Young and Profiting with Hala Taha - Robert Glazer: How to Build a Winning Team and Culture | Entrepreneurship E270

Episode Date: January 29, 2024

Robert Glazer knows something about how to maintain performance while scaling a business. After his company Acceleration Partners grew quickly from 7 to 300 employees, Robert knew he needed to figure ...out new ways to maintain employee satisfaction and performance. In this episode, Robert is going to share some easy steps you can take to start building the capacity of your teams and employees today.   Robert Glazer is the Founder and CEO of Acceleration Partners, a global partner marketing agency. He is also the host of the popular podcast Elevate, as well as the author of the inspirational newsletter Friday Forward and of six bestselling books including Elevate. His latest book is called Elevate Your Team.   In this episode, Hala and Robert will discuss:  - The early days of e-commerce - Letting his first successful business die out - His passion for teaching other entrepreneurs - Building his email newsletter from scratch - Capacity building and pursuing your potential - The epiphany he had in his shower - Why your top performers can change - How to scale your business without breaking it - Why he doesn’t like personality tests - Creating a culture of learning in your company - Giving effective feedback - The problem with compliment sandwiches - And other topics…   Robert Glazer is the Founder and Chairman of the Board of global partner marketing agency, Acceleration Partners. A serial entrepreneur, award-winning executive, bestselling author, and keynote speaker, Robert has a passion for helping individuals and organizations build their capacity and elevate their performance. He is also the host of the popular podcast Elevate, as well as the author of the inspirational newsletter Friday Forward and of six bestselling books including Elevate. His latest book is called Elevate Your Team. Sponsored By: Shopify - Sign up for a one-dollar-per-month trial period at youngandprofiting.co/shopify HelloFresh - Go to HelloFresh.com/profitingfree and use code profitingfree for FREE breakfast for life Nom Nom - Go to youngandprofiting.co/trynomnom for 50% off your two-week trial  Coda.io - Head over to coda.io/profiting to try Coda for free Indeed - Get a $75 job credit at indeed.com/profiting   More About Young and Profiting Download Transcripts - youngandprofiting.com  Get Sponsorship Deals - youngandprofiting.com/sponsorships Leave a Review -  ratethispodcast.com/yap Watch Videos - youtube.com/c/YoungandProfiting   Follow Hala Taha LinkedIn - linkedin.com/in/htaha/ Instagram - instagram.com/yapwithhala/ TikTok - tiktok.com/@yapwithhala Twitter - twitter.com/yapwithhala Entrepreneurship, entrepreneurship podcast, Business, Business podcast, Self Improvement, Self-Improvement, Personal development, Starting a business, Strategy, Investing, Sales, Selling, Psychology, Productivity, Entrepreneurs, AI, Artificial Intelligence, Technology, Marketing, Negotiation, Money, Finance, Side hustle, Startup, mental health, Career, Leadership, Mindset, Health, Growth mindset,Leadership, Productivity, Networking, Goal Setting, Time Management, Problem Solving, Decision Making, Leadership Skills, Strategic Planning, Mindset, Time Management, Team Building   Learn more about YAP Media Agency Services - yapmedia.io/

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Starting point is 00:00:00 We have way too much focus on hours and inputs and not outputs. I've talked to people who still have PTSD from being told they weren't strategic or they weren't funny. A lot of feedback is way too personal. Robert Glazer, founder and chairman of the board of acceleration partners. He's on Glassdoor's list of top CEOs, a best-selling author and host of a top 0.5% podcast globally, the Elevate podcast. Sometimes people recommend to give a compliment sandwich. It's actually a worse practice. Again, we don't like to give hard feedback.
Starting point is 00:00:34 So we warm them up with a compliment. Then we kind of say the thing that we want to say, and then we kind of end with a compliment. The people just miss it. They miss that that was the important part. There's times to compliment. But you particularly were talking about a conversation where someone's job might be on the line.
Starting point is 00:00:49 You want to be really clear and make sure that they understand that and that they aren't confused. We have societal burnout going on right now. So you can try to work people to death, but you'll have to find new people, and they're all tired, too. And the way to fix that is... What's up, young improfitors? Welcome back to the show. We've got a super insightful conversation in store for you all.
Starting point is 00:01:25 We're going to be talking about how to build capacity within our teams with one of the best in the business. Robert Glazer is the founder and CEO of Acceleration Partners, a global partner marketing agency. He also is the host of the popular podcast, Elevate, as well as the author of the inspirational email newsletter Friday Forward and his best-selling book, Elevate. Robert is passionate about helping people and organizations elevate their performance and reach their true potential. Today, we're going to be discussing his latest book, Elevate Your Team, and Robert is going to share some easy steps you can take to start elevating yourself and your teams today. Welcome to Young and Profiting Podcast, Robert. Thanks for having me. Yeah, I'm super pumped for this conversation and I really want to
Starting point is 00:02:08 get into all your work with elevating teams. But before we do that, I was hoping our listeners could get to know more about you personally and professionally. Now, you've done a lot as an entrepreneur. You founded the product review website, Bobby's Best, Brand Cycle and Acceleration Partners, which is a partner marketing agency. And everything seems to fall into this intersection of e-commerce and marketing. So I thought we could start there. Where did you first get your passion for e-commerce and marketing? And how did you hone your skills in that area? Yeah, I think I was probably always a marketer. I think I was born that way. And I ended up after college working at a strategy consulting firm and that started a business incubator project at it.
Starting point is 00:02:53 From there, I went to an actual incubator and then a venture capital firm before going to operate a business. And I think what I realized really early on was I liked fast growing businesses and being part of them. But what I realized and led to a lot of the work that I did was that really at the end of the day for a consumer business, what mattered was, could you acquire customers cost effectively? You'd hear a lot of times people, like, oh, there's someone who does this in this part of the country. But if no one knows about them, that doesn't matter, right? So the businesses that win in the long run figure out how to get customers cost effectively. And that actually eventually led me into partner marketing and a bunch of different things. But I think it was those
Starting point is 00:03:38 insights, fast-growing businesses, and then how do you win in that space? And I started doing that when the whole e-commerce digital DTC boom happened. And so that just sort of became the intersection of the things that I focused on. Yeah, because you've been doing this since 2005, and that was pretty much the early days of e-commerce and things like that. Yeah, that was right before the whole direct-to-consumer revolution. And I remember when this business called CSN stores was launching all these crazy different brands and a hundred different brand. Then then I all became Wayfair and people were first selling stuff online. And then I got very into SEO initially. And that what led me to the product review site, that Bobby's best stuff, was figuring out how do you get people to your site? And then how do you convert them to buy things elsewhere? And that's where I first ran into affiliate marketing and I just became fascinated with it, but also found it ironic that it was so lowbrow when there was an opportunity for the enterprise segment to use the same model. Yeah. And we actually have something in common. So I used to have a website, which was a hip hop
Starting point is 00:04:49 entertainment news site back in the day when I was like 25 years old. And it was actually really popular. And it doesn't exist anymore because blog sites just aren't really that popular anymore. And things are always evolving. And it seems like that's pretty similar to what happened with Bobby's best. Can you talk to us about that origin story, that company, and what happened? I was always the person. I had consumer reports. People would ask me for everything, like, which TV did you buy, which whatever did you buy, like otherwise. And so eventually I was like, this feels like a job. So why don't I set up a website and I'll pick one thing for each category? And I started having kids. And so people were like, okay, can I have your baby list and all this stuff?
