Business Book Summaries

The world of business summarized.
Summaries of the 40 best business books
Business Book Summaries get up to speed on critical business knowledge in a flash! We summarize the latest and
most relevant business books, and we compress the information from each title into just five pages. Learn the key
points of a book in just 10 minutes. From finance and management to sales and careers, you'll never miss a trend.
Contents:
1- 22 Keys to Sales Success _ James M
2- Contagious _ Jonah Berger
3- Dealstorming _ Tim Sanders
4- Designing World-Class E-Learning _ Roger C. Schank, Ph
5- Emotional Intelligence _ Daniel Goleman
6- Focus _ Daniel Goleman
7- Good to Great _ Jim Collins
8- Hooked _ Nir Eyal
9- How To Sell When Nobody's Buying Summary
10- How to Think Like a CEO Summary _ Debra A
11- Insight Selling Summary _ Michael Harris
12- Little Red Book of Selling Summary _ Jeffrey Gitomer
13- Leading the Learning Revolution Summary _ Jeff Cobb
14- Managing the Millennials Summary _ Chip Espinoza et al
15- Mastering MOOCs Summary _ Karl Ulrich
16- Mastering the Complex Sale Summary _ Jeff Thull
17- Mindset AudioBook _ Carol Dweck
18- Pre-Suasion Summary _ Robert Cialdini
19- Proactive Sales Management Summary _ William Skip Miller
20- Sales Management. Simplified
21- Selling 101 Zig Ziglar
22- Selling to Big Companies Summary _ Jill Konrath
23- Selling with Emotional Intelligence Summary _ Mitch Anthony
24- Stephen Covey 8th Habit
25- The 7 Habits of Highly Effective People Summary _ Stephen R
26- The 25 Sales Habits of Highly Successful Salespeople Summary _ Stephan Schiffman 27-
The 100-Year Life Summary _ Lynda Gratton and Andrew Scott
28- The Effective Executive Summary _ Peter F
29- The Hard Thing About Hard Things Summary _ Ben Horowitz
30- The One Minute Negotiator Summary _ Don Hutson and George Lucas
31- The Power of Habit Summary _ Charles Duhigg
32- The Psychology of Selling Summary _ Brian Tracy
33- The Wisdom of Failure Summary _ Laurence G
34- Thinking Fast and Slow AudioBook _ Daniel Kahneman
35- True North Book Summary - PDF Download _ Bill George
36- What They Don’t Teach You at Harvard Business School Summary _ Mark H
37- Working With Emotional Intelligence PDF _ Daniel Goleman
38- 15 Secrets Successful People Know About Time Management Summary _ Kevin Kruse
39- The Happiness Industry Summary _ William Davies
40- The Black Swan Book _ Nassim Nicholas Taleb
12/19/2016 22 Keys to Sales Success Summary | James M. Benson and Paul Karasik
Firas Horany English
Book
22 Keys to Sales Success Selling financial services is not about
How to Make It Big in Financial Services product benefits; it`s about long-
term, mutually beneficial client
James M. Benson and Paul Karasik
relationships.
Bloomberg Press, 2004
Buy the book
Rating  Recommendation
8
9 Applicability Selling is not about pushing products any more. Pitches or sales gimmicks do not
persuade the contemporary cynical, savvy consumer. In today’s world, successful
5 Innovation
financial services and product sales professionals must build mutually beneficial
7 Style relationships with their clients based on trust and respect. Authors James M.
Benson and Paul Karasik use their experience and accomplishments in finance
and insurance to identify 22 key sales strategies that anyone can use, including
sales professionals in other industries. Much of the advice, for good or ill, is not
specific to the area of financial services. Each chapter explains a triedandtrue,
applicable sales strategy in an easytounderstand format. You’ve heard some of
these strategies before, but others will provide new fuel to energize your approach
to sales. Each strategy makes sense and getAbstract.com recommends this book
to everyone who sells financial products, whether you are a weathered sales
veteran or a novice who is still finding your way.
In this summary, you will learn

• How to use 22 different strategies to sell financial products and services
• How to focus your efforts on building relationships rather than pitching
products
• How to change customers into clients
Take-Aways
• Traditional sales methods no longer work with financial products and
services.
• The only way to be successful is to build relationships with your clients.
• A customer will buy from you once; a client is someone with whom you have
a relationship that will be mutually beneficial over time.
• Get to know your clients and let them get to know, respect and trust you.
• When you totally believe in your product, your clients will respond
emotionally.
• People make purchases based on emotions and supported by logic.
001
• Provide prospects with reasons to say yes, but walk away from situations
where the sale is unattainable.
• Develop marketing systems that reflect your strengths and personality. Use
what works repeatedly, fine tuning it every so often.
• Generate additional business from existing clients by thinking of new
opportunities to serve them. Don’t hesitate to ask for referrals.
• Be your own coach, motivator and manager. Avoid burnout by breaking
your old patterns and replacing them with positive new activities.
Summary
The Inspiration
Today’s financial services industry has little in common with the financial services
industry of years past. Everything has changed, from the way financial products
and services are distributed to how they are marketed and sold. Traditional selling
“Today, establishing techniques, which were oriented toward product benefits, are mostly obsolete.
trust and building rela The only way to succeed in today’s financial arena is to build client relationships
tionships with clients that are based on trust. You can use 22 specific tactics to succeed as a financial
have become not only a services salesperson in this environment. They are:
priority, but a necessity
for longterm marketing
Key 1: "Take Control of the Sale"
success.”
Do not let a prospect’s fear or assertiveness influence the direction and flow of
your selling process. Anticipate the prospect’s preoccupation with receiving a
personal payoff. Although your sale will not rest upon the features and benefits of
your products, those factors are important. But to close deals, you want to control
the prospect’s emotional reactions. Fear is the emotion that most often blocks
sales. People are reluctant to commit to a decision because they are afraid to
initiate change, give up control or make mistakes.
Key 2: "Focus on Clients, Not Compensation"

A world of difference separates a "client" from a "customer." A customer is
someone who buys a product or service, but who does not represent any potential
“If you can find out what
for developing future sales. A client, however, is someone with whom you build an
drives your prospects
enduring relationship that generates business. By adding one new client per week
what their needs, fears
to your business, you can create a practice that will flourish over time. Remember,
and concerns are, and
what’s important to a customer might provide a quick sale, but you can rely on your clients for long
them you will be term gain.
creating a relationship,
as opposed to making a Key 3: "Position with Mission"
product pitch.” Many easily accessible and similar financial products are available, so it is terribly
difficult to differentiate your offerings based on product benefits alone. Yet,
positioning your financial services practice as unique is very important. Begin by
creating a mission statement that succinctly explains the compelling reasons why
a client would prefer to conduct business with you. Publish your mission
statement on your Web site and use it in all of your communications. Develop a
"oneminute positioning statement" that is a concise, brief explanation of what
you do.
Key 4: "Go Long and Deep"

Choose a target market and then focus your marketing efforts on that sector. Look
“The secret to having a for a market that is mainly untapped, is accessible, and has enough potential
true competitive edge in clients and resources. Do everything possible to get involved with that market.
today’s marketplace is to Become a member of a relevant professional association, write articles for its
exceed client expecta
tions.”
002
publications, speak at its group meetings and host client events. Consider setting
up your own "client advisory board" made up of members of your target market
and nurture it as a resource for guidance and referrals.
Key 5: "You’ve Got to Believe"

You must believe in your products with every fiber of your being. When you are
passionate about your products, your prospects will respond and you will connect.
Be sure to emphasize the emotional benefits of your merchandise. In other words,
you aren’t selling life insurance; you’re protecting a person’s family. Remember,
“Customers have no logic doesn’t drive sales, but emotions do.
loyalty because there is
no relationship.”
Key 6: "Don’t Be Afraid to Walk Away"
To achieve a high rate of sales, using your time wisely is crucial. Save time by
qualifying or identifying prospects who truly need your services and who have the
ability to make purchases. Qualify prospects by recognizing those who have used
your products previously. Select decision makers who are ready to move forward.
Most of all, if you realize you are wasting valuable time in a bad situation, turn
and walk away.
Key 7: "Give Them Something to Say ’Yes’ To"

Include "easy yes questions" (EYQ) in every proposal to move the sales process
forward positively. Examples of EYQ include: "Do you want me to reduce your
“You can give your
taxes?", "Do you want to contribute to your child’s education?" and "Do you want
income a real boost by
the security of guaranteed income in your later years?"The "sixpoint proposal
engaging in a simple yet
system" is a wonderful tool for producing purchase agreements. This technique
dynamic process:
creating plans to do enables you to distill complex ideas about your financial product into an easily
more business with digestible format. Gather the information to explain these six points: "the
every client.” recommendation, the reasons, the results, the cost, the alternatives and the
timetable." Now, fit this data on one sheet of paper.
Key 8: "Develop a Marketing Rhythm"

Begin by finding a marketing style you are comfortable with that works for your
clients. Your method should include a personalized approach for attracting high
quality business, performing followup and maintaining your practice. Once you
have good systems in place, use them repeatedly, finetuning them now and then
to make improvements.
Key 9: "Follow the 602020 Rule"

“You make yourself a Every salesperson experiences plateaus and slumps. That’s when the "602020
referral magnet when Rule" comes in handy. Continue to use your current sales systems 60% of the
you spend your days time. Spend another 20% of your time conducting research about relevant new
helping your clients with developments in technology, marketing and sales techniques. Then, use the
referrals.” remaining 20% of your time applying and testing the new ideas and concepts
you’ve learned.
Key 10: "Automate Your Sales Process"

Use the latest technology to organize every aspect of your sales systems to
enhance your productivity. Many wonderful and relatively inexpensive "contact
management software programs" are now available. Select one you like and use it
to record client information, track sales activity, retain notes of conversations and
generate phone call reminders.
Key 11: "Open the Johari Window"

“Easy access and the
similarity of financial The "Johari Window" is a business model that illustrates the dynamics of
products and services productive, cohesive relationships. It calls for, first, opening yourself up to your
have leveled the playing prospects by sharing your thoughts, experiences and feelings. Then, it says, show
field.” curiosity about your clients and listen when they open up to you. Apply these
basic principles to build longterm relationships that translate into more sales and
increased client retention.
003
Key 12: "Market Yourself as the Expert"

You are not just a salesperson hawking financial products and services. You are
offering knowledge and experience that is extremely valuable to your clients.
When you provide solutions based on your expertise, you are engaging in
"consultative selling." Be proactive about demonstrating your expertise by writing
for trade publications or newspapers, establishing yourself as a media source,
sending press releases to related media outlets and producing a brochure that
highlights your successes.
“Today, only WalMart
sells on price effectively.” Key 13: "Generate New Business with Existing Clients"
Your existing clients are your very best source for additional income. Therefore, it
is meaningful and important to evaluate each client’s needs periodically and to
ascertain new ways to assist each individual. Once you identify an opportunity,
create a marketing plan to present to your client. Remember, ideally, you will
generate 80% of your sales from clients who already trust you with their business.
Key 14: "Master the Art of Communication"

To be an effective financial salesperson, you must become proficient in three basic
communication skills: "questioning, listening and presenting." Unlike other types
of sales that rely on product demonstrations, financial service sales depend on
“Time is irreplaceable, sophisticated communication methods. Learn how to ask the right questions and
and it is your most then pay close attention to the answers. Follow the "80/20 Rule:" allow the
valuable resource. Don’t prospect to talk for 80% of your time together.
throw it away on
insincere, disrespectful Key 15: "Demand Objections"
prospects.”
Objections are actually good. They prove that your clients are participating in the
sales process. Objections help you identify the concerns that keep clients from
buying. Anticipating objections and addressing them early in the sales process is
critical. It’s even more important to ask questions that expose any pending
objections so you can get the client to discuss them. Listen carefully to your
clients’ concerns, do not dispute their viewpoints and have prepared responses
ready.
Key 16: "Always Be Closing"

Approach every sale with a closing mindset. As stressed in the fifth key, believe in
yourself and your product. When you spend more of your time building
“It’s up to you to relationships, you will spend less time asking for orders. Closing deals becomes
motivate yourself. No simply a matter of timing. If you have built relationships on the twin foundations
sales manager or moti
of trust and respect, closings will take care of themselves.
vational speaker can
motivate you.”
Key 17: "Be Your Own Sales Manager"
Seek methods and techniques that will help you to improve your bottom line.
Maintain an attitude of inquisitiveness and remain open to new ideas and
approaches. "Monitor, measure and evaluate" the results you obtain from every
aspect of your sales process.
Key 18: "Cultivate Your Referrals"

Referrals are the most effective way to generate new business. Many financial
sales professionals hesitate to ask for referrals because they are afraid that they
will appear greedy or, perhaps, impose on a client. But more than half of financial
“It’s a heck of a lot easier services business originates from referrals. To gain referrals, make sure your work
to make money by is of the highest caliber. Whenever possible, refer your friends and associates to
having what people your clients. Lastly, make sure every referral is a "hot referral." A hot referral
want than by selling differs from a cold call in that your client speaks to the prospect before you initiate
people what you have.” contact.
Key 19: "Create Your Compelling Vision"
004
Identify and clarify your principles, standards and deep beliefs. Then, use these
values as a roadmap to guide your professional life. This vision will keep you on
track toward fulfilling your personal and business goals. Use this compelling
vision as a source of motivation and inspiration that you can draw from every day.
Key 20: "Close More Sales with Scripting"

“Selling is not the place Scripts help you remain consistent and organize your selling process. Scripts
to get your needs met. It provide you with the "magic words" you need to close. The three elements of
is the place for you to
scripting are "memorized modules, flexibility and personalization." Some sales
meet the needs of your
professionals are reluctant to use scripts because they feel they won’t sound
potential client and for
spontaneous. But the majority of sales experts agree that scripts are liberating
you to then go to the
bank with the results.” because you don’t have to try out a new pitch with every new prospect.
Key 21: "Make Them Love You"

Today, the "featuresbenefit model" of selling is a thing of the past. And, you can’t
compete on service, because consumers now have a high expectation of excellent
service anyway. Therefore, you consistently must deliver more than customers
expect, before the sale and afterward. Review your client list and develop "value
plans" tailored to each person. Loyal clients are clients who love you and relish the
extra attention you give them.
Key 22: "Energize Your Success"

“Sales are made for Selling requires extraordinary amounts of time and energy, so burnout is an
emotional reasons and occupational hazard. Avoid it by being aware of your energy level and taking
justified with logic.” action when it becomes depleted. Seek sources of positive energy. Break old
patterns and replace them with positive fresh activities. You might consider a
range of new possibilities, from yoga, meditation and fitness training, to classes,
singing lessons or just watching the sunset.
About the Authors

James M. Benson sold financial products and services for many years. He is president and CEO of the John
Hancock Life Insurance Company, where he formerly headed the sales and marketing division. Management
consultant Paul Karasik trains financial professionals. His previous books include Sweet Persuasion and How
to Market to HighNetWorth Households. He is a columnist for On Wall Street magazine.
This document is restricted to the personal use of Firas Horany ([email protected])
005
Book
Contagious
Provoke buzz about your product or
Why Things Catch On idea by generating word of mouth
Jonah Berger (and not just tweets).
Simon & Schuster, 2013
Buy the book
Recommendation
If you want your product, service or cause to become the talk of the town – or the
talk of the Internet – don’t rely on advertising. People trust their friends’ and
acquaintances’ opinions far more than paid promotions. The challenge is getting
your offering on the tip of everyone’s tongue. Marketer Jonah Berger explains why
some topics blaze their way around the world while others are ignored. His
solutions go beyond social media; as he says, Twitter, Tumblr and Facebook are
mere tools. If you can forgive him for inventing unnecessary extra jargon (like
“inner remarkability”), Berger will show you how to turn your product or cause
into a topic of public conversation, a subject that everyone wants to discuss.
getAbstract thinks this entertaining take on fueling the buzz will intrigue
marketers, advertisers and sociologists alike.

• What factors cause people to talk about and talk up products, ideas and
services
• What six steps you can take to make your product, cause or idea catch on
• How you can narrate stories that cause people to want spread the word
about your product
Take-Aways
• To promote your product, service or idea, generate “social contagion” –
voluntary, widespread word of mouth.
• Every day, people have many conversations about products and brands,
93% of which happen offline.
• Six “principles of contagion” affect whether people talk about your product:
• First, use “social currency” by making people feel influential when they
discuss it.
• Second, remind people of your product, service, cause or idea with
“triggers.” These hints are more effective when they are familiar.
• Third, “emotion,” whether positive or negative, can incite people to action.
• Fourth, go “public”; make sure your activities and products are highly
visible.
006
12/18/2016 Contagious Summary | Jonah Berger | PDF Download
• Fifth, provide information of “practical value” to prompt people to spread

the word.
• Sixth, “stories” are the best and most effective way to convey information,
because people think in narratives.
• Apply these principles to promote almost any product or endeavor at a low
cost.
Summary
Hot or Not?
When a product, idea or topic becomes the newest hot talking point, it has gained
“social contagion”; this is a good thing, and it can happen spontaneously. For
example, a new house of worship can naturally experience a boom of interest
“Sharing extraordinary, within a community, or a pressing political cause can inspire people to get
novel, or entertaining involved. But if you’re a marketer seeking ways to make your product, service or
stories or ads makes
idea catch on, that fire can be much harder to ignite. Products can become trendy
people seem more extra
if they are superior to their competitors, if they cost less, or if their ads are more
ordinary, novel and en
clever and effective. But those elements alone can’t explain why some ideas and
tertaining.”
items become contagious and others don’t.
Word of mouth – that magic surge of communication and buzz that happens
when people talk with their friends, family and associates about products or
brands – provides much more effective promotion than even the best or most
expensive advertisement. Social influence is more convincing than a paid
testimonial and it benefits from being more targeted. Usually, folks who discover
a product and like it will tell other people who they think will appreciate it.
Word of mouth is ubiquitous and affordable: You don’t even need a computer or
“Virality is most web connection to participate. Since 93% of word of mouth actually happens
valuable when the brand offline, don’t assume that using social media is an end unto itself. “Facebook and
or product benefit is Twitter are technologies, not strategies.”
integral to the story –
when it’s woven so Your goal is to develop “contagious content” – viral ideas and topics that
deeply into the narrative proliferate no matter who distributes them. You must understand why people talk
that people can’t tell the about ideas, products or causes and how to draw that conversation to your
story without product. To do so, put the following six “principles of contagiousness” (which
mentioning it.” follow the acronym “STEPPS”) into action:
1. “Social Currency”
A product, service, cause or idea becomes social currency when talking about it
makes people feel important or knowledgeable. The desire to scope out some
great new restaurant before everyone else discovers it is a good example. Currency
can apply to interesting, fun facts, too, if they possess “inner remarkability,” a
quality that prompts consumers to share information that they believe reflects
well on them.
“People talk about Think about the ways in which your product may possess inner remarkability.
Cheerios more than What aspect or feature distinguishes it from the competition? How can you break
Disney World. The “a pattern people have come to expect?” JetBlue, for example, offers spacious
reason? Triggers.” seating, a variety of snacks and individual video screens in an effort to provide
perks that flyers don’t expect but will certainly remember.
Engage your customers or clients in a game, such as a mileage program, to keep

them coming back. “Game mechanics” intrigue customers and inspire them to
announce their winnings to friends who might then also become your clients.
Accumulating frequentflier miles or flashing an exclusive credit card earned with
007
points makes customers feel special; such games and competitions carry social
currency. Customers will take to the web to discuss their tactics and victories.
“By acting as reminders, Every conversation they have further promotes your product.
triggers not only get
people talking, they keep 2. “Triggers”
them talking. Top of Triggers remind people about products, services or ideas and prompt
mind means tip of conversation about them. You may think that consumers would talk more about,
tongue.” say, an exciting theme park than about a breakfast cereal, but no. Folks eat
breakfast every day; they go to theme parks only now and then. Your product
might be familiar or unexciting, but consumers will still discuss it and want to
hear what others have to say.
People talk about products, brands and organizations frequently – on average,

more than 16 times daily. Given that behavior, how do certain products end up
being hotly discussed? To find out, marketers must dig deep and research what
happens when wordofmouth conversations take place. Do they occur only
immediately after a trigger, or do they continue on an enduring basis? “Immediate
word of mouth” happens when you use a product or have a particular experience.
“Triggers are like little
environmental “Ongoing word of mouth” ensues over time. Using a product may generate
reminders for related immediate word of mouth, but that won’t necessarily inspire the desirable
concepts and ideas.” ongoing buzz.
Triggers can arise unexpectedly, often in the environment surrounding your

product or idea. When researchers asked voters to approve a motion to raise their
sales tax from 5.0% to 5.6% to support local schools, participants were more likely
to approve it if their polling station was in a public school. Such associations are
the most potent tool in breeding word of mouth. Familiarity helps. For instance,
Budweiser’s “Wassup?” campaign was a huge success because so many people
adopted the expression, a slurred version of “What’s up?” Sales of Kit Kat
chocolate wafer bars rose when an ad paired Kit Kats with a cup of coffee. To
evaluate the potential effectiveness of a trigger, consider these factors:
“Just like inspiring
things, or those that • How often does the trigger happen?
make us angry, funny
• How strong is the link between the trigger and your product?
content is shared
because amusement is a • Is the trigger part of your product’s normal milieu?
higharousal emotion.” • What is your geographic location? For example, an innovative cheesesteak
campaign might not succeed outside Philadelphia.
• What time of year is it? Because of Halloween, orangecolored products sell
better in October than in December.
3. “Emotion”
People talk about subjects that stir their feelings. Topics go viral when they strike
a chord and, subsequently, when people discuss them facetoface or via social
media. For example, a scientific photograph of a cough published in The New
York Times became one of the most popular pieces the newspaper ever published
“Sure, you can make
in terms of how often readers forwarded it via email. People instinctively share
your narrative funny,
information they find amazing or awesome.
surprising or entertain
ing. But if people don’t
A variety of emotions can cause people to push a topic to viral status. While
connect the content back
amazement and awe are positive emotions, negative emotions such as anger and
to you, it’s not going to
anxiety also motivate people to talk. A “higharousal” emotion such as amusement
help you very much.”
provides an important impetus, but paradoxically feeling happy (or sad, for that
matter) tends to dampen the impulse to share. While advertisers generally try not
to evoke negative feelings, in certain instances, negative emotions can be effective
– for example, in medical messages such as campaigns that encourage people to
quit smoking. Whatever type of feeling you evoke, emotions usually inspire action.
008
4. “Public”
This principle concerns “observability.” People who are apt to follow others’
“The mere fact that recommendations and tastes do so more frequently when others’ preferences are
something isn’t readily visible. Steve Jobs understood this theory. He decided that the logo on an Apple
available can make
laptop should not face the user, but should face the people around the user. That
people value it more and
visibility spurred nonApple users to consider buying Apple when they saw the
tell others to capitalize
logo. In psychology, this phenomenon is called “social proof.” People are
on the social currency of
knowing about it or inundated with information. They seek out others’ choices to guide them when
having it.” they make decisions. To achieve high observability:
• “Make the private public” – Turn your cause into an item or event that
catches people’s attention and inspires dialogue. For instance, a prostate
cancer organization asks cleanshaven men to grow mustaches every
November to increase awareness.
• “Design ideas that advertise themselves” – Incorporate a commercial
into your brand. Hotmail added a tagline touting its services to every email
message.
• Employ “behavioral residue” – Choose a campaign or tactic with a long
shelf life. The Livestrong Foundation decided that bracelets would create
“It doesn’t require a longerlasting cancer awareness than a singleday bike race featuring Lance
costly ad agency or Armstrong. Even the negative publicity Armstrong received for doping has
millions of dollars in not turned the public away from the foundation or its famous bracelets. The
focus groups to get foundation showed marketing savvy by emphasizing that its spokesman’s
people to feel emotion.”
behavior had not compromised its mission to fight cancer. This provided
another narrative in Livestrong’s already potent arsenal of stories.
When you want to change negative behavior, you incur certain risks by trying to
make the private public. The “Just Say No” antidrug campaign failed because it
raised young people’s awareness that other teens were using drugs. This resulted
in peer pressure and offered social proof of peer drug use. To avoid this
unintended consequence if you campaign against a harmful behavior, emphasize a
positive replacement, something beneficial your listeners could do instead.
“Making something 5. “Practical Value”

more observable makes Information with practical applicability spreads easily by word of mouth because
it easier to imitate.” people enjoy helping their friends. Offer them “news others can use.” This
practical information can be simple tips, such as cooking advice, and can often
involve ways to determine whether a price is “a good deal.” When individuals
judge bargains, they work from a mental “reference point.” For example, senior
citizens who remember when movie tickets cost under $1 are less tolerant of
today’s prices than teens who grew up buying movie tickets that cost more than
$10. Retailers know that customers rely on reference points, so merchants
frequently post a nonsale price next to a discounted price in their advertising to
benefit from that contrast.
“Observability has a “Diminishing sensitivity” also can influence whether a customer perceives a good
huge impact on whether deal. A discount on an inexpensive item seems more impressive than the same
products and ideas catch discount on a pricey item. Similarly, on lowerpriced items, discounts stated in
on.” percentages appear more advantageous, while on bigticket items, discounts
stated in dollars work better. This is called the “Rule of 100”: If your product sells
for less than $100, state your sale price in terms of the percentage reduction. If it’s
more than $100, discount the price in dollars. Both tactics will encourage people
to buy your product and to tell their friends about it.
6. “Stories”
To get consumers to notice and talk about your product, service or cause, put it in
a story. Stories capture individuals’ interest and influence listeners more than
advertising. When communicating naturally, people don’t exchange data as much
as they share tales. For example, if you find a great bargain, you will probably
“Almost every product
or idea imaginable has describe your entire consumer experience when you recommend the deal to your
friends. That’s because people tend to “think in terms of narratives.” People
009
something useful about readily recall stories, and those who hear interesting narratives rarely attempt to
it.” contradict them, though that is often a person’s instinctive reaction to assertions
made in paid marketing campaigns.
When you create a story to increase interest in your product, make sure it’s
logical. For example, the makers of Dove skin products benefited from a video
that showed how unrealistic professional models look when they are costumed,
made up, coiffed and airbrushed. The video underscored a preference for natural,
clean skin. Strive to give your product, service or idea “valuable virality” – that is,
a core significance that generates narrative meaning.
Stories should be unadorned. As people transmit stories to one another, they tend
“People don’t think in to omit superfluous details, retain the vital ones and put a heightened spin on
terms of information. them. Make your stories amusing and creative. Be sure your listeners can grasp
They think in terms of them and associate them with you.
narratives. But while
people focus on the story You can put the six STEPPS to work for your product, service, cause or idea
itself, information comes without spending a lot of money or hiring the world’s best ad agency. If your
along for the ride.” brand makes potential consumers feel important, appears frequently in their
environments, evokes feelings, is clearly visible, is useful and helpful, and carries
a good story, it will become contagious.
About the Author

Jonah Berger, a business writer, teaches marketing at the University of Pennsylvania’s Wharton School of
Business.
010
Book
Dealstorming
“Dealstorm” your way to sales
The Secret Weapon That Can Solve Your Toughest Sales success by building the right team
Challenges and deploying it strategically.
Tim Sanders
Portfolio, 2016
Buy the book
Recommendation
Today, only 40% of sales representatives meet their quotas. Coming to the rescue,
sales veteran Tim Sanders outlines a direct approach to overcoming hurdles in
large businesstobusiness sales. He presents his sevenstep “dealstorming”
process in clear chapters filled with explanatory anecdotes. The process of
dealstorming requires assembling a focused team from across your company’s
departments. Sanders positions dealstorming as the best method for closing
stalled sales. He illustrates his system with diagrams and illuminates each step
with case studies drawn from his sales leadership experience. Dealstorming offers
an intriguing approach to overcoming sales problems strategically. getAbstract
recommends this solid guide to B2B sales reps and managers looking to overcome
that nagging, lagging sale.

• How “dealstorming” breaks through sales obstacles
• How to organize a businesstobusiness “dealstorm” team
• How to manage the dealstorm process from beginning to end
Take-Aways
• “Dealstorming” is a focused approach that uses a crossdepartment team to
move a stalled businesstobusiness sale forward.
• With 40% of sales reps unable to meet their quotas, making sales is harder
than ever.
• Today, most deals face several challenges: multiple decision makers,
complex technology systems and an influx of information that complicates
clients’ expectations.
• The seven major steps of the dealstorming process are “qualify, organize,
prepare, convene, execute, analyze” and “report.”
• A sale moves through four stages: “contact, conceive, convince and
contract.”
• The size of a “dealstorm” team depends on the “value” and “difficulty” of the
sale.
011
12/18/2016 Dealstorming Summary | Tim Sanders | PDF Download
• The team has a “problem owner, sponsor, resources” and “information

master.”
• To help your team embrace different ways of thinking, suggest personas for
members to adopt, such as “the hacker, the chef and the artist.”
• You might stop a deal for four reasons: It’s a “bad fit,” you lack a unique
offer, chasing the deal is a waste of time or continued contact might damage
your client relationship.
• Moving a deal forward requires the leader to “confirm, verify” and
“implement.”
Summary
“Dealstorming”
Despite a sales representative’s best efforts, a potential deal can hit a roadblock
that prevents it from coming to a successful conclusion. One cure is dealstorming,
a collaborativebased approach to businesstobusiness (B2B) selling. In
“Dealstorming is a dealstorming, a crossdepartment team follows a stepbystep, “linear process
repeatable process that requiring discipline”
brings a collection of
minds together around a Brainstorming produces a lot of ideas, but unlike dealstorming it lacks a
sales challenge to move deliberative process for determining if the ideas are viable. Dealstorming brings
it forward.” people together from a company’s different units to find creative, practical
solutions to a blocked sale. The participants in a dealstorm session share the same
sales goal and can offer suggestions for advancing the sales process. A dealstorm
requires a major investment of time and resources, so companies should turn to
this tactic only when other B2B sales options don’t work.
Why Dealstorming Works

The dealstorm helps people who don’t usually deal with selling develop a stake in
a sale’s success. A salesperson may not be able to find the hidden key to success,
but a team probably can. A dealstorm often discovers a sales innovation that other
sales teams can use in similar situations.
“We should take
advantage of the Today, the B2B sales process is far more difficult than it was. Previously, most
collective intelligence of
sales depended on one client decision maker. Today, most purchases require
our coworkers to figure
agreement from many people at varying levels of a customer’s firm. Most
out how to get the must
enterprise sales now involve five client decision makers. Completing a deal often
do deal done.”
requires navigating a client’s internal blockades. A company’s policies may
complicate sales negotiations. Resistance from other departments in the client
firm can make it harder to meet prospects’ requests or needs. Concluding a sale
requires solving these issues.
Information technology enables prospective buyers to gather their own knowledge

about your industry’s available products and about your competitors. Clients
research prices before speaking to your salespeople. Many prospects already know
what they want and what they think it should cost. Yet, the abundance of
knowledge now available also can help in your sales planning. For example,
purchasing trends reveal valuable data about what your prospects need from you.
“To really excel with
dealstorming, you need
to build a team around “Four Levels of Each Sale”
highvalue sales oppor Each B2B sale moves through four stages: “contact, conceive, convince and
tunities while at the contract.” Contact is the stage of meeting and networking with people at the
same time managing the prospect company. Determine whether each contact person from the client
human dynamics.” company can help by learning about his or her “credibility, connections, company
012
intelligence and motivation.” Identify the initial decision maker you want to
reach. Listen to what prospects say about their business’s strengths and
weaknesses, learn from them, and target your approach accordingly.
Conception, the second step, requires understanding your product and the
problems your prospects seek to solve. Create a sales pitch that matches your
product with the solution they need. The third step, convincing, begins with
“Inspire ongoing loyalty explaining how your product solves their problem. Your product must resolve
by being transparent their problem and offer a high return in terms of the client’s time, procedures and
about your business deliverables. However, most prospects are wary of innovative products, so you
goals and vision for the may need to identify factors that could persuade clients to make a commitment.
group.” Other teams from various departments (accounting, IT, legal) in your firm and in
the client company may insert themselves in the sales process. Your
persuasiveness during the convincing stage may not influence these other
decision makers. Use dealstorming to find solutions that counteract their
negativity or that manage a change of staff or a takeover.
When to Stop a Sale

The sales manager and the dealstorm team should be aware of the problems a rep
is facing when a potential sale seems to be breaking down. Unless the team can
find quick solutions, reps must stop pitching the client. Managers should halt the
sales process if one of four situations applies:
Sales “competence is a
combination of product, 1. Bad fit – The prospect doesn’t see an alignment and requests no further
prospect and process contact.
knowledge, and core
skills, such as communi 2. No unique offer – If your product doesn’t offer valuable differentiation,
cation, financial, convincing prospects is hard. Multiple meetings make no progress; nothing
technical and interper indicates a positive shift.
sonal.” 3. Waste of time – Sometimes a sales manager must intervene when a rep
doesn’t see that continued effort on a stubborn account detracts from
moving forward on other sales.
4. Potential damage – Withdraw immediately if continued contact might
undermine the client relationship or other relationships between the two
businesses.
The Dealstorm Team

The size of a dealstorm team depends on the “value” and “difficulty” of the sale.
Grade the deal’s value on a scale of one to ten by levels of revenue, brand presence
“Act on facts; research and “market penetration.” Grade the deal’s difficulty on the same scale, based on
hunches. It’s very easy the challenges the sale faces on a personal level, the number of decision makers,
for the discussion to the internal obstacles, and so forth. The number of steps to completing the sale
move toward gut indicates how many challenges you’ll face.
instincts, rules of thumb
and anecdotal Multiply the two scores to get a “resource” score to dictate your team’s optimal
experiences. Without this size. For example, a value of seven and a difficulty of five equal a resource score of
rule, the debate often 35. Scores up to 30 call for a two or threeperson dealstorm team, including a
ends up with ‘trust me’ sales rep and manager. A score of 30 to 49 requires a four to fiveperson team. A
as the trump card.” score of 50 to 69 requires a team of six to nine people, and anything more than
70 demands a 10 to 12person dealstorm team. Participants in a dealstorm team
serve in one of four roles:
1. “Problem owner” – This is usually the sales rep who identified the
challenge and asked for help. The problem owner leads the team by
identifying potential members (including recruits to fill the other three
roles), producing pre and postmeeting notes, overseeing meetings,
verifying information and ideas, and determining action steps.
2. “Sponsor” – This is usually the sales manager who supports the problem
owner throughout the decisionmaking process and then supports the
“Dealstorming not only
dealstorm inside various units in the company. The manager’s position of
delivers sales results and
013
improved delivery later; authority helps employees in other sectors understand the value of the
it’s a learning platform dealstorm.
for every person who 3. “Resources” – Everyone on the dealstorm team provides specialized
participates in the
knowledge about the client or the sale within specific fields. Members of
process.”
tech departments, R&D or marketing can offer innovative thinking about a
prospect’s concerns. To recruit resource people, explain the dealstorm and
how it relates to your firm’s overall success.
4. “Information master”– The team member who takes this role will
record, organize and report the information produced in dealstorm
meetings.
Role Play
To break through creative roadblocks and habitual thinking, team members can
assume different roleplaying personalities during discussions. Three different
“Collaboration experts characters can help teams break through to new ideas. The “hacker” observes the
recommend periodically problem from various angles to find points of weakness where opportunities exist.
infusing new members A hacker could overcome resistance to a sales call by using social media to engage
into the group to
the prospect. Liking and commenting authentically on a prospect’s posts on
revitalize it and spur
LinkedIn and other sites can build relationships and improve sales outcomes.
new thinking.”
The “chef” persona mixes and matches ingredients to produce a successful dish.
Think about what you already know about the situation – review your notes,
contacts, information, prospect needs and problems – and compare that list with
the ingredients your product offers the client. Help your firm’s departments
provide other ingredients. The “artist” persona uses a “show me, don’t tell me”
approach. Sometimes a “visuallybased analogy” can clarify an offer. For example,
a real estate agency had trouble renting beautiful office spaces until an agent
compared the spaces to cars: Getting a cargo van is cheaper, but doesn’t make the
statement of a BMW X5 SUV.
“Consensus isn’t about

everyone loving the idea Dealstorm’s Seven Steps
but instead making sure The dealstorm starts when the sales rep identifies a sales opportunity or problem
that everyone can live and requests assistance. The seven major steps for an effective dealstorm are:
with it later.”
1. “Qualify”– The sales manager decides a sales challenge needs a dealstorm
team after the sales team has tried all other sales support options.
2. “Organize” – Assess what knowledge and skills you need. Recruit from
across the company to assemble your dealstorm team.
3. “Prepare”– The dealstorm owner manages all preparatory materials,
including a premeeting “deal brief” containing all relevant information on
the client and the challenge.
4. “Convene”– Hold dealstorm meetings to initiate the process. “Regroup” to
review progress or handle problems. Offer an agenda to focus the
“Sometimes, your failed participants, guidelines that explain the process, time to discuss the
attempt gave you much problem, opportunities to suggest solutions and a review of “action items.”
better insights as to the 5. “Execute” – Every meeting requires followup action even if it doesn’t yet
root cause of your deal involve engaging the client. To keep the sale moving, identify upcoming
problem or what the action steps and remind participants of their roles. The group outlines
prospect really needs to solutions, but the problem owner – with the sponsor’s guidance – decides
see, hear or feel.” how to proceed. Have a backup solution ready.
6. “Analyze” – After every interaction with the client, analyze the dealstorm
solution. In future sales, identify how to recreate the dealstorm’s success or
avoid its failures.
7. “Report”– Take notes on clients’ body language and feedback to report
back to the team. Even when the solution is in effect, keep the team aware of
ongoing successes. This ensures uptodate readiness if members need to
step in again. When problems arise, resolve each situation before
announcing a new problem.
014
“Give praise to the team Successful Dealstorm Meetings

for the solution, but be Keep meetings lighthearted. Reinforce the team’s focus with a clear, simple, two
careful not to attribute tothree page deal brief for review before the meeting. An initial dealstorm
the ideas to individuals.” meeting will take one or two hours; plan accordingly and don’t go long. To give
people a chance to chat, ask team members to gather 10 minutes before the
official start time. The problem owner facilitates the meetings. Facilitators need
“listening skills, protectiveness and assertiveness” to maintain focus and
momentum. The facilitator must listen to every idea to ascertain its potential
contribution. When company policies present roadblocks, the facilitator should
remain neutral rather than trying to reinforce the rules.
The “Collaborative Idea”

A group gathered from different divisions of a company is likely to include people
with differing styles and approaches. Pixar Animation president Ed Catmull
“There is no lone genius
believes that a new idea sometimes arrives as an “ugly baby,” but that time and
in sales. No individual
account executive or consideration can help it become what you need. Manage participation so
sales manager makes everyone gets to share recommendations and insights. Successfully executing a
the big deal or saves the collaborative idea that emerges from a dealstorm meeting takes a threestep
strategic account.” process:
1. “Confirm what was decided and agreed upon” – Shortly after the
meeting, the problem owner should send individual emails thanking each
participant, following up on deliverables and forwarding notes. Keeping
everyone on point prevents future confusion.
2. “Verify the assumptions and claims about key issues” – Check facts
and research the stories participants tell or the “hunches” they express.
Recognize and prepare for potential drawbacks, challenges and difficulties.
3. “Implement the winning ideas methodically” – Report the meeting’s
decisions, and create a timeline for the sale. Use a “testiteratelaunch
“‘One team, one
approach” to evaluate the solution. If relevant, build a prototype as a visual
company’ needs to
representation to help everyone understand the solution, or conduct a test
become a consistent part
run to highlight any potential errors.
of the conversation at
work.”
Dealstorm success stems from each team member’s careful planning and
thoughtful participation. The sales rep leads the process with the sales manager’s
guidance and support. The resource people provide information, generate ideas
and offer feedback. No major sale ever occurs through one person’s efforts alone;
sales success is the product of everyone’s cumulative effort.
About the Author

Former Yahoo chief solutions officer Tim Sanders cofounded the research group Deeper Media Inc. and also
wrote Love Is the Killer App, Today We Are Rich and The Likeability Factor.
015
Book
Designing World-Class E-
Beyond technology: how to create e-
Learning learning that meshes with the way
people really learn.
How IBM, GE, Harvard Business School & Columbia
University Are
Roger C. Schank, Ph.D.
McGraw-Hill, 2002
Buy the book
Recommendation
Elearning expert Roger C. Schank describes the secrets of a good elearning
program. He emphasizes using elearning to train inhouse employees, although
his methods could work in any setting. Schank clearly establishes the basic
principle that makes elearning work: learning by doing. He outlines methods
using scenarios and simulations that permit the learner to put new ideas into
practice immediately. He’s a little too fond of failing and trying over as a learning
method, when one might learn just as well by studying others’ failures and
successes. However, he supports his approach with educationbased examples
that demonstrate how children learn, along with an inside look at IBM and GE
programs. Visuals in the book show the computer screen in a teaching mode as
displayed to the user, so you see how your elearning material should look,
whether on a Web site or on a local intranet. getAbstract.com recommends this
solid handson instruction manual for training and development managers, and
for those who are building elearning experiences.

• The principles of effective elearning
• How to avoid common mistakes in setting up an elearning system
• How to design an elearning system based on the concept of learning by
doing
Take-Aways
• Elearning is less expensive than other forms of teaching many people at
once, since once you set up the system, any number of people can learn from
it.
• Include learning by doing in your package, since this is how people learn
naturally.
• Learning is meaningful when it helps people reach their goals.
• Learning arises from having expectations and failing to meet them; people
learn to correct what they did wrong, so they can fulfill their own
expectations in the future.
016
12/19/2016 Designing WorldClass ELearning Summary | Roger C. Schank, Ph.D.
• Don’t try to teach too much, since learners will suffer from information
overload and won’t learn.
• Break down any learning into sets of skills or "scriptlets," and teach those.
• Don’t depend on rote memorization; have employees learn by performing
the tasks.
• Use research and interviews to create realistic scenarios based on what
people actually do in your company.
• Provide training in a timely manner when people need the help to perform.
• Keep learners interested by making learning relevant, fun and practical.
Summary
The Value of ELearning

Elearning can be effective, economical and convenient, in that it permits learning
any time. It is thrifty, because once you build a training program, you can deliver
it continually to any number of learners over a long time. However, effective e
learning is more than just throwing your training manual up on a Web site. To
“ELearning is cheaper, make elearning work, incorporate natural learning principles based on how
not because it allows you
things are actually done.
to put your training
manual on a Web page, Learning by doing is critical; that’s how humans learn and that’s how human
but because it allows memory processes work. People learn by doing and then by finding out if what
many students to
they just did is wrong or right. That’s why people become more effective in a
experience training that
particular role as they become more experienced. Thus, the best way for an
was built once and then
employee to learn is by working on a job requiring the skills you have prioritized.
continually delivered.”
Through practice, the employee will eventually learn.
The downside of learning by doing is that it can be dangerous and expensive.

When you put an inexperienced employee in a job, he or she can make costly
mistakes, such as damaging an expensive piece of equipment. Also, employees
may not learn all they need to know through simple random learning. Thus,
training programs can be a more costeffective alternative. However, the
traditional educational model shortterm memorization of information that may
not come up in everyday life does not provide good training. Solid training
focuses on knowledge about real experiences. The basic principles of good
learning are:
“Effective elearning • Make learning engaging, or people won’t learn.

requires real
• Create simulated situations where learners can practice what you want to
experience...We learn
teach them.
best from reality.”
• Use real experience as a guide, since humans learn best from reality.
• Set up an elearning experience so it looks and feels precisely like the job
you want the learner to do.
Using the Learning by Doing Principle

Learning by doing works; it is how children learn. A child asks for a cookie, but if
she doesn’t ask properly, she doesn’t get it. Thus, she learns the right way to get it.
This basic principle of learning applies in all other areas of life. The key to
learning anything is having a goal. People want to learn to achieve their goals.
They are open to correcting their mistakes or accepting advice about differing
approaches, so they can reach their own destinations. For learning to be effective,
“There is no substitute the goals must reflect the learner’s real wishes, not the trainer’s.
for natural learning by
doing.”
017
Harness your employees’ goals to create good elearning experiences with the
learningbydoing approach. Since employees’ goals are anchored in better job
performance and in the personal, career and financial rewards that result from
good performance, use your training program to help them achieve their goals.
Avoid the traditional educational model. Unfortunately, many companies fall

right into the usual patterns. They bring in guest lecturers, create detailed
manuals and set up internal universities that offer structured courses. Such
programs don’t work because they ignore two central principles of learning. First,
learners have to internalize procedures they can use to improve their work
“The best way to teach performance, which means they have to try new methods and gain help if they
an employee is to let him fail. Second, to remember a new technique, they have to practice it. Learning
or her work on a job that builds on the peoples’ expectations and even on their failures when their
requires the skills you’re expectations aren’t met.
trying to teach, and
eventually that Thus, when you design a learning program, allow learners to have experiences
employee will pick them they can relate to past experiences, and then provide opportunities to practice,
up.” practice, practice. This handson approach works because learning by doing
teaches nonconscious knowledge, whereas learning through "being told
information" teaches only conscious knowledge. Nonconscious knowledge is
what helps you do something naturally. Even highlevel executives benefit from
training. To make it work, people have to be motivated to learn and they have to
perceive that simulation will help.
The four steps to creating an effective elearning course are:
1. Start by developing training for a job that is based on clearly defined and
repeatable skills, since these jobs are most amenable to being taught
through elearning.
“First and foremost: 2. Decide on your most important training need. Find a model in your
When learning isn’t organization who has already done what you want others to learn. If
engaging, it’s not someone hasn’t done this job yet, get the process working first, before you
learning.” try to set up a training program.
3. Find the best subject matter experts in your company, people who can
provide the information you need for your elearning program.
4. Collect stories from employees and use their stories to create realworld
simulations and scenarios. When employees role play these scenes they can
practice making action choices. This provides an arena to make mistakes
safely. Use text, animation, video clips and other techniques to create
dramatic realitybased scenarios.
Learning from Other Companies’ EExperience

Since a growing number of companies have used elearning, their experiences
“Good education means provide many lessons about what works and what doesn’t.
having real human goals
and educational goals For example, IBM used the GROW (setting Goals, doing a Reality check,
aligned. Students have identifying Options, and determining What to do) coaching model developed by
to really want to learn former race car driver Sir John Whitmore to create simulations for employees to
what you want to teach.” undergo before they entered a classroom training program. Managers and
executives experienced four scenarios based on the four phases of the model. To
illustrate the scenarios, IBM used photos and a series of pro and con options.
Learners could make choices and then check the outcomes for each choice. IBM
found that elearning is a good method for pretraining before learners go into the
classroom.
Additional elearning programs used by A.G. Edwards, WalMart and even Enron
demonstrated these major principles for what makes a good elearning program.
• To keep learners interested, show how difficult content, such as complex

financial products, can be applied in realworld situations drawn from the
018
learners’ jobs.
“The goal of effective e • When you provide access to resources, such as research materials needed
learning must be to re for estate planning, let learners decide how much research they want to do,
create as well as possible but make their tasks more difficult if they haven’t done enough research.
the breadth of
• Even if you have concrete information, such as survey results, talk to as
experience an employee
needs in an intense, many people in the company as you can to hear their stories about their
dangerfree, experiences. This allows you to base your scenarios on your company’s
inexpensive, and timely culture and atmosphere.
fashion.” • Don’t make your training too comprehensive. Don’t overload trainees with
too much information.
• Use thirdperson scenarios where the learner advises someone, so you don’t
evoke negative reactions, because employees think they would never be in
that situation.
Designing Powerful ELearning Delivery Systems

An elearning program has to be adapted to your organization. Follow these
principles:
• Incorporate "stories, simulations, goals, practice, fun and failure."

“Elearning should look • Give learners an opportunity to fail and then consider why, since people
and feel exactly like the learn when their expectations aren’t met. When people repeat the same
job the learner is being successful behavior and don’t try anything new, they don’t learn anything
trained to assume.” new either.
• Trigger emotions and feelings through realistic simulations since people
remember best what they feel most intensely. Don’t try to script "fake
realities," such as having a junior trainee and top manager socializing, that
wouldn’t happen in your company.
• Even lowlevel people have the capacity to learn when you create apt
simulations that the employee is likely to experience.
• Provide timely training when people are actually seeking help, so they are
motivated. A good time is after someone has had a failure and really needs
corrective help.
• Let the learner teach him or herself, since people naturally act as their own
“If you want to start teachers.
building simple e • Don’t require people simply to memorize facts, procedures or lists of
learning simulations, activities, since memory alone doesn’t turn into a learned skill. People have
pick a job with wellde to act on what they learn so incorporate actions and practice into your e
fined, repeatable skills.” learning program.
• Offer varied experiences that take different learning styles into account. For
example, some people like to dive in without explanations, while others
want detailed explanations of what will happen, and still others like a brief
introduction and then want to explore themselves. Provide these different
possibilities in your software.
• Start each session with a hook that makes employees eager to learn.
Commonly, classes start with a long, dull explanation of what’s coming up.
Instead, begin by giving people a powerful, emotionevoking experience and
then asking them to do something as a result.
“Traditional training Creating the ELearning Scripts and Designing the Course
that insists on right and Use the building blocks of elearning to create scripts and dramatize them. The
wrong answers building blocks are scriptlets and the learner’s own goals. Each scriptlet consists
disempowers the of a procedure or group of actions that a person performs so often that he or she
individual it robs can do it without thinking. For instance, a scriptlet might be the task of
people of their decision programming a VCR.
making ability.”
019
Build a series of scriptlets into your elearning course by teaching a series of skills.
For instance, don’t teach employees how to "do customer service;" break the job
into the skills or scriptlets they will use, such as handling a complaint or dealing
with a difficult person. Any job can be broken down into a series of skill sets made
up of a collection of activities based on specific predictable situations. Don’t try to
teach general principles; people learn from repeated experience and practice.
To determine what scriptlets to use, gather data about the needs of those you plan
to teach. What do they not know how to do? What mistakes are they making and
why? Turn this into the major points you want to teach in an elearning course.
“To keep learners’
interests, and for the These teaching points become specific lessons when you stage scenarios. Select
lessons learned to be pictures and descriptions to illustrate skills and actions. Create exercises based on
useful, it’s very
reallife options and activities. Provide ways for the learner to correct mistakes,
important to connect
such as by making another better choice. Give feedback about why a particular
difficult content to the
action is incorrect.
human, realworld
context in which
For instance, take a scenario where the learner plays the role of a manager in a
learners will use it.”
new department. Have the learner participate in a series of meetings with
different employees, deciding whether to help each employee through coaching,
resolving problems or motivating him or her to do better. After each choice, the
manager can look at the consequences of that decision and make another choice if
that was a mistake. Keep your scenarios real to make learning meaningful and to
provide practice opportunities.
About the Author

Roger C. Schank, Ph.D., is a Distinguished Professor of Computer Science at Carnegie Mellon University, and
the founder and chairman of CognitiveArts, a leading elearning development firm. He also runs Schank
Learning Consultants, and is an author and lecturer, as well as the inventor of powerful multimedia training
tools. He founded the Institute for the Learning Sciences at Northwestern University and directed the Artificial
Intelligence Project at Yale University. He has published more than 125 articles and books, including Coloring
Outside the Lines, Dynamic Memory and Engines for Education.
020
Emotional Intelligence
Your IQ is only 20% of your success.
Why It Can Matter More Than IQ The rest is emotional. How do you
Daniel Goleman feel about that?
Bantam, 2006
First Edition: 1995
Buy the book
Recommendation
In this seminal work, Daniel Goleman introduced millions of readers to the
concept of emotional intelligence the amalgamation of psychological skills and
traits that he claims accounts for 80% of life success. Skills like selfawareness
and selfmotivation are instilled (or destroyed) in childhood, but Goleman claims
that adults still can learn and apply them. This book is at its best when Goleman
makes his overall case for emotional intelligence, including its sound biological
underpinning. Although the later sections on realworld applications are not as
insightful as the earlier sections, getAbstract strongly recommends this important
book, which is relevant not only to business, but to life itself.

• How to define "emotional intelligence;"
• How developing your emotional intelligence contributes to your success in
life
• How managers can use emotional intelligence to improve group
performance
Take-Aways
• IQ contributes only 20% to life success the rest of your achievements come
from "emotional intelligence."
• The five areas of emotional intelligence are selfawareness, managing
emotions, selfmotivation, empathy and handling relationships.
• Human beings have the equivalent of two minds one that thinks and one
that feels.
• The two sections of the brain operate independently.
• Strong emotions interfere with clear thinking. Anxiety undermines the
intellect.
• Your goal is to find an intelligent balance of reason and emotion.
• Flow how people feel when fully engaged in tasks that fit their skills and
preferences is emotional intelligence at its best.
021
12/18/2016 Emotional Intelligence Summary | Daniel Goleman
• Cultivating emotional intelligence is a costeffective management

imperative.
• Feedback is the currency of emotional intelligence in management.
• The success of a group is not determined by the IQ of its members, but by
their emotional intelligence.
Summary
Emotional Intelligence
Recent years have seen a surge of research into the biology of personality and
emotion. These studies clearly indicate that some of human intelligence and
personality is determined by genetics. But this raises two questions: What can you
change about yourself? And, why do some intelligent people founder in life, while
“The notion that there is less intelligent people prosper? The answers reside within a set of abilities called
pure thought, rationality
emotional intelligence.
devoid of feeling, is
fiction.” Evolution gave humankind emotions to help people cope with dangerous
situations and to act in the face of peril. Modern people retain the emotional
system of their cavedwelling ancestors, who regularly faced lifeanddeath
situations. In modern society, those emotions often overwhelm logical thought. In
a real sense, each person has two minds, one that thinks and one that feels. The
rational mind lets a person ponder and reflect. But the emotional mind is
impulsive and powerful. Usually, the two work in harmony, but intense feelings
sometimes allow the emotional mind to dominate the rational mind.
The brain’s centers of emotion evolved first. The limbic system surrounds the
brainstem, the center of passionate emotion. The brainstem also influences
memory and learning. The neocortex, where the brain thinks, evolved later, and
“We have feelings about then the amygdala grew on the sides of the brain. These paired structures act as
everything we do, think storehouses of emotional memory. The amygdala gives life emotional meaning
about, imagine, and passion. In a crisis, the amygdala reacts almost instantly, far more quickly
remember. Thought and than the neocortex. This emotional brain can act independently of the thinking
feeling are inextricably brain. The amygdala lends extra weight to memories of emotional arousal,
woven together.” enabling you to have vivid memories of pleasure or danger.
While the amygdala pushes you to action, the cortex works like a damper. It stifles
or controls feelings. A person experiences an emotional hijacking when the
amygdala is triggered and the neocortex fails to control it. Such strong emotions
can interfere with attention span and every aspect of clear thinking. But instead of
trying to eliminate their feelings, people should strive to find an intelligent
balance of reason and emotion.
Components of Emotional Intelligence

The IQ contributes only 20% to your success in life. The rest is the result of
emotional intelligence, including factors such as the ability to motivate yourself,
“IQ and emotional intel persistence, impulse control, mood regulation, empathy and hope. IQ and
ligence are not opposing emotional intelligence are not opposing competencies, but they do work
competencies, but rather separately. A person can be intellectually brilliant but emotionally inept, an
separate ones.” imbalance that can cause many life problems.
Yale psychologist Peter Salovey analyzed emotional intelligence in five realms:
• Selfawareness.
• Managing emotions.
• Motivation.
• Empathy.
022
• Handling relationships.
SelfAwareness: Knowing Your Emotions

“This split approximates
Feelings are often hidden. Emotional selfawareness requires ongoing attention to
the folk distinction
your internal states, including your emotions. Awareness is a neutral state that
between ’heart’ and
generates selfexamination even during intense emotions. Psychologist John
’head’.”
Mayer calls it being "aware of both our mood and our thoughts about that mood."
For practical purposes, selfawareness and the ability to change your moods are
the same. Emotions can be and often are unconscious as well as conscious. They
begin before you are rationally aware of an oncoming feeling. Unconscious
emotions can have a powerful effect on your thoughts and reactions, even though
you are not aware of them. When you become conscious of these feelings, then
you can evaluate and better control them. Therefore, selfawareness is the
foundation for managing emotions, such as being able to shake off a bad mood.
Managing Emotions: Handling Your Feelings

Ever since the ancient Greeks, people have seen selfmastery and the ability to
withstand emotional storms as a virtue. Yet, life without passion would be boring.
“Knowing something is
Pursue, instead, a medium stance: the goal of appropriate emotion. Managing
right ’in your heart’ is a
your emotions is a fulltime job. Many of the things people do every day, from
different order of
work to recreation, are attempts to manage mood, to balance the constant
conviction somehow a
deeper kind of certainty background hum of emotion. The art of soothing the surge of emotions
than thinking so with particularly intense surges is a basic life skill, one of the most essential psychic
your rational mind.” tools. The brain’s design means that a person has little control over when he or
she is swept by an emotional wave or over what those emotions will be. However,
through effort, behavior change or even medication, individuals can exert control
over how long and intensely an emotion will endure.
One of the most difficult emotions to escape is rage, partly because anger is
energizing, even exhilarating. It can last for hours and create a hairtrigger state,
making people much more easily provoked. If someone is already edgy and
something triggers a second emotional onslaught, the ensuing emotion is
especially intense. A good way to cool off from anger is to seek distractions. Going
off alone helps, as does exercise. Emotions such as sadness and bereavement can
alleviate rage, but they raise the danger of fullblown depression. To break cycles
of depression, therapists teach people to challenge the thoughts that feed the
“This sense of rightness depression, and to schedule a range of pleasant distractions. These can include
or wrongness deep in the exercising, having a sensual treat, accomplishing some small task, helping others
body is part of a steady in need or reaching out through prayer. Cognitive reframing, or looking at the
background flow of situation in a more positive light, is also a powerful tool.
feeling that continues
throughout the day.”
SelfMotivation: Using Emotion to Meet Your Goals
Positive motivation is crucial to achievement. The greatest athletes, musicians and
chess masters are distinguished by their ability to stick with arduous practice,
year after year, beginning early in life.
Emotions determine how people get on in life because they can enhance or limit
the capacity to use innate abilities. The ability to restrain emotions and delay
impulses, to defer gratification, is a critical life skill and the key to a host of
endeavors, from dieting to getting a college degree.
Anxiety undermines intellect, but a positive mood enhances thinking. Those who
are adept at harnessing their emotions can even use their anxiety for motivation.
“The emotional mind is Experts describe the relationship between anxiety and performance as an upside
far quicker than the down U. Too little anxiety means no motivation and poor performance. Too much
rational mind, springing anxiety impairs intellect. Peak performance comes in the middle. A mildly elated
into action without state called hypomania is ideal for writers and other creative people.
pausing even a moment
to consider what it is
doing.”
023
Hope and optimism also play powerful roles. Hope means not giving in to
negativism or depression in the face of setbacks. Optimism means having a strong
expectation that things will turn out well. Optimists attribute failure to something
they can change, so they do not get depressed when things don’t work. Optimism
is an emotionally intelligent attitude that boosts performance in the business
world. Selfefficacy the belief that you have mastery over the events in your life
and can meet the challenges that confront you underlies both hope and
optimism.
Psychologists have identified a peakperformance state called "flow," which

musters the most positive use of emotional intelligence. Flow is the feeling you
“We send emotional have when you are fully engaged in a task where you have advanced skills and love
signals in every the work involved. Flow arrives in the zone between boredom and anxiety. The
encounter, and those emotions you feel during flow are positive, channeled and directed at the task at
signals affect those we hand. Flow is a state of selfforgetfulness and focused attention, a state of joy,
are with.” even rapture. Your brain actually becomes calmer during flow, which enables you
to finish challenging tasks with minimal energy. To teach people how to achieve
flow even children have them repeatedly perform activities that they love.
Empathy: Mastering the Fundamental People Skill

The more selfaware you are, the more skilled you will become at reading other
people’s feelings. Rapport, the root of caring, arises from the capacity for
empathy. Those who can read the feelings of other people are better adjusted,
more popular, more outgoing and more sensitive.
Empathy begins in infancy, with attunement, the nonverbal physical mirroring

between child and parent. Attunement reassures an infant and makes it feel
“Being able to enter emotionally connected. Attunement requires feeling calm enough to be able to
’flow’ is emotional intel read subtle, nonverbal signals from other people.
ligence at its best.”
Handling Relationships: Dealing with Other People
The ability to express feelings is a key social competence. Emotions are
contagious. People send emotional signals during every encounter and
unconsciously imitate the emotions that others emanate, so each person’s signals
affect others. As people interact, they often mirror each other’s body language.
The more they show this synchrony, the more they share moods. This
coordination of moods is the adult version of infantparent attunement, and is a
key determinant of interpersonal effectiveness. The better you are at sensing the
emotions of others and controlling the signals you send, the more you can control
the effect you have on others. This is a fundamental part of exercising your
emotional intelligence.
“In terms of biological
design for the basic
Applied Emotional Intelligence
neural circuitry of
emotion, what we are Emotional intelligence is significant in most areas of daily life, including:
born with is what
worked best for the last • Management The arrogance some bosses project and the bad morale that
5,000 human they create diminish productivity and drive employees away. Applying
generations, not the last emotional intelligence to avoid such negative outcomes in a business
500 generations and environment is simply costeffective organizational management. Feedback
certainly not for the last is the basic currency of managerial emotional intelligence. Managers must
five.” learn to provide it and to accept it intelligently. They should not see
feedback either as a criticism or as a personal attack. To deliver an artful
critique, speak to the other person facetoface. Exercise your sense of
empathy. Convey specific praise as well as criticism. Focus on solutions.
Those on the receiving end of criticism should learn to hear it as valuable
information. In an economy dominated by knowledge workers, the concept
of the group emotional quotient is critical. Successful teams are based on
the ability of team members to work together in harmony and to take
advantage of each person’s talents.
024
• Marriage Emotional intelligence can help counteract the social and

personal tensions that pull marriages apart. Men and women learn different
“The question is, how emotional skills as children. Harsh criticism is a key warning sign of trouble
can we bring intelligence in a marriage. For harmony, people must learn to criticize an action without
to our emotions and
attacking the person who committed the act. Personal attacks leave people
civility to our streets and
feeling ashamed and defensive, and can trigger fightorflight responses.
caring to our communal
life?” • Child raising Studies of children show a decline in their emotional health
across the industrialized world. This trend is reflected in widespread
withdrawal, anxiety and depression, attention disorders and delinquent
behavior. Children and adults should be trained in the five key emotional
intelligence skills.
• Medicine The emotional brain is closely tied to the immune system. Stress
makes people more susceptible to infectious diseases. Hostility has long
been associated with heart disease, but any intense negative emotions can
harm your physical wellbeing. Relaxation exercises are a good
countermeasure. So is selfconfession. Talking about problems even
enhances your immune function. Doctors should learn that managing
feelings is a form of disease prevention and that patients do better when
“People who take the their psychological needs are met.
pessimistic stance are
extremely prone to Emotional Literacy
emotional hijackings.”
Character is the oldfashioned word for the aggregate skills of emotional
intelligence. Those who cultivate the ability to set aside selfcentered focus and
emotional impulses, thus nourish their emotional intelligence, including self
understanding, selfcontrol, enhanced motivation, acceptance of other people and
improved relationships.
About the Author

Daniel Goleman, Ph.D., covers the behavioral sciences for the New York Times. He taught at Harvard and was
formerly editor of Psychology Today. His other books include: Social Intelligence: The New Science of Human
Relationships, Working with Emotional Intelligence and The Meditative Mind. He is the coauthor of
The Creative Spirit.
025
Focus
Paying attention pays dividends, but
Daniel Goleman
most people have to reclaim the
Bloomsbury, 2013
Buy the book
ability to focus.
Recommendation
Daniel Goleman, author of the groundbreaking, mid‘90s classic Emotional
Intelligence, turns his attention to the subject of attention – and explains why
focus is essential for navigating life, performing at your best, leading others and,
ultimately, improving the world for future generations. His illuminating
explanations of brain functions will be useful to businesspeople and educators.
Ironically, Goleman digresses often, and his efforts to incorporate issues that
matter to him – such as climate change and economic inequality – prove
confusing. Still, he’s superb at thoughtfully explaining how people think and feel.
getAbstract finds that his simple explanations of the workings of the human
brain, and his depiction of focus as a triad of attention paid to “inner, other and
outer” targets make reading his work more than worthwhile. Goleman compares
attention to a muscle you can flex and strengthen. For a buff psyche and enhanced
mental tone, try this attention workout.

