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556: What Drives Your Career Growth with Korn Ferry’s Gary Burnison

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Gary Burnison shares what professionals need to start doing differently to advance in their careers.

You’ll Learn:

  1. Three mindsets to accelerate your career growth
  2. The overlooked elements that determine career fit
  3. Why most meetings are meaningless

About Gary:

Gary Burnison is the CEO and member of the board of directors for Korn Ferry, a global organization consulting firm. He is also an author, having written several books on career management. His latest book, Advance: The Ultimate How-To Guide For Your Career, is an insider’s look on everything professionals need to take control and get ahead in their careers.

He is also a regular contributor to ForbesCNBCBloombergFOX Business, and other major international news outlets. Mr. Burnison earned a bachelor’s degree in business administration from the University of Southern California and holds an honorary doctor of laws degree from Pepperdine University.

Resources mentioned in the show:

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Gary Burnison Interview Transcript

Pete Mockaitis
Gary, welcome back to the How to be Awesome at Your Job podcast.

Gary Burnison
Hey, great to be with you.

Pete Mockaitis
Well, I’m so excited to dig into your wisdom once again. It’s funny, I believe it was Episode 273 you were with us, which is almost half of the podcast lifetime ago.

Gary Burnison
Not that you’re counting, huh?

Pete Mockaitis
Roughly in the bubble. So, we’re going to talk about how to advance in careers. And I thought it might be fun if you could maybe open us up with a powerful story of someone who was kind of stuck where their career was going and then used some of these tools to get unstuck and see some great results.

Gary Burnison
You know, interviewing is kind of a trip between, it’s this in-between going to Disneyland and a dentist, and we psyche ourselves up, right? And it kind of goes back to the sixth grade, “Are they going to like us? Are they going to like me? What are they going to think of me?” It’s a very natural human emotion.

I was in a Starbucks in New York City a while back, and there was a young gentleman, he had a triple Red Eye that he had ordered, and he had a portfolio in front of him, and I figured this guy is getting ready for an interview, and I see the resume, and his leg is tapping uncontrollably up and down. And I just go up to him and I say, “Hey, so what are you doing? You got an interview, huh?” And he said, “Yeah, that’s exactly right. I really need this job. My wife relocated here and I’ve just got to get this thing.” And I said, “Listen, you got to chill out because you’re not going to make it past security. The way you’re going right now is not good.”

And I said, “Look, you got to treat this like a conversation. You’re not auditioning for Annie. This is not a rehearsed deal.” And he ended up, come to find out, he got the job. And he got the job because he was authentic, he made a connection, and he gave the interviewer a taste of who he was as a person, not just what he did.

Pete Mockaitis
I think that that’s dead on, and I remember being on both sides of the career fair table, and whenever I heard someone just say, “Hello, I’m looking to combine my interests in accounting and finance in a challenging role that is like…” No human talks that way. I mean, it’s not that that’s a deal-breaker but it’s sort of like, “Oh, you’re not making a great first impression right now, and we’ll keep talking and we’ll see where we go, but I’m not enthusiastic about the rest of this conversation from the first 20 seconds.”

Gary Burnison
Well, no, because people, they make up things, they say things that they think you want to hear. Resumes, God, if I see another resume where, number one, you shouldn’t have an objective, I think that’s really bad on a resume, but a lot of people do. And how many times have you seen, “I want to be part of a collaborative team in an entrepreneurial environment where I can make a real big impact”? Oh, really? Like, you and a billion other people in the world. It’s not authentic.

Pete Mockaitis
Okay. Well, hey, we’ve got some great tips right off the bat. Chill out, keep it authentic, and it’s not an audition, it’s a conversation. So, then tell us, you’ve got a recent book called Advance. What’s the main thesis here?

Gary Burnison
It’s really to take control, to take control of your career like you would do with your health, and, really, kind of three basic ideas. Number one is it starts with you but it’s not about you, and if you want to earn more, you’ve got to learn more. So, the reality is you have to, first, be introspective about what your strengths are, where your blind spots are, what your purpose is, what makes you happy, because if you’re happy, you’re probably motivated, and if you’re motivated, you’re going to outperform.

Pete Mockaitis
Oh, you said that last time. I’ve quoted you on a slide, Gary. That’s one of my faves.

Gary Burnison
It’s true. I mean, and people, “Oh, is this really possible?” Yeah, it is possible. Look, we all need to make a living, so there’s no denying that, and sometimes you just need a job, I get it. But, ultimately, you want to get something where you’re learning, because if you’re growing and learning, you’re probably going to be pretty motivated and pretty happy. And so, that kind of introspection, most people, they just ignore that stuff completely.

And then, secondly, you’re not a sculptor in a studio by yourself. And so, it starts with you but it’s not about you. And so, there’s a whole range of advice in this book around, “What do you do with a bad boss? How do you make presentations? How do you work with others? How do you work virtually? What do you do if you’re managing for the first time?”

So, as you progress in your career, you start out as a follower, and I would suggest there’s kind of six phases to a career ultimately up to a leader. But, at some point, you have to make that transition where you’re not an individual contributor, and it’s really, really hard. And, in that transition, you’ve got to work with others. So, despite all the technological advances of the past century, it still comes down to people, and not just online interaction, but actually old school, offline interaction.

And then, finally, look, if you want to earn more, you’ve got to learn more. We’ve proven that the number one predictor of executive success is learning agility. We’ve done 50 million assessments of executives all over the world, and Korn Ferry would stake its reputation that it’s the number one predictor of success. The distance between number one and number two is not constant. And the reality is, what does a great athlete do or what does a coach do after a game? Well, many times, they review the tape, they look at the video and they go practice. It’s the same for your career. If you’re not learning, you’re not growing.

Pete Mockaitis
Okay. Well, hey, you don’t have to convince me. I’m right on, I’m right with you there in terms of learning. And, often, it’s a bit of do-it-yourself proposition in many environments sort of, I guess, there you go, advance, take control, much like what you do with your health.

Gary Burnison
Well, again, the do-it-yourself proposition. So, here’s the other thing why it’s critical to really target what your next career move is that the reality is, what Korn Ferry would say is that we believe in 70/20/10 when it comes to development. So, when you say do-it-yourself, so, listen, only 10%, after college, of what you learn is in classroom. Ninety percent of it is either who you’re learning it from or what your assignment is.

And so, a critical piece that people don’t think about when they’re going to go take another job, they focus on the bling. And I can understand why. They focus on the title, focus on the money, “I just to make some more money.” Well, that’s great. But they completely ignore that it’s a marathon, and, “Are you going to learn and who are you going to learn from?” Like, that is…Look, I can’t say you’re always going to have a choice, but it’s something that you have to really need to consider for the marathon.

Pete Mockaitis
Okay. I’m hearing you. And so, that’s a key consideration and it’s something that’s often overlooked. And I want to get some more of these gems from you here in terms of when it comes to employees who are stalling out, they’re getting stuck in ruts, they’re facing some challenges and not conquering them very often, what do you think are some of like the big things that professionals, they got to nail and they’re not nailing it so well right now?

Gary Burnison
I think there’s a left-brain aspect and there’s a right-brain aspect. So, the left brain is all around specialized skills, okay? So, that’s very, very hard to answer or it depends on what function you’re in. Is it technology? Is it finance? Are you in a services business, manufacturing? That world is clearly, that’s changed, and that’s going to vary depending on the person. I would just generally say that learning determines a worker’s earnings for life. So, those left-brain skills have to continually be worked on.

The right-brain skills get ignored all the time, and those right-brain skills are really important to your happiness. And so, they seem like little things but they’re not so little things. And it could be this little thing called coworkers. The reality is that you’re going to spend way more time at work and with your coworkers than you are maybe with your own family. So, are they getting right or are they getting wrong, the kind of right-brain things around who their boss is? Are they learning? Their coworkers?

That culture piece is, I think, today, overlooked. And it’s critical. It’s critical to just think about your day. Like, what is going to piss you off during the day, right? If you have a job, I guarantee you don’t wake up upset, right? You’re probably pretty happy going to work. And then what happens? Somebody says something, may have been an innocent comment, you get an email, didn’t have the right context, you get a text, text can’t make you laugh or cry, and you just get turned off. And, by the time you’re driving home, you’re so frustrated. And so, those things around culture, people don’t consider.

Pete Mockaitis
Right, yeah. Absolutely. And I’d love your pro take there on what are some of the best ways on the outside looking in to get a gauge in evaluation on some of those matters?

Gary Burnison
It’s the little things. It’s, “How are people dressed? How do people interact? What’s it like at 7:00 at night there? What’s it like at 7:00 in the morning?” It’s funny, you want a new job, and so you start. I would hope you’re actually targeting, proactively targeting the companies and not being reactive, but many times people are reactive, which I think is a real problem. But you look at these job titles and these responsibilities and it’s all these words, and it’s really hard to tell, “Okay, but what’s my actual job? Like, what am I going to do Monday morning?” because you have all these lofty words, and these responsibilities, and it’s hard to separate what you’re really going to be doing.

And so, I think a great way is to, really, like when you go to buy a house. If you buy a condo or a house, I love to drive by at 11:00 o’clock at night and look at the neighbors. Or my oldest daughter was just moving apartments, and I said, “Stefy, make sure you go there a few nights a week at 11:00 o’clock before you sign that lease because you want to see it when nobody thinks you’re looking, right?” The problem with an interview is like it’s a performance, it’s a stage. People are actually looking. But you want to figure out what the place is like, what the people are like, when nobody is looking. That’s what you’re trying to get to.

Pete Mockaitis
That’s a nice clear distinction right there in terms of, “Is it on display, on show, or is it the real deal?” and the 11:00 p.m. analogy. Oh, it’s sparking all kinds of things. So, then what are some of the best ways that we can get that view in terms of we’re looking and they don’t know we’re looking? How do we do that? Do we talk to former employees? Tell me more.

Gary Burnison
Yeah, you do. You’ve got to be kind of a private detective. There’s no other way to do it. So, you have to work your network, you’ve got to do the six degrees of separation. You want to find people that knows somebody, that knows somebody that works there. That’s the way you want to do it. And it really does work. I know it seems daunting but that six degrees of separation really does work. I found it to work in my own life.

And so, yeah, you want to work that network, you want to find out from people who have left. Sometimes they may be jaded. I don’t place a lot of stock in Glassdoor. I know a lot of people do. But, generally, in those kinds of reviews, you’re hearing from unhappy people that have left the organization. It could be a reference point, it’s something to triangulate, but I wouldn’t stake my whole career and reputation on it. If you can drive around, if you can get access into the office or the building, that could be something you can do. But, yeah, look, you’ve got to be a private detective.

Pete Mockaitis
That’s good. Well, so then let’s say you’re in the job, away you go, and we’re up and we’re running. You’ve got a number of particular prescriptions when you’re in the midst of things. I want to get your take on the boss relationship and meetings. So, first, what’s the main thing we got to keep in mind in terms of managing a boss relationship effectively over the months and years?

Gary Burnison
Number one, it’s not them, it’s you. So, you’re never going to be able to change the boss but he or she can change you, right? They can actually fire you. So, you can try all you want but if you keep saying it’s them and it’s not you, it’s not going to get any better. So, there’s all sorts of different bosses, we’ve all had them. We’ve had those that are heroes and inspirational. And we’ve had those that are just micromanagers and autocrats.

And so, I think the first thing is you have to look in the mirror, and I know that’s really hard because you’re going to say, “It’s not me, it’s them.” But look in the mirror first, and just recognize that you’re probably not going to be able to change that person. So, then you have to take accountability for performance. And the way to do that then is the days of once-a-year reviews, those are gone. Today, people are career nomads.

So, what you need to do is take the initiative and set goals, you really do, because you can’t politic your way to the top. At the end of the day, it’s performance. Performance does matter. Not that there’s no politics because there’s obviously politics, but performance trumps politics. And so, what I would encourage people to do is to take ownership for their own goals and make sure you are continually talking with your boss about what has to get done, “What do I need to do to contribute? What are the tangible goals towards that contribution? How do we measure success? And how can I help the team win?”

Because, at the end of the day, the reality is the boss doesn’t think about you as much as you think about yourself, right? So, you may think a lot about your salary but the boss isn’t going to be thinking about your salary. It’s not that he or she doesn’t care, it’s just that’s not where their mind is going to go. We have almost 10,000 employees. I think a CEO has to care about their employees, their customers, and their shareholders. But am I thinking every second about somebody’s salary? I’m not. It’s not practical. So, start with it’s you and take ownership for performance, and get in a regular dialogue with your boss around performance.

Pete Mockaitis
Yeah, I think that’s so dead on and a good reminder. It’s true. I manage and pay people, and I think about the compensation pretty rarely, maybe it’s like, “Huh, they’re doing a great job and it’s approaching the end of the year, I want to make sure they don’t leave me.” So, that’s about the extent. It’s that question, it’s like, “Hey, yeah, they’re doing great. I want to make sure they don’t leave. Here we go.”  There you have it. So, that’s a nice reality check for you.

And, yes, I totally am with you that you gotta have those regular ongoing maybe reconnections associated with what’s most important right now, what are we trying to achieve, how are we measuring it, how do we win, and not, I guess, taking anything for granted. Maybe, I guess, the alternative to that might be doing whatever lands in your inbox, just doing that as opposed to these critical goals that we’ve agreed to.

Gary Burnison
Well, you can’t teach hustle. And I will take hustle over pedigree any day. And so, what you’re alluding to is people that have hustle. And so, I would have a bias that I would much rather hire somebody who did not have the pedigree, didn’t have the family name, didn’t go to an Ivy League school, but is hungry. You just can’t teach hunger. And I love that. And I think what you’re saying is get it done. Like, just do it. Take initiative. Yeah, absolutely, that’s actually better than the whole performance goal thing. That’s absolutely the way to do it. But then you’ve got to make sure that you are getting recognized for that and that you’re not just doing somebody else’s work.

Pete Mockaitis
Understood. I also want to get your take on you’ve got a chapter called “Let’s Have A Meeting – Why They’re All Meaningless.” So, a bold stance. Tell us about this.

Gary Burnison
Oh, it’s a joke. You know, so many times today, the strategic response to any question is, “Let’s have a meeting. Let’s get together and talk about it.” It seems like it’s the response to every problem. And I think, look, there’s a number of problems with meetings. Number one is that people, they’re on stage, and so they’re performances many, many times, and they’re not real, they’re not authentic. And it’s amazing how the dynamic changes when you have two people versus four people versus six people versus ten people, and also how the dynamic changes whether there’s a boss there or not.

And so, ultimately, you defer to the most senior person in that meeting. And are you really going to say what’s on your mind? Are you really going to say the truth? And so, I just find them to be a little bit make-believe. We all remember in college we had these group projects, and some of my kids are college today, everybody dreads those, right, those kind of peer-to-peer group projects, “And who’s going to take initiative? And who’s going to speak out? Who’s going to hide behind somebody else’s work?” I just think that people today, it’s not a stage. And, for me, there’s different kinds of meetings. Is it an information meeting? Is it decision-taking? Is it discovery? Is it brainstorming? Like, what is the purpose? What are you trying to get out of this thing?

And the other thing I’m a big, big believer in is whatever time you give somebody, they’re going to take up that time. And so, when it comes to a meeting, I’ve got the 45-minute rule. Anything after that, unless you’re brainstorming, unless you’re doing blue-sky thinking, it’s not productive at all.

Pete Mockaitis
I think it’s a fun coincidence that our appointment is exactly 45 minutes today.

Gary Burnison
Look, I believe in collective genius, and I think that people are smarter together than apart. I’m a huge, huge believer. So, the meeting can be absolutely incredible if the right stage is set. And so, what I mean by that is people are free to speak their mind. What I’ve found, being a CEO now for a long time, is that generally people don’t have freedom of speech unless they have economic security. And so, to create that environment where people can speak the truth and people can speak their feelings, and that constructive conflict can be turned into collective genius, I love constructive conflict. But you have to have the right orchestrator so that it turns itself into collective genius.

Pete Mockaitis
Boy, well, that’s really thought-provoking, the notion that you’re not really speaking your mind unless you have the economic freedom. I guess that’s true in the sense of, well, I guess they talk about the, “F you, money.” It’s like if you’ve got that in the bank, then it’s sort of like, “I’m just going to tell you what I think. Worst-case scenario, you fire me and that’s no big deal.” So, I can hear that that resonates. So, then if you are kind of working with managing folks who they’re not quite paycheck-to-paycheck maybe but they sure do need the job, how can we facilitate that psychological safety knowing that they do still want to hold onto that job?

Gary Burnison
Well, as a boss, you can’t have retribution. If your actions don’t mirror your words, then it’s never going to happen. So, as the boss, you have to ensure that there really is a safe zone, and that that is absolutely reinforced every single day. We had a funny story recently, I mean, it’s kind of sad-funny, however you want to look at it. But we were interviewing an executive, and the company was looking for a new leader and they wanted this person. They really thought they wanted somebody who was collaborative.

And so, we were interviewing this executive, and so the interviewer asked, “So, give me an example of how you collaborate.” And he said, “Well, look, it’s easy. We have a meeting and we go around the table, and we either give a thumbs up or a thumbs down to the idea.” And the interviewer said, “So, how do you exactly do that?” And he said, “Well, it’s simple. I, first, give my view on, ‘Okay, this is a bad idea or a good idea,’ so I say thumbs down.” And the interviewer said, “So, you go first. So, how does that really work?” And the executive says, “Well, we have complete alignment.” Go figure, right?

Pete Mockaitis
Everybody agrees with you.

Gary Burnison
“Everybody agrees with me.” Needless to say, this person did not get the job. So, as the boss, you have to make it real and you have to set the tone. And, as the coworker, what you can’t do is take things so personally that you start spreading all sorts of news at the water cooler. You just can’t do that. That turns into a very cancerous environment.

Pete Mockaitis
Okay. Next bit, you mentioned the top 20 must haves for career development in your book, and that’s a lot. So, can you give us the top, top two?

Gary Burnison
Number one is humility and the second is self-awareness. And I say those two because those are the starters. Without those, the other hundred things will never happen, because, again, your performance is not just absolute, it’s relative. So, this distance between one and two is not constant. You have to improve yourself. Well, if you don’t have humility, then you’re never going to be self-aware, so you have to have enough humility to be able to look in the mirror and say, “What do I need to improve on?” like any great athlete does. Those are absolutely, you have to have those two, because without those two, it’ll be the exception rather than the rule in terms of making more money, getting those promotions, advancing, and all that.

Pete Mockaitis
Perfect. Thank you. Gary, tell me, anything else you want to make sure to mention before we shift gears and hear about some of your favorite things?

Gary Burnison
I think that I’ve just been shocked, whether you’re in the boardroom or you’re starting out of college, you’re starting out in your career, that you don’t treat your career like your health. And what I mean by that is if I told somebody, “Listen, you’re going to have a heart attack in nine months,” I guarantee you, this afternoon you would change things. You would start juicing it, you’d start eating oats, you’d start walking, you’d start running. You would do all sorts of things. You’d go to different kinds of doctors. Like, you would hop all over that.

Well, when it comes to your career, I think people are just complacent and they’re clueless, and they have this view that they’re going to be plucked out of the seat, that somebody is going to come to them with this great opportunity. That is not going to happen. And, today, we’re in a world of career nomads where, I believe, people coming out of college, Korn Ferry would suggest you’re going to work for 25 or 30 different employers.

And so, people are staying for two, two and a half, three years, and they’re moving on. They’re parlaying. They’re taking skills and they’re parlaying. They’re parlaying for more responsibility, they’re parlaying for more money, they’re parlaying to learn more. And so, I think you’ve got to treat your career like you would your health. And I really do believe, I would look at it and say, “Hey, I think I’m going to get fired in nine months. I think the company is going to get acquired. What would I do differently today?”

And what you would do differently is not just sitting with your computer pretending you were Hemingway with your resume and trying to find the right verb. That is the wrong thing to do. What you would do is you would think about where you want to go, and you would start to network, and you would target those places where you think you can really make a difference. That’s what you would actually do. And it’s bothered me that this just-in-time networking, like, something bad happens, your company gets acquired, your boss leaves, all of this stuff happens and people aren’t prepared. And so, you’ve got to treat your career like your health, and be proactive, and don’t just wait for the heart attack to update your resume. Actually, do something before.

