Show Me The Money with Leigh Steinberg

Posted by John Livesay in podcast | 0 comments

08.11.17

 TSP 135 | Show Me The Money

Episode Summary

TSP 135 | Show Me The MoneyToday’s guest on The Successful Pitch is Leigh Steinberg who was the inspiration for the character Jerry Maguire. He has a fascinating story of where that famous line, “Show me the money” came from, so you’re going to really want to listen to hear how that came about. Leigh is also very interested in making a difference in the world, not only with his own business but for the athletes and coaches and newscasters that he represents. He’s all about making sure that people know about anti-bullying as well as the issues of concussion with football players. He has all kinds of tips on how to take what you’ve learned as an athlete and apply it to the business world, whether it be courage under pressure or the self-discipline that you learn from sports and applying that to being a business leader. He said when you ask the right questions, you draw people out, and that’s really the secret to negotiating a great deal. Enjoy the episode.

 

Listen To The Episode Here

 

Show Me The Money with Leigh Steinberg

 

Today’s guest is Leigh Steinberg who is the CEO and Chairman of the Board at Steinberg Sports and Entertainment. He has two core values that I am really resonating with and excited to bring you, about treasuring relationships and making a positive impact in the world. Leigh represents professional athletes that are willing to serve as role models. He can retrace the roots to high school and collegiate programs and scholarships. He has represented eight players in the Pro Football Hall of Fame. He represents boxers like Oscar De La Hoya. He represents literally 40 television news anchors, sportscasters and coaches. As if that’s not enough, he was a creative consultant on Jerry Maguire, to name a few. Leigh, welcome to the show. 

Thank you, John.

I’m always interested to ask my guest to tell me and our listeners the story of origin. In other words, I know you went to Berkeley and got your law degree there and actually taught legal things. How did you get from being so involved in the law into becoming this guru for sports and entertainment?

TSP 135 | Show Me The Money

Show Me The Money: Leigh Steinberg was the inspiration for the character Jerry Maguire.

I went to Berkeley in the tumultuous time of the late 60s and early 70s, ended up Student Body President when the Governor of California was Ronald Reagan. I learned all I needed to know about negotiating from interacting with Governor Reagan as we were on the streets protesting the war in Vietnam and he was crushing those protests. I became a dorm counselor in an undergraduate dormitory. Working my way through law school, they moved the freshman football team into the dorm, and one of the students was Steve Bartkowski. In 1975, he became the very first player picked in the first round of the NFL draft. There really wasn’t sports agencies then. Players mostly represented themselves or have their parents represent them. He asked me to represent him and we got the largest rookie contract in NFL history. Berkeley was laid back when it came to sports, and so was Southern California where I’ve grown up.

We got back to Atlanta, their Klieg lights flashing in the sky like for a movie premier. A huge crowd was pressed up against the police line and the first thing we heard was, “We interrupt the Johnny Carson Show to bring you a special news bulletin, Steve Bartkowski and Leigh Steinberg have just arrived at the Atlanta Airport. We switch you live for the interview.” It was really then I saw the tremendous idol worship and veneration that athletes were held in communities across the country, how they were movie stars and celebrities. I thought if I could take those core values and have athletes go back to the high school community and retrace their roots by setting up a scholarship fund or working with the boys and girls club or church and then go to the collegiate community and endow some form of a scholarship, and then set up a charitable foundation at the professional level where the leading business figures, community leaders, and the political leaders with chairs and advisory board and set up a foundation that enhance the quality of life. They really could serve as role models, show the qualities of their character, and make a profound difference in the world.

It’s not enough to just be famous, I don’t think. You still want to make an impact in the world. In fact, one of the people I think that does that really well is Judith Light. I am fortunate enough to know her on a personal level. She’s won two Tony’s and an Emmy and all kinds of great stuff. She uses that fame to support causes that she believes in. It sounds like that’s what you’re doing for the athletes that you represent.

Running back to Tampa and Atlanta, just flipped 161st single mother and her family into the first home they’ll ever own by making the down payment and having the output. We have athletes who are working on causes from dyslexia to endangered species, from at-risk kids. Warren Moon has sent hundreds of kids with scholarships to college through his Crescent Moon Foundation. Troy Aikman has enriched children’s hospitals. The athletes pick something near and dear to them and then go ahead and make a difference. While they’re doing it, they’re learning skills other than athletic ones and they’re networking. It also can be messaging. I had the boxer, Lennox Lewis, cut the public service announcement that said, “Real men don’t hit women.” He was able to permeate the perceptual screen that especially rebellious adolescents put up against authority figures in messages and make more of a difference on an issue like domestic violence than a thousand authority figures ever could. Steve Young and Oscar de la Hoya, “Prejudice is foul play.”

[Tweet “Build Trust Through Listening”]

There’s so much to unpack there. First of all, the irony of having someone who’s a boxer talk about not bullying people and then realizing that a lot of people somehow don’t see color when they see a star athlete. Then that athlete as a person has still experienced some form of racism and can be the person to speak out and say, “This is not okay.”

We use the cultural symbols to try and deliver messaging in a way that triggers imitative behavior. It could be Bruce Smith, all-time sack leader in the NFL being part of The Impression Virtual Environmental Law March on Washington. It can be Warren Moon and I posing for an ad for one of the environmental organizations. You’re able to take an athlete like Rolf Benirschke, who did a program with the San Diego Zoo called Kicks for Critters, which raised millions of dollars and exposure for the concept that many species are endangered and they can be saved.

I think having athletes who have a shelf life much like a dancer, for example, ballet dancers or somebody like that, you know you’re only going to be able to do that for a certain amount of time. It sounds like you really help them have other focus besides just how much money you’re making and what team are you playing on, to start broadening their horizons while they’re in their peak so that that they can transition into possibly being a co-host of a talk show or whatever else they might want to do from being known for more than just being the athlete. Is that a fair statement?

We’re trying to stimulate both the most positive values and priorities with them, but also prepare them for a second career that will be just as fulfilling as what has come before. We have three players who are now minority owners of actual NFL teams, players who own parts of luxury hotels or head of construction companies, or run hedge funds or very involved in broadcast. No longer the greeters in front of Las Vegas hotels; these athletes have brand. Everything they learn in the athletic experience, whether it’s pushing off present gratification for future success, self-discipline, mastering complex information and applying it in real time, courage under pressure, team work. All these skill sets are completely applicable to business, media, coaching or anything else that they like to be involved in.

Self-discipline from sports can be transferred to business career and this concept of courage under pressure, which you will face whether you work for yourself or someone else, that there will be pressures and you have to dig deep. If you have that frame of reference, I think that brings a lot of credibility to what you’re doing. You wrote a book called The Agent: My 40-Year Career Making Deals and Changing the Game. Tell us about some of the stories from that. 

TSP 135 | Show Me The Money

The Agent: My 40-Year Career Making Deals and Changing the Game

What I try to emphasize there is that the real skill in life is listening. People think that it’s suasion, but allowing a space and trust to be built up so that you can peel away layers of the onion in another human being and be able to understand their deepest anxieties and fears and their greatest hopes and dreams, and bond with them at a deep level and see the world through their eyes. If you have that skill, you can gracefully navigate life. It’s not as important what your feelings are in the situation, whether it’s recruiting someone, negotiating with someone, trying to get to a solution. Being able to understand the other person’s priorities and goals so you can craft a win-win scenario is critically important. It’s listening and being able to draw out another human being and understand not what they’re telling you on the surface but what their real deeper agenda is, and seeing if you can figure out a way to accomplish your own goals while doing the same thing.