• How your brain exerts attention
• How to use three kinds of focus
• How to build your focus to enhance your learning, performance and
leadership
Take-Aways
• Applying three categories of focus – “inner, other and outer” – is essential
for a highly functioning life.
• “Selective attention” is the ability to focus on one task in spite of “sensory
and emotional” distractions.
• Staying on target suppresses any emotional interference and helps you to
remain cool under pressure.
• Emotions intrude on focus; completing a task is more difficult when you’re
upset.
• Attention grows stronger and sharper with use, exercise and practice.
• In a “wandering” state of mind, you pause for selfreflection, contemplate
future scenarios, hatch ideas or question assumptions.
026
12/18/2016 Focus Summary | Daniel Goleman | PDF Download
• Selfawareness comes from recognizing internal cues and interpreting them

accurately.
• Focused empathy takes three forms: “cognitive, emotional and empathic
concern.”
• Today’s youth, members of the first digital generation, are growing up more
attuned to devices than to people.
• Every leader must focus a firm’s attention where it’s most needed and most
productive.
Summary
Paying Attention
How well you pay attention affects every aspect of your life. Effective focusing
skills enhance mental processes, including understanding, learning, listening,
being creative and reading other people’s signals. Most people underestimate
“Focus is not just focus or overlook its importance.
selecting the right thing,
but also saying no to the You need to exercise all three categories of focus – “inner, other and outer” – to
wrong ones.” function well in life. Inner focus refers to heeding your gut feelings, values and
decisionmaking abilities. Other focus pertains to how you relate to and connect
with other people. Outer focus allows you to get by in the larger world.
“Selective Attention”
Someone writing poetry on a laptop in a busy coffeehouse is demonstrating
selective attention – focusing on one task and ignoring external stimuli. Such
distractions are either “sensory” or “emotional.” Sensory distractions like shapes,
colors and sounds stimulate your senses. Emotional lures cut through the clutter
to draw your attention, like hearing your name called in a crowded restaurant.
“Though it matters Emotions intrude on focus; completing a task is more difficult when you’re upset.
enormously for how we
navigate life, attention The brain’s prefrontal region is responsible for selective attention. The more you
in all its varieties focus on one thing, the better your performance. Staying on target suppresses
represents a littleno emotional interference and helps you remain cool under pressure. Controlling
ticed and underrated your attention by focusing on one thing, then moving on to the next, indicates
mental asset.” sound mental health. Jumping from one thing to the next multiplies any feelings
of helplessness and anxiety.
You focus more easily when you’re doing something you enjoy. Feeling in the zone
or the “flow” results from immersion in an activity you find rewarding, inspiring,
stimulating or intellectually challenging. In contrast, repetitive, unfulfilling tasks
cause disengagement, boredom and apathy.
Two semiindependent systems make up the human brain. The lower brain’s
massive computing power operates just below consciousness, coming into the
forefront only when jarred by something unexpected. At such moments, the
“While the mind bottom brain, active in the subcortical circuitry, communicates with the top brain,
sometimes wanders to or neocortex.
pleasant thoughts or
fantasy, it more often Bottom brain activity is involuntary, reflexive and fast. It functions constantly,
seems to gravitate to handling rote behaviors and filtering information and stimuli. As it continually
rumination and worry.” learns, it adjusts your perceptions. Emotion sways the bottom brain. The top
brain, which is under your conscious control, is the locus of voluntary focus, active
when you choose to watch a sunset, plan your day or learn a new task. Sometimes
the bottom and top systems share mental activities to optimize your results with a
minimum of exertion. For example, as you master a task like driving, the top
brain learns and then the bottom brain takes over. Performing the task becomes
almost instinctive.
027
Midbrain circuitry notices things on a neural level, such as a baby’s cry or a spider
on the floor, and signals to the top brain. The brain’s amygdala checks your
surroundings for threats and sends alarms when it spots danger. When your
“People who are tuned amygdala senses a threat, it commandeers your emotions until the top brain
out not only stumble analyzes the danger; then it defends you or sends calming signals.
socially, but are
surprised when someone Never Mind
tells them they have Your “wandering mind” – where your thoughts travel when not engaged in a
acted inappropriately.” mental task – is the brain’s default setting. In this state, people pause for self
reflection, contemplate future scenarios, hatch ideas, dwell on memories or
question their assumptions. Brain scans show that the area for focus – the
“executive system in the prefrontal cortex” – activates during downtime.
While your mind wanders, your sensory systems dim. Doing activities that do not
require a laser focus frees your mind to ramble. Focusing sharply on one activity
quells outside stimuli, such as buzzing phones. Sustaining deep attention can be
draining. To replenish, take breaks, meditate, exercise or do something fun.
SelfAwareness and SelfControl

“While the link between
attention and excellence Selfawareness comes from recognizing internal cues and interpreting them
remains hidden most of accurately. “Gut feelings” are messages from the insula, the area in the brain’s
the time, it ripples frontal lobes that acts as a nerve center for your internal organs. People in sync
through almost with their emotions have highfunctioning insulae and a strong inner voice. The
everything we seek to insula’s signals help you intuitively form a value system, which becomes more
accomplish.” concrete as you articulate it to yourself and practice it.
Selfawareness is a focus that works as an internal compass. It governs your

actions and aligns them with your values. Willpower and selfregulation are
functions of “executive attention.” Focusing on achieving a goal requires
exercising selfcontrol to subdue your impulses and ignore intrusive emotions. An
iconic study by the psychologist Walter Mischel in the 1970s measured the
willpower of young children. In the “marshmallow test,” researchers told four
yearolds they could eat a marshmallow right away or they could wait a few
minutes and get two marshmallows. Left alone with one marshmallow, the
children who successfully waited for the extra treat succeeded by distracting their
“Setting aside some focus from the marshmallow by using fantasy play or singing songs. The
regular reflective time in continuing study eventually showed that the children who could delay
the daily or weekly gratification at age four performed better in all aspects of their adult lives.
schedule might help us
get beyond the firefight
I Feel for You
oftheday mentality, to
take stock and look “Cognitive empathy” is a topdown brain function that enables you to look at
ahead.” things from another person’s point of view, understand what that person is
thinking and feeling, and manage your emotional response. When your emotions
align with someone else’s, you experience the bottomup response of “emotional
empathy.” A topdown/bottomup response, called “empathic concern,” leads to
taking helpful action.
You have to focus to tune in to other people’s nonverbal cues such as facial
expressions and to perceive their emotions. You feel another person’s suffering –
a hardwired physiological response – in your amygdala. Attention centers inside
the brain connect with its areas for social sensitivity, giving humans the ability to
feel compassion and manage their emotional reactions. Compassion and concern
“Video games focus grow naturally from empathy, the feeling people want and expect from doctors,
attention and get us to bosses and family members. For example, patients are more likely to sue for
repeat moves over and malpractice when their physicians share fewer signs of empathy and
over, and so are consideration, even if their rate of error matches that of more outwardly
powerful tutorials.” empathetic doctors.
028
Everyone’s social acuity falls on a continuum from socially oblivious to highly

intuitive. People who fail to notice social cues often act inappropriately, missing
nonverbal messages or misreading context. They’re often unaware when they
make social gaffes, such as being rude or speaking too long or too loudly. Where
you fall on the social hierarchy affects your ability and desire to read others.
Columbia University research reveals a direct correlation between power and
“Kids who can ignore attention: The higher your rank, the less heed you pay to other people’s thoughts
impulse, filter out what’s and feelings.
irrelevant, and stay
focused on a goal fare
better in life.” System Navigation
No single area of the brain deals exclusively with system recognition and
comprehension, but the mind uses the brain’s parietal cortex to recognize
patterns. The ability to read and navigate systems is a learned process, separate
from selfmastery and empathy. System navigation is an essential life skill. People
understand systems indirectly, by developing mental models during firsthand
experiences and by absorbing distributed knowledge.
Pandemics and climate change are systemic problems that people learn about by
gathering data, identifying patterns, and noticing peaks and disturbances. For
example, “big data” collected by Google and analyzed with sophisticated software
“Selfawareness... identified areas of flu outbreaks within 24 hours. The brain readily perceives
represents an essential immediate threats, but your perceptual system is blind to longterm dangers, such
focus, one that attunes as the thinning of the ozone layer.
us to the subtle murmurs
within that can help Practice Makes Perfect, Sometimes
guide our way through Psychologist Anders Ericsson’s research about expertise laid the foundation for
life.” the “10,000hour rule,” which holds that achieving the highest possible level of
performance takes at least 10,000 hours of practice. Unfortunately, the rule is
only partly true. Practice makes closetoperfect only if it’s conducted in a “smart”
way – that is, if the person who is practicing uses that time to make adjustments
and improvements. How much attention you pay during practice is crucial.
Productive practice includes feedback, which is why dancers practice in front of a
mirror.
Professional athletes, experts and other high performers counteract the brain’s
natural inclination to make routines automatic and to transfer them to the bottom
mind. They use focus, skill development, refinement and positivity to strengthen
“While we are equipped their brain circuitry. Feeling upbeat is a crucial requirement for productive
with razorsharp focus
practice. Positive emotions ignite the brain’s left prefrontal area, making people
on smiles and frowns,
feel motivated, aware and energized.
growls and babies, as
we’ve seen, we have zero Mindfulness refers to the practice of paying “attention to attention.” Meditation
neural radar for the
focuses on your inner state and develops your capacity to observe yourself in the
threats to the global
moment without judgment. It strengthens focus by improving your ability to
systems that support
human life.” sustain attention. The meditation cycle rotates through the following four steps:
“The mind wanders, you notice it’s wandering, you shift your attention to your
breath and you keep it there,” until your mind wanders again.
Games and Cognitive Skills

Playing video games generally diminishes brainpower. Certain games do improve
some cognitive abilities, including “visual acuity and spatial perception, attention
switching, decision making and the ability to track objects.” “Smart games” that
improve focus and boost cognitive function may become educational tools. Such
games provide:
“Directing attention • Specific goals for different levels of play.

toward where it needs to
• Feedback and pacing geared toward each user.
go is a primal task of
leadership.” • Challenges that progress in accordance with players’ skills.
• Different contexts for applying a particular set of skills.
029
In the Classroom
Some schools are adding “social and emotional learning” (SEL) practices to their
curriculum in order to help children selfregulate. For example, the “stoplight”
exercise instructs kids to think of a traffic signal when they become upset or
overstimulated. The red light means: Take deep breaths and try to calm down. A
yellow light cautions kids to pause first, then reflect and come up with alternative
behavior. A green light encourages them to try a solution.
“The power to disengage The constant lure of technology waylays young people’s attention and
our attention from one compromises their interactions with other people. Today’s youth, the first digital
thing and move it to generation, grow up more attuned to devices than to people. They may develop
another is essential for cognitive skills for navigating the virtual world at the cost of the kind of personto
wellbeing.”
person attentive skills needed to build rapport, empathy and social dexterity.
Adults are not immune. They may find it hard to read more than a couple of
pages, listen to a speech longer than five minutes or stop constantly checking their
smartphones. However, the ability to pay attention grows stronger with use,
exercise and practice.
Attention in Organizations
Every effective leader must focus a firm’s attention where it’s most needed and
productive. Triple focus provides direction. First comes inner focus: Heed your
behaviors and the effects of your actions. Leadership requires knowing your
“Attention works much values and communicating your vision to inspire and motivate others. Other focus
like a muscle – use it means developing an organizational strategy to provide a road map of issues and
poorly and it can goals that require attention. Great managers develop interpersonal skills and can
wither; work it well and effectively listen, respond and collaborate. Using outer focus, leaders absorb the
it grows.” big picture, visualize complicated systems and foresee how their decisions will
play out in the future.
About the Author

Science journalist and twotime Pulitzer Prize nominee Daniel Goleman wrote The New York Times bestseller
Emotional Intelligence.
030
Good to Great
Jim Collins explains why some firms
Why Some Companies Make the Leap … and Others Don’t go from Good to Great and stay great
Jim Collins – and why others don’t.
HarperBusiness, 2001
First Edition: 2001
Curious about Good to Great? Read our review below. We’re still awaiting
the copyright holder’s go-ahead to summarize this book in our usual
summary format. In the meantime, we hope you’ll find our review just as
helpful.
Review
Elusive Greatness
When this nowclassic manual first appeared in 2001, it rapidly became one of the
most popular business publications of all time. Prolific business author and
consultant Jim Collins, a foremost analyst of how to build and sustain a business,
also wrote How the Mighty Fail and Managing the Small to MidSized Company,
and cowrote Great by Choice and Built to Last, another bestseller.
Here Collins pursues one
basic question: “Can a Here he pursues one basic question: “Can a good company become a great
good company become company and, if so, how?” The principles of his “goodtogreat” formula still hold
great and if so, how?” up, but interestingly, many of the companies he and his research team identified
as great didn’t last. Why is that? Clearly, Collins’ goodtogreat tenets identify
sound management practices: Hire the right people, specify your purpose, focus
on results and make the tough decisions – the basic precepts now taught in any
business management course. Yet unpredictable or unquantifiable forces, such as
cumbersome bureaucracy, CEO ego, unanticipated markets and economic change,
can push many successful firms off the cliff. They slide from great to good to bad
to out of business. Despite the age of this classic business manual, a read of
Collins’s principles could help forestall that fall.
Fail or Thrive
Collins’s remarkably popular books share a common theme: how and why
businesses fail or thrive. That’s his area of study, and he draws deeply on his
research to produce indepth examinations of the forces that sustain or
undermine businesses. Collins writes, as you might expect, like a business
Superhero CEOs do not consultant. The readers most likely to relish his unadorned, commonsense style
make companies great.
031
12/18/2016 Good to Great Summary | Jim Collins | PDF Download
are businesspeople. But his generally pedestrian prose doesn’t keep him from
producing memorable, pithy aphorisms like, “While you can buy your way to
growth, you absolutely cannot buy your way to greatness.”
Anyone seeking ideas about building a topflight organization with a culture to

match can gain wisdom from Collins’s way of thinking and presenting
information.
One Thousand Four Hundred and ThirtyFive

Collins and his researchers sifted through 1,435 Fortune 500 companies to find
the few that met their study’s criteria for greatness, which were: “15year
cumulative stock returns at or below the general stock market, punctuated by a
transition point, then cumulative returns at least three times the market over the
Goodtogreat
next 15 years.” The 11 companies that made the grade in 2001 were Abbott, Circuit
companies are like
City, Fannie Mae, Gillette, KimberlyClark, Kroger, Nucor, Philip Morris, Pitney
hedgehogs, concentrat
Bowes, Walgreens and Wells Fargo. Researchers directly compared these
ing on what they do
better than any other or companies with 11 firms in the same industries that had similar resources and
ganization. challenges but failed to become great. They also compared their 11 winners with
six firms that achieved greatness for a time, but didn’t sustain it.
The researchers conducted an indepth analysis of each great company –

including interviews with its executives and CEOs and a close examination of its
financial records, acquisitions, compensation plans, business strategies and
corporate culture. Researchers were struck by the factors their research negated.
For example, having a famous superhero CEO doesn’t make a company great, and
executive compensation doesn’t correlate with corporate achievement.
Collins structures the path of goodtogreat firms as “a process of buildup

followed by breakthrough” in three stages of corporate development. Stage 1,
“disciplined people,” requires “Level 5 Leadership,” featuring professionally
driven, humble leaders who put corporate results ahead of personal success,
accept responsibility and choose great successors. Stage 2, “disciplined thought,”
requires leaders to “confront the brutal facts.” Here, Collins says, executives must
The Circuit City pattern ask hard questions, make factbased decisions and accept the truth derived by
of development and using four protocols: “Lead with questions, not answers”; “engage in dialogue and
growth offers a goodto debate, not coercion”; “conduct autopsies without blame”; and “build redflag
great paradigm. Its mechanisms” to alert you to data you can’t ignore.
success sprang from a
gradual buildup, the During Collins’ Stage 3, “disciplined action,” companies inculcate a “culture of
cumulative effect of discipline.” Successful startups often fall into a hazardous cycle. Early on, he
small victories and good says, creativity and passion fuel growth. But growth brings the need to organize
decisions made over operations, with solid staffing, production processes and corporate systems – all
time. of which stifle the creativity that built the enterprise in the first place. Instead of
falling down that rabbit hole, Collins advises, create a disciplined managerial
framework and promote creativity within it.
Strategy doesn’t ensure greatness, nor does technology or acquisitions. Great

companies thrive in pedestrian industries. Greatness doesn’t result from big
launch events, motivational programs or management upheavals. Collins found
that the transformation from “Good to Great” evolves in a careful, deliberate cycle
of development followed by a leap forward. This process functions within the
“Flywheel,” a holistic frame of accumulated “effort applied in a consistent
direction.”
“The Flywheel and the Doom Loop”

When CEO Alan Wurtzel took over Circuit City in 1973, it was near bankruptcy.
He and his team developed the company’s warehouseretailing concept slowly. In
What can you do better the late 1970s, they converted its traditional stereo and electronics stores into
than any other company superstores. The superstore concept took hold and built momentum through the
– and what are you 1980s and ’90s. The Circuit City pattern of development and growth offers a good
unable to do better? togreat paradigm. Its success sprang from a gradual buildup, the cumulative
032
12/18/2016 Good to Great Summary | Jim Collins | PDF Download
effect of small victories and good decisions made over time. It never had a
meteoric rise or a “miracle moment” – such as a single transformational
development. This pattern of steady “buildup and breakthrough” is analogous to a
flywheel that builds momentum. This “flywheel effect” is circular and builds on
the “accumulation of effort applied in a consistent direction.” Companies that
Collins compared with goodtogreat corporations but that didn’t make the grade,
fell into the doom loop. They launched new “miracle” programs, tried to buy
success with acquisitions or mergers, and underwent frequent restructuring and
leadership change.
“The Hedgehog Concept”

A Greek fable pits a fox against a hedgehog. The fox is cunning, smart and sneaky;
the hedgehog is plodding and slow. But no matter how much ingenuity the fox
shows in its attack, the hedgehog rolls into a ball with its spikes sticking outward.
Create a disciplined
managerial framework Finally, the fox leaves, defeated. The hedgehog knows its strengths and sticks to
and promote creativity what it does best.
within it.
Goodtogreat companies are like hedgehogs, concentrating on what they do
better than any other organization. For example, Walgreens left Eckerd, a rival
drugstore chain, in the dust between 1975 and 2000 by focusing on one hedgehog
concept with clarity and consistency: Walgreens sought to become America’s most
convenient drugstore. It chose hightraffic sites and pioneered the idea of drive
through prescription pickups. Walgreens married its focus on convenience with
its goal of increasing its “profit per customer visit.” Its zeal in these two areas
fueled its rise to the top. Collins says you, too, can find your hedgehog concept by
considering what asset emerges at the intersection of three ideas: What can you
do better than any other company – and what are you unable to do better? How
do you make money? What work evokes your heartfelt dedication?
The steps an organization takes in alignment with its hedgehog concept lead to
both big and small accomplishments. These advances build a record of visible
results, which energize everyone involved. Enthusiastic, united employees push
Collins found that the the flywheel harder and faster as the firm gains strength and momentum. On the
transformation from road to greatness, the flywheel builds momentum through consistency and
“Good to Great” evolves commitment to the focused hedgehog concept.
in a careful, deliberate
cycle of development
On Target
followed by a leap
At times, Collins’s workmanlike language can obscure how insightful, ontarget,
forward.
unsentimental and practicable his discoveries are. Collins doesn’t push a
particular theme or theory. Unlike many business authors, Collins’s brand is not
himself. He became a widely respected bestselling author by carefully
researching the questions he explores and presenting his perceptive answers with
no axe to grind. That is a rare and welcome approach. The simplicity with which
Collins explains complex forces, ideas and solutions make his insights all the more
valuable, memorable and a template for all businesses, large and small, to follow.
About the Author

Consultant Jim Collins also wrote How the Mighty Fail and Managing the Small to MidSized Company and
coauthored, among other books, Great by Choice and Beyond Entrepreneurship. He coauthored the business
bestseller Built to Last: Successful Habits of Visionary Companies and contributes to the Harvard Business
Review and Businessweek.
033
Hooked
Your habits, good and bad, are money
How to Build Habit-Forming Products in the bank to the people who make
Nir Eyal the products you use every day.
Portfolio, 2014
Buy the book
Recommendation
Your alarm wakes you and you stagger to the kitchen to brew a cup of coffee. You
reach for your smartphone to map the traffic to work, check the weather and get
an update on your friends. You perform these activities automatically, with little
thought. Yet, if you find Keurig, Weather.com or Facebook habitforming, that’s
not an accident. Getting you to incorporate its products and services into your
habitual routine is the ultimate goal of every business. Consumer psychology
expert Nir Eyal developed the “Hook Model” to put this brass ring closer to
product developers’ grasp. He created his fourstep model by researching the
traits that successful products have in common, drawing insights from behavioral
psychology and neuroscience, and extrapolating from his personal experience in
gaming and advertising. While his model seems particularly apt for digital
products, getAbstract recommends this userfriendly text to marketers, designers
and entrepreneurs across product categories.

• What advantages companies earn when they create habitforming products
• What the “Hook Model” explains about how consumers form buying habits
• How the Hook Model hooks customers on your product or service
Take-Aways
• Habits are behaviors you carry out with “little or no thought.”
• Companies that produce habitforming products reap multiple benefits.
• The “Hook Model” is a fourstep process marketers use to “hook”
consumers.
• The four phases of the Hook Model are “Trigger, Action, Variable Reward
and Investment.”
• External and internal triggers instruct people to perform a desired action.
• People respond to triggers by acting in anticipation of a reward.
• Variable rewards are unpredictable, intermittent rewards that satisfy a
craving or solve a problem.
034
12/18/2016 Hooked Summary | Nir Eyal | PDF Download | MP3 Audio Book
• People are more likely to develop a habit around a product when they invest
time or effort in using it.
• Businesses exploit users’ pain by positioning products or services as oases of
relief.
• The “Manipulation Matrix” helps you analyze your motives for using the
Hook Model.
Summary
HabitForming Products
You carry out habitual behaviors with “little or no thought,” but when your use of
a product or service – like a smartphone or Twitter – becomes a habit, the
company behind it scores a meaningful win. Marketers try to engineer the
“Like all technologies, customer experience so that it becomes ingrained because a product’s success
recent advances in the requires loyal, habitual users. Smartphones, tablets and game consoles give
habitforming potential consumers aroundtheclock access and connectivity. Marketers have two tools –
of digital innovation that constant entrée and detailed personal information gleaned through data
have both positive and mining – for propelling the buyer behavior that most benefits them: Forming a
negative effects.” habit.
The Habit Advantage

Investors calculate a company’s “customer lifetime value” (CLTV) to determine
its overall value. CLTV is the amount of money a business expects to make from a
single customer during his or her lifetime. The more habitforming a product is,
the higher its CLTV. As consumers incorporate a product into their daily lives,
they become less resistant to increases in its price. Loyal users tell their friends
about products they routinely enjoy and recommend them via social networks.
Wordofmouth advertising is credible and cheap.
“The technologies we use
have turned into Companies marketing habitforming offerings stave off competition. New
compulsions, if not full entrants find it difficult to change buyers’ embedded behaviors, even when they
fledged addictions.” produce a superior product. For example, keyboards still use the QWERTY
configuration, designed in the 1870s for the first typewriters. Better layouts come
to market, but they don’t catch on. Once people become proficient at touch typing
on a QWERTY keyboard, they are loath to learn a new, even if more efficient,
system.
The “Habit Zone” is the sweet spot between the frequency of a behavior and its
“perceived utility,” the ease and convenience of continued use. Products and
services fall into two metaphorical categories: “vitamins and painkillers.”
Vitamins are nicetohave, satisfying products that users can live without. People
feel good about taking vitamins but don’t feel terrible if they miss a day. People
“Hooked users become feel pain if a painkillercategory product is out of reach. When something
brand evangelists – becomes a habit, doing without it hurts. For example, some consumers can’t
megaphones for your imagine a morning without coffee or a day without Twitter.
company, bringing in
new users at little or no The “Hook Model”
cost.” All businesses can use a fourstep process – the Hook Model – to “hook”
consumers on their offerings. People who become hooked will use that offering
repeatedly, making advertising and marketing less necessary. The four phases of
this model are:
1. “Trigger: The Actuator of Behavior”

Triggers spark your behavior. They’re cues telling people what action to take.
Triggers are either external or internal. When you see, smell, taste, hear or touch
an external trigger, it prompts a reaction and points clearly toward a particular
035
act. For example, the login button on a home page is an online trigger. External
“Companies that suc triggers fall into four categories:
cessfully change
behaviors present users • “Paid” – Advertising consists of paid triggers. Companies buy advertising
with an implicit choice to attract new users to convert them into loyal customers.
between their old way of • “Earned” – Companies invest time and energy to secure earned triggers.
doing things and a new, Publicizing an event or producing a video in hopes that it will go viral are
more convenient way to earned triggers.
fulfill existing needs.”
• “Relationship” – Wordofmouth recommendations from one person to
another, or via social networks, are relationshipbased triggers.
• “Owned” – With a user’s permission, a company could provide reminders.
For example, a smartphone owner might permit an app company to send an
upgrade notice about its app.
Internal triggers are subconscious associations between an action or thought and

an emotion. Thus, boredom makes you check your email. People form habitual
reactions in response to the “tiny stressors” they experience through the day.
Businesses exploit users’ pain by positioning products or services as oases of
“Only by understanding relief. Consumers habitually reach for products and services that provide comfort
what truly matters to or solve their problems. Businesses must understand the internal triggers that
users can a company cause people to use their products so they can tailor external triggers that propel
correctly match the right users to engage.
variable reward to their
intended behavior.”
2. “Action: The Behavior Done in Anticipation of a Reward”
Action is what a trigger seeks to spur. An action is how you behave because you
expect an award. In the context of habits, people act instinctively, with almost no
deliberate thought. Dr. B.J. Fogg conducted research at Stanford University to
determine what instigates people to act. You can express his “Fogg Behavior
Model” in the formula “B=MAT” – that is, “Behavior” occurs in the presence of
sufficient “Motivation,” and “Ability” plus “a Trigger.” For example, you hear your
cellphone ring. If you buried it at the bottom of your handbag or briefcase, you
may let the call go to voice mail. Perhaps your phone is set on silent and you never
hear the ring. Some element of the formula is weak or missing, preventing an
“Companies increasingly action from taking place.
find that their economic
value is a function of the Fogg groups human motivators into three broad categories: “To seek pleasure and
strengths of the habits avoid pain; to seek hope and avoid fear; to seek social acceptance and avoid
they create.” rejection.” Advertising capitalizes on these motivators. Sexual images in ads, such
as beautiful actresses promoting GoDaddy.com, provide the promise of pleasure.
Shots of men gathering to drink Budweiser and cheer for their team demonstrate
social acceptability.
The actions that form habits require little or no mental effort. The action the
trigger elicits should manifest its simplest form. Several successful digital
networks, such as Twitter, Facebook and Google, recognized the importance of
making the user experience as simple as possible. Evan Williams, one of the
founders of Twitter and Blogger, summarized this approach. “Take a human
desire, preferably one that has been around for a really long time...Identify that
“Hooks can be found in desire and use modern technology to take out steps.” Conducting a search on
virtually any experience Google requires little time or effort. The ease of taking a photo with an iPhone
that burrows into our made it the popular choice.
minds (and often our
wallets).” Simplifying the decisionmaking process through “heuristics” or “mental
shortcuts” increases the habitforming nature of your offering. Marketing
heuristics include insinuating scarcity, putting items on sale and shaping the sales
environment to create an appropriate context.
3. “Variable Reward: The Hook’s Ability to Create a Craving”
036
Craving is how the Hook Model builds your desire. Once people act, they
experience the relief of having their problem solved or their urge satiated.
Research into reward behavior shows that anticipation of an award activates the
“Ubiquitous access to the
web, transferring brain’s nucleus accumbens, or pleasure center. However, as people come to expect
greater amounts of rewards, incentives begin to lose their allure. Introducing variable payoffs – that
personal data at faster is, unexpected or intermittent rewards – revives activity in the brain’s pleasure
speeds than ever before, center.
has created a more
potentially addictive Variable awards fall into three types: “the tribe, the hunt and the self.” Tribe
world.” rewards tap into the desire to connect socially and to feel included. Social media
sites such as Pinterest, Facebook and Twitter, and computer games such as
League of Legends, deftly exploit this universal craving. People visit Facebook
repeatedly to see if their friends “like” their posts. League of Legends players set
out to earn “honor points” in recognition of their fair conduct.
Hunting for food and shelter is a deepseated human behavior, so hunt rewards
are satisfying. Gambling online or scrolling through Pinterest provides rewards
associated with gathering “resources or information.”
People feel compelled to overcome obstacles; that selfrewards them in the form
of feelings of accomplishment and performance satisfaction. Playing video games
“Unfortunately, too
is an obvious expression of this need. However, few products offer “infinite
many companies build
their products betting variability.” Even the most popular, exciting offerings become commonplace with
users will do what they use and repetition. Keeping variable rewards fresh requires the continuous input
make them do instead of of new ideas, experiences and content.
letting them do what
they want to do.” 4. “Investment: The User Does a Bit of Work”
When you put in effort, you become more committed to your purchase. People are
more likely to develop a habit around a product or service when they invest in its
use. Even small investments of time or energy forge strong bonds. For example,
IKEA knows that customers love their furniture more when they assemble it, than
when they purchase it readymade.
Once people commit to a behavior, they’re more likely to repeat it in the future.
For example, people may at first be reluctant to erect a sign in their yard
promoting a political candidate, but after the initial time, their resistance drops
substantially.
“The more users invest
in a product through People avoid “cognitive dissonance,” the need to revise an established perception
tiny bits of work, the to fit into a comfortable context. The fable of the fox declaring grapes too sour
more valuable the when he couldn’t reach them is a classic example of cognitive dissonance. In
product becomes in their terms of product investment, people are willing to try something other people
lives and the less they enjoy, such as drinking coffee or alcohol, even if their first taste is unpleasant.
question its use.”
The more time and energy users invest in a product, the more likely they are to
keep using it. The accrual of “stored value” in the form of “content, data,
followers, reputation and skill” keeps them hooked. For example, once people
build a music library on iTunes, they’re reluctant to leave and begin again with
another provider. When users post their résumés on LinkedIn and add data to
their profiles, they are unlikely to switch to another site. People work to build a
good reputation on sites such as eBay, TaskRabbit and Airbnb. Once they’ve
achieved a high rating, they’re averse to giving it up.
The Hook Model is circular – embedded external triggers encourage users to

“The more effort – either return, strengthening their habits. Pinterest demonstrates the four phases of the
physical or mental – Hook Model in operation. First, the site offers a distraction from boredom by
required to perform the displaying a variety of appealing images. New users enjoy browsing; they
desired action, the less experience social connection by commenting and posting images. As they pin
likely it is to occur.” images, their investment of time engenders loyalty; their stored value keeps them
clicking. When other people contribute or comment on their posts, that provides
an external trigger that retains users through another cycle.
037
Assess and Follow Up

Advances in neuroscience, coupled with technologyenabled connectivity and big
data mining, make marketing’s behaviorchanging techniques more targeted and
effective. If you use the Hook Model, examine your motivations to make sure your
purposes are altruistic and that you are not exploiting others for your own
advantage.
“Without variability we The “Manipulation Matrix” is a fourquadrant chart that helps you analyze your
are like children in that motives for using the Hook Model. Which quadrant describes you?
once we figure out what
will happen next, we • “The Facilitator” – Creators who believe their product or service makes a
become less excited by positive contribution and who would use it themselves.
the experience.”
• “The Peddler” – Sellers who believe their product has value, but may not
use it themselves. Advertising is an example of peddling.
• “The Entertainer” – It doesn’t damage anyone to create art and
distraction for people’s enjoyment, but entertainment is a “hitsdriven”
business.
• “The Dealer” – Manipulators who use their offerings as a way to make a
buck.
Assess whether your offering has habitforming potential by testing your idea
against the Hook Model. Continually evaluate your hook tactics to review how you
“The products and perform. Experiment with new ideas and strategies, and analyze how well they
services we use
promote the user behavior you hope to elicit. Use the threestep “Habit Testing”
habitually alter our
process for your analysis. First, consider how often you expect a typical customer
everyday behavior, just
to use your product, and what comprises either normal or excessive usage. Next,
as their designers
categorize this use by estimating how many users you need to make your business
intended.”
successful. Then, modify your tactics to turn casual users into devotees with a
habit.
About the Author

Nir Eyal is a videogaming industry and advertising veteran. He writes, speaks and teaches about applied
consumer psychology.
038
12/18/2016 How To Sell When Nobody's Buying Summary | Dave Lakhani
Book
How To Sell When Nobody's
How to sell effectively during a
Buying recession; believe it or not, people do
buy during economic slumps.
(And How to Sell Even More When They Are)
Dave Lakhani
Wiley, 2009
Buy the book
Recommendation
Desperate times call for desperate measures, and, when it comes to selling during
an economic downturn, the survival of your firm may depend on taking some
radical, assertive action. Speaker, author and trainer Dave Lakhani contends that
oldtime sales techniques are no longer appropriate. He recommends alternative,
innovative selling approaches, including some gutsy – though perhaps clichéd –
ploys. Alas, the book is sometimes banal (“The best time to sell more is when
people are buying”) and very selfreferential, and customers may perceive a few of
its sales tactics as overly pushy. Nevertheless, getAbstract finds that Lakhani
provides interesting recommendations and numerous valuable web resources for
salespeople who want to establish or embellish their personal brands, connect
with prospects and operate more efficiently. These pointers make the book a
worthwhile addition to any sales professional’s library.

• Why conventional sales methods do not work during a recession
• How to energize your sales
• How to create a personal brand with online tools
• How to use social media to connect with prospects
Take-Aways
• An economic cycle has four phases: “expansion, prosperity, contraction” and
“recession.”
• Successful boomtime sales tactics will not work during a recession.
• When times are tough, weak salespeople leave the field. This means
increased sales opportunities for industrious, creative sellers.
• Identify the people who are spending money on what you sell, and figure out
how to reach them.
• Apply “fearsome focus” to all your sales activities.
• Establish a website and include your “professional bio, testimonials, client
list” and “blog.” Also insert a “Contact Me link.”
039
• Offer webinars and teleseminars to build your credibility and showcase your
expertise.
• Constantly remind prospects that you are out there and available. Develop a
campaign that methodically, continually “drips” your sales message on
prospects.
• To sell to a crowd, focus your pitch on the influential “consensus creator.”
• Selling during a recession is not easy, so “even if you are tired, make one
additional call on a prospect today.”
Summary
Not Selling? Better Change Your Approach

An economic cycle has four phases: “expansion, prosperity, contraction” and
“recession.” Selling during growth and boom phases is easy. Everyone jumps
aboard the sales train and enjoys the party. But selling during contractions and
“One thing every profes recessions can be a struggle. Conventional sales techniques that worked well
sional salesperson can during the good times will not succeed in a recession. Thus, many salespeople
be sure of is that who continue to use their triedandtested sales methods may believe that
throughout their “nobody’s buying” and decide to quit the field. However, economic downturns
careers, many things offer “entrepreneurial salespeople” a golden opportunity. Industrious sellers can
will change; there will fill the sales vacuum other vendors leave behind. These survivors must ask
be exceptionally good themselves simply, “What else is there that we could be doing that everyone else is
times, very average not doing?” Perform some “highvalue, highimpact actions” to jumpstart your
times and some really
sales. Follow this fiveday plan to gain momentum:
tough times.”
• Day one – Contact 25 inactive clients. Get them to work with you again. If
they have grievances with your firm, assign someone to resolve them. Phone
10 active clients. Offer to sell them a product or service upgrade. Contact a
noncompetitor and swap leads. Don’t leave the office without making all
your “client followup and prospect calls.”
• Day two – Call 10 people who could potentially give you a referral. Greet
them in a friendly way and use this script: “I’m calling because it is a tough
time in our industry, and I wanted to know who I could refer to you right
now that would help your business grow. I talk to a lot of people every day
“Tough times present and I want to be able to send you some good referrals.” Then, after listening
real opportunity for for to their responses, politely ask for a referral in return. Follow up with any
wardthinking sales people whose names you receive.
teams.” • Day three – Set up three boxes of a dozen doughnuts each. Gift wrap them.
Take them to three different prospects. Ask that each prospect personally
accept delivery. When he or she is in front of you, say: “I’ve been trying to
reach you and haven’t had any luck...so I thought I’d take the sweet
approach.” Then ask for a telephone appointment.
• Day four – Learn all that you can about your “top 25 prospects.” List ways
you can help each one, and think of novel techniques for getting in touch.
• Day five – Contact five customers who are pleased with you and your firm.
Discuss how else you can be of service. Plan to attend a couple of upcoming
networking events.
“Economies and
industries change; that’s Exploiting Internet Tools to Garner Sales
not your fault. But
Once you have followed the fiveday plan and reenergized yourself, you need to
responding to the
rethink your attitude. You must adapt your sales strategy to the changes in your
change profitably is
industry and the economy. Don’t ask, “What can I sell to people who have money
your responsibility.”
to buy today?” Instead, ask, “How do I find the people who have a need and a
capacity for buying the product I have to sell?” Practice “fearsome focus” to attain
040
your goals. This involves using the “45/15 formula”: 45 minutes for intense
concentration and 15 minutes for ancillary tasks. Condition your colleagues to
respect your need to focus. Don’t let them interfere in any way.
Now set yourself up online. Purchase a domain name, preferably yourname.com,

if possible. A website gives you credibility. Keep it simple. Include your web
address on your business cards and in your emails. Incorporate these items into
your website:
“There is always a
crowd of people in any
• “Professional bio” – Use this document to tell people who you are. Lend
economy who will find
the money to buy a a personal touch by providing information about your hobbies and your
product or service that family.
makes their lives easier, • “Testimonials” – Add a page called “What My Clients Say” and link to it.
their riches more sure or Fill it with glowing quotes from your customers. Publish video testimonials.
their job secure.” Shoot them yourself and use free videoediting software to polish them.
Upload your videos to your website and to YouTube.
• “Client list” – Name all the firms you have sold to in the past on this page.
• “Contact Me link” – Include your contact information so that customers
can get in touch with you. Your email address should have the format
[email protected]. This prevents people and companies from using
“spam robots” to collect your email address in order to send you junk mail.
• “Blog” – Consider this your “online diary.” Communicate about subjects
your customers will find interesting, including how your products or
services can help them. In the headlines of your blog posts, use keywords
“Twentiethcentury that your prospects will likely enter in search boxes. That enables them to
selling techniques are find your posts. Plan to write at least three entries every week for the next
dead, but salespeople three months.
are trying to ignore its
rotting corpse in Your website is just one way to showcase your skills. Teleseminars also help you
boardrooms and demonstrate your expertise. Various online services facilitate these conferences.
business lunches around For example, Freeconferencecall is a “conference bridge” that allows you to hold a
the world every hour of
teleseminar with at least 96 people on the line. Another way to draw attention to
every day.”
your firm is to develop bylined articles on important industry topics. Post them
online at Ezine, and send them to trade journals and their blogs. Creating white
papers is also a good approach to gaining exposure.
Use the internet to create online presentations and webinars. Develop a strong
pitch outlining “your most powerful proposition.” Then break it down into
PowerPoint slides. Include a personal photo, as well as a picture of the product.
Upload your presentation to YouTube and provide prospects with the link so they
can watch it. LandBankNation employs this approach very effectively. Use
Sliderocket to “automate your PowerPoint presentations online” and Ustream to
create live videos at no cost. Email is an excellent communication tool for staying
“You don’t have to work in touch with prospects and clients. To set up email promotions, consider using
harder. You’ve got to the AWeber site.
work harder at working
smarter.” (Scott Marker,
author and salesperson) Connect with Buyers
Where should your sales focus be during a recession? You will find the answer by
asking yourself this question: “Who is still spending money on what I sell, and
how do I connect with them?” Use social media to reach prospects. Follow this
plan, courtesy of Dr. Rachna Jain, an expert in social marketing:
• Decide what social media resources will help you and how you will measure
results.
• Develop an ideal client “DPT profile.” This concerns demographics (age,
income, and so on), psychographics (motivational traits) and
technographics (the degree to which your prospects will “be involved in the
“When people say no, social media space”). When you understand your DPT profile, you will know
they are often covering where to look for clients in “the social media sphere.”
041
another objection that • Find your ideal clients online with search engines.
they are not going to
• Use Google Analytics to “track” your blog.
share. But when you
offer them a different • Ask clients to explain “the problems for which you sold them solutions.”
option at a different Employing their exact terminology, use Google Alerts to set up notifications
price or with different for keyword phrases. Several sites, such as Serph and Keotag, help you
terms, they will often establish RSS feeds for your keywords. Create profiles on social media sites,
say yes.” such as Facebook and LinkedIn.
• Begin “following people” on Twitter and posting your own tweets.
• Demonstrate your expertise by responding to questions at Askville.
• Place ads for the products or services you sell on Craigslist or Backpage.
Can You Tweet, Tweet, Tweet?

Twitter is a particularly useful tool for salespeople. Give it a try. Enter some
“industry jargon” in its search tool. You will get pertinent results. Twitpic enables
you to send cellphone pictures over Twitter, and Nearbytweets helps you locate
other Twitter users near you. If you input industry keywords and phrases,
“You still need to go to
Monitter will display relevant online conversations in real time. Participate in the
trade shows, mixers,
chats that you find most promising.
Chamber of Commerce
meetings, and the like,
but you need a different Develop a “Drip Campaign”
strategy. You’ve Constantly remind prospects that you are out there and available. Do so through a
probably rightly drip campaign by “systematically and consistently dripping some sales message”
identified that decision on your prospects until they are ready to buy. Stretch it out over 12 to 14 months.
makers often don’t show Here is a 12step example of how such a campaign works:
up at those events – but
influencers do.” 1. Phone the potential client to introduce yourself. Afterward, have the
Sendaball website deliver a “big red ball” with a personal message from you.
This will grab the prospect’s attention. Follow up with another phone call.
2. Send a media kit to the prospect. Include copies of your articles, transcripts
of your speeches, and so on. Gift wrap the package so the recipient will view
it as valuable.
3. Mail a promotional DVD that features instructional materials on how to use
your product or service.
4. Send a postcard with a friendly reminder to contact you.
5. Post the prospect a white paper you have developed on some industry topic.
“If you are not currently
fully exploiting today’s 6. Send a “video email” stating that you look forward to meeting with the
technology, you are prospect.
leaving money and sales 7. Use Postcardbuilder to create a nice card for the prospect. Include his or her
on the table every day.” picture, if you can.
8. Forward testimonials about you from three respected customers.
9. Ensure that the prospect receives a “handwritten birthday card” from you.
10. Send another DVD in which you present on an important industry topic to a
large, enthusiastic audience.
11. Fax the prospect a humorous note that encourages him or her to get in
touch.
12. If none of the above works, send a fake obituary with this message: “After a
long and courageous battle with lack of connection syndrome, [your name]
“Technology explodes gave up the fight...Send your condolences by calling [your phone number].”
territories and opportu
nities by putting your “Breaking the Trance”
presentation in front of Many people are stuck in trances provoked either by “their own beliefs and
the client immediately.” prejudices, or by the media.” To sell to them, pull them out of their stupor.
Acknowledge their beliefs, and then supplement them with concepts they will be
able to accept readily. Link your ideas to theirs. Incite your prospects’ curiosity
042
about your products or services. “Reset” their trances to reflect favorably on your
own commercial offerings. To do so, use a “responsive narrative” that matches
your prospects’ aims and goals. For example, “As I was listening to you talk, it
occurred to me that for you to achieve X, a certain series of things would have to
be in place...When clients successfully implement our product, they experience
XYZ. I believe that when you have that experience, you’d be complete as well.”
When the prospect decides to buy, plan to “upsell” him or her. Offer something
“At the end of the day, extra for “only a small additional fee.” Thus, the buyer gets more value at just a
being creative is about slightly higher cost, and you get a more profitable sale.
really thinking through
how you might engage
the attention of a certain “Selling the Room”
person long enough to Presenting to a room filled with people is always tough. If you don’t win them over
get him to say yes to early, you’re dead. So how do you employ “mass persuasion”? Find the influential
engaging with you.” “consensus creator” in the room by asking probing questions that will reveal his or
her identity – for example, “Who here has been responsible for gathering the
ideas of the group and bringing everything together to date?” Once you have
ascertained who the consensus creator is, work to achieve buyin from him or her.
This person will, in turn, garner everyone else’s support. Get confirmation that
your solution meets the consensus creator’s terms. Stand next to this person when
you make your presentation. Use testimonials to acquire further acceptance.
Embed a “structured call to action” in your presentation. This can include
“discounts, bonuses for early action or other incentives to buy.” Follow up with
these prospects. Often they are not in a position to make an immediate decision.
“The only thing keeping Selling in a recession is a challenge. Therefore, you must develop your own “sales
you from going out and turnaround plan.” Select the individual tips and techniques that will work best for
trying one more time is you, and then put them to work quickly. In sales, as in everything else, you must
you.” always be ready to invest yourself to get ahead. So even if you are tired, make one
additional call on a prospect today. Remember: “There is no better cure for a
slump than a sale.” Get out there and earn it.
About the Author

Dave Lakhani, a sales trainer, entrepreneur and speaker, is president of a public relations and marketing firm.
043
12/19/2016 How to Think Like a CEO Summary | Debra A. Benton
Book
How to Think Like a CEO CEO behavior can be learned, so the
The 22 Vital Traits You Need to Be the Person at the Top job can be earned. Here's how to
walk, talk, think, and act like you're
Debra A. Benton
already the boss.
Warner Books, 1996
Buy the book
Recommendation
Author Debra A. Benton discusses how chief executive officers succeed. She bases
her information on interviews with hundreds of major corporations’ CEOs and
with wellknown leaders and public figures. The experiences of so many CEOs
make the book fascinating. Readers will be intrigued by the many success stories.
Benton also extrapolates and explains the key principles behind the success of
these executives. The book is an excellent, wellwritten guide that includes some
wellknown success principles and some that may be less wellknown. The short,
snappy, easytoread style is accessible. A helpful summary at the end of each
chapter captures the major principles covered. getabstract.com recommends this
book to those on the way up in management, those interested in getting into
management, and those who wish to apply these principles of success in their own
careers.

• Why perseverance ranks among the most important qualities for a CEO
• What eight qualities nearperfect CEOs have
• Why being kind to others is not a sign of weakness
Take-Aways
• To become a CEO, first you need to think like one.
• You have to be confident in your abilities if you are going to make it to the
top.
• Even if you encounter difficulties, keep going.
• Good CEOs are good actors; they know how to play the part they need to
play in different circumstances.
• Don’t try to maintain the status quo. Use your originality to promote
improvement and change.
• Becoming a CEO is like climbing a mountain; you need to learn the ropes
and overcome obstacles as you climb to the top.
• Become a master of style and choose the appropriate style for each occasion.
• Being in control of your attitude is critical, since success in business and life
depends more on mental attitude than mental ability.
044
• Even if you see the big picture, pay attention to details.

• You can make your message more powerful if you use humor, drama, and
style to get it across.
Summary
The Basic Equipment Needed to Become a CEO

You might compare climbing the corporate ladder to climbing a mountain. You
need certain qualities, which are like equipment, to make it to the top. You also
have to be ready to pass through "tricky and scary situations," just as you would if
you were going higher and higher up a mountain. To begin, you first need to
“You need to think like a establish a "firm footing." You also have to "learn the ropes," so you can move
CEO long before you upwards, overcoming difficulties as you go, and take the lead.
become one. People who
make it to the top act To increase your chances of rising to the top, try to understand the CEO who
and think like they are employs you. You will learn more if you work for a top CEO. A better CEO is more
’number one’ before they likely to run a successful organization. Your CEO won’t be perfect, since no one is.
actually become number But you want to work for a "nearperfect chief." A nearperfect CEO has 22 vital
one.” traits. Make these traits your own. Observe them in others. Continually work to
improve these qualities in yourself, so that you get better and better.
Eight Fundamental Qualities

The eight fundamental qualities that nearperfect CEOs have are:
1. They are secure in themselves Nearperfect chiefs have to be secure, to

have the confidence to believe they can make it. Uncertain people don’t get
to the top. Good CEOs want to surround themselves with confident people.
Therefore, they are the ones who will get promoted. A CEO who lacks
confidence will make those around him nervous and uncertain. Thus, act
with confidence to inspire others, whether you feel confident or not. Acting
confidently will make you feel confident, too.
“If you lose control, you
lose. Period.” 2. They are in control of their attitudes Take charge of your attitude. Your
ability to succeed in business and in life depends more on your mental
attitude than your mental abilities. Adopt an attitude that fits each situation,
such as being firm or friendly as needed. Being optimistic and having
positive attitude helps. Remember, you have to be in control of your own
attitude, or others will control you.
3. They are tenacious Top CEOs persevere and overcome obstacles. They
keep going. Even if others discourage you, you should stay on your path and
work toward your goals. Even if you experience disappointments,
frustrations, and setbacks, keep going. However, you should be ready to give
up and cut your losses if you see that something is a bad project or a
mistake. Like a poker player, you should know when to hold them and know
when to fold them.
“Until, and unless, you’re 4. They are continually improving Keep learning, so you know more and
in command of your
more about your job. Learn by talking to people, learn from your mistakes,
outlook, everyone and
and learn from the experiences of others. Think about how you can "emulate
anyone can control you.
effective leaders" and how you can "learn something new every day."
Only people who
manage their attitude 5. They are honest and ethical This is vitally important. You should tell the
avoid being managed by truth, have integrity, be genuine, be fair, and be forthright. Do not engage in
others.” fraud, deception, or artifice to get ahead for yourself or your company. Don’t
intentionally mislead or misrepresent anything or break your promises.
Bring up uncomfortable issues, so they can be resolved, but don’t
exaggerate. You cannot get ahead unless you have a reputation for honesty
and good character. A lack of integrity will generally catch up with you.
045
6. They think before they talk If you think before you speak, you can control
what you say and carefully choose your words. You can express yourself for
the desired result. With forethought, you can avoid repeating yourself and
minimize stuttering or stammering. Remember, at times it may be best to be
silent and not say anything.
7. They are original in their ideas and actions Originality is especially
important in today’s climate of change. CEOs have an advantage in that they
“Keep going until can express their imagination, and be inventive and original. This vital trait
something stops you, is the basis of human improvement and is a necessary part of responding to
then keep going.”
change. Use your originality to find better ways to do things.
8. They are publicly modest about their abilities and achievements As you
improve and achieve, be modest. Avoid being pretentious or ostentatious.
Bragging about what you achieve can turn people off and breed resentment.
You want to be recognized for your contributions, without becoming
arrogant about them.
Practicing Vital Traits That Will Help You Climb

Five vital traits that will help you enjoy your climb to the top are:
1. Be aware of style and use it appropriately Employ the proper behavior and
the appropriate style. Don’t try to be the same way with everyone. Effective
“Persevere through dis styles include being decisive, candid, or collaborative. Listening to others is
appointments, setbacks, effective, but being antagonistic and lacking empathy is not. Become aware
frustrations, and of your own style. Don’t try to guess another person’s predominant style,
inequities. Those who especially if he or she is in a high level position. Such people are better at
persevere will succeed.” concealing and adapting their style than others might be.
2. Be a little wild and gutsy At times, climbing to the top means taking risks.
You need true courage that stems from both reasoning and instinct. You
don’t want to be reckless, which comes from being bold without having
focus and purpose. But you also don’t want to be a coward. Strike a balance;
be willing to push at the boundaries of your comfort zone.
3. Be humorous Humor is important to keep work fun. You want to act in a
cheerful way and be willing to laugh at yourself when appropriate, such as
when you make a mistake. The goal is to be upbeat, while being serious
about "consequences, behavior, and values." Don’t take humor to extremes,
but learn to use it well. It can be a helpful tool in keeping employees
productive.
“Chew on your thoughts 4. Be a little theatrical in the way you express yourself A little drama can help
before you verbalize you make your message more powerful. Effective CEOs have good acting
them. Digest your words skills. They can be comfortable and act their part in many different
as you digest your food.” situations and with many different types of people, even if they don’t feel
like it. Remember, other people are always reading you, just like you are
reading others. By acting, you can present the picture of yourself you want
to present, especially in difficult times when you want to persuade people
that you feel confident.
5. Be detail oriented Pay attention to details. Even when others are working
to implement your ideas, stay alert to what is going on around you. Keep the
big picture in mind. Paying close attention to details keeps you accurate,
which helps you stay honest. On the other hand, inaccuracy can promote
fudging and coverups to conceal mistakes.
The Final Steps for Getting to the Top

“The good CEO takes full The last steps you need to get to the top include these:
advantage of his
position to be inventive, • Good at your job and willing to lead others.
different, imaginative,
• A fighter for your people.
and original.”
• Willing to admit your mistakes, yet unapologetic about them.
046
• Straightforward in how you communicate.

• Nice.
• Inquisitive and curious, so you ask questions.
• Competitive.
• Flexible, so you are willing to adapt and change.
• A good storyteller.
Being good at your job has two facets: hard knowledge, that is technical
excellence, and "the soft side," your ability to relate well to others. If you are good
“The simple way to get with people, you can learn the technical details. The key to success is getting the
ahead in business is to information you need from people, not from computers. To do this, you need the
give top performance ability to understand and influence others effectively. It helps to be a specialist in
today and significantly one or two key areas important to your company, such as marketing, engineering,
improve that or technology. Then, you can learn other key areas. Being willing to lead means
performance being ready to "step out front," take risks, and lead the company.
tomorrow.”
You should also be ready to fight for your people and back them up. Be loyal
downward; spread credit to others in the organization. You need to support
people and give them credit, if you want them to support you.
Be willing to admit your mistakes, yet be unapologetic about them. If you make a
mistake, be willing to admit it. Then you can correct your mistake and move on.
It’s fine to make a mistake once, but you don’t want to make it again. A repeated
mistake demonstrates a lack of attention to detail or a poor attitude. However,
while you should admit mistakes, don’t be apologetic about them. It can be fine to
apologize, when an apology is called for, but be unapologetic in your attitude.
Communicate clearly and straightforwardly to others. Write or talk in a "plain,

“Never be satisfied with simple manner." Giving clear instructions helps employees do what you want.
simply maintaining the Straight talk also inspires trust in what you say. And, when you say what you
status quo. You lose mean, you avoid misunderstandings.
originality if you are
satisfied with the present Being nice will help you get along with others as you move to the top. You can still
condition. Originality is make hard decisions and be strong in getting the job done, but if you are amiable
the principle source of and pleasant, people will be more responsive to what you want.
human improvement.”
Being curious and inquisitive is also critical, since you want to ask questions and
learn all you can. Seek the answers about anything you don’t understand. In
asking questions, try to learn new information or get old information clarified.
Phrase your questions in a conversational, comfortable way. When questions
seem like attacks, people can feel defensive or belittled.
You also want to be competitive, since it is good to have a "healthy fighting spirit."
This will help you in your personal and professional growth, and will enable you
to overcome obstacles and achieve victories. However, choose your battles, so you
engage in only those worth fighting. Compete fairly. Don’t engage in "overly
zealous, destructive combat," since you may have to work with your opponents in
the future.
“Remember the four Be willing to adapt and change. With flexibility, you can adjust your responses as
minute rule. Be aware of circumstances change. This doesn’t mean being "wishywashy or undisciplined."
and consciously control
Rather, it means being willing to bend and not stubbornly sticking to a position
your actions for at least
when the situation requires adjustment.
the first four minutes of
any encounter.”
Being a good story teller means that you are able to use stories and anecdotes to
help you communicate. You can dramatize an example or paint pictures with
words to make what you say clearer, more memorable, and more useful to others.
047
12/19/2016 Insight Selling Summary | Michael Harris | PDF Download
Book
Insight Selling
Tell stories that lead buyers to the
Sell Value & Differentiate Your Product with Insight value you offer, so they discover it for
Scenarios themselves.
Michael Harris
Sales & Marketing Press, 2014
Buy the book
Recommendation
The Internet provides such comprehensive product information that B2B buyers
needn’t deal with B2B sellers until quite late in the sales cycle. At that stage,
customers don’t need featuresandbenefits information; they need specific
insights told through stories that are tailored to their situation. Salestraining
expert Michael Harris explains how B2B salespeople can deliver these insights for
maximum results. His technique transforms B2B prospects’ classical wariness of
sales representatives into enthusiasm for learning about and buying what they
sell. Harris backs up his recommendations with impressive research. He explains
why salespeople must be able to tell good stories to win customers. Ironically, the
author is a good instructor, but he could be a better storyteller. In most chapters,
he explains his point of view quite satisfactorily, but in some, he’s confusing and
even contradictory. When Harris is on target, his advice is very useful.
getAbstract recommends his potent approach to B2B salespeople who need to
know how to tell their product’s story for maximum sales impact.