Pete Mockaitis
All right. Thank you. Well, now, could you give us a favorite quote, something you find inspiring?

Gary Burnison
What’s always on my mind is, “You’ve got to believe to achieve.” And I think that I’ve just found that, and I don’t know if that’s something that I came up with or I read, but that’s on my mind all the time. And there’s another one that’s on my mind all the time, and that’s, “Fail fast and learn faster.” And so, most people are scared of failure, but the reality is that’s how we learn. Whether we like it or not, we learn through failure. And you have to try things. You have to take risks in life if you want to grow.

Pete Mockaitis
And when you say “You’ve got to believe to achieve,” can you unpack what that means in practice for a career?

Gary Burnison
You have to believe in yourself. You have to have that inner confidence. And so, if you’re the CEO, like myself, I think the most important thing is purpose. In other words, most CEOs, they think about the what, and the how, and the where, but they don’t think about the why. And the why is the most important thing, I think, in business. The why is, “Why are you in business?” And so, I call that purpose. For me, as a CEO, what I have to believe is I have to believe in purpose. I have to believe in our purpose.

Because if I can authentically represent that to 10,000 people, people will get behind that.

For an individual, I would say that you have to believe in yourself. Without that, it is going to be very, very hard to advance. And that’s why it’s so important that when you think about the next job and a career, who’s your mentor going to be? Because, yes, you can believe in yourself, and I tell you, it’s a lot easier to believe in yourself if others believe in you. Both have to happen.

Pete Mockaitis
All right. Thank you. And how about a favorite study or experiment or bit of research?

Gary Burnison
Well, it’s a book that I think is 20 years old, but Who Moved My Cheese? It has a strange title. It’s actually a very motivational book, it’s a very simple book. And the concept, which is so appropriate for today, is around change. And so, this view of trying to make tomorrow different than today, of having this insatiable curiosity for learning and for change, and not accepting the status quo, and not falling into the den of complacency is what that book’s all about. And I think that is more important today than ever.

Pete Mockaitis
And how about a favorite tool, something you use to be awesome at your job?

Gary Burnison
I spend probably an hour and a half in the morning and an hour and a half at night with nobody, around reading. And so, all the apps that I would have are all around news. And I found that it’s kind of a reflective time, and it’s a time to kind of be in the world, and to understand what’s happening around you, and to make your world bigger. And so, I do that religiously every single day.

Pete Mockaitis
And is there a particular nugget you share that really seems to connect and resonate with folks, they quote it back to you a lot?

Gary Burnison
Make people feel better after than before. And so, I will get that, people will say that jokingly, they’ll say it seriously to me. I think you should set that as a goal. Any human being, but particularly in the workplace, and particularly if you’re a manager, and for sure if you’re a boss, that with every interaction of an employee, “Do they feel better after than before?”

Pete Mockaitis
Thank you. And if folks want to learn more or get in touch, where would you point them?

Gary Burnison
Well, I’d take a look at the new book. It’s just simply called Advance, and you could get it on Amazon. And we actually have a new business Korn Ferry Advance that is all around trying to change people’s lives, trying to help them in their careers. We’ve got interviewing tools, we’ve got resume tools. It’s really the whole thing trying to change people’s lives and their professional careers for the better.

Pete Mockaitis
And do you have a final challenge or call to action for folks looking to be awesome at their jobs?

Gary Burnison
Boy, you want to wake up without the alarm clock. And if you’re not waking up without the alarm clock, you need to make a change. But that change needs to be well thought out.

Pete Mockaitis
All right. Gary, this has been a treat once again. I wish you and Korn Ferry all the luck and success in your adventures.

Gary Burnison
Great hearing your voice again. And thank you very much for your time.

549: Who Gets Raises and Promotions? Rick Gillis Reveals the Metric that Predicts our Fate

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Rick Gillis says: "Your work does not speak for itself. You do."

Rick Gillis shares how knowing and improving your “quotient” can help you get raises and promotions at work.

You’ll Learn:

  1. The factor that determines your compensation at work
  2. How to speak up for your work to your boss
  3. The perfect time to bring up your accomplishments

About Rick:

Rick Gillis is a speaker, author, and personal career advisor. He has spent over two decades writing books and sharing techniques to manage and maximize careers across the country. He is the founder of the Richard Gillis Company, LLC which provides training and career coaching to help job seekers land the best possible position at the highest possible pay.

Rick has appeared on several media outlets like Forbes.com, NPR, and the Wall Street Journal. Rick and his wife, Mary, live in Texas where he spends his free time riding along the Texas gulf coast on his Harley or in his music room and art studio.

Items Mentioned in the Show

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Rick Gillis Interview Transcript

Pete Mockaitis
Rick, thanks for joining us here on the How to be Awesome at Your Job podcast.

Rick Gillis
You bet, Pete. Thank you very much for having me.

Pete Mockaitis
Oh, I’m excited to dig into your wisdom. But, first, I think we need to hear a little about you and Harley Davidson motorcycles. What’s the story here?

Rick Gillis
Well, I’ll tell you what, it’s funny, I had a friend of mine one time say, “Gillis, I didn’t know you’re a biker,” and I said, “I’m not a biker. I just ride a bike.” And I do. I have a Harley, it’s a 2006 model, I’ve been riding for years, and I live south of Houston so it’s literally 54-mile straight shot to the Gold Coast, so that’s kind of my riding. I don’t do traffic ridings. Saturday, Sundays, get out on the highway, that’s what I do.

Pete Mockaitis
Well, that sounds fun, and so you don’t have any family that tries to curtail those adventures. I don’t think my wife would go for that if I told her, “Yeah, I’m learning to Harley now.”

Rick Gillis
Now, that I’m old enough, I got back into it. I gave up riding motorcycles when, I don’t even remember now, 17, 18 after dropping two or three of them.

Pete Mockaitis
Oh, man.

Rick Gillis
And I’ve only had this bike for, I don’t know, 10, 12 years. Like I said, I ride by myself, I go down two-lane highways, very little traffic, yeah, I’m not tough.

Pete Mockaitis
Well, you’ll get no judgment from me. My wife is a safety enthusiast and motorcycles are probably not in my cards.

Rick Gillis
No, I appreciate that. I really do. They’re dangerous, there’s no question, because I have to drive for everybody when I’m on the road.

Pete Mockaitis
Yeah. All right. Well, so good to know to get a little background there. You’ve invented an interesting concept called the quotient. Can you, first of all, define that and tell us why professionals might care about it?

Rick Gillis
Well, I’ll tell you what, now we’re not sharing this with anybody, right? This is just between you and me.

Pete Mockaitis
I make no representations of that.

Rick Gillis
Let me tell you what, Pete, the quotient was an epiphany I had literally just over two years ago, and I knew it was developing, and it came out of working with job search, job seekers for so long. I did it for 20 some odd years. And I was literally riding my bicycle, not my bike, in the neighborhood and, all of a sudden, it struck me what this was. And let me tell you, like I said, just between you and me, this quotient thing is really a very rich new powerful concept and I maintain it’s going to be able to resolve the pay disparity issue.

And what it is, it’s kind of like taking from a salesperson’s point of view, which I am and have been for many years, you know, a salesperson knows that if we don’t sell something this month, we don’t have a job next month, and that’s just the way, that’s your mindset. I would like the person who gets a paycheck to start thinking like that because a person who gets a paycheck on Friday, takes off the weekend, comes back on Monday, gets back into the mental mindset of being at work, of producing value. The quotient is exactly this. I take your work contribution, which I spend a lot of time in the book telling the non-salesperson how to determine the value of their contribution to their employer.

Pete Mockaitis
In dollars.

Rick Gillis
In dollars.

Pete Mockaitis
That’s the unit we’re working with, or Euro as the case maybe to our European friends listening.

Rick Gillis
Right, exactly. It could be any. But you take the value of your contribution to your employer and you divide that by your base pay. Now, note, it’s not your net, it’s your base pay. And so, what happens, that creates the quotient. So, let’s say, for example, you work for me, and whether you have read the book and have figured out how to do this, or if I’m doing it for you, or mutually, we determined that you have raised, you generated $250,000 in value this year for my company, and I pay you $50,000 a year. So, $250,000 divided by 50,000, your quotient equals 5, which means that you’re a good employee, you generated five times more than I paid you so there’s value there.

But, now, let’s go a little further, because, let’s say I’m a male working with an equally-skilled female, my quotient this year was a 9, hers is like, say, a 23, but I get the promotion and the raise and the bonus. Is that a legal standard? It’s been suggested to me by some very knowledgeable people that it could be a legal standard. And when you consider the possibilities, and I got to tell you, Pete, this is an epiphany I had the fourth draft of the book, I’m about three months away from finishing the book, and I had been writing with the mindset all along of equal pay for equal work.

I even had to look up where that came from, and that’s 1963, President John F. Kennedy signed the Equal Pay Act, so I didn’t know where it had come from. And, all of a sudden, it struck me that’s not what this is about. This is not about equal pay for equal work because that’s really hard to define. How many people do exactly the same thing? But if we instead say that this is the proper pay for the best performance, that takes discrimination out of the discussion. All of a sudden, it doesn’t matter, male, female, black, white, Hispanic, old, young, any reason for discrimination goes out the window when you pay the best person who performs the best. That’s really what the quotient is.

Pete Mockaitis
Well, I mean, that sounds like a beautiful vision and world there in which compensation is indeed proportionate to your contribution. That sounds fair and equitable and just. And for those who are awesome at their jobs and inspired to be more awesome at their jobs, it sounds tasty and lucrative, so we like that. Thank you.

Rick Gillis
Well, I appreciate that, and I say that because this is the motivated individual that’s going to use this. The person that’s really okay with things or has no motivation, see, I’ve actually got three levels of quotient. One is the quotient of 1, and that is when, let’s say, I’m paying you $35,000 a year to be a delivery driver for me, and you do a very good job. I’m perfectly happy. But a business cannot operate on quotients of 1. We need quotients of +5, +35, +3,000, it depends, so there’s a lot of different thought that goes into this, and there’s also the quotient of less than 1, which can be bad but it depends also on the person.

Pete Mockaitis
Yeah. Well, there’s a lot here. And I think just conceptually thinking about things in this way is helpful already in terms of, okay, I think in sales, or fundraising if you’re a director for development for nonprofit, then it’s pretty clear. It’s like, “Okay, I see. I know what they pay me, and I know what I brought in, and I can see that I am very profitable, or I’m very not profitable for my organization, and that can indicate I’m likely to be promoted, or get a raise, or to be exited in the near future.”

So, now the game gets a lot more intricate when your value or contribution is not so readily quantified in terms of dollar sales brought in. So, can you help us, maybe give us some examples of how do I think through that in terms of, “I am a program manager, or I am an engineer, how do I kind of get after what my contribution is in currency?”

Rick Gillis
Well, fundamentally, first of all, there’s two ways that you bring value to an organization. You either make money or you save the organization money. That’s it right there. So, most people in a company do not deliver revenue, they actually save money, so it’s a matter of being efficient.
The fact is efficiencies, saving of money, doing your job better than somebody else, and I have, throughout the book, I have 14 Q studies and, of course, that came from “The Quotient,” so I call them Q studies, and they are real people I’ve worked with over the many years, helping them get ahead, because I found a lot of people could tell me what they had done. They could not tell me what that translated to in value. And, candidly, this was a lot of 50+ year old men who had crazy good jobs, who I think got lazy, complacent, and, all of a sudden, they weren’t realizing they were not generating the appropriate value for their payrate, and they got pink slips.

And so, when I talked to them, almost across the board, I would find that they could tell me what they did, they could tell me what that value was, and I actually have a chapter in the book called The Earning Curve where your earnings continue to go higher, your personal earnings, tend to go up and up and up, but the value you’re bringing to the company starts crossing down. And when those two axes cross each other, you’re the problem now because you’re no longer developing or generating the value you should be generating.

So, in my case studies, I have several examples of people from an executive assistant to a bank VP, I even have my own personal story in the book, which I didn’t even realize…by the way, I don’t have anybody’s real name in there so if anybody hears this and goes to the book, when you read Brad’s story, that’s actually Rick, me, so I changed everybody’s name in the book. But I did a deal when I was in the real estate business, and this was about 10 years after the fact that I remembered this. I had created a commercial-lease document that saved my company some $26 odd million.

Pete Mockaitis
Well, there you go.

Rick Gillis
Yeah, and that was a big deal. Now, I was in the business of managing properties, selling space, preparing that space, build out, maintaining the grounds, so I was a general manager. I had 14 buildings on 20 acres that I was responsible for. And I’ll tell you the story and I’ll keep it as brief as I can. One morning I got served by a Texas sheriff, And I got sued by a realtor that said that I owed him $8,000 on a deal that I said, “No, I did the renewal. You’re not entitled.” So, I went looking into the original lease file that my predecessor had done, and I saw that, by damn, they had agreed in handwriting that I had missed it, it was my mistake, that he would be paid on all lease renewals.

So, I called my boss and I said, “Send me a cheque for $8,000.” We had 26 office parks across the nation so it was a big company. He sends me a cheque for $8,000, I paid it, I paid the realtor, I went back to the office, and I told my secretary, “Gaye, you and I are going to go through every lease, and we’re going to put a cover sheet, and we’re going to note any anomalies that happened in these leases so this will never happen again.”

A few months later, my boss comes to town and he’s looking through some of the leases, and he goes, “What’s this cover sheet?” Well, long story short, I had solved a problem that I didn’t even realize was national. He took it back to corporate, and we had 26 office parks, so about three months later I had 25 general managers really upset with me because they had to do what I had done, but I saved the company an enormous amount of money in legal.

Now, I maintain, Pete, and I know this might be a little la, la, but I maintain that people regularly do good things above and beyond their regular daily job that they’re not aware of, they don’t watch out for this, I missed my own and I was a sales guy. So, ten years later, I was working with a client on the phone when, all of a sudden, I remembered this. I went to my whiteboard, wrote it down, and now it’s a story in the book.

Pete Mockaitis
Certainly. So, that is a fine example. So, that was outside your daily kind of your day job in terms of like your day-to-day normal recurring responsibilities, that you found something, you got proactive to make sure it didn’t happen again. And then when you shared that and it gets extrapolated over broader-based properties, it really adds up in terms of we would pay lawyers or whomever this much money to make that happen. So, that’s interesting. There’s a specific source of savings there, like legal fees not spent, that you can determine based on, I guess if you know, just how many hours legal work versus their hourly rate.

Rick Gillis
Well, I’ll tell you what, that’s an excellent point because, the fact is, the company has been out of business. It was acquired many, many years ago, so I didn’t have a source to go back and get hard numbers. So, one of the things that I’ve developed along this line is what I call the defensible statement. And that is if you walk in and tell me, let’s say I’m hiring a sales guy, and you tell me you sold a billion dollars or something last year, you better be able to prove it, you better have it in writing. But if you came to me and I’m used to doing million-dollar deals, half million-dollar deals, and you tell me that last year you did a million dollars, I’ll take that, I’ll accept it, we’ll question it, we’ll talk about it, give me some head up.

So, the defensible statement is a really important component to this. I did not have any hard numbers, it was well over ten years after the fact, I went and took, which if I was interviewing with a commercial real estate firm, and I told them that I saved 1% of my gross revenue annually by not having to spend these thousands of dollars in covering mistakes, and I had a little bit more information for this. I had the smallest office park in El Paso of the entire nation. I had 400,000 net rentable square feet. Some of the bigger guys in Miami, Virginia, Richmond, Virginia, and Atlanta, they had like two million square feet.

So, using my numbers and taking 1% of my gross revenue and multiplying that out, that comes to like $26,000 based on what I was supposed to be generating gross revenue at that time. And then I multiplied that out times 26 office parks, keeping in mind that I used my office park, which was the smallest venue, and took that across. My point is it’s very defensible, so you got be careful, you got to keep that in mind.

Pete Mockaitis
You’re super conservative there. It’s like at least this amount but probably much more.

Rick Gillis
But I’m comfortable saying more, yes.

Pete Mockaitis
If I may, how did we arrive at the 1%?

Rick Gillis
I figured 1%, at the time I was quoting $12 a square foot per space, I had 400,000 net rentable, so $12 times…it was $4,800,000 times 1%, I came down to where I was about $26,000, I think, I saved annually, or something. And then I multiplied that out times the 26 office parks because it was of benefit to the entire organization. So, that’s exactly how I extracted that number.

But let me give you another, for instance, because this is not all about just big-money players. One of the stories in “The Quotient” is a woman, a friend of mine, who is an executive assistant. A matter of fact, right now, she’s making about $84,000-$86,000 a year, and we were talking recently, and I told her, I said, “Certainly, there’s somewhere you have saved some money for your organization.” I mean, she’s the executive assistant to the CEO so right there she’s worth more than just another administrative assistant.

But she told me that one day she had been assigned to review some contracts, and she found $77,000 of unclaimed discounts that the person who was doing the job was supposed to have been doing, had not claimed it. This was one eight-hour day she achieved the $77,000 gain. And I told her, I said, “I know you’re not being paid $77,000 a month,” because, like I said, she’s making $86,000 a year. So, in that one instant, she had a value, a savings, that she could share that was above and beyond, and people do this stuff all the time. I really believe that, Pete. I really do.

Pete Mockaitis
Certainly, yeah. Okay. So, you get after your value by any number of things, think about that, the money that you brought in or the money that you saved, and then you might need a little bit of help with Excel or Google Sheets to say, “Hey, what’s the value and what’s the parameter, and then why did I make…why did I say that’s the number? And here’s why it’s conservative.” So, it might just be three to ten lines of Excel, but that’s fine, to sort of make that defensible statement.

So, okay, we’re getting out the contribution side of things and your payment you know. So, then these numbers, sometimes you said 5, 35, 3,000, I mean, boy, what’s a good quotient? And what level of quotient makes you say, “Hey, I can probably get a raise now”?

Rick Gillis
I’ll tell you, that’s exactly based on, entirely based on what you do. Like I said, the quotient of equal 1, a Q1 is the person who’s doing exactly what they’re supposed to be doing but a company can’t work on that. If somebody is hiring a coder, and they’re going to try to take on, let’s just say Facebook, their quotient might be a thousand to one, “Let’s pay this person $350,000, bonus, etc., options.” That person needs to deliver, at minimum, $3.5 million annually to be a quotient of 1, if you want to baseline all the positions in your company, which you can do if you want to get everybody down to a Q of 1. In other words, that is what that person would be required to deliver before they’d even can see a bonus or something like that. So, there’s lots of different ways to figure this.

And let me tell you another thing too, Pete, that’s really pretty fascinating. I’m not an MBA, I’m not a Ph.D., this comes from just 22 years of working with people and seeing these different kinds of values developing. I really had to stop and think about this from the employee’s point of view, from a manager’s point of view, from a regional’s point of view, see, because you can use the quotient across branch, division, department, you can use it in all. It works all across these different levels. And I’m not saying the controllers don’t already know this stuff. I do understand that. But I think there’s a need here for two things to happen.

Number one, the worker to embrace this and recognize what they’re doing, and also for the employer to understand that if they get somebody who’s more engaged and owns this, they’re going to be a better, more motivated, more engaged worker, and this thing is a double-edged sword. It also cuts the other way, and you get to find out the people who really aren’t carrying their weight because, too often, especially in the big companies, they’re working with a pool of people and it’s kind of like, “Let’s don’t rock the boat, let’s don’t shake things up.”

But, now, what is important to this discussion is that the individual is responsible for pointing out their wins. A company is not responsible. Your company is not required to point out when you have a really big win. For instance, when I discovered and saved my real estate company all that money, it was not their responsibility. Their responsibility to me was to pay me fairly, pay me what we agreed on, pay my, etc. my healthcare, whatever. But that’s it. If I do anything extraordinary, good for the company. That’s to their benefit.