I negotiate contracts and the time frame of it is critical because there’s nothing that the athlete can do better with his life than to play for that team. Time works against us; time to be late to training camp or time to miss. The point is that what you fear is deadlock. When two people feel like somehow good faith has been offended, they can lock their positions in and self-destruct and just takes over. They’ll lock in and lock in. When you think things can’t get worse, in a deadlock they always can. The question is, how can you work out a paradigm of cooperation and not have that break down, and to be able to somehow identify points of commonality where resolution could be reached?

You’re the renowned expert at negotiation. I think people would be surprised to hear that your real tip on negotiating is not being typically aggressive but the listening and the empathy skills that you just iterated there. I think that’s a nice a-ha moment for everybody to say, “If I really want to be a good negotiator, I should become a good listener.” Am I on the right page there, Leigh?

Yes, and you also need to understand how to ask the right questions that could draw people out. The same skill is true in recruiting, in trying to make a sale, in every area of business. Making the assumption that you’re pre-set pitch is going to be effective assumes that every human being has the same priorities and the same personalities. What’s really important is to focus in critical situations that someone have the power to exclude all extraneous stimuli, to ignore the fact that the consequence of not making a sale or not negotiating this deal may be apocalyptic. To be able to tune that out, tune out extraneous noise, focus on the moment and elevate your level of performance to come through in those situations. So often in life, there will have been mistakes made or the situation may have grown dire. You may be facing pressures or temptation to quit or to see the situation as dire and unsolvable will be there at all times. It’s having the ability to tune all that out and focus on solution and be creative and perform in that moment that’s critical.

[Tweet “Ask The Right Questions When You Negotiate”]

You are the “real life Jerry Maguire,” super-agent, that’s what your book is really about. The director, Cameron Crow, of Jerry Maguire said you were the primary inspiration for that. Did you ever have a client ask you to do what they did in the movie about “Show me the money” and all that stuff?

No. It’s funny. Cameron called me up back in 1993 and asked if he could shadow me to pick up the atmosphere for a film that will involve a sports agent. He followed me to the 1993 NFL draft where I had the first pick. He came up to a press conference in New England with Bill Parcells, went to USC Pro Scouting Day, came for a week to league meetings, came into my office, Super Bowl parties, games, and I told him lots and lots of stories. The line, “Show me the money,” comes from a player named Tim McDonald who was out in Palm Springs. It was at the league meeting as I was showing him off to different teams to try to get them to sign him as a free agent. One night, Cameron went up to Tim’s hotel room and said, “What are you looking for in this experience?” Lou Dobbs in Moneyline was on in the background and Tim gestured towards the screen and said, “I’m looking for someone to show me some respect. I’m looking for a team to show me some winning. I’m looking for a team that shows me some money,” and Cameron wrote, “Show me the money.”

I love the story behind that. It’s such an iconic moment. Thank you for sharing that. You also have a story about how you decided to pass on representing Peyton Manning. Can you tell us about that? 

That was one of my genius moves of the 20th century. There had been a situation where there were two quarterbacks coming out in ’93, Drew Bledsoe and Rick Mirer. Everyone thought Rick Mirer was more prolific in college, Drew was a better natural talent. I took Drew, we went on to Pro Bowls and to play in the Super Bowl, and Rick was not quite as successful. The same paradigm looked like it was going to happen in 1998, and that was Peyton Manning and Ryan Leaf. Ryan Leaf was really gifted athletically. Peyton Manning was really prolific in college. Ryan had to decide earlier, I took him. Peyton goes on to be one of the all-time great players and Ryan had a very fore-shortened career.

Do people pitch to you all the time to represent them? What do you look for when you hear a pitch like that?

I’ve represented in football 61 first round draft picks and the very first pick in the first round eight different years and in baseball practice, basketball practice. You’re looking for a talent level that’s going to enable our practice to stay on the cutting edge and give us role models who will really make an impact. In football, we have a quarterback-centered practice. This year, we have a quarterback Patrick Mahomes II who’s shooting up the first round with Texas Tech and last year. Paxton Lynch who hopefully will start this year for the Denver Broncos. You look for good values, first of all, and you’re looking for someone with a sense of self-respect, who understands the importance of nurturing family, who wants to be part of the community where people care for each other. Then you look for a work ethic and then that capacity, the ability to transcend the moment to perform in critical situations. All those things. Hopefully you have a strong family there but that’s sometimes not possible to have a nuclear, two-parent family. You look first for the character and personality qualities. There are many talented athletes. Every time you represent someone, it involves cutting up a little bit of your own life, which you have a finite amount of. You want to make sure you’re spending it on young men or women that truly you’ll be proud of.

What’s interesting to me is you not only represent the athletes but news anchors and sportscasters and sports coaches. I assume that same filter applies to them as well, yes?

It does. If you’re meeting people who have a heart, compassion, social conscience, a sense of a larger world, they’re going to use their craft and they’ll do more. They’ll find a way to use their profile to make a real difference. You get the same impact from people who are on television really in any capacity. Some of the coaches are as well-known as the players. They have longer careers, so do the news anchors, than athletes do. Again, every form of celebrity affords the opportunity to influence other people. A news person can do it through a well-crafted story or a story that’s got some passion or illumination to it. I think it’s all equally compelling.

The other thing that you’re doing that I’m really interested in is this creation of a virtual studio where you’re producing sports themed movies and TV and video games. Certainly, in the startup world, these internet apps and fan interactivity, the second-screen involvement, is really the hot button right now. Can you tell us about how that came about and what you’re doing with that?

We learned very early that the representation of athletes took us into the creation of content, and being involved with technologies. Back in the 90s, I have developed a company called Athletes Direct which was football, baseball, basketball players’ writing weekly diaries talking about their charitable foundation, e-commerce application. This was when you still have to go to AOL to get on the internet. We germinated it and sold it a couple of years later for a massive multiple. These projects where we can develop a sports themed reality show, a competition show, are dramatically scripted where we can consult on a sports themed motion picture. Then in technology, can we find the next new app, the new startup that brings fan experience closer, the next new website, the next new way to deliver content and be an adviser to that?

TSP 135 | Show Me The Money

We have a group called Steinberg Ventures that looks at all forms of new technology development and looks for good startups.

I’m an adviser to a company called Desk Site where if you live in Los Angeles but you grew up in New York, you want to follow the New York Giants football team, you can get 30 hours of high-def over your computer, all the highlights, all the analysis and everything. It’s just like you were there. It’s got a demographic feature where you can tailor the advertising on a subscription basis to women or men or younger people or older people, as opposed to the scatter shot that happens when they’re advertising trucks on NFL games to an audience that’s 41% women. It’s a new concussion helmet that uses coil and compression to attenuate and dissipate the energy that comes into the head by as much as 50%. We have a group called Steinberg Ventures that looks at all forms of new technology development and looks for good startups.

Let’s talk about one of your other passion projects besides preventing bullying is working on concussion awareness and prevention and potential cures. You touched on that a little bit with Steinberg Ventures. Using technology to prevent some of these head injuries, obviously it’s a big topic right now. If the damage has occurred sometimes it doesn’t show up for a while. Anything else you want to tell us about what we can do as people who care? Is there a charity or something?

First, awareness. The reality of the situation is that, for example the sport of football, every time an offensive lineman hits a defense lineman with the inception of a play, it produces a low-level sub-concussive event. It turns out that an offensive lineman can walk out of the game with 10,000 sub-concussion events, none of which has been diagnosed, none of which has worked. It could happen as many as 10,000 times. The aggregate will almost certainly produce ALS, premature senility, Parkinson’s, chronic traumatic encephalopathy and depression. This danger exists not simply in pro-football or college and high school, in field hockey, in AYSO, in hockey; anything that involves collision. People need to be aware of that and understand that the collisions and concussions have especially devastating effects on younger people.

Looking at the age someone should start a collision sport, it takes longer for that adolescent brain to heal. Keeping track of the amount of concussions, finding ways to play collision sports more safely, protective helmetry and other devices. These are all things we need to focus on. We know that athletes who play collision sports may turn 40 and have problems bending over to pick up their child. It’s another thing not to be able to identify that child. We’re talking about the brain, which makes the concussion issue different than any other type of injury.

