Cliff Michaels's Blog, page 2

Harvard Joe & The Fisherman | Essential 1, Skill 1: Define Success

What’s Your Definition of the Good Life? World Peace ~ Love & Laughter ~ Art & Innovation ~ Giving & Gratitude ~ Friends & Family ~ Money & Fame ~ A Healthy Mind, Body & Soul?

Fifteen years before I wrote The 4 Essentials of Entrepreneurial Thinking, a friend sent me a fable about how we define success so I included this tenet in my book as Skill #1. Hybrids of the famous story floated on the Internet for decades. It’s been written by countless poets with themes from pirate’s tale to Buddhist myth. Curious to its origin, I stumbled upon a German writer named Heinrich Böll (1917 – 1985). Böll, a Nobel Prize winner who wrote a parable in 1963 that tells the tale of a traveling businessman who attempts to lecture a humble fisherman about success. Instead, the traveler learns a valuable life lesson from the fisherman.

I next discovered a modern version of the fable titled, “The Mexican Fisherman,” written in 1996 by Dr. Mark Albion, a fellow entrepreneur and former Harvard business professor. In 2009, Mark changed the title of his parable to “The Good Life.” When I told Mark about The 4 Essentials, he graciously approved my spin on the famous fisherman’s tale. I hope you enjoy it …

Harvard Joe and the Fisherman by Cliff Michaels

After graduating from Harvard Business School, an American stock broker named Joe decided to take a vacation. He chose a small island, famous for its quiet fishing village and local smiles. If only to take his mind off work for a few days, Joe vowed he would fish a little and avoid the money-talk

so prevalent on Wall Street.

On his first day of vacation, Joe strolled along the beach. He spotted a small fishing boat coming into shore. Inside the boat were a lone fisherman and a fresh catch of large yellowfin tunas. Dozens of tourists were handing over cash as the fisherman docked his boat. Joe was so impressed, he complimented the fisherman and asked how long it took to catch so many beautiful fish. “Not long,” said the fisherman. “The supply is endless in this treasure cove.”

“Why don’t you stay out longer and catch more fish?” asked Joe. “You would certainly make more money in such rich waters.”

The fisherman smiled and said, “Oh, I catch more than enough to support my family and lifestyle.”

“But what do you do with the rest of your time?” asked Joe.

The fisherman replied, “I read, nap, and play with my son and daughters. Some days I teach kids how to fish. Other days I play soccer with school children. In the afternoons, I stroll into the village where I sip wine with my lovely wife and play guitar with my friends. Most nights we cook fish and share recipes with tourists.” 

“Wow, you have tons of free time!” said Joe. “Listen, I have an MBA. I can help you vastly expand your business. If you simply spend more time fishing, you would earn enough money to buy a bigger boat.”

“Really?” asked the fisherman.

“Absolutely,” said Joe. “And with a bigger boat, you could catch enough fish to buy several boats and then a whole fleet. At that point you would be successful enough to sell directly to a processor, cut out the middleman, and vastly increase profits. Then you could open your own cannery and control distribution.”

“Then what?” asked the fisherman.

“If all goes well, you’ll find yourself in a big city, running a rapidly expanding empire,” said Joe.

“How long would all this take?” asked the fisherman.

“Not long at all. Maybe 7 years,” replied Joe.“With me as your CEO, I’ll bet we can do it in 5 years if we hustle. I’m all about the hustle!”

“Then what?” asked the fisherman.

Joe grinned and said, “Here’s the best part. When the time is right, we could take the company public or sell the enterprise to the highest bidder. At that point, you would be very rich — a millionaire many times over.” 

“Really? A millionaire? Then what?” asked the fisherman.

“What do you mean?” asked Joe.

“I mean, what would I do if I was a millionaire?” asked the fisherman.

“Whatever you like,” said Joe. “You could retire, move to a coastal village, fish a little, play with your kids … sip wine at night with your lovely wife … play guitar with your friends … and …”

Without another word, Joe and the fisherman shared a good laugh. The fisherman then invited Joe to return for dinner. By sunset, the fisherman had built a small fire to share his catch-of-the-day with tourists. Joe arrived just in time for the most scrumptious fish he ever tasted. As the sun faded, Joe and his new friends sang along to soothing sound of the fisherman’s guitar.“Ahhh,” Joe whispered. “The good life.”

Final Thoughts

From Harvard Joe to the island fisherman, success means different things to different people at different stages in life. Kids dream of becoming an artist, athlete, or rock῾n’ roller. Athletes hope to break records and win championships. Parents want the very best opportunities for their kids. Third-world villagers need food, shoes, clothing, shelter, education, medicine, and clean water. Volunteers and social entrepreneurs measure success by giving back. We all search for love, health, and happiness. Clearly, definitions vary. But successful people share a common thread. They define success with purpose behind passion and a journey without compromise. At some point, we all have to define it.

Are you there yet?

This blog is from a chapter in  The 4 Essentials of Entrepreneurial Thinking

Essential 1 – Skill 1 – Define Success > Get the book TODAY on audio, e-book or paperback!

 

A Challenge to Give

How lucky are 87% of us?

Most of us are blessed with healthy food, shoes, shelter, education, medicine, and clean water. Over a billion people don’t have such luxuries. Kids are at risk. 1 in 7 are hungry. Millions are physically or emotionally challenged. There are communities without schools and schools without books. Disaster relief is needed every day (War, Earthquakes, Tsunamis, Hurricanes). Health care and disease control are essential (Malaria, Cancer, AIDS … and the list goes on).

When You Buy, We Give

With each book and e-course sold at Cliff Michaels Academy, free books & courses are donated students and schools in need. A portion of proceeds also goes to global causes from cancer, AIDS, and kids at risk, to education and innovation programs.

A Challenge to Pay it Forward 

My challenge for everyone is to pay it forward in your life, career or business. Mentor youth. Volunteer time, money, and resources. Give away books you don’t read. Donate clothes you don’t wear. Sponsor a child, family, or school in need.

Together, we make a difference.