Starting point is 00:05:34 Also got a lot of interest in these life cycle markets with the same people, whether it's weddings or babies or certain milestones are going to be looking for the same things at the same period. So I set up this newsletter, but then I also set up a website. This was kind of the birth of SEO. And I realized, oh yeah, there's the thousand people I know, but there's the hundreds of thousands I don't know. So how can I rank for these things? And then particularly getting the deals on these things. And I think a lot of my friends thought it was just the silly kind of newsletter, but I was ranking tremendously high around certain products and deals and discounts and making a ton of money. And no one realized it. I kept it very down low. But like anything,
Starting point is 00:06:18 eventually you had Retail Me Notts and big sites come in and the customer shopping. And I just couldn't keep up. And I was also building acceleration partners. And so look, some things are designed to be cash cows. Some things are designed to have enterprise value. At some point, I just had to make a decision, do I keep doing this thing or do I build a bigger business? And so I just let it die off. Yeah. And that's nothing to be ashamed about. I brought that up because that's what it is being an entrepreneur, especially in the digital world. It's understanding when something's not hot anymore and it's not going to scale moving on to the next thing that's going to have enterprise value like you mentioned. So with acceleration partners, I know this is
Starting point is 00:06:57 an agency that still exists. You actually did create a company brand cycle that you sold. Correct me if I'm wrong. Talk to us about those two businesses. What were you doing? And how did they grow? It was all connected. One of the things that I was doing incredibly well with was I was working at a company, this company called Tiny Prince, which did the first high-end photo baby birth announcements. And I hooked up with that company and I was their biggest affiliate. And I went to the founder and I met him and I was like, because I worked. worked at a business that was oriented around babies and parents. I said, look, I'm doing all this and I'm brokering deals for you, but like you could set up an actual affiliate program. And he said,
Starting point is 00:07:37 I have no clue how to do that. And so I researched it. And I was an affiliate, but I didn't know how to run in a program. And I was like, all right, I'll try to set this up for you. I looked around and some of the networks, what they were doing didn't make sense. Everything was deals in coupons. And that program, we went out and we just found all these mom bloggers and baby bloggers and they love this product. And they were making a ton of money. And the program grew like crazy. And eventually they sold for hundreds of millions of dollars to shut or fly. And what happened was, I was running that program and then I got another referral. And the people from that company, as happens in the Valley, they had great success. And they went elsewhere. And then people started
Starting point is 00:08:17 calling and saying, can you do that same program we had at Tiny Prince? And they had a wedding site, wedding paper divas. And so classic story, I did. it and then I got one person to help me. And then we kind of went into the affiliate industry that was very focused on lowbrow, coupon, loyalty, no one having any clue with our partners were and did the first, let's go find content partners and people related and build high quality programs and make sure there's no fraudsters in it and kind of this white glove program. And at the time, most people was more in the weeds, but they went to their network and they got the technology and the agency.
Starting point is 00:08:53 And we basically said, you don't go to Facebook, you know, to be your Facebook agency for obviously reasons. You don't go to Google to be your search agency. You really should keep your agency that's focused on ROI separate from your technology. And we help start this industry of independent agencies that manage affiliate partner programs. And we helped drive and expand that industry into the high-end white glove. There was always the email offer, but this was the targets and the eBay's and the Ubers. and people wanting to run very global, high-quality partner programs
Starting point is 00:09:25 that had hundreds or thousands of partners in them. That's so awesome. Robert's actually in my podcast network. And this is one of the first conversations that we've had together. And I love finding out that you have this awesome agency with doing partnerships because it's so similar to what I do at Yap Media, but just with affiliates. But it's very similar to running sponsorships and things like that.
Starting point is 00:09:49 And at least working with the same brands. utilizing influencers and things like that. So it's just cool to know your background and get to know you better like that. Yeah, and the influencer stuff's now crossing into the partner stuff. And when you think about if you're an advertiser, you can buy a click or an impression, but if you can just pay on performance,
Starting point is 00:10:06 you know, if you could enable all of these people and it's coming to podcast a little bit. So brands are excited to pay for marketing after they get a sale. And so we are now over 300 people global. We partner with a private equity firm a few years ago and we help run some of the biggest programs in the world. Awesome.
Starting point is 00:10:23 That's incredible. And so you're obviously a very successful entrepreneur. You are on Glassdoors list of top CEOs. Like you just mentioned, you built an agency with nearly 300 employees. But now you're moving into books, podcasts, and you're basically teaching entrepreneurs. And I do the same. You know, I've got companies. And then I also love to teach entrepreneurs.
Starting point is 00:10:45 So what drives you there? Why do you feel so passionate about teaching entrepreneurs? is how to be more successful. Yeah, so a couple of things. I've identified my sort of core purpose is to share ideas and help people grow. And so when I figure out something, I kind of want to share it. And so building the company and trying to build a company that had a great culture and was a place I wanted to come to work every day, we broke a lot of rules and we did
Starting point is 00:11:09 things differently and we felt like it really worked. And so I started writing about those things and talking about those things. The big tipping point for me was after a leadership training, was talking a lot about the importance of sort of reading something positive in the morning and writing something positive in the morning. We had about 40 people at the time and we were all distributed. And I decided to start this newsletter, which I changed the name or this note like five times. It was a Friday thing.
Starting point is 00:11:36 And it was not about work. It was not about our business. It was about just getting better or something about improvement. I didn't have the term building capacity at the time. And I started just sending this note every Friday to our team. And I honestly didn't think that anyone was even reading it or cared. But people started to write back and they said, you know what? I really love that or I tried that or I did that.
Starting point is 00:11:56 Or actually, I sent this to my brother. I sent this to my, you know, husband. He forwarded along. And I was like, huh, I wonder if people outside the company would be interested in this. I was at an EO and Entrepreneurs organization event. I was telling people as a best practice that this was something I did and I was getting good feedback. And they all said, oh, we'll send it to us. And so I threw them on there. And three of them were like, this is great. I'll just send this to my employees every week. And the fourth one started his own and still
Starting point is 00:12:21 doesn't. And I said, huh, so maybe, I don't know, I'm managing this to BCC. People are asking me. I wonder if people would be interested in this outside the company. So I took like 300 of my friends and family. I created a newsletter list, but it just looked like a regular email. I just couldn't manage it anymore. I threw everyone on. I waited for the hate mail, like what the hell is this, take me off or otherwise. But I kept getting great comments. It kept getting forwarded. So I called it Friday Ford. Three or four years later, I woke up and there's 100,000 people in 60 countries signed up for this email every Friday. And I've been doing it for eight years. And so that led to a book sort of on the Friday Ford. And actually that book was rejected, which turned I went back and wrote the elevate book.
Starting point is 00:13:05 So there's a whole story with there. But that simple email every Friday now built a mold. multi-100,000 news. I think I just look like 140 countries now, people reading every week. Yeah, I get that email. So what a cute story. I love that you shared that. When I was looking at your background, I saw that you got a really interesting major in college. You studied industrial psychology. And I had to look that up. And I found out that was the study of behavior of employees in the workplace. And when I was thinking about all of your work and building these companies and building such big teams
Starting point is 00:13:41 and now writing books about teams, I have to ask, did you always have a passion for teams and how did this learning in college really help set you apart from other entrepreneurs, do you think? You know, Steve Jobs had this quote about the dots connecting and only in reverse.
Starting point is 00:13:59 So I went to school, super competitive business school. I didn't get into the business school initially. You can't really transfer, but I wanted to take advantage of it. And so I ended up creating my own major focusing on the sort of team human behavior side and then the business fundamental stuff. This may resonate with you deeply. But having now run professional services firm for over 20 years, all the business fundamental stuff is so, like I could have been a psychologist and it would have been the sort of same background.
Starting point is 00:14:28 Because in a professional service business, your product is people, your customers are people, your partner are people. No one ever calls me and tells me a machine is broken, a widget didn't come in otherwise. So I do feel like a professional psychologist in some ways. It's always a human issue. So that side of it was super helpful. And obviously the business kind of fundamental and basic and management accounting is helpful. But particularly in where I landed up in professional services, it just worked out perfectly. I really think that's so awesome that you were able to go to school, learn about that.
Starting point is 00:15:04 later on it connected the dots, but I bet you like you were saying, in the process, probably didn't feel like you were using what you learned in school, but later on, you probably look back and think, oh my gosh, how everything comes full circle. It is interesting. And we spend a lot of time on people and capacity and helping people build and develop leadership and really passionate about that. And when you really get into it with people, it's a lot of personal things that are holding them back and things that they carry with them and things that have nothing to do with the workplace. And the more that you have these discussions and kind of authentic and vulnerable with people, you see a lot of those same pattern.