[Tweet “Show Courage Under Pressure”]

Any final thoughts, it’s just been a pleasure having you on, that you want to leave the audience with?

My dad used to tell me, when you’re looking for someone to fix a problem or deal with a situation in the world, and you keep waiting for the amorphous ‘they’ or them to fix it: the government, older people, someone else. He would say to me, you can wait forever. He would look at me and say, “The ‘they’ is you, son. You are the ‘they’.” It’s about individual responsibility and people believing that they have the power to affect the world around them and make a difference.

Don’t wait for somebody else to make a difference. You do it. I love it so much, Leigh. Thanks for sharing your insights and even the secrets of where, “Show me the money” came from. It’s been a fascinating interview. Thanks again.

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How To Pitch To God with Andrea Gold

Posted by John Livesay in podcast | 0 comments

06.11.17

 

Episode Summary

TSP BE01 | Pitch To GodToday’s guest on The Successful Pitch is Andrea Gold. She’s been in business for over 30 years as an entrepreneur, running her own speakers’ bureau. She really knows what it takes to be successful and to not give up. She has a great expression in here about how to pitch to God. She said, “Don’t be afraid to ask for what you want when you’re negotiating with somebody because you might just get it.” She tells a wonderful story of how that happened for her and one of her clients. She said, “When your power of purpose is bigger than your fear, you then can feel the fear and do it anyway.” I just love that so much. She’s got some real insights on not just being clear with what you’re communicating but tapping in to the unseen factors that make somebody want to say yes. Enjoy the episode.

 

Listen To The Episode Here

 

How To Pitch To God with Andrea Gold

Today, I’m honored to have Andrea Gold who’s an entrepreneur and President and Co-founder of Gold Stars Speakers Bureau. She’s been in business for nearly 30 years, which is not an easy thing to do. It’s based in Tucson, Arizona and they provide speakers and celebrities worldwide. She’s also the co-author of several books including The Business of Successful Speaking: Proven Secrets to Becoming a Million Dollar Speaker and Authors Who Speak Sell More Books Using the Platform to Profit. She’s going to share some practical tips and stories so that you can figure out how your dream of becoming a professional speaker or a successful entrepreneur can happen. She really is focused and knows how to provide solutions for corporations and trade associations and governments. She has personally booked thousands of presentation deals worth tens of millions. In addition, she’s negotiated a lot of book deals for the speakers. It’s just one success after another. She belongs to a MeCo Meetings Community with more than 3,500 meeting planners, which is really important because that’s who books the speakers. Before that, she has a degree in Journalism. We’re going to ask all about this. Andrea, welcome to the show.

I am delighted to be here.

One of the things that you and I share is this passion for being a life adventurer and continually to grow and focus on ourselves. I think that really is what makes somebody a good storyteller. If you’re a good storyteller, I think you tend to be successful in presenting and pitching. Would you mind taking us back to your own story of origin, if you will, when you were in journalism school and becoming a journalist and then said, “I think I’m going to do something else besides Journalism.”

TSP BE01 | Pitch To God

The Business of Successful Speaking: Proven Secrets to Becoming a Million Dollar Speaker

It actually goes back a little before that. I went to a very unique liberal college and it went bankrupt while I was there and I was just a freshman in my first semester. I had to make a very quick decision. Northern Arizona University in Flagstaff was taking in us refugees. I had to declare a Major, and in the original college, we didn’t have declared Majors so I declared Journalism because I like to write. From there, I actually did very well in Journalism. I’m still in touch with my teacher by the way, who’s 80 years old now. He’s wonderful and he’s still working. The guy is great. I did well in that. Then afterwards, I ended up searching. I went through a whole period for a decade and a half of looking for what to do. I did not fit the mold of climbing the corporate ladder. That was not me. I wanted more freedom and I didn’t want to be stuck in a room. I ended up working for everybody all over the place. I even did an archeological dig overseas with the Israel Museum. I spent time in India on my spiritual quest. I worked in places, I worked in Crete. As a matter of fact, I was thinking about you with your pitch. Probably you talk about pitching and selling, but for me, one of the funniest pitches that I ever did was in Crete, Greece.

I was with a British friend and we met there. We both wanted to get some labor, some work. We went to this courtyard that looked like an amphitheater and there was a bar with all these agricultural farmer guys. They were sitting in this amphitheater where the seats go up, up, up. We were on the bottom as if we were the entertainment. We stood there and I practiced the word for work. It’s douleiá, something like that. The British guy, being a guy was going to say this, because it was more of a masculine world. He freaked out and he got very scared. I stepped up to the plate and I said, “Douleiá,” and I pointed at him and I. The farmers just looked at us like we’re crazy. One of them, actually in a very strange way, asked us to come over. We didn’t understand anything. He didn’t know any English, we didn’t know, any other Greek. There was a bartender who helped us to a deal. I don’t drink but he gave us some Ouzo. That was to seal the deal and I didn’t want to be disrespectful, so I had it. We got the deal and we ended up doing labor which was cucumbers, peppers. We had this beautiful setting in a plastic arena. It was like a greenhouse but very large, it was professional. It was right next to the water. It was just beautiful. It was October and we did that for a while. I actually worked unofficially as a laborer. It was great. Let me tell you, you can only do so much crouching in a day. I have great respect for these people.

The big takeaway from that is if you want something, whether it’s to pitch to get hired, pitch to get someone to join your team, pitch to get a new client, you must be passionate and committed to the outcome. The way you said that word in Greek, let them know, “I’m not taking no for an answer.” It’s really interesting. From all those adventures, how did you get into, “I’m going to help speakers get booked and I’m going to teach them what to do?” How did that all come about?

There were many jobs in between. I was in Tucson, Arizona at that time. I’m still here. We were helping a person named Dottie Walters who had a speakers’ bureau. I was asked by a TV anchor friend. I was doing little local booking of my husband who speaks and he’s an author and this TV anchor. I didn’t know anything about the world beyond that. I didn’t come from a meeting planning background. Dottie Walters was coming to town, the TV anchor said, “Could you help her get some bookings to promote her book?” I said, “Sure.” I didn’t know this woman. I didn’t know anything. I didn’t even have contacts in the media locally but I actually made them. I booked her on TV and radio and newspaper. We went around all day and we drove her around. At the end of the day, she said, “You should start a speakers’ bureau.” I said, “Okay, what’s a speakers’ bureau?” I really didn’t know. She’s one of the originals. From there, my husband and I started a speakers’ bureau not really knowing what it was. The first two years were, if you were to look at our Social Security statements, they looked like zero. I always say we had a minus zero income for a few years. Any success that I have now did not come from straight success. They say that your instant success may take twenty years. Mine took a few years.

There’s a spiritual side to the story, call it a miracle or whatever you want. Long story short, we were down to our last month of mortgage payments that we could afford to pay. We had started the business out of our pockets. I said, “This is it.” It was New Year’s Eve. I had a little talk with God and I said, “Look here,” and I’m very direct. It’s a pitch to God. I have no shyness about this whatsoever. This is part of our life. I said, “If you want me to succeed, then you need to make this work because I’m doing everything I can. Otherwise, I’m going to have to get a job.” It was New Year’s Day and there’s no work. We had gone to see a consultant, just to back pace a little bit. We saw a consultant a few months before. We gave him thousands of dollars and he gave us advice. We implemented a few things but nothing had happened yet. New Year’s Day passed, the first work day began and we started getting calls. It was just like that and we took off from there.

[Tweet “”How To Pitch To God””]

Do you think some of it has to do with the analogy of planting some seeds and sometimes it just takes a while for them to come to fruition and you just have to trust the process as it’s happening if you’re doing everything you can?