Cliff Michaels

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Tony Hsieh Interview by Cliff Michaels (Part 1 of 2)

A Happy Maverick on a Mission

In the Fall of 2011, The 4 Essentials of Entrepreneurial Thinking was 3 months away from launch when I received an endorsement from Zappos CEO Tony Hsieh (pronounced Shay). Tony’s book Delivering Happiness had recently hit #1 on the New York Times Bestseller list so I was sincerely humbled.

As a token of appreciation, I drove from Los Angeles to Vegas with a basket of Tony’s favorite snacks (beef jerky, gourmet pickles, Red Bull and Grey Goose Vodka). Upon arrival, I was pleasantly surprised that my book was in the Zappos Library, snuggled between The 4 Hour Workweek and Tribal Leadership (#1 Bestsellers). A few months later, my book hit #1 on Amazon and #3 on the New York Times Bestseller list.

The day I arrived, ABC’s Barbara Walters and her 20/20 TV crew were interviewing Tony. So I asked if he had 10 minutes for an interview with me too. He graciously said yes and we filmed an impromptu Q&A. The video highlights are at the end of this blog. Below is the article I wrote shortly after. The lessons are as true today as they were 3 years ago.

About Tony Hsieh

The son of Taiwanese parents and a computer-science graduate from Harvard, Tony Hsieh is very clear on why he wrote a book titled Delivering Happiness. In a world where attracting talent and satisfied customers is everything, Hsieh not only created a unique corporate culture driven by core values, but a global movement that includes “fun and a little weirdness.” If you don’t know the Zappos mantras, a few million fans and thousands of loyal employees will tell you why you should.

In 1999, Hsieh (24), sold LinkExchange to Microsoft for $265 million dollars. It was an Internet advertising network that he co-founded out of college. Shortly after, he invested in a series of companies, including the fledgling e-commerce company Zappos.com. Hsieh started as an Advisor and eventually became CEO of Zappos, helping the company grow from almost no sales to a $1 billion dollar juggernaut. With Hsieh’s dedication to a happy corporate culture, Zappos also made Fortune Magazine’s list of “Best Companies to Work For”.

So Whats Tony’s Secret to Success & Happiness?

On July 22, 2009, Amazon announced the acquisition of Zappos in a deal valued at $1.2 billion dollars. Then in 2010, Tony’s book, Delivering Happiness debuted #1 on the New York Times Bestseller list and stayed there 27 weeks.

Tony also hands over a Zappos culture handbook and provides free office tours (to competitors and street tourists alike). He understands that success begins with sharing. “You never know where talent or ideas come from. Why not invite everyone to the party,” says Tony.

Feel free to also lose the suit and tie at Zappos. Employees wear anything from jeans to Halloween costumes. The vibe is like a college campus party where employees are called friends and motivational mantras hang from rafters like championship banners.

As for Hsieh, there’s no private office. His cubicle is in the middle of the madness for optimal interaction with employees.

But it wasn’t always fun and games for Tony. Here’s what I learned from our Q & A …

ONE-ON-ONE with TONY HSIEH

Cliff: Thanks for your time today and congratulations on the successful sale of Zappos to Amazon. I really enjoyed reading your book Delivering Happiness. Could you take us through your story with LinkExchange as your first baby and Zappos as your big baby?

Tony: Sure. Back in 1996 after graduating college, my roommate and I started a company called LinkExchange. We specialized in online advertising and grew that company to about 100 employees. We ended up selling the company to Microsoft two and half years later for $265 million. But what a lot of people don’t know is the real reason we ended up selling — it just wasn’t fun anymore.

The company culture went completely down hill. When it was just five or ten of us, it was a typical dot-com. We worked around the clock and slept under our desks. We had no idea what day of the week it was, but it was fun. We started hiring friends which worked pretty well until we got to about 20 people and ran out of friends. Then we had to hire people based on resumes and interviews. We were fresh out of college and had never done it before. I did a decent job in terms of hiring people with the right skills and experience, but we didn’t know about company culture — so not everyone we hired was good for us.

By the time we got to 100 people, I dreaded getting out of bed and going to my own company. That’s really what led us to sell. We got lucky with timing because it was the first dot-com boom. So I started investing in companies. But after a year, I was tired of sitting on the sidelines. I missed being part of building something. Of all the investments, Zappos was the most fun and promising so I ended up joining the company and becoming its CEO.

Cliff: On that note, let’s talk about the famous Zappos 10 Core Values.

Tony: When we’re hiring, we don’t say, “This person has 9 out of 10, we’ll let them pass.” We really need all 10. The core values are:

1. Deliver WOW Through Service

2. Embrace and Drive Change

3. Create Fun and A Little Weirdness

4. Be Adventurous, Creative, and Open-Minded

5. Pursue Growth and Learning

6. Build Open and Honest Relationships with Communication

7. Build a Positive Team and Family Spirit

8. Do More with Less

9. Be Passionate and Determined

10. Be Humble

Cliff: Were those principles the inspiration for your book Delivering Happiness?

Tony: Originally, it was about spreading the idea of “happiness” as a business model to other companies. That includes making customers, employees and business partners happy. Along the way, we decided to go on a book tour. It felt like planning 80 weddings over 4 months. We actually got the bus from the bass player of the Dave Matthews Band.

Cliff: What evolved from the tour?

Tony: Delivering Happiness was written as a business book but people took away something more. That surprised us. We had moms e-mailing us, saying they were now the CEOs of their families and thinking like value-driven corporations. We heard from charities that said they were going to focus more on their culture. We even heard the book was going to be required reading at certain colleges.

Cliff: That had to be rewarding. What happened next?

Tony: The tour led us to start a company called Delivering Happiness. This whole idea of inspiring and being inspired fostered a movement with happiness beyond the business level.

Cliff: So what’s the biggest challenge in getting that happiness message adopted within a large organization like Zappos, since everyone has a unique definition of success … or happiness?

Tony: If you want to go with one, simple principle, just be true to yourself. One of the things we really encourage at Zappos is to bring your true personality to the office.

Cliff: (smiling) One of my favorite quotes on that theme is by Oscar Wilde, “Be yourself, everyone else is taken.” Where’s your biggest passion these days?

Tony: I’m still CEO of Zappos ad we’re moving to downtown Las Vegas. We’ll integrate the Zappos campus and city together.