But when I think back on this, and I saved the company millions of dollars, it would’ve been neat, it would’ve been smarter of me had I been able to go to annual review, annual end of your…and say, “Look, I did this. I’m worth a bonus. I’m worth a promotion. I’m worth something, a raise,” and that’s where I think the motivated individual who goes to their supervisor, and/or supervisors, I always strongly recommend you don’t just share this information with your boss but your boss’ boss, and her boss as well, because everybody should know you are an up-and-comer, you’re motivated, you’re engaged.

Pete Mockaitis
Certainly. So, you get some great achievements and hopefully they amount to your whole bunch of value and contribution. And so then, part of the game is quantifying that, capturing that, communicating that. And then, yeah, what are some of the best practices for sharing your accomplishments in a way that is not obnoxious and can get you some benefits?

Rick Gillis
Good question. Let me tell you what. Let’s face it, there’s a lot of people who are not comfortable with this. We’re taught not to brag, and I appreciate that. There’s no question, that’s really, really important. But bragging and boasting is not the same as informing and sharing those with you. Let’s say, for instance, you hop in the elevator and it’s you and the CEO, and that does happen to some people. What are you going to say? You have an opportunity to express your value to somebody who can really make an impact on your life, and you say, “Hey, grand weather we’re having today, isn’t it?” Well, you’ve just lost an opportunity.

So, one of the things that I’m about, and I do promote this in the book, you have to be continuously working these, you have to be continuously thinking these things, and you should always have one ready, I’m not joking, rehearsal ready, that you can say, “Hey, Mr. CEO, it’s really nice to see you. How are you today?” “Great. What’s going on?” “Well, I’d like you to know about this commercial-lease document I just created that saved the company, I think, on the order of several million dollars.” When you tell somebody that, first of all, they have been in your place, they do appreciate it. I maintain strongly that supervision, your immediate boss maybe not so much, but above and beyond that, really likes to hear wins, and that’s a fair thing that you can have something available that you could share with the CEO or somebody else.

Once again, I’m going to go back to the same place where this is for the motivated individual who’s going to study this, watch it, because one of the things that is going on, and as a salesperson, a sales professional is always doing this and always thinking about, “If I close this deal, if I close that deal, if I close this other deal, these create different revenue  streams, and etc.” But the person who is working the regular job, who’s only focused on that one thing, does other things and they really need to be thinking about the possibility that there could be quotients for their regular work, and there could be more than one or two or three of those, plus there can be those quotients for any value they create above and beyond what is requested of them to do.

Pete Mockaitis
Yes. Well, maybe can you share with us one of your Q studies, sort of a fun story of a professional who used this concept, ran with it, and found themselves with a whole lot more money as a result?

Rick Gillis
So, the Q studies come out of real people I have worked with in the past who landed very good jobs as a result of my helping them in their job search, but I went back to them, after the fact, in other words, I went through my files and I found, “Here’s Jeff, and here’s Hannah, and here’s whoever,” and I called them up and I said, “Hey, I’d like to use your story in this new book. Can you tell me what you were making at that time when you achieved this?”

See, where this came from, Pete, the secret sauce in my working with job seekers is, it was not negotiable, I required them to put together an accomplishments inventory. This requirement of providing me eight to ten very best accomplishments, I didn’t need to know the who, what, where, when, why and how behind each one, and so these people would prepare me 8, 10, 12, 15 pages of these things.

And I remember one chemical engineer, this woman I worked with, she handed me 18 pages, handwritten, of accomplishments, and she handed me this whole pile, and I glanced at the first one, I handed it to her, and I glanced at the next one, I handed it to her, and she got upset with me, she said, “You mean you’re not going to read those?” And I said, “No, that wasn’t for me. I don’t even speak chemical engineering. That was for you to prepare you for the interview, and now we have the information, the ammunition to create your resume, now we’re ready to set you out and get you working.”

And so, I did this with everybody, and anybody would not accept that they had to put together an accomplishments inventory for me, I didn’t accept them as a client. So, that has always been my secret sauce, and when these people get to interview, they’re absolutely ready. So, I went back and I took some of those accomplishment statements from different people, and I called them up and I said, “What were you making at that time?” And I was able to, and once again, this is really important to the Q studies, I had to use workarounds.

For instance, I had to use the dollar amount for this one guy who’s a construction supervisor, where he was able to build a bridge. It was a gigantic piece of cement they had laid for a construction, and he found that he was losing, literally at the rate of five to seven minutes a day, some 1200 workers having to walk all around this big monolith they had built.

So, he took it upon himself to build a bridge. He just had a bunch of aluminum and steel, and he fabricated a bridge that took these people straight across instead of going around, saved five, six, seven minutes, but these people were making on the order of $40+ an hour. And when you multiply that $40 times take out to get the minute rate, multiply that times how many dollars are out there or how many people were working, and all of a sudden, this guy was starting to save some real money.

And, at the time, he was making, I don’t remember exactly right now, but he was making on the order of $48 to $50 an hour, so I can take his hourly rate and see that he saved all these minutes when we divide that by 60 minutes, we get lots of hours, and then we’re able to divide that by that total by what he was making, and we do come up with good, reasonable, defensible quotient for my client.

Pete Mockaitis
Right. And so then, he got a promotion or a raise as a result of this?

Rick Gillis
Actually, he left and he’s now reporting to the CEO with one of the biggest energy…one of the biggest electric-generating companies in the United States. And, yeah, I’ll tell you what, I’m going to slap myself on the back for this one because he actually took my accomplishments kind of concept and he’s now the director of best practices for this very, very large utility in the United States. And so, he took what I showed him, what I taught him, and took it and made it even better for himself. So, yeah, I’m really proud of him.

Pete Mockaitis
Very cool. Okay. So, then a real part of that is making sure that when you do that great stuff, you take a moment to capture it and quantify it. And then when it comes to conveying it, do you have any pro tips and do’s and don’ts for asking for some of that value you created to come back to you?

Rick Gillis
Yeah, and I tell you what, I think this really comes down to the annual performance review. I think one of the things that I want for performance reviews to become, and, by the way, I do have a model for a quotient-based performance review in the book.

Pete Mockaitis
Yeah, so once you’ve identified this value, how do you go and ask for it?

Rick Gillis
The fact is I think that annual reviews should be more objective than subjective. What that does, that puts the onus on the worker, the person who’s reporting, to walk in with this information and be able to share it and show it. And so, once again, I go back to the place where this has to be the motivated worker.

And, by the way, this keeping, having a source of keeping your accomplishments in front of you, it’s called your calendar. I can go back and look in my daily calendar, and go back several months, and I can see where I started working with X client who is now a senior vice president at such and such. And those are a value to me because I don’t have a hard dollar value because I don’t claim their salary. They pay me but I am very proud of the fact that that person back in the workforce is now buying a home and buying cars and sending their kids to school and spending that income to the good of the economy.

The annual performance review is when you need to go in and it needs to be a two-way conversation as opposed to the set your goals at the beginning of the year, review your goals in the middle of the year, and at the end of the year, take what your boss is going to tell you. One of the things that I say is do not assume that your immediate supervisor knows exactly what you do. I consider that tragic career mistake number one, and that’s also why I say don’t ever be afraid or ashamed of sharing your wins with your immediate supervisor and her boss and his boss and her boss, because up and down the line protects you in the sense that, number one, your boss may be very, very subjective and really run you into the ground and maybe you’re that quiet person that’s not good at defending themselves. Or the other side of that is when his or her supervisors know about you, and they turn in a subpar appraisal, maybe they’re going to modify some things
So, yes, there’s a little bit of politics in here but, mostly, I think it’s about being appropriate, and that’s a very big term for me, is being appropriate, no bragging, no boasting. And for the person who does not know how to do this, you can practice with your friends, practice with your coworkers. And let me say something about coworkers while I’m there. This is not about team. This is about I, me, and mine. This is always about yourself, because if you were part of a team, just like you would in a resume, bring out what your contribution was to the group. Don’t focus on what the big win was for the team.

Pete Mockaitis
And I like the example you made with the CEO in the elevator. It’s less like, “Oh, aren’t I amazing because of all of these things?” It’s just sort of like when that question naturally comes up, “Hey, what have you been up to? What have you been working on? What’s new?” you can tell them, and you maybe have some enthusiasm, and not so much that you’re awesome, but rather that this was kind of exciting that you captured an opportunity. It’s like, “Well, one interesting thing was, in reviewing our leases, we discovered this which can result in just about $26 million.” And then they go, “Oh, cool. Duly noted.”

Rick Gillis
You know, Pete, what I call this is the what and wow. I have a formula that is when you give me a list of your accomplishments, and I take one of them, I reduce each accomplishment down to “Responsible for blank that resulted in blank” and I call that the what and the wow, “Responsible for what that resulted in wow.” So, for instance, for me to tell you, to go back to my real estate win, is to say, “I was responsible for creating a commercial-lease document that resulted in the savings of the company of about $26 million.” The person hearing this, in their head they’re going, “Whoa! Wow!”

So, what they really are thinking though is, “If you did that for them, can you do that for me?” And that’s when you need to be able to discuss the who, what, where, when, how and why because they’re going to ask you, “How did you do that?” And when somebody says, “How did you do that?” they really don’t care about so much how you did it, but, “Can you do it for me?” And that also applies within companies, within branches, within departments within companies, hey, people are rating employees all the time within companies. So, they’re responsible for what that resulted in wow, that is a formula, and that’s very apparent in the quotient.

Pete Mockaitis
Okay. Well, tell me, Rick, anything else you want to make sure to mention before we shift gears and hear about some of your favorite things?

Rick Gillis
No. I’ll tell you what, that’s funny you say that because, and I hold on, and I even did homework for you, buddy.

Pete Mockaitis
Oh, well, thank you. So, tell us a favorite quote, something you find inspiring.

Rick Gillis
Well, I’ll tell you what, my favorite quote comes from movie. And I don’t know if you know the movie. It’s about Alan Turing, World War II.

Pete Mockaitis
Oh, yes, I did see that.

Rick Gillis
“Sometimes it is the people no one can imagine who do the things no one can imagine.” I use that in my presentations because I want everybody to know that they do have value and they are special. Now, one thing about that quote, I was so taken with it that I actually Googled it and I found that this guy who wrote the book about Alan Turing, I reached out to him in England, and he was just cranky as hell. He said, “I didn’t write that. Some scriptwriter wrote it.” And I went, “Okay, then I won’t give you credit.” And that’s why I tell people it’s from “The Imagination Game” movie, Alan Turing did not say that.

Pete Mockaitis
That’s funny.

Rick Gillis
Yeah, but it’s a great quote.

Pete Mockaitis
Oh, okay. And a favorite book?

Rick Gillis
But I’ll tell you one of my favorites, by Lou Adler. He wrote a book called “The Essential Guide for Hiring and Getting Hired,” and it’s a really smart book for job seekers. And the reason is he wrote it for staffing companies, recruiters, how to hire. And then, after each chapter, he tells the job seeker how to use that same information to their benefit. And Lou Adler, he’s a great guy, very smart.

Pete Mockaitis
All right. And a favorite habit?

Rick Gillis
My favorite habit would be on LinkedIn, and this is LinkedIn-specific, I try to respond to every request to connect with a personal note. And it doesn’t always generate a conversation, but quite often it does, so that’s my personal practice because I’m very aggressive.

Pete Mockaitis
And is there a favorite nugget you share that really seems to connect and resonate, and is quoted back to you often?

Rick Gillis
Yeah. Well, it’s the subtitle. It kind of became the subtitle to the book, and that’s “The proper pay for the best performance.” Equal pay for equal work, I just don’t agree with that anymore, now that I’ve really thought it through. So, the proper pay for the best performance.

Pete Mockaitis
And if folks want to learn or get in touch, where would you point them?

Rick Gillis
RickGillis.com, and if they want to either connect with me or follow me on LinkedIn.

Pete Mockaitis
Okay. And do you have a final challenge or call to action for folks seeking to be awesome at their jobs?

Rick Gillis
Yes. Your work does not speak for itself. You do.

Pete Mockaitis
All right. Rick, this has been a lot of fun. I wish you lots of luck with your motorcycle adventures, and working with folks, and making the biggest impact you’re making.

Rick Gillis
Pete, thank you very much for having me. I appreciate your questions and I can tell you could go a lot deeper on this than I can. You’re the bomb, dude.

531: How to Differentiate Yourself to Get Promoted with Stan Silverman

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"That's really the only way to be successful long term, you have to take risks... and try something new and different."

Stan Silverman discusses how being different and taking risks pays off for your career.

You’ll Learn:

  1. Why failing is the first step to achieving more at work
  2. How to take calculated risks that win at work
  3. Why and how to break policy

About Stan:

Stan Silverman is the founder and CEO of Silverman Leadership. He is also a speaker, advisor, and the author of Be Different! The Key to Business and Career Success. He is a nationally syndicated writer on the topics of leadership, entrepreneurship, and corporate governance, writing for several publications such as the Philadelphia Business Journal.  

Silverman has served on several public, private, private equity and nonprofit boards and currently sits as the vice-chairman of the board of trustees at Drexel University. He earned his Bachelor of Science degree in chemical engineering and an MBA degree from Drexel University.  He is also an alumnus of the Advanced Management Program at the Harvard Business School.

Items mentioned in the show

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Stan Silverman Interview Transcript

Pete Mockaitis
Stan, thanks for joining us here on the How to be Awesome at Your Job podcast.

Stan Silverman
Well, Pete, thanks for inviting me. I look forward to our discussion.

Pete Mockaitis
I’m looking forward to it as well. And you’ve got a pretty unique story, well, maybe for nowadays. But I want to hear the scoop. First of all, so you had 11 separate roles at PQ Corporation and ended at the top, so that’s pretty cool. We’ll dig into some of that. But, I guess, I want to know first, what led you to stick with one organization for such a long duration in your career?

Stan Silverman
Well, I never intended to stay with PQ for so long but I kept on getting promoted. And the hierarchy above me was very, very supportive of what I was doing and it was just a great company to work for. And so, I stayed through 11 jobs, including a stint in Canada as president of National Silicates Ltd, PQ’s Canadian subsidiary, came back as president of PQ’s worldwide industrial chemicals group, became the COO of the company and then, eventually, the CEO.

Pete Mockaitis
Cool. Well, I’d love to dig into some particular moments in which you did some things that were differentiated and noteworthy such that you were the one they picked for the promotion. So, maybe we can go back in time and let’s start semi-chronologically in terms of towards can you maybe orient us to sort of what was your role, what was your set of responsibilities, and how did you win promotion again and again?

Stan Silverman
Well, thanks for allowing me to go through some history here. So, as I look back on my career at PQ, I did a lot of firsts. I was the first one at the company to use a computer to solve an engineering problem and a finance problem versus just pushing numbers around through the accounting system. And so, way back then, and a lot of our listeners are much too young to remember this but we did a lot of work with time sharing, so we access a mainframe computer that was remote through a teletype machine that did 15 characters per second that we ran at the time on the outside computer. And I was the first one at the company to build a model for doing this kind of cashflow calculations, looking at the financial attractiveness of various projects. And I did this while I was an engineer.

And so, I gravitated from process engineering to looking into the financial attractiveness of the projects I was working on and so that was a first at the company. And from that point, I moved onto production planning, to financial analysis where I was evaluating the various alternatives for placing a plan in this city versus that city, for doing this versus that, and at the time I was getting my MBA at Drexel University at night. And so, I tied in what I was doing at work with my work at the university. I wrote a thesis for my masters’ program which was a Monte Carlo simulation, which looked at various alternatives using probabilistic estimates for inputs into a cashflow analysis. And I was able to test this at PQ on the various projects that we were working on.

And so, gradually, slowly but surely, I moved from an engineering position to a financial analyst position, to my first product manager position at the company where I moved over to the marketing side of the company. I was responsible for three product lines.

Pete Mockaitis
Okay. Boy, there’s a lot in there I’d love to unpack. And so, well, let’s start with some of these firsts with regard to, so you’re the first to use a computer to solve some of these financial questions using the discounted cashflow analysis. Well, what got into you that made you say, “You know what, this is what I’m going to go do because I think it would probably be more normative for engineers to continue doing their engineering.” But you popped your head up and said, “No, I’m going to check out something different.” How did that come about?

Stan Silverman
Well, I’ve always been curious about things which would allow me to grow and develop my skills in other areas other than engineering. And when I got my chemical engineering degree, I decided that I did not want to rise up through the engineering route because I thought that was too limited. I wanted to follow the business route, and that’s why I got my MBA so that I would be in positions where I would make strategic decisions with respect to the future of my businesses and, eventually, the company rather than building plants for the products that we made.

And it was just an interest in doing that, in making decisions on the strategic side of the business versus the engineering side of the business that pushed me and led me to get my MBA degree. And I’ve always been very curious. I’ve been testing new things, looking at new things, trying out things, and, really, that’s what drove me my entire career is that curiosity. And it really goes way, way back to when I was a teenager. At the age of 12, my dad got me my first chemistry set and I exhausted all the experiments probably within three months, and I got a little bored and I decided that I would try something new. So, I thought it would be really cool if I made gunpowder to pack into a firecracker and set off the firecracker, so I started up on it and learned how to do that with my chemistry set.

Pete Mockaitis
That sounds like fun to me.

Stan Silverman
Yeah, it was really a lot of fun but the creative part wasn’t actually formulating the gunpowder. You can look that up anywhere and at the time we didn’t have the internet so, of course, I had to go to a library to do this. But it was actually designing the fuse to set it off so that I wouldn’t blow my hand apart, I decided that I would run wires from my Lionel train transformer to the firecracker that I built and bury these wires with a matchhead inside the powder and then set it off 30 feet away. And, sure enough, it worked.

And so, this is a future engineer at the age of 13 now, basically, in his backyard fooling around with this stuff. And, of course, in today’s world, you can’t possibly do that because you’d have Homeland Security and the local police department all over you for doing this. And so, we’ve really taken some innocence away from kids that just like to play in the basement or in the backyard or in the garage and just kind of tinker with things. And so, that’s kind of a negative to the world that we’re in. We’ve taken some innocence away from our children in terms of allowing them to just roam and develop.

Pete Mockaitis
Well, I hear that theme. So, the curiosity, the testing, the exploring, trying out new things. I guess, I’m intrigued because I think that this is common, I’d say, part of the human experience, we’re curious, we want to explore and seek new things. And, yet, I think a lot of folks, in the professional setting, experience some fear or a resistance, internal and/or external, so that they sort of shut those instincts down. How do you observe the ways in which professionals kind of shoot themselves in the foot or prevent themselves from exploring and rising as a result?

Stan Silverman
Well, I think it gets down to a feeling of self-confidence in yourself. I coach and counsel a lot of students right now in my career and, of course, with the launching of my book, sort of my fourth career, which we’ll get into in a little later on in the interview. But one of the things I do is I talk to a lot of students today and I talk to a lot of professionals who are stuck, who don’t like what they’re doing, who want to know what the path is to leave what they’re doing and do something more interesting. And, of course, it’s completely up to them. They have to find their own path.

They have a safety blanket in their current position and in their current role, and for 45 years they just never do anything.

And you go to the other extreme, you have people that are constantly developing themselves, constantly pushing forward, trying things, failing sometimes, and, of course, failure is a normal part of life and we should all get used to that. And as I tell the folks that I counsel“You can feel bad that night but the next morning you get up and get back at it because it’s a new day and a new world, and you have to move forward.” I don’t know if you’re familiar with Seth Godin who is a futurist.

Pete Mockaitis
Certainly.

Stan Silverman
He wrote a book called “The Icarus Dilemma,” and he writes about Icarus who, of course, is a character in Greek mythology who flew too close to the sun, his wings melted and fell off his back, and he crashed into the sea. And what Godin says is, “Should’ve Icarus flown lower and safer so he wouldn’t crash into the sea?” And he says, “No, of course not, because it’s actually more dangerous to fly too low than it is to fly too high, because if you fly too low, you’ll never know what you’re made of, and you’ll never deliver the kind of results or contributions to society that society needs.”