No, it was so time specific. I would say the consultant’s work in what we did, we had done a mailing. That specifically, it wasn’t the two years of work. It was specifically the mailing which back then was a good way to do it. I wouldn’t do that today but it worked.

It’s finding something that works. If what you’re doing isn’t working, you need to pivot and find something else to try as opposed to just giving up. Do you have a story of a speaker knocking it out of the park, exceeding your expectations, the event planner’s expectations that you could share with us?

Let me just tell you one that just happened that really made me happy, and there’s a lesson in it for those that are listening. We’re talking about pitching and stories. I have a client that I’ve worked in New York State for a very long time. They book a number of speakers a year. We have a real friendship that goes back a long way. I won’t mention names but they wanted a very famous football player. It’s somebody that’s revered in the industry; retired but still revered. He put down all the things that he wanted and there were quite a few things he wanted from this person. He wanted an appearance and he was going to go a certain restaurant and then he wanted him to speak the next day. He’s like, “Do you think we could do all these?” I said, “Here’s the lesson, if you don’t ask, you don’t get. If you ask, you may get.” We just found out that we got. He got everything that we asked for. I’m very pleased about that. We have a happy client. It’s going to be a year before we know how the ball player does. Does he hit it out of the park or kick it out of the park? We won’t know yet but I’m sure we will.

[Tweet “Don’t be afraid to ask for what you want.”]

I had another one too. You talk about the wins and the losses in the business of pitching, which is really selling. I had another one recently which really, you could call it a win-loss-win. A win is we booked this celebrity speaker to begin with and the client was so excited. We got who we wanted. Then I get a call that the speaker had to have an emergency surgery. It was very sudden and unexpected. We had a loss and the meeting was in five days. Bureaus deal with this. This is keeping us on our toes. It’s rare but it does happen. We’re good backup when it does happen. I immediately spent my whole weekend working on who’s going to take over and I pitched. My heart is all about who are we going to get to replace this speaker. Who had a certain industry specific focus and a celebrity no less? We found the right person. I found a few different choices but there was one that stood out and he was also available and willing to do it at the same fee, because you have that prospect to consider. The client actually thought it was a great idea, vetted it out and booked that person. The person just spoke yesterday. It was a win for everybody. That was very dramatic. It was a huge amount of time, just a big time block all at one time getting it done. That’s what you do as an entrepreneur. You have to think on your feet. You’ve got to be there and you’ve got to back up your client and back up your speaker, in this case.

Also have some resources to have a Plan B in case Plan A falls apart. I think that’s where a lot of people don’t do the planning. Obviously, your years of experience in having those kinds of connections pay off. It’s also willing to work hard. You were willing to work over the weekend to find the right choice in the last minute.

Just put yourself in their shoes. If you were the client and your keynote speaker all of a sudden is not coming and you had promoted this person, I can’t even imagine not having someone. I gave options somewhere in the industry and somewhere outside the industry but they were all excellent and they were all good choices. We actually found somebody who is an industry specific, perfect person and a celebrity. It was right on the money. It was very fortunate. It doesn’t always work out that well.

It’s nice to hear when it does. The other thing I really take away from what you said, Andrea, is you put on what I call the empathy hat. You put yourself, in this case, the client’s shoes to imagine what it would feel like and that’s what motivated you. I know for myself when I do that, when I’m pitching, it makes all the difference in the world. It’s no longer about, “What do I need? What do I want?” It’s, “What do you need? How can I help you? It must be so frustrating. You must be so stressed out right now thinking this isn’t going to happen. How can I help and solve that? We’re in this together.” That combination of empathy and collaboration is really a recipe for success.

[Tweet “Empathy plus collaboration is a formula for success.”]

I was thinking about what we were going to end up talking about because we’re organic and we’re flowing here. Your point exactly is what I wanted to say. You said it, it’s your story but it’s my story too. Because I do work from caring and I’ve been accused of caring too much. I’d rather care too much and do a great job than be accused of being just not fully there for the client. There’s no in between. You either are there or you aren’t there. Your actions will speak louder than your words. What you do and you don’t do for your customer will show. The one thing I would suggest in any kind of conflict or confrontation or any kind of problem situation you may have, doesn’t come up often for me but occasionally, communicate. Always get on the phone and talk because there may be a misunderstanding.

Another piece of advice is never assume. We could apply it to this never assume that you know everything that’s going on. You don’t know why a person feels as they do. You don’t know why they think as they do, so communicate. That’s just a little thing. Never assume that people know everything just on the details when you’re talking about a meeting. Never assume that they know everything about the speaker you’re proposing, in my case, or about whatever it is you’re selling: your product or your service. I feel very strongly about the whole entrepreneurial aspect. I’ve been in business a long time. I think there are some things that either a person knows or they don’t know. There are certain things you can’t train on. I know from training people. You want to hear a little test on sales?

Sure.

I had somebody who was excellent in customer service. I had hired him and he was a great guy. He was smart but he could not get the information that we needed. There were five points that we needed to make sure that he did a good job such as, “Is there a budget for a speaker?” Important, relevant, quick to get things; it’s a quick question. He couldn’t do it. I wrote up a list, “Here are five questions. I want you to just read the questions and fill in the blank at the end.” I gave him a bunch of copies. He could not do it. He was not a stupid guy. It was just how brains work. Either you could do this or you can’t. Your state of being is actually going to come through. This is the core of everything I stand for. Who you are, your integrity, your values, your clarity, that’s a biggie. Your clarity about how you see the customer’s needs and how you can fulfill them is really what makes or breaks a very good salesperson.

I agree. I have found that if you cannot be clear and concise and if you confuse people, they always say no. They won’t admit that they’re confused, they’ll just say no and you don’t know why.

TSP BE01 | Pitch To God

Authors Who Speak Sell More Books

That’s true. I’m going to take it a little step further though. When I talk clarity, I mean awareness. I mean your intuition. I mean all those unseen factors that you may not even realize you use but we all do. Who doesn’t walk in a room and feel goosebumps and something’s not right. We all have this ability but you can develop it and you can use it to help people and that gives you more sales. It gives them exactly who they need or what they need depending on what it is you sell. I feel really strongly about it. Talk about personal growth, the more that you can develop yourself and the more powerful, clear, aware person you are, the better and more effective salesperson you’re going to be. Your pitch is going to be very in-tuned. It will be pitch-perfect.

That goes to your whole branding, your tagline: “Our word is gold.”

I have a story about that. While we were new, we hired an advertising person and it costs a few thousand dollars for what we were doing. It had to do with their catalogue, etc. in the old days. He was worried about the bill. He said, “I want to make sure that you pay us.” We’ve never reneged on a bill. We have a perfect record. I said, “Our word is gold. You will have your money.” Of course, we paid him. That stuck. He looked at me and he went, “Oh my God, that’s your tagline.” We’ve never changed it. Integrity is number one. There is a great temptation in business for sales people to sell what gives the salesperson the most income instead of giving the customer what it is they really need. In my world, what that looks like is not to push the most expensive speaker on a client when someone else might be a better fit. To have the ethics, the integrity to suggest both, let them choose but you can say this one really is what you’re looking for.

They trust you to have their back because everyone’s afraid of making the wrong decision.

There’s so much fear in the world of sales. From the salesperson’s side, they need to get rid of it. I want to add one thing. When I was starting out, I’ve never had training on sales in the beginning. I’m now around all these sales speakers so I learned just by being around the materials and through the years. When I first started, and if anybody is listening who’s just starting out in business, I want you to hear this well. I was terrified. I wasn’t the most fearful person. I’m not a wallflower. I had no training of how to approach people, what to do and how to make a living out of it. I did it anyway. I have a saying, “Face your fear and do it anyway.” I would get on the phone and I’d do it and I was terrified. I’d cry sometimes. People weren’t always nice but I got over it. I realize they don’t know me. It’s not personal.