Cliff: So you’re spearheading a renaissance. Is there a city you might use as a model?

Tony: I think it’s got it’s own personality (neighborhoodie) and community feel. There’s an area (Fremont East) with eight or nine bars and cafes where owners hang out in each other’s bars. There are tech companies and start-ups there too. I’d like to see a growing art scene and more live music. Ultimately, everything you need to live, work, and play would be within walking distance. On my wall at home there are about 70 post-it notes. They’re passion projects for downtown. These ideas aren’t coming from me. They stem from anyone with a passion about their community.

Cliff: You’ve now evolved from a technology CEO and bestselling author to a community builder. It’s great to see an entrepreneur cross bridges. Did you ever imagine you’d change a city the way you changed a business model?

Tony: Not at all. We were originally thinking Apple, Nike, and Google all have great campuses, but they’re very insular. They don’t really integrate with the community or contribute to the environment. We want to take more of an NYU approach; almost a seamless transition between the city and campus.

Cliff: Great stuff. Who were your mentors?

Tony: There wasn’t a single mentor or book. There’s something to learn from almost anyone. Here at Zappos, we have a large library with something to learn from countless books.

Cliff: Yours library is like a museum. Thanks for including my book The 4 Essentials of Entrepreneurial Thinking. From all you’ve learned, what are your biggest fears?

Tony: Based on past experience, I want to make sure the Zappos culture not only scales, but gets stronger. That’s why this campus move to downtown is exciting. It will take our culture to a whole new level. Every bar or bookstore will become an extended conference room. Employees are already gravitating downtown. On any given night, every bar feels like Cheers.

Cliff: Walking through the Zappos halls, I hear cowbells, pride, and passion. Your co-workers speak of you as a friend. That culture is rare and stems from how much you give back. Can you speak about the charitable aspect of Zappos?

Tony: It’s funny because it all goes back to what people are passionate about. When we were smaller, we could only afford to give to one local or national charity. We basically sent a survey out and asked employees what they would suggest.

Cliff: So you engage employees to make decisions, even about charities?

Tony: Right. Now that we’ve grown, we can do more and still leave it up to the employees.

Cliff: Do you think boredom is what drives you to constantly improve?

Tony: I don’t think that’s unique to me. Everyone wants to grow and flourish. Everyone may not instinctively know how because they’ve been stuck in a boring job for ten years. But I think once you push people slightly outside their comfort zone, they realize there’s more potential in them than they may have realized.

Cliff: On that thought-provoking note, thanks for your time today Tony. It’s been an inspiring interview. Good luck with the new Zappos campus … and keep delivering happiness!

 

Part 2 of this interview provides Tony’s Top Tips on Social Media. Part 2 with Tony & Cliff.

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How to Unleash Your Entrepreneurial Soul

In The 4 Essentials of Entrepreneurial Thinking, I set out to dispel a few myths about born entrepreneurs and the genius-at birth-theory. I analyzed innate talent, I.Q vs E.Q, great teachers, supportive parents, private coaching, soci0-economic advantages, and the value of a college degree. While each of these are a substantial leg-up, well-educated and privileged people often fail miserably in life, careers or business. We also know underprivileged people who came from poverty, had life trauma, or physical and emotional challenges, and managed to excel (Oprah, Richard Branson, Jackie Robinson, Thomas Edison, Helen Keller, Steve Jobs, The Beatles).

We can draw only one conclusion … From classroom to boardroom and battle field to playing field, we’re all entrepreneurs.

Be it an artist, athlete, high-tech CEO, or barista in a coffee shop, each of us is destined to boldly go where others only dream once we tap into the entrepreneur’s mindset. Yes, we all have it. We’ve all lied awake at night with a driving force that says, “There’s a better way.” At the core is imagination and a mission to improve the human experience. For most leaders in their field, the inspirational spark wasn’t a gift at birth. It came from a poet, book, movie, friend, parent, musician, or teacher. Sure, Mozart was extraordinarily musical, Bruce Lee was freakishly Kinesthetic, and Picasso was, well, Picasso. But each of us has a unique spark … and it can ignite with the simplest questions:

What if ? Why not ? When can we start ? Who do we know that’s been down this road?

What worked? What didn’t? What lessons were learned? What’s the best use of my time?

Highly successful people master these questions, then focus on their unique abilities. And you’ll never ask a silly question like, “Will I need to work overtime?” The answer is, “You bet! You’ll work your ass off! At that moment of clarity, you’ll unleash your entrepreneurial soul!

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Essential 1 Skill 8 Embrace Challenge & Change

Challenge

“The ultimate measure of a man is not where he stands in

moments of comfort, but where he stands at times of challenge.”

Martin Luther King, Jr. ( 1929 – 1968 )

American Civil Rights Leader

Change

“It is not the strongest of the species that survives,

nor the most intelligent, but the one most responsive to change.”

Charles Darwin ( 1809 – 1882 )

English Naturalist, Theorist

How We Look at Things

Any challenges most of us have will pale in comparison to billions of people who

suffer around the world. So in spite of personal and professional setbacks, there

were a few life lessons that taught me really well …

Although I had a somewhat dysfunctional childhood (divorced parents, eight

schools, ten homes), I never starved and was blessed to travel as a youth soccer

player. Hopes of an athletic career were crushed due to injuries, but that led me

to entrepreneurial thinking. When I started in real estate, the market crashed

and I lost everything, but that inspired me to launch my first company. In my late

20s, I ventured into technology and raised millions of dollars, but our company

failed. We suffered a family tragedy that same year, but self-reflection enabled

me to discover greater purpose as a writer and more social entrepreneur.

Perspective is everything …

3 Immutable Laws in Life and Business

1 There will be a crisis.

2 There will be challenges.

3 There will be change.

From financial setbacks to family tragedy, adversity will be a test of courage

and character. It will be a time to build new skills and relationships. It may even

be a time to renew purpose. As the cliché goes …

Never miss the opportunity in a crisis.