Starting point is 00:15:43 So I feel like at this point, I almost have a psychology degree. How people work and react in teams and personality types and all of that stuff in communication styles, that's all the stuff that shows up day to day in the workplace and leading and management. I totally agree. let's move on to your book Elevate. And in your book, you spend a lot of time talking about four life-changing principles or capacities. And you talk a lot about this concept of capacity building.
Starting point is 00:16:15 You touched on it earlier in this conversation. So let's start there. What do you mean by capacity building exactly? There's a short and a long definition. Capacity building is the method which individuals seek acquire and develop the skills and ability. to perform at a higher level in pursuit of their potential. That's during my long-winded. The short thing is I think this is actually the formula for how we get better. And it's not about doing more. It's doing the
Starting point is 00:16:40 right thing. It has four pieces. And if you can imagine four quadrants of a ball, spiritual, intellectual, physical, and emotional. And I'll explain each one. But to me, it's, if you're working on those things and growing them, you have this ball, bigger mass that's rolling. When one of these gets out of whack, you can imagine it kind of flying all over the place. But these, to me, are the four things of how we improve. So spiritual capacity is not religious. It's about understanding who you are, what you want most and the standards you want to live by. I think for most people, it's their core values and what it is they value at their core. Intellectual capacities about how you improve your ability to think, learn, plan, and execute with discipline. This is like your personal operating system. Like,
Starting point is 00:17:22 how do you get better at something? How do you learn something so you do it better tomorrow and faster and smarter and don't make the same mistakes. Physical capacities, your health, well-being, and physical performance. And then emotional capacity is how you react to challenging situations, your mindset, and the quality of your relationship. So if this was a race car, spiritual capacity would be designing it, intellectual capacity would be building it. Physical capacity would be like taking it on a practice track.
Starting point is 00:17:49 But then emotional capacity is like what happens when other people are driving their cars are 200 miles an hour, right? Now it takes on a whole different thing. And so I think for all of us working on those four pieces interconnected or how we improve, and we're always a little at-a-wack, but some of us are really out of whack in a couple of these areas. So you wrote this book in 2019, and like you just mentioned, it's all about how to elevate yourself, leveraging those four principles that you just mentioned. You had an epiphany in the shower where you realize that these concepts fit perfectly with material around T-Eye.
Starting point is 00:18:25 and the work that you know around teams. So talk to us about that epiphany and what led you to write Elevate for teams. Elevate actually was a Friday Ford compilation that got rejected because the editor said, look, you've already written all these things. I love the compilation, which I ended up writing later, but like what's the story behind the story?
Starting point is 00:18:43 And when I realized all these Friday forwards that I read, what were the themes? And so I went and extracted them. I said, oh, each one of these things touches one of these themes. And this is actually the process I've used to make huge improvements in my life and what I've seen other people do as well. The people I see killing it have these four elements. Well, then at the same time, we were really struggling with
Starting point is 00:19:04 the company was growing really quickly. Some people were growing along with it or even getting better. Some people were kind of falling off the cliff, as I'm sure you've seen as your organization grows fast. And I was super frustrated. I couldn't figure out who was who and which was which and why that was. And eventually, I realized it was actually the same formula and that the people that could grow with the company, had built the ability to build their capacity at an equal or greater rate to the organization, and that actually we had been training around these four things, and we had been focused on this in leadership development. We just not consciously, and I didn't have the words or otherwise. So once we had the words, we could really double down on it. So what changes in
Starting point is 00:19:44 that context, kind of same formula, but for teams, is that spiritual is about helping make sure your teammates understand their values and what's important to them because they're not going to become great leaders if they aren't introspective or self-aware. I think level five leadership, as Jim Collins defines it, requires you to be who you are and be comfortable with that. A lot of us start out in leadership and we take a bunch of best practices from other people that we saw and a bunch of things we hated about bosses that we had and we mash it together, but it's not super authentic. Intellectual capacity in the workplace is about creating this culture of learning. and feedback and growth and people who want to get better and want to improve and otherwise.
Starting point is 00:20:25 Physical and emotional is, again, are we creating environment that lets people maintain good physical and emotional capacity? Are we destroying it? Are we burning people out? How do we create an environment that is about results? It's not about hours worked. And then again, doesn't burn people out. And then emotional capacity in the workplace, a big degree of that is psychological safety, right? Are we creating a workplace that is psychologically safe? Are we getting teams that focus on the things that are vulnerable, that are talking to their team, and that focus on the pieces that they control and not the pieces they don't control? And look, we see this a lot, and you probably seen this in organizations, and I think this gets fostered by leadership.
Starting point is 00:21:06 There are sales teams. They've never lost a deal that was their fault, right? And this gets permitted. We got screwed by the partner. We got screwed by the client. They're just not even looking at what they did wrong or what they could do better last time. And so that's something you either allow in your organization or you don't allow in your organization. At Yap, we have a super unique company culture. We're all about obsessive excellence. We even call ourselves scrappy hustlers. And I'm really picky when it comes to my employees.
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Starting point is 00:23:56 because as an entrepreneur, all you want to do is just get your team more productive, working smoother, having a better company culture, and this is all the stuff that you preach. And one thing that I want to dig a little deeper on
Starting point is 00:24:07 is this idea that you were just sharing about how your top performers don't always stay your top performers. performance. And as an entrepreneur, I've experienced this where I've had somebody who was like a clear A player crushing it. And then like two years later, what happened to X, Y, Z? Just making errors or whatever it is. And I've been an entrepreneur for four years now. A real, I was an entrepreneur when I was younger, but like a real renewed entrepreneur for four years now.
Starting point is 00:24:34 You seem like you were born one. Yeah. I was. I had a lot of day. It was. But with Yap Media. And I've even noticed that people have like on and off years now that some people have been working with me for four years. One year they're a rockster, one year they're not. One year they're a rockster, one year they're not. So just curious to hear your thoughts about how we can scale with our team. What kind of team players should we be looking for who can actually scale and be top performers year over year? Yeah, there's so many different ways to answer that. Let me start at a high level, which I think we're coming off this extraordinary period.
Starting point is 00:25:08 So for anyone who's 32 or under, the last 10 years before the last two years, they might think that that was normal, but historically it was an aberration. It was free money. It was hypergrowth. It was you didn't have to make money. It was valuing the top line. And so the goal was just grow the business. And if you destroy the people along the way, that's fine. My analogy is if NASA said, hey, we're going to put a crew on Mars, thing flies to Mars and they open it up and everyone's dead.
Starting point is 00:25:38 dead, I don't think everyone would be cheering, right? But this was sort of how companies ran, where we're just going to hit this goal and it doesn't matter. That's gone. People are burnt out. The money's not there. We're not valuing the top line. So now we have to build companies by building the people. You know, if you picture growth is like a wave, instead of being crushed by the wave, we need to ride the wave. And the way to do that is make sure that they're building their capacity and growing with your business. And it's kind of a win-win, not a win-lose. So to what you were saying before, my definition of an A player, it's not an absolute. You've seen people grow into ones and out of ones and cycle.
Starting point is 00:26:16 It's the right person in the right seat at the right time. And when your business is changing that much, the seat's changing. And some people don't want that next job. So some people, they're good from zero to five million and they need to do that again. But some people just aren't improving at the rate they need. If your business is growing 40% a year, the leader of each of those. functions needs to grow 40% a year just to stay at that job. That's a really hard thing to do. So I think we should do everything that we can do to help our people grow with the businesses.
Starting point is 00:26:48 But then we also have to make those hard decisions when the job just isn't the same job anymore. And I think a lot of people, the job has changed, but they're afraid to admit that and they don't want to do it and they don't want to give it up. But frankly, that's where the leader has to come in and say, I don't think you want to do this. Let me help you find something else, somewhere else. This isn't the same job it was two years ago. I love that. Right seat, right person, right time. That is so brilliant.