I’m a big believer in not taking rejection personally. The way I have found to do it myself in my own sales career is to realize that just because they say no to me and no to what I’m selling, doesn’t mean I’m not valuable. It certainly doesn’t mean my product or service, or in your case, your speaker isn’t good. The Four Agreements says don’t take anything personally. To apply that to selling, that’s the number one reason people don’t go into sales or burn out is because they’re taking all the no’s really personally. If we can help people in this episode, that’s one of my big mantras when I go out and speak is, how to not take it personally.

When you go to a restaurant, they give you some sorbet sometimes to cleanse your palate in between courses. I said, “You need a sorbet to cleanse your mind from the no before you go talk to somebody else.” We go in with that no energy and that no mindset, “The next person is probably going to say no too,” you’ll just be a self-fulfilling prophecy. If you can cleanse the palate in your head by calling someone who’s happy with what you sold them or offered them and just took some customer service follow-up before you make that next new attempt to get business. It really makes a difference on the energy that’s exchanged between people.

I totally agree with that. That goes back to my whole thing about personal growth. You must feel very good about yourself despite whatever the outer influences may be. You will get run over occasionally only if you allow yourself. I’ve had moments where I can’t believe that these people are doing this or saying this. I’ve caught clients lying to me. I knew they were lying. Once in a while I’ve called them on it because for me that’s horrendous. It’s like pick your battles. What I’ll do in a case like that is you should have a thing, a device, whether it’s a book or a saying or something where you could come back and ground yourself again. For me, I have a hummingbird feeder outside of the office and I look at the birds. I actually go out there and they know me. I talk to animals by the way, and they do respond. I don’t know if it’s vibes or I’ve got some of the language down, who knows? Anyway, I’m pitching to them.

It worked in Greece and so now it’s just a different language, right?

Yeah. Anyway for me, the birds it’s nature, it’s away from people for a moment. I love people but it gets me back to what’s real. You really have to a good self-esteem. That comes back to your own personal growth. One more thing I want to add is your purpose. When you get on the phone and you’re pitching or you’re selling, the main thing should be, “How can I help this customer?” That’s the number one driving force. If it’s anything else, you’re going to come across as false. You may do okay but part of you is going to know you’re false. Some part of them is going to know you’re false too. Let’s be direct, cut to the chase, be authentic.

Something I like to do is have fun. I will tease my people mercilessly if we have a good relationship and they understand. I make sure they understand I’m teasing. We have a lot of fun. It’s just my nature and I do it for my own entertainment as well as whatever fun we could have in the process of doing business. If you were asking, “What’s your pitch? How do you stand out?” I didn’t create this. It just naturally evolved as I felt more comfortable in selling. Frankly, I have a perspective on selling that selling isn’t selling at all. If you’re really helping somebody, it’s so much higher than selling. Selling is a contrived, pushing thing to me. This is something I’ve just arrived at through the years. You are hearing. You are listening. The best sales you could do is listen and then fulfill. Listen, ask questions if needed, fulfill.

What you just said that selling is pushing, I believe that storytelling is the new way to be engaging. When you tell stories, you’re magnetic. You pull people into the story as opposed to having to push your message out. That’s why I’m such an evangelist for teaching as many people as possible how to become storytellers. Then we get off that self-esteem roller coaster. We’re feeling good if we get a sale.

Something I do, has nothing to with sales at all, my nature is to share as much as somebody wants to hear. I’m in heaven that we’re sharing here. I’m happy for everybody who’s listening. I want you to get something out of this. I’ll kick your butt so you do. The main thing is we want to help people and we want to do the best we could do. That’s not sales. I share about travel adventures. I like to travel. I’ve had adventures. I’ll share that and the insights I’ve gotten if anybody wants. I’ll even share the photos. The pitch isn’t always directly about the product or the service. In a way, you’re sharing yourself. I guess that would be called selling yourself even though I don’t. Everybody I contact, I want to pull up with me so we go up together, rise up together, whatever that means; to be better together, to enjoy together. There’s no separation between us. Even though we think we’re all different and separate, that’s only our ignorance frankly.

You said something earlier I want to go back to. We agreed that the confused mind always says no. Then you said it’s not just the clarity, it’s the energy exchanged. There are some unseen factors like your intuition. I talk about there are three unspoken questions people have when they’re listening to you pitch. I want to go through each one and just get your quick take on it. The first one is people are asking themselves when they hear you pitch, “Do I trust you?” What is your tip on how people can come across trustworthy even if it’s not in person? What is it that people can do either in person or on the phone to become more trustworthy?

TSP BE01 | Pitch To God

Another way that you could develop trust, to answer your question, isn’t necessarily in that first conversation. It’s how you follow up.

It’s a tall order to communicate yourself to another on the phone and virtually, and in today’s world, by email. That’s even harder. I know some speakers do a pitch themselves by video and they’ll do a personal pitch. That’s an idea that you could do because you’re making an effort. That takes time. You’re sharing of yourself. A short video pitch in today’s world, I’m talking about twenty seconds, can really convey a sense of you. Also, telling a few stories if there’s time of how you’ve handled a similar request before. It shows credibility, so there’s a trust there. Things will come up depending on the case by case that you could share. It could be just a phrase that you throw in that shows, “I’m there for you.” I’ll tell you one thing. My client, the one where I just provided the emergency speaker who just spoke and said, “I’m going to write you a huge testimonial letter.” I’m very grateful for that. He’s so grateful and he’s so happy. There’s a huge trust. Another way that you could develop trust, to answer your question, isn’t necessarily in that first conversation. It’s how you follow up. Are you reliable?

It goes back to the integrity. If you say you’re going to do something, email someone, you do it. The trust thing really is a gut thing. It’s the fight or flight response, “Do I trust you? Is it safe?” Then we move up to the heart, which is likeability. That’s the second unspoken question that people have when they hear you pitch. I know empathy is a big factor in getting people to like you. Do you have any suggestions on how we can improve our empathy/likeability?

For me, since most of what I do today isn’t on the phone anymore, it used to be, your writing skills and how you approach somebody are going to be critical. I think getting on the phone once in a while is a good idea. I’d like to hear a voice once in a while. Not all clients have time to speak or talk on the phone. It’s good if you can. For likeability, for me, it’s teasing and also really genuinely having an interest in the client’s life. I look for common denominators. I’ve lived all over this country and I’ve done all kinds of stuff that you can’t even imagine. If you go to my LinkedIn page you’ll see I call myself The Woman of the World. I can say, “I was this. I did this for ten years.” I did an archeological dig. I inoculated turkeys on a farm in Israel in a kibbutz. I actually was in an active warfare. I lived in some bomb shelters. I’ve done all these things. I actually was a technical editor for the military. All these make connections with people because there’s either somewhere they lived or something they’ve done or somewhere they’ve travelled that I’ve probably done too. We have that common denominator, that is a huge likeability factor. I find it a lot of fun. To me, that’s totally the reward of doing this business, is the connection.

The big takeaway here is people like people who they have fun with. They think they’re going to have fun if they hire you as a speaker and you’re going to make the audience have fun, that’s great.

I just want to say with the fun part, you’ve got to be grounded too.

Now we go from the gut to the heart and then to the head. The third part of this unspoken question is, “Will this work for me?” I love to tell stories that pull people in so that they can see themselves in the story of someone else that you helped, an audience or another client. Once you get people to be in the story with you, then that’s answering that question, “Will this work for me?” What are your thoughts on that order, first of all? Do you like that we don’t start off with the numbers and then try to get people to like and trust us? We start off with the trust; the gut, the heart, the head?