Analyzing Crisis – Thriving on Change

The opportunity in a crisis begins with self-awareness. What are my

strengths and weaknesses? What’s the mindset of those around me? What

changes are essential? To address these questions, behavioral experts often look

at 5 stages of grief, credited to Swiss psychiatrist, Elisabeth Kubler-Ross (1926-

2004). The Kubler-Ross theory was first introduced in her book, On Death and

Dying (1969).

The 5 stages of grief are: denial, anger, bargaining, depression, and acceptance.

As a method for dealing with trauma or loss, the grief model provides insight

to how we deal with crisis or change, each according to personal experience, as

well as social or emotional wisdom.

My own experience with crisis is that time between stages of grief is not the

same for everyone. In fact, I’ve noticed that stages are often skipped. Some

people jump from denial to depression. Some people suppress anger. Others

regress from acceptance and return to denial. Recognizing these patterns is

essential, if for no other reason than to appreciate what others may be going

through and how we might deal with our own challenges. For leaders, managers,

and authority figures, it’s especially important to recognize behavior among

coworkers, customers, and communities (local, national, and international).

Let’s now apply the Kubler-Ross model to a global challenge …

The 2008 Financial Meltdown

In the fall of 2008, an economic crisis struck nearly every corner of the globe.

Spearheaded by the near collapse of America’s banking, auto, and real estate

industries, millions of people spiraled into denial, anger, and depression.

Before the crisis, countries enjoyed great prosperity, oblivious to economic

time-bombs ready to explode. When the stock market finally crashed, the world

woke up to tragic flaws in financial systems and government practices. Many

had fallen prey to investor schemes, mortgage fraud, and pitfalls of their own

greed. Unemployment would rise to levels not seen since the Great Depression.

Retirement savings were wiped out, illusions of home values stripped away, and

years of work destroyed. How would most people deal with the meltdown?

Depending on a person’s experience, they would typically respond with one or all

of the Kubler-Ross grief stages …

Stage 1 – Denial

Everything is f ine. This isn’t happening to me.

Before the 2008 economic crisis, financial assumptions were often based on

a false premise that parades last forever. These assumptions were rooted in

personal greed, non-sustainable debt, and fraudulent accounting to name a few.

This was a toxic blend for disaster. In fact, Denial of sound financial principles

and a lack of personal accountability were just a few elements that kept the

illusion alive for so long.

It was months after the crisis hit that Alan Greenspan, former Chairman

of the United States Federal Reserve, acknowledged a flaw in his own financial

theories. He and most economic experts foolishly believed that bankers, business

leaders, and governments would always be honest; regulating themselves

in the interest of free and fair markets. But world citizens quickly joined Wall

Street in a state of collective shock. Why it took so long to recognize so much

reckless behavior remains a mystery. (It’s fair to say many citizens, politicians,

and business leaders were still in denial years after the crisis.) Denial can’t last

forever though. If you lose a job or can’t pay bills, reality kicks in. Rich or poor,

a state of panic often triggers Kubler-Ross Stage 2: Anger …

Stage 2 – Anger

Why me? Who’s to blame? This isn’t fair.

The old expression, “America sneezes and the world catches a cold,” was never

more apropos than in 2008, but this time banks and insurance companies had a

heart attack. As the world blamed America, everyone blamed fat corporations and

incompetent governments. Anger was the dominant response.

The truth is business and political leaders worldwide had turned a blind eye

to corrupt behavior for decades. But no one was willing to take responsibility for

their own state of denial long before things went bad. Serious changes in spending

and borrowing would now be imperative. Yikes! Most people don’t like change.

Time for Kubler-Ross Stage 3: “How can we Bargain our way out of this mess …?”

Stage 3 – Bargaining

I promise to be good. Just let me live to play another day.

While no one had perfect solutions to a once-in-a-generation financial storm, the

bargaining game of the century began. Everyone looked for handouts. Individuals,

companies, and countries alike started negotiating for their own survival. Everyone

was certain their solution was best.

At the height of the panic, Lawrence Summers (former Harvard President

and Director of National Economic Council for President Barack Obama) said,

“There are only two types of economists in today’s world; those who don’t know,

and those who know they don’t know.” Suddenly, investors realized that even the

most trusted financial minds don’t know what they’re doing. Are we laughing or

crying yet? Time for Kubler-Ross Stage 4: Depression …

Stage 4 – Depression

I’m beyond sad. I see no solutions. No one understands my problem.

For those who lose a job or home, lifestyle interruptions are traumatic. When

it occurred on a global scale in 2008, the financial collapse spawned a collective

melancholy. For millions of people, manifestations on mind and body were so

debilitating, they fell straight into depression. But there’s always hope. The goal

in any crisis is to move past denial, anger, bargaining, and depression and arrive

at Kubler-Ross Stage 5: Acceptance.

Stage 5 – Acceptance

I understand. I’m ready to recover and take action.

The sooner we arrive at acceptance, the sooner we can focus on solutions.

This is the moment where we’ve exhausted the previous 4 grief stages and

come to a healthy conclusion; that we can gain strength from a negative

experience and persevere. This is not only in our self-interest, but for the

greater good of those around us.

5 Steps to Arrive at Acceptance

1 Show humility and ask for help.

2 Understand the benefits of change.

3 Be optimistic and trust that there’s a way.

4 Be open-minded and willing to change habits.

5 Gain perspective. Others overcame similar situations.

Handling a crisis requires a strong awareness (and practice) of The 4 Essentials,

especially highly-connected principles like humility, teamwork, and self-awareness.

It’s also important to exhibit empathy and confidence when those around

us are confused or frightened. Without a courageous mindset, denial breeds

anger, anger sets off bargaining, depression take over, and acceptance is harder

to come by. The most effective entrepreneurial thinkers however (especially

friends, family, and leaders), tackle grief by serving as an inspirational force to

others. Our peak performance peers also accept chaos as part of life and business,

without allowing setbacks to dominate the landscape too long.

So embrace your challenge …

“… Life is about growth and change.

When you are no longer doing that, listen to your whisper.”

Oprah Winfrey (1954- )

American Talk-Show Host, Entrepreneur, Philanthropist

“You must be the change you wish to see in the world.”