And so, I added actually something in my book about that. I also said that if you fly too low and, all of a sudden, your job disappears and technology moves on, and you have to get a new job. If you fly too low, you’ll never know what you’re made of, and it’s harder to get a new job, so fly high, and if you fly too close to the sun and you fail and you crash into the sea, the next morning you get up and fly again.

And that’s what entrepreneurs are taught.  And so, that’s what drives a lot of the comments I make to folks that I coach and counsel.

Pete Mockaitis
But, you know, as you talked about that Icarus metaphor, and we’ve also been talking about finance, my mind is bringing them together as I think about sort of risk-taking and financial investments. Like, if you take no risk and just sort of do what your savings account will do for you, well, then you’re going to kind of crash in the sense of inflation is just sort of taking away your wealth. And so, in essence, in both instances, Icarus, financial investing, and career risk-taking, you have to take some level of risk because none is more dangerous than some.

Stan Silverman
Exactly. And what everybody has to do is learn how to mitigate their risks, so you try to control the risks. And the way you do an investment, of course, investing is that you diversity your portfolio, and so you don’t go after the homeruns every day. You go after the slow and steady. And the slow and steady, by all accounts, and by all the data and all the studies, wins over the long term. So, it’s slow and steady, slow and steady, so you mitigate your risks.

And in business, of course, a lot of people ask me, “Well, what do you mean by mitigating your risks? How do you mitigate risks?” And I always use the example, let’s assume that you’re a manager in your company and you need to make a decision which you have all the authority in the world to make. You don’t have to ask anybody else, you can either make it or not make it. You can go direction A or direction B, it’s up to you. But you feel that it’s risky and you want to mitigate the risk, well, what do you do? Well, you talk to people. You get other people’s opinions. You don’t have to do what they say but you get other people’s opinion so it expands your view of what you may do, or may not do, and you move forward.

A lot of people think that by asking other people their opinion, it’s a weakness. Wrong. It’s a huge strength and you should always be asking people, getting their opinions, getting their input, and you’re going to make the final decision on your own, but at least you have that input. A lot of people don’t realize that when they feel that something is very risky, or even a modicum of risk, and they want to get an opinion, it’s okay to get it. It’s okay to get an opinion before you move forward.

Pete Mockaitis
Well, yeah, I was just about to ask about some strategies and approaches if you do have some of that fear of failure, you don’t want to let go of your safety blanket, well, I guess one point is just you have to.

Stan Silverman
Right.

Pete Mockaitis
But, emotionally, there’s still a bridge to cross. How do you suggest folks do it? One is to seek the wisdom of other counsel. What else?

Stan Silverman
Well, you have to fall back on your experience and your critical judgment and common sense. And so, a lot of the decisions we make, we don’t always have all the information we would like to have, we don’t have that information, and you can’t get it or you don’t have time to get it. So, what do we all do? We fall back on our common sense, a good critical judgment. And when we do that, and when we do have good common sense and critical judgment developed over the years through our experiences, because that’s how you get that, we make a lot more right decisions than we make wrong decisions.

And so, that’s just part of life. You’re going to be making decisions without having all the knowledge and all the information you would like. So, let’s flip it around for a moment and let’s assume that you’re the leader of a group, and you have one of your employees, or many of your employees, actually, making decisions, and sometimes they’re right, and sometimes they’re wrong. You have to allow your employees to make mistakes. It’s the only way they’re going to grow and develop.

And one of the prime responsibilities of every leader is to develop future leaders below them. The only way to do that is to tell them what your expectations are and make sure they have the right resources, and cut them loose to do their thing, and sometimes it’s not going to work out, and sometimes it will work out. But if you have good people reporting to you, and you’ve hired people with good common sense and critical judgment, and allow people to develop that common sense and good critical judgment, you’re going to win in the long term. You’ve going to have a lot more wins than you’re going to have losses, and you just have to tolerate that.

So, there are many bosses that won’t allow their people to make mistakes. Those kinds of people you don’t want in your organization if you’re the board or you’re the CEO. You’ve got to get rid of them because you’re not going to go anywhere. You’re just not going to get anywhere.

Pete Mockaitis
And when you said common sense and critical judgment, I was just chatting with some folks about how that seems to be not so common. And I would love to get your take on are there any particular decision-making frameworks, tools, key questions, you ask yourself to bring forth more common sense and judgment to situations?

Stan Silverman
Well, let’s take a real-life example. Let’s take Starbucks, for example. They’ve been blasted, they’re really blasted a couple times a year for what the baristas or not do in their cafes, and, of course, the most important one, and the one that had huge ramifications around the world, is the one that occurred in Philadelphia about a year or so ago when the barista, at the Starbucks in Center City, Philadelphia near Rittenhouse Square, ordered two gentlemen to leave because they claim they were waiting for their friend to arrive before they ordered something, and they were just sitting there, and she said, “Well, if you don’t order something, I have to ask you to leave.”

And they didn’t leave, so she called the police, the police came and arrested these two guys, they were two African-American gentlemen. And as they were leaving, their friend shows up, and their friend says, “What’s going on?” and they tell him. And, of course, this got blasted all over the world. And, in fact, Starbucks had to shut down their cafes to do sensitivity training in this area. And had the barista exercised good critical judgment and common sense, she would’ve said, “Okay, when you’re ready, you can come up and order something when your friend gets here.” That’s how you diffuse. See, you should always diffuse a situation. These guys weren’t harming anything, they weren’t creating a ruckus, they were sitting at tables that weren’t needed by other people. So, you always diffuse, you always diffuse the situation. And so, she got blasted.

In three or four other instances around the country, baristas have refused, I can’t remember the city, it might have been Arizona where a pregnant woman came in and wanted to use the bathroom, and the barista said, “You can’t use it unless you buy something.” And then the news report claims that even after her husband offered to buy something, she wasn’t allowed to use the bathroom. Well, what were they thinking?

So, therefore, one of my prime tenets whenever I coach and counsel future leaders and current leaders, is don’t hire anybody if they don’t have common sense and good critical judgment. Do not hire them especially if they’re customer-facing. Do not hire them even internally, even if they’re not customer-facing. You don’t hire these people. And there are tests to test for this which, of course, aren’t 100% but you don’t want to hire people who don’t exercise common sense and good critical judgment because why would you want to get blasted for a mistake they make on social media which, of course, happens within minutes around the world, and it kills your reputation. It kills your reputation. And then, of course, you have to rebuild that reputation but you never really regain it back.

Pete Mockaitis
Yeah. And so, when you say test for this, are you talking about commercially-available assessments?

Stan Silverman
Oh, yes. There are tests for it.

Pete Mockaitis
Do you have a fave that you lean on or have historically?

Stan Silverman
No, actually, I don’t. When I hire people, I interview them at length and I talk about I want them to explain their experiences when they’ve had to handle certain situations which were sensitive. I do it through interview but there are tests, there are commercially-available tests which can test for that. Among other things, they can test for new employees.

Pete Mockaitis
And it’s interesting, and I wonder, maybe it’s just too expansive and complex to boil down and to a couple of rules of thumb because it’s sort of like you would hope that you wouldn’t have to tell somebody, “Don’t make people leave. Allow folks to use the bathroom.” And I guess, hey, some operational manuals will spell it out, and that could be helpful, certainly, if folks don’t have that critical reasoning or judgment. So, it seems like you shared one principle there in terms of when possible try to diffuse situations as opposed to inflame them. Good rule of thumb. I think that would serve 99% of us well just about all the time. Any other key principles that you come back to again and again?

Stan Silverman
Well, I have a key principle which a lot of CEOs don’t agree with me when I give speeches in front of meetings of leaders. I get a lot of pushback on this.

And I’ll give you my aha. So, I’m a 26-year old business manager for my company and we’re making a product on the West Coast which goes into pharmaceuticals, and I get a call from the plant that the plant manager just discovered that there’s some iron filings in the product that weren’t picked out by the magnet, and he gave me the lot numbers. And so, this product had to come back. It will have to come back anyway but especially for going to a pharmaceutical, it has to come back.

The problem is I don’t have the authority to order a recall. My boss and the CEO were traveling in Europe, and this is the years before cellphones and before email and before text messaging, and every moment, almost every hour, every day that we wait to recall the product it goes further and further into distribution and, eventually, perhaps, gets into one of our customers’ final products, so the costs of recalling this product goes up exponentially every day.

And so, I made the decision at my young age to recall the product, and my people are saying, “Stan, you don’t have the authority to recall the product.” I said, “It’s got to come back. It’s got to come back.” And so, I said to them, “Either I’m going to be celebrated or terminated.” So, I recalled the product. And when the two guys got back, my boss who was vice president and general manager of the industrial group and the CEO came back, I told them what I did and they celebrated me, they said, “You did the right thing.”

So, here I am, a 26-year old, just starting out my career, a couple years into my career, thinking, “Boy, I’ve just learned something.”

And so, that has governed my management leadership philosophy that I give my people permission to do so.

Pete Mockaitis
Yes. Well, I think that’s dead-on and I can understand why senior executives, that makes them uncomfortable. It’s sort of like, “I’m not fully confident that I have the people in my organization I can trust with that.”

Stan Silverman
Well, let me give you the perfect example. So, I’m not going to name the company, okay? I won’t name the company. But I’m waiting for this to happen so I can write an article about it. And so, here you have a person who greets customers at the door when they come in, and that’s the person’s job, that’s the employee’s job. And the employee sees an elderly individual pushing a cart full of product that they just bought in the store out to their car, and they’re having trouble pushing the cart. So, I’ll use the masculine, he leaves his post to help unload the cart into the customer’s trunk and returns back two minutes later, or three minutes later. And because he left his post, and that broke policy, the store manager fires that individual.

Pete Mockaitis
This happened or you’re waiting for this to happen?

Stan Silverman
No, I’m just waiting for it to happen so I can write about it, right?

Pete Mockaitis
It’s probably happened somewhere, we just don’t know it.

Stan Silverman
I’m waiting so I can write about it, right? And so, this is all hypothetical and, of course, I’m not naming any store. And so, the store manager fires this individual, and so if I was the regional manager of all the bunch of stores in the region and I found that that’s what happened, I would probably fire the store manager because you didn’t allow your employee to break policy for the good of the company. It didn’t hurt for him to be away for two or three minutes. In fact, he created a lot of goodwill by helping this elderly individual load the car. So, he broke policy, so what? Again, you diffuse the situation. There’s no harm and it was in the best interest of the company to do so.

And you wouldn’t believe how many people disagree with me. I have a lot of CEOs and a lot of senior leadership, when I speak about this, I do a lot of speaking on various topics, and when I describe this, they push back and say, “No, no, no, no , no, that person should never break policy.” Well, of course, they should.

Pete Mockaitis
Certainly. Well, I’m in your camp and I think it all just depends on who did you hire and how much do you trust them.

Stan Silverman
Exactly.

Pete Mockaitis
And really what’s at stake. Is the greeter also a loss-prevention person, and if they left their post, $50,000 worth of high-electronics are going to go out the door? I mean, maybe that’s a different scenario, but most likely there’s very little downside and very much upside to helping a customer out.

Stan Silverman
So, let’s look at the extreme. I always like to test the outside of the envelope. So, let’s look at the extreme, okay? So, that’s at one end of the extreme. The other end of the extreme is that you’re running a nuclear power plant making electricity. You never, ever, ever want the operators of that plant to break policy by themselves, ever, because the downside is catastrophic. And so, therefore, if something has to be done, and it could be different than policy, you want to get that checked up, up and down the line, and have a lot of people involved in that discussion before anything ever gets done.

And so, it depends on the situation that you’re in. Look at Boeing today, Boeing was announced that the CEO was terminated by the board because of the 737 max issues of the past year. And, of course, if you go all the way back, the FAA allowed Boeing to do a lot of the quality checks and balances that were really the job of the FAA. They delegated that down to the company and to the engineers within the company.

Well, I got to tell you that is closer to the nuclear power plant example that I just gave. If I was the FAA, I would never ever delegate that down. And if I was Boeing, I would never permit us to do that. That’s the job of the FAA. So, the best friend of the CEO at Boeing is to have the FAA do their independent checks and certification of a plane and not have my people do it. I would never allow my people to do it because the consequence of a mistake is catastrophic. They had two airline crashes.

And let’s go to the other end. So, I’m the CEO of my company, and in our chemical plants, we allow the chemical operators of the plant to do quality assurance on the product they ship out and so, therefore, they have ownership in the production because they have ownership in the quality. And so, the worst that can happen is the place don’t go down, but a product is out that’s off spec, and the customer tests it, and they send it back, so it costs us some money.

And so, you have to look along the continuum where that decision gets made. For nuclear power plants and for aircraft certification, you don’t want anybody making unilateral decisions that break policy. On the other end of the extreme, when you see a customer carrying out packages to the car and they need help, or when you’re testing a chemical product where the only downside is it’s off spec, maybe that’s way over to the end, so you got to figure out where you are in the continuum.

Pete Mockaitis
Well, that really makes sense and adds up, yes. I’d like to get your view, then, when it comes to kind of zooming out and thinking across these promotions, you’ve said part of it was, first, curiosity and pursuing new things, and you’re finding the self-confidence, and managing your risks and delivering value. Any other kind of core things that you tend to see over and over again that makes the difference between those who get the promotion and those who are passed over for the promotion?

Stan Silverman
Yes. In fact, I’d like to tell you a story which is my favorite story which really was most impactful to me. And I think to answer your question, people that get promoted learn lessons from everybody within the organization. So, I’m president of our Canadian company and a subsidiary of PQ Corporation, and we had a small production unit which produced a product for high-temperature refractory cements…

Stan Silverman
Okay. And so, when I was president of our Canadian company, we had a production unit which made a product for high temperature, an acid-resistant refractory cements. The unit was sold out. It was at capacity. It was a very high-margin product. The product was growing, and we were basically out of capacity. So, the one gentleman who operated this unit was working all kinds of overtime so we needed to expand the unit.

And our marketing department came over with projections that we really needed a 50% increase in capacity to handle the demand over the next five, to six, to seven years. And so, rather than give the project to one of the corporate engineers, we decided that that would not be the best thing to do. This was a very small unit. I estimated that, to expand the unit by 50%, it’s probably half a million-dollar job, and the engineers, of course, want to work on millions and 10 million-dollar projects because that’s how they get promoted because they’re very complex projects. This is a very simple project.

So, the plant manager and I decided to give the assignment to the operator who runs the unit and ask him, “Well, how would you expand this unit?” So, we called Luigi Pail, the operator of the plant, of this production unit into my office, and he looks around and says, “Am I being fired?” I said, “Well, Luigi, why do think that?” He said, “I’ve never been to your office.” I say, “No, no, no, we’re not going to fire you. In fact, we want to ask you how to expand your unit because we know that you’re working all kinds of overtime hours, it’s hard work. We want to expand the unit. So, how do you think we should do it?” He says, “Oh, I know exactly how to do it but nobody’s ever asked me.”

Pete Mockaitis
There you go.

Stan Silverman
“You’re the first person to ever ask me how I can expand. You know, I’ve been working over the last 10 years.” I said, “Well, would you work on it?” He said, “Yes, but I need the help of a mechanic.” And very quickly we said, “Pick your man.” He says, “I pick Don McNeil,” who probably was the best mechanic in the planet at the time. Excellent mechanic but he was terrible with respect to labor, management relationships, always filing grievances, always wanted to go on strike, bad mouthing, he was a negative-opinion leader in the plant, and I’m thinking, “This will be a huge disaster,” right?

So, we tell Luigi, “Well, you ask Don tomorrow morning and then we’ll ask him in the afternoon and see if he’ll do this.” So, we go out and see Don the next afternoon, and he says, “Oh, I spoke with Luigi this morning. I’ll do this but I’m not doing it for you. I’m going to help him expand his unit because Luigi is my friend and I’m not doing it for you. I just want you to understand that.” I said, “Okay, Don, we understand. Go to work.”

Pete Mockaitis
Noted.

Stan Silverman
Well, four weeks later, they come into my office and they present the scope of the expansion to get a 50% increase in capacity, and this is, of course, before PowerPoint. This is when you had these overhead projectors, and you had these slides that you put on the overhead projectors. So, they explained the scope, and I’m thinking, “My God, this is so creative. I never would’ve thought of this.” Don McNeil did something that we never asked him to do, he cost-estimated the project out. Well, of course, Don works with contractors all the time so he knows what it costs to do things. He comes out with an estimate of $260,000 to do the project, I’m guessing 500, right?

So, we say to them, “Okay, guys, we’re going to do it. You’re in charge of doing it. You’re in charge of managing the project.” “Well, that’s not our job. That’s a project manager’s job.” I said, “Hold up. The unit is going to be down for a period of time so you have to work in the construction along with the production. You’re the perfect people to do this.” “Well, okay, we’ll do it.”

Two months later, the plant is done, the unit comes back up on stream, withing seven days we’re at 50% increase in capacity, exactly what we asked him to do. Within two weeks they’re at 64% increase in capacity. The product is coming out much tighter within specification, perfect quality, much easier for Luigi to operate the plant and were often running, and Don brings the project in at $250,000, 10,000 less than what he told us it would be. I think he did that on purpose.

And so, all four of us changed fundamentally. Don McNeil is now walking through the plant telling his fellow union brethren, the blue-collar workers that operate the plant that, “You know, these guys in management, they’re not so bad. They trusted me for what I can do with my mind in addition to what I can do with my hands.” You know how powerful that statement is? And he’s now a positive-opinion leader in the plant. Luigi changed in this way.

And so, about two weeks after startup of his unit, I’m taking a visitor through the entire plant, we stopped at his production unit, and Luigi says, “I’ll take the visitor on tour of my production unit.” I said, “Okay.” So, he does so, and after the tour, we head off to the other six production units within the plant. The next day, Luigi talks to me and says, “You know why I did what I did yesterday?” I said, “What did you do?” He says, “I took the visitor for the tour.” I said, “Yeah, I know.” He said, “I did it because this is my plant not…” I’m sorry, “This is my unit, not your unit. This is my unit.”

We created a sense of ownership in Luigi for his production unit, and I’m thinking, “Oh, my God. How come I didn’t learn this right out of school?” You have to create sense of ownerships in everybody for what they do within the company, and then great things will happen. And that has stuck with me for the decades after that incident occurred. And, sure enough, it’s proven true every single time you create a sense of ownership in people in terms of what they do, and great things will happen.

And so, therefore, I learned something from an hourly guy, probably one, two, three, four levels below me in a production plant, and everybody realizes they can learn from everybody including the people at the bottom of the organization.

Pete Mockaitis
Stan, I love it. Good stuff. Thank you. Tell me, anything else you want to make sure to mention before we shift gears and hear about some of your favorite things?

Stan Silverman
Well, I do. But I think let’s move on and I’ll kind of weave it in as we go along if the opportunity arises.

Pete Mockaitis
Oh, sure thing. How about a favorite quote, something you find inspiring?

Stan Silverman
My favorite quote is “Never lie to yourself,” So, I have a chapter in my book, Chapter 1-5 which is about the Challenger explosion and disaster which all of us are very familiar with. And it turns out that the Thiokol engineers who designed the O-rings for the solid rocket boosters, basically, advised NASA not to launch the shuttle on the day they wanted to launch because the temperature outside, the ambient temperature, was 30 degrees Fahrenheit, and they designed the O-rings for 40 degrees Fahrenheit.

And they felt the O-rings were going to be too brittle and there was a huge risk of leakage of fuel around the O-rings because they were brittle which would, of course, cause a disaster. And the Thiokol engineers lost the battle because they faced a huge, huge pressure by NASA. And I’m just going to quote two comments, I’m looking it up now, by a NASA manager. I say one NASA manager is quoted as saying, “I’m appalled by your recommendation, Thiokol.” Another NASA manager said, “My God, Thiokol, when do you want me to launch, next April?”

So, they didn’t listen to their experts. They didn’t listen to their experts. They went ahead and launched, and, of course, we know what the result was. We lost the shuttle plus five astronauts. And that taught me a huge lesson. The lesson is you always have to listen to your experts. Always listen to your experts. Don’t discount them. That’s why you have them around you.