• What an “insight scenario” is and how it works
• How salespeople benefit when they tell insight scenarios
• How to develop and use these scenarios to make sales and become a trusted
adviser
Take-Aways
• Readily available product and services information on the Internet
complicates B2B sales.
• Today’s B2B buyers don’t need B2B salespeople to tell them a product or
service’s features and benefits; they need sellers to offer specific, useful
insights.
• Your insights should make the buyer stop and think; they should not
challenge the buyer.
• “Insight scenarios” differentiate your offering and present its value via
storytelling.
048
• An insight scenario is a story that describes how your product solved a

parallel customer’s difficult situation.
• An insight scenario lets buyers independently recognize the value of your
offering.
• SAP and Microsoft use insight selling and created “Chief Storyteller”
positions.
• Insight scenarios should be concrete, emotional and never confrontational.
• An insight scenario should be 250 to 350 words long, and should take 90 to
120 seconds to tell.
• Insight scenarios enable you to shift from salesperson to respected adviser.
Summary
Insights, Not Product Details

In sales in the past, buyers relied on salespeople for the information they needed
to make intelligent purchase decisions. Now, thanks to the Internet, buyers can
easily research alternative products and services and compare prices. Today’s
“Humans have told buyers rarely deal with salespeople until they have progressed through 60% of the
insight scenario stories sales cycle. The tendency of buyers is to commoditize B2B products and services
visually for 100,000 and to insist on discounts from sellers. Buyers do not want salespeople who “show
years, orally for 10,000 up and throw up” litanies of features and benefits, or who irritate them with 20
years and in writing for questions. Buyers seek useful insights that enable them to make solid purchase
6,000 years.” decisions. They “do not have the time or expertise” to understand the best
options. They find it difficult to filter and make sense of the overwhelming
amount of information on the Internet. Buyers can’t determine the “generic value”
of particular products or services. Many don’t purchase or they purchase based
only on price.
“Insight Scenarios”
An insight scenario is a very brief story about a company you rescued from an
emergency through the use of your product or service. A wellconstructed scenario
reveals your product’s “hidden value.” Because an insight scenario is about
“Listening…is the least someone other than the buyer, he or she can accept it without feeling challenged
developed skill in sales, or defensive. Think of an insight scenario as a “Trojan horse” that gets your sales
because we all think we message over the buyer’s “defensive wall.”
do it. Listening is more
than just listening to Insight scenarios are not the same as “value propositions,” which buyers
someone’s words: It is automatically discount. Insight scenarios also differ from case studies. Case
listening without filters studies work well late in the selling process by providing compelling rationales for
or judgment.” buying decisions. But case studies have no place early in the sales process. They
overload skeptical buyers with too much information.
“Insight Dials”
Sellers must communicate value, differentiate their offerings and show customers
a clear route to buying. To do this, call upon three insight dials:
1. “Contrast” – The seller illustrates the contrast between a buyer’s situation

before purchasing the product or service and after. The greater the
demonstrable contrast, the greater the value the story conveys to your
offering.
“Salespeople no longer
2. “Listening” – Buyers’ visions are like movies playing inside their heads. To
hold the keys they once
understand that movie and confirm it with their insights, sellers must listen
did to the information
carefully to buyers.
kingdom. Today, to add
value, salespeople must 3. “Clarity” – After communicating compelling beforeandafter insight
do more than just scenarios, sellers should question buyers so they can compare their
049
provide information; situations to those scenarios. Buyers’ answers should illuminate their
they need to provide “beforeandafter picture.” After the buyer identifies a problem, ask a
insight.” followup question: “And then what happens?” Questioning lets the buyer
“take your product [or service] out for a virtual test drive.”
Using Insight Scenarios

By using insight scenarios, salespeople can deliver an “‘Aha!’ moment” that
reframes their prospects’ buying vision. The insights you share with your
prospects will not perform in terms of sales results unless you craft your stories to
reflect your indepth understanding of how your customers and their competitors
make money.
Insights should not become “free consulting.” Avoid this by referring only to your
“Tell a story to hear the
product or service’s singular capabilities. Insights should challenge the buyer’s
buyer’s story.”
mindset – but never challenge the buyer. A challenge might provoke a customer
to become defensive. An insight scenario delivers a telling moment of revelation
that engages your consumer. These brief stories about other customers recount
how your product or service moved them from bad situations to good ones. Your
story lets buyers draw a new conclusion about how your offering might improve
their firm’s situation.
Asahi Glass
Maxine, the supply chain director of Asahi Glass, did not know which orders
would deliver the most profit and which might be unprofitable in real time. Some
“Before sellers can close sales orders that initially looked profitable turned out to be losers. Salespeople
the value gap with their placed orders without considering Asahi’s current production capacity and
product, they first have without knowing at all how one order might negatively affect another.
to open it. The
salesperson cannot lead Maxine wanted a tool her company’s salespeople could use to gain “a more
with value, but must… dynamic view of profitability” to inform their glass sales. A supposedly “profitable
lead the buyer to the Toyota order” ended up being hugely unprofitable, due to potential “delayed order
value.” penalties” that forced Asahi to fly parts to the production plant.
Maxine found a solution with the Advance Schedule Corp. The company provided
Asahi with a tool that evaluated orders based on production capacity and that
tracked the orders’ impact on other orders. The company’s salespeople liked the
tool. They could “pool their orders” and use price comparisons to generate
additional profitable sales.
Insight Scenario Benefits

When you present your compelling insight scenario, immediately segue from your
story to the buyer’s story. Say: “That’s enough about client X, what’s your story?”
“A salesperson has to be Include two to four insight scenarios in your conversation during your sales
sure…not to provide ‘free meeting with a client.
consulting,’ and then
have the customer buy An insight scenario has these six advantages:
the product cheaper
from a competitor.” 1. “Puts the customer’s ego to sleep” – Since insight scenarios do not
challenge buyers, they don’t feel pressured, and they will listen to what you
say.
2. “Makes the customer care” – Insight scenarios deliver the context that
helps clients understand why it makes sense to buy from you.
3. “Generates value” – Insight scenarios are word pictures. They
demonstrate that a situation the buyer regards as acceptable, or at least
bearable, is really quite unproductive. An effective scenario shows that only
your product or service can provide the specific solution the customer needs.
4. Remains “memorable” – Facts do not evoke emotion. Add emotion to
“To buy, the customer your facts through storytelling to move customers and help them remember
must…think an offering your information.
is right, but more
050
important, the customer 5. Tells a story – People have communicated important information through
must feel…it is right.” stories (the insight scenario format) since prehistoric times. Story telling is
“hardwired” into your DNA. Both SAP and Microsoft use insight selling,
and both have established “Chief Storyteller” positions.
6. “Sharpens the saw” – Through sales coaching, you can use insight
scenarios to uncover gaps in your sales teams’ knowledge of your products
or services. Coach your salespeople to create insight scenarios “in just 10
minutes per week.” Have them practice developing twominute, memorable
stories about their customers’ challenges. Make sure these stories are brief –
250 to 350 words – and feature clear beforeandafter contrasts. Before
creating their stories, your salespeople must develop a “helicopter view of
the customer’s world.” They must view a client’s world in totality, including
“According to a recent
survey by Sales its markets, competitors and challenges. Without a comprehensive
Benchmark Index, over understanding of the customer’s situation, a salesperson cannot transform a
60% of sales opportuni prospect’s thinking.
ties end with the buyer
deciding to stick with the Successful Insight Scenarios
status quo and not Insight scenarios simply are stories describing how your offering solved specific
buying.” problems for people in the real world. An insight scenario does not discuss
features and benefits. To be successful, however, it must meet three criteria. It
must be “nonconfrontational,” concrete (that is, it supplies the necessary context)
and “wrapped in emotion,” which is “necessary for decision making.”
Developing an insight scenario involves seven steps:
1. “Why?” – Understand the purpose of your insight scenario. It should

dramatically spotlight value for the buyers. It should demonstrate the gap
between the space where the buyers currently operate (in your scenario, this
space is bad), and the space where they will operate (in your scenario, that
“Because an insight will be very good), thanks to your product or service.
scenario is about
someone else, the 2. “Setting” – Introduce your insight scenario to the buyer. Say, “Let me tell
customer does not feel you about Paul, the VP of finance of a manufacturing company who was
attacked…that allows looking to reduce inventory costs.”
the customer to draw 3. “Complication” – Many buyers believe they are doing fine and have no
their own conclusions.” reason to change. Dissuade them. You don’t want buyers to think a problem
your product can solve is only “ankle deep.” Instead, you want them to
believe they are drowning in the middle of the ocean, and you are the rescue
boat. The complication is the crucial part of your insight scenario. To
characterize the enormity of the problem the buyer faces, use a “simile,
metaphor or an analogy.” Create the maximum amount of contrast between
the buyer’s current situation and how your offering will change and fix it.
4. “Villain” – Every dramatic story needs a bad actor. Your villain could be
“changes in the status quo, economic times, market conditions” or the
“competitive landscape.”
“Doctors and salespeople 5. “Turning point” – This is the moment when the buyer understands that
will tell you…customers remaining with the status quo will cost more than purchasing your service.
and patients do not 6. “Resolution” – Demonstrate how, in your story, your solution came to the
make good decisions on rescue and solved the problem facing the company. Keep this portion of the
their own.” story brief. Show simply how buyers can use your offering to fix their
problems.
7. “Questions” – The purpose of the insight scenario is to learn the buyer’s
story. The most important part of this story will be the buyer’s “oil spills” –
the primary problems you can fix. Ask questions to help buyers discover
their story.
Incorporating Insight Scenarios
051
Incorporating insight scenarios into your sales process – and using them during
“An insight scenario [is] your meetings with buyers – involves seven steps, all “salesmethodology
a flashlight… to neutral”:
illuminate hidden
value...Create an insight 1. “Value assumption” – Present “three to five value hypotheses.” You can’t
scenario to make it provide fresh insights about the client’s “known business issues” that you
known.” elicited during an exploratory discussion. The value assumptions you
introduce should result in a meaningful dialogue. Introduce benchmark data
or other pertinent information.
2. “Listening for hidden value” – Listen carefully to everything the buyer
says, not only to explore the buyer’s situation, but also to identify value the
buyer “has not yet fully recognized.” Learn everything you can about the
customer’s buying vision. Stay “completely present” as you listen.
3. “Increase contrast with insight scenarios” – Do not directly discuss
buyers’ “value gap,” or their commercial problem. Instead, introduce an
insight scenario. Your goal is to get buyers to recognize themselves in your
“Many buyers can now story. You want buyers to assume ownership of their problems. Include a
be 60% of the way simply drawn beforeandafter picture. Before: The buyer drowning in a
through a sales cycle problem. After: The buyer benefiting from your rescue. This illustrates the
before they engage a value of your product or service.
salesperson.” 4. “Listen for clarity” – The insight scenario should elicit the “buyer’s
story.” Once the buyer’s vision becomes clear, discuss your specific solution.
If you cannot quantify the negative financial impact of the buyer’s problems,
try to qualify them. For example, ask the buyer to list his problems on a one
toten scale.
5. “Increase clarity with questions” – Ask questions to help buyers “fill in
the details” so they see your value as specific, not generic.
6. “Solution” – By this stage, you hope, the buyer finally sees things your
way. “Present your solution.” Provide the purchaser with “proof points” so
that he or she can justify a purchase.
“The best way to tell if 7. “Echo letter” – After your meeting, send the buyer a letter referring to the
you’ve written a “new buying vision.” Keep in mind that the buyer may share your letter with
memorable insight others.
scenario is to tell it to a
random salesperson and
see if they can repeat it Trusted Counsel
back to you after Insight scenarios allow you to transcend a typical salesperson’s role. An insight
hearing it only once.” scenario lets you lead the buyer to value instead of leading with value. This lets
you become the buyer’s “wise guide.” It transforms the purchaser from active
critic to enthusiastic participant in the buying process.
About the Author

Michael Harris is the CEO of Insight Demand, a firm which teaches salespeople to deliver insights to buyers so
they can sell value and differentiate their offerings.
052
12/19/2016 Jeffrey Gitomer's Little Red Book of Selling Summary | Jeffrey Gitomer
Book
Jeffrey Gitomer's Little Red
Use 12.5 basic principles to become
Book of Selling a sales superstar. (Thirteen would
have been unlucky.)
12.5 Principles of Sales Greatness: How to make sales
forever
Jeffrey Gitomer
Bard Press, 2004
Buy the book
Recommendation
In 1966, Mao TseTung published The Little Red Book of his quotations. Sales
whiz Jeffrey Gitomer now offers its namesake: the Little Red Book of Selling. Like
Mao's book of political orientation, Gitomer recommends that you read his book
of sales instruction over and over. And yet, most of its urgings may not need so
many repetitions, since they are familiar and not hard to understand: "Work
hard!" "Be prepared!" "Kick yourself in the duff" (only, he doesn't say "duff").
Gitomer fans can be assured that this accessible bestseller reinforces his basic
productive teachings about assertive selling attitudes and strategic preparedness,
though it sometimes feeds a little too much into his star "guru" image. For
instance, maybe it wasn't necessary to attribute popup quotes to him in his own
book. getAbstract finds that Gitomer couches real scattered gems of sales wisdom
in just enough jazzy layouts, snappy aphorisms, savvy and silly suggestions, big
type quotations, startling vulgarisms, humorous asides, quaint cartoons, red
headlines, gold bullet points and freewheeling commands to keep even the most
distractible sales student alert.

• Why people buy things
• How to use the 12.5 principles of "sales greatness"
• How following five more axioms can help you become a sales superstar
Take-Aways
• No one likes being sold, but everyone loves to buy.
• You must feel passionate about your product or service to sell it.
• If you cannot conquer the fear of rejection, you have no business in sales.
• Great salespeople make their own luck by working harder than anyone else.
• Control your mind and you control everything else – your attitude, your
success and your sales.
• Prospects don't care about you, your company or your product. They only
care whether you can help them be more profitable.
• Being unprepared for a presentation or client call is a big mistake.
053
• To succeed in sales, you must be willing to work hard all the time.
• The best way to avoid arguing about price is to offer true value and to sell to
the decision maker, not the staff.
• First, people buy you, then your products or services. If you can't make the
first sale, you'll never make the second.
Summary
Why People Buy

To be successful in sales, you must learn why people purchase products and
services. The answer to this vital question is far more important than learning the
answer to another: "How do I sell?" People buy for numerous reasons. Here are
some of the most common:
“Find something that
you love, find something • I have a high opinion of my sales representative.
that you can believe in, • I have faith and confidence in my sales representative.
find an environment
• I know exactly what I am buying and precisely why.
that's fun, and people
you can respect, and • I feel comfortable with the price.
jump in with both feet.” • I think the product or service offers true value.
• I think it will enhance our productivity and increase our profits.
Apply these "12.5 principles of sales greatness" to your work:
Principle 1: "Kick Your Own Ass"

Are you sufficiently motivated to achieve sales success? If not, get out of sales as
quickly as you can. You cannot get where you want to be in sales without
inspiration, passion, hard work and selfdetermination. You must demand far
more from yourself than any sales manager ever would. When things get slow, you
must be ready, willing and able to kick your own butt, and get back on track. You
alone are responsible for your success or lack of it. Never settle for anything less
from yourself than your maximum effort.
“Prospects must first
believe in (and like) the
messenger, or the Principle 2: "Prepare to Win or Lose to Someone Who Is" Prepared
message has no Great salespeople always ensure their success long before they make an actual call
credibility.” on a prospect or customer. Sales masters understand how crucial being fully
prepared really is, particularly when they are visiting a potential purchaser. How
do you get really ready? Learn everything about your prospect's company. This
will help you understand what will truly motivate your prospect to buy what you
hope to sell. Became a bona fide student of your target company. Read its annual
report. Speak with its vendors, competitors, employees and customers. Check its
Web site and request its marketing materials. The more information you possess
about your prospects, the more successful you will be in selling to them. Just as
Mom said, "Do your homework."
Principle 3: "Personal Branding Is Sales: It's Not Who You Know, It's Who Knows
You" Your company has a brand that is vital to its continued success. But what is
your personal brand? Understand one basic rule of sales: The customer always
buys the salesperson before buying the product or service that he or she
“The workday starts the
night before.” represents. You need an individual brand that makes you stand out. So, develop
and enhance your personal image. Become an expert regarding not only your
product or service, but also your field or industry. Plan and conduct your own
personal outreach program. Position yourself so that your local business
community will learn to know and respect you. Get out in front – and stay there.
054
Principle 4: "It's All About Value, It's All About Relationship, It's Not All About
Price" You want your prospects to stop beating you over the head about the issue
of price? The best way to achieve that goal is to offer them true value. Do that and
– like a savvy politician – you can change the terms of the debate. How do you
offer value? Market yourself (and thus your product or service) by communicating
to your prospects how they can increase their own sales, improve their own
operations, and become more productive and profitable. Clearly establish your
“To make the most of a
product or service's basic "value proposition," then communicate it to your
networking event, spend
prospects. Use bylined articles, media appearances and public speaking
75% of your time with
people you don't know.” opportunities to assume a position of expertise within your marketplace. Develop
credibility in the local business community so you can begin to call on CEOs, not
purchasing agents. Organize your sales presentation so it shows exactly how your
product or service will help your prospects make more money.
Principle 5: "It's Not Work, it's Network"

Few salespeople get rich by cold calling. On the other hand, salespeople who use
networking often create fortunes. How do you network? Attend chamber of
commerce events and events sponsored by your local business journal. Join a civic
association or networking club. Become involved with a highprofile charity.
Participate in your trade or professional association. Begin speaking at the local
Toastmaster's club. Start singing at your local karaoke joint. Woody Allen said it
best: "Ninety percent of success is showing up." Not enough time to network?
“All things being equal, Maybe you should find another line of work.
people want to do
business with their Principle 6: "Get in Front of the Real Decision Maker"
friends.” Put first things first. With prospects, the first thing you must do, before worrying
about a presentation or getting an order, is to secure an appointment. When you
are on the phone, don't talk product. Instead, talk appointment. Organize
everything during your telephone call to close for the appointment. Remember:
You can't sell people anything if you can't get in front of them. Just as important,
ensure that the appointment is with the ultimate decision maker. If that's the
CEO, then that's who you want to meet. So qualify, qualify, qualify. Find out who
makes the final purchase decision, and then push hard for an appointment with
that person. Of course, sometimes you must work your way up the chain of
command. But never let an intermediary tell you that he or she will speak to the
decision maker, and then get back to you on a purchase decision. This is an almost
certain recipe for a big "No Sale." Always insist on being present when the
decision maker rules on your product. After all, how can he or she make a
“The less time you spend judgment if you are not available to answer any important questions?
in other people's
business, other people's Principle 7: "Engage Me and You Can Make Me Convince Myself'"
problems, and other Effective salespeople know how to engage their prospects by asking intelligent
people's drama, the questions. Ask stupid ones and you'll never sell anyone anything. Intelligent
more time you'll have for questions cover real concerns, such as company plans or goals, productivity,
your own success.” savings and profits. To relate to your prospects, ask "power questions" that make
them stop and think. Lead into power questions with phrases such as: "What do
your customers feel about...?" "What would be your most important productivity
enhancement concerning...?" Avoid dumb questions, such as: "Are you the
decision maker regarding...?" or "Can I provide you with a quote concerning...?"
Principle 8: "If You Can Make Them Laugh, You Can Make Them Buy"
Selling is a people business. If a prospect likes you, he or she is more likely to buy
what you are promoting. Humor is a good way to get someone on your side. When
people laugh, they become relaxed and their shields go down. Work hard to put a
smile on your prospect's face. He or she will have a hard time turning you down.
Avoid racy, offcolor jokes, or anything concerning gender or ethnicity. In fact,
don't tell jokes at all – tell humorous stories instead. Jokes are contrived but
“Get fired up or get stories are real.
fired.”
055
Principle 9: "Use Creativity to Differentiate and Dominate"

Muster your creativity to separate yourself from your competition. A salesperson
can put creativity to work immediately in three primary areas: 1) initial sales call
questions; 2) personal branding items (voice mail, business cards, fax cover
sheets); and 3) "stayinfront" of the public activities (professional Web page,
promotional email messages and so on). Don't think that creativity is only for a
select group of people who were born artsy. You can teach yourself to become
creative. Study books on the subject. Check out Cracking Creativity by Michael
Michalko or Six Thinking Hats by Edward de Bono.
Principle 10: "Reduce Their Risk and You'll Convert Selling to Buying"
“If you offer no value, all Prospects are always wary about making purchases because they sense inherent
that's left is price.” risk. How do you identify their perceived risks, which may be blocking your sale?
Consider – and try to eliminate – these potential risk roadblocks: "Financial" (Is it
affordable?); "need" (Is this something we truly require?); "performance" (What if
it doesn't do the job?); "service" (Will support be available when I need it?);
"obsolescence" (What if another company introduces something better?); and
"poor decision" (Will the CEO be angry if I purchase this?). Erase your client's
sense of risk with reassurances. Help the client see that the rewards outweigh the
risk.
Principle 11: "When You Say It about Yourself It's Bragging. When Someone Else
Says It, It's Proof." Everyone hates braggarts, but everyone loves testimonials. A
thirdparty who speaks well of you and your product is credible because he or she
has nothing to gain. So how do you get a satisfied customer in front of your next
“Don't sell the price. prospect? What if you could put that person in your briefcase and take him or her
Don't sell the service. with you on your sales call? You can – through videotape! Ask a satisfied
Sell the appointment.” customer to recommend your product or service, and then videotape his or her
statement. Be sure that your video production values are topnotch. Of course,
written testimonials help, too.
Principle 12: "Antennas Up!'

Antennae are paired appendages that insects and some other creatures use as
sensory organs. They may help the animal sense air, motion, heat, vibrations,
touch, and especially smell or taste. Similarly, great salespeople must always keep
their antennae up so they sense, identify and exploit new opportunities. Always be
aware of your surroundings. Are you catching every opportunity to engage a new
prospect? Whenever you are out among people, you have the chance to network.
The person that you meet at an outoftown airport, a sporting event or a
restaurant may one day become your best customer. Remember: A sales superstar
“When you have the is always selling no matter where he or she may be. Keep your antennae up when
pressure to sell, the you are meeting or spending time with your customers or prospects. You want to
prospect senses it and know who in the room has influence? Who might stand in the way of your
backs off.” closing? And, of course, who is the primary decision maker – that is, who has the
power to buy? To know the answers, keep your antennae extended.
Principle 12.5: "Resign Your Position as General Manager of the

Universe"
Psychologists know that given the opportunity, most of us tend to involve
ourselves too much in the affairs of others. Usually prescribing solutions for other
people's problems is much easier than solving your own. Unfortunately, this
human tendency can limit salespeople's effectiveness. The more time you spend
trying to solve other peoples' problems, the less time you are selling. So, get out of
other folks' universes. Focus on your own universe and your sales will increase.
"More Red Sales Thinking"

“Which do you think a To heat up your sales, incorporate five more concepts into your professional
prospect wants, answers development:
to their problems or
your sales pitch?”
056
1. "The Little Salesman That Could" – For nearly 80 years, The Little Engine
That Could has been a beloved children's classic. It tells the story of a small
train huffing and puffing to climb a steep hill, and succeeding through sheer
determination. This is the bedrock of sales. Believe in yourself, never quit,
and you'll be a winner.
2. "The two most important words in selling" – They are "you" and "why."
"You" because the customer must first be willing to buy you before he or she
buys your product or services. And "why" because successful salespeople
always strive to learn why customers are motivated to purchase something.
3. "The lifelong learning formula" – Great salespeople never stop learning.
Start your quest with attitudeboosting books by Dale Carnegie and Norman
“People don't buy for Vincent Peale.
your reasons – they buy 4. "Implement the rule of 'The More'" – TV is a salesperson's greatest enemy.
for their reasons – so The more time you spend in front of the TV, the more your competition will
find their reasons (their clean your clock. Don't waste your time in unproductive pursuits.
'why') first and sell them
on that.” 5. "What does it take to become number one – and stay there?" – Be positive,
confident, likable and dedicated. Always be honest and stay focused.
Now, reread all these principles, "study each one...go back and make a game
plan."
About the Author

Jeffrey Gitomer is a bestselling author, columnist, sales trainer and business coach. His other books include
The Sales Bible and The Little Gold Book of Yes! Attitude.
057
12/19/2016 Leading the Learning Revolution Summary | Jeff Cobb
Book
Leading the Learning
Revolution Solid marketing principles also apply
to promoting online education.
The Expert’s Guide to Capitalizing on the Exploding
Lifelong Education Market
Jeff Cobb
AMACOM, 2013
Buy the book
Recommendation
Elearning expert Jeff Cobb details how to plan, develop and promote a profitable
Internet curriculum for adult learners. This expert, comprehensive guide covers
how to sell learning products and services online, how to use a variety of web tools
to conduct market research, and how to vend almost any products and services via
the Internet. Leaving no aspect of monetizing online education uncovered, Cobb
also explains overall Internet marketing more effectively than most specialized
sales guides. getAbstract recommends his knowledgeable, accessible manual to
anyone who is seeking to sell products or services online – educational or
otherwise.

• What new online opportunities await entrepreneurs in the field of education
• How to capitalize on these opportunities by establishing a niche, targeting
prospects, offering longterm value and forming lasting relationships
Take-Aways
• Advances in technology make it relatively inexpensive to provide forprofit
adult learning – outside of a classroom – worldwide.
• Entrepreneurial educators use the Internet to sell and present their courses.
• Educators must establish niches for their offerings, target appropriate
prospects, offer longterm value and form lasting relationships.
• Product differentiation and competitive pricing challenge online educators.
• Online educational companies need a wellconceived business model with a
strong value proposition.
• Webeducation models include the “purpose × passion” basic course,
introducing your programming with free content, virtual conferences and
mass audience lectures.
• The potential market is vast: More than 70% of professional and trade
associations offer continuing education courses online.
• Target prospects who can become your lifelong reeducation customers.
058
• Always remind your clients exactly how the knowledge you offer benefits
their lives.
• A good email list is the best tool for marketing educational products and
services.
Summary
“Knowledge Economy”
Change is the one reliable constant in today’s knowledge economy. The nature of
work is in a perpetual state of rapid transformation. Working people must keep
“Learning providers acquiring both new information and expertise continually to stay competitive and
must be prepared to take employable. This is as true for creative leaders whose work demands solid critical
some risks, make some thinking as it is for all of their employees.
leaps, to lead their
learners to new and Contemporary industry will bypass those who fall out of date, but perpetual self
better places.” improvement requires a high degree of selfdiscipline and selfdirectedness. All
workers must assume personal responsibility for enhancing their skills and
developing their education. As everyone acknowledges and adjusts to the
knowledge economy, it is mutating into a “learning economy.”
Anyone with a computer and an Internet connection can connect with and
instruct people across the globe. Advances in technology – such as “lowcost,
reliable web conferencing technologies” – make it feasible and relatively
inexpensive to provide forprofit adult learning outside of a classroom. Corporate
training departments now commonly offer elearning. More than 70% of
“Even as unemployment
professional and trade associations now also offer some continuing education
surges, businesses are
courses online.
having a difficult time
finding people with the
types and levels of Worthy Models
talents they need for Using basic web and video tools, hedge fund manager Salman Khan has produced
open positions.” more than 2,000 videos and has provided students with almost 150 million
lessons. The founder of the Khan Academy, he started out in education intending
only to teach his cousin. Today, teachers’ and students’ loyalty to Kahn’s
educational materials testifies to their value. He embodies the two personal traits
necessary to succeed as a specialized learning provider: ample expertise and a
robust entrepreneurial spirit.
Stephen Downes and George Siemens initiated a “massive open online course”
(MOOC), offering presentations incorporating “blogs, wikis, email and an open
source learning management system.” Thousands of people worldwide
“Nearly anyone with a
decent computer, a high participated in the MOOC, the first of many of largescale online activities staged
speed Internet by Downes and Siemens.
connection and expertise
Multiplayer games also can become educational experiences. The Institute for the
or access to expertise in
a topic or skill set can Future supervises various “serious games,” in which participants compete to
reach a global audience develop intellectual solutions to pressing world problems such as global poverty.
in very sophisticated According to the Institute, this form of massive online participation promotes
ways.” social learning.
When learning on the Internet, online students engage with their instructors and
with each other via chat, “multiway video” and discussion boards. By providing
commentary, online students also teach one another. Online instruction has
become an accepted, expected staple at major colleges and universities. The
renowned and respected Technology, Entertainment and Design (TED)
conference recently premiered TEDEd (http://education.ted.com), a special
educational website.
059
Your Market
“You are much more Send online promotions for your educational product only to those who might
likely to keep people’s become profitable longterm customers. Focus on the niche audience that wants
interest and build a your specialized expertise. Establishing a sustainable, longterm client base
longterm relationship requires approximately 1,000 customers who become “true fans” – those who buy
with them if you are anything you produce, because they expect your materials to promote and sustain
helping them rather their professional growth. Securing the 1,000 customers who become your loyal
than overtly selling to following requires an initial prospect base of 50,000 to 100,000 individuals.
them.”
Perform simple Google key word searches that are relevant to your prospective
educational products. For example, if you plan to teach entrepreneurs about cash
flow, search “small business cash flow.” Seek related Google ads and YouTube
videos. Use Facebook, LinkedIn and Twitter. Set up a Google Alerts feed that
gathers online information aligned to your search. To define your audience, use
SocialMention as a social media search tool and SurveyMonkey to complete
online surveys.
Once you have an idea of your target market, place a test ad on Google. Start out
“Millions of adults are
with a “minimum viable product.” Develop an “‘always in beta’ mentality” about
going online each day
product development. Don’t invest a lot of time and money developing your
and finding free content
that meets specific educational products until you have a solid base of prospects – a “minimal viable
learning needs.” audience.”
For online marketing, offer a solid customer incentive on your website’s landing
page, which should also feature a call to action. Buy an appropriate email list for
your marketing. MailChimp provides free lists of up to 2,000 names. Constant
Contact is another popular email list vendor. Your marketing research activities
can be summed up as: “listening, asking and testing.”
Business Models
Select a sound business model for your educational products and services
“If you are an excellent
enterprise. Your model should cover various options for creating and sustaining
teacher...you have the
makings of an excellent revenue. Popular business models for educational enterprises include:
marketer, and vice
versa.” • “The P2 community model” – Use this model to teach basic skills that
always need updating. P2 stands for “purpose × passion,” the base prime for
educational activity with ongoing renewals. Your online community needs
both purpose and passion in order to coalesce. Take the AList Blogging
Bootcamp established by Leo Babauta. It offers an Internet course that
teaches people how to become power bloggers. Another is the SciMind
initiative, which incorporates “selfpaced learning content” supplemented
by expert assistance and peertopeer learning.
• “The flipped model” – Educational entrepreneurs use this model to offer
“An AdWord ad is like a valuable free educational content to establish their subject expertise before
very concise, miniature they attempt to charge for their educational products. This model enables
landing page.” you to establish strong brand awareness and develop client loyalty before
you sell.
• “The virtual conference model” – This model utilizes advanced
webinar or webcast programming that enables learners to attend
educational conferences through the Internet in their homes or offices.
Some organizations sponsoring conventional educational conferences worry
that virtual conferences will gut their customer attendance numbers, but
marketplace experience does not support this concern.
• “The massive model” – Use this Internetbased model to communicate
“Technology...has so far from your computer to millions of people across the planet at virtually no
had the most visible, cost. Educators today can reach 10,000 people as easily as they can access a
obvious impact on how classroom of 20 students. “Massive learning experiences” involve
we perceive learning educational content assembled by experts and presented over the Internet
and education.” to vast numbers of students. These learning experiences are collaborative, as
students naturally form their own commentary groups.
060
Differentiation
The plethora of free information on the Internet makes competing as a cyberspace
educational service difficult. To avoid cutting your prices, develop a brand that
clients want. An online educator’s product differentiation requires you to:
• Be distinctive – Generate unique content or package familiar content in a

new way.
“It is rare for organiza
tions that offer lifelong • Be “memorable” – Do something your students will never forget.
learning opportunities • Generate buzz – Get people to talk about you.
to actually measure
whether learning has • “Exploit your strengths” – Identify what you do best. Have an outsider
happened, and whether give you an objective appraisal.
knowledge and skills • “Redefine your market” – Imbue your product with your personality;
have been retained.” make sure your prospects know that your work springs from your heart and
is unique.
• “Set the standard” – Learn from the example of the Project Management
Institute, which became known as the gold standard for project
management through its professional certification program. TED achieved
similar stature by holding “creativity, design and innovation” conferences.
• “Be contrarian” – Most software firms constantly introduce new features.
In contrast, 37signals succeeds with only a few software products offering
minimal features. Don’t try to be all things to all clients. Develop and be
“Game play on a large
proud of your niche.
scale is one of the most
effective mechanisms we • “Create a story” – Starbucks successfully established a flattering story
have for broad societal about its customers, portraying them as sophisticated people who
learning and change.” understand the value of an elegant “Europeanstyle coffee experience.”
Frame your offerings so your clients feel as if they are part of a special
community.
• “Imitate strategically” – Successful firms often copycat, patterning their
products and image after the designs of originating companies.
• “Adapt creatively” – Gary Vaynerchuk built his family’s liquor business
from $4 million to $60 millionplus per year by creating Wine Library TV.
He developed a loyal following for this online educational venture
showcasing his wine expertise.
“There is and will
continue to be a lack off Work from specific learning objectives, such as, how to use your firm’s financial
sufficiently educated reports and files to “identify and document potential revenue recognition
people entering the US problems.” Combine the right objectives with sound instruction to give your
economy in the
clients what they want and need. Help them understand how the knowledge you
foreseeable future.”
offer benefits them. Edit your instructional materials down to their minimal
essence. Repeat the most basic, crucial information over and over. Segment your
material into memorable chunks. Use multimedia – videos, cartoons, animated
graphics, photographs and music. Actively involve your students by providing
“checklists, worksheets and other tools.”
Sophisticated tools available for creating online learning materials include

WordPress for blogging and Adobe Fireworks for image editing. For online video,
purchase a digital video camera with audio capabilities. Set up a separate digital
“As you consider your audio recorder to capture sound. The Jing tool from TechSmith excels at
market, don’t think in “screencasting” – capturing what appears on your computer screen. Work with a
terms of transactions; single platform that can handle your webinars and webcasts. Great “rapid course
think in terms of rela creation tools” include TechSmith’s Camtasia and Articulate’s Rapid ELearning
tionships.” Studio. Your clients must be able to access your materials from your website;
WordPress also works well as your online platform for this purpose. Choose a
highquality learning management system that provides advanced credit and
integration options. No matter which tools you employ to develop your
educational content, maintain full editorial control.
061
Most learning takes place informally. To stay uppermost in the minds of your true
fans, especially between online learning sessions, reach out to them through your
“Convenience and
relevance ... have now educational content, such as blogs, surveys, pop quizzes and such. Use email to
become much more stay in touch with your learning clients and to promote your products. The well
central to the value known AIDA formula – “attention, interest, desire and action” – applies as much
proposition of to the marketing of educational products as to any product category.
educational products
and services than they Your goal as an online educator is to make a positive and lasting impact on your
have ever been before.” clients’ lives and work. Use such products as the Mozilla Open Badges project to
test whether your clients learn the lessons of your online courses. Adapt your
materials to ensure that they do.
Develop a “Learning Platform”

Develop longterm relationships with your clientele. Provide them with
opportunities for meaningful change “in knowledge, in skills, in behavior.” To
build a longterm clientele, create a learning platform for your prospects. Your
learning platform provides the basis for building client trust.
“It is simply hard to beat
the convenience of Learn who your students are. Engage and empower them so your educational
staying in your office or offerings become an essential component of their lives. Become a change agent –
at home while still and a learning leader – for your online community. When that happens, you
getting access to great exemplify the essence of social learning and your company will thrive.
content and interaction
with peers.”
About the Author
Jeff Cobb, founder of Tagoras – a consulting firm specializing in continuing education – was cofounder and
CEO of the elearning organization Isoph and senior vice president of Quisic.
062
12/19/2016 Managing the Millennials Summary | Chip Espinoza et al.
Book
Managing the Millennials
Of course, you’re not old. But if you
Discover the Core Competencies for Managing Today's were born before 1978, you need
Workforce some new management techniques.
Chip Espinoza, Mick Ukleja and Craig Rusch
Wiley, 2010
Buy the book
Recommendation
Those difficult 20somethings in your workforce address the CEO by first name,
talk out of turn in meetings, and show up late but gladly pull allnighters. They
bristle at your suggestions but thrive on complex challenges. They’re special –
that’s what their parents and teachers always told them. They’re the Millennials,
complex, multitasking, technologically savvy, exasperating, bright but entitled
new employees entering the workforce by the millions. Consultants and
professors Chip Espinoza, Mick Ukleja and Craig Rusch offer tactics and
strategies for managers confused by this unpredictable generation. Though the
authors don’t mind painting this or any other generations with a very broad
brush, they still present much useful advice. getAbstract suggests throwing out
the rule book and adopting the authors’ nine strategies for getting the most out of
your youngest workers.

• How Millennials differ from earlier generations
• Which differences create tension at work
• What nine best practices you can use to manage Millennials
Take-Aways
• Millennials have different expectations about work than their predecessors.
To maximize their potential, practice these nine core management
competencies:
• First, show flexibility by working with “autonomous” Millennials on mutual
goals.
• Second, use affirmation and positive feedback as incentives for “entitled”
Millennials.
• Third, provide the freedom for these “imaginative” workers to express
themselves.
• Fourth, develop relationships to engage “selfabsorbed” Millennials.
• Fifth, disarm their “defensiveness” by focusing on their achievements.
063
• Sixth, separate yourself from Millennials’ “abrasiveness,” and don’t take it

personally.
• Seventh, mentor them even if they are “myopic” about the results of their
actions.
• Eighth, “unfocused” Millennials think they are multitasking. Issue clear
directions.
• Ninth, motivate “indifferent” Millennials by helping them find meaning in
their work.
Summary
Generation Traits and Gaps

Millennials form the “most educated and technologically savvy generation ever.”
Their parents sheltered them and gave their lives structure. The US workforce
now includes 31 million Millennials, and that number will increase steadily in the
“Managers cannot bring next five years. When people of the same age experience highimpact events, they
themselves to believe develop a similar mindset that shapes lifelong perspectives and values.
that someone can listen
to an iPod, manage their People born between 1925 and 1945 form the Builders generation and were
fantasy football team shaped by The Great Depression, Roosevelt’s presidency, World War II and its
and be focused on work aftermath. They respect authority, value a strong work ethic and expect to wait for
at the same time.” rewards. Builders often worked for one company their entire careers.
Following the Builders came the Baby Boomers, the more than 80 million
Americans born between 1946 and 1964. They experienced the emergence of
television and rock and roll, the Vietnam conflict, the civil rights and the women’s
movements. For Boomers, work is about accumulating material wealth and
creating a professional identity.
Arriving between 1965 and 1977, Generation Xers – 38 million strong – bridge
Baby Boomers and Millennials. They grew up with video games, MTV and
computers. Two working parents, a high divorce rate, AIDS and a lack of
corporate loyalty shaped the lives of Gen Xers. They value independence, mobility
“It is fascinating that
and worklife balance.
each generation has a
set of values, attitudes From 1978 onward came the Millennials, a generation weaned on technology,
and beliefs that inform social media and iPods. They were praised by their parents for every
their behavior.”
accomplishment. Millennials have high opinions of their own capabilities and
high expectations of their employers. They want direct input, creative challenges,
immediate feedback and instant autonomy. Traditional management techniques
will fail with this staff segment.
To remain relevant, strong and vital, companies must understand and motivate
Millennials. Every new generation questions authority, seeks alternative paths
and upsets the status quo. However, Millennials are unique: They don’t need their
elders to provide information; the world’s knowledge awaits them at the click of a
mouse.
“Millennials are the first Effective Millennial Management

generation that can “My way or the highway” won’t work with Millennials. Today’s effective managers
access information create an environment in which Millennials can adjust and succeed. They strive to
without an authority
see things from the Millennials’ point of view and “suspend the bias of their own
figure.”
experience.”
Working well with Millennials requires an adaptive management style, rather

than forcing Millennial employees to change. Confidently seek common ground,
allowing subordinates to question and challenge you openly. Forge relationships
064
with your 20something employees, and honor your role as a mentor and enabler.
When managers understand the motivation behind Millennials’ perceptions, they
can build bridges of trust within their departments. Successful managers practice
nine core competencies to get the best from Millennials:
“They do not know how 1. “Flexing with the Autonomous”

to fail because they were Millennials prioritize worklife balance, so their managers must be flexible.
never allowed to fail.” Millennials will not sacrifice everything at the career altar. They will switch
companies before abandoning their personal interests. Managers attempting to
mold Millennials in their image will fail. Many managers place the onus of making
sacrifices on new employees instead of learning to be flexible. After all, managers
put in years of hard work and feel younger employees should listen to and respect
them. They find Millennials undependable; they know younger employees might
vanish during rigorous training or tough times.
“Flexing” does not mean allowing employees to call the shots. Flexing refers to
initiating conversations with Millennials about how you can work together toward
mutual goals. These conversations generate a relationship in which managers can
share their knowledge and experience with new hires. A willingness to be flexible
“The familiarity that
Millennials exercise is in scheduling, methods and approaches gives Millennials a sense of autonomy as
perceived by many they meet their obligations.
managers to be a lack of
respect for position and 2. “Incenting the Entitled”
titles.” Because Millennials feel entitled and value rewards, managers must offer
incentives. Employee reward and recognition programs are nothing new. But the
“entitlement orientation” managers perceive in young employees can cause
conflict. As one manager commented, “We just didn’t have the expectations
Millennials do or, if we did, we would never verbalize them.”
Millennials thrive on affirmation and positive feedback. They received both

throughout their childhoods, and they expect both in the workplace. Yet they
disdain employeeofthemonth programs, plaques or titles. They want to receive
something they value, and they want it right away. However, getting a trophy just
for showing up is a policy best left on the soccer fields of their youth. Take three
“One of the quickest steps to institute effective incentive programs for Millennials:
ways to turn Millennials
off is to invite their par 1. Develop incentives Millennials value.
ticipation and not really 2. Enumerate clear and specific required goals.
mean it.”
3. Assess their performance in a transparent, fair and timely manner.
3. “Cultivating the Imaginative”

Millennials are imaginative and emphasize selfexpression, so their managers
must cultivate their natural propensity for thinking outside the box. They’re not
changeaverse and they flourish when creating, innovating or problem solving.
But creativity seldom thrives in environments constrained by processes and
procedures. Managers who grant Millennials freedom to be imaginative,
unhampered by organizational policies, will reap the benefits.
Millennials get bored quickly, so offer new tasks, and allow them to have fun while
“You have to help
they work on projects. This generation draws no line between work and play.
Millennials find a reason
Don’t ask for their input unless you’re ready to respond to it. Millennials are easily
to care.”
frustrated if you don’t incorporate their ideas, but become energized and
motivated when you do.
4. “Engaging the SelfAbsorbed”

Selfabsorbed Millennials expect attention. Their managers must engage them.
Because their parents emphasized nurturing rather than training, Millennials
grew up in an atmosphere of attention and affirmation. At work, they expect
managers to assume the supportive roles once held by mom and dad. Previous
065
generations understood that their wants and needs were secondary to those of the
organization. Millennials work under no such assumptions. One manager
“What they want is for explained, “[My boss] just told me what was expected of me, and if I couldn’t do it,
you to be who you are, they would get someone who could.”
and for you to like
them.” Managers will get the most from their young staffers by showing an interest in
them, finding common ground and soliciting their input. You shouldn’t become
their drinking buddies, but try, within limits, to engage them on a personal level.
This runs contrary to traditional management practices that eschew building
personal relationships with subordinates. However, Millennials work much
harder for – and are more loyal to – managers they like and who like them in
return.
5. “Disarming the Defensive”

Millennials are defensive and prioritize achievement. Managers must disarm their
low threshold for negative feedback. When Millennials hit bumps during their
“Though Millennials childhood, their “helicopter” parents swooped in to their rescue. Human
value simplicity, they resources departments report that it’s not unusual to hear from parents of
are not simplistic.” Millennials who receive a less than stellar evaluation. Older managers of today
credit their success to superiors who occasionally got tough with them. They have
a hard time understanding why Millennials wither under this approach.
When these workplace novices receive criticism or constructive critiques, they

respond defensively, shifting responsibility, assigning blame or becoming hurt
and angry. Managers can defuse defensiveness in 20something employees by
applying the following seven techniques:
• Don’t argue.
• Recognize their emotions, grant their points and honor their competence.
“The idea that leaders
• Rather than bargain over blame, discuss mutual problem solving.
and managers are going
to change members of • Avoid embarrassing them or hurting their pride.
the current generation • Give them a chance to offer “constructive criticism.”
into what they want
them to be is a strategy • Tell them how much you value your work relationship with them.
destined for failure.” • There is no “win”; your goal is a more effective workplace.
6. “SelfDifferentiating from the Abrasive”

Millennials can be unknowingly abrasive, but they value informal giveandtake,
so managers cannot take their cockiness personally. Baby Boomers questioned
authority and challenged traditional ways of conducting business. They raised
their children as equals, encouraging them to speak up and giving weight to their
input. So, unsurprisingly, their offspring resist kowtowing to higherups.
Millennials speak their minds in meetings, address bosses by their first names
and question instructions. Managers often perceive this overly familiar
communication style as rude. Department heads able to selfdifferentiate – that
“Tapping into Millennial is, separate their professional position from their selfhood – better maintain their
creativity and the equilibrium and manage more effectively.
energy that
accompanies it can be
both incredibly 7. “Broadening the Myopic”
satisfying and Millennial employees can be shortsighted about the consequences of their
productive.” actions. Good managers teach or mentor via broadening – taking advantage of
daily situations to facilitate the learning – and thus help Millennials connect their
job responsibilities to the overall goals of the organization. Because Millennials
enjoy creative thinking and problem solving, utilizing exercises as teaching tools
can also be effective. For example, the “consequential thinking model” requires
listing three approaches to a challenge and considering three possible outcomes.
Generating scenarios and thinking through possibilities helps Millennials connect
the dots between their actions and resulting potential consequences.
066
8. “Directing the Unfocused”

Millennials pride themselves on their multitasking ability, but managers can find
“The best way to reduce their behavior fractured and unfocused. Both groups benefit when managers
tension is to provide a high level of direction and then let young employees apply their know
communicate.” how. Millennials dislike ambiguity and respond best to clear and detailed
instructions. Don’t leave anything unspoken – assuming that it falls under the
category of common sense – because these employees do not share your frame of
reference. Issue concise directions that cover the what, where, when and how of
the task at hand. Provide timely feedback on the results. How to instruct
Millennials:
• Don’t assume they understand your directions: “Ask clarifying questions.”

• Quickly provide feedback in conversation and as per company procedures.
• When you know they know what you want, let them go do it.
“An organization’s • Make sure everyone understands the goals and necessary outcomes.
future vitality is
dependent on its ability 9. “Motivating the Indifferent”
to attract, retain,
Millennials need to find meaning in their work. For them, a paycheck means less
motivate and develop
than valuing what they do. Once they understand the role a task or responsibility
Millennials.”
plays in the greater scheme, they are happy to comply. You can motivate
Millennials by showing them that their work matters.
About the Authors

Chip Espinoza teaches leadership seminars and heads GeNext Consulting. Mick Ukleja is founder and
president of LeadershipTraQ. Craig Rusch teaches anthropology at Vanguard University in California.
067
12/19/2016 Mastering MOOCs Summary | Karl Ulrich | PDF Download
Book
Mastering MOOCs
Prestigious universities offer top-
Using Open Online Courses to Achieve Your Goals flight, mostly free MOOCs – massive
Karl Ulrich open online courses.
Wharton Digital Press, 2015
Buy the book
Recommendation
Prestigious universities offer many, topflight massive open online courses
(MOOCs), and most of them are free to the public. MOOCs are a new and exciting
development in distance learning. Now you have access to the level of education
offered at top universities and to classes such as Contract Law: From Trust to
Promise to Contract and Fundamentals of Neuroscience from Harvard,
Introduction to Negotiation from Yale, and Calculus and Principles of Synthetic
Biology from MIT. Millions of online students participate in MOOCs.
Knowledge@Wharton, the online business journal of University of Pennsylvania’s
Wharton School of Business, produced this useful MOOC manual: a superb,
handson guide that explains how online learners can get the most from these
classes. getAbstract recommends this timely, useful ebook to anyone intrigued
by – or already participating in – online learning.

• How massive open online courses (MOOCs) work
• Who offers them
• What they cost
• What they require
• What benefits they offer
Take-Aways
• Hundreds of prestigious universities offer massive open online courses
(MOOCs) on a variety of educational subjects – and most are free to the
public.
• Some MOOCs involve optional completion certificates that cost nominal
fees.
• Millions of learners partake of MOOCs.
• MOOC students face no entry or participation requirements.
• Anyone with a computer, browser and adequate web connection can join a
MOOC.
• Learners take part in MOOCs according to their own needs and schedules.
068
• Most learners spend four to six hours weekly on MOOC study and related
work.
• Learners sign up for MOOCs to expand their skills, increase their
knowledge, enhance their professional credentials, refresh their memories
and solve business problems.
• MOOCs require selfdirection, selfdiscipline and the desire to learn.
• Online reviews and critiques help learners evaluate MOOCs.
Summary
The Value of MOOCs

Max Buckley was close to graduating from Ireland’s Cork Institute of Technology
when he learned about massive open online courses (MOOCs). A business
“The rise of MOOCs has administration student, Buckley wanted to broaden his knowledge about upto
made it possible for date technology and computers. He signed up for MIT’s free Circuits and
people across the world Electronics MOOC. Although he couldn’t finish the course because of his final
to learn concepts and exams at Cork, he loved the onlinelearning experience and enrolled in more
topics that just a few MOOC computerprogramming courses offered by some of the world’s most
years ago could only be prestigious universities.
accessed by students in
elite universities.” Buckley was already enrolled in a dataanalysis course when he interviewed for a
Google internship. The Google staffer interviewing him was enrolled in the same
MOOC. Buckley won the internship, and Google later hired him fulltime. Today,
Buckley is a Google productquality analyst. Buckley and his interviewer shared
the experience of selfdirected learning. Enrolling in MOOCs doesn’t guarantee
anyone a job, of course, but Buckley’s tale illustrates how much learners with the
necessary “time, commitment and Internet connection” can gain when they enroll
in MOOCs.
“Independent learning is Many universities offer MOOCs in conjunction with educational technology firms
difficult, but you can such as edX and Coursera. To illustrate how this works, if you enroll in a MOOC at
learn from a MOOC...It’s the University of California, Berkeley, you take the course through the edX
not a degree, but you website. EdSurge reports that more than 400 universities now offer an estimated
learn things that can be 2,400 different MOOCs, mostly for free and in “more than a dozen” languages.
applied immediately.”
(Deidre Woods, At Your Convenience
University of Pennsylva Online learning has been around since the early 1980s. However, the earliest
nia) efforts failed due to the limits of technology at the time. The availability of “low
cost, highbandwidth Internet connections” and cloud computing launched
MOOCs like a rocket. MOOCs don’t demand special admission requirements or
prerequisites. There is no application process. Most MOOCs don’t take as long to
complete as typical college courses. Students can view classes any time and on any
schedule. MOOCs eliminate many of the barriers between learners and new
knowledge.
Millions of Online Learners

“The best MOOCs are
Colleges make MOOCs available on the web so people around the globe, in the
academically
largest possible numbers, can take advantage of them, usually at no cost. Since
challenging, especially if
their introduction, millions of online learners have participated in MOOCs, which
the course is in a new
became extremely popular by 2012.
field for the learner.”
Some MOOCs do charge “learners” – the preferred MOOC term instead of
“students” – small fees for certificates they can use to prove that they completed a
course satisfactorily. For around $50, edX and Coursera provide learners with
certificates of completion. For a monthly fee to Udacity, learners receive a
“verified certificate” and officehour access to coaches and instructors.
069
Because MOOCs generally provide excellent learning experiences developed by

worldclass universities and renowned professors, they offer a substantial return
“Even the most casual on the investment of your time. Some learners report that they have earned higher
use of [MOOCs] takes a wages thanks to taking MOOCs.
certain level of selfdi
rection, an ability to
Components and Characteristics
learn independently and
Besides standard educational components such as video lectures, online quizzes
a dedication that not
and reading assignments, MOOCs feature interactive forums where students and
everyone can provide.”
professors communicate electronically. Learners grade all MOOC assignments.
On an educational spectrum, a MOOC lines up “somewhere between a textbook

and a college course.” Many businesspeople take MOOCs to develop their
knowledge and skills, to enhance their professional credentials, to secure helpful
background knowledge for running or starting a business, or to accomplish
similar purposes. Others turn to MOOCs to gain the information they need to fix
outstanding business problems or to upgrade the skills of their team members.
“MOOCs aren’t a Some learners take MOOCs for recreation or to satisfy their intellectual curiosity.
substitute for college However, businesspeople who want to stay competitive must maintain their skills.
credit, but they…provide MOOCs are ideal for this purpose. They provide résuméenhancing quality
a more immersive information and a superior learning experience. As MOOCs have become
learning experience than increasingly popular, more managers have begun to accept them as legitimate
other solo options, such professional credentials.
as picking up a
textbook.”
Basic Requirements
Thanks to the availability of MOOCs, anyone anywhere with a sufficiently robust
Internet connection, adequate computer processing power and a quality browser
can acquire valuable knowledge in an efficient format. Such information
previously was available only to university students. The typical MOOC requires
four to six hours of study and learning per week. However, the courses aren’t
always easy and can be quite challenging.
Learning Alternatives
“MOOC providers are
MOOCs represent only one option among many for those who want to add to their
increasingly making
their courses mobile education. These courses involve greater interaction than simply studying a book.
friendly.” However, they aren’t as immersive as the typical classroom experience. MOOCs
can’t replace the rich educational experience of a traditional college education or
measure up to MBA programs, which offer constant networking opportunities and
special cachet. However, “industryspecific educational” programs can prove
valuable in addition to traditional educational options.
MOOCs can serve as a portal to more indepth learning alternatives. They are
useful for learners who want to investigate different areas of knowledge to
determine if they are interested in further study that involves a greater
commitment and a more comprehensive educational experience. MOOCs enable
“MOOCs may be shorter learners to test the waters of an area of study without a big financial commitment.
and somewhat less
rigorous than
traditional college Multiple Educational Choices
courses, but that doesn’t MOOCs cover an incredibly diverse range of engaging topics. Usually, you can
mean they don’t require find a course on whatever subject you want. “A lot of information that wasn’t
a time commitment.” available before is out there now,” says Piotr Mitros of edX. He explains, “In most
cases, these advanced courses were created by one professor…for a very small
class.”
Consider these MOOCs: Buddhist Meditation and the Modern World, from the
University of Virginia via Coursera; The Ethics of Eating, from Cornell University
via edX; Foundations of eCommerce, from the Nanyang Technological University
through Coursera; and Financial Analysis of Entrepreneurial Ideas, from Babson
College’s Babson Global via NovoED.
070
With the huge number of choices now available, selecting the right MOOC can be
“Although the average a challenge. Expect to spend time – and considerable trial and error –
workload for a MOOC investigating a variety of MOOCs before settling on one that will work best for
hovers around four to you.
six hours a week, the
time required can vary Rely on your peers for guidance. Former learners usually post reviews and
greatly.” critiques of MOOCs. Additionally, most MOOCs have landing pages that offer
useful course information and guidance. These often include sample videos from
the course and information about its time requirements. Whichever course you
choose, be sure to set aside a sufficient amount of time for your MOOC studies. Be
ready to increase your time allotment, if necessary. For a successful MOOC, also
consider these tips:
• To benefit from your MOOC, make sure you commit sufficiently to doing the
work. Plan when and where you will study. Once you set your MOOC
schedule, stick to it.
“Many MOOCs archive
materials online after • Determine if you will need a successful completion certificate or some other
the course has ended… type of recognition. These certificates demonstrate that you did everything
giving learners the necessary to gain the requisite knowledge from your course.
chance to review key • Check that your computer, browser and web connection can handle the
takeaways, check a MOOC you plan to take. If you intend to access the Internet through a
reference or review
mobile device, find out if it is compatible with the MOOC you want. “All
video segments.”
computers and Internet connections are not created equal, so check the
MOOC’s provider tech requirements in their frequentlyaskedquestions
section.”
• You may find that the MOOC that interests you doesn’t deliver all the
knowledge you seek. If so, search out supplementary MOOCs to fill in any
information gaps.
• Ask your relatives and friends to support your MOOC learning efforts.
“It becomes a question of Your Fellow Students

choosing among many Often, you gain the most from a MOOC by connecting with other people in your
books in the library.”
course. Communicate with them regularly through the learners’ forum or social
(MacArthur Fellow
media. MOOC learners who live near each other often can set up mutually
Daphne Koller, Coursera
beneficial “study groups.” Your peers can help you understand your course
president and co
founder) material and its applications.
Use your completed MOOC as a starting point for more education, whether
through additional MOOCs, books, traditional college courses or other training
options.
Movable Goes to Wharton

Mike Belsito is director of product and strategy for Movable, a health and fitness
startup firm. The company’s primary product is the Movband, a personalfitness
tracker. Belsito wanted to learn about gamification and how it might enhance his
“For MOOC learners
users’ experience. He signed up for a Wharton gamification MOOC and sent an
seeking personal
email to his employees about the course asking, “Who wants to go to Wharton
enrichment and those
with me?”
looking to improve their
professional skills, the Nearly a third of his 25 employees signed up to watch the lectures as a group.
spectrum of courses is
They discussed the class after the lectures. Besides encouraging his employees to
broad, and…can be a bit
participate in the gamification MOOC, Belsito also gave them books on the
overwhelming.”
subject. He appreciates the value of MOOCS for his own education and for
educating his team members.
Thanks to the Wharton MOOC, Movable employees learned more about

developing an attractive user platform. More firms like Movable have come to see
MOOCs as valuable employee training and learning options. Guidelines for
bringing your employees to MOOCs include:
071
• Don’t force MOOCs on employees. Promote MOOCs as available training

“There are three types of options, along with books, seminars and specialized individual training.
MOOC learners: those • Utilize handouts and vocabulary or conceptual guides for your MOOC. This
who are just browsing, ensures that everyone on your team works from the same information.
those who want to view
the material but won’t • Enroll in the same MOOC as your team members, so you share the same
do the homework, and learning experience.
those who will do…the • Tie the MOOC course closely to specific problems your team needs to solve.
work and complete the Use team meetings to discuss the relevance of the MOOC to pressing
course.” (Professor Karl business issues.
Ulrich, Wharton)
The Right MOOC

While MOOCs can be of immense value, make sure they meet your specific
educational goals before you join. MOOCs are not suitable for everyone. They
require dedication, selfdirection and the desire to learn on your own. Consider
two other crucial points to ensure that the MOOC you choose will be right for you:
1. “Map your goals” – Decide what you hope to achieve when you choose a
specific MOOC. Do you want to learn specialized new knowledge, develop a
Each class “felt like a full
new skill, improve your existing skills or simply satisfy your intellectual
semester, not just a
curiosity? Choose the MOOC that will help you attain your goals.
seminar and an
overview. I was being 2. “Look for immediate, practical applications for your lessons” –
delivered great Will your MOOC help you to enhance your professional abilities? Determine
information.” (Antona how to make practical use of your new expertise. Consider how the members
Brent Smith, MBA, of your team may also benefit.
MOOC student)
About the Author

Knowledge@Wharton is the online business analysis journal of the Wharton School of Business at the
University of Pennsylvania. It publishes a global edition in English and regional editions in Spanish, Portuguese,
Simplified Chinese and Traditional Chinese.
072
12/19/2016 Mastering the Complex Sale Summary | Jeff Thull
Book
Mastering the Complex Sale Very complex sales don’t require a
How to Compete and Win When The Stakes are High! flashy personality or a big
presentation — a tough, customer-
Jeff Thull
focused method will do.
Wiley, 2003
Buy the book
Recommendation
This excellent guide explains a methodology that can help anyone in sales. This
sales approach depends essentially on seeing the sale through the customer’s eyes,
and involving the customer in designing a solution to his or her own problems.
This approach goes against some standard practices in sales, but those standard
practices antagonize customers and build distrust. Author Jeff Thull offers helpful
reminders on the value of researching individual customers, picking the right
entry point to an organization and other best practices. However, he sometimes
seems overenthusiastic and overoptimistic about his system’s infallibility. After
all, in some organizations, sales people who tried to follow this methodology
would be criticized for failing to meet more conventional targets, such as number
of calls per week. This detailed method for conquering manylevel, multistep
sales is time and researchintensive, but highly effective. getAbstract.com
applauds his emphasis on the value of asking and listening instead of speaking.
Highly recommended.