Starting point is 00:27:15 I love that so much. Okay, so in your book, you say that every time you double a company size, you break 50% of your processes and 50% of your people. So my question to you is, do you feel like that's inevitable or is that something that we can prevent? I think you can prevent it, but that's what coaches always told me. And that was sort of why I was like, I don't want to. do that. I don't want to change the tires every two times around the race course. So how do we focus on
Starting point is 00:27:42 finding high aptitude people and creating a culture where we have all these things, where we have introspective and learning and we're not burning people out and they're growing? What's exciting to me is when people always grow and take that next seat and when you build from your draft class because it's just like sports. The overpaid free agents often aren't worth the money. It's better to build through the draft. So the book talks about really all the things. that we can do to try to give ourselves the best shot of building from the draft, the goal is to do better than that number. I don't think it's fun. You don't want to break half your people every two years, right? I mean, you want to be in the battle with these folks. And understanding that over time,
Starting point is 00:28:23 yes, people will cycle in, they'll cycle out. The 50% rule was presented to me. And a lot of this was how do we not fall into the 50% rule? You talked a lot about how to prevent the employees or focus on the employees, but how about the process piece? What is your guidance in terms of preventing your processes from breaking as you're scaling? We have a core value of excel and improve, and I always explain it to people that excellence requires improvement. So if we have a best practice way of doing something and you have no clue how to do it, you probably should use that. But you also need to be constantly looking at changing that or improving it. The thing is, improve the operating system for everyone. Don't just improve it to yourself. That to me is the
Starting point is 00:29:04 excellence and the standardization. But we should always be looking at every process we have and blow it up and make it better and roll out the new code to everyone. When you move away from excellence is when you're running 4.0 and I find 5.0 and hold it to myself and then Sally find 6.0, right? You want Sally to find 6.0 and then tell everyone running 4.0 and 5.0 to upgrade. So to me, everything has to be revisited. I tell an onboarding culture story about one of our core values about one of our best traditions in the company and this award ceremony. And it just went from nice to not working as we went from 10 to 75 people. And we had to totally reinvent it to bring back that special piece of it again. And then three years later, we had to reinvent it again. So that's always going to happen.
Starting point is 00:29:49 I totally agree with that, reevaluating and always looking to improve your processes, even when things are going well, right? That is the time where you can do that because you actually have the time and there's no fires. And that requires that psychological safety, right? It requires a culture. where people can say, this is broken, we need to fix it. And they don't get the, it's always been that way it works. Leave it. Yeah. So you have four components in Elevate for both the individual capacity and the team capacity,
Starting point is 00:30:17 spiritual, intellectual, physical, and emotional. And we talked about that previously, but I do want to spend a little bit more time on each one of these areas. So let's start off with spiritual. And I know that a lot of people cringe when they hear anything that has to do with I know you said it doesn't have to do with religion, but they just cringe. So what would you tell to people who are like, what does that have to do with business? If you don't know what your core values are, you don't realize how much they're driving your behavior in leadership and in life.
Starting point is 00:30:49 We just did this with a group of leaders and two of the people in the organization were really struggling with each other. The root of both of it was childhood experiences that strongly impacted their values and how they behave. So I can give you an example of this. Let's imagine we have a lot of people, when we've done this process, they have a core value of trust. For most of those people, there were some violation of trust in their life that made trust really important. But that's their operating system. That's how they operate. They trust their team.
Starting point is 00:31:19 They keep them close. They have a small circle. What was happening was a leader who has, and every time this has come up, when you ask them this, if someone on their team was a little bit late, missed a deadline, couldn't be found at 4 o'clock, that strikes like, this is someone who can't be trusted, and they put them in a penalty box and lock the key, and these people didn't know about it. So once they have that awareness, and when they understand these things about it, they would go to their team and say, look, how you're my new employee. Trust is really important to me, and I am going to give you trust and you're in my circle, but by the way, once it's broken, it's broken. And here are some of the things where that can happen.
Starting point is 00:31:55 Well, now you're leading with that and you're using that. So I think there are a lot of these things that, again, I tried a hundred words and I know spiritual. It is just about understanding yourself, honoring your standing your strengths, your inclinations. They're all different for each of us. Honoring that, understanding that about other people, because most issues are communication issues. And then using that to your advantage to be the kind of leader that's authentic. I am a totally different leader than the other people in my organization. And I would say, I'll say to people, this is why you'll hate working for me or this is why you'll like working for me. It's the same thing. So I'm just going to lay it on the,
Starting point is 00:32:31 the table for you and you can decide. It is really important when you're managing teams to have that alignment with core values. I actually did a exercise with Darius Marizazadeh, who is our mutual friend. And we did this whole workshop with him. It was like a three week long process. And we have core values now. And my team culture was always strong at Yap because we started as a volunteer group from my podcast six years ago. And it was 20 people for two years, for free for me. And when we were volunteers, it was just easy. We had a culture because we were just doing it for free. We all had the same passions. And as we evolved as a business, I start to feel like we lost some of that culture that was just ingrained in us because we basically all started this
Starting point is 00:33:16 together. So we started these core values. We rolled them out. And it's been so impactful to just have clarity, writing them down, communicating them to your point when we're doing hiring. We're judging people based on if they fit or not. And it's just helped so much, I think, with reducing employee attrition and everything like that. Yeah, and Darius is really good. And I've done some work with him on the business ones. Yeah, I ended up creating a course on the personal ones,
Starting point is 00:33:41 which align. Like, if people understand their personal core values, they will align mostly if you get the right person to YAP's core values. So we did that with so many leaders. And when they read Elevate and they talked about, okay, I buy this personal core value thing. I want to figure out mine. How do I do it?
Starting point is 00:33:56 And I was like, it's not that easy. I have a whole process I do with the team. Like, well, can you share that with us? I was like, I don't really have a great way to do that. So I turned it into a course and over 2,000 people have taken that and just figured out their personal values. Amazing. Can people take it now? Yeah.
Starting point is 00:34:13 I can go to core values course.com. And I'll set up something if they get a discount if they put Hala in there. Cool. Awesome. I'll put that in the show notes for everybody. So speaking of getting to understand who you're important. are in their own values and personality traits, you actually are not a fan of personality tests, or at least the obvious ones. How do you suggest that we evaluate our employees and see if they
Starting point is 00:34:38 align to our values? Yeah, so I've taken all of these, and I'm not a fan of them. I actually, I love them, whether it's disc or values or Colby or any of these things. I just don't think they should be used for interviewing, because what happens is you have this bias where people go for the same as them and you actually want a team that's different, but it's super helpful for me to know that you are an S or I am a D or other, because it helps with all the communication stuff. So I don't think you should use them for hiring. I know Adam Grant, some people have said, look, I don't really see them as personality as much as they are your styles or your preferred form of communication or the way you kind of operate. I don't look to put someone in a hole, but they are incredibly,
Starting point is 00:35:20 we've done the Y stuff with Gary Sanchez. And when two people are in like a real argument, I first go to that information. What are your whys? What are your, I'm like, oh, this is why you're doing this. Understand this because there's some just natural conflict points between those two different profiles. And yeah, we've done a lot with Gary Sanchez and his why archetypes. I have found those to be the most accurate as the behavior that drives people at their core. Oh, I got to look them up. I've never heard of them. I got to check that out. He took Simon Sinek's now find your way. So Simon got everyone convinced that they should know their why,
Starting point is 00:35:57 but then going to figure out your why is like not an easy thing. And Gary developed archetypes, nine specific Y archetypes by interviewing thousands of people. And so I feel like Simon kind of wound it up and Gary actually made it doable for people because he gives you an archetype and the strengths and weaknesses and all that stuff. Oh, awesome. I love that. Okay.
Starting point is 00:36:17 Moving on to number two, which is intellectual capacity. Can you talk to us about why creating a culture of learning is so important? And what are some actionable ways that we can facilitate learning within our organizations? Yeah. So first, for all these things, people are the same inside of work and outside of work. They're not really good with money at home and super energetic and walk into work and are terrible with budgets and exhausted. These things are consistent. And so I think learning cultures and feedback cultures are how you get better and grow.
