Dennis Yu

Effects of Good Hire And Bad Hire On Your Business

Don’t worry about overpaying for talent. The cost of a bad hire is 20 times that. Mistakes cost you money, reputation, and sanity. A bad hire infects the rest of your team. When they finally leave, you also lose the investment you made in them, plus you have to rescue projects they abandoned. On the other hand, a great hire takes the burden off your shoulders instead of creating more problems for you to solve. They anticipate what’s needed and spring into action without you needing to initiate it for them. Their value keeps multiplying over time since they know your business well and build up teams, scaling the goodness. When this happens, reward them handsomely and proportionately to their value. The most successful entrepreneurs I know are not the smartest or hardest-working people. They build up great teams around them. Same mistake as hiring someone you like, whom YOU believe in, but they haven’t demonstrated that they are committed. They will give up easily, causing you to lose the investment you’ve made in them. Avoiding loss is the key to hiring instead of trying to give everyone a chance. See my blog post on the “5 most important traits to run a successful business” and Having Good People Is Key to Your Business!

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What Qualifies You to Provide a Credible Opinion

Many people have strong opinions, whether credible or not, about what you should or should not do, whether backed by experience or not. And the more people you have, the more unsolicited opinions you’ll have coming at you– from family, friends, people who work for you, and random people on the internet. The tricky balance is allocating enough time for people and making them feel like they’re heard while not making everything open to debate. As a leader, you often have to put your foot down and hope everyone supports the decision enthusiastically and understands why. Ultimately, the leader makes the decision. Ray Dalio covers this expertly in his book, Principles. The Dunning-Kruger Effect (incredible concept) says that the most uninformed people have the strongest opinions. The antidote to DK is #LDT (learn, do, teach)— to only voice your opinion when you have learned something and implemented it successfully yourself many times to have a credible opinion. To provide advice, even when you really believe in something without achieving it yourself, is to be a backseat driver or armchair quarterback. I constantly catch myself and others voicing opinions on something. Then consider if the opinion is backed by a successful implementation to ensure that it is not from a hypocrite or an unknowing and well-meaning victim of DK. I’ve discussed this at length with mentors many levels above me, but never yet found one who has been able to get people in a large organization to understand #LDT (to provide an opinion only when qualified). I thought there must be a way to teach this seemingly simple concept– since it would open the eyes of many. But my mentors have said the solution is not to force this learning on people but to have a super high bar in the first place (avoiding the problem altogether). Isn’t it incredible how good, intelligent people can come to opposite conclusions? How do you address leadership challenges? See how Extreme ownership has taught me that there are no bad teams, only bad leaders.

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More important than making money is making meaning.

Are you around people who talk only about six figures, seven figures, and all that? It can be alluring and flashy, especially if you don’t have it yet. But I can guarantee you their lives are hollow since their self-worth depends upon your validation. The peacocks are attractive but ultimately are parasites trying to use you. Be like Piotr Podbielski, who focuses on giving, instead of only taking. He’s successful AND he feels good inside from the lives he’s impacting via his mentorship programs. I’ve had kids steal from me— a co-founder steal a brand new Silverado and two jet skis, or an employee drive off with a BMW 328i in the middle of the night— yet claim they’re here to “give back”. Thankfully, there are more Piotrs in the world, multiplying their impact on hundreds of people— so the math still works out. And that’s why I keep on doing what I’m doing. Are you around the people who talk only about their success all day and want YOUR money?

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If you give me a gold medal first, then I’ll be motivated to start training for the Olympics.

Laugh if you want, but this is a common attitude for the lazy employee mindset. I’m being paid only a fraction of what I’m worth, so I’m justified to pay only partial attention and do half-quality work. Ever been with a half-quality girlfriend or gotten surgery from a half-quality heart surgeon? Earn it the old-fashioned way, so you’re invited up to a place of prominence. Instead of sitting on the throne and then being disgracefully told you have to move. Better to start from a position of humility and have others lavish respect on you, which you’ve earned. Don’t wait for others to praise you to get going or wait for guarantees, even if it’s “unfair” that somebody else appears to be paid more for working less. Take action now!

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The CEO of American Airlines told me that managers are either loved or productive, but rarely both.

You see, it’s easy to be loved as a boss– don’t hold people accountable. Constantly praise, skipping the hard conversations. Let deadlines slip. It’s medium hard to be an effective boss since it means you have to be willing to crack the whip and rid the team of parasites. Not everyone will love you when you have to deliver. The super rare boss is both loved and effective. Studies show that less than 1% of managers are able to pull this off. The key to their success is instilling a CULTURE so strong that weak performers don’t even make it into the company. While the problem creators demand your attention, resist the urge to oil the squeaky wheel. Focus your time disproportionately on the high performers. By definition, that means you cannot be spending all your time on the troublemakers, no matter how much noise or drama they cause. Your team clearly sees when these rebels get away with their behavior, which is why your culture is defined by what you’re willing to tolerate. Loved, productive, or both… Which of these 3 manager types are you?

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Over the last 25 years, I’ve seen a lot of people succeed and fail.