• how to develop strategies for highstakes, complicated sales
Take-Aways
• Selling is more challenging in this era of commoditization and complexity.
• Selling means managing decisions, change, expectations and relationships.
• Don’t focus on transactions focus on relationships.
• Sell with a system an organized set of steps.
• Profile the ideal customer, and match real customers with the profile.
• Asking questions is more powerful than telling stories.
• Put yourself in the customer’s shoes would you do what you are proposing?
• Sales systems trump sales personalities.
• Analyze and measure performance.
• Learn from mistakes and be flexible when circumstances change.
073
Summary
Selling: The Eras

Within the past 50 to 60 years, selling has passed through three eras:
“Presentations that are
• The script era During the 1950s, the salesperson worked on techniques to
too early in complex
manipulate the customer into doing what the salesperson wanted done.
decisions are largely a
waste of time.” Sales training focused on making the case, parrying the objections and going
for the close. Except in telemarketing and used cars sales, this approach to
selling is virtually extinct.
• The problem solver era In the 1970s, sales training materials began to
emphasize listening, building confidence and developing a relationship.
Instead of a manipulative persuader, the salesperson became a problem
solver. This approach to selling survived and laid the foundation of much of
contemporary selling strategy. But it was only a beginning. Because many
sales people now practice it, it isn’t a differentiating approach in itself.
Moreover, its emphasis on asking questions and listening for answers
implicitly assumes that customers really know what they need. That isn’t
always true. Many problems are so complex that customers don’t
understand them.
• The consultant era In this era, our contemporary era, the salesperson
brings the customer business ideas and solutions that the customer would
“Customers attempt to never have thought of without help. The sales representative solves
make the complex un
problems both for the customer and for his or her own firm. The sales
derstandable by
person has to think in terms of costbenefit for the employer and for the
weighing those elements
customer.
that vendors’ offerings
have in common and
eliminating those Change with the Changing World
elements that do not fit The world is changing. Business is getting more competitive. Products and
neatly onto an over services are losing their uniqueness and becoming commodities. Margins are
simplified comparison shrinking. Companies attempt to compete by offering more complex customized
chart.” or targeted products, thus increasing the complexity of the product market. The
good news is that excellent salespeople have career security, since it takes
excellent people to understand and explain complex new products and services.
The bad news is twofold: 1) complexity confuses customers; and 2) even complex
products and services suffer from commoditization.
Complex sales have several common characteristics. First, the customer is

generally a business (B2B) or a government entity (B2G). The sales have
multiplicity, that is, they involve many people, perspectives and geographies. They
also require a major investment from the seller and a long sales cycle. For
example, sales work began almost a decade before Lockheed Martin’s $200 billion
defense contract was awarded in October, 2001. Selling involved the U.S. and the
U.K air forces and other NATO allies. This sale’s eventual top line might approach
$1 trillion. Perhaps such defense projects are immune from commoditization
perhaps. But elsewhere, commoditization and complexity continue to pressure
“You gain more business.
credibility from the
questions you ask than Technology and communications advances put even complex products under
the stories you tell.” commodity price pressure. Not long ago, a computer was a complex B2B or B2G
product. Manufacturers had big, expert sales forces. But as computers became
ubiquitous, they became commodities. Now, the computer sales model is Dell’s
customers buy online, configuring their own systems and shopping for price.
Meanwhile, the business environment drives complexity. Flat, decentralized

organizations make it harder to identify a prime decisionmaker. Financial issues
are often as important (and as complex) as technical issues. Globalization puts
more countries and cultures in the mix. Customers are tightening supply chains
074
and demanding closer relationships, but don’t seem to be willing to pay a

premium price for relationships. Suppliers compete by innovating, but their
innovations may go far beyond what customers actually need. The world is getting
more complex and more competitive. Yet, many sales organizations remain mired
in old ruts. In their hearts, many salespeople are nostalgic for the old "script era"
“Spectacular success is of half a century ago. They want to find a prospect, make a pitch and close a sale.
always preceded by un But that’s not how life works any more. Using the old process to deal with today’s
spectacular complex sales runs you right into three traps:
preparation.”
• The trap of assumption Conventional approaches assume that the
salesperson can learn the customer’s objectives, priorities, needs, criteria
and so on, just by asking. This assumes further that the customer has a
good, sound decisionmaking process. That may be far from true. Customers
may not be able to analyze, evaluate and compare features and benefits on
complex products and services they purchase infrequently. Some customers
may, but many may not.
• The trap of presentation Sales organizations focus on presenting. But
presentations generally aren’t very effective. They amount to onesided
lectures that put scant focus on the customer and usually look very much
like each other.
• The trap of arguing with the customer When customers raise objections,
salespeople naturally try to counter them. Countering objections was a
fundamental component of Script Era selling. But countering objections on
“The complex sale
a complex sale is a slippery slope that leads to an adversarial struggle with
requires salespeople who
are experts in the the customer. The frustration of complexity, misunderstanding and,
problems customers face inevitably, miscommunication sets up a dangerous dynamic.
and their solutions.”
Methodical Selling
The best sales people, the top performers, don’t do things the same old, stale,
ineffective way. Top performers have a sales methodology that consists of system,
skill and discipline:
• System means an organized approach with steps and procedures.

• Skill is a combination of ability, knowledge, tools and techniques.
• Discipline is a mental and emotional attitude.
Of the three, discipline is the single most important component. The discipline is
threefold:
1. Recognize you are asking customers to change Every solution to every

“Never put anything in problem requires some change. Change requires a personal or
the proposal that the organizational decision to do things differently. A sale isn’t just a matter of
customer has not looking at the features and benefits. It’s about change, and change is hard
already agreed to and and risky. To sell a customer on change, you have to help guide the customer
confirmed.” through a series of psychological and emotional steps called "the
progression to change." This progression is a spectrum ranging from very
satisfied with the current situation to a state of crisis, when change is
inevitable.
2. Focus on developing the customer’s business Invest time in learning all
you can about your customer’s finances, issues, challenges and
opportunities. Then make an offer that builds the customer’s business. If
you don’t have something that helps a customer, don’t waste time trying to
sell to that customer. Go where you’re needed.
3. Build trust Be a combination of doctor, best friend and detective. Doctors
prescribe therapies based on the needs of the patient, and act as
professionals, not as sellers of services. Be a professional. Best friends put
your interests first. Detectives (TV’s Columbo, for example) look closely and
ask questions.
075
After discipline, skill is critical. The top salesperson’s skill set also is threefold:
“Salespeople tend to
forget that there are 1. People Sales success depends on getting to the right people, and bringing
always conflicting those people together. Customers may not have an effective decisionmaking
objectives coexisting process, and it’s the salesperson’s job to help them assemble one. Like a
within organizations.” theatrical producer, an effective salesperson puts together a cast of
characters. Include people from the customer organization who can help
clarify the problem and specify the solution.
2. Questions Effective questions are diagnostic. They reveal the customer’s
frame of reference, concerns, evidence of problems, alternatives and
assumptions.
3. Sequence Complex sales require a series of decisions, not just one.
Effective salespeople lead customers along the path of least resistance
through the decision series. When customers object, it means that a step has
been skipped. The process, called "the bridge to change," establishes your
customer’s goals, responsibilities, criteria for success, specific concerns and
the outcome if those worries materialize. You then offer an authentic
expectation that your product will solve the customer’s problems.
“The individuals in the Finally, the system, called the "Prime Process," or "Diagnostic Business
business who are Development," puts discipline and skill to work:
adversely affected by a
business problem or in 1. Homework Identify customers who are most likely to change. Not every
efficiency are much prospect is a potential customer. Select the highprobability customers
more receptive to based on your research. Develop a strategy based on that customer’s unique
discussing it, and the needs and circumstances.
impact, than the 2. Detection Lead customers through a selfexamination to detect and
individuals who may be diagnose their needs. Research shows that this is the most important part of
the cause of the the sale because customers make decisions while diagnosing their problems.
problem.” Go at the customer’s pace. Don’t rush, don’t ask obviously leading or merely
rhetorical questions.
3. Architecture The salesperson and the customer cooperate to find the best
solution to the problems identified during the detection phase. The best
solution gives the customer the lowest risk and highest return possible.
4. Delivery Since the customer helped design the solution, the delivery
phase’s purpose is to increase the customer’s trust and appreciation of the
salesperson.
Identifying and Engaging the Customer

The best sales people carefully budget their time and effort, focusing sales
resources where the probability of return is highest. The following steps are
critical:
“People change when
• Understand what you bring to the table Know your value proposition. Your
they feel dissatisfied,
value proposition, what you offer, is fundamental to identifying the best
fearful, and/or
pressured by their prospects. Profile your ideal customer; develop a plan to call on "prime"
current problems. customers that fit the profile.
Similarly, customers are • Research the prospect Use web resources. Heed the customer’s financial,
more likely to buy in quality and competitive goals. Read the fiscal reports and the CEO’s letter.
those circumstances.” Learn the culture.
• Be atypical Nobody trusts a salesman, so don’t look like a salesman. Don’t
put your foot in the door until you get a "yes." Try to find reasons to
disqualify the customer instead. Remember, you don’t want to waste your
time. Find the best spot at which to enter a customer’s organization. The
best spot is the person who is experiencing the problem. Learn as much
about this person as you can career background, responsibilities and
concerns.
076
• Give the customer information Don’t focus your first telephone call on
getting an appointment. Instead, give the customer information you know
the customer needs.
• Set the foundation for the detection phase Agree to bring value by helping
“The hard reality of the the customer get a better understanding of the problem that, together, you
marketplace dictates can work to solve. Effective salespeople get the customer’s cooperation in
that you are either part identifying, analyzing, quantifying and seeking a solution to the problem.
of your system or
somebody else’s.” Conclusion
At every phase of the sale, "go for the no." Let the customer know that you will
walk away if the value you are bringing doesn’t meet the customer’s needs.
Remember an order is not a relationship. Be consistent and trustworthy. After all,
selling isn’t a creative art. Results come consistently when the methodology is
right.
About the Author

Jeff Thull is President, CEO and founder of Prime Resource Group, a consulting firm whose clients include 3M,
Microsoft, Siemens, IBM, Citicorp, GeorgiaPacific and Centerpulse.
077
12/18/2016 Mindset AudioBook | Carol Dweck Instant Download
Book
Mindset People can be of two minds: fixed
The New Psychology of Success and flexible. In a changing world,
flexible is better for relationships and
Carol S. Dweck
growth.
Random House, 2006
Buy the book
Recommendation
This book has a simple premise: The world is divided between people who are
open to learning and those who are closed to it, and this trait affects everything
from your worldview to your interpersonal relationships. Author and psychology
professor Carol S. Dweck has scoured research papers and news clippings to
extract anecdotes about the pros and cons of both mindsets. Thus, stories about
Michael Jordan, Lee Iacocca, John McEnroe, Wilma Rudolph and Babe Ruth,
among others, find a place in this book. Dweck addresses the ways that mindsets
have an impact on people. She explains that you can have a closed mindset in
regard to some traits and an open mindset in regard to others. The thought
provoking insight comes from learning when you need to adjust your mindset to
move ahead. The author extends her basic point by viewing all areas of human
relationships through the prism of mindset. That is interesting, but getAbstract
believes that this material would still be useful and illuminating even if it applied
only to leadership and management.

• The differences between a fixed mindset and a growth mindset
• Why the growth mindset conveys more positive lifelong opportunities
• How mindsets affect leadership styles
Take-Aways
• People have either a fixed or a growth mindset.
• People who believe their personal qualities are unchangeable have a "fixed
mindset."
• People who believe they can improve or change their personality traits over
time have a "growth mindset."
• People with a growth mindset believe that the future presents an
opportunity to grow, even during challenging times.
• Mindsets produce definite worldviews, but they can be changed.
• Children who are praised for their intelligence tend to adopt a fixed mindset
and reject new challenges.
078
• Jack Welch, who had a growth mindset, took over GE in 1980 when the
company was valued at $14 billion; 20 years later, it had a $490billion
valuation.
• Athletes with a growth mindset build strong characters by challenging
themselves.
• Historically company executives who hold fixed mindsets and regard
themselves as geniuses or visionaries do not build great teams.
• Coaching and teaching about mindset are the best ways to boost kids' self
esteem.
Summary
The Growth Mindset

Some people are more intelligent, more thoughtful or more adventuresome than
others. For years, experts attributed such differences to each individual's
combination of environment, physiology and genetic makeup. But other factors
help determine individual characteristics, including traits that stem from having a
“The view that you adopt "fixed" or "growth" mindset.
for yourself profoundly
affects the way you lead Those who view their personality or intelligence as unshakable have a "fixed
your life.” mindset." They believe that neither personality nor intelligence is subject to
change and they feel the need to prove themselves constantly in all situations.
People with a fixed mindset often develop this outlook at an early age, usually due
to some influence from their teachers or parents. Alternately, people with a
"growth mindset" believe that they can improve or change their personality
characteristics over time. They believe that the future offers opportunities to
grow, even during challenging times.
To show the differences between fixed and growth mindsets, an interviewer asked
people what they would do if they got a C+ on a midterm exam and then got a
parking ticket. Faced with accumulated events, people with fixed mindsets said
this situation would prove that "the world is out to get me" or that they were
“Mindsets frame the losers or idiots. People with growth mindsets said they would work harder in
running account that's school and park more carefully.
taking place in people's
heads.” The Impact of Mindset
Mindset has significant implications, although most people are very inaccurate at
estimating their own capabilities. People with a fixed mindset tend to take each
failure personally. They interpret any setback, from being fired to being spurned
romantically, as a message of rejection. Feeling unwanted exacerbates their low
selfesteem. People with fixed mindsets work hard to hide their weaknesses, but
they believe that their relationships, their traits and their partner's traits are all
unchangeable.
In contrast, people with growth mindsets believe they can change their
personality traits. They think their abilities can grow. They are more likely to
build on their talents. They love to learn and they feel frustrated when they are
“The passion for not developing their potential. Having a growth mindset helps people cope with
stretching yourself and stress.
sticking to it, even (or
especially) when it's not Mindset also determines leadership qualities, including how well people perform
going well, is the in school. Medical students with fixed mindsets lost interest in an important class
hallmark of the growth when they earned "C" grades. Accustomed to quick reinforcement, they stopped
mindset.” being interested when they did not earn fast rewards. Students with growth
mindsets thrived as the class became more difficult.
079
Mindsets play a role in the development of "natural" talent. One educational

researcher found that exceptional people, from swimmers to musicians, did not
show their talents until they studied and applied themselves. For instance, Mozart
worked for a decade before he wrote anything memorable. However, inventors
and artists share the ability to learn over time as they mature. They do not rely
solely on their natural abilities. Mindsets are specific to diverse talents, so an
artist may be more open to new ideas, but more restricted socially.
“In the growth mindset, Mindsets affect depressed people. Depressed students with growth mindsets tend
you don't always need to work to solve their depressions while maintaining their school schedules and
confidence.” their outside interests. Students with fixed mindsets become less active and
involved when they become depressed.
People with fixed mindsets react differently to praise than those with growth
mindsets. Children who are praised for their intelligence often tend to adopt a
fixed mindset and to reject new challenges. In tests, they wanted to bask in their
success and did not want to risk revealing any weaknesses. Students who were
told that they had high abilities did not like being asked to solve harder problems.
They said the extra work took away from their enjoyment in learning. At the same
time, students who were praised for making an effort said they liked working on
the harder problems. In trials, praising a child's ability even worked to reduce his
or her IQ score, but praising a child for trying harder raised IQ totals.
“People in a growth Labeling people can be very harmful, from calling children "gifted" or
mindset don't just seek "exceptional" to using negative sexual and racial stereotypes. Such labels actually
challenge, they thrive on can make people feel inferior and generate a negative, selffulfilling prophecy.
it.”
Often, being labeled seems to encourage people to not live up to their potential.
When people believe these stereotypes, they often lie about or exaggerate their
real accomplishments. Other people's opinions can be damaging. When teachers
tell young girls that they may not be good in math or science, it can drive them to
underperform. A study of adolescent boys found that when boys were asked to
validate negative stereotypes about girls, reinforcing those stereotypes boosted
the boys' selfesteem.
Changing Your Mindset

While mindsets produce definite worldviews, people can change them by learning
new skills. Human beings can be taught how to react in new ways, how to face
challenges and think differently. For example, when athletes with a growth
“Telling children they're
mindset challenged themselves, they developed positive character traits.
smart, in the end, made
According to sports researchers, athletes with growth mindsets did not dwell on
them feel dumber and
winning alone. They focused on the process and ignored distractions, enjoying the
act dumber, but claim
they were smarter.” challenge as much as the conclusion. They learned from failure and recognized
that hard work brought personal gain. In contrast, athletes with fixed mindsets
forced themselves to win to show they were better than their competition. When
they lost, they were dejected.
Talent and Teaching

Business today worships talent. This inadvertently has cultivated certain
mindsets. Enron sought talented people with advanced degrees. Problematically,
it also developed an internal culture where people could not fail without harming
their reputations and the company's image. Enron hated to admit mistakes and
valued image highly. When investors probed its activities, the fixed mindset of its
executives led them to be defensive and untruthful.
“In the fixed mindset, the
Research shows that companies with leaders who have a growth mindset tend to
loss of one's self to
seek employees who can address deficiencies and find solutions. These executives
failure can be a
permanent, haunting believe in people's ability to grow and conquer problems. One study compared
trauma.” companies according to their stock value gains or losses. When it contrasted
companies with exceptional growth (as measured by stock prices) against
companies that did not grow, or that realized gains and then faded, it found that
corporate success was tied to leaders who consistently examined the company's
080
processes and challenged its failures. For example, the CEO of Circuit City held
debates in his boardroom to discuss pressing problems so he could question and
learn from other board members.
Another study found that defining a task for students and explaining how success
would be measured could determine what mindset the students developed.
Researchers gave two student groups a high production goal to meet. They told
one group that it would be measured by how much its members knew about a
specific process (engendering a fixed mindset). They told the other students that
“In the fixed mindset, the
they were to develop new skills so they could learn as they worked (spurring a
ideal is instant, perfect
growth mindset). At first, both groups failed to meet the goals. But over time,
and perpetual compati
members of the growth mindset group learned from their mistakes, motivated
bility.”
each other and outproduced the other group.
Coaching and teaching about mindset are productive ways to boost a student's
selfesteem. The key is to show the student that the mentor is interested in
advancing the student, in helping the student's overall growth process.
However, teachers should be careful about their language. Blind praise often
works against students since it can send mixed messages about how fast the
students learn, the effectiveness of their study habits or how much ability they
have. Praise students for their efforts and accomplishments, so they can pursue
more difficult challenges. Children can interpret even innocuous comments such
as "You learn quickly since you are so smart" to mean that learning slowly is bad.
“The fixed mindset
makes you concerned It is also not wise to protect children from failing. Not being the best, or failing,
about judgment, and happens often in life. It is a common occurrence. Parents who focus only on being
this can make you more the best do not provide any substitute position for the child if he or she doesn't
selfconscious and win, leaving the child to blame others, devalue the activity or turn failure into a
anxious.” selffulfilling prophecy.
Open and Shut: Mindset and Leadership

A leader who displays a fixed mindset can set a company up for failure. One
researcher found that corporate executives who focus on their personal
reputations do so at the expense of their companies. For instance, Lee Iacocca
helped resurrect Chrysler, but then he concentrated on his own reputation. While
he was preoccupied, the company declined.
The same researcher found that executives who regard themselves as geniuses or
visionaries do not build great teams. Albert Dunlap, a corporate turnaround
specialist who was always ready to prove himself again, went to Sunbeam in 1996.
“Malcolm Gladwell, the He fired half the employees and saw the stock appreciate so much that he could
author...has suggested not sell the company. Faced with running Sunbeam, he fired people who
that, as a society, we disagreed with him and he had to inflate revenues. Within three years he was
value natural, effortless ousted.
accomplishment over
achievement through Executives with growth mindsets are at the opposite extreme. For example, take
effort.” Jack Welch, who assumed control of GE in 1980 when it was valued at $14
million. Twenty years later, it had a $490billion valuation.
Welsh got GE's top position by admitting that he was not a genius and promising
that he was ready to learn. That pitch worked. He set out to generate more
employee input and to break down arbitrary internal barriers. He frequently met
with assembly line employees to get their opinions.
He once addressed a small club of top GE managers and asked about the group's
plans and activities. About a month later, the club president announced that the
members would become community volunteers and that the club would open its
membership. Two decades later, it has 42,000 members.
“Benjamin Barber, an
eminent sociologist, once
081
said: 'I don't divide the Welch also fired four managers who met their financial goals, but did not live up
world into the weak and to GE's values. He made a costly mistake when GE bought Kidder, Peabody & Co.,
the strong, or the but he learned from it. The purchase cost GE hundreds of millions of dollars and
successes and failures...I taught Welch the fine line between failure and overconfidence.
divide the world into the
learners and the Good leaders have a desire to learn. Studies found that there is no such thing as a
nonlearners'.” "natural leader." People become leaders by changing themselves. Instead of trying
to identify future leaders by their "natural talent," companies should distinguish
leadership candidates based on their individual development potential and then
give them openings to learn new skills. In fact, when companies give employees
new opportunities to learn, they enable individuals to advance, to earn more and
to become better prepared for life's challenges.
In Love and War

People with open mindsets react differently in personal relationships than people
with fixed mindsets. People with fixed mindsets seek spontaneous affiliations and
dramatic breakups. They tend to be slow to forgive since that can be considered a
weakness or could pose the risk of rejection. When relationships go bad, people
“When stereotypes are with fixed mindsets are forced to blame their partners. They deflect any personal
evoked, they fill people's blame. In extreme cases, a person can be so competitive that he or she
minds...with secret overshadows a partner's accomplishments and identity.
worries about
confirming the Your worldview can be a source of happiness or anxiety depending on how you
stereotype.” interpret events and how extremely you react. People with fixed mindsets tend to
be judgmental. Psychologists have used cognitive therapy to encourage people to
ask themselves why they make extreme judgments about others, and whether
their opinions are justified. This is one way to break the fixedmindset cycle and
open new pathways for growth.
About the Author

Carol S. Dweck, Ph.D., is a leading researcher in personality and psychology. A psychology professor at
Stanford University, she formerly taught at Columbia University. She is a member of the American Academy of
Arts and Sciences. She also wrote SelfTheories, which was named Book of the Year by the World Education
Fellowship.
082
Pre-Suasion
What you do before you ask for
A Revolutionary Way to Influence and Persuade something will matter more than how
Robert Cialdini you ask for it.
Simon & Schuster, 2016
Curious about Pre-Suasion? Read our review below. We’re still awaiting
the copyright holder’s go-ahead to summarize this book in our usual
summary format. In the meantime, we hope you’ll find our review just as
helpful.
What happens before

you attempt to influence The Moment Before
people has profound Robert Cialdini author of the New York Times and Wall Street Journal bestseller
effects on whether you Influence, gained renown as an early mover in the field of using an understanding
will influence them or of psychology to gain influence. Cialdini’s books, with Influence foremost, have
not. sold more than three million copies. Here, he returns with a novel idea: what
happens before you attempt to influence people has profound effects on whether
you will influence them or not. He calls this crucial moment “presuasion,” and it
falls before you make a request, ask a favor, present an argument, convince a
client, bargain over price, seek a raise or propose marriage.
Despite its unfortunate, jargony title, Cialdini’s book doesn’t contain the New Age
rambling of a psychobabble guru. Instead, the notable professor and international
consultant provides considerable strategic insight into human interaction, and he
shows you how to apply that insight to get what you want. Even though he’s a
prolix writer with little respect for a short sentence and a great affection for the
firstperson singular, his content is useful and noteworthy.
The notable professor At first glance, this 412page tome appears to provide more than anyone might
and international want to read about presuasion. You may find yourself both relieved and puzzled
consultant provides con to discover that Cialdini uses only 233 pages of it to present his views on that
siderable strategic subject.
The remaining 180 pages make up – shockingly for a commercial venture by a

bestselling author – a complete set of references, extraordinarily detailed notes
and a comprehensive index. These topquality additions suggest the author seeks
not only massmarket acceptance for his ideas, but academic approval as well.
083
12/18/2016 PreSuasion Summary | Robert Cialdini | PDF Download
insight into human For readers inclined toward research and minutiae, the notes may prove even
interaction, and he more engaging than the main section of the book. Cialdini is a rigorous, engaged
shows you how to apply scholar; he cites every source he utilizes and details the context of those sources in
that insight to get what a broader psychological and marketing framework. Whether or not you agree with
you want his main theses, Cialdini clearly knows his field of endeavor and takes great
pleasure in it.
Context and Setup

Cialdini focuses his years of research on the goal of helping you get what you
want. It’s that simple. Everyone, everywhere, every day of the week has to
convince somebody of something. Everyone has to sway people to his or her point
of view. Everybody wants something from somebody. Cialdini describes the
nervous rehearsal people go through when they’re trying to devise just the right
pitch to a spouse, boss, neighbor or coworker. He maintains, surprisingly, that
the content of your pitch seldom determines whether it works. What matters, and
what tips the scale, is what happens right before you make your pitch. Context
and setup – in his term, presuasion – make the difference.
Cialdini is a rigorous,
engaged scholar; he “Before It Is Fought”
cites every source he The Chinese sage Sun Tzu wrote in The Art of War, “Every battle is won before it
utilizes and details the is fought.” Cialdini opens his book with this ancient wisdom. He also cites the
context of those sources great Roman orator Cicero, who understood that what you do before you make an
in a broader psychologi appeal makes all the difference. Cialdini wanted to know what methods of
cal and marketing persuading people “to say yes” consistently succeed across various fields of
framework. endeavor. Studying “salespeople, direct marketers, TV advertisers, frontline
managers” and more, he found that victorious professionals spent the most effort
preparing the ground for their requests. Presuasion, Cialdini argues, is the
practice of making the targets of your appeal “receptive to a message before they
encounter it.”
Basic PreSuasion
Cialdini describes two basic strategies to illustrate his point. A consultant he
knows always tells clients, “As you can tell, I’m not going to be able to charge you
a million dollars for this.” This somehow makes his actual fee sound small, and
most clients accept it without bargaining. A firealarm salesman with a
remarkable percentage of success also revealed his secret: He never pitches
potential customers until they invite him to come inside their homes. He says you
Cialdini focuses his don’t let people into your house unless you trust them. If potential customers
years of research on the trust him, he says, they will buy from him. And they do.
goal of helping you get
what you want. Weighty and Hot
Cialdini explains the persuasive function that metaphors fulfill in daily language.
“That’s a heavy load” might refer to lifting a heavy object or to performing a
difficult emotional task. But metaphors can also persuade “nonverbally.” If an
interviewer reads a job application presented on a heavy – versus a lightweight –
clipboard, the interviewer will regard the applicant as a more serious contender.
The same is true of reports, Cialdini explains. When people read reports
presented in a heavier notebook, the information seems more important. This is
presuasion in action: The physical presentation of the application or the report
sways the reader in its favor before he or she reads a single word.
Cialdini worries that the very lightness of ereaders – a trait that so defines their
appeal might make users value their content less. The weightiness of a print book,
he believes, gives its words and message additional gravitas.
Cialdini wanted to know
what methods of Heat also plays a role in human judgment. Someone holding a hot cup of coffee
persuading people “to feels greater warmth toward those nearby and trusts them more. This can serve as
say yes” consistently a stealth form of presuasion. The person holding the hot coffee – or any warm
succeed across various object – will be more “giving and cooperative.” Thus, you can achieve powerful
fields of endeavor.
presuasion even in silence.
084
12/18/2016 PreSuasion Summary | Robert Cialdini | PDF Download
“Saying or Doing the Right Thing”

Many other simple tactics can help you draw other people toward your position.
To get people to try a new product, ask if they are “adventurous.” If you want
someone to help you, show photographs of people standing near one another. To
inspire someone to achieve, display an image of a “runner winning a race.” To
guide people to consider their options carefully, show them a photo or model of
Auguste Rodin’s statue The Thinker.
Figuring out exactly what you should do or say to support your interests requires
being tuned in to your situation and context. Suit your tactic to the moment, the
person and your persuasive goal.
Presuasion, Cialdini “Commitments”

argues, is the practice of To ensure that someone carries out an enduring positive action after giving you an
making the targets of initial positive response, have that person make a commitment. Doctors in
your appeal “receptive England discovered that calling patients the day before their appointments
to a message before they reduced cancellations by a modest percentage. So did writing down their future
encounter it.” appointments on a card. But, they got the strongest positive effect when the
patients themselves filled in a card at one appointment detailing the time and date
of the next. This made the patient participate in committing – and such
participation made all the difference.
Jargon
PreSuasion isn’t wellwritten, but it’s full of intriguing material. At times,
Cialdini slips into jargon, much of it of his own devising. His final, sumup
paragraph, which he intends to be inspirational, is almost unintelligible. Full
comprehension demands several rereads.
Cialdini would benefit greatly from using shorter sentences, avoiding passive
voice and runon clauses, and demonstrating less love for the sound of his own
voice. He seriously needs an editor to help him understand which of his myriad
Figuring out exactly
examples need multiple pages of description and which need only a sentence or
what you should do or
two.
say to support your
interests requires being
As his lengthy notes indicate, Cialdini – like a lot of researchintensive authors –
tuned in to your
seems far too enamored of every single discovery he’s made. He wants to share
situation and context.
them all.
Suit your tactic to the
moment, the person and
your persuasive goal. Valuable Insights
For many authors, these flaws would be a death knell and would render their
work unreadable. But Cialdini is really onto something. He presents his findings
with vigor, passion and genuine surprise. His profound sincerity about the
findings his research reveals makes his conclusions worthy, helpful and, for those
who embrace them, effective.
About the Author

Arizona State University regents’ professor emeritus of psychology and marketing Robert Cialdini, PhD, is
president and CEO of Influence at Work, a training consultancy. His books, including the bestseller Influence,
have sold more than three million copies worldwide.
085
12/19/2016 Proactive Sales Management Summary | William "Skip" Miller
Book
Proactive Sales Management Sales managers find, recruit, hire,
lead and praise or fire salespeople
and they sell an internal sales
How to Lead, Motivate, and Stay ahead of the Game culture.
William "Skip" Miller
AMACOM, 2001
Buy the book
Recommendation
This book by William "Skip" Miller, a sales veteran and experienced trainer of
sales managers, provides a wealth of information and guidance. Experienced sales
managers will find it useful and new sales managers will find it indispensable.
Miller covers cultural change, goal setting, recruitment, hiring, firing and more.
He pays plenty of attention to daytoday management, albeit in the context of his
"ProActive" sales management program. Use this short, expansive manual as a
handbook. For example, when you need to recruit, hire or terminate someone,
consult the appropriate chapter. The book is easy to read and full of common
sense. getAbstract recommends it highly to its target audience: sales managers.

• How to create a salesoriented culture as a sales manager
• How to set measurable sales goals
• How to recruit, hire and fire salespeople
Take-Aways
• Sales managers need different skills than salespeople.
• Sales managers often waste too much time helping under performers. Spend
your time more productively supporting ace performers.
• Culture is one of the most powerful elements in your sales organization.
• People tend to deliver the performance you expect them to deliver.
• You will get the behavior you measure, so select metrics for the behavior you
want.
• "ProActive" sales managers focus on the future, not the past.
• When seeking new salespeople, ask your best performers to recommend
people they know. Then ask your other salespeople and then ask your
employees at large.
• When interviewing candidates, be careful. The wrong kind of question could
embroil you in a lawsuit.
• If you have to fire someone, do it fast. Comply with all the legal niceties, but
get it done.
086
• Have the discipline to change yourself and your culture.
Summary
The New Sales Manager

The sales manager's job is to lead. People often rise to the rank of sales manager
from a successful career in sales. But the skills required to sell are very different
from the skills required to be a leader and manage a sales force. A few of the
differences are:
“Salespeople must be
customerfocused, and • Salespeople have a customer focus; sales managers have a company focus.
sales managers must be • Salespeople are independent individuals who often love the spotlight; sales
peoplefocused.” managers must work through others and stay in the background.
• Salespeople are talkers; sales managers are listeners.
• Salespeople take direction; sales managers give direction.
The sales manager's job is to help the salespeople focus on their jobs. Your most
important skills are people skills. Moreover, successful sales managers look to the
future, not the past. They view every issue from several perspectives and set
quantifiable objectives with the agreement of their salespeople. Most importantly,
sales managers must exemplify and transmit a culture of selling, as reflected in
their department's values and expectations.
Creating a Sales Culture

“A successful joint sales Culture is a powerful if intangible force. The expectations a culture creates are a
call is like a play whose big part of its personality and influence. Psychological research demonstrates that
roles are carried out people very often do precisely what you expect. That is, people who are expected
according to a to fail, and who know they are expected to fail, come to expect themselves to fail
prearranged script.” and they fail. People who are expected to succeed and who feel that expectation,
come to expect success of themselves and succeed. Managers send messages, not
necessarily in words, but certainly in body language, tone of voice and attention
given or denied. Your sales force receives these messages unambiguously.
Research shows that when poor performers outdo themselves and start to
perform at a stellar level, their managers often react badly. Why? Having formed a
certain expectation, the managers face the difficult task of adjusting to the new
reality. No one likes change. It is easier, though much less productive, to treat
poor performers' excellence as a temporary anomaly, and put them back in their
place. Usually sales managers are not even aware when they are doing this.
Become aware. Because culture is so important, you should:
“Highly competent sales • Examine your organization's culture. Put its most important principles in
managers have the writing.
ability to spend their • Examine the culture of your sales unit.
limited resource on the
... situation that needs to • Write a vision of the culture you would like in your unit a year from today.
be addressed.” • Think of today as the future. What is different from where you were when
you wrote your vision?
• Imagine what you did to establish this change. Since it is easier to look
backward than to peer into the future, this exercise allows you to treat
foresight as hindsight.
• Now write the action steps you imagine you must have taken to shape the
future to fit your vision. These action steps are your plan for the work of
cultural change.
087
Managing Time, Managing People

The three most challenging tasks for nearly all sales managers are managing time,
managing people and setting measurable objectives. These issues are closely
“In a reactive world,
related.
sales managers are
spending much of their
To manage your time more effectively, spend your first hour at work alone. Don't
time trying to do what
check email, talk on the phone or react to the demands of others. Take command
they can to make the
of your day and set your own agenda. Write your objectives for the day and then
numbers.”
pursue them.
Sales managers spend far too much time working with their least valuable, least
productive salespeople. Stellar performers tend to accomplish a lot individually,
and don't ask for much backup. Often, the B and Clevel players are the ones who
have problems or issues, or need help. Ironically, the sales manager could be
much more effective supporting the most productive Alevel people.
Prove this to yourself by charting your salespeople's names, quotas and

performance. Show the difference between performance and quota in the last
column. Probably, you will find that the best salespeople are above quota and the
worst are below it. You will get more impact for your time if you help
overachievers do even more than if you try to boost underachievers to the
“Prioritize and march to minimum level.
your own drum the first
thing every morning. The "ProActive" sales manager disengages from C people by teaching them to do
That's right. Spend the the job themselves. Remember the proverb, "Give a man a fish, and he eats for the
first hour of every day day; teach him to fish and he eats for his whole life." The "ProActive" sales
marching to your manager makes sure that the C players don't slow the sales operation, which must
agenda, and not run at A speed, not C speed. Top salespeople get fed up with anything less than
someone else's.” the best management. They don't like to be second or third best, or to be
associated with mediocrity.
Sales Goals as a Tool

Set measurable, useful sales department objectives. Forwardlooking measures
are best. Don't use revenue as your metric, because you can't change revenue.
Instead, measure:
• Frequencies Measure how many sales calls, calls on major accounts,

proposals, executive sales calls and demonstrations salespeople book. Make
a list of the frequencies they must achieve to generate the results you want,
based on your understanding of, for instance, how many calls it takes to get
a sale.
“The 3 to 1 rule tells you
to try to catch your • Skills This includes communication skills, negotiating skills, time
salespeople doing management skills, customer knowledge skills and others. Your sales force
something right three needs certain skills to get results. Decide what each member needs and
times as often as you measure each one's progress.
criticize them for
something wrong.” You get what you measure. Measure skills and frequency, and you'll get both. Link
the right skills with the right frequency and you'll get revenue as a byproduct.
Building the Team

You need the right people, so you must recruit and interview. In the U.S.,
remember that the law does not allow you to ask potentially discriminatory
questions. In employment decisions, you may not consider race, gender, age,
religion, national origin, physical disabilities that are not relevant to job
performance, arrest records, credit ratings, marital status or whether the person is
a veteran. Don't ask about these factors or discuss them during an interview, in
writing or any other way. If you do, you may find it hard to demonstrate that you
did not discriminate. In this realm, you are guilty until you prove yourself
innocent.
“The golden rule for
hiring candidates is to
088
be ProActive and always Begin your search for the right person by examining your organizational and sales
look. Always look to force culture. What do you want that culture to become? What competencies are
strengthen your bench.” you trying to hire? What does your organization need? Put everything in writing
and then begin your search. You must search proactively. The best sources of good
people are:
• Your best people Ask your sales force to help you with personal leads. You
could even ask them to sound out customers about good people they know.
• Inside your company Ask nonsales force employees for leads. Offer
bonuses and incentives. Put a big TV in the lobby with a sign that says it
belongs to the person who brings in the salesperson you need. Advertise
inside the company. Put up posters that read, "Sales star wanted." Include
tearoff tags with your phone number, like the posters people put up when
they are trying to find lost pets.
• Outside the company Make professional, discreet overtures. Make the
“Try to interview in the
most of online job search sites. Use job fairs, company open houses and the
morning and interview
as early in the week as like.
possible. The pressures • Recruiters Use these services cautiously and after investigation. You will
of the day seem to mount be allowing them to represent you to people you want and you must not be
in the afternoon and misrepresented.
later in the week.”
• Advertise publicly as a last resort Write your ad from the perspective of the
candidate. Convince the best people to contact you. Don't blow your own
horn.
As you embark on the interview process, waste as little time as possible with
mediocre or unsuitable candidates, but treat them courteously and professionally.
Invest most of your time in excellent candidates, without tipping the playing field
so far in their favor that it puts you at a negotiating disadvantage later. Approach
the interview process in three stages:
1. See as many people as you can in a first round of interviews. Make the
setting relaxed, natural and reasonably public (never interview in a hotel
room). After this round, decide which candidates are the best. You'll
“Have two sources do probably have two or three.
reference checks ... Too
many managers have 2. Arrange for others in the organization to interview your top candidates. Tell
treated a reference check the interviewers what you are seeking and what you would like them to
lightly, hearing only focus on.
what they want to hear, 3. Once you identify your top candidate, arrange for your salespeople or others
not what really is being in the firm to have a lunch or some other offsite session with him or her to
said.” get a sense of the cultural fit.
Don't think of the interview as an interview. Think of it as a sales call. Use your
best people skills and communication techniques to read the candidate as you
would a customer. Stay in control, unless the candidate is effective enough to take
control by applying superior skills. That, by the way, is a very good sign. Look for
a sales candidate who practices the flip, turning your question around on you.
Look for someone who probes for the real reasons behind your initially stated
reasons. Look for a candidate who knows how to close.
Carefully check references. In fact, have two people check references, one of
whom should not be involved in sales. It helps to have another set of eyes looking
at references.
“It is always good to
change one's perspective Discipline and Correction
in the corrective action Correction is necessary when you are dealing with ethical violations and poor
process.” performance or in cases where retraining would cost more than hiring.
089
As the last implies, the corrective process is a final chance. You are putting the
employee on notice that he or she faces only two alternatives: change or
terminate. Do be considerate. Do empathize. Do understand that the employee is
probably emotional and under stress. But do what you have to do. That also
means complying carefully with all the laws governing dismissal. Consult your
company's lawyers to be sure. Give the employee a written warning. Use
measurements and data to support your judgment. Provide counseling. Give a
final warning in writing. Then fire the underperformer. When you fire someone:
“The idea of rewards can • Use a room that is not your office You can't leave your office. You want to
be a costly investment if be in control of how long you stay. Use your judgment about firing by phone
not done right.”
or in person.
• Don't waste time Fire the employee as soon as you walk in the door. Say,
"The reason I am here right now is to inform you that this is your last day of
employment with this company."
• Don't take any risks Fired employees might get violent toward you or
toward themselves.
• Never fire someone on Friday if you can help it The employee can't call
recruiters or other companies on Saturday. The only thing the employee can
do is muse about you, about how you just fired him or her, and how unfair
you are, after all he or she has given. If you fire people on Tuesday or
Wednesday, they can make some calls and start to think of alternative
opportunities.
“Great leaders are great
• Know when to leave If the employee mentions contacting a lawyer, stop
communicators.”
talking and leave the room. You'll want your own lawyers to handle anything
with legal implications.
There's the door Get the fired person out of the building immediately, if not
sooner.
About the Author

William "Skip" Miller is president of M3 Learning, a ProActive sales and sales management company, and
founder of The Advanced Sales School.
090
12/19/2016 Sales Management. Simplified. Summary | Mike Weinberg
Book
Sales Management. The deck is stacked against sales
managers. Indeed, some firms
Simplified. unwittingly prevent their sales
managers from reaching sales
The Straight Truth About Getting Exceptional Results from
success.
Your Sales Team
Mike Weinberg
AMACOM, 2015
Buy the book
Recommendation
In most companies, sales managers have virtually no control over their time or
calendars and often must waste time handling petty tasks and attending meetings
that have nothing to do with sales. The time sales managers devote to unrelated
activities and other distractions often prevents them from leading their sales
teams more effectively and generating new business. Corporate duties force many
sales managers to abandon sales management basics – coaching and mentoring
salespeople, running sales meetings, working with salespeople in the field, and so
on. Sales consultant Mike Weinberg details how sales managers can regain
control and propel their teams to better sales. He also shows CEOs how to develop
and sustain salesfriendly corporate cultures. getAbstract recommends
Weinberg’s masterful, clearly written advice to executives, sales managers and
salespeople across a wide variety of industries.

• What common problems burden sales managers
• How to solve these problems
• What an annual sales plan should accomplish
• How to create an ideal sales culture
• How to manage sales talent
Take-Aways
• Sales managers face myriad problems that stem from their companies,
bosses and corporate culture. Sales managers also inflict some problems on
themselves.
• Sales managers can’t do their jobs if they spend their time meeting,
reporting, emailing and obsessing over customer relationship management
programs on their computers
• Many sales managers search for nonexistent “magic bullets” to fix these
problems.
• Sales managers should stick to the basics: coaching and mentoring
salespeople, running sales meetings, equipping salespeople for success, and
monitoring their efforts.
091
• Leadership and corporate culture matter more for sales success than
salespeople’s skills.
• The “sales story” – or, elevator pitch – is the best way to get a prospect’s
attention.
• Although sales reports are vital to selling, many companies no longer rely on
them.
• Salespeople need clear goals to be successful.
• Salespeople must push for new business and concentrate on customer issues
and concerns, not on products and features.
• Create a sales plan that identifies each salesperson’s goals, strategies and
actions; discusses obstacles to the plan; and accommodates his or her
professional development.
Summary
Sales Challenges
Sales managers face many problems, some of which they create for themselves.
Others result from senior executives who impose unrealistic demands or from
corporate cultures that work against salespeople and their leaders. If a sales
“The sales world works a
lot better when sales manager performs poorly, so will the salespeople on his or her team. Salespeople
leaders focus on their create problems for their managers and their departments when they concentrate
primary job: leading the on products and features rather than on their customers’ concerns, and when they
sales team and helping fail to push for new business.
to drive revenue.”
Common salesmanagement problems include managing sales staffers, leading
direct sales, coping with sales compensation plans, working in an unsupportive
corporate culture, and coping with leaders who judge salespeople by how busy
they seem to be and not by how much new business they create.
In some organizations, sales managers must manage multiple tasks unrelated to

selling while also responding to hundreds of daily emails. Customer relationship
management (CRM) – which, ironically, should improve the overall sales function
– is often a bothersome distraction. Many companies demand that sales managers
“As the sales leader…it’s spend more time dealing with their CRM systems than helping salespeople
your job to point to the generate new sales and revenues.
sales goal and tell the
troops that we are going Some sales managers get promoted into their jobs from positions outside of sales.
to hit it; we are going to Those who enter sales with management experience but no sales chops can
win!” contribute little practical knowledge about selling. Or a firm may take excellent
salespeople with no known leadership abilities and promote them into sales
management. Their sales teams suffer as a result.
Sales Managers Who Don’t Manage

When an organization’s revenue falls below par and salespeople fail to meet their
quotas, the fault usually resides with sales directors who manage ineffectively. For
example, they may fail to coach their people, to differentiate the specific talents
that different sales jobs require, or to monitor their sales calls and go over their
performance with them later.
“To create sustainable
sales performance… Some sales managers don’t give sufficient attention to achieving their sales
improve the company’s objectives. They don’t effectively communicate sales goals or clarify how they will
sales culture and how evaluate salespeople’s performance. They don't institute processes to monitor
the team is led, the way sellers’ work against set goals. Some sales managers want to be the department’s
sales talent is managed selling “hero,” so they deflate salespeople’s confidence.
and the sales process.”
The Plusses and Minuses of Sales Reports
092
Companies rely on sales reports to track performance. These reports compare

sales yeartoyear, measure achievement toward monthly and annual quotas, rank
salespeople based on how much they increased their sales over earlier previous
periods, tally new accounts and lost accounts, and calculate what percentage of
their yearly targets the sales staff hit.
Sales reports are essential, but many companies stopped publishing or

“There is almost nothing distributing them after the 2008 financial crisis. With sales plummeting,
similar about being a corporate leaders took a “paternalistic approach” and decided not to embarrass
sales manager and
their salespeople with reports of plummeting sales. They also pragmatically
being an individual
downplayed sales reports for public consumption and reconfigured compensation
producer in a sales role.”
plans in order to retain their best people during the harsh economic times.
Sales Management Challenges and Solutions

Sales management encompasses more than selling. A sales leader deals with a big
todo list that encompasses building a salesoriented corporate culture,
conducting strategic planning, setting sales targets and making the team
accountable for its results.
Sales managers also handle a myriad of HRrelated concerns, including

“You cannot manage recruiting, hiring, training, setting compensation and reward levels, maintain
salespeople, whose good internal relationships, mentoring, coaching, retaining good people, and
primary job is to redirecting or dismissing people who fail to sell.
interact with other
people, by staring into To establish your “sales management framework” and to increase your team’s
your CRM screen.” sales in dollar value and volume, focus on these three areas:
1. “Sales Leadership and Culture”

To create a positive sales culture, identify the “attitudes, values, goals and
practices” that the professionals in your sales organization share with each other.
Companies that revere the sales function carefully monitor superior sales
performance and hold it out as a common goal. Salespeople hold themselves
accountable. Sales meetings are positive experiences for everyone. And the sales
compensation program rewards the right factors.
“If you’re not teaching A positive sales culture energizes an organization. Executives are in active and
selling skills in sales regular touch with sales personnel. Salespeople are members of an “elite” crew.
team meetings…and They love to compete. They have great attitudes. They pay attention to the sales
working in the field board and strive to be on top. They push each other to do well. They celebrate
rotating through
each other’s successes and feel proud of their pivotal role in the firm.
members of the sales
team, then who is
helping your salespeople 2. “Talent Management”
become more Recruit, deploy and retain the most talented professionals you can find and do all
proficient?” you can to maximize their potential.
Expert talent management involves “four R’s”:
• “Right people in the right roles” – According to the traditional

“hunterfarmer” sales paradigm, hunters excel at prospecting and securing
new business. Farmers – or, for a better name, “zookeepers” – excel at
managing and nurturing established accounts. Don’t assign hunters to
farmerzookeeper jobs, or viceversa.
• “Retain top producers” – These highmaintenance salespeople will
“A salesperson is not a quickly jump ship if they aren’t happy. Give them what they need to produce
salesperson is not a at their best.
salesperson. There are
as many types of sales • “Remediate or replace underperformers” – Many sales managers
roles as there are colors tolerate lackluster results, but salespeople who constantly underperform
of crayons.” send a negative message to everyone else. However, don’t cut new poorly
performing salespeople too quickly. Give them time to prove themselves.
Train and work with them. If their performance doesn’t improve over time,
093
then let them. This shows that you believe in and nurture your team and
that you insist upon results.
• “Recruit” – Bringing in top sales talent isn't enough. You must maintain a
strong bench; that is, have numerous excellent candidates ready to join your
team if you need them. Effective sales managers always make time for
recruiting.
“True sales hunters are a
unique…breed. The 3. The “Sales Process”
majority of sales teams
Successful sales managers help their team members target the most promising
are composed mostly of
prospects. This includes potential new customers as well as current customers
farmers (account
managers) and who are ready for upgrades or expansion. However, too many sales managers
engineers don’t take this essential step. They mistakenly believe their salespeople all are
(product/service already operating with welldeveloped marketing lists, but many salespeople don’t
experts).” prepare strategic plans for reaching the best prospects.
Salespeople don’t get paid based on how many prospects they contact. Results are
what counts, based on how many prospects they close. This is why sales managers
must make sure that their salespeople plan and prospect strategically.
Managers should coach their team members to examine whether the accounts
they are pursuing offer the best opportunity to close new business; whether they
are in a rut, just contacting the same old customers and prospects, and nobody
new; whether they should manage their accounts or territory differently to be
more strategic; and whether their customer relationship management work is up
“A flat compensation
todate.
plan accomplishes the
opposite of what a smart
plan should. It provides The “Sales Story”
underperformers Sales managers must make sure their salespeople have the resources they need to
comfort to stick around do their jobs and that they become expert in the use of social media and the best
while simultaneously professional tools, tactics and strategies. This includes the training and ability to
discouraging the over ask “probing questions,” make good presentations, and offer “facility tours and
achievers.” references.”
Make sure your salespeople are prepared, ready for sales calls and properly
equipped. Have they researched their prospects sufficiently in advance of a sales
meeting? Do they know how to solicit the prospect’s “input and buyin”? Do they
have the right set of questions to get the conversation going?
Sales managers need to teach salespeople the importance of their sales story,
elevator pitch or value proposition. A seller’s sales story should be a well
organized compendium of all the relevant product or service talking points. A
“Customers are not sales story that is simple to communicate and understand is valuable across of all
looking for subservient your marketing efforts.
order takers; they are
seeking help and value.” Good sales stories secure your clients’ attention, demonstrate why and how your
offering solves their problems, validates your pricing, differentiates your offering,
and positions your salespeople as experts.
The Annual Sales Plan

Sales managers must monitor their salespeople to ensure they stick to their sales
plans. This presumes your salespeople prepare annual sales plans for themselves.
People are more likely to succeed if they write their goals in advance. Sales plans
should include these components:
“When results are poor • “Goals” – Set defined objectives. Some possible metrics are “total revenue
and the pipeline is weak,
or gross margin goals for the year, number of new accounts or new pieces of
asking a salesperson
business acquired, dollars sold to both existing and new accounts, and
about activity is simply
specific productmix goals.”
good management, not
micromanagement.” • “Strategies” – Salespeople need a blueprint and a set of tactics for
achieving their goals.
094
• “Actions” – Positive steps include “calls, initial facetoface meetings,

presentations,” and so on.
• “Obstacles” – Sales managers and their teams often must overcome poor
training, a learning curve about their customers, restrictive corporate
policies, insufficient travel funds, outdated technology, and so on.
• “Personal development, growth and motivation” – Your salespeople
need specific motivation, tools and techniques for continual learning and
“The perpetual barrage improvement.
of new sales ideas,
theories, processes and
Besides creating sales plans, salespeople must report their sales activities and
tools, combined with the
results, and identify the prospects in their pipelines. Sales managers must
loud voices of the
monitor these reports to gather the information they need about their sales teams.
hucksters marketing
Be sure the right forms are prepared and available.
them, can overwhelm
sales leaders.”
“Magic Bullets”
To improve sales management, many sales supervisors are looking for a magic
bullet that “guarantees unlimited qualified leads, a full pipeline and the ability to
close every deal at full price.” But the sales world hasn’t got a magic bullet and you
don’t need one if you stick to the basics of selling. The fundamentals always work
if your product or service offers the right value.
Sales managers must focus on the essentials. Their primary purpose is to get their
team to build revenues through increased sales. Conversely, their purpose is not
“If you fail at sales, then to work “a bazillion” hours a week, to attend an “obscene number of meetings,” to
there’s no quality to send and receive hundreds of daily emails, or to be Mr. FixIt for the company’s
control, no product to various problems. “You were not hired to do work; you were put in your position
ship, no customer to to produce results.”
service, no revenue to
count. Period.”
About the Author

Sales coach and frequent public speaker Mike Weinberg is an experienced salesperson and consultant. He also
wrote the bestseller New Sales. Simplified.: The Essential Handbook for Prospecting and New Business
Development.
095
12/19/2016 Selling 101 Zig Ziglar PDF Instant Download
Book
Selling 101 Everything you need to know about
What Every Successful Sales Professional Needs to Know selling in a tidy package, from
prospecting to presenting to closing
Zig Ziglar
the deal.
Nelson Publishers, 2003
Buy the book
Recommendation
Seldom is a book as aptly named as Selling 101. This is a true primer on the ABC’s
of selling. Author and sales expert Zig Ziglar walks you through the sales process,
teaching you how to find prospects, overcome "call reluctance," pose the right
questions and ask for the order. He touches on all of the fundamentals, using
examples from his experiences to illustrate his main points. His brief, concise
prose is easy to understand and even easier to incorporate into your sales
practices. The seasoned sales professional will not find anything new in this basic
textbook, but getAbstract recommends it to anyone who is new to selling,
particularly if you lack a mentor to give you this kind of guidance. This handy
manual will provide knowhow that is usually gained only by experience in the
field.

• How to master the basics of selling from prospecting to closing
• How to use a fourstep selling process to assess your prospect’s needs
Take-Aways
• As a salesperson, you are your own boss and you control your own destiny.
• Successful salespeople are always prospecting.
• Develop a "center of influence" by asking someone who believes in you to
introduce you to people who would benefit from your product or service.
• Overcome "call reluctance" by committing to making calls at the same time
daily.
• Follow the fourstep selling process: "Need Analysis, Need Awareness, Need
Solution and Need Satisfaction."
• During the sales process, ask questions that elicit the prospect’s thoughts,
feelings and emotions.
• Ask "opendoor, closeddoor and yesorno" questions.
• To conduct a conversation, not an interrogation, use the "P.O.G.O formula."
Ask about the Person, the Organization, and the person’s Goals and
Obstacles.
096
• Always ask for the sale. Practice closing techniques until they feel natural.
• Make sure your customers are happy and satisfied with your product or
service.
Summary
Why Do You Want to Sell?

Sales professionals are treated offensively now and then, and they experience
rejection not once, but numerous times. They are subjected to feelings of
frustration, paranoia, anxiety, nervousness, discouragement and selfdoubt. So
why would anyone want to pursue a career in sales? The reason is that for the
“To be the winner you
right person, the upside of selling far outweighs the negatives. As a salesperson,
are capable of becoming,
you are your own boss no matter what company employs you or which supervisor
you must plan to win;
you must prepare to checks your call sheets. This is a huge responsibility, but it offers a tremendous
win; and then you have opportunity. You control your own destiny. Realizing your dreams is within your
every right to expect to power. Salespeople, or "professional persuaders," are in the problemsolving
win.” business, which is tremendously gratifying. Nothing compares to making a sale
while also helping others through the product or service you offer.
Every salesperson must possess certain skills regardless of what he or she is

selling. To succeed in the longterm, today’s sales professional must be honest,
embody integrity and behave ethically. The skills required to build a successful
sales career include trustworthiness, dependability, and the ability to listen well
and communicate clearly.
Prospecting for Gold

The first step in making a sale is finding a prospect. "A prospect is an individual or
a group capable of making the decision on the product or service the salesperson
“K.I.S.S. Keep It Simple is selling." Successful salespeople are always prospecting, a task that does not
Salesman has been the conclude at the end of the workday. Exhibiting a genuine, unaffected interest in
battle cry since the cave people is the best way to attract prospects. Some people are reluctant to sell to
dwellers sold each other their friends and relatives, afraid that they will appear pushy or greedy. However,
fire sticks.” if you truly believe in your product, you will want to share it with the people
closest to you. You don’t want them to do you a favor by buying; you want to do
them a favor by selling your product or service to them.
To ask for prospect referrals, develop a "center of influence" by asking someone

who believes in you to introduce you by phone or note to someone he or she
thinks would benefit from your product. Obtain the names of several potential
clients from your center of influence contacts. Record their names and pertinent
information on a prospect card. Then, ask your referrer to help you prioritize your
list.
Other sources for prospects include newspapers, Dun & Bradstreet, various Web
“I strongly encourage sites, the book Contacts Influential: Commerce and Industry Directory, your local
those in the world of Chamber of Commerce, the Better Business Bureau and trade publications.
selling to deal with a
product or service they To prepare to contact prospects, learn all you can about your product, industry
cannot help talking and competition. Become an expert by reading trade publications, studying
about!” trends, gathering information and demonstrating how to use your product or
service. Then, you'll be ready to ask the right questions, uncover prospective
clients’ needs and offer informed solutions.
Conquering "Call Reluctance"

Making sales calls is tough. In fact, 84% of all salespeople experience some form
of call reluctance. To overcome it, realize that you are an expert in your field. No
one knows as much about your product or service as you do. Next, make your
097
sales calls substantial by focusing on the prospect, not the sale. Remember, "You
can have everything in life you want if you will just help enough other people get
what they want."
“Asking the right When making phone calls, set objectives such as making an appointment or
question and listening to closing a sale before dialing. Make your calls first thing in the morning when
the answer is a great re people are fresh and ready to listen. Dress professionally to make your calls even
lationship builder, which
though the prospect can’t see you. Prepare, train, stay motivated and make calls
is important to the
when your energy and confidence are high.
persuasion process.”
The critical step in conquering call reluctance is to "get on a regular schedule and
make an appointment with yourself to contact a prospect at the same time every
day." One of the main reasons salespeople fail, particularly salespeople who are
not directly supervised, is that they do not commit to a regular schedule.
The Four Steps

Sales don’t happen by accident. Today’s successful sales professional must
develop and follow a plan of action. The author’s "Ziglar Training System" teaches
a fourstep selling process.
“Selling with integrity is 1. "Need Analysis"

the only way you can "People buy what they want when they want it more than they want the money it
build a longterm career costs." For example, people want cell phones because they like hightech gizmos
with the same company and they want the cool things their friends have. However, they also buy cell
selling the same product phones to get convenient communication and reliable accessibility. The trick is to
to the same people uncover your prospect’s needs by asking the right questions and listening to the
which brings sales answers carefully. When you offer someone a reason or an excuse to buy
stability and financial something he or she already wants and needs, you'll make a sale.
security.”
2. "Need Awareness"
Once you identify a client’s need, it is imperative that he or she also recognizes the
specifics of the need. Create awareness with questions that clarify the need to the
prospect. Highlight the imbalance your prospect is trying to fix with queries based
on your "product, industry, pricing, application and competition."
3. "Need Solution"
Now is the time to talk about your product or service. You have identified a need
and can offer a solution: your product. When presenting your product, remember
that "people don’t buy products," they buy benefits. Always tell potential clients
“True selling profession what your product can do for them.
als don’t talk about
ethics; they live 4. "Need Satisfaction"
ethically.” You have uncovered your prospects’ needs and have a solution in the form of your
product. When offering your solution, it is imperative to "lead with the need."
Salespeople often talk about "features, function and benefit" but what do these
terms mean to clients? A feature is an aspect of your product. The function is the
purpose of the feature and the benefit is the advantage this feature offers your
client. Start with the client’s needs, but follow up by asking for the order.
"Asking Questions"
Conducting a needs analysis requires you to ask questions. Pose questions that are
designed to elicit the prospect’s feelings, thoughts and emotions. Understand that
people make purchases based on emotions and then rationalize their purchases
with logic. For instance, after you make a presentation based on savings, ask
“In sales you don’t have
to wait for things to questions such as, "Are you interested in saving money" or "Can you see where
happen; you can make our product would save you money?"
things happen.”
098
To get the information you seek during needs analysis, ask "opendoor, closed
door and yesorno questions." Opendoor questions allow the prospect to answer
any way he or she prefers. "What is the most exciting aspect of your job?" and
"How do you see your responsibilities changing in the next five years?" are open
door questions. Closeddoor questions such as, "How does your division
compare in size to the other divisions in this company?" require the prospect to
answer within a certain framework. A yesorno question requires a direct
response and is often useful as a trial closing. For example, after you make a
presentation you might ask, "Would what I’m proposing fit into your goals?"
“Organization, discipline
and commitment make
for consistent high Conversation versus Interrogation
volume production.” Making calls is easier if you know how to engage potential customers in a relaxed,
natural chat. To conduct a conversation, not an interrogation, use the "P.O.G.O
formula."
"P" stands for "Person"

Learn about your prospects’ thoughts, feelings, goals and emotions by
encouraging them to talk about themselves. Never spend more than 25% of the
time talking about yourself. "P" questions include: "How did you get into this
particular business?" and "Do you like living in Dallas?"
"O" stands for "Organization"

Next, learn about your prospect’s company. Again, refrain from monopolizing the
“Remember: You do not conversation. Pose such questions as: "Would you tell me something about
invent or create the
your organization?"
needs. That’s not selling.
You uncover a need or
problem that is already "G" stands for "Goals"
there and, in the process, Elicit your prospect’s personal and professional ambitions. Ask something like:
render a solution, a real "How are you currently tracking the progress of your goals?"
service.”
"O" stands for "Obstacles"
Everyone encounters obstacles to achieving their goals. If you can find out what
challenges your prospect faces, you can offer a solution. Ask a question such as:
"What is preventing you from being where you want to be?"
Closing: How to Seal the Deal

When you are confident about the value of your product or service, complete the
first three steps of the selling process, and feel genuinely committed to making a
sale, the odds are in your favor. If you are competent, professional, authentic and
friendly, your prospect will be reluctant to say "no" to your proposal. But first, you
“Personalize the benefits must ask for the sale. Find closing techniques that work for you and practice them
for the prospect.” until they feel quite natural. One technique you can use is the "summary close,"
which calls for reviewing the high points of your presentation and asking for the
order.
Getting Beyond "No"

What if your customer says "no"? Some sales experts contend that 60% of sales
only occur after the prospect has said "no" five times! Assume that your prospect
is turning you down because he or she doesn’t know enough about your product to
move forward. This gives you the opportunity to offer new information regarding
features, functions and benefits that he or she can use as the basis for a positive
decision.
“Your value to your Ask questions that identify the prospect’s objection. Then test the objection to see
company comes if it is real. The "Suppose" test asks the potential customer to answer a
basically from the skills hypothetical question that sounds something like: "Suppose you felt good about
you develop in dealing (fill in the right factor), then would you make a yes decision?" The other method
with everybody,
including...disgruntled
099
customers and for testing an objection is to "isolate and validate." In this process, ask: "Is there
prospects, in an effective any other reason that would prevent you from taking advantage of my offer
and professional today?" After you answer two objections, move on and ask for the order again.
manner.”
Customer Service
The sale does not end when you get the order. You must continue to work with
your customers to make sure they are satisfied. If a client is dissatisfied, you
should react professionally and calmly. Help find a new solution. When a person
understands that you are truly trying to help, that knowledge will quickly diffuse
his or her anger. When dealing with an unhappy customer, keep the following in
mind:
• "Hear them out let the anger erupt."