I don’t know if there’s one order. I like what you’re saying, how you’re clarifying each point, but I think it comes in a flow and in all different orders. I deal with clients that they just want to cut to the chase. Then we get to know each other. There are people that shocked me. They seem so serious, then I do a little teaser thing and they just totally warm up.

You bring out the best in people, don’t you?

I don’t know, or the worse, but I have fun. The main thing is we get business done.

[Tweet “The power of your purpose is greater than your fear.”]

Are there any last thoughts you want to have? The time goes so fast with someone like you.

For everybody listening, this is what I want you to hear for the entrepreneurial aspect. I already told you face your fear and do it anyway. It’s okay to be afraid. Once you do it, that’s how you overcome fear. It’s okay to be afraid. It’s not a weakness. The next part, and probably the high-level aspect thing I want to say here, is the power of your purpose is greater than your fear. That’s something that has helped me through the years. That’s my own quote. I seem to come up with these quotes. The power of your purpose is greater than your fear, and I want to leave you with this, life is an adventure. I want you to map yours out today. I’m talking about your work, your play, your whole life because it’s going to go by very fast. I want you to make the most of your life, have fun.

We certainly had fun talking with you. If people want to follow you, you have your website of Gold Stars Speakers Bureau, GoldStars.com. On there, you can find all of your wonderful products including The Business of Successful Speaking. People can follow you on LinkedIn and Twitter, @AndreaGold. I can’t thank you enough for sharing your insights, your passion for life and most importantly, your authenticity has really come across. Your authenticity is really something that stands out with this empathy and collaboration as the secret formula to success.

Thank you. Here’s to your success.

Thank you so much.

 

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How To Be A Winner with Mark Faust

Posted by John Livesay in podcast | 0 comments

01.11.17

TSP 134 | Mark FaustEpisode Summary

TSP 134 | Mark FaustToday’s guest on The Successful Pitch is author Mark Faust who has written several books about high growth leverage. His new book is called Winning Strategy. He has a really interesting look at the strategies that happened during the recent presidential election and how you can see what worked and didn’t work and more importantly, how to apply it to your own business. He said there are really three keys to having a great strategy in anything. One is a vision, two is a focus and the third one is something called points of divergence, which he goes into great detail explaining how to double down on what you are already doing to get people to really understand your vision, your focus and more importantly, have the strategy that gets you funded or gets you a new client or gets you to win in any area of your life. Enjoy the episode.

 

Listen To The Episode Here

 

How To Be A Winner with Mark Faust

Today’s guest is Mark Faust who’s an author of multiple books. Since he founded Echelon Management in 1990, Mark has consulted with literally hundreds of companies, CEOs and owners. He’s also spoken to hundreds of organizations on how to foster and accelerate growth, which everybody needs. He’s interviewed and worked with Fortune 500 CEOs as well as many turnarounds. He’s referred to as the Doctor of Strategy. He’s one of the nation’s top turnaround and growth gurus. He’s worked with companies such as Procter & Gamble, IBM, Apple and John Deere as well as some smaller held organizations and governments, and even non-profits. He’s worked with an extensive number of family-owned and multigenerational businesses, which had its own set of challenges I’m sure. He’s been the adjunct COO, VP of Sales on many company Boards. He has worked with leaders of successful growth companies, knowing he can raise their bars. He’s also helped those that are struggling. Whether you’re struggling or at the top, you definitely need to read Mark’s books. Your opportunity to heat directly from the Doctor of Strategy is right now.

Mark, welcome to the show.

Thank you, John.

I’m always interested to hear from my guests their own little story of origin. This is your third book, I believe?

Yes.

Before you became an author, you obviously had to figure out what made you so good at figuring out growth. Can you take us back to did you always know you wanted to be an author? How did you get to where you are?

TSP 134 | Mark Faust

Growth Or Bust! Proven Turnaround Strategies to Grow Your Business by Mark Faust

Actually, it’s an interesting story about how I always had this gut feeling about being a consultant before I even knew what the word was. I’ll never forget, I went to a parochial school where the priest would ask you in sixth grade whether you feel called to the vocation. One particular time he said, “I’m going to talk to you all one-on-one and ask you, so be ready in the weeks ahead.” I thought, “I better think about this.” I never forget going back in to the church to sit down and I was like, “I can’t think of any one business but I’d love to work with a bunch of different businesses helping them grow. It wasn’t until I was literally within a year becoming a consultant. I met my first boss in college. He and all his colleagues were in their 50’s with their MBAs and he was in a class I was in. It was there that I actually got my first and only job. I was a consultant for a few years. Eventually, he helped me start on my own. That was a quick overview from ten years old up to 21 up to here we are today.

I’m always fascinated by that. Some people at a very young age know, “I’m going to be an actor,” then he becomes Jim Carrey or something. “I’m going to be an engineer like my dad.” Something like this is not something that you typically see modeled for you and yet you somehow were able to imagine your future and you’re doing exactly what you thought you’d be doing, which is not always the case for someone. Before we jump into your book, Winning Strategy, which is this whole concept of the turnaround mindset and even looking at other non-business relationships of how do people come up with a great pitch including what happened in the last presidential race even. I want to talk about your other two books as a starting point because I think it’s always again, for me, really interesting whether you’re looking at an artist, and I think of authors as artists, and you look at their early work and how that lead to this, lead to this. Would you take us on that just brief journey of here’s my first book, here’s my second book and now, what you’re going to learn in winning strategy, combines all two or it leaves off where the other one stopped.

The first book proposal I sent out I have four publishers expressing interest which is atypical. The unique angle a couple of them hit on was the turnaround mindset. They said nobody writes about that. I ran with that. It was my first publisher being Career Press and they said, “Let’s accentuate that angle. It will be unique and you’re going to own it.” Another interest was I had several great mentors who were turnaround CEOs. I found the way that turnaround CEOs looked at growing any business to be very unique from any typical consultant’s approach to growing a business. The turnaround CEOs have to deal with the most dire of conditions. When they’re put in the healthy environment, they still use a lot of the same tools.

That built the framework of my experiences and what I would propose to do is interventions with clients, and then eventually the outline of Growth or Bust!. Growth or Bust actually had a little bit of different title. The second title is High-Growth Levers: How to Turnaround Mindset Propels Your Company. The first one is Turnaround Strategies That Can Grow Your Business. Those were the first two books. The High-Growth Levers has just come out here in early 2017 and we’ve had a lot of success with that. Because of the election and I just started to analyze what was being done and what was not being done and what blew my mind. Let’s look at the election with an apolitical view. Let’s try to be as subjective as possible. It’s very hard because our emotions get involved in politics. As a strategist, we have to do this in business.

Emotional decisions are a big factor in whether you win or lose an account. In order to learn, you have to pull back a little bit and just say, “I may not like it or I may be thrilled but I’m still going to see what’s right and what went wrong so I can use it in my own life.”

We saw so little of that, John, throughout the election before, during and after. Especially in the media, they try to analyze, they come up with the reasons. A lot of the political walks come up with their reasons. In reality, and as I was writing the book Winning Strategy using my seven aspects of strategy as the outline, it hit me how excellent and I was seeing this beforehand. I did predict, in fact, I had an article in the Cincinnati Enquirer back in March of 2016 where they asked me as a businessman to analyze the election and make a prediction. I did and I called it. I got some flak for it but I thought objective, apolitical view in a Socratic approach in the article. Bottom line, I saw the elements of a good strategy being at play and I’ll boil it down to three words. Rather than the seven aspects, you could look at strategy as just having three key legs. One is a vision of the future, ideal, improved state. Two is areas of focus or intensification of focus. Three is points of divergence. Especially in that last one, we saw Trump played that element of strategy out better than those anyone in memory.

[Tweet “Vision, Focus and Points of Divergence are key to winning strategy.”]