Mohandas Gandhi ( 1869 – 1948 )

Indian Activist, Peacemaker, Spiritual Leader

Without personal experience in crisis management, I could never

have written this book. But each of us must find their own way to handle

challenges or significant change. The best advice is to start with an entrepreneurial

mindset: Who’s been down this road? What worked? What didn’t? What

lessons were learned? From these baseline questions, you’ll be on the shortest

path to a new beginning.

 

This blog is from a chapter section in…

The 4 Essentials of Entrepreneurial Thinking

Essential 1 – Skill 8 – Embrace Challenge & Change

Essential 1 Skill 9 Be Ambitious but Recognize Greed

“You can’t have everything. Where would you put it?” Steven Wright 

Greed is Good (maybe)

“Greed, for lack of a better word, is good. Greed is right.

Greed works. Greed clari”es, cuts through, and captures the essence of the

evolutionary spirit. Greed, in all of its forms … greed for life, for money,

for love, knowledge … has marked the upward surge of mankind …”

Michael Douglas as Gordon Gekko

From the movie Wall Street, an Oliver Stone Film (1987)

The speech was memorable but there may never have been a more twisted use

of the word greed than Gordon Gekko’s slick pitch at a shareholder’s meeting in

the movie Wall Street. A stereotype for individual and corporate excess, Gekko

is as much the poster child for avarice today as he was in the ’80s.

#e following essay is a healthy reminder about ambition and greed.

Wall Street

In the wake of 2008’s economic meltdown, Oliver Stone released the sequel

to his hit movie, Wall Street. My friends and I decided to make a fun night of

movie-watching, analyzing both the 1987 original and 2010 sequel. Question of

the night: “Were ambition and greed somehow different in the ’80s from the

21st century?”

For those who need a refresher on the original Wall Street, ambitious but

naïve stockbroker Bud Fox (Charlie Sheen) enters a world of corruption when

he pursues a job working for his idol, corporate raider Gordon Gekko (Michael

Douglas). Gekko takes Fox under his wing, but only if Fox will provide illegal,

insider information. Enticed by big money, a trophy blonde, and a high-society

lifestyle, Fox succumbs to Gekko’s spell, the allure of power and profits.

Fox fails to see that Gekko is only using him to destroy Bluestar Airlines, a

company where Fox’s father works and the source of insider information Fox

feeds to Gekko. Once he realizes he’s nothing more than a pawn, Fox feels

remorse for the damage he’s done to those who trusted him, including his father.

In a watershed moment about greed, Fox pleads with Gekko not to break up his

father’s company and layoff thousands of workers.

Fox: “When does it all end? How many yachts can you ski behind? How much

is enough?”

Gekko: “It’s all about bucks, kid. The rest is conversation … It’s not a question

of enough … It’s a zero sum game. Somebody wins. Somebody loses. Money itself

isn’t lost or made. It’s simply transferred … from one perception to another …

like magic … the illusion has become real. The more real it becomes, the more

desperate they want it … Capitalism at its finest.”

Gekko’s calculated response wakes up Fox to the empty life he’s chosen. In

a last-ditch effort to set things right, Fox double-crosses Gekko but is detected

by the Securities and Exchange Commission for insider trading. Jail is the final

payoff for Fox and Gekko.

Fast Forward to 2010 >> time to see the sequel, Wall Street II, Money Never

Sleeps. By the time we left the theater, my friends and I were laughing our heads

off at how little things had changed since ’87. No need to spoil the flick for those

who haven’t seen it. Suffice to say, a Gekko doesn’t change colors easily.

Our conversation next turned to schemes of modern day Gekkos, alive and

well in the slick suits of crooks like Bernie Madoff. For anyone who missed the

broker crime of the century, Bernie Madoff was a modern-day financial advisor

who ripped off investors, charities, and the elderly to the tune of billions of

dollars. His Ponzi scheme had been going on for decades. Fortunately, Madoff

was exposed as a thief and jailed for life in 2009. In the end, my friends and I

drew a few conclusions about ambition and greed from the Wall Street movies:

! We all have ambition and that’s a good thing. The question is whether

goals are attached to values. If not, the worst-case scenario may cause

an ambitious Fox to sleep with a slimy Gekko. Scary crossbreeding!

# There will always be Gekkos and Madoffs in the world who screw innocent

victims out of life savings and then feel no remorse. We can only

hope the legal system works when these career criminals are exposed.

% None of us with a logical mind would allow greed or peer pressure to

interfere with honest ambition.

I then went home, turned on the television, and my new theories about ambition

and greed were turned upside down. What game show do you think was on …?

Deal or No Deal

As if back-to-back Wall Street flicks weren’t enough, the best lesson in greed came

later that night from a comedian, his banker, and their 26 girlfriends. Hopefully,

you’ve seen the game show Deal or No Deal. If not, I’ll summarize, then analyze.

The show started in the Netherlands in 2002 and was exported to dozens of

countries, including the United States. There are slight variations but I’ll stick

to the American version.

The game is a pop-culture phenomenon where 26 sexy girls in super-tight

dresses each hold a sealed, numbered case (1 through 26). Each case has a hidden

monetary value inside between one penny and $1,000,000 dollars. Follow the

player’s odds carefully — half the cases (13 of 26) range in value from a penny

to $750 dollars. The other 13 cases range from $1,000 to $1,000,000 dollars. 7 of

those 13 cases range from $1000 to $100,000 dollars. This means the first 20 of

26 cases have $100,000 dollars or less. Only 6 of 26 cases have $200,000 dollars or

more. Only 1 case has the million-dollar teaser.

At the beginning of the show, the contestant chooses a sealed case to hold,

and then begins opening the remaining 25 cases in rounds of 6, 5, 4, 3, 2, and

finally 1 case at a time. With each round, the odds of a contestant’s original

case having a high-dollar amount increases or decreases, depending on which

values have been knocked out. Between rounds, a cash offer is made to the

contestant. The game ends when the contestant decides to accept the latest

offer. In other words, the show isn’t about winning or losing — the contestant

is a guaranteed winner … it’s simply a question of how much.