• "Be patient" and "Be tactful."
“Discipline yourself to do • "Empathize."
the things you need to do • "Acknowledge their importance."
when you need to do
them and the day will • "Articulate your response slowly, quietly and carefully."
come when you will be • "Never grant them permission to control you."
able to do the things you
want to do when you
want to do them!” Getting the Most Out of Your Time
Most salespeople spend 80% of their time on nonsales activities. Learn to
structure your workday so that you spend as many hours as possible with
prospects. Outwork and outperform your competition by investing one extra hour
per day in productive tasks, such as making phone calls. Delegate nonselling tasks
when possible. Many salespeople find it useful to have a system that makes them
accountable and to log their use of time.
About the Author

Zig Ziglar is a popular motivational speaker. He has written 22 books about personal development, sales,
leadership and success. His bestsellers include See You at the Top, Secrets of Closing the Sale and Success for
Dummies.
100
12/19/2016 Selling to Big Companies Summary | Jill Konrath
Book
Selling to Big Companies The first step to selling to a big
Jill Konrath corporation is getting a meeting with
Kaplan Publishing, 2005 a real decision maker. Think value,
Buy the book persistence and precision.
Recommendation
This succinct, concise, pointed, clearly written guide will help anyone who aims to
sell to big companies. Author Jill Konrath is practical, focused and nononsense.
She includes few of the personal yarns that freckle most such manuals, but
enough to let readers know that she writes from experience. Much of what she
says is common sense and should be general knowledge. For example, it is hard to
imagine that any salesperson would waste time on selfpromotion when
customers really need and want solutions to their own problems. Yet many sales
guides including this one emphasize the need to ask questions and offer
solutions, so the emphasis must be necessary. The author provides a
straightforward howto manual, with stepbystep guides. She is not afraid to
tackle the most elementary matters, such as how to write a letter or how to script
a call. getAbstract finds that this book deserves a place on the shelf of any sales
manager or salesperson who is targeting big companies.

• Why selling to big companies is different from selling to small companies
• What you can do to succeed in the bigcompany sales game
Take-Aways
• Selling to big companies takes a specific professional approach.
• The decision makers at big companies face enormous pressure and are
looking for people who will help them solve problems. They avoid
salespeople.
• Getting meetings with buyers at big companies isn’t easy. You need
knowledge, precision, persistence and the right message: specific value for
the customer.
• In today’s competitive environment, you have to shout to be heard.
• To understand your own value proposition, interview your current
customers.
• Weak value propositions kill sales. Your value must be crystal clear and
quite specific. Pack your focused value proposition into a quick message.
• Research, research, research there is no substitute for homework.
101
• Make corporate gatekeepers into your allies; they can be gate openers.
• Script your calls, voicemail messages, emails and letters so they express
your value proposition in a compelling manner ask for honest feedback
about them.
• Avoid selfpromotion it turns customers off and sends them away.
Summary
No Callbacks?
Arranging sales meetings with decision makers at big companies is very difficult.
If you find this to be true, you’re not alone and you’re not imagining it. Moreover,
it probably won’t get easier. Many market factors are coming together to make big
companies even tougher to penetrate. They are globalizing, constantly
“Corporate decision reorganizing, restructuring and downsizing. Their people are trying to do more
makers want you to with less. They are dealing with constant change and are not eager to embrace any
bring them ideas, make more of it. Technology has made information more widely available to decision
them think and expand makers, including the kind of inside product information that only sales reps used
their perspectives on
to provide. Moreover, competition is getting stiffer; even the best product attracts
what it takes to run their
a host of competitors in no time at all. Corporate decision makers aren’t inhuman
firms successfully.”
or superhuman. They’re ordinary Joes and Janes who work for giant corporations.
They avoid selfserving, selfpromoting salespeople. You must find a new way to
get through to them. Remember:
• Decision makers are under the gun. Don’t even think of wasting their time.
• You compete with the status quo.
• Nobody wants to hear your sales pitch.
• You have to make your value clear from the outset.
Sell Where You Can Make a Difference

Focus is critical. Don’t try to sell to everyone. Since you must become an expert on
“It’s easier to get into big your customer’s business, define your market carefully. Eliminate some
companies if you break opportunities so you can do a better job with those that remain. Analyze your
them down into smaller customer base. What has made you successful with these customers? The answer
sections; pursue oppor will define your competitive advantage. Follow these tips as you draft your value
tunities with functional proposition:
areas or departments
within divisions for the
• A solid value proposition focuses on the return and benefit a customer
easiest account
derives.
penetration.”
• Salespeople fail to penetrate big companies because their value propositions
are weak.
• Value propositions must be specific. Include quantitative information: how
much cost reduction, how much time saving and how much productivity
improvement.
• Value propositions are about value, which may be tangible or intangible,
may reduce opportunity costs, and may have different aspects that appeal to
different prospects.
• You are an instrument. Your product or service only matters to your
prospect if he or she can use it to solve a problem or do a better job.
“Show your value,

Toward a Stronger Value Proposition
demonstrate your worth
Interview your current customers and ask why they use your product or service.
and make a difference.”
What have you helped them do that they were previously unable to do? Quantify
these benefits with numbers. Use accepted business or industry language, and
support your case with hard facts. Your value proposition should talk about
102
results, not features. Link it to important business problems by using quantitative

measurements and statistics. Cite actual cases, because success stories sell. Never
approach a big company’s decision maker without a solid, strong value
proposition. To show value to customers, learn all you can about their companies.
Getting in the Door

One key opens the door to major corporate accounts: knowledge. Do your
homework before you make your first call. Use research to determine if your
product or service will help your prospect. You will only have a few moments with
“When you’re defining a major corporate decision maker, so get ready to use your time to ask intelligent
your value proposition, questions and offer good ideas that will make a bottomline difference. In those
first examine where the few moments, you must make yourself stand out as superior to any other
impact of your offering
salesperson, and more valuable. Your initial research should:
can most easily be
quantified.”
• Help you find the entry point You have to get in the door. Forget the main
switchboard; seek specific targets. Big firms have many divisions and units.
Identify the ones most appropriate to your product. Don’t waste your time
or the prospect’s.
• Teach you the prospect’s business Know broad industry trends, how your
prospect is responding to them, any organizational changes at your
prospect’s company, your prospect’s big initiatives, what makes the
company successful, what business issues matter most to it, the company’s
financial performance, its important decision makers, and its main
products, services, competitors and customers.
• Show you the openings Openings include actual problems you can use as
opportunities if you can show how your product handles them. If you are a
“A value proposition is a
sales trader, note a slowdown in sales, a new product introduction or a new
clear statement of the
market entry.
tangible results a
customer gets from • Speak the prospect’s language Every company has its own lingo. Learn it.
using your products or Imitate it. When you talk with the company’s people, you want to sound like
services. It is focused on an insider.
outcomes and stresses
the business value of Use corporate Web sites, which are excellent sources of specific information. You
your offering.” can get financial information from many online resources, such as the SEC’s
Edgar, the Thomas Register and others. Don’t be afraid to interview your
prospect’s customers, employees or any other knowledgeable people. You might
even test the prospect’s product or service by ordering it. Be alert to triggering
events, such as mergers, ownership changes, shifts in targeted earnings, new
clients or new products. Such triggering events can help you craft a better value
proposition and make it more relevant to the prospect.
The News about Networking

The news about networking is that much of it doesn’t work and most networking
events are useless for sales. Corporate decision makers don’t attend them. Making
your networking effective requires enormous effort, including sculpting the right
“Sometimes it’s difficult elevator speech a scaleddown version of your value proposition focusing on
or nearly impossible to problems, benefits and opportunities. Once you have your elevator speech, find
measure the value of creative ways to meet relevant people.
what you do. If this
happens to be your Use your contacts, such as salespeople in related markets, friends, fellow alumni
situation, use industry or suppliers. Attend events your prospects are likely to attend, such as trade
statistics.” shows and big conferences. Consider a strategic alliance. Look for partners who
could benefit from offering a collaborative solution to a major company’s
problem. Today’s market demands innovation and creativity in networking as in
other things. For instance, tell people which companies you are trying to reach.
They may have helpful information. Sometimes, you can reach a decision maker
through the friend of a friend of a friend. Don’t be shy.
Getting to the Decision Maker
103
First, identify the decision maker. Look for people in certain positions in the
company. Most big companies have mechanisms to keep people like you away
from their decision makers. So instead of trying to find the vice president of this
or that, look for the person responsible for specific decisions. Ask for people who
“Top sellers constantly have certain kinds of problems. When you are just trying to get the right names,
think about how they don’t do any selling. Only ask questions.
can help customers
improve their business.” Some useful telephone strategies may help you to find the people you seek. One
trick is to get all of the phone numbers for the company’s operations in the area
you are targeting. If you call satellite locations instead of the main corporate
location, you will reach people who don’t get very many calls and who may be
more willing to release names. Calls to the main corporate switchboard often flow
directly into voice mail. That’s one way companies avoid calls from salespeople.
Other useful strategies are:
• Call a sales representative for the division you’re trying to penetrate,

because sales reps sometimes will empathize with you.
• Call the highestranking honcho in the unit you’re trying to penetrate. You’ll
probably reach the honcho’s assistant who can route you to the correct
subordinate.
“While most sellers
balked at scripts, they’re • Use the "contact us" page on the company’s Web site to get the number you
absolutely necessary to need.
ensure delivery of the • Contact a small office of a big company. Even if it is far from the main
right message and to location, people there may help you.
prevent you from
sounding like a • Get the basic data: full name, spelling, direct number and, if possible, email
blathering idiot.” address.
• Use online discussion groups and forums to find people.
Don’t Wait for Callbacks

Don’t sit around waiting for decision makers to call you. Have an active,
aggressive entry campaign for the account. Consider what you know about the
company. Develop sales tools and a stepbystep sales approach. The following
items must be in your sales kit:
• Scripts for voicemail messages that repeat your value proposition as many
ways as possible to appeal to each specific prospect.
• Scripts for telephone conversations.
“Total personalization is
• Guidance for overcoming obstacles and countering the usual objections.
essential for penetrating
big accounts. Write your • Reference letters from your existing clients.
letter specifically for the • Stories of past successes that correspond to the prospect’s problem.
decision maker you
• Your company’s newsletters or reports.
want to meet.”
• Gift baskets and free samples.
• Postcards, and other light communications. Hint: funny ones may end up on
the prospect’s bulletin board.
You probably won’t get in the door on your first call. It may take eight or 10 calls
to establish personal contact.
Voice Mail Tips

Voice mail is a fact of business life these days. To deal with voice mail most
effectively:
“Avoid speaking to a • Write a script and use it so that your voicemail message is a provocative,
distracted decision enticing, informative sales tool.
maker. Find out right • Make your credentials clear immediately by citing a reference, your past
away if your timing is experience or your knowledge of the prospect.
104
bad. If so, suggest an • Immediately give the decision maker something of value. Include your value
alternative time.” proposition in the voice mail. Offer a good idea or hint that you have
information that the decision maker wants. Do this by adding a little data to
your voice mail.
• Prepare different voicemail scripts for various purposes.
• Eliminate all selfserving content and selfpromotion from your messages.
• Practice saying what’s in your script. Leave the voicemail message for
yourself, so that you can hear what the prospect will hear.
• Ask someone you trust to listen to your message and tell you how it sounds.
• The only thing that matters about voice mail is how it sounds to the
prospects.
“Selling to big
Email and Letters
companies is tough.
The techniques that apply to voice mail apply to written communication. Email
Really tough.”
and letters must be personal and focused on your value proposition. Emphasize
triggering events and business issues that matter to the prospect. Email is easy to
write, but that doesn’t mean you should take it lightly.
Dealing with Resistance

Do your homework so that you’ll be able to deal with common objections. If the
customer’s company is happy with its current vendor, use your knowledge of the
company to make it clear that you are offering something the current vendor does
not provide. Don’t accept a brush off. If the customer asks for more information,
make sure that the information you give is about the customer’s problem, not
about your product. Get gatekeepers on your side, by making it clear that you can
help their boss. Sell the gatekeeper, and the gatekeeper will become your ally.
“It’s not going to get any Remember that followup calls are just as important as your initial call.
easier for you in the
future.” Use these principles when you eventually meet with the prospect facetoface.
Don’t be nervous or discouraged. Your research has already taken you a long way.
About the Author

Jill Konrath teaches sales strategies, particularly selling to big companies, and consults with the trade media.
She has been featured in Entrepreneur, Sales & Marketing Management and The Wall Street Journal’s Startup
Journal, among others.
105
12/18/2016 Selling with Emotional Intelligence Summary | Mitch Anthony
Book
Selling with Emotional "Know thyself" is good advice for
Intelligence everyone, including sales
professionals. "Emotional
5 Skills for Building Stronger Client Relationships intelligence" is smart business.
Mitch Anthony
Kaplan Publishing, 2003
Buy the book
Recommendation
Ever since Harvard’s Daniel Goleman published Emotional Intelligence in the
mid1990s, experts in numerous fields have adopted his notion of E.Q.
emotional intelligence as opposed to I.Q. intellectual intelligence. Although
E.Q. is most commonly applied in the fields of management and leadership, its
strongest natural link may be to sales. Some sales professionals say buyers make
decisions based as much on their emotional response to the salesperson as on
their opinion of the product itself. Although he doesn’t offer as much direct sales
advice as the title might promise, author Mitch Anthony provides sales
professionals with E.Q. tools they can use to compete more successfully. The
content of the book is often fresh and original, although occasionally the author
seems to be plowing fields of thought that he has tilled before. One of the book’s
strongest sections deals with applying the fundamentals of emotional intelligence
to negotiations. getAbstract.com recommends this book to sales professionals
who are seeking new perspectives that can lead to higher commissions.

• How to define emotional intelligence
• How to increase your awareness of your own behavioral tendencies
• How to use emotional discipline in business and in life
Take-Aways
• Emotionally intelligent people understand other peoples’ characteristic
emotions and responses and their own.
• The five essential aspects of emotional intelligence are awareness, restraint,
resilience, othercenteredness and rapport building.
• You can’t change your instinctive reactions, but you can change your
behavior.
• You can’t always change your circumstances, but you can improve your
responses.
• The emotional content of your sales presentation may be more important
than the actual information you present.
• Top producers are goaloriented and do the homework necessary to achieve.
106
• Take responsibility for your emotions. Don’t put others in control by

blaming them.
• Fight pessimism and excessive emotional highs and lows.
• To fight stress, maintain your sense of humor.
• Look for and develop sources of "sustaining motivation" in your life.
Summary
A Fish Story
When a man on a train sees a fellow passenger eat an entire herring except for the
head, which the passenger pockets, he can’t restrain himself from asking, "Why
did you put the head of a fish in your pocket?"
“Doors open and close in
The passenger explains that fish is good for you, and that the healthiest part of the
our lives because of
fish is the brain. So, he saves fish heads for his children.
emotional intelligence
or its absence.” After thinking about this for a while, the first man offers to buy the fish head for a
dollar. He eats it and then turns to the man who sold it to him. "Hey, wait a
minute!" he says. "I could have bought a whole fish for less than that!"
"See," replies the other man. "You’re smarter already."
Closing sales of all kinds (not only of fish heads) is as much a matter of emotion as
of logical analysis. Cultivating emotional intelligence how you respond to various
situations based on your understanding of your emotional tendencies is crucial
to your success as a sales professional. Your ability to control your emotions will
affect your sales results.
“I am convinced that
Take the ARROW Test
nowhere are the dramas
Nowhere is the tie between emotions and business success as clear as it is in sales.
of emotional intelligence
Buyers often complain that sales professionals are "pushy" or "cold and
played out more vividly
than on the sales stage.” indifferent." When a prospect slams the door in your face, chances are that your
sales approach has not been emotionally intelligent. Develop your mastery of the
sales professional’s five key emotional intelligence skills (referred to by the initials
ARROW), which are:
1. "Awareness" Are you fully cognizant of the way you react to situations such
as rejection? Are you sensitive to the responses of others?
2. "Restraint" When you’re tired or upset, do you say the first thing that
comes into your mind? Or do you avoid obvious emotional responses and
find productive alternatives?
3. "Resilience" When you experience setbacks or difficulties, can you pick
yourself up off the floor and give it another go? Or do you get discouraged?
“One of the inexorable
truths of competition is 4. "Others (empathy)" Is your sales career all about you? In sales, it’s
that when clients have a important to move "from me to we." To succeed, you must demonstrate
choice, they choose the empathic caring for others. If you have conflicts with your clients, you
option with the least probably have not cultivated the ability to see things from their point of
amount of emotional view.
exhaustion and 5. "Working with others (building rapport)" Do you enjoy developing
annoyance.” mutually productive relationships? Are you a wallflower, or can you strike
up a conversation and make new friends?
To improve your sales ability, assess your E.Q. Testing yourself on your ARROW
skills the five elements of emotional intelligence can give you a realistic picture
of your baseline E.Q.
107
Your "Personality DNA"

The way you react to others and the way others instinctively react to you is
relatively fixed. Personality tendencies that you find annoying in others merely
reflect the way they view and react to the world. Letting their tendencies frustrate
you is unproductive. Instead, change the way you manifest your initial, instinctive
“Emotional intelligence
reaction.
in selling begins with the
recognition that one
Perhaps you tend to be analytical. Perhaps you’re impulsive and easily bored.
must meet emotional
Perhaps you’re gregarious, or on the contrary, perhaps you are shy in new groups.
agendas beyond the buy
Whatever your particular set of E.Q. attributes, when you develop awareness of
andsell transaction for
your tendencies, you can modify your personality quirks and take advantage of
a buyer to be satisfied
with the transaction.” your emotional strengths.
TopProducer E.Q.
Top producers tend to have four emotional characteristics:
1. "Competitive Drive" One manifestation of the competitive urge is

resourcefulness. Top producers will make the extra phone call to close the
sale. If they can’t reach their prospects during normal business hours, they’ll
try them early in the morning or late at night. They rejoice in winning, and
they work well under pressure.
2. "Achievementality" Top producers do their homework and prepare to be
successful. They want to earn more income, often because they see it as a
“Sandwiched between measure of their overall success. Not surprisingly, they tend to be goal
wanting the facts and
oriented. They set high standards, and they don’t shirk responsibility or
the rationale for buying
blame others for their setbacks.
your product are the
emotional agendas that 3. "Teachability" The most successful sales professionals have a continual
must be met with every desire to learn, to grow professionally and to reduce errors. They also enjoy
client.” teaching others how to do things better.
4. "Wit" Successful people have agile minds that adjust on the fly to difficult
situations or customers. They cultivate a sense of humor.
These attributes play a powerful role in the success of any salesperson. Even
though you may not be able to change your external circumstances, you can
probably improve in at least one of these four areas. Of course, before you can
change your weaknesses, you must be willing to acknowledge them. Improving
your emotional intelligence isn’t always easy, but the reward is great. When you
can bring all four of these elements to the table in sales situations, you will have
the "critical mass" of emotional fortification you need to generate sales.
“Keep your eyes and

ears open. Become an Avoid an "Amygdala Hijack"
observer of yourself When you snap without letting your reasoning power kick in first, you’ve suffered
first.” an "amygdala hijack." The amygdala is the part of the brain where impulsiveness
overrules reflective and analytical thought. Indulging the whims of your amygdala
can be costly indeed. To control your gut reactions, practice being a good "one
minute emotional manager." Essentially, this means learning to put on the brakes
when you sense that you could yield to impetuous urges.
Guard against that second wave of anger, as well. Often you can resist the first
flush of irritation, but as you continue to experience frustration, you feel the urge
to do something. In this state, because of builtup irritation, you may fly off the
handle. Perhaps you’ve had a tough day at work and you come home hoping for a
little peace. In this situation, tell your family you’re already at your wit’s end.
Learn to avoid irritation when you’re too tired, hungry or emotionally spent to
“Plenty of sales profes deal with it rationally.
sionals are terrific at
building rapport until Applying E.Q. to Selling
that rapport is
threatened.”
108
By understanding your reactions, you can learn to sell with greater emotional
intelligence. To keep your E.Q. at the high level you need for sales success, follow
these guidelines:
• Monitor the signals your body is sending you, so you sense when your
emotions are starting to call the shots.
• Take responsibility for your own emotions. Don’t make others, or their
behavior, responsible for how you feel or react.
• Let go of expectations that tend to result in disappointment or frustration.
“While we cannot stop • Understanding that "venting" and communicating a negative attitude or
the angry thoughts from emotion dashing off an angry email, for example often create situations
coming, we can keep that you no longer control. This is called the "viral spiral of emotion."
them from taking up • Before you blow your stack, consider the cost (including to your reputation).
permanent residence.”
• Manage your stress and find healthy outlets for it.
• Watch for mood swings. Don’t let your highs get too high or your lows too
low.
• Maintain your sense of humor, no matter what.
• Eschew pessimism.
• Monitor yourself by checking your attitude several times daily. Don’t let
other peoples’ negative attitudes and disappointing performance infect you.
• Look out for negative selftalk. If you catch yourself being overly critical,
"take your name off your enemies list."
“The first step toward • Think of defeat as a learning opportunity. You’ll do better next time.
avoiding stressedout • Look for sources of "sustaining motivation" in your life and your career.
reactions is predicting • Think about the emotional impact you want to have on others.
the environments that
chronically trigger • Decide in advance upon the emotional approach you will take when times
stress.” get tough. Prepare yourself for adversity.
• When your client says no, don’t crawl into a hole. Try to find out the reason.
• Be sensitive to body language and buying signals. Focus on your client’s
reactions as much as on your presentation.
What Are They Really Buying?

The emotional impact of your sales presentation is at least as important as your
rational selling proposition. The impact varies, depending on the personality of
the individual to whom you’re selling, so you must learn about each client’s core
personality tendencies. Address clients in the tone that appears to make them
most receptive.
“Make sure that your
tone and your body Of course, relationships alone won’t sell your product and using relationships in
language, as well as this way would be manipulative. Give your clients strong reasons to like you and
your words, to do business with you. At the same time, guard their true best interests. With
communicate.” each interaction, look for small ways to serve your clients, to demonstrate
courtesy and to add value to the relationship. They will notice your extra effort.
Emotionally Intelligent Negotiating

Everyone brings his or her own unique style into negotiations. As you learn to be
more empathetic, you will instinctively understand the motives of those on the
other side of the table. Many negotiators make the mistake of trying only to get
the best deal for their side; they fail to consider what the deal’s longterm impact
might be on their business relationships. Skilled professional negotiators are able
to work out solutions where others see only obstacles. Their secret is looking
beyond their own wants and needs to the goals of their negotiating partners.
“Resilience is the
earmark of...sales
professionals...Although
109
you can knock them Your opponents may resort to emotionally exploitative tactics but you can defuse
down, you cannot keep them. If they claim that your offer has insulted them, remain calm. Ask them what
them down.” sort of offer they expect. Listen carefully to the response. If they bluster and
appear angry, ask them why they feel that way. Don’t try to match them tactic for
tactic; instead, keep your eyes on the ultimate goal of a mutually acceptable
solution.
"Seven Habits of the Emotionally Competent"

People who are emotionally capable distinguish themselves seven ways:
1. They place a high level of importance on the emotional impact their words
and deeds have on others.
2. They are careful about tone, both theirs and others’.
“I am an optimist, if for 3. They anticipate and even rehearse their responses to emotionally charged
no other reason than a situations.
hopeful attitude keeps
4. They don’t dismiss any incidents or interactions as too small to be worthy of
the doors of opportunity
notice. They pay close attention to emotional details.
swinging and makes
every day feel like an 5. They admit their fears, frustrations and attitudes, and don’t try to make
adventure.” others responsible for them.
6. When negotiating, they never lose sight of how their tactics will affect the
overall relationship.
They practice emotional selfdiscipline, rather than saying the first thing that
comes into their minds.
About the Author

As president of the training and communications consulting firm Advisor Insights, Mitch Anthony has made
more than 2,500 presentations to companies in the financial services and insurance industries. He is the author
of Storyselling for Financial Advisors.
110
12/18/2016 The 7 Habits of Highly Effective People Summary | Stephen R. Covey
Book
The 7 Habits of Highly To be highly effective, just initiate,
Effective People focus, prioritize, connect, cooperate,
improve yourself and let others win.
Powerful Lessons in Personal Change Whew.
Stephen R. Covey
Free Press, 2004
First Edition: 1989
Buy the book
Recommendation
This book was a publishing phenomenon in the early 1990s, and it deserved to be.
Stephen R. Covey managed to repackage an ethical and moral tradition thousands
of years in development and make it meaningful to a late twentieth century,
secular audience. Most of what you find in this book you will find in Aristotle,
Cicero, Benedict, Tillotson and their heirs. Covey adds a few references to
psychology, a twentieth century science, and many to Viktor Frankl, a sage of the
Holocaust. Covey wraps the mix in a distinctively American cando program of
easylooking steps calling, mostly, for selfdiscipline. The result is a quite
worthwhile, useful manual for selfimprovement. getAbstract believes most
readers can learn something useful from this book, though some will find the style
too familiar and easygoing, and the prescriptions easier to agree with than to act
upon, much less adopt as habits.

• Seven approaches that effective people take to attain fulfillment
• How to build your character and shape your life more deliberately
Take-Aways
• Focus on developing character, not personality.
• You are what you habitually do, so adopt productive habits.
• Excellence is a habit, not an aptitude.
• You are free because you can determine how you respond to circumstances.
• Choose sound principles integrity, dignity, quality, service, patience,
perseverance, caring, courage and endeavor to live by them.
• Write a personal mission statement to clarify your principles and set your
goals.
• Think of what you want people to say about you at your funeral; try to
deserve it.
• Build trust in your relationships.
• Balance the attention you give to each of your roles. Allot your time to
attend fairly to each of your responsibilities and relationships.
111
• Understand that you have the ability to improve your habits and your life.
Summary
Seven Habits
The seven habits of highly effective people are:
1. They take initiative. “Be Proactive.”

2. They focus on goals. “Begin with the End in Mind.”
“This is the single most 3. They set priorities. “Put First Things First.”
important investment 4. They only win when others win. “Think Win/Win.”
we can ever make in life
investment in 5. They communicate. “Seek First to Understand, Then to Be Understood.”
ourselves, in the only 6. They cooperate. “Synergize.”
instrument we have with
7. They reflect on and repair their deficiencies. “Sharpen the Saw.”
which to deal with life
and to contribute.”
Much of the business success literature of recent decades focused on developing a
good personality. This emphasis is misplaced. Developing a sound character is
more important and more productive. Your personality can emerge naturally
when your character is rooted in and formed by positive principles. Forcing
yourself to display a personality that is inconsistent with your character is like
wearing a mask. It is deceptive, manipulative and ultimately destructive.
To develop a sound character, you need a sound paradigm, a solid new way of
seeing things. Before the theory of germs established a new paradigm, for
example, surgeons didn’t wash their hands. When patients died of infections, no
one understood why. Sterile operating rooms came about as the result of a new
paradigm, a new way of seeing how disease worked.
Today, many people have a deterministic paradigm. They believe that their
“Obviously building a genetic makeup determines how they will act, or that their parents’ failures
character of total permanently weakened their own chances and formed them irremediably, or that
integrity and living the their environment or experience have curtailed their freedom to change. In fact,
life of love and service determinism is a paradigm. To forge a strong character, abandon determinism
that creates such unity and accept a paradigm of freedom. This new paradigm allows you to see that you
isn't easy.” can change, that character is a habit, and that a habit is what you do consistently.
Act consistently in a new way and you will form and become a new, improved
character.
Certain basic principles and values make people more effective. They are fairness,
equity, integrity, honesty, human dignity and worth, excellence, a spirit of service,
patience, perseverance, nurturance, caring, courage, encouragement and the can
do attitude that recognizes boundless potential. The person whose character
grows from these classic principles is a leader who, having mastered him or her
self, can inspire and help others. Character is habit. As Aristotle said, we are what
we habitually do. To develop the habit of acting on these principles you must:
• Know — Understand what you want to do and why you want to do it.
• Develop skills — Become able to do it.
“In fact, until we take • Desire — You must want and will yourself to do it.
how we see ourselves
(and how we see others) The most important work is the inner work. When you master your interior self,
into account, we will be you will master what is outside of you. Many people mistakenly concentrate on
unable to understand
production, on making a measurable, visible difference in the world outside. They
how others see and feel
neglect production capability, the source of power that makes production
about themselves and
possible. They are like the fellow who runs several hours a day and boasts of the
their world.”
112
extra years he’ll live, but neglects to notice that he is spending all of his extra time
running. He may gain extra years but he will not be able to do anything more with
them, and the time he spends running might better be spent developing deeper
relationships with his spouse, family and friends.
Habit 1: “Be Proactive”

Highly effective people take the initiative. They are proactive. They do not impose
limits on themselves that prevent them from acting. They recognize that they have
the freedom to determine the kind of character they will have because they can
decide how they will act. They may not be able to control their circumstances, but
they can decide whether to use those circumstances or be abused by them. They
live by the “principles of personal vision.”
“Principles are Viktor Frankl was a prisoner in a Nazi concentration camp. His entire family,
guidelines for human except for one sister, was murdered in the camps. As horrific as his circumstances
conduct that are proven were, Frankl recognized that he was free, because he could decide how he would
to have enduring, think and act in the midst of the horror. Even when he was a starving prisoner, he
permanent value.” visualized himself lecturing in a classroom, telling students about the horror and
what he learned from it.
His mental discipline made him stronger than the camp guards. He inspired
fellow prisoners and even some of the guards themselves. Frankl was proactive.
He took the initiative and accepted responsibility for his fate. He recognized that
fate was his to decide. He did not have the power to walk away from the camp, but
he had the power to master it.
Begin to be proactive by speaking the language of initiative and responsibility:
• Not, I can’t do anything — But, let’s think about some possibilities.

• Not, that’s just me — But, I can change the way I am.
• Not, he drives me up the wall — But, I can choose how I’ll let him affect me.
“In choosing our
• Not, I can’t or I have to — But, I will decide and I will choose.
response to circum
stance, we powerfully
affect our circumstance.” Proactive people operate in the realm of the possible. They see what they can do,
and do it. By taking responsibility and acting, they expand the realm of the
possible. They get stronger as time passes. They become able to do more and
more. They begin by committing to change something interior, and may
eventually change the world around them.
Habit 2: “Begin with the End in Mind”

Think carefully about your goals. Many people spend a lifetime pursuing a goal
that proves meaningless, unsatisfying or destructive. You see them on the covers
of tabloid magazines, rich, famous, busted for drugs or watching their marriages
fall apart. Power, money and fame were the goals that they wanted and achieved,
but at what price? Effectiveness is not just a matter of reaching a goal but rather
of achieving the right goal. Imagine yourself sitting in the back of the room at your
funeral. Imagine what people could honestly say about you based on the way you
“The most effective way I are now. Do you like what you hear? Is that how you want to be remembered? If
know to begin with the not, change it. Take hold of your life. Implement “personal leadership.” Begin by
end in mind is to develop drafting a personal mission statement that outlines your goals and describes the
a personal mission kind of person you want to be. Think carefully about this mission statement.
statement or philosophy Examine yourself. See yourself as you really are. Are you selfcentered? A
or creed.” workaholic? Moneygrubbing? Decide what you need to change and what you
want to become. Write the statement. Make a commitment to yourself. Keep that
commitment.
Habit 3: “Put First Things First”
113
You have the power to change who you are, but that means changing how you act.
Never let your most important priorities fall victim to the least important. Many
people spend their time reacting to urgent circumstances and emergencies, and
never invest the necessary effort to develop the ability to prevent emergencies, to
exercise “personal management.” They confuse the important with the urgent.
The urgent is easy to see. The important is harder to discern. Emphasize planning,
“By centering our lives avoiding pitfalls, developing relationships, cultivating opportunities and getting
on timeless, unchanging adequate recreation. Don’t think about cramming a lot of business into your
principles, we create a schedule, but rather about making sure that you spend the necessary time on
fundamental paradigm important things. Think of your various roles as a spouse, a parent, a manager, a
of effective living.” community volunteer. Give each role an appropriate allotment of time on your
schedule. Do not rob Peter to pay Paul; make sure each role gets its due.
Habit 4: “Think Win/Win”

In marriage, business or other relationships, exercise “interpersonal leadership”
to make both parties winners. Two wins makes everyone better off; two losses
places everyone in a worse situation. A win/lose relationship creates a victor and
leaves someone injured. Highly effective people strive for win/win transactions,
which make it profitable for everyone to cooperate because all the parties are
better off in the end. Any other kind of transaction is destructive, because it
produces losers and, therefore, enemies and bad feelings, such as animosity,
defeat and hostility. Highly effective people become highly effective by
multiplying their allies, not their enemies. A good alliance is win/win.
“Effective management Habit 5: “Seek First to Understand, Then to Be Understood”

is putting first things
Communication is a twoway street. To develop win/win relationships, find out
first.”
what the other parties want, and what winning means to them. Don’t assume you
know. Listen. Always try to understand what the other people want and need
before you begin to outline your own objectives. Do not object, argue or oppose
what you hear. Listen carefully, and think about it. Try to put yourself in the other
party’s shoes.
Good lawyers make it a practice to write the strongest possible case they can from
their opponent’s point of view. Only when they understand the best possible
arguments for the opposition do they begin to draft the case from their client’s
point of view. This tactic is equally valuable in personal relationships or business
arrangements. Always understand what the other party needs and wants, and
why. Then, when you outline your own objectives, put them in terms that respond
directly to the other party’s goals. That is acting upon the “principles of
empathetic communication.”
“Think effectiveness with
people and efficiency
Habit 6: “Synergize”
with things.”
Cooperation multiplies the power of one. In fact, “creative cooperation” may yield
a force greater than the sum of the parts just as an arch can support a greater
weight than two pillars can hold. The arch multiples the power of both pillars. The
buzzword to describe this kind of relationship is “synergy,” which means bringing
together a whole that is greater than the sum of the parts.
Effective synergy depends on communication. Many people make synergy

impossible by reacting from scripts. They don’t listen, reflect and respond but,
instead, they hear and react reflexively. Their reactions may be defensive,
authoritarian or passive. They may oppose or they may go along — but they do not
actively cooperate. Cooperation and communication are the two legs of a
synergistic relationship. Listen, reflect, respond and actively cooperate.
Habit 7: “Sharpen the Saw”

“Real selfrespect comes “In an old yarn, a man is sawing a log. The work is going slowly and the man is
from dominion over exhausted. The more he saws, the less he cuts. A passerby watches for a while and
self.” suggests that the man should take a break to sharpen the saw. But the man says
he can’t stop to sharpen the saw because he is too busy sawing! A dull saw makes
114
the work tiresome, tedious and unproductive. Highly effective people take the
time they need to sharpen their tools, which are, in fact, their bodies, souls, mind
and hearts. It’s time for “selfrenewal.”
Effective people take care of their bodies with a program of exercise that combines
endurance, flexibility and strength. It’s easy to plan such a program, and you don’t
have to join a gym to implement it. Effective people care for their souls with
prayer and meditation, if they are inclined to a religiouslygrounded spirituality,
or perhaps by reading great literature or listening to great music. Never neglect
this spiritual dimension; it provides the energy for the rest of your life.
Mental repair may mean changing your habits, such as the habit of watching
“Most people do not television. Television watching encourages passive absorption of values, attitudes
listen with the intent to and dispositions that dull the mind. Read, work puzzles, do math or engage in
understand; they listen some challenging activity to keep your mind alert, active and engaged.
with the intent to reply.”
The heart refers to emotions, which depend greatly on others. Work to develop
your heart, your emotional connections and your engagement with other people.
Communicate, listen and be undemanding. In everything you do, try to make
others better off and put them first. By doing so, you’ll transform yourself into a
highly effective person.
About the Author

Stephen R. Covey is vicechairman of Franklin Covey Co., and teaches PrincipleCentered Living and
PrincipleCentered Leadership. Covey is also the founder and former CEO of the Covey Leadership Center. He is
the author of several books. The 7 Habits of Highly Effective People has been a bestseller for many years.
115
12/18/2016 Stephen Covey 8th Habit Instant Download
Book
The 8th Habit The 7 Habits generate the 8th Habit:
From Effectiveness to Greatness Find your voice; help others find
theirs. Bring mind, body, heart and
Stephen R. Covey
soul to work.
Free Press, 2004
Buy the book
Recommendation
A cynic toward sequels would note that Steven Covey took only a little more than
300 pages to explain his first seven habits, but 409 pages and an accompanying
CD to expound on the eighth. Cynicism aside, however, this book this 8th Habit
is worth every page. Give Covey credit. He could rest on his laurels and just write
bland, nonthreatening "how to lead" books and they would all be bestsellers.
Covey eschews mediocrity, however, and tells it straight. Most employees
experience considerable emotional pain working in their organizations, he says,
because they are treated as objects, not full human beings. Covey adds his prestige
to the notion that the knowledge worker is a new model for change in the
unspoken, unwritten contract between employer and worker. He bases this fresh
paradigm on respect for the complete person mind, body, heart and soul not
just the part that works from nine to five. Covey’s voice is powerful and unique.
He is committed to helping others find their unique voices as well. getAbstract
recommends this highly for anyone in the workplace.

• How to transform your life and your company by using the 8th Habit
• How it incorporates and expands upon the 7 Habits
• How the Knowledge Worker Era is replacing the Industrial Age
• How to develop your unique human voice and help others find theirs
• How to make empowerment work
Take-Aways
• The 8th Habit has two aspects: one, finding your own unique voice and two,
helping others find theirs.
• The 8th Habit stems from the first 7 habits.
• Most management operates under a tragically flawed Industrial Age
paradigm.
• Leave that framework behind, and welcome the paradigm of the Knowledge
Worker.
116
• Everyone has a choice: you can pursue mediocrity or excellence. The good
news is you can always change your mind, leave mediocrity behind and
pursue excellence again.
• Your power of choice rests in four essential elements: mind, body, heart,
soul.
• Extraordinarily accomplished people have four traits: vision, discipline,
passion and moral conscience.
• To find your unique human voice, help someone else find theirs.
• The ultimate purpose of mastering the 8 habits is to serve others.
• It’s not enough to have lofty ideals. The biggest failing of the average
organization is usually its inability to execute.
Summary
Modern Bloodletting
The problem with management is that it still works under the flawed Industrial
Age paradigm.
“The 8th Habit...is about Consider that physicians in the Middle Age practiced bloodletting. As barbaric as
seeing and harnessing that may seem today, using leeches to draw blood from a sick person simply
the power of a third followed from the era's paradigm that if you were ill, bad material was in your
dimension to the 7 blood, so the blood must come out. After the advent of germ theory the paradigm
Habits that meets the shifted, saving millions of lives.
central challenge of the
new Knowledge Worker A paradigm is powerful. The old Industrial Age paradigm held that people were an
Age. This 8th Habit is to input, akin to raw materials such as steel and energy. People, therefore, were
find your voice and help treated as things. They were not managed as whole individuals consisting of heart,
others find theirs.” mind, body and spirit, but rather as objects to be controlled and rarely trusted.
While circumstances certainly have changed since the advent of the Industrial
Age, the basic paradigm continues. Workers are objects, to be carefully
scrutinized and managed in order to get them to perform effectively.
This approach is increasingly dysfunctional in the Information or Knowledge

Worker Age. Under the old approach, employees experience a great deal of pain
and frustration at every company, no matter how successful. Fortunately, today
the workplace paradigm is shifting, as expressed by the 8th Habit.
The 8th Habit is not just 7 Habits plus one that got left behind. Instead, it calls for
“It is the voice of the using a "third dimension" of The 7 Habits of Highly Effective People. The 8th
human spirit full of Habit means "finding your voice and helping others find theirs." And, in this
hope and intelligence, context, "voice" is the unique personal significance each human offers, and can
resilient by nature, bring to bear at work.
boundless in its potential
to serve the common Making a Difference
good. This voice also A full colonel with more than 30 years of service commanded a military base.
encompasses the soul of Instead of retiring, he decided to stay and push through a landmark cultural
organizations that will
change inside his organization. He knew it would be a major battle. When asked
survive, thrive and have
why he didn't simply retire and avoid the mess altogether, the colonel explained
a profound impact on
that his father's last whispered words on his deathbed were, "Son, don't do life like
the future of the world.”
I did. I didn't do right by you or your mother and never really made a difference."
The colonel explained that he was determined to implement cultural changes that
would have a positive impact on his command long after he was gone. Everyone
has the choice the colonel made: live with mediocrity or strive for greatness. The
good news is that if you have chosen mediocrity, it's never too late to turn back.
You can choose greatness instead.
117
Discovering Your Voice

Finding your unique voice means fulfilling your innate potential. The greatest gift
you received at birth was the ability to decide whether to develop your fullest
“What happens when
capacities. You have a choice in the space or time between every action and every
you manage people like
reaction. During that moment, reflect on what has happened and determine your
things? They stop
response. The ability to understand your free power of choice opens the door to
believing that leadership
four vital intelligences or capabilities:
can become a choice.”
1. Mind: IQ is mental intelligence Many people stop here when
evaluating intelligence, but it is too restrictive.
2. Body: PQ is physical intelligence This form of intelligence is often
discounted, because it takes place without your conscious awareness. You do
not have to think to breathe or to make your heart beat. Yet this intelligence
responds continuously to the environment to maintain health, ward off
infection and so forth.
3. Heart: EQ is emotional intelligence You must be an aware, sensitive
and empathetic person to communicate with others on a genuine level. A
“The fundamental person with a strong EQ knows what to say and when to say it, how to feel
reality is, human beings and how to express those feelings. Substantial evidence indicates that over
are not things needing to the long run EQ is a stronger determinant of success than IQ.
be motivated and
controlled; they are four 4. Spirit or soul: SQ is spiritual intelligence This is the most central
dimensional body, intelligence because it directs the activities of the other three. Our drive for
mind, heart and spirit.” meaning and purpose leads us to develop our SQ.
Highest Expressions
To find your voice, you must be in touch with the four elements of a whole person:
mind, body, heart and spirit. The consistent pattern in the lives of great achievers
is that, through struggle and effort, they elevated the four intelligences to their
highest manifestations: "vision, discipline, passion and conscience." They used
four powerful combinations:
1. Mind = Vision When the mind is fully developed you gain vision, the
ability to discern the highest potential in people, institutions, causes and
“The new Knowledge enterprises. People who do not exercise the mind's ability to create, or who
Worker Age is based on discourage it in others, suffer from a failure of vision. They are unable to see
a new paradigm, one the wonderful possibilities within circumstances of great need. Without
entirely different than
vision, they slip into victimization.
the thing paradigm of
the Industrial Age. Let’s 2. Body = Discipline You need discipline to transform vision into reality.
call it the WholePerson Discipline is the child born from the marriage of vision and commitment.
Paradigm.” You must have both.
3. Heart = Passion Those who develop a wise heart will feel the passionate
fire of conviction, the flame that sustains the discipline needed to achieve
the vision. Passion flows from finding and using your unique voice to
accomplish great things.
4. Spirit = Conscience Developing your mental identity will lead you
toward knowing the right fork in the road, toward an inward moral compass
that will guide you.
Leadership Defined
“Enduring trust in a re Ultimately, leadership is the ability to help people understand their own true
lationship cannot be worth and potential, so they see it in themselves and live accordingly. The
faked, and it is rarely Industrial Age view of work failed to nurture trust, placed the boss at the center of
produced by a dramatic, all activity, took power away from people and misaligned the interests of the
onetime effort.” individual and the organization. The alternative path is practicing the 8th Habit,
and the 7 Habits that preceded it. Begin with developing the four intelligences,
finding your voice and expressing it.
118
To lead this journey, implement the 8th Habit in your interactions. Buckminster
Fuller requested the epitaph, "Just A TrimTab." A trimtab on a boat or plane is
the small rudder that ultimately turns the whole machine. Successful
organizations have many unheralded trimtabbers who influence it by setting
good examples. These individuals believe they really can make a difference.
“The compass is an
To be a leader, prove yourself trustworthy. Most leadership failures probably can
excellent physical
be traced back to failures of character. Every leader must exemplify core values
metaphor for principles,
such as keeping promises and demonstrating honesty and integrity.
because it always points
north. The key to
maintaining high moral Learning to Empower
authority is to Why should you empower others to find their voices? Well, consider the
continually follow ’true alternatives. You could try to lead them by controlling them. That rarely proves
north’ principles.” satisfactory. Or you could abdicate responsibility, and let them do whatever they
want. That hardly seems wise, either.
The solution is to give others "directed autonomy." Work with them to establish
their objectives and then give them the autonomy to achieve those goals. A win
win agreement is neither a legal contract nor a job description. It is a
psychological and social contract written into people's hearts and minds. Such an
agreement endows your colleagues with a shared commitment toward the
organization's highest priorities. Winwin empowerment is especially valuable
during evaluations. In a hightrust culture, people are far more likely to appraise
themselves effectively, particularly if you provide them with good 360degree
“Spiritual intelligence feedback. Selfevaluation is usually the toughest.
also helps us discern
true principles that are The Sweet Spot
part of our conscience,
So now that you understand the 8th Habit, how do you practice it? Here are some
which are symbolized by
ideas:
the compass.”
• "Modeling" Prove yourself trustworthy through your actions, rather than
imposing expectations on others. Listen to others and practice behaviors that
ultimately will give you moral authority. • "Pathfinding" Create a sense of
direction and order for your organization. • "Aligning" Help your organization
be congruent with the spirit of trust and empowerment. Proper alignment results
in institutional moral authority. • "Empowering" Accept the four elements of a
person's nature heart, mind, body, spirit and embrace them. Have faith in
people's ability to choose wisely for themselves. Empowerment produces cultural
moral authority.
“Most people think of When you reach the stages of alignment and empowerment, you're talking about
leadership as a position execution. In most companies, a great gap yawns between goals and execution.
and therefore don’t see
themselves as leaders.” As Peter Drucker said, "So much of what we call management consists of making
it difficult for people to work."
Bridging with Empowerment

You must bridge six chasms to make empowerment more than just an empty
word:
1. The "clarity" gap The old Industrial Age approach was to announce a
program to the workforce and expect them to understand it. Mission
statements became mere PR initiatives; workers would wait to see what
really happened. In the Knowledge Worker Age, new initiatives need
“Execution is the great
identification, involvement and buyin from workers.
unaddressed issue in
most organizations 2. The "commitment" gap Rather than "sell" new ideas to the workforce,
today.” the 8th Habit respects the whole person. The organization based in the
Knowledge Worker Age takes into account the welfare of each person's body,
mind, heart and spirit.
119
3. The "translation" gap Lofty goals must be translated into realworld

activities. For the Knowledge Worker, this is done not by job descriptions,
but by aligning goals and incentives to get the desired results.
4. The "enabling" gap In Industrial Age thought, people were an expense
and equipment was an investment. Today's better idea is to establish a
scoreboard that matches desired results with capabilities. This ensures that
“No matter how long workers can see how the firm's structures are aligned to enable them to
we’ve walked life’s accomplish essential objectives.
pathway to mediocrity,
we can always choose to 5. The "synergy" gap To have synergy, managers must understand the
switch paths. Always. Third Alternative. When two ideas conflict, managers can, through empathic
It’s never too late. We listening and creative thinking, arrive at a third position that is agreeable to
can find our voice.” both parties. This is the Third Alternative, an 8th Habit form of
communication that harmonizes various interests.
6. The "accountability" gap The Industrial Age process was simple: carrot
and stick. The new way involves mutual accountability and an open
comparison of progress made toward the achievement of a goal. The
scoreboard continually shows the score.
Serving Others
The ultimate path to harnessing all 8 Habits is to serve others. The real reason
organizations are established is to serve human needs. The notion of service above
self lends you the moral authority to be a great leader. The question isn't, "What's
"Consider the words of
Abraham Lincoln: ’The in it for me?" It is, "What's in me that I can give others?"
dogmas of the quiet past
As you begin the 8th Habit process of finding your own voice, know that your
are inadequate to the
journey must end with helping others find theirs. Each person is precious, and
stormy present’.
there is truly no limit to what an organization can accomplish when leadership
becomes a choice rather than a position. Choosing to serve becomes the most
enlightened habit of all.
About the Author

Stephen R. Covey is cofounder and vice chairman of FranklinCovey Co., and founder and former CEO of the
Covey Leadership Center. His book, The 7 Habits of Highly Effective People, sold more than 15 million copies
worldwide. He is the author of several other books and a teacher of "PrincipleCentered Living" and "Principle
Centered Leadership."
120
The 25 Sales Habits of Highly Fix up your sales skills by cultivating
Successful Salespeople only 25 habits. It’s only a few little
things, but can you change your
2nd Edition habits?
Stephan Schiffman
Adams Media, 1994
Buy the book
Recommendation
Noted sales trainer and the head genius of cold calling Stephan Schiffman
succinctly describes 25 effective sales techniques. Each tip gets a short chapter
with a nugget of advice, an example or two and a pat on the back to send you out
the door charged up and ready to go. It doesn’t matter if you’ve heard some of
these common sense ideas before because Schiffman’s compilation is so ontarget,
lively and encouraging. This little volume reminds you of leading sales techniques
or habits, as Schiffman calls them that will build your customer base and
increase your sales. If you’re in the business of one on one product or service
sales, this will boost your communications, planning, knowledge, rainmaking,
visibility and confidence. Schiffman tells you to ask people what they do and help
them do it better by selling into their priorities. Seems clear enough to
getAbstract.com, given that the author doesn’t only write he also sells.

• 25 tips on increasing your selling skills
Take-Aways
• Old selling tricks don’t work anymore; customers want value, information
and trust
• Focus on helping your customers do what they do better and solving
problems.
• Ask important, real questions about the prospects’ business in the past, now
and in the future, so you can suggest solutions to their problems and meet
their needs.
• Keep each prospect informed about where you are in the sales cycle as you
move from the initial contact to close.
• Find the most suitable customers by creating a profile of your past most
satisfied customers; focus most of your attention on them.
• When new prospects call for information, don’t rush to close a sale; focus on
building a trusting relationship first for longterm success.
• Think of yourself as a consultant.
• Take notes when you meet with a customer and follow up the next day.
121
12/18/2016 The 25 Sales Habits of Highly Successful Salespeople Summary | Stephan Schiffman
• Learn what your customer wants and needs; then create a customized
written plan.
• Always be ready to ask for the next appointment and for referrals. Talk with
pride about what you are doing.
Summary
Sales: Getting to be a Habit

To succeed in today’s competitive selling environment, incorporate 25 good habits
into your sales routine. Valueconscious consumers are more aware of what they
“First and most are getting from a salesperson than ever. Don’t use old selling tricks. Rather,
important, you must emphasize helping customers do their work better and resolve their problems.
remember that your Build enduring relationships based on trust, not just the image of trust. Be truly
prospects are more caring, since customers will see through fake concern. Make real promises you can
valueconscious and in deliver. These sales habits affect key areas: using communication skills, planning
formationconscious and strategizing thoughtfully, sharing knowledge, seeking leads, having
than ever.” enthusiasm, being honest, following up and building visibility. The 25 habits, in
brief, are:
Being a Great Communicator

Each customer contact hinges on making a real connection. Reach out with these
tips:
#1: Use your communication skills to convey a message that it makes good
business sense to trust you, because you are honest and trustworthy. Don’t use
“Don’t focus so much on tricks like claiming the person just won a raffle. Successful salespeople inspire
’needs.’ The key to selling trust, the hallmark of a good leader one who has vision, deserves respect, is
in today’s fastpaced accountable, has a clear sense of direction and has confidence. Be "the real thing"
environment is to ask and remember that the details matter.
people what they do,
how they do it, when #2: Ask important and real questions. A little small talk to establish rapport is
and where they do it, fine, but get down to business, so you don’t waste your prospect’s time. Use a
why they do it that way, single question to make the transition from small talk to business, such as "How
and how you can help did you get your job?" and then explain why you are meeting. Plan to ask about
them do it better.” the clients’ responsibilities, so you can help them improve, whether that involves
increasing sales volume or performing other tasks better.
#3: Guide the conversation in the direction you want, and inform the prospect
where you are going. Take the lead in stating where you are in the sales cycle, so
he or she feels more comfortable about the process from initial contact to closing
the sale. When you arrive, explain that first you will inform the prospect about
your company; then note that you are ready to ask questions to get the
information to move the sales cycle ahead, and so on.
“Today’s successful #4: Engage your prospects by responding clearly to their statements about their
salesperson is willing to requirements and what you sense are their unstated requirements. Create a "core
think ahead. That means of understanding" or a framework you can use to achieve solutions to their
consistently looking for current problems. Adapt these responses, since every customer is different and
the next step in the sales will react differently to your presentation. Build rapport by discussing the
process. That means surroundings or some interest which you apparently share with your prospect (i.e.
prospecting for
does he have skiing pictures or golf balls on his desk?).
tomorrow and
maintaining a prospect
base, even if you’re given Be Strategic and Plan What You Do
an existing account Careful forethought can help you take deliberate, productive action.
base.”
122
#5: Identify the most suitable customers for your product or service and tailor
your approach. Look for prospects who match your profile of a good customer for
your product. Don’t focus on getting "virgin" prospects for your product line.
Rather, determine your niche and the customers most likely to buy from you
(which can include customers of competitors) and target them. When you contact
these selected people, be as tactful as an educator or a facilitator. Win your
“You want to develop an prospects with information, not with high pressure tactics.
earned reputation for
following through on #6: Don’t be pushy with the leads that "fall into your lap," such as when someone
everything and I mean calls for information. You may be tempted to close the sale right away, but don’t
every syllable that leap too quickly. That’s a turnoff. Focus on developing a relationship first. Share
comes out of your some small talk to build rapport and get a sense of the person. Then, ask
mouth.” questions to learn what the person wants and why he or she contacted you.
Finally, ask to set up an appointment. Don’t try to close a sale on the phone, even
if the person seems to want to. Your goal is establishing a personal relationship
first. You are likely to sell even more and to increase the potential of future sales.
#7: Make your product or service fit your prospects’ needs. Find ways to be
adaptable and flexible. For example, a paper clip can have many uses besides just
holding paper together. Consider how your product might fulfill a new purpose.
Look at different ways to make your product presentation or find new groups of
people to approach.
“Relationships are built
on trust, and trust is #8: Present yourself as a consultant and see yourself as one, too. You are doing
built on evidence of all more than selling a product. You are a "professional problem solver." For
kinds.” instance, think of car sales as solving someone’s transportation problems. When
you sell to a business, you are solving their problems about becoming more
profitable.
Making the Most of Your Sales Call

When you meet with prospects, make your presentation strong and effective.
#9: Set up your next appointment on your first visit. Don’t wait for the prospect to
ask you back. Since you initiated the contact and have shown that you are there to
“Base everything you help, it is logical to ask to come again to show how you would implement your
ask on a simple proposed solution. Estimate the time you need to prepare a quote and when you
principle: never waste can return; use that to set your next meeting. If you have to reschedule, do so. But
the prospect’s time.” get the followup appointment set right away.
#10: Take notes writing them has value and so does owning them to guide you
after your meeting. Taking notes will help you: 1) listen and pay attention to
important points; 2) show that you are in a position of control and authority; 3)
analyze the information from your meeting; 4) encourage the prospect to give you
more information; 5) send a positive signal to the prospect about your interest
and concern.
#11: Create a customized, written plan for each new prospect. Use the material
“Tell the prospect where you obtain in your meetings to derive your plan. As you listen, note any problems
you are at any given and ways to adapt your product or service to that customer. Identify solutions to
point in the sales cycle.” tailor your plan.
#12: Ask for referrals. One ideal time to do this is when you send a letter to thank
your client for his or her business. Add a note that your business depends on
referrals and invite the customer to list the names and phone numbers of a few
people in the industry who might benefit from talking to you. Note that you don’t
need to use the customer’s name. Or, more directly, ask for referrals in person and
see if the contact will call them for you.
“When the person starts Have the Right Attitude for Success
to talk about himself, Your personal demeanor affects your sales. Work on these habits:
’lean in’ to the conversa
123
tion. People who talk #13: Show your enthusiasm. Don’t go overboard trying to embrace clients or
about themselves are throw around insincere compliments. Just adopt a friendly, warm approach. Use
more relaxed than good eye contact, a strong handshake, and calm, confident movements and
people who don’t.” gestures.
#14: Combine humility with giving yourself credit. Show that you feel proud and
confident about your work, but avoid seeming arrogant. Demonstrate "success,
confidence and flexibility," which are professional hallmarks. Assert your ability
to succeed, perhaps by describing how you have helped someone else do what the
prospect hopes to achieve.
#15: Be honest in whatever you say. It’s easier to remember what you’ve said
when you speak only the truth and it shows you are trustworthy. Sales depend
“Show care by really on relationships; relationships depend on trust. It’s fine to occasionally exaggerate
caring. When the a compliment, such as telling a person he has a greatlooking office, when it’s only
prospect outlines a ordinary. But don’t misrepresent your ability to solve a business problem; that’s at
problem, show the same
the heart of your professional relationship.
concern you would if it
were yours.” #16: Use selfmotivators. Be specific about your goals and the roles you value.
Find sources of positive reinforcement, such as another salesperson with whom
you can share support, advice and helpful critiques. Leave yourself affirmative
notes, such as "I can do it."
Stay on Top of Your Industry

It’s critical to stay informed and to use the early morning productively. Here’s
how.
“Most successful #17: Start early, so you can reach important decisionmakers. Many come in very
salespeople develop a early and may even answer their own phones when you call, since the secretaries
sense of who the likely and receptionist haven’t arrived yet. Arriving early lets you do your paperwork
customer is and then before the peak contact times for calling and meeting most prospects. And,
put themselves in front commuting is easier if you’re early.
of as many of those
types of people as #18: Read the publications in your industry and in your client’s industries, to
possible.” stay abreast of changes and trends, so you can adapt how you sell. The "who’s
who" and "on the move" sections are a good source of leads. To control costs, try
the library.
Dare to be Out There

Maintain a high community profile and followup with the people you meet.
#19: Support your prospect meetings by calling or writing to follow up the next
day. Create a tickler system or write in these calls into your daily schedule. This
“Look at each lead as a reminds your prospects of your presence and shows your commitment to
sales relationship and addressing their problems.
remember that relation
ships take time to #20: Give speeches to community groups, including businesses and civic
develop.” organizations. Develop your speaking skills and learn to share your knowledge.
Expand your contacts beyond your own industry to a wide variety of groups. Your
speeches reinforce your sales message, and 10% of your audience will ask you for
information about your product.
#21: When appropriate, pass on an opportunity to others. If you help others, they
will help you in return. View other salespeople as teammates and colleagues,
rather than competitors.
#22: If something goes wrong with a sales presentation or an expected sale ends
“Ask yourself, does what with a "no," take responsibility for that. Don’t be shocked that the prospect
you sell work in only one doesn’t want to buy. Rather suggest that the problem must be in your
way? Or can you adjust presentation or in something your company is doing wrong. Your prospect may
it? Can you make it then describe any remaining obstacles and this can turn into a sale.
serve some new purpose
124
or function? The key lies #23: Be honest about the firm where you work. If you don’t feel there is a fit or the
in opening your own people don’t meet your standards for ethics, quality or customer support, move
mind to new possibili on.
ties, then following
through.” #24: Spread the word to everyone you meet about your company and your
product line. Talk with pride, though don’t give everyone a sales pitch. Quick
introductions can become leads.
#25: Maintain your sense of humor. Don’t take yourself too seriously. Detach
yourself from the day to day routine and laugh about what you do. It’s refreshing
and good for the soul.
About the Author

Stephan Schiffman has trained more than 250,000 sales people. He is president of DEI Management Group
and the author of Cold Calling Techniques (That Really Work!), The 25 Most Common Sales Mistakes and
How to Avoid Them, and a number of other books on sales.
125
12/18/2016 The 100Year Life Summary | Lynda Gratton and Andrew Scott
Book
The 100-Year Life
Living and Working in an Age of Longevity A longer life can be a blessing if you
know how to prepare for your future.
Lynda Gratton and Andrew Scott
Bloomsbury, 2016
Buy the book
Recommendation
Celebrating a 100th birthday used to be a rare occurrence. But as of 2016, half the
children born in the West have a life expectancy of 105 years. These extra years
will likely be healthy, as morbidity rates are predicted to decrease in many parts of
the world. Yet, the gift of a long life brings unexpected complications. In this well
researched, comprehensive if academic overview, London Business School
professors Lynda Gratton and Andrew Scott address some of these issues,
including supporting yourself during an extended retirement, maintaining
beneficial relationships, staying healthy, and periodically updating your skills and
knowledge. While endofchapter summaries or bullet points might have been
helpful, getAbstract finds that this indepth analysis will help everyone hoping to
spend an extra decade or two on Earth and anyone seeking to hire them, invest in
them or sell to them.