After I wrote my article, one of the engineers, one of the Thiokol engineers’ daughter, this is Robert Ebeling who was the Thiokol engineer, his daughter reached out to me because my email is at the end of all my articles. Now I talked with her half an hour about what her dad went through that day, and she was actually with him during that launch day, and she said, “He’s held himself responsible, personally responsible for 30 years, for the crash and the disaster of the shuttle when, in fact, he tried to stop it but the managers at NASA decided to launch anyway.”

So, I said to her, “Leslie, would you mind if I called your dad and speak with him on the phone?” She says, “He would love to hear from you.” So, I got his number, he was in an assisted-living facility, really dying of cancer, so I got him, he was very, very sick. I called on the next day and I spoke with him for a good 20 minutes, and I said, “Mr. Ebeling, you and your fellow engineers at Thiokol are true American heroes because you tried to stop the catastrophe but you couldn’t. But don’t feel that that’s your burden. You did your best.” He died five days later.

And so, that was a very, very compelling moment for me when I spoke with Robert Ebeling. And the quote that I wanted, or the author of the quote, “If you want to be successful, you must respect one rule, never lie to yourself.” It was by Paulo Coelho, a Brazilian novelist, a very renowned individual. And that’s my favorite quote because had NASA not lied to themselves, they would’ve listened to their engineers and not launched the shuttle. So, that’s a lesson for all of us. Never lie to yourself.

Pete Mockaitis
And how about a favorite book?

Stan Silverman
Oh, “Good to Great” by Jim Collins, absolutely. It’s a book that a lot of people have written. I probably read it three times, I listened to a tape on it. And what Jim Collins says is that when you decide where to take your company, you need to pick the right people, put them on a bus, put them on the right seats, and they will decide where to take the bus. And so, you, unilaterally, aren’t going to be very successful, at least most of the time, if you decide where your company should go without your people got buy-in into it, and they have ownership in it.

And so, every time I’ve made strategic decisions and change in the strategic direction, I’ve had input from the people who work for me, who report to me. I trust them. I’ve hired them with good critical judgment and common sense, and we argue our points, we argue all the time. And I have a story to tell you about that in a moment.

And so, you have to staff your company with people reporting to you who aren’t afraid to talk to you, who aren’t afraid to say you’re wrong, and you need to listen to that. If you’re the CEO that can’t take being told you’re wrong, you’re not going to be very successful.

So, this is the story. So, when I was chief operating officer of the company, I would come up with an idea or a proposal and I would talk to the CEO about implementing it. And, more often than not, before I could finish talking about it, I would hear from him, “Well, it’s not going to work.” And I’d say, “Well, don’t tell me it’s not going to work. First, let me explain the whole thing, and then tell me it won’t work.”

And so, I started writing him memos which, of course, he would read without me in the room, and you’d have to read the whole memo, a page, a page and a half memo. He’d come in and say, “Boy, this is a great idea. Let’s get it done.” And so, that’s how we got stuff done. So, when he left the company and I became the CEO, I swore that we would change that cultural norm because he did that with everybody.

And the cultural; norm would be this. So, I would not often kind of give my opinion on how we should go somewhere and the direction, I would kind of tease it out of my folks. But, every once in a while, I would say, “You know, I think we should go direction A with a certain issue.” Well, if my CFO or the head of our chemicals group didn’t agree with me, I would expect him to say, “No, Stan, I don’t think that’s right. I think rather than go direction A, which is your direction, I think we should go direction B.”

Well, how I react to that comment will forevermore, in the future, govern the dynamic between that individual and myself. Rather than say, “I don’t want to hear it. Just go direction A,” which is bad, I would say, “Well, Bill, why do you think we should go direction B?” or, “Why, Mike, do you think we should go direction C?” And we would debate A versus B. we would bring in experts, we would bring people very knowledgeable, we debate for a day, for a week, for a month. And at the end of that discussion, one of three things would happen.

I would say, “Bill, thank you very much for suggesting B, but we beat A up against B, and B up against A, and I really think Ai is the way to go so that’s the way we’re going to go,” and we would go that direction. Or, I would say, “Bill, you know, thank you for suggesting B. After beating one up against the other, I think B is the better alternative,” and Bill would feel really good that I picked his alternative.

But more than not, and this is real live data, real live experience, more often than not, because we debated A versus B, we would find direction C better than A and B, and we would go direction C. Well, when we did that, we really made a mistake. And it’s one of the reasons why we drove earnings from $14 million to $43 million over a five-year period which included the year of 9/11 2001 plus the horrible recession of 2002. We never had a down quarter during that recession because we debated things as equals. As equals we debated things.

And that, I think, is just a huge, huge cultural norm within any company to really get great results, you debate, and then you pick the right one. Pick the right direction.

Pete Mockaitis
Yeah, totally. And if folks want to learn more or get in touch, where would you point them?

Stan Silverman
Well, they can read my book. My book is called “Be Different: The Key to Business and Career Success,” and it talks a lot about leadership, it talks a lot about tone at the top and culture, but the focus in the book is it teaches every business how to be better than their competition so that they become the preferred provider of product or service to the marketplace so that your customers, your clients, want to buy from them preferentially above any of the competition.

And it doesn’t matter whether or not you make widgets, whether or not you’re an accounting firm, whether you’re an attorney, you’re a doctor, you’re a surgeon, you’re a hospital, or whether you put roofs on houses, or you sell bicycles in a bike shop. You want to be the preferred provider so that anybody that needs a roof on their house, or medical treatment, or surgery, or wants to buy a bicycle, they want to buy from you versus the competition. And I teach how to do that.

The other part of the book is that all of us, as we all rise up through our careers, become better than our peers so that we get the next promotion or the next job on the outside the company. And so, that’s what the book is about. It’s about how to do that. And I have a lot of examples of great leaders, and leaders that aren’t so great, great companies and companies that aren’t so great, a lot of boards which are great boards and boards that aren’t so great.

And it’s really a handbook for success, future success, for your company or for yourself. And you can buy it at Barnes & Noble, or if you want to buy the Kindle version, you can buy the Kindle version on Amazon.com.

Pete Mockaitis
Lovely.

Stan Silverman
Or BarnesandNoble.com for the hardcopy.

Pete Mockaitis
And do you have a final challenge or call to action for folks looking to be awesome at their jobs?

Stan Silverman
Well, yeah, I think you have to decide. We all have legacies. We all have to think about what our legacies are going to be. What do we want to leave this world? What do we want to leave this world when we check out? And my legacy is I want to be able to say that I created a bunch of great leaders and helped them develop and be successful. I want to help companies develop and be successful.

I start a lot of talks off, I say, “What is the holy grail of any business, of any individual? What’s the one thing everybody, every business, or what’s the one thing everybody wants? What is the holy grail?” And three or four people will raise their hand, and one of those responses is, “To make money.” I said, “Well, that’s certainly something everybody wants to do, but that’s a measurement of how well you do with something else. Money is a measurement of how well you do. It’s not the objective. Because if it’s the objective, there are other ways to make a lot more money.”

And so, I tell them that, “If you’re running your company, you want to be the preferred provider of product and service to your marketplace and give a great customer experience. Give a great customer experience, that’s what you want to do. And as you rise through your career, you want to be better than your peers, and that should be your holy grail as you develop your career. And, of course, at my point in life, my holy grail is to help other people be successful. And that’s what I do every single day by coaching and counselling and writing about this.

Pete Mockaitis
All right. Stan, this has been a pleasure. Thanks so much and keep up the good work.

Stan Silverman
Well, thank you, Pete. It was really great being a guest on your show and I really appreciate having the opportunity to talk with you today.

507: How to Get Exceptional Mentors and Opportunities with Alex Banayan

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Alex Banayan shares unconventional approaches to creating new opportunities.

You’ll Learn:

  1. The ultimate cold email template to recruit mentors
  2. Creative “third door” approaches that nobody takes
  3. Communication secrets from Maya Angelou and Larry King

About Alex:

Alex Banayan  is the author of The Third Door, the result of an unprecedented seven-year journey interviewing the most innovative leaders of the past half-century, including Bill Gates, Lady Gaga, Larry King, Maya Angelou, Steve Wozniak, Jane Goodall, Quincy Jones, and more. He has presented the Third Door framework to business conferences and corporate leadership teams around the world, including Apple, Google, Nike, IBM, Snapchat, Salesforce, and Disney. When he was 18, Alex hacked The Price is Right, won a sailboat, and sold it to fund his adventure. He was then named to Forbes’ 30 Under 30 list.

Resources mentioned in the show:

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Alex Banayan Interview Transcript

Pete Mockaitis
Alex, thanks for joining us here on the How to be Awesome at Your Job Podcast.

Alex Banayan
Thank you very much for having me. I’m very excited.

Pete Mockaitis
I think the first thing we got to cover is how did you hack The Price is Right.

Alex Banayan
Going right to the meat. Wow, that was nine years ago. I was 18 years old at the time, a freshman in college. And the context is sort of important because I was sort of going through this what I want to do with my life crisis.


And not only did I not know what I wanted to do, I didn’t know how other people who I looked up to how they did it. How did Bill Gates sell his first piece of software out of his dorm room? Or how did Spielberg become the youngest director of Hollywood history.


So I … The short version of the story is I sort of set off to go find the book I was dreaming of reading. I went to the library and looked through dozens of biographies and business books. But eventually I was left empty-handed.


So, that’s when my naïve 18 year old thinking kicked in, and I thought well, if no one is reading the book I was dreaming of reading, why not do it myself? 


I thought it would be very simple. I thought I would just call up Bill Gates and interview him, and interview everybody else, and I would be done in a few months.

Pete Mockaitis
Alex, so good to hear from you. He picks it up and you’re just chatting away.

Alex Banayan
Yeah. I really thought that that’s how it would go. What I thought would be the hard part would be getting the money to fund the journey. I was buried in student loan debt. I was all out of Bar mitzvah cash so there had to be a way to make some quick money.

Pete Mockaitis
And actually game shows is your first instinct.

Alex Banayan
Well, do you know what’s funny? It wasn’t even my first instinct. I didn’t have any instincts. But I just kept ruminating on this problem until two nights before final exams I’m in the library and I’m doing what everyone is doing in the library right before finals, I’m on Facebook.

Pete Mockaitis
Sing.

Alex Banayan
And I’m on Facebook and I see someone offering free tickets to The Price is Right. It’s the longest running game show in US history. And my first thought was what if I go on this show and win some money to fund this book? Not my brightest moment. 


Plus, I had a problem, I’d never seen a full episode of the show before. I’ve of course seen bits and pieces when I was home sick from school in fourth grade.

Pete Mockaitis
That’s exactly what I was thinking, home sick is what I associate The Price is Right with.

Alex Banayan
Yeah. You know I didn’t have cable growing up. Everyone knows the price is right but I’ve never seen a full episode before. So, I told myself this was a dumb idea and to not think about it.


But, I sort of felt this, you know, almost like someone was tying a rope around my stomach and was pulling me in a direction. So, that night I decided to do the logical thing and pull an all-nighter to study.

Pete Mockaitis
All right.

Alex Banayan
But I didn’t study for finals, I instead had to hack The Price is Right. I went on the show the next day and did this ridiculous strategy and I ended up winning the whole showcase showdown winning a sail boat, selling that sail boat and that’s how I funded the book.

Pete Mockaitis
Well that’s excellent. So, what’s the strategy? I mean, I guess there is some strategies for winning once you’re selected. But how do you get selected?

Alex Banayan
Well that was my whole question because when I decided to pull that all-nighter, I decided I’m not going to ditch finals and just hope that luck goes my way. I was like I have to figure out this strategy.


So, I just started Googling how to get on The Price is Right, because I figured that must be the hard part. There’s 300 people on the audience.

Pete Mockaitis
Yeah, statistically, right.

Alex Banayan
Right, statistically there’s 300 in the audience, eight get called down, one out of those eight win. So, the big statistical challenge is being the 300 down to the eight.


So, what I found out is The Price is Right, and I found this out at three o’clock in the morning by the 23rd o of Google. I found this blog post from back in the ’90s that said The Price is Right is not what it seems. They make it look very random. Pete, come on down.

Pete Mockaitis
Me? Wow, all my college friends are excited for me.

Alex Banayan
Right, right. Like all … Like as if they pulled your name out of a hat. But what I learned is like everything in life and business, although it looks like luck, there is a system to it. And there’s a producer who interviews every single person in the audience before the show begins.


And in addition to the producer, there is an undercover producer planted in the audience who then confirms or denies the original producer’s selection. So, it doesn’t matter how much you love the show, how bubbly your personality is, if that producer doesn’t put you on his list, and if the undercover producer doesn’t then confirm or deny you, it doesn’t matter how much you want to be on the show, you’re not on.


So, that’s where I poured all of my focus. The long version of the story is like this, like 20 minute preposterous story and it was much less Einstein and much more Forest Camp when I say hack.


But it ended up being the event that really launched this seven year journey of the third door. 

Pete Mockaitis
So, then how do you identify who the producer is and get the meeting or the impression such that you get lucky?

Alex Banayan
Well, during my all-nighter research once I found out how it worked, I then poured all of my focus into studying who the producer is. And I figured out his name is Stan. I pretty much knew where he grew up, where he went to school, I essentially knew where he had for breakfast that morning. I learned everything I could about him.

Pete Mockaitis
Just like LinkedIn and googling around this Stan guy?

Alex Banayan
Yeah. He’s the head casting producer for The Price is Right. There’s stuff about him on the internet and when I finally, that next morning, drove on to the CDS lot in Los Angeles.


First of all, even before I got online, I realized I don’t know who the undercover producers are, so I just have to assume everyone is the undercover producer. So, I’m dancing with old ladies. I’m flirting with custodians. I’m break dancing and I don’t know how to break dance.


And eventually I get in line and about an hour in I see my guy. I see Stan standing 50 feet away from me. The way it works is Stan takes 20 people at once in line, sort of like herding cattle, puts them all in a row and walks down the line one by one ask them questions.


What’s your name, where are you from, what do you do? What’s your name, where are you from, what do you do? And before you know it, Stan is standing right in front of me and he’s like what’s your name, where are you from, what do you do?


I’m like, “Hey, I’m Alex. I’m 18 years old. I’m a pre-med.” And he goes, “Pre-med, you must spend all your time studying. How do you have time to watch The Price is Right?” And I’m like, “Oh, is that where I am?” No laughter. The joke just falls flat.


So, I notice his eyes darting as if he’s ready to move on, and I had read in a business book during my life crisis that said human contact speeds up a relationship. So, I had an idea. I had to touch Stan. Now, he’s like 20 feet away from me so I’m like, “Stan come over here, I want to make a handshake with you.” He’s like, “Oh, no, no, it’s okay.” I’m like, “Come on.”


And very reluctantly he comes over and I teach him how to pound it and blow it up and he laughs a bit, and he says, “All right, good luck,” and he starts walking away.


Now, what you need to know about Stan is he has a clipboard, but it’s never in his hands, it’s in his assistants hands who sits about 20 feet away from him, and that’s the list that gets passed on to the undercover producer.


As Stan starts walking away from me I notice he doesn’t turn around to his assistant, she doesn’t write anything on the clipboard, and just like that it’s over. And I don’t know if you’ve ever had one of those moments where you can literally see your dream walking right away from you, almost like it’s sand slipping through your fingers.


And the worst part is you didn’t even have a chance to really prove yourself. So, I don’t know what got into me, but I started yelling at the top of my lungs, “Stan, Stan.” The whole audience shoots their head around and Stan runs over thinking I’m having a seizure and he was like, “Are you okay? Are you okay? What’s going on?”


I have no idea what I’m going to say. And Stan’s looking at me, I’m looking at him, the audience is dead silent. This random 18 year old kid was shouting at the top of his lungs and again, what you have to know about Stan, he’s very typical Hollywood, turtle neck, red scarf, goatee.


And I just look at Stan with all the seriousness I can and I’m just like, “Your scarf.” And now I really don’t know what I’m going to say next. And I just look at him, I just try to be as serious as possible and I just look at him dead in the eyes and I’m like, “Stan, I’m an avid scarf collector. I have 362 pairs in my dorm room and I’m missing that one. Where did you get it?” And he starts cracking up because I think he finally realized what I was actually trying to do, and he just smiled and took his scarf and put it around my neck, and he was like, “Look, you need this more than I do.” He turned around, winked to his assistant and she put my name on the clipboard.

Pete Mockaitis
Hot dog. Well you know, Alex, we usually don’t spend this much time on the kind of fan fact background ice breaker. But I think that this is important because there’s really some lessons here.

Alex Banayan
Thank you.

Pete Mockaitis
In terms of one, you were so persistent that you went to the 23rd page of Google, and that’s the ancient, I don’t know if it’s ancient. Google is not that ancient.

Alex Banayan
The ancient Greeks talk about the 23rd o of Google where all wisdom is. 

Pete Mockaitis
Well I guess the marketing joke is where is the best place to hide a body, the second page of Google because no one ever looks there.

Alex Banayan
Right, right.

Pete Mockaitis
But so you exhibited exceptional persistence in going deep into getting that as well as some courage. You didn’t know what you were going to do, but you knew that your window of opportunity was slipping and so you just did something and then you adapted real time.


So, I think that there is some excellent lessons there. So, then you won The Price is Right, you got the sail boat, you sold the sail boat, you had some funding now for your project. And your dream book then was to interview hyper achievers and figure out what they got going on.


So, tell us how did you in fact manage to get these folks to speak with you because you soon learned that it wasn’t as easy as calling up Bill and he says oh, hey Alex. So, what did you do to get them to talk?

Alex Banayan
Yes. To my surprise Bill Gates does not do interviews with random 18 year olds. 

Pete Mockaitis
Lessons learned.

Alex Banayan
Yes, very important lessons learned. And that’s really when it took off. So, it took two years to track down Bill Gates, it took three years to track down Lady Gaga and when I had started, like I said, I thought it would be this very simple straight forward process.


But every single interview was completely different. So, on my list were people from all industries. So, for science, Jane Goodall, for poetry Maya Angelou. Computer science, Steve Wozniak, Larry King, Quincy Jones, Jessica Alba, Pitbull, Warren Buffet.


It really went across all industries and each interview was its own adventure. So, with Larry King I chased him through a grocery store. With Tim Ferriss I had to hide in a bathroom for 30 minutes. So, each one was … With Steven Spielberg I almost died in the south of France. It was … With Mark Zuckerberg I almost got the police called on me.


So, every interview was its own mini quest and what I did learn across the board though, what I learned not only in the process of getting the interviews but even more importantly in the interviews themselves is while every story was different, every adventure to get the interview was different and every person who I interviewed on that surface were more different than you can say.


Maya Angelou grew up in Stamps, Arkansas. Bill Gates grew up in Seattle. At their core, and I don’t know if you’re a big music fan, but it was almost like there was a common melody to every conversation I was having. 


And the analogy that came to me, because I was 21 at the time, is that life and business and success is just like a night club, there’s always three ways in. 


So, there’s the first store, the main entrance where the line curves around the block where 99% of people wait around hoping to get in, that’s the first store. People are just standing, holding their resumes out in the cold hoping the bouncer lets them in. That’s the first store.


Then there’s the second door, the VIP entrance where the billionaires and celebrities go through. And for some reason school and society have this way of making us feel like those are the only two ways in. You either wait your turn or you’re born into it.


But what I learned is that there’s always, always the third door, and it’s the entrance where you jump out of line, run down the alley, bang on the door 100 times, crack open the window, go through the kitchen. There’s always a way in, and it doesn’t matter if that’s how Bill Gates sold his first piece of software or how Lady Gaga got her first record deal, they all took the third door.

Pete Mockaitis
Okay, that is so meta there. So, you are going through exceptional, unique efforts to access these people and then they’re telling you stories about their own accessible unique ways that they access their successes and opportunities.

Alex Banayan
Not by design.

Pete Mockaitis
That’s pretty wild. So, I want to dig into a couple of these luminaries insights. But so can we hear some of the particular? So, I guess you had different adventures each time. So, I’m putting together some themes already for The Price is Right.