Starting point is 00:36:49 So simple things like having a book club or I have to say podcast club because it's free. We pick an episode, we listen to it, we talk about it, we talk about how we can do something better. We also focus on what are healthy routines? What does a good morning routine, you know, look like? We do a lot of how Elrod's Miracle Morning. Because again, if your people are well rested, if they're taking care of themselves, they're going to come to work better, a lot of two is feedback and learning how to have these difficult
Starting point is 00:37:18 conversations and framing it when you're growing around, this is about learning and not making the same mistake. And so many people don't know how to have these conversations that they put them off and then they lead to even worse conversation. So we even have a whole module and we talk about some of it in the book around how do you practice having these difficult conversations so that you don't wait too long to have them? Yeah, difficult conversations are definitely going to come up in business all the time. and it's really important to understand how to give feedback. Talk to us about how feedback can be really damaging sometimes if you don't know how to do it effectively.
Starting point is 00:37:55 Yeah, most companies don't train and people don't train on how to give it and how to get it, right? And a lot of feedback is way too personal. One of the things you should never do is tell someone they are something or they aren't something. I've talked to people who are five and 10 years later still have PTSD from being told they weren't strategic or they weren't funny.
Starting point is 00:38:15 strategic is a perfect one. Telling someone they're not strategic doesn't feel like something they can fix, explaining to them, hey, in the report to the client there, these are the places where more strategic insight was, now it may be true that they're not strategic, but if you're trying to give feedback, you need to explain what strategy looks like and examples of how they can improve it.
Starting point is 00:38:36 So it should always be depersonalized, just like in parenting, you should never tell someone they're smart or not smart. You can say something they did was smart or something, something they did was not smart. And one of the frameworks I like is really simple, SBO, situation, behavior, outcome. What happened? What did you do? And then what was the result? What was the outcome? And why is the outcome matter for you? This happened on the call today, and I think you really want to fix this because you're going to lose the sale or people aren't going to want to work with you or, you know, and not have it be sort of about me. So that's the
Starting point is 00:39:09 giving. On the receiving side, particularly upward feedback, the first time you're not receptive to feedback, it'll be the last time you get it and people will just go tell everyone else, you know, not you. So I think you have to make it clear that your door is open and you're always willing to feedback. You have to just shut up and listen. If you try to formulate your response as the person is talking, they can tell you're not listening. You're getting into, you just have to listen. Even if you don't agree with it, you just have to listen. And then you have to thank the person. And then you can take your time to reflect. You can act on it. You can follow up or not. But doing those three things like my door's open, just listen.
Starting point is 00:39:44 and thank them, means that people will come and share things with you. Otherwise, they won't. And I would much rather have someone tell me a problem to my face than tell everyone else about it. Yeah. It takes some emotional intelligence to just be positive and process it afterwards. And it doesn't mean you have to take all the feedback. It just means that in the moment, as a leader, you accept it and act professional and
Starting point is 00:40:09 positive. Yeah, that person feels heard. They don't feel like you're fighting with them and arguing with it. So you just have to, again, eat the key, swallow it and just listen to it. Yeah. We've talked a lot about getting feedback on the podcast. I had Kim Scott on the show. I've had Heather Monaghan talk about that.
Starting point is 00:40:27 And sometimes people recommend to give a compliment sandwich, right? So say something nice. Say the mean thing or the thing that needs improvement. Say something nice. And you're not really aligned with that, right? So what do you think is wrong with that approach? It's actually a worse practice. And our training around this where we model fake conversations where boys have to sit down and they only know one side of the story and not the other side and you watch what happens, you see how poor it is.
Starting point is 00:40:55 Because how many conversations, has someone told you about? We're like, yep, I talked to the Paula. I gave her her warning. She understands. And then Holla's like, I thought everything was going great. And what happens is when you watch people do this, again, we don't like to give hard feedback. So we warm them up with a compliment. Then we kind of say the thing that we want to say.
Starting point is 00:41:16 And then we kind of end with a compliment. And people just miss it. They miss that that was the important part. And I've done this training a hundred times after one of these scenarios. And we asked the group of everyone watching and we say, how many people think that that person knows that their job is on the line? And no one has ever raised their hand after doing this training. Because the default of the person is to kind of launch that in.
Starting point is 00:41:39 When they do it again, it totally changes. I have the kind of couple lines in the book, and the last time I had to do this, I just did this. And I got in and I said, this is going to be a really difficult conversation. I need to tell you some things. So now there's no sugar coding it. There's times to compliment and otherwise. But when you particularly were talking about a conversation where someone's job might be on the line, you want to be really clear and make sure that they understand that and that they aren't
Starting point is 00:42:05 confused with good, bad, good. Totally. Because I could imagine how that could be confused. and people actually remember the last things that you said to them more than the first and the last things and they lose the thing in the middle. Like, that's a proven fact to your point. So you're basically leaving the most important part in the part that's the easiest to forget. I totally agree that.
Starting point is 00:42:27 That's probably not a great way to do it. Can you give us some real examples of giving somebody good feedback? What does that sound like? I'll give you the example that I use in my training. And this is kind of, I like to use law and order. ripped from the headlines. So years ago, we had an employee who was very cerebral and let's just call this person, Jamie, and like to think through things before answering, but they were in a client service role. So several times in a week, they had been on a call with their manager, and the client
Starting point is 00:42:58 asked a question, and there was awkward silence for like 10 or 20 seconds. So manager could say to Jamie, Jamie, there were two calls this week. You sound like an idiot when the silent was so awkward for me. It was awkward for everyone involved. That's the classic personal attack. It's bad for me. It's just being mean. The SBO approach would be like, Jamie, I noticed on the call last week twice,
Starting point is 00:43:23 there was an awkward pause after the client's asked you a question. I know that you're someone who likes to think through something, but frankly, I'm worried that the client thinks you're not going to know when you're talking about
Starting point is 00:43:32 when you have that. So let's think of a crutch phrase. Maybe it'd be better for you to say, let me look into that if you need some time and just use that to buy yourself some time and come back, because I know you know what you're talking about, but I'm just afraid that clients going to be worried that you don't. Totally different approach. One is about the
Starting point is 00:43:49 actions, how you can get better, approve, why it's helpful to that person. The other ones is just a personal attack. And I think that's what most people default to on Virginia is the first one. So basically you're saying, don't make it a behavioral thing with them or a personality thing. Make it about the exact action and how they can fix it and just be precise. Give the precise advice about that exact specific incident and don't label them. And why is it bad for them? Everyone cares about why things are bad for them. They don't care why it's bad for you. So when we say something from a place of annoyance or like it's bothering us, that sounds like why is it bad? They care about what, like again, Jamie, you're a really smart guy. I don't want clients to not think that you don't know
Starting point is 00:44:33 what you're talking about when you do. So I think this is the type of strategy you need to bridge that gap. That's wanting to help Jamie do better. Similarly to the not strategic person, look, there was three or four times in the presentation where the client needed some strategy. This is what it looks like. This is what they needed to hear and what they got was tactics. You want to criticize the actions or the behavior, not the characteristic of the person anyway.
Starting point is 00:44:59 And by the way, this is your job as a leader to develop your, employees and the people on your team. And so if you're afraid of giving feedback or you don't know how to give it, people are never going to improve. And it's literally your responsibility to help them improve in their careers. And when I look back at my career, I used to work in corporate and I remember I was a little bit arrogant because I was really productive. I would always just rock everything. And I remember my manager loved me so much. But he told me, call it, your team members aren't going to like you, you've got to be nicer. Basically, he used to tell me, like, you've got to be nicer.
Starting point is 00:45:34 Like, you're too focused, just like a machine. And that's helpful. But I also think your weaknesses are your strengths, you know? Right. And nicer is it nicer is a characteristic, right? So, right. Yeah, that is. Exactly.