• How increased longevity will change how you plan your life
• Why the usual “threestage life plan” of school, work and retirement is
becoming obsolete
• How to rethink your relationships, career, education and finances so you
can enjoy a long life
Take-Aways
• As of 2016, children born in the West have a 50% chance of living to age
105.
• The “compression of morbidity” means people stay healthier later into their
life spans.
• To create the necessary options for longer lives, people must replace the
model of a “threestage” life – education, work and retirement – with a
“multistage” life.
• New life stages will emerge, including “the Explorer, the Independent
Producer and the Portfolio.”
• Making a multistage life work will require flexibility and a changed use of
time.
126
• Careers using “uniquely human skills” are less vulnerable to technological

substitution.
• Foresighted companies will redesign policies to promote increased
employee longevity.
• A rich, fulfilling life requires intangible assets like relationships, happiness
and health.
• These intangible advantages can be “productive assets, vitality assets” or
“transformational assets.”
• Longrange financial planning requires both “efficacy” – belief in your
assessment abilities – and “agency” – the selfcontrol to follow a savings
plan.
Summary
Live Long and Prosper

Children born in the US in 2016 can anticipate reaching their 100th birthdays.
The last two centuries have seen an increase in life expectancy of two years per
decade. Unforeseen or unfortunate circumstances aside, you will live longer than
“Millions of people can your parents and grandparents, and your children will live longer than you. For
look forward to a long
some, a long life is a burden. Others see it as a gift of endless possibility. In the
life, and this will create
future, people will continue to work into their eighth and ninth decades. The job
pressure on how they
market will change and evolve, requiring new skills and knowledge. While
live and how society and
finances will play an obviously crucial role, nonfinancial assets such as
businesses operate.”
relationships, health and happiness are equally important. People will move away
from the traditional “threestage” life of education, career and retirement toward
a life of multiple stages. In such a “multistage” life, people may have several
careers, undergo various transitions, and take breaks to recharge or learn new
skills. These life transitions evoke flexibility, discovery, new perspectives, wider
networks and new relationships.
“Recreation will be more important than recreation,” as people invest in learning

and skill development throughout their lives. A longer life journey will come with
more forks in the road: times to choose among various options and take different
“The value of finding an directions. Rather than feeling elderly for a longer time, those enjoying a healthier
optimal match – either 100year life should extend their youthful mindset, explore new options
over lifestyle, career or throughout their lives, stay flexible in their thinking and interact with people of all
marriage – is greater ages.
with a long life and, of
course, the costs of a bad Clearly, having a working partner eases the financial burden of a longer life, but
match or a wrong early making relationships work over decades takes commitment, mutual trust and
commitment are also planning. Both genders will need to modify their attitudes and behaviors. Partners
greater.” must synchronize their transitions and stages. Different types of partnerships and
family units will continue to gain popularity, including cohabitation and single
parenting. Greater longevity will compel people to forge new paths and develop
new ways of living.
Aging Gracefully
Beginning in the 1920s, child and infant mortality rates fell as science tackled the
main infectious diseases, namely smallpox, tuberculosis and typhoid. The medical
community turned its attention to afflictions of middle age, such as cardiovascular
disease and cancer. Early diagnosis, new treatments, public education and
“There are real opportu government health care lessened the effects of these chronic issues. The next
nities to move…to a way significant improvement will come from tackling diseases found in the elderly.
of living that is more
flexible and more
responsive.”
127
Many people fear of living longer with Alzheimer’s disease or dementia, but
research shows that most people can anticipate being healthier longer into their
life spans. The “compression of morbidity” – the “healthrelated quality of life
before death” – helps maintain good health. Already people are beginning to
experience some diseases of aging, such as diabetes and arthritis, later in life.
Today’s elderly people enjoy a higher quality of continued participation in the
“activities of daily living” or ADL, which include such selfcare as bathing,
dressing and eating. Healthier aging does depend on location. In some countries,
“Identity will be based morbidity rates have increased or remained the same.
more on what you do
than on where you Paying the Bills
started, and the more The longer you live, the more money you’ll need, either by boosting your savings
roles you take, the less
or working longer. This presents substantial challenges. The usual threestage life
useful any one role will
of education, work and retirement worked for “Jack,” who was born in 1945 and
be in determining your
died at age 70. Jack’s state and company pensions, supplemented by his 4.3%
identity.”
annual savings rate, paid for his short retirement. “Jimmy,” born in 1971, faces a
life expectancy of 85. He has no pension, and his necessary projected savings rate
is an unrealistic 17.2% per year. For “Jane,” born in 1998 with a life expectancy of
100, the necessary annual savings rate jumps to 31%, even if she works into her
80s. Viewing greater longevity through the lens of the threestage life feels
overwhelming, unrealistic and exhausting. An elongated work stage is grueling
and depletes your nonfinancial assets, including health and relationships.
Longevity is more appealing for a life of multiple stages.
Technology’s Effects
“Periods of work become
Tech advances render some jobs obsolete while creating new ones. Since 1979, the
more extensive, savings
labor market has “hollowed out,” meaning that the number of high and lowskill
more central and, across
the passage of time, level jobs have increased, but the number of middlerange positions has dwindled.
major transformations Technology replaced many mediumskill jobs and carved out more roles for
occur in industries and skilled workers. The hollowing out of the middle will increase as computers take
jobs.” on more routine tasks, like driving or diagnosing medical conditions. However,
technological progress and productivity will raise the overall standard of living,
boosting consumerism and generating new industries. The future will feature
entirely new sectors and jobs.
Jobs that require “uniquely human skills” are less vulnerable to technological
replacement. David Autor’s article “Why Are There Still so Many Jobs?” identifies
two sets of uniquely human traits. The first is complex problem solving built on
experience and inductive reasoning. The second refers to roles based on
interpersonal interactions. People born at the turn of the century should choose
career paths with an “absolute advantage” – as in a job humans will always
“A good life would be perform better than robots – or a “comparative advantage” – a job in which
one with a supportive people and machines work together.
family, great friends,
strong skills and
knowledge, and good “Vitality Assets”
physical and mental Family, friends, health and learning are the intangible but necessary ingredients
health.” of a rich, fulfilling life. These intangibles strengthen your tangible assets. For
example, learning and acquiring skills boosts your earning potential. Intangible
advantages can be “productive assets, vitality assets” or “transformational assets.”
Productive assets like education and skill development build capabilities and
career growth. Periods of learning may take place throughout a 100year lifetime
due either to the obsolescence of existing skills or the desire for new knowledge.
Developing your “professional social capital” through collaborative relationships
boosts your longterm creativity and productivity. Building your personal brand –
that is, a good reputation – grows increasingly valuable as you fulfill your
responsibilities, seek opportunities or enter new fields.
“The great advantage of Vitality assets include your mental and physical wellbeing, which you should
increasing life
proactively maintain and improve. Healthy eating habits, regular exercise, stress
expectancy is it is
management and nurturing relationships are crucial for a long, happy life. The
happening slowly and is
128
predictable from afar. outdated threestage life model creates many imbalances for people such as Jack
We need to seize this who focus on work and career development for long periods of time and put their
advantage and make vitality assets on the back burner. For a more workable arrangement, look toward
sure we prepare appro the multistage life with a longer education stage and a fragmented work stage as
priately.” people shift between working and taking time to renew themselves and build fresh
skills.
These transitions require transformational assets that build your ability to change
throughout your life. Pursue three interrelated characteristics of transformation,
starting with attaining selfknowledge through a frank assessment of your present
self and what you might be like in the future. The second element is the ability to
create diverse networks of people drawn from a wide social circle. The third is
openness to new experiences and ideas plus the willingness to experiment and
change your behaviors.
“When life extends, most
people will have no The Multistage Life
choice but to work a For most of history, people lived only two life stages: child and adult. The 20th
great deal longer.” century saw the emergence of two “agelocated” stages: teenagers and retirees. As
the threestage life becomes unworkable, three new life stages will materialize:
“the Explorer, the Independent Producer and the Portfolio.” A particular mindset
determines these stages, more than a particular age. Stanford literature professor
Robert Pogue Harrison describes this mindset as “juvenescence, the state of
being youthful or growing young.” Maintaining a youthful mindset enables
people to experiment, play, change and grow.
Explorers observe their surroundings, figure out their likes and dislikes through
trial and error, and discover their natural talents. Throughout their lives, they
examine their values and develop their identities. Amassing a range of
“The acquisition of new
skills and new experiences prepares Explorers to make choices that align with their values,
specialisms will become interests and skill sets. Picking a suitable educational direction, finding a fulfilling
a lifelong endeavor.” job, working for a company that mirrors your values and falling in love with the
right person affect the course of your life. Making the right choices takes on
greater significance if you live a century or longer; the impact of poor choices lasts
longer, too.
People may choose to become Independent Producers at various times in their

100year life. New forms of entrepreneurship will emerge as people leave
traditional careers to engage in independent work such as producing a product,
providing a service or pursuing an idea. Rather than trying to build a company to
run or sell, independent producers exploit the opportunities of the moment. The
Portfolio stage is not agedependent, although people in their later years may find
“The gift of a longer life it an attractive option. People in the Portfolio stage engage in a combination of
is ultimately the gift of activities, such as working, volunteering, and pursuing their hobbies
time. In this long sweep and interests.
of time, there is a chance
to craft a purposeful and
meaningful life.” The Language of Finance
Most people don’t understand the language and basics of finance. If you fail to
provide for your future, you run the risk of depleting your resources too early.
Adequate financial planning relies on “efficacy” – the belief in your ability to
accurately assess your finances – and “agency” – the selfcontrol to follow a
savings plan. People face three common financial planning pitfalls: the belief that
you can live on less than a 50% pension plus savings, assuming the equity you
build in your home will support you in retirement and trying to outsmart market
averages with a superior investment strategy. Develop financial literacy through
research and study. Manage your portfolio by diversifying your risk instead of
investing heavily in a few specific companies or your employer. Reduce risk as you
“As globalization and near retirement age, and safeguard your income during retirement.
technology changed how
people lived and Time is either the gift or the curse of living a longer life. In 1930, economist John
worked… increasing Maynard Keynes predicted that equally distributed prosperity would create
greater leisure time for more and more people. Keynes was correct that prosperity
129
longevity will do the begets leisure, but he miscalculated the massive increase of consumerism in the
same.” 20th century. People want more material possessions and will work longer hours
to get them. Keynes failed to foresee that lowerskilled workers would gain a
shorter work week, while higherincome earners would work longer than ever
before.
Yet, even people working fewer hours feel “timepoor.” Outside work, they rush
from one activity, chore or obligation to another. People may have more
discretionary time but they feel they have less spare time. A multistage life
requires flexibility and restructuring your time so you can work. The current
threestage life model makes it impossible to take time to retrain or renew. The
Industrial Revolution standardized the work week and led to changes in
“The 100year life…is not
government and society. Increased longevity will challenge existing societal
science fiction or some
wild guess about the constructs even more.
future, nor is it an upper
limit only for a lucky Redesigning Corporations
few.” Some companies will resist meeting the demands of the longerlived workforce,
but businesses will need to redesign their policies in six areas:
1. Expand the employeremployee relationship beyond tangible assets, and

design jobs to enhance people’s intangible assets such as productivity or
vitality.
2. Support personal transitions by providing training, helping employees
develop diverse networks and offering constructive feedback.
3. Shift practices built on the perspective of a threestage life to a multistage
life model.
“Following bestpractice
advice on healthy living 4. Consider men’s and women’s varying needs at different stages in their lives,
is a cornerstone of and provide flexibility in their hours, scheduling and deadlines.
making the most of the 5. Shed policies, both written and unwritten, that promote ageism.
gift of longevity.” 6. To encourage people to take time for experimentation and renewal, stop
penalizing applicants for time gaps in their résumés.
About the Authors

Management practice professor Lynda Gratton received the 2015 award for best teacher at the London
Business School, where Andrew Scott is an economics professor. He previously taught at Harvard University
and the London School of Economics.
130
12/18/2016 The Effective Executive Summary | Peter F. Drucker
Book
The Effective Executive Executives’ positions conspire
Peter F. Drucker against their effectiveness. Peter
Harper, 2006 Drucker says to fix this problem with
First Edition: 1966 five new habits.
Buy the book
Recommendation
As an author and an intellectual, the late Peter F. Drucker was a true business
sage. Recognized as the father of modern management, Drucker forecast
numerous pivotal trends, including decentralization, privatization and the
development of the information society. He introduced the concept of the
“knowledge worker,” a term he employs widely in this fascinating book. Each
Drucker book is a genuine business classic, including this one. He delves into
detail about what managers should accomplish and how they should
conceptualize their role. getAbstract believes it will help you think productively
about what you do. No one writes more intelligently or presciently on
management and its functions than Drucker. All executives, even those who are
already effective, will benefit from reading this informative, enlightening book.

• Why an executive must be effective
• What five habits you should develop to become a more productive manager
• Why society depends on successful organizations and the executives who
make them so
Take-Aways
• Effective executives prioritize, make plans, take responsibility,
communicate, seek opportunities, hold productive meetings and contribute
to their organizations.
• An executive’s position conspires against his or her effectiveness.
• Nevertheless, you can teach yourself to become an effective executive.
• To do so, you must master five specific habits.
• The first habit is to control your time and understand how you use it.
• The second habit is to focus on what you can contribute to your
organization.
• The third habit is to build on your strengths and your company’s strengths.
• The fourth habit is to prioritize your objectives, and work on them one by
one.
131
• The fifth habit is to standardize decision making where possible.

• Society depends on effective organizations, which depend on effective
leaders.
Summary
You Can Teach Yourself to Become Effective

You cannot manage others if you cannot manage yourself. For the executive – the
ultimate “knowledge worker” – this means managing your own effectiveness. This
is not a complicated task. It involves adopting a few specific practices and five
pivotal habits. Being effective is a linchpin requirement for any executive. An
“The executive is paid for
ineffective executive is an imposter – a leader in name only. To become more
being effective.”
productive, use these eight practices:
1. Focus on what needs doing – Often, this may differ from what you want
to do. Tend to only one or two tasks at any given time. Delegate the others.
2. Make sure your actions benefit your organization – Are you doing
the best thing for your enterprise? The organization is what counts, not the
“owners, the stock price, the employees or the executives.”
3. Create an action plan – Knowledge, wisdom and expertise are useless
without action. However, action without a plan is counterproductive. Your
action plan represents your intentions, not your commitments. Be ready to
change if circumstances warrant it. Periodically check your plan to ensure
“Effective executives do that it is still working correctly.
first things first, and 4. Assume responsibility for your actions – Make sure your direct
they do one thing at a reports know the action plan and all its important particulars, including
time.” deadlines. Determine who will carry it out, who it affects, and who must be
informed and updated about the plan.
5. Communicate your plan to others – This includes your subordinates
and superiors.
6. Seek opportunities – See change as something to exploit, not as a threat.
Never let problems block opportunities.
7. Make your meetings productive – Meetings are either very useful or
giant timewasters. No inbetween exists. Having fruitful meetings requires
selfdiscipline. End them as soon as you accomplish your objectives.
8. Orient your thinking to “we,” not “I” – What is important to you isn’t
really relevant. What matters most is what is valuable for the organization.
“Executives are doers;
they execute.” Executives can be brilliant, imaginative and informed, and yet still ineffective.
Effective executives are systematic. They work hard in the right areas and their
results define them. They are knowledge workers who help the organization
achieve its goals. They look beyond mere management tasks and try to perceive
important trends that will affect their organizations. Unfortunately, executives’
positions of authority actually conspire against their personal effectiveness.
Time constraints
An executive’s time isn't their own. It belongs to everyone in the organization.
Thus, when people inside or outside the firm need to interact with an executive,
they feel completely free to interrupt. Such constant breaks in concentration make
it hard to work productively.
“Time is the scarcest
resource, and unless it is
managed, nothing else Operationitis
can be managed.”
132
U.S. executives come up through the ranks, so they often focus a lion’s share of
their attention on their original “home” departments. That is, they get stuck in
operational mode. Some analysts fault European executives for the same problem,
but, ironically, many European executives move into top management from a
“central secretariat,” where they previously performed as generalists.
Organizational silos
Most organizations have separate fiefdoms where individual experts focus on
specialized pursuits – accounting, legal, research, data management and so on.
Each group has separate agendas and goals, but their executives often must
“Organizations are held
combine their efforts. Unfortunately, executives do not always have control over
together by information
area specialists and may not get the support they require from their own realms.
rather than by
ownership or
command.” Insularity
Executives operate deep inside organizations. As a result, many do not come into
contact with outsiders, including customers, market analysts, suppliers and so on.
But these exterior connections really count. The organization cannot survive
without favorable outside results, such as increased sales, good public relations
and strong distributor support. Thus, for any organization, the external reality
controls almost everything of merit. Unfortunately, as they advance within
organizations, many executives lose touch with this crucial external reality. Their
effectiveness suffers as they begin to focus more on computergenerated data
about operations and less on actual marketplace realities.
All executives face such occupational hazards. Indeed, they go with the territory.
Fortunately, you can learn to become more effective, despite the obstacles, by
“Listen first, speak last.”
developing these five habits:
First Habit: “Know Thy Time”

To use your time well, take these three steps:
1. “Recording time” – If you don’t keep track of your time, you cannot know
how you spend (or waste) it. Therefore, carefully write down how long each
task takes, then use this log as a guide to delegate certain chores and
activities. Assign these items to your direct reports, but also ask if you are
wasting their time. If so, make a change. The more effective they are, the
more effective you will become.
“The most common 2. “Managing time” – Do you have a good system in place to protect your
cause of executive failure time? You do not if you routinely experience the same periodic time crises –
is inability or unwilling for example, a rush to conduct an annual inventory. Plan recurring events
ness to change with the better to save time. Sometimes, having too many people on hand wastes
demands of a new time because employees interact instead of just doing the activities involved.
position.” Prune personnel to operate more efficiently. Holding too many meetings is a
major timewaster. Cut back whenever possible.
3. “Consolidating time” – If you are a senior executive, you are likely to
have control over only onequarter of your own time, maybe less. Determine
how much discretionary time you possess, then consolidate it to employ it
well. Set this block of time aside to use productively. Don’t let anything
interfere. Often, this requires iron selfdiscipline. So be it. You cannot
achieve sustained results in small chunks of time.
Second Habit: “What Can I Contribute?”

Do you worry too much about your staff members’ daily activities and not enough
“The great majority of about what results they accomplish? An effective sales manager is not someone
executives tend to focus who runs the sales department but, rather, someone who makes sure the
downward. They are company’s products sell. An effective accountant doesn’t just balance the books;
occupied with efforts instead, they supply the financial information the business needs to ensure that it
rather than results.” can operate profitably. Focus less on your individual effort. Concentrate instead
on the real core contributions you can make to the organization.
133
Do not define these contributions narrowly. Include “direct results,” such as

increased sales or decreased costs, as well as work that develops the organization,
such as guiding new employees, or helping build and maintain your organization’s
values. Ask your colleagues, subordinates and superiors, “What contribution can I
make that will enable you to contribute more effectively?” Then work hard to
deliver it.
Third Habit: “Making Strength Productive”

Strength is an asset. This is true regarding your strong points – your abilities,
expertise, knowledge and personality – and those of your coworkers. The
“The truly important effective executive always builds on his or her strengths, and on others’ strengths,
events on the outside are as well. This starts with staffing decisions. When hiring, do not try to avoid
not the trends. They are
weaknesses. Instead, maximize strengths. Do not ask, “Will this person work well
changes in the trends.”
with me?” Rather, focus on the contributions that the person could make to the
organization.
During the American Civil War, advisers warned U.S. President Abraham Lincoln
that the highly effective General Ulysses S. Grant was a drunkard. “If I knew his
brand, I’d send a barrel...to some other generals,” Lincoln replied. He always
focused on results, not weaknesses. So did General Robert E. Lee, head of the
Confederate Army. One general under Lee’s command ignored his orders, thus
upsetting Lee’s battle plan. “Why don’t you relieve him of his command?” one aide
asked Lee. “What an absurd question,” Lee replied. “He performs.” In business, as
in war, results count. Keep that uppermost in your mind when evaluating future –
and current – employees.
“Effective executives
know that their subordi
Fourth Habit: “First Things First”
nates are paid to
Multitasking is a mistake and really doesn’t work well. To get things done,
perform, and not to
concentrate on one task at a time, or two at the most. Three is almost always
please their superiors.”
unrealistic. Yet, throughout history some geniuses have been able to do numerous
tasks at once. Wolfgang Mozart supposedly could create multiple musical
compositions at the same time. But most of us are not Mozarts. You may be able
to accomplish your objectives by multitasking, but your work will be substandard.
Instead of multitasking, work smartly and quickly on one job at a time. This does
not mean working in a hurried dither; it means concentrating and working
steadily on the task at hand. Involve yourself and your team in productive
pursuits. If an activity is unproductive, drop it. Always prioritize. This takes
courage. Aim high in your goals. Keep your eye on the future, not on the past.
Always allow a margin of work time for the unexpected to occur. It definitely will.
“The sooner operating

Fifth Habit: “Decision Making”
managers learn to make
Most situations that require you to make decisions are basically generic – that is,
decisions as genuine
judgments on risk and typical and unexceptional. You can deal with such circumstances by applying
uncertainty, the sooner established rules, and general principles and procedures. The challenge is to
we will overcome one of determine when a situation is, indeed, typical or when it is different in some way
the basic weaknesses of that needs unique handling. The biggest decisionmaking mistake is to try to deal
large organizations – with a generic problem as if it were unusual.
the absence of any
training and testing for For example, production problems recur continuously, so you can deal with them
the decisionmaking top by using decisions and actions that worked well in the past. On the other hand, a
positions.” massive power failure (like the one in northeastern North America in 1965) is a
hugely atypical event. Resolving it demands special decision making, not the
application of proven rules. Being able to distinguish generic situations from
extraordinary ones is the core of effective executive decision making.
“The Criterion of Relevance”

The value of the decisions you make depends on their relevance. This is the
correct measurement of the validity of your subjective judgment regarding any
situation you have to handle as an executive. The clarity and relevance of your
134
opinion matter because the real facts of most situations are rarely discernible
immediately; they usually manifest over a period of time.
“Most executives have Always operate as if the “traditional measurement is not the right measurement.”
learned that what one Look for other options. For example, you can measure the value of an investment
postpones, one actually or capital expenditure according to how long it will take to recover your outlay.
abandons.” You can determine an investment’s anticipated profitability or the current value of
the expected returns. Each of these yardsticks presents only a partial picture of
the expenditure’s probable value, so insist that your accountants provide all such
calculations. The combination of data that emerges from these separate ways of
gauging relevance will enable you to make the most informed decision.
Everything Depends on You

As an executive and a knowledge worker, you represent a highly valuable –
indeed, indispensable – resource. Society depends on you, and millions of
knowledge workers like you, to be maximally effective. If you are effective, your
organization can be productive and make important contributions to the general
good. Purposeful, efficient organizations can serve as “useful tools” to make life
“A decision requires better for all. This is an enlightened and noble purpose. But society cannot
courage as much as it
achieve this vital goal if its organizations are ineffective. To avoid that pitfall, they
requires judgment.”
require strong knowledge workers. Thus, you are an integral element of the
system that moves society forward. Fortunately, any executive can learn to be an
even more effective professional. It’s a matter of habit.
About the Author

Peter F. Drucker was a management consultant and writer. His 39 books and numerous articles discuss how
humans organize themselves in business, government and the nonprofit arena. Drucker died in 2005.
135
12/18/2016 The Hard Thing About Hard Things Summary | Ben Horowitz
Book
The Hard Thing About Hard
Instructive tales from a tech survivor:
Things A Silicon Valley entrepreneur tells
what he learned the hard way.
Building a Business When There Are No Easy Answers
Ben Horowitz
HarperBusiness, 2014
Buy the book
Recommendation
Ben Horowitz guided Loudcloud through lifeordeath struggles before selling it
to HewlettPackard for $1.65 billion. He argues that no formula can promise
entrepreneurial success. Horowitz is a firstrate storyteller and a refreshingly
irreverent teacher who uses allusions ranging from Jay Z to Clint Eastwood to Dr.
Seuss. Any business leader will find worthy guidance in this exhortation to persist
through “the Struggle.” getAbstract recommends Horowitz’s part autobiography,
part tip sheet to anyone building a company.

• What Loudcloud’s struggles reveal about running a startup
• Why it is important to put your people before products or profits
• What qualities a leader needs
• When you should consider selling your company
Take-Aways
• You may start a company with high hopes, but eventually – like Ben
Horowitz at Loudcloud – you’ll experience “the Struggle.”
• Horowitz didn’t struggle alone; he enlisted the best minds in order to
address his company’s problems.
• His advice: Put your people first, then your products, and then your profits.
• People with “the right kind of ambition” care about the team’s success.
• Don’t convey only optimism; be honest about threats to the company.
• Managers should deliver news of firings to their people with compassion;
never outsource this task to HR.
• Minimize politics about pay, promotion and territory with welldesigned
processes.
• Company culture drives behavior that moves the firm toward its goals.
• Build your knowledge daily through small interactions with customers and
employees.
136
• The founders of successful startups like Loudcloud share one quality: They
don’t quit.
Summary
Loudcloud, Opsware and “the Struggle”

Every startup encounters the Struggle. Your product turns out to have costly
flaws. Your cash runs low, and your venture capitalist tells you fund raising seems
unlikely. A loyal customer leaves you. A valuable employee walks away.
“Hard things are hard
because there are no There’s no way around the Struggle and no formula for fixing your problems. Your
easy answers or company might not make it. Entrepreneurs who make it share one characteristic:
recipes...They are hard They don’t quit.
because you don’t know
the answer and you Netscape veterans Ben Horowitz and Marc Andreessen founded Loudcloud, a
cannot ask for help cloud services provider, in 1999 and soon hit a rocky road. Seven months after
without showing they launched Loudcloud – its name marked the first time “cloud” had been used
weakness.” popularly to describe a computing environment – Horowitz and Andreessen had
booked $10 million in contracts. They were hiring so fast – 30 employees a month
– that workers had to sit in the hallways.
Then came the dotcom crash of 2000; the NASDAQ fell by 10%. Loudcloud
needed capital but faced long odds. After Horowitz pitched one set of prospective
backers, a colleague told him the skeptical investors “thought you were smoking
crack.” Loudcloud raised a total of $120 million, but with so many startups
collapsing, the company’s bookings fell far short of its forecasts.
Horowitz and his board, seeing few prospects for investment from the private
“There are no shortcuts market, decided to take Loudcloud public. It was a risky move, with just six weeks
to knowledge, especially of cash remaining in the worst possible environment for a technology IPO. The
knowledge gained from company took a pounding in the press: BusinessWeek called it “the IPO from
personal experience.” hell.” The offering debuted at $6 a share and the company raised $162.5 million,
but nobody celebrated. As the dotcom downturn worsened, the company laid off
15% of its workforce and its stock fell to $2.
Horowitz engineered a deal to sell the cloud business to EDS for $63.5 million and
remake Loudcloud as a software company built around its intellectual property,
Opsware. Investors balked: Its share price plummeted to 35 cents before slowly
recovering.
As Horowitz built the software business, he again responded to crises with bold
moves. When a key customer threatened to defect, Opsware bought a North
“The Struggle is when Carolina company that provided the client the software he wanted. When a major
you wonder why you new competitor began pummeling Opsware in the marketplace, Horowitz
started the company in launched the Darwin Project, during which staffers worked 14 hours per day,
the first place. The seven days per week, for six months.
Struggle is when people
ask you why you don’t After Herculean labors, Opsware’s software business “approached a $150 million
quit and you don’t know revenue run rate,” and its stock sometimes traded at a market capitalization of
the answer.” more than $800 million. Horowitz decided to entertain offers for Opsware, but
only at $14 or more a share. Eventually, HewlettPackard agreed to acquire the
company for $14.25 a share or $1.65 billion in cash.
Selling the company was wrenching, but Horowitz came to regard it as the
smartest move of his career. “We’d built something from nothing, saw it go back
to nothing again and then rebuilt it into a $1.65 billion franchise.”
Getting Through the Hard Times
137
As he guided Loudcloud and then Opsware through difficult days, Horowitz drew
“Every great entrepre strength from the lessons he learned:
neur from Steve Jobs to
Mark Zuckerberg went • “Don’t put it all on your shoulders” – As CEO, you can’t share
through the Struggle...so everything, but remember that you don’t have to bear every burden alone.
you are not alone. But Muster as many brains as possible to attack a problem.
that does not mean that • Remember “there is always a move” – Running a company is like
you will make it.” playing chess: When you think you’re out of moves, think again. You always
have a move.
• “Play long enough and you might get lucky” – The technology
environment changes so fast that you might find the elusive answer another
day, if you can just hang on.
• “Tell it like it is” – At first, Horowitz thought his role as CEO required
him to set a positive tone and avoid letting the workforce know the gravity
of the company’s problems. Instead of motivating the troops, that approach
compromised his credibility. As CEO, you’re better off sharing information
about your firm’s problems with those who can harness their energy toward
“Managers must lay off solving them.
their own people. They
cannot pass the task to
Dealing with Layoffs and Firings
HR...if you hired me and
Horowitz’s company went through three separate layoffs involving a combined
I busted my ass working
400 employees. Few startups recover from consecutive layoffs of that magnitude,
for you, I expect you to
have the courage to lay because they break the trust of those left behind. Horowitz believed Loudcloud
me off yourself.” was able to keep its best employees after multiple layoffs because “we laid people
off the right way.”
If you must cut staff, begin the layoffs as soon as possible after deciding to do so,
because word about dismissals leaking out may cause further and even greater
problems. Have managers deliver the news to their own people; never outsource it
to human resources. Managers should explain that the layoffs stem from a
company failure, not the employees’ personal failures. They should make clear the
decisions are nonnegotiable and should explain severance packages fully.
When you fire an executive, the first step is figuring out why you hired the wrong
person in the first place, or you’ll be firing another executive soon. Maybe you
“The first thing that any
hired “for lack of weakness rather than for strengths.” Or maybe you didn’t define
successful CEO must do
the position correctly at the outset.
is get really great people
to work for her.” The Three P’s Jim Barksdale, Horowitz’s old boss at Netscape, once said, “We
take care of the people, the product and the profits – in that order.” If people like
working for your company and you look out for them, they will reward you with
loyalty and hard work. If you don’t take care of your people, the product and the
profits won’t matter.
Taking care of people means training them well and having managers regularly
meet oneonone with their direct reports. It also means avoiding “management
debt.” That accumulates when you make a shortterm management move that has
costly, longterm consequences. Examples would be overcompensating an
employee who has a competing job offer or putting two people in the same job
“Even with all the advice because you want to keep both in the company. The best CEOs avoid acquiring
and hindsight in the management debt. Faced with cutting a popular project that’s not in the
world, hard things will company’s longterm plans or keeping it for morale purposes, they’ll cut it every
continue to be hard
time. They make hard decisions that “ruffle the feathers.”
things.”
Running Your Growing Company

If you’re fortunate enough to see your company reach 1,000 employees, it will be a
profoundly different organization than when you employed 10 people. You must
cope with new challenges:
138
• Minimizing company politics – Political behavior can seep into a

variety of corporate activities, including performance reviews, pay,
organizational structure, territory and promotions. Curtail political behavior
“Build a culture that by designing strict processes and following them relentlessly. Be sure
rewards – not punishes everyone understands your promotion process. When you decide to
– people for getting reorganize, do it quickly, without leaving time for lobbying.
problems into the open
where they can be • Hiring employees with the “right kind of ambition” – Go for
solved.” candidates who see through a “team” lens and whose ambition focuses on
being part of a winning company.
• Promoting a strong culture – Some startups boast about letting
employees bring pets to work or offering yoga classes. Those are perks, not
culture. True culture drives behavior. Consider Amazon: To keep costs
down, Jeff Bezos declared that the company would make all its desks out of
cheap doors from Home Depot.
What Makes a Leader?

A CEO should have some combination of the following traits:
“The most important
thing I learned as an en • “The ability to articulate the vision” – Steve Jobs persuaded Apple
trepreneur was to focus employees to believe in his vision even when the company was near
on what I needed to get bankruptcy.
right and stop worrying • “The right kind of ambition” – A leader creates an atmosphere of
about all the things that shared ambition and trust, a quality Bill Campbell exemplified at Intuit and
I did wrong or might do other organizations.
wrong.”
• “The ability to achieve the vision” – This quality helped Andy Grove
win the trust of Intel employees as he led them through a brilliant gambit:
moving from the memory business to the microprocessor business.
As CEO, work on all three qualities, even though you might be stronger in one or
two. Each quality enhances the others. If you can persuasively articulate a vision,
for example, employees will trust you and be patient with you as you lead them
toward it.
Ask three questions to judge how well a CEO performs: 1) “Does the CEO know
what to do?” 2) “Can the CEO get the company to do what she knows?” and 3)
“Every really good, “Did the CEO achieve the results against an appropriate set of objectives?”
really experienced
CEO...tend[s] to opt for Knowing what to do involves using strategy and sharp decision making. Acting
the hard answer to or strategically takes courage, because you’ll never have enough time to gather all the
ganizational issues... information you really need. That’s why you must keep acquiring knowledge, day
They’ll ruffle the by day, from many small interactions with customers and employees. When you
feathers.”
must make a decision, you’ll be better prepared to answer questions like: How
might our competitors respond? What’s the financial risk? How will employees
take this?
To get the company to “do what you know,” build a workplace where employees
can get things done. “The employees must be motivated, communication must be
strong, the amount of common knowledge must be vast and the context must be
clear.” The scale of your objectives should align with the scale of your company’s
opportunities.
During the toughest times, take care of your own psychological state. “Techniques
“Peacetime CEO focuses to calm your nerves” include recruiting trusted confidantes, putting your thoughts
on the big picture... on paper, and focusing on your destination rather than on what might go wrong.
Wartime CEO cares
about a speck of dust on
When to Sell Your Company
a gnat’s ass if it
interferes with the prime One of your toughest decisions may be when to sell. Consider two questions: Are
directive.” you very early in a potentially large market? Do you stand a good chance of
reaching number one in that market? If the answer to either question is no, you
139
should consider selling. When Google was young, the company received multiple
purchase offers for more than $1 billion. But Google did not sell. Its answer to
both questions would have been yes. Google was very early in a market that would
be larger than all the markets the wouldbe buyers owned. And Google had built a
highquality product that would be number one.
When Horowitz first fielded inquiries about selling Opsware, the company had
fewer than 50 customers. Horowitz believed Opsware had at least 10,000
potential customers and could reach number one. By the time Opsware had
“Focus on where you are
attained several hundred customers, it became clear that a company called BMC
going rather than on
was going to acquire either Opsware or a competitor, BladeLogic. In order to be
what you hope to avoid.”
number one, Horowitz concluded, Opsware would have to beat BMC and
BladeLogic together. A new technology, virtualization, was transforming the
market, which would push the company into a costly R&D race. In the end,
Horowitz decided to sell.
Andreessen Horowitz
After selling Opsware to HewlettPackard, Horowitz joined with Andreessen to
form a venture capital firm that would aid technology entrepreneurs. Besides
investing in companies, their firm, Andreessen Horowitz, advises CEOs on the
skills that company founders sometimes lack – managing executives, designing an
“If you don’t want to be organization and running a sales force. The most important lesson Horowitz tries
great, then you should to convey to entrepreneurs is that running a company is hard, a tough process
never have started a with no easy answers. “The only thing that prepares you to run a company is
company.” running a company.” The solutions lie in the executive’s instinct, in the confidence
that comes from experience and in the performance of this vital duty: “Embrace
the struggle.”
About the Author

Ben Horowitz is a cofounder and general partner of Silicon Valley venture capital firm Andreessen Horowitz.
140
12/19/2016 The One Minute Negotiator Summary | Don Hutson and George Lucas
Book
The One Minute Negotiator
Do you have “negotiaphobia” – the
Simple Steps to Reach Better Agreements dreaded fear of negotiating? Here’s
Don Hutson and George Lucas your cure
Berrett-Koehler, 2010
Buy the book
Recommendation
People intensely dislike negotiating. This is true for everyone, including senior
business professionals. This dread may derive from the mistaken attitude that
negotiation must be a win lose confrontation. Not so, according to Don Hutson
and George Lucas, who provide a memorable, threestep process you can use to
negotiate effectively. getAbstract likes this book’s clearheaded, easytofollow
explanation of the essence of negotiation, including how to plan for a negotiation
and how to negotiate successfully. However, the book is mistitled. Nothing takes
only one minute, certainly not the careful assessment, strategic thinking and
tactical planning that the authors correctly assert must accompany any
negotiation. Otherwise, this is an outstanding book that can help you become a
more successful negotiator.

• What is “negotiaphobia”
• How to plan for a negotiation with the “EASY treatment process”: engage,
assess and strategize, and conduct “your oneminute drill”
• What the four negotiation strategies are
• When to use each strategy
Take-Aways
• Most people suffer “negotiaphobia”: the fear of negotiating.
• Overcome this fear with the “EASY treatment process: Engage, Assess, and
Strategize,” and then conduct “Your OneMinute Drill.”
• To engage, determine how you will treat the other side in a negotiation.
• To assess, identify your personal negotiating tendencies, and evaluate the
other side’s likely tendencies.
• To strategize, select the best negotiating tactic for your particular situation.
• Choose among four negotiation strategies: “avoidance, accommodation,
competition” – and the most effective approach – “collaboration.”
• Avoidance is the negotiation strategy most people prefer, but it is weak.
• Accommodation is giving the other side what it wants.
141
• Competition is the zerosum game strategy – I win; you lose.

• Though most people think otherwise, compromise is not a true negotiation
strategy.
Summary
“Negotiaphobia”
Jay Baxter was excited. He and his wife, Laura, had won a trip on a luxury yacht
docked in Miami as part of the Top Producers Award Trip sponsored by his
company, XL Information Solutions. They were pleased to leave belowfreezing
“No two negotiations are temperatures in Cleveland for the sunny bliss of Miami. Additionally, Jay was
alike.” proud to be the topquota producer among the 17 salespeople on the cruise. He
hoped (and expected) that the company would select him as “Salesperson of the
Year.” Jay also thought that the firm would give him his dream job as the new
regional sales manager for the Upper Midwest. However, the trip would not be all
fun. Along with the other salespeople, Jay had to attend a multiday workshop on
negotiating taught by Dr. Pat, a negotiations expert. The workshop was called
“Treating Your Negotiaphobia.”
Jay ran into his friend Eduardo Carlos, another XL sales rep. Eduardo told Jay
that the latest gossip held that another salesperson, Cathy Simmons, was going to
win the top sales award and be appointed to the regional sales manager job. Jay
“While collaboration is a
noble goal, if you’re was baffled. When he last checked the sales figures, he was a strong 8% ahead of
negotiating with a Cathy. But Eduardo told Jay that the determining factor for this year’s sales award
tough, competitive was contribution to gross margin – where Cathy was well ahead.
individual who has no
interest in collaborating, Crushed, Jay sat down in one of the ship’s lounges and ordered a drink. A stranger
you might as well be wearing cowboy boots said hello and asked Jay why he looked so down. Jay
standing on the railroad explained and additionally complained that now he had to attend a negotiation
tracks trying to seminar by some “clown” named Dr. Pat. Jay groused, “He has probably never
negotiate with a sold one dime’s worth of information management systems in his life, and he is
speeding train.” (Dr. Ken going to tell us how to do it.” Jay then asked his new Texas friend his name. “My
Blanchard, The One name is Pat, Patrick Perkins. Some of my students call me Dr. Pat.” The
Minute Manager) negotiations expert then told Jay that he’d see him at the seminar the next
morning.
That night, all the XL sales reps and the company’s president, Bob Blankenship,
gathered for a special dinner to honor the salesperson of the year, Cathy
Simmons, whom the president also appointed as regional sales manager. Jay
gracefully congratulated Cathy, but he remained distraught.
The next day, Dr. Pat began to teach the sales reps about the fine points of
negotiation. Blankenship kicked off the meeting by telling the reps that they
needed to focus on profitable sales rather than volume sales. They all had to
“Most people are become better negotiators to achieve more profitable prices for the firm’s
extremely predictable information management systems.
when it comes to how
they negotiate.” Dr. Pat began by defining negotiation as “the ongoing process through which two
or more parties, whose positions are not necessarily consistent, work in an effort
to reach an agreement.” The word “process” indicates something that takes place
over time, and not simply a “decision phase.” While agreement is the goal of any
negotiation, often the bargaining parties do not achieve it.
People share a common misconception that negotiating leads to both sides

reaching a compromise. Nothing could be further from the truth. A compromise,
which normally means splitting the difference, usually makes both parties
unhappy. For example, a car seller asks $7,000 for his vehicle. A prospect offers
$5,000. They split the difference and agree on $6,000. Afterward, the seller
142
berates himself for selling his car for $1,000 less than he believed it was worth.
“Proficient negotiators Similarly, the buyer is angry with herself for spending $1,000 more than she
quickly read the other planned.
side, because no one
negotiates in a vacuum.” Negotiate in EASY Steps
People can overcome their fear of negotiation, called “negotiaphobia,” by using
the “EASY treatment process.” Go through these steps for every negotiation:
“Engage” – How Will You Treat the Other Side?

Know that you are involved “in a negotiation” and think through the available
strategies that you can employ. The four main negotiation strategies are
“avoidance, accommodation, competition and collaboration.”
Competition and collaboration are “proactive,” while avoidance and

“Proficient negotiators accommodation are “reactive.” Competition and avoidance call for “low
quickly read the other cooperation,” while accommodation and collaboration involve “high cooperation.”
side, because no one In any negotiation, it is always better to be proactive instead of reactive, and to
negotiates in a vacuum.” cooperate rather than obstruct. Avoidance is the attitude: “I would like to put it off
for later, but I can’t.” This weak negotiating strategy, which most negotiaphobes
use, is no strategy at all.
Accommodation is based on giving the other side whatever it wants. While people
frequently think they can develop future relationships through accommodation,
they will find that they won’t like the relationships that they build this way. The
second party will always assume it can win. While accommodation is sometimes
necessary in a negotiation, use it with great care.
Competition is the zerosum game strategy that ends up meaning: I win; you lose.
“Proficient negotiators This precludes any relationship. For example, a tow truck driver negotiating with
reap the rewards of their a motorist stranded in the desert can charge any amount and expect to get it; the
efforts; solid strategies trucker faces a miniscule likelihood of ever dealing with the same driver again.
generate superior Negotiators who compete always do better than those who accommodate. If the
outcomes.” other side is competitive and recognizes that you will compete, too, it often will
provide opportunities to collaborate instead. Conversely, those who are reluctant
to compete frequently get steamrolled.
Collaboration is a winwin strategy. For it to work, both parties must put their
“true needs” on the table. Sadly, collaboration remains rare. Collaborative
negotiators are either “sages,” who collaborate only when that’s what works best,
or “dreamers,” who always collaborate in hopes that other parties will reciprocate.
The best tactic is to be both a sage and a dreamer – practical but optimistic.
“Many people...associate “Assess” – What Is Likely to Happen?

negotiation with the Evaluate your tendencies regarding how you normally negotiate and how the
ability to ‘get them other party negotiates. Assess yourself accurately to determine which strategic
before they get you’.” style you use most often. Many people prefer avoidance – or use it as a default
negotiation mode – to avoid potential confrontations or unpleasantness. The most
effective negotiators employ a collaborative style, but that doesn’t mean you
always should collaborate in every negotiation. If you try to collaborate just when
the other party is competing, you are, in fact, practicing accommodation.
In the assessment phase of creating your negotiation strategy, analyze what tactics
the other side is likely to use. If you have negotiated with the same parties in the
past, expect them to utilize the approach they deployed last time; that is, “the best
predictor of future behavior is past behavior.” Observe and analyze the other
side’s “behavioral style tendencies” via four categories:
“Proficient negotiators
have developed an 1. “Analyticals” – These nonemotional number crunchers want as much data
advanced capability to as possible before they make decisions. They often utilize avoidance.
maximize the benefit of
all parties involved.”
143
2. “Drivers” – These direct, nononsense individuals have short attention

spans. They often employ a heavily competitive strategy. If you can remain
unflustered and avoid caving in to their initial demands, drivers often will
move quickly to a collaborative posture.
3. “Expressives” – These “wannabe collaborators” also have short attention
spans. For the best outcomes, reach agreement with them before they lose
interest and move on to something else. If you can, locate an individual
within the expressive’s company who can outline the firm’s (and thus the
expressive’s) needs.
“Many negotiators are
highly predictable 4. “Amiables” – These warm, friendly people are not good negotiation
because their negotia opposites. They appear to like you a lot, but they may feel the same way
phobia leaves them about everybody involved. Amiables hate to make decisions and are, as such,
feeling comfortable classic avoiders. Often, you can guide them to accommodate you during a
repeatedly using the negotiation.
same strategy time and
again.” If you have never negotiated with your counterparties before, try to find out how
they make their agreements with their customers, vendors or suppliers. The way
they treat them is how they will treat you. You can learn a lot about a company by
checking its website. Is the firm open and transparent? Does it provide useful
information about itself? If so, expect it to be collaborative. If, on the other hand,
the firm is highly secretive and not willing to share much data, expect it to adopt a
competitive posture. If you are not sure how the other party will negotiate, begin
with a collaborative attitude. If they are unwilling to work with you, become
competitive quickly.
“Collaboration requires “Strategize” – Which Approach Will Work?

a great deal more Your next step in the EASY process is to consider how you will handle this
work...but...the returns particular negotiation. Although avoidance is not a strong tactic, you may want to
can make it more than use it when negotiating on a minor issue or when your best option requires no
worth this investment.” negotiation. However, minor issues can turn into major ones over time. Thus,
avoidance may be a good approach today, but perhaps a terrible method for
handling the same things tomorrow. When the other side avoids negotiating, that
may indicate that it no longer has any interest in doing business – for example, if
a prospect no longer returns your calls. Every salesperson is accustomed to
objections, which are useful if they indicate that your prospect is still considering
your proposal.
Accommodation is a proper strategy if your hand is obviously considerably weaker

than the other side’s. You may be able to increase your leverage if you can turn a
weak hand into a strong one by having superior knowledge or by preparing
“Our success in extensively for the negotiation. If you must accommodate, qualify your stance, for
negotiating is dependent example: “This time around, due to the unique situation we find ourselves in, we
on our ability to would be willing to entertain what you propose.” If you handle things this way, it
correctly assess the won't create an accommodationist precedent for the future.
strategies being used by
others.” Use the competitive strategy when the other side refuses to collaborate or when
collaboration is not worth the time or trouble. Collaboration is the winwin
strategy you should strive to pursue in most instances. Everyone comes out ahead,
and a collaborative outcome preserves positive relationships, the core of doing
business. Try to work collaboratively on negotiations that happen internally in
your organization. The last thing you want to do is to harm a relationship with
another business unit in your company; you may need to work with that unit in
the future.
“Your OneMinute Drill”

“Compromise causes The last part of the EASY process is the Y – “Your OneMinute Drill.” Take a
more confusion...than moment prior to your negotiation to stop and think about the three steps of the
any other issue.” EASY process: engage, assess and strategize. In doing so, ask yourself: Does this
situation call for negotiation? What strategy do I normally use in this type of
144
negotiation? What about the other side? Considering what I am dealing with,
what is my optimum strategy? Think things through systematically. When you do,
you will have a better idea on how to proceed during the actual negotiation.
If you think carefully about each step, you will begin to negotiate better. Your fear
of negotiation will dissipate because you have demystified the process and become
more skillful. Going through each step is essential to being a good negotiator. In
contrast, poor negotiators employ various tactics during negotiations without
“As long as the parties
thinking about their overall strategies, a clear mistake.
are talking to each
other, there is still a
chance for success.” A Big Payoff for Jay
With the expression of this last thought, Dr. Pat concluded his multiday
negotiation seminar. Jay promised himself to put the negotiation principles that
he had learned to work immediately in his selling efforts. He did, and with terrific
results. At the next year’s award dinner, Jay won salesperson of the year honors.
Plus, he learned to use his knowledge of negotiation not just in business, but in all
areas of his life.
About the Authors

Don Hutson, author of 12 books, is chairman and CEO of US Learning, where consultant George Lucas serves
on the board.
145
12/18/2016 The Power of Habit Summary | Charles Duhigg | PDF Download
Book
The Power of Habit
Why We Do What We Do in Life and Business You can change your life by mastering
your habits.
Charles Duhigg
Random House, 2012
Buy the book
Recommendation
Have you ever wondered why some people can adopt a healthier lifestyle or realize
professional achievement, while others flail and fail? Journalist Charles Duhigg
attributes this dichotomy to habit and explains that successful people have
learned to control and change their habits. First, they had to understand that the
three steps of the “habit loop” – “cue, routine and reward” – determine what
individuals do without thinking. By analyzing how undesirable habits such as
overeating, excess drinking or smoking operate in that loop by satiating cravings,
people who want to change can control habits that may seem to control them.
getAbstract recommends this fun, educational book to anyone who wants to
embark on selfimprovement. May the force of habit be with you.

• How people’s habits influence their lives
• How habits work
• How people can change their bad habits
Take-Aways
• Habits are actions people first decide to do deliberately and keep doing
subconsciously.
• People can change their bad habits if they learn how habits operate.
• The “habit loop” has three stages: a “cue” propels a person into a “routine”
to reach the goal of a “reward.”
• Understanding how your habits fit these habit loop stages can help you
change them.
• Correcting habits is hard because they fulfill cravings that demand
satisfaction, but you can learn not to respond to a habit’s cue and rewards
with the same old routine.
• Starbucks teaches employees willpower by training them to remain calm in
the face of “inflection points” – situations that are likely to weaken their
selfdiscipline.
• Altering “keystone habits” can jumpstart good new behaviors or change
bad old ones.
146
• Giant retailers, such as Target, sell to consumers by analyzing their

shopping habits.
• Paul O’Neill of Alcoa, Howard Schultz of Starbucks, football coach Tony
Dungy and Martin Luther King Jr. shaped change by destroying old habits
and creating new ones.
• Debate continues about how much responsibility people have for their
adverse actions and how much blame they can place on their habits.
Summary
A Matter of Habit
A habit is an activity that a person deliberately decides to perform once and
continues doing without focus, often frequently. Think about the complicated
procedures you automatically employ to drive your car. Habits develop because
“Habits, scientists say, the human brain is wired to seek ways to conserve energy. Researchers who study
emerge because the the science of habits observe that patients who lose their memories due to illness
brain is constantly or injury still retain the ability to carry out their habits. A patient named Eugene
looking for ways to save suffered from a damaging attack of viral encephalitis and could no longer even
effort.”
draw a rough floor plan of his home, but he could still find the kitchen when he
wanted a snack. He proved that “someone who can’t remember his own age or
almost anything else can develop habits that seem inconceivably complex – until
you realize everyone relies on similar neurological processes every day.”
“Automatic behaviors” reside in the deep brain’s basal ganglia, which translate
deeds into customary actions by using a process called “chunking.” For example,
picking up your car keys is a chunk of behavior that immediately triggers the other
chunks involved in driving.
The threestage “habit loop” also develops in the basal ganglia. In the first stage,
“Your brain can’t tell the
the brain seeks a “cue” that will put it into automatic pilot and indicate what it
difference between bad
should tell the body to do. The second stage is the “routine,” or the ensuing habit.
and good habits, and so
Then comes the “reward,” which teaches the brain whether the loop in question is
if you have a bad one,
“worth remembering for the future.” When the cue and the reward connect, the
it’s always lurking there,
waiting for the right brain develops a strong feeling of expectation, leading to a craving and the birth of
cues and rewards.” a habit. Unfortunately, the brain does not judge whether the new habit is
beneficial or detrimental, so hardtobreak bad habits get rooted. However, you
can change destructive habits and adopt new, positive ones by understanding and
managing the cueroutinereward loop. Focus on your cues and rewards, and alter
your routine to thwart the craving.
Pining for Pepsodent and Begging for Febreze

Claude Hopkins made a fortune marketing Pepsodent toothpaste by inventing
advertising tactics designed to trigger “new habits among consumers.” Brushing
your teeth was not a nationwide habit in the US in the early 20th century, but
Hopkins understood that if he marketed a desire (that is, a craving), he could
“As we associate cues
make Pepsodent indispensable in Americans’ daily lives. He built the craving to
with certain rewards, a
get rid of “tooth film” in order to achieve the reward of “beautiful teeth.” In
subconscious craving
addition, Pepsodent provided a mintyfresh feeling in the mouth. Hopkins
emerges in our brains
marketed that feeling and created a national toothpaste habit.
that starts the habit loop
spinning.”
Similarly, Procter & Gamble mastered the habit loop to sell Febreze, an odor
destroying air freshener. After much trial and error, P&G marketers learned that
shoppers did not want to admit that their homes smelled bad. Instead, they
wanted to reward themselves for housecleaning by making the air smell nice as “a
little minicelebration.” After P&G’s original Febreze ad campaign failed, its next
sets of ads portrayed the product as providing a way to add a satisfying finishing
touch to a newly cleaned room – and sales skyrocketed.
147
Researchers found that the brain begins to look forward to the reward that a
habitual routine provides. Encountering the right cue sends the brain into a
“subconscious craving” that sets off the habit loop, leading to the routine and the
“Cravings...drive habits. reward. However, this process is not inevitable. Individuals can analyze their
And figuring out how to cravings to learn which one impels the habit. Similarly, people can manipulate
spark a craving makes their cravings to better ends; for example, if you value the endorphin rush of
creating a new habit exercise, your routine of taking a run every morning can become an automatic
easier.” habit loop.
“The Golden Rule of Habit Change”

Florida football coach Tony Dungy understood the power of habit. Managing the
lowachieving Tampa Bay Buccaneers, he realized that if his players could alter
their habits and not overthink their plays, they would win more often. Instead of
modifying his players’ cues, he changed their routines. That is the basis of
changing a habit: “Almost any behavior can be transformed if the cue and reward
stay the same.” Dungy taught his athletes a smaller number of plays but regularly
drilled them in applying those plays whenever they got the appropriate cues. This
“To change an old habit, helped the Bucs succeed, though they still couldn’t win big games in a pinch.
you must address an old When the Bucs fired Dungy in 2001, he went to the Indianapolis Colts and built a
craving. You have to cohesive, winning team using the same strategy.
keep the same cues and
rewards as before and Alcoholics Anonymous (AA) offers a similar approach when it helps members set
feed the craving by out to change the habits that surround their drinking. While addiction can have
inserting a new routine.” physiological aspects, AA focuses on the habit loop and seeks to “shift the routine”
when someone encounters cues that lead to drinking. If a person drinks to forget,
unwind or feel less nervous, the next step is to determine the causes of that feeling
of apprehension. AA’s solution is to replace the routine of drinking with a routine
of companionship – talking to other alcoholics about the craving and the feelings
it sparks instead of finding refuge in a bottle. AA’s approach to alcoholism has
spread to treating other addictions (food, cigarettes, drugs and gambling). AA
teaches that individuals must examine their cravings closely and determine what
drives them.
Additionally, people who wish to change their habits must embrace a belief that
“Asking patients to says they can change. For some, this has a spiritual element; for example, AA
describe what triggers incorporates God in its famous 12 steps. Anyone who wants to change a behavior
their habitual behavior needs the “capacity to believe that things will get better.” For alcoholics, that
is...awareness training,
means being confident that they can meet life’s challenges without a drink; for the
and, like AA’s insistence
Tampa Bay Buccaneers, it meant being firmly convinced that they could win
on forcing alcoholics to
under challenging conditions. This sense of belief is always more effective if it
recognize their cues, it’s
occurs in a group – such as the community of an AA meeting or of a team in the
the first step in habit
reversal training.” National Football League.
Habits That Change Other Habits

When Paul O’Neill became CEO of the Aluminum Company of America (Alcoa),
he startled its employees by focusing on workplace safety. He did so because he
recognized that organizational habits have the power to drive change. He focused
on a “keystone habit” – one that, if altered, can cascade through a firm and force
other changes in seemingly unrelated areas. He knew the “habits that matter most
are the ones that – when they start to shift – dislodge and remake other patterns.”
Organizations develop habits that help them do business or accomplish their

“Some habits have the goals. O’Neill’s focus on worker safety forced Alcoa to restructure the way it
power to start a chain worked, and that made it not just safer but also leaner and meaner. Changes in
reaction, changing other safety procedures affected all areas of its business: “Costs came down, quality
habits as they move went up and productivity skyrocketed.” Keystone habits also can have this impact
through an in individuals’ lives. For example, someone who exercises more tends to smoke
organization...Keystone and drink less, eat more healthful food and become more productive. Keystone
habits start a process
habits force “small wins”: transitional accomplishments that help people realize
that, over time,
that great successes are possible.
transforms everything.”
148
Starbucks’s rules for employees inculcate the concept of willpower, which

research identifies as the preeminent habit determining personal success. Just as
scholars achieve positive results in other areas of their lives when they practice
academic selfdiscipline, Starbucks workers improve their lives and careers after
they learn the willpower of being cheerful no matter what crops up in their
workdays. The willpower they learn to exercise is evocative of the famous
“marshmallow experiment” in which researchers told little kids that they could
have one marshmallow right away or two if they waited 15 minutes alone with the
treat in front of them. The ones who could wait proved to be more successful
“Cultures grow out of the throughout their schooling based on their “selfregulatory” skills at age four.
keystone habits in every People can learn willpower as effectively as they can learn to play a musical
organization, whether instrument or speak a foreign language, though once you master willpower, you
leaders are aware of must keep it exercised and in shape, just as you would work to keep your muscles
them or not.” toned.
Starbucks teaches employees willpower by focusing on “inflection points” –

situations that are likely to weaken their selfdiscipline (like dealing with
dissatisfied patrons). Employees practice routines for handling discontented
customers so they can perform them habitually. Fittingly, the company calls this
approach “the LATTE method.” Its steps are: “Listen, acknowledge, take action,
thank and explain.” CEO Howard Schultz also instituted a policy of giving staffers
“a sense of agency” – knowledge that the company values their opinions and
independent decisions.
“Just as choosing the Good organizational habits can grow from crises. At Rhode Island Hospital, a
right keystone habits mistake in the operating room (OR) showed that employees were using a keystone
can create amazing habit incorrectly. To avoid conflicts, nurses had flagged demanding doctors’
change, the wrong ones names with color codes; nurses knew that if a physician’s name was listed in
can create disasters.” black, they had to capitulate to that doctor’s demands without question. This led
to a crisis that ultimately spurred OR teams to develop better habits. Now teams
complete a checklist together before any procedure.
Organizational habits keep firms functioning; without them, companies would

descend into squabbling factions. These habits allow truces; Rhode Island
Hospital’s new OR checklist enables doctors and nurses to set aside any
disagreements and practice safely. Similarly, a serious fire in London’s King’s
Cross subway station in 1987 spurred the Underground’s authorities to teach
better employee habits and create a disaster plan to ensure future passenger
safety.
“A movement starts
because of the social Companies also can foretell and, in some ways, control the habits of their patrons.
habits of friendship and For example, the retailer Target carried out an analysis of consumer data to try to
the strong ties between enable them to predict when customers were expecting babies. Their “Guest ID”
close acquaintances.”
data program indicated that patrons’ shopping habits changed most dramatically
when they underwent a milestone in their lives, such as getting married, moving
to a new residence or starting a family. Expectant mothers’ shopping habits
underwent a predictable change. When that happened, Target sent them coupons
for baby items. To avoid concerns that such policies were intrusive, Target mixed
the coupons, “sandwiching” the baby discounts among other items. Similarly, the
promoters of OutKast’s song “Hey Ya” helped propel it onto the Top 40 list by
sandwiching its radio play between established hits to make “Hey Ya” seem just as
familiar to the public as those songs.
“It grows because of the Habits in Societies

habits of a community The 1950s Montgomery, Alabama, bus boycott arose in part from “social habits,”
and the weak ties that which “can change the world” when people engage in them forcefully. Dressmaker
hold neighborhoods and Rosa Parks was deeply connected to her community: She had “strong ties” to
clans together.” family and friends, and “weak ties” to her seamstress work and church
acquaintances. When police arrested her for refusing to give up her bus seat to a
white person, the black community rebelled. The Reverend Martin Luther King
Jr. and other leaders created “a feeling of ownership” in her cause to mobilize
149
black residents to boycott and join other civil rights struggles. Parks’s weak ties –
like her work for local white families – spread the movement to areas of the
community that otherwise might not have become engaged.
Similarly, a young pastor named Rick Warren built his Saddleback megachurch in
California partly on the basis of social habits. He wanted to make churchgoing
“It endures because a more social and less of a chore by teaching people “habits of faith.” He created
movement’s leaders give small, selfrun groups that met outside of Sunday services. The members read and
participants new habits studied the Bible but also were highly social. They discussed the issues they faced
that create a fresh sense daily and supported each other. The weak ties of the main congregation branched
of identity and a feeling out to minigroups with strong ties that built “selfdirecting leaders,” a
of ownership.” phenomenon of social habits.
Are People Responsible, or Are Their Habits to Blame?