There is persistence. I don’t know if I want to call it shamelessness, but it seems like you’re not easily embarrassed or you are, you don’t let that stop you.

Alex Banayan
I think it’s … So, the latter I think is super important. Not only just reflecting on my own journey but I also think anyone with their own careers because if you, Pete, if you ask my sisters what it’s like growing up with me, they would tell you I was the most scared kid you would ever meet.

Pete Mockaitis
No kidding.

Alex Banayan
And I can still remember to this day standing outside The Price is Right, right before I was going to get interviewed just completely terrified and embarrassed and I remember literally closing my eyes and telling myself you can either just succumb to this fear and lose this entire opportunity or you can push through it.


What I realized when I started interviewing people for the third door, when I sat down with all these leaders, is that my big question for them was how did they become so fearless because I definitely was consumed by fear every step of the way.


And my biggest realization after doing every single interview was that not only were people like Bill Gates scared in the beginning, they were terrified the whole way through. And that didn’t make any sense to me.


And what I learned is that it wasn’t fearlessness they achieved, it was courage. And while the word sounds very similar, the difference is critical. And this is super important whether it’s in your personal life or in your career or in the workplace, fearlessness is jumping off of a cliff and not thinking about it. That’s idiotic.


Courage on the other hand is acknowledging your fear, analyzing the consequences and then deciding you care so much about it you’re still going to take one thoughtful step forward anyway.

Pete Mockaitis
All right. So, there you have it. So, you sort of take a look at the real, I guess, consequences and probabilities like okay, here are the options, I can do nothing and get nowhere, or I can do this and which might get me in jail or embarrassed or a sail boat. So, that’s worthwhile. I’m going to go ahead and do that because that’s more important to me.

Alex Banayan
Yeah, yeah, absolutely. 

Pete Mockaitis
Okay. Well so then … And I guess you say you have wild tales and adventure for each of these people that you interviewed. So, can you share any sort of general themes? It seems like one of them is you’re persistent over time. 


Another is that you sort of just figure out where they’re going to be and be there. Anything else with regard to your messaging or invitation of winning over assistant publicist gatekeepers?

Alex Banayan
Well, yes, there are a lot of themes that to my surprise the themes that helped me get these interviews I’ve also learned through my research are also the same themes of the most high performing sales teams and the most high performing business development teams.


And what I’ve … And you know there is macro themes and also micro tactics. Even starting on the micro which are very useful for anyone no matter what their job is there is a right and a wrong way to send cold emails.


And in the year 2019 we’re almost into 2020, cold emailing is one of the most effective ways if you can actually do it correctly. So, I learned this during my interview with Tim Ferriss. He gave me a cold email template which he hadn’t shared anywhere else that not only changed my entire life and helped me get interviews for the book and get mentors for my journey, but it also my favorite thing is since the third door has come out, thousands of readers have written in saying that it’s changed their lives.


They’ve gotten in contact with people like Sheryl Sandberg or Malcolm Gladwell, all through this cold email template.

Pete Mockaitis
Well, you’ve got my attention Alex.

Alex Banayan
Okay.

Pete Mockaitis
What does this consist of?

Alex Banayan
All right, so this is how it works. It’s super simple but again, you really have to follow it to a T. So, it starts like this, Dear so and so. I know you’re incredibly busy, and you get a lot of emails. So, this will only take 60 seconds to read. Boom, that’s the first paragraph.

Pete Mockaitis
All right.

Alex Banayan
Then you move on to the next paragraph. The second paragraph is where you put one to two sentences max of context of who you are and why that’s relevant to the person who’s reading this.


So, again, this is not where you put your bio, your life story, but you pick a couple sentences that’s relevant to that person. Boom, next paragraph.


Again, one to two sentences max of a hyper specific question that they can respond without thinking too hard about. So, what should I do with my life is a bad example of a question. But what is one book you recommend to an aspiring writer is a great question.


Then the final paragraph is the contour. You go I totally understand if you’re too busy to reply. Even a one or two line response will completely make my day. All the best, Alex.

Pete Mockaitis
Okay. So then they gave you a book, which is nice. But you were interested in a little more. So, what then?

Alex Banayan
Bingo. So, I got the follow up advice during my interview with Bill Gates. Bill shared a lot of incredible advice about sale secrets and negotiating secrets. But one of the things he really emphasized is if you get someone to like you and to be invested in you, you don’t really have to negotiate that hard.


One of the things he did very early on in his career, which was very surprising to me is he would do exactly that. He would … Let’s say he was in the beginning of Microsoft doing a deal with IBM and wanted to create a relationship with the executives there.


When he would meet them he would ask them for book recommendations and then he said the key is he said busy people don’t have a lot of time to think, so what they do is they create frameworks whether they’re conscious of it or not.


And let’s say someone reaches out to you and says do you recommend a book? And you give let’s say three book recommendations. If that person gets back to you in a few months you might think, oh, that was a pretty smart person, they took my advice, that’s nice.


If they obviously don’t get back to you, you probably don’t even think about them again. But if someone gets back to you in one week saying I read all three books and the second one you recommended has completely changed my life and in these ways, I just wanted to say thank you.


All of a sudden that person creates a mental framework that you are a very good investment of their time. They just spent 30 seconds giving you advice and it’s already made a giant transformation in your life. And they also think that’s an incredibly hard working person who I want to get to know better.


Slowly it starts with an email, then maybe you next time you’re in town, “Hey, I’m in town. I would love to see you for 15 minutes if you’re available and if not totally understand.”


Then maybe you’re going through a challenge in a few months. “Hi, I’m sure you’re incredibly busy. I’m going through this crisis. Do you have a little time to talk on the phone?” It slowly builds and grows.


A mentorship isn’t something that you just sign on the dotted line. It’s a relationship that slowly grows with time and investment.

Pete Mockaitis
That’s good. So, then with these folks is that, well I guess 15 minutes is all you need for your interview in your book and what you’re trying to accomplish there or have you stayed in touch with some of these folks over longer periods?

Alex Banayan
Yeah, absolutely. You know it spans the spectrum. So, with some people they … With Quincy Jones it was three hours, a three-hour long interview. With some people it was a little shorter. For some people like Bill Gates the only time I’ve ever spent time with him was during that interview in his office.


With some people who I interviewed they’re some of my best friends now. There’s this great quote that I really love that always come to mind. It says … I can’t even remember who said it. It said something along the lines of respect the people who make time for you out of their busy schedules when you need them. But love the people who never check their schedule when you need them most.


I think what’s beautiful about this journey for the third door is it started as my journey to get advice to figure out how did the most high achieving people launch their careers. But what ended up happening is it also became this very personal journey where I was finding myself and growing up along the way and some of the people who I interviewed sort of transcended not only as an interview subject to a mentor, but to being like family members.

Pete Mockaitis
Yeah, that’s beautiful. And so there was a lot there. Let’s just get a couple tidbits just to get a taste of the wisdom of some of these amazing folks. So, a couple that you mentioned to me that I’d love to get maybe just one minute. All right, Maya Angelou, how do you write good?

Alex Banayan
Oh my good. A part of me literally wants to open up the book and read directly, but I’ll paraphrase. But she, I would say also just to give her credit which she doesn’t need extra credit because everyone knows already how incredible she is. But she was the only interview subject where her words, I literally could just sit back and she wrote the chapter herself. 


Just you asked her a question and she literally gives the most gorgeous and beautifully written response out of her mouth. It was definitely a very, very big honor to speak to her.


When it comes to writing she said the biggest thing she recommends a new writer to do no matter your age, is to take the writing that you just wrote, find a quiet room, close the door, and read your writing out loud.


She said it sounds obvious and simple but almost no one does it. People don’t like to hear the sound of their voice, they don’t like to read things out loud. But she said the best form of editing is reading it out loud because only then can you hear the melody of the words. And writing, good writing, is much more than logically putting words in the right order. It’s about creating a melody that is easy for the reader to take in.


She shared a quote with me that I’ll never forget. She said, and I think the quote is by Nathaniel Hawthorne, the quote goes, easy reading is damn hard writing.

Pete Mockaitis
Agreed.

Alex Banayan
Right? Easy reading is damn hard writing. And Maya Angelou insisted that the inverse is true too, easy writing is damn hard reading.

Pete Mockaitis
Yeah, that’s perfect.

Alex Banayan
Yeah.

Pete Mockaitis
Thank you. How about Larry King and interviewing?

Alex Banayan
Oh my God. Larry I’ll give a tidbit but he taught me so much. He looked at me the first time we met or the second time we met and he said, he was like, “The problem with all young interviewers when they’re just starting out …” And again, this is interviewing whether it’s for a TV show or radio show or even interviewing in a hiring process.


He said, “They look at the interviewers they admire and they try to copy that.” They look at maybe Oprah who uses all this emotion or Barbara Walters who’s very strategic or even Larry himself, which is very straight forward and they try to copy that style. Larry said that is the biggest mistake you can make because you’re focusing on what our style is not why we have that style.


The truth is those are the styles that makes them the most comfortable in their chairs. When you’re comfortable in your chair, the person you’re interviewing becomes comfortable in their chair, and that’s what makes for the best interview.

Pete Mockaitis
That’s good. Well Alex let’s go meta here. How do I make you more comfortable in your chair? I’m in pajama bottoms right now, if that helps, but you can’t see them.

Alex Banayan
The fact that you are just asking things that you are genuinely curious about and it sounds like you’re having fun is making me have fun. So, I’m very grateful.

Pete Mockaitis
Well thank you. Well that’s true. I really do want to know these things and I’m curious, so thank you. So, very cool. Then this third door mindset here, which is there’s more than just the two options associated with the masses and the VIPs. There is a third door. 


So, what are some general questions or means by which you began to discover what those third doors can look like in any given situation?

Alex Banayan
You know what’s interesting about the third door is it’s not a recipe for success, it’s a framework for success. The difference is this is really a lens to view your challenges, a lens to view the obstacles that no matter what’s in front of you, no matter what challenges are in front of you, at the end of the day there’s always a way.


And again, it doesn’t matter if we’re looking at how Warren Buffet got funding for his first investments or how Steven Spielberg became the youngest director of Hollywood history, what the third door framework tells you is that you don’t have to sit back and wait for a boss or a parent or even a mentor to give you permission to go after your goals.

Pete Mockaitis
All right.

Alex Banayan
You have the power to make it happen yourself. And what I’ve noticed with readers of the book is it gives you a sense of possibility. What I’ve learned is you can give someone all the best tools and tactics in the world, and their life can still feel stuck. But if you change what someone believes is possible, they’ll never be the same.

Pete Mockaitis
Yeah. That really resonates in terms of what you believe is possible. You know what, I even see this in small ways. I’m thinking about boy it goes big, it goes small. It’s like what could be possible in terms of could it be possible to earn a quarter million dollars a year by working less than 20 hours a week? Yes. In fact, I know people who do that and I find that inspiring and I’m kind of building my business to accommodate that so I have more time for just docking out and reading long whole books and studies and being with my kids and exercising and what not.


But along the way I’m having so much fun that I just keep working. So, that’s cool too. But I think even in the micro sense, this has happened to me a couple of times with I’m thinking about home renovation. I know it’s so mundane, since we’re talking about huge dreams and life visions.


But I think that’s let’s say I get a quote from one vendor, and I go man, to rebuild those kind of loose bricks around the perapet walls they’re called, that extend above the roof and to get a new roof that’s going to cost $40,000 says one person. And I go, dang, I sure don’t want to spend $40,000.


But if I, even if I get just a little bit of benchmark research data from Homeadvisor.com or from another quote or for some people that I’m talking to, then I begin to learn what is in fact possible and then I say no, I don’t like that answer that I got, so therefore, I will persist until I get another answer I like.


And spoiler alert, I just hired someone who’s going to take care of our roof matters for less than half that price. So, yay. And if I had no idea of what was possible, I might be like well shocks, I guess that’s what it costs. Man, that’s expensive.


So, I think that your sense of possibility can be expanded with even a quick Google search like in your case.

Alex Banayan
Right, absolutely.

Pete Mockaitis
Not a quick Google search 23 pages down, but you say oh, it is in fact possible to take an action that gets me selected for Price is Right.

Alex Banayan
Yes, yes, 100%. 100% yes.

Pete Mockaitis
That’s cool. So, what are some additional means by which you recommend that you become aware of possibilities? So, one is huge, is finding mentors.

Alex Banayan
What a great question, that’s a great question. I love that.

Pete Mockaitis
Yeah, lay it on me Alex.

Alex Banayan
Because what I’ve learned is you should do what you can with what you have. You should do what you can with what you have. Now, for most people, look, if you’re listening to this right now, at the very least you have internet access. That’s how you’re listening to this podcast, right?


So, you already have access to YouTube, every podcast out there, and books whether you buy them yourself or you sign up for a library account and rent it on your phone. And when I was first starting out, and I think it’s really important to remember that I didn’t know anyone, I was an 18 year old college student. And my mentors at the time were books. I read Tony Hsieh’s Delivering Happiness, CEO of Zappos and that became my mentor.


I read Pour your Heart Into It by Howard Schultz, the CEO of Starbucks and that became a mentor to me. And in the beginning it was just books. And slowly with time I began to meet the authors of the books by going to author events and then I started cold emailing authors and started meeting them in person.


And of course the dream is for the people you look up to, to be able to help you in real time and real life but you have to start somewhere. And starting with YouTube videos if you’re interested in social media marketing. Type in Gary Vee on YouTube and just go down that rabbit hole if you’re interested in entrepreneurship. There is so much out there.


What happens when you start absorbing yourself very … And I love really going down that rabbit hole when you really absorb people stories is it shows you what’s possible, going back to your question how to do that.


And I think you have to be very proactive in the process because if you’re sitting back at your job or in your classroom, no matter where you are in life, and you’re just taking in the information that’s been given to you, your sense of possibility is very slim and very narrow.


But if you actively push yourself to read things that you normally wouldn’t read, talk to people you normally wouldn’t talk to, your life will never be the same.

Pete Mockaitis
I think we have to address an issue that can just short circuit the magic of that possibility becoming present to you, which is a tendency to, I don’t know what the word is.

Alex Banayan
I’m curious what you’re saying because I have an idea too.

Pete Mockaitis
Is it other, I don’t want to say otherize, but to form a wall or distinction it’s like okay sure, Howard Schultz could do that but he is Howard Schultz, you know? Larry King could do that but he is Larry King and I am not Larry King. 


So, that notion that that person is completely different from me and therefore that possibility is not real, I think that can just kill the magic. So, how do you inoculate yourself from that influence?

Alex Banayan
So, a book I would recommend is called The Magic of Thinking Big. It’s an older book, I think it’s maybe 50, 60 years old. The Magic of Thinking Big, and it’s very good at addressing that issue. 


And something I learned from one of the people who I interviewed is that you want to create a mental bank almost an internal bias of possibility. When I meet people who have that problem in a very severe way, what I recommend them do is do a 30 day challenge of every day for 30 minutes for 30 days in a row, they need to journal for 30 minutes every day on a moment in their life whether at home, at school, at work, where they had a giant obstacle that they overcame.


If you spend 30 minutes, you know even if nothing comes to you for five minutes, something will come to you at some point, and they could be something small. Like literally I was really thirsty and didn’t have any money for a vending machine and I ended up finding, searching the couch cushion, whatever.


It could be silly stuff, it could be big stuff like a health challenge or a relationship challenge. What you’re doing is reprogramming your mind, because I’ll tell you, no one is born thinking they can’t do it. Whether you are aware of it or not, there have been implicit messages and events that have created that outlook within you.


And you have to become proactive in reprogramming your mind. And even going to therapy is a good solution. I’ve been going to therapy once a week for five years now, and it’s really helped me reprogram old stories. 


At the end of the day our life is only as valuable and only as productive as the value and the productivity of the stories we tell ourselves. And it’s up to us to choose which stories we want to live with.

Pete Mockaitis
Yeah, I dig that. So, the journaling about times you’ve overcome obstacles, then reprograms your brain such that when obstacles no longer seem permanent or immovable, it’s like oh, that’s just like those 30 other things that I overcame. All right, well, let’s figure it out.

Alex Banayan
Exactly, exactly. 

Pete Mockaitis
That’s cool. Well also, I guess I’m thinking now about … Let’s use some examples of obstacles and overcoming just because if … I think that’s probably the hardest part of the 30 day challenge is your very first day or two it’s like oh, I don’t really know, nothing will come to mind.


Because sometimes I think that conjures up an image of really dramatic stories of I’m thinking of motivational speakers here. I was broke and on drugs and on the streets and all.

Alex Banayan
Right, it doesn’t have to be that dramatic.

Pete Mockaitis
Addicted to everything. But then I pulled myself up and blah, blah, blah. So, it’s like okay. But give some more examples of hey, challenge overcoming. There might be even mundane just to get a start at it.

Alex Banayan
I think what’s really easy is when I tell people when they do have problems finding examples, I always tell them think back to high school because of high school every day we had a different silly challenge that we found and created a solution for whether you didn’t study for a test and you had to cram by creating a last minute study group where you all exchanged resources.


Or for me I remember not, this is a really preposterous situation, but there was a teacher that was the meanest teacher in the school and I got assigned to that teacher on the first day of school. And I realized that I didn’t want my whole year ruined because that teacher is very notorious.


And I ended up just sitting outside of the guidance counselor’s office for six hours doing a sit in until the guidance counselor would meet with me. Literally preposterous silly things even because the point of this exercise is to show you that in all aspects of your life, whether it’s with a romantic partner or with a parent, when you had obstacles you had the skillsets within you to figure it out. 


And what you’re really doing is you’re helping yourself trust yourself more. That’s the difference between confidence and self-confidence. Confidence is external and self-confidence is internal.


What you’re doing is you’re building your internal self-confidence, your trust in yourself of what you’re capable of.

Pete Mockaitis
Yeah. And it’s just so fun. When you were talking about high school, you were bringing back memories to … I thought it would be fun to participate in the musical we did for Grease. 


But I, at the time and still to this day, I’m not really that great in singing. So, then it became clear … I can read the lines. I talk pretty well. And then it was like then we had to singing. So, I remember this guy Jordan who just has an amazing voice, he was like bring him home. Everybody was like wow. It was like all this.


But what I did know is that I had a lot of enthusiasm and there was one tune I thought was deeply embedded within me, I kind of sang to myself at times. So, it was from a commercial and so I just went for it and said it doesn’t matter what comes, fresh goes better in life. With Mentos Fresh and full of life nothing gets to you. Staying fresh, staying cool. So, I’m singing the Mentos commercial.

Alex Banayan
Right, right. 

Pete Mockaitis
And because there was emotion and it’s not that complex of a tune in terms of number of notes and range, I made a decent impression and I got the part, which was modest. I was in Danny Zuko’s crew.

Alex Banayan
Very important, very important.

Pete Mockaitis
And Sunny I believe, yeah, Sunny was his name.

Alex Banayan
Cool leather jackets.

Pete Mockaitis
Yeah, yeah. I had one line like tell me more, tell me more, could you get me a friend. Which is tricky because it’s a high note, and I didn’t do super well. But I got the part and had some fun, and it really set things up in some cool ways in terms of making some great friends and being engaged with activities and I stuck with it.


So, while I haven’t thought about that in a long, long time, but you brought it up and it was fun to remember. And I do have a greater sense of possibility not so much from a source of oh, I’m getting pumped up because let’s do a motivational program or I have the tiger or whatever.

Alex Banayan
Right.

Pete Mockaitis
But rather it was like oh, that was a real thing that happened. And there was a good result and there can be more of that in my life. It’s powerful.

Alex Banayan
Yeah, absolutely.

Pete Mockaitis
Well Alex, good stuff, tell me anything else you want to make sure to mention before we shift gears and hear about a couple of your favorite things?

Alex Banayan
I think you’ve really nailed it because when I think of everything we’ve talked about so far has this common theme of really looking within yourself and the answers are in there. And the whole point of the third door is not only to equip people with tools not only to change what they believe is possible but really at the end of the day it’s to liberate yourself because whether it’s at work, whether it’s at home, our real goal is to try to be most us version of us, right? The most you version of you. And the third door is really a mindset to liberate yourself.