Starting point is 00:45:47 So to your point, like, it's like, what does that even mean? But I appreciated his feedback because it at least allowed me to remember to, like, think before I speak or not topple over people if I could avoid. it. Right. And you can say, right, Holly, you're a superstar and you're a high achiever. And so that's going to be threatening to other people. And so you're going to want people on your team and to be supporting you. So here are some of the things you might want to think about to do that, right? That's probably how you'd want to land that message. Yeah. And he probably said it a lot nicer, but like my remembering is that like, you're not nice enough, right? I told you. I can give you a list
Starting point is 00:46:22 of people who they've said, they can remember the person who said to them, I remember a boss who said, wasn't kidding. He said, there's nothing you won't waste money on. But They have this list. It's like a flashbowl memory of what they were told. Happy New Year, Yap, gang. I just love the unique energy of the new year. It's all about fresh starts. And fresh starts not only feel possible, but also feel encouraged.
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Starting point is 00:48:07 Go to Shopify.com slash profiting. That's Shopify.com slash profiting. Yeah, fam, hear your first. This new year with Shopify by your side. Young and Profiters. I know there's so many people tuning in right now that end their workday wondering why certain tasks take forever, why they're procrastinating certain things, why they don't feel confident in their work, why they feel drained and frustrated and unfulfilled.
Starting point is 00:48:34 but here's the thing you need to know. It's not a character of law that you're feeling this way. It's actually your natural wiring. And here's the thing. When it comes to burnout, it's really about the type of work that you're doing. Some work gives you energy and some work simply drains you.
Starting point is 00:48:51 So it's key to understand your six types of working genius. The working genius assessment or the six types of working genius framework was created by Patrick Lansione and he is a business influencer and author. And the working genius framework helps you identify what you're actually built for and the work that you're not. Now, let me tell you a story. Before I uncovered my working genius, which is galvanizing and invention, so I like to rally people and I like to invent new things, I used to be really shameful and had a lot of guilt around the fact
Starting point is 00:49:19 that I didn't like enablement, which is one of my working frustrations. So I actually don't like to support people one-on-one. I don't like it when people slow me down. I don't like hand-holding. I like to move fast, invent, rally people, inspire. But what I do need to do is ensure that somebody else can fill the enablement role, which I do have Kate on my team. So working genius helps you uncover these genius gaps, helps you work better with your team, helps you reduce friction, helps you collaborate better, understand why people are the way that they are. It's helped me restructure my team, put people in the spots that they're going to really excel, and it's also helped me in hiring. Working Genius is absolutely amazing. I'm obsessed with this model.
Starting point is 00:49:57 So if you guys want to take the Working Genius assessment and get 20% off, you can use code profiting. Go to working genius.com. Again, that's working genius.com, stop guessing, start working in your genius. What's up, young and profitors? I remember when I first started Yap, I used to dread missing important calls. I remember I lost a huge potential partnership because the follow-up thread got completely lost in my messy communication system. Well, this year, I'm focused on not missing any opportunities. And that starts with your business communications. A missed call is money and growth out the door. That's why today's episode is brought to you by Quo, spelled
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Starting point is 00:51:13 slash profiting. That's QUO.com slash profiting. Quo. No missed calls, no missed customers. So physical capacity is the third one. And this is about employee health and wellness. So how can we have more work life balance or what are the ways as leaders that we can foster that within our teams?
Starting point is 00:51:33 It's like the Hippocratic Oath and first do no harm. So I tell the story of Marissa Meyer, right? Marissa Meyer came into Yahoo. She was heralded as this top employee at Google. She bragged about her 130-hour work weeks and articles. If you've done the math on mass, that's 18 hours a day for seven days, so barely enough time to even sleep and bought 52 companies at Yahoo and got fired. And the whole thing was an abject failure. Now, there's no question that Marissa Meyer worked hard. but hard work and smart work are different. So I still think we have way too much focus on hours and inputs and not outputs. So I think getting people focused on outcomes and not celebrating heroes, hours, and inputs, because
Starting point is 00:52:18 we're not, I mean, your salespeople, you're happy with if they are making a lot of calls or if they're selling things, right? Which do you want to do? People need time off. They need rest. They need to step away from work. You need a culture where it's okay to take a vacation. and people cover you and you turn off your phone and you come back rested. But if I, the leader,
Starting point is 00:52:38 and look, the leader emulates for everyone, there's a great example. So if I'm going on vacation and I say, hey team, I'm going on vacation next week. But if you need me, Slack me, text me, email me. I'll be on every day. That clearly says one thing and then everyone emulate that behavior. There was an email I saw from a guy at a venture firm and he said basically like the difference of I'm going on vacation. I'm going to be with my family. So, Here's my wife's cell phone and text her if there's a real emergency and she'll find me. And if you need to reach me by email, please use interrupt my vacation at the company's domain.com, right? Sends a totally different message to the team around taking time off.
Starting point is 00:53:20 Another very simple thing I started doing years ago as the leader. Look, I would get up when I had little kids and I'd go through emails on a Saturday and as the CEO of the company, you get an email from the CEO and you feel like you have to respond. So I started using delayed delivery. So if I'm sending something to anyone, particularly if they're below you, and I don't mean that pejoratively, but I say that because I think people feel a really need to respond to people above them in the org chart rather than peers. And it was like late nine hours or whatever. I just said delayed delivery until 8 o'clock the next day. This also can make you look like a hero on Monday morning.
Starting point is 00:53:56 Your sound asleep and like your email's firing off stuff to everyone. But people appreciate that because nothing's urgent. But look, a lot of our entrepreneurs and our brains either use that tactic. The other tactic I did was I had a one-note thing for everyone on my team. And when I thought of that thing, I just put it in the bullet thing. And I put it in under their list for our next one-to-one. Or if I would send one email with the five things rather than constantly them getting my epiphanies via email. So I think people just appreciate some of those boundaries.
Starting point is 00:54:29 And frankly, they'll be more. more energize. I mean, we have societal burnout going on right now. So you can try to work people to death, but you'll have to find new people and they're all tired too. So I think it's much better to try to focus on outcomes, give people this rest and relaxation and model behavior where they can have life outside of work, but then they come to work and they're all in. Totally. Boundaries are so important. I know we have a global team and so we use Slack. And as entrepreneurs, a lot of us, we don't have the same boundaries because we are the business owners, right? And to your point, you're making sure that your emails are hitting in the morning. When we send Slack messages,
Starting point is 00:55:11 we've got all these little codes like don't need to respond until Monday and like it's like a certain abbreviation or just, you know, respond with an emoji or whatever it is, not needed until tomorrow morning. So we make sure that we write that because with a global team, it might be midnight for somebody and I don't want to look like a crazy psycho boss. Right. You're being respectful. You're also, if you make everything important, nothing's important. Look, there are times when there's a big million dollar proposal and people need to work on the weekend. They need to pull it together. And I'm sorry, that's the trade off. I think everyone wants the flexibility in one way. It's got to be both ways. It's got to be when the business has a core thing, you got to rally around it.
Starting point is 00:55:50 And that's the trade-off. The problem is if you're constantly forcing people to do stuff out of hours when they don't need to, it's hard to rally them around when it actually is something that requires that. This is so true. If you treat your team with respect, then once there's an actual fire, they're going to want to help you till 10 p.m. at night because they just feel like, oh, I love my boss. I love my job.
Starting point is 00:56:11 And they care about what they're doing. They don't feel like you don't appreciate them. They are happy to be a firefighter if you are not the arsonist. Mm, good one. Okay, so emotional capacity, this is the final component of team capacity. What are the ways that we can build openness and sharing into our company culture? Psychological safety, what is that? We hear it a lot.
