 company to the next level.

00:10:15.120 I'm going to share with you what those five qualities are.

00:10:17.260 All right.

00:10:17.480 So the five qualities Jim Collins talks about are the following.

00:10:19.800 Number one, look for people who fit with company values.

00:10:23.380 A lot of times you may find a very talented person, but they don't fit the company values.

00:10:27.000 That's not going to work.

00:10:27.560 By the way, while you're in this situation, we're like, what do we do next with the company?

00:10:31.320 These are also the five qualities you're looking for to help take the company to the next level.

00:10:35.400 But he's talking about that.

00:10:36.940 You also look at this while you're hiring everybody.

00:10:39.160 So again, number one, look for people that fit the company values.

00:10:42.280 Number two, the right people don't need to be tightly managed.

00:10:44.720 If you're overly managing somebody constantly to see what they're doing, they're not the right

00:10:49.780 people.

00:10:50.540 The right people, they just say, here's a job.

00:10:52.220 Here's what we're doing.

00:10:52.700 They're going to go get the job done.

00:10:54.100 They don't have to constantly be tightly managed.

00:10:56.400 Number three, they don't look at the job as a job.

00:10:59.500 They look at it as purely a responsibility.

00:11:01.780 They take it personally to say, hey man, that's my job.

00:11:03.920 It's on me.

00:11:04.260 I'm going to get this fixed.

00:11:04.960 Don't worry about it.

00:11:05.440 I got it.

00:11:06.320 There's a certain feeling where it's like, oh, it's not my job.

00:11:08.860 I didn't do this.

00:11:09.640 It's not on me.

00:11:10.440 I don't have to do anything.

00:11:12.040 It's purely a responsibility.

00:11:13.600 They're like, oh, I can't believe we're working this.

00:11:15.340 Those types of things don't come out of their mouth.

00:11:17.340 All they think about is it's my responsibility.

00:11:19.520 We're going to get it done.

00:11:20.660 Number four, they fulfill their commitment.

00:11:22.460 They keep to you and they're very careful to never overcommit.

00:11:25.000 So a lot of times you may have certain people that are going to tell you, I think we're

00:11:28.540 going to do this and they constantly fall short.

00:11:31.080 I think we're going to do this and they constantly fall short.

00:11:33.960 I look at it as a test we take in school.

00:11:37.520 What's an A?

00:11:38.740 90% or higher.

00:11:40.160 B is 80% or higher.

00:11:41.600 C is 70% or higher.

00:11:43.300 D is 60% or higher.

00:11:44.680 Anything below 60% is what?

00:11:46.060 Fail.

00:11:46.680 If a person tells me, Pat, I think we're going to do $3 million this month.

00:11:49.980 They do 2.7 million.

00:11:51.860 That's 90% of what they said they're going to do.

00:11:53.620 That's still an A.

00:11:54.220 Of course, you want them to do what?

00:11:56.120 3.1 million.

00:11:57.560 But that's still in the A category.

00:11:58.960 But if somebody says, we're going to do $3 million this month and they do 1.2 million,

00:12:02.920 that's fail.

00:12:03.780 And if they continuously tell you what they're going to be doing and they keep failing, that's

00:12:07.600 not somebody they can rely on long term.

00:12:09.740 You want people that give you a number.

00:12:11.720 That's not easy.

00:12:12.540 It's a stretch.

00:12:13.420 But they do whatever they can within their power energy to keep their work to come through

00:12:17.920 for the company.

00:12:18.820 Number five, passionate about their work and not just passionate about their work like,

00:12:22.960 oh, this person loves what they're doing with their jobs.

00:12:24.720 Not that.

00:12:25.460 They don't need all the shine.

00:12:26.820 They don't need all the credit.

00:12:28.280 They constantly want to give the shine to other people.

00:12:30.080 Let me tell you what this person did.

00:12:31.540 Let me tell you what Johnny did.

00:12:32.920 Hey, I got to tell you.

00:12:33.700 Hey, Jack, great job with your project and what you guys did.

00:12:36.980 No, Pat, it was great.

00:12:37.900 But let me tell you, Larry was here with us till midnight.

00:12:40.320 Johnny was here too with us till midnight.

00:12:41.660 Do you know what Jackie did the other day?

00:12:43.500 She went out there into the city to get the permits and pop, pop, pop, pop, pop.

00:12:46.220 Now, they're willing to constantly give that shine.

00:12:49.660 And when it comes down to pressure type situations like this, and Anne Mulcahy, who was just a

00:12:55.240 field rep for 16 years when she got started in 1976, 24 years later, gets nominated by

00:13:01.040 the board to become the CEO.

00:13:02.660 And she becomes the CEO of the year by Chief Executive Magazine.

00:13:05.780 And she's on Forbes as one of the most powerful women in the world. 0.99

00:13:08.860 How does this happen?

00:13:09.820 She just started as a sales rep. 0.69

00:13:11.100 But she had these five qualities.

00:13:13.380 And these five qualities, eventually leaders like this with these five qualities are trusted

00:13:18.500 by a board or others to say, I think you're ready to take this company to the next level.

00:13:23.700 So there you have it.

00:13:24.420 Now you know what you need to do to not fall under the fifth state so the future looks

00:13:27.740 bright for someone like you.

00:13:29.500 Two things I want to share with you.

00:13:30.520 Number one, these latest hats just came.

00:13:32.980 We just had a merch drop.

00:13:33.900 What I love about these new hats that we did, this is purely custom, handmade, future looks

00:13:38.480 bright, statement on the side, future looks bright here.

00:13:40.940 And the vitamin logos on the inside.

00:13:43.080 Everything I want when I was building my business, I had laminations on my shower wall.

00:13:48.140 I had quotes everywhere in my wallet, on my phone.

00:13:51.320 This statement future looks bright.

00:13:52.820 I've probably said a few hundred thousand times.

00:13:56.100 I want it everywhere around me.

00:13:58.540 If you haven't yet ordered your own limited edition future looks bright, you can order

00:14:01.940 one of the three or all the colors, black, white, or red.

00:14:05.780 Click here to order the hats.

00:14:07.400 They will sell out in no time.

00:14:08.640 Or, second thing I want you to do is watch the video, how to find your running mate. 0.98

00:14:13.740 What qualities to look for to find a running mate, specifically with these five things that

00:14:17.500 Jim is talking about.

00:14:18.660 If you've never watched that video, click here to watch it.

00:14:21.120 Take care, everybody.

00:14:21.840 Bye-bye, bye-bye, bye-bye.

00:14:22.560 Bye.

00:14:23.500 Bye-bye.

00:14:24.220 Bye-bye.

00:14:25.160 Bye-bye.

00:14:25.640 Bye-bye.

00:14:26.260 Bye-bye.

00:14:27.660 Bye-bye.

00:14:27.760 Bye-bye.

00:14:28.160 Bye-bye.

00:14:28.760 Bye-bye.

00:14:30.300 Bye-bye.

00:14:32.380 Bye-bye.

00:14:34.660 Bye-bye.

00:14:37.120 Bye-bye.

00:14:37.340 Bye-bye.

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00:14:49.720 Bye-bye.

00:14:50.540 Bye-bye.

00:14:50.720 Bye-bye.

00:14:51.340 Bye-bye.

Valuetainment - October 05, 2022

How The Mighty Fall - 5 Stages Before A Company Goes Bankrupt

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