Society struggles with the notion of habits and asks how much responsibility
people bear for habitual actions. Is a gambler who feels sad at home (her cue) and
who then gambles away her money (her routine) to blame if she puts her craving
for stress relief (her reward) ahead of her family’s stability? Is a man suffering the
lifelong habit of sleepwalking culpable if, in an unconscious “sleep terror” – an
affliction called “automatism” – he strangles his wife? Research suggests that if
the brain has no chance to intercede deliberately, the answer is no. A jury did
“This is how willpower acquit a man who killed his wife in his sleep, but just as creditors don’t let
becomes a habit: by gamblers escape their debts, society appears to assume that people bear some
choosing a certain responsibility for habits such as gambling.
behavior ahead of time
and then following that Given determination and belief, people can change their habits if they can
routine when an examine and analyze them to unravel understandable cues, routines and rewards.
inflection point arrives.”
About the Author

Charles Duhigg is an investigative journalist for The New York Times. His previous works include Golden
Opportunities, The Reckoning and Toxic Waters.
150
12/19/2016 The Psychology of Selling Summary | Brian Tracy
Book
The Psychology of Selling When you learn how people think and
Increase Your Sales Faster and Easier Than You Ever make buying decisions, you can use
Thought Possible that knowledge to send your sales
sky–high.
Brian Tracy
Nelson Publishers, 2005
Buy the book
Recommendation
Selling is a frustrating profession. Unfortunately, your selfesteem bears the brunt
of the unavoidable rejection that comes with the sales process. Popular sales
trainer and author Brian Tracy examines some of the basic psychology behind the
buying and selling process. He explains how your selfconcept affects your sales
performance and offers advice on boosting your selfimage. He analyzes the
reasons why people buy, going beyond the adage, "People decide emotionally and
then justify logically," into the many emotions involved in making a purchasing
decision. Tracy offers several viable tips and techniques to apply to every facet of
the sales cycle. The book is often repetitive, but perhaps the fundamentals bear
repeating. The seasoned sales professional will find some helpful details amid the
familiar overall strategy. getAbstract particularly finds that this easytoread book
provides a clear, thorough introduction for someone just beginning his or her
sales career.

• How your selfconcept affects your sales performance
• How to raise your selfesteem and join the top 20% of sales professionals
• How to use practical strategies and techniques that apply to every aspect of
the sales cycle
Take-Aways
• In sales, the 80/20 rule means that, "The top 20% of salespeople make 80%
of the money."
• Become part of the top 20% by doing just a few things a little bit better.
• The higher your selfesteem the better your sales performance.
• People make purchases based on emotion and rationalize their decisions
with logic.
• Asking questions and listening carefully to the answers is the best way to
assess your client’s needs and to tailor your sales presentation.
• The four elements of strategic selling are "specialization, differentiation,
segmentation and concentration."
151
• To begin your sales meeting, use an opening inquiry or statement that elicits
the response, "Really? How do you do that?"
• Neutralize sales resistance by using testimonials, referrals and guarantees.
• Discover your prospect’s "hot button" and focus your presentation on it.
• Successful salespeople often use "the approach close" or "the demonstration
close."
Summary
Why Sell?
Why should you become a salesperson? The sales profession can provide a high
income and lifetime job security. Once you learn how to sell, you can sell
anything. Salespeople often earn more than many other professionals including
doctors, lawyers and architects. And in sales, the sky is the limit when it comes to
“You only have to be a
income.
little bit better and
different in each of the
key result areas of The "80/20 Rule"
selling for it to When you apply the Pareto principle (also called the 80/20 rule) to sales, it turns
accumulate into an ex out that, "The top 20% of salespeople make 80% of the money, and the bottom
traordinary difference 80% only makes 20% of the money." To become a member of the top 20%, you
in income.” need to become only slightly better than your internal or external competition. A
small improvement in your sales technique can result in a huge increase in your
revenue. The best news is that the skills necessary to become a better salesperson
are not hard to learn. Those skills include:
• Identifying the needs of a potential client.

• Qualifying prospects more accurately by asking the right questions.
• Making stronger sales presentations.
• Responding more persuasively to objections and concerns.
• Using different methods for closing sales.
• Getting more referrals to increase your sales.
“Success is not an
accident. Failure is not
an accident either. In It Begins in Your Mind
fact, success is First, recognize and understand the nature of your selfconcept and its
predictable. It leaves relationship to your sales performance. "Your selfconcept is the bundle of beliefs
tracks.” that you have about yourself. It is the way you see yourself and think about
yourself in every area of your life." Your expectations are pivotal because research
shows that you cannot earn more than 10% above or below what you expect to
earn. To increase your sales, expand your selfconcept to accommodate an
expectation of reaching higher sales goals. Before you can make your new
financial goals a reality, you must envision yourself achieving them.
The better you feel about how you execute the various functions in the sales cycle,
the more you will succeed. To increase your selfesteem, use positive selftalk,
affirmations, training and motivation. Successful people pepper their inner
dialogue with upbeat, confident phrases. For example, if you repeat the phrase, "I
like myself" throughout the day, your selfesteem is sure to rise. When your self
“Once you have esteem grows, your power and ability increase along with it.
programmed a goal into
your subconscious mind,
Sales Impediments
it takes on a power of its
The two primary obstacles to making a sale are the "fear of failure" and the "fear
own.”
of rejection." Rejection is an inevitable part of sales. To cope with it, first, increase
your selfesteem and selfconcept and, second, realize that sales rejection is not
152
personal. With practice and persistence, courage can become a habit. The ability
to handle rejection without giving up is key, particularly since 80% of sales do not
close until the fifth client meeting.
Goal Setting
Set annual, monthly, weekly and even daily sales goals. Then, determine the
activities you must undertake to achieve your goals. Commit your goals to paper
to implant them in your subconscious mind. Create a clear mental picture of
“Fear and selfdoubt yourself achieving your goals. Visualize your success directly by picturing yourself
have always been the in a positive sales situation, or indirectly, by watching yourself as if you were a
greatest enemies of third party observing yourself making a successful sale. Try the "20 Idea Method"
human potential.”
of brainstorming. Write your major objective as a question, like "How can I
double my income in the next 12 months?" Then write 20 "personal, positive,
present tense" answers, such as, "I make five extra calls each day."
Why Buy?
People base buying decisions on emotion, and then rationalize their purchases
with logic. The two primary motivations for making or not making a purchase
are "desire for gain and fear of loss." The desire for gain is a quest for an
improvement of some kind. The fear of loss crops up when prospects worry about
making a mistake or getting stuck with goods or services they don’t really want.
All fruitful selling begins with a "needs analysis." To conduct this analysis, ask
“If you are in sales and
questions that uncover the customer’s main needs and desires. Then, convince
you fear rejection,
your prospect that your product or service fulfills these needs better than anything
you’ve picked the wrong
else. The human needs that motivate buying are: "money, security, being liked,
way to make a living.”
status and prestige, health and fitness, praise and recognition, leading the field,
love and companionship, personal growth, personal transformation," and "power,
influence and popularity."
Openended questions, the kind that require more than a "yesorno" answer, are
a great tool for getting your clients to talk about themselves during your needs
analysis. Openended questions often begin with such words as "what, where,
when, how, who, why and which." When you are asking your prospects questions,
you are in charge of the conversation.
The six most important words in selling are, "Spend more time with better
prospects." Ask questions at the beginning of your presentation that uncover
“Rejection has nothing to whether the person is a prospective customer. Observe the prospecting methods
do with you. Instead, it that your company’s top salespeople use and apply them to your own practice.
is like the rain or the
sunshine. It just happens Today’s salespeople position themselves as consultants, mentors or teachers.
from day to day.” Become a friend who provides solutions to your client’s problems. Remember that
people don’t buy widgets, they buy the benefits that the widgets provide. When
you are talking about your product or service, stay aware that your customer,
internally, is always asking, "What’s in it for me?" The customer’s next four
questions are what will it cost, what will he or she gain as a consequence, when
will this outcome actually happen and what guarantee are you offering?
Strategic Selling
To sell your product or service, you must thoroughly understand what you are
selling, your market and your competition. List your product’s 10 most appealing
characteristics. Then, determine why someone wants to buy it from your company
and from you, personally. Identify your "unique selling proposition," the feature
“The prospect does not
that differentiates your product.
care what your product
is. He only cares about The four elements of strategic selling are "specialization, differentiation,
what your product or
segmentation and concentration." Determine what specific benefits your product
service will do for him.”
offers. Differentiate it from the competition, when possible, in terms of price,
153
quality or even the strength of your personality. Segmentation means finding the
group that is naturally disposed to want your product. Concentrate on the
prospects who are likeliest to give you the highest return.
The point of a prospecting call is to get an appointment, not to sell your product
via the phone. Begin your sales call with a strong opening statement. Ask
questions that emphasize the benefit of your product or service. You want your
opening inquiry to elicit the response, "Really? How do you do that?" For
example, Corning Glass’s strong opening statement is, "We can provide you with
“Refuse to talk about
glass that doesn’t shatter."
your product or service,
or the price, on the When you meet oneonone with potential customers, your goal is to help them
phone; focus single feel comfortable and be attentive. You need to set their minds at ease about five
mindedly on getting a
issues. First, assure them that you have something important to say. Second,
facetoface meeting,
confirm that you are talking to the appropriate person. Third, reassure your client
nothing more.”
that the meeting will be brief. Fourth, make sure your prospects understand that
they are under no obligation to make a purchase. Last, tell the prospective clients
you will not use highpressure sales techniques.
Overcoming Resistance
Encountering resistance is normal. To neutralize sales resistance, tell your
prospects that you understand the issue behind their resistance and counter with
a statement such as, "Other people in your industry felt the same way when I first
called on them. But now they’ve become our best customers." Then, reiterate the
crucial benefit of your product or service. You can also counter resistance by
referring prospects to your satisfied customers. Testimonials, referrals and
“When you are selling in recommendations are the strongest weapons in your sales arsenal.
the home...never make a
sales presentation in the The Professional Persona
living room. People do In sales, "everything counts." The impression you make is important. Successful
not make important... salespeople project a relaxed, confident professional image. To achieve this
decisions in the living appearance and attitude:
room; they make them
in the kitchen or at the
• Dress professionally.
dining room table.”
• Be sure to be well groomed.
• Maintain good posture and be aware of your body language.
• Be sure your voice sounds strong and clear.
• Have a positive, upbeat pointofview and a cheerful demeanor.
• Make sure your clothes, grooming and hair length mirror your customer’s
appearance.
• Keep your sales material neat, organized, colorful and attractive.
• Keep your desktop organized.
• Develop a firm handshake.
“If you do what other • Be polite at all times, to everyone.
successful people do, you
will eventually get the
same results that they Preferred Presentations
do.” After you qualify a prospect, show one feature of your product at a time to
discover which benefit or "hot button" the client finds most interesting. Once you
discover the client’s hot button, focus your presentation on that. Describe
potential measurable results, such as a 10% increase in sales. If possible,
guarantee the results with offers of rebates or refunds. Interestingly, the
discussion of price often happens after the client agrees to buy. As a rule of
thumb, delay any discussion of price until the close of your presentation.
How to Close
154
Leading salespeople often use either "the approach close" or "the demonstration
“Everyone is busy. For close." In the approach close, you ask the client to make a decision after your
this reason, you should presentation. Say something like this: "Please tell me at the end of our
always expect initial conversation whether or not this product makes sense to you." You are asking the
sales resistance, even if prospect to listen with an open mind, and to give you an answer after he or she
you are offering the very has heard about your product or service. With the demonstration close, begin the
best product at the very meeting by asking the clients if they will make a purchase if you can demonstrate
best price to the most the key benefit of your product. For example, your beginning question could be,
qualified prospect in the "Mr. Prospect, if I could show you the best investment available on the market
world.” today, are you in a position to invest $5,000 right now?" Another alternative is
the "powerofsuggestion close," where you conduct your conversation based on
the assumption that the customer has already made the buy. Just say, "You’re
going to love the...service you get."
"Ten Keys to Success in Selling"

The sales professionals who make it into the top 20% practice these concepts:
• "Do what you love to do" Like your job and decide to excel.
• "Decide exactly what you want" Work from concrete objectives.
• "Back your goal with persistence and determination" Be resilient.
“Never expect people to • "Commit to lifelong learning" Knowledge has tangible value.
call you back, no matter
how honest or intelligent • "Use your time well" Work from a prioritized plan.
they sound.” • "Follow the leaders" Ask the top sellers you know for their advice.
• "Character is everything" Trust your touchstone; be authentic.
• "Unlock your inborn creativity" Find and use your "natural talent."
• "Practice the golden rule" Treat your peers and customers accordingly.
"Pay the price of success" Work diligently until you reach your goal.
About the Author

Brian Tracy is a sales trainer and speaker who has worked with more than 500 corporations. He is the author of
many books, including Focal Point, Goals! and Create Your Own Future. He produces audio and video programs
on sales, management and leadership.
155
12/18/2016 The Wisdom of Failure Summary | Laurence G. Weinzimmer and Jim McConoughey
Book
The Wisdom of Failure
How to Learn the Tough Leadership Lessons Without Great leaders learn more from failure
Paying the Price than from success.
Laurence G. Weinzimmer and Jim McConoughey
Jossey-Bass, 2012
Buy the book
Recommendation
Failure is treated unfairly. Professor of management Laurence G. Weinzimmer
and business consultant Jim McConoughey discuss leadership failure and its
repercussions as reflected in published research, a survey of managers and
interviews with business leaders. Their guide to learning from failure is
entertaining and insightful, though it does not set out to plow new ground.
getAbstract recommends this basic, easytoread manual to leaders and managers
who want to understand what worked in the past, what did not and why, so they
can benefit from their failures.

• Why it is important to learn from mistakes
• Where leaders are likely to fail and why
• How to understand and overcome the traps you are likely to encounter in
organizational life
Take-Aways
• Business leaders who do not fail are not taking enough risks, but those who
do fail must learn from it and not repeat their mistakes.
• Leaders who abandon their strategic direction risk destroying their
businesses.
• Executives need to consider the “box” – the constraints they have set for
themselves – more fully before trying to function “outside the box” in
uncharted territory.
• Effective leaders look at their organizations as part of a larger whole.
• Management failures unfold in three areas: “unbalanced orchestration,”
“drama management” and “personality issues.”
• Workplace bullying is common, but many leaders don’t see it. Covert
bullying is often more dangerous than overt bullying.
• A leader who is too eager to gain approval can damage a business as much
as a bully.
156
• Some companies are so on edge that employees feel they are at war.
Managers should foster an environment of collaboration, not competition.
• Managerial failings include hoarding authority and being destructively self
absorbed.
• Isolated or disengaged leaders should honestly assess their commitment to
their firms.
Summary
“Flawless Leadership: Learning the Lessons Without Paying the Price”

Kenneth Lay, the former chairman of Enron, and Jim Owens, the former CEO of
Caterpillar, shared similar backgrounds: Both grew up in the same generation and
with little money. Each labored hard, working numerous jobs while studying at
“A common theme
among industry’s state universities. Both earned PhDs in economics before becoming CEOs of top
greatest leaders: Their companies. However, the two had divergent leadership styles: Owens learned
most important lessons from failure, while Lay chose to ignore it. Lay’s career ended in disgrace.
have come from trial
and error.” Business leaders who do not fail are not taking enough risks. Yet failure bears a
lasting stigma in the business world. While leaders can learn more from failure
than from success, they will fall from grace if their constituencies perceive them as
bombing too often. Leaders must learn two important skills: understanding what
worked in the past and what did not, and determining why a mistake occurred so
they do not repeat it.
“Seduced by Yes: Trying to Be All Things to All People”

Leaders who abandon their strategic direction and become greedy risk destroying
their businesses; they fail in the area of “unbalanced orchestration.” LA Gear, for
“Real failure doesn’t example, became successful in the 1980s selling shoes to young women. Its
come from making business unraveled when the firm destroyed its highend cachet by selling excess
mistakes; it comes from inventory in discount stores and diversifying into selling men’s athletic shoes.
avoiding errors at all
possible cost, from the To avoid diluting your brands and blurring your targeted audience’s focus, heed
fear of taking risks to the the value you offer and the needs you fulfill for your audience instead of
inability to grow.” concentrating only on your product. Examine how a potential opportunity fits
your strategic vision before saying yes to a new idea.
“Businesses You Have No Business Being In: Roaming Outside the

Box”
One of the clichés of modern management is that managers need to “think outside
the box.” In fact, such an approach can destroy leaders’ ability to set strategic
direction. Consider the box – the constraints you’ve set for yourself – before
trying to function in uncharted territory. These constraints include your line of
“Smart people have the business, your value proposition, the market segment you serve, and so on.
ability to ‘see mistakes Netscape was a pioneer in the market for Internet browsers until founder Marc
as feedback that will Andreessen tried to diversify by developing a new Javabased language. Because
help them improve, and of that shift in focus, the Netscape browser lost its market to Microsoft’s Internet
they become expert in Explorer.
learning how to learn
from mistakes’.” Leaders must never allow their competitors to define the parameters of their
business. CocaCola made that mistake when it temporarily abandoned its
decadesold formula and launched “New Coke” in response to a Pepsi campaign.
Before experimenting outside the box, “think inside the box by evaluating your
existing activities – look first in your own backyard.” For example, Caterpillar
realized that it had developed formidable capabilities in logistics. Instead of
diluting its signature heavyequipment brand, it set up a separate business,
Caterpillar Logistics Services.
157
“Entrenched in Efficiency: Forgetting to Put Effectiveness First”

“Leadership ability... Effectiveness and efficiency are two ways of looking at work. Leaders who are
results from...following effective see their organizations as part of a larger whole – for instance, an overall
patterns of successes market. Within that context, they assess whether they are “doing things right.”
and developing skills to Leaders obsessed with efficiency, on the other hand, tend to lose sight of the
avoid failures.” bigger picture because they focus on internal operations. Webvan, an online
grocery store, and Pets.com, a website for pet supplies, were extremely efficient,
yet both failed. Customers did not want to buy their online offerings. To ensure
you are taking the right steps, concentrate on filling your customers’ needs rather
than on selling your products. Ask customers what is important to them, not just
if they are happy or not.
“The Playground in the Workplace: Leaders Who Rule by Bullying”

Bullying is rife at work. A Workplace Bullying Institute survey found that 35% of
respondents had suffered workplace bullying. You might assume that today’s
“Failure to effectively
managers are more enlightened than “oldschool” bosses, but ignoring bullying is
orchestrate a strategy
can sink the ship, a meaningful failure that falls under the heading of “drama management.” Overt
whereas successful or or covert bullying remains surprisingly common. Covert bullying is often more
chestration of a strategy dangerous because it can persist for long periods of time as the victim suffers in
can create the resilience silence with little hope of rescue.
to prosper in both good
times and bad.” Many leaders justify bullying because they believe it brings results. Coercion in
any form scares employees and makes them reluctant to discuss work or personal
problems. To stamp out bullying, let workers know that management will not
tolerate such behavior. Examine your own conduct to see if you are being
assertive or bullying. Establish protocols so people who have been bullied can
seek help.
“When Utopia Becomes Dystopia: Problems with Dysfunctional

Harmony”
A leader who is too eager to be liked or to gain approval can damage an
“Chasing dollars may organization as much as a bully who wants to be feared. A boss who seeks
work in the short run, approval or friendship above all tries to maintain the illusion that the organization
but in the long run it can is like a happy family – with no discord or discontent. Such “crowdpleasing”
destroy your ability to leaders distrust debate because it signifies discord. As a result, they tend to hire
lead strategically.” people who toe their line. Such managers hide unpleasant news from their
employees, fear giving negative feedback and solicit suggestions with no intention
of implementing them.
Anil Menon of Emory University conducted a survey to explore how companies

could use conflict productively. He found that firms whose leaders could channel
debate constructively made better decisions than those whose executives failed to
recognize the value of conflict.
Being a leader can be lonely and can involve making unpleasant decisions. In
“Another harbinger of 1995, three of the eight factory buildings at Malden Mills in Lawrence,
unbalanced orchestra Massachusetts, burned down. Malden employed 3,000 people. Aaron Feuerstein,
tion is a focus on the CEO and major shareholder, decided to continue to pay his workers even
efficiency rather than ef though his company’s revenues shrank after the fire. Feuerstein won his workers’
fectiveness.” loyalty, but the company went bankrupt. Feuerstein was too eager to be liked.
Leaders must seek respect without needing approval. Nurture a work atmosphere
that values communication, debate and transparency.
“The Battle Within: Distracted Purpose”

Some companies are so on edge that employees feel as if they work amid a
perpetual state of war. In such organizations, managers rarely intervene and then
only to make major decisions. Employees lack motivation because they have no
idea when someone is going to attack their work. This atmosphere undermines
“Bully leaders abuse the central purpose of leadership: ensuring that the whole is more than the sum of
their authority by using the parts.
158
fear to motivate Some leaders believe that compelling employees to compete against each other
employees.” brings out their best work. Yet groups within a company can often combat so
acutely that they refuse to share resources or insights, which causes the firm to
suffer. In a wellfunctioning team, employee strengths and weaknesses balance
each other. Many leaders seek this balance point, but their personal biases often
get in the way of equilibrium. Having groups work together may make sense in
certain cases and not in others. Leaders need to communicate that they want all
employees and groups to unify for the company’s benefit.
Some leaders favor certain employees, leaving other staff members aggrieved and
less willing to trust their colleagues. Or managers get so enamored of star
“If you are in a employees that they promote them above their level of competence. Leaders
leadership role and you should figure out whether they treat certain employees preferentially, and, if they
try to be liked by do, they must open parallel opportunities for other staffers. Managers need to be
everyone all of the time, aware of their staff members’ strengths and compensate for their weaknesses.
you will inevitably While creating synergy within the organization can be worthwhile, leaders must
create drama and draw up a clear set of objectives to focus the priorities of different groups as they
undercut your own work together. Managers also must ensure that employees buy into their goals.
authority and effective
ness.”
“Standing in the Way: Hoarding Power and Responsibility”
Managers also can fail in the area of “personality issues.” For example, some
supervisors are hoarders. They want to monopolize everything – authority, power
and control over minute details of how people work. When managers who suffer
these failings become leaders, they tend to micromanage rather than lead.
In 1997, Jill Barad became CEO of Mattel, the toy manufacturer. She was the first
female chief executive of a Fortune 500 company. As she climbed the corporate
ladder, she led a major product success, increasing the Barbie doll’s annual sales
“When a leader has such from $235 million to $1.5 billion. Even after she became CEO, Barad insisted on
a sense of superiority examining the smallest details – including the expressions on the dolls’ faces. She
that letting go of respon felt she was protecting the Barbie line. Her refusal to delegate fostered a sense of
sibility becomes helplessness in her employees and a lack of direction in the company. She
difficult...it is the team – resigned under pressure in 2000.
and the organization –
that suffers.” Most managers prone to hoarding have a high opinion of their capabilities and
disparage the abilities of others. Such behavior adversely affects staff members.
Employees don’t feel trusted, and highperforming stars have no reason to remain
with the organization. Other workers feel unhappy and lack motivation.
Leaders who recognize that they are hoarders can admit this failing to their
employees. They need to ask their people to help them if they exhibit signs of such
behavior. They can rebuild trust by empowering their staffers and delegating
important responsibilities to them.
“Burnouts who stay on “Living Outside the Storm: The Destructive Path of Disengagement”
the payroll too long, Leaders often isolate themselves or disengage from their organizations, with
bosses who have no serious consequences. In some cases, this happens because leaders lose interest.
interest in their jobs, and Jared Heyman built Infosurv, a successful startup. He began the venture when he
celebrity CEOs all have was 20. By the time he was 32, Heyman wanted to do all the things that he had
one thing in common: missed out on when he was younger, such as traveling around the world. His
All are disengaged from executive style had always been reclusive; he normally worked behind closed
their company’s culture.”
doors. The employees he left behind didn’t miss him when he decided to travel
extensively. With such a detached leader, when a company faces a difficult
situation, no one is at the helm. Absentee leaders also leave employees feeling
unappreciated and ready to jump ship.
Some leaders disengage because they see themselves as celebrities and become
more interested in promoting themselves than in leading the company. Carly
Fiorina’s stint at HewlettPackard shows the consequences of a celebrity leader’s
actions. She forced the amalgamation of 87 divisions into four – a step that the
corporation later had to reverse. She went against HP’s model of open
159
communication and attempted to create a topdown culture. She bought an

“It is the ability to executive jet and gave herself and other executives bonuses, while 18,000
maintain balance employees lost their jobs.
between the lessons
learned from your To avoid the perils of disengagement, honestly assess your degree of commitment.
successes and lessons Build bridges with your employees and win their trust. Even the people at the top
learned from your need honest feedback and appreciation. If the board of directors won’t offer
failures – the flip side – either, seek outside appraisal and affirmation.
that gives you the
wisdom to be a great “Problems with SelfAbsorbed Leaders”
leader.” Probably the most destructive trap that leaders face, both for themselves and for
their organizations, is selfabsorption. In some cases, celebrity leaders use their
companies to burnish their reputations. Selfabsorbed leaders are not interested
in fame – they believe that they are the greatest gift to the world since the
beginning of creation. Such leaders can be narcissistic, arrogant and blind to the
possibility that they might ever be wrong. These traits can distort decision
making; such leaders can take themselves and their organizations down
disastrous paths.
Selfabsorbed leaders share certain common characteristics: They brag, they want
“If there is one skill that to “oneup” everybody else, and they feel they know everything about everything
comes the closest to
and have no need to listen. They believe that the world owes them and that they
being the secret to
can never be wrong. Yet they’re wrong about that and much else, besides.
success as a leader, it is
balance.”
About the Authors

Laurence G. Weinzimmer is a professor of management at the Foster College of Business Administration at
Bradley University. Business development consultant Jim McConoughey is a fund manager for venture and
earlystage capital investments.
160
12/18/2016 Thinking Fast and Slow AudioBook | Daniel Kahneman
Book
Thinking, Fast and Slow “Two systems” vie for control of your
Daniel Kahneman mind, and “two selves” decide your
FSG, 2011 happiness. Can all four of you ever
Buy the book get along?
Recommendation
The topics that Nobel Prize winner Daniel Kahneman addresses are both complex
and integral to the human mind: He asks you to think about thinking by
considering how your mind habitually contradicts itself, distorts data and
misleads you. His prose is lucid, his reasoning rigorous and his honesty refreshing
– more than once Kahneman illustrates conflicted thinking with examples from
his own life. The result is a fairly slow read, but an ultimately rewarding
experience. getAbstract recommends this book to anyone interested in
neuroscience and neuroeconomics, and to all those who want to improve their
thinking about thinking.

• How your mind works “fast and slow,”
• How your “two selves” affect your perspective
• How to think better
Take-Aways
• When you think, your mind uses two cognitive systems.
• “System 1” works easily and automatically and doesn't take much effort; it
makes quick judgments based on familiar patterns.
• “System 2” takes more effort; it requires intense focus and operates
methodically.
• These two systems interact continually, but not always smoothly.
• People like to make simple stories out of complex reality. They seek causes
in random events, consider rare incidents likely and overweight the import
of their experiences.
• “Hindsight bias” causes you to distort reality by realigning your memories of
events to jibe with new information.
• “Loss aversion” and the “endowment effect” impact how you estimate
value and risk.
• Your “two selves” appraise your life experiences differently.
161
• Your “experiencing self” lives your life; your “remembering self” evaluates
your experiences, draws lessons from them and decides your future.
• These two contrasting systems and selves disprove economic theories that
say that people act rationally.
Summary
Your “Two Systems” and What They Mean

Any time you have to make sense of something, your mind applies two systems to
the question at hand.
“Although System 2 The first is “System 1,” or the mental processing that reads emotions and handles
believes itself to be your automatic skills, like driving your car or adding two plus two. System 1 takes
where the action is, the over your thinking when you comprehend simple statements (such as “complete
automatic System 1 is
the phrase ‘bread and . . .’”), instinctively turn to see where a noise is coming from
the hero of the book.”
or grimace when you see a gruesome image. System 1 supplies associated
meanings (including stereotypes) rapidly and involuntarily.
By contrast, you use “System 2” when you’re focusing on specific details, like
counting or figuring out how to complete your income tax forms. System 2 applies
effort consciously, such as when you do complicated math, try new physical
activities or search for a specific person in a crowd. System 2 thinking is slower,
but you need it for methodical thinking processes such as formal logic.
Human beings tend to value the measured System 2 while dismissing the
“The main function of mechanical System 1, but reality is much more complicated. These mental
System 1 is to maintain processes engage in a “division of labor” when it comes to thinking, and they
and update a model of constantly interact. You usually live in System 1’s world, where its fast processing
your personal world, is extremely efficient. In fact, you can be reasoning about a task in System 2, get
which represents what is tired or distracted, and find that you’ve shifted over to System 1 without realizing
normal in it.” it. If you’ve ever puzzled over an optical illusion, you’ve experienced what happens
when these two systems work at crosspurposes.
Duality and Collaboration

Which system you use and how you think depends a lot on the effort you are
expending. If you are doing something easy, like strolling on a known path, you’re
using System 1 and have a lot of cognitive capacity left for thinking. If you push
the pace to a speed walk, System 2 switches on to maintain your effort. Now try to
solve an arithmetic problem, and you’re likely to stop walking altogether; your
brain can’t handle the additional burden. Recent lab studies show that intense
“People who are
System 2 concentration lowers the body’s glucose levels. If your System 2 is busy,
‘cognitively busy’ are...
you’re more likely to stereotype, give in to temptation or consider issues only
more likely to make
selfish choices, use sexist superficially.
language and make
System 1 likes to jump on the straightforward answer, so if a seemingly correct
superficial judgments in
solution quickly appears when you face a challenge, System 1 will default to that
social situations.”
answer and cling to it, even if later information proves it wrong. System 1
performs rapid “associative activation.” Pair two words, or a word and an image,
and your mind will link them, weaving a story from those scraps of information.
In the phenomenon of “priming,” if you see the word “banana” followed by the
word “vomit,” your mind creates an instantaneous connection that causes a
physical reaction. Similarly, if exposed to the word “eat,” you will more likely
complete the sequence SO_P as “soup” rather than “soap.”
If you want to persuade people, appeal to their System 1 preference for simple,
memorable information: Use a bold font in your reports, try rhyming slogans in
“A compelling narrative your advertising and make your company’s name easy to say. These tendencies
fosters an illusion of in
162
evitability.” are markers of System 1’s larger function, which is to assemble and maintain your
view of the world. System 1 likes consistency: Seeing a car in flames stands out in
your mind. If you see a second car on fire at roughly the same spot later on,
System 1 will label it “the place where cars catch fire.”
Making Meaning, Making Mistakes

System 1 prefers the world to be linked and meaningful, so if you are dealing with
two discrete facts, it will assume that they are connected. It seeks to promote
causeandeffect explanations. Similarly, when you observe a bit of data, your
System 1 presumes that you’ve got the whole story. The “what you see is all there
“When an unpredicted is” or “WYSIATI” tendency is powerful in coloring your judgments. For example,
event occurs, we if all you have to go on is someone’s appearance, your System 1 will fill in what
immediately adjust our you don’t know – that’s the “halo effect.” For example, if an athlete is good
view of the world to
looking, you’ll assume he or she is also skilled.
accommodate the
surprise.” System 1 is also responsible for “anchoring,” in which you unconsciously tie your
thinking on a topic to information you’ve recently encountered, even if the two
have nothing to do with one another. For example, mentioning the number 10 and
then asking how many African countries belong to the United Nations will
produce lower estimates than if you mentioned 65 and asked the same question.
System 2 can magnify your mistakes, though, by finding reasons for you to
continue believing in the answers and solutions you generate. System 2 doesn’t
dispute what System 1 presents; rather, it is the “endorser” of how System 1 seeks
to categorize your world.
“Facts that challenge... The natural tendency to focus on a message’s content rather than its relevance
basic assumptions – and affects your ability to judge. People seize on vivid examples to shape their fears
thereby threaten and plans for the future. For example, media coverage of dramatic but infrequent
people’s livelihood and events like accidents and disasters – as opposed to dull but common threats like
selfesteem – are simply strokes and asthma – sets those events up as anchors that people use to make
not absorbed.” wildly inaccurate assessments about where the risks to their health lie.
People also reason incorrectly when they don’t recognize the “regression to the
mean.” Over time, everything tends to return to the average, but people create and
apply “causal interpretations” to what are, in effect, random events. For example,
if a baseball player who has a strong first year subsequently falters in his
sophomore slump, sports fans will ascribe the decline to any number of rationales
– but, in reality, the player was probably just more fortunate in his initial outings
than in later ones.
“The idea that the future Distorted Reality and Optimism

is unpredictable is Simplification is at work in the “narrative fallacy,” or the mind’s inclination
undermined every day
toward the plain, tangible and cohesive instead of the theoretical, contradictory
by the ease with which
and vague. People derive meaning from stories that emphasize individual
the past is explained.”
characteristics like virtue and skill, but discount the role of luck and statistical
factors. You will tend to “focus on a few striking events that happened rather than
on the countless events that failed to happen.” Due to “hindsight bias,” you will
distort reality by realigning your memories of events to jibe with new information.
And when telling stories about events you’re involved in, you tend to be overly
optimistic and predisposed to overvaluing your talents relative to those of others.
You also will give your knowledge greater weight than it should have.
This intense, pervasive optimism is useful for the economy in many ways because
entrepreneurs and inventors tend to start new businesses all the time,
“We are confident when notwithstanding the overwhelming odds against them. Despite knowing that
the story we tell roughly only a third of enterprises make it to their fifth anniversary, more than
ourselves comes easily to 80% of American entrepreneurs rate their ability to beat that statistic as high;
mind, with no contradic fully a third “said their chance of failing was zero.”
tion and no competing
scenario. But ease and
coherence do not Experts and Risk
163
guarantee that a belief System 1 influences how candidly people assess their own “intuition and validity,”
held with confidence is which means that not all experts always provide great counsel. Expertise relies on
true.” an individual’s skill, “feedback and practice.” For example, firefighters’ repeated
practice in weighing the risks posed by specific types of fires and their experience
in extinguishing those fires give them an impressive ability to read a situation
intuitively and identify crucial patterns. Similarly, an anesthesiologist relies on
regular, immediate medical feedback to keep a patient safe during surgery.
However, don’t put too much trust in the judgment of experts in fields where
challenges vary greatly, where luck determines success, and where too great a gap
exists between action and feedback. Those who predict stock values and political
contests, for instance, are prone to fall into this category. Because System 1 lulls
“Most of us view the experts with “quick answers to difficult questions,” their intuition may be flawed,
world as more benign but your System 2 is unable to detect those inconsistencies.
than it really is, our own
attributes as more You’re especially prone to unclear thinking when making decisions about risk and
favorable than they value. Most people are “loss averse”: You hate to lose $100 more than you like
truly are, and the goals winning $150. But financial traders tend to demonstrate less of an emotional,
we adopt as more System 1type reaction to losses. Individuals also suffer from the “endowment
achievable than they are effect”: When something belongs to you, even if only for a brief period of time, you
likely to be.” tend to overestimate its value relative to the value of things you don’t own.
Homeowners exemplify the endowment effect, often overvaluing their properties.
When you combine all this with the fact that people misjudge how likely rare
events are or, alternatively, give rare events too much weight when making
decisions, you have the foundations of the modern insurance industry. How you
frame risk shapes your evaluation of it. For example, if you hear a lifesaving
vaccine has “a 0.001% risk of permanent disability,” your reaction is much
different than it would be to the same treatment that leaves one of 100,000
individuals forever incapacitated. Yet the two are identical. When you take all
“Organizations that take these tendencies into account, it is hard to believe any economic theory based on
the word of overconfi the idea that people are rational actors. But making good decisions depends on
dent experts can expect paying attention to where your information comes from, understanding how it is
costly consequences.” framed, assessing your own confidence about it and gauging the validity of your
data sources.
“Two Selves,” One Mind

Just as two systems interact in your mind, two selves clash over the quality of your
experiences. The “experiencing self” is the part of you that lives your life; the
“remembering self” is the part that evaluates the experiences you have, draws
lessons from them and “makes decisions” about the future. For the remembering
self, happiness is not cumulative, and the final stages of any event play a critical
role in your recollection of its quality. For example, when researchers asked
“Confusing experience subjects to evaluate the life of someone who lived happily to the age of 65, relative
with the memory of it is to someone else who lived happily through 65 but was only moderately content
a compelling cognitive for another five years, the subjects rated the first life as more desirable.
illusion.”
Your remembering self’s evaluation of your life story is one part of how you judge
whether you are happy. You rate your life by standards or goals you set. The
momenttomoment assessments of your experiencing self provide the other side
of your happiness. These conclusions may conflict because they account for
different aspects of reality. Work benefits and status that affect “general job
satisfaction” do not shape people’s everyday moods at work. Instead, job context
contributes more to happiness, including such factors as chatting with coworkers
and being free from “time pressure.”
“The experiencing self The things you pay attention to have major implications for your mood. “Active
does not have a voice. forms of leisure,” like physical activity or spending time with good friends, satisfy
The remembering self is you a lot more than the “passive leisure” of, for example, watching television. You
sometimes wrong, but it
is the one that keeps
164
score and governs what can’t necessarily change your job or your disposition, but you can change what
we learn from you focus on and how you spend your time. Focus shapes your selfassessments:
experience, and it is the “Nothing in life is as important as you think it is when you are thinking about it.”
one that makes
decisions.” Your two selves are intertwined with your two mental systems: System 2
constructed your remembering self, but your tendency to weigh experiences by
their final moments and to favor “long pleasures and short pains” comes from
System 1. The relationship between your selves holds implications for
philosophers and policy makers. You would make different decisions about which
social, health and economic issues to address, and how to address them,
depending on whether you see the perspective of the remembering self or of the
experiencing self as primary.
In general, recognizing how these different mental systems work can help you
“The way to block errors realize that the purely rational beings favored by economic theory are fictional,
that originate in System and that real people need help making better judgments in their financial and life
1 is simple in principle: choices. Understanding how your mind works can help you advocate for policies
recognize the signs that that take those issues into account. The converse is also true: Because your mind
you are in a cognitive doesn’t function optimally in all instances, rules should protect people from those
minefield, slow down who would “deliberately exploit their weaknesses.” Because individuals find it
and ask for reinforce difficult to catch glitches originating in their own System 1 processing, an
ment from System 2.” organization can operate with more methodical rationality than can the separate
individuals within it.
About the Author

Daniel Kahneman, a professor emeritus at Princeton and a Nobel laureate in economics, has written
extensively on the psychology of judgment and decision making.
165
12/18/2016 True North Book Summary PDF Download | Bill George
Book
True North Is your moral compass properly
Discover Your Authentic Leadership aligned? You can't be an authentic
leader if it isn't, according to 125
Bill George and Peter Sims
leaders who are.
Wiley, 2007
Buy the book
Recommendation
Considering the intangible nature of leadership, those who read about it want to
know that those who write about it are properly experienced and credentialed. Bill
George certainly qualifies. He is a management professor at the Harvard Business
School, a member of several corporate boards, and the former chairman and CEO
of Medtronic, the medical technology stalwart. George, and writer Peter Sims, the
founder of an investment company, interviewed 125 leaders to discover what
authentic, ethical leadership is all about, what its essence is and what it requires.
This book represents the fruits of their enlightened, comprehensive research
efforts. getAbstract recommends it to anyone who leads others. George and Sims
see leadership as a quest, not a destination. This book is an excellent starting
point for your journey.

• Why the business community has experienced a severe crisis of leadership
• Why ethical leadership based on sound values is so crucial
• Why "True North," your "internal compass," must become the touchstone of
your personal leadership path
Take-Aways
• Interviews with 125 prominent leaders reveal the importance of values and
character.
• Authentic leadership depends on your “internal compass.” This is your
"True North." It guides you toward who and what you are.
• Successful companies empower leaders widely throughout their
organizations and at every level of management.
• The true leader inspires others to strive for success to achieve a shared
purpose.
• You cannot become a great leader if you cannot lead yourself.
• True north inevitably directs you to your clear purpose in life – what you
can contribute and how others will remember you.
• Great leaders do not operate in a vacuum. No leader ever achieved success
alone.
166
• You will make your greatest contributions when you are enthusiastic about
your work.
• Your true north is based on your values and deepest convictions.
• There are no "born" leaders or "instant" leaders. Leadership is not a state of
being. It is a journey.
Summary
"Testing Values under Pressure"

Jon Huntsman is the founder and chair of the Huntsman Corporation, a $13
billion firm in the chemical industry. In 1972, he went to work for the Nixon
administration, eventually joining the staff of Bob Haldeman, President Richard
“As the world becomes Nixon's powerful chief of staff and righthand man. Haldeman soon asked
ever more dangerous Huntsman to help him entrap a congressman from California who had opposed a
and our problems more Nixon initiative. Huntsman refused and shortly thereafter left the administration.
complex and dire, we
long for truly distin In 2001, due to a chemical industry recession, Huntsman's company was in big
guished leaders, men trouble. Eightyseven lenders met with him to deliver a somber message: he had
and women who deserve to put his firm into Chapter 11 bankruptcy. If he refused, they warned, they would
our respect and loyalty.” no longer ship it the supplies it needed to operate. Of course, this would have been
its death knell. But his good name and the good name of his firm meant too much
to him to let it slip into bankruptcy. It took three tough years, but he turned it
around. "I repaid every single debt," he proudly proclaims.
Huntsman has been tested at almost every stage of his life. Shortly after he
graduated from college, his mother died from breast cancer. Cancer also killed his
father and stepmother. Huntsman contracted cancer twice, but beat it both times.
Huntsman's life story is an inspiring tale, but how does it relate to the concept of
"True North"?
"True North"
“Ethically grounded
At every single crossroads, Huntsman used his internal moral compass – that is,
leadership is not only
possible, it is often the his own true north – to guide the direction he should take as a leader and a man.
most effective leadership Like the compass point, true north is your inner direction. It is who you are down
of all.” deep. It represents your most sacred values – the vital markers you use to
navigate through life. Huntsman exemplifies the most basic true north precept:
"Leadership principles are values translated into action." Always maintaining true
north, hewing to your values, is the mark of the authentic leader. Doing otherwise
is unthinkable.
In contrast, an inauthentic leader lacks values and a strong moral sense, but
nevertheless has been assigned to manage or lead others. In reality, such a person
is not a leader at all. Instead, he or she is an empty shell, an authoritarian (and
usually sad) figure who, often, leads only by using fear and rank. People may do as
inauthentic leaders instruct, but sullenly and with little or no respect.
“When you follow your A Crisis of Leadership

internal compass, your
The business world has been rocked to its foundations by numerous highprofile
leadership will be
scandals. Who has been responsible? The answer is clear: narcissistic, powermad
authentic, and people
CEOs and other senior executives who prioritize their personal, financial and
will naturally want to
egotistical interests. And, while they were up to their slimy shenanigans, too many
associate with you.”
board members placidly looked on and did nothing. Pleased with their lucrative
directorships, many board members have been unwilling to rock the boat. The
world of politics also seems to be disgraced routinely by those who abuse the
public trust. On a daily basis, florid headlines tell stories of politicians who have
been forced to resign, or convicted and jailed because of their own severe ethical
167
lapses. The fact is that contemporary society has been burdened with far too many
inauthentic leaders. These individuals apparently do not possess internal moral
compasses – that is, true north guidance – to point them to the proper, ethical
paths.
“Character without Like Jon Huntsman, authentic leaders always draw upon their personal ethics,
capacity usually means morality and basic sense of right and wrong as they lead others. Indeed, they find
weakness in a leader, that their strong ethical base represents the sine qua non of leadership. Of course,
but capacity without authentic leaders must also be smart and capable. But even more, they need
character means special inner qualities: high principles, ideals, values and morals. How else can
danger.” (David Gergen) they inspire others? After all, that is what leadership is all about.
This is certainly true at Starbucks. Founder Howard Schultz is proud that

Starbucks is now the first U.S. company to make healthcare coverage available
for parttime employees who work 20 hours or less. Schultz calls this a
"transforming event" for his firm.
Individual Life Stories Often Define Leadership

Many authentic leaders, such as Huntsman and Schultz, find that their leadership
approach emerges from challenging experiences, which help them understand
who they are and which principles define them. As they manage difficult events,
“Boards of directors these leaders "unleash their passions" and "discover the purpose of their
frequently choose leadership." Five dimensions mark the authentic leader:
leaders for their
charisma instead of their 1. "Purpose with passion" – True leaders always bring passion to their roles.
character, their style Conversely, employing passion without purpose often results in narcissism
rather than their and egotism. Passion defines the life and work of Ellen Breyer, CEO at
substance and their Hazelden Foundation, which helps people overcome chemical dependencies.
image instead of their At the end of the 1960s, Breyer was a passionate demonstrator against the
integrity.” Vietnam War and in support of civil rights. She now leads Hazelden with the
same passion that impelled her activism decades ago.
2. "Practicing solid values" – A person who attempts to lead without values is
no leader. He or she is merely a person with authority. Supposed "leaders"
who espouse high values, but fail to honor them, invariably lose the
confidence of their subordinates.
3. "Leading with heart" – Heartless leaders inspires no one. They often depend
on instilling fear in others to get them to follow. Otherwise, no one would
comply.
4. "Establishing connected relationships" – Leaders must be able to develop
truly meaningful personal relationships with their subordinates. Dick
“Leaders are highly
Kovacevich, the chairman and CEO of San Francisco's Wells Fargo Bank,
complex human beings,
believes in and trusts the members of his executive team. His background as
people who have
captain of his school's baseball team and as quarterback of its football team
distinctive qualities that
taught him to give his players the latitude they need to win. "On the athletic
cannot be sufficiently
described by lists or field, I learned that a group of people can perform so much better as a team
traits of characteristics.” than as the sum of their individual talents," he explains. "If you were
quarterback for a team of quarterbacks, you would lose every game."
5. "Demonstrating selfdiscipline" – Authentic leaders set high standards for
themselves and their employees. They use all of their internal resources, and
the full resources of their organizations, to achieve important goals.
Consider Nelson Mandela, the inspirational leader of South Africa's anti
apartheid movement. Mandela spent 27 years in jail, but never lost heart.
He maintained a positive attitude and disciplined spirit. Released at 71,
Mandela resumed his civil rights work. Four years later he became president
of a reformed South Africa.
“If you want to be a "Knowing Your Authentic Self"

leader, you've got to flip
that switch and
168
understand that it's "Know thyself" is a required mantra for an authentic leader. Build your self
about serving the folks awareness by regularly testing yourself, and your key values and beliefs, in the
on your team.” cauldron of "realworld experiences." This is often difficult and painful, but life
ultimately is about making tough choices. For the authentic leader that means the
right choices. You cannot be an authentic leader if you are unwilling to stick to
your individual principles.
"Practicing Your Values and Principles"

The concept of adhering to your core beliefs is crucial. First, define these internal
qualities:
• "Values" – This concerns what is most important in your life, what you hold
dear. For Reatha Clark King, president of the General Mills Foundation, this
“Each of us possesses a means giving people increased opportunities to improve themselves and
moral GPS, a compass their lives. This goal has particular relevance to King, who earned $3 daily
or conscience as a child laborer in the cotton fields of Georgia.
programmed by • "Leadership principles" – These are the standards you rely upon to lead
parents, teachers, others. They directly relate to your values.
coaches, grandparents,
clergy, friends and • "Ethical boundaries" – These are the limits you place on your actions, based
peers.” on your personal moral standards.
"What Motivates You to Be a Leader?"

Leadership can be a difficult path. You must be fully motivated before embarking
on this journey. If all you want is money and power, you'll be in trouble. Set your
sights higher. Plan to make a "difference in the world."
This is something Dan Vasella, chairman and CEO of the giant drug company
Novartis, has been able to accomplish. Vasella suffered from numerous serious
illnesses as a child. His older sister died from cancer at the age of 18. A few years
later, his father died during surgery. Vasella became a physician to fight illness,
and then went to work as an executive in the pharmaceuticals industry.
“No one can be authentic
by trying to be like He quickly moved up the corporate ladder, eventually becoming Novartis' CEO.
someone else.”
Through Vasella's enlightened leadership, Novartis now develops lifesaving
drugs that people all over the world rely upon daily to maintain their health and
the quality of their lives.
"Building Your Support Team"

No leader ever achieved a set of planned objectives alone. You need a "support
team" that will provide you with objective feedback and emotional support, and
will help you keep moving ahead. Your support team may consist of colleagues,
friends, family or mentors.
"Staying Grounded: Integrating Your Life"

“Authentic leaders lead
Leading always involves a high degree of stress. This internal pressure will put
with their hearts as well
you in an early grave unless you learn how to cope with it. Stay grounded and fully
as their heads.”
integrate all aspects of your life – personal, professional, religious and so on. Most
important: Always "find time for yourself." Failing to do so will certainly produce
burnout.
Are You Ready for the Challenge of Leadership?

Are you in touch with your most cherished values and beliefs? Is your true north
properly aligned and working? If so, you are ready to step up and lead. Is this an
awesome undertaking? Not really. Indeed, leading others, at the most basic level,
is a fairly straightforward process. Just get in front and do it! In short, anyone can
lead – any time.
“Leadership is a journey, The concept of the born leader is a myth. Any individual can be a leader. It simply
not a destination. It is a takes courage, vision and – most important – a strong ethical base.
169
marathon not a sprint. It Take a look at what Oprah Winfrey has been able to accomplish in her life. Born
is a process not an into poverty in Mississippi, Winfrey decided as a small child that she would
outcome.” advance in life. Her journey was anything but easy. It included being raped by a
cousin and sexually molested by family members. But despite these and other
setbacks, Winfrey was determined to succeed, and did. Winfrey is now one of the
media's brightest, most successful stars. She dedicates her life in part to
empowering others, particularly younger women.
Remember that there is no time like the present. Look around you. Things need
changing – and deep down, you know how to change them. So do so. Become the
leader you always were meant to be. Don't "wait for a tap on the shoulder." Time
is fleeting.
No matter whether you are a lowlevel or middle manager, you can become a vital
“It is never too late...or leader within your organization. Everyone has to start somewhere, and every
too soon to step up to journey begins with the first step.
leadership.”
If you want to become a leader, then lead. Just as there never is a perfect time to
become a leader, there never is a bad time either. Wendy Kopp proved this at age
21. After graduating from Princeton, she founded Teach for America to upgrade
the K12 educational system in the U.S. The program has developed 10,000
teachers, and six of every 10 of them is still in education.
"Embrace Your True North"

Are you ready to become an authentic leader? Then fully embrace your true north.
You cannot succeed as a leader without taking that step. True north establishes
your authenticity and inspires others to follow your lead. Remember: Leadership
“Eighty percent of is a neverending quest. It means taking one step, and then another, and another,
success is showing up.” moving inexorably ahead to achieve your important goals. So, are you headed in
the right direction? You are if your true north is guiding you. It is your essential
touchstone for leadership success.
About the Authors

Bill George is a professor at the Harvard School of Business. He has extensive executive experience, including
serving as a CEO and as a board member for numerous corporations. Coauthor Peter Sims, a Stanford M.B.A.,
cofounded an investment firm.
170
12/19/2016 What They Don’t Teach You at Harvard Business School Summary | Mark H. McCormack
Book
What They Don’t Teach You at You have your education; you got your
Harvard Business School M.B.A. Now, here’s what you really
need to know to sell, negotiate and
Mark H. McCormack communicate.
Profile Books, 1994
Buy the book
Recommendation
In this book, Mark H. McCormack draws on his experience as the head of a sports
management company to provide some tips and techniques for selling,
negotiating and managing. He presents a series of howtos and recommendations,
followed by several examples. The result is a wellorganized guidebook to
achieving success. The book’s easytoread, breezy style and McCormack’s
personal touches make it an engaging and fun read. However, while the book
claims to offer secrets and information that are usually not taught in school, most
experienced businesspeople in any of the fields he mentions will be familiar with
much of his guidance. It does mirror material that is widely covered in other
books on the same topics. Still, McCormack’s book is a classic written in an
interesting way, and his opinions and experiences contribute to its appeal.
getAbstract recommends it to recent graduates, and others in sales and
negotiations who seek some reallife expert advice outside the ivycovered walls of
academia.

• What you need to know in business that you didn’t learn in school (even at
Harvard)
• How to excel at selling
• How to negotiate successfully
• How to communicate effectively
Take-Aways
• Apart from your college education, you need to be streetsmart to sell,
negotiate and manage well.
• Old customers can be the best customers. The ideal time to sell something is
when the buyer has already said yes to something else you’ve offered.
• Giving away a product or service for free can get you in the door.
• A long silence can be significant in a tense negotiation session. Try not to be
the one to break it.
• Walk away from a deal rather than abandoning your principles.
• Sometimes it can be critical to show up in person rather than sending a
memo or making a call.
171
• Find ways to help others accept and embrace ideas regardless of where they
originated.
• In written or verbal communication, be clear and concise.
• Don’t be afraid to admit that you don’t know something.
• Imagine yourself like a product. Use personal marketing. Think about how
you would position yourself.
Summary
Secrets of Successful Selling

Many salespeople will gladly give advice on how selling works. A typical lesson on
selling would be: “Know your product. See a lot of people. Ask everyone to buy.
Use common sense.” Great tips – but they need some tweaking to fit today’s
“The goal of any thriving globalized, competitive economy:
organization is to stay
lean rather than fat; 1. Know your product...and your industry – Your customers will
hungry rather than compare prices before they buy, so you should know your competition. Also,
satisfied.” just knowing your product won’t suffice; you need to believe in it as well.
2. See a lot of people...who are likely to buy – Beyond just knowing a lot
of people, you should know the right ones.
3. Ask everyone to buy...at the right time – You should ask people to
buy, but you shouldn’t be too obtrusive. Give your customers space. Let
them think that buying from you was their idea in the first place.
4. Use common sense. Period. – Beware: Overconfidence can kill common
sense. Don’t brag too much about a success.
“If your idea is good, “Supersalespeople” have a few more tricks of the trade. One is to “knock on old
you don’t need charts doors.” Realize that existing customers can be the most promising prospects. They
and visual aids to sell it. have bought from you before; if they were satisfied, they will be inclined to buy
If your idea is bad, all more. Also, a supersalesperson knows to bring new information or ideas to each
the bells and whistles in additional sales call. If you are a car dealer, you don’t take prospects on a second
the world won’t improve test drive; instead, the second time, you offer them a finance plan.
it.” Supersalespeople “backpedal aggressively” when the time is not right for selling.
Sometimes offering to do something for free is a way to get in the door. Prospects
can’t refuse a free offer on the grounds that they have no budget. Then, if you do a
good job, they may pay you well for what you have done or you can seek a paid
arrangement in the future.
Remember who you are dealing with, and show respect for your clients and their
products. One salesperson got the cold shoulder after sending a proposal to
Federal Express – via DHL. Businesspeople are sensitive to any clue that shows a
preference for their competitors; at a business lunch with a Coke executive, don’t
“There’s nothing more order a Pepsi.
refreshing than a
salesperson who Many people overlook the importance of buying in the sales equation. Recognize
honestly says, ‘This is the leverage you have as a buyer, such as the size of your order, whether you are
probably not right for paying cash and whether your order could be the beginning of a longterm
you. Let’s defer it for relationship. Use your leverage before the sale goes through to negotiate the best
another time’.” terms. Its effectiveness decreases dramatically after you have paid your money.
Having or obtaining the right information is half the battle. Ask questions even if
you already know the answers to see if your customer might reveal new
information. The more information you share, the more likely people are to
reciprocate. Remember that people become chattier when they are farther away
172
from their offices. Requesting information they shouldn’t give you will teach you a
lot about their trustworthiness. Don’t hesitate to ask for numbers. If they are not
ready to discuss dollar amounts with you, they are probably not ready to buy.
“It is better to
overwhelm than The Secrets of Good Negotiating
underwhelm a
Negotiation skills won’t come to you overnight. They require hard work. The five
prospective client.”
basic techniques of negotiating you need to practice again and again are:
1. “Silence” – A long silence can be of major significance in a tense

negotiation session. Try not to break it no matter how uncomfortable it
makes you feel.
2. “Patience” – Sometimes, doing nothing is the most effective strategy in a
negotiation. Just the passage of time can change the circumstances. So sit it
out until people calm down, problems resolve on their own and new ideas
pop up.
3. “Sensitivity” – Be aware of the other person’s perspective, needs and
“Like the advertising
wants.
agent...who drives one
client’s cars, brushes 4. “Curiosity” – You can learn a lot about people by observing them,
with another account’s especially outside their professional environment.
tooth paste and uses 5. “Showing up” – Make a point of meeting people in person rather than
another account’s calling or sending a memo, “nothing is more flattering.”
laundry detergent, being
hypersensitive to a When you have second thoughts about a deal, wait a while. Trying to seem
client’s whims...is
decisive when you are not will cause you to make bad decisions.
becoming second nature
for us.” The more information you gain, the more power you have in a negotiation. People
like talking about themselves, so encourage them to do so. If they ask you
questions you can’t or don’t want to answer, move to a different subject (possibly
with humor). You can also change or praise the question, and then provide the
information you want to supply or ask a question yourself.
At times, you can gain advantage from starting to work with the other party before
you have a final contract. Haggling over details can take a while and the other
person may change his or her mind. Plus, being in a cooperative process can give
you an edge in negotiating, since your client or customer may now have more to
lose if the deal doesn’t go through.
“While I have always
believed that the
Money is certainly important, but noneconomic factors are critical, too. For
contents are more
example, if your company brings great quality or prestige to the table, many
important than the
people will be willing to give up money in return for a boost in their reputation.
packaging, that’s
Think longterm. Respect a company’s traditions and keep a deal confidential
meaningless if the
desired consumer is before it closes. Leaking information, particularly to the press, can kill a
turned off by the negotiation.
package.”
The ideal outcome for a negotiation is a winwin situation where both parties feel
satisfied. Sometimes one party is much more satisfied than the other. In a
“mediocre” deal, both parties are satisfied, but not very much. Such deals may
have unexpected consequences. For example, if people agree to a price even
though they strongly feel their services are worth more, the quality of that service
might decline. They may not even be conscious of rendering less effective work. If
you end up with a mediocre deal, let the other party know that you are not entirely
happy. But remember that a mediocre deal can lead to much better future
business.
“You’re always better off If the price isn’t good enough and you have no chance of getting a better deal in
understating your the future, walk away. Don’t throw good money after bad. Also don’t hesitate to
ability to deliver and leave the table if you simply cannot offer what the clients want or if they ask you
overdelivering on what to abandon your core values or principles. That might bring shortterm success,
you stated. If you can’t but it can hurt you in the future. Walking away does not necessarily mean that you
do that, walk away.” can never go back. Wait a few months and try again.
173
The Secrets of Successful Managing

Startup entrepreneurs generally go through three phases. In the first phase,
income is very critical. In phase two, entrepreneurs are increasingly concerned
with cutting costs to make a profit. Finally, in phase three, they start “managing
cash” by reinvesting the money in their companies to make them more valuable.
That is what Ted Turner was referring to when he said, “I’ve never been too
concerned with building profits. My goal is to build value.” Building value often
means growth. However, an expansion should make sense for your company and
should actually be profitable. Generate a lot of ideas. A tendency to reject ideas
“The art of salesmanship that weren’t your own is not helpful. Get rid of that attitude within yourself and
is telling the customers your people. Be open to new possibilities, and be creative in finding ways to help
what they want to hear. others accept and follow through with good ideas.
The art of customership
is hearing the salesman’s As a manager, you will face two types of people in your organization: heroes and
pitch and getting it winners. The heroes are highly visible, and tend to get recognition. The winners
down on paper.” are the people who do an excellent job behind the scenes. Don’t forget about
them. Work hard to motivate and recognize the winners. The people who do the
glamorous jobs are more visible, but inside experts are critical for a company’s
success.
If you need to fire someone, prepare everything for a smooth transition afterward.
That may mean alerting customers or assigning additional responsibility to
someone else before the dismissal. Be generous with people who are leaving;
maybe even help them find new jobs. If you treat them fairly during the
termination, they won’t talk badly about your company after they leave.
“Once people dig in their Corporate culture can be a valuable motivator. After a presentation on corporate
heels on a position, no culture, one CEO turned to his assistant and said, “The corporate culture stuff is
amount of spade work great. I want one by Monday.” Corporate culture can help your company become
will get them out. You’re
great. If you want to “get one,” communicate to prospective employees that your
not really negotiating
company is world class and expects outstanding performance; encourage team
anymore; you’re finding
work; have prospective leaders work at lower levels so they really get to know the
a way for them to save
company; ensure that your employees know where the company is heading;
face.”
quantify your goals; have clear corporate values and honor them; tell your
company’s story to emphasize its class and values; and define corporate role
models.
As a manager, you will have to hire, retain and fire employees. Try to find the best
people. If they are more qualified than you are, that’s even better. Don’t let self
consciousness trick you into hiring anyone but the bestsuited candidates. To keep
them, make sure you place them in the right jobs, pay them what they are worth,
give them their own projects and provide regular feedback. Be sensitive about
your employees. Read the handwriting on the wall; no one leaves without giving
“Two factors – timing you subtle clues beforehand.
and the individual’s
loyalty to our company As a boss, focus on “adding value,” including bringing out the best in your people,
– determine everything rather than exercising your power. Always ask yourself if you need to be involved
that follows once I – if not, let your staff members do the job by themselves. Teach them how to do it
decide to let someone or how to do it better, and then leave them to it. There’s a difference between
go.” “being the boss and being bossy.” Recognize your own areas of expertise, avoid
inefficiencies, be a good example and provide people with clear objectives.
“Getting Ahead”
Imagine yourself as a product. Then think about how you would position yourself.
Would you be high or lowpriced? Firsttomarket or a longrange seller?
Practical or stylish? Apply the principles of marketing to yourself and use them to
get ahead. Be aware of your weaknesses, but not proud of them. Nurture these
crucial traits in yourself: “honesty and integrity, mental toughness, stubbornness,
thoughtfulness” and “maturity.”
“The longer the letter,
the less likely it will be “Getting Organized”
174
answered.” It doesn’t matter what time management system you use as long as you use one.
Always schedule free time in case something unforeseen happens. Plan ahead and
respect others’ busy schedules as well. Make notes of every conversation you have.
If you are going to talk to someone on the phone, take a minute before you call to
focus on what you want to say.
“Communicating”
If you are sending a letter or memo, obey the basic rules of good writing: Organize
your message. Use bullet points if appropriate. Don’t confuse your reader with
complicated sentences. Keep them short and simple. Don’t hide your message
“Short words, short between the lines or make your reader guess. Say what you want to say in plain
sentences, short words. This is true for verbal communication as well. Avoid overinterpreting the
paragraphs work. Trust other person’s body language; instead, rely on better clues such as exact phrasing
me.” (“I might like to do that.” versus “I would really like to do that.”) or how much
time the other person dedicates to the conversation.
About the Author

Mark H. McCormack is the author of the classic What They Don’t Teach You at Harvard Business School,
published in 1984. He is also the founder and chairman of a sports management company that represents top
athletes, including golfers Arnold Palmer, Gary Player and Jack Nicklaus.
175
12/18/2016 Working With Emotional Intelligence PDF | Daniel Goleman
Book
Working With Emotional Emotions convey lessons you – and
Intelligence your organization – need to know.
First step: self-awareness, for you
Daniel Goleman and the company.
Bantam, 2000
First Edition: 1998
Buy the book
Recommendation
Author Daniel Goleman applies the rules of "emotional intelligence" to the
workplace. Being intelligent counts in the world of business, but the interpersonal
smarts referred to as "emotional competencies" count even more. Goleman, who
wrote the seminal book Emotional Intelligence, underscores his conclusion with
numerous studies and anecdotes, showing that those who have "people skills" are
likelier to succeed. Skills that help teams collaborate are increasingly important as
coalition building emerges as the model for getting things done. Goleman includes
thorough guidelines for implementing effective "EQ" training programs.
Companies that train managers in "emotional competencies" reap concrete
business benefits: increased sales, more seamless teamwork, and constant
improvement based on analysis and feedback. getAbstract highly recommends
this wellwritten book on how understanding feelings adds to your bottom line.