Pete Mockaitis
Thank you. Now, could you share a favorite quote, something you find inspiring?

Alex Banayan
I was reading a book and there was a Warren Buffet quote that I just really loved yesterday that I said we don’t have to be smarter than the competition, we just have to be more disciplined.

Pete Mockaitis
Thank you.

Alex Banayan
I really like that.

Pete Mockaitis
And a favorite book?

Alex Banayan
Oh my God, so many. I would say something that comes to mind right now is The Alchemist by Paulo Coelho. 

Pete Mockaitis
Thank you. And a favorite tool, something you use to be awesome at your job.

Alex Banayan
This is a great tool and it’s not a tool. It’s the airplane mode function on a phone. If I want to be productive, there is only one way to do it, by putting my phone on airplane mode. Silence doesn’t work. 


When I’m writing, I will literally not only turn of my phone, I’ll hide it in a drawer on the other side of the room to use my laziness against me.


But if I just want to do something very thoughtfully for even 30 minutes, I have to go on to airplane mode.

Pete Mockaitis
And a favorite habit?

Alex Banayan
Meditating twice a day.

Pete Mockaitis
Do you use an app or just breath or what’s your approach?

Alex Banayan
I went to … I use a thing called transcendental meditation, which there’s a lot of teachers all over the world who’ll do these three days workshops. But I really believe any kind of meditation is good as long as it feels good for you.

Pete Mockaitis
Is there a key nugget you share that really seems to connect and resonate with folks that quote it back to you often?

Alex Banayan
Yeah. There’s one quote from the book that I see quoted often, which is when you change what someone believes is possible, you change what becomes possible.

Pete Mockaitis
If folks want to learn more or get in touch, where would you point them?

Alex Banayan
The book is everywhere. Books are available whether it’s Amazon or Barnes & Noble or Audible. And if you end up getting it, let me know so I can say thank you. Instagram and Twitter are all the same, it’s just @AlexBanayan.

Pete Mockaitis
And do you have a final challenge for folks looking to be awesome at their jobs?

Alex Banayan
Great question to end with, yes let me think about that. Let me make that thoughtful. Ask yourself the second, actually no, not the second this is done. Ask yourself some time today where you actually have some time to yourself, what are you the most afraid of at this point in your life right now? Because I think in that answer lies some of your destiny. 

Pete Mockaitis
All right. Alex this has been a treat. Keep on living big possibilities and good luck to you.

Alex Banayan
I am so grateful. This was a ton of fun, thank you.

 

Next: Ron Price talks about becoming an influential leader.

439: How to Find Opportunities Hiding in Crappy Situations with David Greene

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David Greene says: "Ask yourself how you can run towards a problem instead of away from it."

David Greene shares how you can identify valuable opportunities in any situation you find yourself in–even the crappy ones.

You’ll Learn:

  1. How difficulties often indicate valuable opportunities
  2. Why analyzing your anxiety often yields valuable insight
  3. David’s salad story which reveals how to 8X your efficiency on certain tasks

About David

David Greene is the co-host of the BiggerPockets Podcast, author of “Long Distance Real Estate Investing: How To Buy, Rehab, and Manage Out Of State Rental Property,” online blog contributor, Keller Williams Rookie of the Year, and a top producing real estate agent in Northern CA.

As a former police officer who started investing in real estate in 2009, David has built a portfolio of over 30 single family homes, as well as shares in large apartment complexes, mortgage notes, and note funds.

David teaches free monthly seminars on real estate investing and has been featured on numerous real estate related podcasts. He runs GreeneIncome.com, a blog where he teaches others to build wealth through real estate, as well as “The David Greene Team”—and is one of the top Keller Williams agents in the East Bay.

Items Mentioned in this Show:

David Greene Interview Transcript

Pete Mockaitis
David, thanks so much for joining us here on the How to Be Awesome at Your Job Podcast.

David Greene
My pleasure. I’m excited.

Pete Mockaitis
Well, I’m excited to chat with you too ever since I’ve listened to the BiggerPockets podcast many times. So, I’ve heard your voice, but then when I got to hear your story on the BiggerPockets Money podcast, which I’m excited to appear on, in some weeks from now, I really got a kick out of how time after time after time, you saw some opportunities that others didn’t. So, I’d love it if we could start your tale with back in the day when you were a waiter.

David Greene
That’s actually really fun to talk about that, BiggerPockets Money Podcast. I think it was maybe Episode 12, was the first time that I had ever talked about my story on a podcast, for sure, but maybe even in like the last 10 years. So, I had a lot of fun going back to remembering how I used to think and the doubts and the fears and the worries I had. And now seeing how it worked out. It’s kind of incredible. So, this should be fun.

Pete Mockaitis
Certainly, well, let’s take it away.

David Greene
Okay, where should we start?

Pete Mockaitis
Well so, there you are, you’re a waiter and you are starting to wonder how can I make some more money here?

David Greene
Yeah, so I was always a very driven guy, like I wanted to make as much money as I could, I knew it. I wouldn’t say it was necessarily greed that was driving that but like ambition might be a better word. I knew that I didn’t want my time to not count for anything.

So, I was very, very, like, motivated by if I was going to show up somewhere. And if I was going to put six hours of time, eight hours of time into somewhere, I might as well work hard when I’m there. It didn’t benefit me to show up and not work.

And that was one thing that I noticed that was different in me than other people, we both had to be stuck there for eight hours not doing the stuff we’d rather do, right. You can’t go snowboarding— for me playing basketball was what I loved to do, I can’t play basketball when I’m here at this restaurant.

So, I might as well work hard. And I noticed that a lot of other people were content to be there but not work. And I always looked at it like well, if you’re stuck here, you might as well get something out of it.

So as a waiter, the more tables you had and the better job you did at those tables would determine your income because it was like you know, 90% tips. That’s how you were getting paid. So, I noticed if I could wait more tables, I could make more money. And I knew at the end of my shift when I clocked out and I was going home, all that matter was how much money I had in my pocket. It didn’t matter if I sat around and did nothing or I worked super hard, that was over. And the money that I had was only thing I was taking with me.

So, I became determined to get as good as I could at waiting tables as well as I could and learning the skills that I would need to be able to do that to be able to make more money.

Pete Mockaitis
That’s cool. So, it starts with a different perspective like, “Okay more tables equals more money—”.

David Greene
Right.

Pete Mockaitis
“I want to make the most of my time, so, giddy up, and let’s make that happen.” And so how did you do that?

David Greene
So, the first thing I did was I looked at who in the restaurant is already the best, who’s doing this at the highest level. So, there was two waitresses that were kind of like to go-tos when they got really busy. All the tables would go to them. When there was a big party coming in, they would get the big parties, right?

And, and I started so like ingratiate myself to those girls. It was “hey, what do you need? Can I fill up your tables’ waters? Can I get them some coffee? Can I help brush your tables? Can I bring your drinks from the bar to your tables?” I always be them a priority. When my tables were all done and there was nothing to do and everyone else was standing in the kitchen kind of BS-ing, I would then go help those girls.

And I noticed that they would start to say things to the owner like, “an, this David guy is incredible. We love him.” So, I kind of got a little, “Ooh, this is good. The owner likes me now she’s treating me a little better.” So, I would start doing what we call side work at the end of the night. This is like the cleaning up of the restaurant that they make the waitstaff do.

I would get mine done and then I would go to theirs two, right, because if I have to be here for this time, I might as well clean my stuff up fast and then go help them, more compliments my way. Now I noticed that the owner was kind of pulling me aside and giving me extra training or maybe testing that other waiters weren’t getting.

She’d pull me aside and say, “Hey, these are the eight different kinds of glasses that the bartender uses. We use this type for this cocktail, we use this type for this cocktail.” I being 19 years old or whatever I was, didn’t understand what this had to do with my job. But looking back now I realize she was looking to see, is he a flash in the pan or is this a kid who really wants to learn the industry?

And when I would memorize it, she was very happy and I would get more responsibility, right? And this was my first kind of like, foray into, “you can earn your way into a better position, you don’t have to just wait for someone to notice you and say let me give you a raise, let me give you a promotion.”

So, I went to the owner at a certain point and said, “Hey, I want to wait more tables, so, what do I need to do to be like Haley and Kelly?” Those were the top two waitresses. And she said, “I’m so glad you asked. This is what I look forward to see if you’re ready for the next level.” And she gave me a list of stuff. Now I had a literal blueprint for what I needed to do if I wanted to be successful at this job.

Pete Mockaitis
So much good stuff there, that’s applicable just about anywhere in terms of, alright, attitude and making the most of the time, zeroing in on role models, on who’s the best here. Helping out, proactive favors, ingratiating to the best, asking the questions, “How do I be like that person?”

All that’s great stuff and I guess what’s interesting is, most people did not do that and you shared it in your story that’s a part of that equation could be that the owner was kind of demanding, had some high standards that rub some people the wrong way?

David Greene
Yeah, I guess I should mention that, she was a terror. I mean, people were terrified of this woman, right? When she would show up, everybody went to like, scurry like cockroaches to find somewhere to hide because they didn’t want to be seen by her right?

You hit it on the head, she had extremely high standards. Now, I was used to that in my life before this, I had been playing sports and coaches had really high standards. My parents had really high standards. Now that you mentioned it, so yeah, I’m learning something about that myself. That might be one of the reasons why I do better in life is because I have higher standards. I didn’t really think about that till right now.

Pete Mockaitis
Happy to help.

David Greene
Thank you for that. So rather than me running away from the person with the high standards, I ran towards the person and said, “How can I help you hit these standards?” And because everybody else was running away, I made me stand out.

So, I realized the reason she was always cranky and grumpy was because the standards were not being met. And I would have been part of the problem by running away. That’s why the standards weren’t being met. And by her increasing her expectations of me, it was actually a compliment, right? When everyone else was complaining, why did she care if the cracker wrapper gets left on my table or who cares if their water was empty for a minute.

I was looking at it differently like, if she’s paying this much attention to what goes on at my table, she’s noticing me, this is my opportunity to show her that she can trust me, because I was so motivated by getting more.

And what I found, Pete, is that like, the difference between taking it easy and getting three or four tables and working hard and getting eight or nine tables was literally double your income, right? So, like, if your average waiter was making 40 grand a year, and you worked harder and got eight tables, you could make $80,000 a year as like 18 or 19-year-old kid in 2000/2001, whenever this was happening. It’s a big amount of money for somebody in that position, right?

And that was what motivated me to get good at the job. So, once I got to where she was trusting me with more responsibilities, which meant getting more tables, now I had to learn how to keep the same level of service even though my workload had increased. And that was my first like, foray into being more efficient.

Pete Mockaitis
Oh yeah. There’s so much good stuff here. And at first I want to key in on that notion of you ran toward the person with the highest standard rather than running away and you being noticed is a good thing even if it doesn’t feel like it like “oh my gosh, get off my back.” That reminds me of a previous guest Eddie Davila, who said that, “Pressure is really a gift, you give pressure to someone you trust and that you’re expecting great things of as opposed to giving pressure to someone who you think is everything in them out too much or be able to accomplish much for you.”

David Greene
Yeah, that’s absolutely true and you see it with everything, you see it with professional athletes, you see it with the best performers. You see, I think even to a degree with like teachers and their students, that principle runs through everything.

Pete Mockaitis
Well, so then how in practice did you execute, doing more tables?

David Greene
When it came down to at this specific restaurant, it was not run very efficiently, the waiters had to do an insane amount of the actual work. And the busboys and the helpers, if there was any, didn’t do very much at all.

So, what it meant was like every dinner would come with a salad or soup and the waiter had to make the salad. And the salad had to be tossed in the dressing. And there was like nine different things you had to put in it, right. And then we had like 12 different kinds of salads. And then there was no food runner, so you had to run your own food, there were no computers, you had to handwrite all this on a ticket, right.

So, I started to notice just from listening to my own emotions, what would cause me stress or anxiety. So when I would get like a table of eight and I would take all their orders on a piece of paper, I would then go in the kitchen and I’d have to pull up a menu and look at the menu and write down the price of every item that I was going to give to the kitchen staff.

So, if they wanted a T-bone steak, I would have to write a T-bone, medium rare. I’d have to put whatever starch they wanted, a baked potato, rice or pasta, right. And then I’d have to put the price of whatever that thing cost on the ticket because that was also going to be the receipt that we gave to the customer at the end.

And all these waiters would be all like huddled around the area where the menu was trying to fight and see over the top of each other to write down all the prices and I’m like, I would get anxiety when I knew I had to go do that. It was going to slow me down and what if my food comes up, I have to run out to the tables while I’m doing this.

What if my drinks are up at the bar? So, I would memorize that menu. I took one home and I just memorized the price of everything. I made flashcards, then when I would go running, I would go in my head and I would say porterhouse $28, T-bone $26, filet mignon, oh, I can’t remember.

Then I would make a note, I need to go look up the price of filet mignon, right. And I would just run them over in my head over and over and over until I had the entire menu memorized. And that would save me the time of having to go look at that menu and write the price in as well as fighting with the other servers to be able to see it.

Now, some people said, “David, that saves you 30 seconds, big deal.” But 30 seconds in the middle of a crunch is huge.

Pete Mockaitis
Oh yeah and again and again and again repeatedly.

David Greene
Over and over and over, that’s exactly right. So, that was the first thing I did. Then the next thing I noticed was I would feel anxiety whenever I had to go like make all those salads, right. And there was a ton of steps that would have to go into each one.

So, one night when we closed, I went to the little salad station and I broke down every step I had to take to make a salad with my hands. So, we would—this may be a lot of detail but we had the salad kept above you at like eye level in this really big bin and we would take a scoop of it out and put it in a bowl, then we would scoop the dressing from the little container into the bowl, then we would grab a fork and we would toss it all around, then we would take us a chilled plate out of a fridge, pour the lettuce on to the plate.

So, we’re like four steps here, then I would take a handful of croutons and a handful of like cut up cabbage and stuff like that, put it on the top. So, we’re at six steps, then there was a tomato that you added that was step seven, then you would have to put that salad plate on a tray behind you and make the next one.

So, I went there and I would practice this like dance of my right hand goes to grab the lettuce, my left hand goes to grab the dressing. I’ve already put the bowl where I’m going to put them in place. How quickly can I get those two things done?

The minute that the left hand is pouring the dressing into the bowl, my right hand has nothing to do, it should already be going to grab the croutons, right. And I would practice how to grab the right amount of croutons fast, how to grab the right handful size of lettuce so that it almost became like second nature to me. And I got to where I could rip through these things in maybe 10 to 15% of the time that the other waitresses were taking because they just kind of went at a comfortable pace.

Pete Mockaitis
10 to 15%, in other words eight times as fast.

David Greene
Yes, I was like, I was a blur, right. And I made it a game like how quickly can I do this. And it almost became fun when you get into the zone and you’re concentrating that hard. So, I could make it eight times as fast. And again, maybe that saved me two and a half minutes. But that two and a half minutes was really big when you were in the middle of a crunch, two and a half minutes when a table wants to order food and you’re not there can be a big impact on your tip, right.

And so, what I would do is I would go through the process of all my responsibilities of a waiter. And I would notice at what point do I get all the anxiety? At what point are we like, “Oh, I hate this part?”—because we all have those thoughts. And then how can I be better or more efficient? How can I solve that problem? Because that was the same problem my competition was having, and they probably weren’t being as purposeful at solving it.

Pete Mockaitis
Oh, certainly. Well, that’s really cool how the anxiety serves as an emotional indicator for what’s happening in sort of a business process flow logistics context as a bottleneck. It’s just like, this thing is slowing it down and you’re feeling the anxiety when you’re in the midst of the slow down.

And so, by really focusing with great, I guess precision on, alright, memorize the price, alright, salad dance, let’s just flash this in half and half again and again. That’s really cool and has applications to all kinds of jobs, like this process seems to be taking a stupid amount of time, let me really go after how I can accelerate it.

David Greene
That’s exactly right and I’ve used that same strategy or technique or whatever you want to call it in every job I’ve had. Like right now I’m a real estate agent. And there are steps to every single transaction that happen and some of those I do really well and some of those I don’t do well or I feel that same level of “oh, I hate this part.”

This is always where I mess it up, right. I’m gonna have to call the client and tell them this and they’re going to give me attitude and my natural response is to be cold and apathetic because I don’t like when I get attitude, right. I’m not going to do well here.

Most of us ignore that feeling of anxiety and we just say like, we either ignore the tasks that would require it or we have half-butt it to get through there because we don’t like it. What I did as a real estate agent was I said, “Okay, this is not my favorite part. How do I get somebody else and train them to do that for me, that does love doing it?”, right.

Now the anxiety is gone and I’m focusing on the parts I like and I’m doing better. I ended up working at a different restaurant after this when I had reconstructive ankle surgery from a basketball injury. And when I came back, I said, what could I do to make more money, I can only take so many tables at a certain point, there’s diminishing returns, you can’t take more.

And I realized I better go work in a more expensive restaurant. So, I found a more expensive restaurant that was much further away. But it was like twice or three times as expensive as the steakhouse I had been working at. And that was my first foray into seeing like, different businesses are structured and use different models. And you have to take these skills I’m talking about and apply them in new ways in different places that you go.

Pete Mockaitis
Absolutely, and that’s good stuff. Well, maybe when we get a couple more examples of you and noticing opportunities and how you’re making it happen. You pulled off a pretty neat stunt in terms of getting way, way, way cheaper rent in California. How did this come about?

David Greene
As far as where I was living?

Pete Mockaitis
That’s right.

David Greene
Yeah, so what I did was I was— man, how did this start? I moved to the Bay Area in California to become a deputy sheriff and go to the police academy. And I was paying a fee to live in a house with a bunch of strangers from Craigslist. So, it was only like $650 a month, which is pretty good rent but I hated it. I mean I absolutely hated living with these mutants that I was having to spend my time with—

Pete Mockaitis
One of them is listening, these mutants.

David Greene
Yeah, I doubt they even know what a podcast is, Pete. These were people, who were very negative, very problematic, complained about everything. It was really rough. And I knew if I wanted to go get like an apartment, rent was around $2000/$2500 a month, and I could have paid it but I just didn’t want to.

So, I heard all the guys at work talking about one deputy who said that he had just bought a house. And they said, “Yeah, he got this big old huge house, it’s just him, his wife doesn’t even live with them right now, she’s overseas working. Why did he buy it?” And they were all kind of laughing at him. And they brought me into the conversation to mock him also because they knew I was like a real estate guy.

And I didn’t think I should mock him, I was like, “What’s he gonna do with all that space? Why did he buy it?” Right. So, I went to talk to Vaughn and I asked Vaughn like, why he did it. He’s like, “You know what, I just always wanted a big house man. I grew up in a small poor area.” He grew up in East LA, was very rough.

He said, “I’ve always wanted a big house. I knew it was bigger than I needed but I didn’t care. I feel great having it.” And I was like, “Well, do you want to make another $300 a month?” He said, “Yeah.” I said, “Let me move in.” He goes, “Okay”.

Pete Mockaitis
Here we go.

David Greene
We’ve got like five bedrooms, I’m not using.
And that’s what the number I threw out, right. Like, I could have said $200, he probably would have went with that. So, I didn’t say, “Hey, can I rent a room?” And he said, “Sure.” And then how much and now we’re negotiating the price. I structured that differently, right.

So, now I move in with this guy, I’m paying $300 a month, no utilities, no electricity, like nothing at all other than this $300 a month, and I have an entire like upstairs mansion completely to myself and a house that was about five years old.

Pete Mockaitis
I love that there. And I think there’s a cool lesson when it comes to wherever there is stupidity, there is often a mismatch of resources and thusly, an opportunity. They say, “Hey David, can you believe this guy?” and like, interesting.

David Greene
That’s exactly right, yes.

Pete Mockaitis
And that’s so much more productive and uplifting, I would say just for people being kind to each other, approach to go there as well as great way to phrase the question. In terms of free money you weren’t planning on having as opposed to “Oh, I have a resource called a room that’s empty. What should that go for?”