Initial offers tend to be $10,000 to $50,000 dollars. That’s a great pay day but

no one ever takes the first or second offer. They don’t take the third offer either

because it’s rarely six figures. This means contestants must risk knocking out 18

of the 26 cases to shoot for bigger offers in the fourth round. The longer the

game goes on, the higher the risk of knocking out those big dollars.

It’s impossible to see what’s in the original case selected unless all offers are

rejected through six rounds, leaving just one other case remaining to compare

with the original selection. No one in their right mind does that without a safety

net of large numbers remaining, so no one ever has a reasonable shot at winning

$1,000,000 dollars. It’s not complicated. The odds suck against winning more

than $100,000 dollars. People try and often go home with less than $1,000 after

being offered $50,000 to $100,000 dollars. Hysterical, right?

Welcome to Psychology 101 — the game is really about risk-assessment under

pressure, or more accurately stated, “healthy ambition versus greed.” And there’s

nothing subtle about how the show manipulates the contestant — hot lights, sexy

girls, and a live TV audience. “Deal or No Deal?” asks host, Howie Mandel, as he

takes intermittent calls from his imaginary banker (a man who sits in a shadowy

cloak of darkness). The banker calculates odds and makes offers to contestants

between rounds.

To create added suspense, the show pauses so Howie and the contestant can

chat with friends and family members, asking if they feel the latest offer should

be accepted. Meanwhile, the audience screams for greater risk. “No Deal!”

As the stakes get higher, Howie even asks contestants if they “have the guts to

go all the way?” Hi there — you’ve just been called out in front of a national TV

audience. The shenanigans are all part of a clever ploy to play on the contestant’s

ego, greed, and emotions. Common sense is thrown out the window.

So what’s the real deal? On January 12, 2006, #e Wall Street Journal reported

several studies about Deal or No Deal, conducted by economists who assessed

decision-making under risk. The study revealed that contestants take greater

risk when they’ve already seen their highest offer go down, kind of like a poker

player who was up $10,000 dollars, loses half his money, then believes he can win it

back. Statistically, we know the longer a player stays in a game of risk, the greater

his chances of losing. But game-show contestants get greedy, just like gamblers.

Remember, the contestants on Deal or No Deal didn’t risk anything, so the idea

of winning back lost money is not the same as a gambler who started with his

own cash. Because the contestants are playing with the show’s money, their sense

of risk is diminished. The study even concluded the biggest losers rejected not

only good offers, but would risk everything to get closer to what the best offer

once was. Countless players turn down six-figure fortunes in hopes of something

better, but before the offers get too high, the number of cases remaining are

low. This means the odds are greater in final rounds that high numbers will get

knocked out, causing offers from the banker to plummet.

Should I go for $125,000 while $100,000 dollars is on the table, knowing the

next move could cost me $50,000 dollars? Smart contestants understand the

basic odds and quit before losing a great offer. However, emotional contestants

become pure gamblers and lose their minds. It’s funny to watch since the show

requires zero skill other than common sense.

One contestant was offered a choice to go for $1,000,000 dollars, having been

offered $603,000 dollars with only one other case remaining (the case with one

dollar). Sure enough, he gambled and went home with just a dollar. It was the

biggest bonehead decision in game-show history.

Ironically, my evening dissecting the two Wall Street movies ended up with a

deeper understanding of ambition and greed after analyzing Deal or No Deal. I

concluded that greed can affect virtually anyone the same way it does when Wall

Street tycoons play with other people’s money.

What lesson should we take away? Imagine a stranger comes up to you on the

street and offers $100,000 dollars. He then says, “Double or nothing. Deal or no

deal? You have 60 seconds to make up your mind.” Unless you’re independently

wealthy and can afford to lose a life-changing offer, don’t be a putz …

Take the deal!

“Ambition is the path to success.

Integrity is the car you drive in. Greed is the fork in the road.”

Cliff Michaels

Ambition is good but greed and perfection are not the smart entrepreneur’s

friend. This principle applies to building a career, negotiating a

contract, or running a business. It should also be of interest to those who demand

focus groups or heavy research to make even the simplest decision. I’m now

whispering to my MBA pals with the lovely spreadsheets and 100-page business

plans. In our zeal to know it all (or have it all), the competition can fly right by

us. So remember this credo:

Entrepreneurial thinkers are more concerned with doing than data.

No matter how ambitious you get, never let perfect ruin good.

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This blog is from a chapter section in…

The 4 Essentials of Entrepreneurial Thinking

Essential 1 – Skill 9 – Be Ambitious but Recognize Greed

3 Degrees of Social Impact is the new 6 Degrees of Separation

On Nov 22, 2011, a team of scientists at Facebook and the University of Milan released a study based on 721 million Facebook users with a theoretical connectivity of 69 billion friendships. The study showed that any two individuals in the world can be connected through 4.74 acquaintances. Hmmm? That sounds a lot better than 6 degrees of separation!

Scientists have been conducting these social network experiments for decades. But in 1967, a psychologist named Stanley Milgram set the standard when he conducted an experiment with 160 people in Omaha, Nebraska. It was seminal work that preceded the Facebook phenomenon.

As part of his Harvard dissertation, Milgram asked participants to forward a package to a friend who they believed could bring it closer to a stockbroker in Boston; the subject of Milgram’s experiment. Each participant received instructions to mail a folder to a friend they knew on a first name basis. Each person passed along the same instructions, hoping an acquaintance might know Milgram’s stockbroker.

The experiment sounds like an old-fashioned chain letter, but Milgram tracked progress through return postcards in each letter. There was an average of six degrees of separation between the original sender and the target recipient in Boston who received the package.

Fast forward to 1990 >> American playwright, John Guare, wrote a Pulitzer-Prize nominated play titled Six Degrees of Separation, inspired by a real-life con artist named David Hampton. The 1993 film based on Guare’s play is awesome too, starring a young Will Smith, Donald Sutherland, and Stockard Channing. The story proposes that any two of us are connected at most by five others.

The Origin of Kevin Bacon’s 6 Degrees

In 1994, actor Kevin Bacon joked in an interview that he had seemingly worked with everybody in Hollywood, or at least someone who’d worked with someone. Sure enough, the social buzz exploded that year when four college students from Albright (Craig Fass, Christian Gardner, Brian Turtle, Mike Ginelli) invented a party game called Six Degrees of Kevin Bacon. The students began speculating on the number of films Bacon had appeared in and how everyone was connected to the famous star one way or another.