• Why "emotional intelligence" is crucial to leaders, teams and organizations
• How to improve your company's "EQ" and your own
Take-Aways
• As your career advances, interpersonal skills matter more than cognitive
skills.
• Luckily, unlike cognitive skills, you can improve your "emotional
competencies."
• To improve your "empathy," the core attribute of emotional skill, learn to
listen.
• Emotional awareness is honed during downtime, and yet you must be able
to draw upon it in a pinch. Take time to develop it.
• Understanding your own feelings improves your ability to understand
others' feelings. It sharpens your "radar."
• Be aware that in some cases too much empathy is inappropriate.
• "Feedback" is essential when you are trying to change ingrained habits.
Keep track of your progress as you improve your emotional skills.
176
• Moods are catching, so try to spread a good one. Understand what affects
your mood.
• Many characteristics that help individuals succeed are also important for
organizations, such as reliability, openess and emotional sensitivity.
• "Emotionally intelligent" organizations value the bottom line contribution of
employees who practice "soft people skills."
Summary
People Who Like People

Managers today worry about losing their jobs – and with good reason. The days of
working 30 years for one company and then retiring are done. An advanced
“Emotional awareness degree and technical knowhow do not guarantee that you will keep your job.
starts with attunement Evidence reveals that today's employers seek new hires who have better listening
to the stream of feeling skills, who accept criticism well, whose personalities exhibit overall situational
that is a constant flexibility and who are selfdirected. Companies now need employees with "people
presence in all of us and skills." In the modern workforce, "emotional intelligence" or "EQ," offers a more
with a recognition of complete measure of professional success than IQ. Many studies show that IQ
how these emotions
without an emotional component is not enough for success. But, in contrast to
shape what we perceive,
cognitive intellect, you can improve your emotional intelligence.
think and do.”
The emotional competencies necessary for success include the ability to selfstart,
grasp personalitybased politics and get along with others. Companies prize these
skills more than knowhow. Studies probing different angles of what you need to
be a "top performer" all yield the same startling result: most companies feel that
interpersonal skills are more important to job excellence than intellectual ability
or technical understanding, in fact, they are twice as important. "Emotional
competence" is a particularly crucial component of leadership.
“From that awareness
comes another: that our Go with Your Gut
feelings affect those we Aside from talent and expertise, to excel you need such emotional skills as self
deal with.” knowledge, the ability to manage your feelings, concern for others, social
adroitness, enthusiasm and commitment. Developing "rapport" requires gaining
trust, the key to influencing others and getting your goals approved. These
emotional intelligence competencies are the basis of strong leadership skills.
Emotional strength enhances decision making. Heed your intuition. Those vague
feelings about the right thing to do in a given situation provide a wealth of input
you should weigh. Your feelings add dimension to your choices. People who are
aware of their feelings and their impact show more empathy. How can you
“People gravitate to improve your selfawareness? One way is to keep a journal of behaviors you want
what gives them to change, so you can analyze them later for clues about what sets off your
meaning, to what ingrained emotional patterns. For example, record the moments when you get
engages...their irritable or say something you regret to develop a list you can use to identify
commitment, talent, conditions or situations that provoke you, so you approach them with more self
energy and skill. That awareness in the future.
can mean changing jobs
to get a better fit with Unless you allow space in your life to listen to your emotions, you cannot develop
what matters to us.” your awareness of the nuances of your inner emotional "radar." Emotions evolve
in a different time frame and do not respond to deadlines. They are not available
on demand. You must cultivate the space for emotional awareness, tune into it
and explore it to get to know it. That requires downtime for quiet contemplation
of your emotional reactions.
Selfconfidence resonates with others; it inspires trust. Those who lack confidence
find it hard to make tough decisions in the face of unknown variables, especially
decisions that contradict the prevailing view. Selfconfidence stokes courage and
177
risk taking. An AT&T study showed that midlevel executives with a strong belief
“These times call for... in their skills from the beginning of their careers had greater success. A study that
adaptability. Stars in followed people over their lifetimes found that those with more childhood self
this competence relish confidence reap greater professional rewards as adults.
change and find exhila
ration in innovation. The Flow of Information
They are open to new The brain's cognitive and emotional centers sometimes work at odds with each
information and...can let
other. Under stress, the brain's emotional center switches into the emergency
go of old assumptions,
response mode and siphons off resources your mind usually devotes to cognition.
and so adapt how they
This happens when people suffer "stage fright" and fear overwhelms the brain's
operate.”
ability to recall what they were supposed to do.
Too much sensory stimulation, an overload of information flooding in at once,

destroys the mind's ability to focus and stresses the body into perpetual
emergency survival mode. Being able to activate your emotional restraint is
crucial for performing under stress, not only for the benefit of remaining
diplomatic even when you're angry, but also for the ability to concentrate despite
"distractions." Of course, you should remain aware of your emotions, and even
use them to reach your goals. However, allowing emotion to override your ability
“The more accurately we
to function rationally leads only to negative consequences. Don't let anger and
can monitor our
emotional upsets, the fear derail you.
sooner we can recover
Business success demands a steady attitude and a dependable manner. You must
from distress...
adjust calmly to unforeseen changes and remain emotionally open. In the work
Emotional clarity, it
seems, enables us to world, you cannot let a passing state of mind dictate your actions. To maintain the
manage bad moods.” serenity you need for work, cultivate strategies for coping with stress. To make
those around you feel confident about you, be sure they always know where you
stand. Act transparently and ethically. If you're scrupulous, even if you make a
mistake, others will trust you to admit it and try to fix it.
Change is a fact, especially in business. It requires the ability to acclimatize to

meet constantly shifting demands, and to entertain new ideas and novel
approaches to old problems. Creativity is really just daydreaming unless you add
the "emotional competencies" to present new ideas to others and ask for their
“Influence entails support.
handling emotions
Work that combines a sense of challenge and creativity, work you love, makes it
effectively in other
people...Star performers easy to become so absorbed that you lose track of time, achieving a state of "flow."
are artful at sending This focuses all of your senses in the service of your work. Inspiring work
emotional signals, which energizes you to do your best and makes the labor seem almost effortless. Such
makes them powerful motivation is important for peak performance. Employers prize this level of
communicators, able to dedication, "drive to achieve," optimism, quest for constant improvement and
sway an audience – in ability to selfstart. Employees who feel their company's values align with their
short, leaders.” own come closest to this level of commitment, which breeds loyalty and trust. An
optimistic attitude can make a real difference in how workers view reversals,
either as opportunities to learn from their errors or as devastating obstacles.
Strengthening Ties
One triedandtrue strategy for increasing sales is to put yourself in your
customer's shoes and figure out what you can suggest to improve his or her
business. This ability to intuit the feelings of others by picking up subtle clues
about their personalities, likes and dislikes from their behavior or vocal
“Just one cognitive
mannerisms is called "empathy." The inability to empathize indicates a
ability distinguished star
concomitant lack of social grace. Empathy is an essential building block in the
performers from
social skills necessary for business. Sensitivity to others' needs underlies the
average: pattern
ability to provide good service, be a mentor and navigate diverse, and sometimes
recognition, the ’big
picture’ thinking that conflicting, workplace personalities.
allows others to pick out
Develop greater empathy by consciously improving your listening skills. This has
the meaningful trends
a bonus: If you are a good listener, people will want to tell you more. However, as
from the welter of
information around crucial as it is to be sensitive to others' feelings and wishes, to get your employees
178
them and to think strate to improve, you must be able to give them constructive, objective feedback.
gically far into the Sometimes too much empathy can be a drawback, particularly if you must make a
future.” decision without regard to emotional fallout. However, optimal productivity
requires strong interpersonal relationships, which you may devastate if you do not
pay enough attention to the emotional impact of your decisions. This balancing
act requires sensitivity to everyone's needs.
Knowing how to respect the differences among people in today's culturally diverse
workforce, while pulling everyone together as a team, is a crucial management
skill. If you create an atmosphere of respect for each person's skills and encourage
assorted perspectives, your team members' differences can lead to unexpected
“While...relevant "opportunities." Whether you are aware of your impact or not, your attitudes,
technical expertise is feelings and expectations influence those around you. Try to become aware.
vital to generating Understanding and evaluating others' feelings underlies all negotiations. The
innovative ideas, when it easiest way to persuade others is to start from their desires and expectations, as
comes to putting those you see them. Getting what you want requires building an emotional connection
ideas to practical use, to those you wish to direct or persuade.
navigating the web of
influence that permeates Part of strengthening your empathy is developing the ability to set aside
an organization makes distracting thoughts and emotions, so you are fully present for the situation at
all the difference.” hand. Marshalling your feelings is crucial to interpreting the underlying politics of
any situation you seek to influence.
Following the Leader

Many people are adept at the "social skills" needed to advance, yet they falter
because they don't remain open to those they supervise. Subordinates follow
leaders, but not just to serve business goals. People follow a leader's style, energy
level and emotional approach. When leaders convey loyalty to the firm and
“The art of maximizing optimism about it, workers resonate to that message.
intellectual capital lies in
orchestrating the inter If you use your listening skills, empathy and sensitivity to understand other
actions of the people people's fears, you will develop the tact you need to be a leader, especially in tough
whose minds hold that times. People are inspired to excel when they see clearly that the leader values
knowledge and their individual contributions. Leaders' emotional intelligence translates to
expertise.” organizational EQ. Often that attribute attracts clients, even more than brains or
track record. Once again, the skills that create empathy – active listening and
seeing a situation from another's point of view – are vital.
Emotionally Intelligent Networks

Networks that harness the creativity and intellectual power of groups are
increasingly important. When a team performs with "EQ," the results are better
than managers might forecast just based on the individual abilities of the team
members. Identifying what you might have in common with another team
“Understanding
member is an important first step in building and maintaining rapport. In time,
someone's point of view
such connections result in a network of interpersonal relationships that extend
or perspective –
your potential influence beyond the limits of your individual reach.
knowing why they feel
as they do – does not In the past, star employees were rewarded more than good team players. That is
inevitably mean
changing as businesses realize significant bottomline results based on working
embracing it.”
teams. A loose confederation of team members, including supervisors, tends to
work better than a traditional authoritarian structure. Team rules that emphasize
respect and openness engender solidarity, creativity and goaldriven consensus.
An adept team leader should model confidence, openness to new ideas and
eagerness to analyze feedback to improve the team's results.
Bolstering Your EQ
As you mature, so does your radar for sensing the emotional dimension in your
“Beyond zero tolerance interactions. You can enhance your ability in this area with practice, but you must
for intolerance, the be willing to change old habits. That requires awareness of your ingrained
ability to leverage feelings, responses and behaviors. It means developing a plan to replace an old
diversity revolves
179
around three skills: habit with a new one, as well as committing to being patient and allocating time to
getting along well with let a new behavior take hold. Focus on one realistic goal at a time. To measure
people who are different, your progress, develop a plan that includes feedback. This provides the objective
appreciating the unique assessment you need to adjust your behavior. Scrutinize and challenge
ways others may interactions that don't work to ascertain the underlying presumptions they might
operate, and seizing reveal.
whatever business
opportunity these unique Only those organizations that appreciate people skills and value relationship
approaches might offer.” based programs, such as mentoring, will reap the benefits of "emotional
intelligence." Too often peopletopeople skills, and the time it takes to develop
them, are under appreciated.
Beware of the bad habits of emotionally clueless organizations. They give their
people too much to do. They micromanage subordinates. They don't show enough
employee appreciation, a problem that is reflected in a lack of positive feedback,
career opportunities and fair pay. Indifference to creating a workplace
"community," or blithe oblivion to unfair or unethical company practices, erodes
“Persuasion is lubricated employees' confidence in the organization. To improve overall functioning and
by identifying a bond or reap the rewards of emotional intelligence, implement policies that improve your
commonality; taking organization's selfawareness. Companies must become sensitive to providing the
time to establish one is intangible benefits people need to connect their personal values to their jobs.
not a detour but an
"Collaboration," honest communication and attention to basic human emotional
essential step.”
needs, such as respect, will go a long way toward raising your organization's EQ.
About the Author

Daniel Goleman received his Ph.D. from Harvard and is CoDirector of the Consortium for Research on
Emotional Intelligence in Organizations at Rutgers University. He is the author of many books, including the
groundbreaking Emotional Intelligence.
180
12/22/2016 15 Secrets Successful People Know About Time Management Summary | Kevin Kruse
Book
15 Secrets Successful People
Successful people are different –
Know About Time among other things, they do a better
job of managing their time.
Management
The Productivity Habits of 7 Billionaires, 13 Olympic
Athletes, 29 Straight-A Students, and 239 Entrepreneurs
Kevin Kruse
Kruse Group, 2015
Buy the book
Recommendation
Kevin Kruse – New York Times bestselling author, Forbes contributor and Inc.
500 awardwinning entrepreneur – combines his skills as a CEO and a journalist
to search for common bonds of success by surveying people of great
accomplishment. In surprisingly personal replies, billionaires, entrepreneurs and
Olympians stress that they make the most of every minute, at work and at play.
High achievers follow a fundamental mindset. They regard time as an asset more
valuable than money and they spend every minute wisely. They focus on their top
goals. They strip clutter from their workplace and reject timeconsuming
commitments. Even handson entrepreneurs delegate most tasks. In this guide
brimming with verbatim insights, top achievers emphasize the need for rest,
exercise and even fun – maybe that’s why Kruse included some intriguing apps.
getAbstract recommends his practical advice to anyone who wants to become
more efficient and more successful.

• How top achievers use their time as an asset
• How to shed distractions so you can focus your energy on your personal
priorities and goals
• How rest and recreation can help you succeed
Take-Aways
• Highly successful people view time as their most valuable asset.
• A tightly scheduled calendar relieves stress and increases intellectual focus.
• Identifying your most important goal will help you prioritize your tasks.
• Many of the world’s wealthiest entrepreneurs carry notebooks so they can
jot down their ideas immediately.
• Brief daily huddles can replace long meetings, reduce emails and unite your
team.
• The 80/20 principle holds that 20% of the work generates 80% of the
results.
181
• Delegating as many tasks as possible frees your time for your highestreturn
goals.
• Many entrepreneurs assign themes to days of the week, such as “focus days”
or “buffer days.”
• High achievers deal with incoming shortterm tasks instantly to avoid extra
work and clutter.
• Renewing your physical and mental energy with sleep and relaxation
improves your productivity.
Summary
Fifteen Top TimeManagement Tips

In a series of revealing interviews, seven billionaires, 13 Olympians, 29 star
students and 239 entrepreneurs explained their 15 most useful timemanagement
secrets:
“Highly successful
people don’t think about
time much at all. 1. “Time Is Your Most Valuable and Scarcest Resource”
Instead, they think about As a CEO irked by constant interruptions, author Kevin Kruse posted a large sign
values, priorities and reading, “1440.” He discovered that viewing his day as 1,440 minutes of potential
consistent habits.” success helped him focus on essential tasks. His employees began emulating his
1,440minute mindset, thus increasing productivity throughout his company.
Kruse’s interviews and surveys with top achievers confirm that they share this
point of view. They recognize time as their most valuable asset. The loss of money,
even the failure of a business, still leaves future opportunities to regain ground,
but lost time is irreplaceable.
2. “Identify Your Most Important Task” and Do It First

Successful people focus on their top priority, longterm goals and identify
meaningful, specific shortterm goals they must accomplish first. Breaking short
“If you aren’t busy term goals down into measurable steps guides high achievers to their “most
working on your own important tasks” (MIT). They concentrate on completing all or part of their MITs
goals, you’ll be working before they go on to other activities.
to achieve somebody
else’s goals.” Savvy CEOs confirm the scientific theory that the brain functions at its fullest
capacity during the first two hours each morning. Airbnb founder Nathan
Blecharczyk makes use of this burst of energy to concentrate on his main
priorities. Getting off to an early start each day gives you a work period of relative
peace before daily problems arise to distract you from your MIT.
3. “Work from Your Calendar, Not a ToDo List”

A todo list can become a monster. Vanquishing one problem only creates many
more to add to the list. Research indicates that most listmakers never complete
41% of their planned jobs. Daily lists tend to randomize the order of importance
among your tasks, thus muddling your focus. Most successful CEOs rely on
“Items on a todo list can
strictly scheduled calendars. Sticking to a schedule allows time for you to focus
sit there forever,
first on your MITs. Deciding what tasks deserve calendar space or blocks of time
constantly getting
bumped by things that keeps you from wasting time. Entrepreneurs report that tightly organized
seem urgent in the calendars reduce stress.
moment.”
Power players make their calendars work hard and play hard by reserving time for
solo concentration, for oneonone communication and for team input. They also
set aside specific chunks of time for relaxation. Briana Scurry, goalkeeper for two
gold medal–winning soccer teams, consistently took days off from training to rest
and regain perspective. Highly successful people set aside time to care for their
health and their personal lives, families and communities.
182
4. To Overcome Procrastination, “Beat Your Future Self”

Most people say procrastination is why they choose easier tasks first or believe
they will perform better later, but don’t measure up. Instead of delaying, try these
“Highly successful
“procrastination busters”:
people don’t have a todo
list, but they do have a
• Do now what you promise you’ll do later – Defeating procrastination
very wellkept
means doing what you should do right this minute instead of trusting some
calendar.”
future version of yourself “to do the right thing” later. If you say you’ll diet,
exercise or do that irksome job in five minutes, do it now. Have a salad
before you order ice cream, jog before you collapse on the couch and
proofread that report before you watch videos. People think they’ll be better
later, but they probably won’t. To succeed, be better now.
• For motivation, imagine your results – Whether finishing a task will
give you pleasure or failing to get it done will cause you pain, imagine the
outcome of your actions.
• Share the burden – Being responsible to someone else who shares your
“When people talk about goal, like a fellow jogger, creates an emotional commitment. Enlist an
‘time management,’ “accountability partner.”
what they really want is • Grab the carrot; avoid the stick – The promise of a future reward lures
to get more stuff done some people, but often the fear of punishment works better. Devising a
with less stress.” personal noncompletion penalty in the form of a charitable contribution
can turn your lack into a community gain.
• Behave like the person you hope to become – Adopt the behaviors of
your ideal self to anchor your values and make a firmer commitment to
them. Even going through the motions will help you achieve your personal
best.
• Embrace the imperfect – The desire for perfection may intimidate you
into inaction. Acknowledging imperfect work is a first step to easing the
stress that keeps you from starting at all. “Settle for good enough;” you can
always improve your output later.
“Successful people take
immediate action on
almost every item they 5. “There Will Always Be More to Do”
encounter. They know Successful people accept their limitations. From a mountain of tasks, they choose
that to be efficient, they their daily priorities, try to achieve them and leave the rest at the office for
want to expend the least another day. While work may be neverending, they know they must set
possible amount of time reasonable boundaries. Overcoming the onus of constant responsibility will help
and mental energy you lead a normal life and care for yourself and your family without guilt.
processing things.”
6. “Always Carry a Notebook”
Some of the world’s most famous billionaires, including Sir Richard Branson,
attribute their success to keeping a notebook handy. Jotting down stray thoughts,
meeting notes and great ideas creates indelible impressions, both on paper and in
your mind. Research shows the brain uses several intertwined functions to
process handwritten information. This results in more active, accurate recall than
typing. Once you capture your ideas, notes or lessons on paper, transfer them to a
computer for permanent future reference. Date your notebooks so you can refer
back to them.
“The act of taking notes
by hand involves active 7. “Control Your Inbox”
listening, cognitive
A survey by the McKinsey Global Institute indicates that office workers spend up
processing and finally
to onethird of their days reading and replying to emails. Be aware that “email is a
recall…People who take
great way for other people to put their priorities into your life.” Use the “321Zero”
notes with a laptop tend
to just robotically record system to keep email in its place: Three times a day, spend 21 minutes reviewing
spoken words, without your messages. Your goal is an inbox with no new mail.
doing the mental work
This arbitrary time limit will force you to reply with clear, succinct answers. Act
to process it.”
on each email when you open it. Decide if you should work on it immediately,
enter it on your calendar for later action, delegate it or file it. Frugal use of the
183
Copy and Forward commands help you avoid snowballing responses that clog
your inbox. Clever use of the subject line can alert the recipient as to whether your
email requires urgent action or a later response or is simply an FYI note.
8. “Schedule and Attend Meetings as a Last Resort”

Eliminating formal meetings can save everyone wasted time. Don’t set up or go to
meetings unless “all other forms of communication won’t work.” Many
“Cognitive capacity entrepreneurs use a brief daily huddle as a more efficient, informative and
declines throughout the unifying way to get their team moving. The late Steve Jobs famously avoided
day; you must build in meetings by substituting a short, eminently escapable stroll. Billionaire
frequent mental breaks entrepreneur Mark Cuban advises, “Never do meetings unless someone is writing
to recharge and a check.”
maintain productivity.”
9. “Say No to Everything that Doesn’t Support Your Immediate Goals”

Business magnate Warren Buffett advises that, “very successful people say no to
almost everything.” They realize that each commitment of their time may result in
the loss of other opportunities. They protect their most valuable asset, time, from
any request that doesn’t further their longterm priorities.
10. Follow the “Powerful Pareto Principle”

The Pareto principle holds that 20% of your effort accounts for 80% of your
results. Aspiring billionaires apply this economic principle to identify the most
“If you send less email,
efficient ways to deploy their exceptional skills or to complete important tasks.
you’ll also receive less
Use this principle to identify the 20% of your activities that will provide 80% of
email.”
the reward for your efforts.
11. Focus on “Your Unique Strengths and Passions”

As part of a productivity experiment, a Harvard research team asked employees to
analyze the chores they do on based on three questions: Could they drop the task
entirely as unnecessary? Could they delegate it to a competent subordinate? If
they had to do the task, could they examine it to develop a more efficient solution?
By following this program, each employee saved an average of “six hours of desk
work and two hours of meeting time each week.”
“Every yes will be a no A CEO who regularly delegates to trustworthy employees gains more energy and
to something else when productivity and suffers less stress. Outsourcing easier chores frees up your time
the time comes. Under and mental energy to concentrate on meaningful goals and high return projects.
standing that there is Youtility author Jay Baer advises trying to delegate “at least 15% of what you’re
always an opportunity doing.” However, some successful people refuse to delegate certain “grounding”
cost will make you
tasks. For example, Mark Cuban likes to wash his own laundry.
hesitate and really be
careful about what you
are agreeing to put on 12. “Batch Your Work with Recurring Themes”
your calendar.” Innovative entrepreneurs assign themes to their office days so their employees
can concentrate on one specific type of work. Scheduled weekly and monthly
themes can include “meeting” days for oneonone discussions, team gatherings
or group training seminars. Other themes include “focus days” to concentrate on
certain crucial tasks and “buffer days” for catching up. Facebook cofounder
Dustin Moskovitz sticks to a “No Meeting Wednesdays” theme. Devoting a staff’s
entire day to one kind of work encourages collective concentration that spurs
productivity.
13. If You Can Do a Task in “Less Than Five Minute, Do It

“People who actively Immediately”
look for things to Top achievers seek immediate return on their time. To expedite incoming work,
delegate report higher they enforce a “touch it once” principle:
levels of productivity,
happiness and energy.” • Handle email immediately – Delegate as much of it as you can.
Complete instantly anything you can handle in just a few minutes. If you
can’t resolve an email request quickly, add it to your calendar.
184
• Update your calendar as needed – Move timeconsuming tasks from

email to your calendar as a reminder to act on them as soon as possible.
Create weekly time blocks to deal with routine tasks, such as paying bills.
• Constantly clear clutter – Be mindful of time wasted searching for
mislaid items. Maintain order in your surroundings. A messy environment
can cause stress.
“If you don’t have an
admin, you are an 14. Routinely Use Early Mornings to “Strengthen Your Mind, Body and
admin.” Spirit”
Most entrepreneurs embrace a morning routine to reenergize physically and
mentally. They recharge with plenty of water, healthy food and exercise. Busy
CEOs invigorate their minds with reading or meditation. Uberachiever Arnold
Schwarzenegger rises at dawn to read several newspapers, do a cardiovascular
workout, and eat a breakfast of fruit and oatmeal.
15. “Productivity Is About Energy and Focus, Not Time”

Hard workers make room in their schedules for relaxation. Spending more time
on work doesn’t guarantee more or better results. Maintaining maximum energy
“The single most levels and working in short spurts aids productivity. The brain’s capacity to
important thing when it process data efficiently falters during the day, dropping from full energy to fatigue
comes to time and pro about every 90 minutes. Frequent breaks for water, nutritious snacks and light
ductivity isn’t a tactic or exercise rejuvenate the mind and encourage greater productivity. Billionaire
a trick – it’s a shift in Mohammed Dewji – the CEO of Tanzaniabased MeTL Group – relies on a
mindset.” midday workout to renew his energy and focus.
Take enough down time to build the energy you need to perform. Olympic athletes
depend on sleep to revitalize their bodies. Shannon Miller, seventime Olympic
medalist in gymnastics, enjoys brief power naps. Consistently healthful food, fun,
rest and recreation renew your physical stamina and mental focus. This fosters
greater productivity and enhances your life at play and at work. Successful people
build the energy and focus to make each minute count.
About the Author

Kevin Kruse is a New York Times bestselling author, frequent Forbes contributor, consultant and Inc. 500
awardwinner. He founded several multimilliondollar companies and conducts presentations on productivity at
conferences worldwide.
185
12/22/2016 The Happiness Industry Summary | William Davies
The Happiness Industry

Businesses and governments are
How the Government and Big Business Sold Us Well- turning happiness into a
Being requirement.
William Davies
Verso Books, 2016
Buy the book
Recommendation
Political economist William Davies, a lecturer at Goldsmiths, University of
London, discusses the official obsession with happiness. Happy workers are more
productive, but today’s workers aren’t happy. Their frequent absences and general
apathy cost billions of dollars in lost productivity every year. Managers and policy
makers respond with programs to boost happiness. They hire happiness
consultants, create positions like “chief happiness officer” and monitor social
media for spikes in sad words. In dispassionate prose spiced with moments of dry
humor, Davies offers a detailed, dense and depressing look at the increasingly
pervasive monitoring and manipulation of people’s moods. getAbstract suggests
this contrarian view to managers, policy makers, entrepreneurs and those who
prefer to determine for themselves how they feel – happy or not.

• Why 21stcentury businesses and governments seek to boost happiness
• How the science of measuring and manipulating happiness developed
Take-Aways
• The world’s economic policy elite sees happiness – and worker engagement
– as central concerns.
• Happy workers are more productive, but today’s workers aren’t happy.
• Gallup estimates that worker unhappiness costs the United States more
than $500 billion a year in lost tax revenues, lost productivity and health
care expenses.
• Businesses view happiness as a resource, not a goal.
• Science can more effectively and objectively measure happiness.
• Sources – such as social media – that can provide data about a population’s
wellbeing gain influence.
• Enlightenment philosopher Jeremy Bentham (17481832) – the founder of
modern utilitarianism – proposed happiness as a means of social control.
• Happiness initiatives intend to change individuals’ attitudes, but don’t
change the power imbalances that cause depression.
186
• Mental illness rates correlate closely with social problems such as income
inequality.
• An effective approach to wellbeing is to focus on reforming dysfunctional
institutions.
Summary
The Happiness Regime

Worker disengagement undermines productivity, and pervasive mental illness
strains government resources. The rising rates of depression and worker
“As a measurable, disengagement may explain why those in power in corporations and government
visible, improvable now prioritize cultivating happiness. Business leaders and public policy makers
entity, [happiness] has dwell extensively on the techniques and technology they can use to measure and
now penetrated the mitigate stress, illness and depression.
citadel of global
economic management.” Corporations now create such positions as “chief happiness officer.” They draw on
neuroscience to track employees’ moods and hire behavioral consultants to craft
programs to cheer up the members of their workforce. Governments keep
statistics on national wellbeing and offer optimism coaching to the unemployed.
At least one municipality experimented with “positive psychology” programs in
schools to inculcate the habits of optimism in children.
The happiness movement ignores such social and political conditions as income
inequality and a hypercompetitive culture that contribute to a general malaise. It
“In scrapping the tends to view depression and other disaffectionrelated disorders as individual
possibility that a mental problems to fix with medication or therapy.
syndrome might be an
understandable and pro A History of Happiness
portionate response to a The concept of happiness as a tool of business and government manipulation
set of external circum
dates back to the 18thcentury Enlightenment. In his doctrine of economic
stances, psychiatry lost
utilitarianism, philosopher Jeremy Bentham (17481832) argued that government
the capacity to identify
policies should bring the most happiness to the greatest number of people. But
problems in the fabric of
how could anyone measure the levels of happiness that particular actions might
society or economy.”
produce? Bentham suggested measuring people’s pulse rates to reveal their inner
feelings. This foreshadowed today’s efforts to quantify emotions by monitoring
heart rates, brain waves and eye movements. Bentham advocated using the
vicissitudes of the marketplace as a model of the mind and its desires. This
became a reality in the 19th century.
The Money Metric

In the 1870s, economic theorist William Stanley Jevons (18351882) showed how
“It was via the subjective money could serve as an emotional yardstick. His innovation redefined the
experience of work, as concept of market value. Instead of regarding a product’s value as the sum of the
an exercise that materials and the work that went into producing it, Jevons identified value as a
gradually increases in subjective judgment that a consumer reached independently. As a result, the
painfulness, that prices of goods serve as a barometer of public attitudes and desires.
capitalists became
interested in how we Jevons tried to imagine a method for measuring the amount of pleasure a person
think and feel for the exacted from a purchase. One scholar conceived of a machine called the
very first time.” “hedonimeter.” But economists who follow the markets lost interest in subjective
feelings. For them, it was enough to track which items sparked consumer
preferences.
“Behaviorism”
187
At the dawn of the 20th century, psychologists in America moved even further
“The journey time from abstract and metaphysical issues. The behaviorist tradition took this trend to
between the founding of the extreme. Championed by American Psychological Association president John
American psychology B. Watson (18781958), behaviorism taught psychologists that they didn’t need to
and its application to probe for patients’ feelings. They could learn all they needed to know by observing
business problems was people’s responses to various stimuli. Watson eliminated the roles of inner drives,
extremely short.” desires and perceptions, declaring he could explain all human behavior as the
result of conditioning.
His contentions drew the interest of the field of advertising. In 1920, Watson
joined the J. Walter Thompson ad agency where he pursued the idea that the
function of an effective ad was not to extol the product but to “trigger” emotions
through stimuli.
Watson didn’t care what customers wanted. He believed he could tell them what
“There is troubling they wanted by triggering the appropriate emotions. As a hedge against Watson’s
evidence that depression cockiness, the Thompson agency supplemented his behavioral approach with
can be triggered by the surveys of consumer attitudes. With sound survey methods, marketers could learn
competitive ethos itself, what people wanted and market those desires back to them through triggerladen
afflicting not only the behaviorist advertising.
‘losers’ but also the
‘winners’.” Return of the Measurers
In the second half of the 20th century, economists and policy makers increasingly
used marketbased metrics to calculate people’s attitudes about issues outside the
marketplace. By establishing a monetary value for everything – including nature
– they sought to use economics to settle public legal disputes, such as issues
surrounding the extent of Exxon’s liability in the 1989 Alaskan oil spill.
Researchers calculated the economic toll by surveying US citizens about how
much they would be “willing to pay” to have prevented the spill. They
reinterpreted citizens’ desire for a clean coast in terms of market value.
“Relentless fascination
with quantities of Such an expansion of money metrics beyond the market sparked interest in
subjective feeling can measuring levels of happiness. If economists could gauge happiness, they could
only possibly divert compare the happiness levels of people with different incomes and compute a
critical attention away correlation between pleasure and money. With that correlation as a benchmark,
from broader political they could establish the monetary value of nonmarket commodities – like clean
and economic air or a library – by measuring pleasure they provide. British officials used this
problems.” technique to determine the value of cultural institutions.
Unhappy Workers
Worker disengagement is a major threat to productivity. The Gallup organization
believes unhappy workers’ frequent absences and apathetic performance cost the
US economy more than $500 billion a year in lost tax revenues, lost productivity
and health care costs. Governments worry because lower productivity leads to
faltering economies and lower tax receipts.
“By 1920, the If unhappy workers lose their jobs, the government may have to provide
advertising industry
unemployment benefits. Countries with socialized health care may face more
was fully alert to the
costs because many unhappy workers also have lowlevel mental health problems
potential riches offered
that can intensify amid the uncertainty of unemployment. Contending with
by psychology.”
mental disorders consumes 3% to 4% of GDP in the US and Europe.
Most of the mental and physical problems that workers suffer are “nonspecific”
complaints that fall under the rubric of “stress.” Studies by psychologist Robert
Kahn in the 1960s suggest that the roots of workplace stress may lie in the
structure of the workplace itself, where hierarchical organizational ladders and
lack of worker autonomy provoke feelings of disempowerment. Yet, instead of
modifying that structure, management chose to focus on modifying workers –
trying to fix their unhappiness.
“Every leading
advertising and market
188
research guru has come A booming business in happiness consultancy sprang up to help companies and
to view the emotional government agencies meet that goal. “Happiness gurus” now offer motivational
aspects of the mind and psychology and meditation practices for disengaged workers and for managers
brain as the target for who fear burnout. One top happiness guru even recommends laying off the 10% of
their ad campaigns and workers who demonstrate the least zeal for the happiness syllabus, claiming that
research.” the surviving employees suddenly become “superengaged.”
Others keep tabs on happiness through surveillance. Managers evaluate

employees through algorithmic analysis of office emails. Increasingly managers
are turning to realtime health data to monitor performance. One company offers
a wearable device that tracks and archives data on such variables as an employee’s
tone of voice. These managers look on happiness as a “resource.” Wellbeing
becomes merely a means of achieving profits, status or power. Managers view
experiences like office friendship as valuable only because they can extract the
“What begins as a happiness friendship brings as fuel for their next business challenge.
scientific inquiry into the
conditions and nature of Technology’s Influence
human welfare can
Many experts are optimistic about their ability to manipulate mood because
swiftly mutate into new
modern technology opens opportunities for monitoring and interpreting
strategies for behavioral
population behavior.
control.”
Experts can access to a vast repository of granular data, thanks to technological
innovations and societal changes such as:
• The rise of big data – People’s daily transactions with businesses,

government as well as the networked “smart” infrastructure produce
behavioral records that institutions can use to analyze.
• The rise of “narcissism” – People often lack the patience to answer
“Stress can be viewed as surveys and polls. Yet they happily offer their “thoughts, tastes, likes,
a medical problem, or it dislikes and opinions” on Facebook, which preserves their entries in its data
can be viewed as a banks.
political one.” • “Emotionally intelligent” computers – Researchers can now program
or “teach” computers to deduce moods and attitudes based on people’s
behaviors. Analysts designed algorithms to uncover underlying emotions in
Twitter and Facebook posts. Programs also can read emotions in facial
expressions captured on surveillance cameras. Tesco supermarkets
experimented with surveillance systems that interpret customers’ moods
and show display ads appropriate to each customer’s state of mind.
Society may realize Bentham’s dream of discovering how to stimulate measurable

“The goal is not to make increases in happiness, but then society itself would become a laboratory where
employees feel valued, policy makers access enormous stores of psychological data. An ominous
but to rearrange power indication of the future came in 2014, when Facebook revealed the results of an
relations such that they “emotional contagion” experiment in which the company tried to regulate users’
are valued, a state of moods by secretly modifying their newsfeeds.
affairs that will most
likely influence how they
Consequences
feel as a side effect.”
The drive to cultivate happiness focuses on seeing people as damaged entities in
need of repair. It ignores the context in which individual unhappiness arose,
disregarding whether the emotion is a reasonable response to a condition of
people’s lives. The medicalized view of the mind may contribute to this problem.
Many psychologists describe the link between mental illness and feelings of
disempowerment. Perhaps the view of the mind as a broken thing to fix with
behavioral treatment or pharmaceutical intervention encourages the passivity
associated with being disempowered. To address this sense of being powerless,
society must face the “social, political and economic institutions” that cause it.
“Highend wellness
consultants make large
sums of money by Alternatives
teaching corporate elites
how to maintain
189
themselves in a state of Research traditions try to incorporate the context of people’s lives into how they
optimal psychosomatic are treated for depression and disengagement. The “community psychology”
fitness.” tradition, for instance, tries to understand individuals within the context of their
society. Some clinical psychologists also explore sociological and political
influences on emotion. Throughout the history of capitalism, these sociological
perspectives have inspired movements to reform social and economic institutions.
Challenging the status quo is difficult, and the focus of such campaigns tends to
eventually shift to changing people’s experience of the status quo.
To address the happiness deficit effectively, people need to feel that they have the
agency and empowerment to speak for themselves, to state what they like or
“The only escape from a dislike about their jobs, and to stop relying on experts’ measurements to explicate
manager who wants to their feelings. For that to happen, powerful people would have to hear criticism
be your friend is to without labeling it as a symptom of unhappiness and trying to cure it. In fact,
become physically ill.” seeing criticism or complaining “as a form of ‘unhappiness’ or ‘displeasure’ is to
bluntly misunderstand what those terms mean, or what it means to experience
and exercise them.”
To create alternatives, society should “demedicalize” misery. As psychiatrists and

clinical psychologists know, the problem of unhappiness doesn’t originate within
people apart from the context of their lives. Society should redirect some
expenditures from the happiness budget and use those resources, instead, to re
engineer the structure of political and economic institutions.
For instance, you could reshape the structure of your business, dropping the
hierarchy in favor of “cooperative control.” When employees have input into their
work, they don’t need happiness exercises to appreciate their own worth.
About the Author

Political economist William Davies is a senior lecturer at Goldsmiths, University of London, where he is co
director of the Political Economy Research Center. He has written for The Atlantic, The New York Times and The
New Statesman.
190
12/22/2016 The Black Swan Book | Nassim Nicholas Taleb
Book
The Black Swan
The Impact of the Highly Improbable
Nassim Nicholas Taleb
Random House, 2007
Buy the book
Rating  Recommendation
10
8 Applicability According to critic Harold Bloom, Hamlet's predicament is not "that he thinks too
much" but rather that "he thinks too well," being ultimately "unable to rest in
10 Innovation
illusions of any kind." The same could be said for philosopher, essayist and trader
10 Style Nassim Nicholas Taleb, who finds something rotten in misguided yet supremely
confident investment gurus, traders, hedge fund managers, Wall Street bankers,
M.B.A.s, CEOs, Nobelwinning economists and others who claim that they can
predict the future and explain the past. Like everyone else, says Taleb, these so
called "experts" fail to appreciate "black swans": highly consequential but unlikely
events that render predictions and standard explanations worse than worthless.
Taleb's style is personal and literary, but his heterodox insights are rigorous (if
sometimes jolted by authorial filigree). This combination makes for a thrilling,
disturbing, contentious and unforgettable book on chance and randomness. While
Taleb offers strong medicine some readers may find too bitter at times,
getAbstract prescribes it to anyone who wants a powerful inoculation against
gullibility.

• Why highly significant yet unpredictable events, called "black swans," are
underappreciated
• Why people continually see misleading patterns in data
• How to embrace randomness and come to terms with black swans
Take-Aways
• "Black swans" are highly consequential but unlikely events that are easily
explainable – but only in retrospect.
• Black swans have shaped the history of technology, science, business and
culture.
• As the world gets more connected, black swans are becoming more
consequential.
• The human mind is subject to numerous blind spots, illusions and biases.
• One of the most pernicious biases is misusing standard statistical tools, such
as the "bell curve," that ignore black swans.
191
• Other statistical tools, such as the "powerlaw distribution," are far better at
modeling many important phenomena.
• Expert advice is often useless.
• Most forecasting is pseudoscience.
• You can retrain yourself to overcome your cognitive biases and to appreciate
randomness. But it's not easy.
• You can hedge against negative black swans while benefiting from positive
ones.
Summary
When All Swans Were White

Before 1697, teachers confidently taught European schoolchildren that all swans
were white. They had little reason to think otherwise, since every swan ever
examined had the same snowy plumage. But then Dutch explorer Willem de
“The modern world...is Vlamingh landed in Australia. Among the many unlikely creatures down under –
dominated by rare –
odd, hopping marsupials called kangaroos, furry duckbilled platypuses, teddy
very rare – events.”
bearlike koalas – Vlamingh found dark feathered birds that looked remarkably
like swans. Black swans? Indeed. Once observed, they were as unmistakable as
they had been unimaginable, and they forced Europeans to revise forever their
concept of "swan." In time, black swans came to seem ordinary.
This pattern is common. Just because you haven’t seen a black swan, doesn't
mean that there are no black swans. Unlikely events seem impossible when they
lie in the unknown or in the future. But after they happen, people assimilate them
into their conception of the world. The extraordinary becomes ordinary, and
"experts" such as policy pundits and market prognosticators kick themselves
“We respect what has because they didn't predict the (now seemingly obvious) occurrence of the (then)
happened, ignoring unlikely event. Think of the advent of World Wars I and II, the terrorist attacks of
what could have 9/11, the popping of the 1990s Internet stock bubble, or worldchanging
happened.” inventions like the internal combustion engine, the personal computer and the
Internet. Cultural fads like the Harry Potter books are the same. These events and
inventions came out of nowhere, yet in hindsight they seem almost inevitable.
Why?
The human mind is wonderful at simplifying the onslaught of today's "booming,

buzzing confusion" of data. This makes perfect sense: After all, the brain is the
product of evolution, which works with what it has, and so it has not crafted some
new, ideal cognitive mechanism. The human brain is a marvel, but it is built for
living in huntergatherer groups on the African savannah 200,000 years ago.
“We humans are an Then, it just needed to be good enough to allow humans to survive until they
extremely lucky species, reached reproductive age. Simplifications, mental schemas, heuristics, biases,
and...we got the genes of selfdeception – these are not "bugs" in the cognitive system, but useful features
the risk takers. The that allow the human mind to concentrate on the task at hand and not get
foolish risk takers, that overwhelmed by a literally infinite amount of data. But human simplifying
is.” mechanisms are not without their costs. Take stories, for example.
The Narrative Fallacy

Stories help people remember and make sense of the past. Think of a typical
business magazine profile of a successful businessman. The story begins in the
present, after he has become rich beyond his wildest dreams. The story then cuts
back to his humble beginnings. He started with nothing and wanted to get rich (in
terms of story structure, his "dramatic need"). He faced obstacle after obstacle
(perhaps he had a rival – the "antagonist"). But he made shrewd decisions and
flouted the wisdom of the Cassandras who counseled caution ("Idiots!"). As
success built on success, he amassed a fortune. He retired early, married a model
192
and now has brilliant children who play Chopin blindfolded and will all attend Ivy
“We like stories, we like League colleges. His virtues will be extolled in a BSchool case study. Wideeyed
to summarize, and we M.B.A. students will sit rapt at his feet when he visits their schools on a lecture
like to simplify, i.e., to tour promoting his latest book. He is a superman, an inspiration.
reduce the dimension of
matters.” Now consider an alternative hypothesis: He got lucky. His putative "virtues" had
nothing to do with his success. He is, essentially, a lottery winner. The public
looks at his life and concocts a story about how brilliant he was, when, in fact, he
was merely at the right place at the right time. This is the "ludic fallacy" (ludus
means game in Latin): People underestimate luck in life – though they ironically
overestimate it in certain games of "chance." Even the businessman himself falls
victim to flawed thinking through the selfsampling bias. He looks at himself, a
sample of one, and draws a sweeping conclusion, such as, "If I can do it, anyone
can!" Notice that the same reasoning would apply had he merely bought a
winning lottery ticket. "I'm a genius for picking 3293927! Those long odds didn't
mean a darn thing. I mean, after all, I won didn't I!"
“Now, I do not disagree
with those recommend Not all success is luck. In some professions, skill matters (for example, if you are a
ing the use of a
dentist), but luck dominates in others. In the case of the inspiring businessman,
narrative to get
consider his population cohort. Where are all the similarly situated people who
attention...It is just that
started out like him and have the same attributes? Are they also rich? Or
narrative can be lethal
homeless? Usually you can't find this sort of "silent" disconfirming evidence.
when used in the wrong
places.” Artistic success provides a perfect illustration. While Balzac is famous now,
perhaps countless other equally talented writers were producing comparable work
at the same time. Yet their writings are lost to posterity because they did not
succeed. Their "failure" hides the evidence that would undercut Balzac's "success"
as a uniquely great writer. The evidence is silent, lost in the graveyard of history.
The mind uses many more simplifying schemas that can lead to error. Once
people have theories, they seek confirming evidence; this is called "confirmation
bias." They fall victim to "epistemic arrogance," becoming overconfident about
their ideas and failing to account for randomness. To make their theories work,
people "smooth out" the "jumps" in a time series or historical sequence, looking
“Notice that close to two for and finding patterns that are not there. Their conceptual categories will limit
centuries ago people had what they see; this is called "tunneling." They turn to "experts" for help, but often
an idealized opinion of these expert opinions are no better – and often they are worse – than the
their own past, just as "insights" gained from flipping a coin or hiring a trained chimp to throw darts at
we have an idealized the stock listings. Worst of all, people steadily fail to consider "black swans," the
opinion of today's past.”
highly consequential rare events that drive history.
"Mediocristan" or "Extremistan?"
So the human mind tends to smooth away the rough features of reality. Does this
matter? It can matter, and a lot, depending on whether you're in "Mediocristan"
or "Extremistan." Where are these strange places? Nowhere. They are actually
memorable metaphors for remembering two wildly different classes of natural
phenomena. Mediocristan refers to phenomena you could describe with standard
statistical concepts, like the Gaussian distribution, known as the "bell curve."
Extremistan refers to phenomena where a single, curvedistorting event or person
“I know that history is
can radically skew the distribution. Imagine citing Bill Gates in a comparison of
going to be dominated
executive incomes.
by an improbable event,
I just don't know what To understand the difference, think about human height versus movie ticket sales.
that event will be.”
While a sample of human beings may contain some very tall people (perhaps
someone eight feet tall) and some very short people (perhaps someone two feet
tall), you wouldn't find anyone 3,000 feet tall or an inch tall. Nature limits the
heights in the sample. Now consider movie ticket sales. One hit movie can have
sales that exceed the median value by such a radical extent that modeling the
sample with a Gaussian curve is misleading – thereby rendering the notion of
“median value” meaningless. You'd be better off using a different kind of curve for
193
such data, for instance, the "power law" curve from the work of Vilfredo Pareto (of
“Prediction, not 80/20 "law" fame). In a power lawmodeled distribution, extreme events are not
narration, is the real test treated as outliers. In fact, they determine the shape of the curve.
of our understanding of
the world.” Social phenomena are impossible to model with the Gaussian normal distribution
because these phenomena exhibit "social contagion," that is, abundant feedback
loops. For instance, one reason you want to see a hit movie is that everyone else
has seen it and is talking about it. It becomes a cultural event that you don't want
to miss. And neither does anyone else. In these situations, the "rich get richer":
The hit film gets increasingly popular because of its popularity until some
arbitrarily large number of people have seen it. And speaking of rich, wealth
follows this pattern, too. The extremely wealthy are not just a little bit wealthier
than normal rich people; they are so much wealthier that they skew the
distribution. If you and Bill Gates share a cab, the average wealth in the cab can be
north of $25 billion dollars. But the distribution is not bell shaped. When this
“I find it scandalous that
happens, odds are you're no longer in Kansas. You're in Extremistan.
in spite of the empirical
record we continue to
project into the future as Phony Forecasting (or Nerds and Herds)
if we were good at it, Extremistan might not be so bad if you could predict when outliers would occur
using tools and methods and what their magnitude might be. But no one can do this precisely. Consider hit
that exclude rare movies. Screenwriter William Goldman is famous for describing the "secret" of
events.” Hollywood hits: Nobody can predict one. Similarly, no one knew whether a book
by a mother on welfare about a boy magician with an odd birthmark would flop or
make the author a billionaire. Stock prices are the same way. Anyone who claims
to be able to predict the price of a stock or commodity years in the future is a
charlatan. Yet the magazines are filled with the latest "insider" advice about what
the market will do. Ditto for technology. Do you know what the "next big thing"
will be? No. No one does. Prognosticators generally miss the big important events
– the black swans that impel history.
Chalk these errors up to "nerds and herds." Nerds are people who can only think
in terms of the tools they have been taught to use. When all you have is a hammer,
“What matters is not
how often you are right, everything becomes a nail. If all you have is Gaussian curves, sigma (standard
but how large your deviation), and mild, ordinary randomness, you'll see bell curves everywhere and
cumulative errors are.” will explain away disconfirming data as "outliers," "noise" or "exogenous shocks."
(The proliferation of Excel spreadsheets allowing every user to fit a regression line
to any messy series of data doesn't help.) Further, humans follow the herd and
look to "experts" for guidance. Yet, some domains can't have experts because the
phenomena the expert is supposed to know are inherently and wildly random. Of
course, this discomforting thought requires a palliative, which is to think that the
world is much more orderly and uniform than it often is. This soothing belief
usually serves people well. Then comes a stock market drop or 9/11 (on the
downside), or Star Wars and the Internet (on the upside), and the curve is shot.
“Put yourself in Befriending Black Swans

situations where Even given these grim facts, the world need not become, in Hamlet's words, "a
favorable consequences sterile promontory," nor need a beautiful sky appear "a foul and pestilent
are much larger than congregation of vapors." You can tame, if not befriend, the black swan by
unfavorable ones.” cultivating some "epistemic virtues:"
• Keep your eyes open for black swans – Look around and realize when
you are in Extremistan rather than Mediocristan. Social contagion and rich
getricher phenomena are clues that you've just gotten off the bus in
Extremistan.
• Beliefs are "sticky," but don't get glued to them – Revise your beliefs
when confronted with contrary evidence. Dare to say, "I don't know," "I was
wrong" or "It didn't work."
• Know where you can be a fool and where you can't – Are you trying
“We misunderstand the to predict what sort of birthday cake your daughter wants? Or the price of
logic of large deviations oil in 17 years after investing your life's savings in oil futures? You can't help
194
from the norm.” being foolish – no one can. But sometimes foolishness is dangerous, and
sometimes it is benign.
• Know that in many cases, you cannot know – Think outside your
usual, customary conceptual categories. Eliminate alternatives that you
know are wrong rather than always trying to find out what is right.
• As a forecasting period lengthens, prediction errors grow
exponentially – Suspend judgment where evidence is lacking and be wary
of overly precise predictions. "Fuzzy" thinking can be more useful. Often you
should focus only on consequences, not overly precise probabilities.
“Every morning the • Expose yourself to "positive black swans" – And, at the same time,
world appears to me hedge against negative ones. "Bet pennies to win dollars." Look for
more random than it did asymmetries where favorable consequences are greater than unfavorable
the day before, and ones. Maximize the possibilities of serendipity by, say, living in a city, and
humans seem to be even having a wide circle of diverse friends and business associates.
more fooled by it than • Look for the nonobvious – Seek out disconfirming evidence for pet
they were the previous theories. Think, "What event would refute this theory?" rather than just
day.” stacking up confirming evidence for the sake of consistency, and turning out
any evidence that contradicts your notion. In other words: Amassing
confirming evidence doesn’t prove a theory or a mental model.
• Avoid dogmatism – "Denarrate" the past and remember that stories
mislead. That's the whole point: They are psychological armor against the
"slings and arrows of outrageous fortune." Think for yourself. Avoid nerds
and herds.
This universe, this planet and your life were highly unlikely. But they happened.
Enjoy your good fortune and remember that you are a black swan.
About the Author

Nassim Nicholas Taleb, a former derivatives trader, is Dean's Professor in the Sciences of Uncertainty at the
University of Massachusetts and teaches at New York University's Courant Institute of Mathematical Sciences.
He also wrote Fooled by Randomness.
195

Business Book Summaries

Uploaded by

Copyright:

Available Formats

Business Book Summaries

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Business Book Summaries

Uploaded by

Copyright:

Available Formats

The world of business summarized.

Summaries of the 40 best business books

Firas Horany English

In this summary, you will learn

Key 2: "Focus on Clients, Not Compensation"

Key 4: "Go Long and Deep"

Key 5: "You’ve Got to Believe"

Key 7: "Give Them Something to Say ’Yes’ To"

Key 8: "Develop a Marketing Rhythm"

Key 9: "Follow the 60­20­20 Rule"

Key 10: "Automate Your Sales Process"

Key 11: "Open the Johari Window"

Key 12: "Market Yourself as the Expert"

Key 14: "Master the Art of Communication"

Key 16: "Always Be Closing"

Key 18: "Cultivate Your Referrals"

Key 19: "Create Your Compelling Vision"

Key 20: "Close More Sales with Scripting"

Key 21: "Make Them Love You"

Key 22: "Energize Your Success"

About the Authors

This document is restricted to the personal use of Firas Horany ([email protected])

In this summary, you will learn

• Fifth, provide information of “practical value” to prompt people to spread

Engage your customers or clients in a game, such as a mileage program, to keep

People talk about products, brands and organizations frequently – on average,

Triggers can arise unexpectedly, often in the environment surrounding your

“Making something 5. “Practical Value”

About the Author

This document is restricted to the personal use of Firas Horany ([email protected])

In this summary, you will learn

• The team has a “problem owner, sponsor, resources” and “information

Why Dealstorming Works

Information technology enables prospective buyers to gather their own knowledge

When to Stop a Sale

The Dealstorm Team

“Consensus isn’t about

“Give praise to the team Successful Dealstorm Meetings

The “Collaborative Idea”

About the Author

This document is restricted to the personal use of Firas Horany ([email protected])

In this summary, you will learn

The Value of E­Learning

The downside of learning by doing is that it can be dangerous and expensive.

“Effective e­learning • Make learning engaging, or people won’t learn.

Using the Learning by Doing Principle

Avoid the traditional educational model. Unfortunately, many companies fall

The four steps to creating an effective e­learning course are:

Learning from Other Companies’ E­Experience

• To keep learners interested, show how difficult content, such as complex

Designing Powerful E­Learning Delivery Systems

• Incorporate "stories, simulations, goals, practice, fun and failure."

About the Author

This document is restricted to the personal use of Firas Horany ([email protected])

In this summary, you will learn

• Cultivating emotional intelligence is a cost­effective management

Components of Emotional Intelligence

Yale psychologist Peter Salovey analyzed emotional intelligence in five realms:

Self­Awareness: Knowing Your Emotions

Managing Emotions: Handling Your Feelings

Key 9: "Follow the 602020 Rule"

The Value of ELearning

“Effective elearning • Make learning engaging, or people won’t learn.

The four steps to creating an effective elearning course are:

Learning from Other Companies’ EExperience

Designing Powerful ELearning Delivery Systems

• Cultivating emotional intelligence is a costeffective management

SelfAwareness: Knowing Your Emotions

Psychologists have identified a peakperformance state called "flow," which

• Marriage Emotional intelligence can help counteract the social and

• Selfawareness comes from recognizing internal cues and interpreting them

SelfAwareness and SelfControl

Selfawareness is a focus that works as an internal compass. It governs your

Anyone seeking ideas about building a topflight organization with a culture to

One Thousand Four Hundred and ThirtyFive

The researchers conducted an indepth analysis of each great company –

Collins structures the path of goodtogreat firms as “a process of buildup

1. They are secure in themselves Nearperfect chiefs have to be secure, to