Let’s digest that. One of the things in your book is, “The best strategy goes undetected,” and this whole concept of things being predicted. Even in the UK, with Brexit. They thought, “How can the polls be so wrong in both countries?” That same thing is true because businesses are always doing research, “Is this product going to sell? Do we need to lower the price? Do we need to change our branding?” Let’s start there with his whole best strategy going undetected. I’m really interested in that. I think that’s a fascinating way to start.

In a war, it’s critical for survival. A lot of generals know about the importance of either a fake to keep it in simple terms or an intensification of focus in a way that throws the opponents off. That’s actually one of the seven aspects of good strategy. My second aspect is intensifying focus. Having an undetected strategy, and I’ll just give you a couple of examples of how Trump did it, when he came out with the most colorizing of comments, let’s go back to December 7th of 2015. People almost overlooked the fact that that was Pearl Harbor and FDR was the president that there were a lot of people in prison camps because of their color of skin. Was there a reason for his choosing that? I leave that up to the reader. It was never really discussed much on either side. The bottom line is that was when he read his statement. That statement pushed people to one extreme or the other. A lot of generals like doing the same thing. They like to choose one side of the field or the other or to bring their troops together so that they can surround, if you know what your next couple of moves are.

Let me just ask you a couple more questions there because you’ve got so much great insight. Before we jump to the next part, my first question here is, do you have any thoughts on why people thought, “He’s not serious. He really doesn’t want to win. He just wants the publicity to start his own network.” Even when he got the job, these rumors still continue, “He doesn’t really like doing the job.” I’ve never heard of that ever happening before for many presidents. Is that part of his strategy do you think?

TSP 134 | Mark Faust

High-Growth Levers: How the Turnaround Mindset Propels Your Company
Book by Mark Faust

Perhaps. Let me go back in history a little bit, John. I don’t know if you remember Ross Perot running, the businessman. A lot of people forgot that he was at 39% in June and Clinton was at the lower mid-20s and bush was in his teens. He was actually ahead by quite a margin. It was only when he dropped out due to the fear of his daughter’s wedding being attacked by Bush’s minions. That’s literally what he said in 60 Minutes, and he dropped out after two months. A lot of people I think were doubtful of Trump because of the Perot tactic that happened with Bill Clinton’s first run. I don’t know. Again, I’m not a political wonk. I would only guess that would be one reason. Also, the fact that he’s such a showman and a show-off and could say such inflammatory things, I think that’s another reason why people think there’s no way he could possibly, when no politician has ever come off like that and won. I think those are the first two things that come to mind about the lack of people taking him seriously.

Let’s just talk about the strategy to win the nomination. Is it the same strategy to win the nomination as it was than they ultimately won the election or was there a difference?

Strategy is strategy. Yes, I think all the seven aspects were utilized throughout the primary as well as in the election. There are different tactics. Let’s start with the first aspect of strategy, which is identifying your primary source of leverage. There are ten different primary PSLs as I call them when I’m working with a client. It could be that your product is the primary source. It could be your selling approach. It could be the market that you have chosen. Usually, companies were discerning that. For the political realm, I looked at all 10 areas and I gave the pros and con in each one. For example, if it was a market focused PSL, Trump would have focused on the demographics through the Republican infrastructure and he would have tried to snap up as many of those and the market would have been big enough that he could have just won with that one focus.

In reality, he had to actually have a Hannibal-like approach. Hannibal had many different nations that made up his army that was outnumbered but still beat the Romans of the day. That was not his approach. Rather, what I think his primary source of leverage was his marketing and selling ability. I outlined in the book how he out Sunday interviewed, out evening news interviewed, tweeted in drama, not quantity. The Clinton team actually had more tweets but he had multiple followers. He had more power through that venue. If you go back and look through his history in business that he was a showman/salesman/marketing genius. He’d be a top 2% genius in regards to getting as much PR in media in Inc. as any other businessman could. In any event, I think the interviews tweets the rallies were in an aspect of selling and marketing effectiveness. He was able to get big numbers there, so he had that down to a science. Even his messages had an advantage and ability to go into the second aspect of strategy and have an intensification of focus which we can touch upon here.

You talked about the three keys of strategy is having a vision and painting a future. Let’s use a non-political example just so people can compare and contrast this. Do you have a client or company that has a vision that’s very strong, Starbucks, Apple, anybody you want?

Most people love Steve Jobs. I go back to his vision of a computer in every home when literally that was laughed at on the front pages of Wall Street Journal back in the early 80s. Why would we need a computer in every time at home? He saw and understood the future as did his team and he got them to understand if they didn’t, what the value of that and what would have to happen to get there, and that there would be a lot of pain and innovation that would have to happen to get us there sooner. They did it. With me and my best clients, I have a client in the agricultural world. They make application equipment and they went ahead of it. He had a vision, the third generation owner of being the Silicon Valley of the application world. He became that and was bought out by John as a result. Creating that vision, communicating that vision with passion and it’s got to be a vision that people will identify with and have a raise in depth or a higher purpose ideally for a business to really get the most out of.

It’s all about your ‘why.’ It has to be more than just making money. If you’re pitching to get funding, you need to be able to really explain that vision to get the right people to join your team, to get customers and pitching to get funding. Having a vision is critical no matter what you’re pitching. I think business is typically pitched at least to get good talent and good customers, and they may or may not need pitching for funding, but they definitely need the other two. When you’re pitching to get a customer, I think a lot people skip the vision part and just go right in to the features of a product without talking about what the vision for their company is and what makes that culture unique. You’re really missing out in my opinion, when you’re pitching to grow your business with new customers if you don’t explain your vision. What I see really works is when you explain how your vision matches your perspective client’s vision that there are some synergy between the brands. Then, they start going, “Maybe we should consider this.”

His name is escaping me, but the founder of 5-Hour Energy, he’s a billionaire. How is it that they get such great shelf space so consistently? They have a pitch that few people know about but it ties directly to not just a vision but the raison d’être of their company. The raison d’être of their company has to do with giving energy and hydration to the world. He is going to give away 99% of his billions of dollars. Those billions would go to fuel research that will help develop energy sources that go to the poorest and most remote of places around the world. Then the water finding and protecting and purifying innovations will also go to some parts of the world. That’s all happening because we’re buying 5-Hour Energy to keep us awake in our work day or driving. The stores are all the more motivated to give him the best space. They pitch that and they leverage that pitch so beautifully that it ultimately gets the more money, which just helps more people to be better off. What a great pitch.

Reminds me of what TOMS shoes does, that there’s a bigger vision here. For every shoe you buy, we give the shoes to someone who doesn’t. Let’s now jump into this focus part. When you’re pitching to get funded, if you’re not focused and really identifying one problem that you’re solving and trying to boil the ocean, as one investor told me, then the same thing is true when you’re pitching to get a client. Don’t tell me everything you do. Figure out ideally how this solves my problem by really focusing in on one thing. Even if you’re selling a car. You don’t talk about every single feature or a benefit. You figure out what’s important to that person. Is it the speed? Is it the way it feels? Is it the way it looks? Then, focus on that. Within focus on the strategy, what are some of the mistakes you think people make? We can go back to politics if you want. Is it not being focused on one message when you have multiple things to talk about, whether it’s world, international affairs, economy, integration? There are lots of different topics. How do you run a successful campaign when you’re having to solve multiple problems?

Let me answer it on both sides of that coin on how to get money from angels investors, mezzanine, whatever level it may be. I’ve sat on many of those boards, facilitated those boards that are interviewing people, giving their pitch. One of the easiest ways to prove you have clarity of focus on the right market is that you’ve actually pre-sold, whether you’ve been paid or not, that exact market and have lined up those customers. There’s nothing more real, nothing more scientific than people who will sign a contract or actually write a check to give money for something you’re about to build even if you’re in beta stage. That’s the ultimate proof of focus is that you define that ideal customer, you’ve lined them up and you’ve prepped those kids for future sales. That’s on the pitch side there.