The students then wrote a letter to talk-show host Jon Stewart, telling him that Kevin Bacon was the center of the entertainment universe in their “silly party game.” And just like that, the students found themselves appearing on The Jon Stewart Show to explain the cocept.

Before long, a book and trivia game were released and Six Degrees of Kevin Bacon was a cultural juggernaut. In 2007, Bacon also formed a non-profit called SixDegrees.org. His organization teamed up with a popular charity called Network for Good to power a website that linked users to over a million charities. You’ll tell friends, they’ll tell friends, and soon enough you’ll have a movement. But how can we channel all this wisdom for social impact on a more practical level? Can we improve on 6 degrees or the 4.74 separation phenomenon noted in the Milan-Facebook study!

3 Degrees of Social Impact

I think we’re closer to 3 degrees than 6 or even 4.74. Each of us has the ability to make a greater social impact than ever toward simply by tapping our individual spirit and a few friends or co-workers. For every dollar earned, perhaps you’ll give a small portion to charity. If you own a business, maybe you’ll donate products or services with each sale.

87% of us have access to food, shoes, shelter, education, medicine, and clean water. 1 in 7 are hungry. Kids are at risk. Millions are physically and emotionally challenged. There are communities without schools and schools without books. Disaster victims need our help (Earthquakes, Tsunamis, Typhoons, Hurricanes). Medical research needs our support (Malaria, Cancer, AIDS, Austism).

From students to celebrities, the ability to make a difference has never been easier. Non-profits such as KIVA enable anyone to lend as little as $25 to small business owners in third-world countries. Educators like Salman Khan, Founder of Khan Academy are posting thousands of free lectures in math, science, and history, making quality education more accessible than ever. Blake Mycoskie, Founder of TOMS Shoes spearheaded a one-for-one business model that encourages companies to give something back with each sale, like a pair of shoes to a child in need.

If you’re part of a club or member organization, you can join forces with two other clubs. How about 3 schools or 3 companies working together for a cause? How about 3 charities pooling their networks for a giving event? You don’t need to be famous or have billions of dollars like Bill Gates and Warren Buffett to give back. You don’t have to be a diplomatic leader like Bill Clinton or a celebrity like Oprah or Sean Penn. You don’t even need to worry about 6 or 4.74 degrees of separation  Just think 3 degrees of social impact.  Together, we can all make a difference!

CliffMichaels.com – Giving Back Mission

With each sale at CliffMichaels.com, we give FREE books & e-courses to schools & students in need.

2014 Resolutions | 10 TIPS for Goals in Motion!

What Really Happens to New Year Resolutions?

Every December 31, we reflect on the past 12 months. What worked? What bombed altogether? Then we set new goals for health, wealth, careers, startup ideas or expanding business. That’s never enough so we pile on passions like writing a novel, adopting puppies, fun with friends, time for family, and hiking Kilimanjaro. Some are reasonable, others never get a chance. By March, 101 to-dos taunt us from desktops and refrigerator doors.

Want to keep your 2014 goals in motion? Here are 10 steps to guaranteed success!

1. Make it FUN!

The #1 reason goals fall apart is they never motivated us in the first place. Add “the play factor” to inspire your mission, friends, co-workers, and teammates.

2.  Stay HUMBLE!

If goals are stifled, ask for help. You may be closer than you think.

3.  Create BENCHMARKS & TIMELINES to support your PURPOSE!

Whether you hope to double sales, change careers, launch a business, get in shape, find love, or save the world, hardcore goals require S.M.A.R.T. routines (Specific, Measurable, Achievable, Relevant, Timely). Expect what you inspect!

4. THINK BIG but remember LESS CAN BE MORE!

Goals that start too big often fail to address little things first. Don’t put so much on your plate that essential projects never start or simple steps get half baked.

5. Don’t let PERFECT ruin GOOD!

Don’t always compromise good at the expense of great? Just start, get messy and be willing to screw up. Getting great requires deliberate practice with progress.

6. Write lots of THANK-YOU notes!

The fastest path to success is paved through gratitude. The return on that investment yields loyal clients, supportive friends, and great karma.

7. Maintain PASSION in your PURPOSE + PATIENCE in your PRACTICE

Clarify “WHY” you set that goal in the first place and ask friends to hold you accountable by checking on “the results” of your practice routine. Be patient but persistent!

8. FOCUS on what you do best, then delegate, collaborate, or eliminate the rest!

Hyper focus on your unique ability. Be willing to outsource or bring in co-workers and experts for things you don’t have time for, don’t like to do, or don’t do well.

9. Stay THIRSTY my friends!

Complacency kills the competitive spirit! If the goal is critical, you have to CRAVE it!

10. It’s not enough to THINK different. Have the COURAGE to BE different. As Mark Twain said, “Don’t be afraid to go out on a limb. That’s where the fruit is.”

   

Carpe Diem & Grow Rich: The Hidden Secret in Napoleon Hill’s Classic Bestseller

When I was 19, a friend suggested Napoleon Hill’s classic, Think and Grow Rich (1938). As a teenager who swallowed self-help books by the dozen, my initial reaction was “Oy vey, not another positive-thinking book!” But I promised my friend I would it. After all, millions loved it for a reason.

Impatient as always, I skimmed the introduction and got the gist but by the time I finished the first chapter, I had a totally different take than the famous title suggested. In 1908, a 20-something Napoleon Hill was a young journalist who landed an interview with industrialist Andrew Carnegie, one of the wealthiest men in the world. Carnegie encouraged Hill to study hundreds of successful men and women hoping to uncover a common mindset for success. Over the next twenty years, Hill ended up researching everyone from Edison to Rockefeller. Then in 1928, Hill and Carnegie co-published their findings under the title, Laws of Success. Ten years later, Hill published Think and Grow Rich, one of the all-time bestsellers. In time, Hill’s name became synonymous with his trademark expression, “What the mind of man can conceive and believe, it can achieve.” However, my study of this classic unravelled an equally essential rubric.