The #1 thing I notice beginners do, which experts don’t, is they focus on… + FANCY instead of the fundamentals. When we troubleshoot campaigns, 99% of the time, a bunch of fundamentals are missing. And it shouldn’t take an expert to notice what can be tracked via a checklist. + URGENCY instead of results. A fire drill is exciting and gives the semblance that things are happening. But don’t mistake commotion for progress. + APPEARANCES instead of progress. Are you focusing on how you look instead of getting the job done? If your perfect Instagram flex is ruined by getting dirt under your nails, you can still out-pretend the other fakers. + THEMSELVES instead of others. If you want to make a million dollars, solve a $100 million problem. When you lift up others and serve others, they can’t help but toot your horn, instead of you awkwardly tooting your own. LEARNING all the time instead of trying to give advice on something you’ve never done yourself. The most successful people I know read 3+ hours a day and actively seek out other successful people. Do you know someone who fits the description above of a successful person or a failure?

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What your boss will never tell you.

You’re either creating problems for her or that you’re solving problems for her. And this is the key to advancing– whether your boss is your employer, client, customer, teacher, or parent (yes, all these are bosses). I’ve had some incredible mentors over my career– and some spectacular failures, too. But when I messed up and got feedback on how to improve, I could never imagine talking back to my mentor– to show disrespect when he was going out of his way to help me. Could you imagine having the balls to say that to the CEO of American Airlines? Maybe I’m an old-fashioned fuddy-duddy– hey kids- get off my lawn! But everything good I’ve gotten has been from a boss or mentor who has opened doors for me that they didn’t have to. I’m not a slave groveling for mercy, but I’m also not a 20 year who knows it all. By showing my boss/client/mentor that I’m someone who comes in to take care of problems before they even happen, even if it’s not “my fault”, they breathe a sigh of relief when I’m around. As opposed to being worried that something will blow up in their face, that they will have to intervene, or that they’d have to deal with righteous young anger. The more you take care of your client/boss/mentor, the greater opportunities they will open for you. Over time, this grows into something incredible– and it’s the #1 reason for everything good that’s happened for me. Not because I’m smarter, harder-working, or “better” than anyone. Have you tried this tactic with your boss? And if you’re a boss, how do you deal with people who are creating problems versus solving problems?

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Level UP.

Here’s the internal note I sent team members, discussing big changes at Content Factory. What do you think? // It’s time for all of us and the company to LEVEL UP! Some of you will be excited by these changes since you’ll be rewarded for your diligence. Others may be dismayed because they will have to dramatically increase their performance or leave— even if they have been comfortable getting away with doing the same thing for years without consequences. We are moving to a P&L model next month, where qualified team leads will run their businesses using Content Factoryas a support platform. They will have dedicated team members to serve clients while using shared services and support— training, finance, legal, marketing, technology, and HR. This situation will create stark accountability, so the people who have been hiding, but aren’t delivering clear client value, need to improve or leave— since the client won’t want to pay for that, and the team leader won’t want that cost against their P&L. Most of you will make a lot more money this way and have more freedom. You’ll see some people go from Level 2 to Level 6 in a couple of months because of initiative, while others may be stuck at their current level or even be downgraded since their actual performance doesn’t warrant the level they are at. Imagine that you can get a piece of the profit that you generate! After running the P&L model for a few months, we will then switch to piecemeal payment, moving away from the hourly system. The hourly system rewards people for taking longer and wasting time. The task-based model, complemented by reviews, pays people what they are actually worth, which can be over $100 an hour for many of us if we focus on results. Internal team members who are building systems are exempt from this model, since engineering, finance, and certain parts of marketing are not client-specific. They will be on salary plus bonus. For people to earn their way to be internal, which is Level 6+, they must still prove themselves capable as INTRAPRENEURS, else they are not qualified to be building systems or teaching others how to do something they’ve not done themselves. In other words, we must all first demonstrate we can achieve client success before we have earned the privilege of building systems, no matter how eager we may be to teach or believe that gravity doesn’t apply to us. Put your own oxygen mask on first— #LDT. This shift creates a huge opportunity for everyone to level up, since we need strong team leads that can run their businesses without operations or even me needing to chase. There are more than enough clients and team lead slots to go around, not counting the new clients and partners about to come on. So we are all learning how to do new tasks, doing tasks to generate income for everyone, and then teaching others how to do. We’ve been working on systems that will make this operation possible, much like Uber and FancyHands with their supply and demand systems- except we train and mentor where they don’t. The deals with ADU, Escape Fitness, DigitalMarketer, Affiliate Institute, LightSpeed VT, and others will pull in thousands of new specialists and businesses into our system- and these folks will need team leads to guide them. With strong team leads in place, handling everything Level 6 and below, I can focus on the Level 7+ items that you’re all counting on me to deliver. If you’re not ready for this change, you should say something now, so you don’t let down the rest of us- not fair to everyone when a few people don’t do their part. It’s the “weakest link” where a couple of people can wreck it for everyone. Some people may take things personally, instead of seeing that they need to improve their performance and that a few of us are willing to help, even if uncomfortable— most companies don’t have the patience. We’ve all worked so hard together to get to this point, and we’re about to enjoy the launch of these new systems in the next few months! Think about what this means and discuss it with your team lead.

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