Starting point is 00:56:33 My definition is it's like trust as scale. So if you and I have trust that we build up, how does someone walk into a team and feel that trust all around? And so there are a couple ways to do that. And there's this exercise called the Johari window that shows that if you ever heard of it, but the two main ways are vulnerability and sharing. Vulnerability is opening up, letting people know things about yourself, having these conversations, building that trust. And then the feedback component is people know that they can speak up and they can speak truth to power. And you talked about that earlier in intellectual capacity, just letting people know they can say
Starting point is 00:57:12 stuff. They can sense when they can walk into a meeting. There was a great tip I heard. I think it was actually Kim Scott who said it. And they said, if you want to know if your team has psychological safety, give them something that's completely impossible to do and see if anyone says anything. A task that just can't be done and see if someone says something. I was like, that's kind of a great idea if you want to see whether people feel comfortable speaking up on your team. The other thing is really getting your team in organization focused on things that they control. Again, when we talk about why we lost a sales deal, we don't talk about external factors. We call the client. We ask them for their feedback. We ask what we could have done better. We focus on the things that we
Starting point is 00:57:56 control. So think about when COVID happened, we give way too much credit, I think, to the initial kernel of something that we don't control, then the whole spectrum that we say this thing happened when it's really not true. The stimulus was not controllable, but the response was controllable. So think about COVID happens, obviously not controllable, shuts down every restaurant in the world. There's a whole group of restaurants who are like, we're not going back unless we can do what we were doing and how we were doing it and we're not changing and otherwise. They're mostly out of business. There was another group of restaurants that were like, signed up for every delivery app, we need to figure out how to do this, started selling wholesale
Starting point is 00:58:33 produce to keep their people going, built outdoor things, and totally changed their business model to survive. They had the same thing, the thing they didn't control, but they had choices about how they responded. Waiting for the external in the world to change is much harder than focusing on the things you control. So I think leaders of great companies get their teams inherently focused on what they control and they just don't let them even use the excuses of external and outside and otherwise. Can you help further define this by comparing and contrasting an organization that has high emotional capacity versus one that has low emotional capacity. How would they act differently? You just gave one, I guess, an example with COVID.
Starting point is 00:59:17 There's a lot of partners that we work with, and they have sales teams. You've seen this a lot with sales, where there was a team that they had never lost a deal that was their fault. It was, we could have teed them up better. It was the partner. They got screwed because it was the end of the quarter. The client didn't call them better. The whole team, it was a cultural thing. They would just always blame everyone else. There's no way that team's getting better or learning from the mistake versus the sales leader who says, let's do a debrief on this deal. What could we have done better? Do we wait too long? Was our pricing wrong? Did we ask the client for feedback? I mean, I have had people ask for feedback before and then fight me on it. If you're going to ask for feedback and fight it,
Starting point is 00:59:57 I'm not going to give it. I'm not going to give it to you. And do we look at all the things that literally, like, why did you go with this other? I was literally like, look, I'm telling you the truth. if you want to fight me on it, I don't need to have this conversation. And then they focus on winning the next time. So again, I do see it a lot in sales. There's another story sharing the book. We actually had a partner, a partner that came in in in our industry. We do the services piece, and then there's people that do the technology piece. Unfortunately, some of the tech vendors still have services. And so there's some awkward conflicts at some point. And then there's some pure play technology companies. Well, it's one technology company come in to the business. They hired a
Starting point is 01:00:34 big agency team. They went and sat down with all the agencies. They never bid for services. And we started doing like a lot more business with them because they just really were doing a good job. And this other one, we kept giving them feedback. Your pricing's too high. Customers want different feedback. There's an awkward service thing. And we were at a conference in London and someone from that organization went up to our team and said, I know for a fact. We know it's a lot of talked about in our organizations that you take kickbacks from this other organization. And that's why you're doing so much business with them. A, we had never taken, I was like, I'll give you a million dollars if you have proof of that. We had never taken any kickbacks and we had been very vocal about
Starting point is 01:01:12 how there shouldn't be conflicts of interest in our industry. Basically, what happened was they were losing a lot of deals to this other company. Instead of actually changing any of the factors about why they're losing the deals, it was just easier to make up this narrative that we weren't working with them because we were getting kick up. That, to me, is low emotional capacity. I love that. So we love actionable advice on the podcast and you have this exercise called One Last Talk. Can you help us understand how that exercise can build emotional capacity? Yeah, there's a book on that if you're interested and we did this at a company event. This is 303 in the vulnerability world, not 101. So if you're trying to introduce vulnerability into your organization, just little things.
Starting point is 01:01:55 When you do a call or a team call like, hey, personal high from the weekend, personal low, professional high, professional low. We did a quarterly thing. What was one thing you screwed up this quarter that you'd like back? Look, sometimes you find out something really bad happened to that person that weekend. And that's kind of what's in their mental space. So mix people up in meetings, start with how's it going? How are you doing?
Starting point is 01:02:18 What's going on? That's the 101 version. 303, one last talk was we had four employees that were coached by Philip McCurnin, who wrote the book at our actual annual company event. And they gave these one last talks. And these are the speech you would give the day before you're leaving the world and the thing that you haven't said, but you need to say. And they were deeply emotional and vulnerable and things that people had not shared anymore and discussed in front of the entire company. And
Starting point is 01:02:45 there just wasn't a dry eye after any of these stories. I mean, one was about someone who had the briccogen and how it weighed on them. Another was about someone who came out. Another person I was leaving their family at a very young age. But the ripple effect at the retreat the next two days of people who were just, like, started having real personal conversations with people that they had worked with for five years and just didn't really know anything about them. I say actually the one downside of it was we had a hard time putting the genie back in the box. At some point, stuff was coming up that we were like, we're not trying to deal with this.
Starting point is 01:03:20 Yeah. The initial reaction was incredible. I think those people felt seen and heard, but it just modeled for everyone. else that it was okay to talk about these things in your life. And so it was really powerful. Again, don't recommend that as a first step. I think you have to have a high degree of psychological safety in your organization to do something like that. Yeah. And I think what you're saying is pretty basic in terms of having that human element and things that you do at work, like making it where you do care about people's lives and what's going on with them. I know with our company,
Starting point is 01:03:53 we have daily huddles for all our different teams. And we start off. with what's your personal high for the day? What's your recognition or success story? It just gets people warmed up, gets people talking. So I totally agree with that. Yeah, and you often find, look, I had one of these yesterday. You know, there's lots of them, hey, how's it going? And you just mean that generally or to a client.
Starting point is 01:04:14 It's always a good, or some people that know really how's it going, some people say. And you know what yesterday? They were like, not good. And I have this, here's the personal thing that's going on my life. It was sort of a checking call, but that's what we talked about for half the thing. That was what on their mind. And if I didn't ask that question, I would be like, why is this person being short and aloof with me today?
Starting point is 01:04:31 And did I do something wrong? But that's just where they were emotionally. And I think I was happy to have that conversation and try to be helpful if I could. Okay. So my last question for you, Robert, this has been such a great conversation. We're talking about how to elevate teams and build capacity within teams. We've got to make smart hiring decisions. In my opinion, making smart hires can like make or break you as an entrepreneur.
Starting point is 01:04:55 Because it's so expensive. Very hard to fix bad hiring. Yeah. Yeah. And it just screws you up, especially when you're going fast. You need good employees that can scale with you. So what is your guidance for hiring best practices? What is your approach?
Starting point is 01:05:08 First, read Jeff Smart book, Who? Because he's the smartest guy on hiring in the world. And he's kind of the expert. And we've built a lot of our things around that. What's his name? Jeff Smart. You should have him on. First of all, he's hysterically funny.