Hill’s first story in Think and Grow Rich sets up his basic premise. He tells the tale of Edwin Barnes, a poor and uneducated man who has the gumption to show up at Thomas Edison’s laboratory asking for an apprenticeship. Barnes wants to learn from the master inventor in hopes of working with Edison, not just for him. Well, someday comes when the Edison Dictating Machine is sitting on the shelf collecting dust. Barnes is positive he can sell the machine and persuades Edison to let him take it to market. He becomes so successful selling the machine, Edison grants Barnes nationwide distribution and they end up making millions.
Moral of The Story

A man with no money or education was able to think and grow rich with desire and a positive attitude.

The Bigger Lesson

My take on the Barnes story leads me to believe Hill’s book should have been titled, Carpe Diem and Grow Rich. While positive-thinking is widely accepted as the secret to Think and Grow Rich, I’m convinced Barnes’s TOP ESSENTIAL was being a man of action. Book fans may debate this. But what comes first? Thought or action? Chicken or egg? Who’s likely to be more successful … action-oriented people or positive-thinking couch potatoes? In Think and Grow Rich, seize-the-day principles are baked right in (make decisions, avoid procrastination, use imagination, acquire knowledge). Even Hill would agree positive thinking isn’t a light switch we flick on at will because we all have negative impulses from time to time. However, it’s when they’re not positive that successful people show up and make things happen. In spite of doubts and fears, I bought my first property at 19, in part because I had a desire, but in practice because I watched what successful investors did every day. They showed up, worked their butts off, and wrote daily thank-you notes even when they didn’t feel like it. That persistence is how they outpaced competitors and got the best deals.

Yes, my suggestion to change the title of Hill’s all-time bestseller was something of a silly teenage rant. I’m also sure Carpe Diem and Grow Rich was in the back of my mind when I didn’t feel like showing up. Thanks, Mr. Hill. You truly were my first business mentor



The 4 Essentials of Entrepreneurial Thinking

In his New York Times Bestseller, Cliff Michaels dispels the myth of born entrepreneurs and proposes a paradigm shift in global education. Taking readers on an inspiring personal journey, Michaels shares his foibles, triumphs, and tribulations as a young entrepreneur, then unleashes a dynamic system of timeless lessons
anyone can follow.

On the cutting edge of success training for over 20 years, Michaels draws on classic and modern mentors from da Vinci, Edison, Mozart, and Einstein to Jobs, Oprah, Branson, Spielberg, and more. Street-smart & thought provoking, The 4 Essentials isn’t just for entrepreneurs. It challenges all of us to earn a real-world MBA – your Master’s in Basic Abilities.

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Carpe Diem & Grow Rich: The Genius of Napoleon Hill

A Classic Lesson

When I was 19, a friend suggested I read Napoleon Hill’s classic, Think and Grow Rich (1938). My candid reaction was, “Isn’t that the one with the big secret? At that stage of my life, I had swallowed every self-help book I could find so my initial reaction was “Oy vey, not another positive-thinking book!” Still, I promised my friend that I would read Hill’s masterpiece. Millions of people loved it for a reason.

Impatient as always, I skimmed the introduction and got the gist — positive thinking. Then I finished the first chapter, took a deep breath, and had a totally different take than the famous title suggested.

In 1908, a 20-something Napoleon Hill was a young journalist who landed an interview with industrialist Andrew Carnegie, one of the wealthiest men in the world. Carnegie encouraged Hill to research hundreds of successful men and women in hopes of discovering common threads for success. Over the next twenty years, Hill ended up studying everyone from Edison to Rockefeller. Carnegie believed the most common thread of these highly successful people was their mindset.

Then in 1928, Hill and Carnegie co-published their findings under the title, Laws of Success. Ten years later, Hill published Think and Grow Rich, one of the all-time bestselling self-help books. In time, Hill’s name became synonymous with his trademark expression, “What the mind of man can conceive and believe, it can achieve.” But there was much more than positive-thinking lessons in his book.

Hill’s first story in Think and Grow Rich sets up his basic premise. He tells the tale of Edwin Barnes, a poor and uneducated man who has the gumption to hop a train and show up cold at Thomas Edison’s laboratory, asking for an apprenticeship. Barnes wants to learn from the master inventor in hopes of someday working with Edison, not just for him. Well, someday comes when the Edison Dictating Machine is sitting on the shelf collecting dust. Barnes is positive he can sell the machine and persuades Edison to let him take it to market. Barnes ends up being so successful selling the machine, Edison grants Barnes nationwide distribution and Barnes ends up making millions.

Moral of The Story

A man with no money or education was able to

think and grow rich thanks to a burning desire and positive mental attitude.

A Bigger Lesson

My take on the Barnes story leads me to believe Hill’s book should have been titled, Carpe Diem and Grow Rich. While positive-thinking is widely accepted as the secret to Think and Grow Rich, I’m convinced that Barnes’s #1 success principle was being a man of action. Psychologists and fans of Hill may debate this. But what really comes first? Thought or action? Chicken or egg? Who’s likely to be more successful — action-oriented people or positive-thinking couch potatoes?

In Think and Grow Rich, the action principles are baked right in: make decisions, avoid procrastination, use your imagination, and acquire specialized knowledge. Moreover, I’m certain Hill would agree that positive thinking isn’t a light switch we flick on at will. We all have doubts and life throws curve balls. It’s when they’re not positive that successful people still show up and amazing things still happen.

In spite of my own doubts, I bought my first property at 19, in part because I had desire, but in practice because I watched what successful investors were doing every day — they showed up when others didn’t. They made offers, looked for solutions, and wrote daily thank-you notes. That persistence is how they hit goals and got the best deals.

Yes, my suggestion to change the title of an all-time bestseller was something of a rant by a silly teenager. I’m also sure Carpe Diem and Grow Rich was in the back of my mind on days I didn’t feel like showing up.

Thanks, Mr. Hill. You truly were my first business mentor.

 

This blog is from a chapter section in…

The 4 Essentials of Entrepreneurial Thinking

Essential 2 – Strategy 7 – Hardcore Core Execution