The metaphor that we saw in the campaign of 2016 in regards to an intensified focus on a handful of messages could be seen in the areas of safety. You could have as an overwriting theme. Pride is an overwriting theme. Dive down a little bit deeper and that’s when you get into the immigration, defense and security, law and order, jobs, economy and trade. This is going to segue over into points of divergence, the sixth aspect. The crossover between intensified focus of getting some messages out much more rapidly and intensely, that were also messages that are completely different. For example, let’s just take jobs, economy and trade. Trump was able to own the Anti-NAFTA and TPP trade angle because of something that’s traditionally Republican. Trump, many political analysts are now saying has snapped up of working white vote for maybe good because he is so ably captured that. The Democrats are at a lost because they were pro-NAFTA and pro-TPP. Besides Parot from way back 1992 or some outliers like that, there really is nobody should promoted that. It was a sentiment that was in the marketplace and many voters moved over because of it, from both sides of the table. It was an apolitical bipartisan angle.

The other intensification of focus angle on the pride side we could take. We saw both Bill Clinton and Ronal Reagan used the Make America Great Again theme. Now, only Trump was the one to get the service trademark for it legally so he can sell it on tea cups or whatever. The point is, it was a proven theme. It was proven in two big wins with Bill Clinton and Ronald Reagan in very tough races where it was a lot closer than people might remember. The point is that theme played well to all sides. That was another intensification of focus angle that Trump so aptly took. He knew how to go on both sides of the political spectrum which something nobody else could touch. For example, law and order thing. With everything from Wall Street to Black Lives Matter, highly controversial topics, people were afraid to touch either with a ten-foot pole but he blew it all apart and set law and order, safety, safety and people resonated at least for enough of the percentage of others that resonated with. He intensified that focus. He blocked it off as a point of divergence and owned a few different facets of topics there that others couldn’t snap up.

It’s interesting because what I heard you saying was if you have multiple things, lump them under one theme whether it’s pride or safety. Then, under those themes comes where all the other things fit in. You’re still keeping it fairly simple with your focus. We’re talking about safety and then there’s lots of topics under that. We’re talking about pride, Making American Great Again and jobs. I think that’s a very clever way to figure out if you’ve got a lot of things to offer, if you’re a company with a lot of different products for example, come up with some themes. If you’re selling dog food, the investors want to see the dogs eating the food and the customers. Customers really like to be the first. They like to see proof of concept and some case studies. Getting that first customer is just as tricky as getting that first investor.

I’ve got to throw you something out here, John. I have friend had a client from a billion-dollar pet food company that thought they had struck a new big cord which was better tasting dog food.

They actually tested it. It’s a Fortune 40 company that did it. It was Procter & Gamble and they know the odds. The bottom line was they knew for a fact dogs love this new flavor better. Problem is, dogs aren’t the customer; the owners are. It was failing miserably in the test markets and it took a brilliant product manager to admit that all their research previous was wrong and they had to pivot. They basically chose to promote healthier and were able to improve some aspects of the product to be healthier. The buyers want a longer living dog, not one that just enjoys its food.

I think the same is true of customers. You’ve got to really tap into who’s the customer here. For example, if you’re selling children’s clothing, is it the children that are telling their parents to buy for them or is it the mom and dad that say, “That’s a cool brand,” and how do you target your marketing accordingly. I think I’d be remiss if I didn’t ask about what impact does it have when there’s a scandal? There’s a scandal with United Airlines pulling a man off the plane. There’s the scandal of Trump being heard, the entertainment show that most people thinking. That’s going to ruin his chances of winning or “The stocks is going to plummet on United Airlines.” Uber had a scandal about the way they were treating women in the workforce and started the whole hashtag of taking Uber off your phone. How do scandals impact strategy?

It depends on the response. In fact, I am waiting what they had brought to see what United does right now watching that video come out. We go back, everybody has heard the Tylenol response when the poisonings happened. They spoke with great candor, simplicity, directness, contriteness, concern, compassion and humility. They dealt very directly, honestly and tactfully with it. They actually grew their market share in the long run and what they lost was made up for by that growth. Similar things happened with other products. Again, I’m trying to be objective here. Politicians, it depends on how they handle it. Do they run from the issue? If we go back to Romney, he ran from the Mother Jones video that got out of him saying whatever percent will never be brought over. He did really deal with it that directly.

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Trump is a completely different animal when it comes to embracing conflict and public debate. Actually, I’ve been conducting an unofficial survey asking a lot of people who were either Hillary or Bernie people, “How would you rate Trump on his candor?” I didn’t say honesty, I said candor. He rates extremely high on that. When he has a controversial statement get out, if he addresses it directly, he is able to get out of it in a way that most people cannot. That’s an advantage he has; the bald, fearlessness of confronting the press or an issue. His calmness that he keeps before that storm rustles up. That was actually a part of what I labeled in the seventh aspect of good strategy, the advantageous approach. I think where he beat his political opponents was where he was not your typical politician. The candor, the simplicity, the bold fearlessness, his calmness before the storm, under the umbrella of how he spoke gave him an advantage in his approach that few politicians have.

There are other politicians who have done that. In fact, it was a strength of John McCain for a while. John McCain has lost a lot of his core support because he has whether it’s prevarication or flip flopping or whatever you want to call it. He has been a little bit all over the board. He’s been very anti-immigration. He’s been very in the middle. He’s been very on the other side. It’s another example of the frustration people have with politicians being all over. I was just on the phone with a politician who could answer your question. That’s atypical and Trump is atypical that way. That was one of the ways he could deal with scandal unlike others before him. That was a tactic; the release of a scandal is a tactic, not a strategy and something that politicians don’t realize on both sides.

You talked about the final key of the strategy is the point of divergence and that’s how you’re handling push back or even a scandal is like doubling down on something.

In fact, the temporary ban on Muslims from entering the United States, he double downed that. The use of tariffs, he double downed on it. Renegotiating or withdrawing from NAFTA and TPP, double downed on it, taking the oil from ISIS. These are all divergent points. Building the wall, boldly saying, “Build the wall.” In fact, talking about it being ten feet higher was a doubling down and an aspect of a visionary state that people can see a wall ten feet taller.

How does a business use this? Can you give us an example of either a brand we know or one of your own?

TSP 134 | Mark Faust

You need to identify all your positioning points of uniqueness, advantage, equality and weakness.

Yes, this was something that our marketing genius has taught us, as well as Michael Porter from Harvard. Strategies, you really need to identify all your positioning points of uniqueness, advantage, equality and weakness as honestly or objectively as you can. Usually, a third party is needed to do this well. Then you need to verify the realty of that by, again ideally having a third party doing the depth interviews that Peter Drucker has always said over a required aspect of the strategy process which a few people do, so they’re really not doing strategy. It’s through customer depth interviews that you confirm what their views of your uniqueness or advantage or equality of the weaknesses are. If you get clear about those and connect those positioning points to a point of benefit and then a point of proof, then you’ve got some power behind those positioning points. Just building that sheet of positioning points is one of the three most powerful pieces of paper that we usually construct with our clients to get them to accelerate their growth or to turn around from a dire situation.

Mark, I can’t thank you enough for sharing your Winning Strategy, that’s the name of your book and for teaching us how we can use this turnaround mindset. Is there any last thoughts you want to leave us with?

Winning Strategy was really written to promote High-Growth Levers, which is the more for explanation and detail on how to build a unique strategy, culture and attitude of innovation throughout your organization. Any company of any size can facilitate that and the key is to involve more people, not fewer and to ask great questions. That’s what all my books have. There are lots of questions that help you facilitate this on your own.

How can people find you on social media?

Twitter is @MarkFaustSR. Then also HighGrowthLevers.com will get you to our site. All our books are available at all the typical outlets.

Thanks again, Mark.

 

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