Starting point is 01:05:19 And he's the top. He built the McKinsey of sort of hiring consulting firm. So you might have heard of time. Might have heard of top grading. His dad wrote that book. He was born into this business. I happen to make an intro. So one is, first of all, make sure everyone is agreed on the job description and what good looks like before you posted. I've seen a lot of people, hey, can you have some advice? I want to hire a sales and marketing person. Uh-oh. I'm sure sales and marketing both want different things. So make sure, super clear on the job description. Hiring should all be behavioral-based questions. Jeff will say, if you ask hypothetical questions, you'll get hypothetical answers. And we break ours down into half is around our core values and we have behavioral-based questions around all of our core values. And then half is around the actual job. And there's some exercise or work product or whatever that mimics the work they would actually have to do. And we try to make
Starting point is 01:06:10 it clear that's not valuable. We're not trying to get free work. And people say, oh, I missed that or I didn't. And like, this is the job. You're going to have this same sort of time frame to get this back to a client. We give them a client report that has a lot of errors in it. We see which things they fix and they don't fix. And the people that are natural at that are good at. So we do 50% on aptitude, 50% on values. Do reference checks. Ask hard questions. Don't just give the two people they gave you. Like for senior roles, you have LinkedIn, do some back channeling. People hire people that used to work here all the time that know us that we work with. I'm shocked that they don't ask us on a couple occasions. I would have been like, no comment, you know, and it could have saved themselves
Starting point is 01:06:52 a lot of time and money. So verify that what people are saying to you is true. And in that process itself, don't ignore the little things. Where they have pain to get scheduled with? Did they show up on time? Did they write a thank you note? How did the person sort of behave and operate during the process? And then another best practice that we got. And by you should try to score everyone and make these questions numerical so that you can objectively, you should evaluate a couple candidates at a time, but have someone in the hiring meeting that's disinterested, that's not part of the team that's hiring, that represents the company hat because the people want to hire off and really need the job. They really need that whole filled and they're kind of, and that person's supposed to
Starting point is 01:07:37 represent the company. They're like, you got legs and arms. Let's go. Yeah. They're supposed to be like, look, you keep wanting to hire Sarah, but like you told me detail oriented is important and I'm looking at the things here and detail scores are really low. So it really helps to have that person in that room. and adopting this question is the last thing. Is this person better than 90% of the people? They raise the bar for the company. That really forces you to, just bringing this person in raise the bar for the organization.
Starting point is 01:08:04 And everyone has to answer yes to that. So that's some of them. I talk in the book, too, just about if you want to hire high aptitude people, I have a couple tips around that, the people that are the fast learners, because that's about are they good for the company and the culture. A couple tips are, one, look for people that were promoted in place. These days, a lot of times people are lured away and offer a promotion they're not qualified
Starting point is 01:08:28 for by a new job. If the people that worked with them wouldn't promote them and they couldn't do better in the same place, I don't think that's a great sign. Look for people who are voracious learners. They're learning things. They're improving things. They're telling you about the lessons they did or otherwise. Then this one took me a long time to learn to.
Starting point is 01:08:46 but particularly for candidates that are 10 years into their career, 30, 40, if they left jobs a lot of the time, why they left the job is important. If people pulled them that worked with them before, that's awesome. Well, then Hala pulled me here and then she went to another company and pulled me there, if they're 10 or 15 years into their career and they've never worked with this recruiter before, and it doesn't seem like working with anyone who worked with them before, that's a big red flag. Even that the recruiter that worked with them last time isn't working with them before.
Starting point is 01:09:16 So you shouldn't be 30 or 40 or mid-career and be totally outside of the network that you've been in looking for a job. That's kind of a red flag for me too. So many good insights, Robert. I have to say, this whole interview, I'm like, oh, I should be doing this. I should be doing this. Giving me a lot of ideas. One percent a day.
Starting point is 01:09:36 That's all you need. Yeah. Yeah, lots of stuff to implement. I highly recommend you guys go get his book, Elevate and Elevate for Teams. Robert, we end our show with two questions that we ask all of our guests. The first one is what is one actionable thing that our young improfitors can do today to be more profitable tomorrow? I love the 80-20 rule.
Starting point is 01:09:57 So I would say go look at your clients, team, whatever, and you will find that 20% of the people are responsible for 80% of the outcome. That's where you should focus. And you can stop doing a lot of the stuff where 80% of the effort is getting 20% of the outcome. It's very hard to escape the 80-20 rule. If you don't believe me, walk into your closet and look at your clothes and you wear 20% of your clothes, 80% of your time. Everything is 80-20. The whole world is 80-20. And what is your secret to profiting in life? And this can go beyond business, beyond finance, whatever comes to mind for you. Look, and this is, I guess, the core of
Starting point is 01:10:34 affiliate marketing. I thought about it. I've tried everywhere to build mutually beneficial outcomes. Win-win sounds so trite, but I think in everything we've done, whether it's between the organization and the team or partnerships or the core model of what we do, try to focus on outcomes where everyone can win and not win-lose. I think that works in the short term, but, A, it's no fun in the long term and it doesn't work. So I really focus on, I'd say, mutually beneficial outcomes. I think that's super smart. Robert, thank you so much for this amazing conversation, learned so much about how we can elevate our teams, build capacity within our teams. Where can everybody learn more about you and everything that you do?
Starting point is 01:11:16 Everything is totally integrated now at Robert Glazer, GLAZER.com. So the books are there, the podcast there, the Friday 40 email, if you want to join it in the course. And I'll get you that code as well. Like I mentioned, you are a part of our podcast network. So his podcast is called Elevate and he's got a super engaged following. So if you guys want to learn more about entrepreneurship, tell them what they'll hear. here on the show. Yeah, we really focus on a combination of CEOs and people that have done it and been in the trenches as well as world-class thinkers and writers and authors around aspects of performance
Starting point is 01:11:51 where if you want to get better at something, then they're the person that can tell you how to do that. So, yeah, it's the L of A podcast. Join wherever you listen to your podcast. Amazing. We'll stick all of those links in the show notes. Robert, thank you so much for your time today. Thanks for having me, Hala. I loved this conversation with Robert because it was so practical. And he had so many helpful things to say about how we can grow, scale, and build better businesses, even in challenging environments. I personally took away so many lessons today, but one that's top of mind is the fact that we talked about how top performers likely won't always be your top performers. And I've personally experienced this before.
Starting point is 01:12:34 At one point, I'll have an employee who's absolutely crushing it. I'm always saying what a rock star they are. And then suddenly they seem to be really falling flat like they're in a rut. And I've also seen these people become top performers again if I put them in the right position. And so what can you do to help these performers stay top performers? Robert says it starts by recognizing that this kind of change happens all the time. When your business is growing, it's often evolving right under your feet. And the same people who were great when you had a dozen employees sometimes just can't keep up
Starting point is 01:13:09 with the same role in a hundred-person organization. And as a leader, you have to recognize this and make the tough call to say to them, I don't think you want to or are able to do this job, or you need to figure out a place within the company that they will thrive. But it's not inevitable that your business will fracture as it grows. Finding the right people is key.
Starting point is 01:13:30 Robert compares it to building through the draft in sports. If you can find high-aptitude individuals who are curious, reflective, and interested in building a culture of learning, then you'll likely have a better chance of adapting to new pressures as you scale up. You also have to nurture your team, treat them with respect, and only cry fire when there's an actual fire. As Robert put it so well, they'll be happy to be your firefighter if you're not always the arsonist. It also helps to figure out what strings you can pull to improve their satisfaction and performance.
Starting point is 01:14:03 For example, Robert is not a big fan of the compliment sandwich, And although a lot of people have come on the podcast and recommended that strategy, neither am I. Sometimes people miss the meat of the sandwich or focus more on the last thing they heard. Sometimes it's more effective just to be straight to the point. Thanks so much for listening to this episode. We also love feedback and compliments here at Young and Profiting Podcast. So if you did enjoy this show and you learned something new from Robert Glazer, then drop us a five-star review on Apple Podcast.
Starting point is 01:14:32 Nothing helps us reach more people than a good review from you. Another thing that we love is sharing. Just hit that share button and text a link to this episode to somebody you know who could benefit from it. If you prefer to watch your podcast as videos, you can always find us on YouTube. Our YouTube channel is growing really fast, so check us out on there. You can also find me on Instagram at Yap with Hala or on LinkedIn. Just search my name. It's Halitaha.
Starting point is 01:14:55 Before we go, I did want to shout out my production team. I'm so grateful for Jason, Amelia, Greta, Sean, Hasham for Concrete, Ambika, Ashito. Shkarema. The list goes on and on. You guys are amazing. This is your host, Halitaha, aka the podcast Princess, signing off.

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