David Greene
Yes, and so he obviously wasn’t good with money. We knew that before we started the conversation, right. So, he didn’t value money, what he valued was like, “I want to feel like I’m a somebody.” So, he also got a little jolt out of knowing he was helping me, that made him feel like a good friend, a good person, he was providing for somebody.

So, I think a lot of us make the mistake of assuming everybody values money as much as we do when for him it meant nothing. I mean, I probably could have lived there for free if I could have sold him on how much it would have helped me or what it would have meant to me or if I did chores or something like that. But yeah, you’re right, like, he was very stupid when it came to money. And so there was opportunity that was within that kind of environment.

Pete Mockaitis
That’s good. That’s real nice. So well, nowadays, much of your opportunity identification comes about in real estate investing, and you’ve got a hot new book, The BRRRR Rental Property Investment Strategy Made Simple, which I’ve enjoyed reading. So, there’s a few things I’ll point to, but maybe you could just give us your quick take on what is this strategy? And how do you go about identifying opportunities in this particular context?

David Greene
So, the BRRRR strategy itself is, it’s a cool name first off, but is that really, the idea itself is still pretty simple. The problem with buying rental properties that you spend a lot of money on a down payment, then you spend a lot of money to fix the house up to get it ready.

Now you’ve got a property you can rent out to somebody else, but all your capital is sunk into the house. Okay, so you can’t use that capital to buy another house, that’s the inefficiency in buying rental properties, it takes you a long time to save up all the money that you’re going to dump into the property, right.

The BRRRR strategy involves buying it and fixing it up and once it’s been fixed up and it’s worth more, at that point you refinance it and take your money out as opposed to financing it in the very beginning when you buy it.

So, you can use your own money, borrow from your 401K, borrow from a retirement account, take a HELOC on your house, partner with a friend, however you find the money to buy the house, you go by the most undervalued asset that you can, and you’re looking for opportunity in homes other people don’t want.

You’re literally looking for the stinky, smelly, nasty house that most people look and say, “no, why would I ever want it”, right. Because you’re not going to be renting out that stinky, smelly thing, you’re going to be fixing it up to make it worth more.

It’s very similar to if you want to go buy a business, you don’t want to go buy a business that’s already be running incredibly efficient and would sell for top dollar. You want to step into a business that’s being mismanaged, their sales team is terrible, their operations team is off the hook, they’re spending way too much money, their profits are very thin.

So, you can buy it at a low margin, then use your skills to make that business run more efficiently and better. And then either enjoy the profit or go sell it at a margin, right. It’s the very same principle applied to real estate investing, but it’s so much easier to do it because all you got to look for is a crummy looking house.

So, you buy it, you fix it up, I often add square footage to it if it’s extra small house, I look to add square footage. If it only has two bedrooms, I look to take maybe the dining room and turn that into a bedroom to make it at least three because that’s what makes it worth more. Once that’s done, I pull the money out and I have all my capital back that I can then go use to buy the next house and I can increase the scale.

Pete Mockaitis
Well, I love that and that’s a great lesson right there when it comes to the opportunity, when something seems gross or crummy, there is an opportunity there, whether you’re buying a real estate property or a business. I’ve got a buddy who’s done this with websites.

He says, “Hmm, this is a website that has some decent traffic but could have way more if they just did a few things like A, B, C, D, I’m gonna go ahead and buy that website and crank up the traffic with these smart strategies”, and lo and behold, he’s got a really valuable source over there.

So, that’s cool and of itself is not to be disgusted by the grossness but to say, “ah, there’s something here.” And I think my favorite part of the book that I read was about— so you’ve got your five stages, your buy, your rehab, your refinance, your rent, and you repeat, so BRRRR, that’s four RRRRs, the BRRRR is where that it comes from.

And so when it comes to the rehabbing, I’ve got my property here. And it’s been a heck of a time with contractors and renovation professionals. But you had a really clever tactic when it comes to paying for bids, can you tell us about that?

David Greene
Paying a contract to do a bid for you?

Pete Mockaitis
Right.

David Greene
Yeah, so if you’re getting a contractor that’s going to go out to the house, take his time, give you a bid of what it’s going to cost to fix it up, and then you’re not using them, you’re not going to get a very good contractor. At a certain point, they’re not going to want to give you anything for free.

So, you can get free bids from guys when you’ve worked with them in the past. But if you haven’t worked in the past or you don’t have a very strong, like future potential to give them a lot of business, they’re going to want you to pay. If you really don’t want to pay, you want to look for ways around that, like “how can I bring this person value, so he’s not going to have to necessarily charge me all the time for whatever this bid that I’m looking for is,” right.

One of the ways that you do that is you send them other people who need the same work, you send them referrals, right. What business doesn’t want referrals, any sales person whose job is to find business, if you send them referrals, you’re helping them do their job, they’re going to like you, they’re going to give you something back, right.

Another one would be I would say, “Hey, if you get this job, I’ll put you on my social media, I’ll let everyone know you’re the one that did this, will take the best pictures, the best angles, it’s free promotion for your business.”

Contractors are usually not business minded people. They don’t understand bookkeeping, let alone marketing, sales and a CRM, right. So, when you’re providing this stuff, it’s immensely valuable to them because it’s like magic. Like “I’d never even thought of doing something like that,” right.

And I like to take that approach with all the people that I’m using is, “what can I bring?” Or what do I know that’s easy for me that I can use to help them that’s very difficult, much like doing the side work for like a woman who’s worked really hard and maybe has two kids, and she’s trying to raise them alone is the end of the day. She’s been up since six o’clock in the morning. She’s exhausted, she does not want to clean that coffee station. I probably slept until 10:30 that morning. I’m a 19-year-old dude, I’m in great shape. That is not a very big deal for me to go clean the coffee station, but it meant a lot to her.

Pete Mockaitis
Understood. Yeah, that’s excellent. And so, what I think is fun about your mindset that differs from any others would be like, “I’m not going to pay someone to come by and not do anything.” But you’re thinking, “No, no, no, I am paying someone for the bid in order to (1) get more bids and explore more people to see what they can do. And hey, maybe you’ll end up saving coming out ahead of a deal, and (2) to build up a relationship with the folks you find to ultimately be the rock stars.

David Greene
Yeah, when you think about the value that a good contractor can bring you versus the price of a bid, it’s not even worth comparing, right. A good contractor can make me tens of thousands of dollars just in the work that they’re doing. For me to give them 100 bucks for their time to go make a bid means a world to them but it’s nothing to me with what they’re going to bring me, right.

And that’s assuming that they’re not actually bringing you deals. I get deals from my contractors, like someone will say, “Hey, can you come look at my buddy’s house, it’s in bad shape,” and he has no one to do? And they’ll go look at it, and they’ll say, “Yeah, it’s gonna cost you $50,000 to fix it,” and those people say, “We don’t have $50,000, what are we going to do? I guess we give it back to the bank.”

I want him coming to me and saying, “Hey David, there’s this opportunity over here, they’re going to give the house up to the bank,” where I can step in and buy it and then he gets his job, he gets his $50,000 job that he wanted and I get an incredibly good deal that’s worth a whole lot more to me. I mean, some of these deals, you’ll make $50,000 in equity on an average mediocre one, right. That’s not a bad return for the hundred dollars I was willing to pay that guy to give me a bid.

Pete Mockaitis
That’s huge. I do the exact same thing with a lot of hiring for I guess, they’re contractors in terms of they are sort of contract workers in sort of the digital or information knowledge working space in terms of it’s like, “Hmm I want someone to write something or to design something, or to do transcripts,” or whatever it may be.

I will like to take a peek in terms of “Okay, well, what can you do? Let me pay you for a sample,” even though if I have no need to use that sample, just so I could see “Oh, wow, that looks way better than the other.” So, I’ve done this before is where I’ll pay 30 people for a sample piece of work, and then say, “Ah, these are the two who are really rocking it. I want to use you now hundreds of times over.”

David Greene
Yeah, and it’s a model that a lot of industries use often, like imagine a music producer trying to find the next big boy band or something, right.

Pete Mockaitis
I’m imagining that right now, with all the guys, high five again, “Hey, girl—”

David Greene
Yes.

Pete Mockaitis
I’m right there with you, David.

David Greene
Exactly. Is there a better ROI than a boy band that blows up, makes billions of dollars to sing and dance, and you sell throw pillows and all kinds of other crazy stuff. They have to go through a whole lot of people that are underwhelming, right. And they’re going to have to spend a little bit of time and money taking people lots of dinner, flying around to get to know them. But when you find that one rock star, you don’t care how much money you spent, you’re earning so much more back in the process.

Pete Mockaitis
I didn’t think we end up at boy bands but I’m glad we did.

David Greene
I don’t think that’s ever come up in one interview I’ve ever done. Good job Pete, you pulled something out of me no one else has.

Pete Mockaitis
Oh, thank you, thank you. Well, tell you before we shift gears to hear about a few of your favorite things, do you have any kind of final tips that you’d share with others who were trying to notice hidden opportunities, in their own careers, in in real estate or send the course of living life?

David Greene
Yes, I’m a huge proponent of Warren Buffett’s advice that you should be fearful when others are greedy, and greedy when others are fearful. Now he gives that advice in the context of when you’re buying stocks or when you’re investing.

So, when everyone else is saying buy, buy, buy, you should be a little worried, pull back. When everyone else is saying you’re an idiot, don’t buy, the sky is falling and they’re running around like a bunch of chicken littles, that’s when you should actually have the courage to jump in and buy.

I’ve taken that reasoning or that principle, and I’ve applied it to almost everything else. So, when everyone at my job was like, “oh, she’s coming again, I don’t want to deal with her” and they ran away, I ran towards her, right.

When their emotions were saying, “oh, this anxiety, I hate it, I should quit” or “I don’t want to take more than three tables because I don’t like the feeling I get when I do,” I would say I don’t like that feeling either but what does that feeling signaling to me that I could be improving, right. And that’s what drove me to be better to memorize the menu to get faster and making salads and bunch of other things I did that made me much more efficient, right.

Like one thing I didn’t even mention is most waiters would go to the kitchen, get ketchup come back, drop it off, the person would say, “can I have some pepper”, go to the kitchen, get the pepper come back, drop it off, I would make around to my tables and talk to all six of them and have all of them see what they needed, go to the kitchen, get all six tables’ stuff and in one trip, come back and drop it all off.

You do that seven or eight times a night and you’re saving yourself like 30 minutes of time, right. Just that one thing. But that was because I noticed every time I was going back and forth between the kitchen, the table and anxiety, “oh, I’m falling behind”, right. Everybody else was, their answer was to quit, to pull back, to try less hard, to give less. And I went the other way and I busted through.

That’s the advice that I would give people. When you have that boss that just drives you crazy and you can’t stand them, right. There’s a reason they’re acting that way. Understand what’s in their head. Are they getting it from their boss? Are they getting this pressure coming downhill? Are they insecure and they don’t really know how to do their job very well. As a cop, I got that all the time by supervisors that knew the least about law enforcement were the hardest to work for, because they were constantly afraid that a mistake was going to be made and they didn’t know how to predict it.

Well, I knowing what should be done was their favorite because I would say I would do things for them basically. So, they didn’t have to have anxiety when they were just all over me about stupid details, rather than pushing back. I was like, “oh, this guy’s terrified that something’s gonna go wrong,” right.

So, I would step in and do a lot of this stuff for them to make sure nothing did go wrong. You become their favorite. They stop ragging on you. And if and if anything, they look for opportunities to help you, right.

That’s the advice I would give your listeners. If you have a problem with the boss and you don’t like the way it feels, ask yourself how you can run towards that problem instead of away from it. If they’re constantly hounding you about deadlines, do whatever it takes to be better at your job to get it done before the deadline, then go to your boss and say, “Hey, I’m done, what other problems you have stacking up I can help you with?”, right.

Pete Mockaitis
Yes, that is so perfect and it’s so funny when you mentioned the Warren Buffett advice. I thought “Oh yeah, I read a really great article about that simplifies from Warren Buffett, guides me to deals no one else’s findings, like, “Oh, David wrote that—!” I read that years ago and it’s so good.

David Greene
That’s so funny.

Pete Mockaitis
So, if I may I’m going to embarrass you to read an excerpt, it says, “I have to target the people that others are overlooking. I want a lender able to actually return my calls. I want a property manager who doesn’t have a portfolio so large that they can’t even tell me when I have a vacancy because they’re too busy. And I want a handyman who can go immediately when something significant breaks as opposed to chasing the folks who have a ton of amazing reviews and are booked up for weeks and months to come.”

David Greene
Absolutely.

Pete Mockaitis
So good. Well, David, let’s shift gears and hear about a few of your favorite things now, can you share a favorite quote something you find inspiring?

David Greene
Well, the Warren Buffett one is pretty good. But I got another one, I got another one. It’s a Bruce Lee quote, which makes it cool right off the bat ‘cause Bruce Lee said it, right. He said, “I do not fear the man who knows 10,000 kicks, I fear the man who has practiced one kick 10,000 times.”

That’s what I did with making salads or memorizing the menu. And I got way better at that one thing and that one thing was super important for whatever my goal was, which at the time was having more tables, right.

The reason I love the BRRRR strategy with rental property investing is that it allows me to spend a dollar, get a house, get that dollar back and buy another house with the same dollar. I can scale way, way, way faster than someone who has to earn $50,000 and put that into a house and then wait till they can earn another $50,000. By buying more houses, I’m practicing that kick more than other people. And I become better and more efficient at doing it than the people who buy maybe one house a year.

Pete Mockaitis
And could you share favorite study or experiment or a bit of research?

David Greene
I love the Stanford one. I’m sure a lot of your people probably talk about that, one where they brought little kids in and they said, “Hey, I’m going to leave this room, and here’s a marshmallow. If you eat this marshmallow, that’s okay. But if I come back and the marshmallow still here, I’ll give you another marshmallow.”

And the little kids that were able to wait for the second marshmallow before they ate the first, they tracked them all. And they found that they were much more successful in work. They had much higher happiness scores, they had much less like, problems like with law enforcement and mental disorders and alcoholism and substance abuse. And the implication from the study was that the better you are at delaying gratification, the happier and more successful you’ll be.

Pete Mockaitis
That’s a good one. Thank you. And how about a favorite book?

David Greene
Man, I got a couple but I really, really, really like the book So Good They Can’t Ignore You by Cal Newport. It’s funny, we just interviewed him on our podcast yesterday. So, in a couple weeks, that one will be coming out. That’s an incredible book at just basically—a lot of the points I’m making right now, he was making similar ones, but he’s just sounds a lot smarter than me because he’s a Georgetown professor, of course. But I read it and I was like, “Yes, that’s it, that’s what I’ve been doing!” And now there’s a person with a PhD who’s saying the same thing. So, people will actually believe me.

Pete Mockaitis
Well, I’d say different voices, different credentials, a PhD or a fat portfolio of properties, I think both adds credibility to it, yeah. How about a favorite tool that helps you be awesome at your job.

David Greene
Google Drive, believe it or not, is a huge, huge help for me. Part of part of the problem with me is I’m involved in a ton of different things all the time and it’s very hard to keep my thoughts organized. Google Drive works really good for taking a thought that I have, getting it out of my head, putting it on, I would say paper but it’s actually a computer screen that looks like a piece of paper.

And from there, I can kind of flesh out whatever that idea was, and assign it to someone else and say, “I need you to take this and I need you to make it a reality.” So, Google Drive is one of the tools that I really, really, really like and it’s simple but before I had it, I was immensely frustrated with just I don’t know how to turn this process into something someone else can do. And making checklist on Google Drive and giving it to people, making a video showing how I’m doing this like a screenshot and putting the link in Google Drive that I gave to someone really brought all that stuff to life.

Pete Mockaitis
Oh, yeah, that is so huge. And for your video making, I don’t know if you’re already on to Loom as in www.useloom.com but it is so good.

David Greene
Yeah, shout out to my best friend and buyer’s agent Kyle Rankie, he told me about Loom and it’s been incredible. We were using Screencast-O-Matic before that. But it like limits you at 15 minutes, which I had to learn the hard way after making like an hour of video and then realizing it stopped recording at 15 minutes.

But Loom doesn’t do that. So yeah, we use that. Like as a real estate agent, I’m constantly training other agents on my team and I find myself saying the same thing a hundred times a week. So, now I use Loom to make these videos and say, “Just watch that.” And that should answer your question.

Pete Mockaitis
Oh, it’s so good. I like to have Loom with, I’ve got my text instructions on the left-hand side, I’ve gotten the website or whatever I’m working with on the right, and so you can reference them both. And then you can read the text and so it’s like unmistakable, what I meant by any step along the way. So, so good stuff—

David Greene
Beautiful.

Pete Mockaitis
And how about a key nugget, something you share often with your team or readers or listeners that really resonates with them and they repeat back to you often?

David Greene
I think “rock stars know rock stars” is a phrase I say a lot that sounds simple but it’s actually really deep. It’s just this concept that the best people at what they do hang out with other people that are the best at what they do. And that just this is a principle we see throughout life.

I’ve heard people say “eagles don’t fly with ducks”, “birds of a feather flock together”, like all these little sayings but when people ask me, “I need someone to do X, how would I find them?” The answer is always going to be “who do you already know that’s doing Y that would know somebody in the world of X?” That’s where I find my referrals from.

So, if you were to say, “David, I need to figure out how to solve this problem,” my mind would immediately go to who do I know that’s doing that at a high level? And if no one, who do I know this doing something similar to that at a high level? And who would they recommend?

I think most of us take way too much responsibility on ourselves to figure things out, like I’m going to go through Yelp and read 100 reviews. And I’m going to Google this for seven hours and then call all 20 people and interview each of them as if we actually have the credentials for like reading someone’s mind and knowing from an interview if they’ll be good, as opposed to talking to someone who’s already really good at it and saying who would you use?

“Oh, you know what, actually that guy, he’s great. My buddy uses him and he’s doing a high level. And that’s where I start”.

Pete Mockaitis
Yeah, that’s so good. And David, if folks want to learn more or get in touch, where would you point them?

David Greene
I have a personal blog, www.greeneincome.com where they can follow me there and read some of the articles that I write. I’m very involved at www.biggerpockets.com. This is the website where we teach people how to invest in real estate for free and the podcasts that I run, the books I publisher are through there.

And then I’m DavidGreen24 on all social media, Instagram is the when I check the most but I’m also on Facebook, Twitter, LinkedIn, like all those sites, Greene is spelled with an E. So it’s DavidGreene24.

Pete Mockaitis
And you have a final challenge or call to action to issue to folks seeking to be awesome at their jobs?

David Greene
Yeah, what I would say is most of the things that cause us to be frustrated with our lack of success can be identified as a barrier to entry in some way. There’s something making it hard for you to get from where you are to where you’re going, right. Learn to look at that like an incredibly good thing. Because that’s keeping all of your competition from raising up to go anymore. When you figure out what you need to do to get through that barrier to entry, there’s very little competition on the other side of it, and you rise very quickly.

So, for me in this example I gave the barrier to entry was memorizing menu prices. That was all that I had to do. Make some flashcards and memorize a frequent video. And the next thing that I know or memorize the menu, my boss was like, “Hey, David can handle tables, give them all to him.” And when they would get three, I would get eight or nine and then I would stay late to close and they were all going home, and when they were getting other four or five and I can triple or quadruple my income.

So, it’s the same way like being a real estate agent, it’s very hard to get started it because there’s no one that gives you business. It’s on yourself to get it and for most of us, we don’t know how to go find business on our own. That’s a big barrier to entry, keeps a lot of agents from doing well.

But if you can solve it, like all the business is yours because nobody else could figure it out. So, as I’ve gotten older, I’ve actually looked for only opportunities where it’s difficult to do because I know there’s not going to be as many people competing with me, and it will be easier to succeed once I figure it out.

Pete Mockaitis
I love it, once again, you’re reframing for opportunity. David, this has been a huge pleasure. Thank you and good luck with your real estate investing and book writing and all you’re up to.

David Greene
Thanks Peter. I really appreciate it. Have a great day.